Share-Based Compensation

6 Months Ended

Jun. 30, 2021

Share-Based Compensation

SNOTE 6 - Share-Based Compensation

 6. Share-Based Compensation

Share-based compensation expense is included in costs as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Share-based compensation expense:
Sales and marketing	$	32	$	29	$	63	$	61
Technology support		8		28		19		55
General and administrative		385		462		842		912
Share-based compensation costs		425		519		924		1,028
Total share-based compensation costs	$	425	$	519	$	924	$	1,028

Service-Based Options. The Company granted the following service-based options for the three and six months ended June 30, 2021, and 2020, respectively:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Number of service-based options granted		55,000		55,000		820,000		515,000
Weighted average grant date fair value	$	1.94	$	0.67	$	1.83	$	1.05
Weighted average exercise price	$	2.75	$	1.08	$	2.61	$	1.90

These options are valued using a Black-Scholes option pricing model. Options issued to employees generally vest one-third on the first anniversary of the grant date and ratably over twenty-four months thereafter. The vesting of these awards is contingent upon the employee’s continued employment with the Company during the vesting period and vesting may be accelerated under certain conditions, including upon a change in control of the Company and, in the case of certain officers of the Company, termination of employment by the Company without cause and voluntary termination of employment by such officer with good reason. Options issued to non-employee directors generally vest monthly over a 12-month period and vesting may be accelerated under certain conditions, including upon a change in control of the Company and upon the termination of service as a director of the Company in the event such termination of service is due to resignation, failure to be re-elected, failure to be nominated for re-election, or without removal for cause. 

Restricted Stock Awards. The Company granted an aggregate of 220,000 restricted stock awards (“RSAs”) in the first quarter of 2021 to certain executive officers of the Company. The RSAs are service-based, and the forfeiture restrictions lapse with respect to one-third of the restricted stock on each of the first, second and third anniversaries of the date of the award. Lapsing of the forfeiture restrictions may be accelerated in the event of a change in control of the Company and will accelerate upon the death or disability of the holder of the RSAs.

The grant date fair value of stock options granted during these periods was estimated using the Black-Scholes option pricing model using the following weighted average assumptions:

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Dividend yield		—			—			—			—
Volatility		95	%		81	%		94	%		70	%
Risk-free interest rate		0.9	%		0.3	%		0.8	%		1.1	%
Expected life (years)		4.7			4.6			4.8			4.6

Stock option exercises. The following stock options were exercised during the three and six months ended June 30, 2021, and 2020, respectively:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Number of stock options exercised		21,962		—		76,667		—
Weighted average exercise price	$	2.30	$	—	$	2.30	$	—

A summary of the Company’s outstanding stock options as of June 30, 2021, and changes during the six months then ended is presented below:

	Number of Options			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
						(years)		(thousands)
Outstanding at December 31, 2020		3,758,670		$	4.26		4.7	$	270
Granted		820,000			2.61
Exercised		(76,667	)		2.30				55
Forfeited or expired		(87,571	)		8.87
Outstanding at June 30, 2021		4,414,432		$	3.90		4.7	$	1,020
Vested and expected to vest at June 30, 2021		4,232,627		$	3.95		4.7	$	945
Exercisable at June 30, 2021		2,666,343		$	4.62		3.9	$	340