Note 6 - Share-Based Compensation

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

6.         Share-Based Compensation

Share-based compensation expense is included in costs and expenses in the unaudited condensed consolidated statements of operations as follows:

	Three Months Ended March 31,
	2022		2021
Share-based compensation expense:
Sales and marketing	$	50	$	30
Technology support		5		11
General and administrative		460		458
Share-based compensation costs	$	515	$	499

Service-Based Options.  The Company granted the following service-based options for the three months ended March 31, 2022, and 2021, respectively:

	Three Months Ended March 31,
	2021		2020
Number of service-based options granted		500,000		765,000
Weighted average grant date fair value	$	2.09	$	1.82
Weighted average exercise price	$	2.94	$	2.60

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. 

The grant date fair value of stock options granted during these periods was estimated using the following weighted average assumptions:

	Three Months Ended March 31,
	2022			2021
Dividend yield		—			—
Volatility		94.8	%		94.4	%
Risk-free interest rate		1.6	%		0.7	%
Expected life (years)		4.8			4.8

Stock option exercises.  The following stock options were exercised during the three months ended March 31, 2022, and 2021, respectively:  

	Three Months Ended March 31,
	2021		2020
Number of stock options exercised		—		54,705
Weighted average exercise price	$	—	$	2.30

A summary of the Company’s outstanding stock options as of March 31, 2022, and changes during the three 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, 2021		4,381,348		$	3.85		4.3	$	1,662
Granted		500,000			2.94		—		—
Exercised		—			—		—		—
Forfeited or expired		(185,826	)		4.58		—		—
Outstanding at March 31, 2022		4,695,522		$	3.73		4.3	$	177
Vested and expected to vest at March 31, 2022		4,541,629		$	3.76		4.3	$	175
Exercisable at March 31, 2022		3,214,119		$	4.15		3.6	$	141

Restricted Stock Awards. The Company granted an aggregate of 575,000 and 220,000 restricted stock awards (“RSAs”) to certain executive officers of the Company during the first quarter of 2022 and 2021, respectively. 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.