Employee Stock and Benefit Plans

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Employee Stock and Benefit Plans

Note 12. Employee Stock and Benefit Plans

Equity Compensation Plans.  Under our equity incentive plans, we may grant various types of equity awards to employees and Directors. We have granted time-vest and performance-vest stock options and time-vest and performance-vest restricted stock. Generally, options vest based on continuous employment, over a four-year period. The options generally expire seven years from the date of grant and are exercisable at the market value of the common stock at the grant date. Time-vest restricted stock awards generally vest based on continuous employment over a two or four-year period. Performance-based awards vest if the specified performance targets are met and the grantee remains employed over the required period. The performance targets for these awards are generally based on the achievement of company-specific financial results. For these performance-based awards, expense is recognized when it is probable the performance goal will be achieved.

We issue new shares of common stock upon exercise of stock options and the vesting of restricted stock. As of December 31, 2021, there were 2.3 million shares of common stock authorized for future equity awards. Each restricted stock unit granted reduces, and each restricted stock unit forfeited or canceled increases, the shares available for future grant by a factor of 1.6 shares. Each stock option granted reduces, and each stock option forfeited or canceled increases, the shares available for future grant by a factor of one share.

Stock-based compensation expense recognized in our consolidated statements of operations includes amounts related to stock options and restricted stock, and was as follows (in thousands):

	Years Ended December 31,
	2021		2020
Total stock-based compensation expense	$	4,224	$	1,420

The total stock-based compensation amounts disclosed above are recorded in the respective line items within operating expenses in the consolidated statements of operations. Included in the expense for 2021 was $2.0 million of stock-based compensation, resulting from certain equity award modifications that will be cash settled. At December 31, 2021, $1.3 million of this liability was recorded in Accrued and other current liabilities and $0.7 million was recorded in Other long-term liabilities within our consolidated balance sheets. Also included in the expense for 2021 was stock-based compensation recorded for 2020 incentive bonuses paid in fully vested restricted stock units, which were authorized and granted in the first quarter of 2021. No stock-based compensation was capitalized as part of the cost of an asset as of December 31, 2021 or 2020. As of December 31, 2021, we had $2.2 million of total unrecognized compensation cost, net of estimated forfeitures, related to stock awards. The unrecognized compensation cost is expected to be recognized over a weighted-average period of approximately three years.

As discussed in Note 1. Description of Business and Summary of Significant Accounting Policies, the valuation models for stock option awards require various highly judgmental assumptions. The assumption for the expected term of the options represents the estimated period of time until exercise and is based on historical experience of similar awards, including the contractual terms, vesting schedules, and expectations of future employee behavior. Expected stock price volatility is based on historical volatility of our common stock for the related expected term. The risk-free interest rate is based on the implied yield available on U.S. Treasury zero-coupon issues with a term equivalent to the expected term of the stock options. The dividend yield is estimated at zero because we do not currently anticipate paying dividends in the foreseeable future.

 The fair value of options granted used the following weighted average assumptions:

Years ended December 31,
2021	2020

Expected dividend yield	—	%	—	%
Risk-free interest rate	0.59	%	0.37	%
Expected term (years)	3.9		4.8
Volatility	71	%	45	%

Restricted stock unit and award activity was as follows (shares are in thousands):

	Number of Shares	Weighted Average Grant Date Fair Value Per Share		Total Grant Date Fair Value of Vested Awards (000's)
Nonvested shares, December 31, 2019	845	$	2.24
Granted	1,446	1.49
Vested	(218)	1.89		$	412
Forfeited/Canceled	(270)	2.38
Nonvested shares, December 31, 2020	1,803	$	1.65
Granted	886	2.26
Vested	(392)	2.38		$	933
Forfeited/Canceled	(211)	2.00
Nonvested shares, December 31, 2021	2,086	$	1.74

At December 31, 2021, the aggregate intrinsic value of restricted stock awards was $2.0 million and the weighted average remaining contractual term was approximately two years.

Stock option activity (shares are in thousands):

	Options Outstanding			Weighted Average Grant Date Fair Value
	Number of Shares	Weighted Average Exercise Price
Outstanding, December 31, 2019	7,471	$	4.25
Options granted at common stock price	2,382	1.26		$	0.47
Options exercised	—	—
Options canceled	(3,354)	4.59
Outstanding, December 31, 2020	6,499	$	2.97
Options granted at common stock price	1,737	2.13		$	1.12
Options exercised	(258)	2.07
Options canceled	(1,499)	3.77
Outstanding, December 31, 2021	6,479	$	2.60
Exercisable, December 31, 2021	3,276	$	3.33
Vested and expected to vest, December 31, 2021	5,149	$	2.80

As of December 31, 2021, the weighted average remaining contractual life of the options was as follows: outstanding options 4.7 years; exercisable options 3.3 years; and vested and expected to vest options 4.3 years. As of December 31, 2021, there was no aggregate intrinsic value for our outstanding, exercisable, and vested and expected to vest options, respectively.

The aggregate intrinsic value of stock options exercised in 2021 was $0.4 million, and for 2020 was zero.

Retirement Savings Plan. We have a salary deferral plan (401(k) Plan) that covers substantially all employees. Eligible employees may contribute a portion of their eligible compensation to the plan up to limits stated in the plan documents, not to exceed the dollar amounts set by applicable laws. We match a percentage of employee contributions up to certain limits. During the years ended December 31, 2021 and 2020, we contributed $0.2 million and $0.3 million, respectively, in matching contributions. We can terminate the matching contributions at our discretion. We have no other post-employment or post-retirement benefit plans.