STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

11. STOCK-BASED COMPENSATION

Historically, stock options have been granted with an exercise price equal to the market value of the common stock on the date of grant, with expiration 10 years from the date they are granted, and generally vest over a one to three-year period for employees and members of the Board. Upon exercise, new shares will be issued by the Company. The restricted shares and restricted stock units (“RSUs”) granted to Board members and employees generally have a three-year graded vesting period and are subject to accelerated vesting and forfeiture under certain circumstances.

The following table provides the weighted average assumptions used in determining the fair value of the stock option awards granted during the nine-month periods ended September 30, 2022 and 2021.

	September 30, 2022			September 30, 2021
	(unaudited)
Risk-free interest rate		1.76	%		0.78	%
Expected life		6.0 years			6.0 years
Expected volatility		129.93	%		134.79	%
Dividend yield		-			-

During March 2021, the Company granted 312,500 stock options with an exercise price of $6.00 and 152,500 RSUs. The market value of the Company’s common stock was $5.00 at the grant date of these awards. The Company recognized approximately $0.5 million and $0.4 million of stock-based compensation expense within continuing operations during the three-month periods ended September 30, 2022 and 2021, respectively and approximately $1.1 million and $1.1 million of stock-based compensation expense during the nine-month periods ended September 30, 2022 and 2021, respectively. The following table has a breakout of stock-based compensation expense from continuing operations by line item.

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2022		2021		2022		2021
	(unaudited)				(unaudited)
Cost of revenue	$	19	$	52	$	67	$	220
Sales and marketing		42		76		128		201
Research and development		-		24		-		83
General and administrative*		440		276		915		635
Total stock compensation expense	$	501	$	428	$	1,110	$	1,139

* Includes ESPP expense