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Share-based Compensation
9 Months Ended
Sep. 30, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Share-based Compensation

14.

SHARE-BASED COMPENSATION

The amount of share-based compensation expense recognized by the Company by location in its statements of operations for the three and nine months ended September 30, 2019 and 2018 is as follows (in thousands):

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Cost of revenues

 

$

18

 

 

$

6

 

 

$

47

 

 

$

15

 

Sales and marketing

 

 

368

 

 

 

709

 

 

 

976

 

 

 

828

 

General and administrative

 

 

429

 

 

 

273

 

 

 

1,126

 

 

 

415

 

Research and development

 

 

119

 

 

 

40

 

 

 

309

 

 

 

106

 

Total

 

$

934

 

 

$

1,028

 

 

$

2,458

 

 

$

1,364

 

2018 Equity Incentive Plan

In June 2018, the Company adopted the 2018 Equity Incentive Plan, or 2018 Plan, which authorized the issuance of up to 1.4 million shares, subject to an annual 4% evergreen increase, in the form of restricted stock, stock appreciation rights and stock options to the Company’s directors, employees and consultants. The amount and terms of grants are determined by the Company’s board of directors. All stock options granted to date have had exercise prices equal to the fair value, as determined by the closing price as reported by the Nasdaq Global Market, of the underlying common stock on the date of grant. The contractual term of stock options is up to 10 years, and stock options are exercisable in cash or as otherwise determined by the board of directors. Generally, stock options vest 25% upon the first anniversary of the date of grant and the remainder ratably monthly thereafter for 36 months. As of September 30, 2019, there were 1.2 million shares available for future issuance under the 2018 Plan.  

Stock Options

The following table summarizes the Company’s stock option activity for the nine months ended September 30, 2019:

 

 

 

Number of

Shares under

Option

(in thousands)

 

 

Weighted-

average

Exercise Price

per Option

 

 

Weighted-

average

Remaining

Contractual

Life (in years)

 

 

Aggregate

Intrinsic

Value

(in thousands)

 

Outstanding at December 31, 2018

 

 

2,711

 

 

$

3.59

 

 

 

 

 

 

 

 

 

Granted

 

 

802

 

 

$

14.82

 

 

 

 

 

 

 

 

 

Exercised

 

 

(841

)

 

$

2.83

 

 

 

 

 

 

 

 

 

Forfeited

 

 

(238

)

 

$

8.04

 

 

 

 

 

 

 

 

 

Outstanding at September 30, 2019

 

 

2,434

 

 

$

7.12

 

 

 

7.7

 

 

$

8,770

 

Exercisable at September 30, 2019

 

 

1,131

 

 

$

2.57

 

 

 

6.3

 

 

$

6,737

 

Vested and expected to vest at September 30, 2019

 

 

2,434

 

 

$

7.12

 

 

 

7.7

 

 

$

8,770

 

 

The Company recognized share-based compensation expense related to stock options of $0.6 million and $1.0 million for the three months ended September 30, 2019 and 2018, respectively, and $1.6 million and $1.3 million for the nine months ended September 30, 2019 and September 30, 2018, respectively. As of September 30, 2019, there was $7.0 million of total unrecognized compensation cost related to non-vested stock options which the Company expects to recognize over a weighted-average period of 3.2 years. The weighted-average grant-date fair value of stock options granted during the nine months ended September 30, 2019 was estimated at $7.99 per option. The total intrinsic value of stock options exercised during the nine months ended September 30, 2019 was $10.6 million.

For the nine months ended September 30, 2019, the grant-date fair value of stock options was estimated at the time of grant using the following weighted-average inputs and assumptions in the Black-Scholes option pricing model:

 

Estimated fair value of common stock

 

$

14.82

 

Exercise price

 

$

14.82

 

Expected term (in years)

 

 

6.1

 

Risk-free interest rate

 

 

2.3

%

Expected volatility

 

 

55.3

%

Dividend yield

 

 

0

%

 

Restricted Stock Awards and Restricted Stock Units

The following table summarizes the Company’s restricted stock award and restricted stock unit activity for the nine months ended September 30, 2019:

 

 

 

Non-vested

Restricted

Stock Awards

(in thousands)

 

 

Weighted-

average

Grant-date

Fair Value

 

 

Non-vested

Restricted

Stock Units

(in thousands)

 

 

Weighted-

average

Grant-date

Fair Value

 

Non-vested at December 31, 2018

 

 

4

 

 

$

2.32

 

 

 

43

 

 

$

25.21

 

Granted

 

 

-

 

 

$

-

 

 

 

232

 

 

$

14.38

 

Vested

 

 

(4

)

 

$

2.32

 

 

 

(17

)

 

$

20.83

 

Forfeited

 

 

-

 

 

$

-

 

 

 

(18

)

 

$

15.68

 

Non-vested at September 30, 2019

 

 

-

 

 

$

-

 

 

 

240

 

 

$

15.72

 

 

The Company recognized approximately $0.3 million and $0.1 in share-based compensation expense related to restricted stock awards and restricted stock units for the three months ended September 30, 2019 and 2018, respectively, and $0.9 million and $0.1 for the nine months ended September 30, 2019 and September 30, 2018, respectively. As of September 30, 2019, there was $3.2 million of unrecognized compensation cost related to non-vested restricted stock awards and restricted stock units, which the Company expects to recognize over a weighted-average period of 2.5 years. The total fair value at the vesting date of restricted stock awards and restricted stock units vested during the nine months ended September 30, 2019 was $0.3 million.