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Share-Based Compensation
3 Months Ended
Mar. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Share-Based Compensation

Note 10 – Share-Based Compensation

The Company’s share-based compensation awards are issued under the 2020 Equity Incentive Plan (2020 Plan) and the predecessor 2016 Equity Incentive Plan (2016 Plan) and 2006 Equity Incentive Plan (2006 Plan).  Any awards that expire or are forfeited under the 2016 Plan or 2006 Plan become available for issuance under the 2020 Plan. As of March 31, 2021, 1,112,052 shares of common stock remained available for future issuance under the 2020 Plan.

Share-Base Compensation Expense

Pre-tax share-based compensation expense reported in the Company’s statements of operations was (in thousands):

 

 

Three Months ended March 31,

 

 

 

2021

 

 

2020 (1)

 

Research and development

 

$

268

 

 

$

 

Sales, marketing, general and administrative

 

 

1,484

 

 

 

 

Total

 

$

1,752

 

 

$

 

(1)

Includes the reversal of performance condition option expense netted against 2020 expense.

Stock Option Activity

 

Stock option activity during the three months ended March 31, 2021, excluding the Bonus Option Program described below, was (in thousands, except weighted average exercise price and weighted average contractual life):

 

 

Number of

Options

 

 

Weighted

Average

Exercise

Price

 

 

Weighted

Average

Contractual

Life (Years)

 

 

Aggregate Intrinsic Value

 

Outstanding ‑ January 1, 2021

 

 

2,321

 

 

$

1.82

 

 

 

7.4

 

 

$

42,580

 

Granted

 

 

858

 

 

 

20.55

 

 

 

9.9

 

 

 

285

 

Forfeited/canceled

 

 

(62

)

 

 

0.23

 

 

 

 

 

 

 

Exercised

 

 

(209

)

 

 

1.96

 

 

 

 

 

 

 

Outstanding ‑ March 31, 2021

 

 

2,908

 

 

$

7.36

 

 

 

8.1

 

 

$

37,655

 

Exercisable - March 31, 2021

 

 

1,294

 

 

$

3.97

 

 

 

7.0

 

 

$

21,149

 

Restricted Stock Units and Restricted Stock Activity

As of March 31, 2021, there were 79,104 restricted stock units outstanding, with a weighted average grant date fair value of $6.83 per share.

The remaining unrecognized stock‑based compensation expense for options and RSUs was approximately $8.1 million as of March 31, 2021, and is expected to be amortized to expense over the next 4.8 years.

Bonus-to-Options Program

As of March 31, 2021, there were 424,145 options outstanding under the Bonus-to-Options Program (Bonus Option Program). These options are fully-vested and have a weighted average exercise price of $17.33 per share and an intrinsic value of approximately $1.3 million as of March 31, 2021. During the three months ended March 31, 2021, 265,615 options with a weighted average exercise price of $20.67 and a remaining weighted average contractual life of 9.9 years were granted, and the Company received $65,440 of proceeds upon the exercise of 14,699 options. The Company accrued $0.5 million during the three month period ended March 31, 2021 related to the estimate of the 2021 Bonus Option Program.  Options granted, if any, pertaining to the performance of the Bonus Option Program are typically approved and granted in first quarter of the year following completion of the fiscal year.  

Employee Stock Purchase Plan

A total of 338,106 shares of our common stock have been reserved for issuance under the Employee Stock Purchase Plan (ESPP). The initial offering period began January 1, 2021 and continues through August 31, 2021.  As of March 31, 2021, no shares have been issued under the ESPP.