SHARE-BASED COMPENSATION

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

SHARE-BASED COMPENSATION

8. SHARE-BASED COMPENSATION

We issue share-based compensation to employees in the form of restricted stock units (RSUs), performance stock units (PSUs) and stock options. We account for the share-based awards by recognizing the fair value of share-based compensation expense on a straight-line basis over the service period of the award, net of estimated forfeitures. The fair value of RSUs and non-executive PSUs is determined by the closing price of our common stock on the grant date. The fair value of stock options is estimated on the grant date using the Black-Scholes option pricing model. Changes in estimated inputs or using other option valuation methods may result in materially different option values and share-based compensation expense.

The following table summarizes the amount of share-based compensation expense by line item on the statements of operations:

	Three Months Ended
Share-based compensation expense	March 31,
(in thousands)	2024		2023
Research and development expense	$	1,344	$	757
Sales, marketing, general and administrative expense		2,399		2,192
	$	3,743	$	2,949

Options activity and positions

The following table summarizes shares, weighted-average exercise price, weighted-average remaining contractual term and aggregate intrinsic value of options outstanding and options exercisable as of March 31, 2024:

					Weighted-
			Weighted-		Average
			Average		Remaining		Aggregate
			Exercise		Contractual		Intrinsic
Options	Shares		Price		Term (years)		Value
Outstanding as of March 31, 2024		668,000	$	1.42		4.3	$	412
Exercisable as of March 31, 2024		668,000	$	1.42		4.3	$	412

As of March 31, 2024, there is no unrecognized share-based employee compensation related to stock options.

Restricted stock activity and positions

The following table summarizes activity and positions with respect to RSUs and PSUs for the three months ended March 31, 2024 (in thousands, except per share data):

				Weighted-average
	Shares			price
Unvested as of December 31, 2023		9,983		$	3.09
Granted		34			2.35
Vested		(802	)		6.12
Forfeited		-			-
Unvested as of March 31, 2024		9,215		$	2.81

During the quarter ended March 31, 2024, we issued 34,000 shares to non-executive employees for new hire grants. These shares were valued based on the closing price of our common stock on the dates of grant and vest over three or four years.

As of March 31, 2024, our unrecognized share-based compensation related to RSUs was $3.3 million, which we plan to expense over the next 2.0 years, our unrecognized share-based compensation related to executive PSUs was $4.4 million, which we plan to expense over the next 1.6 years, and our unrecognized share-based compensation related to the non-executive PSUs was $2.0 million, which we plan to expense over the next 1.0 years.