Stock Based Compensation

6 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement [Abstract]

Stock Based Compensation

Stock-Based Compensation

The Company applies the fair value recognition provisions of ASC Topic 718: Stock Compensation. Stock-based compensation expense, net of forfeitures of $64.0 thousand and $27.0 thousand for the three months ended June 30, 2021 and 2020, respectively, and stock-based compensation expense, net of forfeitures of $107.0 thousand and $32.0 thousand for six months ended June 30, 2021 and 2020, respectively, was recorded in the following line items in the condensed consolidated statements of operations for the three and six months ended June 30:

	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Cost of sales - contracts	$	116	$	101	$	184	$	199
Selling, general and administrative	4,135		1,022		5,387		2,013
Total stock-based compensation expense	$	4,251	$	1,123	$	5,571	$	2,212

At June 30, 2021, the aggregate unrecognized compensation expense related to unvested equity awards was $39.2 million, which is expected to be recognized as compensation expense in fiscal years 2021 through 2024.

A summary of stock option activity for the six months ended June 30, 2021 is below:

(in thousands, except for exercise price)	Options outstanding	Weighted average exercise price
Outstanding at January 1, 2021	957	$	14.29
Granted	563	7.79
Exercised	(54)	10.70
Canceled/forfeited	(63)	13.64
Outstanding at June 30, 2021	1,403	$	11.83

The fair value of options at the date of the grant was estimated using the Black-Scholes model with the following assumptions for the six months ended June 30, 2021:

Weighted average expected term	3.1 years
Weighted average risk-free interest rate	0.4		%
Weighted average expected volatility	56.5		%
Expected dividend yield	None
Estimated fair value (per share)	$	60.47

A summary of unvested restricted stock activity for the six months ended June 30, 2021 is below:

(in thousands, except for award value)	Restricted Stock Awards	Weighted average award value
Outstanding at January 1, 2021	61	$	25.62
Granted	2	22.36
Vested	(34)	24.81
Canceled/forfeited	(1)	20.94
Outstanding at June 30, 2021	28	$	26.51

A summary of unvested restricted stock units (“RSU”) activity for the six months ended June 30, 2021 is below:

(in thousands, except for award value)	RSU Awards	Weighted average award value
Outstanding at January 1, 2021	427	$	15.46
Granted	149	67.24
Vested	(115)	17.08
Canceled/forfeited	(4)	66.82
Outstanding at June 30, 2021	457	$	31.39