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Note 3 - Share-based Compensation

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Text Block]

3. Stock-Based Compensation

The Company’s 2006 Incentive Plan (“the Plan”) provides for cash-based awards or the grant or issuance of stock-based awards. As of December 31, 2020, 45 thousand shares were then available for future grant under the Plan. At the 2021 Annual Meeting, an additional 350 thousand shares were approved for future grant under the Plan. As of September 30, 2021, 277 thousand shares remained available for future grant under the Plan.

Stock-based compensation is measured at the grant date based on the fair value of the award and is recognized as an expense over the requisite service period (generally the vesting period of the equity grant). The compensation cost charged against income is included in cost of revenues and operating expenses as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Stock-based compensation related to:
Stock option grants	$	53	$	102	$	275	$	353
Stock unit awards		125		24		289		96
Total stock-based compensation	$	178	$	126	$	564	$	449

There was no income tax benefit recognized in the condensed consolidated statements of operations and comprehensive income/(loss) for stock-based compensation arrangements for the three and nine months ended September 30, 2021 and 2020.

A summary of the Company’s stock option activity for the nine months ended September 30, 2021, is as follows (in thousands except per share amounts):

						Weighted
				Weighted		Average
				Average		Remaining		Aggregate
	Number of			Exercise Price		Contractual Life		Intrinsic
	Shares			Per Share		(years)		Value ⁽¹⁾
Outstanding, December 31, 2020		604		$	14.31		7.0	$	-
Granted		-		$	-
Exercised		-		$	-
Cancelled		-		$	-
Forfeited		( 29	)	$	3.47
Outstanding, September 30, 2021		575		$	14.23		6.3	$	147

Exercisable, September 30, 2021		464		$	15.12		6.0	$	-

(1)

Intrinsic value is calculated based on the amount by which the closing market value of the Company’s stock exceeded the exercise price of the underlying options, multiplied by the number of shares.

A summary of the Company’s stock unit award (“SUA”) activity for the nine months ended September 30, 2021, is as follows (in thousands except per share amounts):

	Number of Shares			Weighted Average Grant-Date Fair Value Per Share

Outstanding & Unvested, December 31, 2020		166		$	4.50
Granted		119		$	6.55
Converted to common stock		(6	)	$	11.55
Cancelled		(1	)	$	13.36
Forfeited		-			-
Outstanding & Unvested, September 30, 2021		278		$	5.28

As of September 30, 2021, 899 thousand shares of common stock were reserved for issuance under the Plan. As of September 30, 2021, the unamortized fair value of awards relating to outstanding SUAs and options was $1.4 million, which is expected to be amortized over a weighted average period of 3.1 years.