Note 3 - Stock-based Compensation

6 Months Ended

Jun. 30, 2022

Notes to Financial Statements

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 June 30, 2022, 199 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				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Stock-based compensation related to:
Stock option grants	$	42	$	77	$	95	$	221
Stock unit awards		196		92		322		165
Total stock-based compensation	$	238	$	169	$	417	$	386

There was no income tax benefit recognized in the condensed consolidated statements of operations for stock-based compensation arrangements for the three and six months ended June 30, 2022, and 2021.

A summary of the Company’s stock option activity for the six months ended June 30, 2022, is as follows (in thousands except per share amounts and years):

						Weighted Average
				Weighted Average		Remaining		Aggregate
	Number of			Exercise Price		Contractual Life		Intrinsic
	Shares			Per Share		(years)		Value(1)
Outstanding, December 31, 2021		574		$	14.23		6.1	$	100
Granted		-		$	-
Exercised		( 1	)	$	4.07
Forfeited		( 1	)	$	4.07
Outstanding, June 30, 2022		572		$	14.23		5.6	$	70
Exercisable, June 30, 2022		519		$	14.89		5.4	$	25

(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 six months ended June 30, 2022, is as follows (in thousands except per share amounts):

	Number of Shares			Weighted Average Grant-Date Fair Value Per Share
Outstanding & Unvested, December 31, 2022		224		$	5.48
Granted		128		$	6.52
Converted to common stock		(36	)	$	6.45
Cancelled		(6	)	$	6.43
Forfeited		(36	)	$	5.66
Outstanding & Unvested, June 30, 2022		274		$	5.76

As of June 30, 2022, 1,131 thousand shares of common stock were reserved for issuance under the Plan. As of June 30, 2022, the unamortized fair value of awards relating to outstanding SUAs and options was $1.5 million, which is expected to be amortized over a weighted average period of 3.2 years.