Note 3 - Stock-based Compensation

3 Months Ended

Mar. 31, 2023

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 March 31, 2023, 321 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
	March 31,
	2023		2022
Stock-based compensation related to:
Stock option grants	$	20	$	53
Stock unit awards		157		126
Total stock-based compensation	$	177	$	179

There was no income tax benefit recognized in the condensed consolidated statements of operations for stock-based compensation arrangements for the three ended March 31, 2023, and 2022.

A summary of the Company’s stock option activity for the three months ended March 31, 2023, 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, 2022		508		$	14.19		5.1	$	25
Canceled		( 64	)	$	14.70
Outstanding, March 31, 2023		444		$	14.09		4.8	$	33
Exercisable, March 31, 2023		402		$	14.67		4.6	$	17

(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 three months ended March 31, 2023, 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		238		$	6.10
Converted to common stock		(5	)	$	6.36
Cancelled		(2	)	$	6.19
Forfeited		(9	)	$	5.90
Outstanding & Unvested, March 31, 2023		222		$	6.10

As of March 31, 2023, 912 thousand shares of common stock were reserved for issuance under the Plan. As of March 31, 2023, the unamortized fair value of awards relating to outstanding SUAs and options was $941 thousand, which is expected to be amortized over a weighted average period of 2.2 years.