Note 10 - Shareholders' Equity and Stock-based Compensation

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

10. Shareholders’ Equity and Stock-based Compensation

The Company has a 2006 Equity Incentive Plan and an Amended and Restated 2015 Equity Incentive Plan. The 2015 plan, which was approved by the shareholders on April 24, 2015, replaced the 2006 plan. New grants may not be made under the 2006 plan; however certain option grants under the 2006 plan remain exercisable as of June 30, 2021.

Under the 2015 Plan, the Company may grant stock options, stock awards, stock appreciation rights, restricted stock units (“RSUs”), performance restricted stock units (“PRSUs”) and other equity-based awards. Under all awards, the terms are fixed on the grant date. The 2015 plan was amended and restated in 2020 to reflect certain corporate governance changes and amended in 2021 to increase the number of shares of common stock that could be awarded under the 2015 plan by 500 shares, subject to shareholder approval, which was obtained on May 4, 2021.

For the six months ended June 30, 2021, the Company granted a total of 113 RSUs and 15 PRSUs at a weighted average closing price on the date of grant of $21.35 and $21.78, respectively. The RSUs vest in equal, annual installments over a three year period beginning on the first anniversary of the date of grant at which time common stock is issued with respect to vested units. The PRSUs will vest depending upon the achievement of total revenue in specific markets during 2023 at a threshold level (below which no PRSUs will vest), a target level and a maximum level (at which the maximum number of PRSUs will vest). 

The Company has also granted stock options under the plans. For the six months ended June 30, 2021, and 2020, the Company did not grant any options. Options granted under the plans generally vest in equal, annual installments over a three year period beginning on the first anniversary of the date of grant and have a maximum term of 10 years. During the six months ended June 30, 2021, 11 options were forfeited in order to cover the exercise price of the options.

Stock award activity as of and during the six months ended June 30, 2021 was as follows:

	Outstanding Awards
	Stock Options			RSUs			Total			Stock Option Weighted-Average Exercise Price (a)		Aggregate Intrinsic Value
Outstanding at December 31, 2020		690			217			907		$	6.51
Awards granted		-			128			128			-
Awards exercised or released		(73	)		(97	)		(170	)		5.08
Outstanding at June 30, 2021		617			248			865		$	6.68	$	15,326
Exercisable at June 30, 2021		617						617		$	6.68	$	9,743
Available for future grant at December 31, 2020								73
Available for future grant at June 30, 2021								459

(a) The weighted average exercise price calculation does not include outstanding RSUs

The number of shares available for future grants at June 30, 2021 does not include a total of up to 256 shares subject to options outstanding under the 2006 Equity Incentive Plan, which will become available for grant under the 2015 Equity Incentive Plan as outstanding options under the 2006 Equity Incentive Plan expire, terminate, are cancelled or forfeited or are withheld in a net exercise of such options.

The Company recorded $566 and $1,019 of non-cash stock compensation expense for the three and six months ended June 30, 2021 compared to $1,336 and $1,712 for the same periods in 2020. As of June 30, 2021, there was $3,320 of total unrecognized compensation costs related to non-vested stock option and RSU awards that are expected to be recognized over a weighted-average period of 2.1 years. The total intrinsic value of options exercised during the six months ended June 30, 2021 was $1,333.

The Company also has an Employee Stock Purchase Plan (the “Purchase Plan”). The Purchase Plan, as amended, through June 30, 2021, provides that a maximum of 300 shares may be sold under the Purchase Plan. There were 5 and 8 shares purchased under the plan for the six months ended June 30, 2021 and 2020, respectively.