Note 10 - Shareholders' Equity and Stock-based Compensation

9 Months Ended

Sep. 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 September 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 nine months ended September 30, 2021, the Company granted a total of 115 RSUs and 15 PRSUs at a weighted average closing price on the date of grant of $21.39 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 historically granted stock options under the plans. For the nine months ended September 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 nine months ended September 30, 2021, 25 options were forfeited in order to cover the exercise price of the options.

Stock award activity as of and during the nine months ended September 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		-			130			130			-
Awards exercised or released		(122	)		(98	)		(220	)		5.73
Outstanding at September 30, 2021		568			249			817		$	6.68	$	11,048
Exercisable at September 30, 2021		568						568		$	6.68	$	6,520
Available for future grant at December 31, 2020								73
Available for future grant at September 30, 2021								471

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

The number of shares available for future grants at September 30, 2021 does not include a total of up to 234 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 $470 and $1,489 of non-cash stock compensation expense for the three and nine months ended September 30, 2021 compared to $332 and $2,044 for the same periods in 2020. As of September 30, 2021, there was $2,900 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 1.9 years. The total intrinsic value of options exercised during the nine months ended September 30, 2021 was $1,909.

The Company also has an Employee Stock Purchase Plan (the “Purchase Plan”). The Purchase Plan, as amended, through September 30, 2021, provides that a maximum of 300 shares may be sold under the Purchase Plan. There were 9 and 12 shares purchased under the plan for the nine months ended September 30, 2021 and 2020, respectively.