Note 9 - Share-based Compensation

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

 

(

9

)    Share-Based Compensation              

The share-based compensation expense is recorded in cost of goods sold, research and development, and selling, general and administrative expenses based on the employee's or non-employee’s respective function.

No

share-based compensation was capitalized during the periods presented. Share-based compensation expense for the

three

months ended

March 31, 2020

and

2019

was recorded as follows (in thousands):

	Three months ended March 31,
	2020		2019
Cost of goods sold	$	—	$	46
Research and development		413		242
Selling, general and administrative		528		402
Total share-based compensation expense	$	941	$	690

On

January 29, 2020 (

the “repricing date”), the Company’s Board of Directors repriced certain previously granted and still outstanding vested and unvested stock option awards held by employees, executives and certain service providers of the Company; as a result, the exercise price was lowered to

$5.32

per share.

No

other terms of the repriced stock options were modified, and the repriced stock options will continue to vest according to their original vesting schedules and will retain their original expiration dates. As a result of the repricing,

515,036

vested and unvested stock options outstanding with original exercise prices ranging from

$10.05

to

$97.21,

were repriced.

The repricing resulted in incremental stock-based compensation expense of

$569,000,

of which

$412,000

related to vested employee stock option awards and was expensed on the repricing date, and

$157,000

related to unvested stock option awards and is being amortized on a straight-line basis over the approximately

three

year remaining weighted average vesting period of those awards.

The following table summarizes the activity of stock options and related information:

	Options outstanding
	Number of shares			Weighted average exercise price		Weighted average remaining contractual term (years)
Balance, December 31, 2019		821,464		$	18.99		6.6
Stock options granted		31,455			5.33
Stock options exercised		—			—
Stock options canceled		(16,947	)		16.32
Balance, March 31, 2020		835,972		$	7.20		7.4
Exercisable and vested, March 31, 2020		472,113		$	8.63		6.4

Unrecognized share-based compensation for employee and nonemployee options granted through

March 31, 2020

is approximately

$3.0

million to be recognized over a remaining weighted average service period of

2.1

years.

Share-Based Compensation (RSUs)

The following summarizes the activity of non-vested RSUs:  

	Number of shares			Weighted average grant date fair value per share
Balance, December 31, 2019		36,981		$	10.56
RSUs granted		—			—
RSUs vested		(23,172	)		10.56
RSUs forfeited		(13,809	)		—
Balance, March 31, 2020		—		$	—