Quarterly report pursuant to Section 13 or 15(d)

STOCK-BASED COMPENSATION

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STOCK-BASED COMPENSATION
6 Months Ended
Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION

 

10. STOCK-BASED COMPENSATION

 

Historically, stock options have been granted with an exercise price equal to the market value of the common stock on the date of grant, with expiration 10 years from the date they are granted, and generally vest over a one to three-year period for employees and members of the Board. Upon exercise, new shares will be issued by the Company. The restricted shares and restricted stock units (“RSUs”) granted to Board members and employees generally have a three-year graded vesting period and are subject to accelerated vesting and forfeiture under certain circumstances.

 

The following table provides the weighted average assumptions used in determining the fair value of the stock option awards granted during the six-month periods ended June 30, 2022 and 2021.

  

    June 30, 2022     June 30, 2021  
    (unaudited)  
Risk-free interest rate     1.76 %     0.78 %
Expected life     6.0 years       6.0 years  
Expected volatility     129.93 %     134.79 %
Dividend yield     -       -  

 

During March 2021, the Company granted 312,500 stock options with an exercise price of $6.00 and 152,500 RSUs. The market value of the Company’s common stock was $5.00 at the grant date of these awards. The Company recognized approximately $0.3 million and $0.6 million of stock-based compensation expense during the three-month periods ended June 30, 2022 and 2021, respectively and approximately $0.7 million and $0.8 million of stock-based compensation expense during the six-month periods ended June 30, 2022 and 2021, respectively. The following table has a breakout of stock-based compensation expense by line item.

 

    Three Months Ended     Six Months Ended  
    June 30     June 30  
    2022     2021     2022     2021  
    (unaudited)     (unaudited)  
Cost of revenue   $ 20     $ 52     $ 47     $ 102  
Sales and marketing     42       78       86       125  
Research and development     -       24       -       59  
General and administrative*     272       397       526       551  
Total stock compensation expense   $ 334     $ 551     $ 659     $ 837  

 

* Includes ESPP expense