Stockholder's Equity | Stockholder's Equity (a) Stock Equity and Incentive Plan The Company recognizes stock-based compensation in accordance with the provisions of ASC Topic 718, Compensation-Stock Compensation . On June 10, 2020, at the Company's 2020 Annual Meeting of Stockholders, the stockholders of the Company approved an amendment and restatement of the Company’s current equity compensation plan to increase the number of shares of common stock reserved for issuance under the plan by 1,800 shares, from 3,000 shares to 4,800 shares (excluding rollover shares). Stock-based compensation expense, excluding compensation charges related to our employee stock purchase plan, or the ESPP, was $899 and $1,093 for the three months ended September 30, 2020 and 2019, respectively, and $2,430 and $2,970 for the nine months ended September 30, 2020 and 2019, respectively. As of September 30, 2020, there was $3,864 of total unrecognized compensation expense related to stock options, which is expected to be recognized over a weighted-average period of 2.84 years. As of September 30, 2020, there was $4,418 of total unrecognized compensation expense related to restricted stock awards, which is expected to be recognized over a weighted-average period of 2.71 years. Stock Options During the three months ended September 30, 2020, no stock options were exercised for common stock. Additionally, during the three months ended September 30, 2020, 654 stock options were granted and 18 stock options expired, were canceled or were forfeited. During the nine months ended September 30, 2020, 6 stock options were exercised for common stock, $51 of which was delivered to the Company as payment for the exercise price and none of which were surrendered for minimum tax withholding obligations. Additionally, during the nine months ended September 30, 2020, 654 stock options were granted and 124 stock options expired, were canceled or were forfeited. The Company has estimated the fair value of each option grant on the date of grant using the Black-Scholes option-pricing model. The weighted average assumptions utilized to determine the fair value of options granted during the nine months ended September 30, 2020 and 2019 are as follows: Nine Months Ended September 30, 2020 2019 Risk-free interest rate 0.21 % 1.91 % Expected volatility 44.03 % 36.94 % Expected life (in years) 4.29 4.27 Dividend yield 0 % 0 % As of September 30, 2020, there were 2,148 options outstanding with a weighted average exercise price of $9.20 per share and 692 options exercisable with a weighted average exercise price of $9.51 per share. Restricted Stock During the three months ended September 30, 2020, 297 shares of restricted stock were granted with a weighted average grant date fair value of $8.13 per share and 7 shares of restricted stock were forfeited. Additionally, during the three months ended September 30, 2020, 14 shares of restricted stock vested, of which no shares of common stock were surrendered to the Company as payment by employees in lieu of cash to satisfy minimum tax withholding obligations in connection with the vesting of restricted stock. During the nine months ended September 30, 2020, 317 shares of restricted stock were granted with a weighted average grant date fair value of $8.19 per share and 7 shares of restricted stock were forfeited. Additionally, during the nine months ended September 30, 2020, 235 shares of restricted stock vested, of which no shares of common stock were surrendered to the Company as payment by employees in lieu of cash to satisfy minimum tax withholding obligations in connection with the vesting of restricted stock. As of September 30, 2020, there were 573 shares of restricted stock outstanding that were still subject to service-based vesting conditions. As of September 30, 2020, the Company had no unvested outstanding options and no outstanding shares of restricted stock that were subject to performance-based or market-based vesting conditions. (b) Employee Stock Purchase Plan The Company's Amended and Restated 1996 Employee Stock Purchase Plan (ESPP) affords eligible employees the right to purchase common stock, via payroll deductions, through various offering periods at a purchase price equal to 85% of the fair market value of the common stock on the first or last day of the offering period, whichever is lower. During the three and nine months ended September 30, 2020, 0 and 20 shares were issued under the ESPP plan, respectively. During the three and nine months ended September 30, 2019, 22 and 45 shares were issued under the ESPP plan, respectively. The Company recorded compensation charges related to the ESPP of $13 and $19 for the three months ended September 30, 2020 and 2019, respectively, and $29 and $49 for the nine months ended September 30, 2020 and 2019, respectively. (c) Stock-Based Compensation Expense The following table presents stock-based compensation expense, including under the ESPP, in the Company's consolidated statements of operations for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Cost of product sales $ 41 $ 69 $ 115 $ 171 Research and development 118 221 408 589 Sales, marketing and support 163 226 456 620 General and administrative 590 596 1,480 1,639 $ 912 $ 1,112 $ 2,459 $ 3,019 (d) Accumulated Other Comprehensive Loss (AOCI) Comprehensive income (loss) includes net income (loss), unrealized gains and losses from foreign currency translation, unrealized gains and losses from available for sale marketable securities and changes in fair value related to interest rate swap derivative instruments, net of tax attributes. The components of the Company’s comprehensive income (loss) and the effect on earnings for the periods presented are detailed in the accompanying consolidated statements of comprehensive income (loss). The balances for the three months ended September 30, 2020 and 2019 are as follows: Foreign Currency Translation Unrealized Loss on Available for Sale Marketable Securities Total Accumulated Other Comprehensive Loss Balance, June 30, 2020 $ (5,377) $ — $ (5,377) Other comprehensive income (loss) 1,103 (1) 1,102 Net other comprehensive income (loss) 1,103 (1) 1,102 Balance, September 30, 2020 $ (4,274) $ (1) $ (4,275) Foreign Currency Translation Total Accumulated Other Comprehensive Loss Balance, June 30, 2019 $ (3,489) $ (3,489) Other comprehensive loss (1,109) (1,109) Net other comprehensive loss (1,109) (1,109) Balance, September 30, 2019 $ (4,598) $ (4,598) The balances for the nine months ended September 30, 2020 and 2019 are as follows: Foreign Currency Translation Unrealized Loss on Available for Sale Marketable Securities Total Accumulated Other Comprehensive Loss Balance, December 31, 2019 $ (2,767) $ — $ (2,767) Other comprehensive loss (1,507) (1) (1,508) Net other comprehensive loss (1,507) (1) (1,508) Balance, September 30, 2020 $ (4,274) $ (1) $ (4,275) Foreign Currency Translation Interest Rate Swaps Total Accumulated Other Comprehensive Loss Balance, December 31, 2018 $ (14,720) $ (11) $ (14,731) Other comprehensive (loss) income before reclassifications (1,361) 3 (1,358) Amounts reclassified from AOCI 11,483 8 11,491 Net other comprehensive income 10,122 11 10,133 Balance, September 30, 2019 $ (4,598) $ — $ (4,598) For additional information, see Note 4, "Marketable Securities," and Note 17, "Derivative Instruments and Hedging Activities." |