Quarterly report pursuant to Section 13 or 15(d)

Equity Incentive Plans

v3.22.2.2
Equity Incentive Plans
9 Months Ended
Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Equity Incentive Plans

Note 12. Equity Incentive Plans

Stock options:

A summary of option activities under the 2005 Stock Plan, as amended in January 2010 and November 2012 (the "2005 Plan") and 2017 Equity Incentive Plan (the “2017 Plan") during the nine months ended September 30, 2022 is as follows:

 

 

 

Number
of Options
Outstanding

 

 

Weighted
Average
Exercise
Price

 

Outstanding as of December 31, 2021

 

 

783,928

 

 

$

28.00

 

Granted

 

 

530,122

 

 

$

27.01

 

Exercised

 

 

(22,689

)

 

$

10.16

 

Canceled

 

 

(33,190

)

 

$

34.02

 

Outstanding as of September 30, 2022

 

 

1,258,171

 

 

$

27.73

 

Under an “evergreen” provision, the number of shares of common stock reserved for issuance under the 2017 Plan will automatically increase on January 1 of each year, beginning on January 1, 2018 and ending on and including January 1, 2027, by 5% of the total number of shares of the Company's capital stock outstanding on December 31 of the preceding calendar year or a lesser number of shares determined by the Board. In accordance with the evergreen provision, the number of shares of common stock reserved for issuance under the 2017 Plan was increased on January 1, 2022 by 585,172 shares, which was equal to 5% of the total number of shares of common stock outstanding on December 31, 2021.

Restricted stock units:

A summary of restricted stock unit ("RSU") activities under the 2017 Plan during the nine months ended September 30, 2022 is as follows:

 

 

 

Number of Restricted Stock Units

 

 

Weighted
Average
Grant Date Fair Value per RSU

 

Unvested awards outstanding as of December 31, 2021

 

 

128,810

 

 

$

35.09

 

Granted

 

 

198,192

 

 

$

26.58

 

Vested

 

 

(87,460

)

 

$

31.83

 

Canceled

 

 

(2,830

)

 

$

26.50

 

Unvested awards outstanding as of September 30, 2022

 

 

236,712

 

 

$

29.27

 

 

During the three and nine months ended September 30, 2022, the Company modified RSUs to accelerate vesting for two individuals in respect of 5,849 RSUs and cancelled the award of another individual in respect of 1,887 RSUs. The Company accounted for these as modifications of those awards and recognized net incremental compensation expense of $0.01 million.

The incremental compensation cost is measured as the excess of the fair value of the modified award over the fair value of the original award immediately before its terms were modified and recognized as compensation expense on the date of modification for vested awards.

2017 Employee Stock Purchase Plan

There were 20,630 shares issued under the 2017 Employee Stock Purchase Plan ("2017 ESPP") during nine months ended September 30, 2022. No shares were issued during the three months ended September 30, 2022. The 2017 ESPP contains an “evergreen” provision that provides for an automatic annual share increase on January 1 of each year, in an amount equal to the lesser of (1) 2% of the total number of shares of common stock outstanding on December 31st of the preceding calendar year, (2) 150,000 shares or (3) such number of shares as determined by the Board. In accordance with the evergreen provision, the number of shares of common stock reserved for issuance under the 2017 ESPP was increased on January 1, 2022 by 150,000 shares. The number of shares available for grant under the 2017 ESPP was 528,698 as of September 30, 2022.

Total stock-based compensation expense associated with the 2005 Plan, 2017 Plan and 2017 ESPP is recorded in the condensed consolidated statements of operations and was allocated as follows (in thousands):

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Cost of revenues

 

$

499

 

 

$

372

 

 

$

1,482

 

 

$

1,179

 

Sales and marketing

 

 

427

 

 

 

399

 

 

 

1,336

 

 

 

1,182

 

Research and development

 

 

305

 

 

 

181

 

 

 

823

 

 

 

543

 

General and administrative

 

 

926

 

 

 

501

 

 

 

2,504

 

 

 

1,418

 

Total

 

$

2,157

 

 

$

1,453

 

 

$

6,145

 

 

$

4,322