Quarterly report pursuant to Section 13 or 15(d)

7. SHARE-BASED COMPENSATION

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7. SHARE-BASED COMPENSATION
3 Months Ended
Mar. 31, 2022
Share-Based Payment Arrangement [Abstract]  
7. SHARE-BASED COMPENSATION

7. SHARE-BASED COMPENSATION

We issue share-based compensation to employees in the form of stock options, restricted stock units (RSUs), and performance stock units (PSUs). We account for the share-based awards by recognizing the fair value of share-based compensation expense on a straight-line basis over the service period of the award, net of estimated forfeitures. The fair value of stock options is estimated on the grant date using the Black-Scholes option pricing model. The fair value of RSUs and non-executive PSUs is determined by the closing price of our common stock on the grant date. Changes in estimated inputs or using other option valuation methods may result in materially different option values and share-based compensation expense.

 

The following table summarizes the amount of share-based compensation expense by line item on the statements of operations:

             
Share-based compensation expense     Three Months Ended
      March 31,
(in thousands)     2022     2021
Research and development expense   $                 1,833   $                 1,184
Sales, marketing, general and administrative expense                     1,901                     454
    $                 3,734   $                 1,638

 

 

Options activity and positions

The following table summarizes shares, weighted-average exercise price, weighted-average remaining contractual term and aggregate intrinsic value of options outstanding and options exercisable as of March 31, 2022:

              Weighted-      
          Weighted-   Average      
          Average   Remaining     Aggregate
Options         Exercise   Contractual     Intrinsic
    Shares     Price   Term (years)     Value
Outstanding as of March 31, 2022     1,338,000   $            1.38   6.0   $   4,476,000
                     
Exercisable as of March 31, 2022     1,013,000   $            1.58   5.6   $   3,197,000

 

 

As of March 31, 2022, our unrecognized share-based employee compensation related to stock options was $30,000 which we plan to expense over the next 0.3 years.

Restricted stock activity and positions

The following table summarizes activity and positions with respect to RSUs and PSUs for the three months ended March 31, 2022:

            Weighted-average
      Shares     price
Unvested as of December 31, 2021       2,625,000   $                      13.05
Granted           1,742,000                          4.07
Vested         (332,000)                          13.21
Forfeited           (10,000)                          6.60
Unvested as of March 31, 2022       4,025,000   $                      9.17

 

As of March 31, 2022, our unrecognized share-based compensation related to RSUs was $22.9 million which we plan to expense over the next 2.2 years and our unrecognized share-based compensation related to the non-executive PSUs was $6.8 million, which we plan to expense over the next 1.3 years.