• Filing Date: 2019-08-14
  • Form Type: 10-Q
  • Description: Quarterly report
v3.19.2
SHARE-BASED COMPENSATION
3 Months Ended
Jun. 30, 2019
Share-based Payment Arrangement [Abstract]  
SHARE-BASED COMPENSATION

Note 5. SHARE-BASED COMPENSATION

 

The provisions of ASC 718-10-55 requires the measurement and recognition of compensation expense for all share-based payment awards made to our employees and directors, including employee stock options and RSUs, based on estimated fair values. The following table summarizes stock-based compensation expense related to employee stock options, RSUs and employee stock purchases for the three months ended June 30, 2019 and 2018, which was allocated as follows:

 

   Three Months Ended
   June 30, 2019  June 30, 2018
Cost of sales  $681   $601 
Sales and marketing   790    1,296 
General and administrative   5,622    9,592 
Research and development   609    604 
Stock-based compensation expense  $7,702   $12,093 

 

Share-based compensation cost for stock options is measured at the grant date, based on the fair value as calculated by the Black-Scholes-Merton ("BSM") option-pricing model. The BSM option-pricing model requires the use of actual employee exercise behavior data and the application of a number of assumptions, including expected volatility, risk-free interest rate and expected dividends. There were 40,000 stock options granted and 50,000 stock options forfeited during the three months ended June 30, 2019. Share-based compensation cost for RSUs is measured based on the closing fair market value of the Company's common stock on the date of grant.

 

As of June 30, 2019, $131,000 of total unrecognized compensation costs related to nonvested stock options is expected to be recognized over a period of five years.