Quarterly report pursuant to Section 13 or 15(d)

Share-Based Compensation

v3.19.2
Share-Based Compensation
6 Months Ended
Jun. 30, 2019
Share-based Payment Arrangement [Abstract]  
Share-Based Compensation Share-Based Compensation
As of June 30, 2019, the Company has two active share-based compensation plans, the 2018 Equity Incentive Plan and the 2011 Employee Stock Purchase Plan.
In January 2019, the Company granted market stock unit (“MSU”) awards to certain employees. These MSUs fully vest on December 31, 2021 and have separate market performance goals than the performance stock unit (“PSU”) awards the Company grants. Each MSU represents the right to one share of common stock. The actual number of MSUs which will be eligible to vest will be based on the performance of Natus' stock price over the vesting period. The maximum number of MSUs which will be eligible to vest are 200% of the MSUs initially granted. A Monte Carlo simulation model was used to estimate the fair value of the MSUs as of their grant date. This model simulates the stock price movements of the Company using certain assumptions, including the stock price of the company.
The terms of all other awards granted during the six months ended June 30, 2019 and the methods for determining grant-date fair value of the awards are consistent with those described in the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018.
Details of share-based compensation expense are as follows (in thousands):
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
 
2019
 
2018
 
2019
 
2018
Cost of revenue
$
89

 
$
71

 
$
156

 
$
139

Marketing and selling
209

 
199

 
439

 
396

Research and development
258

 
272

 
503

 
549

General and administrative
1,431

 
2,728

 
3,321

 
4,548

Total
$
1,987

 
$
3,270

 
$
4,419

 
$
5,632


As of June 30, 2019, unrecognized compensation expense related to the unvested portion of stock options and other stock awards was approximately $13.5 million, which is expected to be recognized over a weighted average period of 2.5 years.