Quarterly report pursuant to Section 13 or 15(d)

Stock-based Compensation

v3.7.0.1
Stock-based Compensation
 3 Months Ended
Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments
12. Stock-based Compensation
 
The Company’s Amended and Restated 2014 Equity Incentive Plan (the “2014 Plan”) allows for the issuance of an aggregate of 3,714 shares of common stock, of which 952 are available for future grant as of March 31, 2017.
 
The following table summarizes information about the Company’s stock options outstanding at March 31, 2017, and activity during the three month period then ended:
 
 
 
 
 
 
 
Weighted-
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
Remaining
 
 
 
 
 
Stock
 
Weighted-
Average
 
Contractual
Life
 
Aggregat
Ientrinsic
 
 
 
Awards
 
Exercise Price
 
(Years)
 
Value
 
Balance as of December 31, 2016
 
 
2,477
 
$
6.50
 
 
 
 
 
 
 
Options granted
 
 
56
 
$
3.47
 
 
 
 
 
 
 
Options exercised
 
 
(8)
 
$
3.05
 
 
 
 
 
 
 
Options forfeited
 
 
(40)
 
$
8.97
 
 
 
 
 
 
 
Options cancelled
 
 
(19)
 
$
7.63
 
 
 
 
 
 
 
Balance as of March 31, 2017
 
 
2,466
 
$
6.39
 
 
7.31
 
$
801
 
Vested and expected to vest at March 31, 2017
 
 
2,466
 
 
 
 
 
7.31
 
$
801
 
Exercisable as of  March 31, 2017
 
 
1,352
 
 
 
 
 
6.06
 
$
723
 
 
As of March 31, 2017, total unrecognized compensation cost related to unvested stock options was $4,162. This amount is expected to be recognized as stock-based compensation expense in the Company’s condensed consolidated statements of operations and comprehensive income over the remaining weighted average vesting period of 2.5 years.
 
The per-share fair value of each stock option was determined on the date of grant using the Black-Scholes option pricing model using the following assumptions:
 
 
 
Three months ended March 31,
 
 
 
2017
 
2016
 
 
 
 
 
 
 
Dividend yield
 
—
 
—
 
Risk-free interest rate
 
2.05% - 2.40%
 
1.24% - 1.78%
 
Expected term (in years)
 
6-10
 
5-10
 
Volatility
 
80% - 82%
 
77%
 
 
Total stock-based compensation expense related to options granted to employees and non-employees was included in the condensed consolidated statements of operations and comprehensive loss as follows:
 
 
 
Three months ended March 31,
 
 
 
2017
 
2016
 
Sales and marketing
 
$
20
 
$
232
 
Research and development
 
 
101
 
 
231
 
General and administrative
 
 
273
 
 
1,111
 
 
 
$
394
 
$
1,574
 
 
In connection with the resignation of the Company’s then Chief Executive Officer in February 2016, the Company accelerated the vesting of options that would have vested in the subsequent twelve months and extended the exercise period of the resulting options from three months to six years. In addition, the Company extended the exercise period for an employee that was terminated in March 2016 from three months to one year. These modifications resulted in incremental stock-based compensation expense of $59 and $774 included in research and development and general and administrative, respectively, for the three months ended March 31, 2016 in the condensed consolidated statements of operations and comprehensive loss.
 
In June 2015 an employee of the Company received a performance based option grant representing a total of 99,999 shares of common stock. One of three tranches was to vest on March 31, 2017 if certain revenue targets were attained. As the target was not attained, $124 of previously recorded stock compensation expense was reversed as a credit in the Company’s condensed consolidated statement of operations and comprehensive loss under sales and marketing for the three month period ended March 31, 2017