Quarterly report pursuant to Section 13 or 15(d)

Stock-based Compensation

v3.7.0.1
Stock-based Compensation
6 Months Ended
Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments
13.
Stock-based Compensation
 
In June 2017, the Company shareholders approved an amendment of the Company’s Amended and Restated 2014 Equity Incentive Plan (the “2014 Plan”) to increase the number of shares available for grant by 1,000 shares.  The total shares authorized for grant under the 2014 Plan was 4,714, of which  1,543 are available for future grant as of June 30, 2017.
 
Stock Options
 
The following table summarizes information about the Company’s stock options outstanding at June 30, 2017, and activity during the six-month period then ended:
 
 
 
 
 
 
 
Weighted-
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
Weighted-
 
Remaining
 
Aggregate
 
 
 
Stock
 
Average
 
Contractual
 
Intrinsic
 
 
 
Awards
 
Exercise Price
 
Life (Years)
 
Value
 
Balance as of December 31, 2016
 
 
2,477
 
$
6.50
 
 
 
 
 
 
 
Options granted
 
 
266
 
$
2.98
 
 
 
 
 
 
 
Options exercised
 
 
(73)
 
$
0.58
 
 
 
 
 
 
 
Options forfeited
 
 
(105)
 
$
7.69
 
 
 
 
 
 
 
Options cancelled
 
 
(28)
 
$
8.12
 
 
 
 
 
 
 
Balance as of June 30, 2017
 
 
2,537
 
$
6.23
 
 
7.24
 
$
75
 
Vested and expected to vest at June 30, 2017
 
 
2,537
 
$
6.23
 
 
7.24
 
$
75
 
Exercisable as of June 30, 2017
 
 
1,424
 
$
6.44
 
 
5.99
 
$
75
 
 
As of June 30, 2017, total unrecognized compensation cost related to unvested stock options was $3,734. 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 June 30,
 
 
Six months ended June 30,
 
 
 
2017
 
 
2016
 
 
2017
 
 
2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividend yield
 
 
 
 
 
 
 
 
 
 
 
 
Risk-free interest rate
 
 
1.88
%
 
 
1.28% - 1.43%
 
 
 
1.88% - 2.29%
 
 
 
1.24% - 1.78%
 
Expected term (in years)
 
 
6
 
 
 
5-6
 
 
 
6 - 9
 
 
 
5-10
 
Volatility
 
 
77
%
 
 
78
%
 
 
77
%
 
 
78
%
 
Restricted Stock Units
 
In April 2017, the Company granted a total of 153 restricted stock units (“RSUs”) to certain executive officers, which vest over four years, with 25% becoming exercisable on each yearly anniversary of the date of grant.
 
In May 2017, the Company granted a total of 120 restricted stock units to terminated employees, which will vest in September 2017. The valuation of RSUs was determined at the date of grant using the closing stock price.
 
RSU activity for the six months ended June 30, 2017 is summarized below:
 
 
 
Number of Shares
 
Weighted- Average Grant Date Fair Value
 
Unvested as of January 1, 2017
 
 
-
 
 
 
 
Granted
 
 
273
 
$
2.30
 
Vested
 
 
-
 
 
 
 
Forfeited
 
 
-
 
 
 
 
Unvested at June 30, 2017
 
 
273
 
 
 
 
 
Employee Stock Purchase Plan
 
In June 2017, the Company’s stockholders approved the Employee Stock Purchase Plan (the “2017 ESPP”). Under the 2017 ESPP, the Company reserved 500 shares of common stock for issuance as of its effective date of April 26, 2017, subject to adjustment in the event of a stock split, stock dividend, combination or reclassification or similar event. The 2017 ESPP allows eligible employees to purchase shares of the Company’s common stock at a discount through payroll deductions of up to 25% of their eligible compensation, subject to any plan limitations. The 2017 ESPP provides for six-month offering periods ending on June 30 and December 31 of each year. At the end of each offering period, employees can purchase shares at 85% of the lower of the fair market value of the Company’s common stock on the first trading day of the offering period or on the last day of the offering period.
 
Compensation Expense
 
Total stock-based compensation expense related to options granted to employees and non-employees is included in the condensed consolidated statements of operations and comprehensive loss as follows:
 
 
 
Three months ended June 30,
 
Six months ended June 30,
 
 
 
2017
 
2016
 
2017
 
2016
 
Sales and marketing
 
$
158
 
$
206
 
$
178
 
$
438
 
Research and development
 
 
82
 
 
141
 
 
184
 
 
372
 
General and administrative
 
 
283
 
 
180
 
 
557
 
 
1,291
 
Restructuring Charges
 
 
186
 
 
-
 
 
186
 
 
-
 
 
 
$
709
 
$
527
 
$
1,105
 
$
2,101