Ekso Bionics Holdings, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Stock-based Compensation

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