Quarterly report pursuant to Section 13 or 15(d)

Stock-based Compensation

v3.8.0.1
Stock-based Compensation
 9 Months Ended
Sep. 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 stockholders 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 is 4,714, of which 534 are available for future grant as of September 30, 2017.
 
Stock Options
 
The following table summarizes information about the Company’s stock options outstanding at September 30, 2017, and activity during the nine months 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
 
 
835
 
$
2.00
 
 
 
 
 
 
 
Options exercised
 
 
(73)
 
$
0.58
 
 
 
 
 
 
 
Options forfeited
 
 
(162)
 
$
6.79
 
 
 
 
 
 
 
Options cancelled
 
 
(105)
 
$
6.63
 
 
 
 
 
 
 
Balance as of September 30, 2017
 
 
2,972
 
$
5.36
 
 
7.57
 
$
33
 
Vested and expected to vest at September 30, 2017
 
 
2,972
 
$
5.36
 
 
7.57
 
$
33
 
Exercisable as of September 30, 2017
 
 
1,515
 
$
6.35
 
 
5.99
 
$
30
 
 
As of September 30, 2017, total unrecognized compensation cost related to unvested stock options was $3,647. 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 2.35 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 September 30,
 
 
Nine months ended September 30,
 
 
 
2017
 
 
2016
 
 
2017
 
 
2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividend yield
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Risk-free interest rate
 
 
1.83% - 1.94
%
 
 
1.25% - 1.26
%
 
 
1.83% - 2.29
%
 
 
1.24% - 1.78
%
Expected term (in years)
 
 
5-6
 
 
 
6
 
 
 
5 - 9
 
 
 
5-10
 
Volatility
 
 
87
%
 
 
80
%
 
 
82
%
 
 
79
%
 
Restricted Stock Units
 
Beginning in 2017, the Company issued restricted stock units (“RSUs”), to employees and non-employees as permitted by the 2014 Plan. Each restricted stock unit corresponds to one share of the Company’s common stock and becomes issuable upon vesting. The fair value of restricted stock units is determined based on the closing price of the Company’s common stock on the date of grant.
 
In April 2017, the Company granted a total of 153 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 RSUs to terminated employees, 115 of which vested in September 2017. The remaining RSUs are scheduled to vest in January 2018.
 
In August 2017, the Company granted a total of 451 RSUs to continuing employees, which will fully vest on March 31, 2018.
 
RSU activity for the nine months ended September 30, 2017 is summarized below:
 
 
 
 
 
Weighted-
 
 
 
 
 
Average Grant
 
 
 
Number of Shares
 
Date Fair Value
 
Unvested as of January 1, 2017
 
 
-
 
 
 
 
Granted
 
 
724
 
$
1.64
 
Vested
 
 
115
 
$
1.59
 
Forfeited
 
 
-
 
 
 
 
Unvested at September 30, 2017
 
 
609
 
 
 
 
 
Compensation Expense
 
Total stock-based compensation expense related to options and RSUs granted to employees and non-employees is included in the condensed consolidated statements of operations and comprehensive loss as follows:
 
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
 
 
2017
 
2016
 
2017
 
2016
 
Sales and marketing
 
$
187
 
$
103
 
$
365
 
$
541
 
Research and development
 
 
103
 
 
127
 
 
287
 
 
499
 
General and administrative
 
 
360
 
 
221
 
 
917
 
 
1,512
 
Restructuring charges
 
 
-
 
 
-
 
 
186
 
 
-
 
 
 
$
650
 
$
451
 
$
1,755
 
$
2,552
 
 
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, 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. 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 trading day of the offering period. As of September 30, 2017, enrollment in the plan had not commenced.
 
401(k) Plan Share Match
 
In August 2017, the Company’s Board of Directors approved a match benefit to the Ekso Bionics 401(k) plan (the “401(k) Plan”) in the form of shares of the Company’s common stock. The Company will make a matching contribution to the 401(k) Plan in an amount equal to 100% of each eligible employee’s elected deferral (up to the statutory limit) for the year ending December 31, 2017 and equal to 50% of each employee’s elected deferral for each year thereafter.