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, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments

12.	Stock-based Compensation

In June 2018, the Company’s stockholders ratified an amendment to the Company’s Amended and Restated 2014 Equity Incentive Plan (the “2014 Plan”), which was first approved by the stockholders in December 2017, to increase the number of shares available for grant by 4,400 shares. As of June 30, 2018, the total shares authorized for grant under the 2014 Plan was 9,114, of which 5,093 were available for future grants.

Stock Options

The following table summarizes information about the Company’s stock options outstanding at June 30, 2018, and activity during the six months then ended:

						Weighted-
						Average
				Weighted-		Remaining		Aggregate
	Stock			Average		Contractual		Intrinsic
	Awards			Exercise Price		Life (Years)		Value
Balance as of December 31, 2017		3,156		$	4.96
Options granted		221		$	1.83
Options exercised		-		$	-
Options forfeited		(365	)	$	4.93
Options cancelled		(96	)	$	8.65
Balance as of June 30, 2018		2,916		$	4.60		7.06	$	430
Vested and expected to vest at June 30, 2018		2,916		$	4.60		7.06	$	430
Exercisable as of June 30, 2018		1,897		$	5.78		5.98	$	84

As of June 30, 2018, total unrecognized compensation cost related to unvested stock options was $1,541. 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 2.39 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,
	2018			2017			2018			2017

Dividend yield		—			—			—			—
Risk-free interest rate		2.85	%		1.88	%		2.70% - 2.97	%		1.88% - 2.29%
Expected term (in years)		6-10			6			6 - 10			6 - 9
Volatility		89	%		77	%		89	%		77	%

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 represents the right to receive one share of the Company’s common stock upon vesting and subsequent settlement. 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.

RSU activity for the period ended June 30, 2018 is summarized below:

	Number of Shares			Weighted- Average Grant Date Fair Value
Unvested as of January 1, 2018		617		$	1.65
Granted		79		$	1.78
Vested		(548	)	$	1.40
Forfeited		(70	)	$	2.85
Unvested at June 30, 2018		78		$	2.40

As of June 30, 2018, $149 of total unrecognized compensation expense related to unvested RSUs was expected to be recognized over a weighted average period of 2.27 years.

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 June 30,				Six months ended June 30,
	2018		2017		2018		2017
Sales and marketing	$	166	$	158	$	275	$	178
Research and development		47		82		225		184
General and administrative		189		283		794		557
Restructuring charges		-		186		-		186
	$	402	$	709	$	1,294	$	1,105

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.

During the six months ended June 30, 2018, the Company issued 221 shares of common stock to the eligible employees’ deferral accounts for the 401(k) Plan matching contribution for the year ended December 31, 2017.