Quarterly report pursuant to Section 13 or 15(d)

Stock-based Compensation

v3.10.0.1
Stock-based Compensation
 9 Months Ended
Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-based Compensation
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 September 30, 2018, the total shares authorized for grant under the 2014 Plan was 9,114, of which 1,837 were available for future grants.
 
Stock Options
 
The following table summarizes information about the Company’s stock options outstanding as of September 30, 2018, and activity during the nine months then ended:
 
Stock
Awards
 
Weighted-
Average
Exercise Price
 
Weighted-
Average
Remaining
Contractual
Life (Years)
 
Aggregate
Intrinsic
Value
Balance as of December 31, 2017
3,156

 
$
4.96

 
 
 
 
Options granted
3,295

 
$
1.90

 
 
 
 
Options exercised
(1
)
 
1.13

 
 
 
 
Options forfeited
(427
)
 
$
4.68

 
 
 
 
Options cancelled
(135
)
 
$
8.07

 
 
 
 
Balance as of September 30, 2018
5,888

 
$
3.20

 
8.36
 
$
2,358

Vested and expected to vest at September 30, 2018
5,888

 
$
3.20

 
8.36
 
$
2,358

Exercisable as of September 30, 2018
2,065

 
$
5.45

 
5.98
 
$
308


 
As of September 30, 2018, total unrecognized compensation cost related to unvested stock options was $5,569. 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 3.3 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,
 
2018
 
2017
 
2018
 
2017
Dividend yield
—

 
—

 
—

 
—

Risk-free interest rate
2.75%-2.99%

 
1.83%-1.94%

 
2.70% - 2.99%

 
1.83%-2.29%

Expected term (in years)
5-6

 
5-6

 
5-10

 
5-9

Volatility
106
%
 
87
%
 
104
%
 
82
%

 
Restricted Stock Units
 
Beginning in 2017, the Company issued restricted stock units (“RSUs”) to employees and non-employee service providers 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 September 30, 2018 is summarized below:
 
Number of
Shares
 
Weighted-
Average Grant
Date Fair Value
Unvested as of December 31, 2017
617

 
$
1.65

Granted
354

 
$
1.78

Vested
(584
)
 
$
1.45

Forfeited
(94
)
 
$
2.78

Unvested at September 30, 2018
293

 
$
1.82


 
As of September 30, 2018, $475 of total unrecognized compensation expense related to unvested RSUs was expected to be recognized over a weighted average period of 3.68 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 September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Sales and marketing
$
171

 
$
187

 
$
446

 
$
365

Research and development
87

 
103

 
312

 
287

General and administrative
680

 
360

 
1,474

 
917

Restructuring charges
—

 
—

 
—

 
186

 
$
938

 
$
650

 
$
2,232

 
$
1,755


 
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 made 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 will make a matching contribution equal to 50% of each employee’s elected deferral for each year thereafter.
 
During the nine months ended September 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.