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

3 Months Ended

Mar. 31, 2019

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

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 March 31, 2019, the total shares authorized for grant under the 2014 Plan was 9,114, of which 1,580 were available for future grants.

Stock Options

The following table summarizes information about the Company’s stock options outstanding as of March 31, 2019, and activity during the three months then ended:



	Stock Awards		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Balance as of December 31, 2018	6,466		$	3.05
Options granted	65		$	2.23
Options exercised	(54	)	1.23
Options forfeited	(372	)	$	2.07
Options cancelled	—		$	—
Balance as of March 31, 2019	6,105		$	3.12	7.64	$	2,959
Vested and expected to vest at March 31, 2019	6,105		$	3.12	7.64	$	2,959
Exercisable as of March 31, 2019	2,602		$	4.64	5.59	$	823

As of March 31, 2019, total unrecognized compensation cost related to unvested stock options was $4,856. 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 2.85 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 March 31,
	2019		2018
Dividend yield	—		—
Risk-free interest rate	2.45	%	2.74	%
Expected term (in years)	6		10
Volatility	103	%	88	%

Restricted Stock Units

The Company issues restricted stock units (“RSUs”) to employees and non-employee service providers as permitted by the 2014 Plan. Each RSU represents the right to receive one share of the Company’s common stock upon vesting and subsequent settlement. The fair value of RSUs is determined based on the closing price of the Company’s common stock on the date of grant.

RSU activity for the period ended March 31, 2019 is summarized below:



	Number of Shares		Weighted- Average Grant Date Fair Value
Unvested as of December 31, 2018	278		$	1.83
Granted	—		$	—
Vested	—		$	—
Forfeited	(13	)	$	2.50
Unvested at March 31, 2019	265		$	1.79

As of March 31, 2019, $387 of total unrecognized compensation expense related to unvested RSUs was expected to be recognized over a weighted average period of 3.24 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 March 31,
	2019		2018
Sales and marketing	$	223	$	109
Research and development	45		179
General and administrative	368		604
	$	636	$	892

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.

During the three months ended March 31, 2019, the Company issued 141 shares of common stock to eligible employees’ deferral accounts for the 401(k) Plan matching contribution representing 50% of each eligible employee’s elected deferral (up to the statutory limit) for the year ending December 31, 2018.