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

9 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

In June 2019, the Company’s stockholders approved an amendment to the Company’s Amended and Restated 2014 Equity Incentive Plan (the “2014 Plan”), to increase the number of shares available for grant by 3,500 shares. As of September 30, 2019, the total shares authorized for grant under the 2014 Plan was 12,614, of which 4,431 were available for future grants.

Stock Options

The following table summarizes information about the Company’s stock options outstanding as of September 30, 2019, 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, 2018	6,466		$	3.05
Options granted	674		1.45
Options exercised	(186	)	1.23
Options forfeited	(774	)	2.03
Options cancelled	(230	)	4.41
Balance as of September 30, 2019	5,950		$	3.00	7.45	$	1
Vested and expected to vest at September 30, 2019	5,950		$	3.00	7.45	$	1
Exercisable as of September 30, 2019	3,158		$	4.03	6.07	$	1

As of September 30, 2019, total unrecognized compensation cost related to unvested stock options was $3,885. 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 2.65 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,
	2019	2018		2019		2018
Dividend yield	N/A ⁽¹⁾	—		—		—
Risk-free interest rate	N/A ⁽¹⁾	2.75%-2.99%		2.12	%	2.70%-2.99%
Expected term (in years)	N/A ⁽¹⁾	5-6		6		5-10
Volatility	N/A ⁽¹⁾	106	%	102	%	104	%

⁽¹⁾ Black-Scholes option pricing model assumptions are not applicable for the three months ended September 30, 2019, as there were no stock options granted during this period.

Restricted Stock Units

The Company issues restricted stock units (“RSUs”) to employees and non-employee service providers. 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 nine months ended September 30, 2019 is summarized below:



	Number of Shares		Weighted- Average Grant Date Fair Value
Unvested as of December 31, 2018	278		$	1.83
Granted	560		1.64
Vested	(622	)	1.66
Forfeited	(79	)	1.96
Unvested at September 30, 2019	137		$	1.76

As of September 30, 2019, $224 of total unrecognized compensation expense related to unvested RSUs was expected to be recognized over a weighted average period of 2.79 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 income (loss) as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Sales and marketing	$	137	$	171	$	516	$	446
Research and development	57		87		175		312
General and administrative	293		680		989		1,474
	$	487	$	938	$	1,680	$	2,232

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 nine months ended September 30, 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 fiscal year ended December 31, 2018.