Quarterly report pursuant to Section 13 or 15(d)

Stock-based Compensation

v3.5.0.2
Stock-based Compensation
 9 Months Ended
Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-based Compensation
12. Stock-based Compensation
 
See Note 11, Capitalization and Equity Structure – Reverse Stock Split.
 
The Company’s Amended and Restated 2014 Equity Incentive Plan (the “2014 Plan”) allows for the issuance of an aggregate of 3,714 shares of common stock, of which 965 are available for future grant as of September 30, 2016.
 
The following table summarizes information about the Company’s stock options outstanding at September 30, 2016, and activity during the nine month period then ended:
 
 
 
 
 
 
 
 
 
Weighted-
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
Weighted-
 
Remaining
 
 
 
 
 
 
 
 
 
Average
 
Contractual
 
Aggregate
 
 
 
Stock Awards
 
Exercise Price
 
Life (Years)
 
Intrinsic Value
 
Balance as of December 31, 2015
 
 
1,963
 
$
7.09
 
 
 
 
 
 
 
Options granted
 
 
776
 
$
5.44
 
 
 
 
 
 
 
Options exercised
 
 
(30)
 
$
2.40
 
 
 
 
 
 
 
Options forfeited
 
 
(207)
 
$
8.11
 
 
 
 
 
 
 
Options cancelled
 
 
(28)
 
$
9.58
 
 
 
 
 
 
 
Balance as of September 30, 2016
 
 
2,474
 
$
6.51
 
 
7.66
 
$
1,322
 
Vested and expected to vest at September 30, 2016
 
 
2,294
 
 
 
 
 
7.53
 
$
1,279
 
Exercisable as of September 30, 2016
 
 
1,180
 
 
 
 
 
6.03
 
$
1,089
 
 
As of September 30, 2016, total unrecognized compensation cost related to unvested stock options was $5,360. 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 2.8 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,
 
 
 
2016
 
2015
 
2016
 
2015
 
Dividend yield
 
 
—
 
 
—
 
 
—
 
 
—
 
Risk-free interest rate
 
 
1.25% – 1.26%
 
 
1.68%
 
 
1.24% - 1.78%
 
 
1.41% - 2.50%
 
Expected term (in years)
 
 
6
 
 
6
 
 
5-10
 
 
6-10
 
Volatility
 
 
80%
 
 
75%
 
 
77-80%
 
 
73% - 75%
 
 
Total stock-based compensation expense related to options granted to employees and non-employees was included in the condensed consolidated statements of operations and comprehensive loss as follows:
 
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
 
 
2016
 
2015
 
2016
 
2015
 
Sales and marketing
 
$
103
 
$
147
 
$
541
 
$
440
 
Research and development
 
 
127
 
 
133
 
 
499
 
 
295
 
General and administrative
 
 
221
 
 
187
 
 
1,512
 
 
524
 
 
 
$
451
 
$
467
 
$
2,552
 
$
1,259
 
 
In connection with the resignation of the Company’s then Chief Executive Officer in February 2016, the Company accelerated the vesting of options that would have vested in the subsequent twelve months and extended the exercise period of the resulting options from three months to six years. In addition, the Company extended the exercise period for an employee that was terminated in March 2016 from three months to one year. These modifications resulted in incremental stock-based compensation expense of $59 and $774 included in research and development and general and administrative, respectively, for the nine months ended September 30, 2016 in the condensed consolidated statements of operations and comprehensive loss.