12. Stock-based Compensation

 

 

On October 30, 2017, the Board approved an amendment to the 2014 Plan to increase the maximum number of shares of common stock that may be issued under the 2014 Plan by 4,400 shares, from 4,714 to 9,114 shares (the “2014 Plan Amendment”) effective as of the time such amendment is approved by the stockholders. At the December Special Meeting, a proposal was submitted to be voted on by the stockholders to approve the 2014 Plan Amendment contingent on the approval by the stockholders of the Authorized Capital Amendment. The proposal was approved by the stockholders at the December Special Meeting, with approximately 25,205 shares voted for, 2,955 shares voted against, and 356 shares abstaining. However, since the proposal was contingent on the approval by the stockholders of the Authorized Capital Amendment, management has solicited stockholders to ratify the 2014 Plan Amendment at the 2018 Annual Meeting. Further information is provided in the 2018 Proxy Statement.

As of March 31, 2018, there were 5,162 shares available for future awards after taking into account the 2014 Plan Amendment.

Stock Options

 

The following table summarizes information about the Company’s stock options outstanding at March 31, 2018, and activity during the three 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			38		$	1.83
Options exercised			-		$	-
Options forfeited			(289)		$	5.19
Options cancelled			(7)		$	4.45
Balance as of March 31, 2018			2,898		$	4.89			6.90		$	297
Vested and expected to vest at March 31, 2018			2,898		$	4.89			6.90		$	297
Exercisable as of March 31, 2018			1,851		$	6.10			5.66		$	50

 

 

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:

 

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 corresponds to one share of the Company’s common stock and becomes issuable upon vesting. 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 three months ended March 31, 2018 is summarized below:

		Number of Shares			Weighted- Average Grant Date Fair Value
Unvested as of January 1, 2018			617		$	1.65
Granted			35		$	1.73
Vested			(466)		$	1.32
Forfeited			(61)		$	2.85
Unvested at March 31, 2018			125		$	2.27

 

As of March 31, 2018, $159 of total unrecognized compensation expense related to unvested RSUs was expected to be recognized over a weighted average period of 2.96 years.

 

 

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,
		2018			2017
Sales and marketing		$	109		$	20
Research and development			179			101
General and administrative			604			273
		$	892		$	394

 

 

During the three months ended March 31, 2018, the Company issued 221 shares of common stock to each eligible employee’s deferral account for the 401(k) Plan matching contribution for the year ended December 31, 2017.