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

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

See Note 12, Capitalization and Equity Structure – Reverse Stock Split.

In March 2020, 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 333 shares. As of June 30, 2020, the total shares authorized for grant under the 2014 Plan was 1,174, of which 321 were available for future grants.

Stock Options

The following table summarizes information about the Company’s stock options outstanding as of June 30, 2020, and activity during the six months then ended:


	Stock Awards	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Balance as of December 31, 2019	494	$	36.64
Options granted	90	5.65
Options exercised	—	—
Options forfeited	(24)	26.49
Options cancelled	(5)	53.09
Balance as of June 30, 2020	555	$	31.90	7.81	$	246
Vested and expected to vest at June 30, 2020	555	$	31.90	7.81	$	246
Exercisable as of June 30, 2020	311	$	44.31	6.92	$	126

As of June 30, 2020, total unrecognized compensation cost related to unvested stock options was $2,989. This amount is expected to be recognized as stock-based compensation expense in the Company’s condensed consolidated statements of operations and comprehensive loss over the remaining weighted average vesting period of 2.4 years.

The per-share fair value of each stock option was determined on the date of grant using the Black-Scholes Model using the following assumptions:


	Three Months Ended June 30,					Six Months Ended June 30,
	2020	2019		2020		2019
Dividend yield	—	—		—		—
Risk-free interest rate	N/A⁽¹⁾	2.09	%	1.58	%	2.12	%
Expected term (in years)	N/A⁽¹⁾	6		5.6		6
Volatility	N/A⁽¹⁾	102	%	102	%	102	%

⁽¹⁾Black-Scholes option pricing model assumptions are not applicable for the three months ended June 30, 2020, 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 six months ended June 30, 2020 is summarized below:


	Number of Shares	Weighted- Average Grant Date Fair Value
Unvested as of December 31, 2019	89	$	10.77
Granted	98	3.43
Vested	(12)	5.74
Forfeited	(28)	11.03
Unvested at June 30, 2020	147	$	6.20

As of June 30, 2020, $752 of total unrecognized compensation expense related to unvested RSUs was expected to be recognized over a weighted average period of 3.07 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 June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Sales and marketing	$	98	$	156	$	236	$	379
Research and development	40		73		113		118
General and administrative	370		328		746		696
	$	508	$	557	$	1,095	$	1,193

401(k) Plan Share Match

During the six months ended June 30, 2020, the Company issued 26 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, 2019. The expense related to the contribution was $155 for the six months ended June 30, 2020.