Quarterly report pursuant to Section 13 or 15(d) 03-31-2016

Stock-Based Compensation

v3.4.0.3
Stock-Based Compensation
3 Months Ended
Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation

9. Stock-Based Compensation

 

Option and Equity Plans

 

In January 2016, the aggregate number of shares issuable under the 2012 Employee, Director and Consultant Equity Incentive Plan (the “2012 Plan”) was increased by 37,879 to 342,425, in accordance with the 2012 plan.

 

The total number of shares available for grant under the 2012 Plan at March 31, 2016 was 121,248.

 

Stock Options

 

A summary of the Company’s stock option activity for the three months ended March 31, 2016 was as follows:

 

    Options     Weighted-Average
Exercise Price
 
Outstanding at December 31, 2015     112,373     $ 41.53  
Granted     23,004     $ 1.69  
Expired     13,702     $ 24.17  
Outstanding at March 31, 2016     121,675     $ 35.95  
Exercisable at March 31, 2016     74,859     $ 60.65  
Vested and expected to vest at March 31, 2016     119,112     $ 36.50  

 

The Company estimates the fair value of each stock option on the grant date using the Black-Scholes-Merton valuation model, which requires several estimates including an estimate of the fair value of the underlying common stock on grant date. The expected volatility was based on an average of the historical volatility of a peer group of similar companies. The expected term was calculated utilizing the simplified method. The risk-free interest rate was based on the U.S. Treasury yield curve in effect at the time of grant for the expected term of the option. The following weighted average assumptions were used in the calculation to estimate the fair value of options granted to employees during the three months ended March 31, 2016 and 2015:

 

    Three Months Ended March 31,  
    2016     2015  
Weighted-average risk-free interest rate     1.86%       1.62%  
Weighted-average expected life (in years)     6.3       6.3  
Expected dividend yield     0%       0%  
Weighted-average expected volatility     65%       46%  

 

Summary of Stock-Based Compensation Expense

 

Total stock-based compensation expense included in the condensed consolidated statements of operations and comprehensive loss was allocated as follows (in thousands):

 

    Three Months Ended March 31,  
    2016     2015  
Cost of revenue   $ 4     $ 29  
Research and development     29       122  
General and administrative     40       328  
Selling and marketing     15       142  
Capitalized into inventory     2       39  
Total stock-based compensation expense   $ 90     $ 660  

 

Unrecognized stock-based compensation at March 31, 2016 was as follows (in thousands):

 

    Unrecognized Stock-Based Compensation     Weighted Average Remaining Period of Recognition (in years)  
Stock options   $ 435       1.7