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

9. Stock-Based Compensation

 

Option and Equity Plans

 

In May 2016, the stockholders of the Company approved a proposal to increase the number of shares of common stock available for issuance under the 2012 Employee, Director and Consultant Equity Incentive Plan (the “2012 Plan”) by 800,000 shares, from 342,425 to 1,142,425.

 

The total number of shares available for grant under the 2012 Plan at September 30, 2016 was 904,254.

 

Stock Options

 

A summary of the Company’s stock option activity for the nine months ended September 30, 2016 was as follows:

 

    Options     Weighted-Average
Exercise Price 		 
Outstanding at December 31, 2015     112,373     $ 41.53  
Granted     39,354     $ 1.37  
Expired     (13,702 )   $ 24.22  
Outstanding at September 30, 2016     138,025     $ 32.29  
Exercisable at September 30, 2016     94,069     $ 48.26  
Vested and expected to vest at September 30, 2016     136,889     $ 32.79  

 

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 nine months ended September 30, 2016 and 2015:

 

    Nine Months Ended September 30  
    2016     2015  
Weighted-average risk-free interest rate     1.63 %     1.64 %
Weighted-average expected life (in years)     6.3       6.3  
Expected dividend yield     0 %     0 %
Weighted-average expected volatility     65 %     48 %

 

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 September 30,     Nine Months Ended September 30,  
    2016     2015     2016     2015  
Cost of revenue   $ 6     $ 11     $ 13     $ 45  
Research and development     18       8       71       167  
General and administrative     20       46       95       405  
Selling and marketing     1       11       18       163  
Capitalized into inventory     11       20       14       66  
Total stock-based compensation expense   $ 56     $ 96     $ 211     $ 846  

 

Unrecognized stock-based compensation at September 30, 2016 was as follows (in thousands):

 

    Unrecognized Stock-
Based Compensation 		    Weighted Average
Remaining Period of
Recognition (in years) 		 
Stock options   $ 313       1.3