Annual report pursuant to Section 13 and 15(d)

Stock-Based Compensation

v3.7.0.1
Stock-Based Compensation
12 Months Ended
Dec. 31, 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 common shares issuable under the 2012 Employee, Director and Consultant Equity Incentive Plan (the “2012 Plan”) of 1,142,425 shares. The total number of shares available for grant under the 2012 Plan at December 31, 2016 was 907,200.

 

Stock Options

 

A summary of the Company’s stock option activity for the years ended December 31, 2016 and 2015 is as follows:

 

          December 31, 2016        
          Weighted-Average     Weighted-Average
Remaining
Contractual Life
       
    Options     Exercise Price     (Years)     Intrinsic Value  
Outstanding at December 31, 2015     112,373     $ 41.55                  
Granted     39,354     $ 1.37                  
Exercised                                
Forfeited                                
Expired     (14,380 )   $ 41.33                  
Outstanding at December 31, 2016     137,347     $ 30.59       8.2     $ -  
Exercisable at December 31, 2016     107,954     $ 42.31       7.9     $         -  
Vested and expected to vest at December 31, 2016     137,347     $ 30.59       8.7     $ -  

 

          December 31, 2015        
          Weighted-Average     Weighted-Average
Remaining
Contractual Life
       
    Options     Exercise Price     (Years)     Intrinsic Value  
Outstanding at December 31, 2014     92,289     $ 76.95                  
Granted     115,690     $ 13.20                  
Exercised     -     $ -                  
Forfeited     (70,447 )   $ 41.10                  
Expired     (25,159 )   $ 63.65                  
Outstanding at December 31, 2015     112,373     $ 41.55       7.7     $               -  
Exercisable at December 31, 2015     44,879     $ 83.10       5.5     $ -  
Vested and expected to vest at December 31, 2015     109,996     $ 42.15       7.7     $ -  

 

The aggregate intrinsic value in the table above is calculated as the difference between the estimated fair value of the Company’s stock at December 31, 2016 and the exercise price of each option.

 

The weighted average grant date fair value of options granted during the years ended December 31, 2016 and 2015 was $0.84 and $5.32, respectively.

 

The Company estimates the fair value of each stock option on the grant date using the Black-Scholes 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 for the years ended December 31, 2016 and 2015:

 

    December 31,  
    2016     2015  
Weighted-average risk-free interest rate     1.63 %     1.64 %
Weighted-average expected life (in years)     6.30       6.30  
Expected dividend yield     0 %     0 %
Weighted-average expected volatility     66 %     48 %

 

Restricted Stock Award

 

During the year ended December 31, 2015, the Company issued 18,000 Restricted stock awards (“RSA”) with a weighted average grant date fair value of $4.80 per share. Such shares vested in 2015 and the Company recorded $87,000 of stock-based compensation for RSAs during the year ended December 31, 2015.

 

There was not RSA activity during the year ended December 31, 2016.

 

Stock-Based Awards Granted to Nonemployees

 

The Company from time to time grants options to purchase common stock or restricted stock to non-employees for services rendered and records expense ratably over the vesting period of each award. The Company estimates the fair value of the stock options using the Black-Scholes valuation model at each reporting date. No stock options were granted to non-employees during the year ended December 31, 2015. The Company granted 18,000 RSAs to non-employees and recorded stock-based compensation expense of $87,000 during the year ended December 31, 2015. The Company did not grant any RSA’s or stock options to non-employees in 2016. Total non-employee options were 10,766 number of shares with a total expense of $6,795 in 2016. These amounts are included in the tables above. 

 

Summary of Stock-Based Compensation Expense

 

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

 

    As of December 31,  
    2016     2015  
Cost of revenue   $ 17     $ 50  
Research and development     104       177  
General and administrative     132       514  
Selling and marketing     17       170  
Capitalized into inventory     3       75  
    $ 273     $ 986  

 

Unrecognized stock-based compensation at December 31, 2016 and 2015 were as follows (in thousands):

 

    As of December 31, 2016  
          Weighted  
          Average  
    Unrecognized     Remaining Period  
    Stock-Based     of Recognition  
    Compensation     (in years)  
Stock options   $ 256       1.13  
                 

 

    As of December 31, 2015  
          Weighted  
          Average  
    Unrecognized     Remaining Period  
    Stock-Based     of Recognition  
    Compensation     (in years)  
Stock options   $ 484       1.9