Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

v3.8.0.1
Stock-Based Compensation
6 Months Ended
Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation

9. Stock-Based Compensation

 

A summary of the Company’s outstanding stock option activity for the six months ended June 30, 2017, is as follows:

 

          June 30, 2017        
                Weighted-Average        
          Weighted-     Remaining        
          Average     Contractual Life     Intrinsic  
    Options     Exercise Price     (Years)     Value  
As of December 31, 2016     11,446     $ 367.08       8.2     $ -  
Granted     -       -       -       -  
Exercised     -       -       -       -  
Forfeited     -       -       -       -  
Expired     (47 )     9,184.80       -       -  
As of June 30, 2017     11,399     $ 331.92       7.7       -  
Exercisable as of June 30, 2017     9,678     $ 429.24       7.5       -  
Expected to vest as of June 30, 2017     11,399     $ 331.92       7.7       -  

 

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 six months ended June 30, 2016 (no options were granted for the six months ended June 30, 2017):

 

    Six Months Ended  
    June 30, 2016  
Weighted-average risk-free interest rate     1.86 %
Weighted-average expected life (in years)     6.30  
Expected dividend yield     - %
Weighted-average expected volatility     65.00 %

 

Summary of Stock-Based Compensation Expense

 

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

 

    Three Months Ended June 30,     Six Months Ended June 30,  
    2017     2016     2017     2016  
Cost of revenue   $ 5     $ 3     $ 10     $ 7  
Research and development     24       20       50       49  
General and administrative     23       31       46       69  
Selling and marketing     7       2       13       17  
Capitalized into inventory     -       1       -       3  
    $ 59     $ 57     $ 119     $ 145  

 

Unrecognized stock-based compensation as of June 30, 2017 is as follows (in thousands):

 

          Weighted Average  
    Unrecognized Stock-Based     Remaining
of Recognition
 
    Compensation     (in years)  
Stock options   $ 142       0.78