Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

v3.8.0.1
Stock-Based Compensation
9 Months Ended
Sep. 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 nine months ended September 30, 2017, is as follows:

 

          September 30, 2017        
    Options     Weighted-Average
Exercise Price
    Weighted-
Average Remaining
Contractual Life
(Years)
    Intrinsic
Value
 
As of December 31, 2016     11,446     $ 367.08       8.2     $ -  
Granted     -       -       -       -  
Exercised     -       -       -       -  
Forfeited     -       -       -       -  
Expired     (47 )     9,187.80       -       -  
As of September 30, 2017     11,399     $ 331.92       7.3       -  
Exercisable as of September 30, 2017     11,025     $ 405.60       7.3       -  
Expected to vest as of September 30, 2017     11,399     $ 331.92       7.3       -  

 

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 (no options were granted for the nine months ended September 30, 2017):

 

    Nine Months Ended  
    September 30, 2016  
Weighted-average risk-free interest rate     1.6 %
Weighted-average expected life (in years)     6.3  
Expected dividend yield     - %
Weighted-average expected volatility     65.0 %

 

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 September 30,    

Nine Months Ended

September 30,

 
    2017     2016     2017     2016  
Cost of revenue   $ -     $ 6     $ 10     $ 13  
Research and development     11       18       61       71  
General and administrative     23       20       69       95  
Selling and marketing     20       1       33       18  
Capitalized into inventory     -       11       -       14  
    $ 54     $ 56     $ 173     $ 211  

 

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

 

          Weighted Average  
    Unrecognized Stock-Based     Remaining
of Recognition
 
    Compensation     (in years)  
Stock options   $ 88       0.65