Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity (Tables)

v3.7.0.1
Stockholders' Equity (Tables)
6 Months Ended
Jun. 30, 2017
Equity [Abstract]  
Summary of Income Statement Classification of Compensation Expense

The following table summarizes the income statement classification of compensation expense associated with share-based payments (in thousands):

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Cost of revenue

$

67

 

 

$

99

 

 

$

107

 

 

$

169

 

Sales and marketing

 

93

 

 

 

187

 

 

 

166

 

 

 

321

 

General and administrative

 

506

 

 

 

541

 

 

 

699

 

 

 

1,092

 

Engineering and development

 

95

 

 

 

119

 

 

 

168

 

 

 

198

 

 

$

761

 

 

$

946

 

 

$

1,140

 

 

$

1,780

 

 

Assumptions on Estimation of Stock Option Fair Values

The stock option fair values, under the 2002 Plan, were estimated using the Black-Scholes option-pricing model with the following assumptions:

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Expected term

5.4 years

 

 

5.6 years

 

 

5.6 years

 

 

5.7 years

 

Volatility

 

77.6

%

 

 

83.8

%

 

 

78.5

%

 

 

84.8

%

Annual dividend per share

$

 

 

$

 

 

$

 

 

$

 

Risk-free interest rate

 

1.98

%

 

 

1.32

%

 

 

1.98

%

 

 

1.34

%

 

Summary of Option Activity

A summary of option activity under the 2002 Plan for the six months ended June 30, 2017 is as follows (in thousands, except per share data):  

 

 

 

 

 

 

 

 

 

 

Weighted Average

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

Remaining

 

 

Aggregate

 

 

 

 

 

 

Average

 

 

Contractual

 

 

Intrinsic

 

 

Shares

 

 

Exercise Price

 

 

Term (Years)

 

 

Value(1)

 

Options outstanding, December 31, 2016

 

6,612

 

 

$

2.06

 

 

 

7.70

 

 

$

178

 

Granted at fair market value

 

1,214

 

 

1.38

 

 

 

 

 

 

 

 

 

Exercised

 

(3

)

 

0.86

 

 

 

 

 

 

 

 

 

Forfeited, cancelled, or expired

 

(383

)

 

2.19

 

 

 

 

 

 

 

 

 

Options outstanding at June 30, 2017

 

7,440

 

 

$

1.95

 

 

 

7.74

 

 

$

32

 

Options exercisable at June 30, 2017

 

3,759

 

 

$

2.35

 

 

 

6.35

 

 

$

14

 

Vested options expired during the quarter

   ended June 30, 2017

 

63

 

 

$

2.86

 

 

 

 

 

 

 

 

 

(1) The intrinsic value calculation does not include negative values. This can occur when the fair market value on the reporting date is less than the exercise price of the grant.

Summary of Unvested Stock Option Activity

A summary of unvested stock option activity under the 2002 Plan for the six months ended June 30, 2017 is as follows (in thousands, except per share data):

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

Average Grant

 

 

Shares

 

 

Date Fair Value

 

Unvested options at December 31, 2016

 

3,259

 

 

$

1.16

 

Granted

 

1,214

 

 

$

0.92

 

Vested

 

(638

)

 

$

1.09

 

Forfeited or cancelled

 

(154

)

 

$

1.21

 

Unvested options at June 30, 2017

 

3,681

 

 

$

1.09

 

 

Cash Proceeds, Along With Fair Value Disclosures Related to Grants, Exercises, and Vesting Options

 

Cash proceeds, along with fair value disclosures related to grants, exercises, and vested options under the 2002 Plan are as follows for the three and six months ended June 30 (in thousands, except per share amounts): 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Proceeds from stock options exercised

$

3

 

 

$

 

 

$

3

 

 

$

 

Tax benefit related to stock options

   exercised (1)

N/A

 

 

N/A

 

 

N/A

 

 

N/A

 

Intrinsic value of stock options exercised (2)

$

1

 

 

$

 

 

$

1

 

 

$

 

Weighted-average fair value of options granted

   during period

$

0.79

 

 

$

0.97

 

 

$

0.92

 

 

$

0.90

 

Total fair value of shares vested during

   the period

$

364

 

 

$

341

 

 

$

698

 

 

$

1,053

 

 

(1) Excess tax benefits received related to stock option exercises are presented as financing cash inflows. The Company currently does not receive a tax benefit related to the exercise of stock options due to the Company’s net operating losses.

(2) The intrinsic value of stock options exercised is the amount by which the market price of the stock on the date of exercise exceeded the market price of the stock on the date of grant.

Summary of Unvested Restricted Stock Units

A summary of unvested RSU activity under the 2002 Plan for the six months ended June 30, 2017 is as follows:

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

Average Grant

 

 

Shares

 

 

Date Fair Value

 

Unvested restricted stock units at December 31, 2016

 

418,511

 

 

$

1.23

 

Granted

 

1,880,176

 

 

$

1.41

 

Vested

 

(343,511

)

 

$

1.32

 

Forfeited or cancelled

 

 

 

$

 

Unvested restricted stock units at June 30, 2017

 

1,955,176

 

 

$

1.38

 

 

Summary of Warrant Activity

The Company issues warrants to acquire shares of BIOLASE common stock as approved by the Board.  A summary of warrant activity for the six months ended June 30, 2017 is as follows:

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

Average

 

 

Shares

 

 

Exercise Price

 

Warrants outstanding, December 31, 2016

 

11,406,260

 

 

$

3.64

 

Granted or Issued

 

3,925,871

 

 

$

1.80

 

Exercised

 

 

 

$

 

Forfeited, cancelled, or expired

 

 

 

$

 

Warrants outstanding at June 30, 2017

 

15,332,131

 

 

$

3.17

 

Warrants exercisable at June 30, 2017

 

11,271,260

 

 

$

3.64

 

Vested warrants expired during the quarter

   ended June 30, 2017

 

 

 

$