Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity (Tables)

v3.8.0.1
Stockholders' Equity (Tables)
3 Months Ended
Mar. 31, 2018
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

 

 

March 31,

 

 

2018

 

 

2017

 

Cost of revenue

$

57

 

 

$

40

 

Sales and marketing

 

80

 

 

 

73

 

General and administrative

 

467

 

 

 

193

 

Engineering and development

 

97

 

 

 

73

 

 

$

701

 

 

$

379

 

 

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

 

 

March 31,

 

 

2018

 

 

2017

 

Expected term

5.9 years

 

 

5.8 years

 

Volatility

 

81.4

%

 

 

79.4

%

Annual dividend per share

$

 

 

$

 

Risk-free interest rate

 

2.46

%

 

 

1.98

%

 

Summary of Option Activity

A summary of option activity under the 2002 Plan for the three months ended March 31, 2018 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, 2017

 

6,737

 

 

$

1.80

 

 

 

7.21

 

 

$

 

Granted at fair market value

 

2,519

 

 

 

0.42

 

 

 

 

 

 

 

 

 

Exercised

 

(6

)

 

 

0.42

 

 

 

 

 

 

 

 

 

Forfeited, cancelled, or expired

 

(471

)

 

 

3.58

 

 

 

 

 

 

 

 

 

Options outstanding at March 31, 2018

 

8,779

 

 

$

1.40

 

 

 

7.43

 

 

$

 

Options exercisable at March 31, 2018

 

4,264

 

 

$

1.88

 

 

 

5.62

 

 

$

 

Vested options expired during the quarter

   ended March 31, 2018

 

920

 

 

$

2.79

 

 

 

 

 

 

 

 

 

(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 three months ended March 31, 2018 is as follows (in thousands, except per share data):

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

Average Grant

 

 

Shares

 

 

Date Fair Value

 

Unvested options at December 31, 2017

 

3,283

 

 

$

0.95

 

Granted

 

2,519

 

 

$

0.29

 

Vested

 

(630

)

 

$

0.83

 

Forfeited or cancelled

 

(38

)

 

$

1.19

 

Unvested options at March 31, 2018

 

5,134

 

 

$

0.69

 

 

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 months ended March 31 (in thousands, except per share amounts): 

 

 

Three Months Ended

 

 

March 31,

 

 

2018

 

 

2017

 

Proceeds from stock options exercised

$

2

 

 

$

 

Tax benefit related to stock options

   exercised (1)

N/A

 

 

N/A

 

Intrinsic value of stock options exercised (2)

$

 

 

$

 

Weighted-average fair value of options granted

   during period

$

0.29

 

 

$

1.05

 

Total fair value of shares vested during

   the period

$

520

 

 

$

334

 

 

(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 three months ended March 31, 2018 is as follows (in thousands, except per share amounts): 

 

 

 

 

 

 

 

 

 

 

Shares

 

Unvested restricted stock units at December 31, 2017

 

1,789

 

Granted

 

223

 

Vested

 

(35

)

Forfeited or cancelled

 

 

Unvested restricted stock units at March 31, 2018

 

1,977

 

 

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 three months ended March 31, 2018 is as follows (in thousands, except exercise price amounts): 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

Average

 

 

Shares

 

 

Exercise Price

 

Warrants outstanding, December 31, 2017

 

6,126

 

 

$

1.93

 

Granted or Issued

 

258

 

 

$

0.47

 

Exercised

 

 

 

$

 

Forfeited, cancelled, or expired

 

 

 

$

 

Warrants outstanding at March 31, 2018

 

6,384

 

 

$

1.87

 

Warrants exercisable at March 31, 2018

 

6,249

 

 

$

1.82

 

Vested warrants expired during the quarter

   ended March 31, 2018

 

 

 

$