Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Awards and Per Share Information (Tables)

v3.3.0.814
Stock-Based Awards and Per Share Information (Tables)
 9 Months Ended
Sep. 30, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Summary of Income Statement Classification of Compensation Expense (Credit)

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

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

Cost of revenue

$

46

 

 

$

29

 

 

$

184

 

 

$

116

 

Sales and marketing

 

(42

)

 

 

91

 

 

 

445

 

 

 

328

 

General and administrative

 

594

 

 

 

162

 

 

 

1,442

 

 

 

378

 

Engineering and development

 

23

 

 

 

19

 

 

 

185

 

 

 

65

 

 

$

621

 

 

$

301

 

 

$

2,256

 

 

$

887

 

 
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

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

Expected term

6.0 years

 

 

4.0 years

 

 

5.7 years

 

 

3.8 years

 

Volatility

86.17%

 

 

85.65%

 

 

88.98%

 

 

94.41%

 

Annual dividend per share

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Risk-free interest rate

1.70%

 

 

1.65%

 

 

1.60%

 

 

1.66%

 

 
Summary of Option Activity

A summary of option activity under the 2002 Plan for the nine months ended September 30, 2015 is as follows:

 

 

 

 

 

 

 

 

 

 

Weighted Average

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

Remaining

 

 

Aggregate

 

 

 

 

 

 

Average

 

 

Contractual

 

 

Intrinsic

 

 

Shares

 

 

Exercise Price

 

 

Term (Years)

 

 

Value(1)

 

Options outstanding at December 31, 2014

 

3,391,000

 

 

$

3.11

 

 

 

2.97

 

 

$

1,063,000

 

Granted

 

3,271,000

 

 

$

2.32

 

 

 

 

 

 

 

 

 

Exercised

 

(38,000

)

 

$

1.15

 

 

 

 

 

 

 

 

 

Forfeited, cancelled, or expired

 

(1,182,000

)

 

$

3.14

 

 

 

 

 

 

 

 

 

Options outstanding at September 30, 2015

 

5,442,000

 

 

$

2.64

 

 

 

6.09

 

 

$

2,000

 

Options exercisable at September 30, 2015

 

2,696,000

 

 

$

2.89

 

 

 

3.43

 

 

$

2,000

 

Vested options expired during the quarter

   ended September 30, 2015

 

477,000

 

 

$

3.60

 

 

 

 

 

 

 

 

 

 

(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.

Cash Proceeds Along with Fair Value Disclosures Related to Grants, Exercises, and Vested Options

Cash proceeds along with fair value disclosures related to grants, exercises, and vested options under the 2002 Plan are provided in the following table (in thousands, except per share amounts):

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

Proceeds from stock options exercised

$

—

 

 

$

54

 

 

$

44

 

 

$

310

 

Tax benefit related to stock options

   exercised (1)

N/A

 

 

N/A

 

 

N/A

 

 

N/A

 

Intrinsic value of stock options exercised (2)

$

—

 

 

$

13

 

 

$

52

 

 

$

108

 

Weighted-average fair value of options granted

   during period

$

1.22

 

 

$

1.35

 

 

$

1.45

 

 

$

1.62

 

Total fair value of shares vested during

   the period

$

482

 

 

$

273

 

 

$

1,204

 

 

$

921

 

 

(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 Warrant Activity

A summary of warrant activity for the nine months ended September 30, 2015 is as follows:  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

Average

 

 

 

Shares

 

 

Exercise Price

 

 

Warrants outstanding at December 31, 2014

 

888,000

 

 

$

6.04

 

 

Granted

 

—

 

 

 

 

 

 

Exercised

 

—

 

 

 

 

 

 

Forfeited, cancelled, or expired

 

—

 

 

 

 

 

 

Warrants outstanding at September 30, 2015

 

888,000

 

 

$

6.04

 

 

Warrants exercisable at September 30, 2015

 

753,000

 

 

$

6.40

 

 

Vested warrants expired during the quarter

   ended September 30, 2015

 

—

 

 

N/A