Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity (Tables)

v3.10.0.1
Stockholders' Equity (Tables)
9 Months Ended
Sep. 30, 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

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Cost of revenue

 

$

127

 

 

$

69

 

 

$

289

 

 

$

176

 

Sales and marketing

 

 

134

 

 

 

53

 

 

 

368

 

 

 

219

 

General and administrative

 

 

258

 

 

 

279

 

 

 

932

 

 

 

978

 

Engineering and development

 

 

85

 

 

 

63

 

 

 

273

 

 

 

231

 

 

 

$

604

 

 

$

464

 

 

$

1,862

 

 

$

1,604

 

 

Assumptions on Estimation of Stock Option Fair Values

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

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Expected term

 

5.9 years

 

 

5.3 years

 

 

5.9 years

 

 

5.5 years

 

Volatility

 

 

81.9

%

 

 

80.5

%

 

 

81.4

%

 

 

78.7

%

Annual dividend per share

 

$

 

 

$

 

 

$

 

 

$

 

Risk-free interest rate

 

 

2.90

%

 

 

1.76

%

 

 

2.50

%

 

 

1.95

%

 

Summary of Option Activity

A summary of option activity for the nine months ended September 30, 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

 

1,924

 

 

$

8.62

 

 

 

7.21

 

 

$

 

Granted at fair market value

 

487

 

 

 

1.98

 

 

 

 

 

 

 

 

 

Exercised

 

(1

)

 

 

2.10

 

 

 

 

 

 

 

 

 

Forfeited, cancelled, or expired

 

(401

)

 

 

11.26

 

 

 

 

 

 

 

 

 

Options outstanding at September 30, 2018

 

2,009

 

 

$

6.48

 

 

 

6.08

 

 

$

57

 

Options exercisable at September 30, 2018

 

1,114

 

 

$

8.30

 

 

 

4.76

 

 

$

 

Vested options expired during the quarter

   ended September 30, 2018

 

208

 

 

$

14.28

 

 

 

 

 

 

 

 

 

(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 for the nine months ended September 30, 2018 is as follows (in thousands, except per share data):

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

Average Grant

 

 

Shares

 

 

Date Fair Value

 

Unvested options at December 31, 2017

 

846

 

 

$

3.14

 

Granted

 

487

 

 

$

1.38

 

Vested

 

(337

)

 

$

3.40

 

Forfeited or cancelled

 

(102

)

 

$

2.58

 

Unvested options at September 30, 2018

 

894

 

 

$

2.15

 

 

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 are as follows (in thousands, except per share amounts):

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Proceeds from stock options exercised

 

$

 

 

$

 

 

$

2

 

 

$

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

 

Weighted-average fair value of options granted

   during period

 

$

1.02

 

 

$

1.93

 

 

$

1.38

 

 

$

4.32

 

Total fair value of shares vested during

   the period

 

$

164

 

 

$

302

 

 

$

1,008

 

 

$

1,000

 

 

(1) Excess tax benefits received related to stock option exercises are presented as operating 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 for the nine months ended September 30, 2018 is as follows (in thousands, except per share amounts):

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

Average Grant

 

 

Shares

 

 

Date Fair Value

 

Unvested RSUs at December 31, 2017

 

358

 

 

$

4.84

 

Granted

 

2,747

 

 

$

1.81

 

Vested

 

(186

)

 

$

2.70

 

Forfeited or cancelled

 

(338

)

 

$

3.34

 

Unvested RSUs at September 30, 2018

 

2,581

 

 

$

1.81

 

 

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 nine months ended September 30, 2018 is as follows (in thousands, except exercise price amounts):

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

Average

 

 

Shares

 

 

Exercise Price

 

Warrants outstanding, December 31, 2017

 

1,225

 

 

$

9.63

 

Granted or Issued

 

108

 

 

$

2.24

 

Exercised

 

 

 

$

 

Forfeited, cancelled, or expired

 

(52

)

 

$

2.35

 

Warrants outstanding at September 30, 2018

 

1,281

 

 

$

9.21

 

Warrants exercisable at September 30, 2018

 

1,255

 

 

$

9.07

 

Vested warrants expired during the quarter

   ended September 30, 2018

 

 

 

$