BIOLASE, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Awards and Per Share Information (Tables)

Stock-Based Awards and Per Share Information (Tables)

3 Months Ended

Mar. 31, 2013

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,
	2013		2012
Cost of revenue	$	80	$	58
Sales and marketing		139		121
General and administrative		115		358
Engineering and development		34		46

	$	368	$	583

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 March 31,
	2013			2012
Expected term		3.7 years			4.1 years
Volatility		92.70	%		102	%
Annual dividend per share	$	0.00		$	0.00
Risk-free interest rate		0.80	%		0.93	%

Summary of Option Activity Under Stock Option Plans

A summary of option activity under our stock option plans for the three months ended March 31, 2013 is as follows:


	Shares			Weighted average exercise price		Weighted average remaining contractual term (years)		Aggregate intrinsic value(1)
Options outstanding at December 31, 2012		3,860,000		$	3.48
Plus: Options granted		612,000		$	3.76
Less: Options exercised		(29,000	)	$	2.53
Options forfeited, canceled, or expired		(106,000	)	$	3.68

Options outstanding at March 31, 2013		4,337,000		$	3.47		3.90	$	5,379,000

Options exercisable at March 31, 2013		2,460,000		$	3.84		3.65	$	3,099,000

Vested options expired during the quarter ended March 31, 2013		—		$	—

(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 Vesting Options

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


	Three Months Ended March 31,
	2013		2012
Proceeds from stock options exercised	$	76	$	277
Tax benefit related to stock options exercised ⁽¹⁾		N/A		N/A
Intrinsic value of stock options exercised ⁽²⁾	$	23	$	11
Weighted-average fair value of options granted during period	$	1.84	$	1.99
Total fair value of shares vested during the period	$	314	$	557

(1)	Excess tax benefits received related to stock option exercises are presented as financing cash inflows. We currently do not receive a tax benefit related to the exercise of stock options due to our 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.

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

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