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Equity Compensation Plans | 12 Months Ended
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Dec. 31, 2017
Equity Compensation Plans [Abstract] |
Equity Compensation Plans | 1 4. EQUITY COMPENSATION PLANS The Company has two share-based incentive plans: the 2014 Stock Incentive Plan (2014 Plan) and the 2008 Employee Stock Purchase Plan (ESPP). Stock Incentive Plan Under the 2014 Plan, the Board of Directors may grant incentive stock options to Company employees and may grant nonstatutory stock options, restricted stock or stock appreciation rights to Company employees, directors and consultants. The administrator (currently the Compensation Committee of the Board of Directors) has the authority to determine the terms of any awards, including the number of shares subject to each award, the exercisability of the awards and the form of consideration. As of December 31, 2017, 10,249 shares of common stock had been reserved for issuance under the 2014 Plan and 1,128 shares were available f or future grants. Options granted under the 2014 Plan generally expire ten years from the date of grant and generally vest at a rate of 25% on the first anniversary date of the grant and ratably each month thereafter over the following three years. Restricted stock awards granted under the 2014 Plan vest between one and four years fro m the date of grant. Activity under the plans during 2017 was as follows: ﻿
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﻿ |  |  | Number of |  |  | Average |  |  | Remaining |  |  | Aggregate
﻿ |  |  | Shares |  |  | Exercise |  |  | Contractual |  |  | Intrinsic
﻿Time-Based Stock Options |  |  | Outstanding |  |  | Price |  |  | Term |  |  | Value
﻿Outstanding at January 1, 2017 |  |  | 2,454 |  | $ | 12.51 |  |  |  |  |  |
﻿Granted |  |  | 65 |  |  | 20.22 |  |  |  |  |  |
﻿Exercised |  |  | (458) |  |  | 9.61 |  |  |  |  |  |
﻿Cancelled |  |  | (35) |  |  | 19.08 |  |  |  |  |  |
﻿Outstanding at December 31, 2017 |  |  | 2,026 |  | $ | 13.30 |  |  | 5.62 |  | $ | 11,730
﻿Vested and expected to vest |  |  | 2,004 |  | $ | 13.23 |  |  | 5.58 |  | $ | 11,717
﻿Exercisable at December 31, 2017 |  |  | 1,766 |  | $ | 12.48 |  |  | 5.20 |  | $ | 11,471
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﻿ |  |  | Number of |  |  | Average |  |  |  |  |  |
﻿ |  |  | Shares |  |  | Grant Date |  |  |  |  |  |
﻿Restricted Stock |  |  | Outstanding |  |  | Fair Value |  |  |  |  |  |
﻿Outstanding at January 1, 2017 |  |  | 1,416 |  | $ | 17.40 |  |  |  |  |  |
﻿Awarded |  |  | 771 |  |  | 19.38 |  |  |  |  |  |
﻿Released |  |  | (331) |  |  | 17.43 |  |  |  |  |  |
﻿Forfeited |  |  | (11) |  |  | 18.52 |  |  |  |  |  |
﻿Outstanding at December 31, 2017 |  |  | 1,845 |  | $ | 18.22 |  |  |  |  |  |
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﻿ |  |  |  |  |  |  |  |  | Weighted |  |  |
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﻿ |  |  | Number of |  |  | Average |  |  | Remaining |  |  | Aggregate
﻿ |  |  | Shares |  |  | Exercise |  |  | Contractual |  |  | Intrinsic
﻿Performance Stock Options |  |  | Outstanding |  |  | Price |  |  | Term |  |  | Value
﻿Outstanding at January 1, 2017 |  |  | 450 |  | $ | 13.48 |  |  |  |  |  |
﻿Granted |  |  | — |  |  | — |  |  |  |  |  |
﻿Exercised |  |  | — |  |  | — |  |  |  |  |  |
﻿Cancelled |  |  | — |  |  | — |  |  |  |  |  |
﻿Outstanding at December 31, 2017 |  |  | 450 |  | $ | 13.48 |  |  | 5.45 |  | $ | 2,774
﻿Exercisable at December 31, 2017 |  |  | 250 |  | $ | 13.48 |  |  | 5.45 |  | $ | 1,541
﻿ ﻿ Activity under the plans during 2016 was as follows: ﻿ ﻿
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﻿ |  |  | Number of |  |  | Average |  |  | Remaining |  |  | Aggregate
﻿ |  |  | Shares |  |  | Exercise |  |  | Contractual |  |  | Intrinsic
﻿Time-Based Stock Options |  |  | Outstanding |  |  | Price |  |  | Term |  |  | Value
﻿Outstanding at January 1, 2016 |  |  | 2,734 |  | $ | 11.75 |  |  |  |  |  |
﻿Granted |  |  | 215 |  |  | 16.74 |  |  |  |  |  |
﻿Exercised |  |  | (394) |  |  | 8.47 |  |  |  |  |  |
﻿Cancelled |  |  | (101) |  |  | 16.66 |  |  |  |  |  |
﻿Outstanding at December 31, 2016 |  |  | 2,454 |  | $ | 12.51 |  |  | 6.02 |  | $ | 18,295
﻿Vested and expected to vest |  |  | 2,420 |  | $ | 12.42 |  |  | 5.99 |  | $ | 18,228
﻿Exercisable at December 31, 2016 |  |  | 1,914 |  | $ | 11.01 |  |  | 5.40 |  | $ | 16,897
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﻿ |  |  |  |  |  | Weighted |  |  |  |  |  |
﻿ |  |  | Number of |  |  | Average |  |  |  |  |  |
﻿ |  |  | Shares |  |  | Grant Date |  |  |  |  |  |
﻿Restricted Stock |  |  | Outstanding |  |  | Fair Value |  |  |  |  |  |
﻿Outstanding at January 1, 2016 |  |  | 1,071 |  | $ | 17.30 |  |  |  |  |  |
﻿Awarded |  |  | 710 |  |  | 16.35 |  |  |  |  |  |
﻿Forfeited |  |  | (70) |  |  | 17.31 |  |  |  |  |  |
﻿Released |  |  | (295) |  |  | 14.49 |  |  |  |  |  |
﻿Outstanding at December 31, 2016 |  |  | 1,416 |  | $ | 17.40 |  |  |  |  |  |
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﻿ |  |  |  |  |  |  |  |  | Weighted |  |  |
﻿ |  |  |  |  |  | Weighted |  |  | Average |  |  |
﻿ |  |  | Number of |  |  | Average |  |  | Remaining |  |  | Aggregate
﻿ |  |  | Shares |  |  | Exercise |  |  | Contractual |  |  | Intrinsic
﻿Performance Stock Options |  |  | Outstanding |  |  | Price |  |  | Term |  |  | Value
﻿Outstanding at January 1, 2016 |  |  | 450 |  | $ | 13.48 |  |  |  |  |  |
﻿Granted |  |  | — |  |  | — |  |  |  |  |  |
﻿Exercised |  |  | — |  |  | — |  |  |  |  |  |
﻿Cancelled |  |  | — |  |  | — |  |  |  |  |  |
﻿Outstanding at December 31, 2016 |  |  | 450 |  | $ | 13.48 |  |  | 6.45 |  | $ | 3,074
﻿Exercisable at December 31, 2016 |  |  | 250 |  | $ | 13.48 |  |  | 6.45 |  | $ | 1,708
The total intrinsic value of options exercised during the years ended December 31, 201 7, 201 6 and 201 5 was $5,121, $3,550 and $2,740. As a result of the Company’s full valuation allowance on its net deferred tax assets, no tax benefit was recognized related to the stock option exercises. The exercise price per share of each option is equal to the fair market value of the underlying share on the date of grant. For 201 7, 201 6 and 201 5, $4,402, $3,337 and $2,703 in cash proceeds were included in the Company’s Consolidated Statements of Cash Flows as a result of the exercise of stock options. The total fair value of restricted stock vested during 201 7, 201 6 and 2015 was $6,235, $5,102 and $2,767. The Company issues registered shares of common stock to satisfy stock option exercises and restricted stock grants. The Company recognized expense related to time-based stock options and restricted stock for 201 7, 201 6, and 201 5 of $13,908, $10,872 and $8,072. As of December 31, 201 7 there was $23,331 of unrecognized compensation costs related to non-vested stock option and restricted stock arrangements ($2,197 relating to stock options and $21,134 relating to restricted stock). This cost is expected to be recognized over a weighted-average period of 2.2 years for stock options and 2.2 years for restricted stock. The Company has awarded 450 performance options to its President and Chief Executive Officer. The options expire ten years from the date of grant and vest in increments of 25 shares when the volume adjusted weighted average closing price of the common stock of the Company as reported by NASDAQ (or any other exchange on which the common stock of the Company is listed) for 30 consecutive days equals or exceeds each of $10.00 per share, $12.50 per share, $15.00 per share, $17.50 per share, $20.00 per share, $25.00 per share, $30.00 per share, $35.00 per share and $40.00 per share. In accordance with FASB ASC 718, a Monte Carlo simulation was performed to estimate the fair values, vesting terms and vesting probabilities for each tranche of options. Expense calculated using these estimates is being recorded over the estimated vesting terms. The Company recognized expense related to the performance options during 201 7, 201 6 and 201 5 of $43, $269 and $546. As of December 31, 201 7, compensation costs related to non-vested performance options were fully recognized. Empl oyee Stock Purchase Plan T he ESPP is available to eligible employees as defined in the plan document. Under the ESPP, shares of the Company’s common stock may be purchased at a discount (currently 15%) of the lesser of the closing price of the Company’s common stock on the first trading day or the last trading day of the offering period. The offering period (currently six months) and the offering price are subject to change. Participants may not purchase more than $25 of the Company’s common stock in a calendar year and may not purchase a value of more than 3 shares during an offering period. O n the first day of each fiscal year during the term of the ESPP, the number of shares available for sale under the ESPP may be increased by the lesser of (i) two percent (2%) of the Company’s outstanding shares of common stock as of the close of business on the last business day of the prior calendar year, not to exceed 600 shares, or (ii) a lesser amount determined by the Board of Directors. Shares have not been added to the ESPP since 2011. A s of December 31, 201 7, there were 225 shares available for future issuance under the ESPP. Share-based compensation expense with respect to the ESPP was $664, $556 and $379 for 201 7, 201 6 and 201 5. Valuation and Expense Information Under FASB ASC 718 The following table summarizes share-based compensation expense related to employee s, directors and consultants under FASB ASC 718 for 201 7, 201 6 and 201 5. Th e expense was allocated as follows: ﻿ ﻿
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﻿ |  | 2017 |  | 2016 |  | 2015
﻿Cost of revenue |  | $ | 610 |  | $ | 420 |  | $ | 416
﻿Research and development expenses |  |  | 2,052 |  |  | 1,825 |  |  | 1,373
﻿Selling, general and administrative expenses |  |  | 11,953 |  |  | 9,452 |  |  | 7,208
﻿Total |  | $ | 14,615 |  | $ | 11,697 |  | $ | 8,997
﻿ In calculating compensation expense, the fair value of the options is estimated on the grant date using the Black-Scholes model including the following assumptions: ﻿
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﻿ |  |  | 2017 |  |  | 2016 |  |  | 2015
﻿Risk-free interest rate |  |  | 1.75 - 2.12 | % |  |  | 1.06 - 2.02 | % |  |  | 1.30 - 1.96 | %
﻿Expected life of option (years) |  |  | 5.21 to 5.76 |  |  |  | 5.27 to 7.10 |  |  |  | 5.20 to 6.89 |
﻿Expected volatility of stock |  |  | 43.00 - 48.00 | % |  |  | 46.00 - 51.00 | % |  |  | 46.00 - 67.00 | %
﻿Weighted-average volatility |  |  | 44.50 | % |  |  | 48.87 | % |  |  | 54.75 | %
﻿Dividend yield |  |  | 0.00 | % |  |  | 0.00 | % |  |  | 0.00 | %
The Company’s estimate of volatility is based solely on the Company’s trading history over the expected option life. The risk-free interest rate assumption is based upon the U.S. treasury yield curve at the time of grant for the expected option life. The Company estimates the expected terms of options using historical employee exercise behavior. The fair value of restricted stock awards is based on the market value of the Company’s stock on the date of the awards. Based on the assumptions noted above, the weighted average estimated grant date fair value per share of the stock options and restricted stock granted for 201 7, 201 6 and 201 5 was as follows: ﻿
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﻿ |  | 2017 |  |  | 2016 |  |  | 2015
﻿Stock options |  | $ | 8.60 |  |  | $ | 8.25 |  |  | $ | 11.12
﻿Restricted stock |  |  | 19.38 |  |  |  | 16.35 |  |  |  | 17.82
In calculating compensation expense for performance options, the fair value of the options wa s estimated on the grant date s using a Monte Carlo simulation including strike prices of $5.91 and $21.04, contractual terms of 10 years, expected volatility of 69.60% and 60.50% and interest rates of 1.75% and 2.73%. The contractual term assumes that the performance options issued to the CEO of the Company will be held until e xpiration. Expected volatility wa s estimated based on the Company’s trading history over the expected option life. The expected rate of return assumption wa s based upon the U.S. treasury yield curve at the time of grant for the expected option life. ﻿ ﻿ Based on the assumptions noted above, the estimated grant date fair value per share of the performance options granted were as follows: ﻿
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﻿ |  | Price |  |  | Fair Value of |  |  | Fair Value of
﻿ |  | Target |  |  | 2012 Grant |  |  | 2014 Grant
﻿Tranche 1 |  | $ | 10.00 |  |  | $ | 4.32 |  |  | $ | 14.74
﻿Tranche 2 |  |  | 12.50 |  |  |  | 4.30 |  |  |  | 14.74
﻿Tranche 3 |  |  | 15.00 |  |  |  | 4.27 |  |  |  | 14.74
﻿Tranche 4 |  |  | 17.50 |  |  |  | 4.23 |  |  |  | 14.74
﻿Tranche 5 |  |  | 20.00 |  |  |  | 4.19 |  |  |  | 14.73
﻿Tranche 6 |  |  | 25.00 |  |  |  | 4.10 |  |  |  | 14.73
﻿Tranche 7 |  |  | 30.00 |  |  |  | 4.01 |  |  |  | 14.71
﻿Tranche 8 |  |  | 35.00 |  |  |  | 3.92 |  |  |  | 14.67
﻿Tranche 9 |  |  | 40.00 |  |  |  | 3.83 |  |  |  | 14.61

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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