v2.4.1.9
11. Share-Based Compensation
 3 Months Ended
Mar. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
11. Share-Based Compensation

Equity Plans

 

The Company’s board of directors and stockholders approved the following equity plans:

 

  · the 1998 Share Incentive Plan

 

  · the 2000 Share Incentive Plan

 

  · the 2004 Share Incentive Plan

 

  · the 2006 Share Incentive Plan

 

  · the 2013 Equity Incentive Plan (“2013 Plan”)

 

The Company issues stock options to employees, consultants and non-employee directors. Stock option awards generally vest over a four year period and have a maximum term of ten years. Stock options under these plans have been granted with an exercise price equal to the fair market value on the date of the grant. Nonqualified and Incentive Stock Options, restrictive stock awards (“RSAs”) and restrictive stock units (“RSUs”) may be granted from these plans. Prior to the Company’s initial public offering, the fair market value of the Company’s stock had been historically determined by the board of directors and from time to time with the assistance of third party valuation specialists.

 

Stock Options

 

Options have been granted to the Company’s employees under the five incentive plans and generally become exercisable as to 25% of the shares on the first anniversary date following the date of grant and semi-annually thereafter. All options expire ten years after the date of grant.

 

The following is a summary of option activity:

 

    Number of shares     Weighted Average Exercise Price     Weighted Average Fair Value     Weighted Average Remaining Contractual Life     Aggregate Intrinsic Value  
Outstanding, December 31, 2014     1,423       8.96       4.48       –       3,486  
Exercised     (11 )     7.05       3.59       –       50  
Forfeited     (16 )     9.93       5.32       –       22  
Outstanding, March 31, 2015     1,396     $ 8.96     $ 4.47       7.852     $ 6,869  
Exercisable, March 31, 2015     687     $ 8.20     $ 3.69       7.357     $ 3,905  
Vested and expected to vest     1,326     $ 8.91     $ 4.43       7.823     $ 6,592  

 

As of March 31, 2015, there was approximately $3.2 million of unrecognized stock option expense, net of estimated forfeitures, which is expected to be recognized over 2.37 years.

 

Restricted Stock Units/Awards

 

The following is a summary of RSU/RSA activity:

 

    Number of shares     Weighted Average Fair Value     Aggregate Intrinsic Value  
Outstanding at December 31, 2014     21       18.22       238  
Granted     123       8.94       1,105  
Exercised/Released     1       3.59       16  
Cancelled/Forfeited     (2 )     8.94       –  
Outstanding at March 31, 2015     143     $ 10.31     $ 1,992  
Exercisable, March 31, 2015     17     $ 18.20     $ 231  
Vested and expected to vest     137     $ 10.35     $ 1,908  

 

As of March 31, 2015 was $1.0 million of unrecognized compensation expense related to these RSU’s and RSA’s. This expense is expected to be recognized over 3.81 years.

 

Share-Based Compensation

 

Employee share-based compensation expenses recognized for the periods indicated (in thousands):

  

    Three months ended March 31,  
    2015     2014  
Share-Based compensation - by expense type                
Cost of sales   $ 16     $ 25  
Research and development     53       25  
Sales and marketing     50       23  
General and administrative     397       416  
    $ 516     $ 489  

 

 

    Three months ended March 31,  
    2015     2014  
Share-Based compensation - by award type                
Employee stock options   $ 385     $ 414  
Restricted stock units/awards     131       73  
Warrants     –       2  
    $ 516     $ 489