Stockholders’ Equity

Preferred Stock

The Company has 10,000,000 authorized shares of preferred stock with a par value of $0.00001 per share. As of March 31, 2019, none were issued and outstanding.

Common Stock

The Company has 100,000,000 authorized shares of common stock with a par value of $0.00001 per share. As of March 31, 2019, 27,285,363 shares were issued and outstanding.

2017 Omnibus Incentive Plan and Stock-based Compensation Allocation

The Company’s 2017 Omnibus Incentive Plan (the “Plan”) provides for the grant of incentive options to employees of the Company, and for the grant of nonstatutory options, restricted stock awards, restricted stock unit awards, stock appreciation rights, performance stock awards and other forms of stock compensation to the Company’s employees, including officers, directors, consultants and employees of the Company. The maximum number of shares of common stock that may be issued under the Plan is 4,361,291 shares, plus an annual increase on each anniversary of November 21, 2017 equal to 4% of the total issued and outstanding shares of the Company’s common stock as of such anniversary (or such lesser number of shares as may be determined by the Company’s board of directors). On November 21, 2018, an additional 1,091,000 were reserved under the evergreen provision of the Plan. As of March 31, 2019, the Company has available an aggregate of 1,283,193 shares of common stock for future issuance under the Plan.

Stock-Based Award Activity and Balances

Options are granted at exercise prices based on the Company’s common stock price on the date of grant. The Options and RSU grants generally vest over a 2- to 4-year period. There have been no awards granted with performance conditions and no awards with market conditions for the periods presented. The options generally have a contractual term of 10 years. The fair value of options is estimated using the Black‑Scholes option pricing model, which has various inputs, including the grant date common share price, exercise price, risk‑free interest rate, volatility, expected life and dividend yield. The change of any of these inputs could significantly impact the determination of the fair value of the Company’s options as well as significantly impact its results of operations. The fair value of RSU grants is determined at the grant date based on the common share price. The Company records stock‑based compensation expense net of actual forfeitures when they occur.

The weighted-averages for key assumptions used in determining the fair value of stock options granted were as follows:



	Three Months Ended March 31,
	2019	2018
Volatility	59.2%	56.0%
Risk-free interest rate	2.62%	2.40%
Expected life in years	6.17	6.23
Dividend yield rate	—%	—%

A summary of stock option activity under the Plan for the three months ended March 31, 2019, is presented below:



				Weighted
		Weighted		Average	Aggregate
		Average		Remaining	Intrinsic
	Stock	Exercise		Contractual	Value
	Options	Per Share		Terms (Years)	(in thousands)
Outstanding, December 31, 2018	3,257,801	$	11.99	9.26	$	7,119
Granted	822,975	18.09
Exercised	(20,544)	9.98
Cancelled/forfeited	(192,978)	12.15
Outstanding, March 31, 2019	3,867,254	$	13.29	8.78	$	37,345
Exercisable, March 31, 2019	438,023	$	10.15	4.85	$	5,440

The intrinsic values of outstanding and exercisable options were determined by multiplying the number of shares by the difference in exercise price of the options and the fair value of the common stock as of December 31, 2018 and March 31, 2019.

A summary of the status of the Company’s nonvested options as of and changes during the three months ended March 31, 2019, are presented below:



		Weighted-Average
	Stock	Grant Date
	Options	Fair Value
Outstanding, December 31, 2018	3,257,801	$	7.32
Granted	822,975	10.38
Vested	(458,567)	6.96
Cancelled/forfeited	(192,978)	8.10
Outstanding, March 31, 2019	3,429,231	$	8.06

A summary of RSUs activity under the Plan for the three months ended March 31, 2019, is presented below:



		Weighted
	Restricted	Average
	Stock	Grant Date
	Units	Fair Value
Outstanding, December 31, 2018	271,404	$	16.53
Granted	3,000	18.33
Forfeited	(17,534)	13.08
Outstanding, March 31, 2019	256,870	$	16.79

The following table summarizes stock-based compensation expense (in thousands) arising from the above Plan:



	Three Months Ended March 31,
	2019		2018
General and administrative	$	1,744	$	677
Research and development	254		329
	$	1,998	$	1,006

In addition, during the three months ended March 31, 2019, the Company capitalized $17,000 of stock-based compensation expense in capitalized software. Capitalized software is a component of intangible assets and is presented in the accompanying condensed balance sheets. See Note 4, Goodwill and Intangible Assets for capitalized software information.