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Stock-based Compensation (Tables)
3 Months Ended
Mar. 31, 2017
Stock-based Compensation  
Compensation costs related to stock-based awards

The following table summarizes compensation costs related to our stock-based awards (in thousands, except per share data):

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31, 

 

 

    

2017

    

2016

 

Cost of revenue

 

$

 8

 

$

 5

 

Selling, general and administrative

 

 

256

 

 

200

 

Research and development

 

 

48

 

 

48

 

Total stock-based compensation

 

 

312

 

 

253

 

Tax effect on stock-based compensation

 

 

 —

 

 

 —

 

Net effect on net income

 

$

312

 

$

253

 

 

Weighted-average assumptions

The fair values of our stock options granted to employees for the three months ended March 31, 2017 and 2016 were estimated using the following weighted-average assumptions:

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Three Months Ended

 

 

 

 

March 31, 

 

March 31, 

 

 

 

    

2017

    

2016

    

 

Expected term (in years)

 

5.9

 

4.0

 

 

Volatility

 

46.71

%  

49.21

%  

 

Expected dividend

 

 —

%  

 —

%  

 

Risk-free interest rate

 

2.08

%  

1.38

%  

 

 

Summary of stock option activity

The following table summarizes the stock option transactions during the three months ended March 31, 2017 (in thousands, except per share data):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-

 

 

 

 

 

    

 

    

 

 

    

average

    

 

 

 

 

 

 

 

Weighted-

 

Remaining

 

 

 

 

 

 

Number of

 

average

 

Contractual

 

Aggregate

 

 

 

Options

 

Exercise

 

Life

 

Intrinsic

 

Stock Options

    

Outstanding

    

Price

    

(in years)

    

Value

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of January 1, 2017

 

3,294

 

$

3.38

 

7.23

 

$

5,301

 

Granted

 

60

 

 

5.95

 

 

 

 

 

 

Exercised

 

(242)

 

 

3.13

 

 

 

 

 

 

Canceled and expired

 

(14)

 

 

2.18

 

 

 

 

 

 

Balance as of March 31, 2017

 

3,098

 

$

3.46

 

7.17

 

$

7,304

 

Options vested as of March 31, 2017 and unvested options expected to vest, net of forfeitures

 

3,032

 

$

3.44

 

7.13

 

$

7,194

 

Options exercisable as of March 31, 2017

 

1,609

 

$

3.40

 

5.71

 

$

3,896

 

 

Restricted stock awards

A summary of activity related to restricted stock awards for the three months ended March 31, 2017 is presented below (in thousands, except per share data):

 

 

 

 

 

 

 

 

 

    

 

    

Weighted-Average

 

 

 

 

 

Grant Date

 

Stock Awards

    

Shares

    

Fair Value

 

Non-vested as of January 1, 2017

 

325

 

$

3.27

 

Granted

 

 —

 

$

 —

 

Vested

 

 —

 

$

 —

 

Forfeited

 

 —

 

$

 —

 

Non-vested as of  March 31, 2017

 

325

 

$

3.27