6. Common Shares

Public Offering, August 2016

During August 2016, we closed a public offering of 12,362,500 units (the “Units”), which included 1,612,500 Units issued pursuant to the full exercise of the underwriters’ over-allotment option, for net proceeds of $15,883 (the “2016 Offering”). Each Unit consisted of one common share in the capital of the Company (“Common Share”) and one-half of one Common Share purchase warrant (each full warrant, a “2016 Warrant”). A total of 6,514,625 2016 Warrants were issued, including 333,375 broker warrants issued to the underwriters. Each 2016 Warrant entitles the holder thereof to purchase one Common Share at a price of $1.92 per Common Share (subject to adjustment in certain circumstances) and is exercisable for a period of 36 months from the closing of the 2016 Offering. The 2016 Warrants, which are classified as equity, had a fair value of $3,320 at the time of the 2016 Offering. The fair value of warrants issued during the nine months ended September 30, 2016 was estimated at the grant date using the Black-Scholes option pricing model using the following assumptions: 1) expected volatility of 89%, 2) risk-free rate of 0.86%, 3) expected life of 3 years, and 4) stock price on the issue date of $1.13 per Common Share.

Warrants

Warrant activity is summarized in the following table:


		Weighted		Weighted
		average		average
	Warrants	exercise price		remaining life
	outstanding	per share		(yrs.)	Intrinsic value
As of December 31, 2015	—	$	—	—	$	—
Issued	6,514,625		1.92	2.9		—
As of September 30, 2016	6,514,625	$	1.92	2.9	$	—

Stock-Based Compensation

Under our Stock Option Plan (the “Plan”) and our Long-Term Equity Incentive Plan (the “LTIP”), we may grant options and/or restricted stock units (“RSUs”) or restricted stock awards to our directors, officers, employees and consultants. The combined maximum number of Common Shares that may be reserved for issuance under the Plan and the LTIP is a variable number equal to 10% of the issued and outstanding Common Shares on a non-diluted basis. Options and RSUs under the Plan and LTIP, respectively, are granted from time to time at the discretion of the Board of Directors of the Company (“Board”), with vesting periods and other terms as determined by the Board. Stock-based compensation expense for the three and nine months ended September 30, 2016 and 2015 is as follows:


	Three Months Ended September 30,				Nine months ended September 30,
	2016		2015		2016		2015
Stock options	$	7	$	2	$	12	$	6
Restricted stock units		161		218		464		681
	$	168	$	220	$	476	$	687

As of September 30, 2016, stock options and RSUs had unrecognized compensation expense of $49 and $740, respectively, which is expected to be recognized over a weighted average period of 1.39 and 1.55 years, respectively.

Stock Options

A summary of options under the Plan as of September 30, 2016 is set forth in the following table:


		Weighted average		Weighted average	Aggregate
	Number of	exercise price		remaining	intrinsic
	options	per option		contractual term	value
Outstanding - December 31, 2015	2,257,500	$	1.60	2.02	$	—
Granted	50,000		1.11
Exercised	(65,500)		0.39
Expired	(667,500)		2.87
Outstanding - September 30, 2016	1,574,500	$	1.10	2.01	$	740

Exercisable - September 30, 2016	1,278,250	$	1.24	1.85	$	568

A summary of our unvested stock options as of September 30, 2016 is set forth in the following table:


				Weighted
		Weighted		average
		average		remaining
		grant-date		amortization
	Number of	fair value		period
	options	per option		(Years)
Unvested - December 31, 2015	246,250	$	0.22
Granted	50,000		0.69
Unvested - September 30, 2016	296,250	$	0.30	1.39

The fair value of stock options granted during the nine months ended September 30, 2016 was estimated at the grant date using the Black-Scholes option pricing model using the following assumptions:



Expected volatility	77.68	%
Risk-free interest rate	1.12	%
Expected life (years)	5
Dividend yield	N/A
Forfeiture assumption	0	%

Restricted Stock Units

The following table summarizes the RSUs outstanding under the LTIP as of September 30, 2016:


		Weighted average
	Number	grant-date fair
	of units	value per unit
Unvested - December 31, 2015	4,085,446	$	0.44
Vested	(2,475,046)		0.50
Granted	1,057,987		0.84
Unvested - September 30, 2016	2,668,387	$	0.55

A portion of the RSU awards vest on a fixed future date provided the recipient continues to be affiliated with Vista on that date. Other RSU awards vest subject to certain performance and market criteria, including the accomplishment of certain corporate objectives and the Company’s share price performance. The minimum vesting period for RSUs is one year.