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8. STOCK- BASED COMPENSATION | 3 Months Ended
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Jun. 30, 2017
STOCK- BASED COMPENSATION |
NOTE 8-STOCK- BASED COMPENSATION | NOTE 8—STOCK-BASED COMPENSATION As of June 30, 2017, 5,383,995 shares of common stock were available for grant under the Company’s 2016 Equity Incentive Plan. The following table summarizes the Company’s stock option activities for the three months ended June 30, 2017:
|  |  |  |  |  | Weighted |  |  |  |  |  |  |
|  |  |  | Number of Shares |  | Average |  | Weighted |  |  |  |
|  | Shares |  | Underlying |  | Remaining |  | Average |  |  |  |
|  | Available for |  | Options |  | Contractual |  | Exercise |  | Intrinsic |
|  | Grant |  | Outstanding |  | Life (Years) |  | Price |  | Value |
Balance at March 31, 2017 |  | 5,464,185 |  | 7,622,830 |  |  |  | $ | 5.09 |  |  |  |
Granted |  | (86,990) |  | 86,990 |  |  |  | $ | 7.40 |  |  |  |
Exercised |  | — |  | (330,321) |  |  |  | $ | 4.59 |  | $ | 1,110,705 |
Forfeited |  | 6,800 |  | (47,675) |  |  |  | $ | 4.99 |  |  |  |
Balance at June 30, 2017 |  | 5,383,995 |  | 7,331,824 |  |  |  | $ | 5.14 |  |  |  |
Options vested and exercisable |  |  |  | 4,753,789 |  | 4.09 |  | $ | 5.16 |  | $ | 12,980,279 |
Options vested and expected to vest |  |  |  | 7,276,640 |  | 5.63 |  | $ | 5.14 |  | $ | 19,975,008 |
The weighted average fair value per underlying share of options granted during the three months ended June 30, 2017 and 2016 was $2.58 and $1.17, respectively. Options outstanding by exercise price at June 30, 2017 were as follows:
|  |  |  |  | Number of |  | Options Outstanding |  | Options Exercisable |
|  |  |  |  | Shares |  | Weighted |  | Weighted Average |  |  |  | Weighted |
|  |  |  |  | Underlying |  | Average |  | Remaining |  | Number |  | Average |
|  |  |  |  | Options |  | Exercise |  | Contractual |  | Vested and |  | Exercise |
Exercise Price |  | Outstanding |  | Price |  | Life (Years) |  | Exercisable |  | Price |
$ | 2.43 | - | 3.40 |  | 757,620 |  | $ | 3.24 |  | 4.20 |  | 530,887 |  | $ | 3.17 |
$ | 3.43 | - | 4.00 |  | 1,064,296 |  | $ | 3.81 |  | 2.93 |  | 946,702 |  | $ | 3.83 |
$ | 4.17 | - | 4.90 |  | 905,287 |  | $ | 4.53 |  | 5.07 |  | 817,862 |  | $ | 4.54 |
$ | 4.92 | - | 4.99 |  | 1,211,981 |  | $ | 4.98 |  | 8.33 |  | 205,454 |  | $ | 4.96 |
$ | 5.13 | - | 5.28 |  | 776,973 |  | $ | 5.24 |  | 7.78 |  | 108,258 |  | $ | 5.20 |
$ | 5.34 | - | 6.00 |  | 761,081 |  | $ | 5.75 |  | 5.14 |  | 718,483 |  | $ | 5.77 |
$ | 6.16 | - | 6.54 |  | 866,963 |  | $ | 6.35 |  | 6.07 |  | 570,653 |  | $ | 6.43 |
$ | 6.61 | - | 7.00 |  | 787,253 |  | $ | 6.82 |  | 5.09 |  | 742,110 |  | $ | 6.84 |
$ | 7.40 |  |  |  | 86,990 |  | $ | 7.40 |  | 9.85 |  | - |  | $ | - |
$ | 9.20 |  |  |  | 113,380 |  | $ | 9.20 |  | 3.44 |  | 113,380 |  | $ | 9.20 |
|  |  |  |  | 7,331,824 |  | $ | 5.14 |  | 5.65 |  | 4,753,789 |  | $ | 5.16 |
The following table summarizes stock-based compensation expense by line item in the Condensed Consolidated Statements of Operations, all relating to employee stock plans:
|  | Three Months Ended June 30, |
|  | 2017 |  | 2016 |
Cost of revenues |  | $ | 47 |  | $ | 53 |
Research and development |  |  | 267 |  |  | 223 |
Selling, general and administrative |  |  | 164 |  |  | 167 |
Total |  | $ | 478 |  | $ | 443 |
As stock-based compensation expense recognized in the Condensed Consolidated Statement of Operations is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures in accordance with authoritative guidance. The Company estimates forfeitures at the time of grant and revises the original estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. No tax benefit related to stock-based compensation was recognized in the three months ended June 30, 2017 or June 30, 2016 due to a full valuation allowance. There were no windfall tax benefits realized from exercised stock options in either of these periods. Compensation cost capitalized within inventory at June 30, 2017 was immaterial. As of June 30, 2017, the Company’s total unrecognized compensation cost was $3.2 million, which will be recognized over a weighted average period of 2.23 years. The Company calculated the fair value of stock-based awards in the periods presented using the Black-Scholes option pricing model and the following weighted average assumptions:
|  | Three Months Ended June 30, |
|  | 2017 |  | 2016 |
|  | (In thousands) |
Stock Option Plans: |  |  |  |  |  |  |  |  |  |  |
Risk-free interest rate |  |  |  | 1.91 | % |  |  |  | 1.26 | % |
Expected life (in years) |  |  |  | 5.00 |  |  |  |  | 5.00 |  |
Volatility |  |  |  | 36.5 | % |  |  |  | 34.8 | % |
Dividend yield |  |  |  | — | % |  |  |  | — | % |
Employee Stock Purchase Plan: |  |  |  |  |  |  |  |  |  |  |
Risk-free interest rate |  |  |  | 1.04 | % |  |  |  | 0.38 | % |
Expected life (in years) |  |  |  | 0.50 |  |  |  |  | 0.50 |  |
Volatility |  |  |  | 51.1 | % |  |  |  | 39.6 | % |
Dividend yield |  |  |  | — | % |  |  |  | — | % |

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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 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=65895303&loc=d3e17540-113929 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68057994&loc=d3e25284-112666 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14) -URI http://asc.fasb.org/extlink&oid=27013229&loc=d3e301413-122809 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 + Details
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