XML 43 R16.htm IDEA: XBRL DOCUMENT v3.4.0.3
Equity
 3 Months Ended
Mar. 31, 2016
Equity [Abstract]  
Equity

NOTE 9—EQUITY

 

(a) Acorn Stock Options

 

A summary of stock option activity for the three months ended March 31, 2016 is as follows:

 

   

 

 

Number

of Options

(in shares)

    

Weighted

Average

Exercise

Price Per Share

     Weighted Average Remaining Contractual Life    

 

 

Aggregate Intrinsic Value

  
Outstanding at December 31, 2015     2,364,918     $ 3.51                  
Granted     —       —                  
Exercised     —       —                  
Forfeited or expired     (66,666 )   $ 3.70                  
Outstanding at March 31, 2016     2,298,252     $ 3.50       5.1 years     $ —  
Exercisable at March 31, 2016     2,186,583     $ 3.58       5.0 years     $ —  

 

In connection with the January 28, 2016 resignation of the Company’s then President and CEO (John A. Moore), all of Mr. Moore’s unvested options at that time became fully vested.

 

(b) Stock-based Compensation Expense

 

Stock-based compensation expense included in Selling, general and administrative expenses in the Company’s Condensed Statements of Operations for the three month periods ended March 31, 2015 and 2016 was $208 and $220, respectively. In addition, $6 was recorded in the Company’s USSI subsidiary included in Discontinued Operations for the three month period ended March 31, 2015. See Note 3(b).

 

(c) Warrants

 

The Company previously issued warrants at exercise prices equal to or greater than market value of the Company’s common stock at the date of issuance. A summary of warrant activity follows:

 

   

Number

of Warrants

(in shares)

     Weighted Average Exercise Price Per Share     Weighted Average Remaining Contractual Life  
Outstanding at December 31, 2015     2,619,423     $ 1.48          
Granted     35,000       0.13          
Exercised     —       —          
Forfeited or expired     —       —          
Outstanding at March 31, 2016     2,654,423     $ 1.46       3.9 years  

 

The fair value of the warrants granted ($0.08 per warrant during the three months ended March 31, 2016) was estimated on the grant dates using the Black-Scholes option-pricing model with the following weighted average assumptions:

 

Risk-free interest rate     1.79%  
Expected term of warrants     7.0 years  
Expected annual volatility     78%  
Expected dividend yield     —%  

  

(d) Vested Share Rights – see Subsequent Events (Note 12)