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Equity

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Equity

NOTE 7—EQUITY

(a) Acorn Stock Options

A summary of stock option activity for the nine months ended September 30, 2017 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, 2016			2,050,369			$	3.62
Granted			90,000				0.25
Exercised			—
Forfeited or expired			(700,380	)		$	3.51
Outstanding at September 30, 2017			1,439,989			$	3.47				3.3 years			$	8
Exercisable at September 30, 2017			1,387,487			$	3.57				3.2 years			$	7

The options granted in 2017 were to directors with exercise prices ranging from $0.18 to $0.36. The fair value of the options granted was estimated on the grant date using the Black-Scholes option-pricing model with the following weighted average assumptions:

Risk-free interest rate			2.2	%
Expected term of options			6.6 years
Expected annual volatility			83	%
Expected dividend yield			—	%

(b) Stock-based Compensation Expense

Stock-based compensation expense included in Selling, general and administrative expenses in the Company’s Condensed Statements of Operations was $22 and $243 for the nine-month periods ended September 30, 2017 and September 30, 2016, respectively, and $4 and $9 for the three month-periods ended September 30, 2017 and September 30, 2016, respectively.

(c) Common Stock in Lieu of Board Fees

Each Director may elect by written notice delivered on or before the first day of each calendar year whether to receive, in lieu of some or all of his or her retainer and board fees, that number of shares of Company Common Stock as shall have a value equal to the applicable retainer and board fees, based on the closing price of the Company’s Common Stock on its then-current trading platform or exchange on the last trading day immediately preceding the first day of the applicable year. Once made, the election shall be irrevocable for such election year and the shares subject to the election shall vest and be issued one-fourth upon the first day of the election year and one-fourth as of the first day of each of the second through fourth calendar quarters thereafter during the remainder of the election year. For the 2017 calendar year, Messrs. Woolard and Jackson elected to receive Common Stock in lieu of retainer and board fees of $17 and $15, respectively. Accordingly, Messrs. Woolard and Jackson were issued for the first nine months of 2017 70,833 and 62,501 shares of Common Stock, respectively. They received a combined 44,444 shares on October 2, 2017.

(d) 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, 2016			2,654,423			$	1.46
Granted			—				—
Exercised			—				—
Forfeited or expired			—				—
Outstanding at September 30, 2017			2,654,423			$	1.46				2.4 years