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Equity

3 Months Ended

Mar. 31, 2018

Equity [Abstract]

Equity

NOTE 8—EQUITY

(a) Acorn Stock Options

A summary of stock option activity for the three months ended March 31, 2018 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, 2017			1,401,489			$	3.45
Granted			60,000				0.23
Exercised			—
Forfeited or expired			(7,500	)		$	0.14
Outstanding at March 31, 2018			1,453,989			$	3.33				3.0 years			$	25
Exercisable at March 31, 2018			1,400,655			$	3.45				2.9 years			$	20

The options granted in 2018 were to directors (55,000) and a non-employee (5,000) with an exercise price of $0.23. 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			2.3	%
Expected term of options			6.7 years
Expected annual volatility			85	%
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 $7 and $13 for the three month-periods ended March 31, 2018 and March 31, 2017, respectively.

(c) Common Stock in Lieu of Board Fees

Each Director of the Company 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 2018 calendar year, Mr. Woolard elected to receive Common Stock in lieu of retainer and board fees of $17. Accordingly, Mr. Woolard was issued 18,479 shares of Common Stock in January 2018 for the first quarter of 2018, and 18,478 shares of Common Stock on April 2, 2018 for the second quarter of 2018. He is to receive an additional 18,478 shares on each of July 1 and October 1, 2018.

(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, 2017			2,654,423			$	1.46
Granted			—				—
Exercised			—				—
Forfeited or expired			—				—
Outstanding at March 31, 2018			2,654,423			$	1.46				1.9 years