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Equity

9 Months Ended

Sep. 30, 2018

Equity [Abstract]

Equity

NOTE 8—EQUITY

(a) Acorn Stock Options

A summary of stock option activity for the nine months ended September 30, 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			175,000				0.32
Exercised			—
Forfeited or expired			(20,000	)		$	0.20
Outstanding at September 30, 2018			1,556,489			$	3.14			2.8 years		$	24
Exercisable at September 30, 2018			1,465,239			$	3.31			2.6 years		$	24

The options granted in 2018 were to directors (140,000 with an exercise price ranging from $0.23 to $0.35 per share), an employee (30,000 with an exercise price of $0.41 per share) and a non-employee (5,000 with an exercise price of $0.23 per share). The fair value of the options granted is $41 and was estimated on the grant date using the Black-Scholes option-pricing model with the following weighted average assumptions:

Risk-free interest rate			2.7	%
Expected term of options			6.6years
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 Unaudited Condensed Consolidated Statements of Operations was $21 and $22 for the nine-month periods ended September 30, 2018 and September 30, 2017, respectively, and $3 and $4 for the three-month periods ended September 30, 2018 and September 30, 2017, respectively. The balance of unamortized stock compensation as of September 30, 2018 was $40.

(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, one of our directors elected to receive Common Stock in lieu of retainer and board fees of $17. Accordingly, this director was issued 18,479 shares of Common Stock in January 2018 for the first quarter of 2018, 18,478 shares of Common Stock on April 2, 2018 for the second quarter of 2018 and 18,478 shares of Common Stock on July 2, 2018 for the third quarter of 2018. This director resigned from the Company’s Board of Directors on August 6, 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 September 30, 2018			2,654,423			$	1.46			1.4 years