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Stockholders' Equity
 3 Months Ended
Mar. 31, 2016
Stockholders' Equity Note [Abstract]  
Stockholders' Equity
STOCKHOLDERS’ EQUITY

Warrants

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

 
Warrants
Outstanding
 
Weighted
Average
Exercise
Price During
Period
Balance at December 31, 2015
14,250

 
$
4.30

Exercised
—

 
—

Canceled/forfeited
(7,500
)
 
4.30

Expired
—

 
—

Balance at March 31, 2016
6,750

 
$
4.30

 
 
 
 
Exercisable at March 31, 2016
—

 
$
—



Stock-based compensation

Stock-based compensation expense is attributable to stock options and restricted stock unit awards. For all stock-based awards, we recognize expense using a straight-line amortization method.

The following table summarizes stock-based compensation expense and the impact it had on operations for the periods presented (in thousands):

 
Three months ended
March 31,
 
2016
 
2015
Cost of sales
$
14

 
$
3

Product development
16

 
3

Selling, general, and administrative
226

 
106

Total stock-based compensation
$
256

 
$
112



Total unearned stock-based compensation was $2.2 million at March 31, 2016, compared to $1.1 million at March 31, 2015. These costs will be charged to expense and amortized on a straight-line basis in subsequent periods. The weighted average period over which the unearned compensation at March 31, 2016 is expected to be recognized is approximately 2.5 years.

Stock options

The fair value of each stock option is estimated on the date of grant using the Black-Scholes option pricing model. Estimates utilized in the calculation include the expected life of the option, risk-free interest rate, and expected volatility, and are further comparatively detailed as follows:

 
Three months ended
March 31,
 
2016
 
2015
Fair value of options issued
$
5.59

 
$
4.07

Exercise price
$
7.42

 
$
5.47

Expected life of option (in years)
5.8

 
5.9

Risk-free interest rate
1.6
%
 
1.7
%
Expected volatility
93.3
%
 
91.3
%
Dividend yield
0.0
%
 
0.0
%


A summary of option activity under all plans for the three months ended March 31, 2016 is presented as follows:

 
Number of
Options
 
Weighted
Average
Exercise
Price Per
Share
 
Weighted
Average
Remaining
Contractual
Life (in years)
Balance at December 31, 2015
602,207

 
$
8.58

 
 
Granted
123,790

 
7.42

 
 
Exercised
(3,761
)
 
3.77

 
 
Canceled/forfeited
(6,506
)
 
12.12

 
 
Expired
—

 
—

 
 
Balance at March 31, 2016
715,730

 
$
8.38

 
8.2
 
 
 
 
 
 
Vested and expected to vest at March 31, 2016
656,646

 
$
8.50

 
8.1
 
 
 
 
 
 
Exercisable at March 31, 2016
382,787

 
$
9.01

 
7.3

Restricted stock units

A summary of restricted stock unit activity under all plans for the three months ended March 31, 2016 is presented as follows:

 
Restricted
Stock Units
 
Weighted
Average
Grant
Date
Fair Value
 
Weighted
Average
Remaining
Contractual
Life (in years)
Balance at December 31, 2015
57,500

 
$
7.31

 
 
Granted
185,385

 
7.09

 
 
Canceled/forfeited
(5,130
)
 
5.50

 
 
Balance at March 31, 2016
237,755

 
$
7.18

 
2.4