Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2016

Stockholders' Equity Note [Abstract]

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	—		$	—

Summary of stock-based compensation expense

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

Schedule of valuation assumptions

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		%

Summary of option activity

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

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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