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Stockholders' Equity | 9 Months Ended
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Sep. 30, 2019
Stockholders' Equity Note [Abstract] |
Stockholders' Equity | STOCKHOLDERS’ EQUITY 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 September 30, |  | Nine months ended September 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
Cost of sales | $ | 1 |  |  | $ | 8 |  |  | $ | 8 |  |  | $ | 27 |
Product development | 2 |  |  | 31 |  |  | 24 |  |  | 86 |
Selling, general, and administrative | 31 |  |  | 237 |  |  | 525 |  |  | 593 |
Total stock-based compensation | $ | 34 |  |  | $ | 276 |  |  | $ | 557 |  |  | $ | 706 |
Total unearned stock-based compensation was $0.2 million at September 30, 2019, compared to $1.1 million at September 30, 2018. These costs will be charged to expense and amortized on a straight-line basis in future periods. The weighted average period over which the unearned compensation at September 30, 2019 is expected to be recognized is approximately 2.2 years. Pursuant to agreements dated March 29, 2019, and effective April 1, 2019, Theodore L. Tewksbury III resigned as Chairman of the Board, Chief Executive Officer and President, and Jerry Turin resigned as Chief Financial Officer and Secretary. In accordance with their separation agreements, Theodore Tewksbury’s outstanding restricted stock units vested immediately and one-third of Jerry Turin’s outstanding restricted stock units vested immediately. Any stock options vested for Theodore Tewksbury as of April 1, 2019, shall remain exercisable for one year following. All unvested stock options were cancelled. The impact of the accelerated vesting of the restricted stock units and cancellation of the stock options was recognized during the three months ended March 31, 2019 and totaled $0.3 million. 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:
| Nine months ended September 30,
| 2019 |  | 2018
Fair value of options issued | $ | 0.32 |  |  | $ | 1.41 |
Exercise price | $ | 0.42 |  |  | $ | 1.97 |
Expected life of options (in years) | 6.3 |  |  | 5.9 |
Risk-free interest rate | 1.9 | % |  | 2.6 | %
Expected volatility | 90.0 | % |  | 84.2 | %
Dividend yield | 0.0 | % |  | 0.0 | %
A summary of option activity under all plans for the nine months ended September 30, 2019 is presented as follows:
| Number of Options |  | Weighted Average Exercise Price Per Share |  | Weighted Average Remaining Contractual Life (in years)
Balance at December 31, 2018 | 292,871 |  |  | $ | 3.78 |  |  |
Granted | 450,000 |  |  | 0.42 |  |  |
Canceled/forfeited | (151,993 | ) |  | 2.90 |  |  |
Expired | (27,525 | ) |  | 5.33 |  |  |
Balance at September 30, 2019 | 563,353 |  |  | $ | 1.26 |  |  | 9.1
Vested and expected to vest at September 30, 2019 | 420,864 |  |  | $ | 1.54 |  |  | 8.9
Exercisable at September 30, 2019 | 109,837 |  |  | $ | 4.63 |  |  | 6.3
Restricted stock units A summary of restricted stock unit activity under all plans for the nine months ended September 30, 2019 is presented as follows:
| Restricted Stock Units |  | Weighted Average Grant Date Fair Value |  | Weighted Average Remaining Contractual Life (in years)
Balance at December 31, 2018 | 546,858 |  |  | $ | 2.54 |  |  |
Granted | 27,187 |  |  | 1.04 |  |  |
Released | (377,894 | ) |  | 2.51 |  |  |
Canceled/forfeited | (152,441 | ) |  | 2.32 |  |  |
Balance at September 30, 2019 | 43,710 |  |  | $ | 2.62 |  |  | 1.2

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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