XML 93 R12.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Stock-Based Compensation | 9 Months Ended
--- | ---
Sep. 30, 2017
Stock-Based Compensation |
Stock-Based Compensation | Note 7. Stock-Based Compensation The expense relating to stock options is recognized on a straight-line basis over the requisite service period, usually the vesting period, based on the grant-date fair value. The unamortized compensation cost, net of expected forfeitures, as of September 30, 2017 was $1.1 million related to stock options and is expected to be recognized as expense over a weighted-average period of approximately 1.9 years. The expense related to restricted stock units (RSUs) is recognized over a three-to-five year vesting period and is based on the fair value of the underlying stock on the dates of grant. The unamortized compensation cost, net of expected forfeitures, as of September 30, 2017 was $0.6 million related to RSUs and is expected to be recognized as expense over a weighted-average period of approximately 1.4 years. For the three and nine months ended September 30, 2017 and 2016, there were no excess tax benefits associated with the exercise of stock options due to the Company’s loss positions. Valuation Assumptions There were no stock options granted during the three months ended September 30, 2017. The fair value of the Company’s stock options granted for the nine months ended September 30, 2017 and 2016 was estimated on the grant dates using the Black-Scholes valuation option-pricing model with the following assumptions:
| Nine Months Ended |
| September 30, |
| 2017 |  | 2016 |
Risk-free interest rate | 1.6% |  | 1.0% - 1.2% |
Volatility | 70.2% |  | 61.4% - 63.8% |
Expected life (years) | 4.0 |  | 4.0 - 5.0 |
Dividend yield | 0% |  | 0% |
The risk-free interest rate was derived from the Daily Treasury Yield Curve Rates, as published by the U.S. Department of the Treasury as of the grant date for terms equal to the expected terms of the options. The expected volatility was based on the historical volatility of the Company’s stock price over the expected term of the options. The expected term of options granted was derived from historical data based on employee exercises and post‑vesting employment termination behavior. A dividend yield of zero is applied because the Company has never paid dividends and has no intention to pay dividends in the near future. The stock‑based compensation expense recorded is adjusted based on estimated forfeiture rates. An annualized forfeiture rate has been used as a best estimate of future forfeitures based on the Company’s historical forfeiture experience. The stock‑based compensation expense will be adjusted in later periods if the actual forfeiture rate is different from the estimate. Common Stock Options and Restricted Stock A summary of the option and RSU activity under the Company’s Amended and Restated 2010 Equity Incentive Plan (the Plan) is presented below (in thousands, except exercise price):
|  |  |  | Options outstanding |
|  |  |  |  |  | Weighted |
|  | Shares |  |  |  | Average |
|  | Available |  | Number of |  | Exercise |
|  | for Grant |  | Shares |  | Prices |
Balance at January 1, 2017 |  | 114 |  | 522 |  | $ | 13.88 |
Additional shares authorized under the Plan |  | 50 |  | — |  |  | — |
RSUs cancelled and returned to the Plan |  | 5 |  | — |  |  | — |
Options granted |  | (1) |  | 1 |  | $ | 2.36 |
Options cancelled and returned to the Plan |  | 15 |  | (15) |  | $ | 6.94 |
Balance at March 31, 2017 |  | 183 |  | 508 |  | $ | 14.06 |
RSUs cancelled and returned to Plan |  | 37 |  | — |  |  | — |
Options cancelled and returned to Plan |  | 172 |  | (172) |  | $ | 10.20 |
Balance at June 30, 2017 |  | 392 |  | 336 |  | $ | 16.04 |
RSUs granted |  | (407) |  | — |  |  | — |
RSUs cancelled and returned to Plan |  | 8 |  | — |  |  | — |
Options cancelled and returned to Plan |  | 88 |  | (88) |  | $ | 14.83 |
Balance at September 30, 2017 |  | 81 |  | 248 |  | $ | 16.47 |
The Company also has awarded options to new employees outside of the Plan and may continue to do so, as material inducements to the acceptance of employment with the Company, as permitted under the Listing Rules of the Nasdaq Stock Market. These grants must be approved by the compensation committee of the board of directors, a majority of the independent directors or, below a specified share level, by an authorized executive officer. As of September 30, 2017, there were no awards outstanding that had been granted outside of the Plan A summary of RSU activity under the Plan is presented below (in thousands, except for fair value):
|  |  |  | Weighted |
|  |  |  | Average |
|  | Number of |  | Grant-Date |
|  | Shares |  | Fair Value |
Non-vested shares at January 1, 2017 |  | 148 |  | $ | 8.13 |
Vested |  | (54) |  | $ | 11.64 |
Cancelled |  | (5) |  | $ | 5.30 |
Non-vested shares at March 31, 2017 |  | 89 |  | $ | 6.16 |
Cancelled |  | (37) |  | $ | 5.75 |
Non-vested shares at June 30, 2017 |  | 52 |  | $ | 6.46 |
Granted |  | 407 |  | $ | 0.93 |
Vested |  | (66) |  | $ | 0.95 |
Cancelled |  | (8) |  | $ | 5.30 |
Non-vested shares at September 30, 2017 |  | 385 |  | $ | 1.58 |
In the nine months ended September 30, 2017, the Company paid approximately $22,000 for employee income taxes related to net share settlement of vested RSUs. The total intrinsic value of the RSUs outstanding as of September 30, 2017 was $0.4 million. The following table summarizes significant ranges of outstanding and exercisable options as of September 30, 2017 (in thousands, except contractual life and exercise price):
|  | Options Outstanding |  | Options Exercisable |  |  |  |
|  |  |  | Weighted |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Average |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Remaining |  | Weighted |  |  |  | Weighted |  |  |  |
|  |  |  | Contractual |  | Average |  |  |  | Average |  | Aggregate |
|  | Number |  | Life |  | Exercise |  | Number |  | Exercise |  | Intrinsic |
Range of Exercise Price |  | Outstanding |  | (in Years) |  | Price |  | Exercisable |  | Price |  | value |
$2.36 - $7.19 |  | 19 |  | 6.44 |  | $ | 5.07 |  | 12 |  | $ | 5.30 |  |  |  |
$7.20 - $16.99 |  | 122 |  | 8.35 |  | $ | 7.20 |  | 49 |  | $ | 7.20 |  |  |  |
$17.00 - $20.49 |  | 4 |  | 3.79 |  | $ | 17.00 |  | 4 |  | $ | 17.00 |  |  |  |
$20.50 - $30.89 |  | 45 |  | 7.42 |  | $ | 20.50 |  | 39 |  | $ | 20.50 |  |  |  |
$30.90 - $41.89 |  | 41 |  | 0.61 |  | $ | 36.44 |  | 41 |  | $ | 33.41 |  |  |  |
$41.90 - $46.20 |  | 17 |  | 4.16 |  | $ | 44.01 |  | 17 |  | $ | 44.01 |  |  |  |
$2.36 - $46.20 |  | 248 |  | 6.40 |  | $ | 16.47 |  | 162 |  | $ | 21.34 |  | $ | — |
Vested and expected to vest |  | 240 |  | 6.32 |  | $ | 16.77 |  |  |  |  |  |  | $ | — |
Exercisable |  | 162 |  | 5.11 |  | $ | 21.34 |  |  |  |  |  |  | $ | — |
There were no stock options exercised during the nine months ended September 30, 2017 or 2016. Employee Stock Purchase Plan In June 2010, the Company’s stockholders approved the 2010 Employee Stock Purchase Plan (ESPP). A total of 200,000 shares of common stock were initially reserved for issuance under the ESPP in 2010. On September 1, 2010, the Company commenced the first offering period under the ESPP. In May 2015, the Company’s stockholders approved an amendment increasing the number of shares reserved for issuance by 200,000 shares. The ESPP, which is intended to qualify under Section 423 of the Internal Revenue Code, is administered by the board of directors or the compensation committee of the board of directors. The ESPP provides that eligible employees may purchase up to $25,000 worth of the Company’s common stock annually over the course of two six-month offering periods. The purchase price to be paid by participants is 85% of the price per share of the Company’s common stock either at the beginning or the end of each six-month offering period, whichever is less. In February 2017, the Compensation Committee of the Board of Directors elected to suspend the ESPP plan. ESPP Plan participants were refunded their payroll contributions for the then open purchase period.

X
- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=65895303&loc=d3e17540-113929 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68057994&loc=d3e25284-112666 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14) -URI http://asc.fasb.org/extlink&oid=27013229&loc=d3e301413-122809 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration