Stock-based Compensation Plans and Awards
 9 Months Ended
Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation Plans and Awards

9. Stock-based Compensation Plans and Awards

Stock-based Compensation Expense

Stock-based compensation expense related to all employee and non-employee stock-based awards recognized in the condensed consolidated statements of operations was as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended September 30, 

 

Nine months ended September 30, 

 

 

    

2016

    

2015 (1)

    

2016

    

2015 (1)

 

Service costs

 

$
142

 

$
182

 

$
1,054

 

$
806

 

Sales and marketing

 

 
145

 

 
159

 

 
586

 

 
511

 

Product development

 

 
290

 

 
397

 

 
1,206

 

 
1,576

 

General and administrative

 

 
1,103

 

 
821

 

 
3,272

 

 
2,790

 

Total stock-based compensation

 

$
1,680

 

$
1,559

 

$
6,118

 

$
5,683

 

(1)

Certain 2015 personnel costs, including stock-based compensation, were reclassified out of general and administrative to service costs, sales and marketing and product development to conform to 2016 presentation. See Note 2 for additional information.

During the nine months ended September 30, 2016, we accelerated the vesting of certain stock awards in connection with the sale of our Cracked business, resulting in approximately $0.8 million in stock-based compensation expense.

Award Activity

Stock Options

Stock option activity is as follows (in thousands):

 

 

 

 

 

 

Number of

 

 

    

options

 

 

 

outstanding

 

Outstanding at December 31, 2015

 
3,199

 

Options granted

 
253

 

Options exercised

 
(50)

 

Options forfeited or cancelled

 
(520)

 

Outstanding at September 30, 2016

 
2,882

 

Restricted Stock Units

Restricted stock unit activity is as follows (in thousands):

 

 

 

 

 

 

Number of

 

 

    

shares

 

Unvested at December 31, 2015

 
977

 

Granted

 
1,885

 

Vested

 
(509)

 

Forfeited

 
(356)

 

Unvested at September 30, 2016

 
1,997

 

Employee Stock Purchase Plan

 

In May 2011, we commenced our first offering under the Employee Stock Purchase Plan (“ESPP”), which allows eligible employees to purchase, through payroll deductions, a limited amount of our common stock at a 15% discount to the lower of market price as of the beginning or ending of each six-month purchase period. Participants can authorize payroll deductions for amounts up to the lesser of 15% of their qualifying wages or the statutory limit under the U.S. Internal Revenue Code. We previously suspended the ESPP after the November 2015 purchase after considering the benefits and participation rates in the ESPP. We restarted offerings under the ESPP in May 2016. The ESPP currently provides for a  12-month offering period which is comprised of two consecutive six-month purchase periods, one from May to November and the other from November to May. A maximum of 500 shares of common stock may be purchased by each participant during each six-month purchase period. The fair value of the ESPP options granted is determined using a Black-Scholes-Merton model and is amortized over the remaining life of the 12-month offering period of the ESPP. The Black-Scholes-Merton model included an assumption for expected volatility of between 41% and 48% for each of the two purchase periods in the current offering period. The expense recognized in relation to the ESPP was not material for each of the nine month periods ended September 30, 2016 and 2015. Approximately 1.7 million shares of common stock remained authorized for issuance under the ESPP at September 30, 2016.