Stock-based Compensation
 9 Months Ended
Sep. 30, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-based Compensation

9.

Stock-based Compensation

The Company has stock-based employee compensation plans for which compensation cost is recognized in its financial statements. The cost is measured at the grant date, based on the fair value of the award, determined using the Black-Scholes option pricing model, and is recognized as an expense over the employee’s requisite service period (generally the vesting period of the equity award).

No income tax deduction is allowed for incentive stock options (“ISOs”). Accordingly, no deferred income tax asset is recorded for the potential tax deduction related to these options. Expense related to stock option grants of non-qualified stock options (“NSOs”) results in a temporary difference, which gives rise to a deferred tax asset.

Total stock-based compensation expense included in the accompanying condensed consolidated statements of operations for the periods presented, is as follows (in thousands):

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Technology and development

 

$

190

 

 

$

238

 

 

$

604

 

 

$

681

 

Sales and marketing

 

 

142

 

 

 

173

 

 

 

500

 

 

 

604

 

General and administrative

 

 

273

 

 

 

269

 

 

 

824

 

 

 

819

 

Total stock-based compensation expense

 

$

605

 

 

$

680

 

 

$

1,928

 

 

$

2,104

 

 

Stock Option Activity – A summary of the stock option activity for the nine months ended September 30, 2017 is presented below:

 

 

 

Number of

Shares

 

 

Weighted

Average

Exercise

Price

 

 

Weighted

Average

Remaining

Contractual

Term (years)

 

 

Aggregate

Intrinsic

Value (in

thousands)

 

Outstanding at January 1, 2017

 

 

8,756,174

 

 

$

2.53

 

 

 

 

 

 

 

 

 

Granted

 

 

1,486,400

 

 

 

3.21

 

 

 

 

 

 

 

 

 

Exercised

 

 

(858,438

)

 

 

2.24

 

 

 

 

 

 

 

 

 

Forfeited or expired

 

 

(678,005

)

 

 

3.64

 

 

 

 

 

 

 

 

 

Outstanding at September 30, 2017

 

 

8,706,131

 

 

$

2.59

 

 

 

7.16

 

 

$

3,267

 

Vested and expected to vest at September 30, 2017

 

 

8,380,530

 

 

$

2.58

 

 

 

7.09

 

 

$

3,173

 

Vested and exercisable at September 30, 2017

 

 

4,959,229

 

 

$

2.59

 

 

 

6.13

 

 

$

1,934

 

 

Aggregate intrinsic value represents the difference between the Company’s closing stock price of its common stock and the exercise price of outstanding, in-the-money options. The Company’s closing stock price as reported on the Nasdaq Global Market as of September 30, 2017 was $2.70 per share. The total intrinsic value of options exercised for the nine months ended September 30, 2017 was $1.0 million. The weighted average fair value of options issued during the nine months ended September 30, 2017 amounted to $1.55 per option share.

As of September 30, 2017, the unrecognized compensation cost related to non-vested options granted, for which vesting is probable, and adjusted for estimated forfeitures, was approximately $4.4 million. This cost is expected to be recognized over a weighted-average period of 2.6 years. The total fair value of shares vested was $1.5 million for the nine months ended September 30, 2017.

In addition, the Company may, from time to time, grant Restricted Stock Units (“RSUs”) to its employees. A summary of RSU activity for the nine months ended September 30, 2017 is presented below:

 

 

 

Number of Shares

 

 

Weighted Average

Fair Value

 

Unvested—January 1, 2017

 

 

319,889

 

 

$

2.71

 

Granted

 

 

—

 

 

 

—

 

Released

 

 

(174,236

)

 

 

2.51

 

Forfeited

 

 

(18,427

)

 

 

2.96

 

Unvested—September 30, 2017

 

 

127,226

 

 

$

2.95

 

Unvested expected to vest—September 30, 2017

 

 

123,975

 

 

$

2.93