Equity

Stock Repurchase Program

In March 2017, our Board of Directors authorized a stock repurchase program under which the Company, at the discretion of management, could repurchase up to $15.0 million in aggregate cost of our outstanding common stock through September 30, 2017. This authorization has expired. As of September 30, 2017, 541,177 shares, at an aggregate cost of $4.3 million had been repurchased under the authorization. We account for stock repurchases using the cost method. Cost includes fees charged in connection with acquiring the outstanding common stock.

In January 2016, our Board of Directors authorized a stock repurchase program under which the Company, at the discretion of management, could repurchase up to $6.0 million in aggregate cost of our outstanding common stock through June 30, 2016 (the “January Authorization”). In May 2016, our Board of Directors rescinded the January Authorization and authorized a new stock repurchase program under which the Company, at the discretion of management, could repurchase up to $10.0 million in aggregate cost of our outstanding common stock through October 31, 2016 (the “May Authorization”). At December 31, 2016, 673,700 shares, at an aggregate cost of $4.1 million, had been repurchased under the January Authorization and 568,500 shares, at an aggregate cost of $5.3 million, had been repurchased under the May Authorization. The May Authorization expired in October 2016.

Share-Based Compensation Expense

For the three and nine months ended September 30, 2017 and 2016, we recognized share-based compensation expense related to employees as follows (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Cost of revenue	$	41	$	16	$	117	$	78
General and administrative	580		378		1,698		1,635
Sales and marketing	191		218		628		502
Research and development	204		163		693		425
Total share-based compensation expense	$	1,016	$	775	$	3,136	$	2,640

Stock Option Plan

In June 2016, our stockholders approved the 2016 Incentive Plan (the “Plan”), that permits the grant of stock options, stock appreciation rights (“SARs”), restricted stock (“RS” or “RSA”), restricted stock units (“RSUs”), performance units, performance shares, and other stock-based awards to employees, officers, directors, and consultants. Prior to the approval of the Plan, we maintained the Amended and Restated 2008 Equity Incentive Plan (the “Prior Plan”). Stock-based awards granted under the Plan and the Prior Plan, generally vest over four years and expire no more than ten years after the date of grant. Subject to adjustments, as provided in the Plan, the number of shares of common stock initially authorized for issuance under the Plan was 4,441,083 (which consist of 3,830,000 new shares plus 611,083 shares that were authorized and unissued under the Prior Plan) plus up to 7,635,410 shares that were set aside for awards granted under the Prior Plan that were subsequently forfeited. The Plan supersedes all previously issued stock incentive plans (including the Prior Plan) and is currently the only available plan from which equity awards may be granted.

Stock Option Activity

The following table summarizes the stock option activity under the Plan and includes options granted under all previous plans.



	Options Outstanding
	Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life(in Years)	Aggregate Intrinsic Value ⁽²⁾
Balance, December 31, 2016	5,882,861		$	4.81	6.3	$	32,683,000
Granted	673,062		$	9.57	—	—
Exercised	(920,662	)	$	4.04	—	—
Forfeited	(217,617	)	$	6.47	—	—
Balance, September 30, 2017	5,417,644		$	5.46	6.6	$	15,100,000

Vested and exercisable as of September 30, 2017	3,570,351		$	4.75	5.7	$	11,672,000
Vested and exercisable as of September 30, 2017 and expected to vest thereafter (1)	5,121,800		$	5.34	6.5	$	14,686,000


(1)	Options that are expected to vest are net of estimated future option forfeitures in accordance with the provisions of ASC 718. “Compensation – Stock Compensation.”


(2)	The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the fair value of our common stock as of September 30, 2017 and December 31, 2016 of $7.90 and $10.35 per share, respectively.

As of September 30, 2017, total unrecognized compensation cost related to non-vested option awards, net of estimated forfeitures, was $5.5 million, which is expected to be recognized as expense over a weighted average period of approximately 2.5 years.

Restricted Stock Unit Activity

The following table summarizes the restricted stock unit activity under the Plan and includes restricted stock units granted under all previous plans.



	Units		Weighted Average Grant- Date Fair Value Per Unit
Unvested at December 31, 2016	213,514		$	8.65
Awarded	161,415		$	10.15
Vested	(78,095	)	$	8.65
Forfeited	(10,681	)	$	8.52
Unvested at September 30, 2017	286,153		$	9.50

As of September 30, 2017, total unrecognized compensation cost related to non-vested restricted stock units, net of estimated forfeitures, was $1.9 million, which is expected to be recognized as expense over a weighted average period of approximately 3.0 years.