Stock-Based Compensation

9 Months Ended

Sep. 30, 2020

Stock-Based Compensation

Stock-Based Compensation

8. Stock-Based Compensation

The following table summarizes the stock option and award activity for the nine months ended September 30, 2020:

		Options Outstanding
			Weighted-		Weighted-
	Options and		Average		Average
	Awards		Exercise		Remaining	Aggregate
	Available for	Number of	Price Per		Contractual	Intrinsic
	Grant	Options	Share		Life (years)	Value
						(In thousands)
Balance—December 31, 2019	638,227	1,931,903	$	7.17	6.5	$	188
Authorized	542,452
Restricted stock units granted	(456,679)
Restricted stock units cancelled/forfeited	33,478
Options granted	(844,455)	844,455	$	2.59
Options exercised		(221,298)	$	5.22		$	351
Options cancelled/forfeited	235,355	(254,608)	$	7.79
Balance—September 30, 2020	148,378	2,300,452	$	5.61	8.1	$	2,609
Options exercisable—September 30, 2020		990,885	$	7.39	6.9	$	94

The total grant date fair value of options vested was $ 438,000 and $557,000 during the three months ended September 30, 2020 and 2019, respectively, and $1.8 million during both the nine months ended September 30, 2020 and 2019.

The weighted-average grant date fair value of employee options granted was $3.62 and $4.49 per share during the three months ended September 30, 2020 and 2019, respectively, and $1.71 and $4.11 per share during the nine months ended September 30, 2020 and 2019, respectively.

2016 Employee Stock Purchase Plan

In January 2020, there was an increase of 180,817 shares reserved for issuance under the Company’s Employee Stock Purchase Plan (ESPP) pursuant to the terms of the ESPP. The Company had 554,343 shares available for future issuance under the Company’s ESPP as of September 30, 2020. Employees purchased 22,474 shares for $50,000 during the nine months ended September 30, 2020. Employees purchased 22,405 shares for $130,000 during the nine months ended September 30, 2019.

Restricted Stock Units

The following table summarizes Restricted Stock Units (RSUs) activity for the nine months ended September 30, 2020:

	RSUs Outstanding
		Weighted-
		Average
	Number of	Grant Date
	Restricted Stock	Fair Value Per
	Units	Share
Balance—December 31, 2019	211,962	$	6.97
Granted	456,679		4.50
Vested	(176,839)		6.18
Cancelled/forfeited	(33,478)		6.50
Balance—September 30, 2020	458,324	$	4.85

The fair value of RSUs is determined on the date of grant based on the market price of the Company’s common stock on that date. As of September 30, 2020, there was $1.7 million of unrecognized stock-based compensation expense related to RSUs to be recognized over a weighted-average period of 2.3 years.

Stock-based Compensation Expense

As of September 30, 2020, there was $3.6 million of total unrecognized stock-based compensation expense related to unvested options which is expected to be recognized over a weighted-average period of 2.9 years. Compensation cost capitalized within inventory at September 30, 2020 and at December 31, 2019 was not material.