Stock-Based Compensation

6 Months Ended

Jun. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

(10) Stock-Based Compensation

Stock-based compensation expense for the three months ended June 30, 2015 and 2014 was $0.4 million and $0.2 million, respectively. Stock-based compensation expense for the six months ended June 30, 2015 and 2014 was $0.9 million and $0.3 million, respectively.

Total stock-based compensation expense was recorded to cost of revenues and operating expenses based upon the functional responsibilities of the individuals holding the respective options as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Cost of revenues	$	22	$	13	$	41	$	13
Sales and marketing		10		13		18		16
Research and development		233		—		608		—
General and administrative		107		156		237		317

Total	$	372	$	182	$	904	$	346

Cash received for option exercises was $0.1 million and $17,000 for the six months ended June 30, 2015 and 2014, respectively.

Juniper granted 232,000 and 222,000 stock options to employees during the six months ended June 30, 2015 and 2014, respectively.

The Company records stock-based compensation expense for stock options granted to non-employees based on the fair value of the stock options, which is re-measured over the graded vesting term resulting in periodic adjustments to stock-based compensation expense. In March 2015, 240,000 stock options were granted by the Company to non-employees. One-third of the options vested immediately resulting in $0.4 million of stock based compensation expense. During the three months ended June 30, 2015 the Company has recorded stock based compensation expense of $0.2 million. The stock based compensation expense recorded for non-employees is reflected in the research and development line of the statement of operations. The remaining options will be re-measured over a 1.75 year period from the date of grant.

The Company uses the Black-Scholes option pricing model to determine the estimated grant date fair values for stock-based awards. The weighted-average grant date fair values of the options granted during the six months ended June 30, 2015 and 2014 were $3.62 and $4.51, respectively for employees and $4.44 and $0 for non-employees, using the following assumptions:


	Six Months Ended March 31,
	2015	2014
Risk free interest rate	0.87% - 1.47%*		1.64	%
Expected term	4.56 - 7 years*		4.75 years
Dividend yield	—		—
Expected volatility	76.76% - 82.88%*		81.36	%

Option-pricing models require the input of various subjective assumptions, including the option’s expected life and the price volatility of the underlying stock. Juniper’s estimated expected stock price volatility is based on its own historical volatility. Juniper’s expected term of options granted during the six months ended June 30, 2015 and 2014 was derived using the simplified method for employees and the contractual term of the option for non-employees. The risk-free rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant.

*	Represents the fair value assumptions for the non-employee options.

As of June 30, 2015, the total unrecognized compensation cost related to outstanding stock options and restricted stock awards expected to vest was $2.4 million, which the Company expects to recognize over a weighted-average period of 2.81 years.