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Stockholders' Equity
6 Months Ended
Jun. 30, 2016
Stockholders' Equity Note [Abstract]  
Stockholders' Equity
STOCKHOLDERS’ EQUITY

Warrants

A summary of warrant activity for the six months ended June 30, 2016 is presented as follows:

 
Warrants
Outstanding
 
Weighted
Average
Exercise
Price During
Period
Balance at December 31, 2015
14,250

 
$
4.30

Exercised

 

Canceled/forfeited
(7,500
)
 
4.30

Expired

 

Balance at June 30, 2016
6,750

 
$
4.30

 
 
 
 
Exercisable at June 30, 2016

 
$



Stock-based compensation

Stock-based compensation expense is attributable to stock options and restricted stock unit awards. For all stock-based awards, we recognize expense using a straight-line amortization method.

The following table summarizes stock-based compensation expense and the impact it had on operations for the periods presented (in thousands):

 
Three months ended
June 30,
 
Six months ended
June 30,
 
2016
 
2015
 
2016
 
2015
Cost of sales
$
10

 
$
15

 
$
24

 
$
18

Product development
20

 
13

 
36

 
16

Selling, general, and administrative
354

 
144

 
580

 
250

Total stock-based compensation
$
384

 
$
172

 
$
640

 
$
284



Total unearned stock-based compensation was $2.0 million at June 30, 2016, compared to $1.1 million at June 30, 2015. These costs will be charged to expense and amortized on a straight-line basis in subsequent periods. The weighted average period over which the unearned compensation at June 30, 2016 is expected to be recognized is approximately 2.1 years.

Stock options

The fair value of each stock option is estimated on the date of grant using the Black-Scholes option pricing model. Estimates utilized in the calculation include the expected life of the option, risk-free interest rate, and expected volatility, and are further comparatively detailed as follows:

 
Six months ended
June 30,
 
2016
 
2015
Fair value of options issued
$
5.59

 
$
4.11

Exercise price
$
7.42

 
$
5.54

Expected life of option (in years)
5.8

 
5.8

Risk-free interest rate
1.6
%
 
1.7
%
Expected volatility
93.3
%
 
88.3
%
Dividend yield
0.0
%
 
0.0
%


A summary of option activity under all plans for the six months ended June 30, 2016 is presented as follows:

 
Number of
Options
 
Weighted
Average
Exercise
Price Per
Share
 
Weighted
Average
Remaining
Contractual
Life (in years)
Balance at December 31, 2015
602,207

 
$
8.58

 
 
Granted
123,790

 
7.42

 
 
Exercised
(68,307
)
 
4.59

 
 
Canceled/forfeited
(43,725
)
 
7.97

 
 
Expired

 

 
 
Balance at June 30, 2016
613,965

 
$
8.84

 
7.9
 
 
 
 
 
 
Vested and expected to vest at June 30, 2016
577,223

 
$
8.94

 
7.8
 
 
 
 
 
 
Exercisable at June 30, 2016
384,778

 
$
9.54

 
7.2

Restricted stock units

A summary of restricted stock unit activity under all plans for the six months ended June 30, 2016 is presented as follows:

 
Restricted
Stock Units
 
Weighted
Average
Grant
Date
Fair Value
 
Weighted
Average
Remaining
Contractual
Life (in years)
Balance at December 31, 2015
57,500

 
$
7.31

 
 
Granted
270,895

 
6.67

 
 
Released
(10,000
)
 
15.08

 
 
Canceled/forfeited
(45,770
)
 
6.84

 
 
Balance at June 30, 2016
272,625

 
$
6.47

 
2.0