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Stockholders' Equity
6 Months Ended
Jun. 30, 2019
Stockholders' Equity Note [Abstract]  
Stockholders' Equity
STOCKHOLDERS’ EQUITY

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 (income) and the impact it had on operations for the periods presented (in thousands):

 
Three months ended
June 30,
 
Six months ended
June 30,
 
2019
 
2018
 
2019
 
2018
Cost of sales
$

 
$
10

 
$
7

 
$
19

Product development
(6
)
 
30

 
22

 
55

Selling, general, and administrative
(14
)
 
195

 
494

 
356

Total stock-based compensation
$
(20
)
 
$
235

 
$
523

 
$
430



Total unearned stock-based compensation was $0.1 million at June 30, 2019, compared to $1.3 million at June 30, 2018. These costs will be charged to expense and amortized on a straight-line basis in future periods. The weighted average period over which the unearned compensation at June 30, 2019 is expected to be recognized is approximately 1.3 years.

Pursuant to agreements dated March 29, 2019, and effective April 1, 2019, Theodore L. Tewksbury III resigned as Chairman of the Board, Chief Executive Officer and President, and Jerry Turin resigned as Chief Financial Officer and Secretary. In accordance with their separation agreements, Theodore Tewksbury’s outstanding restricted stock units vested immediately and one-third of Jerry Turin’s outstanding restricted stock units vested immediately. Any stock options vested for Theodore Tewskbury as of April 1, 2019, shall remain exercisable for one year following. All unvested stock options were cancelled. The impact of the accelerated vesting of the restricted stock units and cancellation of the stock options was recognized during the three months ended March 31, 2019 and totaled $0.3 million.


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,
 
2019
 
2018
Fair value of options issued
$

 
$
1.74

Exercise price
$

 
$
2.46

Expected life of options (in years)

 
5.8

Risk-free interest rate
%
 
2.3
%
Expected volatility
%
 
84.3
%
Dividend yield
0.0
%
 
0.0
%


A summary of option activity under all plans for the six months ended June 30, 2019 is presented as follows:

 
Number of
Options
 
Weighted
Average
Exercise
Price Per
Share
 
Weighted
Average
Remaining
Contractual
Life (in years)
Balance at December 31, 2018
292,871

 
$
3.78

 
 
Canceled/forfeited
(129,896
)
 
2.67

 
 
Balance at June 30, 2019
162,975

 
$
4.67

 
5.5
 
 
 
 
 
 
Vested and expected to vest at June 30, 2019
162,629

 
$
4.67

 
5.5
 
 
 
 
 
 
Exercisable at June 30, 2019
157,701

 
$
4.72

 
5.5


Restricted stock units

A summary of restricted stock unit activity under all plans for the six months ended June 30, 2019 is presented as follows:

 
Restricted
Stock Units
 
Weighted
Average
Grant
Date
Fair Value
 
Weighted
Average
Remaining
Contractual
Life (in years)
Balance at December 31, 2018
546,858

 
$
2.54

 
 
Granted
27,187

 
1.16

 
 
Released
(377,894
)
 
2.54

 
 
Canceled/forfeited
(152,441
)
 
2.32

 
 
Balance at June 30, 2019
43,710

 
$
2.62

 
1.5