Stockholders' Equity

3 Months Ended

Mar. 31, 2017

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

Stockholders' Equity

Stockholders’ Equity

Share Based Compensation

We currently issue equity and equity-based awards under the 2014 Stock Incentive Plan (the “Plan”), and we have three inactive stock incentive plans: the 1999 Stock Option Plan, the 2004 Stock Option Plan and the 2006 Stock Incentive Plan. As of March 31, 2017, we have 2.5 million shares of common stock available for future grants of awards under the Plan, and awards for approximately 3.2 million shares are outstanding under all of our active and inactive plans. In April 2017, our Board of Directors approved, and recommended that our stockholders approve, a second amendment to the 2014 Plan to increase the number of shares authorized and reserved for issuance thereunder by 4.0 million shares, from 5.5 million shares to 9.5 million shares. We are seeking stockholder approval of this amendment at our Annual Meeting of Stockholders scheduled to be held on May 31, 2017. If approved by our stockholders, the proposed amendment will automatically become effective upon approval. Individual awards under these plans may take the form of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock awards and/or restricted stock units.

Stock Options

Total share based compensation expense recognized for stock options, which is included in general and administrative expenses in our condensed consolidated statements of operations, for the three months ended March 31, 2017 was $34 thousand. There was no share based compensation expense recognized for stock options in the three months ended March 31, 2016.

The following table summarizes our stock option activity during the three months ended March 31, 2017:

	Number of Shares	Weighted-Average Exercise Price		Aggregate Intrinsic Value		Weighted-Average Remaining Contractual Term
				(In thousands)		(In years)
Outstanding at December 31, 2016	861,366	$	3.99
Granted	—	$	—
Canceled	(8,000)	$	9.90
Outstanding at March 31, 2017	853,366	$	3.94	$	815	5.32
Exercisable at March 31, 2017	474,366	$	5.25	$	163	2.21

There were no options granted or exercised during the three months ended March 31, 2017 or 2016.

As of March 31, 2017, there was $241 thousand of total unrecognized compensation cost related to unvested stock option arrangements granted under the Plan. That cost is expected to be recognized over a weighted-average period of 1.8 years.

Restricted Stock Units and Restricted Stock Awards

Total share based compensation expense recognized for restricted stock units and restricted stock awards (together, “RSUs”), which is included in general and administrative expense in our condensed consolidated statements of operations, for the three months ended March 31, 2017 and 2016 was $1.2 million and $850 thousand, respectively.

The following table summarizes the activity of our RSUs during the three months ended March 31, 2017:

	Number of RSUs	Weighted-Average Grant Date Fair Value
Outstanding at December 31, 2016	3,363,946	$	2.78
Granted	761,642	$	3.99
Canceled (1)	(1,532,278)	$	2.45
Vested	(256,106)	$	3.28
Outstanding at March 31, 2017	2,337,204	$	3.33

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(1) Includes shares net-settled to cover statutory employee taxes related to the vesting of restricted stock awards, which increased treasury shares by 8 thousand in the three months ended March 31, 2017.

As of March 31, 2017, there was $6.1 million of total unrecognized compensation cost related to unvested RSUs granted under the plans. That cost is expected to be recognized over a weighted-average period of 2.4 years.

Other

In addition to the stock options and RSUs, we determined the majority of the earn-out provisions in the business we acquired in March 2015 from Habits at Work to be share based compensation expense. In the three months ended March 31, 2017, we reduced share based compensation expense by $57 thousand due to actual Habits at Work performance being lower than forecasted. In the three months ended March 31, 2016, we recorded share based compensation expense of $305 thousand, which is included in general and administrative expenses in our condensed consolidated financial statements. Due to the exit of the Habits at Work business, there is no remaining unrecognized compensation expense.

As a result of shares withheld for tax purposes on the vesting of a restricted stock award, we increased our treasury shares by 8 thousand in the three months ended March 31, 2017. Under the Prior Credit Agreement, we were prohibited from declaring and paying ordinary cash or stock dividends or repurchasing any shares of common stock. For additional information, please see Note 21.