9. Equity Compensation

Stock Options

In 2003, the Board of Directors adopted the 2003 Equity Incentive Plan (the “2003 Plan”), which provided for the granting of nonqualified and incentive stock options, stock appreciation rights, stock awards, restricted stock units and restricted stock awards. Under the 2003 Plan, the Company was able to grant nonqualified and incentive stock options to directors, employees and non-employees providing services to the Company. On June 11, 2013, the Company’s Board of Directors adopted the 2013 Stock Option and Incentive Plan (the “2013 Plan”), which was subsequently approved by the Company’s stockholders. The 2013 Plan became effective as of the closing of the Company’s initial public offering. To the extent that any awards outstanding under the 2003 Plan are forfeited or lapse unexercised after August 1, 2013, the shares of common stock subject to such awards will become available for issuance under the 2013 Plan. The 2013 Plan provides for annual increases in the number of reserved shares of 5% of the outstanding number of shares of the Company’s Common Stock as of the preceding December 31. On January 1, 2019, the number of reserved shares was increased by 1,325,845 in accordance with the provisions of the 2013 Plan.

A summary of stock option activity for the three months ended March 31, 2019 is presented below:


				Weighted
				Average
	Shares Subject	Weighted		Remaining
	to Options	Average		Contractual
	Outstanding	Exercise Price		Life (Years)
Balance at December 31, 2018	1,081,212		12.98
Exercised	(32,010)		9.70
Expired	(2,626)		16.96
Forfeited	(1,336)		7.28
Balance at March 31, 2019	1,045,240		13.08

Exercisable options at March 31, 2019	1,010,354		13.21	4.4
Vested and expected to vest at March 31, 2019	1,045,240		13.08	4.4

The following table summarizes information about stock options outstanding and exercisable at March 31, 2019:


				Options Outstanding				Options Exercisable
							Weighted-		Weighted-
				Weighted			Average		Average
				Average		Number of	Remaining	Number of	Remaining
				Exercise		Underlying	Contractual	Underlying	Contractual
Range of Exercise Prices				Price		Shares	Life (in years)	Shares	Life (in years)
$	4.89	-	7.49		6.22	269,614	2.4	267,480	2.3
$	8.16	-	12.93		10.57	274,926	4.9	242,174	4.8
$	12.98	-	19.56		15.60	270,481	5.6	270,481	5.6
$	20.91	-	22.92		21.16	230,219	4.8	230,219	4.8
						1,045,240		1,010,354

For the stock option awards vested during the three months ended March 31, 2019, the total fair value was $0.1 million. The following table summarizes the aggregate intrinsic-value of options exercised, exercisable and vested and expected to vest (in thousands):


	For the Three Months Ended
	and as of March 31,
	2019		2018
Options Exercised	$	269	$	2,765
Options Exercisable		4,757		15,335
Options Vested and Expected to Vest		5,026		17,203

Restricted stock units

A summary of restricted stock unit activity for the three months ended March 31, 2019 is presented below:


	Number of	Weighted Average
	Shares	Grant Date Fair Value
Non-vested balance at December 31, 2018	824,365	$	19.77
Awarded	808,520		17.69
Vested	(314,606)		19.07
Forfeited	(9,002)		19.39
Non-vested balance at March 31, 2019	1,309,277		18.66

During the three months ended March 31, 2019, 314,606 restricted stock units vested of which 103,094 shares were withheld for tax purposes resulting in the issuance of 211,512 shares of common stock.

Company Matching Contribution to the 401(k) Plan

The Company offers a 401(k) Plan and in November 2016, the Company’s Board of Directors authorized a matching contribution by the Company starting in 2017 and amended effective in 2019. Current matching contributions are as follows: the Company will match 100% of the first 1% of salary contributed by a participant, and 70% of the next 5% of salary contributed by a participant, for a maximum matching contribution of 4.5% of the salary of a participant up to the limit on contributions imposed by the Internal Revenue Service (“IRS”). Currently, the Company funds its match in contribution with shares of Control4’s common stock. During the three months ended March 31, 2019, the Company contributed 34,854 shares of stock to employees under this plan and recorded $0.6 million of expenses associated with this contribution.

Stock-based compensation expense

Total stock-based compensation expense has been classified as follows in the accompanying condensed consolidated statements of operations (in thousands):


	Three Months Ended
	March 31,
	2019		2018
Cost of revenue	$	78	$	68
Research and development		1,287		1,084
Sales and marketing		870		959
General and administrative		1,294		1,224
Total stock-based compensation expense	$	3,529	$	3,335

At March 31, 2019, there was $0.6 million of total unrecognized compensation cost related to non-vested stock option awards that will be recognized over a weighted-average period of 0.3 years. At March 31, 2019, there was $18.0 million of total unrecognized compensation cost related to non-vested restricted stock units that will be recognized over a weighted-average period of 2.3 years if all vesting conditions are met.