Stock-based Compensation

3 Months Ended

Mar. 31, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-based Compensation

9. Stock-based Compensation

The Company has stock-based employee compensation plans for which compensation cost is recognized in its financial statements. The cost is measured at the grant date, based on the fair value of the award, determined using the Black-Scholes option pricing model, and is recognized as an expense over the employee’s requisite service period (generally the vesting period of the equity award).

The following table presents the weighted-average assumptions used to estimate the fair value of options granted during the periods indicated:

	Three Months Ended
	March 31, 2019
Weighted average grant date fair value	$	0.99
Expected dividend yield		—	%
Expected stock price volatility		61	%
Risk-free interest rate		2.6	%
Expected life of options (in years)		6.25

Total stock-based compensation expense included in the accompanying condensed consolidated statements of operations for the periods presented, is as follows (in thousands):

	Three Months Ended
	March 31,
	2019		2018
Technology and development	$	103	$	134
Sales and marketing		115		138
General and administrative		113		281
Total stock-based compensation expense	$	331	$	553

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

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (in thousands)
Outstanding at January 1, 2019		7,669,093		$	2.51
Granted		120,200			1.68
Exercised		(24,819	)		1.49
Forfeited		(41,512	)		2.15
Expired		(167,847	)		2.61
Outstanding at March 31, 2019		7,555,115		$	2.50		6.26	$	58
Vested and expected to vest at March 31, 2019		7,410,324		$	2.50		6.21	$	58
Vested and exercisable at March 31, 2019		5,652,596		$	2.54		5.51	$	49

Aggregate intrinsic value represents the difference between the Company’s closing stock price of its common stock and the exercise price of outstanding, in-the-money options. The Company’s closing stock price as reported on the Nasdaq Global Market as of March 31, 2019 was $1.57 per share. The total intrinsic value of options exercised for the three months ended March 31, 2019 was minimal. The weighted average fair value of options granted during the three months ended March 31, 2019 amounted to $0.99 per option share.

As of March 31, 2019, the unrecognized compensation cost related to options granted, for which vesting is probable, and adjusted for estimated forfeitures, was approximately $2.1 million. This cost is expected to be recognized over a weighted-average remaining period of 2.4 years.

RSU Activity —A summary of RSU activity for the three months ended March 31, 2019 is as follows:

	Number of Shares			Weighted Average Fair Value
Unvested—January 1, 2019		11,346		$	3.60
Granted		383,500			1.76
Released		(416	)		3.04
Forfeited		—			—
Unvested—March 31, 2019		394,430		$	1.81
Unvested expected to vest —March 31, 2019		394,430		$	1.81

As of March 31, 2019, total unrecognized compensation cost, adjusted for estimated forfeitures, related to RSUs was $0.6 million. This cost is expected to be recognized over a weighted-average remaining period of 2.88 years.