Stock-Based Compensation

6 Months Ended

Jun. 30, 2016

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

Stock-Based Compensation

6. Stock-Based Compensation

Stock Plans

During the six months ended June 30, 2016, the Company granted 1.4 million shares of restricted stock with a weighted average grant date fair value of $0.68 per share. This cost will be amortized ratably over a period of 12 to 48 months.

As of June 30, 2016, there were 6.8 million shares available for future grants under the 2015 Omnibus Equity Incentive Plan.

Employee Stock Purchase Plan

The Company’s most recent six-month offering period ended March 31, 2016 and resulted in 14,000 shares being purchased/granted at a fair value of $0.50 per share. The next six-month offering period began on April 1, 2016 and will end on September 30, 2016. These shares will have a fair value of $0.50 per share.

Stock Compensation

The Company accounts for all stock-based payment awards made to employees and directors based on their fair values and recognized as compensation expense over the vesting period using the straight-line method over the requisite service period for each award as required by FASB ASC Topic No. 718, Compensation-Stock Compensation. Restricted stock is valued using the closing stock price on the date of the grant. Options are valued using a Black-Scholes valuation model.

Stock-based non-cash compensation expense related to stock options, restricted stock grants and the employee stock purchase plan were recorded in the financial statements as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
	(unaudited)				(unaudited)
Cost of revenues	$	—	$	3	$	2	$	6
Selling and marketing		84		83		154		158
Research and development		127		151		248		320
General and administrative		194		286		361		615
Total non-cash stock compensation expense	$	405	$	523	$	765	$	1,099

Total share-based compensation for each quarter included cash payments of income taxes related to grants of restricted stock in the amount of $0 and $22,000 for the three month periods ended June 30, 2016 and 2015, respectively. The cash payments of income taxes related to grants of restricted stock totaled $0 and $54,000 for the six month periods ended June 30, 2016 and 2015, respectively.