Stockholders' Equity | 8. Stockholders’ Equity Common Stock and Preferred Stock On July 6, 2015, the Company filed an amended and restated certificate of incorporation to increase the amount of common stock authorized for issuance to 100,000,000 shares with a par value of $0.0001 per share and 10,000,000 shares with a $0.0001 par value per share of preferred stock. As of October 31, 2016, the Company had 17,892,367 shares of common stock outstanding which included the 5,000,000 shares issued in the IPO. The Company did not have any shares of preferred stock issued and outstanding. Equity Award Plans 2005 Stock Plan The Board of Directors adopted, and the stockholders approved, the Company’s 2005 Stock Plan (the “2005 Plan”) Plan was amended and restated in the form of the 2015 Equity Incentive Plan described below. The terms of the 2005 Plan will continue to govern the terms and conditions of the outstanding awards previously granted thereunder. 2015 Equity Incentive Plan In June 2015, the Company amended and restated its 2005 Plan in the form of 2015 Equity Incentive Plan (the “2015 Plan”) which became effective immediately upon the effectiveness of the Company’s IPO. T he 2015 Plan provides for the grant of incentive stock options to its employees and any of its subsidiary corporations’ employees, and for the grant of non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, performance units and performance shares to its employees, directors and consultants and its subsidiary corporations’ employees and consultants. 5% of the outstanding shares of its common stock as of the last day of its immediately preceding fiscal year; and (ii) such other amount as the Company’s board of directors may determine. In April 2016, an additional 854,483 shares were authorized for future issuance under the 2015 Plan. As of October 31, 2016, the Company had 984,031 shares available for future issuance. Employee Stock Purchase Plan In conjunction with the completion of its IPO, the Company adopted the 2015 Employee Stock Purchase Plan (“ESPP”). A maximum of 441,165 shares were initially authorized for future issuance. The number of authorized shares under the ESPP is subject to increase on an annual basis. In April 2016, an additional 341,793 shares were authorized for future issuance. The ESPP allows eligible employees to purchase shares of common stock at a discount through payroll deductions of up to 15% of their eligible compensation subject to plan limitations. The ESPP provides for a 24-month offering period comprised of four purchase periods of approximately six months. Employees are able to purchase shares at 85% of the lower of the fair market value of the Company’s common stock (i) at the date of commencement of the offering period or (ii) at the last day of the purchase period. The offering periods are scheduled to start on the first trading day on or after March 15 and September 15 of each year. During the nine months ended October 31, 2016, there were two purchases that resulted in the issuance of 234,792 shares of common stock at a weighted average purchase price of $5.01 per share. On March 15, 2016 the Company started a new offering period at a new offering price based on the closing price of the Company’s common stock on the same date. The Company concluded that starting a new offering period prior to the completion of the existing offering period resulted in an accounting modification and accordingly, recorded $0.3 million of incremental compensation charge to be recognized over the remaining life of the ESPP offering period. The Company recorded stock-based compensation related to the ESPP of $0.2 million and $0.2 million, respectively, for the three months ended October 31, 2016 and 2015, and $0.7 million and $0.2 million, respectively, for the nine months ended October 31, 2016 and 2015. Stock Options Options to purchase shares of common stock may be granted to employees, directors, and consultants. These options vest from date of grant to up to five years and expire 10 years from the date of grant. Options may be exercised anytime during their term in accordance with the vesting/exercise schedule specified in the recipient’s stock option agreement and in accordance with the plan provisions. Shares issued upon exercise prior to vesting, are subject to a right of repurchase, which lapses according to the original option vesting schedule. Summary of option activity under the Company’s 2005 Plan and 2015 Plan for the nine months ended October 31, 2016 is set forth below: Options Outstanding Number of Weighted Shares Weighted Average Aggregate Underlying Average Remaining Intrinsic Outstanding Exercise Contractual Term Value Options Price (Years) (in thousands) Balance, January 31, 2016 2,087,584 $ 5.59 7.9 $ 4,843 Options granted — — Options exercised (202,355 ) 1.35 Options canceled (89,102 ) 12.02 Balance, October 31, 2016 1,796,127 $ 5.75 7.3 $ 6,413 Vested and exercisable, October 31, 2016 954,691 $ 4.39 6.4 $ 4,564 Vested and expected to vest, October 31, 2016 1,796,127 $ 5.75 7.3 $ 6,413 The a ggregate intrinsic value in the table above represents the difference between the exercise price of the options to purchase common stock and the Company’s closing stock price of $8.65 per share as of October 31, 2016. The aggregate intrinsic value of options exercised for the three months ended October 31 , 2016 and 2015 was $0.3 million and $0.2 million, respectively, and $1.3 million and $0.8 million for the nine months ended October 31, 2016 and 2015, respectively. Restricted Stock Units Restricted Stock Units (RSUs) were granted to employees, non-employee board members and consultants. These RSUs are subject to a time-based vesting condition, which ranges from one to four years. A summary of the Company’s RSU activity and related information for the nine months ended October 31, 2016 is as follows: Number of Shares Weighted-Average Grant-Date Fair Value Per Share Weighted-Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (in thousands) Balance as of January 31, 2016 1,056,905 $ 9.60 1.43 $ 7,176 RSUs granted 1,521,250 7.16 RSUs vested (549,747 ) 9.09 RSUs canceled (127,175 ) 8.07 Balance as of October 31, 2016 1,901,233 $ 7.56 1.54 $ 16,446 During the nine months ended October 31, 2016 and 2015, the Company paid $1.3 million and $0 million, respectively, of shares repurchased for tax withholding purpose on the vested RSUs and classified the payments as financing cash outflows in the condensed consolidated statements of cash flows. Common Stock Warrants As of October 31, 2016, the Company had warrants to purchase 97,931 shares of common stock with exercise prices ranging from $4.70 to $6.04 per share. These common warrants have expiration dates through January 2025. |