Stock Option Plans | 8. Stock Option Plans Pursuant to the Company’s 2005 Stock Incentive Plan (the “2005 Plan”), options and restricted stock may be granted to employees, directors and consultants of the Company. Options granted under the Company’s 2005 Plan may be either incentive stock options or nonstatutory stock options. Incentive stock options may be granted to employees with exercise prices of no less than 100% the fair value of the common stock on the grant date and nonstatutory options may be granted to employees, directors or consultants at exercise prices of no less than 85% of the fair value of the common stock on the grant date, as determined by the Board of Directors. All options granted under the 2005 Plan may be exercised before they are vested. Employee stock options generally vest 25% upon one year of continued service to the Company, with the remainder in monthly increments over three additional years. Stock options granted to consultants generally vest over the performance period of the consultancy agreement, ranging from two to four years. Options expire no more than ten years after the date of grant. In connection with the Board of Directors’ and stockholders’ approval of the 2015 Plan, all remaining shares available for future award under the 2005 Plan were transferred to the 2015 Plan, and the 2005 Plan was terminated. In April 2015, the Company’s board of directors and stockholders approved the 2015 Equity Incentive plan (“2015 Plan”), effective June 11, 2015, covering options, restricted stock, restricted stock units, stock appreciation rights, performance units and performance shares that may be granted to employees, directors and consultants. The number of shares authorized for issuance under the 2015 Plan is 3,597,794 at September 30, 2015 of which 1,512,552 shares were available for grant. The number of shares available for issuance under the 2015 Plan will be increased on the first day of each fiscal year in an amount equal to at least (i) 1,494,272 shares; (ii) five percent of the outstanding shares on the last day of the immediately preceding fiscal year or (iii) such number of shares determined by the Company’s board of directors. Incentive stock options may be granted to employees or directors holding more than 10% of the voting power of all classes of stock of the Company at an exercise price of no less than 110% of the fair value of the common stock on the grant date and to all other employees or directors at an exercise price of no less than 100% of the fair value of the common stock on the grant date. Nonstatutory stock options may be granted to employees, directors and consultants at an exercise price no less than 100% of the fair value of the common stock on the grant date. Employee stock options generally vest 25% upon one year of continued service to the Company, with the remainder in monthly increments over four additional years. Options expire no more than ten years after the date of grant. Any options under the 2015 Plan that expire or otherwise terminate will revert to the 2015 Plan and again become available for issuance. The 2015 Plan also includes the granting of restricted stock, restricted stock units, stock appreciation rights and performance units. The following table summarizes stock option activity under the plans and related information: Options Outstanding Options Options Weighted- Aggregate (in thousands) Balances at December 31, 2014 315,876 1,379,503 $ 2.56 $ 9,483 Options authorized 1,851,517 — Options granted (736,595 ) 736,595 $ 12.60 Options exercised — (15,605 ) $ 2.30 Options forfeited 81,754 (81,754 ) $ 6.24 Balances at September 30, 2015 1,512,552 2,018,739 $ 6.08 $ 16,345 Options exercisable at September 30, 2015 1,813,302 $ 6.08 $ 16,102 Options vested and expected to vest at September 30, 2015 1,895,687 $ 5.81 $ 15,828 The aggregate intrinsic values of options outstanding, exercisable, vested and expected to vest were calculated as the difference between the exercise price of the options and the fair value of the Company’s common stock, as of September 30, 2015 and December 31, 2014. During the three months ended September 30, 2015 and 2014, the Company granted options with a weighted average grant date fair value of $12.88 and $6.97 per share respectively. During the nine months ended September 30, 2015 and 2014, the Company granted options with a weighted average grant date fair value of $12.60 and $4.53 per share respectively. The aggregate intrinsic value of options exercised was $11,000 and $0 during the three months ended September 30, 2015 and 2014, respectively, and $71,000 and $24,000 during the nine months ended September 30, 2015 and 2014. The total fair value of options vested was $367,000 and $140,000 for the three months ended September 30, 2015 and 2014, and $879,000 respectively, and $402,000 for the nine months ended September 30, 2015 and 2014, respectively. The weighted-average remaining contractual life of options outstanding was 7.8 years at both September 30, 2015 and December 31, 2014. For both September 30, 2015 and December 31, 2014, the weighted-average remaining contractual life was 7.7 years, for vested and expected to vest options. Early Exercise of Stock Options The 2005 Plan allowed for the granting of options that may be exercised before the options have vested. Shares issued as a result of early exercise that have not vested are subject to repurchase by the Company upon termination of the purchaser’s employment or services, at the price paid by the purchaser. The Company’s right to repurchase these shares generally lapses 1/48 of the original grant date amount per month over four years. At September 30, 2015 and December 31, 2014, there were 10,878 and 17,566 shares of common stock outstanding subject to the Company’s right of repurchase at a weighted-average price of $2.43 and $2.34 per share. Stock-Based The fair value of share-based Black-Scholes option- Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Expected term (in years) 5.0-6.32 6.0 5.0-6.32 6.0 Expected volatility 33.4-34.1 % 37 % 32.8-34.1 % 37-38 % Risk-free 1.61-1.80 % 1.80-1.93 % 1.31-1.80 % 1.80%-1.93 % Dividend yield — — — — Stock-based Black-Scholes Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Expected term (in years) 8.1-9.9 8.0-9.5 8.1-9.9 8.0-10.0 Expected volatility 39-39.5 % 38 % 34-39.5 % 38%-43 % Risk-free 1.85-2.06 % 2.53 % 1.79-3.03 % 2.53%-2.72 % Dividend yield — — — — The following table summarizes stock-based Three Months Ended Nine Months Ended 2015 2014 2015 2014 Cost of revenue $ 25 $ 5 $ 66 $ 9 Research and development 76 19 223 52 Selling, general and administrative 257 145 630 430 Total stock-based $ 358 $ 169 $ 919 $ 491 As of September 30, 2015, unrecognized compensation expense related to unvested options, net of estimated forfeitures, was $3.9 million, which the Company expects to recognize on a straight-line weighted-average |