Quarterly report pursuant to Section 13 or 15(d)

Description of Stock Plans (Tables)

v3.10.0.1
Description of Stock Plans (Tables)
 3 Months Ended
Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Summary of Options Granted
The following table summarizes stock option activity for the Stock Plans for the periods or as of the dates indicated:
 
 
Number of
Shares
 
Weighted Average
Exercise Price (per share)
 
Weighted Average
Remaining Contractual
Life (in years)
 
Aggregate Intrinsic
Value (in thousands)
Options Outstanding, March 31, 2018
 
9,741,969

 
$
2.08

 
7.82
 
$
6,286

Granted
 
1,198,425

 
1.68

 
 
 
 
Forfeited / Cancelled
 
(388,570
)
 
9.59

 
 
 
 
Exercised
 
(150,001
)
 
0.79

 
 
 
 
Options Outstanding, June 30, 2018
 
10,401,823

 
1.77

 
7.99
 
2,960

Vested and expected to vest (net of estimated forfeitures) at June 30, 2018 (a)
 
8,549,126

 
1.88

 
7.77
 
2,268

Exercisable, June 30, 2018
 
4,642,180

 
$
2.43

 
6.94
 
$
743

(a) For options vested and expected to vest, options exercisable, and options outstanding, the aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between Digital Turbine's closing stock price on June 30, 2018 and the exercise price multiplied by the number of in-the-money options) that would have been received by the option holders, had the holders exercised their options on June 30, 2018. The intrinsic value changes based on changes in the price of the Company's common stock.
Exercise Price for Options Outstanding and Options Exercisable
Information about options outstanding and exercisable at June 30, 2018 is as follows:
 
 
Options Outstanding
 
Options Exercisable
Exercise Price
 
Number of Shares
 
Weighted-Average Exercise Price
 
Weighted-Average Remaining Life (Years)
 
Number of Shares
 
Weighted-Average Exercise Price
$0.00 - 0.50
 
6,618

 
$
0.24

 
1.74
 
6,618

 
$
0.24

$0.51 - 1.00
 
2,971,934

 
$
0.73

 
8.36
 
555,511

 
$
0.74

$1.01 - 1.50
 
2,737,634

 
$
1.28

 
7.97
 
1,421,057

 
$
1.29

$1.51 - 2.00
 
1,586,370

 
$
1.65

 
9.52
 
197,055

 
$
1.53

$2.01 - 2.50
 
709,267

 
$
2.22

 
9.29
 
122,735

 
$
2.33

$2.51 - 3.00
 
853,200

 
$
2.61

 
6.09
 
809,696

 
$
2.62

$3.51 - 4.00
 
765,300

 
$
3.96

 
6.22
 
765,300

 
$
3.96

$4.01 - 4.50
 
661,500

 
$
4.15

 
6.16
 
657,333

 
$
4.15

$4.51 - 5.00
 
60,000

 
$
4.65

 
4.74
 
60,000

 
$
4.65

$5.01 and over
 
50,000

 
$
5.89

 
6.20
 
46,875

 
$
5.89

 
 
10,401,823

 
 
 
 
 
4,642,180

 
 
Schedule of Intrinsic Value of stock option
Other information pertaining to stock options for the Stock Plans for the three months ended June 30, 2018 and 2017, as stated in the table below, is as follows:
 
 
June 30,
 
 
2018
 
2017
Total fair value of options vested
 
$
404

 
$
597

Total intrinsic value of options exercised (a)
 
$
115

 
$
4

(a) The total intrinsic value of options exercised represents the total pre-tax intrinsic value (the difference between the stock price at exercise and the exercise price multiplied by the number of options exercised) that was received by the option holders who exercised their options during the three months ended June 30, 2018 and 2017.
Fair Value Inputs, Liabilities, Quantitative Information
The market-based assumptions and estimates used in valuing the convertible note embedded derivative liability include amounts in the following amounts:
 
June 30, 2018
Stock price volatility
65
%
Probability of change in control
1.75
%
Stock price (per share)
$1.51
Expected term
2.25 years

Risk-free rate (1)
2.51
%
Assumed early conversion/exercise price (per share)
$2.73
(1) The Monte Carlo simulation assumes the continuously compounded equivalent (CCE) interest rate of 1.0% based on the average of the 2-year and 3-year U.S. Treasury securities as of the valuation date.
The market-based assumptions and estimates used in valuing the warrant liability include amounts in the following amounts:
 
June 30, 2018
Stock price volatility
65
%
Probability of change in control
1.75
%
Stock price (per share)
$1.51
Expected term
2.25 years

Risk-free rate (1)
2.51
%
Assumed early conversion/exercise price (per share)
$2.73
(1) The Monte Carlo simulation assumes the continuously compounded equivalent (CCE) interest rate of 1.0% based on the average of the 2-year and 3-year U.S. Treasury securities as of the valuation date.
The assumptions utilized in this model for options granted during the three months ended June 30, 2018 are presented below.

 
June 30, 2018
Risk-free interest rate
 
 2.79% to 2.85%
Expected life of the options
 
 5.65 to 9.94 years
Expected volatility
 
66%
Expected dividend yield
 
—%
Expected forfeitures
 
29%