United states securities and exchange commission

 

The following table summarizes the stock option activity for the year ended December 31, 2016 (in thousands, except per share amounts):

 

										Weighted-
						Weighted-				Average
		Shares				Average				Remaining				Aggregate
		Underlying				Exercise				Life				Intrinsic
		Options				Price				(in years)				Value
Outstanding at January 1, 2016			4,101			$	6.58				8.3			$	58,417
Granted			232				13.79
Exercised			(767	)			3.75
Forfeited or cancelled			(460	)			11.15
Outstanding at December 31, 2016			3,106				7.14				7.5				38,558
Vested and expected to vest—December 31, 2016			3,024				7.01				7.4				37,907
Exercisable at December 31, 2016			1,816				4.99				6.9				26,431

 

The follow table summarizes the activity of our unvested stock options for the year ended December 31, 2016 (in thousands, except per share amounts):

 

						Weighted-
						Average
		Shares______Grant_Date'>Shares				Grant Date
		Underlying				Fair Value
		Options				Per Share
Unvested at January 1, 2016			2,460			$	5.74
Granted			232				8.29
Vested			(1,049	)			4.67
Forfeited			(446	)			6.91
Unvested at December 31, 2016			1,197				6.74

 

The weighted-average grant-date fair value of each option granted during 2016, 2015 and 2014 was $8.29, $7.26 and $3.75, respectively. The total intrinsic value of options exercised was $12,214,000, $2,328,000, and $10,942,000 during 2016, 2015, and 2014, respectively. The total fair value of options vested during 2016, 2015 and 2014 was $4,877,000, $2,366,000, $735,000, respectively.

As of December 31, 2016 and 2015, we had $5,342,000 and $9,721,000, respectively, of unrecognized stock-based compensation costs related to non-vested options that are expected to be recognized over a weighted average period of 2.3 years and 3.0 years, respectively.

As of December 31, 2016 and 2015, we had $830,000 and $919,000 of unrecognized stock-based compensation expense related to our ESPP that is expected to be recognized over the remaining term of the current offering period through May 31, 2017.

 

F-23

INSTRUCTURE, INC.

Notes to Consolidated Financial Statements

 

RSUs vest upon achievement of a service condition. As soon as practicable following each vestin g date, we will issue to the holder of the RSUs the number of shares of common stock equal to the aggregate number of RSUs that have vested. The service condition is a time-based condition met over a vesting period, as determined by our board of directors, which generally ranges from one to four years. The total stock-based compensation expense expected to be recorded over the remaining life of outstanding RSUs is approximately $14,936,000 at December 31, 2016. That cost is expected to be recognized over a weighted-average period of 3.2 years as of December 31, 2016. As of December 31, 2016, there are 1,606,000 RSUs expected to vest with an aggregate intrinsic value of $31,402,000. The total fair value of RSUs vested was approximately $3,743,000 in the year ended December 31, 2016. No RSUs vested in years ended December 31, 2015 and 2014.

The activity for RSUs for the year ended December 31, 2016 is as follows (in thousands, except per share amounts):

 

		RSUs Outstanding
						Weighted-
						Average
						Grant Date Fair
		Shares				Value Per Share
Unvested and outstanding at January 1, 2016			196			$	18.42
Granted			1,277				18.04
Vested			(186	)			16.82
Cancelled			(154	)			17.64
Unvested and outstanding at December 31, 2016			1,133				18.36