Quarterly report pursuant to Section 13 or 15(d)

Share Based Compensation

v3.7.0.1
Share Based Compensation
3 Months Ended
Mar. 31, 2017
Stockholders' Equity Note [Abstract]  
Share Based Compensation
9. Share Based Compensation

2012 Equity Incentive Plan

Under the Company’s 2012 Equity Incentive Plan, the Company may grant shares, stock units, stock appreciation rights, performance cash awards and/or options to employees, directors, consultants, and other service providers. For options, the per share exercise price may not be less than the fair market value of a Company common share on the date of grant. Awards generally vest and become exercisable over three to four years and expire 10 years from the date of grant. Options generally become exercisable as they vest following the date of grant.

On September 13, 2016, the Board of Directors of the Company approved an amendment to the Company’s 2012 Equity Incentive Plan to increase the number of shares of the Company’s common stock available for issuance under the Plan by 3,000,000 shares and to increase the annual maximum aggregate number of shares subject to stock option awards that may be granted to any one person under the Plan from 125,000 to 1,100,000.

A summary of stock option activity for the three months ended March 31, 2017 under all of the Company’s options plans is as follows:
             
       
Weighted
 
       
Average
 
       
Exercise
 
   
Options
 
Price
 
Outstanding at December 31, 2016
   
1,835,835
   
$
4.15
 
Granted
   
615,000
     
2.92
 
Exercised
   
     
 
Cancelled (forfeited)
   
(17,905
)
   
3.29
 
Cancelled (expired)
   
(87
)
   
4.24
 
Outstanding at March 31, 2017
   
2,432,843
   
$
3.85
 

The weighted average fair value of options granted during the three months ended March 31, 2017 was $1.80 per share.

The Company valued the options granted using the Black-Scholes options pricing model and the following weighted-average assumption terms for the three months ended March 31, 2017:
 
   
Three Months Ended
March 31, 2017
 
Exercise price
 
$
2.92
 
Market value
 
$
2.92
 
Risk-free rate
 
1.93% to 2.09%%
 
Expected term
 
5.0 to 6.0 years
 
Expected volatility
 
83.2% to 87.9%
 
Dividend yield
   
-
 
 
Stock-Based Compensation

The Company recorded stock-based compensation expense in the Condensed Consolidated Statements of Operations and Comprehensive Loss as follows:

   
Three Months 
 
   
Ended March 31,  
 
(in thousands)
 
2017
   
2016
 
General and administrative
 
$
923
   
$
1
 
Research and development
   
163
     
1
 
   
$
1,086
   
$
2
 

At March 31, 2017, the Company had $3.2 million of total unrecognized stock-based compensation expense, net of estimated forfeitures, related to outstanding stock options that will be recognized over a weighted-average period of 2.3 years.