Quarterly report pursuant to Section 13 or 15(d)
|6 Months Ended|
Jun. 30, 2016
Note H — Equity
A summary of the stock option activity under the Company’s plans for the six months ended June 30, 2016 is as follows:
Of the 5,437,280 outstanding options at June 30, 2016, 1,375,000 were variable accounted stock options issued to non-employees of the Company of which 485,000 options were vested and 890,000 options were unvested as of June 30, 2016.
The fair value of each stock option award granted during the six months ended June 30, 2016 was estimated as of the grant date using a trinomial lattice model with the following weighted average assumptions:
As of June 30, 2016, there was approximately $7.4 million of unrecognized share based compensation expense related to stock options that will be recognized over a weighted-average period of approximately 1.4 years. This includes $2.4 million in unrecognized expense related to the 890,000 shares of unvested variable accounted for stock options subject to fair value adjustment at the end of each reporting period based on changes in the Company’s stock price.
Stock based compensation expense recognized for stock options and restricted stock and included in the consolidated statements of operations was allocated as follows (in thousands):
Stock based compensation recorded in research and development relates to unvested options and warrants granted to a non-employee.
Common Stock Warrants
A summary of the warrant activity for the six months ended June 30, 2016 is as follows:
During the three months ended June 30, 2016 and 2015, we recorded $74,000 and $111,000 of warrant compensation expense, respectively. During the six months ended June 30, 2016, we recorded warrant compensation gain of $10,000 and during the six months ended June 30, 2015, we recorded $207,000 of warrant compensation expense, respectively. Warrant expense for the periods presented is recorded in research and development as the expense relates to unvested performance based warrants granted to a non-employee. As of June 30, 2016 all warrants are fully vested.
The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.
Reference 1: http://www.xbrl.org/2003/role/presentationRef