Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Equity

v3.5.0.2
Equity
6 Months Ended
Jun. 30, 2016
Equity [Abstract]  
Equity

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:

 

 

 

Number of

 

 

Weighted average

 

 

 

shares

 

 

exercise price

 

Options outstanding at December 31, 2015

 

 

5,326,505

 

 

$

3.07

 

Options granted

 

 

2,372,527

 

 

 

6.77

 

Less:

 

 

 

 

 

 

 

 

Options exercised

 

 

2,003,597

 

 

 

0.92

 

Options canceled or expired

 

 

258,155

 

 

 

4.68

 

Options outstanding at June 30, 2016

 

 

5,437,280

 

 

 

4.17

 

Exercisable at June 30, 2016

 

 

1,512,503

 

 

 

2.32

 

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:

 

 

Six Months Ended

June 30, 2016

 

Expected term (in years)

 

2.8 – 4.5

 

Risk-free interest rate (%)

 

 

1.1%

 

Expected volatility (%)

 

 

55%

 

Dividend yield (%)

 

 

0.0%

 

Weighted average fair value/share at grant date

 

$

2.57

 

 

 

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): 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Research and development expense

 

$

372

 

 

$

123

 

 

$

363

 

 

$

178

 

General and administrative expense

 

 

1,188

 

 

 

385

 

 

 

1,985

 

 

 

635

 

Total stock based compensation expense

 

$

1,560

 

 

$

508

 

 

$

2,348

 

 

$

813

 

 

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:

 

 

 

Number of

 

 

Weighted average

 

 

 

shares

 

 

exercise price

 

Warrants outstanding at December 31, 2015

 

 

650,000

 

 

$

1.48

 

Warrants granted

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

Warrants exercised

 

 

 

 

 

 

Warrants canceled or expired

 

 

 

 

 

 

Warrants outstanding at June 30, 2016

 

 

650,000

 

 

 

1.48

 

Exercisable at June 30, 2016

 

 

650,000

 

 

 

1.48

 

 

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.