Quarterly report pursuant to Section 13 or 15(d)

Stock-based Compensation

v3.19.2
Stock-based Compensation
6 Months Ended
Jun. 30, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-based Compensation

9.

Stock-based Compensation

Pursuant to the terms of the Company’s 2014 Equity Incentive Plan, or 2014 Plan, on January 1, 2019 and 2018, the Company automatically added 1,918,879 and 1,158,866 shares to the total number shares of common stock available for future issuance under the 2014 Plan, respectively. As of June 30, 2019, there were 265,156 shares of common stock available for future issuance under the 2014 Plan.

On June 9, 2019, the Company’s board of directors amended the 2015 Inducement Plan, or 2015 Plan, and the share reserve for the 2015 Plan was increased from 450,000 to 900,000 shares of common stock.  During the six months ended June 30, 2019, the Company granted 115,000 options of the Company’s common stock under the 2015 Plan.  As of June 30, 2019, there were 315,500 shares of common stock available for future issuance under the 2015 Plan.  During the year ended December 31, 2018, there were no granted options of the Company's common stock under the 2015 Plan.  As of December 31, 2018, there were 5,000 shares of common stock available for future issuance under the 2015 Plan.

The activity for the Company’s 2009 Stock Option Plan, 2014 Plan, and 2015 Plan, for the six months ended June 30, 2019, is summarized as follows:

 

 

 

Number of

Shares

 

 

Weighted-

Average

Exercise

Price

 

 

Weighted-

Average

Remaining

Contractual

Life (in years)

 

 

Aggregate

Intrinsic

Value ($000)

 

Outstanding — December 31, 2018

 

 

4,052,913

 

 

$

4.37

 

 

 

7.23

 

 

$

 

Granted

 

 

1,614,500

 

 

$

1.26

 

 

 

 

 

 

 

 

 

Exercised

 

 

 

 

$

 

 

 

 

 

 

 

 

 

Forfeited/Cancelled

 

 

(88,435

)

 

$

6.80

 

 

 

 

 

 

 

 

 

Outstanding — June 30, 2019

 

 

5,578,978

 

 

$

3.43

 

 

 

7.63

 

 

$

169

 

Exercisable — June 30, 2019

 

 

2,928,163

 

 

$

4.96

 

 

 

6.40

 

 

$

89

 

Vested or expected to vest — June 30, 2019

 

 

5,578,978

 

 

$

3.43

 

 

 

7.63

 

 

$

169

 

Restricted stock unit ("RSU") activity under the 2014 Plan and 2015 Plan for the six months ended June 30, 2019, is summarized as follows:

 

 

Number of

Shares

 

 

Weighted

Average

Grant Date

Fair Value

Per Share

 

Non-vested at December 31, 2018

 

 

111,891

 

 

$

2.06

 

Granted

 

 

927,500

 

 

$

1.37

 

Vested

 

 

(23,840

)

 

$

2.27

 

Forfeited/Cancelled

 

 

(48,324

)

 

$

1.46

 

Non-vested at June 30, 2019

 

 

967,227

 

 

$

1.42

 

The fair value of RSUs is based on the market price of the Company's common stock on the date of grant.  RSUs generally vest 25% annually over a four-year period from the date of grant. Upon vesting, the RSUs are net share settled to cover the required withholding tax with the remaining shares issued to the holder.  The Company recognizes compensation expense for such awards ratably over the corresponding vesting period.

Compensation Cost

The compensation cost that has been charged against income for stock awards under the 2009 Stock Option Plan, the 2014 Plan, the 2015 Plan, and the Company’s 2014 Employee Stock Purchase Plan, or ESPP, was $0.4 million and $0.5 million for the three months ended June 30, 2019 and 2018, respectively, and $0.9 million for each of the six months ended June 30, 2019 and 2018.  The total income tax benefit recognized in the statements of operations for share-based compensation arrangements was zero for both the three and six months ended June 30, 2019 and 2018. Cash received from options exercised was zero for both the three and six months ended June 30, 2019, and 2018.

Stock-based compensation expense related to stock options is included in the following line items in the accompanying statements of operations (in thousands):

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Research and development

 

$

165

 

 

$

129

 

 

$

323

 

 

$

237

 

Selling, general and administrative

 

 

281

 

 

 

339

 

 

 

615

 

 

 

656

 

Total

 

$

446

 

 

$

468

 

 

$

938

 

 

$

893