Quarterly report pursuant to Section 13 or 15(d)

Stock-based Compensation

v3.19.3
Stock-based Compensation
9 Months Ended
Sep. 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 September 30, 2019, there were 626,774 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 nine months ended September 30, 2019, the Company granted 115,000 options of the Company’s common stock under the 2015 Plan.  As of September 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 nine months ended September 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

 

 

1,629,500

 

 

$

1.26

 

 

 

 

 

 

 

 

 

Exercised

 

 

(22,500

)

 

$

0.54

 

 

 

 

 

 

 

 

 

Forfeited/Cancelled

 

 

(470,053

)

 

$

7.96

 

 

 

 

 

 

 

 

 

Outstanding — September 30, 2019

 

 

5,189,860

 

 

$

3.09

 

 

 

7.84

 

 

$

75

 

Exercisable — September 30, 2019

 

 

2,761,275

 

 

$

4.32

 

 

 

6.99

 

 

$

47

 

Vested or expected to vest — September 30, 2019

 

 

5,189,860

 

 

$

3.09

 

 

 

7.84

 

 

$

75

 

 

Restricted stock unit (“RSU”) activity under the 2014 Plan and 2015 Plan for the nine months ended September 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

 

 

932,500

 

 

$

1.37

 

Vested

 

 

(28,423

)

 

$

2.19

 

Forfeited/Cancelled

 

 

(48,324

)

 

$

1.46

 

Non-vested at September 30, 2019

 

 

967,644

 

 

$

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 September 30, 2019 and 2018, respectively, and $1.4 million for each of the nine months ended September 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 nine months ended September 30, 2019 and 2018. Cash received from options exercised was $12,000 for the three and nine months ended September 30, 2019.  Cash received from options exercised for the three and nine months ended September 30, 2018 was zero.

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 September 30,

 

 

Nine Months Ended September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Research and development

 

$

148

 

 

$

134

 

 

$

471

 

 

$

371

 

Selling, general and administrative

 

 

301

 

 

 

324

 

 

 

916

 

 

 

980

 

Total

 

$

449

 

 

$

458

 

 

$

1,387

 

 

$

1,351