Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 9 . Share-based Compensation 2016 The Sun BioPharma, Inc. 2016 “2016 March 2016 May 17, 2016. 2016 2016 no ten 1 ,500,000 September 30, 2017, 389,600 2016 2011 The Sun BioPharma, Inc. 2011 “2011 terminated in conjunction with stockholder approval of the 2016 2011 2011 ten zero two September 30, 2017, 294,360 2011 Share-based compensation expense for each of the periods presented is as follows (in thousands): Nine months Ended September 30 , 2017 September 30 , 2016 Research and development $ 229 $ — G eneral and administrative 938 — Total share-based compensation $ 1,167 $ — A summary of option activity is as follows: Shares Available for Grant Shares Underlying Options Weighted Average Exercise Price Per Share Aggregate Intrinsic Value Balances at December 31, 2016 1,114,400 701,960 $ 9.50 $ 3,896,235 Granted (4,000 ) 4,000 10.10 Exercised — (22,000 ) 1.25 Cancelled — — — Balances at September 30, 2017 1,110,400 683,960 $ 9.77 $ 2,121,985 Information about stock options outstanding, vested and expected to vest as of September 30, 2017, Outstanding, Vested and Expected to Vest Options Vested and Exercisable Weighted Average Weighted Average Remaining Weighted Remaining Per Share Contractual Average Options Contractual Exercise Price Shares Life (Years) Exercise Price Exercisable Life (Years) $0.88 – 1.10 38,360 5.08 $ 1.00 38,360 5.08 2.28 – 2.50 42,000 6.37 2.47 42,000 6.37 3.18 214,000 7.42 3.18 214,000 7.42 10.10 4,000 4.28 10.10 — — 15.10 385,600 8.76 15.10 196,050 9.11 683,960 7.96 $ 9.77 490,410 7.83 As of September 30, 2017 not $1.1 1.2 Nonemployee share-based compensation We account for stock options granted to nonemployees in accordance with FASB ASC 505. 397,000 $0 nine September 30, 2017 2016, The estimated fair values of the stock options issued to employees and non-employees were calculated using the Black-Scholes valuation model, based on the following assumptions for the nine September 30, 2017 2016: 2017 2016 Common stock fair value $10.00 – $29.80 n/a Risk-free interest rate 1.43% – 1.93% n/a Expected dividend yield 0% n/a Expected option life (in years) 2.25 – 5.0 n/a Expected stock price volatility 75.0 – 78.0% n/a | 9. Stock-Based Compensation 2016 The Sun BioPharma, Inc. 2016 “2016 March 2016 May 17, 2016. 2016 2016 no ten 15,000,000 shares of common stock are reserved for issuance. As of December 31, 2016, 3,856,000 2016 2011 The Sun BioPharma, Inc. 2011 “2011 September 2011 January 2012. 2016 2011 2011 2011 ten zero two December 31, 2016, 3,163,600 2011 We recognize stock-based compensation based on the value of the portion of awards that are ultimately expected to vest. Guidance requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The term “forfeitures” is distinct from “cancellations” or “expirations” and represents only the unvested portion of a surrendered option. We re-evaluate this estimate periodically and adjust the forfeiture rate on a prospective basis as necessary. Ultimately, the actual expense recognized over the vesting period will only be for those shares that actually vest. A summary of option activity is as follows: Shares Underlying Options Weighted Average Exercise Price Per Share Options outstanding at December 31, 2014 5,487,752 $ 0.24 Granted 5,340,000 0.32 Exercised (2,590,536 ) 0.20 Cancelled (4,773,616 ) 0.22 Forfeitures — — Options outstanding at December 31, 2015 3,463,600 $ 0.27 Granted 3,856,000 1.51 Exercised — — Cancelled (300,000 ) 0.32 Forfeitures — — Options outstanding at December 31, 2016 7,019,600 $ 0.95 Options exercisable at December 31, 2016 4,035,600 $ 0.54 A summary of the status of our unvested shares during the year ended and as of December 31, 2016 Shares Under Option Weighted Average Grant-Date Fair Value Unvested at December 31, 2015 — $ — Granted 3,856,000 0.95 Vested (872,000 ) 0.95 Forfeitures — — Unvested at December 31, 2016 2,984,000 $ 0.95 Information about stock options outstanding, vested and expected to vest as of December 31, 2016, Outstanding, Vested and Expected to Vest Options Vested and Exercisable Weighted Average Weighted Average Remaining Weighted Remaining Per Share Contractual Average Options Contractual Exercise Price Shares Life (Years) Exercise Price Exercisable Life (Years) $ 0.09 – 0.11 563,600 5.85 $ 0.10 563,600 5.85 0.23 – 0.25 460,000 7.11 0.25 460,000 7.11 0.32 2,140,000 8.17 0.32 2,140,000 8.17 1.51 3,856,000 9.51 1.51 872,000 9.75 7,019,600 8.07 $ 0.95 4,035,600 8.07 The cumulative grant date fair value of employee options vested during the years ended December 31, 2016 2015 $336,000 $933,000, December 31, 2016 2015 $0 $693,000, December 31, 2016, $3.9 As of December 31, 2016 2015, not $1.9 $0, 1.95 0 The assumptions used in calculating the fair value under the Black-Scholes option valuation model are set forth in the following table for options issued by the Company for the years ended December 31, 2016 2015: 2016 2015 Common stock fair value $1.51 $0.32 Risk-free interest rate 1.56% - 2.04% 1.57% - 1.61% Expected dividend yield 0% 0% Expected option life (years) 3.5 - 5.75 5.0 Expected stock price volatility 75.0% 62.60% - 64.59% Nonemployee stock-based compensation We account for stock options granted to nonemployees in accordance with FASB ASC 505. $557,000 $70,000 December 31, 2016 2015, Stock-based payments In the first 2016, 37,500 two $75,000. In the first 2015, 132,964 two $42,000. |