| Stock-Based Compensation | 8. Stock-Based Compensation
The Company’s Amended and Restated 2015 Stock Incentive Plan
(the “2015 Plan”), is administered by the
Company’s Board of Directors and provides for the grant of
incentive stock options, nonstatutory stock options, restricted
stock, restricted stock units, stock appreciation rights and other
stock-based awards. The Company’s officers, employees,
consultants, advisors and directors are eligible to receive awards
under the 2015 Plan; however, incentive stock options may only be
granted to employees. Stock option awards are exercisable for a
period determined by the Company, but in no event longer than ten
years from the date of the grant. Stock option awards generally
vest as to 25% of the shares underlying the option on the first
anniversary of the date of grant and as to 6.25% of the shares
underlying the option quarterly thereafter for the following three
years, subject to continued service. In May 2018, the
Company’s stockholders approved an amendment and restatement
of the 2015 Plan which included an 8,200 increase to the number of
shares of common stock that may be issued pursuant to the 2015
Plan. There were 9,195 shares available to be granted under the
2015 Plan as of September 30, 2018.
A summary of the status of the Company’s stock option
activity for the nine months ended September 30, 2018 is
presented in the table and narrative below:
Options Weighted
Outstanding at January 1, 2018 12,160 $ 6.37
Granted 6,522 3.03
Exercised (655 ) 2.88
Forfeited (1,252 ) 4.43
Cancelled (1,206 ) 7.96
Outstanding at September 30, 2018 15,569 $ 5.15
Options exercisable at September 30, 2018 8,351 $ 6.54
Weighted-average fair value of options granted during the
period $ 2.11
The Company utilizes the Black-Scholes option pricing model for
determining the estimated fair value for stock-based awards. The
Black-Scholes model requires the use of assumptions which determine
the fair value of the stock-based awards. The assumptions used to
value options granted to employees are as follows:
Nine Months Ended
September 30, 2018 September 30, 2017
Expected term of option 6.0 years 6.0 years
Expected volatility 79% - 82% - 83%
Risk free interest rate 2.62% -2.98% 2.04% - 2.08%
Expected dividend yield 0% 0%
Total compensation expense recorded in the accompanying statements
of operations associated with stock option grants made to employees
was $1,506 and $2,378 for the three months ended September 30,
2018 and 2017, respectively, and $7,281 and $8,288 for the nine
months ended September 30, 2018 and 2017, respectively. Total
compensation expense recorded in the accompanying statements of
operations associated with stock option grants made to consultants
was $89 and $0 for the three months ended September 30, 2018
and 2017, respectively, and $161 and $0 for the nine months ended
September 30, 2018 and 2017, respectively. The Company
recorded no tax benefit related to these stock options since the
Company currently maintains a full valuation allowance on its
deferred tax assets.
As of September 30, 2018, the intrinsic value of the stock
options outstanding was $5,658, of which $1,879 related to vested
stock options and $3,779 related to unvested stock options. The
intrinsic value of stock options is calculated based on the
difference between the exercise prices of the underlying common
stock and the quoted stock price of the Company’s common
stock as of the reporting date.
As of September 30, 2018, the total compensation cost related
to unvested stock options not yet recognized in the financial
statements was approximately $13,087, net of estimated forfeitures,
and the weighted average period over which this amount is expected
to be recognized is 2.9 years. |
