Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

v3.20.2
Stock-Based Compensation
6 Months Ended
Jun. 30, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation

NOTE 11 — STOCK-BASED COMPENSATION

Stock-based compensation expense, which consists of the compensation cost for employee stock options and the value of options issued to non-employees for services rendered, was allocated to research and development and general and administrative in the consolidated statements of operations as follows (in thousands):  

 

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Research and development

 

$

1,703

 

 

$

583

 

 

$

2,849

 

 

$

1,035

 

General and administrative

 

 

1,347

 

 

 

859

 

 

 

2,393

 

 

 

1,768

 

Total stock-based compensation

 

$

3,050

 

 

$

1,442

 

 

$

5,242

 

 

$

2,803

 

 

At June 30, 2020, the total unrecognized compensation cost related to unvested stock-based awards granted to employees under the Company’s equity incentive plans was approximately $35.1 million. This cost will be recorded as compensation expense on a ratable basis over the remaining weighted average requisite service period of approximately 2.85 years.

Valuation Assumptions

The Company estimated the fair value of stock options granted using the Black-Scholes option-pricing formula and a single option award approach. This fair value is being amortized ratably over the requisite service periods of the awards, which is generally the vesting period.

The fair value of employee stock options was estimated using the following weighted-average assumptions:

 

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Employee Stock Options:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk-free interest rate

 

 

0.55

%

 

 

2.31

%

 

 

1.58

%

 

 

2.55

%

Expected term (in years)

 

 

6.08

 

 

 

6.08

 

 

 

6.08

 

 

 

6.08

 

Dividend yield

 

 

 

 

 

 

 

 

 

 

 

 

Volatility

 

 

111.61

%

 

 

108.89

%

 

 

110.67

%

 

 

108.87

%

Weighted-average fair value of stock options granted

 

$

12.41

 

 

$

6.65

 

 

$

12.19

 

 

$

4.28

 

 

Equity Incentive Plans

These plans consist of the 2018 Equity Incentive Plan; the 2014 Equity Incentive Plan, as amended; the 2004 Amended and Restated Equity Incentive Plan; and the Amended and Restated 2004 Employee Stock Purchase Plan. As of May 31, 2018, the 2014 Equity Incentive Plan; and the 2004 Equity Incentive Plan were terminated, and no further shares will be granted from those plans.

The following table summarizes stock option activity under the Company’s equity incentive plans:

 

Options

 

Number of

Shares

 

 

Weighted-

Average

Exercise

Price

 

 

Weighted-

Average

Remaining

Contractual

Term

 

 

Aggregate

Intrinsic

Value (in millions)

 

Outstanding at December 31, 2019

 

 

4,763,062

 

 

$

6.36

 

 

 

8.1

 

 

$

36.6

 

Granted

 

 

2,129,506

 

 

$

14.58

 

 

 

 

 

 

 

 

 

Exercised

 

 

(189,719

)

 

$

3.59

 

 

 

 

 

 

 

 

 

Forfeitures

 

 

(73,359

)

 

$

11.14

 

 

 

 

 

 

 

 

 

Outstanding at June 30, 2020

 

 

6,629,490

 

 

$

9.03

 

 

 

8.4

 

 

$

33.6

 

Exercisable at June 30, 2020

 

 

2,306,319

 

 

$

6.36

 

 

 

7.2

 

 

$

17.4

 

 

The total intrinsic value of stock options exercised during the six months ended June 30, 2020 and 2019, was $2.0 million and $0.2 million, respectively, as determined at the date of the option exercise.

 

Cash received from stock option exercises was $0.7 million and $0.8 million for the six months ended June 30, 2020 and 2019, respectively. The Company issues new shares of common stock upon exercise of options. In connection with these exercises, there was no tax benefit realized by the Company due to the Company’s current loss position.