Annual report pursuant to Section 13 and 15(d)

Equity Incentive Plans and Stock Based Compensation (Tables)

v3.3.1.900
Equity Incentive Plans and Stock Based Compensation (Tables)
12 Months Ended
Dec. 31, 2015
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Stock Option Activity Under Equity Incentive Plan

Activity under the 2004 and 2014 Plans is set forth below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

Shares

 

 

Outstanding Options

 

 

Average

 

 

 

Available

 

 

Number of

 

 

Exercise

 

 

Exercise

 

 

 

for Grant

 

 

Shares

 

 

Price

 

 

Price

 

Balances, December 31, 2012

 

 

498,411

 

 

 

5,098,972

 

 

$

0.42–7.75

 

 

$

3.18

 

Additional shares reserved

 

 

1,250,000

 

 

 

 

 

 

 

 

 

 

 

 

Options granted

 

 

(1,663,500

)

 

 

1,663,500

 

 

4.45–5.58

 

 

 

5.10

 

Options exercised

 

 

 

 

 

(145,641

)

 

0.79–3.46

 

 

 

1.56

 

Options canceled

 

 

90,325

 

 

 

(90,325

)

 

1.44–7.75

 

 

 

6.49

 

Balances, December 31, 2013

 

 

175,236

 

 

 

6,526,506

 

 

$

0.42–7.75

 

 

$

3.66

 

Additional shares reserved

 

 

7,250,000

 

 

 

 

 

 

 

 

 

 

 

 

Shares expired

 

 

(1,286,025

)

 

 

 

 

 

 

 

 

 

 

 

Options granted

 

 

(1,895,250

)

 

 

1,895,250

 

 

2.91–4.99

 

 

 

3.78

 

Options exercised

 

 

 

 

 

(73,282

)

 

0.64–4.90

 

 

 

1.43

 

Options canceled

 

 

179,532

 

 

 

(179,532

)

 

1.64–6.18

 

 

 

4.63

 

Balances, December 31, 2014

 

 

4,423,493

 

 

 

8,168,942

 

 

$

0.42–7.75

 

 

$

3.69

 

Additional shares reserved

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Options granted

 

 

(2,290,500

)

 

 

2,290,500

 

 

0.48-5.06

 

 

 

4.36

 

Options exercised

 

 

 

 

 

(99,759

)

 

0.79-4.90

 

 

 

1.75

 

Options canceled

 

 

1,327,547

 

 

 

(1,327,547

)

 

1.30-7.75

 

 

 

4.39

 

Balances, December 31, 2015

 

 

3,460,540

 

 

 

9,032,136

 

 

$

0.42–7.75

 

 

$

3.77

 

 

Stock Options Outstanding and Exercisable by Exercise Price

At December 31, 2015, stock options outstanding and exercisable by exercise price were as follows:

 

 

 

Options Outstanding

 

 

Options Exercisable

 

Range of

Exercise

Prices

 

Number

Outstanding

 

 

Weighted

Average

Remaining

Contractual

Life (Years)

 

 

Weighted

Average

Exercise

Price

 

 

Number

Exercisable

 

 

Weighted

Average

Exercise

Price

 

$0.42-$1.38

 

 

534,650

 

 

 

2.20

 

 

$

1.10

 

 

 

522,650

 

 

$

1.11

 

$1.44-$1.44

 

 

1,331,064

 

 

 

4.01

 

 

$

1.44

 

 

 

1,331,064

 

 

$

1.44

 

$1.49-$3.46

 

 

1,428,718

 

 

 

4.49

 

 

$

1.97

 

 

 

1,397,258

 

 

$

1.94

 

$3.62-$3.62

 

 

1,164,013

 

 

 

7.37

 

 

$

3.62

 

 

 

641,099

 

 

$

3.62

 

$3.87-$5.06

 

 

2,011,782

 

 

 

8.03

 

 

$

4.46

 

 

 

766,498

 

 

$

4.52

 

$5.09-$7.75

 

 

2,561,909

 

 

 

5.50

 

 

$

6.09

 

 

 

2,225,216

 

 

$

6.17

 

$0.42-$7.75

 

 

9,032,136

 

 

 

5.79

 

 

$

3.77

 

 

 

6,883,785

 

 

$

3.59

 

 

Stock-Based Compensation Expense

Stock-based compensation expense, which consists of the compensation cost for employee stock options and ESPP, 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):

 

 

 

Years Ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

Stock-based compensation expense:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

$

4,090

 

 

$

3,123

 

 

$

2,562

 

General and administrative

 

 

2,711

 

 

 

2,365

 

 

 

2,360

 

 

 

$

6,801

 

 

$

5,488

 

 

$

4,922

 

 

Weighted-Average Fair Value Valuation Assumptions

The fair value of employee stock options and employee purchase rights under the Company’s 2004 Purchase Plan was estimated using the following weighted-average assumptions for the years ended December 31, 2015, 2014 and 2013:

 

 

 

Years Ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

Employee Stock Options

 

 

 

 

 

 

 

 

 

 

 

 

Risk-free interest rate

 

 

1.70

%

 

 

1.83

%

 

 

1.14

%

Expected life (in years)

 

 

5.99

 

 

 

5.98

 

 

 

5.97

 

Dividend yield

 

 

 

 

 

 

 

 

 

Volatility

 

 

83

%

 

 

94

%

 

 

101

%

Weighted-average fair value of stock options granted

 

$

3.06

 

 

$

2.89

 

 

$

4.04

 

Employee Stock Purchase Plan

 

 

 

 

 

 

 

 

 

 

 

 

Risk-free interest rate

 

 

0.39

%

 

 

0.20

%

 

 

0.19

%

Expected life (in years)

 

 

1.24

 

 

 

1.24

 

 

 

1.25

 

Dividend yield

 

 

 

 

 

 

 

 

 

Volatility

 

 

50

%

 

 

49

%

 

 

77

%

Weighted-average fair value of ESPP purchase rights

 

$

1.58

 

 

$

1.60

 

 

$

2.27

 

 

Non-employee Stock-based Compensation Expense  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Weighted-Average Fair Value Valuation Assumptions

The fair value of the stock options granted were revalued at each reporting date using the Black-Scholes valuation model as prescribed by ASC 505-50 Equity-Based Payments to Non-Employees using the following assumptions:

 

 

 

Years Ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

Risk-free interest rate

 

 

2.14

%

 

 

2.52

%

 

 

2.51

%

Expected life (in years)

 

 

10

 

 

 

10

 

 

 

10

 

Dividend yield

 

 

 

 

 

 

 

 

 

Expected volatility

 

 

103

%

 

 

97

%

 

 

100

%