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Stock-based Compensation
9 Months Ended
Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
6. Stock-based Compensation
 
During nine months ended September 30, 2018, the Company issued options thereunder to certain directors, officers and consultants, most of which options were previously approved by the Board (collectively, the “Options”).
 
The Options included 71,576,000 options for officers, 15,680,000 options to independent directors, and 1,500,000 to an individual consultant. The Options are subject to vesting requirements. 50% of the Options are vested on the grant date, and the remaining 50% of the Options are vesting monthly over a period of 24 months following the Board approvals of the Options, subject to acceleration upon the occurrence of certain achievement milestones as reported in an 8-K filed on June 1, 2018. A performance milestone was achieved and the Company accelerated vesting on 25% of these outstanding Options.  As a result, the Company recorded an additional charge to stock-based compensation of $1.0 million during the nine months ended September 30, 2018.
 
Modification of Stock Options
 
In January 2018, the Board also approved extension of the term of options that were granted to Dr. Alton Boyton and Dr. Marnix Bosch on June 13, 2017, from 5 years to 10 years to conform to the term of other employee options. The Company accounted for the modification as a Type I (probable-to-probable) modification and the incremental cost was approximately $0.3 million.
 
The following table summarizes stock option activities for the Company’s option plans for the nine months ended September 30, 2018 (amount in thousands, except per share number):
 
  
Number of
Shares
  
Weighted
Average
Exercise
Price
  
Weighted
Average
 

Remaining
 

Contractual Life
(in
 
years)
  
Total Intrinsic
 

Value
 
Outstanding as of December 31, 2017  12,656  $10.56   1.9  $- 
Granted  100,090   0.23   9.6   - 
Forfeited/expired  (12,587)  -   -   - 
Outstanding as of September 30, 2018  100,159  $0.24   9.6  $- 
Options vested and exercisable  78,267  $0.24   9.5  $- 
 
The following weighted average assumptions were used to compute the fair value of stock options granted during the nine months ended September 30, 2018:
 
  
For the Nine Months
 
  
Ended
 
  
September 30, 2018
 
Exercise price $0.23 
Expected term (years)  5.2 
Expected stock price volatility  96%
Risk-free rate of interest  3%
 
The following table summarizes stock-based compensation expense related to stock options for the three and nine months ended September 30, 2018 and 2017 (in thousands):
 
  
For the three months ended
  
For the nine months ended
 
  
September 30,
  
September 30,
 
  
2018
  
2017
  
2018
  
2017
 
Research and development $451  $119  $1,575  $492 
General and administrative  1,004   -   11,718   - 
Total stock-based compensation expense
 
$
1,455
  
$
119
  
$
13,293
  
$
492
 
 
The weighted average grant date fair value was approximately $16.3 million, including the incremental fair value of $0.3 million resulting from the modification of Dr. Alton Boyton’s and Dr. Marnix Bosch’s options, which is being recognized over the new vesting period of 1.5 years. The total unrecognized compensation cost was approximately $2.4 million as of September 30, 2018 and will be recognized over the next 2.0 years.