Share-Based Compensation

9 Months Ended

Mar. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

11. Share-Based Compensation

The following table summarizes the components of share-based compensation expense in the condensed consolidated statements of operations (in thousands):

	Three Months Ended
	March 31,
	2016		2015
Research and development	$	6	$	-
General and administrative		291		224
Totals	$	297	$	224

	Nine Months Ended
	March 31,
	2016		2015
Research and development	$	15	$	-
General and administrative		925		690
Totals	$	940	$	690

Stock Options

On August 12, 2008, the Company adopted the iBioPharma 2008 Omnibus Equity Incentive Plan (the “Plan”) for employees, officers, directors and external service providers. The original Plan provided that the Company may grant options to purchase stock and/or make awards of restricted stock up to an aggregate amount of 10 million shares. On December 18, 2013, the Plan was amended to increase the number of shares reserved for awards under the Plan from 10 million to 15 million. As of March 31, 2016, there were approximately 2.9 million shares of common stock reserved for future issuance under the Plan. Stock options granted under the Plan may be either incentive stock options (as defined by Section 422 of the Internal Revenue Code of 1986, as amended) or non-qualified stock options at the discretion of the Board of Directors. Vesting of service awards occurs ratably on the anniversary of the grant date over the service period, generally three or five years, as determined at the time of grant. Vesting of performance awards occurs when the performance criteria have been satisfied. The Company uses historical data to estimate forfeiture rates.

On September 4, 2015 and March 1, 2016, the Company granted stock options to members of the Board of Directors, officers and employees to purchase 2.75 million shares of common stock. These options vest ratably over a three to five year service period, expire ten years from the date of grant, and have a weighted average exercise price of $1.64 per share.

The following table summarizes all stock option activity during the nine months ended March 31, 2016:

					Weighted-
			Weighted-		average
			average		Remaining		Aggregate
	Stock		Exercise		Contractual		Intrinsic Value
	Options		Price		Term (in years)		(in thousands)
Outstanding as of July 1, 2015		9,523,334	$	1.22		6.6	$	1,848
Granted		2,750,000		1.64
Outstanding as of March 31, 2016		12,273,334	$	1.31		6.6	$	479
Vested and, as of March 31, 2016, expected to vest		12,212,641	$	1.31		6.6	$	479
Exercisable as of March 31, 2016		7,455,024	$	1.31		5.3	$	417

The weighted-average grant date fair value of stock options granted during the nine months ended March 31, 2016 was $0.62 per share. As of March 31, 2016, there was approximately $1.9 million of total unrecognized compensation cost related to non-vested stock options that the Company expects to recognize over a weighted-average period of 2.0 years.

The Company estimated the fair value of options granted using the Black-Scholes option pricing model with the following assumptions:

Risk-free interest rate	1.83% - 2.13	%
Dividend yield	0	%
Volatility	109.49% - 112.17	%
Expected term (in years)	9