Share-Based Payments

3 Months Ended

Mar. 31, 2017

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

Pursuant to the terms of the Company's 2014 Stock Incentive Plan (the "2014 Plan"), the number of shares authorized for issuance automatically increases on the first day of each fiscal year. On January 1, 2017, the number of shares reserved for issuance under the 2014 Plan increased by 982,164 shares. As of March 31, 2017, the total number of shares of common stock available for issuance under the 2014 Plan was 2,237,354.

The Company also maintains the Eleven Biotherapeutics, Inc. 2009 Stock Incentive Plan, as amended and restated.

Stock-Based Compensation Expense

Stock-based compensation expense by award type was as follows (in thousands):



	Three Months Ended March 31,
	2017		2016
Stock options	$	187	$	435
Restricted stock	51		54
Restricted stock units	3		92
Employee stock purchase plan	3		5
	$	244	$	586

The Company allocated stock-based compensation expense as follows in the consolidated statements of operations and comprehensive loss (in thousands):



	Three Months Ended March 31,
	2017		2016
Research and development expense	$	40	$	221
General and administrative expense	204		365
	$	244	$	586

At March 31, 2017, there was $1.8 million of total unrecognized compensation expense related to unvested stock options, unvested restricted stock, and shares issued pursuant to the Company's 2014 Employee Stock Purchase Plan (the "2014 ESPP"). This unrecognized compensation expense is expected to be recognized over a weighted-average period of 2.88 years.

Stock Options

A summary of the stock option activity is presented below:



	Shares		Weighted-Average Exercise Price
Outstanding at December 31, 2016	2,024,468		$	4.41
Granted	—		—
Exercised	(140,400	)	0.28
Cancelled or forfeited	(166,887	)	9.85
Outstanding at March 31, 2017	1,717,181		$	4.22
Exercisable at March 31, 2017	863,767		$	4.93
Vested and expected to vest at March 31, 2017⁽¹⁾	1,717,181		$	4.22


⁽¹⁾	Represents the number of vested options, plus the number of unvested options expected to vest. The Company adopted ASU 2016-09 as of January 1, 2017 and elected an accounting policy to record forfeitures as they occur.

Restricted Stock

From time to time, upon approval by the Board, certain employees, directors and advisors have been granted restricted shares of common stock. A summary of the restricted stock is presented below:



	Restricted Stock		Weighted-Average Grant Date Fair Value
Unvested at December 31, 2016	22,150		$	11.43
Vested	(4,430	)	11.43
Unvested at March 31, 2017	17,720		$	11.43

Restricted Stock Units

From time to time, upon approval by the Board, certain employees have been granted restricted stock units. A summary of the restricted stock units is presented below:



	Restricted Stock Units		Weighted-Average Grant Date Fair Value
Unvested at December 31, 2016	3,333		$	4.09
Vested	(3,333	)	4.09
Unvested at March 31, 2017	—		$	—

Employee Stock Purchase Plan

On March 14, 2017, the Company issued and sold 2,899 shares of its common stock pursuant to the 2014 ESPP at a purchase price of $1.71 per share. The Company has estimated the number of shares to be issued at the end of the current offering period and recognizes expense over the requisite service period.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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