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Share-Based Compensation
3 Months Ended
Mar. 31, 2014
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Share-Based Compensation

4. Share-Based Compensation

The Company sponsors the Intra-Cellular Therapies, Inc. 2013 Equity Incentive Plan (the “2013 Plan”) to provide for the granting of stock awards, such as stock options, restricted common stock and stock appreciation rights to employees, directors and other individuals as determined by the Board of Directors. In August 2013, the Company assumed in the Merger the ITI 2003 Equity Incentive Plan , as amended (the “2003 Plan”), which expired by its terms in July 2013. As of March 31, 2014, the only outstanding awards under the 2003 Plan were options to purchase 1,400,125 shares of common stock. Effective in November 2013, the Company adopted the 2013 Plan. The Company reserved 2,850,000 shares of common stock for issuance under the 2013 Plan. In January 2014, the Company increased the number of shares of common stock reserved for issuance under the 2013 Plan by 800,000 pursuant to the evergreen provisions of the 2013 Plan.

Stock options granted under the 2013 Plan may be either incentive stock options (“ISOs”) as defined by the Internal Revenue Code, or non-qualified stock options. The Board of Directors determines who will receive options, the vesting periods (which are generally two to three years) and the exercise prices of such options. Options have a maximum term of 10 years. The exercise price of ISOs granted under the 2013 Plan must be at least equal to the fair market value of the common stock on the date of grant.

Total stock-based compensation expense, related to all of the Company’s share-based awards to employees, directors and non-employees recognized during three months ended March 31, 2014 and 2013, was comprised of the following:

 

    

Three Months Ended

March 31,

 
     2014      2013  

Research and development

   $ 97,417       $ 26,621   

General and administrative

     102,337         47,449   
  

 

 

    

 

 

 

Total share-based compensation expense

   $ 199,754       $ 74,070   
  

 

 

    

 

 

 

The following table describes the weighted-average assumptions used for calculating the value of options granted during the three months ended March 31, 2014:

 

     2014

Dividend yield

   0%

Expected volatility

   80%

Weighted-average risk-free interest rate

   2.0%

Expected term

   6.4 years

Information regarding the stock options activity including employees, directors and non-employees as of March 31, 2014, and changes during the three-month period then ended, are summarized as follows:

 

     Number of
Shares
     Weighted-
Average
Exercise
Price
     Weighted-
Average
Contractual
Life
 

Outstanding at December 31, 2013 (audited)

     1,400,125       $ 1.98         5.3 years   

Options granted (unaudited)

     168,000       $ 17.35         6.4 years   

Options exercised (unaudited)

     —         $ —           —     

Options canceled or expired (unaudited)

     —         $ —           —     
  

 

 

    

 

 

    

Outstanding at March 31, 2014 (unaudited)

     1,568,125       $ 3.63         5.6 years   
  

 

 

    

 

 

    

Vested or expected to vest at March 31, 2014 (unaudited)

     1,568,125       $ 3.63      
  

 

 

    

 

 

    

Exercisable at March 31, 2014 (unaudited)

     1,174,640       $ 1.76         4.4 years