Share-Based Compensation

6 Months Ended

Jun. 30, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Note 4:

Share-Based Compensation

During the three and six months ended June 30, 2019, the Company issued non-qualified stock option awards to certain employees of the Company. These option awards vest ratably over a three-year period and the option awards expire after a term of ten years from the date of grant. As of June 30, 2019, the Company had total unrecognized stock-based compensation expense for its outstanding stock option awards of approximately $2.3 million, which is expected to be recognized over a weighted average period of 2.1 years. The weighted average grant date fair value of option grants during the six months ended June 30, 2019 and 2018 was $1.94 and $2.30 per option, respectively. The aggregate intrinsic value of the in-the-money awards outstanding at June 30, 2019 was $0.

The Company uses the Black-Scholes option pricing model to calculate the fair value of stock options granted. The fair value of stock options granted was estimated using the following assumptions:

	For the Six Months Ended June 30,
	2019	2018
Expected volatility	115.29% - 117.94%	71.15% - 99.23%
Expected life of option, in years	5.8 - 6.0	5.7 - 6.0
Risk-free interest rate	1.88% - 2.64%	2.69% - 2.81%
Expected dividend yield	0.00%	0.00%

The following table summarizes the activity related to the stock option awards for the six months ended June 30, 2019:

	Number of Shares			Weighted- Average Exercise Price
Awards outstanding at December 31, 2018		1,767,503		$	8.57
Granted		995,500			2.26
Forfeited		(186,292	)		5.99
Awards outstanding at June 30, 2019		2,576,711		$	6.32
Options exercisable at June 30, 2019		1,338,567		$	9.45
Weighted average remaining contractual term	6.8 Years
Options vested and expected to vest at June 30, 2019		2,524,818		$	6.39
Weighted average remaining contractual term	8.0 Years

The following table summarizes the activity related to the RSU awards for the six months ended June 30, 2019:

	Number of Shares			Weighted- Average Grant Date Fair Value
Awards outstanding at December 31, 2018		23,333		$	5.81
Vested		(11,666	)		5.81
Awards outstanding at June 30, 2019		11,667		$	5.81
RSUs expected to vest at June 30, 2019		11,505		$	5.81

As of June 30, 2019, the total unrecognized stock-based compensation expense and the aggregate intrinsic value related to the Company’s outstanding RSU awards were both de minimis.

Compensation expense related to the grants of stock options and RSUs is included in research and development and general and administrative expense as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Research and development	$	150	$	225	$	215	$	624
General and administrative		251		578		467		1,142
Total share-based compensation expense	$	401	$	803	$	682	$	1,766