Employee Stock-Based Compensation

9 Months Ended

Sep. 30, 2014

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

Employee Stock-Based Compensation

NOTE 12.  EMPLOYEE STOCK-BASED COMPENSATION

At the Company’s 2014 Annual Meeting of Stockholders held on May 29, 2014, stockholders approved an amendment to the Company’s 2012 Omnibus Equity Incentive Plan increasing the number of shares of Common Stock reserved and available for grant thereunder by 4,000,000 to 9,500,000 shares.

The following table summarizes stock-based compensation expense in the condensed consolidated statements of operations for the periods indicated (in thousands):

	Stock-Based Compensation Expense (in thousands)
	Three-month period ended				Nine-month period ended
	September 30, 2014		September 30, 2013		September 30, 2014		September 30, 2013
Research and development	$	1,113	$	468	$	3,225	$	1,145
Sales, general and administrative		1,290		540		4,109		1,467
Total stock-based compensation expense	$	2,403	$	1,008	$	7,334	$	2,612

The following table summarizes option activity under all plans during the nine-month period that ended on September 30, 2014:

Stock Option Activity
	Number of Shares			Weighted Average Exercise Price per Share
Options Outstanding December 31, 2013	5,160,086		$	3.45
Granted	709,025		$	15.78
Cancelled	(13,678	)	$	13.06
Exercised	(255,000	)	$	2.86
Expired	—			—
Options Outstanding September 30, 2014	5,600,433		$	5.01

The following table summarizes relevant information for options outstanding and options exercisable at September 30, 2014:

Stock Option Supplemental Information
		Options Outstanding		Options Exercisable
Number of options		5,600,433		1,756,885
Weighted average remaining contractual term (in years)		8.15		7.72
Weighted average exercise price	$	5.01	$	2.26
Weighted average fair value	$	3.85	$	1.52
Aggregate intrinsic value (in thousands)	$	92,000	$	34,000

As of September 30, 2014, unrecognized share-based compensation cost related to unvested stock options was $8,982,000.