Employee and Consultant Equity-Based Compensation

9 Months Ended

Sep. 30, 2016

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

Employee and Consultant Equity-Based Compensation

NOTE 11. EMPLOYEE AND CONSULTANT EQUITY-BASED COMPENSATION

The following table summarizes option activity under all plans during the nine-month period ending September 30, 2016:

Stock Option Activity
	Number of Shares		Weighted Average Exercise Price per Share
Options outstanding January 1, 2016	6,167,170		6.91
Granted	998,600		13.82
Forfeited	(125,008	)	19.90
Exercised	(66,764	)	8.64
Expired	(2,689	)	15.85
Options Outstanding September 30, 2016	6,971,309		7.64

The table below summarizes the resulting weighted average inputs used to calculate the estimated fair value of options awarded for during the periods shown below:

Black-Scholes Assumptions for Options Granted
	Three Months Ended
	September 30, 2016	September 30, 2015
Expected term (in years)	6.46	6.37
Volatility	89%	91%
Expected dividends	—	—
Risk free interest rates	1.30%	1.79%
Weighted average fair value	$15.40	$15.94

The following table shows summary information for outstanding options, options that are exercisable (vested) and outstanding options that are either vested or expected to vest as of September 30, 2016:

Stock Option Supplemental Information
	Options Outstanding		Options Exercisable		Options Vested and Expected to Vest
Number of options	6,971,309		4,451,559		6,837,977
Weighted average remaining contractual term (in years)	6.84		6.14		6.80
Weighted average exercise price	$	7.64	$	4.94	$	7.50
Weighted average fair value	$	5.90	$	3.72	$	5.79
Aggregate intrinsic value (in thousands)	$	136,748	$	99,339	$	135,135

The following table summarizes restricted stock unit activity during the nine-month period ending September 30, 2016:

Restricted Stock Unit (RSU) Activity
	Number of Shares	Weighted Average Grant Date Fair Value per Share
RSUs Outstanding January 1, 2016	40,250	20.91
Granted	—	—
Forfeited	—	—
Vested/released	—	—
RSUs outstanding September 30, 2016	40,250	20.91

The expense recognized on Company’s Statements of Operations and Comprehensive Loss related to options is summarized below:

Equity-Based Compensation Expenses (in thousands)
	Three Months Ended				Six Months Ended
	9/30/2016		9/30/2015		9/30/2016		9/30/2015
Research and development	$	504	$	406	$	1,168	$	1,842
Sales, general and administrative	2,166		1,404		5,423		4,153
Equity-based compensation expense	$	2,670	$	1,810	$	6,591	$	5,995

As of September 30, 2016, unrecognized equity-based compensation cost related to unvested stock options and unvested restricted stock units was $12.0 million and $409,000 respectively. This is expected to be recognized over the years 2016 through 2021.