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Stock-Based Compensation
3 Months Ended
Mar. 31, 2019
Stock-Based Compensation [Abstract]  
Stock-Based Compensation

7. Stock-Based Compensation



Stock Option Plan



In June 2016, the Company’s stockholders approved the 2016 Equity Incentive Plan (the “2016 Plan”). The 2016 Plan provides for the issuance of incentive awards in the form of non-qualified and incentive stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards and performance-based stock awards. The awards may be granted by the Company’s Board of Directors to its employees, directors and officers and to consultants, agents, advisors and independent contractors who provide services to the Company or to a subsidiary of the Company. The exercise price for stock options must not be less than the fair market value of the underlying shares on the date of grant. Stock options expire no later than ten years from the date of grant and generally vest and typically become exercisable over a four-year period following the date of grant. Upon the exercise of stock options, the Company issues the resulting shares from shares reserved for issuance under the 2016 Plan. Under the 2016 Plan, the number of shares authorized for issuance automatically increases annually beginning January 1, 2017 and through January 1, 2026. On January 1, 2019, the number of shares of common stock authorized for future issuance was increased by 1,614,700 shares. 



Share-based Compensation



The Company estimates the fair value of stock options with performance and service conditions using the Black-Scholes valuation model. Compensation expense related to stock options granted is measured at the grant date based on the estimated fair value of the award and is recognized on a straight-line basis over the requisite service period.



The table below summarizes the total stock-based compensation expense included in the Company’s consolidated statements of operations for the periods presented:





 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

Three Months Ended March 31,

 



 

2019

 

2018

 



 

 

 

 

 

Research and development

 

$

28,000 

 

$

37,000 

 

General and administrative

 

 

71,000 

 

 

85,000 

 

Total stock-based compensation

 

$

99,000 

 

$

122,000 

 





Stock option transactions during the three months ended March 31, 2019 are presented below:



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

Weighted

 

 

 



 

 

 

 

 

 

 

Average

 

 

 



 

 

 

 

 

Weighted

 

Remaining

 

 

 



 

 

 

 

 

Average

 

Contractual

 

Aggregate



 

 

 

 

 

Exercise

 

Term

 

Intrinsic



 

 

Shares

 

Price

 

(Years)

 

Value

Outstanding at December 31, 2018

 

 

 

1,150,065 

 

$

3.08 

 

 

8.03 

 

$

 -

Granted

 

 

 

 -

 

 

 -

 

 

 

 

 

 

Forfeited/Cancelled

 

 

 

(286,173)

 

 

0.95 

 

 

 

 

 

 

Outstanding at March 31, 2019

 

 

 

863,892 

 

$

3.79 

 

 

7.54 

 

$

 -

Vested and expected to vest at March 31, 2019

 

 

 

863,892 

 

$

3.79 

 

 

7.54 

 

$

 -

Exercisable at March 31, 2019

 

 

 

502,392 

 

$

5.11 

 

 

6.83 

 

$

 -





The aggregate intrinsic value of options at March 31, 2019 is based on the Company’s closing stock price on that date of $0.30 per share. As of March 31, 2019, there was $0.4 million of total unrecognized compensation expense related to unvested stock options, which the Company expects to recognize over the weighted average remaining period of 1.88 years.



Shares Reserved For Future Issuance



As of March 31, 2019, the Company had reserved shares of its common stock for future issuance as follows:





 

 

 



 

 

 



 

Shares Reserved

Stock options outstanding

 

 

863,892 

Employee stock purchase plan

 

 

76,472 

Available for future grants under the 2016 Plan

 

 

2,347,099 

Warrants outstanding

 

 

26,480,505 

Total shares reserved

 

 

29,767,968