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Stock-Based Compensation | 6 Months Ended
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Jun. 30, 2014
Stock-Based Compensation |
6. | Stock-Based Compensation
For the three months ended June 30, 2014 and 2013, the Company recorded stock-based compensation expense of $545,212 and $312,691, respectively, for share-based awards granted under the Second Amended and Restated 2001 Repligen Corporation Stock Plan (the “2001 Plan”) and the Repligen Corporation Amended and Restated 2012 Stock Option and Incentive Plan (the “2012 Plan,” and collectively with the 2001 Plan and the 1992 Repligen Corporation Stock Option Plan, the “Plans”). The Company recorded stock-based compensation expense of $852,637 and $562,762 for the six-month periods ended June 30, 2014 and 2013, respectively, for share-based awards granted under the Plans. The following table presents stock-based compensation expense included in the Company’s consolidated statements of comprehensive income:
|  | Three months ended June 30, |  |  | Six months ended June 30, |
|  | 2014 |  |  | 2013 |  |  | 2014 |  |  | 2013 |
Cost of product revenue |  | $ | 63,285 |  |  | $ | 11,428 |  |  | $ | 89,848 |  |  | $ | 23,093 |
Research and development |  |  | 80,392 |  |  |  | 36,081 |  |  |  | 111,995 |  |  |  | 43,721 |
Selling, general and administrative |  |  | 401,535 |  |  |  | 265,182 |  |  |  | 650,794 |  |  |  | 495,948 |
Total |  | $ | 545,212 |  |  | $ | 312,691 |  |  | $ | 852,637 |  |  | $ | 562,762 |
The 2012 Plan allows for the granting of incentive and nonqualified options to purchase shares of common stock, restricted stock and other equity awards. Incentive options granted to employees under the Plans generally vest over a four to five-year period, with 20%-25% vesting on the first anniversary of the date of grant and the remainder vesting in equal yearly installments thereafter. Nonqualified options issued to non-employee directors and consultants under the Plans generally vest over one year. Options granted under the Plans have a maximum term of ten years from the date of grant and generally, the exercise price of the stock options equals the fair market value of the Company’s common stock on the date of grant. At June 30, 2014, options to purchase 1,312,741 shares were outstanding under the Plans. At June 30, 2014, 2,818,751 shares were available for future grant under the Plans. The Company uses the Black-Scholes option pricing model to calculate the fair value of share-based awards on the grant date. The Company measures stock-based compensation cost at the grant date based on the estimated fair value of the award, and recognizes awards with service based vesting as expense over the employee’s requisite service period on a straight-line basis. The Company records the expense for share-based awards subject to performance-based milestone vesting over the remaining service period when management determines that achievement of the milestone is probable. Management evaluates whether the achievement of a performance-based milestone is probable as of the reporting date. The Company has no awards that are subject to market conditions. The Company recognizes stock-based compensation expense for options that are ultimately expected to vest, and accordingly, such compensation expense has been adjusted for estimated forfeitures. Information regarding option activity for the six months ended June 30, 2014 under the Plans is summarized below:
|  | Options Outstanding |  |  | Weighted- Average Exercise Price Per Share |  |  | Weighted- Average Remaining Contractual Term (in years) |  |  | Aggregate Intrinsic Value |
Options outstanding at January 1, 2014 |  |  | 1,610,988 |  |  | $ | 5.07 |  |  |  |  |  |  |  |  |
Granted |  |  | 339,698 |  |  |  | 12.37 |  |  |  |  |  |  |  |  |
Exercised |  |  | (573,238 | ) |  |  | 4.36 |  |  |  |  |  |  |  |  |
Forfeited/Cancelled |  |  | (64,707 | ) |  |  | 6.92 |  |  |  |  |  |  |  |  |
Options outstanding at June 30, 2014 |  |  | 1,312,741 |  |  | $ | 7.19 |  |  |  | 7.63 |  |  | $ | 20,475,525 |
Options exercisable at June 30, 2014 |  |  | 419,600 |  |  | $ | 4.05 |  |  |  | 5.11 |  |  | $ | 7,862,172 |
Vested and expected to vest at June 30, 2014 (1) |  |  | 1,211,138 |  |  | $ | 7.09 |  |  |  | 7.56 |  |  | $ | 19,013,813 |
(1) | This represents the number of vested options as of June 30, 2014 plus the number of unvested options expected to vest as of June 30, 2014 based on the unvested outstanding options at June 30, 2014 adjusted for estimated forfeiture rates of 8% for awards granted to non-executive level employees and 3% for awards granted to executive level employees.
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the closing price of the common stock on June 30, 2014 of $22.79 and the exercise price of each in-the-money option) that would have been received by the option holders had all option holders exercised their options on June 30, 2014. The weighted average grant date fair value of options granted during the six months ended June 30, 2014 and 2013 was $10.85 and $3.84, respectively. The total fair value of stock options that vested during the six months ended June 30, 2014 and 2013 was approximately $646,322 and $695,795, respectively. As of June 30, 2014, there was $4,328,098 of total unrecognized compensation cost related to unvested share-based awards. This cost is expected to be recognized over a weighted average remaining requisite service period of 3.16 years. The Company expects 791,538 unvested options to vest over the next five years.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
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