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Stockholders' Equity
 3 Months Ended
Mar. 31, 2013
Equity [Abstract]  
Stockholders' Equity
Stockholders’ Equity

On May 31, 2012, the Company’s stockholders approved the amendment and restatement of the Company's 2002 Stock Incentive Plan to increase the number of shares available for issuance by 1.8 million shares.

Stock Option Activity

The following is a summary of the Company’s stock option plan activity and related information:

 
Shares
 
Weighted
Average
Exercise
Price
 
Weighted Average
Remaining
Contractual Term in
Years
 
Aggregate
Intrinsic Value
(In thousands)
Balance as of December 31, 2012
1,626,606

 
$
14.9

 
7.8
 
$
11,358

Granted
371,750

 
21.92

 
 
 
 
Exercised
(23,401
)
 
13.96

 
 
 
 
Forfeited
(39,375
)
 
19.13

 
 
 
 
Cancelled
(24,123
)
 
30.63

 
 
 
 
Balance as of March 31, 2013
1,911,457

 
15.99

 
8.1
 
21,635

Exercisable as of March 31, 2013
848,436

 
15.78

 
7.0
 
10,482

Options vested and expected to vest as of March 31, 2013
1,911,457

 
15.99

 
8.1
 
21,635



The weighted-average grant date fair value of all stock options granted during the three months ended March 31, 2013 was $21.92 per share. The total intrinsic value of all options exercised during the three months ended March 31, 2013 and 2012 was approximately $0.2 million and $0.1 million, respectively. As of March 31, 2013, there was $8.8 million of total unrecognized compensation cost related to nonvested stock options. That cost is expected to be recognized over a weighted-average period of 2.9 years.

Cash received from options exercised during the three months ended March 31, 2013 and 2012 was approximately $0.3 million and $0.2 million, respectively. There is no current tax benefit related to options exercised because of Net Operating Losses (NOLs) for which a full valuation allowance has been established.

As of March 31, 2013, 1.5 million shares were available for future option grants or direct issuance under the Company's 2002 Stock Incentive Plan, as amended.

Restricted Stock Activity

Restricted stock activity for the three months ended March 31, 2013 is as follows:

 
Shares
 
Weighted-
Average Grant
Date Fair Value
Nonvested at December 31, 2012
141,561

 
$
12.52

Granted
36,775

 
21.92

Vested
(40,512
)
 
21.91

Nonvested at March 31, 2013
137,824

 
$
12.27



The weighted-average grant-date fair value of restricted stock granted during the three months ended March 31, 2013 was $21.92 per share. As of March 31, 2013, there was $1.4 million of total unrecognized compensation cost related to nonvested restricted stock. That cost is expected to be recognized over a weighted-average period of 1.7 years.

Employee Stock Purchase Plan

The Company's Employee Stock Purchase Plan, as amended and restated (the "Amended ESPP") allows participants to purchase up to 1,250 shares of Ligand common stock during each offering period, but in no event may a participant purchase more than 1,250 shares of common stock during any calendar year. The length of each offering period is six months, and employees are eligible to participate in the first offering period beginning after their hire date.

The Amended ESPP allows employees to purchase Ligand common stock at the end of each six month period at a price equal to 85% of the lesser of fair market value on either the start date of the period or the last trading day of the period (the "Lookback Provision"). The 15% discount and the Lookback Provision make the Amended ESPP compensatory.  There were no shares of common stock issued under the amended ESPP during the three months ended March 31, 2013 and 2012. The Company recorded compensation expense related to the ESPP of $5,200 and $5,900 for the three months ended March 31, 2013 and 2012, respectively. As of March 31, 2013, 86,528 shares were available for future purchases under the Amended ESPP.

Warrants

As of March 31, 2013, 163,568 warrants with an exercise price of $179.40 per warrant were outstanding to purchase an aggregate of 129,360 shares of the Company’s common stock. These warrants expire in April 2013.  The series of warrants was assumed in the acquisition of Neurogen Corporation.

Public Offering

In October 2011, we filed a Registration Statement on Form S-3 with the Securities and Exchange Commission ("SEC") for the issuance and sale of up to $30 million of equity or other securities, proceeds from which will be used for general corporate purposes. The Form S-3 provides additional financial flexibility for us to sell shares or other securities as needed at any time. As of March 31, 2013, 302,750 common shares have been issued under this registration statement for total net proceeds of approximately $5.5 million.

During the quarter ended March 31, 2013 and 2012, the Company did not issue any common shares pursuant to its at-the-market equity issuance plan.