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Accounting for Stock-Based Compensation
 9 Months Ended
Sep. 30, 2016
Accounting for Stock-Based Compensation

9. Accounting for Stock-Based Compensation

Total stock-based compensation expense recognized in the accompanying condensed consolidated statements of operations for the three and nine months ended September 30, 2016 and 2015 was as follows (in thousands):

 

     Three Months Ended
September 30,		      Nine Months Ended
September 30,		  
     2016      2015      2016      2015  

Stock-based compensation

    $ 1,502       $ 2,600       $ 4,130       $ 6,378   
  

 

 

     

 

 

     

 

 

     

 

 

  

During the three months ended March 31, 2016, the Company issued stock awards to employees with a four-year vesting schedule. The grant date fair value of the 2,364,200 restricted stock units and 4,920,267 stock options issued was $2.2 million and $3.0 million, respectively, with a grant date fair value per share of $0.92 and $0.61, respectively.

During the three months ended June 30, 2016, the Company issued stock awards to employees with a four-year vesting schedule. The grant date fair value of the 1,088,050 restricted stock units and 1,140,200 stock options issued was $1.0 million and $0.7 million respectively, with a grant date fair value per share of $0.91 and $0.62, respectively.

During the three months ended September 30, 2016, the Company issued stock awards to employees with a four-year vesting schedule. The grant date fair value of the 374,900 restricted stock units and 272,900 stock options issued was $0.3 million and $0.1 million, respectively, with a grant date fair value per share of $0.84 and $0.55, respectively.

As of September 30, 2016, there was $5.0 million and $5.8 million of unrecognized compensation cost related to options and restricted stock units, respectively, which are expected to be recognized over the remaining weighted average vesting period of 3 years.

During the three months ended June 30, 2016, the Company granted certain employees stock options to purchase an aggregate of 4,015,000 shares of common stock at a weighted average exercise price of $0.91 per share. These awards vest in four equal tranches upon the achievement of certain product sales targets. The grant date fair value of these awards is $2.5 million with a grant date fair value of $0.63 per share, as determined using a Black-Scholes option pricing model. As of June 30, 2016, no compensation cost was recognized related to these awards as, at that time, it was not considered probable of achievement within the next twelve months.

During the three months ended September 30, 2016, the Company granted certain employees stock options to purchase an aggregate of 470,000 shares of common stock at a weighted average exercise price of $0.84 per share. These awards vest in four equal tranches upon the achievement of certain product sales targets. The grant date fair value of these awards is $0.3 million with a grant date fair value of $0.55 per share, as determined using a Black-Scholes option pricing model.

As of September 30, 2016, the Company reviewed the probability of achieving the performance conditions for each of the four vesting tranches and determined that it was probable that the Company would achieve the first vesting tranche in September 2017. Therefore, the Company recorded a non-material cumulative catchup of the expense from the grant date through September 30, 2016 and will record the unrecognized compensation cost related to the first tranche in the amount of $0.4 million through September 30, 2017. The Company further determined that no compensation costs would be recognized for the second, third and fourth vesting tranches as it had not been determined that it was probable.