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Note 2 - Stock-based Compensation | 3 Months Ended
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Mar. 31, 2019
Notes to Financial Statements |
Share-based Payment Arrangement [Text Block] | Note 2 — Stock-Based Compensation As of March 31, 2019, the Company had two stock-based employee compensation plans, the Stock Incentive Plan (“Incentive Plan”) and the Employee Stock Purchase Plan (“ESPP”). The Incentive Plan was amended and restated in September 2018 and approved by the Company’s stockholders in October 2018. The ESPP was amended and restated in March 2014 and approved by the Company’s stockholders in May 2014. Stock-based compensation expense of $3,317 ( $3,166 of expense related to the Incentive Plan and $151 of expense related to the ESPP) was recognized during the first three months of 2019, while $2,903 ( $2,820 of expense related to the Incentive Plan and $83 of expense related to the ESPP) was recognized during the first three months of 2018. There was approximately $27,594 of total unrecognized compensation cost related to non-vested stock option awards and restricted stock unit awards granted by the Company as of March 31, 2019. That cost is expected to be recognized as follows: $8,033 during the remainder of 2019, $8,310 in 2020, $6,333 in 2021, $4,849 in 2022 and $69 in 2023. In addition, the Company has outstanding performance-based stock options for which no compensation expense is recognized until “performance” has occurred and the award vests. Stock Incentive Plan The Company grants stock option awards and restricted stock unit awards to its employees, directors, and consultants under the Incentive Plan. Under the Incentive Plan, stock option awards are granted with an exercise price equal to the market price of the Company’s stock at the date of grant. Stock option awards and restricted stock units granted to employees generally vest 25% each year until fully vested after four years. In August 2013 and December 2014, the Company issued 1,032 and 1,250 performance-based stock options, respectively. These awards vest upon successful completion of specific development milestones. As of March 31, 2019, 75% of the August 2013 grants have vested based upon achievement of three milestones. As of March 31, 2019, 30% of the December 2014 grants have vested. Thus, as of March 31, 2019, 25% of the August 2013 performance-based grants and 70% of the December 2014 performance-based grants remain unvested and no compensation expense has been recognized for these portions of the previously issued performance-based grants. Stock option awards granted to non-employee directors of the Company generally vest monthly over one year. All stock option awards have contractual terms of 5 to 10 years. The vesting exercise provisions of all awards granted under the Incentive Plan are subject to acceleration in the event of certain stockholder-approved transactions, or upon the occurrence of a change in control as defined in the Incentive Plan. Related activity under the Incentive Plan is as follows:
|  | Awards Available |  | Options Outstanding |  | Weighted Average Exercise Price
Balance December 31, 2018 |  |  | 805 |  |  |  | 17,491 |  |  | $ | 6.49 |
Restricted stock unit awards granted |  |  | — |  |  |  | — |  |  |  | — |
Restricted stock unit awards cancelled |  |  | — |  |  |  | — |  |  |  | — |
Stock option awards granted |  |  | (437 | ) |  |  | 437 |  |  |  | 8.91 |
Stock option awards exercised |  |  | — |  |  |  | (155 | ) |  |  | 3.42 |
Stock option awards cancelled |  |  | 78 |  |  |  | (78 | ) |  |  | 6.35 |
Balance March 31, 2019 |  |  | 446 |  |  |  | 17,695 |  |  | $ | 6.58 |
As of March 31, 2019, there were 3 restricted stock unit awards outstanding. For stock option awards granted under the Incentive Plan during the first three months of 2019 and 2018, the fair value was estimated on the date of grant using a Black-Scholes option pricing model and the assumptions noted in the table below. The weighted average grant date fair value per share of the awards granted during the first three months of 2019 and 2018 was $6.07 and $3.72, respectively. The fair value of the stock option awards is amortized to expense over the vesting periods using a straight-line expense attribution method. The following table summarizes the key assumptions used by the Company to value the stock option awards granted during the first three months of 2019 and 2018. The expected life is based on the average of the assumption that all outstanding stock option awards will be exercised at full vesting and the assumption that all outstanding stock option awards will be exercised at the midpoint of the current date (if already vested) or at full vesting (if not yet vested) and the full contractual term. The expected volatility represents the historical volatility on the Company’s publicly traded common stock. The Company has assumed no expected dividend yield, as dividends have never been paid to stock or option holders and will not be paid for the foreseeable future. The weighted average risk-free interest rate is the implied yield currently available on zero -coupon government issues with a remaining term equal to the expected term. Weighted Average Assumptions for Stock Option Awards Granted to Employees and Directors under the Incentive Plan
|  | 2019 |  | 2018
Expected Life in Years |  |  | 5.5 |  |  |  | 5.5 |
Expected Volatility |  |  | 81.0 | % |  |  | 82.0 | %
Expected Dividend Yield |  |  | 0.0 | % |  |  | 0.0 | %
Risk-Free Interest Rate |  |  | 2.5 | % |  |  | 2.4 | %
Employee Stock Purchase Plan (“ESPP”) The Company has reserved a total of 1,475 shares of common stock to be purchased under the ESPP, of which 187 shares remain available for purchase at March 31, 2019. Eligible employees may authorize up to 15% of their salary to purchase common stock at the lower of 85% of the beginning or 85% of the ending price during six -month purchase intervals. No more than 3 shares may be purchased by any one employee at the six -month purchase dates and no employee may purchase stock having a fair market value at the commencement date of $25 or more in any one calendar year. The Company issued 47 shares during the first three months of 2019 under the ESPP. Compensation expense for shares purchased under the ESPP related to the purchase discount and the “look-back” option were determined using a Black-Scholes option pricing model.

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