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Stock-Based Compensation | 9 Months Ended
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Sep. 30, 2016
Stock-Based Compensation [Abstract] |
Stock-Based Compensation | Note 9 – Stock-Based Compensation Stock Options The Amended and Restated 2005 Stock Incentive Plan (“2005 Plan”) expired in February 2015 and no new awards may be made under such plan, although awards will continue to be outstanding in accordance with their terms. Under the Company’s 2015 Stock Incentive Plan, as amended (“2015 Plan”), equity awards may be granted to officers, directors, employees and consultants of and advisors to the Company and any present or future subsidiary. The 2015 Plan authorizes the issuance of up to 31,000,000 shares of common stock under equity awards granted under the plan, including an increase of 6,000,000 shares approved at the Company’s 2016 annual meeting of stockholders. All such shares authorized for issuance under the 2015 Plan have been reserved. The 2015 Plan will expire on March 4, 2025. The 2015 Plan permits and the 2005 Plan permitted, the grant of stock options (including incentive stock options), restricted stock, stock appreciation rights and restricted stock units. In addition, under the 2015 Plan, unrestricted stock, stock units and performance awards may be granted. Stock options and stock appreciation rights generally have a maximum term of 10 years and may be or were granted with an exercise price that is no less than 100% of the fair market value of the Company’s common stock at the time of grant. Grants of stock options are generally subject to vesting over periods ranging from six months to four years. Stock Options Awards The following is a summary of option activity under the 2015 Plan and 2005 Plan for the nine months ended September 30, 2016:
|  | 2015 Plan |  | 2005 Plan |
|  | Stock Options |  | Weighted-Average Exercise Price |  | Stock Options |  | Weighted-Average Exercise Price |
Outstanding at January 1, 2016 |  |  | 8,357,003 |  | $ | 8.97 |  |  | 15,450,542 |  | $ | 3.31 |
Granted |  |  | 10,384,437 |  | $ | 5.10 |  |  | — |  | $ | — |
Exercised |  |  | — |  | $ | — |  |  | (694,163) |  | $ | 2.15 |
Canceled |  |  | (598,687) |  | $ | 7.29 |  |  | (247,375) |  | $ | 4.75 |
Outstanding at September 30, 2016 |  |  | 18,142,753 |  | $ | 6.81 |  |  | 14,509,004 |  | $ | 3.34 |
Shares exercisable at September 30, 2016 |  |  | 2,297,355 |  | $ | 8.56 |  |  | 10,559,379 |  | $ | 2.83 |
Shares available for grant at September 30, 2016 |  |  | 12,812,247 |  |  |  |  |  |  |  |  |  |
The fair value of stock options granted under the 2015 Plan and 2005 Plan was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30, |
|  | 2016 |  | 2015 |  | 2016 |  | 2015 |
Weighted-average Black- Scholes fair value of stock options granted |  |  | $3.34 |  |  | $4.70 |  |  | $2.50 |  |  | $4.43 |
Risk-free interest rate |  |  | 0.97%-1.09% |  |  | 1.32%-1.39% |  |  | 0.97%-1.70% |  |  | 1.19%-2.13% |
Dividend yield |  |  | 0% |  |  | 0% |  |  | 0% |  |  | 0% |
Volatility |  |  | 58.58%-59.02% |  |  | 54.93%-57.17% |  |  | 57.86%-68.28% |  |  | 53.58%-68.39% |
Expected term (in years) |  |  | 4.24 |  |  | 4.27-4.60 |  |  | 4.24-7.28 |  |  | 3.98-7.34 |
Expected forfeiture rate |  |  | 10.31% |  |  | 14.18%-16.33% |  |  | 0%-16.33% |  |  | 0%-16.33% |
The total aggregate intrinsic value and weighted-average remaining contractual term of stock options outstanding under the 2015 Plan and 2005 Plan as of September 30, 2016 was approximately $2.8 million and 7.8 years, respectively. The total aggregate intrinsic value and weighted-average remaining contractual term of stock options exercisable under the 2015 Plan and 2005 Plan as of September 30, 2016 was approximately $2.7 million and 6.3 years, respectively. The aggregate intrinsic value represents the total intrinsic value (the difference between the Company’s closing stock price on the last trading day of the period and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on September 30, 2016. This amount is subject to change based on changes to the closing price of the Company’s common stock. The aggregate intrinsic value of options exercised and vesting of restricted stock awards for the nine months ended September 30, 2016 and 2015 was $2.4 million and $9.0 million, respectively. Employee Stock Purchase Plan The Company’s Employee Stock Purchase Plan, as amended (the “ESPP”) currently authorizes an aggregate of 3,300,000 shares of common stock to be purchased, such aggregate will continue to increase 5% on each anniversary of its adoption up to a maximum of 4,000,000 shares. The number of authorized shares and the maximum number of shares both include an increase of 1,000,000 shares approved at the Company’s 2016 annual meeting of stockholders. The ESPP allows employees to purchase shares of common stock of the Company at each purchase date through payroll deductions of up to a maximum of 15% of their eligible compensation, at 85% of the lesser of the market price of the shares at the time of purchase or the market price on the beginning date of an option period (or, if later, the date during the option period when the employee was first eligible to participate). At September 30, 2016, there were 1,636,938 shares available for issuance under the ESPP. The ESPP is considered compensatory for financial reporting purposes. As such, the fair value of ESPP shares was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30, |
|  | 2016 |  | 2015 |  | 2016 |  | 2015 |
Range of Black-Scholes fair value of ESPP shares granted |  |  | $1.97-$4.76 |  |  | $1.20-$3.38 |  |  | $1.86-$4.76 |  |  | $1.06-$3.38 |
Risk-free interest rate |  |  | 0.32%-0.61% |  |  | 0.07%-0.35% |  |  | 0.22%-0.61% |  |  | 0.05%-0.35% |
Dividend yield |  |  | 0% |  |  | 0% |  |  | 0% |  |  | 0% |
Volatility |  |  | 43.03%-86.75% |  |  | 40.79%-64.24% |  |  | 43.03%-86.75% |  |  | 40.79%-64.24% |
Expected term (in years) |  |  | 0.5-2.0 |  |  | 0.5-2.0 |  |  | 0.5-2.0 |  |  | 0.5-2.0 |
Expected forfeiture rate |  |  | 5% |  |  | 5% |  |  | 5% |  |  | 5% |
Restricted Stock Awards The following is a summary of restricted stock awards activity for the nine months ended September 30, 2016:
|  | Number of Shares |  | Per Share Weighted-Average Grant-Date Fair Value |
Outstanding and Unvested at January 1, 2016 |  |  | 25,000 |  | $ | 8.72 |
Restricted stock granted |  |  | 45,000 |  | $ | 4.99 |
Restricted stock vested |  |  | — |  | $ | — |
Restricted stock forfeited |  |  | (25,000) |  | $ | 8.72 |
Outstanding and Unvested at September 30, 2016 |  |  | 45,000 |  | $ | 4.99 |
The Company recorded all stock-based compensation expense in the consolidated statements of operations as follows (in thousands):
|  | Three Months Ended September 30, |  | Nine Months Ended September 30, |
|  | 2016 |  | 2015 |  | 2016 |  | 2015 |
Research and development |  | $ | 2,917 |  | $ | 2,240 |  | $ | 9,108 |  | $ | 4,361 |
General and administrative |  |  | 2,239 |  |  | 2,525 |  |  | 6,272 |  |  | 4,917 |
Total stock-based compensation expense |  | $ | 5,156 |  | $ | 4,765 |  | $ | 15,380 |  | $ | 9,278 |
As of September 30, 2016, there was approximately $45.7 million of total unrecognized compensation expense (net of estimated forfeitures) related to unvested stock options, ESPP and restricted stock awards. This unrecognized non-cash compensation expense is expected to be recognized over a weighted-average period of 1.4 years, and will be allocated between research and development and general and administrative expenses accordingly. This estimate does not include the impact of other possible stock-based awards that may be made during future periods.

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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 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=65895303&loc=d3e17540-113929 Reference 2: 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=68057994&loc=d3e25284-112666 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14) -URI http://asc.fasb.org/extlink&oid=27013229&loc=d3e301413-122809 Reference 4: 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 5: 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 6: 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 + Details
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