Share-Based Payments

3 Months Ended

Mar. 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

The Company records the fair value of stock options and restricted stock units ("RSUs") issued to employees and nonemployees as of the grant date as stock-based compensation expense. Stock-based compensation expense for employees and nonemployees is recognized over the requisite service period, which is typically the vesting period. Stock-based compensation costs included in the consolidated statements of operations are presented below:



	Three Months Ended March 31,
	2019		2018
Cost of products	$	8	$	25
Cost of services	65		77
Research and development	1,845		3,258
Selling, general and administrative	7,136		8,002
Total	$	9,054	$	11,362

Intrexon Stock Option Plans

In April 2008, Intrexon adopted the 2008 Equity Incentive Plan (the "2008 Plan") for employees and nonemployees pursuant to which Intrexon's board of directors granted share based awards, including stock options, to officers, key employees and nonemployees. Upon the effectiveness of the 2013 Omnibus Incentive Plan (the "2013 Plan"), no new awards may be granted under the 2008 Plan. As of March 31, 2019, there were 393,098 stock options outstanding under the 2008 Plan.

Intrexon adopted the 2013 Plan for employees and nonemployees pursuant to which Intrexon's board of directors may grant share based awards, including stock options and shares of common stock, to employees, officers, consultants, advisors, and

nonemployee directors. The 2013 Plan became effective in August 2013, and as of March 31, 2019, there were 20,000,000 shares authorized for issuance under the 2013 Plan, of which 11,312,743 stock options and 2,288,017 RSUs were outstanding and 2,561,296 shares were available for grant. In April 2019, Intrexon's board of directors approved, subject to shareholder approval at Intrexon's annual meeting in June 2019, an increase of 5,000,000 shares of common stock to be reserved for issuance under the 2013 Plan.

Stock option activity was as follows:



	Number of Shares		Weighted Average Exercise Price			Weighted Average Remaining Contractual Term (Years)
Balances at December 31, 2018	11,093,063		$	27.95		6.81
Granted	864,575		6.39
Exercised	(17,811	)	(3.17		)
Forfeited	(167,234	)	(19.83		)
Expired	(66,752	)	(25.26		)
Balances at March 31, 2019	11,705,841		26.53			6.07
Exercisable at March 31, 2019	8,061,580		28.86			5.18

RSU activity was as follows:



	Number of Restricted Stock Units		Weighted Average Grant Date Fair Value			Weighted Average Remaining Contractual Term (Years)
Balances at December 31, 2018	970,341		$	13.82		1.43
Granted	1,737,410		7.03
Vested	(419,734	)	(11.60		)
Balances at March 31, 2019	2,288,017		9.07			1.98

Intrexon currently uses authorized and unissued shares to satisfy share award exercises.

The Company's Chief Executive Officer ("CEO") receives a base salary of $200 per month payable in fully-vested shares of Intrexon common stock with such shares subject to a three-year lock-up on resale. The monthly number of shares of common stock was calculated based on the closing price on the last trading day of each month and the shares were issued pursuant to the terms of a Restricted Stock Unit Agreement ("RSU Agreement") between Intrexon and the CEO pursuant to the terms of the 2013 Plan. The RSU Agreement, which is subject to renewal annually by the compensation committee of the board of directors of the Company, expired March 31, 2019. In April 2019, the Company entered into a new RSU agreement with its CEO through March 31, 2020. Under the new RSU agreement, the base salary and lock-up terms remained unchanged from the original RSU Agreement. However, the number of fully-vested shares of Intrexon common stock paid monthly will be calculated based on the volume weighted average of the price of Intrexon common stock over the 30 day period ending on the last calendar day of each month. The fair value of the shares issued as compensation for services is included in selling, general and administrative expenses in the Company's consolidated statements of operations and totaled $486 for the three months ended March 31, 2019 and 2018.

AquaBounty Stock Option Plans

In March 2016, AquaBounty's board of directors adopted the AquaBounty 2016 Equity Incentive Plan ("AquaBounty 2016 Plan") to replace the AquaBounty 2006 Equity Incentive Plan ("AquaBounty 2006 Plan"). The AquaBounty 2016 Plan provides for the issuance of incentive stock options, non-qualified stock options and awards of restricted and direct stock purchases to directors, officers, employees, and consultants of AquaBounty. The AquaBounty 2016 Plan was approved by AquaBounty's shareholders at its annual meeting in April 2016. Upon the effectiveness of the AquaBounty 2016 Plan, no new awards may be granted under the AquaBounty 2006 Plan.

As of March 31, 2019, there were 347,464 options outstanding under both AquaBounty plans, of which 326,382 were exercisable, at a weighted average exercise price of $6.98 per share.