Share-Based Payments

9 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

The Company measures the fair value of stock options and restricted stock units ("RSUs") issued to employees and nonemployees as of the grant date for the recognition of 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 September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Cost of products	$	4	$	14	$	16	$	64
Cost of services	52		51		169		207
Research and development	1,838		1,681		5,565		7,315
Selling, general and administrative	3,529		6,386		8,788		20,754
Total	$	5,423	$	8,132	$	14,538	$	28,340

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 September 30, 2019, there were 380,930 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 September 30, 2019, there were 25,000,000 shares authorized for issuance under the 2013 Plan, of which 9,149,553 stock options and 2,108,509 RSUs were outstanding and 8,496,486 shares were available for grant.

In April 2019, Intrexon adopted the Intrexon Corporation 2019 Incentive Plan for Non-Employee Service Providers (the "2019 Plan"), which became effective upon shareholder approval in June 2019. The 2019 Plan permits the grant of share-based awards, including stock options, restricted stock awards, and RSUs, to non-employee service providers, including board members. As of September 30, 2019, there were 5,000,000 shares authorized for issuance under the 2019 Plan, of which 4,513,060 were available for grant.

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	1,536,075		6.53
Exercised	(19,887	)	(3.17		)
Forfeited	(824,192	)	(29.81		)
Expired	(2,254,576	)	(39.05		)
Balances at September 30, 2019	9,530,483		21.77			6.68
Exercisable at September 30, 2019	6,306,218		24.97			5.81

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	2,278,460		6.59
Vested	(927,880	)	(9.25		)
Forfeited	(212,412	)	(9.20		)
Balances at September 30, 2019	2,108,509		8.48			1.33

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 $444 and $499 for the three months ended September 30, 2019 and 2018, respectively, and $1,425 and $1,468 for the nine months ended September 30, 2019 and 2018, respectively.