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Stockholders' Equity
 3 Months Ended
Sep. 30, 2014
Equity [Abstract]  
Stockholders' Equity
7. Stockholders’ Equity

In December 2013, the Company entered into an at-the-market (“ATM”) program pursuant to which the Company may, at its option, offer and sell shares of its common stock from time to time for an aggregate offering price of up to $19.2 million, representing the then remaining balance of the Company’s shelf registration statement. In connection with execution of the ATM program, the Company incurred transaction costs of $153,000. In addition, the Company pays the sales agent a commission of up to 3.0% of the gross proceeds from the sale of such shares. During the three months ended September 30, 2014, the Company did not sell any shares under this program.

In July 2013, the Company sold 3,494,550 shares of its common stock in an underwritten public offering at a price of $3.10 per share for gross proceeds of $10.8 million. Underwriting commissions and other share issue costs approximated $890,000.

Warrants to Purchase Common Shares

During each of the three month periods ended September 30, 2014 and 2013, there were a total of 1,176,105 outstanding and exercisable warrants to purchase common shares at a weighted-average exercise price of $3.67. At September 30, 2014, the remaining term of these warrants ranged from 1.3 to 2.9 years, representing a weighted average period of 2.1 years.

 

Incentive Plan

The Company’s 2008 Incentive Plan (the “2008 Plan”) provides for the issuance of stock options and other stock awards to directors, employees and consultants. At September 30, 2014, a total of 6,341,255 shares of common stock were authorized for issuance under the 2008 Plan, of which 1,440,497 were available for grant of future awards. Shares issuable under the 2008 Plan are subject to an annual increase pursuant to the terms of the plan. The following table provides a reconciliation of stock option activity under the 2008 Plan for the three months ended September 30, 2014:

 

     Number of
Options		     Weighted
Average
Exercise
Price		      Weighted
Average
Remaining
Contractual
Life		      Aggregate
Intrinsic
Value		  
                  (in years)      (in thousands)  

Outstanding at July 1, 2014

      3,791,001      $ 3.08         

Granted

      456,200        4.47         

Exercised

      (39,037 )      1.43         

Forfeited

      (2,125 )      5.05         
  

 

 

    

 

 

        

Outstanding at September 30, 2014

      4,206,039      $ 3.24         6.63       $ 5,268   
  

 

 

    

 

 

     

 

 

     

 

 

  

Outstanding at September 30, 2014 - vested or unvested and expected to vest

      4,117,608      $ 3.23         6.58       $ 5,217   
  

 

 

    

 

 

     

 

 

     

 

 

  

Exercisable at September 30, 2014

      2,960,677      $ 3.02         5.73       $ 4,396   
  

 

 

    

 

 

     

 

 

     

 

 

  

During the three months ended September 30, 2014, the Company granted 456,200 options to employees with ratable annual vesting over 4 years and a 10-year term. The weighted-average grant date fair value of these option grants was $3.44 per share. A total of 534,158 options vested during the three months ended September 30, 2014. In determining the grant date fair value of options, the Company uses the Black-Scholes option pricing model. The Company calculated the Black-Scholes value of options awarded during the three months ended September 30, 2014 based on the following key assumptions:

 

Option life (in years)

      6.25   

Stock volatility

      93 % 

Risk-free interest rate

      2.00 % 

Expected dividends

      0 % 

Stock-Based Compensation Expense

The Company’s statements of comprehensive income (loss) included total compensation expense from stock-based payment awards for the three months ended September 30, 2014 and 2013, as follows (in thousands):

 

     Three Months Ended September 30,  
     2014      2013  

Compensation expense included in:

      

Research and development

    $ 112       $ 77   

General and administrative

      197         140   
  

 

 

     

 

 

  
   $ 309       $ 217   
  

 

 

     

 

 

  

At September 30, 2014, there was approximately $2.1 million of unrecognized compensation expense related to unvested options under the 2008 Plan, which is expected to be recognized as expense over a weighted average period of approximately 2.0 years.