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Stockholders' Equity
 3 Months Ended
Sep. 30, 2015
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-month periods ended September 30, 2015 and 2014, the Company did not sell any shares under this program.

Warrants to Purchase Common Shares

During each of the three-month periods ended September 30, 2015 and 2014, a total of 1,176,105 warrants to purchase common shares were outstanding and exercisable at a weighted-average exercise price of $3.67. At September 30, 2015, the remaining term of these warrants ranged from approximately 4 months to 1.9 years, representing a weighted average period of 1.1 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, 2015, a total of 7,091,255 shares of common stock were authorized for issuance under the 2008 Plan, of which 1,427,791 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, 2015:

 

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

Outstanding at July 1, 2015

      4,447,975       $ 3.36         

Granted

      446,000         4.09         

Exercised

      (5,000 )       1.81         
  

 

 

     

 

 

        

Outstanding at September 30, 2015

      4,888,975       $ 3.42         6.33       $ 2,839   
  

 

 

     

 

 

     

 

 

     

 

 

  

Outstanding at September 30, 2015 - vested and unvested and expected to vest

      4,795,301       $ 3.41         6.28       $ 2,829   
  

 

 

     

 

 

     

 

 

     

 

 

  

Exercisable at September 30, 2015

      3,490,538       $ 3.19         5.36       $ 2,667   
  

 

 

     

 

 

     

 

 

     

 

 

  

During the three months ended September 30, 2015, the Company granted 446,000 options to employees with ratable annual vesting over 4 years and a 10-year term. The weighted-average grant date fair value of these options was $2.87 per share. A total of 601,355 options vested during the three months ended September 30, 2015. 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, 2015 based on the following key assumptions:

 

Option life (in years)

      6.25   

Stock volatility

      80 % 

Risk-free interest rate

      1.89 % 

Expected dividends

      0 % 

Stock-Based Compensation Expense

The Company’s statements of comprehensive (loss) income included total compensation expense from stock-based payment awards for the three months ended September 30, 2015 and 2014, as follows (in thousands):

 

     Three Months Ended September 30,  
     2015      2014  

Compensation expense included in:

      

Research and development

    $ 145       $ 112   

General and administrative

      260         197   
  

 

 

     

 

 

  
   $ 405       $ 309   
  

 

 

     

 

 

  

At September 30, 2015, there was approximately $2.4 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.