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Stock Based Compensation | 9 Months Ended
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Sep. 30, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] |
Stock Based Compensation |
6. | Stock Based Compensation
2018 Omnibus Incentive Plan In June 2018, stockholders of the Company approved the Company’s 2018 Omnibus Incentive Plan (the “2018 Plan”). The 2018 Plan had previously been approved by the Company’s Board of Directors (the “Board”) and the Compensation Committee of the Board, subject to stockholder approval. The 2018 Plan became effective on June 13, 2018 and provided an additional 1,500,000 stock options, following receipt of the requisite stockholder approval. The 2018 Plan replaces the Company’s 2015 Stock Incentive Plan, as amended (the “2015 Plan”). All awards outstanding under the 2015 Plan will remain in effect in accordance with their respective terms. The following table summarizes stock option activity under the Company’s equity incentive plans and related information:
|  | Number of Shares Underlying Outstanding Options |  |  | Weighted- Average Exercise Price |  |  | Weighted-Average Remaining Contractual Term (Years) |
Outstanding — December 31, 2017 |  |  | 821,741 |  |  | $ | 13.69 |  |  |  | 9.17 |
Options granted |  |  | 564,050 |  |  | $ | 13.43 |  |  |  |  |
Options exercised |  |  | (7,707 | ) |  | $ | 4.63 |  |  |  |  |
Options expired |  |  | (15,667 | ) |  | $ | 158.94 |  |  |  |  |
Options canceled/forfeited |  |  | (43,315 | ) |  | $ | 7.76 |  |  |  |  |
Outstanding — September 30, 2018 |  |  | 1,319,102 |  |  | $ | 12.10 |  |  |  | 8.92 |
Exercisable — September 30, 2018 |  |  | 344,273 |  |  | $ | 19.48 |  |  |  | 8.06 |
Valuation Assumptions The Company estimated the fair value of stock options granted using the Black-Scholes option-pricing formula and a single option award approach. Due to its limited history as a public company and limited number of sales of its common stock, the Company estimated its volatility considering a number of factors including the use of the volatility of comparable public companies. The expected term of options granted under the Plan, all of which qualify as “plain vanilla” per SEC Staff Accounting Bulletin 107, is determined based on the simplified method due to the Company’s limited operating history and is 5.97 years based on the average between the vesting period and the contractual life of the option. The risk-free rate is based on the yield of a U.S. Treasury security with a term consistent with the option. This fair value is being amortized ratably over the requisite service periods of the awards, which is generally the vesting period. The fair value of employee stock options was estimated using the following weighted-average assumptions for the nine months ended September 30, 2018 and 2017:
|  | Nine Months Ended September 30, |
|  | 2018 |  |  | 2017 |
Employee Stock Options: |  |  |  |  |  |  |  |
Risk-free interest rate |  |  | 2.66 | % |  |  | 2.02 | %
Expected term (in years) |  |  | 5.97 |  |  |  | 5.99 |
Dividend yield |  |  | — |  |  |  | — |
Volatility |  |  | 93.60 | % |  |  | 110.42 | %
Weighted-average fair value of stock options granted |  | $ | 10.28 |  |  | $ | 3.79 |
Total stock-based compensation recognized was as follows (in thousands):
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
Research and development |  | $ | 161 |  |  | $ | 62 |  |  | $ | 413 |  |  | $ | 97 |
General and administrative(1) |  |  | 541 |  |  |  | 263 |  |  |  | 1,445 |  |  |  | 459 |
Total stock-based compensation |  | $ | 702 |  |  | $ | 325 |  |  | $ | 1,858 |  |  | $ | 556 |
| (1) | 2018 includes $0.1 million in modification stock-based compensation expense related to a Board member’s departure.
As of September 30, 2018, 1,349,818 shares of common stock were available for future grant and 1,319,102 options to purchase shares of common stock were outstanding. As of September 30, 2018, the Company had unrecognized employee stock-based compensation expense of $6.9 million, related to unvested stock awards, which is expected to be recognized over an estimated weighted-average period of 2.91 years. 2018 Employee Stock Purchase Plan In June 2018, the Company’s stockholders approved the 2018 Employee Stock Purchase Plan (the “ESPP”). The 2018 ESPP had previously been approved by the Board and the Compensation Committee of the Board, subject to stockholder approval which became effective as of June 13, 2018. Under the ESPP, employees meeting certain specific employment qualifications are eligible to participate and can purchase shares of common stock semi-annually through payroll deductions at the lower of 85% of the fair market value of the stock at the commencement or end of the offering period. The ESPP permits eligible employees to purchase shares of common stock through payroll deductions for up to 15% of qualified compensation. A total of 120,000 shares of common stock may be granted in accordance with the terms of the ESPP. As of September 30, 2018, no shares of common stock have been issued to employees participating in the ESPP and 120,000 shares are available for issuance under the ESPP. Compensation expense, representing the discount to the quoted market price, for the ESPP was immaterial as of September 30, 2018.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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