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Note 5 - Stockholders' Equity
 6 Months Ended
Jun. 30, 2015
Notes to Financial Statements  
Stockholders' Equity Note Disclosure [Text Block]
5. Stockholders’ Equity
 
2013 Common Stock Offering
 
In November 2013, we sold approximately 7.7 million shares of our common stock at a public offering price of $8.00 per share. We received total net proceeds of approximately $57.8 million (net of approximately $3.9 million in issuance costs).
 
2014 Common Stock Offering
 
In June 2014, we sold approximately 4.8 million shares of our common stock at a public offering price of $11.75 per share. In addition, as a component of the offering, we sold 600,000 pre-funded warrants to purchase shares of our common stock at a public offering price of $11.74 per share. The pre-funded warrants have an exercise price of $0.01 per share and expire on June 30, 2021. We received total net proceeds of approximately $58.9 million (net of approximately $4.0 million in issuance costs) from the sale of the common stock and the pre-funded warrants. The offering was made pursuant to an effective registration statement, which was previously filed with the SEC.
 
201
5
Common Stock Offering
 
In June 2015, we sold approximately 5.5 million shares of our common stock at a public offering price of approximately $24.75 per share. We received total net proceeds of approximately $128.2 million (net of approximately $8.4 million in issuance costs) from the sale of the common stock. The offering was made pursuant to two effective registration statements, which were previously filed with the SEC.
 
2011 Private Placement
Warrants
 
In June 2011, we sold shares of common stock and warrants to purchase common stock in a private placement. A total of 4.0 million warrants to purchase common stock at an exercise price of $3.60 per share were issued as part of this private placement. The warrants were immediately exercisable and expire on July 1, 2016. The warrants may be exercised for cash only, or, if a registration statement is not then effective and available for the resale of the shares of common stock issuable upon exercise of the warrants, by surrender of such warrant, or a portion of such warrant, by way of cashless exercise. There is no right to exercise the warrants to the extent that, after giving effect to such exercise the holder would beneficially own in excess of 9.99% of our outstanding shares of common stock or such other limit as may be designated by any particular purchaser. Each holder of the warrants can amend or waive the foregoing limitation by written notice to us, with such waiver taking effect only upon the expiration of a 61-day notice period.
 
On July 29, 2011, we filed a registration statement with the SEC to register for resale the shares and the shares of common stock issuable upon the exercise of the warrants. The registration statement was declared effective on August 4, 2011. We are obligated to maintain the effectiveness of the registration statement until the investors are able to sell shares and the shares of common stock underlying the warrants without limitation or restriction under Rule 144 of the Securities Act of 1933, as amended (“Rule 144”). There is currently only one investor who is an affiliate of ours and is therefore not able to sell without limitation under Rule 144, and that investor has agreed to waive its right to require us to maintain the effectiveness of the registration statement until it provides notice otherwise.
 
During the six months ended June 30, 2015, warrant holders exercised 260,480 warrants under the cashless exercise provision in each holder’s warrant, which resulted in the net issuance of 209,607 shares of common stock and no net cash proceeds to us. During the six months ended June 30, 2014, warrant holders exercised 144,040 warrants under the cashless exercise provision in the warrant agreement, which resulted in the net issuance of 108,409 shares of common stock and no net cash proceeds to us. As of June 30, 2015, 3,048,810 warrants from the June 2011 Private Placement remain outstanding.
 
Stock Option Exercises
 
For the six months ended June 30, 2015, 713,381 shares of common stock were issued pursuant to the exercise of stock options, resulting in proceeds to us of approximately $6,306,000. For the six months ended June 30, 2014, option holders exercised 504,217 stock options, a portion of which were exercised under the cashless exercise provision of our 2007 Amended and Restated Equity Incentive Plan, resulting in the net issuance of 438,255 shares of common stock and cash proceeds to us of approximately $2,308,000.
 
 
Stock-Based Compensation
 
The following table summarizes stock-based compensation expense related to stock-based payment awards granted pursuant to all of our equity compensation arrangements for the three and six months ended June 30, 2015 and 2014 (in thousands):
 
 
 
Three Months Ended
June 30
,
 
 
Six
Months Ended
June 30
,
 
 
 
2015
 
 
2014
 
 
2015
 
 
2014
 
                                 
Research and development
   $ 919     $ 446     $ 1,725     $ 1,708  
General and administrative
     2,222       634       3,966       2,341  
Stock-based compensation expense included in operating expenses
   $ 3,141     $ 1,080     $ 5,691     $ 4,049  
                                 
Impact on basic and diluted net loss per share
   $ 0.10     $ 0.04     $ 0.19     $ 0.17  
 
As of June 30, 2015, there was $28,358,000 of total unrecognized compensation cost related to non-vested, stock-based payment awards granted under all of our equity compensation plans and all non-plan option grants. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures. We expect to recognize this compensation cost over a weighted-average period of 2.2 years.
 
We estimated the fair value of each option grant on the grant date using the Black-Scholes option pricing model with the following weighted-average assumptions:
 
 
 
June 30,
 
 
 
20
15
 
 
20
14
 
Risk-free interest rate
     1.7 %     2.0 %
Dividend yield
     0.0 %     0.0 %
Volatility
     91.0 %     104.0 %
Expected life (years)
     6       6  
 
The Company estimates the fair value of each purchase right granted under the ESPP at the beginning of each new offering period using the Black-Scholes option valuation model with the following assumptions:
 
 
 
June 30,
 
 
 
20
15
 
 
20
14
 
Risk-free interest rate
     0.1 %     0.1 %
Dividend yield
     0.0 %     0.0 %
Volatility
     59.1 %     58.9 %
Expected life (months)
     6       6  
 
 
The following table summarizes the stock option activity for the six months ended June 30, 2015:
 
 
 
 
 
 
 
 
 
 
 
Weighted-
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
Weighted-
 
 
Remaining
 
 
 
 
 
 
 
Average
 
 
Contractual
 
 
 
Shares
 
 
Exercise
 
 
Term
 
 
 
(in thousands)
 
 
Price
 
 
(Years)
 
Balance at January 1, 2015
     7,918     $ 8.69       7.92  
Granted
     125     $ 19.13          
Exercised
     (713
)
   $ 8.84          
Expired and forfeited
     (345
)
   $ 11.30          
Balance at June 30, 2015
     6,985     $ 8.73       8.08