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Note 7 - Stockholders' Equity
 9 Months Ended
Sep. 30, 2016
Notes to Financial Statements  
Stockholders' Equity Note Disclosure [Text Block]
7. Stockholders’ Equity
 
2015 Common Stock Offering
 
In June 2015, we sold 5.5 million shares of our common stock at a public offering price of $24.75 per share. We received total net proceeds of $128.2 million (net of $8.4 million in issuance costs) from the sale of the common stock.
 
 
 
 
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 4,000,000 warrants to purchase common stock at an exercise price of $3.60 per share were issued as part of this private placement. During the nine months ended September 30, 2016, warrant holders exercised 2,965,477 warrants under the cashless exercise provision in each such holder’s warrant, which resulted in the net issuance of 2,395,700 shares of common stock and no net cash proceeds to us. During the nine months ended September 30, 2015, warrant holders exercised 343,813 warrants under the cashless exercise provision in each such holder’s warrant, which resulted in the net issuance of 285,713 shares of common stock and no net cash proceeds to us. As of September 30, 2016, all warrants from the June 2011 Private Placement have been exercised.
 
Stock Option
Activity
 
The following table summarizes the stock option activity for the nine months ended September 30, 2016:
 
 
 
Shares
(in thousands)
 
 
Weighted-
Average
Exercise
Price
 
 
Weighted-
Average
Remaining
Contractual
Term
(Years)
 
Balance at January 1, 2016
     8,435     $ 13.64       7.94  
Granted
     1,279     $ 20.42          
Exercised
     (653
)
   $ 8.76          
Expired and forfeited
     (544
)
   $ 23.33          
Balance at September 30, 2016
     8,517     $ 14.42       6.86  
 
For the nine months ended September 30, 2016, 652,749 shares of common stock were issued pursuant to the exercise of stock options, resulting in proceeds to us of $5.7 million. For the nine months ended September 30, 2015, 882,579 shares of common stock were issued pursuant to the exercise of stock options, resulting in proceeds to us of $7.9 million.
 
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 nine months ended September 30, 2016 and 2015 (in thousands):
 
 
 
Three Months Ended
September 30
,
 
 
Nine Months Ended
September 30,
 
 
 
2016
 
 
2015
 
 
2016
 
 
2015
 
                                 
Research and development
   $ 3,946     $ 927     $ 8,347     $ 2,652  
General and administrative
     1,763       1,068       5,229       3,540  
Sales and marketing
     1,802       826       5,121       2,320  
Stock-based compensation expense included in operating expenses
   $ 7,511     $ 2,821     $ 18,697     $ 8,512  
Impact on basic and diluted net loss per share
   $ 0.19     $ 0.08     $ 0.50     $ 0.27  
 
 
 
As of September 30, 2016, there was $55.4 million 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 2.4 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:
 
 
 
September 30,
 
 
 
20
16
 
 
20
15
 
Risk-free interest rate
     1.5 %     1.7 %
Dividend yield
     0.0 %     0.0 %
Volatility
     90.6 %     90.7 %
Expected life (years)
     6       6  
 
We estimate the fair value of each purchase right granted under our 1997 Employee Stock Purchase Plan at the beginning of each new offering period using the Black-Scholes option pricing model. There were no new offering periods for the three months ended September 30, 2016 and 2015.