Quarterly report pursuant to Section 13 or 15(d)

Stock Plans and Stock-Based Compensation

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Stock Plans and Stock-Based Compensation
9 Months Ended
Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock Plans and Stock-Based Compensation

9. Stock Plans and Stock-Based Compensation

Stock Plans

On September 30, 2013, the Company’s stockholders approved the 2013 Equity Incentive Plan, or 2013 Plan, under which shares of the Company’s common stock are reserved for issuance pursuant to stock awards, including, but not limited to, incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance stock awards, and performance cash awards. In addition, the share reserve automatically increased by 472,753 shares on January 1, 2014, and will continue to automatically increase on January 1st of each year, for a period of not more than ten years, in an amount equal to 5% of the total number of shares of capital stock outstanding on December 31st of the preceding calendar year, unless the Board determines otherwise prior to December 31st of such calendar year. In June 2014, the Company’s stockholders approved a proposal to increase the share reserve by an additional 500,000 shares. From plan inception through September 30, 2014, the Company had issued options for an aggregate of 933,647 shares of the Company’s common stock under the 2013 Plan.

 

Stock-Based Compensation Expense

Employee and Director Expense

Employee and director stock-based compensation expense recorded was as follows (in thousands):

 

     Three Months Ended
September 30,
     Nine Months Ended
September 30,
 
     2014      2013      2014      2013  
     (unaudited)      (unaudited)  

Research and development

   $ 73       $ 5       $ 256       $ 16   

General and administrative

     152         11         761         33   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 225       $ 16       $ 1,017       $ 49   
  

 

 

    

 

 

    

 

 

    

 

 

 

On June 3, 2014, stockholders approved a proposal to increase the Company’s stock option plan share reserve with sufficient shares to enable the Company to share settle certain incentive awards previously issued to the Company’s employees and directors. Prior to the share reserve increase the Company could only cash settle the incentive awards and therefore these awards were required to be revalued at each reporting date and presented as liabilities on the condensed balance sheet. On June 3, 2014, the incentive awards became equity classified for accounting purposes and accordingly, the Company revalued the awards and reclassified $0.1 million from accrued liabilities to additional paid in capital.