The following table summarizes the components of share-based compensation expense in the Consolidated Statements of Operations (in thousands):

 

		Year Ended June 30,
		2017			2016
Research and development		$	26		$	20
General and administrative			984			1,245
Totals		$	1,010		$	1,265

 

On August 12, 2008, the Company adopted the iBioPharma 2008 Omnibus Equity Incentive Plan (the “Plan”) for employees, officers, directors and external service providers. The original Plan provided that the Company may grant options to purchase stock and/or make awards of restricted stock up to an aggregate amount of 10 million shares. On December 18, 2013, the Plan was amended to increase the number of shares reserved for awards under the Plan from 10 million to 15 million. As of June 30, 2017, there were approximately 1.45 million shares of common stock reserved for future issuance under the Plan. Stock options granted under the Plan may be either incentive stock options (as defined by Section 422 of the Internal Revenue Code of 1986, as amended) or non-qualified stock options at the discretion of the Board of Directors. Vesting of service awards occurs ratably on the anniversary of the grant date over the service period, generally three or five years, as determined at the time of grant. Vesting of performance awards occurs when the performance criteria have been satisfied. The Company uses historical data to estimate forfeiture rates.

 

Issuances of stock options during 2016 were as follows:

 

On September 4, 2015 and March 1, 2016, the Company granted stock options to members of the Board of Directors, officers and employees to purchase 2.75 million shares of common stock. These options vest ratably over a three to five-year service period, expire ten years from the date of grant, and have a weighted-average exercise price of $1.64 per share.

 

Issuances of stock options during 2017 were as follows:

 

On March 1, 2017, the Company granted stock options to an officer to purchase 150,000 shares of common stock. These options vest ratably over a three-year service period, expire ten years from the date of grant, and have an exercise price of $0.40 per share.

 

In May 2017 through June 2017, the Company granted stock options to members of the Board of Directors, officers and employees to purchase 1,435,000 shares of common stock. These options vest ratably over a three-year service period, expire ten years from the date of grant, and have a weighted-average exercise price of $0.40 per share.

 

 Issuances of stock options for the period from July 1, 2017 to the date of the filing of this report were as follows:

 

On July 1, 2017, the Company granted stock options to an employee to purchase 50,000 shares of common stock. These options vest ratably over a three-year service period, expire ten years from the date of grant, and have an exercise price of $0.40 per share.

 

The following table summarizes all stock option activity during the years ended June 30, 2017 and 2016:

 

		Stock Options			Weighted- average Exercise Price			Weighted- average Remaining Contractual Term (in years)			Aggregate Intrinsic Value (in thousands)
Outstanding as of July 1, 2015			9,523,334		$	1.22			6.6		$	1,848
Granted			2,750,000		$	1.64
Forfeited/expired			-		$	-
Outstanding as of June 30, 2016			12,273,334		$	1.31			6.4		$	993
Granted			1,585,000		$	0.40
Forfeited/expired			(310,000)		$	1.11
Outstanding as of June 30, 2017			13,548,334		$	1.21			5.9		$	138
As of June 30, 2017 vested and expected to vest			13,486,342		$	1.21			5.8		$	138
Exercisable as of June 30, 2017			9,440,027		$	1.30			4.7		$	138

 

The total fair value of stock options that vested during 2017 and 2016 was approximately $1,239,000 and $800,000, respectively. As of June 30, 2017, there was approximately $1.1 million of total unrecognized compensation cost related to non-vested stock options that the Company expects to recognize over a weighted-average period of 1.8 years.

 

The weighted-average grant date fair value of stock options granted during 2017 and 2016 was $0.36 and $0.62 per share, respectively.  The Company estimated the fair value of options granted using the Black-Scholes option pricing model with the following assumptions:

 

		2017				2016
Risk-free interest rate			2.05% - 2.46%				1.83% - 2.13%
Dividend yield			0%				0%
Volatility			103.10% - 104.38%				109.49% - 112.17%
Expected term (in years)			9				9