Quarterly report pursuant to Section 13 or 15(d)

Share-Based Compensation

v2.4.0.8
Share-Based Compensation
 3 Months Ended
Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
9.         Share-Based Compensation
 
The following table summarizes the components of share-based compensation expense in the condensed consolidated statements of operations (in thousands):
 
 
 
Three Months Ended
 
 
 
September 30,
 
 
 
2014
 
2013
 
Research and development
 
$
20
 
$
18
 
General and administrative
 
 
233
 
 
217
 
Total
 
$
253
 
$
235
 
 
Stock Options
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 September 30, 2014, there were approximately 4.9 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.
 
During the three months ended September 30, 2014, the Company granted stock options to members of the Board of Directors and officers to purchase approximately 1.64 million shares of common stock. These options vest ratably on the anniversary of the date of grant over a three year service period, expire ten years from the date of grant, and have a weighted-average exercise price of $0.86 per share.
 
The following table summarizes all stock option activity during the three months ended September 30, 2014:
 
 
 
 
 
 
Weighted-
 
 
 
 
 
 
Weighted-
 
average
 
 
 
 
 
 
 
 
average
 
Remaining
 
Aggregate
 
 
 
Stock
 
Exercise
 
Contractual
 
Intrinsic Value
 
 
 
Options
 
Price
 
Term (in years)
 
(in thousands)
 
Outstanding as of June 30, 2014
 
 
8,483,334
 
$
1.25
 
 
7.0
 
$
179
 
Granted
 
 
1,640,000
 
$
0.86
 
 
 
 
 
 
 
Outstanding as of September 30, 2014
 
 
10,123,334
 
$
1.18
 
 
7.3
 
$
648
 
Vested and, as of September 30, 2014, expected to vest
 
 
10,023,545
 
$
1.19
 
 
7.3
 
$
634
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercisable as of September 30, 2014
 
 
5,933,349
 
$
1.46
 
 
6.0
 
$
341
 
 
The weighted-average grant date fair value of stock options granted during the three months ended September 30, 2014 was $0.41 per share. As of September 30, 2014, there was approximately $1.9 million of total unrecognized compensation cost related to non-vested stock options that the Company expects to recognize over a weighted-average period of 2.4 years.
 
The Company estimated the fair value of options granted using the Black-Scholes option pricing model with the following assumptions:
 
Risk-free interest rate
 
2.3
%
Dividend yield
 
0
%
Volatility
 
96.7
%
Expected term (in years)
 
9