Quarterly report pursuant to Section 13 or 15(d)

Share-Based Compensation

v3.7.0.1
Share-Based Compensation
 9 Months Ended
Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
11.
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
 
 
 
March 31,
 
 
 
2017
 
2016
 
Research and development
 
$
5
 
$
6
 
General and administrative
 
 
202
 
 
291
 
Totals
 
$
207
 
$
297
 
 
 
 
Nine Months Ended
 
 
 
March 31,
 
 
 
2017
 
2016
 
Research and development
 
$
16
 
$
15
 
General and administrative
 
 
697
 
 
925
 
Totals
 
$
713
 
$
940
 
 
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 Plan, as amended on December 18, 2013, provided that the Company may grant options to purchase stock and/or make awards of restricted stock up to an aggregate amount of 15 million shares. As of March 31, 2017, there were approximately 2.7 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.
 
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 a weighted-average exercise price of $0.40 per share.
 
The following table summarizes all stock option activity during the nine months ended March 31, 2017:
 
 
 
 
 
 
 
Weighted-
 
 
 
 
 
 
 
Weighted-
 
average
 
 
 
 
 
 
 
average
 
Remaining
 
Aggregate
 
 
 
Stock
 
Exercise
 
Contractual
 
Intrinsic Value
 
 
 
Options
 
Price
 
Term (in years)
 
(in thousands)
 
Outstanding as of July 1, 2016
 
 
12,273,334
 
$
1.31
 
 
6.4
 
$
993
 
Granted
 
 
150,000
 
 
0.40
 
 
 
 
 
 
 
Forfeited
 
 
(116,665)
 
 
1.54
 
 
 
 
 
 
 
Outstanding as of March 31, 2017
 
 
12,306,669
 
$
1.30
 
 
5.6
 
$
196
 
Vested and, as of March 31, 2017, expected to vest
 
 
12,276,498
 
$
1.30
 
 
5.6
 
$
196
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercisable as of March 31, 2017
 
 
9,478,362
 
$
1.30
 
 
4.8
 
$
191
 
 
The weighted-average grant date fair value of stock options granted during the nine months ended March 31, 2017 was $0.35 per share. As of March 31, 2017, there was approximately $906,000 of total unrecognized compensation cost related to non-vested stock options that the Company expects to recognize over a weighted-average period of 1.4 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
 
2.37
%
Dividend yield
 
0
%
Volatility
 
104.38
%
Expected term (in years)
 
9