Quarterly report pursuant to Section 13 or 15(d)

STOCKHOLDERS' EQUITY

v2.3.0.15
STOCKHOLDERS' EQUITY
 3 Months Ended
Sep. 30, 2011
Stockholders' Equity Note Disclosure [Text Block]

NOTE C – STOCKHOLDERS’ EQUITY


Share-Based Compensation - Stock Options and Warrants


The Company accounts for options granted to employees by measuring the cost of services received in exchange for the award of equity instruments based upon the fair value of the award on the date of grant. The fair value of that award is then ratably recognized as expense over the period during which the recipient is required to provide services in exchange for that award. Options and warrants granted to consultants and other non-employees are recorded at fair value as of the grant date and subsequently adjusted to fair value at the end of each reporting period until such options and warrants vest, and the fair value of such instruments, as adjusted, is expensed over the related vesting period. Adjustments to fair value at each reporting date may result in income or expense, depending upon the estimate of fair value and the amount of expense recorded prior to the adjustment.


On August 12, 2008, the Company adopted the iBioPharma, Inc. 2008 Omnibus Equity Incentive Plan (the “Plan”) for employees, officers, directors, or external service providers. Under the provisions of the Plan, the Company may grant options to purchase stock and/or make awards of restricted stock up to an aggregate amount of 10,000,000 shares. There are 5,650,000 options available for future issuance under the Plan. Options granted under the Plan may be either “incentive stock options” within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended, or non-statutory stock options at the discretion of the Board of Directors and as reflected in the terms of the written option agreement. Options granted under the Plan vest ratably at the end of each twelve month period within either a three or five year period from the date of grant.


Share-based compensation expense was recorded as follows:


 

 

 

 

 

 

 

 

 

 

Three Months Ended
September 30,

 

 

 

 

 

 

2011

 

2010

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

$

(15,270

)

$

88,068

 

General and administrative

 

 

353,562

 

 

320,699

 

 

 

 

 

Totals

 

$

338,292

 

$

408,767

 

 

 

 

 


A summary of the changes in options outstanding during the three months ended September 30, 2011 and the year ended June 30, 2011 is as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of
Shares

 

Weighted
Average
Exercise
Price
Per Share

 

Weighted
Average
Remaining
Contractual
Term
(Years)

 

Aggregate
Intrinsic
Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at June 30, 2010

 

 

2,210,000

 

$

0.58

 

 

9.1

 

$

1,770,000

 

Granted

 

 

2,140,000

 

$

2.44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at June 30, 2011

 

 

4,350,000

 

$

1.49

 

 

8.7

 

$

6,112,000

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at September 30, 2011 and
expected to vest at September 30, 2011

 

 

4,350,000

 

$

1.49

 

 

8.5

 

$

2,291,000

 

 

 

 

 

 

 

 

 

 

 

 

 

Options exercisable at September 30, 2011

 

 

2,532,000

 

$

1.28

 

 

8.3

 

$

1,669,000

 

 

 

 

 

 

 

 

 

 

 

 

 


There were no options granted during the three months ended September 30, 2011. The weighted average fair value of options granted during the three months ended September 30, 2010 was $1.31 per share on the date of grant using the Black-Scholes option-pricing model. Options granted and options required to be revalued each reporting period were calculated with the following assumptions:


 

 

 

 

 

 

 

Three Months Ended September 30,

 

 

 

 

 

2011

 

2010

 

 

 

Risk free interest rate

 

2.0% to 3.0%

 

1.3% to 1.9%

Dividend yield

 

None

 

None

Volatility

 

94.8% to 95.3%

 

98.0%

Expected term (in years)

 

8.6 to 8.8

 

1.3 to 6.5


On October 21, 2011, the Board of Directors authorized the grant of options to purchase 1,000,000 shares of common stock at $1.96 per share to certain officers, Board of Directors and an employee. The options vest between three to five years and expire in ten years.


A summary of the changes in warrants outstanding during the three months ended September 30, 2011 and year ended June 30, 2011 is as follows:


 

 

 

 

 

 

 

 

 

 

Number of
Shares

 

Weighted
Average
Exercise
Price
Per Share

 

 

 

 

 

 

 

 

 

 

 

Outstanding at June 30, 2010

 

 

3,085,811

 

$

2.47

 

Granted

 

 

5,257,796

 

$

1.99

 

Exercised

 

 

(95,000

)

$

1.54

 

Cancelled

 

 

(300,000

)

$

1.38

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at June 30, 2011 and September 30, 2011

 

 

7,948,607

 

$

2.21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable at September 30, 2011

 

 

7,748,607

 

$

2.24