Quarterly report pursuant to sections 13 or 15(d)

STOCK OPTION PLAN

v2.3.0.11
STOCK OPTION PLAN
6 Months Ended
Jun. 30, 2012
Notes to Financial Statements  
STOCK OPTION PLAN

 

The Company’s Board of Directors has approved the 2008 Stock Plan (the “Plan”). Under the Plan, the Board of Directors may grant up to 10,742,127 shares of incentive stock options, nonqualified stock options, or stock awards to eligible persons, including employees, nonemployees, members of the Board of Directors, consultants, and other independent advisors who provide services to the Company. In general, options are granted with an exercise price equal to the fair value of the underlying common stock on the date of the grant. Options generally have a contractual life of 10 years and vest over periods ranging from being fully vested as of the grant dates to four years.

 

    Outstanding Options
      Weighted- Weighted-
  Shares   Average Average
  Available for Number of Exercise Remaining
  Grant Shares Price Contractual Term
Balance - January 14, 2008        
(date of inception)                        
                         
Shares added to the plan   6,085,136                    
                         
Balance - December 31, 2008   6,085,136                    
                         
Balance - December 31, 2009   6,085,136                    
                         
Shares added to the plan   4,656,991           0.01        
                         
Options granted (weighted average fair values of $0.0237)   (3,206,494 )   3,206,494     0.01     9.2  
                         
Balance - December 31, 2010   7,535,633     3,206,494     0.01     9.2  
                         
Shares added to the plan                        
                         
Options granted (weighted average fair value of $0.0237)                        
Employee   (4,610,422 )   4,610,422     0.01        
Non-Employee   (3,601,407 )   3,601,407     0.01        
                         
Cancelled Shares   2,212,071     (2,212,071 )   0.01        
                         
Options exercised         (7,532,454 )   0.01        
                         
Balance - December 31, 2011   1,535,875     1,673,798              
                         
Options vested-                        
June 30,2012   6,698,179                    
                         
Options vested and expected to vest-                        
June 30, 2012   7,951,362                    

 

Stock-based compensation expense for the three and six month periods ended June 30, 2012 and June 30, 2011, and the period from January 14, 2008 (date of inception) to June 30, 2011, is classified in the statements of operations as follows:

 

                    Period From
    Three   Three   Sixe   Six   January 14, 2008
    Months Ended   Months Ended   Months Ended   Months Ended   Date of Inception
    June 30,   June 30,   June 30,   June 30,   to June 30,
    2012   2011   2012   2011   2012
Research and development   $ 1,794   $ 429,144     $ 6,926     $ 459,279     $ 549,417  
General and administrative     4,484     68,628       12,134       93,556       151,071  
                                       
Total   $ 6,278   $ 497,772     $ 19,060     $ 552,835     $ 700,488  

 

At June 30, 2012, there was a total of $23,111 of unrecognized compensation cost, net of estimated forfeitures, related to non-vested stock option awards, which is expected to be recognized over a weighted-average period of approximately 2.0 years.

 

The fair value of the Company’s stock-based awards during the year ended December 31, 2011, and the period from January 14, 2008 (date of inception) to June 30, 2012, was estimated using the following weighted-average assumptions:

 

            Period From
            January 14, 2008
    Period Ended   Year Ended   (Date of Inception)
    June 30,   June 30,   to June 30,
    2012   2011   2012
                         
Weighted-average volatility     71.0 %     71.0 %     71.0 %
Expected term (in years)     5       5       5  
Expected dividends     None       None       None  
Risk-free interest rate     0.72 %     1.76 %     1.76 %