Stock Option and Incentive Plans

9 Months Ended

Sep. 30, 2015

8. Stock Option and Incentive Plans

In 2005, we adopted the 2005 Stock Option and Incentive Plan (2005 Plan) that authorizes us to grant options, restricted stock and other equity-based awards. As of September 30, 2015, 634,387 options to purchase shares of common stock were outstanding pursuant to grants in connection with the 2005 Plan. No additional shares are available for issuance under the 2005 Plan. The amount, terms of grants, and exercisability provisions are determined and set by our board of directors.

Effective August 2014, we adopted our 2014 Equity Incentive Plan (2014 Plan) that authorizes us to grant options, restricted stock, and other equity-based awards, subject to adjustment in accordance with the 2014 Plan. As of September 30, 2015, 1,122,939 options to purchase shares of common stock were outstanding pursuant to grants in connection with the 2014 Plan, and 131,371 shares of common stock were available for future issuance. The amount, terms of grants, and exercisability provisions are determined and set by our board of directors.

There were 1,757,326 stock options outstanding as of September 30, 2015 at a weighted-average exercise price of $7.49 per share. During the nine-month period ended September 30, 2015, 458,800 options were granted to employees, directors and consultants at a weighted-average exercise price of $14.18, 327,098 options were exercised at a weighted-average exercise price of $1.14, and 44,950 options were forfeited at a weighted-average exercise price of $6.13.

Total compensation cost recognized for all stock option awards in the statements of operations is as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Research and development	$	179	$	35	$	436	$	39
General and administrative		418		181		932		224
Total stock-based compensation expense	$	597	$	216	$	1,368	$	263