Stockholders' Equity

6 Months Ended

Jun. 30, 2014

Stockholders' Equity

Stockholders' Equity

9. Stockholders’ Equity

2012 Equity Incentive Plan

As of June 30, 2014, under the 2012 Equity Incentive Plan, the Company may grant shares, stock units, stock appreciation rights, performance cash awards and/or options to employees, directors, consultants, and other service providers. For options, the per share exercise price may not be less than the fair market value of a Company common share on the date of grant. Awards generally vest over four years and expire 10 years from the date of grant. Options generally become exercisable as they vest following the date of grant.

A summary of stock option activity for the six months ended June 30, 2014 under all of the Company’s options plans is as follows:

	Options		Weighted Average Exercise Price
Outstanding at December 31, 2013	1,820,784		$	4.46
Granted	876,500		5.37
Exercised	(50,304	)	1.18
Cancelled	(98,666	)	6.35
Outstanding at March 31, 2014	2,548,314		$	4.77
Granted	193,000		2.08
Exercised	—		—
Cancelled	(89,792	)	5.93
Outstanding at June 30, 2014	2,651,522		$	4.53

The weighted average fair value of options granted during the three and six months ended June 30, 2014 were $1.39 per share and $3.08 per share, respectively.

2012 Employee Stock Purchase Plan

The Employee Stock Purchase Plan, or ESPP, provides eligible employees with the opportunity to acquire an ownership interest in the Company through periodic payroll deductions, based on a six-month look-back period, at a price equal to the lesser of 85% of the fair market value of the ordinary shares at either the beginning or ending of the relevant offering period. The ESPP is structured as a qualified employee stock purchase plan under Section 423 of the Internal Revenue Code of 1986. However, the ESPP is not intended to be a qualified pension, profit sharing or stock bonus plan under Section 401(a) of the Internal Revenue Code of 1986 and is not subject to the provisions of the Employee Retirement Income Security Act of 1974. The ESPP will terminate on January 15, 2033 unless sooner terminated. There were 168,469 shares initially authorized for issuance under the plan, and the first offering period commenced June 1, 2014.

Stock-Based Compensation

The Company recorded stock-based compensation expense in the condensed consolidated statements of comprehensive loss as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2014		2013		2014		2013
General and administrative	$	247	$	174	$	473	$	259
Research and development	280		199		545		295
	$	527	$	373	$	1,018	$	554

At June 30, 2014, the Company had $4.4 million of total unrecognized compensation expense, net of estimated forfeitures, related to outstanding stock options that will be recognized over a weighted-average period of 2.8 years.