Stock Plans and Stock-Based Compensation

9 Months Ended

Sep. 30, 2013

Stock Plans and Stock-Based Compensation

9. Stock Plans and Stock-Based Compensation

2012 Equity Incentive Plan

As of September 30, 2013, under the 2012 Equity Incentive Plan, the Company may grant additional shares and/or options to purchase up to 1,279,540 shares of common stock 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. Options generally vest over four years, expire 10 years from the date of grant, and become exercisable as they vest following the date of grant.

A summary of stock option activity for the nine months ended September 30, 2013 under all of the Company’s options plans is as follows:

				Weighted Average Exercise Price
	Options
Outstanding at December 31, 2012		1,030,795		$	2.68
Granted		1,010,326			5.91
Exercised		(149,147	)		1.05
Cancelled		(51,475	)		2.92
Outstanding at September 30, 2013		1,840,499		$	4.58
Weighted-average fair value of options granted during the period				$	3.19

Stock-Based Compensation

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

	Three Months				Nine Months
	Ended September 30,				Ended September 30,
(In thousands)	2013		2012		2013		2012
General and administrative	$	241	$	235	$	500	$	303
Research and development		213		254		508		313
	$	454	$	489	$	1,008	$	616

At September 30, 2013, the Company had $4.0 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.