Share Based Compensation

3 Months Ended

Mar. 31, 2016

Stockholders' Equity Note [Abstract]

Share Based Compensation

9. Share Based Compensation

2012 Equity Incentive Plan

Under the Company’s 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 and become exercisable over three to four years and expire 10 years from the date of grant.

A summary of stock option activity for the three months ended March 31, 2016 under all of the Company’s options plans is as follows:

				Weighted
				Average
				Exercise
	Options			Price
Outstanding at December 31, 2015		465,401			$	19.29
Granted		—				—
Exercised		—				—
Cancelled (forfeited)		(3,416	)			5.86
Cancelled (expired)		(63,997	)			33.51
Outstanding at March 31, 2016		397,988			$	17.12

There were no options granted or exercised during the three months ended March 31, 2016. In addition, 3,750 restricted stock units were outstanding as of March 31, 2016.

2012 Employee Stock Purchase Plan

The Employee Stock Purchase Plan (the “ESPP”) provided 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 of the offering period, or the fair market value on the purchase date. The ESPP was structured as a qualified employee stock purchase plan under Section 423 and a qualified pension, profit sharing or stock bonus plan under Section 401(a) of the Internal Revenue Code of 1986 and was not subject to the provisions of the Employee Retirement Income Security Act of 1974. There were 21,058 shares initially authorized for issuance under the plan, and the first offering period commenced on June 1, 2014 and ended on October 31, 2014. The second offering period commenced on November 1, 2014 and ended on April 30, 2015. There were 583 and 375 shares issued under the plan on October 31, 2014 and April 30, 2015, respectively. Under the terms of the ESPP, offerings subsequent to the second offering were to commence on May 1 and November 1 and end on April 30 and October 31 each year. On March 3, 2016, the ESPP was terminated.

Stock-Based Compensation

The Company recorded stock-based compensation expense in the Condensed Consolidated Statements of Operations and Comprehensive Loss as follows:

	Three Months
	Ended March 31,
(in thousands)	2016		2015
General and administrative	$	1	$	142
Research and development		1		163
	$	2	$	305

During the three months ended March 31, 2015, in addition to the amounts shown above, the Company recorded charges of $389,000 and $414,000 related to the fair value of stock options that were modified due to executive retirement and restructuring activities, and classified $420,000 and $383,000 as General and administrative expenses and Research and development expenses, respectively.  During the three months ended March 31, 2016 the Company did not record any such charges.

At March 31, 2016, the Company had $23,000 of total unrecognized stock-based compensation expense, net of estimated forfeitures, related to outstanding stock options that will be recognized over a weighted-average period of 3.3 years.