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Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2016

Stock Based Compensation Expenses Included on Operations Statement

The following table presents all stock-based compensation as included on the Company’s consolidated statements of operations (in thousands):

	For the Year Ended December 31,
	2016		2015		2014
Stock-based compensation expense:
Warrants for common stock to an officer	$	50,502	$	141,901	$	—
Warrants for common stock to an officer and a director related to Inex Bio, Inc. acquisition		—		22,747		—
Employee stock options		14,720		25,498		485
Non-employee stock options		—		3,300		76
Employee restricted stock units		8,166		17,505		228
Non-employee restricted stock units		464		270		—
	$	73,852	$	211,221	$	789
Stock-based compensation expense in operating expenses:
Research and development	$	852	$	1,221	$	222
Selling, general and administrative		73,000		210,000		567
	$	73,852	$	211,221	$	789

Summarizes Stock Option Activity Under Equity Intensive Plan

The following table summarizes stock option activity under all equity incentive plans for the years ended December 31, 2016, 2015 and 2014:

	Number of Shares			Weighted- Average Exercise Price		Aggregate Intrinsic Value (in 000)		Weighted- Average Remaining Contractual Life (in years)
Outstanding at December 31, 2013		1,727		$	0.41	$	—		1.3
Options granted		5,971,087		$	0.77
Options exercised		(833,173	)	$	0.22
Options forfeited/canceled		(1,231	)	$	0.41
Outstanding at December 31, 2014		5,138,410		$	0.85	$	5,298		9.7
Options granted		5,713,899		$	7.92
Options exercised		(1,127,105	)	$	0.86
Options forfeited/canceled		(947,311	)	$	1.87
Outstanding at December 31, 2015		8,777,893		$	5.36	$	116,273		7.2
Options exercised		(2,398,882	)	$	0.76
Options forfeited/canceled		(71,627	)	$	2.00
Outstanding at December 31, 2016		6,307,384		$	7.14	$	19,100		6.4
Vested and Exercisable at December 31, 2016		5,210,756		$	8.18	$	15,227		7.3

Summary of Options Outstanding and Vested

The following table provides a summary of options outstanding and vested as of December 31, 2016:

Exercise Prices	Number Outstanding		Weighted- Average Life (in years)		Number Exercisable		Weighted- Average Life (in years)
$0.22		134,807		7.2		134,807		7.2
$0.42		589,660		7.9		589,660		7.9
$1.76		999,682		8.0		999,682		8.0
$2.00		1,276,285		8.1		1,221,126		8.1
$2.20		1,851,500		2.2		810,031		2.2
$25.00		1,455,450		8.6		1,455,450		8.6
		6,307,384		6.4		5,210,756		7.3

Weighted Average of Fair Value of Options Under Black-Scholes Option-Pricing Model

The Company uses a Black-Scholes option-pricing model to determine the fair value of stock-based compensation under ASC Topic 718, Stock Compensation. The assumptions used for employee and non-employee stock options are presented in the table below:

	Years Ended December 31,
	2015				2014
	Employee Grants		Non-Employee Grants		Employee Grants		Non-Employee Grants
Expected term (years)	4.0 - 5.5		8.4 - 9.9		5.0 - 5.6		9.3 - 9.9
Risk-free interest rate	1.5% - 1.8%		0% - 2.4%		1.6% - 1.9%			2.20%
Expected volatility		80%		80%	81% - 91%			81%
Dividend yield		0%		0%		0%		0%
Weighted-average measurement date fair value	$	12.08	$	15.25	$	0.53	$	0.18

Restricted Stock Units (RSUs) Activity

The following table summarizes the restricted stock units (RSUs) activity under the 2015 Plan:

	Number of Restricted Stock Units Outstanding			Weighted-Average Grant Date Fair Value
Unvested balance at December 31, 2014		—		$	—
Granted		1,614,788		$	21.86
Vested		(485,150	)	$	25.00
Unvested balance at December 31, 2015		1,129,638		$	20.51
Granted		407,800		$	7.76
Vested		(537,982	)	$	23.75
Forfeited/canceled		(185,000	)	$	11.75
Unvested balance at December 31, 2016		814,456		$	13.98

Summary of Warrant Activity

The following table summarizes the Company’s warrant activity:

Outstanding at December 31, 2014	1,850,937
Warrants granted	20,791,842
Warrants exercised	(4,677,101	)
Warrants forfeited	(146,062	)
Outstanding at December 31, 2015	17,819,616
Warrants exercised	(51,302	)
Outstanding at December 31, 2016	17,768,314
Vested and exercisable at December 31, 2016	12,769,264

2015 Equity Incentive Plan

Reserved Authorized Shares Of Common Stock For Future Grants Of Equity Awards

At December 31, 2016, the Company has reserved authorized shares of common stock for future grants of equity awards as follows:

Shares approved for 2015 Equity Incentive Plan	3,500,000
Shares remaining from 2014 Equity Incentive Plan	749,857
Total shares authorized under the 2015 Plan	4,249,857
Grants	(3,070,238	)
Forfeitures added back to available pool	947,063
Shares reserved for future grants as of December 31, 2015	2,126,682
Grants	(407,800	)
Add backs approved under the Plan:
Forfeitures	185,000
Net share settlement	225,754
Shares repurchased	615,392
Shares reserved for future grants as of December 31, 2016	2,745,028

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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