13. Stock Option Plans

Intrexon Stock Option Plan

The Company records the fair value of stock options issued to employees and non-employees as of the grant date as stock-based compensation expense. Stock-based compensation expense for employees and non-employees is recognized over the requisite service period, which is typically the vesting period. Stock-based compensation cost that has been included in research and development expenses and general and administrative expenses amounted to $1,343 and $5,429, respectively, for the three months ended June 30, 2014, and $147 and $641, respectively, for the three months ended June 30, 2013. Stock-based compensation cost that has been included in research and development expenses and general and administrative expenses amounted to $1,670 and $8,799, respectively, for the six months ended June 30, 2014, and $299 and $896, respectively, for the six months ended June 30, 2013.

On April 18, 2008, the Company adopted the 2008 Equity Incentive Plan (the “2008 Plan”) for employees and nonemployees pursuant to which the Company’s board of directors may grant share based awards to officers, key employees and nonemployees. During 2011, the 2008 Plan was amended to increase the number of authorized awards under the 2008 plan from 2,857,142 to 5,714,285. Upon the effectiveness of the 2013 Omnibus Incentive Plan (the “2013 Plan”), no new awards may be granted under the 2008 Plan. As of June 30, 2014, there are 2,200,779 stock options outstanding under the 2008 Plan.

On July 26, 2013, the Company adopted the 2013 Plan for employees and nonemployees pursuant to which the Company’s board of directors may grant share based awards, including stock options and shares of common stock, to employees, officers, consultants, advisors and nonemployee directors. The 2013 Plan became effective upon the closing of the IPO. On June 9, 2014, the Company’s shareholders voted to amend the 2013 Plan to increase the numbers of shares authorized for issuance under the 2013 Plan from 7,000,000 to 10,000,000. As of June 30, 2014, there were 6,421,800 stock options outstanding under the 2013 Plan, and there were 3,559,727 remaining shares available for the Company to grant under the 2013 Plan.

Stock option activity under the Company’s award plans during the period indicated is as follows:


	Number of shares			Weighted average exercise price			Weighted average remaining contractual term
Balances at December 31, 2013		2,840,648		$	8.27			7.75
Granted		6,273,300			28.57
Exercised		(235,438	)		(4.30	)
Forfeited		(255,646	)		(19.51	)
Expired		(285	)		(7.12	)

Balances at June 30, 2014		8,622,579			22.82			9.00
Exercisable at June 30, 2014		1,242,345			7.86			6.39

Vested and Expected to Vest at June 30, 2014(1)		6,657,224			21.72			8.84

(1)	The number of stock options expected to vest takes into account an estimate of expected forfeitures.

Total unrecognized compensation costs related to nonvested awards at June 30, 2014 and December 31, 2013 were $74,570 and $9,639, respectively, and are expected to be recognized over a weighted-average period of approximately three years.

The Company currently uses authorized and unissued shares to satisfy share award exercises.

AquaBounty Stock Option Plan

The AquaBounty 2006 Equity Incentive Plan (the “AquaBounty Plan”) provides for the issuance of incentive stock options to employees of AquaBounty and non-qualified stock options and awards of restricted and direct stock purchases to its directors, officers, employees and consultants of AquaBounty. Unless otherwise indicated, options issued to employees, directors and non-employees are vested over one to three years and are exercisable for a term of ten years from the date of issuance. As of June 30, 2014, there were 7,359,000 options outstanding under the AquaBounty Plan at a weighted average exercise price of $0.31 per share of which 6,255,520 were exercisable. Stock-based compensation cost that has been included in research and development expenses and general and administrative expenses amounted to $21 and $55, respectively, for the three months ended June 30, 2014. Stock-based compensation cost that has been included in research and development expenses and general and administrative expenses amounted to $42 and $111, respectively, for the six months ended June 30, 2014. Stock- based compensation cost that has been included in general and administrative expenses amounted to $21 and $1 for the three and six months ended June 30, 2013, respectively.