Stock Option Plans

9 Months Ended

Sep. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Option Plans

Stock Option Plans

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 costs included in the consolidated statements of operations are presented below:

	Three Months Ended   September 30,				Nine Months Ended   September 30,
	2014		2013		2014		2013
Cost of products	$	5	$	—	$	5	$	—
Cost of services	50		—		50		—
Research and development	1,514		52		3,226		351
Selling, general and administrative	2,681		593		11,591		1,490
Total	$	4,250	$	645	$	14,872	$	1,841

Intrexon Stock Option Plans

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 September 30, 2014, there are 1,779,850 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 September 30, 2014, there were 6,414,800 stock options outstanding under the 2013 Plan, and there were 3,500,970 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	7,420,800		27.58
Exercised	(286,324	)	(4.55		)
Forfeited	(1,779,862	)	(24.06		)
Expired	(612	)	(7.12		)
Balances at September 30, 2014	8,194,650		22.46			8.74
Exercisable at September 30, 2014	1,259,789		7.99			5.60
Vested and Expected to Vest at September 30, 2014(1)	6,457,981		21.53			8.55

(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 September 30, 2014 and December 31, 2013 were $64,413 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.

Other Plans

As of September 30, 2014, there were 397,000 options outstanding under the Exemplar membership interest unit option plan at a weighted average exercise price of $2.10 per unit of which 215,000 were exercisable.

As of September 30, 2014, there were 7,371,000 options outstanding under the AquaBounty 2006 Equity Incentive Plan at a weighted average exercise price of $0.31 per share of which 6,195,520 were exercisable.