Share-Based Payments

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 March 31,
	2016		2015
Cost of products	$	20	$	34
Cost of services	68		98
Research and development	2,565		1,769
Selling, general and administrative	10,535		8,358
Total	$	13,188	$	10,259

Intrexon Stock Option Plans

In April 2008, Intrexon adopted the 2008 Equity Incentive Plan (the "2008 Plan") for employees and nonemployees pursuant to which Intrexon's Board of Directors may grant share based awards, including stock options, to officers, key employees and nonemployees. Upon the effectiveness of the 2013 Omnibus Incentive Plan (the "2013 Plan"), no new awards may be granted under the 2008 Plan. As of March 31, 2016, there were 1,154,315 stock options outstanding under the 2008 Plan.

Intrexon adopted the 2013 Plan for employees and nonemployees pursuant to which Intrexon'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 Company's initial public offering in August 2013, and as of March 31, 2016, there were 13,000,000 shares authorized for issuance under the 2013 Plan, of which 9,355,773 stock options were outstanding and 2,421,499 shares were available for grant. In April 2016, Intrexon's Board of Directors approved, subject to shareholder approval at Intrexon's annual meeting in June 2016, an increase of 3,000,000 shares of common stock to be reserved for issuance under the 2013 Plan.

Stock option activity under Intrexon's award plans was as follows:



	Number of Shares		Weighted Average Exercise Price			Weighted Average Remaining Contractual Term (Years)
Balances at December 31, 2015	11,043,528		$	32.66		8.49
Granted	848,360		32.50
Exercised	(537,307	)	(24.81		)
Forfeited	(841,002	)	(35.31		)
Expired	(3,491	)	(29.68		)
Balances at March 31, 2016	10,510,088		32.84			8.13
Exercisable at March 31, 2016	3,147,589		22.12			6.16
Vested and Expected to Vest at March 31, 2016(1)	8,906,749		31.86			7.95


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

Total unrecognized compensation costs related to unvested awards at March 31, 2016 and December 31, 2015 were $103,746 and $113,655, respectively, and are expected to be recognized over a weighted-average period of approximately three years.

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

In October 2015, the Compensation Committee and the independent members of Intrexon's Board of Directors approved a compensation arrangement whereby the Company's Chief Executive Officer ("CEO") would receive a monthly salary. Previously, the CEO did not receive compensation for his services as an employee of the Company other than through his participation in the Company's Annual Executive Incentive Plan which became effective January 1, 2015. Pursuant to the compensation agreement, the CEO receives a base salary of $200 per month payable in fully vested shares of Intrexon common stock with such shares subject to a three-year lock-up on resale. The monthly number of shares of common stock is calculated based on the closing price on the last trading day of each month and the shares are issued pursuant to the terms of a Restricted Stock Unit Agreement (the "RSU Agreement") which was executed between Intrexon and the CEO pursuant to the terms of the 2013 Plan. The RSU Agreement became effective in November 2015, has an initial term of 12 months, and is renewable annually at the discretion of Intrexon's Board of Directors. The fair value of the shares issued as compensation for services is included in selling, general and administrative expenses in the Company's consolidated statement of operations for the three months ended March 31, 2016 and totaled $471.

Other Plans

As of March 31, 2016, there were 5,607,000 options, which are exercisable into shares of AquaBounty common stock, outstanding under the AquaBounty 2006 Equity Incentive Plan ("AquaBounty Plan") at a weighted average exercise price of $0.26 per share of which 5,090,791 were exercisable. As of December 31, 2015, there were 5,382,000 options outstanding under the AquaBounty Plan at a weighted average exercise price of $0.26 per share of which 4,320,333 were exercisable.