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STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION PLANS
 6 Months Ended
Jun. 30, 2020
Share-based Payment Arrangement [Abstract]  
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION PLANS STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION PLANS
Stockholders' Equity

On October 5, 2018, the Company entered into an Open Market Sale Agreement (the “Sale Agreement”) with Jefferies LLC ("Jefferies"), as sales agent, pursuant to which the Company may offer and sell, from time to time, through Jefferies, shares of the Company’s common stock having an aggregate offering price of up to $60.0 million. The shares will be offered and sold pursuant to the Company’s prospective supplement to its shelf registration statement on Form S-3 (the “Prospective Supplement”). During the year ended December 31, 2019, the Company received $9.0 million in net proceeds from the sale of 259,115 shares of its common stock in the open market. On August 16, 2019, in connection with the Offering, the Company delivered written notice to Jefferies that the Company was suspending and terminating the Prospectus Supplement related to the shares of its common stock issuable pursuant to the Sale Agreement. The Company will not make any sales of its securities pursuant to the Sales Agreement, unless and until a new prospectus supplement is filed. Other than the termination of the Prospectus Supplement, the Sale Agreement remains in full force and effect.

Share-Based Compensation Plans

The Company has five share-based compensation plans, including the 2019 Equity Incentive Plan (the "2019 Plan"), which was adopted in June 2019. Each plan authorizes the granting of shares of common stock and options to purchase common stock to employees and directors of the Company, as well as non-employee consultants, and allows the holder of the option to purchase common stock at a stated exercise price. The only plan under which the Company may currently grant equity awards is the 2019 Equity Incentive Plan although there remain outstanding awards under the other four plans. Options vest according to the terms of the grant, which may be immediately or based on the passage of time, generally over four years, and have a term of up to 10 years. Unexercised stock options terminate on the expiration date of the grant. The Company recognizes the share-based compensation expense over the requisite service period of the individual grantees, which generally equals the vesting period.

2019 Equity Incentive Plan

The 2019 Plan, is designed to secure and retain the services of the Company’s employees and directors. The 2019 Plan is successor to and continuation of the 2014 Equity Incentive Plan, as amended, the ("2014 Plan"), and no additional awards may be issued from the 2014 Plan. Subject to adjustment for certain changes in the Company’s capitalization, the aggregate number of shares of common stock that may be issued under the 2019 Plan (the "Share Reserve") will not exceed the sum of (i) 250,000 new shares, plus (ii) an additional 600,000 shares that were approved at the Company’s Special Meeting of Stockholders in January 2020, plus (iii) an additional 500,000 shares that were approved at the Company's Annual Meeting of Stockholders in June 2020, and plus (iv) the Prior Plans’ Returning Shares, as defined in the 2019 Plan documents, in an amount not to exceed 600,540 shares, including any stock award granted under the 2014 Plan, 2011 Stock Option Plan, as amended, or 2006 Stock Option Plan, as amended, that were outstanding as of the date the 2019 Plan was approved by the Company's stockholders, as such shares become available from time to time.

The following shares of common stock (the "2019 Plan Returning Shares") will also become available again for issuance under the 2019 Plan: (i) any shares subject to a stock award granted under the 2019 Plan that are not issued because such stock award expires or otherwise terminates without all of the shares covered by such stock award having been issued; (ii) any shares subject to a stock award granted under the 2019 Plan that are not issued because such stock award is settled in cash; and (iii) any shares issued pursuant to a stock award granted under the 2019 Plan that are forfeited back to or repurchased by the Company because of a failure to vest.

The 2019 Plan provides for the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance stock awards, and other stock awards.
The following table summarizes the stock option activity for all stock plans during the six months ended June 30, 2020:
Options and Inducement Awards
Outstanding at December 31, 2019
567,842  
Granted
634,085  
Exercised
—  
Forfeited
(78,989) 
Outstanding at June 30, 2020
1,122,938  
Exercisable at June 30, 2020
335,278  

The following table summarizes the stock award activity for all stock plans during the six months ended June 30, 2020:

Restricted Stock Awards and Units
Outstanding at December 31, 2019
6,359  
Granted
207,547  
Vested
(2,309) 
Forfeited
(23,892) 
Outstanding at June 30, 2020
187,705  

2014 Employee Stock Purchase Plan

The 2014 Employee Stock Purchase Plan (the "ESPP") provides for eligible Company employees, as defined by the ESPP, to be given an opportunity to purchase the Company's common stock at a discount, through payroll deductions, with stock purchases being made upon defined purchase dates. The ESPP authorizes the issuance of up to 55,000 shares of the Company’s common stock to participating employees and allows eligible employees to purchase shares of common stock at a 15% discount from the lesser of the grant date or purchase date fair market value. During the six-month periods ended June 30, 2020 and 2019 there were 9,526 and 4,000 shares purchased by the ESPP, respectively.

A summary of activity within the ESPP follows:
Six Months Ended June 30,
(in thousands)20202019
Deductions from employees$62  $48  
Share-based compensation expense recognized46  57  
Remaining share-based compensation expense144  135  

As of June 30, 2020, there were 23,937 shares available for issuance under the ESPP.


Share-Based Compensation Expense

The fair value of option grants is determined using the Black-Scholes option-pricing model and has been estimated with the following weighted-average assumptions:
Six Months Ended June 30,
20202019
Risk-free interest rate
1.24 %2.25 %
Volatility
81.53 %72.10 %
Expected life (years)
6.046.08
Expected dividend yield
—  —  
Share-based compensation expense by classification for the three and six months ended June 30, 2020 and 2019 are as follows:

Three Months Ended June 30,
Six Months Ended June 30,
(in thousands)2020201920202019
Research and development$661  $959  $1,209  $2,024  
General and administrative903  1,037  1,678  2,108  
     Total$1,564  $1,996  $2,887  $4,132  
At June 30, 2020, total compensation cost not yet recognized was $9.4 million and the weighted-average period over which this amount is expected to be recognized is 2.3 years.