Employee Share-Based Compensation

9 Months Ended

Sep. 30, 2017

Share-based Compensation

Employee Share-Based Compensation

Stock Option Plans

On June 20, 2017, the stockholders of the Company approved the ChromaDex Corporation 2017 Equity Incentive Plan (the "2017 Plan"). The 2017 Plan is intended to be the successor to the ChromaDex Corporation Second Amended and Restated 2007 Equity Incentive Plan (the "2007 Plan"). Under the 2017 Plan, the Company is authorized to issue stock options that total no more than the sum of (i) 3,000,000 new shares, (ii) approximately 384,000 unallocated shares remaining available for the grant of new awards under the 2007 Plan, and (iii) any returning shares from the 2007 Plan or the 2017 Plan, such as forfeited, cancelled, or expired shares.

Service Period Based Stock Options

The following table summarizes activity of service period based stock options granted to employees at September 30, 2017 and changes during the nine months then ended:

				Weighted Average
						Remaining				Aggregate
	Number of			Exercise		Contractual		Fair		Intrinsic
	Shares			Price		Term		Value		Value
Outstanding at Dec. 31, 2016		4,281,151		$	3.52		6.36
Options Granted		773,334			2.93		10.00	$	1.88
Options Exercised		(114,813	)		3.40					$	104,000
Options Expired		(3,334	)		4.50
Options Forfeited		(41,358	)		3.54
Outstanding at Sep. 30, 2017		4,894,980		$	3.43		6.19			$	4,786,803
Exercisable at Sep. 30, 2017		3,496,750		$	3.45		5.06			$	3,433,000

The aggregate intrinsic values in the table above are based on the Company’s stock price of $4.30, which is the closing price of the Company’s stock on the last day of business for the period ended September 30, 2017.

The fair value of the Company’s stock options was estimated at the date of grant using the Black-Scholes option pricing model. The table below outlines the weighted average assumptions for options granted to employees during the nine months ended September 30, 2017.

Nine Months Ended Sep. 30, 2017
Expected term	5.8 years
Expected volatility	73	%
Expected dividends	0.00	%
Risk-free rate	2.11	%

As of September 30, 2017, there was approximately $2.7 million of total unrecognized compensation expected to be recognized over a weighted average period of 2.3 years.

Employee Share-Based Compensation

The Company recognized compensation expense of approximately $0.4 million and $1.1 million in general and administrative expenses in the statement of operations for the three and nine months ended September 30, 2017, respectively, and approximately $0.3 million and $0.9 million for the three and nine months ended October 1, 2016, respectively.