Note 11 - Stock-based Compensation Plan

6 Months Ended

Jun. 30, 2014

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

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

11. Stock-based compensation plan

Equity awards

The Company’s Amended and Restated 2011 Stock Option plan, or the Plan, provides for the granting of options for the purchase of common shares of the Company at the fair value of the Company’s common shares on the date of the option grant. Options are granted to employees, directors and non-employees. The board of directors or a committee appointed by the board of directors administers the Plan and has discretion as to the number, vesting period and expiry date of each option award. Historically the Company granted options to residents of the United States with an exercise price denominated in Canadian dollars, the functional currency of Sophiris Bio Inc. Inc. prior to the Company’s U.S. initial public offering. Following the Company’s U.S. initial public offering the Company will grant options with an exercise price denominated in U.S. dollars

The Company recognized stock-based compensation expense as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
Research and development	$	153	$	60	$	346	$	124
General and administrative		391		213		807		401
Total	$	544	$	273	$	1,153	$	525

As of June 30, 2014 there was $1.5 million of total unrecognized compensation costs related to non-vested stock awards. As of June 30, 2014 the Company expects to recognize these costs over weighted average periods of approximately 1.2 years.

The fair values of options granted during the six months ended June 30, 2014 and 2013 were estimated at the date of grant using the following weighted-average assumptions:

	Six Months Ended June 30,
	2014			2013
Expected life of the option term (years)		3.7			4.2
Risk-free interest rate		1.2	%		1.4	%
Dividend rate		0	%		0	%
Volatility		76.2	%		69.1	%
Forfeiture rate		5.3	%		8.8	%

The following table summarizes stock option activity, including options issued to employees, directors and non-employees (in thousands, except per share):

	Options outstanding			Weighted average exercise price		Currency
Outstanding at January 1, 2014		1,362		$	7.10	US
Options granted		87			2.57	US
Options forfeited		(9	)		4.17	CND
Options forfeited		(54	)		3.79	US
Outstanding at June 30, 2014		1,386		$	3.51	US

The total amounts of options outstanding at June 30, 2014 include options with exercise prices denominated in Canadian dollars and U.S. dollars and the Canadian dollar amounts have been converted to U.S. dollars at the exchange rate as of June 30, 2014 for purposes of the weighted average exercise price calculation.