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Share-Based Payments
 3 Months Ended
Mar. 31, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Share-Based Payments

4.    SHARE-BASED PAYMENTS

On May 15, 2018, the Company’s Board of Directors authorized and approved the adoption of the 2018 Omnibus Incentive Plan (“2018 Plan”), under which an aggregate of 5,356,114 shares may be issued. This share reserve is the sum of 3,000,000 new shares, plus the remaining 2,356,114 shares that remained available for issuance under the Company’s 2016 Omnibus Incentive Plan, the predecessor incentive plan (the “2016 Plan”) at the time of the adoption of the 2018 Plan.  Pursuant to the terms of the 2018 Plan, the Company is authorized to grant stock options, as well as awards of stock appreciation rights, restricted stock, unrestricted shares, restricted stock units (“RSU”), stock equivalent units and performance-based cash awards.  These awards may be granted to directors, officers, employees and eligible consultants. Vesting and the term of an option is determined at the discretion of the Company’s Board of Directors. Subsequent to the adoption of the 2018 Plan, the Company ceased granting awards under the 2016 Plan, the predecessor incentive plan. However, outstanding stock options granted prior to the effective date of the 2018 Plan are still governed by the 2016 Plan or the Company’s 2014 Stock Incentive Plan, which preceded the 2016 Plan.

As of March 31, 2019, there were an aggregate of 4,189,661 shares of common stock remaining available for grant under the Company’s 2018 Plan.

For the three months ended March 31, 2019, the Company issued 640,158 stock options to employees and directors. The Company issued no stock options to consultants or non-employees during the three months ended March 31, 2019.

The following table summarizes the Company’s stock option activity during the three months ended March 31, 2019:

 

 

 

 

 

 

 

Weighted

 

 

Aggregate

 

 

 

Number of

 

 

Average

 

 

Intrinsic Value

 

 

 

Stock Options

 

 

Exercise Price

 

 

(in thousands)

 

Outstanding as of December 31, 2018

 

 

3,308,049

 

 

$

7.14

 

 

$

8,308

 

Granted

 

 

640,158

 

 

 

6.93

 

 

 

—

 

Forfeited/Cancelled

 

 

(54,108

)

 

 

10.16

 

 

 

—

 

Outstanding as of March 31, 2019

 

 

3,894,099

 

 

$

7.06

 

 

$

3,890

 

Exercisable as of March 31, 2019

 

 

1,960,235

 

 

$

2.82

 

 

$

3,890

 

 

The following table summarizes stock options outstanding and exercisable by employees and directors as of March 31, 2019: 

 

 

 

 

 

 

Options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Remaining

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of

 

Number of

 

 

 

 

Contractual Life

 

 

Exercise

 

 

Fair Value

 

 

Grant Date

 

 

Options

 

Options Outstanding

 

 

Expiration Date

 

(In Years)

 

 

Price

 

 

Post Modification (1)

 

 

Fair Value

 

 

Exercisable

 

 

360,000

 

 

June 18, 2019

 

 

0.22

 

 

$

2.77

 

 

$

6.62

 

 

$

—

 

 

 

360,000

 

 

80,000

 

 

June 18, 2019

 

 

0.22

 

 

$

2.77

 

 

$

6.62

 

 

$

—

 

 

 

80,000

 

 

20,000

 

 

December 8, 2019

 

 

0.69

 

 

$

12.72

 

 

$

2.18

 

 

$

—

 

 

 

20,000

 

 

80,000

 

 

December 8, 2019

 

 

0.69

 

 

$

12.72

 

 

$

2.18

 

 

$

—

 

 

 

80,000

 

 

20,000

 

 

March 16, 2020

 

 

0.96

 

 

$

12.52

 

 

$

2.43

 

 

$

—

 

 

 

20,000

 

 

150,000

 

 

October 21, 2020

 

 

1.56

 

 

$

3.20

 

 

$

6.57

 

 

$

—

 

 

 

150,000

 

 

20,000

 

 

December 31, 2020

 

 

1.75

 

 

$

4.48

 

 

$

5.86

 

 

$

—

 

 

 

20,000

 

 

595,000

 

 

July 13, 2020

 

 

1.29

 

 

$

5.35

 

 

$

5.18

 

 

$

—

 

 

 

595,000

 

 

20,000

 

 

August 8, 2020

 

 

1.36

 

 

$

4.98

 

 

$

5.42

 

 

$

—

 

 

 

20,000

 

 

617,000

 

 

April 17, 2027

 

 

8.04

 

 

$

8.13

 

 

$

7.54

 

 

$

—

 

 

 

154,250

 

 

6,146

 

 

May 18, 2027

 

 

8.13

 

 

$

7.35

 

 

$

4.75

 

 

$

—

 

 

 

4,610

 

 

10,000

 

 

May 18, 2027

 

 

8.13

 

 

$

7.35

 

 

$

7.65

 

 

$

—

 

 

 

2,500

 

 

30,000

 

 

August 8, 2027

 

 

8.35

 

 

$

10.38

 

 

$

7.38

 

 

$

—

 

 

 

7,500

 

 

20,000

 

 

April 9, 2028

 

 

9.02

 

 

$

9.03

 

 

$

8.01

 

 

$

—

 

 

 

—

 

 

337,500

 

 

May 15, 2028

 

 

9.12

 

 

$

10.99

 

 

$

7.89

 

 

$

—

 

 

 

121,875

 

 

150,000

 

 

July 9, 2028

 

 

9.27

 

 

$

9.69

 

 

$

—

 

 

$

6.83

 

 

 

—

 

 

73,295

 

 

August 22, 2028

 

 

9.39

 

 

$

10.23

 

 

$

—

 

 

$

7.21

 

 

 

—

 

 

11,500

 

 

September 4, 2028

 

 

9.43

 

 

$

10.19

 

 

$

—

 

 

$

7.19

 

 

 

—

 

 

50,000

 

 

September 10, 2028

 

 

9.44

 

 

$

10.34

 

 

$

—

 

 

$

7.30

 

 

 

—

 

 

50,000

 

 

September 24, 2028

 

 

9.48

 

 

$

9.71

 

 

$

—

 

 

$

6.79

 

 

 

—

 

 

1,500

 

 

October 8, 2028

 

 

9.52

 

 

$

8.25

 

 

$

—

 

 

$

5.84

 

 

 

—

 

 

75,000

 

 

October 15, 2028

 

 

9.54

 

 

$

8.75

 

 

$

—

 

 

$

6.19

 

 

 

—

 

 

50,000

 

 

October 22, 2028

 

 

9.56

 

 

$

10.16

 

 

$

—

 

 

$

7.20

 

 

 

—

 

 

10,000

 

 

October 29, 2028

 

 

9.58

 

 

$

9.71

 

 

$

—

 

 

$

6.87

 

 

 

—

 

 

20,000

 

 

November 19, 2028

 

 

9.63

 

 

$

8.00

 

 

$

—

 

 

$

5.66

 

 

 

—

 

 

20,000

 

 

December 3, 2028

 

 

9.67

 

 

$

8.66

 

 

$

—

 

 

$

6.13

 

 

 

—

 

 

15,000

 

 

December 17, 2028

 

 

9.71

 

 

$

9.42

 

 

$

—

 

 

$

6.66

 

 

 

—

 

 

10,000

 

 

January 7, 2029

 

 

9.77

 

 

$

9.10

 

 

$

—

 

 

$

6.30

 

 

 

—

 

 

50,000

 

 

January 14, 2029

 

 

9.79

 

 

$

8.19

 

 

$

—

 

 

$

5.67

 

 

 

—

 

 

9,000

 

 

January 22, 2029

 

 

9.81

 

 

$

7.65

 

 

$

—

 

 

$

5.30

 

 

 

—

 

 

7,500

 

 

February 4, 2029

 

 

9.84

 

 

$

7.26

 

 

$

—

 

 

$

5.03

 

 

 

—

 

 

3,100

 

 

March 18, 2029

 

 

9.96

 

 

$

6.85

 

 

$

—

 

 

$

4.73

 

 

 

—

 

 

560,558

 

 

March 28, 2029

 

 

9.99

 

 

$

6.76

 

 

$

—

 

 

$

4.62

 

 

 

—

 

 

3,532,099

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,635,735

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Reflects fair value of modified stock options on August 8, 2018.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of March 31, 2019, the unrecognized compensation cost related to non-vested stock options outstanding for employees and directors, was $10.1 million which will be recognized over a weighted-average remaining vesting period of approximately 3.0 years.   

The fair value of employee and director stock options for the three months ended March 31, 2019 had a weighted average grant date fair value of $4.71 per option and they were estimated using the Black-Scholes option pricing model using the following weighted average assumptions:

 

 

 

March 31, 2019

 

Stock price

 

$

6.93

 

Exercise price

 

$

6.93

 

Expected term

 

6.09 years

 

Expected volatility

 

 

76.90

%

Risk-free interest rate

 

 

2.28

%

Dividend rate

 

 

0.00

%

Non-Employee Stock Options

As of March 31, 2019 and December 31, 2018, all non-employee stock options are accounted for as equity instruments. The following table summarizes stock options outstanding and exercisable by non-employees as of March 31, 2019:

 

 

 

 

 

 

Options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Remaining

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of

 

Number of

 

 

 

 

Contractual Life

 

 

Exercise

 

 

Fair Value

 

 

Grant Date

 

 

Options

 

Options Outstanding

 

 

Expiration Date

 

(In Years)

 

 

Price

 

 

Post Modification 1

 

 

Fair Value

 

 

Exercisable

 

 

80,000

 

 

June 18, 2019

 

 

0.22

 

 

$

2.77

 

 

$

6.62

 

 

 

 

 

 

 

80,000

 

 

30,000

 

 

December 8, 2019

 

 

0.69

 

 

$

12.72

 

 

$

2.18

 

 

 

 

 

 

 

30,000

 

 

72,000

 

 

October 3, 2020

 

 

1.51

 

 

$

5.15

 

 

$

5.35

 

 

 

 

 

 

 

72,000

 

 

110,000

 

 

October 28, 2020

 

 

1.58

 

 

$

3.18

 

 

$

6.59

 

 

 

 

 

 

 

110,000

 

 

20,000

 

 

May 18, 2027

 

 

8.13

 

 

$

7.35

 

 

$

7.65

 

 

 

 

 

 

 

5,000

 

 

15,000

 

 

August 8, 2027

 

 

8.35

 

 

$

10.38

 

 

$

7.38

 

 

 

 

 

 

 

3,750

 

 

15,000

 

 

November 6, 2027

 

 

8.60

 

 

$

16.20

 

 

$

6.98

 

 

 

 

 

 

 

3,750

 

 

15,000

 

 

August 22, 2028

 

 

9.39

 

 

$

10.23

 

 

 

 

 

 

$

8.87

 

 

 

15,000

 

 

357,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

319,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Reflects fair value of modified stock options on August 8, 2018.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of March 31, 2019, the unrecognized compensation cost related to non-vested stock options outstanding for non-employees, was $0.1 million which will be recognized over a weighted-average remaining vesting period of approximately 2.3 years. The Company recognizes compensation expense for only the portion of awards that are expected to vest.

 

Restricted Stock Units

As of March 31, 2019, the Company had 964 RSUs outstanding with a weighted average grant date fair value of CAD$10.00 per share. For the three months ended March 31, 2019, there was no vested RSUs and as such there was no issuance of shares of common stock in settlement of vested RSUs.

Stock-Based Compensation Expense

Stock-based compensation expense is classified in the Company’s condensed consolidated statements of operations and comprehensive income (loss) as follows (amounts in thousands):

 

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

 

 

2018

 

Research and development

 

$

195

 

 

 

 

$

99

 

Cost of sales

 

 

3

 

 

 

 

 

—

 

Selling, general and administrative

 

 

637

 

 

 

 

 

288

 

Total

 

$

835

 

 

 

 

$

387