Stockholders' Equity And Stock-Based Compensation

3 Months Ended

Mar. 31, 2017

Stockholders' Equity And Stock-Based Compensation [Abstract]

Stockholders' Equity And Stock-Based Compensation

7.  Stockholders’ Equity and Stock-Based Compensation

Private Placement

On February 7, 2017, the Company entered into a securities purchase agreement with Robert W. Duggan and Maky Zanganeh (the “Investors”), pursuant to which the Company, in a private placement, agreed to issue and sell to the Investors an aggregate of 819,673 shares of the Company’s common stock, par value $0.001 per share, at a price per share of $6.10 (the “Shares”), for net proceeds of approximately $4,965,000 (the “Private Placement”).

In connection with the Private Placement, the Company granted certain registration rights to the Investors, pursuant to which, among other things, the Company is obligated to prepare and file with the Securities and Exchange Commission a registration statement to register for resale the Shares on or prior to July 31, 2017.

Equity Plans

As of March 31, 2017, the Company had one active equity compensation plan, the2015 Stock Incentive Plan (the “2015 Plan”). 

The following table summarizes stock option activity for the 2015 Plan for the three-month period ended March 31, 2017 (in thousands, except per share amounts):

	Stock Options Outstanding
			Weighted	Weighted average
	Number		average	remaining life
	of shares		exercise price	(in years)
Balances — December 31, 2016	1,229	$	3.82	7.6
Options granted	58		8.60
Options exercised	(4)		4.00
Options canceled	—		—
Options expired	—		—
Balances — March 31, 2017	1,283	$	4.03	7.5
Exercisable	419

Stock-based Compensation

Total stock-based compensation expense consisted of the following (in thousands):

	Three-Month Periods Ended
	March 31,
	2017		2016
General and administrative	$	204	$	148
Research and development		59		45
Total stock-based compensation expense	$	263	$	193

The Company estimated the fair value of employee stock options on the grant date using the Black-Scholes option pricing model. The estimated fair value of employee stock options is amortized on a straight-line basis over the requisite service period of the awards. The Company reviews, and when deemed appropriate, updates the assumptions used on a periodic basis. Due to the limited trading history of the Company’s common stock, the Company utilizes a portfolio of comparable companies to estimate volatility. The fair value of employee stock options was estimated using the following weighted average assumptions:

	Three-Month Periods Ended March 31,
	2017	2016
Expected term in years	5.8 - 6.1	6.1
Expected volatility	80%	80%
Risk-free interest rate	2.0 - 2.1%	1.50%
Dividend yield	—	—

The Company granted stock options to a non-employee during the three-month period ended March 31, 2017. The Company uses the Black-Scholes option-pricing model to estimate the fair value of awards granted to nonemployees. The measurement of stock-based compensation for nonemployees is subject to periodic adjustments as the underlying equity instruments vest, and the resulting change in value, if any, is recognized in the Company’s consolidated statements of operations during the period the related services are rendered.The fair value of a nonemployee stock option during the three-month period ended March 31, 2017 was estimated using the following weighted average assumptions: expected term: 9.9years; expected volatility: 80%; risk-free interest rate: 2.4%; and dividend yield: none.