Stock-based Compensation

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

Stock-based Compensation

Stock-based Compensation

Stock Incentive Plan

At the Annual Meeting of Stockholders on June 18, 2020, (the "Annual Meeting"), the stockholders of the Company voted to approve the Immunomedics, Inc. Amended and Restated 2014 Long-Term Incentive Plan (the “Amended 2014 Plan”). The Amended 2014 Plan is a continuation of the Immunomedics’ 2014 Long-Term Incentive Plan (the “2014 Plan”). The Amended 2014 Plan, in addition to certain other changes, increases the share pool limit by adding 7,000,000 shares of common stock to the Amended 2014 Plan as of the effective date and removes references to “qualified performance based awards” under Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”). The Amended 2014 Plan also, among other changes, increases the maximum term applicable to options and stock appreciation rights from seven to ten years, includes a twelve month minimum vesting restriction period for all awards, except in certain limited circumstances as described in the Amended 2014 Plan, increases the limit applicable to incentive stock options, and removes liberal share recycling provisions. The Amended 2014 Plan extends the termination date of the plan from August 14, 2024 to April 16, 2030.

Stock-based compensation expense included in the Unaudited Condensed Consolidated Statements of Comprehensive Loss was $7.3 million, and $2.4 million for the three months ended June 30, 2020 and 2019, respectively, $11.1 million, and $4.1 million for the six months ended June 30, 2020 and 2019, respectively.

The following table summarizes the activity for stock options, RSUs and PSOs for the six months ended June 30, 2020 (in thousands):

	Stock Options	RSUs	PSOs
Equity awards outstanding, beginning of year	5,901	58	837
Changes during the year:
Granted	1,963	226	—
Exercised	(142)	(58)	(3)
Expired or forfeited	(762)	(100)	(208)
Equity awards outstanding, end of period	6,960	126	626

As of June 30, 2020, total compensation cost related to unvested awards not yet recognized and the weighted-average periods over which the awards are expected to be recognized were as follows ($ in thousands):

	Stock Options		RSUs		PSOs
Unrecognized compensation cost	$	46,664	$	1,818	$	2,001
Expected weighted-average period in years of compensation cost to be recognized	2.9		2.4		0.6

Stock Purchase Plan

On April 16, 2020, the Board of Directors (the "Board") adopted the Immunomedics, Inc. 2020 Employee Stock Purchase Plan (the “Purchase Plan”), which was approved by the Company’s stockholders at the Annual Meeting on June 18, 2020. The Purchase Plan authorizes the issuance of up to 500,000 shares of the Company’s common stock. Generally, each offering under the Purchase Plan will be for a period of 6 months (an “Offering Period”), with new Offering Periods commencing on or about the sixteenth days of November and May of each year and ending on or about the fifteenth days of the next May and November of each year. The Board may establish a different term for one or more offerings, not to exceed 27 months, or different beginning or ending dates for any Offering Period. The purchase price for each Offering Period shall be

eighty-five percent (85%) of the lesser of (a) the fair market value of a share of common stock on the offering date of the Offering Period or (b) the fair market value of a share of common stock on the purchase date.