NOTE 12. Equity Incentive Plans

Prior to the Merger, the Company issued equity awards for compensation purposes to employees, directors and consultants under the Company’s 2007 Equity Incentive Plan (the “2007 Plan”). The 2007 Plan expired in July 2017. As of March 31, 2018, the Company had no shares of common stock available for issuance under the 2007 Plan. Equity awards under the 2007 Plan do not become available for future issuance if such awards are forfeited or otherwise terminate. Each stock option to acquire shares of Private Vaxart stock, whether vested or unvested, that had not previously been exercised was assumed in the Merger.

In November 2016, Aviragen’s stockholders approved the 2016 Equity Incentive Plan (“2016 Equity Plan”), under which all outstanding awards under their previous plans became available for issuance under the 2016 Equity Plan if such awards are forfeited or otherwise terminate. The purpose of the 2016 Equity Plan is to assist the Company in attracting and retaining valued employees, consultants and non-employee directors by offering them a greater stake in the Company’s success and a closer identity with it, and to encourage ownership of the Company’s shares by such persons.

Under the 2016 Equity Plan, the Company is authorized to issue incentive stock options (“ISOs”), non-qualified stock options (“NQSOs”), restricted stock (“RSAs”) and restricted stock units (“RSUs”). Awards that expire or are canceled generally become available for issuance again under the 2016 Equity Plan. The number of shares of the Company’s common stock available under the 2016 Equity Plan will be subject to adjustment in the event of a stock split, stock dividend or other extraordinary dividend, or other similar change in the Company’s common stock or capital structure. Awards may vest over varying periods, as specified by the Company’s Board of Directors for each grant, and have a maximum term of ten years from the grant date.

A summary of stock option transactions in the three months ended March 31, 2018, is as follows:

			Weighted Average Exercise Price
	Shares Available For Grant	Number of Options Outstanding



Balance at January 1, 2018	—	304,850	$	9.50
Assumed on consummation of Merger	291,102	627,106	$	24.14
Exercised	—	(2,013)	$	6.49
Forfeited	—	(17,208)	$	8.83
Canceled	66,597	(79,793)	$	23.53
Balance at March 31, 2018	357,699	832,942	$	19.20

In addition, the 2016 Equity Plan has a reserve of 22,727 shares available for future issuance as RSAs and RSUs. As of March 31, 2018, no such awards have been granted under the 2016 Equity Plan.

Total stock‑based compensation recognized for options was as follows:

	Three Months Ended March 31.
	2018		2017
	(in thousands)
Research and development	$	44	$	69
General and administrative		42		55
Totalstock-based compensation	$	86	$	124

As of March 31, 2018, the unrecognized stock based compensation cost related to outstanding unvested stock options that are expected to vest was $0.4 million, which the Company expects to recognize over an estimated weighted average period of 1.90 years.