9.	Stock-based Compensation

Common Stock

The Company granted 66,234, 42,203 and 13,106 shares of restricted stock to the Company’s independent directors during the years ended December 31, 2017, 2016 and 2015, respectively.

Stock Incentive Plan

In May of 2008, the Company adopted the 2008 Long-term Incentive Plan (“2008 Plan”) which provides for the grant of stock options, stock appreciation rights and restricted stock to certain designated employees of the Company, non-employee directors of the Company and certain other persons performing significant services for the Company as designated by the Compensation Committee of the Board of Directors. At December 31, 2014, the number of common shares reserved for issuance under the 2008 plan was 1,250,000. Options granted under the plan vest either (i) over a 48-month period at the rate of 25% each year until fully vested or (ii) over a vesting period determined by the Board of Directors. This plan was replaced in April 2015 by the 2015 Long term-Incentive Plan (“2015 Plan”) and all remaining shares were made available under this plan. At December 31, 2015, the number of common shares and restricted stock reserved for issuance under the 2015 plan was 1,000,000 and 200,000, respectively. Options granted under the plan vest either (i) over a 48-month period at the rate of 25% each year until fully vested (ii) over a 48-month period at the rate of 6.25% each quarter until fully vested or (iii) over a vesting period determined by the Board of Directors. This plan was replaced in May 2016 by the 2015 Amended and Restated Long-term Incentive Plan (“Amended and Restated 2015 Plan”) and all remaining shares were made available under the Amended and Restated 2015 Plan. As of December 31, 2017, there were 1,861,142 shares available for future grant under the Amended and Restated 2015 Plan

Stock Incentive Plan – Stock Options

The Company’s stock options have a maximum term of 10 years from the date of grant. Options granted prior to 2006 have a 10-year term. Since 2006, the Company has been granting stock options with a 7-year term.

A following table summarizes stock option activity during the year ended December 31, 2017:

	Number of Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (year)		Aggregate Intrinsic Value (in thousands)
Outstanding, December 31, 2016		1,516,059		$	7.25		5.19	$	48
Granted		680,400			5.17
Exercised		—			—
Forfeited		(394,409	)		6.71
Outstanding, December 31, 2017		1,802,050		$	6.59		4.86	$	8

Vested		822,736			7.19		3.85		—
Unvested		979,314			6.08		5.71		8
Vested or expected to vest, December 31, 2017		1,802,050		$	6.59	4.86		$	8
Exercisable, December 31, 2017		822,736		$	7.19	3.85

Juniper granted 680,400, 657,500 and 387,000 stock options to employees during the years ended December 31, 2017, 2016 and 2015, respectively. Cash received from option exercises was $0.1 million during the year ending December 31, 2015. No options were exercised in the year ended December 31, 2017 and 2016.

The Company uses the Black-Scholes option pricing model to determine the estimated fair value for stock-based awards. The Black-Scholes option pricing model requires the input of various subjective assumptions, including the option’s expected life and the price volatility of the underlying stock. The weighted-average fair value of the options granted to employees during the years ended December 31, 2017, 2016 and 2015 was $2.43, $4.66 and $4.38, respectively based on the following assumptions:

	Years Ended December 31,
	2017		2016		2015
Risk free interest rate	1.45%-1.59%		0.85%-1.45%		0.87%-1.20%
Expected term	4.5-4.75 years		4.75 years		4.56-4.75 years
Dividend yield		—		—		—
Expected volatility	53.15%-55.20%		55.23%-79.29%		76.86%-83.09%

As of December 31, 2017, there was $2.5 million of total unrecognized compensation costs related to non-vested options. The remaining cost is expected to be recognized over a weighted average period of 2.7 years.

The Company records stock-based compensation expense for stock options granted to non-employees based on the fair value of the stock options, which is re-measured over the graded vesting term resulting in periodic adjustments to stock-based compensation expense. During 2017 and 2016, no stock options were granted by the Company to non-employees. The stock-based compensation expense recorded for non-employees is primarily reflected in the research and development line of the statement of operations. The non-employee options reflected in the research and development line are re-measured on a quarterly basis from the date of grant. The Company recorded a reduction of stock-based compensation expense for non-employees of $0.1 million for each of the years ended December 31, 2017 and 2016, as a result of impacts of changes in the fair value. Stock-based compensation recorded for non-employees was $1.1 million in the year ended December 31, 2015. No tax benefit has been recognized due to the net tax losses during the periods presented.

The weighted-average fair value of the options granted to non-employees during the year ended December 31, 2015 was $4.52 based on the following assumptions:

	2015
Risk free interest rate	1.47%-1.54%
Expected term	7 years
Dividend yield		—
Expected volatility	82.88%-83.09%

Stock Option Plan – Restricted Stock

The Company periodically grants awards of restricted stock to employees. Restricted stock grants consist of grants of the Company’s common stock that may vest in the future. The Board has set a one, two, or four year vesting period for most of the issued restricted shares except annual grants to independent Directors which vest at the next annual meeting of stockholders. The fair value of each restricted share grant is equal to the market price of the Company’s common stock at the date of grant. Expense relating to restricted shares is recorded at the closing price on the grant date and amortized ratably over the vesting period.

A summary of the Company’s restricted stock activity and related information for the year ended December 31, 2017 is as follows:

	Shares			Weighted Average Grant Date Fair Value
Unvested, December 31, 2016		40,933		$	7.42
Granted		118,934		$	5.03
Vested		(40,933	)	$	7.42
Forfeited		(15,500	)	$	5.15
Unvested, December 31, 2017		103,434		$	5.01

As of December 31, 2017, there was $0.3 million of total unrecognized compensation costs related to non-vested restricted share-based compensation. The remaining cost is expected to be recognized over a weighted average period of approximately 2.1 years. The total fair value of shares vested during the year ended December 31, 2017 was $0.3 million.

Juniper grants performance-based restricted stock units to employees which vest upon the occurrence of certain operational and strategic events that were determined by the Company’s Board of Directors. A summary of the Company’s performance-based restricted stock activity for the year ended December 31, 2017 is as follows:

	Performance-based Restricted Stock Units
Unvested, December 31, 2016		—
Granted		186,000
Vested		—
Forfeited		(109,550	)
Unvested, December 31, 2017		76,450

No performance-based restricted stock units were awarded during the year ended December 31, 2016. None of the outstanding performance-based restricted stock units were deemed probable of vesting at December 31, 2017. On January 8, 2018, the Company announced the 4.5-year extension of its supply agreement for Crinone with an affiliate of Merck KGaA, Darmstandt, Germany. On February 7, 2018, the Company’s Compensation Committee of the Board of Director approved the vesting of 27,800 awards affiliated with this performance condition and as a result the Company will record a charge to stock compensation expense during the first quarter of 2018 totaling $0.2 million.