Quarterly report pursuant to Section 13 or 15(d)

Stock Plans

v3.10.0.1
Stock Plans
9 Months Ended
Sep. 30, 2018
Share-based Compensation [Abstract]  
Stock Plans [Text Block]
2.
Stock Plans
 
The following table summarizes the stock-based compensation expense recorded for awards under the stock option plans for the three and nine-month periods ended September 30, 2018 and 2017:
 
 
 
Three Months Ended
September 30,
 
 
Nine Months Ended
September 30,
 
(in thousands, except per share amounts)
 
2018
 
 
2017
 
 
2018
 
 
2017
 
Research and development
 
$
136
 
 
$
134
 
 
$
455
 
 
$
379
 
General and administrative
 
 
252
 
 
 
270
 
 
 
767
 
 
 
828
 
Total stock-based compensation expenses
 
$
388
 
 
$
404
 
 
$
1,222
 
 
$
1,207
 
 
No tax benefit was recognized related to stock-based compensation expense since we have accumulated operating losses and we have established a full valuation allowance to offset all the potential tax benefits associated with our deferred tax assets.
   
We use the Black-Scholes-Merton option-pricing model with the following assumptions to estimate the stock-based compensation expense for the three and nine-month periods ended September 30, 2018 and 2017:
 
 
 
Three Months Ended
September 30,
 
 
Nine Months Ended
September 30,
 
 
 
2018
 
 
2017
 
 
2018
 
 
2017
 
Weighted-average risk-free interest rate
 
 
2.9
%
 
 
2.0
%
 
 
2.7
%
 
 
2.1
%
Expected dividend payments
 
 
 
 
 
 
 
 
 
 
 
 
Expected holding period (years)
1
 
 
6.4
 
 
 
6.6
 
 
 
6.4
 
 
 
6.6
 
Weighted-average volatility factor
2
 
 
0.91
 
 
 
0.88
 
 
 
0.89
 
 
 
0.88
 
Estimated forfeiture rates
3
 
 
25
%
 
 
26
%
 
 
26
%
 
 
27
%
 
(1)
Expected holding period is based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and the expectations of future employee behavior.
 
(2)
Weighted average volatility is based on the historical volatility of our common stock.
 
(3)
Estimated forfeiture rates are based on historical data.
 
No options were granted during the three-month period ended September 30, 2018. Options to purchase approximately 50,000 shares of common stock were granted during the three-month period ended September 30, 2017. Options to purchase approximately 950,000 and 546,000 shares of common stock were granted during the nine-month periods ended September 30, 2018 and 2017, respectively.
 
The following table summarizes option activity for the nine-month period ended September 30, 2018:
 
(in thousands, except per share amounts)
 
Options
 
 
Weighted

Average

Exercise

Price
 
 
Weighted

Average

Remaining

Option

Term
 
 
Aggregate

Intrinsic

Value
 
Outstanding at January 1, 2018
 
 
2,728
 
 
$
4.32
 
 
 
5.75
 
 
$
30
 
Granted
 
 
950
 
 
 
0.97
 
 
 
 
 
 
 
 
 
Exercised
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expired
 
 
(18
)
 
 
8.36
 
 
 
 
 
 
 
 
 
Cancelled or forfeited
 
 
(188
)
 
 
3.88
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding at September 30, 2018
 
 
3,472
 
 
$
3.40
 
 
 
6.19
 
 
$
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercisable at September 30, 2018
 
 
3,064
 
 
$
3.65
 
 
 
5.95
 
 
$
 
  
No shares of restricted stock were awarded to employees, directors and consultants during the three and nine-month periods ended September 30, 2018 and 2017.
  
As of September 30, 2018, there was approximately $0.3 million of total unrecognized compensation expense related to non-vested stock options. This expense is expected to be recognized over a weighted-average period of 0.3 years.
On August 7, 2018, our stockholders approved an amendment to the Titan Pharmaceuticals, Inc. 2015 Omnibus Equity Incentive Plan to increase the number of shares authorized for awards thereunder from 2,500,000 to 3,500,000.