Annual report pursuant to Section 13 and 15(d)

Stock-Based Compensation

v2.4.1.9
Stock-Based Compensation
 12 Months Ended
Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation
Stock-Based Compensation

For the years ended December 31, 2014, 2013 and 2012, our total stock-based compensation expense was approximately $1.6 million, $2.9 million and $2.3 million, respectively. We have not recorded any income tax benefit related to stock-based compensation for the years ended December 31, 2014, 2013 and 2012.
 
A summary of the status of our stock options as of December 31, 2014, and changes during the year then ended, is presented below: 
 
Year Ended December 31, 2014
 
Number of
Options
 
Weighted 
Average 
Exercise 
Price
 
Weighted 
Average 
Remaining 
Contractual 
Life
 
Aggregate 
Intrinsic 
Value
Outstanding at beginning of year
4,866,602

 
$
2.38

 
 
 
 

Granted
2,534,605

 
1.56

 
 
 
 

Exercised
(468,000
)
 
0.48

 
 
 
 

Canceled and forfeited
(1,467,443
)
 
2.53

 
 
 
 

Expired
(120,000
)
 
0.53

 
 
 
 

Outstanding at end of year
5,345,764

 
$
2.16

 
7.8 years
 
$
1,502,921

 
 
 
 
 
 
 
 
Exercisable at end of year
1,960,554

 
$
2.23

 
6.1 years
 
$
713,078



Following a review undertaken by the Company’s Board of Directors and senior management in June 2013, the Company determined that the Board had inadvertently granted stock awards in February 2012 to the Company’s Chief Executive Officer, Mark J. Pykett, in excess of the amount then authorized under the 2002 Plan. Consequently, the Board canceled options to purchase 50,000 shares of the Company’s common stock issued to Dr. Pykett (the amount by which the grants to Dr. Pykett in February 2012 exceeded the 2002 Plan’s share limitation), and Dr. Pykett agreed to the cancellation.
 
The weighted average grant-date fair value of options granted in 2014, 2013, and 2012 was $1.56, $1.81 and $1.86, respectively. During 2014, 468,000 stock options with an aggregate intrinsic value of $582,000 were exercised in exchange for issuance of 299,360 shares of our common stock, resulting in gross proceeds of $70,000. During 2013, 60,000 stock options with an aggregate intrinsic value of $126,000 were exercised in exchange for issuance of 39,649 shares of our common stock, resulting in gross proceeds of $39,000. During 2012, 1,232,001 stock options with an aggregate intrinsic value of $3.4 million were exercised in exchange for issuance of 1,225,271 shares of our common stock, resulting in gross proceeds of $752,000. In 2014, 2013, and 2012, the aggregate fair value of stock options vested during the year was $4,000, $36,000 and $460,000, respectively.
 
A summary of the status of our unvested restricted stock as of December 31, 2014, and changes during the year then ended, is presented below:
 
Year Ended
December 31, 2014
 
Number of
Shares
 
Weighted 
Average
Grant-Date
Fair Value
Unvested at beginning of year
634,250

 
$
2.73

Granted
380,250

 
1.48

Vested
(216,250
)
 
3.08

Forfeited
(300,000
)
 
2.26

Expired
—

 
—

Unvested at end of year
498,250

 
$
1.91



In February 2014, 49,000 shares of restricted stock held by non-employee directors with an aggregate fair value of $96,000 vested as scheduled according to the terms of the restricted stock agreements. In March 2014, 100,000 shares of restricted stock with an aggregate fair value of $205,000 vested as scheduled according to the terms of the restricted stock agreement. In May 2014, 175,000 shares of restricted stock held by our former CEO with an aggregate fair value of $278,000 were forfeited in connection with his separation from employment. In September 2014, 125,000 shares of restricted stock held by our former CEO with an aggregate fair value of $166,000 were forfeited in connection with termination of his Consulting Agreement. In October 2014, 20,000 shares of restricted stock with an aggregate fair value of $27,000 vested upon reaching a milestone defined by the terms of the restricted stock agreement. In November 2014, 12,250 shares of restricted stock held by a non-employee director with an aggregate fair value of $15,000 vested as scheduled according to the terms of the restricted stock agreement. In December 2014, 15,000 shares of restricted stock held by our former CEO with an aggregate fair value of $19,000 vested as scheduled in accordance with the terms of the restricted stock agreement. Also in December 2014, 20,000 shares of restricted stock with an aggregate fair value of $26,000 vested upon reaching a milestone defined by the terms of the restricted stock agreement.

In February 2013, 100,000 shares of restricted stock with an aggregate fair value of $308,000 vested as scheduled according to the terms of a restricted stock agreement. In March 2013, the Company received FDA approval to market Lymphoseek. As a result of the Lymphoseek approval, 560,000 shares of restricted stock vested with an aggregate fair value of $1.8 million. In April 2013, 85,000 shares of restricted stock held by non-employee directors with an aggregate fair value of $224,000 vested as scheduled according to the terms of the restricted stock agreements. In July 2013, 29,250 shares of restricted stock with an aggregate fair value of $83,000 were forfeited as a result of a non-employee director departing from the Board.
 
During 2014, 2013 and 2012, 216,250, 745,000 and 30,000 shares, respectively, of restricted stock vested with aggregate vest date fair values of $387,000, $2.3 million and $85,000, respectively.
  
During 2014, 2013 and 2012, we paid tax withholdings related to stock options exercised and restricted stock vested of $131,000, $659,000, and $9,000, respectively. As of December 31, 2014, there was approximately $1.9 million of total unrecognized compensation cost related to stock option and restricted stock awards, which we expect to recognize over remaining weighted average vesting terms of 1.95 years. See Note 1(e).