7. Warrants
As of December 31, 2018, there were 3,567,015 common stock warrants outstanding with exercise prices ranging from $0.09 per share to $9.13
per share. Such warrants were issued between October 2012 and February 2015 with expiration dates ranging from March 2022 through December 2024. There were no warrants issued or exercised during the three months ended March 31, 2019. There were
3,567,015 outstanding warrants as of March 31, 2019.
8. Stock Incentive Plans
In 2008, our board of directors adopted the 2008 Stock Incentive Plan (the 2008 Plan), which provided for the grant of incentive
stock options, nonqualified stock options, and restricted stock to employees, directors, and nonemployees of the Company up to 3,547,741 shares of common stock. Option awards expire 10 years from the grant date and generally vest over
four years, but vesting conditions can vary at the discretion of our board of directors.
In July 2015, the Company approved the 2015
Stock Option and Incentive Plan (the 2015 Plan), which became effective upon our initial public offering. The 2015 Plan allows the grant of incentive stock options, nonqualified stock options, and restricted stock to employees,
directors, and nonemployees of the Company up to 3,566,296 shares of common stock. In connection with the adoption of the 2015 Plan, no further option grants are permitted under the 2008 Plan and any expirations, cancellations, or terminations under
the 2008 Plan are available for issuance under the 2015 Plan. On January 1, 2019, the number of shares reserved and available for issuance under the 2015 Stock Plan increased by 978,245 shares of common stock pursuant to a provision in the 2015
Stock Plan that provides that the number of shares reserved and available for issuance will automatically increase each January 1, beginning on January 1, 2016, by 4% of the number of shares of common stock issued and outstanding on the
immediately preceding December 31 or such lesser number as determined by the compensation committee of the board of directors. The compensation committee of the board of directors determined there would be no increase to the shares reserved and
available under the 2015 Stock Plan on January 1, 2018. As of March 31, 2019, the total number of shares authorized for stock award plans is 8,092,282 of which 2,838,208 remain available for grant. There are 4,831,464 stock options
outstanding as of March 31, 2019.
Stock-based compensation for the three months ended March 31, 2019 and 2018 consisted of the
following:
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
($ in thousands)
|
|
General and administrative
|
|
$
|
311
|
|
|
$
|
323
|
|
Research and development
|
|
|
311
|
|
|
|
314
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
622
|
|
|
$
|
637
|
|
|
|
|
|
|
|
|
|
|
The fair value of each stock option issued was estimated at the date of grant using the Black-Scholes option
model with the following weighted-average assumptions:
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
|
|
2019
|
|
|
2018
|
|
Expected volatility
|
|
|
101
|
%
|
|
|
77
|
%
|
Expected term (years)
|
|
|
6.0
|
|
|
|
6.3
|
|
Risk-free interest rate
|
|
|
2.52
|
%
|
|
|
2.71
|
%
|
Expected dividend yield
|
|
|
0
|
%
|
|
|
0
|
%
|
We issued approximately 492,000 stock option grants in the three months ended March 31, 2019. The
weighted-average grant date fair value per share of stock options granted during the three months ended March 31, 2019 was $2.99. We issued approximately 749,000 stock option grants in the three months ended March 31, 2018. The
weighted-average grant date fair value per share of options granted during the three months ended March 31, 2018 was $1.05.
9. Commitments and
Contingencies
Legal Proceedings
On June 9, 2016, Chiasma, Inc. and certain of our current and former officers were named as defendants in a purported federal securities
class action lawsuit filed in the United States District Court for the District of Massachusetts, styled
Gerneth v. Chiasma, Inc., et al
. An amended complaint was filed by the lead plaintiff on February 10, 2017
15