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SEC Filings

10-Q
PROTEON THERAPEUTICS INC filed this Form 10-Q on 08/07/2017
Entire Document
 
 

 

 
6. Stock-based Compensation

 

Stock Options

 

The following table summarizes stock option activity for employees and non-employees:

 

   Options  Weighted-
Average
Exercise
Price
  Weighted-
Average
Remaining
Contractual
Term (years)
  Aggregate
Intrinsic
Value
             
Outstanding at December 31, 2016   2,166,254   $8.55    7.1   $124 
Granted   706,004   $2.00           
Exercised   (74,001)  $1.45           
Forfeited   (14,687)  $16.92           
Outstanding at June 30, 2017   2,783,570   $7.03    7.3   $45 
Exercisable at June 30, 2017   1,388,426   $7.46    5.9   $34 
Vested or expected to vest at June 30, 2017 (1)   2,783,570   $7.03    7.3   $45 

___________________

(1) Represents the number of vested options at June 30, 2017 plus the number of unvested options expected to vest based on the unvested options outstanding at June 30, 2017.

 

Employee Stock Purchase Plan

 

The 2014 Employee Stock Purchase Plan (ESPP) initially authorized the issuance of up to 140,500 shares of Common Stock. The number of shares increases each January 1, commencing on January 1, 2015 and ending on (and including) January 1, 2024, by an amount equal to the lesser of one percent of the outstanding shares as of the end of the immediately preceding fiscal year, 281,000 shares, or any lower amount determined by the Company’s Board of Directors prior to each such January 1st. The Company’s Board of Directors has determined there was to be no increase on January 1, 2017. As of June 30, 2017, the 2014 ESPP authorized the issuance of up to 304,991 shares of Common Stock. The fifth offering under the 2014 ESPP began on January 1, 2017 and ended on June 30, 2017. 45,047 shares were issued during the three and six months ended June 30, 2017 under the 2014 ESPP. The Company incurred $52,000 and $0.1 million in stock-based compensation expense related to the 2014 ESPP for the three and six months ended June 30, 2017, respectively. The Company incurred $16,000 and $32,000 in stock-based compensation expense related to the 2014 ESPP for the three and six months ended June 30, 2016, respectively.

 

Common Stock

 

The Company has the following shares reserved for future issuance:

 

   June 30,
2017
  December 31,
2016
       
Stock-based compensation awards   3,572,457    2,982,470 
Employee Stock Purchase Plan   247,774    292,821 
Total   3,820,231    3,275,291 

 

 

 
7. Income Taxes

 

Deferred taxes are recognized for temporary differences between the basis of assets and liabilities for financial statement and income tax purposes. The Company has evaluated the positive and negative evidence bearing upon the Company’s ability to realize the benefit of its deferred tax assets. Based on the Company’s history of operating losses, the Company has concluded that it is more likely than not that the benefit of its deferred tax assets will not be realized. Due to the uncertainty surrounding the realization of the favorable tax attributes in future tax returns, the Company has provided a full valuation allowance against its deferred tax assets. There were no significant income tax provisions or benefits for the six months ended June 30, 2017 and 2016.

 

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