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S-1
PROTEON THERAPEUTICS INC filed this Form S-1 on 09/16/2014
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Proteon Therapeutics, Inc.

Notes to Financial Statements (Continued)

10. Common Stock (Continued)

Reserve for future issuance

        The Company has reserved for future issuances the following number of shares of Common Stock:

 
  December 31,    
 
 
  June 30,
2014
 
 
  2012   2013  
 
   
   
  (unaudited)
 

Conversion of Series A Preferred Stock

    22,638,465     22,638,465     26,989,109  

Conversion of Series A-1 Preferred Stock

    10,909,091     10,909,091     13,300,820  

Conversion of Series B Preferred Stock

    20,754,461     20,754,461     25,556,944  

Conversion of Series C Preferred Stock

    17,550,758     17,550,758     21,611,920  

Conversion of Series D Preferred Stock

            52,813,827  

Stock-based compensation awards

    10,036,341     9,888,775     18,019,231  

Warrants to purchase Common Stock

    10,471,282     10,471,282     10,471,282  
               

Total

    92,360,398     92,212,832     168,763,134  
               
               

11. Stock-based Compensation

        In March 2006, the Company adopted the 2006 Equity Incentive Plan (the "Plan"). Under the Plan, the Company has granted stock options to selected officers, employees and consultants of the Company. As of June 30, 2014 (unaudited), the Plan, as amended by the May 2014 Series D Preferred Stock and other Board of Director actions, provides for the issuance of up to 18,222,157 shares of Common Stock.

        Terms of stock award agreements, including vesting requirements, are determined by the Board of Directors, subject to the provisions of the Plan. Option and share awards generally vest over three to four years. Certain option and share awards provide for accelerated vesting if there is a change in control as defined in the Plan. The options are exercisable from the date of grant for a period of ten years. For options granted to date, the exercise price equaled the fair value of the Common Stock as determined by the Board of Directors on the date of grant.

        Stock options issued to non-employees are accounted for using the fair value method of accounting, are periodically revalued as the options vest and are recognized as expense over the related service period. The total expense related to all options granted to non-employees for the years ended December 31, 2012 and 2013 and the six months ended June 30, 2013 and 2014 (unaudited) was $9,000, $32,000, $20,000 and $2,000, respectively.

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