SEC Filings

10-Q
AVEXIS, INC. filed this Form 10-Q on 08/10/2017
Entire Document
 

respectively, on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

 

June 30, 

 

June 30, 

 

 

June 30, 

 

June 30, 

 

 

 

    

2017

    

2016

    

    

2017

    

2016

 

 

Expected volatility

 

87.36

%  

90.00

%  

 

87.24

%  

90.00

%

 

Risk-free interest rate

 

1.90

%  

1.57

%  

 

1.91

%  

1.57

%

 

Expected term (in years)

 

6.08

 

6.08

 

 

6.08

 

6.08

 

 

Expected dividend yield

 

0.00

%  

0.00

%  

 

0.00

%  

0.00

%

 

 

Options generally expire ten years following the date of grant. Options typically vest over a period of three to four years, but vesting provisions can vary by award based on the discretion of the Board of Directors. Certain awards issued by the Company include clinical development-related performance conditions that must be achieved in order for vesting to occur. Options to purchase common stock carry an exercise price equal to the estimated fair value of the Company’s common stock on the date of grant. Options to purchase shares of the Company’s common stock may be exercised by payment of the exercise price in cash, by the delivery of previously acquired shares of common stock having a fair value equal to the exercise price payable or the withholding of common shares equal to the fair value of the aggregate exercise price. Upon the termination of service of a holder of stock options awarded under the Plans, all unvested options are immediately forfeited and vested options may be exercised within three months of termination.

 

Service-Based Restricted Stock Units

 

As of June 30, 2017, and December 31, 2016, there were 37,934 and 57,500, respectively, outstanding service-based restricted stock units (“RSUs”) granted to employees.  During the six months ended June 30, 2017, 18,966 RSUs vested, which included 5,961 RSUs exchanged for tax-related purposes resulting in the remaining 13,005 RSUs converting to common stock. The Company recognized RSU-related stock-based compensation expense of $517,000 during the six months ended  June 30, 2017, of which, $459,000 is research and development expense and $58,000 is general and administrative expense. No RSUs were issued and outstanding as of June 30, 2016.  At June 30, 2017 and 2016, there was $710,000 and $0, respectively, of unrecognized compensation cost related to unvested RSUs that will be recognized as expense over a weighted-average period of 1.1 years. A summary of the status of the Company's RSUs at June 30, 2017 and of changes in RSUs outstanding under the 2016 Plan for the six months ended June 30, 2017 is as follows (in thousands, except per share data):

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

Average

 

 

 

 

Grant Date

 

 

Number

 

Fair Value

 

    

of Shares

    

Per Share

Outstanding at December 31, 2016

 

58

 

$

34.90

Granted

 

 —

 

 

 —

Vested

 

(19)

 

$

34.90

Forfeited and cancelled

 

(1)

 

$

34.90

Outstanding at June 30, 2017

 

38

 

$

34.90

 

The Company granted RSUs with service-based vesting terms. The outstanding RSUs vest over a period of three years. For awards that vest subject to the satisfaction of service requirements, compensation expense is measured based on the fair value of the RSUs on the date of grant and is recognized as expense on a straight-line basis, net of estimated forfeitures, over the requisite service period. All RSUs issued vest over time as stipulated in the individual RSU award agreements.

 

Performance-Based Restricted Stock Units

 

On March 20, 2017, the Company granted to certain employees a total of 49,332 performance-based restricted stock units (“PSUs)”. These PSUs vest upon the achievement of certain regulatory and manufacturing milestones. If the

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