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SEC Filings

10-Q
ATHENEX, INC. filed this Form 10-Q on 05/09/2019
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c.

The Company receives certain clinical development services from ZenRx Limited and its subsidiaries (“ZenRx”), a company for which one of our executive officers serves on the board of directors. In connection with such services, the Company made payments to ZenRx of $0.3 million and $0.1 million for the three months ended March 31, 2019 and 2018, respectively.  In April 2013, the Company entered into a license agreement with ZenRx pursuant to which the Company granted an exclusive, sublicensable license to use certain of our intellectual property to develop and commercialize Oratecan and Oraxol in Australia and New Zealand, and a non-exclusive license to manufacture a certain compound, but only for use in Oratecan and Oraxol. ZenRx is responsible for all development, manufacturing and commercialization, and the related costs and expenses, of any product candidates resulting from the agreement. No revenue was earned from this license agreement in the periods presented in these consolidated financial statements.             

d.

Certain family members of executives perform consulting services to the Company. Such services were not significant to the condensed consolidated financial statements.

 

11. Stock-Based Compensation

Common Stock Option Plans

The Company has four equity compensation plans, adopted in 2017, 2013, 2007 and 2004 (the “Plans”) which authorize the grant of up to 16,000,000 shares of common stock to employees, directors, and consultants. Additionally, on June 14, 2017, the Company adopted its 2017 Employee Stock Purchase Plan (the “ESPP”), which authorizes the issuance of up to 1,000,000 shares of common stock for future issuances to eligible employees.  

Stock Options

The total fair value of stock options vested and recorded as compensation expense during the three months ended March 31, 2019 and 2018  was $1.7 million and $2.2 million, respectively. As of March 31, 2019, $14.8 million of unrecognized cost related to non-vested stock options was expected to be recognized over a weighted-average period of approximately 1.7 years. The total intrinsic value of options exercised was approximately $0.4 million and $3.4 million for the three months ended March 31, 2019 and 2018, respectively.

The following table summarizes the status of the Company’s stock option activity granted under the Plans to employees, directors, and consultants (in thousands, except stock option amounts and exercise price):

 

 

 

Stock

Options

 

 

Weighted-

Average

Exercise price

 

 

Weighted-

Average

Remaining

Contractual

Term

 

 

Aggregate

Intrinsic Value

 

Outstanding at December 31, 2018

 

 

10,687,650

 

 

$

8.51

 

 

 

6.87

 

 

$

44,688

 

Granted

 

 

760,000

 

 

 

13.17

 

 

 

 

 

 

 

Exercised

 

 

(49,632

)

 

 

5.60

 

 

 

 

 

 

 

Forfeited and expired

 

 

(122,985

)

 

 

13.86

 

 

 

 

 

 

 

Outstanding at March 31, 2019

 

 

11,275,033

 

 

$

8.78

 

 

 

6.36

 

 

$

39,154

 

Vested and exercisable at March 31, 2019

 

 

8,153,661

 

 

$

6.88

 

 

 

5.45

 

 

$

43,787

 

 

The Company determines the fair value of stock-based awards on the grant date using the Black-Scholes option pricing model, which is impacted by assumptions regarding a number of highly subjective variables. The following table summarizes the weighted-average assumptions used as inputs to the Black-Scholes model during the periods indicated:

 

 

 

Three Months

Ended

 

 

Three Months

Ended

 

 

 

March 31,

2019

 

 

March 31,

2018

 

Weighted average grant date fair value

 

$

8.03

 

 

$

9.43

 

Expected dividend yield

 

 

%

 

 

%

Expected stock price volatility

 

 

64

%

 

 

59

%

Risk-free interest rate

 

 

2.63

%

 

 

2.57

%

Expected life of options (in years)

 

 

6.3

 

 

 

5.6

 

 

     

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