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SEC Filings

10-Q
SERES THERAPEUTICS, INC. filed this Form 10-Q on 11/08/2018
Entire Document
 

7.

Stockholders’ Equity Common Stock

Stock Options

The following table summarizes the Company’s stock option activity since December 31, 2017:

 

 

 

Number

of Shares

 

 

Weighted

Average

Exercise

Price

 

 

Weighted

Average

Remaining

Contractual

Term

 

 

Aggregate

Intrinsic

Value

 

 

 

 

 

 

 

 

 

 

 

(in years)

 

 

 

 

 

Outstanding as of December 31, 2017

 

 

6,125,692

 

 

$

13.00

 

 

 

7.70

 

 

$

15,808

 

Granted

 

 

1,820,776

 

 

 

10.08

 

 

 

 

 

 

 

 

 

Exercised

 

 

(196,508

)

 

 

0.69

 

 

 

 

 

 

 

 

 

Forfeited

 

 

(305,920

)

 

 

16.96

 

 

 

 

 

 

 

 

 

Outstanding as of September 30, 2018

 

 

7,444,040

 

 

$

12.45

 

 

 

7.55

 

 

$

9,360,614

 

Options vested and expected to vest as of September

   30, 2018

 

 

7,444,040

 

 

 

12.45

 

 

 

7.55

 

 

 

9,360,614

 

Options exercisable as of September 30, 2018

 

 

4,176,275

 

 

$

12.23

 

 

 

6.61

 

 

$

9,357,014

 

 

The weighted average grant-date fair value of stock options granted during the three and nine months ended September 30, 2018 and 2017 was $5.67, $6.83, $8.43 and $7.06 per share, respectively.

Restricted Stock Units

The Company has granted restricted stock units with time-based vesting conditions.  The table below summarizes the Company’s restricted stock unit activity since December 31, 2017:

 

 

 

Number

of Shares

 

 

Weighted

Average Grant

Date Fair

Value

 

Unvested restricted stock units as of December 31, 2017

 

 

356,778

 

 

$

10.01

 

Granted

 

 

2,000

 

 

$

7.43

 

Forfeited

 

 

(7,370

)

 

$

9.78

 

Vested

 

 

(61,500

)

 

$

10.12

 

Unvested restricted stock units as of September 30, 2018

 

 

289,908

 

 

$

9.98

 

 

Stock-based Compensation Expense

The Company recorded stock-based compensation expense related to stock options, restricted stock units and the Company’s Employee Stock purchase Plan (“ESPP”) in the following expense categories of its condensed consolidated statements of operations and comprehensive loss:

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Research and development expenses

$

2,246

 

 

$

2,158

 

 

$

6,436

 

 

$

6,124

 

General and administrative expenses

 

2,071

 

 

 

2,211

 

 

 

6,451

 

 

 

7,026

 

 

$

4,317

 

 

$

4,369

 

 

$

12,887

 

 

$

13,150

 

 

 

Employee Stock Purchase Plan

 

The ESPP provides that eligible employees may contribute up to 15% of their eligible earnings toward the semi-annual purchase of the Company' common stock. The ESPP is qualified under Section 423 of the Internal Revenue Code. The employee's purchase price is derived from a formula based on the closing price of the common stock on the first day of the offering period versus the closing price on the date of purchase (or, if not a trading day, on the immediately preceding trading day).  The offering period under the ESPP has a duration of six months, and the purchase price with respect to each offering period beginning on or after such date is, until otherwise amended, equal to 85% of the lesser of (i) the fair market value of the Company's common stock at the commencement

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