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SEC Filings

10-K
SERES THERAPEUTICS, INC. filed this Form 10-K on 03/06/2019
Entire Document
 

 

SERES THERAPEUTICS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except share and per share data)

 

 

Stock Option Valuation

The assumptions that the Company used to determine the fair value of the stock options granted to employees and directors were as follows, presented on a weighted average basis:

 

 

 

Year Ended December 31,

 

 

 

2018

 

 

2017

 

 

2016

 

Risk-free interest rate

 

 

2.39

%

 

 

2.20

%

 

 

1.54

%

Expected term (in years)

 

 

6.0

 

 

 

6.0

 

 

 

6.0

 

Expected volatility

 

 

76.0

%

 

 

80.9

%

 

 

84.2

%

Expected dividend yield

 

 

0

%

 

 

0

%

 

 

0

%

 

Stock Options

The following table summarizes the Company’s stock option activity for the twelve months ended December 31, 2018:

 

 

 

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

 

 

2,074,776

 

 

 

9.67

 

 

 

 

 

 

 

 

 

Exercised

 

 

(212,240

)

 

 

0.69

 

 

 

 

 

 

 

 

 

Forfeited

 

 

(426,509

)

 

 

15.99

 

 

 

 

 

 

 

 

 

Outstanding as of December 31, 2018

 

 

7,561,719

 

 

$

12.26

 

 

 

7.23

 

 

$

4,958

 

Options vested and expected to vest as of December 31, 2018

 

 

7,561,719

 

 

$

12.26

 

 

 

7.23

 

 

$

4,958

 

Options exercisable as of December 31, 2018

 

 

4,386,848

 

 

$

12.56

 

 

 

6.21

 

 

$

4,958

 

 

The weighted average grant-date fair value of stock options granted during the years ended December 31, 2018, 2017 and 2016 was $6.53, $7.07, and $18.45 per share, respectively. The total intrinsic value of stock options exercised during the years ended December 31, 2018, 2017, and 2016 was $1,801, $1,912, and $34,871.

The aggregate intrinsic value of stock options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock for those stock options that had exercise prices lower than the fair value of the Company’s common stock.

The Company granted performance-based stock options to certain employees. These stock options were exercisable only upon achievement of specified performance targets. During the year ended December 31, 2016, the Company determined that the achievement of specified performance targets occurred. Upon achievement of the performance targets, 60,000 options became immediately vested.  The Company recorded stock-based compensation expense of $235 during the year ended December 31, 2016 related to these awards. The grant date fair value of these awards was $3.92 per share.    

As of December 31, 2018 and 2017, there were outstanding unvested service-based stock options held by non-employees for the purchase of 193,282 and 45,000 shares, respectively, of common stock.

F-20



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