| Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions |
The material factors incorporated in the Black-Scholes model in estimating the fair value of the options granted or re-measured under the Private Innovate Plan for the periods presented were as follows: | | | | | | | | | | | Three Months Ended
September 30, | | Nine Months Ended
September 30, | | | 2018 | 2017 | | 2018 | | 2017 | Expected dividend yield | | 0% | 0% | | 0% | | 0% | Expected stock-price volatility | | 66% – 68% | 62% | | 66% – 72% | | 73% | Risk-free interest rate | | 2.8% – 3.0% | 1.6% | | 2.7% – 3.0% | | 2.2% | Expected term of options | | 8.5 – 9.1 | 6.5 | | 8.5 – 9.5 | | 8.7 |
The material factors incorporated in the Black-Scholes model in estimating the fair value of the options granted or re-measured under the Amended Omnibus Plan for the periods presented were as follows: | | | | | | | | | Three Months Ended
September 30, | | Nine Months Ended
September 30, | | | 2018 | | 2018 | | Expected dividend yield | | 0% | | 0% | | Expected stock-price volatility | | 65% – 73% | | 65% – 73% | | Risk-free interest rate | | 2.8% – 3.1% | | 2.8% – 3.1% | | Expected term of options | | 5.0 – 10.0 | | 5.0 – 10.0 | |
|
| Share-based Compensation, Activity |
The following table summarizes stock option activity under the Amended Omnibus Plan: | | | | | | | | | | | | | | | | | | Number of Shares | | Weighted-Average Exercise Price | | Aggregate Intrinsic Value | | Weighted-Average Remaining Contractual Life (in years) | Outstanding at December 31, 2017 | | 1,683 |
| | $ | 45.00 |
| | $ | — |
| | 9.04 |
| Options granted | | 1,202,843 |
| | 6.12 |
| | — |
| | 9.82 |
| Options forfeited | | — |
| | — |
| | — |
| | — |
| Options exercised | | — |
| | — |
| | — |
| | — |
| Outstanding at September 30, 2018 | | 1,204,526 |
| | 6.17 |
| | 869,003 |
| | 9.82 |
| Exercisable at September 30, 2018 | | 270,676 |
| | 6.43 |
| | 175,359 |
| | 9.40 |
| Vested and expected to vest at September 30, 2018 | | 1,126,051 |
| | $ | 6.18 |
| | $ | 809,494 |
| | 9.82 |
|
The following table summarizes stock option activity under the Private Innovate Plan: | | | | | | | | | | | | | | | | | | Number of Shares | | Weighted-Average Exercise Price | | Aggregate Intrinsic Value | | Weighted-Average Remaining Contractual Life (in years) | Outstanding at December 31, 2017 | | 6,843,296 |
| | $ | 1.56 |
| | $ | 6,617,433 |
| | 9.04 |
| Options granted | | — |
| | — |
| | — |
| | — |
| Options forfeited | | (414,719 | ) | | 2.08 |
| | — |
| | — |
| Options exercised | | — |
| | — |
| | — |
| | — |
| Outstanding at September 30, 2018 | | 6,428,577 |
| | 1.53 |
| | 34,080,300 |
| | 7.99 |
| Exercisable at September 30, 2018 | | 5,534,191 |
| | 1.44 |
| | 29,819,823 |
| | 7.90 |
| Vested and expected to vest at September 30, 2018 | | 6,378,011 |
| | $ | 1.52 |
| | $ | 33,841,611 |
| | 7.98 |
|
|
| Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs |
Share-based compensation expense recognized in the Company’s financial statements was as follows: | | | | | | | | | | | | | | | | | | | | Three Months Ended
September 30, | | Nine Months Ended
September 30, | | | 2018 | | 2017 | | 2018 | | 2017 | Research and development | | $ | (2,950,000 | ) | | $ | 314,206 |
| | $ | 2,467,000 |
| | $ | 1,627,606 |
| General and administrative | | (181,000 | ) | | 962,728 |
| | 2,588,000 |
| | 3,122,228 |
| Total share-based compensation | | $ | (3,131,000 | ) | | $ | 1,276,934 |
| | $ | 5,055,000 |
|
| $ | 4,749,834 |
| | | | | | | | | |
|