Stockholders' Equity
 9 Months Ended
Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stockholders' Equity
Stockholders' Equity
On July 10, 2014 the Company completed an underwritten public offering of its common stock in which 4,200,000 shares of common stock were sold by the Company. The aggregate gross proceeds from the offering were $25.2 million. After deducting underwriters' discounts and commissions and offering expense, the aggregate net proceeds received by the Company totaled approximately $23.4 million. The Company expects to use the net proceeds from the offering to continue its clinical development of OCR-002 and for working capital and other general corporate purposes.
Stock Based Compensation
The Company’s stock option activity and related information for the nine months ended September 30, 2014 was as follows (in thousands, except share and per share data):
 
 
 
 
 
 
 
Weighted-avg.
 
 
 
 Shares
 
 
 
 Weighted-avg.
 
Remaining
 
Aggregate
 
 Available
 
 Stock Options
 
 Exercise Price
 
Contractual
 
Intrinsic
 
 for Grant
 
 Outstanding
 
 Per Share
 
Life (in Years)
 
Value
 
 
 
 
 
 
 
 
 
 
 Balance at December 31, 2013
762,867

 
1,909,769

 
$
8.77

 
8.58
 
$
11,818

 Stock options granted
(894,000
)
 
894,000

 
$
7.44

 
 
 
 
 Stock options cancelled
364,551

 
(364,551
)
 
$
15.05

 
 
 
 
 Stock options exercised
—

 
(243,824
)
 
$
1.72

 
 
 
 
 Balance at September 30, 2014
233,418

 
2,195,394

 
$
7.97

 
9.16
 
$
547

 
 
 
 
 
 
 
 
 
 
At September 30, 2014:
 
 
 
 
 
 
 
 
 
    Vested and expected to vest
 
 
2,114,917

 
$
7.98

 
9.14
 
$
547

    Exercisable
 
 
484,723

 
$
9.16

 
7.95
 
$
547


The aggregate intrinsic value of options exercised under all option plans was $2.7 million and $44,000 for the nine months ended September 30, 2014 and 2013, respectively, determined as of the date of option exercise.
The Company recognized stock based compensation expense as follows (in thousands):
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2014
 
2013
 
2014
 
2013
Research and development
$
528

 
$
2

 
$
1,359

 
$
6

General and administrative
921

 
200

 
2,342

 
228

Total
$
1,449

 
$
202

 
$
3,701

 
$
234

As of September 30, 2014, there were unrecognized compensation costs of $13.4 million related to stock options and the Company expects to recognize those costs over a weighted average period of 3.10 years.
Stock-based compensation cost for stock options is estimated at the grant date based on the fair-value using the Black-Scholes option pricing model. The fair value of employee stock options is being amortized on a straight-line basis over the requisite service period of the awards. The fair value of employee stock options was estimated using the following weighted-average assumptions:
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2014
 
2013
 
2014
 
2013
Risk-free interest rates
 
1.85% - 2.00%
 
—
 
1.85% - 2.01%
 
—
Expected life in years
 
6.08
 
—
 
6.08
 
—
Expected dividend yield
 
—
 
—
 
—
 
—
Expected volatility
 
97%
 
—
 
97% - 102%
 
—