Quarterly report pursuant to Section 13 or 15(d)

Common Stock

v2.4.0.6
Common Stock
 6 Months Ended
Jun. 30, 2012
Common Stock [Abstract]  
Common Stock

7. Common Stock

On June 27, 2012, the Company completed an underwritten public offering of 5,750,000 shares of our Common Stock, including 750,000 shares subject to an over-allotment option exercised by the underwriters, at a price of $5.00 per share for proceeds, net of underwriting commissions and other offering expenses, of approximately $26.5 million.

Stock-based Compensation Plans

As of June 30, 2012, the Company had two equity compensation plans, the Coronado Biosciences, Inc. 2007 Stock Incentive Plan, for employees, non-employees and outside directors and, subject to stockholder approval, the Coronado Biosciences, Inc. 2012 Employee Stock Purchase Plan (the “ESPP”). Although the ESPP is still subject to stockholder approval, eligible employees began to participate in the ESPP effective February 1, 2012.

Compensation Expense. The following table summarizes the stock-based compensation expense from awards, including stock options and restricted Common Stock awards to employees and non-employees, and warrants to non-employees for the six months ended June 30, 2012 and 2011, and from the period June 28, 2006 (date of inception) to date.

 

                         
    For the six months ended
June 30,		    

Period from

June 28, 2006

(date of

inception) to

June 30,

  
($ in thousands)   2012     2011     2012  

Employee awards

   $ 812     $ 238     $ 1,548  

Non-employee awards

     242       128       3,055  

Non-employee warrants

     164       164       489  
   

 

 

    

 

 

    

 

 

  

Total stock-based compensation expense

   $ 1,218     $ 530     $ 5,092  
   

 

 

    

 

 

    

 

 

  

 

The following table summarizes stock option activity:

 

                                 
    Outstanding Options     Weighted
Average
Remaining
Contractual
Life (in
years)		  
($ in thousands except per share amounts)   Number of
Shares		     Weighted
Average
Exercise
Price		     Total
Weighted
Average
Intrinsic
Value		    

At December 31, 2011

     1,814,070     $ 2.17     $ 7,852       9.2  

Options granted

     540,000       6.98                  

Options exercised

     —                            

Options cancelled

     —                            
   

 

 

                          

At June 30, 2012

     2,354,070     $ 3.27     $ 4,182       8.9  
   

 

 

                          

Options vested and expected to vest

     2,354,070     $ 3.27     $ 4,182       8.9  

Options vested and exercisable

     451,357     $ 1.68     $ 1,520       8.5  

As of June 30, 2012, the Company had unrecognized stock-based compensation expense related to unvested stock options and warrants granted to employees and non-employees of $5.7 million, which is expected to be recognized over the remaining weighted-average vesting period of 1.8 years.

2011 Special Dividend Declaration

In May 2011, the Company’s Board of Directors declared a dividend for an aggregate of 2,178,917 shares of Common Stock to the holders of Series A Convertible Preferred Stock (“Series A Shares”) in satisfaction of the Special Dividend that would have been due April 26, 2012. In connection with such issuance, the Company (i) eliminated the provision for a Series A Special Dividend on April 26, 2012 and (ii) amended the event that triggered an automatic conversion of Series A Shares into shares of Common Stock to be the effective date of a registration statement covering the resale of the underlying Common Stock. The Special Dividend was declared and paid in May 2011. The estimated fair value of the Common Stock was $5.9 million, or $2.69 per share.