Matinas BioPharma Holdings, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION

9 Months Ended

Sep. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE G - Stock Based Compensation

In August 2013, the Company adopted the 2013 Equity Compensation Plan (the “Plan”), which provides for the granting of incentive stock options, nonqualified stock options, restricted stock units, performance units, and stock purchase rights. Options under the Plan may be granted at prices not less than 100% of the fair value of the shares on the date of grant as determined by the Board Committee. The Board Committee determines the period over which the options become exercisable subject to certain restrictions as defined in the Plan, with the current outstanding options generally vesting over three years. The term of the options is no longer than ten years. The Company currently has reserved 9,541,706 shares of common stock for issuance under the plan.

With the approval of the Board of Directors and stockholders holding a majority of the shares outstanding, effective May 8, 2014, the Plan was amended and restated. The amendment provides for an automatic increase in the number of shares of Common Stock available for issuance under the Plan each January (with Board approval), commencing January 1, 2015 in an amount up to four percent (4%) of the total number of shares of Common Stock outstanding on the preceding December 31st.

The Company recognized stock-based compensation expense in its condensed consolidated statements of operations as follows ($ in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014

Research and development	$	122	$	223	$	410	$	330
General and administrative		372		677		818		1,117
Total	$	494	$	900	$	1,228	$	1,447

Stock Incentive Plans:

The following table contains information about the Company’s stock plan at September 30, 2015:

	Awards
	Reserved			Awards
	for	Awards		Available
	Issuance	Issued		for Grant
2013 Equity Compensation Plan	9,541,706	7,678,009	*	1,863,697

* includes both stock grants and option grants

The following table summarizes the Company’s stock option activity and related information for the period from December 31, 2014 to September 30, 2015:

		Weighted
	Number of	average
	Options	Exercise Price

Outstanding at December 31, 2014	5,353,417	$	1.05
Granted	1,998,888		.95
Exercised	-		-
Forfeited	(119,862)		.96
Canceled	(153,749)		.76
Outstanding at September 30, 2015	7,078,694	$	0.93

As of September 30, 2015, the number of vested shares underlying outstanding options was 3,848,937 at a weighted average exercise price of $1.01. The aggregate intrinsic value of in the-money options outstanding as of September 30, 2015 was $0.6 million. The aggregate intrinsic value is calculated as the difference between the Company’s closing stock price of $0.82 on September 30, 2015, and the exercise price of options, multiplied by the number of options. As of September 30, 2015, there was $2.0 million of total unrecognized share-based compensation. Such costs are expected to be recognized over a weighted average period of approximately 1.4 years.