SEC Filings

10-K
ARRAY BIOPHARMA INC filed this Form 10-K on 08/11/2017
Entire Document
 

The fair values of our non-employee option awards were estimated using the assumptions below, which yielded the following weighted average grant date fair value for the period presented:
 
Year Ended June 30,
 
 
2015
 
 
 
 
 
Risk-free interest rate
 
0.4% - 0.6%
 
Expected option term in years
 
1.25 - 2.00
 
Expected volatility
 
58.9% - 61.2%
 
Dividend yield
 
0%
 
Weighted average grant date fair value
 
$2.16
 

The following table summarizes our stock option activity under the Option and Incentive Plan for the year ended June 30, 2017:
 
Number of
Options
 
Weighted
Average
Exercise
Price
 
Weighted Average Remaining Contractual Term (in years)
 
Aggregate Intrinsic Value (in thousands)
Outstanding balance at June 30, 2016
11,647,595

 
$
4.80

 
 
 
 
Granted
4,062,240

 
$
7.91

 
 
 
 
Exercised
(487,895
)
 
$
4.39

 
 
 
 
Forfeited
(115,983
)
 
$
5.85

 
 
 
 
Expired
(261,929
)
 
$
9.66

 
 
 
 
Outstanding balance at June 30, 2017
14,844,028

 
$
5.57

 
7.4
 
$
44,036

Vested and expected to vest at June 30, 2017
7,064,938

 
$
4.74

 
5.9
 
$
25,887

Exercisable at June 30, 2017
7,064,938

 
$
4.74

 
5.9
 
$
25,887


The aggregate intrinsic value in the above table is calculated as the difference between the closing price of our common stock at June 30, 2017, of $8.37 per share and the exercise price of the stock options that had strike prices below the closing price. The total intrinsic value of all options exercised during the years ended June 30, 2017, 2016 and 2015 was $2.0 million, $0.7 million, and $2.3 million, respectively.

As of June 30, 2017, there was approximately $23.6 million of total unrecognized compensation expense related to the unvested stock options in the table above, which is expected to be recognized over a weighted average period of 2.9 years.

Restricted Stock Units ("RSUs")

The Option and Incentive Plan provides for the issuance of RSUs that each represent the right to receive one share of Array common stock, cash or a combination of cash and stock, typically following achievement of time- or performance-based vesting conditions. Our RSU grants that vest subject to continued service over a defined period of time, will typically vest between two to four years, with a percentage vesting on each anniversary date of the grant, or they may be vested in full on the date of grant. RSUs will be settled upon the vesting date, upon a predetermined delivery date, upon a change in control of Array, or upon the employee leaving Array. All outstanding RSUs may only be settled through the issuance of common stock to recipients, and we intend to continue to grant RSUs that may only be settled in stock. RSUs are assigned the value of Array common stock at date of grant issuance, and the grant date fair value is amortized over the applicable vesting period.


F-44