Attached files

file filename
EXCEL - IDEA: XBRL DOCUMENT - Raptor Pharmaceutical CorpFinancial_Report.xls
10-Q - FORM 10-Q - Raptor Pharmaceutical Corpd270609d10q.htm
XML - IDEA: XBRL DOCUMENT - Raptor Pharmaceutical CorpR8.htm
XML - IDEA: XBRL DOCUMENT - Raptor Pharmaceutical CorpR6.htm
XML - IDEA: XBRL DOCUMENT - Raptor Pharmaceutical CorpR2.htm
XML - IDEA: XBRL DOCUMENT - Raptor Pharmaceutical CorpR9.htm
XML - IDEA: XBRL DOCUMENT - Raptor Pharmaceutical CorpR3.htm
XML - IDEA: XBRL DOCUMENT - Raptor Pharmaceutical CorpR7.htm
XML - IDEA: XBRL DOCUMENT - Raptor Pharmaceutical CorpR1.htm
XML - IDEA: XBRL DOCUMENT - Raptor Pharmaceutical CorpR12.htm
XML - IDEA: XBRL DOCUMENT - Raptor Pharmaceutical CorpR18.htm
XML - IDEA: XBRL DOCUMENT - Raptor Pharmaceutical CorpR11.htm
XML - IDEA: XBRL DOCUMENT - Raptor Pharmaceutical CorpR17.htm
EX-32.1 - CERTIFICATION OF CHRISTOPHER M. STARR, PH.D. AND KIM R. TSUCHIMOTO - Raptor Pharmaceutical Corpd270609dex321.htm
EX-31.2 - CERTIFICATION OF KIM R. TSUCHIMOTO, CHIEF FINANCIAL OFFICER - Raptor Pharmaceutical Corpd270609dex312.htm
XML - IDEA: XBRL DOCUMENT - Raptor Pharmaceutical CorpR5.htm
XML - IDEA: XBRL DOCUMENT - Raptor Pharmaceutical CorpR13.htm
XML - IDEA: XBRL DOCUMENT - Raptor Pharmaceutical CorpR19.htm
XML - IDEA: XBRL DOCUMENT - Raptor Pharmaceutical CorpR10.htm
XML - IDEA: XBRL DOCUMENT - Raptor Pharmaceutical CorpR15.htm
XML - IDEA: XBRL DOCUMENT - Raptor Pharmaceutical CorpR16.htm
XML - IDEA: XBRL DOCUMENT - Raptor Pharmaceutical CorpR4.htm
EX-31.1 - CERTIFICATION OF CHRISTOPHER M. STARR, PH.D., CHIEF EXECUTIVE OFFICER - Raptor Pharmaceutical Corpd270609dex311.htm
v2.4.0.6
Stock Option Plans
3 Months Ended
Nov. 30, 2011
Stock Option Plans [Abstract]  
Stock Option Plans

(7) STOCK OPTION PLANS

Effective September 1, 2006, the Company began recording compensation expense associated with stock options and other forms of equity compensation in accordance with ASC 718. Prior to September 1, 2006, the Company accounted for stock options according to the provisions of APB Opinion No. 25, Accounting for Stock Issued to Employees, and related interpretations, and therefore no related compensation expense was recorded for awards granted with no intrinsic value. The Company adopted the modified prospective transition method provided for under ASC 718, and consequently has not retroactively adjusted results from prior periods. Under this transition method, compensation cost associated with stock options now includes: (i) quarterly amortization related to the remaining unvested portion of all stock option awards granted prior to September 1, 2006, based on the grant date value estimated in accordance with the original provisions of ASC 718; and (ii) quarterly amortization related to all stock option awards granted subsequent to September 1, 2006, based on the grant date fair value estimated in accordance with the provisions of ASC 718. In addition, the Company records consulting expense over the vesting period of stock options granted to consultants. The compensation expense for stock-based compensation awards includes an estimate for forfeitures and is recognized over the requisite service period of the options, which is typically the period over which the options vest, using the straight-line method. Employee stock-based compensation expense for the three month periods ended November 30, 2011 and 2010 and for the cumulative period from September 8, 2005 (inception) to November 30, 2011 was $916,738, $873,673 and $4,268,100, respectively, of which cumulatively $3,421,963 was included in general and administrative expense and $846,136 was included in research and development expense. No employee stock compensation costs were recognized for the period from September 8, 2005 (inception) to August 31, 2006, which was prior to the Company's adoption of ASC 718.

Stock-based compensation expense was based on the Black-Scholes option-pricing model assuming the following:

 

170 to 240 170 to 240 170 to 240

Period*

   Risk-free
interest rate
    Expected
life of  stock
option
   Annual
volatility
 
       

September 8, 2005 (inception) to August 31, 2006**

     5   10 years      100

Year ended August 31, 2007

     4 to 5   8 years      100

Year ended August 31, 2008

     2 to 3.75   8 years      109 to 128

Year ended August 31, 2009

     1.5 to 3.2   7 years      170 to 240

Year ended August 31, 2010

     2.1 to 3.1   6 to 7 years      55 to 245

Year ended August 31, 2011

     1.6 to 2.4   6 years      88 to 116

Three months ended November 30, 2011

     1.2   6 years      121

 

*

Dividend rate is 0% for all periods presented.

**

Stock-based compensation expense was recorded on the condensed consolidated statements of operations and statements of comprehensive loss commencing on the effective date of ASC 718, September 1, 2006. Prior to September 1, 2006, stock based compensation was reflected only in the footnotes to the condensed consolidated statements of operations, with no effect on the condensed consolidated statements of operations, per the guidelines of APB Opinion No. 25. Consultant stock-based compensation expense has been recorded on the condensed consolidated statements of operations and statements of comprehensive loss since inception.

 

If factors change and different assumptions are employed in the application of ASC 718, the compensation expense recorded in future periods may differ significantly from what was recorded in the current period.

The Company recognizes as an expense the fair value of options granted to persons who are neither employees nor directors. The fair value of expensed options was based on the Black-Scholes option-pricing model assuming the same factors shown in the stock-based compensation expense table above. Stock-based compensation expense for consultants for the three month periods ended November 30, 2011 and 2010 and for the cumulative period from September 8, 2005 (inception) to November 30, 2011 was, zero, $4,273 and $683,322, respectively, of which cumulatively $147,295 was included in general and administrative expense and $536,027 was included in research and development expense.

A summary of the activity in the 2010 Equity Incentive Plan, the 2006 Equity Compensation Plan, as amended and the Company's other stock option plans, is as follows:

 

     Option shares     Weighted-
average
exercise price
     Exercisable      Weighted-
average fair
value of options
granted
 

Outstanding at September 8, 2005

     —          —           —           —     

Granted

     580,108      $ 2.64         —         $ 2.47   

Exercised

     —          —           —           —     

Canceled

     —          —           —           —     
  

 

 

         

Outstanding at August 31, 2006

     580,108      $ 2.64         4,010       $ 2.47   

Granted

     107,452      $ 2.56         —         $ 2.31   

Exercised

     (3,381   $ 2.57         —         $ 2.40   

Canceled

     —          —           —           —     
  

 

 

         

Outstanding at August 31, 2007

     684,179      $ 2.63         273,236       $ 2.45   

Granted

     223,439      $ 2.27         —         $ 2.21   

Exercised

     —          —           —           —     

Canceled

     —          —           —           —     
  

 

 

         

Outstanding at August 31, 2008

     907,618      $ 2.54         600,837       $ 2.39   

Granted

     81,595      $ 1.13         —         $ 1.04   

Exercised

     —          —           —           —     

Canceled

     —          —           —           —     
  

 

 

         

Outstanding at August 31, 2009

     989,213      $ 2.42         826,303       $ 2.40   

Granted

     302,772      $ 2.29         160,605       $ 1.24   

Assumed in the 2009 Merger

     161,044      $ 114.12         158,475       $ 2.63   

Exercised

     (37,881   $ 1.69         —         $ 1.49   

Canceled

     (23,860   $ 142.42         —         $ 2.00   
  

 

 

         

Outstanding at August 31, 2010

     1,391,288      $ 14.25         1,089,248       $ 1.87   

Granted

     2,231,790      $ 3.39         834,624       $ 2.54   

Exercised

     (39,302   $ 2.44         —         $ 2.02   

Canceled

     (3,221   $ 1,088.33         —           —     
  

 

 

         

Outstanding at August 31, 2011

     3,580,555      $ 6.64         1,881,349       $ 2.30   

Granted

     2,119,905      $ 5.13         —         $ 4.45   

Exercised

     (17,485   $ 2.27         —         $ 1.97   

Canceled

     (477   $ 15.81         —         $ 0.05   
  

 

 

         

Outstanding at November 30, 2011

     5,682,498      $ 6.09         2,051,680       $ 3.14   
  

 

 

         

 

The weighted average intrinsic values of stock options outstanding and expected to vest and stock options exercisable as of November 30, 2011 and 2010 were $7,182,189, $4,296,907, $2,685,979 and $1,446,006, respectively (representing 5,682,498, 2,051,680, 3,140,866 and 1,424,005 shares, respectively).

There were 1,753,508 options available for grant as of November 30, 2011 under the 2010 Equity Incentive Plan, as amended (the "Plan"), which was approved by the Company's board of directors as of February 2, 2010 and approved by its stockholders on March 9, 2010. On April 7, 2011, the Company's stockholders passed amendments to the Plan which allow for an increase of the grant pool based upon 5% of the Company's common stock outstanding as of April 7, 2011, August 31, 2011 and August 31, 2012 up to an aggregate maximum increase of 6,000,000 shares. The April 7 and August 31, 2011, replenishments added 1,629,516 and 1,778,459 shares, respectively, available for grant under the Plan. The amendments also allow for 50% accelerated vesting of unvested stock options upon a change of control as defined in the Plan. In September 2011, the Company's board of directors approved an amended and restated form of award agreement under the Plan, which will be used for awards granted on or after September 22, 2011. The amended and restated award agreement, subject to the terms of any applicable employment agreement, extends the termination date of the awards granted under the Plan that are vested as of such termination date due to (a) an employee's or a non-employee director's retirement at age 62 or older which employee or non-employee director has at least five (5) years of continuous service with us prior to such retirement, (b) the termination of a non-employee director's board membership for reasons other than for cause or retirement and (c) an employee's or a non-employee director's death (during his or her continuous service with us or within 90 days' of such continuous service with us) or permanent disability, to eighteen (18) months from the date of termination of continuous service with the Company. No further grants will be made under any previous or assumed stock option plans. As of November 30, 2011, the options outstanding under all of the Company's stock option plans consisted of the following:

 

1,537,404 1,537,404 1,537,404 1,537,404 1,537,404
      Options outstanding      Options exercisable  

Range of exercise

prices

   Number of options
outstanding and
expected to vest
(#)
     Weighted-
average
remaining
contractual life
(yrs. )
     Weighted-
average
exercise
price ($)
     Number of
options
exercisable (#)
     Weighted-
average
exercise price

($)
 

$0 to $1.00

     34,969         7.38         0.85         22,583         0.85   

$1.01 to $2.00

     85,773         7.50         1.71         66,090         1.71   

$2.01 to $3.00

     1,537,404         6.75         2.65         1,052,447         2.58   

$3.01 to $4.00

     1,767,924         8.92         3.50         775,715         3.54   

$4.01 to $5.00

     88,214         8.03         4.70         86,536         4.71   

$5.01 to $6.00

     2,119,905         9.82         5.13         0         0.00   

$6.01 to $964.24

     48,309         3.44         266.76         48,309         266.76   
  

 

 

          

 

 

    
     5,682,498         8.59         6.09         2,051,680         9.21   
  

 

 

          

 

 

    

At November 30, 2011, the total unrecognized compensation cost was approximately $11.9 million. The weighted-average period over which it is expected to be recognized is 3.5 years.