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SEC Filings

VITAE PHARMACEUTICALS, INC filed this Form S-1 on 08/12/2014
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Stock-Based Compensation

        We account for stock-based compensation expense in accordance with the provisions of ASC 718, Compensation—Stock Compensation, which addresses the accounting for share-based payment transactions in which an enterprise receives employee services in exchange for (a) equity instruments of the enterprise or (b) liabilities that are based on the fair value of or may be settled by the issuance of the enterprise's equity instruments. ASC 718 requires that we measure the cost of equity-based service awards based on the grant-date fair value of the award, net of estimated forfeitures, and recognize the cost of such awards over the period during which the employee is required to provide service in exchange for the award (the vesting period) on a straight-line basis.

        We issue both performance-based stock options and performance-based restricted stock units, or RSUs. Stock-based compensation expense is recognized beginning when it is deemed probable that the performance-based goal will be met, as determined by our board of directors.

        Stock-based compensation expense recognized in accordance with ASC 718 for the years ended December 31, 2013 and 2012 and the six months ended June 30, 2014 and 2013:

  Year Ended
December 31,
  Six Months
June 30,
  2013   2012   2014   2013  
  (in thousands)
  (in thousands)

Research and development

    $  19     $115     $    7     $  9  

General and administrative

    81     166     105     48  

Total stock-based compensation

    $100     $281     $112     $57  

        As of June 30, 2014, there was $1.2 million of total unrecognized compensation expense, excluding performance-based stock options for which vesting has not been deemed probable, net of estimated forfeitures, related to unvested options granted under our 2013 Stock Plan, 2004 Stock Plan and 2001 Stock Plan. That expense is expected to be recognized as follows:

Year ending December 31,
  (in thousands)


  $ 158  









  $ 1,193  

        We expect to continue to grant stock options, and potentially other forms of equity awards, in the future, and to the extent that we do, our actual stock-based compensation expense recognized in future periods will likely increase.

        The intrinsic value of all outstanding options as of June 30, 2014 was approximately $       million, based on an assumed initial public offering price of $       per share, which is the midpoint of the price range on the cover page of this prospectus, of which approximately $       million related to vested options and approximately $      related to unvested options.

    Determining Fair Value of Stock-Based Awards

        We apply the fair value recognition provisions of ASC 718. Determining the amount of share-based compensation to be recorded requires us to develop estimates of the fair value of stock options as of their