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S-1
VITAE PHARMACEUTICALS, INC filed this Form S-1 on 08/12/2014
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Vitae Pharmaceuticals, Inc.

Notes to the Financial Statements (Continued)

For the Years Ended December 31, 2013 and 2012

9. Employee Compensation Plans (Continued)

        As of December 31, 2013, there was $24,397 of total unrecognized compensation expense, excluding performance-based stock options that have not been deemed probable, net of estimated forfeitures, related to unvested options granted under the Stock Plans. That expense is expected to be recognized as follows:

Year ending December 31,
   
 

2014

  $ 13,493  

2015

    7,043  

2016

    3,572  

2017

    289  
       

  $ 24,397  
       
       

        As of December 31, 2013, 4,170,000 of the performance-based stock options have been deemed probable and stock-based compensation expense recorded ratably over the completed service period associated with each performance condition. The aggregate estimated fair value of options for which the satisfaction of the related-performance conditions have not been deemed probable is $1,487,705 as of December 31, 2013.

        Subsequent to December 31, 2013 through the date of the issuance of these financial statements, the Company granted 7,912,279 stock options to certain employees and members of the board of directors at exercise prices ranging from $0.16 to $0.23 per share.

Restricted Stock Units

        During 2013, the Company awarded a performance-based Restricted Stock Unit ("RSU") covering 9,000,000 shares of common stock from the 2013 Plan. An RSU award entitles the holder to receive shares of the Company's common stock as the award vests. The performance-based RSU awarded in 2013 vests contingent upon the achievement of pre-determined performance-based milestones. Stock-based compensation expense is recognized when it is deemed probable that the performance-based goal will be met. The Board or its compensation committee determines if the performance conditions have been met. As of December 31, 2013, performance-based milestones on the RSU awarded in 2013 was not deemed probable. The fair value of the RSU is based on the fair market value of the Company's common stock on the date of grant. As of December 31, 2013, there was $1,440,000 of total unrecognized compensation expense related to the non-vested performance-based RSU awarded in 2013. The grant-date fair value of the RSU awarded during 2013 was $0.16.

10. Collaborative Research Agreements

Boehringer Ingelheim

Beta-site Amyloid Precursor Protein-cleaving Enzyme 1 (BACE) Inhibitors

        In June 2009, the Company entered into a Research Collaboration and License Agreement (the "BACE Agreement") with Boehringer Ingelheim International GmbH ("BI") pursuant to which BI is responsible for the development and commercialization of BACE inhibitors for the treatment of Alzheimer's Disease and other forms of dementia.

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