Achieve Life Sciences, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Common Stock (Tables)

Common Stock (Tables)

9 Months Ended

Sep. 30, 2013

Stock option transactions and the number of stock options outstanding are summarized below:


	Number of Optioned Common Shares			Weighted Average Exercise Price
	#			$
Balance, December 31, 2012		804,781			11.34
Option grants		209,282			11.81
Option expirations		(3,061	)		4.11
Option exercises		(3,475	)		3.00
Option forfeitures		(21,911	)		14.30

Balance, September 30, 2013		985,616			11.42

Summary of Fair Value of Option Awards

The fair value of each stock award for employees and directors is estimated on the grant date and for consultants at each reporting period, using the Black-Scholes option-pricing model based on the weighted-average assumptions noted in the following table:


	Nine months ended September 30,
	2013			2012

Risk-free interest rates		1.15	%		0.96	%

Expected dividend yield		0	%		0	%

Expected life		5.8 years			6.0 years

Expected volatility		87.02	%		95.47	%

Summary of Share-Based Compensation Expense for Stock Options and Restricted Stock

The results for the periods set forth below included share-based compensation expense for stock options and restricted stock units in the following expense categories of the consolidated statements of loss (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2013		2012		2013		2012
	$		$		$		$
Research and development		410		243		1,137		671
General and administrative		477		338		1,353		939


Total share-based compensation		887		581		2,490		1,610

Summary of Restricted Stock Unit Award Activity

The following table summarizes our restricted stock unit award activity during the nine months ended September 30, 2013:


	2013
	Stock Awards			Weighted- Average Grant Date Fair Value
	#			$
Outstanding January 1		172,035			13.01
Granted		240,895			11.89
Vested		(49,799	)		12.96
Forfeited or expired		(10,818	)		12.91

Outstanding September 30		352,313			12.25

Summary of Fair Value of Warrants Issued

The following assumptions were used to value the warrants on the following balance sheet dates:


	Nine Months Ended September 30,
	2013			2012

Risk-free interest rates		0.36	%		0.32	%

Expected dividend yield		0	%		0	%

Expected life		2.06 years			3.06 years

Expected volatility		40.66	%		50.67	%