Achieve Life Sciences, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Common Stock (Tables)

Common Stock (Tables)

12 Months Ended

Dec. 31, 2013

The estimated fair value of stock options granted in the respective periods was determined using the Black-Scholes option pricing model using the following weighted average assumptions:


	2013			2012			2011
Risk-free interest rates		1.25	%		0.96	%		1.70	%
Expected dividend yield		0	%		0	%		0	%
Expected life		5.8 years			5.9 years			5.9 years
Expected volatility		86	%		95	%		76	%

Summary of Share-Based Compensation Expense

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


	Years ended December 31,
	2013		2012		2011
Research and development	$	1,296	$	899	$	509
General and administrative		1,538		1,276		679

Total stock-based compensation	$	2,834	$	2,175	$	1,188

Summary of Stock Options Activity

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


	Number of Optioned Common Shares			Weighted Average Exercise Price
Balance, January 1, 2011		744,913		$	8.74
Option grants		101,600			15.72
Option expired		(22,986	)		13.95
Option exercises		(56,228	)		3.88
Option forfeited		(971	)		41.91

Balance, December 31, 2011		766,328		$	9.82
Option grants		172,650			12.97
Option expired		(12,309	)		9.10
Option exercises		(117,347	)		3.94
Option forfeited		(4,541	)		15.26

Balance, December 31, 2012		804,781		$	11.34
Option grants		239,282			11.32
Option expired		(3,061	)		4.11
Option exercises		(3,475	)		3.00
Option forfeited		(30,536	)		13.87

Balance, December 31, 2013		1,006,991		$	11.39

Summary of Stock Options Outstanding Regarding Number of Ordinary Shares Issuable upon Exercise of Outstanding Options

(1) Number of ordinary shares issuable upon exercise of outstanding options:


Exercise Prices	Number of Options		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (in years)
$2.69—$2.85		34,000	$	2.69		1.82
$2.86—$4.83		229,125		3.00		2.00
$4.84—$11.94		98,879		9.30		7.78
$11.95—$11.99		171,271		11.95		9.19
$12.00—$12.81		37,175		12.42		8.12
$12.82—$13.06		114,400		13.00		8.35
$13.07—$15.74		46,676		14.18		7.58
$15.75—$16.40		120,750		15.97		6.95
$16.41—$21.67		79,115		17.91		5.67
$21.68—$22.28		75,600		22.28		5.92

Total		1,006,991	$	11.39		6.21

Summary of Stock Options Outstanding Regarding Number of Ordinary Shares Issuable upon Exercise of Vested Options

(2) Number of ordinary shares issuable upon exercise of vested options:


Exercise Prices	Number of Options		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (in years)
$2.69—$2.85		34,000	$	2.69		1.82
$2.86—$4.83		229,125		3.00		2.00
$4.84—$11.94		33,600		8.71		4.64
$11.95—$11.99		39,251		11.95		9.19
$12.00—$12.81		30,441		12.43		8.05
$12.82—$13.06		54,819		13.00		8.35
$13.07—$15.74		30,507		14.39		7.08
$15.75—$16.40		90,563		15.97		6.95
$16.41—$21.67		67,835		18.08		5.43
$21.68—$22.28		75,600		22.28		5.92

Total		685,741	$	10.95		5.00

Summary of Restricted Stock Unit Award Activity

The following table summarizes our restricted stock unit award activity during the years ended December 31, 2013, 2012 and 2011:


	2013					2012					2011
	Number of Shares			Weighted- Average Grant Date Fair Value		Number of Shares			Weighted- Average Grant Date Fair Value		Number of Shares		Weighted- Average Grant Date Fair Value
Outstanding at January 1		172,085		$	13.01		—		$	—		—	$	—
Granted		255,895			11.64		180,085			13.01		—		—
Vested		(50,773	)		12.95		—			—		—		—
Forfeited or expired		(20,618	)		12.51		(8,000	)		13.00		—		—

Outstanding at December 31		356,589			12.06		172,085			13.01		—		—

Summary of Fair Value of Warrants Issued

The estimated fair value of warrants issued is reassessed at each balance sheet date using the Black-Scholes option pricing model. The following assumptions were used to value the warrants on the following year end balance sheet dates:


	Years ended December 31,
	2013			2012			2011
Risk-free interest rates		0.33	%		0.34	%		0.55	%
Expected dividend yield		0	%		0	%		0	%
Expected life		1.8 years			2.8 years			3.8 years
Expected volatility		39	%		45	%		76	%

Computation of Basic and Diluted Net Loss Attributable to Common Shareholders Per Share

The following table presents the computation of basic and diluted net loss attributable to common stockholders per share (in thousands, except per share and share amounts):


	Years ended December 31,
	2013			2012			2011
Numerator
Net loss	$	(31,849	)	$	(21,098	)	$	(14,673	)
Denominator
Weighted average number of common shares outstanding		14,683,389			13,522,723			9,729,340
Basic and diluted net loss per common share	$	(2.17	)	$	(1.56	)	$	(1.51	)