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)

3 Months Ended

Mar. 31, 2014

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, 2013		1,006,991			11.39
Option grants		260,097			11.79
Option expired		—			—
Option exercises		(10,000	)		3.00
Option forfeitures		—			—

Balance, March 31, 2014		1,257,088			11.47

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:


	Three months ended March 31,
	2014			2013

Risk-free interest rates		1.82	%		1.12	%

Expected dividend yield		0	%		0	%

Expected life		5.9 years			5.9 years

Expected volatility		81	%		88	%

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 March 31,
(In thousands)	2014		2013
Research and development	$	447	$	312
General and administrative		553		436


Total share-based compensation	$	1,000	$	748

Summary of Restricted Stock Unit Award Activity

The following table summarizes our restricted stock unit award activity during the three months ended March 31, 2014:


	Stock Awards			Weighted- Average Grant Date Fair Value
	#			$
Outstanding January 1		356,589			12.06
Granted		294,300			11.79
Vested		(34,585	)		12.38
Forfeited or expired		(59,155	)		13.03

Outstanding March 31		557,149			11.79

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 balance sheet dates:


	Three Months Ended March 31,
	2014			2013

Risk-free interest rates		0.30	%		0.31	%

Expected dividend yield		0	%		0	%

Expected life		1.6 years			2.6 years

Expected volatility		41	%		44	%