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)

6 Months Ended

Jun. 30, 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		1,007,491			11.39
Option grants		285,097			11.07
Option expired		(12,169	)		18.93
Option exercises		(10,000	)		3.00
Option forfeitures		(11,435	)		11.92

Balance, June 30, 2014		1,258,984			11.24

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:


	Six months ended June 30,
	2014			2013

Risk-free interest rates		1.81	%		1.16	%

Expected dividend yield		0	%		0	%

Expected life		5.9 years			5.8 years

Expected volatility		81.61	%		87.17	%

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 June 30,				Six Months Ended June 30,
(In thousands)	2014		2013		2014		2013
Research and development	$	495	$	415	$	942	$	727
General and administrative		521		440		1,074		876


Total share-based compensation	$	1,016	$	855	$	2,016	$	1,603

Summary of Restricted Stock Unit Award Activity

The following table summarizes our restricted stock unit award activity during the six months ended June 30, 2014:


	Stock Awards			Weighted- Average Grant Date Fair Value
	#			$
Outstanding January 1		356,589			12.06
Granted		766,300			6.72
Vested		(49,348	)		11.84
Forfeited or expired		(202,946	)		12.15

Outstanding June 30		870,595			7.35

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:


	Six Months Ended June 30,
	2014			2013
Risk-free interest rates		0.22	%		0.45	%
Expected dividend yield		0	%		0	%
Expected life		1.3 years			2.3 years
Expected volatility		93	%		44	%