XOMA Royalty Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Stock-based Compensation (Tables)

Stock-based Compensation (Tables)

3 Months Ended

Mar. 31, 2014

The fair value of the stock options granted was estimated based on the following weighted average assumptions for three months ended March 31, 2014 and 2013:

	Three Months Ended March 31,
	2014			2013
Dividend yield		0	%		0	%
Expected volatility		94	%		92	%
Risk-free interest rate		1.73	%		0.78	%
Expected term	5.6 years			5.6 years

Stock option activity

Stock option activity for the three months ended March 31, 2014 was as follows:

	Options			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value (in thousands)
Options outstanding at December 31, 2013		7,218,241		$	8.42		6.75	$	18,213
Granted		1,099,239			8.56
Exercised		(640,649	)		4.72
Forfeited, expired or cancelled		(116,766	)		24.72
Options outstanding at March 31, 2014		7,560,065		$	8.50		7.14	$	9,892
Options exercisable at March 31, 2014		4,562,868		$	10.85		5.95	$	5,422

Unvested RSU activity

Unvested RSU activity for the three months ended March 31, 2014 is summarized below:

				Weighted-
	Number of			Average Grant-
	Shares			Date Fair Value
Unvested balance at December 31, 2013		1,738,037		$	2.73
Granted		972,614			8.64
Vested		(478,845	)		4.16
Forfeited		(77,536	)		2.82
Unvested balance at March 31, 2014		2,154,270		$	5.08

Stock-based compensation expense

The following table shows total stock-based compensation expense included in the condensed consolidated statements of comprehensive loss for the three months ended March 31, 2014 and 2013 (in thousands):

	Three Months Ended March 31,
	2014		2013
Research and development	$	2,406	$	997
Selling, general and administrative		1,518		622
Total stock-based compensation expense	$	3,924	$	1,619