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, 2013

The fair value of the stock options granted was estimated based on the following weighted average assumptions for three months ended March 31, 2013 and 2011:

	Three Months Ended March 31,
	2013			2012
Dividend yield		0	%		0	%
Expected volatility		92	%		92	%
Risk-free interest rate		0.78	%		1.05	%
Expected term	5.6 years			5.6 years

Stock option activity

Stock option activity for the three months ended March 31, 2013 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, 2012		6,788,383		$	8.99		7.36	$	1,531
Granted		994,053			2.92
Exercised		(19,090	)		1.97
Forfeited, expired or cancelled		(54,930	)		31.12
Options outstanding at March 31, 2013		7,708,416		$	8.07		7.54	$	4,502
Options exercisable at March 31, 2013		4,473,529		$	11.70		6.39	$	2,245

Unvested RSU activity

Unvested RSU activity for the three months ended March 31, 2013 is summarized below:

				Weighted-
	Number of			Average Grant-
	Shares			Date Fair Value
Unvested balance at December 31, 2012		1,459,853		$	2.75
Granted		895,860			2.87
Vested		(164,998	)		2.50
Forfeited		(4,835	)		2.06
Unvested balance at March 31, 2013		2,185,880		$	2.65

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, 2013 and 2012 (in thousands):

	Three Months Ended March 31,
	2013		2012
Research and development	$	997	$	385
Selling, general and administrative		622		289
Total stock-based compensation expense	$	1,619	$	674

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

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