Total share-based compensation related to stock options, common stock awards, warrants and Joint Share Ownership Plan awards was $2.1 million and $0.2 million for the three months ended September 30, 2015 and 2014, respectively, and $2.3 million and $0.7 million for the nine months ended September 30, 2015 and 2014, respectively.

Share-based compensation expense is classified in the condensed consolidated statements of comprehensive loss as follows:

Stock Option Modification

During the three months ended September 30, 2015, the Company modified several employee stock option awards. The modification extends the expiry dates of 688,408 stock options through March 31, 2016. The Company accounted for the option modification under ASC Topic 718, Compensation – Stock Compensation, and as a result, recognized $25,008 in incremental compensation expense during the three months ended September 30, 2015.

Employee Stock Options

During the three and nine months ended September 30, 2015 and 2014, 16.3 million and 100,000 total stock options to purchase shares of common stock were granted under the Xenetic Biosciences, Inc. Equity Incentive Plan (the “Stock Plan”), respectively. The options granted during the three and nine months ended September 30, 2015 and 2014 have a weighted average grant date fair value per option share of $0.28 and $0.56, respectively. There were no employee stock option exercises during the nine months ended September 30, 2015. During the nine months ended September 30, 2014, a named executive of the Company exercised 1,984,080 stock options. Cash received from stock option exercise was $101,933. The Company recognized compensation expense related to employee stock options of $1,412,992 and $92,108 during the three months ended September 30, 2015 and 2014, respectively, and $1,497,295 and $117,007 during the nine months ended September 30, 2015 and 2014, respectively.

Non-Employee Stock Options

During the three and nine months ended September 30, 2015 and 2014, 1.0 million and zero total stock options to purchase shares of common stock were granted under the Stock Plan to non-employees, respectively. The options granted during the three and nine months ended September 30, 2015 have a grant date fair value of $0.40. No non-employee stock options were exercised during the nine months ended September 30, 2015 or 2014. The Company recognized compensation expense related to non-employee stock options of $177,351 and $128,650 during the three months ended September 30, 2015 and 2014, respectively, and $186,544 and $140,096 during the nine months ended September 30, 2015 and 2014, respectively.

Common stock awards

The Company granted 371,292 and 37,218 common stock awards to non-employees during the three months ended September 30, 2015 and 2014, respectively, and 605,580 and 104,637 common stock awards to non-employees during the nine months ended September 30, 2015 and 2014, respectively. The Company measures the fair value of these awards using the fair value of the services provided, if available, as it is a more reliable measure of the fair value of the awards. If the Company is unable to determine the fair value of the services provided, the Company calculates the fair value of the awards based on the average stock price during the period in which performance of services is complete. The Company recognized compensation expense related to common stock awards of $116,045 and $25,500 during the three month periods ended September 30, 2015 and 2014, respectively, and $167,045 and $76,500 during the nine month periods ended September 30, 2015 and 2014, respectively. During the three and nine months ended September 30, 2015 and 2014, 527,535 and zero common stock award shares were issued, respectively. As of September 30, 2015 and 2014, 725,567 and 564,753 common stock awards were authorized but not issued, respectively.