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Note 11 - Stock-based Compensation
9 Months Ended
Sep. 30, 2022
Notes to Financial Statements  
Share-Based Payment Arrangement [Text Block]

11.

Stock-based Compensation

 

2016 Omnibus Incentive Plan

 

The Panbela Therapeutics, Inc. 2016 Omnibus Incentive Plan (the “2016 Plan”) was originally adopted by our Board of Directors (the “Board”) and approved by our stockholders in 2016 and was later amended and restated by the Board and ratified by our stockholders in 2020. The 2016 Plan permits the granting of incentive and non-statutory stock options, restricted stock, stock appreciation rights, performance units, performance shares and other stock awards to eligible employees, directors and consultants. We grant options to purchase shares of common stock under the 2016 Plan at no less than the fair market value of the underlying common stock as of the date of grant. Options granted under the 2016 Plan have a maximum term of ten years. The 2016 Plan provides for increases in the number of shares available for awards under the plan on January 1 of each year beginning in 2021 and ending in 2025 in an amount equal to the lesser of (i) 20% of the total number of fully diluted shares (as defined in the 2016 Plan) as of December 31 in the immediately preceding calendar year and (ii) such lesser number of shares as may be determined by the Board. The shares available for issuance under the 2016 Plan may be treasury shares or authorized but unissued shares. As of September 30, 2022, options to purchase 2,220,136 shares of common stock, each representing the right to acquire one share of common stock, were outstanding under the 2016 Plan, with a weighted average exercise price of $6.04 per share, and the average remaining contractual life was approximately 6.7 years. As of the same date, 2,019,776 shares remained available for future awards.

 

2011 Stock Option Plan

 

Our Board ceased making awards under the Panbela Therapeutics, Inc. 2011 Stock Option Plan (the “2011 Plan”) upon the original receipt of stockholder approval for the 2016 Plan. Awards outstanding under the 2011 Plan remain outstanding in accordance with and pursuant to the terms thereof. As of September 30, 2022, options to purchase 224,000 shares of common stock remained outstanding under the 2011 Plan, with a weighted average exercise price of $2.97 per share, and the average remaining contractual life was approximately 2.2 years.

 

CPPs 2010 Equity Incentive Plan

 

As a result of the Mergers, the Company has assumed all remaining rights and obligations with respect to CPP’s 2010 Equity Incentive Plan (the “CPP Plan”) through the issuance of replacement options. As of September 30, 2022, options to purchase 1,578,983 shares of common stock remained outstanding under the CPP Plan, with a weighted average exercise price of $0.35 per share, and the average remaining contractual life was 7.4 years.

 

Stock-based Compensation Expense

 

General and administrative (“G&A”) and research and development expenses include non-cash stock-based compensation expense as a result of our issuance of stock options. The terms and vesting schedules for stock-based awards vary by type of grant and the employment status of the grantee. The awards granted through September 30, 2022 are scheduled to vest based upon time-based and performance conditions. There was approximately $2.0 million unamortized stock-based compensation expense related to options granted to employees, directors and consultants as of September 30, 2022 which is expected to be recognized over the next 1.8 years.

 

Stock-based compensation expense for each of the periods presented is as follows (in thousands):

 

  

Nine Months Ended September 30,

 
  

2022

  

2021

 

General and Administrative

 $697  $798 

Research and Development

  160   153 
  $857  $951 

 

Details of options, granted, exercised, cancelled or forfeited during the nine months ended September 30, 2022 follows:

 

  

Shares Underlying

Options

  

Weighted Average

Exercise Price Per

Share

  

Aggregate

Intrinsic Value

 

Balance at January 1, 2022

  2,463,636  $5.76  $8,821 

Granted in connection with merger

  1,596,754   0.35     

Exercised

  (17,771)  0.22     

Cancelled

  -   -     

Forfeitures or expirations

  (19,500)  14.07     

Balance at September 30, 2022

  4,023,119  $3.64  $70,506 

 

Information about stock options outstanding, vested and expected to vest as of September 30, 2022, is as follows:

 

      

Outstanding, Vested and Expected to Vest

  

Options Vested and Exercisable

 

Per Share Exercise Price

  

Shares

  

Weighted Average

Remaining

Contractual Life

(Years)

  

Weighted Average

Exercise Price

  

Options

Exercisable

  

Weighted

Average

Remaining

Contractual Life

(Years)

 
                         
$0.22-

$1.47

    1,592,983   7.37  $0.358   1,592,983   7.37 
$2.26-

$2.50

    79,225   6.87  $2.310   41,075   4.93 
2.95-

$4.17

    1,207,940   6.70  $3.410   959,606   6.23 
$4.50-

$8.10

    687,100   5.94  $6.134   649,600   5.84 
$9.99-

$10.10

    262,048   7.30  $9.992   209,036   7.18 
$15.10      193,823   4.20  $15.100   193,823   4.20 
Totals 

 

    4,023,119   6.88  $3.637   3,646,123   6.59