Share-Based Compensation

9 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Share-Based Compensation

7. Share-Based Compensation

In April 2020, the Company adopted the 2020 Omnibus Equity Incentive Plan (the “Plan”). On January 1, 2024, the total number of shares authorized under the Plan increased to 137,260. There was one share available for issuance under the Plan as of June 30, 2024. The Plan increases the amount of shares issuable under the Plan by four percent of the outstanding shares of common stock at each January 1, each year. The Plan permits the granting of share-based awards, including stock options, restricted stock units and awards, stock appreciation rights and other types of awards as deemed appropriate, in each case, in accordance with the terms of the Plan. The terms of the awards are determined by the Company’s Board of Directors.

Restricted stock units and awards

On January 1, 2024, 73,440 restricted stock units (“RSUs”) and 63,819 restricted stock awards (“RSAs”) were granted, 100% of which vest on January 1, 2025. Any unvested RSUs or RSAs will be forfeited upon termination of services. The fair value of an RSU or RSA is equal to the fair market value of the Company’s common stock on the date of grant. RSU and RSA expense is amortized straight-line over the vesting period.

The Company recorded share-based compensation expense associated with the RSUs and RSAs in its accompanying unaudited interim consolidated statements of operations as follows:

	Three Months Ended June 30,				Nine Months Ended June 30,
	2024		2023		2024		2023
Research and development	$	28,268	$	24,554	$	81,089	$	102,807
General and administrative		32,127		25,451		89,706		95,813
	$	60,395	$	50,005	$	170,795	$	198,620

The following table summarizes RSU activity under the Plan:

				Weighted
				Average Grant
	RSU			Date Fair Value
Unvested balance at October 1, 2023		2,326		$	21.78
Granted		73,440		$	1.76
Vested		(2,326	)	$	21.78
Unvested balance at June 30, 2024		73,440		$	1.76

As of June 30, 2024, total unrecognized compensation expense relating to unvested RSUs granted was $0.1 million which is expected to be recognized over a weighted-average period of 0.5 years.

The following table summarizes RSA activity under the Plan:

				Weighted
				Average Grant
	RSA			Date Fair Value
Unvested balance at October 1, 2023		5,514		$	28.27
Granted		63,819		$	1.76
Vested		(5,514	)	$	28.27
Unvested balance at June 30, 2024		63,819		$	1.76

As of June 30, 2024, total unrecognized compensation expense relating to unvested RSAs granted was $0.1 million which is expected to be recognized over a weighted-average period of 0.5 years.