Stock-Based Compensation

3 Months Ended

Mar. 31, 2024

Stock-Based Compensation [Abstract]

Stock-Based Compensation

11. Stock-Based Compensation

2020 Inducement Plan

On March 26, 2020, the Compensation Committee of the Board of Directors, or the Compensation Committee, approved the 2020 Inducement Plan in order to award nonstatutory stock options, restricted stock awards, restricted stock unit awards and other stock-based awards to persons not previously an employee or director of the Company, or following a bona fide period of non-employment, as an inducement material to such persons entering into employment with the Company.

The 2020 Inducement Plan provides for a total of 600,000 shares for the issuance of the Company’s common stock. The Compensation Committee also adopted a form of stock option grant notice and stock option agreement and forms of restricted stock unit grant notice and restricted stock unit agreement for use with the Inducement Plan.

As of March 31, 2024, there were 409,000 shares of common stock subject to outstanding awards and 191,00 shares of common stock available for future issuance under the 2020 Inducement Plan. 

2017 Equity Incentive Plan

On August 10, 2017, Private ArTara (a predecessor entity of the Company), its Board of Directors and its stockholders approved the ArTara Therapeutics, Inc. 2017 Equity Incentive Plan to enable Private ArTara and its affiliates to recruit and retain highly qualified personnel and to incentivize personnel for productivity and growth.

The 2017 Equity Incentive Plan provided for the grant of a total of 2,000,000 shares for the issuance of stock options, stock appreciation rights, restricted stock and restricted stock units to among others, members of the Board of Directors, employees, consultants and service providers to the Company and its affiliates. As of January 9, 2020, no additional awards will be made under the 2017 Equity Incentive Plan.

2014 Equity Incentive Plan

On October 3, 2014, the stockholders approved the 2014 Equity Incentive Plan. On June 20, 2017, the Company’s Board of Directors amended the 2014 Equity Incentive Plan, or the Amended and Restated 2014 Plan. On July 31, 2017, the stockholders approved this amendment. On January 1, 2020, Protara Therapeutics, Inc. amended its Amended and Restated 2014 Equity Incentive Plan.

The Amended and Restated 2014 Plan, as amended, provides for the grant of incentive and non-statutory stock options, stock appreciation rights, restricted stock and stock unit awards, performance units, stock grants and qualified performance-based awards. The Amended and Restated 2014 Plan, as amended, provides that the number of shares reserved and available for issuance will automatically increase each January 1, by four percent of the Company’s common stock on the immediately preceding December 31, adjusted for the number of shares of the Company’s common stock issuable upon conversion of any security that the Company may issue that is convertible into or exchangeable for the Company’s common stock, or such lesser number of shares as determined by the Company’s Board of Directors.

On January 1, 2024, pursuant to the annual evergreen feature of the Amended and Restated 2014 Plan, as amended, the number of shares authorized under the Amended and Restated 2014 Plan, as amended, was increased by 911,380 shares to 4,474,683 shares. As of March 31, 2024, there were 4,090,945 shares of common stock subject to outstanding awards and 181,939 shares of common stock available for future issuance under the Amended and Restated 2014 Plan.

Terms of the stock awards, including vesting requirements, are determined by the Board of Directors, subject to the provisions of the plans. Certain awards provide for accelerated vesting if there is a change in control as defined in the plan.

2014 Employee Stock Purchase Plan

On October 3, 2014, the stockholders approved the 2014 Employee Stock Purchase Plan, or the 2014 ESPP. The 2014 ESPP initially authorized the issuance of up to 3,513 shares of the Company’s common stock. The number of shares increases each January 1, commencing on January 1, 2015 and ending on (and including) January 1, 2024, by an amount equal to the lesser of one percent of the outstanding shares as of the end of the immediately preceding fiscal year, 7,025 shares or any lower amount determined by the Company’s Board of Directors prior to each such January 1^st.

On January 1, 2024, pursuant to the increase per the 2014 ESPP, the number of shares authorized under the 2014 ESPP was increased by 7,025 shares to 46,112 shares. As of March 31, 2024, the authorized number of shares under the 2014 ESPP was 46,112 and the number of shares available for issuance was 46,112. During the three months ended March 31, 2024 and 2023, no shares were issued under the 2014 ESPP. 

Restricted Stock Units

The following table summarizes restricted stock unit, or RSU, activities for the three months ended March 31, 2024:

	Restricted Stock Units			Weighted Average Grant Date Fair Value
Non-vested as of December 31, 2023		236,679		$	7.07
Granted		210,700			1.91
Forfeited		-			-
Vested		(104,484	)		10.57
Non-vested as of March 31, 2024		342,895		$	2.84

The fair value of RSUs is amortized on a straight-line basis over the requisite service period of the respective awards. As of March 31, 2024, the unamortized value of RSUs was $821. As of March 31, 2024, the weighted average remaining amortization period was 2.32 years. As of March 31, 2024 and December 31, 2023, 289,500 RSUs have vested that have not yet been settled into shares of the Company’s common stock.

During the three months ended March 31, 2024, the Company issued 68,934 shares of the Company’s common stock from the net settlement of 104,484 RSUs. The Company paid $76 in connection with the net share settlement of these RSUs.

Stock Options

The following table summarizes stock option activities for the three months ended March 31, 2024:

	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (1)
Outstanding as of December 31, 2023		2,900,205		$	9.50		8.03	$	20
Granted		1,102,300			1.91		-		-
Exercised		-			-		-		-
Forfeited		-			-		-		-
Expired		(627	)		3.20		-		-
Outstanding as of March 31, 2024		4,001,878		$	7.41		7.45	$	3,675
Vested and expected to vest at March 31, 2024		4,001,878		$	7.41		7.45	$	3,675
Exercisable as of March 31, 2024		1,648,715			12.90		6.71		429

(1) Aggregate intrinsic value represents the difference between the exercise price of the option and the closing market price of our common stock on December 31, 2023 and March 31, 2024, respectively. The intrinsic value of options exercised during the period ended March 31, 2024 was $0 and no options were exercised.

The weighted average grant date fair value per share of the options granted during the three months ended March 31, 2024 and 2023 was $1.52 and $2.42 respectively. As of March 31, 2024, there was approximately $6,301 of unrecognized share-based compensation for unvested stock option grants, which is expected to be recognized over a weighted average period of 2.86 years. The total unrecognized stock-based compensation cost will be adjusted for actual forfeitures as they occur.

Summary of Stock-Based Compensation Expense

The following tables summarize total stock-based compensation costs recognized:

	For the Three Months Ended March 31,
	2024		2023
Restricted stock units	$	151	$	314
Stock options		1,075		1,261
Total	$	1,226	$	1,575

Stock-based compensation expense was reflected within the condensed consolidated statements of operations and comprehensive loss as:

	For the Three Months Ended March 31,
	2024		2023
Research and development	$	374	$	400
General and administrative		852		1,175
Total	$	1,226	$	1,575