CAPITAL STOCK, STOCK-BASED COMPENSATION AND BENEFIT PLAN (Tables)

9 Months Ended

Sep. 30, 2023

Equity Plans

The following table contains information about our equity plans:

September 30, 2023

Title of Plan

Group Eligible

Type of Award Granted (or to be Granted)

Awards Outstanding

Additional Awards Authorized for Grant

Keryx Equity Plans(1)(2)*

Employees, directors and consultants

Stock options and RSUs

284,556

—

Akebia Therapeutics, Inc. Amended and Restated 2008 Equity Incentive Plan (the 2008 Plan)(2)

Employees, directors and consultants

Stock options and RSUs

419

—

Akebia Therapeutics, Inc. 2014 Incentive Plan, as amended (2) (3)

(the 2014 Plan)

(replaces 2008 Plan)

Employees, directors, consultants and advisors

Stock options, RSUs, SARs and performance awards

17,033,234

—

Akebia Therapeutics, Inc. 2023 Stock Incentive Plan(3) (the 2023 Plan)

(replaces 2014 Plan)

Employees, officers, directors, consultants and advisors

Stock options, SARs, restricted stock, unrestricted stock, RSUs, performance awards, other share-based awards and dividend equivalents

1,558,500

16,169,791

(1) The Keryx Equity Plans consist of the Keryx Biopharmaceuticals, Inc. 1999 Share Option Plan, Keryx Biopharmaceuticals, Inc., as amended, the 2004 Long-Term Incentive Plan, as amended, the Keryx Biopharmaceuticals, Inc. 2007 Incentive Plan, the Keryx Biopharmaceuticals Inc. Amended and Restated 2013 Incentive Plan and the Keryx Biopharmaceuticals, Inc. 2018 Equity Incentive Plan.

(2) Shares are no longer being issued under these plans.

(3) Includes inducement awards that are subject to the terms and conditions of the applicable plan but were granted as inducement awards consistent with Nasdaq Listing Rule 5635(c)(4): 2,035,832 options outstanding under the 2014 Plan and 653,000 options outstanding under the 2023 Plan.

Stock Option Activity

The combined stock option activity for the nine months ended September 30, 2023, is as follows:


	Stock Options	Weighted Average Exercise Price		Weighted-Average Remaining Contractual Life (years)	Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2022	11,775,411	$	5.82	7.26 years	—
Granted	4,143,813	$	0.83	—	—

Expired	(5,989)	$	7.43
Canceled and forfeited	(1,299,122)	$	5.82	—	—
Outstanding at September 30, 2023	14,614,113	$	4.40	7.17 years	$	2,345
Exercisable at September 30, 2023	8,215,979	$	6.52	5.80 years

Restricted Stock Units Activity

RSU activity is as follows:


	2014 Plan			2023 Plan
	Number of Shares	Weighted Average Fair Value		Number of Shares	Weighted Average Fair Value
Outstanding as of December 31, 2022	5,674,406	$	2.10	—	—
Granted	2,759,675	$	0.68	590,500	$	1.50
Vested	(3,971,168)	$	1.02	—	—
Forfeited and canceled	(790,817)	$	1.05	—	—
Outstanding as of September 30, 2023	3,672,096	$	1.31	590,500	$	1.50

Assumptions Used in Black-Scholes Option Pricing Model

The weighted-average assumptions used in calculating the fair values of the rights to acquire stock under the 2023 Plan, the 2014 Plan and inducement awards were as follows:


	Three Months Ended September 30,								Nine Months Ended September 30,
Stock Options	2023				2022				2023				2022
Risk-free interest rate	4.08	%	-	4.55%	2.68	%	-	3.96%	3.54	%	-	4.55%	1.69	%	-	3.96%
Expected volatility	102.41	%	-	107.01%	87.34	%	-	88.92%	100.97	%	-	111.71%	79.77	%	-	91.57%
Expected term (years)	6.25 years		-	6.25 years	6.25 years		-	6.25 years	5.51 years		-	6.25 years	5.51 years		-	6.25 years
Expected dividend yield	—%				—%				—%				—%
Fair value at grant date	$1.38				$0.26				$0.69				$1.19

Stock-Based Compensation Expense in Consolidated Statement of Operations and Comprehensive Loss

The Company has classified stock-based compensation in its condensed consolidated statement of operations and comprehensive loss as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Cost of goods sold	$	74	$	227	$	214	$	386
Research and development	403		644		1,604		2,579
Selling, general and administrative	1,135		2,534		5,355		8,590
Restructuring	212		(50)		630		3,253
Total stock-based compensation	$	1,824	$	3,355	$	7,803	$	14,808