STOCK-BASED COMPENSATION

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Equity incentive plans:

The Company maintains the 2019 Equity Incentive Plan (the “2019 Plan”) and 2018 Omnibus Incentive Plan (the "2018 Plan"). As of June 30, 2023, 67,920 shares remain issuable under the 2019 Plan and 63,833 shares remain issuable under the 2018 Plan. In January 2023, the number of shares reserved under the 2018 Plan automatically increased by 41,666 shares of common stock pursuant to the terms of the 2018 Plan.

Employee Share Purchase Plan:

The Company adopted Foamix's Employee Share Purchase Plan ("ESPP") pursuant to which qualified employees (as defined in the ESPP) may elect to purchase designated shares of the Company’s common stock at a price equal to 85% of the lesser of the fair market value of the common stock at the beginning or end of each semi-annual share purchase period (“Purchase Period”). Employees are permitted to purchase the number of shares purchasable with up to 15% of the earnings paid (as such term is defined in the ESPP) to each of the participating employees during the Purchase Period, subject to certain limitations under Section 423 of the U.S. Internal Revenue Code.

As of June 30, 2023, 108,124 shares remain available for grant under the ESPP.

There were 8,339 shares of common stock purchased by employees pursuant to the ESPP during the six months ended June 30, 2023, and 3,704 shares of common stock purchased by employees during the six months ended June 30, 2022.

Options and RSUs granted to employees and directors:

There were no options or RSUs granted to employees and directors for the six months ended June 30, 2023.

During the six months ended June 30, 2022, the fair value of options and RSUs granted to employees and directors was $0.8 million.

The fair value of RSUs granted is based on the share price on the grant date.

The fair value of each option granted is estimated using the Black-Scholes option pricing method. The volatility is based on a combination of historical volatilities of companies in comparable stages as well as companies in the industry, by statistical analysis of daily share pricing model. The risk-free interest rate assumption is based on observed interest rates appropriate for the expected term of the options granted in dollar terms. The Company’s management uses the expected term of each option as its expected life. The expected term of the options granted represents the period of time that granted options are expected to remain outstanding.

Stock-based compensation expenses:

The following table illustrates the effect of stock-based compensation on the unaudited condensed consolidated statements of operations:


	Three Months Ended June 30				Six Months Ended June 30
(in thousands)	2023		2022		2023		2022
Research and development expenses	$	138	$	393	$	182	$	622
Selling, general and administrative	738		770		1,550		1,786
Discontinued operations*	—		—		—		(352)
Total	$	876	$	1,163	$	1,732	$	2,056

*Income from stock-based compensation is related to forfeitures.