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Stock-Based Compensation
9 Months Ended
Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation

10. Stock-Based Compensation

In February 2018, the Company adopted the 2018 Equity Incentive Plan (“2018 Plan”). The 2018 Plan is the successor to and continuation of the Second Amended and Restated 2012 Stock Plan (“2012 Plan”) and is administered with either stock options or RSUs. The Board administers the plans. Upon adoption of the 2018 Plan, no new stock options or awards are issuable under the 2012 Plan, as amended. The 2018 Plan also provides for other types of equity to issue awards, which at this time the Company does not plan to utilize.

On June 14, 2023, the Company’s stockholders approved the Fifth Amended and Restated 2018 Equity Incentive Plan ("2018 Fifth Amended Plan"), which included an increase of 550,000 shares of common stock reserved for issuance. As of September 30, 2024 there were 511,562 shares available for issuance under the 2018 Fifth Amended Plan. In November 2024, the Company’s stockholders approved an amendment and restatement of the Company’s 2018 Fifth Amended Plan to increase the number of shares authorized for issuance by 1,850,000 shares and to extend the term of the Plan to October 10, 2034.

On November 3, 2021, the Board approved and adopted the Company’s 2021 Inducement Plan ("2021 Inducement Plan") to provide for the reservation of 26,000 shares of the Company’s common stock to be used exclusively for the grant of awards to individuals not previously an employee or non-employee director of the Company. As of September 30, 2024, 6,779 shares were available for grant under the 2021 Inducement Plan.

Stock Options

The following table summarizes stock option activity, which includes performance awards, under the 2012 Plan, the 2018 Fifth Amended Plan and the 2021 Inducement Plan during the nine months ended September 30, 2024:

 

 

 

Stock Options
Outstanding

 

 

Weighted-
Average
Exercise Price

 

 

Weighted-
Average
Remaining
Contractual
Term
(in years)

 

 

Aggregate
Intrinsic
Value
(in thousands)

 

Balance at December 31, 2023

 

 

76,301

 

 

$

362.33

 

 

 

 

 

 

 

Options granted

 

 

10,880

 

 

$

6.52

 

 

 

 

 

 

 

Options exercised

 

 

 

 

$

 

 

 

 

 

 

 

Options forfeited/cancelled

 

 

(3,795

)

 

$

248.08

 

 

 

 

 

 

 

Balance at September 30, 2024

 

 

83,386

 

 

$

321.11

 

 

 

7.9

 

 

$

 

Vested and expected to vest at September 30, 2024

 

 

83,386

 

 

$

321.11

 

 

 

7.9

 

 

$

 

Vested and exercisable at September 30, 2024

 

 

44,243

 

 

$

480.71

 

 

 

7.2

 

 

$

 

The Company uses the Black-Scholes option pricing model to estimate the fair value of each option grant on the date of grant or any other measurement date. The following table sets forth the assumptions used to determine the fair value of stock options granted during the nine months ended September 30, 2024 and 2023:

 

 

 

Nine Months Ended
September 30,

 

 

2024

 

2023

Risk-free interest rate

 

3.6% - 4.7%

 

3.5% - 4.4%

Expected volatility

 

92.8% - 96.8%

 

98.5% - 102.7%

Expected dividend yield

 

 

Expected life (years)

 

5.5 - 6.3

 

5.5 - 6.3

The weighted-average grant date fair value of options granted during the nine months ended September 30, 2024 and 2023 was $5.50 per option and $28.76 per option, respectively.

Restricted Stock Units

The following table summarizes RSU activity for the nine months ended September 30, 2024:

 

 

 

Number of Shares

 

 

Weighted-
Average Grant
Date Fair Value

 

Balance at December 31, 2023

 

 

253,735

 

 

$

33.07

 

Granted

 

 

281,300

 

 

$

8.02

 

Vested

 

 

(63,354

)

 

$

33.54

 

Forfeited/cancelled

 

 

(19,865

)

 

$

38.43

 

Balance at September 30, 2024

 

 

451,816

 

 

$

17.17

 

In August 2023, the Board approved the acceleration of vesting of all unvested, outstanding RSUs. As a result of this modification, an additional $7.9 million of stock-based compensation expense was recognized during the three months ended September 30, 2023.

Stock-Based Compensation Expense

The following table presents total stock-based compensation expense included in each functional line item in the accompanying condensed consolidated statements of operations (in thousands):

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Research and development

 

 

682

 

 

 

4,680

 

 

 

1,970

 

 

 

6,308

 

Selling, general and administrative

 

 

599

 

 

 

5,851

 

 

 

2,423

 

 

 

8,621

 

Total stock-based compensation expense

 

$

1,281

 

 

$

10,531

 

 

$

4,393

 

 

$

14,929

 

 

At September 30, 2024 there was $3.8 million of compensation cost related to unvested stock options expected to be recognized over a remaining weighted average vesting period of 2.2 years and $7.1 million of compensation cost related to unvested RSUs expected to be recognized over a remaining weighted average vesting period of 3.2 years.