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Stock-based Compensation
9 Months Ended
Sep. 30, 2024
Stock-based compensation  
Stock-based compensation

8. Stock-based compensation

Stock-based compensation expense was included in general and administrative and research and development as follows (in thousands):

Three Months Ended

Nine Months Ended

September 30,

September 30,

2024

2023

2024

2023

General and administrative

$

103

$

172

$

273

$

111

Research and development

36

105

11

Total stock-based compensation

$

139

$

172

$

378

$

122

Stock-based award plans

In June 2024, in connection with the 2024 Annual Meeting of Stockholders, our stockholders approved an amendment (the “Amendment”) to the NeuroBo Pharmaceuticals, Inc. 2022 Equity Incentive Plan (the “2022 Plan”). Pursuant to the terms and conditions of the Amendment, the 2022 Plan was amended to:

automatically increase on January 1st of each year for a period of eight years commencing on January 1, 2025 and ending on (and including) January 1, 2032, the aggregate number of shares of common stock that may be issued pursuant to Awards (as defined in the 2022 Plan) to an amount equal to 10% of the Fully Diluted Shares (as defined in the 2022 Plan) as of the last day of the preceding calendar year, provided, however that the Board may act prior to the effective date of any such annual increase to provide that the increase for such year will be a lesser number of shares of common stock; and
increase the aggregate maximum number of shares of common stock that may be issued pursuant to the exercise of Incentive Stock Options (as defined in the 2022 Plan) to 1 million shares of the common stock plus the amount of any increase in the number of shares that may be available for issuance pursuant to the annual increase described above, but in no event more than 15 million shares of the common stock issued as incentive stock options.

The following table summarizes the outstanding awards issued pursuant to our stock-based award plans and inducement grants as of September 30, 2024 and the remaining shares of common stock available for future issuance:

Remaining shares of

Stock

common stock available

Plan Name

Options

RSUs

for future issuance

2019 Equity Incentive Plan (the “2019 Plan”)

1,575

2022 Plan

3,125

170,059

393,222

2021 Inducement Plan

4,166

Total

4,700

170,059

397,388

For stock options and RSUs granted under the 2019 Plan and 2022 Plan as of September 30, 2024, unrecognized stock-based compensation costs totaled $0.8 million. The unrecognized stock-based costs are expected to be recognized as an expense over a weighted average period of 1.7 years.

Stock options

The following table summarizes the status of our outstanding and exercisable options and related transactions for the period presented (in thousands, except share and per share amounts):

Outstanding

Exercisable

Shares of

Weighted

Shares of

Weighted

Common

Weighted

Average

Common

Weighted

Average

Stock

Average

Aggregate

Remaining

Stock

Average

Aggregate

Remaining

Issuable

Exercise

Intrinsic

Contractual

Issuable

Exercise

Intrinsic

Contractual

for Options

Price

Value

Term (years)

for Options

Price

Value

Term (years)

As of January 1, 2024

4,700

$

398.30

$

8.6

4,577

$

391.04

$

8.6

Vested

104

747.38

As of September 30, 2024

4,700

$

398.30

$

7.8

4,681

$

398.93

$

7.8

Restricted Stock Units

The following table summarizes the status of our RSUs and related transactions for the period presented (in thousands, except share and per share amounts):

Outstanding

Vested and Deferred Release

Shares of

Average

Shares of

Average

Common Stock

Grant Date

Aggregate

Common Stock

Grant Date

Aggregate

Issuable

Fair Value

Intrinsic

Issuable

Fair Value

Intrinsic

for RSUs

Price

Value

for RSUs

Price

Value

As of January 1, 2024

141,361

$

4.55

$

523

5,469

$

4.02

$

20

Granted

83,899

5.41

Vested and Deferred Release

14,768

4.29

Vested and Released

(55,201)

4.68

207

As of September 30, 2024

170,059

$

4.93

$

539

20,237

$

4.21

$

64

Grant date fair value of stock options, warrants and restricted stock units

We estimated the grant date fair value of stock options and warrants granted to employees, consultants (including placement agents for the offerings), and directors using the Black-Scholes option pricing model. The following assumptions used in the Black-Scholes option pricing model for stock options and warrants granted in 2024 and 2023 are as follows:

Contingent

Stock

Warrants Granted

Warrants Granted

Options Granted

in June 2024

in June 2024

in March 2023

Weighted average fair value

$

2.73

$

3.43

$

3.63

Expected stock price volatility

140.0

%

127.0

%

82.9

%

Expected term (years)

2.1

5.7

5.0

Expected dividend yield

%

%

%

Risk-free interest rate

463

%

4.31

%

3.54

%

We estimated the grant date fair value of restricted stock units granted to employees, consultants and directors based on the closing sales price of our common stock as reported on Nasdaq on the date of grant.