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Common Stock
9 Months Ended
Sep. 30, 2023
Equity [Abstract]  
Common Stock

8. Common Stock

Each share of common stock entitles the holder to one vote for each share of common stock held. Common stockholders are entitled to receive dividends, as may be declared by the Company’s Board. During each of the three and nine months ended September 30, 2023 and the three and nine months ended September 30, 2022, no dividends have been declared or paid.

Pre-funded Warrants

In connection with the Private Placement, the Company issued pre-funded warrants to purchase up to an aggregate of 2,980,889 shares of common stock at a purchase price of $7.2999 per pre-funded warrant. Each pre-funded warrant is exercisable for one share of common stock at an exercise price of $0.0001 per share of common stock, is immediately exercisable and will remain exercisable until exercised in full. The pre-funded warrants have no expiration date and the price of the pre-funded warrants does not include any discounts. The Company evaluated the pre-funded warrants for liability or equity classification in accordance with the provisions of ASC Topic 480, Distinguishing Liabilities from Equity, and determined that equity treatment was appropriate because the pre-funded warrants did not meet the definition of liability instruments and met the criteria for permanent equity. As of September 30, 2023, no pre-funded warrants were exercised.

The Company has reserved the following number of shares of common stock for the exercise of outstanding stock options and future issuance of stock-based awards.

 

 

September 30,
2023

 

 

December 31,
2022

 

Common stock options

 

 

6,099,897

 

 

 

4,440,811

 

Pre-funded warrants

 

 

2,980,889

 

 

 

2,980,889

 

Shares available for issuance under the 2021 Plan

 

 

1,289,400

 

 

 

1,682,909

 

Shares available for issuance under the 2021 ESPP

 

 

572,254

 

 

 

286,127

 

Total common stock reserved for future issuance

 

 

10,942,440

 

 

 

9,390,736