Equity Incentive Plans (Tables)

9 Months Ended

Sep. 30, 2019

Assumptions used in the black-Scholes model

The assumptions used in the Black-Scholes model are presented below:


	Nine Months Ended September 30,
	2019		2018
Risk-free interest rate	1.71 to 2.23	%	-	%
Expected volatility	89.26 to 90.43	%	-	%
Expected term (in years)	5.75 to 6.25		-
Expected dividend yield	0	%	-	%

Allocation of Stock-Based Compensation Expenses

The tables below summarize the total stock-based compensation expense included in the Company’s consolidated statements of operations for the periods presented:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018

Research and development	$	358,000	$	1,000	$	609,000	$	8,000
General and administrative		2,140,000		7,000		2,615,000		39,000
Total stock-based compensation	$	2,498,000	$	8,000	$	3,224,000	$	47,000


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Expense related to RSA's issued prior to Merger and vesting beginning on Merger closing date	$	892,000	$	-	$	1,468,000	$	-
Acceleration of RSA expense in connection with executive severance		1,244,000		-		1,244,000		-
Expense related to vesting of stock options issued under the Company's stock plans		362,000		8,000		512,000		47,000
Total stock based compensation expense	$	2,498,000	$	8,000	$	3,224,000	$	47,000

Summary of Stock Option Activity

Stock option transactions during the nine months ended September 30, 2019 are presented below:


				Weighted
				Average
		Weighted		Remaining
		Average		Contractual	Aggregate
		Exercise		Term	Intrinsic
	Shares	Price		(Years)	Value
Outstanding at December 31, 2018	136,463	$	36.31	5.02		—
Assumed in the Merger	52,602		56.60			—
Granted	1,179,825		3.17			1,549,000
Forfeited/Cancelled	(57,394)		13.16			—
Outstanding at September 30, 2019	1,311,496	$	8.32	9.04		1,507,000
Vested and expected to vest at September 30, 2019	1,311,496	$	8.32	9.04	$	1,507,000
Exercisable at September 30, 2019	156,858	$	44.52	4.66	$	—

Schedule of restricted stock awards

Restricted stock award transactions under the Assumed 2016 Plan during the nine months ended September 30, 2019 are presented below:


			Weighted Avg
			Grant Date
	Shares		Fair Value
Outstanding at December 31, 2018		416,856	$	29.17
Granted		—		—
Forfeited/Cancelled		(32,714)		-
Issued as Common Stock		(29,108)		-
Outstanding at September 30, 2019		355,034	$	29.25

Shares Reserved for Future Issuance

As of September 30, 2019, the Company had reserved shares of its common stock for future issuance as follows:


		Shares Reserved
Stock options outstanding		1,311,496
Employee stock purchase plan		5,462
Available for future grants under the 2016 Plan		38,974
Warrants outstanding		1,854,262
Total shares reserved		3,210,194