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Equity Incentive Plans
6 Months Ended
Jun. 30, 2024
Equity Incentive Plans  
Equity Incentive Plans

10. Equity Incentive Plans

Stock Award Plans

The Company maintains a 2016 Equity Incentive Plan (the “2016 Plan”), which provides for the issuance of incentive share awards in the form of non-qualified and incentive stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards and performance-based stock awards. As of June 30, 2024, there were 2,480,159 shares available for issuance under the 2016 Plan.

Stock option transactions during the six months ended June 30, 2024 are presented below:

Options Outstanding

Weighted

Average

Weighted

Remaining

Average

Contractual

Aggregate

Exercise

Term

Intrinsic

    

Shares

    

Price

    

(Years)

    

Value (in thousands)

Outstanding at December 31, 2023

 

3,165,216

$

5.04

 

5.9

$

429

Granted

 

1,784,054

$

3.38

 

 

Exercised

(37,282)

$

3.38

$

24

Forfeited/Cancelled/Expired

 

(266,251)

$

15.36

 

 

Outstanding at June 30, 2024

 

4,645,737

$

3.83

 

7.1

$

144

Vested and expected to vest at June 30, 2024

 

4,645,737

$

3.83

 

7.1

$

144

Exercisable at June 30, 2024

 

2,627,743

$

4.14

 

5.3

$

144

The aggregate intrinsic value of options at June 30, 2024 is based on the Company’s closing stock price on that date of $2.75 per share.

Restricted stock unit awards transactions during the six months ended June 30, 2024 are presented below:

Weighted Avg

Grant Date

    

Shares

    

Fair Value

Outstanding at December 31, 2023

200,000

$

2.39

Granted

90,000

$

3.38

Outstanding at June 30, 2024

290,000

$

2.70

Share-based Compensation

The Company estimates the fair value of stock options with performance and service conditions using the Black-Scholes valuation model (“Black-Scholes”). Compensation expense related to stock options granted is measured at the grant date based on the estimated fair value of the award and is recognized on the accelerated attribution method over the requisite service period.

The assumptions used in the Black-Scholes model during the three and six months ended June 30, 2024 and 2023 are presented below.

Six Months Ended June 30, 

    

2024

2023

Risk-free interest rate

4.24% - 4.25%

3.54% - 4.2%

Expected volatility

89.4% - 92.5%

90.99% - 91.58%

Expected term (in years)

5.12 - 7.0

5.5 - 7.00

Expected dividend yield

0%

0%

The table below summarizes the total share-based compensation expense included in the Company’s condensed consolidated statements of operations for the periods presented (in thousands):

Three Months Ended June 30, 

Six Months Ended June 30, 

    

2024

    

2023

    

2024

    

2023

Research and development

$

323

$

259

$

375

$

804

General and administrative

 

1,012

 

2

 

1,494

 

314

Total stock-based compensation expense

$

1,335

$

261

$

1,869

$

1,118

As of June 30, 2024, there was $4.0 million of total unrecognized compensation expense related to unvested stock options and restricted stock units, which the Company expects to recognize over the weighted average remaining period of approximately 2.1 years.