Note 7 - Stock-based Compensation

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

7. Stock-based Compensation

2016 Omnibus Incentive Plan

The Panbela Therapeutics, Inc. 2016 Omnibus Incentive Plan (the “2016 Plan”) was adopted by our Board of Directors in March 2016 and approved by our stockholders in May 2016. The 2016 Plan permits the granting of incentive and non-statutory stock options, restricted stock, stock appreciation rights, performance units, performance shares and other stock awards to eligible employees, directors and consultants. We grant options to purchase shares of common stock under the 2016 Plan at no less than the fair market value of the underlying common stock as of the date of grant. Options granted under the 2016 Plan have a maximum term of ten years. As of March 31, 2022, options to purchase 2,220,136 shares of common stock and 5,395 restricted stock units, each representing the right to acquire one share of common stock, were outstanding under the 2016 Plan and 2,019,776 shares remained available for future awards.

2011 Stock Option Plan

Our Board of Directors ceased making awards under the Panbela Therapeutics, Inc. 2011 Stock Option Plan (the “2011 Plan”) upon the original receipt of stockholder approval for the 2016 Plan in May 2016. Awards outstanding under the 2011 Plan remain outstanding in accordance with and pursuant to the terms thereof. As of March 31, 2022, options to purchase 224,000 shares of common stock remained outstanding under the 2011 Plan. The average remaining life is approximately 2.7 years.

Stock-based Compensation Expense

General and administrative (“G&A”) and research and development (“R&D”) expenses include non-cash stock-based compensation expense as a result of our issuance of stock options. The terms and vesting schedules for stock-based awards vary by type of grant and the employment status of the grantee. The awards granted through March 31, 2022 vest based upon time-based and performance conditions. There was approximately $1.5 million unamortized stock-based compensation expense related to options granted to employees, directors and consultants as of March 31, 2022.

Stock-based compensation expense for each of the periods presented is as follows (in thousands):

	Three Months Ended March 31,
	2022		2021
General and Administrative	$	271	$	225
Research and Development		63		27
	$	334	$	252

Details of options available to grant, granted, exercised, cancelled or forfeited during the three months ended March 31, 2022 follows:

	Shares Underlying Options			Weighted Average Exercise Price Per Share		Aggregate Intrinsic Value
Balance at January 1, 2022		2,463,636		$	5.76	$	8,821
Additional shares available to grant		-			-
Granted		-			-
Exercised		-			-
Cancelled		-			-
Forfeitures or expirations		(19,500	)		14.07
Balance at March 31, 2022		2,444,136		$	5.76	$	13,300

Information about stock options outstanding, vested and expected to vest as of March 31, 2022, is as follows:

				Outstanding, Vested and Expected to Vest						Options Vested and Exercisable
Per Share Exercise Price				Shares		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Options Exercisable		Weighted Average Remaining Contractual Life (Years)
$	1.10				14,000		1.20	$	1.100		14,000		1.20
$	2.26	-	$2.50		79,225		7.37	$	2.310		22,000		1.95
$	2.95	-	$4.17		1,207,940		7.20	$	3.410		856,821		6.62
$	4.50	-	$8.10		687,100		6.44	$	6.134		609,600		6.22
$	9.99	-	$10.10		262,048		7.80	$	9.992		156,024		7.47
$	15.10				193,823		4.70	$	15.100		193,823		4.70
Totals					2,444,136		7.08	$	5.760		1,852,268		6.26