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Stock Plans and Stock Based Compensation
 9 Months Ended
Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Stock Plans and Stock Based Compensation Stock Plans and Stock-Based Compensation
As of September 30, 2022, the Company had two shareholder-approved, stock-based compensation plans: (i) the Amended and Restated 2010 Employee Stock Purchase Plan (“ESPP”), adopted by the Board of Directors in April 2017 and approved by shareholders in June 2017, and (ii) the Fourth Amended and Restated 2010 Stock Incentive Plan (“2010 Plan”). New employees are typically issued options as an inducement equity award under Nasdaq Listing Rule 5635(c)(4) outside of the 2010 Plan.
The Fourth Amended and Restated 2010 Stock Incentive Plan
The 2010 Plan permits the granting of incentive and non-qualified stock options and stock awards to employees, officers, directors, and consultants of the Company and its subsidiaries at prices determined by the Company’s Board of Directors. In May 2021, the Company's shareholders approved the Company's Fourth Amended and Restated 2010 Stock Incentive Plan to reserve an additional 11,000,000 shares of common stock for issuance under the 2010 Plan. The Company can issue up to 23,190,000 shares of its common stock pursuant to awards granted under the 2010 Plan. Options become exercisable as determined by the Board of Directors and expire up to ten years from the date of grant. The 2010 Plan uses a “fungible share” concept under which each share of stock subject to awards granted as options and stock appreciation rights (“SARs”), will cause one share per share under the award to be removed from the available share pool, while each share of stock subject to awards granted as restricted stock, restricted stock units, other stock-based awards or performance awards where the price charged for the award is less than 100% of the fair market value of the Company’s common stock will cause 1.3 shares per share under the award to be removed from the available share pool. As of September 30, 2022, the Company has only granted options to purchase shares of the Company’s common stock with an exercise price equal to the closing market price of the Company’s common stock on the Nasdaq Global Market on the grant date. As of September 30, 2022, 9,980,365 shares remained available for grant under the 2010 Plan.
Stock Options
During the nine months ended September 30, 2022, the Company’s board of directors granted options to purchase 3,663,800 shares of the Company’s common stock to the officers and employees of the Company under the 2010 Plan. Shares granted to officers and employees vest as to 25% of the shares underlying the award on the first anniversary of the grant date and as to an additional 6.25% of the shares underlying the award at the end of each subsequent quarter, based upon continued employment over a four year period, and are exercisable at a price equal to the closing price of the Company’s common stock on the Nasdaq Global Market on the grant date.
During the nine months ended September 30, 2022, the Company’s board of directors granted options to its non-employee directors to purchase 425,000 shares of common stock under the 2010 Plan, which will vest and become exercisable one year from the grant date. In addition, during the nine months ended September 30, 2022, the Company's board of directors issued options to newly-hired employees as an inducement equity award under Nasdaq Listing Rule 5635(c)(4) outside of the 2010 Plan to purchase 2,019,300 shares of common stock. These options will vest as to 25% of the shares underlying the option on the first anniversary of the grant date, and as to an additional 6.25% of the shares underlying the option on each successive three-month period thereafter. All option awards are exercisable at a price equal to the closing price of the Company’s common stock on the Nasdaq Global Market on the grant dates.
A summary of stock option activity under the 2010 Plan and inducement awards are summarized as follows:
Number of
Shares		Weighted
Average
Exercise
Price per
Share		Weighted
Average
Remaining Contractual Life		Aggregate Intrinsic Value
Outstanding, December 31, 202110,363,769 $3.80 7.41
Granted6,108,100 2.66 
Exercised— — 
Canceled/Forfeited(785,413)5.74 
Outstanding, September 30, 2022
15,686,456 $3.26 7.66$2 
Exercisable at September 30, 2022
7,846,344 $3.30 6.37$1 
Vested and unvested expected to vest at September 30, 2022
10,242,332 $3.61 8.19$1 
The weighted average grant date fair values of the stock options granted during the nine months ended September 30, 2022 and 2021 were $2.18 and $9.21, respectively, and were calculated using the following estimated assumptions:
Nine Months Ended
September 30,
 20222021
Expected term (years) 5.55.5
Risk free interest rate
1.4-2.9%
0.4-1.4%
Expected Volatility
110%-114%
109 %
Expected DividendsNoneNone
As of September 30, 2022, there was approximately $9.3 million of unrecognized compensation cost related to unvested employee stock option awards outstanding, net of the impact of estimated forfeitures that is expected to be recognized as expense over a weighted average period of 3.30 years. There were no employee stock options exercised during the nine months ended September 30, 2022. The intrinsic value of employee stock options exercised during the nine months ended September 30, 2021 was $0.5 million.
Restricted Stock Awards
The following table presents a summary of unvested restricted stock awards (“RSAs”) under the 2010 Plan as of September 30, 2022:
Number of
Shares		Weighted
Average
Grant Date Fair Value
Unvested, December 31, 202110,312 $3.45 
Awarded— — 
Vested(10,312)3.45 
Forfeited— — 
Unvested, September 30, 2022
— $— 
As of September 30, 2022, there were no outstanding RSAs.
Amended and Restated 2010 Employee Stock Purchase Plan
The Company has reserved 2,000,000 shares of common stock for issuance under the ESPP. Eligible employees may purchase shares of the Company’s common stock at 85% of the lower closing market price of the common stock at the beginning of the enrollment period or ending date of the purchase period within a two-year enrollment period, as defined. The Company has four six-month purchase periods per each two-year enrollment period. If, within any one of the four purchase periods in an enrollment period, the purchase period ending stock price is lower than the stock price at the beginning of the enrollment period, the two-year enrollment resets at the new lower stock price. This aspect of the plan was amended in 2017. Prior to 2017, the plan included two six-month purchase periods per year with no defined enrollment period. During the three months ended September 30, 2022 no shares were issued under the ESPP and during the nine months ended September 30, 2022, 169,296 shares were issued under the ESPP. As of September 30, 2022, there were 1,384,234 shares available for future purchase under the ESPP.
ESPP compensation expense for the three and nine months ended September 30, 2022 and 2021 was insignificant.
Total Stock-Based Compensation Expense
For the three and nine months ended September 30, 2022 and 2021, the Company recorded stock-based compensation expense to the following line items in its costs and expenses section of the Condensed Consolidated Statements of Operations and Comprehensive Loss, including expense related to its ESPP:
 Three Months Ended
September 30,		Nine Months Ended
September 30,
(in thousands)2022202120222021
Research and development expenses$505 $553 $2,084 $1,331 
General and administrative expenses819 911 2,924 2,507 
Total stock-based compensation expense$1,324 $1,464 $5,008 $3,838