Stock-Based Compensation

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-based compensation expense for options granted are reflected in the consolidated statements of operations and comprehensive loss as follows:

	Year ended December 31,
	2020		2019
General and administrative	$	348,810	$	362,833
Research and development	311,507		521,256
Total	$	660,317	$	884,089

As of December 31, 2020, the Company had $1.1 million of unrecognized compensation expense related to options outstanding under its equity plans. This expense is expected to be recognized over a weighted average period of two years as of December 31, 2020.

Equity Plans

The Company maintains two equity compensation plans, the 2014 Ocugen OpCo, Inc. Stock Option Plan (the “2014 Plan”) and the Ocugen, Inc. 2019 Equity Incentive Plan (the “2019 Plan”, collectively with the 2014 Plan, the "Plans"), which replaced the Histogenics Corporation 2013 Equity Incentive Plan (the "2013 Plan").

In December 2019, Ocugen’s stockholders approved the adoption of the 2019 Plan and the 2013 Plan was frozen. No additional awards have been or will be made under the 2013 Plan and any remaining authorized shares under the 2013 Plan were recycled into the 2019 Plan. On the first business day of each fiscal year, pursuant to the "Evergreen" provision of the 2019 Plan, the aggregate number of shares that may be issued under the 2019 Plan will automatically increase by a number equal to the lesser of 4% of the total number of shares of Company common stock outstanding on December 31st of the prior year, or a number of shares of Company common stock determined by the Board or Directors.

As of December 31, 2020, the 2014 Plan provides for the granting of up to 0.8 million equity awards in respect to Ocugen's common stock. As of December 31, 2020, the 2019 Plan provides for the granting of up to 4.2 million equity awards in respect of Ocugen's common stock, inclusive of equity awards that were previously available for issuance under the 2013 Plan and the additional shares authorized for issuance pursuant to the 2019 Plan's "Evergreen" provision on January 1, 2020.

As of December 31, 2020, an aggregate of 0.4 million and 3.8 million shares of Company common stock were issuable upon the exercise of outstanding stock options under the 2014 Plan and 2019 Plan, respectively.

Options to Purchase Common Stock

The assumptions utilized in the fair value calculation for options to purchase common stock as of December 31, 2020 and 2019 are as follows:

	Year ended December 31,
	2020	2019
Weighted average expected option term (years)	6.0	6.0
Range of expected stock price volatility	110% - 117%	89% - 110%
Weighted average expected stock price volatility	112%	109%
Range of risk-free interest rate	0.3% – 1.7%	1.5% – 2.4%
Expected dividend rate	0%	0%

The following table summarizes the stock option activity under the Plans:

	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Options outstanding at December 31, 2019	731,189	$	4.59	8.0	$	24,028
Granted	4,082,950	$	0.41
Forfeited	(589,706)	$	2.55
Options outstanding at December 31, 2020	4,224,433	$	0.84	8.9	$	5,496,219
Options exercisable at December 31, 2020	512,288	$	3.48	6.8	$	286,223

The weighted average grant date fair value of stock options granted during the years ended December 31, 2020 and 2019 were $0.34 and $0.84, respectively. The total fair value of stock options vested during the years ended December 31, 2020 and 2019 were $0.5 million and $1.0 million, respectively.