Stock-Based Compensation

12 Months Ended

Dec. 31, 2025

Stock-Based Compensation

Stock-Based Compensation

(8) Stock-Based Compensation

The Company’s 2019 Equity Incentive Plan (the “2019 Plan”) became effective on January 31, 2020, succeeding the Company’s previous equity incentive plan. No new options may be issued under the previous plan, although shares subject to grants which are cancelled or forfeited will again be available under the 2019 Plan.

Effective June 1, 2021, the 2019 Plan was amended to increase the number of shares authorized to be issued from 1.0 million to 2.0 million. Effective June 12, 2024, the 2019 Plan was amended to increase the number of shares authorized from 2.0 million to 3.0 million. As of December 31, 2025, 0.3 million shares were available for future grants under the Plan.

The 2019 Plan provides for grants to employees, members of the Board of Directors, consultants and advisors to the Company, in the form of stock options, stock awards and other equity-based awards. The amount and terms of grants are determined by the Board of Directors, except when they are below previously approved thresholds allowing the Company’s Chief Executive Officer to grant awards on a discretionary basis. The Company’s stock options generally carry a maximum term of 10 years after date of grant and are exercisable in cash, or as otherwise determined by the Board of Directors.

Stock-based compensation expense reflected in the statement of operations was as follows:

	Year Ended
	December 31,
	2025		2024
General and administrative	$	969,990	$	2,510,444
Research and development		827,686		1,326,326
	$	1,797,676	$	3,836,770

Stock Options to Purchase Common Stock

The following table summarizes stock option activity:

				Weighted
				Average
				Remaining		Aggregate
		Weighted		Contractual		Intrinsic
	Number of	Average		Life		Value
	Options	Exercise Price		(Years)		(Thousands)
Options outstanding at December 31, 2024	2,336,020	$	11.39	7.3	$	1,298
Options granted	220,000	$	2.09			302
Options exercised	(14,284)	$	0.14			47
Options canceled	(147,233)	$	8.37			37
Options outstanding at December 31, 2025	2,394,503	$	10.79	6.9	$	777
Options exercisable at December 31, 2025	2,059,481	$	11.88	6.6	$	528

The weighted average grant date fair value of stock options granted during the years ended December 31, 2025 and 2024 was $1.76 and $5.16, respectively. During the year ended December 31, 2025, the Company received no substantial cash proceeds from the exercises of stock options. For the year ended December 31, 2024, the Company received no cash proceeds from the exercises of stock options. As of December 31, 2025, there was unrecognized stock-based compensation expense related to unvested stock option awards, related to service-based options of $1.1 million, which will be recognized over a remaining weighted-average period of 1.1 years.

During the years ended December 31, 2025 and 2024, the Company issued 220,000 and 870,494 options, respectively. Under the grant agreements for the 2025 stock option grants, all of the options vest in substantially equal quarterly installments over two years from the date of grant. Under the grant agreements for the 2024 stock option grants, 382,282 of the options vested immediately and 468,212 of the options vest in substantially equal quarterly installments over two years from the date of grant.

The assumptions utilized in the fair value calculations for stock options granted during the years ended December 31, 2025 and 2024, respectively, were as follows:

	Year Ended		Year Ended
	December 31, 2025		December 31, 2024
Risk-free interest rate	3.83	%	4.18	%
Expected life	5.6		5.3
Expected volatility	116	%	123	%
Expected dividend yield	—		—