Stock Based Compensation

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Share-Based Payment Arrangement [Text Block]

NOTE 14: STOCK BASED COMPENSATION

On May 15, 2020, the stockholders of the Company approved the 2020 Stock Incentive Plan (the 2020 Plan) to provide for the grants of equity-based awards to employees, officers, non-employee directors and other key persons providing services to the Company. No awards may be granted under the 2020 Plan after May 15, 2030. An aggregate of 3,000,000 shares of common stock was initially reserved for issuance in connection with awards granted under the 2020 Plan. On May 14, 2021, the stockholders approved an additional 15,000,000 shares available for issuance under the 2020 Plan. As of December 31, 2023, 4,646,686 shares were available for future grants under the 2020 Plan.

The Company granted 6,828,600 and 4,079,667 options to purchase shares of common stock to employees and directors during the years ended December 31, 2023 and 2022, respectively. The weighted average grant date fair value of options granted during 2023 and 2022 was $0.69 and $0.96, respectively. No options were exercised during the years ended December 31, 2023 or 2022.

The fair values of stock options granted were calculated using the Black-Scholes option-pricing model applying the following assumptions:

	Year Ended December 31,
	2023		2022
Risk-free interest rate	3.27% - 4.48%		1.86% - 3.56%
Expected term (in years)	5.31 - 6.16		5.19 - 6.11
Dividend yield		—		—
Expected volatility	103% - 129%		103% - 128%

The Company recognized stock-based compensation expense in the Consolidated Statements of Operations as follows (in thousands):

	Year Ended December 31,
	2023		2022
General and administrative	$	3,038	$	4,395
Research and development		1,583		2,393
Total stock-based compensation expense	$	4,621	$	6,788

The following table shows a summary of all stock option activity for the year ended December 31, 2023:

	Number of Underlying Shares			Weighted- Average Exercise Price Per Share		Weighted- Average Contractual Life Remaining in Years		Aggregate Intrinsic Value
Outstanding as of January 1, 2023		13,906,358		$	2.35				—
Granted		6,828,600			0.82
Forfeited		(3,223,874	)		0.92
Exercised		—			—
Expired		(4,739	)		836.63
Outstanding as of December 31, 2023		17,506,345		$	1.79		7.34	$	554,525
Exercisable as of December 31, 2023		14,568,342		$	1.97		6.99	$	233,076
Vested and expected to vest		17,506,345		$	1.79		7.34	$	554,525

As of December 31, 2023, there were 2,938,003 unvested options outstanding, and the related unrecognized total compensation cost associated with these options was $1.7 million. This expense is expected to be recognized over a weighted-average period of 1.21 years.