Note 16 - Stock-based Compensation

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

NOTE 16: STOCK-BASED COMPENSATION

On March 24, 2020, the Board approved the adoption of the 2020 Stock Incentive Plan (the 2020 Plan) to provide for the grant 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 the date that is 10 years from the date of stockholder approval. An aggregate of 3,000 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 shares available for issuance under the 2020 Plan. 1,979 shares were available for future grants under the 2020 Plan as of September 30, 2023.

On September 28, 2010, the Board approved the adoption of the 2010 Stock Option and Incentive Plan (the 2010 Plan) to provide for the grant of equity-based awards to employees, officers, non-employee directors and other key persons providing services to the Company. Awards of incentive stock options could be granted under the 2010 Plan until September 2020. Awards may no longer be granted under this plan.

The Company did not grant options to purchase shares of common stock during the three months ended September 30, 2023. The Company granted 6,691 options to purchase shares of common stock under the 2020 Plan to employees and directors during the nine months ended September 30, 2023.  For the three and nine months ended September 30, 2022, the Company granted 30 and 3,879 options, respectively. The weighted average grant date fair value of options granted during the nine months ended  September 30, 2023 was $0.69. The weighted average grant date fair value of options granted during the three and nine months ended September 30, 2022 was $0.92 and $0.99, respectively. There were no stock options exercised during the three and nine months ended September 30, 2023 and 2022.

                     The Company recognized stock-based compensation expense, which was included under the following captions in the Condensed Consolidated Statements of Operations:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
General and administrative	$	602	$	1,042	$	2,813	$	3,366
Research and development		324		624		1,289		1,877
Total stock compensation expense	$	926	$	1,666	$	4,102	$	5,243

In accordance with the May 26, 2023 severance agreement with the Company's former General Counsel and Chief Financial Officer (CFO), fifty percent of the shares of common stock underlying the CFO's then unvested options accelerated upon his termination. For the nine months ended September 30, 2023, the Company recorded $320 of compensation expense related to these options. In accordance with his severance agreement, the CFO's vested options do not expire until the end of their contractual term. The Company is also obligated to pay $554 over the six month period ending in December 2023 for salary and bonus to the CFO in accordance with his severance agreement. 

Options issued and outstanding as of  September 30, 2023 and related activities during the nine months ended September 30, 2023 were as follows:

	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		$	2.35
Granted		6,691		$	0.82			$	27
Exercised		-			-
Forfeited		(419	)	$	0.90
Expired		(4	)	$	870.40
Outstanding as of September 30, 2023		20,174		$	1.68		7.86	$	117
Exercisable as of September 30, 2023		13,704		$	2.04		7.13	$	24
Vested and expected to vest		20,174		$	1.68		7.86	$	117

On September 30, 2023, there were 6,470 unvested options outstanding, and the related unrecognized total compensation cost associated with these options was $4,372. This expense is expected to be recognized over a weighted-average period of 2.28 years from September 30, 2023.