SHARE BASED COMPENSATION

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Equity incentive plans:

As of March 31, 2022, 724,589 shares remain issuable under the 2019 Equity Incentive Plan (the "2019 Plan"). In addition, the Company maintains the 2018 Omnibus Incentive Plan (the "2018 Plan"). In January 2022, the number of shares reserved under the 2018 Plan automatically increased by 750,000 shares of common stock pursuant to the terms of the 2018 Plan. As of March 31, 2022, 6,566 shares remain issuable under the 2018 Plan.

Employee Share Purchase Plan:

The Company also has an Employee Share Purchase Plan ("ESPP") pursuant to which qualified employees (as defined in the ESPP) may elect to purchase designated shares of the Company’s common stock at a price equal to 85% of the lesser of the fair market value of the common stock at the beginning or end of each semi-annual share purchase period (“Purchase Period”). Employees are permitted to purchase the number of shares purchasable with up to 15% of the earnings paid (as such term is defined in the ESPP) to each of the participating employees during the Purchase Period, subject to certain limitations under Section 423 of the U.S. Internal Revenue Code.

As of March 31, 2022, 2,232,207 shares remain available for grant under the ESPP.

There were no shares of common stock purchased by employees pursuant to the ESPP during the three months ended March 31, 2022 or March 31, 2021.

Options and RSUs granted to employees and directors:

In the three months ended March 31, 2022, the Company granted options and RSUs as follows:

Three months ended March 31, 2022

Award
amount

Exercise price
range

Vesting period

Expiration

Employees and Directors:

Options

774,503

$0.61

2 years - 4 years

10 years

RSUs

726,102

—

4 years - 4 years

—

The fair value of options and RSUs granted to employees and directors during the three months ended March 31, 2022 and the three months ended March 31, 2021 was $0.8 million and $7.5 million, respectively.

The fair value of RSUs granted is based on the share price on the grant date.

The fair value of options granted was computed using the Black-Scholes model. The underlying data used for computing the fair value of the options are as follows:


	Three months ended March 31
	2022		2021
Dividend yield	0	%	0	%
Expected volatility	74.40	%	68.38% - 69.12%
Risk-free interest rate	2.2%		0.50% - 1.05%
Expected term	6 years		6 years

Stock-based compensation expense is reflected in the unaudited condensed consolidated statements of operations as follows:


	Three months ended March 31
(in thousands)	2022		2021
Research and development expenses	$	229	$	458
Selling, general and administrative	1,016		1,602
Discontinued operations	(352)		382
Total	$	893	$	2,442