On May 28, 2020, the Company adopted the 2020 Incentive Award Plan (“the 2020 Plan”), which authorized the issuance of (i) up to 3,019,108 shares of the Company’s common stock, (ii) up to 4% of an annual increase on the first day of each year beginning on January 1, 2022 and ending on January 1, 2030, and (iii) any shares of the Company’s common stock subject to awards under the 2014 Plan which are forfeited or lapse unexercised and which following the effective date are not issued under the 2014 Plan. Awards may be issued in the form of restricted stock units, restricted stock, stock appreciation rights, and stock options. On February 28, 2022, the Company registered an additional 5,483,716 shares of the Company's common stock to be issued pursuant to the 2020 Plan. As of June 30, 2022, there were 191,196 shares available for future issuance under the 2020 Plan.

On May 20, 2022, the Company adopted the 2022 Inducement Award Plan (the “Inducement Award Plan”). Awards under the Inducement Award Plan may only be granted to a newly hired employee who has not previously been an employee or a member of the Board or an employee who is being rehired following a bona fide period of non-employment by the Company, in each case as a material inducement to the employee’s entering into employment. An aggregate of 3,000,000 shares of the Company’s common stock are reserved for issuance under the Inducement Award Plan. As of June 30, 2022, there were 2,701,671 shares available for future issuance under the Inducement Award Plan.

The Company recognized $0.4 million and $0.6 million of stock-based compensation expense related to stock options for the three months ended June 30, 2022 and 2021, respectively, and $0.8 million and $1.2 million for the six months ended June 30, 2022 and 2021, respectively. As of June 30, 2022 and December 31, 2021, the Company had $2.6 million and $2.5 million, respectively, of unrecognized stock-based compensation expense that is expected to be recognized over a weighted-average period of 2.1 years and 1.7 years, respectively.

On May 9, 2022 and May 20, 2022, 600,000 stock options having a fair value of $0.83 per share were granted to the CEO and an aggregate of 650,000 stock options having a grant date fair value of $1.14 per share were granted to certain members of key management. The exercise price of the stock options is $7.50 per share. The stock options vest ratably over a three year period subject to continued employment through each applicable vesting date.

The grant date fair value of stock options granted during the three and six months ended June 30, 2022 was estimated at the time of grant using the Black-Scholes option-pricing model and utilized the following assumptions:


	May 20, 2022			May 9, 2022
Fair value of common stock (per share)	$	1.14		$	0.83
Expected term (in years)	10			10
Risk-free interest rate		2.78	%		3.05	%
Expected volatility		100.00	%		100.00	%
Dividend yield	—%			—%

The Company recognized $1.4 million and $4.8 million of stock-based compensation expense related to RSUs for the three months ended June 30, 2022 and 2021, respectively, and $4.6 million and $7.0 million for the six months ended June 30, 2022 and 2021, respectively. As of June 30, 2022 and December 31, 2021, the Company had $28.1 million and $21.7 million, respectively, of unrecognized stock-based compensation expense that is expected to be recognized over a weighted-average period of 2.2 and 2.1 years, respectively.

On May 9, 2022 and May 20, 2022, 1,200,000 restricted stock units (“RSUs”) having a grant date fair value of $1.08 per share were granted to the CEO and an aggregate of 3,190,000 RSUs having a grant date fair value of $1.45 per share were granted to certain members of key management. The RSUs will vest on the third anniversary of the grant date, subject to continued employment through that date. The vesting of RSUs will accelerate in one-third increments if the Company achieves a closing price at or above $7.50 per share for twenty consecutive trading days during the three-year vesting period; a closing price at or above $15.00 per share for twenty consecutive trading days in the second or third years of the vesting period; and a closing price at or above $21.00 per share for twenty consecutive trading days during the third year of the vesting period. As of June 30, 2022, the accelerated vesting conditions were not met.