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STOCK-BASED COMPENSATION
 3 Months Ended
Mar. 31, 2025
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
The Company’s Board of Directors adopted, and the Company’s stockholders approved, the 2017 Equity Incentive Plan (“2017 Plan”), which became effective on May 4, 2017. The initial reserve of shares of common stock issuable under the 2017 Plan was 3,052,059 shares. The 2017 Plan provides for the grant of incentive stock options, non-statutory stock options, restricted stock awards, restricted stock unit awards, stock appreciation rights, performance-based stock awards, and other forms of stock-based awards. Additionally, the 2017 Plan provides for the grant of performance cash awards. The Company’s employees, officers, directors, consultants and advisors are eligible to receive awards under the 2017 Plan. Following the adoption of the 2017 Plan, no further awards will be granted under the Company’s prior plan. Pursuant to the terms of the 2017 Plan, on each January 1st, the plan limit shall be increased by the lesser of (x) 5% of the number of shares of common stock outstanding as of the immediately preceding December 31 and (y) such lesser number as the Board of Directors may determine at its discretion. On January 1, 2025, no additional shares were reserved for issuance under the 2017 Plan. As of March 31, 2025, there were 3,673,349 shares of the Company’s common stock reserved and available for issuance under the 2017 Plan.
The Company’s Board of Directors adopted, and the Company’s stockholders approved, the 2017 Employee Stock Purchase Plan (“2017 ESPP”), which became effective on May 4, 2017. The initial reserve of shares of common stock issuable under the 2017 ESPP was 279,069 shares. The 2017 ESPP allows employees to purchase common stock of the Company at a 15% discount to the market price on designated semi-annual purchase dates. During the three months ended March 31, 2025 and 2024, 34,509 and 31,561 shares were purchased under the 2017 ESPP, respectively, and the Company recorded expense of $21,876 and $15,051, respectively. The number of shares of common stock reserved for issuance under the 2017 ESPP automatically increases on January 1 of each year, beginning on January 1, 2018 and continuing through and including January 1, 2027, by the lesser of (i) 1% of the total number of shares of the Company’s common stock outstanding on December 31 of the preceding calendar year, (ii) 550,000 shares or (iii) such lesser number of shares determined by the Board of Directors. The Board of Directors acted prior to each of January 1, 2025 and
January 1, 2024 to provide that there be no increase in the number of shares reserved for issuance under the 2017 ESPP on either such date. As of March 31, 2025, there were 248,487 shares of the Company’s common stock reserved and available for issuance under the 2017 ESPP.
The Company’s Board of Directors adopted, and the Company’s stockholders approved, the 2014 Equity Incentive Plan (“2014 Plan”), which authorized the Company to grant shares of common stock in the form of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock and restricted stock units. The 2014 Plan was terminated as to future awards in May 2017, although it continues to govern the terms of options that remain outstanding under the 2014 Plan. No additional stock awards will be granted under the 2014 Plan, and all outstanding stock awards granted under the 2014 Plan that are repurchased, forfeited, expire or are cancelled will become available for grant under the 2017 Plan in accordance with its terms. As of March 31, 2025, options to purchase 1,328,715 shares of common stock were outstanding under the 2014 Plan.
Unless specified otherwise in an individual option agreement, stock options granted under the 2014 Plan and the 2017 Plan generally have a ten-year term and a four-year graded vesting period. The vesting requirement is generally conditioned upon the grantee’s continued service with the Company during the vesting period. Once vested, all options granted are exercisable from the date of grant until they expire. The option grants are non-transferable. Vested options generally remain exercisable for 90 days under the 2017 Plan and 30 days under the 2014 Plan subsequent to the termination of the option holder’s service with the Company. In the event of the option holder’s death or disability while employed by or providing service to the Company, the exercisable period extends to 18 months or 12 months, respectively, under the 2017 Plan and six months under the 2014 Plan.
The fair value of options granted during the three months ended March 31, 2025 and 2024 was estimated using the Black-Scholes option valuation model. The inputs for the Black-Scholes option valuation model require assumptions that are detailed in the table below. The risk-free interest rates are based on the rate for U.S. treasury securities at the date of grant with maturity dates approximately equal to the expected life at the grant date. The expected life is based on the simplified method in accordance with the SEC Staff Accounting Bulletin No. Topic 14D.
The Company granted 3,190,900 and 2,672,150 stock options during the three months ended March 31, 2025 and 2024, respectively. There were 8,299,628 and 6,760,442 unvested options outstanding as of March 31, 2025 and 2024, respectively. Total expense recognized related to the stock options for the three months ended March 31, 2025 and 2024 was $1.3 million and $2.0 million, respectively. During the three months ended March 31, 2025 and 2024, the Company had no outstanding performance-based option awards and did not record any related expense in those periods.
The Company granted 249,201 and 348,575 restricted stock units to employees during the three months ended March 31, 2025 and 2024.
The Company’s stock-based compensation expense was recognized in operating expenses as follows:
Three Months Ended
(in thousands)March 31, 2025March 31, 2024
Research and development$401 $529 
General and administrative883 1,439 
Total$1,284 $1,968 
Three Months Ended
(in thousands)March 31, 2025March 31, 2024
Stock options and restricted stock units$1,263 $1,953 
Employee Stock Purchase Plan22 15 
Total$1,284 $1,968 
The fair value of options granted during the three months ended March 31, 2025 and 2024 was estimated utilizing the following assumptions:
Three Months Ended
March 31, 2025March 31, 2024
Weighted
Average		Weighted
Average
Volatility86.51 %79.87 %
Expected term in years5.456.08
Dividend rate0.00 %0.00 %
Risk-free interest rate3.94 %4.28 %
Fair value of option on grant date$0.41 $2.63 
The following table summarizes the number of options outstanding and the weighted average exercise price:
 Number of Shares Weighted
Average
Exercise
Price		Weighted
Average
Remaining
Contractual
Life in Years		Aggregate
Intrinsic
Value
Options outstanding December 31, 202415,341,356 $3.49 5.87$— 
Granted3,550,900 0.63 
Exercised— — 
Forfeited or expired(197,000)2.96 
Options outstanding March 31, 202518,695,256 $2.95 6.49$— 
Vested and exercisable at March 31, 202510,395,628 $4.02 4.73$— 
At March 31, 2025, there was $9.6 million of unrecognized stock–based compensation expense related to stock option grants, which is expected to be recognized over a remaining average vesting period of 2.60 years.