Stock-Based Compensation

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Note 8—Stock-Based Compensation

Stock-based compensation expense, which includes expense for both employees and non-employees, has been reported in the Company’s condensed statements of operations for the three and six months ended June 30, 2022 and 2021 as follows (in thousands):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2022		2021		2022		2021
Research and development	$	340	$	425	$	757	$	723
General and administrative		745		1,423		1,644		2,528
Total stock-based compensation	$	1,085	$	1,848	$	2,401	$	3,251

Stock Options

The following table summarizes the Company’s stock option activity for the six months ended June 30, 2022:

						Weighted average
				Weighted average		remaining contractual		Aggregate intrinsic
	Number of shares			exercise price		life (in years)		value
Outstanding as of December 31, 2021		3,443,817		$	10.05		7.8	$	3,952,803
Granted		433,536			7.49
Exercised		—
Forfeitures		(406,622	)		10.36
Expired		(35,086	)		13.75
Outstanding as of June 30, 2022		3,435,645		$	9.66		7.1	$	60,501
Options vested and exercisable as of    June 30, 2022		2,126,509		$	9.10		6.2	$	60,501

As of June 30, 2022, the total unrecognized compensation related to unvested stock option awards granted was $9.2 million, which the Company expects to recognize over a weighted-average period of 2.59 years.

Restricted Stock

In November 2019 and August 2020, the Company granted 300,000 and 250,000 restricted stock units, respectively to its executive officers. As of June 30, 2022, 425,000 restricted stock units were outstanding. The restricted stock units vest 50% upon receipt of regulatory approval of the Company’s new drug application for VP-102 for the treatment of molluscum (the “Approval Date”) and 50% shall vest on the one year anniversary of the Approval Date subject to the holders’ continuous service through each applicable date.

The following is a summary of changes in the status of non-vested RSUs:

			Weighted Average
			Grant Date Fair
	Number of Shares		Value
Nonvested as of December 31, 2021		425,000	$	11.68
Granted		—		—
Forfeitures		—		—
Nonvested as of June 30, 2022		425,000	$	11.68

No compensation expenses have been recognized for these nonvested restricted stock units as these shares are performance based and the triggering event was not determined to be probable as of June 30, 2022. As of June 30, 2022, the total unrecognized compensation expense related to the restricted stock units was $5.0 million.