In June 2020, the Company’s board of directors adopted the 2020 Stock Option and Incentive Plan (the “2020 Plan”) and reserved 2.93 million shares of common stock for issuance under this plan. The 2020 Plan includes automatic annual increases. The increase on January 1, 2021 was 2.08 million shares. As of September 30, 2021, 1.5 million shares remain available for future grant.

The 2020 Plan authorizes the board of directors or a committee of the board to grant incentive stock options, nonqualified stock options and restricted stock awards to eligible officers, employees, consultants and directors of the Company. Options generally vest over a period of four years and have a contractual life of ten years from the date of grant.

Stock-based compensation expense for the nine months ended September 30, 2021 and 2020 was classified in the condensed consolidated statement of operations as follows:


	Nine Months Ended September 30,
	2021		2020
	(000’s)

Research and development	$	476	$	486
General and administrative		2,367		2,480
Total	$	2,843	$	2,966

As of September 30, 2021, remaining unrecognized compensation cost related to options and restricted stock awards to be recognized in future periods totaled $8.6 million.

Prior to the adoption of the 2020 Plan, the Company issued restricted stock. A summary of the Company’s restricted stock activity during the nine months ended September 30, 2021 is as follows:


	Shares			Fair Value
Weighted Average Fair Value	(000’s)			Per Share
Unvested, December 31, 2020		896		$	1.78
Granted		—		$	—
Vested		(273	)	$	1.82
Forfeited or canceled		(63	)	$	1.62
Unvested, September 30, 2021		560		$	1.78

As of September 30, 2021, the total unrecognized compensation cost related to stock compensation expense for restricted stock is $1.0 million, expected to be recognized over a weighted average period of 1.9 years.

The following table summarizes the stock option activity for the 2020 Plan:


				Weighted		Weighted
	Number of			Average		Average
	Unvested			Exercise		Remaining
	Options			Price		Contractual
	(000’s)			Per Share		Life (in years)
Outstanding at December 31, 2020		2,159		$	5.00		9.1
Granted		1,647		$	5.15		9.5
Exercise		—		$	5.00		—
Forfeited/cancelled		(286	)	$	5.00		—
Outstanding at September 30, 2021		3,520		$	5.07		9.2
Vested at September 30, 2021		1,208		$	5.00		8.9

For the nine months ended September 30, 2021, the weighted average grant date fair value for options granted was $3.82. There was no intrinsic value for options vested and outstanding as of September 30, 2021. As of September 30, 2021, stock option expense for options is expected to be recognized over a weighted average period of 2.9 years. As of September 30, 2021, the total unrecognized compensation cost related to outstanding options was $7.6 million, expected to be recognized over a weighted average period of 2.1 years. The total unrecognized compensation cost related to outstanding restricted stock and stock options was $8.6 million.

For the nine months ended September 30, 2020, the weighted average grant date fair value for options granted was $3.42. There was no intrinsic value for options vested and outstanding as of and for the nine months ended September 30, 2020.

The weighted average assumptions used in the Black-Scholes pricing model to determine the fair value of stock options granted during the nine months ended September 30, 2021 and 2020 were as follows:


	Nine Months Ended
	September 30,
	2021			2020
Expected term (in years)		6.1			6.0
Risk-free rate		0.79	%		0.36	%
Expected volatility		90	%		140	%