Stock-Based Compensation

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

9. Stock-Based Compensation

As of June 30, 2022, the Company maintains three equity compensation plans, the PepGen Inc. 2020 Stock Plan, or 2020 Plan, the 2022 Stock Option and Incentive Plan, or 2022 Plan, and the 2022 Employee Stock Purchase Plan, or ESPP. The 2022 Plan replaced the 2020 Plan, and the Company will not make additional awards under the 2020 Plan. As of June 30, 2022, 1,114,975 shares remain available for issuance under the 2022 Plan and 226,000 shares remain available for issuance under the ESPP.

Stock Option Activity

Stock option activity under the 2020 Plan and 2022 Plan, is as follows:

	Stock Options			Weighted-Average Exercise Price
Outstanding as of December 31, 2021		1,898,084		$	7.46
Granted		1,321,986		$	11.90
Exercised		—		$	—
Canceled/Forfeited		(14,692	)	$	8.80
Outstanding as of June 30, 2022		3,205,378		$	9.29

The weighted-average grant date fair value of options granted during the six months ended June 30, 2022 was $7.82 per share.

Stock-Based Compensation Expense

Stock based compensation expense recognized for stock option grants included in the accompanying condensed consolidated statements of operations and comprehensive loss is as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Research and development	$	372	$	17	$	628	$	40
General and administrative		857		312		1,415		477
Total stock-based compensation expense	$	1,229	$	329	$	2,043	$	517

As of June 30, 2022, total unrecognized compensation cost related to unvested share options was approximately $16.8 million, which is expected to be recognized over a weighted-average period of approximately 3.5 years.