Share-based Compensation

3 Months Ended

Mar. 31, 2025

Share-based Compensation

Share-based Compensation

Note 8.    Share-based Compensation

2019 Incentive Award Plan

The following table summarizes stock option activity under 2019 Award Plan (unaudited):

		Weighted
		Average
	Number of	Exercise
	Shares	Price
Outstanding, January 1, 2025	47,955	$	720.00
Options granted	—		—
Options forfeited	—		—
Outstanding, March 31, 2025	47,955	$	720.00
Exercisable, March 31, 2025	43,819	$	720.00

As of March 31, 2025 and December 31, 2024, the weighted average remaining contractual life of options outstanding and options exercisable was 5.8 years and 6.0 years, respectively.

During the three months ended March 31, 2025 and March 31, 2024, the Company recognized $0.6 million and $0.8 million, respectively, of share-based compensation expense related to stock options granted.

As of March 31, 2025 and December 31, 2024, total unrecognized compensation expense related to nonvested stock options was $1.3 million and $1.8 million, respectively, which is expected to be recognized over the weighted-average remaining requisite service period of 3 months and 4 months, respectively.

The following table summarizes restricted stock units activity under the 2019 Award Plan (unaudited):

		Weighted
		Average
	Number of	Grant Date
	Shares	Fair Value
Outstanding, January 1, 2025	11,398	$	780.48
Granted	—		—
Vested	—		—
Forfeited	—		—
Outstanding, March 31, 2025	11,398	$	780.48

During the three months ended March 31, 2025 and March 31, 2024, the Company recognized $0.3 million and $0.4 million, respectively, of share-based compensation expense related to restricted stock units granted.

As of March 31, 2025 and December 31, 2024, total unrecognized compensation expense related to nonvested restricted stock units was $2.6 million and $3.0 million, respectively, which is expected to be recognized over the weighted-average remaining requisite service period of 19 months and 21 months, respectively. The unrecognized compensation expense with the earnout criteria as of March 31, 2025 and December 31, 2024 of $4.2 million and $4.3 million, respectively, will be recognized when the milestones are determined to be probable over the RSUs vesting term, calculated as the period from the date the milestone was determined to be probable and the expected achievement date of the milestone.

2023 Incentive Award Plan

As of March 31, 2025, there were 40,398 shares of common stock available for issuance under the 2023 Award Plan. The following table summarizes stock options activity under the 2023 Award Plan (unaudited):

		Weighted
		Average
	Number of	Exercise
	Shares	Price
Outstanding, January 1, 2025	51,016	$	242.14
Options granted	—		—
Options forfeited	—		—
Outstanding, March 31, 2025	51,016	$	242.14
Exercisable, March 31, 2025	18,280	$	78.93

The weighted average fair value of options granted as of December 31, 2024 was $135.50. The weighted average remaining contractual life of options outstanding and options exercisable as of March 31, 2025 and December 31, 2024 was 9.2 years and 9.5 years, respectively.

During the three months ended March 31, 2025 and March 31, 2024, the Company recognized $0.6 million and $0.1 million, respectively, of share-based compensation expense related to stock options granted. As of March 31, 2025 and December 31, 2024, total unrecognized compensation expense related to nonvested stock options was $4.7 million and $5.3 million, respectively, which is expected to be recognized over the weighted-average remaining requisite service period of 16 months and 19 months, respectively.

The following table summarizes restricted stock units activity under the 2023 Award Plan (unaudited):

		Weighted
		Average
	Number of	Grant Date
	Shares	Fair Value
Outstanding, January 1, 2025	14,215	$	60.05
Granted	—		—
Vested	—		—
Forfeited	—		—
Outstanding, March 31, 2025	14,215	$	60.05

During the three months ended March 31, 2025 and March 31, 2024, the Company recognized $0.1 million and zero of share-based compensation expense related to restricted stock units granted.

As of March 31, 2025 and December 31, 2024, total unrecognized compensation expense related to nonvested restricted stock units was $0.6 million and $0.7 million, respectively, which is expected to be recognized over the weighted-average remaining requisite service period of 17 and 20 months, respectively.

Share-based Compensation Expense and Valuation Information

The Company accounts for the measurement and recognition of compensation expense for all share-based awards based on the estimated fair value of the awards. The fair value of share-based awards is amortized on a straight-line basis over the requisite service period. The Company records share-based compensation expense net of actual forfeitures.

During the three months ended March 31, 2025 and March 31, 2024, the Company recognized $1.7 million and $1.6 million, respectively, of share-based compensation expense, of which $1.3 million and $1.2 million, respectively, were in selling, general and administrative expenses, and $0.4 million and $0.4 million, respectively, were in research and development expenses in the accompanying condensed consolidated statements of operations and comprehensive income (loss).

The fair value of stock options granted under the Award Plan was estimated using the following assumptions:

	Three Months Ended
	March 31,
	2025	2024
Expected volatility	—	47% – 50%
Risk-free interest rate	—	4.1% – 4.3%
Expected life (in years)	—	5.27 – 6.25
Expected dividend yield	—	—