Equity Incentive Plans

3 Months Ended

Mar. 31, 2025

Equity Incentive Plans

Equity Incentive Plans

10. Equity Incentive Plans

Stock Award Plans

The Company maintains a 2016 Equity Incentive Plan (the “2016 Plan”), which provides for the issuance of incentive share awards in the form of non-qualified and incentive stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards and performance-based stock awards. As of March 31, 2025, there were 1,892,438 shares available for issuance under the 2016 Plan.

Stock option transactions during the three months ended March 31, 2025 are presented below:

				Weighted
				Average
		Weighted		Remaining
		Average		Contractual	Aggregate
		Exercise		Term	Intrinsic
	Shares	Price		(Years)	Value (in thousands)
Outstanding at December 31, 2024	3,755,965	$	3.74	7.5	$	4
Granted	1,596,058	$	2.04		$	—
Exercised	—	$	—		$	—
Forfeited/Cancelled/Expired	(75,500)	$	4.86		$	—
Outstanding at March 31, 2025	5,276,523	$	3.21	8.1	$	—
Vested and expected to vest at March 31, 2025	5,276,523	$	3.21	8.1	$	—
Exercisable at March 31, 2025	2,411,689	$	3.91	6.6	$	—

The aggregate intrinsic value of options at March 31, 2025 is based on the Company’s closing stock price on that date of $1.46 per share.

Restricted stock unit awards transactions during the three months ended March 31, 2025 are presented below:

		Weighted Avg
		Grant Date
	Shares	Fair Value
Outstanding at December 31, 2024	220,000	$	2.73
Granted	—	$	—
Vested	(17,500)	$	3.38
Cancelled	—	$	—
Outstanding at March 31, 2025	202,500	$	2.65

Share-based Compensation

The Company estimates the fair value of stock options with performance and service conditions using the Black-Scholes valuation model (“Black-Scholes”). Compensation expense related to stock options granted is measured at the grant date based on the estimated fair value of the award and is recognized on the accelerated attribution method over the requisite service period.

The assumptions used in the Black-Scholes model during the three months ended March 31, 2025 and 2024 are presented below.

	Three Months Ended March 31,
	2025	2024
Risk-free interest rate	4.27%-4.30%	4.24%-4.25%
Expected volatility	99.64%-101.43%	89.40%-92.5%
Expected term (in years)	5.75-6.25	5.12-7.0
Expected dividend yield	0%	0%

The table below summarizes the total share-based compensation expense included in the Company’s condensed consolidated statements of operations for the periods presented (in thousands):

	Three Months Ended March 31,
	2025		2024
Research and development	$	320	$	52
General and administrative		461		482
Total stock-based compensation	$	781	$	534

As of March 31, 2025, there was $4.4 million of total unrecognized compensation expense related to unvested stock options and restricted stock units, which the Company expects to recognize over the weighted average remaining period of approximately 2.1 years.