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STOCK BASED COMPENSATION
 3 Months Ended
Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]  
STOCK BASED COMPENSATION

 

8. STOCK BASED COMPENSATION

 

In May 2017, the Company’s shareholders approved its 2017 Stock Incentive Plan (“2017 Plan”) after its 2007 Stock Incentive Plan (“2007 Plan”) had expired in March 2017. The 2017 Plan provides for the grant of non-qualified stock options and incentive stock options to purchase shares of the Company’s common stock and for the grant of restricted and unrestricted shares. The 2017 Plan provides for the issuance of 3,750,000 shares of common stock. In May 2023, the Company’s shareholders approved its 2023 Stock Incentive Plan (“2023 Plan”). The 2023 plan provides for the issuance of 2,000,000 shares of common stock. All employees and employees of any subsidiary (including officers and directors who are also employees), as well as all of the nonemployee directors and other consultants, advisors and other persons who provide services to the Company are eligible to receive incentive awards under the 2017 Plan and 2023 Plan. Generally, stock options and restricted stock issued under the 2017 Plan and 2023 Plan vest over a period of one to four years from the date of grant. As of March 31, 2024, approximately 1.4 million shares remain available for issuance under both available plans.

 

The following table summarizes the stock-based compensation expense recorded in the Company’s results of operations during the three months ended March 31, 2024 and 2023 for stock options and restricted stock granted under the Company’s incentive plans (in thousands):

        
   Three Months Ended
March 31,		 
   2024   2023 
Research and development  $377   $328 
General and administrative   583    525 
Selling and Marketing   64    74 
Total  $1,024   $927 

 

As of March 31, 2024, there was approximately $8.6 million of total unrecognized compensation expense related to unvested share-based compensation arrangements. This cost is expected to be recognized over a weighted-average period of 3.1 years.

 

The weighted average grant date fair value per share of the options granted under the Company’s Plans were $4.98 and $4.95 for the three March 31, 2024 and 2023, respectively.

 

The following table summarizes stock option activity during the three months ended March 31, 2024 (in thousands except exercise prices and contractual terms):

                
  

Number of

Shares

  

Weighted-

Average

Exercise

Prices per Share

  

Weighted-
Average

Remaining

Contractual

Term (In Years)

   Intrinsic
Value		 
Outstanding at January 1, 2024   3,369   $7.04           
Granted   366   $6.46           
Exercised   (13)  $6.60           
Forfeited   (52)  $10.43           
Outstanding at March 31, 2024   3,670   $6.93    4.82   $2,093 
Exercisable at March 31, 2024   2,926   $6.68    3.70   $2,093 

 

During the three months ended March 31, 2024, the Company granted options under the 2017 and 2023 Plans to purchase approximately 366,000 shares of its common stock to its employees and consultants. The fair value of these options was approximately $1.8 million at the time of grant.

  

The Company issues restricted stock to employees, directors and consultants and estimates the fair value based on the closing price on the day of grant. The following table summarizes all restricted stock activity during the three months March 31, 2024 (in thousands except per share data):

        
  

Number of

Shares

  

Weighted-Average

Grant Date Fair Value per Share

 
Outstanding at January 1, 2024   419   $9.21 
Granted   275   $6.46 
Forfeited   (20)  $8.24 
Vested   (54)  $8.35 
Outstanding non-vested shares at March 31, 2024   620   $8.09 

 

During the three months ended March 31, 2024, the Company granted approximately 275,000 restricted stock awards under the 2017 and 2023 Plans. The fair value of these awards was approximately $1.8 million at the time of grant.