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Share-Based Payment Awards | 3 Months Ended
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Mar. 31, 2025
Share-Based Payment Arrangement [Abstract] |
Share-Based Payment Awards | 9. Share-Based Payment Awards Equity Incentive Plan Prior to June 20, 2024, the Company had authorized the issuance of 9,400,000 shares of the Company’s common stock under the 2016 Long-Term Incentive Plan (the 2016 Plan), of which 373,256 shares remained available for future grants. The 2023 Long-Term Incentive Plan (the “2023 Plan”), approved by the Company’s stockholders on June 20, 2023 (the “Adoption Date”), originally provided for the issuance of up to 3,500,000 shares of the Company’s common stock reserved for issuance under the 2023 Plan plus any additional shares of the Company’s common stock that were available for grant under the 2008 and the 2016 Incentive Plan (the “2008 & 2016 Plan”) at the Adoption Date or would otherwise become available for grant under the 2008 Plan as a result of subsequent termination or forfeiture of awards under the 2008 or 2016 Plan. At the Company’s Annual Meeting of Stockholders held on June 20, 2024, the Company’s stockholders approved an amendment to the 2023 Plan to increase the number of shares authorized for issuance by 4,000,000 shares. At March 31, 2025, a total of approximately 1,785,760 shares were available for new awards under the 2023 Plan. Starting March 2022, the Company granted non-statutory stock options to new employees as inducement awards to enter into employment with the Company. The grants were approved by the Compensation Committee of the Board of Directors and awarded in accordance with Nasdaq Listing Rule 5635(c)(4). Although not awarded under any equity incentive plans, the grants are subject to and governed by the terms and conditions of the applicable plan in effect at the time of the grant. Stock Options The following table provides a reconciliation of stock option activity under the Company’s equity incentive plan and for inducement awards for the three months ended March 31, 2025:
|  | Number of Options |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Life |  |  | Aggregate Intrinsic Value |
|  |  |  |  |  |  |  | (in years) |  |  | (in thousands) |
Outstanding at January 1, 2025 |  |  | 7,670,647 |  |  | $ | 12.47 |  |  |  | 7.43 |  |  |  | 7,478 |
Granted |  |  | 2,142,935 |  |  |  | 8.21 |  |  |  |  |  |  |
Exercised |  |  | (68,779 | ) |  |  | 3.26 |  |  |  |  |  |  |
Forfeited |  |  | (187,786 | ) |  |  | 10.64 |  |  |  |  |  |  |
Expired |  |  | (162,331 | ) |  |  | 21.13 |  |  |  |  |  |  |
Outstanding at March 31, 2025 |  |  | 9,394,686 |  |  | $ | 11.46 |  |  |  | 7.80 |  |  | $ | 3,473 |
Exercisable at March 31, 2025 |  |  | 4,262,537 |  |  | $ | 12.51 |  |  |  | 6.36 |  |  | $ | 2,032 |
The Company's stock options generally vest over four years with 25% vesting after one year of service followed by ratable monthly vesting over the remaining three years. Nonemployee awards are granted similar to the Company’s employee awards. All option grants have a 10-year term. Options to purchase a total of 847,572 shares of the Company’s common stock vested during the three months ended March 31, 2025. In determining the grant date fair value of option awards during the three months ended March 31, 2025, the Company applied the Black-Scholes option pricing model based on the following key assumptions:
|  | Three Months Ended
|  | March 31,
|  | 2025
Option life (in years) |  | 5.5 - 6.08
Stock volatility |  | 99% - 102%
Risk-free interest rate |  | 3.99% - 4.45%
Expected dividends |  | 0.0%
The following table summarizes information about employee, non-executive director and external consultant stock options for the three months ended March 31, 2025 (in thousands except per share amount):
|  | Three Months |
|  | Ended |
|  | March 31, 2025 |
Weighted average grant date fair value per share |  | $ | 6.62 |
Total cash received from exercise of stock options |  |  | 224 |
Total intrinsic value of stock options exercised |  |  | 209 |
Time-Vested Restricted Stock Units Time-vested restricted stock units (RSUs) issued to date under the 2016 Plan and the 2023 Plan generally vest on a ratable annual basis over 3 years. The related stock-based compensation expense is recorded over the requisite service period, which is the vesting period. The fair value of all time-vested RSUs is based on the closing share price of the Company’s common stock on the date of grant. The following table provides a reconciliation of RSU activity under the 2016 Plan and the 2023 Plan for the three months ended March 31, 2025:
|  | Number of Restricted Stock Units |  |  | Weighted Average Grant Date Fair Value |
Nonvested at January 1, 2025 |  |  | 1,315,629 |  |  | $ | 11.74 |
Granted |  |  | 818,708 |  |  |  | 8.26 |
Vested |  |  | (561,706 | ) |  |  | 10.57 |
Forfeited |  |  | (21,097 | ) |  |  | 15.69 |
Nonvested at March 31, 2025 |  |  | 1,551,534 |  |  | $ | 10.27 |
At March 31, 2025, the weighted average remaining vesting term of the RSUs was 1.62 years. Employee Stock Purchase Plan The Company’s Employee Stock Purchase Plan (the ESPP) allows qualified participants to purchase the Company’s common stock twice a year at 85% of the lesser of the average of the high and low sales price of the Company’s common stock on (i) the first trading day of the relevant offering period and (ii) the last trading day of the relevant offering period. The number of shares of the Company’s common stock each employee may purchase under this plan, when combined with all other employee stock purchase plans, is limited to the lower of an aggregate fair market value of $25,000 during each calendar year, or 5,000 shares of the Company’s common stock in any one offering period. The Company has maintained consecutive six-month offering periods since August 1, 2019. During the three months ended March 31, 2025, 55,283 shares of the Company’s common stock were issued pursuant to the ESPP. The Company estimated the fair value of the option component of the ESPP shares at the date of grant using a Black-Scholes valuation model. During both the three months ended March 31, 2025 and 2024, the compensation expense from ESPP shares was approximately $0.1 million. Stock-Based Compensation Expense The Company’s condensed consolidated statements of comprehensive loss included total compensation expense from stock-based payment awards as follows (in thousands):
|  | Three Months Ended March 31, |
|  | 2025 |  |  | 2024 |
Compensation expense included in: |  |  |  |  |  |
Research and development |  | $ | 3,464 |  |  | $ | 7,827 |
General and administrative |  |  | 4,356 |  |  |  | 4,872 |
|  | $ | 7,820 |  |  | $ | 12,699 |
At March 31, 2025, there was approximately $35.2 million of unrecognized compensation expense related to outstanding equity awards under the 2023 Plan, the 2016 Plan, the inducement awards and the ESPP that is expected to be recognized as expense over a weighted average period of approximately 1.71 years.

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