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STOCKHOLDERS' EQUITY | 9 Months Ended
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Sep. 30, 2025
Equity [Abstract] |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Warrant Exercises In the first quarter of 2025, 30,380,000 pre-funded warrants issued in connection with our underwritten public offerings were net exercised, which resulted in the issuance of 30,369,830 shares of our common stock. The pre-funded warrants were issued in connection with underwritten public offerings of common stock and pre-funded warrants. There was no activity related to the pre-funded warrants during the second and third quarter of 2025. As of September 30, 2025, the following warrants remained outstanding from our offerings: •pre-funded warrants with an exercise price of $0.001 per share to purchase 29,053,145 shares of our common stock, which have no expiration date; and •stock purchase warrants with an exercise price of $1.30 per share to purchase 1,402,522 shares of our common stock, which expire on December 31, 2025. Net Loss Per Share Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of shares of common stock outstanding for the periods presented without consideration of potential common shares. In connection with previous public offerings, we issued pre-funded warrants to purchase shares of our common stock. Diluted net income per share would be calculated by adjusting the weighted-average number of shares of common stock outstanding for the dilutive effect of additional shares of common stock that would have been outstanding if potentially dilutive securities had been issued, as determined using the treasury-stock method. Potential dilutive securities consist of outstanding stock options and warrants to purchase our common stock. Diluted net loss per share excludes potential dilutive securities for all periods presented as their effect would be anti-dilutive. Accordingly, basic and diluted net loss per share is the same for all periods presented in the accompanying condensed consolidated statements of operations. Since we incurred a net loss for the three and nine months ended September 30, 2025 and 2024, the diluted net loss per share calculation excludes potential dilutive securities of 90,645,922 and 76,588,779, respectively, related to outstanding stock options and warrants as their effect would have been anti-dilutive. Stock-Based Compensation We maintain various stock incentive plans under which stock options and restricted stock awards and units can be granted to employees, non-employee directors and consultants, as applicable. We also have an employee stock purchase plan for all eligible employees. We recognize stock-based compensation expense based on grant-date fair values of service-based stock options and restricted stock units, or RS Us, on a straight-line basis over the requisite service period, which is generally the vesting period. For performance-based stock options, or PSOs, with vesting based on the achievement of certain strategic milestones, stock-based compensation expense is recognized over the period from the date the performance condition is determined to be probable of occurring through the date the applicable condition is expected to be met and is reduced for estimated forfeitures, as applicable. If the performance condition is not considered probable of being achieved, no stock-based compensation expense is recognized until such time as the performance condition is considered probable of being met, if at all. If the assessment of probability of the performance condition changes, the impact of the change in estimate would be recognized in the period of the change. The determination of grant-date fair values for our service-based and performance-based stock options and employee stock purchases using the Black-Scholes option‑pricing model is affected by our stock price as well as assumptions regarding a number of complex and subjective variables. The grant-date fair value for service-based restricted stock awards is determined using the fair value of our common stock on the date of grant. We evaluate whether an adjustment to the assumptions of fair value of our common stock and historical volatility are required if observed prices of our common stock materially differ from historical information. The following table summarizes the stock-based compensation expense included in operating expenses on our condensed consolidated statements of operations related to stock options, RSUs, and employee stock purchases for the three and nine months ended September 30, 2025 and 2024, which was allocated as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30, |  |
(In thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024 |  |  |  |
Research and development |  | $ | 2,544 |  |  | $ | 1,904 |  |  | $ | 7,461 |  |  | $ | 7,960 |  |  |  |  |
Selling, general and administrative |  | 4,197 |  |  | 4,986 |  |  | 13,427 |  |  | 16,432 |  |  |  |  |
Total stock-based compensation expense |  | $ | 6,742 |  |  | $ | 6,890 |  |  | $ | 20,888 |  |  | $ | 24,392 |  |  |  |  |
Stock-based compensation of $0.3 million and $1.0 million was capitalized to inventory for the three and nine months ended September 30, 2025, respectively, and $0.3 million and $0.4 million was capitalized to inventory for the three and nine months ended September 30, 2024. As stock-based compensation expense recognized in our condensed consolidated statements of operations for the three and nine months ended September 30, 2025 and 2024 is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures, but at a minimum, reflects the grant-date fair value of those awards that actually vested in the period. Forfeitures have been estimated at the time of grant based on historical data and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Amendment to 2018 Inducement Award Plan In August 2025, the compensation committee of our board of directors approved an amendment to our 2018 Inducement Award Plan, or 2018 Inducement Plan, to increase the total number of shares issuable under the 2018 Inducement Plan by 11,000,000 shares of our common stock, for an aggregate total reserve of 51,300,000 shares. As of September 30, 2025, an aggregate of 39,653,097 shares of our common stock have been issued under our 2018 Inducement Plan. Stock Options We grant service-based and performance-based stock options under our equity plans to employees, non-employee directors and consultants. The service-based vesting period for employee stock options is generally four years from the date of the stock option grant. PSOs vest upon the achievement of specified strategic milestones. The fair value of service-based stock options granted during the nine months ended September 30, 2025 and 2024 has been estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions:
| Nine Months Ended September 30,
| 2025 |  | 2024
Dividend yield | 0% |  | 0%
Expected volatility range | 71.42% to 74.36% |  | 82.94% to 86.68%
Risk-free interest rate range | 3.72% to 4.47% |  | 3.53% to 4.62%
Expected term | 6 years |  | 6 years
Employee Stock Purchase Plan The fair value of employees’ stock purchase rights during the nine months ended September 30, 2025 and 2024 has been estimated using the Black-Scholes option-pricing model with the following assumptions:
| Nine Months Ended September 30,
| 2025 |  | 2024
Dividend yield | 0% |  | 0%
Expected volatility range | 69.11% to 87.80% |  | 72.08% to 119.00%
Risk-free interest rate range | 3.98% to 4.29% |  | 4.79% to 5.37%
Expected term range | 6 months to 12 months |  | 6 months to 12 months
Dividend yield is based on historical cash dividend payments and Geron has paid no cash dividends to date. The expected volatility range is based on historical volatilities of our stock, since traded options on Geron common stock do not correspond to option terms and the trading volume of options is limited. The risk-free interest rate range is based on the U.S. Zero Coupon Treasury Strip Yields for the expected term in effect on the date of grant for an award. The expected term of stock options is derived from actual historical exercise and post-vesting cancellation data and represents the period of time that stock options granted are expected to be outstanding. The expected term of employees’ stock purchase rights is equal to the purchase period. Restricted Stock Units We grant service-based RSUs under our equity plans to employees. The service-based vesting period for an employee RSU is generally four years from the date of the grant. We measure the expense of the RSUs based on the grant-date fair value. Non-Employee Stock-Based Awards We measure share-based payments to non-employees based on the grant-date fair value of the equity awards. We recognize stock-based compensation expense for the fair value of the vested portion of non-employee stock-based awards on our condensed consolidated statements of operations. The following table summarizes the activity for stock options, RSUs and PSOs as of September 30, 2025:
|  | Stock Options |  | RSUs |  | PSOs
Equity awards outstanding, beginning of year |  | 71,180,260 |  |  | — |  |  | 4,787,107 |
Changes during the year |  |  |  |  |  |
Granted |  | 27,399,500 |  |  | 5,309,750 |  |  | 67,000 |
Exercised |  | (1,057,155) |  |  | — |  |  | (107,100) |
Expired or Forfeited |  | (17,672,624) |  |  | (998,750) |  |  | (503,060) |
Equity outstanding, end of period |  | 79,849,981 |  |  | 4,311,000 |  |  | 4,243,947 |
Unvested portion of equity outstanding, end of period |  | 40,354,141 |  |  | 4,311,000 |  |  | 67,000 |
As of September 30, 2025, total compensation cost related to unvested awards not yet recognized and the weighted-average periods over which the awards are expected to be recognized were as follows ($ in thousands):
|  | Stock Options |  | RSUs |  | PSOs
Unrecognized compensation cost |  | $ | 45,979,197 |  |  | $ | 6,902,172 |  |  | $ | 56,240 |
Expected weighted-average period in years of compensation cost to be recognized |  | 2.92 |  | 3.51 |  | 0.55

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- Definition The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP). + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 505 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/505/tableOfContent + Details
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