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Stock Based Compensation | 3 Months Ended
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Mar. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] |
Stock Based Compensation |
6. | Stock Based Compensation
2018 Omnibus Incentive Plan In June 2018, stockholders of the Company approved the Company’s 2018 Omnibus Incentive Plan (the “2018 Plan”). The 2018 Plan had previously been approved by the Company’s Board of Directors (the “Board”) and the Compensation Committee (the “Committee”) of the Board, subject to stockholder approval. The 2018 Plan became effective on June 13, 2018. Performance-Based Stock Option Grants In February 2021, the Committee approved the issuance of option grants to purchase 647,000 shares of common stock for executive officers pursuant to the 2018 Plan, which will vest upon (a) the achievement of specified performance goals and (b) the grantees’ continued employment during the service period specified in each grant. The following table summarizes stock option activity under the Company’s equity incentive plans and related information:
|  | Number of Shares Underlying Outstanding Options |  |  | Weighted- Average Exercise Price |  |  | Weighted- Average Remaining Contractual Term (Years) |
Outstanding — December 31, 2020 |  |  | 2,355,615 |  |  | $ | 8.59 |  |  |  | 7.96 |
Options granted |  |  | 939,613 |  |  | $ | 6.21 |  |  |  |  |
Options exercised |  |  | — |  |  | $ | — |  |  |  |  |
Options forfeited |  |  | (87,083 | ) |  | $ | 7.62 |  |  |  |  |
Options expired |  |  | — |  |  | $ | — |  |  |  |  |
Outstanding — March 31, 2021 |  |  | 3,208,145 |  |  | $ | 7.92 |  |  |  | 8.37 |
Exercisable — March 31, 2021 |  |  | 1,213,061 |  |  | $ | 10.18 |  |  |  |  |
Valuation Assumptions The Company estimated the fair value of stock options granted using the Black-Scholes option-pricing formula and a single option award approach. Due to its limited history as a public company and limited number of sales of its common stock, the Company estimated its volatility considering a number of factors including the use of the volatility of comparable public companies. The expected term of options granted under the Plan, all of which qualify as “plain vanilla” per SEC Staff Accounting Bulletin 107, is determined based on the simplified method due to the Company’s limited operating history. The risk-free rate is based on the yield of a U.S. Treasury security with a term consistent with the option. This fair value is being amortized ratably over the requisite service periods of the awards, which is generally the vesting period. The fair value of employee stock options was estimated using the following weighted-average assumptions for the three months ended March 3 1, 20 2 1 and 20 20:
|  | Three Months Ended March 31, |
|  | 2021 |  |  | 2020 |
Employee Stock Options: |  |  |  |  |  |  |  |
Risk-free interest rate |  |  | 0.69 | % |  |  | 1.57 | %
Expected term (in years) |  |  | 6.05 |  |  |  | 5.53 |
Dividend yield |  |  | — |  |  |  | — |
Volatility |  |  | 93.83 | % |  |  | 110.00 | %
Weighted-average fair value of stock options granted |  | $ | 4.70 |  |  | $ | 5.58 |
Total stock-based compensation recognized was as follows (in thousands):
|  | Three Months Ended March 31, |
|  | 2021 |  |  | 2020 |
Research and development |  | $ | 369 |  |  | $ | 344 |
General and administrative(1) |  |  | 657 |  |  |  | 461 |
Total stock-based compensation |  | $ | 1,026 |  |  | $ | 805 |
| (1) | Included in general and administrative stock-based compensation for the three months ended March 31, 2021 is expense related to 10,149 shares of common stock issued to certain board members in lieu of their cash compensation.
As of March 31, 2021, 391,477 shares of common stock were available for future grant and 3,208,145 options to purchase shares of common stock were outstanding. As of March 31, 2021, the Company had unrecognized employee stock-based compensation expense of $8.2 million, related to unvested stock awards, which is expected to be recognized over an estimated weighted-average period of 2.9 years.

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- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
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