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Stock-based Compensation | 6 Months Ended
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Jun. 30, 2024
Share-Based Payment Arrangement [Abstract] |
Stock-based Compensation | 10. Stock-based Compensation The Company grants stock-based awards under its 2023 Stock Option and Incentive Plan (the "2023 Plan"), which was approved by the Company’s stockholders in November 2023 and became effective in November 2023 in connection with completion of the Merger. The Company also has outstanding stock option awards under the "Legacy Korro 2019 Plan", the Frequency 2014 Stock Incentive Plan (the "2014 Plan"), the 2019 Incentive Award Plan (the "Frequency 2019 Plan"), but is no longer granting awards under these plans. The Company also has the option to grant awards under the 2023 Employee Stock Purchase Plan (the "2023 ESPP"), which was approved by the Company’s stockholders in November 2023 and became effective in November 2023 in connection with completion of the Merger. Stock-based Compensation Expense Total stock-based compensation expense recognized in the consolidated statements of operations and comprehensive loss for the three and the six months ended June 30, 2024 and 2023 was as follows (in thousands):
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Research and development |  | $ | 334 |  |  | $ | 157 |  |  | $ | 613 |  |  | $ | 246 |
General and administrative |  |  | 633 |  |  |  | 244 |  |  |  | 1,219 |  |  |  | 504 |
Total stock-based compensation expense |  | $ | 967 |  |  | $ | 401 |  |  | $ | 1,832 |  |  | $ | 750 |
Stock Option Activity The fair value of stock options granted during the six months ended June 30, 2024 and 2023 was calculated on the date of grant using the following weighted-average assumptions:
|  | Six Months Ended June 30, |
|  | 2024 |  |  | 2023 |
Risk-free interest rate |  |  | 4.3 | % |  |  | 3.6 | %
Expected dividend yield |  |  | — | % |  |  | — | %
Expected term (in years) |  |  | 6.0 |  |  |  | 6.0 |
Expected volatility |  |  | 74.6 | % |  |  | 69.5 | %
Using the Black-Scholes option pricing model, the weighted-average grant date fair value of stock options granted during the six months ended June 30, 2024 and 2023 was $32.46 and $13.87 per share, respectively. The following table summarizes changes in stock option activity during the six months ended June 30, 2024 (in thousands, except per share amounts):
|  | Options |  |  | Weighted- Average Exercise Price |  |  | Weighted- Average Remaining Contractual Term (in years) |  |  | Aggregate Intrinsic Value |
Outstanding at December 31, 2023 |  |  | 1,323,151 |  |  | $ | 23.49 |  |  |  | 8.4 |  |  | $ | 36,310 |
Granted |  |  | 122,766 |  |  | $ | 47.45 |  |  |  |  |  |  |
Exercised |  |  | (14,138 | ) |  | $ | 21.95 |  |  |  |  |  |  |
Forfeited |  |  | (82,457 | ) |  | $ | 17.85 |  |  |  |  |  |  |
Cancelled |  |  | (50,914 | ) |  | $ | 119.02 |  |  |  |  |  |  |
Outstanding as of June 30, 2024 |  |  | 1,298,408 |  |  | $ | 22.38 |  |  |  | 8.4 |  |  | $ | 20,214 |
Exercisable at June 30, 2024 |  |  | 483,542 |  |  | $ | 23.38 |  |  |  | 7.0 |  |  | $ | 8,491 |
The aggregate intrinsic value of options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock for those stock options that had exercise prices lower than the fair value of the common stock as of the end of the period. The aggregate intrinsic value of stock options exercised during the six months ended June 30, 2024 and 2023 was $0.4 million and $0.1 million, respectively. As of June 30, 2024, there was unrecognized stock-based compensation expense related to unvested stock options of $11.2 million, which the Company expects to recognize over a weighted-average period of approximately 2.9 years.

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