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Stock-Based Compensation | 12 Months Ended
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Dec. 31, 2023
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | Note 11. Stock-Based Compensation Stock Option Plans On June 21, 2023, the Company held its Annual Meeting of Stockholders (the “Annual Meeting”). At the Annual Meeting, the Company’s stockholders approved an amendment to the Company’s 2020 Long Term Incentive Plan (the “2020 Plan”). The 2020 Plan, as amended, (i) reflects an increase in the limit on the aggregate number of shares of the Company’s common stock that may be delivered pursuant to all awards granted under the 2020 Incentive Plan by an additional 9,600,000 shares so that the new aggregate share limit under the 2020 Plan is 14,460,000 shares, and (ii) extends the date through which the Company may grant new awards under the 2020 Plan from November 15, 2030 to April 26, 2033. In 2023, the Company issued stock option awards to its employees with both time-based and performance-based vesting requirements totaling 7,381,857 stock options, with 1,476,372 of the granted stock options subject to the Company’s customary time-based vesting schedule. The remaining 5,905,485 stock options granted are subje ct to both customary time-based vesting requirements and performance-based vesting requirements that are based on the same clinical development milestones applicable to the second and third closings of the Private Placement as specified in the Securities Purchase Agreement. Further, for the performance-based stock options granted to senior management, upon such second and third closing, a full or prorated amount of each closing shall vest based on the percentage of funding received relative to the total funding opportunity represented by the purchasers' second and third closing subscription amounts. No specified clinical development milestones were achieved during the year ended December 31, 2023. The 2014 Plan was closed to new grants following the approval of the 2020 Plan, and therefore, there were no shares reserved for issuance under the 2014 Plan as of December 31, 2023. The number of shares reserved for issuance under the 2020 Plan and ESPP was 3,093,742 and 24,077 shares, respectively, as of December 31, 2023. The following table summarizes all option activity under the 2007 Plan, 2014 Plan, 2020 Plan and inducement grants:
|  | Shares Issuable Under Options |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Term |  |  | Aggregate Intrinsic Value (in thousands) |
|  |  |  |  |  |  |  | (In years) |  |  |  |
Outstanding as of January 1, 2022 |  |  | 4,213,977 |  |  | $ | 10.33 |  |  |  | 8.4 |  |  | $ | — |
Granted |  |  | 1,267,700 |  |  |  | 3.81 |  |  |  | — |  |  |  | — |
Forfeited / Canceled |  |  | (263,644 | ) |  |  | 12.12 |  |  |  | — |  |  |  | — |
Outstanding as of December 31, 2022 |  |  | 5,218,033 |  |  | $ | 8.69 |  |  |  | 8.1 |  |  | $ | — |
Granted |  |  | 11,026,451 |  |  |  | 2.10 |  |  |  | — |  |  |  | — |
Forfeited / Canceled |  |  | (862,631 | ) |  |  | 8.07 |  |  |  | — |  |  |  | — |
Outstanding as of December 31, 2023 |  |  | 15,381,853 |  |  | $ | 4.21 |  |  |  | 8.9 |  |  | $ | 235 |
Options vested and expected to vest as of December 31, 2023 |  |  | 9,476,369 |  |  | $ | 5.40 |  |  |  | 8.2 |  |  | $ | 235 |
Options exercisable as of December 31, 2023 |  |  | 4,065,023 |  |  | $ | 8.54 |  |  |  | 7.0 |  |  | $ | — |
Intrinsic value is calculated as the difference between the exercise price of the underlying options and the fair value of the common stock for the options that had exercise prices that were lower than the fair value per share of the common stock on the date of exercise. There was no aggregate intrinsic value of options exercised during the year ended December 31, 2023. The Company estimates the fair value of stock option awards on the grant date using the Black-Scholes option pricing model with the following weighted-average assumptions:
|  | Year Ended December 31,
|  | 2023 |  | 2022
Expected stock price volatility |  | 90.5% |  | 83.9%
Risk-free interest rate |  | 3.7% |  | 2.0%
Expected life of options |  | 6.08 years |  | 6.27 years
Estimated dividend yield |  | 0% |  | 0%
The per share weighted average grant date fair value of stock options granted during the years ended December 31, 2023 and 2022 wa s $1.60 and $2.76, r espectively. Restricted Stock Units The following table shows the RSU activity, as follows:
|  | Shares Issuable Under RSUs |  |  | Weighted Average Grant Date Fair Value |
|  |  |  |  | (In years) |
Outstanding as of January 1, 2022 |  |  | 20,000 |  |  | $ | 5.07 |
Granted |  |  | 15,000 |  |  |  | 2.47 |
RSUs Vested |  |  | (20,000 | ) |  |  | 5.07 |
Forfeited / Canceled |  |  | — |  |  |  | — |
Outstanding as of December 31, 2022 |  |  | 15,000 |  |  | $ | 2.47 |
Granted |  |  | — |  |  |  | — |
RSUs Vested |  |  | (15,000 | ) |  |  | 2.47 |
Forfeited / Canceled |  |  | — |  |  |  | — |
Outstanding as of December 31, 2023 |  |  | — |  |  | $ | — |
Stock-based Compensation Expense Total compensation expense related to all of the Company’s stock-based awards for the years ended December 31, 2023 and 2022 was comprised of the following (in thousands):
|  | Year Ended December 31, |
|  | 2023 |  |  | 2022 |
Stock-based compensation classified as: |  |  |  |  |  |
Research and development expense |  | $ | 1,491 |  |  | $ | 3,230 |
General and administrative expense |  |  | 5,054 |  |  |  | 4,923 |
Total stock-based compensation expense |  | $ | 6,545 |  |  | $ | 8,153 |
As of December 31, 2023, total unrecognized stock-based compensation expense related to non-vested equity awards was $12.4 million, which is expected to be recognized over an estimated weighted-average period of 2.4 years.

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