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Stockholders' Equity
 6 Months Ended
Jun. 30, 2023
Stockholders' Equity  
Stockholders' Equity

Note 8 – Stockholders’ Equity

Equity Incentive Plan

On June 27, 2023, the Company’s stockholders approved an amendment to the Company’s Amended and Restated 2018 Omnibus Stock Incentive Plan, reserving an additional 1,000,000 shares of common stock for further issuance under such plan.

At-The-Market Offering

During the six months ended June 30, 2023, the Company received approximately $3.9 million in net proceeds from the sale of 1,421,936 shares of its common stock pursuant to its Sales Agreement with SVB Securities LLC (“SVB Securities”) in an ”at-the-market” offering (the “At-the-Market Offering Program”).

Stock-Based Compensation Expense

The Company records stock-based compensation expense related to stock options and restricted stock units (“RSUs”). For the three months ended June 30, 2023 and 2022, the Company recorded expense of $493,632 ($36,197 of which was included within research and development expenses and $457,435 was included within general and administrative expenses on the statements of operations) and $1,036,926 ($516,669 of which was included within research and development expenses and $520,257 was included within general and administrative expenses on the statements of operations), respectively. For the six months ended June 30, 2023 and 2022, the Company recorded expense of $1,312,696 ($411,327 of which was included within research and development expenses and $901,369 was included within general and administrative expenses on the statements of operations) and $1,945,913 ($1,017,850 of which was included within research and development expenses and $928,063 was included within general and administrative expenses on the statements of operations), respectively.

Restricted Stock Units

A summary of RSU activity during the six months ended June 30, 2023 is presented below:

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Weighted

​

​

​

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Average

​

​

Number of

​

Grant Date Value

​

    

RSUs

    

Per Share

RSUs non-vested January 1, 2023

 

172,800

​

$

1.80

Granted

 

86,205

​

 

2.32

Vested

 

(150,578)

​

 

1.80

Forfeited

 

(22,222)

​

 

1.80

RSUs non-vested June 30, 2023

 

86,205

​

$

2.32

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​

​

​

​

​

Vested RSUs undelivered June 30, 2023

 

29,611

​

$

3.68

​

To date, RSUs have only been granted to directors in accordance with the Company’s Amended and Restated 2018 Omnibus Stock Incentive Plan. The Company’s policy is to defer settlement of such RSUs until the termination of such director’s service on the Company’s board of directors. On February 28, 2023, the Company delivered 3,289 shares of common stock in respect of RSUs upon the resignation of a director. On June 16, 2023, the Company delivered 44,444 shares of common stock in respect of RSUs based on the prior resignation of two directors.

As of June 30, 2023, there was $200,000 of unrecognized stock-based compensation expense related to RSUs which will be recognized over a weighted average period of 1.0 years.

Stock Options

In applying the Black-Scholes option pricing model to stock options granted, the Company used the following approximate assumptions:

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For the Three Months Ended

​

For the Six Months Ended

​

​

June 30, 

​

June 30,

​

    

2023

    

2022

    

2023

    

2022

Expected term (years)

​

5.50 - 10.00

 

5.09 - 5.50

​

​

5.50 - 10.00

​

​

0.58 - 10.00

Risk free interest rate

​

3.44% - 4.02%

​

2.79%

​

​

3.44% - 4.18%

​

​

0.76% - 2.79%

Expected volatility

​

82% - 94%

​

88%

​

​

82% - 95%

​

​

82% - 90%

Expected dividends

​

0.00%

​

0.00%

​

​

0.00%

​

​

0.00%

​

The Company has computed the fair value of stock options granted using the Black-Scholes option pricing model. Option forfeitures are accounted for at the time of occurrence. The expected term is the estimated period of time that options granted are expected to be outstanding. The Company utilizes the “simplified” method to develop an estimate of the expected term of “plain vanilla” employee option grants. The Company uses a blended volatility calculation, the components of which are the Company’s historical volatility for the period from its initial public offering through the valuation date and the average peer-group data of six comparable entities to supplement the Company’s own historical data for the preceding years in computing the expected volatility. Accordingly, the Company is utilizing an expected volatility figure based on a review of the historical volatility of comparable entities over a period of time equivalent to the expected life of the instrument being valued. The risk-free interest rate was determined from the implied yields from U.S. Treasury zero-coupon bonds with a remaining term consistent with the expected term of the instrument being valued. The Company has not declared dividends, is currently in the development stage and has no plan to declare future dividends at this time.

The weighted average estimated grant date fair value of the stock options granted for the three months ended June 30, 2023 and 2022 was approximately $2.04 and $1.37 per share, respectively. The weighted average estimated grant date fair value of the stock options granted for the six months ended June 30, 2023 and 2022 was approximately $1.78 and $2.02 per share, respectively.

A summary of the option activity during the six months ended June 30, 2023 is presented below:

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Average

 

Remaining

 

Aggregate

​

 

Number of

 

Exercise

 

Life

 

Intrinsic

​

 

Options

 

Price

 

In Years

 

Value

Outstanding, January 1, 2023

 

5,380,553

​

$

3.55

 

  

 

​

  

Granted

 

677,190

​

 

2.39

 

  

 

​

  

Exercised

 

(88,999)

​

 

1.83

 

  

 

​

  

Forfeited/ Expired

 

(783,666)

​

​

3.88

 

​

​

​

​

Outstanding June 30, 2023

​

5,185,078

​

$

3.37

​

7.1

​

$

962,979

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​

​

​

​

​

​

​

​

​

​

Exercisable June 30, 2023

 

3,582,370

​

$

3.69

 

6.2

​

$

501,462

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The following table presents information related to stock options as of June 30, 2023:

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Options Outstanding

 

Options Exercisable

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​

​

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Weighted

​

​

​

​

 

Outstanding

 

Average

 

Exercisable

Exercise

 

Number of

 

Remaining Life

 

Number of

Price

    

Options

    

In Years

    

Options

​

$1.00 - $1.99

 

1,407,183

​

4.7

 

884,183

​

$2.00 - $2.99

 

1,473,663

​

6.9

 

844,473

​

$3.00 - $3.99

 

908,528

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6.8

 

694,510

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$4.00 - $4.99

 

350,500

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8.1

 

216,178

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$5.00 - $5.99

 

50,805

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4.3

 

50,638

​

$6.00 - $6.99

 

843,759

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6.5

 

741,748

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$7.00+

 

150,640

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4.8

 

150,640

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​

​

5,185,078

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6.2

​

3,582,370

​

As of June 30, 2023, there was $2,868,023 of unrecognized stock-based compensation expense related to stock options, which will be recognized over a weighted average period of 1.7 years.