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STOCK-BASED COMPENSATION
 6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
Under the Company’s stock option plans, the Board of Directors may grant restricted stock and options to purchase common shares to the Company's employees, officers, directors and consultants. The Company accounts for stock options in accordance with FASB ASC Topic 718, Compensation - Stock Compensation, with stock-based compensation expense recognized over the vesting period based on the fair value on the grant date utilizing the Black-Scholes model, which includes a number of estimates that affect the grant date fair value and the amount of expense to recognize.

The Company recognized approximately $1,050,000 and $2,178,000, respectively, in stock-based compensation expense during the three and six months ended June 30, 2024, as compared with $1,482,000 and $2,849,000, respectively, for the three and six months ended June 30, 2023.

Stock option activity is summarized as follows:
Number of optionsWeighted average exercise price
Outstanding at December 31, 2023
7,342,883 $6.31 
Granted1,468,929 2.36 
Exercised(569)2.50 
Canceled and forfeited(381,600)6.93 
Outstanding at June 30, 2024
8,429,643 $5.59 

The Company allows stock option holders to exercise stock-based awards by surrendering stock-based awards with an intrinsic value equal to the cumulative exercise price of the stock-based awards being exercised, referred to as net settlements. These surrenders are included in stock options exercised in the options rollforward above. There were no such exercises for the three months ended June 30, 2024. For the three months ended June 30, 2023, the Company received 4,305 options as payment in the exercise of 5,695 options. For the six months ended June 30, 2024 and 2023, respectively, the Company received 531 and 4,305 options as payment in the exercise of 38 and 5,695 options.

Common shares required to be issued upon the exercise of stock options would be issued from authorized and unissued shares. The Company calculated the grant date fair value of options granted in 2024 (“2024 Grants”) utilizing a Black-Scholes model.
2024 Grants
Strike price$1.27-$2.42
Risk-free rate4.0%-4.2%
Expected dividend yield—
Expected volatility92.1%-94.3%
Expected term (in years)6