XML 25 R14.htm IDEA: XBRL DOCUMENT

Note 8 - Stock-based Compensation

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

8.	Stock-Based Compensation

2015 Equity Plan

The 2015 Equity Plan provides for increases to the number of shares reserved for issuance thereunder each January 1 equal to 4.0% of the total shares of the Company’s common stock outstanding as of the immediately preceding December 31, unless a lesser amount is stipulated by the Compensation Committee of the Company's board of directors. Accordingly, 81,531 shares were added to the reserve as of January 1, 2022, which shares may be issued in connection with the grant of stock-based awards, including stock options, restricted stock, restricted stock units, stock appreciation rights and other types of awards as deemed appropriate, in each case, in accordance with the terms of the 2015 Equity Plan. As of September 30, 2022, there were 23,664 shares available for future issuance under the 2015 Equity Plan.

The Company recorded stock-based compensation expense in the following expense categories of its unaudited interim consolidated statements of operations for the periods indicated:

		Three Months Ended September 30,								Nine Months Ended September 30,
		2022				2021				2022				2021
Research and development		$	46,704			$	18,811			$	164,489			$	111,378
General and administrative			135,177				145,581				573,653				531,574
Total stock-based compensation expense		$	181,881			$	164,392			$	738,142			$	642,952

The following table summarizes the activity related to all stock option grants for the nine months ended September 30, 2022:

		Number of Options				Weighted average exercise price per share				Weighted average remaining contractual life (in years)				Aggregate intrinsic value
Balance at January 1, 2022			72,454			$	265.91
Granted			77,088				9.87							$	6,279
Forfeited			(7,603	)			144.62
Expired			(439	)			1,575.00
Outstanding at September 30, 2022			141,500			$	128.77				8.7				—
Exercisable at September 30, 2022			68,062			$	251.37				8.0				—
Vested and expected to vest at September 30, 2022			141,500			$	128.77				8.7				—

The weighted average grant date fair value of stock option awards granted during the nine months ended September 30, 2022 was $9.87. The total fair value of options vested during the three months ended September 30, 2022 and 2021 was $0.4 million and $0.3 million, respectively. The total fair value of options vested during the nine months September 30, 2022 and 2021 was $0.7 million and $0.6 million, respectively. No options were exercised during any of the periods presented. At September 30, 2022, there was $1.0 million of unrecognized compensation expense that will be recognized over a weighted-average period of 1.67 years.

Options granted were valued using the Black-Scholes option-pricing model and the weighted average assumptions used to value the options granted during the nine months ended September 30, 2022 and 2021 were as follows:

		2022				2021
Expected term (in years)			5.7				10
Risk-free interest rate			1.7	%			1.5	%
Expected volatility			121.4	%			123.8	%
Dividend yield			—	%			—	%

Restricted Stock Awards

		Number of Units				Weighted average grant date fair value
Balance at January 1, 2022			5,509			$	34.78
Vested (1)			(1,347	)			30.93
Outstanding at September 30, 2022			4,162			$	36.02

(1) The RSUs vested during the nine months ended September 30, 2022 were settled on a hybrid basis. The Company withheld 496 shares of common stock and, in lieu of delivering such shares, paid the RSU holder an amount in cash equal to the fair market value of such shares on the vesting date, representing the holder's approximate tax liability associated with the vesting.

The Company recognized approximately $17,000 and $16,000 in expense related to these awards during the three months ended September 30, 2022 and 2021, respectively. The Company recognized approximately $49,000 and $27,000 in expense related to these awards during the nine months ended September 30, 2022 and 2021, respectively. At September 30, 2022, there was approximately $79,000 of unrecognized compensation cost that will be recognized over a weighted average period of 1.49 years.