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Note 8- Stock-based Compensation

6 Months Ended

Jun. 30, 2023

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, 81,582 shares were added to the reserve as of January 1, 2023, 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 June 30, 2023, there were 160,254 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 and comprehensive loss for the periods indicated:

		Three Months Ended June 30,								Six Months Ended June 30,
		2023				2022				2023				2022
Research and development		$	—			$	58,892			$	12,011			$	117,785
General and administrative			60,665				219,238				170,025				438,476
Total stock-based compensation expense		$	60,665			$	278,130			$	182,036			$	556,261

The following table summarizes the activity related to all stock option grants for the six months ended June 30, 2023:

		Number of Options				Weighted average exercise price per share				Weighted average remaining contractual life (in years)				Aggregate intrinsic value
Balance at January 1, 2023			140,040			$	126.75
Granted			—				—
Cancelled			(54,079	)			22.04
Outstanding at June 30, 2023			85,961			$	192.65				7.65			$	—
Exercisable at June 30, 2023			68,344			$	238.46				7.42			$	—
Vested and expected to vest at June 30, 2023			85,961			$	192.65				7.65			$	—

There were no options granted during the six months ended June 30, 2023. The total fair value of options vested during the three months ended June 30, 2023 and 2022 was $0.1 million and $0.3 million, respectively. The total fair value of options vested during the six months ended June 30, 2023 and 2022 was $0.2 million and $0.5 million, respectively. No options were exercised during any of the periods presented. At June 30, 2023, there was $0.2 million of unrecognized compensation expense that will be recognized over a weighted-average period of 1.12 years.

Restricted Stock Unit Awards

The Company previously issued restricted stock units (each, an "RSU") to newly elected, non-executive members of the board of directors that vest in six, tri-monthly installments beginning 18 months after the respective grant date. The fair value of an RSU is equal to the fair market value price of the Company’s common stock on the date of grant. RSU expense is recorded on a straight-line basis over the service period.

The following table summarizes activity related to RSU awards during the period indicated:

		Number of Units				Weighted average grant date fair value
Balance at January 1, 2022			3,652			$	36.49
Vested (1)			(1,157	)			36.04
Outstanding at June 30, 2023			2,495			$	37.57

(1) The RSUs vested during the six months ended June 30, 2023 were settled on a hybrid basis. The Company withheld 512 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 an insignificant amount in expense related to these awards and $16,000 in expense related to these awards during the three months ended June 30, 2023 and June 30, 2022, respectively. The Company recognized an insignificant amount and $32,000 in expense related to these awards during the six months ended June 30, 2023 and 2022, respectively. At June 30, 2023, there was $19,000 in unrecognized compensation cost that will be recognized over a weighted average period of 0.88 years.