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Stock-Based Compensation | 3 Months Ended
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Mar. 31, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] |
Stock-Based Compensation | 9. Stock-based Compensation In 2017, the Company adopted the 2017 Stock Incentive Plan (the “2017 Plan”). Under the 2017 Plan, a total of 537,914 shares of the Company’s common stock were reserved for the issuance of stock options to employees, directors, and consultants under terms and provisions established by the Board of Directors (the “Board”). Under the terms of the 2017 Plan, options were granted at an exercise price not less than fair market value. The terms of options granted under the 2017 Plan may not exceed ten years. The Board determined the terms and conditions of a Restricted Stock Award, including the conditions for vesting and repurchase (or forfeiture) and the issue price, if any. On October 11, 2017, the Company increased the number of shares of common stock available for issuance under the 2017 Plan from 537,914 shares to 630,662 shares. On November 29, 2017, the Company increased the number of shares of common stock available for issuance under the 2017 Plan from 630,662 shares to 1,866,009 shares. In connection with the Company’s initial public offering completed in January 2018, the Board adopted and the Company’s stockholders approved the 2018 Stock Incentive Plan (“2018 Plan”), which became effective on the date immediately preceding the date on which the Company’s registration statement became effective. The 2018 Plan provides for the grant of incentive stock options, nonstatutory stock options, restricted stock awards, restricted stock units, stock appreciation rights, and other stock-based awards. The Company’s employees, officers, directors, consultants and advisors are eligible to receive awards under the 2018 Plan. The number of shares of common stock that were reserved for issuance under the 2018 Plan were 2,200,260 shares. The 2018 Plan provides that the number of shares reserved and available for issuance under the plan will automatically increase each January 1, beginning on January 1, 2019, by 4% of the outstanding number of shares of the Company’s common stock on the immediately preceding December 31 or such lesser number of shares as determined by the Board. On January 1, 2019, as a result of the foregoing evergreen provision, the number of shares of common stock available for issuance under the 2018 Plan automatically increased from 2,200,260 to 3,322,473 shares. Since the date of effectiveness of the 2018 Plan, the Company has not and will not grant any further awards under the 2017 Plan. However, any shares of common stock subject to awards under the 2017 Plan that expire, terminate, or otherwise are surrendered, canceled, forfeited or repurchased without having been fully exercised or resulting in any common stock being issued will become available for issuance under the 2018 Plan. Stock-based Compensation Expense Total stock-based compensation expense is recognized for stock options granted to employees and non-employees and has been reported in the Company’s condensed consolidated condensed statements of operations as follows:
|  | Three Months Ended March 31, |
|  | 2019 |  |  | 2018 |
Research and development |  | $ | 277 |  |  | $ | 625 |
General and administrative |  |  | 386 |  |  |  | 556 |
Total stock-based compensation expense |  | $ | 663 |  |  | $ | 1,181 |
Stock Options The following table summarizes stock option activity under the Plans:
|  | Shares Available for Grant |  |  | Number of Options Outstanding |  |  | Weighted- Average Exercise Price per Option |  |  | Weighted- Average Remaining Contract Term |  |  | Aggregate Intrinsic Value |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (In thousands) |
Outstanding, December 31, 2018 |  |  | 1,350,582 |  |  |  | 1,122,677 |  |  | $ | 11.63 |  |  |  | 9.22 |  |  |  |  |
Shares reserved for issuance |  |  | 1,122,213 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Options granted(1) |  |  | (604,440 | ) |  |  | 604,440 |  |  |  | 8.58 |  |  |  |  |  |  |  |  |
Options cancelled |  |  | 20,800 |  |  |  | (20,800 | ) |  |  | 9.91 |  |  |  |  |  |  |  |  |
Outstanding, March 31, 2019 |  |  | 1,889,155 |  |  |  | 1,706,317 |  |  |  | 10.57 |  |  |  | 9.30 |  |  | $ | 627 |
Exercisable, March 31, 2019 |  |  |  |  |  |  | 194,221 |  |  |  | 11.62 |  |  |  | 8.70 |  |  |  | 202 |
Vested and expected to vest, March 31, 2019 |  |  |  |  |  |  | 1,706,317 |  |  |  | 10.57 |  |  |  | 9.30 |  |  |  | 627 |
(1) | The Company granted 9,840 stock options to non-employees during the three months ended March 31, 2019.
The aggregate intrinsic values of options outstanding, exercisable, vested and expected to vest were calculated as the difference between the exercise price of the options and the fair value of the Company’s common stock as of March 31, 2019. No options were exercised during the three months ended March 31, 2019. During the three months ended March 31, 2019, the Company granted options to employees and directors to purchase an aggregate of 594,600 common shares with a weighted-average grant date fair value of $6.65 per share. During the three months ended March 31, 2019, the Company granted options to non-employees to purchase an aggregate of 9,840 common shares with a weighted-average grant date fair value of $5.79 per share. The expense related to options granted to employees and directors for the three months ended March 31, 2019 was $0.6 million. The expense related to options granted to non-employees for the three months ended March 31, 2019 was $7,000. The expense related to options granted to employees, directors and non-employees was $0.3 million and $3,000, respectively, for the three months ended March 31, 2018. As of March 31, 2019, the total unrecognized compensation expense related to unvested options granted to employees and directors was $10.7 million, which the Company expects to recognize over an estimated weighted-average period of 3.30 years. As of March 31, 2019, the total unrecognized compensation expense related to unvested non-employee options was $0.2 million, which the Company expects to recognize over an estimated weighted-average period of 2.99 years. The fair value of stock options for employees and non-employees was estimated using a Black-Scholes option pricing model with the following assumptions:
|  | Three Months Ended March 31,
|  | 2019 |  |  | 2018
Employees: |  |  |  |  |  |
Fair value of common stock |  | $8.53 - $8.90 |  |  | $13.17 - $15.45
Expected term (in years) |  |  | 6.1 |  |  | 5.8 - 6.6
Expected volatility |  | 93.7% - 94.8% |  |  | 76.1% - 77.7%
Risk-free interest rate |  | 2.5% - 2.6% |  |  | 2.4% - 2.7%
Expected dividend yield |  | 0.0% |  |  | 0.0%
Non-employees: |  |  |  |  |  |
Fair value of common stock |  | $6.82 - $8.61 |  |  | $9.58 - $15.45
Expected term (in years) |  | 8.2 - 10.0 |  |  | 9.2 - 10.0
Expected volatility |  | 91.3% - 94.9% |  |  | 77.9% - 78.1%
Risk-free interest rate |  | 2.4% - 2.6% |  |  | 2.7% - 2.8%
Expected dividend yield |  | 0.0% |  |  | 0.0%
Restricted Stock On April 17, 2018, the Company granted 2,000 shares of restricted stock to a consultant. The restrictions will lapse in four equal quarterly installments and will be fully vested on the first anniversary of such grant. Compensation expenses of such unvested shares will be remeasured at fair value until vested at each reporting date. The summary of restricted stock activity and related information follows:
|  | Number of Restricted Shares Outstanding |
Unvested shares — December 31, 2018 |  |  | 1,000 |
Vested |  |  | (500 | )
Unvested shares — March 31, 2019 |  |  | 500 |
The Company recognized $1,000 and $0.9 million of stock-based compensation expense related to restricted shares during the three months ended March 31, 2019 and 2018, respectively. As of March 31, 2019, there was $159 of unrecognized stock-based compensation expense related to unvested restricted stock. This amount is expected to be recognized over a remaining weighted-average period of 0.05 years. There were no restricted stock awards during the three months ended March 31, 2019 and 2018. Restricted Stock Units In May 2018, the Company granted 24,960 restricted stock units to an employee with a grant date fair value of $9.03 per share. The summary of restricted stock unit activity and related information follows:
|  | Number of Restricted Stock Units Outstanding |
Unvested shares — December 31, 2018 |  |  | 24,960 |
Granted |  |  | — |
Vested |  |  | — |
Unvested shares — March 31, 2019 |  |  | 24,960 |
The Company recognized $14,000 of stock-based compensation expense related to restricted stock units during the three months ended March 31, 2019. As of March 31, 2019, there was $0.2 million of unrecognized stock-based compensation expense related to unvested restricted stock units. This amount is expected to be recognized over a remaining weighted-average period of 3.14 years. There were no restricted stock units granted to employees or non-employees during the three months ended March 31, 2019 and 2018. 2018 Employee Stock Purchase Plan The Board adopted and the Company’s stockholders approved the 2018 Employee Stock Purchase Plan (“2018 ESPP”), which became effective on the date immediately preceding the date on which the Company’s registration statement became effective. The 2018 ESPP enables eligible employees to purchase shares of the Company’s Common Stock at a discount. The number of shares of common stock that are reserved for issuance under the 2018 ESPP are 275,030 shares. The 2018 ESPP provides that the number of shares reserved and available for issuance will automatically increase each January 1, beginning on January 1, 2019 and increasing each January 1 thereafter through January 1, 2028, by the least of (i) 1% of the outstanding number of shares of the Company’s common stock on the immediately preceding December 31; (ii) 543,926 shares or (iii) such number of shares as determined by the ESPP administrator. On January 1, 2019, as a result of the foregoing evergreen provision, the number of shares of common stock available for issuance under the 2018 ESPP automatically increased from 275,030 to 555,583 shares.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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