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Stock-Based Compensation | 6 Months Ended
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Jun. 30, 2024
Stock-Based Compensation [Abstract] |
Stock-Based Compensation | Note 7 – Stock-Based Compensation In 2014, the Company’s stockholders approved the 2014 Equity Incentive Plan (the “Original Plan”) pursuant to which the Company may grant up to 91,367 shares as ISOs, NQs and restricted stock units (“RSUs”), subject to increases as hereafter described (the “Plan Limit”). In addition, on January 1, 2015, and each January 1 thereafter and prior to the termination of the 2014 Equity Incentive Plan, pursuant to the terms of the Original Plan, the Plan Limit was and shall be increased by the lesser of (x) 4% of the number of shares of Common Stock outstanding as of the immediately preceding December 31 and (y) such lesser number as the Board of Directors (“Board”) may determine in its discretion. In March 2019, the Board adopted and the Company’s stockholders approved the Amended and Restated PDS Biotechnology Corporation 2014 Equity Incentive Plan (the “Prior Plan”) which amended and restated the Original Plan in order to remove the annual increase component and was limited to 826,292 shares. On December 8, 2020, the Board adopted and on June 17, 2021, the stockholders approved, the Second Amended and Restated PDS Biotechnology Corporation 2014 Equity Incentive Plan (the “Restated Plan”), which amended and restated the Prior Plan. The Restated Plan is identical to the Prior Plan in all material respects, except (a) the number of shares of Common Stock authorized for issuance under the Restated Plan was increased from 826,292 shares to 4,165,535 shares, plus the total number of shares that remained available for issuance, that were not covered by outstanding awards issued under the Prior Plan, immediately prior to December 8, 2020; and (b) the Prior Plan was amended to terminate on December 7, 2030, unless earlier terminated. On May 19, 2023, the Board adopted, subject to stockholder approval, the Third Amended and Restated PDS Biotechnology Corporation 2014 Equity Incentive Plan (the “Third Restated Plan”). At the 2023 annual meeting of stockholders held on July 14, 2023, the stockholders approved the Third Restated Plan, which amended and restated the Restated Plan to increase the total amount of shares authorized for issuance thereunder. The Third Restated Plan is identical to the Restated Plan in all material respects, except, the number of shares of Common Stock authorized for issuance under the Third Restated Plan increased from 4,165,535 to 6,565,535. As of June 30, 2024, there were 2,301,167 shares available for grant under the Third Restated Plan. Pursuant to the terms of the Third Restated Plan, stock options have a term of ten years from the date of grant or such shorter term as may be provided in the option agreement. Unless specified otherwise in an individual option agreement, ISOs generally vest over a four-year period. On June 17, 2019, the Board adopted the 2019 Inducement Plan (the “Inducement Plan”). On December 8, 2020, the Company amended the Inducement Plan solely to increase the total number of shares of common stock reserved for issuance under the Inducement Plan from 200,000 shares to 500,000 shares. On May 17, 2022, the Company further amended the Inducement Plan solely to increase the total number of shares of Common Stock reserved for issuance under the Inducement Plan from 500,000 shares to 1,100,000 shares. On January 22, 2024, the Company further amended the Inducement Plan solely to increase the total number of shares of Common Stock reserved for issuance under the Inducement Plan from 1,100,000 shares to 2,100,000 shares. The Inducement Plan provides for the grant of non-qualified stock options. The Inducement Plan, and each amendment thereto, was recommended for approval by the Compensation Committee of the Board and subsequently approved and adopted by the Board without stockholder approval pursuant to Rule 5635(c)(4) of the Nasdaq Listing Rules. The Inducement Plan is administered by the Compensation Committee of the Board. In accordance with Rule 5635(c)(4) of the Nasdaq Listing Rules, non-qualified stock options under the Inducement Plan may only be made to an employee who has not previously been an employee of the Company or member of the Board of Directors of the Company (or any parent or subsidiary of the Company), if he or she is granted such non-qualified stock options in connection with his or her commencement of employment with the Company or a subsidiary and such grant is an inducement material to his or her entering into employment with the Company or such subsidiary. As of June 30, 2024, there were 969,407 shares available for grant under the Inducement Plan. The following table summarizes the components of stock-based compensation expense in the condensed consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2024 and 2023:
|  | Three Months Ended June 30, |  |  | Six months ended June 30, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
|  | (unaudited) |  |  | (unaudited) |
Stock-Based Compensation |  |  |  |  |  |  |  |  |  |  |  |
Research and development |  | $ | 609,828 |  |  | $ | 806,548 |  |  | $ | 1,161,746 |  |  | $ | 1,607,312 |
General and administrative |  |  | 1,185,894 |  |  |  | 1,298,990 |  |  |  | 2,263,987 |  |  |  | 2,578,545 |
Total |  | $ | 1,795,722 |  |  | $ | 2,105,538 |  |  | $ | 3,425,733 |  |  | $ | 4,185,857 |
The Company granted options to purchase 254,000 and 1,192,648 shares during the three and six month periods ended June 30, 2024, respectively, and granted options to purchase 29,900 and 1,154,500 shares during the three and six month period ended June 30, 2023, respectively. The fair value of options granted during the three and six months ended June 30, 2024 and 2023 was estimated using the Black-Scholes option valuation model utilizing the following assumptions:
|  | Three Months Ended June 30 |  |  | Six Months Ended June 30, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
|  | Weighted Average |  |  | Weighted Average |  |  | Weighted Average |  |  | Weighted Average |
|  | (unaudited) |  |  | (unaudited) |
Volatility |  |  | 106.26 | % |  |  | 143.87 | % |  |  | 137.07 | % |  |  | 142.07 | %
Risk-Free Interest Rate |  |  | 4.26 | % |  |  | 3.59 | % |  |  | 4.04 | % |  |  | 4.05 | %
Expected Term in Years |  |  | 5.96 |  |  |  | 6.08 |  |  |  | 6.06 |  |  |  | 6.08 |
Dividend Rate |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Fair Value of Option on Grant Date |  | $ | 2.86 |  |  | $ | 5.09 |  |  | $ | 4.71 |  |  | $ | 10.64 |
The following table summarizes the number of options outstanding and the weighted average exercise price:
|  | Number of Shares |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Life in Years |  |  | Aggregate Intrinsic Value |
Options outstanding at December 31, 2023 |  |  | 5,029,345 |  |  | $ | 6.43 |  |  |  | 7.42 |  |  | $ | 4,395,227 |
Granted |  |  | 1,192,648 |  |  |  | 5.12 |  |  |  | 9.70 |  |  |  | – |
Exercised |  |  | (156,073 | ) |  |  | 3.40 |  |  |  |  |  |  |  |  |
Forfeited and expired |  |  | (502,709 | ) |  |  | 8.68 |  |  |  |  |  |  |  |  |
Options outstanding at June 30, 2024 |  |  | 5,563,211 |  |  | $ | 6.03 |  |  |  | 7.46 |  |  | $ | 899,228 |
Vested and expected to vest at June 30, 2024 |  |  | 5,563,211 |  |  | $ | 6.03 |  |  |  | 7.46 |  |  | $ | 899,228 |
Exercisable at June 30, 2024 |  |  | 3,043,575 |  |  | $ | 5.79 |  |  |  | 6.25 |  |  | $ | 837,670 |
As of June 30, 2024 there was approximately $14,042,395 of unamortized stock option compensation expense, which is expected to be recognized over a remaining average vesting period of 2.84 years.

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