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Stock-Based Compensation | 9 Months Ended
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Jun. 30, 2024
Stock-Based Compensation [Abstract] |
Stock-Based Compensation | NOTE 8 – Stock-Based Compensation During the three and nine months ended June 30, 2024 and 2023, stock-based compensation expense related to stock-based awards was included in selling, general and administrative and research and development costs as follows in the accompanying condensed statements of operations.
|  | Three Months Ended |  |  | Nine Months Ended |
|  | June 30, |  |  | June 30, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Selling, general and administrative |  | $ | 270,552 |  |  | $ | 237,007 |  |  | $ | 794,266 |  |  | $ | 691,939 |
Research and development |  |  | 68,057 |  |  |  | 59,395 |  |  |  | 209,839 |  |  |  | 142,272 |
Total stock-based compensation expense |  | $ | 338,609 |  |  | $ | 296,402 |  |  | $ | 1,004,105 |  |  | $ | 834,211 |
Inducement Plan In addition to the Company’s 2017 Equity Incentive Plan (the “2017 Plan”), the Company adopted the NeuroOne Medical Technologies Corporation 2021 Inducement Plan (the “Inducement Plan”) on October 4, 2021, pursuant to which the Company reserved 420,350 shares of its common stock to be used exclusively for grants of awards to individuals who were not previously employees or directors of the Company, as an inducement material to the individual’s entry into employment with the Company within the meaning of Rule 5635(c)(4) of the Nasdaq Listing Rules. The Inducement Plan was approved by the Company’s Board of Directors without stockholder approval in accordance with such rule. On November 9, 2023, the Company’s Board of Directors adopted the First Amendment to the Company’s Inducement Plan, increasing the aggregate number of shares of common stock that may be issued pursuant to equity incentive awards under the Inducement Plan by 150,000 shares for a total of 570,350 shares of common stock that may be issued. Evergreen provision Under the 2017 Plan, the shares reserved automatically increase on January 1st of each year, for a period of not more than ten years from the date the 2017 Plan is approved by the stockholders of the Company, commencing on January 1, 2019 and ending on (and including) January 1, 2027, to an amount equal to 13% of the fully-diluted shares outstanding as of December 31st of the preceding calendar year. Notwithstanding the foregoing, the Company’s Board of Directors may act prior to January 1st of a given year to provide that there will be no January 1st increase in the share reserve for such year or that the increase in the share reserve for such year will be a lesser number of shares of common stock than would otherwise occur pursuant to the preceding sentence. “Fully Diluted Shares” as of a date means an amount equal to the number of shares of common stock (i) outstanding and (ii) issuable upon exercise, conversion or settlement of outstanding awards under the 2017 Plan and any other outstanding options, warrants or other securities of the Company that are (directly or indirectly) convertible or exchangeable into or exercisable for shares of common stock, in each case as of the close of business of the Company on December 31 of the preceding calendar year. Effective January 1, 2024, 1,051,556 shares were added to the 2017 Plan as a result of the evergreen provision. Stock Options During the three months ended June 30, 2024 and 2023, under the 2017 Plan, the Company granted zero and 339,000 stock options, respectively, to its officers, employees and consultants. During the nine months ended June 30, 2024 and 2023, the Company granted 1,225,669 and 469,512, respectively, to its board of directors, officers, employees and consultants. Vesting generally occurs over an immediate to 48 month period based on a time of service condition. The grant date fair value of the grants issued during the three months ended June 30, 2023 was $0.92 per share. The grant date fair value of the grants issued during the nine months ended June 30, 2024 and 2023 was $1.08 and $0.88 per share, respectively. The total expense for the three months ended June 30, 2024 and 2023 related to stock options was $202,338 and $158,528, respectively. The total expense for the nine months ended June 30, 2024 and 2023 related to stock options was $603,957 and $482,276, respectively. The total number of stock options outstanding as of June 30, 2024 and September 30, 2023 was 2,814,096 and 1,708,427, respectively. The weighted-average assumptions used in the Black-Scholes option-pricing model are as follows for the stock options granted during the three and nine months ended June 30, 2024 and 2023:
|  | Three Months Ended |  |  | Nine Months Ended |
|  | June 30, |  |  | June 30, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Expected stock price volatility |  |  | — | % |  |  | 58.1 | % |  |  | 111.9 | % |  |  | 57.4 | %
Expected life of options (years) |  |  | — |  |  |  | 6.1 |  |  |  | 6.1 |  |  |  | 5.8 |
Expected dividend yield |  |  | — | % |  |  | 0 | % |  |  | 0 | % |  |  | 0 | %
Risk free interest rate |  |  | — | % |  |  | 3.6 | % |  |  | 4.6 | % |  |  | 3.7 | %
During the three months ended June 30, 2024 and 2023, 127,583 and 69,947 stock options vested, respectively, and 65,000 and 521 stock options were forfeited during these periods, respectively. During the nine months ended June 30, 2024 and 2023, 232,494 and 282,172 stock options vested, respectively, and 120,000 and 521 stock options were forfeited during these periods, respectively. During the three and nine months ended June 30, 2024 and 2023, no options were exercised. Restricted Stock Units During the three and nine months ended June 30, 2024, the Company granted an aggregate of zero and 1,006,725 restricted stock units (“RSUs”) to its officers, employees and consultants under the 2017 Plan, respectively. The weighted average grant date fair value of the RSUs granted during the nine months ended June 30, 2024 was $1.03 per unit. The RSUs granted vest over a four-year period in equal annual installments on the anniversary date of the grant, subject to the recipient’s continued service on such dates. During the three and nine months ended June 30, 2023, the Company granted an aggregate of 249,000 and 310,728 RSUs to its board of directors, officers, employees and consultants under the 2017 Plan, respectively. The weighted average grant date fair value of the RSUs granted during the three and nine months ended June 30, 2023 was $1.59 and $1.60 per unit, respectively. The RSUs vest over a one to three year period with some of the RSUs vesting ratably on a monthly basis and others vesting at 50 percent on the first anniversary of the grant date with the remaining RSUs vesting in equal quarterly installments on the last day of each quarter over 24 months, subject to the recipient’s continued service on such dates. During the three months ended June 30, 2024 and 2023, 162,309 and 52,299 RSUs vested, respectively, and no RSUs were forfeited during these periods. During the nine months ended June 30, 2024 and 2023, 232,523 and 294,109 RSUs vested, respectively, and no RSUs were forfeited during these periods. The total expense for the three months ended June 30, 2024 and 2023 related to these RSUs was $136,271 and $137,874, respectively. The total expense for the nine months ended June 30, 2024 and 2023 related to these RSUs was $400,148 and $351,935, respectively. General As of June 30, 2024, 289,215 shares were available in the aggregate for future issuance under the 2017 Plan and Inducement Plan. No shares were available for future issuance under the 2016 Equity Incentive Plan. Unrecognized stock-based compensation was $2,713,998 as of June 30, 2024. The unrecognized share-based expense is expected to be recognized over a weighted average period of 2.5 years.

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