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Equity Incentive Plan - Stock-Based Compensation Expense and Common Stock Warrants | 3 Months Ended
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Mar. 31, 2023
Share-Based Payment Arrangement [Abstract] |
Equity Incentive Plan - Stock-Based Compensation Expense and Common Stock Warrants | 7. Equity Incentive Plan - Stock-Based Compensation Expense and Common Stock Warrants 2021 Omnibus Equity Incentive Plan On July 19, 2021, the Company’s Board of Directors adopted the RenovoRx, Inc. 2021 Omnibus Equity Incentive Plan (the “2021 Plan”). The 2021 Plan, which became effective immediately prior to the closing of the IPO, initially reserved 2,185,832 shares of common stock, which included 10,832 shares of common shares reserved but unissued under the Amended and Restated 2013 Equity Incentive Plan (the “2013 Plan”). The Company’s 2013 Plan was terminated immediately prior to the closing of the IPO; however, shares subject to awards granted under the 2013 Plan will continue to be governed by the 2013 Plan. In accordance with the terms of the 2021 Plan, on January 1, 2023, the number of shares reserved and available for issuance increased by 272,931 shares. A summary of the stock option activity for the three months ended March 31, 2023 is as follows: Summary of Stock Option Award Activity
|  | Number of Stock Options |  |  | Weighted- Average Exercise Price |  |  | Weighted- Average Remaining Contractual Life |  |  | Aggregate Intrinsic Value |
Outstanding as of December 31, 2022 |  |  | 1,399,252 |  |  | $ | 2.40 |  |  |  | 7.79 |  |  | $ | 928 |
Granted |  |  | 304,325 |  |  | $ | 3.40 |  |  |  | - |  |  | $ | - |
Exercised |  |  | (3,547 | ) |  | $ | 1.52 |  |  |  | - |  |  | $ | - |
Forfeited |  |  | (25,000 | ) |  | $ | 1.82 |  |  |  | - |  |  | $ | - |
Expired |  |  | - |  |  | $ | - |  |  |  | - |  |  | $ | - |
Outstanding as of March 31, 2023 |  |  | 1,675,030 |  |  | $ | 2.59 |  |  |  | 7.95 |  |  | $ | 2,131 |
Exercisable as of March 31, 2023 |  |  | 743,247 |  |  | $ | 1.92 |  |  |  | 6.04 |  |  | $ | 1,478 |
Vested and expected to vest as of March 31, 2023 |  |  | 1,675,030 |  |  | $ | 2.59 |  |  |  | 7.95 |  |  | $ | 2,131 |
As of March 31, 2023, there was $0.7 million of unrecognized stock-based compensation expense related to options granted but not yet amortized, which will be recognized over a weighted-average period of approximately 3.25 years. For the three months ended March 31, 2023, and 2022, the Company utilized the Black-Scholes option-pricing model for estimating the fair value of the stock option granted. The Company estimated the fair value of each option grant on the grant date using the Black-Scholes option pricing model with the following weighted-average assumptions: Schedule of Estimate Fair Value of Stock Options
|  | Three Months Ended March 31, |
|  | 2023 |  |  | 2022 |
Expected Volatility |  |  | 99.49% – 103.76 | % |  |  | 41.66% – 42.13 | %
Expected term (years) |  |  | 6.02 – 10.0 |  |  |  | 6.44 |
Risk-free interest rate |  |  | 3.51% – 4.28 | % |  |  | 0.62% – 1.00 | %
Dividend rate |  |  | – | % |  |  | – | %
During the three months ended March 31, 2023, and 2022, the Company recognized $244,000 and $168,000, respectively, in stock-based compensation expense from stock option grants. The compensation expense is allocated on a departmental basis, based on the classification of the option holder. No income tax benefits have been recognized in the condensed statements of operations and comprehensive loss for stock-based compensation arrangements. The following table summarizes the components of stock-based compensation expense recognized in the Company’s Condensed Statements of Operations and Comprehensive Loss during the three months ended March 31, 2023, and 2022 (in thousands): Schedule of Stock Based Compensation Expense
|  | 2023 |  |  | 2022 |
|  | Three Months Ended |
|  | March 31, |
|  | 2023 |  |  | 2022 |
Research and development |  | $ | 42 |  |  | $ | 45 |
General and administrative |  |  | 202 |  |  |  | 123 |
Total stock-based compensation expense |  | $ | 244 |  |  | $ | 168 |
Restricted Stock During the three months ended March 31, 2023, the Board approved the issuance of 30,000 shares of restricted stock to an entity as consideration for a commercial contract, vested immediately, in a private placement. The shares were issued outside the 2021 Plan and the Company recognized $117,000 of stock-based compensation expense for the restricted stock. Common Stock Warrants In August 2021, in connection with the IPO, the Company issued warrants to purchase 3,035,195 shares of the Company’s common stock. Warrants to purchase 198,875 shares of the Company’s common stock expire on August 25, 2026 and warrants to purchase 2,588,120 shares of the Company’s common stock expire on August 31, 2026. The following is a summary of the common stock warrant activity during the three months ended March 31, 2023. Schedule of Warrant Activity
|  | Shares Issuable Upon Exercise of Outstanding Warrants |  |  | Weighted- Average Exercise Price |  |  | Weighted- Average Remaining Contractual Life |  |  | Aggregate Intrinsic Value (In thousands) |
Outstanding as of December 31, 2022 |  |  | 2,786,995 |  |  | $ | 10.80 |  |  |  | 3.67 |  |  | $ | 30,100 |
Issued |  |  | - |  |  | $ | - |  |  |  | - |  |  | $ | - |
Exercised |  |  | - |  |  | $ | - |  |  |  | - |  |  | $ | - |
Expired |  |  | - |  |  | $ | - |  |  |  | - |  |  | $ | - |
Outstanding as of March 31, 2023 |  |  | 2,786,995 |  |  | $ | 10.80 |  |  |  | 3.42 |  |  | $ | 30,100 |

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