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Stock-Based Compensation

12 Months Ended

Dec. 31, 2024

Stock-Based Compensation

Stock-Based Compensation

(8) Stock-Based Compensation

Effective upon the closing of the Company’s IPO on January 31, 2020, the Company’s 2019 Equity Incentive Plan (the “2019 Plan”) became effective, succeeding the Company’s previous equity incentive plan. No new options may be issued under the previous plan, although shares subject to grants which are cancelled or forfeited will again be available under the 2019 Plan. Effective June 12, 2024, the 2019 Plan was amended to increase the number of shares authorized from 2,000,000 to 3,000,000. As of December 31, 2024, the 2019 Plan contained 354,299 shares available for future grants.

The 2019 Plan provides for grants to employees, members of the Board, consultants and advisors to the Company, in the form of stock options, stock awards and other equity-based awards. The amount and terms of grants are determined by the Board, except when they are below previously approved thresholds allowing the Company’s CEO to grant awards on a discretionary basis. The Company’s stock options generally carry a maximum term of 10 years after date of grant and are exercisable in cash, or as otherwise determined by the Board.

Stock-based compensation expense in the statements of operations, including the fair value of stock awards to consultants and advisors for services rendered, for the years ended December 31, 2024 and 2023 was as follows:


		Year Ended
		December 31,
		2024			2023
General and administrative		$	2,510,444		$	2,414,867
Research and development			1,326,326			2,213,539
		$	3,836,770		$	4,628,406

The following table summarizes the Company’s stock option activity:


							Weighted
							Average
							Remaining		Aggregate
				Weighted			Contractual		Intrinsic
		Number of		Average			Term		Value
		Shares		Exercise Price			(Years)		(In Thousands)
Outstanding at December 31, 2023		1,954,774		$	13.41		6.1		$	17,863
Granted		870,494			6.01					—
Exercised		(300,000)			3.13					570
Forfeited		(189,248)			20.61					—
Outstanding at December 31, 2024		2,336,020		$	11.39		7.3		$	1,298
Exercisable at December 31, 2024		1,824,122		$	12.80		6.8		$	1,298

The weighted average grant date fair value of stock options granted during the years ended December 31, 2024 and 2023 was $5.16 and $7.39, respectively. During the year ended December 31, 2024 the Company received no cash proceeds from the exercises of stock options. For the year ended December 31, 2023, the Company received $8,385 cash proceeds from the exercises of stock options. As of December 31, 2024, there was unrecognized stock-based compensation expense related to unvested stock option awards, related to service-based options of $2.4 million, which will be recognized over a remaining weighted-average period of 1.0 years.

During the years ended December 31, 2024 and 2023, the Company issued 870,494 and 367,329 options, respectively. Under the grant agreements for the 2024 stock option grants, 382,282 of the options vested immediately and 468,212 of the options vest in substantially equal quarterly installments over two years from the date of grant. There are also 20,000 stock option grants that vest as consulting services are performed and awards are earned. Under the grant agreements for the 2023 stock option grants, 94,624 of the options vested immediately, and 272,705 of the options vest in substantially equal quarterly installments over two years from the date of grant. All of the options have a 10-year term prior to expiration.

The assumptions utilized in the fair value calculations for stock options granted during the years ended December 31, 2024 and 2023, respectively, were as follows:


		Year Ended		Year Ended
		December 31, 2024		December 31, 2023
Weighted average risk-free interest rate		4.18	%	4.17	%
Weighted average expected option term (years)		5.3		5.5
Weighted average expected volatility		123	%	120	%
Expected dividend yield		—		—

Related Party Transaction

During the year ended December 31, 2024, the Company issued 20,000 non-qualified stock options to a member of its Board of Directors in consideration for the member’s agreement to serve as a consultant to the Company. The options were issued in one tranche, at a grant price of $5.27 per share. 8,069 of the awards became vested during the year ended December 31, 2024.