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Equity Incentive Plan | 9 Months Ended
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Sep. 30, 2024
Share-Based Payment Arrangement [Abstract] |
Equity Incentive Plan | Equity Incentive Plan Stock Options The fair value of option awards are estimated on the date of grant using the Black-Scholes option pricing model. Expected volatility was based on historical volatility of the Company’s common shares. The expected term of options granted was based on the simplified formula. The risk-free interest rate was based on the U.S. Treasury yield for a period consistent with the expected term of the option in effect at the time of the grant. The dividend yield assumption was based on the expectation of no future dividend payments. Option awards can be granted for a maximum term of up to 10 years. The assumptions used in the Black-Scholes model were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Expected volatility | — |  | 81.8% |  | 124.3-126.1% |  | 81.8-84.0%
Expected term (in years) | — |  | 0.5 |  | 3.5 |  | 0.5
Risk-free interest rate | — |  | 5.52% |  | 4.09-4.61% |  | 5.27-5.52%
Dividend yield | — |  | — |  | — |  | —
The following table summarizes option activity:
| Shares Subject to Options |  | Weighted- Average Exercise Price |  | Weighted- Average Remaining Contractual Term (years) |  | Aggregate Intrinsic Value (in thousands)
Options outstanding — January 1, 2024 | 395,241 |  |  | $ | 6.34 |  |  |  |  |
Granted | 371,465 |  |  | $ | 2.16 |  |  |  |  |
Exercised | — |  |  | $ | — |  |  |  |  |
Forfeited | (323,536) |  |  | $ | 3.21 |  |  |  |  |
Options outstanding — September 30, 2024 | 443,170 |  |  | $ | 5.11 |  |  | 4.5 |  | $ | — |
Vested and expected to vest — September 30, 2024 | 443,170 |  |  | $ | 5.11 |  |  | 4.5 |  | $ | — |
Exercisable — September 30, 2024 | 200,985 |  |  | $ | 7.59 |  |  | 3.8 |  | $ | — |
The weighted average grant date fair values of options granted for the nine months ended September 30, 2024 and 2023 was $1.67 and $0.58 per share, respectively. Restricted Stock Units The following table summarizes RSU activity:
| Number of Shares |  | Weighted Average Grant Date Fair Value
Outstanding — January 1, 2024 | 58,929 |  |  | $ | 9.51 |
Granted | 1,757,250 |  |  | $ | 1.72 |
Vested and released | (741,184) |  |  | $ | 1.88 |
Forfeited | — |  |  | $ | — |
Outstanding — September 30, 2024 | 1,074,995 |  |  | $ | 2.04 |
Vested and unreleased — September 30, 2024 | 199,219 |  |  | $ | 1.90 |
The estimated fair value of RSUs was based on the market value of the Company’s common shares on the date of grant. RSUs typically vest over a period of 12 months to three years from the original date of grant. The total grant date fair value of RSUs vested for the nine months ended September 30, 2024 and 2023 was approximately $1.8 million and $0.6 million, respectively. The fair value of RSUs vested for the nine months ended September 30, 2024 and 2023 was approximately $1.3 million and $0.2 million, respectively. Restricted Stock Awards The Company grants RSAs to employees and consultants in lieu of cash payment for services performed. The estimated fair value of the RSA is based on the market value of the Company’s common shares on the date of grant. For the nine months ended September 30, 2024, the Company granted 199,597 fully vested RSAs with a weighted average per share price of $1.28 and a fair value of $0.3 million. For the nine months ended September 30, 2023, the Company granted 44,450 fully vested RSAs with a weighted average per share price of $1.44 and a fair value of $0.1 million. Share-Based Compensation Expense The Company recorded the following compensation expense related to its share-based compensation awards (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Sales and marketing | $ | — |  |  | $ | 35 |  |  | $ | — |  |  | $ | 86 |
General and administrative | 511 |  |  | 721 |  |  | 2,369 |  |  | 1,874 |
Total share-based compensation expense | $ | 511 |  |  | $ | 756 |  |  | $ | 2,369 |  |  | $ | 1,960 |
Total unrecognized estimated compensation cost by type of award and the weighted-average remaining requisite service period over which such expense is expected to be recognized (in thousands, unless otherwise noted):
| September 30, 2024
| Unrecognized Expense |  | Remaining Weighted-Average Recognition Period (years)
RSUs | $ | 1,368 |  |  | 1.1
Stock options | $ | 160 |  |  | 0.5

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