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Stock Option Plans | 3 Months Ended
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Mar. 31, 2026
Share-Based Payment Arrangement [Abstract] |
Stock Option Plans | ## (9) Stock Option Plans On August 5, 2014, the Company approved a stock option grant plan (the “2014 Equity Incentive Plan”) for employees, directors, and non-employee consultants, which provides for the issuance of options to purchase common stock. As of March 31, 2026, there were 728,650 shares of common stock reserved for issuance under the 2014 Equity Incentive Plan, with 534,290 shares of common stock available for grant and 194,360 shares of common stock underlying outstanding grants. The Company adopted the 2021 Omnibus Equity Incentive Plan (as amended, the “2021 Equity Incentive Plan”, and collectively with the 2014 Equity Incentive Plan, the “Equity Compensation Plans”), which reserved 1,100,000 shares of common stock for issuance. At the beginning of each calendar year, the shares reserved for future issuance shall increase by two percent (2%) of the total number of shares of common stock issued and outstanding on a fully-diluted basis as of the end of the Company’s immediately preceding fiscal year (or such lesser number of shares, including no shares, determined by the Board in its sole discretion); provided, however, that the aggregate number of additional shares available for issuance pursuant to this paragraph (b) shall not exceed a total of 500,000 shares (the “Annual Increase”). In June 2024, the Company held the 2024 Annual Meeting of Stockholders (the “2024 Annual Meeting”). At the 2024 Annual Meeting, the stockholders of the Company approved an amendment to the 2021 Equity Incentive Plan which, among other things, increased the number of shares of common stock available for grant under the 2021 Equity Incentive Plan by 3,900,000 and increased the Annual Increase from 2% to 5% (the “2021 Plan Amendment”). At the 2025 Special Meeting, the stockholders of the Company approved an amendment to the 2021 Equity Incentive Plan which, among other things, increased the number of shares of common stock available for grant under the 2021 Equity Incentive Plan by 24,180,000 and increased the maximum number of additional shares available pursuant to the Annual Increase from 10,000,000 shares to 73,750,000 shares. As of March 31, 2026, there were 47,624,055 shares of common stock reserved for issuance under the 2021 Equity Incentive Plan, with 8,848,019 shares of common stock available for grant and 38,776,036 shares of common stock underlying outstanding grants. The Company offers an Employee Stock Purchase Plan (“ESPP”) that allows eligible employees to purchase shares of common stock at a discount of up to 15% from the lower of the fair market value at the beginning or end of the offering period. Under ASC 718, the ESPP is classified as compensatory, and stock-based compensation expense is recognized for the fair value of the discount and any embedded option features. No shares were issued under the ESPP during either the three months ended March 31, 2026 and 2025, and no stock-based compensation expense was recognized. As of March 31, 2026, 100,000 shares remained available for future issuance. The expected term of the stock options was estimated using the “simplified” method, as defined by the SEC’s Staff Accounting Bulletin No. 107, Share-Based Payment. The volatility assumption was determined by examining the historical volatilities for industry peer companies, as the Company does not have sufficient trading history for its common stock. The risk-free interest rate assumption is based on the U.S. Treasury instruments whose term was consistent with the expected term of the options. The dividend assumption is based on the Company’s history and expectation of dividend payouts. The Company has never paid dividends on its common stock and does not anticipate paying dividends on its common stock in the foreseeable future. Therefore, the Company has assumed no dividend yield for purposes of estimating the fair value of the options. Stock Options Stock option activity for employees and non-employees under the Equity Compensation Plans for the three months ended March 31, 2026, was as follows:
|  | Options |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Life (periods) |  |  | Aggregate Intrinsic Value |
Outstanding options, December 31, 2025 |  |  | 20,887,772 |  |  | $ | 2.93 |  |  |  | 9.48 |  |  | $ | 26,069,500 |
Granted |  |  | 18,643,100 |  |  | $ | 4.43 |  |  |  |  |  |  |
Forfeited |  |  | (522,997 | ) |  | $ | 3.52 |  |  |  |  |  |  |
Exercised |  |  | (39,083 | ) |  | $ | 2.89 |  |  |  |  |  |  |
Expired |  |  | (8,855 | ) |  | $ | 9.76 |  |  |  |  |  |  |
Outstanding options, March 31, 2026 |  |  | 38,959,937 |  |  | $ | 3.64 |  |  |  | 9.53 |  |  | $ | 27,556,141 |
Options vested and exercisable, March 31, 2026 |  |  | 1,555,511 |  |  | $ | 8.65 |  |  |  | 7.19 |  |  | $ | 506,292 |
Total unrecognized compensation cost related to non-vested stock options as of March 31, 2026, was approximately $97.4 million and is expected to be recognized within future operating results over a weighted-average period of 3.53 years. The weighted average grant date fair value of options granted during the three months ended March 31, 2026, was $3.61 per share. During the three months ended March 31, 2026, 150,849 options vested with a fair value totaling $0.5 million. There were no stock options granted during the three months ended March 31, 2025. During the three months ended March 31, 2025, 281,812 options vested with a fair value totaling $1.1 million. The estimated fair value of stock options granted to employees and consultants during the three months ended March 31, 2026 and 2025, were calculated using the Black-Scholes option-pricing model using the following assumptions:
|  | For The Three Months Ended March 31,
|  | 2026 |  | 2025
Expected volatility |  | 90.7 - 102.0 |  | % |  | * | %
Weighted-average volatility |  |  | 101.7 |  | % |  | * | %
Expected dividends |  | — |  | % |  | * | %
Expected term (in periods) |  | 6.00 - 6.08 |  |  |  | * |
Risk-free rate |  | 3.81 - 3.94 |  | % |  | * | %
* No options were granted during the three months ended March 31, 2025. Restricted Stock Stock award activity for employees and non-employees under the Equity Compensation Plans for the three months ended March 31, 2026, was as follows:
|  | Number of shares |  |  | Weighted Average Grant Date Fair Value |
Unvested as of December 31, 2025 |  |  | 14,639 |  |  | $ | 8.93 |
Vested and issued |  |  | (4,180 | ) |  | $ | 11.56 |
Unvested as of March 31, 2026 |  |  | 10,459 |  |  | $ | 7.88 |
At March 31, 2026, the Company had an aggregate of $0.1 million of unrecognized equity-based compensation related to restricted stock units (“RSUs”) outstanding. During the three months ended March 31, 2026, a total of 4,180 RSUs vested. The aggregate fair value of RSUs vested during the three-month period was approximately $48 thousand. Of the 4,180 RSUs issued, 1,163 units were withheld and returned to the Company in satisfaction of employee payroll withholding tax obligations. For the three months ended March 31, 2026, the Company issued a net total of 3,017 RSUs. The unrecognized expense for restricted stock units is expected to be recognized within future operating results over a weighted average period of 0.76 years. Stock-based compensation expense Stock-based compensation expense for the three months ended March 31, 2026 and 2025, was as follows:
|  | For The Three Months Ended March 31, |
|  | 2026 |  |  | 2025 |
Research and development |  | $ | 2,861,910 |  |  | $ | 332,289 |
General and administrative |  |  | 2,598,001 |  |  |  | 280,662 |
Total |  | $ | 5,459,911 |  |  | $ | 612,951 |

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