As part of the Company’s IPO, the Company adopted and approved the 2021 Incentive Award Plan, which has been subsequently amended and restated three times (as accordingly amended and restated, the “2021 Incentive Plan”). Under the 2021 Incentive Plan, the Company may grant cash and equity incentive awards to employees and eligible service providers in order to attract, motivate and retain the talent for which the Company competes.

RSUs are taxable upon vesting based on the market value on the date of vesting. The Company is required to make mandatory tax withholding for the payment and satisfaction of income tax, social security tax, payroll tax, or payment on account of other tax related to withholding obligations that arise by reason of vesting of an RSU. The taxable income is calculated by multiplying the number of vested RSUs for each individual by the closing share price as of the vesting date and a tax liability is calculated based on each individual’s tax bracket. During the six months ended June 30, 2025, a total of 352,927 RSUs vested for Class A common stock shares. Of that amount, the Company withheld 136,057 Class A common stock shares to satisfy employee tax liabilities. During the year ended December 31, 2024, a total of 566,904 RSUs vested for Class A common stock shares. Of that amount, the Company withheld 142,306 Class A common stock shares to satisfy employee tax liabilities. The shares withheld are available for reissuance pursuant to the 2021 Incentive Plan. Each RSU grant made during the six months ended June 30, 2025 and during 2024 was expensed ratably over its respective vesting period, with prorated adjustments made as needed to align with grant dates and the applicable service periods.

As of June 30, 2025, and December 31, 2024, the Company had 704,817 and 806,001, respectively of RSUs outstanding (unvested).

RSU activity for the six months ended June 30, 2025, was as follows:


	Number of RSUs
Outstanding (unvested) at December 31, 2024		806,001
RSU granted		331,243
RSUs vested		(352,927	)
RSU expired/forfeited		(79,500	)
Outstanding (unvested) at June 30, 2025		704,817

Stock options may be granted under the 2021 Incentive Plan. The exercise price of options is equal to the fair market value of the Company’s Class A common stock as of the grant date. Options historically granted have generally become exercisable over three or four years and expire ten years from the date of grant.

As of June 30, 2025, other than two awards, discussed below, granted to the Company's CSO, there have been no stock options granted during 2025 under the 2021 Incentive Plan. The fair value of the options issued to the Company's CSO were estimated using the Black-Scholes option-pricing model and had the following assumptions: a dividend yield of 0%; an expected life of 5 years; volatility of 75.86%; and risk-free interest rate based on the grant date of 4.02%. The fair value of the options issued during 2024 were estimated using the Black-Scholes option-pricing model and had the following assumptions: a dividend yield of 0%; an expected life of 10 years; volatility ranging from 79%-95%; and risk-free interest rate based on the grant date ranging from of 3.79% to 4.52%. Each option grant is being expensed ratably over the option vesting periods, with prorated adjustments made as needed to align with grant dates and applicable service period.

As of June 30, 2025 and December 31, 2024, the Company has recorded issued and outstanding options to purchase a total of 375,618 and 121,186 shares of Class A common stock, respectively, pursuant to the 2021 Incentive Plan, at a weighted average exercise price of $5.77 and $15.09 per share, respectively.

For the six months ended June 30, 2025:


	Number of Stock Options
Stock options vested (based on ratable vesting)		47,672
Stock options unvested		327,946
Total stock options outstanding at June 30, 2025		375,618

For the year ended December 31, 2024:


	Number of Stock Options
Stock options vested (based on ratable vesting)		31,713
Stock options unvested		89,473
Total stock options outstanding at December 31, 2024		121,186

Stock option activity for the six months ended June 30, 2025, was as follows:


	Number of Stock Options			Weighted Average Exercise Price
Outstanding at December 31, 2024		121,186		$	15.09
Options granted		256,132			1.45
Options exercised		—			—
Options expired/forfeited		(1,700	)		17.65
Outstanding at June 30, 2025		375,618		$	5.77

For the three months ended June 30, 2025 and 2024, the equity-based compensation expense amounted to approximately $0.5 million and $0.2 million, respectively, and for the six months ended June 30, 2025 and 2024, the equity-based compensation expense amounted to approximately $0.9 million and $0.5 million, respectively, which is included in the research and development and general and administrative expenses in the condensed statements of operations for the three and six months ended June 30, 2025 and 2024, respectively.

As of June 30, 2025, the remaining unrecognized RSUs compensation of approximately $1.2 million will be recognized over approximately 1.65 years. The remaining unrecognized stock options compensation of approximately $0.2 million will be recognized over approximately 1.66 years.