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Stock-Based Compensation | 12 Months Ended
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Dec. 31, 2022
Stock-Based Compensation |
Stock-Based Compensation | 12. Stock-Based Compensation Employee Equity Plans The NextCure, Inc. 2015 Omnibus Incentive Plan (the “2015 Plan”) was adopted in December 2015 and provides for the grant of awards of stock options, restricted stock awards, unrestricted stock awards and restricted stock units to employees, consultants and directors of the Company. The 2015 Plan is administered by the board of directors or, at the discretion of the board of directors, by a committee of the board of directors. On May 3, 2019, the Company’s stockholders approved the NextCure, Inc. 2019 Omnibus Incentive Plan (as amended, the “2019 Plan”), which became effective on May 8, 2019, the date on which the Company’s Registration Statement on Form S-1 (Reg. No. 333-230837) was declared effective (the “Effective Date”). The Company’s board of directors (the “Board”) determined not to make additional awards under the 2015 Plan following the effectiveness of the 2019 Plan. The 2019 Plan provides for the grant of awards of stock options, stock appreciation rights, restricted stock, restricted stock units, deferred stock units, unrestricted stock, dividend equivalent rights, other equity-based awards and cash bonus awards to the Company’s officers, employees, non-employee directors and other key persons (including consultants). The number of shares of common stock reserved for issuance under the 2019 Plan is 2,900,000 plus the number of shares of stock related to awards outstanding under the 2015 Plan that subsequently terminate by expiration or forfeiture, cancellation or otherwise without the issuance of such shares. The number of shares reserved for issuance under the 2019 Plan will automatically increase each January 1st during the term of the 2019 Plan by 4% of the number of shares of the Company’s common stock outstanding on December 31st of the preceding calendar year or such lesser number of shares determined by the Board. As of December 31, 2022, 2,653,867 shares were reserved for future issuance under the 2019 Plan. Stock options granted under the 2015 Plan and 2019 Plan (together, the “Plans”) to employees generally vest over four years and expire after 10 years. A summary of stock option activity for awards under the Plans is presented below: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Options Outstanding and Exercisable
​ | ​ | ​ | ​ | ​ | ​ | ​ | Weighted | ​ | ​ | ​
​ | ​ | ​ | ​ | Weighted | ​ | Average | ​ | Aggregate
​ | ​ | ​ | ​ | Average | ​ | Remaining | ​ | Intrinsic
​ | ​ | Number of | ​ | Exercise | ​ | Contractual | ​ | Value(1)
​ |  | Shares |  | Price |  | Life (Years) |  | (in thousands)
Outstanding as of January 1, 2021 | ​ | 3,112,376 | ​ | $ | 16.95 | ​ | 8.2 | ​ | $ | 10,810
Granted |  | 2,020,718 | ​ | $ | 10.89 |  | — | ​ |  | —
Exercised | ​ | (105,731) | ​ | $ | 1.62 | ​ | — | ​ | ​ | —
Forfeitures | ​ | (481,569) | ​ | $ | 21.33 | ​ | — | ​ | ​ | —
Outstanding as of December 31, 2021 |  | 4,545,794 | ​ | $ | 14.15 |  | 8.1 | ​ | $ | 2,860
Granted | ​ | 1,739,350 | ​ | $ | 5.34 | ​ | — | ​ | ​ | —
Exercised | ​ | (50,420) | ​ | $ | 1.32 | ​ | — | ​ | ​ | —
Forfeitures | ​ | (972,545) | ​ | $ | 13.77 | ​ | — | ​ | ​ | —
Outstanding as of December 31, 2022 | ​ | 5,262,179 | ​ | $ | 11.44 | ​ | 7.6 | ​ | $ | 115
Exercisable as of December 31, 2022 |  | 2,790,206 | ​ | $ | 12.97 |  | 6.6 | ​ | $ | 115
| (1) | The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the fair value of the common stock for the options that were in the money at December 31, 2022 and 2021.
The weighted average grant date fair value per share of stock options granted during the years ended December 31, 2022 and 2021 was $3.69 and $7.47 respectively. The aggregate intrinsic value of stock options exercised during the years ended December 31, 2022 and 2021 was $13,000 and $0.5 million, respectively. The aggregate grant date fair value of stock options and restricted stock vested during the year ended December 31, 2022 and 2021 was approximately $11.0 million and $13.4 million, respectively. ​ On May 3, 2019, the Company’s stockholders approved the NextCure, Inc. 2019 Employee Stock Purchase Plan (the “ESPP”), which became effective on the Effective Date. The ESPP is intended to qualify as an “employee stock purchase plan” within the meaning of Section 423(b) of the Internal Revenue Code. A total of 240,000 shares of common stock were reserved for issuance under this plan. In addition, the number of shares of common stock that may be issued under the ESPP will automatically increase each January 1st until expiration of the ESPP, in an amount equal to the lesser of (i) 1% of the number of shares of the Company’s common stock outstanding on December 31st of the preceding calendar year, (ii) 480,000 shares of common stock and (iii) a number of shares of common stock determined by the administrator of the ESPP. As of December 31, 2022, 49,583 shares of common stock had been issued pursuant to the ESPP and 741,097 shares were reserved for future issuance thereunder. Stock-Based Compensation The Company recorded stock-based compensation expense of $9.5 million and $10.3 million during the years ended December 31, 2022 and 2021, respectively. As of December 31, 2022, there was $14.7 million of unrecognized compensation cost related to unvested stock-based compensation arrangements granted under the Plans. This remaining compensation expense is expected to be recognized over a weighted-average period of 2.6 years as of December 31, 2022. Stock-based compensation expense recorded as research and development and general and administrative expenses is as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31,
​ | ​ | ​ | ​ | ​ | ​ | ​
(in thousands) | ​ | 2022 |  | 2021
Research and development | ​ | $ | 3,056 | ​ | $ | 4,081
General and administrative | ​ |  | 6,452 | ​ |  | 6,207
Total stock-based compensation expense | ​ | $ | 9,508 | ​ | $ | 10,288
​ The assumptions used in the Black-Scholes option-pricing model for stock options granted were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended | ​
​ | ​ | December 31, | ​
​ |  | 2022 |  | 2021 | ​
Expected term |  | 5.5 - 6.1 | years | ​ | 5.3 - 6.1 | years | ​
Expected volatility |  | 79.7 - 81.4 | % | ​ | 79.7 | % | ​
Risk free interest rate |  | 1.8 - 4.2 | % | ​ | 0.8 - 1.4 | % | ​
Expected dividend yield |  | — | % | ​ | — | % | ​
​

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