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Stock Based Compensation | 3 Months Ended
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Mar. 31, 2025
Share-Based Payment Arrangement [Abstract] |
Stock Based Compensation | 9. Stock Based Compensation ASC 718 requires compensation expense associated with share-based awards to be recognized over the requisite service period which, for the Company, is the period between the grant date and the date the award vests or becomes exercisable. The Company recognizes all share-based awards under the straight-line attribution method, assuming that all granted awards will vest. Forfeitures are recognized in the periods when they occur. Stock based compensation has been reported within expense line items on the consolidated statement of operations for the three months ended March 31, 2025 and 2024 as shown in the following table (in $000s): Schedule of Stock Based Compensation Expense
|  | 2025 |  |  | 2024 |
|  | Three Months Ended |
|  | March 31, |
|  | 2025 |  |  | 2024 |
General and administrative |  | $ | 1,592 |  |  | $ | 149 |
Research and development |  |  | 74 |  |  |  | 54 |
Stock-based compensation costs |  | $ | 1,666 |  |  | $ | 203 |
2018 Plan In May 2018, the Company’s stockholders approved the 2018 Equity Incentive Plan (the “2018 Plan”), under which Cyclacel may make equity incentive grants to its officers, employees, directors and consultants. The 2018 Plan allows for various types of award grants, including stock options and restricted stock units. On February 6, 2025, the Company’s stockholders approved an amendment to the 2018 Plan to reserve an additional 500,000 shares of Common Stock for issuance thereunder, which number would not be adjusted as a result of the Reverse Stock Split. As of March 31, 2025, the Company has reserved approximately 468,000 shares of the Company’s common stock under the 2018 Plan for future issuances. Stock option awards granted under the Company’s equity incentive plans have a maximum life of 10 years and generally vest over a one to four-year period from the date of grant. 2020 Inducement Equity Incentive Plan In October 2020, the Inducement Equity Incentive Plan (the “Inducement Plan”), became effective. Under the Inducement Plan, Cyclacel may make equity incentive grants to new senior level Employees (persons to whom the Company may issue securities without stockholder approval). The Inducement Plan allows for the issuance of up to 13,333 shares of the Company’s common stock (or the equivalent of such number). As of March 31, 2025, there were no shares issued under the Inducement Plan, leaving a remaining reserve of 13,333 shares. Option Awards Granted Outside of the 2018 Plan and Inducement Plan During February 2025, the Company issued stock option awards to employees and consultants outside of the 2018 Plan and the Inducement Plan. The shares underlying these options are not registered for resale. All of the options granted outside of the 2018 Plan and Inducement Plan vest immediately upon grant and can be exercised beginning three months from the recipient’s Termination Date through the expiry of the option awards, which is ten years from the grant date. The Termination Date is defined as the date on which an award recipient ceases to be an employee, director or consultant of the Company or of an Affiliate for any reason other than the death or disability, or termination of the recipient for cause. Option Grants and Exercises There were 5,956,366 options granted during the three months ended March 31, 2025. Of these awards, 256,366 were issued under the 2018 Plan and the rest were issued outside of the 2018 Plan and the Inducement Plan. Options granted during the three months ended March 31, 2025 had a grant date fair value ranging between $0.25 and $0.30 per option. There were 12,500 options granted under the 2018 Plan during the three months ended March 31, 2024. These options had a grant date fair value of $1.77 per option. The fair value of the stock options granted is calculated using the Black-Scholes option-pricing model as prescribed by ASC 718 using the following assumptions: Schedule of Assumptions Used for Fair Value of the Stock Options Granted Using Black-Scholes Option-Pricing Model
|  | Three months ended |  |  | Three months ended |
|  | March 31, 2025 |  |  | March 31, 2024 |
Expected term (years) |  |  | 5 - 10 |  |  |  | 6 |
Risk free interest rate |  |  | 4.060%  –4.250 | % |  |  | 3.995 | %
Volatility |  |  | 100% –107 | % |  |  | 93 | %
Expected dividend yield over expected term |  |  | 0.00 | % |  |  | 0.00 | %
Resulting weighted average grant date fair value |  | $ | 0.29 |  |  | $ | 1.77 |
There were no stock options exercised during each of the three months ended March 31, 2025 and 2024, respectively. The Company does not expect to be able to benefit from the deduction for stock option exercises that may occur because the company has tax loss carryforwards from prior periods that would be expected to offset any potential taxable income. Outstanding Options A summary of the share option activity and related information is as follows: Schedule of Share Option Activity
|  |  |  |  |  |  |  | Weighted |  |  |  |
|  |  |  |  | Weighted |  |  | Average |  |  |  |
|  | Number of |  |  | Average |  |  | Remaining |  |  | Aggregate |
|  | Options |  |  | Exercise |  |  | Contractual |  |  | Intrinsic |
|  | Outstanding |  |  | Price Per Share |  |  | Term (Years) |  |  | Value ($000) |
Options outstanding at December 31, 2024 |  |  | 118,489 |  |  | $ | 44.41 |  |  |  | 7.20 |  |  | $ | — |
Granted |  |  | 5,956,366 |  |  | $ | 0.29 |  |  |  | — |  |  | $ | — |
Exercised |  |  | — |  |  | $ | — |  |  |  | — |  |  | $ | — |
Cancelled/forfeited |  |  | (12,615 | ) |  | $ | 9.33 |  |  |  | — |  |  | $ | — |
Options outstanding at March 31, 2025 |  |  | 6,062,240 |  |  | $ | 1.15 |  |  |  | 9.76 |  |  | $ | — |
Unvested at March 31, 2025 |  |  | 5,020 |  |  | $ | 8.73 |  |  |  | — |  |  | $ | — |
Vested and exercisable at March 31, 2025 |  |  | 6,057,220 |  |  | $ | 1.15 |  |  |  | 9.77 |  |  | $ | — |
Restricted Stock Units No restricted stock units were issued during the three months ended March 31, 2025. The Company issued 12,500 restricted stock units during the three months ended March 31, 2024. These restricted stock units vested monthly over a six-month 6 service period. These restricted stock units were valued at $2.28 at the date of grant, which was equivalent to the market price of a share of the Company’s common stock on that date. A total of 17,127 restricted stock units were issued in January 2023. These units vest on the third anniversary of their date of grant, or earlier if certain defined clinical trial related performance targets are met. A three-year 3 vesting assumption was applied to these restricted stock units as satisfaction of the performance conditions is not probable at this time. Each restricted stock unit was valued at $13.50 at the date of grant, which was equivalent to the market price of a share of the Company’s common stock on that date. As of March 31, 2025, all but 3,198 of the original awards granted have been forfeited due to the recipient’s termination of service with the Company. In the three months ended March 31, 2025, the Company reduced stock compensation cost, a component of selling general, and administrative expense, by approximately $61,000 as a result of forfeitures of these awards during that period. Summarized information for restricted stock units as of March 31, 2025 is as follows: Schedule of Restricted Stock Units Activity
|  |  |  |  | Weighted |  |  | Weighted |
|  |  |  |  | Average |  |  | Average |
|  | Restricted |  |  | Grant Date |  |  | Remaining |
|  | Stock Units |  |  | Value per share |  |  | Term |
Restricted Stock Units outstanding at December 31, 2024 |  |  | 39,414 |  |  | $ | 12.01 |  |  |  | 8.30 years |
Granted |  |  | 0 |  |  | $ | 0 |  |  |  |  |
Cancelled/forfeited |  |  | (6,748 | ) |  | $ | 13.75 |  |  |  |  |
Restricted Stock Units outstanding at March 31, 2025 |  |  | 32,666 |  |  | $ | 11.65 |  |  |  | 8.09 years |
Unvested at March 31, 2025 |  |  | 3,198 |  |  | $ | 13.50 |  |  |  | 7.82 years |
Vested at March 31, 2025 |  |  | 29,468 |  |  | $ | 11.45 |  |  |  | 8.12 years |

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