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Stock-Based Compensation
 3 Months Ended
Mar. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation

Note 8. Stock-Based Compensation

 

The Company has long-term compensation plans that permit the granting of equity-based awards in the form of stock options, restricted stock, restricted stock units, stock appreciation rights, other stock awards, and performance awards.

 

In 2018, stockholders approved the Imunon, Inc. 2018 Stock Incentive Plan (the “2018 Plan”). The 2018 Plan, as amended, permits the granting of 1,970,000 shares of Imunon common stock as equity awards in the form of incentive stock options, nonqualified stock options, restricted stock, restricted stock units, stock appreciation rights, other stock awards, performance awards, or in any combination of the foregoing.

 

As of March 31, 2025, there were a total of 1,975,073 shares of Imunon common stock reserved for issuance under the 2018 Plan, which were comprised of 1,751,551 shares of Imunon common stock subject to equity awards previously granted under the 2018 Plan and the Company’s 2007 Stock Incentive Plan and 223,522 shares of Imunon common stock available for future issuance under the 2018 Plan.

 

As of March 31, 2025, the Compensation Committee of the Board of Directors approved the grant of inducement stock options (the “Inducement Option Grants”) to purchase a total of 230,500 shares of Imunon common stock. Each Inducement Option Grant has a weighted exercise price of $0.98 per share. Each Inducement Option Grant vests over three years, with one-third vesting on the one-year anniversary of the employee’s first day of employment with the Company and one-third vesting on the second and third anniversaries thereafter, subject to the new employee’s continued service relationship with the Company on each such date. Each Inducement Option Grant has a ten-year term and is subject to the terms and conditions of the applicable stock option agreement.

 

Total compensation cost related to stock options and restricted stock awards was approximately $0.2 million of expense for period ended March 31, 2025 and $31,000 reversal for period ended March 31, 2024. Of these amounts, approximately $49,000 for the period ended March 31, 2025 and $65,000 for the period ended March 31, 2024 were charged to research and development expenses and $0.2 million of expense for the period ended March 31, 2025 and $96,000 reversal of expense for the period ended March 31, 2024 were charged to general and administrative expenses.

 

 

A summary of stock option awards and restricted stock grants, inclusive of awards granted under the 2018 Stock Plan and Inducement Option Grants for the three-months ended March 31, 2025 is presented below:

 

   Stock Options   Restricted Stock Awards  

Weighted

Average

 
  

Options

Outstanding

  

Weighted

Average

Exercise

Price

  

Non-vested

Restricted

Stock

Outstanding

  

Weighted

Average

Grant

Date

Fair Value

  

Contractual

Terms of

Equity

Awards

(in years)

 
Equity awards outstanding at January 1, 2025   1,645,873   $1.95    39,700   $0.99      
                          
Equity awards granted   321,750   $0.86    -   $-      
                          
Equity awards terminated   (25,272)  $1.49    -   $-      
                          
Equity awards outstanding at March 31, 2025   1,942,351   $1.78    39,700   $0.99    8.7 
                          
Equity awards exercisable at March 31, 2025   1,095,121   $2.30              8.3 
                          
Aggregate intrinsic value of equity awards exercisable at March 31, 2025  $19,431                     

 

As of March 31, 2025, there was $0.5 million of total unrecognized compensation cost related to non-vested stock-based compensation arrangements. That cost is expected to be recognized over a period of three 3to four years. The weighted average grant date fair values of the stock options granted were $0.81 during the three-month periods ended March 31, 2025.

 

The fair values of stock options granted were estimated at the date of grant using the Black-Scholes option pricing model. The Black-Scholes model was originally developed for use in estimating the fair value of traded options, which have different characteristics from the Company’s stock options. The model is also sensitive to changes in assumptions, which can materially affect the fair value estimate. The Company used the following assumptions for determining the fair value of options granted under the Black-Scholes option pricing model:

 

  

For the Three Months Ended

March 31,

 
   2025   2024 
Risk-free interest rate   4.31 to 4.55%   4.31%
Expected volatility   

110.74 to 115.63

%   111.82%
Expected life (in years)   9.0 to 10.0     9.0 to 10.0  
Expected dividend yield   0.0%   0.0%

 

Expected volatilities utilized in the model are based on historical volatility of the Company’s stock price. The risk-free interest rate is derived from values assigned to U.S. Treasury bonds with terms that approximate the expected option lives in effect at the time of grant.