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Stock-Based Compensation | 9 Months Ended
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Sep. 30, 2025
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | Stock-Based Compensation Equity Incentive Plans The Company's Board of Directors (the "Board") adopted the 2014 Equity Incentive Plan (the "2014 Plan") and the Employee Stock Purchase Plan (the “ESPP”) and the Company's Stockholders approved the 2014 Plan and ESPP in February 2015. The Board subsequently adopted the 2024 Equity Incentive Plan (the "2024 Plan") and the Company's Stockholders approved the Plan in May 2024. Following adoption of the 2024 Plan, no further grants were made under the 2014 Plan. In May 2025, the Board determined that the potential future benefits of the ESPP were outweighed by the costs of its administration and terminated the ESPP effective as of April 30, 2025. Consistent with the 2014 Plan, the 2024 Plan provides for the granting of stock options (incentive and nonqualified), restricted stock or other stock-based awards to employees, officers, directors, consultants, and advisors. The Board is responsible for administration of the 2024 Plan. The Company’s Board determines the term of each option, the option exercise price, the number of shares for which each option is granted and the rate at which each option is exercisable. Incentive stock options may be granted to any officer or employee at an exercise price per share of not less than the fair value per common share on the date of the grant (not less than 110% of fair value in the case of holders of more than 10% of the Company’s voting stock) and with a term not to exceed ten years from the date of the grant (five years for incentive stock options granted to holders of more than 10% of the Company’s voting stock). Nonqualified stock options may be granted to any officer, employee, consultant, or director at an exercise price per share of not less than the par value per share. In January 2025, the number of shares of common stock issuable under the 2024 Plan automatically increased by 120,031 shares pursuant to the terms of the 2024 Plan. As of September 30, 2025, the maximum number of shares of Common Stock that may be issued pursuant to the 2024 Plan was 853,133 of which 280,892 shares were available for awards. Stock-based compensation expense is presented in the same expense line items as cash compensation paid and for the three and nine months ended September 30, 2025 and 2024 is as follows:
| Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Research and Development | $ | 99,801 |  |  | $ | 98,292 |  |  | $ | 283,438 |  |  | $ | 286,955 |
General and Administrative | 154,597 |  |  | 72,884 |  |  | 382,350 |  |  | 209,458 |
Total Stock-Based Compensation Expense | $ | 254,398 |  |  | $ | 171,176 |  |  | $ | 665,788 |  |  | $ | 496,413 |
Stock Options The Company grants time-based stock options which generally vest one-third of the underlying shares on the one-year anniversary of the grant date and the remainder ratably over a 24-month period. The fair value of time-based stock options is determined using the Black-Scholes Option Pricing Model, with such value recognized as expense over the service period, which is typically three years, net of actual forfeitures. A summary of the Company's assumptions used in determining the fair value of the stock options granted during the nine months ended September 30, 2025 and 2024 is shown in the following table:
| Nine months ended September 30,
| 2025 |  | 2024
Risk-Free Interest Rate | 3.97 | % |  | 4.44 | %
Expected Life (years) | 6 |  | 6
Expected Stock Price Volatility | 136.6 | % |  | 140 | %
Expected Dividend Yield | — | % |  | — | %
The weighted-average grant date fair value of options granted for the nine months ended September 30, 2025 was $2.68. The expected term of the options granted is based on management's estimate. Expected volatility is based on the historical volatility of the Company’s common stock. The risk-free interest rate is determined based upon a constant U.S. Treasury security rate with a contractual life that approximates the expected term of the option. Unamortized compensation expense related to the options amounted to $0.6 million as of September 30, 2025 and is expected to be recognized over a weighted average period of approximately 2.45 years. Following is a summary of stock option activity for the nine months ended September 30, 2025:
| Number of Options |  | Weighted- Average Exercise Price |  | Weighted- Average Remaining Term in Years
Outstanding at December 31, 2024 | 161,303 |  | $ | 21.15 |  |  | 9.00
Granted | 246,885 |  | $ | 2.93 |  |  |
Expired | (34) |  | $ | 22,645.06 |  |  |
Outstanding at September 30, 2025 | 408,154 |  | $ | 8.24 |  |  | 9.01
Exercisable and vested at September 30, 2025 | 104,359 |  | $ | 22.39 |  |  | 8.12
The stock options outstanding and exercisable as of September 30, 2025 had no aggregate intrinsic value. The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the market price of the Company’s common stock for options that had exercise prices lower than $2.78, the closing price of the Company’s stock on September 30, 2025. Restricted Stock Awards Restricted stock compensation expense is recognized over the vesting period, which is typically one-third of the underlying shares on the one-year anniversary of the grant date and the remainder ratably over a 24-month period. Unamortized compensation expense related to the restricted stock awards amounted to $0.2 million as of September 30, 2025 and is expected to be recognized over a weighted average period of approximately 2.21 years. The following is a summary of restricted stock activity for the nine months ended September 30, 2025:
| Number of Units |  | Weighted- Average Grant Date Fair Value |  | Weighted- Average Remaining Term in Years
Non-vested Outstanding at December 31, 2024 | 46,697 |  | $ | 7.56 |  |  | 2.19
Awarded | 43,069 |  | $ | 2.93 |  |  |
Released | (17,879) |  | $ | 7.37 |  |  |
Non-vested Outstanding at September 30, 2025 | 71,887 |  | $ | 4.83 |  |  | 2.09

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- Definition The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP). + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 505 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/505/tableOfContent + Details
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