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Stock Plans
 9 Months Ended
Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Stock Plans

 

2.Stock Plans

 

The following table summarizes option activity:

 

                    
   Options
(in thousands)		   Weighted Average
Exercise Price
per share		   Weighted Average
Remaining Option
Term (in years)		   Aggregate Intrinsic
Value
(in thousands)		 
Outstanding at December 31, 2022   927   $7.97    8.34   $- 
Granted   1,475    0.93    -    235 
Forfeited or expired   (91)   23.01    -    - 
Outstanding at September 30, 2023   2,311    2.89    8.84    213 
Exercisable at September 30, 2023   2,311    2.89    8.84    213 

 

During August and September 2022, our Board granted 125,000 options to purchase common stock at $1.52 per share and 900,000 options to purchase common stock at $1.31 per share which are subject to shareholder approval of an amendment to increase the number of shares reserved for issuance under our 2015 Plan. The options vest monthly over a 12-month period from the grant dates. The shares underlying these options were approved by our stockholders on June 29, 2023 and have been included in the table above as of September 30, 2023.

 

In July 2023, our Board granted, pursuant to our Fifth Amended and Restated 2015 Omnibus Equity Incentive Plan, an aggregate of 450,000 shares of fully vested unrestricted common stock to seven members of the Board of Directors and one member of the management team. As a result, we recognized non-cash stock compensation of approximately $0.2 million during the three months ending September 30, 2023.

 

The following table summarizes the stock-based compensation expense recorded for awards under our stock option plans (in thousands):

 

                    
   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
(in thousands)  2023   2022   2023   2022 
Research and development  $52   $306   $106   $553 
Selling, general and administrative   359    217    859    414 
Total stock-based compensation  $411   $523   $965   $967 

 

We use the Black-Scholes-Merton option-pricing model with the following assumptions to estimate the fair value of our stock options:

 

                    
   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2023   2022   2023   2022 
Weighted-average risk-free interest rate   4.08%   -%   4.06%   1.91%
Expected dividend payments   -    -    -    - 
Expected holding period (years)1   4.8    -    5.3    5.3 
Weighted-average volatility factor2   1.14    -    1.10    1.16 
Estimated forfeiture rates for options granted3   7.5%   -%   7.0%   5.6%

 

 
(1) Expected holding period is based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and the expectations of future employee behavior.
(2) Weighted average volatility is based on the historical volatility of our common stock.
(3) Estimated forfeiture rates are based on historical data.

 

As of September 30, 2023, there was no unrecognized compensation expense related to non-vested stock options.