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STOCK-BASED COMPENSATION
 3 Months Ended
Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION

Note 10. STOCK-BASED COMPENSATION

 

The Company grants options under its 2014 Equity Incentive Plan (the “Plan”). Under the Plan, the Company is authorized to grant options for up to 1.1 million shares of Common Stock. The Company has reserved 1.0 million shares to be used under the Plan. Options may be granted to employees, the Company’s board of directors, and external consultants who provide services to the Company. Options granted under the Plan have vesting schedules with terms of one to three years and become fully exercisable based on specific terms imposed at the date of grant. The Plan will terminate according to the respective terms of the Plan in September 2026.

 

The Company has recorded stock-based compensation expense (credit) related to the issuance of stock option awards in the following line items in the accompanying condensed consolidated statement of operations:

 

   2023   2022 
   Three Months Ended
March 31,		 
   2023   2022 
         
Research and development  $11,268   $4,643 
General and administrative   146,345    101,404 
Total stock-based compensation expense  $157,613   $106,047 

 

The following table summarizes stock option activity under the Plan:

 

   Number of
options		   Weighted-average
exercise price		   Weighted-average
remaining
contractual term
(in years)		   Aggregate
intrinsic value		 
Outstanding at December 31, 2022   806,392   $4.33           
Granted   —    —           
Exercised   —    —           
Forfeited   —    —           
Outstanding at March 31, 2023   806,392   $4.33    3.8   $271,298 
                     
Vested and exercisable at March 31, 2023   803,218   $4.31    3.7   $271,298 

 

 

As of March 31, 2023, there was no unrecognized compensation cost related to non-vested stock options. During the three months ended March 31, 2023 and 2022, no options were exercised. During the three months ended March 31, 2023, no options were issued by the Company to purchase shares of Common Stock. During the three months ended March 31, 2022, the Company issued options to purchase 7,142 shares of Common Stock. The per share weighted-average fair value of the options granted during 2022 was estimated at $2.84 on the date of grant.

 

During the three months ended March 31, 2023, the Company issued restricted stock units (RSUs) for 64,016 shares of Common Stock to employees, non-employees and the board of directors. The shares vest in equal monthly installments over terms of between immediately up to one year, subject to the employees and non-employees providing continuous service through the vesting date. During the three months ended March 31, 2023, approximately 82,000 shares vested from RSUs previously issued.

 

During the three months ended March 31, 2022, the Company issued RSUs for 14,999 shares of Common Stock to employees and non-employees. The shares vest in equal monthly installments over terms of between immediately up to one year, subject to the employees and non-employees providing continuous service through the vesting date. During the three months ended March 31, 2022, approximately 16,000 shares vested from RSUs previously issued.

 

The following table summarizes weighted-average assumptions using the Black-Scholes option-pricing model used on the date of the grants issued during the three months ended March 31, 2022:

 

   2022 
Fair value of Common Stock  $4.62 
Volatility   63.9%
Expected term (years)   6.0 
Risk-free interest rate   2.20%
Dividend yield   0%