Quarterly report pursuant to Section 13 or 15(d)

Stock Plans

v3.23.1
Stock Plans
3 Months Ended
Mar. 31, 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     $ -  
Forfeited or expired     (16 )     119.39       -       -  
Outstanding at March 31, 2023     911       6.06       8.12          
Exercisable at March 31, 2023     911       6.06       8.12       -  

 

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. As the shares underlying these options have not been approved by our stockholders, they have been excluded from the table above as of March 31, 2023.

 

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

 

               
    Three Months Ended  
  March 31,  
(in thousands)   2023     2022  
Research and development   $ 28     $ 123  
Selling, general and administrative     262       103  
Total stock-based compensation   $ 290     $ 226  

 

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  
    March 31,  
    2023     2022  
Weighted-average risk-free interest rate     - %     1.47 %
Expected dividend payments     -       -  
Expected holding period (years) 1     -       5.4  
Weighted-average volatility factor 2     -       113.2  
Estimated forfeiture rates for options granted 3     - %     5.14 %

 

 
(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 March 31, 2023, there was approximately $0.6 million of total unrecognized compensation expense related to non-vested stock options subject to shareholder approval. This expense is expected to be recognized over a weighted-average period of approximately 0.5 year.