v3.25.1
Accounting for Share-Based Payments
 3 Months Ended
Mar. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Accounting for Share-Based Payments

8. Accounting for Share-Based Payments

 

On June 3, 2013, we adopted the 2013 Equity Incentive Plan (the 2013 Plan), which expired in June 2023 and we are no longer making grants under it. Stock options granted under the 2013 Plan typically vest after three years of continuous service from the grant date and will have a contractual term of ten years.

 

In April 2023, our board of directors approved the 2023 Omnibus Equity Incentive Plan (the 2023 Plan), which became effective in June 2023 upon stockholder approval. The 2023 Plan allows for the grant of up to 500,000 awards for the purpose of attracting, motivating and retaining employees (including officers), non-employee directors and non-employee consultants. On March 6, 2024 pursuant to the 2023 Plan, we granted 1,000 RSUs with a fair value of $114.50 per share, which vest upon the earlier of (i) one 1 year after date of grant or (ii) change of control of the Company. The RSUs vested in March 2025.

 

In addition, during the three months ended March 31, 2024, the Company granted 6,800 options with a term of 2 to 10 years that were vested upon issuance. Subsequent to the grant of these options, we had 1,460 awards available for grant from the 2023 Plan.

 

We classify stock-based compensation expense in our consolidated statement of operations in the same way the award recipient’s payroll costs are classified or in which the award recipients’ service payments are classified. We recorded stock-based compensation expense as follows:

 

 

HEPION PHARMACEUTICALS, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

 

   2025   2024 
   Three Months Ended
March 31,		 
   2025   2024 
General and administrative  $20,783   $705,770 
Total stock-based compensation expense  $20,783   $705,770 

 

A summary of stock option activity under the 2013 Plan and 2023 Plan is presented as follows:

 

   Number of Options  

Weighted

Average Exercise Price Per Share

  

Intrinsic

Value

  

Weighted

Average Remaining Contractual Term

 
Balance outstanding, December 31, 2024   7,813   $382.00   $—    8.75 years 
Granted   —   $—   $—      
Forfeited   —   $—   $—      
Balance outstanding, March 31, 2025   7,813   $382.00   $—    8.50 years 
Awards outstanding, vested awards and those expected to vest at March 31, 2025   7,813   $382.00   $—    8.50 years 
Vested and exercisable at March 31, 2025   7,793   $381.00   $—    8.51 years 

 

The total fair value of awards vested during the three months ended March 31, 2025 and 2024 was $0 and $0.7 million, respectively.

 

As of March 31, 2025, the unrecognized compensation cost related to non-vested stock options outstanding, net of expected forfeitures, was $0.0 million.