v3.25.4
Equity-based Compensation and Equity Incentive Plans
12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Equity-based Compensation and Equity Incentive Plans
(9)
Equity‑based Compensation and Equity Incentive Plans

 

Equity Plans

The Company currently has two active equity plans.

The 2025 Equity Incentive Award Plan (2025 Plan) functions as the primary equity plan for the Company. The 2025 Plan replaced the 2015 Equity Incentive Award Plan (2015 Plan), which terminated on November 10, 2025. The 2025 Plan includes an “evergreen provision” that allows for an annual increase in the number of shares of common stock available for issuance under the 2025 Plan, which annual increase will be added on the first day of each fiscal year of the Company during the period beginning in fiscal year 2026, and ending on the second day of fiscal year 2035, and will be equal to the lesser of (i) four percent of the number of outstanding shares of common stock on such date and an amount determined by the administrator of the 2025 Plan. The 2025 Plan provides for the granting of a variety of stock‑based compensation awards, including stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, deferred stock awards, dividend equivalent awards, stock payment awards, performance awards and other stock‑based awards.

The 2017 Stock Incentive Plan (the 2017 Plan) provides for the grant of incentive stock options, non-qualified stock options, restricted and unrestricted stock awards and other stock-based awards.

The Company was formerly utilizing the 2015 Employee Stock Purchase Plan (ESPP), which allowed eligible employees to purchase shares of the Company’s common stock at a discount through payroll deductions of up to 15% of their eligible compensation, subject to any plan limitations. Due to the corporate restructuring, the purchases for the ESPP offering periods were cancelled during the years ended December 31, 2024 and December 31, 2025.

As of December 31, 2025, there were an aggregate of 1,038,721 shares available for future grant under the 2025 Plan and the 2017 Plan.

Stock Options

There were no stock options issued to employees during the year ended December 31, 2025. The weighted average assumptions used in the Black-Scholes option-pricing model for stock options issued to employees and non-employees under the 2015 Plan and the 2017 Plan, during the year ended December 31, 2024 were:

 

 

 

 

Year Ended December 31,

 

Employees:

 

 

2024

 

Expected term

 

 

5.6 years

 

Weighted-average, risk-free interest rate

 

 

3.9%

 

Expected volatility

 

 

92.0%

 

Dividend yield

 

 

 

 

 

 

 

 

The following table summarizes stock option activity under the 2015 (replaced by the 2025 Plan) and 2017 Plans.

 

 

 

Stock options outstanding

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

 

 

 

average

 

 

 

 

 

 

 

 

 

Weighted

 

 

remaining

 

 

Aggregate

 

 

 

 

 

 

average

 

 

contractual

 

 

intrinsic

 

 

 

Number of

 

 

exercise

 

 

term

 

 

value (a)

 

 

 

options

 

 

price

 

 

(in years)

 

 

(in thousands)

 

Outstanding at December 31, 2024

 

 

324,983

 

 

$

11.88

 

 

 

7.0

 

 

$

 

Granted

 

 

 

 

 

 

 

 

 

 

 

 

Exercised

 

 

 

 

 

 

 

 

 

 

 

 

Cancelled/Forfeited

 

 

(90,634

)

 

 

13.29

 

 

 

 

 

 

 

Outstanding at December 31, 2025

 

 

234,349

 

 

 

11.34

 

 

 

6.1

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vested or expected to vest at December 31, 2025

 

 

234,349

 

 

$

11.34

 

 

 

6.1

 

 

$

 

Exercisable at December 31, 2025

 

 

203,277

 

 

$

13.07

 

 

 

7.0

 

 

$

 

 

 

(a) The aggregate intrinsic value is calculated as the difference between the exercise price of the options and the fair market value of the underlying common stock for the options that were in the money at December 31, 2025 and 2024. There were no options in the money at December 31, 2025 and December 31, 2024.

The weighted average grant date fair value per share of options granted during the years ended December 31, 2024 was approximately $3.15. There were no options granted during the year ended December 31, 2025. The total fair value of awards that vested during the years ended December 31, 2025 and 2024 was $0.6 million and $1.3 million, respectively.

As of December 31, 2025, there was approximately $0.02 million of unrecognized share-based compensation for unvested stock option grants which is expected to be recognized over a weighted average period of 0.94 years. The total unrecognized share-based compensation cost will be adjusted for actual forfeitures as they occur.

Restricted Common Stock

During the years ended December 31, 2025 and 2024, 30,000 and 362,700 shares of restricted common stock were granted, respectively.

The following table shows restricted common stock activity:

 

 

 

Restricted stock awards

 

 

 

 

 

 

Weighted
average
grant date

 

 

 

Number of

 

 

fair value

 

 

 

shares

 

 

(per share)

 

Unvested at December 31, 2024

 

 

194,066

 

 

$

5.97

 

Granted

 

 

30,000

 

 

 

1.12

 

Vested

 

 

(125,513

)

 

 

5.22

 

Forfeited

 

 

(27,190

)

 

 

5.04

 

Unvested at December 31, 2025

 

 

71,363

 

 

$

5.60

 

 

The total fair value of shares that vested during the years ended December 31, 2025 and 2024 was $0.7 million and $0.3 million, respectively.

As of December 31, 2025, there was approximately $0.01 million of unrecognized share-based compensation related to restricted stock awards granted, which is expected to be recognized over a weighted average period of 0.6 years. The total unrecognized share-based compensation cost will be adjusted for actual forfeitures as they occur.

Employee Stock Purchase Plan

The ESPP is considered a compensatory plan with the related compensation expense recognized over the six-month offering periods. There was no compensation expense for the year ended December 31, 2025. The compensation expense for the year ended December 31, 2024 was $(0.02) million due to the reversal of the expense as a result of the corporate restructuring and subsequent cancellation of the ESPP purchase in the first quarter of 2024.

Equity Compensation

The Company has recorded total equity‑based compensation expense of approximately $0.1 million and $3.2 million, during the years ended December 31, 2025 and 2024, respectively. Equity compensation during the years ended December 31, 2025 and 2024 is derived from stock options, restricted stock awards, and the ESPP.

The following table summarizes equity‑based compensation expense within the Company’s consolidated statements of operations and comprehensive loss for the years ended December 31, 2025 and 2024 (in thousands):

 

 

 

Years Ended December 31,

 

 

 

2025

 

 

2024

 

Research and development

 

$

 

 

$

232

 

General and administrative

 

 

117

 

 

 

570

 

Restructuring charges: expense acceleration

 

 

 

 

 

2,367

 

 

 

$

117

 

 

$

3,169

 

 

The following table summarizes equity‑based compensation expense by type of award for the years ended December 31, 2025 and 2024 (in thousands):

 

 

 

Years Ended December 31,

 

 

 

 

 

2025

 

 

2024

 

 

 

Stock options

 

$

41

 

 

$

2,064

 

 

 

Restricted stock awards

 

 

76

 

 

 

1,127

 

 

 

ESPP

 

 

 

 

 

(22

)

 

 

 

 

$

117

 

 

$

3,169