v3.26.1
Common Stock (Tables)
 6 Months Ended
Jun. 30, 2026
Equity [Abstract]  
Summary of Stock Options Activity

Stock option transactions and the number of stock options outstanding are summarized below:

 

 

 

Number of

 

 

Weighted

 

 

 

Optioned

 

 

Average

 

 

 

Common

 

 

Exercise

 

 

 

Shares

 

 

Price

 

Balance, December 31, 2025

 

 

2,730,211

 

 

$

7.08

 

Granted

 

 

7,028,579

 

 

 

4.49

 

Expired

 

 

(20

)

 

 

2,200.00

 

Exercised

 

 

(31,248

)

 

 

3.65

 

Cancelled/Forfeited

 

 

(428,075

)

 

 

4.38

 

Balance, June 30, 2026

 

 

9,299,447

 

 

$

5.26

 
Summary of Allocated Common Stock, Pre-funded Common Stock Warrants and Common Stock Warrants

 

 

 

 

 

Pre-funded

 

 

 

 

 

 

Common

 

 

Common Stock

 

 

Common Stock

 

 

 

Stock

 

 

Warrants

 

 

Warrants

 

Unit Issued

 

 

49,418,069

 

 

 

100,500

 

 

 

49,518,569

 

Gross Proceeds (in thousands)

 

$

45,293

 

 

$

511

 

$

134,196

 

Underwriting discount and offering expense (in thousands)

 

$

2,958

 

 

$

33

 

 

$

8,766

 
Summary of Fair Value of Each Stock Award for Employees and Directors

The fair value of each stock award for employees and directors is estimated on the grant date and for consultants at each reporting period, using the Black-Scholes option-pricing model based on the weighted-average assumptions noted in the following table:

 

 

 

Six Months Ended

 

 

 

June 30,

 

 

 

2026

 

 

2025

 

Risk-free interest rates

 

 

3.91

%

 

 

4.31

%

Expected dividend yield

 

 

0

%

 

 

0

%

Expected life

 

6.01 years

 

 

5.63 years

 

Expected volatility

 

 

76.88

%

 

 

78.31

%

Forfeiture rate

 

 

0.00

%

 

 

0.00

%

The inputs and significant assumptions used in the Monte Carlo simulation were as follows:

 

Inputs and Assumptions

 

 

 

Valuation date

 

April 18, 2026

 

Underlying share price

 

$

5.10

 

Risk free interest rate

 

 

3.82

%

Contractual term

 

April 18, 2036

 

Volatility estimate

 

 

88.32

%

Reference price

 

$

3.39

 
Summary of Stock-Based Compensation Expense

The results for the periods set forth below included stock-based compensation expense for stock options, restricted stock units and employee share purchase plan compensation expenses in the following expense categories of the consolidated statements of loss (in thousands):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Research and development

 

$

460

 

 

$

779

 

 

$

(10

)

 

$

1,333

 

General and administrative

 

 

6,495

 

 

 

2,109

 

 

 

6,280

 

 

 

3,787

 

Total stock-based compensation

 

$

6,955

 

 

$

2,888

 

 

$

6,270

 

 

$

5,120

 
Summary of Restricted Stock Unit Award Activity

The following table summarizes our restricted stock unit award activity during the six months ended June 30, 2026:

 

 

 

 

 

Weighted

 

 

 

Number

 

 

Average

 

 

 

of

 

 

Grant Date

 

 

 

Shares

 

 

Fair Value

 

Balance, December 31, 2025

 

 

1,084,330

 

 

$

3.76

 

Granted

 

 

13,507,235

 

 

 

4.25

 

Cancelled/Forfeited

 

 

(112,500

)

 

 

3.63

 

Balance, June 30, 2026

 

 

14,479,065

 

 

$

4.08

 
Summary of Outstanding Warrants

The following is a summary of outstanding warrants to purchase common stock as of June 30, 2026:

 

 

 

Total

 

 

 

 

 

 

 

 

Outstanding

 

 

Exercise

 

 

 

 

 

and

 

 

price per

 

 

 

 

 

Exercisable

 

 

Share

 

 

Expiration Date

Pre-Funded warrants issued in August 2020 financing

 

 

142,857

 

 

$

0.001

 

 

*

Warrants issued in November 2022 financing

 

 

4,093,141

 

 

$

4.500

 

 

November 2029

Warrants issued in June 2025 financing

 

 

16,298,166

 

 

$

3.000

 

 

June 2030

Warrants issued in April 2026 financing

 

 

49,518,569

 

 

$

3.510

 

 

**

Pre-Funded warrants issued in April 2026 financing

 

 

100,500

 

 

$

0.001

 

 

*

 

*The pre-funded warrants do not have an expiration date.

**These warrants have an exercise price of $3.51 per common warrant share and are exercisable at any time after the date of issuance, subject to certain ownership limitations, and will expire on the later of the twentieth business day following (i) the date on which we publicly announce that the FDA has approved cytisinicline for smoking cessation in adults, or FDA Approval, and (ii) the date on which we notify the common warrant holders of the FDA Approval, provided that if a common warrant is not fully exercisable because we have insufficient authorized and unreserved shares of our common stock at the time of the public announcement of the FDA Approval, the common warrant will be exercisable for two years following the date on which we obtain stockholder approval for an amendment to our certificate of incorporation to increase the number of authorized shares of our common stock.