9. Stock-Based Compensation

Equity Incentive Plans

2020 Stock Incentive Plan

Under the 2020 Stock Incentive Plan (as amended, the “2020 Plan”), the Company was authorized to issue shares of common stock to the Company’s employees, officers, directors, consultants and advisors in the form of options, restricted stock awards or other stock-based awards.

2021 Stock Incentive Plan

In September 2021, the Company’s board of directors and stockholders adopted the 2021 Stock Incentive Plan (the “2021 Plan”), which became effective immediately prior to the Company’s initial public offering of common stock (“IPO”) in October 2021. Upon effectiveness of the 2021 Plan, the Company ceased granting awards under the 2020 Plan. The 2021 Plan provides for the grant of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock units and other stock-based awards. The Company initially reserved 469,929 shares of common stock under the 2021 Plan. The 2021 Plan initially provided that the number of shares reserved and available for issuance under the 2021 Plan would be cumulatively increased on January 1 of each calendar year by 5% of the number of shares of common stock outstanding on such date or such lesser amount determined by the Company’s board of directors. In June 2026, the Company's stockholders approved an amendment to the 2021 Plan (as amended, the “Amended and Restated 2021 Plan”), which had previously been adopted by the Company's board of directors subject to stockholder approval, to provide that, beginning on January 1, 2027 and continuing for each calendar year through January 1, 2031, the number of shares reserved and available for issuance under the Amended and Restated 2021 Plan will be cumulatively increased on January 1 of each calendar year in an amount equal to 5% of the sum of (i) the total number of shares of common stock outstanding and (ii) the total number of shares of common stock subject to prefunded warrants issued by the Company and outstanding on such date, or such lesser amount determined by the Company's board of directors. As of June 30, 2026, there were 354,198 shares of common stock available for future issuance under the Amended and Restated 2021 Plan.

2025 Stock Incentive Plan

In November 2025, the Company’s stockholders adopted the 2025 Stock Incentive Plan (the “2025 Plan”), which had previously been adopted by the Company’s board of directors subject to stockholder approval. The 2025 Plan provides for the grant of stock options to employees for 2,285,592 shares of common stock, divided into four equal tranches of 571,398 total shares per tranche, with the vesting of each tranche of stock options tied to a tranche of the June 2025 warrants, which are further described in Note 8.

The stock options granted under the 2025 Plan vest as follows:

As of June 30, 2026, there were 324,098 shares of common stock available for future issuance under the 2025 Plan.

As of June 30, 2026, the Tranche 2 and Tranche 4 Stock Options contain outstanding performance conditions for which the likelihood of satisfying each of the performance conditions is considered probable.

2022 Inducement Plan

In 2022, the Company’s board of directors adopted the 2022 Inducement Stock Incentive Plan pursuant to Nasdaq Rule 5635(c)(4) (the “2022 Inducement Plan”). In accordance with Nasdaq Rule 5635(c)(4), stock-based incentive awards under the 2022 Inducement Plan may only be made to a newly hired employee who has not previously been a member of the Company’s board of directors, or an employee who is being rehired following a bona fide period of non-employment by the Company as a material inducement to the employee’s entering into employment with the Company. The Company initially reserved 19,642 shares of the Company’s common stock for issuance under the 2022 Inducement Plan. The Company's board of directors approved amendments to the 2022 Inducement Plan to increase the number of shares of common stock reserved for issuance under the 2022 Inducement Plan by 35,714 shares in each of November 2024 and March 2025, an additional 32,485 shares in January 2026, and an additional 250,000 shares in June 2026. As of June 30, 2026, there were 318,692 shares of common stock available for future issuance under the 2022 Inducement Plan.

2021 Employee Stock Purchase Plan

In 2021, the Company’s board of directors and stockholders adopted the 2021 Employee Stock Purchase Plan (the “2021 ESPP”), which became effective immediately prior to the IPO in October 2021. The Company initially reserved 20,859 shares of common stock for issuance under the 2021 ESPP. The 2021 ESPP provides that the number of shares of common stock reserved for issuance under the 2021 ESPP will be cumulatively increased on January 1 of each calendar year by 1% of the number of shares of the Company’s common stock outstanding on such date or such lesser amount determined by the Company’s board of directors (up to a maximum increase of 41,718 shares of common stock per year). On January 1, 2026, the number of shares reserved for issuance under the 2021 ESPP was increased by 41,718 shares. During the three and six months ended June 30, 2026 and 2025, the Company issued 4,973 and 3,240 shares of common stock, respectively, under the 2021 ESPP. As of June 30, 2026, there were 136,294 shares available for future issuance under the 2021 ESPP.

Stock-Based Compensation Expense

During the three and six months ended June 30, 2026 and 2025, the Company recorded compensation expense related to stock options, restricted stock units and restricted common stock for employees and non-employees and share purchases under the 2021 ESPP for employees, which was allocated as follows in the condensed consolidated statements of operations and comprehensive loss:

Stock Options

A summary of stock option activity under the Company’s 2020 Plan, Amended and Restated 2021 Plan, 2025 Plan and 2022 Inducement Plan is as follows:

As of June 30, 2026, the Company had unrecognized stock-based compensation expense of $12.4 million related to stock options issued to employees and directors, including $7.1 million of unrecognized stock-based compensation expense related to awards with performance conditions for which the likelihood of satisfying such performance conditions are considered probable, which is expected to be recognized over a weighted-average period of 2.7 years.

Using the Black-Scholes option pricing model, the weighted average fair value of options granted to employees and directors during the six months ended June 30, 2026 and 2025 was $6.50 per share and $10.08 per share, respectively. The following assumptions were used in determining the fair value of options granted during the six months ended June 30, 2026 and 2025:

Stock Option Repricing

In October 2025, the Company's board of directors approved a stock option repricing (the “Option Repricing”), which was effective upon stockholder approval on November 21, 2025 (the “Repricing Date”). The Option Repricing applied to all outstanding options to purchase shares of common stock of the Company granted to employees under the Company’s 2020 Plan, Amended and Restated 2021 Plan and 2022 Inducement Plan with an exercise price greater than $21.00 for members of the Company's executive team and $14.00 for all other employees (the “underwater options”) with grant dates prior to January 1, 2025 (the “Eligible Options”). The total number of shares of common stock underlying all Eligible Options was 354,200. Non-employee members of the Company’s board of directors were not eligible to participate in the Option Repricing. If such Eligible Options are exercised prior to the one-year anniversary of the Repricing Date (the "Retention Period"), the original exercise price must be paid.

The repricing of the Eligible Options was accounted for as a modification under ASC 718. Accordingly, the Company calculated incremental compensation cost on the modification date in an amount equal to the difference between the fair value of the awards before and after modification. The total amount of the incremental compensation expense to be recognized was determined to be $0.6 million, which is being recognized over the Retention Period.

Restricted Stock Units

In January 2024, the Company awarded 34,389 restricted stock units to certain employees of the Company. The restricted stock units vest in four equal annual installments beginning on the first anniversary of the grant date. The restricted stock units are generally forfeited if the individual’s service relationship with the Company or any subsidiary terminates prior to vesting.

A summary of the Company’s restricted stock unit activity and related information is as follows:

For each of the six months ended June 30, 2026 and 2025, the Company recognized less than $0.1 million of stock-based compensation expense related to these awards. As of June 30, 2026, the Company had unrecognized stock-based compensation expense of $0.1 million related to these restricted stock units, which is expected to be recognized over 1.5 years.