9. Stock-Based Compensation

Equity Incentive Plans

In October 2022, the Board adopted, and in November 2022 its stockholders approved, the 2022 Plan, which became effective immediately prior to and contingent upon the execution of the underwriting agreement related to the Company’s IPO. The 2022 Plan allows the Company to make equity-based and cash-based incentive awards to its officers, employees, directors, and consultants and provides for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock awards, RSUs, and other stock-based awards. In addition, the number of shares reserved and available for issuance under the 2022 Plan shall automatically increase beginning on January 1, 2023 and each January 1 thereafter, by five percent of the aggregate number of shares of common stock of all classes issued and outstanding on the immediately preceding December 31 or such lesser number of shares of common stock as determined by the compensation committee. In June 2026, the Board adopted an amendment to the 2022 Plan to reserve an additional 3,000,000 shares of authorized and unissued common stock.

In October 2022, the Board adopted, and in November 2022 its stockholders approved, the 2022 ESPP, which became effective immediately prior to and contingent upon the execution of the underwriting agreement related to the Company’s IPO. The number of shares of common stock that may be issued under the 2022 ESPP shall cumulatively increase beginning on January 1, 2023 and each January 1 thereafter through January 1, 2032, by one percent of the outstanding number of shares of common stock on the immediately preceding December 31 or such lesser number of shares as determined by the compensation committee. No shares of the Company’s common stock have been issued.

In June 2023, the Board adopted the Inducement Plan to facilitate the granting of equity awards as an inducement material to new employees joining the Company. In April 2025, the Board amended the Inducement Plan to reserve an additional 500,000 authorized and unissued shares of common stock. The only persons eligible to receive awards under the Inducement Plan are individuals who are new employees and satisfy the standards for inducement grants under Nasdaq Listing Rule 5635(c)(4) or 5635(c)(3), as applicable. The terms of the Inducement Plan are identical to the terms of the 2022 Plan, except that no incentive stock options shall be awarded under the Inducement Plan.

Stock Options

The Company has granted stock options with service-based vesting conditions. Stock options typically vest over four years and have a maximum term of ten years. The Company typically grants stock options to employees and non-employees at exercise prices deemed by the Board to be equal to the fair value of the common stock at the time of grant.

The aggregate intrinsic value of options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock for those stock options that had exercise prices lower than the fair value of the common stock as of the end of the reporting period. The aggregate intrinsic value of options exercised during each of the six months ended June 30, 2026 and 2025 was immaterial.

The weighted-average grant date fair value of the Company’s stock options granted during the three months ended June 30, 2026 and 2025 was $1.33 and $1.06 per option, respectively. The weighted-average grant date fair value of the Company’s stock options granted during the six months ended June 30, 2026 and 2025 was $1.24 and $3.81 per option, respectively. As of June 30, 2026, there was $10.3 million of unrecognized stock-based compensation expense related to stock option grants. The Company expects to recognize this amount over a weighted-average period of 2.9 years.

RSUs

The Company has granted RSUs with service-based vesting conditions. Unvested shares of restricted common stock may not be sold or transferred by the holder and they do not constitute issued and outstanding shares. These restrictions lapse according to the time-based vesting of each award.

The following table summarizes the Company’s RSU activity during the six months ended June 30, 2026:

RSUs typically vest over three to four years. If and when an RSU vests, the Company will issue one share of common stock for each whole RSU that has vested, subject to satisfaction of the employee’s tax withholding obligations. Upon vesting and settlement of RSUs, the Company may withhold the portion of those shares with a fair market value equal to the amount of the minimum statutory withholding taxes due. The withheld shares are accounted for as repurchases of common stock.

The weighted-average grant date fair value of the Company’s RSUs granted during the three and six months ended June 30, 2026 was $1.65. No RSUs were granted during the three and six months ended June 30, 2025. As of June 30, 2026, there was $2.1 million of unrecognized stock-based compensation expense related to RSUs. The Company expects to recognize this amount over a weighted-average period of 2.6 years.

The total fair value of RSUs vested during the three months ended June 30, 2026 and 2025 was $0.7 million and $2.2 million, respectively. The total fair value of RSUs vested during the six months ended June 30, 2026 and 2025 was $1.4 million and $4.5 million, respectively.

Stock-Based Compensation Expense