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 vested after three years of continuous service from the grant date and had 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 allowed for the grant of up to 10,000 awards for the purpose of attracting, motivating and retaining employees (including officers), non-employee directors and non-employee consultants. On April 24, 2026, the Board approved an amendment to the 2023 Plan to increase the total shares of common stock reserved for issuance under the 2023 Plan to an aggregate of 8,000,000, which was approved by our stockholders on Jun 17, 2026. As of June 30, 2026, we had 7,997,252 awards available for grant from the 2023 Plan.

HEPION PHARMACEUTICALS, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

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:

Schedule of Stock Based Compensation Expense 

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

 Schedule of Stock Option Activity

As of June 30, 2026, there was no unrecognized compensation cost related to non-vested stock options outstanding, net of expected forfeitures.