NeuBase Therapeutics, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

Stock-Based Compensation

6 Months Ended

Mar. 31, 2020

5. Stock-Based Compensation

As of March 31, 2020, an aggregate of 3,783,114 shares of common stock were authorized under the Company’s 2019 Stock Incentive Plan (the “2019 Plan”), subject to an “evergreen” provision that will automatically increase the maximum number of shares of common stock that may be issued under the term of the 2019 Plan. As of March 31, 2020, 701,610 common shares were available for future grants under the 2019 Plan. As of March 31, 2020, 291,667 shares of common stock were authorized under the Company’s 2016 Consolidated Stock Incentive Plan (the “2016 Plan”) and 147,041 common shares were available for future grants under the 2016 Plan.

Stock Options

Below is a table summarizing the options issued and outstanding as of and for the six months ended March 31, 2020:


				Weighted
		Weighted		Average	Total
		Average		Remaining	Aggregate
		Exercise		Contractual Life	Intrinsic
	Stock Options	Price		(in years)	Value
Outstanding as of September 30, 2019	6,375,966	$	2.70
Granted	136,000		6.20
Forfeited	(5,000)		7.56
Outstanding at March 31, 2020	6,506,966	$	2.77	8.9	$	28,977,799
Exercisable as of March 31, 2020	4,231,799	$	1.34	8.7	$	25,120,498

As of March 31, 2020, unrecognized compensation costs associated with the stock options of $4.9 million will be recognized over an estimated weighted-average amortization period of 1.3 years.

The weighted average grant date fair value of options granted during the six months March 31, 2020 was $4.78.

Key assumptions used to estimate the fair value of the stock options granted during the six months ended March 31, 2020 included:


		Six Months ended
		March 31, 2020
Expected term of options (years)		7.0
Expected common stock price volatility		78% - 83.5%
Risk-free interest rate		0.9% - 1.8%
Expected dividend yield		-

Restricted Stock

A summary of the changes in the unvested restricted stock during the six months ended March 31, 2020 is as follows:


			Weighted
				Average
	Unvested Restricted		Grant Date
	Stock		Fair Value
Unvested as of September 30, 2019		6,875	$	6.24
Granted		2,752		6.36
Vested		(6,502)		6.29
Unvested as of March 31, 2020		3,125	$	6.24
Total unrecognized expense remaining	$	5,830
Weighted-average years expected to be recognized over		0.2

The Company recorded stock-based compensation expense in the following expense categories of its condensed consolidated statements of operations for the three and six months ended March 31,2020 and 2019:


	Three Months Ended March 31,				Six Months Ended March 31,
	2020		2019		2020		2019
			Restated (Note 2)				Restated (Note 2)
General and administrative	$	954,241	$	1,245,414	$	2,067,352	$	1,534,300
Research and development		385,169		8,757		776,284		13,174
Total	$	1,339,410	$	1,254,171	$	2,843,636	$	1,547,474