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

9 Months Ended

Jun. 30, 2020

5. Stock-Based Compensation

As of June 30, 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 June 30, 2020, 692,039 common shares were available for future grants under the 2019 Plan. As of June 30, 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.

The Company recorded stock-based compensation expense in the following expense categories of its condensed consolidated statements of operations for the three and nine months ended June 30, 2020 and 2019:


	Three Months Ended June 30,				Nine Months Ended June 30,
	2020		2019		2020		2019

General and administrative	$	847,921	$	814,657	$	2,915,273	$	2,348,957
Research and development		362,794		4,911		1,139,078		18,085
Total	$	1,210,715	$	819,568	$	4,054,351	$	2,367,042

Stock Options

Below is a table summarizing the options issued and outstanding as of and for the nine months ended June 30, 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	148,500		6.41
Forfeited	(10,000)		7.23
Outstanding at June 30, 2020	6,514,466	$	2.78	8.7	$	39,565,558
Exercisable as of June 30, 2020	4,331,730		1.43	8.5		32,306,881

As of June 30, 2020, unrecognized compensation costs associated with the stock options of $3.7 million will be recognized over an estimated weighted-average amortization period of 1.1 years.

The weighted average grant date fair value of options granted during the nine months June 30, 2020 was $4.67.

Key assumptions used to estimate the fair value of the stock options granted during the nine months ended June 30, 2020 included:


		Nine Months ended
		June 30, 2020
Expected term of options (years)		6.1 - 7.0
Expected common stock price volatility		78% - 84.3%
Risk-free interest rate		0.3% - 1.8%
Expected dividend yield		—

Restricted Stock

A summary of the changes in the unvested restricted stock during the nine months ended June 30, 2020 is as follows:


			Weighted
			Average
			Grant Date
	Unvested Restricted		Fair Value
	Stock		Price
Unvested as of September 30, 2019		6,875	$	6.24
Granted		4,823		6.36
Vested		(10,448)		6.28
Unvested as of June 30, 2020		1,250	$	6.24
Total unrecognized expense remaining	$	1,035
Weighted-average years expected to be recognized over		0.1