Annual report pursuant to Section 13 and 15(d)

Stock-Based Compensation

v3.22.4
Stock-Based Compensation
12 Months Ended
Sep. 30, 2022
Stock-Based Compensation  
Stock-Based Compensation

13. Stock-Based Compensation

The Company has a 2016 Consolidated Stock Incentive Plan (the “2016 Plan”) and a 2019 Stock Incentive Plan (the “2019 Plan”), which provide for the issuance of incentive and non-incentive stock options, restricted and unrestricted stock awards, stock unit awards and stock appreciation rights. Options and restricted stock units granted generally vest over a period of one to four years and have a maximum term of ten years from the date of grant. Upon completion of the Ohr Acquisition, the Company assumed the awards outstanding under the NeuBase Therapeutics, Inc. 2018 Equity Incentive Plan.

As of September 30, 2022, an aggregate of 6,018,136 shares of common stock were authorized under 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 terms of the 2019 Plan. As of September 30, 2022, 697,893 common shares were available for future grants under the 2019 Plan. As of September 30, 2022, 291,667 shares of common stock were authorized under 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 consolidated statements of

operations for the years ended September 30, 2022 and 2021:

    

Year Ended September 30, 

2022

    

2021

General and administrative

$

1,817,797

$

2,369,287

Research and development

 

1,079,892

 

1,327,097

Total

$

2,897,689

$

3,696,384

Stock Options

Below is a table summarizing the options issued and outstanding as of and for the years ended September 30, 2022 and 2021:

Weighted-

Weighted-

Average

Total

    

Average

Remaining

Aggregate

Exercise

Contractual

Intrinsic

    

Stock Options

    

Price

    

Life (in years)

    

Value

Outstanding at September 30, 2020

6,190,790

$

2.76

Granted

1,758,599

5.45

Exercised

(47,052)

2.39

Forfeited

(505,183)

6.80

Outstanding at September 30, 2021

7,397,154

3.13

Granted

1,768,365

2.14

Exercised

(792,250)

0.00

Forfeited

(743,988)

4.74

Outstanding at September 30, 2022

7,629,281

3.08

6.8

$

992,754

Exercisable as of September 30, 2022

5,017,592

$

2.90

5.7

$

992,754

As of September 30, 2022, the unrecognized compensation costs of $2.5 million will be recognized over an estimated weighted-average amortization period of 1.4 years.

The intrinsic value of stock options exercised during the years ended September 30, 2022 and 2021 was $0.4 million and $0.2 million, respectively.

The weighted average grant date fair value of options granted during the year ended September 30, 2022 and 2021 was $1.40 and $3.84, respectively.

Key assumptions used to estimate the fair value of the stock options granted during the years ended September 30, 2022 and 2021 included:

Year Ended September 30, 

2022

    

2021

Expected term of options (years)

5.1 - 6.1

6.1

Expected common stock price volatility

73.8% - 78.5%

82.7% - 83.7%

Risk-free interest rate

1.1% - 3.4%

0.6% - 1.3%

Expected dividend yield

During the fiscal year ended September 30, 2021, the Company granted a stock option to purchase 225,000 shares to a consultant, which was cancelled and reissued in June 2021, in recognition of future service to the Company as an employee. The exercisability and vesting of the stock options are subject to the consultant’s effective date of employment with the Company, which had not yet occurred as of September 30, 2022, and as a result, the grant date of such option has not occurred under GAAP. Therefore, the number and fair value of the shares subject to this option are not reflected in the table summarizing the options issued and outstanding as of and for the year ended September 30, 2022 and did not have impact on unrecognized compensation costs or the estimated weighted-average amortization period above as of September 30, 2022.

Restricted Stock

A summary of the changes in the outstanding restricted stock during the years ended September 30, 2022 and 2021 is as follows:

    

    

Weighted-Average

 

Grant Date

Unvested Restricted

Fair Value

Stock

Price

Unvested as of September 30, 2020

 

$

Granted

 

11,722

 

6.37

Vested

 

(11,722)

 

6.37

Unvested as of September 30, 2021

 

Granted

4,441

3.94

Vested

(4,441)

3.94

Unvested as of September 30, 2022

Total unrecognized expense remaining

 

$

Weighted-average years expected to be recognized over

 

The fair value of restricted stock that vested during the years ended September 30, 2022 and 2021 was $0.02 million and $0.1 million, respectively.

Restricted Stock Units

Below is a table summarizing the restricted stock units granted and outstanding as of and for the year ended September 30, 2022:

Weighted-Average 

 Grant Date 

Restricted Stock 

Fair Value 

    

Units

    

Price

Unvested as of September 30, 2021

 

10,000

$

5.09

Forfeited

 

(10,000)

 

5.09

Unvested as of September 30, 2022

 

 

Total unrecognized expense remaining

$

 

  

Weighted-average years expected to be recognized over