Quarterly report pursuant to Section 13 or 15(d)

Share-Based Compensation

Share-Based Compensation
3 Months Ended
Dec. 31, 2020
Share-based Payment Arrangement [Abstract]  
Share-Based Compensation

8. Share-Based Compensation


In April 2020, the Company adopted the 2020 Omnibus Equity Incentive Plan (the “Plan”). The total number of shares authorized under the Plan as of December 31, 2020 was 653,846, all of which have been granted as of December 31, 2020. The Plan increases the amount of shares issuable under the Plan by four percent of the outstanding shares of common stock at each January 1, each year. The Plan permits the granting of share-based awards, including stock options, restricted stock units and awards, stock appreciation rights and other types of awards as deemed appropriate, in each case, in accordance with the terms of the Plan. The terms of the awards are determined by the Company’s Board of Directors.


Restricted Stock Units


In July of 2020, 653,846 restricted stock units (“RSUs”) were granted, 50% of which vest on April 2, 2021 and the remaining 50% vest on April 2, 2022. Any unvested RSUs will be forfeited upon termination of services. The fair value of an RSU is equal to the fair market value of the Company’s common stock on the date of grant. RSU expense is amortized straight-line over the vesting period.


The Company recorded share-based compensation expense associated with the RSUs in its accompanying statements of operations.


    Three Months Ended  
    December 31, 2020  
Research and development   $ 105,694  
General and administrative     264,361  
    $ 370,055  


The following table summarizes RSU activity under the Plan:


    RSU     Weighted
Average Grant
Date Fair Value
Unvested balance at September 30, 2020     653,845     $ 3.63  
Unvested balance at December 31, 2020     653,845     $ 3.63  


As of December 31, 2020, total unrecognized compensation expense relating to unvested RSUs granted was $1.6 million, which is expected to be recognized over a period of 1.25 years.