Quarterly report pursuant to Section 13 or 15(d)

Stock Based Compensation

v3.22.2
Stock Based Compensation
6 Months Ended
Jun. 30, 2022
Stock Based Compensation  
Stock-based Compensation

10. Stock Based Compensation

The Company may grant qualified and non-qualified stock options, common stock and other stock-based awards under various plans to directors, officers, employees and other individuals. Stock options are granted at exercise prices of not less than the fair market value of the Company’s common stock on the date of grant. Additionally, the Company has an ESPP that allows employees to purchase Company shares at a purchase price equal to 85% of the lower of the fair market value of the Company’s common stock on the first trading day of the offering period or on the last day of the offering period.

Stock Options

Stock options generally vest monthly over three years for employees and one year for directors. Stock options held by employees who qualify for retirement age (defined as employees that are a minimum of 55 years of age and the sum of their age plus years of full-time employment with the Company exceeds 70 years) vest on the earlier of scheduled vest date or the date of retirement.

The fair value of the stock options granted during the three and six months ended June 30, 2022 and 2021, was estimated based on the following weighted average assumptions:

Three Months Ended June 30, 

 

Six Months Ended June 30, 

 

    

2022

    

2021

 

    

2022

    

2021

 

Dividend yield

 

0

%  

0

%

 

0

%  

0

%

Expected volatility

 

69

%  

76

%

 

70

%  

94

%

Risk-free interest rate

 

2.90

%  

1.06

%

 

2.17

%  

0.77

%

Expected term

 

5.61 years

6.00 years

 

5.65 years

5.68 years

Stock option activity for the six months ended June 30, 2022, was as follows:

Weighted

    

Weighted

Average

Average

Aggregate

Exercise

Contractual 

Intrinsic

Number of

Price

Term

Value

shares

Per Share

(in years)

(in thousands)

Outstanding at January 1, 2022

1,911,177

$

20.64

 

6.33

$

15,103

Granted

 

222,972

 

19.83

 

  

 

  

Exercised

 

(101,811)

 

8.07

 

  

 

  

Forfeited, expired or cancelled

(7,447)

 

31.04

 

  

 

  

Outstanding at June 30, 2022

2,024,891

$

21.15

 

6.31

$

16,048

Exercisable at June 30, 2022

1,571,458

$

19.94

 

5.47

$

15,414

The aggregate intrinsic value of stock options exercised during the six months ended June 30, 2022 and 2021 was $2.1 million and $1.5 million, respectively.

The weighted-average grant-date fair value per share of the options granted during the six months ended June 30, 2022 and 2021 was $12.21 and $27.89, respectively.

As of June 30, 2022, $5.0 million of total unrecognized compensation expense related to stock options is expected to be recognized over a weighted average period of 2.11 years.

Stock-based Compensation Expense

The following table shows total stock-based compensation expense for stock options and ESPP in the condensed consolidated statements of operations and comprehensive loss (in thousands):

Three Months Ended June 30, 

Six Months Ended June 30, 

    

2022

    

2021

    

2022

    

2021

General and administrative

 

837

 

768

 

1,815

 

3,666

Total stock-based compensation expense

$

837

$

768

$

1,815

$

3,666

In April 2022, the Company entered into a letter agreement with Thomas Burns that amends and supplements his amended and restated employment agreement. Pursuant to the letter agreement, in the event Mr. Burns remains employed by the Company for a twelve-month period following the first day of employment of the Company’s new Chief Executive Officer, he will be deemed “retirement eligible” for purposes of his equity awards under the terms of his equity award agreements. Conditioned on his execution of a release in favor of the Company, Mr. Burns will also receive this benefit upon any involuntary termination for reasons other than cause.