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Stock-Based Compensation | 3 Months Ended
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Mar. 31, 2023
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | Stock-Based Compensation The Company's Amended and Restated 2007 Equity Incentive Plan (the "Plan") provides for the granting of restricted stock units and options to purchase common stock in the Company to employees, directors, advisors, and consultants at a price to be determined by the Company's Board of Directors. The Plan is intended to encourage ownership of stock by employees and consultants of the Company and to provide additional incentives for them to promote the success of the Company's business. The Board of Directors, or its committee, is responsible for determining the individuals to be granted options, the number of options each individual will receive, the option price per share, and the exercise period of each option. Stock Option Grants The fair value of the stock options granted is estimated on the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions:
|  | Three Months Ended March 31, |  |
|  | 2023 |  | 2022 |  |  |  |
Expected stock price volatility |  | 59.3 | % |  | 62.3 | % |  |  |  |
Risk free interest rate |  | 3.9 | % |  | 1.5 | % |  |  |  |
Expected life of options (years) |  | 5.5 |  | 5.3 |  |  |  |
Expected annual dividend per share |  | $ | — |  |  | $ | — |  |  |  |  |
A summary of the Company's stock options for the three months ended March 31, 2023 were as follows:
|  | Number of Shares |  | Weighted Average Exercise Price |  | Weighted Average Remaining Years |  | Aggregate Intrinsic Value
|  | (in thousands) |  |  |  |  |  | (in millions)
Options outstanding, December 31, 2022 |  | 19,064 |  |  | $ | 11.31 |  |  |  |  |
Granted |  | 4,854 |  |  | $ | 11.94 |  |  |  |  |
Exercised |  | (384) |  |  | $ | 6.91 |  |  |  |  |
Forfeited |  | (81) |  |  | $ | 10.97 |  |  |  |  |
Expired |  | (16) |  |  | $ | 15.51 |  |  |  |  |
Options outstanding, March 31, 2023 |  | 23,437 |  |  | $ | 11.51 |  |  | 7.0 |  | $ | 22.8 |
Vested and unvested expected to vest, March 31, 2023 |  | 21,395 |  |  | $ | 11.45 |  |  | 6.9 |  | $ | 22.1 |
Exercisable at March 31, 2023 |  | 12,395 |  |  | $ | 10.94 |  |  | 5.3 |  | $ | 19.4 |
As of March 31, 2023, the total unrecognized compensation cost related to non-vested stock options granted was $47.1 million and is expected to be recognized over a weighted average period of three years. Restricted Stock Units and Performance-Based Restricted Stock Units (collectively "RSUs") RSUs awarded under the Plan are generally subject to graded vesting and are contingent on an employee's continued service. RSUs are generally subject to forfeiture if employment terminates prior to the release of vesting restrictions. The Company expenses the cost of the RSUs, which is determined to be the fair market value of the shares of common stock underlying the RSUs at the date of grant, ratably over the period during which the vesting restrictions lapse. A summary of non-vested RSU activity under the Plan for the three months ended March 31, 2023 is as follows:
|  | Number of Shares |  | Weighted Average Grant Date Fair Value |  | Weighted Average Remaining Years |  | Aggregate Intrinsic Value
|  | (in thousands) |  |  |  |  |  | (in millions)
Non-vested units as of December 31, 2022 |  | 9,717 |  |  | $ | 13.07 |  |  |  |  |
Granted |  | 2,762 |  |  | $ | 11.94 |  |  |  |  |
Vested |  | (2,532) |  |  | $ | 12.20 |  |  |  |  |
Forfeited |  | (517) |  |  | $ | 9.68 |  |  |  |  |
Non-vested units as of March 31, 2023 |  | 9,430 |  |  | $ | 13.16 |  |  | 2.4 |  | $ | 104.6 |
As of March 31, 2023, there was $63.8 million of total unrecognized compensation cost related to unvested RSUs with service-based vesting conditions. These costs are expected to be recognized over a weighted average period of two years. Compensation Expense Related to Equity Awards The following table summarizes information related to compensation expense recognized in the Company's Consolidated Statements of Operations related to the equity awards:
|  | Three Months Ended March 31,
(in thousands) |  | 2023 |  | 2022
Research and development expense |  | $ | 8,490 |  |  | $ | 9,365 |
Selling, general, and administrative expense |  | 26,404 |  |  | 21,286 |
Total equity compensation expense |  | $ | 34,894 |  |  | $ | 30,651 |

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