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Stock based Compensation | 12 Months Ended
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Dec. 31, 2023
Share-Based Payment Arrangement [Abstract] |
Stock based Compensation | Stock-based Compensation 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. The Plan provides for certain benefits to qualifying Plan participants who separate from service with the Company due to death, disability or "retirement" (as such term is defined under the Plan) ("Qualified Participants"). Options granted under the Plan to a Qualified Participant shall continue to vest until the 2nd anniversary of the Qualified Participant’s separation and all vested options held by such Qualified Participant shall remain exercisable until the earlier of the 4th anniversary of the Qualified Participant’s separation or the original expiration date of the option. Options that are not exercised during this exercise period shall be forfeited. Time-based restricted stock units and restricted stock granted to a Qualified Participant under the Plan that was scheduled to vest within the two year period following the Qualified Participant's separation shall accelerate and be delivered upon such separation. Any time-based restricted stock units or restricted stock that would have vested after such two year period will be forfeited upon the Qualified Participant's separation. Also, per the Amendment, any performance-based restricted stock units under the Plan ("PRSUs") received by the Qualified Participant, shall remain eligible to vest after the Qualified Participant’s separation based on the actual performance of the Company through the end of the performance period applicable to any such PRSUs. Stock Option Grants The Company uses the fair value method of measuring share-based compensation, using the fair value of each equity award granted. The Company chose the ‘‘straight-line’’ attribution method for allocating compensation costs and recognized the fair value of each stock option on a straight-line basis over the vesting period of the related awards. The Company uses the Black-Scholes option pricing model when estimating the grant date fair value for share-based awards. Use of a valuation model requires management to make certain assumptions with respect to selected model inputs. Expected volatility is based on the historical volatility of the Company's common stock over the look-back period corresponding to the expected life of the options. The average expected life is determined using the Company's actual historical data. The risk-free interest rate is based on U.S. Treasury, zero-coupon issues with a remaining term equal to the expected life assumed at the date of grant. Forfeitures are estimated based on a historical analysis of actual option forfeitures. The fair value of the stock options granted were estimated on the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions:
|  | Years Ended December 31,
|  | 2023 |  | 2022 |  | 2021
Expected stock price volatility |  | 59.2 | % |  | 62.1 | % |  | 65.4 | %
Risk free interest rate |  | 3.9 | % |  | 1.7 | % |  | 0.6 | %
Expected life of options (years) |  | 5.47 |  | 5.34 |  | 5.40
Expected annual dividend per share |  | $ | — |  |  | $ | — |  |  | $ | — |
The weighted average grant-date fair value per share of options granted during 2023, 2022, and 2021 were $6.75, $6.11, and $9.08, respectively. A summary of the Company's stock options for the year ended December 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, 2020 | 14,032 |  |  | $ | 9.54 |  |  |  |  |
Granted | 3,262 |  |  | $ | 16.53 |  |  |  |  |
Exercised | (1,483) |  |  | $ | 7.05 |  |  |  |  |
Forfeited | (844) |  |  | $ | 12.97 |  |  |  |  |
Expired | (236) |  |  | $ | 13.28 |  |  |  |  |
Options outstanding, December 31, 2021 | 14,731 |  |  | $ | 11.08 |  |  |  |  |
Granted | 5,733 |  |  | $ | 11.53 |  |  |  |  |
Exercised | (660) |  |  | $ | 6.58 |  |  |  |  |
Forfeited | (495) |  |  | $ | 12.57 |  |  |  |  |
Expired | (245) |  |  | $ | 12.84 |  |  |  |  |
Options outstanding, December 31, 2022 | 19,064 |  |  | $ | 11.31 |  |  |  |  |
Granted | 5,733 |  |  | $ | 11.99 |  |  |  |  |
Exercised | (1,361) |  |  | $ | 7.54 |  |  |  |  |
Forfeited | (356) |  |  | $ | 11.59 |  |  |  |  |
Expired | (78) |  |  | $ | 15.09 |  |  |  |  |
Options outstanding, December 31, 2023 | 23,002 |  |  | $ | 11.69 |  |  | 6.5 |  | $ | 70.8 |
Vested and unvested expected to vest, December 31, 2023 | 21,215 |  |  | $ | 11.64 |  |  | 6.3 |  | $ | 66.5 |
Exercisable at December 31, 2023 | 13,431 |  |  | $ | 11.26 |  |  | 5.0 |  | $ | 49.0 |
The aggregate intrinsic value of options exercised during the years ended December 31, 2023, 2022 and 2021 was $7.1 million, $2.5 million, and $8.5 million, respectively. Cash proceeds from stock options exercised during the years ended December 31, 2023, 2022, and 2021 were $10.3 million, $4.3 million, and $10.2 million, respectively. As of December 31, 2023, the total unrecognized compensation cost related to non-vested stock options granted was $35.0 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 year ended December 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, 2020 | 7,080 |  |  | $ | 11.35 |  |  |  |  |
Granted | 3,191 |  |  | $ | 16.94 |  |  |  |  |
Vested | (1,863) |  |  | $ | 15.77 |  |  |  |  |
Forfeited | (1,067) |  |  | $ | 12.82 |  |  |  |  |
Non-vested units as of December 31, 2021 | 7,341 |  |  | $ | 13.90 |  |  |  |  |
Granted | 5,048 |  |  | $ | 11.93 |  |  |  |  |
Vested | (2,251) |  |  | $ | 12.48 |  |  |  |  |
Forfeited | (421) |  |  | $ | 12.06 |  |  |  |  |
Non-vested units as of December 31, 2022 | 9,717 |  |  | $ | 13.07 |  |  |  |  |
Granted | 4,762 |  |  | $ | 13.02 |  |  |  |  |
Vested | (3,610) |  |  | $ | 12.21 |  |  |  |  |
Forfeited | (836) |  |  | $ | 11.63 |  |  |  |  |
Non-vested units as of December 31, 2023 | 10,033 |  |  | $ | 13.37 |  |  | 2.1 |  | $ | 142.4 |
As of December 31, 2023, there was $53.6 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:
|  | Years Ended December 31,
(in thousands) |  | 2023 |  | 2022 |  | 2021
Research and development expense |  | $ | 21,470 |  |  | $ | 25,089 |  |  | $ | 17,340 |
Selling, general, and administrative expense |  | 64,607 |  |  | 51,423 |  |  | 40,498 |
Total equity compensation expense |  | $ | 86,077 |  |  | $ | 76,512 |  |  | $ | 57,838 |

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