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STOCK-BASED COMPENSATION | 6 Months Ended
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Jun. 30, 2024
Share-Based Payment Arrangement [Abstract] |
STOCK-BASED COMPENSATION | 11. STOCK-BASED COMPENSATION The following table summarizes the Company’s stock awards granted for each of the periods indicated:
|  | For the Three Months Ended June 30, |  |  | For the Six Months Ended June 30, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
|  | Grants |  |  | Weighted Average Grant Date Fair Value |  |  | Grants |  |  | Weighted Average Grant Date Fair Value |  |  | Grants |  |  | Weighted Average Grant Date Fair Value |  |  | Grants |  |  | Weighted Average Grant Date Fair Value |
Stock options |  |  | 5,100 |  |  | $ | 72.37 |  |  |  | 54,575 |  |  | $ | 66.82 |  |  |  | 321,478 |  |  | $ | 67.63 |  |  |  | 1,084,924 |  |  | $ | 72.50 |
Restricted stock units |  |  | 54,905 |  | (1) | $ | 138.91 |  |  |  | 33,752 |  |  | $ | 121.27 |  |  |  | 1,216,890 |  | (1) | $ | 129.05 |  |  |  | 1,109,663 |  | (2) | $ | 153.89 |
(1) Included in restricted stock units (“RSUs”) for the three and six months ended June 30, 2024 are 8,860 and 97,460 shares with performance conditions (“March 2024 PSUs”), respectively, which are related to the achievement of certain financial performance goals and regulatory approval of certain of the Company's product candidates. The expanded regulatory approval of ELEVIDYS in June 2024 resulted in the cliff-vesting of 44,300 of the 97,460 shares of the March 2024 PSUs during the three and six months ended June 30, 2024. As of June 30, 2024, none of the performance conditions for the remaining 53,160 shares were probable of being achieved. Stock options and the remaining RSUs granted during the three and six months ended June 30, 2024 have only service-based criteria and vest over four years. (2) Included in the RSUs for the six months ended June 30, 2023 are 502,225 shares with performance conditions (the “March 2023 PSUs”), which are related to regulatory approval of ELEVIDYS and achievement of a certain financial performance target, both of which were achieved in 2023. Vesting of the March 2023 PSUs is contingent on the fulfillment of remaining service conditions. During the year ended December 31, 2022, the Company granted 38,500 RSUs with performance conditions (the “March 2022 PSUs”), which are related to regulatory approval of certain of the Company's product candidates. As a result of the expanded regulatory approval of ELEVIDYS in June 2024, a portion of the March 2022 PSUs became eligible for vesting. Vesting of these PSUs is contingent on the fulfillment of remaining service conditions. As of June 30, 2024, none of the remaining performance conditions were probable of being achieved. Stock-based Compensation Expense For the three months ended June 30, 2024 and 2023, total stock-based compensation expense was $50.5 million and $47.4 million, respectively. For the six months ended June 30, 2024 and 2023, total stock-based compensation expense was $91.2 million and $88.6 million, respectively. The following table summarizes stock-based compensation expense by grant type and by function included within the unaudited condensed consolidated statements of comprehensive income (loss):
|  | For the Three Months Ended June 30, |  |  | For the Six Months Ended June 30, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
| (in thousands) |
Stock options |  | $ | 15,515 |  |  | $ | 21,135 |  |  | $ | 31,796 |  |  | $ | 44,965 |
Restricted stock units |  |  | 37,808 |  |  |  | 25,037 |  |  |  | 65,335 |  |  |  | 41,177 |
Employee stock purchase plan |  |  | 2,331 |  |  |  | 1,205 |  |  |  | 3,728 |  |  |  | 2,485 |
Subtotal |  | $ | 55,654 |  |  | $ | 47,377 |  |  | $ | 100,859 |  |  | $ | 88,627 |
Capitalized stock-based compensation costs* |  |  | (5,172 | ) |  |  | — |  |  |  | (9,685 | ) |  |  | — |
Total stock-based compensation expense included in expenses |  | $ | 50,482 |  |  | $ | 47,377 |  |  | $ | 91,174 |  |  | $ | 88,627 |
Research and development |  |  | 19,806 |  |  |  | 21,577 |  |  |  | 36,079 |  |  |  | 37,990 |
Selling, general and administrative |  |  | 30,676 |  |  |  | 25,800 |  |  |  | 55,095 |  |  |  | 50,637 |
Total stock-based compensation expense included in expenses |  | $ | 50,482 |  |  | $ | 47,377 |  |  | $ | 91,174 |  |  | $ | 88,627 |
*Prior to the six months ended June 30, 2024, capitalized stock-based compensation costs were not material.

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