Stock-Based Compensation Expense (Tables)

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Employee Awards and Non-employee Director Award Plan Activity

During the nine months ended September 30, 2023, the Company granted the following awards (in shares):


	Three Months Ended March 31,			Three Months Ended June 30,			Three Months Ended September 30,			Nine Months Ended September 30,
	2023			2023			2023			2023
Employee awards:
RSUs		179,905	(1)		2,660,721	(2)		34,385	(5)		2,875,011
Market RSUs		—			1,445,000	(3)		—			1,445,000
Non-employee director RSUs		—			319,904	(4)		—			319,904
Total awards issued		179,905			4,425,625			34,385			4,639,915

_________________________

(1)

RSUs had a weighted average grant date fair value of $4.16 per share, of which 91,900 RSUs had a cliff vesting period of three years, 42,000 RSUs had a cliff vesting period of two years, and 46,005 RSUs had a vesting period of 25% annually over four years.

(2)

RSUs had a weighted average grant date fair value of $4.56 per share, of which 2,598,971 RSUs had a vesting period of 25% annually over four years, and 61,750 RSUs had a cliff vesting period of three years.

(3)

Market RSUs had a grant date fair value of $9.40 per share and will vest on July 15, 2026 provided the closing price of the Company’s common stock on June 30, 2026 is not less than the closing price on July 1, 2023. The number of shares delivered on the vesting date is determined by the percentile ranking of MannKind total shareholder return (TSR) over the period from July 1, 2023 until July 30, 2026 relative to the TSR of the Russell 3000 Pharmaceutical & Biotechnology Index over the same three-year period, as follows: less than 25th percentile=0% of target, 25th percentile=50% of target, 50th percentile=100% of target, 75th percentile=200% of target, 90th percentile or higher=300% maximum. Payout values will be interpolated between the percentile rankings above.

(4)

RSUs had a weighted average grant date fair value of $4.55 per share and vested immediately upon the grant date; however, the underlying shares of common stock will not be delivered until there is a separation of service such as resignation, retirement or death.

(5)

RSUs had a weighted average grant date fair value of $5.27 per share, of which 28,820 RSUs had a cliff vesting period of three years and 7,565 RSUs had a vesting period of 25% annually over four years.

Stock Based Compensation Expense Recognized in Condensed Consolidated Statements of Operations

Total stock-based compensation expense recognized in the condensed consolidated statements of operations as cost of goods sold, cost of revenue – collaborations and services, R&D, selling and general and administrative expense was as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
RSUs and options	$	4,442	$	3,475	$	13,324	$	10,358
Employee stock purchase plan		159		147		512		492
Total	$	4,601	$	3,622	$	13,836	$	10,850