Stock Compensation

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

6. Stock Compensation

Stock compensation expense included in the Company’s condensed consolidated statements of operations and comprehensive loss is as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in thousands)
Research and development expenses	$	13,118	$	8,139	$	24,713	$	15,249
General and administrative expenses		10,293		7,008		20,216		13,353
	$	23,411	$	15,147	$	44,929	$	28,602

Market-Based Awards

During the six months ended June 30, 2023, the Company granted 1,512,820 stock options and 405,770 RSUs to certain employees, with vesting over specified periods of continued service and contingent upon achievement of certain market conditions. The Company measured the fair value of such awards on the grant date using a Monte Carlo Simulation, incorporating various option pricing inputs, including (a) estimated expected term from grant through exercise, or 6.5 years, (b) risk-free interest rate, or 3.5%, (c) historical volatility, or 75.0%, and (d) dividend yield, or 0.0%. Ultimately, the fair value of the market-based awards was estimated as $12.53 per share for the options and $16.11 per share for the RSUs, yielding a total of $25.5 million. The total compensation expense, or $25.5 million, is being recognized

under the accelerated attribution method over the requisite service period of 3.0 years, regardless of whether the market conditions have been achieved. The impact of forfeitures, if any, will be recognized upon occurrence.

As of June 30, 2023, the total unrecognized compensation related to unvested market-based awards granted was $15.5 million, which the Company expects to recognize over a period of 2.6 years.