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Stock-Based Incentive Compensation Plans | 6 Months Ended
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Jun. 30, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Stock-Based Incentive Compensation Plans | Stock-Based Incentive Compensation Plans 2018 Equity Incentive Plan In October 2018, the Company adopted the 2018 Equity Incentive Plan (the "2018 EIP"). The number of shares of common stock reserved for issuance under the 2018 EIP will automatically increase on January 1 of each year, beginning January 1, 2019, and continuing through and including January 1, 2028, by 5% of the total number of shares of the Company's capital stock outstanding on December 31 of the preceding calendar year, or a lesser number of shares determined by the Company's Board of Directors. On January 1, 2019, the total number of shares of common stock reserved for issuance increased by 1,222,538 shares. The Company filed a Registration Statement on Form S-8 on March 22, 2019 to register these additional shares reserved for issuance under the 2018 EIP. As of June 30, 2019, a total of 2,591,917 shares of common stock are available for future grants under the 2018 EIP. Stock Options The table below summarizes the stock option activity for the six months ended June 30, 2019:
|  | Number of Shares |  | Weighted- Average Exercise Price
Outstanding as of December 31, 2018 |  | 2,641,198 |  |  | $4.27
Options granted |  | 630,639 |  |  | 20.91
Options exercised |  | (184,130 | ) |  | 3.10
Options canceled |  | (62,964 | ) |  | 6.61
Outstanding as of June 30, 2019 |  | 3,024,743 |  |  | 7.76
As of June 30, 2019, there was $7.4 million of unrecognized compensation cost related to stock options granted. These costs are expected to be recognized over a period of approximately 2.9 years. The table below summarizes the weighted average grant date fair value per share and the assumptions used to estimate the grant date fair value of the stock options granted during the respective periods using the Black-Scholes option-pricing model:
| Three Months Ended |  | Six Months Ended
| June 30, |  | June 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
Weighted average grant date fair value per share | $8.00 |  | $2.11 |  | $9.79 |  | $2.09
Expected term | 5.0 to 7.0 years |  | 5.0 to 7.0 years |  | 5.0 to 7.0 years |  | 5.0 to 7.0 years
Expected volatility | 46.6% to 47.2% |  | 42.0% to 44.4% |  | 41.7% to 47.2% |  | 42.0% to 45.1%
Risk-free interest rate | 1.83% to 2.41% |  | 2.83% to 2.93% |  | 1.83% to 2.59% |  | 2.35% to 2.93%
Dividend yield | —% |  | —% |  | —% |  | —%
Early Exercise of Unvested Stock Options Early exercises of stock options are subject to a right of repurchase by the Company of any unvested shares. The repurchase rights lapse over the original vesting period of the options. The Company accounts for the cash received in consideration for the early exercised options as a liability included in accrued liabilities, which is then reclassified to stockholders’ equity as the options vest. At June 30, 2019 and December 31, 2018, the Company had a total of 46,811 and 74,019 shares of common stock, respectively, subject to repurchase under the 2008 Stock Option Plan and $0.2 million and $0.3 million, respectively, of associated liabilities for the repurchase. Restricted Stock Units The table below summarizes restricted stock units activity for the six months ended June 30, 2019:
|  | Number of Shares |  | Weighted Average Grant Date Fair Value
Outstanding as of December 31, 2018 |  | 53,436 |  |  | $11.69
Granted |  | 548,906 |  |  | 20.49
Forfeited |  | (10,384) |  |  | 19.84
Vested |  | (27,320 | ) |  | 20.97
Outstanding as of June 30, 2019 |  | 564,638 |  |  | 19.65
As of June 30, 2019, there was a total unrecognized compensation cost of $9.2 million related to the restricted stock units granted. These costs are expected to be recognized over a period of approximately 3.4 years. Employee Stock Purchase Plan Under the Company's 2018 Employee Stock Purchase Plan (the "ESPP") adopted in October 2018, the Company allows eligible employees to purchase shares of the Company's common stock through payroll deductions at the price equal to 85% of the lesser of the fair market value of the stock as of the first date or the ending date of each six month offering period. There were 515,307 shares of common stock originally reserved for issuance under the ESPP. On March 22, 2019, the Company filed a Registration Statement on Form S-8 to register 244,507 additional shares of common stock for issuance under the ESPP. As of June 30, 2019 and December 31, 2018, total accumulated ESPP related employee payroll deductions amounted to $0.2 million and $0.4 million, respectively, which were included within accrued compensation and related expenses in the consolidated balance sheets. For the three and six months ended June 30, 2019, the Company recognized $0.2 million and $0.4 million, respectively, of stock-based compensation expense related to ESPP. As of June 30, 2019, the unrecognized compensation cost for the ESPP was $0.3 million. The Company estimated the fair value of ESPP purchase rights during the offer period using a Black-Scholes option pricing model with the following assumptions:
|  | Three and Six Months Ended
|  | June 30, 2019
Expected term |  | 0.5 years
Expected volatility |  | 58.35%
Risk-free interest rate |  | 2.49%
Dividend yield |  | —%
Stock-Based Compensation The table below presents the detail of stock-based compensation expense amounts included in the consolidated statements of operations (in thousands):
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2019 |  | 2018 |  | 2019 |  | 2018
Cost of goods sold |  | $ | 63 |  |  | $ | 6 |  |  | $ | 106 |  |  | $ | 12 |
Sales and marketing |  | 940 |  |  | 113 |  |  | 1,674 |  |  | 240 |
Research and development |  | 124 |  |  | 31 |  |  | 220 |  |  | 70 |
General and administrative |  | 687 |  |  | 213 |  |  | 1,685 |  |  | 432 |
|  | $ | 1,814 |  |  | $ | 363 |  |  | $ | 3,685 |  |  | $ | 754 |

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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