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Stock-based Compensation
 9 Months Ended
Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-based Compensation

12. Stock-based Compensation

The Company has various stock-based compensation plans, which are more fully described in our 2023 Financial Statements.

Upon completion of the Merger, the Company assumed SomaLogic's stock incentive plans. In addition, all outstanding options to purchase SomaLogic Common Stock and all restricted stock units in respect of shares of SomaLogic Common Stock that were outstanding immediately prior to the completion of the Merger were automatically adjusted by the exchange ratio of 1.11 and converted into an equity award of the same type covering shares of the Company's common stock, on the same terms and conditions (including any continuing vesting requirements), under the applicable Company plan and award agreement in effect immediately prior to the completion of the Merger.

During the three and nine months ended September 30, 2024, the Company recorded nil and $6.2 million, respectively, of stock-based compensation expense due to the acceleration of awards for certain SomaLogic executives in connection with the Merger.

Restricted Stock Units

 

 

 

Number of Units
 (in thousands)

 

 

Weighted-Average
Grant Date Fair Value per Unit

 

Balance at December 31, 2023

 

 

6,933

 

 

$

2.46

 

Assumed through acquisition

 

 

2,970

 

 

 

2.00

 

Granted

 

 

10,263

 

 

 

2.21

 

Vested

 

 

(4,002

)

 

 

2.34

 

Forfeited

 

 

(1,728

)

 

 

2.30

 

Balance at September 30, 2024

 

 

14,436

 

 

$

2.24

 

 

As of September 30, 2024, unrecognized stock-based compensation expense related to outstanding unvested restricted stock units ("RSUs") under the Company’s equity incentive plans was $29.8 million. The Company expects to recognize the expense over a weighted-average period of 3.1 years.

Stock Options

 

 

 

Number of
Options (in thousands)

 

 

Weighted-Average
Exercise Price
per Option

 

 

Weighted-
Average Remaining Contractual Life (in years)

 

 

Aggregate
Intrinsic
Value (1) (in thousands)

 

Balance at December 31, 2023

 

 

9,294

 

 

$

3.62

 

 

 

8.5

 

 

 

 

Assumed through acquisition

 

 

28,184

 

 

 

4.80

 

 

 

 

 

 

 

Granted

 

 

6,697

 

 

 

2.50

 

 

 

 

 

 

 

Exercised

 

 

(573

)

 

 

2.12

 

 

 

 

 

 

 

Cancelled

 

 

(3,374

)

 

 

3.92

 

 

 

 

 

 

 

Balance at September 30, 2024

 

 

40,228

 

 

$

4.26

 

 

 

6.2

 

 

$

196

 

Vested at September 30, 2024

 

 

28,006

 

 

$

4.76

 

 

 

5.1

 

 

$

93

 

Unvested options at September 30, 2024

 

 

12,222

 

 

$

3.10

 

 

 

8.7

 

 

$

103

 

 

(1)
Aggregate intrinsic value as of September 30, 2024 was calculated as the difference between the closing price per share of the Company’s common stock on The Nasdaq Global Select Market on September 30, 2024, which was $1.93, and the exercise price of the options, multiplied by the number of in-the-money options.

The total intrinsic value of options exercised during the three and nine months ended September 30, 2024 was nil and $0.6 million, respectively. The total intrinsic value of options exercised during each of the three and nine months ended September 30, 2023 was immaterial. As of September 30, 2024, the aggregate unrecognized compensation costs related to outstanding unvested options under the Company’s equity incentive plans were $22.5 million. The Company expects to recognize those costs over a weighted-average period of 2.6 years.

Performance-based Awards

In July 2023, the Company granted performance-based restricted stock units ("PSUs") to certain executive officers that vest based upon the achievement of specified revenue and EBITDA targets for the twelve months ended December 31, 2023, and the executive’s continued employment with the Company. Stock-based compensation expense is being recognized over the requisite service period, as it is deemed probable the Company will satisfy the performance measures. Certain of the specified revenue and EBITDA targets were met and the PSUs vested and were released from restriction in April 2024.

Activity under the performance-based awards was as follows:

 

 

 

Number of Units
(in thousands)

 

 

Weighted-Average
Grant Date Fair Value per Unit

 

Balance at December 31, 2023

 

 

309

 

 

$

2.42

 

PSU granted

 

 

100

 

 

 

2.25

 

Performance adjustment

 

 

(26

)

 

 

2.42

 

PSU released

 

 

(383

)

 

 

2.38

 

Balance at September 30, 2024

 

 

—

 

 

$

—

 

 

Stock-based Compensation Expense

Stock-based compensation expense is reported in the Company's condensed consolidated statement of operations as follows (in thousands):

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Cost of product revenue

 

$

136

 

 

$

151

 

 

$

441

 

 

$

524

 

Cost of services revenue

 

 

228

 

 

 

37

 

 

 

455

 

 

 

122

 

Cost of collaboration and other revenue

 

 

—

 

 

 

—

 

 

 

1

 

 

 

2

 

Research and development expense

 

 

724

 

 

 

459

 

 

 

4,480

 

 

 

1,241

 

Selling, general and administrative expense

 

 

4,833

 

 

 

2,739

 

 

 

18,885

 

 

 

7,759

 

Total stock-based compensation expense

 

$

5,921

 

 

$

3,386

 

 

$

24,262

 

 

$

9,648