XML 40 R14.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

Stock-Based Compensation Expense | 6 Months Ended
--- | ---
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation Expense | Note 6 – Stock-Based Compensation Expense The Company has three equity incentive compensation plans: the 2006 Plan, the 2015 Plan and the 2021 Plan. 2006 Plan The 2006 Plan was originally adopted by the Board and approved by the Company’s stockholders in 2006. The 2006 Plan was terminated in 2015 in connection with the adoption of the 2015 Plan and as a result no new awards may be issued under the 2006 Plan. However, the 2006 Plan will continue to govern the terms and conditions of the outstanding awards previously granted under the 2006 Plan. 2015 Plan The 2015 Plan was originally adopted by the Board and approved by the Company’s stockholders in 2015. In July 2021, the 2015 Plan terminated immediately prior to effectiveness of the 2021 Plan with respect to the grant of future awards. However, the 2015 Plan will continue to govern the terms and conditions of the outstanding awards previously granted under the 2015 Plan. 2021 Plan On July 28, 2021, the 2021 Plan was adopted and approved by the Board and stockholders prior to the IPO and became effective on the business day immediately prior to the effective date of the Company’s IPO registration statement. The 2021 Plan provides for the grant of incentive stock options to employees and any subsidiary corporations’ employees, and for the grant of nonstatutory stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), and performance awards to employees, directors, and consultants and subsidiary corporations’ employees and consultants. The number of shares of the Company’s common stock originally available for issuance under the 2021 Plan was equal to 2,420,135 shares of common stock plus any shares subject to awards granted under the 2015 Plan and the 2006 Plan that, after the effectiveness of the 2021 Plan, expire or otherwise terminate without having been exercised in full, are tendered to or withheld by the Company for payment of an exercise price or for tax withholding obligations, or are forfeited to or repurchased by the Company due to failure to vest, with the maximum number of shares to be added to the 2021 Plan from the 2015 Plan and 2006 Plan equal to 4,569,530 shares of common stock. Evergreen provision The number of common shares reserved for issuance under the 2021 Plan will be increased automatically on the first day of each fiscal year beginning with the 2022 fiscal year and ending on the ten year anniversary of the date the Board approved the 2021 Plan, by a number equal to the least of: (i) 7,260,406 shares of our common stock; (ii) 4% of the outstanding shares of our common stock on the last day of the immediately preceding fiscal year; or (iii) such lesser number of shares of our common stock as the administrator may determine. The 2021 Plan is administered by the Board. On January 1, 2024 and 2023, the number of shares available under the 2021 Plan increased by 1,445,580 and 1,130,735 shares of common stock, respectively pursuant to this feature. As of June 30, 2024, the number of shares of the Company’s common stock available for future issuance under the 2021 Plan was equal to 951,817 shares of common stock. 2021 ESPP On July 28, 2021, the Board and stockholders adopted and approved the 2021 ESPP. As of June 30, 2024, the number of shares of the Company’s common stock available for future issuance under the 2021 ESPP was equal to 538,942 shares of common stock. The 2021 ESPP provides eligible employees of the Company and its subsidiaries with the opportunity to purchase shares of the Company’s common stock at a purchase price equal to 85% of the common stock’s fair market value on the first trading day or last trading day of each purchase period, whichever is lower. The 2021 ESPP provides for two six-month purchase periods every twelve months: May 1 through October 31 and November 1 through April 30. The initial purchase period began on November 1, 2021. Evergreen provision The number of common shares reserved for issuance under the 2021 ESPP will be increased automatically on the first day of each fiscal year beginning with the 2022 fiscal year, by a number equal to the least of: (i) 1,452,081 shares; (ii) 1% of the outstanding shares of our common stock on the last day of the immediately preceding fiscal year; or (iii) such other amount as the administrator may determine. The 2021 ESPP is administered by the Board. No additional shares were reserved for issuance on January 1, 2024 and 2023 pursuant to this feature. Stock-Based Compensation Expense The purpose of the 2021 Plan and 2021 ESPP is to provide a means by which eligible recipients of stock awards may be given an opportunity to benefit from increases in the value of the common stock in order to retain or procure the services of the employees, members of the Board and consultants and provide them with an incentive to promote the Company’s success and accomplish corporate goals. Stock option awards are granted with an exercise price of no less than 100% of estimated fair market value on the date of grant. Time based awards generally vest over four years as follows, subject to the optionee’s continuing service: (i) one fourth of the total number of shares vest and become exercisable on the one-year anniversary and then 1/48th of the total number of shares subject to the option vest and become exercisable on each monthly anniversary thereafter for the remaining three years, or (ii) 1/48th of the total number of shares subject to the option vest and become exercisable each month over four years. A summary of the stock option activities related to the Equity Plans for the six months ended June 30, 2024 is presented below:
|  |  | Number of Options |  |  | Weighted Average Exercise Price |  |  | Weighted Avg Remaining Contractual Life (Years) |
Options outstanding as of December 31, 2023 |  |  |  | 6,777,404 |  |  | $ | 13.02 |  |  |  | 6.51 |
Granted |  |  |  | 799,502 |  |  |  | 55.89 |  |  |  |
Exercised |  |  |  | (1,258,874 | ) |  |  | 10.53 |  |  |  |
Forfeited |  |  |  | (62,995 | ) |  |  | 16.05 |  |  |  |
Expired |  |  |  | (10,236 | ) |  |  | 4.57 |  |  |  |
Options outstanding as of June 30, 2024 |  |  |  | 6,244,801 |  |  |  | 18.99 |  |  |  | 6.78 |
Exercisable as of June 30, 2024 |  |  |  | 3,623,940 |  |  | $ | 13.23 |  |  |  | 5.45 |
As of June 30, 2024 and December 31, 2023 the intrinsic value of options vested was $170.1 million and $121.3 million, respectively, and of all options outstanding was $257.2 million and $185.0 million, respectively. During the six months ended June 30, 2024 and 2023, the total cash received from the exercise of stock options was $13.3 million and $3.4 million, respectively. The total fair value less strike price of these options was $50.5 million and $5.2 million, respectively. A summary of non-vested restricted stock unit activities for the six months ended June 30, 2024 is as follows:
|  |  |  |  |  | Weighted |
|  |  |  |  |  | Average |
|  |  | Number of |  |  | Grant Date |
|  |  | Shares |  |  | Fair Value |
Unvested at December 31, 2023 |  |  |  | 650,357 |  |  | $ | 15.80 |
Granted |  |  |  | 183,231 |  |  |  | 56.36 |
Vested |  |  |  | (165,567 | ) |  |  | 17.99 |
Forfeited |  |  |  | (18,033 | ) |  |  | 15.71 |
Unvested at June 30, 2024 |  |  |  | 649,988 |  |  | $ | 26.68 |
Stock-based compensation expense was classified in the accompanying condensed consolidated statements of operations and comprehensive income (loss) as follows (in thousands):
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Research and development |  | $ | 1,395 |  |  | $ | 1,021 |  |  | $ | 2,501 |  |  | $ | 1,823 |
Selling, general and administrative |  |  | 4,210 |  |  |  | 2,639 |  |  |  | 7,410 |  |  |  | 4,910 |
Cost of sales |  |  | 500 |  |  |  | 295 |  |  |  | 890 |  |  |  | 517 |
|  | $ | 6,105 |  |  | $ | 3,955 |  |  | $ | 10,801 |  |  | $ | 7,250 |
As of June 30, 2024 and December 31, 2023, there were 2,620,861 and 2,539,445 unvested options, respectively. As of June 30, 2024 and December 31, 2023, total unrecognized expense related to unvested stock options was approximately $44.1 million and $22.7 million, respectively. Both amounts are expected to be recognized over a weighted average period of approximately 2.5 and 2.4 years, respectively. As of June 30, 2024, and December 31, 2023, total unrecognized expense related to non-vested restricted stock units was approximately $15.3 million and $8.3 million, respectively. The unrecognized compensation cost is expected to be recognized over a weighted average period of 2.4 years and 2.3 years, respectively. The following table presents the range and weighted-average assumptions, used in the Black-Scholes option pricing model to determine the fair value of stock options:
|  | Six Months Ended June 30,
|  | 2024 |  | 2023
|  | Range |  | Weighted Average |  | Range |  | Weighted Average
Expected volatility |  | 69.0% to 72.0% |  | 71.0% |  | 64.9% to 65.7% |  | 65.1%
Risk-free interest rate |  | 3.9% to 4.7% |  | 4.2% |  | 3.4% to 4.2% |  | 4.1%
Expected life (in years) |  | 6.0 years |  | 6.0 years |  | 6.0 to 10.0 years |  | 6.0 years
Expected dividend yield |  | 0.0% |  | 0.0% |  | 0.0% |  | 0.0%
Grant date fair value |  | $36.89 to $60.65 |  | $55.93 |  | $12.91 to $28.80 |  | $15.26
Common Stock Each share of common stock is entitled to one vote. Common stock reserved for future issuance consisted of the following:
|  | June 30, 2024 |  |  | December 31, 2023 |
Stock options issued and outstanding under the Equity Plans |  |  | 6,244,801 |  |  |  | 6,777,404 |
Shares available for future issuance under the 2021 Plan |  |  | 951,817 |  |  |  | 358,610 |
Restricted stock units issued under the 2021 Plan |  |  | 649,988 |  |  |  | 650,357 |
Shares available for future issuance under 2021 ESPP |  |  | 538,942 |  |  |  | 577,847 |
Total shares of common stock reserved |  |  | 8,385,548 |  |  |  | 8,364,218 |

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2)(i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (l) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration