Stock-Based Incentive Compensation Plans

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Stock-Based Incentive Compensation Plans

A summary of shares available for grant under the Company’s 2021 Equity Incentive Plan, or the 2021 Plan, is as follows:


			Shares Available for Grant
Shares available for grant as of January 1, 2022			2,132,750
Shares authorized			1,222,649
Granted/Awarded			(1,863,948)
Cancelled			68,008
Shares available for grant as of March 31, 2022			1,559,459

A summary of stock option activity for the three months ended March 31, 2022 is set forth below:


	Options Outstanding
	Number of Shares	Weighted-Average Exercise Price		Weighted Average Remaining Contractual Term (in Years)
Balances as of January 1, 2022	3,038,970	$	2.61	8.83
Granted	580,700	$	8.12
Exercised	(38,635)	$	0.03
Cancelled	(37,319)	$	0.06
Balances at March 31, 2022	3,543,716	$	3.56	8.78
Vested and exercisable at March 31, 2022	1,182,725	$	0.84	8.34
Vested and expected to vest at March 31, 2022	3,543,716	$	3.56	8.78

Early Exercise of Stock Options

The terms of the Company’s 2020 Stock Plan, or the 2020 Plan, and the 2021 Plan, permit the exercise of options granted under the plans prior to vesting, subject to required approvals. The shares of common stock issued from the early exercise of unvested stock options are restricted and continue to vest over the original implied service period. The Company has the option to repurchase any unvested shares at the original purchase price upon any voluntary or involuntary termination. The shares purchased by the employees and non-employees pursuant to the early exercise of stock options are not deemed, for accounting purposes, to be outstanding until those shares vest. The cash received in exchange for exercised and unvested shares related to stock options granted is recorded as a liability for the early exercise of stock options in accrued liabilities on the accompanying balance sheet and will be transferred into common stock and additional paid-in capital as the shares vest. As of March 31, 2022 and December 31, 2021, there were 143,156 and 174,171 shares of common stock issued pursuant to early exercised options and subject to repurchase, respectively.

Employee Stock Purchase Plan

In April 2021, the Company adopted the 2021 Employee Stock Purchase Plan, or ESPP. The Company allows eligible employees to purchase shares of the Company's common stock through payroll deductions at a 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 offering period, which is typically six months. There were 580,000 shares of common stock initially reserved for issuance under the ESPP. In January 2022, the number of shares of common stock available for issuance under the ESPP was increased by 244,529 shares as a result of the automatic evergreen increase provision in the ESPP. The ESPP offering periods and purchase periods are determined by the Company’s board of directors, or the Board.

The first offering period was for 0.6 years beginning May 20, 2021 through December 6, 2021. The Company issued 109,831 shares under the ESPP for the year ended December 31, 2021. As of March 31, 2022, 714,698 shares under the ESPP remain available for purchase. The Board authorized a new offering period of six months, which began on December 7, 2021 and runs through June 6, 2022.

Restricted Stock Units

Activity with respect to restricted stock units was as follows:


	Number of Shares Underlying Outstanding Restricted Stock Units	Weighted Average Grant Date Fair Value
Unvested, January 1, 2022	596,085	$	22.06
Granted	1,283,248	$	8.30
Cancelled	(30,689)	$	20.53
Unvested, March 31, 2022	1,848,644	$	12.53

The Company recognized stock-based compensation as follows (in thousands):


	Three Months Ended March 31,
	2022		2021
Cost of goods sold	$	110	$	10
Research and development	440		37
Selling, general and administrative	938		155
Total stock-based compensation	$	1,488	$	202

The above stock-based compensation expense related to the following equity-based awards (in thousands):


	Three Months Ended March 31,
	2022		2021
Stock options and restricted stock units	$	1,352	$	202
ESPP	136		—
Total stock-based compensation	$	1,488	$	202

As of March 31, 2022, the total unrecognized stock-based compensation expense related to unvested stock options and restricted stock units was $27.3 million, which will be amortized on a straight-line basis over a weighted average remaining period of 3.4 years.

As of March 31, 2022, the Company had unrecognized stock-based compensation expense relating to the ESPP awards of approximately $0.1 million, which is expected to be recognized over a weighted-average period of 0.2 years.