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Stock-Based Incentive Compensation Plans
 9 Months Ended
Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Stock-Based Incentive Compensation Plans Stock-Based Incentive Compensation PlansA 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, 20222,132,750 
Authorized1,222,649 
Granted/Awarded(2,219,220)
Cancelled239,914 
Withheld for taxes7,039 
Shares available for grant as of September 30, 2022
1,383,132 
A summary of stock option activity for the nine months ended September 30, 2022 is set forth below:
Options Outstanding
Number of SharesWeighted-Average Exercise PriceWeighted Average Remaining Contractual Term (in Years)
Balances as of January 1, 20223,038,970 $2.61 8.83
Granted690,218 $7.83 
Exercised(129,200)$0.03 
Cancelled(93,232)$7.69 
Balances at September 30, 2022
3,506,756 $3.59 8.36
Vested and exercisable at September 30, 2022
1,518,126 $1.94 8.03
Vested and expected to vest at September 30, 2022
3,506,756 $3.59 8.36
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 September 30, 2022 and December 31, 2021, there were 111,527 and 174,171 shares of common stock, respectively, issued pursuant to early exercised options and subject to repurchase.
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. The second offering period was for six months beginning December 7, 2021 through June 6, 2022. The Company issued 147,217 shares under the ESPP for the three months ended June 30, 2022. As of September 30, 2022, 567,481 shares under the ESPP remain
available for purchase. The Board authorized a new offering period of six months, which began on June 7, 2022 and runs through December 6, 2022.
Restricted Stock Units
Activity with respect to restricted stock units was as follows:
Number of Shares Underlying Outstanding Restricted Stock UnitsWeighted Average Grant Date Fair Value
Unvested, January 1, 2022596,085 $22.06 
Granted1,529,002 $7.89 
Vested(156,196)$23.52 
Cancelled(146,682)$14.68 
Unvested, September 30, 2022
1,822,209 $10.64 
The Company recognized stock-based compensation as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Cost of goods sold$129 $93 $402 $134 
Research and development563 348 1,751 694 
Selling, general and administrative1,490 666 4,120 1,584 
Total stock-based compensation$2,182 $1,107 $6,273 $2,412 
The above stock-based compensation expense related to the following equity-based awards (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Stock options and restricted stock units$2,054 $714 $5,897 $1,839 
ESPP128 393 376 573 
Total stock-based compensation$2,182 $1,107 $6,273 $2,412 
As of September 30, 2022, the total unrecognized stock-based compensation expense related to unvested stock options and restricted stock units was $22.9 million, which will be amortized on a straight-line basis over a weighted average remaining period of 3.0 years.
As of September 30, 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.