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Stock-Based Incentive Compensation Plans | 9 Months Ended
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Sep. 30, 2024
Share-Based Payment Arrangement [Abstract] |
Stock-Based Incentive Compensation Plans | 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, 2024 | 1,314,502 |
Authorized | 1,391,173 |
Granted/Awarded | (1,073,758) |
Cancelled | 527,313 |
Withheld for taxes | 56,006 |
Shares available for grant as of September 30, 2024 | 2,215,236 |
A summary of stock option activity for the nine months ended September 30, 2024 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, 2024 | 2,588,765 |  |  | $ | 4.51 |  |  | 7.17
Granted | 487,654 |  |  | $ | 12.33 |  |  |
Exercised | (519,314) |  |  | $ | 1.56 |  |  |
Cancelled | (142,689) |  |  | $ | 14.67 |  |  |
Balances at September 30, 2024 | 2,414,416 |  |  | $ | 6.12 |  |  | 7.37
Vested and exercisable at September 30, 2024 | 1,548,358 |  |  | $ | 4.67 |  |  | 6.50
Vested and expected to vest at September 30, 2024 | 2,414,416 |  |  | $ | 6.12 |  |  | 7.37
Early Exercise of Stock Options Certain of the Company’s outstanding options are early exercisable pursuant to their terms. 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, 2024 and December 31, 2023, there were 0 and 30,211 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 2024, the number of shares of common stock available for issuance under the ESPP was increased by 278,234 shares as a result of the automatic increase provision in the ESPP. As of September 30, 2024, 583,289 shares under the ESPP remain available for purchase. The Company issued 94,743 and 164,710 shares under the ESPP during the nine months ended September 30, 2024 and 2023, respectively. The offering period and purchase period is determined by the board of directors. A new offering period of six months began June 7, 2024 and will end December 6, 2024. 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, 2024 | 2,430,803 |  |  | $ | 6.52 |
Granted | 586,104 |  |  | $ | 13.45 |
Vested | (983,744) |  |  | $ | 6.45 |
Cancelled | (384,624) |  |  | $ | 7.61 |
Unvested, September 30, 2024 | 1,648,539 |  |  | $ | 8.77 |
Stock-Based Compensation The Company recognized stock-based compensation as follows (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Cost of goods sold | $ | 180 |  |  | $ | 155 |  |  | $ | 539 |  |  | $ | 449 |
Research and development | 816 |  |  | 751 |  |  | 2,421 |  |  | 1,984 |
Selling, general and administrative | 1,595 |  |  | 1,515 |  |  | 4,719 |  |  | 4,768 |
Total stock-based compensation | $ | 2,591 |  |  | $ | 2,421 |  |  | $ | 7,679 |  |  | $ | 7,201 |
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,
| 2024 |  | 2023 |  | 2024 |  | 2023
Stock options and restricted stock units | $ | 2,462 |  |  | $ | 2,333 |  |  | $ | 7,284 |  |  | $ | 7,010 |
ESPP | 129 |  |  | 88 |  |  | 395 |  |  | 191 |
Total stock-based compensation | $ | 2,591 |  |  | $ | 2,421 |  |  | $ | 7,679 |  |  | $ | 7,201 |
As of September 30, 2024, the total unrecognized stock-based compensation expense related to unvested stock options and restricted stock units was $16.9 million, which will be amortized on a straight-line basis over a weighted average remaining period of 2.2 years. As of September 30, 2024, the Company had unrecognized stock-based compensation expense relating to the ESPP awards of $0.1 million, which is expected to be recognized over a weighted-average period of 0.2 years.

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