XML 28 R18.htm IDEA: XBRL DOCUMENT
v3.23.3

Stock-Based Compensation | 9 Months Ended
--- | ---
Sep. 30, 2023
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | 11. Stock-based Compensation Stock-based Compensation Expense Total stock-based compensation expense recognized was as follows (in thousands):
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Research and development |  | $ | 2,545 |  |  | $ | 1,745 |  |  | $ | 7,132 |  |  | $ | 5,319 |
General and administrative |  |  | 3,015 |  |  |  | 2,446 |  |  |  | 8,216 |  |  |  | 7,557 |
Total stock-based compensation |  | $ | 5,560 |  |  | $ | 4,191 |  |  | $ | 15,348 |  |  | $ | 12,876 |
Stock Options A summary of stock option activity for the nine months ended September 30, 2023 is set forth below:
|  | Number of Shares Underlying Outstanding Options |  |  | Weighted Average Exercise Price |  |  | Weighted- Average Remaining Contractual Term (in years) |  |  | Aggregate Intrinsic Value (in thousands) |
Outstanding, December 31, 2022 |  |  | 6,203,020 |  |  | $ | 14.44 |  |  |  | 8.4 |  |  | $ | 780 |
Options granted |  |  | 4,167,242 |  |  | $ | 5.48 |  |  |  |  |  |  |
Options exercised |  |  | (946 | ) |  | $ | 4.76 |  |  |  |  |  |  |
Options forfeited or cancelled |  |  | (619,818 | ) |  | $ | 12.35 |  |  |  |  |  |  |
Outstanding, September 30, 2023 |  |  | 9,749,498 |  |  | $ | 10.74 |  |  |  | 8.4 |  |  | $ | — |
Options exercisable, September 30, 2023 |  |  | 3,602,027 |  |  | $ | 13.87 |  |  |  | 7.6 |  |  | $ | — |
Vested and expected to vest, September 30, 2023 |  |  | 9,749,498 |  |  | $ | 10.74 |  |  |  | 8.4 |  |  | $ | — |
The assumptions used in the Black Scholes Model to calculate stock-based compensation are as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2023 |  | 2022 |  | 2023 |  | 2022
Fair value of common stock |  | $1.37 - $3.38 |  | $14.16 - $16.89 |  | $1.37 - $9.15 |  | $11.49 - $19.97
Expected term (years) |  | 5.5 - 6.1 |  | 6.0 - 6.1 |  | 5.5 - 6.1 |  | 5.5 - 6.1
Volatility |  | 84.7% - 87.3% |  | 79.5% - 80.7% |  | 83.3% - 87.3% |  | 77.4% - 80.7%
Risk free rates |  | 4.1% - 4.6% |  | 2.7% - 4.0% |  | 3.5% - 4.6% |  | 1.6% - 4.0%
Dividend rate |  | 0.0% |  | 0.0% |  | 0.0% |  | 0.0%
Restricted Stock Units The summary of RSU activity and related information for the nine months ended September 30, 2023 is set forth below:
|  | Number of Units Outstanding |  |  | Weighted Average Grant Date Fair Value |
Outstanding, December 31, 2022 |  |  | 197,580 |  |  | $ | 7.8 |
RSUs granted |  |  | 513,700 |  |  | $ | 7.6 |
RSUs vested |  |  | (69,955 | ) |  | $ | 7.6 |
RSUs forfeited |  |  | (54,525 | ) |  | $ | 7.2 |
Outstanding, September 30, 2023 |  |  | 586,800 |  |  | $ | 7.8 |
Option repricing On August 8, 2023, the board of directors approved a stock option repricing (the Option Repricing) to be effective on August 14, 2023 (the Effective Date) in accordance with the terms of the Company’s 2015 Stock Incentive Plan and 2018 Plan (together, the Plans). Pursuant to the Option Repricing, the exercise price of each stock option previously granted under the Plans, totaling 6,431,077 options, was amended to reduce the exercise price of such options to $2.14 per share, the closing price of the Company’s common stock on the Nasdaq Global Market on the Effective Date. Under the terms of the Option Repricing, a repriced option will revert to its original exercise price if, prior to the one year anniversary of the Effective Date, (a) the option holder’s employment is terminated by the Company with cause or by the option holder or (b) the option is exercised. The repriced options otherwise retained their existing terms and conditions as set forth in the Plans and applicable award agreements. The stock option modification resulted in $4.6 million of incremental compensation cost, which was calculated using the Black-Scholes option-pricing model. Of the incremental compensation cost, $0.4 million was recognized in the three months ended September 30, 2023, and $4.2 million will be recognized on the straight-line basis over the remaining vesting period of the repriced options. The incremental cost is included in general and administrative expense and research and development expense on the condensed consolidated statements of operations and comprehensive loss. In addition, as of the Effective Date, the Company issued 1,418,042 options to purchase shares of common stock under the 2018 Plan to eligible employees who held inducement awards as of August 8, 2023. These new options were issued to eligible employees because their inducement awards granted under Nasdaq Listing Rule 5635(c)(4) are not eligible for repricing. The prior inducement awards remain outstanding under their original terms.

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