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Stockholders' Equity | 6 Months Ended
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Jun. 30, 2024
Equity [Abstract] |
Stockholders' Equity | Stockholders’ Equity Common Stock As of June 30, 2024 and December 31, 2023, the Company’s certificate of incorporation authorized the Company to issue up to 200,000,000 shares of common stock. Common stockholders are entitled to dividends as and when declared by the Company’s board of directors, subject to the rights of holders of all classes of stock outstanding having priority rights as to dividends. There have been no dividends declared to date. The holder of each share of common stock is entitled to one vote. In March and May 2024, the Company granted stock-based awards outside of the existing stock plans to its new Chief Executive Officer and new Chief Financial Officer, respectively. These awards were granted as a material inducement for accepting employment with the Company, in accordance with Nasdaq Listing Rule 5635(c)(4). The inducement awards consisted of a total of 997,681 shares of the Company’s common stock, which includes an aggregate of 331,156 shares of common stock issuable upon the vesting of restricted stock unit awards and 666,525 shares of common stock issuable upon the exercise of nonqualified stock option grants generally subject to the same terms and conditions as grants that are made under the 2020 Equity Incentive Plan. Shares Reserved for Future Issuance The Company has reserved shares of common stock for future issuances as follows:
| June 30, |  | December 31,
| 2024 |  | 2023
Common stock options issued and outstanding | 3,766,402 |  |  | 3,142,981 |
Common stock restricted stock units issued and outstanding | 3,197,736 |  |  | 2,244,903 |
Common stock available for future grants | 2,951,051 |  |  | 2,541,438 |
Common stock available for employee stock purchase plan | 1,731,920 |  |  | 1,436,823 |
Total | 11,647,109 |  |  | 9,366,145 |
Stock Option Plan A summary of stock option activity for the existing stock plans and the inducement awards for the six months ended June 30, 2024 is set forth below:
| Outstanding Options
| Number of Shares |  | Weighted Average Exercise Price
Balance, January 1, 2024 | 3,142,981 |  |  | $ | 16.40 |
Options granted | 895,125 |  |  | 9.09 |
Options exercised | (39,466) |  |  | 2.02 |
Options canceled | (232,238) |  |  | 21.85 |
Balance, June 30, 2024 | 3,766,402 |  |  | $ | 14.48 |
The aggregate intrinsic value of options outstanding as of June 30, 2024 was $3.7 million.
| June 30, 2024
| Number of Shares |  | Weighted Average Exercise Price |  | Weighted Average Contractual Life (in Years)
Options vested and exercisable | 1,954,036 |  | $ | 15.32 |  |  | 6.45
Options vested and expected to vest | 3,766,402 |  | $ | 14.48 |  |  | 7.64
Total aggregate intrinsic value of options vested and exercisable as of June 30, 2024 was $3.5 million. Restricted Stock Units A summary of restricted stock units activity for the existing stock plans and the inducement awards for the six months ended June 30, 2024 is set forth below:
| Number of Shares Underlying Outstanding Restricted Stock |  | Weighted Average Grant Date Fair Value
Unvested, January 1, 2024 | 2,244,903 |  |  | $ | 15.74 |
Granted | 1,705,208 |  |  | 8.89 |
Vested | (505,946) |  |  | 16.10 |
Canceled | (246,429) |  |  | 14.75 |
Unvested, June 30, 2024 | 3,197,736 |  |  | $ | 12.11 |
The aggregate intrinsic value of restricted stock units outstanding as of June 30, 2024 was $20.3 million. The fair value as of the respective vesting dates of restricted stock units that vested during the three months ended June 30, 2024 and June 30, 2023 was $2.6 million and $2.7 million, respectively. The fair value as of the respective vesting dates of restricted stock units that vested during the six months ended June 30, 2024 and June 30, 2023 was $4.2 million and $3.5 million, respectively. Total Stock-Based Compensation Stock-based compensation expense is reflected in the statements of operations and comprehensive loss as follows (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Cost of goods sold | $ | 435 |  |  | $ | 391 |  |  | $ | 816 |  |  | $ | 614 |
Research and development | 714 |  |  | 760 |  |  | 1,487 |  |  | 1,326 |
Selling, general and administrative | 4,771 |  |  | 4,711 |  |  | 9,290 |  |  | 8,560 |
Total | $ | 5,920 |  |  | $ | 5,862 |  |  | $ | 11,593 |  |  | $ | 10,500 |
The above stock-based compensation expense related to the following equity-based awards (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Stock options and restricted stock units | $ | 5,818 |  |  | $ | 5,799 |  |  | $ | 11,299 |  |  | $ | 10,339 |
Employee stock purchase plan | 102 |  |  | 63 |  |  | 294 |  |  | 161 |
Total | $ | 5,920 |  |  | $ | 5,862 |  |  | $ | 11,593 |  |  | $ | 10,500 |
Stock-based compensation of $0.5 million and $0.4 million was capitalized into inventory for the three months ended June 30, 2024 and June 30, 2023, respectively. Stock-based compensation of $0.9 million and $0.8 million was capitalized into inventory for the six months ended June 30, 2024 and June 30, 2023, respectively. Stock-based compensation capitalized in prior periods of $0.4 million and $0.4 million was recognized as cost of sales in the three months ended June 30, 2024 and June 30, 2023, respectively. Stock-based compensation capitalized in prior periods of $0.8 million and $0.6 million was recognized as cost of sales in the six months ended June 30, 2024 and June 30, 2023, respectively. As of June 30, 2024, there was $50.6 million of unrecognized compensation costs related to unvested common stock options and restricted stock units, expected to be recognized over a weighted-average period of 2.7 years. As of June 30, 2024, the Company had unrecognized stock-based compensation relating to the employee stock purchase plan of less than $0.1 million, which is expected to be recognized over a weighted-average period of 0.1 years. Stock Modification In February 2024, the Company’s former Chief Executive Officer, Glendon French, resigned as President and Chief Executive Officer, effective as of March 15, 2024. Following this date, Mr. French continued as a full-time employee of the Company in the capacity of Senior Advisor to the new President and Chief Executive Officer until May 1, 2024, when his employment ceased. Thereafter, Mr. French has continued to serve as a member of the Company’s board of directors, and his outstanding equity awards have continued to vest in accordance with their terms, subject to his continued service to the Company as a member of the board of directors. The Company evaluated the change in status in accordance with ASC 718 and determined that there was a modification to the unvested awards expected to vest after March 15, 2024. The total stock-based compensation expense related to the modification, evaluated as of the modification date, was $6.3 million, to be recognized over the remaining vesting periods. The Company recorded $0.7 million and $1.1 million in stock-based compensation expenses related to the modification for the three and six months ended June 30, 2024.

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