Stock-Based Compensation |
8. Stock-Based Compensation 2017 Omnibus Incentive Plan (Omnibus Plan) The Company’s Omnibus Plan provides for an annual increase on January 1 of each year commencing in 2019 and ending on and including January 1, 2027 up to an amount equal to the lowest of (i) 4% of the total number of shares of common stock outstanding on a fully diluted basis as of December 31 of the immediately preceding calendar year, and (ii) such number of shares of common stock, if any, determined by the Company’s board of directors. Accordingly, on January 1, 2024, the number of shares of Common Stock reserved and available for issuance under the Omnibus Plan increased by 3,055,006 shares of common stock. Stock Options The Company’s stock option awards generally vest over four years and typically have a contractual life of ten years. As of March 31, 2024, there was $24.2 million of unrecognized compensation cost related to stock options, which is expected to be recognized over a weighted-average period of 3.0 years. During the three months ended March 31, 2024, the Company granted 1,566,575 stock options with a weighted average exercise price of $9.32 and per share weighted average grant date fair value of $7.55. Information related to stock options outstanding as of March 31, 2024 is as follows (in thousands, except share, exercise price and contractual term): | | | | | | | | | | | | | | | | | | Weighted-Average | | | | | | | | Weighted- | | Remaining | | | | | | Number of | | Average | | Contractual Term | | Aggregate Intrinsic | | | Stock Options | | Exercise Price | | (Years) | | Value (In thousands) | Outstanding, December 31, 2023 | | 5,043,593 | | $ | 9.33 | | 5.9 | | $ | 16,919 | Granted | | 1,566,575 | | $ | 9.32 | | | | | | Exercised | | (1,250) | | $ | 7.05 | | | | | | Forfeited or expired | | (68,211) | | $ | 7.06 | | | | | | Outstanding, March 31, 2024 | | 6,540,707 | | $ | 9.35 | | 6.0 | | $ | 15,079 | Exercisable, March 31, 2024 | | 2,943,720 | | $ | 9.18 | | 5.9 | | $ | 9,115 | Vested and expected to vest, March 31, 2024 | | 6,216,978 | | $ | 9.34 | | 6.0 | | $ | 14,542 |
Restricted Stock Units (RSUs) During the three months ended March 31, 2024, the Company granted 484,600 shares of RSUs with a weighted average grant date fair value of $9.32 which vest over four years. As of March 31, 2024, the Company had unvested RSUs of 902,952 shares with total unrecognized compensation expense of $7.9 million, which the Company expects to recognize over a weighted average period of approximately 3.1 years. During the three months ended March 31, 2024, the Company issued 107,875 shares of unrestricted common stock as a result of the vesting of 169,315 RSUs net of 61,440 shares of common stock withheld to satisfy tax withholding obligations. 2019 Employee Stock Purchase Plan Under the Employee Stock Purchase Plan, employees purchased 62,609 shares for $0.2 million during the three months ended March 31, 2024. Stock-based Compensation Expense Stock-based compensation expense is classified in the unaudited consolidated statements of operations and comprehensive loss for the three months ended March 31, 2024 and 2023 as follows (in thousands): | | | | | | | | | Three Months Ended | | | March 31, | | | 2024 | | 2023 | Research and development | | $ | 1,675 | | $ | 1,187 | General and administrative | | | 1,975 | | | 1,488 | Total | | $ | 3,650 | | $ | 2,675 |
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