Stock-Based Awards

9 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

Stock-Based Awards

8. Stock-Based Awards

The Company grants stock-based awards, including stock options, restricted stock units and other unit awards under its 2019 Equity Incentive Plan (the “2019 Plan”), which was approved by its stockholders on February 28, 2019 and amended in March 2021 and

March 2022. The Company also has outstanding stock option awards under its 2012 Equity Incentive Plan (the “2012 Plan”) and its amended and restated 1995 Equity Incentive Plan (the “1995 Plan”), but is no longer granting awards under these plans.

The following table summarizes stock option activity, including performance-based options, for the year-to-date period ending June 30, 2022:

	Shares Issuable Under Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
	(in thousands)					(in years)		(in thousands)
Outstanding as of September 30, 2021		3,852		$	48.61		6.4	$	49,173
Granted		764			71.97
Exercised		(447	)		41.05
Forfeited		(149	)		67.64
Outstanding as of June 30, 2022		4,020		$	53.19		6.2	$	19,959
Options vested and expected to vest as of    June 30, 2022		4,020		$	53.19		6.2	$	19,959
Options exercisable as of June 30, 2022		2,543		$	48.94		5.0	$	18,230

Market and Performance-Based Stock Unit Awards

The Company awards both performance share units, or PSUs, and relative total stockholder return units, or rTSRUs, to its executive officers. The number of units granted represents the target number of shares of common stock that may be earned; however, the actual number of shares that may be earned ranges from 0% to 150% of the target number. The number of shares cancelled represents the target number of shares, less any shares that vested. The following table summarizes PSU and rTSRU activity for the year-to-date period ending June 30, 2022:

	PSUs					rTSRUs
	Shares			Weighted Average Grant Date Fair Value		Shares			Weighted Average Grant Date Fair Value
	(in thousands, except per share data)
Unvested at September 30, 2021		111		$	49.31		111		$	31.26
Granted		33			77.39		33			54.80
Vested		(5	)		61.59		(18	)		40.13
Cancelled		(41	)		39.55		(28	)		18.62
Unvested at June 30, 2022		98		$	53.95		98		$	35.57

Restricted Stock Units

The following table summarizes the restricted stock unit activity for the year-to-date period ending June 30, 2022:

	Restricted Stock Units			Weighted Average Grant Date Fair Value
	(in thousands, except per share data)
Unvested at September 30, 2021		117		$	43.57
Granted		138			75.33
Vested		(29	)		43.57
Cancelled		(25	)		59.86
Unvested at June 30, 2022		201		$	63.29

Stock-Based Compensation Expense

During the three and nine months ended June 30, 2022 and 2021 the Company recognized the following stock-based compensation expense:

	Three Months Ended				Nine Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
	(in thousands)
Research and development	$	2,202	$	2,569	$	7,496	$	7,525
General and administrative		5,401		2,906		12,640		8,113
	$	7,603	$	5,475	$	20,136	$	15,638

	Three Months Ended				Nine Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
	(in thousands)
Stock options	$	5,079	$	4,555	$	14,790	$	13,418
Performance stock units		1,559		198		1,930		198
rTSRUs		207		405		1,171		1,126
Restricted stock units		758		317		2,245		896
	$	7,603	$	5,475	$	20,136	$	15,638

During the three and nine months ended June 30, 2022, the Company recognized stock-based compensation expense for performance-based stock units for which vesting became probable upon achievement of performance-based targets that occurred during the performance period.

As of June 30, 2022, the Company had an aggregate of $57,897 of unrecognized stock-based compensation cost, which is expected to be recognized over a weighted average period of 2.8 years.