Stock-based Compensation

9 Months Ended

Sep. 30, 2022

Stock-based Compensation

Stock-based Compensation

14. Stock-based Compensation

Performance Share Units, Restricted Stock Units and Stock Options

Performance Share Units

The Company periodically grants PSUs to certain members of the Company's senior management team. PSUs vest subject to the satisfaction of annual and cumulative performance and/or market conditions established by the Compensation Committee.

A summary of the Company’s PSU activity for the nine months ended September 30, 2022 and related information is as follows:

		Weighted-Average
	Shares	Grant Date Fair Value
Outstanding at December 31, 2021	353,100	$	31.77
Granted	241,550		24.12
Vested	(126,081)		29.12
Forfeited	(22,104)		29.60
Performance adjustment	1,305		28.96
Outstanding at September 30, 2022	447,770	$	28.71

The number of PSUs granted represents the target number of shares of common stock that may be earned. However, the actual number of shares earned may vary based on the satisfaction of performance criteria. The weighted-average grant date fair value of PSUs granted for the nine months ended September 30, 2022, and 2021 was $24.12 and $35.15, respectively.

Restricted Stock Units

The Company granted RSUs to employees during the nine months ended September 30, 2022. The Company’s RSUs generally vest ratably over a four-year period of service. A summary of the Company’s RSU activity for the nine months ended September 30, 2022 and related information is as follows:

		Weighted-Average
	Shares	Grant Date Fair Value
Outstanding at December 31, 2021	1,620,023	$	22.48
Granted	1,272,497		17.48
Vested	(565,669)		21.93
Forfeited	(366,691)		20.58
Outstanding at September 30, 2022	1,960,160	$	19.75

The weighted-average grant date fair value per share of RSUs granted for the nine months ended September 30, 2022 and 2021 was $17.48 and $24.35, respectively. The total fair value of RSUs vested (measured on the date of vesting) for the nine months ended September 30, 2022, and 2021 was $10,020 and $11,165, respectively.

Stock Options

A summary of the Company’s stock option activity for the nine months ended September 30, 2022 and related information is as follows:

				Weighted-
			Weighted-	Average
			Average	Remaining		Aggregate
			Exercise Price	Contractual		Intrinsic
	Shares		per Share	Term (in years)		Value
Outstanding at December 31, 2021	2,728,169	$	18.33	5.8	$	6,070
Granted	—		—
Exercised	(302,752)		16.34
Cancelled	(268,916)		21.38
Outstanding at September 30, 2022	2,156,501	$	18.23	5.4	$	2,142
Exercisable at September 30, 2022	1,969,414	$	18.18	5.2	$	2,023

The weighted-average grant date fair value per share of stock options granted for the nine months ended September 30, 2021 was $12.60.

Employee Stock Purchase Plan

The Company’s 2015 Employee Stock Purchase Plan allows employees to purchase shares of the Company’s common stock. The purchase price is equal to 85% of the lower of the closing price of the Company’s common stock on (1) the first day of the purchase period or (2) the last day of the purchase period. During the nine months ended September 30, 2022, 22,627 shares of common stock were purchased for total proceeds of $337. The expense for the three months ended September 30, 2022 and 2021 was $28 and $58, respectively. The expense for the nine months ended September 30, 2022 and 2021 was $88 and $195, respectively.

Stock-based Compensation Expense

A summary of the allocation of the Company’s stock-based compensation expense for the three and nine months ended September 30, 2022 and 2021 is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Research and development	$	—	$	233	$	1,591	$	2,697
Selling, general and administrative		5,377		5,715		15,613		16,646
Total stock-based compensation expense	$	5,377	$	5,948	$	17,204	$	19,343

At September 30, 2022, there was approximately $36,243 of unrecognized compensation expense related to unvested options, restricted stock units and performance stock units, which is expected to be recognized as expense over a weighted average period of approximately 2.4 years.