Stock-based Compensation

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

Stock-based Compensation

Stock-based Compensation

Our 2019 Equity and Incentive Compensation Plan (the “EICP”) authorized at inception an aggregate of approximately 18,500,000 shares of common stock for awards to employees, directors and consultants. Under the EICP, in the three-month period ended June 30, 2020, we granted 3,594,984 stock options and 1,453,671 restricted stock units to our employees, primarily in connection with our annual incentive programs. The EICP authorizes the issuance of stock-based compensation in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares and units, and other stock-based awards. Also, in the first quarter of 2020, we awarded inducement stock options to purchase 1,000,000 shares of our common stock.

As of June 30, 2020, a total of 9,108,743 shares were available for issuance under our EICP, and stock-based awards to purchase 20,060,708 shares of common stock were outstanding under our current and former equity incentive plans, and inducement awards granted outside of our equity incentive plans to purchase 1,000,000 shares of common stock were outstanding. For the three-month periods ended June 30, 2020 and 2019, stock-based compensation expense was approximately $2.6 million and $1.2 million, respectively. At June 30, 2020, total unrecognized estimated compensation cost related to unvested stock-based awards was approximately $18.3 million, which is expected to be recognized by the end of 2024 using the straight-line method.

In June 2020, the Company modified stock option awards granted under the EICP or the Company’s prior equity plans for all then-current employees and directors by providing an extension to the period of time during which vested stock options can be exercised, first, for employees, following an employee’s voluntary termination of employment (or the involuntary termination by the Company without cause (as defined with respect to the applicable options) of the employee’s employment) with the Company and second, for directors, following a director’s death or voluntary termination of service with the Company, in each case following significant tenure with the Company. Upon modification, employees have post-employment exercise periods from six months up to a maximum of three years and directors have from twenty-four months up to thirty months maximum, with the exercise periods increasing based on the applicable individual’s tenure with the Company. The modification is applied to all stock option awards outstanding on the modification date to nonqualified stock options, and to those incentive stock options held by individuals who accepted the modification. Stock option awards issued post-modification will include the extended exercise provisions as described in this paragraph. Following evaluation of the modification of the stock option awards, we recorded stock compensation expense of $1.2 million for the incremental value of stock option awards vested prior to the modification date. The remaining incremental value of $0.5 million associated with the modification of the unvested stock option awards will be recognized over the remaining vesting period of these stock option awards.