Stock-Based Compensation

9 Months Ended

Sep. 30, 2022

Stock-Based Compensation

Stock-Based Compensation

7. Stock-Based Compensation

Summary of Stock Option Activity

The following table summarizes the stock option and award activity for the nine months ended September 30, 2022:

		Options Outstanding
			Weighted-		Weighted-
	Options and		Average		Average	Aggregate
	Awards		Exercise		Remaining	Intrinsic
	Available for	Number of	Price Per		Contractual	Value
	Grant	Options	Share		Life (years)	(In thousands)
Balance—December 31, 2021	1,038,956	1,783,298	$	5.21	8.0	$	10,891
Authorized	595,753
RSUs granted	(612,527)
RSUs cancelled/forfeited	24,094
Options granted	(489,244)	489,244	$	8.17
Options exercised		(112,971)	$	4.76		$	324
Options cancelled/forfeited	127,951	(150,814)	$	6.09
Balance—September 30, 2022	684,983	2,008,757	$	5.89	8.1	$	1,506
Options exercisable—September 30, 2022		837,333	$	5.45	7.0	$	826

The total grant date fair value of options vested was $798,000 and $178,000 during the three months ended September 30, 2022 and 2021, respectively, and $2.6 million and $711,000 during the nine months ended September 30, 2022 and 2021, respectively.

No options were granted during the three months ended September 30, 2022. The weighted-average grant date fair value of options granted was $3.59 per share during the three months ended September 30, 2021, and $5.40 and $3.58 during the nine months ended September 30, 2022 and 2021, respectively.

Of the 150,814 options cancelled/forfeited during the nine months ended September 30, 2022, 22,863 of the options relate to a prior stock-based compensation plan that are no longer available for grant under the current stock-based compensation plan.

2016 Employee Stock Purchase Plan

In January 2022, there was an increase of 198,584 shares reserved for issuance under the Company’s Employee Stock Purchase Plan (ESPP) pursuant to the terms of the ESPP. The Company had 814,341 shares available for future issuance under the Company’s ESPP as of September 30, 2022. Employees purchased no shares during the three months ended September 30, 2022. Employees purchased 37,017 shares for $167,000 during the nine months ended September 30, 2022. Employees purchased 32,186 shares for $92,000 during the three and nine months ended September 30, 2021.

Restricted Stock Units

The following table summarizes restricted stock units (RSUs) activity for the nine months ended September 30, 2022:

	RSUs Outstanding
		Weighted-
		Average
	Number of	Grant Date
	Restricted Stock	Fair Value Per
	Units	Share
Balance—December 31, 2021	384,307	$	5.00
Granted	612,527	$	7.12
Vested	(268,298)	$	5.90
Cancelled/forfeited	(24,094)	$	5.88
Balance—September 30, 2022	704,442	$	6.47

The fair value of RSUs is determined on the date of grant based on the market price of the Company’s common stock on that date.

Stock-based Compensation Expense

As of September 30, 2022, there was $4.3 million of total unrecognized stock-based compensation expense related to unvested options which is expected to be recognized over a weighted-average period of 2.6 years and there was $3.8 million of unrecognized stock-based compensation expense related to RSUs to be recognized over a weighted-average period of 2.5 years.