Stock-Based Compensation

9 Months Ended

Sep. 30, 2023

Stock-Based Compensation

Stock-Based Compensation

7. Stock-Based Compensation

Summary of Stock Option and Award Activity

The following table summarizes the stock option and award activity for the nine months ended September 30, 2023:

		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, 2022	689,472	1,994,726	$	5.88	7.8	$	1,275
Authorized	611,228
RSUs granted	(705,379)
RSUs cancelled/forfeited	4,461
Warrants exercised	(236)
Options granted	(8,000)	8,000	$	6.47
Options exercised	—	(143,070)	$	5.08		$	602
Options cancelled/forfeited	7,857	(7,857)	$	6.80
Balance—September 30, 2023	599,403	1,851,799	$	5.94	7.2	$	7,231
Options exercisable—September 30, 2023		1,208,065	$	5.67	6.7	$	5,061

The total grant date fair value of options vested was $0.4 million and $0.8 million during the three months ended September 30, 2023 and 2022, respectively, and $1.7 million and $2.6 million during the nine months ended September 30, 2023 and 2022, respectively.

No options were granted during the three months ended September 30, 2023 or 2022, respectively. The weighted-average grant date fair value of options granted was $3.85 and $5.40 per share during the nine months ended September 30, 2023 and 2022, respectively.

As of September 30, 2023, there was $2.8 million of total unrecognized stock-based compensation expense related to unvested options which is expected to be recognized over a weighted-average period of 1.8 years. Stock-based compensation cost for options capitalized within inventory at September 30, 2023 and 2022 was not material.

2016 Employee Stock Purchase Plan

In January 2023, there was an increase of 203,742 shares reserved for issuance under the Company’s Employee Stock Purchase Plan (ESPP) pursuant to the terms of the ESPP. The Company had 936,985 shares available for future issuance under the Company’s ESPP as of September 30, 2023. Employees did not purchase any shares during the three months ended September 30, 2023 and 2022, respectively. Employees purchased 40,894 shares for $181,000 during the nine months ended September 30, 2023. Employees purchased 37,017 shares for $167,000 during the nine months ended September 30, 2022.

Restricted Stock Units

The following table summarizes restricted stock units (RSUs) activity for the nine months ended September 30, 2023:

	RSUs Outstanding
		Weighted-
		Average
	Number of	Grant Date
	Restricted Stock	Fair Value Per
	Units	Share
Balance—December 31, 2022	656,646	$	6.45
Granted	705,379	$	6.49
Vested	(376,431)	$	6.25
Cancelled/forfeited	(4,461)	$	6.37
Balance—September 30, 2023	981,133	$	6.55

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.

As of September 30, 2023, there was $5.4 million of unrecognized stock-based compensation expense related to RSUs to be recognized over a weighted-average period of 1.9 years. Stock-based compensation cost related to RSU’s capitalized within inventory at September 30, 2023 and 2022 was not material.