Stock-Based Compensation

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

NOTE 9. STOCK-BASED COMPENSATION

Employee Stock Purchase Plan

The Company’s Employee Stock Purchase Plan (“ESPP”) provides participating employees with the opportunity to purchase the Company’s common stock at 85% of the market price at the lesser of the date the purchase right is granted or exercisable. Eligible employees can contribute up to 15% of their gross base earnings for purchases under the ESPP through regular payroll deductions, limited to $25,000 worth of the Company’s shares of common stock for each calendar year in which the purchase right is outstanding. The Company currently holds offerings consisting of six month periods commencing on January 1st and July 1st of each calendar year, with a single purchase date at the end of the purchase period on June 30th and December 31st of each calendar year.

The Company issued 37,146 shares upon exercise of purchase rights during the three and six months ended June 30, 2023. The Company recognizes compensation expense on a straight-line basis over the service period. During the three and six months ended June 30, 2023, the Company recognized $60 and $182, respectively, of compensation expense related to the ESPP.‌ No such shares were issued, nor was any compensation expense related to the ESPP recognized during the three and six months ended June 30, 2022.

Stock Options

The following table summarizes the Company’s stock option plan and the activity for the six months ended June 30, 2023:


	Shares			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)
Outstanding, December 31, 2022		6,538,536		$	10.02		7.36
Granted		225,000			18.33
Exercised or released		(365,273	)		6.75
Forfeited or expired		(243,439	)		15.42
Outstanding, June 30, 2023		6,154,824		$	10.30		7.11
Exercisable, June 30, 2023		3,985,190		$	7.97		6.46
Vested and expected to vest at June 30, 2023		6,146,498		$	10.29		7.11

During the three months ended June 30, 2023 and 2022, the Company recognized $1,840 and $2,083, respectively, of compensation expense related to stock options. During the six months ended June 30, 2023 and 2022, the Company recognized $3,596 and $4,097, respectively of compensation expense related to stock options. Stock-based compensation expenses are recorded in Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations and Comprehensive Loss.

Restricted Stock Units

The following table summarizes the Company’s restricted stock units activity for the six months ended June 30, 2023.


	Restricted Stock Units			Weighted-Average Fair Value
Outstanding, December 31, 2022		964,054		$	17.74
Granted		571,269			17.93
Vested		(50,539	)		16.82
Forfeited or expired		(144,795	)		17.81
Outstanding, June 30, 2023		1,339,989		$	17.85
Vested and expected to vest at June 30, 2023		1,324,884		$	17.85

During the three and six months ended June 30, 2023, the Company recognized $1,760 and $3,186, respectively, of compensation expense related to RSUs. During the three and six months ended June 30, 2022, the Company recognized $369 of compensation expense related to RSUs in each period. Stock-based compensation expenses are recorded in Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations and Comprehensive Loss.