Stock-Based Compensation

12 Months Ended

Nov. 30, 2022

Share-Based Payment Arrangement [Abstract]

Equity Incentive Plans

The Company’s 2020 Equity Incentive Plan (the 2020 Plan) serves as the successor to the Company’s 2012 Equity Incentive Plan (together with the 2020 Plan, the Stock Plans) and provides for the granting of stock options, stock appreciation rights, restricted stock awards, restricted stock units (RSUs), performance awards and stock bonus awards to employees, directors, consultants, independent contractors and advisors of the Company.

Under the Stock Plans, the Company generally grants stock-based awards with service-based vesting conditions only. Options granted typically vest under various different vesting terms over a four-year period and expire ten years from the date of grant. In the case of an incentive stock option granted to an employee who at the time of grant owns stock representing more than 10% of the total combined voting power of all classes of stock, the exercise price shall be no less than 110% of the fair value per share on the date of grant, and the award shall expire five years from the date of grant. In the case of all other stock options, the per share exercise price shall be no less than 100% of the fair value per share on the date of grant. RSUs issued typically vest under various different vesting terms over a two- to four-year period.

Following the effectiveness of the 2020 Plan on July 22, 2020, the Company ceased making grants under the 2012 Plan. However, the 2012 Plan continues to govern the terms and conditions of the outstanding awards granted under it. Shares of common stock subject to awards granted under the 2012 Plan that cease to be subject to such awards by forfeiture or otherwise will be available for issuance under the 2020 Plan.

As of November 30, 2022, there were 834,291 shares of common stock reserved for future issuance pursuant to the 2020 Plan.

Stock options

Option activity under the Stock Plans is set forth below:


	Number of options outstanding	Weighted- average exercise price		Weighted- average contractual life (in years)	Aggregate intrinsic value(1) (in thousands)
Balances as of November 30, 2021	5,878,552	$	19.42	8.67	$	65,692
Options granted	3,239,906	18.03
Options exercised	(325,596)	3.31
Options forfeited	(535,905)	20.11
Balances as of November 30, 2022	8,256,957	$	19.47	8.44	$	13,210
Options vested and expected to vest as of November 30, 2022(2)	8,279,203	$	19.43	8.44	$	13,322
Options exercisable as of November 30, 2022	3,629,383	$	16.14	7.65	$	12,473

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(1)			The aggregate intrinsic values were calculated as the pre-tax difference between the exercise price of stock options and the quoted market price of the Company’s common stock on November 30, 2022 for all in‑the‑money stock options. The total intrinsic value of stock options exercised during the years ended November 30, 2022 and 2021 was $4.5 million and $15.9 million, respectively.


(2)			Certain stock options granted by the Company prior to the date of IPO are exercisable at the date of grant, with unvested shares subject to repurchase by the Company in the event of the voluntary or involuntary termination of employment of the stockholder. Such exercises are recorded as a liability in the consolidated balance sheet and reclassified into equity as the options vest. As of November 30, 2022, a total of 22,246 shares of common stock were subject to repurchase by the Company at the lower of (i) the fair value of such shares on the date of repurchase, or (ii) the original exercise price of such shares. The corresponding exercise value of $0.2 million as of November 30, 2022 is recorded as a stock-based compensation liability.

The fair value of options granted during the years ended November 30, 2022 and 2021 was estimated using the Black-Scholes option pricing model on the grant date using the following assumptions:


	November 30,
	2022	2021
Expected term (years)	5.50 - 6.07	5.50 - 6.12
Expected volatility	70% - 74%	70% - 79%
Risk-free interest rate	1.31% - 4.22%	0.52% - 1.24%
Dividend yield	0%	0%

The expected term represents the weighted-average period the stock-based payments are expected to remain outstanding. The expected term assumption for stock options was determined using the simplified method for “plain-vanilla” options. The expected stock price volatility assumption was determined by examining the historical volatilities for industry peers, as the Company does not have sufficient trading history for its common stock. The risk-free rate assumption is based on the U.S. Treasury instruments. The expected dividend assumption is based on the Company’s history and expectation of dividend payouts. The expected dividend yield is 0% as the Company has not paid and does not anticipate paying dividends on its common stock.

During the years ended November 30, 2022 and 2021, the weighted-average grant date fair value of options granted was $11.80 and $21.15 per share, respectively.

Restricted stock units

RSU activity under the Stock Plans is set forth below:


	Number of RSUs	Weighted-average grant date fair value
Balances as of November 30, 2021	20,000	$	27.42
RSUs granted	858,582	19.11
RSUs vested	(46,028)	20.40
RSUs forfeited	(47,730)	23.62
Balances as of November 30, 2022	784,824	$	18.97

During the years ended November 30, 2022 and 2021, the weighted-average grant date fair value of RSUs granted was $19.11 and $27.42 per share, respectively, and the total fair value of RSUs vested was $0.9 million and zero, respectively.

Employee Stock Purchase Plan

Under the Company’s 2020 Employee Stock Purchase Plan (the ESPP), eligible employees are entitled to purchase shares of common stock at a discount with accumulated payroll deductions. The purchase price for shares of common stock purchased under the ESPP will be 85% of the lesser of the fair market value of the Company’s common stock on (i) the first trading day of the applicable offering period or (ii) the last trading day of each purchase period in the applicable offering period.

During the year ended November 30, 2022, the Company issued 136,304 shares pursuant to the ESPP at a weighted-average price of $14.34 per share. As of November 30, 2022, there were 1,325,523 shares of common stock reserved for issuance pursuant to the ESPP.

The fair value of ESPP granted during the years ended November 30, 2022 and 2021 was estimated using the Black-Scholes option pricing model on the grant date using the following assumptions:


	November 30,
	2022	2021
Expected term (years)	0.5	0.5
Expected volatility	70% - 101%	60% - 75%
Risk-free interest rate	0.67% - 3.12%	0.05% - 0.06%
Dividend yield	0%	0%

Stock-Based Compensation

Stock-based compensation expense related to the Stock Plans and the ESPP that is included in the Company’s consolidated statements of operations is as follows (in thousands):


	Year Ended November 30,
	2022		2021
Research and development	$	16,808	$	8,079
General and administrative	11,323		7,721
Total stock-based compensation	$	28,131	$	15,800

During the years ended November 30, 2022 and 2021, capitalized stock-based compensation related to internal-use software development was $69,000 and zero, respectively. As of November 30, 2022, the total compensation cost related to stock-based awards not yet recognized was $79.3 million, which is expected to be amortized on a straight-line basis over the weighted-average remaining vesting period of approximately 2.73 years.