Equity Incentive Plans

3 Months Ended

Mar. 31, 2025

Share-Based Payment Arrangement [Abstract]

Equity Incentive Plans

Equity Incentive Plans

Stock Options

The activity related to stock options during the three months ended March 31, 2025 consisted of the following:

	March 31, 2025
	Number of shares (in thousands)	Weighted-average exercise price $
Outstanding at December 31, 2024	9,276	$	10.92
Granted	2,189	7.56
Exercised/released	(59)	6.02
Cancelled/forfeited	(305)	7.27
Outstanding at March 31, 2025	11,101	$	10.39

The following weighted-average assumptions were used to estimate the fair value of the options granted during the three months ended March 31, 2025 and 2024:

	Three Months Ended March 31,
	2025			2024
Expected volatility	78		%	77		%
Risk-free interest rate	4.00		%	4.04		%
Expected term (in years)	5.0			5.0
Expected dividend yield	0.0		%	0.0%
Fair value per common share option	$	4.95		$	4.62

Performance Awards and Restricted Stock Units

The fair value of performance awards and RSUs is based on the market price of the Company's common shares on the date prior to the grant. During the three months ended March 31, 2025, the Company granted performance awards that vest in four tranches upon the Company’s common shares achieving four progressively higher target prices, and each tranche is further subject to a one year service period following tranche achievement. The Company estimated the fair value of each award with a market and service condition on the date of grant by using a Monte Carlo simulation (lattice model).

The activity related to performance awards and RSUs for the three months ended March 31, 2025 consisted of the following:

	March 31, 2025
	Number of shares (in thousands)	Weighted-average fair value price
Unvested balance, December 31, 2024	7,986	$	8.08
Granted	1,420	$	6.80
Vested	(2,612)	$	8.57
Forfeited	(1,867)	$	8.22
Unvested balance, March 31, 2025	4,927	$	7.40

Share-based Compensation Expense

The classification of share-based compensation expense consisted of the following (in thousands):

	Three Months Ended  March 31,
	2025		2024
Research and development	$	93	$	(2,166)
Selling, general and administrative	(3,513)		7,537
Capitalized in inventory, net	11		366
Share-based compensation expense	$	(3,409)	$	5,737

As of March 31, 2025, there was $26.0 million of unrecognized share-based compensation expense related to unvested awards granted which is expected to be recognized over a weighted-average period of 1.4 years.