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Stock-based Compensation
 9 Months Ended
Sep. 30, 2020
Equity [Abstract]  
Stock-based Compensation Stock-based Compensation
Stock-based compensation expense included in the Company’s unaudited condensed consolidated statements of comprehensive loss is allocated as follows (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2020201920202019
Research and development$882 $477 $2,493 $1,170 
General and administrative1,448 1,267 4,726 2,688 
Sales and marketing1,445 1,038 4,294 1,941 
$3,775 $2,782 $11,513 $5,799 
Stock Option Activity
The option awards issued under the 2014 Stock Option Plan (the 2014 Plan) and the 2018 Omnibus Incentive Plan (the 2018 Plan) were measured based on fair value. The Company’s fair value calculations were made using the Black-Scholes option pricing model with the following assumptions:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2020201920202019
Expected term (in years)—
5.50 - 6.08
6.05
5.07 - 6.16
Stock volatility
—
71.22% - 73.76%
72.01%
70.02% - 73.76%
Risk-free interest rate
—
1.42% - 1.87%
1.37%
1.42% - 2.56%
Dividend rate
—
—
—
—
The Company used the simplified method of determining the expected term of stock options. The expected stock price volatility assumption was determined by examining the historical volatilities for industry peers, as the Company did not have sufficient trading history for the Company’s common stock. The Company will continue to analyze the historical stock price volatility and expected term assumption as more historical data for the Company’s common stock becomes available. The risk-free interest rate assumption is based on the U.S. Treasury instruments, whose term was consistent with the expected term of the Company’s stock options. The expected dividend assumption is based on the Company’s history and expectation of dividend payouts. The assumptions regarding the expected term of the options and the expected volatility of the stock price are subjective, and these assumptions have a significant effect on the estimated fair value amounts. There were no stock option grants for the three months ended September 30, 2020. The weighted-average grant date fair value of options granted was $18.56 for the nine months ended September 30, 2020. The weighted-average grant date fair value of options granted was $26.23 and $15.75 for the three and nine months ended September 30, 2019, respectively.
As of September 30, 2020 and December 31, 2019, there was $13.5 million and $19.5 million, respectively, of total unrecognized compensation cost related to unvested stock options that is expected to be recognized over a weighted-average period of approximately 2.6 years and 3.2 years, respectively.
The following table summarizes stock option activity for the nine months ended September 30, 2020 under the 2014 and 2018 Plans (in thousands, except share and per share data):
Number of OptionsWeighted-Average Exercise Price Per ShareAggregate Intrinsic Value
Outstanding at December 31, 20192,847,101 $13.22 
Options granted5,000 29.03 
Options exercised(665,369)3.98 $21,467 (1)
Options forfeited(62,766)25.46 
Outstanding at September 30, 20202,123,966 $15.79 $74,867 (2)
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(1)    Represents the total difference between the Company’s closing stock price at the time of exercise and the stock option exercise price, multiplied by the number of options exercised.
(2)    Represents the total difference between the Company’s closing stock price on the last trading day of the third quarter of 2020 and the stock option exercise price, multiplied by the number of in-the-money options as of September 30, 2020. The amount of intrinsic value will change based on the fair market value of the Company’s stock.
The weighted-average remaining contractual term of options outstanding and exercisable is 7.8 years and 7.6 years at September 30, 2020 and December 31, 2019, respectively.
Restricted Shares Awards Activity
As of September 30, 2020 and December 31, 2019, there was $19.8 million and $11.8 million, respectively, of total unrecognized compensation cost related to unvested restricted shares awards that is expected to be recognized over a weighted-average period of approximately 3.2 years and 3.3 years, respectively.
The following table summarizes restricted shares awards activity for the nine months ended September 30, 2020:
Number of Restricted Shares AwardsWeighted-Average Fair Value Per Share at Grant Date
Outstanding at December 31, 2019586,166 $23.59 
Restricted shares awards granted371,250 34.22 
Restricted shares awards vested(137,609)23.23 
Restricted shares awards forfeited(40,312)25.33 
Outstanding at September 30, 2020779,495 $28.63 
Restricted Stock Units Activity
As of September 30, 2020 and December 31, 2019, there was $1.9 million and $4.3 million, respectively, of total unrecognized compensation cost related to unvested restricted stock units that is expected to be recognized over a weighted-average period of approximately 0.9 years and 1.5 years, respectively.
The following table summarizes restricted stock units activity for the nine months ended September 30, 2020:
Number of Restricted Stock UnitsWeighted-Average Fair Value Per Share at Grant Date
Outstanding at December 31, 2019248,104 $21.48 
Restricted stock units granted8,000 29.03 
Restricted stock units vested(46,336)14.19 
Outstanding at September 30, 2020209,768 $23.37 
Warrant Exercise
On July 16, 2019, the Company issued and sold 32,529 shares of its common stock to SVB Financial Group (SVB) in connection with the exercise by SVB of its right to purchase 40,000 shares of common stock under that certain warrant, dated as of February 6, 2018. The exercise price per share was $7.50, and was paid by SVB via forfeiture of shares pursuant to a cashless exercise provision in the warrant. 
On May 29, 2019, the Company issued and sold 31,071 shares of its common stock to Life Science Loans II, LLC (Life Science Loans) in connection with the exercise by Life Science Loans of its right to purchase 40,000 shares of common stock under that certain warrant, dated as of February 6, 2018. The exercise price per share was $7.50, and was paid by Life Science Loans via forfeiture of shares pursuant to a cashless exercise provision in the warrant.
No warrants were outstanding at September 30, 2020.