Stock-based compensation

9 Months Ended

Sep. 30, 2023

Stock-based compensation

Stock-based compensation

9. Stock-based compensation

Stock-Based Compensation Expense

Total compensation cost recognized for all stock-based compensation awards in the condensed consolidated statements of operations and comprehensive (loss) income was as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
	(in thousands)
Research and development	$	919	$	588	$	2,472	$	2,170
General and administrative		1,959		1,601		5,636		4,828
Total stock-based compensation expense	$	2,878	$	2,189	$	8,108	$	6,998

Stock-based compensation expense by type of award included within the condensed consolidated statements of operations and comprehensive (loss) income was as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
	(in thousands)
Stock options	$	2,021	$	1,357	$	5,587	$	4,452
Restricted stock awards and units		774		748		2,339		2,382
Employee stock purchase plan awards		83		84		182		164
Total stock-based compensation expense	$	2,878	$	2,189	$	8,108	$	6,998

Restricted Stock Units

A summary of the status of and changes in unvested restricted stock unit activity under the Company’s equity award plans for the nine months ended September 30, 2023 was as follows:

		Weighted
		Average
		Grant Date
		Fair Value
	Units	Per Unit
Unvested restricted stock units as of December 31, 2022	1,112,563	$	5.27
Granted	725,550	$	7.52
Vested	(459,745)	$	5.68
Forfeited	(65,641)	$	4.65
Unvested restricted stock units as of September 30, 2023	1,312,727	$	6.40

Stock-based compensation of restricted stock units is based on the fair value of the Company’s common stock on the date of grant and is recognized over the vesting period. Restricted stock units granted by the Company typically vest in equal amounts, annually over three years. All of the restricted stock units granted in the nine months ended September 30, 2023 vest in equal amounts, annually over three years. The stock-based compensation expense related to restricted stock units was $0.8 million and $2.3 million for the three and nine months ended September 30, 2023, respectively. The stock-based compensation expense related to restricted stock units was $0.7 million and $2.4 million for the three and nine months ended September 30, 2022, respectively.

As of September 30, 2023, the Company had unrecognized stock-based compensation expense related to its unvested restricted stock units of $6.0 million, which is expected to be recognized over the remaining average vesting period of 2.3 years.

Stock Options

The following is a summary of stock option activity for the nine months ended September 30, 2023:

		Weighted		Remaining	Aggregate
		Average		Contractual	Intrinsic
		Exercise		Life	Value
	Shares	Price		(in years)	(in thousands)
Outstanding at December 31, 2022	6,199,571	$	8.12	7.9	$	6,095
Granted	2,250,400	$	8.64
Exercised	(377,593)	$	5.02
Cancelled or forfeited	(326,785)	$	9.60
Outstanding at September 30, 2023	7,745,593	$	8.42	7.9	$	9,348
Exercisable at September 30, 2023	3,527,536	$	9.66	6.7	$	4,355

As of September 30, 2023, the Company had unrecognized stock-based compensation expense related to its unvested stock options of $19.1 million which is expected to be recognized over the remaining weighted-average vesting period of 2.9 years.