0001558370-23-012936.txt : 20230802 0001558370-23-012936.hdr.sgml : 20230802 20230802163031 ACCESSION NUMBER: 0001558370-23-012936 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 63 CONFORMED PERIOD OF REPORT: 20230630 FILED AS OF DATE: 20230802 DATE AS OF CHANGE: 20230802 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Editas Medicine, Inc. CENTRAL INDEX KEY: 0001650664 STANDARD INDUSTRIAL CLASSIFICATION: BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836] IRS NUMBER: 464097528 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-37687 FILM NUMBER: 231136194 BUSINESS ADDRESS: STREET 1: 11 HURLEY ST. CITY: CAMBRIDGE STATE: MA ZIP: 02141 BUSINESS PHONE: 617-401-9000 MAIL ADDRESS: STREET 1: 11 HURLEY ST. CITY: CAMBRIDGE STATE: MA ZIP: 02141 10-Q 1 edit-20230630x10q.htm 10-Q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ________

Commission File Number 001-37687

EDITAS MEDICINE, INC.

(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction of
incorporation or organization)

46-4097528
(I.R.S. Employer
Identification No.)

11 Hurley Street
Cambridge, Massachusetts
(Address of principal executive offices)

02141
(Zip Code)

(617401-9000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.0001 par value per share

EDIT

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer 

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No 

The number of shares of Common Stock outstanding as of July 28, 2023 was 81,632,619.

Editas Medicine, Inc.

TABLE OF CONTENTS

    

    

Page

PART I. FINANCIAL INFORMATION

3

Item 1.

Financial Statements (unaudited)

3

Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022

3

Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2023 and 2022

4

Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2023 and 2022

5

Condensed Consolidated Statements of Stockholders’ Equity for the three and six months ended June 30, 2023 and 2022

6

Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022

7

Notes to Condensed Consolidated Financial Statements

8

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

14

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

26

Item 4.

Controls and Procedures

26

PART II. OTHER INFORMATION

28

Item 1.

Legal Proceedings

28

Item 1A.

Risk Factors

28

Item 5.

Other Information

28

Item 6.

Exhibits

29

Signatures

30

2

PART I. FINANCIAL INFORMATION

Item 1.    Financial Statements.

Editas Medicine, Inc.

Condensed Consolidated Balance Sheets

(unaudited)

(amounts in thousands, except share and per share data)

    

June 30, 

    

December 31, 

2023

2022

ASSETS

Current assets:

Cash and cash equivalents

$

220,817

$

141,522

Marketable securities

211,151

202,752

Accounts receivable

 

2,286

 

5,145

Prepaid expenses and other current assets

 

6,724

 

7,335

Total current assets

 

440,978

 

356,754

Marketable securities

48,065

93,097

Property and equipment, net

 

12,846

 

15,569

Right-of-use assets

34,811

43,648

Restricted cash and other non-current assets

 

5,253

 

5,253

Total assets

$

541,953

$

514,321

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

8,066

$

9,511

Accrued expenses

 

27,896

 

31,296

Deferred revenue, current

8,221

8,221

Operating lease liabilities

10,330

11,082

Total current liabilities

 

54,513

 

60,110

Operating lease liabilities, net of current portion

26,856

32,864

Deferred revenue, net of current portion

60,667

60,667

Total liabilities

142,036

153,641

Stockholders’ equity

Preferred stock, $0.0001 par value per share: 5,000,000 shares authorized; no shares issued or outstanding

 

 

Common stock, $0.0001 par value per share: 195,000,000 shares authorized; 81,616,909 and 68,847,382 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively

 

8

 

7

Additional paid-in capital

 

1,569,651

 

1,442,405

Accumulated other comprehensive loss

(2,285)

(3,601)

Accumulated deficit

 

(1,167,457)

 

(1,078,131)

Total stockholders’ equity

399,917

360,680

Total liabilities and stockholders’ equity

$

541,953

$

514,321

The accompanying notes are an integral part of the condensed consolidated financial statements.

3

Editas Medicine, Inc.

Condensed Consolidated Statements of Operations

(unaudited)

(amounts in thousands, except share and per share data)

Three Months Ended

Six Months Ended

June 30, 

June 30, 

    

2023

    

2022

2023

    

2022

Collaboration and other research and development revenues

$

2,887

$

6,362

$

12,738

$

13,134

Operating expenses:

Research and development

 

29,779

 

43,659

 

67,583

 

81,635

General and administrative

 

17,202

 

16,937

 

40,211

 

36,483

Total operating expenses

 

46,981

 

60,596

 

107,794

118,118

Operating loss

 

(44,094)

 

(54,234)

 

(95,056)

 

(104,984)

Other income, net:

Other (expense) income, net

 

(7)

 

235

 

(1,590)

 

1

Interest income, net

3,811

546

7,320

1,015

Total other income, net

 

3,804

 

781

 

5,730

 

1,016

Net loss

$

(40,290)

$

(53,453)

$

(89,326)

$

(103,968)

Net loss per share, basic and diluted

$

(0.56)

$

(0.78)

$

(1.27)

$

(1.52)

Weighted-average common shares outstanding, basic and diluted

71,376,678

68,640,858

 

70,157,204

 

68,563,348

The accompanying notes are an integral part of the condensed consolidated financial statements.

4

Editas Medicine, Inc.

Condensed Consolidated Statements of Comprehensive Loss

(unaudited)

(amounts in thousands)

Three Months Ended

Six Months Ended

June 30, 

June 30, 

2023

2022

2023

2022

Net loss

$

(40,290)

$

(53,453)

$

(89,326)

$

(103,968)

Other comprehensive loss:

Unrealized (loss) gain on marketable debt securities

 

(6)

 

(878)

 

1,316

 

(2,894)

Comprehensive loss

$

(40,296)

$

(54,331)

$

(88,010)

$

(106,862)

The accompanying notes are an integral part of the condensed consolidated financial statements.

5

Editas Medicine, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(unaudited)

(amounts in thousands, except share data)

    

    

Accumulated

    

    

Additional

Other

Other

Total

Common Stock

Paid-In

Comprehensive

Accumulated

Stockholders’

Shares

    

Amount

Capital

(Loss) Gain

Deficit

Equity

Balance at December 31, 2022

68,847,382

$

7

$

1,442,405

$

(3,601)

$

(1,078,131)

$

360,680

Exercise of stock options

Vesting of restricted common stock awards

146,209

Stock-based compensation expense

4,507

4,507

Unrealized gain on marketable debt securities

1,322

1,322

Net loss

(49,036)

(49,036)

Balance at March 31, 2023

68,993,591

$

7

$

1,446,912

$

(2,279)

$

(1,127,167)

$

317,473

Issuance of common stock from public offering, net commissions, underwriting discounts and offering costs

12,500,000

1

117,078

117,079

Exercise of stock options

3,122

11

11

Stock-based compensation expense

5,215

5,215

Vesting of restricted common stock awards

64,492

Issuance of common stock under employee stock purchase plan

55,704

435

435

Unrealized loss on marketable debt securities

(6)

(6)

Net loss

(40,290)

(40,290)

Balance at June 30, 2023

81,616,909

$

8

$

1,569,651

$

(2,285)

$

(1,167,457)

$

399,917

    

    

    

    

    

    

Accumulated

    

    

Additional

Other

Other

Total

Common Stock

Paid-In

Comprehensive

Accumulated

Stockholders’

Shares

    

Amount

Capital

(Loss) Gain

Deficit

Equity

Balance at December 31, 2021

68,435,257

$

7

$

1,411,827

$

(493)

$

(857,699)

$

553,642

Exercise of stock options

12,573

218

218

Vesting of restricted common stock awards

154,834

Stock-based compensation expense

11,431

11,431

Unrealized loss on marketable debt securities

(2,016)

(2,016)

Net loss

(50,515)

(50,515)

Balance at March 31, 2022

68,602,664

$

7

$

1,423,476

$

(2,509)

$

(908,214)

$

512,760

Exercise of stock options

20

Vesting of restricted common stock awards

77,884

Stock-based compensation expense

6,618

6,618

Issuance of common stock under employee stock purchase plan

37,866

367

367

Unrealized loss on marketable debt securities

(878)

(878)

Net loss

(53,453)

(53,453)

Balance at June 30, 2022

68,718,434

$

7

$

1,430,461

$

(3,387)

$

(961,667)

$

465,414

The accompanying notes are an integral part of the condensed consolidated financial statements.

6

Editas Medicine, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

(amounts in thousands)

Six Months Ended

June 30, 

    

2023

    

2022

Cash flow from operating activities

Net loss

$

(89,326)

$

(103,968)

Adjustments to reconcile net loss to net cash used in operating activities:

Stock-based compensation expense

 

9,722

 

18,049

Depreciation

 

3,084

 

3,156

Loss on disposal of fixed assets

1,583

Other non-cash items, net

 

(1,473)

 

57

Changes in operating assets and liabilities:

 

 

Accounts receivable

2,859

(446)

Prepaid expenses and other current assets

611

(908)

Right-of-use assets

8,837

5,507

Other non-current assets

(719)

Accounts payable

(1,256)

1,252

Accrued expenses

(2,360)

402

Deferred revenue

 

 

(3,333)

Operating lease liabilities

 

(6,760)

 

(6,121)

Net cash used in operating activities

 

(74,479)

 

(87,072)

Cash flow from investing activities

Purchases of property and equipment

 

(3,173)

(2,880)

Proceeds from the sale of equipment

18

Purchases of marketable securities

(68,183)

(183,519)

Proceeds from maturities of marketable securities

107,605

238,750

Net cash provided by investing activities

 

36,249

 

52,369

Cash flow from financing activities

Proceeds from offering of common stock, net of issuance costs

117,079

Proceeds from exercise of stock options

 

11

 

218

Proceeds from issuance of common stock under employee stock purchase plan

 

435

367

Net cash provided by financing activities

 

117,525

585

Net increase (decrease) in cash, cash equivalents, and restricted cash

79,295

(34,118)

Cash, cash equivalents, and restricted cash, beginning of period

145,399

207,396

Cash, cash equivalents, and restricted cash, end of period

$

224,694

$

173,278

Supplemental disclosure of cash and non-cash activities:

Fixed asset additions included in accounts payable and accrued expenses

$

212

$

127

Offering expenses included in accounts payable and accrued expenses

230

Cash paid in connection with operating lease liabilities

5,738

7,089

Right-of-use assets obtained in exchange of operating lease obligations

1,069


The accompanying notes are an integral part of the condensed consolidated financial statements.

7

Editas Medicine, Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

1. Nature of Business

Editas Medicine, Inc. (the “Company”) is a clinical stage genome editing company dedicated to developing potentially transformative genomic medicines to treat a broad range of serious diseases. The Company was incorporated in the state of Delaware in September 2013. Its principal offices are in Cambridge, Massachusetts.

Since its inception, the Company has devoted substantially all of its efforts to business planning, research and development, recruiting management and technical staff, and raising capital. The Company has primarily financed its operations through various equity financings, payments received under a research collaboration with Juno Therapeutics, Inc., a wholly-owned subsidiary of the Bristol-Myers Squibb Company (“BMS”), and payments received under a strategic alliance and option agreement with Allergan Pharmaceuticals International Limited, which was terminated in August 2020.

The Company is subject to risks common to companies in the biotechnology industry, including but not limited to, risks of failure of preclinical studies and clinical trials, the need to obtain marketing approval for any drug product candidate that it may identify and develop, the need to successfully commercialize and gain market acceptance of its product candidates, dependence on key personnel, protection of proprietary technology, compliance with government regulations, development by competitors of technological innovations and ability to transition from pilot-scale manufacturing to large-scale production of products.

Liquidity

In June 2023, the Company completed a public offering in which it sold 12,500,000 shares of its common stock and received net proceeds of approximately $117.1 million after deducting underwriting discounts and commissions and other offering costs. In May 2021, the Company entered into a common stock sales agreement with Cowen and Company, LLC (“Cowen”), under which the Company from time to time can issue and sell shares of its common stock through Cowen in at-the-market offerings for aggregate gross sale proceeds of up to $300.0 million (the “ATM Facility”). As of June 30, 2023, the Company has not sold any shares of its common stock under the ATM Facility.

The Company has incurred annual net operating losses in every year since its inception. The Company expects that its existing cash, cash equivalents and marketable securities at June 30, 2023 will enable it to fund its operating expenses and capital expenditure requirements into the third quarter of 2025. The Company had an accumulated deficit of $1.2 billion at June 30, 2023, and will require substantial additional capital to fund its operations. The Company has never generated any product revenue. There can be no assurance that the Company will be able to obtain additional debt or equity financing or generate product revenue or revenues from collaborative partners, on terms acceptable to the Company, on a timely basis or at all. The failure of the Company to obtain sufficient funds on acceptable terms when needed could have a material adverse effect on the Company’s business, results of operations, and financial condition.

2. Summary of Significant Accounting Policies

Unaudited Interim Financial Information

The condensed consolidated financial statements of the Company included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) have been condensed or omitted from this report, as is permitted by such rules and regulations. Accordingly, these condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 (the “Annual Report”).

8

The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Editas Securities Corporation and Editas Medicine, LLC. All intercompany transactions and balances of the subsidiaries have been eliminated in consolidation. In the opinion of management, the information furnished reflects all adjustments, all of which are of a normal and recurring nature, necessary for a fair presentation of the results for the reported interim periods. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. The three months ended June 30, 2023 and 2022 are referred to as the second quarter of 2023 and 2022, respectively. The results of operations for interim periods are not necessarily indicative of results to be expected for the full year or any other interim period.

Summary of Significant Accounting Policies

The Company’s significant accounting policies are described in Note 2, “Summary of Significant Accounting Policies,” to the consolidated financial statements included in the Annual Report. There have been no material changes to the significant accounting policies previously disclosed in the Annual Report.

3. Cash Equivalents and Marketable Securities

Cash equivalents and marketable securities consisted of the following at June 30, 2023 (in thousands):

Allowance

Gross

Gross

Amortized

for Credit

Unrealized

Unrealized

Fair

June 30, 2023

Cost

Losses

Gains

Losses

Value

Cash equivalents and marketable securities:

Money market funds

$

220,817

$

$

$

$

220,817

Government agency securities

182,221

(1,829)

180,392

Corporate notes/bonds

49,454

(413)

49,041

Commercial paper

22,402

(32)

22,370

U.S. Treasuries

7,424

(11)

7,413

Total

$

482,318

$

$

$

(2,285)

$

480,033

Cash equivalents and marketable securities consisted of the following at December 31, 2022 (in thousands):

Allowance

Gross

Gross

Amortized

for Credit

Unrealized

Unrealized

Fair

December 31, 2022

Cost

Losses

Gains

Losses

Value

Cash equivalents and marketable securities:

Government agency securities

$

161,902

$

$

11

$

(2,556)

$

159,357

Money market funds

141,522

141,522

Corporate notes/bonds

57,575

2

(694)

56,883

U.S. Treasuries

50,019

3

(229)

49,793

Commercial paper

29,954

3

(141)

29,816

Total

$

440,972

$

$

19

$

(3,620)

$

437,371

As of June 30, 2023, the Company did not hold any marketable securities that had been in an unrealized loss position for more than twelve months. Furthermore, the Company has determined that there were no material changes in the credit risk of the debt securities. As of June 30, 2023, the Company holds 30 securities with an aggregate fair value of $48.1 million that had remaining maturities greater than one year.

There were no realized gains or losses on available-for-sale securities during the six months ended June 30, 2023 or 2022.

9

4. Fair Value Measurements

Assets measured at fair value on a recurring basis as of June 30, 2023 were as follows (in thousands):

    

    

Quoted Prices

    

Significant

    

in Active

Other

Significant

Markets for

Observable

Unobservable

June 30, 

Identical Assets

Inputs

Inputs

Financial Assets

2023

(Level 1)

(Level 2)

(Level 3)

Cash equivalents:

Money market funds

$

220,817

$

220,817

$

$

Marketable securities:

Government agency securities

180,392

180,392

Corporate notes/bonds

49,041

49,041

Commercial paper

22,370

22,370

U.S. Treasuries

7,413

7,413

Restricted cash and other non-current assets:

Money market funds

3,877

3,877

Total financial assets

$

483,910

$

232,107

$

251,803

$

Assets measured at fair value on a recurring basis as of December 31, 2022 were as follows (in thousands):

    

    

Quoted Prices

    

Significant

    

in Active

Other

Significant

Markets for

Observable

Unobservable

December 31, 

Identical Assets

Inputs

Inputs

Financial Assets

2022

(Level 1)

(Level 2)

(Level 3)

Cash equivalents:

Money market funds

$

141,522

$

141,522

$

$

Marketable securities:

Government agency securities

159,357

159,357

Corporate bonds

56,883

56,883

U.S. Treasuries

49,793

49,793

Commercial paper

29,816

29,816

Restricted cash and other non-current assets:

Money market funds

3,877

3,877

Total financial assets

$

441,248

$

195,192

$

246,056

$

5. Accrued Expenses

Accrued expenses consisted of the following (in thousands):

As of

June 30, 

December 31, 

    

2023

    

2022

External research and development expenses

$

17,976

$

16,452

Employee related expenses

6,412

10,140

Intellectual property and patent related fees

1,527

1,809

Professional service expenses

1,903

1,260

Other expenses

78

1,635

Total accrued expenses

$

27,896

$

31,296

10

6. Property and Equipment, net

Property and equipment, net consisted of the following (in thousands):

    

As of

June 30, 

December 31, 

    

2023

    

2022

Laboratory equipment

$

24,683

$

24,407

Leasehold improvements

9,648

9,761

Computer equipment

 

875

 

875

Construction-in-progress

653

1,573

Furniture and office equipment

264

264

Software

 

215

 

215

Total property and equipment

 

36,338

 

37,095

Less: accumulated depreciation

 

(23,492)

 

(21,526)

Property and equipment, net

$

12,846

$

15,569

7. Commitments and Contingencies

In the second quarter of 2023, we entered into a License and Service Agreement pursuant to which we will lease manufacturing space for our continued research and development activities. As of June 30, 2023, the lease has not commenced for accounting purposes and it is not expected to commence until the second quarter of 2024. The lease agreement provides for total remaining lease payments of $87.8 million over a 10-year lease term.

The Company is a party to a number of license agreements under which the Company licenses patents, patent applications and other intellectual property from third parties. As such, the Company is obligated to pay licensors for various costs including upfront licenses fees, annual license fees, certain licensor expense reimbursements, success payments, research funding payments, and milestones triggerable upon certain development, regulatory, and commercial events as well as royalties on future products. These contracts are generally cancellable, with notice, at the Company’s option and do not have significant cancellation penalties. The terms and conditions as well as the accounting analysis for the Company’s significant commitments and contingencies are described in Note 8, “Commitments and Contingencies” to the consolidated financial statements included in the Annual Report. There have been no material changes to the terms and conditions, or the accounting conclusions, previously disclosed in the Annual Report.

Licensor Expense Reimbursement

The Company is obligated to reimburse The Broad Institute, Inc. (“Broad”) and the President and Fellows of Harvard College (“Harvard”) for expenses incurred by each of them associated with the prosecution and maintenance of the patent rights that the Company licenses from them pursuant to the license agreement by and among the Company, Broad and Harvard, including the interference and opposition proceedings involving patents licensed to the Company under the license agreement, and other license agreements between the Company and Broad. As such, the Company anticipates that it has a substantial commitment in connection with these proceedings until such time as these proceedings have been resolved, but the amount of such commitment is not determinable. The Company incurred an aggregate of $1.6 million and $4.6 million in expense during the three and six months ended June 30, 2023, respectively, for such reimbursement. The Company incurred an aggregate of $1.8 million and $3.9 million in expense during the three and six months ended June 30, 2022, respectively, for such reimbursement.

8. Collaboration and Profit-Sharing Agreements

The Company has entered into multiple collaborations, out-licenses and strategic alliances with third parties that typically involve payments to or from the Company, including up-front payments, payments for research and development services, option payments, milestone payments and royalty payments to or from the Company. The terms and conditions as well as the accounting analysis for the Company’s significant collaborations, out-licenses and strategic alliances are described in Note 9, “Collaboration and Profit-Sharing Agreements” to the consolidated financial

11

statements included in the Annual Report. There have been no material changes to the terms and conditions, or the accounting conclusions, previously disclosed in the Annual Report.

Collaboration Revenue

As of June 30, 2023, the Company’s contract liabilities were primarily related to the Company’s collaboration with BMS. The following table presents changes in the Company’s accounts receivable and contract liabilities for the six months ended June 30, 2023 (in thousands):

For the six months ended June 30, 2023

Balance at December 31, 2022

Additions

Deductions

Balance at June 30, 2023

Accounts receivable

$

5,145

$

2,141

$

(5,000)

$

2,286

Contract liabilities:

Deferred revenue

$

68,888

$

$

$

68,888

During the three and six months ended June 30, 2023, the Company did not recognize any collaboration revenue that had been allocated to deferred revenue from BMS.

9. Stock-based Compensation

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

Three Months Ended

Six Months Ended

June 30, 

June 30, 

2023

2022

2023

2022

Research and development

$

2,525

$

3,064

$

4,611

$

6,758

General and administrative

 

2,690

 

3,554

 

5,111

 

11,291

Total stock-based compensation expense

$

5,215

$

6,618

$

9,722

$

18,049

Restricted Stock Unit Awards

The following is a summary of restricted stock unit awards activity for the six months ended June 30, 2023:

    

    

Weighted

Average

Grant Date

Fair Value

Shares

Per Share

Unvested restricted stock unit awards as of December 31, 2022

 

1,499,070

$

18.70

Issued

 

1,071,802

$

8.79

Vested

 

(210,701)

$

19.70

Forfeited

(277,083)

$

20.98

Unvested restricted stock unit awards as of June 30, 2023

 

2,083,088

$

13.20

The restricted stock units issued in the six months ended June 30, 2023 include 331,000 units granted to certain employees that contain performance-based vesting provisions. The Company recognizes the fair value of the performance-based units through the expected achievement date if the performance-based vesting provisions are deemed probable.

As of June 30, 2023, total unrecognized compensation expense related to unvested restricted stock unit awards was $14.7 million, which the Company expects to recognize over a remaining weighted-average period of 2.67 years.

12

Stock Options

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

    

    

Weighted Average