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STOCK-BASED COMPENSATION
 12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
2017 Equity Incentive Plan
The Company’s 2017 Employee, Director and Consultant Equity Incentive Plan, as amended (the “2017 Plan”), provided for the Company to grant qualified incentive options, nonqualified options, stock grants and other stock-based awards to employees and non-employees to purchase the Company’s common stock. Upon the effectiveness of the 2020 Plan (as defined below), no further issuances were made under the 2017 Plan.
2020 Stock Option and Incentive Plan
The 2020 Stock Option and Incentive Plan (the “2020 Plan”) was approved by our board of directors on December 5, 2019, and the Company’s stockholders on January 14, 2020 and became effective on the date immediately prior to the date on which the registration statement for the Company’s IPO was declared effective. The 2020 Plan provides for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock units, restricted stock awards, unrestricted stock awards, cash-based awards and dividend equivalent rights to the Company’s officers, employees, directors and consultants. The number of shares initially reserved for issuance under the 2020 Plan was 6,665,891, which shall be cumulatively increased on January 1, 2021 and each January 1 thereafter by 4% of the number of shares of the Company’s common stock outstanding on the immediately preceding December 31 or such lesser number of shares determined by the Company’s board of directors or compensation, nomination, and corporate governance committee of the board of directors. As of December 31, 2021, 5,211,827 shares remained available for issuance under the 2020 Plan. The number of authorized shares reserved for issuance under the 2020 Plan was increased by 1,449,384 shares effective as of January 1, 2022.
2020 Employee Stock Purchase Plan
The 2020 Employee Stock Purchase Plan (the “2020 ESPP”) was approved by the Company’s board of directors on December 5, 2019, and our stockholders on January 14, 2020, and became effective on the date immediately prior to the date on which the registration statement for the Company’s IPO was declared effective. A total of 326,364 shares of common stock were initially reserved for issuance under this plan, which shall be cumulatively increased on January 1, 2021 and each January 1 thereafter by 1% of the number of shares of the Company’s common stock outstanding on the immediately preceding December 31 or such lesser number of shares determined by the Company’s board of directors or compensation, nomination and corporate governance committee of the board of directors. As of December 31, 2021, 646,566 shares remained available for issuance under the 2020 Plan. The number of authorized shares reserved for issuance under the 2020 Plan was increased by 326,364 shares effective as of January 1, 2022.
Option valuation
The assumptions that the Company used to determine the grant-date fair value of options granted were as follows, presented on a weighted-average basis:

December 31,

2021

2020

Risk-free interest rate0.93 %

0.91 %

Expected term (in years)5.6

6.1

Expected volatility76.0 %

63.8 %

Expected dividend yield0 %

0 %


Options
The following table summarizes the stock option activity under the Company’s equity awards plans:

Options

Weighted
Average
Exercise
Price

Weighted
Average
Remaining
Life
(in Years)

Intrinsic
Value
(in thousands)
Outstanding December 31, 20203,752,744 

$15.71 

9.0

$62,842 
Granted1,996,644 

$21.61 


Exercised(110,621)$6.02 
Cancelled or forfeited(734,928)$22.24 
Outstanding December 31, 20214,903,839 

$17.38 

7.6

$847 
Options vested or expected to vest at December 31, 20214,903,839 $17.38 7.6$847 
Options exercisable at December 31, 20211,791,964 $14.27 6.4$583 

The aggregate intrinsic value of options is calculated as the difference between the exercise price of the options and the fair value of the Company’s common stock for those options that had exercise prices lower than the fair value of the Company’s common stock.
The weighted-average grant-date fair value per share of options granted during the years ended December 31, 2021 and 2020 was $12.93 and $15.18, respectively.
The total fair value of options vested during the years ended December 31, 2021 and 2020 was $11,438 and $4,198, respectively.
Restricted stock
Under terms of the restricted stock agreements covering the common stock, shares of restricted common stock are subject to a vesting schedule. The majority of restricted stock vests over a three-year period during which time all unvested stock will immediately be forfeited to the Company if the relationship between the recipient and the Company ceases. Subject to the continued employment (or other engagement of the recipient by the Company as described in the restricted stock agreements), all shares of restricted common stock become fully vested within three years of the vesting commencement date.
The following table summarizes restricted stock activity since January 1, 2020:

Number of
shares
Weighted
average
grant date
fair value
Unvested restricted common stock as of January 1, 2020— $— 
Granted61,000 $29.65 
Vested(6,664)$30.00 
Unvested restricted common stock as of December 31, 202054,336 $29.68 
Granted10,000 $28.69 
Vested(27,002)$26.46 
Cancelled or forfeited(6,667)$1.21 
Unvested restricted common stock as of December 31, 202130,667 $29.53 

The aggregate fair value of restricted stock that vested during the years ended December 31, 2021 and 2020 was $714 and $200, respectively.
Stock-based compensation expense
The Company recorded stock-based compensation expense in the following award type categories included within its consolidated statements of operations and comprehensive loss:
December 31,

20212020
Stock options$12,964 $7,344 
Restricted stock units812 404 
Employee Stock Purchase Plan and Other261 17 

$14,037 $7,765 
For the years ended December 31, 2021 and 2020, the Company issued 12,456 and 505 shares, respectively, of common stock out of our 2020 Plan under our policy where non-employee directors may elect to receive their compensation in the form of common stock in lieu of cash.
The Company recorded stock-based compensation expense related to stock options and restricted stock units in the following expense categories of its consolidated statements of operations and comprehensive loss:
December 31,

2021

2020
Research and development$6,324 

$3,607 
General and administrative7,713 

4,158 

$14,037 

$7,765 

As of December 31, 2021, total unrecognized compensation cost related to the unvested stock options was $31,192, which is expected to be recognized over a weighted average period of 2.5 years.
As of December 31, 2021, total unrecognized compensation cost related to the unvested restricted stock units was $636, which is expected to be recognized over a weighted average period of 1.4 years.