Members’ Equity (Tables)

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Schedule of Share-based Compensation Expense

Total share-based compensation expense related to share based awards was comprised of the following (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Research and development expense	$	3,697	$	2,180	$	10,746	$	4,606
General and administrative expense	3,959		5,069		16,520		10,653
Total share-based compensation expense	$	7,656	$	7,249	$	27,266	$	15,259

Share-based compensation expense by type of share-based award (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Profit Interest Award Units	$	—	$	—	$	—	$	329
Stock Options	5,596		2,212		14,267		3,814
Employee Stock Purchase Plan	103		—		213		—
RSAs and RSUs	1,957		5,037		12,786		11,116
	$	7,656	$	7,249	$	27,266	$	15,259

Schedule of Valuation Assumptions

The fair value of the profits interest awards is estimated using an option pricing model with the following assumptions:

	Nine Months Ended September 30,
	2020
Members’ equity value (in thousands)	$	271,207
Threshold amounts (in thousands)	$	309,824
Risk free interest rate	1.5		%
Volatility	75.0		%
Time to liquidity (in years)	1.1
Lack of marketability discount	26.5		%
Grant date fair value	$	3.06

The fair value of the stock options granted during the nine months ended September 30, 2021 and September 30, 2020 was determined with the following assumptions:

	September 30, 2021		September 30, 2020
Expected volatility	73.9% - 76.6%		76.6% - 78.2%
Average expected term (in years)	5.2 - 6.2		5.7 - 6.0
Risk-free interest rate	0.5% - 1.1%		0.4% - 0.5%
Expected dividend yield	—	%	—	%

Schedule of Valuation Assumptions, ESPP

The weighted average assumptions used to estimate the fair value of stock purchase rights under the employee stock purchase plan (“ESPP”) are as follows:

	Ended September 30,
	2021		2020
ESPP
Volatility	64	%	—
Expected term (years)	0.5		—
Risk free rate	—	%	—
Expected dividend yield	—		—

Share-based Compensation Expense by Type of Share-based Award

Total unrecognized estimated compensation cost by type of award and the weighted average requisite service period over which such expense is expected to be recognized (in thousands, unless otherwise noted):

	September 30, 2021
	Unrecognized Expense		Remaining Weighted-Average Recognition Period (years)
Stock options	$	65,008	3.05
RSAs	$	1,472	1.84
RSUs	$	7,793	2.29
ESPP	$	—	0