Equity-Based Compensation

6 Months Ended

Jun. 30, 2020

Equity-Based Compensation

Equity-Based Compensation

6. Equity-Based Compensation

The Company recorded equity-based compensation expense related to all equity-based awards for employees and non-employees, which was allocated as follows in the consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2020 and 2019 (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Research and development expense	$	887	$	638	$	1,702	$	1,217
General and administrative expense		1,508		1,176		2,907		2,215
	$	2,395	$	1,814	$	4,609	$	3,432

Restricted Stock

The following table summarizes the Company’s restricted common stock activity for the current year:

		Weighted
		Average Fair
		Value per Share
	Number of Shares	at Issuance
Restricted common stock as of December 31, 2019	302,360	$	5.77
Granted	—	$	—
Vested	(133,704)	$	5.77
Forfeited	(42,010)	$	5.77
Restricted common stock as of June 30, 2020	126,646	$	5.77

As of June 30, 2020, the Company had unrecognized equity-based compensation expense of $0.6 million related to restricted stock issued to employees and directors, which is expected to be recognized over a period of 1.0 years.

Stock Options

The following table summarizes the Company’s stock option activity for the current year:

				Weighted
		Weighted		Average
	Number of	Average		Remaining	Aggregate
	Shares	Exercise Price		Contractual Term	Intrinsic Value
				(in years)	(in thousands)
Outstanding as of December 31, 2019	2,401,382	$	12.63	8.36	$	6,523
Granted	1,466,051	$	14.39
Exercised	(123,775)	$	8.10
Cancelled	(251,987)	$	13.22
Outstanding as of June 30, 2020	3,491,671	$	13.49	8.62	$	18,205
Options exercisable as of June 30, 2020	1,064,356	$	12.77	7.64	$	6,629

Using the Black-Scholes option pricing model, the weighted average fair value of options granted during the six months ended June 30, 2020 was $10.10.

The following weighted average assumptions were used in determining the fair value of options granted in the six months ended June 30, 2020:

Risk-free interest rate	1.24	%
Expected dividend yield	0.0	%
Expected term (years to liquidity)	6.19
Expected volatility	81.86	%

As of June 30, 2020, the Company has unrecognized equity-based compensation expense related to its employee stock options of $22.3 million which the Company expects to recognize over the remaining weighted average vesting period of 2.7 years.