Equity-Based Compensation

9 Months Ended

Sep. 30, 2022

Equity-Based Compensation

Equity-Based Compensation

7. Equity-Based Compensation

The Company recorded equity-based compensation expense related to all equity-based awards, which was allocated as follows in the consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2022 and 2021 (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Research and development expense	$	4,144	$	2,482	$	10,667	$	7,440
General and administrative expense		3,773		3,672		10,869		9,613
	$	7,917	$	6,154	$	21,536	$	17,053

Equity-based compensation during the three and nine months ended September 30, 2022 includes $1.2 million and $1.3 million, respectively, related to the modification of certain equity awards.

The following table summarizes the Company’s unrecognized equity-based compensation expense as of September 30, 2022:

	As of September 30, 2022
		Unrecognized Expense (in thousands)	Weighted Average Remaining Period of Recognition (years)
Restricted Stock Units		19,146	2.8
Stock Options		40,638	2.7
	$	59,784

Restricted Stock Units

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

		Weighted
		Average Grant
	Number of Units	Date Fair Value
Restricted stock units as of December 31, 2021	314,901	$	47.38
Granted	1,724,256	$	11.00
Vested	(81,913)	$	46.48
Forfeited	(249,509)	$	22.08
Restricted stock units as of September 30, 2022	1,707,735	$	14.39

The total fair value of restricted stock units vested during the nine months ended September 30, 2022 was $1.2 million.

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, 2021	3,743,400	$	25.55	8.06	$	26,272
Granted	3,157,932	$	10.08
Exercised	(43,312)	$	11.25
Cancelled	(715,347)	$	25.60
Outstanding as of September 30, 2022	6,142,673	$	17.69	8.26	$	2,591
Options exercisable as of September 30, 2022	2,247,725	$	20.54	6.53	$	427

Using the Black-Scholes option pricing model, the weighted average fair value of options granted during the nine months ended September 30, 2022 was $7.42.

The following weighted average assumptions were used in determining the fair value of options granted in the nine months ended September 30, 2022 and 2021:

	Nine Months Ended
	September 30,
	2022		2021
Risk-free interest rate	2.99	%	0.77	%
Expected dividend yield	0.0	%	0.0	%
Expected term (years to liquidity)	5.97		6.21
Expected volatility	88.47	%	87.79	%