XML 28 R17.htm IDEA: XBRL DOCUMENT v3.20.2
Stock-Based Compensation
 6 Months Ended
Sep. 30, 2020
Share-based Payment Arrangement [Abstract]  
Share-Based Compensation Stock-Based Compensation
2019 Equity Incentive Plan
In December 2019, in connection with the Business Combination, the Company’s stockholders approved the 2019 Equity Incentive Plan (the “2019 Plan”) and reserved 5,500,000 shares of common stock for issuance thereunder. The 2019 Plan became effective immediately upon the closing of the Business Combination. The maximum number of shares of common stock that may be issued pursuant to the exercise of incentive options under the 2019 Plan is 16,500,000. On April 1, 2020, the number of common shares reserved for issuance increased automatically by 4.0% of the total number of shares of common stock outstanding on the last day of the preceding month (i.e. 2,186,215 shares of common stock) in accordance with the evergreen provision of the 2019 incentive plan. As of September 30, 2020, options to purchase 2,457,458 shares of common stock and 127,200 restricted stock units (“RSUs”) have been granted under the 2019 Plan and 5,101,557 shares remained available for future grant.

2018 Equity Incentive Plan
Pursuant to the Share Exchange Agreement, upon the closing of the Business Combination, all vested or unvested outstanding options to purchase common shares of ISL under its 2018 Equity Incentive Plan (the “2018 Plan”) were automatically assumed by the Company and converted into options to purchase 4,408,287 shares of the Company’s common stock with no changes to the terms of the awards. As of the effective date of the 2019 Plan, no further stock awards have been or will be made under 2018 Plan. As of September 30, 2020, 3,377,224 stock options were outstanding under the 2018 Plan.
Stock Option Activity
A summary of the stock option activity under the Company’s equity incentive plans is as follows:
 Options Outstanding
 Number of
options		Weighted-
Average
Exercise Price		Remaining
Contractual
Term (Years)		Aggregate
Intrinsic Value
(in thousands)
Balance - March 31, 20203,873,888 $8.33 9.37$28,029 
Granted2,290,978 23.51 
Exercised(42,213)4.31 
Forfeited(61,738)14.86 
Canceled(226,233)7.86 
Balance - September 30, 20205,834,682 $14.27 9.21$122,505 
Exercisable - September 30, 2020945,851 $8.08 8.74$25,646 
The aggregate intrinsic value is calculated as the difference between the exercise price of all outstanding and exercisable stock options and the fair value of the Company’s common stock as of September 30, 2020. The options granted during the three and six months ended September 30, 2020 had a weighted-average fair value of $23.26 and $16.05 per share, respectively, at the grant date. The options granted during the three and six months ended September 30, 2019 had a weighted-average fair value of $5.63 and $5.26 per share, respectively, at the grant date.
The Company estimated the fair value of each option on the date of grant using the Black-Scholes option pricing model applying the weighted-average assumptions in the following table:
 Three Months Ended September 30,Six Months Ended September 30,
 2020201920202019
Risk-free interest rate
0.30% - 0.40%
1.88% - 1.88%
0.30% - 0.44%
1.78% - 2.25%
Expected term, in years
5.81 - 6.11
6.05 - 6.11
5.56 - 6.11
5.75 - 6.11
Expected volatility
83.31% - 84.05%
75.67% - 75.73%
78.16% - 84.05%
74.69% - 75.73%
Expected dividend yield—%—%—%—%
Restricted Stock Unit Awards
A summary of RSUs activity under the Company’s equity incentive plans is as follows:
Number of RSUsWeighted- Average Grant Date Fair Value
Unvested as of March 31, 2020— $— 
Issued127,200 19.01 
Unvested as of September 30, 2020127,200 $19.01 
Stock-based Compensation Expense
For the three and six months ended September 30, 2020 and 2019, stock-based compensation expense under the Company’s equity incentive plans was as follows (in thousands):
 Three Months Ended September 30,Six Months Ended September 30,
 2020201920202019
Research and development expenses$951 $2,306 $1,370 $2,369 
General and administrative expenses2,356 813 5,855 1,287 
Total stock-based compensation$3,307 $3,119 $7,225 $3,656 
As of September 30, 2020, total unrecognized compensation expense related to non-vested stock options and RSUs was $47.1 million and $2.0 million, respectively, which is expected to be recognized over the remaining weighted-average service period of 2.9 years and 1.6 years, respectively.
Stock-based Compensation Allocated to the Company by RSL
In relation to the RSL common share awards and options issued by RSL to employees of RSL, RSI, RSG and the Company, stock-based compensation expense of $0.1 million was recorded for the three and six months ended September 30, 2020, respectively, and $0.1 million for the three and six months ended September 30, 2019, respectively in the accompanying unaudited condensed consolidated statements of operations.