Share-based Compensation

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

The Company has various stock compensation plans, which are more fully described in Part II, Item 8 "Financial Statements and Supplementary Data - Note 9 to the Consolidated Financial Statements - Share-based Compensation" in the 2021 Annual Report on Form 10-K. Under the 2021 Incentive Award Plan, the Company has the ability to grant options, stock appreciation rights, restricted stock, restricted stock units, performance stock units, dividend equivalents, or other stock or cash-based awards to employees, directors, or consultants.

During the nine months ended September 30, 2022, the Company granted 1,854,105 performance restricted stock units ("PRSU"), of which 631,579 were forfeited during the three months ended September 30, 2022 due to an executive departure. The PRSU awards function in the same manner as restricted stock units except that vesting terms are based on achievement of performance measures, such as the achievement of net revenue targets and obtaining certain FDA regulatory results. PRSUs are recognized as expense following a graded vesting schedule with their performance re-assessed and updated on a quarterly basis, or more frequently as changes in facts and circumstances warrant.

On January 1, 2022, the Company began offering an Employee Stock Purchase Plan ("ESPP"). The ESPP allows eligible employees to contribute a portion of their eligible earnings toward the semi-annual purchase of our shares of

common stock at a discounted price, subject to an annual maximum dollar amount. Employees can purchase stock at a 15% discount applied to the lower closing stock price on the first or last day of the six-month purchase period.

Option awards are generally granted with an exercise price equal to the fair value of the Company’s common stock at the date of grant. Options, RSU, and PRSU awards generally vest over a period of four years.

Share-based Compensation Expense

Total share-based compensation was recognized as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
General and administrative	$	880	$	347	$	4,289	$	1095
Sales and marketing	238		127		1,650		489
Research and development	722		223		2,476		726
Total share-based compensation	$	1,840	$	697	$	8,415	$	2,310

During the three and nine months ended September 30, 2022, the Company capitalized $3 and $36, respectively, of share-based compensation attributable to internally developed software.

As of September 30, 2022, the Company had $2,590 of unrecognized share-based compensation costs related to non-vested options that will be recognized over a weighted-average period of 2.2 years, $19,289 of unrecognized share-based compensation costs related to unvested RSUs that will be recognized over a weighted-average period of 2.5 years, and $1,559 of unrecognized share-based compensation costs related to unvested PRSUs that will be recognized over a weighted-average period of 2.4 years.