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Employee Equity-Based Compensation
 6 Months Ended
Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Employee Equity-Based Compensation
NOTE 12. EMPLOYEE EQUITY-BASED COMPENSATION

The following table summarizes option activity under the Company's equity-based compensation plans for the six months ended June 30, 2022:

Number of SharesWeighted Average Exercise Price per Share
Options outstanding January 1, 20227,192,540 $13.89 
Granted140,000 3.05 
Forfeited(128,670)13.02 
Exercised(6,105)1.04 
Expired(1,158,808)10.05 
Options outstanding June 30, 20226,038,957 $14.41 

The table below summarizes the resulting weighted average inputs used to calculate the estimated fair value of options awarded for the three months ended June 30, 2022 and 2021:

Three Months Ended June 30,
20222021
Expected term (in years)0.05.79
Volatility— %65 %
Expected dividends— — 
Risk free interest rates— %1.10 %
Weighted average fair value$— $4.09 

No stock options were granted during the three months ended June 30, 2022, resulting in no summarized data for the period.

The following table shows summary information for outstanding options and options that are exercisable (vested) as of June 30, 2022:

Options
Outstanding		Options
Exercisable
Number of options6,038,957 4,644,828 
Weighted average remaining contractual term (in years)5.715.18
Weighted average exercise price$14.41 $15.04 
Weighted average fair value$9.00 $9.31 
Aggregate intrinsic value (in thousands)$— $— 
The following table summarizes RSU and restricted stock award activity for the six months ended June 30, 2022:

Number of SharesWeighted Average Grant Date Fair Value per Share
Outstanding January 1, 20222,090,182 $10.77 
Granted4,107,083 1.55 
Forfeited(167,129)9.94 
Vested/released(1,121,468)3.39 
Outstanding June 30, 20224,908,668 $4.77 

The table below summarizes equity-based compensation expense for the three and six months ended June 30, 2022 and 2021 (in thousands):

Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Cost of sales$228 $74 $403 $175 
Research and development539 1,328 901 4,074 
Sales, general and administrative3,204 5,188 5,646 11,180 
$3,971 $6,590 $6,950 $15,429 

The table below summarizes share-based compensation cost capitalized to inventory or inventory transferred to property and equipment (also referred to as instruments) for the three and six months ended June 30, 2022 and 2021 (in thousands):

Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Cost capitalized to inventory
$74 $87 $117 $242 

As of June 30, 2022, unrecognized equity-based compensation expense related to unvested stock options and unvested RSUs was $3.1 million and $11.0 million, respectively. This is expected to be recognized over the years 2022 through 2027.

Included in the above-noted stock options outstanding and stock compensation expense are performance-based stock options which vest only upon the achievement of certain targets. Performance-based stock options are generally granted at-the-money, contingently vest over a period of 1 to 2 years, depending on the nature of the performance goal, and have contractual lives of 10 years. These options were valued in the same manner as the time-based options, with the assumption that performance goals will be achieved. The inputs for expected volatility, expected dividends, and risk-free rate used in estimating those options’ fair value are the same as the time-based options issued under the Company's equity incentive plans. The expected term for performance-based stock options is 5 to 7 years. However, the Company only recognizes stock compensation expense to the extent that the targets are determined to be probable of being achieved, which triggers the vesting of the performance options.

During 2020, the Company granted 105,000 performance-based stock options. Of these performance-based stock options, performance obligations had been met for 90,000 options which became exercisable in a prior period. Of these performance-based stock options, 90,000 options expired during the three and six months ended June 30, 2022. No performance-based stock options were outstanding as of June 30, 2022.
The table below summarizes share-based compensation cost in connection with performance-based stock options for the six months ended June 30, 2022 and 2021 (in thousands):

Six Months Ended June 30,
20222021
Performance-based stock option expense
$— $230 

Included in the above-noted RSU and restricted stock award outstanding amounts are performance-based RSUs which vest only upon the achievement of certain targets. Performance-based RSUs contingently vest over a period of 1 to 3 years, depending on the nature of the performance goal, and have contractual lives of 10 years. These units were valued in the same manner as other RSUs, based on the published closing market price on the day before the grant date. However, the Company only recognizes stock compensation expense to the extent that the targets are determined to be probable of being achieved, which triggers the vesting of the performance options.

During 2020, the Company granted performance-based RSUs of which 165,974 were outstanding as of June 30, 2022. No changes occurred during the six months ended June 30, 2022.

During 2021, the Company granted performance-based RSUs of which 111,806 were outstanding as of June 30, 2022. No changes occurred during the six months ended June 30, 2022.

The table below summarizes share-based compensation cost in connection with performance-based RSUs for the six months ended June 30, 2022 and 2021 (in thousands):

Six Months Ended June 30,
20222021
Performance-based RSU expense
$— $818