Stock-Based Compensation Expense

3 Months Ended

Mar. 31, 2022

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation Expense

12. Stock-Based Compensation Expense

During the three months ended March 31, 2022, the Company granted the following awards:

	Three Months Ended
	March 31, 2022
Employee awards:
RSUs		88,415	(1)

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(1) RSUs had a weighted average grant date fair value of $2.72 per share, of which 12,800 RSUs had a cliff vesting period of three years and 75,615 RSUs had a vesting period of four years.

As of March 31, 2022, there was $1.5 million of unrecognized stock-based compensation expense related to options and PNQs, which is expected to be recognized over a weighted average period of approximately 1.20 years, and $9.4 million and $8.6 million of unrecognized stock-based compensation expense related to RSUs and Market RSUs, respectively, which is expected to be recognized over a weighted average period of approximately 2.86 and 1.84 years, respectively.

Total stock-based compensation expense recognized in the condensed consolidated statements of operations as cost of goods sold, cost of revenue – collaborations and services, research and development and selling, general and administrative expense for the three months ended March 31, 2022 and 2021 was as follows (in thousands):

	Three Months Ended March 31,
	2022		2021
RSUs and options	$	2,644	$	1,826
Employee stock purchase plan		162		109
Total stock compensation expense	$	2,806	$	1,935

Employee Stock Purchase Plan

The Company provides all employees, including executive officers, the ability to purchase common stock at a discount under the Company’s 2004 employee stock purchase plan (the “ESPP”). The ESPP is designed to comply with Section 423 of the Internal Revenue Code and provides all employees with the opportunity to purchase up to $25,000 worth of common stock (based on the undiscounted fair market value at the commencement of the offering period) each year at a purchase price that is the lower of 85% of the fair market value of the common stock on either the date of purchase or the commencement of the offering period. An employee may not purchase more than 5,000 shares of common stock on any purchase date. The executives’ rights under the ESPP are identical to those of all other employees.

The Company issued 233,401 and 292,981 shares of common stock pursuant to the ESPP for the three months ended March 31, 2022 and 2021, respectively. There were approximately 0.9 million shares of common stock available for issuance under the ESPP as of March 31, 2022.