STOCK-BASED COMPENSATION

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

The following table shows total stock-based compensation expense recognized in the accompanying Consolidated Statements of Operations (in thousands):


	Year Ended December 31,
	2022		2021		2020
Research and development	$	18,404	$	19,534	$	13,523
General and administrative	13,246		13,422		12,185
Total stock-based compensation expense	$	31,650	$	32,956	$	25,708

As of December 31, 2022, total stock-based compensation expense to be recognized in future periods related to unvested stock options was $23.3 million, which is expected to be expensed over a weighted-average period of 2.07 years. As of December 31, 2022, total stock-based compensation expense to be recognized in future periods related to unvested RSUs was $23.7 million, which is expected to be expensed over a weighted-average period of 1.90 years. There was no capitalized stock-based employee compensation expense as of December 31, 2022, 2021 or 2020.

Valuation Assumptions

Employee stock-based compensation expense was determined using the Black-Scholes option valuation model for stock options and employee share purchases under the ESPP. Option valuation models require the input of subjective assumptions and these assumptions can vary over time. The fair value of RSUs was based on the closing price of the underlying common stock on the date of grant.

The Company bases its determination of expected volatility through its assessment of the historical volatility of its common stock. The Company relied on its historical exercise and post-vested termination activity for estimating its expected term for use in determining the fair value of these options.

The weighted-average estimated fair value per share of options granted during the years ended December 31, 2022, 2021 and 2020 was $3.73, $7.34, and $5.25, respectively, based upon the assumptions used in the Black-Scholes valuation

model. The assumptions used for estimating the fair value of the employee stock options were as follows:


	Year Ended December 31,
	2022	2021	2020
Risk-free interest rate	2.15-3.69%	0.95-1.22%	0.34-0.61%
Expected term (in years)	5.46-5.49	5.46-5.52	5.51-5.57
Expected dividend yield of stock	—	—	—
Expected volatility	72.38-76.01%	77.30-79.77%	77.61-80.32%

Employees purchased 576,950, 433,107 and 274,382 shares of common stock through the ESPP at a weighted-average exercise price of $3.07, $7.78, and $7.34 per share during the years ended December 31, 2022, 2021 and 2020, respectively. The weighted-average estimated fair values of shares purchased under the Company’s ESPP during the years ended December 31, 2022, 2021 and 2020 were $1.85, $4.48 and $8.02, respectively, based upon the assumptions used in the Black-Scholes valuation model.

The assumptions used for estimating the fair value of the ESPP purchase rights are as follows:


	Year Ended December 31,
	2022	2021	2020
Risk-free interest rate	1.62-4.61%	0.01-2.80%	1.53-2.80%
Expected term (in years)	0.5-2.0	0.0-2.0	0.5-2.0
Expected dividend yield of stock	—	—	—
Expected volatility	57.97-72.14%	32.54-97.88%	51.02-91.96%