STOCK-BASED COMPENSATION AND STOCKHOLDERS' EQUITY |
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STOCK-BASED COMPENSATION AND STOCKHOLDERS' EQUITY | STOCK-BASED COMPENSATION AND STOCKHOLDERS' EQUITY The Company accounts for stock-based compensation through the measurement and recognition of compensation expense for share-based payment awards made to employees, directors or consultants over the related requisite service period, including stock appreciation rights, restricted stock, restricted stock units ("RSUs") and performance units ("PSUs"), qualified performance-based awards, and stock grants (all issuable under the Company's equity incentive plans). In July 2022, the Company's board of directors and the majority of the Company's stockholders approved increasing the number of authorized shares of the Company’s common stock from 200,000,000 authorized shares to 300,000,000 authorized shares. The additional shares of common stock authorized have rights identical to the Company’s outstanding common stock. On May 26, 2022, the Company's board of directors approved the 2022 Equity Incentive Plan (the "2022 Plan"), which was adopted by the Company's stockholders on July 12, 2022. The Company reserved 8.0 million shares of the Company's common stock for issuance under the 2022 Plan plus the number of shares subject to awards that were outstanding under the 2012 Plan as of 12:01 a.m. Pacific Time on June 22, 2022 (the “Prior Plan Expiration Time”), to the extent that, after the Prior Plan Expiration Time, such shares would have recycled back to the 2012 Plan (as defined below) in connection with the awards’ expiration, termination, cancellation, forfeiture, or repurchase, as described further below, and in each case, subject to adjustment upon certain changes in the Company’s capitalization. The 2022 Plan provides for the granting of incentive stock options to employees and non-statutory stock options to employees, directors or consultants, and granting of stock appreciation rights, restricted stock, restricted stock units and performance units, qualified performance-based awards, and stock grants. The stock option price of incentive stock options granted cannot be less than the fair market value on the effective date of the grant. Options, restricted stock, and restricted stock units generally vest over or four years and expire ten years after the grant. As of June 30, 2023, 1,860,669 shares remained available for future grants under the 2022 Plan. Stock-Based Compensation The following table presents stock-based compensation expense (dollars in thousands):
Restricted Stock Units The following table presents the RSU activity (shares in thousands):
As of June 30, 2023, there was $69.6 million of total unrecognized compensation cost related to RSUs, which is expected to be recognized over a weighted average of 2.18 years. Performance Stock Units PSUs are issued to a group of executives with vesting that is contingent on both market performance and continued service. The PSUs generally vest over periods ranging from to three years based on Total Shareholder Return ("TSR"), as measured relative to specified market indices during the period from grant date through vesting date. A 2x multiplier will be applied for each percentage point of positive or negative relative TSR, such that the number of shares of common stock earned will increase or decrease by 2% of the target number of shares, subject to a maximum of 200% of the target number of shares. In the event that the Company’s relative TSR performance is less than negative 30%, relative to the specified index, no shares will be earned for the applicable performance period. All PSU awards vest at the end of the respective performance periods, for those executives with continued service. The following table presents the PSU activity (shares in thousands):
Total unrecognized compensation cost related to PSUs was $12.6 million as of June 30, 2023, which is expected to be recognized over a weighted average of 3.40 years. Employee Stock Purchase Plan ("ESPP") As of June 30, 2023, there was approximately $0.4 million of unrecognized compensation cost related to employee stock purchases. This cost is expected to be recognized over a weighted average period of 0.1 years. In July 2022, the Company added 3.6 million shares to the ESPP for future issuances, and, as of June 30, 2023, a total of 1.3 million shares were available for issuance under the ESPP.
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