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Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2020

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Summary of Shares of Common Stock Available for Issuance

Shares of common stock available for issuance under the Company’s equity incentive plans at September 30, 2020 and December 31, 2019 were as follows:

	September 30,		December 31,
	2020		2019
Reserved for issuance upon exercise of options outstanding under the 2011 Plan		3,548,764		4,474,057
Reserved for issuance upon exercise or settlement of awards outstanding under the 2019 Plan		2,239,610		377,378
Reserved and available for issuance under the 2019 Plan ⁽¹⁾		2,200,594		2,392,343
Reserved for issuance upon exercise or settlement of awards outstanding under the Inducement Plan		199,300		—
Reserved and available for issuance under the Inducement Plan		800,700		—
Reserved and available for issuance under the ESPP ⁽²⁾		413,266		172,316
Total number of shares reserved		9,402,234		7,416,094
⁽¹⁾ September 30, 2020 balance includes share increase added January 1, 2020 pursuant to the “evergreen” provision in the amount of 1,562,151 shares
⁽²⁾ September 30, 2020 balance includes share increase added January 1, 2020 pursuant to the “evergreen” provision in the amount of 312,430 shares

Summary of Stock Option Activity

A summary of the Company’s stock option activity (excluding performance-based stock option activity summarized further below) under the 2011 Plan, 2019 Plan, and Inducement Plan for the nine months ended September 30, 2020 is as follows:

	Outstanding Options
(in thousands, except share and per share data)	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Balance—December 31, 2019		4,731,435		$	4.94		6.60	$	29,730
Options granted		1,157,641			9.21
Options exercised		(740,630	)		3.09
Options cancelled		(228,982	)		7.86
Balance—September 30, 2020		4,919,464		$	6.09		6.74	$	76,681
Options vested and exercisable as of September 30, 2020		2,793,499		$	3.92		5.14	$	49,591

Summary of Weighted-average Assumptions Used in Determination of Fair Value of Stock Options

The fair value of stock options was estimated using the following weighted-average assumptions:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
Expected term (in years)	5.77 - 6.08	6.00 - 6.08	5.50 - 6.08	5.00 - 6.87
Volatility	67.78 - 68.15%	62.28 - 63.08%	61.74 - 68.18%	56.20 - 63.08%
Risk-free interest rate	0.37 - 0.39%	1.53 - 1.73%	0.36 - 1.66%	1.53 - 2.52%
Dividend yield	–%	–%	–%	–%

Summary of Restricted Stock Units Activity

A summary of the Company’s RSU activity under the 2019 Plan and Inducement Plan for the nine months ended September 30, 2020 is as follows:

	Unvested Restricted Stock Units
(in thousands, except share and per share data)	Number of Shares			Weighted- Average Grant Date Fair Value		Aggregate Fair Value
Balance—December 31, 2019		120,000		$	8.86	$	1,308
RSUs granted		619,990			9.08
RSUs vested		(76,331	)		6.37		1,287
RSUs cancelled		(16,449	)		6.50
Balance—September 30, 2020		647,210		$	9.42	$	14,025

Stock Based Compensation Expense by Award Type and Function

The following is a summary of stock-based compensation expense by award type (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Stock options	$	957	$	1,190	$	3,219	$	3,165
Performance-based stock options		77		—		166		280
RSUs		462		—		885		—
ESPP		194		212		491		212
Total stock-based compensation expense	$	1,690	$	1,402	$	4,761	$	3,657

The following is a summary of stock-based compensation expense by function (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Costs of revenues	$	254	$	149	$	606	$	339
Research and development		511		290		1,164		647
Selling, general and administrative		925		963		2,991		2,671
Total stock-based compensation expense	$	1,690	$	1,402	$	4,761	$	3,657

Performance-Based Stock Option | 2019 Plan

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Summary of Stock Option Activity

A summary of the Company’s performance-based stock option activity under the 2019 Plan for the nine months ended September 30, 2020 is as follows:

	Outstanding Performance-Based Options
(in thousands, except share and per share data)	Number of Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Balance—December 31, 2019		—	$	—		—	$	—
Options granted		421,000		5.10
Options exercised		—
Options cancelled		—
Balance—September 30, 2020		421,000	$	5.10		9.46	$	6,976
Options vested and exercisable as of September 30, 2020		—	$	—		—	$	—

Summary of Weighted-average Assumptions Used in Determination of Fair Value of Stock Options

The Company estimated the fair value of the PSO using a Monte Carlo Model and the following assumptions and estimates:

	2020
Performance period (in years)		10.00
Derived service period (in years)		4.55
Volatility	63.60%
Risk-free interest rate	1.02%
Dividend yield	–%
Estimated fair value (per share)	$	3.31