Stock-Based Compensation (Tables)
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9 Months Ended |
Sep. 30, 2023 |
Share-Based Payment Arrangement [Abstract] |
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Schedule of Share-based Compensation, Stock Options, Activity |
A summary of the Company’s stock option activity under the 2012 Plan, the 2018 Plan, and the 2023 Plan and related information is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Options Outstanding | | Shares Available for Grant | | Shares Subject to Options Outstanding | | Weighted-Average Exercise Price | | Weighted-Average Remaining Contractual Life (Years) | | Aggregate Intrinsic Value | | | | | | | | | | | | (unaudited) | | | | (in thousands) | Balance as of January 1, 2023 | 5,438,296 | | 3,402,574 | | $ | 34.34 | | | 6.8 | | $ | 39,749 | | 2018 Plan annual increase(1) | 3,689,000 | | — | | | | | | | Shares authorized under the 2023 Plan | 5,000,000 | | — | | | | | | | Granted | (534,552) | | 534,552 | | 34.55 | | | | | | | | | | | | | | | | Exercised | — | | (40,868) | | 7.08 | | | | | | Canceled | 194,190 | | (194,927) | | 65.89 | | | | | | Restricted stock units granted | (724,469) | | — | | — | | | | | | Restricted stock units canceled | 787,694 | | — | | — | | | | | | | | | | | | | | | | | | | | | | | | | | Performance-based restricted stock units granted | (126,041) | | — | | — | | | | | | Performance-based restricted stock units canceled | 40,142 | | — | | — | | | | | | Balance as of September 30, 2023 | 13,764,260 | | 3,701,331 | | $ | 33.01 | | | 6.5 | | $ | 43,284 | | Vested and Exercisable as of September 30, 2023 | | | 2,253,535 | | $ | 23.79 | | | 4.9 | | $ | 42,275 | |
(1)Effective as of January 1, 2023, an additional 3,689,000 shares of common stock became available for issuance under the 2018 Plan, as a result of the operation of an automatic annual increase provision therein.
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Schedule of Restricted Stock Activity |
A summary of the Company’s restricted stock unit activity excluding the performance-based and market-based restricted stock units under the 2012 Plan and the 2018 Plan and related information is as follows: | | | | | | | | | | | | | | | | | Restricted Stock Units Outstanding | | Weighted-Average Grant Date Fair Value | | | | | | | | (unaudited) | Balance as of January 1, 2023 | | 3,687,888 | | $ | 60.70 | | Granted | | 724,469 | | 32.38 | | | | | | | Vested and released | | (511,688) | | 62.83 | | Canceled | | (787,694) | | 60.16 | | Balance as of September 30, 2023 | | 3,112,975 | | $ | 53.90 | |
A summary of the Company’s PSU activity under the 2018 Plan and related information is as follows: | | | | | | | | | | | | | | | | | PSUs Outstanding | | Weighted-Average Grant Date Fair Value | | | | | | | | (unaudited) | Balance as of January 1, 2023 | | 341,713 | | $ | 110.64 | | Granted | | 126,041 | | 32.84 | | Vested and released | | (3,435) | | 32.86 | | Canceled | | (40,142) | | 94.56 | | Balance as of September 30, 2023 | | 424,177 | | $ | 89.67 | |
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Schedule of Performance-based Restricted Stock Units Vesting Conditions |
The following table presents additional information relating to each MSU award: | | | | | | | | | | | | | | | Tranche | | Price Goal | | Number of RSUs | Tranche 1 | | $120 per share | | 565,192 | Tranche 2 | | $150 per share | | 565,191 | Tranche 3 | | $200 per share | | 565,191 |
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Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan |
The following table presents the effect of employee and non-employee related stock-based compensation expense including the Joint Venture: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | | 2023 | | 2022 | | 2023 | | 2022 | | | | | | | | | | | | (unaudited) | | | (in thousands) | Cost of precision oncology testing | | $ | 1,092 | | | $ | 1,316 | | | $ | 3,470 | | | $ | 3,695 | | Cost of development services and other | | 436 | | | — | | | 1,387 | | | — | | Research and development expense | | 8,491 | | | 7,044 | | | 25,390 | | | 18,503 | | Sales and marketing expense | | 5,061 | | | 6,466 | | | 18,387 | | | 17,978 | | General and administrative expense | | 6,739 | | | 5,813 | | | 17,805 | | | 30,806 | | Total stock-based compensation expense | | $ | 21,819 | | | $ | 20,639 | | | $ | 66,439 | | | $ | 70,982 | |
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Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions |
The grant date fair value of stock options was estimated using a Black-Scholes option-pricing model with the following weighted-average assumptions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | | 2023 | | 2022 | | 2023 | | 2022 | | | | | | | | | | | | (unaudited) | Expected term (in years) | | 5.97 | | 5.94 – 6.02 | | 5.50 – 6.10 | | 5.50 – 6.10 | Expected volatility | | 69.4% | | 66.8% – 67.3% | | 69.4% – 70.5% | | 63.3% – 67.3% | Risk-free interest rate | | 4.2% | | 2.9% | | 3.4% – 4.2% | | 1.9% – 3.4% | Expected dividend yield | | —% | | —% | | —% | | —% |
The grant date fair value of the stock purchase right granted under the ESPP was estimated using a Black-Scholes option-pricing model with the following assumptions: | | | | | | | | | | | | | | | | | Nine Months Ended September 30, | | | 2023 | | 2022 | | | | | | | | (unaudited) | Expected term (in years) | | 0.50 | | 0.50 | Expected volatility | | 76.6% | | 92.0% | Risk-free interest rate | | 5.2% | | 1.5% | Expected dividend yield | | —% | | —% |
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