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Stock-Based Compensation (Tables)
9 Months Ended
Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]  
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 OutstandingWeighted-Average Exercise Price Weighted-Average Remaining Contractual Life (Years)Aggregate Intrinsic Value
(unaudited)
(in thousands)
Balance as of January 1, 2023
5,438,2963,402,574$34.34 6.8$39,749 
2018 Plan annual increase(1)
3,689,000
Shares authorized under the 2023 Plan5,000,000
Granted(534,552)534,55234.55 
Exercised(40,868)7.08 
Canceled194,190(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 canceled40,142— 
Balance as of September 30, 2023
13,764,2603,701,331$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.
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 OutstandingWeighted-Average Grant Date Fair Value
(unaudited)
Balance as of January 1, 2023
3,687,888$60.70 
Granted724,46932.38 
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 OutstandingWeighted-Average Grant Date Fair Value
(unaudited)
Balance as of January 1, 2023
341,713$110.64 
Granted126,04132.84 
Vested and released(3,435)32.86 
Canceled(40,142)94.56 
Balance as of September 30, 2023
424,177$89.67 
Schedule of Performance-based Restricted Stock Units Vesting Conditions The following table presents additional information relating to each MSU award:
TranchePrice GoalNumber of RSUs
Tranche 1
$120 per share
565,192
Tranche 2
$150 per share
565,191
Tranche 3
$200 per share
565,191
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,
2023202220232022
(unaudited)
(in thousands)
Cost of precision oncology testing
$1,092 $1,316 $3,470 $3,695 
Cost of development services and other436 — 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 
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,
2023202220232022
(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,
20232022
(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
—%
—%