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Stock-Based Compensation
 9 Months Ended
Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Total stock-based compensation recognized, before taxes, are as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Cost of sales$1,893 $660 $4,891 $1,730 
Research and development2,146 1,375 5,446 3,506 
Sales, general and administrative5,521 3,922 15,250 10,509 
Stock-based compensation capitalized in inventory(1,048)(631)(2,832)(1,592)
Total stock-based compensation$8,512 $5,326 $22,755 $14,153 
Stock Options
The Company had 6.8 million shares available for grant as of September 30, 2024 under the 2021 Equity Incentive Award Plan or the 2021 Plan.
A summary of the Company’s stock option activity and related information are as follows (options in thousands):
Nine Months Ended
September 30, 2024
Number of SharesWeighted-Average Exercise Price
Outstanding, beginning of period5,215 $9.42 
Granted173 50.13 
Exercised(909)8.22 
Forfeited(137)20.67 
Outstanding, end of period4,342 10.93 
Vested and expected to vest4,342 10.93 
Exercisable3,724 7.66 
As of September 30, 2024 and December 31, 2023, the aggregate pre-tax intrinsic value of options outstanding and exercisable was $271.4 million and $144.0 million, respectively, and the aggregate pre-tax intrinsic value of options outstanding were $300.4 million and $169.5 million, respectively. The aggregate pre-tax intrinsic value of options exercised was $47.2 million and $8.9 million during the nine months ended September 30, 2024 and 2023, respectively.
As of September 30, 2024, there was a total of $9.9 million of unrecognized stock-based compensation expense related to stock options.
The fair value of the options granted to employees or directors was estimated as of the grant date using the Black-Scholes model assuming the weighted-average assumptions listed in the following table:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Expected life (years)6.00.06.06.0
Expected volatility 57 %— %57 %57 %
Risk-free interest rate 4.1 %— %4.1 %4.0 %
Expected dividend rate — %— %— %— %
Weighted-average fair value$38.24 $— $28.52 $21.02 
Restricted Stock Units
A summary of the Company’s restricted stock unit, or RSU, activity and related information are as follows (RSUs in thousands):
Nine Months Ended
September 30, 2024
Number of SharesWeighted-Average Fair Value
Outstanding, beginning of period1,565 $36.27 
Awarded991 50.95 
Forfeited(234)39.12 
Vested(390)36.06 
Outstanding, end of period1,932 43.50 
As of September 30, 2024, there was a total of $70.3 million of unrecognized stock-based compensation expense related to RSUs.
Performance Stock Units
The 2021 Plan provides for issuance of performance stock units or PSUs. PSUs granted are contingent upon the achievement of predetermined market, performance, and service conditions. PSUs are awarded to executives of the Company and generally time vest over two and three years. Vesting is also generally contingent upon achievement of applicable performance metrics. PSU expense is recognized over the requisite service period.

During the nine months ended September 30, 2024, the Company awarded approximately 61,000 PSU shares with both a performance and service condition. A certain performance condition will be defined at a later date. Per ASC 718 – Compensation, Stock Compensation, these grants have not met the definition of having a grant date, and therefore, no expense has been recognized for these PSUs. Expense will be recognized when the performance condition becomes defined.

During the nine months ended September 30, 2024, the Company awarded approximately 20,000 PSU shares with both a market and service condition.

No PSU shares were forfeited or released during the three and nine months ended September 30, 2024. As of September 30, 2024, unrecognized compensation expense related to PSUs was not material.
Employee Stock Purchase Plan
As of September 30, 2024, there was approximately $1.2 million of unrecognized cost related to the Employee Stock Purchase Plan or ESPP. This cost is expected to be recognized over a weighted average period of 0.6 years. As of September 30, 2024, a total of 1.5 million shares were available for issuance under the ESPP.
The fair value of the options granted to employees was estimated as of the grant date using the Black-Scholes model assuming the weighted-average assumptions listed in the following table:
Nine Months Ended September 30,
20242023
Expected life (years)0.80.8
Expected volatility 53 %55 %
Risk-free interest rate 5.3 %5.0 %
Expected dividend rate — %— %
Weighted-average fair value$22.10 $11.28