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Share-based Compensation
 6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Share-based Compensation Share-based Compensation
The Company's Amended and Restated Equity Incentive Plan (the Plan), which was adopted and approved by the Company's shareholders in June 2021, allows for an issuance of up to an aggregate of 23.8 million shares (inclusive of then outstanding awards) and provides for grants of stock options, performance awards (PAs), and restricted stock units (RSUs) that may be settled in cash and common shares. Also in June 2021, the Company's shareholders adopted and approved the Company's Employee Stock Purchase Plan (2021 ESPP), which allows for the issuance of up to 2.5 million shares. The 2021 ESPP is intended to qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code but also permits the Company to include the employees, including non-United States employees, in offerings not intended to qualify under Section 423. The purpose of the 2021 ESPP is to provide eligible employees with opportunities to purchase the Company’s common shares at a discounted price. As of June 30, 2024, 0.9 million shares have been purchased under the ESPP.
In addition to stock options, PAs and RSUs granted under the Plan, the Company has granted certain stock options and RSUs as inducements material to new employees entering employment in accordance with Nasdaq Listing Rule 5635(c)(4). The inducements were granted outside of the Plan.
Stock Options
The Plan requires the exercise price of each option not to be less than the closing market price of the Company’s common shares on the business day immediately prior to the date of grant. The Board of Directors approves the vesting criteria and periods at its discretion. The options issued under the Plan are accounted for as equity-settled share-based payments.
The Company used the Black-Scholes option pricing model to estimate the fair value of the options granted. The assumptions used for the annual volatility and expected life of the options are reviewed and updated annually. The Company considers historical volatility of its common shares in estimating its future stock price volatility. The risk-free interest rate for the expected life of the options was based on the yield available on government benchmark bonds with an approximate equivalent
remaining term at the time of the grant. The expected life is based upon the contractual term, taking into account expected employee exercise and expected post-vesting employment termination behavior.
The following weighted average assumptions were used to estimate the fair value of the options granted during the six months ended June 30, 2024 and June 30, 2023:
20242023
Annualized volatility77 %71 %
Risk-free interest rate4.23 %3.83 %
Expected life of options in years5.0 years5.0 years
Estimated forfeiture rate13.1 %12.6 %
Dividend rate0.0 %0.0%
Fair value per common share option$3.90 $5.99 
The following table summarizes the option award activity for the six months ended June 30, 2024:

June 30, 2024
Number of shares (in thousands)Weighted average exercise price $
Outstanding - December 31, 2023
11,556 $10.63 
Granted152 6.00 
Exercised(85)4.80 
Forfeited or cancelled
(1,688)12.47 
Outstanding - June 30, 20249,935 $10.30 
Restricted Stock Units and Performance Awards
The Company has granted RSUs and PAs under the Plan, as well as inducements for certain new hires as discussed above. The RSUs and PAs are fair valued based on the previous business days' market price of common shares on the date of the grant.
The following table summarizes the RSU and PA activity for the six months ended June 30, 2024:
June 30, 2024
Number of shares (in thousands)Weighted average fair value price $
Unvested balance, December 31, 2023
7,807 $9.29 
Granted4,550 6.92 
Vested(2,338)9.54 
Forfeited(1,480)9.03 
Unvested balance, June 30, 20248,539 $8.01 
Share-based Compensation Expense
The Company recognized share-based compensation expense for the three and six months ended June 30, 2024 and June 30, 2023 as follows:
Three months ended
June 30,		Six months ended
June 30,
(in thousands)2024202320242023
Research and development$87 $2,114 $(2,079)$3,704 
Selling, general and administrative8,078 9,820 15,615 17,409 
Capitalized under inventories421 334 787 622 
Share-based compensation expense$8,586 $12,268 $14,323 $21,735 
As of June 30, 2024, there was $32.9 million of unrecognized share-based compensation expense related to unvested awards granted which is expected to be recognized over a weighted-average period of approximately 1.4 years.