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Equity-Based Compensation
6 Months Ended
Jun. 30, 2022
Equity-Based Compensation  
Equity-Based Compensation

7. Equity-Based Compensation

The Company recorded equity-based compensation expense related to all equity-based awards, which was allocated as follows in the consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2022 and 2021 (in thousands):

Three Months Ended

Six Months Ended

June 30, 

June 30, 

    

2022

    

2021

    

2022

    

2021

Research and development expense

$

3,116

$

2,847

$

6,523

$

4,958

General and administrative expense

 

3,675

 

3,379

 

7,096

 

5,941

$

6,791

$

6,226

$

13,619

$

10,899

The following table summarizes the Company’s unrecognized equity-based compensation expense as of June 30, 2022:

As of June 30, 2022

Unrecognized Expense (in thousands)

    

Weighted Average Remaining Period of Recognition (years)

Restricted Stock Units

23,719

3.1

Stock Options

43,158

2.5

$

66,877

Restricted Stock Units

The following table summarizes the Company’s restricted stock unit activity for the current year:

Weighted

Average Grant

    

Number of Units

    

Date Fair Value

Restricted stock units as of December 31, 2021

 

314,901

$

47.38

Granted

 

1,704,282

$

11.03

Vested

 

(60,226)

$

52.39

Forfeited

 

(144,330)

$

25.67

Restricted stock units as of June 30, 2022

 

1,814,627

$

14.81

The total fair value of restricted stock units vested during the six months ended June 30, 2022 was $1.0 million.

Stock Options

The following table summarizes the Company’s stock option activity for the current year:

Weighted

Weighted

Average

Number of 

Average

Remaining

Aggregate

    

Shares

    

Exercise Price

    

Contractual Term

    

Intrinsic Value

(in years)

(in thousands)

Outstanding as of December 31, 2021

 

3,743,400

$

25.55

8.06

$

26,272

Granted

 

2,081,968

$

10.71

Exercised

(42,392)

$

11.37

Cancelled

 

(383,749)

$

30.01

Outstanding as of June 30, 2022

 

5,399,227

$

19.62

8.06

$

748

Options exercisable as of June 30, 2022

 

2,050,517

$

20.17

6.28

$

Using the Black-Scholes option pricing model, the weighted average fair value of options granted during the six months ended June 30, 2022 was $7.74.

The following weighted average assumptions were used in determining the fair value of options granted in the six months ended June 30, 2022 and 2021:

Six Months Ended

June 30, 

2022

    

2021

Risk-free interest rate

2.63

%  

0.74

%

Expected dividend yield

0.0

%  

0.0

%

Expected term (years to liquidity)

5.83

6.21

Expected volatility

87.51

%  

87.89

%

2022 Inducement Plan

In June 2022, the Board of Directors of the Company approved the Scholar Rock Holding Corporation 2022 Inducement Equity Plan (the “2022 Inducement Plan”). Pursuant to the terms of the 2022 Inducement Plan, the Company may grant non-qualified stock options, stock appreciation rights, restricted stock awards, restricted stock units, unrestricted stock awards and dividend equivalent rights for up to a total of 1,000,000 shares of common stock to individuals that were not previously an employee or director of the Company or individuals returning to employment after a bona fide period of non-employment with the Company. As of June 30, 2022, no awards have been granted from the 2022 Inducement Plan.