Equity-Based Compensation |
8. 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, 2024 and 2023 (in thousands): | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | | 2024 | | 2023 | | 2024 | | 2023 | Research and development expense | | $ | 4,050 | | $ | 2,838 | | $ | 7,581 | | $ | 5,483 | General and administrative expense | | | 5,261 | | | 3,980 | | | 9,895 | | | 7,505 | | | $ | 9,311 | | $ | 6,818 | | $ | 17,476 | | $ | 12,988 |
The following table summarizes the Company’s unrecognized equity-based compensation expense as of June 30, 2024: | | | | | | | | As of June 30, 2024 | | | Unrecognized Expense (in thousands) | | Weighted Average Remaining Period of Recognition (years) | Restricted Stock Units | $ | 35,116 | | 2.8 | Stock Options | | 42,470 | | 2.6 | | $ | 77,586 | | |
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, 2023 | | 2,089,552 | | $ | 11.92 | Granted | | 1,647,159 | | $ | 14.98 | Vested | | (601,170) | | $ | 12.16 | Forfeited | | (150,878) | | $ | 12.38 | Restricted stock units as of June 30, 2024 | | 2,984,663 | | $ | 13.54 |
The total fair value of restricted stock units vested during the six months ended June 30, 2024 was $8.2 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, 2023 | | 7,300,953 | | $ | 15.00 | | 7.90 | | $ | 52,299 | Granted | | 2,196,217 | | $ | 14.98 | | | | | | Exercised | | (53,910) | | $ | 6.09 | | | | | | Cancelled | | (275,708) | | $ | 17.91 | | | | | | Outstanding as of June 30, 2024 | | 9,167,552 | | $ | 14.96 | | 7.86 | | $ | 3,529 | Options exercisable as of June 30, 2024 | | 4,473,458 | | $ | 16.82 | | 6.75 | | $ | 2,506 |
Using the Black-Scholes option pricing model, the weighted average fair value of options granted during the six months ended June 30, 2024 was $11.50. The following weighted average assumptions were used in determining the fair value of options granted in the six months ended June 30, 2024 and 2023: | | | | | | Six Months Ended | | | June 30, | | | 2024 | | 2023 | | Risk-free interest rate | 4.18 | % | 3.84 | % | Expected dividend yield | 0.0 | % | 0.0 | % | Expected term (years to liquidity) | 5.98 | | 6.13 | | Expected volatility | 91.35 | % | 90.51 | % |
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