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Stock-Based Compensation
9 Months Ended
Sep. 30, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation
Stock-Based Compensation
In June 2018, the Company adopted the 2018 Equity Incentive Plan (2018 Plan). The 2018 Plan provided for the Company to sell or issue common stock or restricted common stock, or to grant incentive stock options or nonqualified stock options for the purchase of common stock, to employees, members of the Company’s board of directors and consultants of the Company under terms and provisions established by the Company’s board of directors. In October 2018, the Board of Directors approved an amendment and restatement of the 2018 Plan, increasing the shares of common stock issuable under the 2018 Plan as well as allowing for an automatic annual increase to the shares issuance under the 2018 Plan to the amount equal to 5% of the total number of shares of common stock outstanding on December 31 of the preceding calendar year. The term of any stock option granted under the 2018 Plan cannot exceed 10 years. The Company generally grants stock-based awards with service conditions only. Options shall not have an exercise price less than 100% of the fair market value of the Company’s common stock on the grant date. Options granted typically vest over a four-year period but may be granted with different vesting terms. Restricted Stock Units granted typically vest annually over a four-year period but may be granted with different vesting terms.
As of September 30, 2019, there were 9,915,688 shares reserved by the Company under the 2018 Plan for the future issuance of equity awards.
Stock Option Activity
The following summarizes option activity under the 2018 Plan:
 
Number
of
Options
 
Weighted-
Average
Exercise
Price
 
Weighted-
Average
Remaining
Contract
Term
 
 
 
 
 
(In years)
Balance, December 31, 2018
7,235,545

 
$
7.72

 
9.62
Options granted
2,781,316

 
27.50

 
9.55
Options exercised
(304,576
)
 
2.31

 
7.72
Options forfeited
(220,151
)
 
9.03

 
8.91
Balance, September 30, 2019
9,492,134

 
$
13.65

 
9.07
Exercisable, September 30, 2019
4,553,432

 
$
10.03

 
9.00
Vested and expected to vest, September 30, 2019
9,492,134

 
$
13.65

 
9.07

Restricted Stock Unit Activity
The following summarizes restricted stock unit activity under the 2018 Plan:
 
Restricted
Stock Units
 
Weighted-
Average Fair
Value at Date
of Grant per
Share
Unvested December 31, 2018

 

Granted
1,795,905

 
$
27.46

Vested
(250
)
 
25.94

Forfeited
(22,500
)
 
27.55

Unvested September 30, 2019
1,773,155

 
$
27.46

Vested and expected to vest, September 30, 2019
1,773,155

 
$
27.46


Total stock-based compensation related to stock options, restricted stock units, employee stock purchase plan and vesting of the founders’ common stock was as follows (in thousands):
 
Three Months Ended September 30
 
Nine Months Ended September 30
 
2019
 
2018
 
2019
 
2018
Research and development
$
5,533

 
$
427

 
$
13,012

 
442

General and administrative
7,301

 
4,212

 
19,177

 
12,253

Total stock-based compensation
$
12,834

 
$
4,639

 
$
32,189

 
$
12,695


Early Exercised Options
The Company allows certain of its employees and its directors to exercise options granted under the 2018 Plan prior to vesting. The shares related to early exercised stock options are subject to the Company’s lapsing repurchase right upon termination of employment or service on the Company’s board of directors at the lesser of the original purchase price or fair market value at the time of repurchase. In order to vest, the holders are required to provide continued service to the Company. The proceeds are initially recorded in accrued and other liabilities for the current portion, and other long-term liabilities for the noncurrent portion. The proceeds are reclassified to paid-in capital as the repurchase right lapses. As of September 30, 2019, there was $2.8 million recorded in accrued and other liabilities and $4.6 million recorded in other long-term liabilities related to shares held by employees and directors that were subject to repurchase. The underlying shares are shown as outstanding in the condensed financial statements since the exercise date.