Equity Incentive Plans and Stock-Based Compensation

9 Months Ended

Sep. 30, 2021

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Equity Incentive Plans and Stock-Based Compensation

8. Equity Incentive Plans and Stock-Based Compensation

As of September 30, 2021, there were 1,938,448 shares available for future issuance under the 2020 Equity Incentive Plan.

The following table summarizes the option activity for the nine months ended September 30, 2021:

	Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2020		3,996,174		$	9.03		8.5	$	99,107
Granted		1,534,842			27.42
Exercised		(61,768	)		2.86
Forfeited and cancelled		(209,302	)		21.20
Outstanding at September 30, 2021		5,259,946		$	13.99		8.2	$	47,735
Exercisable at September 30, 2021		2,149,552		$	6.34		7.3	$	31,542

The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Options to purchase common stock		5,259,946		3,959,693		5,259,946		3,959,693
Total		5,259,946		3,959,693		5,259,946		3,959,693

Stock-Based Compensation Expense

The fair value of stock option awards to employees, executives, directors, and other service providers was estimated at the date of grant using the Black-Scholes Merton option pricing model with the following assumptions:

	Nine Months Ended September 30,
	2021	2020
Stock price	$16.61 - $35.67	$16.00 - $35.92
Risk-free interest rate	0.60% - 1.15%	3.17% - 4.45%
Expected volatility	82.88% - 88.43%	88.01% - 95.11%
Expected term (in years)	5.50 - 6.08	5.50 - 6.08
Expected dividend yield	0%	0%

The total unrecognized compensation expense related to outstanding unvested stock-based awards as of September 30, 2021, was $38.6 million, which is expected to be recognized over a weighted-average remaining service period of 2.64 years.

The table below summarizes the total stock-based compensation expense included in the Company’s statements of operations and comprehensive loss for stock options for the periods presented (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Research and development	$	1,250	$	592	$	3,608	$	1,406
General and administrative		2,147		1,089		5,746		2,183
Total stock-based compensation expense	$	3,397	$	1,681	$	9,354	$	3,589