v3.22.4
Stock-Based Compensation
 9 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
2019 Equity Incentive Plan

In December 2019, the Company’s stockholders approved the 2019 Equity Incentive Plan (the “2019 Plan”) and reserved 5,500,000 shares of common stock for issuance thereunder. The maximum number of shares of common stock that may be issued pursuant to the exercise of incentive options under the 2019 Plan is 16,500,000. The number of shares of common stock reserved for issuance under the 2019 Plan will automatically increase on April 1 of each year, continuing through April 1, 2029, by 4.0% of the total number of shares of common stock outstanding on the last day of the preceding month. On April 1, 2022, 4,659,315 shares of common stock were added to the 2019 Plan pool in accordance with the evergreen provision of the 2019 Plan. As of December 31, 2022, options to purchase 8,355,667 shares of common stock and 4,528,774 restricted stock units (“RSUs”) were outstanding under the 2019 Plan and 1,286,372 shares of common stock remained available for future grant under the 2019 Plan.

2018 Equity Incentive Plan

As of the effective date of the 2019 Plan, no further stock awards have been or will be made under 2018 Equity Incentive Plan (the “2018 Plan”). As of December 31, 2022, 2,921,615 stock options were outstanding under the 2018 Plan.
Stock Option Activity

A summary of the stock option activity under the Company’s equity incentive plans is as follows:

 Number of
Options		Weighted-
Average
Exercise Price		Remaining
Contractual
Term (Years)		Aggregate
Intrinsic Value
(in thousands)
Balance - March 31, 20228,018,731 $8.48 8.52$60 
Granted3,622,676 5.60 
Exercised(57,678)7.35 
Forfeited(275,038)6.31 
Expired(31,409)8.69 
Balance - December 31, 202211,277,282 $7.61 8.34$114,573 
Exercisable - December 31, 20224,607,462 $8.86 7.28$41,192 

The aggregate intrinsic value is calculated as the difference between the exercise price of all outstanding and exercisable stock options and the fair value of the Company’s common stock as of December 31, 2022. The intrinsic value of stock options exercised for the nine months ended December 31, 2022 was $0.2 million. There were no stock options exercised during the nine months ended December 31, 2021. The stock options granted during the nine months ended December 31, 2022 had a weighted-average grant date fair value per share of $4.22.

The Company estimated the fair value of each option on the date of grant using the Black-Scholes option pricing model applying the weighted-average assumptions in the following table:

 Three Months Ended December 31,Nine Months Ended December 31,
 2022202120222021
Risk-free interest rate
3.85% - 4.21%
1.17% - 1.36%
2.74% - 4.21%
0.80% - 1.36%
Expected term, in years
6.11
6.11
6.11
6.03 - 6.11
Expected volatility
89.37% - 92.43%
86.74% - 87.78%
87.12% - 92.43%
82.92% - 91.15%
Expected dividend yield—%—%—%—%

Restricted Stock Unit Awards

A summary of RSUs activity under the Company’s equity incentive plans is as follows:
Number of RSUsWeighted- Average Grant Date Fair Value
Nonvested as of March 31, 2022
2,670,864 $9.12 
Issued2,473,469 5.46 
Vested(383,109)12.24 
Forfeited(232,450)7.74 
Nonvested as of December 31, 2022
4,528,774 $6.92 
Stock-based Compensation Expense

For the three and nine months ended December 31, 2022 and 2021, stock-based compensation expense under the Company’s equity incentive plans was as follows (in thousands):

 Three Months Ended
December 31,		Nine Months Ended December 31,
 2022202120222021
Research and development expenses$4,137 $4,797 $11,556 $8,602 
General and administrative expenses4,719 5,157 12,906 12,841 
Total stock-based compensation$8,856 $9,954 $24,462 $21,443 
As of December 31, 2022, total unrecognized compensation expense related to non-vested stock options and RSUs was $38.2 million and $20.7 million, respectively, which is expected to be recognized over the remaining weighted-average service period of 2.71 years and 2.83 years, respectively.

Stock-based Compensation Allocated to the Company by RSL

In relation to the RSL common share awards and options issued by RSL to employees of Roivant and the Company, stock-based compensation expense of $0 and $0.1 million was recorded for the three months ended December 31, 2022 and 2021, respectively, and $0.1 million and $0.4 million for the nine months ended December 31, 2022 and 2021, respectively, in the accompanying unaudited condensed consolidated statements of operations.

RSL RSUs
The Company’s Chief Executive Officer was granted 73,155 RSUs of RSL in January 2021, which are vesting over a period of four years. For the three months ended December 31, 2022 and 2021, the Company recorded $0.1 million and $0.1 million, respectively, and for the nine months ended December 31, 2022 and 2021, the Company recorded $0.3 million and $0.5 million, respectively, of stock-based compensation expense related to these RSUs. As of December 31, 2022, there was $0.1 million of unrecognized compensation expense related to unvested RSL RSUs.