In 2017, the Company adopted the 2017 IPO Stock Incentive Plan (“Plan”), which governs the issuance of equity awards to employees, certain non-employee consultants, and directors. Initially, the Company reserved 900 thousand shares for issuance under the Plan with an initial sublimit for incentive stock options of 900 thousand shares. On an annual basis, the amount of shares available for issuance under the Plan increases by an amount equal to four percent of the total outstanding shares as of the last day of the preceding calendar year. The sublimit of incentive stock options is not subject to the increase. The Company has historically granted stock options, restricted stock awards (“RSAs”), restricted stock units (“RSUs”) and performance-based restricted stock units (“PSUs” and with RSUs commonly referred to collectively as “restricted stock units”) to certain employees.


	Stock Options Outstanding	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value(1) (in thousands)
Outstanding as of December 31, 2024	2,049,063	$	82.69	7.3	$	156,404
Granted	255,773	$	176.00
Exercised	(17,123)	$	85.39
Cancelled or forfeited	(25,240)	$	107.01

Outstanding as of March 31, 2025	2,262,473	$	92.94	7.4	$	198,813
Exercisable as of March 31, 2025	1,168,812	$	69.13	6.4	$	130,018

(1)Aggregate intrinsic value represents the difference between the closing stock price of our Common Stock on December 31, 2024 and March 31, 2025 and the exercise price of outstanding in-the-money options.


	Stock Options Outstanding	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value(1) (in thousands)
Outstanding as of December 31, 2023	2,606,592	$	66.39	7.9	$	150,405
Granted	126,742	$	155.82
Exercised	(259,581)	$	61.52
Cancelled or forfeited	(245,659)	$	67.89

Outstanding as of March 31, 2024	2,228,094	$	71.88	7.7	$	236,279
Exercisable as of March 31, 2024	854,224	$	61.08	6.8	$	99,815

(1)Aggregate intrinsic value represents the difference between the closing stock price of our Common Stock on December 31, 2023 and March 31, 2024 and the exercise price of outstanding in-the-money options.

The total intrinsic value (the amount by which the fair market value exceeds the exercise price) of stock options exercised was $1.4 million and $24.5 million during the three months ended March 31, 2025 and 2024, respectively.

The weighted-average grant-date fair value per share of options granted to employees, non-employees, and directors was $116.88 and $106.92 during the three months ended March 31, 2025 and 2024, respectively.

There was $76.1 million of unrecognized stock-based compensation expense related to employees’, non-employees’, and directors’ options that is expected to be recognized over a weighted-average period of 2.9 years as of March 31, 2025.


	Three Months Ended March 31,
	2025			2024
	Number of Shares	Weighted-Average Grant Date Fair Value		Number of Shares	Weighted-Average Grant Date Fair Value
Non-vested RSAs, beginning of period	22,200	$	78.89	44,400	$	78.89
Granted	—			—
Vested	(11,925)	$	78.89	(14,523)	$	78.89
Surrendered for taxes	(10,275)	$	78.89	(7,677)	$	78.89
Non-vested RSAs, end of period	—	$	—	22,200	$	78.89


	Three Months Ended March 31,
	2025			2024
	Number of Shares	Weighted-Average Grant Date Fair Value		Number of Shares	Weighted-Average Grant Date Fair Value
Non-vested RSUs, beginning of period	308,096	$	135.22	160,900	$	81.91
Granted	130,556	$	179.25	223,890	$	159.59
Vested	(84,097)	$	129.56	(40,075)	$	81.91
Forfeited	(5,798)	$	154.56	(14,383)	$	86.27
Non-vested RSUs, end of period	348,757	$	152.75	330,332	$	134.37

There was $51.8 million of unrecognized stock-based compensation expense related to employees’ RSU awards that is expected to be recognized over a weighted-average period of 3.3 years as of March 31, 2025.


	Three Months Ended March 31,
	2025			2024
	Number of Shares	Weighted-Average Grant Date Fair Value		Number of Shares	Weighted-Average Grant Date Fair Value
Non-vested PSUs, beginning of period	137,500	$	145.37	50,000	$	81.91
Granted	—	$	—	112,500	$	159.47
Vested	(81,250)	$	135.61	(25,000)	$	81.91

Forfeited	—	$	—	—	$	—
Non-vested PSUs, end of period	56,250	$	159.47	137,500	$	145.37

PSUs vest ratably over two years based upon continued service through the vesting date and the achievement of specific regulatory and commercial performance criteria as determined by the Compensation Committee of the Company’s Board of Directors and were met by the end of the year in which the PSU awards were granted.

There was $8.2 million of unrecognized stock-based compensation expense related to employees’ PSU awards that is expected to be recognized over a weighted-average period of 0.9 years as of March 31, 2025.

The Company recorded stock-based compensation expense, net related to its stock options, RSAs, RSUs and PSUs in the condensed consolidated statements of operations and comprehensive income (loss) for the three months ended March 31, 2025 and 2024 as follows:


	Three Months Ended March 31,
(in thousands)	2025		2024
Research and development	$	2,469	$	1,868
Selling, general and administrative	11,009		7,431
Total stock-based compensation	$	13,478	$	9,299

The Company capitalized stock-based compensation associated with the allocation of labor costs related to work performed to manufacture VYJUVEK of $969 thousand and $724 thousand for the three months ended March 31, 2025 and 2024.