v3.26.1
Stockholders' Equity
 3 Months Ended
Mar. 31, 2026
Equity [Abstract]  
Stockholders' Equity

Note 8 — Stockholders’ Equity

Equity Incentive Plan

Our 2004 Plan provides for us to grant incentive stock options, non-statutory stock options, restricted stock, stock appreciation rights, restricted stock units, performance shares and performance units to employees, directors, and consultants. We may grant options for terms of up to ten years at prices not lower than 100% of the fair market value of our common stock on the date of grant. Options granted to new employees generally vest 25% after one year and monthly thereafter over a period of four years. Options granted to existing employees generally vest monthly over a period of four years.

Our annual grant of stock-based compensation takes place during the first quarter of each year. Our stock options and restricted stock units granted during the first quarter of 2026 were as follows:

 

 

Grants

 

 

Weighted
Average Grant Date Fair Value per Share

 

 Stock options

 

 

1,518,443

 

 

$

60.20

 

 Restricted stock units

 

 

1,460,603

 

 

$

60.16

 

As of March 31, 2026, the total authorized shares under the 2004 Plan available for grant was 3.8 million.

Total stock-based compensation expense was recorded in the condensed consolidated statements of operations and comprehensive loss, and allocated as follows (in thousands):

 

 

Three Months Ended

 

 

 

 

March 31, 2026

 

 

March 31, 2025

 

 

 Research and development

 

$

13,581

 

 

$

11,678

 

 

 General and administrative

 

 

16,813

 

 

 

11,871

 

 

 

 

$

30,394

 

 

$

23,549

 

 

For the three months ended March 31, 2026, we capitalized approximately $0.4 million of stock based compensation into inventories.

Performance Stock Units

During 2025 through the first quarter of 2026, the Compensation Committee granted a total of 756,616 performance stock units ("PSUs") to certain employees with a grant date fair value ranging from $44.36 to $63.75 per unit. The fair value of the PSUs was determined on the grant date based on the fair value of the Company’s common stock at such time. The PSU awards are subject to performance goals and will be earned as to a pre-determined fixed number of shares subject to the certification by the Compensation and Talent Committee of the Company’s Board of Directors (the “Compensation Committee”) that the Company has achieved one or more of the relevant performance goals, in each case vesting as to 50% of the earned shares on applicable Compensation Committee certification date and as to the remaining 50% of the earned shares following the one-year anniversary of the applicable Compensation Committee certification date.

The Company recognized expense for the PSUs of $0.5 million and $1.2 million for the three months ended March 31, 2026 and 2025, respectively. The decrease year over year was due to our Prescription Drug User Fee Act ("PDUFA") target action date for NDA for aficamten in oHCM was extended to December 2025. This resulted in a revision of the PSU assumptions and a reduction of expense that impacted the first quarter of 2026. There was $13.1 million of unamortized stock-based compensation related to the portion of PSUs vesting that is deemed probable as of March 31, 2026.

Controlled Equity Offering Sales Agreement

On February 27, 2025, we entered into an Open Market Sale AgreementSM with Jefferies LLC under which we may offer and sell, from time to time, at our sole discretion, shares of common stock in “at the market offerings” pursuant to Rule 415(a)(4) under the Securities Act of 1933 through Jefferies LLC, as sales agent. As of March 31, 2026, we have not sold any shares of common stock under the Open Market Sale AgreementSM with Jefferies LLC.