Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Incentive Plans

v3.22.1
Stock-Based Incentive Plans
 3 Months Ended
Mar. 31, 2022
Share-based Payment Arrangement [Abstract]  
Stock-Based Incentive Plans Stock-Based Incentive Plans
The Company maintains two share-based incentive plans: the Axogen, Inc. Amended and Restated 2019 Long-Term Incentive Plan, (“2019 Plan”), and the Axogen 2017 Employee Stock Purchase Plan (“2017 ESPP”). As of March 31, 2022, 749,538 shares of common stock were available for issuance under the 2019 Plan.The Company recognized stock-based compensation expense, which consisted of compensation expense related to stock options, PSUs and RSUs based on the value of share-based payment awards that are ultimately expected to vest during the period and stock-based compensation expense of $2,678 and $2,694 for the three months ended March 31, 2022 and 2021, respectively.
A summary of the stock option activity is as follows:
Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands)
Outstanding, December 31, 2021 3,194,738  $15.65  6.45 $ 2,236 
Granted 999,877  $9.22 
Exercised (20,750) $4.69 
Cancelled (56,889) $16.61 
Outstanding, March 31, 2022 4,116,976  $14.13  6.99 $ 1,144 
Exercisable, March 31, 2022 2,085,998  $14.78  4.87 $ 1,144 
The Company used the following weighted-average assumptions for options granted during the three months ended March 31, 2022:
Expected term (in years) 6.12
Expected volatility 60.74   %
Risk free rate 2.15   %
Expected dividends —   %
As of March 31, 2022, there was approximately $11,152 of total unrecognized compensation costs related to unvested stock options. These costs are expected to be recognized over a weighted-average period of 2.88 years.
Restricted and Performance Stock Units
A summary of the restricted and performance stock unit activity is as follows:
Outstanding Stock Units
Stock Units Weighted-Average Fair Value at Date of Grant per Share Weighted Average Remaining Vesting Life Aggregate Intrinsic Value (in thousands)
Unvested, December 31, 2021 1,730,765  $ 18.45  1.51 $ 19,633 
Granted 1,766,609  $ 8.27 
Released (215,287) $ 13.63 
Forfeited (102,153) $ 17.35 
Unvested, March 31, 2022 3,179,934  $ 13.15  2.23 $ 25,249 
Performance Stock Units
At March 31, 2022, the total future stock compensation expense related to non-vested performance awards at maximum target payout is expected to be approximately $6,623. As of March 31, 2022, there was approximately$23,818 of total unrecognized compensation costs related to both the PSU and RSU unvested awards. The Company expects to recognize these costs over a weighted-average period of 3.17 years.

On March 16, 2022, the Compensation Committee of the Board of Directors approved PSUs that were tied to 2022, 2023 and 2024 revenue (the “2022 PSU award.”) The 2022 PSU award consists of a targeted award of 526,467 shares with a payout ranging from 0% to 150% upon achievement of specific revenue goals.
Employee Stock Purchase Plan
The Company also maintains the 2017 ESPP, which allows eligible employees to acquire shares of the Company’s common stock through payroll deductions at a discount to market price. A total of 600,000 shares of the Company’s common stock are authorized for issuance under the 2017 ESPP, and as of March 31, 2022, 223,678 shares remain available for issuance.