SEC Filing | Editas Medicine

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ________

Commission File Number 001-37687

EDITAS MEDICINE, INC.

(Exact name of registrant as specified in its charter)


Delaware (State or other jurisdiction of incorporation or organization)		46-4097528 (I.R.S. Employer Identification No.)

11 Hurley Street Cambridge, Massachusetts (Address of principal executive offices)		02141 (Zip Code)

(617) 401-9000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.0001 par value per share	EDIT	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	⌧	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ⌧

The number of shares of Common Stock outstanding as of July 28, 2023 was 81,632,619.

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Editas Medicine, Inc.

TABLE OF CONTENTS


		Page

PART I. FINANCIAL INFORMATION		3

Item 1.	Financial Statements (unaudited)	3
	Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022	3
	Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2023 and 2022	4
	Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2023 and 2022	5
	Condensed Consolidated Statements of Stockholders’ Equity for the three and six months ended June 30, 2023 and 2022	6
	Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26
Item 4.	Controls and Procedures	26

PART II. OTHER INFORMATION		28

Item 1.	Legal Proceedings	28
Item 1A.	Risk Factors	28
Item 5.	Other Information	28
Item 6.	Exhibits	29

Signatures		30

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

Editas Medicine, Inc.

Condensed Consolidated Balance Sheets

(unaudited)

(amounts in thousands, except share and per share data)


	June 30,		December 31,
	2023		2022
ASSETS
Current assets:
Cash and cash equivalents	$	220,817	$	141,522
Marketable securities		211,151		202,752
Accounts receivable		2,286		5,145
Prepaid expenses and other current assets		6,724		7,335
Total current assets		440,978		356,754
Marketable securities		48,065		93,097
Property and equipment, net		12,846		15,569
Right-of-use assets		34,811		43,648
Restricted cash and other non-current assets		5,253		5,253
Total assets	$	541,953	$	514,321
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	8,066	$	9,511
Accrued expenses		27,896		31,296
Deferred revenue, current		8,221		8,221
Operating lease liabilities		10,330		11,082
Total current liabilities		54,513		60,110
Operating lease liabilities, net of current portion		26,856		32,864
Deferred revenue, net of current portion		60,667		60,667
Total liabilities		142,036		153,641
Stockholders’ equity
Preferred stock, $0.0001 par value per share: 5,000,000 shares authorized; no shares issued or outstanding		—		—
Common stock, $0.0001 par value per share: 195,000,000 shares authorized; 81,616,909 and 68,847,382 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively		8		7
Additional paid-in capital		1,569,651		1,442,405
Accumulated other comprehensive loss		(2,285)		(3,601)
Accumulated deficit		(1,167,457)		(1,078,131)
Total stockholders’ equity		399,917		360,680
Total liabilities and stockholders’ equity	$	541,953	$	514,321

The accompanying notes are an integral part of the condensed consolidated financial statements.

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Editas Medicine, Inc.

Condensed Consolidated Statements of Operations

(unaudited)

(amounts in thousands, except share and per share data)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
Collaboration and other research and development revenues	$	2,887	$	6,362	$	12,738	$	13,134
Operating expenses:
Research and development		29,779		43,659		67,583		81,635
General and administrative		17,202		16,937		40,211		36,483
Total operating expenses		46,981		60,596		107,794		118,118
Operating loss		(44,094)		(54,234)		(95,056)		(104,984)
Other income, net:
Other (expense) income, net		(7)		235		(1,590)		1
Interest income, net		3,811		546		7,320		1,015
Total other income, net		3,804		781		5,730		1,016
Net loss	$	(40,290)	$	(53,453)	$	(89,326)	$	(103,968)
Net loss per share, basic and diluted	$	(0.56)	$	(0.78)	$	(1.27)	$	(1.52)
Weighted-average common shares outstanding, basic and diluted		71,376,678		68,640,858		70,157,204		68,563,348

The accompanying notes are an integral part of the condensed consolidated financial statements.

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Editas Medicine, Inc.

Condensed Consolidated Statements of Comprehensive Loss

(unaudited)

(amounts in thousands)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
Net loss	$	(40,290)	$	(53,453)	$	(89,326)	$	(103,968)
Other comprehensive loss:
Unrealized (loss) gain on marketable debt securities		(6)		(878)		1,316		(2,894)
Comprehensive loss	$	(40,296)	$	(54,331)	$	(88,010)	$	(106,862)

The accompanying notes are an integral part of the condensed consolidated financial statements.

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Editas Medicine, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(unaudited)

(amounts in thousands, except share data)


						Accumulated
				Additional		Other		Other		Total
	Common Stock			Paid-In		Comprehensive		Accumulated		Stockholders’
	Shares	Amount		Capital		(Loss) Gain		Deficit		Equity
Balance at December 31, 2022	68,847,382	$	7	$	1,442,405	$	(3,601)	$	(1,078,131)	$	360,680
Exercise of stock options			—				—		—		—
Vesting of restricted common stock awards	146,209		—		—		—		—		—
Stock-based compensation expense	—		—		4,507		—		—		4,507
Unrealized gain on marketable debt securities	—		—		—		1,322		—		1,322
Net loss	—		—		—		—		(49,036)		(49,036)
Balance at March 31, 2023	68,993,591	$	7	$	1,446,912	$	(2,279)	$	(1,127,167)	$	317,473
Issuance of common stock from public offering, net commissions, underwriting discounts and offering costs	12,500,000		1		117,078		—		—		117,079
Exercise of stock options	3,122		—		11		—		—		11
Stock-based compensation expense	—		—		5,215		—		—		5,215
Vesting of restricted common stock awards	64,492		—		—		—		—		—
Issuance of common stock under employee stock purchase plan	55,704		—		435		—		—		435
Unrealized loss on marketable debt securities	—		—		—		(6)		—		(6)
Net loss	—		—		—		—		(40,290)		(40,290)
Balance at June 30, 2023	81,616,909	$	8	$	1,569,651	$	(2,285)	$	(1,167,457)	$	399,917



						Accumulated
				Additional		Other		Other		Total
	Common Stock			Paid-In		Comprehensive		Accumulated		Stockholders’
	Shares	Amount		Capital		(Loss) Gain		Deficit		Equity
Balance at December 31, 2021	68,435,257	$	7	$	1,411,827	$	(493)	$	(857,699)	$	553,642
Exercise of stock options	12,573		—		218		—		—		218
Vesting of restricted common stock awards	154,834		—		—		—		—		—
Stock-based compensation expense	—		—		11,431		—		—		11,431
Unrealized loss on marketable debt securities	—		—		—		(2,016)		—		(2,016)
Net loss	—		—		—		—		(50,515)		(50,515)
Balance at March 31, 2022	68,602,664	$	7	$	1,423,476	$	(2,509)	$	(908,214)	$	512,760
Exercise of stock options	20		—		—		—		—		—
Vesting of restricted common stock awards	77,884		—		—		—		—		—
Stock-based compensation expense	—		—		6,618		—		—		6,618
Issuance of common stock under employee stock purchase plan	37,866		—		367		—		—		367
Unrealized loss on marketable debt securities	—		—		—		(878)		—		(878)
Net loss	—		—		—		—		(53,453)		(53,453)
Balance at June 30, 2022	68,718,434	$	7	$	1,430,461	$	(3,387)	$	(961,667)	$	465,414

The accompanying notes are an integral part of the condensed consolidated financial statements.

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Editas Medicine, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

(amounts in thousands)


	Six Months Ended
	June 30,
	2023		2022
Cash flow from operating activities
Net loss	$	(89,326)	$	(103,968)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense		9,722		18,049
Depreciation		3,084		3,156
Loss on disposal of fixed assets		1,583		—
Other non-cash items, net		(1,473)		57
Changes in operating assets and liabilities:
Accounts receivable		2,859		(446)
Prepaid expenses and other current assets		611		(908)
Right-of-use assets		8,837		5,507
Other non-current assets		—		(719)
Accounts payable		(1,256)		1,252
Accrued expenses		(2,360)		402
Deferred revenue		—		(3,333)
Operating lease liabilities		(6,760)		(6,121)
Net cash used in operating activities		(74,479)		(87,072)
Cash flow from investing activities
Purchases of property and equipment		(3,173)		(2,880)
Proceeds from the sale of equipment		—		18
Purchases of marketable securities		(68,183)		(183,519)
Proceeds from maturities of marketable securities		107,605		238,750
Net cash provided by investing activities		36,249		52,369
Cash flow from financing activities
Proceeds from offering of common stock, net of issuance costs		117,079		—
Proceeds from exercise of stock options		11		218
Proceeds from issuance of common stock under employee stock purchase plan		435		367
Net cash provided by financing activities		117,525		585
Net increase (decrease) in cash, cash equivalents, and restricted cash		79,295		(34,118)
Cash, cash equivalents, and restricted cash, beginning of period		145,399		207,396
Cash, cash equivalents, and restricted cash, end of period	$	224,694	$	173,278
Supplemental disclosure of cash and non-cash activities:
Fixed asset additions included in accounts payable and accrued expenses	$	212	$	127
Offering expenses included in accounts payable and accrued expenses		230		—
Cash paid in connection with operating lease liabilities		5,738		7,089
Right-of-use assets obtained in exchange of operating lease obligations		1,069		—

The accompanying notes are an integral part of the condensed consolidated financial statements.

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Editas Medicine, Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

1. Nature of Business

Editas Medicine, Inc. (the “Company”) is a clinical stage genome editing company dedicated to developing potentially transformative genomic medicines to treat a broad range of serious diseases. The Company was incorporated in the state of Delaware in September 2013. Its principal offices are in Cambridge, Massachusetts.

Since its inception, the Company has devoted substantially all of its efforts to business planning, research and development, recruiting management and technical staff, and raising capital. The Company has primarily financed its operations through various equity financings, payments received under a research collaboration with Juno Therapeutics, Inc., a wholly-owned subsidiary of the Bristol-Myers Squibb Company (“BMS”), and payments received under a strategic alliance and option agreement with Allergan Pharmaceuticals International Limited, which was terminated in August 2020.

The Company is subject to risks common to companies in the biotechnology industry, including but not limited to, risks of failure of preclinical studies and clinical trials, the need to obtain marketing approval for any drug product candidate that it may identify and develop, the need to successfully commercialize and gain market acceptance of its product candidates, dependence on key personnel, protection of proprietary technology, compliance with government regulations, development by competitors of technological innovations and ability to transition from pilot-scale manufacturing to large-scale production of products.

Liquidity

In June 2023, the Company completed a public offering in which it sold 12,500,000 shares of its common stock and received net proceeds of approximately $117.1 million after deducting underwriting discounts and commissions and other offering costs. In May 2021, the Company entered into a common stock sales agreement with Cowen and Company, LLC (“Cowen”), under which the Company from time to time can issue and sell shares of its common stock through Cowen in at-the-market offerings for aggregate gross sale proceeds of up to $300.0 million (the “ATM Facility”). As of June 30, 2023, the Company has not sold any shares of its common stock under the ATM Facility.

The Company has incurred annual net operating losses in every year since its inception. The Company expects that its existing cash, cash equivalents and marketable securities at June 30, 2023 will enable it to fund its operating expenses and capital expenditure requirements into the third quarter of 2025. The Company had an accumulated deficit of $1.2 billion at June 30, 2023, and will require substantial additional capital to fund its operations. The Company has never generated any product revenue. There can be no assurance that the Company will be able to obtain additional debt or equity financing or generate product revenue or revenues from collaborative partners, on terms acceptable to the Company, on a timely basis or at all. The failure of the Company to obtain sufficient funds on acceptable terms when needed could have a material adverse effect on the Company’s business, results of operations, and financial condition.

2. Summary of Significant Accounting Policies

Unaudited Interim Financial Information

The condensed consolidated financial statements of the Company included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) have been condensed or omitted from this report, as is permitted by such rules and regulations. Accordingly, these condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 (the “Annual Report”).

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The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Editas Securities Corporation and Editas Medicine, LLC. All intercompany transactions and balances of the subsidiaries have been eliminated in consolidation. In the opinion of management, the information furnished reflects all adjustments, all of which are of a normal and recurring nature, necessary for a fair presentation of the results for the reported interim periods. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. The three months ended June 30, 2023 and 2022 are referred to as the second quarter of 2023 and 2022, respectively. The results of operations for interim periods are not necessarily indicative of results to be expected for the full year or any other interim period.

Summary of Significant Accounting Policies

The Company’s significant accounting policies are described in Note 2, “Summary of Significant Accounting Policies,” to the consolidated financial statements included in the Annual Report. There have been no material changes to the significant accounting policies previously disclosed in the Annual Report.

3. Cash Equivalents and Marketable Securities

Cash equivalents and marketable securities consisted of the following at June 30, 2023 (in thousands):


			Allowance		Gross		Gross
	Amortized		for Credit		Unrealized		Unrealized		Fair
June 30, 2023	Cost		Losses		Gains		Losses		Value
Cash equivalents and marketable securities:
Money market funds	$	220,817	$	—	$	—	$	—	$	220,817
Government agency securities		182,221		—		—		(1,829)		180,392
Corporate notes/bonds		49,454		—		—		(413)		49,041
Commercial paper		22,402		—		—		(32)		22,370
U.S. Treasuries		7,424		—		—		(11)		7,413
Total	$	482,318	$	—	$	—	$	(2,285)	$	480,033

Cash equivalents and marketable securities consisted of the following at December 31, 2022 (in thousands):


			Allowance		Gross		Gross
	Amortized		for Credit		Unrealized		Unrealized		Fair
December 31, 2022	Cost		Losses		Gains		Losses		Value
Cash equivalents and marketable securities:
Government agency securities	$	161,902	$	—	$	11	$	(2,556)	$	159,357
Money market funds		141,522		—		—		—		141,522
Corporate notes/bonds		57,575		—		2		(694)		56,883
U.S. Treasuries		50,019		—		3		(229)		49,793
Commercial paper		29,954		—		3		(141)		29,816
Total	$	440,972	$	—	$	19	$	(3,620)	$	437,371

As of June 30, 2023, the Company did not hold any marketable securities that had been in an unrealized loss position for more than twelve months. Furthermore, the Company has determined that there were no material changes in the credit risk of the debt securities. As of June 30, 2023, the Company holds 30 securities with an aggregate fair value of $48.1 million that had remaining maturities greater than one year.

There were no realized gains or losses on available-for-sale securities during the six months ended June 30, 2023 or 2022.

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4. Fair Value Measurements

Assets measured at fair value on a recurring basis as of June 30, 2023 were as follows (in thousands):


			Quoted Prices		Significant
			in Active		Other		Significant
			Markets for		Observable		Unobservable
	June 30,		Identical Assets		Inputs		Inputs
Financial Assets	2023		(Level 1)		(Level 2)		(Level 3)
Cash equivalents:
Money market funds	$	220,817	$	220,817	$	—	$	—
Marketable securities:
Government agency securities		180,392		—		180,392		—
Corporate notes/bonds		49,041		—		49,041		—
Commercial paper		22,370		—		22,370		—
U.S. Treasuries		7,413		7,413		—		—
Restricted cash and other non-current assets:
Money market funds		3,877		3,877		—		—
Total financial assets	$	483,910	$	232,107	$	251,803	$	—

Assets measured at fair value on a recurring basis as of December 31, 2022 were as follows (in thousands):


			Quoted Prices		Significant
			in Active		Other		Significant
			Markets for		Observable		Unobservable
	December 31,		Identical Assets		Inputs		Inputs
Financial Assets	2022		(Level 1)		(Level 2)		(Level 3)
Cash equivalents:
Money market funds	$	141,522	$	141,522	$	—	$	—
Marketable securities:
Government agency securities		159,357		—		159,357		—
Corporate bonds		56,883		—		56,883		—
U.S. Treasuries		49,793		49,793		—		—
Commercial paper		29,816		—		29,816		—
Restricted cash and other non-current assets:
Money market funds		3,877		3,877		—		—
Total financial assets	$	441,248	$	195,192	$	246,056	$	—

5. Accrued Expenses

Accrued expenses consisted of the following (in thousands):


	As of
	June 30,		December 31,
	2023		2022
External research and development expenses	$	17,976	$	16,452
Employee related expenses		6,412		10,140
Intellectual property and patent related fees		1,527		1,809
Professional service expenses		1,903		1,260
Other expenses		78		1,635
Total accrued expenses	$	27,896	$	31,296

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6. Property and Equipment, net

Property and equipment, net consisted of the following (in thousands):


	As of
	June 30,		December 31,
	2023		2022
Laboratory equipment	$	24,683	$	24,407
Leasehold improvements		9,648		9,761
Computer equipment		875		875
Construction-in-progress		653		1,573
Furniture and office equipment		264		264
Software		215		215
Total property and equipment		36,338		37,095
Less: accumulated depreciation		(23,492)		(21,526)
Property and equipment, net	$	12,846	$	15,569

7. Commitments and Contingencies

In the second quarter of 2023, we entered into a License and Service Agreement pursuant to which we will lease manufacturing space for our continued research and development activities. As of June 30, 2023, the lease has not commenced for accounting purposes and it is not expected to commence until the second quarter of 2024. The lease agreement provides for total remaining lease payments of $87.8 million over a 10-year lease term.

The Company is a party to a number of license agreements under which the Company licenses patents, patent applications and other intellectual property from third parties. As such, the Company is obligated to pay licensors for various costs including upfront licenses fees, annual license fees, certain licensor expense reimbursements, success payments, research funding payments, and milestones triggerable upon certain development, regulatory, and commercial events as well as royalties on future products. These contracts are generally cancellable, with notice, at the Company’s option and do not have significant cancellation penalties. The terms and conditions as well as the accounting analysis for the Company’s significant commitments and contingencies are described in Note 8, “Commitments and Contingencies” to the consolidated financial statements included in the Annual Report. There have been no material changes to the terms and conditions, or the accounting conclusions, previously disclosed in the Annual Report.

Licensor Expense Reimbursement

The Company is obligated to reimburse The Broad Institute, Inc. (“Broad”) and the President and Fellows of Harvard College (“Harvard”) for expenses incurred by each of them associated with the prosecution and maintenance of the patent rights that the Company licenses from them pursuant to the license agreement by and among the Company, Broad and Harvard, including the interference and opposition proceedings involving patents licensed to the Company under the license agreement, and other license agreements between the Company and Broad. As such, the Company anticipates that it has a substantial commitment in connection with these proceedings until such time as these proceedings have been resolved, but the amount of such commitment is not determinable. The Company incurred an aggregate of $1.6 million and $4.6 million in expense during the three and six months ended June 30, 2023, respectively, for such reimbursement. The Company incurred an aggregate of $1.8 million and $3.9 million in expense during the three and six months ended June 30, 2022, respectively, for such reimbursement.

8. Collaboration and Profit-Sharing Agreements

The Company has entered into multiple collaborations, out-licenses and strategic alliances with third parties that typically involve payments to or from the Company, including up-front payments, payments for research and development services, option payments, milestone payments and royalty payments to or from the Company. The terms and conditions as well as the accounting analysis for the Company’s significant collaborations, out-licenses and strategic alliances are described in Note 9, “Collaboration and Profit-Sharing Agreements” to the consolidated financial

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statements included in the Annual Report. There have been no material changes to the terms and conditions, or the accounting conclusions, previously disclosed in the Annual Report.

Collaboration Revenue

As of June 30, 2023, the Company’s contract liabilities were primarily related to the Company’s collaboration with BMS. The following table presents changes in the Company’s accounts receivable and contract liabilities for the six months ended June 30, 2023 (in thousands):


For the six months ended June 30, 2023	Balance at December 31, 2022		Additions		Deductions		Balance at June 30, 2023
Accounts receivable	$	5,145	$	2,141	$	(5,000)	$	2,286
Contract liabilities:
Deferred revenue	$	68,888	$	—	$	—	$	68,888

During the three and six months ended June 30, 2023, the Company did not recognize any collaboration revenue that had been allocated to deferred revenue from BMS.

9. Stock-based Compensation

Total compensation cost recognized for all stock-based compensation awards in the condensed consolidated statements of operations was as follows (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
Research and development	$	2,525	$	3,064	$	4,611	$	6,758
General and administrative		2,690		3,554		5,111		11,291
Total stock-based compensation expense	$	5,215	$	6,618	$	9,722	$	18,049

Restricted Stock Unit Awards

The following is a summary of restricted stock unit awards activity for the six months ended June 30, 2023:


		Weighted
		Average
		Grant Date
		Fair Value
	Shares	Per Share
Unvested restricted stock unit awards as of December 31, 2022	1,499,070	$	18.70
Issued	1,071,802	$	8.79
Vested	(210,701)	$	19.70
Forfeited	(277,083)	$	20.98
Unvested restricted stock unit awards as of June 30, 2023	2,083,088	$	13.20

The restricted stock units issued in the six months ended June 30, 2023 include 331,000 units granted to certain employees that contain performance-based vesting provisions. The Company recognizes the fair value of the performance-based units through the expected achievement date if the performance-based vesting provisions are deemed probable.

As of June 30, 2023, total unrecognized compensation expense related to unvested restricted stock unit awards was $14.7 million, which the Company expects to recognize over a remaining weighted-average period of 2.67 years.

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Stock Options

The following is a summary of stock option activity for the six months ended June 30, 2023: