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Stockholders’ Deficit and Stock-Based Compensation
 3 Months Ended
Mar. 31, 2024
Equity [Abstract]  
Stockholders’ Deficit and Stock-Based Compensation Stockholders’ Deficit and Stock-Based Compensation
2014 EIP
On January 1, 2024, the number of shares of common stock reserved for issuance under the 2014 EIP increased by 3.5 million shares. For the three months ended March 31, 2024, 3.0 million shares of stock awards were granted under the 2014 EIP. As of March 31, 2024, 5.6 million shares were available for issuance under the 2014 EIP.
2014 IN
For the three months ended March 31, 2024, 0.2 million shares of stock awards were granted under the 2014 IN. As of March 31, 2024, 0.9 million shares were available for issuance under the 2014 IN.
HintMD Plan
For the three months ended March 31, 2024, no stock options or awards were granted under the HintMD Plan. As of March 31, 2024, 0.1 million shares were available for issuance under the HintMD Plan.
2014 ESPP
On January 1, 2024, the number of shares of common stock reserved for issuance under the 2014 ESPP increased by 0.3 million shares. As of March 31, 2024, 2.0 million shares were available for issuance under the 2014 ESPP.
Net Loss per Share
Our basic net loss per share from continuing operations is calculated by dividing the net loss from continuing operations by the weighted average number of shares of common stock outstanding for the period. Our basic net loss per share from discontinued operations is calculated by dividing the net loss from discontinued operations by the weighted average number of shares of common stock outstanding for the period. The diluted net loss per share from both continuing and discontinued operations are calculated by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, shares of common stock underlying the 2027 Notes at the initial conversion price, outstanding stock options, unvested stock awards, and shares of common stock expected to be purchased under the 2014 ESPP, are considered common stock equivalents, which were excluded from the computation of diluted net loss per share because including them would have been antidilutive.
Common stock equivalents that were excluded from the computation of diluted net loss per share for both continuing and discontinued operations are presented below:
 March 31,
 20242023
Convertible senior notes8,878,9388,878,938
Unvested RSUs and PSUs5,496,0363,598,879 
Outstanding stock options3,669,8944,541,131
Unvested RSAs and PSAs642,4191,728,551
Shares of common stock expected to be purchased on June 30 under the 2014 ESPP220,451165,079
Follow-On Offering
In March 2024, we completed a follow-on offering, pursuant to which we issued 16.0 million shares of common stock at a price to the public of $6.25 per share (except with respect to 30,000 shares sold and issued to Mark Foley, our president, chief executive officer, and director, at $6.98 per share), for net proceeds of $97.1 million, after underwriting discounts and estimated offering costs.
ATM Offering Programs
On May 10, 2022, we entered into the 2022 ATM Agreement with Cowen. Under the 2022 ATM Agreement, we may sell up to $150.0 million of our common stock. We are not obligated to sell any shares under the 2022 ATM Agreement. Subject to the terms and conditions of the 2022 ATM Agreement, Cowen will use commercially reasonable efforts, consistent with its normal trading and sales practices, applicable state and federal law, rules and regulations and the rules of The Nasdaq Global Market, to sell shares from time to time based upon our instructions, including any price, time or size limits specified by us. We pay Cowen a commission of up to 3.0% of the aggregate gross proceeds from each sale of shares, reimburse legal fees and disbursements and provide Cowen with customary indemnification and contribution rights.
In 2023, we sold 3.2 million shares of common stock under the 2022 ATM Agreement at a weighted average price of $31.90 per share, resulting in net proceeds of $100.0 million after sales agent commissions and offering costs. No shares of common stock were sold during the three months ended March 31, 2024 from the 2022 ATM Agreement.
Stock-based Compensation Expense
The following table summarizes our stock-based compensation expense by line item in our condensed consolidated statements of operations and comprehensive loss:
(in thousands)
Three Months Ended March 31, 2024
Stock-based Compensation before Discontinued Operation Adjustments(1)
Classified as Discontinued Operations (2)
Classified as Continuing Operations
Selling, general and administrative
$7,624 $(240)$7,384 
Research and development
1,366 13 1,379 
Total stock-based compensation expense (exclusive of capitalized stock-based compensation expense)8,990 (227)8,763 
Capitalized stock-based compensation expense388 — 388 
Total stock-based compensation expense$9,378 $(227)$9,151 
(in thousands)
Three Months Ended March 31, 2023
Stock-based Compensation before Discontinued Operation Adjustments(1)
Classified as Discontinued Operations (2)
Classified as Continuing Operations
Selling, general and administrative
$10,265 $(710)$9,555 
Research and development
2,817 (1,420)1,397 
Total stock-based compensation expense (exclusive of capitalized stock-based compensation expense)13,082 (2,130)10,952 
Capitalized stock-based compensation expense1,407 — 1,407 
Total stock-based compensation expense$14,489 $(2,130)$12,359 
(1)Amount represents the stock-based compensation expense before the impact of reclassification for the discontinued operation presentation in the condensed consolidated statements of operations and comprehensive loss.
(2)Amount represents the reclassification for the current and prior periods for the discontinued operation presentation in the condensed consolidated statements of operations and comprehensive loss.