Quarterly report pursuant to Section 13 or 15(d)

Equity Incentive Plans and Stock-Based Compensation

v3.23.2
Equity Incentive Plans and Stock-Based Compensation
 6 Months Ended
Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Equity Incentive Plans and Stock-Based Compensation Equity Incentive Plans and Stock-Based Compensation
As of June 30, 2023, the Company had a remaining allocated reserve of 29,557,352 shares of its common stock for issuance under its 2021 Equity Incentive Plan (the “2021 EIP”), which provides for the granting of stock options, restricted stock units (“RSUs”) and stock appreciation rights to employees, directors, and consultants of the Company. As of June 30, 2023, the Company had an allocated reserve of 7,371,214 shares of its common stock for issuance under its 2021 Employee Stock Purchase Plan (“2021 ESPP”). As of June 30, 2023, the Company had not begun any offering periods for the 2021 ESPP.
Stock options
Activity under the 2021 EIP is set forth below:
Options Weighted-Average Exercise Price Weighted-Average Remaining
Contractual Term
in years
(In thousands) (Per share data) (Years)
Outstanding as of December 31, 2021
21,191  $ 0.58  8.2
Granted —  $ — 
Exercised (1,547) $ 0.36 
Forfeited or expired (107) $ 5.67 
Outstanding as of June 30, 2022
19,537  $ 0.57  7.4
Options vested and expected to vest as of June 30, 2022
 19,537  $ 0.57 
Vested and exercisable as of June 30, 2022
 10,345  $ 0.66 
Outstanding as of December 31, 2022
16,960  $ 0.54  7.3
Granted —  $ — 
Exercised (1,296) $ 0.29 
Forfeited or expired (407) $ 0.62 
Outstanding as of June 30, 2023
15,257  $ 0.56  6.7
Options vested and expected to vest as of June 30, 2023
 15,257  $ 0.56 
Vested and exercisable as of June 30, 2023
 11,559  $ 0.64 
The aggregate intrinsic value of options outstanding was $27.3 million and $24.4 million, respectively, as of June 30, 2023 and December 31, 2022. Intrinsic value of options exercised for the six months ended June 30, 2023 and 2022 was $3.8 million and $5.0 million, respectively. The total grant date fair value of options vested was $0.4 million and $1.1 million for the six months ended June 30, 2023 and 2022, respectively.
As of June 30, 2023, total unrecognized compensation cost related to options was $0.6 million related to 3.7 million unvested options and is expected to be recognized over a weighted-average period of 1.3 years.
For the six months ended June 30, 2023, there were no options granted.
Restricted Stock Units
The fair value of RSUs under the Company’s 2021 EIP is estimated using the value of the Company’s common stock on the date of grant.
The following table summarizes outstanding and expected to vest RSUs as of June 30, 2023 and 2022 and their activity during the six months ended June 30, 2023 and 2022:
Number of Shares Weighted-Average Grant Date Fair Value Aggregate Intrinsic Value
(In thousands) (Per share data) (In thousands)
Balance as of December 21, 2021 4,041  $ 7.26  $ 31,563 
Granted 1,489  4.87  7,334 
Released (130) 7.21  789 
Cancelled (44) 7.26  259 
Balance as of June 30, 2022 5,356  $ 6.60  $ 7,391 
Expected to vest as of June 30, 2022 5,356  $ 6.60  $ 7,391 
Balance as of December 31, 2022
 9,623  $ 4.47  $ 17,225 
Granted 5,693  2.11  12,024 
Released (1,640) 3.83  3,635 
Cancelled (1,449) 4.27  3,531 
Balance as of June 30, 2023
12,227  $ 3.48  $ 26,411 
Expected to vest as of June 30, 2023
 12,227  $ 3.48  $ 26,411 
The aggregate intrinsic value of outstanding RSUs is calculated based on the closing price of the Company’s common stock as of the date outstanding. As of June 30, 2023, there was $37.3 million of unrecognized compensation cost related to 12.2 million unvested RSUs, which is expected to be recognized over a weighted average period of approximately 2.7 years. As of June 30, 2022, there was $31.0 million of unrecognized compensation cost related to 5.4 million unvested RSUs, which is expected to be recognized over a weighted average period of approximately 3.3 years.
Earnout Shares - Employees
The Earnout Shares issuable to holders of employee stock options are accounted as stock-based compensation expense as they are subject to forfeiture based on the satisfaction of certain employment conditions. The estimated fair values of the Earnout Shares associated with vested stock options are recognized as an expense and determined by the Monte Carlo simulation valuation model using a distribution of potential outcomes on a monthly basis over the five-year earnout period. The portion of the Earnout Shares associated with unvested stock options are recognized as an expense and considers the vesting continuing employment requirements.
Stock-based Compensation Expense
The following sets forth the total stock-based compensation expense by type of award included in the statements of operations:
Three Months Ended June 30, Six Months Ended June 30,
2023 2022 2023 2022
(In thousands)
Restricted stock units $ 4,745  $ 2,550  $ 8,803  $ 4,990 
Stock options 119  484  868  1,059 
Earnout shares - employees 1,671  1,942  3,100  3,884 
$ 6,535  $ 4,976  $ 12,771  $ 9,933 
The following sets forth the total stock-based compensation expense for the stock options and RSUs included in the statements of operations:
Three Months Ended June 30, Six Months Ended June 30,
2023 2022 2023 2022
(In thousands)
Research and development $ 3,056  $ 2,488  $ 5,989  $ 5,079 
Selling and marketing 1,586  1,142  3,081  2,255 
General and administrative 1,893  1,346  3,701  2,599 
$ 6,535  $ 4,976  $ 12,771  $ 9,933