Annual report pursuant to Section 13 and 15(d)

Equity Incentive Plans & Stock-Based Compensation

v3.24.1
Equity Incentive Plans & Stock-Based Compensation
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Equity Incentive Plans & Stock-Based Compensation Plans & Stock-Based Compensation
In 2014, the Company adopted its 2014 equity incentive plan (the “2014 Plan”) which provides for the granting of stock options, restricted stock awards and stock appreciation rights to employees, directors, and consultants of the Company.
Awards granted under the 2014 Plan generally expire 10 years from the date of grant, or earlier if services are terminated. The exercise price of stock options grants shall not be less than 110% of the estimated fair value of the shares on the date of grant, respectively, as determined by the Company’s Board of Directors. Awards generally vest based on continuous service over four years. Awards forfeited, cancelled, or repurchased generally are returned to the pool of shares of common stock available for issuance under the 2021 Plan (as defined below).
In 2021, the Company adopted 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. The Company initially reserved 42,766,043 shares of its common stock for issuance under the 2021 EIP. In March 2022, pursuant to the evergreen provisions of the 2021 EIP, the Company registered an additional 9,161,624 shares of common stock for issuance under the 2021 EIP.
As of December 31, 2023, the Company has an allocated reserve of 49,224,879 shares of its common stock for issuance under the 2021 EIP.
In addition, the Company adopted its 2021 Employee Stock Purchase Plan (“2021 ESPP”). The Company initially reserved 3,663,277 shares of its common stock for issuance under the 2021 ESPP. In March 2022, pursuant to the evergreen provisions of the 2021 ESPP, the Company registered an additional 1,832,324 shares of common stock for issuance under the 2021 ESPP.
As of December 31, 2023, the Company has an allocated reserve of 7,371,214 shares of its common stock for issuance under the 2021 ESPP. As of December 31, 2023, the Company had not begun any offering periods for the 2021 ESPP.
Awards granted under the 2021 EIP generally expire 10 years from the date of grant, or earlier if services are terminated. The exercise price of stock options grants shall not be less than 110% of the estimated fair value of the shares on the date of grant, respectively, as determined by the Company’s Board of Directors. Awards generally vest based on continuous service over 4 years. Awards forfeited, cancelled, or repurchased generally are returned to the pool of shares of common stock available for issuance under the 2021 Plan.
Stock options
Activity under the Company’s stock option plans is set forth below:
Options Weighted-Average
Exercise Price		 Weighted-Average
Remaining
Contractual Term
(In thousands) (Per Share Data) (Years)
Outstanding as of December 31, 2021
 21,191  $0.58 8.2
Granted —  $—
Exercised (2,981) $0.41
Forfeited or expired (1,250) $1.60
Outstanding as of December 31, 2022
16,960  $0.54 7.3
Options vested and expected to vest as of December 31, 2022
 16,960  $0.54
Vested and exercisable as of December 31, 2022
 11,000  $0.65
Outstanding as of December 31, 2022
 16,960  $0.54 7.3
Granted —  $—
Exercised (2,204) $0.26
Forfeited or expired (1,604) $0.29
Outstanding as of December 31, 2023
13,152  $0.61 6.2
Options vested and expected to vest as of December 31, 2023
 13,152  $0.61
Vested and exercisable as of December 31, 2023
 12,267  $0.62
The aggregate intrinsic value of options outstanding was $2.3 million and $24.4 million, respectively, as of December 31, 2023 and 2022. Intrinsic value of options exercised for the years ended December 31, 2023 and 2022 was $4.6 million and $10.9 million, respectively. The total grant date fair value of options vested was $0.7 million and $1.9 million for the years ended December 31, 2023 and 2022, respectively.
As of December 31, 2023, total unrecognized compensation cost related to options was $0.2 million related to 0.9 million unvested options and is expected to be recognized over a weighted-average period of 1.0 year.
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 December 31, 2023 and 2022 and their activity during the year ended December 31, 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 31, 2021
 4,041  $ 7.26  $ 29,476 
Granted
 7,996  3.57  28,338 
Released
 (1,348) 6.26  4,472 
Cancelled
 (971) 6.07  3,521 
Balance as of December 31, 2022
9,718  $ 4.48  $ 17,396 
Expected to vest as of December 31, 2022
 9,718  $ 4.48  $ 17,396 
Balance as of December 31, 2022
 9,718  $ 4.48  $ 17,396 
Granted
 21,324  1.54  32,819 
Released
 (5,527) 3.22  9,154 
Cancelled
 (5,449) 3.56  7,734 
Balance as of December 31, 2023
20,066  $ 1.94  $ 7,978 
Expected to vest as of December 31, 2023
 20,066  $ 1.94  $ 7,978 
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 December 31, 2023, there was $35.8 million of unrecognized compensation cost related to 20.1 million unvested RSUs, which is expected to be recognized over a weighted average period of approximately 3.0 years. As of December 31, 2022, there was $41.3 million of unrecognized compensation cost related to 9.7 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 operating expenses on the statements of operations:
December 31,
2023 2022
(In thousands)
Restricted stock units $ 16,575  $ 10,723 
Stock options 515  1,690 
Earnout shares - employees 5,783  7,737 
$ 22,873  $ 20,150 
The following sets forth the total stock-based compensation expense for the stock options, RSUs, and earnout shares - employees included in operating expenses on the statements of operations:
December 31,
2023 2022
(In thousands)
Research and development $ 11,415  $ 9,849 
Selling and marketing 5,689  4,554 
General and administrative 5,769  5,747 
$ 22,873  $ 20,150 
The following sets forth the total stock-based compensation expense by type of award included in cost of revenue in the statements of operations:
December 31,
2023 2022
(In thousands)
Restricted stock units $ 1,995  $ — 
Stock options 63  — 
$ 2,058  $ — 
The following sets forth the total stock-based compensation expense for the stock options, and RSUs included in cost of revenue on the statements of operations:
December 31,
2023 2022
(In thousands)
Cost of 3D Printer
 $ 1,622  $ — 
Cost of support services
 436  — 
$ 2,058  $ —