Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

v3.23.3
Stock-Based Compensation
 9 Months Ended
Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Stock Options
The following table presents, on a weighted average basis, the assumptions used in the Black-Scholes option-pricing model to determine the grant-date fair value of stock options granted during the nine months ended September 30, 2023 and 2022:
Nine Months Ended September 30,
2023 2022
Risk-free interest rate 4.2  % 1.6  %
Expected term (in years) 6.1 6.1
Expected volatility 87.5  % 75.0  %
Expected dividend yield 0.0  % 0.0  %
The following table summarizes the Company’s stock option activity since December 31, 2022 (in thousands, except for share and per share data):
Number of
Shares		 Weighted
Average
Exercise Price
Outstanding as of December 31, 2022
 20,396,824 $ 0.73 
Granted 2,840,421 3.12 
Exercised (1,607,650) 0.38 
Forfeited (566,551) 1.23 
Outstanding as of September 30, 2023
 21,063,044 1.07 
Restricted Stock Units
The following table summarizes the Company's restricted stock units activity since December 31, 2022:
Number of
Shares		 Grant Date Fair
Value
Outstanding as of December 31, 2022
 7,501,945  $ 3.54 
Granted 7,917,033  3.33 
Vested (2,586,184) 3.47 
Forfeited (735,686) 3.62 
Outstanding as of September 30, 2023
 12,097,108  $ 3.41 
Performance Stock Units
The following table summarizes the Company's performance stock units activity since December 31, 2022:
Number of
Shares		 Grant Date Fair
Value
Outstanding as of December 31, 2022
 864,000  $ 2.65 
Granted —  — 
Vested (432,000) 2.65 
Forfeited (46,000) 2.66 
Outstanding as of September 30, 2023
 386,000  $ 2.65 
Finback Common Stock Warrants
In January 2021, the Company granted warrants (the "Finback Common Stock Warrants") to purchase 2,552,913 shares of the Company's Class A common stock at an exercise price of $0.42 per share to Finback Evolv OBH, LLC ("Finback"), a consulting group affiliated with one of the Company's stockholders. The Finback Common Stock Warrants vest upon meeting certain sales criteria as defined in a business development agreement (the "Finback BDA"), which has a term of 3 years. The Finback BDA expired on January 1, 2023 but includes a 1-year "tail period" expiring on January 1, 2024. During the tail period, Finback Common Stock Warrants will continue to vest related to any sale consummated by the Company for which it is determined Finback provided services prior to January 1, 2023 in furtherance of the sale. The Finback Common Stock Warrants expire in January 2031. The Finback Common Stock Warrants are accounted for under ASC 718 Compensation – Stock Compensation as the warrants vest upon certain performance conditions being met.
During the three and nine months ended September 30, 2023, 0 and 830,216 Finback Common Stock Warrants were exercised, respectively. As of September 30, 2023, 273,657 Finback Common Stock Warrants were exercisable at a total aggregate intrinsic value of $1.2 million, and 1,317,327 Finback Common Stock Warrants are unvested and have a total unrecognized grant date fair value of $10.0 million. During the three months ended September 30, 2023 and 2022, the Company recorded $0.8 million and $1.3 million, respectively, of stock-based compensation expense within sales and marketing expense related to the Finback Common Stock Warrants. During the nine months ended September 30, 2023 and 2022, the Company recorded $2.2 million and $2.1 million, respectively, of stock-based compensation expense within sales and marketing expense related to the Finback Common Stock Warrants.
Stock-Based Compensation
Stock-based compensation expense was classified in the condensed consolidated statements of operations and comprehensive loss as follows (in thousands):
Three Months Ended September 30, Nine Months Ended September 30,
2023   2022   2023   2022
Cost of revenue $ 117 $ 227 $ 446 $ 615
Research and development 1,171 1,664 3,246 3,143
Sales and marketing 1,790 2,482 6,296 6,310
General and administrative 2,493 2,152 7,315 5,445
Total stock-based compensation expense $ 5,571 $ 6,525 $ 17,303 $ 15,513