Quarterly report pursuant to Section 13 or 15(d)

Stock Based Compensation

v3.22.2.2
Stock Based Compensation
 9 Months Ended
Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
2021 Incentive Award Plan
The Company’s 2021 Incentive Award Plan (the “2021 Plan”) provides for the Company to grant incentive stock options or nonqualified stock options, restricted stock awards, restricted stock units, performance stock units, and other stock-based awards to employees, officers, directors and non-employees of the Company. A total of 21,177,295 shares of common stock may be issued under the 2021 Plan. As of September 30, 2022 and December 31, 2021, 11,287,459 and 19,511,916 shares, respectively, remained available for future grant under the 2021 Plan. Shares, units, and options that are
expired, forfeited, canceled or otherwise terminated without having been fully exercised will be available for future grant under the 2021 Plan. In addition, shares of common stock that are tendered to the Company by a participant to exercise an award are added to the number of shares of common stock available for future grants.
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, 2022 and 2021:
Nine Months Ended September 30,
2022 2021
Risk-free interest rate 1.6  % 0.7  %
Expected term (in years) 6.1 6.0
Expected volatility 75.0  % 31.4  %
Expected dividend yield 0.0  % 0.0  %
The following table summarizes the Company’s stock option activity since December 31, 2021 (in thousands, except for share and per share data):
Number of
Shares		 Weighted
Average
Exercise Price		 Weighted
Average
Remaining
Contractual Term		 Aggregate
Intrinsic Value
(in years)
Outstanding as of December 31, 2021
 20,769,130 $ 0.39 
Granted 2,262,925 3.49 
Exercised (1,278,014) 0.43 
Forfeited (726,201) 0.42 
Outstanding as of September 30, 2022
 21,027,840 0.72  7.3 $ 32,445 
Vested and expected to vest as of September 30, 2022
 21,027,840 $ 0.72  7.3 $ 32,445 
Options exercisable as of September 30, 2022
 13,190,147 $ 0.38  6.7 $ 22,981 
The weighted average exercise price of the stock options granted in 2022 in the table above has been updated to align with the terms of the stock option awards.
The aggregate intrinsic value of options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock for those options that had exercise prices lower than the fair value of the Company’s common stock.
Restricted Stock Units
The following table summarizes the Company's restricted stock units activity since December 31, 2021:
Number of
Shares		 Grant Date Fair
Value
Outstanding as of December 31, 2021
 1,951,924  $ 6.76 
Granted 7,136,963  3.30 
Vested (414,478) 7.02 
Cancelled (1,338,230) 5.24 
Outstanding as of September 30, 2022
 7,336,179  $ 3.65 
During the three and nine months ended September 30, 2022, the aggregate grant-date fair value of restricted stock units issued under the 2021 Plan was $0.6 million and $23.5 million, respectively. Restricted stock units generally vest ratably over a three year period subject to the grantee's continued service through the applicable vesting date.
Performance Stock Units
The following table summarizes the Company's performance stock units activity since December 31, 2021:
Number of
Shares		 Grant Date Fair
Value
December 31, 2021 —  $ — 
Granted 947,000  2.65 
Vested —  — 
Canceled (58,000) 2.65 
September 30, 2022 889,000  $ 2.65 
During the three and nine months ended September 30, 2022, the aggregate grant-date value of performance stock units issued under the 2021 Plan was less than $0.1 million and $2.5 million, respectively. Based upon the terms of the award agreements, 50% of the applicable units shall vest on January 1, 2023 and 50% on January 1, 2024, provided that the Company has achieved its annual bookings goal for fiscal year 2022 and subject to the grantee’s continued service through the applicable vesting date.
2021 Employee Stock Purchase Plan
As of September 30, 2022 and December 31, 2021, 3,435,748 shares of the Company’s common stock remained available for future issuance under the 2021 Employee Stock Purchase Plan. The Company’s board of directors may from time to time grant or provide for the grant to eligible employees of options to purchase common stock under the 2021 Employee Stock Purchase Plan during a specific offering period. As of September 30, 2022, no offerings have been approved.
Finback Common Stock Warrants
The Company utilized a Black-Scholes pricing model to determine the grant-date fair value of the Finback Common Stock Warrants. The assumptions used are presented in the following table:
Warrants - Black Scholes
Risk-free interest rate $ 0.4  %
Expected term (in years) 3.0
Expected volatility 23.9  %
Expected dividend yield 0.0  %
On the date of issuance, the total value of the Finback Common Stock Warrants was $19.5 million.
As of September 30, 2022, 700,575 Finback Common Stock Warrants were exercisable at a total aggregate intrinsic value of $1.2 million. The remaining 1,852,338 Finback Common Stock Warrants are unvested and have a total unrecognized grant date fair value of $14.1 million. As of September 30, 2022, none of the Finback Common Stock Warrants had been exercised. The Company recognizes compensation expense for the Finback Common Stock Warrants when the warrants become vested based on meeting the certain sales criteria. During the three and nine months ended September 30, 2022, the Company recorded $1.3 million and $2.1 million, respectively, of stock-based compensation expense within sales and marketing expense related to the 2021 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,
2022   2021   2022   2021
Cost of revenue $ 227 $ 66 $ 615 $ 91
Research and development 1,664 319 3,143 396
Sales and marketing 2,482 3,226 6,310 4,305
General and administrative 2,152 1,044 5,445 1,240
Total stock-based compensation expense $ 6,525 $ 4,655 $ 15,513 $ 6,032
Stock-based compensation expense by award type recognized in the condensed consolidated statements of operations and comprehensive loss was as follows (in thousands):
Three Months Ended September 30, Nine Months Ended September 30,
2022 2021 2022 2021
Stock options $ 458 $ 123 $ 1,151 $ 565
Earn-out shares 1,832 3,269 5,435 3,269
Warrants 1,285 1,012 2,126 1,806
RSUs and PSUs 2,950 251 6,801 392
Total stock-based compensation expense $ 6,525 $ 4,655 $ 15,513 $ 6,032