Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

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Stock-Based Compensation
 3 Months Ended
Mar. 31, 2024
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 three months ended March 31, 2024 and 2023:
Three Months Ended March 31,
2024 2023
Risk-free interest rate 4.1  % 4.2  %
Expected term (in years) 6.1 6.1
Expected volatility 90.0  % 87.5  %
Expected dividend yield 0.0  % 0.0  %
The following table summarizes the Company’s stock option activity since December 31, 2023 (in thousands, except for share and per share data):
Number of
Shares		 Weighted
Average
Exercise Price
Outstanding as of December 31, 2023
 20,324,528 $ 1.04 
Granted 2,725,625 3.63 
Exercised (519,089) 0.58 
Forfeited (9,059) 0.42 
Outstanding as of March 31, 2024
 22,522,005 1.37 
Restricted Stock Units
The following table summarizes the Company's restricted stock units activity since December 31, 2023:
Number of
Shares		 Grant Date Fair
Value
Outstanding as of December 31, 2023
 13,046,679  $ 3.49 
Granted 6,850,765  3.70 
Vested (3,147,778) 3.35 
Forfeited (289,631) 3.58 
Outstanding as of March 31, 2024
 16,460,035  $ 3.60 
Performance Stock Units
The following table summarizes the Company's performance stock units activity since December 31, 2023:
Number of
Shares		 Grant Date Fair
Value
Outstanding as of December 31, 2023
 380,000  $ 2.64 
Granted —  — 
Vested (380,000) 2.64 
Forfeited —  — 
Outstanding as of March 31, 2024
 —  $ — 
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 had a term of 3 years. The Finback BDA expired on January 1, 2023 but included a 1-year “tail period” expiring on January 1, 2024. During the tail period, the Finback Common Stock Warrants continued to vest related to any sale consummated by the Company for which it was 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.
As of March 31, 2024, 117,423 Finback Common Stock Warrants were exercisable at a total aggregate intrinsic value of $0.5 million, and there were no Finback Common Stock Warrants that are unvested, given the expiration of the 1-year tail period on January 1, 2024. The Company recognizes compensation expense for the Finback Common Stock Warrants when the warrants vest based on meeting the specified sales criteria. During the three months ended March 31, 2024, there was no stock-based compensation expense within sales and marketing expense related to the Finback Common Stock Warrants. During the three months ended March 31, 2023, the Company recorded $0.6 million 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 March 31,
2024   2023
Cost of revenue $ 138 $ 145
Research and development 882 837
Sales and marketing 2,959 1,998
General and administrative 2,431 2,063
Total stock-based compensation expense $ 6,410 $ 5,043