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
10.
Stock-Based Compensation

In connection with the Closing, the Company adopted the 2021 Equity Incentive Plan (the “2021 Plan”) and the 2021 Employee Stock Purchase Plan (“2021 ESPP”). The number of shares available for issuance under the 2021 Plan is increased on the first day of each fiscal year, beginning on January 1, 2022, in an amount as provided in the 2021 Plan. Pursuant to this automatic increase feature of the 2021 Plan, 897,996 shares were added as available for issuance thereunder on January 1, 2023. As of September 30, 2023, 490,623 shares were available for issuance under the 2021 Plan.

The number of shares available for issuance under the 2021 ESPP is increased on the first day of each fiscal year, beginning on January 1, 2022, in an amount as provided in the 2021 ESPP. Pursuant to this automatic increase feature of the 2021 ESPP, 179,599 shares were added as available for issuance thereunder on January 1, 2023. As of September 30, 2023, 603,349 shares were available for issuance under the 2021 ESPP.

The following table summarizes stock option activity under our equity compensation plans:

 

 

Number of
Options

 

 

Weighted-
Average
Exercise
Price

 

 

Weighted-
Average
Remaining
Contractual
Term

 

 

 

 

 

 

 

 

(in years)

 

Options outstanding as of December 31, 2022

 

 

2,389,622

 

 

$

18.52

 

 

 

6.1

 

Granted

 

 

61,446

 

 

$

5.37

 

 

 

 

Exercised

 

 

 

 

$

 

 

 

 

Forfeited, canceled, or expired

 

 

(118,701

)

 

$

36.61

 

 

 

 

Options outstanding as of September 30, 2023

 

 

2,332,367

 

 

$

17.25

 

 

 

5.5

 

Vested and expected to vest at September 30, 2023

 

 

2,332,367

 

 

$

17.25

 

 

 

5.5

 

Exercisable at September 30, 2023

 

 

1,948,878

 

 

$

16.76

 

 

 

5.0

 

 

There were no options exercised during the nine months ended September 30, 2023. During the nine months ended September 30, 2022, the Company received $797 in cash proceeds from options exercised during that period. The weighted-average grant date fair value of options granted during the nine months ended September 30, 2023 was $2.77. There were no options granted during the nine months ended September 30, 2022.

The following table summarizes restricted stock unit ("RSU") activity under the 2021 Plan:

 

 

 

 

 

Number of RSUs

 

 

Weighted Average Grant Date Fair Value per Share

 

Outstanding as of December 31, 2022

 

 

 

 

1,547,256

 

 

$

19.60

 

RSUs granted

 

 

 

 

1,351,789

 

 

$

5.63

 

RSUs vested

 

 

 

 

(603,120

)

 

$

18.87

 

RSUs forfeited

 

 

 

 

(176,300

)

 

$

18.62

 

Outstanding as of September 30, 2023

 

 

 

 

2,119,625

 

 

$

11.04

 

For RSUs with service-based vesting conditions, the fair value is calculated based upon the Company’s closing stock price on the date of grant, and the stock-based compensation expense is recognized over the applicable grant vesting term, generally four years.

As of September 30, 2023, there was
$25,180 of total unrecognized compensation expense related to options and RSUs expected to be recognized over a weighted average-period of 2.23 years.

The following table summarizes the components of total stock-based compensation expense based on roles and responsibilities of the employees within the condensed consolidated statements of operations:

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Cost of revenue

 

$

48

 

 

$

60

 

 

$

173

 

 

$

180

 

Research and development

 

 

957

 

 

 

845

 

 

 

2,510

 

 

 

2,370

 

Sales and marketing

 

 

673

 

 

 

766

 

 

 

1,729

 

 

 

2,117

 

General and administrative

 

 

1,852

 

 

 

1,454

 

 

 

5,104

 

 

 

3,656

 

 

$

3,530

 

 

$

3,125

 

 

$

9,516

 

 

$

8,323