Convertible Preferred Stock and Common Stock

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Convertible Preferred Stock and Common Stock

5. Convertible Preferred Stock and Common Stock

Authorized Shares

The Company’s Amended and Restated Articles of Incorporation authorize the issuance of two classes of stock designated as common and preferred stock, each having a par value of $0.001 per share. The number of shares authorized at September 30, 2021 is 39,172,043, consisting of 21,643,836 shares of common stock and 17,528,207 shares of preferred stock, designated as Series A-1, Series B, Series C, Series C-1, Series D, and Series E preferred stock in the amounts included in the table below.

Convertible Preferred Stock

The Company classifies convertible preferred stock as temporary equity on the accompanying condensed consolidated balance sheets, as all such preferred stock is redeemable either at the option of the holder or upon an event outside the control of the Company. The requirements of a deemed liquidation event, as defined within its amended and restated certificate of incorporation filed in 2019 are not entirely within the Company’s control. In the event of such a deemed liquidation event, the proceeds from the event are distributed in accordance with the liquidation preferences, provided that the holders of preferred stock have not converted their shares into common stock. The Company records the issuance of preferred stock at the issuance price less related issuance costs. The Company has not adjusted the carrying value of outstanding preferred stock to its liquidation preference because a deemed liquidation event is not probable of occurring as of the end of the reporting period.

The following table summarizes information related to issuance of the Company’s preferred stock at September 30, 2021 and December 31, 2020 (in thousands, except share data):

Preferred Stock Class	Number of Shares Authorized		Shares Issued and Outstanding		Carrying Value(1)		Conversion Price Per Share		Number of Common Stock Equivalent Shares		Liquidation Preference
Series A-1		730,591		730,591	$	500	$	0.6800		730,591	$	500
Series B		955,573		955,573		6,999		7.2600		955,573		6,941
Series C		917,554		917,554		9,073		10.0400		917,554		9,210
Series C-1		1,671,229		1,643,832		17,941		10.9500		1,643,832		18,000
Series D		4,261,994		3,982,359		70,686		17.7900		3,982,359		70,847
Series E		8,991,266		8,801,978		176,143		20.0800		8,801,978		176,700
		17,528,207		17,031,887	$	281,342				17,031,887	$	282,198

(1)The carrying value reflects the gross proceeds received from the sale of the preferred stock less issuance costs and the fair value at issuance of preferred stock warrants classified as a liability.

Upon the closing of the IPO, all 17,031,887 of the Company’s outstanding shares of the convertible preferred stock as of September 30, 2021 were converted into an equal number of shares of common stock.

Common Stock

Each share of common stock is entitled to one vote.

Common stock reserved for future issuance consisted of the following:

	As of September 30, 2021		As of December 30, 2020
Conversion of preferred stock		17,031,887		17,031,887
Preferred stock warrants		331,503		180,819
Forward obligation		224,842		224,842
Stock options issued and outstanding under the 2007 and    2017 Plan		2,532,210		2,247,136
Common shares available for future grant under the    2017 Plan	353,255			696,660