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Redeemable Convertible Preferred Stock
6 Months Ended
Jun. 30, 2022
Temporary Equity Disclosure [Abstract]  
Redeemable Convertible Preferred Stock

8. Redeemable Convertible Preferred Stock

Prior to its conversion to common stock in April 2021, the Company classified its redeemable convertible preferred stock as mezzanine equity on the condensed consolidated balance sheets as the shares were contingently redeemable with passage of time or upon deemed liquidation events, such as a change in control. As only the passage of time was required for Series B, C-1, C-2, C-3, and D preferred stock to become redeemable, the Company accreted the carrying value of the preferred stock shares to their redemption

value, using the effective interest method, over the period from issuance to the earliest payment dates. With respect to Series A-1 and A-2, no accretion was recorded during the six months ended June 30, 2021, as a deemed liquidation event was not probable. Amounts recorded for the accretion of redeemable convertible preferred stock during the six months ended June 30, 2021 was $0.1 million. The accretion is recorded as a deemed dividend and a charge to additional paid-in capital.

 

In April 2021, immediately prior to the completion of the IPO, all outstanding shares of redeemable convertible preferred stock were automatically converted into 12,605,800 shares of common stock. Upon conversion into common stock, the carrying value of the redeemable convertible preferred stock of $127.2 million was reclassified to equity.