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Stock-Based Compensation
 9 Months Ended
Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Stock Options
The following table summarizes the activity for all stock options under all of the Company’s equity incentive plans for the nine months ended September 30, 2023 (shares and aggregate intrinsic value in thousands):
Number of OptionsWeighted Average Exercise PriceWeighted Average Remaining Contractual LifeAggregate Intrinsic Value
Outstanding at December 31, 20225,217 $16.08 5.68$58,784 
Granted— — 
Exercised(534)6.75 
Canceled(106)30.09 
Outstanding at September 30, 20234,577 $16.85 4.99$14,182 
Options vested and exercisable at September 30, 20233,764 $13.77 4.30$13,991 
Restricted Stock Units
The following table summarizes the activity for all restricted stock units (“RSUs”) under all of the Company’s equity incentive plans for the nine months ended September 30, 2023 (shares in thousands):
Number of AwardsWeighted Average Grant Date Fair Value
Unvested balance at December 31, 20224,542 $31.60 
Granted6,886 19.63 
Issued(2,202)27.67 
Canceled / forfeited(745)27.77 
Unvested balance at September 30, 20238,481 $23.25 
Warrants for Strategic Partners
The Company has issued warrants for up to 846,943 shares of its common stock to certain strategic partners (calculated using the respective quarter of grant's closing stock price). The exercise price of each warrant is $0.01 per share, and 47,810 warrants were exercised during the nine months ended September 30, 2023. There were 330,329 warrants exercised during the nine months ended September 30, 2022. The Company recognized stock-based compensation expense of $1.1 million and $1.1 million during the three months ended September 30, 2023 and 2022, respectively, and $3.2 million and $3.2 million during the nine months ended September 30, 2023 and 2022, respectively, under performance and time-based warrants.
Employee Stock Purchase Plan
Under the Company's 2015 Employee Stock Purchase Plan ("ESPP"), eligible employees are offered shares bi-annually through a 24-month offering period that encompasses four six-month purchase periods. Each purchase period begins on the first trading day on or after May 15 and November 15 of each year. Employees may purchase a limited number of shares of the Company’s common stock via regular payroll deductions at a discount of 15% of the lower of the fair market value of the Company’s common stock on the first trading date of each offering period or on the exercise date. Employees may deduct up to 15% of payroll, with a cap of $25,000 of fair market value of shares in any calendar year and 10,000 shares per employee per purchase period.
Stock-Based Compensation Expense
The Company recognized stock-based compensation expense, including ESPP expenses, in the consolidated statements of operations as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Cost of customer agreements and incentives$2,335 $1,776 $6,224 $7,132 
Cost of solar energy systems and product sales
1,153 1,741 4,415 6,755 
Sales and marketing14,096 10,418 43,808 48,042 
Research and development405 464 1,299 2,160 
General and administration9,734 8,431 28,480 24,613 
Total$27,723 $22,830 $84,226 $88,702 
During the three and nine months ended September 30, 2023, stock-based compensation expense capitalized to solar energy systems, net in the Company’s consolidated balance sheet was $3.4 million and $8.6 million, respectively, and was $2.7 million and $10.1 million during the three and nine months ended September 30, 2022, respectively.