Related-Party Transactions

9 Months Ended

Sep. 30, 2021

Related Party Transactions [Abstract]

Related-Party Transactions

Related-Party TransactionsAs a private company, the Company issued secured promissory notes collateralized by the stock purchased by certain Company executives in relation to the exercise of employee stock options. As the promissory notes are secured by the underlying shares they have been treated as non-recourse notes in the condensed consolidated financial statements. The promissory notes are issued with a term of 8.5 years and an interest rate equal to the minimum applicable federal mid-term rate in the month the loan was issued. The secured promissory notes are recorded as a reduction to equity offsetting the amount in additional paid-in-capital related to the exercised options

funded by the notes. During the three months ended September 30, 2021, the outstanding loan balance increased by $0.1 million due to interest and $31.5 million of employee loans and accrued interest were repaid. During the nine months ended September 30, 2021, the outstanding loan balance increased by $0.3 million due to interest and $31.5 million of employee loans and accrued interest were repaid. The Company extended loans of $13.8 million to executives during the nine months ended September 30, 2021, and did not extend any loans during the three months ended September 30, 2021. The loans had a balance of $3.2 million at September 30, 2021, and no loans are outstanding with any of our executive officers.

In May 2021, the Company and Addition Two, L.P., a related party investor, commenced the Tender Offer which was completed in June 2021. See Note 7, Redeemable Convertible Preferred Stock and Stockholders’ Deficit, for further discussion of the nature of the Tender Offer.