Restricted Stock Units

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

15. RESTRICTED STOCK UNITS (RSUs)

The following table sets forth the activity related to the number of outstanding RSUs for the six months ended June 30, 2023 (on a post-reverse split basis):


	Number of shares			Weighted- average grant date fair value (per share)
Non-vested as of December 31, 2022		1,001,396		$	30.57
Vested		(324,284	)	$	24.30
Granted		560,930		$	2.29
Cancelled		(73,906	)	$	30.33
Non-vested as of June 30, 2023		1,164,136		$	18.71

On March 6, 2023, the Board approved a 1-for-3.5 Reverse Stock Split of the Company’s outstanding equity instruments to be effected as of March 9, 2023, as described in Note 1 – Description of Organization and Business Operations. Shares of common stock underlying outstanding restricted stock units were proportionately reduced from 3,507,250 to 1,001,396 as of December 31, 2022 (on a post-reverse split adjusted basis), subject to the treatment of the fractional shares.

The Reverse Stock Split did not impact the fair value of the restricted stock units previously recorded and no modification accounting under ASC 718-20-35-2A is required because all three of the following conditions were met: (i) the fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified; (ii) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified and (iii) the classification of the modified award as an equity instrument is the same as the classification of the original award immediately before modification.

RSUs compensation expense for the three months ended June 30, 2023 and 2022 was $2.0 million and $8.5 million, respectively. RSUs compensation expense for the six months ended June 30, 2023 and 2022 was $4.0 million and $15.2 million, respectively, which was recorded as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Research and development	$	354	$	1,602	$	412	$	2,622
Sales and marketing		110		1,162		378		1,945
General and administrative		1,509		5,726		3,196		10,682
Total	$	1,973	$	8,490	$	3,986	$	15,249

As of June 30, 2023, there was $7.5 million of unrecognized compensation cost related to non-vested RSUs to be recognized over a weighted-average remaining period of 1.34 years.