XML 24 R14.htm IDEA: XBRL DOCUMENT v3.22.2.2
Equity Incentive Plans
 9 Months Ended
Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Equity Incentive Plans EQUITY INCENTIVE PLANS As of September 30, 2022, there are 11,400,396 shares of Class A common stock reserved for issuance under the 2020 Equity Incentive Plan, 5,939,230 of which shares are available for issuance in connection with grants of future awards.
Stock Options
Stock option activity for the nine months ended September 30, 2022 is as follows:
Options Outstanding
Weighted Average Exercise Price
Balance at December 31, 2021
9,832,924 $12.49 
Options granted2,930,552 14.44 
Options exercised(306,854)4.52 
Options cancelled and forfeited(1,784,904)11.16 
Balance at September 30, 202210,671,718 $13.48 
Vested and exercisable, September 30, 2022
4,694,141 $7.58 
Restricted Stock Awards
Certain stock options granted provide stock option holders the right to exercise unvested stock options in exchange for restricted shares of Class A common stock. The Company has also issued restricted shares of Class A common stock to employees and directors. There were 92,691 shares and 174,300 shares of restricted stock that were unvested and subject to repurchase as of September 30, 2022 and December 31, 2021, respectively.
Restricted Stock Units
RSU activity for the nine months ended September 30, 2022 is as follows:
Restricted Stock Units
Weighted-Average
Grant Date
Fair Value
Balance at December 31, 2021
740,366 $26.49 
Granted1,625,359 15.11 
Vested
(263,505)21.16 
Cancelled
(474,382)15.83 
Balance at September 30, 2022
1,627,838 $18.51 
Employee Stock Purchase Plan
A total of 1,195,327 shares of Class A common stock are reserved for issuance under the 2020 Employee Stock Purchase Plan (ESPP) as of September 30, 2022. During the nine months ended September 30, 2022, 56,753 shares of Class A common stock were issued under the ESPP.
Stock-Based Compensation
The following table summarizes the components of stock-based compensation recognized in the Company’s condensed consolidated statements of operations and comprehensive loss (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2022202120222021
Cost of revenue$299 $523 $784 $1,271 
Research and development2,395 1,022 6,788 3,209 
Selling, general and administrative6,379 5,241 17,941 14,776 
Total stock-based compensation$9,073 $6,786 $25,513 $19,256 
In February 2022, in connection with a leave of absence taken by one of our executives, a total of 1,330,892 share-based awards were modified to extend the overall term and change the timing of the vesting of the awards. The total incremental stock-based compensation associated with the modification is $0.9 million, which will be recognized over the next eight years.
On June 21, 2022, the Board of Directors approved an option repricing to reduce the exercise price of certain vested, outstanding, and unexercised stock options with an exercise price greater than $19.00 per share that were held by employees who were not members of the Board or Director or officers for purposes of Section 16 of the Securities Exchange Act of 1934, as amended (“Non-Section 16 employees”) to $19.00 per share, which was the Company’s initial public offering price. The Board of Directors also approved the repricing of certain unvested, outstanding, and unexercised stock options with an exercise price greater than $19.00 per share that were held by Non-Section 16 employees to $7.40 per share, which was the closing price of the Company’s Class A common stock on the Nasdaq Global Select Market on the date of the approval of the repricing. Except for the exercise price, the amended stock options have the same terms and conditions (including vesting schedule, number of shares, and expiration date) and will continue to be governed by the terms of the 2020 Equity Incentive Plan.
As a result of the option repricing, the Company recorded $0.4 million and $0.7 million of incremental compensation expense during the three and nine months ended September 30, 2022, respectively. The total unrecognized incremental stock-based compensation associated with the option repricing is $2.0 million, which will be recognized over the next three years.