Warrants

3 Months Ended

Mar. 31, 2023

Warrants and Rights Note Disclosure [Abstract]

Warrants

11.Warrants

Class A Common Stock Warrants

On November 13, 2022, the Company issued an aggregate 92,296 warrants to purchase Class A Common Stock to various third-party investors in conjunction with the issuance of its November 2022 Convertible Notes. Each warrant has a strike price of $0.01 per share and has a contractual term of ten years. The warrants are classified as other long-term liabilities within the condensed consolidated balance sheets and are carried at fair value, with changes in fair value recorded in earnings. The fair value of the warrants issued in 2022 was recorded as a liability on the Balance Sheet and expensed to other (expense) income, net on the Statement of Operations and Comprehensive Loss, at the time of issuance. The Company recognized a gain equal to $2.4 million for the three months ended March 31, 2023, related to changes in fair value for the warrants issued in November 2022.

The following is a schedule of changes in warrants issued and outstanding from December 31, 2022 to March 31, 2023:

	Class A Common Stock Warrants
Outstanding as of December 31, 2022		92,296
Warrants issued		—
Warrants exercised		—
Outstanding as of March 31, 2023		92,296

Class B Common Stock Warrants

The Company issued warrants in 2021 to purchase Class B Common Stock to various employees and non-employees. Each warrant has a strike price of $0.01 and has a contractual term of seven years. The warrants are classified as permanent equity within the condensed consolidated balance sheets.

The following is a schedule of changes in warrants issued and outstanding from December 31, 2022 to March 31, 2023:

	Class B Common Stock Warrants
Outstanding as of December 31, 2022		5,753
Warrants issued		—
Warrants exercised		—
Outstanding as of March 31, 2023		5,753