Presented below is a summary of the compensation cost recognized in the condensed consolidated statements of operations for the three months ended March 31, 2023 and 2022.


	Year Ended March 31,
(in thousands)	2023		2022
Research and development	$	2,131	$	47
Sales and marketing		222		9
General and administrative		12,286		32
Total	$	14,639	$	88

For the three months ended March 31, 2023 and 2022, $0.4 million and $0.01 million of stock-based compensation was capitalized as software costs, respectively.

During the three months ended March 31, 2023, the Company granted options to purchase 2,028,425 shares under the 2020 Plan. The Company has not granted any restricted stock or stock appreciation rights.

In December 2022, the Company enacted a restructuring cost savings initiative which resulted in employee terminations in both December 2022 and January 2023. In association with January 2023 terminations, the Company accelerated the vesting of a number of individual option awards, resulting in the accelerated vesting of 5,938 shares on the date of modification. Also in January 2023, the Company repriced 301,537 option awards . Both the accelerated vesting and repricing were accounted for as an equity award modification under ASC Topic 718 which resulted in adjustment of the award value to reflect the fair value at the modification date and acceleration of the recognition schedule in the case of awards which were modified to have accelerated vesting. The adjustment resulted in additional expense of $0.5 million.

The following summary sets forth the stock option activity under the 2020 Plan:


	Number of options			Weighted average exercise price		Weighted average remaining contractual term (in years)		Aggregate intrinsic value (in thousands)
Outstanding as of December 31, 2022		446,839		$	2.30		9.6	$	11,706
Granted		2,028,425			0.51
Exercised		(677,350	)		0.53				12,690
Cancelled or forfeited		(13,651	)		3.04
Outstanding as of March 31, 2023		1,784,263			0.73		9.8	$	52,232
Options exercisable as of March 31, 2023		157,608		$	6.70		9.2	$	3,672
Options unvested as of March 31, 2023		1,145,712		$	0.82		9.8	$	33,429

The aggregate intrinsic value of options outstanding, exercisable and unvested were calculated as the difference between the exercise price of the options and the estimated fair market value of the Company’s common stock, as of March 31, 2023.

A summary of unvested common stock from early option exercises that are subject to repurchase by the Company under the 2020 Plan is as follows:


	Early Option Exercises
	Number of options			Weighted average exercise price		Repurchase liability (in thousands)
Unvested common stock as of December 31, 2022		3,823		$	—	$	306
Issued		30,947			1.19		—
Vested		—			—		—
Repurchased		(736	)		—		—
Unvested common stock as of March 31, 2023		34,034				$	55

For the three months ended March 31, 2023 the weighted-average grant date fair value per option was $18.86. There were no options granted for the three months ended March 31, 2022. The fair value of each option was estimated at the grant date using the Black-Scholes method with the following assumptions:


	March 31,			March 31,
	2023			2022
Weighted-average risk-free interest rate (1)		3.6	%		—	%
Weighted-average expected term (in years)		6.03			—	%
Weighted-average expected volatility (2)		57.9	%		—	%
Expected dividend yield		—	%		—	%

(1)

Based on U.S. Treasury seven-year constant maturity interest rate whose term is consistent with the expected term of the option.

(2)

Expected volatility is based on an analysis of comparable public company volatilities and adjusted for the Company’s stage of development.

With respect to the 2020 Plan, the Company recognized stock compensation expense of $14.6 million and $0.1 million for the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023 and December 31, 2022, the Company had $29.2 million and $5.9 million of unrecognized stock-based compensation expense that is expected to be recognized over a weighted-average period of 1.7 years and 1.6 years, respectively.

For financial reporting purposes for the awards granted in January 2023, we applied a straight-line calculation between the $30.00 per share determined in the contemporaneous third-party valuation as of December 31, 2022 and the $6.08 per share determined in the contemporaneous third-party valuation as of March 31, 2023 to determine the fair value of our common stock on the grant date. Using the benefit of hindsight, we determined that the straight-line calculation would provide the most appropriate conclusion for the valuation of our common stock on the interim dates between valuations because we did not identify any single event or series of events that occurred during this interim period that would have caused a material change in fair value. Based on this calculation, we assessed the fair value of our common stock for awards granted in January 2023 to be $19.27 per share.