Equity-Based Compensation (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2023

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Summary of Compensation Cost Recognized

Presented below is a summary of the compensation cost recognized in the condensed consolidated statements of operations and comprehensive (loss) for the three and nine months ended September 30, 2023 and 2022.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(in thousands)				(in thousands)
Research and development	$	1,347	$	383	$	4,803	$	478
Sales and marketing		87		34		407		52
General and administrative		3,402		3,356		18,563		3,421
Total stock-based compensation expense	$	4,836	$	3,773	$	23,773	$	3,951

Presented below is a summary of the compensation cost recognized in the consolidated statements of operations for the years ended December 31, 2022 and 2021.

	December 31,
(in thousands)	2022		2021
Research and development	$	1,765	$	112
Sales and marketing		286		31
General and administrative		4,297		1,021
Total	$	6,348	$	1,164

Summary of Stock Option Activity

The following summary sets forth the stock option activity under the 2023 and 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		3,428,225		2.38
Exercised		(677,350)		0.53				12,690
Cancelled or forfeited		(89,603)		0.92
Outstanding as of September 30, 2023		3,108,111		2.70		9.5	$	1,341
Options exercisable as of September 30, 2023		178,310	$	5.97		8.8	$	50
Options unvested as of September 30, 2023		2,325,600	$	3.33		9.5	$	775

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)
Balances at December 31, 2021		51,149	$	20.34		9.7	$	1,953
Options granted		439,786		1.66
Options exercised		(7,784)		2.75				271
Options cancelled		(36,310)		19.78
Balances at December 31, 2022		446,841		2.30		9.6	$	11,706
Exercisable at December 31, 2022		145,713	$	3.53		9.6	$	3,638
Unvested at December 31, 2022		266,993	$	2.07		9.6	$	7,058

Summary of Unvested Common Stock

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		(37)		—		—
Repurchased		(2,655)		—		—
Unvested common stock as of September 30, 2023		32,078			$	52

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 — December 31, 2021		1,134	$	-	$	88
Issued		6,057		7.48		-
Vested		(794)		7.17		-
Repurchased		(2,574)		-		-
Unvested common stock — December 31, 2022		3,823			$	306

Summary of Stock Option Valuation Assumptions

The fair value of each option was estimated at the grant date using the Black-Scholes method with the following assumptions:

	September 30,		September 30,
	2023		2022
Weighted-average risk-free interest rate (1)		3.7%		3.3%
Weighted-average expected term (in years)		5.93		5.34
Weighted-average expected volatility (2)		62.27%		54.6%
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.

The fair value of each option was estimated at the grant date using the Black-Scholes method with the following assumptions:

	December 31,
	2022		2021
Weighted-average risk-free interest rate		3.3%		1.2%
Weighted-average expected term (in years)		5.35		5.50
Weighted-average expected volatility		54.6%		43.1%
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.