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STOCK-BASED AWARDS
 3 Months Ended
Mar. 31, 2022
Share-based Payment Arrangement [Abstract]  
STOCK-BASED AWARDS STOCK-BASED AWARDS
Stock Options
A summary of stock option activity for the three months ended March 31, 2022 was as follows:

Outstanding Options
Number of Options
Weighted Average Exercise Price
Weighted-Average Remaining Contractual Term
Intrinsic Value (in thousands)
Balance—December 31, 202164,119,902 $1.08 6.6$2,370,666 
Options granted
— — 
Options exercised
(12,103,110)0.76 
Options canceled
(1,316,554)1.60 
Balance—March 31, 202250,700,238 $1.14 7.01$1,231,047 
Options vested and exercisable March 31, 202233,233,881 $0.90 6.32$814,996 
As of March 31, 2022, unrecognized stock-based compensation cost related to outstanding unvested stock options that are expected to vest was $10.2 million, which is expected to be recognized over a weighted-average period of 2.3 years.

Restricted Stock Unit
A summary of RSU award activity was as follows:
Restricted Stock Units
Time-Based SharesPerformance-Based SharesTotal SharesWeighted-Average Grant-Date Fair Value
Balance as of December 31, 2021
32,210,200 16,024,411 48,234,611 $20.45 
Granted1,615,027 — 1,615,027 26.50 
Vested(1,174,633)(13,934,271)(15,108,904)17.79 
Cancelled/Forfeited(505,116)— (505,116)24.46 
Balance as of March 31, 2022
32,145,478 2,090,140 34,235,618 $22.25 
As of March 31, 2022, unrecognized stock-based compensation cost related to outstanding unvested time-based RSUs that are expected to vest was $476.2 million, which is expected to be recognized over a weighted-average period of 2.5 years.
All performance-based RSUs granted to the CEO are subject to performance and market conditions. The performance condition was satisfied upon the closing of the Merger. The fair value of these performance-based RSUs was measured on the grant date, March 27, 2021, using a Monte Carlo simulation model, with the following assumptions:
Weighted average volatility60.0 %
Expected term (in years)5.0
Risk-free interest rate0.9 %
Expected dividends— 
The Company recognizes compensation expense on a graded vesting schedule over the requisite vesting period for the time-based awards and over the derived service period for the CEO performance-based awards. Stock-based compensation expense is recognized when the relevant performance condition is considered probable of achievement for the performance-based award. In the three months ended March 31, 2022, the market capitalization condition was met for the CEO performance-based awards for four of the five tranches and certified by the Board of Directors, representing an aggregate of 13,934,271 performance RSUs. We recorded stock-based compensation expense of $85.4 million for the four tranches during the three months ended March 31, 2022, and no such expense was recognized in the same period prior year. As of March 31, 2022, the unamortized expense for the fifth tranche, representing 2,090,140 RSUs, was $16.8 million which will be recognized over a period of 1.5 years. For the three months ended March 31, 2022, the Company withheld approximately 8.0 million shares of common stock by net settlement to meet the related tax withholding requirements related to the CEO time-based and performance-based RSUs.
Stock-Based Compensation Expense
Total employee and nonemployee stock-based compensation expense for the three months ended March 31, 2022 and 2021, is classified in the condensed consolidated statements of operations as follows (in thousands):
Three Months Ended March 31,
20222021
Cost of revenue$8,599 $212 
Research and development49,756 12,952 
Selling, general and administrative116,196 91,631 
Total$174,551 $104,795