Stock-based compensation

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

As of March 31, 2022, the Company has three equity incentive plans, the 2015 Stock Plan (the “2015 Plan”), the 2021 Incentive Award Plan (the “2021 Plan”) and the Sense 2017 Equity Incentive Plan (the “Sense Plan” and together the “Plans”).

The Plans provide for the grant of stock options, stock appreciation rights, restricted stock awards (“RSA”), restricted stock units (“RSU”), performance stock unit awards and other forms of equity compensation (collectively, “equity awards”). In addition, the 2021 Plan provides for the grant of performance bonus awards. All awards within the Plans may be granted to employees, including officers, as well as directors and consultants, within the limits defined in the Plans.

Certain employees have the right to early exercise unvested stock options, subject to rights held by the Company to repurchase unvested shares in the event of voluntary or involuntary termination. The Company accounts for cash received in consideration for the early exercise of unvested stock options as a non-current liability, included as a component of other liabilities in the Company’s condensed consolidated balance sheets.

On October 12, 2020, the Company issued $1.1 million partial recourse promissory notes to certain executives and employees. The promissory notes carried 0.38% annual cash interest and were due on the earliest of 9th anniversary of the date of issuance of the notes, or termination of employment of the executive/employee, or filing by the Company of a registration statement under the Securities Act of 1933, or promissory notes being prohibited under Section 13(k) of the Securities Exchange Act of 1934 or closing of change a in control of the Company. At issuance, the promissory notes were used to settle certain executives’ and employees’ obligations for 2,883,672 vested and 4,603,833 unvested ISOs that were exercised and no cash was exchanged. In March 2021, in connection with the close of the Merger, the Company forgave half of the respective obligations under the promissory notes for certain executives and required such noteholders to repay the remaining balance of $0.3 million under each of their respective notes. Additional compensation expense of $0.3 million was recognized in general and administrative expenses for the three months ended March 31, 2021 for the value of the loans forgiven. No obligations under the promissory notes for non-executive noteholders were outstanding as of March 31, 2022 and December 31, 2021.

Stock Options

Stock option activity for the three months ended March 31, 2022 is as follows:


	Number of Shares Underlying Outstanding Options	Weighted- Average Exercise Price per Share		Weighted- Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding—December 31, 2021	24,129,096	$	1.01	8.6	$	100,992



Options exercised	(797,380)	0.20
Options cancelled	(77,753)	4.21			$	—
Outstanding—March 31, 2022	23,253,963	$	1.03	8.3	$	84,888
Vested and expected to vest—March 31, 2022	23,253,963	$	1.03	8.3	$	84,888
Exercisable—March 31, 2022	9,954,974	$	0.80	8.1	$	37,186

The following table summarizes information about stock options outstanding and exercisable at March 31, 2022.


		Options Outstanding				Options Exercisable
Exercise Price		Options Outstanding	Weighted Average Remaining Contractual Life (Years)	Weighted Average Exercise Price		Options Exercisable	Weighted Average Exercise Price
$	0.18	5,037,657	8.3	$	0.18	3,256,438	$	0.18
$	0.21	9,300,668	8.5	$	0.21	3,454,922	$	0.21
$	1.42	7,524,114	8.5	$	1.42	2,664,790	$	1.42
$	1.49	40,581	5.8	$	1.49	40,418	$	1.49
$	5.24	705,146	4.0	$	5.24	538,406	$	5.24
$	10.26	645,797	9.1	$	10.26	—	$	—
		23,253,963				9,954,974

As of March 31, 2022, there was approximately $21.2 million of unamortized stock-based compensation expense related to unvested stock options that is expected to be recognized over a weighted average period of 2.4 years.

Restricted Stock Unit (“RSU”) Awards

A summary of RSU activity is as follows:


	Number of Shares	Weighted Average Grant Date Fair Value (per share)
Unvested – December 31, 2021	9,326,572	$	7.82
Granted during the period	3,983,474	4.25
Canceled during the period	(1,559,964)	6.44
Vested during the period	(828,921)	7.46
Unvested — March 31, 2022	10,921,161	$	6.75

Stock compensation expense is recognized on a straight-line basis over the vesting period of each RSU. As of March 31, 2022, total compensation expense related to unvested RSUs granted to employees, but not yet recognized, was $68.1 million, with a weighted-average remaining vesting period of 3.2 years.

RSUs settle into shares of common stock upon vesting.

Stock-Based compensation expense

Stock-based compensation expense is included in costs and expenses as follows (in thousands):


	Three Months Ended March 31,
	2022		2021
Cost of revenue	$	217	$	118
Research and development	3,761		921
Sales and marketing	1,524		265
General and administrative	3,248		3,952
Total stock-based compensation	$	8,750	$	5,256

The following table summarizes stock-based compensation expense by award type (in thousands):


	Three Months Ended March 31,
	2022		2021
RSUs	$	5,901	$	313
Stock options	2,840		4,937
RSAs	9		6
Total stock-based compensation	$	8,750	$	5,256