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Stock-based Compensation
 9 Months Ended
Sep. 30, 2022
Share-based Payment Arrangement [Abstract]  
Stock-based Compensation Stock-based Compensation
As of September 30, 2022, the Company has four equity incentive plans, the 2015 Stock Plan (the “2015 Plan”), the Sense 2017 Equity Incentive Plan (the “Sense Plan”), the 2021 Incentive Award Plan (the “2021 Plan”) and 2022 Employee Stock Purchase Plan (the “2022 ESPP” and, collectively with the 2015 Plan, the Sense Plan and the 2021 Plan, together the “Plans”).

The Plans provide for the grant of stock options, stock appreciation rights, restricted stock awards (“RSA”), restricted stock units (“RSUs”), 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 under the Plans may be granted to employees, including officers, and awards under the 2015 Plan, Sense Plan and 2021 Plan also may be granted to directors and consultants, in each case, within the limits defined in the Plans.

The Company’s 2022 ESPP has been offered to all eligible employees since August 2022 and generally permits certain employees to purchase shares of our common stock through payroll deductions of up to 15% of their compensation of each offering period, subject to certain limitations. Under the 2022 ESPP, the purchase price of a share under the ESPP equals 85% of the lesser of the fair market value of a share of common stock on either the first or last day of each offering period, but no less than the par value per share of common stock. As of September 30, 2022, 6.9 million shares of our common stock were available for issuance under the 2022 ESPP. The stock-based compensation expense is calculated as of the beginning of the
offering period as the fair value of the 2022 ESPP shares utilizing the Black-Scholes option valuation model and is recognized over the offering period. The first offering period under the 2022 ESPP commenced on September 6, 2022. As of September 30, 2022, the maximum number of shares that may be issued under the first offering period was 349,630 shares of our common stock, but no shares were issued under the 2022 ESPP.

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, certain executives and employees issued the Company partial recourse promissory notes with an aggregate principal of $1.1 million. The promissory notes carried a 0.38% annual interest rate and were due on the earliest of the ninth anniversary of the date of issuance of the notes, the termination of employment of the executive/employee, the filing by the Company of a registration statement under the Securities Act of 1933, the promissory notes being prohibited under Section 13(k) of the Securities Exchange Act of 1934 or, the closing of a change in control of the Company. The promissory notes were issued by the executives and employees in satisfaction of the exercise price of vested options to purchase 2,883,672 shares of common stock and unvested options to purchase 4,603,833 shares of common stock. No cash was exchanged as part of the exercises. In March 2021, in connection with the close of the Colonnade 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 their respective notes. Additional compensation expense of $0.3 million was recognized in general and administrative expenses for the nine months ended September 30, 2021 for the value of the loans forgiven. No obligations under the promissory notes for non-executive noteholders were outstanding as of September 30, 2022 and December 31, 2021.

Stock option activity for the nine months ended September 30, 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, 202124,129,096 $1.01 8.60$100,992 
Options exercised(1,753,708)0.20 
Options cancelled(857,212)2.85 
Outstanding—September 30, 202221,518,176 $1.01 7.92$9,866 
Vested and expected to vest—September 30, 202221,518,176 $1.01 7.92$9,866 
Exercisable—September 30, 202211,545,615 $0.89 7.86$5,669 

The following table summarizes information about stock options outstanding and exercisable at September 30, 2022.
Options OutstandingOptions Exercisable
Exercise
Price		Options
Outstanding		Weighted
Average
Remaining
Contractual
Life (Years)		Weighted
Average
Exercise
Price		Options
Exercisable		Weighted
Average
Exercise
Price
$0.18 4,088,911 7.73$0.18 3,027,603 $0.18 
$0.21 8,909,207 7.98$0.21 4,415,060 $0.21 
$1.42 7,524,114 8.00$1.42 3,605,304 $1.42 
$1.49 34,036 0.18$1.49 34,036 $1.49 
$5.24 316,111 6.25$5.24 234,893 $5.24 
$10.26 645,797 8.60$10.26 228,719 $10.26 
21,518,176 11,545,615 
As of September 30, 2022, there was approximately $15.7 million of unamortized stock-based compensation expense related to unvested stock options that is expected to be recognized over a weighted average period of 1.9 years.
Restricted Stock Units (“RSU”)
A summary of RSU activity is as follows:

Number of
Shares		Weighted Average
Grant Date Fair
Value (per share)
Unvested—December 31, 20219,326,572 $7.82 
Granted during the year14,701,880 2.86 
Canceled during the year(2,887,605)5.95 
Vested during the year(2,754,926)7.22 
Unvested—September 30, 202218,385,921 $4.24 
Stock compensation expense is recognized on a straight-line basis over the vesting period of each RSU. As of September 30, 2022, total compensation expense related to unvested RSUs granted to employees, but not yet recognized, was $72.3 million, with a weighted-average remaining vesting period of 2.9 years.

RSUs settle into shares of common stock upon vesting.

Stock-Based Compensation Expense

The Company recognized stock-based compensation expense for all stock options in the condensed consolidated statements of operations and comprehensive loss as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Cost of product revenue$207 $206 $570 $457 
Research and development3,681 2,063 11,248 4,305 
Sales and marketing1,913 1,717 5,276 2,702 
General and administrative2,654 3,161 8,230 11,093 
Total stock-based compensation$8,455 $7,147 $25,324 $18,557 
The following table summarizes stock-based compensation expense by award type (in thousands):

Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
RSUs$6,313 $4,892 $18,460 $8,824 
Stock Options2,099 2,251 6,807 9,718 
Employee stock purchase plan43 — 43 — 
RSAs— 4 14 15 
Total stock-based compensation$8,455 $7,147 $25,324 $18,557