Stock-Based Compensation

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

13. Stock-Based Compensation

Restricted Stock Units

Restricted stock units (RSUs) activity for the three months ended March 31, 2023 is as follows:


	Number of Shares			Weighted- Average Grant Date Fair Value
Balance, December 31, 2022		3,450,792		$	8.52
RSUs granted		660,000			0.28
RSUs vested		(279,575	)		8.25
RSUs canceled		(214,841	)		8.70
Balance, March 31, 2023		3,616,376		$	7.02

Stock Options

Stock option activity for the three months ended March 31, 2023 (in thousands, except share amounts and per unit data) is as follows:


	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value
Balance, December 31, 2022		5,134,332		$	3.40		6.50	$	61
Options granted		4,490,000			0.27		9.99		90
Options exercised		—			—		—		—
Options expired		(214,747	)		3.62		—		—
Options forfeited		(68,014	)		4.01		—		—
Balance, March 31, 2023		9,341,571		$	1.87		8.55	$	115
Vested and Exercisable, March 31, 2023		2,858,415			3.06		5.30		19
Vested and Exercisable and Expected to Vest, March 31, 2023		9,341,571		$	1.87		8.55	$	115

The intrinsic value is calculated as the difference between the exercise price of the underlying stock option award and the estimated fair value of the Company’s common stock. The total intrinsic value for stock options exercised during the periods ended March 31, 2023 and 2022 was $0 and $6.0 thousand, respectively. The fair value of awards vested during the periods ended March 31, 2023 and 2022

was $1.5 million and $1.4 million, respectively. The weighted-average grant-date fair value of stock options granted during the periods ended March 31, 2023 and 2022 was $0.20 and $3.47, respectively.

The following table summarizes the weighted-average assumptions used in the valuation of stock options granted:


	Three Months Ended March 31,
	2023			2022
Expected volatility (%)		81.4	%		75.3	%
Risk-free interest rate (%)		3.6	%		1.9	%
Expected dividend yield		—			—
Expected term (years)		6.0			6.0

The Company recognized stock-based compensation expense related to stock options of $1.2 million and $1.5 million for the three months ended March 31, 2023 and 2022, respectively, which was included in the consolidated statements of operations and comprehensive loss as follows (in thousands):


	Three Months Ended March 31,
	2023		2022
Sales and marketing	$	17	$	273
Operations		190		273
Technology and product development		110		369
General and administrative		834		614
Total	$	1,151	$	1,529

As of March 31, 2023, there was $8.0 million of total unrecognized compensation cost related to unvested stock options granted under the plan that is expected to be recognized over a weighted-average period of 0.65 years.

The Company recognized stock-based compensation expense related to RSUs of $2.4 million and $0.4 million for the three months ended March 31, 2023 and 2022, respectively, which was included in the consolidated statements of operations and comprehensive loss as follows (in thousands):


	Three Months Ended March 31,
	2023		2022
Sales and marketing	$	115	$	62
Operations		629		71
Technology and product development		898		170
General and administrative		772		59
Total	$	2,414	$	362

As of March 31, 2023, there was $23.8 million of total unrecognized compensation cost related to unvested RSUs that is expected to be recognized over a weighted-average period of 1.96 years.

Early Exercise of Nonvested Options

At the discretion of the board of directors, certain options may be exercisable immediately at the date of grant but are subject to a repurchase right, under which the Company may buy back any unvested shares at their original exercise price in the event of an employee’s termination prior to full vesting. The consideration received for an exercise of an unvested option is considered to be a deposit of the exercise price and the related dollar amount is recorded as a liability. The liabilities are reclassified into equity as the awards vest. As of March 31, 2023 and December 31, 2022, there were no shares early-exercised stock options.