Stock-Based Compensation

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

14. Stock-Based Compensation

Restricted Stock Units

Restricted stock units (RSUs) activity for the nine months ended September 30, 2024 is as follows:

	Number of Shares			Weighted- Average Grant Date Fair Value
Balance, December 31, 2023		3,244,369		$	5.30
RSUs granted		7,872,708			0.16
RSUs vested		(6,123,022	)		1.10
RSUs canceled		(1,140,352	)		3.83
Balance, September 30, 2024		3,853,703		$	1.94

Stock Options

Stock option activity for the nine months ended September 30, 2024 (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, 2023		7,997,004		$	1.78		7.53	$	10
Options granted		92,447,500			0.25		9.42		—
Options exercised		(54,104	)		0.03		—		2
Options expired		(641,973	)		3.72		—		—
Options forfeited		(2,342,939	)		0.89		—		—
Balance, September 30, 2024		97,405,488		$	0.34		9.14	$	1
Vested and Exercisable,    September 30, 2024		3,868,387		$	2.10		2.85	$	1
Vested and Exercisable and Expected to Vest,    September 30, 2024		97,405,488		$	0.34		9.14	$	1

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 nine months ended September 30, 2024 and 2023 was $2.0 thousand and $1.0 thousand, respectively. The fair value of awards vested during the nine months ended September 30, 2024 and 2023 was $1.6 million and $3.1 million, respectively. The weighted-average grant-date fair value per share of stock options granted during the nine months ended September 30, 2024 and 2023 was $0.17 and $0.18, respectively. Of the 97.4 million vested and exercisable and expected to vest shares as of September 30, 2024, 88.1 million was attributable to unvested stock options for Eduardo Iniguez, who resigned as the Company's Chief Executive Officer effective October 15, 2024 (see Note 19 - Subsequent Events). These unvested stock options were forfeited effective upon his resignation date.

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

	Nine Months Ended September 30,
	2024			2023
Expected volatility (%)		73.4	%		81.4	%
Risk-free interest rate (%)		4.3	%		3.6	%
Expected dividend yield		—			—
Expected term (years)		6.8			6.0

The Company recognized stock-based compensation expense related to stock options of $2.2 million and $0.8 million for the three months ended September 30, 2024 and 2023, respectively, and $6.0 million and $2.8 million for the nine months ended September 30, 2024 and 2023, respectively. This expense was included in the consolidated statements of operations and comprehensive loss as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Sales and marketing	$	3	$	10	$	17	$	42
Operations		34		133		175		500
Technology and product development		60		88		190		295
General and administrative		2,145		531		5,642		1,925
Total	$	2,242	$	762	$	6,024	$	2,762

As of September 30, 2024, there was $13.6 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 3.76 years. Of the $13.6 million of total unrecognized compensation as of September 30, 2024, $11.1 million was attributable to unvested stock options for Eduardo Iniguez, who resigned as the Company's Chief Executive Officer effective October 15, 2024 (see Note 19 - Subsequent Events).

The Company recognized stock-based compensation expense related to RSUs of $1.4 million and $2.9 million for the three months ended September 30, 2024 and 2023, respectively, and $5.0 million and $7.2 million for the nine months ended September 30, 2024 and 2023, respectively. This expense was included in the consolidated statements of operations and comprehensive loss as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Sales and marketing	$	75	$	92	$	237	$	313
Operations		332		404		907		1,475
Technology and product development		663		1,042		2,259		2,931
General and administrative		293		1,249		1,589		2,473
Total	$	1,363	$	2,787	$	4,992	$	7,192

As of September 30, 2024, there was $6.7 million of total unrecognized compensation cost related to unvested RSUs that is expected to be recognized over a weighted-average period of 1.12 years.

On July 31, 2024 the shareholders approved an amendment to the Company’s Certificate of Incorporation to effect a reverse stock split of the Company’s common stock at a ratio of not less than 1-for-10 and not greater than 1-for-50, with the exact ratio and effective time of the reverse stock split to be determined by the Board of Directors at any time on or before December 31, 2024.