STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2022

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

NOTE 10 – STOCK-BASED COMPENSATION

Stock Options and RSUs

The following table summarizes the options to purchase shares of common stock activity under our equity incentive plans for the nine months ended September 30, 2022:

	Options
Outstanding at December 31, 2021	44,940,169
Granted	500,000
Exercised	(7,603,954)
Forfeited	(1,900,412)
Outstanding at September 30, 2022	35,935,803
Exercisable at September 30, 2022	28,035,432

The weighted average exercise price of the options outstanding as of September 30, 2022 was $4.46 per share.

The following table summarizes the RSUs activity under our equity incentive plans as of September 30, 2022:

	Units
Outstanding December 31, 2021	9,725,027
Awarded	18,153,187
Vested	(2,194,649)
Forfeited	(1,804,219)
Outstanding September 30, 2022	23,879,346

In the nine months ended September 30, 2022, the Company granted options and RSUs that vest over a four-year period from the grant date.

On July 1, 2022, the Board of Directors approved the grant of equity awards to the Co-Chief Executive Officer of the Company who was appointed by the Board of Directors on May 24, 2022 (effective as of May 25, 2022), in accordance with the terms of his employment agreement. The total fair value of the equity awards granted was $14,534 and the associated expense will be recognized in accordance with the applicable conditions. The equity awards granted under the Company’s equity incentive plan consists of options and RSUs subject to certain vesting criteria including time, service and performance targets.

Employee Stock Purchase Plan

The Company initiated, on May 16, 2022, the first offering period under the Company’s Employee Stock Purchase Plan (the “ESPP”), the purpose of which is to provide employees of the Company and its designated subsidiaries with an opportunity to purchase Company Common Stock at a discount through payroll deductions and to help eligible employees provide for their future security and to encourage them to remain in the employment of the Company.

Each eligible employee enrolling for any offering period under the ESPP is required to designate a whole percentage of their monthly payroll to be withheld by the Company or the designated subsidiary employing such eligible employee on each payday during the applicable offering period. The designated deduction percentage may not be less than 1% and may not be more than 15% of the employee’s salary subject to a maximum $25 per year, unless otherwise determined by the Company for any specific offering period. Any offering period is comprised of one or more 6 months’ purchase periods, at the last trading day of each (a “Purchase Date”), the Company will use the total amount deducted from each participant, subject to quantity limitations determined by the Company for such offering period, to issue such participant with such number of Company shares based on a purchase price which shall not be less than 85% of the closing sales price for a Company share on the first trading day of the applicable offering period or on the relevant Purchase Date, whichever is lower. The fair value attributable to the plan was $1,646 as of September 30, 2022 and was measured using the Monte Carlo model. The expense associated with the ESPP recognized during the three and nine months ended September 30, 2022 was $823 and $1,234, respectively.

NOTE 10 – STOCK-BASED COMPENSATION (continued)

The impact on our results of operations of recording stock-based compensation expense under the Company’s equity incentive plans, including the ESPP, were as follows:

	Three Months Ended				Nine months ended
	September 30,				September 30,
	2022		2021		2022		2021
Other operating expenses	$	2,626	$	1,860	$	8,289	$	5,486
Research and development expenses		2,779		1,405		7,380		3,457
Sales and marketing expenses		3,656		2,592		11,062		7,170
General and administrative expenses		4,464		2,733		11,592		7,444
Total stock-based compensation	$	13,525	$	8,590	$	38,323	$	23,557