STOCK-BASED COMPENSATION

6 Months Ended

Jun. 30, 2023

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

NOTE 14 – 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 six months ended June 30, 2023:

	Options
Outstanding at December 31, 2022	34,923,788
Granted	—
Exercised	(4,503,919)
Forfeited	(462,149)
Outstanding at June 30, 2023	29,957,720
Exercisable at June 30, 2023	26,775,173

The weighted average exercise price of the options outstanding as of June 30, 2023 was $2.12 per share.

The following table summarizes the RSUs activity under our equity incentive plans as of June 30, 2023:

	Units
Outstanding December 31, 2022	25,853,581
Granted	14,986,204
Vested	(4,809,569)
Withhold to cover shares repurchased	(351,960)
Forfeited	(1,315,860)
Outstanding June 30, 2023	34,362,396

In the six months ended June 30, 2023, the Company granted 14,086,204 RSUs under the Company’s Omnibus Stock Incentive Plan, which are subject to time-vesting and continued service conditions. In the same period, the Company granted an additional 900,000 RSUs under the same Plan, which are subject to time-vesting and continued service conditions as well as stock performance targets.

On May 23, 2023, we started to withhold common stock shares associated with net share settlements to cover tax withholding obligations upon the vesting of restricted stock units under our employee equity incentive plans in the United States. During the three and six months ended June 30, 2023, we withheld 351,960 shares for $1,504. RSU vesting is shown net of this withholding on our condensed consolidated statements of shareholders’ equity and cash flows.

Employee Stock Purchase Plan

As of June 30, 2023, approximately 5,591,191 shares were reserved for future issuance under the Company’s Employee Stock Purchase Plan (“ESPP”). The fair value attributable to the ESPP was $1,688,215 as of May 15, 2023, the beginning of the current offering period, and was measured using the Monte Carlo model. The current offering period is expected to close November 15, 2023. The expense associated with the ESPP recognized during the three and six months ended June 30, 2023 was $860,471 and $1,901,735, respectively.

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				Six months ended
	June 30,				June 30,
	2023		2022		2023		2022
Other operating expenses	$	3,243	$	2,606	$	6,042	$	5,663
Research and development expenses		3,599		2,387		6,982		4,600
Sales and marketing expenses		4,574		3,642		10,550		7,407
General and administrative expenses		4,757		3,255		9,526		7,128
Total stock-based compensation	$	16,173	$	11,890	$	33,100	$	24,798

NOTE 14 – STOCK-BASED COMPENSATION (continued):

Note that $878 and $271 in stock-based compensation awards were capitalized as part of internal-use software during the three months ended June 30, 2023 and 2022, respectively, and $1,740 and $488 were capitalized during the six months ended June 30, 2023 and 2022, respectively.