The following table summarizes the Company’s stock option activity during the periods presented (in thousands except share and per share data):


	Number of options outstanding	Weighted average exercise price ($)		Weighted average remaining contractual term (years)	Aggregate intrinsic value ($)
Balance as of December 31, 2022	15,387,546	$	1.76	7.12	$	8,763
Granted	—	—		—	—
Exercised	(2,329,067)	0.81		—	144
Forfeited	(1,019,743)	3.57		—	—
Expired	(388,956)	2.36		—	—
Balance as of September 30, 2023	11,649,780	$	1.66	7.32	$	1,618
Options exercisable as of September 30, 2023	9,809,565	$	1.24	7.13	$	1,438
Options unvested as of September 30, 2023	1,840,072	$	3.89	8.35	$	180

As of September 30, 2023, out of the total 11,649,780 options that have been issued and are currently outstanding, 10,587,799 options were originally granted under the 2020 Equity Incentive Plan (the "2020 Plan"). These options will be converted applying the conversion ratio of 0.889657 (the "Conversion Ratio") into 9,419,509 Common Shares upon exercise.

The aggregate intrinsic value of stock options was calculated as the difference between the exercise price of the stock options and the estimated fair value of the Common Shares for those stock options that had exercise prices lower than the fair value of the Common Shares.

As of September 30, 2023, total unrecognized compensation cost related to unvested stock option grants was approximately $5.6 million. This amount is expected to be recognized over a weighted average period of approximately 0.81 years.

The total fair values of the stock options vested during the nine months ended September 30, 2023 and 2022 was $3.1 million and $3.1 million respectively.

RSUs granted to employees under D-Wave's 2022 Equity Incentive Plan (the "2022 Plan") generally vest 25% on the first anniversary of the grant date, and then 6.25% each quarter subsequent to the first anniversary for twelve quarters. RSUs granted to members of the Board of Directors are subject to a service condition, and generally will be fully vested on the date of the Company's 2024 annual shareholder meeting.


	Number of Outstanding	Weighted average Grant Date Fair Value ($)
Unvested as of December 31, 2022	8,143,304	$	5.69
Granted	4,423,933	0.89
Forfeited	(1,446,883)	4.63
Vested	(167,605)	4.02
Unvested as of September 30, 2023	10,952,749	$	3.93
Expected to vest as of September 30, 2023	10,436,290	$	3.97

As of September 30, 2023, the unrecognized stock-based compensation cost related to the RSUs was $24.3 million, which is expected to be recognized over a weighted-average period of 2.38 years.

In August 2022, the Company established the 2022 Employee Stock Purchase Plan (the "ESPP"). During the nine months ended September 30, 2023, 226,453 shares of common stock were issued under the ESPP.

The following table summarizes the stock-based compensation expense classified in the condensed consolidated statements of operations and comprehensive loss as follows (in thousands):


	Three months ended September 30,
	2023		2022
Cost of revenue	$	353	$	45
Research and development	2,347		360
General and administrative	2,913		644
Sales and marketing	271		732
Total stock-based compensation	$	5,884	$	1,781


	Nine months ended September 30,
	2023		2022
Cost of revenue	$	963	$	80
Research and development	6,771		536
General and administrative	8,849		1,948
Sales and marketing	779		791
Total stock-based compensation	$	17,362	$	3,355