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STOCK-BASED COMPENSATION
 3 Months Ended
Mar. 31, 2025
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION
8. STOCK-BASED COMPENSATION
2020 Equity Incentive Plan
In April 2020, the Board of Directors of D-Wave Systems approved the 2020 Equity Incentive Plan (the "2020 Plan") which provides for the grant of qualified incentive stock options ("ISO") and non-qualified stock options ("NSO"), restricted stock, RSU or other awards to the Company’s employees, officers, directors, advisors, and outside consultants. Following the Merger, awards outstanding under the 2020 Plan will continue to be governed by the 2020 Plan; however, the Company will not grant any further awards under the 2020 Plan.
2022 Equity Incentive Plan
On August 5, 2022, the shareholders approved the D-Wave Quantum Inc. 2022 Equity Incentive Plan (the “2022 Plan”), which became effective immediately upon the closing of the Merger. While the 2022 Plan allows for the issuance of awards with a service condition, a performance condition, a market condition, or some combination of the three, to date, the Company has only issued awards subject to a service condition. Awards issued under the 2022 Plan have vesting periods ranging from under 1 year to 4 years from the original grant date, and all awards issued to date under the 2022 Plan will expire 10 years from the original grant date.
Share-based compensation awards are settled by issuing new shares.
Common stock option activity
The following table summarizes the Company’s stock option activity during the periods presented (in thousands except share and per share data):
Number of optionsWeighted  average  exercise  price  ($)Weighted average remaining contractual term (years)Aggregate intrinsic value ($)
Outstanding as of December 31, 202410,984,7381.67 6.6475,270 
Granted—— 
Exercised(26,042)0.89 
Forfeited and expired(5,829)0.85 
Outstanding as of March 31, 202510,952,8671.67 6.3966,892 
Options exercisable as of March 31, 20259,560,0741.51 6.1059,661 
Options unvested as of March 31, 20251,392,7932.72 8.387,230 
Restricted stock unit awards
The following table summarizes the restricted stock unit ("RSU") activity and related information under the 2022 Plan (in thousands except share and per share data):
Number of RSUsWeighted average Grant Date Fair Value ($)
Unvested as of December 31, 20248,787,022 2.25 
Granted3,758,163 9.67 
Forfeited and expired(65,524)3.16 
Vested(1,236,719)1.82 
Unvested as of March 31, 202511,242,942 4.77 
Employee Stock Purchase Plan
During the three months ended March 31, 2025, zero shares of common shares were issued under the Employee Stock Purchase Plan.
Stock-based compensation expense
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 March 31,
20252024
Cost of revenue$142 $175 
Research and development1,4541,121
General and administrative1,8171,958
Sales and marketing580255
Total stock-based compensation$3,993 $3,509 
During the years ended March 31, 2025 and 2024, total compensation cost capitalized as part of property and equipment and intangible assets was $0.1 million and zero, respectively.
As of March 31, 2025, total unrecognized stock-based compensation cost, net of estimated forfeitures, related to our unvested stock awards was $51.8 million. This amount is based on an estimated future forfeiture rate of 2.34% per year and will be recognized over a weighted-average period of approximately 3.69 years.