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Share-Based Compensation | 6 Months Ended
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Jun. 30, 2022
Share-Based Payment Arrangement [Abstract] |
Share-Based Compensation | Share-Based Compensation 2021 Stock Option and Incentive Plan In connection with the Closing of the Business Combination, the Company adopted the 2021 Stock Option and Incentive Plan (the “2021 Plan”), which authorized for issuance 63,575,425 shares of common stock in connection with the Business Combination. The 2021 Plan allowed for the number of authorized shares to increase on the first day of each fiscal year beginning on January 1, 2022 and ending on and including January 1, 2030. Effective January 1, 2022, our Board of Directors authorized the issuance of an additional 8,937,242 shares under this provision. Refer to Note 19 for discussion of an amendment and restatement of the 2021 Plan during the subsequent event period. The 2021 Plan allows for the issuance of stock options, stock appreciation rights, restricted stock, restricted stock units (including performance stock units), dividend equivalents and other stock or cash based awards for issuance to its employees, non-employee directors and non-employee third parties. Shares associated with option exercises and RSU vesting are issued from the authorized pool. During the six months ended June 30, 2022 and 2021, we incurred cash outflows of $5,846 and $28,603, respectively, related to the payment of withholding taxes for vested RSUs. These cash outflows are presented within net cash provided by (used in) financing activities in the unaudited condensed consolidated statements of cash flows. Share-based compensation expense related to stock options, RSUs and PSUs is presented within the following line items in the unaudited condensed consolidated statements of operations and comprehensive income (loss) for the periods indicated:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Technology and product development | $ | 18,342 |  |  | $ | 16,618 |  |  | $ | 35,834 |  |  | $ | 28,234 |
Sales and marketing | 6,008 |  |  | 3,695 |  |  | 11,141 |  |  | 6,140 |
Cost of operations | 4,816 |  |  | 2,709 |  |  | 8,959 |  |  | 4,190 |
General and administrative | 50,976 |  |  | 29,132 |  |  | 101,229 |  |  | 51,044 |
Total | $ | 80,142 |  |  | $ | 52,154 |  |  | $ | 157,163 |  |  | $ | 89,608 |
Stock Options The following is a summary of stock option activity for the period indicated:
| Number of Stock Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term (in years)
Outstanding as of January 1, 2022 | 21,171,147 |  |  | $ | 6.81 |  |  | 5.8
Granted(1) | — |  |  | n/a |  |
Exercised | (1,442,890) |  |  | 1.43 |  |  |
Forfeited | (1,126) |  |  | 6.84 |  |  |
Expired | (92,419) |  |  | 3.06 |  |  |
Outstanding as of June 30, 2022 | 19,634,712 |  |  | $ | 7.23 |  |  | 5.4
Exercisable as of June 30, 2022 | 19,526,150 |  |  | $ | 7.23 |  |  | 5.4
____________________ (1)There were no stock options granted during the six months ended June 30, 2022. Total compensation cost related to unvested stock options not yet recognized as of June 30, 2022 was $3.2 million and will be recognized over a weighted average period of approximately 0.7 years. Restricted Stock Units RSUs are equity awards granted to employees that entitle the holder to shares of our common stock when the awards vest. For employees hired on or after January 1, 2022, new hire RSU grants typically vest 12.5% on the first vesting date, which occurs approximately six months after the date of grant, and ratably each quarter of the ensuing 14-quarter period. For employees hired before January 1, 2022, new hire RSU grants typically vest 25% on the first vesting date, which occurs approximately one year after the date of grant, and ratably each quarter of the ensuing 12-quarter period. RSUs have been issued under other vesting schedules, including grants to existing employees. The following table summarizes RSU activity for the period indicated:
| Number of RSUs |  | Weighted Average Grant Date Fair Value
Outstanding as of January 1, 2022 | 48,687,524 |  | $ | 12.23 |
Granted | 27,687,968 |  | 8.87 |
Replacement Awards(1) | 630,654 |  | 10.69 |
Vested(2) | (11,312,098) |  | 11.74 |
Forfeited | (4,952,182) |  | 10.13 |
Outstanding as of June 30, 2022(3) | 60,741,866 |  | $ | 10.95 |
________________________ (1)In connection with the Technisys Merger, we converted outstanding Technisys performance awards into RSUs to acquire common stock of SoFi, and for which $2,855 of the fair value was attributed to pre-combination services. See Note 2 for additional information. (2)The total fair value, based on grant date fair value, of RSUs that vested during the six months ended June 30, 2022 was $132.8 million. (3)Includes 178,021 RSUs that were granted in 2020 and later modified in an improbable-to-probable modification (Type III), related to which $741 and $1,695 of share-based compensation expense was recorded during the three and six months ended June 30, 2022, respectively. The awards were fully expensed as of June 30, 2022. As of June 30, 2022, there was $631.7 million of unrecognized compensation cost related to unvested RSUs, which will be recognized over a weighted average period of approximately 3.1 years. Performance Stock Units The following table summarizes PSU activity for the period indicated:
| Number of PSUs |  | Weighted Average Grant Date Fair Value
Outstanding as of January 1, 2022 | 22,970,396 |  | $ | 9.52 |
Granted | 122,190 |  | 3.71
Vested | — |  | n/a
Forfeited | (1,295,212) |  | 7.53
Outstanding as of June 30, 2022 | 21,797,374 |  | $ | 9.60 |
Compensation cost associated with PSUs is recognized using the accelerated attribution method for each of the three vesting tranches over the respective derived service period. We determine the grant-date fair value of PSUs utilizing a Monte Carlo simulation model. The following table summarizes the inputs used for estimating the fair value of PSUs granted during the period indicated:
Input |  | Six Months Ended June 30, 2022
Risk-free interest rate |  | 1.6%
Expected volatility |  | 37.7%
Fair value of common stock |  | $12.06
Dividend yield |  | —%
Our use of a Monte Carlo simulation model requires the use of subjective assumptions: •The risk-free interest rate assumption was based on the U.S. Treasury rate at the time of grant commensurate with the remaining term of the PSUs. •The expected volatility assumption was based on the implied volatility of our common stock from a set of comparable publicly-traded companies. •The fair value of our common stock was based on the closing stock price on the date of grant. •We assumed no dividend yield because we have historically not paid out dividends to common stockholders. As of June 30, 2022, there was $103.3 million of unrecognized compensation cost related to unvested PSUs, which will be recognized over a weighted average period of approximately 1.4 years.

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