XML 41 R23.htm IDEA: XBRL DOCUMENT v3.22.2.2
Redeemable Convertible Preferred Stock and Stockholders’ Deficit
 12 Months Ended
Jun. 30, 2022
Equity [Abstract]  
Redeemable Convertible Preferred Stock and Stockholders’ Deficit Redeemable Convertible Preferred Stock and Stockholders’ Equity
Redeemable Convertible Preferred Stock

During the year ended June 30, 2021, we issued 21,836,687 shares of Series G redeemable convertible preferred stock at $19.93 per share for an aggregate purchase amount of $434.9 million. These shares had a liquidation preference of $435.1 million. As part of this equity financing round, the convertible notes issued in April 2020 converted into 4,444,321 shares of Series G-1 redeemable convertible preferred stock. These shares had a liquidation preference of $75.3 million prior to conversion.

On January 12, 2021, prior to our IPO, all outstanding shares of redeemable convertible preferred stock were converted into shares of our common stock on a one-to-one basis and their carrying value of $1.3 billion was reclassified into stockholders' deficit. Following this conversion, we amended and restated our certificate of incorporation to effect a reclassification of each share of our outstanding common stock into ½ share of Class A common stock and ½ share of Class B common stock, with cash paid for fractional shares. As of June 30, 2022 and June 30, 2021, there were no shares of redeemable convertible preferred stock issued and outstanding.

Common Stock

The Company had shares of common stock reserved for issuance as follows:
June 30, 2022June 30, 2021
Available outstanding under stock plan53,158,233 58,417,514 
Available for future grant under stock plan31,156,746 29,793,755 
Total84,314,979 88,211,269 

The common stock is not redeemable. We have two classes of common stock: Class A common stock and Class B common stock. Each holder of Class A common stock has the right to one vote per share of common stock. Each holder of Class B common stock has the right to 15 votes and can be converted at any time into one share of Class A common stock. Holders of Class A and Class B common stock are entitled to notice of any stockholders’ meeting in accordance with the bylaws of the corporation, and are entitled to vote upon such matters and in such manner as may be provided by law. Subject to the prior rights of holders of all classes of stock at the time outstanding having prior rights as to dividends, the holders of the common stock are entitled to receive, when and as declared by the Board of Directors, out of any assets of the corporation legally available therefore, such dividends as may be declared from time to time by the Board of Directors.

Common Stock Warrants

Common stock warrants are included as a component of additional paid in capital within the consolidated balance sheets.

During the year ended June 30, 2022, we granted warrants to purchase 22,000,000 shares of common stock in connection with a commercial agreement with Amazon. 7,000,000 of the warrant shares have an exercise price of $0.01 per share and a term of 3.5 years, while the remaining 15,000,000 warrant shares have an exercise price of $100 per share and a term of 7.5 years. We valued the warrants at the grant date using the Black-Scholes-Merton option pricing model with the following assumptions: a dividend yield of zero; years to maturity of 3.5 and 7.5 years, respectively; volatility of 45%; and a risk-free rate of 0.93% and 1.47%, respectively. In connection with the portion of these warrants that were fully vested upon execution, we recognized a commercial agreement asset of $133.5 million upon execution of the agreement in November 2021. Refer to Note 6. Balance Sheet Components for more information on the asset and related amortization during the period. The remaining grant-date fair value of the warrants will be recognized within our consolidated statements of operations and comprehensive loss as a component of sales and marketing expense as the warrants vest, based upon Amazon’s satisfaction of the vesting conditions. In connection with the warrants, a total of $281.0 million was recognized within sales and marketing
expense during the year ended June 30, 2022, which included $26.3 million in amortization expense of the commercial agreement asset and $254.7 million in expense based upon the grant-date fair value of the warrant shares that vested during the period.


During the year ended June 30, 2021, we granted warrants to purchase 20,297,595 shares of common stock in connection with a commercial agreement with Shopify Inc. The exercise price was $0.01 per share, and the term of the warrants was 10 years. We valued the warrants at the grant date using the Black-Scholes-Merton option pricing model with the following assumptions: a dividend yield of zero, years to maturity of 10 years, volatility of 52%, and a risk-free rate of 0.62%. In connection with these warrants, we recognized an asset of $270.6 million at June 30, 2021 associated with the fair value of the warrants, which were fully vested as of June 30, 2021.

The following table summarizes the warrants activity during the years ended June 30, 2022 and June 30, 2021:
Number of SharesWeighted Average Exercise Price ($)Weighted Average Remaining Life (years)
Warrants outstanding, June 30, 2020
706,065 $2.507.21
Granted20,297,595 0.0110.00
Exercised(20,651,583)0.048.93
Cancelled(352,077)3.808.27
Warrants outstanding, June 30, 2021
— $—0.00
Granted22,000,000 68.195.60
Exercised— —0.00
Cancelled— —0.00
Warrants outstanding, June 30, 2022
22,000,000 $68.195.60
Warrants exercisable, June 30, 2022
3,382,419 $32.524.20
The weighted-average grant date fair values of warrants granted during the years ended June 30, 2022 and June 30, 2021, were $94.20 and $13.34, respectively. On June 30, 2022, the weighted-average grant date fair values for outstanding warrants and exercisable warrants, were $94.20 and $114.77, respectively.