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Stock-based compensation | 9 Months Ended
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Sep. 30, 2023
Share-Based Payment Arrangement [Abstract] |
Stock-based compensation | 11. Stock-based Compensation For the nine months ended September 30, 2023 and 2022, stock-based compensation is associated with stock options, restricted stock units ("RSUs"), and the Company's Employee Stock Purchase Plan ("ESPP"). 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 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 $3.1 million respectively. Restricted stock unit awards RSUs granted to employees under D-Wave's 2022 Equity Incentive Plan (the "2022 Plan") generally vest 25% on the first anniversary of the grant date, and then 6.25% each quarter subsequent to the first anniversary for twelve quarters. RSUs granted to members of the Board of Directors are subject to a service condition, and generally will be fully vested on the date of the Company's 2024 annual shareholder meeting. The following table summarizes the RSU activity and related information under the 2022 Plan:
| Number of Outstanding |  | Weighted average Grant Date Fair Value ($)
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. Employee Stock Purchase Plan 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. 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 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 |

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