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Stock-based Compensation
 3 Months Ended
Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-based Compensation Stock-based Compensation
Stock-based compensation expense is related to the grant of restricted units under the 2022 Equity Incentive Plan (“2022 Plan”) and the grant of unit options under the 2020 Equity Incentive Plan (“2020 Plan”).
2022 Plan
Executive Incentive Awards – Market condition awards
Certain restricted stock unit (“RSU”) awards granted by the Company are subject to market conditions. These market condition awards are issued upon the achievement (at varying levels) of certain market capitalization thresholds. The Company has an obligation to issue a variable number of shares based on a fixed dollar value divided by the volume weighted-average price per share of the Company’s common stock for a 90-day period preceding each market capitalization achievement date. These awards are liability-classified and require fair value remeasurement at the end of each reporting period. No market condition awards were granted, forfeited, or issued during the three months ended March 31, 2024.
The Company used the Monte Carlo simulation model to value the liability-classified award. The key inputs into the Monte Carlo simulation as of March 31, 2024 and December 31, 2023 were as follows:
March 31,
2024		December 31, 2023
Expected term (in years)10.010.0
Expected stock price volatility (1)
65.0 %65.0 %
Risk-free interest rate (2)
4.1 %3.8 %
Expected dividend yield (3)
— %— %
(1)Expected volatility is based on historical volatilities of a publicly traded peer group over a period equivalent to the expected term of the awards.
(2)The risk-free interest rate is based on the U.S. Treasury yield of treasury bonds with a maturity that approximates the expected term of the awards.
(3)The Company has not historically paid any cash dividends on its common stock.
Key Performance Indicator (“KPI”) awards
KPI awards will be issued upon the satisfaction of certain KPIs as determined annually by the Board. The Company has an obligation to issue a variable number of shares based on a fixed dollar value divided by the volume weighted-average price per share of the Company’s common stock for a 90-day period preceding the issue date. The issue date shall occur no later than 120 days after the end of the applicable year. These awards are liability-classified and require fair value remeasurement at the end of each reporting period. The fair value of the KPI awards is based on the fixed dollar amount that is probable of being paid.
During the fourth quarter of 2023, the KPIs and measurement framework were approved by the Company’s Compensation Committee as it relates to the year ending December 31, 2023. As of December 31, 2023, such KPIs were achieved. A total of 247,898 shares were issued in the first quarter of 2024 with a total fair value of $2,350. Stock-based
compensation expense of $2,062 related to the service provided through March 31, 2024 were recorded in “Selling, general and administrative expense” on the condensed consolidated statements of operations and comprehensive loss.
During the first quarter of 2024, the KPIs and measurement framework related to 2024 KPI awards were approved and granted by the Company’s Compensation Committee as it relates to the year ending December 31, 2024. As of March 31, 2024, the liability was measured based on a probability weighted approach and stock-based compensation expense of $91 related to the service provided through March 31, 2024, was accrued and recorded in “Accrued expenses and other current liabilities” in the condensed consolidated balance sheet.
No KPI awards were forfeited during the three months ended March 31, 2024.
Time-based Awards Activity
A summary of the unvested time-based RSU activity during the three months ended March 31, 2024, was as follows:
Number of SharesWeighted Average Grant Date Fair Value
Outstanding at December 31, 20235,947,487 $8.61 
Granted338,355 $8.46 
Vested(115,895)$6.18 
Forfeited(57,873)$6.51 
Outstanding at March 31, 20246,112,074 $8.66 
2020 Plan
Stock options
The following table summarizes the stock option activity for the three months ended March 31, 2024:
Number of
Options		Weighted
Average
Exercise
Price
Outstanding at December 31, 20231,768,627 $4.71 
Exercised(164,295)$5.57 
Forfeited or expired
(40,755)$5.80 
Outstanding at March 31, 20241,563,577 $4.59 
Stock-based compensation information
The following table summarizes stock-based compensation expenses for the three months ended March 31, 2024 and 2023:
Three Months Ended
March 31,
20242023
Selling, general and administrative expenses$7,423 $3,061 
Product development expenses446 280 
$7,869 $3,341 
Stock-based compensation expense that was capitalized as an asset was $32 and $54 for the three months ended March 31, 2024 and 2023, respectively.