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Stock-Based Compensation | 6 Months Ended
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Jun. 30, 2022
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | 12. Stock-Based Compensation Upon the adoption of ASU 2016-09 on January 1, 2022, the Company elected to recognize forfeitures as they occur. Previously, the Company estimated forfeitures based on historical experience. The change in accounting policy resulted in the recognition of a cumulative effect adjustment to the Company's accumulated deficit as of January 1, 2022 in the amount of $629. Stock Plans The Company maintains its 2021 Long-Term Incentive Plan ("2021 Plan") under which it grants stock awards to its employees, directors and non-employee third parties. On January 1, 2022, the number of shares of common stock available to issue under the 2021 Plan automatically increased by 9,840,242 shares. As of June 30, 2022, the Company had 18,557,472 shares allocated to the 2021 Plan, but not yet issued or granted as an award. The Company also maintains its 2021 Employee Stock Purchase Plan ("ESPP"), under which eligible employees may purchase the Company’s common stock through accumulated payroll deductions. Options to purchase shares are granted twice a year on or about November 1 and May 1 and are exercisable on or about the succeeding April 30 and October 31, respectively, of each year. Shares are purchased at purchase prices equal to 85% of the fair market value of the Company’s common stock at the lower of the grant date or purchase date. No participant may purchase more than $25 worth of the Company’s common stock in a year. The ESPP's initial purchase period began in January 2022. Initially, the number of shares of common stock reserved for issuance pursuant to the ESPP was 2,703,452 when it became effective upon the consummation of the Company’s initial public offering. The number of shares of the Company's common stock reserved for issuance under the ESPP automatically increases on January 1 of each year for a period of up to ten years, beginning on January 1, 2022 and continuing through January 1, 2031, by the lesser of (i) 1% of the total number of shares of our common stock outstanding on December 31 of the immediately preceding year or (ii) 2,703,452 shares, provided that before the date of any such increase, our board of directors may determine that such increase will be less than the amount set forth in clauses (i) and (ii). Shares issuable pursuant to the ESPP may be authorized, but unissued, or reacquired shares of our common stock. On January 1, 2022, the number of shares of common stock reserved for issuance under the ESPP increased by 1,968,048. As of June 30, 2022, the number of shares of common stock reserved for issuance under the ESPP was 4,584,950. Stock Options Stock options granted under the Company's current and prior equity incentive plans have various vesting periods ranging from fully-vested on the date of grant to vesting over a period of three or four years. The term for each incentive stock option under these plans is ten years from the grant date, or five years for a grant to a ten percent owner optionee, in each case assuming continued employment. The fair value of options granted is estimated on the date of grant using the Black-Scholes option-pricing model. Stock option activity for the six months ended June 30, 2022 was as follows:
|  | As of June 30, 2022 |
|  | Number of Stock Options Outstanding |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Life |  |  | Aggregate Intrinsic Value |
Balance as of December 31, 2021 |  |  | 5,301,146 |  |  | $ | 8.25 |  |  |  | 7.71 |  |  | $ | 36,853 |
Granted |  |  | 2,526,126 |  |  |  | 8.04 |  |  |  |  |  |  |
Exercised |  |  | (152,322 | ) |  |  | 2.79 |  |  |  |  |  |  |
Cancelled |  |  | (57,268 | ) |  |  | 7.50 |  |  |  |  |  |  |
Expired |  |  | (21,452 | ) |  |  | 2.14 |  |  |  |  |  |  |
Balance as of June 30, 2022 |  |  | 7,596,230 |  |  | $ | 8.31 |  |  |  | 8.07 |  |  | $ | 6,037 |
Vested and exercisable |  |  | 2,944,325 |  |  | $ | 6.41 |  |  |  | 6.52 |  |  | $ | 5,424 |
Vested and expected to vest |  |  | 7,596,230 |  |  | $ | 8.31 |  |  |  | 8.07 |  |  | $ | 6,037 |
As of June 30, 2022, the total unamortized stock-based compensation expense related to the unvested stock options was $16,583, which the Company expects to amortize over a weighted average period of 2.9 years. Restricted Stock Units RSUs have a vesting period generally of one, two and four years. Any unvested RSUs are forfeited upon termination of employment. The grant date value of RSUs is equal to the closing price of the Company’s stock on the date of grant, or, if not a trading day, the closing price of the previous trading day. RSUs granted prior to the Company's IPO have a term of seven years, or three years for time vested RSUs after termination of employment and are also subject to a performance condition upon a predefined liquidity event such as an IPO or a change in control. Because the probability of performance condition occurring could not be estimated, no compensation expense was recognized related to the RSUs prior to the Company's IPO on October 15, 2021. Prior to the IPO, RSUs were valued at the estimated value of a share of common stock at the date of grant. RSU activity for the six months ended June 30, 2022 was as follows:
|  | Restricted Stock Units |
|  | Number of Restricted Stock Units Outstanding |  |  | Weighted Average Grant Date Fair Value |  |  | Aggregate Intrinsic Value |
Balance as of December 31, 2021 |  |  | 3,476,841 |  |  | $ | 13.37 |  |  |  |
Granted |  |  | 6,201,968 |  |  |  | 8.01 |  |  |  |
Released |  |  | (1,026,701 | ) |  |  | 11.60 |  |  |  |
Cancelled |  |  | (591,654 | ) |  |  | 11.26 |  |  |  |
Expired |  |  | (16,790 | ) |  |  | 8.04 |  |  |  |
Balance as of June 30, 2022 |  |  | 8,043,664 |  |  | $ | 9.62 |  |  | $ | 49,388 |
As of June 30, 2022, the total unamortized stock-based compensation expense related to the unvested RSUs was $59,982, which the Company will amortize over a weighted average period of 3.0 years upon satisfaction of the performance condition. Stock-Based Compensation Expense Stock-based compensation expense from stock options and RSUs, reduced for actual forfeitures, was included in the following line items in the accompanying consolidated statement of operations:
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Cost of revenues |  | $ | 1,130 |  |  | $ | 84 |  |  | $ | 2,055 |  |  | $ | 140 |
Sales and marketing |  |  | 1,355 |  |  |  | 201 |  |  |  | 2,231 |  |  |  | 358 |
Research and development |  |  | 2,124 |  |  |  | 185 |  |  |  | 3,888 |  |  |  | 286 |
General and administrative |  |  | 3,504 |  |  |  | 635 |  |  |  | 6,534 |  |  |  | 1,168 |
Total |  | $ | 8,113 |  |  | $ | 1,105 |  |  | $ | 14,708 |  |  | $ | 1,952 |
Employee Stock Purchase Plan Stock-based compensation expense from the ESPP was $145 and $341 during the three and six months ended June 30, 2022. ESPP expense is based on the estimated fair value of the option to purchase shares at a discount and uses grant date inputs including the purchase discount, expected contributions and stock price.

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