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Stock-Based Compensation (Tables) | 9 Months Ended
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Sep. 30, 2021
Share-based Payment Arrangement [Abstract] |
Schedule of stock-based compensation costs | The following table shows the stock-based compensation cost by award type for the periods indicated:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
(in thousands) |  |  |  |  |  |  |
Equity classified awards | $ | 9,970 |  |  | $ | 1,052 |  |  | $ | 24,620 |  |  | $ | 3,258 |
Liability classified awards | (684) |  |  | 1,316 |  |  | 6,361 |  |  | 2,141 |
Total stock-based compensation | $ | 9,286 |  |  | $ | 2,368 |  |  | $ | 30,981 |  |  | $ | 5,399 |
The following table sets forth the total stock-based compensation cost included in the Company’s condensed consolidated statements of operations and comprehensive income or capitalized to assets for the periods indicated:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
(in thousands) |  |  |  |  |  |  |
Cost of revenue |  |  |  |  |  |  |
Connected machines | $ | 10 |  |  | $ | 2 |  |  | $ | 26 |  |  | $ | 5 |
Subscriptions | 66 |  |  | 7 |  |  | 154 |  |  | 22 |
Accessories and materials | — |  |  | — |  |  | — |  |  | — |
Total cost of revenue | 76 |  |  | 9 |  |  | 180 |  |  | 27 |
Research and development | 3,590 |  |  | 716 |  |  | 10,999 |  |  | 1,984 |
Sales and marketing | 2,777 |  |  | 1,166 |  |  | 10,809 |  |  | 2,278 |
General and administrative | 1,703 |  |  | 297 |  |  | 5,953 |  |  | 672 |
Total stock-based compensation expense | $ | 8,146 |  |  | $ | 2,188 |  |  | $ | 27,941 |  |  | $ | 4,961 |
Capitalized for software development costs | $ | 476 |  |  | $ | 56 |  |  | $ | 1,149 |  |  | $ | 181 |
Capitalized to inventory | $ | 664 |  |  | $ | 124 |  |  | $ | 1,891 |  |  | $ | 257 |
Total stock-based compensation | $ | 9,286 |  |  | $ | 2,368 |  |  | $ | 30,981 |  |  | $ | 5,399 |
Schedule of restricted stock unit activity | A summary of the Company’s RSU activity under the 2021 Equity Incentive Plan is as follows:
| Number of RSUs |  | Weighted- Average Grant Date Fair Value (per share)
Outstanding at December 31, 2020 | — |  |  | $ | — |
Granted | 4,696,833 |  |  | $ | 23.38 |
Vested | (105,901) |  |  | $ | 20.00 |
Forfeited/cancelled | (47,500) |  |  | $ | 23.61 |
Outstanding at September 30, 2021 | 4,543,432 |  |  | $ | 23.46 |
A summary of the RSU equivalent activity under the 2021 Equity Incentive Plan is as follows:
| Number of RSU Equivalents |  | Weighted- Average Base Price |  | Aggregate Intrinsic Value
|  |  |  |  | (in thousands)
Outstanding at December 31, 2020 | — |  |  |  |  |
Granted | 94,304 |  |  | 20.00 |  |  |
Vested | (11,305) |  |  | $ | 20.00 |  |  | $ | 391 |
Outstanding at September 30, 2021 | 82,999 |  |  | $ | 20.00 |  |  | $ | 1,729 |
Schedule of stock option activity | A summary of the Company’s stock option activity under the 2021 Equity Incentive Plan is as follows:
| Number of Options |  | Weighted- Average Exercise Price |  | Weighted- Average Remaining Term (Years) |  | Aggregate Intrinsic Value
|  |  |  |  |  |  | (in thousands)
Outstanding at December 31, 2020 | — |  |  | $ | — |  |  |  |  |
Granted | 3,419,359 |  |  | 20.00 |  |  |  |  |
Exercised | (5,417) |  |  | 20.00 |  |  |  |  |
Forfeited/cancelled | (80,241) |  |  | 20.00 |  |  |  |  |
Outstanding at September 30, 2021 | 3,333,701 |  |  | $ | 20.00 |  |  | 6.1 |  | $ | 25,269 |
Vested and exercisable at September 30, 2021 | 1,030,288 |  |  | $ | 20.00 |  |  | 5.4 |  | $ | 7,810 |
The Company’s options to purchase Class B common stock resulted from the Corporate Reorganization and are not part of the 2021 Equity Incentive Plan. A summary of the Company stock option activity for the options to purchase shares of Class B common stock is as follows:
| Number of Options |  | Weighted- Average Exercise Price |  | Weighted- Average Remaining Term (Years) |  | Aggregate Intrinsic Value
|  |  |  |  |  |  | (in thousands)
Outstanding at December 31, 2020 | — |  |  |  |  |  |  |
Granted | 522,000 |  |  | $ | 9.04 |  |  |  |  |
Forfeited / Cancelled | (72,000) |  |  | $ | 9.04 |  |  |  |  |
Outstanding at September 30, 2021 | 450,000 |  |  | $ | 9.04 |  |  | 4.1 |  | $ | 8,343 |
Vested at September 30, 2021 | 2,000 |  |  | $ | 9.04 |  |  | 0.2 |  | $ | 37 |
A summary of option activity for the nine months ended September 30, 2021 is as follows:
| Number of Options |  | Weighted- Average Exercise Price |  | Aggregate Intrinsic Value
|  |  |  |  | (in thousands)
Outstanding at December 31, 2020 | 1,140,000 |  |  | $ | 4.52 |  |  | $ | 3,283 |
Granted | 27,027 |  |  | $ | 7.40 |  |  |
Exercised | (27,027) |  |  | $ | 7.40 |  |  | $ | 52 |
Forfeited | (84,000) |  |  | $ | 4.52 |  |  |
Cancelled upon Corporate Reorganization | (1,056,000) |  |  | $ | 4.52 |  |  |
Outstanding at September 30, 2021 | — |  |  | $ | — |  |  | $ | — |
Vested at September 30, 2021 | — |  |  | $ | — |  |  | $ | — |
Schedule of weighted-average valuation assumptions | The weighted-average grant date fair value of options granted under the 2021 Equity Incentive Plan during the nine months ended September 30, 2021 was $8.79 per share based on the following weighted-average assumptions:
| Nine Months Ended September 30, 2021
Expected volatility | 51.6 | %
Risk-free interest rate | 0.8 | %
Expected term (in years) | 4.9
Expected dividend | — | %
The weighted-average grant date fair value of options to purchase Class B common stock during the nine months ended September 30, 2021 was $13.42 per share based on the following weighted-average assumptions:
| Nine Months Ended September 30, 2021
Expected volatility | 51.4 | %
Risk-free interest rate | 0.8 | %
Expected term (in years) | 5.5
Expected dividend | — | %
Schedule of nonvested share activity | The Company’s unvested Class B common stock resulted from the Corporate Reorganization and is not part of the 2021 Equity Incentive Plan. Activity related to Class B common stock subject to future vesting for the nine months ended September 30, 2021 is as follows:
| Number of Unvested Shares |  | Weighted- Average Grant Date Fair Value (per share)
Outstanding at December 31, 2020 | — |  |  |
Granted | 14,037,505 |  |  | $ | 20.00 |
Vested | (1,031,920) |  |  | $ | 20.00 |
Forfeited / Cancelled | (249,679) |  |  | $ | 20.00 |
Outstanding at September 30, 2021 | 12,755,906 |  |  | $ | 20.00 |
The following table summarizes the unvested equity classified incentive units activity for the nine months ended September 30, 2021:
| Number of Awards |  | Weighted- Average Grant Date Fair Value Per Unit
Unvested at December 31, 2020 | 37,116,025 |  |  | $ | 0.74 |
Granted | 1,548,223 |  |  | $ | 9.06 |
Vested | (7,123,673) |  |  | $ | 0.40 |
Forfeited | (82,500) |  |  | $ | 0.79 |
Cancelled upon Corporate Reorganization | (31,458,075) |  |  | $ | 1.23 |
Unvested at September 30, 2021 | — |  |  | $ | — |
Schedule of equity classified incentive units | A summary of the equity classified incentive units activity for the nine months ended September 30, 2021 is as follows:
| Equity Incentive Units |  | Weighted- Average Participation Threshold |  | Aggregate Intrinsic Value
|  |  |  |  | (in thousands)
Outstanding at December 31, 2020 | 93,371,324 |  |  | $ | 0.97 |  |  | $ | 600,316 |
Granted | 1,548,223 |  |  | $ | — |  |  |
Exercised | — |  |  | $ | — |  |  |
Forfeited | (82,500) |  |  | $ | 1.29 |  |  |
Cancelled upon Corporate Reorganization | (94,837,047) |  |  | $ | 0.95 |  |  |
Outstanding at September 30, 2021 | — |  |  | $ | — |  |  | $ | — |
Vested at September 30, 2021 | — |  |  | $ | — |  |  | $ | — |
Schedule of liability classified incentive unit equivalents activity | A summary of the liability classified incentive unit equivalents activity for the nine months ended September 30, 2021 is as follows:
| Liability Incentive Equivalents |  | Weighted- Average Participation Threshold |  | Aggregate Intrinsic Value
|  |  |  |  | (in thousands)
Outstanding at December 31, 2020 | 2,851,516 |  |  | $ | 2.13 |  |  | $ | 15,017 |
Granted | 320,000 |  |  |  |  |
Forfeited | (4,000) |  |  |  |  |
Cancelled upon Corporate Reorganization | (3,167,516) |  |  | $ | 1.92 |  |  |
Outstanding at September 30, 2021 | — |  |  | $ | — |  |  | $ | — |
Exercisable at September 30, 2021 | — |  |  | $ | — |  |  | $ | — |
Vested and expected to vest at September 30, 2021 | — |  |  | $ | — |  |  | $ | — |
Schedule of unvested liability classified incentive unit equivalents activity | The following table summarizes the unvested liability classified incentive unit equivalents activity for the nine months ended September 30, 2021:
| Number of Awards |  | Weighted- Average Grant Date Fair Value Per Unit
Unvested at December 31, 2020 | 2,851,516 |  |  | $ | 1.74 |
Granted | 320,000 |  |  | $ | 8.19 |
Forfeited | (4,000) |  |  | $ | 6.58 |
Cancelled upon Corporate Reorganization | (3,167,516) |  |  | $ | 2.39 |
Unvested at September 30, 2021 | — |  |  | $ | — |
Summary of liability classified incentive unit equivalents rollforward | Liability classified incentive unit equivalents were included in accrued expenses per the Company’s consolidated balance sheets and the rollforward of this liability is as follows (in thousands):
| Nine Months Ended September 30, 2021
Balance at December 31, 2020 | $ | 5,702 |
Stock-based compensation during period | $ | 6,041 |
Settlement or modification of awards | $ | (11,743) |
Balance at September 30, 2021 | $ | — |

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