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STOCK INCENTIVE PLANS (Tables) | 12 Months Ended
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Dec. 31, 2021
Share-based Payment Arrangement [Abstract] |
Schedule of RSU Rollforward | During the year ended December 31, 2021, RSU activity was as follows:
| Class A Common Stock(1) |  | LT50 Common Stock(1) |  | Weighted average grant date fair value per share
Outstanding at December 31, 2020 | — |  |  | — |  |  | $ | — |
RSUs granted | 4,351,040 |  |  | 4,323,260 |  |  | $ | 33.79 |
RSUs vested | — |  |  | — |  |  | $ | — |
RSUs cancelled/forfeited/expired | (21,510) |  |  | (21,510) |  |  | $ | 41.06 |
Outstanding at December 31, 2021 | 4,329,530 |  |  | 4,301,750 |  |  | $ | 33.75 |
(1)Class A common stock and LT50 common stock both became effective on November 9, 2021, which is the date of effectiveness of the Company's IPO Registration Statement.
Schedule of Stock Option Roll-forward | A summary of the Company's stock option activity was as follows:
| Shares |  | Weighted average exercise price per share |  | Weighted average remaining contractual life (in years)
Outstanding at December 31, 2019 | 15,545,850 |  |  |  |  |
Options granted | 1,638,020 |  |  | $ | 2.11 |  |  |
Options exercised | (2,777,010) |  |  | $ | 0.47 |  |  |
Options cancelled/forfeited/expired | (894,040) |  |  | $ | 2.57 |  |  |
Outstanding at December 31, 2020 | 13,512,820 |  |  | $ | 0.78 |  |  | 6.35
Exercisable at December 31, 2020 | 13,222,800 |  |  | $ | 0.78 |  |  | 6.31
Options granted | 962,080 |  |  | $ | 8.90 |  |  |
Options exercised | (6,965,767) |  |  | $ | 0.94 |  |  |
Options cancelled/forfeited/expired | (315,940) |  |  | $ | 1.61 |  |  |
Outstanding at December 31, 2021 | 7,193,193 |  |  | $ | 1.87 |  |  | 6.45
Exercisable at December 31, 2021 | 7,001,403 |  |  | $ | 1.81 |  |  | 6.31
Schedule of Fair Value Assumptions for Stock Options | The fair value of option grants was estimated using the Black-Scholes option pricing model with the following weighted average assumptions:
| Year ended December 31,
| 2021 |  | 2020 |  | 2019
Fair value of common stock per share | $ | 12.16 |  |  | $ | 2.66 |  |  | $ | 2.40 |
Exercise price per share | $ | 8.90 |  |  | $ | 2.11 |  |  | $ | 1.02 |
Expected dividend yield (1) | — | % |  | — | % |  | — | %
Risk-free interest rate (2) | 1.1 | % |  | 0.6 | % |  | 2.4 | %
Expected volatility (3) | 51.5 | % |  | 50.5 | % |  | 42.5 | %
Expected life (in years) (4) | 5.98 |  | 5.80 |  | 6.20
(1)The Company has no history or expectation of paying cash dividends on its common stock. (2)The risk-free interest rate is based on the U.S. Treasury yield for a term consistent with the expected life of the awards in effect at the time of grant. (3)The Company estimates the volatility of its common stock at the date of grant based on the expected weighted-average volatility for a group of publicly traded companies in a similar industry or with similar service offerings, with a term of one year or greater. There have been no grants of stock options after the completion of the IPO. (4)The expected life of stock options granted under the option plans is determined using the simplified method, which deems the expected life to be the average of the time-to-vesting and the contractual life of the stock-based awards. The expected life represents the period of time that options granted are expected to be outstanding.
Schedule of Stock-based Compensation Expense | The following table summarizes the stock-based compensation expense recognized for the different stock incentive plans discussed above (in thousands):
| Years ended December 31, |
| 2021 |  | 2020 |  | 2019 |
Stock options | $ | 3,425 |  |  | $ | 2,582 |  |  | $ | 3,487 |  |
Secondary sales of common stock | — |  |  | 15,255 |  |  | — |  |
Restricted stock units | 11,149 |  |  | — |  |  | — |  |
Total | $ | 14,574 |  |  | $ | 17,837 |  |  | $ | 3,487 |  |
Stock-based compensation expense is allocated based on the cost center to which the award holder spent time during the reported periods. Stock-based compensation is included in the following components of expenses on the accompanying consolidated statements of income (in thousands):
| Years ended December 31,
| 2021 |  | 2020 |  | 2019
Cost of revenue, net | $ | 4,115 |  |  | $ | 2,272 |  |  | $ | 846 |
Research and development | 1,617 |  |  | 2,469 |  |  | 741 |
General and administrative | 7,356 |  |  | 12,648 |  |  | 1,496 |
Sales and marketing | 1,486 |  |  | 448 |  |  | 404 |
Total | $ | 14,574 |  |  | $ | 17,837 |  |  | $ | 3,487 |

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- Definition Tabular disclosure of the significant assumptions used during the year to estimate the fair value of stock options, including, but not limited to: (a) expected term of share options and similar instruments, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (f)(2) -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5070-113901 + Details
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