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Stock Based Compensation | 6 Months Ended
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Jun. 30, 2023
Share-Based Payment Arrangement [Abstract] |
Stock Based Compensation | Stock Based Compensation Stock Options The Company’s stock options generally vest on various terms based on continuous services over periods ranging from three to five years. The stock options are subject to time vesting requirements through 2032 and are nontransferable. Stock options granted have a maximum contractual term of 10 years. On June 30, 2023, approximately 3.0 million employee stock options had vested. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model. Before the Company’s shares of stock were publicly traded, management took the average of several publicly traded companies that were representative of the Company’s size and industry in order to estimate its expected stock volatility. The expected term of the options represented the period of time the instruments are expected to be outstanding. The Company based the risk-free interest rate on the rate payable on the U.S. Treasury securities corresponding to the expected term of the awards at the date of grant. Expected dividend yield was zero based on the fact that the Company had not historically paid and does not intend to pay a dividend in the foreseeable future. The following assumptions were used to compute the fair value of the stock option grants during the period ended June 30, 2023 and 2022:
| Period Ended June 30,
| 2023 |  | 2022
Risk-free interest rate | 4.14 | % |  | 0.71 | %
Expected term (in years) | 6.25 |  | 4
Volatility | 56 | % |  | 60 | %
Dividend yield | 0 | % |  | 0 | %
The following table summarizes the Company’s stock option activity under the Plan for the period ended June 30, 2023:
| Options Shares |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Life in Years |  | Aggregate Intrinsic Value
Balance as of, December 31, 2022 | 11,571,308 |  | $ | 7.11 |  |  | 9.05 |  | $ | 39,389,063 |
Granted/ Vested during the year | 312,730 |  |  | 8.61 |  |  | — |  |  | — |
Exercised during the year | (356,511) |  |  | 2.74 |  |  | — |  |  | — |
Cancelled during the year | (275,135) |  |  | 7.82 |  |  | — |  |  | — |
Balance as of June 30, 2023 | 11,252,392 |  |  | 7.28 |  |  | 8.62 |  | 46,592,930 |
Options vested and exercisable at June 30, 2023 | 3,005,069 |  |  | $ | 6.36 |  |  | 7.89 |  | 9,093,754 |
The aggregate intrinsic value in the above table is calculated as the difference between fair value of the Company’s common stock price and the exercise price of the stock options. The weighted average grant date fair value per share for stock option grants during the periods ended June 30, 2023 and December 31, 2022 was $8.61 and $7.04, respectively. On June 30, 2023 and December 31, 2022, the total unrecognized compensation related to unvested stock option awards granted was $30,583,415 and $41,666,564, respectively, which the Company expects to recognize over a weighted-average period of approximately 3.73 years. Restricted Stock Units The fair value of restricted stock units (“RSUs”) is determined on the date of grant. The Company records compensation expense in the unaudited Condensed Consolidated Statement of Operations and Comprehensive (Loss) Income on a straight-line basis over the vesting period for RSUs. The vesting period for employees and members of the Board of Directors ranges from one to four years. Activity under RSUs was as follows:
| RSUs |  | Weighted- Average Grant Date Fair Value Per RSU
Balance as of, December 31, 2022 | 305,587 |  | $ | 8.35 |
Granted | 101,358 |  | 7.64 |
Vested during the year | (136,258) |  | 8.02 |
Forfeited | — |  | — |
Balance as of, June 30, 2023 | 270,687 |  | 8.25 |
Vested and unissued at June 30, 2023 | 192,500 |  | 8.25 |
Non-vested at June 30, 2023 | 270,687 |  | 8.25 |
The total grant-date fair value of RSUs granted during the period ended June 30, 2023 was $774,218. The Company recorded stock-based compensation expense related to RSUs of $663,748 and $1,093,423 for the three and six months ended June 30, 2023, respectively, As of June 30, 2023, the Company had $2,232,968 in unrecognized compensation cost related to non-vested RSUs, which is expected to be recognized over a weighted-average period of approximately 0.8 years.

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