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STOCK-BASED COMPENSATION
 9 Months Ended
Sep. 30, 2021
Share-based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
Under both the Stem, Inc. 2009 Equity Incentive Plan (the “2009 Plan”) and the Stem Inc. 2021 Equity Incentive Plan (the “2021 Plan,” and together with the 2009 Plan, the “Plans”), the Company can grant stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”) and other awards that are settled in shares of the Company’s common stock. The Plans permit net settlement of vested awards, pursuant to which the award holder forfeits a portion of the vested award to satisfy the purchase price (in the case of stock options), the holder’s withholding tax obligation, if any, or both. When the holder net settles the tax obligation, the Company pays the amount of the withholding tax to the U.S. government in cash, which is accounted for as an adjustment to additional paid-in-capital. The Company does not intend to grant new awards under the 2009 Plan. At September 30, 2021, 8,166,991 stock options were outstanding under the 2009 Plan. In May 2021, the Company issued awards under the 2021 Plan, with 23,722,254 shares reserved thereunder.

Stock Options

Under the Plans, the exercise price of an option cannot be less than 100% of the fair value of one share of common stock for incentive or non-qualified stock options, and not less than 110% of the fair value for stockholders owning greater than 10% of all classes of stock, as determined by the Company’s Board of Directors (the “Board”). Options under the Plans generally expire after 10 years. Under the Plans, the Compensation Committee of the Board determines when the options granted will become exercisable. Options granted under the Plans generally vest 1/4 one year from the grant date and then 1/48 each month over the following three years and are exercisable for 10 years from the date of the grant. The Plans allow for exercise of unvested options with repurchase rights over the restricted common stock issued at the original exercise price. The repurchase rights lapse at the same rate as the options vest.
The following table summarizes the stock option activity for the period ended September 30, 2021:
Number of
Options
Outstanding		Weighted-
Average
Exercise Price
Per Share		Weighted-
Average
Remaining
Contractual
Life (years)		Aggregate
Intrinsic
Value
(in thousands)
Balances as of December 31, 202051,379,939 $0.56 7.2$46,516 
Retroactive application of recapitalization(40,314,281)2.05 —— 
Adjusted Balance as of December 31, 202011,065,658 2.61 7.246,516 
Options granted1,043,948 28.80 
Options exercised(2,842,564)1.72 
Options forfeited(101,141)14.03 
Balances as of September 30, 20219,165,901 $2.32 7.1$171,226 
Options vested and exercisable — September 30, 20216,133,879 $2.32 6.2$132,327 
The weighted-average grant date fair value of stock options granted to employees was $18.92 during the nine months ended September 30, 2021. There were 2,440,000 stock options granted during the nine months ended September 30, 2020. The intrinsic value of options exercised was $63.0 million and less than $0.1 million during the nine months ended September 30, 2021 and 2020, respectively. During the three months ended September 30, 2021, 1,440,026 stock options were exercised at a weighted average exercise price of $1.48 per share. During the nine months ended September 30, 2021, the Company issued 839,745 shares of common stock from the net settlement of 1,426,130 stock options and shares granted. The Company paid $12.6 million in withholding taxes in connection with the net share settlement of these awards.

Restricted Stock Units

RSUs represent a right to receive one share of the Company’s common stock that is both non-transferable and forfeitable unless and until certain conditions are satisfied. RSUs generally, either cliff vest on the third anniversary of the award grant date, or vest 1/4 per year over a four-year period, subject to continued employment through each anniversary. The fair value of restricted stock units is determined on the grant date and is amortized over the vesting period on a straight-line basis.

The following table summarizes the RSU activity for the period ended September 30, 2021:

Number of
RSUs
Outstanding		Weighted-
Average
Grant Date Fair Value
Per Share
Balances as of December 31, 2020—$— 
RSUs granted1,759,07736.21 
RSUs vested——
RSUs forfeited——
Balances as of September 30, 20211,759,077$36.21 

The fair value of all RSUs granted during the nine month period ended September 30, 2021 was $63.7 million. During the nine month period ended September 30, 2021, no RSUs vested.

Stock-Based Compensation
The following table summarizes stock-based compensation expense recorded in each component of operating expenses in the Company’s consolidated statements of operations and comprehensive loss (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2021202020212020
Sales and marketing$723$(24)$975$196
Research and development965331,384519
General and administrative4,5114865,624712
Total stock-based compensation expense$6,199$495$7,983$1,427
As of September 30, 2021, the Company had approximately $22.8 million of remaining unrecognized stock-based compensation expense for stock options, which is expected to be recognized over a weighted average period of 3.4 years. As of September 30, 2021, the Company had approximately $59.6 million of remaining unrecognized stock-based compensation expense for RSUs, which is expected to be recognized over a weighted average period of 5.1 years.