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Stockholders' Equity
 3 Months Ended
Mar. 31, 2024
Stockholders' Equity Note [Abstract]  
Stockholders' Equity

8. Stockholders’ Equity

Undesignated Preferred Stock

The Company’s Amended and Restated Certificate of Incorporation authorizes the issuance of 100,000,000 shares of undesignated preferred stock, par value of $0.01 per share, with rights and preferences, including voting rights, designated from time to time by the board of directors. No shares of preferred stock were issued or outstanding as of March 31, 2024 and December 31, 2023.

Common Stock

In the three months ended March 31, 2024, no shares of Class B common stock were converted to Class A common stock. As of March 31, 2024, the par value of the Class A, Class B and Class C shares was $2,625, $275, and $56, respectively.

 

 

 

Shares
Authorized

 

 

Shares
Issued

 

 

Shares
Outstanding

 

Class A

 

 

1,000,000,000

 

 

 

263,158,793

 

 

 

263,158,793

 

Class B

 

 

100,000,000

 

 

 

27,390,397

 

 

 

27,390,397

 

Class C

 

 

200,000,000

 

 

 

5,555,555

 

 

 

5,555,555

 

 

 

 

1,300,000,000

 

 

 

296,104,745

 

 

 

296,104,745

 

 

As of March 31, 2024 and December 31, 2023, the Company had reserved 83,295,920 and 74,506,099 shares of common stock for the exercise of outstanding stock options, the vesting of restricted stock units, the vesting of performance-based market condition share awards, and the number of shares remaining available for future grant, respectively.

Stock Plans and Stock Options

The Company maintains the 2006 Employee, Director and Consultant Stock Plan as amended and restated (the “2006 Plan”) and 2020 Equity Incentive Plan (the “2020 Plan” together, the “Plans”) under which it has granted incentive stock options, non-qualified stock options, and restricted stock units to employees, officers, and directors of the Company. In connection with the adoption of the 2020 Plan, the then-remaining shares of common stock reserved for grant or issuance under the 2006 Plan became available for issuance under the 2020 Plan, and no further grants will be made under the 2006 Plan.

Options issued under the Plans are exercisable for periods not to exceed ten years, and vest and contain such other terms and conditions as specified in the applicable award document. Options to buy common stock are issued under the Plans, with exercise prices equal to the closing price of shares of the Company’s common stock on the New York Stock Exchange on the date of award.

Activity under the Plans is as follows:

 

 

 

Number of
Shares

 

 

Weighted
Average
Exercise Price

 

 

Weighted Average
Remaining
Contractual
Term (Years)

 

 

Aggregate
Intrinsic Value

 

Outstanding as of January 1, 2024

 

 

9,989,049

 

 

$

5.09

 

 

 

4.6

 

 

$

—

 

Granted

 

 

—

 

 

$

—

 

 

 

 

 

 

 

Forfeited

 

 

(170,819

)

 

$

5.67

 

 

 

 

 

 

 

Expired

 

 

—

 

 

$

—

 

 

 

 

 

 

 

Exercised

 

 

—

 

 

$

—

 

 

 

 

 

 

 

Outstanding as of March 31, 2024

 

 

9,818,230

 

 

$

5.08

 

 

 

4.4

 

 

$

—

 

Vested and expected to vest as of December 31, 2023

 

 

9,978,545

 

 

$

5.09

 

 

 

4.6

 

 

$

—

 

Vested and expected to vest as of March 31, 2024

 

 

9,810,553

 

 

$

5.08

 

 

 

4.4

 

 

$

—

 

Options exercisable as of December 31, 2023

 

 

9,906,925

 

 

$

5.08

 

 

 

4.6

 

 

$

—

 

Options exercisable as of March 31, 2024

 

 

9,807,262

 

 

$

5.08

 

 

 

4.4

 

 

$

—

 

 

No options were granted in the three months ended March 31, 2024 and 2023.

Restricted Stock Units

Activity for the restricted stock units is as follows:

 

 

 

Shares

 

 

Weighted Average
Grant Date
Fair Value

 

Unvested as of January 1, 2024

 

 

22,422,895

 

 

$

7.45

 

Granted

 

 

23,681,803

 

 

 

1.28

 

Vested

 

 

(6,542,751

)

 

 

2.59

 

Forfeited

 

 

(1,865,789

)

 

 

3.84

 

Unvested as of March 31, 2024

 

 

37,696,158

 

 

$

4.60

 

 

The total grant date fair value of RSU’s granted for the three months ended March 31, 2024 was $30,313. Restricted stock units vest over the service period of one to four years. The aggregate intrinsic value of restricted stock units vested for the three months ended March 31, 2024 and 2023 was $7,508 and $7,693, respectively.

Restricted Stock Units with a Market Condition

Activity for the restricted stock units with a market condition is as follows:

 

 

 

Shares

 

 

Weighted Average
Grant Date
Fair Value

 

Unvested as of January 1, 2024

 

 

26,716,306

 

 

$

2.29

 

Granted

 

 

—

 

 

 

—

 

Vested

 

 

—

 

 

 

—

 

Cancelled/Forfeited

 

 

(8,686,061

)

 

 

2.75

 

Unvested as of March 31, 2024

 

 

18,030,245

 

 

$

2.07

 

The total grant-date fair value of performance-based market condition share awards granted during the three months ended March 31, 2023 was $5,805. There were no performance-based market condition share awards granted during the three months ended March 31, 2024. In the three months ended March 31, 2024 the Company cancelled 8,446,479 restricted stock units with a market condition that were not expected to vest. The Company subsequently issued 11,909,306 restricted stock units to the individuals who had held the canceled awards. The cancelation and subsequent issuance was treated as a modification.

The weighted average estimated fair value of the performance-based market condition share awards granted during the three months ended March 31, 2023 was determined using a Monte-Carlo valuation simulation, with the following most significant weighted-average assumptions:

 

 

 

Three Months Ended March 31,

 

 

 

2024

 

2023

 

Risk-free rate

 

N/A

 

 

4.61

%

Term to end of performance period (yrs)

 

N/A

 

3 years

 

Valuation date stock price

 

N/A

 

$

2.76

 

Expected volatility

 

N/A

 

 

70

%

Expected dividend yield

 

N/A

 

 

0

%

 

2020 Employee Stock Purchase Plan

During the three months ended March 31, 2023, the Company issued 513,339 shares under the ESPP. During the three months ended March 31, 2024, the Company issued 1,073,497 shares under the ESPP. As of March 31, 2024, 7,831,816 shares remained available for issuance.

Stock-Based Compensation

Stock-based compensation expense was classified in the condensed consolidated statements of operations and comprehensive loss as follows:

 

 

 

Three Months Ended March 31,

 

 

 

2024

 

 

2023

 

Cost of revenues

 

$

397

 

 

$

398

 

Research and development

 

 

2,009

 

 

 

2,801

 

Selling and marketing

 

 

1,778

 

 

 

1,986

 

General and administrative

 

 

12,044

 

 

 

15,812

 

Total

 

$

16,228

 

 

$

20,997

 

 

As of March 31, 2024, the unrecognized stock-based compensation expense related to unvested common stock-based awards was $70,652, which is expected to be recognized over a weighted-average period of 2.4 years.