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Stockholders' Equity
 6 Months Ended
Jun. 30, 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 June 30, 2024 and December 31, 2023.

Common Stock

In the three and six months ended June 30, 2024, no shares of Class B common stock were converted to Class A common stock. As of June 30, 2024, the par value of the Class A, Class B and Class C shares was $134, $14, and $3, respectively.

 

 

 

Shares
Authorized

 

 

Shares
Issued

 

 

Shares
Outstanding

 

Class A

 

 

1,000,000,000

 

 

 

13,308,758

 

 

 

13,308,758

 

Class B

 

 

100,000,000

 

 

 

1,369,518

 

 

 

1,369,518

 

Class C

 

 

200,000,000

 

 

 

277,777

 

 

 

277,777

 

 

 

 

1,300,000,000

 

 

 

14,956,053

 

 

 

14,956,053

 

 

As of June 30, 2024 and December 31, 2023, the Company had reserved 4,014,243 and 3,725,304 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, restricted stock units and performance 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

 

 

499,442

 

 

$

101.82

 

 

 

4.6

 

 

$

—

 

Granted

 

 

—

 

 

$

—

 

 

 

 

 

 

 

Forfeited

 

 

(31,417

)

 

$

90.40

 

 

 

 

 

 

 

Expired

 

 

(2,200

)

 

$

36.0

 

 

 

 

 

 

 

Exercised

 

 

—

 

 

$

—

 

 

 

 

 

 

 

Outstanding as of June 30, 2024

 

 

465,825

 

 

$

102.90

 

 

 

4.2

 

 

$

—

 

Vested and expected to vest as of December 31, 2023

 

 

498,921

 

 

$

101.80

 

 

 

4.6

 

 

$

—

 

Vested and expected to vest as of June 30, 2024

 

 

465,457

 

 

$

102.89

 

 

 

4.2

 

 

$

—

 

Options exercisable as of December 31, 2023

 

 

495,428

 

 

$

101.59

 

 

 

4.6

 

 

$

—

 

Options exercisable as of June 30, 2024

 

 

465,603

 

 

$

102.90

 

 

 

4.2

 

 

$

—

 

 

No options were granted in the six months ended June 30, 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

 

 

1,119,107

 

 

$

74.39

 

Granted

 

 

1,500,867

 

 

 

22.06

 

Vested

 

 

(478,477

)

 

 

56.55

 

Forfeited

 

 

(250,276

)

 

 

61.87

 

Unvested as of June 30, 2024

 

 

1,891,221

 

 

$

39.03

 

 

The total grant date fair value of RSU’s granted for the six months ended June 30, 2024 was $33,115. Restricted stock units vest over the service period of one to four years. The aggregate intrinsic value of restricted stock units vested for the six months ended June 30, 2024 and 2023 was $8,947 and $13,134, 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

 

 

1,335,803

 

 

$

45.82

 

Granted

 

 

—

 

 

 

—

 

Vested

 

 

—

 

 

 

—

 

Cancelled/Forfeited

 

 

(539,345

)

 

 

54.97

 

Unvested as of June 30, 2024

 

 

796,458

 

 

$

39.62

 

The total grant-date fair value of performance-based market condition share awards granted during the six months ended June 30, 2023 was $5,805. There were no performance-based market condition share awards granted during the six months ended June 30, 2024. In the six months ended June 30, 2024, the Company cancelled 422,319 restricted stock units with a market condition

that were not expected to vest. The Company subsequently issued 595,462 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 six months ended June 30, 2023 was determined using a Monte-Carlo valuation simulation, with the following most significant weighted-average assumptions:

 

 

 

Six Months Ended June 30,

 

 

 

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 six months ended June 30, 2023, the Company issued 25,667 shares under the ESPP. During the six months ended June 30, 2024, the Company issued 53,675 shares under the ESPP. As of June 30, 2024, 391,591 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 June 30,

 

 

Six Months Ended June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Cost of revenues

 

$

388

 

 

$

435

 

 

$

785

 

 

$

833

 

Research and development

 

 

1,615

 

 

 

2,872

 

 

 

3,624

 

 

 

5,673

 

Selling and marketing

 

 

1,380

 

 

 

2,337

 

 

 

3,158

 

 

 

4,323

 

General and administrative

 

 

6,455

 

 

 

15,869

 

 

 

18,499

 

 

 

31,681

 

Total

 

$

9,838

 

 

$

21,513

 

 

$

26,066

 

 

$

42,510

 

 

As of June 30, 2024, the unrecognized stock-based compensation expense related to unvested common stock-based awards was $57,953, which is expected to be recognized over a weighted-average period of 2.3 years.