Quarterly report pursuant to Section 13 or 15(d)

Stock-based Compensation

v3.21.2
Stock-based Compensation
 9 Months Ended
Oct. 03, 2021
Share-based Payment Arrangement [Abstract]  
Stock-based Compensation

Note 11. Stock-based Compensation

The Company issues stock-based compensation to employees and non-employees in the form of stock options and restricted stock units (“RSUs”). The Company uses Black-Scholes option pricing model to value its stock options granted and use its common stock price, which is the last reported sales price on the grant date to value its RSUs. The Company records forfeitures as they occur. The following table summarizes the total stock-based compensation expense, by operating expense category, recognized in the condensed consolidated statements of operations for the periods presented below (in thousands).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended October 3, 2021

 

 

Three Months Ended
September 30, 2020

 

 

For the 39-Week Period
Ended October 3,

 

 

Nine Months Ended September 30, 2020

 

Cost of revenue

 

$

—

 

 

$

21

 

 

$

274

 

 

$

51

 

Research and development

 

 

1,290

 

 

 

52

 

 

 

4,197

 

 

 

123

 

Selling, general and administrative

 

 

1,752

 

 

 

8

 

 

 

2,246

 

 

 

23

 

Total stock-based compensation expense

 

$

3,042

 

 

$

81

 

 

$

6,717

 

 

$

197

 

As of October 3, 2021, and December 31, 2020, the Company capitalized an immaterial amount of stock-based compensation as deferred contract costs and property and equipment, net in the condensed consolidated balance sheet. There was no recognized tax benefit related to stock-based compensation expense for the quarter ended and 39-week period ended October 3, 2021 and three and nine months ended September 30, 2020.

As of October 3, 2021, there was approximately $41.3 million of total unrecognized stock-based compensation expense related to unvested equity awards, which are expected to be recognized over a weighted-average period of 3.7 years.

 

Stock Option Activity

The following table summarized stock option activities for the 39-week period ended October 3, 2021 (in thousands, except share and per share amount).

 

 

 

Number of
Options
Outstanding

 

 

Weighted
Average
Exercise
Price

 

 

Weighted
Average
Remaining
Contractual
Life (Years)

 

 

Aggregate
Intrinsic
Value(1)

 

Balances as of January 1, 2021

 

 

1,428,980

 

 

$

0.11

 

 

 

 

 

 

 

Granted

 

 

6,737,344

 

 

 

7.69

 

 

 

 

 

 

 

Exercised

 

 

(2,121,815

)

 

 

0.08

 

 

 

 

 

$

183

 

Forfeited

 

 

(191,750

)

 

 

5.47

 

 

 

 

 

 

 

Balances as of October 3, 2021

 

 

5,852,759

 

 

$

8.67

 

 

 

9.4

 

 

$

59,419

 

Vested and exercisable at October 3, 2021

 

 

610,069

 

 

$

4.14

 

 

 

7.7

 

 

$

8,955

 

Unvested and exercisable at October 3, 2021

 

 

4,871,693

 

 

$

8.72

 

 

 

9.5

 

 

$

49,218

 

 

(1)

The intrinsic value of options exercised is based upon the value of the Company’s stock at exercise.

Unvested early exercised stock options which are subject to repurchase by the Company are not considered participating securities as those shares do not have non-forfeitable rights to dividends or dividend equivalents. Unvested early exercised stock options are not considered outstanding for purposes of the weighted average outstanding share calculation until they vest.

As of October 3, 2021, 5,823,232 shares remained subject to the Company’s right of repurchase as a result of early exercised stock options. The remaining liability related to early exercised shares as of October 3, 2021 was $0.4 million and was recorded in other current and non-current liabilities in the condensed consolidated balance sheets.

 

Restricted Stock Unit Activity

During the quarter ended October 3, 2021, the Company awarded 117,611 shares of restricted stock units under the 2021 equity incentive plan.