Stockholders' Equity

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Stockholders' Equity

8. Stockholders’ Equity

In November 2021, the Company established a plan whereby substantially all full-time employees excluding executive management are eligible to receive a series of cash bonuses over certain periods based on continued employment and the Company’s stock price reaching a pre-specified target. The maximum potential payout of the cash awards at the grant date was $15.1 million. The

Company has determined that the cash awards were classified as liabilities pursuant to ASC Topic 718, Compensation –Stock Compensation. The Company estimates the fair value of the awards at each reporting period using a Monte Carlo simulation, which is recognized as compensation cost over the derived service period. Total fair value of the awards at the grant date was $4.4 million. The maximum potential payout at September 30, 2022 after adjusting for forfeitures was $12.1 million. The fair value of the awards at September 30, 2022 was approximately $2.2 million. During the three months ended September 30, 2022, the Company recorded $0.3 million of compensation cost related to the awards. During the nine months ended September 30, 2022, the Company recorded a total of $0.4 million compensation cost related to the awards.