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STOCK-BASED COMPENSATION PLANS
 6 Months Ended
Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION PLANS
13. STOCK-BASED COMPENSATION PLANS
The Company’s 2014 Stock Option Plan (the “2014 Plan”) provides for the grant of restricted stock awards and incentive and non-qualified options and to purchase Class A common stock to officers, employees, directors, and consultants. Options granted to employees and non-employees generally vest ratably over four to five years, with a maximum contractual term of ten years. Outstanding awards under the 2014 Plan continue to be subject to the terms and conditions of the 2014 Plan. The number of shares authorized for issuance under the 2014 Plan was reduced to the number of shares subject to awards outstanding under the 2014 Plan immediately after the IAC Merger. As a result, no further awards will be made under the 2014 Plan. Shares reserved for awards that are subsequently expired or forfeited will no longer be returned to the pool of shares authorized for issuance under the 2014 Plan.
At the Company's special meeting of stockholders held on October 13, 2020, the stockholders approved the 2020 Omnibus Equity Compensation Plan (the "2020 Plan"). The 2020 Plan provides for the grant of incentive and non-qualified stock option, restricted stock units ("RSUs"), restricted share awards, stock appreciation awards, and cash-based awards to employees, directors, and consultants of the Company. Awards under the 2020 Plan expire no more than ten years from the date of grant. The 2020 Plan became effective immediately upon the closing of the IAC Merger.
In December 2022, the Company assumed various stock plans in connection with the CarLotz Merger (the "CarLotz Plans"). Outstanding awards under the CarLotz Plans continue to be subject to the terms and conditions of the CarLotz Plans. The number of shares authorized for issuance under the CarLotz Plans was reduced to the number of shares subject to awards outstanding under the CarLotz Plans immediately after the CarLotz Merger.
On June 30, 2022, the Company issued 1,900,000 RSUs pursuant to an inducement award under NASDAQ Listing Rule 5365(c)(4).
Activity related to employee and non-employee stock options for all plans is set forth below:
Number of
Shares		Weighted
Average
Exercise Price		Weighted Average
Remaining
Contractual Life
(Years)		Aggregate Intrinsic Value (000’s)
As of December 31, 2022
519,323 $26.02 4.95$1 
Granted— — 
Exercised— — 
Forfeited(6,428)31.98 
Cancelled (expired)(123,322)68.44 
As of June 30, 2023
389,573$12.49 5.60$1 
Exercisable as of June 30, 2023
387,570$12.42 5.59$1 
Activity related to employee and non-employee RSU awards is set forth below:
Number of
Shares		Weighted
Average
Grant Date Fair Value		Weighted Average
Remaining
Contractual Life
(Years)		Aggregate Intrinsic Value (000’s)
Unvested as of December 31, 2022
486,054 $29.30 1.01$724 
Granted2,096,082 2.02 
Vested(116,955)26.37 
Forfeited(133,523)15.79 
Unvested as of June 30, 2023
2,331,658$5.68 1.58$5,060 
Vested and unreleased3,164
Outstanding as of June 30, 2023
2,334,822
Unvested RSUs as of June 30, 2023 include 190,000 Performance RSUs that vest if the Company achieves certain profitability metrics for the six months ended December 31, 2023. Unvested RSUs also include 760,000 Performance RSUs that vest if the closing price of the Company's common stock exceeds thresholds ranging from $2.00 to $9.25 during the 30 months following the grantee's date of hire. The grant date fair values of awards with market-based vesting conditions were determined using a Monte Carlo valuation model, which requires significant estimates including the expected volatility of our common stock.
Stock-Based Compensation Expense
For the three months ended June 30, 2023 and 2022, the Company recorded stock-based compensation expense to selling, general and administrative expenses on the condensed consolidated statements of operations and comprehensive loss of $1.3 million and $4.9 million, respectively. For the six months ended June 30, 2023 and 2022, the Company recorded stock-based compensation expense of $2.6 million and $9.1 million, respectively.
The Company capitalized stock-based compensation costs for the three months ended June 30, 2023 and 2022 of $0.1 million and $0.3 million, respectively, to capitalized website and internal use software costs, net. In addition, the Company capitalized stock-based compensation costs for the six months ended June 30, 2023 and 2022 of $0.3 million and $0.7 million, respectively, to capitalized website and internal use software costs, net.
As of June 30, 2023, there was $10.7 million of unrecognized stock-based compensation expense that is expected to be recognized over a weighted-average period of 2.36 years.