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Stock-based compensation
 9 Months Ended
Sep. 30, 2021
Share-based Payment Arrangement [Abstract]  
Stock-based compensation Stock-based compensation
As of September 30, 2021, we have two equity incentive plans, our 2015 Stock Plan (the “2015 Plan”) and our 2021 Incentive Award Plan (the “2021 Plan”). As of March 11, 2021, we no longer grant equity awards pursuant to our 2015 Plan, but it continues to govern the terms of outstanding stock options that were granted prior to that date.
On October 12, 2020, OTI issued $1.1 million partial recourse promissory notes to certain executives and employees. The promissory notes carried 0.38% annual cash interest and were due on earliest of 9th anniversary of the date of issuance of the notes, or termination of employment of the executive/employee, or filing by OTI of a registration statement under the Securities Act of 1933, or promissory notes being prohibited under Section 13(k) of the Securities Exchange Act of 1934 or closing of change a in control of OTI. At issuance, the promissory notes were used to settle certain executives’ and employees’ obligations for 2,883,672 vested and 4,603,833 unvested ISOs that were exercised and no cash was exchanged. In March 2021, in connection with the close of the Merger, the Company forgave half of the respective obligations under the promissory notes for certain executives and required such noteholders to repay the remaining balance of $0.3 million under each of their respective notes. Additional compensation expense of $0.3 million was recognized in general and administrative expenses in the three months ended March 31, 2021 and the nine months ended September 30, 2021 for the value of the loans forgiven. Obligations under the promissory notes for non-executive noteholders of $0.5 million is outstanding as of September 30, 2021.

2021 Incentive Award Plan
On March 11, 2021, the Board of Directors approved the 2021 Plan. The 2021 Plan provides for the grant of stock options, stock appreciation rights, restricted stock units, performance stock unit awards and other forms of equity compensation (collectively, “equity awards”). In addition, the 2021 Plan provides for the grant of performance bonus awards. All awards within the 2021 Plan may be granted to employees, including officers, as well as directors and consultants, within the limit defined in the 2021 Plan. 18,558,576 shares of the Company’s common stock were initially reserved for issuance under the 2021 Plan. The 2021 Plan includes an evergreen provision that provides for an annual increase in the number of shares of common stock available for issuance thereunder beginning on January 1, 2022 and ending on January 1, 2031, equal to 5% of the shares of Company common stock outstanding on the last day of the immediately preceding fiscal year and such smaller number of shares as determined by the Board of Directors or a committee thereof. As of September 30, 2021, the Company had 13,680,487 shares of common stock available pursuant to new awards under the 2021 Plan.
Options and stock appreciation rights under the 2021 Plan will be exercisable at such times and as specified in the Award Agreement (as defined in the 2021 Plan) provided that the term of an option or stock appreciation will not exceed ten years. Options granted under the 2021 Plan may be Incentive Stock Options (ISOs) or Non-statutory Stock Options, as determined by the Administrator at the time of grant of an option and subject to the applicable provisions of Section 422 of the Internal Revenue Code and the regulations promulgated thereunder. The exercise price of an option will be no less than 100% of the fair market value of the shares of common stock on the date of grant. The exercise price of an ISO granted to a 10% shareholder will be no less than 110% of the fair market value of the shares on the date of grant and the term of the ISO will not exceed five years. The Company granted an option to purchase 1,614,492 shares of Company common stock to a senior advisor serving on the Company’s board of directors as chair with 20% of the total number of such option shares vesting on each of the first five anniversaries from the senior advisor’s employment start date, subject to his continued employment with the Company and provided that option grant will only be exercisable in the event that the closing trading price per share of the Company stock
equals or exceeds 130% of the exercise price per share of the option for 30 consecutive trading days. The senior advisor has resigned in June 2021 and the option to purchase 1,614,492 shares of Company common stock was forfeited.
Restricted stock and restricted stock units granted to employees generally vest as to 25% of the shares on the first anniversary service date of the grant, and quarterly thereafter so as to be 100% vested on the fourth anniversary of the vesting commencement date. All participants holding shares of restricted stock will be entitled to all the rights of a stockholder with respect to such shares and have voting power and other rights with respect to such shares, provided, however, that such shares are held in escrow and subject to forfeiture until the shares vested. The Company granted 807,246 restricted stock units to a senior advisor who serves as chair of the board of directors with vesting of 20% of the total number of restricted stock units on each of the first five anniversaries from the employment start date, subject to continued employment with the Company. The senior advisor has resigned in June 2021 and all restricted stock unit awards granted were forfeited.
In March 2021, the Company also granted 152,628 restricted stock units to several members of the board of directors subject to standard terms of these awards.
Vesting schedules for performance stock unit awards and other equity awards vary and are linked to one or more of performance or other specific criteria, including service to the Company, determined to be appropriate by the Board, in each case on a specified date or dates or over any period or periods determined by the Board. The performance condition awards are automatically forfeited in their entirety, without any cost to or action by the Company, if there has been no achievement of the performance condition. The Company granted 807,246 performance stock units to a senior advisor who serves as chair of the board of directors with vesting earned over four years based on achieving increases in the Company’s stock price from the date of grant ranging from 150%, to earn 25% of the performance stock units, to 300% to earn the entire award of performance stock units. Each performance stock unit constitutes the right to receive one share of Company common stock upon vesting. As noted above, the senior advisor has resigned in June 2021 and all performance stock unit awards granted were forfeited.
Performance bonus awards are denominated in cash, stock or a combination thereof, and shall be payable upon the attainment of performance goals that are established by the Board and relate to one or more of performance or other specific criteria, including service to the Company, in each case on a specified date or dates or over any period or periods determined by the Board.

Stock option activity for the nine months ended September 30, 2021 is as follows:
Number of
Shares
Underlying
Outstanding
Options		Weighted-
Average Exercise
Price per Share		Weighted-
Average
Remaining
Contractual
Term (in years)		Aggregate
Intrinsic
Value
Outstanding—December 31, 202025,732,503 $0.39 9.60$245,746 
Options granted645,796 10.26 
Options exercised(913,279)0.14 
Options cancelled(505,213)0.14 
Outstanding—September 30, 202124,959,807 $0.67 8.7$167,460 
Vested and expected to vest—September 30, 202124,959,807 $0.67 8.7$167,460 
Exercisable—September 30, 20218,844,727 $0.31 8.1$61,987 

The following table summarizes the weighted-average assumptions used in estimating the fair value of options granted in the nine months ended September 30, 2021, using the Black-Scholes option-pricing model:

Nine Months Ended
September 30, 2021
Expected term (years)6.00
Expected volatility63.19 %
Risk-free interest rate1.03 %
Expected dividend rate— %
The following table summarizes information about stock options outstanding and exercisable at September 30, 2021.
Options OutstandingOptions Exercisable
Exercise
Price		Options
Outstanding		Weighted
Average
Remaining
Contractual
Life (Years)		Weighted
Average
Exercise
Price		Options
Exercisable		Weighted
Average
Remaining
Contractual
Life (Years)		Weighted
Average
Exercise
Price
$0.18 6,350,481 8.3$0.18 3,889,338 7.8$0.18 
$0.21 10,394,961 8.8$0.21 3,186,660 8.2$0.21 
$0.37 35,159 0.4$0.37 35,159 0.4$0.37 
$1.42 7,524,116 9$1.42 1,724,276 9$1.42 
$5.57 7,976 0.2$5.57 7,976 0.2$5.57 
$8.25 1,318 0.2$8.25 1,318 0.2$8.25 
$10.26 645,796 9.5$10.26 — $— 
24,959,807 8,844,727 
The weighted average grant date fair value of options granted during the nine months ended September 30, 2021 was $5.9.
As of September 30, 2021, there was approximately $27.5 million of unamortized stock-based compensation expense related to unvested stock options that is expected to be recognized over a weighted average period of 1.7 years.

Restricted Stock Awards (“RSA”)
A summary of RSA activity under the 2015 Plan is as follows:
Number of
Shares
Weighted Average
Grant Date Fair
Value (per share)
Unvested – December 31, 202040,754 $0.67 
Granted during the period— — 
Canceled during the period— — 
Vested during the period(17,466)0.67 
Unvested — September 30, 2021
23,288 $0.67 
The weighted-average estimated fair value of RSAs granted in the nine months ended September 30, 2021 was Nil per share. The total fair value of RSAs vested during the nine months ended September 30, 2021 was less than $0.1 million.
Restricted Stock Units (“RSU”)
A summary of RSU activity is as follows:

Number of
Shares
Weighted Average
Grant Date Fair
Value (per share)
Unvested – December 31, 2020— $— 
Granted during the period4,332,224 9.50 
Canceled during the period(27,636)8.86 
Vested during the period(463,043)10.46 
Unvested — September 30, 2021
3,841,545 $9.21 

Stock compensation expense is recognized on a straight-line basis over the vesting period of each RSU. As of September 30, 2020, total compensation expense related to unvested RSUs granted to employees, but not yet recognized, was $34.2 million, with a weighted-average remaining vesting period of 3.2 years.

The Company recognized stock-based compensation for all stock options in the condensed consolidated statements of operations and comprehensive loss as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Cost of revenue$206 $505 $457 $606 
Research and development2,063 4,889 4,305 5,177 
Sales and marketing1,717 319 2,702 408 
General and administrative3,161 1,543 11,093 1,700 
Total stock-based compensation$7,147 $7,256 $18,557 $7,891