form of: (i) incentive stock options; (ii) non-qualified stock options; (iii) stock appreciation rights; (iv) restricted stock; (v) restricted stock units (“RSUs”); (vi) dividend equivalents; and (vii) other stock and cash based awards.

In May 2022, the Company began granting RSUs to certain officers and employees, and to the Board of Directors. The RSUs are contingent upon continued service and vest over time in annual or bi-annual installments over the vesting period, which is typically 1 to 3 years. The fair value of the RSUs is based on the Company’s closing stock price on the grant date. The fair value of the RSUs is amortized straight-line over the vesting period.

In connection with the closing of the Merger, the Company adopted an Employee Stock Purchase Plan (the “ESPP”). The ESPP is a shareholder-approved plan under which substantially all employees may voluntarily enroll to purchase the Company’s common stock through payroll deductions at a price equal to 85% of the lower of the fair market value of the stock as of the beginning or end of the six-month offering periods. Employees may not purchase more than 5,000 shares annually under the plan.

The first six-month ESPP offering period began on September 1, 2022. The fair value of the shares under the ESPP is calculated on the first day of the offering period (the grant date) using the Black-Scholes valuation model and is amortized straight-line over the six-month offering period. For additional information on the ESPP, refer to the section labeled “Equity Incentive Plans” in the Company’s prospectus, dated January 25, 2022, filed with the Securities and Exchange Commission (“SEC”) in accordance with Rule 424(b)(3) of the Securities Act on February 10, 2022.

The following table summarizes stock option awards outstanding as of September 30, 2022, as well as activity during the nine months then ended:


(In thousands, except per share amounts)	Number of Options	Weighted Average Exercise Price
Outstanding at December 31, 2021	25,425	$	5.30
Granted	4,323	10.55
Exercised	(1,583)	0.57
Forfeited	(2,162)	8.02
Outstanding at September 30, 2022	26,003	$	6.26

The following table summarizes RSU awards outstanding as of September 30, 2022, as well as activity during the nine months then ended:


(In thousands, except per share amounts)	Number of RSUs	Weighted Average Grant Date Fair Value		Aggregate Fair Value
Outstanding at December 31, 2021	—	$	—
Granted	9,072	$	2.19
Vested	—	$	—
Forfeited	(100)	$	3.29
Outstanding at September 30, 2022	8,972	$	2.18	$	19,559

As of September 30, 2022, the total unrecognized compensation expense related to outstanding stock options and RSU awards was $51.3 million and $17.4 million, respectively, which the Company expects to recognize over a weighted-average period of 2.66 and 2.76 years, respectively.

As of September 30, 2022, the total unrecognized compensation expense related to the ESPP was $0.1 million, which the Company expects to recognize over a period of 0.41 years.

The total amount of stock-based compensation expense recognized in the unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2022 and 2021 was as follows:


Statement of operations classification	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2022		2021		2022		2021
Cost of revenue (stock options, RSUs and ESPP)	$	505	$	129	$	1,481	$	346
Selling, general and administrative (stock options, RSUs and ESPP)	3,710		869		12,669		1,567
Selling, general and administrative (Earn-Out Shares)	1,524		—		5,275		—
Total stock-based compensation expense	$	5,739	$	998	$	19,425	$	1,913

Stock-based compensation expense recognized in the statements of operations may differ from the impact of stock-based compensation to additional paid in capital due to stock-based compensation capitalized as part of software development activities.