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EQUITY
9 Months Ended
Sep. 30, 2022
Equity [Abstract]  
EQUITY EQUITY
The Company’s second amended and restated certificate of incorporation designates and authorizes the Company to issue 1.1 billion shares, consisting of (i) 1.0 billion shares of common stock, par value $0.0001 per share; and (ii) 100.0 million shares of preferred stock, par value $0.0001 per share.
Common Stock Reserved for Future Issuance
As of September 30, 2022 and December 31, 2021, the Company’s reserved shares for future issuance included the following:
September 30, 2022
December 31, 2021(1)
Stock options issued and outstanding12,960,84315,009,656
Restricted stock units issued and outstanding12,981,9266,498,869
Public warrants outstanding9,999,9679,999,967
Private placement warrants outstanding5,333,3345,333,334
2021 Incentive Award Plan available shares16,390,21516,731,819
Total 57,666,28553,573,645
(1) As adjusted for the Exchange Ratio.
Warrants
As part of the Closing of the Business Combination, 10.0 million public warrants sold during the TSIA IPO converted into 10.0 million public warrants to purchase up to 10.0 million shares of common stock of the Post-Combination Company, which are exercisable at $11.50 per share. The Company accounts for warrants as required under ASC 815 and has concluded that equity classification would be met for the public warrants as the Company has a single class of equity, and thus all holders vote 100% on all matters submitted to the Company’s stockholders and receive the same form of consideration in the event of a change of control (thus qualifying for the exception to the net cash settlement model), and the other conditions of equity classification would be met.
Fair Valuation Methodology - Private Placement Warrants
The Private Placement Warrants, which Legacy Latch assumed as part of the Closing of the Business Combination, are recorded as warrant liabilities. See Note 5. Fair Value Measurements.