Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

v3.22.2.2
Stock-Based Compensation
 9 Months Ended
Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Stock Options
The following table summarizes the activity for all stock options under all of the Company’s equity incentive plans for the nine months ended September 30, 2022 (shares and aggregate intrinsic value in thousands):
Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value
Outstanding at December 31, 2021 6,257  $ 13.60  6.19 $ 140,326 
Granted 931  28.08 
Exercised (1,121) 8.66 
Canceled (526) 26.10 
Outstanding at September 30, 2022 5,541  $ 15.84  5.86 $ 78,880 
Options vested and exercisable at September 30, 2022 3,974  $ 10.56  4.70 $ 73,057 
Restricted Stock Units
The following table summarizes the activity for all restricted stock units (“RSUs”) under all of the Company’s equity incentive plans for the nine months ended September 30, 2022 (shares in thousands):
Number of Awards Weighted Average Grant Date Fair Value
Unvested balance at December 31, 2021 4,485  $ 42.73 
Granted 4,051  27.57 
Issued (2,532) 41.21 
Canceled / forfeited (1,308) 36.23 
Unvested balance at September 30, 2022 4,696  $ 32.26 
Warrants for Strategic Partners
The Company has issued warrants for up to 846,943 shares of its common stock to certain strategic partners (calculated using the respective quarter of grant's closing stock price). The exercise price of each warrant is $0.01 per share, and 330,329 warrants were exercised during the nine months ended September 30, 2022. There were no warrants exercised during the nine months ended September 30, 2021. The Company recognized stock-based compensation expense of $1.1 million and $3.0 million during the three months ended September 30, 2022 and 2021, respectively, and $3.2 million and $8.1 million during the nine months ended September 30, 2022 and 2021, respectively, under performance and time-based warrants.
Employee Stock Purchase Plan
Under the Company's 2015 Employee Stock Purchase Plan ("ESPP"), eligible employees are offered shares bi-annually through a 24-month offering period that encompasses four six-month purchase periods. Each purchase period begins on the first trading day on or after May 15 and November 15 of each year. Employees may purchase a limited number of shares of the Company’s common stock via regular payroll deductions at a discount of 15% of the lower of the fair market value of the Company’s common stock on the first trading date of each offering period or on the exercise date. Employees may deduct up to 15% of payroll, with a cap of $25,000 of fair market value of shares in any calendar year and 10,000 shares per employee per purchase period.
Stock-Based Compensation Expense
The Company recognized stock-based compensation expense, including ESPP expenses, in the consolidated statements of operations as follows (in thousands):
Three Months Ended September 30, Nine Months Ended September 30,
2022 2021 2022 2021
Cost of customer agreements and incentives $ 1,776  $ 3,136  $ 7,132  $ 7,360 
Cost of solar energy systems and product sales
 1,741  1,588  6,755  3,937 
Sales and marketing 10,418  23,856  48,042  74,189 
Research and development 464  703  2,160  2,182 
General and administration 8,431  9,979  24,613  73,086 
Total $ 22,830  $ 39,262  $ 88,702  $ 160,754 
During the three and nine months ended September 30, 2022, stock-based compensation expense capitalized to solar energy systems, net in the Company’s consolidated balance sheet was $2.7 million and $10.1 million, respectively.