v3.22.2.2
Related-Party Transactions
9 Months Ended
Sep. 30, 2022
Related Party Transactions [Abstract]  
Related-Party Transactions Related-Party Transactions
Prior to its Direct Listing, the Company issued secured promissory notes to certain related party members of senior management, including its executive officers. The promissory notes are collateralized by the stock purchased in relation to the exercise of employee stock options, and as such have been treated as non-recourse notes in the condensed consolidated financial statements. The promissory notes are issued with a term of 8.5 years and an interest rate equal to the minimum applicable federal mid-term rate in the month the loan was issued. The secured promissory notes are recorded as a reduction to equity offsetting the amount in additional paid-in-capital related to the exercised options funded by the notes. In August 2021, prior to the Direct Listing, the executive officers repaid their promissory notes in full, however several promissory notes remain outstanding with other members of senior management. No new promissory notes were issued during the nine months ended September 30, 2022 and $13.8 million were issued in the nine months ended September 30, 2021.
During the three and nine months ended September 30, 2022, the outstanding loan balance increased by an immaterial amount due to interest. The loans had a balance of $3.1 million at both September 30, 2022 and December 31, 2021.