Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

Stock-Based Compensation

3 Months Ended

Mar. 31, 2023

The Company recorded approximately $4.8 million and $12.1 million for stock-based compensation in general and administrative expenses on the Consolidated Statements of Operations for the three months ended March 31, 2023 and 2022, respectively.

Stock Options

A summary of the stock option activity under the Company’s plans for the three months ended March 31, 2023 is as follows:


	Number of Shares	Weighted Average Exercise Price
Outstanding at December 31, 2022	4,214,617	$	16.48
Granted	338,792	$	10.62
Exercised	(75,028)	$	10.01
Forfeited	(347,719)	$	20.56
Outstanding at March 31, 2023	4,130,662	$	15.77
Exercisable at March 31, 2023	754,142	$	29.45

The fair value of each stock option award granted during the three months ended March 31, 2023 was estimated as of the grant date using a Black-Scholes model with the following assumptions:


			Three Months Ended March 31, 2023
Expected term (in years)			4.0 - 5.5
Risk-free interest rate (%)			3.4% - 4.4%
Expected volatility (%)			54.6% - 65.7%
Dividend yield (%)			—
Weighted average grant date fair value per share			$5.66

As of March 31, 2023, there was approximately $12.2 million of unrecognized stock-based compensation expense related to stock options that will be recognized over a weighted-average period of approximately 2.1 years.

Restricted Stock Awards

A summary of the restricted stock activity under the Company’s plans for the three months ended March 31, 2023 is as follows:


	Number of Restricted Shares	Weighted Average Grant Date Fair Value
Nonvested at December 31, 2022	1,994,861	$	12.71
Granted	213,710	$	10.15
Vested	(33,607)	$	23.42
Forfeited	(89,836)	$	12.16
Nonvested at March 31, 2023	2,085,128	$	12.28

As of March 31, 2023, there was approximately $15.5 million of unrecognized stock-based compensation expense related to restricted stock that will be recognized over a weighted-average period of approximately 2.3 years.

Modification of Stock Option and Restricted Stock Awards

In the first quarter of 2022, upon the Chief Executive Officer’s departure from the Company and in accordance with the terms of the Chief Executive Officer’s separation agreement, 237,960 previously granted time-based vesting stock option awards and 142,302 previously granted time-vesting restricted stock awards accelerated vesting. The Company accounted for the effects of the accelerated vesting of these stock awards as a modification, and recognized $5.9 million of incremental stock-based compensation which consisted of $2.3 million and $3.6 million for the acceleration of stock option awards and restricted stock awards, respectively, within general and administrative expenses on the Consolidated Statements of Operations for the three months ended March 31, 2022. There were no such amounts for the three months ended March 31, 2023.