Equity Incentive Plans — Under the Company’s 2018 Equity Incentive Plan (the “2018 Plan”), approved at the annual meeting by the BioScrip stockholders on May 3, 2018, the Company may issue, among other things, incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock units, stock grants, and performance units to key employees and directors. The 2018 plan is administered by the Company’s Compensation Committee, a standing committee of the Board of Directors. A total of 4,101,735 shares of common stock were initially authorized for issuance under the 2018 Plan. In May 2021, an additional 4,999,999 shares were authorized for issuance under the 2018 Plan, resulting in a total 9,101,734 shares of common stock authorized for issuance.

Stock Options — Options granted under the 2018 Plan typically vest over a three- or four-year period and, in certain instances, may fully vest upon a change in control of the Company. The options also typically have an exercise price that may not be less than 100% of its fair market value on the date of grant and are exercisable seven to ten years after the date of grant, subject to earlier termination in certain circumstances.

Compensation expense from stock options is recognized on a straight-line basis over the requisite service period. During the years ended December 31, 2021 and 2020, the Company recognized compensation expense related to stock options of $1.9 million and $0.4 million. The Company did not recognize any compensation expense related to stock options prior to the Merger.

The weighted average grant-date fair value of options granted during the years ended December 31, 2021 and 2020 was $17.79 and $5.94, respectively. The Company did not grant any options during the year ended December 31, 2019. The fair value of stock options granted was estimated on the date of grant using a Black-Scholes pricing model. The assumptions used to compute the fair value of options for the year ended December 31, 2021 and 2020 are as follows:


	Years Ended December 31,
	2021		2020
Expected volatility	51.92	%	45.7	%
Risk-free interest rate	1.4	%	0.53	%
Expected life of options	6.5 years		6.3 years
Dividend rate	—		—


	Options	Weighted Average Exercise Price		Aggregate Intrinsic Value (thousands)		Weighted Average Remaining Contractual Life
Balance at December 31, 2020	412,831	$	14.77	$	1,320
Granted	853,089	$	22.14	$	5,335
Exercised	(42,405)	$	10.65	$	461
Forfeited and expired	(53,374)	$	22.13	$	478
Balance at December 31, 2021	1,170,141	$	19.96	$	10,154	8.55 years
Exercisable at December 31, 2021	150,890	$	15.84	$	2,131	3.63 years

During the year ended December 31, 2021, shares were surrendered to satisfy tax withholding obligations on the exercise of stock options with a cost basis of $0.1 million. During the year ended December 31, 2020, shares were surrendered to satisfy tax withholding obligations on the exercise of stock options with a cost basis of $2.7 million, which are all held as treasury stock as of December 31, 2021. During the year ended December 31, 2020, $0.4 million of cash was received from stock option exercises under share-based payment arrangements. No cash was received from stock option exercises under share-based payment arrangements for the year ended December 31, 2019.

The maximum term of stock options under these plans is ten years. Options outstanding as of December 31, 2021 expire on various dates ranging from March 2023 through October 2031. The following table outlines the outstanding and exercisable stock options as of December 31, 2021:


	Options Outstanding				Options Exercisable
Range of Option Exercise Price	Outstanding Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Options Exercisable	Weighted Average Exercise Price
$0.00 - $8.24	9,901	$	6.52	5.1 years	9,901	$	6.52
$8.24 - $16.52	292,189	$	12.32	7.0 years	99,739	$	10.30
$16.52 - $24.76	521,461	$	19.90	9.0 years	21,375	$	23.56
$24.76 - $33.00	336,715	$	26.20	9.6 years	10,000	$	30.20

$41.28 - $49.52	6,250	$	44.16	1.2 years	6,250	$	44.16
$49.52 - $57.76	2,375	$	56.24	1.3 years	2,375	$	56.24

$66.00 - $74.28	1,250	$	66.52	1.6 years	1,250	$	66.52
All options	1,170,141				150,890

As of December 31, 2021, there was $13.9 million of unrecognized compensation expense related to unvested option grants that is expected to be recognized over a weighted-average period of 2.3 years.

Restricted Stock — Restricted stock grants subject solely to an employee’s continued service with the Company generally will become fully vested within one to four years from the grant date and, in certain instances, may fully vest upon a change in control of the Company. Restricted stock grants subject solely to a Director’s continued service with the Company generally will become fully vested within one year from the date of grant.

Compensation expense from restricted stock is recognized on a straight-line basis over the requisite service period. During the years ended December 31, 2021 and 2020, the Company recognized compensation expense related to restricted stock awards of $4.9 million and $2.3 million, respectively. The Company did not recognize any compensation expense related to restricted stock awards prior to the Merger.


	Restricted Stock	Weighted Average Grant Date Fair Value
Balance at December 31, 2020	549,650	$	13.26
Granted	875,554	$	19.95
Vested and issued	(91,858)	$	13.01
Forfeited and expired	(67,120)	$	15.62
Balance at December 31, 2021	1,266,226	$	17.73

During the year ended December 31, 2021, shares were surrendered to satisfy tax withholding obligations on the vesting of restricted stock awards with a cost basis of $0.0 million. During the year ended December 31, 2020, shares were surrendered to satisfy tax withholding obligations on the vesting of restricted stock awards with a cost basis of $0.3 million.

As of December 31, 2021, there was $31.2 million in unrecognized compensation expense related to unvested restricted stock awards that is expected to be recognized over a weighted average period of 2.1 years. The total fair value of restricted stock awards vested during the years ended December 31, 2021, 2020 and 2019 was $1.2 million, $1.5 million and $1.9 million, respectively.