Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Share-based Payment Arrangement, Expensed and Capitalized, Amount

Share-based compensation expense recorded for each type of award is as follows:

	Year Ended December 31,
	2021		2020		2019
	(in thousands)
Time-Based Restricted Stock Units	$	1,934	$	148	$	—
Performance-Based Restricted Stock Units	1,122		—		—
Stock Options	759		5		—
Class B Common Units	—		2,675		1,984
Total share-based compensation expense	$	3,815	$	2,828	$	1,984

During the years ended December 31, 2021, 2020 and 2019, share-based compensation expense was allocated to cost of services, general and administrative, selling and marketing, and research and development, generally based on the functional responsibilities of the awarded unitholders in the accompanying consolidated statements of operations and comprehensive income (loss) as follows:

	Year Ended December 31,
	2021		2020		2019
	(in thousands)
General and administrative	$	3,102	$	2,578	$	1,798
Selling and marketing	366		81		62
Research and development	217		46		24
Cost of services	130		123		100
Total	$	3,815	$	2,828	$	1,984

The following table reflects the future stock-based compensation expense to be recorded for the share-based compensation awards that were outstanding at December 31, 2021 was as follows:

	Unrecognized Expense		Weighted Average Amortization Period
	(in thousands)
Time-Based Restricted Stock Units	$	6,953	3.09
Stock Options	2,252		3.00
Performance-Based Restricted Stock Units	2,220		2.00
Total unrecognized share-based compensation expense	$	11,425	2.86

Share-based Payment Arrangement, Activity

The following table summarizes the RSU activity for the year end December 31, 2021:

	Time-Based Restricted Stock Units
	Number of Awards	Weighted Average Fair Value at Grant Date
Unvested as of December 31, 2020	109,920	$	28.20
Granted	153,594	38.72
Vested	(31,889)	28.20
Unvested as of December 31, 2021	231,625	$	35.17

The following table summarizes the PSU activity for the year ended December 31, 2021:

	Performance-Based Restricted Stock Units
	Number of Awards	Weighted Average Fair Value at Grant Date
Unvested as of December 31, 2020	—	$	—
Granted	99,289	33.44
Unvested as of December 31, 2021	99,289	$	33.44

Share-based Payment Arrangement, Option, Activity

The following table summarizes the stock option activity for the year end December 31, 2021:

	Stock Options
	Number of Awards	Weighted Average Exercise Price		Weighted Average Contractual Term (Years)
Outstanding as of December 31, 2020	199,764	$	33.56
Forfeited	(5,416)	33.56
Outstanding as of December 31, 2021	194,348	$	33.56	8.98
Exercisable at December 31, 2021	48,946	$	33.56	8.91

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The Company estimated the fair value of each stock option on the date of grant using a Black–Scholes option-pricing model, applying the following assumptions:

Grant date	12/30/2020
Strike price	$33.56
Expected life (a)	6.25
Weighted average time to vest (b)	2.50
Expected dividend yield (c)	—
Expected volatility rate (d)	50.00%
Risk-free interest rate (e)	0.55%
Weighted average option grant date fair value	$15.51

(a)The expected life was estimated using the “Simplified Method” which utilizes the midpoint between the vesting date and the end of the contractual term. The Company used the simplified method due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to otherwise estimate the expected life of the stock options.

(b)The weighted average time to vest was calculated using the “Simplified Method” by applying 25% to each vesting year.

(c)At the grant date, no dividends were expected to be paid over the contractual term of the stock options granted, based on the Company's dividend policy, resulting in the use of a zero dividend rate.

(d)The expected volatility rate was based on the average of implied and observed historical volatility of comparable companies.

(e)The risk-free interest rate was interpolated from the five-year and seven-year Constant Maturity Treasury rate published by the United States Treasury as of the date of the grant.