Share-Based Compensation

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Share-Based Compensation

Share-Based Compensation

2020 Stock Option and Incentive Plan (the “2020 Plan”)

The 2020 Plan, approved on June 9, 2020, provides for the grant of stock options, stock appreciation rights, restricted stock units and other stock or cash-based awards. The Company initially reserved 9,693,750 shares, approximately 10% of the number of shares of its common stock outstanding upon the Closing Date, as the “Initial Limit” for the issuance of awards under the 2020 Plan. The 2020 Plan provides that beginning on January 1, 2021, the number of shares reserved and available for issuance under the plan will automatically increase each January 1st by 4% of the outstanding number of shares of the

Company’s common stock on the immediately preceding December 31st, or the “Annual Increase.” This limit is subject to adjustment in the event of a stock split, stock dividend or other change in the Company’s capitalization. As of March 31, 2022, there were 19,029,306 shares reserved and available for issuance under the 2020 Plan, which includes the 4% annual increase in 2022 less restricted stock units, performance stock units and stock options granted under the 2020 Plan.

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

	Three Months Ended March 31,
	2022		2021
	(in thousands)
Time-Based Restricted Stock Units	$	907	$	233
Performance-Based Restricted Stock Units	206		277
Stock Options	168		191
Total share-based compensation expense	$	1,281	$	701

During the three months ended March 31, 2022 and 2021, 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 award recipient in the accompanying condensed consolidated statements of operations as follows:

	Three Months Ended March 31,
	2022		2021
	(in thousands)
General and administrative	$	922	$	554
Selling and marketing	180		91
Research and development	95		28
Cost of services	84		28
Total	$	1,281	$	701

The following table provides information related to the Company’s share-based compensation award activity for the three months ended March 31, 2022:

	Time-Based Restricted Stock Units			Stock Options			Performance-Based Restricted Stock Units
	Number of Awards	Weighted Average Fair Value at Grant Date		Number of Awards	Weighted Average Exercise Price		Number of Awards	Weighted Average Fair Value at Grant Date
Outstanding as of December 31, 2021	231,625	$	35.17	194,348	$	33.56	99,289	$	33.44
Granted	259,069	22.49		—	—		—	—
Vested	(7,214)	28.20		—	—		—	—
Forfeited or expired	(20,455)	23.42		(5,808)	33.56		(4,874)	33.44
Outstanding as of March 31, 2022	463,025	$	28.71	188,540	$	33.56	94,415	$	33.44

The following table reflects the future share-based compensation expense for the outstanding awards at March 31, 2022:

	Unrecognized Share-based Compensation Expense		Weighted Average Amortization Period
	(in thousands)
Time-Based Restricted Stock Units	$	11,395	3.27 years
Stock Options	1,991		2.75 years
Performance-Based Restricted Stock Units	1,850		1.75 years
Total unrecognized share-based compensation expense	$	15,236	3.02 years