Equity-Based Compensation

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

Equity-Based Compensation

Equity-Based Compensation

2020 Equity Incentive Plan

On October 14, 2020, the Company’s 2020 Equity Incentive Plan (the “2020 Plan”) became effective. The 2020 Plan authorized 6,683,919 new shares, subject to adjustments pursuant to the 2020 Plan.

Restricted Stock Units

Pursuant to the 2020 Plan, the Company grants restricted stock units (“RSUs”) to employees and members of the Company’s board of directors. The fair value of the RSUs is determined using the market value of the Company’s common stock on the grant date.

RSU activity under the 2020 Plan during the nine months ended September 30, 2023, was as follows:

	Number of Shares	Weighted Average Grant Date Fair Value
Outstanding non-vested, December 31, 2022	1,700,824	$	13.81
Shares granted	846,559	17.90
Shares vested	(564,358)	12.51
Shares forfeited	(135,313)	18.57
Outstanding non-vested, September 30, 2023	1,847,712	$	15.73

Performance Stock Units

The Company has granted performance stock units (“PSUs”) to certain employees. The PSUs cliff vest after three years and upon meeting certain revenue and adjusted EPS targets. The PSUs also contain a modifier based on the total stock return (“TSR”) compared to a certain index which modifies the number of PSUs that vest. The PSUs were valued using a Monte-Carlo simulation method on the date of grant based on the U.S. Treasury Constant Maturity rates. The following assumptions were used in the Monte Carlo simulation for computing the grant date fair value of the PSUs issued during the nine months ended September 30, 2023 and 2022:

	2023		2022
Volatility	90	%	60	%
Risk-free interest rate	3.74	%	2.83	%
Dividend yield	—	%	—	%

PSU activity under the 2020 Plan during the nine months ended September 30, 2023, was as follows:

	Number of Shares	Weighted Average Grant Date Fair Value
Outstanding non-vested, December 31, 2022	464,393	$	11.96
Shares granted	263,594	19.22
Shares vested	—	—
Shares forfeited	(33,176)	15.15
Outstanding non-vested, September 30, 2023	694,811	$	14.56

For the three months ended September 30, 2023 and 2022, the Company recognized $3.4 million and $4.2 million, respectively, in equity-based compensation expense. For the nine months ended September 30, 2023 and 2022, the Company recognized $11.9 million and $11.7 million, respectively, in equity-based compensation. At September 30, 2023, the Company had $24.7 million of unrecognized compensation costs related to RSUs and PSUs, which are expected to be recognized over approximately 2.0 years and 2.2 years, respectively.