We recognized stock-based compensation expense in the following line items on the consolidated statements of operations for the years ended January 31, 2024, 2023, and 2022:


	Year Ended January 31,
(in thousands)	2024		2023		2022
Component of (loss) income before provision for income taxes:
Cost of revenue:
Software	$	(9)	$	229	$	229
Software service	1,071		1,078		$	1,160
Professional service and other	355		2,038		$	2,535

Research and development, net	2,232		8,048		$	7,792
Selling, general and administrative	8,539		13,955		$	21,320
Total stock-based compensation expense	12,188		25,348		$	33,036
Income tax benefits related to stock-based compensation (before consideration of valuation allowances)	1,615		3,358		$	4,196
Total stock-based compensation, net of taxes	$	10,573	$	21,990	$	28,840

As of January 31, 2024, there was approximately $15.7 million of total unrecognized compensation expense, net of estimated forfeitures, related to unvested restricted stock units, which is expected to be recognized over a weighted-average period of 1.52 years.

The following table summarizes stock-based compensation expense by type of award for the years ended January 31, 2024, 2023, and 2022:


	Year Ended January 31,
(in thousands)	2024		2023		2022
Restricted stock units and restricted stock awards	$	12,777	$	21,759	$	31,825
Stock bonus program and bonus share program	(610)		3,487		1,040
Total equity-settled awards	12,167		25,246		32,865
Phantom stock units (cash-settled awards)	21		102		171
Total stock-based compensation expense	$	12,188	$	25,348	$	33,036

Awards under Cognyte’s stock bonus and bonus share programs are accounted for as liability-classified awards, because the obligations are based predominantly on fixed monetary amounts that are generally known at inception of the obligation, to be settled with a variable number of shares of Cognyte common stock.

Cognyte periodically awards restricted stock units (“RSU”) to directors, officers, and other employees. The fair value of these awards is equivalent to the market value of Cognyte’s common stock on the grant date. RSUs are not shares of Cognyte common stock and do not have any of the rights or privileges thereof, including voting or dividend rights. On the applicable vesting date, the holder of an RSU becomes entitled to a share of Cognyte common stock. RSUs are subject to certain restrictions and forfeiture provisions prior to vesting.

Cognyte periodically awards performance stock units (“PSU”) to executive officers that vest upon the achievement of specified performance goals. The Company recognizes compensation expenses for the value of its awards, which have graded vesting based on service conditions, using the straight-line method, over the requisite service period of each of the awards, net of estimated forfeitures.

Verint also used to award RSUs to directors, officers, and other employees, and PSUs to executive officers before the spin-off. Some of the expenses recognized in the years ended January 31, 2023, and 2022 relate to awards that were initially granted by Verint to Cognyte employees before the spin-off.

Once a performance vesting condition has been defined and communicated, and the requisite service period has begun, the Company recognizes compensation expenses for the value of such awards, if and when the Company concludes that it is probable that a performance condition will be achieved based on the straight-line attribution method over the requisite service period. The Company reassesses the probability of vesting at each reporting period for awards with performance conditions and adjusts its compensation expenses based on its probability assessment.

RSUs that are expected to be settled with cash payments upon vesting, if any, are reflected as liabilities on our consolidated balance sheets. Such RSUs were insignificant at January 31, 2024, 2023, and 2022.

The following table (“Award Activity Table”) summarizes activity for RSUs and PSUs to Company personnel that reduce available plan capacity under the plans for the years ended January 31, 2024 and 2023:


	Year Ended January 31,			Year Ended January 31,
	2024			2023
(in thousands, except grant date fair values)	Shares or Units	Weighted-Average Grant-Date Fair Value		Shares or Units	Weighted-Average Grant-Date Fair Value
Opening balance	1,923	$	11.02	1,901	$	24.42
Granted	4,041	$	4.55	2,208	$	6.87
Released	(2,164)	$	7.51	(1,627)	$	19.53
Forfeited	(203)	$	18.43	(559)	$	15.43
Closing balance	3,597	$	5.44	1,923	$	11.02

We are obligated to make severance payments for the benefit of certain employees of Israel and our foreign subsidiaries. Severance payments made to Israeli employees are considered significant compared to all other subsidiaries with severance payment arrangements. Under Israeli law, we are obligated to make severance payments to certain employees of our Israeli subsidiaries, subject to certain conditions. In most cases, our liability for these severance payments is fully provided for by regular deposits to funds administered by insurance providers and by an accrual for the amount of our liability which has not yet been deposited.

Severance expenses for our Israeli employees for the years ended January 31, 2024, 2023, and 2022 were $6.3 million, $8.8 million, and $9.0 million respectively.