The Company recorded stock-based compensation on the Consolidated Statement of Operations for the three months ended March 31, 2024 and 2023 as follows (in thousands):


	Three Months Ended March 31,
	2024		2023
Cost of revenue	$	395	$	—
General and administrative	6,663		4,758
Research and development	171		—
Sales and marketing	545		—
Total stock-based compensation	$	7,774	$	4,758


	Number of Shares	Weighted Average Exercise Price
Outstanding at December 31, 2023	4,381,099	$	15.87
Granted	634,134	$	16.39
Exercised	(12,764)	$	7.97
Forfeited	(30,382)	$	19.79
Outstanding at March 31, 2024	4,972,087	$	19.97
Exercisable at March 31, 2024	1,241,392	$	19.97

The fair value of each stock option award granted during the three months ended March 31, 2024 was estimated as of the grant date using a Black-Scholes model with the following assumptions:


			Three Months Ended March 31, 2024
Expected term (in years)			5.5 - 6.5
Risk-free interest rate (%)			3.8% - 4.2%
Expected volatility (%)			55.6% - 62.8%
Dividend yield (%)			—
Weighted average grant date fair value per share			$9.77

As of March 31, 2024, there was approximately $15.8 million of unrecognized stock-based compensation expense related to stock options that will be recognized over a weighted-average period of approximately 1.7 years.

A summary of the restricted stock activity under the Company’s plans for the three months ended March 31, 2024 is as follows:


	Number of Restricted Shares	Weighted Average Grant Date Fair Value
Nonvested at December 31, 2023	1,961,919	$	13.83
Granted	378,996	$	16.40
Vested	(47,338)	$	11.89
Forfeited	(9,008)	$	13.85
Nonvested at March 31, 2024	2,284,569	$	14.29

As of March 31, 2024, there was approximately $17.9 million of unrecognized stock-based compensation expense related to restricted stock that will be recognized over a weighted-average period of approximately 1.8 years.

In the first quarter of 2024, the Company granted 179,333 PSUs subject to a performance condition and 179,333 PSUs subject to a market condition with an aggregate grant date fair value of approximately $3.0 million and $3.4 million, respectively. The

number of shares awarded will be subject to adjustment based on the achievement of the applicable performance targets. If the performance targets are achieved, the awards will vest at the end of the three-year requisite service period so long as the employee remains employed with the Company through the applicable vesting dates. For PSUs subject to a performance condition, compensation cost is recognized straight-line over the requisite service period if the achievement of the performance condition is probable. As of March 31, 2024, the Company has determined it is probable that the performance condition will be met. For PSUs subject to a market condition, compensation cost is recognized straight-line over the requisite service period, regardless of when, if ever, the market condition is satisfied.


	Number of Stock Units	Weighted Average Grant Date Fair Value
Nonvested at December 31, 2023	305,105	$	21.83
Granted	358,666	$	17.64
Vested	—	$	—
Forfeited	—	$	—
Nonvested at March 31, 2024	663,771	$	19.56

The fair value of each PSU granted subject to a market condition during the three months ended March 31, 2024 was estimated as of the grant date using a Monte Carlo simulation with the following assumptions:


						Three Months Ended March 31, 2024
Expected term (in years)						3.0
Risk-free interest rate (%)						4.5%
Expected volatility (%)						72.2%
Dividend yield (%)						—
Weighted average grant date fair value per share						$18.82

As of March 31, 2024, there was approximately $10.8 million of unrecognized stock-based compensation expense related to nonvested PSUs that will be recognized over a weighted-average period of approximately 2.6 years.