Stock-Based Compensation

6 Months Ended

Jun. 30, 2022

The Company recorded approximately $3.6 million and $4.5 million for stock-based compensation in general and administrative expenses on the Consolidated Statements of Operations for the three months ended June 30, 2022 and 2021, respectively, and approximately $15.7 million and $7.2 million for the six months ended June 30, 2022 and 2021, respectively.

Stock Options

A summary of the stock option activity under the Company’s plans for the six months ended June 30, 2022 is as follows:


	Number of Shares	Weighted Average Exercise Price
Options outstanding at December 31, 2021	2,961,195	$	25.46
Options granted	2,953,059	$	15.80
Less:
Options exercised	566,583	$	12.65
Options forfeited	1,316,107	$	30.31
Options outstanding at June 30, 2022	4,031,564	$	18.59
Exercisable at June 30, 2022	1,427,681	$	22.60

The fair value of each stock option award granted during the six months ended June 30, 2022 was estimated as of the grant date using a Black-Scholes model with the following weighted average assumptions:


			Six Months Ended June 30, 2022
Expected term (in years)			3 - 5.5
Risk-free interest rate (%)			2.5%
Expected volatility (%)			42% - 59%
Dividend yield (%)			—
Weighted average grant date fair value per share			$6.70

As of June 30, 2022, there was approximately $13.3 million of unrecognized stock-based compensation expense related to stock options that will be recognized over a weighted-average period of approximately 2.2 years.

Restricted Stock Awards

A summary of the restricted stock activity under the Company’s plans for the six months ended June 30, 2022 is as follows:


	Number of Restricted Shares	Weighted Average Grant Date Fair Value
Nonvested at December 31, 2021	851,403	$	36.00
Granted	1,778,000	$	15.47
Vested	(309,100)	$	36.74
Forfeited	(817,912)	$	29.68
Nonvested at June 30, 2022	1,502,391	$	14.99

As of June 30, 2022, there was approximately $17.1 million of unrecognized stock-based compensation expense related to restricted stock that will be recognized over a weighted-average period of approximately 1.9 years.

Modification of Stock Option and Restricted Stock Awards

In the three months ended June 30, 2022, upon the Chief Legal Officer’s departure from the Company and in accordance with the terms of the Chief Legal Officer’s employment agreement, 41,487 previously granted time-based vesting stock option awards and 76,138 previously granted time-vesting restricted stock awards accelerated vesting. The Company accounted for the effects of the accelerated vesting of these stock awards as a modification, and recognized $2.2 million of incremental stock-based compensation which consisted of $0.3 million and $1.9 million for the acceleration of stock option awards and restricted stock awards, respectively, within general and administrative expenses on the Consolidated Statements of Operations for the three and six months ended June 30, 2022.

In the first quarter of 2022, upon the Chief Executive Officer’s departure from the Company and in accordance with the terms of the Chief Executive Officer’s separation agreement, 237,960 previously granted time-based vesting stock option awards and 142,302 previously granted time-vesting restricted stock awards accelerated vesting. The Company accounted for the effects of the accelerated vesting of these stock awards as a modification, and recognized $5.9 million of incremental stock-based compensation which consisted of $2.3 million and $3.6 million for the acceleration of stock option awards and restricted stock awards, respectively, within general and administrative expenses on the Consolidated Statements of Operations for the six months ended June 30, 2022. There were no such amounts for the three months ended June 30, 2022.