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Stock-Based Compensation
3 Months Ended
Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Stock options
We have awarded stock options to certain employees including our senior leadership team. The number of options and exercise price of each option is determined by an independent committee designated by our Board of Directors. The options granted are generally exercisable over a 10-year period from the date of the grant. Outstanding options expire on various dates through the year 2028. The range of exercise prices for the outstanding options as of March 31, 2024 is $12.90 and $13.73 per option, and the options generally vest in one-fourth and one-fifth increments over four and five-year periods, respectively.
A summary of stock option activity for the quarter ended March 31, 2024 is as follows:
Options
Shares
Weighted
Average
Exercise
Price
Aggregate
Intrinsic
Value
Weighted
Average
Remaining
Term
(Years)
Outstanding—December 31, 2023
122 $13.71 $— 1.44
Granted— — 
Exercised— — 
Canceled(64)14.21 
Outstanding—March 31, 2024
58 $13.16 $— 2.62
Exercisable—March 31, 2024
58 13.16 $— 2.62
Stock-based compensation related to stock options is measured at the grant date based on the calculated fair value of the award, and is recognized as expense over the requisite employee service period, which is generally the vesting period of the grant with a corresponding increase to additional paid-in capital. We did not recognize stock-based compensation expense related to stock options for the quarter ended March 31, 2024 or the quarter ended March 26, 2023. As of March 31, 2024, we had no unrecognized stock-based compensation expense related to stock options. We record stock-based compensation expense within general and administrative expenses in the condensed consolidated statements of operations.
Restricted stock units
We award restricted stock units ("RSUs") to certain employees and certain non-employee members of our Board of Directors. Grants of RSUs to our Board of Directors fully vest on the first anniversary of the grant date, or upon termination from the Board of Directors for any reason other than for cause, a pro rata portion of the shares vest on the termination date. The employee grants generally vest in one-third increments over a three-year period.
A summary of RSU activity for the quarter ended March 31, 2024 is as follows:
RSUs
Number of RSUs
Weighted Average
Fair Value per Share
Non-vested as of December 31, 2023
801 $7.18 
Granted53 10.32 
Vested(13)7.11 
Canceled(15)7.61 
Non-vested as of March 31, 2024
826 $7.37 
For the quarter ended March 31, 2024, we recognized stock-based compensation expense related to RSUs of $0.8 million. For the quarter ended March 26, 2023, we recognized stock-based compensation expense related to RSUs of $0.6 million. As of March 31, 2024, unrecognized stock-based compensation expense for RSUs was $3.7 million, which will be recognized through the first quarter of 2027.
Performance stock units
We award performance share units ("PSUs") to certain of our employees. We have PSUs that have certain vesting conditions based upon our stock price and relative stock performance. We also have PSUs that are based solely on stock price.
Because these PSUs are subject to service and market vesting conditions, we determine the fair market value of each grant using a Monte Carlo simulation model. Participants are entitled to receive a specified number of shares of our common stock contingent on achievement of a stock return on our common stock. For the quarter ended March 31, 2024, we recognized stock-based compensation expense for PSUs with market vesting conditions of $0.9 million. For the quarter ended March 26, 2023, we recognized stock-based compensation expense for PSUs with market vesting conditions of $0.3 million. As of March 31, 2024, unrecognized stock-based compensation expense for PSUs was $2.5 million, which will be recognized through the second quarter of 2026.
A summary of activity for PSUs with market vesting conditions for the quarter ended March 31, 2024 is as follows:
PSUs
Number
of PSUs
Weighted
Average
Fair Value
per Share
Non-vested as of December 31, 2023
513 $9.59 
Granted49 9.61 
Vested(123)5.93 
Canceled— — 
Non-vested as of March 31, 2024
440 $10.61