Stock-Based Compensation

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-Based Compensation

(a) Stock Options

Total stock-based compensation expense charged as salaries and benefits expense in the consolidated statements of operations was $1.1 million and $0.9 million for the three months ended September 30, 2023 and 2022 respectively, and $2.8 million and $2.2 million for the nine months ended September 30, 2023 and 2022, respectively.

The following table sets forth a summary of the Company's stock option activity for the nine months ended September 30, 2023:

	Outstanding Options	Weighted average exercise price per share		Weighted average remaining contractual life (Years)	Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2022	250,000	$	10.31	0.90	$	20
Granted	—	—			—
Forfeited	(178,000)	12.16			—
Exercised	—	—			—
Outstanding at September 30, 2023	72,000	$	5.74	2.80	$	5
Vested, exercisable, expected to vest(1) at September 30, 2023	72,000	$	5.74	2.80	$	5
Exercisable at September 30, 2023	72,000	$	5.74	2.80	$	5

 (1) Options expected to vest reflect an estimated forfeiture rate.

The Company recognizes share-based compensation costs as expense on a straight-line basis over the option vesting period, which generally is four years. As of September 30, 2023, all options have vested and there was no unrecognized compensation costs.

(b) Restricted Stock Units and Performance Stock Units

The following table summarizes restricted stock unit and performance stock unit activity for the nine months ended September 30, 2023:

	Number of Awards	Weighted average grant date fair value per share
Outstanding at December 31, 2022	3,904,606	$	2.85
Granted	2,235,207	2.49
Forfeited	(136,806)	3.37
Vested and converted to shares, net of units withheld for taxes	(1,369,862)	2.46
Units withheld for taxes	(82,991)	2.26
Outstanding at September 30, 2023	4,550,154	$	2.78
Expected to vest at September 30, 2023	4,004,172	$	2.78

Restricted stock units and performance stock units granted under the Performant Financial Corporation Amended and Restated 2012 Stock Incentive Plan generally vest over periods between one year and four years.

As of September 30, 2023, there was approximately $10.5 million of total unrecognized compensation cost related to unvested restricted stock units granted to employees. This unrecognized compensation cost is expected to be recognized over an estimated weighted-average amortization period of approximately three years.