Stockholders’ Equity (Tables)

9 Months Ended

Sep. 30, 2023

The following table summarizes stock option activity under the PH Parent Option Plan and the Plan:


	Number of Shares	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life	Aggregate Intrinsic Value (in thousands)
Balance at December 31, 2022	13,176,721	$	7.86	9.02	$	197,695
Granted	—	—
Exercised	(2,844,461)	2.90
Forfeited	(234,829)	23.02
Balance at September 30, 2023	10,097,431	$	8.90	8.15	$	143,240
Exercisable September 30, 2023	7,864,999	$	4.90	8.33	$	142,746

Schedule of Restricted Stock Unit, Activity

The following table summarizes the RSU activity under the Plan:


	Number of Shares	Grant Date Fair Value
Unvested and outstanding at December 31, 2022	2,404,664	$	23.81
Granted	1,121,328	27.64
Vested	(425,076)	24.11
Forfeited	(183,248)	24.37
Unvested and outstanding at September 30, 2023	2,917,668	$	25.20

PSU Activity

The following table summarizes the PSU activity under the Plan:


	Number of Shares	Grant Date Fair Value
Unvested and outstanding at December 31, 2022	—	$	—
Granted(1)(2)	781,132	31.91
Vested	—	—
Forfeited	(5,103)	27.61
Unvested and outstanding at September 30, 2023	776,029	$	31.94
(1) During the nine months ended September 30, 2023, Privia awarded RSUs in the form of PSUs to certain executive officers, market leaders and employees which vest after three years, subject to continued employment of the recipients and the achievement of certain performance metric targets. The Company has identified certain performance metrics associated with these awards and certain targets will be fully established at a future date. The Company has determined that the service inception date precedes the grant date for these awards as (a) the awards were authorized prior to establishing an accounting grant date, (b) the recipients began providing services prior to the grant date, and (c) there are performance conditions that, if not met by the accounting grant date, will result in the forfeiture of the awards. As the service inception date precedes the accounting grant date, the Company recognizes stock-based compensation expense over the requisite service period based on the fair value at each reporting date.
(2) During the nine months ended September 30, 2023, Privia awarded RSUs in the form of PSUs which vest after four years, subject to continued employment and the achievement of certain market performance metric targets. The fair value of the PSUs are determined using a Monte Carlo valuation model as of the grant date and the stock-based compensation is recognized on a straight-line basis over the requisite service period.

Schedule of Disclosure of Share-based Compensation Arrangements by Share-based Payment Award

Stock-based compensation expense was classified in the condensed consolidated statements of operations as follows:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Dollars in Thousands)	2023		2022		2023		2022
Cost of platform	$	3,445	$	3,095	$	8,739	$	11,382
Sales and marketing	661		672		1,757		2,202
General and administrative	6,695		11,066		14,933		44,600
Total stock-based compensation	$	10,801	$	14,833	$	25,429	$	58,184