The 2021 Stock Option and Incentive Plan (the “2021 Plan”) was adopted by the board of directors and approved by the Company’s stockholders following the corporate conversion effected in connection with the Company’s initial public offering and became effective as of July 26, 2021. The 2021 Plan replaced both the Company’s 2019 Equity Option Plan (the “2019 Plan”) and the Project Angel Parent, LLC Equity Plan (the “2018 Plan”). Outstanding options to purchase Class B Units granted under the 2019 Plan were converted into options to purchase shares of common stock, and all outstanding Carried Equity Units granted under the 2018 Plan were converted into restricted stock awards (“RSAs”), both of which have been granted under the 2021 Plan.

The Company had initially reserved 13,171,588 shares of its common stock for the issuance of awards under the 2021 Plan. The 2021 Plan provides that the number of shares reserved and available for issuance under the 2021 Plan will automatically increase on January 1, 2022, and each January 1 thereafter, by 5% of the outstanding number of shares of common stock on the immediately preceding December 31, or such lesser number of shares as determined by the Company’s compensation committee. The number of shares reserved under the 2021 Plan is subject to adjustment in the event of a stock split, stock dividend, or other change in the Company’s capitalization.

The 2021 Plan provides flexibility to the Company’s compensation committee to use various equity-based incentive awards as compensation tools to motivate the Company’s workforce. The incentive awards that may be granted under the 2021 Plan include, but are not limited to, options to purchase common stock, stock appreciation rights, restricted shares of common stock, restricted stock units, and cash bonuses.

A summary of stock option activity during the three months ended March 31, 2024, is as follows (in thousands, except options, price per option, and term amounts):


	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contract Term (in years)	Aggregate Intrinsic Value




Outstanding – January 1, 2024	3,976,372	$	12.53	6.68	$	49,670
Granted	—	—
Exercised	(26,856)	7.12
Forfeited	(18,964)	22.19
Outstanding – March 31, 2024	3,930,552	$	12.52	6.39	$	30,230
Vested and expected to vest in the future at March 31, 2024	3,930,552	12.52		6.39	30,230
Exercisable at March 31, 2024	3,189,348	$	10.62	6.05	$	29,546

The Company recognized $1.3 million and $1.3 million in share-based compensation expense related to time-based and performance-based stock options for the three months ended March 31, 2024 and 2023, respectively. During the three months ended March 31, 2024 and 2023, performance-based options were probable of vesting and, therefore, were included as part of share-based compensation expense.

As of March 31, 2024, there was $7.9 million of unrecognized share-based compensation expense related to stock options, which is expected to be recognized over a weighted-average period of 1.7 years.


	Number of RSUs	Weighted Average Grant Date Fair Value
Non-vested – January 1, 2024	4,919,744	$	17.19
Granted	85,949	19.01
Vested	(261,847)	17.86
Forfeited	(174,781)	17.18
Non-vested – March 31, 2024	4,569,065	$	17.18

Each RSU represents the right to receive one share of the Company’s common stock upon vesting and settlement. As of March 31, 2024, 4,569,065 RSUs are expected to vest. The Company recognized $6.4 million and $3.4 million in share-based compensation expense related to RSUs for the three months ended March 31, 2024 and 2023, respectively.

As of March 31, 2024, there was $62.1 million of unrecognized share-based compensation expense related to RSUs, which is expected to be recognized over a weighted-average period of 2.65 years.

As of March 31, 2024, the Company has issued 0 shares of common stock pursuant to the 2021 Employee Stock Purchase Plan under its employee stock purchase program (“ESPP”). As of March 31, 2024, there was $0.1 million of unrecognized share-based compensation related to the ESPP that is expected to be recognized over the remaining term of the current offering period. The Company recognized $0.2 million and $0.1 million of share-based compensation expense related to the ESPP for both the three months ended March 31, 2024 and 2023, respectively.

Share-based compensation for share-based awards granted to participants has been recorded in the condensed consolidated statements 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 revenues		$	782	$	853
General and administrative		4,393		2,264
Research and development (1)		1,502		1,783
Sales and marketing		1,259		290
Restructuring related costs (2)		(133)		(299)
Total share-based compensation expense		$	7,803	$	4,891
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(1)Net of $0.1 million additions to capitalized software on the Company’s condensed consolidated balance sheets during both the three months ended March 31, 2024 and 2023, respectively.

(2)Relates to unvested stock compensation that was forfeited as part of the 2024 Realignment Plan and 2023 Restructuring Plan. See Note 12, “Restructuring.”