Note 14. Stock-Based Compensation

The 2019 Equity Incentive Plan authorizes the granting of stock-based compensation awards to directors, officers, employees, and advisors of the Company in the form of restricted stock awards or stock options that settle in shares of the Company’s common stock upon vesting.

The following table presents the Company’s stock-based compensation expense by category:

​

​

Stock-based compensation expense is recognized in Selling, general and administrative on the Condensed Consolidated Statements of Operations.

Restricted Common Stock Awards

Performance-Based Awards

Performance-based awards are eligible to vest over a three-year performance period upon the successful completion of specified milestones related to added infrastructure capacity and Adjusted EBITDA through December 31, 2023.

The following table presents a summary of the Company’s performance-based awards activity:

​

​

As of June 30, 2023, there was no unrecognized compensation cost related to the performance-based awards.

In July 2023, the Company adopted a new long-term incentive program under its 2019 Equity Incentive Plan, under which employees are eligible to receive performance-based awards that are eligible to vest based on the relative performance of the Company’s common stock (the Company “Total Stockholder Return” or “TSR”), compared to the performance of the Russell 3000 Index (the “Index TSR”), during the three-year performance period ending December 31, 2025. The TSR awards have a vesting range of 0% to 200% of the recipient’s target award, subject to the recipient’s continuous employment with the Company through July 31, 2026. In July 2023, the Company awarded 1.7 million shares of restricted common stock and 0.2 million restricted stock units. The awards have an aggregate grant date fair value of approximately $38.0 million.

Service-Based Awards

Service-based awards generally vest over a one to two-year service period.

​

The following table presents a summary of the Company’s service-based awards activity:

​

​

As of June 30, 2023, there was approximately $29.8 million of unrecognized compensation cost related to the service-based awards, which is expected to be recognized over a remaining weighted-average vesting period of approximately 12 months.

In July 2023, the Company awarded 0.8 million service-based restricted common stock and 0.1 million restricted stock units to its employees under the 2019 Equity Incentive Plan. These awards are eligible to vest in one-third annual installments over a three-year service period, subject to the recipient’s continuous employment with the Company through the applicable vesting dates, and have an aggregate grant date fair value of $19.7 million.