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Stockholder's Equity
 3 Months Ended
Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stockholder's Equity
9. Stockholders’ Equity
Stock-based Compensation
Stock-based compensation expense is associated with restricted stock units (“RSUs”), RSUs with performance conditions (“PSUs”), stock options, and the Company’s Employee Stock Purchase Plan (“ESPP”).
Certain PSUs granted to senior management during the three months ended March 31, 2024, will vest subject to the achievement of pre-established financial performance targets for the year ending December 31, 2024, and continued service. The fair value of these PSUs is based on the closing price of the Company's common stock on the date of grant. Stock-based compensation costs associated with these PSUs are recognized over the requisite service period of 4.25 years using graded vesting which results in more accelerated expense recognition compared to traditional time-based vesting over the same vesting period. Each reporting period, the Company monitors the probability of achieving the performance targets and may adjust periodic stock-based compensation expense based on its determination of the likelihood of achieving these performance targets and the estimated number of shares of common stock that will vest. The actual number of PSUs awarded is based on the actual performance during the performance period compared to the performance targets.
The following table sets forth the stock-based compensation expense included in the Company’s condensed consolidated statements of operations for the three months ended March 31, 2024 and 2023 (in thousands):
 Three Months Ended March 31,
 20242023
Cost of revenue$1,194 $1,191 
Research and development2,168 2,278 
Sales, general and administrative10,207 9,297 
Total$13,569 $12,766 
As of March 31, 2024, total unrecognized compensation cost related to unvested share-based compensation arrangements, excluding PSUs, was $56.4 million, which is expected to be recognized over a weighted average period of 2.6 years.
As of March 31, 2024, total unrecognized compensation cost related to unvested PSU share-based compensation arrangements was $27.3 million, which is expected to be recognized over a weighted average period of 3.5 years.
The total stock-based compensation cost capitalized in inventory was $1.2 million and $1.3 million as of March 31, 2024 and December 31, 2023, respectively.