In April 2021, the Board of Directors and the stockholders of the Company adopted the 2021 Equity Incentive Plan (the 2021 Plan). The Company may grant stock options, restricted stock units (RSUs), stock appreciation rights, restricted stock awards and other forms of stock-based compensation. As of March 31, 2024, 18.9 million shares of Class A common stock were available for grant.

The following table presents the classification of stock-based compensation expense for employees and non-employees within the Condensed Consolidated Statements of Operations:


	Three months ended March 31,
(in thousands)	2024		2023
Cost of revenue	$	766	$	1,011
Research and development	7,666		2,683
General and administrative	7,077		4,578
Total	$	15,509	$	8,272

Stock options are primarily granted to executive leaders at the Company, generally vest over four years and expire no later than 10 years from the date of grant.


(in thousands except share and per share amounts)	Shares	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value
Outstanding as of December 31, 2023	14,957,617	$	6.13	7.0	$	72,416
Granted	2,558,102	10.09
Cancelled	(178,609)	12.70
Exercised	(1,303,878)	2.80			11,575
Outstanding as of March 31, 2024	16,033,232	$	6.99	7.3	$	64,131
Exercisable as of March 31, 2024	8,909,647	$	5.49	6.2	$	51,959

The fair value of options granted to employees is calculated on the grant date using the Black-Scholes option valuation model. The weighted-average grant-date fair values of stock options granted during the three months ended March 31, 2024 and 2023 were $6.41 and $5.32, respectively.

The following weighted-average assumptions were used to calculate the grant-date fair value of stock options:


	Three months ended March 31,
	2024		2023
Expected term (in years)	6.3		6.3
Expected volatility	65	%	64	%
Expected dividend yield	—		—
Risk-free interest rate	4.2	%	3.5	%

As of March 31, 2024, $43.9 million of unrecognized compensation cost related to stock options is expected to be recognized as expense over approximately the next three years.

Equity awards granted to employees primarily consist of RSUs and generally vest over four years. The weighted-average grant-date fair value of RSUs generally is determined based on the number of units granted and the quoted price of Recursion’s common stock on the date of grant.

The following table summarizes Recursion’s RSU activity during the three months ended March 31, 2024:


	Stock units	Weighted-average grant date fair value
Outstanding as of December 31, 2023	15,223,764	$	8.39
Granted	1,840,877	10.46
Vested	(1,023,464)	8.60
Forfeited	(409,634)	7.99
Outstanding as of March 31, 2024	15,631,543	$	8.63

The fair market value of RSUs vested was $13.0 million during the three months ended March 31, 2024. As of March 31, 2024, $124.8 million of unrecognized compensation cost related to RSUs is expected to be recognized as expense over approximately the next three years.