In connection with the Closing, the Company adopted the 2021 Equity Incentive Plan (the “2021 Plan”) and the 2021 Employee Stock Purchase Plan (“2021 ESPP”). The number of shares available for issuance under the 2021 Plan is increased on the first day of each fiscal year, beginning on January 1, 2022, in an amount as provided in the 2021 Plan. Pursuant to this automatic increase feature of the 2021 Plan, 1,054,867 shares were added as available for issuance thereunder on January 1, 2024. As of March 31, 2024, 818,433 shares were available for issuance under the 2021 Plan.

The number of shares available for issuance under the 2021 ESPP is increased on the first day of each fiscal year, beginning on January 1, 2022, in an amount as provided in the 2021 ESPP. Pursuant to this automatic increase feature of the 2021 ESPP, 210,973 shares were added as available for issuance thereunder on January 1, 2024. As of March 31, 2024, 743,659 shares were available for issuance under the 2021 ESPP.

The Company received $267 in cash proceeds from options exercised during the three months ended March 31, 2024, and there were no options exercised during the three months ended March 31, 2023. There were no options granted during the three months ended March 31, 2024 and 2023.

For RSUs with service-based vesting conditions, the fair value is calculated based upon the Company’s closing stock price on the date of grant, and the stock-based compensation expense is recognized over the applicable grant vesting term, generally four years.

As of March 31, 2024, there was $31,078 of total unrecognized compensation expense related to options and RSUs expected to be recognized over a weighted average-period of 1.95 years.