Atlanticus Holdings Corp Stock Compensation Disclosure

14.	Stock-Based Compensation

 

We currently have two stock-based compensation plans, the Second Amended and Restated Employee Stock Purchase Plan (the "ESPP") and the Fourth Amended and Restated 2014 Equity Incentive Plan (the "Fourth Amended 2014 Plan"). Our ESPP provides that we may issue up to 500,000 shares of our common stock under the plan. Our Fourth Amended 2014 Plan provides that we may grant equity awards representing up to 5,750,000 options on or shares of our common stock to members of our Board of Directors, employees, consultants and advisors. The Fourth Amended 2014 Plan was approved by our shareholders in May 2019. As of December 31, 2024, 42,859 shares remained available for issuance under the ESPP and 1,963,602 shares remained available for issuance under the Fourth Amended 2014 Plan.

 

Exercises and vesting under our stock-based compensation plans resulted in no income tax-related charges to paid-in capital during the years ended December 31, 2024 and 2023.

 

Restricted Stock and Restricted Stock Units

 

During the years ended December 31, 2024 and 2023, we granted 205,301 shares and 148,546 shares of restricted stock and restricted stock units (net of any forfeitures), respectively, with aggregate grant date fair values of $6.3 million and $3.7 million, respectively. We incurred expenses of $3.8 million and $3.1 million during the years ended December 31, 2024 and 2023, respectively, related to restricted stock awards. When we grant restricted stock and restricted stock units, we defer the grant date value of the restricted stock and restricted stock unit and amortize that value (net of the value of anticipated forfeitures) as compensation expense with an offsetting entry to the paid-in capital component of our consolidated shareholders’ equity. Our restricted stock awards typically vest over a range of 12 to 60 months (or other term as specified in the grant which may include the achievement of performance measures) and are amortized to salaries and benefits expense ratably over applicable vesting periods. As of December 31, 2024, our unamortized deferred compensation costs associated with non-vested restricted stock awards were $6.5 million with a weighted-average remaining amortization period of 3.5 years. No forfeitures have been included in our compensation cost estimates based on historical forfeiture rates.

 

The table below includes additional information about outstanding restricted stock and restricted stock units:

 

		Number of Shares				Weighted Average Grant Date Fair Value
Outstanding at December 31, 2023			244,225			$	32.75
Issued			218,650			$	30.96
Vested			(72,173	)		$	33.79
Forfeited			(13,349	)		$	31.44
Outstanding at December 31, 2024			377,353			$	31.56

 

Stock Options

 

The exercise price per share of the options awarded under the Fourth Amended 2014 Plan must be equal to or greater than the market price on the date the option is granted. The option period may not exceed 10 years from the date of grant. We had expense of $0.1 million and $0.7 million related to stock option-related compensation costs during the years ended December 31, 2024 and 2023, respectively. When applicable, we recognize stock option-related compensation expense for any awards with graded vesting on a straight-line basis over the vesting period for the entire award. The table below includes additional information about outstanding options:

 

		Number of Shares				Weighted Average Exercise Price				Weighted Average of Remaining Contractual Life (in years)				Aggregate Intrinsic Value
Outstanding at December 31, 2023			223,406			$	28.52
Issued			—			$	—
Exercised			(49,682	)		$	19.85
Expired/Forfeited			(13,333	)		$	27.48
Outstanding at December 31, 2024			160,391			$	31.30				1.2			$	3,926,942
Exercisable at December 31, 2024			160,391			$	31.30				1.2			$	3,926,942

 

Information on stock options granted, exercised and vested is as follows (in thousands, except per share data):

 

		Year ended December 31,
			2024				2023
Weighted average fair value per share of options granted			N/A				N/A
Cash received from options exercised, net		$	984			$	3,405
Aggregate intrinsic value of options exercised		$	1,566			$	15,497
Grant date fair value of shares vested		$	1,071			$	1,435

 

No options were issued during the years ended December 31, 2024 and 2023. We had $0.0 million and $0.1 million of unamortized deferred compensation costs associated with non-vested stock options as of December 31, 2024 and 2023, respectively, with a weighted average remaining amortization period of 0.0 years as of December 31, 2024. Upon exercise of outstanding options, the Company issues new shares.