(17) Share-Based Compensation

All share and per share data in the discussion below for all periods presented reflect the 1-for-7 Reverse Stock Split, which became effective on February 23, 2026. See Note 22, “Subsequent Events” for further information.

 

BitAccess:

BitAccess maintained a stock option plan for its employees under the Amended and Restated Stock Option Plan, (the “BitAccess Plan”). Pursuant to BitAccess Plan agreement, awards of stock options and restricted stock units (“BitAccess RSUs”) are permitted to be made to employees and shareholders of BitAccess. As of December 31, 2025, all awards under the BitAccess Plan had been issued.

The options under the BitAccess Plan generally vest over a two-year period following the one-year anniversary of the date of grant and expire not more than 10 years from the date of grant.

Options:

A summary of the BitAccess Plan’s stock option activity and related information is as follows:

 

 

Amount or
number of
Options

 

 

Weighted-average
exercise price

 

 

Weighted-average
remaining
contractual term

 

 

Weighted-average
grant-date fair
value

 

Outstanding at January 1, 2025

 

 

6,254

 

 

$

20.02

 

 

 

7.60

 

 

$

21.63

 

Granted

 

 

 

 

$

 

 

 

 

 

$

 

Exercised

 

 

 

 

$

 

 

 

 

 

$

 

Outstanding at December 31, 2025

 

 

6,254

 

 

$

20.02

 

 

 

6.60

 

 

$

21.63

 

Vested and exercisable at December 31, 2025

 

 

4,663

 

 

$

20.02

 

 

 

6.54

 

 

$

21.35

 

 

 

Amount or
number of
Options

 

 

Weighted-average
exercise price

 

 

Weighted-average
remaining
contractual term

 

 

Weighted-average
grant-date fair
value

 

Outstanding at January 1, 2024

 

 

6,254

 

 

$

20.02

 

 

 

8.60

 

 

$

21.63

 

Granted

 

 

 

 

 

 

 

 

 

 

$

 

Exercised

 

 

 

 

$

 

 

 

 

 

$

 

Outstanding at December 31, 2024

 

 

6,254

 

 

$

20.02

 

 

 

7.60

 

 

$

21.63

 

Vested and exercisable at December 31, 2024

 

 

3,242

 

 

$

20.02

 

 

 

 

 

$

21.70

 

2023 Omnibus Incentive Plan

Pursuant to the Incentive Plan the Board is authorized to grant awards of Class A common Stock, incentive stock options, non-statutory stock options, RSUs and restricted stock in an aggregate amount up to 861,349 shares of Class A common stock to eligible recipients, as defined in the Incentive Plan. The Company recognized $4.9 million and $3.4 million of share-based compensation expense during the years ended December 31, 2025 and 2024, respectively. Share-based compensation expense is included within selling and administrative expenses in the Consolidated Statements of Income. As of December 31, 2025, 532,508 shares of Class A common stock remained available to be issued under the plan, respectively.

PSUs

During the year ended December 31, 2025, the Company's Compensation Committee determined that the performance targets for the 2024 fiscal year were not met and no shares were awarded in 2025 as a result.

During the year ended December 31, 2024, the Company's Compensation Committee determined that the performance targets under the performance-based RSUs ("PSUs") granted in fiscal 2023 were achieved and certified the vesting of 82,874 shares under these PSU awards. For these PSUs, the Company recognized stock compensation in the Statement of Stockholders Equity as Additional-Paid-In Capital and Stock Compensation expense on the Consolidated Statements of Income during the years ended December 31, 2024 of $1.1 million. The Company had no unrecognized compensation expense associated with PSUs as of December 31, 2025 and 2024.

Time-based RSUs

During the year ended December 31, 2025 and 2024, the Company granted 2,448,298 and 1,267,481 time-based RSUs, respectively. These RSUs vest one-third on the first anniversary of the grant date and in equal quarterly installments over the two years following the one year anniversary.

For these time-based RSUs, the Company recognized stock-based compensation in the Consolidated Statement of Stockholders' Equity as Additional Paid-In Capital and stock-based compensation expense on the Consolidated Statements of Income during the years ended December 31, 2025 and 2024 of $2.2 million and $2.2 million, respectively. The Company had unrecognized compensation expense associated with time-based RSUs of $3.3 million and $2.4 million as of December 31, 2025 and 2024, respectively. RSU and PSU award activity for the years ended December 31, 2025 and 2024 is as follows:

 

Amount of RSUs

 

 

Weighted-average grant date fair value

 

Outstanding at January 1, 2025

 

232,098

 

 

$

16.80

 

Granted

 

349,757

 

 

$

13.16

 

Vested

 

(124,358

)

 

$

16.94

 

Forfeited

 

(43,616

)

 

$

13.16

 

Outstanding at December 31, 2025

 

413,881

 

 

$

14.07

 

 

Amount of PSUs

 

 

PSU Weighted-average
grant date fair value

 

 

Amount of RSUs

 

 

Weighted-average
grant date fair value

 

Outstanding at January 1, 2024

 

 

 

$

 

 

 

193,155

 

 

$

25.13

 

Granted

 

82,874

 

 

$

12.46

 

 

 

181,068

 

 

$

13.16

 

Vested

 

(82,874

)

 

$

12.46

 

 

 

(111,752

)

 

$

25.20

 

Forfeited

 

 

 

$

 

 

 

(30,373

)

 

$

16.94

 

Outstanding at December 31, 2024

 

 

 

$

 

 

 

232,098

 

 

$

16.80

 

 

 

 

 

 

 

 

 

 

 

 

 

Historical Timeline

Fiscal YearFiled
2025Mar 18, 2026Showing above
2024Mar 24, 2025
2023Apr 15, 2024

About Stock Compensation Disclosures

Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.

Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.