12. STOCK-BASED COMPENSATION

During the year ended December 31, 2025, 79,952 shares of RSUs vested, with 19,797 shares of common stock valued at $0.3 million withheld to pay applicable required employee statutory withholding taxes on the vesting date. The shares withheld for taxes were returned to the share reserve and are available for future issuance in accordance with provisions of the Equity and Incentive Plan.

The only stock-based compensation granted by the Company were service-based RSUs. The total amount of stock-based compensation expense recognized in general and administrative expenses in the accompanying consolidated statements of operations and comprehensive loss was $2.3 million for the year ended December 31, 2025, excluding $0.3 million withheld to pay for applicable required employee statutory withholding taxes on the vesting date, and $0.6 million for the period from October 3 through December 31, 2024. As of December 31, 2025 and 2024, the remaining unamortized stock-based compensation expense totaled $7.7 million and $10.0 million, respectively, and these awards are expected to be recognized over a remaining weighted average period of 1.9 years and 2.5 years, respectively. Stock-based compensation expense is recognized on a straight-line basis over the total requisite service period for the entire award.

Pursuant to the Equity and Incentive Plan, the Company made service-based grants of RSUs to certain employees and non-employee directors. The RSUs have no rights as a common stockholder, but have dividend equivalent rights equal to the cash dividends paid with respect to the corresponding number of common shares to be issued in respect of the RSUs. The vesting terms of these grants are specific to the individual grant, with a maximum term of 5 years, are subject to the holder's continued service through the applicable vesting dates and the terms of the individual grant agreements. The grant date fair value of service-based RSUs were based on the market price per share of the Company's Common Stock on the grant date or on the 10-day volume weighted average price per share of the Company's Common Stock on the grant date.

The following table presents information about the Company's RSU activity:

 

 

Successor

 

 

Successor

 

 

 

For the year ended December 31,

 

 

Period from October 3 through December 31,

 

 

 

2025

 

 

2024

 

(in thousands, except per share amounts)

 

Number of Shares

 

 

Weighted Average Grant Date Fair Value per Share

 

 

Number of Shares

 

Weighted Average Grant Date Fair Value per Share

 

Unvested RSU grants outstanding as of beginning of period

 

 

556

 

 

$

19.00

 

 

 

 

$

 

Granted during the period

 

 

507

 

 

 

12.97

 

 

 

557

 

 

19.00

 

Vested during the period

 

 

(80

)

 

 

19.00

 

 

 

 

 

 

Forfeited during the period

 

 

(392

)

 

 

16.60

 

 

 

(1

)

 

19.00

 

Unvested RSU grants outstanding as of end of period

 

 

591

 

 

$

15.42

 

 

 

556

 

$

19.00

 

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Mar 20, 2025

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.