InPoint Commercial Real Estate Income, Inc. Stock Compensation Disclosure
Note 11 – Equity-Based Compensation
With each stock grant, the Company awards each of its three independent directors an equal number of restricted shares. The table below summarizes total stock grants as of December 31, 2025 with a vesting date after January 1, 2023.
Grant Date |
Class of common stock granted |
Total number of shares granted |
|
Grant Date Fair Value Per Share |
|
Total Fair Value of Grant |
|
Proportion of total shares that vest annually |
|
Vesting Date Year 1 |
Vesting Date Year 2 |
Vesting Date Year 3 |
||||
December 1, 2020 |
Class I |
|
1,393 |
|
$ |
21.54 |
|
$ |
30 |
|
|
|
12/1/2021 |
12/1/2022 |
12/1/2023 |
|
October 14, 2021 |
Class I |
|
1,477 |
|
$ |
20.31 |
|
$ |
30 |
|
|
|
10/14/2022 |
10/14/2023 |
10/14/2024 |
|
October 3, 2022 |
Class I |
|
1,534 |
|
$ |
19.55 |
|
$ |
30 |
|
|
|
10/3/2023 |
10/3/2024 |
10/3/2025 |
|
September 29, 2023 |
Class I |
|
1,722 |
|
$ |
17.42 |
|
$ |
30 |
|
|
|
9/29/2024 |
9/29/2025 |
9/29/2026 |
|
September 12, 2024 |
Class I |
|
1,812 |
|
$ |
16.56 |
|
$ |
30 |
|
|
|
9/12/2025 |
9/12/2026 |
9/12/2027 |
|
September 18, 2025 |
Class I |
|
1,871 |
|
$ |
16.03 |
|
$ |
30 |
|
|
|
9/18/2026 |
9/18/2027 |
9/18/2028 |
|
Under the RSP, restricted shares generally vest over a three-year vesting period from the date of the grant, subject to the specific terms of the grant. Restricted shares are included in common stock outstanding on the grant date. The grant-date value of the restricted shares is amortized over the vesting period representing the requisite service period. Compensation expense associated with the restricted shares issued to the independent directors was $30, $30 and $31 for the years ended December 31, 2025, 2024 and 2023, respectively. As of December 31, 2025, the Company had $53 of unrecognized compensation expense related to the unvested restricted shares, in the
aggregate. The weighted average remaining period that compensation expense related to unvested restricted shares will be recognized is 1.4 years. The total fair value at the vesting date for restricted shares that vested during the year ended December 31, 2025 was $27.
A summary table of the status of the restricted shares granted under the RSP is presented below:
|
|
Restricted Shares |
|
|
Weighted |
|
||
Outstanding at December 31, 2024 |
|
|
3,471 |
|
|
$ |
17.29 |
|
Granted |
|
|
1,871 |
|
|
|
16.03 |
|
Vested |
|
|
1,689 |
|
|
|
17.76 |
|
Converted |
|
|
— |
|
|
|
— |
|
Forfeited |
|
|
— |
|
|
|
— |
|
Outstanding at December 31, 2025 |
|
|
3,653 |
|
|
$ |
16.42 |
|
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.