Note 11 — Share-based Compensation
We have granted restricted stock and restricted stock units (collectively, “Restricted Stock”), as well as unrestricted stock and stock options, to employees, consultants and non-employee directors under our 2017 Omnibus Incentive Plan.
For the years ended December 31, 2024 and 2023, the Company recognized approximately $19.9 million and $26.6 million, respectively, of share-based compensation expense related to all share-based awards. As of December 31, 2024, unrecognized compensation expense, based on the grant date fair value, for all share-based awards totaled approximately $53.6 million, of which $39.8 million is expected to be recognized over a weighted-average period of 1.5 years.
Restricted Stock
Upon the vesting of restricted stock, shares of common stock will be released to the grantee. Upon the vesting of certain restricted stock units, the units will be converted into shares of common stock and released to the grantee. As of December 31, 2024, there was no Restricted Stock that would be required to be settled in cash.
As of December 31, 2024, we had approximately 8.8 million shares of service-based Restricted Stock outstanding and 4.5 million shares of performance-based Restricted Stock. The fair value of the Restricted Stock was established by the market price on the date of grant and, for service-based awards, is being recognized as compensation expense ratably over the vesting term.
The table below provides a summary of our Restricted Stock transactions for the year ended December 31, 2024 (in thousands, except for per share information):
| | | | | | | | | | | |
| Shares | | Weighted Average Grant Date Fair Value |
| Unvested at January 1, 2024 | 12,812 | | $ | 4.72 | |
| Granted | 3,832 | | 4.75 | |
| Vested | (3,176) | | 4.60 | |
| Forfeited | (183) | | 5.71 | |
| Unvested at December 31, 2024 | 13,285 | | $ | 4.71 | |
Stock Options
During the year ended December 31, 2024, certain 2017 Plan participants were granted non-qualified options to purchase shares of common stock. Stock options were granted at an exercise price of $10.00, which was above the market price of the common stock on the date of grant. Stock options vest after three years of service or as otherwise set forth in the underlying award agreement. Vested options shall be exercisable at such time and under such conditions set forth in the underlying award agreement, but in no event shall any option be exercisable later than the tenth anniversary of the date of grant.
The following table provides a summary of our stock option transactions for the year ended December 31, 2024 (stock options in thousands):
| | | | | | | | | | | |
| Stock Options | | Weighted Average Exercise Price |
| Outstanding at January 1, 2024 | — | | $ | — | |
| Granted | 1,479 | | 10.00 | |
| Exercised | — | | — | |
| Forfeited | — | | — | |
| Outstanding at December 31, 2024 | 1,479 | | $ | 10.00 | |
| Exercisable at December 31, 2024 | — | | | $ | — | |
The fair value of each stock option award was estimated using the Black-Scholes option pricing model which resulted in a grant date fair value of $2.69. Valuation assumptions used to determine the grant date fair value were as follows:
| | | | | |
| Expected term (in years) | 6.5 |
| Expected volatility | 76.0 | % |
| Expected dividend yield | — | % |
| Risk-free rate | 3.8 | % |
Due to our limited history, the Company has elected to apply the simplified method to determine the expected term. Additionally, due to our limited history, expected volatility is based on a blend of our historical volatility and our implied volatility. The expected dividend yield is based on our historical yields on the date of grant. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant.