Share-Based Compensation

3 Months Ended

Mar. 31, 2025

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

13.Share-Based Compensation

The Compensation Committee of the Company’s Board of Directors is responsible for the administration of the Company’s stock incentive plans, which include the balance of shares remaining under the 2022 Long Term Incentive Plan (the “2022 LTIP”), which was approved by shareholders in May of 2022 and amended in May of 2024 and authorizes 3,735,000 shares, the maximum aggregate number to be issued, plus any shares available for grant under prior long term incentive plans as of the date the 2022 LTIP was approved, and any shares subject to awards granted under the prior plans that expire or are cancelled, forfeited, exchanged, settled in cash or otherwise terminated. In general, the Company’s 2022 LTIP provides for grants of restricted stock and performance-based awards to be issued with a per-share price not less than the fair market value of a share of common stock on the date of grant. The Company accounts for forfeitures of awards as they are incurred.

In May 2024 shareholders approved the ESPP, which became effective on September 16, 2024. The Company has reserved a total of 1,000,000 shares under the ESPP, all of which are authorized and available for future issuance under the ESPP. The ESPP provides a means by which eligible employees of the Company are given an opportunity to purchase shares of common stock at a discount as permitted under the Internal Revenue Code of 1986, as amended. During the three months ended March 31, 2025, there were 71,133 shares issued under the ESPP generating proceeds to the Company of $0.3 million. The Company has an outstanding liability

pertaining to the ESPP of less than $0.1 million as of March 31, 2025, included in accrued expenses, for employee contributions to the ESPP, pending issuance at the end of the offering period.

The table below presents the share-based compensation expense included in the Company’s accompanying condensed consolidated statements of operations:

	Three months ended March 31,
	2025		2024
Restricted stock awards	$	733	$	291
Performance stock units		307		67
Employee share purchase plan		83		—
Total share-based compensation expense	$	1,123	$	358

Under its approved long-term incentive plan, the Company grants share-based awards to its employees. The following table presents a summary of the Company’s unvested restricted stock awards and performance share units granted under the plan:

	Restricted stock awards			Performance stock units
		Weighted				Weighted
	Number	Average		Number		Average
	of	Fair Value		of		Fair Value
	Shares	Per Share		Shares		Per Share
Nonvested at December 31, 2024	1,008,232	$	6.56	534,231		$	3.65
Granted	205,963	$	5.94	293,073		$	7.17
Vested	(106,475)	$	5.46	—		$	—
Forfeited shares	(10,960)	$	8.56	—		$	—
Nonvested at March 31, 2025	1,096,760	$	6.53	827,304	(1)	$	4.89

(1) A maximum of 1.6 million common shares could be awarded based upon the Company’s achievement of set performance-metrics.

On March 20, 2025, the Company granted certain executives a total of 293,073 performance-based units. The performance-based units will potentially vest 100% if the target is met, with 50% of the units to be earned based on the achievement of an absolute adjusted EBITDA target, measured over a three-year performance period and 50% of the units to be earned based on the achievement of an objective, tiered return on relative total shareholder return, measured over a three-year performance period. The Company evaluates the probability of achieving this each reporting period. The fair value of the grants awarded related to the adjusted EBITDA target was $5.89 per share and the fair value of the grants awarded related to the relative total shareholder return was $8.45 valued using a Monte Carlo simulation model.

The following table presents the assumptions related to the performance share units granted in 2025 related to the relative total shareholder return, as indicated in the previous summary table:

		2025
Grant-date fair value	$	5.89
Risk-free interest rate		3.86	%
Volatility factor		65.52	%
Contractual term (years)		2.78

In the three months ended March 31, 2025, there were 15,000 options exercised generating proceeds to the Company of $0.1 million. In the three months ended March 31, 2024, there were 46,322 options exercised generating proceeds to the Company of $0.3 million.

The following table presents a summary of the unrecognized compensation cost, and the related weighted average recognition period associated with unvested awards and units as of March 31, 2025:

		Restricted stock awards		Performance stock units
Unrecognized compensation cost	$	5,486	$	3,772
Weighted average period for recognition (years)		2.15		2.24