Share-Based Compensation

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Share-Based Compensation

NOTE 11. Share‑Based Compensation

Amendment to the 2018 Stock Incentive Plan

On May 8, 2024, the Company’s stockholders approved an amendment to the Company’s 2018 Stock Incentive Plan (the “2018 Plan”) which increased the number of shares of Common Stock, par value $0.01 per share, authorized for issuance under the 2018 Plan by 2,800,000 shares to 6,172,484 shares. As of December 31, 2023, 799,111 shares remained available for grant of the 3,372,483 shares originally authorized for issuance under the 2018 Plan.

Current Period Activity

During the three months ended September 30, 2024, the Company issued restricted stock awards for 54,007 shares of Common Stock, of which awards for 5,216 shares were fully vested on the grant date, awards for 93 shares vest over two years, awards for 1,873 shares vest over three years, and awards for 46,825 shares cliff vest after twenty-one months.

For the nine months ended September 30, 2024, the Company issued restricted stock awards for 527,640 shares of Common Stock, of which awards for 19,312 shares were fully vested on the grant date, awards for 73,887 shares vest over two years, awards for 1,534 shares cliff vest after two years, awards for 46,825 shares cliff vest after twenty-one months, awards for 94,748 shares vest over three years, and awards for 291,334 shares vest over four years.

Stock option award and restricted stock award activity during the nine months ended September 30, 2024 and 2023 was as follows:

	Shares Subject to Stock Option Awards
	Nine Months Ended September 30,
	2024							2023
	Avg wtd		Avg wtd					Avg wtd		Avg wtd
	grant-date		exercise					grant-date		exercise
	fair value		price		Units			fair value		price		Units
Outstanding at beginning of period	$	4.68	$	8.76		1,801,853		$	4.31	$	7.57		2,884,180
Forfeited		6.31		13.84		(831	)		—		—		—
Exercised		4.54		8.49		(822,029	)		3.70		5.70		(916,325	)
Outstanding at end of the period	$	4.80	$	8.99		978,993		$	4.59	$	8.44		1,967,855
Vested	$	4.79	$	8.94		802,795		$	4.57	$	8.36		1,791,657
Unvested		4.85		9.23		176,198			4.85		9.23		176,198

	Restricted Stock Awards
	Nine Months Ended September 30,
	2024					2023
	Avg wtd grant-					Avg wtd grant-
	date fair value		Units			date fair value		Units
Unvested at beginning of period	$	30.39		853,748		$	25.38		1,153,515
Granted		41.41		527,640			30.09		513,715
Vested		30.69		(448,735	)		22.83		(773,507	)
Forfeited		34.85		(13,703	)		29.60		(45,153	)
Unvested at end of period	$	36.51		918,950		$	30.30		848,570

Share-Based Compensation Expense

The Company recorded $3.7 million and $3.9 million of share-based compensation expense in the three months ended September 30, 2024 and 2023, respectively, and $11.4 million and $12.4 million of share-based compensation expense in

the nine months ended September 30, 2024 and 2023, respectively. Share-based compensation expense is recorded in personnel compensation and benefits in the unaudited Condensed Consolidated Statements of Operations.