Share-Based Compensation

3 Months Ended

Mar. 31, 2023

Share-Based Compensation

Share-Based Compensation

8. Share-Based Compensation

Market and Performance-Contingent Awards

The Company periodically grants performance-contingent share-based awards to employees. For the three months ended March 31, 2023, the Company granted 165,000 restricted share units (“RSUs”) with a fair value of $1.4 million that vest upon the Company’s common stock meeting certain market-based price targets followed by a service period. The fair value of these market-based RSUs is being recognized through February 2027. For the three months ended March 31, 2023, the Company recognized $0.1 million of share-based compensation expense related to the awards.

For the three months ended March 31, 2023, the Company also granted 367,000 performance-contingent RSUs with a fair value of $3.7 million with performance vesting dates through February 2026. For the quarter ended March 31, 2023, the Company concluded that the achievement of these performance vesting criteria was not probable and no expense has been recognized related to these awards. However, if it were determined in a future period that achievement of these performance criteria is probable, the Company would recognize a cumulative catch-up of expense.