The Company accounts for share-based compensation expense for Incentive Units granted in exchange for employee services. Our management and employees currently participate in one equity-based incentive unit plan, managed by NDB LLC. The management incentive units consist of time-based awards of profits interest in NDB LLC (the “Incentive Units”), and the NDB LLC Agreement authorizes the issuance of 10,000 Incentive Units. On June 27, 2024, the Board of Managers of NDB LLC increased the total units authorized from 10,000 to 15,000 Incentive Units.

The weighted average fair value of the Incentive Units is estimated and remeasured using a Monte Carlo Simulation with the following inputs as of June 30:


	2024			2023
Estimated equity value	$	1,541,210		$	729,798
Expected life (in years)		1.7			1.0
Risk-free interest rate		4.7	%		5.3	%
Dividend yield		0	%		0	%
Volatility		40.0	%		25.0	%
Marketability discount	18.0% - 19.0%				19.0	%

The number of Incentive Units granted and forfeited during the six months ended June 30, 2024 and 2023 is shown in the following table:


	2024			2023
Outstanding at beginning of period		9,992			5,378
Granted		-			-
Forfeited		(54	)		(33	)
Outstanding at end of period		9,938			5,345

As of June 30, 2024 and 2023, the aggregate fair value of the Incentive Units attributable to the Company was $137.3 million ($13,948 - $13,662 per unit) and $22.7 million ($4,240 per unit), respectively.

Changes in the fair value of the Incentive Units as of June 30, 2024 and 2023 were as follows:


	2024		2023
Balance at beginning of period	$	35,873	$	46,827
Remeasurements		101,428		(24,164	)
Balance at end of period	$	137,301	$	22,663

The cumulative vested value of the Incentive Units allocated to the Company was $95.5 million as of June 30, 2024. For the three months ended June 30, 2024 and 2023, the Company recognized expense of $71.8 million and income of $28.7 million in share-based compensation, respectively, on the statements of operations. For the six months ended June 30, 2024 and 2023, the Company recognized expense of $72.6 million and income of $17.5 million in share-based compensation, respectively, on the statements of operations. As of June 30, 2024, the remaining unrecognized compensation expense for the Incentive Units was $41.8 million and the weighted average remaining vesting period was approximately 2.0 years.