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STOCK-BASED COMPENSATION | 6 Months Ended
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Jun. 30, 2024
Share-Based Payment Arrangement [Abstract] |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. The fair value is recognized in earnings over the period during which an employee is required to provide the service. The Company accounts for forfeitures as they occur. In October 2020, the Company’s Board of Directors adopted the CuriosityStream 2020 Omnibus Plan (the “2020 Plan”). The 2020 Plan became effective upon consummation of the Business Combination and succeeds the Legacy CuriosityStream Stock Option Plan. Upon adoption of the 2020 Plan, a total of 7,725,000 shares were approved to be issued as stock options, share appreciation rights, restricted stock units and restricted stock. The following table summarizes stock option and RSU activity, prices, and values for the six months ended June 30, 2024:
| Number of Shares Available for Issuance Under the Plan |  | Stock Options |  | Restricted Stock Units
(in thousands except share price and fair value amounts) |  | Number of Shares |  | Weighted- Average Exercise Price |  | Number of Shares |  | Weighted- Average Grant Date Fair Value
Balance at December 31, 2023 | 4,762 |  | 32 |  | $ | 5.79 |  |  | 2,058 |  | $ | 2.57 |
Granted | (4,024) |  | — |  | — |  |  | 4,024 |  | 1.15 |
RSUs vested | 72 |  | — |  | — |  |  | (551) |  | 1.63 |
Forfeited or expired | 177 |  | (3) |  | 11.60 |  |  | (174) |  | 1.59 |
Balance at June 30, 2024 | 987 |  | 29 |  | $ | 5.50 |  |  | 5,357 |  | $ | 1.47 |
There were no options exercised during the three and six months ended June 30, 2024, and 2023. Stock options and RSU awards generally vest on a monthly, quarterly, or annual basis over a period of one to four years from the grant date. When options are exercised, the Company issues previously unissued shares of Common Stock to satisfy share option exercises. Upon vesting and distribution of RSUs, the Company issues previously unissued shares of Common Stock to satisfy RSUs vested, net of shares withheld for taxes if elected by the RSU holder. The fair value of stock option awards is estimated using the Black-Scholes option pricing model, which includes a number of assumptions including the Company’s estimates of stock price volatility, employee stock option exercise behaviors, future dividend payments, and risk-free interest rates. The expected term of options granted is the estimated period of time from the beginning of the vesting period to the date of expected exercise or other settlement, based on historical exercises and post-vesting terminations. The Company generally estimates expected term based on the midpoint between the vesting date and the end of the contractual term, also known as the simplified method, given the lack of historical exercise behavior. On April 28, 2023, the Company’s Board of Directors authorized, and on June 14, 2023, the Company’s shareholders approved, a stock option exchange program (the “Exchange”) that permitted certain current employees and executive officers to exchange certain outstanding stock options with exercise prices substantially above the current market price of the Company’s Common Stock for RSUs of an equivalent fair value. The Exchange was completed in July 2023. For options that had already vested at the time of the Exchange, the resulting RSUs vested in July 2024. Otherwise, the vesting schedules for unvested options at the time of the Exchange will remain the same for the resulting RSUs. As a result of the Exchange, 4.6 million of outstanding eligible stock options were exchanged for 1.6 million new RSUs, with a fair value of $0.99 per share on the date of the Exchange. There was no incremental compensation expense recorded by the Company as a result of the Exchange. The Company uses its own historical volatility as well as the historical volatility of similar public companies for estimating volatility. The risk-free interest rate is estimated using the rate of return on U.S. Treasury securities with maturities that approximate to the expected term of the option. For the three and six months ended June 30, 2024, and 2023, stock-based compensation expense was as follows:
(in thousands) | Three Months Ended June 30, |  | Six Months Ended June 30,
2024 |  | 2023 |  | 2024 |  | 2023
Stock-based compensation — Options | $ | 1 |  |  | $ | 771 |  |  | $ | 6 |  |  | $ | 1,548 |
Stock-based compensation — RSUs | $ | 1,324 |  |  | $ | 651 |  |  | $ | 2,008 |  |  | $ | 1,141 |
Total stock-based compensation | $ | 1,325 |  |  | $ | 1,422 |  |  | $ | 2,014 |  |  | $ | 2,689 |
Stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized on a straight-line basis over the requisite service period.

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