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Equity Incentive Plans | 12 Months Ended
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Dec. 31, 2024
Share-Based Payment Arrangement [Abstract] |
Equity Incentive Plans | 15. EQUITY INCENTIVE PLANS In May 2004, the Company adopted its 2004 Equity Incentive Plan (“2004 Plan”), which replaced its 2000 Omnibus Equity Incentive Plan (“2000 Plan”). The 2000 Plan had allowed for the award of up to 11,500,000 shares of Class A common stock. The 2004 Plan, as originally adopted, allowed for the award of up to 10,000,000 shares of Class A common stock, plus any grants remaining available at its adoption date under the 2000 Plan. Awards under the 2004 Plan may be in the form of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, RSUs or PSUs. The 2004 Plan is administered by a committee appointed by the Board of Directors. This committee determines the type, number, vesting requirements and other features and conditions of such awards. The 2004 Plan was amended by the Compensation Committee effective July 13, 2006 to (i) eliminate automatic option grants for non-employee directors, making any grants to such directors discretionary by the Compensation Committee and (ii) eliminate the three-year minimum vesting period for performance-based restricted stock and restricted stock units, making the vesting period for such grants discretionary by the Compensation Committee. The 2004 Plan was further amended by the Board of Directors on April 28, 2014, and approved by the stockholders at the 2014 annual meeting of stockholders on May 29, 2014, to extend the term of the 2004 Plan until May 29, 2024. The 2004 Plan was further amended by the Board of Directors effective April 29, 2021, and approved by the stockholders at the 2021 annual meeting of stockholders on May 27, 2021, to increase the number of shares of Class A common stock issuable under the 2004 Plan by 8,000,000 shares, for a total of 18,000,000 shares issuable thereunder. The 2004 Plan was further amended by the Board of Directors effective April 16, 2024, and approved by the stockholders at the 2024 annual meeting of stockholders on May 30, 2024, t o increase the number of shares of Class A common stock issuable under the 2004 Plan by 7,500,000 shares, for a total of 25,500,000 shares issuable thereunder. In June 2023, the Company adopted its 2023 Inducement Plan (“Inducement Plan”), reserving 2,000,000 shares of the Company’s Class A common stock to be used exclusively for grants of equity-based awards to individuals who were not previously employees of the Company, as an inducement material to the individual’s employment with the Company. The terms and conditions of the Inducement Plan are substantially similar to the Company's 2004 Plan. The Company granted the following awards to Michael Christenson in July 2023 upon his being hired as CEO: (i) an initial one-time award of 1,000,000 RSUs and (ii) an initial one-time award of 1,000,000 PSUs. The Company has issued stock options, RSUs and PSUs to various other employees and non-employee directors of the Company in addition to non-employee service providers under the Company's equity incentive plans. As of December 31, 2024, there were approximate ly 10.5 million se curities remaining available for future issuance under equity compensation plans. Stock Options The fair value of each stock option is estimated on the date of grant using the Black-Scholes option pricing model. Stock-based compensation expense related to stock options is based on the fair value on the date of grant and is amortized over the vesting period, generally between 1 to 4 years. Expected volatilities are based on historical volatility of the Company’s stock. The Company uses historical data to estimate option exercise and employee termination within the valuation model. The expected term of stock options granted is based on historical contractual life and the vesting data of the stock options. The risk-free rate for periods within the contractual life of the stock option is based on the U.S. Treasury yield curve in effect at the time of grant. There were no stock options granted during the years ended December 31, 2024, 2023, and 2022. The following is a summary of stock option activity: (in thousands, except exercise price data and contractual life data):
Options |  | Number of Shares |  |  | Weighted-Average Exercise Price |  |  | Weighted-Average Remaining Contractual Life (Years) |  |  | Aggregate Intrinsic Value |
Outstanding at December 31, 2021 |  |  | 351 |  |  | $ | 2.28 |  |  |  | 0.99 |  |  | $ | 1,577 |
Exercised |  |  | (91 | ) |  |  | 1.71 |  |  |  |  |  |  | 381 |
Forfeited or cancelled |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Outstanding at December 31, 2022 |  |  | 260 |  |  |  | 2.48 |  |  |  | 0.19 |  |  |  | 605 |
Exercised |  |  | (260 | ) |  |  | 2.48 |  |  |  | - |  |  |  | 933 |
Forfeited or cancelled |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Outstanding at December 31, 2023 |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Exercised |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Forfeited or cancelled |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Outstanding at December 31, 2024 |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Vested and Exercisable at December 31, 2024 |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
There was no stock-based compensation expense related to the Company’s employee stock options for the years ended December 31, 2024, 2023 and 2022. Restricted Stock Units The Company measures all stock-based awards using a fair value method and recognizes the related stock-based compensation expense in the consolidated financial statements over the requisite service period. As stock-based compensation expense recognized in the Company’s consolidated financial statements is based on awards ultimately expected to vest, generally between 1 to 4 years, it has been reduced for estimated forfeitures. The following is a summary of non-vested RSUs activity: (in thousands, except grant date fair value data):
|  | Number of Shares |  |  | Weighted-Average Grant Date Fair Value |
Nonvested balance at December 31, 2021 |  |  | 4,530 |  |  | $ | 5.00 |
Granted |  |  | 3,555 |  |  |  | 5.43 |
Vested |  |  | (3,491 | ) |  |  | 5.10 |
Forfeited or cancelled |  |  | (151 | ) |  |  | 5.35 |
Nonvested balance at December 31, 2022 |  |  | 4,443 |  |  |  | 5.26 |
Granted |  |  | 4,869 |  |  |  | 6.06 |
Vested |  |  | (2,686 | ) |  |  | 5.49 |
Forfeited or cancelled |  |  | (269 | ) |  |  | 6.17 |
Nonvested balance at December 31, 2023 |  |  | 6,357 |  |  |  | 5.74 |
Granted |  |  | 2,929 |  |  |  | 4.01 |
Vested |  |  | (2,621 | ) |  |  | 5.94 |
Forfeited or cancelled |  |  | (2,080 | ) |  |  | 5.47 |
Nonvested balance at December 31, 2024 |  |  | 4,585 |  |  |  | 4.62 |
Stock-based compensation expense related to grants of RSUs was $12.3 million, $23.0 million and $20.0 million for the years ended December 31, 2024, 2023 and 2022, respectively. As of December 31, 2024, there was approximately $7.6 million of total unrecognized compensation expense related to grants of RSUs that is expected to be recognized over a weighted-average period of 1.8 years. The fair value of shares vested related to grants of RSUs was $17.3 million, $14.0 million, and $18.1 million for the years ended December 31, 2024, 2023 and 2022, respectively. The Company’s RSUs are net settled by withholding shares of the Company’s common stock to cover minimum statutory incomes taxes and remitting the remaining shares of the Company’s common stock to an individual’s brokerage account. Authorized shares of the Company’s common stock are used to settle RSUs. Performance Stock Units In connection with the hiring of the Company's CEO in July 2023, the Company granted the CEO Performance Stock Units ("PSUs"), which are subject to both time-based vesting and market-based conditions. Both the service and market conditions must be satisfied for the PSUs to vest. The PSUs consist of five equal tranches (each, a "Performance Tranche"), based on achievement of a share price condition if the Company achieves share price targets of $5.75, $7.25, $9.00, $11.20, and $13.75, respectively, over 30 consecutive trading days during a performance period commencing on July 1, 2023 and ending on July 1, 2028. The fair value of each of the Performance Tranches was $0.8 million, $0.7 million, $0.7 million, $0.6 million, and $0.5 million, respectively, and have a grant date fair value per share of restricted stock of $3.98, $3.64, $3.31, $2.93, and $2.58, respectively. To the extent that any of the performance-based requirements are met, the Company's CEO must also provide continued service to the Company through at least July 1, 2024 to receive any shares of common stock underlying the PSUs and through July 1, 2028 to receive all of the shares of common stock underlying the PSUs that have satisfied the applicable market-based requirement. The maximum number of shares that can be earned under this PSU grant is 1,000,000 shares, with 20% of the total award allocated to each Performance Tranche. Between 0% and 100% of each Performance Tranche of the PSUs will vest on each of the tranche dates. Additionally, in connection with the annual grant in January 2024, the Company has granted PSUs to certain senior employees, which PSUs are subject to both time-based vesting conditions and market-based conditions. Both the service and market conditions must be satisfied for the PSUs to vest. The PSUs consist of four equal tranches (each, a "Performance Tranche"), based on achievement of a share price condition if the Company achieves share price targets of $4.83, $5.65, $7.15, and $8.90, respectively, over 30 consecutive trading days during a performance period commencing on January 25, 2024 and ending on January 25, 2029. The fair value of each of the Performance Tranches was $0.6 million, $0.6 million, $0.5 million, and $0.5 million, respectively, and have a grant date fair value per share of restricted stock of $4.16, $3.98, $3.66, and $3.32, respectively. To the extent that any of the performance-based requirements are met, the grantees must also provide continued service to the Company through at least January 25, 2025 to receive any shares of common stock underlying the PSUs and through January 25, 2029 to receive all of the shares of common stock underl ying the PSUs that have satisfied the applicable market-based requirement. The maximum number of shares that could be earned under this PSU grant was 600,000 sha res, with 25% of th e total award allocated to each Performance Tranche. Between 0% and 100% of each Performance Tranche of the PSUs will vest on each of the tranche dates. D uring 2024, 400,000 of these PSUs were cancelled. The Company recognizes compensation expense related to the PSUs using the accelerated attribution method over the requisite service period. Stock-based compensation expense for PSUs is based on a performance measurement of 100%. The compensation expense will not be reversed even if the performance metrics are not met. Stock-based compensation expense related to PSUs was $1.5 million and $0.7 million for the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024, there w as $1.7 million of total unrecognized compensation expense related to grants of PSUs that is expected to be recognized over a weighted-average period of 2.2 years. The grant date fair value for each PSU was estimated using a Monte Carlo simulation model that incorporates option-pricing inputs covering the period from the grant date through the end of the performance period. The unobservable significant inputs to the valuation model at the time of award issuance were as follows:
|  | 2024 PSUs |  |  | 2023 PSUs |
Stock price at issuance |  | $ | 4.38 |  |  | $ | 4.39 |
Expected volatility |  |  | 57.0 | % |  |  | 58.0 | %
Risk-free interest rate |  |  | 4.01 | % |  |  | 4.13 | %
Expected term |  |  | 5.0 |  |  |  | 5.0 |
Expected dividend yield |  |  | 0 | % |  |  | 0 | %
The following is a summary of non-vested PSUs activity: (in thousands, except grant date fair value data):
|  | Number of PSUs |  |  | Weighted-Average Grant Date Fair Value |
Nonvested balance at December 31, 2022 |  |  | - |  |  | $ | - |
Granted |  |  | 1,000 |  |  |  | 3.29 |
Vested |  |  | - |  |  |  | - |
Forfeited or cancelled |  |  | - |  |  |  | - |
Nonvested balance at December 31, 2023 |  |  | 1,000 |  |  |  | 3.29 |
Granted |  |  | 600 |  |  |  | 3.78 |
Vested |  |  | - |  |  |  | - |
Forfeited or cancelled |  |  | (400 | ) |  |  | 3.78 |
Nonvested balance at December 31, 2024 |  |  | 1,200 |  |  |  | 3.37 |

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