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STOCKHOLDERS' EQUITY | 12 Months Ended
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Dec. 31, 2024
Share-Based Payment Arrangement [Abstract] |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY Stock-Based Compensation The Company has a shareholder-approved stock incentive plan (as amended, the “Plan”) allowing for the issuance of restricted stock units (“RSUs”), stock options (“Options”), performance-based restricted stock units (“PSUs”), performance stock options (“Performance Options”), and other equity awards (collectively, “Awards”). As of December 31, 2024, there were 3,291,461 shares of Class B common stock that had been authorized for issuance under the Plan, of which 530,000 shares remained available for future issuance. RSUs and Options generally vest based on continued service by the recipient of the Award to the Company over a period of up to three years. Options generally expire ten years after the grant date. Stock-based compensation expense was as follows:
($ in millions) | 2024 |  | 2023
Restricted stock units | $ | 3.9 |  |  | $ | 12.0 |
Performance Options | 0.7 |  |  | —
Total stock-based compensation | $ | 4.6 |  |  | $ | 12.0 |
Unamortized stock-based compensation expense as of December 31, 2024 and its amortization period follows:
($ in millions) | Unamortized Expense for Outstanding Awards |  | Weighted-Average Amortization Period (in years)
Restricted stock units | $ | 2.3 |  |  | 1.6
Performance Options(1) | 2.8 |  |  | 3.8
Total unrecognized stock-based compensation expense | $ | 5.1 |  |  | 2.8
(1) Forfeited as of January 13, 2025, due to the resignation of our CEO. Restricted Stock Units RSU activity, including PSUs, was as follows:
| Number of RSUs |  | Weighted -Average Grant Date Fair Value
Unvested at December 31, 2023 | 394,161 |  | $ | 14.82 |
Granted | 743,418 |  | 4.39 |
Vested | (258,635) |  | 15.27 |
Forfeited | (231,389) |  | 6.61 |
Unvested at December 31, 2024 | 647,555 |  | $ | 4.94 |
Valuation of PSUs and Performance Options with Stock Performance Hurdles The assumptions used to estimate the fair value of grants with market performance hurdles, which were in the form of PSUs in 2024 and Performance Options in 2023 were as follows:
| 2024 |  | 2023
Exercise price | — |  | $5.85
Stock price hurdles for vesting(1) | $12.00 to $22.00 |  | $12.00 to $40.00
Fair value price per share | $3.91 |  | $4.35
Volatility | 90.0% |  | 95.0%
Expected term (years) | 3.0 |  | 9.9
Risk-free interest rate | 4.4% |  | 4.1%
Dividend yield | — |  | —
(1) In order for the award to vest, the value of Class B common stock must reach and remain at or above the threshold price for a period of 30 days (in addition to recipient remaining an employee). The following is a summary of the Options (including Performance Options) activity:
| Number of Options |  | Weighted Average Exercise Price |  | Weighted-Average Remaining Contractual Life (in years) |  | Aggregate Intrinsic Value ($ in millions)
Outstanding at December 31, 2023 | 825,801 |  | $ | 5.92 |  |  | 9.8 |  | $ | — |
Options granted | — |  | — |  |  | — |  |  | — |
Options exercised | — |  | — |  |  | — |  |  | — |
Options forfeited or expired | (476) |  | 81.60 |  |  | — |  |  | — |
Outstanding at December 31, 2024 | 825,325 |  | $ | 5.88 |  |  | 9.0 |  | $ | — |
Vested / exercisable at December 31, 2024 | 325 |  | $ | 81.60 |  |  | 4.6 |  | $ | — |
Unvested as of December 31, 2024 | 825,000 |  | $ | 5.85 |  |  | 9.0 |  | $ | — |
No stock options were exercised during 2024 or 2023. The 825,000 Performance Options unvested as of the end of 2024 were forfeited effective January 13, 2025 due to the resignation of our former Chief Executive Officer (“CEO”). 2024 Rights Offering The Company commenced a $10.0 million rights offering on November 26, 2024 that expired on December 12, 2024. To effect this rights offering, the Company’s existing shareholders were granted a dividend of subscription rights to purchase a designated number of shares of Class B common stock at a price of $4.18 per share. Pursuant to the terms of a standby purchase agreement with related party Stone House Capital Management, LLC, a Delaware limited liability company (“Stone House”), Stone House acquired $1.5 million of Class B common stock that had not been purchased by other existing shareholders. Net proceeds after costs incurred to effect the rights offering were $9.1 million. These net proceeds reflect $0.7 million of costs that were accrued and not yet paid as of December 31, 2024. The transaction resulted in the issuance of 2.4 million new shares of Class B common stock. The Company used cash proceeds from this rights offering on January 2, 2025 to pay a portion of the amount due under the 6.75% convertible senior notes. 2023 Rights Offering The Company commenced a $100.0 million rights offering on November 13, 2023 that expired on December 5, 2023. as extended by the Company. To effect this rights offering, the Company’s existing shareholders were granted a dividend of subscription rights to purchase a designated number of shares of Class B common stock at a price of $5.50 per share. Pursuant to the terms of a standby purchase agreement with related parties Mark Tkach, William Coulter and StoneHouse and collectively, the “Standby Purchasers”, the Standby Purchasers acquired $18.9 million of Class B common stock that had not been purchased by other existing shareholders. Net proceeds after expenses incurred to effect the rights offering were $98.4 million, of which the Company used $50.0 million to pay down a portion of the outstanding term loan indebtedness under the Credit Agreement. The transaction resulted in the issuance of 18.2 million new shares of Class B common stock. Common Stock Warrants In 2023, the Company issued warrants to Oaktree and the lenders party to the Credit Agreement to purchase up to 1.2 million shares of Class B common stock at an exercise price of $12.00, which is subject to adjustment based on the terms of the Credit Agreement. The exercise price for these warrants was $11.09 and $11.25 as of December 31, 2024 and 2023, respectively. Such warrants are exercisable for up to five years following the date of issuance. These warrants were classified as equity. Preferred Stock The Company has authorized 10 million shares of $0.001 par value preferred stock, with none issued or outstanding as of December 31, 2024 or 2023.

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- Definition The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 505 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/505/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent + Details
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