The Company currently has outstanding stock-based awards granted under the Plan which is currently active and available for future grants. At March 31, 2025, there were 691,596 shares available for grant.

Stock options granted and outstanding under the incentive plan vest over a period of four years and are exercisable over the contractual term of ten years.

A summary of the stock option activity for the three months ended March 31, 2025 and 2024 is as follows (option amounts not in thousands):


					Weighted
			Weighted		Average
			Average		Remaining	Aggregate
	Number of		Exercise		Contractual	Intrinsic
	Options		Price		Term	Value
Outstanding at January 1, 2025		590,000	$	51.54	4.9 years	$	37,523
Outstanding at March 31, 2025		590,000	$	51.54	4.6 years	$	58,367
Exercisable at March 31, 2025		590,000	$	51.54	4.6 years	$	58,367

Outstanding at January 1, 2024		590,000	$	51.54	5.9 years	$	21,156
Outstanding at March 31, 2024		590,000	$	51.54	5.6 years	$	38,077
Exercisable at March 31, 2024		590,000	$	51.54	5.6 years	$	38,077

There were no options exercised during the three months ended March 31, 2025 and 2024. For the three months ended March 31, 2025 and 2024, the Company recognized $0 and $14, respectively, of compensation expense related to stock options which is included in general and administrative personnel expenses. There were no deferred tax benefits related to stock options recognized for the three months ended March 31, 2025 and 2024. At March 31, 2025 and December 31, 2024, there was no unrecognized compensation expense related to nonvested stock options.

From time to time, the Company has granted and may grant restricted stock awards to certain executive officers, other employees, and non-employee directors in connection with their service to the Company. The terms of the Company’s outstanding restricted stock grants may include service, performance, and market-based conditions. The determination of fair value with respect to the awards containing only service-based conditions is based on the market value of the Company’s common stock on the grant date. For awards with market-based conditions, the fair value is determined using a Monte Carlo simulation method, which calculates many potential outcomes for an award and then establishes fair value based on the most likely outcome.

Information with respect to the activity of unvested restricted stock awards during the three months ended March 31, 2025 and 2024 is as follows:


	Number of			Weighted
	Restricted			Average
	Stock			Grant Date
	Awards			Fair Value
Nonvested at January 1, 2025		486,115		$	63.00
Granted		1,000		$	138.94
Vested		(18,405	)	$	61.38
Forfeited		(750	)	$	109.72
Nonvested at March 31, 2025		467,960		$	63.15

Nonvested at January 1, 2024		271,417		$	37.12
Vested		(29,690	)	$	56.05
Forfeited		(200	)	$	51.87
Nonvested at March 31, 2024		241,527		$	34.78

The Company recognized compensation expense related to restricted stock, which is included in general and administrative personnel expenses, of $2,249 and $867 for the three months ended March 31, 2025 and 2024, respectively. At March 31, 2025 and December 31, 2024, there was approximately $18,083 and $20,296, respectively, of total unrecognized compensation expense related to nonvested restricted stock arrangements. The Company expects to recognize the remaining compensation expense over a weighted-average period of 2.7 years. The following table summarizes information about deferred tax benefits recognized and tax benefits realized related to restricted stock awards and paid dividends, and the fair value of vested restricted stock for the three months ended March 31, 2025 and 2024.


	Three Months Ended
	March 31,
	2025		2024
Deferred tax benefits recognized	$	201	$	99
Tax benefits realized for restricted stock and paid dividends	$	608	$	511
Fair value of vested restricted stock	$	1,130	$	1,664

For the three months ended March 31, 2025 and 2024, Exzeo Group recognized compensation expense related to its stock-based awards of $703 and $701, respectively. At March 31, 2025 and December 31, 2024, there was $8,491 and $9,495, respectively, of unrecognized compensation expense related to nonvested subsidiary restricted stock and stock options.