5. EQUITY COMPENSATION PLANS

The Company’s 2021 and 2018 Equity Compensation Plans (the “2021 Plan” and the “2018 Plan,” respectively) provide for the grant of stock-based compensation awards to members of management, including employees and management officials, and members of the Board. Under the 2021 Plan, a total of 427,500 shares of the Company’s common stock or equivalents were approved for issuance, of which 156,408 shares remain available for issuance at March 31, 2025. Of the total 346,000 shares of common stock approved for issuance under the 2018 Plan, 1,045 shares remain available for issuance at March 31, 2025.

Stock Options

Stock options are granted with an exercise price equal to the fair market value of the Company’s common stock at the date of grant, and generally with vesting periods of three years and contractual terms of ten years. All stock options fully vest upon a change in control.

The fair value of stock options is estimated on the date of grant using a closed form option valuation (Black-Scholes) model. Expected volatilities are based on historical volatilities of the common stock of the Company’s peers. The Company uses historical data to estimate option exercise and post-vesting termination behavior. Expected terms are based on historical data and represent the periods in which the options are expected to be outstanding. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant.

There were 42,000 stock options exercised resulting in the net issuance (after netting the value of the exercise price and/or certain tax liabilities) of 14,332 shares of common stock during the three months ended March 31, 2025. There were 8,139 stock options exercised resulting in the net issuance of 3,201 shares of common stock during the three months ended March 31, 2024.

A summary of stock option activity follows (aggregate intrinsic value in thousands):

The following table presents information related to the stock option plan for the periods presented:

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There was no compensation expense attributable to stock options for the three months ended March 31, 2025 and 2024.

Restricted Stock Awards

During the three months ended March 31, 2025 and 2024, restricted stock awards of 49,750 shares and 54,411 shares, respectively, were granted with a five-year vesting period. Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at issue date.

A summary of restricted stock awards activity follows:

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Compensation expense attributable to restricted stock awards was $348 thousand and $325 thousand for the three months ended March 31, 2025 and 2024, respectively. As of March 31, 2025 and December 31, 2024, there was $4.0 million and $3.1 million of total unrealized compensation cost related to unvested restricted stock, expected to be recognized over a weighted-average term of 3.46 years and 3.00 years, respectively. The total fair value of shares vested during the three months ended March 31, 2025 and 2024 was $1.8 million and $1.1 million, respectively.

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Restricted Stock Units

Long Term Incentive Plan

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Restricted stock units (“RSU”s) represent an obligation to deliver shares to a grantee at a future date if certain vesting conditions are met. RSUs are subject to a time-based vesting schedule and the satisfaction of performance conditions and are settled in shares of the Company's common stock. RSUs do not provide voting rights and RSUs may accrue dividends from the date of grant.

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The following table summarizes the unvested performance-based RSU activity for the three months ended March 31, 2025:

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During the three months ended March 31, 2025, the Company granted 22,345 RSUs. These performance-based RSUs cliff vest after three years and are subject to the achievement of the Company's pre-defined performance goals for the three-year period ending December 31, 2027.

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Compensation expense attributable to RSUs was $146 thousand and $56 thousand, respectively, for the three months ended March 31, 2025 and 2024. As of March 31, 2025 and December 31, 2024, there was $567 thousand and $31 thousand of total unrecognized compensation cost related to non-vested RSUs.