Share-Based Compensation Expense

Stock-based compensation expense for stock options and restricted stock units for each of the three months ended March 31, 2025 and 2024 was $0.8 million. As of March 31, 2025, there was $6.3 million of unrecognized compensation cost related to stock options and restricted stock units which is expected to be recognized over the remaining vesting periods, with a weighted-average period of 2.4 years.

The Company grants stock options to certain employees that will vest over a period of one to four years. A summary of stock option award activity for the three months ended March 31, 2025 was as follows:


Options	Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term
Outstanding at December 31, 2024	488,385	$	9.34	7.5
Granted	—	—
Exercised	—	—
Cancelled or forfeited	—	—
Outstanding at March 31, 2025	488,385	$	9.34	7.3
Exercisable at March 31, 2025	192,985	$	17.86	4.5

The aggregate intrinsic value of stock options outstanding as of March 31, 2025 was $0.1 million. There were no stock options granted during the three months ended March 31, 2025.

A summary of stock option award activity for the three months ended March 31, 2024 was as follows:


Options	Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term
Outstanding at December 31, 2023	193,156	$	17.89	5.8
Granted	—	—
Exercised	—	—
Cancelled or forfeited	—	—
Outstanding at March 31, 2024	193,156	$	17.89	5.5
Exercisable at March 31, 2024	191,931	$	17.58	5.5

The aggregate intrinsic value of stock options outstanding as of March 31, 2024 was $0.2 million. There were no stock options granted during the three months ended March 31, 2024.

Restricted Stock Units

The Company grants restricted stock units to certain employees that will generally vest over a period of four years. The fair value of restricted stock unit awards is estimated by the fair value of the Company’s common stock at the date of grant. Restricted stock units activity during the three months ended March 31, 2025 was as follows:


	Number of Shares	Weighted Average Grant Date Fair Value Per Share
Non-vested, at December 31, 2024	2,233,816	$	4.60
Granted	—	—
Vested	(28,732)	5.92
Cancelled or forfeited	(153,945)	3.13
Non-vested, at March 31, 2025	2,051,139	$	4.69

Restricted stock units activity during the three months ended March 31, 2024 was as follows:


	Number of Shares	Weighted Average Grant Date Fair Value Per Share
Non-vested, at December 31, 2023	1,102,095	$	7.74
Granted	—	—
Vested	(5,060)	9.36
Cancelled or forfeited	(813)	6.64
Non-vested, at March 31, 2024	1,096,222	$	7.74

Former CEO's Ladder Restricted Stock Unit Award

In 2022, the Company granted its former president and chief executive officer (“Former CEO”) a restricted stock unit award of 208,333 shares of common stock (the “Ladder RSUs”). The Ladder RSUs were to vest in 10% increments on the dates the plan administrator certified the applicable milestone stock prices had been achieved or exceeded, provided that the Former CEO remained employed on the date of certification and such achievement occurred within ten years of the date of the grant. The Company used a Monte Carlo simulation valuation model to determine the fair value of the award as of the grant date, which was accounted for as a liability until the separation of the Former CEO effective April 12, 2024. The following inputs were used in the simulation: grant date stock price of $9.36 per share, annual volatility of 85.0%, risk-free interest rate of 3.3% and dividend yield of 0.0%. For each tranche, a fair value was calculated as well as a derived service period which represents the median number of years it is expected to take for the Ladder RSUs to meet their corresponding milestone stock price excluding the simulation paths that result in the Ladder RSUs not vesting within the 10-year term of the agreement. Each tranche's fair value would have been amortized ratably over the respective derived service period.