8. Stock Incentive Plan

Restricted Stock Units

On August 1, 2025, the Company granted 113,847 time-based RSUs with a grant date fair value of $25.19 to certain senior-level employees pursuant to the Company’s Incentive Plan. Each RSU represents the right to receive a share of our common stock upon vesting. These RSUs vest in three equal annual amounts on each anniversary of August 1, 2025, subject to continued employment through the applicable vesting date.

In fiscal 2024, our Board of Directors approved grants of 600,000 RSUs to certain officers of the Company, pursuant to the Company’s Incentive Plan and the RSU award agreements. Certain of these RSUs are subject to time-based vesting and certain RSUs are subject to performance-based vesting contingent upon the achievement of certain stock price targets.

The fair value of time-based RSUs is equal to the closing market price of the underlying common stock on the grant date, less the present value of expected dividends over the vesting period. A Monte Carlo simulation model was used to determine the grant date fair value of the performance-based RSUs. We recognize stock-based compensation expense for the RSUs on a straight-line basis over the vesting periods.

Stock-based compensation expense related to the RSUs was $411 and $179 for the three months ended March 31, 2026 and 2025 and $1,184 and $538 for the nine months ended March 31, 2026 and 2025, respectively. As of March 31, 2026, there was $3,699 of unrecognized compensation expense related to the RSUs, which will be recognized over a weighted average period of 2.6 years. During the nine months ended March 31, 2026 and 2025, 31,108 and 30,000 time-based RSUs vested, respectively, and the fair value of these vested RSUs was $1,600 and $711, respectively. There were no excess tax benefits recognized on the vesting of these RSUs. As of March 31, 2026, 650,524 RSUs with a weighted average grant date fair value of $8.35 remain unvested.