STOCK-BASED COMPENSATION

Long-term Incentive Plan

The Company awards restricted stock units (“RSUs”) to executives, employees, and directors as part of the Company’s Long-Term Equity Compensation Incentive Plan (“Long-term Incentive Plan” or “LTIP”). This plan provides that equity-based awards, including RSUs, performance stock units (“PSU”), stock options, and unrestricted shares of common stock, may be granted to officers, employees, and directors of the Company. The Company has granted RSUs that provide the right to receive, subject to service based vesting conditions, shares of common stock pursuant to the Long-term Incentive Plan. The expense associated with these awards will be based on the fair value of the stock as of the grant date, where the Company elected to use the straight line recognition over the vesting period, which is three years. Under the approved Long-term Incentive Plan, generally, each RSU entitles the unit holder to one share of common stock when the restriction expires. After satisfying the above vesting conditions, the participants will be fully entitled to their shares of common stock. Shares that are issued upon vesting are newly issued shares from the Long-term Incentive Plan and are not issued from treasury stock. Forfeitures are recorded as they occur and are made available for subsequent awards.

The following table shows a summary of the unvested restricted stock under the Long-Term Incentive Plan as of March 31, 2026 as well as activity during the year:


	Number of shares	Weighted Average Grant Date Fair Value
Restricted stock units, unvested, December 31, 2025	4,460,325	$	7.36
Granted	1,362,152	8.65
Vested	(249,594)	8.58
Forfeited	(413,793)	5.32
Restricted stock units, unvested, March 31, 2026	5,159,090	$	7.80

After the approved amendment to the Long-Term Incentive Plan, 26,783 shares of common stock remained available for issuance.

Black-Scholes option-pricing model assumptions and the resulting fair value of options on grant date are presented in the following table:


	Stock Options on Grant Date
Dividend yield	—		%
Expected volatility	23.00		%
Risk-free interest rate	3.98		%
Expected option life	5.81 years
Weighted average fair value of stock options	$	3.91

At the time of the award, the Company did not intend to pay dividends for the foreseeable future. The expected volatility reflects the Company’s past daily common stock price volatility. The risk-free interest rate is derived using the term matched U.S. Treasury constant maturity yields. The expected stock option life is based on the average of the average time to vest and the remaining contractual term.

The following table shows the status of, and changes in, common stock options:


	Number of Stock Options	Weighted Average Exercise Price
Options outstanding, December 31, 2025	345,263	$	12.37
Granted	—	—
Exercised	—	—
Expired or cancelled	—	—
Options exercisable, March 31, 2026	345,263	$	12.37

Summary of Stock-Based Compensation Expense

Compensation costs recognized for RSUs and stock options were $6,343,401 and $2,355,395 for the three months ended March 31, 2026 and 2025, respectively.

For the three months ended March 31, 2026 and 2025, $671,669 and $485,319 of the compensation costs was recorded in cost of revenue (including stock-based compensation) in the consolidated statements of operations and comprehensive income, respectively. For the three months ended March 31, 2026 and 2025, $5,671,732 and $1,870,076 of the compensation costs is recorded in general and administrative expense (including stock-based compensation) in the consolidated statements of operations and comprehensive income, respectively.

As of March 31, 2026, there was approximately $31,823,238 of unrecognized compensation costs related to RSUs and stock options which the Company expects to recognize over the next 2.1 years.