Simultaneously with the IPO, ER Holdings recapitalized its outstanding Compensatory Units held by the Continuing Profits Interest Unitholders into Class M membership interests in ER Holdings.

Compensation expense recorded for the Restricted Compensatory Units for the three months ended June 30, 2026 and 2025 was $2.5 million and $1.1 million, respectively. Compensation expense recorded for the Restricted Compensatory Units for the six months ended June 30, 2026 and 2025 was $3.7 million and $2.6 million, respectively. The following table summarizes information related to nonvoting Restricted Compensatory Units currently held by employees and directors for the period presented:


Period	Number of Restricted Compensatory Units			Weighted Average Grant Date Fair Value
Unvested, December 31, 2025		82,899		$	223.09
Vested		(6,215	)		130.50
Forfeited		(261	)		450.65
Unvested, March 31, 2026		76,423		$	230.02
Granted		1,037,252			17.92
Vested		(7,808	)		213.05
Forfeited		(2,880	)		86.95
Unvested, June 30, 2026		1,102,987		$	31.05

The Restricted Compensatory Units issued to employees were valued at approximately $18.6 million for the three and six months ended June 30, 2026. The Restricted Compensatory Units issued to employees were valued at approximately $0.2 million and $0.7 million for the three and six months ended June 30, 2025. The Restricted Compensatory Units vest generally over time in accordance with the terms of the applicable grant agreements, between one month to six years. Time-based awards are classified as equity awards and compensation expense included in the unaudited condensed consolidated statements of operations is recognized ratably as over the requisite service period.

For the three and six months ended June 30, 2026, the Company granted 83,954 Restricted Compensatory Units to its Chief Executive Officer and other executive officers. For the three and six months ended June 30, 2025. The Company granted 2,323 Restricted Compensatory Units to its Chief Executive Officer and other executive officers.

For the three and six months ended June 30, 2026, the Company recognized $1.0 million compensation expense related to accelerated vesting of performance conditions in connection with the IPO.

As of June 30, 2026, unrecognized compensation cost for all outstanding compensatory units was $31.9 million, which is expected to be recognized over a weighted-average period of 2.4 years.