Note 12. Stock-Based Compensation

Incentive Award Plan

We are externally managed and do not currently have any employees. On March 30, 2016, we adopted the 2016 Incentive Award Plan (the “Plan”) to promote the success and enhance the value of the Company by linking the individual interests of employees of our Manager and its affiliates to those of our stockholders. In June 2026, the Plan was amended to increase the number of shares of common stock reserved for issuance under the Plan by 6.5 million shares. As of September 30, 2026, the maximum remaining number of shares that may be issued under the Plan is 7,168,701 shares. Subsequent thereto, we issued 17,561 deferred RSUs and 7,151,140 shares remain available under the Plan. Awards granted under the Plan may be granted with the right to receive dividend equivalents and generally vest in equal installments on the specified anniversaries of the grant.

Deferred Compensation Plan

On May 24, 2022, we adopted the Deferred Compensation Plan to provide our directors and certain executives with an opportunity to defer payment of their stock-based compensation or RSUs and director cash fees, if applicable, pursuant to the terms of the Deferred Compensation Plan.

Under our Deferred Compensation Plan, certain of our Board members elected to receive the annual fees and/or time-based RSUs to which they are entitled under our Non-Employee Director Compensation Program in the form of deferred RSUs. Accordingly, during the three months ended September 30, 2026 and 2025, we issued 8,744 and 18,008, respectively, of deferred RSUs in lieu of cash fees to such directors, and recognized an expense of approximately $21,000 and $53,000, respectively. During the nine months ended September 30, 2026 and 2025, we issued 58,414 and 43,611, respectively, of deferred RSUs in lieu of cash fees to such directors, and recognized an expense of approximately $118,000 and $159,000, respectively. Such expense is included in general and administrative expenses on our consolidated statements of operations.

Non-Employee Director Compensation Program

Our Board awards time-based RSUs to eligible non-employee Board members on an annual basis as part of such Board members’ annual compensation in accordance with the Non-Employee Director Compensation Program. The time-based awards are generally issued in the second quarter on the date of the annual meeting of our stockholders, in conjunction with the director’s election to our Board, and the awards vest on the earlier of (x) the one-year anniversary of the grant date and (y) the date of the next annual meeting of our stockholders following the grant date, subject to the applicable participants’ continued service through such vesting date.

Eligible non-executive members of our Board were granted the time-based RSUs under the Plan. Each RSU was granted with the right to receive dividend equivalents. Additionally, certain directors elected to defer their RSUs pursuant to the terms of the Deferred Compensation Plan. Such deferred awards will become payable on the earliest to occur of the participant’s separation from service or a change in control. On June 3, 2026, we granted 320,512 RSUs to non-executive board members with a grant date fair value per share of $2.34.

Stock-Based Compensation Expense

For the three months ended September 30, 2026 and 2025, we recognized $1.4 million and $2.1 million, respectively, of stock-based compensation expense related to the RSUs. For the nine months ended September 30, 2026 and 2025, we recognized $5.2 million and $11.9 million, respectively, of stock-based compensation expense related to the RSUs. As of September 30, 2026, total unrecognized compensation expense was $6.5 million based on the grant date fair value of RSUs granted. This expense is expected to be recognized over a remaining period of 1.6 years from September 30, 2026.

Certain participants of the Plan are required to settle their tax liabilities through a reduction of their vested RSU delivery. Such amount will result in a corresponding adjustment to additional paid-in capital and a cash payment to our Manager or its affiliates in order to remit the required statutory tax withholding to each respective taxing authority. The following table details the deliveries of shares of our common stock for vested RSUs and corresponding payments for withholding taxes upon delivery of such vested RSUs during the three and nine months ended September 30, 2026 and 2025, which are reflected as adjustments to additional paid-in capital on our consolidated statement of changes in equity ($ in thousands):