Stock-Based Compensation

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-Based Compensation

The Human Resources and Compensation Committee of our Board of Directors granted 3,114,328 RSUs and 1,353,661 performance-based restricted stock units (“PSUs”) to our employees during the first quarter of 2024 under our Omnibus Equity Incentive Plan. Our electing non-employee directors received 66,188 deferred share units (“DSUs”) during the three months ended March 31, 2024 under our Omnibus Equity Incentive Plan.

We measure the fair value of grants of RSUs and DSUs based on the closing market price of a share of our common stock on the date of the grant. The weighted average fair value per share was $1.87 for RSUs granted to employees and $1.38 for DSUs granted to non-employee directors during the three months ended March 31, 2024.

We measure the fair value of grants of PSUs using a monte carlo valuation. The weighted average fair value of the PSUs granted in the first quarter of 2024 was $1.14 per share and will be expensed over a vesting period of three years. The final payout to holders of PSUs will be based upon the Company’s total shareholder return relative to a peer group’s performance measured at the end of each performance period. The final payout for PSUs granted in 2024 is subject to a 3.5x value cap.

In the three months ended March 31, 2024 and 2023, we recognized $1.0 million and $0.8 million, respectively, of stock-based compensation expense. The majority of the expense, $0.9 million and $0.7 million, respectively, was recorded in selling and administrative expense in the Condensed Consolidated Statements of Operations, with the remaining expense recorded in cost of goods sold.

As of March 31, 2024, the unrecognized compensation cost related to the unvested portion of all stock-based awards was approximately $14.7 million and is expected to be recognized over the remaining vesting period of the respective grants.