The Company has a stockholder-approved stock incentive plan (as amended, the “Plan”) allowing for the issuance of restricted stock units (“RSUs”), stock options (“Options”), and other equity awards (collectively, “Awards”). As of December 31, 2025, there were 5,791,461 shares of Class B common stock that had been authorized for issuance under the Plan, of which 653,740 shares remained available for future issuance. RSUs and Options vest either based on continued service by the recipient of the Award to the Company over a period of up to three years or by achievement of a performance target. Options generally expire ten years after the grant date. Unamortized stock-based compensation expense as of December 31, 2025 was $3.6 million, which is expected to be amortized over a weighted-average period of 2.0 years.


	Number of RSUs	Weighted -Average Grant Date Fair Value




Unvested at December 31, 2024	647,555	$	4.94
Granted	2,599,382	1.90
Vested	(494,375)	3.92
Forfeited	(216,829)	3.05
Unvested at December 31, 2025	2,535,733	$	2.18


	2025	2024
Stock price hurdles for vesting(1)	$11.00 to $23.00	$12.00 to $22.00
Fair value price per share	$0.58	$3.91
Volatility	90.0%	90.0%
Expected term (years)	3.0	3.0
Risk-free interest rate	3.8%	4.4%
Dividend yield	—	—

(1) In order for the award to vest, the value of Class B common stock must reach and remain at or above the threshold price for a period of 20 days for the 2025 grants and 30 days for the 2024 grants (in addition to recipient remaining an employee and other terms of the grant agreements).


	Number of Options	Weighted Average Exercise Price		Weighted-Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value ($ in millions)




Outstanding at December 31, 2024	825,325	$	5.88	9.0	$	—
Options granted	—	—		—	—
Options exercised	—	—		—	—
Options forfeited or expired	(825,125)	5.85		—	—
Outstanding at December 31, 2025	200	$	81.60	3.6	$	—

Vested / exercisable at December 31, 2025	200	$	81.60	3.6	$	—
Unvested as of December 31, 2025	—	$	—	—	$	—

No stock options were exercised during 2025 or 2024. The 825,000 Performance Options unvested as of the end of 2024 were forfeited effective January 13, 2025 due to the resignation of our former Chief Executive Officer (“CEO”).

The Company commenced a $10.0 million rights offering on November 26, 2024 that expired on December 12, 2024. To effect this rights offering, the Company’s existing stockholders were granted a dividend of subscription rights to purchase a designated number of shares of Class B common stock at a price of $4.18 per share. Pursuant to the terms of a standby purchase agreement with related party Stone House Capital Management, LLC, a Delaware limited liability company (“Stone House”), Stone House acquired $1.5 million of Class B common stock that had not been purchased by other existing stockholders. Net proceeds after costs incurred to effect the rights offering were $9.1 million. These net proceeds reflect $0.7 million of costs that were accrued and not yet paid as of December 31, 2024. The transaction resulted in the issuance of 2.4 million new shares of Class B common stock. The Company used cash proceeds from this rights offering to pay a portion of the amount due under the 6.75% convertible senior notes on January 2, 2025.

In 2023, the Company issued warrants to Oaktree and the lenders party to the Credit Agreement to purchase up to 1.2 million shares of Class B common stock at an exercise price that was subject to adjustment based on the terms of the Credit Agreement (“Old Warrants”). The parties to the Credit Agreement executed Amendment No. 10 on August 10, 2025. As required by Amendment No. 10, the Company amended these warrants and extended their term to August 10, 2030 (“New Warrants”). The strike price of the New Warrants was set at $4.02 following the measurement period and is subject to certain adjustments as defined in the Credit Agreement. These warrants were classified as equity, and the incremental fair value of the New Warrants, which was recorded as additional paid-in capital, was determined to be $1.1 million higher than the Old Warrants using the Black-Scholes option pricing model with the following assumptions as of the valuation date:


	New Warrants		Old Warrants
Strike price	see note(1)		$	11.09
Stock price on valuation date	$	2.00	$	2.00
Volatility	90.0%		90.0%
Expected term (years)	5		3
Risk-free interest rate	3.9%		3.7%
Annual variance	81.0%		81.0%
Dividend yield	—		—

(1) The strike price for the new warrants was estimated using a Monte Carlo simulation, as the actual exercise price was not yet known as of the valuation date (i.e., the lesser of $11.09 or a 25% premium to the volume-weighted average price of the Company’s Class B common stock over trading days that extended beyond the valuation date).