Landsea Homes Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

Stock-Based Compensation

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

The following table presents a summary of the Company’s nonvested performance share units (“PSUs”) and restricted stock units (“RSUs”) for the three months ended March 31, 2023:


	Awards	Weighted Average Grant Date Fair Value
	(in thousands)
Nonvested, at December 31, 2022	1,625	$	8.82
Granted	171	7.70
Vested	(219)	9.53
Forfeited	—	—
Nonvested, at March 31, 2023	1,577	$	8.60

The following table presents a summary of the Company’s stock options activity for the three months ended March 31, 2023:


	Number of Shares	Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
	(in thousands)			(in years)	(in thousands)
Options outstanding at December 31, 2022	684	$	8.82
Granted	228	6.46
Exercised	—	—
Forfeited	(184)	8.83
Options outstanding at March 31, 2023	728	$	8.08	9.27	$	—
Options exercisable at March 31, 2023(1)	167	$	8.82	8.96	$	—

(1) As of March 31, 2023, the exercisable stock options were out-of-the-money, as the exercise price of the stock options exceeded the market price of the Company’s common stock.

Net stock-based compensation activity resulted in a reduction to expense due to the forfeiture of certain options as well as the revised estimates on the expected PSU achievement. The total reduction from our stock-based compensation was $0.4 million during the three months ended March 31, 2023 and is included in general and administrative expenses on the consolidated statements of operations. For the three months ended March 31, 2022, stock-based compensation expense was $0.5 million.

The following table presents a summary of the Company’s outstanding RSUs and PSUs, assuming the current estimated level of performance achievement (in thousands, except years):


	March 31, 2023
	(in thousands, except period)
Unvested units	1,577
Remaining cost on unvested units	$	3,503
Remaining vesting period	3.75 years

Stock-based compensation expense associated with the outstanding RSUs and PSUs is measured using the grant date fair value. The expense associated with the PSUs also incorporates the estimated achievement of the established performance criteria at the end of each reporting period until the performance period ends.