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

6 Months Ended

Jun. 30, 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 six months ended June 30, 2023:


	Awards	Weighted Average Grant Date Fair Value
	(in thousands)
Nonvested, at December 31, 2022	1,625	$	8.82
Granted	238	7.95
Vested	(375)	8.68
Forfeited	—	—
Nonvested, at June 30, 2023	1,488	$	8.72

The following table presents a summary of the Company’s stock options activity for the six months ended June 30, 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	(199)	8.74
Options outstanding at June 30, 2023	713	$	8.09	8.97	$	892
Options exercisable at June 30, 2023	167	$	8.82	8.51	$	87

Stock-based compensation expense totaled $1.7 million and $1.4 million during the three and six months ended June 30, 2023, respectively, and is included in general and administrative expenses on the consolidated statements of operations. Net stock-based compensation activity during the three months ended March 31, 2023 resulted in a reduction to expense due to the forfeiture of certain options as well as the revised estimates on the expected PSU achievement. For the three and six months ended June 30, 2022, stock-based compensation expense was $1.4 million and $1.9 million, respectively.

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):


	June 30, 2023
	(in thousands, except period)
Unvested units	1,488
Remaining cost on unvested units	$	3,205
Remaining vesting period	3.50 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.