Table of Content We granted 445,136 LTPSUs during 2023 to certain executives with a milestone factor related to our adjusted EBITDA. This milestone factor is considered a non-market condition under GAAP. For performance units not subject to market conditions, we determine the fair value of each performance unit based on the market price of our common stock on the date of grant. For these awards, we recognize compensation expense over the vesting term on a straight-line basis based upon the performance target that is probable of being met, subject to adjustment for changes in the expected or actual performance outcome. For performance awards, we recorded an expense of $0.2 million and income of $1.3 million for the years ended December 31, 2023 and 2022, respectively. Transactions involving our performance awards during the twelve months ended December 31, 2023 are summarized below: Twelve Months Ended December 31, 2023 Performance Units Not Subject to Market Conditions Weighted Average No. of Stock Fair Value at Date of 1 Units Grant (in thousands) Performance stock units, beginning of period 2 $ 116.90 Changes during the period: Granted 445 $ 8.22 Cancelled and forfeited (2) $ 116.90 Performance stock units, end of period 445 $ 8.22 __________________________ 1 Performance units with variable payouts are shown at target level of performance. There were no performance stock units vested during the years ended December 31, 2023 and 2022. We determine the fair value of each stock option at the grant date using a Black-Scholes model and recognize the resulting expense of our stock option awards over the period during which an employee is required to provide services in exchange for the awards, usually the vesting period. There was no compensation expense related to stock options for the years ended December 31, 2023 and 2022. Our options typically vest in equal annual installments over a four-year service period. Expense related to an option grant is recognized on a straight-line basis over the specified vesting period for those options. Stock options generally have a ten-year term. No stock options were granted during the years ended December 31, 2023 and 2022. There were a small number of options remaining as of December 31, 2023 that had a weighted-average remaining contractual life of 0.4 years, and an exercise price of $504.70. There were no stock option awards exercised during the years ended December 31, 2023 and 2022. 58