Company: KODK
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0000950170-25-040256
Chunk: 158

Company: EASTMAN KODAK CO
Filing Date: 2025-03-17
Form: 10-K
Item: Item 1B
Chunk 158
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 2022 was less than $1 million, $1 million and $2 million, respectively. Compensation cost related to stock options for the years ended December 31, 2024, 2023 and 2022 was less than $1 million, $3 million and $1 million, respectively.As of December 31, 2024, there was less than $1 million of unrecognized compensation cost related to stock options, which will be recognized over a weighted average period of 1.3 years. There were less than 1 million options exercised in the years ended December 31, 2024, 2023 and 2022.Kodak utilizes the Black-Scholes option valuation model to estimate the fair value of stock options that do not have a market condition for award vesting and the lattice-based method to estimate the fair value of stock options with a market condition for award vesting.The expected term of options granted is the period of time the options are expected to be outstanding and is calculated using a simplified method based on the option’s vesting period and original contractual term. The Company uses the historical volatility of the Company’s stock to estimate expected volatility. The risk-free rate was based on the yield on U.S. Treasury notes with a term equal to the option’s expected term.The following inputs were used for the valuation of stock option grants issued without a market condition in the year ended December 31, 2023 (there were no stock option grants issued in the years ended December 31, 2024 and 2022): 

        Year Ended

        December 31,

        2023

         Weighted-average fair value of options granted
         
        $
        3.48

         Weighted-average risk-free interest rate

        3.75
        %

         Expected option lives (in years)

        4.5

         Weighted-average volatility

        120
        %

         Expected dividend yield

        0
        %
       
       The following inputs were used in the lattice-based valuation of stock option grants issued with a market condition in 2023: 

        Year Ended

        December 31,

        2023

        Fair value of options granted
         
        $
        2.25

        Risk-free interest rate

        3.80
        %

        Term (in years)

        3.0

        Volatility

        60
        %

        Weighted-average expected dividend yield