Company: LGIH
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001580670-25-000058
Chunk: 84

Company: LGI Homes, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 84
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 and require that the recipients continue to be employed by us through the determination date. The PSUs can only be settled in shares of our common stock. The following table summarizes the activity of our PSUs for the six months ended June 30, 2025:Six Months Ended June 30,2025Target SharesWeighted Average Grant Date Fair ValueBeginning balance196,770 $111.38 Granted116,227 $75.09 Forfeited(60,272)$118.80 Vested— $— Ending balance252,725 $92.92 At June 30, 2025, management estimates that the recipients will receive approximately 77.9% of the weighted average target number of PSUs outstanding at the end of the applicable three-year performance cycle based on projected performance compared to the target performance metrics.  PSUs granted in 2022 were forfeited based on actual results as compared to the target performance metrics.  We recognized $0.9 million and $1.2 million of total stock-based compensation expense related to outstanding PSUs for the three months ended June 30, 2025 and 2024, respectively.  We recognized $1.5 million and $3.2 million of total stock-based compensation expense related to outstanding PSUs for the six months ended June 30, 2025 and 2024, respectively.  At June 30, 2025, we had unrecognized compensation cost of $11.4 million, based on the probable amount, related to unvested PSUs, which is expected to be recognized over a weighted average period of 2.3 years.  PSUs granted in 2023, 2024 and 2025 are excluded from the calculation of diluted EPS as they are subject to unsatisfied performance conditions.Employee Stock Purchase PlanOn April 24, 2025, our stockholders approved and authorized 500,000 additional shares of our common stock that may be sold under the LGI Homes, Inc. 2016 Employee Stock Purchase Plan (“the ESPP”).  The maximum number of shares of our common stock that may be sold under the ESPP is 1,000,000 shares.

9.    FAIR VALUE DISCLOSURES 

Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements (“ASC 820”), defines fair value as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between