Company: FWRG
Filing Date: 2025-04-08
Form Type: ARS
Source: 0001789940-25-000033
Chunk: 126

Company: First Watch Restaurant Group, Inc.
Filing Date: 2025-04-08
Form: ARS
Chunk 126
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 will vest on August 1, 2022. Additionally, the exercise period of these time-based and performance-based vested option awards was modified such that any vested option may be exercised at any time prior to the 10th anniversary of the original grant date. These actions were accounted for as modifications and resulted in an increase of $0.3 million to the fair value of these awards. Upon the consummation of the Company’s IPO in October 2021, certain performance-based option awards converted into time-based option awards and stock compensation expense of $2.4 million was recognized in the fourth quarter of Fiscal 2021. The remaining expense is being recognized on an accelerated recognition method over the remaining service period. An immediate one-time charge of $5.6 million was recognized upon closing of the IPO, which included (i) the expense from the date of the modifications through the IPO date and (ii) the expense related to performance-based option awards for which the market condition was not satisfied upon the IPO. Stock Options The following table summarizes stock option activity for Fiscal 2024: NUMBER OF OPTIONS WEIGHTED AVERAGE EXERCISE PRICE AGGREGATE INTRINSIC VALUE (in thousands) WEIGHTED AVERAGE REMAINING CONTRACTUAL LIFE (in years) Outstanding, December 31, 2023 4,347,186 $ 10.22 $ 42,965 5.1 Forfeited (35,211) $ 12.82 Exercised (610,958) $ 10.52 Outstanding, December 29, 2024 3,701,017 $ 10.14 $ 31,676 4.1 Exercisable, December 29, 2024 3,376,772 $ 9.90 $ 29,721 3.8 The aggregate intrinsic value is based on the difference between the exercise price of the stock option and the closing price of the Company’s common stock on the Nasdaq Global Select Market on the last day of the trading period. The total intrinsic value of stock options exercised was $6.6 million, $5.7 million, and $1.1 million during Fiscal 2024, Fiscal 2023 and Fiscal 2022, respectively. FIRST WATCH RESTAURANT GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) 84

A summary of the non-vested stock option activity during Fiscal 2024 is as follows: NUMBER OF OPTIONS WEIGHTED A