Company: AOMN
Filing Date: 2025-03-24
Form Type: 10-K
Source: 0001766478-25-000019
Chunk: 135

Company: Angel Oak Mortgage REIT, Inc.
Filing Date: 2025-03-24
Form: 10-K
Item: Item 7
Chunk 135
---
 ended December 31, 2024 as compared to 2023.

Stock Compensation

For the years ended December 31, 2024 and 2023, our stock compensation expense was $2.0 million and $1.7 million, respectively. The primary driver of this increase is the recognition of stock compensation expense associated with restricted stock awards and market-contingent performance-based restricted stock unit awards (“PSUs”). Our restricted stock awards generally vest over four years and our PSUs generally vest over three or four years (depending on the tranche of award), subject to achievement of the applicable performance goals during the three-year performance period.

Operating Expenses Incurred with Affiliate

For the years ended December 31, 2024 and 2023, our operating expenses incurred with affiliate were $1.8 million and $2.1 million, respectively. These expenses, which are substantially comprised of payroll reimbursements to our Manager, decreased versus the comparative period due to a rationalization of resources.

Securitization Expenses

For the year ended December 31, 2024 and 2023, our securitization expenses were $3.8 million and $2.5 million, respectively. The increase is due to a larger securitization volume in the year ended December 31, 2024 as compared to the prior year. Expenses incurred during the year ended December 31, 2024 are related to the AOMT 2024-3, AOMT 2024-4, AOMT 2024-6, AOMT 2024-10, and AOMT 2024-13 securitizations. The securitization costs incurred for the comparable period in 2023 were associated with the AOMT 2023-1, AOMT 2023-4, AOMT 2023-5, and AOMT 2023-7 securitizations.

61

Management Fee Incurred with Affiliate

For the years ended December 31, 2024 and 2023, our management fee incurred with affiliate was $5.0 million and $5.8 million, respectively. The decrease is due to the decline in our average Equity (as defined in the Management Agreement) for the year ended December 31, 2024 as compared to the same period in 2023. The calculation of Equity for the purposes of the Management Agreement includes the addition of Distributable Earnings, which is