Company: FOACW
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001828937-25-000009
Chunk: 273

Company: Finance of America Companies Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 3
Chunk 273
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 of FOA Equity, which are exchangeable for shares of Class A Common Stock of the Company on a one-for-one basis.

154

Finance of America Companies Inc.Notes to Consolidated Financial Statements

A summary of the option award activity is presented below:Number of OptionsWeighted Average Exercise PriceWeighted Average Remaining Contractual Term (in years)Aggregate Intrinsic Value (in thousands)Outstanding, December 31, 2023— $— — $— Granted720,000 25.00 Outstanding, December 31, 2024720,000 $25.00 4.8$2,246 The weighted average grant date fair value of the options granted during the year ended December 31, 2024 was $7.30 per option.Equity-based compensation expense for the options was $0.4 million for the year ended December 31, 2024. Unrecognized equity-based compensation expense for the options totaled $4.9 million as of December 31, 2024 and is expected to be recognized over 1.8 years.The Company estimates the fair value of the options at the date of grant using the Black-Scholes option pricing model based on the following inputs:For the year ended December 31, 2024Expected volatility75.0 %Expected dividend yield0.0 %Risk-free interest rate4.2 %Expected term (in years)5.0Expected volatility - This measure is based on the historical volatility of the Company’s common stock price.Expected dividend yield - The Company estimates the expected dividend yield to be zero as the Company does not currently expect to pay dividends on its common stock for the foreseeable future.Risk-free interest rate - This rate is based on the U.S. Treasury yield curve in effect at the time of grant commensurate with the expected term assumption. 

Expected term - The period of time over which the awards are expected to remain outstanding. 

155

Finance of America Companies Inc.Notes to Consolidated Financial Statements

21.    Interest Income and Interest ExpenseInterest income and interest expense from continuing operations consisted of the following (in thousands):For the year ended December 31, 2024For the year ended December 31, 2023Interest income:Interest income on mortgage loans(1)$1,890,700 $1,617,954 Other interest income14,514 10,923 Total portfolio interest income1,905,214 1