Company: FWRG
Filing Date: 2025-04-08
Form Type: ARS
Source: 0001789940-25-000033
Chunk: 127

Company: First Watch Restaurant Group, Inc.
Filing Date: 2025-04-08
Form: ARS
Chunk 127
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VERAGE GRANT DATE FAIR VALUE Nonvested, December 31, 2023 1,234,031 $ 7.36 Vested (874,575) $ 7.76 Forfeited (35,211) $ 4.82 Nonvested, December 29, 2024 324,245 $ 6.55 There were no stock options granted during Fiscal 2024 or Fiscal 2023. The weighted average grant date fair value of options granted during Fiscal 2022 was $6.81. The total grant date fair value of stock options that vested during Fiscal 2024, Fiscal 2023 and Fiscal 2022 was $6.8 million, $7.1 million and $7.4 million, respectively. Fair value of Stock Options The Black-Scholes valuation model is used to estimate the fair value of stock option awards granted. The assumptions utilized to estimate the grant date fair value of these awards granted in Fiscal 2022 were as follows: Weighted average expected term (years) 6.5 Weighted average expected volatility 52.4 % Risk-free interest rate 2.6 % Expected dividend yield — The Company did not have sufficient historical stock option exercise activity and therefore the expected term of stock options granted in Fiscal 2022 is estimated using the simplified method, which represents the mid-point between the vesting period and the contractual term for each grant. The expected volatility of stock options is based on the historical volatilities of a set of publicly traded peer companies in a similar industry as the Company lacks company-specific historical or implied volatility information. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve for time periods approximately equal to the expected term of the stock option award. The expected dividend yield is based on the fact that the Company has never paid cash dividends and does not have intentions of paying dividends in the foreseeable future. Restricted Stock Units The following table summarizes RSU activity for Fiscal 2024: RESTRICTED STOCK UNITS WEIGHTED AVERAGE GRANT DATE FAIR VALUE AGGREGATE INTRINSIC VALUE (in thousands) Outstanding, December 31, 2023 521,042 $ 15.71 $ 10,473 Granted 475,328 $ 24.08 Vested (197,427) $ 16.02 Forfeited (39,222) $ 19.54 Outstanding, December 29, 2024 759,721 $ 20.