Black Rifle Coffee Company Quarterly report pursuant to Section 13 or 15(d)

Equity-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2023

The following assumptions were utilized in determining the fair value of the units at the grant date:


Expected dividend			—
Expected volatility			60% to 85%
Risk-free interest rate			0.13% to 2.53%
Expected life of incentive awards (in years)			1 to 5 years
Grant date performance and market threshold			$35,000 to $1,250,000

The following weighted average assumptions were utilized in determining the fair value of options granted:


Weighted average grant date fair value			$3.00
Expected dividend			—
Expected volatility			63%
Risk-free interest rate			3.80%
Options term (in years)			4.5

The Company used the Monte Carlo pricing model to estimate the fair value of PSUs utilizing the following assumptions at the grant date:

The following table summarizes the changes in the number of Incentive Units for the nine months ended September 30, 2023:


	Incentive Units	Weighted Average Grant Date Fair Value
Granted and outstanding at January 1, 2023	14,210	$	192.52
Granted	—	—
Forfeited	(5,000)	215.31
Granted and outstanding at September 30, 2023	9,210	$	213.91
Vested at September 30, 2023	5,474	$	212.95

The following table summarizes information about stock option activities for the nine months ended September 30, 2023:


	Stock Options	Weighted Average Exercise Price
Outstanding at January 1, 2023	792,370	$	9.77
Granted	3,623,794	4.75
Forfeited	(802,028)	6.50

Outstanding at September 30, 2023	3,614,136	$	5.43
Vested at September 30, 2023	228,670	$	9.74

The following table summarizes information about the RSUs under the Omnibus Plan for the nine months ended September 30, 2023:


	Restricted Stock Units	Weighted Average Grant Date Fair Value
Nonvested at January 1, 2023	823,829	$	10.68
Granted	1,877,546	5.04
Forfeited	(335,392)	7.38
Vested	(357,758)	10.65
Nonvested at September 30, 2023	2,008,225	$	5.96