Opening of Proposals - WWTP Solar Guaranteed Energy Savings Contract Proj. No. 124-015 - Ameresco

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Table of Contents AMERESCO, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (In thousands, except per share amounts) The following table sets forth additional disclosures about our plan: Aggregate intrinsic value of options exercised Cash received from stock option exercises Weighted -average fair value of stock options granted Stock -based compensation expense (1) Income tax benefit from stock -based compensation expense Year Ended December 31, 2023 2022 2021 8,511 $ 9,775 $ 33,494 2,438 $ 3,954 $ 5,563 23.99 $ 37.87 $ 28.94 10,318 $ 15,046 $ 8,716 1,102 $ 659 $ 4,932 (1) Included in selling, general, and administrative expenses in the accompanying consolidated statements of income and includes expense in connection with our ESPP and RSUs. Under the terms of our 2020 Plan, all options expire if not exercised withinten years after the grant date. We typically award options that vest over afive-year period on an annual ratable basis. From time to time, we award options providing for vesting over three years, with one-third vesting on each of the first three anniversaries of the grant date. If the employee ceases to be employed by us for any reason before vested options have been exercised, the employee has 90 days to exercise options that have vested as of the date of such employee's termination, or they are forfeited. We use the Black-Scholes option pricing model to determine the weighted -average fair value of options granted. We recognize the compensation cost of stock -based awards on a straight-line basis over the requisite service period of the award. The determination of the fair value of stock -based payment awards utilizing the Black-Scholes model is affected by the stock price and a number of assumptions, including expected volatility, expected life, risk -free interest rate and expected dividends. The following table sets forth the significant assumptions used in the model: Year Ended December 31, 2023 2022 2021 Expected dividend yield —% —% —% 3.35%-4.44% 1.69%-3.82% 0.92%-1.46% Risk -free interest rate 54%-56% 51%-53% 48%-50% Expected volatility Expected life 6.5 years 6.5 years 6.5 years We will continue to use judgment in evaluating the expected term and volatility related to stock -based compensation on a prospective basis and incorporate these factors into the Black-Scholes pricing model. We record forfeitures as they occur. Higher volatility and longer expected lives result in an increase to stock -based compensation expense determined at the date of grant. As of December 31, 2023, there was approximately $30,075 of unrecognized compensation expense related to non -vested stock option awards and RSUs that is expected to be recognized over a weighted -average period of 2.0 years. Restricted Stock Units During the year ended December 31, 2023, we granted awards of RSUs to our employees and non -employee directors under our 2020 Plan. These RSUs represent a promise to deliver shares to participants at a future date after certain vesting conditions are met. RSUs do not have the voting rights of common stock and the shares underlying RSUs are not considered issued and outstanding upon grant. The fair value of RSUs is based on the closing stock price of our common stock on the grant -date and expensed over the requisite service period of the award. 94