The Company granted the following awards (in shares):


	Three Months Ended March 31,			Three Months Ended June 30,
	2025			2025
Employee awards:
RSUs		767,353	(1)		1,695,403	(2)
Market RSUs		—			1,715,000	(3)
Performance RSUs		—			1,000,000	(4)
Non-employee director RSUs		—			443,974	(5)
Total awards issued		767,353			4,854,377

_________________________

(1)

RSUs had a weighted average grant date fair value of $5.26 per share, of which 263,160 RSUs had a vesting period of 33.3% annually over the second, third, and fourth anniversary of the vesting determination date and 504,193 RSUs had a vesting period of 25% annually over four years.

(2)

RSUs had a weighted average grant date fair value of $4.72 per share, of which 1,405,713 RSUs had a vesting period of 25% annually over four years, 204,690 RSUs had a vesting period of 33.3% annually over the second, third, and fourth anniversary of the vesting determination date, 50,000 RSUs vest 100% on July 15, 2027, 30,000 RSUs vest 100% on the second anniversary of the vesting determination date, and 5,000 RSUs will vest 100% on July 15, 2026.

(3)

1,715,000 market RSUs had a grant date fair value of $10.84 per share and will vest on July 15, 2028. The number of shares delivered on the vesting date is determined by the percentile ranking of MannKind total shareholder return (TSR) over the period from July 1, 2025 until June 30, 2028 relative to the TSR of the Russell 3000 Pharmaceutical & Biotechnology Index over the same three-year period, as follows: less than 25th percentile=0% of target, 25th percentile=50% of target, 50th percentile=100% of target, 75th percentile=200% of target, 90th percentile or higher=300% maximum. Payout values will be interpolated between the percentile rankings above.

(4)

1,000,000 performance RSUs had a grant date fair value of $3.80 per share and will vest on March 15, 2028. The number of shares delivered on the vesting date, as a percentage of the specified target, shall be determined by the net sales achieved by the Endocrine Business Unit, as reported by the Company for the period from October 1, 2027 to December 31, 2027 as follows: less than $37.5 million=0% target, $37.5 million=25% target, $50.0 million=50% target, $75.0 million=100% target, and $100.0 million or higher=200% target.

(5)

RSUs had a weighted average grant date fair value of $4.57 per share and vested immediately upon the grant date; however, the underlying shares of common stock will not be delivered until there is a separation of service such as resignation, retirement or death.

As of June 30, 2025, there was $30.1 million, $34.9 million, and $3.8 million of unrecognized stock-based compensation expense related to RSUs, Market RSUs and Performance RSUs, respectively, which is expected to be recognized over a weighted average period of approximately 2.84, 2.15, and 2.71 years, respectively.

Total stock-based compensation expense recognized in the condensed consolidated statements of operations as cost of goods sold, cost of revenue – collaborations and services, R&D and selling, general and administrative expense was as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
RSUs and options	$	7,357	$	6,248	$	12,569	$	9,947
Employee stock purchase plan		163		180		336		366
Total	$	7,520	$	6,428	$	12,905	$	10,313

The Company provides all employees, including executive officers, the ability to purchase common stock at a discount under the ESPP. The ESPP is designed to comply with Section 423 of the Internal Revenue Code and provides all employees with the opportunity to purchase up to $25,000 worth of common stock (based on the undiscounted fair market value at the commencement of the offering period) each year at a purchase price that is the lower of 85% of the fair market value of the common stock on either the date of purchase or the commencement of the offering period. An employee may not purchase more than 5,000 shares of common stock on any purchase date. The executives’ rights under the ESPP are the same as those of all other employees.

There were approximately 2.1 million shares of common stock available for issuance under the ESPP as of June 30, 2025.