v3.25.2
Share-Based Compensation
 6 Months Ended
Jun. 30, 2025
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation Share-Based Compensation
Equity Plans
The Company grants awards to recipients through the 2017 Equity Incentive Plan, as amended (the “2017 Plan”), which was approved by stockholders and the Board of Directors. In June 2025, stockholders approved an amendment to the Company’s 2017 Equity Incentive Plan to increase the number of shares available for issuance by 4.75 million shares of common stock. Pursuant to the latest amendment, the 2017 Plan provides for the issuance of shares that total no more than the sum of (i) 22,900,000 new shares, (ii) any returning shares such as forfeited, cancelled, or expired shares granted under either the 2017 Plan or the Second Amended and Restated 2007 Equity Incentive Plan and (iii) 500,000 shares pursuant to an inducement award. The number of shares available to be issued under the 2017 Plan will be reduced by (i) one share for each share that relates to an option or stock appreciation right award and (ii) 1.5 shares for each share which relates to an award other than a stock option or stock appreciation right award (a full-value award). As of June 30, 2025, there were approximately 6.2 million remaining shares available for issuance under the 2017 Plan. Options expire 10 years from the date of grant.
The Company uses the Black-Scholes option-pricing model to recognize the value of stock-based compensation expense for stock option awards that are not market based. Determining the appropriate fair-value model and calculating the fair value of stock option awards at the grant date requires judgment, including estimating stock price volatility and expected option life. The fair-value of the restricted stock unit awards at the grant date is based on the market price on the grant date. The fair-value of the market performance stock unit awards (PSUs) at the grant date is based on a Monte Carlo simulation based on the specific performance metrics. The Company develops estimates based on historical data and market information, which can change significantly over time, and adjusts for forfeitures as they occur.
General Vesting Conditions
The Company’s stock options awards are generally subject to a one-year cliff vesting period, after which one-third of the shares vest with the remaining shares vesting ratably each month over a two-year period subject to the applicable grantee’s continued service. Restricted stock unit (RSU) awards are generally subject to a three-year vesting period with one-third vesting per year on the anniversary of the grant date. The PSUs are eligible to vest during a seven-year performance period based on the achievement and maintenance of certain volume weighted average price thresholds for a minimum of 60 Trading Days and upon certification by the Board’s Compensation Committee and subject to the Chief Executive Officer’s continued employment with the Company on the applicable vesting date. Certain executive stock option awards provide for accelerated vesting if there is a change in control or termination without cause.
Stock Options
The Company used the following weighted average assumptions for options granted during the six months ended June 30, 2025:
Weighted Average: Six Months Ended June 30, 2025
Expected term6.4 years
Expected volatility78.0 %
Risk-free rate4.5 %
Expected dividends— %
Market Performance Stock Units
The Company used the following weighted average assumptions in the Monte Carlo model for market PSUs granted during the six months ended June 30, 2025:
Weighted Average: Six Months Ended June 30, 2025
Discount Period 7.0 years
Expected volatility76.7 %
Risk-free rate4.1 %
Size Premium 1.7 %
Cost of Equity 22.1 %

Service Period Based Stock Options
The following table summarizes activity of service period-based stock options during the six months ended June 30, 2025:
Weighted Average
(In thousands except per share data and remaining contractual term)Number of
Options		Exercise
Price		Remaining
Contractual
Term (Years)		Aggregate
Intrinsic
Value
Outstanding at December 31, 20249,377 $3.17 6.1$22,988 
Options Granted1,461 6.41 
Options Exercised(1,024)2.57 6,481 
Options Forfeited(322)5.74 
Outstanding at June 30, 20259,492 $3.64 6.5$102,197 *
Exercisable at June 30, 20256,165 $3.54 5.2$67,013 *
*The aggregate intrinsic values in the table above are based on the Company’s stock price of $14.41, which is the closing price of the Company’s stock on the last trading day for the period ended June 30, 2025.
Market Based Stock Options
The Company grants stock option awards that are market based which have vesting conditions associated with a service condition as well as performance of the Company’s stock price. The following table summarizes market based stock options activity during the six months ended June 30, 2025:
 Weighted Average
(In thousands except per share data and remaining contractual term)Number of
Options		Exercise
Price		Remaining
Contractual
Term (Years)		Aggregate
Intrinsic
Value
Outstanding at December 31, 20241,000 $4.24 2.8$1,070 
Options Granted— — 
Options Exercised(1,000)4.24 $3,860 
Options Forfeited— — 
Outstanding and exercisable at June 30, 2025— $— —$— 

There were no activities related to restricted stock awards during the six months ended June 30, 2025.

Restricted Stock Units
The following table summarizes activity of RSUs during the six months ended June 30, 2025:
(In thousands except per share fair value)Number of RSUsWeighted Average
Fair Value
Unvested shares at December 31, 2024609 $1.64 
Granted— — 
Vested(233)1.70 
Forfeited(75)1.61 
Unvested shares at June 30, 2025301 $1.61 

Market Performance Stock Units
The Company grants market performance stock units that are market based which have vesting conditions associated with the performance of the Company’s stock price. During the six months ended June 30, 2025, none of the market-based vesting conditions tied to the Company’s stock price were met. The following table summarizes activity of market PSUs during the six months ended June 30, 2025:
(In thousands except per share fair value)Number of PSUsWeighted Average
Fair Value
Unvested shares at December 31, 2024— $— 
Granted1,519 3.44 
Vested— — 
Forfeited— — 
Unvested shares at June 30, 20251,519 $3.44 
Total Share-Based Compensation
Total share-based compensation expense was as follows:
Three Months Ended June 30,Six Months Ended June 30,
(In thousands)2025202420252024
Share-based compensation expense
Cost of sales$67 $85 $126 $172 
Sales and marketing215 248 421 440 
Research and development149 194 272 436 
General and administrative1,057 658 1,744 1,121 
Total$1,488 $1,185 $2,563 $2,169 

As of June 30, 2025, the Company expects to recognize future share-based compensation expense of approximately $8.1 million related to unvested stock options, $0.4 million for unvested RSUs, and $4.5 million for unvested PSUs. These expenses will be recognized over weighted-average years of approximately 2.1 for options, 1.4 for RSUs, and 3.8 for PSUs.