v3.25.2
Stockholders' Equity
 6 Months Ended
Jun. 30, 2025
Equity [Abstract]  
Stockholders' Equity

8. Stockholders’ equity

The Company has a 2014 Equity Incentive Plan, or the 2014 Plan, under which the Company granted restricted stock units, restricted stock awards, performance units, performance shares, and options to purchase shares of its common stock. As of June 30, 2025, awards with respect to 116,596 shares of the Company’s common stock were outstanding under the 2014 Plan.

The Company has an Amended and Restated 2023 Equity Incentive Plan, or the 2023 Plan, that provides for the grant of incentive stock options, within the meaning of Section 422 of the Internal Revenue Code, to the Company’s employees and any parent and subsidiary corporation’s employees, and for the grant of nonstatutory stock options, restricted stock, restricted stock units, restricted stock awards, stock appreciation rights, performance units and performance shares to its employees, directors and consultants and its parent and subsidiary corporations’ employees and consultants.

As of June 30, 2025, awards with respect to 3,007,333 shares of the Company's common stock were outstanding, and 1,160,824 shares of common stock remained available for issuance under the 2023 Plan. The shares available for issuance under the 2023 Plan will be increased by any shares returned to the 2014 Plan as a result of expiration or termination of awards.

The Company previously granted restricted stock units to induce an employee to accept employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4). As of June 30, 2025, awards with respect to 125,000 shares of the Company's common stock were outstanding pursuant to such inducement grant.

Securities purchase agreement

On January 25, 2025, the Company entered into a Securities Purchase Agreement, or the Purchase Agreement, with Yuwell (Hong Kong) Holdings Limited, or the Investor, a wholly-owned subsidiary of Yuwell, pursuant to which the Investor purchased 2,626,425 shares of the Company’s common stock at a price per share of $10.36, for an aggregate purchase price of approximately $27,210, or the Private Placement. The closing of the Private Placement took place on February 21, 2025.

Stock incentive awards

The Company grants restricted stock units, or RSUs, under the 2014 and 2023 Plans and made one inducement grant of RSUs in 2024. RSUs vest either based solely on the satisfaction of time-based service conditions or on the satisfaction of time-based service conditions combined with performance criteria. RSUs are subject to forfeiture if the holder’s services to the Company terminate before vesting.

RSUs granted with only time-based service vesting conditions generally vest over three-year service periods, as defined in the terms of each award. RSUs that vest based on the satisfaction of time-based service conditions combined with performance criteria generally vest over a three-year service and performance period, based on performance and/or market conditions established at the time of the award. The portion of the RSU award that is earned may equal or be more or less than the targeted number of shares subject to the RSU award depending on whether the performance criteria are met.

RSU activity for the six months ended June 30, 2025 is summarized below:

 

 

 

 

 

 

 

 

 

 

 

Weighted-

 

 

 

 

 

 

 

 

 

 

 

 

average

 

 

 

 

 

 

 

 

 

 

 

 

grant

 

 

 

 

 

 

Performance

 

 

 

 

 

date fair

 

 

 

 

 

 

and

 

 

 

 

 

value

 

Restricted stock units

 

Time-based

 

 

time-based

 

 

Total

 

 

per share

 

Unvested restricted stock units as of December 31, 2024

 

 

1,203,383

 

 

 

601,194

 

 

 

1,804,577

 

 

$

8.61

 

Granted

 

 

926,671

 

 

 

822,308

 

 

 

1,748,979

 

 

 

9.19

 

Vested

 

 

(394,503

)

 

 

(118,100

)

 

 

(512,603

)

 

 

10.12

 

Forfeited/canceled

 

 

(93,060

)

 

 

(110,118

)

 

 

(203,178

)

 

 

9.99

 

Unvested restricted stock units as of June 30, 2025 (1)

 

 

1,642,491

 

 

 

1,195,284

 

 

 

2,837,775

 

 

$

8.52

 

Unvested and expected to vest restricted stock units outstanding as of
      June 30, 2025

 

 

 

 

 

 

 

 

1,999,895

 

 

$

8.41

 

(1) Outstanding RSUs are based on the maximum payout of the targeted number of shares.

As of June 30, 2025, the unrecognized compensation cost related to unvested employee restricted stock units was $13,299, excluding estimated forfeitures. This amount is expected to be recognized over a weighted average period of 2.1 years.

Employee stock purchase plan

 

The Company’s 2014 Employee Stock Purchase Plan, or ESPP, provides all eligible employees the option to purchase shares of the Company’s common stock at a discount through payroll deductions. As of June 30, 2025, a total of 695,428 shares of common stock were available for future purchase under the ESPP. In the first quarter of 2025, an additional 179,069 shares of common stock were reserved for issuance pursuant to future ESPP purchases as a result of the annual evergreen increase under the ESPP.

Stock-based compensation

Stock-based compensation expense recognized for the three and six months ended June 30, 2025 and 2024, was as follows:

 

 

 

Three months ended

 

 

Six months ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Stock-based compensation expense by type of award:

 

 

 

 

 

 

 

 

 

 

 

 

Restricted stock units

 

$

2,205

 

 

$

1,696

 

 

$

4,213

 

 

$

4,005

 

Employee stock purchase plan

 

 

88

 

 

 

118

 

 

 

227

 

 

 

225

 

Total stock-based compensation expense

 

$

2,293

 

 

$

1,814

 

 

$

4,440

 

 

$

4,230

 

Stock-based compensation expense was calculated based on awards of restricted stock units expected to vest based on the Company’s historical award cancellations. ASC 718 – Compensation-Stock Compensation requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

For the three and six months ended June 30, 2025 and 2024, respectively, stock-based compensation expense recognized under ASC 718, included in cost of revenue, research and development expense, sales and marketing expense, and general and administrative expense was as follows:

 

 

Three months ended

 

 

Six months ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Cost of revenue

 

$

129

 

 

$

145

 

 

$

296

 

 

$

325

 

Research and development

 

 

69

 

 

 

(75

)

 

 

164

 

 

 

385

 

Sales and marketing

 

 

186

 

 

 

428

 

 

 

400

 

 

 

858

 

General and administrative

 

 

1,909

 

 

 

1,316

 

 

 

3,580

 

 

 

2,662

 

Total stock-based compensation expense

 

$

2,293

 

 

$

1,814

 

 

$

4,440

 

 

$

4,230