On July 21, 2021, the Company adopted the Microvast Holdings, Inc. 2021 Equity Incentive Plan (the “2021 Plan”), effective upon the Closing Date. The 2021 Plan provides for the grant of incentive and non-qualified stock options, restricted stock units, restricted share awards, stock appreciation awards, and cash-based awards to employees, directors, and consultants of the Company. Options awarded under the 2021 Plan expire no more than 10 years from the date of grant. Concurrently with the closing of the Business Combination, the share awards granted under 2012 Share Incentive Plan of Microvast, Inc. (the “2012 Plan”) were rolled over by removing original performance conditions and converting into options and capped non-vested share units with modified vesting schedules, using the Common Exchange Ratio of 160.3. The 2021 Plan reserved 5% of the fully-diluted shares of Common Stock outstanding immediately following the Closing Date plus the shares underlying the awards rolled over from the 2012 Plan for issuance in accordance with the 2021 Plan’s terms.


	Six months ended June 30, 2025
Exercise price	$	3.57
Expected terms (years)	5.94
Volatility	109.06		%
Risk-free interest rate	4.04		%
Expected dividend yields	0.00		%
Weighted average fair value of options granted	$	2.99

The exercise prices for each award were extracted from the option agreements. The expected terms for each award were derived using the simplified method, and is estimated to occur at the midpoint of the vesting date and the expiration date. The volatility of the underlying common stock during the lives of the options was a blend of implied volatility from the average volatility of peer companies, implied volatility and the Company's historical volatility. Risk-free interest rate was estimated based on the market yield of U.S. Government Bonds with maturity close to the expected term of the options. The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the options.


Stock options life	Number of Shares	Weighted Average Exercise Price (US$)	Weighted Average Grant Date Fair Value (US$)	Weighted Average Remaining Contractual Life
Outstanding as of December 31, 2024	32,701,399	5.80	4.58	4.5
Granted	300,000	3.57	2.99
Exercised	(33,334)	2.08	1.48
Forfeited	(3,947,722)	6.20	4.85
Outstanding as of June 30, 2025	29,020,343	5.72	4.53	4.2
Expected to vest and exercisable as of June 30, 2025	29,020,343	5.72	4.53	4.2
Exercisable as of June 30, 2025	26,487,010	6.12	4.85	4.0

Outstanding as of December 31, 2023	32,876,682	6.01	4.73	5.7
Forfeited	(1,243,497)	4.22	2.83
Outstanding as of June 30, 2024	31,633,185	6.08	4.80	5.2
Expected to vest and exercisable as of June 30, 2024	31,633,185	6.08	4.80	5.2
Exercisable as of June 30, 2024	20,922,066	6.15	4.88	5.2

During the three months ended June 30, 2025 and 2024, the Company recorded share-based compensation expense of $218 and $10,285 related to the option awards, respectively. During the six months ended June 30, 2025 and 2024, the Company recorded share-based compensation expense of $410 and $22,313 related to the option awards, respectively.

The total unrecognized equity-based compensation costs as of June 30, 2025 related to the stock options was $2,488, which is expected to be recognized over a weighted-average period of 1.6 years. The aggregate intrinsic value of the stock options as of June 30, 2025 was $5,396.

Following the Business Combination, the Company granted 5,756,657 restricted stock units (“RSUs”) and 3,290,953 performance-based restricted stock units (“PSUs”) subject to service, performance and/or market conditions. The service condition requires the participant’s continued services or employment with the Company through the applicable vesting date, and the performance condition requires the achievement of the performance criteria defined in the award agreement. The market condition is based on the Company’s total stockholder return (“TSR”) relative to a comparator group during a specified performance period.

The fair value of RSUs is determined by the market closing price of Common Stock at the grant date and is amortized over the vesting period on a straight-line basis. The fair value of PSUs that include vesting based on market conditions are estimated using the Monte Carlo valuation method. For PSUs with performance conditions, share-based compensation expense is only recognized if the performance conditions become probable to be satisfied. Compensation cost for these awards is amortized on a straight-line basis over the vesting period based on the grant date fair value, regardless of whether the market condition is satisfied. Accordingly, the Company recorded share-based compensation expense of $457 and $868 related to RSUs and $171 and $271 related to PSUs during the three and six months ended June 30, 2025. During the three and six months ended June 30, 2024, the Company recorded share-based compensation expense of $271 and $700 related to these RSUs and $324 and $(1,492) related to PSUs.


	Number of Non-Vested Shares	Weighted Average Grant Date Fair Value Per Share (U.S.$)
Outstanding as of December 31, 2024	3,423,305	1.63
Granted	1,208,787	2.78
Vested	(489,143)	2.57
Forfeited	(128,941)	1.81
Outstanding as of June 30, 2025	4,014,008	1.86

Outstanding as of December 31, 2023	3,598,606	3.07
Granted	79,909	1.40
Vested	(503,505)	2.65
Forfeited	(749,267)	4.33
Outstanding as of June 30, 2024	2,425,743	2.72


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Cost of revenues	$	62	$	1,481	$	124	$	2,619
General and administrative expenses	566		7,633		1,003		15,800
Research and development expenses	156		2,521		306		4,298
Selling and marketing expenses	62		488		116		1,271
Construction in process	—		(17)		—		14
Total	$	846	$	12,106	$	1,549	$	24,002