v3.25.4
Stockholders' Equity
 12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Stockholders' Equity Stockholders’ Equity
Common Stock
As of December 31, 2025 and December 31, 2024, the Company’s certificate of incorporation authorized the Company to issue up to 200,000,000 shares of common stock. Common stockholders are entitled to dividends as and when declared by the Board of Directors, subject to the rights of holders of all classes of stock outstanding having priority rights as to dividends. There have been no dividends declared to date. The holder of each share of common stock is entitled to one vote.
In March and May 2024, the Company granted stock-based awards outside of the existing stock plans to its new Chief Executive Officer and new Chief Financial Officer, respectively. These awards were granted as a material inducement for accepting employment with the Company. The inducement awards consisted of a total of 997,681 shares of the Company’s common stock, which includes an aggregate of 331,156 shares of common stock issuable upon the vesting of restricted stock unit awards and 666,525 shares of common stock issuable upon the exercise of nonqualified stock option grants generally subject to the same terms and conditions as grants that are made under the 2020 Equity Incentive Plan.
Shares Reserved for Future Issuance
The Company has reserved shares of common stock for future issuances as follows:
December 31,
20252024
Common stock options issued and outstanding
3,067,088 3,627,606 
Common stock restricted stock units issued and outstanding
6,667,812 2,728,599 
Common stock available for future grants
2,204,802 3,006,773 
Common stock available for ESPP1,795,996 1,648,046 
Total13,735,698 11,011,024 

Stock Options
As of December 31, 2025, the Company reserved 17,381,487 shares of its common stock under its 2000 Stock Plan (the “2000 Stock Plan”), the 2010 Stock Plan (the “2010 Stock Plan”), the 2020 Stock Plan (the “2020 Stock Plan”), and the 2020 Equity Incentive Plan (the “2020 Equity Incentive Plan” and, together with the 2000 Stock Plan, the 2010 Stock Plan and the 2020 Stock Plan, the “Stock Plans”). Options granted under the Stock Plans may be either incentive stock options or nonqualified stock options. Incentive stock options (“ISO”) may be granted only to the Company employees (including officers and directors). Nonqualified stock options (“NSO”) may be granted to the Company employees and consultants. In January 2026, the number of shares of common stock available for issuance under the 2020 Equity Incentive Plan was increased by 1,666,945 shares as a result of the automatic increase provision in the 2020 Equity Incentive Plan.
Options to purchase the Company’s common stock may be granted at a price not less than 100% of the fair market value in the case of ISO or NSO, except for an employee or non-employee with options who owns more than 10% of
the voting power of all classes of stock of the Company in which case the exercise price shall be no less than 110% of the fair market value per share on the grant date. Options vest ranging from immediately upon grant to a rate of 25% per annum over four years from the grant date. Options expire but not more than ten years after the date of grant.
In November 2025, the Company’s Compensation Committee of the Board of Directors approved the 2025 Inducement Plan (the “Inducement Plan”). The terms of the Inducement Plan are similar to the terms of the 2020 Equity Incentive Plan with the exception that incentive stock options may not be issued under the Inducement Plan and awards under the Inducement Plan may only be issued to eligible recipients under the applicable Nasdaq rules. The Inducement Plan was adopted by the Company’s Compensation Committee of the Board of Directors without stockholder approval pursuant to Rule 5635(c)(4) of the Nasdaq Listing Rules. As of December 31, 2025, the Company reserved 3,200,000 shares of its common stock for issuance pursuant to awards granted under the Inducement Plan. The Company issued 1,625,000 restricted stock units during the year ended December 31, 2025.
Activity with respect to stock options was as follows:
Outstanding Options
Number of SharesWeighted Average Exercise Price
Balance, December 31, 20233,142,981 $16.40 
Options granted
928,125 9.00 
Options exercised
(107,817)2.02 
Options canceled
(335,683)21.96 
Balance, December 31, 20243,627,606 $14.42 
Options granted
128,395 8.29 
Options exercised
(145,435)1.71 
Options canceled
(543,478)9.05 
Balance, December 31, 20253,067,088 $15.72 

The aggregate intrinsic value of options exercised during the years ended December 31, 2025 and December 31, 2024 was $0.3 million and $0.7 million, respectively.
The aggregate intrinsic value of options outstanding as of December 31, 2025 and December 31, 2024 was $0.1 million and $3.7 million, respectively. The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock options and the fair value of the Company’s common stock for stock options that were in-the-money as of December 31, 2025 and December 31, 2024.
December 31, 2025
Number of Shares
Weighted Average Exercise Price
Weighted Average Contractual Life (in Years)
Options vested2,666,070$16.35 4.94
Options vested and expected to vest3,067,088$15.72 5.26
The aggregate intrinsic value of options exercisable as of December 31, 2025 and December 31, 2024 was $0.1 million and $3.7 million, respectively.
Service-Based Restricted Stock Units
The Company estimates the fair value of service-based restricted stock units based on the closing price of the Company’s common stock on the grant date. Activity with respect to service-based restricted stock units was as follows:
Number of Shares Underlying Outstanding Restricted StockWeighted Average Grant Date Fair Value
Outstanding at December 31, 20232,244,903 $15.74 
Granted1,848,908 8.70 
Vested
(987,828)15.19 
Forfeited
(377,384)14.31 
Outstanding at December 31, 20242,728,599 $11.11 
Granted4,793,547 4.49 
Vested
(1,492,336)11.44 
Forfeited
(754,498)8.85 
Outstanding at December 31, 20255,275,312 $5.33 
The fair value as of the respective vesting dates of restricted stock units that vested for the years ended December 31, 2025 and December 31, 2024 was $5.4 million and $7.5 million.
Performance-Based and Market-Based Restricted Stock Units
In fiscal year 2025, the Company granted 326,848 performance-based restricted stock units (“PSUs”) to employees. The final number of PSUs awarded will be determined based on the Company’s consolidated cumulative revenue over a two-year performance period and may vest at a rate ranging from 0% to 200% of the target number of shares. Any PSUs awarded at the end of the performance period will vest in equal installments over the following four quarters. The Company estimates the fair value of these performance-based restricted stock units based on the closing price of its common stock on the grant date. Compensation expense for these awards is calculated based on the expected achievement of the target revenue metrics and is recognized over the requisite service period.
In December 2025, the Company granted 1,200,000 restricted stock units with service and market conditions to certain employees. The vesting of the market-based restricted stock units will be met 33% after one year and the remainder thereunder in equal installments quarterly over the following two years subject to continued employment. Vesting is also contingent on the average closing price of the Company’s common stock being greater than $4.00 over a period of 60 consecutive trading days within three years. The Company estimates the fair value of these market-based restricted stock units on the date of grant using a Monte Carlo simulation including the following assumptions: expected volatility of 100.0%; a risk-free rate of 3.6%; and a cost of equity of 16%. Compensation expense for these awards is recognized over the requisite service period for each tranche based on the graded vested method. The requisite service period is the longer of the explicit service period or the derived service period based on the market condition for each tranche. The derived service period was estimated to be 0.98 years.
Activity with respect to performance-based and market-based restricted stock units was as follows:
Number of Shares Underlying Outstanding Restricted StockWeighted Average Grant Date Fair Value
Outstanding at December 31, 2024— $— 
Granted1,526,848 2.87 
Vested
— — 
Forfeited (1)
(134,348)8.29 
Outstanding at December 31, 20251,392,500 $2.34 
(1) Forfeited PSUs
Stock-Based Compensation for Employees and Non-Employees
The weighted average grant-date fair value of the stock options granted during the years ended December 31, 2025 and December 31, 2024 was $5.86 and $6.02 per share, respectively.
The Company uses the Black-Scholes Merton option-pricing model to determine the fair value of stock options. The determination of the fair value of stock-based payment awards on the date of grant is affected by the stock price as well as assumptions regarding a number of variables. These variables include expected stock price volatility over the term of the awards, risk-free interest rates and expected dividends. The estimated grant date fair values of employee stock options were calculated using the following assumptions:
Years Ended December 31,
20252024
Weighted average expected term (in years)
6.0
6.0 - 6.1
Volatility
79.1%
71.3% - 72.8%
Risk-free interest rate
4.0%
4.1% - 4.5%
Dividend yield——
Expected Term
The expected term is calculated using the simplified method, which is available where there is insufficient historical data about exercise patterns and post-vesting employment termination behavior. The simplified method is based on the vesting period and the contractual term for each grant, or for each vesting-tranche for awards with graded vesting. The mid-point between the vesting date and the maximum contractual expiration date is used as the expected term under this method. For awards with multiple vesting-tranches, the periods from grant until the mid-point for each of the tranches are averaged to provide an overall expected term.
Volatility
The expected stock price volatility assumptions for the Company’s stock options for the years ended December 31, 2025 and December 31, 2024 were determined using the Company’s historical volatility and the historical volatilities of industry peers, referred to as “guideline” companies, as the Company had limited trading history for the Company’s common stock. In evaluating similarity, the Company considered factors such as industry, stage of life cycle and size.
The expected stock price volatility assumptions for the purchase rights under the employee share purchase plan for the years ended December 31, 2025 and December 31, 2024 were determined using the historical volatility of the Company’s common stock.
Risk-Free Rate
The risk-free interest rate assumption is based on the U.S. Treasury instruments whose term was consistent with the expected term of the Company’s stock options.
Dividend Yield
The expected dividend assumption is based on the Company’s history and expectation of dividend payouts.
Fair Value of Common Stock
The fair value of the Company’s common stock is determined based on its closing market price on the date of grant.
2020 Employee Share Purchase Plan
The Company adopted the ESPP in September 2020, with a total of 720,000 shares of common stock initially reserved for issuance. The ESPP permits eligible employees to acquire shares of the Company’s common stock through periodic payroll deductions of up to 15% of base compensation. No employee may purchase more than 2,500 shares during an offering period. In addition, no employee may purchase more than $25,000 worth of stock, determined by the fair market value of the shares at the time such option is granted, in one calendar year. At the end of each purchase period, employees are able to purchase shares at 85% of the lower of the fair market value of the Company’s common stock on the first trading day of the offering period or on the last trading day of the offering period. The Company entered into a new offering period beginning August 18, 2025 and ending February 20, 2026.
The Company issued 249,908 and 173,941 shares under the ESPP for the years ended December 31, 2025 and December 31, 2024, respectively. As of December 31, 2025, there were 1,795,996 shares authorized for future purchase under the ESPP. In January 2026, the number of shares of common stock available for issuance under the ESPP was increased by 416,736 shares as a result of the automatic increase provision in the ESPP.
Compensation expense is calculated using the fair value of the employees' purchase rights under the Black-Scholes model.
Years Ended December 31,
20252024
Weighted average expected term (in years)0.50.5
Volatility
64.0% - 122.6%
54.7% - 69.7%
Risk-free interest rate
4.1% - 4.3%
5.0% - 5.3%
Dividend yield——
Total Stock-Based Compensation
Stock-based compensation expense is reflected in the statements of operations and comprehensive loss as follows (in thousands):
Years Ended December 31,
20252024
Cost of goods sold$1,944 

$1,873 
Research and development2,635 

2,708 
Selling, general and administrative16,654 18,374 
Total$21,233 $22,955 
The above stock-based compensation expense related to the following equity-based awards (in thousands):
Years Ended December 31,
20252024
Stock options and restricted stock units$20,937 $22,460 
ESPP296 495 
Total$21,233 $22,955 
Stock-based compensation of $1.7 million and $1.7 million was capitalized into inventory for the years ended December 31, 2025 and December 31, 2024, respectively. Stock-based compensation capitalized in prior periods of $1.9 million and $1.8 million was recognized as cost of sales in the years ended December 31, 2025 and December 31, 2024, respectively.
As of December 31, 2025, there was $30.6 million of unrecognized compensation costs related to non-vested common stock options and restricted stock units, expected to be recognized over a weighted-average period of 2.4 years. The total grant date fair value of shares vested during the years ended December 31, 2025 and December 31, 2024 was $17.4 million and $15.0 million, respectively.
As of December 31, 2025, the Company had unrecognized employee stock-based compensation relating to ESPP awards of less than $0.1 million, which is expected to be recognized over a weighted-average period of 0.1 years.
Stock Modification
In February 2024, the Company’s former Chief Executive Officer, Glendon French, resigned as President and Chief Executive Officer, effective as of March 15, 2024. Following this date, Mr. French continued as a full-time employee of the Company in the capacity of Senior Advisor to the new President and Chief Executive Officer until May 1, 2024, when his employment ceased. Thereafter, Mr. French has continued to serve as a member of the Company’s board of directors, and his outstanding equity awards have continued to vest in accordance with their terms, subject to his continued service to the Company.
The Company evaluated the change in status in accordance with ASC 718 and determined that there was a modification to the unvested awards expected to vest after March 15, 2024. The total stock-based compensation expense related to the modification, evaluated as of the modification date, was $6.3 million, to be recognized over the remaining vesting periods. The Company recorded $2.1 million and $2.3 million in stock-based compensation expenses related to the modification for the years ended December 31, 2025 and December 31, 2024, respectively.