v3.25.4
Shareholders' Equity
12 Months Ended
Dec. 31, 2025
Stockholders' Equity Note [Abstract]  
Shareholders' Equity SHAREHOLDERS’ EQUITY
Preferred Stock
The Company is authorized to issue 50,000,000 shares of preferred stock with a par value of $0.001 per share. The Board of Directors is authorized to fix or alter the rights, preferences, privileges and restrictions granted to, or imposed on, each series of preferred stock. There were no shares of preferred stock issued as of December 31, 2025 and 2024.
Common Stock
The Company is authorized to issue 250,000,000 shares of common stock with a par value of $0.001 per share. Shareholders of common stock have unlimited voting rights and are entitled to receive the net assets of the Company upon dissolution, subject to the rights of the preferred shareholders, if any.
At the Market Offering
On November 14, 2024, we entered into a sales agreement (the “Sales Agreement”) with Roth Capital Partners, LLC (“Roth”), pursuant to which we may issue and sell shares of the Company’s common stock, par value $0.001 per share, having an aggregate offering price of up to $10,000, from time to time, through an “at the market” equity offering program under which Roth will act as sales agent (the "ATM Program"). Under the Sales Agreement, we will set the parameters for the sale of shares, including the number of shares to be issued, the time period during which sales are requested to be made, limitations on the number of shares that may be sold in any one trading day and any minimum price below which sales may not be made. Subject to the terms and conditions of the Sales Agreement, Roth may sell the shares by methods deemed to be an “at the market offering” as defined in Rule 415(a)(4) promulgated under the Securities Act of 1933, as amended, including sales made through Nasdaq or on any other existing trading market for our common stock. We pay Roth a commission equal to two and a half percent (2.5%) of the gross sales proceeds of any common stock sold through Roth under the Sales Agreement. The Sales Agreement may be terminated by us upon prior notice to Roth or by Roth upon prior notice to us, or at any time under certain circumstances, including but not limited to the occurrence of a material adverse change in the Company. We are not obligated to sell any shares under the Sales Agreement.
During the year ended December 31, 2025, we sold an aggregate of 347,559 shares of our common stock under the ATM Program, resulting in aggregate net proceeds to us of approximately $2,952, and gross proceeds of approximately $3,079, and paid Roth commissions and fees and other expenses of approximately $127.
Effective March 11, 2026, the Company exercised its right to terminate the Sales Agreement and thus it is no longer in force.
Registered Direct Offerings
On March 24, 2025, we entered into a common stock purchase agreement with several purchasers pursuant to which we agreed to issue and sell, in a registered direct offering, an aggregate of 164,176 shares of our common stock, par value $0.001 per share, at a purchase price of $8.832 per share, resulting in net proceeds of approximately $1,341.
On October 6, 2025, we entered into a common stock purchase agreement with two purchasers pursuant to which we agreed to issue and sell, in a registered direct offering, an aggregate of 666,667 shares of our common stock at a purchase price of $10.50 per share, resulting in net proceeds of approximately $6,541.
Employee Equity Incentive Plans
On May 23, 2006, our shareholders approved the adoption of the Pixelworks, Inc. 2006 Stock Incentive Plan (the "2006 Plan"). The 2006 Plan has since been amended and restated on certain occasions, most recently on May 23, 2025, when our shareholders approved an increase in the total number of authorized shares to 2,640,278 shares. As of December 31, 2025, 234,145 shares were available for grant under the 2006 Plan.
Stock Options
The contractual life of newly issued stock option awards is six years. We did not grant any stock options in 2024 or 2025.
The following is a summary of stock option activity: 
Number of
shares
Weighted
average
exercise
price
Options outstanding as of December 31, 2024:31,364 $25.93 
Expired(2,790)46.92 
Options outstanding as of December 31, 2025:28,574 $23.88 


The following table summarizes information about options outstanding as of December 31, 2025:
 Options OutstandingOptions Exercisable
Range of exercise pricesNumber
outstanding as of
December 31,
2025
Weighted
average
remaining
contractual
life
Weighted
average
exercise
price
Number
exercisable as of
December 31,
2025
Weighted
average
exercise
price
$22.32 - $22.32
4,395 0.28$22.32 3,571 $22.32 
24.00 - 24.00
19,500 0.8524.00 19,500 24.00 
24.84- 24.84
4,679 2.3624.84 4,192 24.84 
$22.32 - $24.84
28,574 1.01$23.88 27,263 $23.91 
During the years ended December 31, 2025 and 2024, there were no options exercised. As of December 31, 2025, options outstanding had a total intrinsic value of $0.

Options outstanding that have vested and are expected to vest as of December 31, 2025 are as follows:
Number of
shares
Weighted
average
exercise
price
Weighted
average
remaining
contractual
term
Aggregate
intrinsic
value
Vested27,263 $23.91 1.01$— 
Expected to vest1,279 23.26 1.01— 
Total28,542 $23.88 1.01$— 
Restricted Stock
The 2006 Plan provides for the issuance of restricted stock, including restricted stock units. During the years ended December 31, 2025 and 2024 we granted 239,439 and 169,190 shares, respectively, of restricted stock with a weighted average grant date fair value of $7.57 and $27.72 per share, respectively.
The following is a summary of restricted stock activity:
Number of
shares
Weighted average grant date fair value
Unvested at December 31, 2024:294,906 $24.70 
Granted239,439 7.57 
Vested(175,835)21.69 
Canceled(38,548)18.17 
Unvested at December 31, 2025:319,962 $13.95 
Expected to vest after December 31, 2025303,735 $14.05 
Employee Stock Purchase Plans
On May 18, 2010, our shareholders approved the adoption of the 2010 Pixelworks, Inc. Employee Stock Purchase Plan (the "ESPP") for U.S. employees and for certain foreign subsidiary employees. The ESPP provides for separate offering periods commencing on February 1 and August 1, with the first offering period beginning August 1, 2010. Each offering period continues for a period of 18 months with purchases every six months. Each eligible employee may purchase up to 250 shares of stock on each purchase date, with a maximum annual purchase amount of $25. The purchase price is equal to 85% of the lesser of the fair market value of the shares on the offering date or on the purchase date. On May 15, 2020, the ESPP was amended when our shareholders approved an increase to the total number of shares of common stock reserved for issuance to 275,000. During the years ended December 31, 2025 and 2024, we issued 5,368 and 12,733 shares, respectively, for proceeds of $47 and $180, respectively, under the ESPP.
Stock-Based Compensation Expense
The fair value of stock-based compensation was determined using the Black-Scholes option pricing model and the following weighted average assumptions:
Year Ended December 31,
20252024
Employee Stock Purchase Plan:
Risk free interest rate4.30 %4.80 %
Expected dividend yield%%
Expected term (in years)1.140.96
Volatility74 %76 %
There were no options granted during the years ended December 31, 2025 and December 31, 2024. The risk free interest rate is estimated using an average of treasury bill interest rates. The expected dividend yield is zero as we have not paid any dividends to date and do not expect to pay dividends in the future. Expected volatility is estimated based on the historical volatility of our common stock over the expected term as this represents our best estimate of future volatility. We recognize forfeitures as they occur. The contractual life of newly issued stock options is six years, and we have elected to use the "simplified method" to estimate expected term. Under the simplified method, an option's expected term is calculated as the average of its vesting period and original contractual life. The expected term of ESPP purchase rights is based on the estimated weighted average time to purchase. The vesting period for restricted stock units is approximately three years.
As of December 31, 2025, unrecognized stock-based compensation expense related to continuing operations is $1,246, which is expected to be recognized as stock-based compensation expense over a weighted average period of 0.78 years.