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SHARE-BASED COMPENSATION
 3 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement [Abstract]  
SHARE-BASED COMPENSATION

10. SHARE-BASED COMPENSATION

 

The Company issues share-based compensation to employees in the form of restricted stock units (RSUs), performance stock units (PSUs), and stock options. Share-based awards are accounted for by recognizing the fair value of share-based compensation expense on a straight-line basis over the service period of the award, net of estimated forfeitures. The fair value of RSUs and PSUs is determined by the closing price of common stock on the date of grant. The fair value of stock options is estimated on the grant date using the Black-Scholes option pricing model. Changes in estimated inputs or using other option valuation methods may result in materially different option values and share-based compensation expense.

 

 

The following table summarizes the amount of share-based compensation expense by line item on the condensed consolidated statements of operations:

 

 

         
   Three Months Ended 
   March 31, 
Share-based compensation expense  2026   2025 
Research and development expense  $227   $508 
Sales, marketing, general and administrative expense   756    1,413 
Total Share-based compensation expense  $983   $1,921 

 

Options Activity and Positions

 

The following table summarizes shares, weighted-average exercise price, weighted-average remaining contractual term, and aggregate intrinsic value of options outstanding and options exercisable as of March 31, 2026 (in thousands, except per share data):

 

           Weighted-      
       Weighted- Average  

Average

Remaining

   Aggregate 
Options      Exercise   Contractual   Intrinsic 
   Shares   Price   Term (years)   Value 
Outstanding as of March 31, 2026   602   $1.40    1.8   $5 
                     
Exercisable as of March 31, 2026   602   $1.40    1.8   $5 

 

As of March 31, 2026, there is no unrecognized share-based employee compensation related to stock options.

 

Restricted Stock Activity and Positions

 

The following table summarizes activity and positions with respect to RSUs and PSUs for the three months ended March 31, 2026 (in thousands, except per share data):

 

       Weighted-average 
   Shares   price 
Unvested as of December 31, 2025   9,862   $1.24 
Granted   49    0.84 
Vested   (692)   1.21 
Forfeited   (2,122)   1.38 
Unvested as of March 31, 2026  7,097   $1.20 

 

During the three months ended March 31, 2026, the Company granted 49,000 shares to non-executive employees. These shares were valued based on the closing price of our common stock on the dates of grant and vest immediately or over three years.

 

As of March 31, 2026, unrecognized share-based compensation related to RSUs was $4.4 million, which will be expensed over the next 1.8 years. Unrecognized share-based compensation related to executive PSUs was $0.5 million, which will be expensed over the next 0.2 years, of which $0.1 million relates to shares probable to vest.