The Company has equity incentive and compensatory plans that provide for the grant of stock-based awards, including restricted stock and performance shares to employees and board members, and provide employees with the ability to purchase shares of its common stock through an employee stock purchase plan. Employee accounting applies to equity incentives and compensation granted by the Company to its own employees. When an award is forfeited prior to the vesting date, the Company recognizes an adjustment for the previously recognized expense in the period of the forfeiture.

Stock-based compensation expense is classified within the corresponding operating expense categories on the consolidated statements of operations as follows (in thousands):


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Cost of goods sold	$	—	$	1	$	—	$	2
Sales and marketing	(203)		42		(133)		145
Technology	27		662		381		719
General and administrative	2,249		2,681		3,357		3,614
Customer service and merchant fees	2		—		3		—
Total stock-based compensation	$	2,075	$	3,386	$	3,608	$	4,480

The Company's Amended and Restated 2005 Equity Incentive Plan (the "Plan") provides for the grant of restricted stock units and other types of equity awards to employees and directors of the Company. The Compensation Committee of the Board of Directors approves grants of restricted stock unit awards to the Company's officers, board members, and employees. These restricted stock unit awards generally vest over a period of three years to four years, subject to the recipient's continuing service to us.

The cost of restricted stock units is determined using the fair value of the Company's common stock on the date of the grant and compensation expense is either recognized on a straight-line basis over the vesting schedule or on an accelerated schedule when vesting of restricted stock awards exceeds a straight-line basis. The cumulative amount of compensation expense recognized at any point in time is at least equal to the portion of the grant date fair value of the award that is vested at that date.

Performance-based shares ("PSUs") granted to the Company's executive management team under the Plan are eligible to vest based on achieving specific performance metrics. To the extent any of the PSUs become earned based on the Company's achievement of the aforementioned performance metrics, such earned PSUs will vest as to one-third of the earned PSUs on each of the first, second, and third anniversaries of the grant date, subject to the recipient’s continued service through the vesting date. To be eligible to vest in any tranche of the PSUs, the Company must meet the threshold performance metrics established for the performance period. Expense is recognized as compensation cost based on the fair value on the date of grant over the performance period, taking into account the probability that the Company will satisfy the performance goals.

Stock-based compensation related to the PSUs is included in the stock-based compensation expense table above combined with the expense associated with the Company's restricted stock units, performance share options, and employee stock purchase plan. Stock-based compensation related to the PSUs was a credit of $1.8 million due to staff-related reductions and $0.8 million for the three months ended June 30, 2026 and 2025, respectively, and credits of $2.4 million and $1.3 million due to staff related reductions for the six months ended June 30, 2026 and 2025, respectively.


	Six months ended June 30, 2026
	Units	Weighted Average Grant Date Fair Value
Outstanding—beginning of year	3,037	$	8.21
Granted at fair value	3,677	4.87
Vested	(1,245)	7.64
Forfeited	(995)	9.80
Outstanding—end of period	4,474	$	6.18

Stock-based compensation related to the Performance Share Option is included in stock-based compensation expense table above combined with the expense associated with the Company's restricted stock units, PSUs, and employee stock purchase plan. Stock-based compensation related to the performance share options was $0.4 million and $0.8 million for the three months ended June 30, 2026 and 2025, respectively, and $0.9 million and $1.8 million for the six months ended June 30, 2026 and 2025, respectively.


	Units	Weighted Average Exercise Price Per Share		Weighted Average Contractual Term Remaining (Years)	Aggregate Intrinsic Value
Outstanding—beginning of year	2,250	$	53.33
Granted at fair value	—	—
Vested	—	—
Forfeited	(500)	45.00
Outstanding—end of period	1,750	$	55.71	1.22	$	—
Vested and expected to vest as of June 30, 2026	1,750	$	55.71	1.22	$	—
Vested and exercisable as of June 30, 2026	—	$	—	—	$	—

Purchases under the 2021 Employee Stock Purchase Plan (the "ESPP") during the six months ended June 30, 2026 and 2025 were 67,219 shares and 90,921 shares, respectively, at an average purchase price per share of $4.53 and $5.43, respectively. At June 30, 2026, approximately 2.5 million shares of common stock remained available under the ESPP.

Stock-based compensation related to the ESPP is included in the stock-based compensation expense table above combined with the expense associated with the Company's restricted stock units, PSUs, and performance share options. Stock-based compensation related to the ESPP was $0.1 million and $0.2 million for the three months ended June 30, 2026 and 2025, respectively and $0.3 million and $0.4 million for the six months ended June 30, 2026 and 2025, respectively.