In 2011, the Company approved the 2011 Stock Option Plan (the "2011 Plan") that provided for the grant of stock options to employees and nonemployees of the Company.

In July 2021, the board of directors and stockholders approved the 2021 Incentive Award Plan, (the "2021 Plan") which superseded the 2011 Plan. Under the 2021 Plan, the Company has the ability to issue incentive stock options ("ISOs"), nonqualified stock options ("NSOs"), stock appreciation rights, dividend equivalent rights, restricted stock awards, and restricted stock units ("RSUs"), including performance-based and time-based RSUs.

Stock options under the 2021 Plan can typically be granted for periods of up to ten years. For stock options granted to a grantee who, at the time the option is granted, owned stock representing more than 10% of the voting power of all classes of stock of the Company (or any parent or subsidiary of the Company), the term of the stock option may be granted for periods of up to five years. The ISOs and NSOs will be granted at a price per share not less than the grant date fair value of the shares. The exercise price of a stock option granted to a 10% stockholder shall be not less than 110% of the grant date fair value of the shares. Stock options granted to new hires generally vest over a four-year period, with 25% of the shares vesting on the first anniversary of the grant date and the remaining shares vesting in 36 equal monthly installments thereafter. Stock options granted as merit awards generally vest in 48 equal monthly installments following the grant date.

RSUs are share awards that entitle the holder to receive shares of common stock upon vesting and settlement of the awards. Time-based RSUs granted to newly hired non-executive employees generally vest over a four-year period, with 25% of the shares vesting on the first anniversary of the grant date and the remaining shares vesting in 12 equal quarterly installments thereafter. Time-based RSUs granted to newly hired executive employees generally vest over a four-year period, with shares vesting in four equal annual installments. Time-based RSUs granted to executive and non-executive employees as merit awards generally vest in 16 equal quarterly installments following the grant date.

Performance-based RSUs, which have been granted to certain executives, vest based on achievement of performance targets defined in each executive’s grant agreement. These awards generally vest over a three-year period subject to and contingent upon achievement of the performance targets. Up to 200% of the target number of shares subject to each performance-based RSU are eligible to be earned.

The Company initially reserved 5,200,000 shares of common stock for future issuance under the 2021 Plan. This initial reserve is subject to annual increase on the first day of each calendar year beginning on January 1, 2022 and ending on and including January 1, 2031. These annual increases are equal to the lesser of (i) 5% of the aggregate number of shares of common stock outstanding on the final day of the immediately preceding calendar year and (ii) such smaller number of shares of common stock as determined by the Company's board of directors (the "Board"), subject to certain limitations. Pursuant to the evergreen provision, the initial share reserve was increased by 2,674,685 and 2,546,899 shares on January 1, 2026 and 2025, respectively.

As of June 30, 2026 and December 31, 2025, there were 8,313,188 shares and 7,876,575 shares, respectively, of common stock available for issuance under the 2021 Plan.

The following table summarizes stock option activity under the 2021 Plan during the periods presented:


	Number of Shares			Weighted-Average Exercise Price		Weighted-Average Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Balances as of December 31, 2025		3,063,476		$	10.88		5.5	$	3,315
Forfeited/cancelled		(52,593	)		11.67
Exercised/released		(69,218	)		1.43
Balances as of June 30, 2026		2,941,665		$	11.09		5.2	$	1,677
Vested and exercisable as of June 30, 2026		2,835,302		$	11.21		5.2	$	1,599

During the three months ended June 30, 2026 and 2025, the Company recorded stock-based compensation expense of $0.2 million and $1.2 million related to stock option awards, respectively. During the six months ended June 30, 2026 and 2025, the Company recorded stock-based compensation expense of $0.4 million and $2.8 million related to stock option awards, respectively. The Company did not grant any stock option awards during the six months ended June 30, 2026.

The aggregate intrinsic value of stock options exercised during the six months ended June 30, 2026 was $0.3 million. The aggregate intrinsic value was calculated as the difference between the exercise prices of the underlying stock options and the fair value of the common stock on the date of exercise. As of June 30, 2026, the unrecognized stock-based compensation expense relating to unvested stock options was $0.4 million, which is expected to be recognized over a weighted-average period of approximately 0.5 years.

The following table summarizes RSU activity under the 2021 Plan during the periods presented:


	Number of Shares			Weighted-Average Grant Date Fair Value Per Share
Outstanding, December 31, 2025		4,048,888		$	4.4
Granted		2,187,658			6.3
Forfeited/cancelled		(123,036	)		5.0
Vested		(1,038,205	)		5.8
Outstanding, June 30, 2026		5,075,305		$	4.9

During the three months ended March 31, 2026, the Company granted performance-based RSUs to certain employees, the vesting of which is dependent upon the achievement of a revenue performance target. These awards, if earned, shall vest in equal, consecutive installments over three years, with the first installment vesting upon the date of determination of the level of achievement of the performance target and the accompanying number of RSUs earned. Vesting is contingent upon continued service through each subsequent vesting date. The number of shares included as "Granted" in the above table includes an estimated 0.2 million shares representing estimated achievement of performance targets.

During the three months ended June 30, 2026 and 2025, the Company recorded stock-based compensation expense of $2.6 million and $2.5 million related to the RSUs, respectively, including $0.2 million and $0.0 million related to the performance-based RSUs, respectively. During the six months ended June 30, 2026 and 2025, the Company recorded stock-based compensation expense of $5.2 million and $5.0 million related to the RSUs, respectively, including $0.3 million and $0.0 million related to the performance-based RSUs, respectively. As of June 30, 2026, the unrecognized stock-based compensation expense relating to RSUs was $21.6 million, of which $1.1 million is related to the performance-based RSUs. This expense is expected to be recognized over a weighted-average period of approximately 2.7 years.

In July 2021, the board of directors and stockholders approved the 2021 Employee Stock Purchase Plan (the "ESPP"). The ESPP permits participants to purchase shares of common stock at a discount through payroll deductions of up to a specified percentage of their eligible compensation. Shares of common stock are offered during two offering periods annually, each running for six months, with the first offering period beginning in the second quarter, and the second offering period beginning in the fourth quarter. The purchase of shares for participants in the ESPP occurs at the conclusion of each offering period.

The Company initially reserved 850,000 shares of common stock for future issuance under the ESPP. This initial reserve is subject to annual increase on the first day of each calendar year beginning on January 1, 2022 and ending on and including January 1, 2031. These annual increases shall be equal to the lesser of (i) 1% of the aggregate number of shares of common stock outstanding on the final day of the immediately preceding calendar year and (ii) such smaller number of shares of common stock as determined by the Board, subject to certain limitations. Pursuant to the evergreen provision, the initial share reserve was increased by 534,937 and 509,379 shares on January 1, 2026 and 2025, respectively.

As of June 30, 2026 and December 31, 2025, there were 2,299,981 and 1,880,211 shares of common stock available for issuance under the ESPP, respectively.

During the three and six months ended June 30, 2026, participants purchased 115,167 shares for an aggregate of $0.5 million under the ESPP. As of June 30, 2026, the Company has collected payroll withholdings of $0.1 million in the current offering period for the purchase of shares under the ESPP. The Company recorded stock-based compensation expense of $0.1 million related to the ESPP for the three months ended June 30, 2026 and 2025. The Company recorded stock-based compensation expense of $0.2 million related to the ESPP for the six months ended June 30, 2026 and 2025.

The grant date fair value of shares issuable under the ESPP was calculated using the Black-Scholes valuation model using the following assumptions:


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Expected term (in years)	0.49 – 0.50	0.49 – 0.50	0.49 – 0.50	0.49 – 0.50
Expected volatility	81.38% – 84.10%	71.55% – 72.80%	81.38% – 84.10%	71.55% – 72.80%
Risk-free interest rate	3.74% – 3.83%	4.27% – 4.47%	3.74% – 3.83%	4.27% – 4.47%
Dividend yield	–	–	–	–

The following is a summary of stock-based compensation expense by function (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Cost of goods sold	$	122	$	106	$	243	$	222
Research and development		277		702		553		1,487
Selling, general and administrative		2,564		3,033		5,020		6,376
Total stock-based compensation expense	$	2,963	$	3,841	$	5,816	$	8,085