v3.26.1
Stock Award Plans and Stock-based Compensation
6 Months Ended
Jun. 30, 2026
Share-Based Payment Arrangement [Abstract]  
Stock Award Plans and Stock-based Compensation

Note 9 — Stock Award Plans and Stock-Based Compensation

 

As of June 30, 2026, there were 2,892,668 shares available for issuance under the Myomo, Inc. 2018 Stock Option and Incentive Plan (the “2018 Plan”). On January 1 of each year, the number of shares of common stock reserved and available for issuance under the 2018 Plan will cumulatively increase by 4% of the number shares of common stock outstanding on the immediately preceding December 31 or such lesser number of shares of common stock determined by management in consultation with members of the Board of Directors, including the compensation committee of the Board of Directors. On January 1, 2026, 1,538,854 shares were added to the share reserve under the 2018 Plan.

 

 

Recipients of awards of restricted stock units typically sell shares in the open market to cover their individual tax liabilities and remit the proceeds to the Company, which offsets withholding taxes paid by the Company. In certain circumstances, stock awards may be net share settled upon vesting to cover the required employee statutory withholding taxes and the remaining amount is converted into shares based upon their share-value on the date the award vests. In such instances, these payments of employee withholding taxes are presented in the statements

of cash flows as a financing activity. There were 243,709 shares withheld to satisfy employee's statutory tax with holding obligations that had a net value of $243,700 during the three and six months ended June 30, 2026.

 

During the three months ended June 30, 2026 and 2025, 968,607 and 644,149 restricted stock units vested, respectively. During the six months ended June 30, 2026 and 2025, 1,063,501 and 703,180 restricted stock units vested, respectively.

Share-Based Compensation Expense

The Company accounts for stock awards to employees and non-employees based upon the fair value of the award on the date of grant. The fair value of that award is then ratably recognized as expense over the period during which the recipient is required to provide services in exchange for that award.

The Company attributes the value of stock-based compensation to operations on the straight-line method such that the expense associated with awards is evenly recognized over the vesting period.

The Company recognized stock-based compensation expense related to the issuance of stock option awards and restricted stock units to employees, non-employees and directors in the statements of operations as follows:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Cost of goods sold

 

$

174,334

 

 

$

28,005

 

 

$

221,447

 

 

$

69,723

 

Research and development

 

 

148,137

 

 

 

43,942

 

 

 

210,496

 

 

 

122,097

 

Selling, clinical, and marketing

 

 

244,588

 

 

 

101,657

 

 

 

357,081

 

 

 

193,149

 

General and administrative

 

 

475,606

 

 

 

221,285

 

 

 

850,889

 

 

 

550,124

 

Total

 

$

1,042,665

 

 

$

394,889

 

 

$

1,639,913

 

 

$

935,093

 

 

As of June 30, 2026, there was no unrecognized compensation cost related to unvested stock options.

As of June 30, 2026, there was approximately $3,391,900 of unrecognized compensation expense related to unvested restricted stock units that is expected to be recognized over a weighted-average period of 1.69 years.