Stock-based compensation expense for each employee and director is presented in the same statement of operations caption as their cash compensation. Stock-based compensation expense by statement of operations caption and the related income tax benefit were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2026		2025		2026		2025
Cost of sales	$	12	$	12	$	25	$	28
Research and development expenses	97		124		236		282
Selling, general and administrative expenses:
Employees	145		1,217		542		2,493
Outside directors	267		296		486		630
Total employee and director stock-based compensation expense	$	521	$	1,649	$	1,289	$	3,433
Income tax benefit	$	100	$	185	$	262	$	432

Non-vested restricted stock award activity was as follows:


	Shares (in thousands)	Weighted-Average Grant Date Fair Value
Non-vested at December 31, 2025	494	$	8.25
Granted	160	4.03
Vested	(295)	8.35
Forfeited	(77)	6.39
Non-vested at June 30, 2026	282	$	6.33

As of June 30, 2026, we expect to recognize $1.7 million of total unrecognized pre-tax stock-based compensation expense related to non-vested restricted stock awards over a weighted-average life of 1.3 years.


	Shares (in thousands)	Weighted-Average Grant Date Fair Value
Non-vested at December 31, 2025	744	$	2.16
Granted	120	2.56
Vested	—	—
Forfeited	(156)	2.85
Non-vested at June 30, 2026	708	$	2.00

The assumptions we utilized in the Monte Carlo simulation model and the resulting weighted average fair value of performance stock grants were the following:


	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
Weighted average fair value of grants	$	2.56		$	2.24		$	2.56		$	2.24
Risk-free interest rate	4.10		%	3.84		%	4.10		%	3.84		%
Expected volatility	54.00		%	58.00		%	54.00		%	58.00		%
Expected life in years	3.47			2.63			3.47			2.63

As of June 30, 2026, we expect to recognize $1.0 million of total unrecognized pre-tax stock-based compensation expense related to non-vested performance stock awards over a weighted-average period of 2.4 years.


	Number of Options (in thousands)	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2025	856	$	24.29
Granted	10	4.02
Exercised	—	—			$	—
Forfeited/canceled/expired	(122)	$	27.07
Outstanding at June 30, 2026 (1)	744	$	23.57	5.32	$	482
Vested and expected to vest at June 30, 2026 (1)	744	$	23.57	5.32	$	—
Exercisable at June 30, 2026 (1)	446	$	36.86	2.68	$	—

(1)The aggregate intrinsic value represents the total pre-tax value (the difference between our closing stock price on the last trading day of the first quarter of 2026 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had they all exercised their options on June 30, 2026. This amount will change based on the fair market value of our stock.

The assumptions we utilized in the Black-Scholes pricing model and the resulting weighted average fair value of stock option grants were the following:


	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
Weighted average fair value of grants	$	2.21		$	—		$	2.21		$	—
Risk-free interest rate	4.24		%	—		%	4.24		%	—		%
Expected volatility	54.21		%	—		%	54.21		%	—		%
Expected life in years	5.75			0.00			5.75			0.00

As of June 30, 2026, we expect to recognize $0.4 million of total unrecognized pre-tax stock-based compensation expense related to non-vested stock options over a remaining weighted-average life of 2.5 years.