Stock-Based Compensation |
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| Stock-Based Compensation | 9. Stock-Based Compensation Stock Option Exchange ProgramOn April 27, 2026, the Company commenced an offer to exchange certain eligible stock options held by eligible employees of the Company for new stock options (the “Exchange Offer”). Members of the Company’s board of directors, the Company’s executive officers at the EVP-level and above and past or present advisers, consultants, contractors or former employees of the Company were not eligible to participate. The Exchange Offer expired on May 26, 2026. Under the Exchange Offer, 157 eligible employees elected to exchange, and the Company accepted for cancellation eligible stock options to purchase an aggregate of 1,376,937 shares of our common stock, representing approximately 94.6% of the total shares of common stock underlying eligible options. Immediately following the expiration of the Exchange Offer, the Company granted replacement stock options to purchase an aggregate of 686,137 shares of our common stock. The exercise price of the replacement stock options was $3.00 per share, which was the closing price of the Company’s common stock on May 26, 2026. The replacement stock options are subject to new vesting schedules based on continued service. The exchange of stock options was subject to modification accounting under ASC 718. Modifications to share-based awards were treated as an exchange of the original award for a new award with total compensation equal to the grant-date fair value of the original award plus any incremental value of the modification. The incremental value was based on the excess of the fair value of the modified award over the fair value of the original award immediately before the modification, calculated using the lattice option pricing model.The incremental share-based compensation resulting from the modification was $0.2 million, which will be recognized together with any unrecognized compensation cost remaining on the exchanged options over the remaining requisite service period of the modified awards. Stock Option ValuationThe weighted average assumptions that the Company used in a Black-Scholes pricing model to determine the fair value of stock options granted to employees, non-employees and directors were as follows:
The following table summarizes stock option activity for the six months ended June 30, 2026:
The weighted average grant-date fair value per share of stock options granted outside the stock option exchange program during the six months ended June 30, 2026, and 2025 was $3.14 and $5.86, respectively. The total grant date fair value of options vested during the six months ended June 30, 2026 and 2025 was $5.1 million and $18.8 million, respectively. Total intrinsic value of options exercised during the six months ended June 30, 2026 and 2025 was $0.1 million and $6.9 million, respectively. Restricted Stock UnitsThe following table summarizes the Company’s RSU activity for the six months ended June 30, 2026:
(1) Includes 227,667 vested shares for the six months ended June 30, 2026, that were not distributed until July 2026. The total grant date fair value of RSUs vested during the six months ended June 30, 2026 and 2025 was $11.1 million and $11.1 million, respectively. The total distribution date fair value of RSUs distributed during the six months ended June 30, 2026 and 2025 was $4.3 million and $3.9 million, respectively. Performance-Based Restricted Stock UnitsThe Company granted PSU awards in 2024. PSU vesting and expense recognition is based on achievement of specific performance goals within certain time periods specified in the respective PSU award agreements. PSU awards that are not achieved within specific time periods are forfeited. As of December 31, 2025, the performance periods for all PSUs issued in 2024 had expired and all PSUs were forfeited. Stock-Based Compensation ExpenseStock-based compensation expense recognized by award type was as follows:
Stock-based compensation expense by classification included within the Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income (Loss) was as follows:
As of June 30, 2026, the Company had an aggregate of $44.1 million of unrecognized stock-based compensation expense related to stock options and RSU grants, which is expected to be recognized over a weighted average period of 1.95 years. |
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