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SHARE-BASED COMPENSATION
 6 Months Ended
Jun. 30, 2026
Share-Based Payment Arrangement [Abstract]  
SHARE-BASED COMPENSATION

10. SHARE-BASED COMPENSATION

 

The Company issues share-based compensation to employees in the form of restricted stock units (RSUs), performance stock units (PSUs), and stock options. Share-based awards are accounted for by recognizing the fair value of share-based compensation expense on a straight-line basis over the service period of the award, net of estimated forfeitures. The fair value of RSUs and PSUs is determined by the closing price of common stock on the date of grant. The fair value of stock options is estimated on the grant date using the Black-Scholes option pricing model. Changes in estimated inputs or using other option valuation methods may result in materially different option values and share-based compensation expense.

 

The following table summarizes the amount of share-based compensation expense by line item on the condensed consolidated statements of operations:

  

(in thousands)  2026   2025   2026   2025 
Share-based compensation expense  Three Months Ended   Six Months Ended 
   June 30,   June 30, 
(in thousands)  2026   2025   2026   2025 
Research and development expense  $803   $521   $1,030   $1,029 
Sales, marketing, general and administrative expense   501    1,409    1,257    2,822 
Total Share-based compensation expense  $1,304   $1,930   $2,287   $3,851 

 

 

Options Activity and Positions

 

The following table summarizes shares, weighted-average exercise price, weighted-average remaining contractual term, and aggregate intrinsic value of options outstanding and options exercisable as of June 30, 2026 (in thousands, except per share data):

  

           Weighted-     
       Weighted-   Average     
       Average   Remaining   Aggregate 
       Exercise   Contractual   Intrinsic 
Options  Shares   Price   Term (years)   Value 
Outstanding as of June 30, 2026   37   $20.25    1.4   $      - 
                     
Exercisable as of June 30, 2026   37   $20.25    1.4   $- 

 

As of June 30, 2026, there is no unrecognized share-based employee compensation related to stock options.

 

Restricted Stock Activity and Positions

 

The following table summarizes activity and positions with respect to RSUs and PSUs for the six months ended June 30, 2026 (in thousands, except per share data):

  

       Weighted-Average 
   Shares   Price 
Unvested as of December 31, 2025   573   $18.75 
Granted   32    8.92 
Vested   (154)   17.60 
Forfeited   (187)   19.90 
Unvested as of June 30, 2026   264   $17.50 

 

During the six months ended June 30, 2026, the Company granted 26,000 shares to non-executive employees for annual and short-term incentive awards. These shares are valued based on the closing price of common stock on the dates of grant and vest immediately or over three or four years.

 

During the six months ended June 30, 2026, the Company granted 6,000 shares to non-employees as compensation for services. These shares are valued based on the closing price of common stock on the dates of grant and vest immediately.

 

As of June 30, 2026, unrecognized share-based compensation related to RSUs was $3.6 million, which will be expensed over the next 1.8 years.