Stock-Based Compensation |
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| Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-Based Compensation | 11. Stock-Based Compensation Stock Options A summary of stock option activity during the periods indicated is as follows:
As of June 30, 2026, there was $11.9 million of unrecognized stock-based compensation expense related to stock options which is expected to be recognized over a weighted-average period of approximately 3.1 years. In June 2026, the Company modified stock options in connection with the departure of its former Chief Financial Officer. The modification included (i) the accelerated vesting for 443,163 unvested stock options, which was accounted for as a Type III (improbable-to-probable) modification, and (ii) an extension of the post‑termination exercise periods for vested options, which was accounted for as a Type I (probable-to-probable) modification. As a result, the Company recorded an aggregate incremental fair value of approximately $0.6 million, which was recorded as stock-based compensation expense and additional paid-in-capital on the Company’s condensed consolidated statement of operations and balance sheet, respectively, as of June 30, 2026. The Company uses the Black-Scholes option pricing model to estimate the fair value of each stock option award on the date of grant. The assumptions and estimates are as follows: • Expected term - The expected term represents the period of time that stock option awards are expected to remain outstanding. The Company estimates the expected term as the midpoint between actual or expected vesting date and the contractual term. • Expected volatility - The expected volatility was derived from the historical stock volatilities of peer public companies within the Company's industry that are considered to be comparable businesses over a period equivalent to the expected term of the stock option awards, since there has been limited trading history of the Company's stock. • Risk-free interest rate - The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the date of grant for zero-coupon U.S. Treasury notes with maturities approximately equal to the stock option awards’ expected term. • Expected dividend yield - The expected dividend yield is zero as the Company has no plans to make dividend payments. The following table sets forth the weighted average assumptions used in estimating the fair value of stock option awards on the grant date:
Restricted Stock Units A summary of restricted stock unit (“RSU”) activity during the periods indicated is as follows:
As of June 30, 2026, there was $0.8 million of unrecognized stock-based compensation expense related to RSUs which is expected to be recognized over a weighted-average period of approximately 0.7 years. The total fair value of RSUs vested was $0.2 million for the six months ended June 30, 2026. Stock-Based Compensation Expense The following table summarizes the components of stock-based compensation expense resulting from the grant of stock options, RSUs and the Employee Stock Purchase Plan (“ESPP”), recorded in the Company’s condensed consolidated statement of operations and comprehensive loss (in thousands):
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