STOCK-BASED COMPENSATION |
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| Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| STOCK-BASED COMPENSATION |
STOCK PLANS 2011 Equity Incentive Plan In 2011, we adopted the 2011 Equity Incentive Plan (the “2011 Plan”). The 2011 Plan provided for the grant of stock-based awards to employees, directors, and non-employees under terms and provisions established by the Board of Directors. The 2011 Plan allowed for the grant of incentive stock options or nonqualified stock options, as well as restricted stock unit (“RSU”) awards, restricted stock awards (“RSAs”), and stock appreciation rights. Only incentive and nonqualified stock options were granted under the 2011 Plan. Employee stock option awards generally vested 25% on the first anniversary of the grant date with the remaining shares subject to the option vesting ratably over the next three years subject to the employee’s continued service with the Company. Options generally expire after 10 years. Effective upon our initial public offering in 2017, the 2011 Plan was replaced by the 2017 Incentive Plan. 2017 Incentive Plan In November 2017, our Board of Directors and stockholders adopted our 2017 Incentive Plan (the “2017 Plan”). The remaining shares available for issuance under our 2011 Plan became reserved for issuance under the 2017 Plan. Our 2017 Plan provides for the grant of Class A incentive stock options to employees and for the grant of nonqualified stock options, stock appreciation rights, RSAs, RSU awards, performance restricted stock unit (“PSU”) awards, performance cash awards, and other forms of stock awards to employees, directors, and consultants. Employee stock option awards generally begin to vest six months after the grant date with the remaining shares subject to the option vesting ratably over the next 30 months. Options generally expire after 10 years. RSU awards made to employees generally vest ratably on a quarterly basis subject to the employee’s continued service with the Company. PSU awards made to employees generally vest on a quarterly basis following the end of the performance period, subject to the employee’s continued service with the Company. As of August 1, 2026, the number of shares authorized for issuance under the 2017 Plan was 56,900,610 shares of Class A common stock, and the number of shares available for grant was 4,332,383. The following table summarizes the shares available for grant under the 2017 Plan:
2019 Inducement Plan In October 2019, our Board of Directors adopted our 2019 Inducement Plan (the “2019 Plan”). Our 2019 Plan provides for the grant of Class A nonqualified stock options and RSU awards to individuals who satisfy the standards for inducement grants under the relevant Nasdaq Stock Market rules. As of August 1, 2026, the number of shares authorized for issuance under the 2019 Plan was 10,750,000 shares of Class A common stock and the number of shares available for grant was 2,001,622. STOCK OPTIONS Stock option activity under the 2011 Plan, 2017 Plan, and 2019 Plan was as follows:
There were no options granted during fiscal 2026 or 2025. The weighted-average grant date fair value of options granted during fiscal 2024 was $2.09 per share. The total grant date fair value of options that vested during fiscal 2026, fiscal 2025, and fiscal 2024 was $4.9 million $7.3 million and $7.1 million, respectively. The aggregate intrinsic value of options exercised during fiscal 2026, fiscal 2025, and fiscal 2024 was $0.8 million, $0.4 million, $0.1 million, respectively. The aggregate intrinsic value of options exercised is the difference between the fair value of the underlying common stock on the date of exercise and the exercise price for in-the-money stock options. RESTRICTED STOCK UNIT AWARDS Employee RSUs are granted under the 2017 Plan and 2019 Plan, settle into Class A common stock, and generally vest ratably on a quarterly basis subject to the employee’s continued service with the Company. RSU award activity under the 2017 Plan and 2019 Plan was as follows:
(1) This amount includes shares withheld for taxes upon vesting, which are returned to the respective equity incentive plan and become available for future grant. PERFORMANCE RESTRICTED STOCK UNIT AWARDS Beginning in fiscal 2025, the Compensation Committee approves PSU awards to be granted to certain employees in the first quarter of a given fiscal year. These PSU awards vest in multiple tranches over a three-year period. Each PSU award represents a contingent right to receive one share of Class A common stock. The awards have both service-based and performance-based vesting conditions. The actual number of shares earned on vesting typically ranges from 0% to 150% of the target number granted, depending on the attainment of specified performance-based metrics during the performance period, which is the given fiscal year. PSU award activity under the 2017 Plan was as follows:
(1) Performance adjustment reflects incremental PSUs earned as a result of the attainment of the original award’s specified performance-based metrics. (2) Forfeited includes shares withheld for taxes upon vesting, which are returned to the 2017 Plan and become available for future grant. STOCK-BASED COMPENSATION EXPENSE Stock-based compensation expense for awards granted to employees were $46.4 million, $56.7 million, and $76.8 million for fiscal 2026, fiscal 2025, and fiscal 2024, respectively. Stock-based compensation expense is included in selling, general, and administrative expenses in the consolidated statements of operations and comprehensive loss. As of August 1, 2026, the total unrecognized compensation expense related to unvested awards, net of estimated forfeitures, was $20.8 million, which are expected to be recognized over an estimated weighted average period of 0.83 years. The Company recognized no income tax benefit from stock-based compensation during fiscal 2026, fiscal 2025, and fiscal 2024 as the Company currently maintains a full valuation allowance against its net deferred tax assets. Stock-based compensation expense related to RSU awards is recorded, net of forfeitures, over the requisite service period using the straight-line method. Stock-based compensation expense related to PSU awards is recorded under the accelerated method. For PSU awards without a market-based vesting condition, stock-based compensation is adjusted in future periods for subsequent changes in the expected outcome of the performance related conditions. For PSU awards with a market-based vesting condition, stock-based expense is recorded by estimating the fair value of the award using a Monte Carlo simulation and using an accelerated attribution method over the lesser of the derived performance periods or explicit achievement of market-based condition. Stock-based compensation expense related to stock options is recorded by estimating the fair value of stock-based awards using the Black-Scholes option pricing model and amortizing the fair value of the stock-based awards granted over the applicable vesting period of the awards on a straight-line basis. The fair value of stock options granted in fiscal 2024 to employees was estimated at the grant date using the Black-Scholes option-pricing model with the following assumptions:
There were no PSUs with market-based vesting conditions granted during fiscal 2026 or fiscal 2024. The following assumptions are used to establish the fair value of the Company’s PSUs with market-based vesting conditions:
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