v3.26.3
Stock-Based Compensation
 3 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation

15. Stock-Based Compensation

 

There have been no material changes in the Company’s stock-based compensation since December 31, 2025, except as disclosed below. Refer to Note 16 – Stock-Based Compensation in the Company’s 2025 Annual Report on Form 10-K for additional information and definitions of certain terms used in this Note.

 

Stock Option Valuation

 

Awards with Service Conditions

 

The following table presents, on a weighted average basis, the assumptions used in the Black-Scholes option-pricing model to determine the grant-date fair value of stock options granted during the three months ended March 31, 2026 (no stock options were granted during the three months ended March 31,2025):

 

Risk-free interest rate   3.72%
Expected term (in years)   6.0 
Expected volatility   98.58%
Expected dividend yield   0%

 

The weighted average grant-date fair value per share of stock options granted during the three months ended March 31, 2026 was $0.72.

 

The following table summarizes option activity with service and performance conditions under the 2021 Plan and the 2017 Plan:

 

   Options   Weighted Average Exercise Price   Weighted Average Contract Term   Aggregate Intrinsic Value 
Outstanding at January 1, 2026   3,941,760   $24.12           
Granted   50,000   $1.20           
Exercised   —   $—           
Forfeited/Expired   (46,048)  $3.62           
Outstanding at March 31, 2026   3,945,712   $24.07    6.2   $87,750 
Vested and expected to vest at March 31, 2026   3,945,712   $24.07    6.2   $87,750 
Exercisable at March 31, 2026   2,632,313   $34.99    4.9   $— 

 

* Options outstanding on March 31, 2026 under the 2021 Plan and 2017 Plan were 3,105,284 and 885,428, respectively, including 45,000 options with performance and service conditions.

 

The aggregate intrinsic value of options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s Class A common stock for those options that had exercise prices lower than the fair value of Class A common stock.

 

 

The Company recorded stock-based compensation expense relating to option awards with service and performance conditions of $746 and $1,729 for the three months ended March 31, 2026 and 2025, respectively. Unrecognized compensation cost as of March 31, 2026 for options issued with service conditions was $1,598 and will be recognized over an estimated weighted-average amortization period of 1.49 years.

 

Restricted Stock Units (“RSU”)

 

The following table summarizes activity related to RSU stock-based payment awards under the 2021 Plan:

 

  

Number of

Shares

  

Weighted

Average

Grant Date Fair Value

 
Outstanding at January 1, 2026   643,859   $4.48 
Granted   98,463   $1.30 
Vested*   (108,469)  $9.21 
Forfeited   (9,731)  $11.69 
Outstanding at March 31, 2026   624,122    3.04 

 

* During the three months ended March 31, 2026, 108,489 RSUs vested. Upon settlement of these awards, the Company withheld 171 shares to satisfy employee tax withholding obligations. Accordingly, 108,318 net shares were issued to employees. In addition, there were 124 RSUs that vested on March 6, 2026 and the related shares of common stock will be issued and delivered subsequent to March 31, 2026.

 

The Company recorded stock-based RSU compensation expense of $617 and $900 for the three months ended March 31, 2026 and 2025, respectively. As of March 31, 2026, the total unrecognized RSU compensation expense was $894 to be recognized over a weighted-average period of 0.84 years.

 

Stock Units with Market Condition Vesting

 

In July 2023, the Company granted 174,500 market condition stock unit awards (“MCUs”) under the 2021 Plan to certain members of management. The awards are scheduled to vest over a period of one to three years from the grant date based on continuous employment and specified market conditions based on the Company’s stock price at the time of vest. As of March 31, 2026, 145,833 of the MCUs were forfeited as a result of the participant’s termination of continuous service. Stock-based compensation expense for the remaining 28,667 MCUs is being recognized over the requisite service period based on the award’s fair value on the grant date. The Company recorded stock-based compensation expense relating to MCUs of $8 for the three months ended March 31, 2026.

 

Stock-Based Compensation Expense

 

Stock-based compensation expense follows:

 

   2026   2025 
   3 Months Ended March 31, 
   2026   2025 
Cost of revenues  $65   $63 
Research and development   158    188 
Selling, general and administrative   1,148    2,386 
Stock-based compensation expense  $1,371   $2,637