v3.26.3
Stock-Based Compensation
 6 Months Ended
Jun. 30, 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 six months ended June 30, 2026 and 2025:

 

  

Six Months Ended

June 30, 2026

  

Six Months Ended

June 30, 2025

 
Risk-free interest rate   3.72%   4.0%
Expected term (in years)   6.0    6.0 
Expected volatility   98.58%   97.6 — 108.6%
Expected dividend yield   0%   0%

 

The weighted average grant-date fair value per share of stock options granted during the six months ended June 30, 2026 and 2025 was $0.72 and $1.89, respectively.

 

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   (143,021

)

  $3.61           
Outstanding at June 30, 2026*   3,848,739   $24.58    5.1   $— 
Vested and expected to vest at June 30, 2026   3,848,739   $24.58    5.1   $— 
Exercisable at June 30, 2026   3,015,442   $30.83    4.1   $— 

 

* Options outstanding on June 30, 2026 under the 2021 Plan and 2017 Plan were 3,008,631 and 885,108, 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 $598 and $ 1,344 for the three and six months ended June 30, 2026, respectively. The Company recorded stock-based compensation expense relating to option awards with service conditions of $1,729 and $3,458 for the three and six months ended June 30, 2025, respectively. Unrecognized compensation cost as of June 30, 2026 for options issued with service conditions was $790 and will be recognized over an estimated weighted-average amortization period of 1.15 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*   (240,659)  $7.32 
Forfeited   (45,164)  $7.15 
Outstanding at June 30, 2026   456,499    2.03 

 

*During the six months ended June 30, 2026, 240,659 RSUs vested. Upon settlement of these awards, the Company withheld 5,958 shares to satisfy employee tax withholding obligations. Accordingly, 234,701 net shares were issued to employees. In addition, there were 125,912 RSUs that vested in Q1 and Q2 2026 and the related shares of common stock will be issued and delivered subsequent to June 30, 2026. There were also 3,248 RSUs that were issued in Q1 2026 but fully vested in Q4 2025.

 

The Company recorded stock-based RSU compensation expense of $238 and $712 for the three months ended June 30, 2026 and 2025, respectively. For the six months ending June 30, 2026 and 2025, stock-based compensation expense relating to RSUs was $855 and $1,612, respectively. As of June 30, 2026, the total unrecognized RSU compensation expense was $447 to be recognized over a weighted-average period of 0.59 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 June 30, 2026, none of the MCUs were forfeited as a result of the participant’s termination of continuous service. Stock-based compensation expense for the remaining 28,665 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 and $16 for the three and six months ended June 30, 2026.

 

Stock-Based Compensation Expense

 

Stock-based compensation expense follows:

 

   2026   2025   2026   2025 
   Three Months Ended June 30,   Six Months Ended June 30, 
   2026   2025   2026   2025 
Cost of revenues  $19   $76   $84   $139 
Research and development   24    197    182    386 
Selling, general and administrative   801    2,175    1,949    4,560 
Stock-based compensation expense  $844   $2,448   $2,215   $5,085