Stock-Based Compensation

12 Months Ended

Dec. 31, 2025

Stock-Based Compensation

Stock-Based Compensation

(9) Stock-Based Compensation

The Company has two equity incentive plans: the 2012 Stock Incentive Plan and the Amended and Restated 2019 Equity Incentive Plan (the “Plan”). On April 3, 2025, the Company’s board of directors approved an amendment to the Plan to increase the number of authorized shares issuable under the Plan by 3,500,000 shares and eliminate the “evergreen” provision. This amendment was approved by the Company’s stockholders on May 28, 2025. New awards can only be granted under the Plan. At December 31, 2025, 3,667,106 shares of common stock were available for future issuances under the Plan. The Plan provides for the grant of incentive stock options, nonqualified stock options, restricted stock awards, restricted stock units and/or stock appreciation rights to employees, directors, and other persons, as determined by the Company’s board of directors. The Company’s stock options vest based on the terms in each award agreements and generally vest over four years and have a term of 10 years. The Company estimates forfeitures that it expects will occur and adjusts expense for actual forfeitures in the periods they occur.

The Company measures employee and nonemployee stock-based awards at grant-date fair value and records compensation expense ratably over the vesting period of the award. The Company recorded stock-based compensation expense in the following expense categories of its accompanying consolidated statements of operations and comprehensive loss (in thousands):

	Year ended December 31,
	2025		2024		2023
Sales and marketing	$	1,114	$	1,293	$	1,824
General and administrative		2,225		2,429		2,478
Research and development		457		640		730
Total stock‑based compensation	$	3,796	$	4,362	$	5,032

The following table summarizes stock option activity for the Plan:

				Weighted
				average
		Weighted		remaining
	Number of	average exercise		contractual term
	shares	price per share		(years)
Outstanding at January 1, 2023	2,071,848		11.49
Granted	212,960		10.50
Exercised	(25,428)		5.00
Canceled/forfeited	(96,927)		11.25
Outstanding at December 31, 2023	2,162,453		11.48
Granted	259,900		6.86
Exercised	(38,431)		5.88
Canceled/forfeited	(264,739)		12.24
Outstanding at December 31, 2024	2,119,183		10.92
Granted	798,200		2.11
Exercised	—		—
Canceled/forfeited	(244,524)		7.33
Outstanding at December 31, 2025	2,672,859	$	8.62	6.26
Vested and expected to vest at December 31, 2025	2,612,689	$	8.75	6.19
Exercisable at December 31, 2025	1,713,790	$	11.63	4.72

Included in outstanding options at December 31, 2025, were 356,903 stock options granted outside of the Plan. These grants were made pursuant to the Nasdaq inducement grant exception in accordance with Nasdaq listing rule 5635(c)(4). At December 31, 2025, the aggregate intrinsic value of outstanding options and exercisable options was $0.

The weighted average grant-date fair value per share of options granted was $1.43, $4.67 and $7.19 for the years ended December 31, 2025, 2024 and 2023, respectively. The aggregate intrinsic value of options exercised was $0, $41,000 and $0.1 million for the years ended December 31, 2025, 2024 and 2023, respectively. As of December 31, 2025, the total unrecognized compensation expense related to unvested employee and nonemployee stock option awards was $1.8 million, which is expected to be recognized in expense over a weighted-average period of approximately 2.6 years.

Estimating Fair Value of Stock Options

The fair value of each grant of stock options was determined by the Company using the methods and assumptions discussed below. Certain of these inputs are subjective and generally require judgment to determine.

Expected term – The expected term of stock options represents the weighted average period the stock options are expected to be outstanding. The Company uses the simplified method for estimating the expected term as provided by the Securities and Exchange Commission. The simplified method calculates the expected term as the average time to vesting and the contractual life of the options.

Expected volatility – Due to the Company’s limited operating history and lack of sufficient company-specific historical or implied volatility, the expected volatility assumption was determined by examining the historical volatilities of a group of industry peers, including the Company, whose share prices are publicly available.

Risk-free interest rate – The risk-free rate assumption is based on the U.S. Treasury instruments, the terms of which were consistent with the expected term of the Company’s stock options.

Expected dividend – The Company has not paid and does not intend to pay dividends.

The fair value of each option was estimated on the date of grant using the weighted average assumptions in the table below:

	Year ended December 31,
	2025		2024		2023
Expected dividend yield	—		—		—
Expected volatility	72.6	%	73.2	%	74.3	%
Risk‑free interest rate	4.20	%	4.29	%	3.99	%
Expected term (in years)	6.03		6.14		6.15

Restricted Stock Units

The Company has issued service-based and performance-based restricted stock units (“RSUs”). Vesting of the service-based RSUs is based on the terms in each award agreement and is generally over four years. Vesting of the performance-based RSUs is subject to continued service through 2026 and the achievement of certain performance milestones for fiscal year 2026. The amount of performance-based RSUs that will vest can range from 0% to 110% of the original number of RSUs granted. Expense for the performance-based RSUs is not recognized until the performance conditions are deemed probable of achievement. The Company has not recorded any expense related to the performance-based RSUs as the performance conditions are not deemed to be probable of achievement.

The following table summarizes the service-based RSUs for the Plan:

	Number of
	shares
Outstanding at January 1, 2023	311,991
Granted	479,585
Vested	(101,559)
Canceled/forfeited	(32,963)
Outstanding at December 31, 2023	657,054
Granted	421,725
Vested	(191,175)
Canceled/forfeited	(155,316)
Outstanding at December 31, 2024	732,288
Granted	750,350
Vested	(279,765)
Canceled/forfeited	(98,211)
Outstanding at December 31, 2025	1,104,662

The following table summarizes the performance-based RSUs for the Plan:

	Number of
	shares
Outstanding at January 1, 2023	—
Granted	250,149
Vested	—
Canceled/forfeited	—
Outstanding at December 31, 2023	250,149
Granted	—
Vested	—
Canceled/forfeited	(33,649)
Outstanding at December 31, 2024	216,500
Granted	—
Vested	—
Canceled/forfeited	—
Outstanding at December 31, 2025	216,500

Included in outstanding RSUs at December 31, 2025, were 137,417 RSUs granted outside of the Plan. These grants were made pursuant to the Nasdaq inducement grant exception in accordance with Nasdaq listing rule 5635(c)(4). The weighted average grant-date fair value per RSU granted was $2.27, $6.54 and $10.25 during the years ended December 31, 2025, 2024 and 2023, respectively. The aggregate intrinsic value of RSUs outstanding was $1.6 million, $2.9 million and $6.0 million at December 31, 2025, 2024 and 2023, respectively. The total unrecognized compensation expense at December 31, 2025 related to RSUs was $3.0 million, excluding unrecognized compensation expense associated with performance-based RSUs that are not deemed probable of achievement, which is expected to be recognized in expense over a weighted-average period of approximately 2.3 years.