Stock-Based Compensation

3 Months Ended

Mar. 31, 2025

Stock-Based Compensation

Stock-Based Compensation

(8) Stock-Based Compensation

The Company has two equity incentive plans: the 2012 Stock Incentive Plan and the Amended and Restated 2019 Equity Incentive Plan. New awards can only be granted under the Amended and Restated 2019 Equity Incentive Plan (the “Plan”). At March 31, 2025, 525,112 shares of common stock were available for future issuances under the Plan. The Plan is subject to an annual increase, subject to prior approval by the Company’s board of directors, equal to the lesser of (i) 432,442 shares, (ii) 4% of the shares outstanding on the last day of the immediately preceding fiscal year and (iii) such smaller number of shares as determined by the board of directors. 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 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 the accompanying consolidated statements of operations and comprehensive loss (in thousands):

	Three months ended March 31,
	2025		2024
Sales and marketing	$	284	$	373
General and administrative		611		573
Research and development		149		156
Total stock‑based compensation	$	1,044	$	1,102

Stock Options

The Company’s stock options vest based on the terms in each award agreement and generally vest over four years and have a term of 10 years.

The following table summarizes stock option activity:

				Weighted
				average
		Weighted		remaining
	Number of	average exercise		contractual term
	shares	price per share		(years)
Outstanding at January 1, 2025	2,119,183	$	10.92
Granted	434,800		2.72
Exercised	—		—
Canceled/forfeited	(18,685)		10.21
Outstanding at March 31, 2025	2,535,298	$	9.52	6.33
Vested and expected to vest at March 31, 2025	2,474,480	$	9.65	6.25
Exercisable at March 31, 2025	1,745,555	$	11.36	5.06

Included in outstanding options at March 31, 2025 were 301,108 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 March 31, 2025, the aggregate intrinsic value of both outstanding options and exercisable options was $0.

The weighted average grant-date fair value per share of options granted was $1.85 during the three months ended March 31, 2025. The aggregate intrinsic value of options exercised was $0 for the three months ended March 31, 2025. At March 31, 2025, the total unrecognized compensation expense related to unvested employee and nonemployee stock

option awards was $2.6 million, which is expected to be recognized in expense over a weighted-average period of approximately 2.7 years.

The fair value of each option was estimated on the date of grant using the Black-Scholes option pricing model and the weighted average assumptions in the table below:

	Three months ended March 31,
	2025
Expected dividend yield	—
Expected volatility	73.1	%
Risk‑free interest rate	4.31	%
Expected term (in years)	6.09

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.

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

	Number of
	shares
Outstanding at January 1, 2025	732,288
Granted	484,950
Vested	(198,280)
Canceled/forfeited	(23,975)
Outstanding at March 31, 2025	994,983

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

	Number of
	shares
Outstanding at January 1, 2025	216,500
Granted	—
Vested	—
Canceled/forfeited	—
Outstanding at March 31, 2025	216,500

Included in outstanding RSUs at March 31, 2025 were 98,521 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 $2.78 during the three months ended March 31, 2025. The aggregate intrinsic value of RSUs outstanding was $1.5 million at March 31, 2025. The total unrecognized compensation expense at March 31, 2025 related to RSUs was $4.5 million, which is expected to be recognized in expense over a weighted-average period of approximately 2.9 years.