Stock-Based Compensation

12 Months Ended

Dec. 31, 2024

Share-Based Payment Arrangement [Abstract]

Stock-based compensation expense included in the Consolidated Statements of Operations and Comprehensive Loss was as follows:


	For the years ended December 31,
	2024		2023
Stock options	$	264	$	2,468
Performance-based restricted stock units	8,332		—
Restricted stock units	10,184		11,589
Total	$	18,780	$	14,057

The stock compensation has been recorded in cost of goods sold, research and development expenses and selling, general and administrative expenses.

Stock options

The following table summarizes stock options activity during the years ended December 31, 2024 and 2023:


	Units	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (years)
Options Outstanding at December 31, 2022	4,344,812	$	4.37	7.7
Granted	649,865	2.27
Cancelled/Forfeited	(504,550)	2.39
Exercised	(262,500)	1.35
Options Outstanding at December 31, 2023	4,227,627	4.47		5.2
Granted	—	—
Cancelled/Forfeited	(225,000)	1.39
Exercised	(44,000)	1.28
Options Outstanding at December 31, 2024	3,958,627	4.68		4.0
Options Exercisable at December 31, 2024	3,958,627	4.68		4.0

The assumptions used to determine the fair value of stock options granted in 2023 are as follows:


	2023
Volatility	62.60	%
Risk free interest rate	4.07	%
Expected life (years)	3.00
Dividend yield	0	%

The weighted average grant date fair value of all stock options granted was $1.02 per option for the year ended December 31, 2023. There were no stock options granted for the year ended December 31, 2024.

Restricted Stock Units (“RSU”)

The following table summarizes RSU activity during the years ended December 31, 2024 and 2023:


	Units	Weighted-Average Grant-Date Fair Value
RSUs Outstanding at December 31, 2022	2,995,890	$	7.89
Granted	4,804,057	3.42
Cancelled/Forfeited	(898,525)	4.86
Vested	(1,453,964)	7.39
RSUs Outstanding at December 31, 2023	5,447,458	4.58
Granted	12,135,118	1.87
Cancelled/Forfeited	(1,238,231)	2.25
Vested	(2,371,609)	6.05
RSUs Outstanding at December 31, 2024	13,972,736	2.18

As of December 31, 2024, there was $25,151 of unrecognized compensation expense attributable to unvested RSUs, expected to be recognized over a weighted-average remaining vesting period of 2.2 years.

Performance-Based Restricted Stock Units (“PRSU”)

The following table summarizes PRSU activity during the year ended December 31, 2024:


	Units	Weighted-Average Grant-Date Fair Value
PRSUs Outstanding at December 31, 2023	—	$	—
Granted	9,192,500	1.92
Cancelled/Forfeited	(387,500)	1.74
Vested	—	—
PRSUs Outstanding at December 31, 2024	8,805,000	1.93

During the third quarter of 2024, the Company granted contingent shares to select key executives that may be earned based on the Company’s total shareholder return (“TSR”) over a two and three-year period following the grant date. TSR awards are paid out in stock at the end of the vesting period based on the Company’s stock performance. The performance is measured by determining the percentile rank of the total shareholder return of the Company’s common stock relative to the TSR of the Russell 2000 index peer group for the two and three-year period following the grant date. This peer group includes the entire Russell 2000 index as it existed at the beginning of the performance period, excluding any companies that were removed from the index during the performance period. The payment of awards following the two and three-year award period is based on performance achieved in accordance with the scale set forth in the plan agreement and may range from 0% to 200% of the initial grant. The fair value of the TSR awards is estimated using a Monte Carlo simulation in an option pricing framework.

The following summarizes the key assumptions used to estimate the fair value of the TSR awards that were granted, and the resulting weighted average grant date fair value.


	TSR awards
Company share price	$	1.74
Company volatility	115.3		%
Company correlation	36.1		%
Company dividend yield	—		%
Weighted average performance term	2.4 years
Weighted average risk-free interest rate	4.3		%
Peer group average volatility	54.3		%
Peer group average correlation	44.2		%
Weighted average grant date fair value	$	3.19

During the third quarter of 2024, the Company also granted shares contingent upon the achievement of certain performance milestones related to the Credit Agreement that may be earned over the performance period following the grant date. The contingent share awards (“Milestone PRSU”) are paid out in stock at the end of the vesting period based on the Company’s achievement of the performance milestones.

As of December 31, 2024, there was $8,638 of unrecognized compensation expense attributable to unvested PRSUs, expected to be recognized over a weighted-average remaining vesting period of 0.9 years.

In 2024, the Company reserved an additional 19,000,000 shares for the Amended and Restated 2020 Incentive Plan. As of December 31, 2024 and 2023, 4,552,831 and 5,015,893 shares remain for future issuance, respectively.

During the year ended December 31, 2023, the Company granted 40,000 RSUs with performance and service conditions. Stock compensation is recognized on a straight-line basis over the requisite service period of the award, which is generally the award vesting term. For awards with performance conditions, compensation expense is recognized using an accelerated attribution method over the vesting period. The performance conditions primarily relate to achievement of sales and financing targets. In June 2023, the Company modified 550,000 performance-based stock options that were issued in June 2022 and December 2022 by extending the period to meet certain performance conditions. During the year ended December 31, 2023, all performance conditions were met for these 550,000 options, therefore accelerating the vesting and respective expense.