We issue equity awards to our employees and non-employees in the form of stock options, restricted stock units (“RSUs”) and performance based RSUs (“PRSUs”). Additionally, we also offer an employee stock purchase plan (“ESPP”) to our eligible employees. We use Black-Scholes option pricing model to value our stock options granted and the estimated shares to be purchased under the ESPP. For both RSUs and PRSUs, we use our common stock price, which is the last reported sales price on the grant date to value those securities.

In general, we recognize stock-based compensation expense on a straight-line basis over the requisite service period and records forfeitures as they occur. For PRSUs, we use the graded vesting method to calculate the stock-based compensation expense. At each reporting period, we would recognize and adjust the stock-based compensation expense based on its probability assessment in meeting its PRSUs' performance conditions.

The following table summarizes the total stock-based compensation expense, by operating expense category, recognized in the Condensed Consolidated Statements of Operations for the periods presented below (in thousands).


	Fiscal Quarters Ended				Fiscal Years-to-Date Ended
	September 28, 2025		September 29, 2024		September 28, 2025		September 29, 2024
Cost of revenue	$	280	$	101	$	757	$	196
Research and development	5,754		5,914		19,050		19,771
Selling, general and administrative(1)	5,803		10,707		18,166		27,447
Restructuring cost	—		111		—		1,216
Total stock-based compensation expense	$	11,837	$	16,833	$	37,973	$	48,630

(1) During the quarter ended June 30, 2024, we engaged a consulting company for its services and issued RSUs in exchange for its services. In connection with this service agreement, we recorded approximately $4.4 million and $9.1 million of stock-based compensation expense for the fiscal quarter and fiscal year-to-date ended September 29, 2024, respectively.

For the fiscal years-to-date ended September 28, 2025 and September 29, 2024, we capitalized $0.6 million and $2.4 million, respectively, of stock-based compensation as property and equipment, net on the Condensed Consolidated Balance Sheets. There was no recognized tax benefit related to stock-based compensation for the periods presented. In addition, we accrued a $1.4 million of bonus to be settled in equity awards as accrued compensation on the Condensed Consolidated Balance Sheet as of September 28, 2025.

As of September 28, 2025, there was approximately $101.8 million of unrecognized stock-based compensation expense related to unvested equity awards, which are expected to be recognized over a weighted-average period of 3.0 years. As of September 28, 2025, there was approximately $0.6 million of unrecognized stock-based compensation related to the ESPP, which is expected to be recognized over a period of 1.2 years.

The following table summarizes stock option activities for the fiscal quarter ended September 28, 2025 (in thousands, except share and per share amount).


	Number of Options Outstanding	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value (1) (2)
Balances as of December 30, 2024	1,751,118	$	10.05

Exercised	(337,735)	9.28			$	1,632
Forfeited	(158,676)	13.83
Balances as of September 28, 2025	1,254,707	$	9.78	5.5	$	1,269


(1)			The intrinsic value of options exercised is based upon the value of our stock at exercise.
(2)			The aggregate intrinsic value of the stock options outstanding as of September 28, 2025 represents the value of our closing stock price at $10.09 on the last trading day of the quarter ended September 28, 2025 in excess of the exercise price multiplied by the number of options outstanding.

Unvested early exercised stock options which are subject to repurchase by us are not considered participating securities as those shares do not have non-forfeitable rights to dividends or dividend equivalents. Unvested early exercised stock options are not considered outstanding for purposes of the weighted average outstanding share calculation until they vest.

As of September 28, 2025, 6,154 shares remained subject to our right of repurchase as a result of early exercised stock options. The remaining liability related to early exercised shares as of September 28, 2025 was immaterial and was recorded in other current liabilities in the Condensed Consolidated Balance Sheet.

The following table summarizes RSUs and PRSUs activities for the fiscal quarter ended September 28, 2025 (in thousands, except share and per share amount).


	RSUs			PRSUs
	Number of Shares Outstanding	Weighted Average Grant Date Fair Value		Number of Shares Outstanding	Weighted Average Grant Date Fair Value
Issued and unvested shares balances as of December 30, 2024	11,154,455	$	9.61	2,017,646	$	7.71
Granted	6,030,359	7.95		1,537,067	7.44
Vested	(3,731,405)	9.36		(227,679)	8.31
Forfeited	(1,914,691)	9.91		(1,218,603)	7.73
Issued and unvested shares outstanding as of September 28, 2025	11,538,718	$	8.77	2,108,431	$	7.43

In connection with the 2024 Restructuring Plan (as defined in Note 13 “Restructuring Costs”), there was one equity award modification in May 2024, which accelerated the vesting condition of a former executive’s RSUs as a part of his

consulting and separation agreement. During the fiscal quarter ended September 29, 2024, we recognized an immaterial amount of stock-based compensation expense related to the equity modifications. For fiscal year-to-date ended September 29, 2024, we recognized $1.3 million of stock-based compensation expense related to the modifications for the fiscal year-to-date ended September 29, 2024.

For the fiscal year-to-date ended September 28, 2025, there was one equity award modification, which extended the exercise period for the vested options. We did not have an equity modification during the fiscal quarter ended September 28, 2025. For fiscal year-to-date ended September 28, 2025, we recognized an immaterial amount of stock-based compensation related to the equity award modification.