SHARE-BASED COMPENSATION

6 Months Ended

Jun. 30, 2025

Share-Based Payment Arrangement [Abstract]

SHARE-BASED COMPENSATION

9. SHARE-BASED COMPENSATION

The Company issues share-based compensation to employees in the form of restricted stock units (RSUs), performance stock units (PSUs), and stock options. Share-based awards are accounted for by recognizing the fair value of share-based compensation expense on a straight-line basis over the service period of the award, net of estimated forfeitures. The fair value of RSUs and PSUs is determined by the closing price of common stock on the date of grant. The fair value of stock options is estimated on the grant date using the Black-Scholes option pricing model. Changes in estimated inputs or using other option valuation methods may result in materially different option values and share-based compensation expense.

The following table summarizes the amount of share-based compensation expense by line item on the condensed consolidated statements of operations:

Share-based compensation expense	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands)	2025		2024		2025		2024
Research and development expense	$	521	$	1,252	$	1,029	$	2,596
Sales, marketing, general and administrative expense		1,409		2,101		2,822		4,500
	$	1,930	$	3,353	$	3,851	$	7,096

Options Activity and Positions

The following table summarizes shares, weighted-average exercise price, weighted-average remaining contractual term, and aggregate intrinsic value of options outstanding and options exercisable as of June 30, 2025 (in thousands, except per share data):

					Weighted-
			Weighted-		Average
			Average		Remaining		Aggregate
Options			Exercise		Contractual		Intrinsic
	Shares		Price		Term (years)		Value
Outstanding as of June 30, 2025		666	$	1.43		3.0	$	129
Exercisable as of June 30, 2025		666	$	1.43		3.0	$	129

As of June 30, 2025, there is no unrecognized share-based employee compensation related to stock options.

Restricted Stock Activity and Positions

The following table summarizes activity and positions with respect to RSUs and PSUs for the six months ended June 30, 2025 (in thousands, except per share data):

				Weighted-Average
	Shares			Price
Unvested as of December 31, 2024 ¹		12,913		$	1.53
Granted		10,568			1.15
Vested		(1,681	)		1.95
Forfeited		(577	)		1.74
Unvested as of June 30, 2025		21,223		$	1.30

¹ The number of unvested RSUs and PSUs and the weighted-average price as of December 31, 2024 reported in this Note has been adjusted to 12,913 from 12,013 and to $1.53 from $1.51, respectively, as reported in Note 9 of the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, due to the correction of an administrative error. The correction resulted in no change to the previously issued financial statements and the Company deems the administrative error not material from a quantitative or qualitative perspective.

During the six months ended June 30, 2025, the Company granted 2,204,000 shares to non-executive employees for annual and short-term incentive awards. These shares are valued based on the closing price of common stock on the dates of grant and vest immediately or over three or four years.

During the six months ended June 30, 2025, the Company granted 8,347,000 shares to executive employees and directors for annual, short-term incentive, and long-term incentive awards. These shares are valued based on the closing price of common stock on the dates of grant and vest immediately, over one year, or over three years.

As of June 30, 2025, unrecognized share-based compensation related to RSUs was $11.0 million, which will be expensed over the next 2.2 years. Unrecognized share-based compensation related to executive PSUs was $6.0 million, which will be expensed over the next 0.9 years.