SHARE-BASED COMPENSATION

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

SHARE-BASED COMPENSATION

8. 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 statements of operations:

Share-based compensation expense	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2024		2023		2024		2023
Research and development expense	$	782	$	2,194	$	3,378	$	4,438
Sales, marketing, general and administrative expense		1,644		2,497		6,144		7,068
	$	2,426	$	4,691	$	9,522	$	11,506

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 September 30, 2024 (in thousands, except per share data):

					Weighted-
			Weighted-		Average
			Average		Remaining		Aggregate
Options			Exercise		Contractual		Intrinsic
	Shares		Price		Term (years)		Value
Outstanding as of September 30, 2024		666	$	1.43		3.8	$	129
Exercisable as of September 30, 2024		666	$	1.43		3.8	$	129

As of September 30, 2024, 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 nine months ended September 30, 2024 (in thousands, except per share data):

				Weighted-Average
	Shares			Price
Unvested as of December 31, 2023		9,983		$	3.09
Granted		8,021			1.32
Vested		(4,047	)		4.19
Forfeited		(1,258	)		2.55
Unvested as of September 30, 2024		12,699		$	1.68

During the nine months ended September 30, 2024, the Company granted 4,170,000 shares to non-executive employees for annual and short-term incentive awards. Additionally, the Company granted 80,000 shares to non-executive employees for new hire grants. 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 nine months ended September 30, 2024, the Company granted 3,771,000 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 September 30, 2024, unrecognized share-based compensation related to RSUs was $7.5 million, which will be expensed over the next 2.1 years. Unrecognized share-based compensation related to executive PSUs was $3.6 million, which will be expensed over the next 1.1 years. Unrecognized share-based compensation related to the non-executive PSUs was $0.6 million, which will be expensed over the next 0.8 years.