In 2011, the Company approved the 2011 Stock Option Plan (the “2011 Plan”) that provided for the grant of stock options to employees and nonemployees of the Company.

In July 2021, the board of directors and stockholders adopted and approved the 2021 Incentive Award Plan, (the “2021 Plan”). Under the 2021 Plan, the Company has the ability to issue incentive stock options ("ISOs"), nonqualified stock options ("NSOs"), stock appreciation rights, dividend equivalent rights, restricted stock awards, and restricted stock units ("RSUs").

Stock options under the 2021 Plan can typically be granted for periods of up to ten years. For stock options granted to a grantee who, at the time the option is granted, owned stock representing more than 10% of the voting power of all classes of stock of the Company (or any parent or subsidiary of the Company), the term of the stock option may be granted for periods of up to five years. The ISOs and NSOs will be granted at a price per share not less than the fair value at the date of grant. The exercise price of a stock option granted to a 10% stockholder shall be not less than 110% of the grant date fair value of the shares. Stock options granted to new hires generally vest over a four-year period, with 25% of the shares vesting on the first anniversary of the grant date and the remaining shares vesting in 36 equal monthly installments thereafter. Stock options granted as merit awards generally vest in 48 equal monthly installments following the grant date.

RSUs are share awards that entitle the holder to receive shares of common stock upon vesting and settlement of the awards. RSUs granted to employees generally vest over a four-year period with straight-line vesting in equal amounts, either in annual or quarterly installments. RSUs granted to newly hired non-executive employees generally vest over a four-year period, with 25% of the shares vesting on the first anniversary of the grant date and the remaining shares vesting in 12 equal quarterly installments thereafter. RSUs granted to newly hired executive employees generally vest over a four-year period, with shares vesting in four (4) equal annual installments. RSUs granted to executive and non-executive employees as merit awards generally vest in 16 equal quarterly installments following the grant date.

The Company initially reserved 5,200,000 shares of common stock for future issuance under the 2021 Plan. This initial reserve is subject to annual increase on the first day of each calendar year beginning on January 1, 2022 and ending on and including January 1, 2031. These annual increases are equal to the lesser of (i) 5% of the aggregate number of shares of common stock outstanding on the final day of the immediately preceding calendar year and (ii) such smaller number of shares of common stock as determined by the Company's board of directors (the "Board"), subject to certain limitations. Pursuant to the evergreen provision, the initial share reserve was increased by 2,546,899 and 2,456,568 shares on January 1, 2025 and 2024, respectively.

As of September 30, 2025 and December 31, 2024, there were 7,668,386 shares and 5,931,302 shares, respectively, of common stock available for issuance under the 2021 Plan.

The 2011 Plan was superseded by the 2021 Plan at the time of the initial public offering of the Company's common stock, which closed on July 15, 2021, and no further grants have been made under the 2011 Plan from the date the 2021 Plan became effective.

The following table summarizes stock option activity under the 2021 Plan during the periods presented:


	Number of Shares			Weighted-Average Exercise Price		Weighted-Average Contractual Term (in years)		Average Intrinsic Value (in thousands)
Balances as of December 31, 2024		4,464,388		$	9.23		6.5	$	2,769
Grants		—			—
Forfeited/cancelled		(601,217	)		7.99
Exercised/released		(173,199	)		0.86
Balances as of September 30, 2025		3,689,972		$	9.82		5.1	$	1,662
Vested and exercisable as of September 30, 2025		3,410,906		$	9.79		4.9	$	1,612
Vested and expected to vest as of September 30, 2025		3,689,972		$	9.82		5.1	$	1,662

During the three months ended September 30, 2025 and 2024, the Company recorded stock-based compensation expense of $0.7 million and $1.9 million related to stock option awards, respectively. During the nine months ended September 30, 2025 and 2024, the Company recorded stock-based compensation expense of $3.5 million and $5.7 million related to stock option awards, respectively. The Company did not grant any stock options during the nine months ended September 30, 2025. The weighted-average grant-date fair values of stock options granted during the nine months ended September 30, 2024 was $2.71.

The aggregate intrinsic value of stock options exercised during the three and nine months ended September 30, 2025 was $0.2 million and $0.4 million, respectively. The aggregate intrinsic value was calculated as the difference between the exercise prices of the underlying stock options and the estimated fair value of the common stock on the date of exercise. As of September 30, 2025, the unrecognized stock-based compensation expense relating to unvested stock options was $1.4 million, which is expected to be recognized over a weighted-average period of approximately 0.9 years.

The Company estimated the grant date fair value of stock options using the Black-Scholes option-pricing model, which requires the use of highly subjective and complex valuation assumptions to determine the fair value of stock-based awards, including the option’s expected term, the expected volatility of the underlying stock, the risk-free interest rate, and the expected dividend yield. For purposes of the Black-Scholes valuation model, the Company used the simplified method for determining the expected term of the granted stock options since the Company does not have adequate historical data to utilize in calculating the expected term. The grant date fair value of stock options granted was calculated using the following weighted average assumptions:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2025	2024	2025	2024
Expected term (in years)	N/A	N/A	N/A	6.13
Expected volatility	N/A	N/A	N/A	61.67%
Risk-free interest rate	N/A	N/A	N/A	4.28%
Dividend yield	N/A	N/A	N/A	–

The following table summarizes RSU activity under the 2021 Plan during the periods presented:


	Number of Shares			Weighted-Average Grant Date Fair Value Per Share
Outstanding, December 31, 2024		4,341,818		$	5.57
Grants		3,091,885			3.04
Forfeited/cancelled		(1,680,853	)		3.99
Vested		(1,219,371	)		6.18
Outstanding, September 30, 2025		4,533,479		$	4.36

During the three months ended September 30, 2025 and 2024, the Company recorded stock-based compensation expense of $1.7 million and $2.2 million related to the RSUs, respectively. During the nine months ended September 30, 2025 and 2024, the Company recorded stock-based compensation expense of $6.7 million and $6.9 million related to the RSUs, respectively. As of September 30, 2025, the unrecognized stock-based compensation expense relating to RSUs was $15.7 million, which is expected to be recognized over a weighted-average period of approximately 2.5 years.

In July 2021, the board of directors and stockholders approved the 2021 Employee Stock Purchase Plan (the “ESPP”). The ESPP permits participants to purchase shares of common stock at a discount through payroll deductions of up to a specified percentage of their eligible compensation. Shares of common stock are offered during two offering periods annually, each running for nine months, with the first offering period typically beginning in the second quarter, and the second offering period typically beginning in the fourth quarter. The purchase of shares for participants in the ESPP occurs at the conclusion of each offering period.

The Company initially reserved 850,000 shares of common stock for future issuance under the ESPP. This initial reserve is subject to annual increase on the first day of each calendar year beginning on January 1, 2022 and ending on and including January 1, 2031. These annual increases shall be equal to the lesser of (i) 1% of the aggregate number of shares of common stock outstanding on the final day of the immediately preceding calendar year and (ii) such smaller number of shares of common stock as determined by the Board, subject to certain

limitations. Pursuant to the evergreen provision, the initial share reserve was increased by 509,379 and 491,313 shares on January 1, 2025 and 2024, respectively.

As of September 30, 2025 and December 31, 2024, there were 1,996,797 and 1,631,076 shares of common stock available for issuance under the ESPP, respectively.

During the three and nine months ended, September 30, 2025, participants purchased 143,658 shares for $0.4 million under the ESPP. As of September 30, 2025, the Company has collected payroll withholdings of $0.3 million in the current offering period for the purchase of shares under the ESPP. The Company recorded stock-based compensation expense of $0.1 million related to the ESPP for the three months ended September 30, 2025 and 2024. The Company recorded stock-based compensation expense of $0.3 and $0.5 million related to the ESPP for the nine months ended September 30, 2025 and 2024, respectively.

The grant date fair value of shares issuable under the ESPP was calculated using the Black-Scholes valuation model using the following assumptions:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2025	2024	2025	2024
Expected term (in years)	0.49 – 0.50	0.49 – 0.50	0.49 – 0.50	0.49 – 0.50
Expected volatility	71.55% – 72.80%	100.00% – 197.51%	71.55% – 72.80%	100.00% – 197.51%
Risk-free interest rate	4.27% – 4.47%	5.37% – 5.40%	4.27% – 4.47%	5.37% – 5.40%
Dividend yield	–	–	–	–

The following is a summary of stock-based compensation expense by function (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Cost of goods sold	$	39	$	83	$	260	$	283
Research and development		151		588		1,638		1,787
Selling, general and administrative		2,231		3,637		8,607		11,061
Total stock-based compensation expense	$	2,421	$	4,308	$	10,505	$	13,131