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Stock-Based Compensation | 12 Months Ended
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Dec. 31, 2023
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | Note 14. Stock-Based Compensation Stock-Based Incentive Plans The 2020 Plan In July 2020, the Board of Directors approved the LENSAR Inc. 2020 Incentive Award Plan (the “2020 Plan”). The 2020 Plan provides for the grant of stock options, restricted stock, restricted stock unit awards and other stock-based awards to recipients. The amount and terms of grants are determined by the Company’s Board of Directors or a duly authorized committee thereof. Participants must pay the Company, or make provisions to pay, any required withholding taxes by the date of the event creating the tax liability. Participants may satisfy the tax liability in cash or in stock. A total of 3,333 shares of common stock were initially reserved for issuance pursuant to the 2020 Plan. The number of shares available for issuance under the 2020 Plan includes an annual increase on the first day of each fiscal year beginning fiscal 2021, equal to the lesser of (i) 5% of the aggregate number of shares outstanding on the final day of the immediately preceding calendar year and (ii) such smaller number of shares as determined by the Board of Directors. As of December 31, 2023 the Company has reserved 4,984 shares of common stock for issuance under the 2020 Plan. A summary of the shares available for issuance under the 2020 Plan is as follows:
|  | Number of Shares |
Balance at December 31, 2021 |  |  | 1,082 |
Authorized |  |  | 549 |
Granted/Awarded |  |  | (678 | )
Cancelled |  |  | 49 |
Balance at December 31, 2022 |  |  | 1,002 |
Authorized |  |  | 555 |
Granted/Awarded |  |  | (1,380 | )
Cancelled |  |  | 117 |
Balance at December 31, 2023 |  |  | 294 |
Stock Options The exercise price of incentive stock options (“ISOs”) and nonqualified stock options (“NSOs”) shall not be less than 100% of the fair market value on the grant date of the option and the term may not exceed 10 years. The exercise price of ISOs granted to a 10% stockholder shall not be less than 110% of the estimated fair market value on the grant date of the option and the term may not exceed five years. To date, options have a term of 10 years and generally vest over one to four years from the grant date. Option award activity under the 2020 Plan is set forth below:
|  | Options Outstanding |
|  | Number of Shares |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Term (In Years) |  |  | Aggregate Intrinsic Value |
Outstanding at December 31, 2021 |  |  | 653 |  |  | $ | 7.57 |  |  |  | 9.3 |  |  | $ | — |
Options granted |  |  | 592 |  |  | $ | 6.19 |  |  |  |  |  |  |
Options exercised |  |  | — |  |  | $ | — |  |  |  |  |  |  |
Options cancelled |  |  | (43 | ) |  | $ | 6.88 |  |  |  |  |  |  |
Outstanding at December 31, 2022 |  |  | 1,202 |  |  | $ | 6.91 |  |  |  | 8.7 |  |  | $ | — |
Options granted |  |  | 834 |  |  | $ | 2.98 |  |  |  |  |  |  |
Options exercised |  |  | — |  |  | $ | — |  |  |  |  |  |  |
Options cancelled |  |  | (62 | ) |  | $ | 5.01 |  |  |  |  |  |  |
Outstanding at December 31, 2023 |  |  | 1,974 |  |  | $ | 5.31 |  |  |  | 8.0 |  |  | $ | 429 |
Vested and expected to vest at December 31, 2023 |  |  | 1,974 |  |  | $ | 5.31 |  |  |  | 8.0 |  |  | $ | 429 |
Vested and exercisable at December 31, 2023 |  |  | 960 |  |  | $ | 6.48 |  |  |  | 7.2 |  |  | $ | 42 |
The weighted average grant date fair value of options granted during the years ended December 31, 2023 and 2022 was $1.94 and $3.90, respectively. The total fair value of options vested during the years ended December 31, 2023 and 2022 was approximately $2,264 and $2,501, respectively. Total unrecognized compensation expense of $2,412 related to stock options will be recognized over a weighted average period of 2.1 years. The following table summarizes information about stock options outstanding and vested as of December 31, 2023:
|  | Options Outstanding |  |  | Options Vested |
Exercise Price |  | Options Outstanding |  |  | Weighted Average Remaining Contractual Term (in Years) |  |  | Weighted Average Exercise Price |  |  | Number Exercisable |  |  | Weighted Average Exercise Price |
$2.15 - $3.10 |  |  | 361 |  |  |  | 9.0 |  |  | $ | 2.66 |  |  |  | — |  |  | $ | — |
$3.23 |  |  | 436 |  |  |  | 9.1 |  |  | $ | 3.23 |  |  |  | 149 |  |  | $ | 3.23 |
$3.27 - $5.95 |  |  | 32 |  |  |  | 8.6 |  |  | $ | 5.42 |  |  |  | 10 |  |  | $ | 5.78 |
$6.04 |  |  | 415 |  |  |  | 8.0 |  |  | $ | 6.04 |  |  |  | 199 |  |  | $ | 6.04 |
$6.07 - $8.62 |  |  | 730 |  |  |  | 6.7 |  |  | $ | 7.44 |  |  |  | 602 |  |  | $ | 7.45 |
|  |  | 1,974 |  |  |  | 8.0 |  |  | $ | 5.31 |  |  |  | 960 |  |  | $ | 6.48 |
The Company estimated the fair value of stock-options using the Black-Scholes option pricing model. The fair value of employee and non-employee stock options is being amortized on a straight-line basis over the requisite service period of the awards. The fair value of employee and non-employee stock options was estimated using the following assumptions for the years ended December 31, 2023 and 2022:
| Year Ended December 31, |  | Year Ended December 31,
| 2023 |  | 2022
Risk-free interest rate | 3.5 - 4.7% |  | 1.5 - 4.2%
Expected term (years) | 6 |  | 6
Expected volatility | 57 - 70% |  | 70%
Dividends | 0.0% |  | 0.0%
Expected term: The expected term for the Company’s stock-based compensation awards was based on an index of the expected terms of a group of comparable publicly-traded medical device and other peer companies, which the Company believed was representative of the expected term of its awards. Risk-free interest rate: The risk-free interest rate was based on the rates paid on securities issued by the U.S. Treasury with a term approximating the expected term. Expected volatility: The expected volatility for the Company’s stock-based compensation awards was based on an index of the historical volatilities of a group of comparable publicly-traded medical device and other peer companies, which the Company believed was representative of the volatility of its common stock. Expected dividend yield: The Company does not intend to pay dividends for the foreseeable future. Accordingly, the Company used a dividend yield of zero in the assumptions. Restricted Stock Awards Restricted stock has the same rights as other issued and outstanding shares of the Company’s common stock. The compensation expense related to these awards is determined using the fair market value of the Company’s common stock on the date of the grant. Under the Company’s restricted stock plans, restricted stock awards typically vest over three years and compensation expense associated with these awards is recognized on a straight-line basis over the vesting period. Restricted stock award activity under the 2020 Plan is set forth below:
|  | Restricted Stock Awards Outstanding |
|  | Number of Units |  |  | Weighted- average grant- date fair value per share |
Non-vested at December 31, 2021 |  |  | 1,332 |  |  | $ | 10.29 |
Granted |  |  | — |  |  | $ | — |
Vested |  |  | (704 | ) |  | $ | 10.29 |
Cancelled |  |  | (6 | ) |  | $ | 10.81 |
Non-vested at December 31, 2022 |  |  | 622 |  |  | $ | 10.29 |
Granted |  |  | — |  |  | $ | — |
Vested |  |  | (616 | ) |  | $ | 10.29 |
Cancelled |  |  | (6 | ) |  | $ | 10.81 |
Non-vested at December 31, 2023 |  |  | — |  |  | $ | — |
The total fair value of restricted stock awards vested during the years ended December 31, 2023 and 2022 was $6,342 and $7,240, respectively. Restricted Stock Units Restricted stock units granted to employees and non-employees generally vest over one to four years in regular increments. The fair value of restricted stock units is based on the Company’s closing stock price on the date of grant. Restricted stock unit activity under the 2020 Plan is set forth below:
|  | Restricted Stock Units Outstanding |
|  | Number of Units |  |  | Weighted- average grant- date fair value per share |
Non-vested at December 31, 2021 |  |  | — |  |  | $ | — |
Granted |  |  | 86 |  |  | $ | 6.33 |
Vested |  |  | — |  |  | $ | — |
Cancelled |  |  | — |  |  | $ | — |
Non-vested at December 31, 2022 |  |  | 86 |  |  | $ | 6.33 |
Granted |  |  | 546 |  |  | $ | 2.73 |
Vested |  |  | (113 | ) |  | $ | 4.14 |
Cancelled |  |  | (36 | ) |  | $ | 2.65 |
Non-vested at December 31, 2023 |  |  | 483 |  |  | $ | 3.04 |
The total fair value of restricted stock units vested during the year ended December 31, 2023 was $466. At December 31, 2023 there was approximately $885 of total unrecognized compensation expense related to restricted stock units, which is expected to be recognized over a weighted-average period of 1.2 years. 2020 Employee Stock Purchase Plan In September 2020, the Board of Directors approved the LENSAR Inc. 2020 Employee Stock Purchase Plan (the “2020 ESPP”), under which eligible employees are permitted to purchase common stock at a discount through payroll deductions. A total of 340 shares of common stock were initially reserved for issuance and will be increased on the first day of each fiscal year, beginning in 2022, by an amount equal to the lesser of (i) 1.0% of the outstanding shares of common stock as of the last day of the immediately preceding fiscal year; or (ii) a lesser amount as determined by the Board of Directors. As of December 31, 2023, the Company has reserved 451 shares of common stock for issuance under the 2020 ESPP. The price of the common stock purchased will be the lower of 85% of the fair market value of the common stock at the beginning of an offering period or at the end of a purchase period. The 2020 ESPP is intended to qualify as an "employee stock purchase plan" within the meaning of Section 423 of the Code. As of December 31, 2023, 304 shares of common stock have been issued to employees participating in the 2020 ESPP and 147 shares were available for future issuance under the 2020 ESPP. The grant date fair value of the shares to be issued under the Company’s 2020 ESPP was estimated using the Black-Scholes valuation model. The following table sets forth the total stock-based compensation expense recognized under the 2020 Plan and the 2020 ESPP in the Company’s statements of operations:
|  | Year Ended December 31, |
|  | 2023 |  |  | 2022 |
Revenue—product |  | $ | 10 |  |  | $ | — |
Cost of revenue—product |  |  | 289 |  |  |  | 219 |
Cost of revenue—service |  |  | 168 |  |  |  | 126 |
Selling, general and administrative expenses |  |  | 4,495 |  |  |  | 5,648 |
Research and development expenses |  |  | 577 |  |  |  | 618 |
Total |  | $ | 5,539 |  |  | $ | 6,611 |
Total unrecognized stock-based compensation expense is expected to be amortized as follows:
Fiscal Year |  | Amount |
2024 |  | $ | 2,069 |
2025 |  |  | 1,006 |
2026 |  |  | 215 |
2027 |  |  | 7 |
2028 |  |  | — |
Thereafter |  |  | — |
Total unrecognized stock-based compensation expense |  | $ | 3,297 |
The amounts included in this table are based on restricted stock units and stock options outstanding at December 31, 2023 and assumes the requisite service period is fulfilled for all awards outstanding. Actual stock-based compensation expense in future periods may vary from those reflected in the table.

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