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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-40690

RxSIGHT, INC.

(Exact Name of Registrant as Specified in its Charter)


Delaware	94-3268801
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
100 Columbia Aliso Viejo, CA	92656
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (949) 521-7830

Securities registered pursuant to Section 12(b) of the Act:

      Title of each class

      Trading
Symbol(s)

      Name of each exchange on which registered

      Common Stock, par value $0.001 per share 

      RXST

      The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of October 30, 2025, the registrant had 41,116,640 shares of common stock, $0.001 par value per share, outstanding.


		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	6
	Condensed Consolidated Balance Sheets	6
	Condensed Consolidated Statements of Operations and Comprehensive Loss	7
	Condensed Consolidated Statements of Equity	8
	Condensed Consolidated Statements of Cash Flows	10
	Notes to Unaudited Condensed Consolidated Financial Statements	11
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34
Item 4.	Controls and Procedures	35
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	36
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	96
Item 3.	Defaults Upon Senior Securities	96
Item 4.	Mine Safety Disclosures	96
Item 5.	Other Information	96
Item 6.	Exhibits	98
Signatures		99

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

The following discussion and analysis should be read together with our condensed consolidated financial statements and the condensed notes to those statements included elsewhere in this report. This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, that are based on our management’s beliefs and assumptions and on information currently available to our management. In this report, “we,” “us” and “our” refer to RxSight, Inc., a Delaware corporation, and its consolidated subsidiaries.

Forward-looking statements include, but are not limited to, statements concerning the following:

•

the sufficiency of our existing capital resources to fund our future operating expenses and capital expenditure requirements, including our expectation that we do not anticipate the need to raise additional capital or incur additional debt in order to reach profitability from operations, as disclosed in our future Annual Reports on Form 10-K or Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (“SEC”), provided that we may opportunistically seek to raise capital under advantageous circumstances from time to time in order to support the expansion of our sales and operations in the U.S. and internationally and to pursue other business opportunities;

•

our belief that our current cash, cash equivalents and short-term investments through the date of filing of this report will be sufficient to fund our operations for at least the next 12 months;

•

our expectation that revenue will increase in absolute dollars as we expand our sales organization and sales territories, add customers, expand the base of doctors that are trained to use our products, and expand awareness of our products with new and existing customers and as doctors perform more procedures using our products;

•

our estimates of expenses, ongoing losses, future revenue, capital requirements and our need for, or ability to obtain, additional financing;

•

our expectations about our gross margins based on the forecast of manufacturing volumes of Light-Adjustable Lenses (“LALs”);

•

our plans for the growth of our business and our organization, including with respect to new geographic markets;

•

our belief that, over time, our adjustable lens solution can be used to address a broad range of cataract surgery patients, including those that would otherwise elect for a conventional cataract procedure today;

•

our belief that our RxSight system offers doctors and patients a significantly more reliable approach that can consistently deliver optimal, fully customized visual outcomes with few compromises, ultimately driving broad adoption and establishing it as the standard of care for premium cataract procedures;

•

our belief that there is an opportunity to gain market share in the premium intraocular lens (“IOL”) market segment and also increase the penetration of premium IOLs in the broader market by converting doctors and patients currently electing for conventional cataract surgery;

•

our belief that the premium cataract surgery market remains underpenetrated due to both doctors’ reluctance to recommend premium IOL offerings to the full universe of eligible patients and patients’ confusion in assessing the trade-offs associated with the wide range of commercially available premium IOL offerings;

•

our belief that current non-adjustable premium IOL offerings often cannot deliver on patient expectations regarding their desire to see at near, intermediate and far distances without reliance on glasses and to avoid troubling side effects such as glare, halos and loss of contrast sensitivity;

•

our intentions regarding investment in our business as we pursue growth;

•

our plans and expected timelines related to our products, or developing new products, to address additional indications or otherwise;


3

•

our ability to obtain, maintain and expand regulatory clearances for our products and any new products we create;

•

our expected uses of our existing resources;

•

our belief that our current manufacturing capacity is sufficient to meet our current expected demand for at least the next 12 months;

•

our belief that we have sufficiently trained personnel and processes to manufacture our products;

•

our belief that our existing facilities are adequate for our near-term needs, and that suitable additional or alternative space would be available in the future as required on commercially reasonable terms;

•

our expectations regarding government and third-party payer coverage and reimbursement;

•

our expectations regarding supply of materials and components for our products from our third-party suppliers, including single and sole source suppliers;

•

our ability to obtain, maintain and enforce intellectual property protection for our products and protect our intellectual property rights;

•

our plans to conduct further clinical trials and any expectations related to the timing or outcomes of such trials;

•

our ability to comply with existing and future government laws, rules and regulations both in the United States and internationally;

•

our ability to identify and develop new and planned products and/or acquire new products; and

•

developments and projections relating to our competitors or our industry, including anticipated growth rates for the conventional and premium IOL markets.

Forward-looking statements include statements that are not historical facts and can be identified by terminology such as “may,” “will,” “should,” “could,” “would,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “potential,” or “continue,” or the negative of such terms and other same terminology.

Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. We discuss these risks in greater detail in Part II, Item 1A, “Risk Factors”, elsewhere in this report. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this report may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

The forward-looking statements made in this report relate only to events as of the date on which the statements are made. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

INDUSTRY, BUSINESS AND MARKET DATA

This report also contains estimates, projections and other information concerning our industry, our business, and market opportunity, including data regarding the estimated size of the market. Information that is based on estimates, forecasts, projections, market research or similar methodologies is inherently subject to uncertainties and actual events or circumstances may differ materially from events and circumstances reflected in this information. Unless otherwise expressly stated, we obtained this industry, business, market and other data from reports, research surveys, studies and similar data prepared by market research firms and other third parties, industry, medical and general publications, government data and similar sources.


4

TRADEMARKS, SERVICE MARKS AND TRADE NAMES

This report contains references to trademarks and service marks belonging to other entities. Solely for convenience, trademarks and trade names referred to in this report may appear without the ® or TM symbols, but such references are not intended to indicate, in any way, that the applicable licensor will not assert, to the fullest extent under applicable law, its rights to these trademarks and trade names. We do not intend our use or display of other companies’ trade names, trademarks or service marks to imply a relationship with, or endorsement or sponsorship of it by, any other companies.


5

Item 1. Financial Statements (Unaudited)

RxSIGHT, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)


	September 30,			December 31,
	2025			2024
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	29,633		$	16,706
Short-term investments		197,883			220,517
Accounts receivable, net		24,151			30,050
Inventories, net		28,950			22,009
Prepaid and other current assets		3,260			4,541
Total current assets		283,877			293,823
Property and equipment, net		13,096			12,413
Operating leases right-of-use assets		10,276			11,217
Restricted cash		748			750
Other assets		536			360
Total assets	$	308,533		$	318,563

Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	3,377		$	4,544
Accrued expenses and other current liabilities		17,621			20,358
Lease liabilities		1,293			974
Total current liabilities		22,291			25,876
Long-term lease liabilities		10,272			11,322
Other long-term liabilities		—			127
Total liabilities		32,563			37,325
Commitments and contingencies (Note 8)
Stockholders' equity:
Common stock, $0.001 par value, 900,000,000 shares authorized, 41,081,550 shares issued and outstanding as of September 30, 2025 and 40,428,220 shares issued and outstanding as of December 31, 2024		41			40
Preferred stock, $0.001 par value, 100,000,000 shares authorized, no shares issued and outstanding		—			—
Additional paid-in capital		927,756			903,127
Accumulated other comprehensive income		60			166
Accumulated deficit		(651,887	)		(622,095	)
Total stockholders' equity		275,970			281,238
Total liabilities and stockholders' equity	$	308,533		$	318,563

See accompanying notes to unaudited condensed consolidated financial statements.


6

RxSIGHT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE LOSS (UNAUDITED)

(In thousands, except share and per share amounts)



	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024

Sales	$	30,340		$	35,314		$	101,871		$	99,713
Cost of sales		6,113			10,094			24,125			29,558
Gross profit		24,227			25,220			77,746			70,155
Operating expenses:
Selling, general and administrative		27,345			25,608			84,956			73,225
Research and development		9,060			8,838			29,644			25,160
Total operating expenses		36,405			34,446			114,600			98,385
Loss from operations		(12,178	)		(9,226	)		(36,854	)		(28,230	)
Other income (expense), net:
Interest expense		(4	)		(5	)		(14	)		(16	)
Interest and other income		2,376			2,906			7,137			6,767
Loss before income taxes		(9,806	)		(6,325	)		(29,731	)		(21,479	)
Income tax expense		10			13			61			38

Net loss	$	(9,816	)	$	(6,338	)	$	(29,792	)	$	(21,517	)
Other comprehensive loss
Unrealized gain (loss) on short-term investments		178			633			(123	)		524
Foreign currency translation (loss) gain		(1	)		6			18			2
Total other comprehensive loss		177			639			(105	)		526

Comprehensive loss	$	(9,639	)	$	(5,699	)	$	(29,897	)	$	(20,991	)

Net loss per share:
Basic & diluted	$	(0.24	)	$	(0.16	)	$	(0.73	)	$	(0.56	)
Weighted-average shares used in computing net loss per share:
Attributable to common stock, basic & diluted		40,965,219			39,788,621			40,741,219			38,367,759

See accompanying notes to unaudited condensed consolidated financial statements.


7

RxSIGHT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(UNAUDITED)

(In thousands, except number of shares)


	Nine Months Ended September 30, 2025

	Common stock					Additional paid-in			Accumulated other			Accumulated			Total stockholders'
	Shares			Amount		capital			comprehensive income (loss)			deficit			equity
Balance at December 31, 2024		40,428,220		$	40	$	903,127		$	166		$	(622,095	)	$	281,238
Shares issued for the exercise of stock options and vesting of restricted stock units		210,332			1		696			—			—			697
Shares redeemed for employee tax withholdings		(50,012	)		—		(1,418	)		—			—			(1,418	)
Stock-based compensation expense		—			—		7,140			—			—			7,140
Unrealized loss on short-term investments and cash equivalents, net of tax		—			—		—			(157	)		—			(157	)
Foreign currency translation adjustment		—			—		—			6			—			6
Net loss		—			—		—			—			(8,190	)		(8,190	)
Balance at March 31, 2025		40,588,540		$	41	$	909,545		$	15		$	(630,285	)	$	279,316
Shares issued for the exercise of stock options and vesting of restricted stock units		268,485			—		1,362			—			—			1,362
Stock-based compensation expense					—		8,547			—			—			8,547
Shares issued for the employee stock purchase plan		56,355			—		705			—			—			705
Unrealized loss on short-term investments and cash equivalents, net of tax		—			—		—			(145	)		—			(145	)
Foreign currency translation adjustment		—			—		—			13			—			13
Net loss		—			—		—						(11,786	)		(11,786	)
Balance at June 30, 2025		40,913,380		$	41	$	920,159		$	(117	)	$	(642,071	)	$	278,012
Shares issued for the exercise of stock options and vesting of restricted stock units		241,943			—		131			—			—			131
Shares redeemed for employee tax withholdings		(73,773	)		—		(642	)		—			—			(642	)
Stock-based compensation expense		—			—		8,108			—			—			8,108
Unrealized gain on short-term investments and cash equivalents, net of tax		—			—		—			178			—			178
Foreign currency translation adjustment		—			—					(1	)		—			(1	)
Net loss		—			—		—			—			(9,816	)		(9,816	)
Balance at September 30, 2025		41,081,550		$	41	$	927,756		$	60		$	(651,887	)	$	275,970

See accompanying notes to unaudited condensed consolidated financial statements


8

RxSIGHT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(UNAUDITED)

(In thousands, except number of shares)


	Nine Months Ended September 30, 2024

	Common stock					Additional paid-in			Accumulated other			Accumulated			Total stockholders'
	Shares			Amount		capital			comprehensive income (loss)			deficit			equity
Balance at December 31, 2023		36,139,513		$	36	$	754,971		$	(5	)	$	(594,640	)	$	160,362
Shares issued for the exercise of stock options and vesting of restricted stock units		1,061,336			1		10,152			—			—			10,153
Shares redeemed for employee tax withholdings		(39,096	)		—		(2,134	)		—			—			(2,134	)
Stock-based compensation expense		—			—		4,696			—			—			4,696
Unrealized loss on short-term investments and cash equivalents, net of tax		—			—		—			(45	)		—			(45	)
Foreign currency translation adjustment		—			—		—			(3	)		—			(3	)
Net loss		—			—		—			—			(9,100	)		(9,100	)
Balance at March 31, 2024		37,161,753		$	37	$	767,685		$	(53	)	$	(603,740	)	$	163,929
Shares issued for the exercise of stock options and vesting of restricted stock units		363,105			1		3,102			—			—			3,103
Stock-based compensation expense		—			—		6,105						—			6,105
Shares issued for the employee stock purchase plan		38,905			—		737			—			—			737
Issuance of common stock for at-the-market offerings, net of issuance costs		2,053,571			2		107,475			—			—			107,477
Unrealized loss on short-term investments and cash equivalents, net of tax		—			—		—			(64	)		—			(64	)
Foreign currency translation adjustment		—			—		—			(1	)		—			(1	)
Net loss		—			—		—			—			(6,079	)		(6,079	)
Balance at June 30, 2024		39,617,334		$	40	$	885,104		$	(118	)	$	(609,819	)	$	275,207
Shares issued for the exercise of stock options and vesting of restricted stock units		683,489			—		3,835			—			—			3,835
Shares redeemed for employee tax withholdings		(46,718	)		—		(2,634	)					—			(2,634	)
Stock-based compensation expense		—			—		6,552			—			—			6,552
Unrealized gain on short-term investments and cash equivalents, net of tax		—			—		—			633			—			633
Foreign currency translation adjustment		—			—		—			6			—			6
Net loss		—			—		—			—			(6,338	)		(6,338	)
Balance at September 30, 2024		40,254,105		$	40	$	892,857		$	521		$	(616,157	)	$	277,261

See accompanying notes to unaudited condensed consolidated financial statements


9

RxSIGHT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(In thousands)


	Nine Months Ended September 30,
	2025			2024
Operating Activities:
Net loss	$	(29,792	)	$	(21,517	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		2,415			3,060
Provision for bad debts		32			34
Amortization of right-of-use lease assets		—			41
Amortization of discount on short-term investments		(6,685	)		(6,349	)
Stock-based compensation		23,795			17,353
Provision for excess and obsolete inventory		1,316			333
Change in operating assets and liabilities:
Accounts receivable		5,867			(5,121	)
Inventories		(8,257	)		(4,585	)
Prepaid and other assets		2,064			850
Accounts payable		(1,577	)		830
Accrued expenses and other liabilities		(3,573	)		2,385
Net cash used in operating activities		(14,395	)		(12,686	)
Investing Activities:
Purchases of property and equipment		(2,693	)		(4,593	)
Maturities of short-term investments		170,000			188,000
Purchases of short-term investments		(140,804	)		(284,038	)
Net cash provided by (used in) investing activities		26,503			(100,631	)
Financing Activities:
Proceeds from issuance of common stock from public offering		—			108,100
Proceeds from issuance of common stock		2,895			17,828
Payments for employee taxes related to stock compensation		(2,060	)		(4,768	)
Principal payments on finance lease liabilities		(35	)		(49	)
Payments of deferred offering costs		—			(768	)
Net cash provided by financing activities		800			120,343
Effect of foreign exchange rate on cash, cash equivalents and restricted cash		18			3
Net increase in cash, cash equivalents and restricted cash		12,926			7,029
Cash, cash equivalents and restricted cash - beginning of period		17,456			10,402
Cash, cash equivalents and restricted cash - end of period	$	30,382		$	17,431
Supplemental disclosure of cash flow information:
Operating cash flows from operating leases		1,943			1,633
Cash paid for income taxes		70			26
Non-cash investing and financing activities:
Right-of-use assets obtained in exchange for lease obligations:
Operating lease		—			9,060
Lease obligations recorded for right-of-use assets:
Operating lease		—			9,060
Acquisition of property and equipment included in accounts payable and accrued expenses and accrued liabilities		135			393
Reclassification of deferred financing costs		—			768

See accompanying notes to unaudited condensed consolidated financial statements.


10

RxSIGHT, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 - Organization and Basis of Presentation

Description of Business

RxSight®, Inc. (the “Company”) is a Delaware corporation headquartered in Aliso Viejo, California with wholly owned subsidiaries located in Hong Kong (“RxSight, Limited”) and in Amsterdam, Netherlands (“RxSight, B.V.”). RxSight, B.V. has a registered branch in the United Kingdom and a wholly owned subsidiary located in Germany (“RxSight GmbH”). The Company is engaged in the research and development, manufacture and sale of light adjustable intraocular lenses used in cataract surgery along with capital equipment used with the lenses.

The Company’s products, which include the light adjustable lens® (“LAL®” and “LAL+®”, and collectively the “LAL”) and a specially designed machine for delivering light to the eye, the Light Delivery Device (“LDD™”), are approved by the United States (“U.S.”) Food and Drug Administration (“FDA”) primarily for sale in the U.S. and also have regulatory approval in several foreign countries. The Company began marketing its products in 2019. The LAL is a premium intraocular lens (“IOL”) which is partially reimbursable under Medicare. The Company competes with other IOLs in the premium market.

The accompanying unaudited condensed consolidated financial statements include the accounts of RxSight, Inc. and its wholly owned subsidiaries. All significant inter-company balances and transactions have been eliminated in consolidation.

Basis of Presentation and Principles of Consolidation

The Company’s condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Accordingly, the accompanying unaudited condensed consolidated financial statements do not include all of the information and notes required by GAAP for complete financial statements. The unaudited interim financial statements reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results for the periods presented. All such adjustments are of a normal and recurring nature. The December 31, 2024 balance sheet data was derived from audited financial statements; however, the accompanying notes to the condensed consolidated financial statements do not include all of the annual disclosures required under GAAP and should be read in conjunction with the audited consolidated financial statements included in the Company’s 2024 Annual Report on Form 10-K filed with the SEC on February 25, 2025. The operating results presented in these unaudited condensed consolidated financial statements are not necessarily indicative of the results that may be expected for any future periods.


11

Operating Segments

The Company determined that it operates and manages its business (including its non-U.S. subsidiaries) in one reportable segment: the research and development, manufacture and sale of light adjustable lenses and related capital equipment. The Company determined its operating segment on the same basis that it uses to evaluate its performance internally. Asset information provided to the CODM is consistent with those reported on the Consolidated Balance Sheets and are primarily attributable to the United States. The key measure of segment profit and loss that the CODM uses to allocate resources and assess performance is the Company’s consolidated net loss. The table below shows a reconciliation of the Company’s net loss, including the significant expense categories regularly provided to and reviewed by the CODM, as computed under U.S. GAAP to the Company’s total consolidated net loss in the Consolidated Statements of Operations:


	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2025			2024			2025			2024

Sales	$	30,340		$	35,314		$	101,871		$	99,713
Cost of sales		6,113			10,094			24,125			29,558
Gross profit		24,227			25,220			77,746			70,155
Operating expenses:
Commercial		20,269			18,584			63,054			52,391
General and administrative		7,076			7,024			21,902			20,834
Research and development		7,783			7,215			25,704			19,721
Clinical and regulatory		1,277			1,623			3,940			5,439
Total operating expenses		36,405			34,446			114,600			98,385
Loss from operations		(12,178	)		(9,226	)		(36,854	)		(28,230	)
Other income (expense), net:
Interest expense		(4	)		(5	)		(14	)		(16	)
Interest and other income		2,376			2,906			7,137			6,767
Loss before income taxes		(9,806	)		(6,325	)		(29,731	)		(21,479	)
Income tax expense		10			13			61			38
Net loss	$	(9,816	)	$	(6,338	)	$	(29,792	)	$	(21,517	)

Liquidity

As of September 30, 2025 and December 31, 2024 the Company had cash, cash equivalents and short-term investments of $227.5 million and $237.2 million, respectively.

The Company began generating revenue from its principal operations in 2019 and the revenue and income potential of the Company’s business and market continue to develop. The Company has experienced recurring net losses and negative cash flows from operating activities since its inception. For the three months ended September 30, 2025 and 2024, the Company incurred losses from operations of $12.2 million and $9.2 million, respectively. For the nine months ended September 30, 2025 and 2024, the Company incurred losses from operations of $36.9 million and $28.2 million, respectively. Based on the Company’s anticipated sales in relation to the anticipated costs associated with, among other things, its continuing research and development activities and sales and marketing activities, the Company expects to continue to incur net operating losses into the foreseeable future. Successful transition to attaining profitable operations is dependent upon gaining market acceptance of the Company’s products and achieving a level of revenues adequate to support the Company’s cost structure.

The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company believes that existing cash resources will be sufficient to meet projected operating requirements for at least 12 months from the date of issuance of the accompanying condensed consolidated financial statements, however for the near future, the Company expects to continue to incur operating losses and negative cash flows. The Company plans to continue to fund its losses from operations using its cash, cash equivalents and short-term investments as of September 30, 2025 and meet its future capital funding needs through equity or debt financings, other third-party funding, collaborations, strategic alliances and licensing arrangements or a combination of these. If the Company raises additional funds by issuing equity securities, its stockholders may experience dilution. Any future debt financing into which the Company enters may impose additional covenants that restrict operations, including limitations on its ability to incur liens or additional debt, pay dividends, repurchase common stock, make certain investments or engage in certain merger, consolidation or asset


12

sale transactions. Any debt financing or additional equity raise may contain terms that are not favorable to the Company or its stockholders. If the Company is required to enter into collaborations and other arrangements to address its liquidity needs, it may have to give up certain rights that limit its ability to develop and commercialize product candidates or may have other terms that are not favorable to the Company or its stockholders, which could materially and adversely affect its business and financial prospects. There can be no assurance that the Company will be able to obtain additional financing on acceptable terms, or at all. If the Company is not able to secure adequate additional funding, the Company may be forced to make reductions in spending, extend payment terms with suppliers, liquidate assets where possible and/or suspend or curtail planned programs. Any of these actions could materially harm the Company’s business, results of operations and future prospects.

Note 2 - Summary of Accounting Policies

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make informed estimates, judgments and assumptions that affect the reported amounts in the condensed consolidated financial statements and disclosures in the accompanying notes as of the date of the accompanying condensed consolidated financial statements. On an on-going basis, management evaluates the most critical estimates and assumptions for continued reasonableness. Actual results may differ materially from the estimates used in the preparation of the accompanying condensed consolidated financial statements under different assumptions or conditions.

Significant Accounting Policies

There have been no significant changes to the accounting policies during the three months ended September 30, 2025, as compared to the significant accounting policies described in Note 2 of the “Notes to Consolidated Financial Statements” in the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K filed with the SEC on February 25, 2025.

Cash Equivalents

Cash equivalents consist of investments in money market accounts. The Company considers all highly liquid investments with original maturities of three months or less at the date of purchase that can be liquidated without prior notice or penalty to be cash equivalents.

Short-term Investments

Short-term investments are classified based on the maturity date of the related securities. Based on the nature of the assets, the Company’s short-term investments, which are government securities, are classified as available-for-sale and are recorded at their estimated fair value as determined by prices for identical or similar securities at the balance sheet date. The Company’s short-term investments consist of Level 2 financial instruments in the fair value hierarchy. Unrealized gains and losses are recorded as a component of Other Comprehensive Loss within Stockholders’ Equity on the condensed consolidated balance sheets. Realized gains and losses are included as other income (expense) in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Loss. The cost basis for realized gains and losses on available-for-sale securities is determined on a specific identification basis. Management determines the appropriate classification of its investments at the time of purchase and reevaluates such determination at each balance sheet date. The Company periodically reviews its investments for unrealized losses other than credit losses and whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. In determining whether the carrying value is recoverable, management considers the following factors:

•

whether the investment has been in a continuous loss position for over 12 months;

•

the duration to maturity of investments;

•

intention and ability to hold the investment to maturity and if it is not more likely than not that the Company will be required to sell the investment before recovery of the amortized cost basis;

•

the credit rating, financial condition and near-term prospects of the issuer; and


13

•

the type of investments made.

The Company had $67,000 and $190,000 of net unrealized gains related to short-term investments as of September 30, 2025 and December 31, 2024, respectively.

Concentration of Credit Risk and Other Risks and Uncertainties

Financial instruments which potentially subject the Company to concentration of credit risk consist primarily of cash, cash equivalents, short-term investments and accounts receivable. The Company’s policy is to invest cash in institutional money market funds and marketable securities of the U.S. government to limit the amount of credit exposure. The Company currently maintains a portfolio of cash equivalents and short-term investments in money market funds and U.S. treasury bills. A portion of the Company's operating cash is held in accounts in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limits; however, the Company has established guidelines regarding diversification of its investments and their maturities, which are designed to maintain principal and maximize liquidity. The Company has not experienced material losses on cash equivalents and short-term investments.

The Company’s products require approval from the FDA and foreign regulatory agencies before commercial sales can commence. There can be no assurance that the Company’s products will receive any of these required approvals. The denial or delay of such approvals may have a material adverse impact on the Company’s business and may impact business in the future. In addition, after approval by the FDA, there is still an ongoing risk of adverse events that did not appear during the device approval process.

The Company is subject to risks common to companies in the medical device industry, including, but not limited to, new technological innovations, clinical development risk, establishment of appropriate commercial partnerships, protection of proprietary technology, compliance with government and environmental regulations, uncertainty of market acceptance of the Company's products, product liability and the need to obtain additional financing.

The Company is subject to risks from changes in United States trade policy, including recently announced tariffs. The imposition of retaliatory or new tariffs or increases in existing tariffs on goods imported from countries where we source our products could result in increased material costs for our products. The Company is subject to the risks related to global lead times, particularly in Europe and Asia, leading to a supply interruption from the Company's suppliers. In addition, the Company is currently experiencing inflation and longer lead times and limited availability in its supply chain for certain components and has continued exposure to price and supply risk related to anticipated purchases of certain commodities, materials and products used in its business.

Accounts Receivable, net

The Company has a diverse customer base and as of September 30, 2025 and December 31, 2024 the Company did not have any customers who individually accounted for greater than 10% of accounts receivable. The Company maintains an allowance for credit losses resulting from the inability of its customers, including ambulatory surgery centers, to make required payments. After evaluation of the collectability of accounts receivable, the Company did not record any significant allowance for credit losses as of September 30, 2025 or December 31, 2024.

Fair Value of Financial Instruments

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Fair value is measured as the price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques that are consistent with the market, income or cost approach are used to measure fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three levels:

Level 1—Observable inputs such as unadjusted quoted prices in active markets that are accessible at the measurement date for identical unrestricted assets or liabilities.

Level 2—Inputs other than quoted prices included in Level 1 that are either directly or indirectly observable for the asset or liability, for substantially the full term of the asset or liability, through correlation with market data. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar


14

assets or liabilities in markets that are not active and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily observable market data.

Level 3—One or more significant inputs that are unobservable and supported by little or no market activity and reflect the use of significant management judgment and assumptions. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques and significant management judgment or estimation. These include the Black-Scholes option-pricing model which uses inputs such as expected volatility, risk-free interest rate and expected term to determine fair market valuation.

Assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. The Company reviews the fair value hierarchy classification at each reporting date. Changes in the ability to observe valuation inputs may result in a reclassification of levels for certain assets or liabilities within the fair value hierarchy. The Company did not have any transfers of assets and liabilities between the levels of the fair value measurement hierarchy during the years presented.

The Company’s financial instruments consist principally of cash, cash equivalents, short-term investments, accounts receivable, accounts payable and operating lease liabilities. Cash, cash equivalents, accounts receivable and accounts payable are carried at their estimated fair value because of the short-term nature of these assets and liabilities. The Company’s short-term investments in government securities are carried at fair value, determined based on publicly available quoted market prices for identical securities at the measurement date. The Company believes the fair values of its operating lease liabilities at September 30, 2025 and December 31, 2024, approximated their carrying values, based on the borrowing rates that were available for loans with similar terms as of such date.

Inventories

Inventories consist of raw materials, work-in-process and finished goods. Raw materials are comprised of chemicals and parts used in the production of the Company's lenses, cartridges, and LDDs. Finished goods are comprised of lenses, cartridges, accessories and LDDs. Inventories are valued at the lower of cost or net realizable value. Cost is computed using standard cost, which approximates actual cost on a first-in, first-out basis. The carrying value of inventories is reviewed for potential impairment whenever indicators suggest that the cost of inventories exceeds the carrying value and management adjusts the inventories to its net realizable value. The cost of finished goods and work-in-process is comprised of raw materials, direct labor, other direct costs and related production overhead to the extent that these costs do not exceed the net realizable value of the goods produced. The Company periodically reviews inventories for potential impairment, estimated losses from obsolescence, material expirations or unmarketable inventories or excess inventories and writes down the cost of inventories to net realizable value at the time such determinations are made. Net realizable value is determined using the estimated selling price, in the ordinary course of business, less estimated costs to complete and dispose.

Leases

Lease right-of-use assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized when the Company takes possession of the leased property based on the present value of lease payments over the lease term. The Company estimates the incremental borrowing rate based upon the cost of its own debt financing, current market interest rates and quoted offerings or the rate implicit in the lease. Operating lease right-of-use assets also include any lease payments made at or before lease commencement and exclude any lease incentives received. The lease terms used to calculate the right-of-use asset and related lease liability include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Rent expense on noncancelable leases containing known future scheduled rent increases is recorded on a straight-line basis over the term of the respective leases beginning on the lease commencement date. The difference between rent expense and rent paid is accounted for as a component of operating lease right-of-use assets on the accompanying condensed consolidated balance sheets. Landlord improvement allowances and other such lease incentives are recorded as property and equipment and as reduction of the right-of-use leased assets and are amortized on a straight-line basis as a reduction to operating lease costs. Leases with an initial term of 12 months or less are expensed as incurred and are not recorded as right-of-use assets on the condensed consolidated balance sheets.


15

Net Loss per Share

Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average shares of common stock outstanding for the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average shares of common stock and potentially dilutive securities outstanding for the period determined using the treasury-stock and if-converted methods. Diluted net loss per share is calculated by dividing net loss by the weighted-average number of shares of common stock and potential dilutive securities outstanding during the period.

The following outstanding potentially dilutive securities were excluded from the calculation of diluted net loss per share attributable to common stockholders because their impact under the treasury stock method was anti-dilutive for the periods presented:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Stock options issued and outstanding under the 2021 Equity Incentive Plan		226,597		5,294,813		2,993,517		5,658,989
Restricted stock units issued under the 2021 Equity Incentive Plan		69,984		644,073		389,759		649,842
Stock issuable in offering period under the 2021 Employee Stock Purchase Plan		93,501		20,670		191,037		63,756

Revenue Recognition

The Company’s revenue is generated from the sale of LALs used in cataract surgery along with a specifically designed machine for delivering light to the eye, the LDD, to adjust the lens post-surgery, as needed. Revenue is recognized from sales of products in the U.S., and several foreign countries. Customers are comprised of ambulatory surgery centers, hospitals, and physician private practices in the United States and distributors internationally.

The Company recognizes revenue when promised goods or services are transferred to customers at a transaction price that reflects the consideration to which the Company expects to be entitled in exchange for those goods and services. Specifically, the Company applies the following five steps to recognize revenue: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when, or as, the Company satisfies a performance obligation. The Company applies the five-step model to contracts when it is probable that it will collect the consideration to which it is entitled in exchange for the goods or services it transfers to the customer. At contract inception, the Company assesses the goods promised within each customer contract to determine the individual deliverables in its product offerings as separate performance obligations and assesses whether each promised good or service is distinct. The transaction price is determined based on the consideration expected to be received, based either on the stated value in contractual arrangements or the estimated cash to be collected in non-contracted arrangements. The Company recognizes revenue as the amount of the transaction price that is allocated to the respective performance obligation when, or as, the performance obligation is satisfied, considering whether or not this occurs at a point in time or over time. The Company elected to account for shipping costs as fulfillment costs rather than a promised service and excludes from revenue any taxes collected from customers that are remitted to government authorities.

The Company’s LDD contracts contain multiple performance obligations bundled for one transaction price, with all obligations generally satisfied within one year. For these bundled arrangements, the Company accounts for individual products and services as separate performance obligations if they are distinct, that is, if a product or service is separately identifiable from other items in the bundled package, and if a customer can benefit from it on its own or with other resources that are readily available to the customer. The Company’s LDD contracts include a combination of the following performance obligations: (i) LDD capital asset and related components, (ii) training and (iii) device service (initial year). Each of these three performance obligations are considered distinct. The LDD capital asset is distinct because the customer can benefit from it together with other resources that are readily available to the customer. Training on the use of the machine is offered as a distinct activity after installation of the


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LDD to enhance the customer’s ability to utilize the machine by having an industry professional provide best practices and customize training to the specific needs of the customer. Each LDD comes with a twelve-month manufacturer’s warranty (service-type) that includes preventative maintenance, unscheduled service (labor and parts) and software updates. After the first year, service contracts can be purchased separately on a standalone basis. The Company recognizes revenue as performance obligations are satisfied by transferring control of the product or service to a customer. Revenue for the LDD capital asset is recognized at a point in time either at installation or upon shipment to our international distributors. Revenue for training is also recorded at a point in time, generally 60 days after installation. Revenue for the device service is recognized ratably over time after installation, generally 12 months. The Company has determined that the transaction price is the invoice price, net of adjustments, if any. The allocation to the separate performance obligations is based upon the relative standalone selling price. Standalone selling prices are based on observable prices at which the Company separately sells the products or services. The Company estimates the standalone selling price using the market assessment approach considering market conditions and entity-specific factors including, but not limited to, features and functionality of the products and services, geographies, type of customer and market conditions. The Company regularly reviews and updates standalone selling prices as necessary.

LALs are generally held at customer sites on consignment. The single performance obligation is satisfied, and revenue from sales is recognized for LALs upon customer notification that the LALs have been implanted in a patient or upon shipment to our international distributors. For the three and nine months ended September 30, 2025 and 2024, credits related to returns and rebates on list prices were not significant.

The Company has adopted the practical expedient permitting the direct expensing of costs incurred to obtain contracts where the amortization of such costs would occur over one year or less, and it applied to substantially all the Company’s contracts. Revenue for service agreements is recognized ratably over the term of each contract.

For the three and nine months ended September 30, 2025 and 2024, revenue from contracts with customers consisted of the following (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024

LDD (including training)	$	3,174	$	10,128	$	17,698	$	29,030
LAL		25,693		24,231		79,886		67,975
Service warranty, service contracts, and accessories		1,473		955		4,287		2,708

Total Sales	$	30,340	$	35,314	$	101,871	$	99,713

For the three and nine months ended September 30, 2025 and 2024, the Company did not have any customers who individually accounted for greater than 10% of revenue.

The following table represents the contract liabilities from sales activity for the nine months ended September 30, 2025 and 2024, respectively (in thousands):


	Nine Months Ended September 30,
	2025			2024

Balance at beginning of period	$	2,994		$	1,888
Additions during the period		4,218			3,301
Revenue recognized during the period		(3,876	)		(2,626	)
Balance at end of period	$	3,336		$	2,563

Stock-Based Compensation

The Company has two equity incentive compensation plans: the Calhoun Vision, Inc. 2015 Equity Incentive Plan (“2015 Plan”); and the 2021 Equity Incentive Plan (“2021 Plan”), which are collectively referred to as the


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“Equity Plans.” The Company also has an employee stock purchase plan, the 2021 Employee Stock Purchase Plan (“2021 ESPP”).

The Company recognizes compensation expense for equity-based awards on the date of grant to employees, board of directors and consultants based on the estimated grant date fair value of the award's equity-based payments including stock options, restricted stock units and employee stock plan purchases. The fair value of the option awards are estimated using the Black-Scholes option-pricing model and recognized as an expense in the condensed consolidated statements of operations and comprehensive loss over the requisite service period, which is generally four years. The Company amortizes the stock-based compensation for equity awards with service conditions on a straight-line basis over the vesting period of the awards. Forfeitures of unvested stock option awards are recognized as reductions of expense as they occur.

The Black-Scholes option-pricing model requires the use of assumptions about a number of variables, such as the fair market value of the Company’s common stock, expected volatility, expected term, risk-free interest rate, and dividend yield as discussed below:

Fair market value—The fair value of common stock is determined by using the closing price per share of common stock as reported on the Nasdaq Global Market.

Expected volatility—Effective January 1, 2024, the Company based the expected volatility on the historic volatility of its common stock.

Expected term—The Company’s expected term represents the period that the Company’s stock-based awards are expected to be outstanding. The Company used the simplified method (based on the mid-point between the vesting date and the end of the contractual term) to determine the expected term.

Risk-free interest rate—The risk-free interest rate used is based on the published U.S. Department of Treasury interest rates in effect at the time of stock option grant for zero coupon U.S. Treasury notes with maturities approximating each grant’s expected term.

Dividend yield—The Company has never paid dividends on its common stock and has no plans to pay dividends on its common stock. Therefore, the Company used an expected dividend yield of zero.

Recent Accounting Pronouncements

Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASU”). There have been no recent accounting pronouncements, changes in accounting pronouncements or recently adopted accounting guidance during the three months ended September 30, 2025 that are of significance or potential significance to the Company.

Note 3 – Short-Term Investments

Short-term investments, principally U.S. Treasury bills, are available-for-sale and consisted of the following (in thousands):


	As of September 30, 2025
	Amortized Cost		Unrealized Gain, Net		Estimated Fair Value
U.S. Treasury securities	$	197,816	$	67	$	197,883


	As of December 31, 2024
	Amortized Cost		Unrealized Gain, Net		Estimated Fair Value
U.S. Treasury securities	$	220,327	$	190	$	220,517

All available-for-sale securities held as of September 30, 2025 and December 31, 2024 had a maturity of less than one year. The Company has classified all marketable securities, regardless of maturity, as short-term


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investments based upon the Company’s ability and intent to use any and all of those marketable securities to satisfy the Company’s liquidity requirements.

Note 4 – Inventories

Inventories consisted of the following (in thousands):


	September 30,			December 31,
	2025			2024
Finished goods	$	18,620		$	12,029
Raw materials		7,360			7,109
Work-in-process		4,407			3,484
Total inventories, gross		30,387			22,622
Less: reserve for excess and obsolete inventory		(1,437	)		(613	)
Total inventories, net	$	28,950		$	22,009

At September 30, 2025 and December 31, 2024, finished goods included $6.0 million and $5.7 million of inventory held on consignment at customer sites, respectively.

Note 5 – Fair Value Measurements

The table and disclosures for the periods presented below (in thousands) present the Company’s assets and liabilities measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. The Company did not have any assets or liabilities measured at fair value on a recurring basis within Level 3 fair value measurements.


	As of September 30, 2025
	Level I		Level II		Total
Assets:
Money market securities	$	26,080			$	26,080
U.S. Treasury securities		—		197,883		197,883
Total assets at fair value	$	26,080	$	197,883	$	223,963


	As of December 31, 2024
	Level I		Level II		Total
Assets:
Money market securities	$	9,228		—	$	9,228
U.S. Treasury securities		—		220,517		220,517
Total assets at fair value	$	9,228	$	220,517	$	229,745

Note 6 – Stock-Based Compensation Expense

The Company has two equity incentive compensation plans.

2015 Plan

The 2015 Plan was originally adopted by the Board and approved by the Company’s stockholders in 2015. In July 2021, the 2015 Plan terminated immediately prior to effectiveness of the 2021 Plan with respect to the grant of future awards. However, the 2015 Plan will continue to govern the terms and conditions of the outstanding awards previously granted under the 2015 Plan.

2021 Plan

On July 28, 2021, the 2021 Plan was adopted and approved by the Board and stockholders. The 2021 Plan provides for the grant of incentive stock options to employees and any subsidiary corporations’ employees, and for the grant of nonstatutory stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), and performance awards to employees, directors, and consultants and subsidiary corporations’ employees and


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consultants. The number of shares of the Company’s common stock originally available for issuance under the 2021 Plan was equal to 6,989,665 shares of common stock.

The number of common shares reserved for issuance under the 2021 Plan will be increased automatically on the first day of each fiscal year beginning with the 2022 fiscal year and ending on the ten year anniversary of the date the Board approved the 2021 Plan, by a number equal to the lesser of: (i) 7,260,406 shares of the Company's common stock; (ii) 4% of the outstanding shares of the Company's common stock on the last day of the immediately preceding fiscal year; or (iii) such other amount as the administrator may determine. The 2021 Plan is administered by the Board, or a duly authorized committee thereof. On January 1, 2025 and 2024, the number of shares available under the 2021 Plan increased by 1,617,128 and 1,445,580 shares of common stock, respectively, pursuant to this feature. As of September 30, 2025, the number of shares of the Company’s common stock available for future issuance and not subject to outstanding awards under the 2021 Plan was equal to 473,702 shares of common stock.

2021 ESPP

On July 28, 2021, the Board and stockholders adopted and approved the 2021 ESPP. As of September 30, 2025, the number of shares of the Company’s common stock available for future issuance under the 2021 ESPP was equal to 463,240 shares of common stock. The initial purchase period began on November 1, 2021.

The 2021 ESPP provides eligible employees of the Company and its subsidiaries with the opportunity to purchase shares of the Company’s common stock at a purchase price equal to 85% of the common stock’s fair market value on the first trading day or last trading day of each purchase period, whichever is lower. The 2021 ESPP provides for two six-month purchase periods every twelve months: May 1 through October 31 and November 1 through April 30.

The number of common shares reserved for issuance under the 2021 ESPP will be increased automatically on the first day of each fiscal year beginning with the 2022 fiscal year, by a number equal to the lesser of: (i) 1,452,081 shares; (ii) 1% of the outstanding shares of the Company's common stock on the last day of the immediately preceding fiscal year; or (iii) such other amount as the administrator may determine. The 2021 ESPP is administered by the Board. The Board determined that no additional shares were reserved for issuance on January 1, 2025 and 2024 pursuant to this feature.

Stock-Based Compensation Expense

The purpose of the 2021 Plan and 2021 ESPP is to provide a means by which eligible recipients of stock awards may be given an opportunity to benefit from increases in the value of the common stock in order to retain or procure the services of the employees, members of the Board and consultants and provide them with an incentive to promote the Company’s success and accomplish corporate goals.

Stock option awards are granted with an exercise price of no less than 100% of estimated fair market value on the date of grant. Time based awards generally vest over four years as follows, subject to the optionee’s continuing service: (i) one fourth of the total number of shares vest and become exercisable on the one-year anniversary and then 1/48th of the total number of shares subject to the option vest and become exercisable on each monthly anniversary thereafter for the remaining three years, or (ii) 1/48th of the total number of shares subject to the option vest and become exercisable each month over four years.

A summary of the stock option activities related to the 2021 Plan for the nine months ended September 30, 2025 is presented below:


	Number of Options			Weighted Average Exercise Price		Weighted Avg Remaining Contractual Life (Years)
Options outstanding as of December 31, 2024		5,906,298		$	22.07		6.92
Granted		1,446,932			25.34
Exercised		(340,385	)		6.43
Forfeited		(183,149	)		26.99
Expired		(74,757	)		17.98
Options outstanding as of September 30, 2025		6,754,939			23.46		6.96
Exercisable as of September 30, 2025		4,164,977		$	18.98		5.86


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As of September 30, 2025 and December 31, 2024 the intrinsic value of options vested was $1.0 million and $69.3 million, respectively, and of all options outstanding was $1.1 million and $94.4 million, respectively. During the nine months ended September 30, 2025 and 2024, the total cash received from the exercise of stock options was $2.2 million and $17.1 million, respectively. The total fair value less strike price of these options was $4.3 million and $75.1 million, respectively.

A summary of non-vested restricted stock unit activities for the nine months ended September 30, 2025 is as follows:


				Weighted
				Average
	Number of			Grant Date
	Shares			Fair Value

Unvested at December 31, 2024		585,458		$	30.64
Granted		715,278			21.59
Vested		(380,375	)		24.55
Forfeited		(73,782	)		28.99
Unvested at September 30, 2025		846,579		$	25.88

Stock-based compensation expense was classified in the accompanying condensed consolidated statements of operations and comprehensive income (loss) as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Research and development	$	2,048	$	1,559	$	6,010	$	4,060
Selling, general and administrative		5,340		4,446		15,775		11,856
Cost of sales		720		547		2,010		1,437
	$	8,108	$	6,552	$	23,795	$	17,353

As of September 30, 2025 and December 31, 2024, there were 2,589,962 and 2,343,015 unvested options, respectively. As of September 30, 2025 and December 31, 2024, total unrecognized expense related to unvested stock options was approximately $49.8 million and $45.8 million, respectively. Both amounts are expected to be recognized over a weighted average period of approximately 2.6 and 2.4 years, respectively.

As of September 30, 2025, and December 31, 2024, total unrecognized expense related to non-vested restricted stock units was approximately $21.0 million and $15.0 million, respectively. The unrecognized compensation cost is expected to be recognized over a weighted average period of 2.3 years and 2.2 years, respectively.

The following table presents the range and weighted-average assumptions, used in the Black-Scholes option pricing model to determine the fair value of stock options:


	Nine Months Ended September 30,
	2025		2024
	Range	Weighted Average	Range	Weighted Average
Expected volatility	52.0% to 74.0%	66.3%	67.8% to 72.3%

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Non-accelerated filer

Smaller reporting company

Emerging growth company

RxSight, Inc. 10-Q