Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Summary of Estimate of the Fair Value of Stock Option

The following assumptions were used to estimate the fair value of stock options for the nine months ended September 30, 2023:


	Nine Months Ended September 30,
		2023

Risk-free interest rate		3.91% - 4.27%
Expected dividend yield		—
Expected term in years		5.5 - 5.6
Expected volatility		75% - 85%

Summary of Stock Option Activity

The Company's stock option activity for the nine months ended September 30, 2024 was as follows:


	Stock Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 2023	1,904,723	$	1.98	7.8	$	—
Options granted	—	—
Options exercised	—	—			$	—
Options forfeited	(1,395,921)	1.34
Outstanding as of September 30, 2024 (unaudited)	508,802	$	3.72	7.6	$	—
Options vested and exercisable as of September 30, 2024 (unaudited)	508,802	$	3.72	7.6	$	—

Summary of RSU Activity

The Company’s RSU activity for the nine months ended September 30, 2024 was as follows:


	Number of Shares	Weighted Average Grant Price
Unvested as of December 31, 2023	2,185,330	$	2.18
Granted	—	—
Forfeited	(1,286,853)	2.51
Vested	(898,477)	1.70
Unvested as of September 30, 2024 (unaudited)	—	$	—

Summary of the Total Stock-Based Compensation Expense for the Stock Options, PSUs and RSAs Recorded in the Condensed Consolidated Statements of Operations and Comprehensive Loss

The following table summarizes the total stock-based compensation expense for the stock options, PSUs, RSUs, RSAs and ESPP expense recorded in the condensed consolidated statements of operations and comprehensive income (loss) for the three months ended September 30, 2024 and 2023 (in thousands):


	Three Months Ended September 30,				Three Months Ended September 30, 2024				Three Months Ended September 30, 2023
	2024		2023		Continuing Operations		Discontinued Operations		Continuing Operations		Discontinued Operations
	(unaudited)				(unaudited)				(unaudited)
Cost of products sold	$	21	$	146	$	21	$	—	$	—	$	146
Research and development	—		317		—		—		11		306
Selling, general and administrative	107		815		107		—		241		574
Total stock-based compensation	$	128	$	1,278	$	128	$	—	$	252	$	1,026

As noted above during September 2024, the Company's board of directors approved accelerated vesting of the remaining unvested stock options and RSUs. This was considered a Type 1 equity modification. The fair value of the modified awards was determined using the Black-Scholes option pricing model on the date of the modification and the resulting incremental stock-based compensation of less than $0.1 million was recorded as of September 30, 2024, in the Company's condensed consolidated statements of operations.

The following table summarizes the total stock-based compensation expense for the stock options, PSUs, RSUs, RSAs and ESPP expense recorded in the condensed consolidated statements of operations and comprehensive income (loss) for the nine months ended September 30, 2024 and 2023 (in thousands):


	Nine Months Ended September 30,				Nine Months Ended September 30, 2024				Nine Months Ended September 30, 2023
	2024		2023		Continuing Operations		Discontinued Operations		Continuing Operations		Discontinued Operations
	(unaudited)				(unaudited)				(unaudited)
Cost of products sold	$	(89)	$	373	$	53	$	(142)	$	—	$	373
Research and development	(559)		999		—		(559)		36		963
Selling, general and administrative	(617)		3,543		406		(1,023)		1,236		2,307
Total stock-based compensation	$	(1,265)	$	4,915	$	459	$	(1,724)	$	1,272	$	3,643

Acutus Medical, Inc. 10-Q