STOCK-BASED COMPENSATION (Table)

12 Months Ended

Dec. 31, 2025

Share-Based Payment Arrangement [Abstract]

Summary of Stock-Based Compensation Expense

The following table sets forth the total stock-based compensation expense related to stock options and RSUs included in the respective components of operating expenses in the consolidated income statements:


	Year Ended December 31,
(in thousands)	2025		2024 (1)		2023
Research and development	$	1,485	$	1,781	$	2,463
Clinical Operations		400		293		455
Sales and Marketing		1,748		1,860		1,722
General and administrative		4,812		5,239		3,755
Total stock-based compensation expense	$	8,445	$	9,173	$	8,395

(1)

During the year ended December 31, 2024, the Company modified certain equity awards in connection with certain key executives' separation from the Company and recognized $1.2 million of additional stock-based compensation expense as a result of these modifications.

Summary of Stock Option Activity Under 2021 Plan

summarizes the activity for stock options for the year ended December 31, 2025:


	Year Ended December 31, 2025
	Number of options			Weighted average exercise price		Weighted average remaining contractual term (in years)		Aggregate intrinsic value (1) (in thousands)
Outstanding at beginning of year		9,725,095		$	2.93		6.39	$	12,974
Granted		1,147,500		$	2.81
Exercised		(1,167,495	)	$	0.78
Expired		(547,171	)	$	5.55
Forfeited		(67,779	)	$	2.44
Outstanding at end of year		9,090,150		$	3.04		6.55	$	14,169
Exercisable at end of year		7,379,105		$	3.23		6.13	$	11,735

(1)

The aggregate intrinsic value of stock options outstanding and exercisable at end of year does not include 2,267,953 of stock options that are out of the money.

Summary of Fair Value of Option Granted Share-based Payment Award Stock Options Valuation Assumptions

The fair value for options granted for the years ended December 31, 2025, 2024 and 2023 was estimated on the date of grant using a Black-Scholes-Merton options pricing model with the following weighted average assumptions:


	Year Ended December 31,
	2025	2024	2023
Dividend yield	0%	0%	0%
Expected volatility	67.88% - 68.79%	60.81% - 61.65%	58.63% - 68.40%
Risk-free interest rate	3.73%-4.09%	3.71%-4.19%	3.70%-4.22%
Expected term (years)	5.3 - 6.06	5.27 - 6.11	5.23 - 6.25

As of December 31, 2025, there was $2.3 million of total unrecognized compensation cost related to non-vested stock options that are expected to be recognized over a weighted average period of 2.3 years.

Summary of Stock Option Activity Under Restricted Stock Units

The following table summarizes the activity for RSUs for the year ended December 31, 2025:


	Year Ended December 31, 2025
	Number of restricted stock units			Weighted average grant-date fair value
Nonvested at beginning of year		7,027,075		$	1.73
Granted		2,722,473		$	2.91
Vested		(3,628,229	)	$	2.02
Forfeited		(595,993	)	$	2.00
Nonvested at end of year		5,525,326		$	2.17

Talkspace, Inc. 10-K