Company: CALX
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001406666-25-000008
Chunk: 165

Company: CALIX, INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 165
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 of the Company’s stock-based awards granted in the periods indicated:Years Ended December 31,202420232022Stock options$17.21 $23.02 $31.86 ESPP$10.53 $17.96 $18.51 NQ ESPP$33.66 $42.51 $52.91 The Company values employee stock purchase rights under the NQ ESPP at the closing market price of the Company’s common stock on the date of grant.The Company estimates the fair value of stock options and employee stock purchase right under the ESPP at the grant date using the Black-Scholes option-pricing model. This model requires the use of the following assumptions:(i)Expected volatility of the Company’s common stock – The Company computes its expected volatility assumption based on a blended volatility (50% historical volatility and 50% implied volatility from traded options on the Company’s common stock). The selection of a blended volatility assumption was based upon the Company’s assessment that a blended volatility is more representative of the Company’s future stock price trend as it weighs the historical volatility with the future implied volatility.(ii)Expected life of the option award – Represents the weighted-average period that the stock options are expected to remain outstanding. The Company’s computation of expected life utilizes the simplified method in accordance with Staff Accounting Bulletin No. 110 due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. The mid-point between the vesting date and the expiration date is used as the expected term under this method.(iii)Expected dividend yield – The assumption is zero based on the Company’s history of not paying dividends and no future expectations of dividend payouts.(iv)Risk-free interest rate – Based on the U.S. Treasury yield curve in effect at the time of grant with maturities approximating the grant’s expected life.The following table summarizes the weighted-average assumptions used in estimating the grant-date fair value of stock options and of each employee’s purchase right under the ESPP in the periods indicated:Years Ended December 31,Stock Options202420232022Expected volatility51 %52 %58 %Expected life (years)6.06.16.1Risk-free interest rate4.27 %4.02 %3.15 %Years Ended December 31,ESPP202420232022Expected volatility48 %47 %62 %Expected life (years)0.50.50.5Risk-free interest rate