Company: INSP
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001609550-25-000053
Chunk: 84

Company: Inspire Medical Systems, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 8
Chunk 84
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ire Medical Systems, Inc. 2018 Incentive Award Plan upon the holder's death, disability, or retirement. No accelerated stock-based compensation expense related to the implementation was recorded during the three-month period ended September 30, 2025. Stock OptionsStock options are granted to employees at the exercise price, which is equal to the closing price of our stock on the date of grant. The stock options include a four-year service period and 25% vest after the first year of service and the remainder vest in equal monthly installments over the next 36 months of service. Unvested options are forfeitable in the event of termination other than for death, disability, or qualifying retirement. Upon death, disability or qualifying retirement, all outstanding and unvested options accelerate and become fully vested. The stock options have a contractual life of ten years.The fair value per share of options is estimated on the date of grant using the Black-Scholes option pricing model. There were no stock options granted during the three and nine-month period ended September 30, 2025.Stock Option ActivityOptionsWeighted AverageExercise PriceWeighted AverageRemainingContractual Term(years)Aggregate IntrinsicValue (in thousands)Outstanding at December 31, 20242,160,149 $168.33 6.4$89,052Granted— $— Exercised(149,997)$71.25 $13,168Forfeited/expired(78,203)$226.23 Outstanding at September 30, 20251,931,949 $173.49 5.7$39,568Exercisable at September 30, 20251,633,700 $164.40 5.3$39,568The aggregate intrinsic value of options exercised is the difference between the estimated fair market value of our common stock at the date of exercise and the exercise price for those options. The aggregate intrinsic value of outstanding options is the difference between the closing price as of the date outstanding and the exercise price of the underlying stock options. As of September 30, 2025, the amount of unearned stock-based compensation currently estimated to be expensed from now through the year 2028 related to unvested stock options is $34.0 million, which we expect to recognize over a weighted average period of 1.5 years. 

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Table of ContentsInspire Medical Systems, Inc. Notes to Consolidated Financial Statements (unaudited