Company: AAOI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001437749-25-033627
Chunk: 127

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 127
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 equity plans:
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     ●  the 2021 Equity Incentive Plan ("2021 Plan") 
 ●the 2023 Equity Inducement Plan ("Inducement Plan")

   The Company has issued stock options, restricted stock awards ("RSAs") and restricted stock units ("RSUs") to employees, consultants and non-employee directors. Stock option awards generally vest over a four-year period and have a maximum term of ten years. Stock options under these plans have been granted with an exercise price equal to the fair market value on the date of the grant. Nonqualified and Incentive Stock Options, RSAs and RSUs  may be granted from these plans.
   ​

       17

   Performance Based Incentive Plan
    
   ​Starting in 2021, certain senior executives were granted performance stock units ("PSUs") under our Amended and Restated 2021 Equity Incentive Plan ("2021 Plan"), which generally vest over a three-year period subject to achievement of certain pre-established performance metrics. The number of shares of common stock that would ultimately be issued to settle PSUs granted ranged from 0% to 200% of the target number of shares granted. We estimate the fair value of the PSUs on the date of grant using a Monte Carlo simulation model, with stock-based compensation expense recognized ratably over the applicable three-year performance period. The Company recognized  stock-based compensation expense for the PSUs for the three months ended  September 30, 2025 and 2024 of $1.2 million and $3.8 million, respectively. The Company recognized  stock-based compensation expense for the PSUs for the nine months ended  September 30, 2025 and 2024 of $3.3 million and $5.8 million, respectively. 
    
   The following is a summary of PSU activity for the nine months ended  September 30, 2025:

          Weighted         
      Average    Weighted    Aggregate  
   Number of    Exercise    Average    Intrinsic  
   shares    Price    Fair Value    Value  
   (in thousands, except price data and Contractual Life)  
 Outstanding at January 1, 2025   1,447   —  $7.72  $53,347 
 Granted   719   —