Company: ALGN
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001097149-25-000034
Chunk: 56

Company: ALIGN TECHNOLOGY INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 56
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 other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. Several of these agreements limit the time within which an indemnification claim can be made and the amount of the claim.It is not possible to make a reasonable estimate of the maximum potential amount of future payments, if any, under these indemnification agreements due to the unique facts and circumstances involved in each particular agreement. Additionally, we have a limited history of prior indemnification claims and the payments we have made under such agreements have not had a material adverse effect on our results of operations, cash flows or financial position. However, to the extent that valid indemnification claims arise in the future, future payments by us could be significant and could have a material adverse effect on our results of operations or cash flows in a particular period. As of March 31, 2025, we did not have any material indemnification claims that were probable or reasonably possible.

Note 9. Stockholders’ Equity

As of March 31, 2025, the Align Technology, Inc. 2005 Incentive Plan, as amended, has a total reserve of 32,168,895 shares, of which 1,877,934 shares are available for issuance.Summary of Stock-Based Compensation ExpenseThe stock-based compensation related to our stock-based awards and employee stock purchase plan for the three months ended March 31, 2025 and 2024 is as follows (in thousands): Three Months EndedMarch 31, 20252024Cost of net revenues$1,538 $2,064 Selling, general and administrative30,866 28,494 Research and development12,593 8,230 Total stock-based compensation$44,997 $38,788 Restricted Stock Units (“RSUs”)The fair value of RSUs is based on our closing stock price on the date of grant. RSUs granted generally vest over a period of four years. A summary for the three months ended March 31, 2025 is as follows:Number of SharesUnderlying RSUs(in thousands)Weighted Average Grant Date Fair ValueWeighted Average RemainingContractual Term (in years)Aggregate Intrinsic Value(in thousands)Unvested as of December 31, 20241,019 $331.10 Granted650 197.93 Vested and released(286)362.30 Forfeited(32)318.19 Unvested as of March