Company: APPN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001441683-25-000068
Chunk: 86

Company: APPIAN CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 8
Chunk 86
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 the total compensation cost related to unvested stock options not yet recognized, which relates exclusively to the 2022 CEO option grant, was $2.1 million and will be recognized over a weighted average period of 0.6 years. Total unrecognized compensation cost related to unvested RSUs was approximately $47.7 million, which will be recognized over a weighted average period of 1.8 years.In 2025, we changed our annual bonus program to provide eligible employees with the option to receive all or a portion of their earned annual bonuses for 2025, otherwise payable in cash, in the form of RSUs. The RSUs will be granted by our Board of Directors during the first quarter of 2026 and will be fully vested upon grant. The portion of the 2025 annual bonus to be paid in the form of RSUs is recorded as stock-based compensation expense while the related obligations are recorded as liabilities in the ‘Accrued compensation and related benefits’ line item on our consolidated balance sheets. During the three and nine months ended September 30, 2025, we recognized $1.4 million and $4.3 million of stock-based compensation related to this program, respectively.The following table summarizes the components of our stock-based compensation expense for the three and nine months ended September 30, 2025 and 2024 (in thousands):Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Cost of revenueSubscriptions$224 $211 $672 $641 Professional services1,399 1,325 4,161 4,364 Operating expensesSales and marketing1,827 1,746 6,050 6,270 Research and development2,915 2,939 9,139 8,859 General and administrative3,895 3,284 10,970 9,877 Total stock-based compensation expense$10,260 $9,505 $30,992 $30,011 

11. Basic and Diluted Earnings (Loss) per ShareBasic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the reporting period. Diluted earnings (loss) per share is computed similar to basic, except the weighted average number of common shares outstanding is increased to include additional 

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outstanding shares from the assumed exercise of stock options and vesting of RSUs, if