Company: ALGN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001097149-25-000064
Chunk: 22

Company: ALIGN TECHNOLOGY INC
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 1
Chunk 22
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 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 June 30, 2025, we did not have any material indemnification claims that were probable or reasonably possible.

Note 9. Stockholders’ Equity

As of June 30, 2025, the Align Technology, Inc. 2005 Incentive Plan, as amended, has a total reserve of 32,168,895 shares, of which 1,893,259 shares are available for issuance.Summary of Stock-Based Compensation ExpenseStock-based compensation related to our stock-based awards and employee stock purchase plan for the three and six months ended June 30, 2025 and 2024 is as follows (in thousands): Three Months EndedJune 30,Six Months EndedJune 30, 2025202420252024Cost of net revenues$1,636 $2,582 $3,174 $4,646 Selling, general and administrative33,485 34,274 64,351 62,768 Research and development13,087 10,172 25,680 18,402 Total stock-based compensation$48,208 $47,028 $93,205 $85,816 Restricted Stock Units (“RSUs”)The fair value of RSUs is based on the closing price of our stock on the date of grant. Generally, RSUs vest over a period of four years. A summary for the six months ended June 30, 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 Granted670 197.17 Vested and released(301)358.16 Forfeited(60)292