Company: AAOI
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437749-25-025450
Chunk: 119

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 119
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 Share-Based Compensation
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   Equity Plans
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   The Company’s board of directors and stockholders approved the following equity plans:
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     ●  the 2013 Equity Incentive Plan ("2013 Plan") 

     ●  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.
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       18

   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  June 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 six months ended  June 30, 2025 and 2024 of $2.1 million and $4.8 million, respectively. 
    
   The following is a summary of PSU activity for the six months ended  June 30, 2025:

     ​   ​  Weighted       ​ 
 ​   ​    Average    Weighted    Aggregate  
 ​   Number of    Exercise    Average    Intrinsic  
 ​   shares    Price    Fair Value