Company: AIP
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001628280-25-048977
Chunk: 261

Company: Arteris, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 261
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 the fair market value of our common stock on the purchase date.As of September 30, 2025 there was $0.1 million of unamortized stock-based compensation cost related to ESPP, which is expected to be recognized over a weighted average period of 0.1 years.Stock-based CompensationStock-based compensation expense is recorded on a departmental basis, based on the classification of the award holder. The following table presents the amount of stock-based compensation related to stock-based awards to employees on the Company’s unaudited condensed consolidated statements of operations (in thousands):Three Months EndedSeptember 30,Nine Months EndedSeptember 30,2025202420252024Cost of revenue$228 $221 $665 $596 Research and development2,095 2,154 5,994 5,550 Sales and marketing1,335 850 3,352 2,230 General and administrative1,298 1,165 3,754 3,431 Total stock-based compensation$4,956 $4,390 $13,765 $11,807 

12.    EQUITY METHOD INVESTMENT

On February 21, 2022, Arteris IP (Hong Kong) Ltd. (AHK), a wholly-owned subsidiary of the Company, entered into a Share Purchase and Shareholders Agreement with certain investors and Ningbo Transchip Information Consulting Partnership (Limited Partnership) (Management Co), pursuant to which, the Company, certain investors and Management Co subscribed to the registered capital of Transchip Technology (Nanjing) Co., Ltd. (Transchip). The Company’s ownership interest in Transchip’s registered capital was 35.0% on a fully diluted basis as of September 30, 2025. The Company’s loss from its proportionate share of its equity method investment in Transchip was $0.5 million and $0.6 million for the three months ended September 30, 2025 and 2024, respectively, and $2.1 million for both the nine months ended September 30, 2025 and 2024. In September 2025, Transchip entered into a convertible bond investment agreement along with certain investors,  under which Transchip received approximately $5.6 million as a loan in October 2025. Pursuant to the convertible bond investment agreement, the loan will be converted into Transchip’s equity upon the fulfillment of certain conditions, which will result