Company: ALGN
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001097149-25-000034
Chunk: 135

Company: ALIGN TECHNOLOGY INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 135
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 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 31, 20251,351 $260.72 2.0$214,594 As of March 31, 2025, we expect to recognize $293.0 million of total unamortized compensation costs, net of estimated forfeitures, related to RSUs over a weighted average period of 3.1 years.

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Market-Performance Based Restricted Stock Units (“MSUs”)We grant MSUs to members of senior management. Each MSU represents the right to one share of our common