Company: AAOI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001437749-25-033627
Chunk: 33

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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"), 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  September 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 nine months ended  September 30, 2025 and 2024 of $3.3 million and $5.8 million, respectively. 
    
   The following is a summary of PSU activity for the nine months ended  September 30, 2025:

          Weighted         
      Average    Weighted    Aggregate  
   Number of    Exercise    Average    Intrinsic  
   shares    Price    Fair Value    Value  
   (in thousands, except price data and Contractual Life)  
 Outstanding at January 1, 2025   1,447   —  $7.72  $53,347 
 Granted   719   —   6.94   8,851 
 Exercised   (978) $14.76   2.48   14,431 
 Forfeited   —   —   —   — 
 Outstanding, September 30, 2025   1,189   —   11.55   30,541 
 Vested and expected to vest   1,189   —  $11.55  $30,541 

   As of  September 30, 2025, there was $6.2 million of unrecognized stock-based compensation expense related to outstanding PSUs, which expense is expected to be recognized over 1.9 years.
    
   Restricted Stock Units
    
   The following is a summary of RSU activity:

          Weighted        
      Average Share    Weighted    Aggregate