Company: AIP
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001667011-25-000029
Chunk: 263

Company: Arteris, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 263
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 purchase the shares at a price per share equal to 85% of the lesser of (1) the fair market value of our common stock on the offering date or (2) the fair market value of our common stock on the purchase date.As of June 30, 2025, there was $0.2 million of unamortized stock-based compensation cost related to ESPP, which is expected to be recognized over a weighted average period of 0.4 years.The fair value of common stock to be issued under the 2021 ESPP is estimated on the first day of the offering period using the Black-Scholes option-pricing model, which uses (i) a risk-free interest rate based on the U.S. Treasury zero-coupon issues for an expected term equivalent to the offering period; (ii) expected term based on the simplified method; (iii) volatility based on historical volatility of the Company’s common stock; and (iv) an expected dividend yield of zero as the Company has never declared or paid any cash dividend and does not currently plan to pay a cash dividend in the foreseeable future.The following table summarizes the ESPP valuation assumptions:Six Months Ended June 30,20252024Expected volatility72.0%74.4%Expected term (in years)0.50.5Risk-free interest rate4.3%5.4%Expected dividend yield0%0%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 EndedJune 30,Six Months EndedJune 30,2025202420252024Cost of revenue$232 $186 $437 $375 Research and development1,926 1,788 3,898 3,396 Sales and marketing1,048 657 2,017 1,380 General and administrative1,291 1,129 2,457 2,266 Total stock-based compensation$4,497 $3,760 $8,809 $7,417 

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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