Company: INSP
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001609550-25-000011
Chunk: 110

Company: Inspire Medical Systems, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 8
Chunk 110
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 exercise, forfeiture, and expiration activity, we have opted to use the "simplified method" for estimating the expected term of options, whereby the expected term equals the arithmetic average of the vesting terms and the original contractual term of the option. We will continue to analyze our expected term assumption as more historical data becomes available.Expected Volatility — During the year ended December 31, 2024, we based expected volatility on the historic volatility of our common stock. Prior to 2024, due to our limited company specific historical and implied volatility data, we incorporated our historical stock trading volatility with those of a group of similar companies that are publicly traded for the calculation of volatility. When selecting this peer group, we generally selected companies with comparable characteristics, including enterprise value, stages of clinical development, risk profiles, position within the industry, and those with historical share price information sufficient to meet the expected life of the stock-based awards.Risk-Free Interest Rate — The risk-free rate assumption is based on the U.S. government Treasury instruments with maturities similar to the expected term of our stock options.Expected Dividend Yield — The expected dividend assumption is based on our history of not paying dividends and our expectation that we will not declare dividends for the foreseeable future.Stock Option ActivityOptionsWeighted AverageExercise PriceWeighted averageremainingcontractual term(years)Aggregate intrinsicvalue (in thousands)Outstanding at December 31, 20212,646,235 $80.41 7.1$397,015 Granted500,148 $217.85 Exercised(416,602)$29.00 $73,036 Forfeited/expired(69,047)$161.48 Outstanding at December 31, 20222,660,734 $112.19 6.9$372,068 Granted441,394 $257.22 Exercised (595,188)$45.09 $105,952 Forfeited/expired(59,799)$214.61 Outstanding at December 31, 20232,447,141 $152.17 7.0$160,691 Granted247,048 $177.99 Exercised(387,856)$62.37 $49,221 Forfeited/expired(146,184)$195.27 Outstanding at December 31, 20242,160,149 $168.33 6.4$