Axogen, Inc. Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Stock-Based Compensation (Tables)

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of stock-based compensation expense of consolidated statements

Stock-based compensation expense is included in the following line items on the accompanying Consolidated Statements of Operations for the years ended:


	December 31,
(in thousands)		2024		2023		2022
Cost of goods sold		$	1,752	$	796	$	215
Sales and marketing		3,175		2,982		2,341
Research and development		3,417		3,875		2,640
General and administrative		7,562		6,764		10,395
Total stock-based compensation expense		$	15,906	$	14,418	$	15,591

Schedule of weighted-average assumptions for options granted

The following weighted-average assumptions were used in the calculation of fair value for stock options granted for the following periods:



	Year Ended December 31,
	2024		2023		2022
Expected term (in years)	5.48		5.40		6.01
Expected volatility	65.60	%	59.32	%	61.17	%
Risk free interest rate	4.19	%	3.52	%	2.31	%
Expected dividends	—	%	—	%	—	%

The following are the weighted average assumptions used in the valuation of ESPP options for the years ended December 31:


	December 31,

	2024	2023	2022
Expected term (in years)	0.5	0.5	0.5
Expected volatility	70.2%	53.6%	66.5%
Risk-free interest rate	5.3%	5.1%	1.1%
Expected dividends	—%	—%	—%

Schedule of stock option activity

The following table summarizes the Company's stock option activity for the year ended December 31, 2024:


	Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2023	4,372,243	$	12.87	6.43	$	87
Granted (1)	164,684	$	7.35
Forfeited (2)	(455,144)	$	16.46
Exercised	(154,831)	$	8.63
Outstanding at December 31, 2024	3,926,952	$	12.39	4.56	$	22,692

Exercisable at December 31, 2024	2,574,651	$	14.37	3.53	$	11,933

(1) Options granted include 18,700 inducement shares in accordance with Nasdaq Listing Rule 5635(c)(4).

(2) Options forfeited include 65,800 inducement shares in accordance with Nasdaq Listing Rule 5635(c)(4).

Schedule of stock unit activity

The following table summarizes the activity for RSUs for the year ended December 31, 2024:


	Outstanding Restricted Stock Units
	Restricted Stock Units	Weighted Average Fair Value at Date of Grant per Share		Weighted Average Remaining Vesting Life (Years)	Aggregate Intrinsic Value (in thousands)
Unvested at December 31, 2023	2,335,230	$	9.00	1.39	$	15,950
Granted (1)	1,010,671	$	8.79
Vested and released	(703,060)	$	9.45
Forfeited (2)	(284,518)	$	9.04
Unvested at December 31, 2024	2,358,323	$	8.77	1.17	$	38,865

(1) RSUs granted include 330,000 inducement shares in accordance with Nasdaq Listing Rule 5635(c)(4).

(2) RSUs forfeited include 37,500 inducement shares in accordance with Nasdaq Listing Rule 5635(c)(4).

The following table summarizes the activity for PSUs for the year ended December 31, 2024:


	Outstanding Performance Stock Units
	Performance Stock Units	Weighted Average Fair Value at Date of Grant per Share		Weighted Average Remaining Vesting Life (Years)	Aggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 2023	1,257,412	$	11.69	1.76	$	8,588
Granted (1)	1,904,668	$	9.11
Released	(9,681)	$	25.14
Forfeited	(190,107)	$	14.05
Outstanding as of December 31, 2024	2,962,292	$	9.84	1.64	$	48,819
Vested and deferred	728,749	$	8.24	—	$	12,010

(1) PSUs granted include 600,000 inducement shares in accordance with Nasdaq Listing Rule 5635(c)(4).