IRADIMED CORP Stock Compensation Disclosure
7 — Stock-Based Compensation
In April 2014, our Board of Directors adopted and our stockholders approved the 2014 Equity Incentive Plan (“2014 Plan”). Upon adoption and approval of the 2014 Plan, the previous equity incentive plan was terminated and the remaining shares available for future awards were canceled. The 2014 Plan initially reserved 1,000,000 shares of our common stock for awards of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, RSUs, performance awards and other stock-based and cash awards. On June 12, 2020, the stockholders approved an amendment to the 2014 Plan, which reserved an additional 1,000,000 shares of our common stock for the various equity awards mentioned above. The 2014 Plan expired in April 2024 and the remaining shares available for granting future awards were cancelled.
On June 15, 2023, our Board of Directors adopted, and our stockholders approved the 2023 Equity Incentive Plan (“2023 Plan”). The 2023 Plan reserves 1,500,000 shares of our common stock for awards of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, RSUs, performance awards and other stock-based awards. As of December 31, 2025, there were 1,298,630 shares available for future granting and vesting of awards under the 2023 Plan. The 2023 Plan will expire on June 15, 2033, when any remaining shares available for future awards will be cancelled.
Stock-based compensation was recognized as follows in the Statements of Operations:
| Year Ended | |||||||||
December 31, | ||||||||||
| | 2025 | | 2024 | ||||||
(in thousands) | ||||||||||
Cost of revenue | $ | 288 | $ | 244 | ||||||
General and administrative |
| 1,720 |
| 1,534 | ||||||
Sales and marketing |
| 631 |
| 528 | ||||||
Research and development |
| 280 |
| 218 | ||||||
Total | $ | 2,919 | $ | 2,524 | ||||||
Stock Options
The Company previously maintained the 2014 Plan, which provided for the grant of stock options and other equity-based awards to employees and directors.
As of December 31, 2025, all stock options previously granted under the 2014 Plan have either been exercised, forfeited, or have expired according to their original terms. During the years ended 2025 and 2024, there were no stock options granted, outstanding, or exercised.
All compensation expense related to previous awards was fully recognized in prior periods, and there was no share-based compensation expense recorded during the years ended 2025 and 2024. As of December 31, 2025, there are no unrecognized compensation costs related to share-based payment arrangements for stock options.
Restricted Stock Units
The following table presents a summary of our RSU activity as of and for the year ended December 31, 2025:
| Restricted | | Weighted-Average | ||
Stock | Grant Date | ||||
| Units |
| Fair Value | ||
Unvested at December 31, 2024 |
| 134,580 |
| $ | 41.61 |
Granted |
| 17,876 |
| $ | 89.76 |
Vested |
| (63,105) |
| $ | 37.75 |
Cancelled/Forfeited |
| (6,559) |
| $ | 46.52 |
Unvested at December 31, 2025 |
| 82,792 |
| $ | 54.54 |
As of December 31, 2025, we had $3.9 million of unrecognized compensation cost related to the unvested RSUs, which is expected to be recognized over a weighted-average period of 2.55 years.
Performance-Based Restricted Stock Units
The following table presents a summary of our PSU activity as of and for the year ended December 31, 2025:
Performance-Based | Weighted-Average | ||||
Restricted | Grant Date | ||||
| Stock Units | | Fair Value | ||
Unvested at December 31, 2024 |
| 44,251 |
| $ | 53.54 |
Granted |
| — |
| $ | |
Vested |
| (19,716) |
| $ | 38.41 |
Cancelled/Forfeited |
| — |
| $ | — |
Unvested at December 31, 2025 |
| 24,535 |
| $ | 65.34 |
During the year ended December 31, 2025, the Company awarded no PSUs. During the year ended December 31, 2024, the Company awarded 12,272 PSUs. The awards will vest three years from the award date based on the achievement of certain performance criteria approved by the Compensation Committee.
Based on the level of achievement of the performance criteria at the end of the three years for each of the PSUs awarded, the number of shares earned can range from zero to 200 percent of the remaining shares outstanding; therefore, the maximum number of shares that can be issued under these awards is twice the original remaining outstanding awards of 24,535 PSUs, or 49,070 shares. Currently, for accounting purposes, we assume the full 49,070 are probable.
For the year ended December 31, 2025, the Company recognized $0 in stock compensation expense related to PSUs granted in 2025 compared to $0.02 million in stock compensation expense for the same period recognized in 2024 related to the 12,272 PSUs granted in December 2024.
For the year ended December 31, 2024, the grant date fair value of the PSUs was $71.41 per unit, which was calculated using a Monte-Carlo simulation model with an expected term of three years and a risk-free interest rate of 4.13%. The Monte-Carlo simulation incorporated the volatility and dividend yield for the Company and the Nasdaq US Small Cap Medical Equipment Index. Index volatility was 31.0% and dividend yield was 1.0%. The volatility and dividend yield used for the Company was 46.8% and 1.0%, respectively.
As of December 31, 2025, we had $0.79 million of unrecognized compensation cost related to the unvested PSUs, which is expected to be recognized over a weighted-average period of 1.66 years.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 6, 2026 | Showing above |
| 2024 | Mar 6, 2025 | |
| 2023 | Mar 1, 2024 | |
| 2022 | Mar 2, 2023 | |
About Stock Compensation Disclosures
Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.
Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.