Company: PHAT
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0000950170-25-034183
Chunk: 118

Company: Phathom Pharmaceuticals, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 16
Chunk 118
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 the Company established a 401(k) savings plan. The Company’s contributions to the plan are discretionary. During the years ended December 31, 2024 and 2023, the Company incurred $5.1 million and $1.9 million, respectively, of expense related to estimated employer contribution liabilities, which was based on a 75% match of employees’ contributions during the periods. During the years ended December 31, 2024 and 2023, the Board of Directors approved employer matching contributions settled by contributing 383,589 and 135,956, respectively, shares of common stock.Stock OptionsThe fair value of each employee and non-employee stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The Company, prior to the IPO on October 29, 2019, was a private company and lacked company-specific historical and implied volatility information. Therefore, the Company estimated its expected volatility based on the historical volatility of a publicly traded set of peer companies. Due to the lack of historical exercise history, the expected term of the Company’s stock options for employees was determined utilizing the “simplified” method for awards. The expected term of stock options granted to non-employees was equal to the contractual term of the option award. The risk-free interest rate was determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield was zero based on the fact that the Company has never paid cash dividends and does not expect to pay any cash dividends in the foreseeable future.

F-24

A summary of the Company’s stock option activity and related information is as follows during the year ended December 31, 2024:  

        OptionsOutstanding

        Weighted-AverageExercisePrice

        Weighted-AverageRemainingContractualTerm

        AggregateIntrinsicValue (in thousands)

        Balance at January 1, 2024

        4,548,581

        $
        11.75

        7.50

        $
        3,379

        Options granted

        2,282,525

        8.19

        Options exercised

        (127,891
        )

        12.50

        Options cancelled

        (545,683
        )

        13.15

        Balance at December 31, 2024

        6,157,532