Company: CNTB
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001835268-25-000014
Chunk: 276

Company: Connect Biopharma Holdings Ltd
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 276
---
31,20242023Research and development$2,951 $2,492 General and administrative3,777 2,904 Total share-based compensation expense$6,728 $5,396 As of December 31, 2024, there was $10.3 million of total unrecognized compensation cost related to non-vested, share-based payment awards granted under all of our equity compensation plans. Total unrecognized compensation cost will be adjusted for future forfeitures. We expect to recognize this compensation cost over a weighted-average period of 3.3 years.The fair value of each option grant is estimated on the grant date using the binomial option pricing model with the following weighted-average assumptions:Options:December 31,20242023Risk-free interest rate4.4 %4.2 %Dividend yield0.0 %0.0 %Volatility104.5 %59.9 %Option life (years)1010Early exercise multiple (years)2.2 - 2.82.2 - 2.8The fair value of each employee share purchase right granted is estimated on the grant date using the Black-Scholes option pricing model with the following weighted-average assumptions:

128

ESPP:December 31,20242023Risk-free interest rate4.2% - 4.4%4.1% - 5.1%Dividend yield0.0 %0.0 %Volatility111.9% - 128.5%47.0% - 52.3%Expected life (years)0.5 - 20.5 - 2The weighted-average fair value of options granted was $1.08 and $0.70 for the years ended December 31, 2024 and 2023, respectively.The weighted-average fair value of purchase rights granted under the ESPP was $0.38 and $0.30 for the years ended December 31, 2024 and 2023, respectively.Risk-Free Interest Rate: The risk-free interest rate assumption is based on the U.S. Treasury yield for obligations with contractual terms similar to the expected term of the stock option or purchase right being valued.Dividend Yield: The Company has never paid any dividends and currently has no plans to do so.Volatility: The expected volatility assumption was determined by examining the average volatility of comparable companies. The volatility of each comparable company was based on the historical daily share prices for a period commensurate to