Company: CNTB
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001835268-25-000058
Chunk: 26

Company: Connect Biopharma Holdings Ltd
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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, there are restrictions on the Company’s PRC subsidiaries with respect to transferring certain of their net assets to the Company either in the form of dividends, loans, or advances. As of September 30, 2025 and December 31, 2024, restricted net assets including paid-in capital and statutory reserve funds of the Company’s PRC subsidiaries was $27.3 million and $29.6 million, respectively.

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10. Equity Incentive Plans

Option Plan ActivityThe following table summarizes the stock option activity for the nine months ended September 30, 2025:Outstanding OptionsNumber of OptionsWeighted-Average Exercise PriceOutstanding at December 31, 202414,263,242$2.93 Granted1,377,500 $1.03 Exercised(232,788)$1.01 Cancelled(1,875,430)$7.86 Outstanding at September 30, 202513,532,524$2.09 Share-based CompensationThe following table summarizes share-based compensation expense related to share-based payment awards granted pursuant to all of our equity compensation arrangements (in thousands):Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Research and development$258 $872 $841 $2,433 General and administrative658 1,150 1,968 2,894 Total share-based compensation expense$916 $2,022 $2,809 $5,327 As of September 30, 2025, there was $8.5 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 forfeitures. We expect to recognize this compensation cost over a weighted-average period of 2.8 years.On January 1, 2025, we began using the Black-Scholes option pricing model to estimate the fair value of each option grant on the grant date, in order to better align with our peers. Prior to 2025, we estimated the fair value of each option grant on the grant date using the Binomial option pricing model. In connection with our change in method of estimating the fair value per share, we also began estimating the expected term of each option grant based on the simplified method described in SEC Staff Accounting Bulletin No. 107, Share-Based Payment. We believe the simplified method is appropriate, as all of