Company: CRNX
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000950170-25-029050
Chunk: 34

Company: Crinetics Pharmaceuticals, Inc.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 16
Chunk 34
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. The following table summarizes the weighted average assumptions used to estimate the fair value of the ESPP awards for the periods presented below: 

        ESPP
         
        Year ended December 31,

        2024

        2023

        2022

        Expected term
         
        1.3 years

        1.1 years

        1.3 years

        Expected volatility

        72
        %

        66
        %

        87
        %

        Risk free interest rate

        5.0
        %

        5.0
        %

        4.1
        %

        Expected dividend yield

        —
        %

        —
        %

        —
        %
       
       The weighted-average fair value of awards under the ESPP during the years ended December 31, 2024, 2023 and 2022 was $22.09, $11.49 and $9.39 per share, respectively.The key assumptions used in determining the fair value of equity awards, and the Company’s rationale, were as follows: (i) Expected term - the expected term for stock options represents the period that the stock options are expected to be outstanding and has been estimated using the simplified method, due to limited historical exercise behavior. The expected term using the simplified method is an average of the contractual option term and its vesting period; the expected term for awards granted under the ESPP represents the term the awards are expected to be outstanding; (ii) Expected volatility - Beginning in 2023, the Company determined that the volatility of its own market-traded shares best represents the expected volatility based on available historical data and, therefore, the expected volatility assumption for stock-based awards granted during the year ended December 31, 2024 is based on the historical volatility of the Company's common stock. During 2022, the expected volatility assumption was based on volatilities of a peer group of similar companies in the biotechnology industry whose share prices are publicly available. The Company computed the historical volatility data using the daily closing prices for the selected companies’ shares during the period equivalent to the expected term of the Company’s stock-based awards; (iii) Risk-free interest rate - the risk-free interest rate is based on the U.S. Treasury yield in effect at the time of grant for zero coupon U.S. Treasury notes with maturities that approximate the expected terms of awards; and (iv) Expected dividend yield - the expected