Company: PHAT
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0000950170-25-034183
Chunk: 292

Company: Phathom Pharmaceuticals, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1B
Chunk 292
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 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

        $
        10.29

        7.59

        $
        2,133

        Options exercisable as of December 31, 2024

        2,904,886

        $
        11.71

        6.37

        $
        1,144

        Vested and expected to vest as of December 31, 2024

        6,157,532

        $
        10.29

        7.59

        $
        2,133

      The aggregate intrinsic value of stock options is calculated as the difference between the exercise price of the stock options and the fair value of the Company's common stock for those stock options that had exercise prices lower than the fair value of the Company's common stock at December 31, 2024. The total intrinsic value of stock options exercised for the years ended December 31, 2024 and