Company: FENC
Filing Date: 2025-04-25
Form Type: DEF 14A
Source: 0001558370-25-005563
Chunk: 49

Company: FENNEC PHARMACEUTICALS INC.
Filing Date: 2025-04-25
Form: DEF 14A
Chunk 49
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 entitled to a deduction in the same amount as the ordinary income recognized by the optionee. Any gain or loss recognized on such a premature disposition of the shares in excess of the amount treated as ordinary income will be characterized as long-term or short-term capital gain or loss, depending on the optionee’s holding period with respect to such shares. Options that do not qualify as incentive stock options under the Prior Plan are referred to as nonstatutory options. Generally, an optionee will not recognize any taxable income at the time he or she is granted a nonstatutory option. Upon its exercise, however, the optionee will generally recognize taxable ordinary income measured as the excess of the then fair market value of the shares acquired over the exercise price of the option. Any taxable income recognized in connection with an option exercise by an optionee who is also one of our employees will be subject to tax withholding by us. Fennec will be entitled to a tax deduction in the same amount as the ordinary income recognized by the optionee with respect to shares acquired upon exercise of a nonstatutory option. Upon resale of such shares by the optionee, any difference between the sales price received and the fair market value for the shares on the date of exercise of the option will be treated as long-term or short-term capital gain or loss, depending on the optionee’s holding period with respect to such shares. Stock Option Burn-Rate The following table sets out information with respect to the burn-rate calculations for the Equity Incentive Plans as at December 31, 2024, 2023 and 2022.

| ​           | ​ | ​                                                                                                                       | ​ |          ​ | ​ |
| Description |   | ​                                                                                                                       |   | Percentage |   |
| Burn Rate   |   | The total number of options issued in 2024 divided by the weighted average number of outstanding Common Shares for 2024 |   |       4.69 | % |
| ​           |   | The total number of options issued in 2023 divided by the weighted average number of outstanding Common Shares for 2023 |   |       3.89 | % |
| ​           |   | The total number of options issued in 2022 divided by the weighted average number of outstanding Common Shares for 2022 |   |       5.35 | % |

Directors’ and Officers’ Liability Insurance Fennec has liability insurance for its directors and officers. We indemnify our directors and officers to the fullest extent permitted by