Company: PHAT
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0000950170-25-034183
Chunk: 117

Company: Phathom Pharmaceuticals, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 16
Chunk 117
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 Plan, or the ESPP, which became effective in connection with the IPO. The ESPP permits participants to purchase common stock through payroll deductions of up to 20% of their eligible compensation, which includes a participant’s gross base compensation for services to the Company, including overtime payments and excluding sales commissions, incentive compensation, bonuses, expense reimbursements, fringe benefits and other special payments. A total of 270,000 shares of common stock were initially reserved for issuance under the ESPP. In addition, the number of shares available for issuance under the ESPP will be annually increased on January 1 of each calendar year beginning in 2020 and ending in 2029, by an amount equal to the lesser of: (i) 1% of the shares outstanding on the final day of the immediately preceding calendar year and (ii) such smaller number of shares as is determined by the Board of Directors. As of December 31, 2024, 1,177,618 shares of common stock remain available for issuance, which includes the 375,381 shares sold to employees during the year ended December 31, 2024 as well as an annual increase of 579,701 shares authorized on January 1, 2024. The ESPP is considered a compensatory plan, and the Company recorded related stock-based compensation of $1.8 million and $0.6 million for the years ended December 31, 2024 and 2023, respectively. The weighted-average assumptions used to estimate the fair value of ESPP awards using the Black-Scholes option valuation model were as follows: 

        Years EndedDecember 31,

        2024

        2023

        Assumptions:

        Expected term (in years)

        0.49

        0.49

        Expected volatility

        105.23
        %

        69.73
        %

        Risk free interest rate

        5.19
        %

        5.03
        %

        Dividend yield

        —

        —

      The estimated weighted-average fair value of ESPP awards during 2024 and 2023 was $4.03 and $3.64, respectively. As of December 31, 2024, the total unrecognized compensation expense related to the ESPP was less than $0.1 million, which is expected to be recognized over a weighted-average period of approximately 0.5 months.  401(k) PlanDuring 2020,