Company: CRNX
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000950170-25-029050
Chunk: 291

Company: Crinetics Pharmaceuticals, Inc.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1B
Chunk 291
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 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 dividend yield assumption is zero as the Company has never paid dividends and has no present intention to do so in the future. Restricted stock units are valued using the closing sale price of our common stock on the date of grant.Stock-Based Compensation ExpenseStock-based compensation expense for the equity awards issued by the Company to employees and non-employees for the periods presented below was as follows (in thousands): 

        Year ended December 31,

        2024

        2023

        2022

        Included in research and development
         
        $
        40,667

        $
        22,633

        $
        15,078

        Included in general and administrative

        28,719

        18,304

        13,190

        Total stock-based compensation expense
         
        $
        69,386

        $
        40,937

        $
        28,268

F-26

As of December 31, 2024, unrecognized stock-based compensation cost related to option awards, restricted stock units, and ESPP was $142.3 million, $35.0 million and $3.9 million, respectively, which is expected to be recognized over a remaining weighted-average period of approximately 1.8 years, 2.7