Company: CNTB
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001835268-25-000058
Chunk: 52

Company: Connect Biopharma Holdings Ltd
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 52
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 payment awards granted pursuant to all of our equity compensation arrangements (in thousands):Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Research and development$258 $872 $841 $2,433 General and administrative658 1,150 1,968 2,894 Total share-based compensation expense$916 $2,022 $2,809 $5,327 As of September 30, 2025, there was $8.5 million of total unrecognized compensation cost related to non-vested, share-based payment awards granted under all of our equity compensation plans. Total unrecognized compensation cost will be adjusted for forfeitures. We expect to recognize this compensation cost over a weighted-average period of 2.8 years.On January 1, 2025, we began using the Black-Scholes option pricing model to estimate the fair value of each option grant on the grant date, in order to better align with our peers. Prior to 2025, we estimated the fair value of each option grant on the grant date using the Binomial option pricing model. In connection with our change in method of estimating the fair value per share, we also began estimating the expected term of each option grant based on the simplified method described in SEC Staff Accounting Bulletin No. 107, Share-Based Payment. We believe the simplified method is appropriate, as all of our stock option grants would be considered “plain-vanilla” and we have a limited history of option exercise activity.The following are the weighted-average assumptions for stock options:For the Nine Months Ended September 30,20252024Risk-free interest rate4.0%4.3%Dividend yield0.0%0.0%Volatility105.9%103.8%Expected life (years)610Early exercise multiple (years)— 2.2 - 2.8The weighted-average fair value of options granted was $0.85 and $1.17 for the nine months ended September 30, 2025 and 2024, respectively.We estimate the fair value of each purchase right granted under our Employee Stock Purchase Plan at the beginning of each new offering period using the Black-Scholes option pricing model. There was no new offering period during the three months ended September 30, 2025 or 2024.

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11. Income Taxes

For the three and nine months ended September 30, 2025, we recorded income tax expense of $