Company: ZLAB
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001628280-25-008409
Chunk: 51

Company: Zai Lab Ltd
Filing Date: 2025-02-27
Form: 10-K
Item: Item 16
Chunk 51
---
 of the applicable settlement date. The remaining shares after the withholding were delivered to the recipient. The amount remitted to the tax authorities for employee tax obligations was reflected as a financing activity on the consolidated statements of cash flows. These shares withheld by the Company as a result of the net settlement were accounted for as treasury stock and considered issued but not outstanding. Stock Option ActivityThe following table presents a summary of option activity and related information in 2024: Number ofoptions Weightedaverage exerciseprice($)Weightedaverageremainingcontractual term (years)Aggregateintrinsic value ($ in thousands)Outstanding at December 31, 2023104,584,0503.14 5.9783,424 Granted20,947,4801.69 Exercised(5,147,140)0.64 Forfeited(19,368,920)3.93 Outstanding at December 31, 2024101,015,4702.82 5.8183,381 Vested and exercisable as of December 31, 202455,805,3602.50 3.7365,797 

F-30

Zai Lab LimitedNotes to the Consolidated Financial StatementsFor the Years Ended December 31, 2024, 2023, and 2022

The aggregate intrinsic value of stock options exercised during 2024, 2023, and 2022 was $9.4 million, $20.3 million, and $14.3 million, respectively. Stock Option Valuation AssumptionsThe following table presents the assumptions used to estimate the fair values of the share options granted: 202420232022Risk-free rate of return3.5%-4.5%3.5%-4.7%1.4%-4.0%Expected term (in years)6.256, 6.25 or 6.56.5Estimated volatility rate70%70%65%Expected dividend rate0%0%0%Options granted are measured based on grant-date fair value using the Black-Scholes option pricing model. The weighted-average grant-date fair value per share for options granted during 2024, 2023, and 2022 were $1.12, $2.21, and $2.74 per share, respectively. Non-Vested Restricted Shares ActivityThe following table summarized the Company’s non-vested restricted share activity in 2024: Numbersof non-vest