Company: IMNN
Filing Date: 2025-05-30
Form Type: PRE 14A
Source: 0001641172-25-013068
Chunk: 67

Company: Imunon, Inc.
Filing Date: 2025-05-30
Form: PRE 14A
Chunk 67
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 shares to provide us greater flexibility to structure future incentives and to better attract, retain and award key employees to execute our current business plans and strategies. For more information on our past grants under the 2018 Plan, see “Potential Dilution and Burn Rate” below.

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The Need to Provide Competitive Compensation. Similar to other companies in our industry, we believe equity compensation is integral in providing a competitive total compensation package necessary to recruit, retain and reward key employees. Equity awards are commonly used by companies our size, and the ability to provide competitive grants is essential to competing in our labor markets. Therefore, we believe it is imperative to provide long-term incentive awards as a component of our compensation program. We will continue to seek an appropriate balance between meeting employee hiring, retention, and compensation goals and avoiding excessive stockholder dilution.

Cash Compensation Expense Increase. If our ability to provide equity compensation is impaired, our cash compensation costs could increase substantially to offset equity compensation typically provided in the marketplace. We believe it is important that we use our cash resources to operate and expand our business, rather than unnecessarily diverting cash to pay compensation.

If stockholders do not approve this 2018 Plan amendment, the current share limit under, and other terms and conditions of the 2018 Plan, will continue in effect (to be adjusted by the Reverse Stock Split, if approved and implemented).

Potential Dilution and Burn Rate

The following paragraphs include additional information to help you assess the potential dilutive impact of the Company’s outstanding equity awards under the 2018 Plan.

The following table shows the total number of shares of our common stock that were subject to outstanding restricted stock granted under the 2018 Plan, that were subject to outstanding stock options granted under the 2018 Plan, and that were then available for new award grants under the 2018 Plan as of December 31, 2024 and as of May 28, 2025.

|                                                |     |     |                   As 
 of December 31, 2024 |     |     |              As 
 of May 28, 2025 |
|:-----------------------------------------------|:----|:----|---------------------:|:----|:----|----------------:|
| Shares subject to outstanding stock            
 options                                        |     |     |            1,515,373 |     |     |       1,751,551 |
| Shares subject to outstanding restricted stock 
 awards                                         |     |     |               39,700 |     |     |