Company: ASAN
Filing Date: 2025-09-03
Form Type: 10-Q
Source: 0001477720-25-000200
Chunk: 337

Company: Asana, Inc.
Filing Date: 2025-09-03
Form: 10-Q
Item: Part I, Item 8
Chunk 337
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 UnitsIn July 2025, pursuant to the 2020 Plan, the Company’s board of directors approved an award of 1,179,776 performance-based restricted stock units to the Company’s new CEO, which vest upon satisfaction of certain market and performance conditions. Of the total PSU awards, 80% are associated with a market condition (“Market-Based Awards”) and 20% are associated with a performance condition (“Performance-Based Awards”). The number of shares eligible to vest will range between zero and 200%, depending on the attainment level of the market and performance conditions over a three-year performance period.Market-Based AwardsThe Market-Based Awards vest based on both (i) continuous service through each vesting date and (ii) the Company’s relative total shareholder return performance as compared to a defined group of peer companies during the performance periods. The Company estimates the grant-date fair value of the Market-Based Awards using a Monte Carlo Simulation model, which models multiple stock price paths in order to estimate the grant date fair value of the awards. The valuation model incorporates various assumptions including expected stock price volatility, expected term, expected dividend yield, and risk-free interest rates. The Company estimates the volatility of its common stock and the common stock of its peer companies on the date of grant based on the respective historical equity volatility. The expected term is based on the award agreement, the expected dividend yield input is zero as the Company has never declared a dividend and does not expect to pay any cash dividends in the foreseeable future, and the risk-free rate is based on the U.S. Treasury yield curve in effect at the time of the grant. The Company recognizes stock-based compensation expense for the Market-Based Awards using the accelerated attribution method over the three-year requisite service period. Failure to satisfy the market condition results in the forfeiture of units but does not result in the reversal of previously recognized compensation cost.The following assumptions were used to calculate the fair value of the Market-Based Awards granted during the three and six months ended July 31, 2025:July 31, 2025Risk-free interest rate3.7 %Expected term3.0 yearsDividend yield— %Expected volatility72.6 %During the three and six months ended July 31, 2025, the Company recognized $0.3 million of stock-based compensation expense related to the Market-Based Awards. Prior to the  three and six months ended July 31, 2025, no Market-Based Awards had been granted, and therefore no such stock-based compensation expense had been