Company: AGIO
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001439222-25-000009
Chunk: 751

Company: AGIOS PHARMACEUTICALS, INC.
Filing Date: 2025-02-13
Form: 10-K
Item: Item 1A
Chunk 751
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 of operations is as follows:(In thousands)202420232022Stock options$17,519 $17,163 $23,731 Restricted stock units23,553 19,367 21,670 Performance-based stock units750 7,368 2,919 Employee Stock Purchase Plan1,025 868 976 Total stock-based compensation expense$42,847 $44,766 $49,296 Expenses related to equity-based awards were allocated as follows in the consolidated statements of operations:(In thousands)202420232022Research and development expense$16,910 $17,064 $20,988 Selling, general and administrative expense25,937 27,702 28,308 Total stock-based compensation expense$42,847 $44,766 $49,296 No related tax benefits were recognized for the years ended December 31, 2024, 2023 and 2022.

F-22

The fair value of each stock option granted to employees and non-employees is estimated on the date of grant using the Black-Scholes option-pricing model. The following table summarizes the weighted average assumptions used in calculating the grant date fair value of the awards:202420232022Risk-free interest rate4.15 %4.05 %2.55 %Expected dividend yield— — — Expected term (in years)6.025.996.03Expected volatility53.32 %54.26 %55.30 %Expected termWe use the “simplified method” as prescribed by the Securities and Exchange Commission Staff Accounting Bulletin No. 107, Share Based Payments, to estimate the expected term of stock option grants. Under this approach, the weighted-average expected life is presumed to be the average of the contractual term of ten years and the weighted-average vesting term of the stock options, taking into consideration multiple vesting tranches. We utilize this method due to the plain-vanilla nature of our share-based awards. VolatilityThe expected volatility has been determined using our historical volatilities for a period equal to the expected term of the option grant.Risk-free rateThe risk-free rate is based on the yield curve of U.S. Treasury securities with periods commensurate with the expected term of the options being valued. DividendsWe have never paid, and do not anticipate paying, any cash dividends in the foreseeable future, and, therefore, use an expected dividend yield of