Company: ARVN
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0001655759-25-000016
Chunk: 40

Company: ARVINAS, INC.
Filing Date: 2025-02-11
Form: 10-K
Item: Item 16
Chunk 40
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.5 million, respectively, related to the issuance of incentive awards, including $0.7 million, $0.8 million and $0.7 million, respectively, related to the 2018 ESPP.As of December 31, 2024, there was $52.8 million of compensation expense that is expected to be recognized over a weighted-average period of approximately 1.2 years.

F - 21

Stock OptionsThe fair value of the stock options granted during each of the years ended December 31, 2024, 2023 and 2022 was determined using the Black-Scholes option pricing model at the grant date with the following range of assumptions:Year ended December 31,202420232022Expected volatility72.0% - 75.6%(1)71.3% - 75.0%73.2% - 76.0%Expected term (years)5.4 - 5.5(2)5.5 - 7.05.5 - 7.0Risk free interest rate3.5% - 4.6%(3)3.4% - 4.8%1.5% - 4.2%Expected dividend yield0 %0 %0 %Exercise price$24.19 - $47.00$16.21 - $36.27$36.79 - $78.91(1)    Expected volatility is calculated by utilizing the Company's historical volatility of its stock price over a period equal to the expected term.(2)    Expected term is calculated based on the Company's historical experience.(3)     Risk free interest rate is based on an interpolation of U.S. Treasury rates to reflect the expected term at the date of grant.During the years ended December 31, 2023 and 2022, the Company calculated volatility of its common stock by utilizing a weighted-average of a collection of peer company volatilities and its own common stock volatility as the Company’s common stock had not been trading for a sufficient period of time. The expected term was calculated utilizing the simplified method.A summary of the stock option activity under the 2018 Plan as of December 31, 2024 is presented below. Included in the table are stock options granted to employees, directors and consultants under the 2018 Plan, as well as options to purchase 255,611 shares of common stock granted to certain employees pursuant to the Nasdaq indu