LeonaBio, Inc. Stock Compensation Disclosure
9. Stock-based Compensation
Stock‑based compensation expense recognized was as follows (in thousands):
|
|
Year Ended December 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Research and development |
|
$ |
4,043 |
|
|
$ |
4,003 |
|
General and administrative |
|
|
7,006 |
|
|
|
6,620 |
|
Total stock-based compensation expense |
|
$ |
11,049 |
|
|
$ |
10,623 |
|
Valuation Assumptions
The fair value of stock options was determined using the Black-Scholes option-pricing model and the assumptions below. Each of these inputs is subjective and generally required significant judgment.
The fair value of each stock option was estimated using the Black‑Scholes option‑pricing model with the following weighted-average assumptions:
|
|
Year Ended December 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Risk-free interest rate |
|
|
4.13 |
% |
|
|
3.54 |
% |
Expected volatility |
|
|
97.21 |
% |
|
|
99.18 |
% |
Expected term (in years) |
|
|
5.88 |
|
|
|
5.84 |
|
Expected dividend yield |
|
|
— |
|
|
|
— |
|
The grant date fair value of restricted stock units is based upon the fair market value of the Company’s common stock based on its closing price as reported on the date of grant on the Nasdaq Global Select Market.
The fair value of options granted during the years ended December 31, 2024 and 2023 was $10.6 million and $9.8 million, respectively. The fair value of restricted stock units granted during the year ended December 31, 2024 and 2023 was $0.4 million and $0.5 million, respectively.
Stock Option Activity
Changes in shares available for grant under the 2020 Plan and the 2024 Inducement Plan during the year ended December 31, 2024 were as follows:
|
|
Shares |
|
|
Shares available for grant at December 31, 2023 |
|
|
3,158,094 |
|
2020 Plan reserve increase on January 1, 2024 |
|
|
1,908,630 |
|
Shares reserved upon adoption of the |
|
|
750,000 |
|
Options and restricted stock units granted |
|
|
(5,986,613 |
) |
Options and restricted stock units forfeited, |
|
|
2,186,270 |
|
Shares available for grant at December 31, 2024 |
|
|
2,016,381 |
|
A summary of stock option activity under the 2020 Plan and the 2024 Inducement Plan for the year ended December 31, 2024 was as follows:
|
|
Shares |
|
|
Weighted- |
|
|
Weighted- |
|
|
Aggregate |
|
||||
Balance at December 31, 2023 |
|
|
6,820,869 |
|
|
$ |
7.97 |
|
|
8.24 |
|
|
$ |
387 |
|
|
Granted |
|
|
5,052,871 |
|
|
|
2.64 |
|
|
|
|
|
|
|
||
Exercised |
|
|
(75,660 |
) |
|
|
0.16 |
|
|
|
|
|
|
|
||
Forfeited/expired |
|
|
(2,185,770 |
) |
|
|
4.21 |
|
|
|
|
|
|
|
||
Balance at December 31, 2024 |
|
|
9,612,310 |
|
|
$ |
6.08 |
|
|
|
8.08 |
|
|
$ |
130 |
|
Expected to vest |
|
|
4,055,037 |
|
|
$ |
3.79 |
|
|
|
8.82 |
|
|
$ |
87 |
|
Options exercisable |
|
|
5,557,273 |
|
|
$ |
7.75 |
|
|
|
7.53 |
|
|
$ |
43 |
|
The total fair value of options granted that vested during the years ended December 31, 2024 and 2023 was $11.0 million and $9.8 million, respectively.
The aggregate intrinsic value in the table above is calculated as the difference between the exercise price of the underlying options and the estimated fair value of the Company’s common stock underlying all options that were in-the-money at December 31, 2024. The aggregate intrinsic value of options exercised was $0.2 million and $0.2 million during the year ended December 31, 2024 and 2023, respectively, determined as of the date of option exercise. As of December 31, 2024, there was $9.8 million of total unrecognized compensation cost related to non-vested stock options. The Company expects to recognize this cost over a remaining weighted-average period of 1.99 years. The Company utilizes newly issued shares to satisfy option exercises.
Stock options outstanding and exercisable under the 2020 Plan and the 2024 Inducement Plan consisted of the following at December 31, 2024:
|
|
|
|
|||||
Exercise Price ($) |
|
Options |
|
|
Options |
|
||
0.43 to 0.71 |
|
|
964,067 |
|
|
|
310,581 |
|
1.04 to 4.22 |
|
|
5,771,807 |
|
|
|
2,834,921 |
|
8.93 to 19.94 |
|
|
2,528,788 |
|
|
|
2,136,223 |
|
20.55 to 29.41 |
|
|
347,648 |
|
|
|
275,548 |
|
Total |
|
|
9,612,310 |
|
|
|
5,557,273 |
|
Restricted Stock Unit Activity
A summary of restricted stock unit, or RSU, activity for the year ended December 31, 2024 is as follows:
|
|
Share |
|
|
Weighted- |
|
||
Non-vested at December 31, 2023 |
|
|
310,087 |
|
|
$ |
11.44 |
|
Granted |
|
|
933,742 |
|
|
|
0.46 |
|
Cancelled |
|
|
(500 |
) |
|
|
2.51 |
|
Vested |
|
|
(620,668 |
) |
|
|
5.94 |
|
Non-vested at December 31, 2024 |
|
|
622,661 |
|
|
$ |
0.46 |
|
As of December 31, 2024, there was $0.2 million of total unrecognized compensation cost related to non-vested RSUs. The Company expects to recognize this cost over a remaining weighted-average period of 0.77 years.
Employee Stock Purchase Plan
Under the ESPP, eligible employees can authorize payroll deductions for amounts up to the lesser of 15% of their qualifying wages or the statutory limit under the U.S. Internal Revenue Code. The ESPP provides for offering periods of six months in duration with one purchase period per offering period beginning May 18 and November 18 of each year. Participants in an offering period will be granted the right to purchase shares of our common stock at a price per share that is 85% of the lesser of the fair market value of the shares at (1) the first day of the offering period or (2) the end of each purchase period within the offering period. A maximum of 10,000 shares of common stock may be purchased by each participant at the purchase date during the offering period. The fair market value of the ESPP options granted is determined using the Black-Scholes model and is amortized on a straight-line basis. Stock-based
compensation expense recognized during the years ended December 31, 2024 and 2023 associated with the ESPP was $0.1 million and $0.1 million, respectively. During the year ended December 31, 2024, the Company issued 172,014 shares of common stock to employees under the ESPP.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Feb 27, 2025 | Showing above |
| 2021 | Mar 28, 2022 | |
About Stock Compensation Disclosures
Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.
Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.