8. Stock-based Compensation

 

The Company sponsored the Pulmatrix, Inc. Amended and Restated 2013 Employee, Director and Consultant Equity Incentive Plan (the “Incentive Plan”), which expired on June 10, 2025. No new awards may be made under the Incentive Plan after its expiration date. Awards issued under the Incentive Plan prior to its expiration remain outstanding in accordance with their terms.

 

No stock options were granted during the years ended December 31, 2025, and 2024. The following table summarizes stock option activity for the year ended December 31, 2025:

 

  

Number of

Options

  

Weighted-

Average

Exercise

Price

  

Weighted-

Average

Remaining

Contractual Term

(Years)

  

Aggregate

Intrinsic

Value

 
Outstanding — January 1, 2025   34,046   $30.55         - 
Forfeited or expired   (188)   2,350.64           
Outstanding — December 31, 2025   33,858    17.67    5.72   $- 
Exercisable — December 31, 2025   30,961    18.95    5.60   $- 

 

The Company records stock-based compensation expense related to stock options based on their grant-date fair value. As of December 31, 2025, there was an immaterial amount of unrecognized stock-based compensation expense related to unvested stock options granted under the Company’s Incentive Plan.

 

The following table presents total stock-based compensation expense for the years ended December 31, 2025, and 2024:

 

   2025   2024 
   Year Ended December 31, 
   2025   2024 
Research and development  $-   $149 
General and administrative   25    362 
Total stock-based compensation expense  $25   $511 

 

 

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2021Mar 29, 2022
2020Mar 23, 2021
2019Mar 26, 2020
2017Mar 13, 2018
2016Mar 10, 2017
2015Mar 10, 2016

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.