As an incentive to the senior management, other employees, members of the Board and select consultants, Ascendis Pharma A/S has established warrant programs, a Restricted Stock Unit (“RSU”) program adopted in December 2021, and a Performance Stock Unit (“PSU”) program adopted in February 2023, which are all classified as equity-settled share-based payment transactions.

Share-based compensation costs are determined using the grant date fair value and are recognized over the vesting period as research and development expenses, selling, general and administrative expenses, or cost of sales. For the three months ended March 31, 2025 and 2024, share-based compensation costs recognized in the unaudited condensed consolidated interim statement of profit or loss were €25.6 million and €17.3 million, respectively.

RSUs are granted by the Board to members of senior management, other employees and members of the Board (the “RSU-holders”), as stipulated in the program. In addition, RSUs may be granted to select consultants.

One RSU represents a right for the RSU-holder to receive one ADS representing ordinary shares of Ascendis Pharma A/S upon vesting, if the vesting conditions are met. RSUs granted vest over three years with 1/3 of the RSUs vesting on each anniversary date from the date of grant, and require RSU-holders to be employed, appointed as member of the Board, or retained as a consultant (the “service conditions”).

PSUs are granted by the Board to certain members of senior management (the “PSU-holders”), as stipulated in the program. In addition, PSUs may be granted to other employees, select consultants and members of the Board.

One PSU represents a right for the PSU-holder to receive one ADS representing ordinary shares of Ascendis Pharma A/S upon vesting. PSUs vest in a manner similar to the service conditions of the RSUs. In addition to service conditions, vesting is also contingent upon achievement of long-term strategic goals as evaluated by the Board no later than two weeks prior to each vesting date. Exceeding performance targets will not result in vesting of more PSUs than 100%, nor will it result in additional grants.

The following table specifies the number of outstanding RSUs and PSUs:


	Restricted Stock Units			Performance Stock Units			Total
Outstanding	(Number)
January 1, 2025		993,807			156,667			1,150,474
Granted during the period		634,589			73,583			708,172
Settled during the period		(60,056	)		(15,716	)		(75,772	)
Transferred during the period		(321,392	)		(46,588	)		(367,980	)
Forfeited during the period		(25,760	)		(2,688	)		(28,448	)
March 31, 2025		1,221,188			165,258			1,386,446
Specified by vesting year
2026		583,076			86,659			669,735
2027		427,429			54,066			481,495
2028		210,683			24,533			235,216
March 31, 2025		1,221,188			165,258			1,386,446

Warrants are granted by the Board in accordance with authorizations given to it by the shareholders of Ascendis Pharma A/S to all employees, members of the Board and select consultants. Each warrant carries the right to subscribe for one ordinary share of a nominal value of DKK 1. The exercise price is fixed at the fair market value of the Company’s ordinary shares at the time of grant as determined by the Board.

The following table specifies the number and weighted average exercise prices of, and movements in warrants:


	Warrants			Weighted Average Exercise Price
	(Number)			(EUR)
Outstanding
January 1, 2025		6,204,122			93.25
Granted during the period		148,663			126.98
Exercised during the period		(281,078	)		46.66
Forfeited during the period		(54,550	)		95.24
March 31, 2025		6,017,157			96.26
Vested at March 31, 2025		5,057,771			92.31

The exercise prices of outstanding warrants under the Company’s warrant programs range from €11.98 to €145.50 depending on the grant dates.