Adaptimmune Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Share-based compensation (Tables)

Share-based compensation (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of options granted to non-executive directors under the Adaptimmune Therapeutics plc 2015 Share Option Scheme



Options granted to non-executive directors on May 11, 2015:		Immediately on grant date
Options granted to a non-executive director on June 23, 2016:		25% on the first anniversary of the grant date and 75% in monthly installments over the following two years
Options granted to non-executive directors on August 11, 2016:		100% on the first anniversary of the grant date
Options granted to non-executive directors on November 28, 2016:		25% on the first anniversary of the grant date and 75% in monthly installments over the following two years
Options granted to non-executive directors on July 3, 2017		100% on the first anniversary of the grant date
Options granted to non-executive directors on June 22, 2018:		100% on the first anniversary of the grant date
Options granted to a non-executive director on July 5, 2018:		25% on the first anniversary of the grant date and 75% in monthly instalments over the following two years
Options granted to non-executive directors on July 2, 2019:		100% on the first anniversary of the grant date
Options granted to non-executive directors on July 1, 2020:		100% on the first anniversary of the grant date

Summary of share-based compensation expense included in the consolidated statements of operations

The following table shows the total share-based compensation expense included in the Consolidated Statements of Operations (thousands):


		Year ended		Year ended		Year ended
		December 31,		December 31,		December 31,
		2020		2019		2018
Research and development	$	4,417	$	3,812	$	8,340
General and administrative		5,997		7,241		7,862
	$	10,414	$	11,053	$	16,202

Summary of all stock option activity


		Year ended		Year ended		Year ended
		December 31,		December 31,		December 31,
		2020		2019		2018
Number of options over ordinary shares granted		15,595,374		15,679,383		20,771,970
Weighted average fair value of ordinary shares options	$	0.59	$	0.48	$	0.87
Number of additional options with a nominal exercise price granted		8,282,152		8,020,410		8,603,676
Weighted average fair value of options with a nominal exercise price	$	0.85	$	0.86	$	1.37

The following table summarizes all stock option activity for the year ended December 31, 2020:


		Weighted		Average
		average		remaining	Aggregate
		exercise price		contractual	intrinsic value
	Options	per option		term (years)	(thousands)
Outstanding at January 1, 2020	88,878,122	£	0.57
Changes during the period:
Granted	23,877,526	£	0.42
Exercised	(11,401,390)	£	0.39
Forfeited	(9,711,074)	£	0.58
Outstanding at December 31, 2020	91,643,184	£	0.55	6.9	£	18,227
Exercisable at December 31, 2020	53,554,476	£	0.65	5.8	£	6,455

The following table summarizes information about stock options granted based on the market value at grant date which were outstanding as of December 31, 2020:


		Weighted		Average
		average		remaining	Aggregate
		exercise price		contractual	intrinsic value
	Options	per option		term (years)	(thousands)
Outstanding at January 1, 2020	76,646,336	£	0.66
Changes during the period:
Granted	15,595,374	£	0.65
Exercised	(9,077,500)	£	0.49
Forfeited	(7,638,728)	£	0.74
Outstanding at December 31, 2020	75,525,482	£	0.67	6.6	£	7,611
Exercisable at December 31, 2020	51,909,485	£	0.67	5.7	£	5,371

The following table summarizes information about RSU-style options which were outstanding as of December 31, 2020:


		Average
		remaining	Aggregate
		contractual	intrinsic value
	Options	term (years)	(thousands)
Outstanding at January 1, 2020	12,231,786
Changes during the period:
Granted	8,282,152
Exercised	(2,323,890)
Forfeited	(2,072,346)
Outstanding at December 31, 2020	16,117,702	8.4	£	10,616
Exercisable at December 31, 2020	1,644,991	7.5	£	1,083

Summary of information about stock options outstanding


Outstanding						Exercisable
			Weighted-
			average	Weighted-			Weighted-
		Total share	remaining	average		Total share	average
Exercise price		options	contractual life	exercise price		options	exercise price
£	0	16,117,702	8.4	£	0.00	1,644,991	£	—
	0.01 - 0.25	3,283,400	4.2		0.14	2,710,901		0.12
	0.26 - 0.50	15,844,377	5.6		0.41	12,545,729		0.42
	0.51 - 0.75	36,418,280	7.4		0.62	21,166,559		0.63
	0.76 - 1.00	13,871,334	5.9		0.93	12,394,690		0.92
	1.01 - 1.50	4,492,290	8.3		1.23	1,574,057		1.17
	1.51 - 2.00	1,615,801	6.3		1.70	1,517,549		1.70
Total		91,643,184	6.9	£	0.55	53,554,476	£	0.65

Summary of the assumptions used to estimate the fair values of the share options granted using the Black-Scholes option-pricing model


	Year ended	Year ended	Year ended
	December 31,	December 31,	December 31,
	2020	2019	2018
Expected term (years)	5 years	5 years	5 years
Expected volatility	90 - 99%	69 - 73%	66 - 69%
Risk free rate	0.00 - 0.42%	0.22 - 0.90%	0.90 - 1.15%
Expected dividend yield	0%	0%	0%