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, 2021

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

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


	Year ended
	December 31,
	2021		2020		2019
Research and development	$	9,052	$	4,417	$	3,812
General and administrative		11,577		5,997		7,241
	$	20,629		10,414	$	11,053

Summary of all stock option activity


	Year ended
	December 31,
	2021		2020		2019
Number of options over ordinary shares granted		21,300,998		15,595,374		15,679,383
Weighted average fair value of ordinary shares options	$	0.70	$	0.59	$	0.48
Number of additional options with a nominal exercise price granted		17,765,778		8,282,152		8,020,410
Weighted average fair value of options with a nominal exercise price	$	0.97	$	0.85	$	0.86

The following table summarizes all stock option activity for the year ended December 31, 2021:


		Weighted
		average		Average	Aggregate
		exercise		remaining	intrinsic
		price per		contractual	value
	Options	option		term (years)	(thousands)
Outstanding at January 1, 2021	91,643,184	£	0.55
Changes during the period:
Granted	39,066,776	£	0.38
Exercised	(5,723,646)	£	0.10
Expired	(4,866,762)	£	0.79
Forfeited	(5,204,114)	£	0.26
Outstanding at December 31, 2021	114,915,438	£	0.52	7.0	£	14,030
Exercisable at December 31, 2021	60,058,450	£	0.66	5.5	£	2,478

The following table summarizes information about stock options granted based on the market value at grant date which were outstanding as of December 31, 2021:


		Weighted		Average
		average		remaining	Aggregate
		exercise price		contractual	intrinsic value
	Options	per option		term (years)	(thousands)
Outstanding at January 1, 2021	75,525,482	£	0.67
Changes during the period:
Granted	21,300,998	£	0.70
Exercised	(2,659,632)	£	0.21
Expired	(4,844,367)	£	0.80
Forfeited	(1,935,167)	£	0.71
Outstanding at December 31, 2021	87,387,314	£	0.68	6.6	£	1,311
Exercisable at December 31, 2021	57,005,097	£	0.69	5.4	£	1,068

The following table summarizes information about RSU-style options which were outstanding as of December 31, 2021:


		Average
		remaining	Aggregate
		contractual	intrinsic value
	Options	term (years)	(thousands)
Outstanding at January 1, 2021	16,117,702	8.4		10,616
Changes during the period:
Granted	17,765,778
Exercised	(3,064,014)
Expired	(22,395)
Forfeited	(3,268,947)
Outstanding at December 31, 2021	27,528,124	8.5	£	12,720
Exercisable at December 31, 2021	3,053,353	6.9	£	1,411

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	27,528,124	8.5	£	0.00	3,053,353	£	0.00
	0.01 - 0.25	1,268,588	5.4		0.17	936,227		0.16
	0.26 - 0.50	15,420,385	4.7		0.41	13,549,821		0.42
	0.51 - 0.75	38,895,120	7.0		0.60	25,612,282		0.62
	0.76 - 1.00	26,156,996	7.1		0.84	12,060,873		0.93
	1.01 - 1.50	4,255,224	7.4		1.24	3,478,553		1.26
	1.51 - 2.00	1,391,001	5.7		1.70	1,367,341		1.70
Total		114,915,438	7.0	£	0.52	60,058,450	£	0.66

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,
	2021	2020	2019
Expected term	5 years	5 years	5 years
Expected volatility	98-100%	90-99%	69-73%
Risk free rate	0.00-0.61%	0.00-0.42%	0.22-0.90%
Expected dividend yield	0%	0%	0%

The expected term of the option is based on management judgment. The life of the options depends on the option expiration date, volatility of the underlying shares and vesting features. We do not have sufficient history to determine the expected life based on internal data and therefore the estimate is based on empirical data. Management uses historical data to determine the volatility of the Company’s share price. The risk-free rate is based on the Bank of England’s estimates of the gilt yield curve as of the respective grant dates.