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Share-Based Compensation | 3 Months Ended
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Mar. 31, 2025
Share-Based Payment Arrangement [Abstract] |
Share-Based Compensation | Note 9. Share-Based Compensation The Company has four Share-based payment plans and one restricted share award in place as at March 31, 2025: • The Company’s Long-Term Incentive Plan (the “Plan”); • The Company’s Supplementary Long-Term Incentive Plan (the “Supplementary Plan”); • The Company’s Rollover Option Plan (the “Rollover Plan”); • The Company’s Inducement Plan (the “Inducement Plan,” together with the Plan, the Supplementary Plan and the Rollover Plan, the “Plans”); and • Chief Executive Officer Restricted Share Award. Long Term Incentive Plans The Plans are equity-settled, and the Company may grant various forms of equity awards, including the granting of options to purchase Ordinary Shares (“Company Options”) and restricted stock units (“RSUs”), pursuant to the Plans. In total, as of March 31, 2025 a maximum of 27,435,355 Ordinary Shares may be reserved for issuance pursuant to the Plans. The number of Ordinary Shares reserved for grant under the Plan will increase annually on January 1 of each calendar year by 5% of the then issued and outstanding Ordinary Shares or such lower number as may be determined by the Company's Board of Directors. The contractual term is 10 years from grant date for options granted under the Plans. In general, each Company Option has a four-year vesting period with 25% vesting after one year and the remaining 75% vesting in equal monthly installments over the next following three years. In general, each RSU, other than Earnout RSUs, has a three-year vesting period with one-third vesting on each one-year anniversary of the vesting start date. The changes for the three months ended March 31, 2025 in the number of Company Options outstanding related to Ordinary Shares and their related weighted average exercise prices are as follows:
|  | Number of options |  |  | Weighted average exercise price |  |  | Weighted average remaining contractual term (in years) |  |  | Aggregate intrinsic value (in thousands of USD) |
Outstanding as at December 31, 2024 |  |  | 19,029,056 |  |  | $ | 10.04 |  |  |  |  |  |  |
Granted |  |  | 3,731,537 |  |  | $ | 25.71 |  |  |  |  |  |  |
Exercised |  |  | (909,140 | ) |  | $ | 3.29 |  |  |  |  |  |  |
Outstanding as at March 31, 2025 |  |  | 21,851,453 |  |  | $ | 13.00 |  |  |  | 8.3 |  |  |  | 183,778 |
Options exercisable as of March 31, 2025 |  |  | 8,863,297 |  |  | $ | 8.49 |  |  |  | 7.6 |  |  |  | 106,343 |
The weighted average grant date fair value of Company Options, estimated as of the grant date using the Black-Scholes option pricing model, was $13.24, and $5.90 per option for options granted during the three months ended March 31, 2025 and 2024, respectively. The total intrinsic value (the amount by which the fair market value exceeded the exercise price) of Company Options exercised during the three months ended March 31, 2025 and 2024 was $17.3 million and $8.0 million, respectively. Weighted average assumptions used to apply this pricing model were as follows:
|  |  |  | Three months ended March 31, |
|  |  |  | 2025 |  |  | 2024 |
Expected life (years) |  |  |  |  | 6.1 |  |  |  | 6.1 |
Risk-free rate |  |  |  |  | 4.4 | % |  |  | 3.9 | %
Volatility |  |  |  |  | 47.3 | % |  |  | 41.2 | %
Dividend yield |  |  |  |  | 0.0 | % |  |  | 0.0 | %
Expected Term The Company’s expected term represents the period that the Company’s stock-based awards are expected to be outstanding and is determined using the simplified method (based on the mid-point between the vesting date and the end of the contractual term). The Company utilizes this method due to lack of historical exercise data and the plain-vanilla nature of the Company’s stock-based awards. Expected Volatility Since the Company was privately held through November 2022, it alone does not have sufficient relevant company-specific historical data to support its expected volatility alone. In prior periods, due to the insufficiency of historical volatility data on the Company’s own securities, the expected volatility input was determined using comparable companies alone. Beginning on January 1, 2024 expected volatility input was determined using a weighted average calculation considering the volatility of the Company’s own securities and the volatilities of a representative group of publicly traded biopharmaceutical companies over a period equal to the expected term of the stock option grants. Initially, the volatility of the Company’s Ordinary Shares is assigned a weighting of 10%. This weighting will be increased by 5% per calendar quarter (i.e. 30% in Q1 2025), until the expected volatility input is based entirely on the historical volatility of the Company’s Ordinary Shares. For purposes of identifying comparable companies, the Company selected companies with comparable characteristics to it, including enterprise value, risk profiles, position within the industry, and with historical share price information sufficient to meet the expected life of the stock-based awards. The historical volatility data was computed using the daily closing prices for the selected companies’ shares during the equivalent period of the calculated expected term of the stock-based awards. Risk-Free Interest Rate The risk-free interest rate is based upon the U.S. Treasury yield curve in effect at the time of grant, with a term that approximates the expected life of the Company Option. Expected Dividend The expected dividend rate is zero as the Company currently has no history or expectation of declaring dividends on its Ordinary Shares. Restricted Stock Units As at December 31, 2024 the Company had allocated 143,002 Earnout Shares to be granted to Participating Optionholders if and when a certain clinical development milestone is achieved during the earnout period. In March 2025 it was determined that the earnout milestone triggering event set forth in the Business Combination Agreement had occurred and, as a result Earnout Shares were delivered in the form of awards of RSUs (the “Earnout RSUs”) granted pursuant to the Plan to such Participating Optionholders who were, at the time of achievement of such milestone, still providing services to the Company. In total, 143,001 Earnout RSUs were granted, of which 142,795 vested immediately. Though the Earnout RSUs were only legally granted upon the achievement of the milestone triggering event, in accordance with ASC 718, the Company determined the grant date of such Earnout RSUs to be November 22, 2022 for accounting purposes and began recognizing the associated share-based payment expenses once the milestone was deemed probable to occur. The changes for the three months ended March 31, 2025 in the number of RSUs outstanding are as follows:
|  | Number of RSUs |  |  | Weighted average Fair Value Per Share |
Outstanding as at December 31, 2024 |  |  | 143,002 |  |  | $ | 9.84 |
Granted |  |  | 663,584 |  |  | $ | 25.87 |
Vested |  |  | (142,795 | ) |  | $ | 9.84 |
Forfeited/Cancelled |  |  | (1 | ) |  | $ | 9.84 |
Outstanding as at March 31, 2025 |  |  | 663,790 |  |  | $ | 25.87 |
The following summarizes the share-based payment expense recognized by type of award and line-item:
|  |  |  | Three months ended March 31, |
(in thousands of USD) |  |  |  | 2025 |  |  | 2024 |
Share-based compensation expense by type of award |  |  |  |  |  |  |  |
Share options |  |  |  |  | 12,572 |  |  |  | 7,918 |
Restricted stock units |  |  |  |  | 2,641 |  |  |  | — |
Total share-based compensation expense |  |  |  |  | 15,213 |  |  |  | 7,918 |
Share-based compensation expense by line-item |  |  |  |  |  |  |  |
Research and development expenses |  |  |  |  | 5,223 |  |  |  | 3,479 |
Selling, general and administrative expenses |  |  |  |  | 9,990 |  |  |  | 4,439 |
Total share-based compensation expense |  |  |  |  | 15,213 |  |  |  | 7,918 |
As of March 31, 2025, there was $63.4 million and $14.4 million of unrecognized compensation cost related to Company Options and RSUs that have not yet vested, respectively. These costs are expected to be recognized over a weighted average period of 3.4 years and 2.8 years until fully vested for the Company Options and RSUs, respectively.

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