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Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2022

Disclosure of changes in financial liabilities, level 3 fair value - subsidiary preferred shares and convertible notes

The following table summarizes the changes in the Group’s subsidiary preferred shares and convertible note liabilities measured at fair value, which were categorized as Level 3 in the fair value hierarchy:


	Subsidiary Preferred Shares $000s	Subsidiary Convertible Notes $000s
Balance at January 1, 2020	100,989	—
Value at issuance	13,750	25,000



Change in fair value	4,233	—



Balance at December 31, 2020 and January 1, 2021	118,972	25,000

Value at issuance	37,610	2,215
Conversion to subsidiary preferred shares	25,797	(25,797)


Accrued interest - contractual	—	867
Change in fair value	(8,362)	175



Balance at December 31, 2021 and January 1, 2022	174,017	2,461
Value at issuance	—	393



Accrued interest – contractual	—	48

Change in fair value	(130,825)	502
Deconsolidation - Sonde	(15,853)	(3,403)

Balance at December 31, 2022	27,339	—

Disclosure of significant unobservable inputs, level 3 fair value - preferred shares liability

The table below sets out information about the significant unobservable inputs used at December 31, 2022, in the fair value measurement of the Group’s material subsidiary preferred shares liabilities categorized as Level 3 in the fair value hierarchy:

Fair Value at December 31, 2022

Valuation Technique

Unobservable Inputs

Weighted Average

Sensitivity to Decrease in Input

26,820

PWERM based on pro forma backsolve approach that leverages a Monte Carlo simulation

Estimated Time to Exit

2.14

Fair value decrease

Equity Discount Rate

30%

Fair value increase

Debt Discount Rate

15%

Fair value decrease

Volatility

95%

Fair value decrease

Disclosure of sensitivity analysis of fair value measurement to changes in unobservable inputs, liabilities

The following summarizes the sensitivity from the assumptions made by the Company with respect to the significant unobservable inputs which are categorized as Level 3 in the fair value hierarchy and used in the fair value measurement of the Group’s subsidiary preferred shares liabilities (Please refer to Note 15):


Input	Subsidiary Preferred Share Liability
As of December 31, 2022	Sensitivity Range		Financial Liability Increase/(Decrease) $000s









Time to Liquidity	- 6 Months		(1,322)
	+ 6 Months		856


Volatility	(10)	%	(1,133)
	+10%		1,200
Discount Rate	(5)	%	(2,035)
	+5%		1,922

Disclosure of changes in assets, level 3 fair value - investments held at fair value

The following table summarizes the changes in all the Group’s investments held at fair value, which were categorized as Level 3 in the fair value hierarchy:


			$'000s
Balance at January 1, 2020			154,445
Cash purchase of Gelesis preferred shares (please refer to Note 6)			10,000
Cash purchase of Vor preferred shares			1,150


Gain/(Loss) on changes in fair value			41,297


Balance at December 31, 2020 and January 1, 2021			206,892





Cash purchase of Vor preferred shares			500
Reclassification of Vor from level 3 to level 1			(33,365)
Gain/(Loss) on changes in fair value			65,505


Balance at January 1, 2022 before allocation of associate loss to long-term interest			239,533



Deconsolidation of Sonde			11,168
Gelesis – New Investment – Earn out Shares			14,214
Exchange of Gelesis preferred shares to Gelesis common shares			(92,303)
Reclassification of Akili to level 1 investment			(128,764)
Change in fair value			(31,253)





Balance as of December 31, 2022			12,593

Disclosure of significant unobservable inputs - investments at fair value, assets

The table below sets out information about the significant unobservable inputs used at December 31, 2022, in the fair value measurement of the Group’s material preferred share investments held at fair value categorized as Level 3 in the fair value hierarchy:

Fair Value at December 31, 2022

Valuation Technique

Unobservable Inputs

Weighted Average

Sensitivity to Decrease in Input

11,403

Market Backsolve & OPM

Estimated time to exit

2.00

Fair value decrease

Volatility

55%

Fair value decrease

Disclosure of changes in financial liabilities - warrants

The following table summarizes the changes in the Group’s subsidiary warrant liabilities, which were categorized as Level 3 in the fair value hierarchy:


			Subsidiary Warrant Liability $000s
Balance at January 1, 2020			7,997
Warrant Issuance			92

Change in fair value - finance costs (income)			117
Balance at December 31, 2020 and January 1, 2021			8,206


Change in fair value - finance costs (income)			(1,419)
Balance at December 31, 2021 and January 1, 2022			6,787


Change in fair value - finance costs (income)			(6,740)
Balance at December 31, 2022			47

Disclosure of fair value measurement and classification

The fair value of financial instruments by category at December 31, 2022 and 2021:


	2022
	Carrying Amount		Fair Value
	Financial Assets $000s	Financial Liabilities $000s	Level 1 $000s	Level 2 $000s	Level 3 $000s	Total $000s
Financial assets:
Money Markets1,2	95,249	—	95,249	—	—	95,249
Short-term investments1	200,229	—	200,229	—	—	200,229
Note from associate	16,501	—	—	—	16,501	16,501
Investments held at fair value	251,892	—	239,299	—	12,593	251,892
Trade and other receivables3	11,867	—	—	11,867	—	11,867
Total financial assets	575,738	—	534,777	11,867	29,094	575,738
Financial liabilities:
Subsidiary warrant liability	—	47	—	—	47	47
Subsidiary preferred shares	—	27,339	—	—	27,339	27,339
Subsidiary notes payable	—	2,345	—	2,097	248	2,345
Share based liability awards	—	5,932	4,396	—	1,537	5,932
Total financial liabilities	—	35,664	4,396	2,097	29,171	35,664

1 Issued by a diverse group of corporations, largely consisting of financial institutions, virtually all of which are investment grade.

2 Included within Cash and cash equivalents

3 Outstanding receivables are owed primarily by government agencies and large corporations, virtually all of which are investment grade.

As of balance sheet date the long term loan book value (see Note 20) approximated its fair value due to its variable rate.


	2021
	Carrying Amount		Fair Value
	Financial Assets $000s	Financial Liabilities $000s	Level 1 $000s	Level 2 $000s	Level 3 $000s	Total $000s
Financial assets:

Money Markets1	432,649	—	432,649	—	—	432,649
Short-term note from associate	15,120	—	—	—	15,120	15,120
Investments held at fair value2	493,888	—	254,355	—	239,533	493,888

Trade and other receivables3	3,174	—	—	3,174	—	3,174
Total financial assets	944,832	—	687,005	3,174	254,653	944,832
Financial liabilities:
Subsidiary warrant liability	—	6,787	—	—	6,787	6,787
Subsidiary preferred shares	—	174,017	—	—	174,017	174,017
Subsidiary notes payable	—	4,641	—	1,945	2,696	4,641
Share based liability awards	—	7,362	6,081	—	1,281	7,362
Total financial liabilities	—	192,808	6,081	1,945	184,781	192,808

1 Issued by a diverse group of corporations, largely consisting of financial institutions, virtually all of which are investment grade. Included within Cash and cash equivalents

2 Balance prior to share of associate loss allocated to long-term interest (please refer to Note 5).

3 Outstanding receivables are owed primarily by government agencies, virtually all of which are investment grade.