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Stock based compensation
 6 Months Ended 11 Months Ended
Jun. 30, 2020
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]    
Stock based compensation Stock Based Compensation
The following table summarizes stock option activity as of June 30, 2020, and changes during the six months ended June 30, 2020:
Six months ended June 30, 2020Weighted average exercise price
Outstanding at January 1, 20204,644,835$1.80 
Granted 3,847,217$3.33 
Lapsed / surrendered (3,513,708)$2.23 
Number of outstanding options4,978,344 $1.97 
Exercisable at June 30, 2020632,069 $2.12 

The following table summarizes restricted stock units ("RSUs") granted in the form of a nominal-cost options as of June 30, 2020 and changes during the six months ended June 30, 2020:
Six months ended June 30, 2020Weighted average exercise price
Outstanding at January 1138,461 $0.05 
Exercised during the period(53,846)$0.05 
Number of outstanding RSUs84,615 $0.05 

The total intrinsic value of all outstanding options and exercisable options at June 30, 2020 was $2.6 million and $0.7 million, respectively.

The following table summarizes consultant warrant activity as of June 30, 2020, and changes during the six months ended June 30, 2020:

Six months ended June 30, 2020Weighted average exercise price
Outstanding at January 13,358,732 $1.45 
Lapsed / surrendered(2,798,944)$1.45 
Number of outstanding warrants559,788 $1.45 

The total intrinsic value of all outstanding warrants which are all exercisable at June 30, 2020 was $0.9 million.

The following table summarizes stock-based compensation expense reflected in the consolidated statements of operations:

Three months endedSix months ended
June 30June 30
2020201920202019
(in thousands)
Research and development$380 $119 $464 $178 
General and administrative150 145 363 426 
$530 $264 $827 $604 
 Stock Based Compensation
Our 2016 Long Term Incentive Plan, which we refer to as the Incentive Plan, was adopted on January 21, 2016. Under the Incentive Plan, our Board may grant conditional awards, options, cash conditional awards and cash options to any of our employees, including executive directors, and the employees of our subsidiaries. The Incentive Plan is administered by our Board, which has full authority, consistent with the Incentive Plan, to administer the Incentive Plan, including the authority to interpret and construe any provision of the Incentive Plan and to adopt regulations for administering the Incentive Plan. Decisions of the Board are final and binding on all parties. References to our board in this summary shall include any duly authorized committee of our Board.
Shares available for grant under the Stock Incentive Plan, including those previously issued and outstanding were approximately 10.1 million, 4.8 million, and 2.2 million at December 31, 2019, and January 31, 2019, and 2018, respectively. Any shares subject to an award under the Stock Incentive Plan that are forfeited, canceled, expire or that are settled for cash will be available for future grant under the Stock Incentive Plan.
The Company recorded stock-based compensation expense related to stock options and restricted stock units in the following expense categories of its consolidated statements of operations and comprehensive (loss)/income:


Eleven Months ended December 31, 2019
Year ended January 31, 2019
Year ended January 31, 2018
Research and development
$
381 
$
1,448 
$
425 
General and administrative
$
464 4,847 1,666 
Total share based expenses
$
845 
$
6,295 
$
2,091 
At December 31, 2019, the outstanding share options, which include the share options granted to Directors, are shown below: 
Date of grantExercise
price 		Number of
shares		Date from which
exercisable		Expiry date
Approved EMI scheme
April 7, 20115.30 1,174 April 8, 2014April 7, 2021
May 10, 20124.85 30,009 May 10, 2014May 10, 2022
December 24, 20126.85 4,300 December 24, 2015December 24, 2022
January 31, 20131.59 14,594 July 31, 2013January 31, 2023
50,077 
Unapproved scheme
December 18, 20131.64 15,272 June 18, 2014December 18, 2023
July 15, 20146.90 20,000 May 30, 2015May 30, 2023
June 23, 20160.05 22,115 July 21, 2016June 23, 2026
October 19, 20181.92 788,377 October 19, 2019October 19, 2028
October 19, 20181.92 762,994 October 19, 2021October 19, 2028
March 29, 20191.79 916,000 March 29, 2020March 29, 2029
March 29, 20191.79 1,300,000 March 29, 2022March 29, 2029
December 23, 20191.36600,000 December 23, 2020December 23, 2029
December 23, 20191.36170,000 December 23, 2020December 23, 2029
4,594,758 
4,644,835 
The Group has no legal or constructive obligation to repurchase or settle the options in cash.
The following table summarizes stock option activity as of December 31, 2019, and changes during the period ended December 31, 2019:     
`Number of share optionsWeighted average exercise priceWeighted average remaining contractual termAggregate intrinsic value
Outstanding at February 1, 20191,833,679 $2.45 
Granted during the year3,049,200 1.70 
Lapsed / surrendered during the year(238,044)5.25 
Number of options outstanding at December 31, 2019 4,644,835 $1.80 9.1 years$— 
Vested or expected to vest at December 31, 2019201,014 $2.75 9.1 years$— 
Exercisable at December 31, 2019201,014 $2.75 9.1 years$— 

The weighted-average grant-date fair value of stock options granted during the eleven months period ended December 31, 2019, and for the years ended January 31, 2019 and 2018 was $0.65, $2.00 and $4.40, respectively, per share. The aggregate intrinsic value of our stock options (the amount by which the market price of the stock on the date of exercise exceeded the exercise price of the option) exercised during the eleven months period ended December 31, 2019, and for the years ended January 31, 2019 and 2018 was $0 million, $0 million and $0.4 million, respectively.

During the year ended January 31, 2019, the former executive director, key management and employees voluntarily surrendered options to subscribe for a total of 1,434,410 shares of common stock. This decrease is primarily due to the surrender of share options, resulting in an accelerated share-based payment expense of the remaining fair value of those awards during the twelve months ended January 31, 2019.

At December 31, 2019, there was $2.0 million of unrecognized compensation expense related to stock options that is expected to be recognized over a weighted-average period of 2.4 years.

There was no income tax benefits realized from stock option exercises during the eleven-month period ended December 31, 2019, year ended January 31, 2019 and year ended January 31, 2018, respectively as there were no exercises of stock options.

The fair value per share option award granted and the assumptions used in the calculations are as follows:
Date of grantType of
award		Number of
shares		Exercise
price 		Share price
at grant
date 		Fair value
per option
Award
life
(years)		Risk free
rate
April 07, 2011EMI1,174 5.30 5.30 3.85 5.002.70 %
May 10, 2012EMI30,009 4.85 4.20 1.95 5.001.00 %
December 24, 2012EMI4,300 6.85 6.85 4.75 5.000.90 %
January 31, 2013EMI14,594 1.60 7.45 5.85 5.001.00 %
December 18, 2013Unapproved15,272 1.65 15.15 13.50 5.001.00 %
July 15, 2014Unapproved20,000 6.90 6.90 5.55 1.900.50 %
June 23, 2016Unapproved22,115 0.05 7.75 7.70 0.500.30 %
October 19, 2018Unapproved788,377 1.90 1.90 0.60 3.000.81 %
October 19, 2018Unapproved762,994 1.90 1.90 0.80 3.000.90 %
March 29, 2019Unapproved916,000 1.8 1.8 0.653.000.63 %
March 29, 2019Unapproved1,300,000 1.8 1.8 0.803.000.63 %
December 23, 2019Unapproved600,000 1.351.350.554.000.54 %
December 23, 2019Unapproved170,000 1.351.350.453.000.54 %
4,644,835 
The key assumptions used in calculating the share-based payments are as follows:
a.Black-Scholes valuation methodology was used for all share options issued since 2016. These options do not have market-based performance related conditions.
b.The majority of share option awards made before 2016 had market-based performance related conditions and have been modeled using the Monte-Carlo methodology. The options granted on January 31, 2013, and December 18, 2013, do not have market-based performance related conditions.
c.Figures in the range of 39%-134% have been used for expected volatility. This has been derived from historic share price performance, weighted to exclude periods of unusually high volatility.
d.Expected dividend yield is nil, consistent with the Directors’ view that the Group’s business model is to generate value through capital growth rather than the payment of dividends.
e.The risk-free rate is equal to the prevailing U.K. Gilts rate at grant date that most closely matches the expected term of the grant.
f.Share options are assumed to be exercised immediately on vesting.
g.The fair value of share options awarded where there are different vesting installments is the average of the fair values calculated per installment.
At December 31, 2019, the outstanding restricted stock units ("RSUs") in the form of nominal-cost options, which have been granted to non-executive directors, are shown below: 
Date of grantExercise
price 		Number of
shares		Date from which
exercisable		Expiry date
January 11, 20190.05 138,461 January 11, 2020December 31, 2020
138,461 


The movement in the number of RSUs is set out below:
Number of sharesWeighted average exercise priceWeighted average remaining contractual termAggregate intrinsic value
Outstanding at February 1, 2019162,851 $0.05 
Exercised during the year(24,390)0.05 
Number of RSUs outstanding at December 31, 2019138,461 $0.05 1 year$1.55 
Vested or expected to vest at December 31, 2019— $0.05 1 year$— 

No RSUs were capable of being exercised. The weighted-average grant-date fair value of stock options granted during the eleven months period ended December 31, 2019 and for the year ended January 31, 2019 was $1.60 and $14.30 per share. RSUs of 55,175 shares were granted for the year ended January 31, 2018. The aggregate intrinsic value of our stock options (the amount by which the market price of the stock on the date of exercise exceeded the exercise price of the option) exercised during the eleven months period ended December 31, 2019, and for the years ended January 31, 2019 and 2018 was $118,261, $39,535 and $0, respectively.

At December 31, 2019, there was no unrecognized compensation expense related to RSU's.

There was $0.1 million of income tax benefits realized from stock option exercises during the eleven-month period ended December 31, 2019, and none for the years ended January 31, 2019 and 2018.
Date of grantNumber of
shares		Exercise
price 		Share price
at grant
date 		Fair value
per option
Award
life
(years)		Risk free
rate
January 11, 2019138,461 $0.05 $1.65 $1.60 1 year0.79 %
The key assumptions used in calculating the share-based payments are as follows:
a.Black-Scholes valuation methodology was used for all RSUs.
b.Volatility has been estimated at 57%. This has been derived from historical share price performance, weighted to exclude periods of unusually high volatility.
c.Expected dividend yield is nil, consistent with the Directors’ view that the Group’s business model is to generate value through capital growth rather than the payment of dividends.
d.The risk-free rate is equal to the prevailing U.K. Gilts rate at grant date that most closely matches the expected term of the grant.
e.RSUs are assumed to be exercised immediately on vesting.

On December 24, 2019, the Group issued a warrant over 3,358,732 shares of common stock to a consultant in exchange for certain services. The warrant have an exercise price of $1.45 and vest quarterly over three years. If the consulting agreement terminates prior to three years after the date of the grant, all unvested Warrant will be deemed lapsed.

The fair value of shares of common stock involved is estimated on the date of grant using Black-Scholes valuation methodology that uses the assumptions noted in the following table. Because Black-Scholes valuation methodology incorporate ranges of assumptions for inputs, those ranges are disclosed. Expected volatilities are based on historical share price performance, weighted to exclude periods of unusually high volatility. The Group assumed the warrant to be exercised immediately on vesting. The risk-free rate is equal to the prevailing UK Gilts rate at grant date that most closely matches the expected term of the grant. Expected dividend yield is nil, consistent with the Directors’ view that the Group’s business model is to generate value through capital growth rather than the payment of dividends.
Date of grantExercise
price 		Number of
shares		Date from which
exercisable		Expiry date
December 24, 20191.45 3,358,732 March 24, 2020December 24, 2029
3,358,732 

As at December 31, 2019, 3,358,732 of consultant warrants were expected to vest and had an intrinsic value of $0.5 million. No consultant warrants were vested or capable of being exercised . The consultant warrants outstanding at December 31, 2019, had a weighted average exercise price of $1.45 and a weighted average remaining contractual life of 9.98 years.
At December 31, 2019, there was $2.2 million of unrecognized compensation expense related to warrants that is expected to be recognized over a weighted-average period of 5 years.

The fair value per consultant warrant granted and the assumptions used in the calculations are as follows:
Date of grantNumber of
shares		Exercise
price 		Share price
at grant
date 		Fair value
per option
Award
life
(years)		Risk free
rate
December 24, 20193,358,732 1.45 1.35 0.40 3.000.54 %
The key assumptions used in calculating the share-based payments are as follows:
a.Black-Scholes valuation methodology was used for the consultant warrants.
b.Volatility has been estimated using a range of 52% to 69%. This has been derived from historical share price performance, weighted to exclude periods of unusually high volatility.
c.Expected dividend yield is nil, consistent with the Directors’ view that the Group’s business model is to generate value through capital growth rather than the payment of dividends.
d.The risk-free rate is equal to the prevailing U.K. Gilts rate at grant date that most closely matches the expected term of the grant.
e.Consultant warrants have a term of 5 years.