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Shareholders' Equity
12 Months Ended
Dec. 31, 2022
Shareholders' Equity  
Shareholders' Equity

Note 10. Shareholders’ Equity

10.1.

Share capital

The share capital is set at €421 thousand at December 31, 2022 divided into 42,134,169 fully authorized, subscribed and paid-up shares with a nominal value of €0.01.Changes in share capital during the years ended December 31, 2022, 2021 and 2020 are as follows:

in euros, except number of shares

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

​

​

Premiums 

​

​

​

​

​

​

​

​

Share 

​

related to 

​

Number of 

​

Nominal 

Date

    

Nature of the transactions

    

capital

    

share capital

    

shares

    

value

Balance as of January 1st, 2020

 

268,461

 

86,011,893

 

26,846,112

 

0.01

01/26/2020

​

Capital increase by issuance of ordinary shares – Vesting of AGAs by Company employees (AGA 2018-2)

 

633

 

—

 

63,300

 

0.01

02/07/2020

​

Capital increase by issuance of ordinary shares – Company’s private placement

 

37,783

 

14,962,218

 

3,778,338

 

0.01

02/07/2020

​

Transaction costs related to the Company’s private placement

 

—

 

(319,564)

 

—

 

—

04/17/2020

​

Appropriation of the issue premium

 

—

 

(48,000,000)

 

—

 

—

06/28/2020

​

Capital increase by issuance of ordinary shares – Vesting of AGAs by Company employees (AGA 2019-2)

​

2,270

​

—

​

227,000

​

0.01

07/15/2020

​

Capital increase by issuance of ordinary shares – Company’s initial public offering

​

74,783

​

94,024,272

​

7,478,261

​

0.01

07/15/2020

​

Transaction costs related to the Company’s initial public offering

 

—

 

(7,077,866)

 

—

 

—

11/30/2020

​

Capital increase by emission of ordinary shares – Emission of 10,000 BSA

 

100

 

66,650

 

10,000

 

0.01

12/14/2020

​

Capital increase by issuance of ordinary shares – Vesting of AGAs by Company employees (AGA 2018-3)

 

2,273

 

—

 

227,250

 

0.01

Balance as of December 31, 2020

​

386,302

​

139,667,603

​

38,630,261

​

0.01

06/28/2021

​

Capital increase by issuance of ordinary shares – Vesting of AGAs by Company employees (AGA 2019-1)

​

291

​

—

​

29,100

​

0.01

09/27/2021

​

Capital increase by issuance of ordinary shares – (ATM)

​

20,833

​

25,556,803

​

2,083,334

​

0.01

10/01/2021

​

Capital increase by issuance of ordinary shares – (ATM)

​

1,309

​

1,615,584

​

130,856

​

0.01

10/01/2021

​

Transaction costs related to ATM

​

—

​

(1,768,424)

​

—

​

—

Balance as of December 31, 2021

​

​

​

408,735

​

165,071,566

​

40,873,551

​

0.01

15/06/2022

​

Capital increase by issue of ordinary shares - (ATM3)

​

12,606

​

9,353,504

​

1,260,618

​

0.01

15/06/2022

​

Transaction costs related to ATM

​

—

​

(539,404)

​

—

​

—

Balance as of December 31, 2022

​

421,341

​

173,885,665

​

42,134,169

​

0.01

​

During the year ended December 31, 2022, the main impact on the share capital relates to the capital increase for a gross amount of €9.4 million on June 15, 2022, due to the issuance of 1,260,618 new shares as part of the Company’s At-The-Market program set up on August 2, 2021. For more details on the operation of the fiscal year 2022, please refer to Note 1.2 - Significant events of 2022.

During the years ended December 31, 2021 and 2020, the main impacts on the share capital relate to the following events:

-Capital increase of €25.4 million of cash, consisting of the net proceeds of the two ATM sales on September 27, 2021 and on October 1, 2021;
-Final acquisition of 29,100 AGAs 2019-1 on June 28, 2021;
-$107.7 million initial public offering on the Nasdaq Global Market in July 2020;
-The reclassification of €48.0 million from debit retained earnings to premiums related to share capital following the decision of the General Meeting on April 2020; and
-Capital increase of €14.7 million reserved for a category of investors in February 2020.

For more details on the operations of the fiscal year 2021 and 2020, please refer to Note 1.3 - Significant events of 2021 and 2020.

Movements related to BSA share warrants plans and AGA bonus shares award plans are described in Notes - 10.3 - Share warrants plans and 10.4 - Bonus share award plans.

10.2.

Liquidity agreement

On January 19, 2018, the Company entered into a new liquidity agreement with Kepler Cheuvreux, replacing the previous liquidity agreement with Oddo BHF, for a period of 12 months renewable by tacit agreement. Under the terms of the agreement, the investment services provider (“ISP”) is authorized to buy and sell Inventiva treasury shares without interference from the Company in order to ensure the liquidity of the shares on the Euronext market.

At the date of approval of these financial statements, the liquidity agreement with Kepler Cheuvreux was extended for a new period of 12 months from January 1, 2022.

At December 31, 2020, 2021 and 2022 treasury shares purchased and sold by Inventiva through its ISP, as well as the gains or losses resulting from share purchase, sale, issue and cancellation transactions during the periods, were accounted for as a deduction from equity. Consequently, these transactions had no impact on the Company’s results.

10.3.

Share warrants plans

Share warrants correspond to:

●BSPCE founder share warrants granted to the Company’s employees in 2013 and 2015;
●BSA share warrants granted to Company directors in 2017, with a subscription price set at €0.53;
●BSA share warrants granted to Company service providers in 2018, with a subscription price set at €0.48;
●BSA share warrants granted in 2019 to David Nikodem, a member of Sapidus Consulting Group LLC, a service provider of Inventiva, with a subscription price set at €0.18; and
●BSA share warrants granted in 2020 to David Nikodem, a member of Sapidus Consulting Group LLC and to Jeremy Goldberg, a member of PG Healthcare LLC, service providers of Inventiva, with a subscription price set at €0.29.
●BSPCE founder share warrants granted in 2021 to Frederic Cren and Pierre Broqua, Company’s Directors; and
●BSA share warrants granted in 2021 to David Nikodem, a member of Sapidus Consulting Group LLC, a service provider of Inventiva, with a subscription price set at €2.45.

Characteristics of BSPCE share warrant plans

At January 1, 2022, two BSPCE share warrant plans were outstanding: BSPCE 2013-1 and BSPCE 2021.

The main characteristics of the plans are described in the following table:

​

​

​

​

​

​

​

​

    

BSPCE 2013-1

    

BSPCE 2021

 

Decision of issuance by the Board of Directors

 

13/12/2013

​

04/16/2021

​

Grant date

 

13/12/2013

​

04/16/2021

​

Beneficiary

 

3 employees

​

Executive Directors (Frederic Cren and Pierre Broqua)

​

Number of BSPCE granted

 

9 027

​

600,000

​

Expiration date

 

25/01/2024

​

03/31/2034

​

Number of shares per BSPCE

 

100

​

1

​

Subscription price (€)

​

58.50

​

0

​

Exercise price (€)

​

0.585

​

11.74

​

Performance condition

​

No

​

Partially (1)

​

Valuation method used

​

Black and Scholes

​

Monte Carlo

​

Fair value at grant date (€)

​

19

​

[5.4 – 5.7] (1)

​

Expected volatility

​

35

%

64

%

Average life (years)

​

5

​

5

​

Risk-free rate

​

1.13

%

0.60

%

Expected dividends

 

—

​

—

​

(1)The fair value at grant date is different depending on whether the BSPCEs are subject to market performance conditions.

Characteristics of BSA share warrant plans

At January 1, 2022, seven BSA share warrant plans were outstanding: BSA 2017, BSA 2018, BSA 2019, BSA 2019 bis, BSA 2019 ter and BSA 2021.

​

The main characteristics of the plans are described in the following table:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

    

BSA

​

​

​

BSA

​

​

​

​

 

​

    

BSA 2017

    

2018-1

    

BSA 2019

    

2019 bis

    

BSA 2019 ter

    

BSA 2021

 

Decision of issuance by the Board of Directors

​

05/29/2017

​

12/14/2018

 

06/28/2019

 

03/09/2020

 

03/09/2020

​

04/16/2021

​

Grant date

​

05/29/2017

​

12/14/2018

 

06/28/2019

 

03/09/2020

 

03/09/2020

​

04/16/2021

​

Beneficiary

​

Directors

​

Service providers

 

Service providers

 

Service providers

 

Service providers

​

Service providers

​

Vesting period (year)

​

3 tranches: 1 year, 2 years and 3 years

​

between 1 and 3 years

 

1

 

1

 

between 1 and 3 years

​

3

​

Expiration date

​

05/29/2027

​

12/14/2028

 

06/28/2029

 

03/09/2030

 

03/09/2030

​

03/31/2034

​

Number of BSA granted

​

195,000

​

126,000

 

10,000

 

10,000

 

36,000

​

50,000

​

Number of shares per BSA

​

1

​

1

 

1

 

1

 

1

​

1

​

Subscription premium price per share (€)

​

0.534

​

0.48

 

0.18

 

0.29

 

0.29

​

2.45

​

Exercise price per share (€)

​

6.675

​

6.067

 

2.20

 

3.68

 

3.68

​

11.74

​

Performance condition

​

No

​

No

 

No

 

No

 

No

​

Yes

​

Valuation method

​

Black and Scholes

​

Monte Carlo

​

Fair value per BSA at grant date (€)

​

2.47

​

1.98

​

0.48

​

0.90

​

0.90

​

[3.0 – 3.2] (1)

​

Expected volatility

​

40

%

40

%

40

%

40

%

40

%

64

%

Average life (years)

​

6

​

6

​

5.5

​

6

​

6

​

5

​

Risk free rate

​

0.22

%

0.30

%

0.33

%

0.0

%

0.0

%

0.60

%

Expected dividends

​

—

​

—

 

—

 

—

 

—

​

—

​

(1)

The fair value at grant date is different depending on whether the BSPCEs are subject to market performance conditions.

Movements in BSPCE and BSA share warrants (in number of shares issuable upon exercise)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

    

Exercise

    

Outstanding

    

​

    

​

    

​

    

Outstanding

    

Number of

​

​

​

​

price

​

at January 1,

​

​

​

​

​

​

​

at December 31,

​

shares

Type

    

Grant date

    

(in euros)

    

2022

    

Issued

    

Exercised

    

Forfeited

    

2022

    

exercisable

BSPCE — 2013 plan

 

Dec. 13, 2013

 

0.59

 

8,800

 

—

 

—

 

—

 

8,800

 

8,800

BSPCE Plan 2021

​

April 16, 2021

​

11.74

​

600,000

​

—

​

—

​

(120,000)

​

480,000

​

—

Total BSPCE

 

  

 

  

 

608,800

 

—

 

—

 

(120,000)

 

488,800

 

8,800

BSA — 2017 plan

 

May 29, 2017

 

6.67

 

130,000

 

—

 

—

 

—

 

130,000

 

130,000

BSA — 2018 plan

 

Dec. 14, 2018

 

6.07

 

116,000

 

—

 

—

 

—

 

116,000

 

116,000

BSA — 2019 plan

 

June 28, 2019

 

2.20

 

10,000

 

—

 

—

 

—

 

10,000

 

10,000

BSA 2019 Bis

​

March 9, 2020

​

3.68

​

10,000

​

—

​

—

​

—

​

10,000

​

10,000

BSA 2019 Ter

​

March 9, 2020

​

3.68

​

36,000

​

—

​

—

​

—

​

36,000

​

24,000

BSA - Plan 2021-1

​

April 16, 2021

​

11.74

​

20,000

​

—

​

—

​

(4,000)

​

16,000

​

—

Total BSA

 

  

 

  

 

322,000

 

—

 

—

 

(4,000)

 

318,000

 

290,000

Total

​

​

​

​

 

930,800

 

—

 

—

 

(124,000)

 

806,800

 

298,800

​

The change in BSPCE and BSA share warrants over 2022 can be broken down as follows:

●Cancellation of 120,000 BSPCE following the recruitments conditions that haven’t been reached; and
●Cancellation of 4,000 BSA following an employee departure.

At December 31, 2022, a total of 480,088 BSPCEs (or 488,800 shares) and 318,000 BSAs were outstanding, which corresponds to a total of 806,800 shares, the maximum number of shares to be issued when all related conditions are met.

Share based payment expense totaled €765 thousand for the year ended December 31, 2022 (compared to €859 thousand for the year ended December 31, 2021 and €18 thousand for the year ended December 31, 2020) and were recognized in personnel costs (see Note 17.1 - Personnel costs and headcount).

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

    

Exercise

    

Outstanding

    

​

    

​

    

​

    

Outstanding

    

Number of

​

​

​

​

price

​

at January 1,

​

​

​

​

​

​

​

at December 31,

​

shares

Type

​

Grant date

    

(in euros)

    

2021

    

Issued

    

Exercised

    

Forfeited

    

2021

    

exercisable

BSPCE — 2013 plan

​

Dec. 13, 2013

 

0.59

 

8,800

 

—

 

—

 

—

 

8,800

 

8,800

BSPCE Plan 2021

​

April 16, 2021

 

11.74

 

—

 

600,000

 

—

 

—

 

600,000

 

—

Total BSPCE

​

  

 

  

 

8,800

 

600,000

 

—

 

—

 

608,800

 

8,800

BSA — 2017 plan

​

May 29, 2017

 

6.67

 

130,000

 

—

 

—

 

—

 

130,000

 

130,000

BSA — 2018 plan

​

Dec. 14, 2018

 

6.07

 

116,000

 

—

 

—

 

—

 

116,000

 

116,000

BSA — 2019 plan

​

June 28, 2019

​

2.20

​

10,000

​

—

​

—

​

—

​

10,000

​

10,000

BSA 2019 Bis

​

March 9, 2020

​

3.68

​

10,000

​

—

​

—

​

—

​

10,000

​

10,000

BSA 2019 Ter

​

March 9, 2020

 

3.68

 

36,000

 

—

 

—

 

—

 

36,000

 

12,000

BSA - Plan 2021-1

​

April 16, 2021

 

11.74

 

—

 

50,000

 

—

 

(30,000)

 

20,000

 

—

Total BSA

​

​

​

  

​

302,000

​

50,000

​

—

​

(30,000)

​

322,000

​

278,000

Total

​

​

​

​

​

310,800

​

650,000

​

—

​

(30,000)

​

930,800

​

286,800

​

The change in BSPCE and BSA share warrants over 2021 can be broken down as follows:

●the issuance of 50,000 new 2021-1 Bis BSAs allocated to ISLS Consulting and David Nikodem, a member of Sapidus Consulting Group LLC, a service provider of the Company, of which 30,000 BSA 2021-1 allocated to ISLS Consulting have been cancelled due to the non-payment of warrants; and
●the issuance of 600,000 new 2021 BSPCE allocated to the Company’s directors, Frederic Cren and Pierre Broqua.

At December 31, 2021, a total of 600,088 BSPCEs (or 608,800 shares) and 322,000 BSAs were outstanding, which corresponds to a total of 930,800 shares, the maximum number of shares to be issued when all related conditions are met.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

    

Exercise

    

Outstanding

    

​

    

​

    

​

    

Outstanding

    

Number of

​

​

​

​

price

​

at January 1,

​

​

​

​

​

​

​

at December 31,

​

shares

Type

    

Grant date

    

(in euros)

    

2020

    

Issued

    

Exercised

    

Forfeited

    

2020

    

exercisable

BSPCE — 2013 plan

 

Dec. 13, 2013

 

0.59

 

8,800

 

—

 

—

 

—

 

8,800

 

8,800

Total BSPCE

 

​

 

​

 

8,800

 

—

 

—

 

—

 

8,800

 

8,800

BSA — 2017 plan

 

May 29, 2017

 

6.67

 

140,000

 

—

 

(10,000)

 

—

 

130,000

 

130,000

BSA — 2018 plan

 

Dec. 14, 2018

 

6.07

 

116,000

 

—

 

—

 

—

 

116,000

 

77,334

BSA — 2019 plan

 

June 28, 2019

 

2.20

 

10,000

 

—

 

—

 

—

 

10,000

 

10,000

BSA 2019 Bis

​

March 9, 2020

​

3.68

​

—

​

10,000

​

—

​

—

​

10,000

​

—

BSA 2019 Ter

 

March 9, 2020

 

3.68

 

—

 

36,000

 

—

 

—

 

36,000

 

—

Total BSA

​

​

​

​

 

266,000

 

46,000

 

(10,000)

 

—

 

302,000

 

217,334

Total

​

​

​

​

​

274,800

​

46,000

​

(10,000)

​

—

​

310,800

​

226,134

​

The change in BSPCE and BSA share warrants over 2020 can be broken down as follows:

●the issuance of 10,000 new 2019 Bis BSAs allocated to Jeremy Goldberg, a member of JPG Healthcare LLC;
●the issuance of 36,000 new 2019 Ter BSAs allocated to David Nikodem, a member of Sapidus Consulting Group LLC, a service provider of the Company; and
●the exercise of 10,000 BSA 2017 by Karen Aïach (former administrator).

At December 31, 2020, a total of 88 BSPCEs (or 8,800 shares) and 302,000 BSAs were outstanding, which corresponds to a total of 310,800 shares, the maximum number of shares to be issued when all related conditions are met.

10.4.

Bonus share award plans

At January 1, 2022, two free share award plans were outstanding: AGA 2021 and AGA 2021-bis.

On December 8, 2022, the Company decided to establish a new free share award plan.

The main characteristics are described in the table below:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

AGA 2021

    

AGA 2021-bis

    

AGA 2022

Decision of issuance by the Board of Directors

 

04/16/2021

 

12/08/2021

​

12/08/2022

Grant date

 

04/16/2021

 

12/08/2021

​

12/08/2022

Beneficiary

 

Employees

 

Employees

​

Employees

Vesting period (year)

 

3

 

3

​

1

Holding period (year)

 

—

 

—

​

1

Service condition

 

Yes

 

Yes

​

Yes

Performance condition

 

Partially (1)

 

Partially (1)

​

No

Number of AGA granted

 

466,000

 

123,000

​

373,000

Number of shares per AGA

 

1

 

1

​

1

Valuation method used

​

Dual (1)

​

Dual (1)

​

Dual(1)

Fair value per AGA at grant date

​

[9.8 – 11.3] (1)

​

[11.4 – 12.2] (1)

​

4.18

Expected volatility

​

64

%

64

%

N/A

Average life (years)

​

3

​

2.3

​

N/A

Risk-free rate

​

0.60

%

0.60

%

N/A

Expected dividends

​

—

​

—

​

–

Stock price reference

​

N/A

​

N/A

​

N/A

Non-transferable discount

 

N/A

 

N/A

​

N/A

(1)AGA 2021-1 and AGA 2021-bis plans are partially composed of AGAs subject to a market performance condition. AGAs 2022 aren’t subject to a market performance condition. Accordingly, AGAs not subject to performance conditions are valued on the basis of the share price less future dividends, discounted at the risk-free rate. AGAs subject to performance conditions are valued using the same method, adjusted by a discount applied to reflect the performance condition. This discount is determined using the “Monte Carlo” analysis. The fair value at the grant date is different depending on whether the AGAs are subject to market performance conditions.

Bonus share movements (in number of shares issuable upon exercise)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Stock price

​

Outstanding

​

​

​

​

​

​

​

Outstanding

​

Number of

​

​

​

​

at grant date

​

at January 1,

​

​

​

​

​

​

​

at December 31,

​

shares

Type

    

Grant date

    

(in euros)

    

2022

    

Issued

    

vesting

    

Forfeited

    

2022

    

exercisable

AGA — 2021‑1 plan

 

04/16/21

 

11.30

 

448,000

 

—

 

—

 

(107,200)

 

340,800

 

—

AGA — 2021‑bis plan

 

12/08/21

 

12.20

 

123,000

 

—

 

—

 

(46,200)

 

76,800

 

—

AGA —2022 plan

​

12/08/22

​

4.18

​

—

​

373,000

​

—

​

—

​

373,000

​

—

Total AGA

​

​

​

​

 

571,000

 

373,000

 

—

 

(153,400)

 

790,600

 

—

​

During 2022, the change in AGA bonus shares over the period can be broken down as follows:

-New free share award plan AGA 2022 granted 373,000 shares;
-The cancellation of 107,200 shares of AGA 2021-1 plan that have forfeited following the departure of employees (22,000 shares) and the recruitments conditions that haven’t been reached (85,200 shares The accounting impacts of not meeting these conditions are described in Note 17.1 - Payroll costs and workforce; and
-The cancellation of 46,200 shares of AGA 2021-bis plan that have forfeited following the departure of employees (27,000 shares) and the recruitments conditions that have not been reached (19,200 shares).

At December 31, 2022, 790,600 AGAs were outstanding.

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Share based payments expense totaled €1,452 thousand for the year ended December 31, 2022 (compared to €1,231 thousand for the year ended December 31, 2021 and €920 thousand for the year ended December 31, 2020) and were recognized in personnel costs (see Note 17.1 - Personnel costs and headcount).

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December 31,

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shares

Type

    

Grant date

    

(in euros)

    

2021

    

Issued

    

vesting

    

Forfeited

    

2021

    

exercisable

AGA — 2019‑1 plan

 

08/28/19

 

2.00

 

29,100

 

—

 

(29,100)

 

—

 

—

 

—

AGA — 2021‑1 plan

 

04/16/21

 

11.30

 

—

 

466,000

 

—

 

(18,000)

 

448,000

 

—

AGA —2021‑bis plan

 

08/12/21

 

12.20

 

—

 

123,000

 

—

 

—

 

123,000

 

—

Total AGA

 

  

 

  

 

29,100

 

589,000

 

(29,100)

 

(18,000)

 

571,000

 

—

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During 2021, the change in AGA bonus shares over the period can be broken down as follows:

●The allocation of two new plans AGA 2021-1 and AGA 2021-bis to employees of the Company for a total of 589,000 potential new shares;
●The definitive vesting of 29,100 AGA 2019-1. As a result, 29,100 new shares were issued; and
●The cancellation of a total of 18,000 AGA 2021-1 that have forfeited following the departure of employees.

The 2021-1 and 2021-bis AGAs are exercisable with a condition of presence, combined for half of them with certain performance conditions, at the end of a vesting period expiring on the date of the Board of Directors’ meeting planned to approve the Company’s financial statements for the year ending December 31, 2023 and will be exercisable no later than March 31, 2034.

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Stock

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price

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at grant

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Outstanding

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Number of

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at December 31,

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shares

Type

    

Grant date

    

(in euros)

    

2020

    

Issued

    

vesting

    

Forfeited

    

2020

    

exercisable

AGA — 2018-2 plan

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January 26, 2018

 

5.76

 

63,300

 

—

 

(63,300)

 

—

 

—

 

—

AGA — 2018-3 plan

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December 14, 2018

 

6.28

 

227,250

 

—

 

(227,250)

 

—

 

—

 

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AGA — 2019-1 plan

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June 28, 2019

 

2.00

 

37,500

 

—

 

—

 

(8,400)

 

29,100

 

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AGA — 2019-2 plan

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June 28, 2019

 

2.00

 

228,000

 

—

 

(227,000)

 

(1,000)

 

—

 

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Total AGA

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556,050

 

—

 

(517,550)

 

(9,400)

 

29,100

 

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During 2020, the change in AGA bonus shares over the period can be broken down as follows:

●The definitive vesting of 63,300 AGA 2018-2, 227,000 AGA 2019-2 and 227,250 AGA 2018-3. As a result, 517,550 new shares were issued; and
●The cancellation of a total of 8,400 AGA 2019-1 AGA and 1,000 AGA 2019-2 that have forfeited following the departure of employees.