Share-Based Compensation

3 Months Ended

Mar. 31, 2023

Share-Based Compensation

Share-Based Compensation

13.Share-Based Compensation

During the three month period ended March 31, 2023, in accordance with the terms of the Annual Increase of the Vaccitech plc Share Award Plan 2021 (the “Plan”), the total number of ordinary shares available for issuance under the Plan increased by 4% of the Company’s issued and outstanding ordinary shares as of January 1, 2023.

For the three months ended March 31, 2023, the Company granted 1,987,289 options to employees and directors with a weighted average grant date fair value of $2.01 and a weighted average exercise price of $2.53 per share. For the three months ended March 31, 2022, the Company granted 1,632,922 options to employees and directors with a weighted average grant date fair value of $3.75 and a weighted average exercise price of $11.24 per share. For the three months ended March 31, 2023, the Company canceled 57,970 options to employees and directors for forfeitures on unvested options when leaving the Company (March 31 2022: nil).

The fair value of each stock option issued to employees was estimated at the date of grant using the Black-Scholes model with the following weighted-average assumptions:

	Three months ended
	March 31,
	2023		2022
Expected volatility	97.4	%	92.3	%
Expected term (years)	6.00		6.00
Risk-free interest rate	3.6	%	1.9	%
Expected dividend yield	—	%	—	%

As of March 31, 2023, 6,807,859 options with a weighted average exercise price of $9.69 were outstanding. As of March 31, 2023, there was $9.0 million unrecognized compensation cost related to stock options, which is expected to be recognized over a weighted average period of 2.1 years. As of March 31, 2022, 4,814,173 options with a weighted average exercise price of $9.52 were outstanding. As of March 31, 2022, there was $14.8 million unrecognized compensation expense related to stock options, which is expected to be recognized over a weighted average period of 2.36 years.

Share based compensation expense is classified in the unaudited condensed consolidated statements of operations and comprehensive loss as follows (in thousands):

	Three months ended March 31,
	2023		2022
Research and development	$	1,119	$	842
General and administrative		1,103		3,142
Total	$	2,222	$	3,984