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Share-based Compensation
 6 Months Ended
Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Share-based Compensation Share-based Compensation
The Company and the Centessa Predecessor Group recorded share-based compensation expense in the following expense categories in the unaudited interim consolidated and combined statements of operations and comprehensive loss (amounts in thousands):
SuccessorPredecessor
Three Months Ended
June 30, 2022		Three Months Ended
June 30, 2021		Six Months Ended
June 30, 2022
Period from January 30, 2021 through
June 30, 2021
Period from January 1, 2021 through
January 29, 2021
Research and development$2,654 $924 $5,487 $2,041 $— 
General and administrative2,949 2,305 5,834 3,919 — 
$5,603 $3,229 $11,321 $5,960 $— 
Centessa Pharmaceuticals plc (Successor) Stock Options
The following table summarizes stock option activity for the six months ended June 30, 2022:
Number of SharesWeighted-Average Exercise Price Per ShareWeighted-Average Remaining Contractual Term
Balance at January 1, 202211,730,382 $8.07 9.2 years
Granted4,164,884 $9.05 
Exercised(77,754)$5.21 
Forfeited(296,188)$7.35 
Balance at June 30, 2022
15,521,324 $8.37 9.0 years
Exercisable at June 30, 2022
3,799,656 $6.89 8.7 years
Vested and expected to vest at June 30, 2022
15,521,324 
The weighted-average grant date fair value of options granted was $6.05 per share for the six months ended June 30, 2022. As of June 30, 2022, the total unrecognized compensation expense related to unvested stock option awards was $60.5 million, which the Company expects to recognize over a weighted-average period of 3.1 years.
Based on the trading price of $4.87 per ADS, which is the closing price as of June 30, 2022, the aggregate intrinsic value of options as of June 30, 2022 was $0.6 million, of which $0.5 million is related to vested options.
During the three months ended June 30, 2022, the fair value of each option was estimated on the date of grant using the weighted average assumptions in the table below:
Expected term6.0 years
Expected stock price volatility75.9 %
Risk-free interest rate1.9 %
Expected dividend yield0 %
The Company uses the Black-Scholes option pricing model to value its stock option awards. The expected life of the stock options is estimated using the “simplified method,” as the Company has limited historical information from which to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior for its stock option grants. The simplified method is the midpoint between the vesting period and the contractual term of the option. For share price volatility, the Company uses comparable public companies as a basis for its expected volatility to calculate the fair
value of option grants. The risk-free rate is based on the U.S. Treasury yield curve commensurate with the expected life of the option. Forfeitures of stock options are recognized in the period the forfeiture occurs.
Restricted Share Awards
The following table summarizes ordinary share activity for the six months ended June 30, 2022:
Number of Shares
Unvested at January 1, 2022982,944 
Vested(267,512)
Unvested at June 30, 2022
715,432 
As of June 30, 2022, the total unrecognized compensation expense related to unvested ordinary shares was $12.4 million, which the Company expects to recognize over a weighted-average period of 2.9 years.