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):


	Successor								Predecessor
	Three Months Ended September 30, 2022		Three Months Ended September 30, 2021		Nine Months Ended September 30, 2022		Period from January 30, 2021 through September 30, 2021		Period from January 1, 2021 through January 29, 2021
Research and development	$	3,213	$	1,572	$	8,700	$	3,613	$	—
General and administrative	3,814		2,561		9,648		6,480		—
	$	7,027	$	4,133	$	18,348	$	10,093	$	—


	Number of Shares	Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term
Balance at January 1, 2022	11,730,382	$	8.07	9.2 years
Granted	4,914,785	$	8.42
Exercised	(150,588)	$	4.57
Forfeited	(1,548,912)	$	10.48
Balance at September 30, 2022	14,945,667	$	7.92	8.4 years
Exercisable at September 30, 2022	4,551,327	$	7.17	7.4 years
Vested and expected to vest at September 30, 2022	14,945,667

The weighted-average grant date fair value of options granted was $5.64 per share for the nine months ended September 30, 2022. As of September 30, 2022, the total unrecognized compensation expense related to unvested stock option awards was $51.8 million, which the Company expects to recognize over a weighted-average period of 2.8 years.

Based on the trading price of $4.02 per ADS, which is the closing price as of September 30, 2022, the aggregate intrinsic value of options as of September 30, 2022 was $0.3 million, of which $0.2 million is related to vested options.

During the nine months ended September 30, 2022, the fair value of each option was estimated on the date of grant using the weighted average assumptions in the table below:

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.

As of September 30, 2022, the total unrecognized compensation expense related to unvested ordinary shares was $11.3 million, which the Company expects to recognize over a weighted-average period of 2.7 years.

On July 1, 2022, the board of directors of the Company (the “Board”) approved the grant of restricted stock unit awards under the Company’s Amended and Restated 2021 Stock Option and Incentive Plan to certain executive officers and employees of the Company. The grant date fair market value of each award was $5.17. The bulk of the restricted stock unit awards vest in ten equal quarterly installments. The Board, following the recommendations of the Company’s Compensation Committee, approved the restricted stock unit awards as a retention grant to incentivize and encourage retention of certain officers and employees.


			Number of Units
Unvested at January 1, 2022			—
Granted			2,458,950
Vested			(168,895)
Forfeited			(20,000)
Unvested at September 30, 2022			2,270,055

As of September 30, 2022, the total unrecognized compensation expense related to unvested restricted share units was $11.3 million, which the Company expects to recognize over a weighted-average period of 2.3 years.