Schedule of Weighted Average Assumptions to Calculate Fair Value of Stock Options

The fair value of each stock option is estimated on the date of grant using a Black-Scholes option pricing model applying the weighted-average assumptions noted in the following table:

	Six Months Ended June 30, (unaudited)
	2022			2021
Expected life (in years)		6.25			6.24
Risk-free interest rates		2.03	%		1.06	%
Volatility		73.4	%		73.1	%
Dividend yield		-	%		-	%

Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity

A summary of activity under the 2021 Plan is as follows (in thousands, except per share amounts):

	Number of Options Outstanding			Number of RSUs Outstanding			Weighted Average Exercise Price
December 31, 2021	-			-			$	-
Options granted		5,731			-			1.39
Options expired/forfeited/cancelled		(496	)		-			1.40
RSUs granted ⁽¹⁾		-			994			-
RSUs forfeited		-			(27	)		-
June 30, 2022		5,235			967		$	1.39
Options exercisable at June 30, 2022		-					$	-

(1)

On February 11, 2022, Lineage granted 694,424 RSUs to certain employees, including the Company’s executive officers, to further align management with the achievement of certain development milestones under the Roche Agreement. For each RSU, half of the common shares subject to the RSU will vest in four equal annual installments beginning on the first anniversary of the grant date. The other half of the common shares will vest in connection with the achievement of certain development milestones set forth in the Roche Agreement. Additionally, on March 10, 2022, Lineage granted 300,000 RSUs to Brian Culley, its Chief Executive Officer. 100,000 of these RSUs will vest on or prior to March 9, 2023, and 100,000 will vest on each of the second and third anniversaries of such date, upon the achievement of certain per share performance targets, calculated based on the trailing 20-day volume weighted average price of the Company’s common shares as of the date of determination.

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity

A summary of activity under the Asterias Equity Plan is as follows (in thousands, except per share amounts):

	Number of Options Outstanding			Weighted Average Exercise Price
December 31, 2021		241		$	1.57
Options forfeited		(241	)		1.57
June 30, 2022		-		$	-
Options exercisable at June 30, 2022		-		$	-