0001558370-22-018966 | 20-F/A | XBRL Viewer

Document and Entity Information	12 Months Ended
Document and Entity Information	Dec. 31, 2021 shares
Document Information [Line Items]
Document Type	20-F/A
Document Registration Statement	false
Document Shell Company Report	false
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2021
Entity File Number	001-40241
Entity Registrant Name	LAVA Therapeutics NV
Entity Incorporation, State or Country Code	P7
Entity Address, Country	NL
Entity Address, Address Line One	Yalelaan 60
Entity Address, Adress Line Two	CM
Entity Address, City or Town	Utrecht
Entity Address, Postal Zip Code	3584
Title of 12(b) Security	Common shares, par value $0.14 per share
Trading Symbol	LVTX
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	25,775,538
Entity Central Index Key	0001840748
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	FY
Amendment Flag	false
ICFR Auditor Attestation Flag	false
Document Accounting Standard	International Financial Reporting Standards
Auditor Name	R.M.N. Admiraal RA
Auditor Firm ID	1395
Auditor Location	Eindhoven, the Netherlands
Business Contact [Member]
Document Information [Line Items]
Entity Address State Or Province	PA
Entity Address, Address Line One	520 Walnut St
Entity Address, Adress Line Two	Suite 1150
Entity Address, City or Town	Philadelphia
Entity Address, Postal Zip Code	PA 19106
Contact Personnel Email Address	ir@lavatherapeutics.com
Contact Personnel Name	Lava Therapeutics, Inc

Consolidated statements of loss and other comprehensive loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenue:
Revenue	$ 5,000	$ 3,500
Operating expenses:
Research and development	(37,193)	(15,701)	$ (8,347)
General and administrative	(12,160)	(2,719)	(1,236)
Total operating expenses	(49,353)	(18,420)	(9,583)
Operating loss	(44,353)	(14,920)	(9,583)
Interest expense, net	(625)	(342)	(86)
Foreign currency exchange loss, net	(212)	(201)	(18)
Total non-operating expenses	(837)	(543)	(104)
Loss before income tax	(45,190)	(15,463)	(9,687)
Income tax expense	(157)	(43)
Loss for the year	(45,347)	(15,506)	(9,687)
Other comprehensive loss
Foreign currency translation adjustment for the year	(6,210)	(577)	(379)
Total comprehensive loss for the year	$ (51,557)	$ (16,083)	$ (10,066)
Loss per share
Loss per share, basic	$ (2.30)	$ (38.85)	$ (21.65)
Loss per share, diluted	$ (2.28)	$ (38.85)	$ (21.65)
Weighted average common shares outstanding, basic	19,758,169	399,126	447,525
Weighted average common shares outstanding, diluted	19,758,169	399,126	447,525

Consolidated statements of financial position - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Jan. 01, 2020
Non-current assets:
Property and equipment, net	$ 1,445	$ 1,113	$ 733
Right-of-use assets	501	382	414
Other non-current assets and security deposits	796	769	30
Total non-current assets	2,742	2,264	1,177
Current assets:
Receivables and other	363	1,140	69
Prepaid expenses and other current assets	2,568	117	62
Deferred offering costs		811
VAT receivable	371	336	151
Investments	42,334
Cash and cash equivalents	90,869	15,818	7,338
Total current assets:	136,505	18,222	7,620
Total assets	139,247	20,486	8,797
Equity
Share capital	3,653
Share premium		41,088	19,561
Equity-settled employee benefits reserve	5,219	922	365
Foreign currency translation reserve	(4,042)	(1,003)	(378)
Additional paid in capital	192,270
Accumulated deficit	(78,733)	(33,386)	(13,704)
Total equity	118,367	7,621	5,844
Non-current liabilities
Deferred revenue		1,655
Lease liabilities	320	271	257
License liabilities	5,028
Borrowings	4,284	3,604	1,272
Total non-current liabilities	9,632	5,530	1,529
Current liabilities
Trade payables and other	2,553	934	422
Lease liabilities	261	207	236
License liabilities	5,028
Deferred revenue	1,527	4,521
Accrued expenses and other current liabilities	1,879	1,673	766
Total current liabilities	11,248	7,335	1,424
Total liabilities	20,880	12,865	2,953
Total equity and liabilities	$ 139,247	$ 20,486	$ 8,797

Consolidated statements of changes in equity - USD ($) $ in Thousands	Share capital Common share IPO	Share capital Common share Over-Allotment Option	Share capital Common share	Share premium Series A Preference Shares	Share premium Series B Preference Shares	Share premium Series C Preference Shares	Equity-settled employee benefits reserve	Foreign currency translation reserve	Additional paid-in capital Common share IPO	Additional paid-in capital Over-Allotment Option	Additional paid-in capital	Accumulated losses	Series A Preference Shares	Series B Preference Shares	Series C Preference Shares	Common share IPO	Over-Allotment Option	Total
Beginning Balance at Dec. 31, 2018				$ 1,221	$ 18,340		$ 173					$ (4,017)						$ 15,717
Beginning Balance (in shares) at Dec. 31, 2018			447,525										1,755,845	3,899,766
Loss for the period												(9,687)						(9,687)
Share-based compensation expense							192											192
Foreign currency translation adjustment								$ (378)										(378)
Ending balance at Dec. 31, 2019				1,221	18,340		365	(378)				(13,704)						5,844
Ending balance (in shares) at Dec. 31, 2019			447,525										1,755,845	3,899,766
Loss for the period												(15,506)						(15,506)
Issuance of stock						$ 22,026												22,026
Issuance of stock (in shares)															4,133,805
Series A Preferred and common shares repurchase				(499)								(4,176)						(4,675)
Series A Preferred and common shares repurchase (in shares)			(165,750)										(718,250)
Share-based compensation expense							557											557
Foreign currency translation adjustment								(625)										(625)
Ending balance at Dec. 31, 2020				722	18,340	22,026	922	(1,003)				(33,386)						7,621
Ending balance (in shares) at Dec. 31, 2020			281,775										1,037,595	3,899,766	4,133,805
Loss for the period												(45,347)						(45,347)
Share split			$ 1,308	(143)	(536)	(589)					$ (40)
Issuance of stock	$ 947	$ 61	1,425			60,373			$ 88,115	$ 5,877						$ 89,062	$ 5,938	61,798
Issuance of stock (in shares)	6,700,000	425,712													9,945,221
Series A Preferred and common shares repurchase			$ (122)	(400)							(4,760)							(5,282)
Series A Preferred and common shares repurchase (in shares)			(165,750)										(718,250)
Conversion of preference shares				$ (179)	$ (17,804)	$ (81,810)					99,793
Conversion of preference shares (in shares)			18,298,137										(319,345)	(3,899,766)	(14,079,026)
Issuance of VUmc common stock			$ 34								3,621							$ 3,655
Issuance of VUmc common stock (in shares)			235,664															235,664
Share-based compensation expense							4,297											$ 4,297
Foreign currency translation adjustment								(3,039)			(336)							(3,375)
Ending balance at Dec. 31, 2021			$ 3,653				$ 5,219	$ (4,042)			$ 192,270	$ (78,733)						$ 118,367
Ending balance (in shares) at Dec. 31, 2021			25,775,538

Consolidated statements of changes in equity (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
IPO
Stock issued price per share	$ 15.00
Issuance costs	$ 11,500
Series C Preference Shares
Stock issued price per share	$ 6.22	$ 5.48
Issuance costs	$ 92	$ 647

Consolidated statements of cash flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities
Loss before income tax	$ (45,190)	$ (15,463)	$ (9,687)
Adjusted for:
Depreciation and amortization of non-current assets	331	213	99
Foreign currency exchange loss, net	562	448
Depreciation and amortization of right-of-use assets	227	251	160
Share-based compensation expense	4,297	557	192
Income tax expense	(157)	(43)
Amortization of premium on investments	446
Changes in working capital:
Receivables and other	777	(1,072)	37
VAT receivable	(35)	(186)	44
Other assets	(2,859)	(795)	82
Trade accounts payable and other	1,618	323	(190)
Deferred offering costs	1,623	(323)
Deferred revenue	(4,649)	6,176
License liabilities	13,713
Other liabilities	649	607	648
Net cash used in operating activities	(28,647)	(9,307)	(8,615)
Cash flows from investing activities
Purchase of property and equipment	(764)	(502)	(762)
Purchases of investments	(45,291)		(30)
Maturities of investments	2,510
Net cash used in investing activities	(43,545)	(502)	(792)
Cash flows from financing activities
Proceeds from common shares from initial public offering, net	94,189
Proceeds from Series C financing, net	61,798	22,025
Payment of Series A preferred and common shares repurchased	(5,167)	(4,849)
Proceeds from borrowings	680	2,033	1,272
Payment of principal portion of lease liabilities	(340)	(240)	(96)
Net cash provided by financing activities	151,160	18,969	1,176
Net increase (decrease) in cash and cash equivalents	78,968	9,160	(8,231)
Cash and cash equivalents at the beginning of year	15,818	7,338	16,002
Effects of exchange rate changes on the balance of cash held in foreign currencies	(3,917)	(680)	(433)
Cash and cash equivalents at end of year	90,869	15,818	$ 7,338
Supplemental schedule of noncash operating and financing activities:
Issuance of 235,664 common shares to VUmc in lieu of payment for license liabilities	$ 3,655
Deferred offering costs in accounts payable and accrued expenses		$ 489

Consolidated statements of cash flows (Parenthetical)	12 Months Ended
Consolidated statements of cash flows (Parenthetical)	Dec. 31, 2021 shares
Consolidated statements of cash flows
Issuance of VUmc common stock (in shares)	235,664

Corporate and Company information

12 Months Ended

Dec. 31, 2021

Corporate and Company information

Corporate and Company information

1.1 Corporate Information

LAVA Therapeutics N.V., formerly LAVA Therapeutics B.V., was founded in 2016 and is incorporated and domiciled in the Netherlands. The Company’s registered office is Yalelaan 60, 3584 CM in Utrecht. The Company is registered at the Chamber of Commerce under number 65335740. In connection with becoming a public company, on March 29, 2021 the Company changed its name from “LAVA Therapeutics, B.V.” to “LAVA Therapeutics N.V.”

The Company and its subsidiary are a clinical-stage immuno-oncology company dedicated to rapidly developing new cancer treatments that leverage the immune system to save patients’ lives. Using our Gammabody platform, the Company is developing a portfolio of novel bispecific antibodies designed to engage and leverage the potency and precision of gamma delta (gd) T cells to elicit a robust, natural anti-tumor immune response and improve outcomes for cancer patients. The Company is advancing its Gammabody pipeline for the development of potential therapeutics in both hematologic malignancies and solid tumors.

The consolidated financial statements of LAVA Therapeutics N.V. were authorized for issue by the Company’s board of directors on March 24, 2022.

1.2 Company information

The consolidated financial statements of the Company include:


			% of equity interest
Name	Legal seat	Country of incorporation	2021		2020
Lava Therapeutics N.V.	Utrecht	The Netherlands	100	%	100	%
Lava Therapeutics INC.	Delaware	United States of America	100	%	100	%

The Company’s 100% subsidiary, LAVA Therapeutics, Inc., which was founded in August 2019, is incorporated in the United States of America and acts as a service provider to the parent, LAVA Therapeutics N.V.

Summary of significant accounting policies

12 Months Ended

Dec. 31, 2021

Summary of significant accounting policies

Summary of significant accounting policies

2. Summary of significant accounting policies

The principal accounting policies applied in the preparation of these consolidated financial statements are included below. These policies have been consistently applied to all of the years presented, unless otherwise stated.

(a)Basis of preparation

The consolidated financial statements of the Company have been prepared in accordance with and comply with IFRS as issued by the IASB.

The consolidated financial statements of the Company have been prepared on a historical cost basis.

The preparation of the consolidated financial statements in conformity with IFRS requires the application of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the accounting policies. The areas involving a greater degree of judgment or complexity, or areas in which assumptions and estimates are significant to the consolidated financial statements, are disclosed in note 3.

Going concern

These consolidated financial statements have been prepared by management on the assumption that the Company will be able to continue as a going concern, which presumes that the Company will, for the foreseeable future, be able to realize its assets and discharge its liabilities in the normal course of business.

Through December 31, 2021, the Company funded its operations with proceeds from sales of equity financings, collaboration and licensing agreements, government grants and borrowings under various agreements. Since inception the Company has incurred recurring net losses. The Dutch Research and Development Act (WBSO) provides compensation for a part of research and development wages and other costs through a reduction in payroll taxes. WBSO grant amounts are offset against wages and salaries and included in research and development expenses in the consolidated statements of loss and comprehensive loss.

As of December 31, 2021, the Company had an accumulated deficit of $78.7 million. The Company expects to continue to generate operating losses in the foreseeable future. The Company expects that its cash, cash equivalents and investments of $133.2 million as of December 31, 2021 will be sufficient to fund its operating expenses and capital expenditure requirements for at least twelve months following the issuance of these financial statements. Accordingly, the consolidated financial statements have been prepared on a going concern basis.

Until we can generate sufficient product revenue to finance our cash requirements, which we may never do, we expect to finance our future cash needs through a combination of public or private equity offerings, debt financings, collaborations, strategic alliances, licensing arrangements and other marketing or distribution arrangements. Disruptions in the financial markets in general may make equity and debt financing more difficult to obtain and may have a material adverse effect on our ability to meet our fundraising needs. If we are unable to obtain sufficient funding in a timely manner or on commercially acceptable terms, we may have to delay, reduce the scope of, or eliminate one or more of our operating activities, and consider other cost reduction initiatives, such as downsizing our operations or withholding initiation or expansion of clinical trials or research. In addition, in the event we are not able to generate sufficient funds, we may be unable to continue as a going concern and our business, financial condition and/or results of operations could be materially and adversely affected and could reduce the price of our common shares and we may ultimately go into insolvency. In addition, any perceived or actual inability by us to finance our clinical development activities and other business activities may cause the market price of our common shares to decline.

COVID-19

In March 2020, the COVID-19 virus caused a worldwide pandemic. Although the short- and long-term effects of this pandemic are unknown, the Company’s business operations have been impacted by the pandemic. To-date these impacts have not been significant to our operations. These have, or may in the future, impact:

●	availability of supplies and equipment for our laboratories;

●	availability of staff;

●	start dates and recruitment in our clinical trials due to risks of opening and available resources at clinical sites;

●	availability of study drug; and

●	fundraising and access to the capital markets.

Management closely monitors the situation and, to its best ability, is focusing on mitigating measures and contingency plans to limit and prevent any potential impact on our business operations as much as possible.

Our financial condition and results of operations are most affected by our capital resources, continued research and development expenses and general and administrative expenses. Although the COVID-19 pandemic has impacted the timing of onboarding investigational sites and enrolling patients in our ongoing Phase 1/2a clinical trial for LAVA-051 and LAVA-1207, to date we have not experienced any material business disruption as a result of the COVID-19 pandemic.

(b)Basis of consolidation

Subsidiaries are all entities over which the Company has control. Control is achieved when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect

those returns through its power over the entity. Subsidiaries are consolidated from the date on which control over the subsidiary is transferred to the Company and are deconsolidated from the date that control over the subsidiary ceases.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Company’s accounting policies. All intercompany assets and liabilities, equity, income, expenses, and cash flows relating to transactions between members of the Company are eliminated in full on consolidation. Certain prior year amounts have been reclassified to reflect current year presentation.

c)Foreign currency

Items included in the financial statements of each of the Company’s entities are measured using the currency of the primary economic environment in which the entity operates. The Company’s consolidated financial statements are presented in USD. The parent company, LAVA Therapeutics B.V., has the functional currency of EUR. The subsidiary company, LAVA Therapeutics, Inc., has the functional currency of USD.

As of December 31, 2021, we have changed our reporting currency for our financial statements to USD, having previously reported in EUR. We believe this presentation better conforms to the expectations of our investor base as a U.S. public company. The change in reporting currency was applied retrospectively effective beginning January 1, 2019. Financial statements for all periods presented have been recast into USD.

All monetary assets and liabilities denominated in foreign currencies are translated into USD using exchange rates in effect as of the date of the balance sheet date. The USD-translated amounts of nonmonetary assets and liabilities as of January 1, 2020 became the historical accounting basis for those assets and liabilities as of January 1, 2020. Revenue and expense transactions are translated at the approximate exchange rate in effect at the time of the transaction, and certain specific equity transactions are translated at the exchange rate in effect at the time of the transaction. All resulting exchange differences were recognized within currency translation adjustment, a separate component of shareholders’ equity.

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized within foreign currency exchange loss, net, in the consolidated statements of loss and comprehensive loss. Foreign exchange gains and losses resulting from the transaction of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are recognized within foreign currency translation adjustment in the consolidated statements of loss and other comprehensive loss.

The results and financial position of all of the Company entities that have functional currency different from the presentation currency are translated into USD as follows:

●	Assets and liabilities are translated at the closing rate at the reporting date;

●	Revenue, deferred revenue and components of equity are translated using the rate at the date the relevant event occurred; and

●	Income and expenses for each statement of loss and other comprehensive loss are translated at average exchange rates.

d)Segment information

Operating segments are identified based on whether the allocation of resources and/ or the assessment of performance of a particular component of Company’s activities are regularly reviewed as a separate operating segment by Company’s Chief Operating Decision Maker. In accordance with IFRS, the Company’s business activities are organized into one reportable segment, which is consistent with the basis of the internal reports that the management regularly reviews in allocating resources and assessing performance.

e)Cash flow statement

The cash flow statement has been prepared using the indirect method. The cash and cash equivalents disclosed in the cash flow statement consisted of cash at banks.

f)Research and development expenses

The Company expenses research and development expenses as incurred and does not capitalize them pursuant to IAS 38, Intangible Assets. The Company’s research and development expenses consist primarily of costs incurred in performing research and development activities, including personnel-related expenses such as salaries, share-based compensation and benefits, facility costs, depreciation and external costs of outside vendors engaged to conduct preclinical and clinical development activities. The Company accounts for a governmental research and development payroll tax subsidy from Wet Bevordering Speur en Ontwikkelingswerk (WBSO) as a reduction from the research and development personnel-related expenses.

g)General and administrative expenses

The Company’s general and administrative expenses consist of personnel-related expenses for employees involved in general corporate functions, including accounting, finance, insurance, tax, legal and human relations, costs associated with outside professional fees such as legal counsel and auditors, costs associated with use by these functions of facilities and equipment, such as depreciation expenses, premises maintenance expenses and other general corporate expenses. General and administrative expenses are expensed as incurred.

h)Share-based awards

Share options granted to employees and consultants providing similar services are measured at the grant date fair value of the equity instruments granted. The grant date fair value is determined through the use of an option-pricing model considering the following variables:

a)	the exercise price of the option;

b)	the expected life of the option;

c)	the current value of the underlying shares;

d)	the expected volatility of the share price;

e)	the dividends expected on the shares; and

f)	the risk-free interest rate for the life of the option.

The Company accounts for these awards as equity-settled share-based payment awards. For the Company’s share option plans, management’s judgment is that the Black-Scholes valuation formula is the most appropriate method for determining the fair value of the options considering the terms and conditions attached to the grants made and to reflect exercise behavior. Prior to the Company’s IPO, as a private company there was no published share price information available. Consequently, the Company estimated the fair value of its shares and the expected volatility of that share value for option grants prior to the IPO. These assumptions and estimates are further discussed in note 19 to the financial statements.

The result of the share option valuations and the related compensation expense that is recognized for the respective vesting periods during which services are received is dependent on the model and input parameters used. Even though management considers the fair values reasonable and defensible based on the methodologies applied and the information available, others might derive a different fair value for the options.

i)Employee benefits

The Company provides defined contribution plans to its employees. Contributions to defined contribution plans are expensed when employees provide services. The Company has no further payment obligations

once the contributions have been paid. The Company’s post-employment schemes do not include any defined benefit plans.

j)Income taxes

Income tax expense comprises current and deferred tax. It is recognized in profit or loss except to the extent that it relates to a business combination, or items recognized directly in equity or in other comprehensive income. Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to tax payable or receivable in respect of previous years. It is measured using tax rates enacted or substantively enacted at the reporting date. Current tax also includes any tax arising from dividends. Current tax assets and liabilities are offset only if certain criteria are met.

Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for:

●	temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss;

●	temporary differences related to investments in subsidiaries, associates, and joint arrangements to the extent that the Company is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

●	taxable temporary differences arising on the initial recognition of goodwill.

Deferred tax assets are recognized for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized; such reductions are reversed when the probability of future taxable profits improves.

Unrecognized deferred tax assets are reassessed at each reporting date and recognized to the extent that it has become probable that future taxable profits will be available against which they can be utilized.

Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date.

The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

k)Cash and cash equivalents

Cash and cash equivalents in the consolidated statements of financial position comprise of cash at banks and on hand and short-term deposits with a maturity of three months or less, which are subject to an insignificant risk of changes in value.

For the purposes of the consolidated statements of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts.

l)Investments

Our investments in debt securities consist entirely of investments in highly-rated corporate bonds, with maturities ranging from three months to one year. All of these investments are classified as current assets in our consolidated statements of financial position. All investments in debt securities have investment-grade credit quality indicators as published by Moody’s and Standard & Poor’s (S&P). We have the intent and ability to hold all investments in debt securities until maturity. Accordingly, all investments are recorded at amortized

cost on our consolidated statements of financial position, with the amortization of bond premiums or discounts and earned interest income recorded in our consolidated statements of loss.

m)Property and equipment

Property, plant, and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. The cost of an item of property, plant and equipment is recognized as an asset if it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably.

Property, plant, and equipment include major expenditures for new assets, improvements and replacement assets that extend the useful lives of assets or increase their revenue-generating capacities. Repair and maintenance costs are expensed as incurred.

Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows:


Building improvements		10
Laboratory equipment		5
Office equipment		5
Information and communication equipment (ICT)		5

The estimated useful life for building improvements is the shorter of the estimated useful life and the lease term. Depreciation of property, plant and equipment used for Laboratory equipment and ICT equipment is included within research and development expenses in the consolidated statements of loss and other comprehensive loss. Depreciation of all other property, plant and equipment is allocated between research and development and general and administrative expenses based on headcount.

The carrying amount of an item of property, plant and equipment is derecognized on disposal, or when no future economic benefits are expected from its use or disposal. The gain or loss arising from the derecognition of an item of property, plant, and equipment (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in “Gain / (loss) on disposal of non-current assets, net” in the consolidated statements of loss and other comprehensive loss when the asset is derecognized.

Management reviews the carrying amount of property, plant, and equipment for impairment when there is an indication that the carrying amount may exceed the expected recoverable amount.

n)Impairment of long-lived assets

Assets that are subject to depreciation or amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. An impairment loss is recognized in the consolidated statements of loss and other comprehensive loss consistent with the function of the assets, for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are largely independent cash inflows. Prior impairments of non-financial assets (other than goodwill) are reviewed for possible reversal each reporting period.

o)Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is reversed.

p)Value added tax

Expenses and assets are recognized net of the amount of value added tax (VAT) except when the VAT incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case the VAT is recognized as part of the cost of acquisition of the asset or as part of the expense item.

The net amount of the VAT recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the consolidated statements of financial position.

q)Financial instruments

(i)

Financial assets

The Company’s financial assets are comprised of cash and cash equivalents, investments, trade and other receivables, security deposits, other current and non-current assets. All financial assets are recognized initially at fair value plus transaction costs that are attributable to the acquisition of the financial asset. Purchases and sales of financial assets are recognized on the settlement date; the date that the Company receives or delivers the asset. The Company classifies its financial assets primarily as cash and cash equivalents and receivables. Receivables are non-derivative financial assets, with fixed or determinable payments that are not quoted in an active market. They are included in current assets.

Financial assets are derecognized when the rights to receive cash flows from the asset have expired, or the Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full.

(ii)

Financial liabilities

The Company’s financial liabilities are comprised of trade and other payables, lease liabilities, and borrowings. All financial liabilities are recognized initially at fair value.

After initial recognition, borrowings are subsequently measured at amortized cost using the effective interest method. The effective interest method amortization is included in finance costs in the consolidated statements of loss and other comprehensive loss.

Payables and borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

Financial liabilities are derecognized when the obligation under the liability is discharged, cancelled, or expires.

(iii)

Fair value measurements

The Company does not hold any financial assets and financial liabilities other than those measured at amortized cost. Management assessed that the carrying values of the Company’s financial assets and financial liabilities measured at amortized cost are a reasonable approximation of their fair values.

r)Leases

The Company is party to lease contracts relating to laboratory and office facilities located in the Netherlands and the U.S.

(i)

Right-of-use assets

The Company recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The recognized right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term. Right-of- use assets are subject to impairment.

(ii)

Lease liabilities

At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees.

In calculating the present value of lease payments, the Company uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset.

Significant accounting judgments, estimates and assumptions

12 Months Ended

Dec. 31, 2021

Significant accounting judgments, estimates and assumptions

Significant accounting judgments, estimates and assumptions

3. Significant accounting judgments, estimates and assumptions

The preparation of the Company’s consolidated financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets, liabilities, and equity in the consolidated financial statements and the accompanying disclosures. Estimates and judgments are based on historical experience and other factors, including expectations of future events, and are continually evaluated. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgments

In the process of applying the Company’s accounting policies, management has made the following judgments, which have the most significant effect on the amounts recognized in the consolidated financial statements:

Clinical trial expenses

As part of the process of preparing our financial statements, we are required to estimate our clinical trial expenses. Our clinical trial accrual process seeks to account for expenses resulting from our obligations under contracts with vendors, consultants and CROs and clinical site agreements in connection with conducting clinical trials. The financial terms of these contracts are subject to negotiations, which vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided to us under such contracts. Our objective is to reflect the appropriate clinical trial expenses in our financial statements by matching the appropriate expenses with the period in which services and efforts are expended. We account for these expenses according to the progress of the trial as measured by subject progression and the timing of various aspects of the trial.

We determine accrual estimates based on estimates of the services received and efforts expended that take into account discussion with applicable personnel and outside service providers as to the progress or state of completion of trials. During the course of a clinical trial, we adjust our clinical expense recognition if actual results differ from our estimates. We make estimates of our accrued expenses and prepaid assets as of each balance sheet date in our financial statements based on the facts and circumstances known to us at that time. Our clinical trial accrual and prepaid assets are dependent, in part, upon the receipt of timely and accurate reporting from CROs and other third-party vendors. Although we do not expect our estimates to differ materially from amounts we actually incur, our understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and may result in us reporting amounts that are too high or too low for any particular period.

Deferred tax assets

Deferred tax assets have not been recognized in respect of tax losses, because the Company has no history of generating taxable profits and at the statement of financial position date, there is no convincing evidence that sufficient taxable profit will be available against which the tax losses can be utilized.

In order to promote innovative technology development activities and investments in new technologies, a corporate income tax incentive has been introduced in Dutch tax law called the Innovation Box. Profits from self-developed qualifying intangible assets are effectively subject to a 7% income tax rate for 2020 and 9% income tax rate for 2021 and future years, instead of the general headline rate of 25% (25.8% as of 2022). Lava Therapeutics N.V. believes it qualifies for the Innovation Box and is in this respect currently in a process for obtaining advance certainty from the Dutch tax authorities.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, which have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

New standards, interpretations and amendments adopted by the Company

The Company adopted the following standards, interpretations, or amendments as of January 1, 2021, none of which had a significant impact on the Company’s financial statements:

●	Amendments to IFRS 9, IAS 39 and IFRS 7: Interest Rate Benchmark Reform (Phase 2).

The Company has not early adopted any standards, interpretations or amendments that have been issued, but are not yet effective. The Company intends to adopt these new and amended standards and interpretations, if applicable, when they become effective. There are no standards presently known that are not yet effective and that would be expected to have a material impact on the Company in current or future reporting periods and on foreseeable future transactions.

Revenue

12 Months Ended

Dec. 31, 2021

Revenue

Revenue

4. Revenue

Research and license agreement

In May 2020, the Company entered into the Janssen Agreement. As part of the Janssen Agreement, the Company received a non-refundable upfront payment of $8 million. As of December 31, 2021, there was $1.5 million of unearned income related to this payment. The revenue has been recognized for twenty months beginning in May 2020, as this method of recognition matches the pattern in which we provide research services to Janssen. The unearned income is being recognized as revenue on a straight-line basis over the remaining four-month term of the research activities under the Janssen Agreement. The Janssen Agreement includes research, development and commercial milestones, which would initiate additional milestone payments. Each milestone payment was recorded as revenue when achieved, as each was linked to the completion of specific research and development activities, rather than recorded over time like the upfront payment.

The Company is entitled to receive tiered royalties based on commercial sales levels from low to mid-single digit percentages of net sales of licensed products. Royalties are payable on a licensed product-by-licensed product and country-by-country basis beginning with the first commercial sale of such licensed product in such country of sale and expiring ten years after such sale, subject to specified and capped reductions for the market entry of biosimilar products, loss of patent coverage of licensed products, and for payments owed to third parties for additional rights necessary to commercialize licensed products in the territory and expires ten (10) years after such sale. The Company is eligible to receive a research milestone and further payments upon the achievement of certain development and commercial milestones.

The Company’s deferred revenue balance relates to amounts received, but not yet earned under the Janssen Agreement. The following table presents changes in the deferred revenue balance:


(in thousands)
Balance at January 1, 2020	$	—
Deferral of revenue		(8,000)
Recognized during the period		2,500
Foreign currency translation difference		(676)
Balance at December 31, 2020		(6,175)
Deferral of revenue		—
Recognized during the period		4,000
Foreign currency translation difference		648
Balance at December 31, 2021	$	(1,527)

Development milestones

In December 2020, the Company achieved the first Research Milestone, as defined in the Janssen Agreement, triggering a milestone payment of $1.0 million. In September 2021, the Company achieved the second Research Milestone, triggering a milestone payment of $1.0 million.

Revenue for the year ended December 31, 2021 was $5.0 million, which consisted of $4.0 million related to the upfront payment and $1.0 million related to the development milestone. Revenue for the year ended December 31, 2020 was $3.5 million, which consisted of $2.5 million related to the upfront payment and $1.0 million related to the development milestone.

Research and development expenses

12 Months Ended

Dec. 31, 2021

Research and development expenses

Research and development expenses

5. Research and development expenses

Research and development expenses include the following categories:


	For the Year Ended December 31,
(in thousands)	2021		2020		2019
VUmc license expenses	$	14,357	$	203	$	—
Pre-clinical and clinical trial expenses		14,188		11,325		5,118
Personnel-related expenses		4,955		2,276		1,360
Research and development activities expenses		1,843		1,022		1,624
Share-based compensation expense		1,036		232		181
Facilities and other research and development expenses		814		643		64
	$	37,193	$	15,701	$	8,347

Refer to note 22 for additional information about VUmc license expenses. Government grants, which are a reduction of payroll taxes in the Netherlands, amounted to $1.7 million in 2021, $1.0 million in 2020 and $0.6 million in 2019. These amounts are an offset to wages and salaries that are part of our research and development expenses in the income statement. The increase in the respective periods was primarily due to increased research activities in the Netherlands.

General and administrative expenses

12 Months Ended

Dec. 31, 2021

General and administrative expenses

General and administrative expenses

6. General and administrative expenses

General and administrative expenses include the following categories:


	For the Year Ended December 31,
(in thousands)	2021		2020		2019
Personnel-related expenses	$	3,800	$	1,474	$	477
Share-based compensation expense		3,261		326		11
Professional and consultant fees		2,593		683		674
Insurance, facilities, fees and other related costs		2,506		236		74
	$	12,160	$	2,719	$	1,236

Interest expense, net

12 Months Ended

Dec. 31, 2021

Interest expense, net

Interest expense, net

7. Interest expense, net


	For the Year Ended December 31,
(in thousands)	2021			2020		2019
Interest expense on borrowings and deposits, net	$	564	$	253	$	13
Interest expense related to leases		61		89		73
	$	625	$	342	$	86

Foreign currency exchange loss, net

12 Months Ended

Dec. 31, 2021

Foreign currency exchange loss, net

Foreign currency exchange loss, net

8. Foreign currency exchange loss, net

Foreign currency exchange loss, net was primarily due to the foreign currency cash position held by the Netherlands parent company, LAVA Therapeutics N.V., as well as transactions with partners and vendors denominated in currencies other than EUR. Foreign currency exchange loss for the years ended December 31, 2021, 2020 and 2019 were $0.2 million, $0.2 million and $0.0 million, respectively.

Taxation

12 Months Ended

Dec. 31, 2021

Taxation

Taxation

9. Taxation

The Company is subject to income taxes in the Netherlands and the United States.

Netherlands

No tax charge or income was recognized during the reporting periods since the Company is in a loss-making position and has a history of losses. As of December 31, 2021 the Company has Dutch tax loss carryforwards of $8.5 million. The 2021 taxable amounts are not final as the 2021 Dutch corporate income tax return is still in draft. The 2020 Dutch corporate income tax return is final and has been filed.

As a result of the Dutch corporate income tax law, tax loss carryforwards are not subject to a time limitation and remain available for offset indefinitely. Actual offset of these losses is however limited to 50% of the taxable amount that exceeds EUR 1 million (previously losses carry forward were subject to a time limitation of six years whereas losses from 2018 and prior years were subject to a time limitation of nine years – all losses that were still available for offset on 1 January 2022 became available for offset indefinitely).


(in thousands)	Loss per year
2017	$	883
2018		2,823
2019		1,110
2020		—
2021		3,718
	$	8,534

In order to promote innovative technology development activities and investments in new technologies, a

corporate income tax incentive has been introduced in Dutch tax law called the “Innovation Box.” The effective rate for Innovation Box profits is 9%. Lava Therapeutics N.V. has applied for the Innovation Box and its request is currently under final review with the Dutch Tax Authorities. In the 2019, 2020 and 2021 tax

returns an amount of $8.3 million, $15.5 million and $36 million, respectively, of IP development costs were capitalized for tax purposes. In total, $59.8 million of IP development costs was capitalized. This amount can fiscally be offset against future income derived from this IP.

On the basis of the 2021 annual accounts according to IFRS, there are accounting-to-tax differences of $4.2 million. These differences primarily relate to non-deductible share-based payment expenses. Other differences relate to the IFRS 16 lease amounts and expenses which were treated as non-deductible for Dutch corporate income tax purposes and other non-deductible mixed expenses.

Up to and including 2021, deferred income tax assets and liabilities are only recognized for temporary differences in relation to the IFRS 16 lease assets and liabilities.

Deferred income tax assets can also be recognized for tax losses to the extent that the realization of the related tax benefit through future taxable profits is probable. The Company recognizes deferred tax assets arising from unused tax losses or tax credits only to the extent there is convincing other evidence that sufficient taxable profit will be available against which the unused tax losses or unused tax credits can be utilized by the Company. Management concluded that there is not sufficient probability as per IAS 12, Income Taxes, that there will be future taxable profits available in the foreseeable future against which the unused tax losses can be used; therefore, a deferred tax asset has not been recognized.

The statute of limitation in the Netherlands is five years, starting from the day after the end of the tax year and any extensions granted for filing the corporate income tax returns. The tax authorities are allowed to audit years for which a final assessment has already been imposed. Since inception was in 2016, all tax years are currently open for an audit by the Dutch tax authorities.

United States

A tax charge was recognized during the reporting periods due to the U.S. profitable position. The activities of LAVA Therapeutics, Inc. are limited and regard only to the CEO, CFO and CMO for LAVA Therapeutics N.V. and related staff who are domiciled in the U.S. The remuneration of LAVA Therapeutics, Inc. is based on the costs incurred for the services rendered including a profit mark-up.

Earnings per share (EPS)

12 Months Ended

Dec. 31, 2021

Earnings per share (EPS)

Earnings per share (EPS)

10. Earnings per share (EPS)

Basic EPS is calculated by dividing the profit/(loss) for the period attributable to common equity holders of the parent by the weighted average number of common shares outstanding during the period.

Diluted EPS is calculated by dividing the profit/(loss) attributable to common equity holders of the parent (after adjusting for the effect of dilution) by the weighted average number of common shares outstanding after adjustments for the effects of all dilutive potential common shares.

At December 31, 2021, 2020 and 2019, outstanding share-based awards were excluded from the diluted weighted average number of common shares calculation because their effect would have been anti-dilutive.

The following table reflects the loss and share data used in the basic and diluted EPS calculations:


	For the Year Ended December 31,
(in thousands, except for share and per share amounts)	2021		2020		2019
Loss for the year	$	(45,347)	$	(15,506)	$	(9,687)
Weighted average number of common shares		19,758,169		399,126		447,525
Basic and diluted loss per share	$	(2.30)	$	(38.85)	$	(21.65)

Property and equipment

12 Months Ended

Dec. 31, 2021

Property and equipment

Property and equipment

11. Property and equipment

Movements in property and equipment were as follows:


	Building		Laboratory		Office		ICT
(in thousands)	improvements		equipment		equipment		equipment		Total
Cost
Balance at January 1, 2020	$	40	$	687	$	31	$	76	$	834
Additions		65		378		5		54		502
Foreign currency translation adjustment		7		97		2		9		115
Balance at December 31, 2020		112		1,162		38		139		1,451
Additions		20		679		—		65		764
Foreign currency translation adjustment		(9)		(117)		(2)		(12)		(140)
Balance at December 31, 2021	$	123	$	1,724	$	36	$	192	$	2,075
Accumulated depreciation
Balance at January 1, 2020	$	1	$	88	$	3	$	9	$	101
Charge for the year		6		182		7		18		213
Foreign currency translation adjustment		1		20		1		2		24
Balance at December 31, 2020		8		290		11		29		338
Charge for the year		12		280		8		31		331
Foreign currency translation adjustment		(1)		(32)		(3)		(3)		(39)
Balance at December 31, 2021	$	19	$	538	$	16	$	57	$	630
Carrying amounts
Property and equipment, net at December 31, 2020	$	104	$	872	$	27	$	110	$	1,113
Property and equipment, net at December 31, 2021	$	104	$	1,186	$	20	$	135	$	1,445

Leases

12 Months Ended

Dec. 31, 2021

Leases

Leases

12. Leases

The following table provides information about the Company’s right-of-use assets:


(in thousands)
Balance at January 1, 2020	$	414
Additions		182
Depreciation charges		(251)
Foreign currency exchange difference		37
Balance at December 31, 2020		382
Additions		382
Depreciation charges		(227)
Foreign currency exchange difference		(36)
Balance at December 31, 2021	$	501

The following table provides information about the maturities of the Company’s lease liabilities at December 31, 2021:


(in thousands)
2022	$	327
2023		193
2024		129
2025		43
Total lease commitments		692
Less: imputed lease interest		(111)
Total lease liabilities	$	581
Current portion	$	261
Non-current portion	$	320

The average incremental borrowing rate applied to the lease liabilities was 15.78% and 15.6% during the years ended December 31, 2021 and 2020.

Cash outflows related to leases during the years ended December 31, 2021, 2020 and 2019 were $0.3 million, $0.2 million and $0.2 million, respectively.

Investments

12 Months Ended

Dec. 31, 2021

Investments

Investments in Debt Securities

13. Investments

All investments in debt securities have investment-grade credit quality indicators as published by Moody’s and Standard & Poor’s (S&P). As of December 31, 2021, our investments in debt securities had credit quality indicators ranging from A3 – AAA as published by Moody’s, and A- – AAA as published by S&P. Given the high-quality ratings of these investments in debt securities, we have not recorded an allowance for credit losses as of December 31, 2021.

Cash and cash equivalents

12 Months Ended

Dec. 31, 2021

Cash and cash equivalent

Cash and cash equivalents

14. Cash and cash equivalents


		As of December 31,			As of January 1,
(in thousands)		2021		2020	2020
Short-term deposits	$	76,504	$	1,228	$	112
Current bank accounts		14,365		14,590		7,226
	$	90,869	$	15,818	$	7,338

Short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Company, and earn interest at the respective short-term deposit rates. Information about the credit risk over cash and cash equivalents is presented in Note 21.

Share capital, share premium and other capital reserves

12 Months Ended

Dec. 31, 2021

Share capital, share premium and other capital reserves

Share capital, share premium and other capital reserves

15. Share capital, share premium and other capital reserves

The following table provides information about the Company’s share capital as of December 31, 2021, 2020 and 2019:


(in thousands, except	Authorized			Issued and fully paid			Additional paid-in capital		Share premium
for share and per	December 31,			December 31,			December 31,		December 31,
share amounts)	2021	2020	2019	2021	2020	2019	2021		2020		2019
Common shares of $0.01 each	—	447,525	447,525	—	281,775	447,525	$	—	$	—	$	—
Preference Series A shares of $0.01 each	—	1,755,845	1,755,845	—	1,037,595	1,755,845		—		722		1,221
Preference Series B shares of $0.01 each	—	3,899,766	3,899,766	—	3,899,766	3,899,766		—		18,340		18,340
Preference Series C shares of $0.01 each	—	4,133,805	—	—	4,133,805	—		—		22,026		—
Preference shares of $0.01 each	—	9,789,416	5,655,611	—	9,071,166	5,655,611		—		41,088		19,561
Preference shares of $0.14 each	45,000,000	—	—	—	—	—		—		—		—
Common shares of $0.14 each	45,000,000	—	—	25,775,538	—	—		192,270		—		—
	90,000,000	10,236,941	6,103,136	25,775,538	9,352,941	6,103,136	$	192,270	$	41,088	$	19,561

Preferred Series Shares

In 2017, the Company issued and sold 1,755,845 Series A Preferred at a price of $0.68 per share for gross proceeds of $1.2 million. The Company incurred minimal issuance costs.

In 2018, the Company issued and sold 3,899,766 Series B Preferred at a price of $4.61 per share for gross proceeds of $17.9 million. The Company incurred minimal issuance costs.

In September 2020, the Company closed an oversubscribed financing of Series C Preferred that resulted in tranche-based commitments of $84.4 million gross and $73.2 million net. In connection with the Series C Preferred financing, the Company agreed to sell the Series C Preferred in three tranches. In connection with the funding of the tranches the Company was obligated to repurchase 1,436,500 shares of Series A preferred of approximately $10.3 million and 331,500 common shares.

On September 15, 2020, the first tranche of gross proceeds of $22.7 million, with $0.6 million of issuance costs and 4,133,805 shares of Series C Preferred, was funded and 718,250 shares amounted to $4.9 million of Series A Preferred were repurchased, resulting in net proceeds of $17.2 million.

On March 17, 2021, the Company effected a 221:1 share split of the Company’s issued and outstanding common shares and a proportional adjustment to the existing conversion ratios for the Company’s convertible preferred shares. The par value per share and authorized common and convertible preferred shares were adjusted as a result of the share split. All common shares and common share per share amounts within the financial statements and notes thereto have been adjusted for all periods presented to give effect to this share split, including reclassifying an amount equal to the change in par value of common shares to additional paid-in capital.

On March 18, 2021, the remaining milestones required to fund the remaining two tranches of the Series C Preferred financing were waived, and the funding of both tranches prior to the completion of the IPO was authorized. The two remaining tranches funded additional net proceeds of $56.6 million in the aggregate, after repurchasing the 718,250 shares of Series A Preferred and 165,750 common shares from one investor.

Automatic Conversion of Preferred Shares – On March 29, 2021, the Company effected an amendment to its Articles of Association, as amended. This amendment eliminated the minimum price per common share for

an underwritten public offering that would result in the automatic conversion of all outstanding Series A, Series B, and Series C preferred shares of the Company.

Common shares

On March 29, 2021, the Company completed an IPO of common shares pursuant to its registration statement on Form F-1, as amended (file 333-253795) under the symbol “LVTX” in the United States on Nasdaq. Pursuant to the registration statement, the Company issued and sold 6,700,000 shares of $0.14 par value common share at a price of $15.00 per share. Net proceeds from the IPO were approximately $89.0 million after deducting underwriting discounts and commissions of $7.0 million and offering costs of $4.5 million.

On April 19, 2021, underwriters of the Company’s IPO consummated the exercise of their option to purchase 425,712 common shares from the Company at the price of $15.00 per share resulting in additional IPO proceeds to the Company of $5.9 million after deducting underwriting discounts and commissions of $0.4 million.

On June 2, 2021, the Company issued 235,664 common shares to the VUmc representing the $3.7 million payable in accordance with the VUmc agreement.

The following table provides information about the Company’s major shareholders on a non-diluted basis:


	As of December 31,
	2021		2020
Gilde Healthcare	21.0	%	26.0	%
Versant Venture Capital VI, L.P.	17.8	%	26.0	%
Novo Holdings A/S	12.9	%	9.4	%
Redmile Biopharma Investments	10.8	%	5.7	%
Sanofi Foreign Participations B.V.	7.4	%	5.7	%
Ysios Capital Partners, SGECR,S.A.U.	6.2	%	7.2	%
Other shareholders	23.9	%	20.0	%
	100.0	%	100.0	%

Borrowings

12 Months Ended

Dec. 31, 2021

Borrowings.

Borrowings

16. Borrowings

In 2019, the Company applied for, and received a $5.5 million Innovation Credit (the “Credit”) from Rijksdienst voor Ondernemend Nederland (RVO). The Credit contributes to the development of one of the Company’s main projects, and certain assets of that project are pledged as a guarantee.

Borrowings under the Credit, which bear interest at 10.0%, will be received in quarterly installments through 2023, based on the level of the underlying cost base of the project in each period. The repayment of principal and accrued interest is due on December 31, 2023.

At December 31, 2021 and 2020, the Company had $4.3 million and $3.6 million, respectively in borrowings under the Credit, all of which was classified as long-term, and includes accrued interest.

The Credit contains customary limitations on the Company and its shareholders, including the shareholders of the Company not being permitted to subtract assets (including cash) by means of dividend, interest, or repayment of loans as long as the Credit has not been repaid in full. The Company needs to file a progress report after each of the five reporting periods: March 2020, December 2020, December 2021, October 2022, and July 2023. Based on the progress report, RVO will decide to continue to pay future installments if the following conditions are met:

●

Activities during reporting period were completed successfully

●

Perspective on completion of the project and future commercialization are still good

●

The Company has financed its own contribution in the project sufficiently

At December 31, 2021, the Company was in compliance with all of the terms of the Credit.

Interest expense incurred from the Credit during the years ended December 31, 2021, 2020 and 2019 were $0.3 million, $0.2 million and $0.0 million, respectively.

Trade payables and other

12 Months Ended

Dec. 31, 2021

Trade payables and other.

Trade payables and other

17. Trade payables and other

The Company had accounts payable balances of $2.6 million and $0.9 million as of December 31, 2021 and 2020, respectively. The average credit period on domestic purchases of certain goods is 7-30 days. No interest is charged on the trade payables from the invoice received. Information about the Company’s exposure to currency and liquidity risk in relation to its trade and other payables is included in Note 21.

Working capital

12 Months Ended

Dec. 31, 2021

Working capital

Working capital

18. Working capital

Prepaid expenses and other current assets


	As of December 31,				As of January 1,
(in thousands)	2021		2020		2020
Prepaid project expenses	$	1,499	$	—	$	16
Prepaid other expenses		732		117		46
Prepaid interest on investments		337		—		—
	$	2,568	$	117	$	62

Accrued expenses and other current liabilities


		As of December 31,			As of January 1,
(in thousands)		2021		2020	2020
Research and development external project costs	$	983	$	946	$	414
Professional fees		425		206		210
Other		310		107		14
Personnel-related expenses		161		114		128
Deferred offering costs		—		300		—
	$	1,879	$	1,673	$	766

Share-based compensation

12 Months Ended

Dec. 31, 2021

Share-based compensation

Share-based compensation

19. Share-based compensation

19.1Description of equity incentive plans

In 2018, the Company established the 2018 Stock Option Plan that entitles employees, directors, and consultants providing services to purchase depository receipts for common shares of the Company. Under this plan, holders of vested options are entitled to purchase common shares at the exercise price determined at the date of the grant.

In 2020, the Company established the 2020 U.S. Stock Option Plan that entitles employees, directors and consultants providing services to give the right to acquire a number of common shares. Under this plan, holders of vested options are entitled to purchase common stock at the exercise price determined at the date of the grant.

In March 2021, LAVA Therapeutics N.V. established the 2021 Long-term Incentive Option Plan, as an incentive for all its employees, members of its board of directors and select external consultants. As of March 25, 2021, the 2018 Stock Option Plan and the 2020 U.S. Stock Option Plan ceased to have any future shares available.

Under the option plans, the options granted generally have a maximum term of 10 years and can generally have the following vesting schemes:

●

25% of the options vest on the first anniversary of the vesting commencement date, and the remaining 75% of the options vest in 36 monthly installments for each full month of continuous

service provided by the option holder thereafter, such that 100% of the options shall become vested on the fourth anniversary of the vesting commencement date.

●

the options vest in 48 monthly installments for each full month of continuous service provided by the option holder thereafter, such that 100% of the options shall become vested on the fourth anniversary of the vesting commencement date.

●

the options vest in 12 monthly installments for each full month of continuous service provided by the option holder thereafter, such that 100% of the options shall become vested on the first anniversary of the vesting commencement date.

Share-based options

During 2021 and 2020, the board of directors granted 1,801,088 options and 1,463,462 options, respectively, to employees and non-employees.

The following table provides information about share-based awards as of December 31, 2021 and 2020:


	2018 Stock Option Plan			2020 U.S. Stock Option Plan			2021 Long-term Incentive Option Plan
			Weighted			Weighted			Weighted
		Weighted	average		Weighted	average		Weighted	average
	Number	average	remaining		average	remaining		average	remaining
	of	exercise	contractual	Number of	exercise	contractual	Number of	exercise	contractual
	options	price $	term (yrs)	options	price $	term (yrs)	options	price $	term (yrs)
Outstanding at January 1, 2020	226,083	0.01	*()**	—	—		—	—	—
Granted	394,264	0.01		1,069,198	2.76		—	—
Exercised	—	—		—	—		—	—
Forfeited	—	—		—	—		—	—
Outstanding at December 31, 2020	620,347	0.01	*()**	1,069,198	2.76	9.50	—	—	—
Granted	—	—		493,938	12.69		1,307,150	6.03
Exercised	—	—		—	—		—	—
Forfeited	—	—		—	—		—	—
Outstanding at December 31, 2021	620,347	0.01	*()**	1,563,136	5.90	8.90	1,307,150	6.03	9.90
Exercisable at December 31, 2021	216,377			301,676			—
(*) contract term does not have fixed end date

As of December 31, 2021 outstanding options had exercise prices ranging from $0.01 to $15.00.

19.2Measurement of fair values

The fair value of the equity-settled employee share options has been measured using the Black-Scholes formula. Service and non-market performance conditions attached to the transactions were not taken into account in measuring fair value.

The assumptions used in the measurement of the fair values and the weighted average fair value of the share options granted during the years ended on December 31, 2021, 2020 and 2019:


	December 31, 2021				December 31, 2020		December 31, 2019
	NL		US		NL		NL
Expected annual volatility		80.1%		80.1%		75.5% - 90.0%		90.0%
Expected life, years		6.08		6.08		3.92		3.92
Fair value of the common share	$	3.42 - 5.23	$	3.12 - 8.71	$	2.10 - 2.76	$	1.86
Exercise price	$	5.10 - 7.77	$	5.10 - 15.00	$	0	$	0
Dividend yield		—		—		—		—
Risk-free interest rate		(0.30%) - (0.53%)		0.94% - 1.34%		(0.62%)		(0.44%) - (0.76%)
Weighted average grant date fair value	$	3.61	$	5.95	$	2.71	$	1.86

In 2021, options were granted with a contractual exercise price in both EUR and USD. In 2020, all options were granted with a contractual exercise price in EUR. Since the Company was a private company until March 2021, company-specific historical and implied volatility information is not available. Expected volatility is therefore estimated based on the observed daily share price returns of publicly traded peer companies over a historic period equal to the period for which expected volatility is estimated. The group of comparable listed companies are publicly traded entities active in the business of developing antibody-based therapeutics, treatments and drugs and are selected taking into consideration the availability of meaningful trading data history and market capitalization. The Company will continue to use this method for calculation of expected volatility data until sufficient historical market data is available for estimating the volatility of our common shares.

Valuation of common shares

As of our IPO in March 2021, the fair value of the common shares is determined by the market value of our shares on the Nasdaq Global Select Market under the symbol “LVTX.”

Prior to our IPO, the fair value of the common shares was determined by the Company’s management board and supervisory board and took into account the most recently available valuation of common shares performed by an independent valuation firm and the assessment of additional objective and subjective factors the Company believed were relevant and which may have changed from the date of the most recent valuation through the date of the grant.

The Company’s management board and supervisory board considered numerous objective and subjective factors to determine their best estimate of the fair value of our common shares as of each grant date, including:


•		the progress of our research and development programs;


•		achievement of enterprise milestones, including entering into collaboration and licensing agreements, as well as funding milestones;


•		contemporaneous third-party valuations of our common shares for our most recent share issuances;


•		our need for future financing to fund operations;


•		the rights and preferences of our preference shares and our preference shares relative to our common shares;


•		the likelihood of achieving a discrete liquidity event, such as a sale of our Company or an initial public offering given prevailing market conditions; and


•		external market and economic conditions impacting our industry sector.

In determining the fair values of the common shares as of each grant date, three generally accepted approaches were considered: income approach, market approach and cost approach. In addition, the guidance prescribed by the American Institute of Certified Public Accounts Audit and Accounting Practice Aid, Valuation of Privately-Held-Company Equity Securities Issued as Compensation had been considered.

The “prior sale of company stock” method, a form of the market approach, had been applied to estimate the total enterprise value. The prior sale of company stock method considers any prior arm’s length sales of the Company’s equity securities. Considerations factored into the analysis included: the type and amount of equity sold, the estimated volatility, the estimated time to liquidity, the risk-free rate, the timing compared to the common shares valuation date and the financial condition and structure of the Company at the time of the sale. As such, the value per share had been benchmarked to the external transactions of Company stock and external financing rounds. For determining the value of the Company’s shares, the prior sale of company stock method had been relied on to estimate the total value of the Company’s equity. Throughout this period, financing rounds were held, which resulted in the issuance of preferred shares. The preferred shares were transacted with numerous existing and new investors, and therefore the pricing in these financing rounds was considered a strong indication of fair value.

Given that there were multiple classes of equity, the Option Pricing Method (OPM) had been applied in order to allocate equity to the various equity classes. The OPM treats securities as call options on the enterprise’s equity value, with exercise prices based on the liquidation preference and conversion features of preferred stock and strike prices of options. An incremental discount for lack of marketability (DLOM) was applied with a range from 10% to 25%, corresponding to the time to exit to reflect the increased risk arising from the inability to readily sell the shares. Under this method, the cost of the put option, which can hedge the price change before the privately held shares can be sold, was considered as the basis to determine the DLOM.

The related share-based compensation expenses for the years ended December 31, 2021, 2020 and 2019 were $4.3 million, $0.6 million and $0.2 million, respectively, as referenced in notes 5 and 6.

Related parties

12 Months Ended

Dec. 31, 2021

Related parties

Related parties

20. Related parties

Key management compensation

Key management includes members of the Company’s executive committee and the board of directors. The compensation paid or payable to key management for the Board and employee services includes their participation in share-based compensation arrangements. The compensation paid to these individuals are presented below for the years ended December 31, 2021, 2020 and 2019. The disclosure amounts are based on the expense recognized in the consolidated statements of loss and other comprehensive loss.


	For the Year Ended
	December 31,
(in thousands)	2021		2020		2019
Key management compensation
Short term employee benefits	$	3,099	$	1,518	$	1,314
Share-based payments		2,924		372		322
Post-employment benefits		92		74		64
	$	6,115	$	1,964	$	1,700

Director and shareholder compensation

A member of the Company’s board of directors and existing shareholder receive consultancy fees. The compensation paid to this individual is presented below for the years ended December 31, 2021, 2020 and 2019. At December 31, 2021, 2020 and 2019, related party expenses of less than $0.1 million, respectively, were reported in the Company’s trade payables and other balances. The disclosure amounts are based on the expense recognized in the consolidated statements of loss and other comprehensive loss.


	For the Year Ended
	December 31,
(in thousands)	2021		2020		2019
Director and shareholder compensation
Board fees	$	227	$	—	$	—
Consultancy fees		20		55		91
	$	247	$	55	$	91

Financial instruments, risk management and capital management

12 Months Ended

Dec. 31, 2021

Financial instruments, risk management and capital management

Financial instruments, risk management and capital management

21. Financial instruments, risk management and capital management

21.1Financial assets and financial liabilities

The following table shows the carrying amounts of financial assets and financial liabilities. The Company does not hold any financial assets and financial liabilities other than those measured at amortized cost. Management assessed that the carrying values of the Company’s financial assets and financial liabilities measured at amortized cost are a reasonable approximation of their fair values.

21.2Financial risk management


		As of December 31,			As of January 1,
(in thousands)	2021		2020		2020
Financial assets measured at amortized cost
Cash and cash equivalents (note 14)	$	90,869	$	15,818	$	7,338
Investments (note 13)		42,334		—		—
Other non-current assets and security deposits		796		769		30
Receivables and other		363		1,140		69
Total financial assets	$	134,362	$	17,727	$	7,437

Financial liabilities measured at amortized cost
Borrowings (note 16)	$	4,284	$	3,604	$	1,272
Trade payables and other (note 17)		2,553		934		422
Accrued expenses and other current liabilities (note 18)		1,879		1,673		766
Lease liabilities (note 12)		581		478		493
Total financial liabilities	$	9,297	$	6,689	$	2,953

The Company is exposed to a variety of financial risks: market risk and credit risk. The Company’s overall risk management program seeks to minimize potential adverse effects of these financial risk factors on the Company’s financial performance.

21.2.1Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk, which mostly impacts the Company, comprises two types of risk: interest rate risk and currency risk. Financial instruments affected by market risk include cash, cash equivalents, investments, accounts receivable and trade and other payables. All of these financial instruments generally are short term in nature with maturities and settlement dates between one and nine months. A 1% fluctuation

The Company does not enter into any derivative financial instruments to manage its exposure to foreign currency risk and interest rate risk. Due to the conservative nature of our investment portfolio and other financial instruments, we do not believe an immediate 1.0% increase in interest rates or currency rates would have a material effect on the fair market value of our portfolio, and accordingly we do not expect a sudden change in market interest rates to affect materially our operating results or cash flows.

21.2.2Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily accounts receivable) and from its cash and cash equivalents held with banks.

Cash and cash equivalents

The Company held cash and cash equivalents at December 31, 2021 and 2020 of $90.9 million and $15.8 million, respectively. For the years ending December 31, 2021 and 2020, the Company held 100% of its cash and cash equivalents with large, well-known institutions.

21.3Capital management

The Company manages its capital to ensure that the Company will be able to continue as a going concern while the maximizing return to shareholders through the optimization of the debt and equity balance.

The capital structure of the Company consists of net debt (borrowings as detailed in Note 16 offset by cash and cash equivalents) and equity (as detailed in the consolidated statements of financial position).

In order to achieve this overall objective, the Company’s capital management, among other things, aims to ensure that it meets financial covenants attached to the borrowings that define capital structure requirements.

No changes were made in the objectives, policies, or processes for managing capital during the year ended December 31, 2021.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies

Commitments and Contingencies

22. Commitments and Contingencies

Lease contract

In December 2021, the Company entered into a lease contract for laboratory and office space in Utrecht with a commencement date in November 2022. The lease agreement has an end date on March 31, 2026 and includes cancellation provisions. The total lease commitment under the agreement amounts to $2.3 million.

Legal proceedings

From time to time, the Company is involved in legal proceedings and adjudications generally incidental to its normal business activities, none of which has had, individually or in the aggregate, a material adverse impact on the Company. In accordance with IFRS, the Company accrues for loss contingencies when a present obligation (legal or constructive) has arisen as a result of a past event, payment is probable, and the amount can be estimated reliably. These estimates are based on an analysis made by internal and external legal counsel considering information known at the time. Legal costs in connection with loss contingencies are expensed as incurred. The Company believes that the resolution of all current and potential legal matters will not have a material adverse impact on its financial position or results of operations.

Contingent liabilities

In January 2017, we entered into VUmc Agreement, as amended. Under the VUmc Agreement, VUmc granted us an exclusive, although non-exclusive with respect to certain intangible know-how, worldwide, sublicensable license under certain patent rights and know-how owned by VUmc, effectively including research and other services provided in collaboration by VUmc since 2017 to develop, make, and sell licensed products. VUmc retains the right to use the patent rights and know-how for solely non-commercial

research and educational purposes, but it may not conduct such work with respect to any product that is directed to a specified target for a specified time period.

We are obligated to pay VUmc sub to low single-digit tiered royalties on net sales of products covered by claims included in the assigned patent rights. Royalties are payable on a country-by-country basis for a royalty term that expires upon the expiration of the last valid claim in the assigned patent rights in such country that would be infringed by the use, manufacture, or sale of a product in such country in the absence of us having rights to such patent right. In connection with our IPO, we issued to VUmc 235,664 of our common share and paid $0.3 million in cash. On each of the first and second anniversary of our IPO, we are required to pay $5.0 million. Such payment shall be made in cash or common shares, at the election of the Company, valued using the closing price of common shares on the date two trading days prior to the respective anniversary of our IPO. The Company and VUmc have been collaborating since 2017 and VUmc makes available certain employees to the Company who perform research activities for the benefit of the Company. In accordance with IFRS, these obligations are reflected in the accompanying consolidated statements of financial position.

Summary of significant accounting policies (Policies)

12 Months Ended

Dec. 31, 2021

Summary of significant accounting policies

Basis of preparation

(a)Basis of preparation

The consolidated financial statements of the Company have been prepared in accordance with and comply with IFRS as issued by the IASB.

The consolidated financial statements of the Company have been prepared on a historical cost basis.

Going concern

COVID-19

●	availability of supplies and equipment for our laboratories;

●	availability of staff;

●	start dates and recruitment in our clinical trials due to risks of opening and available resources at clinical sites;

●	availability of study drug; and

●	fundraising and access to the capital markets.

Basis of consolidation

(b)Basis of consolidation

Foreign currency

c)Foreign currency

The results and financial position of all of the Company entities that have functional currency different from the presentation currency are translated into USD as follows:

●	Assets and liabilities are translated at the closing rate at the reporting date;

●	Revenue, deferred revenue and components of equity are translated using the rate at the date the relevant event occurred; and

●	Income and expenses for each statement of loss and other comprehensive loss are translated at average exchange rates.

Segment information

d)Segment information

Cash flow statement

e)Cash flow statement

The cash flow statement has been prepared using the indirect method. The cash and cash equivalents disclosed in the cash flow statement consisted of cash at banks.

Research and development expenses

f)Research and development expenses

General and administrative expenses

g)General and administrative expenses

Share-based awards

h)Share-based awards

a)	the exercise price of the option;

b)	the expected life of the option;

c)	the current value of the underlying shares;

d)	the expected volatility of the share price;

e)	the dividends expected on the shares; and

f)	the risk-free interest rate for the life of the option.

Employee benefits

i)Employee benefits

once the contributions have been paid. The Company’s post-employment schemes do not include any defined benefit plans.

Income taxes

j)Income taxes

●	temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss;

●	temporary differences related to investments in subsidiaries, associates, and joint arrangements to the extent that the Company is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

●	taxable temporary differences arising on the initial recognition of goodwill.

Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date.

Cash and cash equivalents

k)Cash and cash equivalents

For the purposes of the consolidated statements of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts.

Investments

l)Investments

cost on our consolidated statements of financial position, with the amortization of bond premiums or discounts and earned interest income recorded in our consolidated statements of loss.

Property and equipment

m)Property and equipment

Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows:


Building improvements		10
Laboratory equipment		5
Office equipment		5
Information and communication equipment (ICT)		5

Management reviews the carrying amount of property, plant, and equipment for impairment when there is an indication that the carrying amount may exceed the expected recoverable amount.

Impairment of long-lived assets

n)Impairment of long-lived assets

Provisions

o)Provisions

Value added tax

p)Value added tax

The net amount of the VAT recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the consolidated statements of financial position.

Financial instruments

q)Financial instruments

(i)

Financial assets

(ii)

Financial liabilities

The Company’s financial liabilities are comprised of trade and other payables, lease liabilities, and borrowings. All financial liabilities are recognized initially at fair value.

Payables and borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

Financial liabilities are derecognized when the obligation under the liability is discharged, cancelled, or expires.

(iii)

Fair value measurements

Leases

r)Leases

The Company is party to lease contracts relating to laboratory and office facilities located in the Netherlands and the U.S.

(i)

Right-of-use assets

(ii)

Lease liabilities

Corporate and Company information (Tables)

12 Months Ended

Dec. 31, 2021

Corporate and Company information

Schedule of percentage of equity interest in subsidiary


			% of equity interest
Name	Legal seat	Country of incorporation	2021		2020
Lava Therapeutics N.V.	Utrecht	The Netherlands	100	%	100	%
Lava Therapeutics INC.	Delaware	United States of America	100	%	100	%

Summary of significant accounting policies (Tables)

12 Months Ended

Dec. 31, 2021

Summary of significant accounting policies

Schedule of estimated useful lives


Building improvements		10
Laboratory equipment		5
Office equipment		5
Information and communication equipment (ICT)		5

Revenue (Tables)

12 Months Ended

Dec. 31, 2021

Revenue

Schedule of changes in deferred revenue


(in thousands)
Balance at January 1, 2020	$	—
Deferral of revenue		(8,000)
Recognized during the period		2,500
Foreign currency translation difference		(676)
Balance at December 31, 2020		(6,175)
Deferral of revenue		—
Recognized during the period		4,000
Foreign currency translation difference		648
Balance at December 31, 2021	$	(1,527)

Research and development expenses (Tables)

12 Months Ended

Dec. 31, 2021

Research and development expenses

Schedule of research and development expenses


	For the Year Ended December 31,
(in thousands)	2021		2020		2019
VUmc license expenses	$	14,357	$	203	$	—
Pre-clinical and clinical trial expenses		14,188		11,325		5,118
Personnel-related expenses		4,955		2,276		1,360
Research and development activities expenses		1,843		1,022		1,624
Share-based compensation expense		1,036		232		181
Facilities and other research and development expenses		814		643		64
	$	37,193	$	15,701	$	8,347

General and administrative expenses (Tables)

12 Months Ended

Dec. 31, 2021

General and administrative expenses

Schedule of general and administrative expenses


	For the Year Ended December 31,
(in thousands)	2021		2020		2019
Personnel-related expenses	$	3,800	$	1,474	$	477
Share-based compensation expense		3,261		326		11
Professional and consultant fees		2,593		683		674
Insurance, facilities, fees and other related costs		2,506		236		74
	$	12,160	$	2,719	$	1,236

Interest expense, net (Tables)

12 Months Ended

Dec. 31, 2021

Interest expense, net

Schedule of interest expenses


	For the Year Ended December 31,
(in thousands)	2021			2020		2019
Interest expense on borrowings and deposits, net	$	564	$	253	$	13
Interest expense related to leases		61		89		73
	$	625	$	342	$	86

Taxation (Tables)

12 Months Ended

Dec. 31, 2021

Taxation

Schedule of tax-losses incurred


(in thousands)	Loss per year
2017	$	883
2018		2,823
2019		1,110
2020		—
2021		3,718
	$	8,534

Earnings per share (EPS) (Tables)

12 Months Ended

Dec. 31, 2021

Earnings per share (EPS)

Schedule of loss and share data used in the basic and diluted EPS calculations


	For the Year Ended December 31,
(in thousands, except for share and per share amounts)	2021		2020		2019
Loss for the year	$	(45,347)	$	(15,506)	$	(9,687)
Weighted average number of common shares		19,758,169		399,126		447,525
Basic and diluted loss per share	$	(2.30)	$	(38.85)	$	(21.65)

Property and equipment (Tables)

12 Months Ended

Dec. 31, 2021

Property and equipment

Schedule of movements in property and equipment


	Building		Laboratory		Office		ICT
(in thousands)	improvements		equipment		equipment		equipment		Total
Cost
Balance at January 1, 2020	$	40	$	687	$	31	$	76	$	834
Additions		65		378		5		54		502
Foreign currency translation adjustment		7		97		2		9		115
Balance at December 31, 2020		112		1,162		38		139		1,451
Additions		20		679		—		65		764
Foreign currency translation adjustment		(9)		(117)		(2)		(12)		(140)
Balance at December 31, 2021	$	123	$	1,724	$	36	$	192	$	2,075
Accumulated depreciation
Balance at January 1, 2020	$	1	$	88	$	3	$	9	$	101
Charge for the year		6		182		7		18		213
Foreign currency translation adjustment		1		20		1		2		24
Balance at December 31, 2020		8		290		11		29		338
Charge for the year		12		280		8		31		331
Foreign currency translation adjustment		(1)		(32)		(3)		(3)		(39)
Balance at December 31, 2021	$	19	$	538	$	16	$	57	$	630
Carrying amounts
Property and equipment, net at December 31, 2020	$	104	$	872	$	27	$	110	$	1,113
Property and equipment, net at December 31, 2021	$	104	$	1,186	$	20	$	135	$	1,445

Leases (Tables)

12 Months Ended

Dec. 31, 2021

Leases

Schedule of right-of-use assets


(in thousands)
Balance at January 1, 2020	$	414
Additions		182
Depreciation charges		(251)
Foreign currency exchange difference		37
Balance at December 31, 2020		382
Additions		382
Depreciation charges		(227)
Foreign currency exchange difference		(36)
Balance at December 31, 2021	$	501

Schedule of maturities of lease liabilities


(in thousands)
2022	$	327
2023		193
2024		129
2025		43
Total lease commitments		692
Less: imputed lease interest		(111)
Total lease liabilities	$	581
Current portion	$	261
Non-current portion	$	320

Cash and cash equivalents (Tables)

12 Months Ended

Dec. 31, 2021

Cash and cash equivalent

Schedule of cash and cash equivalents


		As of December 31,			As of January 1,
(in thousands)		2021		2020	2020
Short-term deposits	$	76,504	$	1,228	$	112
Current bank accounts		14,365		14,590		7,226
	$	90,869	$	15,818	$	7,338

Share capital, share premium and other capital reserves (Tables)

12 Months Ended

Dec. 31, 2021

Share capital, share premium and other capital reserves

Schedule of share capital

The following table provides information about the Company’s share capital as of December 31, 2021, 2020 and 2019:


(in thousands, except	Authorized			Issued and fully paid			Additional paid-in capital		Share premium
for share and per	December 31,			December 31,			December 31,		December 31,
share amounts)	2021	2020	2019	2021	2020	2019	2021		2020		2019
Common shares of $0.01 each	—	447,525	447,525	—	281,775	447,525	$	—	$	—	$	—
Preference Series A shares of $0.01 each	—	1,755,845	1,755,845	—	1,037,595	1,755,845		—		722		1,221
Preference Series B shares of $0.01 each	—	3,899,766	3,899,766	—	3,899,766	3,899,766		—		18,340		18,340
Preference Series C shares of $0.01 each	—	4,133,805	—	—	4,133,805	—		—		22,026		—
Preference shares of $0.01 each	—	9,789,416	5,655,611	—	9,071,166	5,655,611		—		41,088		19,561
Preference shares of $0.14 each	45,000,000	—	—	—	—	—		—		—		—
Common shares of $0.14 each	45,000,000	—	—	25,775,538	—	—		192,270		—		—
	90,000,000	10,236,941	6,103,136	25,775,538	9,352,941	6,103,136	$	192,270	$	41,088	$	19,561

Schedule of major shareholders on a non-diluted basis


	As of December 31,
	2021		2020
Gilde Healthcare	21.0	%	26.0	%
Versant Venture Capital VI, L.P.	17.8	%	26.0	%
Novo Holdings A/S	12.9	%	9.4	%
Redmile Biopharma Investments	10.8	%	5.7	%
Sanofi Foreign Participations B.V.	7.4	%	5.7	%
Ysios Capital Partners, SGECR,S.A.U.	6.2	%	7.2	%
Other shareholders	23.9	%	20.0	%
	100.0	%	100.0	%

Working capital (Tables)

12 Months Ended

Dec. 31, 2021

Working capital

Schedule of prepaid expenses and other current assets


	As of December 31,				As of January 1,
(in thousands)	2021		2020		2020
Prepaid project expenses	$	1,499	$	—	$	16
Prepaid other expenses		732		117		46
Prepaid interest on investments		337		—		—
	$	2,568	$	117	$	62

Schedule of accrued expenses and other current liabilities


		As of December 31,			As of January 1,
(in thousands)		2021		2020	2020
Research and development external project costs	$	983	$	946	$	414
Professional fees		425		206		210
Other		310		107		14
Personnel-related expenses		161		114		128
Deferred offering costs		—		300		—
	$	1,879	$	1,673	$	766

Share-based compensation (Tables)

12 Months Ended

Dec. 31, 2021

Share-based compensation

Schedule of information about share-based awards

The following table provides information about share-based awards as of December 31, 2021 and 2020:


	2018 Stock Option Plan			2020 U.S. Stock Option Plan			2021 Long-term Incentive Option Plan
			Weighted			Weighted			Weighted
		Weighted	average		Weighted	average		Weighted	average
	Number	average	remaining		average	remaining		average	remaining
	of	exercise	contractual	Number of	exercise	contractual	Number of	exercise	contractual
	options	price $	term (yrs)	options	price $	term (yrs)	options	price $	term (yrs)
Outstanding at January 1, 2020	226,083	0.01	*()**	—	—		—	—	—
Granted	394,264	0.01		1,069,198	2.76		—	—
Exercised	—	—		—	—		—	—
Forfeited	—	—		—	—		—	—
Outstanding at December 31, 2020	620,347	0.01	*()**	1,069,198	2.76	9.50	—	—	—
Granted	—	—		493,938	12.69		1,307,150	6.03
Exercised	—	—		—	—		—	—
Forfeited	—	—		—	—		—	—
Outstanding at December 31, 2021	620,347	0.01	*()**	1,563,136	5.90	8.90	1,307,150	6.03	9.90
Exercisable at December 31, 2021	216,377			301,676			—
(*) contract term does not have fixed end date

Schedule of assumptions used in the measurement of the fair values and the weighted average fair value of the share options granted

The assumptions used in the measurement of the fair values and the weighted average fair value of the share options granted during the years ended on December 31, 2021, 2020 and 2019:


	December 31, 2021				December 31, 2020		December 31, 2019
	NL		US		NL		NL
Expected annual volatility		80.1%		80.1%		75.5% - 90.0%		90.0%
Expected life, years		6.08		6.08		3.92		3.92
Fair value of the common share	$	3.42 - 5.23	$	3.12 - 8.71	$	2.10 - 2.76	$	1.86
Exercise price	$	5.10 - 7.77	$	5.10 - 15.00	$	0	$	0
Dividend yield		—		—		—		—
Risk-free interest rate		(0.30%) - (0.53%)		0.94% - 1.34%		(0.62%)		(0.44%) - (0.76%)
Weighted average grant date fair value	$	3.61	$	5.95	$	2.71	$	1.86

Related parties (Tables)

12 Months Ended

Dec. 31, 2021

Related parties

Schedule of key management compensation


	For the Year Ended
	December 31,
(in thousands)	2021		2020		2019
Key management compensation
Short term employee benefits	$	3,099	$	1,518	$	1,314
Share-based payments		2,924		372		322
Post-employment benefits		92		74		64
	$	6,115	$	1,964	$	1,700

Schedule of director and shareholder compensation


	For the Year Ended
	December 31,
(in thousands)	2021		2020		2019
Director and shareholder compensation
Board fees	$	227	$	—	$	—
Consultancy fees		20		55		91
	$	247	$	55	$	91

Financial instruments, risk management and capital management (Tables)

12 Months Ended

Dec. 31, 2021

Financial instruments, risk management and capital management

Schedule of financial assets and financial liabilities


		As of December 31,			As of January 1,
(in thousands)	2021		2020		2020
Financial assets measured at amortized cost
Cash and cash equivalents (note 14)	$	90,869	$	15,818	$	7,338
Investments (note 13)		42,334		—		—
Other non-current assets and security deposits		796		769		30
Receivables and other		363		1,140		69
Total financial assets	$	134,362	$	17,727	$	7,437

Financial liabilities measured at amortized cost
Borrowings (note 16)	$	4,284	$	3,604	$	1,272
Trade payables and other (note 17)		2,553		934		422
Accrued expenses and other current liabilities (note 18)		1,879		1,673		766
Lease liabilities (note 12)		581		478		493
Total financial liabilities	$	9,297	$	6,689	$	2,953

Corporate and Company information (Details)	12 Months Ended
Corporate and Company information (Details)	Dec. 31, 2021	Dec. 31, 2020
Lava Therapeutics N.V.
Disclosure of subsidiaries [line items]
Percentage of equity interest	100.00%	100.00%
Lava Therapeutics INC
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary	100.00%	100.00%

Summary of significant accounting policies (Details) $ in Thousands	1 Months Ended	12 Months Ended
	Sep. 30, 2020 USD ($)	Dec. 31, 2021 USD ($) segment	Dec. 31, 2020 USD ($)	Jan. 01, 2020 USD ($)
Property, plant, and equipment
Accumulated deficit		$ (78,733)	$ (33,386)	$ (13,704)
Cash, cash equivalents and investments		133,200
Proceeds from Series C financing, net		$ 61,798	$ 22,025
Number of reportable segment \| segment		1
Series C Preference Shares
Property, plant, and equipment
Proceeds from Series C financing, net	$ 84,400
Proceeds from issuance of shares net of issuance costs	$ 73,200
Building improvements
Property, plant, and equipment
Estimated useful lives		10 years
Laboratory equipment
Property, plant, and equipment
Estimated useful lives		5 years
Office equipment
Property, plant, and equipment
Estimated useful lives		5 years
Information and communication equipment (ICT)
Property, plant, and equipment
Estimated useful lives		5 years

Significant accounting judgments, estimates and assumptions (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Significant accounting judgments, estimates and assumptions
Income tax rate	9.00%	7.00%
General headline rate	25.00%	25.80%

Revenue (Details) - USD ($) $ in Thousands	1 Months Ended		12 Months Ended
Revenue (Details) - USD ($) $ in Thousands	Sep. 30, 2021	May 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Revenue
Research and license revenue			$ 5,000	$ 3,500
Revenue related to upfront payment			4,000	2,500
Revenue related to development milestones			1,000	1,000
Research and license agreement
Revenue
Development milestones payment received	$ 1,000
Janssen Biotech Inc
Revenue
Deferred revenue at beginning of period			(6,175)
Deferral of revenue				(8,000)
Recognized during the period			4,000	2,500
Foreign currency translation difference			648	(676)
Deferred revenue at end of period			$ (1,527)	(6,175)
Development milestones payment received				$ 1,000
Janssen Biotech Inc \| Research and license agreement
Revenue
Non-refundable upfront payment received		$ 8,000
Term of agreement		20 months	4 months
Years of sale for royalties payable			10 years
Deferred revenue at end of period			$ (1,500)

Research and development expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Research and development expenses
VUmc license expenses	$ 14,357	$ 203
Pre-clinical and clinical trial expenses	14,188	11,325	$ 5,118
Personnel-related expenses	4,955	2,276	1,360
Research and development activities expenses	1,843	1,022	1,624
Share-based compensation expense	1,036	232	181
Facilities and other research and development expenses	814	643	64
Total research and development expenses	37,193	15,701	8,347
Government grants	$ 1,700	$ 1,000	$ 600

General and administrative expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
General and administrative expenses
Personnel-related expenses	$ 3,800	$ 1,474	$ 477
Share-based compensation expense	3,261	326	11
Professional and consultant fees	2,593	683	674
Insurance, facilities, fees and other related costs	2,506	236	74
Total general and administrative expenses	$ 12,160	$ 2,719	$ 1,236

Interest expense, net (Details) - USD ($) $ in Thousands	12 Months Ended
Interest expense, net (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Interest expense, net
Interest expense on borrowings and deposits, net	$ 564	$ 253	$ 13
Interest expense related to leases	61	89	73
Interest expense, net	$ 625	$ 342	$ 86

Foreign currency exchange loss, net (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Foreign currency exchange loss, net
Foreign currency exchange loss, net	$ 0.2	$ 0.2	$ 0.0

Taxation (Details) - USD ($)	12 Months Ended
Taxation (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Taxation
Income tax expense	$ (157,000)	$ (43,000)
Tax loss carryforwards	8,534,000
NL
Taxation
Income tax expense	$ 0

- Definition

The aggregate amount included in the determination of profit (loss) for the period in respect of current tax and deferred tax. [Refer: Current tax expense (income); Deferred tax expense (income)]

+ References + Details

Taxation - Tax-losses carry forward (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Taxation
Tax loss carryforwards	$ 8,534
Effective rate for Innovation Box profits	9.00%
Amount of tax returns	$ 36,000	$ 15,500	$ 8,300
IP development costs	59,800
Accounting-to-tax differences
Taxation
Tax differences	4,200
2017
Taxation
Tax loss carryforwards	883
2018
Taxation
Tax loss carryforwards	2,823
2019
Taxation
Tax loss carryforwards	1,110
2021
Taxation
Tax loss carryforwards	$ 3,718

Earnings per share (EPS) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Earnings per share (EPS)
Loss attributable to the parent entity	$ (45,347)	$ (15,506)	$ (9,687)
Weighted average common shares outstanding, basic	19,758,169	399,126	447,525
Weighted average common shares outstanding, diluted	19,758,169	399,126	447,525
Loss per share, basic	$ (2.30)	$ (38.85)	$ (21.65)
Loss per share, diluted	$ (2.28)	$ (38.85)	$ (21.65)

- Definition

The total of income less expenses from continuing and discontinued operations, excluding the components of other comprehensive income. [Refer: Other comprehensive income]

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 7
-IssueDate 2021-01-01
-Paragraph 18
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=7&code=ifrs-tx-2021-en-r&anchor=para_18_b&doctype=Standard
-URIDate 2021-03-24

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 1
-IssueDate 2021-01-01
-Paragraph 24
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=1&code=ifrs-tx-2021-en-r&anchor=para_24_b&doctype=Standard
-URIDate 2021-03-24

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 1
-IssueDate 2021-01-01
-Paragraph 32
-Subparagraph a
-Clause ii
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=1&code=ifrs-tx-2021-en-r&anchor=para_32_a_ii&doctype=Standard
-URIDate 2021-03-24

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2021-01-01
-Paragraph 28
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2021-en-r&anchor=para_28_b&doctype=Standard
-URIDate 2021-03-24

Reference 5: http://www.xbrl.org/2003/role/exampleRef
-Note Effective on first application of IFRS 9
-Name IFRS
-Number 4
-IssueDate 2021-01-01
-Paragraph 39L
-Subparagraph e
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=4&code=ifrs-tx-2021-en-b&anchor=para_39L_e&doctype=Standard
-URIDate 2021-03-24

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2021-01-01
-Paragraph 23
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2021-en-r&anchor=para_23&doctype=Standard
-URIDate 2021-03-24

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Note Effective 2023-01-01
-Name IFRS
-Number 17
-IssueDate 2021-01-01
-Paragraph 113
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=17&code=ifrs-tx-2021-en-r&anchor=para_113_b&doctype=Standard
-URIDate 2021-03-24

Reference 8: http://www.xbrl.org/2003/role/exampleRef
-Name IFRS
-Number 12
-IssueDate 2021-01-01
-Paragraph B10
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=12&code=ifrs-tx-2021-en-r&anchor=para_B10_b&doctype=Appendix&subtype=B
-URIDate 2021-03-24

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 1
-IssueDate 2021-01-01
-Paragraph 106
-Subparagraph d
-Clause i
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2021-en-r&anchor=para_106_d_i&doctype=Standard
-URIDate 2021-03-24

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 1
-IssueDate 2021-01-01
-Paragraph 81A
-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2021-en-r&anchor=para_81A_a&doctype=Standard
-URIDate 2021-03-24

+ Details

Property and equipment (Details) - USD ($) $ in Thousands	12 Months Ended
Property and equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Disclosure of detailed information about property, plant and equipment [line items]
Balance, at beginning of the period	$ 1,113
Balance, at end of the period	1,445	$ 1,113
Gross carrying amount [member]
Disclosure of detailed information about property, plant and equipment [line items]
Balance, at beginning of the period	1,451	834
Additions	764	502
Foreign currency translation adjustment	(140)	115
Balance, at end of the period	2,075	1,451
Accumulated depreciation, amortisation and impairment [member]
Disclosure of detailed information about property, plant and equipment [line items]
Balance, at beginning of the period	(338)	(101)
Foreign currency translation adjustment	39	(24)
Charge for the year	331	213
Balance, at end of the period	(630)	(338)
Building improvements
Disclosure of detailed information about property, plant and equipment [line items]
Balance, at beginning of the period	104
Balance, at end of the period	104	104
Building improvements \| Gross carrying amount [member]
Disclosure of detailed information about property, plant and equipment [line items]
Balance, at beginning of the period	112	40
Additions	20	65
Foreign currency translation adjustment	(9)	7
Balance, at end of the period	123	112
Building improvements \| Accumulated depreciation, amortisation and impairment [member]
Disclosure of detailed information about property, plant and equipment [line items]
Balance, at beginning of the period	(8)	(1)
Foreign currency translation adjustment	1	(1)
Charge for the year	12	6
Balance, at end of the period	(19)	(8)
Laboratory equipment
Disclosure of detailed information about property, plant and equipment [line items]
Balance, at beginning of the period	872
Balance, at end of the period	1,186	872
Laboratory equipment \| Gross carrying amount [member]
Disclosure of detailed information about property, plant and equipment [line items]
Balance, at beginning of the period	1,162	687
Additions	679	378
Foreign currency translation adjustment	(117)	97
Balance, at end of the period	1,724	1,162
Laboratory equipment \| Accumulated depreciation, amortisation and impairment [member]
Disclosure of detailed information about property, plant and equipment [line items]
Balance, at beginning of the period	(290)	(88)
Foreign currency translation adjustment	32	(20)
Charge for the year	280	182
Balance, at end of the period	(538)	(290)
Office equipment
Disclosure of detailed information about property, plant and equipment [line items]
Balance, at beginning of the period	27
Balance, at end of the period	20	27
Office equipment \| Gross carrying amount [member]
Disclosure of detailed information about property, plant and equipment [line items]
Balance, at beginning of the period	38	31
Additions		5
Foreign currency translation adjustment	(2)	2
Balance, at end of the period	36	38
Office equipment \| Accumulated depreciation, amortisation and impairment [member]
Disclosure of detailed information about property, plant and equipment [line items]
Balance, at beginning of the period	(11)	(3)
Foreign currency translation adjustment	3	(1)
Charge for the year	8	7
Balance, at end of the period	(16)	(11)
Information and communication equipment (ICT)
Disclosure of detailed information about property, plant and equipment [line items]
Balance, at beginning of the period	110
Balance, at end of the period	135	110
Information and communication equipment (ICT) \| Gross carrying amount [member]
Disclosure of detailed information about property, plant and equipment [line items]
Balance, at beginning of the period	139	76
Additions	65	54
Foreign currency translation adjustment	(12)	9
Balance, at end of the period	192	139
Information and communication equipment (ICT) \| Accumulated depreciation, amortisation and impairment [member]
Disclosure of detailed information about property, plant and equipment [line items]
Balance, at beginning of the period	(29)	(9)
Foreign currency translation adjustment	3	(2)
Charge for the year	31	18
Balance, at end of the period	$ (57)	$ (29)

Leases (Details) - USD ($) $ in Thousands	12 Months Ended
Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Leases
Balance at beginning	$ 382	$ 414
Additions	382	182
Depreciation charges	(227)	(251)
Foreign currency exchange difference	(36)	37
Balance at Ending	$ 501	$ 382

Leases - Maturities of lease liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Jan. 01, 2020
Disclosure of quantitative information about right-of-use assets [line items]
Total lease commitments	$ 692
Less: imputed lease interest	(111)
Total lease liabilities	581
Current portion	261	$ 207		$ 236
Non-current portion	$ 320	$ 271		$ 257
Average incremental borrowing rate applied to the lease liabilities	15.78%	15.60%
Cash outflows related to leases	$ 300	$ 200	$ 200
2022
Disclosure of quantitative information about right-of-use assets [line items]
Total lease commitments	327
2023
Disclosure of quantitative information about right-of-use assets [line items]
Total lease commitments	193
2024
Disclosure of quantitative information about right-of-use assets [line items]
Total lease commitments	129
2025
Disclosure of quantitative information about right-of-use assets [line items]
Total lease commitments	$ 43

Investments (Details) $ in Millions	Dec. 31, 2021 USD ($)
Carrying value
Disclosure of fair value measurement of assets [line items]
Financial assets	$ 42.3
Fair value
Disclosure of fair value measurement of assets [line items]
Financial assets	$ 42.3

- Definition

The amount of assets that are: (a) cash; (b) an equity instrument of another entity; (c) a contractual right: (i) to receive cash or another financial asset from another entity; or (ii) to exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity; or (d) a contract that will, or may be, settled in the entity’s own equity instruments and is: (i) a non-derivative for which the entity is, or may be, obliged to receive a variable number of the entity’s own equity instruments; or (ii) a derivative that will, or may be, settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments. For this purpose the entity’s own equity instruments do not include puttable financial instruments classified as equity instruments in accordance with paragraphs 16A-16B of IAS 32, instruments that impose on the entity an obligation to deliver to another party a pro rata share of the net assets of the entity only on liquidation and are classified as equity instruments in accordance with paragraphs 16C-16D of IAS 32, or instruments that are contracts for the future receipt or delivery of the entity’s own equity instruments. [Refer: Financial instruments, class [member]; Financial liabilities]

+ References + Details

Cash and cash equivalents (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Jan. 01, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash and cash equivalent
Short-term deposits	$ 76,504	$ 1,228	$ 112
Current bank accounts	14,365	14,590	7,226
Total	$ 90,869	$ 15,818	$ 7,338	$ 7,338	$ 16,002

Share capital, share premium and other capital reserves - Summary (Details) - USD ($) $ / shares in Units, $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Jan. 01, 2020	Dec. 31, 2019
Share capital, share premium and other capital reserves
Authorized	90,000,000	10,236,941		6,103,136
Issued and fully paid	25,775,538	9,352,941		6,103,136
Additional paid in capital	$ 192,270
Share premium		$ 41,088	$ 19,561	$ 19,561
Common share
Share capital, share premium and other capital reserves
Par value	$ 0.14	$ 0.01		$ 0.01
Authorized	45,000,000	447,525		447,525
Issued and fully paid	25,775,538	281,775		447,525
Additional paid in capital	$ 192,270
Series A Preference Shares
Share capital, share premium and other capital reserves
Par value		$ 0.01		$ 0.01
Authorized		1,755,845		1,755,845
Issued and fully paid		1,037,595		1,755,845
Share premium		$ 722		$ 1,221
Series B Preference Shares
Share capital, share premium and other capital reserves
Par value		$ 0.01		$ 0.01
Authorized		3,899,766		3,899,766
Issued and fully paid		3,899,766		3,899,766
Share premium		$ 18,340		$ 18,340
Series C Preference Shares
Share capital, share premium and other capital reserves
Par value		$ 0.01		$ 0.01
Authorized		4,133,805
Issued and fully paid		4,133,805
Share premium		$ 22,026
Preference share
Share capital, share premium and other capital reserves
Par value	$ 0.14	$ 0.01		$ 0.01
Authorized	45,000,000	9,789,416		5,655,611
Issued and fully paid		9,071,166		5,655,611
Share premium		$ 41,088		$ 19,561

Share capital, share premium and other capital reserves - Preference share (Details) $ / shares in Units, $ in Thousands				1 Months Ended	12 Months Ended
	Mar. 18, 2021 USD ($) tranche shares	Mar. 17, 2021	Sep. 15, 2020 USD ($) shares	Sep. 30, 2020 USD ($) tranche shares	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2018 USD ($) $ / shares shares	Dec. 31, 2017 USD ($) $ / shares shares
Share capital, share premium and other capital reserves
Proceeds from Series C financing, net					$ 61,798	$ 22,025
Share split, conversion ratio		221
Tranche one
Share capital, share premium and other capital reserves
Proceeds from issuance of shares net of cost of repurchase of stocks			$ 17,200
Tranche two and three
Share capital, share premium and other capital reserves
Proceeds from issuance of shares net of cost of repurchase of stocks	$ 56,600
Common share
Share capital, share premium and other capital reserves
Number of shares obliged to repurchase \| shares				331,500
Common share \| Tranche two and three
Share capital, share premium and other capital reserves
Number of shares obliged to repurchase \| shares	165,750
Series A Preference Shares
Share capital, share premium and other capital reserves
Shares issued \| shares								1,755,845
Issue price \| $ / shares								$ 0.68
Proceeds from Series C financing, net								$ 1,200
Number of shares obliged to repurchase \| shares				1,436,500
Amount of shares obliged to repurchase				$ 10,300
Number of remaining tranches \| tranche	2
Series A Preference Shares \| Tranche one
Share capital, share premium and other capital reserves
Number of shares obliged to repurchase \| shares			718,250
Amount of shares obliged to repurchase			$ 4,900
Series A Preference Shares \| Tranche two and three
Share capital, share premium and other capital reserves
Number of shares obliged to repurchase \| shares	718,250
Series B Preference Shares
Share capital, share premium and other capital reserves
Shares issued \| shares							3,899,766
Issue price \| $ / shares							$ 4.61
Proceeds from Series C financing, net							$ 17,900
Series C Preference Shares
Share capital, share premium and other capital reserves
Proceeds from Series C financing, net				84,400
Proceeds from issuance of shares net of issuance costs				$ 73,200
Number of tranches \| tranche	2			3
Issuance costs					$ 92	$ 647
Series C Preference Shares \| Tranche one
Share capital, share premium and other capital reserves
Shares issued \| shares			4,133,805
Proceeds from Series C financing, net			$ 22,700
Issuance costs			$ 600

Share capital, share premium and other capital reserves - Common shares (Details) - USD ($) $ / shares in Units, $ in Thousands				12 Months Ended
	Jun. 02, 2021	Apr. 19, 2021	Mar. 29, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Disclosure of classes of share capital [line items]
Proceeds from issue of ordinary shares				$ 94,189
Number of shares issued in lieu of license liability	235,664
Amount of increase (decrease) in lieu of equity license liability	$ 3,700
Common share
Disclosure of classes of share capital [line items]
Par value per share				$ 0.14	$ 0.01	$ 0.01
IPO
Disclosure of classes of share capital [line items]
Share issue related cost				$ 11,500
IPO \| Common share
Disclosure of classes of share capital [line items]
Number of shares issued and sold			6,700,000
Par value per share			$ 0.14
Issue price			$ 15.00
Proceeds from issue of ordinary shares			$ 89,000
Underwriters discount and commission			7,000
Share issue related cost			$ 4,500
Over-Allotment Option \| Common share
Disclosure of classes of share capital [line items]
Number of shares issued and sold		425,712
Issue price		$ 15.00
Proceeds from issue of ordinary shares		$ 5,900
Underwriters discount and commission		$ 400

Share capital, share premium and other capital reserves - Major shareholders (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Share capital, share premium and other capital reserves
Shareholding percentage	100.00%	100.00%
Gilde Healthcare
Share capital, share premium and other capital reserves
Shareholding percentage	21.00%	26.00%
Versant Ventures
Share capital, share premium and other capital reserves
Shareholding percentage	17.80%	26.00%
Novo Holdings A/S
Share capital, share premium and other capital reserves
Shareholding percentage	12.90%	9.40%
Redmile Biopharma Investments
Share capital, share premium and other capital reserves
Shareholding percentage	10.80%	5.70%
Sanofi Foreign Participations B.V.
Share capital, share premium and other capital reserves
Shareholding percentage	7.40%	5.70%
Ysios Capital Partners, SGECR,S.A.U.
Share capital, share premium and other capital reserves
Shareholding percentage	6.20%	7.20%
Other shareholders
Share capital, share premium and other capital reserves
Shareholding percentage	23.90%	20.00%

Borrowings (Details) - USD ($) $ in Thousands	12 Months Ended
Borrowings (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Jan. 01, 2020
Disclosure of detailed information about borrowings [line items]
Long-term borrowings	$ 4,284	$ 3,604		$ 1,272
Interest expense on borrowings and deposits, net	564	253	$ 13
Innovation Credit
Disclosure of detailed information about borrowings [line items]
Long-term borrowings	$ 4,300	3,600
Innovation Credit received			5,500
Stated interest rate	10.00%
Interest expense on borrowings and deposits, net	$ 300	$ 200	$ 0

Trade payables and other (Details) - USD ($) $ in Thousands	12 Months Ended
Trade payables and other (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Jan. 01, 2020
Trade and Other Payables [Line Item]
Trade payables and other	$ 2,553	$ 934	$ 422
Bottom of range
Trade and Other Payables [Line Item]
Average credit period on domestic purchases of certain goods	7 days
Top of range
Trade and Other Payables [Line Item]
Average credit period on domestic purchases of certain goods	30 days

Working capital - Prepaid expenses and other current assets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Jan. 01, 2020
Working capital
Prepaid project expenses	$ 1,499		$ 16
Prepaid other expenses	732	$ 117	46
Prepaid interest on investments	337
Total	$ 2,568	$ 117	$ 62

Working capital - Accrued expenses and other current liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Jan. 01, 2020
Working capital
Research and development external project costs	$ 983	$ 946	$ 414
Professional fees	425	206	210
Other	310	107	14
Personnel-related expenses	161	114	128
Deferred offering costs		300
Total	$ 1,879	$ 1,673	$ 766

Share-based compensation - Number of option and exercise price (Details)	12 Months Ended
	Dec. 31, 2021 USD ($) Option $ / shares	Dec. 31, 2020 Option $ / shares
2018 Stock Option Plan
Share-based compensation
Outstanding at Beginning, Number of options \| Option	620,347	226,083
Granted, Number of options \| Option		394,264
Outstanding at ending, Number of options \| Option	620,347	620,347
Exercisable, Number of options \| Option	216,377
Outstanding at Beginning, Weighted average exercise price	$ 0.01	$ 0.01
Granted, Weighted average exercise price		0.01
Outstanding at ending, Weighted average exercise price	0.01	$ 0.01
2018 Stock Option Plan \| Bottom of range
Share-based compensation
Exercised, Weighted average exercise price	0.01
2018 Stock Option Plan \| Top of range
Share-based compensation
Exercised, Weighted average exercise price	$ 15.00
2020 U.S. Stock Option Plan,
Share-based compensation
Outstanding at Beginning, Number of options \| Option	1,069,198
Granted, Number of options \| Option	493,938	1,069,198
Outstanding at ending, Number of options \| Option	1,563,136	1,069,198
Exercisable, Number of options \| Option	301,676
Outstanding at Beginning, Weighted average exercise price	$ 2.76
Granted, Weighted average exercise price	12.69	$ 2.76
Outstanding at ending, Weighted average exercise price	$ 5.90	$ 2.76
Outstanding, Weighted average remaining contractual term	8 years 10 months 24 days	9 years 6 months
2021 Long-term Incentive Option Plan
Share-based compensation
Granted, Number of options \| $	1,307,150
Outstanding at ending, Number of options \| $	1,307,150
Granted, Weighted average exercise price	$ 6.03
Outstanding at ending, Weighted average exercise price	$ 6.03
Outstanding, Weighted average remaining contractual term	9 years 10 months 24 days

Share-based compensation - Fair value measurement (Details)	12 Months Ended
	Dec. 31, 2021 USD ($) Y $ / shares	Dec. 31, 2020 USD ($) Y $ / shares	Dec. 31, 2019 USD ($) Y $ / shares
NL
Share-based compensation
Expected annual volatility	80.10%		90.00%
Expected life, years \| Y	6.08	3.92	3.92
Fair value of the common share			$ 1.86
Exercise price		$ 0	$ 0
Risk-free interest rate		0.62%
Weighted average grant date fair value \| $	$ 3.61	$ 2.71	$ 1.86
NL \| Bottom of range
Share-based compensation
Expected annual volatility		75.50%
Fair value of the common share	$ 3.42	$ 2.10
Exercise price	$ 5.10
Risk-free interest rate	0.30%		0.44%
NL \| Top of range
Share-based compensation
Expected annual volatility		90.00%
Fair value of the common share	$ 5.23	$ 2.76
Exercise price	$ 7.77
Risk-free interest rate	0.53%		0.76%
US
Share-based compensation
Expected annual volatility	80.10%
Expected life, years \| Y	6.08
Risk-free interest rate	1.34%
Weighted average grant date fair value \| $	$ 5.95
US \| Bottom of range
Share-based compensation
Fair value of the common share	$ 3.12
Exercise price	$ 5.10
Risk-free interest rate	0.94%
US \| Top of range
Share-based compensation
Fair value of the common share	$ 8.71
Exercise price	$ 15.00

Share-based compensation - Narratives (Details) - USD ($)	1 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based compensation
Share-based compensation expenses		$ 4,300,000	$ 600,000	$ 200,000
Bottom of range
Share-based compensation
Incremental discount rate		10.00%
Top of range
Share-based compensation
Option exercisable term (in years)	10 years
Incremental discount rate		25.00%
Vesting schemes two
Share-based compensation
Vesting period	48 months
Vesting schemes three
Share-based compensation
Vesting period	12 months
Director
Share-based compensation
Number of shares granted			1,801,088	1,801,088
Director \| Vesting schemes one
Share-based compensation
Vesting period	36 months
Vesting percentage	25.00%
Vesting percentage of remaining awards	75.00%
Employee and Non-employee
Share-based compensation
Number of shares granted		1,463,462	1,463,462

Related parties - Key management compensation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Related parties
Short term employee benefits	$ 3,099	$ 1,518	$ 1,314
Share-based payments	2,924	372	322
Post-employment benefits	92	74	64
Total key management compensation	$ 6,115	$ 1,964	$ 1,700

Related parties - Director and shareholder compensation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Disclosure of transactions between related parties [line items]
Board fees	$ 227
Consultancy fees	20	$ 55	$ 91
Total director and shareholder compensation	247	55	$ 91
Bottom of range
Disclosure of transactions between related parties [line items]
Related party expenses	$ 100	$ 100

Financial instruments, risk management and capital management (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Jan. 01, 2020	Dec. 31, 2019	Dec. 31, 2018
Financial instruments, risk management and capital management
Cash and cash equivalents	$ 90,869	$ 15,818	$ 7,338	$ 7,338	$ 16,002
Credit risk
Financial instruments, risk management and capital management
Cash and cash equivalents	$ 90,900	$ 15,800
Percentage of cash and cash equivalents held with large, well known institutions	100.00%	100.00%
Market risk
Financial instruments, risk management and capital management
Increase in interest rate or currency rate	1.00%
Financial liabilities measured at amortized cost
Financial instruments, risk management and capital management
Financial liabilities	$ 9,297	$ 6,689	2,953
Financial liabilities measured at amortized cost \| Borrowings
Financial instruments, risk management and capital management
Financial liabilities	4,284	3,604	1,272
Financial liabilities measured at amortized cost \| Trade payables and other
Financial instruments, risk management and capital management
Financial liabilities	2,553	934	422
Financial liabilities measured at amortized cost \| Accrued expenses and other current liabilities
Financial instruments, risk management and capital management
Financial liabilities	1,879	1,673	766
Financial liabilities measured at amortized cost \| Lease liabilities
Financial instruments, risk management and capital management
Financial liabilities	581	478	493
Financial assets measured at amortized cost
Financial instruments, risk management and capital management
Financial assets	134,362	17,727	7,437
Financial assets measured at amortized cost \| Cash and cash equivalents
Financial instruments, risk management and capital management
Financial assets	90,869	15,818	7,338
Financial assets measured at amortized cost \| Carrying value
Financial instruments, risk management and capital management
Financial assets	42,334
Financial assets measured at amortized cost \| Other non-current assets and security deposits
Financial instruments, risk management and capital management
Financial assets	796	769	30
Financial assets measured at amortized cost \| Receivables and other
Financial instruments, risk management and capital management
Financial assets	$ 363	$ 1,140	$ 69

Commitments and Contingencies (Details) $ in Millions		12 Months Ended
Commitments and Contingencies (Details) $ in Millions	Mar. 29, 2021 USD ($) D shares	Dec. 31, 2021 USD ($) shares
Disclosure of contingent liabilities [line items]
Lease commitment		$ 2.3
Issuance of VUmc common stock (in shares) \| shares		235,664
VUmc Agreement
Disclosure of contingent liabilities [line items]
Issuance of VUmc common stock (in shares) \| shares	235,664
Payment of license liability	$ 0.3
License liability payable	$ 5.0
Number of trading days prior to anniversary of IPO \| D	2