GH Research (GHRS) 6-K 23 Aug 23 Unaudited condensed consolidated interim statement of comprehensive income Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Jun. 30, 2023
Cover [Abstract]
Entity Registrant Name	GH Research PLC
Entity Central Index Key	0001855129
Current Fiscal Year End Date	--12-31
Document Type	6-K
Amendment Flag	false
Document Period End Date	Jun. 30, 2023

Unaudited condensed consolidate

Unaudited condensed consolidated interim statement of comprehensive income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Operating expenses
Research and development	$ (7,176)	$ (4,240)	$ (14,482)	$ (8,954)
General and administration	(2,749)	(2,510)	(5,862)	(5,802)
Loss from operations	(9,925)	(6,750)	(20,344)	(14,756)
Finance income	2,122	0	3,611	0
Finance expense	(179)	0	(350)	0
Movement of expected credit loss	217	0	18	0
Foreign exchange gain/(loss)	36	7,084	(1,601)	9,327
Total other income	2,196	7,084	1,678	9,327
(Loss)/profit before tax	(7,729)	334	(18,666)	(5,429)
Tax charge/(credit)	0	0	0	0
(Loss)/profit for the period	(7,729)	334	(18,666)	(5,429)
Items that may be reclassified to profit or loss
Fair value movement on marketable securities	(1,512)	0	(788)	0
Currency translation adjustment	(57)	(7,054)	1,619	(9,315)
Total comprehensive loss for the period	(9,298)	(6,720)	(17,835)	(14,744)
Attributable to owners:
(Loss)/profit for the period	(7,729)	334	(18,666)	(5,429)
Total comprehensive loss for the period	$ (9,298)	$ (6,720)	$ (17,835)	$ (14,744)
(Loss)/earnings per share
Basic (loss)/earnings per share (in dollars per share)	$ (0.15)	$ 0.01	$ (0.36)	$ (0.1)
Diluted (loss)/earnings per share (in dollars per share)	$ (0.15)	$ 0.01	$ (0.36)	$ (0.1)

Unaudited condensed consolida_2

Unaudited condensed consolidated interim statement of financial position - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 96,895	$ 165,955
Other financial assets	54,728	0
Marketable securities	13,761	0
Other current assets	1,015	2,586
Total current assets	166,399	168,541
Non-current assets
Marketable securities	72,697	85,724
Property, plant and equipment	1,176	97
Total non-current assets	73,873	85,821
Total assets	240,272	254,362
Current liabilities
Trade payables	2,912	1,868
Lease liability	267	0
Other current liabilities	3,378	2,678
Total current liabilities	6,557	4,546
Non-current liabilities
Lease liability	732	0
Total non-current liabilities	732	0
Total liabilities	7,289	4,546
Equity attributable to owners
Share capital	1,301	1,301
Additional paid-in capital	291,448	291,448
Other reserves	2,809	2,595
Foreign currency translation reserve	(11,416)	(13,035)
Accumulated deficit	(51,159)	(32,493)
Total equity	232,983	249,816
Total liabilities and equity	$ 240,272	$ 254,362

Unaudited condensed consolida_3

Unaudited condensed consolidated interim statement of changes in equity - USD ($) $ in Thousands	Total	Share Capital [Member]	Additional Paid-in Capital [Member]	Other Reserves [Member]	Foreign Currency Translation Reserve [Member]	Accumulated Deficit [Member]
Beginning balance at Dec. 31, 2021	$ 277,175	$ 1,301	$ 291,448	$ 366	$ (5,903)	$ (10,037)
Changes in equity
Loss for the period	(5,429)	0	0	0	0	(5,429)
Translation adjustment	(9,315)	0	0	0	(9,315)	0
Total comprehensive loss for the period	(14,744)	0	0	0	(9,315)	(5,429)
Share-based compensation expense	793	0	0	793	0	0
Total transactions with owners	793	0	0	793	0	0
Ending balance at Jun. 30, 2022	263,224	1,301	291,448	1,159	(15,218)	(15,466)
Beginning balance at Dec. 31, 2022	249,816	1,301	291,448	2,595	(13,035)	(32,493)
Changes in equity
Loss for the period	(18,666)	0	0	0	0	(18,666)
Translation adjustment	1,619
Other comprehensive (expense)/income	831	0	0	(788)	1,619	0
Total comprehensive loss for the period	(17,835)	0	0	(788)	1,619	(18,666)
Share-based compensation expense	1,002	0	0	1,002	0	0
Total transactions with owners	1,002	0	0	1,002	0	0
Ending balance at Jun. 30, 2023	$ 232,983	$ 1,301	$ 291,448	$ 2,809	$ (11,416)	$ (51,159)

Unaudited condensed consolida_4

Unaudited condensed consolidated interim statement of cash flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities
Loss for the period	$ (18,666)	$ (5,429)
Depreciation	157	22
Share-based compensation expense	1,002	793
Finance income	(3,611)	0
Finance expense	350	0
Movement of expected credit loss	(18)	0
Foreign exchange loss/(gain)	1,601	(9,327)
Movement in working capital	3,173	2,654
Cash flows used in operating activities	(16,012)	(11,287)
Finance expense paid	(280)	0
Finance income received	1,381	0
Net cash used in operating activities	(14,911)	(11,287)
Cash flows used in investing activities
Purchase of other financial assets	(54,000)	0
Purchase of property, plant and equipment	(68)	(34)
Cash flows used in investing activities	(54,068)	(34)
Cash flows used in financing activities
Payment of lease liability	(107)	0
Net decrease in cash	(69,086)	(11,321)
Cash at the beginning of the period	165,955	276,776
Impact of foreign exchange on cash	26	(78)
Cash at the end of the period	$ 96,895	$ 265,377

Corporate information

Corporate information	6 Months Ended
	Jun. 30, 2023
Corporate information [Abstract]
Corporate information	1. Corporate information GH Research PLC (the “Company”) was incorporated on March 29, 2021. The registered office of the Company is located at Joshua Dawson House, Dawson Street, Dublin 2, Ireland. The Company and its subsidiary, GH Research Ireland Limited, (together the “Group” or “GH Research”) are a clinical-stage biopharmaceutical company dedicated to transforming the treatment of psychiatric and neurological disorders. Its initial focus is on developing the novel and proprietary mebufotenin (5-methoxy-N,N-dimethyltryptamine, or 5-MeO-DMT) therapies for the treatment of patients with Treatment Resistant Depression, or TRD. Its portfolio currently includes GH001, a proprietary inhalable mebufotenin product candidate, GH002, a proprietary intravenous mebufotenin product candidate, and GH003, a proprietary intranasal mebufotenin product candidate. These unaudited condensed consolidated interim financial statements were presented to the board of directors and approved by them for issue on August 23, 2023.

Basis of preparation, significa

Basis of preparation, significant judgments, and accounting policies	6 Months Ended
	Jun. 30, 2023
Basis of preparation, significant judgments, and accounting policies [Abstract]
Basis of preparation, significant judgments, and accounting policies	2. Basis of preparation, significant judgments, and accounting policies Basis of preparation Compliance with International Financial Reporting Standards The unaudited condensed consolidated interim financial statements for the three and six months ended June 30, 2023 have been prepared in accordance with IAS 34 “Interim Financial Reporting”. The unaudited condensed consolidated interim financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements for the year ended December 31, 2022 which were prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). These unaudited condensed consolidated interim financial statements are presented in U.S. dollar (“USD” or “$”), which is the Company’s functional currency and the Group’s presentation currency. The financial information presented in this interim report does not represent full statutory accounts as defined by the Companies Act 2014. The statutory accounts of GH Research PLC for the year ended December 31, 2022, are expected to be filed with the Companies Registration Office by November 26, 2023. New and amended IFRS standards There are no new IFRS standards, amendments to standards or interpretations that are mandatory for the financial year beginning on January 1, 2023, that are relevant to the Group and that have had any material impact in the interim period. New standards, amendments to standards and interpretations that are not yet effective, have been deemed by the Group as currently not relevant and are not listed here. Going concern basis GH Research is a clinical-stage biopharmaceutical company developing innovative therapeutics. The Group is exposed to all risks inherent in establishing and developing its business, including the substantial uncertainty that current projects will succeed. Research and development expenses have been incurred from the start of the Group’s activities, generating negative cash flows from operating activities since formation. Since its incorporation, the Group has funded its growth through capital increases. The Group has no bank loans or other debt outstanding, except lease liabilities, as of June 30, 2023. As a result, the Group is not exposed to liquidity risk through requests for early repayment of loans. As of June 30, 2023, the Group’s cash and cash equivalents amounted to $96.9 million (December 31, 2022: $166.0 million). The Group also held marketable securities of $86.5 million and other financial assets of $54.7 million as of June 30, 2023, (December 31, 2022: marketable securities of $85.7 million and other financial assets of $ nil The Board of Directors believes that the Group has sufficient financial resources available to cover its planned cash outflows for at least the next twelve months from the date of issuance of these unaudited condensed consolidated interim financial statements. The Group, therefore, continues to adopt the going concern basis in preparing its unaudited condensed consolidated interim financial statements. Use of estimates and judgments The preparation of the unaudited condensed consolidated interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing these unaudited condensed consolidated interim financial statements, the significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty are consistent with those that applied in the preparation of the consolidated financial statements for the year ended December 31, 2022. Accounting policies The accounting policies, presentation and methods of computation followed in the unaudited condensed consolidated interim financial statements are consistent with those applied in the Group’s most recent annual financial statements and have been applied consistently to all periods presented in the unaudited condensed consolidated interim financial statements except for the amendments and new accounting policies set out below. Other financial assets Other financial assets represent money market funds with a weighted average maturity of more than 90 days and are carried at fair value through profit or loss as the cash flows from these funds do not represent solely payments of principal and interest. Leases and right-of-use assets The Group recognizes a right-of-use (“ROU”) asset and a corresponding lease liability for all arrangements in which it is a lessee, except for leases with a term of 12 months or less (short-term leases) and low-value leases. Under IFRS 16 the Group recognizes a ROU asset and a lease liability at the lease commencement date at the present value of the future lease payments, discounted at the Group’s incremental borrowing rate. The ROU asset is subsequently depreciated using the straight-line method over the lease term within depreciation expenses and an interest expense on lease liabilities is recognized within finance expense in the Group’s unaudited condensed consolidated interim income statement. The interest expense is calculated based on the incremental borrowing rate of the Group. For short-term or low value leases, the Group recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease. Current and deferred income tax The interim income tax expense is calculated based on the Company’s estimate of the weighted average effective annual income tax rate expected for the full year. The current and deferred income tax charge was $ nil Loss and earnings per share Basic loss and earnings per share is calculated by dividing the net loss or profit attributable to shareholders by the weighted average number of shares in issue during the period. Diluted earnings per share is calculated using the treasury method which adjusts for the potential dilutive effect of other share options if such share options were exercised and are not anti-dilutive. Segment reporting Management considers the Group to have only a single

Expenses by nature

Expenses by nature	6 Months Ended
	Jun. 30, 2023
Expenses by nature [Abstract]
Expenses by nature	3. Expenses by nature The following table provides the consolidated statement of comprehensive income classification of our expense by nature: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 $’000 $’000 $’000 $’000 External research and development expenses 5,489 3,118 11,314 7,001 Employee expenses 1 1,626 1,025 3,045 1,823 Depreciation 10 7 20 15 Other expenses 51 90 103 115 Total research and development expenses 7,176 4,240 14,482 8,954 External costs 1,839 1,932 4,109 4,681 Employee expenses 2 840 574 1,616 1,114 Depreciation 70 4 137 7 Total general and administrative expenses 2,749 2,510 5,862 5,802 Total operating expenses 9,925 6,750 20,344 14,756 1 2 Foreign exchange gain Foreign exchange gain of $36 thousand for the three months ended June 30, 2023 (3 months ended June 30, 2022, gain of $7.1 million), and foreign exchange loss of $1.6 million for the six months ended June 30, 2023 (6 months ended June 30, 2022, gain of $9.3 million) consists primarily of gains and losses related to the translation of the U.S. dollar cash and other financial assets balance into euro in the accounts of the Company’s subsidiary, GH Research Ireland Limited, whose functional currency is euro as explained in the Group’s consolidated financial statements for the year ended December 31, 2022. At June 30, 2023, if the U.S. dollar had weakened/strengthened by 10% against the euro with all other variables held constant, the loss before tax for the six months ended June 30, 2023, would have been $8.1 million higher/lower, mainly related to the translation of cash and other financial assets held in U.S. dollar in the Company’s subsidiary, GH Research Ireland Limited.

Finance income and expense

Finance income and expense	6 Months Ended
	Jun. 30, 2023
Finance Income and Expense [Abstract]
Finance income and expense	4. Finance income and expense Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 $’000 $’000 $’000 $’000 Finance income Gain on cash equivalents and other financial assets at fair value through profit and loss 1,089 - 1,554 - Interest income under effective interest rate method at fair value through other comprehensive income (“FVOCI”) 1,033 - 2,057 - Finance income 2,122 - 3,611 - Finance expense Finance expense on investments (163 ) - (316 ) - Finance expense on lease liability (16 ) - (34 ) - Finance expense (179 ) - (350 ) -

Cash and cash equivalents

Cash and cash equivalents	6 Months Ended
	Jun. 30, 2023
Cash and cash equivalents [Abstract]
Cash and cash equivalents	5. Cash and cash equivalents June 30, December 31, 2023 2022 $’000 $’000 Cash at bank and in hand 60,397 130,252 Cash equivalents 36,498 35,703 96,895 165,955 During the six months ended June 30, 2023, an investment of $54.0 million was made in a money market fund. This investment was classified as other financial assets.

Marketable securities

Marketable securities	6 Months Ended
	Jun. 30, 2023
Marketable securities [Abstract]
Marketable securities	6. Marketable securities Marketable securities $’000 Fair value At January 1, 2023 85,724 Additions - Accrued interest 2,057 Interest received (553 ) Fair value movement (770 ) At June 30, 2023 86,458 The Group holds government and corporate listed bonds which comprise marketable securities measured at FVOCI. These marketable securities had a fair value of $86.5 million at June 30, 2023, (December 31, 2022: $85.7 million). The impairment loss allowance for expected credit losses at the reporting date was $0.1 million (December 31, 2022: $0.1 million). At June 30, 2023, the maturity of the Group’s marketable securities ranges from seven months to four years. This maturity has been reflected in the allocation of current and non-current assets in the unaudited condensed consolidated interim statement of financial position. The Group is exposed to credit risk on its cash and cash equivalents, other financial assets and marketable securities in the event of default of the counterparties. The Group’s cash balance is maintained with well established, highly rated financial institutions. The Group’s marketable securities are mainly comprised of investment grade bonds. The Group monitors the credit risk of its investments on a regular basis. A reconciliation of the movement through OCI relating to marketable securities for the three and six months ended June 30, 2023, is as follows: Three months ended June 30, 2023 $’000 At April 1, 2023 (1,282 ) Revaluation adjustments 1,295 Movement of expected credit losses on assets measured at FVOCI 217 At June 30, 2023 230 Six months ended June 30, 2023 $’000 At January 1, 2023 (558 ) Revaluation adjustments 770 Movement of expected credit losses on assets measured at FVOCI 18 At June 30, 2023 230

Other current assets

Other current assets	6 Months Ended
	Jun. 30, 2023
Other current assets [Abstract]
Other current assets	7. Other current assets Other current assets primarily represent prepayments, VAT receivable and research and development tax credit receivable.

Property, plant and equipment

Property, plant and equipment	6 Months Ended
	Jun. 30, 2023
Property, plant and equipment [Abstract]
Property, plant and equipment	8. Property, plant and equipment Property, plant and equipment increased to $1.2 million at June 30, 2023, from $0.1 million at December 31, 2022, an increase of $1.1 million. This was due to a lease for office space which the Group entered into during the period. The term of the lease is four years and nine months and annual cashflows associated with it are $0.3 million. Right of Use Asset - Office $’000 At January 1, 2023 - Additions 1,179 Depreciation expense (125 ) At June 30, 2023 1,054 At the lease commencement date, a ROU asset was recognized at the present value of the future lease payments, discounted at the Group’s incremental borrowing rate.

Trade payables

Trade payables	6 Months Ended
	Jun. 30, 2023
Trade payables [Abstract]
Trade payables	9. Trade payables Trade payables primarily represents amounts incurred for the provision of manufacturing, research and consulting services and legal and professional fees, which have been billed and are outstanding at the end of the period. Trade payables are due to be settled at different times within 12 months.

Lease liability

Lease liability	6 Months Ended
	Jun. 30, 2023
Lease liability [Abstract]
Lease liability	10. Lease liability At June 30, 2023, the Group’s lease liability amounted to $1.0 million relating to the lease of an office as explained in Note 8, “Property, plant and equipment”.

Other current liabilities

Other current liabilities	6 Months Ended
	Jun. 30, 2023
Other current liabilities [Abstract]
Other current liabilities	11. Other current liabilities Other current liabilities primarily represent accruals for operating expenses and employee tax payable.

Contingencies

Contingencies	6 Months Ended
	Jun. 30, 2023
Contingencies [Abstract]
Contingencies	12. Contingencies As of June 30, 2023, there were no material contingencies which required adjustment or disclosure in the unaudited condensed consolidated interim financial statements (2022: none).

Share based compensation

Share based compensation	6 Months Ended
	Jun. 30, 2023
Share based compensation [Abstract]
Share based compensation	13. Share based compensation Share Options In June 2021, the Company adopted a share option plan referred to herein as the Share Option Plan under which grants of options are made to eligible participants. The Company has reserved 1,202,734 ordinary shares for future issuance under the Share Option Plan, which include ordinary shares pursuant to share-based equity awards issued to date. As of June 30, 2023, the Company has 548,817 ordinary shares available for the future issuance of share-based equity awards. Under the Share Option Plan, the options may be settled only in ordinary shares of the Company. Therefore, the grants of share options under the Share Option Plan have been accounted for as equity-settled under IFRS 2. As such, the Company records a charge for the vested portion of award grants and for partially earned but non-vested portions of award grants. During the three and six months ended June 30, 2023, the Company granted the option to purchase 248,500 and 270,820 ordinary shares, respectively, to employees which were in line with the general terms of the Share Option Plan. During the three and six months ended June 30, 2023, 78,499 share options were forfeited. Of the 248,500 share options granted during the three months ended June 30, 2023, 174,000 share options were issued with a contractual term (expiration) of seven years from the grant date with an exercise price of $0.025 per share. A further 20,000 share options of those issued during the three months ended June 30, 2023, vested immediately and had no service condition attached to them. The contractual term (expiration) of those 20,000 share options was eight years from the grant date with the exercise price set at the closing market price on the day prior to grant. The following table summarizes the share option awards outstanding as of June 30, 2023: Average exercise price per share in USD Number of awards Weighted remaining life in years At December 31, 2022 15.32 461,596 7.14 Granted 3.64 270,820 7.19 Forfeited 12.60 (78,499 ) 7.09 At June 30, 2023 10.81 653,917 6.82 45,244 of the awards outstanding as of June 30, 2023 were exercisable and awards expire through 2031. As of June 30, 2023, 109,748 awards are vested and generally subject to a 2 year service condition. The weighted average grant date fair value of awards granted during the three and six months ended June 30, 2023 was $8.08 and $8.01 per award, respectively. The fair values of the options granted were determined on the date of the grant using the Black-Scholes option-pricing model. The Company used an independent valuation firm to assist in calculating the fair value of the award grants per participant. The fair values of the options granted during the three and six months ended June 30, 2023, were determined on the date of the grant using the following assumptions: Three months ended June 30, 2023 Six months ended June 30, 2023 Share price, in USD 8.38-12.74 8.38-12.74 Strike price, in USD (weighted average) 3.09 3.63 Expected volatility 86%-88% 86%-88% Award life (weighted average) 5.5 5.5 Expected dividends - - Risk-free interest rate 3.50%-3.94% 3.50%-4.22% The expected volatility was based on selected volatility determined by median values observed among other comparable public companies. The award life is based on the time interval between the date of grant and the date during the life of the share option after which, when making the grant, the Company expected on average that participants would exercise their options. As of June 30, 2023, Other Reserves within equity includes $3.0 million (December 31, 2022: $2.0 million) relating to the Group’s Share Option Plan. The amount of expense for all awards recognized for services received during the three months ended June 30, 2023 was $0.4 million (three months ended June 30, 2022: $0.3 million) and for the six months ended June 30, 2023 was $1.0 million (six months ended June 30, 2022: $0.8 million).

Related party disclosures

Related party disclosures	6 Months Ended
	Jun. 30, 2023
Related party disclosures [Abstract]
Related party disclosures	14. Related party disclosures There have been no transactions in the three months ended June 30, 2023 and ended June 30, 2022 with related parties that had a material effect on the financial position or performance of the Group.

Loss and earnings per share

Loss and earnings per share	6 Months Ended
	Jun. 30, 2023
Loss and earnings per share [Abstract]
Loss and earnings per share	15. Loss and earnings per share Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 (Loss)/profit attributable to shareholders (in $’000) (7,729 ) 334 (18,666 ) (5,429 ) Weighted average number of shares in issue 52,020,849 52,020,849 52,020,849 52,020,849 Basic and diluted (loss)/earnings per share (in USD) (0.15 ) 0.01 (0.36 ) (0.10 ) For the three months ended June 30, 2023, and the six months ended June 30, 2023, and 2022, basic and diluted loss per share are calculated on the weighted average number of shares issued and outstanding and exclude shares to be issued under the Share Option Plan, as the effect of including those shares would be anti-dilutive. For the three months ended June 30, 2022, basic and diluted earnings per share are calculated on the weighted average number of shares issued and outstanding and, in the case of diluted earnings per share, exclude shares to be issued under the Share Option Plan. The shares to be issued under the Share Option Plan have been excluded as the total of the exercise price and the average unrecognized compensation for the period of the options was greater than the average per share closing price during the three months ended June 30, 2022, and as such are anti-dilutive.

Events after the reporting date

Events after the reporting date	6 Months Ended
	Jun. 30, 2023
Events after the reporting date [Abstract]
Events after the reporting date	16. Events after the reporting date There were no events after the reporting date requiring disclosure in these unaudited condensed consolidated interim financial statements.

Basis of preparation, signifi_2

Basis of preparation, significant judgments, and accounting policies (Policies)	6 Months Ended
	Jun. 30, 2023
Basis of preparation, significant judgments, and accounting policies [Abstract]
Basis of preparation	Basis of preparation Compliance with International Financial Reporting Standards The unaudited condensed consolidated interim financial statements for the three and six months ended June 30, 2023 have been prepared in accordance with IAS 34 “Interim Financial Reporting”. The unaudited condensed consolidated interim financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements for the year ended December 31, 2022 which were prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). These unaudited condensed consolidated interim financial statements are presented in U.S. dollar (“USD” or “$”), which is the Company’s functional currency and the Group’s presentation currency. The financial information presented in this interim report does not represent full statutory accounts as defined by the Companies Act 2014. The statutory accounts of GH Research PLC for the year ended December 31, 2022, are expected to be filed with the Companies Registration Office by November 26, 2023. New and amended IFRS standards There are no new IFRS standards, amendments to standards or interpretations that are mandatory for the financial year beginning on January 1, 2023, that are relevant to the Group and that have had any material impact in the interim period. New standards, amendments to standards and interpretations that are not yet effective, have been deemed by the Group as currently not relevant and are not listed here. Going concern basis GH Research is a clinical-stage biopharmaceutical company developing innovative therapeutics. The Group is exposed to all risks inherent in establishing and developing its business, including the substantial uncertainty that current projects will succeed. Research and development expenses have been incurred from the start of the Group’s activities, generating negative cash flows from operating activities since formation. Since its incorporation, the Group has funded its growth through capital increases. The Group has no bank loans or other debt outstanding, except lease liabilities, as of June 30, 2023. As a result, the Group is not exposed to liquidity risk through requests for early repayment of loans. As of June 30, 2023, the Group’s cash and cash equivalents amounted to $96.9 million (December 31, 2022: $166.0 million). The Group also held marketable securities of $86.5 million and other financial assets of $54.7 million as of June 30, 2023, (December 31, 2022: marketable securities of $85.7 million and other financial assets of $ nil The Board of Directors believes that the Group has sufficient financial resources available to cover its planned cash outflows for at least the next twelve months from the date of issuance of these unaudited condensed consolidated interim financial statements. The Group, therefore, continues to adopt the going concern basis in preparing its unaudited condensed consolidated interim financial statements.
Use of estimates and judgments	Use of estimates and judgments The preparation of the unaudited condensed consolidated interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing these unaudited condensed consolidated interim financial statements, the significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty are consistent with those that applied in the preparation of the consolidated financial statements for the year ended December 31, 2022.
Other financial assets	Other financial assets Other financial assets represent money market funds with a weighted average maturity of more than 90 days and are carried at fair value through profit or loss as the cash flows from these funds do not represent solely payments of principal and interest.
Leases and right-of-use assets	Leases and right-of-use assets The Group recognizes a right-of-use (“ROU”) asset and a corresponding lease liability for all arrangements in which it is a lessee, except for leases with a term of 12 months or less (short-term leases) and low-value leases. Under IFRS 16 the Group recognizes a ROU asset and a lease liability at the lease commencement date at the present value of the future lease payments, discounted at the Group’s incremental borrowing rate. The ROU asset is subsequently depreciated using the straight-line method over the lease term within depreciation expenses and an interest expense on lease liabilities is recognized within finance expense in the Group’s unaudited condensed consolidated interim income statement. The interest expense is calculated based on the incremental borrowing rate of the Group. For short-term or low value leases, the Group recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.
Current and deferred income tax	Current and deferred income tax The interim income tax expense is calculated based on the Company’s estimate of the weighted average effective annual income tax rate expected for the full year. The current and deferred income tax charge was $ nil
Loss and earnings per share	Loss and earnings per share Basic loss and earnings per share is calculated by dividing the net loss or profit attributable to shareholders by the weighted average number of shares in issue during the period. Diluted earnings per share is calculated using the treasury method which adjusts for the potential dilutive effect of other share options if such share options were exercised and are not anti-dilutive.
Segment reporting	Segment reporting Management considers the Group to have only a single

Expenses by nature (Tables)

Expenses by nature (Tables)	6 Months Ended
	Jun. 30, 2023
Expenses by nature [Abstract]
Expenses by Nature	The following table provides the consolidated statement of comprehensive income classification of our expense by nature: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 $’000 $’000 $’000 $’000 External research and development expenses 5,489 3,118 11,314 7,001 Employee expenses 1 1,626 1,025 3,045 1,823 Depreciation 10 7 20 15 Other expenses 51 90 103 115 Total research and development expenses 7,176 4,240 14,482 8,954 External costs 1,839 1,932 4,109 4,681 Employee expenses 2 840 574 1,616 1,114 Depreciation 70 4 137 7 Total general and administrative expenses 2,749 2,510 5,862 5,802 Total operating expenses 9,925 6,750 20,344 14,756

Finance income and expense (Tab

Finance income and expense (Tables)	6 Months Ended
	Jun. 30, 2023
Finance Income and Expense [Abstract]
Finance Income and Expense	Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 $’000 $’000 $’000 $’000 Finance income Gain on cash equivalents and other financial assets at fair value through profit and loss 1,089 - 1,554 - Interest income under effective interest rate method at fair value through other comprehensive income (“FVOCI”) 1,033 - 2,057 - Finance income 2,122 - 3,611 - Finance expense Finance expense on investments (163 ) - (316 ) - Finance expense on lease liability (16 ) - (34 ) - Finance expense (179 ) - (350 ) -

Cash and cash equivalents (Tabl

Cash and cash equivalents (Tables)	6 Months Ended
	Jun. 30, 2023
Cash and cash equivalents [Abstract]
Cash and cash equivalents	June 30, December 31, 2023 2022 $’000 $’000 Cash at bank and in hand 60,397 130,252 Cash equivalents 36,498 35,703 96,895 165,955

Marketable securities (Tables)

Marketable securities (Tables)	6 Months Ended
	Jun. 30, 2023
Marketable securities [Abstract]
Marketable Securities Measured at FVOCI	Marketable securities $’000 Fair value At January 1, 2023 85,724 Additions - Accrued interest 2,057 Interest received (553 ) Fair value movement (770 ) At June 30, 2023 86,458
Overall Movement through OCI	A reconciliation of the movement through OCI relating to marketable securities for the three and six months ended June 30, 2023, is as follows: Three months ended June 30, 2023 $’000 At April 1, 2023 (1,282 ) Revaluation adjustments 1,295 Movement of expected credit losses on assets measured at FVOCI 217 At June 30, 2023 230 Six months ended June 30, 2023 $’000 At January 1, 2023 (558 ) Revaluation adjustments 770 Movement of expected credit losses on assets measured at FVOCI 18 At June 30, 2023 230

Property, plant and equipment (

Property, plant and equipment (Tables)	6 Months Ended
	Jun. 30, 2023
Property, plant and equipment [Abstract]
Property, Plant and Equipment	Property, plant and equipment increased to $1.2 million at June 30, 2023, from $0.1 million at December 31, 2022, an increase of $1.1 million. This was due to a lease for office space which the Group entered into during the period. The term of the lease is four years and nine months and annual cashflows associated with it are $0.3 million. Right of Use Asset - Office $’000 At January 1, 2023 - Additions 1,179 Depreciation expense (125 ) At June 30, 2023 1,054

Share based compensation (Table

Share based compensation (Tables)	6 Months Ended
	Jun. 30, 2023
Share based compensation [Abstract]
Share-based Compensation Plans Outstanding	The following table summarizes the share option awards outstanding as of June 30, 2023: Average exercise price per share in USD Number of awards Weighted remaining life in years At December 31, 2022 15.32 461,596 7.14 Granted 3.64 270,820 7.19 Forfeited 12.60 (78,499 ) 7.09 At June 30, 2023 10.81 653,917 6.82
Weighted-average Assumptions	The fair values of the options granted during the three and six months ended June 30, 2023, were determined on the date of the grant using the following assumptions: Three months ended June 30, 2023 Six months ended June 30, 2023 Share price, in USD 8.38-12.74 8.38-12.74 Strike price, in USD (weighted average) 3.09 3.63 Expected volatility 86%-88% 86%-88% Award life (weighted average) 5.5 5.5 Expected dividends - - Risk-free interest rate 3.50%-3.94% 3.50%-4.22%

Loss and earnings per share (Ta

Loss and earnings per share (Tables)	6 Months Ended
	Jun. 30, 2023
Loss and earnings per share [Abstract]
Loss and Earnings Per Share	Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 (Loss)/profit attributable to shareholders (in $’000) (7,729 ) 334 (18,666 ) (5,429 ) Weighted average number of shares in issue 52,020,849 52,020,849 52,020,849 52,020,849 Basic and diluted (loss)/earnings per share (in USD) (0.15 ) 0.01 (0.36 ) (0.10 )

Basis of preparation, signifi_3

Basis of preparation, significant judgments, and accounting policies, Going Concern (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021
Going concern basis [Abstract]
Bank loans or other debt outstanding	$ 0
Cash and cash equivalents	96,895	$ 165,955	$ 265,377	$ 276,776
Marketable securities	86,500	85,700
Other financial assets	$ 54,728	$ 0

Basis of preparation, signifi_4

Basis of preparation, significant judgments, and accounting policies, Other Financial Assets (Details)	6 Months Ended
	Jun. 30, 2023
Other financial assets [Abstract]
Minimum weighted average maturity period of money market funds	90 days

Basis of preparation, signifi_5

Basis of preparation, significant judgments, and accounting policies, Current and Deferred Income Tax (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Current and deferred income tax [Abstract]
Current and deferred income tax charge	$ 0	$ 0	$ 0	$ 0
Deferred tax assets	$ 0		$ 0

Basis of preparation, signifi_6

Basis of preparation, significant judgments, and accounting policies, Segment Reporting (Details)	6 Months Ended
	Jun. 30, 2023 Segment
Segment reporting [Abstract]
Number of segments	1

Expenses by nature (Details)

Expenses by nature (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Research and development [Abstract]
External research and development expenses		$ 5,489	$ 3,118	$ 11,314	$ 7,001
Employee expenses	[1]	1,626	1,025	3,045	1,823
Depreciation		10	7	20	15
Other expenses		51	90	103	115
Total research and development expenses		7,176	4,240	14,482	8,954
General and administrative [Abstract]
External costs		1,839	1,932	4,109	4,681
Employee expenses	[2]	840	574	1,616	1,114
Depreciation		70	4	137	7
Total general and administrative expenses		2,749	2,510	5,862	5,802
Total operating expenses		9,925	6,750	20,344	14,756
Share-based compensation expense included in employees expenses for employees in research and development department		200	300	600	400
Share-based compensation expense included in employees expenses in general and administrative		200	200	400	400
Foreign exchange gain [Abstract]
Foreign exchange gain		$ 36	$ 7,084	(1,601)	$ 9,327
Loss before tax higher/lower related to translation of cash held				$ 8,100
[1]Included in employee expenses is share based compensation expense of $0.2 million and $0.6 million for the three and six months ended June 30, 2023, respectively, relating to employees in the research and development department (three and six months ended June 30, 2022, $0.3 million and $0.4 million, respectively).[2]Included in employee expenses is share based compensation expense of $0.2 million and $0.4 million for the three and six months ended June 30, 2023, respectively, relating to employees in the general and administrative department (three and six months ended June 30, 2022, $0.2 million and $0.4 million, respectively).

Finance income and expense (Det

Finance income and expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Finance income [Abstract]
Gain on cash equivalents and other financial assets at fair value through profit and loss	$ 1,089	$ 0	$ 1,554	$ 0
Interest income under effective interest rate method at fair value through other comprehensive income ("FVOCI")	1,033	0	2,057	0
Finance income	2,122	0	3,611	0
Finance expense [Abstract]
Finance expenses on investments	(163)	0	(316)	0
Finance expense on lease liability	(16)	0	(34)	0
Finance expense	$ (179)	$ 0	$ (350)	$ 0

Cash and cash equivalents (Deta

Cash and cash equivalents (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021
Cash and cash equivalents [Abstract]
Cash at bank and in hand	$ 60,397	$ 130,252
Cash equivalents	36,498	35,703
Cash and cash equivalents	96,895	$ 165,955	$ 265,377	$ 276,776
Investment of money market fund	$ 54,000

Marketable securities, Measured

Marketable securities, Measured at FVOCI (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Fair value [Abstract]
Impairment loss	$ 100	$ 100
Bottom of Range [Member]
Fair value [Abstract]
Marketable securities at FVOCI maturity period	7 months
Top of Range [Member]
Fair value [Abstract]
Marketable securities at FVOCI maturity period		4 years
FVOCI [Member]
Fair value [Abstract]
Opening balance	$ 85,724
Additions	0
Accrued interest	2,057
Interest received	(553)
Fair value movement	(770)
Closing balance	$ 86,458	$ 85,724

Marketable securities, Reconcil

Marketable securities, Reconciliation of the movement FVOCI (Details) - FVOCI [Member] - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023
Reconciliation of the movement FVOCI [Abstract]
Opening balance	$ (1,282)	$ (558)
Revaluation adjustments	1,295	770
Movement of expected credit losses on assets measured at FVOCI	217	18
Closing balance	$ 230	$ 230

Property, plant and equipment_2

Property, plant and equipment (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Property, plant and equipment [Abstract]
Change in property, plant and equipment	$ 1,100
Lease term	4 years 9 months
Cash outflow for leases	$ 300
Property, plant and equipment, beginning balance	97
Property, plant and equipment, ending balance	1,176
Right of Use Asset [Member] | Office [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, beginning balance	0
Additions	1,179
Depreciation expense	(125)
Property, plant and equipment, ending balance	$ 1,054

Lease liability (Details)

Lease liability (Details) $ in Millions	Jun. 30, 2023 USD ($)
Lease liability [Abstract]
Lease liability for office space	$ 1

Share based compensation, Share

Share based compensation, Share Options (Details)	3 Months Ended	6 Months Ended
	Jun. 30, 2023 shares $ / shares	Jun. 30, 2023 shares $ / shares	Jun. 30, 2021 shares
Share based payment arrangement [Abstract]
Number of shares reserved for future issuance (in shares)			1,202,734
Number of ordinary shares available for future issuance (in shares)	548,817	548,817
Number of option granted (in shares)	248,500	270,820
Number of share option forfeited (in shares)	(78,499)	(78,499)
Exercise price for option granted (in dollars per share) | $ / shares		$ 3.64
Option, Expiration Term One [Member]
Share based payment arrangement [Abstract]
Number of option granted (in shares)	174,000
Share option award granted period	7 years
Exercise price for option granted (in dollars per share) | $ / shares	$ 0.025
Option, Expiration Period Two [Member]
Share based payment arrangement [Abstract]
Number of option granted (in shares)	20,000
Share option award granted period	8 years

Share based compensation, Sha_2

Share based compensation, Share Option Awards Outstanding (Details)	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2023 shares $ / shares	Jun. 30, 2023 shares $ / shares	Dec. 31, 2022 shares $ / shares
Average exercise price per share [Abstract]
Outstanding at beginning of period (in dollars per share) | $ / shares		$ 15.32
Granted (in dollars per share) | $ / shares		3.64
Forfeited (in dollars per share) | $ / shares		12.6
Outstanding at end of period (in dollars per share) | $ / shares	$ 10.81	$ 10.81	$ 15.32
Number of awards [Abstract]
Outstanding at beginning of period (in shares)		461,596
Granted (in shares)	248,500	270,820
Forfeited (in shares)	(78,499)	(78,499)
Outstanding at end of period (in shares)	653,917	653,917	461,596
Weighted average remaining life [Abstract]
Outstanding weighted average remaining life in years		6 years 9 months 25 days	7 years 1 month 20 days
Granted weighted average remaining life in years		7 years 2 months 8 days
Forfeited weighted average remaining life in years		7 years 1 month 2 days
Number of option exercisable (in shares)	45,244	45,244
Number of options vested (in shares)		109,748
Vesting condition		2 years
Weighted average grant date fair value (in dollars per share) | $ / shares	$ 8.08	$ 8.01

Share based compensation, Fair

Share based compensation, Fair Values of the Options Granted (Details) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($) yr $ / shares	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) yr $ / shares	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Weighted average assumptions [Abstract]
Strike price (in dollars per share) | $ / shares	$ 3.09		$ 3.63
Award life (weighted average) | yr	5.5		5.5
Expected dividends	0%		0%
Other reserves within equity on consolidated statement | $	$ 2,809		$ 2,809		$ 2,595
Expense for awards recognized | $	400	$ 300	1,002	$ 793
Share Option Plan [member]
Weighted average assumptions [Abstract]
Other reserves within equity on consolidated statement | $	$ 3,000		$ 3,000		$ 2,000
Bottom of Range [Member]
Weighted average assumptions [Abstract]
Strike price (in dollars per share) | $ / shares	$ 8.38		$ 8.38
Expected volatility	86%		86%
Risk-free interest rate	3.50%		3.50%
Top of Range [Member]
Weighted average assumptions [Abstract]
Strike price (in dollars per share) | $ / shares	$ 12.74		$ 12.74
Expected volatility	88%		88%
Risk-free interest rate	3.94%		4.22%

Loss and earnings per share (De

Loss and earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Loss and earnings per share [Abstract]
(Loss)/profit attributable to shareholders	$ (7,729)	$ 334	$ (18,666)	$ (5,429)
Weighted average number of shares in issue (in shares)	52,020,849	52,020,849	52,020,849	52,020,849
Basic (loss)/earnings per share (in dollars per share)	$ (0.15)	$ 0.01	$ (0.36)	$ (0.1)
Diluted (loss)/earnings per share (in dollars per share)	$ (0.15)	$ 0.01	$ (0.36)	$ (0.1)