0001558370-24-003626 | 20-F | XBRL Viewer

Related parties - Director and shareholder compensation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of transactions between related parties [line items]
Board fees	$ 360	$ 320	$ 227
Consultancy fees			20
Total director and shareholder compensation	360	320	247
Bottom of range
Disclosure of transactions between related parties [line items]
Related party expenses	$ 100	$ 100	$ 100

Property and equipment

12 Months Ended

Dec. 31, 2023

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, 2022	$	123	$	1,724	$	36	$	192	$	2,075
Additions		—		525		6		56		587
Foreign currency translation adjustment		(6)		(108)		(2)		(10)		(126)
Balance at December 31, 2022		117		2,141		40		238		2,536
Additions		275		388		25		42		730
Disposals		(23)		(12)		—		—		(35)
Foreign currency translation adjustment		9		81		2		14		106
Balance at December 31, 2023	$	378	$	2,598	$	67	$	294	$	3,337
Accumulated depreciation
Balance at January 1, 2022	$	19	$	538	$	16	$	57	$	630
Charge for the year		87		366		8		43		504
Foreign currency translation adjustment		(1)		(26)		—		(3)		(30)
Balance at December 31, 2022		105		878		24		97		1,104
Charge for the year		44		505		12		55		616
Disposals		(23)		(12)		—		—		(35)
Foreign currency translation adjustment		4		40		1		5		50
Balance at December 31, 2023	$	130	$	1,411	$	37	$	157	$	1,735
Carrying amounts
Property and equipment, net at December 31, 2022	$	12	$	1,263	$	16	$	141	$	1,432
Property and equipment, net at December 31, 2023	$	248	$	1,187	$	30	$	137	$	1,602

Leases (Details) - USD ($) $ in Thousands	12 Months Ended
Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Leases
Balance at beginning	$ 651	$ 501
Additions	825	400
Depreciation charges	(662)	(277)
Foreign currency exchange difference	78	27
Balance at Ending	$ 892	$ 651

Summary of significant accounting policies (Policies)

12 Months Ended

Dec. 31, 2023

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 Accounting Standards (IFRS) as issued by the International Accounting Standards Board (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 material 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, 2023, 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 of the Company, it 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, 2023, the Company had an accumulated deficit of $148.1 million. The Company expects to continue to generate operating losses in the foreseeable future. It expects that its cash, cash equivalents and investments of $95.6 million as of December 31, 2023 will be sufficient to fund its operating expenses and capital expenditure requirements for at least the next 12 months following the issuance of these financial statements. Accordingly, the consolidated financial statements have been prepared on a going concern basis.

Until the Company can generate sufficient product revenue to satisfy its cash requirements, which it may never do, it expects to finance its 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 its ability to meet its fundraising needs. If it is unable to obtain sufficient funding in a timely manner or on commercially acceptable terms, it may have to delay, reduce the scope of, or eliminate one or more of its research programs, and consider other cost reduction initiatives, such as downsizing its operations or withholding initiation or expansion of clinical trials or research. In addition, in the event the Company is not able to generate sufficient funds, it may be unable to continue as a going concern and its business, financial condition and/or results of operations could be materially and adversely affected and could reduce the price of its common shares and it may ultimately go into insolvency. In addition, any perceived or actual inability by the Company to finance its clinical development activities and other business activities may cause the market price of its common shares to decline.

Global Conditions

There may be adverse effects on its business condition and results from general economic and market conditions and overall fluctuations in the United States and international equity markets, including deteriorating market conditions due to investor concerns regarding inflation and international hostilities, including the Russian invasion of Ukraine and the Hamas and Israel war.

Basis of consolidation

(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 upon consolidation. Certain prior year amounts have been reclassified to reflect current year presentation.

Foreign currency

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 N.V., has the functional currency of EUR. The subsidiary company, LAVA Therapeutics, Inc., has the functional currency of USD.

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 and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are recognized within foreign currency exchange gain (loss), net, in the consolidated statements of loss and other comprehensive loss.

For presentation purposes in USD, all 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. Revenue and expense transactions are translated at the monthly average exchange rates, 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 in the consolidated statements of loss and other comprehensive loss and as a separate component of shareholders’ equity.

Segment information

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. 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.

Cash flow statement

e)	Cash flow statement

The cash flow statement has been prepared using the indirect method. For the purposes of the consolidated statements of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined below, net of outstanding bank overdrafts.

Revenue from contracts with customers

f)	Revenue from contracts with customers

The Company may enter into collaboration and licensing arrangements for research and development, manufacturing, and commercialization activities with counterparties for the development and commercialization of its product candidates. These arrangements may contain multiple components, such as (i) licenses, (ii) research and development activities, and (iii) the manufacturing of certain materials. Payments pursuant to these arrangements may include non-refundable and refundable payments, payments upon the achievement of significant regulatory, development and commercial milestones, sales of product at certain agreed-upon amounts, and royalties on product sales.

In determining the appropriate amount of revenue to be recognized as it fulfills its obligations under a collaboration agreement, the Company performs the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are capable of being distinct; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue as the Company satisfies each performance obligation.

Research and development expenses

g)	Research and development expenses

The Company expenses research and development expenses as incurred and does not capitalize them. Internal development expenditures are capitalized when the criteria for recognizing an asset are met in accordance with IAS - 38 Intangible Assets, usually when a regulatory filing has been made in a major market and approval is considered highly probable. Where regulatory and other uncertainties are such that the criteria are not met, the expenditures are recognized in the consolidated statements of loss and other comprehensive loss. 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. It accounts for a governmental research and development payroll tax subsidy from Wet Bevordering Speur en Ontwikkelingswerk (WBSO) as a reduction of the research and development personnel-related expenses when incurred.

General and administrative expenses

h)	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.

Share-based awards

i)	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 its 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 its 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 20 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.

Employee benefits

j)	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. Expenses associated with the servicing of defined contribution plans were $0.6 million for each of the years ended December 31, 2023, 2022 and 2021.

Income taxes

k)	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, or does not give rise to equal taxable and deductible temporary differences;

●	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.

When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit will more likely than not be realized, which is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. As of December 31, 2023 and 2022, the Company does not have any material uncertain tax positions.

Cash and cash equivalents

l)	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, highly liquid investments that are readily convertible to known amounts of cash and 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.

Investments

m)	Investments

The Company’s investments in debt securities consist entirely of investments in U.S. Treasury securities, with maturities ranging from three months to one year. All of these investments are classified as current assets in its consolidated statements of financial position. It has the intent and ability to hold all investments in debt securities until maturity. Accordingly, all investments are recorded at amortized cost on its consolidated statements of financial position, with the amortization of premiums or discounts and earned interest income recorded in its consolidated statements of loss.

Property and equipment

n)	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.

Impairment of long-lived assets

o)	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.

Provisions

p)	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.

Value added tax

q)	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.

Financial instruments

r)	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, and follow its business model of standard working capital purposes. These financial assets are subsequently measured at amortized cost, which in general, approximates to the fair value. 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, adjusted for transaction costs.

After initial recognition, borrowings are subsequently measured at amortized cost using the effective interest method, minus transaction costs that are directly attributable to the financial liability. 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 the next 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, as its business model is such that the Company has the intent to hold these instruments for the sole purpose of collecting contractual cash flows, and the contractual terms give rise to cash flows that are solely for payments of principal and interest. 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.

Leases

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

(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 at the incremental borrowing rate at the lease modification date, 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.

Consolidated statements of loss and other comprehensive loss € in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($) $ / shares shares	Dec. 31, 2023 EUR (€) shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2022 EUR (€) shares	Dec. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2021 EUR (€) shares
Revenue:
Revenue from contracts with customers	$ 6,769	€ 6,769	$ 19,391	€ 19,391	$ 5,350	€ 5,350
Cost of sales of goods	2,546
Cost of providing services	(936)
Gross profit	3,287		19,391		5,350
Operating expenses:
Research and development	(33,814)		(40,105)		(36,945)
General and administrative	(12,726)		(14,124)		(12,018)
Total operating expenses	(46,540)		(54,229)		(48,963)
Operating loss	(43,253)		(34,838)		(43,613)
Interest income (expense), net	2,970		257		(625)
Foreign currency exchange (loss) gain, net	(1,412)		2,923		2,040
Total non-operating income	1,558		3,180		1,415
Loss before income tax	(41,695)		(31,658)		(42,198)
Income tax expense	(279)		(249)		(157)
Loss for the year	(41,974)		(31,907)		(42,355)
Foreign currency translation adjustment	2,073		(6,749)		(5,642)
Total comprehensive loss	$ (39,901)		$ (38,656)		$ (47,997)
Loss per share:
Loss per share, basic \| $ / shares	$ (1.57)		$ (1.23)		$ (2.14)
Loss per share, diluted \| $ / shares	$ (1.57)		$ (1.23)		$ (2.14)
Weighted average common shares outstanding, basic \| shares	26,732,556	26,732,556	25,924,005	25,924,005	19,758,169	19,758,169
Weighted average common shares outstanding, diluted \| shares	26,732,556	26,732,556	25,924,005	25,924,005	19,758,169	19,758,169

Consolidated statements of cash flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities:
Loss before income tax	$ (41,695)	$ (31,658)	$ (42,198)
Adjusted for:
Depreciation and amortization of non-current assets	616	504	331
Foreign currency exchange (gain) loss, net	1,412	(2,923)	(2,040)
Depreciation of right-of-use assets	662	277	227
Share-based compensation expense	5,039	4,113	3,907
Income tax expense	(279)	(249)	(157)
Amortization of premium on investments	(1,900)	(134)	446
Changes in working capital:
Receivables and other	1,870	(2,891)	777
VAT receivable	(281)	416	(35)
Prepaid expenses and other assets	3,385	(1,857)	(2,859)
Trade accounts payable and other	334	1,413	1,618
Deferred offering & financing costs			1,623
Deferred revenue		33,510	(4,649)
License liabilities	(4,797)	(2,828)	13,713
Other liabilities	(3,338)	6,350	649
Net cash (used in) provided by operating activities	(38,972)	4,043	(28,647)
Cash flows from investing activities:
Purchases of property and equipment	(730)	(587)	(764)
Purchases of investments	(90,082)	(70,877)	(45,291)
Maturities of investments	73,177	80,810	2,510
Net cash (used in) provided by investing activities	(17,635)	9,346	(43,545)
Cash flows from financing activities:
Proceeds from option exercises		15
Proceeds from common shares from initial public offering, net			94,189
Proceeds from Series C financing, net			61,798
Payment of Series A preferred and common shares repurchased			(5,167)
Proceeds from borrowings	470	611	680
Payment of principal portion of lease liabilities	(1,041)	(343)	(340)
Net cash (used in) provided by financing activities	(571)	283	151,160
Net (decrease) increase in cash and cash equivalents	(57,178)	13,672	78,968
Cash and cash equivalents at beginning of year	100,333	90,869	15,818
Effects of exchange rate changes	1,076	(4,208)	(3,917)
Cash and cash equivalents at end of year	44,231	100,333	90,869
Supplemental schedule of noncash operating and financing activities:
Issuance of common shares to VUmc in lieu of payment for license liabilities		2,201	3,655
Interest received, classified as operating activities	$ 3,671	851	37
Interest paid, classified as operating activities		$ 97	$ 224

Related parties (Tables)

12 Months Ended

Dec. 31, 2023

Related parties

Schedule of key management compensation


	For the Year Ended
	December 31,
(in thousands)	2023		2022		2021
Key management compensation
Short term employee benefits	$	3,586	$	2,673	$	3,099
Share-based payments		3,503		1,994		2,702
Post-employment benefits		104		108		92
	$	7,193	$	4,775	$	5,893

Leases

12 Months Ended

Dec. 31, 2023

Leases

Leases

12. Leases

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


(in thousands)
Balance at January 1, 2022	$	501
Additions		400
Depreciation charges		(277)
Foreign currency exchange difference		27
Balance at December 31, 2022		651
Additions		825
Depreciation charges		(662)
Foreign currency exchange difference		78
Balance at December 31, 2023	$	892

The additions during the year ended December 31, 2023 primarily relate to the new 3-year lease of laboratory and office space at Yalelaan 62 in Utrecht, the Netherlands in the first quarter of 2023. In August 2023, we notified the landlord that we would terminate a portion of this lease in the first quarter of 2024, resulting in a corresponding depreciation charge of the Company’s right-of-use assets in the year ended December 31, 2023.

The following table provides information about the maturities of the Company’s lease liabilities at December 31, 2023:


(in thousands)
2024	$	550
2025		442
2026		201
2027		—
Total lease commitments		1,193
Less: imputed lease interest		(162)
Total lease liabilities	$	1,031
Current portion	$	440
Non-current portion	$	591

The average incremental borrowing rate applied to the lease liabilities was 15.60% and 15.69% during the years ended December 31, 2023 and 2022, respectively.

Cash outflows related to leases during the years ended December 31, 2023, 2022 and 2021 were $1.0 million, $0.3 million and $0.3 million, respectively.

Its leases consist of leases for office and laboratory space in the Netherlands and the United States, expiring in 2025 and 2026 respectively. Both leases contain renewal options which the Company concluded are not reasonably certain to be exercised, and therefore did not include the effects of the extension options in the measurement of the lease liabilities and right-of-use assets. During the years ended December 31, 2023, 2022, and 2021 the variable lease payments not included in the measurement of the lease liabilities were immaterial and related to utility, common area maintenance and real estate tax charges. All leasehold improvements were paid for in full by the Company.

Share-based compensation - Fair value measurement (Details)	12 Months Ended
	Dec. 31, 2023 USD ($) Y $ / shares	Dec. 31, 2022 USD ($) Y $ / shares	Dec. 31, 2021 USD ($) Y $ / shares
Share-based compensation
Expected annual volatility	88.40%
Expected life, years \| Y	6.08
Weighted average grant date fair value \| $	$ 2.39
Bottom of range
Share-based compensation
Fair value of the common share	$ 1.06
Exercise price	$ 1.40
Risk-free interest rate	3.46%
Top of range
Share-based compensation
Fair value of the common share	$ 2.92
Exercise price	$ 3.86
Risk-free interest rate	4.98%
NL & US
Share-based compensation
Expected annual volatility		83.90%
Expected life, years \| Y		6.08
Weighted average grant date fair value \| $		$ 4.01
NL & US \| Bottom of range
Share-based compensation
Fair value of the common share		$ 1.71
Exercise price		$ 2.34
Risk-free interest rate		1.65%
NL & US \| Top of range
Share-based compensation
Fair value of the common share		$ 3.91
Exercise price		$ 5.50
Risk-free interest rate		3.78%
NL
Share-based compensation
Expected annual volatility			80.10%
Expected life, years \| Y			6.08
Weighted average grant date fair value \| $			$ 3.61
NL \| Bottom of range
Share-based compensation
Fair value of the common share			$ 3.42
Exercise price			$ 5.10
Risk-free interest rate			0.30%
NL \| Top of range
Share-based compensation
Fair value of the common share			$ 5.23
Exercise price			$ 7.77
Risk-free interest rate			0.53%
US
Share-based compensation
Expected annual volatility			80.10%
Expected life, years \| Y			6.08
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
Risk-free interest rate			1.34%

Earnings per share (EPS) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Earnings per share (EPS)
Loss for the year	$ (41,974)	$ (31,907)	$ (42,355)
Weighted average common shares outstanding, basic	26,732,556	25,924,005	19,758,169
Weighted average common shares outstanding, diluted	26,732,556	25,924,005	19,758,169
Loss per share, basic	$ (1.57)	$ (1.23)	$ (2.14)
Loss per share, diluted	$ (1.57)	$ (1.23)	$ (2.14)
Diluted weighted average number of common shares.	0	593,555	250,149

- 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 2023-01-01
-Paragraph 18
-Subparagraph b
-URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=7&code=ifrs-tx-2023-en-r&anchor=para_18_b&doctype=Standard
-URIDate 2023-03-23

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 1
-IssueDate 2023-01-01
-Paragraph 32
-Subparagraph a
-Clause ii
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=1&code=ifrs-tx-2023-en-r&anchor=para_32_a_ii&doctype=Standard
-URIDate 2023-03-23

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 1
-IssueDate 2023-01-01
-Paragraph 24
-Subparagraph b
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=1&code=ifrs-tx-2023-en-r&anchor=para_24_b&doctype=Standard
-URIDate 2023-03-23

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2023-01-01
-Paragraph 28
-Subparagraph b
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2023-en-r&anchor=para_28_b&doctype=Standard
-URIDate 2023-03-23

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2023-01-01
-Paragraph 23
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2023-en-r&anchor=para_23&doctype=Standard
-URIDate 2023-03-23

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Name IFRS
-Number 12
-IssueDate 2023-01-01
-Paragraph B10
-Subparagraph b
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=12&code=ifrs-tx-2023-en-r&anchor=para_B10_b&doctype=Appendix&subtype=B
-URIDate 2023-03-23

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Name IFRS
-Number 17
-IssueDate 2023-01-01
-Paragraph 113
-Subparagraph b
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=17&code=ifrs-tx-2023-en-r&anchor=para_113_b&doctype=Standard
-URIDate 2023-03-23

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 1
-IssueDate 2023-01-01
-Paragraph 81A
-Subparagraph a
-URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=1&code=ifrs-tx-2023-en-r&anchor=para_81A_a&doctype=Standard
-URIDate 2023-03-23

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 1
-IssueDate 2023-01-01
-Paragraph 106
-Subparagraph d
-Clause i
-URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=1&code=ifrs-tx-2023-en-r&anchor=para_106_d_i&doctype=Standard
-URIDate 2023-03-23

+ Details

Taxation - Components of corporate tax expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Taxation
Current tax on result	$ 279	$ 249	$ 139
Deferred tax prior years			18
Total corporate tax	$ 279	$ 249	$ 157

- 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

Summary of significant accounting policies

12 Months Ended

Dec. 31, 2023

Summary of significant accounting policies

Summary of significant accounting policies

2. Summary of material 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 on a historical cost basis.

Going concern

Global Conditions

(b)	Basis of consolidation

c)	Foreign currency

d)	Segment information

e)	Cash flow statement

f)	Revenue from contracts with customers

g)	Research and development expenses

h)	General and administrative expenses

i)	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.

j)	Employee benefits

k)	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, or does not give rise to equal taxable and deductible temporary differences;

●	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.

l)	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.

m)	Investments

n)	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.

o)	Impairment of long-lived assets

p)	Provisions

q)	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.

r)	Financial instruments

(i)

Financial assets

(ii)

Financial liabilities

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

(iii)

Fair value measurements

Leases

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

(i)

Right-of-use assets

(ii)

Lease liabilities

Summary of significant accounting policies (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($) segment	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Property, plant, and equipment
Accumulated deficit	$ (148,067)	$ (108,069)
Cash, cash equivalents and investments	$ 95,600
Number of reportable segment \| segment	1
Top of range
Property, plant, and equipment
Expenses associated with defined contribution plans	$ 600	$ 600	$ 600
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

Revenue - Jansen Agreement (Details) - USD ($)			1 Months Ended			12 Months Ended
Revenue - Jansen Agreement (Details) - USD ($)	Jul. 31, 2023	May 31, 2023	Sep. 30, 2021	Dec. 31, 2020	May 31, 2020	Dec. 31, 2023	Dec. 31, 2022
Research and license agreement
Revenue
Development milestones payment received			$ 1,000,000.0
Janssen Biotech Inc
Revenue
Deferred revenue at beginning of period						$ (35,000,000)	$ (1,527,000)
Deferral of revenue						0	(35,000,000)
Recognized during the period						0	1,490,000
Foreign currency translation difference						0	37,000
Deferred revenue at end of period						(35,000,000)	$ (35,000,000)
Development milestones payment received				$ 1,000,000.0
Buy-up Fee Amount						35,000,000.0
Janssen Biotech Inc \| Research and license agreement
Revenue
Non-refundable upfront payment received					$ 8,000,000.0
Term of agreement					2 years
Years of sale for royalties payable							10 years
Deferred revenue at beginning of period						$ 0
Deferred revenue at end of period							$ 0
Development milestones payment received		$ 2,500,000					$ 0
Proceeds From Milestone Payment	$ 2,500,000

Research and development expenses (Tables)

12 Months Ended

Dec. 31, 2023

Research and development expenses

Schedule of research and development expenses


	For the Year Ended December 31,
(in thousands)	2023		2022		2021
Pre-clinical and clinical trial expenses	$	20,421	$	28,178	$	14,188
Personnel-related expenses		6,629		6,150		4,955
Research and development activities expenses		2,680		2,241		1,843
Facilities and other research and development expenses		2,356		1,546		814
Share-based compensation expense		1,728		1,975		788
Amsterdam UMC and other license expenses		-		15		14,357
	$	33,814	$	40,105	$	36,945

Share-based compensation

12 Months Ended

Dec. 31, 2023

Share-based compensation

Share-based compensation

20.	Share-based compensation

20.1	Description 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 its common shares. 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, the Company established the 2021 Long-term Incentive Option Plan, as an incentive for all our 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.

●	the options vest 100% on the first anniversary of the vesting commencement date.

Share-based options

During 2023 and 2022, the board of directors granted 879,771 and 2,358,458 options respectively.

The following table provides information about share-based awards as of December 31, 2023 and 2022:


	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, 2022	620,347	0.01	*()**	1,563,136	5.90	8.90	1,307,150	6.03	9.90
Granted	—	—		—	—		2,358,458	4.01	9.79
Exercised	(16,073)	0.01		(6,124)	2.76		—	—
Lapsed	(778)	0.01		(72,773)	15.00		(20,419)	5.16
Forfeited	(3,039)	0.01		(212,160)	12.96		(237,595)	5.80
Outstanding at December 31, 2022	600,457	0.01	*()**	1,272,079	4.22	7.83	3,407,594	4.66	9.54
Granted	—	—		—	—		879,771	3.17	9.14
Exercised	—	—		—	—		—	—
Lapsed	—	—		(153,389)	3.75		(204,639)	5.69
Forfeited	—	—		(118,935)	2.76		(422,420)	4.50
Outstanding at December 31, 2023	600,457	0.01	*()**	999,755	4.46	7.04	3,660,306	4.27	8.73
Exercisable at December 31, 2023	488,972			792,401			1,158,244
(*) contract term does not have fixed end date

As of December 31, 2023, outstanding options had exercise prices ranging from $0.01 to $15.00.

The weighted-average share price at the date of exercise was $2.94 in the year ended December 31, 2022. There were no options exercised in 2023.

Total share-based compensation expenses for the years ended December 31, 2023, 2022 and 2021 were $5.0 million, $4.1 million and $3.9 million, respectively. In the year ended December 31, 2023 the Company transferred $2.0 million from the equity settled employee benefits reserve to accumulated deficit as a result of lapsed vested options. For these lapsed vested options there is no longer a requirement for a reserve as there are no limitations for distribution within equity.

20.2Measurement of fair values

The fair value of the equity-settled employee share options has been measured using the Black-Scholes formula, for all stock option grants issued after the Company’s IPO in March 2021. The service 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, 2023, 2022 and 2021:


		December 31, 2023	December 31, 2022		December 31, 2021
		NL & US	NL & US		NL		US
Expected annual average volatility		88.4%		83.9%		80.1%		80.1%
Expected life, years		6.08		6.08		6.08		6.08
Fair value of the share options	$	1.06 - 2.92	$	1.71 - 3.91	$	3.42 - 5.23	$	3.12 - 8.71
Exercise price	$	1.40 - 3.86	$	2.34 - 5.50	$	5.10 - 7.77	$	5.10 - 15.00
Dividend yield		—		—		—		—
Risk-free interest rate		3.46% - 4.98%		1.65% - 3.78%		(0.30%) - (0.53%)		0.94% - 1.34%
Weighted average grant date fair value	$	2.39	$	4.01	$	3.61	$	5.95

In 2023 and 2022, all options were granted in USD. 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, limited company-specific historical and implied volatility information is 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, as well as its own limited historical stock performance and its own stock-price volatility. 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 its common shares.

Valuation of common shares

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

Prior to its IPO, the fair value of the common shares was determined by the 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 board considered numerous objective and subjective factors to determine their best estimate of the fair value of its common shares as of each grant date, including:

●	the progress of its 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 the Company’s common shares for its most recent share issuances;

●	its need for future financing to fund operations;

●	the rights and preferences of its preference shares and its preference shares relative to the Company’s common shares;

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

●	external market and economic conditions impacting its 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 its 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.

Cash and cash equivalents (Tables)

12 Months Ended

Dec. 31, 2022

Cash and cash equivalent

Schedule of cash and cash equivalents


		As of December 31,
(in thousands)		2023		2022
Short-term deposits	$	10,326	$	9,965
Current bank accounts		33,905		90,368
	$	44,231	$	100,333

Share capital, share premium and other capital reserves - Preference share (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) tranche shares	Dec. 31, 2020 USD ($) tranche shares	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
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
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

Financial instruments, risk management and capital management (Details)	12 Months Ended
	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Financial instruments, risk management and capital management
Cash and cash equivalents	$ 44,231,000	$ 100,333,000	$ 90,869,000	$ 15,818,000
Foreign exchange gain (loss)	(1,412,000)	2,923,000	$ 2,040,000
Current liabilities	14,941,000	21,954,000
Cash and Cash Equivalents and Current Investments	95,600,000
Credit risk
Financial instruments, risk management and capital management
Cash and cash equivalents	44,200,000	100,300,000
Credit risk \| Euro
Financial instruments, risk management and capital management
SVB Deposits		32,000,000.0
Credit risk \| Euro \| SVB as First-Citizens Bank & Trust Company [member]
Financial instruments, risk management and capital management
Cash and cash equivalents	$ 0
Market risk
Financial instruments, risk management and capital management
Foreign currency exchange rate	7.4
Foreign exchange gain (loss)	$ (1,400,000)
Additional gain or loss recognized in profit or loss	$ 5,900,000
Increase in interest rate or currency rate	1.00%
Liquidity risk
Financial instruments, risk management and capital management
Current liabilities	$ 14,900,000
Cash and Cash Equivalents and Current Investments	95,600,000
Financial liabilities measured at amortized cost
Financial instruments, risk management and capital management
Financial liabilities	15,532,000	17,608,000
Financial liabilities measured at amortized cost \| Borrowings
Financial instruments, risk management and capital management
Financial liabilities	5,282,000	4,640,000
Financial liabilities measured at amortized cost \| Trade payables and other
Financial instruments, risk management and capital management
Financial liabilities	4,446,000	3,965,000
Financial liabilities measured at amortized cost \| Accrued expenses and other current liabilities
Financial instruments, risk management and capital management
Financial liabilities	4,773,000	8,193,000
Financial liabilities measured at amortized cost \| Lease liabilities
Financial instruments, risk management and capital management
Financial liabilities	1,031,000	810,000
Financial assets measured at amortized cost
Financial instruments, risk management and capital management
Financial assets	97,349,000	136,931,000
Financial assets measured at amortized cost \| Cash and cash equivalents
Financial instruments, risk management and capital management
Financial assets	44,231,000	100,333,000
Financial assets measured at amortized cost \| Investments
Financial instruments, risk management and capital management
Financial assets	51,340,000	32,535,000
Financial assets measured at amortized cost \| Other non-current assets and security deposits
Financial instruments, risk management and capital management
Financial assets	319,000	809,000
Financial assets measured at amortized cost \| Receivables and other
Financial instruments, risk management and capital management
Financial assets	$ 1,459,000	$ 3,254,000

Trade payables and other

12 Months Ended

Dec. 31, 2023

Trade payables and other.

Trade payables and other

17. Trade payables and other

The Company had accounts payable balances of $4.4 million and $4.0 million as of December 31, 2023 and 2022, 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 22.

Share capital, share premium and other capital reserves - Major shareholders (Details)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
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	20.60%	20.60%
Versant Ventures
Share capital, share premium and other capital reserves
Shareholding percentage	17.50%	17.50%
Novo Holdings A/S
Share capital, share premium and other capital reserves
Shareholding percentage	7.10%	12.70%
Redmile Biopharma Investments
Share capital, share premium and other capital reserves
Shareholding percentage	7.90%	10.60%
Sanofi Foreign Participations B.V.
Share capital, share premium and other capital reserves
Shareholding percentage	7.30%	7.30%
Other shareholders
Share capital, share premium and other capital reserves
Shareholding percentage	39.60%	31.30%

Material accounting judgments, estimates and assumptions

12 Months Ended

Dec. 31, 2023

Material accounting judgments, estimates and assumptions

Material accounting judgments, estimates and assumptions

3.	Material accounting judgments, estimates and assumptions

The preparation of the Company’s consolidated financial statements requires management to make judgments, 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 its 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 its financial statements, the Company is required to estimate its clinical trial expenses. The clinical trial accrual process seeks to account for expenses resulting from its 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. The objective is to reflect the appropriate clinical trial expenses in its financial statements by matching the appropriate expenses with the period in which services and efforts are expended. The Company accounts for these expenses according to the progress of the trial as measured by subject progression and the timing of various aspects of the trial.

The Company determines accrual estimates based on estimates of the services received and efforts expended that take into account discussions with applicable personnel and outside service providers as to the progress or state of completion of trials. During the course of a clinical trial, it adjusts its clinical expense recognition if actual results differ from its estimates. It makes estimates of its accrued expenses and prepaid assets as of each balance sheet date in its financial statements based on the facts and circumstances known to us at that time. The 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 the Company does not expect its estimates to differ materially from amounts it actually incurs, the Company’s 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 it 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 and capitalization of IP development costs for Dutch corporate income tax purposes, 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 and amortization of the capitalized IP development costs 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 9% income tax rate for 2021 and future years, instead of the general headline rate of 25.8% as of 2022. The Company believes it qualifies for the Innovation Box and is currently in the process of 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 its control. Such changes are reflected in the assumptions when they occur.

Revenue from contracts with customers

The Company must develop estimates and assumptions that require judgment to determine the underlying stand-alone selling price for each performance obligation, which determines how the transaction price is allocated among the performance obligations. The estimation of the stand-alone selling price may include such estimates as forecasted revenues and costs, development timelines, discount rates and probabilities of regulatory and commercial success. The Company also applies significant judgment when evaluating whether contractual obligations represent distinct performance obligations, allocating transaction price to performance obligations within a contract, determining when performance obligations have been met, assessing the recognition and future reversal of variable consideration and determining and applying appropriate methods of measuring progress for performance obligations satisfied over time.

New standards, interpretations and amendments

New standards, interpretations, and amendments issued recently effective

In May 2021, the IASB issued amendments to IAS 12 – Income Taxes, Deferred Tax related to Assets and Liabilities arising from a Single Transaction. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of IAS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The amendments also apply to taxable and deductible temporary differences associated with right-of-use assets and lease liabilities, and decommissioning obligations and corresponding amounts recognized as assets. The amendments apply to transactions that occur on or after the beginning of the earliest comparative period presented. The amendments are effective for annual reporting periods beginning on or after January 1, 2023. The adoption of these amendments did not materially impact its consolidated financial statements.

New standards, amendments to standards, and interpretations issued not yet effective

In January 2020, IASB issued amendments to paragraphs 69 to 76 of International Accounting Standard 1, Presentation of Financial Statements, to specify the requirements for classifying liabilities as current or non-current, effective for annual reporting periods beginning on or after January 1, 2024. The Company determined the amendment has no impact.

Share capital, share premium and other capital reserves - Common shares (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of classes of share capital [line items]
Proceeds from issue of ordinary shares			$ 94,189
Issuance of VUmc common stock (in shares)		491,352	235,664
Shares issued upon exercise of options	0	22,197
Amount of increase (decrease) in lieu of equity license liability			$ 3,700
Percentage payable in lieu of equity license liability		50.00%
Common share
Disclosure of classes of share capital [line items]
Par value per share	$ 0.14	$ 0.14	$ 0.14
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

Earnings per share (EPS) (Tables)

12 Months Ended

Dec. 31, 2023

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)	2023		2022		2021
Loss for the year	$	(41,974)	$	(31,907)	$	(42,355)
Weighted average number of common shares		26,732,556		25,924,005		19,758,169
Basic and diluted loss per share	$	(1.57)	$	(1.23)	$	(2.14)

Revenue - Transaction price allocated to performance obligations (Details) € in Thousands	1 Months Ended	12 Months Ended
	Oct. 31, 2022 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2023 EUR (€)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 EUR (€)	Dec. 31, 2021 USD ($)	Dec. 31, 2021 EUR (€)
Disclosure of performance obligations [line items]
Revenue from contracts with customers		$ 6,769,000	€ 6,769	$ 19,391,000	€ 19,391	$ 5,350,000	€ 5,350
Deferred revenue		35,000,000		35,000,000
Seagen
Disclosure of performance obligations [line items]
Revenue from contracts with customers		4,300,000
Seagen \| Goods or services transferred over time [member]
Disclosure of performance obligations [line items]
Transaction Price		21,500,000		21,500,000
Revenue from contracts with customers		3,666,000		17,901,000
Cumulative Revenue Recognized		21,567,000		17,901,000
other assets				3,309,000
License [Member] \| Seagen
Disclosure of performance obligations [line items]
Revenue from contracts with customers				15,200,000
License [Member] \| Seagen \| Goods or services transferred over time [member]
Disclosure of performance obligations [line items]
Transaction Price		50,000,000		50,000,000
Revenue from contracts with customers				15,165,000
Cumulative Revenue Recognized		15,165,000		15,165,000
Manufacturing Technology Transfer Activities [member] \| Seagen
Disclosure of performance obligations [line items]
Revenue from contracts with customers		200,000		2,100,000
Manufacturing Technology Transfer Activities [member] \| Seagen \| Goods or services transferred over time [member]
Disclosure of performance obligations [line items]
Transaction Price		2,167,000		2,167,000
Revenue from contracts with customers		199,000		2,073,000
Cumulative Revenue Recognized		2,272,000		2,073,000
Initial Supply [Member] \| Seagen
Disclosure of performance obligations [line items]
Revenue from contracts with customers		3,400,000		0
Contract Assets				3,300,000
Initial Supply [Member] \| Seagen \| Goods or services transferred over time [member]
Disclosure of performance obligations [line items]
Transaction Price		3,583,000		3,583,000
Revenue from contracts with customers		3,443,000
Cumulative Revenue Recognized		3,443,000
other assets				3,309,000
Research Activities [Member] \| Seagen
Disclosure of performance obligations [line items]
Accounts receivable		100,000		700,000
Research Activities [Member] \| Seagen \| Goods or services transferred over time [member]
Disclosure of performance obligations [line items]
Transaction Price		750,000		750,000
Revenue from contracts with customers		24,000		663,000
Cumulative Revenue Recognized		687,000		663,000
Buy-up Fee [Member] \| Seagen \| Goods or services transferred over time [member]
Disclosure of performance obligations [line items]
Buy-up Fee Amount		35,000,000		35,000,000
Buy-up Fee [Member] \| Seagen \| Goods or services transferred at point in time [member]
Disclosure of performance obligations [line items]
Non-refundable upfront payment received	$ 50,000,000.0
Deferred revenue		$ 35,000,000.0		35,000,000.0
Buy-up Fee Amount				$ 35,000,000.0

Accrued expenses and other current liabilities (Tables)

12 Months Ended

Dec. 31, 2023

Accrued expenses and other current liabilities.

Schedule of accrued expenses and other current liabilities


		As of December 31,
(in thousands)		2023		2022
Research and development external project costs	$	2,293	$	5,399
Personnel-related expenses		1,475		1,903
Professional fees		523		486
Other		482		405
	$	4,773	$	8,193

Revenue - Seagen Agreement (Details) € in Thousands, $ in Thousands	1 Months Ended		12 Months Ended
	Oct. 31, 2022 USD ($)	Sep. 30, 2022 USD ($) item	Dec. 31, 2023 USD ($)	Dec. 31, 2023 EUR (€)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 EUR (€)	Dec. 31, 2021 USD ($)	Dec. 31, 2021 EUR (€)
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue from contracts with customers			$ 6,769	€ 6,769	$ 19,391	€ 19,391	$ 5,350	€ 5,350
Seagen
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue from contracts with customers			4,300
Seagen \| License Agreement [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Non-refundable upfront payment received	$ 50,000
Maximum amount of nonrefundable upfront payment receivable		$ 650,000
Additional tumor targets \| item		2
Buy-up fee		$ 35,000
Decrease in certain future milestones		30.00%
Years of sale for royalties payable		10 years
Maximum amount of reimbursement entitled to receive		$ 6,500
Revenue from contracts with customers			3,700
Seagen \| License Agreement [Member] \| Service Other
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue from contracts with customers			$ 600

Borrowings

12 Months Ended

Dec. 31, 2023

Borrowings.

Borrowings

16. Borrowings


				As of December 31,
				2023		2022
	Stated				Amount, incl.		Amount, incl.
	interest				accrued		accrued
(in thousands)	rate		Maturity		interest		interest
Innovation Credit	10.0	%	9/30/2025	$	5,282	$	4,640

Current				$	5,282	$	4,640
Non-current				$	—	$	—

In 2019, the Company applied for and received a $5.5 million Innovation Credit (the “Credit”) from Rijksdienst voor Ondernemend Nederland (RVO). The Credit contributed to the development of LAVA-051, and certain assets of that project are pledged as a guarantee.

Borrowings under the Credit bear interest at 10.0% and were received in quarterly installments, based on the level of the underlying cost base of the project in each period. The initial repayment of principal and accrued interest is due on September 30, 2025.

As of December 31, 2023 and 2022, the Company had $5.3 million and $4.6 million, respectively in borrowings under the Credit, all of which was classified as short-term, and includes accrued interest.

The Credit contains customary limitations on the Company and its shareholders, including its shareholders 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 filed a progress report after each of the first

four reporting periods: March 2020, December 2020, December 2021, October 2022. In April 2023, the reporting dates for the last 3 reporting periods were extended with 18 months.

In June 2023, the Company announced the discontinuance of the LAVA-051 program. This discontinuance ended the receipt of future installments. The Company is currently preparing the required Project Settlement Report because of the discontinuance of the LAVA-051 program and expect RVO to make their decision on repayment of the Innovation Credit in the second half of 2024. As a result the Company has classified the Innovation Credit as a current liability.

As of December 31, 2023, 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, 2023, 2022 and 2021 were $0.5 million, $0.4 million and $0.3 million, respectively.

Share-based compensation - Number of option and exercise price (Details)	12 Months Ended
	Dec. 31, 2023 shares Option $ / shares	Dec. 31, 2022 shares Option $ / shares	Dec. 31, 2021 Option $ / shares
Share-based compensation
Granted, Number of options \| shares	879,771	2,358,458
Weighted average share price		$ 2.94
2018 Stock Option Plan
Share-based compensation
Outstanding at Beginning, Number of options \| Option	600,457	620,347
Exercised, Number of options \| Option		(16,073)
Lapsed, Number of options \| Option		778
Forfeited, Number of options \| Option		(3,039)
Outstanding at ending, Number of options \| Option	600,457	600,457	620,347
Exercisable, Number of options \| Option	488,972
Outstanding at Beginning, Weighted average exercise price	$ 0.01	$ 0.01
Exercised, Weighted average exercise price		0.01
Lapsed, Weighted average exercise price.		0.01
Forfeited, Weighted average exercise price		0.01
Outstanding at ending, Weighted average exercise price	0.01	$ 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	1,272,079	1,563,136
Exercised, Number of options \| Option		(6,124)
Lapsed, Number of options \| Option	153,389	72,773
Forfeited, Number of options \| Option	(118,935)	(212,160)
Outstanding at ending, Number of options \| Option	999,755	1,272,079	1,563,136
Exercisable, Number of options \| Option	792,401
Outstanding at Beginning, Weighted average exercise price	$ 4.22	$ 5.90
Exercised, Weighted average exercise price		2.76
Lapsed, Weighted average exercise price.	3.75	15.00
Forfeited, Weighted average exercise price	2.76	12.96
Outstanding at ending, Weighted average exercise price	$ 4.46	$ 4.22	$ 5.90
Outstanding, Weighted average remaining contractual term	7 years 14 days	7 years 9 months 29 days	8 years 10 months 24 days
2021 Long-term Incentive Option Plan
Share-based compensation
Outstanding at Beginning, Number of options \| Option	3,407,594	1,307,150
Granted, Number of options	879,771	2,358,458
Lapsed, Number of options \| Option	204,639	20,419
Forfeited, Number of options \| Option	(422,420)	(237,595)
Outstanding at ending, Number of options	3,660,306	3,407,594	1,307,150
Exercisable, Number of options \| Option	1,158,244
Outstanding at Beginning, Weighted average exercise price	$ 4.66	$ 6.03
Granted, Weighted average exercise price	3.17	4.01
Lapsed, Weighted average exercise price.	5.69	5.16
Forfeited, Weighted average exercise price	4.50	5.80
Outstanding at ending, Weighted average exercise price	$ 4.27	$ 4.66	$ 6.03
Outstanding, Weighted average remaining contractual term	8 years 8 months 23 days	9 years 6 months 14 days	9 years 10 months 24 days
Granted, Weighted average remaining contractual term	9 years 1 month 20 days	9 years 9 months 14 days

Taxation - Reconciliation of income tax expense at statutory tax rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Taxation
Loss before income tax	$ (41,695)	$ (31,658)	$ (42,198)
Computed 25.8% tax on Loss (2021/2020: 25%)	$ (10,757)	$ (8,168)	$ (10,549)
Computed Tax rate on Loss	25.80%	25.80%	25.00%
Non-deductible costs	$ 1,268	$ 1,080	$ 982
Difference in overseas tax rates	75	72	46
Change in deferred tax asset	9,693	7,265	9,678
Total corporate tax	$ 279	$ 249	$ 157
Effective tax rate	0.70%	0.80%	0.40%

- 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

Consolidated statements of cash flows (Parenthetical) - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Consolidated statements of cash flows
Issuance of VUmc common stock (in shares)	491,352	235,664

Borrowings (Tables)

12 Months Ended

Dec. 31, 2023

Borrowings.

Schedule of borrowings


				As of December 31,
				2023		2022
	Stated				Amount, incl.		Amount, incl.
	interest				accrued		accrued
(in thousands)	rate		Maturity		interest		interest
Innovation Credit	10.0	%	9/30/2025	$	5,282	$	4,640

Current				$	5,282	$	4,640
Non-current				$	—	$	—

Accrued expenses and other current liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Accrued expenses and other current liabilities.
Research and development external project costs	$ 2,293	$ 5,399
Personnel-related expenses	1,475	1,903
Professional fees	523	486
Other	482	405
Total	$ 4,773	$ 8,193

General and administrative expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
General and administrative expenses
Personnel-related expenses	$ 3,812	$ 5,010	$ 3,800
Share-based compensation expense	3,311	2,138	3,119
Professional and consultant fees	2,869	3,954	2,593
Insurance, facilities, fees and other related costs	2,734	3,022	2,506
Total general and administrative expenses	$ 12,726	$ 14,124	$ 12,018

Borrowings - Terms (Details) - Innovation Credit - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2019
Disclosure of detailed information about borrowings [line items]
Innovation Credit received				$ 5,500
Stated interest rate	10.00%
Borrowings	$ 5,282	$ 4,640
Interest expense on borrowings and deposits, net	$ 500	$ 400	$ 300

Revenue - Summary (Details) € in Thousands, $ in Thousands	12 Months Ended
Revenue - Summary (Details) € in Thousands, $ in Thousands	Dec. 31, 2023 USD ($)	Dec. 31, 2023 EUR (€)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 EUR (€)	Dec. 31, 2021 USD ($)	Dec. 31, 2021 EUR (€)
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue from contracts with customers	$ 6,769	€ 6,769	$ 19,391	€ 19,391	$ 5,350	€ 5,350
Pfizer Inc. - Pfizer Agreement [member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue from contracts with customers		3,666		17,901
Pfizer Inc. - Additional services [member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue from contracts with customers		613
Jansen Biotech Inc. - Janssen Agreement [member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue from contracts with customers		€ 2,490		€ 1,490		€ 5,350

Revenue

12 Months Ended

Dec. 31, 2023

Revenue

Revenue

4. Revenue


	For the Year Ended December 31,
(in thousands)	2023		2022		2021
Pfizer Inc. - Pfizer Agreement	$	3,666	$	17,901	$	—
Pfizer Inc. - Additional services		613		—		—
Jansen Biotech Inc. - Janssen Agreement		2,490		1,490		5,350
	$	6,769	$	19,391	$	5,350

Pfizer Agreement

In September 2022, the Company entered the Pfizer Agreement to develop, manufacture and commercialize PF-8046052 (formerly LAVA-1223), an advanced preclinical asset that utilizes LAVA’s proprietary Gammabody technology to target EGFR-expressing solid tumors. Under the terms of the agreement, it received a $50.0 million nonrefundable upfront payment in October 2022 and could receive up to approximately $650.0 million in potential development, regulatory and commercial milestones, and royalties ranging from high single-digit to mid-teen percentages on future sales. The agreement also provides Pfizer with the opportunity to exclusively negotiate rights to apply LAVA's proprietary Gammabody platform on up to two additional tumor targets until mid-2024 for an additional payment to the Company.

The Company is entitled to receive tiered royalties based on commercial sales levels from high single-digit to mid-teen percentages of net sales of licensed products. Pfizer has also granted it a one-time option to obtain increased royalties if it exercises a buy-up option within a certain amount of time from certain key early clinical data becoming available for the first licensed product. The Company has a specified period of time after notice of such buy-up option to pay Pfizer a one-time fee of $35.0 million (buy-up fee). In the event the Company exercises the buy-up option and pays the buy-up fee, it is entitled to receive increased future royalty percentages to a range of low double-digit to high mid-teen percentages on future sales, and certain

future milestones will be decreased by 30%. The deferred revenue balance related to the buy-up option is considered as a monetary item.

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.

Under the Pfizer Agreement the Company is also entitled to receive reimbursement of up to $6.5 million for certain agreed to research, manufacturing and supply activities, as well as the transfer of all manufacturing-related know-how and materials, including all CMC documentation, data and processes, to enable the manufacture of licensed compounds and products by Pfizer. In 2023, the Company recognized $4.3 million of revenue of which $3.7 million relates to this agreement. In addition, it recognized $0.6 million of revenue for reimbursement of additional other services requested by Pfizer.

The Company determined that the Pfizer Agreement and the research, manufacturing and supply activities and materials transfer fall within the scope of IFRS 15, Revenue from Contracts with Customers (IFRS 15). In calculating the transaction price, it determined the following four performance obligations under the agreement: (i) provide exclusive license; (ii) provide manufacturing technology transfer activities; (iii) provide initial drug supply; and (iv) research activities, including data and support for regulatory submission.

The Company allocated the transaction price to the performance obligations as of December 31, 2023 and 2022 as follows:


			Revenue Recognized		Cumulative Revenue
	Transaction		for the twelve months		Recognized		Other assets as of
(in thousands)	Price		ended December 31, 2023		as of December 31, 2023		December 31, 2023
License	$	50,000	$	—	$	15,165	$	—
Manufacturing technology transfer activities		2,167		199		2,272		—
Initial supply		3,583		3,443		3,443		—
Research activities		750		24		687		—
Buy-up fee (*)		(35,000)		—		—		—
	$	21,500	$	3,666	$	21,567	$	—

(*) Buy-up fee remains deferred until option expires or is exercised

			Revenue Recognized		Cumulative Revenue
	Transaction		for the twelve months		Recognized		Other assets as of
(in thousands)	Price		ended December 31, 2022		as of December 31, 2022		December 31, 2022
License	$	50,000	$	15,165	$	15,165	$	—
Manufacturing technology transfer activities		2,167		2,073		2,073		—
Initial supply		3,583		—		—		3,309
Research activities		750		663		663		—
Buy-up fee (*)		(35,000)		—		—		—
	$	21,500	$	17,901	$	17,901	$	3,309

(*) Buy-up fee remains deferred until option expires or is exercised

For each of the performance obligations described above, the Company has determined the following methods of revenue recognition:

●

License: The Company recognizes revenue from the license at a point in time. Upon signing the Pfizer Agreement, ownership of the license was immediately transferred to Pfizer. The Company no longer has any rights to the license other than to fulfill its obligations under the Pfizer Agreement, and the Company

does not have the obligation to improve, modify or update the license transferred. As such there is no significant continued involvement in the license provided. Pfizer can begin to use and benefit from the license after effective date of the Agreement as they are now the sole ‘owner’ of the underlying patents and know-how. In connection with the license performance obligation, the Company recognized revenue of $15.2 million for the year ended December 31, 2022. See below for further discussion on the considerations of the buy-up fee.

●

Manufacturing technology transfer activities: The Company recognizes manufacturing technology transfer activities over time. These activities under the Pfizer Agreement are performed by the Company at the direction of Pfizer. As such, the Company record revenue related to these activities over time as they occur, measured based on a cost-to-cost method. Based on the manufacturing technology transfer activities performed during the year ended December 31, 2023, it recognized revenue of $0.2 million. Based on the manufacturing technology transfer activities performed during the year ended December 31, 2022, it recognized revenue and recorded a receivable of $2.1 million.

●

Initial supply: During the year ended December 31, 2023, the Company recognized $3.4 million revenue from the initial supply of drug product at a point in time. At December 31, 2022 the Company recorded $3.3 million in prepaid expenses and other current assets, representing the value of the initial supply of drug product the Company has developed. In doing so, it also reduced research and development expenses related to this drug supply previously recorded in 2022. It is obligated to transfer this initial supply to Pfizer after entering into a separate supply and materials transfer agreement with Pfizer. This supply and materials transfer agreement was executed in January 2023. During 2023, the Company transferred the initial supply of drug product to Pfizer, triggering the recognition of revenue at the point in time. After this transfer to Pfizer, it has no further rights or ownership to the drug product. It did not recognize any revenue related to the initial supply of drug product for the year ended December 31, 2022.

●

Research activities: The Company recognizes research activities over time. These activities under the Pfizer Agreement are performed by the Company at the direction of Pfizer. As such, it records revenue related to these activities over time as they occur, measured based on a cost-to-cost method. Based on the manufacturing and supply activities performed during the year ended December 31, 2023, it recognized revenue of less than $0.1 million. Based on the manufacturing and supply activities performed during the year ended December 31, 2022, it recognized revenue and recorded a receivable of $0.7 million.

●

Buy-up fee: The Company recognizes revenue from the buy-up fee at a point in time. It determined that the one-time buy-up fee of $35.0 represents variable consideration, for which it has deferred revenue recognition until such time the option is exercised or expires. Accordingly, it received the non-refundable upfront payment of $50.0 million in October 2022, and recorded a deferred revenue liability of $35.0 million on its consolidated statement of financial position as of December 31, 2022 and 2023. If it does not exercise this buy-up option, the revenue related to this performance obligation will be recognized. If it does exercise this buy-up option, this amount will be accounted for as a refund of the transaction price to the customer. The Company expects to make a decision on whether or not to exercise the buy-up option to occur in 2026.

Janssen Agreement

In May 2020, the Company entered into a research collaboration and license agreement (Janssen Agreement) with Janssen Biotech, Inc. (Janssen). As part of the Janssen Agreement, the Company received a non-refundable upfront payment of $8.0 million, which was recognized on a straight-line basis over the two-year term of the research activities under the agreement. The straight-line method of recognition materially approximates the cost-to-cost method of revenue recognition. As of December 31, 2023, the Company had no remaining unearned income related to this 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 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.

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 these development milestones was recognized at the point in time the milestone was achieved.

In May 2023, a milestone payment of $ 2.5 million from Janssen was triggered under the terms of the Janssen Agreement following selection of a lead bispecific antibody utilizing the Gammabody platform for an undisclosed tumor associated antigen for the treatment of cancer. Efforts are underway to advance the candidate towards the clinic. This milestone payment was recognized as revenue and the payment of the $2.5 million milestone was received in July 2023. No milestone revenue was recognized in the year ended December 31, 2022.

Deferred Revenue

The Company’s deferred revenue balance relates to amounts received, but not yet earned under both the Janssen Agreement and Pfizer Agreement as described above. As of December 31, 2021, the deferred revenue balance related only to the Janssen Agreement, which was fully recognized in 2022. As of December 31, 2022, the Company established a deferred revenue balance related to the Pfizer Agreement buy-up option as described above. The buy-up option to pay a one-time fee of $35.0 million to Pfizer is considered as a monetary item. The following table presents changes in the deferred revenue balance:


(in thousands)
Balance at January 1, 2022	$	(1,527)
Deferral of revenue		(35,000)
Recognized during the period		1,490
Foreign currency translation difference		37
Balance at December 31, 2022		(35,000)
Deferral of revenue		—
Recognized during the period		—
Foreign currency translation difference		—
Balance at December 31, 2023		(35,000)

Summary of significant accounting policies (Tables)

12 Months Ended

Dec. 31, 2023

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

Subsequent Events

12 Months Ended

Dec. 31, 2023

Events after the reporting date

Disclosure of events after reporting period [text block]

In January 2024, the Company announced it had entered into a clinical trial collaboration and supply agreement with Merck & Co., Inc. to evaluate its anti-PD-1 therapy KEYTRUDA® (pembrolizumab) in combination with LAVA-1207. Under the terms of this agreement, we will be provided with pembrolizumab for the dose escalation and expansion phases of our ongoing Phase 1/2a study of LAVA-1207 (NCT05369000) (KEYNOTE-F73), with the combination arm expected to be initiated in the first half of 2024. Other than providing pembrolizumab to the Company for the Company’s ongoing LAVA 1207 1/2a study, the collaboration with Merck & Co., Inc does not have any financial impact on the Company.

Share-based compensation (Tables)

12 Months Ended

Dec. 31, 2023

Share-based compensation

Schedule of information about share-based awards

The following table provides information about share-based awards as of December 31, 2023 and 2022:


	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, 2022	620,347	0.01	*()**	1,563,136	5.90	8.90	1,307,150	6.03	9.90
Granted	—	—		—	—		2,358,458	4.01	9.79
Exercised	(16,073)	0.01		(6,124)	2.76		—	—
Lapsed	(778)	0.01		(72,773)	15.00		(20,419)	5.16
Forfeited	(3,039)	0.01		(212,160)	12.96		(237,595)	5.80
Outstanding at December 31, 2022	600,457	0.01	*()**	1,272,079	4.22	7.83	3,407,594	4.66	9.54
Granted	—	—		—	—		879,771	3.17	9.14
Exercised	—	—		—	—		—	—
Lapsed	—	—		(153,389)	3.75		(204,639)	5.69
Forfeited	—	—		(118,935)	2.76		(422,420)	4.50
Outstanding at December 31, 2023	600,457	0.01	*()**	999,755	4.46	7.04	3,660,306	4.27	8.73
Exercisable at December 31, 2023	488,972			792,401			1,158,244
(*) 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, 2023, 2022 and 2021:


		December 31, 2023	December 31, 2022		December 31, 2021
		NL & US	NL & US		NL		US
Expected annual average volatility		88.4%		83.9%		80.1%		80.1%
Expected life, years		6.08		6.08		6.08		6.08
Fair value of the share options	$	1.06 - 2.92	$	1.71 - 3.91	$	3.42 - 5.23	$	3.12 - 8.71
Exercise price	$	1.40 - 3.86	$	2.34 - 5.50	$	5.10 - 7.77	$	5.10 - 15.00
Dividend yield		—		—		—		—
Risk-free interest rate		3.46% - 4.98%		1.65% - 3.78%		(0.30%) - (0.53%)		0.94% - 1.34%
Weighted average grant date fair value	$	2.39	$	4.01	$	3.61	$	5.95

Corporate and Company information (Tables)

12 Months Ended

Dec. 31, 2023

Corporate and Company information

Schedule of percentage of equity interest in subsidiary


			% of equity interest
Name	Legal seat	Country of incorporation	2023		2022
Lava Therapeutics N.V.	Utrecht	The Netherlands	100	%	100	%
Lava Therapeutics Inc.	Delaware	United States of America	100	%	100	%

Earnings per share (EPS)

12 Months Ended

Dec. 31, 2023

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. Vested share-based awards for little to no consideration are considered as issuable common shares, and therefore included in the common shares outstanding.

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, adjusted for the effects of potentially dilutive share-based awards.

As of December 31, 2023, 2022 and 2021, potentially dilutive share-based awards for a total number of zero, 593,555 and 250,149, respectively, were excluded from the calculation of the diluted weighted average number of common shares outstanding, because their effect on the loss per share 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)	2023		2022		2021
Loss for the year	$	(41,974)	$	(31,907)	$	(42,355)
Weighted average number of common shares		26,732,556		25,924,005		19,758,169
Basic and diluted loss per share	$	(1.57)	$	(1.23)	$	(2.14)

Foreign currency exchange gain (loss), net (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Foreign currency exchange gain (loss), net
Foreign currency exchange loss, net	$ 1,400,000
Foreign currency exchange gain, net		$ 2,900,000	$ 2,000,000.0

Consolidated statements of changes in equity (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Stock issued price per share	$ 2.94
IPO
Stock issued price per share		$ 15.00
Issuance costs		$ 11,500
Series C Preference Shares
Stock issued price per share		$ 6.22
Issuance costs		$ 92

Interest (income) expense, net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Interest (income) expense, net
Interest (income) expense on borrowings and deposits, net	$ (3,202)	$ (339)	$ 564
Interest expense related to leases	232	82	61
Total interest (income) expense, net	$ (2,970)	$ (257)	$ 625

Subsequent Events (Details)	Dec. 31, 2023 USD ($)
Achievement of clinical development milestone [member]
Disclosure of non-adjusting events after reporting period [line items]
Milestone Payment Receivable	$ 7,000,000

Leases (Tables)

12 Months Ended

Dec. 31, 2023

Leases

Schedule of right-of-use assets


(in thousands)
Balance at January 1, 2022	$	501
Additions		400
Depreciation charges		(277)
Foreign currency exchange difference		27
Balance at December 31, 2022		651
Additions		825
Depreciation charges		(662)
Foreign currency exchange difference		78
Balance at December 31, 2023	$	892

Schedule of maturities of lease liabilities


(in thousands)
2024	$	550
2025		442
2026		201
2027		—
Total lease commitments		1,193
Less: imputed lease interest		(162)
Total lease liabilities	$	1,031
Current portion	$	440
Non-current portion	$	591

Commitments and Contingencies

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies

Commitments and Contingencies

23.	Commitments and Contingencies

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. 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 any current legal matters will not have a material adverse impact on its financial position or results of operations.

Contingent liabilities and commitments

In January 2017, the Company entered into an agreement with the Amsterdam UMC (formerly VUmc prior to its merger with UMC effective January 2024 (the Amsterdam UMC Agreement)) under which the Amsterdam UMC granted the Company an exclusive, although non-exclusive with respect to certain intangible know-how, worldwide, sublicensable license for certain patent rights and know-how owned by Amsterdam UMC, effectively including research and other services provided in collaboration by Amsterdam UMC to develop, make, and sell licensed products related to such patent rights and know-how. Amsterdam UMC 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.

The Company is obligated to pay Amsterdam UMC 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.

Related parties

12 Months Ended

Dec. 31, 2023

Related parties

Related parties

21.	Related parties

Key management compensation

Key management includes members of its 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 is presented below for the years ended December 31, 2023, 2022 and 2021. 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)	2023		2022		2021
Key management compensation
Short term employee benefits	$	3,586	$	2,673	$	3,099
Share-based payments		3,503		1,994		2,702
Post-employment benefits		104		108		92
	$	7,193	$	4,775	$	5,893

Director and shareholder compensation

A member of its board of directors and existing shareholder received consultancy fees. The compensation paid to this individual is presented below for the years ended December 31, 2023, 2022, and 2021. As of December 31, 2023, 2022, and 2021, 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)	2023		2022		2021
Director and shareholder compensation
Board fees	$	360	$	320	$	227
Consultancy fees		—		—		20
	$	360	$	320	$	247

Corporate and Company information

12 Months Ended

Dec. 31, 2023

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 62, 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, it changed its business structure from a private limited company (besloten vennootschap) to a limited liability public company (naamloze vennootschap), and consequently, its name changed from “LAVA Therapeutics B.V.” to “LAVA Therapeutics N.V.”

The Company is a clinical-stage immuno-oncology company dedicated to rapidly developing new cancer treatments that leverage the immune system to save patients’ lives. Using its Gammabody platform,the Company is developing a portfolio of novel bispecific and multispecific 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 20, 2024.

1.2 Company information

The consolidated financial statements of the Company include:


			% of equity interest
Name	Legal seat	Country of incorporation	2023		2022
Lava Therapeutics N.V.	Utrecht	The Netherlands	100	%	100	%
Lava Therapeutics Inc.	Delaware	United States of America	100	%	100	%

The 100% subsidiary, LAVA Therapeutics, Inc., 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.

Taxation - Other (Details) - USD ($)	12 Months Ended
Taxation - Other (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Taxation
Income tax expense	$ (279,000)	$ (249,000)	$ (157,000)
Tax loss carryforwards	70,322,000	$ 5,900,000	$ 5,746,000
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

Financial instruments, risk management and capital management

12 Months Ended

Dec. 31, 2023

Financial instruments, risk management and capital management

Financial instruments, risk management and capital management

22.	Financial instruments, risk management and capital management

22.1Financial 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.

22.2Financial risk management


		As of December 31,
(in thousands)	2023		2022
Financial assets measured at amortized cost
Cash and cash equivalents (Note 14)	$	44,231	$	100,333
Investments (Note 13)		51,340		32,535
Other non-current assets and security deposits		319		809
Receivables and other		1,459		3,254
Total financial assets	$	97,349	$	136,931

Financial liabilities measured at amortized cost
Borrowings (Note 16)	$	5,282	$	4,640
Trade payables and other (Note 17)		4,446		3,965
Accrued expenses and other current liabilities (Note 18)		4,773		8,193
Lease liabilities (Note 12)		1,031		810
Total financial liabilities	$	15,532	$	17,608

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

22.2.1Market 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 12 months.

The Company does not enter into any derivative financial instruments to manage its exposure to foreign currency risk and interest rate risk. During 2023, the foreign currency exchange rate between USD and EUR fluctuated throughout the year, with a 7.4% difference between the high and low rates, which had an impact

on the results of our operations presented in USD, including foreign currency exchange losses of $1.4 million for the year ended December 31, 2023. Continued variations in exchange rates similar to this could have impacted its loss for the year by approximately $5.9 million as additional gain or loss. Due to the nature of its investment portfolio and other financial instruments, the Company does not believe an immediate 1.0% increase in interest rates would have a material effect on the fair market value of our portfolio, and accordingly the Company does not expect a sudden change in market interest rates to affect materially our operating results or cash flows.

22.2.2Credit risk

Cash and cash equivalents

The Company held cash and cash equivalents as of December 31, 2023 and 2022 of $44.2 million and $100.3 million, respectively.

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 three banks. Cash and cash equivalents, and short-term marketable securities are financial instruments that potentially subject the Company to concentrations of credit risk. As of December 31, 2023 and 2022, its cash consists of cash deposited with three financial institutions and account balances may exceed insured limits.

On March 10, 2023, Silicon Valley Bank, Santa Clara, California, or SVB, was closed by the California Department of Financial Protection and Innovation and the Federal Deposit Insurance Corporation, or FDIC, was appointed receiver. On March 26, 2023, First–Citizens Bank & Trust Company, Raleigh, North Carolina, or First Citizens, purchased all deposits and loans of SVB, and the former SVB reopened as First-Citizens Bank & Trust Company on Monday, March 27, 2023. The Company had a banking relationship with SVB, including $32.0 million as of December 31, 2022 held in Euros. Although most SVB depositors received full access to their funds on March 13, 2023, the Company had disrupted and delayed access to funds held in multi-currency accounts while the systems’ conversions were being completed to allow full–service banking, which has been resolved. As of December 31, 2023 the Company had no cash held at SVB as First-Citizens Bank & Trust Company. The majority of its cash is held at other financial institutions that can be used to fund operations. Management believes that the Company is not currently exposed to significant credit risk due to the financial strength of these institutions.

Investments

The Company invests its cash in accordance with a policy objective that seeks to ensure both liquidity and safety of principal. The policy limits investments to instruments issued by the U.S. government, certain SEC-registered money market funds that invest only in U.S. government obligations and various other low-risk liquid investment options, and places restrictions on portfolio maturity terms. The Company does not believe its current investments give rise to a material credit risk.

22.3	Capital management

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

The Company’s capital structure consists of net debt (leases as detailed in Note 12 and 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, its 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, 2023.

22.4

Liquidity Risk

As of December 31, 2023, the Company held cash, cash equivalents, and investments of $95.6 million, which it believes is sufficient to service its current liabilities of $14.9 million, as well as fund its operations for at least the next 12 months. Refer to Note 2, “Going Concern” for additional information. The Company does not believe it is exposed to material liquidity risk as of December 31, 2023.

Commitments and Contingencies (Details) - shares	12 Months Ended
Commitments and Contingencies (Details) - shares	Dec. 31, 2022	Dec. 31, 2021
Commitments and Contingencies
Issuance of VUmc common stock (in shares)	491,352	235,664

Cash and cash equivalents

12 Months Ended

Dec. 31, 2022

Cash and cash equivalent

Cash and cash equivalents

14. Cash and cash equivalents


		As of December 31,
(in thousands)		2023		2022
Short-term deposits	$	10,326	$	9,965
Current bank accounts		33,905		90,368
	$	44,231	$	100,333

Short-term deposits are made for varying periods of between one day and three months, depending on its immediate cash requirements, and earn interest at the respective short-term deposit rates. Information about the credit risk over cash and cash equivalents is presented in Note 22.

Investments

12 Months Ended

Dec. 31, 2023

Investments.

Investments

13. Investments

The Company’s investments in debt securities consist of investments in U.S. Treasury securities, with maturities ranging from three months to one year. All of these investments are classified as held to maturity and recorded in current assets on the Company’s consolidated statements of financial position at amortized cost. As of December 31, 2023, the carrying value of the Company’s investments was $51.3 million, which approximates fair value. Given the high quality ratings of these investments in debt securities, the Company has not recorded an allowance for credit losses as of December 31, 2023.

Cash and cash equivalents (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash and cash equivalent
Short-term deposits	$ 10,326	$ 9,965
Current bank accounts	33,905	90,368
Total	$ 44,231	$ 100,333	$ 90,869	$ 15,818

Leases - Maturities of lease liabilities (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of quantitative information about right-of-use assets [line items]
Total lease commitments	$ 1,193,000
Less: imputed lease interest	(162,000)
Total lease liabilities	1,031,000
Current portion	440,000	$ 379,000
Non-current portion	$ 591,000	$ 431,000
Average incremental borrowing rate applied to the lease liabilities	15.60%	15.69%
Cash outflows related to leases	$ 1,000,000.0	$ 300,000	$ 300,000
2024
Disclosure of quantitative information about right-of-use assets [line items]
Total lease commitments	550,000
2025
Disclosure of quantitative information about right-of-use assets [line items]
Total lease commitments	442,000
2026
Disclosure of quantitative information about right-of-use assets [line items]
Total lease commitments	$ 201,000

Borrowings - Summary (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Disclosure of detailed information about borrowings [line items]
Current borrowings	$ 5,282	$ 4,640
Innovation Credit
Disclosure of detailed information about borrowings [line items]
Stated interest rate	10.00%
Borrowings	$ 5,282	$ 4,640

Property and equipment (Details) - USD ($) $ in Thousands	12 Months Ended
Property and equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Disclosure of detailed information about property, plant and equipment [line items]
Balance, at beginning of the period	$ 1,432
Balance, at end of the period	1,602	$ 1,432
Gross carrying amount [member]
Disclosure of detailed information about property, plant and equipment [line items]
Balance, at beginning of the period	2,536	2,075
Additions	730	587
Disposal	(35)
Foreign currency translation adjustment	106	(126)
Balance, at end of the period	3,337	2,536
Accumulated depreciation, amortisation and impairment [member]
Disclosure of detailed information about property, plant and equipment [line items]
Balance, at beginning of the period	(1,104)	(630)
Disposal	35
Foreign currency translation adjustment	50	(30)
Charge for the year	616	504
Balance, at end of the period	(1,735)	(1,104)
Building improvements
Disclosure of detailed information about property, plant and equipment [line items]
Balance, at beginning of the period	12
Balance, at end of the period	248	12
Building improvements \| Gross carrying amount [member]
Disclosure of detailed information about property, plant and equipment [line items]
Balance, at beginning of the period	117	123
Additions	275
Disposal	(23)
Foreign currency translation adjustment	9	(6)
Balance, at end of the period	378	117
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	(105)	(19)
Disposal	23
Foreign currency translation adjustment	4	(1)
Charge for the year	44	87
Balance, at end of the period	(130)	(105)
Laboratory equipment
Disclosure of detailed information about property, plant and equipment [line items]
Balance, at beginning of the period	1,263
Balance, at end of the period	1,187	1,263
Laboratory equipment \| Gross carrying amount [member]
Disclosure of detailed information about property, plant and equipment [line items]
Balance, at beginning of the period	2,141	1,724
Additions	388	525
Disposal	(12)
Foreign currency translation adjustment	81	(108)
Balance, at end of the period	2,598	2,141
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	(878)	(538)
Disposal	12
Foreign currency translation adjustment	40	(26)
Charge for the year	505	366
Balance, at end of the period	(1,411)	(878)
Office equipment
Disclosure of detailed information about property, plant and equipment [line items]
Balance, at beginning of the period	16
Balance, at end of the period	30	16
Office equipment \| Gross carrying amount [member]
Disclosure of detailed information about property, plant and equipment [line items]
Balance, at beginning of the period	40	36
Additions	25	6
Foreign currency translation adjustment	2	(2)
Balance, at end of the period	67	40
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	(24)	(16)
Foreign currency translation adjustment	1
Charge for the year	12	8
Balance, at end of the period	(37)	(24)
Information and communication equipment (ICT)
Disclosure of detailed information about property, plant and equipment [line items]
Balance, at beginning of the period	141
Balance, at end of the period	137	141
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	238	192
Additions	42	56
Foreign currency translation adjustment	14	(10)
Balance, at end of the period	294	238
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	(97)	(57)
Foreign currency translation adjustment	5	(3)
Charge for the year	55	43
Balance, at end of the period	$ (157)	$ (97)

Document and Entity Information	12 Months Ended
Document and Entity Information	Dec. 31, 2023 shares
Document Information [Line Items]
Document Type	20-F
Document Registration Statement	false
Document Shell Company Report	false
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2023
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 62
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
Document Financial Statement Error Correction [Flag]	false
Entity Common Stock, Shares Outstanding	26,289,087
Entity Central Index Key	0001840748
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Amendment Flag	false
ICFR Auditor Attestation Flag	false
Document Accounting Standard	International Financial Reporting Standards
Auditor Name	PricewaterhouseCoopers
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

Taxation (Tables)

12 Months Ended

Dec. 31, 2023

Taxation

Schedule of unrecognized tax-losses incurred


(in thousands)	Loss per year
2017	$	860
2018		2,749
2019		1,081
2020		—
2021		12,230
2022		269
2023		53,133
	$	70,322

Schedule of the reconciliation of income tax expense at statutory tax rate and the income expenses as reported in the consolidated statement of loss and other comprehensive income


	For the Year Ended December 31,
(in thousands)	2023		2022		2021
Loss before income tax	$	(41,695)	$	(31,658)	$	(42,198)
Computed 25.8% tax on Loss (2022: 25.8% 2021: 25%)		(10,757)		(8,168)		(10,549)

Tax effect of:
Non-deductible costs		1,268		1,080		982
Difference in overseas tax rates		75		72		46
Change in unrecognized deferred tax asset		9,693		7,265		9,678
Total corporate tax	$	279	$	249	$	157

Effective tax rate		0.7%		0.8%		0.4%

	For the Year Ended December 31,
(in thousands)	2023		2022		2021
Current tax on result	$	279	$	249	$	139
Deferred tax prior years		—		—		18
Total corporate tax expense	$	279	$	249	$	157

Schedule of unrecognized deferred tax assets


	For the Year Ended December 31,
(in thousands)	2023		2022		2021
Deductible temporary differences	$	86,887	$	83,933	$	59,683
Tax losses		70,322		5,900		5,746
Total unrecognized deferred tax assets	$	157,209	$	89,833	$	65,429

Total tax effect 25.8% (2022: 25.8% 2021: 25%)	$	40,560	$	23,177	$	16,357

Schedule of recognized deferred tax assets and liabilities


	For the Year Ended December 31,
(in thousands)	2023		2022		2021
Deferred Tax Asset - Lease Liability	$	230	$	168	$	125
Deferred Tax Liability - Lease Right-of-use assets		(230)		(168)		(125)
Total net deferred tax asset	$	—	$	—	$	—

Consolidated statements of financial position - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Non-current assets:
Property and equipment, net	$ 1,602	$ 1,432
Right-of-use assets	892	651
Other non-current assets and security deposits	319	809
Total non-current assets	2,813	2,892
Current assets:
Receivables and other	1,459	3,254
Prepaid expenses and other current assets	1,627	4,411
VAT receivable	240
Investments	51,340	32,535
Cash and cash equivalents	44,231	100,333
Total current assets	98,897	140,533
Total assets	101,710	143,425
Equity:
Share capital	3,715	3,715
Equity-settled employee benefits reserve	12,005	8,942
Foreign currency translation reserve	(10,899)	(12,972)
Additional paid-in capital	194,424	194,424
Accumulated deficit	(148,067)	(108,069)
Total equity	51,178	86,040
Non-current liabilities:
Deferred revenue	35,000	35,000
Lease liabilities	591	431
Total non-current liabilities	35,591	35,431
Current liabilities:
Trade payables and other	4,446	3,965
VAT payable		45
Borrowings	5,282	4,640
Lease liabilities	440	379
License liabilities		4,732
Accrued expenses and other current liabilities	4,773	8,193
Total current liabilities	14,941	21,954
Total liabilities	50,532	57,385
Total equity and liabilities	$ 101,710	$ 143,425

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

12 Months Ended

Dec. 31, 2023

Share capital, share premium and other capital reserves

Schedule of share capital

The following table provides information about its share capital as of December 31, 2023, 2022 and 2021:

(in thousands, except

Authorized

Issued and fully paid

Additional paid-in capital

for share and per

December 31,

share amounts)

2023

2022

2021

2023

2022

2021

2023

2022

2021

Preference shares of $0.14 each

45,000,000

—

Common shares of $0.14 each

45,000,000

26,289,087

25,775,538

194,424

192,270

90,000,000

26,289,087

25,775,538

194,424

192,270

Schedule of major shareholders on a non-diluted basis


	As of December 31,
	2023		2022
Gilde Healthcare	20.6	%	20.6	%
Versant Venture Capital VI, L.P.	17.5		17.5
Redmile Biopharma Investments	7.9		10.6
Sanofi Foreign Participations B.V.	7.3		7.3
Novo Holdings A/S	7.1		12.7
Other shareholders	39.6		31.3
	100.0	%	100.0	%

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 IPO	Additional paid-in capital Over-Allotment Option	Additional paid-in capital	Accumulated deficit	Series A Preference Shares	Series B Preference Shares	Series C Preference Shares	IPO	Over-Allotment Option	Total
Beginning Balance at Dec. 31, 2020				$ 722	$ 18,340	$ 22,026	$ 922	$ (581)				$ (33,807)						$ 7,622
Beginning Balance (in shares) at Dec. 31, 2020			281,775										1,037,595	3,899,766	4,133,805
Loss for period												(42,355)						(42,355)
Share split			$ 1,308	(143)	(536)	(589)					$ (40)
Issuance of stock	$ 947	$ 61	1,425			60,373			$ 87,779	$ 5,877						$ 88,726	$ 5,939	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							3,907											$ 3,907
Foreign currency translation adjustment								(5,642)										(5,642)
Ending balance at Dec. 31, 2021			$ 3,653				4,829	(6,223)			192,270	(76,162)						118,367
Ending balance (in shares) at Dec. 31, 2021			25,775,538
Loss for period												(31,907)						(31,907)
Option exercises			$ 3								12							$ 15
Option exercises (in shares)			22,197															22,197
Issuance of VUmc common stock			$ 59								2,142							$ 2,201
Issuance of VUmc common stock (in shares)			491,352															491,352
Share-based compensation expense							4,113											$ 4,113
Foreign currency translation adjustment								(6,749)										(6,749)
Ending balance at Dec. 31, 2022			$ 3,715				8,942	(12,972)			194,424	(108,069)						86,040
Ending balance (in shares) at Dec. 31, 2022			26,289,087
Loss for period												(41,974)						$ (41,974)
Option exercises (in shares)																		0
Share-based compensation expense							(1,976)					1,976
Foreign currency translation adjustment								2,073										$ 2,073
Forfeited options							5,039											5,039
Ending balance at Dec. 31, 2023			$ 3,715				$ 12,005	$ (10,899)			$ 194,424	$ (148,067)						$ 51,178
Ending balance (in shares) at Dec. 31, 2023			26,289,087

Share capital, share premium and other capital reserves - Summary (Details) - USD ($) $ / shares in Units, $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share capital, share premium and other capital reserves
Authorized	90,000,000	90,000,000	90,000,000
Issued and fully paid	26,289,087	26,289,087	25,775,538
Additional paid-in capital	$ 194,424	$ 194,424	$ 192,270
Common share
Share capital, share premium and other capital reserves
Par value	$ 0.14	$ 0.14	$ 0.14
Authorized	45,000,000	45,000,000	45,000,000
Issued and fully paid	26,289,087	26,289,087	25,775,538
Additional paid-in capital	$ 194,424	$ 194,424	$ 192,270
Preference share
Share capital, share premium and other capital reserves
Par value	$ 0.14
Authorized	45,000,000	45,000,000	45,000,000

Share-based compensation - Narratives (Details) $ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($) shares	Dec. 31, 2022 USD ($) shares	Dec. 31, 2021 USD ($)
Share-based compensation
Number of shares granted \| shares	879,771	2,358,458
Share-based compensation expenses	$ 5.0	$ 4.1	$ 3.9
Equity settled employee benefits reserve	$ 2.0
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 one
Share-based compensation
Vesting period	36 months
Vesting percentage	25.00%
Vesting percentage of remaining awards	75.00%
Vesting percentage total	100.00%
Vesting schemes two
Share-based compensation
Vesting period	48 months
Vesting percentage total	100.00%
Vesting schemes three
Share-based compensation
Vesting period	12 months
Vesting percentage total	100.00%

Corporate and Company information (Details)	12 Months Ended
Corporate and Company information (Details)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
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%	100.00%

Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Disclosure of fair value measurement of assets [line items]
Held to maturity investments	$ 51,340	$ 32,535
Fair value
Disclosure of fair value measurement of assets [line items]
Held to maturity investments	$ 51,340

Research and development expenses

12 Months Ended

Dec. 31, 2023

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)	2023		2022		2021
Pre-clinical and clinical trial expenses	$	20,421	$	28,178	$	14,188
Personnel-related expenses		6,629		6,150		4,955
Research and development activities expenses		2,680		2,241		1,843
Facilities and other research and development expenses		2,356		1,546		814
Share-based compensation expense		1,728		1,975		788
Amsterdam UMC and other license expenses		-		15		14,357
	$	33,814	$	40,105	$	36,945

Refer to Note 23 for additional information about Amsterdam UMC license expenses. Government grants, which are a reduction of payroll taxes in the Netherlands, amounted to $2.0 million in 2023, $1.6 million in 2022 and $1.7 million in 2021. These amounts are an offset to wages and salaries that are part of its research and development expenses in the income statement.

Material accounting judgments, estimates and assumptions (Details)	12 Months Ended			36 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2023
Material accounting judgments, estimates and assumptions
Innovation Box tax rate	9.00%			9.00%
General headline rate	25.80%	25.80%	25.00%

Recognized deferred tax assets and liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Lease Liability [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred Tax asset - Lease Liability.	$ 230	$ 168	$ 125
Lease Right-of-use assets [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred Tax Liability - Lease Right-of-use assets	$ 230	$ 168	$ 125

Related parties - Key management compensation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Related parties
Short term employee benefits	$ 3,586	$ 2,673	$ 3,099
Share-based payments	3,503	1,994	2,702
Post-employment benefits	104	108	92
Total key management compensation	$ 7,193	$ 4,775	$ 5,893

Taxation

12 Months Ended

Dec. 31, 2023

Taxation

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, 2023 the Company has Dutch tax loss carryforwards of $70.3 million. The 2023 and 2022 taxable amounts are not final as the 2023 and 2022 Dutch corporate income tax returns are still in draft. The 2021 Dutch corporate income tax return is final and has been filed in time.

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 utilization of these losses with taxable income in the future is however limited to 50% of the taxable amount that exceeds EUR 1 million.

The following table provides an overview of its unrecognized tax loss carryforwards by year:


(in thousands)	Loss per year
2017	$	860
2018		2,749
2019		1,081
2020		—
2021		12,230
2022		269
2023		53,133
	$	70,322

effective rate for Innovation Box profits is 9%. The Company applied for the Innovation Box and its request is currently under final review with the Dutch Tax Authorities. For tax purposes, the Company expensed capitalized IP development costs of $14.8 million in the year ended December 31, 2023 and the Company capitalized IP development costs of $27.8 million and $33.9 million in its draft tax return for the year ended 2022 and final tax return for the year ended 2021, respectively. In total, $72.1 million of IP development costs was capitalized. This amount will reduce future taxable income due to future tax amortization of capitalized IP development costs. The deferred tax asset in this regard has not been recognized.

Deferred income tax assets can only be recognized for tax losses and capitalization of IP development costs for Dutch corporate tax purposes 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 us. 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 and deduction of capitalized IP development costs 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 prolonged with 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 the Company’s 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.

Reconciliation of income tax expense at statutory tax rate and the income expenses as reported in the consolidated statement of loss and other comprehensive income is as follows:


	For the Year Ended December 31,
(in thousands)	2023		2022		2021
Loss before income tax	$	(41,695)	$	(31,658)	$	(42,198)
Computed 25.8% tax on Loss (2022: 25.8% 2021: 25%)		(10,757)		(8,168)		(10,549)

Tax effect of:
Non-deductible costs		1,268		1,080		982
Difference in overseas tax rates		75		72		46
Change in unrecognized deferred tax asset		9,693		7,265		9,678
Total corporate tax	$	279	$	249	$	157

Effective tax rate		0.7%		0.8%		0.4%

	For the Year Ended December 31,
(in thousands)	2023		2022		2021
Current tax on result	$	279	$	249	$	139
Deferred tax prior years		—		—		18
Total corporate tax expense	$	279	$	249	$	157

On the basis of the 2023 annual accounts, there are accounting-to-tax differences of $9.7 million. These differences primarily relate to the amortization of IP development costs capitalized for Dutch corporate income tax purposes in preceding years, the capitalization of IP development costs incurred in 2023 for Dutch corporate income tax purposes and IFRS 16 lease amounts. Other differences relate to non-deductible share-

based payment expenses, expenses which were treated as non-deductible for Dutch corporate income tax purposes and other non-deductible mixed expenses.

Recognized deferred tax assets and liabilities

Deferred tax assets and liabilities have been recognized in respect of the following items related to the temporary differences of the IFRS 16 Leases.


	For the Year Ended December 31,
(in thousands)	2023		2022		2021
Deferred Tax Asset - Lease Liability	$	230	$	168	$	125
Deferred Tax Liability - Lease Right-of-use assets		(230)		(168)		(125)
Total net deferred tax asset	$	—	$	—	$	—

The valuation of the deferred tax asset on the lease liability was maximized to the value of the corresponding deferred tax liability on the lease right of use assets. The unrecognized part of the deferred tax asset on the lease liability is included in the item deductible temporary differences of the unrecognized deferred tax assets as presented below, because it is not probable that future taxable profit will be available against which the Company can use the benefit therefrom.

Unrecognized deferred tax assets

Deferred tax assets have not been recognized in respect of the following items, because it is not probable that future taxable profit will be available against which the Company can use the benefit therefrom.


	For the Year Ended December 31,
(in thousands)	2023		2022		2021
Deductible temporary differences	$	86,887	$	83,933	$	59,683
Tax losses		70,322		5,900		5,746
Total unrecognized deferred tax assets	$	157,209	$	89,833	$	65,429

Total tax effect 25.8% (2022: 25.8% 2021: 25%)	$	40,560	$	23,177	$	16,357

Research and development expenses (Details) - USD ($)	12 Months Ended
Research and development expenses (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Research and development expenses
Pre-clinical and clinical trial expenses	$ 20,421,000	$ 28,178,000	$ 14,188,000
Personnel-related expenses	6,629,000	6,150,000	4,955,000
Research and development activities expenses	2,680,000	2,241,000	1,843,000
Facilities and other research and development expenses	2,356,000	1,546,000	814,000
Share-based compensation expense	1,728,000	1,975,000	788,000
VUmc and other license expenses		15,000	14,357,000
Total research and development expenses	33,814,000	40,105,000	36,945,000
Government grants	$ 2,000,000.0	$ 1,600,000	$ 1,700,000

Taxation - Tax-losses carry forward (Details) - USD ($) $ in Thousands	12 Months Ended			36 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2023
Taxation
Tax loss carryforwards	$ 70,322	$ 5,900	$ 5,746	$ 70,322
Effective rate for Innovation Box profits	9.00%			9.00%
Amount of tax returns		$ 27,800	$ 33,900
IP development costs	$ 72,100
IP Capitalized Development Costs Expensed	14,800
Accounting-to-tax differences
Taxation
Accounting-to-tax differences	(9,700)			$ (9,700)
2017
Taxation
Tax loss carryforwards	860			860
2018
Taxation
Tax loss carryforwards	2,749			2,749
2019
Taxation
Tax loss carryforwards	1,081			1,081
2021
Taxation
Tax loss carryforwards	12,230			12,230
2022
Taxation
Tax loss carryforwards	269			269
2023
Taxation
Tax loss carryforwards	$ 53,133			$ 53,133

Restructuring

12 Months Ended

Dec. 31, 2023

Restructuring

Restructuring

19. Restructuring

In June 2023, the Company announced that the clinical trial of LAVA-051 targeting the CD1d-expressing hematological tumors, multiple myeloma (MM), chronic lymphocytic leukemia (CLL), and acute myeloid leukemia, is no longer recruiting and would be discontinued after no patients remain on treatment. LAVA-051 was being evaluated in an open-label, multi-center Phase 1/2a clinical trial in patients with relapsed or refractory CLL and MM to evaluate the safety, tolerability, pharmacokinetics, pharmacodynamics, immunogenicity, and preliminary anti-tumor activity of LAVA-051. The decision to discontinue the LAVA-051 clinical trial followed a review of the competitive landscape that has continued to evolve. The decision was not due to safety concerns. As a result of the discontinuation, the Company expensed $1.4 million in June 2023 for costs associated with contract manufacturing and bioanalytical activities for LAVA-051. Of this accrual, invoices have been received for an amount of $1.0 million in 2023 and the remaining accrual of $0.4 million is recorded in accrued expenses and other current liabilities on its consolidated statements of financial position as of December 31, 2023. The Company reviewed the relevant items of its consolidated statements of financial position and did not identify any asset that would be subject to impairment as a result of the discontinuation of the clinical trial of LAVA-051.

In August 2023, the Company finalized a reduction in workforce of approximately 36% in the United States and the Netherlands to better align the Company’s resources with the Company’s focus on LAVA-1207 and redesigned focus on research and development. In connection with the reduction in force, the Company expensed $0.5 million, during the year ended December 31, 2023. The implementation of headcount reductions, including cash payments, was completed by the end of 2023.

Restructuring (Details) $ in Millions	1 Months Ended	12 Months Ended
Restructuring (Details) $ in Millions	Aug. 31, 2023	Dec. 31, 2023 USD ($)	Jun. 30, 2023 USD ($)
LAVA-051 [Member]
Restructuring
Accruals		$ 0.4	$ 1.4
Invoices received		1.0
Provision for discontinuance of ongoing clinical trial of LAVA-051
Restructuring
Percentage of reduction in workforce U S and the Netherlands	36
Changes in provision		$ 0.5

General and administrative expenses (Tables)

12 Months Ended

Dec. 31, 2023

General and administrative expenses

Schedule of general and administrative expenses


	For the Year Ended December 31,
(in thousands)	2023		2022		2021
Personnel-related expenses	$	3,812	$	5,010	$	3,800
Share-based compensation expense		3,311		2,138		3,119
Professional and consultant fees		2,869		3,954		2,593
Insurance, facilities, fees and other related costs		2,734		3,022		2,506
	$	12,726	$	14,124	$	12,018

Trade payables and other (Details) - USD ($) $ in Thousands	12 Months Ended
Trade payables and other (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Trade and Other Payables [Line Items]
Trade payables and other	$ 4,446	$ 3,965
Bottom of range
Trade and Other Payables [Line Items]
Average credit period on domestic purchases of certain goods	7 days
Top of range
Trade and Other Payables [Line Items]
Average credit period on domestic purchases of certain goods	30 days

General and administrative expenses

12 Months Ended

Dec. 31, 2023

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)	2023		2022		2021
Personnel-related expenses	$	3,812	$	5,010	$	3,800
Share-based compensation expense		3,311		2,138		3,119
Professional and consultant fees		2,869		3,954		2,593
Insurance, facilities, fees and other related costs		2,734		3,022		2,506
	$	12,726	$	14,124	$	12,018

Interest (income) expense, net

12 Months Ended

Dec. 31, 2023

Interest (income) expense, net

Interest (income) expenses, net

7.	Interest income (expense), net


	For the Year Ended December 31,
(in thousands)	2023			2022		2021
Interest (income) expense on borrowings and deposits, net	$	(3,202)	$	(339)	$	564
Interest expense related to leases		232		82		61
	$	(2,970)	$	(257)	$	625

Share capital, share premium and other capital reserves

12 Months Ended

Dec. 31, 2023

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 its share capital as of December 31, 2023, 2022 and 2021:

(in thousands, except

Authorized

Issued and fully paid

Additional paid-in capital

for share and per

December 31,

share amounts)

2023

2022

2021

2023

2022

2021

2023

2022

2021

Preference shares of $0.14 each

45,000,000

—

Common shares of $0.14 each

45,000,000

26,289,087

25,775,538

194,424

192,270

90,000,000

26,289,087

25,775,538

194,424

192,270

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. It 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. It incurred minimal issuance costs.

In 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, it agreed to sell the Series C Preferred in three tranches. In connection with the funding of the tranches it was obligated to repurchase 1,436,500 shares of Series A preferred of approximately $10.3 million and 331,500 common shares.

In 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 amounting to $4.9 million of Series A Preferred were repurchased, resulting in net proceeds of $17.2 million.

In 2021, the Company effected a 221:1 share split of its issued and outstanding common shares and a proportional adjustment to the existing conversion ratios for 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.

In 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 to common shares in connection with the IPO – In 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 to common shares of the Company.

Common shares

In 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, it 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.

In 2021, underwriters of its 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 of $5.9 million after deducting underwriting discounts and commissions of $0.4 million.

In 2021, the Company issued 235,664 common shares to Amsterdam UMC representing the $3.7 million payable in accordance with the Amsterdam UMC agreement.

In 2022, the Company issued 491,352 common shares to Amsterdam UMC representing 50% of the payable in accordance with the Amsterdam UMC agreement.

In 2022, the Company issued 22,197 common shares to former employees upon exercise of outstanding stock options.

In 2023, no common shares were issued.

The following table provides information about its major shareholders on a non-diluted basis:


	As of December 31,
	2023		2022
Gilde Healthcare	20.6	%	20.6	%
Versant Venture Capital VI, L.P.	17.5		17.5
Redmile Biopharma Investments	7.9		10.6
Sanofi Foreign Participations B.V.	7.3		7.3
Novo Holdings A/S	7.1		12.7
Other shareholders	39.6		31.3
	100.0	%	100.0	%

Financial instruments, risk management and capital management (Tables)

12 Months Ended

Dec. 31, 2023

Financial instruments, risk management and capital management

Schedule of financial assets and financial liabilities


		As of December 31,
(in thousands)	2023		2022
Financial assets measured at amortized cost
Cash and cash equivalents (Note 14)	$	44,231	$	100,333
Investments (Note 13)		51,340		32,535
Other non-current assets and security deposits		319		809
Receivables and other		1,459		3,254
Total financial assets	$	97,349	$	136,931

Financial liabilities measured at amortized cost
Borrowings (Note 16)	$	5,282	$	4,640
Trade payables and other (Note 17)		4,446		3,965
Accrued expenses and other current liabilities (Note 18)		4,773		8,193
Lease liabilities (Note 12)		1,031		810
Total financial liabilities	$	15,532	$	17,608

Taxation - Unrecognized deferred tax assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Taxation
Deductible temporary differences	$ 86,887	$ 83,933	$ 59,683
Tax losses	70,322	5,900	5,746
Total unrecognized deferred tax assets	157,209	89,833	65,429
Total tax effect, unrecognized deferred tax assets	$ 40,560	$ 23,177	$ 16,357
Applicable tax rate	25.80%	25.80%	25.00%

Accrued expenses and other current liabilities

12 Months Ended

Dec. 31, 2023

Accrued expenses and other current liabilities.

Accrued expenses and other current liabilities

18. Accrued expenses and other current liabilities


		As of December 31,
(in thousands)		2023		2022
Research and development external project costs	$	2,293	$	5,399
Personnel-related expenses		1,475		1,903
Professional fees		523		486
Other		482		405
	$	4,773	$	8,193

Property and equipment (Tables)

12 Months Ended

Dec. 31, 2023

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, 2022	$	123	$	1,724	$	36	$	192	$	2,075
Additions		—		525		6		56		587
Foreign currency translation adjustment		(6)		(108)		(2)		(10)		(126)
Balance at December 31, 2022		117		2,141		40		238		2,536
Additions		275		388		25		42		730
Disposals		(23)		(12)		—		—		(35)
Foreign currency translation adjustment		9		81		2		14		106
Balance at December 31, 2023	$	378	$	2,598	$	67	$	294	$	3,337
Accumulated depreciation
Balance at January 1, 2022	$	19	$	538	$	16	$	57	$	630
Charge for the year		87		366		8		43		504
Foreign currency translation adjustment		(1)		(26)		—		(3)		(30)
Balance at December 31, 2022		105		878		24		97		1,104
Charge for the year		44		505		12		55		616
Disposals		(23)		(12)		—		—		(35)
Foreign currency translation adjustment		4		40		1		5		50
Balance at December 31, 2023	$	130	$	1,411	$	37	$	157	$	1,735
Carrying amounts
Property and equipment, net at December 31, 2022	$	12	$	1,263	$	16	$	141	$	1,432
Property and equipment, net at December 31, 2023	$	248	$	1,187	$	30	$	137	$	1,602

Revenue (Tables)

12 Months Ended

Dec. 31, 2023

Revenue

Schedule of allocation of transaction price to the performance obligations

The Company allocated the transaction price to the performance obligations as of December 31, 2023 and 2022 as follows:


			Revenue Recognized		Cumulative Revenue
	Transaction		for the twelve months		Recognized		Other assets as of
(in thousands)	Price		ended December 31, 2023		as of December 31, 2023		December 31, 2023
License	$	50,000	$	—	$	15,165	$	—
Manufacturing technology transfer activities		2,167		199		2,272		—
Initial supply		3,583		3,443		3,443		—
Research activities		750		24		687		—
Buy-up fee (*)		(35,000)		—		—		—
	$	21,500	$	3,666	$	21,567	$	—

(*) Buy-up fee remains deferred until option expires or is exercised

			Revenue Recognized		Cumulative Revenue
	Transaction		for the twelve months		Recognized		Other assets as of
(in thousands)	Price		ended December 31, 2022		as of December 31, 2022		December 31, 2022
License	$	50,000	$	15,165	$	15,165	$	—
Manufacturing technology transfer activities		2,167		2,073		2,073		—
Initial supply		3,583		—		—		3,309
Research activities		750		663		663		—
Buy-up fee (*)		(35,000)		—		—		—
	$	21,500	$	17,901	$	17,901	$	3,309

(*) Buy-up fee remains deferred until option expires or is exercised

Schedule of changes in deferred revenue


(in thousands)
Balance at January 1, 2022	$	(1,527)
Deferral of revenue		(35,000)
Recognized during the period		1,490
Foreign currency translation difference		37
Balance at December 31, 2022		(35,000)
Deferral of revenue		—
Recognized during the period		—
Foreign currency translation difference		—
Balance at December 31, 2023		(35,000)

Schedule of revenue


	For the Year Ended December 31,
(in thousands)	2023		2022		2021
Pfizer Inc. - Pfizer Agreement	$	3,666	$	17,901	$	—
Pfizer Inc. - Additional services		613		—		—
Jansen Biotech Inc. - Janssen Agreement		2,490		1,490		5,350
	$	6,769	$	19,391	$	5,350

Interest (income) expense, net (Tables)

12 Months Ended

Dec. 31, 2023

Interest (income) expense, net

Schedule of interest expenses


	For the Year Ended December 31,
(in thousands)	2023			2022		2021
Interest (income) expense on borrowings and deposits, net	$	(3,202)	$	(339)	$	564
Interest expense related to leases		232		82		61
	$	(2,970)	$	(257)	$	625

Foreign currency exchange gain (loss), net

12 Months Ended

Dec. 31, 2023

Foreign currency exchange gain (loss), net

Foreign currency exchange gain (loss), net

8.	Foreign currency exchange gain (loss), net

Changes in foreign currency exchange gain (loss), net were primarily due to the impact of the fluctuation of the USD currency rate compared to the Euro on transaction gains and losses on cash and investments and other transactions denominated in USD held and occurring in a Euro functional currency entity. Foreign currency exchange loss for the year ended December 31, 2023 was $1.4 million and foreign currency exchange gain for the years ended December 31, 2022 and 2021 were $2.9 million and $2.0 million, respectively.