The charge associated with the 9 May 2019 options relating to share price growth have been calculated using a Monte Carlo simulation, incorporating relevant assumptions for share price (157.5p), expected volatility based on similar quoted companies (40%), risk free interest rate (0.72%) and time to vesting (two years, eight months) rather than the performance period (three years). The resultant fair value is then spread over the vesting period. The options relating to net asset value growth have a fair value based upon the share price at grant date (157.5p) and the expected likelihood of vesting (currently considered to be 50%), spread across the vesting period, with a true-up/down as the expected likelihood of vesting changes.

The charge associated with the 30 June 2020 options relating to share price growth have been calculated using a Monte Carlo simulation, incorporating relevant assumptions for share price (86.5p), expected volatility based on the Company's historic share price changes (24%), risk free interest rate (-0.08%) and time to vesting (two years, six months) rather than the performance period (three years). The resultant fair value is then spread over the vesting period. The options relating to net asset value growth have a fair value based upon the share price at grant date (86.5p) and the expected likelihood of vesting (currently considered to be 50%), spread across the vesting period, with a true-up/down as the expected likelihood of vesting changes

For the six months to 30 June 2021, a share based payment credit of £317k (30 June 2020: credit of £585k) has been recognised. The credit for the period reflects the confirmation by the Company's Remuneration Committee of the lapsing of awards made to certain Leavers who were participants in the 2018, 2019 and 2020 Executive Incentive Plan Awards.

A credit of £186k was recognised in relation to the 17 May 2018 award. A credit of £145k was recognised in relation to the 9 May 2019 award. A charge of £13k was recognised in relation to the 30 June 2020 award. 13. Net Cash From Operating Activities 


                                                       Half Year to 30 June 2021   Half Year to 30 June 2020 
                                                       £'000                       £'000 
(Loss)/profit before income tax                        (38,460)                    48,964 
Adjustments for: 
Change in fair value of investments                    32,460                      (42,624) 
Foreign exchange (gain) / loss                         3,046                       (9,306) 
Share-based payment charge                             (317)                       (585) 
Depreciation and Amortisation                          118                         168 
Impairment of Assets                                   31                          8 
Finance income                                         (104)                       (87) 
Changes in Working Capital 
Decrease / (increase) in trade and other receivables   (336)                       (302) 
(Decrease) / increase in trade and other payables      (47)                        (802) 
Cash used in Operations                                (3,609)                     (4,566) 14. Related Party Transactions

During the period, Arix Capital Management Limited, a subsidiary of the Company, received fee income totalling £171k (six months to 30 June 2020: £182k) relating to its management of The Wales Life Sciences Investment Fund LP ("WLSIF"), an entity in which ALS SPV Limited, also a subsidiary of the Company, has an interest. At 30 June 2021, Arix Capital Management Limited was owed £850k (30 June 2020: £515k) in respect of these fees. 15. Events After the Reporting Period

On 16 July 2021, Imara, Inc. closed a public offering raising. Arix invested $8.0 million to retain a stake of 9.0%.

On 27 July 2021, Artios completed its Series C financing round. Arix invested $8.7 million to retain a stake of 8.8%.

Statement of Directors' Responsibilities

The Directors confirm that to the best of their knowledge these consolidated condensed interim financial statements have been prepared in accordance with UK Adopted International Accounting Standard 34, 'Interim Financial Reporting', and that the interim management report includes a fair review of the information required by Disclosures Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority, namely: -- An indication of important events that have occurred during the first six months and their impact on the

consolidated condensed interim set of financial statements, and a description of the principal risks and

uncertainties for the remaining six months of the financial year; and -- Material related-party transactions in the first six months and any material changes in the related-party

transactions described in the last annual report.

The Directors are responsible for the maintenance and integrity of the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The directors of Arix Bioscience plc are listed in the company's Annual Report for 31 December 2020. The following changes have been made since the annual report date; Mark Breuer stepped down from the board on 1 April 2021; Naseem Amin stepped down from the board on 30 April 2021 and Robert Lyne, Peregrine Moncreiffe, Maureen O'Connell and Isaac Kohlberg joined the board on the same date; Trevor Jones stepped down from the board on 14 June 2021.

By order of the Board

Robert Lyne

Interim Chief Executive Officer

11 August 2021

INDEPENDENT REVIEW REPORT TO Arix Bioscience PLC

Introduction

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2021 which comprises the Condensed Consolidated Interim Statement of Financial Position, the Condensed Consolidated Interim Statement of Comprehensive Income, the Condensed Consolidated Interim Statement of Cash Flows, the Condensed Consolidated Interim Statement of Changes in Equity and the explanatory notes to the Condensed Interim Financial Statements.

We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

Directors' responsibilities

The half-yearly financial report is the responsibility of and has been approved by the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

As disclosed in note 2, the annual financial statements of the group will be prepared in accordance with UK adopted international accounting standards. The condensed set of financial statements included in this interim financial report has been prepared in accordance with UK adopted International Accounting Standard 34, "Interim Financial Reporting".

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Financial Reporting Council for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2021is not prepared, in all material respects, in accordance with UK adopted International Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

Use of our report

Our report has been prepared in accordance with the terms of our engagement to assist the Company in meeting its responsibilities in respect of half-yearly financial reporting in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority and for no other purpose. No person is entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose of our terms of engagement or has been expressly authorised to do so by our prior written consent. Save as above, we do not accept responsibility for this report to any other person or for any other purpose and we hereby expressly disclaim any and all such liability.

BDO LLP

Chartered Accountants

London, United Kingdom

11 August 2021

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127). -----------------------------------------------------------------------------------------------------------------------

[1] Including FX

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