INFLARX N.V.
|
|||
Date: November 9, 2022
|
By:
|
/s/ Niels Riedemann
|
|
Name:
|
Niels Riedemann
|
||
Title:
|
Chief Executive Officer
|
Exhibit No.
|
Description
|
InflaRx N.V. Unaudited Condensed Consolidated Financial Statements as of and for the Three and Nine Months Ended September 30, 2022
|
|
InflaRx N.V. Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
99.3 |
InflaRx N.V. Material Dutch Tax Considerations
|
InflaRx N.V. Press Release dated November 9, 2022
|
Unaudited Condensed Consolidated Financial Statements
|
||
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2022 and 2021
|
3 |
|
Unaudited Condensed Consolidated Statements of Financial Position as of September 30, 2022 and December 31, 2021
|
4 |
|
Unaudited Condensed Consolidated Statements of Changes in Shareholders’ Equity for the nine months ended September 30, 2022 and 2021
|
5 |
|
Unaudited Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 and 2021
|
6 |
|
Notes to the Unaudited Condensed Consolidated Financial Statements
|
7 |
|
1.
|
Summary of significant accounting policies and other disclosures
|
7
|
(a)
|
Reporting entity and Group’s structure
|
7
|
(b)
|
Basis of preparation
|
7
|
(c)
|
Significant events of the quarter and changes in circumstances
|
8
|
2.
|
Other income
|
9 |
3.
|
Net financial result
|
10 |
4.
|
Other assets
|
11 |
5.
|
Financial assets and financial liabilities
|
11 |
6.
|
Cash and cash equivalents
|
12 |
7.
|
Equity
|
12 |
8.
|
Share-based payments
|
12 |
(d)
|
Equity settled share-based payment arrangements
|
12 |
(e)
|
Share-based payment expense recognized
|
14 |
9.
|
Protective foundation
|
14 |
For the three months
ended September 30,
|
For the nine months
ended September 30,
|
|||||||||||||||||||
in €, except for share data)
|
Note
|
2022
unaudited
|
2021
(unaudited)
|
2022
(unaudited)
|
2021
(unaudited)
|
|||||||||||||||
Operating Expenses
|
||||||||||||||||||||
Research and development expenses
|
(7,537,350
|
)
|
(9,359,850
|
)
|
(29,190,231
|
)
|
(25,566,005
|
)
|
||||||||||||
General and administrative expenses
|
(3,087,285
|
)
|
(3,395,606
|
)
|
(11,821,694
|
)
|
(9,115,783
|
)
|
||||||||||||
Total Operating Expenses
|
(10,624,636
|
)
|
(12,755,456
|
)
|
(41,011,925
|
)
|
(34,681,788
|
)
|
||||||||||||
Other income
|
2
|
2,030,406
|
22,850
|
16,473,540
|
43,529
|
|||||||||||||||
Other expenses
|
—
|
—
|
(844
|
)
|
(844
|
)
|
||||||||||||||
Operating Result
|
(8,594,230
|
)
|
(12,732,606
|
)
|
(24,539,229
|
)
|
(34,639,103
|
)
|
||||||||||||
Finance income
|
3
|
199,758
|
27,380
|
310,121
|
85,964
|
|||||||||||||||
Finance expenses
|
3
|
(6,845
|
)
|
(9,527
|
)
|
(39,376
|
)
|
(16,261
|
)
|
|||||||||||
Foreign exchange result
|
3
|
882,370
|
715,799
|
3,173,883
|
1,621,165
|
|||||||||||||||
Other financial result
|
3
|
(402,724
|
)
|
(56,000
|
)
|
(363,724
|
)
|
(13,000
|
)
|
|||||||||||
Income Taxes
|
—
|
—
|
—
|
—
|
||||||||||||||||
Loss for the Period
|
(7,921,671
|
)
|
(12,054,955
|
)
|
(21,458,325
|
)
|
(32,961,235
|
)
|
||||||||||||
Share Information
|
||||||||||||||||||||
Weighted average number of shares outstanding
|
44,203,763
|
44,186,279
|
44,203,763
|
40,740,353
|
||||||||||||||||
Loss per share (basic/diluted)
|
(0.18
|
)
|
(0.27
|
)
|
(0.49
|
)
|
(0.81
|
)
|
||||||||||||
Other comprehensive income (loss) that may be reclassified to profit or loss in subsequent periods:
|
||||||||||||||||||||
Exchange differences on translation of foreign currency
|
4,317,134
|
2,536,278
|
10,035,949
|
4,613,675
|
||||||||||||||||
Total Comprehensive Loss
|
(3,604,538
|
)
|
(9,518,677
|
)
|
(11,422,376
|
)
|
(28,347,560
|
)
|
(in €)
|
Note
|
September 30,
2022
(unaudited)
|
December 31,
2021
|
|||||||||
ASSETS
|
||||||||||||
Non-current assets
|
||||||||||||
Property and equipment
|
218,148
|
274,373
|
||||||||||
Right-of-use assets
|
1,414,504
|
1,408,078
|
||||||||||
Intangible assets
|
162,963
|
235,216
|
||||||||||
Other assets
|
4
|
350,570
|
336,566
|
|||||||||
Financial assets
|
5
|
237,702
|
27,206,990
|
|||||||||
Total non-current assets
|
2,383,887
|
29,461,224
|
||||||||||
Current assets
|
||||||||||||
Current other assets
|
4
|
7,574,507
|
10,983,458
|
|||||||||
Current tax assets
|
1,589,924
|
1,282,177
|
||||||||||
Financial assets from government grants
|
5
|
5,954,754
|
—
|
|||||||||
Other financial assets
|
5
|
75,636,548
|
57,162,266
|
|||||||||
Cash and cash equivalents
|
6
|
17,978,003
|
26,249,995
|
|||||||||
Total current assets
|
108,733,737
|
95,677,896
|
||||||||||
TOTAL ASSETS
|
111,117,624
|
125,139,120
|
||||||||||
EQUITY AND LIABILITIES
|
||||||||||||
Equity
|
||||||||||||
Issued capital
|
7
|
5,304,452
|
5,304,452
|
|||||||||
Share premium
|
7
|
280,310,744
|
280,310,744
|
|||||||||
Other capital reserves
|
36,172,229
|
30,591,209
|
||||||||||
Accumulated deficit
|
(235,434,004
|
)
|
(213,975,679
|
)
|
||||||||
Other components of equity
|
13,086,220
|
3,050,270
|
||||||||||
Total equity
|
99,439,640
|
105,280,996
|
||||||||||
Non-current liabilities
|
||||||||||||
Lease liabilities
|
5
|
1,080,005
|
1,066,354
|
|||||||||
Other liabilities
|
39,879
|
35,019
|
||||||||||
Total non-current liabilities
|
1,119,884
|
1,101,373
|
||||||||||
Current liabilities
|
||||||||||||
Trade and other payables
|
5
|
7,438,427
|
8,574,244
|
|||||||||
Liabilities from government grants
|
5
|
1,450,585
|
8,300,000
|
|||||||||
Lease liabilities
|
5
|
374,533
|
366,171
|
|||||||||
Employee benefits
|
1,151,288
|
1,378,130
|
||||||||||
Other liabilities
|
143,266
|
138,206
|
||||||||||
Total current liabilities
|
10,558,100
|
18,756,751
|
||||||||||
Total Liabilities
|
11,677,984
|
19,858,124
|
||||||||||
TOTAL EQUITY AND LIABILITIES
|
111,117,624
|
125,139,120
|
(in €, except for share data)
|
Note |
Shares
outstanding
|
Issued
capital
|
Share
premium
|
Other capital
reserves
|
Accumulated
deficit
|
Other compo-
nents of equity
|
Total equity
|
||||||||||||||||||||||||
Balance as of January 1, 2022
|
44,203,763
|
5,304,452
|
280,310,744
|
30,591,209
|
(213,975,679
|
)
|
3,050,271
|
105,280,996
|
||||||||||||||||||||||||
Loss for the period
|
—
|
—
|
—
|
—
|
(21,458,325
|
)
|
—
|
(21,458,325
|
)
|
|||||||||||||||||||||||
Exchange differences on
translation of foreign currency
|
—
|
—
|
—
|
—
|
—
|
10,035,949
|
10,035,949
|
|||||||||||||||||||||||||
Total comprehensive loss
|
—
|
—
|
—
|
—
|
(21,458,325
|
)
|
10,035,949
|
(11,422,376
|
)
|
|||||||||||||||||||||||
Equity-settled share-based payments
|
8
|
—
|
—
|
—
|
5,581,021
|
—
|
—
|
5,581,021
|
||||||||||||||||||||||||
Balance as of September 30, 2022*
|
44,203,763
|
5,304,452
|
280,310,744
|
36,172,229
|
(235,434,004
|
)
|
13,086,220
|
99,439,640
|
||||||||||||||||||||||||
Balance as of January 1, 2021
|
28,228,415
|
3,387,410
|
220,289,876
|
26,259,004
|
(168,345,620
|
)
|
(3,726,790
|
)
|
77,863,880
|
|||||||||||||||||||||||
Loss for the period
|
—
|
—
|
—
|
—
|
(32,961,235
|
)
|
—
|
(32,961,235
|
)
|
|||||||||||||||||||||||
Exchange differences on
translation of foreign currency
|
—
|
—
|
—
|
—
|
—
|
4,613,675
|
4,613,675
|
|||||||||||||||||||||||||
Total comprehensive loss
|
—
|
—
|
—
|
—
|
(32,961,235
|
)
|
4,613,675
|
(28,347,560
|
)
|
|||||||||||||||||||||||
Issuance of common shares and warrants
|
15,610,022
|
1,873,203
|
63,269,346
|
—
|
—
|
—
|
65,142,549
|
|||||||||||||||||||||||||
Transaction costs
|
—
|
—
|
(4,219,222
|
)
|
—
|
—
|
—
|
(4,219,222
|
)
|
|||||||||||||||||||||||
Equity-settled share-based payments
|
8
|
—
|
—
|
—
|
3,823,592
|
—
|
—
|
3,823,592
|
||||||||||||||||||||||||
Share options exercised
|
8
|
347,842
|
41,741
|
921,994
|
—
|
—
|
—
|
963,735
|
||||||||||||||||||||||||
Balance as of September 30, 2021*
|
44,186,279
|
5,302,354
|
280,261,994
|
30,082,596
|
(201,306,855
|
)
|
886,884
|
115,226,973
|
(in €)
|
Note
|
For the nine months
ended
September 30, 2022
(unaudited)
|
For the nine months
ended
September 30, 2021
(unaudited)
|
|||||||||
Operating activities
|
||||||||||||
Loss for the period
|
(21,458,325
|
)
|
(32,961,235
|
)
|
||||||||
Adjustments for:
|
||||||||||||
Depreciation & amortization of property and equipment, right-of-use assets and intangible assets
|
448,323
|
502,605
|
||||||||||
Net finance income
|
(3,080,904
|
)
|
(1,677,868
|
)
|
||||||||
Share-based payment expense
|
7
|
5,581,021
|
3,823,592
|
|||||||||
Net foreign exchange differences
|
189,088
|
(3,185
|
)
|
|||||||||
Changes in:
|
||||||||||||
Financial assets from government grants
|
5
|
(5,954,754
|
)
|
-
|
||||||||
Other assets
|
3,087,177
|
(1,159,960
|
)
|
|||||||||
Employee benefits
|
(221,982
|
)
|
(438,436
|
)
|
||||||||
Other liabilities
|
5,061
|
12,130
|
||||||||||
Liabilities from government grants
|
5
|
(6,849,415
|
)
|
-
|
||||||||
Trade and other payables
|
(1,135,817
|
)
|
3,259,223
|
|||||||||
Interest received
|
903,647
|
443,531
|
||||||||||
Interest paid
|
(38,978
|
)
|
(15,072
|
)
|
||||||||
Net cash used in operating activities Investing activities
|
(28,525,857
|
)
|
(28,214,674
|
)
|
||||||||
Purchase of intangible assets, property and equipment
|
(17,908
|
)
|
(21,691
|
)
|
||||||||
Purchase of current financial assets
|
(47,031,216
|
)
|
(40,512,715
|
)
|
||||||||
Proceeds from the maturity of financial assets
|
64,600,049
|
48,250,724
|
||||||||||
Net cash from investing activities |
17,550,925
|
7,716,318
|
||||||||||
Financing activities
|
||||||||||||
Proceeds from issuance of common shares
|
6
|
—
|
65,142,549
|
|||||||||
Transaction costs from issuance of common shares
|
6
|
—
|
(4,219,222
|
)
|
||||||||
Proceeds from exercise of share options
|
7
|
—
|
963,735
|
|||||||||
Repayment of lease liabilities
|
(273,092
|
)
|
(271,608
|
)
|
||||||||
Net cash from (used in) financing activities
|
(273,092
|
)
|
61,615,454
|
|||||||||
Net decrease/increase in cash and cash equivalents
|
(11,248,024
|
)
|
41,117,098
|
|||||||||
Effect of exchange rate changes on cash and cash equivalents
|
2,976,033
|
2,881,645
|
||||||||||
Cash and cash equivalents at beginning of period
|
26,249,995
|
25,968,681
|
||||||||||
Cash and cash equivalents at end of period
|
5
|
17,978,003
|
69,967,424
|
1. |
Summary of significant accounting policies and other disclosures
|
(a) |
Reporting entity and Group’s structure
|
(b) |
Basis of preparation
|
• |
Reference to the Conceptual Framework – Amendments to IFRS 3
|
• |
Property, Plant and Equipment: Proceeds before Intended Use – Amendments to IAS 16
|
• |
Onerous Contracts – Costs of Fulfilling a Contract – Amendments to IAS 37
|
• |
AIP IFRS 9 Financial Instruments – Fees in the ’10 per cent’ test
|
• |
IFRS 17 Insurance Contracts
|
• |
Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or
|
• |
Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of
|
• |
Amendments to IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction
|
• |
Disclosure of Accounting Policies – Amendments to IAS 1 and IFRS Practice Statement 2
|
(c) |
Significant events of the quarter and changes in circumstances
|
2. |
Other income
|
For the three months ended
September 30,
|
For the nine months ended
September 30,
|
|||||||||||||||
(in €)
|
2022 (unaudited)
|
2021 (unaudited)
|
2022
(unaudited)
|
2021
(unaudited)
|
||||||||||||
Other income from government grants
|
2,019,684
|
—
|
16,435,051
|
—
|
||||||||||||
Further other incomes
|
10,722
|
22,850
|
38,489
|
43,529
|
||||||||||||
Total
|
2,030,406
|
22,850
|
16,473,540
|
43,529
|
3. |
Net financial result
|
For the three months
ended
September 30,
|
For the nine months
ended
September 30,
|
|||||||||||||||
(in €)
|
2022 (unaudited)
|
2021 (unaudited)
|
2022
(unaudited)
|
2021
(unaudited)
|
||||||||||||
Financial income
|
||||||||||||||||
Interest income
|
199,758
|
27,380
|
310,121
|
85,964
|
||||||||||||
Financial expenses
|
||||||||||||||||
Interest expenses
|
(878
|
)
|
(4,305
|
)
|
(22,980
|
)
|
(7,190
|
)
|
||||||||
Interest on lease liabilities
|
(5,967
|
)
|
(5,222
|
)
|
(16,396
|
)
|
(9,071
|
)
|
||||||||
Total
|
192,913
|
17,853
|
270,745
|
69,703
|
For the three months ended
September 30,
|
For the nine months ended
September 30,
|
|||||||||||||||
(in €)
|
2022
(unaudited)
|
2021
(unaudited)
|
2022
(unaudited)
|
2021
(unaudited)
|
||||||||||||
Foreign exchange result
|
||||||||||||||||
Foreign exchange income
|
1,634,121
|
910,411
|
5,691,750
|
5,002,650
|
||||||||||||
Foreign exchange expense
|
(751,751
|
)
|
(194,612
|
)
|
(2,517,867
|
)
|
(3,381,485
|
)
|
||||||||
Total
|
882,370
|
715,799
|
3,173,883
|
1,621,165
|
For the three months ended
September 30,
|
For the nine months ended
September 30,
|
|||||||||||||||
(in €)
|
2022
(unaudited)
|
2021
(unaudited)
|
2022
(unaudited)
|
2021
(unaudited)
|
||||||||||||
Other financial result
|
(402,724
|
)
|
(56,000
|
)
|
(363,724
|
)
|
(13,000
|
)
|
4. |
Other assets
|
(in €)
|
As of
September 30, 2022
(unaudited)
|
As of
December 31, 2021
|
||||||
Non-current other assets
|
||||||||
Prepaid expense
|
350,570
|
336,566
|
||||||
Total
|
350,570
|
336,566
|
||||||
Current other assets
|
||||||||
Prepayments on research & development projects
|
6,793,444
|
10,649,174
|
||||||
Current tax assets
|
1,589,924
|
1,282,177
|
||||||
Prepaid expense
|
781,062
|
334,284
|
||||||
Total
|
9,164,431
|
12,265,635
|
5. |
Financial assets and financial liabilities
|
(in €)
|
As of
September 30, 2022
(unaudited)
|
As of
December 31, 2021
|
||||||
Financial assets at amortized cost
|
||||||||
Non-current financial assets
|
237,702
|
27,206,990
|
||||||
Financial assets from government grants
|
5,954,754
|
—
|
||||||
Other current financial assets
|
75,636,548
|
57,162,266
|
||||||
Financial liabilities at amortized cost
|
||||||||
Liabilities from government grants
|
1,450,585
|
8,300,000
|
||||||
Trade and other payables
|
7,438,427
|
8,574,244
|
||||||
Interest bearing loans and borrowings
|
||||||||
Non-current lease liabilities
|
1,080,005
|
1,066,354
|
||||||
Current lease liabilities
|
374,533
|
366,171
|
6. |
Cash and cash equivalents
|
(in €)
|
As of
September 30, 2022
(unaudited)
|
As of
December 31, 2021
|
||||||
Short-term deposits
|
||||||||
Deposits held in U.S Dollars
|
3,744
|
12,584,892
|
||||||
Total
|
3,744
|
12,584,892
|
||||||
Cash at banks
|
||||||||
Cash held in U.S. Dollars
|
15,169,816
|
7,612,467
|
||||||
Cash held in Euro
|
2,804,443
|
6,052,636
|
||||||
Total
|
17,974,259
|
13,665,103
|
||||||
Total cash and cash equivalents
|
17,978,003
|
26,249,995
|
7. |
Equity
|
8. |
Share-based payments
|
(d) |
Equity settled share-based payment arrangements
|
Number of share options under the 2012 Plan
|
2022
|
2021
|
||||||
Outstanding as of January 1,
|
148,433
|
148,433
|
||||||
Exercised during the nine months ended September 30
|
—
|
—
|
||||||
Outstanding as of September 30,
|
148,433
|
148,433
|
||||||
thereof vested
|
148,433
|
148,433
|
Number of share options under the 2016 Plan
|
2022
|
2021
|
||||||
Outstanding as of January 1,
|
888,632
|
1,094,852
|
||||||
Exercised during the nine months ended September 30
|
—
|
(202,020
|
)
|
|||||
Outstanding as of September 30,
|
888,632
|
892,832
|
||||||
thereof vested
|
888,632
|
892,832
|
• |
increasing the maximum annual number of options for common shares in the Company’s capital available for issuance under the LTIP, starting on January 1, 2021, to 4% (from 3%) of the Company’s outstanding common shares (determined as of
December 31 of the immediately preceding year); and
|
• |
removing certain restrictions from the LTIP, which will allow the Board of Directors and the committee administering the LTIP to (i) lower the exercise price per share of any options and/or share appreciation rights issued under the LTIP
or take any other action treated as a ‘repricing’ of an award and (ii) cancel any option and/or share appreciation rights in exchange for cash or another award granted under the LTIP, in either case, without prior approval of the Company’s
shareholders.
|
Number of share options under the LTIP
|
2022 |
2021
|
||||||
Outstanding as of January 1,
|
3,170,046
|
2,146,478
|
||||||
Granted during the nine months ended September 30
|
1,561,666
|
1,219,074
|
||||||
Exercised during the nine months ended September 30
|
—
|
(145,822
|
)
|
|||||
Forfeited during the nine months ended September 30
|
(136,259
|
)
|
(31,400
|
)
|
||||
Outstanding as of September 30,
|
4,595,453
|
3,188,330
|
||||||
thereof vested
|
3,762,203
|
2,173,210
|
Share
options
granted
|
Number
|
Fair
value
per
option
|
FX rate
as of
repricing
date
|
Fair
value
per
option
|
Share
price at
repricing
date / Exercise
price
|
Expected
volatility
|
Expected
life
(midpoint
based)
|
Risk-free rate
(interpolated, U.S.
sovereign strips
curve)
|
||||||||||||||||||||||||
2022
|
||||||||||||||||||||||||||||||||
January 12
|
1,516,666
|
$
|
3.66
|
0.9008
|
€
|
3.30
|
$
|
4.13
|
1.35
|
5.31
|
1,57
|
%
|
||||||||||||||||||||
January 12
|
45,000
|
$
|
3.68
|
0.9008
|
€
|
3.32
|
$
|
4.13
|
1.35
|
5.50
|
1.59
|
%
|
||||||||||||||||||||
1,561,666
|
Share
options
granted
|
Number
|
Fair
value
per
option
|
FX rate
as of
repricing
date
|
Fair
value
per
option
|
Share
price at
repricing
date /
Exercise
price
|
Expected
volatility
|
Expected
life
(midpoint
based)
|
Risk-free rate
(interpolated, U.S.
sovereign strips
curve)
|
||||||||||||||||||||||||
2022
|
||||||||||||||||||||||||||||||||
January 12
|
1,516,666
|
$
|
1.61
|
0.9237
|
€
|
1.49
|
$
|
1.86
|
1.35
|
4.69
|
2.6
|
%
|
||||||||||||||||||||
January 12
|
45,000
|
$
|
1.59
|
0.9237
|
€
|
1.47
|
$
|
1.86
|
1.35
|
4.50
|
2.6
|
%
|
||||||||||||||||||||
1,561,666
|
(e) |
Share-based payment expense recognized
|
9. |
Protective foundation
|
• |
engage with regulators with respect to potential approval paths for vilobelimab in severe COVID-19 and PG and determine and execute on next steps for the clinical development of, and regulatory approval for, vilobelimab in severe
COVID-19 and/or PG;
|
• |
further develop vilobelimab for cSCC, depending on the results of the ongoing trial in that indication;
|
• |
further develop and continue research programs for the potential start of Phase III trials;
|
• |
initiate and continue research programs and development activities, including development of IFX002 and INF904; and
|
• |
manufacture clinical trial material and continue to validate our manufacturing process for vilobelimab to meet regulatory standards for approval as a commercial-grade manufacturing process.
|
• |
expenses incurred under agreements with contract research organizations (CROs), contract manufacturing organizations (CMOs), consultants and independent contractors that conduct research and development, manufacturing development,
preclinical and clinical activities on our behalf;
|
• |
employee-related expenses, including salaries, benefits and share-based compensation expense based upon employees’ role within the organization; and
|
• |
professional legal fees related to the protection and maintenance of our intellectual property.
|
• |
Vilobelimab. We expect our expenses associated with vilobelimab will increase in 2022 compared to 2021, as we complete the outstanding clinical trial activities in COVID-19, pursue regulatory approval submissions for vilobelimab in
severe COVID-19, complete outstanding activities in our Phase II clinical program of vilobelimab in patients with PG, potentially start a Phase III study in PG, and continue the Phase II clinical program in cSCC. In addition, we are also
incurring expenses related to the manufacturing of clinical trial material and by validating our manufacturing process for vilobelimab to meet regulatory standards for approval as a commercial-grade manufacturing process. Furthermore, we
are investigating commercial-scale production options.
|
• |
INF904. We are developing an oral, small molecule drug candidate that targets the C5aR receptor. All IND-enabling studies have been completed and we plan to initiate the Phase I program in the second half of 2022.
|
• |
IFX002. We are continuing preclinical development of IFX002, expenses for which mainly consist of salaries, costs for preclinical testing conducted by CROs and costs of production for preclinical material.
|
• |
Other development programs. Our other research and development expenses relate to our preclinical studies of other product candidates and discovery activities, expenses for which mainly consist of salaries, costs of production for
preclinical compounds and costs paid to CROs.
|
Three Months Ended September 30,
|
||||||||||||
(in €)
|
2022
|
2021
|
Change
|
|||||||||
Operating Expenses
|
||||||||||||
Research and development expenses
|
(7,537,350
|
)
|
(9,359,850
|
)
|
1,822,500
|
|||||||
General and administrative expenses
|
(3,087,285
|
)
|
(3,395,606
|
)
|
308,321
|
|||||||
Total Operating Expenses
|
(10,624,636
|
)
|
(12,755,456
|
)
|
2,130,820
|
|||||||
Other income
|
2,030,406
|
22,850
|
2,007,556
|
|||||||||
Other expenses
|
—
|
—
|
—
|
|||||||||
Operating Result
|
(8,594,230
|
)
|
(12,732,606
|
)
|
4,138,376
|
|||||||
Finance income
|
199,758
|
27,380
|
172,378
|
|||||||||
Finance expenses
|
(6,845
|
)
|
(9,527
|
)
|
2,682
|
|||||||
Foreign exchange result
|
882,370
|
715,799
|
166,571
|
|||||||||
Other financial result
|
(402,724
|
)
|
(56,000
|
)
|
(346,724
|
)
|
||||||
Loss for the Period
|
(7,921,671
|
)
|
(12,054,955
|
)
|
4,133,284
|
|||||||
Exchange differences on translation of foreign currency
|
4,317,134
|
2,536,278
|
1,780,856
|
|||||||||
Total Comprehensive Loss
|
(3,604,538
|
)
|
(9,518,677
|
)
|
5,914,140
|
Three Months Ended September 30,
|
||||||||||||
(in €)
|
2022
|
2021
|
Change
|
|||||||||
Third-party expenses
|
5,164,843
|
7,525,004
|
(2,360,161
|
)
|
||||||||
Personnel expenses
|
1,599,452
|
1,484,193
|
115,259
|
|||||||||
Legal and consulting fees
|
668,408
|
237,543
|
430,865
|
|||||||||
Other expenses
|
104,646
|
113,110
|
(8,464
|
)
|
||||||||
Total Research and development expenses
|
7,537,350
|
9,359,850
|
(1,822,500
|
)
|
Three Months Ended September 30,
|
||||||||||||
(in €)
|
2022
|
2021
|
Change
|
|||||||||
Personnel expenses
|
1,413,560
|
1,645,090
|
(231,530
|
)
|
||||||||
Legal, consulting and audit fees
|
533,648
|
880,732
|
(347,084
|
)
|
||||||||
Other expenses
|
1,140,078
|
869,784
|
270,294
|
|||||||||
Total General and administrative expense
|
3,087,285
|
3,395,606
|
(308,321
|
)
|
Three Months Ended September 30,
|
||||||||||||
(in €)
|
2022
|
2021
|
Change
|
|||||||||
Other income from government grants
|
2,019,684
|
—
|
2,019,684
|
|||||||||
Further other incomes
|
10,722
|
22,850
|
(12,128
|
)
|
||||||||
Total Other income
|
2,030,406
|
22,850
|
2,007,556
|
Financial Result
|
Three Months Ended September 30,
|
|||||||||||
(in €)
|
2022
|
2021
|
Change
|
|||||||||
Financial income
|
||||||||||||
Interest income
|
199,758
|
27,380
|
172,378
|
|||||||||
Financial expenses
|
||||||||||||
Interest expenses
|
(878
|
)
|
(4,305
|
)
|
3,427
|
|||||||
Interest on lease liabilities
|
(5,967
|
)
|
(5,222
|
)
|
(745
|
)
|
||||||
Total
|
192,913
|
17,853
|
175,060
|
Foreign exchange result
|
Three Months Ended September 30,
|
|||||||||||
(in €)
|
2022
|
2021
|
Change
|
|||||||||
Foreign exchange result
|
||||||||||||
Foreign exchange income
|
1,634,121
|
910,411
|
723,710
|
|||||||||
Foreign exchange expense
|
(751,751
|
)
|
(194,612
|
)
|
(557,139
|
)
|
||||||
Total
|
882,370
|
715,799
|
166,571
|
|||||||||
Other financial result
|
Three Months Ended September 30,
|
|||||||||||
(in €)
|
2022
|
2021
|
Change
|
|||||||||
Other financial result
|
||||||||||||
Total
|
(402,724
|
)
|
(56,000
|
)
|
(346,724
|
)
|
||||||
Nine Months Ended September 30,
|
||||||||||||
(in €)
|
2022
|
2021
|
Change
|
|||||||||
Operating Expenses
|
||||||||||||
Research and development expenses
|
(29,190,231
|
)
|
(25,566,005
|
)
|
(3,624,226
|
)
|
||||||
General and administrative expenses
|
(11,821,694
|
)
|
(9,115,783
|
)
|
(2,705,911
|
)
|
||||||
Total Operating Expenses
|
(41,011,925
|
)
|
(34,681,788
|
)
|
(6,330,137
|
)
|
||||||
Other income
|
16,473,540
|
43,529
|
16,430,011
|
|||||||||
Other expense
|
(844
|
)
|
(844
|
)
|
—
|
|||||||
Operating Result
|
(24,539,229
|
)
|
(34,639,103
|
)
|
10,099,874
|
|||||||
Finance income
|
310,121
|
85,964
|
224,157
|
|||||||||
Finance expenses
|
(39,376
|
)
|
(16,261
|
)
|
(23,115
|
)
|
||||||
Foreign exchange result
|
3,173,883
|
1,621,165
|
1,552,718
|
|||||||||
Other financial result
|
(363,724
|
)
|
(13,000
|
)
|
(350,724
|
)
|
||||||
Loss for the Period
|
(21,458,325
|
)
|
(32,961,235
|
)
|
11,502,910
|
|||||||
Exchange differences on translation of foreign currency
|
10,035,949
|
4,613,675
|
5,422,274
|
|||||||||
Total Comprehensive Loss
|
(11,422,376
|
)
|
(28,347,560
|
)
|
16,925,184
|
Nine Months Ended September 30,
|
||||||||||||
(in €)
|
2022
|
2021
|
Change
|
|||||||||
Third-party expenses
|
21,947,799
|
20,031,444
|
1,916,355
|
|||||||||
Personnel expenses
|
5,825,051
|
4,462,164
|
1,362,887
|
|||||||||
Legal and consulting fees
|
1,139,769
|
748,360
|
391,409
|
|||||||||
Other expenses
|
277,613
|
324,037
|
(46,424
|
)
|
||||||||
Total research and development expenses
|
29,190,231
|
25,566,005
|
3,624,226
|
Nine Months Ended September 30,
|
||||||||||||
(in €)
|
2022
|
2021
|
Change
|
|||||||||
Personnel expenses
|
5,943,286
|
5,186,576
|
756,710
|
|||||||||
Legal, consulting and audit fees
|
2,445,355
|
1,461,181
|
984,174
|
|||||||||
Other expenses
|
3,433,052
|
2,468,026
|
965,026
|
|||||||||
Total General and administrative expense
|
11,821,694
|
9,115,783
|
2,705,911
|
Nine Months Ended September 30,
|
||||||||||||
(in €)
|
2022
|
2021
|
Change
|
|||||||||
Other income from government grants
|
16,435,051
|
—
|
16,435,051
|
|||||||||
Further other incomes
|
38,489
|
43,528
|
(5,039
|
)
|
||||||||
Total Other income
|
16,473,540
|
43,528
|
16,430,012
|
Financial Result
|
Nine Months Ended September 30,
|
|||||||||||
(in €)
|
2022
|
2021
|
Change
|
|||||||||
Financial income
|
||||||||||||
Interest income
|
310,121
|
85,964
|
224,157
|
|||||||||
Financial expenses
|
||||||||||||
Interest expenses
|
(22,980
|
)
|
(7,190
|
)
|
(15,790
|
)
|
||||||
Interest on lease liabilities
|
(16,396
|
)
|
(9,071
|
)
|
(7,325
|
)
|
||||||
Total
|
270,745
|
69,703
|
201,042
|
Foreign exchange result
|
Nine Months Ended September 30,
|
|||||||||||
(in €)
|
2022
|
2021
|
Change
|
|||||||||
Foreign exchange result
|
||||||||||||
Foreign exchange income
|
5,691,750
|
5,002,650
|
689,100
|
|||||||||
Foreign exchange expense
|
(2,517,867
|
)
|
(3,381,485
|
)
|
863,618
|
|||||||
Total
|
3,173,883
|
1,621,165
|
1,552,718
|
Other financial result
|
Nine Months Ended September 30,
|
|||||||||||
(in €)
|
2022
|
2021
|
Change
|
|||||||||
Other financial result
|
||||||||||||
Total
|
(363,724
|
)
|
(13,000
|
)
|
(350,724
|
)
|
Nine Months Ended September 30,
|
||||||||
(in €)
|
2022
|
2021
|
||||||
Net cash used in operating activities
|
(28,525,857
|
)
|
(28,214,674
|
)
|
||||
Net cash from investing activities
|
17,550,925
|
7,716,318
|
||||||
Net cash from/ (used in) financing activities
|
(273,092
|
)
|
61,615,454
|
|||||
Cash and cash equivalents at the beginning of the period
|
26,249,995
|
25,968,681
|
||||||
Exchange gains on cash and cash equivalents
|
2,976,033
|
2,881,645
|
||||||
Cash and cash equivalents at the end of the period
|
17,978,003
|
69,967,424
|
• |
our operation as a development stage company with limited operating history, our history of operating losses and our accumulated deficit of €235.4 million as of September 30, 2022;
|
• |
the timing, progress and results of clinical trials of vilobelimab and any other product candidates, including for the development of vilobelimab in several indications, including to treat PG and severe COVID-19, and statements regarding
the timing of initiation and completion of studies or trials and related preparatory work, the period during which the results of the trials will become available, the costs of such trials and our research and development programs
generally;
|
• |
our interactions with regulators regarding the results of clinical trials and potential regulatory approval pathways; the timing and outcome of any discussions or submission of filings for regulatory approval of vilobelimab or any other
product candidate, and the timing of and our ability to obtain and maintain regulatory approval of vilobelimab for any indication;
|
• |
our ability to leverage our proprietary anti-C5a and anti-C5aR technologies to discover and develop therapies to treat complement-mediated autoimmune and inflammatory diseases;
|
• |
our ability to protect, maintain and enforce our intellectual property protection for vilobelimab and any other product candidates, and the scope of such protection;
|
• |
whether the FDA, EMA or comparable foreign regulatory authority will accept or agree with the number, design, size, conduct or implementation of our clinical trials, including any proposed primary or secondary endpoints for such trials;
|
• |
the success of our future clinical trials for vilobelimab and any other product candidates and whether such clinical results will reflect results seen in previously conducted preclinical studies and clinical trials;
|
• |
our expectations regarding the size of the patient populations for, market opportunity for and clinical utility of vilobelimab or any other product candidates, if approved for commercial use;
|
• |
our manufacturing capabilities and strategy, including the scalability and cost of our manufacturing methods and processes and the optimization of our manufacturing methods and processes, and our ability to continue to rely on our
existing third-party manufacturers and our ability to engage additional third-party manufacturers for our planned future clinical trials and potentially for commercial supply of vilobelimab;
|
• |
our estimates of our expenses, ongoing losses, future revenue, capital requirements and our needs for or ability to obtain additional financing;
|
• |
our expectations regarding the scope of any approved indication for vilobelimab;
|
• |
our ability to defend against liability claims resulting from the testing of our product candidates in the clinic or, if, approved, any commercial sales;
|
• |
our ability to commercialize vilobelimab or our other product candidates;
|
• |
if any of our product candidates obtain regulatory approval, our ability to comply with and satisfy ongoing obligations and continued regulatory overview;
|
• |
our ability to comply with enacted and future legislation in seeking marketing approval and commercialization;
|
• |
our future growth and ability to compete, which depends on our retaining key personnel and recruiting additional qualified personnel;
|
• |
our competitive position and the development of and projections relating to our competitors in the development of C5a inhibitors or our industry; and
|
• |
Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and some of which are beyond our control, you should not rely on these forward-looking statements as
predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. You
should refer to the “ITEM 3. KEY INFORMATION— C. Risk factors” section of our Annual Report for a discussion of important factors that may cause our actual results to differ materially from those expressed or implied by our forward-looking
statements. Moreover, we operate in an evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties. As a result of these factors,
we cannot assure you that the forward-looking statements in this discussion or in our Annual Report will prove to be accurate. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements
contained herein, whether as a result of any new information, future events, changed circumstances or otherwise. You should, however, review the factors and risks and other information we describe in the reports we will file from time to
time with the SEC after the date of this discussion.
|
a) |
a deemed return on the fair market value of the actual amount of bank savings; plus
|
b) |
a deemed return on the fair market value of the actual amount of other investments, including the common shares; minus
|
c) |
a deemed return on the fair market value of the actual amount of liabilities.
|
• |
Vilobelimab earns Orphan Drug and Fast Track designation for the treatment of critically ill, intubated, mechanically ventilated COVID-19 patients - Emergency Use Authorization (EUA) submitted to U.S. Food and
Drug Administration (FDA)
|
• |
PANAMO Phase III study results in severe COVID-19 published in peer-reviewed journal, The Lancet Respiratory Medicine
|
• |
Fast Track designation granted for the treatment of pyoderma gangrenosum by FDA
|
• |
Cash, cash equivalents and marketable securities of €93.2 million, expected to finance operations at least until year-end 2024
|
For the three months ended
September 30,
|
For the nine months ended
September 30,
|
|||||||||||||||
(in €, except for share data)
|
2022
(unaudited)
|
2021
(unaudited)
|
2022
(unaudited)
|
2021
(unaudited)
|
||||||||||||
Operating Expenses
|
||||||||||||||||
Research and development expenses
|
(7,537,350
|
)
|
(9,359,850
|
)
|
(29,190,231
|
)
|
(25,566,005
|
)
|
||||||||
General and administrative expenses
|
(3,087,285
|
)
|
(3,395,606
|
)
|
(11,821,694
|
)
|
(9,115,783
|
)
|
||||||||
Total Operating Expenses
|
(10,624,636
|
)
|
(12,755,456
|
)
|
(41,011,925
|
)
|
(34,681,788
|
)
|
||||||||
Other income
|
2,030,406
|
22,850
|
16,473,540
|
43,529
|
||||||||||||
Other expenses
|
—
|
—
|
(844
|
)
|
(844
|
)
|
||||||||||
Operating Result
|
(8,594,230
|
)
|
(12,732,606
|
)
|
(24,539,229
|
)
|
(34,639,103
|
)
|
||||||||
Finance income
|
199,758
|
27,380
|
310,121
|
85,964
|
||||||||||||
Finance expenses
|
(6,845
|
)
|
(9,527
|
)
|
(39,376
|
)
|
(16,261
|
)
|
||||||||
Foreign exchange result
|
882,370
|
715,799
|
3,173,883
|
1,621,165
|
||||||||||||
Other financial result
|
(402,724
|
)
|
(56,000
|
)
|
(363,724
|
)
|
(13,000
|
)
|
||||||||
Income Taxes
|
—
|
—
|
—
|
—
|
||||||||||||
Income (Loss) for the Period
|
(7,921,671
|
)
|
(12,054,955
|
)
|
(21,458,325
|
)
|
(32,961,235
|
)
|
||||||||
Share Information
|
||||||||||||||||
Weighted average number of shares outstanding
|
44,203,763
|
44,186,279
|
44,203,763
|
40,740,353
|
||||||||||||
Income (Loss) per share (basic/diluted)
|
(0.18
|
)
|
(0.27
|
)
|
(0.49
|
)
|
(0.81
|
)
|
||||||||
Loss for the Period
|
(7,921,671
|
)
|
(12,054,955
|
)
|
(21,458,325
|
)
|
(32,961,235
|
)
|
||||||||
Other comprehensive income (loss) that may be reclassified to profit or loss in subsequent periods:
|
||||||||||||||||
Exchange differences on translation of foreign currency
|
4,317,134
|
2,536,278
|
10,035,949
|
4,613,675
|
||||||||||||
Total Comprehensive Income (Loss)
|
(3,604,538
|
)
|
(9,518,677
|
)
|
(11,422,376
|
)
|
(28,347,560
|
)
|
in €
|
September 30, 2022
(unaudited)
|
December 31, 2021
|
||||||
ASSETS
|
||||||||
Non-current assets
|
||||||||
Property and equipment
|
218,148
|
274,373
|
||||||
Right-of-use assets
|
1,414,504
|
1,408,078
|
||||||
Intangible assets
|
162,963
|
235,216
|
||||||
Other assets
|
350,570
|
336,566
|
||||||
Financial assets
|
237,702
|
27,206,990
|
||||||
Total non-current assets
|
2,383,887
|
29,461,224
|
||||||
Current assets
|
||||||||
Current other assets
|
7,574,507
|
10,983,458
|
||||||
Current tax assets
|
1,589,924
|
1,282,177
|
||||||
Financial assets from government grants
|
5,954,754
|
—
|
||||||
Other financial assets
|
75,636,548
|
57,162,266
|
||||||
Cash and cash equivalents
|
17,978,003
|
26,249,995
|
||||||
Total current assets
|
108,733,737
|
95,677,896
|
||||||
TOTAL ASSETS
|
111,117,624
|
125,139,120
|
||||||
EQUITY AND LIABILITIES
|
||||||||
Equity
|
||||||||
Issued capital
|
5,304,452
|
5,304,452
|
||||||
Share premium
|
280,310,744
|
280,310,744
|
||||||
Other capital reserves
|
36,172,229
|
30,591,209
|
||||||
Accumulated deficit
|
(235,434,004
|
)
|
(213,975,679
|
)
|
||||
Other components of equity
|
13,086,220
|
3,050,270
|
||||||
Total equity
|
99,439,640
|
105,280,996
|
||||||
Non-current liabilities
|
||||||||
Lease liabilities
|
1,080,005
|
1,066,354
|
||||||
Other liabilities
|
39,879
|
35,019
|
||||||
Total non-current liabilities
|
1,119,884
|
1,101,373
|
||||||
Current liabilities
|
||||||||
Trade and other payables
|
7,438,427
|
8,574,244
|
||||||
Liabilities from government grants received
|
1,450,585
|
8,300,000
|
||||||
Lease liabilities
|
374,533
|
366,171
|
||||||
Employee benefits
|
1,151,288
|
1,378,130
|
||||||
Other financial liabilities
|
143,266
|
138,206
|
||||||
Total current liabilities
|
10,558,100
|
18,756,751
|
||||||
Total Liabilities
|
11,677,984
|
19,858,124
|
||||||
TOTAL EQUITY AND LIABILITIES
|
111,117,624
|
125,139,120
|
(in €, except for share data)
|
Issued
capital
|
Share
premium
|
Other
capital
reserves
|
Accumulated deficit
|
Other
components
of equity
|
Total equity
|
||||||||||||||||||
Balance as of January 1, 2022
|
5,304,452
|
280,310,744
|
30,591,209
|
(213,975,679
|
)
|
3,050,271
|
105,280,996
|
|||||||||||||||||
Loss for the period
|
—
|
—
|
—
|
(21,458,325
|
)
|
—
|
(21,458,325
|
)
|
||||||||||||||||
Exchange differences on translation of foreign currency
|
—
|
—
|
—
|
—
|
10,035,949
|
10,035,949
|
||||||||||||||||||
Total comprehensive loss
|
—
|
—
|
—
|
(21,458,325
|
)
|
10,035,949
|
(11,422,376
|
)
|
||||||||||||||||
Equity-settled share-based payment
|
—
|
—
|
5,581,021
|
—
|
—
|
5,581,021
|
||||||||||||||||||
Balance as of September 30, 2022
|
5,304,452
|
280,310,744
|
36,172,229
|
(235,434,004
|
)
|
13,086,220
|
99,439,640
|
|||||||||||||||||
Balance as of January 1, 2021
|
3,387,410
|
220,289,876
|
26,259,004
|
(168,345,620
|
)
|
(3,726,790
|
)
|
77,863,880
|
||||||||||||||||
Loss for the period
|
—
|
—
|
—
|
(32,961,235
|
)
|
—
|
(32,961,235
|
)
|
||||||||||||||||
Exchange differences on translation of foreign currency
|
—
|
—
|
—
|
—
|
4,613,675
|
4,613,675
|
||||||||||||||||||
Total comprehensive loss
|
—
|
—
|
—
|
(32,961,235
|
)
|
4,613,675
|
(28,347,560
|
)
|
||||||||||||||||
Issuance of common shares and warrants
|
1,873,203
|
63,269,346
|
—
|
—
|
—
|
65,142,549
|
||||||||||||||||||
Transaction costs
|
—
|
(4,219,222
|
)
|
—
|
—
|
—
|
(4,219,222
|
)
|
||||||||||||||||
Equity-settled share-based payment
|
—
|
—
|
3,823,592
|
—
|
—
|
3,823,592
|
||||||||||||||||||
Share options exercised
|
41,741
|
921,994
|
—
|
—
|
—
|
963,735
|
||||||||||||||||||
Balance as of September 30, 2021
|
5,302,354
|
280,261,994
|
30,082,596
|
(201,306,855
|
)
|
886,884
|
115,226,973
|
in €
|
For the nine months
ended September 30,
2022
(unaudited) |
For the nine months
ended September 30,
2021
(unaudited)
|
||||||
Operating activities
|
||||||||
Loss for the period
|
(21,458,325
|
)
|
(32,961,235
|
)
|
||||
Adjustments for:
|
||||||||
Depreciation & amortization of property and equipment, right-of-use assets and intangible assets
|
448,323
|
502,605
|
||||||
Net financial result
|
(3,080,904
|
)
|
(1,677,868
|
)
|
||||
Share-based payment expense
|
5,581,021
|
3,823,592
|
||||||
Net foreign exchange differences
|
189,088
|
(3,185
|
)
|
|||||
Changes in:
|
||||||||
Financial assets from government grants
|
(5,954,754
|
)
|
-
|
|||||
Other assets
|
3,087,177
|
(1,159,960
|
)
|
|||||
Employee benefits
|
(221,982
|
)
|
(438,436
|
)
|
||||
Other liabilities
|
5,061
|
12,130
|
||||||
Liabilities from government grants
|
(6,849,415
|
)
|
-
|
|||||
Trade and other payables
|
(1,135,817
|
)
|
3,259,223
|
|||||
Interest received
|
903,647
|
443,531
|
||||||
Interest paid
|
(38,978
|
)
|
(15,072
|
)
|
||||
Net cash used in operating activities
|
(28,525,857
|
)
|
(28,214,674
|
)
|
||||
Investing activities
|
||||||||
Purchase of intangible assets, property and equipment
|
(17,908
|
)
|
(21,691
|
)
|
||||
Purchase of current financial assets
|
(47,031,216
|
)
|
(40,512,715
|
)
|
||||
Proceeds from the maturity of financial assets
|
64,600,049
|
48,250,724
|
||||||
Net cash from investing activities
|
17,550,925
|
7,716,318
|
||||||
Financing activities
|
||||||||
Proceeds from issuance of common shares
|
—
|
65,142,549
|
||||||
Transaction costs from issuance of common shares
|
—
|
(4,219,222
|
)
|
|||||
Proceeds from exercise of share options
|
—
|
963,735
|
||||||
Repayment of lease liabilities
|
(273,092
|
)
|
(271,608
|
)
|
||||
Net cash from (used in) financing activities
|
(273,092
|
)
|
61,615,454
|
|||||
Net decrease/increase in cash and cash equivalents
|
(11,248,024
|
)
|
41,117,098
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
2,976,033
|
2,881,645
|
||||||
Cash and cash equivalents at beginning of period
|
26,249,995
|
25,968,681
|
||||||
Cash and cash equivalents at end of period
|
17,978,003
|
69,967,424
|