EX-99.1 2 dp49413_ex9901.htm EXHIBIT 99.1
Exhibit 99.1
 
Unaudited Condensed Consolidated Interim Financial Information as of June 30, 2014 and For the Six Months Ended June 30, 2014 and 2013
 
Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income
Condensed Consolidated Interim Statement of Financial Position
Condensed Consolidated Interim Statement of Cash Flows
Selected Additional Information to the Consolidated Financial Information
 
 

 
 
 

 

AURIS MEDICAL HOLDING AG
 
Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income (unaudited)
For the Six Months Ended June 30, 2014 and 2013 (in CHF)


 
 
Note
 
SIX MONTHS ENDED JUNE 30 2014
   
SIX MONTHS ENDED JUNE 30 2013
 
Research and development
      -8,350,008       -6,384,347  
General and administrative
      -2,554,288       -732,210  
                   
Operating loss
      -10,904,296       -7,116,557  
                   
Finance expense
      -68,031       -11,366  
Finance income
      121,144       51,119  
                   
Loss before tax
      -10,851,183       -7,076,804  
                   
Net loss for the period attributable to owners of the Company
      -10,851,183       -7,076,804  
                   
Other comprehensive income:
                 
Items that will never be reclassified to profit or loss
                 
Remeasurements of defined benefit liability
      -423,811       91,981  
Items that are or may be reclassified to profit or loss
                 
Foreign currency translation differences
      2,817       -25,915  
                   
Other comprehensive income for the period, net of tax
      -420,994       66,066  
                   
Total comprehensive loss for the period attributable to owners of the Company
      -11,272,177       -7,010,738  
                   
Basic and diluted loss per share
6
    -0.59       -0.52  


 
 
2

 

AURIS MEDICAL HOLDING AG
 
Condensed Consolidated Interim Statement of Financial Position
As of June 30, 2014 (unaudited), and December 31, 2013
(in CHF)
 

 
         
June 30,
   
December 31,
 
   
Note
   
2014
   
2013
 
ASSETS
                 
Non-current assets
                 
Property and equipment
          251,095       195,915  
Intangible assets
          1,482,520       1,482,520  
                       
Total non-current assets
          1,733,615       1,678,435  
                       
Current assets
                     
Other receivables
          694,396       524,786  
Prepayments
          713,889       183,137  
Cash and cash equivalents
          12,130,954       23,865,842  
                       
Total current assets
          13,539,239       24,573,765  
                       
Total assets
          15,272,854       26,252,200  
                       
EQUITY AND LIABILITIES
                     
Equity
                     
Share capital
            7,536,510       6,487,130  
Share premium
            48,232,566       35,608,210  
Foreign currency translation reserve
            56,812       53,995  
Accumulated deficit
            -44,295,487       -33,115,689  
Total shareholders’ equity attributable to owners of the Company
            11,530,401       9,033,646  
                         
Non-current liabilities
                       
Employee benefits
    5       745,440       328,342  
Deferred tax liabilities
            327,637       327,637  
                         
Total non-current liabilities
            1,073,077       655,979  
                         
Current liabilities
                       
Convertible loans
    4       -       13,711,200  
Trade and other payables
            1,105,180       954,257  
Accrued expenses
            1,564,196       1,897,118  
                         
Total current liabilities
            2,669,376       16,562,575  
                         
Total liabilities
            3,742,453       17,218,554  
                         
Total equity and liabilities
            15,272,854       26,252,200  
 

 
 
3

 
 
AURIS MEDICAL HOLDING AG
 
Condensed Consolidated Interim Statement of Cash Flows (unaudited)
For the Six Months Ended June 30, 2014 and 2013 (in CHF)
 

 
   
Note
   
SIX MONTHS ENDED JUNE 30 2014
   
SIX MONTHS ENDED JUNE 30 2013
 
Cash flows from operating activities
                 
Net loss
          -10,851,183       -7,076,804  
Adjustments for:
                     
Depreciation
          34,006       13,562  
Unrealized exchange differences
          2,835       -25,686  
Net interest income
          19,750       -2,181  
Share based payments
    5       95,197       51,325  
Employee benefits
            -6,713       17,995  
                         
Changes in:
                       
Other receivables
            -169,492       -17,091  
Prepayments
            -530,752       72,325  
Trade and other payables
            150,901       139,438  
Accrued expenses
            -332,923       1,110,023  
                         
Cash used in operating activities
            -11,588,374       -5,717,094  
                         
Cash flows from investing activities
                       
Purchase of property and equipment
            -89,185       -30,233  
Sale of financial assets
            -       -  
Interest received
            29,885       12,096  
                         
Net cash used in investing activities
            -59,300       -18,137  
                         
Cash flows from financing activities
                       
Proceeds from share capital increase
            49,600       24,480,060  
Share issuance costs
            -136,699       -242,115  
Interest paid
            -       -9,915  
                         
Net cash from financing activities
            -87,099       24,228,030  
                         
Net increase/(decrease) in cash and cash equivalents
            -11,734,773       18,492,799  
Cash and cash equivalents at beginning of the period
            23,865,842       63,967  
Net effect of currency translation on cash
            -115       614  
                         
Cash and cash equivalents at end of the period
            12,130,954       18,557,380  
 


 
4

 
AURIS MEDICAL HOLDING AG
Additional information to the consolidated financial information
as of June 30, 2014 and for the six months ended June 30, 2014 and  2013 (in CHF)
 
 
 
1.  
Reporting entity
 
Auris Medical Holding AG (the “Company”) is domiciled in Switzerland. The Company’s registered address is at Bahnhofstrasse 21, 6300 Zug. These consolidated interim financial information comprise the Company and its subsidiaries (together referred to as the “Group” and individually as “Group entities”). The Company is the ultimate parent of the following Group entities:
 
 
§
Auris Medical AG, Basel, Switzerland (100%)
 
 
§
Otolanum AG, Zug, Switzerland (100%)
 
 
§
Auris Medical Inc., Chicago, United States (100%)
 
 
§
Auris Medical Ltd., Dublin, Ireland (100%)
 
On April 22, 2014, we changed our name from Auris Medical AG to Auris Medical Holding AG and transferred our operational business to our newly incorporated subsidiary Auris Medical AG, which is now our main operating subsidiary. The Group is primarily involved in the development of pharmaceutical products for the treatment of inner ear disorders, in particular tinnitus and hearing loss. Its most advanced projects are in the late stage of clinical development.
 
 
2.
Basis of preparation
 
This interim financial information has been prepared using the same accounting policies and methods of computation as compared with the most recent annual financial statements. The financial information included here-in is not intended to fully comply with IFRS, and in particular with IAS 34. New accounting standards, which have been applied in 2014 for the first time, did not have an impact on the company’s financial position, results or cash flows.

The financial information included in this quarterly press release and shareholder information has not been reviewed or audited by our auditors. Quarter results are not necessarily indicative of results to be expected for the full year.
 
The Group has not early adopted any standard, interpretation or amendment that was issued but is not yet effective.
 
 
 
5

 
 
AURIS MEDICAL HOLDING AG
Additional information to the consolidated financial information
as of June 30, 2014 and for the six months ended June 30, 2014 and 2013 (in CHF)
 
 
 
3.
Capital and reserves
 
Share capital
 
The issued share capital of Auris Medical Holding AG consisted of:
 
    AS OF JUNE 30, 2014     AS OF DECEMBER 31, 2013
    NUMBER     CHF     NUMBER     CHF
Common shares with a nominal value of CHF 0.40 each
    88,100       35,240       72,600       29,040
Preferred shares Series A with a nominal value of CHF 0.40 each
    5,999,750       2,399,900       5,999,750       2,399,900
Preferred shares Series B with a nominal value of CHF 0.40 each
    5,509,100       2,203,640       5,509,100       2,203,640
Preferred shares Series C with a nominal value of CHF 0.40 each
    7,244,325       2,897,730       4,636,375       1,854,550
      18,841,275       7,536,510       16,217,825       6,487,130
 
All shares are fully paid in. All disclosed numbers and nominal value of shares in these interim financial statements are adjusted for the 25:1 stock split effected in December 2013 unless otherwise indicated.
 
  Common shares   Preferred shares
  2014 2013   2014 2013
           
As of January 1
72,600
72,600
 
16,145,225
11,508,850
Common shares with a nominal value of CHF 0.40 each
15,500
-
 
2,607,950
-
As at June 30, 2014, and June 30, 2013
88,100
72,600
 
18,753,175
11,508,850
 
Issue of common shares upon exercise of options
 
On January 21, 2014, three beneficiaries of Option Plan A exercised their right to acquire common shares of the Company at CHF 3.20 per share. This resulted in an increase in the number of outstanding common shares of 15,500 and an increase in the share capital of CHF 6,200. Total proceeds from the exercise to the company were CHF 49,600.

 
 
6

 
 
 
AURIS MEDICAL HOLDING AG
Additional information to the consolidated financial information
as of June 30, 2014 and for the six months ended June 30, 2014 and 2013 (in CHF)
 
 
4.
Convertible loans
 
On December 9, 2013, the Company issued non-interest bearing convertible loans to two shareholders with a nominal value of CHF 13,769,976 and a maximum term of 12 months. On January 27, 2014, the loans were converted into new registered Series C shares with nominal value of CHF 0.40 each for CHF 5.28 per share. The company issued 2,607,950 Series C shares with a nominal value of CHF 0.40 each.
 
On the conversion date of the loan, the liability was derecognized and CHF 1,043,180 was recognized as share capital and CHF 12,717,655 as share premium.
 
 
JUNE 30,
2014
Convertible loans as at December 31
13,711,200
Loss on derecognition
9,141
Imputed interest expense for the period
49,635
Derecognition of liability at conversion into equity 13,769,976
Convertible loans at June 30, 2014
-
 
 
 
5.
Employee benefits

 
SIX MONTHS
ENDED JUNE 30,
2014
SIX MONTHS
ENDED JUNE 30,
2013
Salaries
980,518 356,110
Pension costs 59,547  39,387
Other social benefits  82,149  30,425
Share option cost 95,197 51,325
Other employee cost 97,871 44,774
Total employee benefits
1,315,280 522,021

 
6.
Loss per share
 
 
SIX MONTHS
ENDED JUNE 30,
2014
SIX MONTHS
ENDED JUNE 30,
2013
Loss attributable to owners of the Company -10,851,183 -7,076,804
Weighted average number of shares outstanding 18,448,274 13,616,303
Basic and diluted loss per share -0.59 -0.52
 
For the periods ended June 30, 2014 and 2013 basic and diluted loss per share is based on the weighted average number of shares issued and outstanding and excludes shares to be issued under the stock option plans (Note 7) and, for the 2013 period only, conversion rights related to the convertible loans (Note 8) as they would be anti-dilutive. In case the Group shows a profit in the future, the options may have a dilutive effect on earnings per share and will need to be included in the above calculation.

 
7

 
 
AURIS MEDICAL HOLDING AG
Additional information to the consolidated financial information
as of June 30, 2014 and for the six months ended June 30, 2014 and 2013 (in CHF)
 
 
 
7.
Related party transactions
 
In January 2014 the convertible loan lenders exercised their conversion option, and the total loan amount of CHF 13,769,976 was converted into 2,607,950 Series C shares of the Company (See Note 8).
 
The service agreement with Altamira Pharma GmbH, a company fully owned by the CEO, was terminated as of January 31, 2014 with a final payment of CHF 14,500. From 2011, the CEO had been compensated under this agreement. The Company entered into an employment contract with the CEO effective January 1, 2014.  
 
 
8.
Events after the balance sheet date

On August 6, 2014, the underwriters for the Company’s IPO subscribed to 9,400,000 shares at USD 6.00 per share yielding gross proceeds (before underwriting fees and IPO costs) of USD 56.4 million. The shares started trading under the ticker symbol EARS on the NASDAQ Global Market on August 7, 2014.
 
On August 13, 2014, the underwriters exercised their overallotment option for 713,235 shares of the Company, resulting in gross proceeds of USD 4.3m
 
The combined net proceeds after underwriting fees are USD 56.4 million. Following the IPO and the issue of shares under the underwriter overallotment option, there are 28,954,510 common shares of the Company outstanding.
 
 
 
8