UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of August 2022
Commission File Number: 001-38283
(Translation of registrant's name into English) |
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
EXPLANATORY NOTE
Exhibits 99.1 and 99.2 to this Report on Form 6-K shall be deemed to be incorporated by reference into (i) the registration statement on Form S-8 (File No. 333-221656) and (ii) the registration statement on Form F-3 (File No. 333-239759) of InflaRx N.V. and to be a part thereof from the date on which this report is submitted, to the extent not superseded by documents or reports subsequently filed or furnished.
Exhibit 99.3 to this Report on Form 6-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act.
2 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| INFLARX N.V. | ||
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| ||
Date: August 5, 2022 | By: | /s/ Niels Riedemann |
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| Name: | Niels Riedemann |
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| Title: | Chief Executive Officer |
|
3 |
EXHIBIT INDEX
Exhibit No. |
| Description | |
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| |||
| InflaRx N.V. Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||
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| |
101.INS |
| Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |
| |||
101.SCH |
| Inline XBRL Taxonomy Extension Schema Document | |
| |||
101.CAL |
| Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
| |||
101.DEF |
| Inline XBRL Taxonomy Extension Definition Linkbase Document | |
| |||
101.LAB |
| Inline XBRL Taxonomy Extension Label Linkbase Document | |
| |||
101.PRE |
| Inline XBRL Taxonomy Extension Presentation Linkbase Document |
4 |
EXHIBIT 99.1
INFLARX N.V.
UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS - JUNE 30, 2022
These unaudited condensed financial statements are consolidated financial statements for the group consisting of InflaRx N.V. and its wholly-owned subsidiaries InflaRx GmbH, Jena, Germany, and InflaRx Pharmaceutical Inc., Ann Arbor, Michigan, United States (together, the “Group”). The financial statements are presented in Euro (€).
InflaRx N.V. is a company limited by shares, incorporated and domiciled in Amsterdam, The Netherlands.
Its registered office and principal place of business is in Germany, Jena, Winzerlaer Str. 2.
INDEX TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
THREE AND SIX MONTHS ENDED JUNE 30, 2022
Unaudited Condensed Consolidated Financial Statements |
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Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and six months ended June 30, 2022 and 2021. |
| 3 |
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Unaudited Condensed Consolidated Statements of Financial Position as of June 30, 2022 and December 31, 2021. |
| 4 |
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Unaudited Condensed Consolidated Statements of Changes in Shareholders’ Equity for the six months ended June 30, 2022 and 2021. |
| 5 |
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Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021. |
| 6 |
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Notes to the Unaudited Condensed Consolidated Financial Statements. |
| 7 |
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| Summary of significant accounting policies and other disclosures. |
| 7 |
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| Reporting entity and Group’s structure. |
| 7 |
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| Basis of preparation. |
| 7 |
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| Significant events of the quarter and changes in circumstances. |
| 8 |
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| Other income. |
| 9 |
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| Net financial result. |
| 10 |
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| Other assets. |
| 11 |
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| Financial assets and financial liabilities. |
| 11 |
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| Cash and cash equivalents. |
| 12 |
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| Equity. |
| 12 |
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| Share-based payments. |
| 12 |
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| Equity settled share-based payment arrangements. |
| 12 |
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| Share-based payment expense recognized. |
| 14 |
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| Protective foundation. |
| 14 |
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2 |
InflaRx N.V. and subsidiaries
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss
for the three and six months ended June 30, 2022 and 2021
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| For the three months ended June 30, |
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| For the six months ended June 30, |
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(in €, except for share data) |
| Note |
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| 2022 (unaudited) |
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| 2021 (unaudited) |
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| 2022 (unaudited) |
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| 2021 (unaudited) | |||||
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Operating Expenses |
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Research and development expenses |
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| ( | ) |
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| ( | ) |
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| ( | ) |
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| ( | ) | |
General and administrative expenses |
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| ( | ) |
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| ( | ) |
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| ( | ) |
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| ( | ) | |
Total Operating Expenses |
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| ( | ) |
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| ( | ) |
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Other income |
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| 2 |
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Other expenses |
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| ( | ) |
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| ( | ) |
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| ( | ) |
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| ( | ) |
Operating Result |
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| ( | ) |
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| ( | ) |
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Finance income |
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| 3 |
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Finance expenses |
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| 3 |
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| ( | ) |
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| ( | ) |
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| ( | ) |
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| ( | ) |
Foreign exchange result |
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| 3 |
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| ( | ) |
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Other financial result |
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| 3 |
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Income Taxes |
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Income (Loss) for the Period |
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Share Information |
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Weighted average number of shares outstanding |
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Income (Loss) per share (basic/diluted) |
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| ( | ) |
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Other comprehensive income (loss) that may be reclassified to profit or loss in subsequent periods: |
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Exchange differences on translation of foreign currency |
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| ( | ) |
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Total Comprehensive Income (Loss) |
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| ( | ) |
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| ( | ) |
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| ( | ) |
The accompanying notes are an integral part of these condensed consolidated financial statements.
3 |
InflaRx N.V. and subsidiaries
Unaudited Condensed Consolidated Statements of Financial Position
as of June 30, 2022 and December 31, 2021
(in €) |
| Note |
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| June 30, 2022 (unaudited) |
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| December 31, 2021 |
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ASSETS |
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Non-current assets |
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Property and equipment |
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Right-of-use assets |
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Intangible assets |
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Other assets |
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| 4 |
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Financial assets |
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| 5 |
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Total non-current assets |
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Current assets |
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Current other assets |
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| 4 |
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Current tax assets |
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Financial assets from government grants |
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| 5 |
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Other financial assets |
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| 5 |
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Cash and cash equivalents |
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| 6 |
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Total current assets |
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TOTAL ASSETS |
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EQUITY AND LIABILITIES |
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Equity |
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Issued capital |
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| 7 |
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Share premium |
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| 7 |
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Other capital reserves |
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Accumulated deficit |
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| ( | ) |
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| ( | ) |
Other components of equity |
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Total equity |
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Non-current liabilities |
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Lease liabilities |
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| 5 |
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Other liabilities |
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Total non-current liabilities |
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Current liabilities |
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Trade and other payables |
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| 5 |
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Liabilities from government grants |
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| 5 |
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Lease liabilities |
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| 5 |
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Employee benefits |
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Other liabilities |
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Total current liabilities |
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Total Liabilities |
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TOTAL EQUITY AND LIABILITIES |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
4 |
InflaRx N.V. and subsidiaries
Unaudited Condensed Consolidated Statements of Changes in Shareholders’ Equity
for the six months ended June 30, 2022 and 2021
(in €, except for share data) |
| Note |
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| Shares outstanding |
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| Issued capital |
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| Share premium |
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| Other capital reserves |
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| Accumulated deficit |
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| Other components of equity |
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| Total equity |
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Balance as of January 1, 2022 |
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| ( | ) |
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Loss for the period |
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| - |
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| ( | ) |
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| ( | ) | |||||
Exchange differences on translation of foreign currency |
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| - |
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Total comprehensive loss |
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| - |
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| ( | ) |
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| ( | ) | |||||
Equity-settled share-based payments |
|
| 8 |
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| - |
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Balance as of June 30, 2022* |
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| ( | ) |
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Balance as of January 1, 2021 |
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| ( | ) |
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| ( | ) |
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Loss for the period |
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| - |
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| ( | ) |
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| ( | ) | ||||
Exchange differences on translation of foreign currency |
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| - |
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Total comprehensive loss |
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| - |
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| ( | ) |
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| ( | ) | ||||
Issuance of common shares and warrants |
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Transaction costs |
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| - |
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| ( | ) |
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| ( | ) | ||||
Equity-settled share-based payments |
|
| 8 |
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| - |
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Share options exercised |
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| 8 |
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Balance as of June 30, 2021* |
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| ( | ) |
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*unaudited
The accompanying notes are an integral part of these condensed consolidated financial statements.
5 |
InflaRx N.V. and subsidiaries
Unaudited Condensed Consolidated Statements of Cash Flows
for the six months ended June 30, 2022 and 2021
(in €) |
| Note |
|
| For the six months ended June 30, 2022 (unaudited) |
|
| For the six months ended June 30, 2021 (unaudited) |
| |||
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Operating activities |
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Loss for the period |
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| ( | ) |
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| ( | ) | |
Adjustments for: |
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Depreciation & amortization of property and equipment, right-of-use assets and intangible assets |
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Net finance income |
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| ( | ) |
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| ( | ) | |
Share-based payment expense |
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| 7 |
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Net foreign exchange differences |
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Changes in: |
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Financial assets from government grants |
|
| 5 |
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| ( | ) |
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| |
Other assets |
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Employee benefits |
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| ( | ) |
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| ( | ) |
Other liabilities |
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| ( | ) |
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| |
Liabilities from government grants |
|
| 5 |
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| ( | ) |
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| |
Trade and other payables |
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| ( | ) |
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Interest received |
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Interest paid |
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| ( | ) |
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| ( | ) |
Net cash used in operating activities |
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| ( | ) |
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| ( | ) |
Investing activities |
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Purchase of intangible assets, property and equipment |
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| ( | ) |
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| ( | ) |
Purchase of current financial assets |
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| ( | ) |
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| ( | ) |
Proceeds from the maturity of financial assets |
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Net cash from investing activities |
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| ( | ) | |
Financing activities |
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Proceeds from issuance of common shares |
|
| 6 |
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Transaction costs from issuance of common shares |
|
| 6 |
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| ( | ) | |
Proceeds from exercise of share options |
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| 7 |
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Repayment of lease liabilities |
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| ( | ) |
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| ( | ) |
Net cash from (used in) financing activities |
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| ( | ) |
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Net decrease increase in cash and cash equivalents |
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| ( | ) |
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Effect of exchange rate changes on cash and cash equivalents |
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Cash and cash equivalents at beginning of period |
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Cash and cash equivalents at end of period |
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| 5 |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
6 |
InflaRx N.V. and subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements
Summary of significant accounting policies and other disclosures
Reporting entity and Group’s structure
InflaRx N.V. is a Dutch public company with limited liability (naamloze vennootschap) with its corporate seat in Amsterdam, The Netherlands, and is registered in the Commercial Register of The Netherlands Chamber of Commerce Business Register under CCI number 68904312. The Company’s registered office is at Winzerlaer Straße 2 in 07745 Jena, Germany. Since November 10, 2017, InflaRx N.V.’s common shares have been listed on The NASDAQ Global Select Market under the symbol IFRX.
InflaRx is a clinical-stage biopharmaceutical Group focused on applying its proprietary anti-C5a and C5aR technologies to discover and develop first-in-class, potent and specific inhibitors of the complement activation factor known as C5a and its receptor known as C5aR.
These consolidated financial statements of InflaRx comprise the Company and its wholly-owned subsidiaries InflaRx GmbH, Jena, Germany and InflaRx Pharmaceutical Inc., Ann Arbor, Michigan, United States (together referred to as “the Group”).
InflaRx GmbH is a clinical-stage biopharmaceutical company founded in 2008. In 2017, InflaRx N.V. became the sole shareholder of InflaRx GmbH through the contribution of the subsidiary’s shares to InflaRx N.V. by its existing shareholders in exchange of new shares issued by InflaRx N.V.
Basis of preparation
These interim condensed consolidated financial statements for the three- and six-month reporting periods ended June 30, 2022 and 2021 have been prepared in accordance with IAS 34 Interim Financial Reporting. These condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements. Accordingly, this report is to be read in conjunction with the financial statements in our annual report for the year ended December 31, 2021 on Form 20-F.
The interim condensed consolidated financial statements were authorized for issue by the Board of Directors on August 4, 2022.
The financial statements are presented in Euro (€). Euro is the functional currency of InflaRx GmbH. The functional currency of InflaRx N.V. and InflaRx Pharmaceutical Inc. is U.S. Dollars. All financial information presented in Euro has been rounded. Accordingly, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that precede them or may deviate from other tables.
The accounting policies adopted are consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year ended December 31, 2021, except for the adoption of new standards effective as of January 1, 2022 as set out below. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.
The following amendments have been adopted effective January 1, 2022 and do not have a material impact on the consolidated financial statements of the Group:
| · | 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’ 5 |
7 |
The following standards issued will be adopted in a future period and the potential impact, if any, they will have on the Group’s consolidated financial statements is being assessed:
| · | IFRS 17 Insurance Contracts |
| · | Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Noncurrent and Classification of Liabilities as Current or Non-current |
| · | Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates |
| · | 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 |
Significant events of the quarter and changes in circumstances
Russian-Ukraine Conflict
The conflict between Russia and Ukraine has resulted, and is expected to further result, in significant disruption, instability and volatility in global markets, as well as higher energy and other commodity prices. Since the Company is not currently conducting any business or receiving any services from vendors located in Russia or Ukraine, it does not expect that the ongoing war will have a direct impact on its operations in the near term. However, the Company may be affected by price increases or certain fiscal policy changes in Germany, where the Company is headquartered, such as new tax legislation, economic sanctions and comparable measures, although at this point, it does not foresee any such macroeconomic changes that are expected to have a direct impact on its business operations.
COVID-19 Pandemic
The COVID-19 pandemic continues to impact our operations as many governments continue to maintain measures to slow the spread of the outbreak through quarantines, travel restrictions, closure of borders and requiring maintenance of social distancing measures.
During the first six months of 2022, the Company has continued to use a hybrid working model that supports a blend of in-office and remote employees, depending on their role and location. Our service providers have continued at regular operational levels, and the recruitment of patients and new clinical trial sites also continued in the first six months of 2022 through the date of issuance of these interim financial statements. Business travel, however, has been significantly reduced and widely replaced by other means of communication, e.g. through video-conferencing.
Development programs
On May 12, 2022 the Company announced the results of a strategic review of its development programs considering the current financing environment. As a result of this strategic review, the Company decided to halt the clinical development of vilobelimab in HS for the time being. Furthermore, given the resources required and long duration of necessary Phase III studies of vilobelimab in AAV needed to potentially gain regulatory approval in this indication, the Company also decided to halt the clinical development of vilobelimab in AAV for the time being. Moving forward, the development focus will be on the Phase III development of vilobelimab in PG, on gaining regulatory approval for vilobelimab in severe COVID-19 and in starting the clinical development of INF904.
On June 29, 2022, the Company announced that vilobelimab has been granted orphan drug designation for the treatment of PG by both the Food and Drug Administration (FDA) in the US and the European Medicines Agency (EMA) in Europe. In addition, the Company reported about a productive end-of-phase II meeting with the FDA related to its plans for a Phase III development program in PG. The FDA indicated its support for a randomized, controlled Phase III development program during the meeting and offered to review the study protocol, recognizing PG as a serious and rare condition. Based on the FDA’s feedback and recommendations, InflaRx is now finalizing the design for a Phase III trial and continues to be in dialogue with the FDA related to this. Subsequently, on July 6, 2022 the Company announced that the FDA has also granted a Fast Track designation to the development of vilobelimab for the treatment of PG.
8 |
Following the encouraging Phase III results from the randomized, placebo-controlled, multi-national PANAMO study in mechanically ventilated severe COVID-19 patients announced on March 31, 2022, on July 26, 2022, InflaRx announced its plans to submit a request for Emergency Use Authorization (EUA), following constructive interactions with the US Food and Drug Administration (FDA) at a recently held Type B meeting. The application for EUA is planned to be submitted by end of Q3 2022. In addition, the Company is in ongoing dialogue with the EMA related to next regulatory steps for vilobelimab in mechanically ventilated severe COVID-19 patients towards a potential filing for approval for this indication.
Management changes
On June 29, 2022, the Company announced the departure of Mr. Jordan Zwick, its Chief Strategy Officer. Mr. Zwick left InflaRx to pursue other professional opportunities. However, Mr. Zwick agreed to continue to serve as an advisor to the Company.
In July, Dr. Korinna Pilz, the Chief Clinical Development Officer informed the Company about her intention to leave InflaRx for personal reasons. The Company subsequently signed a separation agreement with Dr. Pilz, in which the parties mutually agreed that she will continue to provide her services until October 28, 2022. Beyond this date Dr. Pilz will continue to advise us on specific matters on an as needed basis.
Other income
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Other income from government grants |
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Further other incomes |
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Total |
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Other income increased by €
A portion of this increase is attributable to the recognition of €
Going forward, the Company will recognize other income as reimbursable costs under the grant are incurred. Grant payments received for the Company’s pre-payment of goods and services will be recognized as a liability, while reimbursable amounts for costs incurred but not yet claimed for reimbursement will be recorded as other receivables in “Financial assets in government grants.”
9 |
Net financial result
The net financial result is comprised of the following items for the three and six months ended June 30:
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Financial income |
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Interest income |
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Financial expenses |
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Interest expenses |
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Interest on lease liabilities |
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Total |
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Interest income results from marketable securities and short-term deposits in U.S. Dollars held by the Company and its subsidiaries.
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Foreign exchange result |
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Foreign exchange income |
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Foreign exchange expense |
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Total |
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Foreign exchange income and expense is mainly derived from the translation of the U.S. Dollar cash, cash equivalents and securities held by the Company and its subsidiaries.
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(in €) |
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Other financial result |
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Other financial result includes an allowance for expected credit loss on marketable securities.
10 |
Other assets
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Non-current other assets |
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Prepaid expense |
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Total |
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Current other assets |
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Prepayments on research & development projects |
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Current tax assets |
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Prepaid expense |
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Other |
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Total |
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Prepaid expense mainly consisted of prepaid insurance expense.
As of June 30, 2022, prepayments on research & development (R&D) projects amounted to €
Financial assets and financial liabilities
Set out below is an overview of financial assets and liabilities, other than cash and cash equivalents, held by the Group as of June 30, 2022 and December 31, 2021:
(in €) |
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Financial assets at amortized cost |
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Non-current financial assets |
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| 27,206,990 |
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Financial assets from government grants |
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Other current financial assets |
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Financial liabilities at amortized cost |
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Liabilities from government grants |
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Trade and other payables |
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Interest bearing loans and borrowings |
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Non-current lease liabilities |
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Current lease liabilities |
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As of June 30, 2022, financial assets from government grants amount to €
As of June 30, 2022, the fair value of current and non-current financial assets (primarily quoted debt securities) amounted to €
Liabilities from government grants partly comprise funds received for advance payments to third parties. If goods or services from such third parties have not been received, corresponding amounts are not recognized as other income. Our right to retain these funds is contingent on meeting all grant conditions.
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Cash and cash equivalents
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Short-term deposits |
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Deposits held in U.S Dollars |
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Total |
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Cash at banks |
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Cash held in Euro |
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Total |
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Total cash and cash equivalents |
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Equity
On July 8, 2020,
On February 25, 2021, the Company sold an aggregate of
Share-based payments
Equity settled share-based payment arrangements
During its historical financing rounds prior to 2016, InflaRx GmbH granted stock options under the 2012 Stock Option Plan. Those InflaRx GmbH options were converted into options for common shares of InflaRx N.V. in November 2017:
Number of share options under the 2012 Plan |
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Outstanding as of January 1, |
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Exercised during the six months ended June 30 |
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thereof vested |
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12 |
Under the terms and conditions of the Share Option Plan 2016, InflaRx GmbH granted rights to subscribe for InflaRx GmbH’s common shares to directors, senior management and key employees. Those InflaRx GmbH options were converted into options for common shares of InflaRx N.V. in November 2017:
Number of share options under the 2016 Plan |
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Exercised during the six months ended June 30 |
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thereof vested |
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In conjunction with the closing of its initial public offering, InflaRx N.V. established a new incentive plan, the 2017 Long-Term Incentive Plan (“LTIP”). The initial maximum number of options to common shares available for issuance pursuant to the LTIP amounted to
At the annual general meeting on July 16, 2020, the Company’s shareholders approved an amendment to the LTIP with effect from January 1, 2021:
| · | 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 |
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| · | 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 |
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Exercised during the six months ended June 30 |
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Forfeited during the six months ended June 30 |
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thereof vested |
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On April 13, 2022, following the significant and persistent decrease of the stock price of the Company's common shares during the first half year 2022 and especially after March 31, 2022, the Board of Directors assessed its impact on the value of the options to purchase common shares in the Company's capital awarded under the LTIP and concluded that due to the extraordinary situation and in order to ensure that the options continue to be an appropriate performance incentive for the Company’s management, employees and directors, the exercise price of all outstanding and unexercised options held by active employees or directors of the Company or its affiliates would be adjusted to $
The repricing decision on April 13, 2022 affected the 2016 Plan and the LTIP.
13 |
The number of share options granted during the six months ended June 30, 2022 under the LTIP was as follows:
Share options granted |
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The number of share options granted during the six months ended June 30, 2022 under the LTIP, considering the repricing decision on April 13, 2022 was as follows:
Share options granted |
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Of the 1,561,666 options granted in the six months ended June 30, 2022,
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Expected dividends are nil for all share options listed above. |
Share-based payment expense recognized
For the six months ended June 30, 2022, the Company recognized €
Protective foundation
According to the articles of association of the Company, up to
In order to deter acquisition bids, the Company's general meeting of shareholders approved the right of an in-dependent foundation under Dutch law, or protective foundation, to exercise a call option pursuant to the call option agreement, upon which preferred shares will be issued by the Company to the protective foundation of up to 100% of the Company’s issued capital held by others than the protective foundation, minus one share. The protective foundation is expected to enter into a finance arrangement with a bank or, subject to applicable restrictions under Dutch law, the protective foundation may request us to provide, or cause the Company’s subsidiaries to provide, sufficient funding to the protective foundation to enable it to satisfy its payment obligation under the call option agreement.
These preferred shares will have both a liquidation and dividend preference over the Company's common shares and will accrue cash dividends at a pre-determined rate. The protective foundation would be expected to require us to cancel its preferred shares once the perceived threat to the Company and its stakeholders has been removed or sufficiently mitigated or neutralized. We believe that the call option does not represent a significant fair value based on a Level 3 valuation, since the preference shares are restricted in use and can be cancelled by us.
In the three and six months ended June 30, 2022, the Company expensed €
14 |
EXHIBIT 99.2
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This management’s discussion and analysis is designed to provide you with a narrative explanation of our financial condition and results of operations. We recommend that you read this discussion together with our unaudited condensed consolidated financial statements, including the notes thereto, for the three- and six- month periods ended June 30, 2022 and 2021, respectively, included as Exhibit 99.1 to the Report on Form 6-K to which this discussion is attached as Exhibit 99.2. We also recommend that you read our management’s discussion and analysis and our audited consolidated financial statements for fiscal year 2021, and the notes thereto, which appear in our Annual Report on Form 20-F for the year ended December 31, 2021 (the “Annual Report”) filed with the U.S. Securities and Exchange Commission (the “SEC”). In addition, we recommend that you read any public announcements made by InflaRx N.V.
The following discussion is based on our financial information prepared in accordance with IFRS as issued by the IASB, which may differ in material respects from generally accepted accounting principles in the United States and other jurisdictions. We maintain our books and records in Euros. Unless otherwise indicated, all references to currency amounts in this discussion are in Euros. We have made rounding adjustments to some of the figures included in this discussion and analysis. Accordingly, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that precede them.
The following discussion includes forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including but not limited to those described under “ITEM 3. KEY INFORMATION—C. Risk factors” in the Annual Report.
Unless otherwise indicated or the context otherwise requires, all references to “InflaRx” or the “company,” “we,” “our,” “ours,” “us” or similar terms refer to InflaRx N.V. and its subsidiaries InflaRx GmbH and InflaRx Pharmaceuticals, Inc.
Overview
We are a clinical-stage biopharmaceutical company focused on applying our proprietary anti-C5a and C5aR technologies to discover and develop first-in-class, potent and specific inhibitors of the complement activation factor known as C5a and its receptor known as C5aR. C5a is a powerful inflammatory mediator involved in the progression of a wide variety of autoimmune and other inflammatory diseases. Our lead product candidate, vilobelimab, is a novel intravenously delivered first-in-class anti-C5a monoclonal antibody that selectively binds to free C5a and has demonstrated disease-modifying clinical activity and tolerability in multiple clinical settings.
Severe COVID-19
We are developing vilobelimab in severe COVID-19. In March 2020, we initiated a randomized open label multicenter trial Phase II/III clinical development program (PANAMO) with vilobelimab in severe COVID-19 patients with severely progressed pneumonia. In the Phase II part of the study, we evaluated vilobelimab treatment plus best supportive care compared to best supportive care alone for up to 28 days. Vilobelimab treatment was associated with a lower 28-day all-cause mortality when compared to the best supportive care group, along with trends in disease improvement, as evidenced by fewer patients experiencing renal impairment assessed by estimated glomerular filtration rates, more patients showing reversal of blood lymphocytopenia and a greater lowering of lactate dehydrogenase concentrations.
II-1 |
On March 31, 2022, we announced Phase III top-line results from the PANAMO study of vilobelimab in mechanically ventilated patients with COVID-19. Vilobelimab treatment resulted in a relative reduction in 28-day all-cause mortality by 23.9% compared to placebo but did not show statistical significance on the pre-specified primary endpoint. Three pre-specified subgroup analyses assessed the treatment effect of vilobelimab in patients with higher baseline disease severity. These analyses all showed a statistically significant signal towards a reduction in 28-day all-cause mortality in the vilobelimab arm compared to the placebo arm in mechanically ventilated patients with one or more additional organ support, captured as baseline ordinal scale of 7, in patients with severe acute respiratory distress syndrome (ARDS) and in patients with kidney impairment. A pre-specified analysis of patients from Western European countries also showed a statistically significant relative reduction in 28-day all-cause mortality of 43% (p=0.014), suggesting an improvement in mortality in line with the reported Phase II data of the PANAMO trial. 60-day all-cause mortality, a key secondary endpoint, showed a continued reduction of mortality in the vilobelimab arm. Following the encouraging Phase III results from the PANAMO trial, on July 26, 2022, we announced our plans to submit a request for Emergency Use Authorization (EUA), following constructive interactions with the U.S. Food and Drug Administration (FDA) at a recently held Type B meeting. The application for EUA is planned to be submitted by end of Q3 2022. In addition, we are in ongoing dialogue with the EMA related to next regulatory steps for vilobelimab in mechanically ventilated severe COVID-19 patients towards a potential filing for approval for this indication.
On October 19, 2021, we announced that we received a grant of up to €43.7 million from the German Ministry of Education and Research and the German Ministry of Health to support our development of vilobelimab for the treatment of severe COVID-19 patients. The grant is structured as a reimbursement of 80% of certain pre-specified expenses related to the clinical development and manufacturing of vilobelimab and awarded in four tranches. Each subsequent tranche is conditional on reaching agreed-upon development and manufacturing-related milestones for the preceding tranche and is structured as a reimbursement for company expenses. Individual tranches will not be paid if the preceding milestone of a tranche is not met. The initial tranche amounted to up to EUR 25.8 million. With availability of the data from the COVID Phase III study, the agency handling the grant on behalf of the German government determined that we reached the first milestone in the funded project. With achievement of the first milestone, the second tranche of the awarded grant has been unlocked for future withdrawal. To date, we have received €8.3 million in grant funds; further funding in the amount of €1.6 million to which we are eligible has already been applied for and in addition refundable invoices in the amount of €6.7 million will be submitted in the near future.
Pyoderma Gangraenosum (PG)
We are also developing vilobelimab for the treatment of pyoderma gangraenosum (PG), a rare neutrophilic dermatosis associated with chronic cutaneous ulcerations. PG usually has a devastating effect on a patient’s life due to severe pain and induction of significant movement impairment depending on the lesions’ locations. In February 2019, we initiated an open label, multicenter Phase IIa exploratory study, enrolling 18 patients with moderate to severe PG in Canada, the United States and Poland. The objective of this study was to evaluate the safety and efficacy of vilobelimab in this patient population in three different doses.
On April 15, 2021, the study reached its enrollment target of 19 patients. On October 27, 2021, we announced preliminary results from the study. In the third dosing cohort at 2400mg biweekly, six of the seven patients achieved clinical remission with a physician global assessment (PGA) score of ≤ 1, which reflects a closure of the target ulcer. All patients in cohort 3 had elevated C5a levels at baseline that were continuously suppressed after initiation of vilobelimab treatment. Amongst all cohorts, two patients had related severe adverse events (SAEs) that were reported: one patient experienced an erysipelas leading to hospitalization (judged as non-related by the sponsor), the other developed a rash due to a delayed hypersensitivity reaction and withdrew from the study (which had been previously disclosed from cohort 2). No dose-related adverse events (AEs) were found. Overall, the observed AE profile was in line with the underlying diseases. Final data from the study were presented at the 2022 American Academy of Dermatology Association (AAD) Annual Meeting on March 26, 2022. With these results, during the second quarter of 2022, we had a productive End-of-Phase II meeting with the (Food and Drug Administration (FDA) in the United States related to our plans for a Phase III development program in PG. The FDA indicated its support for a randomized, controlled Phase III clinical trial and offered to review the study protocol, recognizing PG as a serious and rare condition. Based on the FDA’s feedback and recommendations, we are now finalizing the design for a Phase III trial and continue to be in dialogue with the FDA related to this. During the second quarter, vilobelimab was granted orphan drug designation for the treatment of PG by both the FDA in the United States and the European Medicines Agency (EMA) in Europe. Moreover, on July 6, 2022 we announced that the FDA also granted a Fast Track designation to the development of vilobelimab for the treatment of PG.
II-2 |
Cutaneous Squamous Cell Carcinoma (cSCC)
We are also developing vilobelimab for the treatment of programmed cell death protein 1 (PD-1) / programmed death ligand 1 (PD-L1) inhibitor resistant/refractory locally advanced or metastatic cutaneous squamous cell carcinoma (cSCC). cSCC is the second most common skin cancer. The incidence of cSCC increases with increasing sun exposure and age and individuals with fair skin and hair are more often affected. The potential for local recurrence or metastasis of cSCC varies with the pathologic variant and localization of the primary lesion, and the risk for metastasis in cSCC is approximately 2-5%. Advanced cSCC 10-year survival rates are less than 20% with regional lymph node involvement and less than 10% with distant metastases.
In June 2021, we announced the dosing of the first patient in the study. After five weeks of treatment with the first three patients in the monotherapy arm, a safety assessment was completed, and enrollment in the combination arm was opened.
On February 16, 2022, we reported that in the combination Arm B of our ongoing clinical Phase II study of vilobelimab in cSCC, three patients have been treated for at least 36 days in the first dosing cohort of the study, receiving intravenous infusions of 400 mg of vilobelimab on days 1, 4, 8, and 15 and from day 22 onwards, 800 mg every two weeks. Patients are also receiving 400 mg of pembrolizumab starting on day 8 of the first cycle and every six weeks thereafter. The data from the first 36 days of treatment have been reviewed by an independent Steering Committee and no safety concerns were raised. The Steering Committee recommended to continue the study as planned and to open enrollment for the second dosing cohort with 1200 mg vilobelimab every two weeks after administration of 600 mg vilobelimab on days 1, 4, 8 and 15. Meanwhile, nine patients have been treated in Arm B. The interim analysis in Arm B which is required to move to the second stage of the Phase II trial, is expected after ten patients have been treated and are evaluable for response assessment at the recommended Phase II dose level, which will be selected based on data from the safety run-in phase of the study. These data are expected to be available in the second half of 2023.
In parallel, enrollment continues in the monotherapy Arm A. Nine patients are now enrolled in this arm. In this arm, patients are receiving a dose of 800 mg vilobelimab on days 1, 4, 8, and 15 of the first cycle, followed by a dose of 1600 mg vilobelimab every two weeks starting on day 22. The interim analysis in Arm A required to proceed to the second stage is expected to be available after ten patients are evaluable for response assessment. These data are expected to be available in the second half of 2022.
Hidradenitis Suppurativa (HS)
We were developing vilobelimab for the treatment of hidradenitis suppurativa (HS), a chronic debilitating systemic inflammatory skin disease. In June 2019, we announced that our Phase IIb clinical trial of vilobelimab in HS (SHINE) did not meet its primary endpoint. We subsequently announced the results of additional analysis and first interim results of the open label extension trial. In light of all available data from the post-hoc analysis of the completed SHINE study and our interaction with the regulatory authorities, we initiated a Phase III study with vilobelimab in HS in January 2022, which we subsequently paused in February 2022, after having received conflicting advice from the FDA regarding the proposed clinical trial protocol and the primary endpoint of the study described therein. In March 2022, the FDA corrected its advice to us. However, after performing a strategic review of our development programs and considering the current financing environment, we decided to halt the development of vilobelimab in HS for the time being.
ANCA-associated Vasculitis (AAV)
We were developing vilobelimab for the treatment of anti-neutrophil cytoplasmic antibody (ANCA) associated vasculitis (AAV), a rare, life-threatening autoimmune disease associated with powerful inflammatory flares that impair kidney function and lead to fatal organ dysfunction.
In May 2021, we reported top-line data for our Phase II safety study in patients with moderate to severe AAV (IXPLORE), indicating that vilobelimab, when dosed in addition to standard of care, proved to be safe and well tolerated.
II-3 |
Furthermore, in November 2021, we announced top-line results from our randomized, double-blind, placebo-controlled Phase II clinical trial of vilobelimab in patients with AAV (IXCHANGE). In this study with 57 patients, we showed a comparable clinical response of vilobelimab to standard of care, while significantly reducing the need for glucocorticoid (GC) treatment in this life-threatening indication.
Despite these encouraging results, taking into account the resources required and long duration of necessary Phase III studies to gain regulatory approval, in April 2022 we decided to halt the clinical development of vilobelimab in AAV for the time being.
INF904
We are developing INF904, an oral, small molecule drug candidate that targets the C5aR receptor. C5aR, a G-protein-coupled-receptor expressed primarily by granulocytes, mediates the pathophysiological effects of C5a. We plan on targeting complement-mediated, chronic auto-immune and inflammatory conditions where an oral small molecule is the preferred route of administration for patients.
On January 10, 2022, we reported that we have been granted a composition of matter patent for INF904 and associated compounds by the U.S. Patent and Trademark Office and have completed investigational new drug (IND)-enabling (preclinical) studies that demonstrated no obvious toxicological findings even in the highest dose groups in required GLP toxicity analyses. In these preclinical studies, oral INF904 showed higher plasma exposure in animals, including non-human primates, and improved inhibitory activity in a hamster neutropenia model compared to the marketed C5aR inhibitor. Anti-inflammatory therapeutic effects in several preclinical disease models were also demonstrated by INF904. Further, in contrast to the marketed C5aR inhibitor, in vitro experiments showed INF904 has substantially less inhibition of the cytochrome P450 3A4/5 (CYP3A4/5) enzymes, which play an important role in the metabolism of a variety of drugs, including glucocorticoids. We expect to initiate a Phase I program in the second half of 2022 and plan to study INF904 in complement-mediated, chronic autoimmune and inflammatory diseases where oral administration is the preferred choice for patients.
IFX002
To expand the breadth of our anti-C5a technology, we are also developing IFX002 for the treatment of chronic inflammatory indications. IFX002 shares the same mechanism of action as vilobelimab, blocking C5a with high specificity, but is designed with a dosing regimen that may be more suitable for chronic therapy. IFX002 is in pre-clinical development.
Management changes
On June 29, 2022, we announced the departure of Mr. Jordan Zwick, our Chief Strategy Officer. Mr. Zwick left us to pursue other professional opportunities. However, Mr. Zwick agreed to continue to serve as an advisor to us.
In July, Dr. Korinna Pilz, our Chief Clinical Development Officer informed us about her intention to leave the Company for personal reasons. We subsequently signed a separation agreement with Dr. Pilz, in which we mutually agreed that she will continue to provide her services until October 28, 2022. Beyond this date Dr. Pilz will continue to advise us on specific matters on an as needed basis.
Financial Highlights
As of June 30, 2022, we had cash and cash equivalents of €15.4 million and marketable securities of €76.4 million. In April 2022, we conducted a strategic review of our programs and decided to halt development of vilobelimab for HS and AAV until if and when we have sufficient resources to run Phase III trials for the respective programs. As a result of this prioritization, we believe that our current funds will be sufficient to fund our planned operations into the second half of 2024.
We anticipate that the level of our expenses will be affected if and as we:
| · | engage with regulators with respect to potential approval paths for vilobelimab in 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; |
|
|
|
| · | initiate and continue research programs and development activities, including development of IFX002 and INF904; and |
II-4 |
| · | 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. |
Our expenses in any quarter may not be indicative of our expenses in future periods, and in particular we expect that our expenses, and therefore our net losses, could vary depending on the going forward strategy relating to the regulatory approval of vilobelimab in severe COVID-19 patients, PG, cSCC and additional indications as well as any potential addition of a technology platform or assets.
We do not expect to generate revenue from product sales unless and until we successfully complete development and obtain regulatory approval for a product candidate, which we expect to be subject to significant uncertainty. If we obtain regulatory approval for any product candidate, we expect to incur significant commercialization expenses related to product sales, marketing, manufacturing and distribution. Accordingly, we may seek to further fund our operations through public or private equity or debt financings or other sources, including strategic collaborations. We may, however, be unable to raise additional funds or enter into such other arrangements when needed on favorable terms or at all. Our failure to raise capital or enter into such other arrangements as and when needed, would have a negative impact on our financial condition and our ability to develop vilobelimab or any additional product candidates.
Research and Development Expenses
Research and development expenses consisted principally of:
| · | 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. |
Our research and development expenses primarily relate to the following key programs:
| · | 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, explore the regulatory approval submission for vilobelimab in severe COVID-19, complete outstanding activities in our Phase II clinical program of vilobelimab in patients with AAV and our Phase II clinical trial program 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. |
In 2021, we incurred €35.7 million in research and development expenses. For the six months ended June 30, 2022 and 2021, we incurred research and development expenses of €21.7 million and €16.2 million, respectively. The principal driver of the increase in our research and development expenses was the completion of the Phase III clinical trial of vilobelimab in severe COVID-19. Our research and development expenses may vary substantially from period to period based on the timing of our research and development activities, including due to timing of clinical trial initiation and enrollment.
II-5 |
We expense research and development costs as incurred. We recognize costs for certain development activities, such as preclinical studies and clinical trials, based on an evaluation of the progress to completion of specific tasks. We use information provided to us by our vendors such as patient enrollment or clinical site activations for services received and efforts expended. Research and development activities are central to our business model.
The successful development of our product candidates is highly uncertain. At this time, we cannot reasonably estimate the nature, timing and estimated costs of the efforts that will be necessary to complete the development of, or the period, if any, in which material net cash inflows may commence from, any of our product candidates. For a discussion of our other key financial statement line items, please see “ITEM 5. Operating and Financial Review and Prospects—Operating results” in the Annual Report.
General and Administrative Expenses
We expect that our general and administrative expenses will increase in the future as our business expands and we incur additional costs associated with operating as a public company. These public company-related costs relate primarily to additional personnel, additional professional and legal fees, audit fees, directors’ and officers’ liability insurance premiums and costs associated with investor relations.
In 2021, we incurred €12.0 million in general and administrative expenses. For the six months ended June 30, 2022 and 2021, we incurred general and administrative expenses of €8.7 million and €5.7 million, respectively. The principal driver of the increase in our general and administrative expenses is attributable to higher personnel expenses from equity-settled share-based compensation recognized in personnel expenses of €2.7 million in the six months ended June 30, 2022 (versus €1.7 million in the same period of 2021). Especially, the decision to reprice outstanding stock options made on April 13, 2022 contributed to the increase in these expenses. Additionally, legal, consulting and other expenses increased to €4.2 million for the six months ended June 30, 2022, from €2.2 million for the six months ended June 30, 2021.
Results of Operations
The information below was derived from our condensed consolidated financial statements included elsewhere herein. The discussion below should be read along with these condensed consolidated financial statements and our Annual Report on Form 20-F for the year ended December 31, 2021 filed with the SEC.
Comparison of the Three Months Ended June 30, 2022 and 2021
|
| Three Months Ended June 30, |
| |||||||||
(in €) |
| 2022 |
|
| 2021 |
|
| Change |
| |||
Operating Expenses |
|
|
|
|
|
|
|
|
| |||
Research and development expenses |
|
| (11,180,958 | ) |
|
| (11,299,270 | ) |
|
| (118,312 | ) |
General and administrative expenses |
|
| (4,346,965 | ) |
|
| (2,697,839 | ) |
|
| 1,649,127 |
|
Total Operating Expenses |
|
| (15,527,923 | ) |
|
| (13,997,109 | ) |
|
| 1,530,815 |
|
Other income |
|
| 14,441,541 |
|
|
| 15,216 |
|
|
| 14,426,325 |
|
Other expenses |
|
| (279 | ) |
|
| (279 | ) |
|
| — |
|
Operating Result |
|
| (1,086,661 | ) |
|
| (13,982,172 | ) |
|
| (12,895,510 | ) |
Finance income |
|
| 82,401 |
|
|
| 35,622 |
|
|
| (46,779 | ) |
Finance expenses |
|
| (7,945 | ) |
|
| (3,050 | ) |
|
| 4,895 |
|
Foreign exchange result |
|
| 1,563,580 |
|
|
| (826,303 | ) |
|
| (2,389,883 | ) |
Other financial result |
|
| (86,000 | ) |
|
| (5,000 | ) |
|
| 81,000 |
|
Income (Loss) for the Period |
|
| 465,376 |
|
|
| (14,780,903 | ) |
|
| (15,246,278 | ) |
Exchange differences on translation of foreign currency |
|
| 4,408,940 |
|
|
| (1,427,302 | ) |
|
| 5,836,242 |
|
Total Comprehensive Income (Loss) |
|
| 4,874,316 |
|
|
| (16,208,205 | ) |
|
| (21,082,521 | ) |
II-6 |
Research and Development Expenses
|
| Three Months Ended June 30, |
| |||||||||
(in €) |
| 2022 |
|
| 2021 |
|
| Change |
| |||
Third-party expenses |
|
| 8,694,344 |
|
|
| 9,517,378 |
|
|
| (823,034 | ) |
Personnel expenses |
|
| 2,117,975 |
|
|
| 1,387,293 |
|
|
| 730,682 |
|
Legal and consulting fees |
|
| 277,274 |
|
|
| 290,697 |
|
|
| (13,423 | ) |
Other expenses |
|
| 91,364 |
|
|
| 103,902 |
|
|
| (12,538 | ) |
Total Research and development expenses |
|
| 11,180,958 |
|
|
| 11,299,270 |
|
|
| (118,312 | ) |
We use our employee and infrastructure resources across multiple research and development programs directed toward developing vilobelimab and our pre-clinical programs. We manage certain activities such as contract research and manufacturing of vilobelimab and our discovery programs through our third-party vendors.
Research and development expenses incurred for the three months ended June 30, 2022 remained relatively flat compared to the corresponding period in 2021.
General and Administrative Expenses
|
| Three Months Ended June 30, |
| |||||||||
(in €) |
| 2022 |
|
| 2021 |
|
| Change |
| |||
Personnel expenses |
|
| 2,052,710 |
|
|
| 1,541,027 |
|
|
| 511,683 |
|
Legal, consulting and audit fees |
|
| 1,141,416 |
|
|
| 239,301 |
|
|
| 902,115 |
|
Other expenses |
|
| 1,152,838 |
|
|
| 917,511 |
|
|
| 235,327 |
|
Total General and administrative expense |
|
| 4,346,965 |
|
|
| 2,697,839 |
|
|
| 1,649,126 |
|
General and administrative expenses increased by €1.6 million to €4.3 million for the three months ended June 30, 2022, from €2.7 million for the three months ended June 30, 2021. This increase is attributable to higher expenses from equity-settled share-based compensation recognized in personnel expenses (€0.6 million). Additionally, legal, consulting and other expenses increased to €2.3 million for the three months ended June 30, 2022, from €1.2 million for the three months ended June 30, 2021, mainly due to higher consulting and audit costs due to implementation and testing of the ICFR environment.
Other income
|
| Three Months Ended June 30, |
| |||||||||
(in €) |
| 2022 |
|
| 2021 |
|
| Change |
| |||
Other income from government grants |
|
| 14,415,368 |
|
|
| — |
|
|
| 14,415,368 |
|
Further other incomes |
|
| 26,173 |
|
|
| 15,216 |
|
|
| 10,957 |
|
Total Other income |
|
| 14,441,541 |
|
|
| 15,216 |
|
|
| 14,426,326 |
|
Other income increased by €14.4 million. The increase was due to an increase in amounts recognized from grant payments received from the German government.
A portion of this increase is attributable to the recognition of €7.1 million, which was initially deferred in Q4 2021 as a liability as, prior to Q2 2022, there was not reasonable assurance as to whether all grant conditions were fulfilled. With receipt in Q2 2022 of a written confirmation from the agency administering the grant on behalf of the German federal government, reasonable assurance of grant conditions being fulfilled was provided. Further, this confirmation amended the grant, including amending the amounts eligible for each of the various cost categories covered by the grant, with no change to the overall grant amount, and amended the timeline during which eligible costs related to the manufacturing process development activities can be incurred. In addition, reimbursable costs incurred during Q1 and Q2 2022, in the amount of €7.3 million, were also recognized as other income in Q2 2022.
II-7 |
Net financial result
Financial Result |
| Three Months Ended June 30, |
| |||||||||
(in €) |
| 2022 |
|
| 2021 |
|
| Change |
| |||
Financial income |
|
|
|
|
|
|
|
|
| |||
Interest income |
|
| 82,401 |
|
|
| 35,622 |
|
|
| 46,779 |
|
Financial expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expenses |
|
| (2,243 | ) |
|
| (305 | ) |
|
| (1,938 | ) |
Interest on lease liabilities |
|
| (5,702 | ) |
|
| (2,745 | ) |
|
| (2,957 | ) |
Total |
|
| 74,456 |
|
|
| 32,572 |
|
|
| 41,884 |
|
Foreign exchange result |
| Three Months Ended June 30, |
| |||||||||
(in €) |
| 2022 |
|
| 2021 |
|
| Change |
| |||
Foreign exchange result |
|
|
|
|
|
|
|
|
| |||
Foreign exchange income |
|
| 2,947,221 |
|
|
| 1,635,201 |
|
|
| 1,312,020 |
|
Foreign exchange expense |
|
| (1,383,641 | ) |
|
| (2,461,504 | ) |
|
| 1,077,863 |
|
Total |
|
| 1,563,580 |
|
|
| (826,303 | ) |
|
| 2,389,883 |
|
Other financial result |
| Three Months Ended June 30, |
| |||||||||
(in €) |
| 2022 |
|
| 2021 |
|
| Change |
| |||
Other financial result |
|
| (86,000 | ) |
|
| (5,000 | ) |
|
| (81,000 | ) |
Net financial result increased by €2.4 million to a gain of €1.6 million for the three months ended June 30, 2022 from a loss of €0.8 million for the three months ended June 30, 2021. This increase is mainly attributable to lower foreign exchange losses, which decreased by €1.1 million and by higher foreign exchange gains of €1.3 million. Interest on marketable securities also increased slightly by €47 thousand. Other financial result consists of an adjustment for expected credit losses on marketable securities.
Comparison of the Six Months Ended June 30, 2022 and 2021
|
| Six Months Ended June 30, |
| |||||||||
(in €) |
| 2022 |
|
| 2021 |
|
| Change |
| |||
Operating Expenses |
|
|
|
|
|
|
|
|
| |||
Research and development expenses |
|
| (21,652,881 | ) |
|
| (16,206,155 | ) |
|
| (5,446,726 | ) |
General and administrative expenses |
|
| (8,734,408 | ) |
|
| (5,720,177 | ) |
|
| (3,014,232 | ) |
Total Operating Expenses |
|
| (30,387,289 | ) |
|
| (21,926,332 | ) |
|
| (8,460,957 | ) |
Other income |
|
| 14,443,135 |
|
|
| 20,678 |
|
|
| 14,422,457 |
|
Other expense |
|
| (844 | ) |
|
| (844 | ) |
|
| — |
|
Operating Result |
|
| (15,944,999 | ) |
|
| (21,906,498 | ) |
|
| 5,961,499 |
|
Finance income |
|
| 110,362 |
|
|
| 58,584 |
|
|
| 51,778 |
|
Finance expenses |
|
| (32,531 | ) |
|
| (6,734 | ) |
|
| (25,797 | ) |
Foreign exchange result |
|
| 2,291,513 |
|
|
| 905,367 |
|
|
| 1,386,146 |
|
Other financial result |
|
| 39,000 |
|
|
| 43,000 |
|
|
| (4,000 | ) |
Loss for the Period |
|
| (13,536,654 | ) |
|
| (20,906,280 | ) |
|
| 7,369,626 |
|
Exchange differences on translation of foreign currency |
|
| 5,718,815 |
|
|
| 2,077,397 |
|
|
| 3,641,418 |
|
Total Comprehensive Loss |
|
| (7,817,839 | ) |
|
| (18,828,883 | ) |
|
| 11,011,044 |
|
II-8 |
Research and Development Expenses
|
| Six Months Ended June 30, |
| |||||||||
(in €) |
| 2022 |
|
| 2021 |
|
| Change |
| |||
Third-party expenses |
|
| 16,782,955 |
|
|
| 12,506,440 |
|
|
| 4,276,515 |
|
Personnel expenses |
|
| 4,225,598 |
|
|
| 2,977,971 |
|
|
| 1,247,627 |
|
Legal and consulting fees |
|
| 471,361 |
|
|
| 510,817 |
|
|
| (39,456 | ) |
Other expenses |
|
| 172,967 |
|
|
| 210,927 |
|
|
| (37,960 | ) |
Total research and development expenses |
|
| 21,652,881 |
|
|
| 16,206,155 |
|
|
| 5,446,726 |
|
We use our employee and infrastructure resources across multiple research and development programs directed toward developing vilobelimab and our pre-clinical programs. We manage certain activities such as contract research and manufacturing of vilobelimab and our discovery programs through our third-party vendors.
Research and development expenses incurred for the six months ended June 30, 2022 increased compared to the corresponding period in 2021 by €5.4 million. This increase was primarily due to higher expenses for the Phase III part of our COVID-19 trial as well as costs for manufacturing development activities and was driven by an overall increase in third-party expenses of €4.3 million. The €1.2 million increase in personnel expenses was mainly related to equity-settled share-based compensation.
General and Administrative Expenses
|
| Six Months Ended June 30, |
| |||||||||
(in €) |
| 2022 |
|
| 2021 |
|
| Change |
| |||
Personnel expenses |
|
| 4,529,727 |
|
|
| 3,541,486 |
|
|
| 988,241 |
|
Legal, consulting and audit fees |
|
| 1,911,707 |
|
|
| 580,449 |
|
|
| 1,331,258 |
|
Other expenses |
|
| 2,292,974 |
|
|
| 1,598,242 |
|
|
| 694,732 |
|
Total General and administrative expense |
|
| 8,734,408 |
|
|
| 5,720,177 |
|
|
| 3,014,231 |
|
General and administrative expenses increased by €3.0 million to €8.7 million for the six months ended June 30, 2022, from €5.7 million for the six months ended June 30, 2021. This increase is primarily attributable to increasing expenses associated with equity-settled share-based compensation recognized in personnel expenses. Furthermore, legal, consulting and other expenses increased by €2.0 million to €4.2 million for the six months ended June 30, 2022, from €2.2 million for the six months ended June 30, 2021, mainly due to higher consulting and audit costs in conjunction to enhancing the ICFR environment.
Other income
|
| Six Months Ended June 30, |
| |||||||||
(in €) |
| 2022 |
|
| 2021 |
|
| Change |
| |||
Other income from government grants |
|
| 14,415,368 |
|
|
| — |
|
|
| 14,415,368 |
|
Further other incomes |
|
| 27,767 |
|
|
| 20,678 |
|
|
| 7,089 |
|
Total Other income |
|
| 14,443,135 |
|
|
| 20,678 |
|
|
| 14,422,457 |
|
Other income for the six months ended June 30, 2022, amounted to €14.4 million. The increase was due to an increase in amounts recognized as other income from government grants.
A part of this increase was attributable to the reversal of a liability of €7.1 million, which was initially recorded in Q4 2021 as a liability since until Q2 2022 it was not clear whether all grant conditions were fulfilled. With receipt of the written confirmation by the agency handling the grant on behalf of the German government of having reached the first milestone in the funded project (data from the COVID Phase III study available) and having agreed on substantial changes in the grant project, including certain changes to amounts and timelines related to the manufacturing process development activities, these liabilities were now recognized as other income. In addition, the refundable portion of costs incurred in this project during Q1 and Q2 in the amount of €7.3 million were also recognized as other income.
II-9 |
Net financial result
Financial Result |
| Six Months Ended June 30, |
| |||||||||
(in €) |
| 2022 |
|
| 2021 |
|
| Change |
| |||
Financial income |
|
|
|
|
|
|
|
|
| |||
Interest income |
|
| 110,362 |
|
|
| 58,584 |
|
|
| 51,778 |
|
Financial expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expenses |
|
| (22,102 | ) |
|
| (2,885 | ) |
|
| (19,217 | ) |
Interest on lease liabilities |
|
| (10,429 | ) |
|
| (3,849 | ) |
|
| (6,580 | ) |
Total |
|
| 77,831 |
|
|
| 51,850 |
|
|
| 25,981 |
|
Foreign exchange result |
| Six Months Ended June 30, |
| |||||||||
(in €) |
| 2022 |
|
| 2021 |
|
| Change |
| |||
Foreign exchange result |
|
|
|
|
|
|
|
|
| |||
Foreign exchange income |
|
| 4,057,629 |
|
|
| 4,092,239 |
|
|
| (34,610 | ) |
Foreign exchange expense |
|
| (1,766,116 | ) |
|
| (3,186,872 | ) |
|
| 1,420,756 |
|
Total |
|
| 2,291,513 |
|
|
| 905,367 |
|
|
| 1,386,146 |
|
Other financial result |
| Six Months Ended June 30, |
| |||||||||
(in €) |
| 2022 |
|
| 2021 |
|
| Change |
| |||
Other financial result |
|
| 39,000 |
|
|
| 43,000 |
|
|
| (4,000 | ) |
Net financial result increased by €1.4 million to €2.4 million for the six months ended June 30, 2022, from €1.0 million for the six months ended June 30, 2021. This increase was mainly attributable to lower foreign exchange losses which decreased by €1.4 million.
Liquidity and Capital Resources
Since inception, we have incurred significant operating losses. For the six months ended June 30, 2022, we incurred a net loss of €13.5 million. To date, we have financed our operations primarily through the sale of our securities. As of June 30, 2022, we had cash and cash equivalents of €15.4 million, in addition to marketable securities of €76.4 million. Our cash and cash equivalents primarily consist of bank deposit accounts and fixed U.S. Dollar term deposits. Our quoted debt securities have high credit ratings.
II-10 |
Cash Flows
The table below summarizes our consolidated statement of cash flows for the six months ended June 30, 2022 and 2021:
|
| Six Months Ended June 30, |
| |||||
(in €) |
| 2022 |
|
| 2021 |
| ||
Net cash used in operating activities |
|
| (25,359,081 | ) |
|
| (18,254,553 | ) |
Net cash from investing activities |
|
| 12,554,101 |
|
|
| 1,942,546 |
|
Net cash from/ (used in) financing activities |
|
| (182,014 | ) |
|
| 61,703,934 |
|
Cash and cash equivalents at the beginning of the period |
|
| 26,249,995 |
|
|
| 25,968,681 |
|
Exchange gains on cash and cash equivalents |
|
| 2,153,152 |
|
|
| 999,820 |
|
Cash and cash equivalents at the end of the period |
|
| 15,416,152 |
|
|
| 72,360,428 |
|
Net Cash used in Operating Activities
The use of cash in all periods resulted primarily from our net losses, adjusted for non-cash charges and changes in components of working capital.
Net cash used in operating activities increased by €7.1 million to €25.4 million for the six months ended June 30, 2022 compared to the six months ended June 30, 2021, during which net cash used in operating activities was €18.3 million.
Net Cash from Investing Activities
Net cash from investing activities increased by €10.6 million for the six months ended June 30, 2022 mainly due to an increase of €30.1 million in repayments from matured marketable securities and offset by an increase of €19.5 million in purchases of marketable securities for the six months ended June 30, 2022 compared to the six months ended June 30, 2021.
Net Cash from Financing Activities
Net cash from financing activities decreased by €61.9 million in the six months ended June 30, 2022 compared to the six months ended June 30, 2021, primarily due to no financings having been undertaken in the first six months of 2022, whereas funds were raised in a follow-on offering in March 2021 and through our at-the-market program during the first six months of 2021.
Funding Requirements
We expect our expenses associated with vilobelimab will increase in 2022 compared to 2021, as we expect to complete the outstanding clinical trial activities in COVID-19, explore the regulatory approval submission for vilobelimab in severe COVID-19, complete outstanding activities in our Phase II clinical program of vilobelimab in patients with AAV and our Phase II clinical trial program 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. Furthermore, we are developing an oral, small molecule drug candidate that targets the C5aR receptor denominated as INF904. All IND-enabling studies have been completed and we plan to initiate the Phase I program in the second half of 2022. We are also continuing preclinical development of IFX002. We also continue with our other research and development efforts towards other product candidates and early discovery activities. In addition, if we obtain marketing approval for any of our product candidates, we expect to incur significant commercialization expenses related to establishing sales, marketing, distribution and other commercial infrastructure to commercialize such products. Furthermore, we expect to incur additional costs associated with operating as a public company. Accordingly, we will need to obtain substantial additional funding in connection with our continuing operations. If we are unable to raise capital when needed or on attractive terms, we would be forced to delay, reduce, or eliminate our research and development programs or future commercialization efforts. We believe that our existing cash and cash equivalents and financial assets will enable us to fund our operating expenses and capital expenditure requirements under our current business plan for at least the next 24 months.
II-11 |
Until such time, if ever, that we can generate substantial product revenues, we expect to finance our cash needs through a combination of equity offerings, debt financings, research and development grant income, royalty-based financings, future collaborations, strategic alliances, and licensing arrangements. To the extent that we raise additional capital through the sale of equity or convertible debt securities, the interest of our current shareholders will be diluted, and the terms of these securities may include voting or other rights that adversely affect your rights as a common shareholder. Debt financing, if available, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures, or declaring dividends. If we raise funds through additional collaborations, strategic alliances or licensing arrangements with third parties, we may have to relinquish rights to our technologies, future revenue streams, research programs or product candidates or to grant licenses on terms that may not be favorable to us.
For more information as to the risks associated with our future funding needs, see “ITEM 3. KEY INFORMATION—C. Risk factors” in our Annual Report on Form 20-F for the year ended December 31, 2021 filed with the SEC.
Off-Balance Sheet Arrangements
As of June 30, 2022, and during the periods presented, we did not have any off-balance sheet arrangements other as described under “Management’s discussion and analysis of financial condition and results of operations—Off-balance sheet arrangements” in our Annual Report on Form 20-F for the year ended December 31, 2021 filed with the SEC.
Contractual Obligations and Commitments
As of the date of this discussion and analysis, we do not have any, and during the periods presented we did not have any, contractual obligations and commitments other than as described under “Management’s discussion and analysis of financial condition and results of operations- Contractual obligations and commitments” in our Annual Report on Form 20-F for the year ended December 31, 2021 filed with the SEC.
Quantitative and Qualitative Disclosures about Market Risk
During the six months ended June 30, 2022, there were no significant changes to our quantitative and qualitative disclosures about market risk from those reported in “Management’s discussion and analysis of financial condition and results of operations–Quantitative and qualitative disclosures about market risk” in our Annual Report 2021 on Form 20-F for the year ended December 31, 2021 filed with the SEC.
Critical Judgments and Accounting Estimates
There have been no material changes to the significant accounting policies and estimates described in “Management’s discussion and analysis of financial condition and results of operations—Critical judgments and accounting estimates” in our Annual Report 2021 on Form 20-F for the year ended December 31, 2021 filed with the SEC.
II-12 |
JOBS Act Exemptions
On April 5, 2012, the JOBS Act was signed into law. The JOBS Act contains provisions that, among other things, reduce certain reporting requirements for an “emerging growth company.” As an emerging growth company, we are not required to provide an auditor attestation report on our system of internal controls over financial reporting. As of December 31, 2022, we will no longer qualify as an emerging growth company. Accordingly, in our Annual Report on Form 20-F for the year ended December 31, 2022, we will no longer be subject to the reduced reporting requirements applicable to emerging growth companies and we will be required to adhere to, among other things, the auditor attestation requirement in the assessment of internal controls over financial reporting and compliance with the requirement that the Public Company Accounting Oversight Board has adopted regarding a supplement to the auditor’s report providing additional information about the audit and the financial statements. As a result of losing our emerging growth company status at the end of 2022, we have begun to incur additional costs that may continue as we refine our financial reporting processes and expand our operations.
Cautionary Statement Regarding Forward Looking Statements
This discussion contains forward-looking statements that involve substantial risks and uncertainties. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “estimate,” “believe,” “predict,” “potential” or “continue” or the negative of these terms or other similar expressions intended to identify statements about the future. These statements speak only as of the date of this discussion and involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. These forward-looking statements include, without limitation, statements about the following:
| · | our operation as a development stage company with limited operating history, our history of operating losses and our accumulated deficit of €227.5 million as of June 30, 2022; |
|
|
|
| · | the timing, progress and results of clinical trials of vilobelimab and any other product candidates, including for the development of vilobelimab to treat PG and critical 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; |
|
|
|
| · | the submission of an application to the FDA in the third quarter of 2022 for emergency use authorization for vilobelimab to treat critical COVID-19; |
|
|
|
| · | 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 technology 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; |
II-13 |
| · | 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 the year ended December 31, 2021 filed with the SEC 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. |
II-14 |
EXHIBIT 99.3
InflaRx Reports Second Quarter 2022
Financial & Operating Results
· | Fast Track and Orphan Drug designation for vilobelimab in pyoderma gangrenosum (PG) granted by the FDA |
|
|
· | Plans to submit EUA with the FDA for vilobelimab in critically ill COVID-19 patients announced |
|
|
· | Grant income of €14.4 million realized during the second quarter |
|
|
· | Cash, cash equivalents and marketable securities of €91.8 million, expected to finance operations until year-end 2024 |
Jena, Germany, August 5, 2022 – InflaRx N.V. (Nasdaq: IFRX), a clinical-stage biopharma-ceutical company developing anti-inflammatory therapeutics by targeting the complement system, announced today financial and operating results for the three and six months ended June 30, 2022.
“We have made strong progress in recent months in advancing our strategy for vilobelimab,” said Prof. Niels C. Riedemann, Chief Executive Officer and Founder of InflaRx. “Following positive Phase IIa data and productive discussions with the FDA, we are finalizing the design of our Phase III trial in PG. Our discussions with the FDA related to vilobelimab for the treatment of critically ill, invasively mechanically ventilated COVID-19 patients following the results from our Phase III trial were encouraging. Based on this, we are preparing to apply for emergency use authorization in the U.S. and expect to complete the submission by the end of the third quarter this year. We are also looking forward to further discussing in greater detail our vilobelimab results in critically ill COVID-19 patients with the regulatory agencies in Europe to understand next steps towards a potential submission for marketing authorization. It is a busy time at InflaRx, and we are excited to be moving our programs forward with the goal of ultimately helping patients in need of more effective treatments."
Dr. Thomas Taapken, Chief Financial Officer of InflaRx, said: “We are well financed to follow through with the next steps of our development programs after sharpening our strategic focus, which we announced in May. We are also grateful for the grant of up to €43.7 million from the German federal government for the clinical development of vilobelimab in COVID-19 and the development of the manufacturing process of vilobelimab. Through this strong backing and our focused development strategy, we believe that we have been able to significantly extend our cash runway to YE 2024 in this challenging market environment.”
Recent Corporate and R&D Highlights
Development of Vilobelimab in Pyoderma Gangrenosum (PG):
InflaRx recently reported that vilobelimab was granted orphan drug designation for the treatment of PG by both the U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMA). In addition, the Company had a productive End-of-Phase II meeting with the FDA related to its plans for a Phase III development program in PG. The FDA indicated its support for a randomized, controlled Phase III development program during the meeting and offered to review the study protocol, recognizing PG as a serious and rare condition. Based on the FDA’s feedback and recommendations, InflaRx is now finalizing the design for a Phase III trial and continues to be in dialogue with the FDA related to this. Moreover, the FDA has granted Fast Track designation for the development of vilobelimab for the treatment of ulcerative PG. The Company had submitted a request for Fast Track designation to the FDA on the basis of previously reported positive outcome data from its Phase IIa open-label dose-escalation study in PG.
Development of Vilobelimab in Critically Ill COVID-19 Patients:
InflaRx recently announced its plans to submit a request for emergency use authorization (EUA) following encouraging interactions with the FDA at a recently held Type B meeting. As previously announced, the Company had requested the meeting to discuss a potential EUA submission and the development of its first-in-class anti-C5a monoclonal antibody vilobelimab in critically ill, invasively mechanically ventilated COVID-19 patients. In the meeting with the FDA, the Company discussed in detail the completed Phase III part of the PANAMO study and obtained guidance from the agency on deliverables related to its planned submission for EUA. InflaRx committed to submitting the request for an EUA by the end of the third quarter 2022 and is dedicated to achieving that ambitious goal. The Company had previously announced encouraging topline results from the PANAMO Phase III study, an international, double-blind, placebo-controlled, randomized clinical trial investigating vilobelimab in invasively mechanically ventilated COVID-19 patients. The primary efficacy endpoint was 28-day all-cause mortality. In this trial, vilobelimab treatment resulted in a 23.9% relative reduction in 28-day all-cause mortality compared to the placebo arm in the global data set (n=368 patients). A pre-specified analysis of patients from Western European countries (n=209) showed a 43% relative reduction in 28-day all-cause mortality in the vilobelimab treatment arm compared to placebo.
2 |
Development of Vilobelimab in Cutaneous Squamous Cell Carcinoma (cSCC):
In 2021, InflaRx started treating patients in an open-label, multicenter Phase II study evaluating vilobelimab alone and in combination with pembrolizumab in patients with programmed cell death protein 1 (PD-1) or programmed cell death ligand 1 (PD-L1) inhibitor resistant/refractory locally advanced or metastatic cSCC. To date, InflaRx has recruited nine patients in Arm A of this study (vilobelimab alone). Interim clinical data are expected in the second half of 2022. Arm B of this study (vilobelimab plus pembrolizumab) has enrolled nine patients so far in the first two dose groups. The interim analysis of Arm B is expected once ten patients treated at the dose level recommended by the independent Steering Committee are evaluable for response assessment. These data, which are required to move to the second stage of the Phase II trial, are expected to be available in the second half of 2023.
INF904 – Small Molecule C5aR Inhibitor:
InflaRx expects to initiate a Phase I program in the second half of 2022 and plans to study INF904 in complement-mediated, chronic autoimmune and inflammatory diseases where oral administration is the preferred choice for patients.
Financial Highlights – Q2 2022
Research and Development Expenses
Research and development expenses incurred for the six months ended June 30, 2022 increased compared to the corresponding period in 2021 by €5.4 million to €21.7 million. This increase was primarily due to higher expenses for the Phase III part of the COVID-19 trial as well as costs for manufacturing development activities and was driven by an overall increase in third-party expenses of €4.3 million.
General and Administrative Expenses
General and administrative expenses increased by €3.0 million to €8.7 million for the six months ended June 30, 2022, from €5.7 million for the six months ended June 30, 2021. This increase is primarily attributable to higher expenses associated with equity-settled share-based compensation recognized in personnel expenses. Furthermore, legal, consulting and other expenses increased by €2.0 million to €4.2 million for the six months ended June 30, 2022, from €2.2 million, mainly due to consulting, implementation and testing costs of the internal control over financial reporting (ICFR) environment.
3 |
Other income
Other income for the six months ended June 30, 2022 amounted to €14.4 million. This was attributable to income recognized from grant payments received from the German federal government for the development of vilobelimab in COVID-19, including expenses related to clinical development and manufacturing process development.
Net Financial Result
Net financial result increased by €1.4 million to €2.4 million for the six months ended June 30, 2022, from €1.0 million for the six months ended June 30, 2021. This increase was mainly attributable to lower foreign exchange losses which decreased by €1.4 million.
Net Loss
Net loss for the six months ended June 30, 2022 was €13.5 million, compared to €20.9 million for the six months ended June 30, 2021.
Net Cash Used in Operating Activities
Net cash used in operating activities increased by €7.1 million to €25.4 million for the six months ended June 30, 2022 compared to the six months ended June 30, 2021, during which net cash used in operating activities was €18.3 million.
Cash, Cash Equivalents and Marketable Securities
On June 30, 2022, the Company’s total funds available were approximately €91.8 million, composed of cash and cash equivalents of €15.4 million and marketable securities of €76.4 million. These funds are expected to finance operations until year-end 2024.
Additional information regarding these results and other relevant information is included in the notes to the unaudited interim condensed consolidated financial statements as of June 30, 2022, and the three and six months ended June 30, 2022 and 2021, as well as the consolidated financial statements as of and for the year ended December 31, 2021 in “ITEM 18. Financial Statements,” in InflaRx’s Annual Report on Form 20-F for the year ended December 31, 2021 as filed with the U.S. Securities and Exchange Commission (SEC).
4 |
InflaRx N.V. and subsidiaries
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and six months ended June 30, 2022 and 2021
|
| For the three months ended June 30, |
|
| For the six months ended June 30, |
| ||||||||||
(in €, except for share data) |
|
| 2022 (unaudited) |
|
| 2021 (unaudited) |
|
| 2022 (unaudited) |
|
| 2021 (unaudited) | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development expenses |
|
| (11,180,958 | ) |
|
| (11,299,270 | ) |
|
| (21,652,881 | ) |
|
| (16,206,155 | ) |
General and administrative expenses |
|
| (4,346,965 | ) |
|
| (2,697,839 | ) |
|
| (8,734,408 | ) |
|
| (5,720,177 | ) |
Total Operating Expenses |
|
| (15,527,923 | ) |
|
| (13,997,109 | ) |
|
| (30,387,289 | ) |
|
| (21,926,332 | ) |
Other income |
|
| 14,441,541 |
|
|
| 15,216 |
|
|
| 14,443,135 |
|
|
| 20,678 |
|
Other expenses |
|
| (279 | ) |
|
| (279 | ) |
|
| (844 | ) |
|
| (844 | ) |
Operating Result |
|
| (1,086,661 | ) |
|
| (13,982,172 | ) |
|
| (15,944,999 | ) |
|
| (21,906,498 | ) |
Finance income |
|
| 82,401 |
|
|
| 35,622 |
|
|
| 110,362 |
|
|
| 58,584 |
|
Finance expenses |
|
| (7,945 | ) |
|
| (3,050 | ) |
|
| (32,531 | ) |
|
| (6,734 | ) |
Foreign exchange result |
|
| 1,563,580 |
|
|
| (826,303 | ) |
|
| 2,291,513 |
|
|
| 905,367 |
|
Other financial result |
|
| (86,000 | ) |
|
| (5,000 | ) |
|
| 39,000 |
|
|
| 43,000 |
|
Income Taxes |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Income (Loss) for the Period |
|
| 465,376 |
|
|
| (14,780,903 | ) |
|
| (13,536,654 | ) |
|
| (20,906,280 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding |
|
| 44,203,763 |
|
|
| 44,186,279 |
|
|
| 44,203,763 |
|
|
| 39,024,533 |
|
Income (Loss) per share (basic/diluted) |
|
| 0.01 |
|
|
| (0.33 | ) |
|
| (0.31 | ) |
|
| (0.54 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the Period |
|
| 465,376 |
|
| (14.780.903) |
|
|
| (13,536,654 | ) |
|
| (20,906,280 | ) | |
Other comprehensive income (loss) that may be reclassified to profit or loss in subsequent periods: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange differences on translation of foreign currency |
|
| 4,408,940 |
|
|
| (1,427,302 | ) |
|
| 5,718,815 |
|
|
| 2,077,397 |
|
Total Comprehensive Income (Loss) |
|
| 4,874,316 |
|
|
| (16,208,205 | ) |
|
| (7,817,839 | ) |
|
| (18,828,883 | ) |
5 |
InflaRx N.V. and subsidiaries
Unaudited Condensed Consolidated Statements of Financial Position as of June 30, 2022 and December 31, 2021
in € |
| June 30, 2022 (unaudited) |
|
| December 31, 2021 |
| ||
|
|
|
|
|
|
| ||
ASSETS |
|
|
|
|
|
| ||
Non-current assets |
|
|
|
|
|
| ||
Property and equipment |
|
| 231,133 |
|
|
| 274,373 |
|
Right-of-use assets |
|
| 1,506,039 |
|
|
| 1,408,078 |
|
Intangible assets |
|
| 187,218 |
|
|
| 235,216 |
|
Other assets |
|
| 341,666 |
|
|
| 336,566 |
|
Financial assets |
|
| 237,412 |
|
|
| 27,206,990 |
|
Total non-current assets |
|
| 2,503,468 |
|
|
| 29,461,224 |
|
Current assets |
|
|
|
|
|
|
|
|
Current other assets |
|
| 10,130,597 |
|
|
| 10,983,458 |
|
Current tax assets |
|
| 1,518,072 |
|
|
| 1,282,177 |
|
Financial assets from government grants |
|
| 8,260,503 |
|
|
| — |
|
Other financial assets |
|
| 76,804,249 |
|
|
| 57,162,266 |
|
Cash and cash equivalents |
|
| 15,416,152 |
|
|
| 26,249,995 |
|
Total current assets |
|
| 112,129,573 |
|
|
| 95,677,896 |
|
TOTAL ASSETS |
|
| 114,633,041 |
|
|
| 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 |
|
| 35,259,689 |
|
|
| 30,591,209 |
|
Accumulated deficit |
|
| (227,512,333 | ) |
|
| (213,975,679 | ) |
Other components of equity |
|
| 8,769,086 |
|
|
| 3,050,270 |
|
Total equity |
|
| 102,131,638 |
|
|
| 105,280,996 |
|
Non-current liabilities |
|
|
|
|
|
|
|
|
Lease liabilities |
|
| 1,170,237 |
|
|
| 1,066,354 |
|
Other liabilities |
|
| 37,733 |
|
|
| 35,019 |
|
Total non-current liabilities |
|
| 1,207,970 |
|
|
| 1,101,373 |
|
Current liabilities |
|
|
|
|
|
|
|
|
Trade and other payables |
|
| 7,912,503 |
|
|
| 8,574,244 |
|
Liabilities from government grants received |
|
| 2,145,135 |
|
|
| 8,300,000 |
|
Lease liabilities |
|
| 370,153 |
|
|
| 366,171 |
|
Employee benefits |
|
| 735,304 |
|
|
| 1,378,130 |
|
Other financial liabilities |
|
| 130,338 |
|
|
| 138,206 |
|
Total current liabilities |
|
| 11,293,433 |
|
|
| 18,756,751 |
|
Total Liabilities |
|
| 12,501,404 |
|
|
| 19,858,124 |
|
TOTAL EQUITY AND LIABILITIES |
|
| 114,633,041 |
|
|
| 125,139,120 |
|
6 |
InflaRx N.V. and subsidiaries
Unaudited Condensed Consolidated Statements of Changes in Shareholders’ Equity for the six months ended June 30, 2022 and 2021
(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 |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (13,536,654 | ) |
|
| — |
|
|
| (13,536,654 | ) |
Exchange differences on translation of foreign currency |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 5,718,815 |
|
|
| 5,718,815 |
|
Total comprehensive loss |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (13,536,654 | ) |
|
| 5,718,815 |
|
|
| (7,817,839 | ) |
Equity-settled share-based payment |
|
| — |
|
|
| — |
|
|
| 4,668,481 |
|
|
| — |
|
|
| — |
|
|
| 4,668,481 |
|
Balance as of June 30, 2022 |
|
| 5,304,452 |
|
|
| 280,310,744 |
|
|
| 35,259,689 |
|
|
| (227,512,333 | ) |
|
| 8,769,086 |
|
|
| 102,131,638 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (20,906,280 | ) |
|
| — |
|
|
| (20,906,280 | ) |
Exchange differences on translation of foreign currency |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 2,077,397 |
|
|
| 2,077,397 |
|
Total comprehensive loss |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (20,906,280 | ) |
|
| 2,077,397 |
|
|
| (18,828,883 | ) |
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 |
|
| — |
|
|
| — |
|
|
| 2,687,779 |
|
|
| — |
|
|
| — |
|
|
| 2,687,779 |
|
Share options exercised |
|
| 41,741 |
|
|
| 921,994 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 963,735 |
|
Balance as of June 30, 2021 |
|
| 5,302,354 |
|
|
| 280,261,994 |
|
|
| 28,946,783 |
|
|
| (189,251,900 | ) |
|
| 1,649,393 |
|
|
| 123,609,838 |
|
7 |
InflaRx N.V. and subsidiaries
Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021
in € |
| For the six months ended June 30, 2022 (unaudited) |
|
| For the six months ended June 30, 2021 (unaudited) |
| ||
|
|
|
|
|
|
| ||
Operating activities |
|
|
|
|
|
| ||
Loss for the period |
|
| (13,536,654 | ) |
|
| (20,906,280 | ) |
Adjustments for: |
|
|
|
|
|
|
|
|
Depreciation & amortization of property and equipment, right-of-use assets and intangible assets |
|
| 300,870 |
|
|
| 337,581 |
|
Net financial result |
|
| (2,408,345 | ) |
|
| (1,000,217 | ) |
Share-based payment expense |
|
| 4,668,481 |
|
|
| 2,687,779 |
|
Net foreign exchange differences |
|
| 130,347 |
|
|
| 71,050 |
|
Changes in: |
|
|
|
|
|
|
|
|
Financial assets from government grants |
|
| (8,260,503 | ) |
|
| — |
|
Other assets |
|
| 611,843 |
|
|
| 172,001 |
|
Employee benefits |
|
| (640,112 | ) |
|
| (662,388 | ) |
Other liabilities |
|
| (7,867 | ) |
|
| 7,020 |
|
Liabilities from government grants |
|
| (6,154,865 | ) |
|
| — |
|
Trade and other payables |
|
| (661,741 | ) |
|
| 672,727 |
|
Interest received |
|
| 631,504 |
|
|
| 371,665 |
|
Interest paid |
|
| (32,039 | ) |
|
| (5,491 | ) |
Net cash used in operating activities |
|
| (25,359,081 | ) |
|
| (18,254,553 | ) |
Investing activities |
|
|
|
|
|
|
|
|
Purchase of intangible assets, property and equipment |
|
| (9,728 | ) |
|
| (18,734 | ) |
Purchase of current financial assets |
|
| (47,031,216 | ) |
|
| (27,535,842 | ) |
Proceeds from the maturity of financial assets |
|
| 59,595,044 |
|
|
| 29,497,122 |
|
Net cash from investing activities |
|
| 12,554,101 |
|
|
| 1,942,546 |
|
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 |
|
| (182,014 | ) |
|
| (183,128 | ) |
Net cash from (used in) financing activities |
|
| (182,014 | ) |
|
| 61,703,934 |
|
Net decrease/increase in cash and cash equivalents |
|
| (12,986,995 | ) |
|
| 45,391,927 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
| 2,153,152 |
|
|
| 999,820 |
|
Cash and cash equivalents at beginning of period |
|
| 26,249,995 |
|
|
| 25,968,681 |
|
Cash and cash equivalents at end of period |
|
| 15,416,152 |
|
|
| 72,360,428 |
|
8 |
About InflaRx N.V.:
InflaRx (Nasdaq: IFRX) is a clinical-stage biopharmaceutical company focused on applying its proprietary technology to discover and develop first-in-class or best-in-class, potent and specific inhibitors of C5a and C5aR. Complement C5a and its receptor C5aR are powerful inflammatory mediators involved in the progression of a wide variety of autoimmune and other inflammatory diseases. InflaRx was founded in 2007, and the group has offices and subsidiaries in Jena and Munich, Germany, as well as Ann Arbor, MI, USA. For further information, please visit www.inflarx.de.
The COVID-19 related work is partly funded by the German federal government through grant number 16LW0113 (VILO-COVID). All responsibility for the content of this work lies with InflaRx.
Contacts:
InflaRx N.V.
e-mail: IR@inflarx.de
MC Services AG
Katja Arnold, Laurie Doyle, Andreas Jungfer
e-mail: inflarx@mc-services.eu
Europe: +49 89-210 2280
US: +1-339-832-0752
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements. All statements other than statements of historical fact are forward-looking statements, which are often indicated by terms such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “believe,” “estimate,” “predict,” “potential” or “continue” and similar expressions. Forward-looking statements appear in a number of places throughout this release and may include statements regarding InflaRx’s intentions, beliefs, projections, outlook, analyses and current expectations concerning, among other things, the Company’s ongoing and planned pre-clinical development and clinical trials, including the development of vilobelimab to treat pyoderma gangrenosum (PG) and critical COVID-19; the Company’s submission of an application to the FDA in the third quarter of 2022 for emergency use authorization for vilobelimab to treat critically ill COVID-19 patients; the impact of the COVID-19 pandemic on the Company; the timing and its ability to commence and conduct clinical trials; potential results from current or potential future collaborations; its ability to make regulatory filings, obtain positive guidance from regulators, and obtain and maintain regulatory approvals for its product candidates; its intellectual property position; its ability to develop commercial functions; expectations regarding clinical trial data; decisions regarding the strategic direction of the Company; its results of operations, cash needs, financial condition, liquidity, prospects, future transactions, growth and strategies; the industry in which the Company operates; the trends that may affect the industry or the Company; its status as foreign private issuer; and the risks, uncertainties and other factors described under the heading “Risk Factors” in InflaRx’s periodic filings with the SEC. These statements speak only as of the date of this press release and involve known and unknown risks, uncertainties and other important factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Given these risks, uncertainties and other factors, you should not place undue reliance on these forward-looking statements, and InflaRx assumes no obligation to update these forward-looking statements, even if new information becomes available in the future, except as required by law.
9 |
Cover |
6 Months Ended |
---|---|
Jun. 30, 2022 | |
Cover [Abstract] | |
Entity Registrant Name | InflaRx N.V. |
Entity Central Index Key | 0001708688 |
Document Type | 6-K |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Period End Date | Jun. 30, 2022 |
Document Fiscal Period Focus | Q2 |
Document Fiscal Year Focus | 2022 |
Entity Address Address Line 1 | Winzerlaer Str. 2 |
Entity Address Address Line 2 | 07745 |
Entity Address City Or Town | Jena |
Entity Address Country | DE |
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2022
EUR (€)
€ / shares
shares
|
Jun. 30, 2021
EUR (€)
€ / shares
shares
|
Jun. 30, 2022
EUR (€)
€ / shares
shares
|
Jun. 30, 2022
USD ($)
shares
|
Jun. 30, 2021
EUR (€)
€ / shares
shares
|
|
Operating Expenses | |||||
Research and development expenses | € (11,180,958) | € (11,299,270) | € (21,652,881) | € (16,206,155) | |
General and administrative expenses | (4,346,965) | (2,697,839) | (8,734,408) | (5,720,177) | |
Total Operating Expenses | (15,527,923) | (13,997,109) | (30,387,289) | (21,926,332) | |
Other income | 14,441,541 | 15,216 | 14,443,135 | 20,678 | |
Other expenses | (279) | (279) | (844) | (844) | |
Operating Result | (1,086,661) | (13,982,172) | (15,944,999) | (21,906,498) | |
Finance income | 82,401 | 35,622 | 110,362 | 58,584 | |
Finance expenses | (7,945) | (3,050) | (32,531) | (6,734) | |
Foreign exchange result | 1,563,580 | (826,303) | 2,291,513 | $ 2,291,513 | 905,367 |
Other financial result | (86,000) | (5,000) | 39,000 | 43,000 | |
Income Taxes | 0 | 0 | 0 | 0 | |
Income (Loss) for the Period | € 465,376 | € (14,780,903) | € (13,536,654) | € (20,906,280) | |
Share Information | |||||
Weighted average number of shares outstanding | shares | 44,203,763 | 44,186,279 | 44,203,763 | 44,203,763 | 39,024,533 |
Income (Loss) per share (basic/diluted) | € / shares | € 0.01 | € (0.33) | € (0.31) | € (0.54) | |
Other comprehensive income (loss) that may be reclassified to profit or loss in subsequent periods: | |||||
Exchange differences on translation of foreign currency | € 4,408,940 | € (1,427,302) | € 5,718,815 | € 2,077,397 | |
Total Comprehensive Income (Loss) | € 4,874,316 | € (16,208,205) | € (7,817,839) | € (18,828,883) |
Unaudited Condensed Consolidated Statements of Financial Position - EUR (€) |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Non-current assets | ||
Property and equipment | € 231,133 | € 274,373 |
Right-of-use assets | 1,506,039 | 1,408,078 |
Intangible assets | 187,218 | 235,216 |
Other assets | 341,666 | 336,566 |
Financial assets | 237,412 | 27,206,990 |
Total non-current assets | 2,503,468 | 29,461,224 |
Current assets | ||
Current other assets | 10,130,597 | 10,983,458 |
Current tax assets | 1,518,072 | 1,282,177 |
Financial assets from government grants | 8,260,503 | 0 |
Other financial assets | 76,804,249 | 57,162,266 |
Cash and cash equivalents | 15,416,152 | 26,249,995 |
Total current assets | 112,129,573 | 95,677,896 |
TOTAL ASSETS | 114,633,041 | 125,139,120 |
Equity | ||
Issued capital | 5,304,452 | 5,304,452 |
Share premium | 280,310,744 | 280,310,744 |
Other capital reserves | 35,259,689 | 30,591,209 |
Accumulated deficit | (227,512,333) | (213,975,679) |
Other components of equity | 8,769,086 | 3,050,270 |
Total equity | 102,131,638 | 105,280,996 |
Non-current liabilities | ||
Lease liabilities | 1,170,237 | 1,066,354 |
Other liabilities | 37,733 | 35,019 |
Total non-current liabilities | 1,207,970 | 1,101,373 |
Current liabilities | ||
Trade and other payables | 7,912,503 | 8,574,244 |
Liabilities from government grants | 2,145,135 | 8,300,000 |
Lease liabilities | 370,153 | 366,171 |
Employee benefits | 735,304 | 1,378,130 |
Other liabilities | 130,338 | 138,206 |
Total current liabilities | 11,293,433 | 18,756,751 |
Total Liabilities | 12,501,404 | 19,858,124 |
TOTAL EQUITY AND LIABILITIES | € 114,633,041 | € 125,139,120 |
Unaudited Condensed Consolidated Statements of Changes in Shareholders' Equity - EUR (€) |
Total |
Number of Common Shares |
Issued Capital |
Share Premium |
Other Capital Reserves |
Accumulated Deficit |
Other Components of Equity |
---|---|---|---|---|---|---|---|
Balance, shares at Dec. 31, 2020 | 28,228,415 | ||||||
Balance, amount at Dec. 31, 2020 | € 77,863,880 | € 3,387,410 | € 220,289,876 | € 26,259,004 | € (168,345,620) | € (3,726,790) | |
Statement [Line Items] | |||||||
Loss for the period | (20,906,280) | 0 | 0 | 0 | (20,906,280) | 0 | |
Exchange differences on translation of foreign currency | 2,077,397 | 0 | 0 | 0 | 0 | 2,077,397 | |
Total comprehensive loss | (18,828,883) | 0 | 0 | 0 | (20,906,280) | 2,077,397 | |
Issuance of common shares and warrants, shares | 15,610,022 | ||||||
Issuance of common shares and warrants, amount | 65,142,549 | 1,873,203 | 63,269,346 | 0 | 0 | 0 | |
Transaction costs | (4,219,222) | 0 | (4,219,222) | 0 | 0 | 0 | |
Equity-settled share-based payments | 2,687,779 | 0 | 0 | 2,687,779 | 0 | 0 | |
Share options exercised, shares | 347,842 | ||||||
Share options exercised, amount | 963,735 | 41,741 | 921,994 | 0 | 0 | 0 | |
Balance, shares at Jun. 30, 2021 | 44,186,279 | ||||||
Balance, amount at Jun. 30, 2021 | 123,609,838 | 5,302,354 | 280,261,994 | 28,946,783 | (189,251,900) | 1,649,393 | |
Balance, shares at Dec. 31, 2021 | 44,203,763 | ||||||
Balance, amount at Dec. 31, 2021 | 105,280,996 | 5,304,452 | 280,310,744 | 30,591,209 | (213,975,679) | 3,050,271 | |
Statement [Line Items] | |||||||
Loss for the period | (13,536,654) | 0 | 0 | 0 | (13,536,654) | 0 | |
Exchange differences on translation of foreign currency | 5,718,815 | 0 | 0 | 0 | 0 | 5,718,815 | |
Total comprehensive loss | (7,817,839) | 0 | 0 | 0 | (13,536,654) | 5,718,815 | |
Transaction costs | 0 | ||||||
Equity-settled share-based payments | 4,668,481 | 0 | 0 | 4,668,481 | 0 | 0 | |
Balance, shares at Jun. 30, 2022 | 44,203,763 | ||||||
Balance, amount at Jun. 30, 2022 | € 102,131,638 | € 5,304,452 | € 280,310,744 | € 35,259,689 | € (227,512,333) | € 8,769,086 |
Summary of significant accounting policies |
6 Months Ended | |||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | ||||||||||||||||||||||||||||
Summary of significant accounting policies | ||||||||||||||||||||||||||||
Summary of significant accounting policies | Summary of significant accounting policies and other disclosures
Reporting entity and Group’s structure
InflaRx N.V. is a Dutch public company with limited liability (naamloze vennootschap) with its corporate seat in Amsterdam, The Netherlands, and is registered in the Commercial Register of The Netherlands Chamber of Commerce Business Register under CCI number 68904312. The Company’s registered office is at Winzerlaer Straße 2 in 07745 Jena, Germany. Since November 10, 2017, InflaRx N.V.’s common shares have been listed on The NASDAQ Global Select Market under the symbol IFRX.
InflaRx is a clinical-stage biopharmaceutical Group focused on applying its proprietary anti-C5a and C5aR technologies to discover and develop first-in-class, potent and specific inhibitors of the complement activation factor known as C5a and its receptor known as C5aR.
These consolidated financial statements of InflaRx comprise the Company and its wholly-owned subsidiaries InflaRx GmbH, Jena, Germany and InflaRx Pharmaceutical Inc., Ann Arbor, Michigan, United States (together referred to as “the Group”).
InflaRx GmbH is a clinical-stage biopharmaceutical company founded in 2008. In 2017, InflaRx N.V. became the sole shareholder of InflaRx GmbH through the contribution of the subsidiary’s shares to InflaRx N.V. by its existing shareholders in exchange of new shares issued by InflaRx N.V.
Basis of preparation
These interim condensed consolidated financial statements for the three- and six-month reporting periods ended June 30, 2022 and 2021 have been prepared in accordance with IAS 34 Interim Financial Reporting. These condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements. Accordingly, this report is to be read in conjunction with the financial statements in our annual report for the year ended December 31, 2021 on Form 20-F.
The interim condensed consolidated financial statements were authorized for issue by the Board of Directors on August 4, 2022.
The financial statements are presented in Euro (€). Euro is the functional currency of InflaRx GmbH. The functional currency of InflaRx N.V. and InflaRx Pharmaceutical Inc. is U.S. Dollars. All financial information presented in Euro has been rounded. Accordingly, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that precede them or may deviate from other tables.
The accounting policies adopted are consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year ended December 31, 2021, except for the adoption of new standards effective as of January 1, 2022 as set out below. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.
The following amendments have been adopted effective January 1, 2022 and do not have a material impact on the consolidated financial statements of the Group:
The following standards issued will be adopted in a future period and the potential impact, if any, they will have on the Group’s consolidated financial statements is being assessed:
Significant events of the quarter and changes in circumstances
Russian-Ukraine Conflict
The conflict between Russia and Ukraine has resulted, and is expected to further result, in significant disruption, instability and volatility in global markets, as well as higher energy and other commodity prices. Since the Company is not currently conducting any business or receiving any services from vendors located in Russia or Ukraine, it does not expect that the ongoing war will have a direct impact on its operations in the near term. However, the Company may be affected by price increases or certain fiscal policy changes in Germany, where the Company is headquartered, such as new tax legislation, economic sanctions and comparable measures, although at this point, it does not foresee any such macroeconomic changes that are expected to have a direct impact on its business operations.
COVID-19 Pandemic
The COVID-19 pandemic continues to impact our operations as many governments continue to maintain measures to slow the spread of the outbreak through quarantines, travel restrictions, closure of borders and requiring maintenance of social distancing measures.
During the first six months of 2022, the Company has continued to use a hybrid working model that supports a blend of in-office and remote employees, depending on their role and location. Our service providers have continued at regular operational levels, and the recruitment of patients and new clinical trial sites also continued in the first six months of 2022 through the date of issuance of these interim financial statements. Business travel, however, has been significantly reduced and widely replaced by other means of communication, e.g. through video-conferencing.
Development programs
On May 12, 2022 the Company announced the results of a strategic review of its development programs considering the current financing environment. As a result of this strategic review, the Company decided to halt the clinical development of vilobelimab in HS for the time being. Furthermore, given the resources required and long duration of necessary Phase III studies of vilobelimab in AAV needed to potentially gain regulatory approval in this indication, the Company also decided to halt the clinical development of vilobelimab in AAV for the time being. Moving forward, the development focus will be on the Phase III development of vilobelimab in PG, on gaining regulatory approval for vilobelimab in severe COVID-19 and in starting the clinical development of INF904.
On June 29, 2022, the Company announced that vilobelimab has been granted orphan drug designation for the treatment of PG by both the Food and Drug Administration (FDA) in the US and the European Medicines Agency (EMA) in Europe. In addition, the Company reported about a productive end-of-phase II meeting with the FDA related to its plans for a Phase III development program in PG. The FDA indicated its support for a randomized, controlled Phase III development program during the meeting and offered to review the study protocol, recognizing PG as a serious and rare condition. Based on the FDA’s feedback and recommendations, InflaRx is now finalizing the design for a Phase III trial and continues to be in dialogue with the FDA related to this. Subsequently, on July 6, 2022 the Company announced that the FDA has also granted a Fast Track designation to the development of vilobelimab for the treatment of PG. Following the encouraging Phase III results from the randomized, placebo-controlled, multi-national PANAMO study in mechanically ventilated severe COVID-19 patients announced on March 31, 2022, on July 26, 2022, InflaRx announced its plans to submit a request for Emergency Use Authorization (EUA), following constructive interactions with the US Food and Drug Administration (FDA) at a recently held Type B meeting. The application for EUA is planned to be submitted by end of Q3 2022. In addition, the Company is in ongoing dialogue with the EMA related to next regulatory steps for vilobelimab in mechanically ventilated severe COVID-19 patients towards a potential filing for approval for this indication.
Management changes
On June 29, 2022, the Company announced the departure of Mr. Jordan Zwick, its Chief Strategy Officer. Mr. Zwick left InflaRx to pursue other professional opportunities. However, Mr. Zwick agreed to continue to serve as an advisor to the Company.
In July, Dr. Korinna Pilz, the Chief Clinical Development Officer informed the Company about her intention to leave InflaRx for personal reasons. The Company subsequently signed a separation agreement with Dr. Pilz, in which the parties mutually agreed that she will continue to provide her services until October 28, 2022. Beyond this date Dr. Pilz will continue to advise us on specific matters on an as needed basis.
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Other income | Other income
Other income increased by €14.4 million. The increase was due to an increase in amounts recognized from grant payments received from the German government.
A portion of this increase is attributable to the recognition of €7.1 million, which was initially deferred in Q4 2021 as a liability as, prior to Q2 2022, there was not reasonable assurance as to whether all grant conditions were fulfilled. With receipt in Q2 2022 of a written confirmation from the agency administering the grant on behalf of the German federal government, reasonable assurance of grant conditions being fulfilled was reached. Further, this confirmation amended the grant, including amending the amounts eligible for each of the various cost categories covered by the grant, with no change to the overall grant amount, and amending the timeline during which eligible costs related to the manufacturing process development activities can be incurred. In addition, reimbursable costs incurred during Q1 and Q2 2022, in the amount of €7.3 million, were also recognized as other income in Q2 2022.
Going forward, the Company will recognize other income as reimbursable costs under the grant are incurred. Grant payments received for the Company’s pre-payment of goods and services will be recognized as a liability, while reimbursable amounts for costs incurred but not yet claimed for reimbursement will be recorded as other receivables in “Financial assets in government grants.” |
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Net financial result | Net financial result
The net financial result is comprised of the following items for the three and six months ended June 30:
Interest income results from marketable securities and short-term deposits in U.S. Dollars held by the Company and its subsidiaries.
Foreign exchange income and expense is mainly derived from the translation of the U.S. Dollar cash, cash equivalents and securities held by the Company and its subsidiaries.
Other financial result includes an allowance for expected credit loss on marketable securities. |
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Other assets | Other assets
Prepaid expense mainly consisted of prepaid insurance expense.
As of June 30, 2022, prepayments on research & development (R&D) projects amounted to €8.8 million compared to €10.6 million as of December 31, 2021, and consisted of prepayments on clinical and R&D material production contracts. |
Financial assets and financial liabilities |
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Financial assets and financial liabilities | Financial assets and financial liabilities
Set out below is an overview of financial assets and liabilities, other than cash and cash equivalents, held by the Group as of June 30, 2022 and December 31, 2021:
As of June 30, 2022, financial assets from government grants amount to €8.3 million. Thereof €1.6 million are claims for which a request for payment has already been submitted. €6.7 million of the financial assets are claims for eligible costs incurred as of Q2 2022, but for which we expect a request for payment to be submitted in future periods (also see Note 2).
As of June 30, 2022, the fair value of current and non-current financial assets (primarily quoted debt securities) amounted to €84.3 million (Level 1). The Group’s debt instruments at amortized cost consist solely of quoted securities that are graded highly by credit rating agencies such as S&P Global and, therefore, are considered low credit risk investments.
Liabilities from government grants partly comprise funds received for advance payments to third parties. If goods or services from such third parties have not been received, corresponding amounts are not recognized as other income. Our right to retain these funds is contingent on meeting all grant conditions. |
Cash and cash equivalents information |
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Cash and cash equivalents information | Cash and cash equivalents
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Equity Abstract | |
Equity | Equity
On July 8, 2020, the Company filed a Form F-3 (Registration Statement) with the United States Securities and Exchange Commission (SEC) with respect to the offer and sale of securities of the Company. The Company also filed a prospectus supplement (Prospectus Supplement) with the SEC relating to an at-the-market program providing for the sale of up to $50.0 million of its common shares over time pursuant to a Sales Agreement with SVB Leerink LLC. The remaining value authorized for sale under the Sales Agreement amounts to $35.2 million.
On February 25, 2021, the Company sold an aggregate of 15,000,000 common shares through a public offering. The common shares were sold at a price of $5.00 per share and have a nominal value of €0.12 per share. For each common share purchased, an investor also received a warrant to purchase a common share at an exercise price of $5.80. The shares and warrants were issued and the transaction closed on March 1, 2021 with gross offering proceeds to the Group from this offering being $75.0 million (€62.2 million), before deducting $4.5 million (€3.7 million) in underwriting discounts and other offering expenses of $0.4 million (€0.3 million). The warrants were exercisable immediately and expired on March 1, 2022. No warrants were exercised. |
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Share-based payments | Share-based payments
Equity settled share-based payment arrangements
During its historical financing rounds prior to 2016, InflaRx GmbH granted stock options under the 2012 Stock Option Plan. Those InflaRx GmbH options were converted into options for common shares of InflaRx N.V. in November 2017:
Under the terms and conditions of the Share Option Plan 2016, InflaRx GmbH granted rights to subscribe for InflaRx GmbH’s common shares to directors, senior management and key employees. Those InflaRx GmbH options were converted into options for common shares of InflaRx N.V. in November 2017:
In conjunction with the closing of its initial public offering, InflaRx N.V. established a new incentive plan, the 2017 Long-Term Incentive Plan (“LTIP”). The initial maximum number of options to common shares available for issuance pursuant to the LTIP amounted to 2,341,097 common shares.
At the annual general meeting on July 16, 2020, the Company’s shareholders approved an amendment to the LTIP with effect from January 1, 2021:
On April 13, 2022, following the significant and persistent decrease of the stock price of the Company's common shares during the first half year 2022 and especially after March 31, 2022, the Board of Directors assessed its impact on the value of the options to purchase common shares in the Company's capital awarded under the LTIP and concluded that due to the extraordinary situation and in order to ensure that the options continue to be an appropriate performance incentive for the Company’s management, employees and directors, the exercise price of all outstanding and unexercised options held by active employees or directors of the Company or its affiliates would be adjusted to $1.86 per share.
The repricing decision on April 13, 2022 affected the 2016 Plan and the LTIP. 888,632 share options from the 2016 Plan and 4,544,248 share options from the LTIP were affected. The valuation of past grants with the new exercise price of $1.86 resulted in incremental fair values of the outstanding options (i.e., additional compensation expense had to be recognized). The number of share options granted during the six months ended June 30, 2022 under the LTIP was as follows:
The number of share options granted during the six months ended June 30, 2022 under the LTIP, considering the repricing decision on April 13, 2022 was as follows:
Share-based payment expense recognized
For the six months ended June 30, 2022, the Company recognized €4,668 thousand of share-based payment expense, which included an expense of €651 thousand for the valuation of past grants with the new exercise price as a result of the repricing of options. |
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Protective foundation | |
Protective foundation | Protective foundation
According to the articles of association of the Company, up to 110,000,000 common shares and up to 110,000,000 preferred shares with a nominal value of €0.12 per share are authorized to be issued. All shares are registered shares. No share certificates shall be issued.
In order to deter acquisition bids, the Company's general meeting of shareholders approved the right of an in-dependent foundation under Dutch law, or protective foundation, to exercise a call option pursuant to the call option agreement, upon which preferred shares will be issued by the Company to the protective foundation of up to 100% of the Company’s issued capital held by others than the protective foundation, minus one share. The protective foundation is expected to enter into a finance arrangement with a bank or, subject to applicable restrictions under Dutch law, the protective foundation may request us to provide, or cause the Company’s subsidiaries to provide, sufficient funding to the protective foundation to enable it to satisfy its payment obligation under the call option agreement.
These preferred shares will have both a liquidation and dividend preference over the Company's common shares and will accrue cash dividends at a pre-determined rate. The protective foundation would be expected to require us to cancel its preferred shares once the perceived threat to the Company and its stakeholders has been removed or sufficiently mitigated or neutralized. We believe that the call option does not represent a significant fair value based on a Level 3 valuation, since the preference shares are restricted in use and can be cancelled by us.
In the three and six months ended June 30, 2022, the Company expensed €15 thousand and €30 thousand, respectively, of ongoing costs to reimburse expenses incurred by the protective foundation. |
Summary of significant accounting policies and other disclosures (Policies) |
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Reporting entity and Group's structure | InflaRx N.V. is a Dutch public company with limited liability (naamloze vennootschap) with its corporate seat in Amsterdam, The Netherlands, and is registered in the Commercial Register of The Netherlands Chamber of Commerce Business Register under CCI number 68904312. The Company’s registered office is at Winzerlaer Straße 2 in 07745 Jena, Germany. Since November 10, 2017, InflaRx N.V.’s common shares have been listed on The NASDAQ Global Select Market under the symbol IFRX.
InflaRx is a clinical-stage biopharmaceutical Group focused on applying its proprietary anti-C5a and C5aR technologies to discover and develop first-in-class, potent and specific inhibitors of the complement activation factor known as C5a and its receptor known as C5aR.
These consolidated financial statements of InflaRx comprise the Company and its wholly-owned subsidiaries InflaRx GmbH, Jena, Germany and InflaRx Pharmaceutical Inc., Ann Arbor, Michigan, United States (together referred to as “the Group”).
InflaRx GmbH is a clinical-stage biopharmaceutical company founded in 2008. In 2017, InflaRx N.V. became the sole shareholder of InflaRx GmbH through the contribution of the subsidiary’s shares to InflaRx N.V. by its existing shareholders in exchange of new shares issued by InflaRx N.V. |
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Basis of preparation | These interim condensed consolidated financial statements for the three- and six-month reporting periods ended June 30, 2022 and 2021 have been prepared in accordance with IAS 34 Interim Financial Reporting. These condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements. Accordingly, this report is to be read in conjunction with the financial statements in our annual report for the year ended December 31, 2021 on Form 20-F.
The interim condensed consolidated financial statements were authorized for issue by the Board of Directors on August 4, 2022.
The financial statements are presented in Euro (€). Euro is the functional currency of InflaRx GmbH. The functional currency of InflaRx N.V. and InflaRx Pharmaceutical Inc. is U.S. Dollars. All financial information presented in Euro has been rounded. Accordingly, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that precede them or may deviate from other tables.
The accounting policies adopted are consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year ended December 31, 2021, except for the adoption of new standards effective as of January 1, 2022 as set out below. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.
The following amendments have been adopted effective January 1, 2022 and do not have a material impact on the consolidated financial statements of the Group:
The following standards issued will be adopted in a future period and the potential impact, if any, they will have on the Group’s consolidated financial statements is being assessed:
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Significant events of the quarter and changes in circumstances | Russian-Ukraine Conflict
The conflict between Russia and Ukraine has resulted, and is expected to further result, in significant disruption, instability and volatility in global markets, as well as higher energy and other commodity prices. Since the Company is not currently conducting any business or receiving any services from vendors located in Russia or Ukraine, it does not expect that the ongoing war will have a direct impact on its operations in the near term. However, the Company may be affected by price increases or certain fiscal policy changes in Germany, where the Company is headquartered, such as new tax legislation, economic sanctions and comparable measures, although at this point, it does not foresee any such macroeconomic changes that are expected to have a direct impact on its business operations.
COVID-19 Pandemic
The COVID-19 pandemic continues to impact our operations as many governments continue to maintain measures to slow the spread of the outbreak through quarantines, travel restrictions, closure of borders and requiring maintenance of social distancing measures.
During the first six months of 2022, the Company has continued to use a hybrid working model that supports a blend of in-office and remote employees, depending on their role and location. Our service providers have continued at regular operational levels, and the recruitment of patients and new clinical trial sites also continued in the first six months of 2022 through the date of issuance of these interim financial statements. Business travel, however, has been significantly reduced and widely replaced by other means of communication, e.g. through video-conferencing.
Development programs
On May 12, 2022 the Company announced the results of a strategic review of its development programs considering the current financing environment. As a result of this strategic review, the Company decided to halt the clinical development of vilobelimab in HS for the time being. Furthermore, given the resources required and long duration of necessary Phase III studies of vilobelimab in AAV needed to potentially gain regulatory approval in this indication, the Company also decided to halt the clinical development of vilobelimab in AAV for the time being. Moving forward, the development focus will be on the Phase III development of vilobelimab in PG, on gaining regulatory approval for vilobelimab in severe COVID-19 and in starting the clinical development of INF904.
On June 29, 2022, the Company announced that vilobelimab has been granted orphan drug designation for the treatment of PG by both the Food and Drug Administration (FDA) in the US and the European Medicines Agency (EMA) in Europe. In addition, the Company reported about a productive end-of-phase II meeting with the FDA related to its plans for a Phase III development program in PG. The FDA indicated its support for a randomized, controlled Phase III development program during the meeting and offered to review the study protocol, recognizing PG as a serious and rare condition. Based on the FDA’s feedback and recommendations, InflaRx is now finalizing the design for a Phase III trial and continues to be in dialogue with the FDA related to this. Subsequently, on July 6, 2022 the Company announced that the FDA has also granted a Fast Track designation to the development of vilobelimab for the treatment of PG. Following the encouraging Phase III results from the randomized, placebo-controlled, multi-national PANAMO study in mechanically ventilated severe COVID-19 patients announced on March 31, 2022, on July 26, 2022, InflaRx announced its plans to submit a request for Emergency Use Authorization (EUA), following constructive interactions with the US Food and Drug Administration (FDA) at a recently held Type B meeting. The application for EUA is planned to be submitted by end of Q3 2022. In addition, the Company is in ongoing dialogue with the EMA related to next regulatory steps for vilobelimab in mechanically ventilated severe COVID-19 patients towards a potential filing for approval for this indication.
Management changes
On June 29, 2022, the Company announced the departure of Mr. Jordan Zwick, its Chief Strategy Officer. Mr. Zwick left InflaRx to pursue other professional opportunities. However, Mr. Zwick agreed to continue to serve as an advisor to the Company.
In July, Dr. Korinna Pilz, the Chief Clinical Development Officer informed the Company about her intention to leave InflaRx for personal reasons. The Company subsequently signed a separation agreement with Dr. Pilz, in which the parties mutually agreed that she will continue to provide her services until October 28, 2022. Beyond this date Dr. Pilz will continue to advise us on specific matters on an as needed basis.
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Other income (Tables) |
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Schedule of other income |
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Net financial result (Tables) |
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Net financial result |
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Interest income results from marketable securities and short-term deposits |
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Foreign exchange income and expense |
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Other assets (Tables) |
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Schedule of other assets |
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Financial assets and financial liabilities (Tables) |
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Financial assets and financial liabilities |
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Cash and cash equivalents information (Tables) |
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Schedule of cash and cash equivalents |
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Share-based payments (Tables) |
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Share-based payments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock option activity |
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Fair value of options granted |
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Other income (Details) - EUR (€) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Other income from government grants | € 14,415,368 | € 0 | € 14,415,368 | € 0 |
Further other incomes | 26,173 | 15,216 | 27,767 | 20,678 |
Other incomes | € 14,441,541 | € 15,216 | € 14,443,135 | € 20,678 |
Other income (Details Narrative) - EUR (€) |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2022 |
Jun. 30, 2022 |
|
Other income (Details Narrative) | ||
Other income increased | € 14,400,000 | |
Recognition | 7,100,000 | |
Reimbursable costs | € 7,300,000.0 | € 7,300,000 |
Net financial result (Details) - EUR (€) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Net financial result | ||||
Interest income | € 82,401 | € 35,622 | € 110,362 | € 58,584 |
Interest Expenses | (2,243) | (305) | (22,102) | (2,885) |
Interest on lease liabilities | (5,702) | (2,745) | (10,429) | (3,849) |
Net financial result | € 74,456 | € 32,572 | € 77,831 | € 51,850 |
Net financial result (Details 1) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2022
EUR (€)
|
Jun. 30, 2021
EUR (€)
|
Jun. 30, 2022
EUR (€)
|
Jun. 30, 2022
USD ($)
|
Jun. 30, 2021
EUR (€)
|
|
Net financial result | |||||
Foreign exchange income | € 2,947,221 | € 1,635,201 | € 4,057,629 | € 4,092,239 | |
Foreign exchange expense | (1,383,641) | (2,461,504) | (1,766,116) | (3,186,872) | |
Foreign exchange net | € 1,563,580 | € (826,303) | € 2,291,513 | $ 2,291,513 | € 905,367 |
Net financial result (Details 2) - EUR (€) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Other financial result | ||||
Statement [Line Items] | ||||
Foreign exchange income and expense | € (86,000) | € (5,000) | € 39,000 | € 43,000 |
Other assets (Details) - EUR (€) |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Statement [Line Items] | ||
Non-current other assets | € 341,666 | € 336,566 |
Total current other assets | 11,648,669 | 12,265,635 |
Current other assets | 10,130,597 | 10,983,458 |
Other | 341,666 | 336,566 |
Current tax assets | ||
Statement [Line Items] | ||
Current other assets | 1,518,072 | 1,282,177 |
Others | ||
Statement [Line Items] | ||
Non-current other assets | 341,666 | 336,566 |
Current other assets | 1,343,166 | 334,284 |
Other | 1,645 | 0 |
Prepayments on Research Development Projects | ||
Statement [Line Items] | ||
Current other assets | € 8,785,786 | € 10,649,174 |
Other assets (Details Narrative) - EUR (€) € in Millions |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Prepaid research and development expense | € 8.8 | € 10.6 |
Financial assets and financial liabilities (Details) - EUR (€) |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Financial assets at amortized cost | ||
Non-current financial assets | € 237,412 | € 27,206,990 |
Financial assets from government grants | 8,260,503 | 0 |
Other current financial assets | 76,804,249 | 57,162,266 |
Financial liabilities at amortized cost | ||
Liabilities from government grants | 2,145,135 | 8,300,000 |
Trade and other payables | 7,912,503 | 16,874,244 |
Interest bearing loans and borrowings | 2,145,135 | 0 |
Non-current lease liabilities | 1,170,237 | 1,066,354 |
Current lease liabilities | € 370,153 | € 366,171 |
Financial assets and financial liabilities (Details Narrative) € in Millions |
Jun. 30, 2022
EUR (€)
|
---|---|
Financial assets and financial liabilities | |
Assets from government grants | € 8.3 |
Payment for grants | 1.6 |
Financial assets are claimed | 6.7 |
Fair value of current and non-current financial assets | € 84.3 |
Cash and cash equivalents (Details) - EUR (€) |
Jun. 30, 2022 |
Dec. 31, 2021 |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|---|---|
Statement [Line Items] | ||||
Short-term deposits | € 3,514 | € 12,584,892 | ||
Total Cash at banks | 15,412,638 | 13,665,102 | ||
Total cash and cash equivalents | 15,416,152 | 26,249,995 | € 72,360,428 | € 25,968,681 |
U.S. Dollars | ||||
Statement [Line Items] | ||||
Short-term deposits | 3,514 | 12,584,892 | ||
Total Cash at banks | 13,336,087 | 7,612,467 | ||
Euro | ||||
Statement [Line Items] | ||||
Total Cash at banks | € 2,076,551 | € 6,052,636 |
Equity (Details Narrative) - EUR (€) € / shares in Units, € in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended |
---|---|---|---|
Feb. 25, 2021 |
Jun. 30, 2022 |
Jun. 30, 2022 |
|
Other income (Details Narrative) | |||
Description of common shares Sales Agreement | the Company filed a Form F-3 (Registration Statement) with the United States Securities and Exchange Commission (SEC) with respect to the offer and sale of securities of the Company. The Company also filed a prospectus supplement (Prospectus Supplement) with the SEC relating to an at-the-market program providing for the sale of up to $50.0 million of its common shares over time pursuant to a Sales Agreement with SVB Leerink LLC | ||
Remaining value authorized for sale under the Sales Agreement | € 35,200 | € 35,200 | |
Sold common shares through a public offering | 15,000,000 | ||
Sold at a price | € 5.00 | ||
Warrant to purchase a common share at an exercise price | 5.80 | ||
Nominal value | € 0.12 | ||
Gross offering proceeds | € 3,700 | ||
Underwriting discounts | 400 | ||
Other offering expenses | € 300 | € 15 | € 30 |
Share-based payments (Details) |
6 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Share-based payments (Details) | ||
Outstanding,Beginning | 148,433 | 148,433 |
Exercised | 0 | 0 |
Outstanding,Ending | 148,433 | 148,433 |
Thereof vested | 148,433 | 148,433 |
Share-based payments (Details 1) |
6 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Statement [Line Items] | ||
Outstanding,Beginning | 148,433 | 148,433 |
Exercised | 0 | 0 |
Outstanding,Ending | 148,433 | 148,433 |
Thereof vested | 148,433 | 148,433 |
Option 2016 Member | ||
Statement [Line Items] | ||
Outstanding,Beginning | 888,632 | 1,094,852 |
Exercised | 0 | 202,020 |
Outstanding,Ending | 888,632 | 892,832 |
Thereof vested | 888,632 | 892,832 |
Share-based payments (Details 2) |
6 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Statement [Line Items] | ||
Outstanding,Beginning | 148,433 | 148,433 |
Exercised | 0 | 0 |
Outstanding,Ending | 148,433 | 148,433 |
Thereof vested | 148,433 | 148,433 |
Option LTIP Member | ||
Statement [Line Items] | ||
Outstanding,Beginning | 3,170,046 | 2,146,478 |
Granted | 1,561,666 | 870,928 |
Exercised | 0 | 145,822 |
Forfeited | 117,259 | 15,000 |
Outstanding,Ending | 4,614,453 | 2,856,584 |
Thereof vested | 3,306,162 | 1,954,858 |
Share-based payments (Details 3) |
6 Months Ended |
---|---|
Jun. 30, 2022
€ / shares
shares
| |
Statement [Line Items] | |
Share option | shares | 1,561,666 |
January Twelve One | |
Statement [Line Items] | |
Share option | shares | 1,516,666 |
Fair value at grant date per option (USD) | € 3.66 |
Fair value at grant date FX rate as of grant date | 0.9008 |
Fair value at grant date per option (EUR) | 3.30 |
Share price at grant date (USD) | € 4.13 |
Expected volatility | 1.35% |
Expected life (midpoint based) | € 5.31 |
Risk-free rate (interpolated, U.S. sovereign strips curve) | 1.57% |
January Twelve Two | |
Statement [Line Items] | |
Share option | shares | 45,000 |
Fair value at grant date per option (USD) | € 3.68 |
Fair value at grant date FX rate as of grant date | 0.9008 |
Fair value at grant date per option (EUR) | 3.32 |
Share price at grant date (USD) | € 4.13 |
Expected volatility | 1.35% |
Expected life (midpoint based) | € 5.50 |
Risk-free rate (interpolated, U.S. sovereign strips curve) | 1.59% |
Share-based payments (Details Narrative) |
6 Months Ended |
---|---|
Jun. 30, 2022
EUR (€)
€ / shares
shares
| |
Statement [Line Items] | |
Share options granted | 1,362,500 |
Exercise price fair value | € / shares | € 1.86 |
Share-based payment expense | € | € 4,668 |
Expense for valuation of past grants | € | € 651,000 |
Option 2016 Member | |
Statement [Line Items] | |
Share options | 888,632 |
Option LTIP Member | |
Statement [Line Items] | |
Number of options to common shares | 2,341,097 |
Exercise price | € / shares | € 1.86 |
Share options | 4,544,248 |
Protective foundation (Details Narrative) - EUR (€) |
1 Months Ended | 3 Months Ended | 6 Months Ended |
---|---|---|---|
Feb. 25, 2021 |
Jun. 30, 2022 |
Jun. 30, 2022 |
|
Protective foundation (Details Narrative) | |||
Other offering expenses | € 300,000 | € 15,000 | € 30,000 |
Number Of common shares authorised | 110,000,000 | 110,000,000 | |
Number Of preference shares authorised | € 110,000,000 | € 110,000,000 | |
Nominal value | € 0.12 | € 0.12 |
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