As indicated in Note 3, all financial assets and liabilities are shown at amortized cost. The following table shows the carrying amounts of financial assets and liabilities:


in CHF thousands	As of December 31,
Financial assets	2022		2021
Financial assets - non-current		50		52
Other current assets (without prepaids)		166		151
Accrued income		912		760
Cash and cash equivalents		19,786		46,277
Total		20,914		47,240


in CHF thousands	As of December 31,
Financial liabilities	2022		2021
Trade payables		3,867		824
Accrued expenses and other payables		8,011		3,045
Lease liabilities		633		770
Long-term financial debt related to preferred shares/accrued dividend		122,449		113,502
Total		134,960		118,141

Below is the net debt table of liabilities from financing activities:


in CHF thousands	Preferred shares			Leasing			Total
Net debt as of December 31, 2020		(53,978	)		(833	)		(54,811	)
Cashflows		(56,096	)		147			(55,948	)
Interest calculated on Series B & C shares		(4,996	)		-			(4,996	)
Transaction costs related to 2021		834			-			834
Oculis SA office lease addition/remeasurement		-			(28	)		(28	)
Interest calculated on leases		-			(49	)		(49	)
Indexation for the period		-			(26	)		(26	)
FX revaluation		735			18			753
Net debt as of December 31, 2021		(113,502	)		(770	)		(114,272	)
Cashflows		(2,030	)		204			(1,826	)
Interest calculated on Series B & C shares		(6,343	)		-			(6,343	)
Transaction costs related to 2022		54			-			54
Interest calculated on leases		-			(45	)		(45	)
Indexation for the period		-			(70	)		(70	)
FX revaluation		(628	)		48			(580	)
Net debt as of December 31, 2022		(122,449	)		(633	)		(123,082	)

Due to their short-term nature, the carrying value of cash and cash equivalents, trade and other receivables and trade and other payables approximates their fair value.

For long-term financial debt, resulting from the issuance of preferred shares as described in Note 14, the fair value can be determined from the similar or identical instruments issued by the Company during 2022. This level 2 value resulted in a fair value of CHF 115,707 thousand compared to a book value of CHF 122,449 thousand. In 2021, these shares had a book value of CHF 113,502 thousand while the fair value was CHF 107,187 thousand.

Since 2018 the Company implemented an Internal Control System (ICS), which includes a risk assessment. The ultimate responsibility of the risk management is of the Board of Directors and a yearly review takes place during one of the Board of Directors meetings.

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

In 2020, the Group had all of its grant income and a significant part of its expenses, assets and liabilities denominated in Islandic Krona (ISK). Starting in 2020, Oculis is also present in the U.S. and France with local currencies in US Dollar and Euro. Starting in 2021, Oculis also reports figures in HKD from its subsidiary in Hong Kong.

The following table demonstrates the sensitivity of reasonably possible changes in ISK, EUR, USD and HKD exchange rate on the Group net result or on equity:


	For the Years Ended / As of December 31,
in CHF thousands	2022						2021
Change in rate	Impact on loss			Impact on equity			Impact on loss			Impact on equity
+5% ISK		7			(16	)		(101	)		125
-5% ISK		(7	)		16			101			(125	)
+5% EUR		(4	)		99			(24	)		5
-5% EUR		4			(99	)		24			(5	)
+5% USD		7			138			(66	)		-
-5% USD		(7	)		(138	)		66			-
+5% HKD		-			(6	)		(1	)		(174	)
-5% HKD		-			6			1			174

The Company’s long-term financial liabilities, which result from the issuance of preferred shares as indicated in Note 14, bear a deemed interest resulting from the preferred dividend, due under certain circumstances, at a fixed rate of 6.00% per year. The other financial instruments of the Group are not bearing interest and are therefore not subject to interest rate risk.

As of December 31, 2022, there is no material credit risk in the Group. The maximum exposure is the carrying amount of cash and other receivables. There is no concentration of credit risk within the Group. Furthermore, there is no significant credit risk on cash and cash equivalents.

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. Liquidity management is performed by Group finance based on cash flow forecasts which are prepared on a rolling basis and focuses mainly on ensuring that the Group has sufficient cash to meet its operational needs. The Group’s liquidity needs have been historically satisfied by issuing preferred shares.

All of the Company’s financial instruments, except long-term financial liabilities and the long-term portion of the lease liabilities are due within one year.


in CHF thousands	As of December 31, 2022		Less than one year		Over one year		As of December 31, 2021		Less than one year		Over one year
Trade payables		3,867		3,867		-		824		824		-
Accrued expenses and other payables		8,011		8,011		-		3,045		3,045		-
Long-term financial debt		170,988		-		170,988		167,113		-		167,113
Lease liability		743		149		594		845		199		646
Total		183,609		12,027		171,582		171,827		4,068		167,759

Long-term financial liabilities result from the issuance of preferred shares as indicated in Note 18. They might become due in the case of certain liquidation or exit events within the next year.

Since its incorporation, the Group has primarily funded its operations through capital increases, and at the current development stage, the Group frequently raises new funds to finance its projects. Refer to Notes 14 and 15 for further details.