Cover
Cover | 6 Months Ended |
Jun. 30, 2022 | |
Entity Addresses [Line Items] | |
Document Type | F-1 |
Amendment Flag | false |
Entity Registrant Name | Midatech Pharma plc |
Entity Central Index Key | 0001643918 |
Entity Incorporation, State or Country Code | X0 |
Entity Address, Address Line One | Caspian Point |
Entity Address, Address Line Two | Caspian Way |
Entity Address, City or Town | Cardiff |
Entity Address, Country | GB |
Entity Address, Postal Zip Code | CF10 |
Country Region | +44 |
City Area Code | 29 |
Local Phone Number | 20480 180 |
Entity Emerging Growth Company | false |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | 850 Library Ave. |
Entity Address, Address Line Two | Suite 204 |
Entity Address, City or Town | Newark |
Entity Address, State or Province | DE |
Entity Address, Postal Zip Code | 19711 |
City Area Code | (302) |
Local Phone Number | 738-6680 |
Contact Personnel Name | Donald J. Puglisi |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - GBP (£) £ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Profit or loss [abstract] | |||||
Revenue | £ 468 | £ 401 | £ 578 | £ 343 | £ 674 |
Other income | 16 | 31 | 24 | 12 | 15 |
Research and development costs | (2,413) | (2,010) | (4,654) | (6,068) | (7,843) |
Administrative costs | (1,849) | (1,656) | (2,946) | (4,958) | (3,841) |
Loss from operations | (3,778) | (3,234) | (6,998) | (23,040) | (11,318) |
Finance income | 404 | 936 | 1 | 492 | |
Finance expense | (24) | (156) | (44) | (431) | (97) |
Loss before tax | (3,398) | (3,390) | (6,106) | (23,470) | (10,923) |
Taxation | 337 | 236 | (646) | (1,281) | (1,785) |
Loss for the period attributable to the owners of the parent | (3,061) | (3,154) | (5,460) | (22,189) | (10,085) |
Items that will or may be reclassified subsequently to profit or loss: | |||||
Total other comprehensive gain net of tax | 508 | (207) | |||
Total comprehensive loss attributable to the owners of the parent | £ (3,061) | £ (3,154) | £ (5,460) | £ (21,681) | £ (10,292) |
Loss per share | |||||
Basic and diluted loss per ordinary share - pence | £ (3) | £ (5) | £ (7,000) | £ (52,000) | £ (50,000) |
Consolidated Statements of Fina
Consolidated Statements of Financial Position (Unaudited) - GBP (£) £ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Non-current assets | ||||||
Property, plant and equipment | £ 993 | £ 1,152 | £ 542 | £ 2,154 | ||
Total Non-Current Assets | 993 | 1,152 | 542 | 17,158 | ||
Current assets | ||||||
Trade and other receivables | 1,243 | 1,034 | 572 | 992 | ||
Taxation | 1,023 | 670 | 1,157 | 1,817 | ||
Cash and cash equivalents | 6,423 | 10,057 | £ 4,204 | 7,546 | 10,928 | £ 2,343 |
Total Current Assets | 8,689 | 11,761 | 9,275 | 13,737 | ||
Total assets | 9,682 | 12,913 | 9,817 | 30,895 | ||
Non-current liabilities | ||||||
Borrowings | 546 | 620 | 60 | 5,670 | ||
Total Non-Current Liabilities | 546 | 620 | 110 | 5,670 | ||
Current liabilities | ||||||
Trade and other payables | 1,280 | 1,092 | 1,230 | 4,494 | ||
Borrowings | 167 | 146 | 200 | 412 | ||
Provisions | 43 | 50 | 97 | |||
Derivative financial liability | 155 | 553 | 1,559 | 664 | ||
Total current Liabilities | 1,645 | 1,841 | 2,989 | 5,667 | ||
Total liabilities | 2,191 | 2,461 | 3,099 | 11,337 | ||
Issued capital and reserves attributable to owners of the parent | ||||||
Share capital | 1,098 | 1,098 | 1,063 | 1,023 | ||
Share premium | 83,434 | 83,434 | 74,364 | 65,879 | ||
Merger reserve | 53,003 | 53,003 | 53,003 | 53,003 | ||
Warrant reserve | 720 | 720 | 720 | |||
Accumulated deficit | (130,764) | (127,803) | (122,432) | (99,839) | ||
Total equity | 7,491 | 10,452 | £ 3,752 | 6,718 | 19,558 | £ 16,924 |
Total equity and liabilities | £ 9,682 | £ 12,913 | £ 9,817 | £ 30,895 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - GBP (£) £ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities | ||
Loss for the period | £ (3,061) | £ (3,154) |
Adjustments for: | ||
Depreciation of property, plant and equipment | 96 | 117 |
Depreciation of right of use asset | 86 | 62 |
(Profit)/Loss on disposal of fixed assets | 2 | (42) |
Finance income | (404) | |
Finance expense | 24 | 156 |
Share-based payment expense/(credit) | 100 | 37 |
Taxation | (337) | (236) |
Foreign exchange (gains)/losses | (3) | |
Cash flows from operating activities before changes in working capital | (3,494) | (3,063) |
Increase in trade and other receivables | (224) | (859) |
Increase in trade and other payables | 187 | 814 |
Decrease in provisions | (8) | |
Cash used in operations | (3,539) | (3,108) |
Taxes payments | ||
Net cash used in operating activities | (3,539) | (3,108) |
Investing activities | ||
Purchases of property, plant and equipment | (33) | (189) |
Proceeds from disposal of fixed assets | 9 | 42 |
Interest received | 7 | |
Net cash used in investing activities | (17) | (147) |
Financing activities | ||
Interest paid | (5) | (11) |
Amounts paid on lease liabilities | (73) | (47) |
Repayment of Government loan | (104) | |
Share issues including warrants, net of costs | 81 | |
Net cash used in financing activities | (78) | (81) |
Net decrease in cash and cash equivalents | (3,634) | (3,336) |
Cash and cash equivalents at beginning of period | 10,057 | 7,546 |
Exchange (losses)/gains on cash and cash equivalents | (6) | |
Cash and cash equivalents at end of period | £ 6,423 | £ 4,204 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (unaudited) - GBP (£) £ in Thousands | Share Capital [Member] | Share premium [member] | Merger reserve [member] | Warrant reserve [member] | Foreign Exchange Reserve [Member] | Retained earnings [member] | Total |
At 1 January 2021 at Dec. 31, 2018 | £ 1,003 | £ 52,939 | £ 53,003 | £ (301) | £ (89,720) | £ 16,924 | |
IfrsStatementLineItems [Line Items] | |||||||
Loss for the period | (10,085) | (10,085) | |||||
Total comprehensive loss | (207) | (10,085) | (10,292) | ||||
Transactions with owners: | |||||||
Share-based payment charge | (34) | (34) | |||||
Total contribution by and distributions to owners | 20 | 12,940 | (34) | 12,926 | |||
At 30 June 2021 at Dec. 31, 2019 | 1,023 | 65,879 | 53,003 | (508) | (99,839) | 19,558 | |
IfrsStatementLineItems [Line Items] | |||||||
Loss for the period | (22,189) | (22,189) | |||||
Total comprehensive loss | (508) | (22,189) | (21,681) | ||||
Transactions with owners: | |||||||
Costs associated with share issue on 16 February 2021 | (489) | (489) | |||||
Share-based payment charge | (404) | (404) | |||||
Total contribution by and distributions to owners | 40 | 8,485 | 720 | (404) | 8,841 | ||
At 30 June 2021 at Dec. 31, 2020 | 1,063 | 74,364 | 53,003 | 720 | (122,432) | 6,718 | |
IfrsStatementLineItems [Line Items] | |||||||
Loss for the period | (3,154) | (3,154) | |||||
Total comprehensive loss | (3,154) | (3,154) | |||||
Transactions with owners: | |||||||
Exercise of warrants on 16 February 2021 | 161 | 161 | |||||
Costs associated with share issue on 16 February 2021 | (10) | (10) | |||||
Share-based payment charge | 37 | 37 | |||||
Total contribution by and distributions to owners | 151 | 37 | 188 | ||||
At 30 June 2021 at Jun. 30, 2021 | 1,063 | 74,515 | 53,003 | 720 | (125,549) | 3,752 | |
At 1 January 2021 at Dec. 31, 2020 | 1,063 | 74,364 | 53,003 | 720 | (122,432) | 6,718 | |
IfrsStatementLineItems [Line Items] | |||||||
Loss for the period | (5,460) | (5,460) | |||||
Total comprehensive loss | (5,460) | (5,460) | |||||
Transactions with owners: | |||||||
Costs associated with share issue on 16 February 2021 | (1,046) | (1,046) | |||||
Shares issued on 3 May 2022 | 35 | 9,965 | 10,000 | ||||
Share-based payment charge | 89 | 89 | |||||
Total contribution by and distributions to owners | 35 | 9,070 | 89 | 9,194 | |||
At 30 June 2021 at Dec. 31, 2021 | 1,098 | 83,434 | 53,003 | 720 | (127,803) | 10,452 | |
IfrsStatementLineItems [Line Items] | |||||||
Loss for the period | (3,061) | (3,061) | |||||
Total comprehensive loss | (3,061) | (3,061) | |||||
Transactions with owners: | |||||||
Exercise of warrants on 16 February 2021 | |||||||
Shares issued on 3 May 2022 | |||||||
Share-based payment charge | 100 | 100 | |||||
Total contribution by and distributions to owners | 100 | 100 | |||||
At 30 June 2021 at Jun. 30, 2022 | £ 1,098 | £ 83,434 | £ 53,003 | £ 720 | £ (130,764) | £ 7,491 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Profit or loss [abstract] | |||
Revenue | £ 578 | £ 180 | £ 312 |
Grant revenue | 163 | 362 | |
Total revenue | 578 | 343 | 674 |
Other income | 24 | 12 | 15 |
Research and development costs | (4,654) | (6,068) | (7,843) |
Distribution costs, sales and marketing | (323) | ||
Administrative costs | (2,946) | (4,958) | (3,841) |
Impairment of intangible assets | (12,369) | ||
Loss from operations | (6,998) | (23,040) | (11,318) |
Finance income | 936 | 1 | 492 |
Finance expense | (44) | (431) | (97) |
Loss before tax | (6,106) | (23,470) | (10,923) |
Taxation | 646 | 1,281 | 1,785 |
Loss from continuing operations | (5,460) | (22,189) | (9,138) |
Loss from discontinued operations net of tax | (947) | ||
Loss for the period attributable to the owners of the parent | (5,460) | (22,189) | (10,085) |
Items that will or may be reclassified subsequently to profit or loss: | |||
Exchange gains/(losses) arising on translation of foreign operations | 508 | (207) | |
Total other comprehensive income/(loss ) net of tax | 508 | (207) | |
Total comprehensive loss attributable to the owners of the parent | £ (5,460) | £ (21,681) | £ (10,292) |
Loss per share | |||
Basic and diluted loss per ordinary share - pence | £ (7,000) | £ (52,000) | £ (50,000) |
Basic and diluted loss per ordinary share - pence | £ (5,000) |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - GBP (£) £ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Non-current assets | |||
Property, plant and equipment | £ 1,152 | £ 542 | £ 2,154 |
Intangible assets | 12,379 | ||
Other receivables due in greater than one year | 2,625 | ||
Total Non-Current Assets | 1,152 | 542 | 17,158 |
Current assets | |||
Trade and other receivables | 1,034 | 572 | 992 |
Taxation | 670 | 1,157 | 1,817 |
Cash and cash equivalents | 10,057 | 7,546 | 10,928 |
Total Current Assets | 11,761 | 9,275 | 13,737 |
Total assets | 12,913 | 9,817 | 30,895 |
Non-current liabilities | |||
Borrowings | 620 | 60 | 5,670 |
Provisions | 50 | ||
Total Non-Current Liabilities | 620 | 110 | 5,670 |
Current liabilities | |||
Trade and other payables | 1,092 | 1,230 | 4,494 |
Borrowings | 146 | 200 | 412 |
Provisions | 50 | 97 | |
Derivative financial liability | 553 | 1,559 | 664 |
Total current Liabilities | 1,841 | 2,989 | 5,667 |
Total liabilities | 2,461 | 3,099 | 11,337 |
Issued capital and reserves attributable to owners of the parent | |||
Share capital | 1,098 | 1,063 | 1,023 |
Share premium | 83,434 | 74,364 | 65,879 |
Merger reserve | 53,003 | 53,003 | 53,003 |
Warrant reserve | 720 | 720 | |
Foreign exchange reserve | (508) | ||
Accumulated deficit | (127,803) | (122,432) | (99,839) |
Total equity | 10,452 | 6,718 | 19,558 |
Total equity and liabilities | £ 12,913 | £ 9,817 | £ 30,895 |
CONSOLDATED STATEMENTS OF CASH
CONSOLDATED STATEMENTS OF CASH FLOWS - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Loss for the year | £ (5,460) | £ (22,189) | £ (10,085) |
Adjustments for: | |||
Depreciation of property, plant and equipment | 213 | 1,089 | 979 |
Depreciation of right of use asset | 190 | 118 | 303 |
Amortisation of intangible fixed assets | 10 | 3 | |
Profit on disposal of fixed assets | (39) | (226) | |
Impairment of intangible assets | 12,369 | ||
Finance income | (936) | (1) | (492) |
Finance expense | 44 | 431 | 97 |
Share-based payment charge/(credit) | 89 | (404) | (34) |
Taxation | (646) | (1,281) | (1,785) |
Loss from discontinued operations, net of tax | 947 | ||
Foreign exchange (gains)/losses | (3) | 387 | (140) |
Cash flows from operating activities before changes in working capital | (6,548) | (9,697) | (10,207) |
Decrease in trade and other receivables | (487) | 493 | 725 |
(Decrease)/Increase in trade and other payables | (130) | (2,004) | 1,141 |
Decrease in provisions | (47) | (68) | |
Cash used in operations | (7,165) | (11,255) | (8,409) |
Taxes received | 1,157 | 1,954 | 1,920 |
Net cash used in operating activities | (6,008) | (9,301) | (6,489) |
Investing activities | |||
Purchases of property, plant and equipment | (320) | (209) | (310) |
Proceeds from disposal of fixed assets | 42 | 143 | |
Purchase of intangibles | (9) | ||
Long term deposit for guarantee for Government loan | 2,639 | (2,549) | |
Deposit paid in connection with disposed subsidiary | (947) | ||
Interest received | 1 | 8 | |
Net cash used in investing activities | (278) | 2,574 | (3,807) |
Financing activities | |||
Interest paid | (15) | (34) | (30) |
Receipts from sub-lessee on onerous lease | 45 | 107 | |
Amounts paid on lease liabilities | (112) | (258) | (450) |
Repayment of Government grants on closure of Spanish operation | (229) | ||
Repayment of borrowings | (577) | ||
(Repayment)/Proceeds from Government loan | (103) | (6,182) | 4,436 |
Proceeds from Government subsidy | 1,139 | ||
Share issues including warrants, net of costs | 9,035 | 9,742 | 14,108 |
Net cash used in financing activities | 8,805 | 3,084 | 18,733 |
Net increase/(decrease) in cash and cash equivalents | 2,519 | (3,643) | 8,437 |
Cash and cash equivalents at beginning of period | 7,546 | 10,928 | 2,343 |
Exchange (losses)/gains on cash and cash equivalents | (8) | 261 | 148 |
Cash and cash equivalents at end of period | £ 10,057 | £ 7,546 | £ 10,928 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - GBP (£) £ in Thousands | Share Capital [Member] | Share premium [member] | Merger reserve [member] | Warrant reserve [member] | Foreign Exchange Reserve [Member] | Retained earnings [member] | Total |
At 1 January 2021 at Dec. 31, 2018 | £ 1,003 | £ 52,939 | £ 53,003 | £ (301) | £ (89,720) | £ 16,924 | |
IfrsStatementLineItems [Line Items] | |||||||
Loss for the year | (10,085) | (10,085) | |||||
Foreign exchange translation | (207) | (207) | |||||
Total comprehensive loss | (207) | (10,085) | (10,292) | ||||
Transactions with owners | |||||||
Share-based payment credit | (34) | (34) | |||||
Total contribution by and distributions to owners | 20 | 12,940 | (34) | 12,926 | |||
Shares issued on 26 February 2019 – note 16 | 17 | 13,388 | 13,405 | ||||
Costs associated with share issue on 26 February 2019 – note 16 | (1,120) | (1,120) | |||||
Shares issued on 29 October 2019 – note 16 | 3 | 1,211 | 1,214 | ||||
Costs associated with share issue on 29 October 2019 – note 16 | (539) | (539) | |||||
At 30 June 2021 at Dec. 31, 2019 | 1,023 | 65,879 | 53,003 | (508) | (99,839) | 19,558 | |
IfrsStatementLineItems [Line Items] | |||||||
Loss for the year | (22,189) | (22,189) | |||||
Foreign exchange translation | 508 | 508 | |||||
Total comprehensive loss | (508) | (22,189) | (21,681) | ||||
Transactions with owners | |||||||
Costs associated with share issue on 27 July 2020 – notes 16, 23 | (489) | (489) | |||||
Share-based payment credit | (404) | (404) | |||||
Total contribution by and distributions to owners | 40 | 8,485 | 720 | (404) | 8,841 | ||
Shares issued on 26 February 2019 – note 16 | 16 | 2,527 | 720 | 3,263 | |||
Costs associated with share issue on 26 February 2019 – note 16 | (544) | (544) | |||||
Shares issued on 27 July 2020 – notes 16, 23 | 21 | 5,729 | 5,750 | ||||
Shares issued on 29 October 2019 – note 16 | 3 | 1,278 | 1,281 | ||||
Costs associated with share issue on 29 October 2019 – note 16 | (16) | (16) | |||||
At 30 June 2021 at Dec. 31, 2020 | 1,063 | 74,364 | 53,003 | 720 | (122,432) | 6,718 | |
IfrsStatementLineItems [Line Items] | |||||||
Loss for the year | (3,154) | (3,154) | |||||
Total comprehensive loss | (3,154) | (3,154) | |||||
Transactions with owners | |||||||
Costs associated with share issue on 27 July 2020 – notes 16, 23 | (10) | (10) | |||||
Share-based payment credit | 37 | 37 | |||||
Total contribution by and distributions to owners | 151 | 37 | 188 | ||||
At 30 June 2021 at Jun. 30, 2021 | 1,063 | 74,515 | 53,003 | 720 | (125,549) | 3,752 | |
At 1 January 2021 at Dec. 31, 2020 | 1,063 | 74,364 | 53,003 | 720 | (122,432) | 6,718 | |
IfrsStatementLineItems [Line Items] | |||||||
Loss for the year | (5,460) | (5,460) | |||||
Foreign exchange translation | |||||||
Total comprehensive loss | (5,460) | (5,460) | |||||
Transactions with owners | |||||||
Shares issued on 19 February 2021 – notes 16, 23 | 161 | 161 | |||||
Costs associated with share issue on 19 February 2021 – notes 16, 23 | (10) | (10) | |||||
Shares issued on 6 July 2021 – notes 16,23 | 35 | 9,965 | 10,000 | ||||
Costs associated with share issue on 27 July 2020 – notes 16, 23 | (1,046) | (1,046) | |||||
Share-based payment credit | 89 | 89 | |||||
Total contribution by and distributions to owners | 35 | 9,070 | 89 | 9,194 | |||
At 30 June 2021 at Dec. 31, 2021 | 1,098 | 83,434 | 53,003 | 720 | (127,803) | 10,452 | |
IfrsStatementLineItems [Line Items] | |||||||
Loss for the year | (3,061) | (3,061) | |||||
Total comprehensive loss | (3,061) | (3,061) | |||||
Transactions with owners | |||||||
Shares issued on 6 July 2021 – notes 16,23 | |||||||
Share-based payment credit | 100 | 100 | |||||
Total contribution by and distributions to owners | 100 | 100 | |||||
At 30 June 2021 at Jun. 30, 2022 | £ 1,098 | £ 83,434 | £ 53,003 | £ 720 | £ (130,764) | £ 7,491 |
Basis of preparation
Basis of preparation | 6 Months Ended |
Jun. 30, 2022 | |
Basis Of Preparation | |
Basis of preparation | 1. Basis of preparation The unaudited interim consolidated financial information for the six months ended 30 June 2022 has been prepared following the recognition and measurement principles of the International Financial Reporting Standards, International Accounting Standards and Interpretations (collectively IFRS) issued by the International Accounting Standards Board (IASB), and as adopted by the UK and in accordance with International Accounting Standard 34 Interim Financial Reporting (‘IAS 34’). The interim consolidated financial information does not include all the information and disclosures required in the annual financial information and should be read in conjunction with the audited financial statements for the year ended 31 December 2021. The condensed interim financial information contained in this interim statement does not constitute statutory financial statements as defined by section 434(3) of the Companies Act 2006. The condensed interim financial information has not been audited. The comparative financial information for the six months ended 30 June 2021 and the year ended 31 December 2021 in this interim financial information does not constitute statutory accounts for that year. The statutory accounts for 31 December 2021 have been delivered to the UK Registrar of Companies. The auditor’s report on those accounts was unqualified and did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006. The auditor’s report did draw attention to a material uncertainty related to going concern and the requirement, as of the date of the report, for additional funding to be raised by the Company by the first quarter of 2023. Midatech Pharma’s annual reports may be downloaded from the Company’s website at https://www.midatechpharma.com/investors/financial-reports-accounts or a copy may be obtained from 1 Caspian Point, Caspian Way, Cardiff CF10 4DQ. Going Concern Midatech has experienced net losses and significant cash outflows from cash used in operating activities over the past years as it has developed its portfolio. As at 30 June 2022 the Group had total equity of £7.49m 7,491 10,452 3,061 3,154 3,539 3,108 6,423 The Group’s future viability is dependent on its ability to raise cash from financing activities to finance its development plans until commercialisation, generate cash from operating activities and to successfully obtain regulatory approval to allow marketing of its development products. The group’s failure to raise capital as and when needed could have a negative impact on its financial condition and ability to pursue its business strategies. The Directors have prepared cash flow forecasts and considered the cash flow requirement for the Company for the next three years including the period 12 months from the date of approval of this interim financial information. These forecasts show that further financing will be required during the first quarter of 2023 assuming, inter alia, that certain developments programs and other operating activities continue as currently planned. This requirement for additional financing in the short term represents a material uncertainty that may cast doubt upon the Group and Parent Company’s ability to continue as a going concern. The Directors are evaluating a number of near-term funding options potentially available to the Group, including fundraising and the partnering of assets and technologies of the Company. After considering the uncertainties, the Directors consider it is appropriate to continue to adopt the going concern basis in preparing these financial statements. |
Finance income and expense
Finance income and expense | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Finance income and expense | 2. Finance income and expense Schedule of finance income Six months unaudited £’000 Six months unaudited £’000 Finance income Interest received on bank deposits 6 - Gain on equity settled derivative financial liability 398 - Total finance income 404 - The gain on the equity settled derivative financial liability in 2022 arose as a result of the reduction in the Midatech share price. Six months unaudited £’000 Six months unaudited £’000 Finance expense Interest expense on lease liabilities 24 13 Other loans - 9 Loss on equity settled derivative financial liability - 134 Total finance expense 24 156 The loss on the equity settled derivative financial liability in 2021 arose as a result of the increase in the Midatech share price. | 7 Finance income and expense Schedule of finance income 2021 £’000 2020 £’000 2019 £’000 Finance income Interest received on bank deposits – 1 8 Gain on equity settled derivative financial liability 936 – 484 Total finance income 936 1 492 2021 £’000 2020 £’000 2019 £’000 Finance expense Interest expense on lease liabilities 36 20 30 Other loans 8 14 67 Loss on equity settled derivative financial liability – 397 – Total finance expense 44 431 97 The gain/(loss) on the equity settled derivative financial liability in 2021, 2020 and 2019 arose as a result of the movement in share price (note 20). |
Taxation
Taxation | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Taxation | 3. Taxation Income tax is recognised or provided at amounts expected to be recovered or to be paid using the tax rates and tax laws that have been enacted or substantively enacted at the Group Statement of Financial Position date. Research and development tax credits are recognised on an accruals basis and are included as an income tax credit under current assets. The research and development tax credit recognised is based on management’s estimate of the expected tax claim for the period and is recorded within taxation under the Small and Medium-sized Enterprise Scheme. Schedule of components of income tax expense (benefit) Six months unaudited £’000 Six months unaudited £’000 Income tax credit 337 236 | 8 Taxation Schedule of components of income tax expense (benefit) 2021 £’000 2020 £’000 2019 £’000 Current tax credit Current tax credited to the income statement 646 1,144 1,782 Taxation payable in respect of foreign subsidiary – (21 ) – Adjustment in respect of prior year – 158 3 Total current tax credit 646 1,281 1,785 Deferred tax credit Reversal of temporary differences – – – Total tax credit 646 1,281 1,785 There was no tax charge relating to discontinued operations for 2021, 2020 and 2019. The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the United Kingdom applied to losses for the year are as follows: Schedule of difference between actual tax charge and the standard rate of corporation tax 2021 £’000 2020 £’000 2019 £’000 Loss before tax (6,106 ) (23,470 ) (11,870 ) Expected tax credit based on the standard rate of United Kingdom (1,160 ) (4,459 ) (2,255 ) Expenses not deductible for tax purposes 75 596 1,087 Income not taxable (2 ) (75 ) – Unrelieved tax losses and other deductions – – (114 ) Adjustment in respect of prior period – (158 ) (3 ) Surrender of tax losses for R&D tax refund (280 ) (491 ) (1,810 ) Foreign exchange differences – 1 Deferred tax not recognised 721 3,306 1,309 Total tax credited to the income statement (646 ) (1,281 ) (1,785 ) The taxation credit arises on the enhanced research and development tax credits accrued for the respective periods. An adjustment has been recognised in 2020 in respect of the prior period of £158k, this is as a result of a more detailed review of cost classification prior to the submission of tax returns to HMRC in 2020. |
Loss per share
Loss per share | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Loss per share | 4. Loss per share Basic loss per share amounts are calculated by dividing the net loss for the period from continuing operations, attributable to ordinary equity holders of the parent company, by the weighted average number of ordinary shares outstanding during the period. As the Group made a loss for the period the diluted loss per share is equal to the basic loss per share. Schedule of loss per share Six months unaudited £’000 Six months unaudited £’000 Numerator Loss used in basic EPS and diluted EPS: (3,061 ) (3,154 ) Denominator Weighted average number of ordinary shares used in basic and diluted EPS: 98,476,551 63,296,377 Basic and diluted loss per share: (3 )p (5 )p The Group has made a loss in the current and previous years presented, and therefore the options and warrants are anti-dilutive. As a result, diluted earnings per share is presented on the same basis for all periods shown. | 9 Loss per share Schedule of loss per share 2021 £’000 2020 £’000 2019 £’000 Numerator Loss used in basic EPS and diluted EPS: Continuing operations (5,460 ) (22,189 ) (9,138 ) Discontinued operations – – (947 ) Denominator Weighted average number of ordinary shares used in basic EPS: 80,546,881 42,839,961 18,330,588 Basic and diluted loss per share: Continuing operations – pence (7 )p (52 )p (50 )p Discontinued operations – pence – – (5 )p On 2 March 2020 a resolution was passed at a general meeting of shareholders of the Company to consolidate its ordinary shares on a one for 20 basis into new ordinary shares of 0.1p each in the capital of the Company. The comparative denominator has been calculated to reflect the share consolidation. The Group has made a loss in the current and previous years presented, and therefore the options and warrants are anti-dilutive. As a result, diluted earnings per share is presented on the same basis for all periods shown. |
Borrowings
Borrowings | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Borrowings | 5. Borrowings Schedule of borrowings As at 30 £’000 As at 31 £’000 Current Lease liabilities 167 146 Total 167 146 Non-current Lease liabilities 546 620 Total 546 620 Book values approximate to fair value at 30 June 2022 and 31 December 2021. Obligations under finance leases are secured by a fixed charge over the fixed assets to which they relate. | 18 Borrowings Schedule of borrowings 2021 £’000 2020 £’000 2019 £’000 Current Lease liabilities 146 93 233 Government and research loans – 107 179 Total 146 200 412 Non-current Lease liabilities 620 60 912 Government and research loans – – 4,758 Total 620 60 5,670 During 2021 a euro denominated government and research loan of £103k (2020: £6.2m) was repaid. This amount includes £ nil (2020: £1.2m) of government grants, which is included in the amounts disclosed in note 17. This amount translated at year end rate was £107k (2020: £4.8m). Book values approximate to fair value at 31 December 2021, 2020 and 2019. Obligations under finance leases are secured by a fixed charge over the fixed assets to which they relate. Government loans in Spain MPE previously had four Spanish government loans, three were repaid in 2020 with the final loan repaid in February 2021 prior to the liquidation of MPE. Three of the loans were provided for the finance of research, technical innovation and the construction of their laboratory. The loan were term loans which carried an interest rate below the market rate and were repayable over periods through to 2024. As a result of the Group’s decision on 31 March 2020 to terminate further in-house development of MTD201 and the subsequent closure of its dedicated manufacturing facilities in Bilbao two of these loans were repaid in 2020, with the final loan being repaid in 2021. The fourth loan received by MPE in September 2019 for € 6.6 2.9 million The loans carried default interest rates in the event of scheduled repayments not being met. On initial recognition, the loans are discounted at a market rate of interest with the credit being classified as a grant within deferred revenue. The deferred grant revenue is released to the consolidated statement of comprehensive income within research and development costs in the period to which the expenditure is recognised. The deferred revenue element of the government loans is designated within note 17 as deferred revenue and Government grants, the gross contractual repayment of the loans is disclosed in note 21. As a result of the repayment of the loans these were fully amortised during 2020. |
Provision
Provision | 6 Months Ended |
Jun. 30, 2022 | |
Provision | |
Provision | 6. Provision Schedule of provisions As at 30 £’000 As at 31 £’000 Opening provision at 1 January 50 50 Provision released during the period (7 ) - 43 50 The provision relates to the ‘making good’ clause on the Cardiff office which was vacated during the fourth quarter of 2021. Management reached agreement with the landlord; this was settled in July 2022. The provision as at 31 December 2021 was managements best estimate. |
Derivative financial liability
Derivative financial liability – current | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Derivative Financial Liability Current | ||
Derivative financial liability – current | 7. Derivative financial liability – current Schedule of derivative financial liability As at 30 £’000 As at 31 £’000 At 1 January 553 1,559 Transfer to share premium on exercise of warrants - (70 ) Gain recognised in finance income within the consolidated statement of comprehensive income (398 ) (936 ) 155 553 Equity settled derivative financial liability is a liability that is not to be settled for cash. On 16 February 2021 306,815 pre-existing warrants were exercised at $0.41. The gross proceeds received by the company was $126,561. The fair value of the warrants on the date of exercise was £70,339. May 2020 warrants In May 2020 the Company issued 9,545,456 2.05 2.0625 October 2019 warrants In October 2019 the Company issued 3,150,000 6.25 DARA warrants and share options The Group also assumed fully vested warrants and share options on the acquisition of DARA Biosciences, Inc. (which took place in 2015). The number of ordinary shares to be issued when exercised is fixed, however the exercise prices are denominated in US Dollars. The warrants are classified equity settled derivative financial liabilities and accounted for in the same way as those detailed above. The financial liability is valued using the Black-Scholes option pricing model. The exercise price of the warrants and options is $61.03 and $95.17 respectively. The following table details the outstanding warrants as at 30 June 2022, 31 December 2021 and also the movement in the period: Schedule of warrants outstanding At 1 Lapsed Exercised At 31 Lapsed Exercised At 30 June May 2020 grant 7,045,456 – (306,815) 6,738,641 – – 6,738,641 October 2019 grant 3,150,000 – – 3,150,000 – – 3,150,000 DARA Warrants 4,624 (544) – 4,080 – – 4,080 DARA Options 2,835 – – 2,835 (13) – 2,822 Fair value hierarchy The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: Level 1: quoted (unadjusted) prices in active markets for identical assets and liabilities; Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly; and Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data. The fair value of the Group’s derivative financial liability is measured at fair value on a recurring basis. The following table gives information about how the fair value of this financial liability is determined. Schedule of consolidated financial assets and liabilities at fair value Financial Fair value as at 30 June 2022 Fair value as 2021 Fair value Valuation Significant unobservable input(s) Relationship of unobservable Equity settled financial derivative liability – May 2020 Warrants £146,000 £467,000 Level 3 Monte Carlo simulation model Volatility rate of 105% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 3.39 years determined using the remaining life of the share options. The shorter the expected life the lower the fair value. Risk-free rate between a range of 1.68% determined using the expected life assumptions. The higher the risk-free rate the higher the fair value. Equity settled financial derivative liability – October 2019 Warrants £9,000 £86,000 Level 3 Monte Carlo simulation model Volatility rate of 108.5% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 3.00 years determined using the remaining life of the share options. The shorter the expected life the lower the fair value. Risk-free rate between a range of 1.68% determined using the expected life assumptions. The higher the risk-free rate the higher the fair value. Equity settled financial derivative liability – DARA Bioscience warrants and options – – Level 3 Black-Scholes option pricing model Volatility rate of 108.5%% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 0.4 years determined using the remaining life of the share options The shorter the expected life the lower the fair value. Risk-free rate between a range of 1.68% determined using the expected life assumptions. The higher the risk-free rate the higher the fair value. Total £155,000 £553,000 Changing the unobservable risk free rate input to the valuation model by 10% higher while all other variables were held constant, would not impact the carrying amount of shares (2021: nil). There were no transfers between Level 1 and 2 in the period. The financial liability measured at fair value on Level 3 fair value measurement represents consideration relating to warrants issued in May 2020 and October 2019 as part of Registered Direct offerings and also a business combination. | |
Derivative financial liability – current | 20 Derivative financial liability – current Schedule of derivative financial liability 2021 £’000 2020 £’000 2019 £’000 Equity settled derivative financial liability At 1 January 1,559 664 – Warrants issued – 997 1,148 Transfer to share premium on exercise of warrants (70 ) (499 ) – Gain recognised in finance income within the consolidated statement (936 ) 397 (484 ) At 31 December 553 1,559 664 Equity settled derivative financial liability is a liability that is not to be settled for cash. May 2020 warrants In May 2020 the Company issued 9,545,456 warrants in the ordinary share capital of the Company as part of a registered direct offering in the US. The number of ordinary shares to be issued when exercised is fixed, however the exercise price is denominated in US Dollars being different to the functional currency of the Company. Therefore, the warrants are classified as equity settled derivative financial liabilities recognised at fair value through the profit and loss account (‘FVTPL’). The financial liability is valued using the Monte Carlo model. Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on re-measurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability and is included in the ‘finance income’ or ‘finance expense’ lines item in the income statement. Fair value is determined in the manner described in note 21. A key input in the valuation of the instrument is the Company share price. Exercise price per ADR is $ 2.05 and $ 2.0625 . October 2019 warrants In October 2019 the Company issued 3,150,000 6.25 DARA warrants and share options The Group also assumed fully vested warrants and share options on the acquisition of DARA Biosciences, Inc. (which took place in 2015). The number of ordinary shares to be issued when exercised is fixed, however the exercise prices are denominated in US Dollars. The warrants are classified equity settled derivative financial liabilities and accounted for in the same way as those detailed above. The financial liability is valued using the Black-Scholes option pricing model. The exercise price of the warrants and options is $61.03 and $95.17 respectively. The following table details the outstanding warrants as at 31 December and also the movement in the year: At 1 Granted Lapsed At 31 Granted Exercised At 31 Lapsed Exercised At 31 May – – – – 7,545,456 (2,500,000 ) 7,045,456 – (306,815 ) 6,738,641 October – 3,150,000 – 3,150,000 – – 3,150,000 – – 3,150,000 DARA Warrants 116,206 – (111,582 ) 4,624 – – 4,624 (544 ) – 4,080 DARA 6,167 – (3,332 ) 2,835 – – 2,835 – – 2,835 |
Share capital
Share capital | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Share capital | 8. Share capital Schedule of detailed information about share capital Authorised, allotted and As at 30 June Number As at 30 June £ As at 31 Number As at 31 £ Ordinary shares of 98,493,413 98,493 98,468,387 98,468 Deferred shares of £1 each 1,000,001 1,000,001 1,000,001 1,000,001 Total 1,098,494 1,098,469 Ordinary and deferred shares were recorded as equity. Schedule Of Ordinary and Deferred Shares 2022 Ordinary Number Deferred Number Share £ Total £’000 At 1 January 2022 98,468,387 1,000,001 106,517 22 March 2022 Exercise of warrants 26 – 10.000 – 3 May 2022 Share issue to SIPP trustee* 25,000 – 0.001 – At 30 June 2022 (unaudited) 98,493,413 1,000,001 106,517 2021 At 1 January 2021 63,073,852 1,000,001 96,426 19 February 2021 Exercise of warrants 306,815 – 0.298 91 6 July 2021 Placing 35,087,720 – 0.285 10,000 At 31 December 2021 98,468,387 1,000,001 106,517 * Share issued to Midatech Pharma Plc employee benefit trust | 23 Share capital Schedule of detailed information about share capital Authorised, allotted and fully 2021 Number 2021 £ 2020 Number 2020 £ 2019 Number 2019 £ At 31 December Ordinary shares of 98,468,387 98,468 63,073,852 63,074 23,494,981 23,495 Deferred shares of £1 each 1,000,001 1,000,001 1,000,001 1,000,001 1,000,001 1,000,001 Total 1,098,469 1,063,075 1,023,496 On 2 March 2020 a resolution was passed at a general meeting of shareholders of the Company to consolidate its ordinary shares on a one for 20 basis into new ordinary shares of 0.1p each in the capital of the Company. The above table reflects the share consolidation in the comparative figures. In accordance with the Articles of Association for the Company adopted on 13 November 2014, the share capital of the Company consists of an unlimited number of ordinary shares of nominal value £0.001 each. Ordinary and deferred shares were recorded as equity. Rights attaching to the shares following the incorporation of Midatech Pharma plc Shares classified as equity The holders of ordinary shares in the capital of the Company have the following rights: (a) to receive notice of, to attend and to vote at all general meetings of the Company, in which case shareholders shall have one vote for each share of which he is the holder; and, (b) to receive such dividend as is declared by the Board on each share held. The holders of deferred shares in the capital of the Company: (a) shall not be entitled to receive notice of or to attend or speak at any general meeting of the Company or to vote on any resolution to be proposed at any general meeting of the Company; and (b) shall not be entitled to receive any dividend or other distribution of out of the profits of the Company. In the event of a distribution of assets, the deferred shareholders shall receive the nominal amount paid up on such share after the holder of each ordinary share shall have received (in cash or specie) the amount paid up or credited as paid up on such ordinary share together with an additional payment of £100 per share. The Company has the authority to purchase the deferred shares and may require the holder of the deferred shares to sell them for a price not exceeding 1p for all the deferred shares. Schedule Of Ordinary and Deferred Shares Ordinary Shares Number Deferred Shares Number Share £ Total £’000 At 1 January 2019 3,059,207 1,000,001 69,870 2019 26 February 2019 Subscription, Placing and Open Offer 17,410,774 0.77 13,406 8 October 2019 Share issue to SIPP trustee (see note 26) 25,000 0.001 – 29 October 2019 Registered Direct Offering 3,000,000 0.7874 2,362 At 31 December 2019 23,494,981 1,000,001 85,638 2020 18 May 2020 Placing & Registered Direct Offering 15,757,576 0.27 4,255 27 July 2020 Placing 21,296,295 0.27 5,750 19 August 2020 Exercise of warrants 2,500,000 783 30 September 2020 Share issue to SIPP trustee (see note 26) 25,000 0.001 – At 31 December 2020 63,073,852 1,000,001 96,426 19 February 2021 Exercise of warrants 306,815 0.298 91 6 July 2021 Placing 35,087,720 0.285 10,000 At 31 December 2021 98,468,387 1,000,001 106,517 |
Related party transaction
Related party transaction | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Related party transaction | 9. Related party transaction The Directors consider there to be no related party transactions during the periods reported other than Directors Remuneration. | 28 Related party transactions Trading Transactions The Directors consider BioConnection BV to be a related party by virtue of the fact that there is a common Director with the Company and the Director is identified as having significant influence over the entity. 2019 was the first year where this relationship existed. During the year Group companies entered into the following transactions with related parties who are not members of the Group. Schedule of related party transactions Purchase of good Amounts owed by related parties 2021 €’000 2020 €’000 2019 €’000 2021 €’000 2020 €£’000 2019 €’000 BioConnection BV – 296 18 – – 8 During 2019 Midatech Pharma (Espana) SL entered into a commercial contract with BioConnection BV in connection with the Group’s MTD201 program, this contract was subsequently terminated in 2020 as a result of the termination of the program. The Group has not made any allowances for bad or doubtful debts in respect of related party debtors nor has any guarantee been given or received during 2021,2020 or 2019 regarding related party transactions. |
Contingent liabilities
Contingent liabilities | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Contingent liabilities | 10. Contingent liabilities The Group had no contingent liabilities as at 30 June 2022 (30 June 2021: Nil). | 29 Contingent liabilities As at 31 December 2019 the Group was party to a claim by the estate of a former employee for unfair dismissal. The claim comprised various elements totalling € 258,000 190,000 The Group had no contingent liabilities at 31 December 2021 and 31 December 2020. |
Accounting policies
Accounting policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting policies | 1 Accounting policies General information Midatech Pharma plc (the ‘Company’) is a company registered and domiciled in England and Wales. The Company was incorporated on 12 September 2014. The Company is a public limited company, which has been listed on the Alternative Investment Market (‘AIM’), which is a submarket of the London Stock Exchange, since 8 December 2014. In addition, since 4 December 2015 the Company has American Depository Receipts (‘ADRs’) registered with the US Securities and Exchange Commission (‘SEC’) and is listed on the NASDAQ Capital Market. The financial statements were approved and authorised for issue by the Board of Directors on 25 April 2022. Basis of preparation The Group was formed on 31 October 2014 when Midatech Pharma plc entered into an agreement to acquire the entire share capital of Midatech Limited and its wholly owned subsidiaries through the issue equivalent of shares in the Company which took place on 13 November 2014. The financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB). The principal accounting policies adopted in the preparation of the financial statements are set out below. The policies have been consistently applied to all the periods presented. On 2 March 2020 a resolution was passed at a general meeting of shareholders of the Company to consolidate its ordinary shares on a one for 20 basis into new ordinary shares of 0.1p each in the capital of the Company. At the same meeting a resolution was passed to change the ratio of the Company's American Depositary Receipts ("ADRs"). This changed from one ADR representing 20 Existing Ordinary Shares to one ADR representing five new ordinary shares. Comparative numbers of shares and share options/warrants and related exercise/issue prices and earnings per share reflect the impact of the March 2020 share consolidation. The consolidated financial statements have been prepared on a historical cost basis, except for the following item (refer to individual accounting policies for details): - Certain financial instruments – fair value through profit or loss. Certain prior period amounts have been reclassified to conform to the current period presentation with no impact on previously reported net loss or cash flows, and no material impact on financial position Adoption of new and revised standards New standards, interpretations and amendments effective from 1 January 2021 The Group in reviewed the new standards, interpretations and amendments effective from 1 January 2021 and deemed none were applicable to the annual financial statements for the year ended 31 December 2021. New standards, interpretations and amendments not yet effective There are a number of standards, amendments to standards, and interpretations which have been issued by the IASB that are effective in future accounting periods that the group has decided not to adopt early. The following amendments are effective for the period beginning 1 January 2022: • Onerous Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37); • Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16); • Annual Improvements to IFRS Standards 2018-2020 (Amendments to IFRS 1, IFRS 9, IFRS16 and IAS 41); and • References to Conceptual Framework (Amendments to IFRS 3). The following amendments are effective for the period beginning 1 January 2023: • Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2); • Definition of Accounting Estimates (Amendments to IAS 8); and • Deferred Tax Related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12). These new accounting standards and amendments are not expected to have a material impact on the Group. The Group does not expect any other standards issued by the IASB, but not yet effective, to have a material impact on the group. Basis for consolidation The Group financial statements consolidate those of the parent company and all of its subsidiaries. The parent controls a subsidiary if it has power over the investee to significantly direct the activities, exposure, or rights to variable returns from its involvement with the investee, and the ability to use its power over the investee to affect the amount of the investor’s returns. All subsidiaries have a reporting date of 31 December. All transactions and balances between Group companies are eliminated on consolidation, including unrealised gains and losses on transactions between Group companies. Where unrealised losses on intra-Group asset sales are reversed on consolidation, the underlying asset is also tested for impairment from a Group perspective. Amounts reported in the financial statements of subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group. The consolidated financial statements consist of the results of the following entities: Schedule of entities Entity Summary description Midatech Pharma plc Ultimate holding company Midatech Limited Trading company Midatech Pharma (Espana) SL (formerly Midatech Biogune SL) Liquidated - 2021 PharMida AG Dormant Midatech Pharma (Wales) Limited (formerly Q Chip Limited) Trading company Midatech Pharma Pty Dissolved - 2020 Going concern The Group and Company are subject to a number of risks similar to those of other development and early-commercial stage pharmaceutical companies. These risks include, amongst others, generation of revenue from the development portfolio and risks associated with research, development, testing and obtaining related regulatory approvals of our pipeline products. Ultimately, the attainment of profitable operations is dependent on future uncertain events which include obtaining adequate financing to fulfill our commercial and development activities and generating a level of revenue adequate to support our cost structure. We have experienced net losses and significant cash outflows from cash used in operating activities over the past years as we develops our portfolio. For the year ended December 31, 2021 the Company incurred a consolidated loss from operations of £5.5million and negative cash flows from operating activities of £6.0million. As of December 31, 2021 the Group had an accumulated deficit of £127.8million. Our future viability is dependent on our ability to raise cash from financing activities to finance our development plans until commercialisation, generate cash from operating activities and to successfully obtain regulatory approval to allow marketing of our development products. Our failure to raise capital as and when needed could have a negative impact on our financial condition and ability to pursue our business strategies. Our Group's consolidated financial statements have been presented on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As at 31 December 2021, we had cash and cash equivalents of £10.1million. We forecast we currently has enough cash to fund its planned operations into the first quarter of 2023. We have prepared cash flow forecasts and considered the cash flow requirement for the Company for the next three years including the period twelve months from the date of approval of the consolidated financial statements. These forecasts show that further financing will be required during the course of the next 12 months, assuming, inter alia, that certain development programs and other operating activities continue as currently planned. This requirement for additional financing represents a material uncertainty raises substantial doubt about our ability to continue as a going concern. As a result, our independent registered public accounting firm included an explanatory paragraph in its report on our financial statements as of and for the year ended December 31, 2021 with respect to this uncertainty. In addition, the global pandemic COVID-19 virus places increased uncertainty over the Directors’ forecasts. The restrictions that have been placed on the movement of people caused delays to some of the Group’s plans. The Directors have established a COVID-19 task force internally to monitor the impact of COVID-19 on the business and prioritize activities to minimize its continuing effect. In addition to utilizing the existing cash reserves, we and our advisors are evaluating a number of near-term funding options potentially available to us, including fundraising and the partnering of assets and technologies of the Company. After considering the uncertainties, we considered it is appropriate to continue to adopt the going concern basis in preparing these financial information. Our ability to continue as a going concern is dependent upon our ability to obtain additional capital and/or dispose of assets, for which there can be no assurance we will be able to do on a timely basis, on favorable terms or at all. Revenue Revenue is accounted for in line with principles of IFRS 15 ‘Revenue from contracts with customers’ Revenue from licensing agreements The Group entered into a Licence Agreement during 2019. The licence consists of two distinct performance conditions, which is the grant of the license to use of its intellectual property (“IP”) and the supply of Product. After the Company has granted the license, and the Product is granted applicable marketing authorizations in the EU, the US, or the UK, France, Germany or Switzerland and China, there are no further obligations to participate in, or provide additional services to its customer. The transaction price for the grant of the license to use the Company’s IP comprises of fixed and variable payment streams and the grant of the license is considered to be a right to use IP. Upfront fees earned, are recognised as revenue at a point in time, upon transfer of control over the license to the licensee and the grant of the applicable marketing authorisation by the relevant statutory authority. For future royalty payments associated with a license, the Company applies the IFRS 15 exception for sales-based royalties and recognises the revenue only when the subsequent sale occurs. Supply of Goods Revenue from sales of goods to customer are recognised when all performance obligations are met. These criteria are considered to be met when the goods are delivered to the customer. Revenue represents the full list price of products shipped to wholesalers and other customers less product returns, discounts, rebates and other incentives based on the sales price. Supply of Services Revenue from the supply of services is subject to specific agreement. This is recognised over the contract term, proportionate to the progress in overall satisfaction of the performance obligations (the services performed by the Group), measured by cost incurred to date out of total estimate of costs. The primary input of substantially all work performed under these arrangements is labour. There is normally a direct relationship between costs incurred and the proportion of the contract performed to date. Where the Group supplies services to a client it generally bills an agreed percentage in advance of the commencement of any work and the balance on completion. Invoices to clients are payable under normal commercial terms. Grant revenue Where grant income is received, which is not a direct re-imbursement of related costs, revenue is recognised at the point at which the conditions have been met, this has been recognised within grant revenue. Where grants are received as a re-imbursement of directly related costs they are credited to research and development expense in the same period as the expenditure towards which they are intended to contribute. The Group previously received government loans that had a below-market rate of interest. These loans were recognised and measured in accordance with IFRS 9. The benefit of the below-market rate of interest was measured as the difference between the initial carrying value of the loan discounted at a market rate of interest and the proceeds received. The difference was held within deferred revenue as a government grant and released as a credit to grant income or to research and development expense in line with the expenditure to which it related. In a situation where the proceeds were invested in plant and equipment, the deferred revenue was credited to research and development within the income statement in line with the depreciation of the acquired asset. Business combinations and externally acquired intangible assets Business combinations are accounted for using the acquisition method at the acquisition date, which is the date at which the Group obtains control over the entity. The cost of an acquisition is measured as the amount of the consideration transferred to the seller, measured at the acquisition date fair value, and the amount of any non-controlling interest in the acquiree. The Group measures goodwill initially at cost at the acquisition date, being: the fair value of the consideration transferred to the seller, plus; the amount of any non-controlling interest in the acquiree, plus; if the business combination is achieved in stages, the fair value of the existing equity interest in the acquiree re-measured at the acquisition date, less; the fair value of the net identifiable assets acquired and assumed liabilities. Acquisition costs incurred are expensed and included in administrative costs. Any contingent consideration to be transferred by the acquirer is recognised at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration, whether it is an asset or liability, will be recognised through the consolidated statement of comprehensive income. If the contingent consideration is classified as equity, it is not re-measured. An intangible asset, which is an identifiable non-monetary asset without physical substance, is recognised to the extent that it is probable that the expected future economic benefits attributable to the asset will flow to the Group and that its cost can be measured reliably. The asset is deemed to be identifiable when it is separable or when it arises from contractual or other legal rights. Externally acquired intangible assets other than goodwill are initially recognised at cost and subsequently amortised on a straight-line basis over their useful economic lives where they are in use. Goodwill is stated at cost less any accumulated impairment losses. The amounts ascribed to intangibles recognised on business combinations are arrived at by using appropriate valuation techniques. In-process research and development (‘IPRD’) programmes acquired in business combinations are recognised as assets even if subsequent expenditure is written off because the criteria specified in the policy for development costs below are not met. IPRD is subject to annual impairment testing until the completion or abandonment of the related project. No further costs are capitalised in respect of this IPRD unless they meet the criteria for research and development capitalisation as set out below. As per IFRS 3, once the research and development of each defined project is completed, the carrying value of the acquired IPRD is reclassified as a finite-lived asset and amortised over its useful life. The significant intangibles recognised by the Group and their useful economic lives are as follows: Schedule of intangibles assets useful economic lives Goodwill – Indefinite life IPRD – In process, not yet amortising IT and website costs – 4 years The useful economic life of IPRD will be determined when the in-process research projects are completed. Internally generated intangible assets (development costs) Expenditure on the research phase of an internal project is recognised as an expense in the period in which it is incurred. Development costs incurred on specific projects are capitalised when all the following conditions are satisfied: completion of the asset is technically feasible so that it will be available for use or sale; the Group intends to complete the asset and use or sell it; the Group has the ability to use or sell the asset and the asset will generate probable future economic benefits (over and above cost); there are adequate technical, financial and other resources to complete the development and to use or sell the asset; and the expenditure attributable to the asset during its development can be measured reliably. All internal activities related to the research and development of new projects are continuously monitored by the Directors. The Directors consider that the criteria to capitalise development expenditure are not met for a product prior to that product receiving regulatory approval in at least one country. Development expenditure not satisfying the above criteria, and expenditure on the research phase of internal projects are included in research and development costs recognised in the Consolidated Statement of Comprehensive Income as incurred. No projects have yet reached the point of capitalisation. Impairment of non-financial assets Assets that have an indefinite useful life, for example goodwill, or intangible assets not ready for use, such as IPRD, are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). The Group at 31 December 2021 had only one cash generating unit (2020: one, 2019: one), as set out in note 13. Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of impairment at each reporting date. Impairment charges are included in profit or loss, except, where applicable, to the extent they reverse gains previously recognised in other comprehensive income. An impairment loss recognised for goodwill is not reversed. Patents and trademarks The costs incurred in establishing patents and trademarks are either expensed in accordance with the corresponding treatment of the development expenditure for the product to which they relate or capitalised if the development expenditure to which they relate has reached the point of capitalisation as an intangible asset. Foreign currency Transactions entered into by subsidiary entities in a currency other than the currency of the primary economic environment, in which they operate, are recorded at the rates ruling when the transactions occur. Foreign currency monetary assets and liabilities are translated at the rates ruling at the reporting date. Exchange differences arising on the retranslation of unsettled monetary assets and liabilities are recognised immediately in profit or loss. The presentational currency of the Group is Pounds Sterling. Foreign subsidiaries use the local currencies of the country where the operate. On consolidation, the results of overseas operations are translated into Pounds Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations, including goodwill arising on the acquisition of those operations, are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income and accumulated in the foreign exchange reserve. Exchange differences recognised in the profit or loss of Group entities on the translation of long-term monetary items forming part of the Group’s net investment in the overseas operation concerned are reclassified to other comprehensive income and accumulated in the foreign exchange reserve on consolidation. On disposal of a foreign operation, the cumulative exchange differences recognised in the foreign exchange reserve relating to that operation up to the date of disposal are transferred to the consolidated statement of comprehensive income as part of the gain or loss on disposal. Financial assets and liabilities Assets at amortised cost The Group does not have any financial assets which it would classify as fair value through profit or loss. Therefore, all financial assets are classed as assets at amortised cost as defined below. These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise principally through the provision of goods and services to customers (e.g. trade receivables), but also incorporate other types of contractual monetary asset. They are initially recognised at fair value plus transaction costs that are directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment. For impairment provisions, the Group applies the IFRS 9 simplified approach to measure expected credit losses using a lifetime expected credit loss provision for trade receivables to measure expected credit losses on a collective basis. Trade receivables are grouped based on a similar credit risk and ageing The expected loss rates are based on the Group’s historic credit losses experienced over the three-year period prior to the period end. The historic loss rates are then adjusted for current and forward-looking information on macroeconomic factors. The Group’s assets at amortised costs comprise trade and other receivables and cash and cash equivalents in the consolidated statement of financial position. Cash and cash equivalents include cash in hand, deposits held at call with original maturities of three months or less. Financial liabilities The Group classifies its financial liabilities into one of two categories, depending on the purpose for which the liability was acquired. Fair value through profit and loss (‘FVTPL’) The Group has outstanding warrants in the ordinary share capital of the company. The number of ordinary shares to be issued when exercised is fixed, however the exercise price is denominated in US Dollars being different to the functional currency of the parent company. Therefore, the warrants are classified as equity settled derivative financial liabilities recognised at fair value through the profit and loss account. The financial liability is valued using the either the Monte Carlo model or the Black-Scholes option pricing model. Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on re-measurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability and is included in the ‘finance income’ or ‘finance expense’ lines item in the income statement. Fair value is determined in the manner described in note 20. Other financial liabilities include the following items: Borrowings are initially recognised at fair value net of any transaction costs directly attributable to the issue of the instrument. Such interest-bearing liabilities are subsequently measured at amortised cost using the effective interest rate method, which ensures that any interest expense over the period to repayment is at a constant rate on the balance of the liability carried in the consolidated statement of financial position. Interest expense in this context includes initial transaction costs and premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding. Government loans received on favourable terms below market rate are discounted at a market rate of interest. The difference between the present value of the loan and the proceeds is held as a government grant within deferred revenue and is released to research and development expenditure or grant income in line with when the asset or expenditure is recognised in the income statement. Trade payables and other short-term monetary liabilities are initially recognised at fair value and subsequently carried at amortised cost using the effective interest method. Share capital Financial instruments issued by the Group are classified as equity only to the extent that they do not meet the definition of a financial liability or financial asset. The Group has two classes of share in existence: ordinary shares of £ 0.001 deferred shares of £1 each are classified as equity instruments. On 2 March 2020 a resolution was passed at a general meeting of shareholders of the Company to consolidate its ordinary shares on a one for 20 basis into new ordinary shares of £0.001 each in the capital of the Company Comparative figures in these financial statements reflect the impact of the share consolidation. Retirement benefits: defined contribution schemes Contributions to defined contribution pension schemes are charged to the consolidated statement of comprehensive income in the year to which they relate. Provisions Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event; it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Share-based payments The Group operates a number of equity-settled, share-based compensation plans, under which the entity receives services from employees as consideration for equity instruments (options) of the Group. The fair value of the employee services received in exchange for the grant of the options is recognised as an expense. The total amount to be expensed is determined by reference to the fair value of the options granted: including any market performance conditions (including the share price); excluding the impact of any service and non-market performance vesting conditions (for example, remaining an employee of the entity over a specified time period); and including the impact of any non-vesting conditions (for example, the requirement for employees to save). Non-market performance and service conditions are included in assumptions about the number of options that are expected to vest. The total expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. Where vesting conditions are accelerated on the occurrence of a specified event, such as a change in control or initial public offering, such remaining unvested charge is accelerated In addition, in some circumstances employees may provide services in advance of the grant date and therefore the grant date fair value is estimated for the purposes of recognising the expense during the period between service commencement period and grant date. At the end of each reporting period, the Group revises its estimates of the number of options that are expected to vest based on the non-market vesting conditions. It recognises the impact of the revision to original estimates, if any, in the income statement, with a corresponding adjustment to equity. When the options are exercised, the Company issues new shares. The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium. Leases Identifying Leases The Group accounts for a contract, or a portion of a contract, as a lease when it conveys the right to use an asset for a period of time in exchange for consideration. Leases are those contracts that satisfy the following criteria: (a) There is an identified asset; (b) The Group obtains substantially all the economic benefits from use of the asset; and (c) The Group has the right to direct use of the asset. The Group considers whether the supplier has substantive substitution rights. If the supplier does have those rights, the contract is not identified as giving rise to a lease. In determining whether the Group obtains substantially all the economic benefits from use of the asset, the Group considers only the economic benefits that arise from the use of the asset, not those incidental to legal ownership or other potential benefits. In determining whether the Group has the right to direct use of the asset, the Group considers whether it directs how and for what purpose the asset is used throughout the period of use. If there are no significant decisions to be made because they are pre-determined due to the nature of the asset, the Group considers whether it was involved in the design of the asset in a way that predetermines how and for what purpose the asset will be used throughout the period of use. If the contract or portion of a contract does not satisfy these criteria, the Group applies other applicable IFRSs rather than IFRS 16. All leases are accounted for by recognising a right-of-use asset and a lease liability except for: Leases of low value assets; and Leases with a duration of 12 months or less. Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate determined by reference to the group’s incremental borrowing rate on commencement of the lease. Right of use assets are initially measured at the amount of the lease liability, reduced for any lease incentives received, and increased for lease payments made at or before commencement of the lease. The Group has taken advantage of the practical expedient to ignore the requirement to separate non-lease components and instead account for the entire contract as a single lease. Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made. Right-of-use assets are amortised on a straight-line basis over the remaining term of the lease. When the group revises its estimate of the term of any lease (because, for example, it re-assesses the probability of a lessee extension or termination option being exercised), it adjusts the carrying amount of the lease liability to reflect the payments to make over the revised term, which are discounted using a revised discount rate. An equivalent adjustment is made to the carrying value of the right-of-use asset, with the revised carrying amount being amortised over the remaining (revised) lease term. If the carrying amount of the right-of-use asset is adjusted to zero, any further reduction is recognised in profit or loss. In 2018 the Group entered into a sublease agreement to mitigate the impact of an otherwise onerous lease on the closure of its Abingdon site. This has been recognised as a lease receivable as the Group determined that the sublease meets the definition of a finance lease under the transitional provisions of IFRS16 and therefore, no right-of-use asset is recognised. During 2020 the lease and sub-lease ended. Nature of leasing activities (in the capacity as lessee) The group leased a number of properties in the jurisdictions from which it operates. In some jurisdictions it is customary for lease contracts to provide for payments to increase each year by inflation or and in others to be reset periodically to market rental rates. As at 31 December 2021 the Group had one property lease in place in the UK. Deferred taxation Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the consolidated statement of financial position differs from its tax base, except for differences arising on: the initial recognition of goodwill; the initial recognition of an asset or liability in a transaction which is not a business combination and at the time investments in subsidiaries and jointly controlled entities where the Group is able to control the timing of the reversal of the difference and it is probable that the difference will not reverse in the foreseeable future. Recognition of deferred tax assets is restricted to those instances where it is probable that taxable profit will be available against which the difference can be utilised. The amount of the asset or liability is determined using tax rates that have been enacted or substantively enacted by the reporting date and are expected to app |
Critical accounting estimates a
Critical accounting estimates and judgements | 12 Months Ended |
Dec. 31, 2021 | |
Critical accounting estimates and judgements | 2 Critical accounting estimates and judgements The preparation of these consolidated financial statements requires the Group to make estimates, assumptions and judgments that can have a significant impact on the reported amounts of assets and liabilities, revenue and expenses and related disclosure of contingent assets and liabilities, at the respective dates of our financial statements. The Group bases its estimates, assumptions and judgments on historical experience and various other factors that we believe to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. Management evaluates estimates, assumptions and judgments on a regular basis and makes changes accordingly, and discusses critical accounting estimates with the board of Directors. The following are considered to be critical accounting estimates: Impairment of goodwill and intangible assets not yet ready for use Goodwill and intangibles not yet ready for use are tested for impairment at the cash generating unit level on an annual basis at the year end and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a cash generating unit below its carrying value. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. The fair value of each cash generating unit or asset is estimated using the income approach, on a discounted cash flow methodology. This analysis requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, including for revenues and development costs, estimation of the long term rate of growth for the business, estimation of the useful life over which cash flows will occur and determination of our weighted-average cost of capital. The carrying value of goodwill was £Nil (2020: £Nil; 2019: £ 2.3 10.1 The estimates used to calculate the fair value of a cash generating unit change from year to year based on operating results and market conditions. Changes in these estimates and assumptions could materially affect the determination of fair value and goodwill impairment for each such unit. In March 2020 the Group undertook a Strategic Review to re-evaluate its priorities in the context of available resources. The Board concluded that the Company was unlikely to conclude a license transaction or raise sufficient funds to continue the required remaining investment in MTD201 on a timely basis. The Board therefore decided to terminate further in-house development of the MTD201 programme with immediate effect and, in line with that decision, to close the Company’s MTD201 dedicated manufacturing facilities in Bilbao and offer redundancy to all 42 employees. As a result of the decision to terminate this program the Group recognised an impairment charge of £ 2.3 9.3 In June 2020 the Group received a letter from Secura Bio Inc., the licensor of Panobinostat, the active ingredient in the Group’s MTX110 development program, purporting to terminate our license. As a result of this purported termination an impairment charge of £0.8m was recognised in the year to 31 December 2020 against the acquired IPRD in relation to MTX110. See note 12 and 13. Share-based payments The Group accounts for share-based payment transactions for employees in accordance with IFRS 2 Share-based Payment, which requires the measurement of the cost of employee services received in exchange for the options on our ordinary shares, based on the fair value of the award on the grant date. The Directors selected the Black-Scholes-Merton option pricing model as the most appropriate method for determining the estimated fair value of our share-based awards without market conditions. For performance-based options that include vesting conditions relating to the market performance of our ordinary shares, a Monte Carlo pricing model was used in order to reflect the valuation impact of price hurdles that have to be met as conditions to vesting. The resulting cost of an equity incentive award is recognised as expense over the requisite service period of the award, which is usually the vesting period. Compensation expense is recognised over the vesting period using the straight-line method and classified in the consolidated statements of comprehensive income. The assumptions used for estimating fair value for share-based payment transactions are disclosed in note 26 to our consolidated financial statements and are estimated as follows: volatility is estimated based on the average annualised volatility of a number of publicly traded peer companies in the biotech sector; the estimated life of the option is estimated to be until the first exercise period, which is typically the month after the option vests; and the dividend return is estimated by reference to our historical dividend payments. Currently, this is estimated to be zero as no dividend has been paid in the prior periods. Financial liabilities Fair value through profit and loss (‘FVTPL’) The Group has outstanding warrants in the ordinary share capital of the company. The number of ordinary shares to be issued when exercised is fixed, however the exercise price is denominated in US Dollars being different to the functional currency of the parent company. Therefore, the warrants are classified as equity settled derivative financial liabilities recognised at fair value through the profit and loss account. The financial liability is valued using the either the Monte Carlo model or the Black-Scholes option pricing model. Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on re-measurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability and is included in the ‘finance income’ or ‘finance expense’ lines item in the income statement. Fair value is determined in the manner described in note 20. The following are considered to be critical accounting judgments: Revenue Supply of Services There are significant management judgements and estimates involved in the recognition of revenue from the supply of services. Revenue on services is recognised over the contract term, proportionate to the progress in overall satisfaction of the performance obligations (the services performed by the Group), measured by cost incurred to date out of total estimate of costs. Income taxes Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgment is required to determine the amount of deferred tax assets that can be recognised based upon the likely timing and the level of future taxable profits together with future tax planning strategies. In 2021, there were approximately £ 67.2 63.2 49.6 Going Concern We have has experienced net losses and significant cash outflows from cash used in operating activities over the past years as it develops its portfolio. For the year ended December 31, 2021 the Group incurred a consolidated loss from operations of £ 5.5million 127.8 Our future viability is dependent on our ability to raise cash from financing activities to finance our development plans until commercialisation, to generate cash from operating activities and to successfully obtain regulatory approval to allow marketing of our development products. Our failure to raise capital as and when needed could have a negative impact on our financial condition and ability to pursue our business strategies. Our Group's consolidated financial statements have been presented on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As at December 31, 2021, the Group had cash and cash equivalents of £10.1million. We forecast that we currently have enough cash to fund our planned operations into the first quarter of 2023. We have prepared cash flow forecasts and considered the cash flow requirement for the Company for our next three years including the period twelve months from the date of the approval of the financial statements. These forecasts show that further financing will be required during the course of the next 12 months, assuming, inter alia, that certain development programs and other operating activities continue as currently planned. This requirement for additional financing represents a material uncertainty that raises substantial doubt about our ability to continue as a going concern. In addition, the global pandemic COVID-19 virus places increased uncertainty over the Directors’ forecasts. The restrictions that have been placed on the movement of people caused delays to some of the Group’s plans. The Directors have established a COVID-19 task force internally to monitor the impact of COVID-19 on the business and prioritize activities to minimize its continuing effect. In addition to utilizing the existing cash reserves, we and our advisors are evaluating a number of near-term funding options potentially available to us, including fundraising and the partnering of assets and technologies of the Company. After considering the uncertainties, we considered it is appropriate to continue to adopt the going concern basis in preparing these financial information. Our ability to continue as a going concern is dependent upon our ability to obtain additional capital and/or dispose of assets, for which there can be no assurance we will be able to do on a timely basis, on favorable terms or at all. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Information | 3 Segment Information Revenue from contracts with customers Geographical analysis of revenue by destination of customer Schedule of revenue by geographical analysis 2021 £’000 2020 £’000 2019 £’000 Revenue from continuing operations: United Kingdom – 4 197 Belgium 578 114 – Rest of Europe – – 55 Rest of the World – 62 60 578 180 312 All revenue from continuing operations came from the sale of services in 2021, 2020 and 2019. In 2021, all revenue from continuing operations came from 1 customer (2020: 3 customers; 2019: 3 customers). Within revenue from discontinued operations for 2018, reported in the consolidated statement of comprehensive income under loss from discontinued operations, four customers each accounted for at least 10% of revenue from discontinued operations: Schedule of commercial segment 2021 £’000 2020 £’000 2019 £’000 Customer A 100 % 64 % 63 % Customer B – 34 % 19 % Customer C – 2 % 18 % The Group contains one reportable operating segment, Pipeline Research and Development (‘Pipeline R&D’). This segment seeks to develop products using the Group’s nanomedicine and sustained release technology platforms. The accounting policies of the reportable segments are consistent with the Group’s accounting policies described in note 1. Segment results represent the result of each segment without the allocation of head office expenses, interest expense, interest income and tax. No measures of segment assets and segment liabilities are reported to the Group’s Board of Directors in order to assess performance and allocate resources. There is no intersegment activity and all revenue is generated from external customers. Both the UK and Spanish entities meet the aggregation criteria and have therefore been presented as a single reportable segment under Pipeline R&D. The research and development activities involve the discovery and development of pharmaceutical products in the field of nanomedicine and sustained release technology. The cost recognised in the year to 31 December 2019 as a discontinued operation relate to a claim made by Midatech Pharma US, Inc. (“MPUS”) under the warranties provided by Midatech under the Stock Purchase Agreement entered into in connection with the disposal of MPUS, see note 4. In the following segmented results tables, depreciation and amortisation allocated to research and development costs, and administrative costs in the consolidated statements of comprehensive income, are presented separately. Segmented results for the year ended 31 December 2021 Schedule of segment Pipeline R&D £’000 Revenue 578 Total revenue 578 Other income 24 Research and development costs (excluding depreciation) (4,291 ) Administrative costs (excluding depreciation) (2,906 ) Depreciation (403 ) Loss from operations (6,998 ) Finance income 936 Finance expense (44 ) Loss before tax (6,106 ) Taxation 646 Loss for the year from continuing operations (5,460 ) Depreciation in year allocated as follows: Depreciation £’000 Research and development costs 363 Administrative costs 40 Total 403 Segmented results for the year ended 31 December 2020 Pipeline R&D £’000 Revenue 180 Grant revenue 163 Total revenue 343 Other income 12 Research and development costs (excluding depreciation and amortisation) (4,886 ) Administrative costs (excluding depreciation and amortisation) (4,923 ) Depreciation (1,207 ) Amortisation (10 ) Impairment (12,369 ) Loss from operations (23,040 ) Finance income 1 Finance expense (431 ) Loss before tax (23,470 ) Taxation 1,281 Loss for the year from continuing operations (22,189 ) Depreciation and amortisation in year allocated as follows: Depreciation £’000 Amortisation Research and development costs 1,174 8 Administrative costs 33 2 Total 1,207 10 Segmented results for the year ended 31 December 2019 Pipeline R&D £’000 Commercial £’000 Consolidated £’000 Revenue 312 – 312 Grant revenue 362 – 362 Total revenue 674 – 674 Other income 15 – 15 Research and development costs (excluding depreciation and (6,624 ) – (6,624 ) Distribution costs, sales and marketing (323 ) – (323 ) Administrative costs (excluding depreciation) (3,775 ) – (3,775 ) Loss from discontinued operations, net of tax – (947 ) (947 ) Depreciation (1,282 ) – (1,282 ) Amortisation (3 ) – (3 ) Loss from operations (11,318 ) (947 ) (12,265 ) Finance income 492 – 492 Finance expense (97 ) – (97 ) Loss before tax (10,923 ) (947 ) (11,870 ) Taxation 1,785 – 1,785 Loss for the year (9,138 ) (947 ) (10,085 ) Loss from continuing operations (9,138 ) Loss from discontinued operations (947 ) All material additions to non-current assets in 2021, 2020 and 2019 were in the Pipeline R&D segment. Non-current assets by location of assets Schedule of non-current assets by location of assets 2021 £’000 2020 £’000 2019 £’000 United Kingdom 1,152 542 12,775 Spain – – 4,383 1,152 542 17,158 |
Discontinued operations
Discontinued operations | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued operations | 4 Discontinued operations During 2018, the Group made the decision to sell MPUS, its Commercial business based in the US. The sale completed on 1 November 2018 to an affiliate of Barings LLC, a member of the MassMutual Financial Group, for total consideration of up to $ 19 6 Under the terms of the Stock Purchase Agreement, the Group agreed to indemnify the Purchaser against, inter alia, any liability related to any prescription drug user fee amounts owed to the United States Food and Drug Administration (“FDA”) under the Prescription Drug Fee User Act (“PDUFA”) by MPUS for the United States government’s fiscal year ended 30 September 2018. MPUS had successfully obtained waivers for user fees for all prior fiscal periods in which it was liable under PDUFA and entered into the Stock Purchase Agreement with the Purchaser confident that a further waiver would be obtained. However, during 2019 MPUS sought approval from the FDA for a filing relating to one of its commercial products and was informed by the FDA that the approval would not be forthcoming whilst the PDUFA fee remained unpaid. Consequently, MPUS paid the PDUFA fee of £0.95m and then, in accordance with the terms of the Stock Purchase Agreement, Midatech deposited the same amount with MPUS, pending completion of the waiver application process. At 31 December 2019 Management considered the recoverability of the sum paid under the warranty, and although the waiver process was still on-going, Management concluded, based on third party advice, that the probability of successfully achieving the waiver had diminished and therefore took the decision to expense the cost of the warranty claim in 2019. As a result of Fortovia Theraputics Inc (formerly MPUS) filing for bankruptcy during 2020 the waiver claim is no longer being pursued. The post-tax loss on disposal of discontinued operations was determined as follows: Schedule of post-tax loss on disposal of discontinued operations Result of discontinued operations 2021 £’000 2020 £’000 2019 £’000 Revenue – – – Expenses other than finance costs – – (947 ) Finance costs – – – Impairment – – – Loss from discontinued operations before tax – – (947 ) Taxation – – – Loss on disposal of discontinued operations – – – Loss for the year from discontinued operations after tax – – (947 ) Schedule of amounts related to discontinued operations Statement of cash flows 2021 £’000 2020 £’000 2019 £’000 The statement of cash flows includes the following amounts relating to Operating activities – – – Investing activities – – (947 ) Financing activities – – – Net cash flow from discontinued operations – – (947 ) |
Loss from operations
Loss from operations | 12 Months Ended |
Dec. 31, 2021 | |
Loss from operations | 5 Loss from operations Schedule of loss from operations 2021 £’000 2020 £’000 2019 £’000 Loss from operations is stated after charging/(crediting): Depreciation of property, plant and equipment – From continuing operations 213 1,089 979 Depreciation of right of use asset – From continuing operations 190 118 303 Amortisation of intangible assets – product and marketing rights – – From continuing operations – 10 3 Impairment of intangible assets – 12,369 – Fees payable to the Company’s auditor for the audit of the parent 88 87 110 Fees payable to the Company’s subsidiary auditors for the audits of the 44 43 48 Fees payable to the Company’s auditor for: – Other services – 7 66 Fees payable to the Company’s previous auditor for the audit of the – 15 – Fees payable to the Company’s previous auditor for: - Other services 41 171 – Foreign exchange(gain)/loss 12 96 131 Profit/(Loss) (42 ) (226 ) – Equity settled share-based payment * 89 (404 ) (34 ) * credit recognised in prior years due to employees leaving the company and the subsequent reversal of the cumulative share based payment charge relating to share options under the 2014 Midatech Pharma plc Enterprise Management Incentive Scheme. |
Staff costs
Staff costs | 12 Months Ended |
Dec. 31, 2021 | |
Staff Costs | |
Staff costs | 6 Staff costs Staff costs (including Directors), for continuing and discontinued operations, comprise: Schedule of staff costs 2021 £’000 2020 £’000 2019 £’000 Wages and salaries 1,354 2,727 2,762 Defined contribution pension cost (note 25) 71 75 90 Social security contributions and similar taxes 152 397 565 Share-based payment charge/(credit) 89 (404 ) (34 ) Staff costs gross 1,666 2,795 3,383 Continuing operations 1,666 2,795 3,383 Discontinued operations – – – Staff costs 1,666 2,795 3,383 Employee numbers The average number of staff employed by the Group during the financial year, for continuing and discontinued operations, amounted to: Schedule for average number of employed staff 2021 2020 2019 Research and development 15 31 52 General and administration 5 9 13 20 40 65 Key management personnel compensation Schedule of Management Personnel Compensation 2021 £’000 2020 £’000 2019 £’000 Short term employee benefits 658 472 812 Wages and salaries – – 656 Payments made to third parties – – 82 Social security contributions and similar taxes – – 72 Benefits in kind – – 2 Post-employment benefits 27 24 42 Defined contribution pension cost – – 42 Termination benefits – 30 – Share-based payment 61 (472 ) (58 ) Total 746 54 796 Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Group, including the Directors of the Company, Chief Executive Officer and the Chief Scientific Officer . None of the Directors have exercised share options during the year (2020: nil, 2019: nil). During the year 1 Directors (2020:2; 2019: 3) participated in a defined contribution pension scheme. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, plant and equipment | 10 Property, plant and equipment Schedule of detailed information about property, plant and equipment Fixtures and fittings £’000 Leasehold improvements £’000 Computer equipment £’000 Laboratory equipment £’000 Right of use asset £’000 Total £’000 Cost At 1 January 2019 253 2,013 383 3,651 – 6,300 Adoption of IFRS 16 Leases – – – – 395 395 Additions 4 137 23 223 822 1,209 Effect of modification to lease terms – – – – (82 ) (82 ) Exchange differences (9 ) (112 ) (3 ) (136 ) (11 ) (271 ) At 31 December 2019 248 2,038 403 3,738 1,124 7,551 Additions – 58 16 135 – 209 Effect of modification to lease terms – – – – (678 ) (678 ) Disposal (202 ) (2,184 ) (185 ) (2,323 ) (316 ) (5,210 ) Exchange differences 7 92 2 112 58 271 At 31 December 2020 53 4 236 1,662 188 2,143 Additions 57 53 16 194 720 1,040 Transfer – – – (155 ) 155 – Effect of modification to lease terms – – – – (24 ) (24 ) Disposal (50 ) (4 ) (10 ) (138 ) (164 ) (366 ) At 31 December 2021 60 53 242 1,563 875 2,793 Fixtures and fittings £’000 Leasehold improvements £’000 Computer equipment £’000 Laboratory equipment £’000 Right of use asset £’000 Total £’000 Accumulated depreciation At 1 January 2019 241 1,485 265 2,326 – 4,317 Charge for the year 2 400 70 507 303 1,282 Exchange differences (8 ) (91 ) (3 ) (93 ) (7 ) (202 ) At 31 December 2019 235 1,794 332 2,740 296 5,397 Charge for the year 9 310 50 720 118 1,207 Disposals (202 ) (2,183 ) (185 ) (2,300 ) (316 ) (5,186 ) Exchange differences 7 81 2 79 14 183 At 31 December 2020 49 2 199 1,239 112 1,601 Transfer – – – (74 ) 74 – Charge for the year 8 5 22 178 190 403 Disposals (50 ) (3 ) (8 ) (138 ) (164 ) (363 ) At 31 December 2021 7 4 213 1,205 212 1,641 Net book value At 31 December 2021 53 49 29 358 663 1,152 At 31 December 2020 4 2 37 423 76 542 At 31 December 2019 13 244 71 998 828 2,154 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases | 11 Leases Schedule of market rental rates Lease Liabilities 2021 £’000 2020 £’000 2019 £’000 At 1 January 76 907 546 Additions 720 – 822 Transfer 77 – – Effect of modification to lease terms (24 ) (788 ) (82 ) Interest expenses 29 15 24 Lease payments (112 ) (105 ) (391 ) Exchange differences – 47 (12 ) At 31 December 766 76 907 The right of use asset is disclosed in note 10. In April 2021 the Group signed an agreement to lease new premises in Cardiff, Wales, to house its corporate offices and laboratories. The agreement to lease allowed the Group to carry out the Cat A works and fit out prior to completion of the lease and its occupation in August 2021. The lease agreed was for a 5 year period with no break clause. The lease has been recognised as a right of use asset during the year from the date of the agreement to lease. In May 2021 the Group provided notice to terminate its property lease on its historical building in Cardiff. The lease required 6 month’s notice. During 2020 as a result of the closure of the Group’s operations in Spain two property leases were terminated early, this impacted both the right of use asset and the lease liability. Management considered the appropriate life of a lease in the UK in 2021, 2020 and 2019 and adjusted the right of use asset and lease liability accordingly. Low value leases expensed in year 2021 £’000 2020 £’000 2019 £’000 Low value leases expensed 2 10 29 Total 2 10 29 |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2021 | |
Intangible assets | 12 Intangible assets Schedule of reconciliation of changes in intangible assets and goodwill In-process £’000 Goodwill £’000 IT/Website £’000 Total £’000 Cost At 1 January 2019 13,378 2,291 28 15,697 Additions – – 9 9 Foreign exchange – – (2 ) (2 ) At 31 December 2019 13,378 2,291 35 15,704 Disposal – – (36 ) (36 ) Foreign exchange – – 1 1 At 31 December 2020 13,378 2,291 – 15,669 At 31 December 2021 13,378 2,291 – 15,669 In-process research and development £’000 Goodwill £’000 IT/Website Costs £’000 Total £’000 Accumulated amortisation and impairment At 1 January 2019 3,300 – 23 3,323 Amortisation charge for the year – – 3 3 Foreign exchange – – (1 ) (1 ) At 31 December 2019 3,300 – 25 3,325 Amortisation charge for the year – – 10 10 Disposal – – (36 ) (36 ) Impairment 10,078 2,291 – 12,369 Foreign exchange – – 1 1 At 31 December 2020 13,378 2,291 – 15,669 At 31 December 2021 13,378 2,291 – 15,669 Net book value At 31 December 2021 – – – – At 31 December 2020 – – – – At 31 December 2019 10,078 2,291 10 12,379 The individual intangible assets, excluding goodwill, which are material to the financial statements are: Schedule of individual intangible assets Carrying amount Remaining amortisation 2021 £’000 2020 £’000 2019 £’000 2021 (years) 2020 (years) 2019 (years) Midatech Pharma (Wales) Limited acquired IPRD – – 9,300 n/a n/a n/a in process MTX110 acquired IPRD – – 778 n/a n/a n/a in process – – 10,078 In 2020 an impairment charge of £0.8m was recorded in relation to the acquire IPRD on MTX110. The impairment was as a result of the termination of a License Agreement between the Company and Secura Bio Inc. Pursuant to the License Agreement, Midatech Limited was granted a non-exclusive worldwide, sub-licenseable license to certain patents of Panobinostat, the active pharmaceutical ingredient of the Company’s development product MTX110. |
Impairment testing
Impairment testing | 12 Months Ended |
Dec. 31, 2021 | |
Impairment testing | 13 Impairment testing Midatech Pharma (Wales) Ltd Details of goodwill and IPRD allocated to the acquired cash generating unit and the valuation basis are as follows: Schedule of cash generating unit Indefinite lived IPRD carrying amount Goodwill carrying amount Name 2021 £’000 2020 £’000 2019 £’000 2021 £’000 2020 £’000 2019 £’000 Valuation Basis CGU – Midatech Pharma (Wales) Ltd – – 9,300 – – 2,291 Value in use As a result of the Board’s decision to terminate its MTD201 program in March 2020 an impairment charge of £ 11.6 9.3 2.3 The assets of MPW were valued as at 31 December 2019 were found to support the IPRD and goodwill carrying amounts set out above. The IPRD was valued using 12-13 year risk adjusted cash flow forecasts, in line with patent life, that had been approved by the Board. A period longer than 5 years was appropriate on the basis that the investment was long term and the development and commercialisation process is typically in excess of 5 years. Beyond the period from product launch and initial market penetration, a long term growth rate of Nil was used The key assumptions used in the valuation model examining the MPW Ltd cash generating unit include the following: Schedule of key assumptions used Assumptions 2021 2020 2019 Pre-tax discount rate n/a n/a 18.4 % Cumulative probability of success of projects n/a n/a 81 % The discount rate is an estimated market-based weighted average cost of capital for the MPW business, determined at the date of acquisition. Cumulative probability of success of projects is the product of the probability of success of each remaining major phase of development for each individual IPRD component. These phase probabilities were determined by management with reference to the risks associated with each remaining development stage. Sensitivity analysis If any one of the following changes were made to the above key assumptions, the carrying value and recoverable amount would be equal. Schedule of key assumptions used for carrying value and recoverable amount Assumptions 2021 2020 2019 Pre-tax discount rate for all projects n/a n/a increase to 21 Cumulative probability of success of project n/a n/a 59 % |
Subsidiaries
Subsidiaries | 12 Months Ended |
Dec. 31, 2021 | |
Subsidiaries | 14 Subsidiaries The subsidiaries of Midatech Pharma plc, all of which are 100% owned, either directly or through subsidiaries where indicated, and have been included in these financial statements in accordance with the details set out in the basis of preparation and basis of consolidation note 1, are as follows: Schedule of subsidiaries Name Registered Office Nature of Business Notes Midatech Limited 1 Caspian Point, Caspian Way, Cardiff, CF10 4DQ Trading company PharMida AG c/o Kellerhals, Hirschgässlein 11, 4051 Basel, Switzerland Dormant (a) (b) Midatech Pharma (Wales) 1 Caspian Point, Caspian Way, Cardiff, CF10 4DQ Trading company Notes: (a) Wholly owned subsidiary of Midatech Limited. (b) PharMida AG became dormant in January 2016. (c) Midatech Pharma PTY was incorporated on 16 February 2015 and dissolved November 2020. |
Trade and other receivables
Trade and other receivables | 12 Months Ended |
Dec. 31, 2021 | |
Trade and other receivables | 15 Trade and other receivables Schedule of trade and other receivables 2021 £’000 2020 £’000 2019 £’000 Trade receivables 33 95 22 Prepayments 607 258 151 Other receivables 394 219 3,444 Total trade and other receivables 1,034 572 3,617 Less: non-current portion (rental deposit and on bond) – – (2,625 ) Current portion 1,034 572 992 Trade and other receivables do not contain any impaired assets. The Group does not hold any collateral as security and the maximum exposure to credit risk at the consolidated statement of financial position date is the fair value of each class of receivable. Book values approximate to fair value at 31 December 2021, 2020 and 2019. During 2019 a cash-backed guarantee was provided to the Spanish Government in relation to a loan provided to the Group under its Reindustrialization programme, see note 18. As a result of the closure of Midatech Pharma (España) SL during 2020 the cash-back guarantee was released on the repayment of the loan to the Spanish Government. |
Cash and cash equivalents and c
Cash and cash equivalents and cash flow supporting notes | 12 Months Ended |
Dec. 31, 2021 | |
Cash and cash equivalents and cash flow supporting notes | 16 Cash and cash equivalents and cash flow supporting notes Cash and cash equivalents for purposes of the consolidated statement of cash flows comprises: Schedule of cash and cash equivalents 2021 £’000 2020 £’000 2019 £’000 Cash at bank available on demand 10,057 7,546 10,928 During 2021, 2020 and 2019, cash inflows arose from equity financing transactions, included within financing activities on the face of the cash flow statement. As part of the equity transaction in July 2021 warrants to the value of £Nil (May 2020: £ 1.0m 1.1m Schedule of cash inflows from an equity financing transaction 2021 £’000 2020 £’000 2019 £’000 Gross proceeds 10,091 10,792 15,767 Transaction costs (1,056 ) (1,050 ) (1,659 ) Proceeds from issuing shares 9,035 9,742 14,108 The following changes in loans and borrowings arose as a result of financing activities during the year: Schedule of changes in bank loan liabilities Non-current £’000 Current £’000 Total £’000 At 1 January 2021 60 200 260 Cash flows – (215 ) (215 ) Non-cashflows: Foreign Exchange – (4 ) (4 ) New leases 715 5 720 Effect of modification to lease term – IFRS 16 – (24 ) (24 ) Loans and borrowings classified as non-current 31 December 2020 (178 ) 178 – Interest accruing in period 23 6 29 At 31 December 2021 620 146 766 Non-current £’000 Current £’000 Total £’000 At 1 January 2020 5,670 412 6,082 Cash flows (6,182 ) (258 ) (6,440 ) Non-cashflows: Foreign Exchange 252 23 275 Fair value changes 1,176 – 1,176 Effect of modification to lease term – IFRS 16 (877 ) 89 (788 ) Reclassification portion government loan to non-current 51 (51 ) – Interest accruing in period (30 ) (15 ) (45 ) At 31 December 2020 60 200 260 Non-current £’000 Current £’000 Total £’000 At 1 January 2019 884 368 1,252 Cash flows 5,575 (1,027 ) 4,548 Non-cashflows: Foreign Exchange (42 ) (29 ) (71 ) Fair value changes (1,139 ) – (1,139 ) Adoption of IFRS16 leases 163 383 546 Effect of modification to lease term – IFRS 16 – (82 ) (82 ) New leases 805 95 900 Loans and borrowings classified as non-current 31 December 2018 (685 ) 685 – Transfer to grant income – (14 ) (14 ) Interest accruing in period 108 34 142 At 31 December 2019 5,670 412 6,082 |
Trade and other payables
Trade and other payables | 12 Months Ended |
Dec. 31, 2021 | |
Trade and other payables | 17 Trade and other payables Schedule of trade and other payables Current 2021 £’000 2020 £’000 2019 £’000 Trade payables 485 337 725 Other payables 5 26 13 Accruals 546 768 1,765 Total financial liabilities, excluding loans and borrowings, 1,036 1,131 2,503 Tax and social security 56 31 86 Deferred revenue and government grants – 68 1,905 Total trade and other payables 1,092 1,230 4,494 Book values approximate to fair value at 31 December 2021, 2020 and 2019. All current trade and other payables are payable within 3 months of the period end date shown above. Government grants The Group received development grant funding from the European Union under the Horizon 2020 ‘Nanofacturing’ project, a European Union funded programme to develop a scalable manufacturing platform for the production of nanopharmaceutical products. Midatech participated in this programme, along with seven other entities, through two Group companies, Midatech Pharma España SL (‘MPE’), which acted as project coordinator, and Midatech Limited (‘MTL’). The project commenced in February 2015 and completed in January 2019. During the year £nil (2020: £nil, 2019: £ 124 |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2021 | |
Schedule Of Provisions | |
Provisions | 19 Provisions Schedule of provisions 2021 £’000 2020 £’000 2019 £’000 Opening provision at 1 January 50 97 165 Utilisation of provision – (97 ) Provision recognised/(released) in the year – 50 (68 ) At 31 December 50 50 97 Less: non-current portion – (50 ) – Current portion 50 – 97 The provision as at 31 December 2021 and 2020 represents management’s best estimate of the ‘making good’ clause on the Cardiff office which was vacated during the fourth quarter of 2021. The provision as at 31 December 2019 relates to the ‘making good’ clause on the Abingdon office which was vacated in December 2018. The Abingdon office was sub-let for the remaining period of the lease, which terminated in February 2020. |
Financial instruments _ risk ma
Financial instruments – risk management | 12 Months Ended |
Dec. 31, 2021 | |
Financial instruments – risk management | 21 Financial instruments – risk management The Group is exposed through its operations to the following financial risks: Credit risk Foreign exchange risk Liquidity risk This note describes the Group’s policies and processes for managing those risks. The policy for managing these risks is reviewed and agreed with the Board, however it has delegated the authority for designing and operating processes that ensure the effective management of the risks to the Group’s management. . Principal financial instruments The principal financial instruments used by the Group, from which financial instrument risk arises, are as follows: Trade and other receivables Cash and cash equivalents Trade and other payables Accruals Loans and borrowings Derivative financial liability A summary of the financial instruments held by category is provided below: Financial assets – amortised cost Schedule of consolidated derivative financial instruments 2021 £’000 2020 £’000 2019 £’000 Cash and cash equivalents 10,057 7,546 10,928 Trade receivables 33 95 22 Other receivables – – 2,625 Total financial assets 10,090 7,641 13,575 Financial liabilities – amortised cost 2021 £’000 2020 £’000 2019 £’000 Trade payables 485 337 725 Other payables 5 26 13 Accruals 546 768 1,765 Borrowings 766 260 6,082 Total financial liabilities – amortised cost 1,802 1,391 8,585 Financial liabilities – fair value through profit and loss – current 2021 £’000 2020 £’000 2019 £’000 Equity settled derivative financial liability 553 1,559 664 Fair value hierarchy The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: Level 1: quoted (unadjusted) prices in active markets for identical assets and liabilities; Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly; and Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data. The fair value of the Group’s derivative financial liability is measured at fair value on a recurring basis. The following table gives information about how the fair value of this financial liability is determined, additional disclosure is given in note 20: Schedule of consolidated financial assets and liabilities at fair value Financial Fair value as Fair Valuation Significant unobservable input(s) Relationship of Equity settled £ 467,000 Level 3 Monte Carlo simulation model Volatility rate of 95.0% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 3.88 years determined using the remaining life of the share options. The shorter the expected life the lower the fair value. Risk-free rate of 0.31% determined using the expected life assumptions. The higher the risk-free rate Equity settled £ 86,000 Level 3 Monte Carlo simulation model Volatility rate of 85.0% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 3.5 years determined using the remaining life of the share options. The shorter the expected life the lower the fair value. Risk-free rate of 0.71% determined using the expected life assumptions. The higher the risk-free rate Equity settled – Level 3 Black-Scholes option pricing model Volatility rate of 85.0% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.10 and 0.9 years determined using the remaining life of the share options. The shorter the expected life Risk-free rate of 0.71% determined using the expected life assumptions. The higher the risk-free rate Total £ 553,000 Financial Fair value as Fair Valuation Significant unobservable input(s) Relationship of Equity settled £ 1,187,000 Level 3 Monte Carlo simulation model Volatility rate of 105.0% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 4.49 years determined using the remaining life of the share options. The shorter the expected life the lower the fair value. Risk-free rate of 0.07% determined using the expected life assumptions. The higher the risk-free rate Equity settled £ 372,000 Level 3 Monte Carlo simulation model Volatility rate of 105.0% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 4.888 years determined using the remaining life of the share options. The shorter the expected life the lower the fair value. Risk-free rate of 0.08% determined using the expected life assumptions. The higher the risk-free rate Equity settled – Level 3 Black-Scholes option pricing model Volatility rate of 105.0% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 1.0 and 1.9 years determined using the remaining life of the share options. The shorter the expected life Risk-free rate of 0.8% determined using the expected life assumptions. The higher the risk-free rate Total £ 1,559,000 Financial Fair value Fair value Valuation Significant unobservable input(s) Relationship of Equity settled £ 664,000 Level 3 Monte Carlo simulation model Volatility rate of 78.4% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 5.68 years determined using the remaining life of the share options. The shorter the expected life the lower the fair value. Risk-free rate between a range of 0.59% and 1.69 % determined using the expected life assumptions. The higher the risk-free rate Equity settled – Level 3 Black-Scholes option pricing model Volatility rate of 78.3% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 2.0 and 2.9 years determined using the remaining life of the share options. The shorter the expected life Risk-free rate between a range of 0.0% and 0.26 % determined using the expected life assumptions. The higher the risk-free rate Total £ 664,000 Changing the unobservable risk free rate input to the valuation model by 10% higher while all other variables were held constant, would not impact the carrying amount of shares (2020 : nil ; 2019: nil). There were no transfers between Level 1 and 2 in the period. The financial liability measured at fair value on Level 3 fair value measurement represents consideration relating to warrants issued in May 2020 and October 2019 as part of Registered Direct offerings and also a business combination. Credit risk The Group is exposed to credit risk from amounts due from collaborative partners and from cash and cash equivalents and deposits with banks and financial institutions. The risk from collaborative partners is deemed to be low. For banks and financial institutions, only independently rated parties with high credit status are accepted. The Group does not enter into derivatives to manage credit risk. The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect of recovery. The total exposure to credit risk of the Group is equal to the total value of the financial assets held at each year end as noted above. Foreign exchange risk Foreign exchange risk arose because the Group had a material operation located in Bilbao, Spain. Given the levels of materiality, the Group did not hedge its net investments in overseas operations as the cost of doing so would be disproportionate to the exposure. The table below shows analysis of the Pounds Sterling equivalent of year-end cash and cash equivalent balances by currency: Schedule of foreign exchange risk 2021 £’000 2020 £’000 2019 £’000 Cash and cash equivalents: Pounds Sterling 10,057 7,247 3,153 US Dollar – 120 2,021 Euro – 179 5,750 Other – – 4 Total 10,057 7,546 10,928 The table below shows the foreign currency exposure that gives rise to net currency gains and losses recognised in the consolidated statement of comprehensive income. As at 31 December, these exposures were as follows: 2021 £’000 2020 £’000 2019 £’000 Net Foreign Currency Assets/(Liabilities): US Dollar – 120 2,021 Euro 22 54 1,460 Other – 1 7 Total 22 175 3,488 Foreign exchange risk also arises when individual Group entities enter into transactions denominated in a currency other than their functional currency; the Group’s transactions outside the UK to the US and Europe drive foreign exchange movements where suppliers invoice in currency other than sterling. These transactions are not hedged because the cost of doing so is disproportionate to the risk. Foreign currency sensitivity analysis The most significant currencies in which the Group transacts, other than Pounds Sterling, are the US Dollar and the Euro. The Group also trades in other currencies in small amounts as necessary. The following table details the Group’s sensitivity to a 10% change in year-end exchange rates, which the Group feels is the maximum likely change in rate based upon recent currency movements, in the key foreign currency exchange rates against Pounds Sterling: Schedule of foreign currency exchange rates Year ended 31 December 2021 US Dollar £’000 Euro £’000 Other £’000 Loss before tax – 2 – Total equity – 2 – Year ended 31 December 2020 US Dollar £’000 Euro £’000 Other £’000 Loss before tax 12 (293 ) (4 ) Total equity 12 (293 ) (4 ) Year ended 31 December 2019 US Dollar £’000 Euro £’000 Other £’000 Loss before tax 202 54 – Total equity 202 31 1 Liquidity risk Liquidity risk arises from the Group’s management of working capital. It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due. It is the Group’s aim to settle balances as they become due. In February 2021, previously issued warrants were exercised resulting in the Company receiving £0.13m before expenses. In July 2021, the Company completed a UK placing which raised £10.0m before expenses. The Directors have prepared cash flow forecasts and considered the cash flow requirement for the Company for the next three years including the period twelve months from the date of approval of the consolidated financial statements. These forecasts show that further financing will be required during the first quarter of 2023 assuming, inter alia, that certain development programs and other operating activities continue as currently planned. This requirement for additional financing in the short term represents a material uncertainty that may cast significant doubt upon the Group and parent company’s ability to continue as a going concern. In addition, the global pandemic COVID-19 virus places increased uncertainty over the Directors’ forecasts. The restrictions that have been placed on the movement of people caused delays to some of the Group’s plans. The Directors have established a COVID-19 task force internally to monitor the impact of COVID-19 on the business and prioritize activities to minimize its continuing effect. The Directors are evaluating a number of near-term funding options potentially available to the Group, including fundraising and the partnering of assets and technologies of the Company. After considering the uncertainties, the Directors consider it is appropriate to continue to adopt the going concern basis in preparing these financial statements. The following table sets out the contractual maturities (representing undiscounted contractual cash-flows) of financial liabilities: Schedule of contractual maturities of financial liabilities 2021 Up to 3 £’000 Between 3 and 12 months £’000 Between years £’000 Between £’000 Over £’000 Trade and other payables 1,036 – – – – Lease liabilities 46 171 195 442 – Total 1,082 171 195 442 – 2020 Up to 3 £’000 Between 3 and 12 months £’000 Between years £’000 Between £’000 Over £’000 Trade and other payables 1,131 – – – – Lease liabilities 25 75 61 8 – Government research loans 107 – – – – Total 1,263 75 61 8 – 2019 Up to 3 £’000 Between 3 and 12 months £’000 Between years £’000 Between £’000 Over £’000 Trade and other payables 2,503 – – – – Lease liabilities 79 165 317 735 – Government research loans – 272 238 2,851 3,317 Total 2,582 437 555 3,586 3,317 More details with regard to the line items above are included in the respective notes: Trade and other payables – note 17 Borrowings – note 18 As a result of the Strategic Review undertaken in March 2020 the Group repaid all Government Research loans during 2020 and 2021. Capital risk management The Group monitors capital which comprises all components of equity (i.e. share capital, share premium, foreign exchange reserve and accumulated deficit). The Group’s objectives when maintaining capital are: to safeguard the entity’s ability to continue as a going concern; and to have sufficient resource to take development projects forward towards commercialisation. The Group continues to incur substantial operating expenses. Until the Group generates positive net cash inflows from the commercialisation of its products it remains dependent upon additional funding through the injection of equity capital and government funding. The Group may not be able to generate positive net cash inflows in the future or to attract such additional required funding at all, or on suitable terms. In such circumstances the development programmes may be delayed or cancelled, and business operations cut back. The Group seeks to reduce this risk by keeping a tight control on expenditure, avoiding long term supplier contracts (other than clinical trials), prioritising development spend on products closest to potential revenue generation, obtaining government grants (where applicable), maintaining a focussed portfolio of products under development and keeping shareholders informed of progress. There have been no changes to the Group’s processes for managing capital risk since the previous year. |
Deferred tax
Deferred tax | 12 Months Ended |
Dec. 31, 2021 | |
Deferred tax | 22 Deferred tax Deferred tax is calculated in full on temporary differences under the liability method using tax rates applicable in the tax jurisdictions where the tax asset or liability would arise. The movement on the deferred tax account in 2021 is £nil (2020: £nil, 2019: £nil) as the net credit arising on the amortisation of intangible assets and other timing differences has been matched by a reduction in the deferred tax asset recognised on the losses offsetting the liability remaining. Unused tax losses carried forward, subject to agreement with local tax authorities, were as follows: Schedule of unused tax losses carried forward Gross losses £’000 Potential £’000 31 December 2021 67,210 16,925 31 December 2020 63,183 13,076 31 December 2019 49,565 8,426 During 2020 the remaining deferred tax asset and liability arising on the business combination of Midatech Pharma (Wales) Ltd (2019: £ 1.6 The deferred tax asset which qualifies for offset against the deferred tax liability, mainly arising on the acquisitions of Midatech Pharma (Wales) Limited in 2021 is £nil (2020: £nil, 2019: £1.6m). The remaining potential deferred tax asset of £16.9m (2020 £13.1m, 2019: £9.0m) has not been provided in these accounts due to uncertainty as to whether the asset would be recovered. The losses have arisen as a result of accumulated trading losses. Deferred tax asset balances disclosed as at 31 December 2021 have been calculated at 25%. The Finance Bill 2021 enacts an increase in the tax rate to 25% from 1 April 2023. Details of the deferred tax liability are as follows: Schedule of deferred tax liability 2021 Asset £’000 Liability £’000 Net £’000 Business Combinations – – – 2020 Asset £’000 Liability £’000 Net £’000 Business Combinations – – – 2019 Asset £’000 Liability £’000 Net £’000 Business Combinations 1,581 (1,581 ) – |
Reserves
Reserves | 12 Months Ended |
Dec. 31, 2021 | |
Reserves | 24 Reserves The following describes the nature and purpose of each reserve within equity: Schedule of reserves Reserve Description and purpose Share premium Amount subscribed for share capital in excess of nominal value. Merger reserve Represents the difference between the fair value and nominal value of shares issued on the acquisition of subsidiary companies where the Company has elected to take advantage of merger accounting. Foreign exchange reserve Gains/losses arising on retranslating the net assets of overseas operations into sterling. Warrant reserve Represents the fair value of warrants denominated in £ at the date of grant Accumulated deficit All other net gains and losses and transactions with owners (e.g. dividends) not recognised elsewhere. |
Retirement benefits
Retirement benefits | 12 Months Ended |
Dec. 31, 2021 | |
Retirement benefits | 25 Retirement benefits The Group operates a defined contribution pension scheme for the benefit of its employees. The assets of the scheme are administered by trustees in funds independent from those of the Group. |
Share-based payments
Share-based payments | 12 Months Ended |
Dec. 31, 2021 | |
Share-based payments | 26 Share-based payments Share Options The Group has issued options over ordinary shares under the 2014 Midatech Pharma plc Enterprise Management Incentive Scheme, the Midatech Pharma plc 2016 U.S. Option Plan, which is a sub-plan of the approved UK plan, and unapproved share options awarded to non-UK or non-US staff. In addition, certain share options originally issued over shares in Midatech Limited under the Midatech Limited 2008 unapproved share option scheme or Midatech Limited 2013 approved Enterprise Incentive scheme were reissued in 2015 over shares in Midatech Pharma plc under the 2014 Midatech Pharma plc Enterprise Management Incentive Scheme. Exercise of an option is subject to continued employment. On 2 March 2020 a resolution was passed at a general meeting of shareholders of the Company to consolidate it ordinary shares on a one for 20 basis into new ordinary shares of 0.1p each in the capital of the Company. The following tables reflect the share consolidation in the comparative tables. Details of all share options granted under the Schemes are set out below: Date of grant At 1 January Granted in 2021 Expired 2021 Forfeited in At 31 December Exercise Price 13 September 2011 150 – (150 ) – – £ 83.80 20 April 2012 1,589 – – – 1,589 £ 83.80 9 May 2014 10,000 – – – 10,000 £ 1.50 30 June 2014 500 – – – 500 £ 1.50 31 October 2016 7,921 – – (890 ) 7,031 £ 53.60 19 December 2016 10,018 – – (2,062 ) 7,956 £ 24.20 15 December 2017 3,300 – – (2,100 ) 1,200 £ 9.20 24 April 2019 45,500 – – (33,000 ) 12,500 £ 1.46 2 October 2019 30,000 – – – 30,000 £ 1.05 17 April 2020 100,000 – – – 100,000 £ 0.24 17 June 2020 1,274,000 – – (410,500 ) 863,500 £ 0.202 15 July 2021 – 1,709,000 – (280,000 ) 1,429,000 £ 0.28 2 August 2021 – 50,000 – – 50,000 £ 0.27 1 September 2021 – 120,000 – – 120,000 £ 0.26 1,482,978 1,879,000 (150 ) (728,552 ) 2,633,276 Options exercisable at 31 December 2021 179,632 Weighted average exercise price of outstanding options at 31 December 2021 £ 0.538 Weighted average exercise price of options exercised in 2021 n/a Weighted average exercise price of options lapsed in 2021 £ 83.30 Weighted average exercise price of options forfeited in 2021 £ 0.447 Weighted average exercise price of options granted in 2021 £ 0.276 Weighted average remaining contractual life of outstanding options at 31 December 2021 9.0 Date of grant At 1 January Granted in 2020 Expired in 2020 Forfeited in At 31 December Exercise Price 1 April 2010 1,255 – (1,255 ) – – £ 80.00 20 August 2010 2,088 – (2,088 ) – – £ 83.80 13 September 2011 150 – – – 150 £ 83.80 20 April 2012 1,589 – – – 1,589 £ 83.80 9 May 2014 10,000 – – – 10,000 £ 1.50 30 June 2014 18,500 – (18,000 ) 500 £ 1.50 11 July 2014 100 – (50 ) (50 ) – £ 1.50 31 October 2016 16,271 – (850 ) (7,500 ) 7,921 £ 53.60 14 December 2016 400 – (400 ) – – £ 31.00 14 December 2016 500 – (500 ) – – £ 34.00 14 December 2016 2,000 – (2,000 ) – – £ 37.40 14 December 2016 1,625 – (1,625 ) – – £ 37.60 15 December 2016 4,600 – (4,600 ) – – £ 24.20 19 December 2016 22,391 – (1,562 ) (10,811 ) 10,018 £ 24.20 15 December 2017 29,560 – (13,310 ) (12,950 ) 3,300 £ 9.20 2 April 2018 997 – (997 ) – – £ 16.60 2 April 2018 4,500 – (4,500 ) – – £ 24.20 24 April 2019 169,500 – – (124,000 ) 45,500 £ 1.46 2 October 2019 50,000 – – (20,000 ) 30,000 £ 1.05 17 April 2020 – 100,000 – – 100,000 £ 0.24 17 June 2020 – 1,363,000 – (89,000 ) 1,274,000 £ 0.202 336,026 1,463,000 (33,737 ) (282,311 ) 1,482,978 Options exercisable at 31 December 2020 195,171 Weighted average exercise price of outstanding options at 31 December 2020 £ 0.835 Weighted average exercise price of options exercised in 2020 n/a Weighted average exercise price of options lapsed in 2020 £ 26.183 Weighted average exercise price of options forfeited in 2020 £ 3.648 Weighted average exercise price of options granted in 2020 £ 0.205 Weighted average remaining contractual life of outstanding options at 31 December 2020 9.2 Date of grant At 1 January Granted in 2019 Exercised in Forfeited in At 31 December Exercise Price 1 April 2010 1,255 – – – 1,255 £ 80.00 20 August 2010 2,088 – – – 2,088 £ 83.80 13 September 2011 150 – – – 150 £ 83.80 20 April 2012 1,589 – – – 1,589 £ 83.80 9 May 2014 10,000 – – – 10,000 £ 1.50 30 June 2014 21,500 – – (3,000 ) 18,500 £ 1.50 11 July 2014 100 – – – 100 £ 1.50 31 October 2016 2,500 – – (2,500 ) – £ 34.20 31 October 2016 23,411 – – (7,140 ) 16,271 £ 53.60 14 December 2016 400 – – – 400 £ 31.00 14 December 2016 500 – – – 500 £ 34.00 14 December 2016 2,000 – – – 2,000 £ 37.40 14 December 2016 1,625 – – – 1,625 £ 37.60 15 December 2016 4,600 – – – 4,600 £ 24.20 19 December 2016 35,866 – – (13,475 ) 22,391 £ 24.20 15 December 2017 45,885 – – (16,325 ) 29,560 £ 9.20 2 April 2018 997 – – – 997 £ 16.60 2 April 2018 4,500 – – – 4,500 £ 24.20 24 April 2019 – 219,000 – (49,500 ) 169,500 £ 1.46 2 October 2019 – 50,000 – – 50,000 £ 1.05 158,966 269,000 – (91,940 ) 336,026 Options exercisable at 31 December 2019 131,094 Weighted average exercise price of outstanding options at 31 December 2019 £ 8.48 Weighted average exercise price of options exercised in 2019 n/a Weighted average exercise price of options forfeited in 2019 £ 13.26 Weighted average exercise price of options granted in 2019 £ 1.38 Weighted average remaining contractual life of outstanding options at 31 December 2019 7.9 The following information is relevant in the determination of the fair value of options granted during the year 2021 under the equity share based remuneration schemes operated by the Group. July 2021 August 2021 September 2021 Number of options 1,709,000 50,000 120,000 Option pricing models used Black-Scholes Black-Scholes Black-Scholes Share price £ 0.2775 * £ 0.265 * £ 0.255 * Exercise price of options issued in year £ 0.2775 £ 0.265 £ 0.255 Contractual life 10 10 10 Expected life 5 5 5 Volatility 88.63 %** 88.59 %** 88.11 %** Expected dividend yield 0 % 0 % 0 % Risk free rate 0.38 % 0.26 % 0.32 % * The share price used in the determination of the fair value of the options granted in 2021 was the share price on the date of grant. ** Volatility was calculated with reference to the historic share price volatility of comparable companies measured over a five-year period. The following information is relevant in the determination of the fair value of options granted during the year 2020 under the equity share based remuneration schemes operated by the Group. April 2020 June 2020 Number of options 100,000 1,363,000 Option pricing models used Black-Scholes Black-Scholes Share price £ 0.24 * £ 0.213 * Exercise price of options issued in year £ 0.24 £ 0.202 Contractual life 10 10 Expected life 5 5 Volatility 84.76 %** 92.55 %** Expected dividend yield 0 % 0 % Risk free rate 0.11 % 0.10 % * The share price used in the determination of the fair value of the options granted in 2020 was the share price on the date of grant. ** Volatility was calculated with reference to the historic share price volatility of comparable companies measured over a five-year period. The following information is relevant in the determination of the fair value of options granted during the year 2019 under the equity share based remuneration schemes operated by the Group. April 2019 October 2019 Number of options 219,000 50,000 Option pricing models used Black-Scholes Black-Scholes Share price £ 2.30 * £ 1.126 * Exercise price of options issued in year £ 1.46 £ 1.05 Contractual life 10 10 Expected life 5 5 Volatility 75.3 %** 78.3 %** Expected dividend yield 0 % 0 % Risk free rate 0.85 % 0.26 % * The share price used in the determination of the fair value of the options granted in 2019 was the share price on the date of grant. ** Volatility was calculated with reference to the historic share price volatility of comparable companies measured over a five-year period. All other share options relate to the Midatech Limited 2008 unapproved share option scheme. Share Incentive Plan In April 2017 the Group set up the Midatech Pharma Share Incentive Plan (MPSIP). Under the MPSIP, Group employees and Directors can acquire ordinary shares in the Company via a salary sacrifice arrangement. Midatech grants matching shares for every share bought. In order to retain these shares, scheme participants must remain employed by the Group for three years from the date of acquisition. All shares purchased by the MPSIP are held by an Employee Benefit Trust that is not under the control of Midatech. Shares must be left in the plan for 5 years to qualify for full income tax and NIC relief. |
Capital commitments
Capital commitments | 12 Months Ended |
Dec. 31, 2021 | |
Capital Commitments | |
Capital commitments | 27 Capital commitments The Group had no capital commitments at 31 December 2021, 31 December 2020 and 31 December 2019. |
Related party transactions
Related party transactions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Related party transactions | 9. Related party transaction The Directors consider there to be no related party transactions during the periods reported other than Directors Remuneration. | 28 Related party transactions Trading Transactions The Directors consider BioConnection BV to be a related party by virtue of the fact that there is a common Director with the Company and the Director is identified as having significant influence over the entity. 2019 was the first year where this relationship existed. During the year Group companies entered into the following transactions with related parties who are not members of the Group. Schedule of related party transactions Purchase of good Amounts owed by related parties 2021 €’000 2020 €’000 2019 €’000 2021 €’000 2020 €£’000 2019 €’000 BioConnection BV – 296 18 – – 8 During 2019 Midatech Pharma (Espana) SL entered into a commercial contract with BioConnection BV in connection with the Group’s MTD201 program, this contract was subsequently terminated in 2020 as a result of the termination of the program. The Group has not made any allowances for bad or doubtful debts in respect of related party debtors nor has any guarantee been given or received during 2021,2020 or 2019 regarding related party transactions. |
Ultimate controlling party
Ultimate controlling party | 12 Months Ended |
Dec. 31, 2021 | |
Ultimate Controlling Party | |
Ultimate controlling party | 30 Ultimate controlling party The Directors do not consider that there is an ultimate controlling party. |
Results of Midatech Pharma (Esp
Results of Midatech Pharma (Espa?a) SL | 12 Months Ended |
Dec. 31, 2021 | |
Results Of Midatech Pharma Espaa Sl | |
Results of Midatech Pharma (Espa?a) SL | 31 Results of Midatech Pharma (España) SL Included within the Group Consolidated Statements of Comprehensive Income for the year to 31 December 2021 and 2020 are the results of the Group’s Spanish operation that was closed on 3 June 2020. The Group appointed a Liquidator to liquidate the company with documentation submitted to the Spanish Authorities in February 2021. Management assessed whether Midatech Pharma (España) SL should be accounted for as a discontinued operation under IFRS 5 and concluded that it did not meet the criteria as it did not meet the definition of a cash generating unit. The unaudited results of Midatech Pharma (España) SL for the year to 31 December are as follows: Schedule Of Unaudited Results Explanatory Year ended 31 December 2021 £’000 Year ended 31 December 2020 £’000 Grant revenue – 163 Total revenue – 163 Research and development costs – (2,820 ) Administrative costs – (1,146 ) Loss from operations – (3,803 ) Finance expense – (11 ) Loss before tax – (3,814 ) Taxation – (21 ) Loss from operations after tax – (3,835 ) |
Accounting policies (Policies)
Accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
General information | General information Midatech Pharma plc (the ‘Company’) is a company registered and domiciled in England and Wales. The Company was incorporated on 12 September 2014. The Company is a public limited company, which has been listed on the Alternative Investment Market (‘AIM’), which is a submarket of the London Stock Exchange, since 8 December 2014. In addition, since 4 December 2015 the Company has American Depository Receipts (‘ADRs’) registered with the US Securities and Exchange Commission (‘SEC’) and is listed on the NASDAQ Capital Market. The financial statements were approved and authorised for issue by the Board of Directors on 25 April 2022. |
Basis of preparation | Basis of preparation The Group was formed on 31 October 2014 when Midatech Pharma plc entered into an agreement to acquire the entire share capital of Midatech Limited and its wholly owned subsidiaries through the issue equivalent of shares in the Company which took place on 13 November 2014. The financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB). The principal accounting policies adopted in the preparation of the financial statements are set out below. The policies have been consistently applied to all the periods presented. On 2 March 2020 a resolution was passed at a general meeting of shareholders of the Company to consolidate its ordinary shares on a one for 20 basis into new ordinary shares of 0.1p each in the capital of the Company. At the same meeting a resolution was passed to change the ratio of the Company's American Depositary Receipts ("ADRs"). This changed from one ADR representing 20 Existing Ordinary Shares to one ADR representing five new ordinary shares. Comparative numbers of shares and share options/warrants and related exercise/issue prices and earnings per share reflect the impact of the March 2020 share consolidation. The consolidated financial statements have been prepared on a historical cost basis, except for the following item (refer to individual accounting policies for details): - Certain financial instruments – fair value through profit or loss. Certain prior period amounts have been reclassified to conform to the current period presentation with no impact on previously reported net loss or cash flows, and no material impact on financial position |
Adoption of new and revised standards | Adoption of new and revised standards New standards, interpretations and amendments effective from 1 January 2021 The Group in reviewed the new standards, interpretations and amendments effective from 1 January 2021 and deemed none were applicable to the annual financial statements for the year ended 31 December 2021. New standards, interpretations and amendments not yet effective There are a number of standards, amendments to standards, and interpretations which have been issued by the IASB that are effective in future accounting periods that the group has decided not to adopt early. The following amendments are effective for the period beginning 1 January 2022: • Onerous Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37); • Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16); • Annual Improvements to IFRS Standards 2018-2020 (Amendments to IFRS 1, IFRS 9, IFRS16 and IAS 41); and • References to Conceptual Framework (Amendments to IFRS 3). The following amendments are effective for the period beginning 1 January 2023: • Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2); • Definition of Accounting Estimates (Amendments to IAS 8); and • Deferred Tax Related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12). These new accounting standards and amendments are not expected to have a material impact on the Group. The Group does not expect any other standards issued by the IASB, but not yet effective, to have a material impact on the group. |
Basis for consolidation | Basis for consolidation The Group financial statements consolidate those of the parent company and all of its subsidiaries. The parent controls a subsidiary if it has power over the investee to significantly direct the activities, exposure, or rights to variable returns from its involvement with the investee, and the ability to use its power over the investee to affect the amount of the investor’s returns. All subsidiaries have a reporting date of 31 December. All transactions and balances between Group companies are eliminated on consolidation, including unrealised gains and losses on transactions between Group companies. Where unrealised losses on intra-Group asset sales are reversed on consolidation, the underlying asset is also tested for impairment from a Group perspective. Amounts reported in the financial statements of subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group. The consolidated financial statements consist of the results of the following entities: Schedule of entities Entity Summary description Midatech Pharma plc Ultimate holding company Midatech Limited Trading company Midatech Pharma (Espana) SL (formerly Midatech Biogune SL) Liquidated - 2021 PharMida AG Dormant Midatech Pharma (Wales) Limited (formerly Q Chip Limited) Trading company Midatech Pharma Pty Dissolved - 2020 |
Going concern | Going concern The Group and Company are subject to a number of risks similar to those of other development and early-commercial stage pharmaceutical companies. These risks include, amongst others, generation of revenue from the development portfolio and risks associated with research, development, testing and obtaining related regulatory approvals of our pipeline products. Ultimately, the attainment of profitable operations is dependent on future uncertain events which include obtaining adequate financing to fulfill our commercial and development activities and generating a level of revenue adequate to support our cost structure. We have experienced net losses and significant cash outflows from cash used in operating activities over the past years as we develops our portfolio. For the year ended December 31, 2021 the Company incurred a consolidated loss from operations of £5.5million and negative cash flows from operating activities of £6.0million. As of December 31, 2021 the Group had an accumulated deficit of £127.8million. Our future viability is dependent on our ability to raise cash from financing activities to finance our development plans until commercialisation, generate cash from operating activities and to successfully obtain regulatory approval to allow marketing of our development products. Our failure to raise capital as and when needed could have a negative impact on our financial condition and ability to pursue our business strategies. Our Group's consolidated financial statements have been presented on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As at 31 December 2021, we had cash and cash equivalents of £10.1million. We forecast we currently has enough cash to fund its planned operations into the first quarter of 2023. We have prepared cash flow forecasts and considered the cash flow requirement for the Company for the next three years including the period twelve months from the date of approval of the consolidated financial statements. These forecasts show that further financing will be required during the course of the next 12 months, assuming, inter alia, that certain development programs and other operating activities continue as currently planned. This requirement for additional financing represents a material uncertainty raises substantial doubt about our ability to continue as a going concern. As a result, our independent registered public accounting firm included an explanatory paragraph in its report on our financial statements as of and for the year ended December 31, 2021 with respect to this uncertainty. In addition, the global pandemic COVID-19 virus places increased uncertainty over the Directors’ forecasts. The restrictions that have been placed on the movement of people caused delays to some of the Group’s plans. The Directors have established a COVID-19 task force internally to monitor the impact of COVID-19 on the business and prioritize activities to minimize its continuing effect. In addition to utilizing the existing cash reserves, we and our advisors are evaluating a number of near-term funding options potentially available to us, including fundraising and the partnering of assets and technologies of the Company. After considering the uncertainties, we considered it is appropriate to continue to adopt the going concern basis in preparing these financial information. Our ability to continue as a going concern is dependent upon our ability to obtain additional capital and/or dispose of assets, for which there can be no assurance we will be able to do on a timely basis, on favorable terms or at all. |
Revenue | Revenue Revenue is accounted for in line with principles of IFRS 15 ‘Revenue from contracts with customers’ Revenue from licensing agreements The Group entered into a Licence Agreement during 2019. The licence consists of two distinct performance conditions, which is the grant of the license to use of its intellectual property (“IP”) and the supply of Product. After the Company has granted the license, and the Product is granted applicable marketing authorizations in the EU, the US, or the UK, France, Germany or Switzerland and China, there are no further obligations to participate in, or provide additional services to its customer. The transaction price for the grant of the license to use the Company’s IP comprises of fixed and variable payment streams and the grant of the license is considered to be a right to use IP. Upfront fees earned, are recognised as revenue at a point in time, upon transfer of control over the license to the licensee and the grant of the applicable marketing authorisation by the relevant statutory authority. For future royalty payments associated with a license, the Company applies the IFRS 15 exception for sales-based royalties and recognises the revenue only when the subsequent sale occurs. Supply of Goods Revenue from sales of goods to customer are recognised when all performance obligations are met. These criteria are considered to be met when the goods are delivered to the customer. Revenue represents the full list price of products shipped to wholesalers and other customers less product returns, discounts, rebates and other incentives based on the sales price. Supply of Services Revenue from the supply of services is subject to specific agreement. This is recognised over the contract term, proportionate to the progress in overall satisfaction of the performance obligations (the services performed by the Group), measured by cost incurred to date out of total estimate of costs. The primary input of substantially all work performed under these arrangements is labour. There is normally a direct relationship between costs incurred and the proportion of the contract performed to date. Where the Group supplies services to a client it generally bills an agreed percentage in advance of the commencement of any work and the balance on completion. Invoices to clients are payable under normal commercial terms. Grant revenue Where grant income is received, which is not a direct re-imbursement of related costs, revenue is recognised at the point at which the conditions have been met, this has been recognised within grant revenue. Where grants are received as a re-imbursement of directly related costs they are credited to research and development expense in the same period as the expenditure towards which they are intended to contribute. The Group previously received government loans that had a below-market rate of interest. These loans were recognised and measured in accordance with IFRS 9. The benefit of the below-market rate of interest was measured as the difference between the initial carrying value of the loan discounted at a market rate of interest and the proceeds received. The difference was held within deferred revenue as a government grant and released as a credit to grant income or to research and development expense in line with the expenditure to which it related. In a situation where the proceeds were invested in plant and equipment, the deferred revenue was credited to research and development within the income statement in line with the depreciation of the acquired asset. |
Business combinations and externally acquired intangible assets | Business combinations and externally acquired intangible assets Business combinations are accounted for using the acquisition method at the acquisition date, which is the date at which the Group obtains control over the entity. The cost of an acquisition is measured as the amount of the consideration transferred to the seller, measured at the acquisition date fair value, and the amount of any non-controlling interest in the acquiree. The Group measures goodwill initially at cost at the acquisition date, being: the fair value of the consideration transferred to the seller, plus; the amount of any non-controlling interest in the acquiree, plus; if the business combination is achieved in stages, the fair value of the existing equity interest in the acquiree re-measured at the acquisition date, less; the fair value of the net identifiable assets acquired and assumed liabilities. Acquisition costs incurred are expensed and included in administrative costs. Any contingent consideration to be transferred by the acquirer is recognised at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration, whether it is an asset or liability, will be recognised through the consolidated statement of comprehensive income. If the contingent consideration is classified as equity, it is not re-measured. An intangible asset, which is an identifiable non-monetary asset without physical substance, is recognised to the extent that it is probable that the expected future economic benefits attributable to the asset will flow to the Group and that its cost can be measured reliably. The asset is deemed to be identifiable when it is separable or when it arises from contractual or other legal rights. Externally acquired intangible assets other than goodwill are initially recognised at cost and subsequently amortised on a straight-line basis over their useful economic lives where they are in use. Goodwill is stated at cost less any accumulated impairment losses. The amounts ascribed to intangibles recognised on business combinations are arrived at by using appropriate valuation techniques. In-process research and development (‘IPRD’) programmes acquired in business combinations are recognised as assets even if subsequent expenditure is written off because the criteria specified in the policy for development costs below are not met. IPRD is subject to annual impairment testing until the completion or abandonment of the related project. No further costs are capitalised in respect of this IPRD unless they meet the criteria for research and development capitalisation as set out below. As per IFRS 3, once the research and development of each defined project is completed, the carrying value of the acquired IPRD is reclassified as a finite-lived asset and amortised over its useful life. The significant intangibles recognised by the Group and their useful economic lives are as follows: Schedule of intangibles assets useful economic lives Goodwill – Indefinite life IPRD – In process, not yet amortising IT and website costs – 4 years The useful economic life of IPRD will be determined when the in-process research projects are completed. |
Internally generated intangible assets (development costs) | Internally generated intangible assets (development costs) Expenditure on the research phase of an internal project is recognised as an expense in the period in which it is incurred. Development costs incurred on specific projects are capitalised when all the following conditions are satisfied: completion of the asset is technically feasible so that it will be available for use or sale; the Group intends to complete the asset and use or sell it; the Group has the ability to use or sell the asset and the asset will generate probable future economic benefits (over and above cost); there are adequate technical, financial and other resources to complete the development and to use or sell the asset; and the expenditure attributable to the asset during its development can be measured reliably. All internal activities related to the research and development of new projects are continuously monitored by the Directors. The Directors consider that the criteria to capitalise development expenditure are not met for a product prior to that product receiving regulatory approval in at least one country. Development expenditure not satisfying the above criteria, and expenditure on the research phase of internal projects are included in research and development costs recognised in the Consolidated Statement of Comprehensive Income as incurred. No projects have yet reached the point of capitalisation. |
Impairment of non-financial assets | Impairment of non-financial assets Assets that have an indefinite useful life, for example goodwill, or intangible assets not ready for use, such as IPRD, are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). The Group at 31 December 2021 had only one cash generating unit (2020: one, 2019: one), as set out in note 13. Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of impairment at each reporting date. Impairment charges are included in profit or loss, except, where applicable, to the extent they reverse gains previously recognised in other comprehensive income. An impairment loss recognised for goodwill is not reversed. |
Patents and trademarks | Patents and trademarks The costs incurred in establishing patents and trademarks are either expensed in accordance with the corresponding treatment of the development expenditure for the product to which they relate or capitalised if the development expenditure to which they relate has reached the point of capitalisation as an intangible asset. |
Foreign currency | Foreign currency Transactions entered into by subsidiary entities in a currency other than the currency of the primary economic environment, in which they operate, are recorded at the rates ruling when the transactions occur. Foreign currency monetary assets and liabilities are translated at the rates ruling at the reporting date. Exchange differences arising on the retranslation of unsettled monetary assets and liabilities are recognised immediately in profit or loss. The presentational currency of the Group is Pounds Sterling. Foreign subsidiaries use the local currencies of the country where the operate. On consolidation, the results of overseas operations are translated into Pounds Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations, including goodwill arising on the acquisition of those operations, are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income and accumulated in the foreign exchange reserve. Exchange differences recognised in the profit or loss of Group entities on the translation of long-term monetary items forming part of the Group’s net investment in the overseas operation concerned are reclassified to other comprehensive income and accumulated in the foreign exchange reserve on consolidation. On disposal of a foreign operation, the cumulative exchange differences recognised in the foreign exchange reserve relating to that operation up to the date of disposal are transferred to the consolidated statement of comprehensive income as part of the gain or loss on disposal. |
Financial assets and liabilities | Financial assets and liabilities Assets at amortised cost The Group does not have any financial assets which it would classify as fair value through profit or loss. Therefore, all financial assets are classed as assets at amortised cost as defined below. These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise principally through the provision of goods and services to customers (e.g. trade receivables), but also incorporate other types of contractual monetary asset. They are initially recognised at fair value plus transaction costs that are directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment. For impairment provisions, the Group applies the IFRS 9 simplified approach to measure expected credit losses using a lifetime expected credit loss provision for trade receivables to measure expected credit losses on a collective basis. Trade receivables are grouped based on a similar credit risk and ageing The expected loss rates are based on the Group’s historic credit losses experienced over the three-year period prior to the period end. The historic loss rates are then adjusted for current and forward-looking information on macroeconomic factors. The Group’s assets at amortised costs comprise trade and other receivables and cash and cash equivalents in the consolidated statement of financial position. Cash and cash equivalents include cash in hand, deposits held at call with original maturities of three months or less. Financial liabilities The Group classifies its financial liabilities into one of two categories, depending on the purpose for which the liability was acquired. Fair value through profit and loss (‘FVTPL’) The Group has outstanding warrants in the ordinary share capital of the company. The number of ordinary shares to be issued when exercised is fixed, however the exercise price is denominated in US Dollars being different to the functional currency of the parent company. Therefore, the warrants are classified as equity settled derivative financial liabilities recognised at fair value through the profit and loss account. The financial liability is valued using the either the Monte Carlo model or the Black-Scholes option pricing model. Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on re-measurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability and is included in the ‘finance income’ or ‘finance expense’ lines item in the income statement. Fair value is determined in the manner described in note 20. Other financial liabilities include the following items: Borrowings are initially recognised at fair value net of any transaction costs directly attributable to the issue of the instrument. Such interest-bearing liabilities are subsequently measured at amortised cost using the effective interest rate method, which ensures that any interest expense over the period to repayment is at a constant rate on the balance of the liability carried in the consolidated statement of financial position. Interest expense in this context includes initial transaction costs and premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding. Government loans received on favourable terms below market rate are discounted at a market rate of interest. The difference between the present value of the loan and the proceeds is held as a government grant within deferred revenue and is released to research and development expenditure or grant income in line with when the asset or expenditure is recognised in the income statement. Trade payables and other short-term monetary liabilities are initially recognised at fair value and subsequently carried at amortised cost using the effective interest method. |
Share capital | Share capital Financial instruments issued by the Group are classified as equity only to the extent that they do not meet the definition of a financial liability or financial asset. The Group has two classes of share in existence: ordinary shares of £ 0.001 deferred shares of £1 each are classified as equity instruments. On 2 March 2020 a resolution was passed at a general meeting of shareholders of the Company to consolidate its ordinary shares on a one for 20 basis into new ordinary shares of £0.001 each in the capital of the Company Comparative figures in these financial statements reflect the impact of the share consolidation. |
Retirement benefits: defined contribution schemes | Retirement benefits: defined contribution schemes Contributions to defined contribution pension schemes are charged to the consolidated statement of comprehensive income in the year to which they relate. |
Provisions | Provisions Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event; it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. |
Share-based payments | Share-based payments The Group operates a number of equity-settled, share-based compensation plans, under which the entity receives services from employees as consideration for equity instruments (options) of the Group. The fair value of the employee services received in exchange for the grant of the options is recognised as an expense. The total amount to be expensed is determined by reference to the fair value of the options granted: including any market performance conditions (including the share price); excluding the impact of any service and non-market performance vesting conditions (for example, remaining an employee of the entity over a specified time period); and including the impact of any non-vesting conditions (for example, the requirement for employees to save). Non-market performance and service conditions are included in assumptions about the number of options that are expected to vest. The total expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. Where vesting conditions are accelerated on the occurrence of a specified event, such as a change in control or initial public offering, such remaining unvested charge is accelerated In addition, in some circumstances employees may provide services in advance of the grant date and therefore the grant date fair value is estimated for the purposes of recognising the expense during the period between service commencement period and grant date. At the end of each reporting period, the Group revises its estimates of the number of options that are expected to vest based on the non-market vesting conditions. It recognises the impact of the revision to original estimates, if any, in the income statement, with a corresponding adjustment to equity. When the options are exercised, the Company issues new shares. The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium. |
Leases | Leases Identifying Leases The Group accounts for a contract, or a portion of a contract, as a lease when it conveys the right to use an asset for a period of time in exchange for consideration. Leases are those contracts that satisfy the following criteria: (a) There is an identified asset; (b) The Group obtains substantially all the economic benefits from use of the asset; and (c) The Group has the right to direct use of the asset. The Group considers whether the supplier has substantive substitution rights. If the supplier does have those rights, the contract is not identified as giving rise to a lease. In determining whether the Group obtains substantially all the economic benefits from use of the asset, the Group considers only the economic benefits that arise from the use of the asset, not those incidental to legal ownership or other potential benefits. In determining whether the Group has the right to direct use of the asset, the Group considers whether it directs how and for what purpose the asset is used throughout the period of use. If there are no significant decisions to be made because they are pre-determined due to the nature of the asset, the Group considers whether it was involved in the design of the asset in a way that predetermines how and for what purpose the asset will be used throughout the period of use. If the contract or portion of a contract does not satisfy these criteria, the Group applies other applicable IFRSs rather than IFRS 16. All leases are accounted for by recognising a right-of-use asset and a lease liability except for: Leases of low value assets; and Leases with a duration of 12 months or less. Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate determined by reference to the group’s incremental borrowing rate on commencement of the lease. Right of use assets are initially measured at the amount of the lease liability, reduced for any lease incentives received, and increased for lease payments made at or before commencement of the lease. The Group has taken advantage of the practical expedient to ignore the requirement to separate non-lease components and instead account for the entire contract as a single lease. Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made. Right-of-use assets are amortised on a straight-line basis over the remaining term of the lease. When the group revises its estimate of the term of any lease (because, for example, it re-assesses the probability of a lessee extension or termination option being exercised), it adjusts the carrying amount of the lease liability to reflect the payments to make over the revised term, which are discounted using a revised discount rate. An equivalent adjustment is made to the carrying value of the right-of-use asset, with the revised carrying amount being amortised over the remaining (revised) lease term. If the carrying amount of the right-of-use asset is adjusted to zero, any further reduction is recognised in profit or loss. In 2018 the Group entered into a sublease agreement to mitigate the impact of an otherwise onerous lease on the closure of its Abingdon site. This has been recognised as a lease receivable as the Group determined that the sublease meets the definition of a finance lease under the transitional provisions of IFRS16 and therefore, no right-of-use asset is recognised. During 2020 the lease and sub-lease ended. Nature of leasing activities (in the capacity as lessee) The group leased a number of properties in the jurisdictions from which it operates. In some jurisdictions it is customary for lease contracts to provide for payments to increase each year by inflation or and in others to be reset periodically to market rental rates. As at 31 December 2021 the Group had one property lease in place in the UK. |
Deferred taxation | Deferred taxation Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the consolidated statement of financial position differs from its tax base, except for differences arising on: the initial recognition of goodwill; the initial recognition of an asset or liability in a transaction which is not a business combination and at the time investments in subsidiaries and jointly controlled entities where the Group is able to control the timing of the reversal of the difference and it is probable that the difference will not reverse in the foreseeable future. Recognition of deferred tax assets is restricted to those instances where it is probable that taxable profit will be available against which the difference can be utilised. The amount of the asset or liability is determined using tax rates that have been enacted or substantively enacted by the reporting date and are expected to apply when the deferred tax assets or liabilities are recovered or settled. |
Property, plant and equipment | Property, plant and equipment Items of property, plant and equipment are initially recognised at cost. As well as the purchase price, cost includes directly attributable costs. Depreciation is provided on all items of property, plant and equipment so as to write off their carrying value over their expected useful economic lives. It is provided at the following rates: Schedule of depreciation rates of property, plant and equipment Fixtures and fittings – 20%- 25% per annum straight line Leasehold improvements – the shorter of 10% per annum straight line or over the lease term Computer equipment – 25% per annum straight line Laboratory equipment – 15% – 25% per annum straight line Right of use asset – Economic life of contractual relationship |
Finance income and expense (Tab
Finance income and expense (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Schedule of finance income | Schedule of finance income Six months unaudited £’000 Six months unaudited £’000 Finance income Interest received on bank deposits 6 - Gain on equity settled derivative financial liability 398 - Total finance income 404 - The gain on the equity settled derivative financial liability in 2022 arose as a result of the reduction in the Midatech share price. Six months unaudited £’000 Six months unaudited £’000 Finance expense Interest expense on lease liabilities 24 13 Other loans - 9 Loss on equity settled derivative financial liability - 134 Total finance expense 24 156 | Schedule of finance income 2021 £’000 2020 £’000 2019 £’000 Finance income Interest received on bank deposits – 1 8 Gain on equity settled derivative financial liability 936 – 484 Total finance income 936 1 492 2021 £’000 2020 £’000 2019 £’000 Finance expense Interest expense on lease liabilities 36 20 30 Other loans 8 14 67 Loss on equity settled derivative financial liability – 397 – Total finance expense 44 431 97 |
Taxation (Tables)
Taxation (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Schedule of components of income tax expense (benefit) | Schedule of components of income tax expense (benefit) Six months unaudited £’000 Six months unaudited £’000 Income tax credit 337 236 | Schedule of components of income tax expense (benefit) 2021 £’000 2020 £’000 2019 £’000 Current tax credit Current tax credited to the income statement 646 1,144 1,782 Taxation payable in respect of foreign subsidiary – (21 ) – Adjustment in respect of prior year – 158 3 Total current tax credit 646 1,281 1,785 Deferred tax credit Reversal of temporary differences – – – Total tax credit 646 1,281 1,785 |
Schedule of difference between actual tax charge and the standard rate of corporation tax | The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the United Kingdom applied to losses for the year are as follows: Schedule of difference between actual tax charge and the standard rate of corporation tax 2021 £’000 2020 £’000 2019 £’000 Loss before tax (6,106 ) (23,470 ) (11,870 ) Expected tax credit based on the standard rate of United Kingdom (1,160 ) (4,459 ) (2,255 ) Expenses not deductible for tax purposes 75 596 1,087 Income not taxable (2 ) (75 ) – Unrelieved tax losses and other deductions – – (114 ) Adjustment in respect of prior period – (158 ) (3 ) Surrender of tax losses for R&D tax refund (280 ) (491 ) (1,810 ) Foreign exchange differences – 1 Deferred tax not recognised 721 3,306 1,309 Total tax credited to the income statement (646 ) (1,281 ) (1,785 ) |
Loss per share (Tables)
Loss per share (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Schedule of loss per share | Schedule of loss per share Six months unaudited £’000 Six months unaudited £’000 Numerator Loss used in basic EPS and diluted EPS: (3,061 ) (3,154 ) Denominator Weighted average number of ordinary shares used in basic and diluted EPS: 98,476,551 63,296,377 Basic and diluted loss per share: (3 )p (5 )p | Schedule of loss per share 2021 £’000 2020 £’000 2019 £’000 Numerator Loss used in basic EPS and diluted EPS: Continuing operations (5,460 ) (22,189 ) (9,138 ) Discontinued operations – – (947 ) Denominator Weighted average number of ordinary shares used in basic EPS: 80,546,881 42,839,961 18,330,588 Basic and diluted loss per share: Continuing operations – pence (7 )p (52 )p (50 )p Discontinued operations – pence – – (5 )p |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Schedule of borrowings | Schedule of borrowings As at 30 £’000 As at 31 £’000 Current Lease liabilities 167 146 Total 167 146 Non-current Lease liabilities 546 620 Total 546 620 | Schedule of borrowings 2021 £’000 2020 £’000 2019 £’000 Current Lease liabilities 146 93 233 Government and research loans – 107 179 Total 146 200 412 Non-current Lease liabilities 620 60 912 Government and research loans – – 4,758 Total 620 60 5,670 |
Provision (Tables)
Provision (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Provision | ||
Schedule of provisions | Schedule of provisions As at 30 £’000 As at 31 £’000 Opening provision at 1 January 50 50 Provision released during the period (7 ) - 43 50 | Schedule of provisions 2021 £’000 2020 £’000 2019 £’000 Opening provision at 1 January 50 97 165 Utilisation of provision – (97 ) Provision recognised/(released) in the year – 50 (68 ) At 31 December 50 50 97 Less: non-current portion – (50 ) – Current portion 50 – 97 |
Derivative financial liabilit_2
Derivative financial liability – current (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Derivative Financial Liability Current | ||
Schedule of derivative financial liability | Schedule of derivative financial liability As at 30 £’000 As at 31 £’000 At 1 January 553 1,559 Transfer to share premium on exercise of warrants - (70 ) Gain recognised in finance income within the consolidated statement of comprehensive income (398 ) (936 ) 155 553 | Schedule of derivative financial liability 2021 £’000 2020 £’000 2019 £’000 Equity settled derivative financial liability At 1 January 1,559 664 – Warrants issued – 997 1,148 Transfer to share premium on exercise of warrants (70 ) (499 ) – Gain recognised in finance income within the consolidated statement (936 ) 397 (484 ) At 31 December 553 1,559 664 Equity settled derivative financial liability is a liability that is not to be settled for cash. |
The following table details the outstanding warrants as at 31 December and also the movement in the year: | Schedule of warrants outstanding At 1 Lapsed Exercised At 31 Lapsed Exercised At 30 June May 2020 grant 7,045,456 – (306,815) 6,738,641 – – 6,738,641 October 2019 grant 3,150,000 – – 3,150,000 – – 3,150,000 DARA Warrants 4,624 (544) – 4,080 – – 4,080 DARA Options 2,835 – – 2,835 (13) – 2,822 | The following table details the outstanding warrants as at 31 December and also the movement in the year: At 1 Granted Lapsed At 31 Granted Exercised At 31 Lapsed Exercised At 31 May – – – – 7,545,456 (2,500,000 ) 7,045,456 – (306,815 ) 6,738,641 October – 3,150,000 – 3,150,000 – – 3,150,000 – – 3,150,000 DARA Warrants 116,206 – (111,582 ) 4,624 – – 4,624 (544 ) – 4,080 DARA 6,167 – (3,332 ) 2,835 – – 2,835 – – 2,835 |
Schedule of consolidated financial assets and liabilities at fair value | Schedule of consolidated financial assets and liabilities at fair value Financial Fair value as at 30 June 2022 Fair value as 2021 Fair value Valuation Significant unobservable input(s) Relationship of unobservable Equity settled financial derivative liability – May 2020 Warrants £146,000 £467,000 Level 3 Monte Carlo simulation model Volatility rate of 105% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 3.39 years determined using the remaining life of the share options. The shorter the expected life the lower the fair value. Risk-free rate between a range of 1.68% determined using the expected life assumptions. The higher the risk-free rate the higher the fair value. Equity settled financial derivative liability – October 2019 Warrants £9,000 £86,000 Level 3 Monte Carlo simulation model Volatility rate of 108.5% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 3.00 years determined using the remaining life of the share options. The shorter the expected life the lower the fair value. Risk-free rate between a range of 1.68% determined using the expected life assumptions. The higher the risk-free rate the higher the fair value. Equity settled financial derivative liability – DARA Bioscience warrants and options – – Level 3 Black-Scholes option pricing model Volatility rate of 108.5%% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 0.4 years determined using the remaining life of the share options The shorter the expected life the lower the fair value. Risk-free rate between a range of 1.68% determined using the expected life assumptions. The higher the risk-free rate the higher the fair value. Total £155,000 £553,000 | The fair value of the Group’s derivative financial liability is measured at fair value on a recurring basis. The following table gives information about how the fair value of this financial liability is determined, additional disclosure is given in note 20: Schedule of consolidated financial assets and liabilities at fair value Financial Fair value as Fair Valuation Significant unobservable input(s) Relationship of Equity settled £ 467,000 Level 3 Monte Carlo simulation model Volatility rate of 95.0% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 3.88 years determined using the remaining life of the share options. The shorter the expected life the lower the fair value. Risk-free rate of 0.31% determined using the expected life assumptions. The higher the risk-free rate Equity settled £ 86,000 Level 3 Monte Carlo simulation model Volatility rate of 85.0% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 3.5 years determined using the remaining life of the share options. The shorter the expected life the lower the fair value. Risk-free rate of 0.71% determined using the expected life assumptions. The higher the risk-free rate Equity settled – Level 3 Black-Scholes option pricing model Volatility rate of 85.0% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.10 and 0.9 years determined using the remaining life of the share options. The shorter the expected life Risk-free rate of 0.71% determined using the expected life assumptions. The higher the risk-free rate Total £ 553,000 Financial Fair value as Fair Valuation Significant unobservable input(s) Relationship of Equity settled £ 1,187,000 Level 3 Monte Carlo simulation model Volatility rate of 105.0% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 4.49 years determined using the remaining life of the share options. The shorter the expected life the lower the fair value. Risk-free rate of 0.07% determined using the expected life assumptions. The higher the risk-free rate Equity settled £ 372,000 Level 3 Monte Carlo simulation model Volatility rate of 105.0% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 4.888 years determined using the remaining life of the share options. The shorter the expected life the lower the fair value. Risk-free rate of 0.08% determined using the expected life assumptions. The higher the risk-free rate Equity settled – Level 3 Black-Scholes option pricing model Volatility rate of 105.0% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 1.0 and 1.9 years determined using the remaining life of the share options. The shorter the expected life Risk-free rate of 0.8% determined using the expected life assumptions. The higher the risk-free rate Total £ 1,559,000 Financial Fair value Fair value Valuation Significant unobservable input(s) Relationship of Equity settled £ 664,000 Level 3 Monte Carlo simulation model Volatility rate of 78.4% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 5.68 years determined using the remaining life of the share options. The shorter the expected life the lower the fair value. Risk-free rate between a range of 0.59% and 1.69 % determined using the expected life assumptions. The higher the risk-free rate Equity settled – Level 3 Black-Scholes option pricing model Volatility rate of 78.3% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 2.0 and 2.9 years determined using the remaining life of the share options. The shorter the expected life Risk-free rate between a range of 0.0% and 0.26 % determined using the expected life assumptions. The higher the risk-free rate Total £ 664,000 |
Share capital (Tables)
Share capital (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Schedule of detailed information about share capital | Schedule of detailed information about share capital Authorised, allotted and As at 30 June Number As at 30 June £ As at 31 Number As at 31 £ Ordinary shares of 98,493,413 98,493 98,468,387 98,468 Deferred shares of £1 each 1,000,001 1,000,001 1,000,001 1,000,001 Total 1,098,494 1,098,469 | Schedule of detailed information about share capital Authorised, allotted and fully 2021 Number 2021 £ 2020 Number 2020 £ 2019 Number 2019 £ At 31 December Ordinary shares of 98,468,387 98,468 63,073,852 63,074 23,494,981 23,495 Deferred shares of £1 each 1,000,001 1,000,001 1,000,001 1,000,001 1,000,001 1,000,001 Total 1,098,469 1,063,075 1,023,496 |
Schedule Of Ordinary and Deferred Shares | Schedule Of Ordinary and Deferred Shares 2022 Ordinary Number Deferred Number Share £ Total £’000 At 1 January 2022 98,468,387 1,000,001 106,517 22 March 2022 Exercise of warrants 26 – 10.000 – 3 May 2022 Share issue to SIPP trustee* 25,000 – 0.001 – At 30 June 2022 (unaudited) 98,493,413 1,000,001 106,517 2021 At 1 January 2021 63,073,852 1,000,001 96,426 19 February 2021 Exercise of warrants 306,815 – 0.298 91 6 July 2021 Placing 35,087,720 – 0.285 10,000 At 31 December 2021 98,468,387 1,000,001 106,517 * Share issued to Midatech Pharma Plc employee benefit trust | Schedule Of Ordinary and Deferred Shares Ordinary Shares Number Deferred Shares Number Share £ Total £’000 At 1 January 2019 3,059,207 1,000,001 69,870 2019 26 February 2019 Subscription, Placing and Open Offer 17,410,774 0.77 13,406 8 October 2019 Share issue to SIPP trustee (see note 26) 25,000 0.001 – 29 October 2019 Registered Direct Offering 3,000,000 0.7874 2,362 At 31 December 2019 23,494,981 1,000,001 85,638 2020 18 May 2020 Placing & Registered Direct Offering 15,757,576 0.27 4,255 27 July 2020 Placing 21,296,295 0.27 5,750 19 August 2020 Exercise of warrants 2,500,000 783 30 September 2020 Share issue to SIPP trustee (see note 26) 25,000 0.001 – At 31 December 2020 63,073,852 1,000,001 96,426 19 February 2021 Exercise of warrants 306,815 0.298 91 6 July 2021 Placing 35,087,720 0.285 10,000 At 31 December 2021 98,468,387 1,000,001 106,517 |
Accounting policies (Tables)
Accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of entities | The consolidated financial statements consist of the results of the following entities: Schedule of entities Entity Summary description Midatech Pharma plc Ultimate holding company Midatech Limited Trading company Midatech Pharma (Espana) SL (formerly Midatech Biogune SL) Liquidated - 2021 PharMida AG Dormant Midatech Pharma (Wales) Limited (formerly Q Chip Limited) Trading company Midatech Pharma Pty Dissolved - 2020 |
Schedule of intangibles assets useful economic lives | The significant intangibles recognised by the Group and their useful economic lives are as follows: Schedule of intangibles assets useful economic lives Goodwill – Indefinite life IPRD – In process, not yet amortising IT and website costs – 4 years |
Schedule of depreciation rates of property, plant and equipment | Depreciation is provided on all items of property, plant and equipment so as to write off their carrying value over their expected useful economic lives. It is provided at the following rates: Schedule of depreciation rates of property, plant and equipment Fixtures and fittings – 20%- 25% per annum straight line Leasehold improvements – the shorter of 10% per annum straight line or over the lease term Computer equipment – 25% per annum straight line Laboratory equipment – 15% – 25% per annum straight line Right of use asset – Economic life of contractual relationship |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of revenue by geographical analysis | Geographical analysis of revenue by destination of customer Schedule of revenue by geographical analysis 2021 £’000 2020 £’000 2019 £’000 Revenue from continuing operations: United Kingdom – 4 197 Belgium 578 114 – Rest of Europe – – 55 Rest of the World – 62 60 578 180 312 |
Schedule of commercial segment | Schedule of commercial segment 2021 £’000 2020 £’000 2019 £’000 Customer A 100 % 64 % 63 % Customer B – 34 % 19 % Customer C – 2 % 18 % |
Schedule of segment | Segmented results for the year ended 31 December 2021 Schedule of segment Pipeline R&D £’000 Revenue 578 Total revenue 578 Other income 24 Research and development costs (excluding depreciation) (4,291 ) Administrative costs (excluding depreciation) (2,906 ) Depreciation (403 ) Loss from operations (6,998 ) Finance income 936 Finance expense (44 ) Loss before tax (6,106 ) Taxation 646 Loss for the year from continuing operations (5,460 ) Depreciation in year allocated as follows: Depreciation £’000 Research and development costs 363 Administrative costs 40 Total 403 Segmented results for the year ended 31 December 2020 Pipeline R&D £’000 Revenue 180 Grant revenue 163 Total revenue 343 Other income 12 Research and development costs (excluding depreciation and amortisation) (4,886 ) Administrative costs (excluding depreciation and amortisation) (4,923 ) Depreciation (1,207 ) Amortisation (10 ) Impairment (12,369 ) Loss from operations (23,040 ) Finance income 1 Finance expense (431 ) Loss before tax (23,470 ) Taxation 1,281 Loss for the year from continuing operations (22,189 ) Depreciation and amortisation in year allocated as follows: Depreciation £’000 Amortisation Research and development costs 1,174 8 Administrative costs 33 2 Total 1,207 10 Segmented results for the year ended 31 December 2019 Pipeline R&D £’000 Commercial £’000 Consolidated £’000 Revenue 312 – 312 Grant revenue 362 – 362 Total revenue 674 – 674 Other income 15 – 15 Research and development costs (excluding depreciation and (6,624 ) – (6,624 ) Distribution costs, sales and marketing (323 ) – (323 ) Administrative costs (excluding depreciation) (3,775 ) – (3,775 ) Loss from discontinued operations, net of tax – (947 ) (947 ) Depreciation (1,282 ) – (1,282 ) Amortisation (3 ) – (3 ) Loss from operations (11,318 ) (947 ) (12,265 ) Finance income 492 – 492 Finance expense (97 ) – (97 ) Loss before tax (10,923 ) (947 ) (11,870 ) Taxation 1,785 – 1,785 Loss for the year (9,138 ) (947 ) (10,085 ) Loss from continuing operations (9,138 ) Loss from discontinued operations (947 ) All material additions to non-current assets in 2021, 2020 and 2019 were in the Pipeline R&D segment. |
Schedule of non-current assets by location of assets | Non-current assets by location of assets Schedule of non-current assets by location of assets 2021 £’000 2020 £’000 2019 £’000 United Kingdom 1,152 542 12,775 Spain – – 4,383 1,152 542 17,158 |
Discontinued operations (Tables
Discontinued operations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of post-tax loss on disposal of discontinued operations | The post-tax loss on disposal of discontinued operations was determined as follows: Schedule of post-tax loss on disposal of discontinued operations Result of discontinued operations 2021 £’000 2020 £’000 2019 £’000 Revenue – – – Expenses other than finance costs – – (947 ) Finance costs – – – Impairment – – – Loss from discontinued operations before tax – – (947 ) Taxation – – – Loss on disposal of discontinued operations – – – Loss for the year from discontinued operations after tax – – (947 ) |
Schedule of amounts related to discontinued operations | Schedule of amounts related to discontinued operations Statement of cash flows 2021 £’000 2020 £’000 2019 £’000 The statement of cash flows includes the following amounts relating to Operating activities – – – Investing activities – – (947 ) Financing activities – – – Net cash flow from discontinued operations – – (947 ) |
Loss from operations (Tables)
Loss from operations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of loss from operations | Schedule of loss from operations 2021 £’000 2020 £’000 2019 £’000 Loss from operations is stated after charging/(crediting): Depreciation of property, plant and equipment – From continuing operations 213 1,089 979 Depreciation of right of use asset – From continuing operations 190 118 303 Amortisation of intangible assets – product and marketing rights – – From continuing operations – 10 3 Impairment of intangible assets – 12,369 – Fees payable to the Company’s auditor for the audit of the parent 88 87 110 Fees payable to the Company’s subsidiary auditors for the audits of the 44 43 48 Fees payable to the Company’s auditor for: – Other services – 7 66 Fees payable to the Company’s previous auditor for the audit of the – 15 – Fees payable to the Company’s previous auditor for: - Other services 41 171 – Foreign exchange(gain)/loss 12 96 131 Profit/(Loss) (42 ) (226 ) – Equity settled share-based payment * 89 (404 ) (34 ) |
Staff costs (Tables)
Staff costs (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Staff Costs | |
Schedule of staff costs | Staff costs (including Directors), for continuing and discontinued operations, comprise: Schedule of staff costs 2021 £’000 2020 £’000 2019 £’000 Wages and salaries 1,354 2,727 2,762 Defined contribution pension cost (note 25) 71 75 90 Social security contributions and similar taxes 152 397 565 Share-based payment charge/(credit) 89 (404 ) (34 ) Staff costs gross 1,666 2,795 3,383 Continuing operations 1,666 2,795 3,383 Discontinued operations – – – Staff costs 1,666 2,795 3,383 |
Schedule for average number of employed staff | The average number of staff employed by the Group during the financial year, for continuing and discontinued operations, amounted to: Schedule for average number of employed staff 2021 2020 2019 Research and development 15 31 52 General and administration 5 9 13 20 40 65 |
Schedule of Management Personnel Compensation | Schedule of Management Personnel Compensation 2021 £’000 2020 £’000 2019 £’000 Short term employee benefits 658 472 812 Wages and salaries – – 656 Payments made to third parties – – 82 Social security contributions and similar taxes – – 72 Benefits in kind – – 2 Post-employment benefits 27 24 42 Defined contribution pension cost – – 42 Termination benefits – 30 – Share-based payment 61 (472 ) (58 ) Total 746 54 796 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of detailed information about property, plant and equipment | Schedule of detailed information about property, plant and equipment Fixtures and fittings £’000 Leasehold improvements £’000 Computer equipment £’000 Laboratory equipment £’000 Right of use asset £’000 Total £’000 Cost At 1 January 2019 253 2,013 383 3,651 – 6,300 Adoption of IFRS 16 Leases – – – – 395 395 Additions 4 137 23 223 822 1,209 Effect of modification to lease terms – – – – (82 ) (82 ) Exchange differences (9 ) (112 ) (3 ) (136 ) (11 ) (271 ) At 31 December 2019 248 2,038 403 3,738 1,124 7,551 Additions – 58 16 135 – 209 Effect of modification to lease terms – – – – (678 ) (678 ) Disposal (202 ) (2,184 ) (185 ) (2,323 ) (316 ) (5,210 ) Exchange differences 7 92 2 112 58 271 At 31 December 2020 53 4 236 1,662 188 2,143 Additions 57 53 16 194 720 1,040 Transfer – – – (155 ) 155 – Effect of modification to lease terms – – – – (24 ) (24 ) Disposal (50 ) (4 ) (10 ) (138 ) (164 ) (366 ) At 31 December 2021 60 53 242 1,563 875 2,793 Fixtures and fittings £’000 Leasehold improvements £’000 Computer equipment £’000 Laboratory equipment £’000 Right of use asset £’000 Total £’000 Accumulated depreciation At 1 January 2019 241 1,485 265 2,326 – 4,317 Charge for the year 2 400 70 507 303 1,282 Exchange differences (8 ) (91 ) (3 ) (93 ) (7 ) (202 ) At 31 December 2019 235 1,794 332 2,740 296 5,397 Charge for the year 9 310 50 720 118 1,207 Disposals (202 ) (2,183 ) (185 ) (2,300 ) (316 ) (5,186 ) Exchange differences 7 81 2 79 14 183 At 31 December 2020 49 2 199 1,239 112 1,601 Transfer – – – (74 ) 74 – Charge for the year 8 5 22 178 190 403 Disposals (50 ) (3 ) (8 ) (138 ) (164 ) (363 ) At 31 December 2021 7 4 213 1,205 212 1,641 Net book value At 31 December 2021 53 49 29 358 663 1,152 At 31 December 2020 4 2 37 423 76 542 At 31 December 2019 13 244 71 998 828 2,154 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of market rental rates | Schedule of market rental rates Lease Liabilities 2021 £’000 2020 £’000 2019 £’000 At 1 January 76 907 546 Additions 720 – 822 Transfer 77 – – Effect of modification to lease terms (24 ) (788 ) (82 ) Interest expenses 29 15 24 Lease payments (112 ) (105 ) (391 ) Exchange differences – 47 (12 ) At 31 December 766 76 907 |
Low value leases expensed in year | Low value leases expensed in year 2021 £’000 2020 £’000 2019 £’000 Low value leases expensed 2 10 29 Total 2 10 29 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of reconciliation of changes in intangible assets and goodwill | Schedule of reconciliation of changes in intangible assets and goodwill In-process £’000 Goodwill £’000 IT/Website £’000 Total £’000 Cost At 1 January 2019 13,378 2,291 28 15,697 Additions – – 9 9 Foreign exchange – – (2 ) (2 ) At 31 December 2019 13,378 2,291 35 15,704 Disposal – – (36 ) (36 ) Foreign exchange – – 1 1 At 31 December 2020 13,378 2,291 – 15,669 At 31 December 2021 13,378 2,291 – 15,669 In-process research and development £’000 Goodwill £’000 IT/Website Costs £’000 Total £’000 Accumulated amortisation and impairment At 1 January 2019 3,300 – 23 3,323 Amortisation charge for the year – – 3 3 Foreign exchange – – (1 ) (1 ) At 31 December 2019 3,300 – 25 3,325 Amortisation charge for the year – – 10 10 Disposal – – (36 ) (36 ) Impairment 10,078 2,291 – 12,369 Foreign exchange – – 1 1 At 31 December 2020 13,378 2,291 – 15,669 At 31 December 2021 13,378 2,291 – 15,669 Net book value At 31 December 2021 – – – – At 31 December 2020 – – – – At 31 December 2019 10,078 2,291 10 12,379 |
Schedule of individual intangible assets | The individual intangible assets, excluding goodwill, which are material to the financial statements are: Schedule of individual intangible assets Carrying amount Remaining amortisation 2021 £’000 2020 £’000 2019 £’000 2021 (years) 2020 (years) 2019 (years) Midatech Pharma (Wales) Limited acquired IPRD – – 9,300 n/a n/a n/a in process MTX110 acquired IPRD – – 778 n/a n/a n/a in process – – 10,078 |
Impairment testing (Tables)
Impairment testing (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of cash generating unit | Details of goodwill and IPRD allocated to the acquired cash generating unit and the valuation basis are as follows: Schedule of cash generating unit Indefinite lived IPRD carrying amount Goodwill carrying amount Name 2021 £’000 2020 £’000 2019 £’000 2021 £’000 2020 £’000 2019 £’000 Valuation Basis CGU – Midatech Pharma (Wales) Ltd – – 9,300 – – 2,291 Value in use |
Schedule of key assumptions used | The key assumptions used in the valuation model examining the MPW Ltd cash generating unit include the following: Schedule of key assumptions used Assumptions 2021 2020 2019 Pre-tax discount rate n/a n/a 18.4 % Cumulative probability of success of projects n/a n/a 81 % |
Schedule of key assumptions used for carrying value and recoverable amount | If any one of the following changes were made to the above key assumptions, the carrying value and recoverable amount would be equal. Schedule of key assumptions used for carrying value and recoverable amount Assumptions 2021 2020 2019 Pre-tax discount rate for all projects n/a n/a increase to 21 Cumulative probability of success of project n/a n/a 59 % |
Subsidiaries (Tables)
Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of subsidiaries | The subsidiaries of Midatech Pharma plc, all of which are 100% owned, either directly or through subsidiaries where indicated, and have been included in these financial statements in accordance with the details set out in the basis of preparation and basis of consolidation note 1, are as follows: Schedule of subsidiaries Name Registered Office Nature of Business Notes Midatech Limited 1 Caspian Point, Caspian Way, Cardiff, CF10 4DQ Trading company PharMida AG c/o Kellerhals, Hirschgässlein 11, 4051 Basel, Switzerland Dormant (a) (b) Midatech Pharma (Wales) 1 Caspian Point, Caspian Way, Cardiff, CF10 4DQ Trading company Notes: (a) Wholly owned subsidiary of Midatech Limited. (b) PharMida AG became dormant in January 2016. (c) Midatech Pharma PTY was incorporated on 16 February 2015 and dissolved November 2020. |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of trade and other receivables | Schedule of trade and other receivables 2021 £’000 2020 £’000 2019 £’000 Trade receivables 33 95 22 Prepayments 607 258 151 Other receivables 394 219 3,444 Total trade and other receivables 1,034 572 3,617 Less: non-current portion (rental deposit and on bond) – – (2,625 ) Current portion 1,034 572 992 |
Cash and cash equivalents and_2
Cash and cash equivalents and cash flow supporting notes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of cash and cash equivalents | Cash and cash equivalents for purposes of the consolidated statement of cash flows comprises: Schedule of cash and cash equivalents 2021 £’000 2020 £’000 2019 £’000 Cash at bank available on demand 10,057 7,546 10,928 |
Schedule of cash inflows from an equity financing transaction | During 2021, 2020 and 2019, cash inflows arose from equity financing transactions, included within financing activities on the face of the cash flow statement. As part of the equity transaction in July 2021 warrants to the value of £Nil (May 2020: £ 1.0m 1.1m Schedule of cash inflows from an equity financing transaction 2021 £’000 2020 £’000 2019 £’000 Gross proceeds 10,091 10,792 15,767 Transaction costs (1,056 ) (1,050 ) (1,659 ) Proceeds from issuing shares 9,035 9,742 14,108 |
Schedule of changes in bank loan liabilities | The following changes in loans and borrowings arose as a result of financing activities during the year: Schedule of changes in bank loan liabilities Non-current £’000 Current £’000 Total £’000 At 1 January 2021 60 200 260 Cash flows – (215 ) (215 ) Non-cashflows: Foreign Exchange – (4 ) (4 ) New leases 715 5 720 Effect of modification to lease term – IFRS 16 – (24 ) (24 ) Loans and borrowings classified as non-current 31 December 2020 (178 ) 178 – Interest accruing in period 23 6 29 At 31 December 2021 620 146 766 Non-current £’000 Current £’000 Total £’000 At 1 January 2020 5,670 412 6,082 Cash flows (6,182 ) (258 ) (6,440 ) Non-cashflows: Foreign Exchange 252 23 275 Fair value changes 1,176 – 1,176 Effect of modification to lease term – IFRS 16 (877 ) 89 (788 ) Reclassification portion government loan to non-current 51 (51 ) – Interest accruing in period (30 ) (15 ) (45 ) At 31 December 2020 60 200 260 Non-current £’000 Current £’000 Total £’000 At 1 January 2019 884 368 1,252 Cash flows 5,575 (1,027 ) 4,548 Non-cashflows: Foreign Exchange (42 ) (29 ) (71 ) Fair value changes (1,139 ) – (1,139 ) Adoption of IFRS16 leases 163 383 546 Effect of modification to lease term – IFRS 16 – (82 ) (82 ) New leases 805 95 900 Loans and borrowings classified as non-current 31 December 2018 (685 ) 685 – Transfer to grant income – (14 ) (14 ) Interest accruing in period 108 34 142 At 31 December 2019 5,670 412 6,082 |
Trade and other payables (Table
Trade and other payables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of trade and other payables | Schedule of trade and other payables Current 2021 £’000 2020 £’000 2019 £’000 Trade payables 485 337 725 Other payables 5 26 13 Accruals 546 768 1,765 Total financial liabilities, excluding loans and borrowings, 1,036 1,131 2,503 Tax and social security 56 31 86 Deferred revenue and government grants – 68 1,905 Total trade and other payables 1,092 1,230 4,494 |
Provisions (Tables)
Provisions (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Schedule Of Provisions | ||
Schedule of provisions | Schedule of provisions As at 30 £’000 As at 31 £’000 Opening provision at 1 January 50 50 Provision released during the period (7 ) - 43 50 | Schedule of provisions 2021 £’000 2020 £’000 2019 £’000 Opening provision at 1 January 50 97 165 Utilisation of provision – (97 ) Provision recognised/(released) in the year – 50 (68 ) At 31 December 50 50 97 Less: non-current portion – (50 ) – Current portion 50 – 97 |
Financial instruments _ risk _2
Financial instruments – risk management (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Schedule of consolidated derivative financial instruments | Schedule of consolidated derivative financial instruments 2021 £’000 2020 £’000 2019 £’000 Cash and cash equivalents 10,057 7,546 10,928 Trade receivables 33 95 22 Other receivables – – 2,625 Total financial assets 10,090 7,641 13,575 Financial liabilities – amortised cost 2021 £’000 2020 £’000 2019 £’000 Trade payables 485 337 725 Other payables 5 26 13 Accruals 546 768 1,765 Borrowings 766 260 6,082 Total financial liabilities – amortised cost 1,802 1,391 8,585 Financial liabilities – fair value through profit and loss – current 2021 £’000 2020 £’000 2019 £’000 Equity settled derivative financial liability 553 1,559 664 | |
Schedule of consolidated financial assets and liabilities at fair value | Schedule of consolidated financial assets and liabilities at fair value Financial Fair value as at 30 June 2022 Fair value as 2021 Fair value Valuation Significant unobservable input(s) Relationship of unobservable Equity settled financial derivative liability – May 2020 Warrants £146,000 £467,000 Level 3 Monte Carlo simulation model Volatility rate of 105% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 3.39 years determined using the remaining life of the share options. The shorter the expected life the lower the fair value. Risk-free rate between a range of 1.68% determined using the expected life assumptions. The higher the risk-free rate the higher the fair value. Equity settled financial derivative liability – October 2019 Warrants £9,000 £86,000 Level 3 Monte Carlo simulation model Volatility rate of 108.5% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 3.00 years determined using the remaining life of the share options. The shorter the expected life the lower the fair value. Risk-free rate between a range of 1.68% determined using the expected life assumptions. The higher the risk-free rate the higher the fair value. Equity settled financial derivative liability – DARA Bioscience warrants and options – – Level 3 Black-Scholes option pricing model Volatility rate of 108.5%% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 0.4 years determined using the remaining life of the share options The shorter the expected life the lower the fair value. Risk-free rate between a range of 1.68% determined using the expected life assumptions. The higher the risk-free rate the higher the fair value. Total £155,000 £553,000 | The fair value of the Group’s derivative financial liability is measured at fair value on a recurring basis. The following table gives information about how the fair value of this financial liability is determined, additional disclosure is given in note 20: Schedule of consolidated financial assets and liabilities at fair value Financial Fair value as Fair Valuation Significant unobservable input(s) Relationship of Equity settled £ 467,000 Level 3 Monte Carlo simulation model Volatility rate of 95.0% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 3.88 years determined using the remaining life of the share options. The shorter the expected life the lower the fair value. Risk-free rate of 0.31% determined using the expected life assumptions. The higher the risk-free rate Equity settled £ 86,000 Level 3 Monte Carlo simulation model Volatility rate of 85.0% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 3.5 years determined using the remaining life of the share options. The shorter the expected life the lower the fair value. Risk-free rate of 0.71% determined using the expected life assumptions. The higher the risk-free rate Equity settled – Level 3 Black-Scholes option pricing model Volatility rate of 85.0% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.10 and 0.9 years determined using the remaining life of the share options. The shorter the expected life Risk-free rate of 0.71% determined using the expected life assumptions. The higher the risk-free rate Total £ 553,000 Financial Fair value as Fair Valuation Significant unobservable input(s) Relationship of Equity settled £ 1,187,000 Level 3 Monte Carlo simulation model Volatility rate of 105.0% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 4.49 years determined using the remaining life of the share options. The shorter the expected life the lower the fair value. Risk-free rate of 0.07% determined using the expected life assumptions. The higher the risk-free rate Equity settled £ 372,000 Level 3 Monte Carlo simulation model Volatility rate of 105.0% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 4.888 years determined using the remaining life of the share options. The shorter the expected life the lower the fair value. Risk-free rate of 0.08% determined using the expected life assumptions. The higher the risk-free rate Equity settled – Level 3 Black-Scholes option pricing model Volatility rate of 105.0% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 1.0 and 1.9 years determined using the remaining life of the share options. The shorter the expected life Risk-free rate of 0.8% determined using the expected life assumptions. The higher the risk-free rate Total £ 1,559,000 Financial Fair value Fair value Valuation Significant unobservable input(s) Relationship of Equity settled £ 664,000 Level 3 Monte Carlo simulation model Volatility rate of 78.4% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 5.68 years determined using the remaining life of the share options. The shorter the expected life the lower the fair value. Risk-free rate between a range of 0.59% and 1.69 % determined using the expected life assumptions. The higher the risk-free rate Equity settled – Level 3 Black-Scholes option pricing model Volatility rate of 78.3% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 2.0 and 2.9 years determined using the remaining life of the share options. The shorter the expected life Risk-free rate between a range of 0.0% and 0.26 % determined using the expected life assumptions. The higher the risk-free rate Total £ 664,000 |
Schedule of foreign exchange risk | The table below shows analysis of the Pounds Sterling equivalent of year-end cash and cash equivalent balances by currency: Schedule of foreign exchange risk 2021 £’000 2020 £’000 2019 £’000 Cash and cash equivalents: Pounds Sterling 10,057 7,247 3,153 US Dollar – 120 2,021 Euro – 179 5,750 Other – – 4 Total 10,057 7,546 10,928 The table below shows the foreign currency exposure that gives rise to net currency gains and losses recognised in the consolidated statement of comprehensive income. As at 31 December, these exposures were as follows: 2021 £’000 2020 £’000 2019 £’000 Net Foreign Currency Assets/(Liabilities): US Dollar – 120 2,021 Euro 22 54 1,460 Other – 1 7 Total 22 175 3,488 | |
Schedule of foreign currency exchange rates | The following table details the Group’s sensitivity to a 10% change in year-end exchange rates, which the Group feels is the maximum likely change in rate based upon recent currency movements, in the key foreign currency exchange rates against Pounds Sterling: Schedule of foreign currency exchange rates Year ended 31 December 2021 US Dollar £’000 Euro £’000 Other £’000 Loss before tax – 2 – Total equity – 2 – Year ended 31 December 2020 US Dollar £’000 Euro £’000 Other £’000 Loss before tax 12 (293 ) (4 ) Total equity 12 (293 ) (4 ) Year ended 31 December 2019 US Dollar £’000 Euro £’000 Other £’000 Loss before tax 202 54 – Total equity 202 31 1 | |
Schedule of contractual maturities of financial liabilities | The following table sets out the contractual maturities (representing undiscounted contractual cash-flows) of financial liabilities: Schedule of contractual maturities of financial liabilities 2021 Up to 3 £’000 Between 3 and 12 months £’000 Between years £’000 Between £’000 Over £’000 Trade and other payables 1,036 – – – – Lease liabilities 46 171 195 442 – Total 1,082 171 195 442 – 2020 Up to 3 £’000 Between 3 and 12 months £’000 Between years £’000 Between £’000 Over £’000 Trade and other payables 1,131 – – – – Lease liabilities 25 75 61 8 – Government research loans 107 – – – – Total 1,263 75 61 8 – 2019 Up to 3 £’000 Between 3 and 12 months £’000 Between years £’000 Between £’000 Over £’000 Trade and other payables 2,503 – – – – Lease liabilities 79 165 317 735 – Government research loans – 272 238 2,851 3,317 Total 2,582 437 555 3,586 3,317 |
Deferred tax (Tables)
Deferred tax (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of unused tax losses carried forward | Unused tax losses carried forward, subject to agreement with local tax authorities, were as follows: Schedule of unused tax losses carried forward Gross losses £’000 Potential £’000 31 December 2021 67,210 16,925 31 December 2020 63,183 13,076 31 December 2019 49,565 8,426 |
Schedule of deferred tax liability | Details of the deferred tax liability are as follows: Schedule of deferred tax liability 2021 Asset £’000 Liability £’000 Net £’000 Business Combinations – – – 2020 Asset £’000 Liability £’000 Net £’000 Business Combinations – – – 2019 Asset £’000 Liability £’000 Net £’000 Business Combinations 1,581 (1,581 ) – |
Reserves (Tables)
Reserves (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of reserves | The following describes the nature and purpose of each reserve within equity: Schedule of reserves Reserve Description and purpose Share premium Amount subscribed for share capital in excess of nominal value. Merger reserve Represents the difference between the fair value and nominal value of shares issued on the acquisition of subsidiary companies where the Company has elected to take advantage of merger accounting. Foreign exchange reserve Gains/losses arising on retranslating the net assets of overseas operations into sterling. Warrant reserve Represents the fair value of warrants denominated in £ at the date of grant Accumulated deficit All other net gains and losses and transactions with owners (e.g. dividends) not recognised elsewhere. |
Share-based payments (Tables)
Share-based payments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Details of all share options granted under the Schemes are set out below: | Details of all share options granted under the Schemes are set out below: Date of grant At 1 January Granted in 2021 Expired 2021 Forfeited in At 31 December Exercise Price 13 September 2011 150 – (150 ) – – £ 83.80 20 April 2012 1,589 – – – 1,589 £ 83.80 9 May 2014 10,000 – – – 10,000 £ 1.50 30 June 2014 500 – – – 500 £ 1.50 31 October 2016 7,921 – – (890 ) 7,031 £ 53.60 19 December 2016 10,018 – – (2,062 ) 7,956 £ 24.20 15 December 2017 3,300 – – (2,100 ) 1,200 £ 9.20 24 April 2019 45,500 – – (33,000 ) 12,500 £ 1.46 2 October 2019 30,000 – – – 30,000 £ 1.05 17 April 2020 100,000 – – – 100,000 £ 0.24 17 June 2020 1,274,000 – – (410,500 ) 863,500 £ 0.202 15 July 2021 – 1,709,000 – (280,000 ) 1,429,000 £ 0.28 2 August 2021 – 50,000 – – 50,000 £ 0.27 1 September 2021 – 120,000 – – 120,000 £ 0.26 1,482,978 1,879,000 (150 ) (728,552 ) 2,633,276 Options exercisable at 31 December 2021 179,632 Weighted average exercise price of outstanding options at 31 December 2021 £ 0.538 Weighted average exercise price of options exercised in 2021 n/a Weighted average exercise price of options lapsed in 2021 £ 83.30 Weighted average exercise price of options forfeited in 2021 £ 0.447 Weighted average exercise price of options granted in 2021 £ 0.276 Weighted average remaining contractual life of outstanding options at 31 December 2021 9.0 Date of grant At 1 January Granted in 2020 Expired in 2020 Forfeited in At 31 December Exercise Price 1 April 2010 1,255 – (1,255 ) – – £ 80.00 20 August 2010 2,088 – (2,088 ) – – £ 83.80 13 September 2011 150 – – – 150 £ 83.80 20 April 2012 1,589 – – – 1,589 £ 83.80 9 May 2014 10,000 – – – 10,000 £ 1.50 30 June 2014 18,500 – (18,000 ) 500 £ 1.50 11 July 2014 100 – (50 ) (50 ) – £ 1.50 31 October 2016 16,271 – (850 ) (7,500 ) 7,921 £ 53.60 14 December 2016 400 – (400 ) – – £ 31.00 14 December 2016 500 – (500 ) – – £ 34.00 14 December 2016 2,000 – (2,000 ) – – £ 37.40 14 December 2016 1,625 – (1,625 ) – – £ 37.60 15 December 2016 4,600 – (4,600 ) – – £ 24.20 19 December 2016 22,391 – (1,562 ) (10,811 ) 10,018 £ 24.20 15 December 2017 29,560 – (13,310 ) (12,950 ) 3,300 £ 9.20 2 April 2018 997 – (997 ) – – £ 16.60 2 April 2018 4,500 – (4,500 ) – – £ 24.20 24 April 2019 169,500 – – (124,000 ) 45,500 £ 1.46 2 October 2019 50,000 – – (20,000 ) 30,000 £ 1.05 17 April 2020 – 100,000 – – 100,000 £ 0.24 17 June 2020 – 1,363,000 – (89,000 ) 1,274,000 £ 0.202 336,026 1,463,000 (33,737 ) (282,311 ) 1,482,978 Options exercisable at 31 December 2020 195,171 Weighted average exercise price of outstanding options at 31 December 2020 £ 0.835 Weighted average exercise price of options exercised in 2020 n/a Weighted average exercise price of options lapsed in 2020 £ 26.183 Weighted average exercise price of options forfeited in 2020 £ 3.648 Weighted average exercise price of options granted in 2020 £ 0.205 Weighted average remaining contractual life of outstanding options at 31 December 2020 9.2 Date of grant At 1 January Granted in 2019 Exercised in Forfeited in At 31 December Exercise Price 1 April 2010 1,255 – – – 1,255 £ 80.00 20 August 2010 2,088 – – – 2,088 £ 83.80 13 September 2011 150 – – – 150 £ 83.80 20 April 2012 1,589 – – – 1,589 £ 83.80 9 May 2014 10,000 – – – 10,000 £ 1.50 30 June 2014 21,500 – – (3,000 ) 18,500 £ 1.50 11 July 2014 100 – – – 100 £ 1.50 31 October 2016 2,500 – – (2,500 ) – £ 34.20 31 October 2016 23,411 – – (7,140 ) 16,271 £ 53.60 14 December 2016 400 – – – 400 £ 31.00 14 December 2016 500 – – – 500 £ 34.00 14 December 2016 2,000 – – – 2,000 £ 37.40 14 December 2016 1,625 – – – 1,625 £ 37.60 15 December 2016 4,600 – – – 4,600 £ 24.20 19 December 2016 35,866 – – (13,475 ) 22,391 £ 24.20 15 December 2017 45,885 – – (16,325 ) 29,560 £ 9.20 2 April 2018 997 – – – 997 £ 16.60 2 April 2018 4,500 – – – 4,500 £ 24.20 24 April 2019 – 219,000 – (49,500 ) 169,500 £ 1.46 2 October 2019 – 50,000 – – 50,000 £ 1.05 158,966 269,000 – (91,940 ) 336,026 Options exercisable at 31 December 2019 131,094 Weighted average exercise price of outstanding options at 31 December 2019 £ 8.48 Weighted average exercise price of options exercised in 2019 n/a Weighted average exercise price of options forfeited in 2019 £ 13.26 Weighted average exercise price of options granted in 2019 £ 1.38 Weighted average remaining contractual life of outstanding options at 31 December 2019 7.9 |
The following information is relevant in the determination of the fair value of options granted during the year 2021 under the equity share based remuneration schemes operated by the Group. | The following information is relevant in the determination of the fair value of options granted during the year 2021 under the equity share based remuneration schemes operated by the Group. July 2021 August 2021 September 2021 Number of options 1,709,000 50,000 120,000 Option pricing models used Black-Scholes Black-Scholes Black-Scholes Share price £ 0.2775 * £ 0.265 * £ 0.255 * Exercise price of options issued in year £ 0.2775 £ 0.265 £ 0.255 Contractual life 10 10 10 Expected life 5 5 5 Volatility 88.63 %** 88.59 %** 88.11 %** Expected dividend yield 0 % 0 % 0 % Risk free rate 0.38 % 0.26 % 0.32 % * The share price used in the determination of the fair value of the options granted in 2021 was the share price on the date of grant. ** Volatility was calculated with reference to the historic share price volatility of comparable companies measured over a five-year period. The following information is relevant in the determination of the fair value of options granted during the year 2020 under the equity share based remuneration schemes operated by the Group. April 2020 June 2020 Number of options 100,000 1,363,000 Option pricing models used Black-Scholes Black-Scholes Share price £ 0.24 * £ 0.213 * Exercise price of options issued in year £ 0.24 £ 0.202 Contractual life 10 10 Expected life 5 5 Volatility 84.76 %** 92.55 %** Expected dividend yield 0 % 0 % Risk free rate 0.11 % 0.10 % * The share price used in the determination of the fair value of the options granted in 2020 was the share price on the date of grant. ** Volatility was calculated with reference to the historic share price volatility of comparable companies measured over a five-year period. The following information is relevant in the determination of the fair value of options granted during the year 2019 under the equity share based remuneration schemes operated by the Group. April 2019 October 2019 Number of options 219,000 50,000 Option pricing models used Black-Scholes Black-Scholes Share price £ 2.30 * £ 1.126 * Exercise price of options issued in year £ 1.46 £ 1.05 Contractual life 10 10 Expected life 5 5 Volatility 75.3 %** 78.3 %** Expected dividend yield 0 % 0 % Risk free rate 0.85 % 0.26 % * The share price used in the determination of the fair value of the options granted in 2019 was the share price on the date of grant. ** Volatility was calculated with reference to the historic share price volatility of comparable companies measured over a five-year period. |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of related party transactions | During the year Group companies entered into the following transactions with related parties who are not members of the Group. Schedule of related party transactions Purchase of good Amounts owed by related parties 2021 €’000 2020 €’000 2019 €’000 2021 €’000 2020 €£’000 2019 €’000 BioConnection BV – 296 18 – – 8 |
Results of Midatech Pharma (E_2
Results of Midatech Pharma (Espa?a) SL (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Results Of Midatech Pharma Espaa Sl | |
Schedule Of Unaudited Results Explanatory | The unaudited results of Midatech Pharma (España) SL for the year to 31 December are as follows: Schedule Of Unaudited Results Explanatory Year ended 31 December 2021 £’000 Year ended 31 December 2020 £’000 Grant revenue – 163 Total revenue – 163 Research and development costs – (2,820 ) Administrative costs – (1,146 ) Loss from operations – (3,803 ) Finance expense – (11 ) Loss before tax – (3,814 ) Taxation – (21 ) Loss from operations after tax – (3,835 ) |
Basis of preparation (Details N
Basis of preparation (Details Narrative) - GBP (£) £ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Basis Of Preparation | ||||||
Total equity | £ 7,491 | £ 3,752 | £ 10,452 | £ 6,718 | £ 19,558 | £ 16,924 |
Loss for the period | 3,061 | 3,154 | 5,460 | 22,189 | 10,085 | |
Net cash used in operating activities | 3,539 | 3,108 | 6,008 | 9,301 | 6,489 | |
Cash and cash equivalents | £ 6,423 | £ 4,204 | £ 10,057 | £ 7,546 | £ 10,928 | £ 2,343 |
Finance income and expense (Det
Finance income and expense (Details) - GBP (£) £ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finance income | |||||
Interest received on bank deposits | £ 6 | £ 1 | £ 8 | ||
Gain on equity settled derivative financial liability | 398 | 936 | 484 | ||
Total finance income | 404 | 936 | 1 | 492 | |
Finance expense | |||||
Interest expense on lease liabilities | 24 | 13 | 36 | 20 | 30 |
Other loans | 9 | 8 | 14 | 67 | |
Loss on equity settled derivative financial liability | 134 | 397 | |||
Total finance expense | £ 24 | £ 156 | £ 44 | £ 431 | £ 97 |
Taxation (Details)
Taxation (Details) - GBP (£) £ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income tax credit | £ 337 | £ 236 | £ (646) | £ (1,281) | £ (1,785) |
Loss per share (Details)
Loss per share (Details) - GBP (£) £ / shares in Units, £ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator | |||||
Loss used in basic EPS and diluted EPS: | £ (3,061) | £ (3,154) | £ (5,460) | £ (22,189) | £ (10,085) |
Denominator | |||||
Weighted average number of ordinary shares used in basic and diluted EPS: | 98,476,551 | 63,296,377 | 80,546,881 | 42,839,961 | 18,330,588 |
Basic and diluted loss per share: | £ (3) | £ (5) | £ (7,000) | £ (52,000) | £ (50,000) |
Borrowings (Details)
Borrowings (Details) - GBP (£) £ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | ||||
Current borrowings | £ 167 | £ 146 | £ 200 | £ 412 |
Non current borrowings | 546 | 620 | £ 60 | £ 5,670 |
Lease liabilities [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current borrowings | 167 | 146 | ||
Non current borrowings | £ 546 | £ 620 |
Provision (Details)
Provision (Details) - GBP (£) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Provision | ||
Provisions at beginning | £ 50 | £ 50 |
Provision released during the period | (7) | |
Provisions at ending | £ 43 | £ 50 |
Derivative financial liabilit_3
Derivative financial liability - current (Details) - GBP (£) £ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Financial Liability Current | ||||
Derivative financial liability - current at beginning | £ 553 | £ 1,559 | £ 664 | |
Transfer to share premium on exercise of warrants | (70) | (499) | ||
Gain recognised in finance income within the consolidated statement of comprehensive income | (398) | (936) | 397 | (484) |
Derivative financial liability - current at ending | £ 155 | £ 553 | £ 1,559 | £ 664 |
Derivative financial liabilit_4
Derivative financial liability - current (Details 1) - shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | ||
Number of shares outstanding, at beginning | 6,738,641 | 7,045,456 |
Number of shares outstanding, at ending | 6,738,641 | |
Warrants [member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of shares outstanding, at beginning | 6,738,641 | 7,045,456 |
Shares lapsed | ||
Shares exercised | (306,815) | |
Number of shares outstanding, at ending | 6,738,641 | 6,738,641 |
Warrant One [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of shares outstanding, at beginning | 3,150,000 | 3,150,000 |
Shares lapsed | ||
Shares exercised | ||
Number of shares outstanding, at ending | 3,150,000 | 3,150,000 |
D A R A Warrant [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of shares outstanding, at beginning | 4,080 | 4,624 |
Shares lapsed | (544) | |
Shares exercised | ||
Number of shares outstanding, at ending | 4,080 | 4,080 |
D A R A Options [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of shares outstanding, at beginning | 2,835 | 2,835 |
Shares lapsed | (13) | |
Shares exercised | ||
Number of shares outstanding, at ending | 2,822 | 2,835 |
Derivative financial liabilit_5
Derivative financial liability - current (Details 2) - GBP (£) £ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
IfrsStatementLineItems [Line Items] | |||||
Equity settled derivative financial liability | £ 155 | £ 553 | £ 1,559 | £ 664 | |
Level 3 of fair value hierarchy [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Equity settled derivative financial liability | 155 | 553 | |||
Level 3 of fair value hierarchy [member] | Monte Carlo simulation model [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Equity settled derivative financial liability | £ 146 | £ 467 | £ 1,187 | £ 664 | |
Valuation technique (s) and key input(s) | Monte Carlo simulation model | Monte Carlo simulation model | Monte Carlo simulation model | Monte Carlo simulation model | |
Significant unobservable input(s) | Volatility rate of 105% determined using historical volatility of comparable companies. | Volatility rate of 95.0% determined using historical volatility of comparable companies. | Volatility rate of 105.0% determined using historical volatility of comparable companies. | Volatility rate of 78.4% determined using historical volatility of comparable companies. | |
Relationship of unobservable inputs to fair value | The higher the volatility the higher the fair value. | The higher the volatility the higher the fair value. | The higher the volatility the higher the fair value. | The higher the volatility the higher the fair value. | |
Description of inputs used in fair value measurement | Expected life between a range of 0.1 and 3.39 years determined using the remaining life of the share options. | Expected life between a range of 0.1 and 3.88 years determined using the remaining life of the share options. | Expected life between a range of 0.1 and 4.888 years determined using the remaining life of the share options. | Expected life between a range of 0.1 and 5.68 years determined using the remaining life of the share options. | |
Description of reasons for fair value measurement assets | The shorter the expected life the lower the fair value. | The shorter the expected life the lower the fair value. | The shorter the expected life the lower the fair value. | The shorter the expected life the lower the fair value. | |
Description of inputs used in fair value measurement assets | Risk-free rate between a range of 1.68% determined using the expected life assumptions. | Risk-free rate of 0.31% determined using the expected life assumptions. | Risk-free rate of 0.08% determined using the expected life assumptions. | Risk-free rate between a range of 0.59% and 1.69 % determined using the expected life assumptions. | |
Description of reasons for fair value measurement | The higher the risk-free rate the higher the fair value. | The higher the risk-free rate the higher the fair value. | The higher the risk-free rate the higher the fair value. | The higher the risk-free rate the higher the fair value. | |
Level 3 of fair value hierarchy [member] | Number of shares lapsed [Default Label] | |||||
IfrsStatementLineItems [Line Items] | |||||
Equity settled derivative financial liability | £ 9 | £ 86 | |||
Valuation technique (s) and key input(s) | Monte Carlo simulation model | Monte Carlo simulation model | |||
Significant unobservable input(s) | Volatility rate of 108.5% determined using historical volatility of comparable companies. | Volatility rate of 85.0% determined using historical volatility of comparable companies. | |||
Relationship of unobservable inputs to fair value | The higher the volatility the higher the fair value. | The higher the volatility the higher the fair value. | |||
Description of inputs used in fair value measurement | Expected life between a range of 0.1 and 3.00 years determined using the remaining life of the share options. | Expected life between a range of 0.1 and 3.5 years determined using the remaining life of the share options. | |||
Description of reasons for fair value measurement assets | The shorter the expected life the lower the fair value. | The shorter the expected life the lower the fair value. | |||
Description of inputs used in fair value measurement assets | Risk-free rate between a range of 1.68% determined using the expected life assumptions. | Risk-free rate of 0.71% determined using the expected life assumptions. | |||
Description of reasons for fair value measurement | The higher the risk-free rate the higher the fair value. | The higher the risk-free rate the higher the fair value. | |||
Level 3 of fair value hierarchy [member] | Black-Scholes option pricing model [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Equity settled derivative financial liability | |||||
Valuation technique (s) and key input(s) | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | |
Significant unobservable input(s) | Volatility rate of 108.5%% determined using historical volatility of comparable companies. | Volatility rate of 85.0% determined using historical volatility of comparable companies. | Volatility rate of 78.3% determined using historical volatility of comparable companies. | ||
Relationship of unobservable inputs to fair value | The higher the volatility the higher the fair value. | The higher the volatility the higher the fair value. | |||
Description of inputs used in fair value measurement | Expected life between a range of 0.1 and 0.4 years determined using the remaining life of the share options | Expected life between a range of 0.10 and 0.9 years determined using the remaining life of the share options. | Expected life between a range of 2.0 and 2.9 years determined using the remaining life of the share options. | ||
Description of reasons for fair value measurement assets | The shorter the expected life the lower the fair value. | The shorter the expected life the lower the fair value. | The shorter the expected life the lower the fair value. | The shorter the expected life the lower the fair value. | |
Description of inputs used in fair value measurement assets | Risk-free rate between a range of 1.68% determined using the expected life assumptions. | Risk-free rate of 0.71% determined using the expected life assumptions. | Volatility rate of 105.0% determined using historical volatility of comparable companies. | Risk-free rate between a range of 0.0% and 0.26 % determined using the expected life assumptions. | |
Description of reasons for fair value measurement | The higher the risk-free rate the higher the fair value. | The higher the risk-free rate the higher the fair value. | The higher the volatility the higher the fair value. | The higher the volatility the higher the fair value. |
Derivative financial liabilit_6
Derivative financial liability – current (Details Narrative) - Warrants [member] - £ / shares | 1 Months Ended | ||||
Oct. 31, 2019 | May 31, 2020 | Oct. 30, 2019 | Oct. 31, 2020 | May 30, 2020 | |
IfrsStatementLineItems [Line Items] | |||||
Number of warrants issued | 3,150,000 | 9,545,456 | 3,150,000 | ||
Share Price | £ 6.25 | ||||
Share price | £ 6.25 | ||||
Bottom of range [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Share price | £ 2.05 | ||||
Top of range [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Share price | £ 2.0625 | ||||
Bottom of range [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Share Price | £ 2.05 | ||||
Top of range [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Share Price | £ 2.0625 |
Share capital (Details)
Share capital (Details) - GBP (£) | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | ||||
Issued Capitals | £ 1,098,494 | £ 1,098,469 | £ 1,063,075 | £ 1,023,496 |
Ordinary shares [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Number of authorised shares | 98,493,413 | 98,468,387 | 63,073,852 | 23,494,981 |
Issued Capitals | £ 98,493 | £ 98,468 | £ 63,074 | £ 23,495 |
Deferred Shares [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Number of authorised shares | 1,000,001 | 1,000,001 | 1,000,001 | 1,000,001 |
Issued Capitals | £ 1,000,001 | £ 1,000,001 | £ 1,000,001 | £ 1,000,001 |
Share capital (Details 1)
Share capital (Details 1) - GBP (£) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
IfrsStatementLineItems [Line Items] | ||||
Number of amount issued for consideraton at beginning | £ 106,517 | £ 96,426 | ||
Exercise of warrants total consideration | 91 | |||
Share issue to SIPP trustee total consideration | [1] | |||
Shares issued for placing, consideration | 10,000 | |||
Number of amount issued for consideraton at end | £ 106,517 | £ 106,517 | £ 96,426 | |
Ordinary shares [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Number of shares issued for consideraton at beginning | 98,468,387 | 63,073,852 | ||
Exercise of warrants | 26 | 306,815 | 306,815 | |
Exercise of warrants, share price | £ 10 | £ 0.298 | ||
Share issue to SIPP trustee | [1] | 25,000 | ||
Shares issued for placing | 35,087,720 | |||
ShareIssue for SIPP trustee, share price | [1] | £ 0.001 | ||
Shares issued for placing, share price | £ 0.285 | |||
Number of shares issued for consideraton at end | 98,493,413 | 98,468,387 | 63,073,852 | |
Deferred Shares [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Number of shares issued for consideraton at beginning | 1,000,001 | 1,000,001 | ||
Exercise of warrants | ||||
Share issue to SIPP trustee | [1] | |||
Shares issued for placing | ||||
Number of shares issued for consideraton at end | 1,000,001 | 1,000,001 | 1,000,001 | |
[1]Share issued to Midatech Pharma Plc employee benefit trust |
Schedule of entities (Details)
Schedule of entities (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Midatech pharma plc [member] | |
IfrsStatementLineItems [Line Items] | |
Entity | Midatech Pharma plc |
Summary description | Ultimate holding company |
Midatech limited [member] | |
IfrsStatementLineItems [Line Items] | |
Entity | Midatech Limited |
Summary description | Trading company |
Midatech pharma (espana) SL (formerly midatech biogune SL) [member] | |
IfrsStatementLineItems [Line Items] | |
Entity | Midatech Pharma (Espana) SL (formerly Midatech Biogune SL) |
Summary description | Liquidated - 2021 |
PharMida AG [member] | |
IfrsStatementLineItems [Line Items] | |
Entity | PharMida AG |
Summary description | Dormant |
Midatech Pharma Wale Limited [Member] | |
IfrsStatementLineItems [Line Items] | |
Entity | Midatech Pharma (Wales) Limited (formerly Q Chip Limited) |
Summary description | Trading company |
Midatech pharma PTY [member] | |
IfrsStatementLineItems [Line Items] | |
Entity | Midatech Pharma Pty |
Summary description | Dissolved - 2020 |
Schedule of intangibles assets
Schedule of intangibles assets useful economic lives (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill [member] | |
IfrsStatementLineItems [Line Items] | |
Useful economic lives | Indefinite life |
Intangible assets under development [member] | |
IfrsStatementLineItems [Line Items] | |
Useful economic lives | In process, not yet amortising |
IT and website costs [member] | |
IfrsStatementLineItems [Line Items] | |
Useful economic lives | 4 years |
Schedule of depreciation rates
Schedule of depreciation rates of property, plant and equipment (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Fixtures and fittings [member] | |
IfrsStatementLineItems [Line Items] | |
Description of useful life, property, plant and equipment | 20%- 25% per annum straight line |
Leasehold improvements [member] | |
IfrsStatementLineItems [Line Items] | |
Description of useful life, property, plant and equipment | the shorter of 10% per annum straight line or over the lease term |
Computer equipment [member] | |
IfrsStatementLineItems [Line Items] | |
Description of useful life, property, plant and equipment | 25% per annum straight line |
Laboratory equipment [member] | |
IfrsStatementLineItems [Line Items] | |
Description of useful life, property, plant and equipment | 15% – 25% per annum straight line |
Right of use asset [member] | |
IfrsStatementLineItems [Line Items] | |
Description of useful life, property, plant and equipment | Economic life of contractual relationship |
Accounting policies (Details Na
Accounting policies (Details Narrative) - £ / shares | 12 Months Ended | |
Mar. 02, 2020 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | ||
Description of stock split | ordinary shares on a one for 20 basis into new ordinary shares of £0.001 each in the capital of the Company | ordinary shares on a one for 20 basis into new ordinary shares of 0.1p each in the capital of the Company. The comparative denominator has been calculated to reflect the share consolidation. |
Ordinary shares [member] | ||
IfrsStatementLineItems [Line Items] | ||
Share par value (in dollars per share) | £ 0.001 |
Schedule of revenue by geograph
Schedule of revenue by geographical analysis (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Revenue | £ 578 | £ 180 | £ 312 |
Continuing operations [member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue | 578 | 180 | 312 |
Continuing operations [member] | United Kingdom [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue | 0 | 4 | 197 |
Continuing operations [member] | Belgium [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue | 578 | 114 | 0 |
Continuing operations [member] | Rest Of Europe [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue | 0 | 55 | |
Continuing operations [member] | Rest of the world [member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue | £ 0 | £ 62 | £ 60 |
Schedule of commercial segment
Schedule of commercial segment (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Customers B [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Percentage of revenue in excess of 10% | 0% | 34% | 19% |
Customers C [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Percentage of revenue in excess of 10% | 0% | 2% | 18% |
Customers A [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Percentage of revenue in excess of 10% | 100% | 64% | 63% |
Schedule of segment (Details)
Schedule of segment (Details) - GBP (£) £ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||||
Revenue | £ 578 | £ 180 | £ 312 | ||
Total revenue | £ 468 | £ 401 | 578 | 343 | 674 |
Other income | 16 | 31 | 24 | 12 | 15 |
Research and development costs | 2,413 | 2,010 | 4,654 | 6,068 | 7,843 |
Administrative costs | 1,849 | 1,656 | 2,946 | 4,958 | 3,841 |
Depreciation | 96 | 117 | 213 | 1,089 | 979 |
Loss from operations | (3,778) | (3,234) | (6,998) | (23,040) | (11,318) |
Finance income | 404 | 936 | 1 | 492 | |
Finance expense | 24 | 156 | 44 | 431 | 97 |
Loss before tax | (3,398) | (3,390) | (6,106) | (23,470) | (10,923) |
Taxation | (337) | (236) | 646 | 1,281 | 1,785 |
Loss from continuing operations | (5,460) | (22,189) | (9,138) | ||
Depreciation | 1,207 | ||||
Grant revenue | 163 | 362 | |||
Impairment | 12,369 | ||||
Loss for the year | (3,061) | (3,154) | (5,460) | (22,189) | (10,085) |
Administrative costs | 10 | ||||
Research and development costs | (2,413) | (2,010) | (4,654) | (6,068) | (7,843) |
Distribution costs, sales and marketing | (323) | ||||
Administrative costs | (1,849) | (1,656) | (2,946) | (4,958) | (3,841) |
Depreciation | (96) | (117) | (213) | (1,089) | (979) |
Finance expense | £ (24) | £ (156) | (44) | (431) | (97) |
Loss from discontinued operations | (947) | ||||
Discontinued operations [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Revenue | 312 | ||||
Total revenue | 674 | ||||
Other income | 15 | ||||
Research and development costs | 2,820 | 6,624 | |||
Administrative costs | 1,146 | 3,775 | |||
Depreciation | 1,282 | ||||
Loss from operations | (3,803) | (12,265) | |||
Finance income | 492 | ||||
Finance expense | 11 | 97 | |||
Loss before tax | (3,814) | (11,870) | |||
Taxation | 21 | 1,785 | |||
Loss from continuing operations | (3,835) | (9,138) | |||
Grant revenue | 163 | 362 | |||
Amortisation | (3) | ||||
Loss for the year | (10,085) | ||||
Research and development costs | (2,820) | (6,624) | |||
Distribution costs, sales and marketing | (323) | ||||
Administrative costs | (1,146) | (3,775) | |||
Loss from discontinued operations, net of tax | (947) | ||||
Depreciation | (1,282) | ||||
Finance expense | (11) | (97) | |||
Loss from discontinued operations | (947) | ||||
Pipeline R&D [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Loss from continuing operations | (5,460) | ||||
Pipeline R&D [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Revenue | 578 | 180 | 312 | ||
Total revenue | 578 | 343 | 674 | ||
Other income | 24 | 12 | 15 | ||
Research and development costs | (4,291) | (4,886) | 6,624 | ||
Administrative costs | (2,906) | (4,923) | 3,775 | ||
Depreciation | (403) | (1,207) | 1,282 | ||
Loss from operations | (6,998) | (23,040) | (11,318) | ||
Finance income | 936 | 1 | 492 | ||
Finance expense | (44) | (431) | 97 | ||
Loss before tax | (6,106) | (23,470) | (10,923) | ||
Taxation | 646 | 1,281 | 1,785 | ||
Research and development costs | 363 | ||||
Administrative costs | 40 | 33 | |||
Depreciation | 403 | ||||
Grant revenue | 163 | 362 | |||
Amortisation | (10) | (3) | |||
Impairment | (12,369) | ||||
Loss for the year | (22,189) | (9,138) | |||
Research and development costs | 1,174 | ||||
Research and development costs | 8 | ||||
Administrative costs | 2 | ||||
Research and development costs | 4,291 | 4,886 | (6,624) | ||
Distribution costs, sales and marketing | (323) | ||||
Administrative costs | 2,906 | 4,923 | (3,775) | ||
Loss from discontinued operations, net of tax | |||||
Depreciation | 403 | 1,207 | (1,282) | ||
Finance expense | £ 44 | £ 431 | (97) | ||
Commercial [Member] | Discontinued operations [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Revenue | |||||
Total revenue | |||||
Other income | |||||
Research and development costs | 0 | ||||
Administrative costs | |||||
Depreciation | |||||
Loss from operations | (947) | ||||
Finance income | |||||
Finance expense | |||||
Loss before tax | (947) | ||||
Taxation | |||||
Grant revenue | |||||
Amortisation | |||||
Loss for the year | (947) | ||||
Research and development costs | 0 | ||||
Distribution costs, sales and marketing | |||||
Administrative costs | |||||
Loss from discontinued operations, net of tax | (947) | ||||
Depreciation | |||||
Finance expense |
Schedule of non-current assets
Schedule of non-current assets by location of assets (Details) - GBP (£) £ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | ||||
Non-current assets | £ 993 | £ 1,152 | £ 542 | £ 17,158 |
United Kingdom [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Non-current assets | 1,152 | 542 | 12,775 | |
Spain [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Non-current assets | £ 0 | £ 0 | £ 4,383 |
Critical accounting estimates_2
Critical accounting estimates and judgements (Details Narrative) - GBP (£) £ in Millions | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | ||||
Intangible assets other than goodwill | £ 10.1 | |||
Impairment charge on non financial assets | £ 2.3 | |||
Cash | 9.3 | |||
Unused tax losses for which no deferred tax asset recognised | 67.2 | £ 63.2 | 49.6 | |
Intangible assets under development [member] | Midatech pharma (wales) limited [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Goodwill | £ 2.3 | |||
Impairment charge on non financial assets | £ 11.6 | £ 9.3 | £ 2.3 |
Schedule of post-tax loss on di
Schedule of post-tax loss on disposal of discontinued operations (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue | |||
Expenses other than finance costs | (947) | ||
Finance costs | |||
Impairment | |||
Loss from discontinued operations before tax | (947) | ||
Taxation | |||
Loss on disposal of discontinued operations | |||
Loss for the year from discontinued operations after tax | £ (947) |
Schedule of amounts related to
Schedule of amounts related to discontinued operations (Details) - GBP (£) £ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||||
Operating activities | £ (3,539) | £ (3,108) | £ (6,008) | £ (9,301) | £ (6,489) |
Investing activities | (17) | (147) | (278) | 2,574 | (3,807) |
Financing activities | £ (78) | £ (81) | 8,805 | 3,084 | 18,733 |
Discontinued operations [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Net cash flow from discontinued operations | 0 | 0 | (947) | ||
Operating activities | |||||
Investing activities | 0 | 0 | (947) | ||
Financing activities | £ 0 | £ 0 | £ 0 |
Schedule of loss from operation
Schedule of loss from operations (Details) - GBP (£) £ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Depreciation of property, plant and equipment | |||||
– From continuing operations | £ 213 | £ 1,089 | £ 979 | ||
Depreciation of right of use asset | |||||
– From continuing operations | 190 | 118 | 303 | ||
Amortisation of intangible assets – product and marketing rights | |||||
– From continuing operations | 10 | 3 | |||
Impairment of intangible assets | 12,369 | ||||
Fees payable to the Company’s auditor for the audit of the parent Company | 88 | 87 | 110 | ||
Fees payable to the Company’s subsidiary auditors for the audits of the subsidiary accounts | 44 | 43 | 48 | ||
Fees payable to the Company’s auditor for: | |||||
– Other services | 7 | 66 | |||
Fees payable to the Company’s previous auditor for the audit of the parent Company | 15 | ||||
Fees payable to the Company’s previous auditor for: | |||||
- Other services | 41 | 171 | |||
Foreign exchange(gain)/loss | 12 | 96 | 131 | ||
Profit/(Loss) on disposal of property, plant and equipment | (42) | (226) | |||
Equity settled share-based payment* | £ 100 | £ 37 | £ 89 | £ (404) | £ (34) |
Discontinued operations (Detail
Discontinued operations (Details Narrative) - Barings LLC [Member] £ in Thousands | 12 Months Ended |
Dec. 31, 2021 GBP (£) | |
IfrsStatementLineItems [Line Items] | |
Total consideration received | £ 19 |
Contingent payable | £ 6 |
Schedule of staff costs (Detail
Schedule of staff costs (Details) - GBP (£) £ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Staff Costs | |||||
Wages and salaries | £ 1,354 | £ 2,727 | £ 2,762 | ||
Defined contribution pension cost (note 25) | 71 | 75 | 90 | ||
Social security contributions and similar taxes | 152 | 397 | 565 | ||
Share-based payment charge/(credit) | £ 100 | £ 37 | 89 | (404) | (34) |
Staff costs gross | 1,666 | 2,795 | 3,383 | ||
Continuing operations | 1,666 | 2,795 | 3,383 | ||
Discontinued operations | |||||
Staff costs | £ 1,666 | £ 2,795 | £ 3,383 |
Schedule for average number of
Schedule for average number of employed staff (Details) - Number | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Average number of staff employee | 20 | 40 | 65 |
Research and Development [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Average number of staff employee | 15 | 31 | 52 |
General and Administration [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Average number of staff employee | 5 | 9 | 13 |
Schedule of Management Personne
Schedule of Management Personnel Compensation (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Staff Costs | |||
Short term employee benefits | £ 658 | £ 472 | £ 812 |
Wages and salaries | 656 | ||
Payments made to third parties | 82 | ||
Social security contributions and similar taxes | 72 | ||
Benefits in kind | 2 | ||
Post-employment benefits | 27 | 24 | 42 |
Defined contribution pension cost | 42 | ||
Termination benefits | 30 | ||
Share-based payment | 61 | (472) | (58) |
Total | £ 746 | £ 54 | £ 796 |
Schedule of finance income (Det
Schedule of finance income (Details) - GBP (£) £ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finance income | |||||
Interest received on bank deposits | £ 6 | £ 1 | £ 8 | ||
Gain on equity settled derivative financial liability | 398 | 936 | 484 | ||
Total finance income | 404 | 936 | 1 | 492 | |
Finance expense | |||||
Interest expense on lease liabilities | 24 | 13 | 36 | 20 | 30 |
Other loans | 9 | 8 | 14 | 67 | |
Loss on equity settled derivative financial liability | 134 | 397 | |||
Total finance expense | £ 24 | £ 156 | £ 44 | £ 431 | £ 97 |
Schedule of components of incom
Schedule of components of income tax expense (benefit) (Details) - GBP (£) £ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current tax credit | |||||
Current tax credited to the income statement | £ (646) | £ (1,144) | £ (1,782) | ||
Taxation payable in respect of foreign subsidiary | (21) | ||||
Adjustment in respect of prior year | 158 | 3 | |||
Total current tax credit | (646) | (1,281) | (1,785) | ||
Deferred tax credit | |||||
Reversal of temporary differences | |||||
Total tax credit | £ (337) | £ (236) | £ 646 | £ 1,281 | £ 1,785 |
Schedule of difference between
Schedule of difference between actual tax charge and the standard rate of corporation tax (Details) - GBP (£) £ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Staff Costs | |||||
Loss before tax | £ (6,106) | £ (23,470) | £ (11,870) | ||
Expected tax credit based on the standard rate of United Kingdom corporation tax at the domestic rate of 19% | (1,160) | (4,459) | (2,255) | ||
Expenses not deductible for tax purposes | 75 | 596 | 1,087 | ||
Income not taxable | (2) | (75) | |||
Unrelieved tax losses and other deductions | (114) | ||||
Adjustment in respect of prior period | 158 | 3 | |||
Surrender of tax losses for R&D tax refund | 280 | 491 | 1,810 | ||
Foreign exchange differences | 1 | ||||
Deferred tax not recognised | 721 | 3,306 | 1,309 | ||
Total tax credited to the income statement | £ 337 | £ 236 | £ (646) | £ (1,281) | £ (1,785) |
Schedule of loss per share (Det
Schedule of loss per share (Details) - GBP (£) £ / shares in Units, £ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loss used in basic EPS and diluted EPS: | |||||
Continuing operations | £ (5,460) | £ (22,189) | £ (9,138) | ||
Discontinued operations | £ (947) | ||||
Denominator | |||||
Weighted average number of ordinary shares used in basic EPS: | 98,476,551 | 63,296,377 | 80,546,881 | 42,839,961 | 18,330,588 |
Basic and diluted loss per share: | |||||
Continuing operations – pence | £ (7) | £ (52) | £ (50) | ||
Discontinued operations – pence | £ (5) |
Staff costs (Details Narrative)
Staff costs (Details Narrative) | 6 Months Ended | 12 Months Ended | |
Mar. 02, 2020 | Jun. 30, 2022 | Dec. 31, 2021 | |
Staff Costs | |||
Disclosure of information about key management personnel | Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Group, including the Directors of the Company, Chief Executive Officer and the Chief Scientific Officer . | ||
Description of stock split | ordinary shares on a one for 20 basis into new ordinary shares of £0.001 each in the capital of the Company | ordinary shares on a one for 20 basis into new ordinary shares of 0.1p each in the capital of the Company. The comparative denominator has been calculated to reflect the share consolidation. |
Schedule of detailed informatio
Schedule of detailed information about property, plant and equipment (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | £ 542 | £ 2,154 | |
Balance at ending | 1,152 | 542 | £ 2,154 |
Gross Gross Gross Carrying Amount [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | 2,143 | 7,551 | 6,300 |
Additions | 1,209 | ||
Effect of modification to lease terms | (82) | ||
Charge for the year | 271 | (271) | |
Disposals | (5,210) | ||
Disposals, property, plant and equipment | 5,210 | ||
Balance at ending | 2,793 | 2,143 | 7,551 |
Accumulated depreciation and amortisation [member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | 1,601 | 5,397 | 4,317 |
Additions | 1,040 | 209 | |
Effect of modification to lease terms | (24) | (678) | |
Charge for the year | 183 | (202) | |
Disposals | 366 | ||
Increase (decrease) through transfers, property, plant and equipment | |||
Disposals, property, plant and equipment | (366) | ||
Balance at ending | 1,641 | 1,601 | 5,397 |
Charge for the year | 403 | 1,207 | 1,282 |
Disposals | (363) | (5,186) | |
Balance at end | 1,152 | 542 | 2,154 |
Fixtures and fittings [member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | 53 | ||
Balance at ending | 60 | 53 | |
Balance at end | 53 | 4 | 13 |
Fixtures and fittings [member] | Gross Gross Gross Carrying Amount [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | 248 | 253 | |
Additions | 57 | 4 | |
Effect of modification to lease terms | |||
Charge for the year | 8 | 7 | (9) |
Disposals | (50) | (202) | |
Disposals, property, plant and equipment | 50 | 202 | |
Balance at ending | 248 | ||
Disposals | (50) | ||
Fixtures and fittings [member] | Accumulated depreciation and amortisation [member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | 49 | 235 | 241 |
Adoption of IFRS 16 Leases | |||
Effect of modification to lease terms | |||
Charge for the year | 7 | (8) | |
Balance at ending | 7 | 49 | 235 |
Charge for the year | 2 | ||
Charge for the year | 9 | ||
Disposals | (202) | ||
Leasehold improvements [member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | 4 | 2,038 | |
Balance at ending | 53 | 4 | 2,038 |
Balance at end | 49 | 2 | 244 |
Leasehold improvements [member] | Gross Gross Gross Carrying Amount [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | 2,013 | ||
Additions | 58 | 137 | |
Effect of modification to lease terms | |||
Charge for the year | 92 | (112) | |
Disposals | (4) | (2,184) | |
Disposals, property, plant and equipment | 4 | 2,184 | |
Disposals | (3) | ||
Leasehold improvements [member] | Accumulated depreciation and amortisation [member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | 2 | 1,794 | 1,485 |
Adoption of IFRS 16 Leases | |||
Additions | 53 | ||
Effect of modification to lease terms | |||
Charge for the year | 81 | (91) | |
Increase (decrease) through transfers, property, plant and equipment | |||
Balance at ending | 4 | 2 | 1,794 |
Charge for the year | 5 | 310 | 400 |
Disposals | (2,183) | ||
Computer equipment [member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | 236 | 403 | |
Balance at ending | 242 | 236 | 403 |
Balance at end | 29 | 37 | 71 |
Computer equipment [member] | Gross Gross Gross Carrying Amount [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | 383 | ||
Additions | 16 | 23 | |
Effect of modification to lease terms | |||
Charge for the year | 2 | (3) | |
Disposals | (10) | (185) | |
Disposals, property, plant and equipment | 10 | 185 | |
Disposals | (8) | ||
Computer equipment [member] | Accumulated depreciation and amortisation [member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | 199 | 332 | 265 |
Adoption of IFRS 16 Leases | |||
Additions | 16 | ||
Effect of modification to lease terms | |||
Charge for the year | 2 | (3) | |
Increase (decrease) through transfers, property, plant and equipment | |||
Balance at ending | 213 | 199 | 332 |
Charge for the year | 22 | 50 | 70 |
Disposals | (185) | ||
Laboratory equipment [member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | 1,662 | 3,738 | |
Balance at ending | 1,563 | 1,662 | 3,738 |
Balance at end | 358 | 423 | 998 |
Laboratory equipment [member] | Gross Gross Gross Carrying Amount [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | 3,651 | ||
Additions | 223 | ||
Charge for the year | 112 | (136) | |
Disposals | (2,323) | ||
Disposals, property, plant and equipment | 2,323 | ||
Laboratory equipment [member] | Accumulated depreciation and amortisation [member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | 1,239 | 2,740 | |
Adoption of IFRS 16 Leases | |||
Additions | 194 | 135 | |
Effect of modification to lease terms | |||
Charge for the year | 79 | (93) | |
Disposals | (138) | ||
Increase (decrease) through transfers, property, plant and equipment | (155) | ||
Disposals, property, plant and equipment | 138 | ||
Balance at ending | 1,205 | 1,239 | 2,740 |
Balance at beginning | 2,326 | ||
Charge for the year | 178 | 720 | 507 |
Disposals | (138) | (2,300) | |
Transfer | (74) | ||
Right-of-use assets [member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | 188 | 1,124 | |
Balance at ending | 875 | 188 | 1,124 |
Balance at end | 663 | 76 | 828 |
Right-of-use assets [member] | Gross Gross Gross Carrying Amount [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | |||
Adoption of IFRS 16 Leases | 395 | ||
Additions | 822 | ||
Effect of modification to lease terms | (24) | (678) | (82) |
Charge for the year | 58 | (11) | |
Disposals | (164) | (316) | |
Disposals, property, plant and equipment | 164 | 316 | |
Disposals | (164) | ||
Right-of-use assets [member] | Accumulated depreciation and amortisation [member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | 112 | 296 | |
Additions | 720 | ||
Charge for the year | 14 | (7) | |
Increase (decrease) through transfers, property, plant and equipment | 155 | ||
Balance at ending | 212 | 112 | 296 |
Charge for the year | 190 | 118 | £ 303 |
Disposals | £ (316) | ||
Transfer | £ 74 |
Schedule of market rental rates
Schedule of market rental rates (Details) - GBP (£) £ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||||
Interest expenses | £ 24 | £ 13 | £ 36 | £ 20 | £ 30 |
Lease payments | (73) | (47) | (112) | (258) | (450) |
Land and buildings [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Balance at beginning | £ 766 | £ 76 | 76 | 907 | 546 |
Additions | 720 | 822 | |||
Transfer to lease liabilities | 77 | 0 | |||
Effect of modification to lease terms | (24) | (788) | (82) | ||
Interest expenses | 29 | 15 | 24 | ||
Lease payments | (112) | (105) | (391) | ||
Exchange differences | 0 | 47 | (12) | ||
Balance at ending | £ 766 | £ 76 | £ 907 |
Low value leases expensed in ye
Low value leases expensed in year (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Low value leases expensed | £ 2 | £ 10 | £ 29 |
Total | £ 2 | £ 10 | £ 29 |
Schedule of reconciliation of c
Schedule of reconciliation of changes in intangible assets and goodwill (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | £ 12,379 | ||
Balance at end | £ 12,379 | ||
Balance at end | 12,379 | ||
Gross Gross Gross Carrying Amount [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | 15,704 | 15,697 | |
Additions | 9 | ||
Foreign exchange | 1 | (2) | |
Disposal | (36) | ||
Balance at end | 15,669 | 15,704 | |
Balance at end | 15,669 | 15,704 | 15,669 |
Amortisation charge for the year | 10 | 3 | |
Foreign exchange | 1 | (1) | |
Impairment | 12,369 | ||
Gross Gross Carrying Amount [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | 12,379 | ||
Balance at end | 12,379 | ||
Balance at end | 12,379 | 15,669 | |
Accumulated depreciation and amortisation [member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | 3,325 | 3,323 | |
Balance at end | 15,669 | 3,325 | |
Balance at end | 15,669 | 3,325 | |
Intangible assets under development [member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at end | 13,378 | ||
Intangible assets under development [member] | Gross Gross Gross Carrying Amount [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | 13,378 | 13,378 | |
Additions | |||
Foreign exchange | |||
Disposal | |||
Balance at end | 13,378 | 13,378 | |
Balance at end | 13,378 | 13,378 | |
Amortisation charge for the year | |||
Foreign exchange | |||
Impairment | 10,078 | ||
Intangible assets under development [member] | Gross Gross Carrying Amount [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | 10,078 | ||
Balance at end | 10,078 | ||
Balance at end | 10,078 | ||
Intangible assets under development [member] | Accumulated depreciation and amortisation [member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | 3,300 | 3,300 | |
Balance at end | 13,378 | 3,300 | |
Balance at end | 13,378 | 3,300 | 13,378 |
Goodwill [member] | Gross Gross Gross Carrying Amount [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | 2,291 | 2,291 | |
Additions | |||
Foreign exchange | |||
Disposal | |||
Balance at end | 2,291 | 2,291 | |
Balance at end | 2,291 | 2,291 | |
Amortisation charge for the year | |||
Foreign exchange | |||
Goodwill [member] | Gross Gross Carrying Amount [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | 2,291 | ||
Balance at end | 2,291 | ||
Balance at end | 2,291 | 2,291 | |
Goodwill [member] | Accumulated depreciation, amortisation and impairment [member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at end | 2,291 | ||
Balance at end | 2,291 | ||
Impairment | 2,291 | ||
Goodwill [member] | Accumulated depreciation and amortisation [member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | |||
Balance at end | |||
Balance at end | 2,291 | ||
IT and website costs [member] | Gross Gross Gross Carrying Amount [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | 35 | 28 | |
Additions | 9 | ||
Foreign exchange | 1 | (2) | |
Disposal | (36) | ||
Balance at end | 35 | ||
Balance at end | 35 | ||
Foreign exchange | 1 | (1) | |
Impairment | |||
IT and website costs [member] | Gross Gross Carrying Amount [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | 10 | ||
Balance at end | 10 | ||
Balance at end | 10 | ||
IT and website costs [member] | Accumulated depreciation, amortisation and impairment [member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | 25 | ||
Balance at end | 25 | ||
Balance at end | 25 | ||
Amortisation charge for the year | £ 10 | 3 | |
IT and website costs [member] | Accumulated depreciation and amortisation [member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance at beginning | £ 23 | ||
Balance at end |
Schedule of individual intangib
Schedule of individual intangible assets (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Intangible assets other than goodwill | £ 10,100 | ||
Gross Gross Gross Carrying Amount [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Intangible assets other than goodwill | £ 10,078 | ||
Product and marketing rights [member] | Midatech pharma (wales) limited [member] | Gross Gross Gross Carrying Amount [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Intangible assets other than goodwill | |||
Product and marketing rights [member] | Midatech pharma US, inc. (formerly DARA biosciences, inc.) [member] | |||
IfrsStatementLineItems [Line Items] | |||
Remaining amortisation period | n/a | n/a | |
Product and marketing rights [member] | Midatech pharma US, inc. (formerly DARA biosciences, inc.) [member] | Gross Gross Gross Carrying Amount [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Intangible assets other than goodwill | |||
Product and marketing rights [member] | MTX110 acquired IPRD [member] | |||
IfrsStatementLineItems [Line Items] | |||
Remaining amortisation period | n/a | n/a | n/a in process |
Product and marketing rights [member] | MTX110 acquired IPRD [member] | Gross Gross Gross Carrying Amount [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Intangible assets other than goodwill | £ 778 | ||
Intangible assets under development [member] | |||
IfrsStatementLineItems [Line Items] | |||
Remaining amortisation period | In process, not yet amortising | ||
Intangible assets under development [member] | Midatech pharma (wales) limited [member] | |||
IfrsStatementLineItems [Line Items] | |||
Remaining amortisation period | n/a in process | ||
Intangible assets under development [member] | Midatech pharma (wales) limited [member] | Gross Gross Gross Carrying Amount [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Intangible assets other than goodwill | £ 9,300 |
Schedule of cash generating uni
Schedule of cash generating unit (Details) - Midatech pharma (wales) limited [member] - Cash-generating units [member] - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
IPRD carrying amount | £ 9,300 | ||
Goodwill carrying amount | £ 2,291 | ||
Valuation Basis | Value in use |
Schedule of key assumptions use
Schedule of key assumptions used (Details) - Midatech pharma (wales) limited [member] - Cash-generating units [member] | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | |
Pre-tax discount rate | 18.40% |
Cumulative probability of success of projects | 81% |
Schedule of key assumptions u_2
Schedule of key assumptions used for carrying value and recoverable amount (Details) - Midatech pharma (wales) limited [member] - Cash-generating units [member] | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | |
Pre-tax discount rate for all projects | 21% |
Cumulative probability of success of all projects | 59% |
Schedule of subsidiaries (Detai
Schedule of subsidiaries (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Midatech limited [member] | |
IfrsStatementLineItems [Line Items] | |
Entity name | Midatech Limited |
Description of nature of entity's operations and principal activities | Trading company |
Midatech pharma (wales) limited [member] | |
IfrsStatementLineItems [Line Items] | |
Entity name | Midatech Pharma (Wales) Limited |
Principal place of business of subsidiary | 1 Caspian Point, Caspian Way, Cardiff, CF10 4DQ |
Description of nature of entity's operations and principal activities | Trading company |
PharMida AG [member] | |
IfrsStatementLineItems [Line Items] | |
Entity name | PharMida AG |
Principal place of business of subsidiary | c/o Kellerhals, Hirschgässlein 11, 4051 Basel, Switzerland |
Description of nature of entity's operations and principal activities | Dormant |
Schedule of trade and other rec
Schedule of trade and other receivables (Details) - GBP (£) £ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Trade receivables | £ 33 | £ 95 | £ 22 | |
Prepayments | 607 | 258 | 151 | |
Other receivables | 394 | 219 | 3,444 | |
Total trade and other receivables | 1,034 | 572 | 3,617 | |
Less: non-current portion (rental deposit and on bond) | (2,625) | |||
Current portion | £ 1,243 | £ 1,034 | £ 572 | £ 992 |
Schedule of cash and cash equiv
Schedule of cash and cash equivalents (Details) - GBP (£) £ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Cash at bank available on demand | £ 6,423 | £ 10,057 | £ 4,204 | £ 7,546 | £ 10,928 | £ 2,343 |
Schedule of cash inflows from a
Schedule of cash inflows from an equity financing transaction (Details) - GBP (£) £ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Gross proceeds | £ 10,091 | £ 10,792 | £ 15,767 | ||
Transaction costs | (1,056) | (1,050) | (1,659) | ||
Proceeds from issuing shares | £ 81 | £ 9,035 | £ 9,742 | £ 14,108 |
Schedule of changes in bank loa
Schedule of changes in bank loan liabilities (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Beginning | £ 260 | £ 6,082 | £ 1,252 |
Cash Flows | (215) | (6,440) | 4,548 |
Foreign Exchange | (4) | 275 | (71) |
New leases | 720 | 900 | |
Effect of modification to lease term - IFRS 16 | (24) | (788) | (82) |
Loans and borrowings classified as non-current 31 December 2018 becoming current in 2019 | |||
Interest accruing in period | 29 | (45) | 142 |
Ending | 766 | 260 | 6,082 |
Fair value changes | 1,176 | (1,139) | |
Adoption of IFRS16 leases | 546 | ||
Transfer to grant income | (14) | ||
Long-term borrowings [member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning | 60 | 5,670 | 884 |
Cash Flows | (6,182) | 5,575 | |
Foreign Exchange | 252 | (42) | |
New leases | 715 | 805 | |
Effect of modification to lease term - IFRS 16 | (877) | ||
Loans and borrowings classified as non-current 31 December 2018 becoming current in 2019 | (178) | 51 | (685) |
Interest accruing in period | 23 | (30) | 108 |
Ending | 620 | 60 | 5,670 |
Fair value changes | 1,176 | (1,139) | |
Adoption of IFRS16 leases | 163 | ||
Transfer to grant income | |||
Short-term borrowings [member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning | 200 | 412 | 368 |
Cash Flows | (215) | (258) | (1,027) |
Foreign Exchange | (4) | 23 | (29) |
New leases | 5 | 95 | |
Effect of modification to lease term - IFRS 16 | (24) | 89 | (82) |
Loans and borrowings classified as non-current 31 December 2018 becoming current in 2019 | 178 | (51) | 685 |
Interest accruing in period | 6 | (15) | 34 |
Ending | £ 146 | 200 | 412 |
Fair value changes | |||
Adoption of IFRS16 leases | 383 | ||
Transfer to grant income | £ (14) |
Schedule of trade and other pay
Schedule of trade and other payables (Details) - GBP (£) £ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Current | |||
Trade payables | £ 485 | £ 337 | £ 725 |
Other payables | 5 | 26 | 13 |
Accruals | 546 | 768 | 1,765 |
Total financial liabilities, excluding loans and borrowings, classified as financial liabilities measured at amortised cost | 1,036 | 1,131 | 2,503 |
Tax and social security | 56 | 31 | 86 |
Deferred revenue and government grants | 68 | 1,905 | |
Total trade and other payables | £ 1,092 | £ 1,230 | £ 4,494 |
Impairment testing (Details Nar
Impairment testing (Details Narrative) - GBP (£) £ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | ||||
Impairment charge on non financial assets | £ 2.3 | |||
Intangible assets under development [member] | Midatech pharma (wales) limited [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Impairment charge on non financial assets | £ 11.6 | £ 9.3 | £ 2.3 | |
Description of goodwill and IPRD allocated to the acquired cash generating unit | The assets of MPW were valued as at 31 December 2019 were found to support the IPRD and goodwill carrying amounts set out above. The IPRD was valued using 12-13 year risk adjusted cash flow forecasts, in line with patent life, that had been approved by the Board. A period longer than 5 years was appropriate on the basis that the investment was long term and the development and commercialisation process is typically in excess of 5 years. Beyond the period from product launch and initial market penetration, a long term growth rate of Nil was used |
Schedule of borrowings (Details
Schedule of borrowings (Details) - GBP (£) £ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | ||||
Current borriwings | £ 167 | £ 146 | £ 200 | £ 412 |
Non current borriwings | £ 546 | 620 | 60 | 5,670 |
Finance Lease [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current borriwings | 146 | 93 | 233 | |
Non current borriwings | 620 | 60 | 912 | |
Government and Research Loans [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current borriwings | 0 | 107 | 179 | |
Non current borriwings | £ 0 | £ 0 | £ 4,758 |
Trade and other payables (Detai
Trade and other payables (Details Narrative) - GBP (£) £ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | |
IfrsStatementLineItems [Line Items] | ||||
Revenue from government grants | £ 163 | £ 362 | ||
Midatech pharma (espana) SL (formerly midatech biogune SL) [member] | Spanish Government Reindustrialization Programme [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Government grants | £ 6,600 | |||
Midatech pharma (espana) SL (formerly midatech biogune SL) [member] | Spanish Government Reindustrialization Programme [Member] | Cash Backed Guarantee [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Government grants | £ 2,900,000 | |||
Government Project [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Revenue from government grants | £ 124 |
Schedule of provisions (Details
Schedule of provisions (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule Of Provisions | |||
Opening provision at 1 January | £ 50 | £ 97 | £ 165 |
Utilisation of provision | (97) | ||
Provision recognised/(released) in the year | 50 | (68) | |
At 31 December | 50 | 50 | 97 |
Less: non-current portion | (50) | ||
Current portion | £ 50 | £ 97 |
Schedule of derivative financia
Schedule of derivative financial liability (Details) - GBP (£) £ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule Of Provisions | ||||
Derivative financial liability - current at beginning | £ 553 | £ 1,559 | £ 664 | |
Warrants issued | 997 | 1,148 | ||
Transfer to share premium on exercise of warrants | (70) | (499) | ||
Gain recognised in finance income within the consolidated statement of comprehensive income | 398 | 936 | (397) | 484 |
Derivative financial liability - current at ending | £ 155 | £ 553 | £ 1,559 | £ 664 |
The following table details the
The following table details the outstanding warrants as at 31 December and also the movement in the year: (Details) - shares | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | ||||
Granted | 7,545,456 | |||
Exercised | (306,815) | (2,500,000) | ||
Number of shares outstanding | 6,738,641 | 7,045,456 | ||
Warrant One [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Granted | 3,150,000 | |||
Number of shares outstanding | 3,150,000 | 3,150,000 | 3,150,000 | 3,150,000 |
D A R A Warrant [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Number of shares outstanding | 4,080 | 4,080 | 4,624 | 116,206 |
Lapsed | (111,582) | |||
Lapsed | (544) | |||
D A R A Warrant One [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Number of shares outstanding | 4,624 | |||
D A R A Options [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Number of shares outstanding | 2,822 | 2,835 | 2,835 | 6,167 |
Lapsed | (3,332) | |||
D A R A Options One [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Number of shares outstanding | 2,835 |
Schedule of consolidated deriva
Schedule of consolidated derivative financial instruments (Details) - GBP (£) £ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and cash equivalents | £ 6,423 | £ 10,057 | £ 4,204 | £ 7,546 | £ 10,928 | £ 2,343 |
Trade receivables | 33 | 95 | 22 | |||
Other receivables | 2,625 | |||||
Total financial assets | 10,090 | 7,641 | 13,575 | |||
Trade payables | 485 | 337 | 725 | |||
Other payables | 5 | 26 | 13 | |||
Accruals | 546 | 768 | 1,765 | |||
Borrowings | 766 | 260 | 6,082 | |||
Total financial liabilities – amortised cost | 1,802 | 1,391 | 8,585 | |||
Equity settled derivative financial liability | £ 155 | £ 553 | £ 1,559 | £ 664 |
Schedule of consolidated financ
Schedule of consolidated financial assets and liabilities at fair value (Details) - GBP (£) £ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
IfrsStatementLineItems [Line Items] | |||||
Equity settled derivative financial liability | £ 155 | £ 553 | £ 1,559 | £ 664 | |
Level 3 of fair value hierarchy [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Equity settled derivative financial liability | £ 155 | 553 | |||
Level 3 of fair value hierarchy [member] | Monte Carlo simulation model [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Equity settled derivative financial liability | £ 467 | £ 372 | |||
Valuation technique (s) and key input(s) | Monte Carlo simulation model | Monte Carlo simulation model | Monte Carlo simulation model | Monte Carlo simulation model | |
Significant unobservable input(s) | Volatility rate of 105% determined using historical volatility of comparable companies. | Volatility rate of 95.0% determined using historical volatility of comparable companies. | Volatility rate of 105.0% determined using historical volatility of comparable companies. | Volatility rate of 78.4% determined using historical volatility of comparable companies. | |
Relationship of unobservable inputs to fair value | The higher the volatility the higher the fair value. | The higher the volatility the higher the fair value. | The higher the volatility the higher the fair value. | The higher the volatility the higher the fair value. | |
Significant unobservable input(s) | Expected life between a range of 0.1 and 3.39 years determined using the remaining life of the share options. | Expected life between a range of 0.1 and 3.88 years determined using the remaining life of the share options. | Expected life between a range of 0.1 and 4.888 years determined using the remaining life of the share options. | Expected life between a range of 0.1 and 5.68 years determined using the remaining life of the share options. | |
Relationship of unobservable inputs to fair value | The shorter the expected life the lower the fair value. | The shorter the expected life the lower the fair value. | The shorter the expected life the lower the fair value. | The shorter the expected life the lower the fair value. | |
Significant unobservable input(s) | Risk-free rate between a range of 1.68% determined using the expected life assumptions. | Risk-free rate of 0.31% determined using the expected life assumptions. | Risk-free rate of 0.08% determined using the expected life assumptions. | Risk-free rate between a range of 0.59% and 1.69 % determined using the expected life assumptions. | |
Relationship of unobservable inputs to fair value | The higher the risk-free rate the higher the fair value. | The higher the risk-free rate the higher the fair value. | The higher the risk-free rate the higher the fair value. | The higher the risk-free rate the higher the fair value. | |
Equity settled derivative financial liability | £ 146 | £ 467 | £ 1,187 | £ 664 | |
Significant unobservable input(s) | Expected life between a range of 0.1 and 4.49 years determined using the remaining life of the share options. | ||||
Significant unobservable input(s) | Risk-free rate of 0.07% determined using the expected life assumptions. | ||||
Significant unobservable input(s) | Volatility rate of 105.0% determined using historical volatility of comparable companies. | ||||
Level 3 of fair value hierarchy [member] | Black-Scholes option pricing model [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Valuation technique (s) and key input(s) | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | |
Significant unobservable input(s) | Volatility rate of 108.5%% determined using historical volatility of comparable companies. | Volatility rate of 85.0% determined using historical volatility of comparable companies. | Volatility rate of 78.3% determined using historical volatility of comparable companies. | ||
Relationship of unobservable inputs to fair value | The higher the volatility the higher the fair value. | The higher the volatility the higher the fair value. | |||
Significant unobservable input(s) | Expected life between a range of 0.1 and 0.4 years determined using the remaining life of the share options | Expected life between a range of 0.10 and 0.9 years determined using the remaining life of the share options. | Expected life between a range of 2.0 and 2.9 years determined using the remaining life of the share options. | ||
Relationship of unobservable inputs to fair value | The shorter the expected life the lower the fair value. | The shorter the expected life the lower the fair value. | The shorter the expected life the lower the fair value. | The shorter the expected life the lower the fair value. | |
Significant unobservable input(s) | Risk-free rate between a range of 1.68% determined using the expected life assumptions. | Risk-free rate of 0.71% determined using the expected life assumptions. | Volatility rate of 105.0% determined using historical volatility of comparable companies. | Risk-free rate between a range of 0.0% and 0.26 % determined using the expected life assumptions. | |
Relationship of unobservable inputs to fair value | The higher the risk-free rate the higher the fair value. | The higher the risk-free rate the higher the fair value. | The higher the volatility the higher the fair value. | The higher the volatility the higher the fair value. | |
Equity settled derivative financial liability | |||||
Significant unobservable input(s) | Expected life between a range of 1.0 and 1.9 years determined using the remaining life of the share options. | ||||
Significant unobservable input(s) | Risk-free rate of 0.8% determined using the expected life assumptions. | ||||
Relationship of unobservable inputs to fair value | The higher the risk-free rate the higher the fair value. | The higher the risk-free rate the higher the fair value. | |||
Level 3 of fair value hierarchy [member] | Number of shares lapsed [Default Label] | |||||
IfrsStatementLineItems [Line Items] | |||||
Valuation technique (s) and key input(s) | Monte Carlo simulation model | Monte Carlo simulation model | |||
Significant unobservable input(s) | Volatility rate of 108.5% determined using historical volatility of comparable companies. | Volatility rate of 85.0% determined using historical volatility of comparable companies. | |||
Relationship of unobservable inputs to fair value | The higher the volatility the higher the fair value. | The higher the volatility the higher the fair value. | |||
Significant unobservable input(s) | Expected life between a range of 0.1 and 3.00 years determined using the remaining life of the share options. | Expected life between a range of 0.1 and 3.5 years determined using the remaining life of the share options. | |||
Relationship of unobservable inputs to fair value | The shorter the expected life the lower the fair value. | The shorter the expected life the lower the fair value. | |||
Significant unobservable input(s) | Risk-free rate between a range of 1.68% determined using the expected life assumptions. | Risk-free rate of 0.71% determined using the expected life assumptions. | |||
Relationship of unobservable inputs to fair value | The higher the risk-free rate the higher the fair value. | The higher the risk-free rate the higher the fair value. | |||
Equity settled derivative financial liability | £ 9 | £ 86 |
Schedule of foreign exchange ri
Schedule of foreign exchange risk (Details) - GBP (£) £ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
IfrsStatementLineItems [Line Items] | ||||||
Cash and cash equivalents | £ 6,423 | £ 10,057 | £ 4,204 | £ 7,546 | £ 10,928 | £ 2,343 |
Net Foreign Currency Assets Liabilities | 22 | 175 | 3,488 | |||
Foreign exchange risk [member] | Pounds Sterling | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Cash and cash equivalents | 10,057 | 7,247 | 3,153 | |||
Foreign exchange risk [member] | US Dollar | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Net Foreign Currency Assets Liabilities | 120 | 2,021 | ||||
Foreign exchange risk [member] | Euro | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Cash and cash equivalents | 179 | 5,750 | ||||
Net Foreign Currency Assets Liabilities | 22 | 54 | 1,460 | |||
Foreign exchange risk [member] | Other | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Cash and cash equivalents | 4 | |||||
Net Foreign Currency Assets Liabilities | £ 1 | £ 7 |
Schedule of foreign currency ex
Schedule of foreign currency exchange rates (Details) - GBP (£) £ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
IfrsStatementLineItems [Line Items] | ||||||
Loss before tax | £ (3,398) | £ (3,390) | £ (6,106) | £ (23,470) | £ (10,923) | |
Total equity | £ 7,491 | £ 3,752 | 10,452 | 6,718 | 19,558 | £ 16,924 |
Foreign currency sensitivity analysis [member] | US Dollar | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loss before tax | 12 | 202 | ||||
Total equity | 12 | 202 | ||||
Foreign currency sensitivity analysis [member] | Euro | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loss before tax | 2 | (293) | 54 | |||
Total equity | 2 | (293) | 31 | |||
Foreign currency sensitivity analysis [member] | Other | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Loss before tax | (4) | |||||
Total equity | £ (4) | £ 1 |
Schedule of contractual maturit
Schedule of contractual maturities of financial liabilities (Details) - Liquidity risk [member] - GBP (£) £ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Liquidity risk [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total | £ 3,317 | ||
Not later than three months [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total | 1,082 | 1,263 | 2,582 |
Not later than three months [member] | Trade and other payables [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total | 1,036 | 1,131 | 2,503 |
Not later than three months [member] | Finance Lease [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total | 46 | 25 | 79 |
Not later than three months [member] | Government and Research Loans [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total | 107 | ||
Later than three months and not later than one year [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total | 171 | 75 | 437 |
Later than three months and not later than one year [member] | Trade and other payables [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total | |||
Later than three months and not later than one year [member] | Finance Lease [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total | 165 | ||
Later than three months and not later than one year [member] | Government and Research Loans [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total | 272 | ||
Later than one year and not later than two years [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total | 195 | 61 | 555 |
Later than one year and not later than two years [member] | Trade and other payables [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total | |||
Later than one year and not later than two years [member] | Finance Lease [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total | 195 | 61 | 317 |
Later than one year and not later than two years [member] | Government and Research Loans [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total | 238 | ||
Later than two years and not later than five years [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total | 442 | 8 | 3,586 |
Later than two years and not later than five years [member] | Trade and other payables [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total | |||
Later than two years and not later than five years [member] | Finance Lease [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total | 442 | 8 | 735 |
Later than two years and not later than five years [member] | Government and Research Loans [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total | 2,851 | ||
Later than five years [member] | Trade and other payables [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total | |||
Later than five years [member] | Liquidity risk [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total | |||
Later than five years [member] | Government and Research Loans [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total | £ 3,317 |
Schedule of unused tax losses c
Schedule of unused tax losses carried forward (Details) - GBP (£) £ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Gross losses | £ 67,210 | £ 63,183 | £ 49,565 |
Potential deferred tax asset | £ 16,925 | £ 13,076 | £ 8,426 |
Schedule of deferred tax liabil
Schedule of deferred tax liability (Details) - GBP (£) £ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Asset | £ 1,581 | ||
Liability | (1,581) | ||
Net |
Schedule of detailed informat_2
Schedule of detailed information about share capital (Details) - GBP (£) | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | ||||
Amount of allotted and fully paid - classified as equity | £ 1,098,494 | £ 1,098,469 | £ 1,063,075 | £ 1,023,496 |
Ordinary shares [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Number of authorised shares | 98,493,413 | 98,468,387 | 63,073,852 | 23,494,981 |
Amount of allotted and fully paid - classified as equity | £ 98,493 | £ 98,468 | £ 63,074 | £ 23,495 |
Deferred Shares [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Number of authorised shares | 1,000,001 | 1,000,001 | 1,000,001 | 1,000,001 |
Amount of allotted and fully paid - classified as equity | £ 1,000,001 | £ 1,000,001 | £ 1,000,001 | £ 1,000,001 |
Schedule Of Ordinary and Deferr
Schedule Of Ordinary and Deferred Shares (Details) - GBP (£) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | ||||
Balance at beginning (in shares) | £ 106,517 | £ 96,426 | £ 85,638 | £ 69,870 |
Placing and Open Offer (see note 16) 26 February 2019 (in pound per share) | £ 0.77 | |||
Placing and Open Offer (see note 16) 26 February 2019 | £ 13,406 | |||
Share issue to SIPP trustee (see note 27) 8 October 2019 (in pound per share) | £ 0.001 | |||
Registered Direct Offering 29 October 2019 (in pound per share) | £ 0.7874 | |||
Registered Direct Offering 29 October 2019 | £ 2,362 | |||
Placing & Registered Direct Offering 18 May 2020 (in pound per share) | £ 0.27 | |||
Placing & Registered Direct Offering 18 May 2020 | £ 4,255 | |||
Placing 27 July 2020 (in pound per share) | £ 0.27 | |||
Placing 27 July 2020 | £ 5,750 | |||
Exercise of warrants 19 August 2020 | £ 783 | |||
Share issue to SIPP trustee (see note 27) 30 September 2020 (in pound per share) | £ 0.001 | |||
Share price 19 February 2021 Exercise of warrants (in pound per share) | £ 0.298 | |||
Total conjsideration 19 February 2021 Exercise of warrants | £ 91 | |||
Share price 6 July 2021 Placing (in pound per share) | £ 0.285 | |||
Total conjsideration 6 July 2021 Placing | £ 10,000 | |||
Balance at end | £ 106,517 | £ 96,426 | £ 85,638 | |
Ordinary shares [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Balance at beginning (in shares) | 98,468,387 | 63,073,852 | 23,494,981 | 3,059,207 |
Placing and Open Offer (see note 16) 26 February 2019 (in shares) | 17,410,774 | |||
Share issue to SIPP trustee (see note 27) 8 October 2019 (in shares) | 25,000 | 25,000 | ||
Registered Direct Offering 29 October 2019 (in shares) | 3,000,000 | |||
Placing & Registered Direct Offering 18 May 2020 (in shares) | 15,757,576 | |||
Placing 27 July 2020 (in shares) | 21,296,295 | |||
Exercise of warrants 19 August 2020 (in shares) | 2,500,000 | |||
Exercise of warrants | 26 | 306,815 | 306,815 | |
Placing | 35,087,720 | |||
Balance at end | 98,468,387 | 63,073,852 | 23,494,981 | |
Deferred Shares [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Balance at beginning (in shares) | 1,000,001 | 1,000,001 | 1,000,001 | 1,000,001 |
Exercise of warrants | ||||
Balance at end | 1,000,001 | 1,000,001 | 1,000,001 |
Schedule of reserves (Details)
Schedule of reserves (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Share premium [member] | |
IfrsStatementLineItems [Line Items] | |
Description of nature and purpose of reserves within equity | Amount subscribed for share capital in excess of nominal value. |
Merger Reserve [member] | |
IfrsStatementLineItems [Line Items] | |
Description of nature and purpose of reserves within equity | Represents the difference between the fair value and nominal value of shares issued on the acquisition of subsidiary companies where the Company has elected to take advantage of merger accounting. |
Reserve of exchange differences on translation [member] | |
IfrsStatementLineItems [Line Items] | |
Description of nature and purpose of reserves within equity | Gains/losses arising on retranslating the net assets of overseas operations into sterling. |
Warrant reserve [member] | |
IfrsStatementLineItems [Line Items] | |
Description of nature and purpose of reserves within equity | Represents the fair value of warrants denominated in £ at the date of grant |
Retained earnings [member] | |
IfrsStatementLineItems [Line Items] | |
Description of nature and purpose of reserves within equity | All other net gains and losses and transactions with owners (e.g. dividends) not recognised elsewhere. |
Details of all share options gr
Details of all share options granted under the Schemes are set out below: (Details) | 1 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2021 Number | Aug. 31, 2021 Number | Jul. 31, 2021 Number | Jun. 30, 2020 Number | Apr. 30, 2020 Number | Oct. 31, 2019 Number | Apr. 30, 2019 Number | Dec. 31, 2021 shares £ / shares | Dec. 31, 2020 shares £ / shares | Dec. 31, 2019 shares £ / shares | |
IfrsStatementLineItems [Line Items] | ||||||||||
Beginning of the year | 1,482,978 | 336,026 | 158,966 | |||||||
Granted | 120,000 | 50,000 | 1,709,000 | 1,363,000 | 100,000 | 50,000 | 219,000 | 1,879,000 | 1,463,000 | 269,000 |
Grant date | (150) | (33,737) | ||||||||
Forfeited | (728,552) | (282,311) | (91,940) | |||||||
Beginning of the year | 2,633,276 | 1,482,978 | 336,026 | |||||||
Options exercisable | 179,632 | 195,171 | 131,094,000 | |||||||
Weighted average exercise price of outstanding options | £ / shares | £ 0.538 | £ 0.835 | £ 8.48 | |||||||
Weighted average exercise price of options forfeited | £ / shares | 83.30 | 26.183 | ||||||||
Weighted average exercise price of options forfeited | £ / shares | 0.447 | 3.648 | 13.26 | |||||||
Weighted average exercise price of options granted | £ / shares | £ 0.276 | £ 0.205 | £ 1.38 | |||||||
Weighted average remaining contractual life of outstanding options | 9 years | 9 years 2 months 12 days | 7 years 10 months 24 days | |||||||
Date Of Grant 6 [Member] | ||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||
Grant date | Sep. 13, 2011 | Sep. 13, 2011 | Sep. 13, 2011 | |||||||
Beginning of the year | 150 | 150 | 150 | |||||||
Granted | 0 | |||||||||
Grant date | (150) | |||||||||
Forfeited | 0 | |||||||||
Beginning of the year | 0 | 150 | 150 | |||||||
Exercise Price | £ / shares | £ 83.80 | £ 83.80 | £ 83.80 | |||||||
30 June 2014 [member] | ||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||
Grant date | Apr. 20, 2012 | Apr. 20, 2012 | Apr. 20, 2012 | |||||||
Beginning of the year | 1,589 | 1,589 | 1,589 | |||||||
Granted | 0 | |||||||||
Grant date | 0 | |||||||||
Forfeited | 0 | |||||||||
Beginning of the year | 1,589 | 1,589 | 1,589 | |||||||
Exercise Price | £ / shares | £ 83.80 | £ 83.80 | £ 83.80 | |||||||
Date Of Grant 8 [Member] | ||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||
Grant date | May 09, 2014 | May 09, 2014 | May 09, 2014 | |||||||
Beginning of the year | 10,000 | 10,000 | 10,000 | |||||||
Granted | 0 | |||||||||
Grant date | 0 | |||||||||
Forfeited | 0 | |||||||||
Beginning of the year | 10,000 | 10,000 | 10,000 | |||||||
Exercise Price | £ / shares | £ 1.50 | £ 1.50 | £ 1.50 | |||||||
Date Of Grant 9 [Member] | ||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||
Grant date | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |||||||
Beginning of the year | 500 | 18,500 | 21,500 | |||||||
Granted | 0 | |||||||||
Grant date | 0 | |||||||||
Forfeited | 0 | (18,000) | (3,000) | |||||||
Beginning of the year | 500 | 500 | 18,500 | |||||||
Exercise Price | £ / shares | £ 1.50 | £ 1.50 | £ 1.50 | |||||||
Date Of Grant 11 [Member] | ||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||
Grant date | Oct. 31, 2016 | Oct. 31, 2016 | Oct. 31, 2016 | |||||||
Beginning of the year | 7,921 | 16,271 | 23,411 | |||||||
Granted | 0 | |||||||||
Grant date | 0 | (850) | ||||||||
Forfeited | (890) | (7,500) | (7,140) | |||||||
Beginning of the year | 7,031 | 7,921 | 16,271 | |||||||
Exercise Price | £ / shares | £ 53.60 | £ 53.60 | £ 53.60 | |||||||
Date Of Grant 17 [Member] | ||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||
Grant date | Dec. 19, 2016 | Dec. 19, 2016 | Dec. 19, 2016 | |||||||
Beginning of the year | 10,018 | 22,391 | 35,866 | |||||||
Granted | 0 | |||||||||
Grant date | 0 | (1,562) | ||||||||
Forfeited | (2,062) | (10,811) | (13,475) | |||||||
Beginning of the year | 7,956 | 10,018 | 22,391 | |||||||
Exercise Price | £ / shares | £ 24.20 | £ 24.20 | £ 24.20 | |||||||
1 April 2010 [member] | ||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||
Grant date | Dec. 15, 2017 | Dec. 15, 2017 | Dec. 15, 2017 | |||||||
Beginning of the year | 3,300 | 29,560 | 45,885 | |||||||
Granted | 0 | |||||||||
Grant date | 0 | (13,310) | ||||||||
Forfeited | (2,100) | (12,950) | (16,325) | |||||||
Beginning of the year | 1,200 | 3,300 | 29,560 | |||||||
Exercise Price | £ / shares | £ 9.20 | £ 9.20 | £ 9.20 | |||||||
Date Of Grant 21 [Member] | ||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||
Grant date | Apr. 24, 2019 | Apr. 24, 2019 | Apr. 24, 2019 | |||||||
Beginning of the year | 45,500 | 169,500 | 0 | |||||||
Granted | 0 | 219,000 | ||||||||
Grant date | 0 | |||||||||
Forfeited | (33,000) | (124,000) | (49,500) | |||||||
Beginning of the year | 12,500 | 45,500 | 169,500 | |||||||
Exercise Price | £ / shares | £ 1.46 | £ 1.46 | £ 1.46 | |||||||
Date Of Grant 22 [Member] | ||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||
Grant date | Oct. 02, 2019 | Oct. 02, 2019 | Oct. 02, 2019 | |||||||
Beginning of the year | 30,000 | 50,000 | 0 | |||||||
Granted | 0 | 50,000 | ||||||||
Grant date | 0 | |||||||||
Forfeited | 0 | (20,000) | ||||||||
Beginning of the year | 30,000 | 30,000 | 50,000 | |||||||
Exercise Price | £ / shares | £ 1.05 | £ 1.05 | £ 1.05 | |||||||
Date Of Grant 23 [Member] | ||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||
Grant date | Apr. 17, 2020 | Apr. 17, 2020 | ||||||||
Beginning of the year | 100,000 | 0 | ||||||||
Granted | 0 | 100,000 | ||||||||
Grant date | 0 | |||||||||
Forfeited | 0 | |||||||||
Beginning of the year | 100,000 | 100,000 | 0 | |||||||
Exercise Price | £ / shares | £ 0.24 | £ 0.24 | ||||||||
Date Of Grant 24 [Member] | ||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||
Grant date | Jun. 17, 2020 | Jun. 17, 2020 | ||||||||
Beginning of the year | 1,274,000 | 0 | ||||||||
Granted | 0 | 1,363,000 | ||||||||
Grant date | 0 | |||||||||
Forfeited | (410,500) | (89,000) | ||||||||
Beginning of the year | 863,500 | 1,274,000 | 0 | |||||||
Exercise Price | £ / shares | £ 0.202 | £ 0.202 | ||||||||
Date Of Grant 29 [Member] | ||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||
Grant date | Jul. 15, 2021 | |||||||||
Beginning of the year | 0 | |||||||||
Granted | 1,709,000 | |||||||||
Grant date | 0 | |||||||||
Forfeited | (280,000) | |||||||||
Beginning of the year | 1,429,000 | 0 | ||||||||
Exercise Price | £ / shares | £ 0.28 | |||||||||
Date Of Grant 33 [Member] | ||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||
Grant date | Aug. 02, 2021 | |||||||||
Beginning of the year | 0 | |||||||||
Granted | 50,000 | |||||||||
Grant date | 0 | |||||||||
Forfeited | 0 | |||||||||
Beginning of the year | 50,000 | 0 | ||||||||
Exercise Price | £ / shares | £ 0.27 | |||||||||
Date Of Grant 37 [Member] | ||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||
Grant date | Sep. 01, 2021 | |||||||||
Beginning of the year | 0 | |||||||||
Granted | 120,000 | |||||||||
Grant date | 0 | |||||||||
Forfeited | 0 | |||||||||
Beginning of the year | 120,000 | 0 | ||||||||
Exercise Price | £ / shares | £ 0.26 | |||||||||
13 September 2011 [member] | ||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||
Grant date | Apr. 01, 2010 | Apr. 01, 2010 | ||||||||
Beginning of the year | 0 | 1,255 | 1,255 | |||||||
Grant date | (1,255) | |||||||||
Beginning of the year | 0 | 1,255 | ||||||||
Exercise Price | £ / shares | £ 80 | £ 80 | ||||||||
Date Of Grant 5 [Member] | ||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||
Grant date | Aug. 20, 2010 | Aug. 20, 2010 | ||||||||
Beginning of the year | 2,088 | 2,088 | ||||||||
Grant date | (2,088) | |||||||||
Beginning of the year | 2,088 | |||||||||
Exercise Price | £ / shares | £ 83.80 | £ 83.80 | ||||||||
Date Of Grant 10 [Member] | ||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||
Grant date | Jul. 11, 2014 | Jul. 11, 2014 | ||||||||
Beginning of the year | 100 | 100 | ||||||||
Grant date | (50) | |||||||||
Forfeited | (50) | |||||||||
Beginning of the year | 100 | |||||||||
Exercise Price | £ / shares | £ 1.50 | £ 1.50 | ||||||||
Date Of Grant 12 [Member] | ||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||
Grant date | Dec. 14, 2016 | Dec. 14, 2016 | ||||||||
Beginning of the year | 400 | 400 | ||||||||
Grant date | (400) | |||||||||
Beginning of the year | 400 | |||||||||
Exercise Price | £ / shares | £ 31 | £ 31 | ||||||||
Date Of Grant 13 [Member] | ||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||
Grant date | Dec. 14, 2016 | Dec. 14, 2016 | ||||||||
Beginning of the year | 500 | 500 | ||||||||
Grant date | (500) | |||||||||
Beginning of the year | 500 | |||||||||
Exercise Price | £ / shares | £ 34 | £ 34 | ||||||||
Date Of Grant 14 [Member] | ||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||
Grant date | Dec. 14, 2016 | Dec. 14, 2016 | ||||||||
Beginning of the year | 2,000 | 2,000 | ||||||||
Grant date | (2,000) | |||||||||
Beginning of the year | 2,000 | |||||||||
Exercise Price | £ / shares | £ 37.40 | £ 37.40 | ||||||||
Date Of Grant 15 [Member] | ||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||
Grant date | Dec. 14, 2016 | Dec. 14, 2016 | ||||||||
Beginning of the year | 1,625 | 1,625 | ||||||||
Grant date | (1,625) | |||||||||
Beginning of the year | 1,625 | |||||||||
Exercise Price | £ / shares | £ 37.60 | £ 37.60 | ||||||||
Date Of Grant 16 [Member] | ||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||
Grant date | Dec. 15, 2016 | Dec. 15, 2016 | ||||||||
Beginning of the year | 4,600 | 4,600 | ||||||||
Grant date | (4,600) | |||||||||
Beginning of the year | 4,600 | |||||||||
Exercise Price | £ / shares | £ 24.20 | £ 24.20 | ||||||||
Date Of Grant 19 [Member] | ||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||
Grant date | Apr. 02, 2018 | Apr. 02, 2018 | ||||||||
Beginning of the year | 997 | 997 | ||||||||
Grant date | (997) | |||||||||
Beginning of the year | 997 | |||||||||
Exercise Price | £ / shares | £ 16.60 | £ 16.60 | ||||||||
Date Of Grant 20 [Member] | ||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||
Grant date | Apr. 02, 2018 | Apr. 02, 2018 | ||||||||
Beginning of the year | 4,500 | 4,500 | ||||||||
Grant date | (4,500) | |||||||||
Beginning of the year | 4,500 | |||||||||
Exercise Price | £ / shares | £ 24.20 | £ 24.20 | ||||||||
Date Of Grant 50 [Member] | ||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||
Grant date | Oct. 31, 2016 | |||||||||
Beginning of the year | 2,500 | |||||||||
Forfeited | (2,500) | |||||||||
Beginning of the year | ||||||||||
Exercise Price | £ / shares | £ 34.20 |
The following information is re
The following information is relevant in the determination of the fair value of options granted during the year 2021 under the equity share based remuneration schemes operated by the Group. (Details) | 1 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2021 Number £ / shares | Aug. 31, 2021 Number £ / shares | Jul. 31, 2021 Number £ / shares | Jun. 30, 2020 Number £ / shares | Apr. 30, 2020 Number £ / shares | Oct. 31, 2019 Number £ / shares | Apr. 30, 2019 Number £ / shares | Dec. 31, 2021 shares | Dec. 31, 2020 shares | Dec. 31, 2019 shares | |
Number of options | 120,000 | 50,000 | 1,709,000 | 1,363,000 | 100,000 | 50,000 | 219,000 | 1,879,000 | 1,463,000 | 269,000 |
Option pricing models used | Black-Scholes | Black-Scholes | Black-Scholes | Black-Scholes | Black-Scholes | Black-Scholes | Black-Scholes | |||
Share price | Number | 0.255 | 0.265 | 0.2775 | 0.213 | 0.24 | 1.126 | 2.30 | |||
Exercise price of options issued in year | £ / shares | £ 0.255 | £ 0.265 | £ 0.2775 | £ 0.202 | £ 0.24 | £ 1.05 | £ 1.46 | |||
Contractual life | 10 years | 10 years | 10 years | 10 years | 10 years | 10 years | 10 years | |||
Expected life | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | |||
Volatility | 88.11% | 88.59% | 88.63% | 92.55% | 84.76% | 78.30% | 75.30% | |||
Expected dividend yield | 0% | 0% | 0% | 0% | 0% | 0% | 0% | |||
Risk free rate | 0.32% | 0.26% | 0.38% | 0.10% | 0.11% | 0.26% | 0.85% |
Schedule of related party trans
Schedule of related party transactions (Details) - Bio Connection [Member] - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Purchase of good | £ 296 | £ 18 | |
Amounts owed by related parties | £ 8 |
Deferred tax (Details Narrative
Deferred tax (Details Narrative) - GBP (£) £ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2019 | |
Net deferred tax assets | £ 1,600 | |
Description of deferred tax asset | Deferred tax asset balances disclosed as at 31 December 2021 have been calculated at 25%. The Finance Bill 2021 enacts an increase in the tax rate to 25% from 1 April 2023. |
Related party transactions (Det
Related party transactions (Details Narrative) - GBP (£) £ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Contingent liabilites | £ 190 | £ 258 |
Schedule Of Unaudited Results E
Schedule Of Unaudited Results Explanatory (Details) - GBP (£) £ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||||
Grant revenue | £ 163 | £ 362 | |||
Research and development costs | £ (2,413) | £ (2,010) | (4,654) | (6,068) | (7,843) |
Administrative costs | (1,849) | (1,656) | (2,946) | (4,958) | (3,841) |
Loss from operations | (3,778) | (3,234) | (6,998) | (23,040) | (11,318) |
Finance expense | (24) | (156) | (44) | (431) | (97) |
Loss before tax | (3,398) | (3,390) | (6,106) | (23,470) | (10,923) |
Taxation | £ 337 | £ 236 | (646) | (1,281) | (1,785) |
Loss from operations after tax | (5,460) | (22,189) | (9,138) | ||
Discontinued operations [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Grant revenue | 163 | 362 | |||
Total revenue | 163 | ||||
Research and development costs | (2,820) | (6,624) | |||
Administrative costs | (1,146) | (3,775) | |||
Loss from operations | (3,803) | (12,265) | |||
Finance expense | (11) | (97) | |||
Loss before tax | (3,814) | (11,870) | |||
Taxation | (21) | (1,785) | |||
Loss from operations after tax | £ (3,835) | £ (9,138) |