Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document And Entity Information | |
Entity Registrant Name | InflaRx N.V. |
Entity Central Index Key | 0001708688 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2019 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Is Entity a Well-known Seasoned Issuer? | No |
Is Entity a Voluntary Filer? | No |
Is Entity's Reporting Status Current? | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Shell Company | false |
Entity Interactive Data Current | Yes |
Entity Incorporation State Country Code | P7 |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Common Stock, Shares Outstanding | 26,105,255 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2019 |
Consolidated statements of comp
Consolidated statements of comprehensive loss - EUR (€) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Expenses | |||
Research and development expenses | € (44,582,136) | € (25,028,554) | € (14,414,628) |
General and administrative expenses | (12,501,048) | (12,786,869) | (5,138,498) |
Total operating expenses | (57,083,184) | (37,815,422) | (19,553,126) |
Other income | 400,253 | 303,860 | 115,525 |
Other expenses | (85,242) | (4,802) | (7,644) |
Operating result | (56,768,173) | (37,516,364) | (19,445,245) |
Finance income | 6,220,320 | 10,432,695 | 130,032 |
Finance expenses | (2,706,964) | (2,730,964) | (4,922,535) |
Net financial result | 3,513,355 | 7,701,731 | (4,792,503) |
Loss for the period | € (53,254,817) | € (29,814,634) | € (24,237,748) |
Share information | |||
Weighted average number of shares outstanding | 26,004,519 | 25,095,027 | 9,410,524 |
Loss per share in euro, (basic/diluted) | € (2.05) | € (1.19) | € (2.58) |
Loss for the period | € (53,254,817) | € (29,814,634) | € (24,237,748) |
Other comprehensive income that may be reclassified to profit or loss in subsequent periods: | |||
Exchange differences on translation of foreign operations | 2,177,033 | 50,196 | 0 |
Total comprehensive loss | € (51,077,785) | € (29,764,438) | € (24,237,748) |
Consolidated statements of fina
Consolidated statements of financial position - EUR (€) | Dec. 31, 2019 | Dec. 31, 2018 |
Non-current assets | ||
Property, plant and equipment | € 1,413,297 | € 624,668 |
Intangible assets | 452,400 | 222,866 |
Non-current other non-financial assets | 452,217 | 0 |
Non-currernt financial assets | 272,614 | 207,444 |
Total non-current assets | 2,590,528 | 1,054,979 |
Current assets | ||
Current other non-financial assets | 3,500,884 | 1,588,702 |
Current financial assets | 82,353,867 | 101,184,240 |
Cash and cash equivalents | 33,131,280 | 55,386,240 |
Total current assets | 118,986,031 | 158,159,183 |
Total assets | 121,576,558 | 159,214,161 |
Equity | ||
Issued capital | 3,132,631 | 3,115,725 |
Share premium | 211,006,606 | 211,021,835 |
Other capital reserves | 25,142,213 | 18,310,003 |
Accumulated deficit | (134,362,006) | (81,107,188) |
Other components of equity | 2,227,228 | 50,196 |
Total equity | 107,146,673 | 151,390,571 |
Non-current liabilities | ||
Lease liabilites | 330,745 | 0 |
Provisions and government grants | 39,013 | 67,945 |
Total non-current liabilities | 369,758 | 67,945 |
Current liabilities | ||
Lease liabilities | 515,203 | 0 |
Employee benefits | 975,629 | 789,800 |
Social securities, other tax and non-financial liabilities | 105,634 | 308,533 |
Trade and other payables | 12,413,662 | 6,657,312 |
Provisions | 50,000 | 0 |
Total current liabilities | 14,060,128 | 7,755,645 |
Total Liabilities | 14,429,886 | 7,823,590 |
Total equity and liabilities | € 121,576,558 | € 159,214,161 |
Consolidated statements of chan
Consolidated statements of changes in equity - EUR (€) | Shares Outstanding | Issued Capital | Share Premium | Other Capital Reserves | Accumulated Deficit | Other Components of Equity | Total |
Beginning balance, shares at Dec. 31, 2016 | 2,362,500 | ||||||
Beginning balance, amount at Dec. 31, 2016 | € 31,428 | € 0 | € 1,325,006 | € (27,054,806) | € 8,839 | € (25,689,533) | |
Loss for the period | (24,237,748) | (24,237,748) | |||||
Exchange differences on translation of foreign operations | 0 | ||||||
Total comprehensive loss | (24,237,748) | (24,237,748) | |||||
Issue of common shares, shares | 7,068,129 | ||||||
Issue of common shares, amount | 848,175 | 90,055,312 | 90,903,488 | ||||
Transaction costs | (9,114,770) | (9,114,770) | |||||
Equity-settled share-based payment | 4,550,105 | 4,550,105 | |||||
Total contributions, shares | 7,068,129 | ||||||
Total contributions, amount | 848,175 | 80,940,542 | 4,550,105 | 86,338,823 | |||
Reorganization, shares | 16,482,071 | ||||||
Reorganization, amount | 1,977,849 | 80,698,025 | 350,242 | 83,026,115 | |||
Liquidation of a subsidiary | (8,839) | (8,839) | |||||
Total changes in ownership interest, shares | 16,482,071 | ||||||
Total changes in ownership interests, amount | 1,977,849 | 80,698,025 | 350,242 | (8,839) | 83,017,276 | ||
Total transactions with owners of the Company, shares | 23,550,200 | ||||||
Total transactions with owners of the Company, amount | 2,826,024 | 161,638,566 | 4,900,347 | (8,839) | 169,356,099 | ||
Ending balance, shares at Dec. 31, 2017 | 23,812,100 | ||||||
Ending balance, amount at Dec. 31, 2017 | 2,857,452 | 161,638,566 | 6,225,353 | (51,292,555) | 0 | 119,428,816 | |
Loss for the period | (29,814,634) | (29,814,634) | |||||
Exchange differences on translation of foreign operations | 50,196 | 50,196 | |||||
Total comprehensive loss | (29,814,634) | 50,196 | (29,764,438) | ||||
Issue of common shares, shares | 1,850,000 | ||||||
Issue of common shares, amount | 222,000 | 52,768,733 | 52,990,733 | ||||
Transaction costs | (3,801,265) | (3,801,265) | |||||
Equity-settled share-based payment | 12,084,651 | 12,084,651 | |||||
Share options exercised, shares | 302,279 | ||||||
Share options exercised, amount | 36,273 | 415,801 | 452,075 | ||||
Total contributions, shares | 2,152,279 | ||||||
Total contributions, amount | 258,273 | 49,383,269 | 12,084,651 | 61,726,194 | |||
Total transactions with owners of the Company, shares | 2,152,279 | ||||||
Total transactions with owners of the Company, amount | 258,273 | 49,383,269 | 12,084,651 | 61,726,194 | |||
Ending balance, shares at Dec. 31, 2018 | 25,964,379 | ||||||
Ending balance, amount at Dec. 31, 2018 | 3,115,725 | 211,021,835 | 18,310,003 | (81,107,188) | 50,196 | 151,390,571 | |
Loss for the period | (53,254,817) | (53,254,817) | |||||
Exchange differences on translation of foreign operations | 2,177,033 | 2,177,033 | |||||
Total comprehensive loss | (53,254,817) | 2,177,033 | (51,077,785) | ||||
Transaction costs | 0 | ||||||
Equity-settled share-based payment | 6,832,210 | 6,832,210 | |||||
Share options exercised, shares | 140,876 | ||||||
Share options exercised, amount | 16,905 | (15,229) | 1,676 | ||||
Total contributions, shares | 140,876 | ||||||
Total contributions, amount | 16,905 | (15,229) | 6,832,210 | 6,833,886 | |||
Total transactions with owners of the Company, shares | 140,876 | ||||||
Total transactions with owners of the Company, amount | 16,905 | (15,229) | 6,832,210 | 6,833,886 | |||
Ending balance, shares at Dec. 31, 2019 | 26,105,255 | ||||||
Ending balance, amount at Dec. 31, 2019 | € 3,132,631 | € 211,006,606 | € 25,142,213 | € (134,362,006) | € 2,227,228 | € 107,146,673 |
Consolidated statements of cash
Consolidated statements of cash flows - EUR (€) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flow from Operations | |||
Loss for the period | € (53,254,817) | € (29,814,634) | € (24,237,748) |
Reconciliation from result before taxes to net cash flows | |||
Depreciation & amortization | 663,166 | 173,630 | 70,910 |
Net financial result | (3,513,355) | (7,701,731) | 4,792,503 |
Share based payment expense | 6,832,210 | 12,084,651 | 4,550,105 |
Other non-cash adjustments | (307,849) | 196,699 | 24,076 |
Working capital adjustments | |||
Other non-financial assets | (2,364,399) | (893,602) | (522,818) |
Current financial assets | 0 | (316,112) | 89,599 |
Employee benefits | 235,500 | 494,837 | 132,305 |
Social securities and current other tax liabilities | (209,948) | 304,627 | (30,024) |
Trade payables and other liabilities | 5,734,795 | 2,243,137 | 2,912,740 |
Interest received | 3,001,109 | 1,679,250 | 66,391 |
Interest paid | (20,903) | 0 | 0 |
Net cash used in operating activities | (43,204,492) | (21,549,248) | (12,151,962) |
Cash flow from investing activities | |||
Cash outflow from the purchase of intangible assets, laboratory and office equipment | (594,889) | (806,531) | (148,542) |
Cash outflow for the investment in non-current financial assets | (75,543) | (209,705) | (18,481) |
Proceeds from the disposal of non-current other financial assets | 0 | 21,811 | 0 |
Proceeds from the disposal of current financial assets or repayment of maturing securities | 103,559,395 | 7,990,204 | 0 |
Purchase of current & non-current financial assets | (82,547,409) | (106,445,120) | 0 |
Net cash flows used in investing activities | 20,341,554 | (99,449,341) | (167,023) |
Cash flow from financing activities | |||
Proceeds from issuance of share capital | 0 | 52,990,733 | 90,903,488 |
Transaction cost from issuance of share capital | 0 | (3,801,265) | (9,114,770) |
Proceeds from exercise of share options | 1,676 | 452,075 | 0 |
Proceeds from issuance of preferred shares | 0 | 0 | 27,012,050 |
Repayment of leasing debt | (296,020) | 0 | 0 |
Net cash flows from/(used in) financing activities | (294,344) | 49,641,542 | 108,800,767 |
Effect of exchange rate changes | 902,321 | 3,461,399 | (2,316,631) |
Change in cash and cash equivalents | (22,254,960) | (71,357,047) | 94,165,152 |
Cash and cash equivalents at beginning of period | 55,386,240 | 123,281,888 | 29,116,737 |
Cash and cash equivalents at end of period | € 33,131,280 | € 55,386,240 | € 123,281,888 |
Basis of preparation
Basis of preparation | 12 Months Ended |
Dec. 31, 2019 | |
Basis Of Preparation | |
Basis of preparation | The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (IFRS) and interpretations issued by the IFRS Interpretations Committee (IFRS IC) applicable to companies reporting under IFRS. The financial statements comply with IFRS as issued by the International Accounting Standards Board (IASB). The financial statements have been prepared on a historical cost basis except for share-based payments which are measured at fair value. These financial statements are consolidated financial statements for the Group consisting of InflaRx N.V. and its subsidiaries. The financial statements are presented in euro (€). USD ($) is also the functional currency of InflaRx N.V. since January 2019. The functional currency of InflaRx N.V. has changed to U.S. Dollars from €, as most of the income and expenses of InflaRx N.V. occur in U.S. Dollar. The presentation currency of the Group did not change and continues to be €, as the functional currency of the largest operating company InflaRx GmbH continues to be the €. The functional currency of InflaRx Pharmaceutical Inc is USD. All financial information presented in Euro has been rounded to the nearest Euro. Accordingly, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that precede them or may deviate from other tables by one euro at a maximum. Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and could affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is obtained by the Group. They are deconsolidated from the date control ceases. The acquisition method of accounting is used to account for business combinations by the Group. Intercompany transactions, balances and unrealized gains on transactions between Group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the accounting policies adopted by the Group |
Information on how numbers were
Information on how numbers were calculated | 12 Months Ended |
Dec. 31, 2019 | |
Statement Table | |
Information on how numbers were calculated | (a) Material profit or loss items 1. Research and development expenses Research and development increased compared to the prior year due to the Company’s expanded activities in the area of clinical studies and manufacturing. The items below drive research and development expenses. Research and development expenses 2019 2018 2017 (in €) Third-party services 36,783,223 15,909,366 8,856,431 manufacturing of clinical material 13,479,235 4,828,534 5,558,719 clinical, pre-clinical 23,303,988 11,080,832 3,297,712 Personnel expenses 6,231,812 8,037,082 4,680,877 share-based compensation expense 2,580,983 5,256,194 3,070,707 Legal and consulting fees 668,676 421,041 643,074 Other expenses 898,425 661,065 234,129 Total 44,582,136 25,028,554 14,414,511 2. General and administrative expenses General and administrative expenses include the items below. Compared to the prior year the increase is mainly caused by higher personnel expenses, as well as expansion of the Company’s business activities and the expense of operating as a public company in the United States. General and administrative expenses 2019 2018 2017 (in €) Personnel expenses 7,534,073 9,146,955 2,948,229 share-based compensation expense 4,251,227 6,828,457 1,479,398 Legal and consulting fees 2,199,640 2,020,447 1,478,210 Other expenses 2,767,335 1,619,467 712,059 Total 12,501,048 12,786,869 5,138,498 Besides numerous smaller line items other expenses mainly include €894 thousands insurance expense (2018: €441 thousands. 2017: €111 thousands) and €504 thousands depreciation and amortization expense (2018: €115 thousands. 2017: €71 thousands). 3. Employee benefits The following table shows the items of employee benefits: Employee benefits 2019 2018 2017 (in €) Wages and salaries 5,974,807 4,501,840 2,896,929 Social Security contributions (employer's share) 562,255 350,024 182,189 Equity-settled share-based payments 6,832,210 12,084,651 4,550,105 Other 396,613 247,522 — Total 13,765,885 17,184,037 7,629,223 The number of employees rose to 43.7 full time equivalents (FTE) at the end of 2019 from 36.8 FTE at the end of 2018, respectively 20.0 FTE at the end of 2017 (numbers as of balance sheet date, not an average number). 4. Net Financial Result The Net Financial Result is comprised of the following items: Finance income 2019 2018 2017 (in €) Foreign exchange income 3,379,644 8,249,853 — Interest income 2,840,676 2,182,842 130,032 Total 6,220,320 10,432,695 130,032 Finance costs Foreign exchange expense 2,684,699 2,623,782 2,358,631 Other 22,265 107,182 2,563,904 Total 2,706,964 2,730,964 4,922,535 Net Financial Result 3,513,356 7,701,731 (4,792,503) Foreign exchange income and expense is mainly derived from group entities that do not use U.S. dollar as functional currency. Those entities translate U.S. dollar cash, cash equivalents and marketable securities at the exchange rates prevailing on the reporting date. Any resulting translation differences are recognized in profit and loss. These gains (€3,380 thousand in 2019, €8,250 thousand in 2018 and € nil in 2017) and losses (€2,685 thousand in 2019, €2,624 thousand in 2018 and €2,358 thousand in 2017) are caused by the exchange rates on the reporting dates, and may not ultimately be realized. Any such gains or losses ultimately will be realized when U.S. dollar funds are used for R&D expenses or other activities. Other finance cost in 2017 was mainly driven by interest expense for preferred shares (€2,229 thousand). (b) Income tax expense InflaRx N.V. and its German subsidiary InflaRx GmbH are subject to corporate taxes, a solidarity surcharge and trade taxes. InflaRx Pharmaceutical Inc. is subject to U.S. federal and state tax. In prior years as well as in 2017 and 2018 the Group did not incur any income tax. Taxes paid were reimbursed after annual tax declaration. The same applies for the year 2019. The Group has the following tax carry forwards: December 31, 2019 December 31, 2018 (in €) InflaRx N.V. 75,767,524 33,571,438 InflaRx GmbH 34,786,686 34,787,686 InflaRx Pharmaceutical Inc. 3,816,023 1,651,579 Since January 1, 2018 InflaRx GmbH has distributed its losses to the parent Company InflaRx N.V. under a profit and loss transfer agreement. This tax group was formed in Germany and is subject to German tax legislation. German tax loss carried forwards are available indefinitely for offsetting against future taxable profits. Tax losses of InflaRx GmbH are frozen from 2018 onwards due to the tax Group with InflaRx N.V. The Group recognizes deferred tax assets arising from tax loss carried forwards only to the extent that the Group has sufficient taxable temporary differences or there is convincing evidence that sufficient taxable profit will be available against which the unused tax losses can be utilized. As of December 31, 2019, management’s judgment is that such convincing evidence is currently not sufficiently available and a deferred tax asset is therefore not recognized. Furthermore, current tax assets and liabilities would be offset only if certain criteria are met. The tables below show a reconciliation between current income taxes recognized in profit or loss and the product of loss before tax multiplied by the Company's applicable tax rate. The applicable tax rate is composed of 15% corporate income tax and 0.8% solidarity surcharge plus 13.9% trade tax (trade tax is the sum of the Company`s two German locations, 9.7 percentage points must be paid in Jena and 4.2 percentage points in Martinsried respectively; the split between Jena and Martinsried is based on salary costs, therefore the tax rate decreased as the Company hired new personnel in Martinsried): InflaRx in Germany 2019 2018 2017 (in €) Loss before taxes (53,254,817) (29,814,634) (24,237,748) Tax rate 29.7% 29.2% 31.2% Tax benefits at tax rate 15,815,083 8,715,116 7,559,754 Tax losses for which no deferred tax asset was recognized (15,815,083) (8,715,116) (7,559,754) Income taxes — — — The applicable tax rate on income in the U.S. is composed of 21% federal tax and 6% state tax: InflaRx in the U.S. 2019 2018 2017 (in U.S. dollars) Loss before taxes (2,177,602) (1,891,058) — Tax rate 27% 27% — Tax benefits at tax rate 587,953 510,586 — Tax losses for which no deferred tax asset was recognized (587,953) (510,586) — Income taxes — — — (c) Property, plant and equipment Buildings, Office properties Laboratory, office and other equipment Advance payments Total Cost (in €) At January 1, 2018 — 394,609 — 394,609 Additions — 504,423 86,068 590,491 Disposals — 1,544 — 1,544 Reclassification — 86,068 (86,068) — Exchange differences — 8,534 — 8,534 At December 31, 2018 — 995,179 — 995,179 Right-of-use assets at January 1, 2019, see note 1. (e) 695,614 35,058 — 730,672 Additions 636,754 259,647 54,338 950,740 Disposals (266,057) (142,400) — (408,457) Reclassification — 54,408 (54,408) — Exchange differences 1,512 6,639 70 8,221 At December 31, 2019 1,067,823 1,208,531 — 2,276,355 Depreciation At January 1, 2018 — (221,970) — (221,970) Depreciation charge for the year — (148,375) — (148,375) Exchange differences — (166) — (166) At December 31, 2018 — (370,510) — (370,510) Depreciation charge for the year (283,350) (273,458) — (556,808) Disposals 38,008 26,235 — 64,243 Exchange differences 216 (198) — 18 At December 31, 2019 (245,126) (617,932) — (863,058) Net book value — — — — At December 31, 2019 822,697 590,600 — 1,413,297 At December 31, 2018 — 624,668 — 624,668 (d) Intangible assets Patents and licenses with definite useful life Construction in progress Total Cost (in €) At January 1, 2018 148,749 — 148,749 Additions 97,620 — 97,620 Disposals (17) — (17) Reclassification — 109,852 109,852 Exchange differences — — — At December 31, 2018 246,351 109,852 356,204 Additions 84,449 251,493 335,942 Disposals — — — Reclassification 353,155 (353,155) — Exchange differences (64) — (64) At December 31, 2019 683,891 8,190 692,081 Amortization At January 1, 2018 (108,083) — (108,083) Depreciation charge for the year (25,255) — (25,255) Exchange differences — — — At December 31, 2018 (133,337) — (133,337) Depreciation charge for the year (106,358) — (106,358) Disposals — — — Exchange differences 14 — 14 At December 31, 2019 (239,681) — (239,681) Net book value — — — At December 31, 2019 444,210 8,190 452,400 At December 31, 2018 113,014 109,852 222,866 (e) Leases The Group leases various properties, laboratory and office equipment and cars. Rental contracts are typically made for fixed periods of one to three years but may have renewal options. The lease agreements do not impose any covenants, but leased assets may not be used as security for borrowing purposes. Property and cars are part of the balance sheet line ‘Property, plant and equipment.’ Set out below, are the carrying amounts of the Group’s right-of-use assets and lease liabilities and the movements during the period: Right-of-use assets Foreign exchange Property Cars difference Total Lease liabilities (in €) As of January 1, 2019 695,614 35,058 — 730,672 730,672 Additions 636,754 — 1,512 638,266 636,754 Depreciation charge for the year (245,342) (20,831) 216 (265,957) — Derecognition (266,057) — — (266,057) (228,547) Interest expense — — — — (12,765) Payments (incl. interest and foreign exchange difference) — — — — (281,535) As of December 31, 2019 820,969 14,227 1,728 836,924 844,579 The line “Derecognition” refers to leased office premises, which were replaced by a new office (see line “Additions”). The maturity analysis of lease liabilities is disclosed in the following table: Maturity analysis for capitalized leases Contractual minimum lease obligations Effect of discounting Lease liabilities (in €) Within one year 354,878 7,175 347,703 After one year but not more than five years 500,062 3,185 496,877 More than five years — — — Total 854,940 10,361 844,579 Anticipated future lease expenses were converted with the exchange rate as of December 31, 2019, 1 Euro = 1.1234 USD. The Group also has certain leases of cars and office equipment with lease terms of 12 months or less and leases of office equipment with low value. The Group applies the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for these leases. Maturity analysis for all lease obligations Total Low value leases Short-term leases Capitalized leases (in €) Within one year 371,105 5,387 10,841 354,878 After one year but not more than five years 532,845 12,779 20,005 500,062 More than five years — — — — Total 903,951 18,166 30,845 854,940 The following are the amounts recognized in profit or loss: December 31, 2019* December 31, 2018* (in €) Depreciation expense of right-of-use assets 265,957 — Interest expense on lease liabilities 12,765 — Rental expense from leases 70,451 213,200 short-term leases (included in administrative expenses) 65,348 — leases of low-value assets (included in administrative expenses) 5,103 — Total amounts recognized in profit or loss 349,173 213,200 * in 2019 leases under IFRS 16, in 2018 operating leases under IAS 17 The Group had total cash outflows for leases of €378,035 in 2019 (€213,200 in 2018). The future cash outflows relating to leases that have not yet commenced are disclosed in ‘3.(a) Lease obligations.’ (f) Other non-financial assets Other non-financial assets December 31, 2019 December 31, 2018 (in €) Prepaid expense 1,920,153 1,032,676 Pre-payments 698,891 14,607 Other 1,334,056 541,419 Total 3,953,100 1,588,702 Prepaid expense mainly consists of accrued insurance expense, the non-current portion is € 452,217 in 2019 (nil in 2018). All other non-financial assets are current. Pre-payments mainly relate to prepayments under CRO or manufacturing contracts. (g) Financial assets and financial liabilities Set out below is an overview of financial assets and liabilities, other than cash and short-term deposits, held by the Group as at December 31, 2019 and December 31, 2018: Financial assets and financial liabilities December 31, 2019 December 31, 2018 (in €) Financial assets at amortized cost Non-current financial assets 272,614 207,444 Current financial assets 82,353,867 101,184,240 Financial liabilities at amortized cost Trade and other payables 12,413,662 6,657,312 Interest bearing loans and borrowings Non-current lease liabilities 330,745 — Current lease liabilities 513,834 — The fair value of current and non-current financial assets (primarily quoted debt securities) amounted to €82,661 thousand (level 1). The Group’s debt instruments at amortized cost consist solely of quoted securities that are graded in the top investment category (AA- to AAA) by credit rating agencies such as S&P Global and therefore are considered low credit risk investments. Based on statistical historical probabilities of default, adjusted for forward-looking factors specific to the debtors and the economic environment, the Group believes that the expected credit losses for these debt instruments are immaterial. Furthermore, since the acquisition of these debt securities, their credit ratings have remained stable. The maturities of all securities are between one and eleven months (2018: between six and eleven months), the beard nominal interests range between 1.5% and 2.1% (2018: between 1.0% and 4.9%). (h) Equity As of December 31, 2019, the issued capital of the Company is divided into 26,105,255 common shares. Refer to ‘Consolidated Statements of Changes in Shareholders’ Equity for the Years Ended December 31, 2019, 2018 and 2017.’ (i) Cash and cash equivalents information Cash and cash equivalents December 31, 2019 December 31, 2018 (in €) Short-term deposits Deposits held in U.S. dollars (3 months original maturity and less) 27,803,153 32,918,604 Total 27,803,153 32,918,604 Cash at banks Cash held in euro 1,211,478 21,719,699 Cash held in U.S. dollars 4,116,649 747,937 Total 5,328,127 22,467,636 Total cash and cash equivalents 33,131,280 55,386,240 |
Risk
Risk | 12 Months Ended |
Dec. 31, 2019 | |
Risk | |
Risk | (a) Critical estimates and judgements The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. In preparing these financial statements, the critical judgments made by management in applying the Group's accounting policies involve the determination of the grant date fair value of share-based payment awards (see Note ‘Other information — (e) Share-based payments’ as well as the measurement of R&D expenses that have to be accrued at period end for outstanding invoices (e.g. for pass-through costs charged by the Company’s Contract Research Organizations (‘CROs’)). (b) Financial risk management 1. Financial risk management objectives and policies The Group’s risk management is predominantly controlled by central treasury activities under the Investment Policy approved by the Board of Directors. Those treasury activities identify, evaluate and hedge financial risks consistently with the Group’s operating needs. The board provides policies for overall risk management, covering specific areas, such as foreign exchange risk and credit risk. The Company does not intend to use derivative financial instruments because the Group’s future risk exposures cannot be reliably forecasted (volume of business activity, liquidity needs, foreign exchange exposure). Hedge accounting is not applied as most of the business activity is intended to be executed in U.S. dollars and paid with the U.S. dollars funds raised in public offerings. The foreign exchange exposure from costs incurred in currencies other than euro is deemed immaterial and not worth hedging. The Group’s principal financial assets comprise quoted debt securities with credit ratings range from AA- to AAA. Besides these financial assets, the Group has significant cash and cash equivalents. The Group’s principal financial liabilities comprise trade payables. The main purpose of these financial assets, cash/cash equivalents and liabilities are to finance the Group’s development activities. The Group is exposed to market risk, credit risk and liquidity risk. The Board of Directors reviews and adopts policies for managing each of these risks, which are summarized below. The Group’s senior management oversees the management of these risks. Exposure Measurement Risk Management Market risk Future development costs; Recognized financial assets and liabilities not denominated in euro Forecasted cash flows Sensitivity analysis Achievement of a natural hedge in the future Credit risk Cash and cash equivalents, debt investments Credit rating Diversification of bank deposits, Investment guidelines for debt investments Liquidity R&D and G&A cost and trade payables Rolling cash flow forecast Availability of funds through financing rounds or public offerings 2. Market risk Market risk is the risk that changes in market prices (e.g. due to foreign exchange rates) will affect the Group’s income, expenses or the value of its holdings of financial instruments. The objective of market risk management is to identify, manage and control market risk exposures within acceptable parameters. Foreign exchange risk arises when commercial transactions or recognized assets or liabilities are denominated in a currency that is not an entity’s functional currency. The Group is exposed to transactional foreign currency risk to the extent that there is a mismatch between the currencies in which costs and purchases are denominated and the respective functional currencies of Group companies. The functional currencies of Group companies are primarily the U.S. dollars and euro. The currencies in which these transactions and financial assets are primarily denominated are U.S. dollars and euro. The Group is exposed to the exchange rate between the euro and the U.S. dollars. Due to the initial public offering in 2017 and public offering in 2018, the Group has a significant U.S. dollar amount on its statements of financial position. Currently the Group does not hedge U.S. dollars but intends to achieve a natural hedge by contracting suppliers in U.S. dollars in the future. In 2019 the Group recognized significant foreign exchange gains and losses as the natural hedge is not yet achieved and the functional currency for InflaRx GmbH is euro. The Group is primarily exposed to changes in U.S. dollars/euro exchange rates. The sensitivity of profit or loss to changes in the exchange rates arises mainly from U.S. dollar denominated financial instruments at InflaRx GmbH. In 2019, if the euro had weakened/strengthened by 10% against U.S. dollars with all other variables held constant, the Group`s loss would have been €3.4 million higher/€4.1 million lower, mainly as a result of foreign exchange on translation of U.S. dollars-denominated assets of InflaRx GmbH. Cash, cash equivalents and financial assets that belong to InflaRx GmbH December 31, 2019 (in €) Current financial assets (securities and accrued interest) 32,947,491 Cash and cash equivalents 4,123,532 Total assets exposed to the risk 37,071,023 Conversion rate EUR/USD at reporting date 1/1.1234 Sensitivity analysis: Conversion rate Profit/(loss) carrying amount (in €) Euro weakens by 1% against U.S. dollars 1.1346 (367,040) 36,703,983 Euro strengths by 1% against U.S. dollars 1.1122 374,455 37,445,478 Euro weakens by 5% against U.S. dollars 1.1796 (1,765,287) 35,305,736 Euro strengths by 5% against U.S. dollars 1.0672 1,951,106 39,022,129 Euro weakens by 10% against U.S. dollars 1.2357 (3,370,093) 33,700,930 Euro strengths by 10% against U.S. dollars 1.0111 4,119,003 41,190,026 3. Credit risk The maximum exposure to counterparty credit risk is €115.8 million at December 31, 2019 (December 31, 2018: €156.8 million). This amount equals the carrying amount at year end of cash and cash equivalents (2019: €33.1 million; 2018: €55.4 million) plus financial assets (2019: €82.6 million; 2018: €101.4 million). The cash and cash equivalents are held with banks, what are rated BBB to A based on Standard & Poor’s and Moody’s. The issuer of the money-market funds and other securities are graded in the top investment category (AA- to AAA) by credit rating agencies as S&P Global. 4. Liquidity risk Prudent liquidity risk management involves maintaining sufficient cash and marketable securities and the availability of funding to meet obligations when due. At the end of the reporting period the Group held the following deposits that are expected to readily generate cash inflows for managing liquidity risk. Liquidity December 31, 2019 December 31, 2018 (in €) Short-term deposits 27,803,153 32,918,604 Cash at banks 5,328,127 22,467,636 Marketable Securities (current) 81,895,377 100,868,129 Other (non-current portion) 272,614 207,444 Other (current) 458,491 316,112 Total funds available 115,757,762 156,777,925 The Group continually monitors its risk of a shortage of funds using short and mid-term liquidity planning. This takes into account of the expected cash flows from all activities. The management team performs regular reviews of the budget. In November 2017 and May 2018, InflaRx raised significant funding that it estimates will enable the Group to fund operating expenses and capital expenditure requirements for at least the 12 months from December 31, 2019. The Group expects to require additional funding to continue to advance the development of product candidates. In the event regulatory approval is received and the Company implements a strategy to commercialize the products itself the Group would require additional capital. (c) Capital management The Group’s policy for capital management is to ensure that it maintains its liquidity in order to finance its operating activities, future business development and meet its liabilities when due. The Group manages its capital structure primarily through equity. The Group does not have any financial debt, besides trade and other payables. Under the 2017 long-term incentive plan the board and key employees may participate in the Group’s share price development through long-term remuneration consisting of a share option plan set up in 2017, please refer to Note ‘Other information - (e) Share-based payments.’ No changes were made in the objectives, policies or processes for managing capital during the year. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2019 | |
Commitments | |
Commitments | (a) Lease obligations December 31, 2019 December 31, 2018 (in €) Commitments for minimum lease payments in relation to non-cancellable leases Within one year 371,105 282,711 After one year but not more than five years 532,845 292,300 More than five years — — Total 903,951 575,011 Anticipated future lease expenses were converted with the exchange rate as of December 31, 2019, 1 Euro = 1.1234 USD. Lease obligations consist of payments pursuant to non-cancellable lease agreements mainly relating to the Company`s leases of office space. The lease terms of the Company`s premises expires in the next three years: Jena, Germany December, 2022, Martinsried, Germany May, 2022 and Ann Arbor, United States April, 2021. (b) Other Commitments December 31, 2019 December 31, 2018 (in €) Commitments for minimum payments in relation to non-cancellable operating contracts or services: Within one year 10,602,651 19,623,790 After one year but not more than five years 13,844,857 9,683,700 More than five years — — Total 24,447,508 29,307,490 Anticipated future expenses were converted with the exchange rate as of December 31, 2019, 1 Euro = 1.1234 USD. The Group enters into contracts in the normal course of business with CROs and clinical sites for the conduct of clinical trials, professional consultants for expert advice and other vendors for clinical supply manufacturing or other services. During 2019, the Group did not enter into contracts to purchase property, plant and equipment or patents and trademarks (respectively nil in 2018). |
Other information
Other information | 12 Months Ended |
Dec. 31, 2019 | |
Other Information | |
Other information | (a) Reporting entity and Group’s structure InflaRx N.V. is a Dutch public company with limited liability (naamloze vennootschap) with its corporate seat in Amsterdam, The Netherlands, and is registered in the Commercial Register of The Netherlands Chamber of Commerce Business Register under CCI number 68904312. The Company’s registered office is at Winzerlaer Straße 2 in 07745 Jena, Germany. Since November 10, 2017, InflaRx N.V.’s common shares have been listed on The NASDAQ Global Select Market under the symbol IFRX. InflaRx is a clinical-stage biopharmaceutical Group focused on applying its proprietary anti-C5a technology to discover and develop first-in-class, potent and specific inhibitors of the complement activation factor known as C5a. These consolidated financial statements of InflaRx comprise the Company and its subsidiaries InflaRx GmbH, and, since January 5th, 2018, InflaRx Pharmaceutical Inc., Ann Arbor, Michigan/USA (together, the ‘Group’). (b) Material subsidiaries The Group’s principal subsidiaries at December 31, 2019 are set out below. Unless otherwise stated, they have share capital consisting solely of common shares that are held directly by the Group, and the proportion of ownership interests held equals the voting rights held by the Group. The country of incorporation or registration is also their principal place of business. Name Place of business/ country of incorporation Functional currency Ownership interest held by the Group 2019 2018 Principal activities InflaRx GmbH Germany EUR 100% 100% Principal operating subsidiary, biopharmaceutical company InflaRx Pharmaceutical Inc. U.S. USD 100% 100% Subsidiary for basic research InflaRx GmbH is a clinical-stage biopharmaceutical company founded in 2008. In 2017, InflaRx N.V. became the sole shareholder of InflaRx GmbH through the contribution of the subsidiary’s shares to InflaRx N.V. by its existing shareholders in exchange of new shares issued by InflaRx N.V. InflaRx Pharmaceutical Inc., a Delaware corporation, was founded on January 5, 2018 by InflaRx N.V. (c) Segment reporting The Group has one Segment. The Group is a clinical-stage biopharmaceutical Group focused on applying its proprietary anti-C5a technology. These activities are conducted as own project development. The Executive Board of Directors is the chief operating decision maker. Management of resources and reporting to the decision maker is based on the Group as a whole. All operational activities are conducted in Germany and the United States. No revenues were generated in 2019, 2018 and 2017. The geographic location of the Group’s non-current assets are as follows: · 31 December 2019: €2,217 thousand in Germany and €374 thousand in the United States, · 31 December 2018: €704 thousand in Germany and €351 thousand in the United States. (d) Related party transactions The Group’s executive management comprises the following persons: · Professor Niels C. Riedemann, Chief Executive Officer (CEO) · Professor Renfeng Guo, Chief Scientific Officer (CSO) · Arnd Christ, Chief Financial Officer (CFO) · Jason Marks, Chief Legal Officer, General Counsel (CLO), since January 1, 2019 The Group’s board of directors comprises the following persons: Executive Directors · Professor Niels C. Riedemann, CEO · Professor Renfeng Guo, CSO Non-executive Directors · Nicolas Fulpius, Chairman, Chairman of the Audit Committee · Jens Holstein, Member of the Audit Committee · Richard Brudnick, Member of the Audit Committee since May 2019 · Katrin Uschmann · Lina Ma · Mark Kübler The compensation of the Group’s executive management comprises the following for the twelve months ending December 31: Board Compensation 2019 2018 2017 (in €) Executive Management Short-term employee benefits 2,793,529 2,524,202 1,986,973 Share-based payments 5,218,324 9,801,454 3,187,438 Total 8,011,853 12,325,656 5,174,411 Non-executive Board of Directors Short-term employee benefits 269,031 238,180 80,735 Share-based payments 710,611 1,085,917 42,860 Total 979,642 1,324,098 123,596 Total Compensation 8,991,495 13,649,754 5,298,007 Remuneration of InflaRx’s executive management comprises fixed and variable components and share-based payment awards. In addition, executive management receive supplementary benefits and allowances. We entered into indemnification agreements with our directors and senior management. The indemnification agreements and our Articles of Association require us to indemnify our directors to the fullest extent permitted by law. See ’Item 6. Directors, Senior Management and Employees — B. Compensation — Insurance and indemnification” in the Annual Report on Form 20-F for a description of these indemnification agreements. (e) Share-based payments 1. Equity-settled share-based payment arrangements In the course of its historical financing rounds InflaRx GmbH established equity-settled share-based payment programs. Under these programs, the Company granted to its managing directors and senior executives options to acquire common shares. In total options covering 6,088 shares were granted to senior management and key employees. In addition, 267 options were granted to members of the Supervisory Board of InflaRx GmbH. All options have vested. Those InflaRx GmbH options were converted into options covering 511,392 common shares of InflaRx N.V. at the initial public offering in November 2017, plus the 22,428 options of the Supervisory Board of InflaRx GmbH. In 2019 140,876 shares were issued following the exercise of share options, resulting in proceeds to the Company of €1.7 thousand (2018: €9.8 thousand). The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, share options during the year: 2019 number 2019 WAEP 2018 number 2018 WAEP Outstanding at January 1 289.309 €0.01 533.820 €0.01 Exercised during the year (1) 140.876 €0.01 244.511 €0.01 Outstanding at December 31 148.433 €0.01 289.309 €0.01 Exercisable at December 31 148.433 €0.01 289.309 €0.01 (1) The weighted average share price at the date of exercise of these options was $3.02/€2.70* (2018: $33,82/ €28,62*). * average conversion rates used for one $: 2019 $0.8932, 2018 $0.8464 The weighted average remaining contractual life for the share options outstanding as at 31 December 2019 was 3.43 years (2018: 4,16 years). The exercise price for all options outstanding at the end of the year was €0.01 per share or less (2018: €0.01 or less). Under the terms and conditions of the share option plan 2016 InflaRx GmbH granted rights to subscribe for InflaRx GmbH’s common shares to directors, senior management, and key employees. Prior to the initial public offering, the outstanding awards under the 2016 plan covered an aggregate of 1,239,252 common shares and the exercise price for each outstanding award was €7.81 per share (in each case after giving effect to the corporate reorganization in November 2017). Any additional awards available under the 2016 plan lapsed upon the closing of the Series D financing in October 2017. In 2016, InflaRx also established a share-based payment plan for its non-executive board members and granted options covering 484 shares. Grants under this plan were not subject to service or performance conditions. In 2018 57,768 shares were issued following the exercise of share options, resulting in proceeds to the Company of €442.2 thousand. The following table illustrates the number and weighted average exercise prices of, and movements in, share options during the year: 2019 number 2019 WAEP 2018 number 2018 WAEP Outstanding at January 1 1.181.484 €7,81 1.239.252 €7,81 Exercised during the year (1) — — 57.768 €7,81 Outstanding at December 31 1.181.484 $3,35/€2.98* 1.181.484 €7,81 Exercisable at December 31 1.181.484 $3,35/€2.98* 1.181.484 €7,81 (1) The weighted average share price at the date of exercise in 2018 for these options was $32,82/€27.78*. * conversion rates used for one €: December 31, 2019 $0.8902, average rate 2018 $0.8464 The weighted average remaining contractual life for the share options outstanding as at 31 December 2019 was 11,95 years (2018: 12,95 years). The exercise price for all options outstanding at the end of the year was $3,35/€2.98 (2018: €7,81). In conjunction with the closing of its initial public offering, InflaRx N.V. established a new plan (‘2017 long-term incentive plan‘).The initial maximum number of common shares available for issuance under equity incentive awards granted pursuant to the 2017 long term incentive plan equals 2,341,097 common shares. On January 1, 2021 and on January 1 of each calendar year thereafter, an additional number of shares equal to 3% of the total outstanding common shares on December 31 of the immediately preceding year (or any lower number of shares as determined by the board of directors) will become available for issuance under equity incentive awards granted pursuant to the ‘2017 long-term incentive plan.‘ The following table illustrates the number and weighted average exercise prices of, and movements in, share options during the year: 2019 number 2019 WAEP 2018 number 2018 WAEP Outstanding at January 1 2.051.009 $3,61/€3.16* 1.869.192 $3,35/€2.79* Granted during the year 242.450 $3,25/€2.91* 208.073 $5,96/€5.05* Forfeited during the year 112.354 $6,17/€5.51* 26.256 $3,35/€2.84* Outstanding at December 31 2.181.105 $3,44/€3.06* 2.051.009 $3,61/€3.16* Exercisable at December 31 1.319.548 $3,52/€3.13* 626.933 $3,35/€2.93* * conversion rates used for one €: December 31, 2019 $0.8902, average rate 2019 $0.8932, January 1, 2019/December 31, 2018 $0.8734, average rate 2018 $0.8464 The weighted average remaining contractual life for the share options outstanding as at 31 December 2019 was 6.21 years (2018: 6.74 years). The weighted average fair value of options granted during the year was € 7.29 (2018: €15.63). The range of exercise prices for options outstanding at the end of the year was $2.28/€2.03 to $22.75/€20.25 (2018: $3.35/€2.93 to $22.75/€19.87). On July 3, 2019, the board approved an amendment of the 2016 Share Option Plan and the 2017 Long-Term Incentive Plan. Following the amendment, the exercise price of all vested and unvested options, other than those held by persons who were not employees or directors at the time of the amendment, was reduced to $3.35 per share. The repricing decision on July 3, 2019 affected the 2016 Plan and the 2017 Long-Term Incentive Plan. 1,181,484 share options from the 2016 plan and 2,105,459 share options from the 2017 long-term incentive plan were affected. The valuation of past grants with the new exercise price of $3.35 resulted in incremental fair values of the outstanding options, i.e. additional compensation expense had to be recognized. We refer to the table below regarding the measurement of fair values of share options granted. There were no cancellations or further modifications to the awards in 2019 or 2018. 2. Measurement of fair values of share options granted The fair value of options granted in 2019 under the 2017 long-term incentive plan was determined using the Black-Scholes valuation model. As the Company’s common shares are listed on the Nasdaq Global Select Market, the closing price of the common shares at grant date was used. The modification, resulting from the repricing as described above, increased the fair value of the equity instruments granted under the 2017 Long-Term Incentive Plan and the 2016 Plan. In accordance with IFRS 2.B43, the incremental fair value is recognized over the remaining vesting period, whereas the balance of the grant-date fair value is recognized immediately for fully vested options, or over the remaining original vesting period. The incremental fair value is the difference between the fair value of the modified share-based payment and that of the original share-based payment, both measured at the date of the modification - i.e. July 3, 2019. Other significant inputs into the model are as follows (weighted average): Share options granted Number Per option FX rate as of grant date Per option Share price at grant date / Exercise price Expected volatility Expected life (midpoint based) Risk-free rate (interpolated, U.S. sovereign strips curve) 2018 February 7* 28,002 $13.79 0.82 €11.24 $22.75 0.73 4.9 2.60% May 30 20,000 $22.37 0.86 €19.23 $37.85 0.73 4.6 2.70% July 20 54,000 $19.80 0.86 €16.96 $32.40 0.73 4.9 2.80% Sept. 21* 18,450 $20.17 0.85 €17.15 $33.06 0.73 4.9 3.00% Nov. 20* 12,621 $13.39 0.88 €11.75 $26.02 0.65 4.0 2.93% November 20/ Jan. 1, 2019* 75,000 $14.45 0.88 €12.69 $26.02 0.65 4.8 3,00% 208,073 2019 January 1 — $14.45 0.88 €12.69 $26.02 0.65 4.8 3,00% February 4 18,450 $18.17 0.87 €15.87 $32.63 0.65 4.9 2,60% May, 14 36,000 $22.54 0.89 €20.08 $41.39 0.65 4.7 2.30% Repricing, July 3 — $0.46-$1.08 0.89 €0.40-€0.96 $3.35 1.35 2.3-4.6 2.30% October 24 50,000 $1.96 0.90 €1.76 $2.28 1.35 4.7 1,65% December 16 38,000 $3.07 0.90 €2.75 $3.57 1.35 4.7 1,79% December 16* 100,000 $3.07 0.90 €2.75 $3.57 1.35 4.7 1,79% 242,450 Expected dividends are nil for all share options listed above. * Options granted to the executive management or board of directors On November 20, 2018 75,000 stock options were awarded subject to a specified condition, which was satisfied on January 1, 2019, therefore, the expense for these share options occurred in 2019. Expected volatility has been based on the historical volatility of InflaRx’ share price. Considering a significant price drop on June 5, 2019, we calculated averages including and excluding said trading day which results in an average volatility of 124%. For grants after June 2019 we have selected a volatility of 135% that accounts for expectations of the management. The range of outcomes for the expected life of the instruments has been based on expectations on option holder behavior in the scenarios considered. The dividend yield has no impact due to the anti-dilution clause as defined in the 2017 Long-Term Incentive Plan. Expenses are determined based on the number of share options granted within a tranche and the vesting period of a tranche. This implies two effects: · the more options are granted within a tranche, the higher the expense of a tranche is, and · the shorter the vesting period of a tranche is, the higher the expense of a tranche is. For example, 33.33% of all share options granted are allocated to the first tranche which vests over 1 year after the grant date, whereas 8.33% of all share options granted are allocated to the ninth tranche which vests over three years. The following table shows the recognized compensation expenses per share option plan and the repricing of share options, consummated on July 3, 2019 for the twelve-month period ended December 31, 2019, 2018 and 2017. Anticipated expenses for the twelve-month period ending December 31, 2022, 2021 and 2020 were converted with the exchange rate as of December 31, 2019, 1 Euro = 1.1234 USD: 2022 2021 2020 2019 2018 2017 (in million €) 2016 Plan — — — — — 4.0 2017 Long-Term Incentive plan 0.0 0.3 2.1 5.2 12.1 0.6 Repricing consummated on July 3, 2019 2016 Plan — — — 0.5 — — 2017 Long-Term Incentive plan 0.0 0.0 0.3 1.1 — — Total compensation expense 0.0 0.3 2.4 6.8 12.1 4.6 None of the equity-settled share-based payments awards were dilutive in determining earnings per share due to the Group’s loss position. (f) Loss per share Loss per common share is calculated by dividing the loss of the period by the weighted average number of common shares outstanding during the period. The weighted number of common shares outstanding for the financial year 2019 is 26,004,519, for 2018 is 25,095,027 and for 2017 is 9,410,524. (g) Protective foundation According to the articles of association of the Company, up to 55,000,000 common shares and up to 55,000,000 preferred shares with a nominal value of €0.12 per share are authorized to be issued. All shares are registered shares. No share certificates shall be issued. In order to deter acquisition bids, the Company`s general meeting of shareholders approved the right of an independent foundation under Dutch law, or protective foundation, to exercise a call option pursuant to the call option agreement, upon which preferred shares will be issued by the Company to the protective foundation of up to 100% of the Company’s issued capital held by others than the protective foundation, minus one share. The protective foundation is expected to enter into a finance arrangement with a bank or, subject to applicable restrictions under Dutch law, the protective foundation may request us to provide, or cause the Company`s subsidiaries to provide, sufficient funding to the protective foundation to enable it to satisfy its payment obligation under the call option agreement. These preferred shares will have both a liquidation and dividend preference over the Company`s common shares and will accrue cash dividends at a pre-determined rate. The protective foundation would be expected to re-quire us to cancel its preferred shares once the perceived threat to the Company and its stake-holders has been removed or sufficiently mitigated or neutralized. We are of the opinion that the call option does not represent a significant fair value based on a level 3 valuation, since the preference shares are restricted in use and can be cancelled by us as stated above. As of December 31, 2019, the Company expensed €70,000 of ongoing costs to reimburse expenses incurred by the protective foundation. (h) Summary of significant accounting policies This section describes significant accounting policies adopted in the preparation of these consolidated financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated. The financial statements are for the Group consisting of InflaRx N.V. and its subsidiaries. 1. New and amended standards adopted by the Group The Group has applied the following standards and amendments for the first time for its annual reporting period commencing January 1, 2019. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective. Most of the new standards and amendments listed below did not have any impact on the amounts recognized in prior periods and are not expected to significantly affect the current or future periods, except for IFRS 16 Leases: · IFRS 16 Leases · IFRIC 23 Uncertainty over Tax Treatments. · Prepayment Features with Negative Compensation (Amendments to IFRS 9). · Long-term Interests in Associates and Joint Ventures (Amendments to IAS 28). · Plan Amendment, Curtailment or Settlement (Amendments to IAS 19). · Annual Improvements to IFRS Standards 2015–2017 Cycle – various standards. The Group applies IFRS 16 Leases for the first time in its financial statements. The Group has lease contracts for various items of property, vehicles and other equipment. Before the adoption of IFRS 16, the Group classified each of its leases (as lessee) at the inception date as either a finance lease or an operating lease. A lease was classified as a finance lease if it transferred substantially all of the risks and rewards incidental to ownership of the leased asset to the Group; otherwise it was classified as an operating lease. Before the adoption of IFRS 16, the Group did not identify any finance leases. For an operating lease, the leased property was not capitalized, and the lease payments were recognized as rent expense in profit or loss on a straight-line basis over the lease term. Any prepaid rent and accrued rent were recognized under prepayments and trade and other payables, respectively. Upon adoption of IFRS 16, the Group applied a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The standard provides specific transition requirements and practical expedients, which have been applied by the Group. The Group recognized right-of-use assets and lease liabilities for those leases previously classified as operating leases, except for short-term leases and leases of low-value assets. The right-of-use assets were recognized based on the amount equal to the lease liabilities, adjusted for any related prepaid and accrued lease payments previously recognized. Lease liabilities were recognized based on the present value of the remaining lease payments, discounted using the incremental borrowing rate at the date of initial application. The Group also applied the available practical expedients wherein it: · Applied the short-term leases exemptions to leases with a lease term that ends within 12 months at the date of initial application · Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application 2019 Operating lease commitments disclosed as of December 31, 2018 575,000 Short-term leases recognized on a straight-line basis as expense (17,765) Low-value leases recognized on a straight-line basis as expense (5,993) Adjustments as a result of a different treatment of extension and termination options 201,127 Total 752,369 Discount using the lessee’s incremental borrowing rate of at the date of initial application (21,697) Lease liability recognized as of January 1, 2019 730,672 thereof current lease liability 215,312 thereof non-current lease liabilities 515,360 The weighted average lessee’s incremental borrowing rate applied to the lease liabilities on January 1, 2019 was 1.8%. Most of the other amendments listed above did not have any impact on the amounts recognized in prior periods and are not expected to significantly affect the current or future periods. 2. New standards and interpretations not yet adopted Certain new accounting standards and interpretations have been published that are not mandatory for December 31, 2019 reporting periods and have not been early adopted by the Group. The Group’s assessment of the impact of these new standards and interpretations is set out below. · Amendments to References to Conceptual Framework in IFRS Standards, effective on January 1, 2020 · Definition of a Business (Amendments to IFRS 3), effective on January 1, 2020 · Definition of Material (Amendments to IAS 1 and IAS 8), effective on January 1, 2020 · IFRS 17 Insurance Contracts, effective on January 1, 2021 These new standards and interpretations are not expected to have a material impact on the Group’s consolidated financial statements. 3. Current and non-current distinction The Group presents current and non-current assets and current and non-current liabilities as separate classifications in its balance sheet. Current assets include assets that are sold, consumed or realized as part of the normal operating cycle. The operating cycle of an entity is the time between the acquisition of assets for processing and their realization in the form of cash or cash equivalents. The Groups operating cycle is assumed to be 12 months. Some current liabilities, such as trade payables and some accruals for employee and other operating costs, are part of the working capital used in the entity’s normal operating cycle. Such operating items are classified as current liabilities even if they are due to be settled more than 12 months after the reporting period. 4. Foreign currency transactions Transactions in a foreign currency are initially translated into the respective functional currency using the spot rate prevailing on the dates of the transaction. Monetary items which are not denominated in the functional currency are subsequently translated using the rate applicable at the end of the period. The resulting currency gains and losses are recognized directly in profit or loss. On consolidation, the assets and liabilities of operations in foreign currency are translated into euros at the rate of exchange prevailing at the reporting date and their statements of profit or loss are translated with monthly average exchange rates during the reporting period. The exchange differences arising on translation for consolidation are recognized in other comprehensive income (OCI). On disposal of a foreign operation, the component of OCI relating to that particular foreign operation is reclassified to profit or loss. OCI is disclosed as ‘other components of equity’ in Consolidated Statements of Financial Position. 5. Notes to the cash flow statement The cash flow statement has been prepared using the indirect method for cash flows from operating activities. The cash disclosed in the cash flow statement is comprised of cash and cash equivalents. Cash comprises cash on hand and demand deposits. Cash equivalents are short-term bank deposits and money market investment funds and are not subject to a significant risk of changes in value with an original maturity of three month or less. Interest paid and received is included in the cash from operating activities. 6. Research and development Research and development expenses comprise third party services, wages and salaries, cost of materials, intellectual property related expenses, depreciation and amortization of relevant equipment and intangibles as well as overhead. Research and development expenses mainly consist of costs for clinical trials and manufacturing of our clinical drug product, additionally costs are incurred by pre-clinical activities as well as basic research activities. Development expenses must be capitalized if the criteria of IAS 38 are met. In the periods presented, no development expenses were capitalized because management does not believe all the recognition criteria of IAS 38 had been met. This assessment is due to the general uncertainties in drug development and the unpredictability of regulatory requirements. As research expenditure and development expenditure does not meet the recognition criteria they are treated as an expense when incurred. 7. Employee benefits (i) Short-term employee benefits Liabilities for wages and salaries and cash bonuses are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet. A liability is recognized, if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably. (ii) Share-based payment transactions The grant-date fair value of equity-settled share-based payment arrangements granted to employees is generally recognized as an expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognized is based on the number of awards that meet the related service and non- market performance conditions at the vesting date. For share-based payment awards with immediate vesting, the grant-date fair value of the share-based payment is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes. 8. Government grants The Group received government grants in 2018 and prior years on certain investments in non-current assets and the Group still receives grant funds on specified research and development activities. Income from government grants is recognized under ‘other income’ in the consolidated statement of comprehensive loss. Income from the government grants is recognized at fair value where there is a reasonable assurance that the grant will be received and the Group will comply with all attached terms and conditions. In prior years grants were collected together with investments in non-current assets, the income was deferred on a straight-line basis over the useful lives of the respective assets. Contributions supporting certain costs of research and development are recognized as income when respective reimbursable costs also are incurred. 9. Lease arrangements Set forth below are the new accounting policies of the Group upon adoption of IFRS 16, which have been applied from the date of initial application: Right-of-use assets The Group recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any re-measurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognized right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term. Right-of-use assets are subject to impairment. Lease liabilities At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease term reflects the Group exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognized as expense in the period on which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is re-measured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset. Short-term leases and leases of low-value assets The Group applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered of low value. Lease payments on short-term leases and leases of low-value assets are recognized as expense on a straight-line basis over the lease term. Significant judgement in determining the lease term of contracts with renewal options The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. Some of the Group’s lease arrangements provide it the option to extend or renew the lease term. The Group applies judgement in evaluating whether it is reasonably certain to exercise the option to renew. In doing so, management considers all relevant factors that create an economic incentive for it to exercise the renewal. After the commencement date, the Group reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise the option to renew. 10. Interest income Interest income is derived from interest-bearing financial assets, including cash equivalents. Interest income from financial assets at fair value through profit and loss is included in the net fair value gains/(losses) on these assets. Interest income on cash and cash equivalents, financial assets at amortized cost calculated using the effective interest rate method is recognized in the statement of profit or loss as part of finance income. 11. Intangible assets Intangible assets mainly comprise purchased IT software. Intangible assets are initially measured at acquisition cost, including any directly attributable costs of preparing the asset for its intended use less accumulated amortization. Amortization begins when an asset |
Other information (Policies)
Other information (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies And Valuation Methods Policies Abstract | |
New and amended standards adopted by the Group | The Group has applied the following standards and amendments for the first time for its annual reporting period commencing January 1, 2019. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective. Most of the new standards and amendments listed below did not have any impact on the amounts recognized in prior periods and are not expected to significantly affect the current or future periods, except for IFRS 16 Leases: · IFRS 16 Leases · IFRIC 23 Uncertainty over Tax Treatments. · Prepayment Features with Negative Compensation (Amendments to IFRS 9). · Long-term Interests in Associates and Joint Ventures (Amendments to IAS 28). · Plan Amendment, Curtailment or Settlement (Amendments to IAS 19). · Annual Improvements to IFRS Standards 2015–2017 Cycle – various standards. The Group applies IFRS 16 Leases for the first time in its financial statements. The Group has lease contracts for various items of property, vehicles and other equipment. Before the adoption of IFRS 16, the Group classified each of its leases (as lessee) at the inception date as either a finance lease or an operating lease. A lease was classified as a finance lease if it transferred substantially all of the risks and rewards incidental to ownership of the leased asset to the Group; otherwise it was classified as an operating lease. Before the adoption of IFRS 16, the Group did not identify any finance leases. For an operating lease, the leased property was not capitalized, and the lease payments were recognized as rent expense in profit or loss on a straight-line basis over the lease term. Any prepaid rent and accrued rent were recognized under prepayments and trade and other payables, respectively. Upon adoption of IFRS 16, the Group applied a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The standard provides specific transition requirements and practical expedients, which have been applied by the Group. The Group recognized right-of-use assets and lease liabilities for those leases previously classified as operating leases, except for short-term leases and leases of low-value assets. The right-of-use assets were recognized based on the amount equal to the lease liabilities, adjusted for any related prepaid and accrued lease payments previously recognized. Lease liabilities were recognized based on the present value of the remaining lease payments, discounted using the incremental borrowing rate at the date of initial application. The Group also applied the available practical expedients wherein it: · Applied the short-term leases exemptions to leases with a lease term that ends within 12 months at the date of initial application · Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application 2019 Operating lease commitments disclosed as of December 31, 2018 575,000 Short-term leases recognized on a straight-line basis as expense (17,765) Low-value leases recognized on a straight-line basis as expense (5,993) Adjustments as a result of a different treatment of extension and termination options 201,127 Total 752,369 Discount using the lessee’s incremental borrowing rate of at the date of initial application (21,697) Lease liability recognized as of January 1, 2019 730,672 thereof current lease liability 215,312 thereof non-current lease liabilities 515,360 The weighted average lessee’s incremental borrowing rate applied to the lease liabilities on January 1, 2019 was 1.8%. Most of the other amendments listed above did not have any impact on the amounts recognized in prior periods and are not expected to significantly affect the current or future periods. |
New standards and interpretations not yet adopted | Certain new accounting standards and interpretations have been published that are not mandatory for December 31, 2019 reporting periods and have not been early adopted by the Group. The Group’s assessment of the impact of these new standards and interpretations is set out below. · Amendments to References to Conceptual Framework in IFRS Standards, effective on January 1, 2020 · Definition of a Business (Amendments to IFRS 3), effective on January 1, 2020 · Definition of Material (Amendments to IAS 1 and IAS 8), effective on January 1, 2020 · IFRS 17 Insurance Contracts, effective on January 1, 2021 These new standards and interpretations are not expected to have a material impact on the Group’s consolidated financial statements. |
Current and non-current distinction | The Group presents current and non-current assets and current and non-current liabilities as separate classifications in its balance sheet. Current assets include assets that are sold, consumed or realized as part of the normal operating cycle. The operating cycle of an entity is the time between the acquisition of assets for processing and their realization in the form of cash or cash equivalents. The Groups operating cycle is assumed to be 12 months. Some current liabilities, such as trade payables and some accruals for employee and other operating costs, are part of the working capital used in the entity’s normal operating cycle. Such operating items are classified as current liabilities even if they are due to be settled more than 12 months after the reporting period. |
Foreign currency translation | Transactions in a foreign currency are initially translated into the respective functional currency using the spot rate prevailing on the dates of the transaction. Monetary items which are not denominated in the functional currency are subsequently translated using the rate applicable at the end of the period. The resulting currency gains and losses are recognized directly in profit or loss. On consolidation, the assets and liabilities of operations in foreign currency are translated into euros at the rate of exchange prevailing at the reporting date and their statements of profit or loss are translated with monthly average exchange rates during the reporting period. The exchange differences arising on translation for consolidation are recognized in other comprehensive income (OCI). On disposal of a foreign operation, the component of OCI relating to that particular foreign operation is reclassified to profit or loss. OCI is disclosed as ‘other components of equity’ in Consolidated Statements of Financial Position. |
Notes to the cash flow statement | The cash flow statement has been prepared using the indirect method for cash flows from operating activities. The cash disclosed in the cash flow statement is comprised of cash and cash equivalents. Cash comprises cash on hand and demand deposits. Cash equivalents are short-term bank deposits and money market investment funds and are not subject to a significant risk of changes in value with an original maturity of three month or less. Interest paid and received is included in the cash from operating activities. |
Research and development | Research and development expenses comprise third party services, wages and salaries, cost of materials, intellectual property related expenses, depreciation and amortization of relevant equipment and intangibles as well as overhead. Research and development expenses mainly consist of costs for clinical trials and manufacturing of our clinical drug product, additionally costs are incurred by pre-clinical activities as well as basic research activities. Development expenses must be capitalized if the criteria of IAS 38 are met. In the periods presented, no development expenses were capitalized because management does not believe all the recognition criteria of IAS 38 had been met. This assessment is due to the general uncertainties in drug development and the unpredictability of regulatory requirements. As research expenditure and development expenditure does not meet the recognition criteria they are treated as an expense when incurred. |
Employee benefits | (i) Short-term employee benefits Liabilities for wages and salaries and cash bonuses are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet. A liability is recognized, if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably. (ii) Share-based payment transactions The grant-date fair value of equity-settled share-based payment arrangements granted to employees is generally recognized as an expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognized is based on the number of awards that meet the related service and non- market performance conditions at the vesting date. For share-based payment awards with immediate vesting, the grant-date fair value of the share-based payment is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes. |
Government grants | The Group received government grants in 2018 and prior years on certain investments in non-current assets and the Group still receives grant funds on specified research and development activities. Income from government grants is recognized under ‘other income’ in the consolidated statement of comprehensive loss. Income from the government grants is recognized at fair value where there is a reasonable assurance that the grant will be received and the Group will comply with all attached terms and conditions. In prior years grants were collected together with investments in non-current assets, the income was deferred on a straight-line basis over the useful lives of the respective assets. Contributions supporting certain costs of research and development are recognized as income when respective reimbursable costs also are incurred. |
Lease agreements | Set forth below are the new accounting policies of the Group upon adoption of IFRS 16, which have been applied from the date of initial application: Right-of-use assets The Group recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any re-measurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognized right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term. Right-of-use assets are subject to impairment. Lease liabilities At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease term reflects the Group exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognized as expense in the period on which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is re-measured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset. Short-term leases and leases of low-value assets The Group applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered of low value. Lease payments on short-term leases and leases of low-value assets are recognized as expense on a straight-line basis over the lease term. Significant judgement in determining the lease term of contracts with renewal options The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. Some of the Group’s lease arrangements provide it the option to extend or renew the lease term. The Group applies judgement in evaluating whether it is reasonably certain to exercise the option to renew. In doing so, management considers all relevant factors that create an economic incentive for it to exercise the renewal. After the commencement date, the Group reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise the option to renew. |
Interest income | Interest income is derived from interest-bearing financial assets, including cash equivalents. Interest income from financial assets at fair value through profit and loss is included in the net fair value gains/(losses) on these assets. Interest income on cash and cash equivalents, financial assets at amortized cost calculated using the effective interest rate method is recognized in the statement of profit or loss as part of finance income. |
Intangible assets | Intangible assets mainly comprise purchased IT software. Intangible assets are initially measured at acquisition cost, including any directly attributable costs of preparing the asset for its intended use less accumulated amortization. Amortization begins when an asset is available for use and amortization is calculated using the straight-line method to allocate cost over the estimated useful lives. Software is amortized over three years. The useful lives of intangible assets are reviewed at each reporting date. The effect of any adjustment to useful lives is recognized prospectively as a change of accounting estimate. The Group only owns intangible assets with a definite useful life. |
Laboratory and office equipment | Laboratory and office equipment are stated at historical cost less accumulated depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. All repairs and maintenance are charged to profit or loss during the financial period in which they are incurred, because they do not constitute a separate asset. Depreciation on leasehold improvements and equipment is calculated using the straight-line method to allocate their cost over their estimated useful lives, as follows: · Laboratory equipment: three to 13 years · Office equipment: one to five years The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized within ‘other income and expenses (net)’ in the consolidated statement of other comprehensive loss. |
Financial assets and liabilities (financial instruments) | A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. The Group’s financial liabilities comprise trade and other payables. The Group initially recognizes non- derivative financial liabilities on the date that they are originated and measures them at amortized cost using the effective interest rate method. The Group derecognizes a financial liability when its contractual obligations are discharged, cancelled or expire. |
Income taxes | Income taxes comprise current and deferred taxes. Current and deferred taxes are recognized in profit or loss except to the extent that they relate to items recognized directly in equity or in other comprehensive loss. Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for temporary differences associated with assets and liabilities if the transaction which led to their initial recognition is a transaction that is not a business combination and that affects neither accounting nor tax profit or loss. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are presented net if there is a legally enforceable right to offset. A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. Unrecognized deferred tax assets are reassessed at each reporting date and recognized to the extent that it has become probable that future taxable profits will be available against which they can be used. Due to its stage of development, the Company does not report net deferred tax assets on its consolidated statement of financial position. |
Fair value measurement | Several the Group’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. When measuring the fair value of an asset or a liability, the Group uses observable market data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows: · Level 1, quoted prices in active markets for identical assets or liabilities. · Level 2, inputs other than quoted prices included within Level 1 that are observable for the instrument, either directly (as prices) or indirectly (derived from prices). · Level 3, inputs for instruments that are not based on observable market data (unobservable inputs). If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Group recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred. Further information about the assumptions made in measuring fair values of share-based payments is included in “1. Equity-settled share-based payment arrangements”. The carrying amount of all financial instruments approximates their fair value. |
Information on how numbers we_2
Information on how numbers were calculated (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Information On How Numbers Were Calculated | |
Research and development expenses | Research and development expenses 2019 2018 2017 (in €) Third-party services 36,783,223 15,909,366 8,856,431 manufacturing of clinical material 13,479,235 4,828,534 5,558,719 clinical, pre-clinical 23,303,988 11,080,832 3,297,712 Personnel expenses 6,231,812 8,037,082 4,680,877 share-based compensation expense 2,580,983 5,256,194 3,070,707 Legal and consulting fees 668,676 421,041 643,074 Other expenses 898,425 661,065 234,129 Total 44,582,136 25,028,554 14,414,511 |
General and administrative expenses | General and administrative expenses 2019 2018 2017 (in €) Personnel expenses 7,534,073 9,146,955 2,948,229 share-based compensation expense 4,251,227 6,828,457 1,479,398 Legal and consulting fees 2,199,640 2,020,447 1,478,210 Other expenses 2,767,335 1,619,467 712,059 Total 12,501,048 12,786,869 5,138,498 |
Employee benefits | Employee benefits 2019 2018 2017 (in €) Wages and salaries 5,974,807 4,501,840 2,896,929 Social Security contributions (employer's share) 562,255 350,024 182,189 Equity-settled share-based payments 6,832,210 12,084,651 4,550,105 Other 396,613 247,522 — Total 13,765,885 17,184,037 7,629,223 |
Net financial result | Finance income 2019 2018 2017 (in €) Foreign exchange income 3,379,644 8,249,853 — Interest income 2,840,676 2,182,842 130,032 Total 6,220,320 10,432,695 130,032 Finance costs Foreign exchange expense 2,684,699 2,623,782 2,358,631 Other 22,265 107,182 2,563,904 Total 2,706,964 2,730,964 4,922,535 Net Financial Result 3,513,356 7,701,731 (4,792,503) |
Tax loss carryforwards | December 31, 2019 December 31, 2018 (in €) InflaRx N.V. 75,767,524 33,571,438 InflaRx GmbH 34,786,686 34,787,686 InflaRx Pharmaceutical Inc. 3,816,023 1,651,579 |
Income taxes | InflaRx in Germany 2019 2018 2017 (in €) Loss before taxes (53,254,817) (29,814,634) (24,237,748) Tax rate 29.7% 29.2% 31.2% Tax benefits at tax rate 15,815,083 8,715,116 7,559,754 Tax losses for which no deferred tax asset was recognized (15,815,083) (8,715,116) (7,559,754) Income taxes — — — The applicable tax rate on income in the U.S. is composed of 21% federal tax and 6% state tax: InflaRx in the U.S. 2019 2018 2017 (in U.S. dollars) Loss before taxes (2,177,602) (1,891,058) — Tax rate 27% 27% — Tax benefits at tax rate 587,953 510,586 — Tax losses for which no deferred tax asset was recognized (587,953) (510,586) — Income taxes — — — |
Property, plant, and equipment | Buildings, Office properties Laboratory, office and other equipment Advance payments Total Cost (in €) At January 1, 2018 — 394,609 — 394,609 Additions — 504,423 86,068 590,491 Disposals — 1,544 — 1,544 Reclassification — 86,068 (86,068) — Exchange differences — 8,534 — 8,534 At December 31, 2018 — 995,179 — 995,179 Right-of-use assets at January 1, 2019, see note 1. (e) 695,614 35,058 — 730,672 Additions 636,754 259,647 54,338 950,740 Disposals (266,057) (142,400) — (408,457) Reclassification — 54,408 (54,408) — Exchange differences 1,512 6,639 70 8,221 At December 31, 2019 1,067,823 1,208,531 — 2,276,355 Depreciation At January 1, 2018 — (221,970) — (221,970) Depreciation charge for the year — (148,375) — (148,375) Exchange differences — (166) — (166) At December 31, 2018 — (370,510) — (370,510) Depreciation charge for the year (283,350) (273,458) — (556,808) Disposals 38,008 26,235 — 64,243 Exchange differences 216 (198) — 18 At December 31, 2019 (245,126) (617,932) — (863,058) Net book value — — — — At December 31, 2019 822,697 590,600 — 1,413,297 At December 31, 2018 — 624,668 — 624,668 |
Intangible assets | Patents and licenses with definite useful life Construction in progress Total Cost (in €) At January 1, 2018 148,749 — 148,749 Additions 97,620 — 97,620 Disposals (17) — (17) Reclassification — 109,852 109,852 Exchange differences — — — At December 31, 2018 246,351 109,852 356,204 Additions 84,449 251,493 335,942 Disposals — — — Reclassification 353,155 (353,155) — Exchange differences (64) — (64) At December 31, 2019 683,891 8,190 692,081 Amortization At January 1, 2018 (108,083) — (108,083) Depreciation charge for the year (25,255) — (25,255) Exchange differences — — — At December 31, 2018 (133,337) — (133,337) Depreciation charge for the year (106,358) — (106,358) Disposals — — — Exchange differences 14 — 14 At December 31, 2019 (239,681) — (239,681) Net book value — — — At December 31, 2019 444,210 8,190 452,400 At December 31, 2018 113,014 109,852 222,866 |
Leases | Right-of-use assets Foreign exchange Property Cars difference Total Lease liabilities (in €) As of January 1, 2019 695,614 35,058 — 730,672 730,672 Additions 636,754 — 1,512 638,266 636,754 Depreciation charge for the year (245,342) (20,831) 216 (265,957) — Derecognition (266,057) — — (266,057) (228,547) Interest expense — — — — (12,765) Payments (incl. interest and foreign exchange difference) — — — — (281,535) As of December 31, 2019 820,969 14,227 1,728 836,924 844,579 |
Maturity analysis for capitalized leases | Maturity analysis for capitalized leases Contractual minimum lease obligations Effect of discounting Lease liabilities (in €) Within one year 354,878 7,175 347,703 After one year but not more than five years 500,062 3,185 496,877 More than five years — — — Total 854,940 10,361 844,579 |
Maturity analsis for all lease obligations | Maturity analysis for all lease obligations Total Low value leases Short-term leases Capitalized leases (in €) Within one year 371,105 5,387 10,841 354,878 After one year but not more than five years 532,845 12,779 20,005 500,062 More than five years — — — — Total 903,951 18,166 30,845 854,940 |
Amounts recognized in profit or loss | December 31, 2019* December 31, 2018* (in €) Depreciation expense of right-of-use assets 265,957 — Interest expense on lease liabilities 12,765 — Rental expense from leases 70,451 213,200 short-term leases (included in administrative expenses) 65,348 — leases of low-value assets (included in administrative expenses) 5,103 — Total amounts recognized in profit or loss 349,173 213,200 * in 2019 leases under IFRS 16, in 2018 operating leases under IAS 17 |
Other non-financial assets | Other non-financial assets December 31, 2019 December 31, 2018 (in €) Prepaid expense 1,920,153 1,032,676 Pre-payments 698,891 14,607 Other 1,334,056 541,419 Total 3,953,100 1,588,702 |
Financial assets and financial liabilities | Financial assets and financial liabilities December 31, 2019 December 31, 2018 (in €) Financial assets at amortized cost Non-current financial assets 272,614 207,444 Current financial assets 82,353,867 101,184,240 Financial liabilities at amortized cost Trade and other payables 12,413,662 6,657,312 Interest bearing loans and borrowings Non-current lease liabilities 330,745 — Current lease liabilities 513,834 — |
Cash and cash equivalents | Cash and cash equivalents December 31, 2019 December 31, 2018 (in €) Short-term deposits Deposits held in U.S. dollars (3 months original maturity and less) 27,803,153 32,918,604 Total 27,803,153 32,918,604 Cash at banks Cash held in euro 1,211,478 21,719,699 Cash held in U.S. dollars 4,116,649 747,937 Total 5,328,127 22,467,636 Total cash and cash equivalents 33,131,280 55,386,240 |
Risk (Tables)
Risk (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Risk Tables Abstract | |
Financial risk management | Exposure Measurement Risk Management Market risk Future development costs; Recognized financial assets and liabilities not denominated in euro Forecasted cash flows Sensitivity analysis Achievement of a natural hedge in the future Credit risk Cash and cash equivalents, debt investments Credit rating Diversification of bank deposits, Investment guidelines for debt investments Liquidity R&D and G&A cost and trade payables Rolling cash flow forecast Availability of funds through financing rounds or public offerings |
Assets exposed to risk | Cash, cash equivalents and financial assets that belong to InflaRx GmbH December 31, 2019 (in €) Current financial assets (securities and accrued interest) 32,947,491 Cash and cash equivalents 4,123,532 Total assets exposed to the risk 37,071,023 Conversion rate EUR/USD at reporting date 1/1.1234 |
Sensitivity analysis | Sensitivity analysis: Conversion rate Profit/(loss) carrying amount (in €) Euro weakens by 1% against U.S. dollars 1.1346 (367,040) 36,703,983 Euro strengths by 1% against U.S. dollars 1.1122 374,455 37,445,478 Euro weakens by 5% against U.S. dollars 1.1796 (1,765,287) 35,305,736 Euro strengths by 5% against U.S. dollars 1.0672 1,951,106 39,022,129 Euro weakens by 10% against U.S. dollars 1.2357 (3,370,093) 33,700,930 Euro strengths by 10% against U.S. dollars 1.0111 4,119,003 41,190,026 |
Liquidity risk | Liquidity December 31, 2019 December 31, 2018 (in €) Short-term deposits 27,803,153 32,918,604 Cash at banks 5,328,127 22,467,636 Marketable Securities (current) 81,895,377 100,868,129 Other (non-current portion) 272,614 207,444 Other (current) 458,491 316,112 Total funds available 115,757,762 156,777,925 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments | |
Operating lease obligations | December 31, 2019 December 31, 2018 (in €) Commitments for minimum lease payments in relation to non-cancellable leases Within one year 371,105 282,711 After one year but not more than five years 532,845 292,300 More than five years — — Total 903,951 575,011 |
Other commitments | December 31, 2019 December 31, 2018 (in €) Commitments for minimum payments in relation to non-cancellable operating contracts or services: Within one year 10,602,651 19,623,790 After one year but not more than five years 13,844,857 9,683,700 More than five years — — Total 24,447,508 29,307,490 |
Other information (Tables)
Other information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Information Tables Abstract | |
Subsidiaries | Name Place of business/ country of incorporation Functional currency Ownership interest held by the Group 2019 2018 Principal activities InflaRx GmbH Germany EUR 100% 100% Principal operating subsidiary, biopharmaceutical company InflaRx Pharmaceutical Inc. U.S. USD 100% 100% Subsidiary for basic research |
Compensation of executive management | Board Compensation 2019 2018 2017 (in €) Executive Management Short-term employee benefits 2,793,529 2,524,202 1,986,973 Share-based payments 5,218,324 9,801,454 3,187,438 Total 8,011,853 12,325,656 5,174,411 Non-executive Board of Directors Short-term employee benefits 269,031 238,180 80,735 Share-based payments 710,611 1,085,917 42,860 Total 979,642 1,324,098 123,596 Total Compensation 8,991,495 13,649,754 5,298,007 |
Share-based payments | 2019 number 2019 WAEP 2018 number 2018 WAEP Outstanding at January 1 289.309 €0.01 533.820 €0.01 Exercised during the year (1) 140.876 €0.01 244.511 €0.01 Outstanding at December 31 148.433 €0.01 289.309 €0.01 Exercisable at December 31 148.433 €0.01 289.309 €0.01 (1) The weighted average share price at the date of exercise of these options was $3.02/€2.70* (2018: $33,82/ €28,62*). * average conversion rates used for one $: 2019 $0.8932, 2018 $0.8464 2019 number 2019 WAEP 2018 number 2018 WAEP Outstanding at January 1 1.181.484 €7,81 1.239.252 €7,81 Exercised during the year (1) — — 57.768 €7,81 Outstanding at December 31 1.181.484 $3,35/€2.98* 1.181.484 €7,81 Exercisable at December 31 1.181.484 $3,35/€2.98* 1.181.484 €7,81 (1) The weighted average share price at the date of exercise in 2018 for these options was $32,82/€27.78*. * conversion rates used for one €: December 31, 2019 $0.8902, average rate 2018 $0.8464 2019 number 2019 WAEP 2018 number 2018 WAEP Outstanding at January 1 2.051.009 $3,61/€3.16* 1.869.192 $3,35/€2.79* Granted during the year 242.450 $3,25/€2.91* 208.073 $5,96/€5.05* Forfeited during the year 112.354 $6,17/€5.51* 26.256 $3,35/€2.84* Outstanding at December 31 2.181.105 $3,44/€3.06* 2.051.009 $3,61/€3.16* Exercisable at December 31 1.319.548 $3,52/€3.13* 626.933 $3,35/€2.93* * conversion rates used for one €: December 31, 2019 $0.8902, average rate 2019 $0.8932, January 1, 2019/December 31, 2018 $0.8734, average rate 2018 $0.8464 |
Fair value of stock options granted | Share options granted Number Per option FX rate as of grant date Per option Share price at grant date / Exercise price Expected volatility Expected life (midpoint based) Risk-free rate (interpolated, U.S. sovereign strips curve) 2018 February 7* 28,002 $13.79 0.82 €11.24 $22.75 0.73 4.9 2.60% May 30 20,000 $22.37 0.86 €19.23 $37.85 0.73 4.6 2.70% July 20 54,000 $19.80 0.86 €16.96 $32.40 0.73 4.9 2.80% Sept. 21* 18,450 $20.17 0.85 €17.15 $33.06 0.73 4.9 3.00% Nov. 20* 12,621 $13.39 0.88 €11.75 $26.02 0.65 4.0 2.93% November 20/ Jan. 1, 2019* 75,000 $14.45 0.88 €12.69 $26.02 0.65 4.8 3,00% 208,073 2019 January 1 — $14.45 0.88 €12.69 $26.02 0.65 4.8 3,00% February 4 18,450 $18.17 0.87 €15.87 $32.63 0.65 4.9 2,60% May, 14 36,000 $22.54 0.89 €20.08 $41.39 0.65 4.7 2.30% Repricing, July 3 — $0.46-$1.08 0.89 €0.40-€0.96 $3.35 1.35 2.3-4.6 2.30% October 24 50,000 $1.96 0.90 €1.76 $2.28 1.35 4.7 1,65% December 16 38,000 $3.07 0.90 €2.75 $3.57 1.35 4.7 1,79% December 16* 100,000 $3.07 0.90 €2.75 $3.57 1.35 4.7 1,79% 242,450 Expected dividends are nil for all share options listed above. * Options granted to the executive management or board of directors |
Recognized compensation expenses per share option plan | 2022 2021 2020 2019 2018 2017 (in million €) 2016 Plan — — — — — 4.0 2017 Long-Term Incentive plan 0.0 0.3 2.1 5.2 12.1 0.6 Repricing consummated on July 3, 2019 2016 Plan — — — 0.5 — — 2017 Long-Term Incentive plan 0.0 0.0 0.3 1.1 — — Total compensation expense 0.0 0.3 2.4 6.8 12.1 4.6 |
Right of use assets and lease liabilities | 2019 Operating lease commitments disclosed as of December 31, 2018 575,000 Short-term leases recognized on a straight-line basis as expense (17,765) Low-value leases recognized on a straight-line basis as expense (5,993) Adjustments as a result of a different treatment of extension and termination options 201,127 Total 752,369 Discount using the lessee’s incremental borrowing rate of at the date of initial application (21,697) Lease liability recognized as of January 1, 2019 730,672 thereof current lease liability 215,312 thereof non-current lease liabilities 515,360 |
Information on how numbers we_3
Information on how numbers were calculated (Details) - EUR (€) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SummaryOfInformationOnHowNumbersWereCalculatedLineItems [Line Items] | |||
Research and development expenses | € 44,582,136 | € 25,028,554 | € 14,414,628 |
Third-party services | |||
SummaryOfInformationOnHowNumbersWereCalculatedLineItems [Line Items] | |||
Research and development expenses | 36,783,223 | 15,909,366 | 8,856,431 |
Manufacturing of clinical material | |||
SummaryOfInformationOnHowNumbersWereCalculatedLineItems [Line Items] | |||
Research and development expenses | 13,479,235 | 4,828,534 | 5,558,719 |
Clinical, pre-clinical | |||
SummaryOfInformationOnHowNumbersWereCalculatedLineItems [Line Items] | |||
Research and development expenses | 23,303,988 | 11,080,832 | 3,297,712 |
Personnel expenses | |||
SummaryOfInformationOnHowNumbersWereCalculatedLineItems [Line Items] | |||
Research and development expenses | 6,231,812 | 8,037,082 | 4,680,877 |
Share-based Compensation | |||
SummaryOfInformationOnHowNumbersWereCalculatedLineItems [Line Items] | |||
Research and development expenses | 2,580,983 | 5,256,194 | 3,070,707 |
Legal and consulting fees | |||
SummaryOfInformationOnHowNumbersWereCalculatedLineItems [Line Items] | |||
Research and development expenses | 668,676 | 421,041 | 643,074 |
Other expenses | |||
SummaryOfInformationOnHowNumbersWereCalculatedLineItems [Line Items] | |||
Research and development expenses | € 898,425 | € 661,065 | € 234,129 |
Information on how numbers we_4
Information on how numbers were calculated (Details 1) - EUR (€) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SummaryOfInformationOnHowNumbersWereCalculatedLineItems [Line Items] | |||
General and administrative expenses | € 12,501,048 | € 12,786,869 | € 5,138,498 |
Personnel expenses | |||
SummaryOfInformationOnHowNumbersWereCalculatedLineItems [Line Items] | |||
General and administrative expenses | 7,534,073 | 9,146,955 | 2,948,229 |
Share-based Compensation | |||
SummaryOfInformationOnHowNumbersWereCalculatedLineItems [Line Items] | |||
General and administrative expenses | 4,251,227 | 6,828,457 | 1,479,398 |
Legal and consulting fees | |||
SummaryOfInformationOnHowNumbersWereCalculatedLineItems [Line Items] | |||
General and administrative expenses | 2,199,640 | 2,020,447 | 1,478,210 |
Other expenses | |||
SummaryOfInformationOnHowNumbersWereCalculatedLineItems [Line Items] | |||
General and administrative expenses | € 2,767,335 | € 1,619,467 | € 712,059 |
Information on how numbers we_5
Information on how numbers were calculated (Details 2) - EUR (€) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SummaryOfInformationOnHowNumbersWereCalculatedLineItems [Line Items] | |||
Employee benefits | € 13,765,885 | € 17,184,037 | € 7,629,223 |
Wages and salaries | |||
SummaryOfInformationOnHowNumbersWereCalculatedLineItems [Line Items] | |||
Employee benefits | 5,974,807 | 4,501,840 | 2,896,929 |
Social security | |||
SummaryOfInformationOnHowNumbersWereCalculatedLineItems [Line Items] | |||
Employee benefits | 562,255 | 350,024 | 182,189 |
Share-based Compensation | |||
SummaryOfInformationOnHowNumbersWereCalculatedLineItems [Line Items] | |||
Employee benefits | 6,832,210 | 12,084,651 | 4,550,105 |
Other expenses | |||
SummaryOfInformationOnHowNumbersWereCalculatedLineItems [Line Items] | |||
Employee benefits | € 396,613 | € 247,522 | € 0 |
Information on how numbers we_6
Information on how numbers were calculated (Details 3) - EUR (€) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SummaryOfInformationOnHowNumbersWereCalculatedLineItems [Line Items] | |||
Finance income | € 6,220,320 | € 10,432,695 | € 130,032 |
Finance costs | 2,706,964 | 2,730,964 | 4,922,535 |
Net financial result | 3,513,355 | 7,701,731 | (4,792,503) |
Foreign exchange | |||
SummaryOfInformationOnHowNumbersWereCalculatedLineItems [Line Items] | |||
Finance income | 3,379,644 | 8,249,853 | 0 |
Finance costs | 2,684,699 | 2,623,782 | 2,358,631 |
Interest income | |||
SummaryOfInformationOnHowNumbersWereCalculatedLineItems [Line Items] | |||
Finance income | 2,840,676 | 2,182,842 | 130,032 |
Other income | |||
SummaryOfInformationOnHowNumbersWereCalculatedLineItems [Line Items] | |||
Finance income | 0 | 0 | 0 |
Finance costs | € 22,265 | € 107,182 | € 2,563,904 |
Information on how numbers we_7
Information on how numbers were calculated (Details 4) - EUR (€) | Dec. 31, 2019 | Dec. 31, 2018 |
InflaRx N.V. | ||
SummaryOfInformationOnHowNumbersWereCalculatedLineItems [Line Items] | ||
Tax carry forwards | € 75,767,524 | € 33,571,438 |
InflaRx GmbH | ||
SummaryOfInformationOnHowNumbersWereCalculatedLineItems [Line Items] | ||
Tax carry forwards | 34,786,686 | 34,787,686 |
InflaRx Pharmaceutical Inc. | ||
SummaryOfInformationOnHowNumbersWereCalculatedLineItems [Line Items] | ||
Tax carry forwards | € 3,816,023 | € 1,651,579 |
Information on how numbers we_8
Information on how numbers were calculated (Details 5) | 12 Months Ended | |||||
Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | |
Statement Line Items [Line Items] | ||||||
Loss before taxes | € (53,254,817) | € (29,814,634) | € (24,237,748) | |||
Germany | ||||||
Statement Line Items [Line Items] | ||||||
Loss before taxes | € (53,254,817) | € (29,814,634) | € (24,237,748) | |||
Tax rate | 29.70% | 29.70% | 29.20% | 29.20% | 31.20% | 31.20% |
Tax benefits at tax rate | € 15,815,083 | € 8,715,116 | € 7,559,754 | |||
Tax losses for which no deferred income tax asset was recognized | (15,815,083) | (8,715,116) | (7,559,754) | |||
Income taxes | € 0 | € 0 | € 0 | |||
U.S. (in USD) | ||||||
Statement Line Items [Line Items] | ||||||
Loss before taxes | $ | $ (2,177,602) | $ (1,891,058) | $ 0 | |||
Tax rate | 27.00% | 27.00% | 27.00% | 27.00% | 0.00% | 0.00% |
Tax benefits at tax rate | $ | $ 587,953 | $ 510,586 | $ 0 | |||
Tax losses for which no deferred income tax asset was recognized | $ | (587,953) | (510,586) | 0 | |||
Income taxes | $ | $ 0 | $ 0 | $ 0 |
Information on how numbers we_9
Information on how numbers were calculated (Details 6) - EUR (€) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Line Items [Line Items] | ||
Net book value | € 1,413,297 | € 624,668 |
Cost | ||
Statement Line Items [Line Items] | ||
Balance, beginning | 995,179 | 394,609 |
Additions | 1,681,412 | 590,491 |
Disposals | (408,457) | 1,544 |
Reclassification | 0 | 0 |
Exchange differences | 8,221 | 8,534 |
Balance, ending | 2,276,355 | 995,179 |
Depreciation | ||
Statement Line Items [Line Items] | ||
Balance, beginning | (370,510) | (221,970) |
Depreciation charge for the year | (556,808) | (148,375) |
Disposals | 64,243 | |
Exchange differences | 18 | (166) |
Balance, ending | (863,058) | (370,510) |
Buildings, offices properties | ||
Statement Line Items [Line Items] | ||
Net book value | 822,697 | 0 |
Buildings, offices properties | Cost | ||
Statement Line Items [Line Items] | ||
Balance, beginning | 0 | 0 |
Additions | 1,332,368 | 0 |
Disposals | (266,057) | 0 |
Reclassification | 0 | 0 |
Exchange differences | 1,512 | 0 |
Balance, ending | 1,067,823 | 0 |
Buildings, offices properties | Depreciation | ||
Statement Line Items [Line Items] | ||
Balance, beginning | 0 | 0 |
Depreciation charge for the year | (283,350) | 0 |
Disposals | 38,008 | |
Exchange differences | 216 | 0 |
Balance, ending | (245,126) | 0 |
Laboratory, office and other equipment | ||
Statement Line Items [Line Items] | ||
Net book value | 590,600 | 624,668 |
Laboratory, office and other equipment | Cost | ||
Statement Line Items [Line Items] | ||
Balance, beginning | 995,179 | 394,609 |
Additions | 294,705 | 504,423 |
Disposals | (142,400) | 1,544 |
Reclassification | 54,408 | 86,068 |
Exchange differences | 6,639 | 8,534 |
Balance, ending | 1,208,531 | 995,179 |
Laboratory, office and other equipment | Depreciation | ||
Statement Line Items [Line Items] | ||
Balance, beginning | (370,510) | (221,970) |
Depreciation charge for the year | (273,458) | (148,375) |
Disposals | 26,235 | |
Exchange differences | (198) | (166) |
Balance, ending | (617,932) | (370,510) |
Advance payments | ||
Statement Line Items [Line Items] | ||
Net book value | 0 | 0 |
Advance payments | Cost | ||
Statement Line Items [Line Items] | ||
Balance, beginning | 0 | 0 |
Additions | 54,338 | 86,068 |
Disposals | 0 | 0 |
Reclassification | (54,408) | (86,068) |
Exchange differences | 70 | 0 |
Balance, ending | 0 | 0 |
Advance payments | Depreciation | ||
Statement Line Items [Line Items] | ||
Balance, beginning | 0 | 0 |
Depreciation charge for the year | 0 | 0 |
Disposals | 0 | |
Exchange differences | 0 | 0 |
Balance, ending | € 0 | € 0 |
Information on how numbers w_10
Information on how numbers were calculated (Details 7) - EUR (€) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Line Items [Line Items] | ||
Net book value | € 452,400 | € 222,866 |
Cost | ||
Statement Line Items [Line Items] | ||
Balance, beginning | 356,204 | 148,749 |
Additions | 335,942 | 97,620 |
Disposals | 0 | (17) |
Reclassifications | 0 | 109,852 |
Exchange differences | (64) | 0 |
Balance, ending | 692,081 | 356,204 |
Amortization | ||
Statement Line Items [Line Items] | ||
Balance, beginning | (133,337) | (108,083) |
Depreciation charge for the year | (106,358) | (25,255) |
Disposals | 0 | 0 |
Exchange differences | 14 | 0 |
Balance, ending | (239,681) | (133,337) |
Patents and licenses with definite useful life | ||
Statement Line Items [Line Items] | ||
Net book value | 444,210 | 113,014 |
Patents and licenses with definite useful life | Cost | ||
Statement Line Items [Line Items] | ||
Balance, beginning | 246,351 | 148,749 |
Additions | 84,449 | 97,620 |
Disposals | 0 | (17) |
Reclassifications | 353,155 | 0 |
Exchange differences | (64) | 0 |
Balance, ending | 683,891 | 246,351 |
Patents and licenses with definite useful life | Amortization | ||
Statement Line Items [Line Items] | ||
Balance, beginning | (133,337) | (108,083) |
Depreciation charge for the year | (106,358) | (25,255) |
Disposals | 0 | 0 |
Exchange differences | 14 | 0 |
Balance, ending | (239,681) | (133,337) |
Construction in progress | ||
Statement Line Items [Line Items] | ||
Net book value | 8,190 | 109,852 |
Construction in progress | Cost | ||
Statement Line Items [Line Items] | ||
Balance, beginning | 109,852 | 0 |
Additions | 251,493 | 0 |
Disposals | 0 | 0 |
Reclassifications | (353,155) | 109,852 |
Exchange differences | 0 | 0 |
Balance, ending | 8,190 | 109,852 |
Construction in progress | Amortization | ||
Statement Line Items [Line Items] | ||
Balance, beginning | 0 | 0 |
Depreciation charge for the year | 0 | 0 |
Disposals | 0 | 0 |
Exchange differences | 0 | 0 |
Balance, ending | € 0 | € 0 |
Information on how numbers w_11
Information on how numbers were calculated (Details 8) - EUR (€) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Line Items [Line Items] | ||
Balance, beginning | € 730,672 | |
Additions | 638,266 | |
Depreciation charge for the year | (265,957) | € 0 |
Derecognition | (266,057) | |
Interest expense | 0 | |
Payments (including interest and foreign exchange difference) | 0 | |
Balance, ending | 836,924 | 730,672 |
Lease liabilities | ||
Statement Line Items [Line Items] | ||
Balance, beginning | 730,672 | |
Additions | 636,754 | |
Depreciation charge for the year | 0 | |
Derecognition | (228,547) | |
Interest expense | (12,765) | |
Payments (including interest and foreign exchange difference) | (281,535) | |
Balance, ending | 844,579 | 730,672 |
Foreign exchange differences | ||
Statement Line Items [Line Items] | ||
Balance, beginning | 0 | |
Additions | 1,512 | |
Depreciation charge for the year | 216 | |
Derecognition | 0 | |
Interest expense | 0 | |
Payments (including interest and foreign exchange difference) | 0 | |
Balance, ending | 1,728 | 0 |
Right-of-use assets | Property | ||
Statement Line Items [Line Items] | ||
Balance, beginning | 695,614 | |
Additions | 636,754 | |
Depreciation charge for the year | (245,342) | |
Derecognition | (266,057) | |
Interest expense | 0 | |
Payments (including interest and foreign exchange difference) | 0 | |
Balance, ending | 820,969 | 695,614 |
Right-of-use assets | Cars | ||
Statement Line Items [Line Items] | ||
Balance, beginning | 35,058 | |
Additions | 0 | |
Depreciation charge for the year | (20,831) | |
Derecognition | 0 | |
Interest expense | 0 | |
Payments (including interest and foreign exchange difference) | 0 | |
Balance, ending | € 14,227 | € 35,058 |
Information on how numbers w_12
Information on how numbers were calculated (Details 9) | Dec. 31, 2019EUR (€) |
Capitalized leases | |
Contractual minimum lease obligations | € 854,940 |
Effect of discounting | 10,361 |
Lease liabilities | 844,579 |
Lease obligations | |
Total | 903,951 |
Low value leases | 18,166 |
Short-term leases | 30,845 |
Capitalized leases | 854,940 |
Not later than one year | |
Capitalized leases | |
Contractual minimum lease obligations | 354,878 |
Effect of discounting | 7,175 |
Lease liabilities | 347,703 |
Lease obligations | |
Total | 371,105 |
Low value leases | 5,387 |
Short-term leases | 10,841 |
Capitalized leases | 354,878 |
After one year but not more than five years | |
Capitalized leases | |
Contractual minimum lease obligations | 500,062 |
Effect of discounting | 3,185 |
Lease liabilities | 496,877 |
Lease obligations | |
Total | 532,845 |
Low value leases | 12,779 |
Short-term leases | 20,005 |
Capitalized leases | 500,062 |
More than five years | |
Capitalized leases | |
Contractual minimum lease obligations | 0 |
Effect of discounting | 0 |
Lease liabilities | 0 |
Lease obligations | |
Total | 0 |
Low value leases | 0 |
Short-term leases | 0 |
Capitalized leases | € 0 |
Information on how numbers w_13
Information on how numbers were calculated (Details 10) - EUR (€) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Information On How Numbers Were Calculated Details 6Abstract | ||
Depreciation expense of right-of-use-assets | € 265,957 | € 0 |
Interest expense on lease liabilities | 12,765 | 0 |
Rental expense from leases | 70,451 | 213,200 |
Short-term leases (included in administrative expenses) | 65,348 | 0 |
Lease of low value assets (included in administrative expenses) | 5,103 | 0 |
Total amounts recognized in profit or loss | € 349,173 | € 213,200 |
Information on how numbers w_14
Information on how numbers were calculated (Details 11) - EUR (€) | Dec. 31, 2019 | Dec. 31, 2018 |
SummaryOfInformationOnHowNumbersWereCalculatedLineItems [Line Items] | ||
Other assets | € 3,953,100 | € 1,588,702 |
Prepaid expenses | ||
SummaryOfInformationOnHowNumbersWereCalculatedLineItems [Line Items] | ||
Other assets | 1,920,153 | 1,032,676 |
Pre-payments | ||
SummaryOfInformationOnHowNumbersWereCalculatedLineItems [Line Items] | ||
Other assets | 698,891 | 14,067 |
Others | ||
SummaryOfInformationOnHowNumbersWereCalculatedLineItems [Line Items] | ||
Other assets | € 1,334,056 | € 541,419 |
Information on how numbers w_15
Information on how numbers were calculated (Details 12) - EUR (€) | Dec. 31, 2019 | Dec. 31, 2018 |
Information On How Numbers Were Calculated Details 7Abstract | ||
Non-current financial assets | € 272,614 | € 207,444 |
Current financial assets | 82,353,867 | 101,184,240 |
Trade and other payables | 12,413,662 | 6,657,312 |
Non-current lease liabilities | 330,745 | 0 |
Current lease liabilities | € 515,203 | € 0 |
Information on how numbers w_16
Information on how numbers were calculated (Details 13) - EUR (€) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Information On How Numbers Were Calculated Details 8Abstract | ||||
Deposits held in U.S. dollars | € 27,803,153 | € 32,918,604 | ||
Total | 27,803,153 | 32,918,604 | ||
Cash held in euro | 1,211,478 | 21,719,699 | ||
Cash held in U.S. dollars | 4,116,649 | 747,937 | ||
Total | 5,328,127 | 22,467,636 | ||
Total cash and cash equivalents | € 33,131,280 | € 55,386,240 | € 123,281,888 | € 29,116,737 |
Risk (Details)
Risk (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Market risk | |
SummaryOfRiskLineItems [Line Items] | |
Exposure | Future development costs; Recognized financial assets and liabilities not denominated in euro |
Measurement | Forecasted cash flows Sensitivity analysis |
Risk Management | Achievement of a natural hedge in the future |
Credit risk | |
SummaryOfRiskLineItems [Line Items] | |
Exposure | Cash and cash equivalents, debt investments |
Measurement | Credit rating |
Risk Management | Diversification of bank deposits, Investment guidelines for debt investments |
Liquidity | |
SummaryOfRiskLineItems [Line Items] | |
Exposure | R&D and G&A cost and trade payables |
Measurement | Rolling cash flow forecast |
Risk Management | Availability of funds through financing rounds or public offerings |
Risk (Details 1)
Risk (Details 1) | Dec. 31, 2019EUR (€) |
Risk Details 1Abstract | |
Current financial assets | € 32,947,491 |
Cash and cash equivalents | 4,123,532 |
Total assets exposed to the risk | € 37,071,023 |
Risk (Details 2)
Risk (Details 2) | 12 Months Ended |
Dec. 31, 2019EUR (€)$ / € | |
(1%) | |
SummaryOfRiskLineItems [Line Items] | |
Conversion rate | $ / € | 1.1346 |
Profit/(loss) in P&L | € (367,040) |
Carrying amount | € 36,703,983 |
1% | |
SummaryOfRiskLineItems [Line Items] | |
Conversion rate | $ / € | 1.1122 |
Profit/(loss) in P&L | € 374,455 |
Carrying amount | € 37,445,478 |
(5%) | |
SummaryOfRiskLineItems [Line Items] | |
Conversion rate | $ / € | 1.1796 |
Profit/(loss) in P&L | € (1,765,287) |
Carrying amount | € 35,305,736 |
5% | |
SummaryOfRiskLineItems [Line Items] | |
Conversion rate | $ / € | 1.0672 |
Profit/(loss) in P&L | € 1,951,106 |
Carrying amount | € 39,022,129 |
(10%) | |
SummaryOfRiskLineItems [Line Items] | |
Conversion rate | $ / € | 1.2357 |
Profit/(loss) in P&L | € (3,370,093) |
Carrying amount | € 33,700,930 |
10% | |
SummaryOfRiskLineItems [Line Items] | |
Conversion rate | $ / € | 1.0111 |
Profit/(loss) in P&L | € 4,119,003 |
Carrying amount | € 41,190,026 |
Risk (Details 3)
Risk (Details 3) - EUR (€) | Dec. 31, 2019 | Dec. 31, 2018 |
Risk Details 3Abstract | ||
Short-term deposits | € 27,803,153 | € 32,918,604 |
Cash at banks | 5,328,127 | 22,467,636 |
Marketable Securities | 81,895,377 | 100,868,129 |
Other (non-current portion) | 272,614 | 207,444 |
Other (current) | 458,491 | 316,112 |
Total funds available | € 115,757,762 | € 156,777,925 |
Risk (Details Narrative)
Risk (Details Narrative) - EUR (€) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Risk Details Narrative Abstract | ||||
Maximum exposure to counterparty credit risk | € 115,800,000 | € 156,800,000 | ||
Carrying amount of cash and cash equivalents | 33,131,280 | 55,386,240 | € 123,281,888 | € 29,116,737 |
Financial assets | € 82,600,000 | € 101,400,000 |
Commitments (Details)
Commitments (Details) - EUR (€) | Dec. 31, 2019 | Dec. 31, 2018 |
SummaryOfUnrecognizedItemsLineItems [Line Items] | ||
Commitments for minimum lease payments in relation to non-cancellable operating leases: | € 903,951 | € 575,011 |
Commitments for minimum payments in relation to non-cancellable operating contracts or services | 24,447,508 | 29,307,490 |
Within one year | ||
SummaryOfUnrecognizedItemsLineItems [Line Items] | ||
Commitments for minimum lease payments in relation to non-cancellable operating leases: | 371,105 | 282,711 |
Commitments for minimum payments in relation to non-cancellable operating contracts or services | 10,602,651 | 19,623,790 |
After one year but not more than five years | ||
SummaryOfUnrecognizedItemsLineItems [Line Items] | ||
Commitments for minimum lease payments in relation to non-cancellable operating leases: | 532,845 | 292,300 |
Commitments for minimum payments in relation to non-cancellable operating contracts or services | 13,844,857 | 9,683,700 |
More than five years | ||
SummaryOfUnrecognizedItemsLineItems [Line Items] | ||
Commitments for minimum lease payments in relation to non-cancellable operating leases: | 0 | 0 |
Commitments for minimum payments in relation to non-cancellable operating contracts or services | € 0 | € 0 |
Other information (Details)
Other information (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
InflaRx GmbH | ||
SummaryOfOtherInformationLineItems [Line Items] | ||
Place of business/ country of incorporation | Germany | |
Functional currency | EUR | |
Ownership interest held by the Group | 100.00% | 100.00% |
Principal activities | Principal operating subsidiary, biopharmaceutical company | |
InflaRx Pharmaceutical Inc. | ||
SummaryOfOtherInformationLineItems [Line Items] | ||
Place of business/ country of incorporation | U.S. | |
Functional currency | USD | |
Ownership interest held by the Group | 100.00% | 100.00% |
Principal activities | Subsidiary for basic research |
Other information (Details 1)
Other information (Details 1) - EUR (€) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SummaryOfOtherInformationLineItems [Line Items] | |||
Compensation of key management personnel | € 8,991,495 | € 13,649,754 | € 5,298,007 |
Executive Management | |||
SummaryOfOtherInformationLineItems [Line Items] | |||
Short-term employee benefits | 2,793,529 | 2,524,202 | 1,986,973 |
Share-based payments | 5,218,324 | 9,801,454 | 3,187,438 |
Compensation of key management personnel | 8,011,853 | 12,325,656 | 5,174,411 |
Non-executive Board of Directors | |||
SummaryOfOtherInformationLineItems [Line Items] | |||
Short-term employee benefits | 269,031 | 238,180 | 80,735 |
Share-based payments | 710,611 | 1,085,917 | 42,860 |
Compensation of key management personnel | € 979,642 | € 1,324,098 | € 123,596 |
Other information (Details 2)
Other information (Details 2) | 12 Months Ended | |||
Dec. 31, 2019shares€ / shares | Dec. 31, 2018shares€ / shares | |||
Equity settled share-based payment arrangement | ||||
Statement Line Items [Line Items] | ||||
Outstanding, beginning | shares | 289,309 | 533,820 | ||
Exercised | shares | 140,876 | 244,511 | ||
Outstanding, ending | shares | 148,433 | 289,309 | ||
Exercisable | shares | 148,433 | 289,309 | ||
Outstanding, beginning | € / shares | € 0.01 | € .01 | ||
Exercised | € / shares | 0.01 | .01 | ||
Outstanding, ending | € / shares | 0.01 | 0.01 | ||
Exercisable | € / shares | € .01 | € .01 | ||
2016 Plan | ||||
Statement Line Items [Line Items] | ||||
Outstanding, beginning | shares | 1,181,484 | 1,239,252 | ||
Exercised | shares | 0 | 57,768 | ||
Outstanding, ending | shares | 1,181,484 | 1,181,484 | ||
Exercisable | shares | 1,181,484 | 1,181,484 | ||
Outstanding, beginning | € / shares | € 7.81 | € 7.81 | ||
Exercised | € / shares | 7.81 | |||
Outstanding, ending | € / shares | 2.98 | [1] | 7.81 | |
Exercisable | € / shares | € 2.98 | [1] | € 7.81 | |
2017 Long term incentive plan | ||||
Statement Line Items [Line Items] | ||||
Outstanding, beginning | shares | 2,051,009 | 1,869,192 | ||
Granted | shares | 242,450 | 208,073 | ||
Forfeited | shares | 112,354 | 26,256 | ||
Outstanding, ending | shares | 2,181,105 | 2,051,009 | ||
Exercisable | shares | 1,319,548 | 626,933 | ||
Outstanding, beginning | € / shares | € 3.16 | [2] | € 2.79 | [1] |
Granted | € / shares | 2.91 | [3] | 5.05 | [4] |
Forfeited | € / shares | 5.51 | [5] | 2.84 | [1] |
Outstanding, ending | € / shares | 3.06 | [6] | 3.16 | [2] |
Exercisable | € / shares | € 3.13 | [7] | € 2.93 | [1] |
[1] | $3.35 | |||
[2] | $3.61 | |||
[3] | $3.25 | |||
[4] | $5.96 | |||
[5] | $6.17 | |||
[6] | $3.44 | |||
[7] | $3.52 |
Other information (Details 3)
Other information (Details 3) | 12 Months Ended | |
Dec. 31, 2019€ / shares€ / $$ / sharesyrshares | Dec. 31, 2018€ / shares€ / $$ / sharesyrshares | |
SummaryOfOtherInformationLineItems [Line Items] | ||
Number of share options | shares | 242,450 | 208,073 |
January 1 | ||
SummaryOfOtherInformationLineItems [Line Items] | ||
Number of share options | shares | 0 | |
Fair value at grant date Per option (USD) | 14.45 | |
Fair value at grant date FX rate as of grant date | € / $ | .88 | |
Fair value at grant date Per option (EUR) | € / shares | 12.69 | |
Share price at grant date (USD) | $ 26.02 | |
Expected volatility | 65.00% | |
Expected life (midpoint based) | yr | 4.8 | |
Risk-free rate (interpolated, U.S. sovereign strips curve) | 3.00% | |
February 4 | ||
SummaryOfOtherInformationLineItems [Line Items] | ||
Number of share options | shares | 18,450 | |
Fair value at grant date Per option (USD) | 18.17 | |
Fair value at grant date FX rate as of grant date | € / $ | .87 | |
Fair value at grant date Per option (EUR) | € / shares | 15.87 | |
Share price at grant date (USD) | $ 32.63 | |
Expected volatility | 65.00% | |
Expected life (midpoint based) | yr | 4.9 | |
Risk-free rate (interpolated, U.S. sovereign strips curve) | 2.60% | |
May 14 | ||
SummaryOfOtherInformationLineItems [Line Items] | ||
Number of share options | shares | 36,000 | |
Fair value at grant date Per option (USD) | 22.54 | |
Fair value at grant date FX rate as of grant date | € / $ | .89 | |
Fair value at grant date Per option (EUR) | € / shares | 20.08 | |
Share price at grant date (USD) | $ 41.39 | |
Expected volatility | 65.00% | |
Expected life (midpoint based) | yr | 4.7 | |
Risk-free rate (interpolated, U.S. sovereign strips curve) | 2.30% | |
Repricing, July 3 | ||
SummaryOfOtherInformationLineItems [Line Items] | ||
Number of share options | shares | 0 | |
Fair value at grant date FX rate as of grant date | € / $ | .89 | |
Share price at grant date (USD) | $ 3.35 | |
Expected volatility | 135.00% | |
Risk-free rate (interpolated, U.S. sovereign strips curve) | 2.30% | |
Repricing, July 3 | Minimum | ||
SummaryOfOtherInformationLineItems [Line Items] | ||
Fair value at grant date Per option (USD) | .46 | |
Fair value at grant date Per option (EUR) | € / shares | .40 | |
Expected life (midpoint based) | yr | 2.3 | |
Repricing, July 3 | Maximum | ||
SummaryOfOtherInformationLineItems [Line Items] | ||
Fair value at grant date Per option (USD) | 1.08 | |
Fair value at grant date Per option (EUR) | € / shares | .96 | |
Expected life (midpoint based) | yr | 4.6 | |
October 24 | ||
SummaryOfOtherInformationLineItems [Line Items] | ||
Number of share options | shares | 50,000 | |
Fair value at grant date Per option (USD) | 1.96 | |
Fair value at grant date FX rate as of grant date | € / $ | .90 | |
Fair value at grant date Per option (EUR) | € / shares | 1.76 | |
Share price at grant date (USD) | $ 2.28 | |
Expected volatility | 135.00% | |
Expected life (midpoint based) | yr | 4.7 | |
Risk-free rate (interpolated, U.S. sovereign strips curve) | 1.65% | |
December 16 | ||
SummaryOfOtherInformationLineItems [Line Items] | ||
Number of share options | shares | 38,000 | |
Fair value at grant date Per option (USD) | 3.07 | |
Fair value at grant date FX rate as of grant date | € / $ | .90 | |
Fair value at grant date Per option (EUR) | € / shares | 2.75 | |
Share price at grant date (USD) | $ 3.57 | |
Expected volatility | 135.00% | |
Expected life (midpoint based) | yr | 4.7 | |
Risk-free rate (interpolated, U.S. sovereign strips curve) | 1.79% | |
December 16 | ||
SummaryOfOtherInformationLineItems [Line Items] | ||
Number of share options | shares | 100,000 | |
Fair value at grant date Per option (USD) | 3.07 | |
Fair value at grant date FX rate as of grant date | € / $ | .90 | |
Fair value at grant date Per option (EUR) | € / shares | 2.75 | |
Share price at grant date (USD) | $ 3.57 | |
Expected volatility | 135.00% | |
Expected life (midpoint based) | yr | 4.7 | |
Risk-free rate (interpolated, U.S. sovereign strips curve) | 1.79% | |
February 7 | ||
SummaryOfOtherInformationLineItems [Line Items] | ||
Number of share options | shares | 28,002 | |
Fair value at grant date Per option (USD) | 13.79 | |
Fair value at grant date FX rate as of grant date | € / $ | 0.82 | |
Fair value at grant date Per option (EUR) | € / shares | 11.24 | |
Share price at grant date (USD) | $ 22.75 | |
Expected volatility | 73.00% | |
Expected life (midpoint based) | yr | 4.9 | |
Risk-free rate (interpolated, U.S. sovereign strips curve) | 2.60% | |
May 30 | ||
SummaryOfOtherInformationLineItems [Line Items] | ||
Number of share options | shares | 20,000 | |
Fair value at grant date Per option (USD) | 22.37 | |
Fair value at grant date FX rate as of grant date | € / $ | 0.86 | |
Fair value at grant date Per option (EUR) | € / shares | 19.23 | |
Share price at grant date (USD) | $ 37.85 | |
Expected volatility | 73.00% | |
Expected life (midpoint based) | yr | 4.6 | |
Risk-free rate (interpolated, U.S. sovereign strips curve) | 2.70% | |
July 20 | ||
SummaryOfOtherInformationLineItems [Line Items] | ||
Number of share options | shares | 54,000 | |
Fair value at grant date Per option (USD) | 19.80 | |
Fair value at grant date FX rate as of grant date | € / $ | 0.86 | |
Fair value at grant date Per option (EUR) | € / shares | 16.96 | |
Share price at grant date (USD) | $ 32.40 | |
Expected volatility | 73.00% | |
Expected life (midpoint based) | yr | 4.9 | |
Risk-free rate (interpolated, U.S. sovereign strips curve) | 2.80% | |
September 21 | ||
SummaryOfOtherInformationLineItems [Line Items] | ||
Number of share options | shares | 18,450 | |
Fair value at grant date Per option (USD) | 20.17 | |
Fair value at grant date FX rate as of grant date | € / $ | 0.85 | |
Fair value at grant date Per option (EUR) | € / shares | 17.15 | |
Share price at grant date (USD) | $ 33.06 | |
Expected volatility | 73.00% | |
Expected life (midpoint based) | yr | 4.9 | |
Risk-free rate (interpolated, U.S. sovereign strips curve) | 3.00% | |
November 20 | ||
SummaryOfOtherInformationLineItems [Line Items] | ||
Number of share options | shares | 12,621 | |
Fair value at grant date Per option (USD) | 13.39 | |
Fair value at grant date FX rate as of grant date | € / $ | 0.88 | |
Fair value at grant date Per option (EUR) | € / shares | 11.75 | |
Share price at grant date (USD) | $ 26.02 | |
Expected volatility | 65.00% | |
Expected life (midpoint based) | yr | 4 | |
Risk-free rate (interpolated, U.S. sovereign strips curve) | 2.93% | |
November 20/ January 1, 2019 | ||
SummaryOfOtherInformationLineItems [Line Items] | ||
Number of share options | shares | 75,000 | |
Fair value at grant date Per option (USD) | 14.45 | |
Fair value at grant date FX rate as of grant date | € / $ | 0.88 | |
Fair value at grant date Per option (EUR) | € / shares | 12.69 | |
Share price at grant date (USD) | $ 26.02 | |
Expected volatility | 65.00% | |
Expected life (midpoint based) | yr | 4.8 | |
Risk-free rate (interpolated, U.S. sovereign strips curve) | 3.00% |
Other Information (Details 4)
Other Information (Details 4) - EUR (€) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Line Items [Line Items] | |||
Total compensation expense | € 6,832,210 | € 12,084,651 | € 4,550,105 |
2022 | |||
Statement Line Items [Line Items] | |||
2016 Plan | 0 | ||
2017 Long-term incentive plan | 0 | ||
2016 Plan | 0 | ||
2017 long-term incentive plan | 0 | ||
Total compensation expense | 0 | ||
2021 | |||
Statement Line Items [Line Items] | |||
2016 Plan | 0 | ||
2017 Long-term incentive plan | 300,000 | ||
2016 Plan | 0 | ||
2017 long-term incentive plan | 0 | ||
Total compensation expense | 300,000 | ||
2020 | |||
Statement Line Items [Line Items] | |||
2016 Plan | 0 | ||
2017 Long-term incentive plan | 2,100,000 | ||
2016 Plan | 0 | ||
2017 long-term incentive plan | 300,000 | ||
Total compensation expense | 2,400,000 | ||
2019 | |||
Statement Line Items [Line Items] | |||
2016 Plan | 0 | ||
2017 Long-term incentive plan | 5,200,000 | ||
2016 Plan | 500,000 | ||
2017 long-term incentive plan | 1,100,000 | ||
Total compensation expense | 6,800,000 | ||
2018 | |||
Statement Line Items [Line Items] | |||
2016 Plan | 0 | ||
2017 Long-term incentive plan | 12,100,000 | ||
2016 Plan | 0 | ||
2017 long-term incentive plan | 0 | ||
Total compensation expense | 12,100,000 | ||
2017 | |||
Statement Line Items [Line Items] | |||
2016 Plan | 4,000,000 | ||
2017 Long-term incentive plan | 600,000 | ||
2016 Plan | 0 | ||
2017 long-term incentive plan | 0 | ||
Total compensation expense | € 4,600,000 |
Other information (Details 5)
Other information (Details 5) | Dec. 31, 2018EUR (€) |
Other Information Details 3Abstract | |
Operating lease commitments disclosed as of December 31, 2018 | € 575,000 |
Short-term leases recognized on a straight-line basis as expense | (17,765) |
Low-value leases recognized on a straight-line basis as expense | (5,993) |
Adjustments as a result of a different treatment of extension and termination options | 201,127 |
Total | 752,369 |
Discount using the lessee's incremental borrowing rate of at the date of initial application | (21,697) |
Lease liability recognized as of January 1, 2019 | 730,672 |
thereof current lease liability | 215,312 |
thereof non-current lease liabilities | € 515,360 |