Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Cover [Abstract] | |
Entity Registrant Name | InflaRx N.V. |
Entity Central Index Key | 0001708688 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2020 |
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 | 28,228,415 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2020 |
Consolidated statements of comp
Consolidated statements of comprehensive loss - EUR (€) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Expenses | |||
Research and development expenses | € (25,684,140) | € (44,582,136) | € (25,028,554) |
General and administrative expenses | (8,467,203) | (12,501,048) | (12,786,869) |
Total operating expenses | (34,151,343) | (57,083,184) | (37,815,422) |
Other income | 221,748 | 400,253 | 303,860 |
Other expenses | (13,209) | (85,242) | (4,802) |
Operating result | (33,942,804) | (56,768,173) | (37,516,364) |
Finance income | 887,702 | 2,840,676 | 2,182,842 |
Finance expenses | (26,000) | (22,265) | 0 |
Foreign exchange result | (776,512) | 694,944 | 5,626,071 |
Other financial result | (126,000) | 0 | (107,182) |
Income taxes | 0 | 0 | 0 |
Loss for the period | € (33,983,614) | € (53,254,817) | € (29,814,634) |
Share information | |||
Weighted average number of shares outstanding | 27,064,902 | 26,004,519 | 25,095,027 |
Loss per share (basic/diluted) | € (1.26) | € (2.05) | € (1.19) |
Loss for the period | € (33,983,614) | € (53,254,817) | € (29,814,634) |
Other comprehensive income (loss) that may be reclassified to profit or loss in subsequent periods: | |||
Exchange differences on translation of foreign operations | (5,954,019) | 2,177,033 | 50,196 |
Total comprehensive loss | € (39,937,633) | € (51,077,785) | € (29,764,438) |
Consolidated statements of fina
Consolidated statements of financial position - EUR (€) | Dec. 31, 2020 | Dec. 31, 2019 | |
Non-current assets | |||
Property and equipment | [1] | € 408,263 | € 576,373 |
Right-of-use assets | [1] | 546,694 | 836,924 |
Intangible assets | 350,183 | 452,400 | |
Other assets | 353,522 | 452,217 | |
Financial assets | 272,268 | 272,614 | |
Total non-current assets | 1,930,930 | 2,590,528 | |
Current assets | |||
Current other assets | [1] | 3,734,700 | 2,365,916 |
Income tax receivable | [1] | 1,419,490 | 1,134,968 |
Financial assets | 55,162,033 | 82,353,867 | |
Cash and cash equivalents | 25,968,681 | 33,131,280 | |
Total current assets | 86,284,904 | 118,986,031 | |
Total assets | 88,215,834 | 121,576,558 | |
Equity | |||
Issued capital | 3,387,410 | 3,132,631 | |
Share premium | 220,289,876 | 211,006,606 | |
Other capital reserves | 26,259,004 | 25,142,213 | |
Accumulated deficit | (168,345,620) | (134,362,006) | |
Other components of equity | (3,726,791) | 2,227,228 | |
Total equity | 77,863,880 | 107,146,673 | |
Non-current liabilities | |||
Lease liabilites | 220,525 | 330,745 | |
Other liabilities | 33,323 | 39,013 | |
Total non-current liabilities | 253,847 | 369,758 | |
Current liabilities | |||
Trade and other payables | 8,258,133 | 12,413,662 | |
Lease liabilities | 338,516 | 515,203 | |
Employee benefits | 1,368,731 | 975,629 | |
Other liabilities | 117,727 | 105,634 | |
Provisions | 15,000 | 50,000 | |
Total current liabilities | 10,098,107 | 14,060,128 | |
Total liabilities | 10,351,954 | 14,429,886 | |
Total equity and liabilities | € 88,215,834 | € 121,576,558 | |
[1] | Please refer to Note 2.1 regarding certain presentational reclassifications. |
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, 2017 | 23,812,100 | ||||||
Beginning 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 | ||||
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 | ||||
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 | |
Loss for the period | (33,983,614) | (33,983,614) | |||||
Exchange differences on translation of foreign operations | (5,954,019) | (5,954,019) | |||||
Total comprehensive loss | (33,983,614) | (5,954,019) | (39,937,633) | ||||
Issue of common shares, shares | 1,958,186 | ||||||
Issue of common shares, amount | 234,982 | 9,535,961 | 9,770,943 | ||||
Transaction costs | (729,840) | (729,840) | |||||
Equity-settled share-based payment | 1,116,791 | 1,116,791 | |||||
Share options exercised, shares | 164,974 | ||||||
Share options exercised, amount | 19,797 | 477,149 | 496,946 | ||||
Ending balance, shares at Dec. 31, 2020 | 28,228,415 | ||||||
Ending balance, amount at Dec. 31, 2020 | € 3,387,410 | € 220,289,876 | € 26,259,004 | € (168,345,620) | € (3,726,791) | € 77,863,880 |
Consolidated statements of cash
Consolidated statements of cash flows - EUR (€) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities | |||
Loss for the period | € (33,983,614) | € (53,254,817) | € (29,814,634) |
Adjustments for | |||
Depreciation & amortization of property and equipment, right-of-use assets and intangible assets | 712,713 | 663,166 | 173,630 |
Net finance income | 40,810 | (3,513,355) | (7,701,731) |
Share based payment expense | 1,116,791 | 6,832,210 | 12,084,651 |
Net foreign exchange differences | (247,322) | (368,477) | (17,257) |
Other non-cash adjustments | 3,436 | 60,628 | 213,956 |
Working capital adjustments | |||
Other assets | (1,554,611) | (2,364,399) | (893,602) |
Current financial assets | 0 | 0 | (316,112) |
Employee benefits | 355,545 | 235,500 | 494,837 |
Other liabilities | 8,960 | (209,948) | 304,627 |
Trade and other payables | (4,155,529) | 5,734,795 | 2,243,137 |
Interest received | 1,201,547 | 3,001,109 | 1,679,250 |
Interest paid | (26,387) | (20,903) | 0 |
Net cash used in operating activities | (36,527,661) | (43,204,492) | (21,549,248) |
Investing activities | |||
Purchase of intangible assets and property and equipment | (94,189) | (594,889) | (806,531) |
Purchase of non-current other financial assets | 0 | (75,543) | (209,705) |
Proceeds from the disposal of non-current other financial assets | 0 | 0 | 21,811 |
Purchase of current financial assets | (101,600,176) | (82,547,409) | (106,445,120) |
Proceeds from the maturity of current financial assets | 123,056,347 | 103,559,395 | 7,990,204 |
Net cash flows from/(used in) investing activities | 21,361,982 | 20,341,554 | (99,449,341) |
Cash flow from financing activities | |||
Proceeds from issuance of common shares | 9,770,944 | 0 | 52,990,733 |
Transaction costs from issuance of common shares | (729,840) | 0 | (3,801,265) |
Proceeds from exercise of share options | 496,946 | 1,676 | 452,075 |
Repayment of leasing liabilities | (366,156) | (296,020) | 0 |
Net cash flows from/(used in) financing activities | 9,171,893 | (294,344) | 49,641,542 |
Net increase/(decrease) in cash and cash equivalents | (5,993,786) | (23,157,282) | (71,357,047) |
Effect of exchange rate changes on cash and cash equivalents | (1,168,813) | 902,321 | 3,461,399 |
Cash and cash equivalents at beginning of period | 33,131,280 | 55,386,240 | 123,281,888 |
Cash and cash equivalents at end of period | € 25,968,681 | € 33,131,280 | € 55,386,240 |
Corporate information
Corporate information | 12 Months Ended |
Dec. 31, 2020 | |
Corporate Information | |
Corporate information | The consolidated financial statements of InflaRx N.V. and its subsidiaries (collectively, the ‘Group’) for the year ended December 31, 2020 were authorized for issue in accordance with a resolution of the Board of Directors on March 24, 2021. InflaRx N.V. (the ‘Company’) 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 N.V. and its subsidiaries are 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. 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. The Group’s subsidiaries at December 31, 2020 are set out below. Unless otherwise stated, they have share capital consisting solely of common shares that are held directly by the Company, and the proportion of ownership interests held equals the voting rights held by the Company. Name Place of business/ country of incorporation Functional currency Ownership interest held by the Company 2020 2019 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 |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies | |
Significant accounting policies | 2.1. Basis of preparation The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (herein ‘IFRS’). The consolidated financial statements have been prepared on a historical cost basis. Certain prior year amounts have been reclassified for consistency with the current year presentation. ‘Right-of-use assets’ have been presented separately from ‘Property and equipment’ and ‘Income tax receivable’ has been presented separately from ‘Current other non-financial assets’ in the statements of financial position. These reclassifications had no effect on the reported results of operations. These consolidated financial statements of the Group comprise the Company and its wholly-owned subsidiaries InflaRx GmbH, and InflaRx Pharmaceutical Inc. The consolidated financial statements are presented in Euro (€). Effective January 1, 2019, the functional currency of InflaRx N.V. has changed to the U.S. Dollar ($ or USD) from €, as most of the income and expenses of InflaRx N.V. occur in $. 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, unless stated otherwise. 2.2. 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. 2.2..1. New and amended standards adopted by the Group The below listed amendments and interpretations apply for the first time in 2020, but do not have a material impact on the consolidated financial statements of the Group: · Conceptual Framework Amendments, References to the Conceptual Framework in IFRS Standards (IFRS 2 Share-Based Payment, IFRS 3 Business Combinations, IAS 1 Presentation of Financial Statements, IAS 8 Accounting Policies, IAS 34 Interim Financial Reporting, IAS 37 Provisions, Contingent Liabilities and Contingent Assets, IFRIC 12 Service Concession Arrangements, IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments IFRIC 22 Foreign Currency Transactions and Advance Consideration, SIC 32 Intangible Assets — Web Site Costs,), effective as of January 1, 2020 · IFRS 3 Business Combinations, Definition of a business, effective January 1, 2020 · IAS 39 Financial Instruments: Recognition and Measurement, IFRS 7 Financial Instruments Disclosures, IFRS 9 Financial Instruments, Interest Rate Benchmark Reform — Phase 1, effective January 1, 2020, · IAS 1 Presentation of Financial Statements, IAS 8 Accounting Policies, Definition of Material, as of January 1, 2020 2.2..2. New standard not yet adopted The following amendments will be adopted effective January 1, 2021 and are not expected to have a material impact on the consolidated financial statements of the Group: · Interest Rate Benchmark Reform — Phase 2, Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 · COVID-19-related Rent Concessions, Amendment to IFRS 16 The following standards issued will be adopted in a future period and the potential impact, if any, they will have on the Group’s consolidated financial statements is being assessed: · Amendments to IFRS 4 Insurance Contracts · IFRS 17 Insurance Contracts, including Amendments to IFRS 17 · Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current and Classification of Liabilities as Current or Non-current · Amendments to IFRS 3 Business Combinations; IAS 16 Property, Plant and Equipment; IAS 37 Provisions, Contingent Liabilities and Contingent Assets; Annual Improvements 2018-2020 · Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting policies · Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates 2.2..3. Current and non-current classification The Group presents assets and liabilities in the statement of financial position based on current/non-current classification. Current assets include assets that are sold, consumed or realized as part of the normal operating cycle (operating cycle is assumed to be 12 months), or cash and cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current. Current liabilities, such as trade payables, lease liabilities or employee benefits with a term of up to 12 months, and payables for operating costs or social security charges, are part of the working capital used in the Company’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. All other liabilities are classified as non-current. 2.2..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 a currency other than Euro (the presentation currency of the Company’s) are translated into Euros at the rate of exchange prevailing at the reporting date and their statements of operations 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. 2.2..5. Notes to the cash flow statement, cash, and cash equivalents The consolidated statements of cash flows have been prepared using the indirect method for cash flows from operating activities. The cash disclosed in the consolidated statements of cash flows is comprised of cash and cash equivalents. Cash comprises cash on hand and demand deposits. Cash equivalents are short-term bank deposits that are readily convertible to a known amount of cash 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. 2.2..6. Research and development expenses 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 the Company’s clinical drug product; additionally, costs are incurred for 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. Therefore, research expenditure and development expenditures are expensed when incurred. 2.2..7. Employee benefits 2.2..7.1. 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 employee benefits in the consolidated statements of financial position. 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. 2.2..7.2. 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 conditions are expected to be met, including an estimate of forfeitures, such that the amount ultimately recognized is based on the number of awards that meet the related service 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 gain or loss recognized for differences between expected and actual outcomes. 2.2..8. Lease arrangements 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 collateral for borrowing purposes. The Group applied IFRS 16 Leases for the first time starting January 1, 2019, previous periods were not adjusted retrospectively. See Note 4.4 for the effect of this change on amounts recognized in profit or loss. 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 January 1, 2019, 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. Set forth below are the accounting policies of the Group applied under IFRS 16 after its first-time adoption effective January 1, 2019. 2.2..8.1. 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. On December 31, 2020, the remaining useful lives of the Company’s right-of-use assets range between four and 33 months. Right-of-use assets are subject to impairment. 2.2..8.2. 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 which 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, since 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. 2.2..8.3. 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. 2.2..8.4. Determining the lease term of contracts 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. The Group further 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. The leases which currently also result in the capitalization of a right of use asset, do not include any renewal options. For future lease contracts with potential renewal options the Company applies judgement in evaluating whether it is reasonably certain to exercise the option to renew. In doing so, management would consider all relevant factors that create an economic incentive for it to exercise the renewal. 2.2..9. Interest income Interest income is derived from interest-bearing financial assets, including cash equivalents. Interest income on cash and cash equivalents, financial assets at amortized cost calculated using the effective interest rate method is recognized in the consolidated statements of operations and comprehensive loss as part of finance income. 2.2..10. 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 and accumulated impairment losses, if any. 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. 2.2..11. Property and equipment Laboratory and office equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items. All repairs and maintenance are recognized in profit or loss during the financial period in which they are incurred, because they do not constitute a separate asset. Depreciation on laboratory and office 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’ or ‘other expenses’ in the consolidated statements of operations and comprehensive loss. 2.2..12. Financial assets and liabilities (financial instruments) 2.2..12.1. Definition 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 assets include predominantly quoted fixed-interest debt securities. The financial liabilities comprise trade and other payables (incl. accrued liabilities from the R&D projects). 2.2..12.2. Criteria for the recognition and derecognition, initial measurement In general purchases or sales of financial assets are recognized on the settlement date, i.e., the date that the Group renders or receives the counter performance (typically cash). The Group initially measures a financial asset at its fair value plus transaction costs. The Group initially recognizes non-derivative financial liabilities on the date that they are originated at fair value net of directly attributable transaction costs. The Group derecognizes a financial liability when its contractual obligations are discharged, cancelled, or expire. 2.2..12.3. Subsequent measurement method Considering the Group’s business model for managing the financial assets, whose objective is to hold them in order to collect contractual cash flows, and their contractual cash flow characteristics, that are solely payments of principal and interest on the principal amount outstanding, the Group classifies the quoted debt securities with fixed interest rates as subsequently measured at amortized cost using the effective interest method (EIR). The financial assets are also subject to impairment. The Group’s financial liabilities are classified as subsequently measured at amortized cost which is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of the EIR. An analysis of the carrying amounts from the consolidated statements of financial position by measurement category is disclosed under ‘under ‘4.7 Financial assets and financial liabilities.’ 2.2..12.4. Criteria for realization of income and expenses Interest income is accrued using the relevant effective interest rate. Interest expense on liabilities, if any, is also accrued based on the effective interest rate. Gains and losses on the disposal of financial instruments are recognized in full when all significant risks and rewards have been transferred. In the case of a partial transfer of risks and rewards, a distinction would be made as to whether control remains with the company or is transferred. Impairment losses on financial assets are recognized in profit or loss. The Group recognizes an allowance for expected credit losses (ECLs) for the financial assets held, see Note ‘3.4 Net Financial Result’. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. ECLs are generally recognized in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). For the quoted debt securities with fixed interest rates, which have high credit ratings and no significant increases in credit risk since initial recognition, the Group determines the exposure to credit default using CDS pricing information (i.e. credit default swap values) published by credit agencies and recognizes a 12-month ECL. 2.2..13. Fair Value Measurement The Group does not measure any financial asset or liability at fair value. The carrying amount of all financial instruments approximates their fair value, with the exception of quoted debt securities which fair values are disclosed (see ‘4.7 Financial assets and financial liabilities’). When measuring the fair value of an asset or a liability, the Group would use 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 would recognize transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred. 2.2..14. Income tax 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. 2.2..15. Current income tax Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. Expected tax payable or receivable on the taxable income or loss for the year, are calculated using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. In the periods presented; the Group did not incur income tax expense. Taxes withheld by banks and remitted to tax authorities were reimbursed after filing of the annual tax declaration. 2.2..16. Deferred income tax 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 arising from tax loss carryforwards are recognized only to the extent that the Group has sufficient taxable temporary differences or there is convincing evidence that sufficient future taxable profit will be available against which the unused tax losses can be utilized. As of December 31, 2020 and 2019, based on management’s judgment, it was not probable that taxable profit will be available against which the unused tax losses can be utilized; no deferred tax assets were therefore recognized in the consolidated statements of financial position. 2.3. Significant accounting judgements, estimates and assumptions 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 consolidated financial statements, the critical judgments made by management in applying the Group's accounting policies involve the following areas: Accounting for share-based payments When determining the grant date fair value of share-based payment awards, assumptions must be made regarding the key parameters of the grant (see Note ‘3.6.2 Measurement of fair values of share options granted’). In 2020, the Company kept its share price volatility assumption at 135% which has been used for the valuation of all share option grants since June 2019. Although the average volatility has decreased to approximately 130% since June 2019, management believes that an average volatility of 135% is still appropriate as future value inflection points will influence the share price of the Company and consequently will increase the volatility. Additionally, the Company must estimate the number of equity instruments which will vest in future periods as awards may be forfeited prior to vesting due to an awardee’s failure to satisfy a performance condition, including due to employment termination. An assumption of the forfeiture rate must be made based on historical information and adjusted to reflect future expectations. Revisions to the forfeiture rate could result in a cumulative effect of the change in estimate for current and prior periods to be recognized in the period of change (see Note 3.6.3 ‘Change in the accounting estimate of the share options expected to vest’). Measurement of third-party R&D clinical trial accruals and related expense In measuring R&D expenses for the reporting period, the Company estimates the amount of expense to recognize and liability to accrue as far as the invoices of third-party service providers are not yet received (e.g. for pass-through costs charged by the Company’s contract research organizations (‘CROs’) and exceed any prepayments made. The timing of the invoicing of project services by CROs follow contractual billing schedules and can occur several months prior to or following a reporting period. This estimation involves determining a percentage-of-completion whereby the degree to which services have been rendered for the individual project activities contracted from the CRO is assessed and estimated by in-house R&D project managers and reviewed by the controlling department. This percentage-of-completion is used to measure the amount of the unbilled project activities which have already been rendered by the reporting date and the associated R&D expense and liability to recognize as a result. The percentage-of-completion estimates are based on the best information available at the time. However, additional information may become available in the future and management may adjust the estimate in such future periods. In this event, the Company may be required to record adjustments to research and development expenses in future periods when the actual level of activity becomes more certain. The Company considers resulting increases or decreases in expenses as changes in estimates and reflects such changes in research and development expenses in the period identified. The Company has accrued €5,250,654 as of December 31, 2020 and €8,274,042 as of December 31, 2019 (see Note 4.10 Trade and other payables) in third-party clinical trial accruals. As of these dates, prepayments were recorded for those payments made against which no services had yet been rendered (2020: €1,923,365, 2019: €698,891, see Note 4.5 Other non-financial assets). |
Consolidated statements of oper
Consolidated statements of operations and comprehensive loss | 12 Months Ended |
Dec. 31, 2020 | |
Statement of comprehensive income [abstract] | |
Consolidated statements of operations and comprehensive loss | 3.1. Research and development expenses Research and development decreased in 2020 compared to in 2019 due to the Company’s lower activities in the area of clinical studies and manufacturing. The items below comprise research and development expenses. Research and development expenses 2020 2019 2018 (in €) Third-party services 19,886,693 36,783,223 15,909,366 manufacturing of clinical material 3,075,347 13,479,235 4,828,534 clinical, pre-clinical 16,811,346 23,303,988 11,080,832 Employee benefits expenses 4,480,890 6,231,812 8,037,082 Equity-settled share-based payment expense 626,833 2,580,983 5,256,194 Legal and consulting fees 862,364 668,676 421,041 Other expenses 454,193 898,425 661,065 Total 25,684,140 44,582,136 25,028,554 3.2. General and administrative expenses General and administrative expenses include the items below. Compared to the prior year the decrease is mainly caused by lower employee benefits expenses, as well as a decrease of the Company’s business activities and the expense of operating as a public company in the United States. General and administrative expenses 2020 2019 2018 (in €) Employee benefits expenses 3,880,349 7,534,073 9,146,955 Equity-settled share-based payment expense 489,958 4,251,227 6,828,457 Legal and consulting fees 1,603,711 2,199,640 2,020,447 Insurance expenses 1,311,790 636,035 368,339 Depreciation & amortization expense 556,456 503,683 115,330 Compensation expense for non-executive board directors 283,128 269,030 238,180 Other expenses 831,769 1,358,587 897,618 Total 8,467,203 12,501,048 12,786,869 3.3. Employee benefits expenses The following table shows the items of employee benefits expenses: Employee benefits expenses 2020 2019 2018 (in €) Wages and salaries 6,270,757 5,974,807 4,501,840 Social Security contributions (employer's share) 551,804 562,255 350,024 Equity-settled share-based payment expenses (see Note 3.6 Share-based payments) 1,116,791 6,832,210 12,084,651 Other 421,887 396,613 247,522 Total 8,361,239 13,765,885 17,184,037 The number of employees rose to 47.3 full time equivalents (FTEs) at the end of 2020 from 43.7 FTEs at the end of 2019 and 36.8 FTEs at the end of 2018 (numbers are as of December 31 and are not annual average numbers). 3.4. Net Financial Result 3.4..1. Finance Result Finance Result 2020 2019 2018 (in €) Finance income Interest income 887,702 2,840,676 2,182,842 Finance expenses Interest expenses (18,689) (9,500) — Interest on lease liabilities (7,311) (12,765) — Total 861,702 2,818,411 2,182,842 3.4..2. Foreign exchange result Foreign exchange result 2020 2019 2018 (in €) Foreign exchange result Foreign exchange income 3,656,922 3,379,644 8,249,853 Foreign exchange expense (4,433,435) (2,684,700) (2,623,782) Total (776,513) 694,944 5,626,071 Foreign exchange income and expense is mainly derived from group entities that do not use the U.S. dollar as their 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 and losses are caused by a change in the exchange rates as of the reporting dates and may not ultimately be realized. 3.4..3. Other financial result 2020 2019 2018 (in €) Other financial result (126,000) — (107,182) Other financial result is comprised of an expense of €126,000 (nil in 2019 and 2018) due to an adjustment to the expected credit loss allowance in 2020, which is deducted from the Company’s current and non-current financial assets (please also refer to 4.5 ‘Other non-financial assets’). 3.5. 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 2020 is 27,064,902, for 2019 is 26,004,519 and for 2018 is 25,095,027. For the period in which the Company is in a loss-making situation, the diluted loss per share is the same as basic loss per share, because the weighted average number of shares to be issued upon the exercise of the stock options would produce an anti-dilutive effect. 3.6. Share-based payments 3.6..1. Equity-settled share-based payment arrangements In the course of its historical financing rounds prior to 2016, InflaRx GmbH established equity-settled share-based payment programs. Those InflaRx GmbH options were converted into options for common shares of InflaRx N.V. in November 2017: 2020 Options 2020 WAEP* 2019 Options 2019 WAEP Outstanding at January 1 148,433 €0.01 289,309 €0.01 Exercised during the year (1) — — (140,876) €0.01 Outstanding at December 31 148,433 €0.01 148,433 €0.01 Exercisable at December 31 148,433 €0.01 148,433 €0.01 * Weighted average share price (WAEP) The weighted average remaining contractual life for the share options outstanding as at 31 December 2020 was 2.43 years (2019: 3,43 years). The exercise price for all options outstanding at the end of the year was €0.01 per share or less (2019: €0.01 or less). Under the terms and conditions of the share option plan of 2016 (the “2016 Plan”), InflaRx GmbH granted rights to subscribe for InflaRx GmbH’s common shares to directors, senior management, and key employees. Those InflaRx GmbH options were converted into options for common shares of InflaRx N.V. in November 2017: 2020 options 2020 WAEP* 2019 options 2019 WAEP* Outstanding at January 1 1,181,484 $3.35/€2.98 1,181,484 €7,81 Exercised during the year (1) (86,632) $3.35/€2.94 — — Outstanding at December 31 1,094,852 $3.35/€2.73 1,181,484 $3.35/€2.98 Exercisable at December 31 1,094,852 $3.35/€2.73 1,181,484 $3.35/€2.98 * conversion rates used for one €: December 31, 2020 $0.8149, average rate 2020 $0.8762, January 1, 2020/December 31, 2019 $0.8902, average rate 2019 $0.8932 The weighted average remaining contractual life for the share options outstanding as at December 31, 2020 was 10.93 years (2019: 11.95 years). In conjunction with the closing of its initial public offering, InflaRx N.V. established a new incentive plan (the “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: 2020 Options 2020 WAEP* 2019 Options 2019 WAEP* Outstanding at January 1 2,181,105 $3.44 /€3.06 2,051,009 $3.61/€3.16 Granted during the year 246,188 $4.83 /€4.23 242,450 $3.25/€2.91 Exercised during the year (78,342) $3.35 /€2.94 — — Forfeited during the year (202,473) $3.61 /€3.17 (112.354) $6.17/€5.51 Outstanding at December 31 2,146,478 $3.59 /€2.93 2,181,105 $3.44/€3.06 Exercisable at December 31 1,863,790 $3.46 /€2.82 1,319,548 $3.52/€3.13 * conversion rates used for one €: December 31, 2020 $0.8149, average rate 2020 $0.8762, January 1, 2020/December 31, 2019 $0.8902, average rate 2019 $0.8932 The weighted average remaining contractual life for the share options outstanding as at December 31, 2020 was 5.38 years (2019: 6.21 years). For grants with unvested share options outstanding at December 31, 2020, the options granted vest over a period of two or three years, depending on the grant, with 1/2 or 1/3, respectively, of the options vesting after the end of the 1st year after vesting start and the remaining options vesting monthly The weighted average fair value of options granted during the year was $3.88/€3.40 (2019: $8.16/€7.29). The range of exercise prices for options outstanding at the end of the year was $2.28/€1.86 to $22.75/€18.54 (2019: 2.28/€2.03 to $22.75/€20.25). On July 3, 2019, the Board of Directors 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 1,181,484 share options from the 2016 Plan and 2,105,459 share options from the 2017 Long-Term Incentive Plan. The valuation of past grants with the new exercise price of $3.35 resulted in an increase in fair value of the outstanding options (i.e. additional compensation expense was recognized). Please 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 2020, 2019 or 2018. 3.6..2. Measurement of fair values of share options granted The fair value of options granted in 2020 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 Options Fair value per option FX rate as of grant date Fair value per option Share price at grant date / Exercise price Expected volatility Expected life (midpoint based) Risk-free rate (interpolated, U.S. sovereign strips curve) 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 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 was recognized in 2019. * Options granted to the executive management 2020 September 18 71,186 $4.16 0.85 €3.52 $4.83 1.35 4.8 0.36% September 18 25,002 $4.21 0.85 €3.56 $4.83 1.35 5.0 0.39% October 1 150,000 $3.69 0.85 €3.14 $4.28/$4.83 1.35 5.0 0.36% 246,188 Of the options granted in 2020, 200,000 were granted to members of the executive management. For 150,000 options out of those, the grant date, as it is defined by IFRS 2, is determined to be October 1, 2020, the start of the awardee’s employment. Expected dividends are nil for all share options listed above. Expected volatility has been based on the historical volatility of the Company’s share price. Considering a significant price drop on June 5, 2019, averages were calculated including and excluding this trading day which results in an average volatility of 128% (124% in 2019). For grants after June 2019 the Company has selected a volatility of 135% which 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. The annual general meeting on July 16, 2020, approved an amendment to the 2017 Long-Term Incentive Plan (LTIP) with effect from January 1, 2021: · increasing the maximum annual number of common shares in the Company’s capital available for issuance under the LTIP, starting on January 1, 2021, to 4% (from 3%) of the Company’s outstanding common shares (determined as of December 31 of the immediately preceding year); and · removing certain restrictions from the LTIP, which will allow the committee administering the LTIP and the Board to (i) lower the exercise price per share of any options and/or share appreciation rights issued under the LTIP or take any other action treated as a ‘repricing’ of an award and (ii) cancel any option and/or share appreciation rights in exchange for cash or another award granted under the LTIP, in either case, without prior approval of the Company’s shareholders. 3.6..3. Change in the accounting estimate of the share options expected to vest Due to terminations in the third quarter of 2020, effective July 1, 2020, the Company has revised its forfeiture assumptions regarding the number of equity instruments that will vest in future quarters. As a result of this change in estimate, the Company recognized a benefit of €64.0 thousand in research and development expenses and a benefit of €72.9 thousand in general and administrative expenses in 2020 and will recognize €41.5 thousand less expense in research and development expenses and €27.0 thousand less expense in general and administrative expenses from share-based payments in the remaining vesting periods until June 30, 2022. The forfeiture assumptions will be continuously monitored and adjusted when necessary and appropriate. |
Consolidated statements of fi_2
Consolidated statements of financial position | 12 Months Ended |
Dec. 31, 2020 | |
Statement of financial position [abstract] | |
Consolidated statements of financial position | 4.1. Property and equipment Property and equipment Advance payments Total Cost (in €) At January 1, 2019 995,179 — 995,179 Additions 259,647 54,338 313,985 Disposals (142,400) — (142,400) Reclassification 54,408 (54,408) — Exchange differences 6,639 70 6,709 At December 31, 2019 1,173,473 — 1,173,473 Additions 66,114 — 66,114 Disposals (5,298) — (5,298) Exchange differences (34,750) — (34,750) At December 31, 2020 1,199,540 — 1,199,540 Accumulated depreciation At January 1, 2019 (370,510) — (370,510) Depreciation charge for the year (252,627) — (252,627) Disposals 26,235 — 26,235 Exchange differences (198) — (198) At December 31, 2019 (597,101) — (597,101) Depreciation charge for the year (212,733) — (212,733) Disposals 1,793 — 1,793 Exchange differences 16,764 — 16,764 At December 31, 2020 (791,277) — (791,277) Net book value At December 31, 2019 576,372 — 576,372 At December 31, 2020 408,263 — 408,263 4.2. Right-of-use assets Buildings Cars Total Cost (in €) At January 1, 2019 695,614 35,058 730,672 Additions 636,754 — 636,754 Disposals (266,057) — (266,057) Exchange differences 1,512 — 1,512 At December 31, 2019 1,067,823 35,058 1,102,881 Additions — 101,993 101,993 Disposals — (28,366) (28,366) Exchange differences (7,997) — (7,997) At December 31, 2020 1,059,826 108,685 1,168,512 Accumulated depreciation At January 1, 2019 — — — Depreciation charge for the year (283,350) (20,831) (304,181) Disposals 38,008 — 38,008 Exchange differences 216 — 216 At December 31, 2019 (245,126) (20,831) (265,957) Depreciation charge for the year (335,608) (34,410) (370,018) Disposals — 7,880 7,880 Exchange differences 6,277 — 6,277 At December 31, 2020 (574,457) (47,361) (621,818) Net book value At December 31, 2019 822,697 14,227 836,924 At December 31, 2020 485,369 61,324 546,694 4.3. Intangible Assets Purchased IT-software Advances paid for software Total Cost (in €) At January 1, 2019 246,351 109,852 356,204 Additions 84,449 251,493 335,942 Reclassification 353,155 (353,155) — Exchange differences (64) — (64) At December 31, 2019 683,891 8,190 692,081 Additions 28,075 — 28,075 Reclassification 8,190 (8,190) — Exchange differences (562) — (562) At December 31, 2020 719,593 — 719,593 Accumulated amortization At January 1, 2019 (133,337) — (133,337) Amortization charge for the year* (106,358) — (106,358) Exchange differences 14 — 14 At December 31, 2019 (239,681) — (239,681) Amortization charge for the year (129,963) — (129,963) Exchange differences 234 — 234 At December 31, 2020 (369,410) — (369,410) Net book value At December 31, 2019 444,210 8,190 452,400 At December 31, 2020 350,184 — 350,183 Amortization of intangible assets is included in the line items ‘research and development expenses’ (2020: €27,937, 2019: €30,662, 2018: €5,841) and ‘general and administrative expenses’ (2020: €102,026, 2019: €75,696, 2018: €19,414) in the consolidated statements of operations and comprehensive loss. 4.4. Leases 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 expire in the next 24 months: Jena, Germany in December 2022, Martinsried, Germany in May 2022 and Ann Arbor, United States in April 2021. Set out below, are the carrying amounts and the movements of the Group’s lease liabilities: Lease liabilities 2020 2019 As of January 1 845,948 730,672 Additions 101,993 636,754 Derecognition (20,555) (228,547) Re-payments (366,156) (296,020) Short-term liability for accrued interest expense (388) 1,362 Foreign exchange difference (1,802) 1,727 As of December 31 559,041 845,948 The following are the amounts recognized in profit or loss: 2020* 2019* 2018* (in €) Depreciation expense of right-of-use assets (see Note 4.2) 362,137 265,957 — Interest expense on lease liabilities 7,311 12,765 — Rental expense from leases 6,275 70,451 213,200 short-term leases (included in administrative expenses) 937 65,348 — leases of low-value assets (included in administrative expenses) 5,338 5,103 — Total amounts recognized in profit or loss 375,723 349,173 213,200 * in 2020 and 2019 leases under IFRS 16, in 2018 operating leases under IAS 17 The Group had total cash outflows for leases of €374,698 in 2020 (€378,035 in 2019, €213,200 in 2018 4.5. Other assets Other assets December 31, 2020 December 31, 2019 (in €) Non-current other assets Prepaid expense 353,522 452,217 Total 353,522 452,217 Current other assets Prepayments on research & development projects 2,340,643 698,891 Prepaid expense 1,295,682 1,467,936 Other 98,374 199,088 Total 3,734,699 2,365,915 Total other assets 4,088,221 2,818,132 Prepayments on research & development projects consists of prepayments on CRO and manufacturing contracts. Prepaid expense mainly consists of prepaid insurance expense. 4.6. Income tax 4.6..1. Income tax reconciliation The table below shows a reconciliation between the product of loss before tax multiplied by the Company's applicable tax rate and current income taxes recognized in profit or loss. InflaRx Group 2020 2019 2018 (in €) Loss for the period (accounting profit before income tax) (33,983,614) (53,254,817) (29,814,634) Tax rate 28.7% 29.6% 29.1% Tax benefits at tax rate 9,761,910 15,815,083 8,715,116 Tax losses for which no deferred tax asset was recognized (9,761,910) (15,815,083) (8,715,116) Income tax — — — The tax rate applied above represents the weighted average of the statutory tax rates in Germany and the USA. In Germany, InflaRx N.V. and its German subsidiary InflaRx GmbH are subject to corporate income tax (2020/2019/2018: 15%), a solidarity surcharge (2020/2019/2018: 0.8%) and trade taxes (2020: 13.0%, 2019: 13.9%, 2018: 13.4%). This equals an average total tax rate of 28.9% in 2020 (2019: 29.7%, 2018: 29.2%). InflaRx Pharmaceutical Inc., Ann Arbor, Michigan, USA is subject an average total tax rate of 27.0% in 2020 (2019 and 2018: 27.0%), which is made up of U.S. federal tax (2020, 2019, 2018: 21%) and state tax (2020, 2019, 2018: 6%). 4.6..2. Tax losses carried forward The Group has total tax loss carryforwards of €148.9 million (2019: €114.4 million) from three areas that cannot be utilized outside these areas: · As of December 31, 2020 the Group has €107,188,000 (2019: €75,767,524) of unrecognized and unused tax losses carried forward attributable to the tax group formed by InflaRx N.V. since 2018; these tax losses do not expire and may not be used to offset taxable income elsewhere in the Group. 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. · Tax losses of InflaRx GmbH until December 31, 2017 (€34,787,000) are frozen from 2018 onwards due to the tax group with InflaRx N.V. Those losses of InflaRx GmbH do not expire and may be used to offset future taxable income of InflaRx GmbH only. · In addition, the Group still has tax loss carryforwards of €6,971,000 (2019: 3,816,023) from the operations of InflaRx Pharmaceutical Inc. which can also only be utilized there, generally do not expire, but are generally limited to 80% of taxable income. As of December 31, 2020 and 2019, no deferred tax assets were recognized for the carryforward of unused tax losses. 4.6..3. Current income tax receivable Current income tax receivable includes tax claims because of income tax withheld on interest income earned by the Group on the financial assets (2020: €1,026,494, 2019: €1,134,968). The Company is reimbursed for the payments after filing a tax return. 4.7. Financial assets and financial liabilities Set out below is an overview of financial assets and liabilities, other than cash and short-term deposits included in cash equivalents, held by the Group as at December 31, 2020 and December 31, 2019: Financial assets and financial liabilities December 31, 2020 December 31, 2019 (in €) Financial assets at amortized cost Non-current financial assets 272,268 272,614 Current financial assets 47,138,738 82,353,867 Financial liabilities at amortized cost Trade and other payables 8,258,133 12,413,662 The fair value of current and non-current financial assets amounted to €47,392 thousand (level 1; 2019: €82,661 thousand). The Group’s financial assets at amortized cost consist mainly of quoted debt securities with fixed interest rates that are graded in the top investment category (AAA) by credit rating agencies such as S&P Global and, therefore, are considered low credit risk investments. The maturities of all securities as of December 31, 2020 are between three and eleven months (2019: between one and eleven months); they bear nominal fixed interest in the range of 1.4% to 3.1% (2019: 1.5% to 2.1%). 4.8. Cash and cash equivalents Cash and cash equivalents December 31, 2020 December 31, 2019 (in €) Short-term deposits Deposits held in U.S. dollars (3 months original maturity and less) 22,616,767 27,803,153 Deposits held in Euro (3 months original maturity and less) 1,800,000 — Total 24,416,767 27,803,153 Cash at banks Cash held in Euro 1,189,126 1,211,478 Cash held in U.S. dollars 362,788 4,116,649 Total 1,551,914 5,328,127 Total cash and cash equivalents 25,968,681 33,131,280 4.9. Equity 4.9..1. Issued capital As of December 31, 2020, the issued capital of the Company is divided into 28,228,415 common shares (2019: 26,105,255). The nominal value per share is €0.12. All shares issued are fully paid and have the same rights on the distribution of dividends and the repayment of capital. On July 8, 2020, the Company filed with the United States Securities and Exchange Commission (SEC) a Form F-3 with respect to the offer and sale of securities of the Company. The Company also filed with the SEC a prospectus supplement relating to an at-the-market program providing for the sales over time of up to $50 million of its common shares pursuant a Sales Agreement with SVB Leerink LLC. As of December 31, 2020, the Company had issued 1,958,186 common shares under this program resulting in €9.0 million in net proceeds to the Company. Following these issuances, the remaining value authorized for sale under the at-the-market program is $38.8 million. Refer to Note 7.4 regarding additional equity issuances subsequent to December 31, 2020. 4.9..2. Authorized capital 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 stakeholders has been removed or sufficiently mitigated or neutralized. The Company is 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. For the year ended December 31, 2020, the Company expensed €60,000 of ongoing costs to reimburse expenses incurred by the protective foundation. 4.9..3. Nature and purpose of equity reserves In addition to the issued capital, the Company discloses the following other reserves: · Share premium · The other capital reserves · Accumulated deficit · Other components of equity 4.10. Trade and other payables Trade and other Payables December 31, 2020 December 31, 2019 (in €) Accrued liabilities from R&D projects 5,250,654 8,274,042 Accounts payable 1,741,251 3,351,100 Other accrued liabilities and payables 1,266,228 788,520 Total trade and other payables 8,258,133 12,413,662 Accrued liabilities from R&D projects include the services from the Company’s ongoing projects that have not yet been invoiced to the Company as of the reporting date. |
Risk
Risk | 12 Months Ended |
Dec. 31, 2020 | |
Risk | |
Risk | 5.1. Financial risk management 5.1..1. Financial risk management objectives and policies The Group’s risk management is predominantly controlled by central treasury activities under an investment policy approved by the Board of Directors. Those treasury activities identify, evaluate and manage financial risks consistent 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). Hedging 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. The Group’s principal financial assets comprise quoted debt securities with credit ratings of AAA. Besides these financial assets, the Group has significant cash and cash equivalents. The Group’s principal financial liabilities comprise trade and other 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, current and non-current financial assets Credit rating Diversification of bank deposits, Investment guidelines for debt investments Liquidity R&D and G&A cost, equity, trade and other payables Rolling cash flow forecast Availability of funds through financing rounds or public offerings 5.1..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, follow-on public offering in 2018 and at-the-market program share issuances in 2020, the Group has a significant cash and cash equivalents in U.S. dollars. 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 2020, 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. dollar to 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 2020, if the Euro had weakened/strengthened by 10% against the U.S. dollar with all other variables held constant, the Group’s loss would have been €3 million higher/€3 million lower, mainly as a result of foreign exchange on translation of U.S. dollar-denominated assets of InflaRx GmbH. Cash, cash equivalents and financial assets denominated in USD of InflaRx GmbH December 31, 2020 December 31, 2019 (in €) (in €) Current financial assets (securities and accrued interest) 8,333,240 32,947,491 Cash and cash equivalents 22,530,687 4,123,532 Total assets exposed to the risk 30,863,927 37,071,023 Conversion rate EUR/USD at reporting date 1/1.2271 Conversion rate Profit/(loss) carrying amount (in €) Euro weakens against U.S. dollars 1.2500 (2,805,812) 28,058,115 Euro strengths against U.S. dollars 1.0500 3,429,325 34,293,252 Based on the exchange rate fluctuations from the last three years, the Company expects that exchange rate fluctuations of the Euro to the U.S. dollar between 1.0500 and 1.2500 could be reasonably possible. Compared to the exchange rate on the statement of financial position date (EUR/USD at reporting date is 1/1.2271), these rates could have a material impact on the Company’s total loss of the period. 5.1..3. Credit risk Credit risk is the risk that a counterparty will not meet its obligations leading to a financial loss for the Company. The Company is exposed to credit risk mainly from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. Credit risk from balances with banks and financial institutions is managed by the Company in accordance with the Company’s investment policy. Investment of financial resources which are currently not used to fund R&D or G&A activities, are made only with counterparties within the credit limits approved by the investment policy. For short-term investments in Euro or USD debt securities, a AAA credit rating is required. Only for short-term deposits in cash and cash equivalents with the Company’s principal banks, their lower credit ratings are accepted (credit ratings varying between A and BBB). Complex financial products as well as other investments denominated in currencies other than USD or Euro are not permitted by the investment policy. Counterparty credit limits and the investment policy are discussed with the Company’s Audit Committee on an annual basis and may be updated throughout the year subject to approval of the Company’s Audit Committee. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through a counterparty’s potential failure to make payments. The maximum exposure to counterparty credit risk is €81.4 million at December 31, 2020 (December 31, 2019: €115.8 million). This amount equals the carrying amount at year end of cash and cash equivalents (2020: €26.0 million; 2019: €33.1 million) and financial assets (2020: €55.4 million; 2019: €82.6 million). 5.1..4. Liquidity risk The Company monitors its risk of a shortage of funds in every quarterly forecast as well as on an ongoing basis. The Company disclosed the maturities of its principal liabilities under ‘6 Commitments’. Prudent liquidity risk management involves maintaining sufficient cash and marketable securities and the availability of funding to meet obligations when due. 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. The Company has a history of significant operating losses. Management expects that the Company incurs significant and increasing losses for the foreseeable future; as the Company may not achieve or maintain profitability in the near future, it is dependent on capital contributions or other funding. In November 2017, May 2018, and July/August 2020, the Group raised significant funding that it estimates will enable the Group to fund operating expenses and capital expenditure requirements for at least 24 months from December 31, 2020. 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. At the end of the reporting period, the Group held the following deposits that are expected to readily generate cash inflows to meet the outstanding financial commitments. Liquidity December 31, 2020 December 31, 2019 (in €) Short-term deposits 24,416,767 27,803,153 Cash at banks 1,551,914 5,328,127 Marketable Securities (current) 54,752,700 81,895,377 Other (non-current portion) 272,268 272,614 Other (current) 409,333 458,491 Total funds available 81,402,982 115,757,762 5.2. 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 liabilities, other than trade and other payables or leasing liabilities. No changes were made in the objectives, policies or processes for managing capital during the year. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2020 | |
Commitments | |
Commitments | 6.1. Operating contracts or services 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. These contracts can usually be terminated with 30 to 180 days' notice. In addition to this minimum duration, these contracts require full payment for services already commenced. During 2020, the Group did not enter contracts to purchase property, plant and equipment or patents and trademarks (respectively nil in 2019). 6.2. Lease obligations 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 346,000 7,485 338,516 After one year but not more than five years 231,715 11,190 220,525 More than five years — — — Total 577,715 18,675 559,040 Maturity analysis for all lease obligations in 2020 Total Low value leases Short-term leases Capitalized leases (in €) Within one year 352,261 6,261 — 346,000 After one year but not more than five years 249,199 17,484 — 231,715 More than five years — — — — Total 601,460 23,745 — 577,715 Anticipated future lease expenses were converted with the exchange rate as of December 31, 2020, 1 Euro = 1.2271 USD. The Group applies the ‘lease of low-value assets’ recognition exemptions. The Group also applied the ‘short-term lease’ exemption for leases with a maturity of less than 12 months. Maturity analysis for all lease obligations in 2019 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 Anticipated future lease expenses were converted with the exchange rate as of December 31, 2019, 1 Euro = 1.1234 USD. |
Other information
Other information | 12 Months Ended |
Dec. 31, 2020 | |
Other Information | |
Other information | 7.1. 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 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 2020, 2019 and 2018. The geographic location of the Group’s non-current assets are as follows: · December 31, 2020: €1,712 thousand in Germany and €219 thousand in the United States, · December 31, 2019: €2,217 thousand in Germany and €374 thousand in the United States. None of the non-current assets are in the country where the Company is incorporated (the Netherlands). 7.2. Related party transactions The compensation of the Group’s executive management comprises the following for the twelve months ending December 31: Board Compensation 2020 2019 2018 (in €) Executive Management Short-term employee benefits 1,995,292 2,793,529 2,524,202 Share-based payments 1,139,286 5,218,324 9,801,454 Total 3,134,578 8,011,853 12,325,656 Non-executive Board of Directors Short-term employee benefits 283,127 269,031 238,180 Share-based payments 69,938 710,611 1,085,917 Total 353,065 979,642 1,324,098 Total Compensation 3,487,643 8,991,495 13,649,754 Executive Management comprises Executive Directors of the Board and members from the C-Level of the Company. The table above discloses short-term employee benefits that were contractually agreed for the board and executive management. As of December 31, 2020, €1,152,416 were not paid but accrued (2019: €868,848) for executive management and €209,990 (2019: €103,040) for non-executive members of the Board of Directors. Remuneration of the Group’s executive management comprises fixed and variable components and share-based payment awards. In addition, executive management receive supplementary benefits and allowances. The Company entered into indemnification agreements with its directors and senior management. The indemnification agreements and the Company’s Articles of Association require the Company to indemnify its directors to the fullest extent permitted by law. The Company’s current and future directors (and such other officer or employee as designated by the board of directors) have the benefit of indemnification provisions in the Articles of Association of InflaRx N.V. These provisions give the indemnified persons the right to recover from us amounts, including, but not limited to, litigation expenses, and any damages they are ordered to pay, in relation to acts or omissions in the performance of their duties. However, there is no entitlement to indemnification for acts or omissions which are considered to constitute malice, gross negligence, intentional recklessness and/or serious culpability attributable to such indemnified person. These agreements also provide, subject to certain exceptions, for indemnification for related expenses including, among others, attorneys’ fees, judgements, penalties, fines and settlement amounts incurred by any of these individuals in any action or proceeding. In addition to such indemnification, the Company provides its directors with directors’ and officers’ liability insurance. 7.3. COVID-19 Pandemic The COVID-19 pandemic, which began in December 2019 has spread worldwide and continues to cause many governments to maintain measures to slow the spread of the outbreak through quarantines, travel restrictions, closure of borders and requiring maintenance of physical distance between individuals. Since the second quarter of 2020 the Company’s employees have been able to work from their home offices or return to the Company’s offices. The Company’s service providers also resumed full operations in the second quarter of 2020. As the Company is currently devoting significant resources to the development of a severe COVID-19 therapy, which is currently recruiting patients in the Phase III part of a randomized, double-blind, placebo-controlled Phase II/III study, such development may impair the ability to timely progress other product candidates in clinical trials. In addition, enrollment in other programs may be delayed as a result of the COVID-19 pandemic. However, the recruitment of patients and opening of new clinical trial sites continued in the third and fourth quarter of 2020. We have taken measures to counter the negative impact of the pandemic with respect to recruitment speed, including opening of additional sites in different countries. The rapid development and fluidity of the situation presents uncertainty and risk with respect to the Company, its performance and its financial results. 7.4. Significant events after the reporting date 7.4..1. At the Market Transaction - Offering of Common Shares Following December 31, 2020, the Company issued, under its at-the-market program (refer to Note 4 “Issued capital"), 610,022 common shares resulting in €2.8 million in net proceeds to the Company. Following these issuances, the remaining value authorized for sale under the Sales Agreement was $35.2 million. 7.4..2. Issue of common shares and accompanying warrants On February 25, 2021, the Company sold an aggregate of 15,000,000 common shares through a public offering. The common shares were sold at a price of $5.00 per share and have a nominal value of €0.12 per share. For each common share purchased, an investor also received a warrant to purchase a common share at an exercise price of $5.80. The warrants are exercisable immediately and have a term of up to one year. The shares were issued and the transaction closed on March 1, 2021 with gross offering proceeds to the Group from this offering being $75.0 million (€62.2 million), before deducting $4.5 million (€3.7 million) in underwriting discounts and other offering expenses of $0.5 million (€0.5 million) and excluding the exercise of any warrants. The aforementioned Euro amounts were calculated using the exchange rate as of March 1, 2021 (1 USD = 0.8297 EUR). |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies | |
New and amended standards adopted by the Group | The below listed amendments and interpretations apply for the first time in 2020, but do not have a material impact on the consolidated financial statements of the Group: · Conceptual Framework Amendments, References to the Conceptual Framework in IFRS Standards (IFRS 2 Share-Based Payment, IFRS 3 Business Combinations, IAS 1 Presentation of Financial Statements, IAS 8 Accounting Policies, IAS 34 Interim Financial Reporting, IAS 37 Provisions, Contingent Liabilities and Contingent Assets, IFRIC 12 Service Concession Arrangements, IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments IFRIC 22 Foreign Currency Transactions and Advance Consideration, SIC 32 Intangible Assets — Web Site Costs,), effective as of January 1, 2020 · IFRS 3 Business Combinations, Definition of a business, effective January 1, 2020 · IAS 39 Financial Instruments: Recognition and Measurement, IFRS 7 Financial Instruments Disclosures, IFRS 9 Financial Instruments, Interest Rate Benchmark Reform — Phase 1, effective January 1, 2020, · IAS 1 Presentation of Financial Statements, IAS 8 Accounting Policies, Definition of Material, as of January 1, 2020 |
New standards not yet adopted | The following amendments will be adopted effective January 1, 2021 and are not expected to have a material impact on the consolidated financial statements of the Group: · Interest Rate Benchmark Reform — Phase 2, Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 · COVID-19-related Rent Concessions, Amendment to IFRS 16 The following standards issued will be adopted in a future period and the potential impact, if any, they will have on the Group’s consolidated financial statements is being assessed: · Amendments to IFRS 4 Insurance Contracts · IFRS 17 Insurance Contracts, including Amendments to IFRS 17 · Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current and Classification of Liabilities as Current or Non-current · Amendments to IFRS 3 Business Combinations; IAS 16 Property, Plant and Equipment; IAS 37 Provisions, Contingent Liabilities and Contingent Assets; Annual Improvements 2018-2020 · Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting policies · Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates |
Current and non-current classification | The Group presents assets and liabilities in the statement of financial position based on current/non-current classification. Current assets include assets that are sold, consumed or realized as part of the normal operating cycle (operating cycle is assumed to be 12 months), or cash and cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current. Current liabilities, such as trade payables, lease liabilities or employee benefits with a term of up to 12 months, and payables for operating costs or social security charges, are part of the working capital used in the Company’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. All other liabilities are classified as non-current. |
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 a currency other than Euro (the presentation currency of the Company’s) are translated into Euros at the rate of exchange prevailing at the reporting date and their statements of operations 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, cash, and cash equivalents | The consolidated statements of cash flows have been prepared using the indirect method for cash flows from operating activities. The cash disclosed in the consolidated statements of cash flows is comprised of cash and cash equivalents. Cash comprises cash on hand and demand deposits. Cash equivalents are short-term bank deposits that are readily convertible to a known amount of cash 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 expenses | 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 the Company’s clinical drug product; additionally, costs are incurred for 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. Therefore, research expenditure and development expenditures are expensed when incurred. |
Employee benefits | 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 employee benefits in the consolidated statements of financial position. 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. 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 conditions are expected to be met, including an estimate of forfeitures, such that the amount ultimately recognized is based on the number of awards that meet the related service 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 gain or loss recognized for differences between expected and actual outcomes. |
Lease agreements | 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 collateral for borrowing purposes. The Group applied IFRS 16 Leases for the first time starting January 1, 2019, previous periods were not adjusted retrospectively. See Note 4.4 for the effect of this change on amounts recognized in profit or loss. 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 January 1, 2019, 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. Set forth below are the accounting policies of the Group applied under IFRS 16 after its first-time adoption effective January 1, 2019. 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. On December 31, 2020, the remaining useful lives of the Company’s right-of-use assets range between four and 33 months. 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 which 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, since 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. Determining the lease term of contracts 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. The Group further 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. The leases which currently also result in the capitalization of a right of use asset, do not include any renewal options. For future lease contracts with potential renewal options the Company applies judgement in evaluating whether it is reasonably certain to exercise the option to renew. In doing so, management would consider all relevant factors that create an economic incentive for it to exercise the renewal. |
Interest income | Interest income is derived from interest-bearing financial assets, including cash equivalents. Interest income on cash and cash equivalents, financial assets at amortized cost calculated using the effective interest rate method is recognized in the consolidated statements of operations and comprehensive 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 and accumulated impairment losses, if any. 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. |
Property and equipment | Laboratory and office equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items. All repairs and maintenance are recognized in profit or loss during the financial period in which they are incurred, because they do not constitute a separate asset. Depreciation on laboratory and office 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’ or ‘other expenses’ in the consolidated statements of operations and comprehensive loss. |
Financial assets and liabilities (financial instruments) | Definition 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 assets include predominantly quoted fixed-interest debt securities. The financial liabilities comprise trade and other payables (incl. accrued liabilities from the R&D projects). Criteria for the recognition and derecognition, initial measurement In general purchases or sales of financial assets are recognized on the settlement date, i.e., the date that the Group renders or receives the counter performance (typically cash). The Group initially measures a financial asset at its fair value plus transaction costs. The Group initially recognizes non-derivative financial liabilities on the date that they are originated at fair value net of directly attributable transaction costs. The Group derecognizes a financial liability when its contractual obligations are discharged, cancelled, or expire. Subsequent measurement method Considering the Group’s business model for managing the financial assets, whose objective is to hold them in order to collect contractual cash flows, and their contractual cash flow characteristics, that are solely payments of principal and interest on the principal amount outstanding, the Group classifies the quoted debt securities with fixed interest rates as subsequently measured at amortized cost using the effective interest method (EIR). The financial assets are also subject to impairment. The Group’s financial liabilities are classified as subsequently measured at amortized cost which is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of the EIR. An analysis of the carrying amounts from the consolidated statements of financial position by measurement category is disclosed under ‘under ‘4.7 Financial assets and financial liabilities.’ Criteria for realization of income and expenses Interest income is accrued using the relevant effective interest rate. Interest expense on liabilities, if any, is also accrued based on the effective interest rate. Gains and losses on the disposal of financial instruments are recognized in full when all significant risks and rewards have been transferred. In the case of a partial transfer of risks and rewards, a distinction would be made as to whether control remains with the company or is transferred. Impairment losses on financial assets are recognized in profit or loss. The Group recognizes an allowance for expected credit losses (ECLs) for the financial assets held, see Note ‘3.4 Net Financial Result’. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. ECLs are generally recognized in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). For the quoted debt securities with fixed interest rates, which have high credit ratings and no significant increases in credit risk since initial recognition, the Group determines the exposure to credit default using CDS pricing information (i.e. credit default swap values) published by credit agencies and recognizes a 12-month ECL. |
Fair value measurement | The Group does not measure any financial asset or liability at fair value. The carrying amount of all financial instruments approximates their fair value, with the exception of quoted debt securities which fair values are disclosed (see ‘4.7 Financial assets and financial liabilities’). When measuring the fair value of an asset or a liability, the Group would use 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 would recognize transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred. |
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 income tax Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. Expected tax payable or receivable on the taxable income or loss for the year, are calculated using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. In the periods presented; the Group did not incur income tax expense. Taxes withheld by banks and remitted to tax authorities were reimbursed after filing of the annual tax declaration. Deferred income tax 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 arising from tax loss carryforwards are recognized only to the extent that the Group has sufficient taxable temporary differences or there is convincing evidence that sufficient future taxable profit will be available against which the unused tax losses can be utilized. As of December 31, 2020 and 2019, based on management’s judgment, it was not probable that taxable profit will be available against which the unused tax losses can be utilized; no deferred tax assets were therefore recognized in the consolidated statements of financial position. |
Corporate information (Tables)
Corporate information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Corporate Information | |
Subsidiaries | Name Place of business/ country of incorporation Functional currency Ownership interest held by the Company 2020 2019 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 |
Consolidated statements of op_2
Consolidated statements of operations and comprehensive loss (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statement of comprehensive income [abstract] | |
Research and development expenses | Research and development expenses 2020 2019 2018 (in €) Third-party services 19,886,693 36,783,223 15,909,366 manufacturing of clinical material 3,075,347 13,479,235 4,828,534 clinical, pre-clinical 16,811,346 23,303,988 11,080,832 Employee benefits expenses 4,480,890 6,231,812 8,037,082 Equity-settled share-based payment expense 626,833 2,580,983 5,256,194 Legal and consulting fees 862,364 668,676 421,041 Other expenses 454,193 898,425 661,065 Total 25,684,140 44,582,136 25,028,554 |
General and administrative expenses | General and administrative expenses 2020 2019 2018 (in €) Employee benefits expenses 3,880,349 7,534,073 9,146,955 Equity-settled share-based payment expense 489,958 4,251,227 6,828,457 Legal and consulting fees 1,603,711 2,199,640 2,020,447 Insurance expenses 1,311,790 636,035 368,339 Depreciation & amortization expense 556,456 503,683 115,330 Compensation expense for non-executive board directors 283,128 269,030 238,180 Other expenses 831,769 1,358,587 897,618 Total 8,467,203 12,501,048 12,786,869 |
Employee benefits expenses | Employee benefits expenses 2020 2019 2018 (in €) Wages and salaries 6,270,757 5,974,807 4,501,840 Social Security contributions (employer's share) 551,804 562,255 350,024 Equity-settled share-based payment expenses (see Note 3.6 Share-based payments) 1,116,791 6,832,210 12,084,651 Other 421,887 396,613 247,522 Total 8,361,239 13,765,885 17,184,037 |
Net financial result | Finance Result 2020 2019 2018 (in €) Finance income Interest income 887,702 2,840,676 2,182,842 Finance expenses Interest expenses (18,689) (9,500) — Interest on lease liabilities (7,311) (12,765) — Total 861,702 2,818,411 2,182,842 |
Foreign exchange result | Foreign exchange result 2020 2019 2018 (in €) Foreign exchange result Foreign exchange income 3,656,922 3,379,644 8,249,853 Foreign exchange expense (4,433,435) (2,684,700) (2,623,782) Total (776,513) 694,944 5,626,071 |
Other financial result | 2020 2019 2018 (in €) Other financial result (126,000) — (107,182) |
Share-based payments | In the course of its historical financing rounds prior to 2016, InflaRx GmbH established equity-settled share-based payment programs. Those InflaRx GmbH options were converted into options for common shares of InflaRx N.V. in November 2017: 2020 Options 2020 WAEP* 2019 Options 2019 WAEP Outstanding at January 1 148,433 €0.01 289,309 €0.01 Exercised during the year (1) — — (140,876) €0.01 Outstanding at December 31 148,433 €0.01 148,433 €0.01 Exercisable at December 31 148,433 €0.01 148,433 €0.01 * Weighted average share price (WAEP) Under the terms and conditions of the share option plan of 2016 (the “2016 Plan”), InflaRx GmbH granted rights to subscribe for InflaRx GmbH’s common shares to directors, senior management, and key employees. Those InflaRx GmbH options were converted into options for common shares of InflaRx N.V. in November 2017: 2020 options 2020 WAEP* 2019 options 2019 WAEP* Outstanding at January 1 1,181,484 $3.35/€2.98 1,181,484 €7,81 Exercised during the year (1) (86,632) $3.35/€2.94 — — Outstanding at December 31 1,094,852 $3.35/€2.73 1,181,484 $3.35/€2.98 Exercisable at December 31 1,094,852 $3.35/€2.73 1,181,484 $3.35/€2.98 * conversion rates used for one €: December 31, 2020 $0.8149, average rate 2020 $0.8762, January 1, 2020/December 31, 2019 $0.8902, average rate 2019 $0.8932 In conjunction with the closing of its initial public offering, InflaRx N.V. established a new incentive plan (the “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: 2020 Options 2020 WAEP* 2019 Options 2019 WAEP* Outstanding at January 1 2,181,105 $3.44 /€3.06 2,051,009 $3.61/€3.16 Granted during the year 246,188 $4.83 /€4.23 242,450 $3.25/€2.91 Exercised during the year (78,342) $3.35 /€2.94 — — Forfeited during the year (202,473) $3.61 /€3.17 (112.354) $6.17/€5.51 Outstanding at December 31 2,146,478 $3.59 /€2.93 2,181,105 $3.44/€3.06 Exercisable at December 31 1,863,790 $3.46 /€2.82 1,319,548 $3.52/€3.13 * conversion rates used for one €: December 31, 2020 $0.8149, average rate 2020 $0.8762, January 1, 2020/December 31, 2019 $0.8902, average rate 2019 $0.8932 |
Fair value of stock options granted | Share options granted Options Fair value per option FX rate as of grant date Fair value per option Share price at grant date / Exercise price Expected volatility Expected life (midpoint based) Risk-free rate (interpolated, U.S. sovereign strips curve) 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 * Options granted to the executive management 2020 September 18 71,186 $4.16 0.85 €3.52 $4.83 1.35 4.8 0.36% September 18 25,002 $4.21 0.85 €3.56 $4.83 1.35 5.0 0.39% October 1 150,000 $3.69 0.85 €3.14 $4.28/$4.83 1.35 5.0 0.36% 246,188 |
Consolidated statements of fi_3
Consolidated statements of financial position (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statement of financial position [abstract] | |
Property, plant, and equipment | Property and equipment Advance payments Total Cost (in €) At January 1, 2019 995,179 — 995,179 Additions 259,647 54,338 313,985 Disposals (142,400) — (142,400) Reclassification 54,408 (54,408) — Exchange differences 6,639 70 6,709 At December 31, 2019 1,173,473 — 1,173,473 Additions 66,114 — 66,114 Disposals (5,298) — (5,298) Exchange differences (34,750) — (34,750) At December 31, 2020 1,199,540 — 1,199,540 Accumulated depreciation At January 1, 2019 (370,510) — (370,510) Depreciation charge for the year (252,627) — (252,627) Disposals 26,235 — 26,235 Exchange differences (198) — (198) At December 31, 2019 (597,101) — (597,101) Depreciation charge for the year (212,733) — (212,733) Disposals 1,793 — 1,793 Exchange differences 16,764 — 16,764 At December 31, 2020 (791,277) — (791,277) Net book value At December 31, 2019 576,372 — 576,372 At December 31, 2020 408,263 — 408,263 |
Right of use assets | Buildings Cars Total Cost (in €) At January 1, 2019 695,614 35,058 730,672 Additions 636,754 — 636,754 Disposals (266,057) — (266,057) Exchange differences 1,512 — 1,512 At December 31, 2019 1,067,823 35,058 1,102,881 Additions — 101,993 101,993 Disposals — (28,366) (28,366) Exchange differences (7,997) — (7,997) At December 31, 2020 1,059,826 108,685 1,168,512 Accumulated depreciation At January 1, 2019 — — — Depreciation charge for the year (283,350) (20,831) (304,181) Disposals 38,008 — 38,008 Exchange differences 216 — 216 At December 31, 2019 (245,126) (20,831) (265,957) Depreciation charge for the year (335,608) (34,410) (370,018) Disposals — 7,880 7,880 Exchange differences 6,277 — 6,277 At December 31, 2020 (574,457) (47,361) (621,818) Net book value At December 31, 2019 822,697 14,227 836,924 At December 31, 2020 485,369 61,324 546,694 |
Intangible assets | Purchased IT-software Advances paid for software Total Cost (in €) At January 1, 2019 246,351 109,852 356,204 Additions 84,449 251,493 335,942 Reclassification 353,155 (353,155) — Exchange differences (64) — (64) At December 31, 2019 683,891 8,190 692,081 Additions 28,075 — 28,075 Reclassification 8,190 (8,190) — Exchange differences (562) — (562) At December 31, 2020 719,593 — 719,593 Accumulated amortization At January 1, 2019 (133,337) — (133,337) Amortization charge for the year* (106,358) — (106,358) Exchange differences 14 — 14 At December 31, 2019 (239,681) — (239,681) Amortization charge for the year (129,963) — (129,963) Exchange differences 234 — 234 At December 31, 2020 (369,410) — (369,410) Net book value At December 31, 2019 444,210 8,190 452,400 At December 31, 2020 350,184 — 350,183 |
Lease liabilities | Lease liabilities 2020 2019 As of January 1 845,948 730,672 Additions 101,993 636,754 Derecognition (20,555) (228,547) Re-payments (366,156) (296,020) Short-term liability for accrued interest expense (388) 1,362 Foreign exchange difference (1,802) 1,727 As of December 31 559,041 845,948 |
Amounts recognized in profit or loss | 2020* 2019* 2018* (in €) Depreciation expense of right-of-use assets (see Note 4.2) 362,137 265,957 — Interest expense on lease liabilities 7,311 12,765 — Rental expense from leases 6,275 70,451 213,200 short-term leases (included in administrative expenses) 937 65,348 — leases of low-value assets (included in administrative expenses) 5,338 5,103 — Total amounts recognized in profit or loss 375,723 349,173 213,200 * in 2020 and 2019 leases under IFRS 16, in 2018 operating leases under IAS 17 |
Other assets | Other assets December 31, 2020 December 31, 2019 (in €) Non-current other assets Prepaid expense 353,522 452,217 Total 353,522 452,217 Current other assets Prepayments on research & development projects 2,340,643 698,891 Prepaid expense 1,295,682 1,467,936 Other 98,374 199,088 Total 3,734,699 2,365,915 Total other assets 4,088,221 2,818,132 |
Income taxes | InflaRx Group 2020 2019 2018 (in €) Loss for the period (accounting profit before income tax) (33,983,614) (53,254,817) (29,814,634) Tax rate 28.7% 29.6% 29.1% Tax benefits at tax rate 9,761,910 15,815,083 8,715,116 Tax losses for which no deferred tax asset was recognized (9,761,910) (15,815,083) (8,715,116) Income tax — — — |
Financial assets and financial liabilities | Financial assets and financial liabilities December 31, 2020 December 31, 2019 (in €) Financial assets at amortized cost Non-current financial assets 272,268 272,614 Current financial assets 47,138,738 82,353,867 Financial liabilities at amortized cost Trade and other payables 8,258,133 12,413,662 |
Cash and cash equivalents | Cash and cash equivalents December 31, 2020 December 31, 2019 (in €) Short-term deposits Deposits held in U.S. dollars (3 months original maturity and less) 22,616,767 27,803,153 Deposits held in Euro (3 months original maturity and less) 1,800,000 — Total 24,416,767 27,803,153 Cash at banks Cash held in Euro 1,189,126 1,211,478 Cash held in U.S. dollars 362,788 4,116,649 Total 1,551,914 5,328,127 Total cash and cash equivalents 25,968,681 33,131,280 |
Trade and other payables | Trade and other Payables December 31, 2020 December 31, 2019 (in €) Accrued liabilities from R&D projects 5,250,654 8,274,042 Accounts payable 1,741,251 3,351,100 Other accrued liabilities and payables 1,266,228 788,520 Total trade and other payables 8,258,133 12,413,662 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments | |
Maturity analysis for capitalized leases | Maturity analysis for capitalized leases Contractual minimum lease obligations Effect of discounting Lease liabilities (in €) Within one year 346,000 7,485 338,516 After one year but not more than five years 231,715 11,190 220,525 More than five years — — — Total 577,715 18,675 559,040 |
Maturity analsis for all lease obligations | Maturity analysis for all lease obligations in 2020 Total Low value leases Short-term leases Capitalized leases (in €) Within one year 352,261 6,261 — 346,000 After one year but not more than five years 249,199 17,484 — 231,715 More than five years — — — — Total 601,460 23,745 — 577,715 Maturity analysis for all lease obligations in 2019 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 |
Other information (Tables)
Other information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Information | |
Compensation of executive management | Board Compensation 2020 2019 2018 (in €) Executive Management Short-term employee benefits 1,995,292 2,793,529 2,524,202 Share-based payments 1,139,286 5,218,324 9,801,454 Total 3,134,578 8,011,853 12,325,656 Non-executive Board of Directors Short-term employee benefits 283,127 269,031 238,180 Share-based payments 69,938 710,611 1,085,917 Total 353,065 979,642 1,324,098 Total Compensation 3,487,643 8,991,495 13,649,754 |
Corporate information (Details)
Corporate information (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
InflaRx GmbH | ||
Disclosure of subsidiaries [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. | ||
Disclosure of subsidiaries [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 |
Significant accounting polici_3
Significant accounting policies (Details Narrative) - EUR (€) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
DisclosureOfSignificantAccountingPoliciesLineItems [Line Items] | ||
Trade and other payables | € 8,258,133 | € 12,413,662 |
Prepayments | 2,340,643 | 698,891 |
Accrued Liabilities from R&D Projects | ||
DisclosureOfSignificantAccountingPoliciesLineItems [Line Items] | ||
Trade and other payables | € 5,250,654 | € 8,274,042 |
Laboratory Equipment | ||
DisclosureOfSignificantAccountingPoliciesLineItems [Line Items] | ||
Estimated useful lives | 3 to 13 years | |
Office Equipment | ||
DisclosureOfSignificantAccountingPoliciesLineItems [Line Items] | ||
Estimated useful lives | 1 to 5 years |
Consolidated statements of op_3
Consolidated statements of operations and comprehensive loss (Details) - EUR (€) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Research and development expenses | € 25,684,140 | € 44,582,136 | € 25,028,554 |
Third-Party Services | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Research and development expenses | 19,886,693 | 36,783,223 | 15,909,366 |
Manufacturing of Clinical Material | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Research and development expenses | 3,075,347 | 13,479,235 | 4,828,534 |
Clinical, Pre-Clinical | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Research and development expenses | 16,811,346 | 23,303,988 | 11,080,832 |
Employee Benefits Expenses | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Research and development expenses | 4,480,890 | 6,231,812 | 8,037,082 |
Equity-Settled Share-Based Payment Expenses | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Research and development expenses | 626,833 | 2,580,983 | 5,256,194 |
Legal and Consulting Fees | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Research and development expenses | 862,364 | 668,676 | 421,041 |
Other Expenses | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Research and development expenses | € 454,193 | € 898,425 | € 661,065 |
Consolidated statements of op_4
Consolidated statements of operations and comprehensive loss (Details 1) - EUR (€) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
General and administrative expenses | € 8,467,203 | € 12,501,048 | € 12,786,869 |
Employee Benefits Expenses | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
General and administrative expenses | 3,880,349 | 7,534,073 | 9,146,955 |
Equity-Settled Share-Based Payment Expenses | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
General and administrative expenses | 489,958 | 4,251,227 | 6,828,457 |
Legal and Consulting Fees | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
General and administrative expenses | 1,603,711 | 2,199,640 | 2,020,447 |
Insurance Expenses | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
General and administrative expenses | 1,311,790 | 636,035 | 368,339 |
Depreciation & Amortization Expense | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
General and administrative expenses | 556,456 | 503,683 | 115,330 |
Compensation Expense for Non-Executive Board Directors | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
General and administrative expenses | 283,128 | 269,030 | 238,180 |
Other Expenses | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
General and administrative expenses | € 831,769 | € 1,358,587 | € 897,618 |
Consolidated statements of op_5
Consolidated statements of operations and comprehensive loss (Details 2) - EUR (€) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Employee benefits | € 8,361,239 | € 13,765,885 | € 17,184,037 |
Wages and Salaries | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Employee benefits | 6,270,757 | 5,974,807 | 4,501,840 |
Social Security Contributions | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Employee benefits | 551,804 | 562,255 | 350,024 |
Equity-Settled Share-Based Payment Expenses | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Employee benefits | 1,116,791 | 6,832,210 | 12,084,651 |
Other Expenses | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Employee benefits | € 421,887 | € 396,613 | € 247,522 |
Consolidated statements of op_6
Consolidated statements of operations and comprehensive loss (Details 3) - EUR (€) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Finance income | € 887,702 | € 2,840,676 | € 2,182,842 |
Finance costs | (26,000) | (22,265) | 0 |
Net financial result | 861,702 | 2,818,411 | 2,182,842 |
Interest Expense | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Finance costs | (18,689) | (9,500) | 0 |
Interest on Lease Liabilities | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Finance costs | (7,311) | (12,765) | 0 |
Interest Income | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Finance income | € 887,702 | € 2,840,676 | € 2,182,842 |
Consolidated statements of op_7
Consolidated statements of operations and comprehensive loss (Details 4) - EUR (€) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Foreign exchange result | € (776,512) | € 694,944 | € 5,626,071 |
Foreign Exchange Expense | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Foreign exchange result | (4,433,435) | (2,684,700) | (2,623,782) |
Foreign Exchange Income | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Foreign exchange result | € 3,656,922 | € 3,379,644 | € 8,249,853 |
Consolidated statements of op_8
Consolidated statements of operations and comprehensive loss (Details 5) - EUR (€) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of comprehensive income [abstract] | |||
Other financial result | € (126,000) | € 0 | € (107,182) |
Consolidated statements of op_9
Consolidated statements of operations and comprehensive loss (Details 6) | 12 Months Ended | ||
Dec. 31, 2020shares€ / shares | Dec. 31, 2019shares€ / shares | ||
Equity Settled Share-Based Payment Programs | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Outstanding, beginning | shares | 148,433 | 289,309 | |
Exercised | shares | 0 | (140,876) | |
Outstanding, ending | shares | 148,433 | 148,433 | |
Exercisable | shares | 148,433 | 148,433 | |
Outstanding, beginning | € / shares | [1] | € 0.01 | € 0.01 |
Exercised | € / shares | [1] | .00 | 0.01 |
Outstanding, ending | € / shares | [1] | 0.01 | 0.01 |
Exercisable | € / shares | [1] | € 0.01 | € 0.01 |
2016 Plan | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Outstanding, beginning | shares | 1,181,484 | 1,181,484 | |
Exercised | shares | (86,632) | 0 | |
Outstanding, ending | shares | 1,094,852 | 1,181,484 | |
Exercisable | shares | 1,094,852 | 1,181,484 | |
Outstanding, beginning | € / shares | [2] | € 2.98 | € 7.81 |
Exercised | € / shares | [2] | 2.94 | .00 |
Outstanding, ending | € / shares | [2] | 2.73 | 2.98 |
Exercisable | € / shares | [2] | € 2.73 | € 2.98 |
2017 Long-Term Incentive Plan | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Outstanding, beginning | shares | 2,181,105 | 2,051,009 | |
Granted | shares | 246,188 | 242,450 | |
Exercised | shares | (78,342) | 0 | |
Forfeited | shares | (202,473) | (112,354) | |
Outstanding, ending | shares | 2,146,478 | 2,181,105 | |
Exercisable | shares | 1,863,790 | 1,319,548 | |
Outstanding, beginning | € / shares | [2] | € 3.06 | € 3.16 |
Granted | € / shares | [2] | 4.23 | 2.91 |
Exercised | € / shares | [2] | 2.94 | .00 |
Forfeited | € / shares | [2] | 3.17 | 5.51 |
Outstanding, ending | € / shares | [2] | 2.93 | 3.06 |
Exercisable | € / shares | [2] | € 2.82 | € 3.13 |
[1] | Weighted average share price (WAEP). | ||
[2] | Conversion rates used for one Euro: December 31, 2020 $0.8149, average rate 2020 $0.8762, January 1, 2020/December 31, 2019 $0.8902, average rate 2019 $0.8932. |
Consolidated statements of o_10
Consolidated statements of operations and comprehensive loss (Details 7) | 12 Months Ended | ||
Dec. 31, 2020€ / shares€ / $$ / sharesyrshares | Dec. 31, 2019€ / shares€ / $$ / sharesyrshares | ||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Number of share options | shares | 246,188 | 242,450 | |
September 18 | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Number of share options | shares | 71,186 | ||
Fair value at grant date Per option (USD) | 4.16 | ||
Fair value at grant date FX rate as of grant date | € / $ | .85 | ||
Fair value at grant date Per option (EUR) | € / shares | 3.52 | ||
Share price at grant date (USD) | $ 4.83 | ||
Expected volatility | 135.00% | ||
Expected life (midpoint based) | yr | 4.8 | ||
Risk-free rate (interpolated, U.S. sovereign strips curve) | 0.36% | ||
September 18 | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Number of share options | shares | 25,002 | ||
Fair value at grant date Per option (USD) | 4.21 | ||
Fair value at grant date FX rate as of grant date | € / $ | .85 | ||
Fair value at grant date Per option (EUR) | € / shares | 3.56 | ||
Share price at grant date (USD) | $ 4.83 | ||
Expected volatility | 135.00% | ||
Expected life (midpoint based) | yr | 5 | ||
Risk-free rate (interpolated, U.S. sovereign strips curve) | 0.39% | ||
October 1 | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Number of share options | shares | 150,000 | ||
Fair value at grant date Per option (USD) | 3.69 | ||
Fair value at grant date FX rate as of grant date | € / $ | .85 | ||
Fair value at grant date Per option (EUR) | € / shares | 3.14 | ||
Expected volatility | 135.00% | ||
Expected life (midpoint based) | yr | 5 | ||
Risk-free rate (interpolated, U.S. sovereign strips curve) | 0.36% | ||
October 1 | Minimum | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Share price at grant date (USD) | $ 4.28 | ||
October 1 | Maximum | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Share price at grant date (USD) | $ 4.83 | ||
January 1 | |||
CondensedStatementOfComprehensiveIncomeLineItems [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 | € / $ | 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 | 4.80 | ||
Risk-free rate (interpolated, U.S. sovereign strips curve) | 3.00% | ||
February 4 | |||
CondensedStatementOfComprehensiveIncomeLineItems [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 | € / $ | 0.87 | ||
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 | 4.90 | ||
Risk-free rate (interpolated, U.S. sovereign strips curve) | 2.60% | ||
May 14 | |||
CondensedStatementOfComprehensiveIncomeLineItems [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 | € / $ | 0.89 | ||
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 | 4.70 | ||
Risk-free rate (interpolated, U.S. sovereign strips curve) | 2.30% | ||
Repricing, July 3 | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Number of share options | shares | 0 | ||
Fair value at grant date FX rate as of grant date | € / $ | 0.89 | ||
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 | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Fair value at grant date Per option (USD) | 0.46 | ||
Fair value at grant date Per option (EUR) | € / shares | 0.40 | ||
Expected life (midpoint based) | yr | 2.30 | ||
Repricing, July 3 | Maximum | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Fair value at grant date Per option (USD) | 1.08 | ||
Fair value at grant date Per option (EUR) | € / shares | 0.96 | ||
Expected life (midpoint based) | yr | 4.60 | ||
October 24 | |||
CondensedStatementOfComprehensiveIncomeLineItems [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 | € / $ | 0.90 | ||
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 | 4.70 | ||
Risk-free rate (interpolated, U.S. sovereign strips curve) | 1.65% | ||
December 16 | |||
CondensedStatementOfComprehensiveIncomeLineItems [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 | € / $ | 0.90 | ||
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 | 4.70 | ||
Risk-free rate (interpolated, U.S. sovereign strips curve) | 1.79% | ||
December 16 | |||
CondensedStatementOfComprehensiveIncomeLineItems [Line Items] | |||
Number of share options | shares | [1] | 100,000 | |
Fair value at grant date Per option (USD) | 3.07 | ||
Fair value at grant date FX rate as of grant date | € / $ | 0.90 | ||
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 | 4.70 | ||
Risk-free rate (interpolated, U.S. sovereign strips curve) | 1.79% | ||
[1] | Options granted to the executive management. |
Consolidated statements of o_11
Consolidated statements of operations and comprehensive loss (Details Narrative) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of comprehensive income [abstract] | |||
Weighted average number of shares outstanding | 27,064,902 | 26,004,519 | 25,095,027 |
Consolidated statements of fi_4
Consolidated statements of financial position (Details) - EUR (€) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
CondensedBalanceSheetStatementLineItems [Line Items] | |||
Net book value | [1] | € 408,263 | € 576,373 |
Cost | |||
CondensedBalanceSheetStatementLineItems [Line Items] | |||
Balance, beginning | 1,173,473 | 995,179 | |
Additions | 66,114 | 313,985 | |
Disposals | (5,298) | (142,400) | |
Reclassification | 0 | ||
Exchange differences | (34,750) | 6,709 | |
Balance, ending | 1,199,540 | 1,173,473 | |
Depreciation | |||
CondensedBalanceSheetStatementLineItems [Line Items] | |||
Balance, beginning | (597,101) | (370,510) | |
Depreciation charge for the year | (212,733) | (252,627) | |
Disposals | 1,793 | 26,235 | |
Exchange differences | 16,764 | (198) | |
Balance, ending | (791,277) | (597,101) | |
Property and Equipment | |||
CondensedBalanceSheetStatementLineItems [Line Items] | |||
Net book value | 408,263 | 576,372 | |
Property and Equipment | Cost | |||
CondensedBalanceSheetStatementLineItems [Line Items] | |||
Balance, beginning | 1,173,473 | 995,179 | |
Additions | 66,114 | 259,647 | |
Disposals | (5,298) | (142,400) | |
Reclassification | 54,408 | ||
Exchange differences | (34,750) | 6,639 | |
Balance, ending | 1,199,540 | 1,173,473 | |
Property and Equipment | Depreciation | |||
CondensedBalanceSheetStatementLineItems [Line Items] | |||
Balance, beginning | (597,101) | (370,510) | |
Depreciation charge for the year | (212,733) | (252,627) | |
Disposals | 1,793 | 26,235 | |
Exchange differences | 16,764 | (198) | |
Balance, ending | (791,277) | (597,101) | |
Advance Payments | |||
CondensedBalanceSheetStatementLineItems [Line Items] | |||
Net book value | 0 | 0 | |
Advance Payments | Cost | |||
CondensedBalanceSheetStatementLineItems [Line Items] | |||
Balance, beginning | 0 | 0 | |
Additions | 0 | 54,338 | |
Disposals | 0 | 0 | |
Reclassification | (54,408) | ||
Exchange differences | 0 | 70 | |
Balance, ending | 0 | 0 | |
Advance Payments | Depreciation | |||
CondensedBalanceSheetStatementLineItems [Line Items] | |||
Balance, beginning | 0 | 0 | |
Depreciation charge for the year | 0 | 0 | |
Disposals | 0 | 0 | |
Exchange differences | 0 | 0 | |
Balance, ending | € 0 | € 0 | |
[1] | Please refer to Note 2.1 regarding certain presentational reclassifications. |
Consolidated statements of fi_5
Consolidated statements of financial position (Details 1) - EUR (€) | 12 Months Ended | ||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||
CondensedBalanceSheetStatementLineItems [Line Items] | |||||||
Depreciation charge for the year | € 362,137 | [1] | € 265,957 | [2] | € 0 | [2] | |
Net book value | [3] | 546,694 | 836,924 | ||||
Cost | |||||||
CondensedBalanceSheetStatementLineItems [Line Items] | |||||||
Balance, beginning | 1,102,881 | 730,672 | |||||
Additions | 101,993 | 636,754 | |||||
Disposals | (28,366) | (266,057) | |||||
Exchange differences | (7,997) | 1,512 | |||||
Balance, ending | 1,168,512 | 1,102,881 | 730,672 | ||||
Depreciation | |||||||
CondensedBalanceSheetStatementLineItems [Line Items] | |||||||
Balance, beginning | (265,957) | 0 | |||||
Depreciation charge for the year | (370,018) | (304,181) | |||||
Disposals | 7,880 | 38,008 | |||||
Exchange differences | 6,277 | 216 | |||||
Balance, ending | (621,818) | (265,957) | 0 | ||||
Buildings | |||||||
CondensedBalanceSheetStatementLineItems [Line Items] | |||||||
Net book value | 485,369 | 822,697 | |||||
Buildings | Cost | |||||||
CondensedBalanceSheetStatementLineItems [Line Items] | |||||||
Balance, beginning | 1,067,823 | 695,614 | |||||
Additions | 0 | 636,754 | |||||
Disposals | 0 | (266,057) | |||||
Exchange differences | (7,997) | 1,512 | |||||
Balance, ending | 1,059,826 | 1,067,823 | 695,614 | ||||
Buildings | Depreciation | |||||||
CondensedBalanceSheetStatementLineItems [Line Items] | |||||||
Balance, beginning | (245,126) | 0 | |||||
Depreciation charge for the year | (335,608) | (283,350) | |||||
Disposals | 0 | 38,008 | |||||
Exchange differences | 6,277 | 216 | |||||
Balance, ending | (574,457) | (245,126) | 0 | ||||
Cars | |||||||
CondensedBalanceSheetStatementLineItems [Line Items] | |||||||
Net book value | 61,324 | 14,227 | |||||
Cars | Cost | |||||||
CondensedBalanceSheetStatementLineItems [Line Items] | |||||||
Balance, beginning | 35,058 | 35,058 | |||||
Additions | 101,993 | 0 | |||||
Disposals | (28,366) | 0 | |||||
Exchange differences | 0 | 0 | |||||
Balance, ending | 108,685 | 35,058 | 35,058 | ||||
Cars | Depreciation | |||||||
CondensedBalanceSheetStatementLineItems [Line Items] | |||||||
Balance, beginning | (20,831) | 0 | |||||
Depreciation charge for the year | (34,410) | (20,831) | |||||
Disposals | 7,880 | 0 | |||||
Exchange differences | 0 | 0 | |||||
Balance, ending | € (47,361) | € (20,831) | € 0 | ||||
[1] | Conversion rates used for one Euro: December 31, 2020 $0.8149, average rate 2020 $0.8762, January 1, 2020/December 31, 2019 $0.8902, average rate 2019 $0.8932. | ||||||
[2] | In 2020 and 2019 leases under IFRS 16, in 2018 operating leases under IAS 17. | ||||||
[3] | Please refer to Note 2.1 regarding certain presentational reclassifications. |
Consolidated statements of fi_6
Consolidated statements of financial position (Details 2) - EUR (€) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
CondensedBalanceSheetStatementLineItems [Line Items] | ||
Net book value | € 350,183 | € 452,400 |
Cost | ||
CondensedBalanceSheetStatementLineItems [Line Items] | ||
Balance, beginning | 692,081 | 356,204 |
Additions | 28,075 | 335,942 |
Reclassifications | 0 | 0 |
Exchange differences | (562) | (64) |
Balance, ending | 719,593 | 692,081 |
Amortization | ||
CondensedBalanceSheetStatementLineItems [Line Items] | ||
Balance, beginning | (239,681) | (133,337) |
Amortization charge for the year | (129,963) | (106,358) |
Exchange differences | 234 | 14 |
Balance, ending | (369,410) | (239,681) |
Purchased IT Software | ||
CondensedBalanceSheetStatementLineItems [Line Items] | ||
Net book value | 350,184 | 444,210 |
Purchased IT Software | Cost | ||
CondensedBalanceSheetStatementLineItems [Line Items] | ||
Balance, beginning | 683,891 | 246,351 |
Additions | 28,075 | 84,449 |
Reclassifications | 8,190 | 353,155 |
Exchange differences | (562) | (64) |
Balance, ending | 719,593 | 683,891 |
Purchased IT Software | Amortization | ||
CondensedBalanceSheetStatementLineItems [Line Items] | ||
Balance, beginning | (239,681) | (133,337) |
Amortization charge for the year | (129,963) | (106,358) |
Exchange differences | 234 | 14 |
Balance, ending | (369,410) | (239,681) |
Advances Paid for Software | ||
CondensedBalanceSheetStatementLineItems [Line Items] | ||
Net book value | 0 | 8,190 |
Advances Paid for Software | Cost | ||
CondensedBalanceSheetStatementLineItems [Line Items] | ||
Balance, beginning | 8,190 | 109,852 |
Additions | 0 | 251,493 |
Reclassifications | (8,190) | (353,155) |
Exchange differences | 0 | 0 |
Balance, ending | 0 | 8,190 |
Advances Paid for Software | Amortization | ||
CondensedBalanceSheetStatementLineItems [Line Items] | ||
Balance, beginning | 0 | 0 |
Amortization charge for the year | 0 | 0 |
Exchange differences | 0 | 0 |
Balance, ending | € 0 | € 0 |
Consolidated statements of fi_7
Consolidated statements of financial position (Details 3) - EUR (€) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of financial position [abstract] | ||
Lease liabilities, beginning | € 845,948 | € 730,672 |
Additions | 101,993 | 636,754 |
Derecognition | (20,555) | (228,547) |
Re-payments | (366,156) | (296,020) |
Short-term liability for accrued interest expense | (388) | 1,362 |
Foreign exchange difference | (1,802) | 1,727 |
Lease liabilities, ending | € 559,041 | € 845,948 |
Consolidated statements of fi_8
Consolidated statements of financial position (Details 4) - EUR (€) | 12 Months Ended | |||||
Dec. 31, 2020 | [1] | Dec. 31, 2019 | [2] | Dec. 31, 2018 | [2] | |
Statement of financial position [abstract] | ||||||
Depreciation expense of right-of-use-assets | € 362,137 | € 265,957 | € 0 | |||
Interest expense on lease liabilities | 7,311 | 12,765 | 0 | |||
Rental expense from leases | 6,275 | 70,451 | 213,200 | |||
Short-term leases (included in administrative expenses) | 937 | 65,348 | 0 | |||
Lease of low value assets (included in administrative expenses) | 5,338 | 5,103 | 0 | |||
Total amounts recognized in profit or loss | € 375,723 | € 349,173 | € 213,200 | |||
[1] | Conversion rates used for one Euro: December 31, 2020 $0.8149, average rate 2020 $0.8762, January 1, 2020/December 31, 2019 $0.8902, average rate 2019 $0.8932. | |||||
[2] | In 2020 and 2019 leases under IFRS 16, in 2018 operating leases under IAS 17. |
Consolidated statements of fi_9
Consolidated statements of financial position (Details 5) - EUR (€) | Dec. 31, 2020 | Dec. 31, 2019 | |
CondensedBalanceSheetStatementLineItems [Line Items] | |||
Non-current other assets | € 353,522 | € 452,217 | |
Current other assets | [1] | 3,734,700 | 2,365,916 |
Total other assets | 4,088,221 | 2,818,132 | |
Prepayments on Research & Development Projects | |||
CondensedBalanceSheetStatementLineItems [Line Items] | |||
Current other assets | 2,340,643 | 698,891 | |
Prepaid Expense | |||
CondensedBalanceSheetStatementLineItems [Line Items] | |||
Non-current other assets | 353,522 | 452,217 | |
Current other assets | 1,295,682 | 1,467,936 | |
Others | |||
CondensedBalanceSheetStatementLineItems [Line Items] | |||
Current other assets | € 98,374 | € 199,088 | |
[1] | Please refer to Note 2.1 regarding certain presentational reclassifications. |
Consolidated statements of f_10
Consolidated statements of financial position (Details 6) - EUR (€) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of financial position [abstract] | |||
Loss for the period (accounting profit before income tax) | € (33,983,614) | € (53,254,817) | € (29,814,634) |
Tax rate | 28.70% | 29.60% | 29.10% |
Tax benefits at tax rate | € 9,761,910 | € 15,815,083 | € 8,715,116 |
Tax losses for which no deferred income tax asset was recognized | (9,761,910) | (15,815,083) | (8,715,116) |
Income tax | € 0 | € 0 | € 0 |
Consolidated statements of f_11
Consolidated statements of financial position (Details 7) - EUR (€) | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of financial position [abstract] | ||
Non-current financial assets | € 272,268 | € 272,614 |
Current financial assets | 47,138,738 | 82,353,867 |
Trade and other payables | € 8,258,133 | € 12,413,662 |
Consolidated statements of f_12
Consolidated statements of financial position (Details 8) - EUR (€) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
CondensedBalanceSheetStatementLineItems [Line Items] | ||||
Short-term deposits | € 24,416,767 | € 27,803,153 | ||
Cash at banks | 1,551,914 | 5,328,127 | ||
Total cash and cash equivalents | 25,968,681 | 33,131,280 | € 55,386,240 | € 123,281,888 |
U.S. Dollars | ||||
CondensedBalanceSheetStatementLineItems [Line Items] | ||||
Short-term deposits | 22,616,767 | 27,803,153 | ||
Cash at banks | 362,788 | 4,116,649 | ||
Euro | ||||
CondensedBalanceSheetStatementLineItems [Line Items] | ||||
Short-term deposits | 1,800,000 | 0 | ||
Cash at banks | € 1,189,126 | € 1,211,478 |
Consolidated statements of f_13
Consolidated statements of financial position (Details 9) - EUR (€) | Dec. 31, 2020 | Dec. 31, 2019 |
CondensedBalanceSheetStatementLineItems [Line Items] | ||
Trade and other payables | € 8,258,133 | € 12,413,662 |
Accrued Liabilities from R&D Projects | ||
CondensedBalanceSheetStatementLineItems [Line Items] | ||
Trade and other payables | 5,250,654 | 8,274,042 |
Accounts Payable | ||
CondensedBalanceSheetStatementLineItems [Line Items] | ||
Trade and other payables | 1,741,251 | 3,351,100 |
Other Accrued Liabilities and Payables | ||
CondensedBalanceSheetStatementLineItems [Line Items] | ||
Trade and other payables | € 1,266,228 | € 788,520 |
Consolidated statements of f_14
Consolidated statements of financial position (Details Narrative) - EUR (€) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CondensedBalanceSheetStatementLineItems [Line Items] | |||
Cash outflows for leases | € 374,698 | € 378,035 | € 213,200 |
Tax loss carryforwards | 148,900,000 | 114,400,000 | |
Income tax receivable | 1,026,494 | 1,134,968 | |
Research and Development | |||
CondensedBalanceSheetStatementLineItems [Line Items] | |||
Amortization of intangible assets | 27,937 | 30,662 | 5,841 |
General and Administrative | |||
CondensedBalanceSheetStatementLineItems [Line Items] | |||
Amortization of intangible assets | € 102,026 | € 75,696 | € 19,414 |
Risk (Details)
Risk (Details) | 12 Months Ended |
Dec. 31, 2020 | |
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, current and non-current financial assets |
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, equity, trade and other payables |
Measurement | Rolling cash flow forecast |
Risk management | Availability of funds through financing rounds or public offerings |
Risk (Details 1)
Risk (Details 1) - EUR (€) | Dec. 31, 2020 | Dec. 31, 2019 |
Risk | ||
Current financial assets (securities and accrued interest) | € 8,333,240 | € 32,947,491 |
Cash and cash equivalents | 22,530,687 | 4,123,532 |
Total assets exposed to the risk | € 30,863,927 | € 37,071,023 |
Risk (Details 2)
Risk (Details 2) | 12 Months Ended |
Dec. 31, 2020EUR (€)$ / € | |
Euro Weakens Against U.S. Dollars | |
SummaryOfRiskLineItems [Line Items] | |
Conversion rate | $ / € | 1.2500 |
Profit/(loss) | € (2,805,812) |
Carrying amount | € 28,058,115 |
Euro Strengths Against U.S. Dollars | |
SummaryOfRiskLineItems [Line Items] | |
Conversion rate | $ / € | 1.0500 |
Profit/(loss) | € 3,429,325 |
Carrying amount | € 34,293,252 |
Risk (Details 3)
Risk (Details 3) - EUR (€) | Dec. 31, 2020 | Dec. 31, 2019 |
Risk | ||
Short-term deposits | € 24,416,767 | € 27,803,153 |
Cash at banks | 1,551,914 | 5,328,127 |
Marketable securities (current) | 54,752,700 | 81,895,377 |
Other (non-current portion) | 272,268 | 272,614 |
Other (current) | 409,333 | 458,491 |
Total funds available | € 81,402,982 | € 115,757,762 |
Risk (Details Narrative)
Risk (Details Narrative) - EUR (€) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Risk | ||||
Maximum exposure to counterparty credit risk | € 81,400,000 | € 115,800,000 | ||
Carrying amount of cash and cash equivalents | € 25,968,681 | € 33,131,280 | € 55,386,240 | € 123,281,888 |
Commitments (Details)
Commitments (Details) - EUR (€) | Dec. 31, 2020 | Dec. 31, 2019 |
Capitalized leases | ||
Contractual minimum lease obligations | € 577,715 | |
Effect of discounting | 18,675 | |
Lease liabilities | 559,040 | |
Lease obligations | ||
Total | 601,460 | € 903,951 |
Low value leases | 23,745 | 18,166 |
Short-term leases | 0 | 30,845 |
Capitalized leases | 577,715 | 854,940 |
Not Later than One Year | ||
Capitalized leases | ||
Contractual minimum lease obligations | 346,000 | |
Effect of discounting | 7,485 | |
Lease liabilities | 338,516 | |
Lease obligations | ||
Total | 352,261 | 371,105 |
Low value leases | 6,261 | 5,387 |
Short-term leases | 0 | 10,841 |
Capitalized leases | 346,000 | 354,878 |
After One Year but Not More than Five Years | ||
Capitalized leases | ||
Contractual minimum lease obligations | 231,715 | |
Effect of discounting | 11,190 | |
Lease liabilities | 220,525 | |
Lease obligations | ||
Total | 249,199 | 532,845 |
Low value leases | 17,484 | 12,779 |
Short-term leases | 0 | 20,005 |
Capitalized leases | 231,715 | 500,062 |
More than Five Years | ||
Capitalized leases | ||
Contractual minimum lease obligations | 0 | |
Effect of discounting | 0 | |
Lease liabilities | 0 | |
Lease obligations | ||
Total | 0 | 0 |
Low value leases | 0 | 0 |
Short-term leases | 0 | 0 |
Capitalized leases | € 0 | € 0 |
Other information (Details)
Other information (Details) - EUR (€) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SummaryOfOtherInformationLineItems [Line Items] | |||
Compensation of key management personnel | € 3,487,643 | € 8,991,495 | € 13,649,754 |
Executive Management | |||
SummaryOfOtherInformationLineItems [Line Items] | |||
Short-term employee benefits | 1,995,292 | 2,793,529 | 2,524,202 |
Share-based payments | 1,139,286 | 5,218,324 | 9,801,454 |
Compensation of key management personnel | 3,134,578 | 8,011,853 | 12,325,656 |
Non-Executive Board of Directors | |||
SummaryOfOtherInformationLineItems [Line Items] | |||
Short-term employee benefits | 283,127 | 269,031 | 238,180 |
Share-based payments | 69,938 | 710,611 | 1,085,917 |
Compensation of key management personnel | € 353,065 | € 979,642 | € 1,324,098 |
Other information (Details Narr
Other information (Details Narrative) - EUR (€) | Dec. 31, 2020 | Dec. 31, 2019 |
SummaryOfOtherInformationLineItems [Line Items] | ||
Non-current assets | € 1,930,930 | € 2,590,528 |
Germany | ||
SummaryOfOtherInformationLineItems [Line Items] | ||
Non-current assets | 1,712,000 | 2,217,000 |
United States | ||
SummaryOfOtherInformationLineItems [Line Items] | ||
Non-current assets | € 219,000 | € 374,000 |