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Condensed Consolidated Balance Sheets (Unaudited)
| Balance Sheets | Notes | As of March 31, 2022 | As of December 31, 2021 | |||||||||
| ASSETS | ||||||||||||
| Non-current assets | ||||||||||||
| Property, plant and equipment | 5 | 4,908 | 5,116 | |||||||||
| Right-of-use assets | 6 | 2,774 | 2,914 | |||||||||
| Intangible asset | 8 | 50,416 | 50,416 | |||||||||
| Long-term financial assets | 6 | 363 | 363 | |||||||||
| Total non-current assets | 58,461 | 58,809 | ||||||||||
| Current assets | ||||||||||||
| Prepaid expenses | 9 | 2,805 | 3,015 | |||||||||
| Accrued income | 3 | 152 | 975 | |||||||||
| Other current receivables | 266 | 428 | ||||||||||
| Short-term financial assets | 10 | 116,000 | 116,000 | |||||||||
| Cash and cash equivalents | 10 | 57,835 | 82,216 | |||||||||
| Total current assets | 177,058 | 202,634 | ||||||||||
| Total assets | 235,519 | 261,443 | ||||||||||
| SHAREHOLDERS' EQUITY AND LIABILITIES | ||||||||||||
| Shareholders' equity | ||||||||||||
| Share capital | 1,795 | 1,794 | ||||||||||
| Share premium | 431,253 | 431,251 | ||||||||||
| Treasury shares | 11 | (124 | ) | (124 | ) | |||||||
| Accumulated losses | (218,793 | ) | (200,942 | ) | ||||||||
| Total shareholders' equity | 214,131 | 231,979 | ||||||||||
| Non-current liabilities | ||||||||||||
| Long-term lease liabilities | 6 | 2,196 | 2,340 | |||||||||
| Net employee defined benefit liabilities | 7,281 | 7,098 | ||||||||||
| Total non-current liabilities | 9,477 | 9,438 | ||||||||||
| Current liabilities | ||||||||||||
| Trade and other payables | 501 | 2,003 | ||||||||||
| Accrued expenses | 7 | 10,571 | 16,736 | |||||||||
| Deferred income | 3 | 266 | 717 | |||||||||
| Short-term lease liabilities | 6 | 573 | 570 | |||||||||
| Total current liabilities | 11,911 | 20,026 | ||||||||||
| Total liabilities | 21,388 | 29,464 | ||||||||||
| Total shareholders' equity and liabilities | 235,519 | 261,443 |
accompanying notes form an integral part of these Interim Condensed Consolidated Financial Statements (Unaudited).
Condensed Consolidated Statements of Income/(Loss)
(in CHF thousands except for share and
| For the Three Months Ended March 31, | ||||||||||
| Notes | 2022 | 2021 | ||||||||
| Revenue | ||||||||||
| Contract revenue | 3 | - | - | |||||||
| Total revenue | - | - | ||||||||
| Operating expenses | ||||||||||
| Research & development expenses | (15,123 | ) | (13,329 | ) | ||||||
| General & administrative expenses | (4,166 | ) | (4,338 | ) | ||||||
| Other operating income/(expense) | 3 | 459 | 416 | |||||||
| Total operating expenses | (18,830 | ) | (17,251 | ) | ||||||
| Operating loss | (18,830 | ) | (17,251 | ) | ||||||
| Financial income | 12 | - | - | |||||||
| Financial expense | 12 | (154 | ) | (26 | ) | |||||
| Exchange differences | 12 | 140 | 543 | |||||||
| Finance result, net | 12 | (14 | ) | 517 | ||||||
| Loss before tax | (18,844 | ) | (16,734 | ) | ||||||
| Income tax expense | (4 | ) | - | |||||||
| Loss for the period | (18,848 | ) | (16,734 | ) | ||||||
| Loss per share: | 4 | |||||||||
| Basic and diluted loss per share for the period attributable to equity holders | (0.23 | ) | (0.23 | ) |
Condensed Consolidated Statements of Comprehensive Income/(Loss) (Unaudited)
| For the Three Months ended March 31, | ||||||||||||
| (in CHF thousands) | Note | 2022 | 2021 | |||||||||
| Loss for the period | (18,848 | ) | (16,734 | ) | ||||||||
| Items that may be reclassified to income or loss in subsequent periods (net of tax): | ||||||||||||
| Currency translation differences | 10 | - | ||||||||||
| Items that will not be reclassified to income or loss in subsequent periods (net of tax): | ||||||||||||
| Re-measurement losses on defined-benefit plans | - | - | ||||||||||
| Other comprehensive income/(loss) | 10 | - | ||||||||||
| Total comprehensive loss, net of tax | (18,838 | ) | (16,734 | ) |
accompanying notes form an integral part of these Interim Condensed Consolidated Financial Statements (Unaudited).
Condensed Consolidated Statements of Changes
in Equity (Unaudited)
| Notes | Share capital | Share premium | Treasury shares | Accumulated losses | Total | |||||||||||||||||
| Balance as of January 1, 2021 | 1,538 | 346,890 | (100 | ) | (132,850 | ) | 215,478 | |||||||||||||||
| Loss for the period | - | - | - | (16,734 | ) | (16,734 | ) | |||||||||||||||
| Other comprehensive income/(loss) | - | - | - | - | - | |||||||||||||||||
| Total comprehensive loss | - | - | - | (16,734 | ) | (16,734 | ) | |||||||||||||||
| - | ||||||||||||||||||||||
| Share-based payments | - | - | - | 857 | 857 | |||||||||||||||||
| Proceeds from sale of treasury shares in public offerings, net of underwriting fees | 11 | - | 7,937 | 15 | - | 7,952 | ||||||||||||||||
| Transaction offering costs | (125 | ) | (125 | ) | ||||||||||||||||||
| Issuance of shares, net of transaction costs: | ||||||||||||||||||||||
| restricted share awards | 1 | 39 | - | (47 | ) | (7 | ) | |||||||||||||||
| exercise of options | - | (5 | ) | - | - | (5 | ) | |||||||||||||||
| Balance as of March 31, 2021 | 1,539 | 354,736 | (85 | ) | (148,774 | ) | 207,416 |
| Notes | Share capital | Share premium | Treasury shares | Accumulated losses | Total | |||||||||||||||||
| Balance as of January 1, 2022 | 1,794 | 431,251 | (124 | ) | (200,942 | ) | 231,979 | |||||||||||||||
| Loss for the period | - | - | - | (18,848 | ) | (18,848 | ) | |||||||||||||||
| Other comprehensive income/(loss) | - | - | - | 10 | 10 | |||||||||||||||||
| Total comprehensive loss | - | - | - | (18,838 | ) | (18,838 | ) | |||||||||||||||
| Share-based payments | - | - | - | 989 | 989 | |||||||||||||||||
| Transaction offering costs | ||||||||||||||||||||||
| Issuance of shares, net of transaction costs: | ||||||||||||||||||||||
| restricted share awards | - | 2 | - | (2 | ) | - | ||||||||||||||||
| exercise of options | 1 | - | - | - | 1 | |||||||||||||||||
| Balance as of March 31, 2022 | 1,795 | 431,253 | (124 | ) | (218,793 | ) | 214,131 |
accompanying notes form an integral part of these Interim Condensed Consolidated Financial Statements (Unaudited).
Condensed Consolidated Statements of Cash
| For the Three Months Ended March 31, | ||||||||||
| Notes | 2022 | 2021 | ||||||||
| Operating activities | ||||||||||
| Loss for the period | (18,848 | ) | (16,734 | ) | ||||||
| Adjustments to reconcile net loss for the period to net cash flows: | ||||||||||
| Depreciation of property, plant and equipment | 5 | 460 | 441 | |||||||
| Depreciation of right-of-use assets | 6 | 140 | 107 | |||||||
| Finance (income)/expense, net | 12 | (179 | ) | (638 | ) | |||||
| Share-based compensation expense | 989 | 857 | ||||||||
| Change in net employee defined benefit liability | 183 | 155 | ||||||||
| Interest expense | 12 | 151 | 23 | |||||||
| Changes in working capital: | ||||||||||
| Decrease in prepaid expenses | 9 | 186 | 586 | |||||||
| Decrease in accrued income | 3 | 828 | 810 | |||||||
| Decrease/(increase) in other current receivables | 162 | (50 | ) | |||||||
| (Decrease) in accrued expenses | (5,128 | ) | (1,449 | ) | ||||||
| (Decrease)/increase in deferred income | 3 | (459 | ) | 368 | ||||||
| (Decrease) in trade and other payables | (1,493 | ) | (1,798 | ) | ||||||
| Cash used in operating activities | (23,008 | ) | (17,322 | ) | ||||||
| Interest income | - | - | ||||||||
| Interest paid | (132 | ) | (15 | ) | ||||||
| Finance costs | (3 | ) | (2 | ) | ||||||
| Net cash flows used in operating activities | (23,143 | ) | (17,339 | ) | ||||||
| Investing activities | ||||||||||
| Purchases of property, plant and equipment | 5 | (540 | ) | (790 | ) | |||||
| Net cash flows used in investing activities | (540 | ) | (790 | ) | ||||||
| Financing activities | ||||||||||
| Principal payments of lease obligations | 6 | (141 | ) | (108 | ) | |||||
| Proceeds from sale of treasury shares in public offerings, net of underwriting fees | 11 | - | 7,952 | |||||||
| Transaction costs on public offerings | 11 | - | (125 | ) | ||||||
| Transaction costs associated with issuance of shares | (776 | ) | - | |||||||
| Proceeds from issuance of common shares | 1 | (12 | ) | |||||||
| Net cash flows (used in)/provided by financing activities | (916 | ) | 7,707 | |||||||
| Net decrease in cash and cash equivalents | (24,599 | ) | (10,422 | ) | ||||||
| Cash and cash equivalents at January 1 | 82,216 | 160,893 | ||||||||
| Exchange gain/(loss) on cash and cash equivalents | 218 | 621 | ||||||||
| Cash and cash equivalents at March 31 | 57,835 | 151,092 | ||||||||
| Net decrease in cash and cash equivalents | (24,599 | ) | (10,422 | ) |
| Supplemental non-cash activity | ||||||||||||
| Capital expenditures in Trade and other payables or Accrued expenses | 5 | 15 | 131 |
accompanying notes form an integral part of these Interim Condensed Consolidated Financial Statements (Unaudited).
Notes to the Interim Condensed Consolidated
Financial Statements (Unaudited)
(in CHF thousands, except share and per share amounts)
AC Immune SA was founded
in 2003. The Company controls a fully-owned subsidiary, AC Immune USA, Inc. ("AC Immune
USA" or "Subsidiary" and, together with AC Immune SA, "AC Immune," "ACIU," "Company,"
"we," "our," "ours," "us"), which was registered and organized under the laws of Delaware,
USA in June 2021. The Company and its Subsidiary form the Group (See "Note 2. Basis of Preparation").
AC Immune SA is a clinical-stage
biopharmaceutical company leveraging our two proprietary technology platforms to discover, design and develop novel proprietary medicines
and diagnostics for prevention and treatment of neurodegenerative diseases (NDD) associated with protein misfolding. Misfolded proteins
are generally recognized as the leading cause of NDD, such as Alzheimer's disease (AD) and Parkinson's disease (PD), with
common mechanisms and drug targets, such as amyloid beta (Abeta), Tau, alpha-synuclein (a-syn) and TDP-43. Our corporate strategy is founded
upon a three-pillar approach that targets (i) AD, (ii) focused non-AD NDD including Parkinson's disease, ALS and NeuroOrphan indications
and (iii) diagnostics. We use our two unique proprietary platform technologies, SupraAntigen (conformation-specific biologics) and Morphomer
(conformation-specific small molecules), to discover, design and develop novel medicines and diagnostics to target misfolded proteins.
Interim Condensed Consolidated Financial Statements of AC Immune SA as of and for the three months ended March 31, 2022 were authorized
for issuance by the Company's Audit and Finance Committee on April 26, 2022.
Statement of compliance
Interim Condensed Consolidated Financial Statements as of March 31, 2022 and for the three months ended March 31, 2022 and 2021,
have been prepared in accordance with International Accounting Standard 34 (IAS 34), Interim Financial
Reporting as issued by the International Accounting Standards Board (IASB), and such financial information should be read in conjunction with the audited
consolidated financial statements in AC Immune's Annual Report on Form 20-F for the year ended December 31, 2021.
Basis of measurement
These Interim Condensed
Consolidated Financial Statements have been prepared under the historical cost convention except for items that are required to be accounted
and reporting currency
These Interim Condensed
Consolidated Financial Statements and accompanying notes are presented in Swiss Francs ("CHF"), which is AC Immune SA's
functional currency and the Group's reporting currency. The Company's subsidiary has a functional currency of the US Dollar
("USD"). The following exchange rates have been used for the translation of the financial statements of AC Immune USA:
| For the Three Months Ended March 31 | ||||||||
| 2022 | 2021 | |||||||
| CHF/USD | ||||||||
| Closing rate, USD 1 | 0.932 | - | ||||||
| Weighted average exchange rate, USD 1 | 0.933 | - |
The Company wholly owns
its Subsidiary and fully consolidates its financial statements into these Interim Condensed Consolidated Financial Statements.
and accounting estimates
preparation of the Company's Interim Condensed Consolidated Financial Statements in conformity with IAS 34 requires management to
make judgments, estimates and assumptions that affect the amounts reported in the Interim Condensed Consolidated Financial Statements
and accompanying notes, and the related application of accounting policies as it relates to the reported amounts of assets, liabilities,
income and expenses.
The areas where AC Immune has had to make judgments,
estimates and assumptions relate to (i) revenue recognition on Licensing and Collaboration Agreements, (ii) clinical development
accruals, (iii) net employee defined benefit liability, (iv) income taxes, (v) share-based compensation, (vi) right-of-use
assets and lease liabilities and (vii) our IPR&D asset. 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.
Fair value of financial assets and liabilities
The Company's financial assets and liabilities
are composed of receivables, short-term and long-term financial assets, cash and cash equivalents, trade and other payables, accrued expenses
and lease liabilities. The fair value of these financial instruments approximates their respective carrying values due to the short-term
maturity of these instruments, and are held at their amortized cost in accordance with IFRS 9, unless otherwise explicitly noted.
Accounting policies, new standards, interpretations
and amendments adopted by the Company
The accounting policies
adopted in the preparation of the Interim Condensed Consolidated Financial Statements are consistent with those followed in the preparation
of the Company's annual consolidated financial statements for the year ended December 31, 2021.
The Company has not adopted
any other standard, interpretation or amendment that has been issued but is not yet effective. Such standards are not currently expected
to have a material impact on the entity in the current or future reporting periods, and on foreseeable future transactions.
The Company believes
that it will be able to meet all of its obligations as they fall due for at least 12 months from March 31, 2022, after considering the
Company's cash position of CHF 57.8 million and short-term financial assets of CHF 116.0 million as of March 31, 2022. Hence, the
unaudited Interim Condensed Consolidated Financial Statements have been prepared on a going-concern basis.
To date, the Company
has financed its cash requirements primarily from its public offerings, share issuances, contract revenues from license and collaboration
agreements and grants. The Company is a clinical stage company and is exposed to all the risks inherent to establishing a business. Inherent
to the Company's business are various risks and uncertainties, including the substantial uncertainty as to whether current projects
will succeed. The Company's success may depend in part upon its ability to (i) establish and maintain a strong patent position and
protection, (ii) enter into collaborations with partners in the pharmaceutical and biopharmaceutical industries, (iii) successfully move
its product candidates through clinical development, (iv) attract and retain key personnel and (v) acquire capital to support its operations.
In addition to the foregoing,
based on the Company's current assessment, the Company does not expect any material impact on its long-term development timeline,
its liquidity or ability to remain a going concern due to the worldwide spread of the Covid-19 virus. The Company continues to assess
the effect on its operations by carefully monitoring the spread of Covid-19 and taking appropriate steps intended to offset any negative
impacts from the Covid-19 virus.
For the three months
ended March 31, 2022 and 2021, AC Immune generated no contract revenues. This represents no change.
The following table presents
changes in the Company's contract assets and liabilities during the three months ended March 31, 2022 and 2021:
| in CHF thousands | Balance at the beginning of the reporting period | Additions | Deductions | Balance at the end of the reporting period | ||||||||||||
| Three months ended March 31, 2022: | ||||||||||||||||
| Accrued income | 975 | 164 | (987 | ) | 152 | |||||||||||
| Deferred income | 717 | - | (451 | ) | 266 |
| Three months ended March 31, 2021: | ||||||||||||||||
| Accrued income | 1,591 | 781 | (1,591 | ) | 781 | |||||||||||
| Deferred income | 306 | 781 | (414 | ) | 673 |
During the three months
ended March 31, 2022 and 2021, the Company did not recognize contract revenues as a result of changes in the contract asset and the contract