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AFFIMED N.V. INDEX TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Page Unaudited condensed consolidated statement of comprehensive income / (loss) 2 Condensed consolidated statement of financial position 3 Unaudited cond

Key Takeaway: TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Page Unaudited condensed consolidated statement of comprehensive income / (loss) 2 Condensed consolidated statement of financial position 3 Unaudited condensed consolidated statement of cash flows 4 Unaudited condensed consolidated

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TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Page
Unaudited condensed consolidated statement of comprehensive income / (loss) 2
Condensed consolidated statement of financial position 3
Unaudited condensed consolidated statement of cash flows 4
Unaudited condensed consolidated statement of changes in equity 5
Notes to the consolidated financial statements 6
Unaudited condensed consolidated statement
of comprehensive loss (in thousand)
For the three months ended March 31
Note 2016 2017
Revenue 3 1,936 399
Other income (expenses) - net 86 (9 )
Research and development expenses 7 (7,068 ) (5,442 )
General and administrative expenses 7 (2,093 ) (2,246 )
Operating loss (7,139 ) (7,298 )
Finance income / (costs) - net 4 (1,322 ) (456 )
Loss before tax (8,461 ) (7,754 )
Income taxes (1 ) (1 )
Loss for the period (8,462 ) (7,755 )
Total comprehensive loss (8,462 ) (7,755 )
Loss per share in per share (0.25 ) (0.19 )
(undiluted = diluted)
The Notes are an integral part of these consolidated financial
Condensed consolidated statement of financial
position (in thousand)
Note December 31, 2016 March 31, 2017
(unaudited)
ASSETS
Non-current assets
Intangible assets 55 55
Leasehold improvements and equipment 822 828
877 883
Current assets
Inventories 197 191
Trade and other receivables 2,255 2,275
Other assets 516 12
Financial assets 5 9,487 4,676
Cash and cash equivalents 35,407 49,007
47,862 56,161
TOTAL ASSETS 48,739 57,044
EQUITY AND LIABILITIES
Equity
Issued capital 333 439
Capital reserves 190,862 207,352
Accumulated deficit (152,444 ) (160,199 )
Total equity 6 38,751 47,592
Non current liabilities
Borrowings 3,617 3,300
Total non-current liabilities 3,617 3,300
Current liabilities
Trade and other payables 5,323 4,536
Borrowings 973 1,389
Deferred revenue 75 227
Total current liabilities 6,371 6,152
TOTAL EQUITY AND LIABILITIES 48,739 57,044
The Notes are an integral part of these consolidated financial
Unaudited condensed consolidated statement
For the three months ended March 31
Note 2016 2017
Cash flow from operating activities
Loss for the period (8,462 ) (7,755 )
Adjustments for the period:
- Income taxes 1 1
- Depreciation and amortization 105 86
- Share based payments 7 947 565
- Finance income / costs - net 4 1,322 456
(6,087 ) (6,647 )
Change in trade and other receivables (999 ) (12 )
Change in inventories (14 ) 6
Change in other assets (230 ) 97
Change in trade, other payables and deferred revenue (1,060 ) (640 )
Cash used in operating activities (8,390 ) (7,196 )
Interest received 0 24
Paid interest (125 ) (62 )
Net cash used in operating activities (8,515 ) (7,234 )
Cash flow from investing activities
Purchase of intangible assets (10 ) (9 )
Purchase of leasehold improvements and equipment (113 ) (83 )
Cash paid for investments in financial assets 5 (18,128 ) (4,655 )
Cash received from maturity of financial assets 5 0 9,209
Net cash used for investing activities (18,251 ) 4,462
Cash flow from financing activities
Proceeds from issue of common shares 6 0 17,901
Transaction costs related to issue of common shares 6 0 (1,463 )
Cash flow from financing activities 0 16,438
Net changes to cash and cash equivalents (26,766 ) 13,666
Cash and cash equivalents at the beginning of the period 76,740 35,407
Exchange-rate related changes of cash and cash equivalents (793 ) (66 )
Cash and cash equivalents at the end of the period 49,181 49,007
The Notes are an integral part of these consolidated financial
Unaudited condensed consolidated statement
of changes in equity (in thousand)
Note Issued capital Capital reserves Accumulated deficit Total equity
Balance as of January 1, 2016 333 187,169 (120,228 ) 67,274
Equity-settled share based payment awards 7 947 947
Loss for the period (8,462 ) (8,462)
Balance as of March 31, 2016 333 188,116 (128,690 ) 59,759
Balance as of January 1, 2017 333 190,862 (152,444 ) 38,751
Issue of common shares 6 106 15,925 16,031
Equity-settled share based payment awards 7 565 565
Loss for the period (7,755 ) (7,755)
Balance as of March 31, 2017 439 207,352 (160,199 ) 47,592
The Notes are an integral part of these consolidated financial
Affimed N.V. (in the following Affimed or
Company) is a Dutch company with limited liability (naamloze vennootschap) and has its corporate seat in Amsterdam, the Netherlands.
The Company was founded as Affimed Therapeutics B.V. on May 14, 2014 as a private company with limited liability (besloten
vennootschap met beperkte aansprakelijkheid) for purposes of a corporate reorganization of Affimed Therapeutics AG and converted
its legal form under Dutch law to a public company with limited liability for an initial public offering of its common shares.
The condensed consolidated financial statements
of Affimed comprise the Company and its wholly owned and controlled subsidiaries Affimed GmbH, Heidelberg, Germany, AbCheck s.r.o.,
Plzen, Czech Republic and Affimed Inc., Delaware, USA.
Affimed is a clinical-stage biopharmaceutical
group focused on discovering and developing targeted cancer immunotherapies. The Company's product candidates are developed
in the field of immuno-oncology, which represents an innovative approach to cancer research that seeks to harness the body's
own immune system to fight tumor cells. Affimed has its own research and development programs and collaborations, where the Company
is performing research services for third parties.
Statement of compliance
The interim financial statements for the
three months ended March 31, 2017 and 2016 have been prepared in accordance with IAS 34 Interim Financial Reporting. The interim
financial statements do not include all the information and disclosures required in the annual financial statements, and should
be read in conjunction with Affimed N.V.'s annual consolidated financial statements as at December 31, 2016.
The interim financial statements were authorized
for issuance by the management board on May 15, 2017.
Critical judgments and accounting estimates
The preparation of the interim 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 interim financial statements,
the critical judgments made by management in applying the Group's accounting policies were the same as those that applied to the
consolidated financial statements as at and for the year ended December 31, 2016.
Functional and presentation currency
These interim financial statements are presented
in euro, which is the Company's functional currency. All
financial information presented in euro
has been rounded to the nearest thousand (abbreviated ) or million (abbreviated million).
Significant accounting policies
The accounting policies applied by the Group
in these interim financial statements are the same as those applied by the Group in its consolidated financial statements as at
and for the year ended December 31, 2016.
New standards and interpretations applied
The following amendments to standards and
new or amended interpretations are effective for annual periods beginning on or before January 1, 2017, and will be applied in
preparing the annual financial statements for the year 2017:
Standard/interpretation Effective Date 1
Amendments to IAS 7 Disclosure Initiative January 1, 2017
1 Shall apply for periods beginning
on or after the date shown in the effective date column.
New standards and interpretations not
The following standards, amendments to standards
and interpretations are effective for annual periods beginning after December 31, 2017, and have not been applied in preparing
these consolidated financial statements.
IFRS 15 Revenue from Contracts with Customers January 1, 2018
IFRS 9 Financial Instruments (2014) January 1, 2018
IFRS 16 Leases January 1, 2019
Clarifications to IFRS 15 Revenue from Contracts with Customers January 1, 2018
Amendments to IFRS 2: Classification and Measurement of Share-
based Payment Transactions January 1, 2018
Annual Improvements to IFRS Standards 2014-2016 Cycle January 1, 2018
1 Shall apply for periods beginning
on or after the date shown in the effective date column.
The Group is assessing the potential impact
that IFRS 9, 15 or 16 could have on its consolidated financial statements. The other new or amended standards and interpretations
are not expected to have a significant effect on the consolidated financial statements of the Group.
Collaboration agreement Amphivena
Until July 2016, Affimed was party to a
collaboration with Amphivena Therapeutics Inc., San Francisco, USA (in the following Amphivena). The purpose of the collaboration
was the development of a product candidate for hematological malignancies. The collaboration included a License and Development
Agreement between Amphivena and Affimed, which expired when Amphivena obtained the approval of an investigational new drug application
(IND) from the FDA in July 2016.
Pursuant to the license and development
agreement between Affimed and Amphivena, Affimed granted a license to intellectual property and agreed to perform certain services
for Amphivena related to the development of a product candidate for hematological malignancies. In consideration for the research
and development work that was performed, Amphivena was required to pay to Affimed service fees totaling approximately 16
million payable according to the achievement of milestones and phase progressions as described under the license and development
agreement. Since the expiration of the agreement, the parties have been closing out the collaboration by exchanging documentation
and transferring materials and third party contracts.
During the three months ended March 31,
2017 (when the Company achieved the last milestone) and 2016, the Company's revenue for the performance of research and development
services amounted to 0.0 million and to 1.4 million,
respectively, net of Affimed's share in funding Amphivena.
During the three months ended March 31, 2017, Affimed funded Amphivena with 0.6 million which was offset against consideration
Amphivena has obtained funding solely by
issuing preferred stock to investors. Investors provide financing in exchange for preferred stock issued by Amphivena under the
terms of certain stock purchase agreements. Through March 31, 2017, Affimed participated in the financing of Amphivena with cash
investments of 2.3 million.
Collaboration agreement The Leukemia & Lymphoma Society
Affimed is party to a collaboration with
LLS to fund the development of a specific TandAb. Under the terms of the agreement, LLS has agreed to contribute up to $4.4 million
contingent upon the achievement of certain milestones.
In the event that the research and development
is successful, Affimed must proceed with commercialization of the licensed product. If Affimed decides for business reasons not
Last updated: May 17, 2017