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AFFIMED N.V. Index to Condensed Consolidated Financial Statements Unaudited condensed consolidated statement of comprehensive income / (loss) 2 Condensed consolidated statement of financial position 3 Unaudited condensed

Key Takeaway: Condensed Consolidated Financial Statements 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 statemen

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Condensed Consolidated Financial Statements
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
For the three months ended September 30 For the nine months ended September 30
Note 2015 2016 2015 2016
(in thousand)
Revenue 3 1,155 938 5,903 4,943
Other income - net 4 298 19 631 143
Research and development expenses 8 (6,448 ) (8,760 ) (14,974 ) (24,456 )
General and administrative expenses 8 (2,068 ) (2,181 ) (5,592 ) (6,239 )
Operating (loss) (7,063 ) (9,984 ) (14,032 ) (25,609 )
Finance income / (costs) - net 5 (193 ) (311 ) 108 (1,183 )
Loss before tax (7,256 ) (10,295 ) (13,924 ) (26,792 )
Income taxes (36 ) 0 (36 ) (2 )
Loss for the period (7,292 ) (10,295 ) (13,960 ) (26,794 )
Total comprehensive loss (7,292 ) (10,295 ) (13,960 ) (26,794 )
Loss per share in per share (undiluted = diluted) (0.24 ) (0.31 ) (0.52 ) (0.81 )
The Notes are an integral part of these consolidated financial
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Note December 31, 2015 September 30, 2016
(unaudited)
(in thousand)
ASSETS
Non-current assets
Intangible assets 72 64
Leasehold improvements and equipment 915 845
987 909
Current assets
Inventories 228 253
Trade and other receivables 915 2,337
Other assets 6 452 603
Financial assets 7 0 13,440
Cash and cash equivalents 76,740 35,693
78,335 52,326
TOTAL ASSETS 79,322 53,235
EQUITY AND LIABILITIES
Equity
Issued capital 333 333
Capital reserves 187,169 189,888
Accumulated deficit (120,228 ) (147,022 )
Total equity 67,274 43,199
Non current liabilities
Borrowings 9 3,104 1,685
Total non-current liabilities 3,104 1,685
Current liabilities
Trade and other payables 4,444 6,327
Borrowings 9 1,472 1,959
Deferred revenue 3 3,028 65
Total current liabilities 8,944 8,351
TOTAL EQUITY AND LIABILITIES 79,322 53,235
The Notes are an integral part of these consolidated financial
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the nine months ended September 30
Note 2015 2016
(in thousand)
Cash flow from operating activities
Loss for the period (13,960 ) (26,794 )
Adjustments for the period:
Income taxes 36 2
Depreciation and amortisation 240 293
Share based payments 8 1,453 2,719
Finance income / costs - net 5 (108 ) 1,183
(12,339 ) (22,597 )
Change in trade and other receivables (508 ) (1,398 )
Change in inventories (40 ) (25 )
Change in other assets 6 0 (151 )
Change in trade, other payables and deferred revenue (1,218 ) (1,080 )
Cash used in operating activities (14,105 ) (25,251 )
Interest received 5 60
Paid interest (426 ) (355 )
Net cash used in operating activities (14,526 ) (25,546 )
Cash flow from investing activities
Purchase of intangible assets (10 ) (21 )
Purchase of leasehold improvements and equipment (204 ) (194 )
Cash paid for investments in financial assets 7 0 (27,088 )
Cash received from maturity of financial assets 0 13,536
Net cash used for investing activities (214 ) (13,767 )
Cash flow from financing activities
Proceeds from issue of common shares 37,524 0
Transactions costs related to issue of common shares (3,090 ) 0
Repayment of borrowings 9 0 (1,079 )
Cash flow from financing activities 34,434 (1,079 )
Net changes to cash and cash equivalents 19,694 (40,392 )
Cash and cash equivalents at the beginning of the period 39,725 76,740
Exchange-rate related changes of cash and cash equivalents 1,006 (655 )
Cash and cash equivalents at the end of the period 60,425 35,693
The Notes are an integral part of these consolidated financial
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Note Issued capital Capital reserves Accumulated deficit Total equity
(in thousand)
Balance as of January 1, 2015 240 131,544 (99,989 ) 31,795
Issue of common shares 57 33,433 33,490
Exercise of share based payment awards 2 942 944
Equity-settled share based payment awards 8 1,453 1,453
Loss for the period (13,960 ) (13,960)
Balance as of September 30, 2015 299 167,372 (113,949 ) 53,722
Balance as of January 1, 2016 333 187,169 (120,228 ) 67,274
Equity-settled share based payment awards 8 2,719 2,719
Loss for the period (26,794 ) (26,794)
Balance as of September 30, 2016 333 189,888 (147,022 ) 43,199
The Notes are an integral part of these consolidated financial
Notes to the consolidated financial statements
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 condensed consolidated financial statements of Affimed as
of and for the period ended September 30, 2016 comprise the Company and its wholly owned and controlled subsidiaries Affimed GmbH,
Heidelberg, Germany (formerly Affimed Therapeutics AG), 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 and nine months
ended September 30, 2016 and 2015 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, 2015.
The interim financial statements were authorized for issuance
by the management board on November 2, 2016.
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, 2015.
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, 2015 with the exception of new amendments to standards and new or amended interpretations applied for the first
time as described below.
New standards and interpretations applied for the first
A number of amendments to standards and new or amended interpretations
are effective for annual periods beginning on or before January 1, 2016, and have been applied in preparing these financial statements.
Notes to the consolidated financial statements
Standard/interpretation Effective Date(1)
Annual Improvements to IFRSs 2012-2014 Cycle January 1, 2016
Amendments to IAS 16, 38 Clarification of acceptable methods of depreciation and amortization January 1, 2016
Amendments to IAS 1 Disclosure Initiative January 1, 2016
Amendments to IFRS 10, 12 and IAS 28 Investment Entities January 1, 2016
Amendment to IFRS 11 Accounting for Acquisitions of Interests in Joint Operations January 1, 2016
None of these amendments to standards and new or amended interpretations
had an effect on the interim consolidated financial statements of the Group.
New standards and interpretations not yet adopted
The following standards, amendments to standards and interpretations
are effective for annual periods beginning after December 31, 2016, and have not been applied in preparing these consolidated financial
Standard/interpretation Effective Date(1)
IFRS 15 Revenue from Contracts with Customers January 1, 2018
IFRS 9 Financial Instruments (2014) January 1, 2018
Amendments to IAS 7 Disclosure Initiative January 1, 2017
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
The Company has not yet determined if any of these amendments
to standards and new or amended interpretations will have an effect on its financial statements.
Collaboration agreement Amphivena
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 16.0 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.
Affimed recognized revenue of 8.6 million upon achievement
of three milestones consisting of the earned milestone payments of 9.0 million less Affimed's share in funding Amphivena
of 0.4 million. In the first quarter of 2015, the Group recognized revenue of 2.4 million for the achievement of the
third milestone (such amount had been previously received in cash in 2014 and deferred until the milestone was achieved).
After the achievement of the third milestone, the Group continued
to provide research and development services to Amphivena for nonrefundable advance payments of 7.5 million in the aggregate,
payable in three installments
Notes to the consolidated financial statements
( 1.3 million, 4.2 million and 2.0 million).
Revenue for these research and development services is recognized, net of Affimed's share in funding Amphivena, over the
service performance period. The first two installments of 5.2 million ( 5.5 million, net of Affimed's share of
0.3 million) were received in 2015, and an additional amount of 0.5 million was received in October 2016: 1.5
million as partial payment for the third installment, net of Affimed's share of 1.0 million in an additional financing
of Amphivena by Amphivena's existing investors. Affimed has committed to invest up to an additional 0.5 million in
The Company recognized 0.6 million and 3.4 million
as revenue for research and development services in the three and nine months ended September 30, 2016, net of Affimed's
share in funding Amphivena while services were provided under the license and development agreement (2015: 0.5 million and
Notes to the consolidated financial statements
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 to not continue the
commercialization, Affimed must at its option either repay the amount funded or grant a license to LLS to enable LLS to continue
Last updated: Nov 2, 2016