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unaudited condensed Interim Consolidated Financial Statements for the three-month and the six-month periods ended June 30, 2017, included herein, have been prepared in accordance with International
Financial Reporting Standards ( IFRS ) as issued by the International Accounting Standards Board ( IASB ). The consolidated financial statements are presented in euros. All references in this interim report to $,
US$, U.S.$, U.S. dollars, dollars, and USD mean U.S. dollars and all references to and euros mean euros, unless otherwise noted.
This interim report, including Management s Discussion and Analysis of Financial Condition and Results of Operations,
contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 27A of the Securities Act. All statements other than present and historical facts and conditions contained in this
interim report, including statements regarding our future results of operations and financial position, business strategy, plans and our objectives for future operations, are forward-looking statements. When used in this interim report, the words
anticipate, believe, can, could, estimate, expect, intend, is designed to, may, might, plan,
potential, predict, objective, should, or the negative of these and similar expressions identify forward-looking statements. Actual results, performance or events may differ materially from those
projected in any forward-looking statement. Factors that may cause actual results to differ from those in any forward-looking statement include, without limitation, those described under Risk Factors and Special Note Regarding
Forward-Looking Statements in our Annual Report on Form 20-F filed with the Securities and Exchange Commission on March 23, 2017 (the Annual Report ). As a result of these factors, we
cannot assure you that the forward-looking statements in this interim report will prove to be accurate. Furthermore, if our forward-looking statements prove to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties
in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified time frame or at all. We undertake no obligation to
publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
As used in this interim report, the terms Cellectis, we, our, us, and the
Company refer to Cellectis S.A. and its subsidiaries, taken as a whole, unless the context otherwise requires.
| PART I FINANCIAL INFORMATION | 2 | |||||
| Item 1. | Condensed Financial Statements (Unaudited) | 2 | ||||
| Item 2. | Management s Discussion & Analysis of Financial Condition and Results of Operations | 26 | ||||
| Item 3. | Quantitative and Qualitative Disclosures About Market Risks | 36 | ||||
| Item 4. | Controls and Procedures | 37 | ||||
| PART II OTHER INFORMATION | 38 | |||||
| Item 1. | Legal Proceedings | 38 | ||||
| Item 1A. | Risk Factors | 38 | ||||
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 38 | ||||
| Item 3. | Default Upon Senior Securities | 38 | ||||
| Item 4. | Mine Safety Disclosures | 38 | ||||
| Item 5. | Other Information | 38 | ||||
| Item 6. | Exhibits | 38 |
PART I FINANCIAL INFORMATION
Item 1. Condensed Financial Statements (Unaudited)
STATEMENTS OF CONSOLIDATED FINANCIAL POSITION
| As of | ||||||||||||
| Notes | December 31, 2016 Audited | June 30, 2017 Unaudited | ||||||||||
| ASSETS | ||||||||||||
| Non-current assets | ||||||||||||
| Intangible assets | 1,274 | 1,213 | ||||||||||
| Property, plant, and equipment | 5 | 16,033 | 15,466 | |||||||||
| Other non-current financial assets | 656 | 835 | ||||||||||
| Total non-current assets | 17,963 | 17,515 | ||||||||||
| Current assets | ||||||||||||
| Inventories | 112 | 114 | ||||||||||
| Trade receivables | 6.1 | 3,441 | 4,346 | |||||||||
| Subsidies receivables | 6.2 | 8,276 | 13,500 | |||||||||
| Other current assets | 6.3 | 8,414 | 14,196 | |||||||||
| Current financial assets | 7.1 | 34,714 | 34,958 | |||||||||
| Cash and cash equivalents | 7.2 | 241,502 | 202,656 | |||||||||
| Total current assets | 296,459 | 269,771 | ||||||||||
| TOTAL ASSETS | 314,422 | 287,286 | ||||||||||
| LIABILITIES | ||||||||||||
| Shareholders equity | ||||||||||||
| Share capital | 11 | 1,767 | 1,793 | |||||||||
| Premiums related to the share capital | 473,306 | 496,752 | ||||||||||
| Treasury share reserve | (307 | ) | (199 | ) | ||||||||
| Currency translation adjustment | 2,501 | (3,030 | ) | |||||||||
| Retained earnings | (157,695 | ) | (218,496 | ) | ||||||||
| Net income (loss) | (60,776 | ) | (42,653 | ) | ||||||||
| Total shareholders equity - Group Share | 258,795 | 234,168 | ||||||||||
| Non-controlling interests | 1,779 | 3,118 | ||||||||||
| Total shareholders equity | 260,574 | 237,285 | ||||||||||
| Non-current liabilities | ||||||||||||
| Non-current financial liabilities | 8 | 28 | 18 | |||||||||
| Non-current provisions | 14 | 532 | 571 | |||||||||
| Total non-current liabilities | 560 | 589 | ||||||||||
| Current liabilities | ||||||||||||
| Current financial liabilities | 8 | 1,641 | 61 | |||||||||
| Trade payables | 9,223 | 15,040 | ||||||||||
| Deferred revenues and deferred income | 10 | 36,931 | 28,605 | |||||||||
| Current provisions | 14 | 563 | 382 | |||||||||
| Other current liabilities | 9 | 4,930 | 5,323 | |||||||||
| Total current liabilities | 53,288 | 49,412 | ||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS EQUITY | 314,422 | 287,286 |
The accompanying notes form an integral part of these unaudited condensed Interim Consolidated Financial
UNAUDITED INTERIM STATEMENTS OF CONSOLIDATED OPERATIONS
in thousands, except per share amounts
| For the six-month period ended June 30, | ||||||||||||
| Notes | 2016 | 2017 | ||||||||||
| Revenues and other income | ||||||||||||
| Revenues | 3.1 | 22,801 | 12,230 | |||||||||
| Other income | 3.1 | 4,838 | 5,582 | |||||||||
| Total revenues and other income | 27,639 | 17,812 | ||||||||||
| Operating expenses | ||||||||||||
| Royalty expenses | 3.2 | (723 | ) | (1,086 | ) | |||||||
| Research and development expenses | 3.2 | (38,396 | ) | (35,303 | ) | |||||||
| Selling, general and administrative expenses | 3.2 | (19,127 | ) | (18,248 | ) | |||||||
| Other operating income and expenses | 180 | 238 | ||||||||||
| Total operating expenses | (58,066 | ) | (54,398 | ) | ||||||||
| Operating income (loss) | (30,427 | ) | (36,586 | ) | ||||||||
| Financial gain (loss) | (5,292 | ) | (6,067 | ) | ||||||||
| Net income (loss) | (35,719 | ) | (42,653 | ) | ||||||||
| Attributable to shareholders of Cellectis | (35,719 | ) | (42,653 | ) | ||||||||
| Attributable to non-controlling interests | ||||||||||||
| Basic / Diluted net income (loss) per share attributable to shareholders of Cellectis | 13 | |||||||||||
| Basic net income (loss) per share ( /share) | (1.01 | ) | (1.20 | ) | ||||||||
| Diluted net income (loss) per share ( /share) | (1.01 | ) | (1.20 | ) |
The accompanying notes form an integral part of these unaudited condensed Interim Consolidated Financial
UNAUDITED INTERIM STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME
| For the six-month period ended June 30, | ||||||||
| 2016 | 2017 | |||||||
| Net income (loss) | (35,719 | ) | (42,653 | ) | ||||
| Actuarial gains and losses | (94 | ) | ||||||
| Other comprehensive income (loss) that will not be reclassified subsequently to income or loss | (94 | ) | ||||||
| Currency translation adjustment | 110 | (5,740 | ) | |||||
| Other comprehensive income (loss) that will be reclassified subsequently to income or loss | 110 | (5,740 | ) | |||||
| Total Comprehensive income (loss) | (35,704 | ) | (48,393 | ) | ||||
| Attributable to shareholders of Cellectis | (35,692 | ) | (48,183 | ) | ||||
| Attributable to non-controlling interests | (12 | ) | (210 | ) |
The accompanying notes form an integral part of these unaudited condensed Interim Consolidated Financial
UNAUDITED INTERIM STATEMENTS OF CONSOLIDATED OPERATIONS
in thousands, except per share amounts
| For the three-month period ended June 30, | ||||||||||||
| Notes | 2016 | 2017 | ||||||||||
| Revenues and other income | ||||||||||||
| Revenues | 3.1 | 15,823 | 5,902 | |||||||||
| Other income | 3.1 | 2,317 | 2,248 | |||||||||
| Total revenues and other income | 18,140 | 8,150 | ||||||||||
| Operating expenses | ||||||||||||
| Royalty expenses | 3.2 | (291 | ) | (512 | ) | |||||||
| Research and development expenses | 3.2 | (19,526 | ) | (16,910 | ) | |||||||
| Selling, general and administrative expenses | 3.2 | (8,600 | ) | (9,105 | ) | |||||||
| Other operating income and expenses | 259 | 337 | ||||||||||
| Total operating expenses | (28,158 | ) | (26,190 | ) | ||||||||
| Operating income (loss) | (10,018 | ) | (18,040 | ) | ||||||||
| Financial gain (loss) | 3,763 | (6,045 | ) | |||||||||
| Net income (loss) | (6,255 | ) | (24,085 | ) | ||||||||
| Attributable to shareholders of Cellectis | (6,255 | ) | (24,085 | ) | ||||||||
| Basic / Diluted net income (loss) per share attributable to shareholders of Cellectis | 13 | |||||||||||
| Basic net income (loss) per share ( /share) | (0.18 | ) | (0.68 | ) | ||||||||
| Diluted net income (loss) per share ( /share) | (0.18 | ) | (0.68 | ) |
The accompanying notes form an integral part of these unaudited condensed Interim Consolidated Financial
UNAUDITED INTERIM STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME
| For the three-month period ended June 30, | ||||||||
| 2016 | 2017 | |||||||
| Net income (loss) | (6,255 | ) | (24,085 | ) | ||||
| Actuarial gains and losses | (94 | ) | ||||||
| Other comprehensive income (loss) that will not be reclassified subsequently to income or loss | (94 | ) | ||||||
| Currency translation adjustment | 2,041 | (4,637 | ) | |||||
| Other comprehensive income (loss) that will be reclassified subsequently to income or loss | 2,041 | (4,637 | ) | |||||
| Total Comprehensive income (loss) | (4,308 | ) | (28,721 | ) | ||||
| Attributable to shareholders of Cellectis | (4,333 | ) | (28,537 | ) | ||||
| Attributable to non-controlling interests | 24 | (185 | ) |
UNAUDITED INTERIM STATEMENTS OF CONSOLIDATED CASH FLOWS
| For the six-month period ended June 30, | ||||||||||||
| Notes | 2016 | 2017 | ||||||||||
| Cash flows from operating activities | ||||||||||||
| Net loss for the period | (35,719 | ) | (42,653 | ) | ||||||||
| Net loss for the period of discontinued operations | ||||||||||||
| Net (loss) income for the period of continuing operations | (35,719 | ) | (42,653 | ) | ||||||||
| Reconciliation of net loss and of the cash used for operating activities | ||||||||||||
| Adjustments for | ||||||||||||
| Amortization and depreciation | 931 | 1,191 | ||||||||||
| Movements in valuation allowances of working capital | ||||||||||||
| Net loss (income) on disposals | 11 | 3 | ||||||||||
| Net finance expenses (revenue) | 5,292 | 6,067 | ||||||||||
| Expenses related to share-based payments | 27,796 | 24,076 | ||||||||||
| Provisions | (77 | ) | (146 | ) | ||||||||
| Interest (paid) / received | 1,188 | 519 | ||||||||||
| Operating cash flows before change in working capital | (578 | ) | (10,944 | ) | ||||||||
| Decrease (increase) in inventories | 32 | (2 | ) | |||||||||
| Decrease (increase) in trade receivables and other current assets | (11,240 | ) | (6,882 | ) | ||||||||
| Decrease (increase) in subsidies receivables | (4,978 | ) | (5,265 | ) | ||||||||
| (Decrease) increase in trade payables and other current liabilities | (2,213 | ) | 6,138 | |||||||||
| (Decrease) increase in deferred income | (10,122 | ) | (8,283 | ) | ||||||||
| Change in working capital | (28,520 | ) | (14,295 | ) | ||||||||
| Net cash flows provided by (used in) operating activities | (29,098 | ) | (25,238 | ) | ||||||||
| Cash flows from investment activities | ||||||||||||
| Acquisition of intangible assets | (428 | ) | (83 | ) | ||||||||
| Acquisition of property, plant and equipment | (9,037 | ) | (1,183 | ) | ||||||||
| Net change in non-current financial assets | 56 | (114 | ) | |||||||||
| Sale (Acquisition) of current financial assets | (88,213 | ) | (2,162 | ) | ||||||||
| Net cash flows provided by (used in) investing activities | (97,623 | ) | (3,543 | ) | ||||||||
| Cash flows from financing activities | ||||||||||||
| Increase in share capital net of transaction costs | 365 | 954 | ||||||||||
| Decrease in borrowings | (58 | ) | (18 | ) | ||||||||
| Treasury shares | (56 | ) | 108 | |||||||||
| Net cash flows provided by (used in) financing activities | 252 | 1,045 | ||||||||||
| (Decrease) increase in cash | (126,469 | ) | (27,736 | ) | ||||||||
| Cash and cash equivalents at the beginning of the year | 314,238 | 241,502 | ||||||||||
| Effect of exchange rate changes on cash | (5,774 | ) | (11,110 | ) | ||||||||
| Cash and cash equivalents at the end of the period | 7 | 181,996 | 202,656 |
The accompanying notes form an integral part of these unaudited condensed Interim Consolidated Financial
UNAUDITED INTERIM STATEMENTS OF CHANGES IN CONSOLIDATED SHAREHOLDERS EQUITY
in thousands, except share data
| Share Capital Ordinary Shares | Equity | |||||||||||||||||||||||||||||||||||||||||||
| Notes | Number of shares | Amount | Premiums related to share capital | Treasury shares reserve | Currency translation adjustment | Retained earnings (deficit) | Income (Loss) | attributable to shareholders of Cellectis | Non controlling interests | Total Shareholders Equity | ||||||||||||||||||||||||||||||||||
| As of January 1, 2016 | 35,178,614 | 1,759 | 420,682 | (184 | ) | (1,632 | ) | (137,188 | ) | (20,544 | ) | 262,894 | 725 | 263,619 | ||||||||||||||||||||||||||||||
| Net Loss | (35,719 | ) | (35,719 | ) | (35,719 | ) | ||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | 122 | (94 | ) | 28 | (12 | ) | 16 | |||||||||||||||||||||||||||||||||||||
| Total comprehensive income (loss) | 122 | (94 | ) | (35,719 | ) | (35,692 | ) | (12 | ) | (35,704 | ) | |||||||||||||||||||||||||||||||||
| Allocation of prior period loss | (20,544 | ) | 20,544 | |||||||||||||||||||||||||||||||||||||||||
| Treasury shares | (56 | ) | (56 | ) | (56 | ) | ||||||||||||||||||||||||||||||||||||||
| Exercise of share warrants and employee warrants | 152,881 | 8 | 363 | 370 | 370 | |||||||||||||||||||||||||||||||||||||||
| Share based compensation | 12 | 27,344 | 27,344 | 453 | 27,796 | |||||||||||||||||||||||||||||||||||||||
| Other movements | (3 | ) | (3 | ) | (3 | ) | ||||||||||||||||||||||||||||||||||||||
| As of June 30, 2016 | 35,331,495 | 1,767 | 448,388 | (239 | ) | (1,510 | ) | (157,828 | ) | (35,719 | ) | 254,858 | 1,166 | 256,024 | ||||||||||||||||||||||||||||||
| As of January 1, 2017 | 35,335,060 | 1,767 | 473,306 | (307 | ) | 2,500 | (157,695 | ) | (60,776 | ) | 258,794 | 1,779 | 260,574 | |||||||||||||||||||||||||||||||
| Net Loss | (42,653 | ) | (42,653 | ) | (42,653 | ) | ||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | (5,531 | ) | (5,531 | ) | (210 | ) | (5,740 | ) | ||||||||||||||||||||||||||||||||||||
| Total comprehensive income (loss) | (5,531 | ) | (42,653 | ) | (48,183 | ) | (210 | ) | (48,393 | ) | ||||||||||||||||||||||||||||||||||
| Allocation of prior period loss | (60,776 | ) | 60,776 | |||||||||||||||||||||||||||||||||||||||||
| Capital Increase | 466,950 | 23 | (23 | ) | ||||||||||||||||||||||||||||||||||||||||
| Treasury shares | 108 | 108 | 108 | |||||||||||||||||||||||||||||||||||||||||
| Exercise of share warrants and employee warrants | 11 | 60,247 | 3 | 951 | 954 | 954 | ||||||||||||||||||||||||||||||||||||||
| Share based compensation | 12 | 22,528 | 22,528 | 1,548 | 24,076 | |||||||||||||||||||||||||||||||||||||||
| Other movements | (33 | ) | (1 | ) | (34 | ) | (34 | ) | ||||||||||||||||||||||||||||||||||||
| As of June 30, 2017 | 35,862,257 | 1,793 | 496,752 | (199 | ) | (3,022 | ) | (218,495 | ) | (42,653 | ) | 234,167 | 3,118 | 237,286 |
The accompanying notes form an integral part of these unaudited condensed Interim Consolidated Financial
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
Cellectis S.A. (hereinafter Cellectis or we ) is a limited liability company ( soci t anonyme )
registered and domiciled in Paris, France. We are a gene-editing company, employing our core proprietary technologies to develop products in the emerging field of immuno-oncology. Our product candidates, based on gene-edited T-cells that express chimeric antigen receptors, or CARs, seek to harness the power of the immune system to target and eradicate cancers. Our gene-editing technologies allow us to create allogeneic CAR T-cells, meaning they are derived from healthy donors rather than the patients themselves. In addition to our focus on immuno-oncology, we are exploring the use of our gene-editing technologies in other therapeutic
applications, as well as to develop healthier food products for a growing population.
Note 2. Accounting principles
2.1 Basis for preparation
The Interim Consolidated
Financial Statements of Cellectis as of and for the six-month period ended June 30, 2017 were approved by our Board of Directors on August 2, 2017.
Our Interim Consolidated Financial Statements are presented in euros, which is also the functional currency of Cellectis S.A., the parent company.
All financial information (unless indicated otherwise) is presented in thousands of euros.
The Interim Consolidated Financial Statements for the six-month period ended June 30, 2017 have been prepared in
accordance with IAS 34 Interim Financial Reporting, as endorsed by the International Accounting Standards Board ( IASB ).
Consolidated Financial Statements for the quarter ended June 30, 2017 have been prepared using the same accounting policies and methods as those applied for the year ended December 31, 2016.
IFRS include International Financial Reporting Standards ( IFRS ), International Accounting Standards ( the IAS ), as well as the
interpretations issued by the Standards Interpretation Committee ( the SIC ), and the International Financial Reporting Interpretations Committee ( IFRIC ).
Application of new or amended standards or new amendments
The following pronouncements and related amendments have been adopted by us from January 1, 2017 but had no significant impact on the Interim Consolidated
Financial Statements:
Standards, interpretations and amendments issued but not yet effective
The following pronouncements and related amendments are applicable for the accounting periods beginning after January 1, 2018. We do not anticipate that
the adoption of these pronouncements and amendments will have a material impact on our results of operations, financial position or cash flows.
IFRS 15 Revenue from Contracts with Customers establishes a comprehensive framework for determining
whether, how much and when revenue is recognized. It replaces existing revenue recognition guidance, including IAS 18 Revenue. IFRS 15 is effective for annual reporting periods beginning on or after January 1, 2018, with early adoption
Cellectis began its IFRS 15 implementation project with a diagnostic phase. The following different categories of contracts with customers of
Cellectis have been reviewed :
Cellectis will apply IFRS 15 with effect from January 1, 2018 with a retrospective
method. This will lead to a cancellation of collaboration revenue (especially milestone payments) from fiscal years 2014 and 2015 with an opening equity adjustment of 1.6 million for fiscal year 2016. Except for this opening equity, IFRS
15 will not have any impact in the financial statements for fiscal year 2016, and the six-month period ended June 30, 2017.
In January 2016, the IASB issued IFRS 16 ( Leases ), which is effective for annual periods beginning on or after January 1, 2019. This new
standard aligns the accounting treatment of operating leases with that already applied to finance leases (i.e. recognition in the balance sheet of future lease payments and the associated rights of use). Cellectis is assessing the potential impact
on its consolidated financial statements resulting from the application of IFRS 16.
2.2 Consolidated entities and
non-controlling interests
As at December 31, 2016 and for the six-month period ended June 30, 2017, the consolidated group of companies (sometimes referred to as the Group ) includes Cellectis S.A., Cellectis, Inc. and Calyxt, Inc.
As of June 30, 2017, Cellectis, Inc. and Calyxt, Inc. are fully owned by Cellectis S.A.
Note 3. Information concerning the Group s Consolidated Operations
3.1 Revenues and other income
3.1.1 For the six-month periods ended June 30, 2016 and 2017
Revenues by country of origin and other
| For the six-month period ended June 30, | ||||||||
| 2016 | 2017 | |||||||
| in thousands | ||||||||
| From France | 22,601 | 11,973 | ||||||
| From USA | 199 | 257 | ||||||
| Revenues | 22,801 | 12,230 | ||||||
| Research tax credit | 4,728 | 5,449 | ||||||
| Subsidies and other | 110 | 134 | ||||||
| Other income | 4,838 | 5,582 | ||||||
| Total revenues and other income | 27,639 | 17,812 |
| For the six-month period ended June 30, | ||||||||
| 2016 | 2017 | |||||||
| in thousands | ||||||||
| Recognition of previously deferred upfront payments | 10,263 | 6,754 | ||||||
| Other revenues | 11,351 | 4,469 | ||||||
| Collaboration agreements | 21,614 | 11,223 | ||||||
| Licenses | 1,142 | 979 | ||||||
| Products & services | 45 | 28 | ||||||
| Total revenues | 22,801 | 12,230 |
3.1.2 For the three-month periods ended June 30, 2016 and 2017
Revenues by country of origin and other income
| For the three-month period ended June 30, | ||||||||
| 2016 | 2017 | |||||||
| in thousands | ||||||||
| From France | 15,720 | 5,697 | ||||||
| From USA | 102 | 205 | ||||||
| Revenues | 15,823 | 5,902 | ||||||
| Research tax credit | 2,207 | 2,138 | ||||||
| Subsidies and other | 110 | 110 | ||||||
| Other income | 2,317 | 2,248 | ||||||
| Total revenues and other income | 18,140 | 8,150 |
| For the three-month period ended June 30, | ||||||||
| 2016 | 2017 | |||||||
| in thousands | ||||||||
| Recognition of previously deferred upfront payments | 5,555 | 3,502 | ||||||
| Other revenues | 9,775 | 1,810 | ||||||
| Collaboration agreements | 15,330 | 5,312 | ||||||
| Licenses | 562 | 573 | ||||||
| Products & services | (69 | ) | 17 | |||||
| Total revenues | 15,823 | 5,902 |
3.2 Operating expenses
3.2.1 For the six-month periods ended June 30, 2016 and 2017
| For the six-month period ended June 30, | ||||||||
| 2016 | 2017 | |||||||
| in thousands | ||||||||
| Royalty expenses | (723 | ) | (1,086 | ) | ||||
| For the six-month period ended June 30, | ||||||||
| Research and development expenses | 2016 | 2017 | ||||||
| in thousands | ||||||||
| Wages and salaries | (5,568 | ) | (5,626 | ) | ||||
| Social charges on stock option grants | (1,687 | ) | ||||||
| Non-cash stock based compensation expense | (16,214 | ) | (12,540 | ) | ||||
| Personnel expenses | (23,469 | ) | (18,166 | ) | ||||
| Purchases and external expenses | (14,189 | ) | (16,202 | ) | ||||
| Other | (738 | ) | (935 | ) | ||||
| Total research and development expenses | (38,396 | ) | (35,303 | ) | ||||
| For the six-month period ended June 30, | ||||||||
| Selling, general and administrative expenses | 2016 | 2017 | ||||||
| in thousands | ||||||||
| Wages and salaries | (1,729 | ) | (2,802 | ) | ||||
| Social charges on stock option grants | (1,471 | ) | ||||||
| Non-cash stock based compensation expense | (11,583 | ) | (11,535 | ) | ||||
| Personnel expenses | (14,783 | ) | (14,337 | ) | ||||
| Purchases and external expenses | (4,000 | ) | (3,384 | ) | ||||
| Other | (344 | ) | (527 | ) | ||||
| Total selling, general and administrative expenses | (19,127 | ) | (18,248 | ) | ||||
| For the six-month period ended June 30, | ||||||||
| Personnel expenses | 2016 | 2017 | ||||||
| in thousands | ||||||||
| Wages and salaries | (7,297 | ) | (8,427 | ) | ||||
| Social charges on stock option grants | (3,159 | ) | ||||||
| Non-cash stock based compensation expense | (27,796 | ) | (24,076 | ) | ||||
| Total personnel expenses | (38,252 | ) | (32,503 | ) |
3.2.2 For the three-month periods ended June 30, 2016 and 2017
| For the three-month period ended June 30, | ||||||||
| 2016 | 2017 | |||||||
| in thousands | ||||||||
| Royalty expenses | (291 | ) | (512 | ) | ||||
| For the three-month period ended June 30, | ||||||||
| Research and development expenses | 2016 | 2017 | ||||||
| in thousands | ||||||||
| Wages and salaries | (2,904 | ) | (2,831 | ) | ||||
| Social charges on stock option grants | ||||||||
| Non-cash stock based compensation expense | (8,699 | ) | (5,552 | ) | ||||
| Personnel expenses | (11,603 | ) | (8,384 | ) | ||||
| Purchases and external expenses | (7,542 | ) | (8,045 | ) | ||||
| Other | (380 | ) | (481 | ) | ||||
| Total research and development expenses | (19,526 | ) | (16,910 | ) | ||||
| For the three-month period ended June 30, | ||||||||
| Selling, general and administrative expenses | 2016 | 2017 | ||||||
| in thousands | ||||||||
| Wages and salaries | (811 | ) | (1,403 | ) | ||||
| Social charges on stock option grants | ||||||||
| Non-cash stock based compensation expense | (5,684 | ) | (5,735 | ) | ||||
| Personnel expenses | (6,494 | ) | (7,138 | ) | ||||
| Purchases and external expenses | (1,851 | ) | (1,662 | ) | ||||
| Other | (253 | ) | (305 | ) | ||||
| Total selling, general and administrative expenses | (8,600 | ) | (9,105 | ) | ||||
| For the three-month period ended June 30, | ||||||||
| Personnel expenses | 2016 | 2017 | ||||||
| in thousands | ||||||||
| Wages and salaries | (3,715 | ) | (4,235 | ) | ||||
| Social charges on stock option and free shares grants | ||||||||
| Non cash stock based compensation expense | (14,382 | ) | (11,288 | ) | ||||
| Total personnel expenses | (18,097 | ) | (15,522 | ) |
Note 4. Impairment tests
Our cash-generating units ( CGUs ) correspond to the operating/reportable segments: Therapeutics and Plants.
No indicator of impairment has been identified for any intangible or tangible assets in either of the CGUs at the end of June 30, 2016
Note 5. Property, plant and equipment
| Lands and Buildings | Technical equipment | Fixtures, fittings and other equipment | Assets under construction | Total | ||||||||||||||||
| in thousands | ||||||||||||||||||||
| Net book value as of January 1, 2016 | 1,903 | 2,661 | 312 | 168 | 5,043 | |||||||||||||||
| Change in scope | ||||||||||||||||||||
| Additions to tangible assets | 5,754 | 541 | 273 | 4,408 | 10,975 | |||||||||||||||
| Disposal of tangible assets | (1 | ) | (1 | ) | ||||||||||||||||
| Depreciation expense | (306 | ) | (414 | ) | (95 | ) | (815 | ) | ||||||||||||
| Translation adjustments | 4 | (24 | ) | (4 | ) | 18 | (7 | ) | ||||||||||||
| Net book value as of June 30, 2016 | 7,355 | 2,765 | 484 | 4,593 | 15,196 | |||||||||||||||
| Gross value at end of period | 9,490 | 10,966 | 808 | 4,594 | 25,859 | |||||||||||||||
| Accumulated depreciation and impairment at end of period | (2,135 | ) | (8,202 | ) | (324 | ) | (10,663 | ) | ||||||||||||
| Net book value as of January 1, 2017 | 11,798 | 2,712 | 671 | 852 | 16,033 | |||||||||||||||
| Change in scope | ||||||||||||||||||||
| Additions to tangible assets | 32 | 462 | 110 | 933 | 1,536 | |||||||||||||||
| Disposal of tangible assets | (3 | ) | (3 | ) | ||||||||||||||||
| Reclassification | 42 | 16 | (58 | ) | ||||||||||||||||
| Depreciation expense | (459 | ) | (524 | ) | (102 | ) | (1,085 | ) | ||||||||||||
| Translation adjustments | (784 | ) | (132 | ) | (15 | ) | (83 | ) | (1,014 | ) | ||||||||||
| Net book value as of June 30, 2017 | 10,586 | 2,559 | 677 | 1,644 | 15,467 | |||||||||||||||
| Gross value at end of period | 13,527 | 10,286 | 1,146 | 1,644 | 26,603 | |||||||||||||||
| Accumulated depreciation and impairment at end of period | (2,941 | ) | (7,727 | ) | (470 | ) | (11,137 | ) |
For the six-month period ended June 30, 2017, we made investments
in R&D equipment in both the United States of America and France. The addition in tangible assets reflects improvements for Calyxt and Cellectis sites for 0.8 million and other equipment for 0.6 million.
Note 6. Trade receivables and other current assets
6.1 Trade receivables