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Exhibi 99.1 UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2023 GH RESEARCH PLC Unaudited condensed consolidated interim statement of comprehensive income Three months

Key Takeaway: GH Research PLC reported its unaudited condensed consolidated interim financial statements for the three months ending March 31, 2023. The company recorded an increased loss from operations of $10.9 million compared to $5.8 million in the same period last year, driven largely by rising research and development costs. While cash and cash equivalents remain substantial at $105 million, foreign exchange losses and operating expenses have contributed to a comprehensive loss of $8.5 million for the period. Despite these challenges, the company believes it has adequate financial resources to manage its operations over the next year.

Market Sentiment Analysis

POSITIVE FACTORS

  • The company maintains significant cash reserves of $105 million.
  • Marketable securities valued at $87 million provide liquidity.
  • The board believes sufficient financial resources are available for the next twelve months.

CONCERNS & RISKS

  • Net loss for the period increased to $10.9 million from $5.8 million in the previous year.
  • Operating expenses, particularly in research and development, rose significantly.
  • Foreign exchange losses negatively impacted comprehensive income.

Full Press Release Details

UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2023
Unaudited condensed consolidated interim statement of comprehensive income
Three months ended March 31,
2023 2022
Note $'000 $'000
Operating expenses
Research and development 3 (7,306 ) (4,714 )
General and administration 3 (3,113 ) (3,292 )
Loss from operations (10,419 ) (8,006 )
Finance income 4 1,489 -
Finance expense 4 (171 ) -
Expected credit loss (199 ) -
Foreign exchange (loss)/gain (1,637 ) 2,243
Total other (expense)/income (518 ) 2,243
Loss before tax (10,937 ) (5,763 )
Tax charge/(credit) - -
Loss for the period (10,937 ) (5,763 )
Other comprehensive income/(expense)
Items that may be reclassified to profit or loss
Fair value movement on marketable securities 724 -
Currency translation adjustment 1,676 (2,261 )
Total comprehensive loss for the period (8,537 ) (8,024 )
Attributable to owners:
Loss for the period (10,937 ) (5,763 )
Comprehensive loss for the period (8,537 ) (8,024 )
Loss per share
Basic and diluted loss per share (in USD) 15 (0.210 ) (0.111 )
Unaudited condensed consolidated interim statement of financial position
At March 31, At December 31,
2023 2022
Note $'000 $'000
ASSETS
Current assets
Cash and cash equivalents 5 105,082 165,955
Other financial assets 5 54,057 -
Marketable securities 6 3,682 -
Other current assets 7 1,896 2,586
Total current assets 164,717 168,541
Non-current assets
Marketable securities 6 83,321 85,724
Property, plant and equipment 8 1,221 97
Total non-current assets 84,542 85,821
Total assets 249,259 254,362
LIABILITIES AND EQUITY
Current liabilities
Trade payables 9 2,928 1,868
Lease liability 10 334 -
Other current liabilities 11 3,376 2,678
Total current liabilities 6,638 4,546
Non-current liabilities
Lease liability 10 791 -
Total non-current liabilities 791 -
Total liabilities 7,429 4,546
Equity attributable to owners
Share capital 1,301 1,301
Additional paid-in capital 291,448 291,448
Other reserves 3,870 2,595
Foreign currency translation reserve (11,359 ) (13,035 )
Accumulated deficit (43,430 ) (32,493 )
Total equity 241,830 249,816
Total liabilities and equity 249,259 254,362
Unaudited condensed consolidated interim statement of changes in equity
Attributable to owners
Share capital Additional paid-in capital Other reserves Foreign currency translation reserve Accumulated deficit Total
$'000 $'000 $'000 $'000 $'000 $'000
At January 1, 2022 1,301 291,448 366 (5,903 ) (10,037 ) 277,175
Loss for the period - - - - (5,763 ) (5,763 )
Translation adjustment - - - (2,261 ) - (2,261 )
Total comprehensive loss for the period - - - (2,261 ) (5,763 ) (8,024 )
Share-based compensation expense - - 327 - - 327
Total transactions with owners - - 327 - - 327
At March 31, 2022 1,301 291,448 693 (8,164 ) (15,800 ) 269,478
At January 1, 2023 1,301 291,448 2,595 (13,035 ) (32,493 ) 249,816
Loss for the period - - - - (10,937 ) (10,937 )
Other comprehensive income - - 724 1,676 - 2,400
Total comprehensive loss for the period - - 724 1,676 (10,937 ) (8,537 )
Share-based compensation expense - - 551 - - 551
Total transactions with owners - - 551 - - 551
At March 31, 2023 1,301 291,448 3,870 (11,359 ) (43,430 ) 241,830
Unaudited condensed consolidated interim statement of cash flows
Three months ended March 31,
2023 2022
$'000 $'000
Cash flows from operating activities
Loss for the period (10,937 ) (5,763 )
Depreciation 77 11
Share-based compensation expense 551 327
Finance income (1,489 ) -
Finance expense 171 -
Expected credit loss 199 -
Foreign exchange loss/(gain) 1,637 (2,243 )
Movement in working capital 2,473 1,667
Cash flows used in operating activities (7,318 ) (6,001 )
Finance expense paid (246 ) -
Finance income received 679 -
Net cash used in operating activities (6,885 ) (6,001 )
Cash flows used in investing activities
Purchase of other financial assets (54,000 ) -
Purchase of property, plant and equipment (22 ) (10 )
Cash flows used in investing activities (54,022 ) (10 )
Cash flows used in financing activities
Payment of lease liability (70 ) -
Net decrease in cash (60,977 ) (6,011 )
Cash at the beginning of the period 165,955 276,776
Impact of foreign exchange on cash 104 (15 )
Cash at the end of the period 105,082 270,750
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
GH Research PLC (the "Company") was incorporated on March 29, 2021. The registered office of the Company is located at 28 Baggot Street Lower, Dublin 2, Ireland.
The Company and its subsidiary, GH Research Ireland Limited, (together the "Group" or "GH Research") are a clinical-stage biopharmaceutical company dedicated to transforming the treatment of psychiatric and
neurological disorders. Its initial focus is on developing the novel and proprietary mebufotenin (5-methoxy-N,N-dimethyltryptamine, or 5-MeO-DMT) therapies for the treatment of patients with Treatment Resistant Depression, or TRD. Its portfolio
currently includes GH001, a proprietary inhalable mebufotenin product candidate, GH002, a proprietary intravenous mebufotenin product candidate, and GH003, a proprietary intranasal mebufotenin product candidate.
These unaudited condensed consolidated interim financial statements were presented to the board of directors and approved by them for issue on May 11, 2023.
Basis of preparation
Compliance with International Financial Reporting Standards
The unaudited condensed consolidated interim financial statements for the three months ended March 31, 2023 have been prepared in accordance with IAS 34 "Interim Financial Reporting". The unaudited condensed
consolidated interim financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements for the year ended December 31, 2022 which
were prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). These unaudited condensed consolidated interim financial statements are presented in U.S. dollar
("USD" or "$"), which is the Company's functional currency and the Group's presentation currency.
The financial information presented in this interim report does not represent full statutory accounts as defined by the Companies Act 2014. The statutory accounts of GH Research PLC for the year ended December 31,
2022, are expected to be filed with the Companies Registration Office by November 26, 2023.
New and amended IFRS standards
There are no new IFRS standards, amendments to standards or interpretations that are mandatory for the financial year beginning on January 1, 2023, that are relevant to the Group and that have had any material impact
in the interim period. New standards, amendments to standards and interpretations that are not yet effective, have been deemed by the Group as currently not relevant and are not listed here.
GH Research is a clinical-stage biopharmaceutical company developing innovative therapeutics. The Group is exposed to all risks inherent in establishing and developing its business, including the substantial
uncertainty that current projects will succeed. Research and development expenses have been incurred from the start of the Group's activities, generating negative cash flows from operating activities since formation.
Since its incorporation, the Group has funded its growth through capital increases. The Group has no bank loans or other debt outstanding, except lease liabilities, as of March 31, 2023. As a result, the Group is not
exposed to liquidity risk through requests for early repayment of loans.
As of March 31, 2023, the Group's cash and cash equivalents amounted to $105.1 million (December 31, 2022: $166.0 million). The Group also held marketable securities of $87.0 million and other financial assets of
$54.1 million as of March 31, 2023, (December 31, 2022: marketable securities of $85.7 million and other financial assets of $nil). The Group's marketable securities are quoted in active markets and are an additional source of liquidity.
The Board of Directors believes that the Group has sufficient financial resources available to cover its planned cash outflows for at least the next twelve months from the date of issuance of these unaudited
condensed consolidated interim financial statements. The Group, therefore, continues to adopt the going concern basis in preparing its unaudited condensed consolidated interim financial statements.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (continued)
Use of estimates and judgments
The preparation of the unaudited condensed consolidated interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the
reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
In preparing these unaudited condensed consolidated interim financial statements, the significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty
included those that applied to the consolidated financial statements for the year ended December 31, 2022.
Significant accounting policies
The accounting policies, presentation and methods of computation followed in the unaudited condensed consolidated interim financial statements are consistent with those applied in the Group's most recent annual
financial statements and have been applied consistently to all periods presented in the unaudited condensed consolidated interim financial statements except for the amendments and new accounting policies set out below.
Other financial assets represent money market funds with a weighted average maturity of more than 90 days and are carried at fair value through profit or loss as the cash flows from these funds do not represent
solely payments of principal and interest.
Leases and right-of-use assets
The Group recognizes a right-of-use ("ROU") asset and a corresponding lease liability for all arrangements in which it is a lessee, except for leases with a term of 12 months or less (short-term leases) and low-value
leases. Under IFRS 16 the Group recognizes a ROU asset and a lease liability at the lease commencement date at the present value of the future lease payments, discounted at the Group's incremental borrowing rate. The ROU asset is subsequently
depreciated using the straight-line method over the lease term within depreciation expenses and an interest expense on lease liabilities is recognized within finance expense in the Group's unaudited condensed consolidated interim income statement.
The interest expense is calculated based on the incremental borrowing rate of the Group.
For short-term or low value leases, the Group recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.
Current and deferred income tax
The interim income tax expense is calculated based on the Company's estimate of the weighted average effective annual income tax rate expected for the full year. The current and deferred income tax charge was $nil
for the three months ended March 31, 2023 and 2022, which is in line with the Company's estimate for the full year. No deferred tax assets have been recognized as there is no certainty that sufficient taxable profits will be generated within the
required timeframe to be able to utilize these tax loss carry-forwards in full.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (continued)
The following table provides the consolidated statement of comprehensive income classification of our expense by nature:
Three months ended March 31,
2023 2022
$'000 $'000
External research and development expenses 5,825 3,883
Employee expenses 1 1,419 798
Depreciation 10 8
Other expenses 52 25
Total research and development expenses 7,306 4,714
External costs 2,270 2,749
Employee expenses 2 776 540
Depreciation 67 3
Total general and administrative expenses 3,113 3,292
Total operating expenses 10,419 8,006
1Included in employee expenses is share based compensation expense of $0.3 million and $0.2 million for the three months ended March 31, 2023 and 2022, respectively, relating to employees in the research
and development department.
2 Included in employee expenses is share based compensation expense of $0.2 million and $0.2 million for the three months ended March 31, 2023 and 2022, respectively, relating to employees in the general
and administrative department.
Foreign exchange loss/gain
Foreign exchange loss of $1.6 million for the three months ended March 31, 2023 (foreign exchange gain of $2.2 million for the three months ended March 31, 2022) consists primarily of losses related to the
translation of the U.S. dollar cash and other financial assets balance into euro in the accounts of the Company's subsidiary, GH Research Ireland Limited, whose functional currency is euro as explained in the Group's consolidated financial
statements for the year ended December 31, 2022.
At March 31, 2023, if the U.S. dollar had weakened/strengthened by 10% against the euro with all other variables held constant, the loss before tax for the three months ended March 31, 2023, would have been $8.2
million higher/lower, mainly related to the translation of cash and other financial assets held in U.S. dollar in the Company's subsidiary, GH Research Ireland Limited.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (continued)
Three months ended March 31,
2023 2022
$'000 $'000
Finance income
Gain on cash equivalents and other financial assets at fair value through profit and loss 465 -
Interest income under effective interest rate method at fair value through other comprehensive income ("FVOCI") 1,024 -
Finance income 1,489 -
Finance expense
Finance expense on investments (153 ) -
Finance expense on lease liability (18 ) -
Finance expense (171 ) -
March 31, 2023 December 31, 2022
$'000 $'000
Cash at bank and in hand 69,002 130,252
Cash equivalents 36,080 35,703
105,082 165,955
During the period ended March 31, 2023, a further investment of $54.0 million was made in a money market fund. This investment was classified as other financial assets.
Marketable securities
$'000
Fair value
At January 1, 2023 85,724
Additions -
Accrued interest 1,024
Interest received (270 )
Fair value gain 525
At March 31, 2023 87,003
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (continued)
The Group holds government and corporate listed bonds which comprise marketable securities measured at FVOCI. These marketable securities had a fair value of $87.0 million at March 31, 2023, (December 31, 2022: $85.7
million). The impairment loss allowance for expected credit losses at the reporting date was $0.3 million (December 31, 2022: $0.1 million). At March 31, 2023, the maturity of the Group's marketable securities ranges from 10 months to four years.
This maturity has been reflected in the allocation of current and non-current assets in the unaudited condensed consolidated interim statement of financial position.
The Group is exposed to credit risk on its cash and cash equivalents, other financial assets and marketable securities in the event of default of the counterparties. The Group's cash balance is maintained with well
established, highly rated financial institutions. The Group's marketable securities are mainly comprised of investment grade bonds. The Group monitors the credit risk of its investments on a regular basis.
The fair value movement on marketable securities through other comprehensive income for the three months ended March 31, 2023, is comprised of a fair value gain on marketable securities of $0.5 million and an
increase in expected credit losses associated with those marketable securities of $0.2 million.
Other current assets primarily represent prepayments and VAT receivable.
Property, plant and equipment increased to $1.2 million at March 31, 2023, from $0.1 million at December 31, 2022, an increase of $1.1 million. This was due to a lease for office space which the Group entered into
during the period. The term of the lease is four years and nine months and annual cashflows associated with it are $0.3 million.
Right of Use Asset - Office
$'000
At January 1, 2023 -
Additions 1,179
Depreciation expense (62 )
At March 31, 2023 1,117
At the lease commencement date, a ROU asset was recognized at the present value of the future lease payments, discounted at the Group's incremental borrowing rate.
Trade payables primarily represents amounts incurred for the provision of manufacturing, research and consulting services and legal and professional fees, which have been billed and are outstanding at the end of the
period. Trade payables are due to be settled at different times within 12 months.
At March 31, 2023, the Group's lease liability amounted to $1.1 million relating to the lease of an office as explained in Note 8, "Property, plant and equipment".
Other current liabilities primarily represent accruals for operating expenses and employee tax payable.
As of March 31, 2023, there were no material contingencies which required adjustment or disclosure in the unaudited condensed consolidated interim financial statements (2022: none).
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (continued)
In June 2021, the Company adopted a share option plan referred to herein as the Share Option Plan under which grants of options are made to eligible participants. The Company has reserved 1,202,734 ordinary shares
for future issuance under the Share Option Plan, which include ordinary shares pursuant to share-based equity awards issued to date. As of March 31, 2023, the Company has 718,818 ordinary shares available for the future issuance of share-based
Under the Share Option Plan, the options may be settled only in ordinary shares of the Company. Therefore, the grants of share options under the Share Option Plan have been accounted for as equity-settled under IFRS
2. As such, the Company records a charge for the vested portion of award grants and for partially earned but non-vested portions of award grants.
During the three months ended March 31, 2023, the Company granted the option to purchase 22,320 ordinary shares to employees which were in line with the general terms of the Share Option Plan.
The following table summarizes the share option awards outstanding as of March 31, 2023:
Average exercise price per share in USD Number of awards Weighted average remaining life in years
At December 31, 2022 15.32 461,596 7.14
Granted 9.66 22,320 7.86
At March 31, 2023 15.06 483,916 6.94
None of the awards outstanding as of March 31, 2023 were exercisable and they expire through 2031. As of March 31, 2023, 88,569 awards are vested and generally subject to a 2 year service condition.

Frequently Asked Questions

What were the total operating expenses for Q1 2023?

Total operating expenses reached $10,419,000 for Q1 2023.

How much cash did GH Research have by March 31, 2023?

GH Research had $105.1 million in cash and cash equivalents by March 31, 2023.

What was the comprehensive loss for Q1 2023?

The total comprehensive loss for the period was $8,537,000.

Did GH Research incur any finance income in Q1 2023?

Yes, GH Research reported finance income of $1,489,000 in Q1 2023.

What is the focus of GH Research's development efforts?

GH Research focuses on developing mebufotenin therapies for psychiatric disorders.

Last updated: May 11, 2023