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Unaudited Condensed Consolidated
Financial Statements
InflaRx N.V. and subsidiaries
consolidated statements of comprehensive loss
for the three months
| in thousand | Note | 2017 | 2018 | |||||||
| Other income and expenses (net) | 28 | 70 | ||||||||
| Research and development expenses | (2,401 | ) | (5,474 | ) | ||||||
| General and administrative expenses | (615 | ) | (3,005 | ) | ||||||
| Loss before interest and income taxes | (2,987 | ) | (8,409 | ) | ||||||
| Finance income | 0 | 265 | ||||||||
| Finance costs | (813 | ) | (2,188 | ) | ||||||
| Finance costs (net) | 6 | (813 | ) | (1,924 | ) | |||||
| Loss for the period | (3,800 | ) | (10,333 | ) | ||||||
| Other comprehensive loss for the period | 0 | 0 | ||||||||
| Total comprehensive loss | (3,799 | ) | (10,332 | ) | ||||||
| Loss per common share in (basic/diluted) | (1.6 | ) | (0.4 | ) |
The notes are an integral
part of these condensed consolidated financial statements.
InflaRx N.V. and subsidiaries
Condensed consolidated statements of financial position
| in thousand | Note | December 31, 2017 | March 31, 2018 | |||||||
| (unaudited) | ||||||||||
| ASSETS | ||||||||||
| Non-current assets | ||||||||||
| Intangible assets | 41 | 39 | ||||||||
| Laboratory and office equipment | 173 | 245 | ||||||||
| Financial assets | 20 | 56 | ||||||||
| Total non-current assets | 233 | 340 | ||||||||
| Current assets | ||||||||||
| Other assets | 3 | 697 | 654 | |||||||
| Cash and cash equivalents | 4 | 123,282 | 115,240 | |||||||
| Total current assets | 123,979 | 115,893 | ||||||||
| Total assets | 124,212 | 116,233 | ||||||||
| EQUITY AND LIABILITIES | ||||||||||
| Equity | ||||||||||
| Issued capital | 2,858 | 2,858 | ||||||||
| Other reserves | 5 | 167,864 | 170,802 | |||||||
| Accumulated deficit | (51,293 | ) | (61,625 | ) | ||||||
| Total equity | 119,429 | 112,034 | ||||||||
| Non-current liabilities | ||||||||||
| Deferred income | 15 | 14 | ||||||||
| Provisions | 2 | 2 | ||||||||
| Total non-current liabilities | 17 | 16 | ||||||||
| Current liabilities | ||||||||||
| Trade payables | 4,464 | 3,133 | ||||||||
| Other liabilities, provisions | 302 | 1,050 | ||||||||
| Total current liabilities | 4,766 | 4,183 | ||||||||
| Total equity and liabilities | 124,212 | 116,233 |
The notes are an integral
part of these condensed consolidated financial statements.
InflaRx N.V. and subsidiaries
consolidated statements of changes in equity
| Other reserves | ||||||||||||||||||||||||||||||
| in thousand | Note | Issued capital | Capital reserve | currency translation | share-based payments | Accumulated deficit | Own shares | Total equity | ||||||||||||||||||||||
| Balance as of January 1, 2017 | 31 | 0 | 9 | 1,675 | (27,055 | ) | (350 | ) | (25,690 | ) | ||||||||||||||||||||
| Comprehensive loss | ||||||||||||||||||||||||||||||
| Loss for the period | (3,800 | ) | (3,800 | ) | ||||||||||||||||||||||||||
| Total comprehensive loss | 0 | 0 | 0 | 0 | (3,800 | ) | 0 | (3,800 | ) | |||||||||||||||||||||
| Recognition of equity-settled share-based payments | 5 | 710 | 710 | |||||||||||||||||||||||||||
| Balance as of March 31, 2017 | 31 | 0 | 9 | 2,385 | (30,854 | ) | (350 | ) | (28,779 | ) | ||||||||||||||||||||
| Balance as of January 1, 2018 | 2,858 | 161,639 | 0 | 6,225 | (51,293 | ) | 0 | 119,429 | ||||||||||||||||||||||
| Comprehensive loss | ||||||||||||||||||||||||||||||
| Loss for the period | (10,333 | ) | (10,333 | ) | ||||||||||||||||||||||||||
| Exchange differences | 0 | 0 | ||||||||||||||||||||||||||||
| Total comprehensive loss | 0 | 0 | 0 | 0 | (10,333 | ) | 0 | (10,332 | ) | |||||||||||||||||||||
| Recognition of equity-settled share-based payments | 5 | 2,937 | 2,937 | |||||||||||||||||||||||||||
| Balance as of March 31, 2018 | 2,859 | 161,639 | 0 | 9,163 | (61,625 | ) | 0 | 112,034 |
The notes are an integral
part of these condensed consolidated financial statements.
InflaRx N.V. and subsidiaries
consolidated statement of cash flows
for the three months
| in thousand | Note | 2017 | 2018 | |||||||
| Cash flow from Operations | ||||||||||
| Loss before income taxes | (3,800 | ) | (10,333 | ) | ||||||
| Reconciliation from result before taxes to net cash flows | ||||||||||
| Depreciation/amortization of intangible assets, laboratory and office equipment | 10 | 22 | ||||||||
| Share based payment expense | 5 | 710 | 2,938 | |||||||
| Finance Income | 6 | 0 | (265 | ) | ||||||
| Finance costs | 6 | 813 | 2,188 | |||||||
| other non-cash adjustments | (4 | ) | (25 | ) | ||||||
| Change in Provisions and Government Grants | 697 | 977 | ||||||||
| Working capital adjustments | ||||||||||
| Change in Trade payables and other liabilities | (1,225 | ) | (1,561 | ) | ||||||
| Change in other assets | 73 | 43 | ||||||||
| Interest received | 0 | 265 | ||||||||
| Cash flow from Operations | (2,727 | ) | (5,751 | ) | ||||||
| Cash flow from investing activities | ||||||||||
| Cash outflow from the purchase of intangible assets, laboratory and office equipment | (26 | ) | (93 | ) | ||||||
| Cash outflow for the investment in non-current financial assets | 0 | (36 | ) | |||||||
| Net cash flows used in investing activities | (26 | ) | (129 | ) | ||||||
| Financing activities | ||||||||||
| Proceeds from issuance of preferred shares | 1,500 | 0 | ||||||||
| Net cash flows from financing activities | 1,500 | 0 | ||||||||
| Effect of exchange rate changes | 0 | (2,163 | ) | |||||||
| Change in cash and cash equivalents | (1,252 | ) | (8,042 | ) | ||||||
| Net change in cash and cash equivalents | (1,252 | ) | (8,042 | ) | ||||||
| Cash and cash equivalents at beginning of period | 29,117 | 123,282 | ||||||||
| Cash and cash equivalents at end of period | 27,864 | 115,240 |
The notes are an integral
part of these condensed consolidated financial statements.
InflaRx N.V. and subsidiaries
Index to notes to the condensed consolidated
financial statements
| (1) | Reporting entity | 2 |
| (2) | Basis for preparation and changes to Group's accounting policies | 2 |
| (3) | Other assets | 4 |
| (4) | Cash and cash equivalents | 4 |
| (5) | Share-based payments | 4 |
| (6) | Finance costs (net) | 5 |
| (7) | Related parties | 7 |
| (8) | Significant Events After the Reporting Date | 7 |
InflaRx N.V. and subsidiaries
Notes to the interim condensed consolidated
financial statements
The interim condensed consolidated financial
statements of InflaRx N.V. (in the following, "InflaRx" or the "Company") and its subsidiaries (collectively,
the Group) for the three months ended 31 March, 2018 were authorised for issue in accordance with a resolution of the directors
InflaRx N.V., is a Dutch public company
with limited liability (naamloze vennootschap), incorporated in the Netherlands (Commercial Register of The Netherlands Chamber
of Commerce Business Register under CCI number 68904312) and domiciled in Jena, Germany. The registered office is located in Jena,
Germany, Winzerlaer Stra e 2. The Company`s shares are publicly traded at NASDAQ Global Select Market under the symbol IFRX.
InflaRx is a clinical-stage biopharmaceutical
company focused on applying its proprietary technology to discover and develop first-in-class potent and specific inhibitors of
the complement activation factor known as C5a.
These unaudited condensed consolidated financial
statements (in the following "financial statements") of InflaRx comprise the Company and its subsidiary InflaRx GmbH,
and, since January 5, 2018, InflaRx N.V.'s wholly-owned subsidiary InflaRx Pharmaceutical Inc., a Michigan corporation,
which was founded on January 5, 2018 (together, the "Group"). InflaRx GmbH is a clinical-stage biopharmaceutical
company focused on applying its proprietary technology to discover and develop first-in-class, potent and specific inhibitors of
the complement activation factor known as C5a.
The unaudited condensed consolidated financial
statements for the three months ended March 31, 2018 have been prepared in accordance with IAS 34 Interim Financial Reporting.
The condensed consolidated financial statements do not include all the information and disclosures required in the annual financial
statements, and should be read in conjunction with the Group's annual consolidated financial statements as at December 31,
This is the first set of the Group's
financial statements where IFRS 15 and IFRS 9 have been applied, as described in section d).
The preparation of the 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 financial statements,
the critical judgments made by management in applying the Group's accounting policies and the key accounting estimates were
the same as those that applied to the annual consolidated financial statements as at and for the year ended December 31, 2017.
These financial statements are presented
in thousands of Euro, which is also the functional currency of InflaRx N.V. and InflaRx GmbH. The functional currency of InflaRx
Pharmaceutical Inc. is US Dollar. All financial information presented in Euro has been rounded to the nearest thousand (abbreviated
) or million (abbreviated million).
The accounting policies adopted in the preparation
of the financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial
statements for the year ended December, 31 2017, except for the adoption of new standards effective as of January 1, 2018.
The Group has not early adopted any other
standard, interpretation or amendment that has been issued but is not yet effective.
The Group applies, for the first time, IFRS
15 Revenue from Contracts with Customers and IFRS 9 Financial Instruments, that require restatement of previous financial statements.
As required by IAS 34, the nature and effect of these changes are disclosed below. Several other amendments and interpretations
apply for the first time in 2018, but do not have an impact on the financial statements of the Group.
IFRS 15, Revenue from Contracts with Customers, replaces all
current standards and interpretations dealing with revenue recognition and introduces a five-step model to account for revenue.
As the Group is currently not generating revenues, the Group may only be affected by IFRS 15 in the future when entering into collaborative
arrangements or similar deals.
IFRS 9 contains a new classification and measurement approach
for financial assets that reflects the business model in which assets are managed and their cash flow characteristics. IFRS 9 further
replaces the incurred loss' model in IAS 39 with a forward-looking expected credit loss' (ECL) model.
This will require considerable judgement about how changes in economic factors affect ECLs, which will be determined on a probability-weighted
basis. IFRS 9 will require extensive new disclosures, in particular about hedge accounting, credit risk and ECLs.
Because the Group is currently holding only immaterial non-current
financial assets, cash and cash equivalents, no trade receivables and no derivative financial instruments or financial liabilities,
the impact of IFRS 9 is determined to be nil, except for additional disclosures required. The Group applies IFRS 9 with an initial
application date of January 1, 2018.
The consolidated statement of financial
position as at January 1, 2018 was not restated, as the impact of IFRS 9 in the absence of material financial instruments
The following amendments, applicable to reporting periods started
January 1, 2018, do not have any impact on the Group's financial statements:
The following standards and amendments, applicable to reporting
periods starting January 1, 2019, and later, are not expected to have any material impact on the Group's financial statements,
except as described below the table:
IFRS 16 Leases replaces existing leases guidance, including IAS
17 Leases, IFRIC 4 Determining whether an Arrangement contains a Lease, SIC-15 Operating Leases - Incentives and SIC-27 Evaluating
the Substance of Transactions Involving the Legal Form of a Lease. The standard is effective for annual periods beginning on or
after January 1, 2019. Early adoption is permitted for entities that apply IFRS 15 at or before the date of initial application
of IFRS 16. So far, the most significant impact identified is that the Group will recognize new assets and liabilities for its
operating leases. As at December 31, 2017, the Group's future minimum lease payments under non-cancellable operating leases