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InflaRx N.V. Unaudited Condensed Consolidated Financial Statements

Wednesday, May 8, 2024 6 min read
Key Takeaway: InflaRx N.V. published its unaudited condensed consolidated financial statements for the first quarter of 2024, revealing a revenue of €36,037. Despite this income, the company reported a net loss of €9,657,236 and a significant comprehensive loss of €9,682,774. High research and development expenses were highlighted as a notable concern, amounting to €7,301,810, contributing to an operating loss of over €12 million. The company's cash and cash equivalents have seen an increase, reaching €25,103,058 at the end of the quarter.

Market Sentiment Analysis

POSITIVE FACTORS

  • InflaRx generated revenues of €36,037 for Q1 2024.
  • Cash and cash equivalents increased to €25,103,058 by the end of Q1 2024.

CONCERNS & RISKS

  • The company reported a comprehensive loss of €9,682,774 for Q1 2024.
  • Research and development expenses were notably high at €7,301,810, leading to significant operational losses.

Full Press Release Details

Financial Statements
These unaudited condensed financial
statements are consolidated financial statements for the group consisting of InflaRx N.V. and its wholly-owned subsidiaries InflaRx GmbH,
Jena, Germany, and InflaRx Pharmaceuticals Inc., Ann Arbor, Michigan, United States (together, the "Group"). The financial
statements are presented in euros ( ).
InflaRx N.V. is a company
limited by shares, incorporated and domiciled in Amsterdam, The Netherlands.
Its registered office and principal
place of business is in Germany, Jena, Winzerlaer Str. 2.
Index to Unaudited Condensed Consolidated Financial
Statements for the three months ended March 31, 2024
Unaudited condensed consolidated statements of operations and comprehensive loss for the three months ended March 31, 2024 and 2023 F-3
Unaudited condensed consolidated statements of financial position as of March 31, 2024 and December 31, 2023 F-4
Unaudited condensed consolidated statements of changes in shareholders' equity for the three months ended March 31, 2024 and 2023 F-5
Unaudited condensed consolidated statements of cash flows for the three months ended March 31, 2024 and 2023 F-6
Notes to the unaudited condensed consolidated financial statements F-7
1. Summary of significant accounting policies and other disclosures F-7
a) Reporting entity and the Group's structure F-7
b) Basis of preparation F-7
2. Revenues F-8
3. Cost of Sales F-8
4. Research and development expenses F-8
5. Other income F-8
6. Net financial result F-9
7. Inventory F-9
8. Other assets F-9
9. Tax receivable F-10
10. Financial assets and financial liabilities F-10
11. Other liabilities F-10
12. Cash and cash equivalents F-11
13. Share-based payments F-11
a) Equity settled share-based payment arrangements F-11
b) Share-based payment expense recognized F-12
c) Share options exercised F-12
14. Protective foundation F-12
InflaRx N.V. and subsidiaries
Unaudited condensed consolidated statements of
operations and comprehensive loss for the three months ended March 31, 2024 and 2023
For the three months ended March 31,
Note 2024 (unaudited) 2023 (unaudited)
(in , except for share data)
Revenues 2 36,037 -
Cost of sales 3 (220,521 ) -
Gross profit (184,484 ) -
Sales and marketing expenses (1,459,539 ) -
Research and development expenses 4 (7,301,810 ) (14,731,908 )
General and administrative expenses (3,579,150 ) (3,608,554 )
Other income 5 36,323 7,746,189
Other expenses (30 ) (566 )
Operating result (12,488,690 ) (10,594,839 )
Finance income 6 908,426 456,036
Finance expenses 6 (4,632 ) (5,528 )
Foreign exchange result 6 1,824,375 (1,137,310 )
Other financial result 6 103,285 197,808
Income taxes - -
Income (loss) for the period (9,657,236 ) (11,083,833 )
Other comprehensive income (loss) that may be reclassified to profit or loss in subsequent periods:
Exchange differences on translation of foreign currency (25,538 ) (16,785 )
Total comprehensive income (loss) (9,682,774 ) (11,100,618 )
Share information (based on income (loss) for the period)
Weighted average number of shares outstanding 58,883,272 44,771,703
Income (loss) per share (basic/diluted) (0.17 ) (0.25 )
The accompanying notes
are an integral part of these condensed consolidated financial statements.
InflaRx N.V. and subsidiaries
Unaudited condensed consolidated statements
of financial position as of March 31, 2024 and December 31, 2023
Note March 31, 2024 (unaudited) December 31, 2023
(in )
ASSETS
Non-current assets
Property and equipment 284,043 289,577
Right-of-use assets 1,056,966 1,071,666
Intangible assets 52,145 68,818
Other assets 8 244,009 257,267
Financial assets 10 2,490,202 9,052,741
Total non-current assets 4,127,365 10,740,069
Current assets
Inventories 7 11,048,645 11,367,807
Current other assets 8 5,869,744 4,036,650
Trade receivables 8 35,242 -
Tax receivable 9 2,098,276 3,791,564
Other financial assets 10 58,812,905 77,504,518
Cash and cash equivalents 12 25,103,058 12,767,943
Total current assets 102,967,870 109,468,483
TOTAL ASSETS 107,095,235 120,208,552
EQUITY AND LIABILITIES
Equity
Issued capital 7,065,993 7,065,993
Share premium 334,211,338 334,211,338
Other capital reserves 41,910,754 40,050,053
Accumulated deficit (295,785,055 ) (286,127,819 )
Other components of equity 7,356,629 7,382,166
Total equity 94,759,658 102,581,730
Non-current liabilities
Lease liabilities 727,058 745,716
Other liabilities 36,877 36,877
Total non-current liabilities 763,935 782,593
Current liabilities
Trade and other payables 10 7,607,757 11,974,362
Lease liabilities 378,089 374,329
Employee benefits 637,607 1,609,766
Other liabilities 11 2,948,189 2,885,772
Total current liabilities 11,571,642 16,844,229
Total liabilities 12,335,577 17,626,822
TOTAL EQUITY AND LIABILITIES 107,095,235 120,208,552
The accompanying notes are
an integral part of these condensed consolidated financial statements.
InflaRx N.V. and subsidiaries
Unaudited condensed consolidated statements of
changes in shareholders' equity for the three months ended March 31, 2024 and 2023
(in , except for share data) Note Shares outstanding Issued capital Share premium Other capital reserves Accumulated deficit Other components of equity Total equity
Balance as of January 1, 2024 58,883,272 7,065,993 334,211,338 40,050,053 (286,127,819 ) 7,382,166 102,581,730
Loss for the period - - - - (9,657,236 ) - (9,657,236 )
Exchange differences on translation of foreign currency - - - - - (25,538 ) (25,538 )
Total comprehensive loss - - - - (9,657,236 ) (25,538 ) (9,682,774 )
Equity-settled share-based payments 13 - - - 1,860,701 - - 1,860,701
Balance as of March 31, 2024* 58,883,272 7,065,993 334,211,338 41,910,754 (295,785,055 ) 7,356,629 94,759,658
Balance as of January 1, 2023 44,703,763 5,364,452 282,552,633 36,635,564 (243,460,290 ) 7,257,081 88,349,440
Loss for the period - - - - (11,083,833 ) - (11,083,833 )
Exchange differences on translation of foreign currency - - - - - (16,785 ) (16,785 )
Total comprehensive loss - - - - (11,083,833 ) (16,785 ) (11,100,618 )
Equity-settled share-based payments 13 - - - 1,207,048 - - 1,207,048
Share options exercised 71,234 8,548 115,399 - - - 123,947
Balance as of March 31, 2023* 44,774,997 5,373,000 282,668,032 37,842,612 (254,544,123 ) 7,240,295 78,579,816
The accompanying notes are an integral part
of these condensed consolidated financial statements.
InflaRx N.V. and subsidiaries
Unaudited condensed consolidated statements of cash flows
for the three months ended March 31, 2024 and 2023
For the three months ended March 31,
Note 2024 (unaudited) 2023 (unaudited)
(in )
Operating activities
Loss for the period (9,657,236 ) (11,083,833 )
Adjustments for:
Depreciation & amortization of property and equipment, right-of-use assets and intangible assets 123,949 147,969
Net finance income (expense) 6 (2,831,454 ) 488,994
Share-based payment expense 4 1,860,701 1,207,048
Net foreign exchange differences 6 (119,126 ) (106,793 )
Changes in:
Financial assets from government grants 10 - (2,701,076 )
Inventories 7 319,162 -
Trade receivables 10 (35,242 ) -
Employee benefits (972,159 ) (834,713 )
Other assets (126,547 ) 7,515,105
Other liabilities 62,417 15,986
Liabilities from government grants received 10 - (5,033,779 )
Trade and other payables (4,366,605 ) (371,445 )
Interest received 6 875,990 245,971
Interest paid 6 (2,214 ) (5,627 )
Net cash used in operating activities (14,868,364 ) (10,516,193 )
Investing activities
Purchase of intangible assets, property and equipment (16,069 ) (6,046 )
Purchase of current financial assets (3,566,235 ) (25,120,832 )
Proceeds from the maturity of financial assets 30,527,108 21,540,578
Net cash from/(used in) investing activities 26,944,804 (3,586,300 )
Financing activities
Proceeds from exercise of share options - 123,947
Repayment of lease liabilities (85,706 ) (93,744 )
Net cash from/(used in) financing activities (85,706 ) 30,202
Net increase/(decrease) in cash and cash equivalents 11,990,733 (14,072,291 )
Effect of exchange rate changes on cash and cash equivalents 344,381 (95,814 )
Cash and cash equivalents at beginning of period 12,767,943 16,265,355
Cash and cash equivalents at end of period 2 25,103,058 2,097,250
The accompanying notes are an integral part
of these condensed consolidated financial statements.
InflaRx N.V. and subsidiaries
Notes to the unaudited condensed consolidated financial
InflaRx N.V. (the "Company" or "InflaRx")
is a Dutch public company with limited liability (naamloze vennootschap) with its corporate seat in Amsterdam, the Netherlands,
and is registered in the Commercial Register of the Netherlands Chamber of Commerce Business Register under CCI number 68904312. The Company's
registered office is at Winzerlaer Stra e 2 in 07745 Jena, Germany. Since November 10, 2017, InflaRx N.V.'s ordinary shares
have been listed on the Nasdaq Global Select Market under the symbol IFRX.
InflaRx is a biopharmaceutical company focused
on applying its proprietary anti-C5a and C5aR technologies to discover, develop and commercialize first-in-class, potent and specific
inhibitors of the complement activation factor known as C5a and its receptor C5aR. On April 4, 2023, the U.S. Food and Drug Administration
issued an Emergency Use Authorization (EUA) for GOHIBIC (vilobelimab), for the treatment of COVID-19 in critically ill, invasively mechanically
ventilated hospitalized adults. These consolidated financial statements of InflaRx comprise the Company and the Group.
These interim condensed consolidated financial
statements for the three -month reporting period ended March 31, 2024, and 2023 have been prepared in accordance with IAS 34 Interim Financial
Reporting. These condensed consolidated financial statements do not include all the information and disclosures required in the annual
financial statements. Accordingly, this report is to be read in conjunction with the financial statements in the Company's annual
report for the year ended December 31, 2023 on Form 20-F.
The interim condensed consolidated financial
statements were authorized for issue by the board of directors of the Company (the "Board of Directors") on May 7, 2024.
The financial statements are presented in euros
( ). The euro is the functional currency of InflaRx N.V. and InflaRx GmbH. The functional currency of InflaRx Pharmaceuticals Inc.
All financial information presented in euros
have been rounded. Accordingly, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that
precede them or may deviate from other tables.
The accounting policies adopted are consistent
with those followed in the preparation of the Group's annual consolidated financial statements for the year ended December 31, 2023,
except for the adoption of new standards effective as of January 1, 2024, as set out below. The Group has not adopted any other standard,
interpretation or amendment that has been issued but is not yet effective early.
The following amendments were adopted effective
January 1, 2024, and do not have a material impact on the consolidated financial statements of the Group:
following standards issued will be adopted in a future period, and the potential impact, if any, they will have on the Group's
consolidated financial statements is being assessed:
For the three months ended March 31,
2024 (unaudited) 2023 (unaudited)
(in )
Revenues 36,037 -
Total 36,037 -
For the three months ended March 31, 2024, the
Company realized revenues from the product sales of GOHIBIC (vilobelimab) in the amount of 36 thousand. Revenues reported are sales
to end customers (hospitals). Sales to distributors do not constitute revenue for the Company under IFRS 15. All revenues are attributed
to sales made in the United States.
For the three months ended March 31,
2024 (unaudited) 2023 (unaudited)
(in )
Cost of Sales 220,521 -
Total 220,521 -
The cost of sales during the three months ended
March 31, 2024 mainly consists of write-downs of inventories that will expire prior to their expected sale.
Research and development expenses incurred for
the three months ended March 31, 2024 decreased by 7.4 million compared to the three months ended March 31, 2023. This decrease
is primarily due to the fact that we incurred high third-party expenses in the first quarter of 2023 in connection with our efforts to
develop the commercial manufacturing process and to obtain an EUA for GOHIBIC (vilobelimab).
For the three months ended March, 31,
2024 (unaudited) 2023 (unaudited)
(in )
Other income
Income from government grants - 7,734,855
Other 36,323 11,334
Total 36,323 7,746,189
Other income for the three months ended March
31, 2024 amounted to 36 thousand (PY: 7.7 million). The decrease of 7.7 million in income from government grants is
due to the end of the grant period on June 30, 2023.
For the three months ended March 31, 2024
2024 (unaudited) 2023 (unaudited)
(in )
Interest income 908,426 456,036
Interest expenses (439 ) (420 )
Interest on lease liabilities (4,193 ) (5,108 )
Finance Result 903,794 450,508
Foreign exchange income 2,049,582 290,525
Foreign exchange expense (225,207 ) (1,427,835 )
Foreign exchange result 1,824,375 (1,137,310 )
Other financial result 103,285 197,808
Net financial result 2,831,454 (488,994 )
Net financial result increased by 3.3 million
to a gain of 2.8 million for the three months ended March 31, 2024 from a loss of 0.5 million for the three months ended March
31, 2023. This increase is mainly attributable to an increase of interest income on marketable securities by 0.5 million and an
increase of the foreign exchange result of 3.0 million. Other financial result consists of an adjustment for expected credit losses
on marketable securities.
As of March 31, 2024 (unaudited) As of December 31, 2023
(in )
Raw material and supplies 423,560 423,560
Unfinished goods 10,515,518 10,614,159
Finished goods 109,566 330,087
Total 11,048,645 11,367,807
As of March 31, 2024, total write-downs on inventories
amounted to 0.7 million, 0.2 million for the three months ended March 31, 2024. These write-downs were set up due to the expected
expiry of the shelf life.
As of March 31, 2024 (unaudited) As of December 31, 2023
(in )
Non-current other assets
Prepaid expenses 244,009 257,267
Total 244,009 257,267
Current other assets
Prepayments on research & development projects 4,129,342 3,670,167
Prepaid expenses 1,432,090 272,999
Others 308,312 93,482
Total 5,869,744 4,036,648
Total other assets 6,113,753 4,293,915
As of March 31, 2024, prepayments on research
and development projects amounted to 4.1 million compared to 3.7 million as of December 31, 2023, and consist of prepayments
on clinical contracts, especially for INF904.
Prepaid expenses mainly consist of prepaid D&O
insurance expense for the year 2024, which will be recognized into general and administrative expenses pro rata over the year.

Frequently Asked Questions

What are the unaudited condensed financial statements?

They are consolidated financial statements for InflaRx N.V. and its subsidiaries.

When does InflaRx report its financial results?

The financial results are for the three months ended March 31, 2024.

What was the loss for InflaRx in Q1 2024?

InflaRx reported a loss of €9,657,236 for the period.

Where is InflaRx N.V. incorporated?

InflaRx N.V. is incorporated in Amsterdam, The Netherlands.

What was the total equity as of March 31, 2024?

Total equity was €94,759,658 as of March 31, 2024.

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Last updated: May 8, 2024