Full Press Release Details
PROQR THERAPEUTICS N.V.
Condensed Consolidated Financial Statements
| PAGE | ||||
| Unaudited Condensed Consolidated Statement of Financial Position at December 31, 2017 and December 31, 2016 | 1 | |||
| Unaudited Condensed Consolidated Statement of Comprehensive Loss for the Years and Three Month Periods ended December 31, 2017 and 2016 | 2 | |||
| Unaudited Condensed Consolidated Statement of Changes in Equity for the Years ended December 31, 2017 and 2016 | 3 | |||
| Unaudited Condensed Consolidated Statement of Cash Flows for the Years and Three Month Periods ended December 31, 2017 and 2016 | 4 | |||
| Notes to Unaudited Condensed Consolidated Financial Statements | 5 |
Unaudited Condensed Consolidated Financial Statements
PROQR THERAPEUTICS N.V.
Consolidated Statement of Financial Position
| December 31, 2017 | December 31, 2016 | |||||||
| 1,000 | 1,000 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | 48,099 | 59,200 | ||||||
| Prepayments and other receivables | 2,064 | 2,420 | ||||||
| Social securities and other taxes | 396 | 395 | ||||||
| Total current assets | 50,559 | 62,015 | ||||||
| Property, plant and equipment | 2,505 | 3,438 | ||||||
| Intangible assets | 39 | 90 | ||||||
| Total assets | 53,103 | 65,543 | ||||||
| Equity and liabilities | ||||||||
| Equity | ||||||||
| Equity attributable to owners of the Company | 39,363 | 53,136 | ||||||
| Non-controlling interests | (38 | ) | ||||||
| Total equity | 39,325 | 53,136 | ||||||
| Current liabilities | ||||||||
| Borrowings | 1,960 | |||||||
| Trade payables | 546 | 328 | ||||||
| Social securities and other taxes | 1,019 | 312 | ||||||
| Pension premiums | 13 | |||||||
| Deferred income | 347 | |||||||
| Other current liabilities | 4,622 | 6,057 | ||||||
| Total current liabilities | 8,494 | 6,710 | ||||||
| Borrowings | 5,284 | 5,697 | ||||||
| Total liabilities | 13,778 | 12,407 | ||||||
| Total equity and liabilities | 53,103 | 65,543 |
The notes are an integral part of these condensed consolidated financial statements.
PROQR THERAPEUTICS | ZERNIKEDREEF 9 | 2333 CK LEIDEN | THE NETHERLANDS |
+31 88 166 7000 | WWW.PROQR.COM
Unaudited Condensed Consolidated Financial Statements
PROQR THERAPEUTICS N.V.
Consolidated Statement of Profit or Loss and OCI
( in thousands, except share and per share data)
| Three month period ended December 31, | Year ended December 31, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| 1,000 | 1,000 | 1,000 | 1,000 | |||||||||||||
| Other income | 511 | 103 | 1,495 | 1,828 | ||||||||||||
| Research and development costs | (8,345 | ) | (8,100 | ) | (31,153 | ) | (31,923 | ) | ||||||||
| General and administrative costs | (2,891 | ) | (2,260 | ) | (10,840 | ) | (9,478 | ) | ||||||||
| Total operating costs | (11,236 | ) | (10,360 | ) | (41,993 | ) | (41,401 | ) | ||||||||
| Operating result | (10,725 | ) | (10,257 | ) | (40,498 | ) | (39,573 | ) | ||||||||
| Finance income and expense | (586 | ) | 1,438 | (3,175 | ) | 470 | ||||||||||
| Result before corporate income taxes | (11,311 | ) | (8,819 | ) | (43,673 | ) | (39,103 | ) | ||||||||
| Income taxes | (2 | ) | ||||||||||||||
| Result for the period | (11,311 | ) | (8,819 | ) | (43,675 | ) | (39,103 | ) | ||||||||
| Other comprehensive income | 37 | (16 | ) | 151 | (16 | ) | ||||||||||
| Total comprehensive income (attributable to owners of the Company) | (11,274 | ) | (8,835 | ) | (43,524 | ) | (39,119 | ) | ||||||||
| Result attributable to | ||||||||||||||||
| Owners of the Company | (11,283 | ) | (8,819 | ) | (43,637 | ) | (39,103 | ) | ||||||||
| Non-controlling interests | (28 | ) | (38 | ) | ||||||||||||
| (11,311 | ) | (8,819 | ) | (43,675 | ) | (39,103 | ) | |||||||||
| Share information | ||||||||||||||||
| Weighted average number of shares outstanding 1 | 28,695,362 | 23,346,856 | 25,374,807 | 23,346,507 | ||||||||||||
| Earnings per share attributable to owners of the Company (expressed in Euro per share) | ||||||||||||||||
| Basic loss per share 1 | (0.39 | ) | (0.38 | ) | (1.72 | ) | (1.67 | ) | ||||||||
| Diluted loss per share 1 | (0.39 | ) | (0.38 | ) | (1.72 | ) | (1.67 | ) |
The notes are an integral part of these condensed consolidated financial statements.
PROQR THERAPEUTICS | ZERNIKEDREEF 9 | 2333 CK LEIDEN | THE NETHERLANDS |
+31 88 166 7000 | WWW.PROQR.COM
PROQR THERAPEUTICS N.V.
Unaudited Condensed Consolidated Statement of Changes in Equity
| Attributable to owners of the Company | ||||||||||||||||||||||||||||||||||||
| Number of shares | Share Capital | Share Premium | Equity Settled Employee Benefit Reserve | Translation Reserve | Accumulated Deficit | Total | Non-controlling interests | Total Equity | ||||||||||||||||||||||||||||
| 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | |||||||||||||||||||||||||||||
| Balance at January 1, 2016 | 23,345,965 | 934 | 123,595 | 1,899 | 1 | (36,630 | ) | 89,799 | 89,799 | |||||||||||||||||||||||||||
| Result for the period | (39,103 | ) | (39,103 | ) | (39,103 | ) | ||||||||||||||||||||||||||||||
| Other comprehensive income | (16 | ) | (16 | ) | (16 | ) | ||||||||||||||||||||||||||||||
| Recognition of share-based payments | 2,454 | 2,454 | 2,454 | |||||||||||||||||||||||||||||||||
| Share options exercised | 891 | 0 | 2 | 2 | 2 | |||||||||||||||||||||||||||||||
| Balance at December 31, 2016 | 23,346,856 | 934 | 123,597 | 4,353 | (15 | ) | (75,733 | ) | 53,136 | 53,136 | ||||||||||||||||||||||||||
| Result for the period | (43,637 | ) | (43,637 | ) | (38 | ) | (43,675 | ) | ||||||||||||||||||||||||||||
| Other comprehensive income | 151 | 151 | 151 | |||||||||||||||||||||||||||||||||
| Recognition of share-based payments | 4,024 | 4,024 | 4,024 | |||||||||||||||||||||||||||||||||
| Issue of ordinary shares | 8,573,975 | 343 | 25,342 | 25,685 | 25,685 | |||||||||||||||||||||||||||||||
| Issue of treasury shares | 4,503,149 | 180 | (180 | ) | 0 | 0 | ||||||||||||||||||||||||||||||
| Share options exercised | 1,034 | 0 | 4 | 4 | 4 | |||||||||||||||||||||||||||||||
| Balance at December 31, 2017 | 36,425,014 | 1,457 | 148,763 | 8,377 | 136 | (119,370 | ) | 39,363 | (38 | ) | 39,325 |
The notes are an integral part of these condensed consolidated financial statements
PROQR THERAPEUTICS N.V.
Unaudited Condensed Consolidated Statement of Cash Flows
| Three month period ended December 31, | Year ended December 31, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| 1,000 | 1,000 | 1,000 | 1,000 | |||||||||||||
| Cash flows from operating activities | ||||||||||||||||
| Net result | (11,274 | ) | (8,835 | ) | (43,524 | ) | (39,119 | ) | ||||||||
| Adjustments for: | ||||||||||||||||
| Depreciation | 258 | 267 | 1,065 | 1,245 | ||||||||||||
| Share-based compensation | 934 | 537 | 4,024 | 2,454 | ||||||||||||
| Financial income and expenses | 586 | (1,438 | ) | 3,175 | (470 | ) | ||||||||||
| Changes in working capital | 703 | 1,984 | 164 | 1,433 | ||||||||||||
| Cash used in operations | (8,793 | ) | (7,485 | ) | (35,096 | ) | (34,457 | ) | ||||||||
| Corporate income tax paid | (2 | ) | ||||||||||||||
| Interest received/(paid) | 78 | 159 | 147 | 236 | ||||||||||||
| Net cash used in operating activities | (8,715 | ) | (7,326 | ) | (34,951 | ) | (34,221 | ) | ||||||||
| Cash flow from investing activities | ||||||||||||||||
| Purchases of intangible assets | ||||||||||||||||
| Purchases of property, plant and equipment | (10 | ) | (44 | ) | (121 | ) | (2,539 | ) | ||||||||
| Net cash used in investing activities | (10 | ) | (44 | ) | (121 | ) | (2,539 | ) | ||||||||
| Cash flow from financing activities | ||||||||||||||||
| Proceeds from issuance of shares, net of transaction costs | 16,923 | 25,685 | ||||||||||||||
| Proceeds from exercise of share options | 3 | 4 | 2 | |||||||||||||
| Proceeds from borrowings | 100 | 177 | 301 | 370 | ||||||||||||
| Proceeds from convertible loans | 500 | 650 | ||||||||||||||
| Redemption of financial lease | (15 | ) | ||||||||||||||
| Net cash generated by financing activities | 17,526 | 177 | 26,640 | 357 | ||||||||||||
| Net increase/(decrease) in cash and cash equivalents | 8,801 | (7,193 | ) | (8,432 | ) | (36,403 | ) | |||||||||
| Currency effect cash and cash equivalents | (444 | ) | 1,472 | (2,669 | ) | 738 | ||||||||||
| Cash and cash equivalents, at beginning of the period | 39,742 | 64,921 | 59,200 | 94,865 | ||||||||||||
| Cash and cash equivalents at the end of the period | 48,099 | 59,200 | 48,099 | 59,200 |
The notes are an integral part of these condensed consolidated financial statements.
Unaudited Condensed Consolidated Financial Statements
PROQR THERAPEUTICS N.V.
Notes to Unaudited Condensed Consolidated Financial Statements
1. General information
ProQR Therapeutics N.V., or
ProQR or the Company , is a development stage company that primarily focuses on the development and commercialization of novel therapeutic medicines.
Since September 18, 2014, the Company s ordinary shares are listed on the NASDAQ Global Market under ticker symbol PRQR.
The Company was incorporated in the Netherlands, on February 21, 2012 and has been reorganized from a private company with limited liability to a public
company with limited liability on September 23, 2014. The Company has its statutory seat in Leiden, the Netherlands. The address of its headquarters and registered office is Zernikedreef 9, 2333 CK Leiden, the Netherlands.
ProQR Therapeutics N.V. is the ultimate parent company of the following entities:
ProQR Therapeutics N.V. is also statutory director of Stichting
Bewaarneming Aandelen ProQR ( ESOP Foundation ).
As used in these condensed consolidated financial statements, unless the context indicates
otherwise, all references to ProQR or the Company refer to ProQR Therapeutics N.V. including its subsidiaries and the ESOP Foundation.
2. Significant Accounting Policies
consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ( IFRS ), as issued by the International Accounting Standards Board ( IASB ), in particular IAS 34 Interim
Financial Reporting. Certain information and disclosures normally included in financial statements prepared in accordance with IFRS have been condensed or omitted. Accordingly, these condensed consolidated financial statements should be read in
conjunction with the Company s annual financial statements for the year ended December 31, 2016. In the opinion of management, all adjustments, consisting of normal recurring nature, considered necessary for a fair presentation have been
included in the condensed consolidated financial statements.
The Company s financial results have varied substantially, and are expected to continue
to vary, from period to period. The Company believes that its ordinary activities are not linked to any particular seasonal factors.
The Company operates
in one reportable segment, which comprises the discovery and development of innovative, RNA based therapeutics.
PROQR THERAPEUTICS | ZERNIKEDREEF 9 | 2333 CK LEIDEN | THE NETHERLANDS |
+31 88 166 7000 | WWW.PROQR.COM
Unaudited Condensed Consolidated Financial Statements
3. Adoption of new and revised International Financial Reporting Standards
The accounting policies adopted in the preparation of the condensed consolidated financial statements are consistent with those applied in the preparation of
the Company s annual financial statements for the year ended December 31, 2016. New Standards and Interpretations, which became effective as of January 1, 2017, did not have a material impact on our condensed consolidated financial
4. Critical Accounting Estimates and Judgments
In the application of the Company s accounting policies, management is required to make judgments, estimates and assumptions about the carrying amounts of
assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in
which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.
(a) Share-based payments
Share options granted to
employees and consultants are measured at the fair value of the equity instruments granted. Fair value is determined through the use of the Black-Scholes option-pricing model, which is considered the most appropriate model for this purpose by
Initially, the Company s ordinary shares were not publicly traded and consequently the Company needed to estimate the fair value of its
share and the expected volatility of that value. Please refer to the Company s annual financial statements for the year ended December 31, 2016 for the assumptions used in those estimates. The value of the underlying shares was determined
on the basis of the prior sale of company stock method. As such, the Company has benchmarked the value per share to external transactions of Company shares and external financing rounds.
For options granted from the moment of listing, the Company uses the closing price of the ordinary shares on the previous business day as exercise price of
the options granted.
The result of the share option valuations and the related compensation expense is dependent on the model and input parameters used.
Even though Management considers the fair values reasonable and defensible based on the methodologies applied and the information available, others might derive a different fair value for the Company s share options.
(b) Corporate income taxes
The Company recognizes
deferred tax assets arising from unused tax losses or tax credits only to the extent that the Company has sufficient taxable temporary differences or there is convincing evidence that sufficient taxable profit will be available against which the
unused tax losses or unused tax credits can be utilized. Management s judgment is that such convincing evidence is currently not sufficiently available and a deferred tax asset is therefore only recognized to the extent that the Company has
sufficient taxable temporary differences.
Grants (to be) received are reflected in the balance sheet as other receivables or deferred income. At each balance sheet date, for grants approved, the
Company estimates the associated costs incurred, the level of service performed and the progress of the associated projects. Based on this analysis grant income is recognized.
PROQR THERAPEUTICS | ZERNIKEDREEF 9 | 2333 CK LEIDEN | THE NETHERLANDS |
+31 88 166 7000 | WWW.PROQR.COM
Unaudited Condensed Consolidated Financial Statements
(d) Research and development expenditures
Research expenditures are currently not capitalized but are reflected in the income statement because the criteria for capitalization are not met. At each
balance sheet date, the Company estimates the level of service performed by the vendors and the associated costs incurred for the services performed.
Although we do not expect the estimates to be materially different from amounts actually incurred, the understanding of the status and timing of services
performed relative to the actual status and timing of services performed may vary and could result in reporting amounts that are too high or too low in any particular period.
The condensed consolidated financial statements do not include all disclosures for critical accounting estimates and judgments that are required in the annual
consolidated financial statements and should be read in conjunction with the Company s annual financial statements for the year ended December 31, 2016.
5. Cash and Cash Equivalents
At December 31, 2017,
the Company s cash and equivalents were 48,099,000 as compared to 59,200,000 at December 31, 2016. A significant portion of the cash balance is denominated in US dollars. The cash balances are held at banks with
investment grade credit ratings. The cash at banks is at full disposal of the Company.
6. Current liabilities
At December 31, 2017 and December 31, 2016, the other current liabilities consisted principally of accruals for services provided by vendors not yet
billed and other miscellaneous liabilities.
| December 31, 2017 | December 31, 2016 | |||||||
| 1,000 | 1,000 | |||||||
| Innovation credit | 4,899 | 4,598 | ||||||
| Accrued interest on innovation credit | 1,683 | 1,099 | ||||||
| Convertible notes | 662 | |||||||
| Total borrowings | 7,244 | 5,697 | ||||||
| Current portion | (1,960 | ) | ||||||
| 5,284 | 5,697 |
Innovation credit ( Innovatiekrediet )
On June 1, 2012, ProQR was awarded an Innovation credit by the Dutch government, through its agency RVO (previously: AgentschapNL ) of the
Ministry of Economic Affairs, for the Company s cystic fibrosis program. The credit was increased in the course of 2013 through 2017. The credit covers 35% of the costs incurred in respect of the program up to an initial maximum of
5.0 million through March 31, 2018.
The credit is interest-bearing at a rate of 10% per annum. The credit, including accrued