☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
France | ||
State or other jurisdiction of incorporation or organization | Not applicable (I.R.S. Employer Identification No.) |
177-181 avenue Pierre Brossolette | N/A | ||
(Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
American Depositary Shares, each representing | DBVT | The Nasdaq Stock Market LLC | ||
one-half ofone ordinary share, nominal value | ||||
Ordinary shares, nominal value €0.10 per share* | n/a | The Nasdaq Stock Market LLC | ||
* | Not for trading, but only in connection with the registration of the American Depositary Shares. |
Securities | registered pursuant to section 12(g) of the Act: None. |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☐ |
Table of contents
Part I | 5 | |||||
Item 1 | Condensed Consolidated Statements of Financial Position (Unaudited) as of September 30, | 5 | ||||
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) for the Three and Nine Months Ended September | 6 | |||||
Condensed Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended September 30, | 7 | |||||
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) for the Nine Months Ended September 30, | 8 | |||||
9 | ||||||
Item 2 | 19 | |||||
Item 3 | 26 | |||||
Item 4 | 26 | |||||
Part II | 26 | |||||
Item 1 | 26 | |||||
Item 1A | 27 | |||||
Item 2 | 27 | |||||
Item 3 | 27 | |||||
Item 4 | 27 | |||||
Item 5 | 27 | |||||
Item 6 | 27 |
Unless the context otherwise requires, we use the terms “DBV”, “DBV Technologies,” the “Company,” “we,” “us” and “our” in this Quarterly Report on Form 10-Q, or Quarterly Report, to refer to DBV Technologies S.A. and, where appropriate, its consolidated subsidiaries. “Viaskin™“Viaskin™”, “EPIT™“EPIT™” and our other registered and common law trade names, trademarks and service marks are the property of DBV Technologies S.A. or our subsidiaries. All other trademarks, trade names and service marks appearing in this Quarterly Report are the property of their respective owners. Solely for convenience, the trademarks and trade names in this Quarterly Report may be referred to without the
2
September 30, | December 31, | |||||||||||
Notes | 2023 | 2022 | ||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | 3 | $ | 149,135 | $ | 209,194 | |||||||
Other current assets | 4 | 20,136 | 13,880 | |||||||||
Total current assets | 169,270 | 223,074 | ||||||||||
Property, plant, and equipment, net | 13,094 | 15,096 | ||||||||||
Right-of-use | 5 | 1,389 | 2,513 | |||||||||
Intangible assets | 61 | 10 | ||||||||||
Other non-current assets | 5,970 | 5,824 | ||||||||||
Total non-current assets | 20,513 | 23,444 | ||||||||||
Total Assets | $ | 189,783 | $ | 246,518 | ||||||||
Liabilities and shareholders’ equity | ||||||||||||
Current liabilities: | ||||||||||||
Trade payables | 6 | $ | 16,654 | $ | 14,473 | |||||||
Short-term operating leases | 5 | 1,522 | 1,894 | |||||||||
Current contingencies | 9 | 4,596 | 3,944 | |||||||||
Other current liabilities | 6 | 8,671 | 9,210 | |||||||||
Total current liabilities | 31,443 | 29,521 | ||||||||||
Long-term operating leases | 5 | 94 | 1,127 | |||||||||
Non-current contingencies | 9 | 11,553 | 16,680 | |||||||||
Other non-current liabilities | 6 | 2,702 | 4,735 | |||||||||
Total non-current liabilities | 14,349 | 22,543 | ||||||||||
Total Liabilities | $ | 45,792 | $ | 52,064 | ||||||||
Shareholders’ equity: | ||||||||||||
Ordinary shares, €0.10 par value; 96,253,553 and 94,137,145 shares authorized, and issued as of September 30, 2023 and December 31, 2022, respectively | $ | 10,953 | $ | 10,720 | ||||||||
Additional paid-in capital | 376,249 | 458,221 | ||||||||||
Treasury stock, 175,481 and 149,793 ordinary shares as of September 30, 2023 and December 31, 2022, respectively, at cost | (1,163 | ) | (1,109 | ) | ||||||||
Accumulated deficit | (227,677 | ) | (259,578 | ) | ||||||||
Accumulated other comprehensive income | 761 | 781 | ||||||||||
Accumulated currency translation effect | (15,132 | ) | (14,581 | ) | ||||||||
Total Shareholders’ equity | 7 | $ | 143,991 | $ | 194,453 | |||||||
Total Liabilities and Shareholders’ equity | $ | 189,783 | $ | 246,518 | ||||||||
September 30, | December 31, | |||||||||||
Note | 2022 | 2021 | ||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | 3 | $ | 212,670 | $ | 77,301 | |||||||
Other current assets | 4 | 13,025 | 37,085 | |||||||||
Total current assets | 225,695 | 114,386 | ||||||||||
Property, plant, and equipment, net | 14,429 | 18,146 | ||||||||||
Right-of-use | 5 | 2,614 | 7,336 | |||||||||
Intangible assets | 11 | 22 | ||||||||||
Other non-current assets | 5,368 | 6,833 | ||||||||||
Total non-current assets | 22,422 | 32,338 | ||||||||||
Total Assets | $ | 248,117 | $ | 146,723 | ||||||||
Liabilities and shareholders' equity | ||||||||||||
Current liabilities: | ||||||||||||
Trade payables | 6 | $ | 15,369 | $ | 11,429 | |||||||
Short-term operating leases | 5 | 1,381 | 3,003 | |||||||||
Short-term financial debt | — | 510 | ||||||||||
Current contingencies | 9 | 3,026 | 4,095 | |||||||||
Other current liabilities | 6 | 8,615 | 12,361 | |||||||||
Total current liabilities | 28,391 | 31,397 | ||||||||||
Long-term operating leases | 5 | 1,423 | 7,147 | |||||||||
Non-current contingencies | 9 | 5,272 | 6,758 | |||||||||
Other non-current liabilities | 6 | 979 | 2,147 | |||||||||
Total non-current liabilities | 7,674 | 16,052 | ||||||||||
Total Liabilities | $ | 36,065 | $ | 47,449 | ||||||||
Shareholders’ equity: | ||||||||||||
Ordinary shares, €0.10 par value; 94,025,441 and 55,095,762 shares authorized, and issued as at September 30, 2022 and December 31, 2021, respectively | $ | 10,709 | $ | 6,538 | ||||||||
Additional paid-in capital | 456,884 | 358,115 | ||||||||||
Treasury stock, 137,101 and 153,631 ordinary shares as of September 30, 2022 and December 31, 2021, respectively, at cost | (1,083 | ) | (1,232 | ) | ||||||||
Accumulated deficit | (220,337 | ) | (258,528 | ) | ||||||||
Accumulated other comprehensive income | 783 | 519 | ||||||||||
Accumulated currency translation effect | (34,904 | ) | (6,137 | ) | ||||||||
Total Shareholders’ equity | 7 | $ | 212,052 | $ | 99,274 | |||||||
Total Liabilities and Shareholders’ equity | $ | 248,117 | $ | 146,723 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | Notes | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||
Note | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||
Operating income | 10 | $ | 2,074 | $ | 1,323 | $ | 6,148 | $ | 2,776 | 10 | $ | 2,372 | $ | 2,074 | $ | 6,853 | $ | 6,148 | ||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||||||||||||
Research and development expenses | (15,096 | ) | (16,320 | ) | (45,930 | ) | (58,663 | ) | (13,795 | ) | (15,096 | ) | (47,448 | ) | (45,930 | ) | ||||||||||||||||||||||
Sales and marketing expenses | (159 | ) | (1,072 | ) | (1,659 | ) | (2,999 | ) | (663 | ) | (159 | ) | (1,613 | ) | (1,659 | ) | ||||||||||||||||||||||
General and administrative expenses | (4,839 | ) | (8,299 | ) | (17,173 | ) | (26,250 | ) | (6,184 | ) | (4,839 | ) | (22,304 | ) | (17,173 | ) | ||||||||||||||||||||||
Total Operating expenses | (20,094 | ) | (25,691 | ) | (64,762 | ) | (87,912 | ) | (20,642 | ) | (20,094 | ) | (71,365 | ) | (64,762 | ) | ||||||||||||||||||||||
Loss from operations | (18,020 | ) | (24,368 | ) | (58,614 | ) | (85,137 | ) | (18,270 | ) | (18,020 | ) | (64,512 | ) | (58,614 | ) | ||||||||||||||||||||||
Financial income | 732 | 336 | 1,668 | 597 | ||||||||||||||||||||||||||||||||||
Financial income (expenses) | 1,534 | 732 | 2,984 | 1,668 | ||||||||||||||||||||||||||||||||||
Loss before taxes | (17,287 | ) | (24,033 | ) | (56,946 | ) | (84,540 | ) | (16,736 | ) | (17,287 | ) | (61,527 | ) | (56,946 | ) | ||||||||||||||||||||||
Income tax (expense) | — | — | (87 | ) | 404 | |||||||||||||||||||||||||||||||||
Income tax | — | — | (13 | ) | (87 | ) | ||||||||||||||||||||||||||||||||
Net loss | $ | (17,287 | ) | $ | (24,033 | ) | $ | (57,033 | ) | $ | (84,136 | ) | $ | (16,736 | ) | $ | (17,287 | ) | $ | (61,540 | ) | $ | (57,033 | ) | ||||||||||||||
Foreign currency translation differences, net of taxes | (15,425 | ) | (3,728 | ) | (28,752 | ) | (9,684 | ) | (3,996 | ) | (15,425 | ) | (551 | ) | (28,752 | ) | ||||||||||||||||||||||
Actuarial gains (losses) on employee benefits, net of taxes | 41 | 28 | 264 | (10 | ) | 73 | 41 | (19 | ) | 264 | ||||||||||||||||||||||||||||
Total comprehensive loss | $ | (32,672 | ) | $ | (27,733 | ) | $ | (85,520 | ) | $ | (93,830 | ) | $ | (20,659 | ) | $ | (32,672 | ) | $ | (62,111 | ) | $ | (85,520 | ) | ||||||||||||||
Basic/diluted net loss per share attributable to shareholders | 14 | $ | (0.18 | ) | $ | (0.44 | ) | $ | (0.79 | ) | $ | (1.53 | ) | 14 | $ | (0.17 | ) | $ | (0.18 | ) | $ | (0.65 | ) | $ | (0.79 | ) | ||||||||||||
Weighted average shares outstanding used in computing per sha re amounts: | 93,905,050 | 54,947,354 | 71,779,572 | 54,911,278 | ||||||||||||||||||||||||||||||||||
Weighted average shares outstanding used in computing per share amounts: | 96,075,540 | 93,905,050 | 94,801,569 | 71,779,572 |
Nine Months Ended September 30, | ||||||||||||||||||||||||
Nine Months Ended September 30, | Notes | 2023 | 2022 | |||||||||||||||||||||
Notes | 2022 | 2021 | ||||||||||||||||||||||
Net loss for the period | $ | (57,033 | ) | $ | (84,136 | ) | $ | (61,540 | ) | $ | (57,033 | ) | ||||||||||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||||||||||
Adjustments to reconcile net loss to net cash flow provided by (used in) operating activities: | ||||||||||||||||||||||||
Depreciation, amortization and accrued contingencies | 1,140 | 9,705 | (3,072 | ) | 1,140 | |||||||||||||||||||
Retirement pension obligations | 58 | 127 | 58 | 58 | ||||||||||||||||||||
Expenses related to share-based payments | 8 | 3,416 | 4,078 | 8 | 4,800 | 3,416 | ||||||||||||||||||
Other elements | (3 | ) | 1,214 | 23 | (3 | ) | ||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||
Decrease (increase) in trade receivables | — | 2,174 | ||||||||||||||||||||||
Decrease (increase) in other current assets | 20,900 | (9,036 | ) | (5,850 | ) | 20,900 | ||||||||||||||||||
(Decrease) increase in trade payables | 5,699 | (7,135 | ) | 1,691 | 5,699 | |||||||||||||||||||
(Decrease) increase in other current and non-current liabilities | (3,405 | ) | (5,497 | ) | (2,547 | ) | (3,405 | ) | ||||||||||||||||
Change in operating lease liabilities and right of use assets | (2,554 | ) | (946 | ) | 471 | (2,554 | ) | |||||||||||||||||
Net cash flow used in operating activities | (31,781 | ) | (89,452 | ) | ||||||||||||||||||||
Net cash flow provided by (used in) operating activities | (65,967 | ) | (31,781 | ) | ||||||||||||||||||||
Cash flows used in investing activities: | ||||||||||||||||||||||||
Acquisitions of property, plant, and equipment | (742 | ) | — | |||||||||||||||||||||
Cash flows provided by (used in) investing activities: | ||||||||||||||||||||||||
Acquisitions of property, plant, and equipment, net from proceeds | (325 | ) | (742 | ) | ||||||||||||||||||||
Proceeds from property, plant, and equipment dispositions | 3 | 46 | — | 3 | ||||||||||||||||||||
Acquisition of intangible assets | — | (8 | ) | |||||||||||||||||||||
Acquisitions of non-current financial assets | (149 | ) | — | (54 | ) | (149 | ) | |||||||||||||||||
Proceeds from non-current financial assets | 822 | 3 | ||||||||||||||||||||||
Proceeds from non-current financial assets dispositions | (242 | ) | 822 | |||||||||||||||||||||
Net cash flows used in investing activities | (66 | ) | 41 | |||||||||||||||||||||
Net cash flows provided by (used in) investing activities | (621 | ) | (66 | ) | ||||||||||||||||||||
Cash flows provided by financing activities: | ||||||||||||||||||||||||
Cash flows provided by (used in) financing activities: | ||||||||||||||||||||||||
Decrease in conditional advances | (479 | ) | (518 | ) | — | (479 | ) | |||||||||||||||||
Treasury shares | 149 | (359 | ) | 54 | 149 | |||||||||||||||||||
Capital increases, net of transaction costs | 194,732 | 794 | 6,902 | 194,732 | ||||||||||||||||||||
Other cash flows related to financing activities | — | (21 | ) | — | — | |||||||||||||||||||
Net cash flows provided by financing activities | 194,403 | (103 | ) | |||||||||||||||||||||
Net cash flows provided by (used in) financing activities | 6,956 | 194,403 | ||||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (27,186 | ) | (8,643 | ) | (427 | ) | (27,186 | ) | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 135,369 | (98,157 | ) | (60,059 | ) | 135,369 | ||||||||||||||||||
Net Cash and cash equivalents at the beginning of the period | 77,301 | 196,352 | 209,194 | 77,301 | ||||||||||||||||||||
Net cash and cash equivalents at the end of the period | 3 | $ | 212,670 | $ | 98,195 | 3 | $ | 149,135 | $ | 212,670 | ||||||||||||||
Ordinary shares | ||||||||||||||||||||||||||||||||
Number of Shares | Amount | Additional paid-in capital | Treasury stock | Accumulated deficit | Accumulated other comprehensive income (loss) | Accumulated currency translation effect | Total Shareholders’ Equity | |||||||||||||||||||||||||
Balance at January 1, 2022 | 55,095,762 | $ | 6,538 | $ | 358,115 | $ | (1,232 | ) | $ | (258,528 | ) | $ | 519 | $ | (6,137 | ) | $ | 99,274 | ||||||||||||||
Net (loss) | — | — | — | — | (16,706 | ) | — | — | (16,706 | ) | ||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | 24 | (1,933 | ) | (1,909 | ) | ||||||||||||||||||||||
Issuance of ordinary shares | 775 | 1 | — | — | — | — | — | 1 | ||||||||||||||||||||||||
Treasury shares | — | — | — | 40 | — | — | — | 40 | ||||||||||||||||||||||||
Share-based payments | — | — | 1,363 | — | — | — | — | 1,363 | ||||||||||||||||||||||||
Other change in equity | — | — | — | — | 15 | — | (15 | ) | — | |||||||||||||||||||||||
Balance at March 31, 2022 | 55,096,537 | $ | 6,539 | $ | 359,478 | $ | (1,193 | ) | $ | (275,219 | ) | $ | 543 | $ | (8,086 | ) | $ | 82,062 | ||||||||||||||
Net (loss) | — | — | — | — | (23,039 | ) | — | — | (23,039 | ) | ||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | 200 | (11,394 | ) | (11,194 | ) | ||||||||||||||||||||||
Issuance of ordinary shares | 38,926,142 | 4,170 | 103,007 | — | — | — | — | 107,176 | ||||||||||||||||||||||||
Issuance of warrants | — | — | 88,094 | — | — | — | — | 88,094 | ||||||||||||||||||||||||
Treasury shares | — | — | — | 240 | — | — | — | 240 | ||||||||||||||||||||||||
Share-based payments | — | — | 1,078 | — | — | — | — | 1,078 | ||||||||||||||||||||||||
Allocation of accumulated net losses | — | — | (95,209 | ) | — | 95,209 | — | — | — | |||||||||||||||||||||||
Balance at June 30, 2022 | 94,022,679 | $ | 10,708 | $ | 456,447 | $ | (953 | ) | $ | (203,050 | ) | $ | 743 | $ | (19,480 | ) | $ | 244,416 | ||||||||||||||
Net (loss) | — | — | — | — | (17,287 | ) | — | — | (17,287 | ) | ||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | 41 | (15,425 | ) | (15,384 | ) | ||||||||||||||||||||||
Issuance of ordinary shares | 2,762 | 1 | (539 | ) | — | — | — | — | (539 | ) | ||||||||||||||||||||||
Issuance of warrants | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Treasury shares | — | — | — | (130 | ) | — | — | — | (130 | ) | ||||||||||||||||||||||
Share-based payments | — | — | 976 | — | — | — | — | 976 | ||||||||||||||||||||||||
Allocation of accumulated net losses | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Balance at September 30, 2022 | 94,025,441 | $ | 10,709 | $ | 456,884 | $ | (1,083 | ) | $ | (220,337 | ) | $ | 783 | $ | (34,904 | ) | $ | 212,052 | ||||||||||||||
Ordinary shares | Ordinary shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Shares | Amount | Additional paid-in capital | Treasury stock | Accumulated deficit | Accumulated other comprehensive income (loss) | Accumulated currency translation effect | Total Shareholders’ Equity | Number of Shares | Amount | Additional paid-in capital | Treasury stock | Accumulated deficit | Accumulated other comprehensive income (loss) | Accumulated currency translation effect | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2021 | 54,929,187 | $ | 6,518 | $ | 1,152,042 | $ | (1,169 | ) | $ | (958,543 | ) | $ | 484 | $ | 6,158 | $ | 205,491 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2023 | 94,137,145 | $ | 10,720 | $ | 458,221 | $ | (1,109 | ) | $ | (259,578 | ) | $ | 781 | $ | (14,581 | ) | $ | 194,453 | ||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) | — | — | — | — | (29,449 | ) | — | — | (29,449 | ) | — | — | — | — | (20,561 | ) | — | — | (20,561 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (85 | ) | (8,744 | ) | (8,829 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | (82 | ) | 3,666 | 3,584 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of ordinary shares | 7,500 | 1 | 42 | — | — | — | — | 42 | 10,174 | 1 | (1 | ) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Treasury shares | — | — | — | 488 | — | — | — | 488 | — | — | — | (14 | ) | — | — | — | (14 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Share-based payments | — | — | 1,433 | — | — | — | — | 1,433 | — | — | 1,632 | — | — | — | — | 1,632 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 54,936,687 | $ | 6,519 | $ | 1,153,516 | $ | (681 | ) | $ | (987,992 | ) | $ | 399 | $ | (2,586 | ) | $ | 169,176 | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | 94,147,319 | $ | 10,721 | $ | 459,852 | $ | (1,123 | ) | $ | (280,138 | ) | $ | 698 | $ | (10,915 | ) | $ | 179,094 | ||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) | — | — | — | — | (30,654 | ) | — | — | (30,654 | ) | — | — | — | — | (24,243 | ) | — | — | (24,243 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 48 | 2,788 | 2,836 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | (10 | ) | (221 | ) | (232 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of ordinary shares | 75,000 | 9 | 464 | — | — | — | — | 473 | 2,103,635 | 231 | 7,535 | — | — | — | — | 7,766 | ||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of warrants | 279 | 279 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury shares | — | — | (185 | ) | — | — | — | (185 | ) | — | — | — | 42 | — | — | — | 42 | |||||||||||||||||||||||||||||||||||||||||||||||
Share-based payments | — | — | 1,094 | — | — | — | 1,094 | — | — | 1,814 | — | — | — | — | 1,814 | |||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of accumulated net losses | — | — | (797,823 | ) | — | 797,823 | — | — | — | — | — | (93,441 | ) | — | 93,441 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 55,011,687 | $ | 6,529 | $ | 357,530 | $ | (866 | ) | $ | (220,823 | ) | $ | 446 | $ | 203 | $ | 143,019 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | 96,250,954 | $ | 10,952 | $ | 375,759 | $ | (1,082 | ) | $ | (210,940 | ) | $ | 687 | $ | (11,136 | ) | $ | 164,240 | ||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) | — | — | — | — | (24,033 | ) | — | — | (24,033 | ) | — | — | — | — | (16,736 | ) | — | — | (16,736 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 28 | (3,728 | ) | (3,701 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | 73 | (3,996 | ) | (3,922 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of ordinary shares | 2,599 | 1 | (864 | ) | — | — | — | — | (864 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury shares | — | — | 56 | — | — | — | 56 | — | — | — | (81 | ) | — | — | — | (81 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Share-based payments | — | — | 1,551 | — | — | — | 1,551 | — | — | 1,354 | — | — | — | — | 1,354 | |||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of accumulated net losses | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | 55,011,687 | $ | 6,529 | $ | 359,081 | $ | (810 | ) | $ | (244,856 | ) | $ | 474 | $ | (3,526 | ) | $ | 116,892 | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2023 | 96,253,553 | $ | 10,953 | $ | 376,249 | $ | (1,163 | ) | $ | (222,676 | ) | $ | 761 | $ | (15,132 | ) | $ | 143,991 | ||||||||||||||||||||||||||||||||||||||||||||||
Ordinary shares | ||||||||||||||||||||||||||||||||
Number of Shares | Amount | Additional paid-in capital | Treasury stock | Accumulated deficit | Accumulated other comprehensive income (loss) | Accumulated currency translation effect | Total Shareholders’ Equity | |||||||||||||||||||||||||
Balance at January 1, 2022 | 55,095,762 | $ | 6,538 | $ | 358,115 | $ | (1,232 | ) | $ | (258,528 | ) | $ | 519 | $ | (6,137 | ) | $ | 99,274 | ||||||||||||||
Net (loss) | — | — | — | — | (16,706 | ) | — | — | (16,706 | ) | ||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | 24 | (1,933 | ) | (1,909 | ) | ||||||||||||||||||||||
Issuance of ordinary shares | 775 | 1 | — | — | — | — | — | 1 | ||||||||||||||||||||||||
Treasury shares | — | — | — | 40 | — | — | — | 40 | ||||||||||||||||||||||||
Share-based payments | — | — | 1,363 | — | — | — | — | 1,363 | ||||||||||||||||||||||||
Other changes | — | — | — | — | 15 | (15 | ) | — | ||||||||||||||||||||||||
Balance at March 31, 2022 | 55,096,537 | $ | 6,539 | $ | 359,478 | $ | (1,193 | ) | $ | (275,219 | ) | $ | 543 | $ | (8,086 | ) | $ | 82,062 | ||||||||||||||
Net (loss) | — | — | — | — | (23,039 | ) | — | — | (23,039 | ) | ||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | 200 | (11,394 | ) | (11,194 | ) | ||||||||||||||||||||||
Issuance of ordinary shares | 38,926,142 | 4,170 | 103,007 | — | — | — | — | 107,176 | ||||||||||||||||||||||||
Issuance of warrants | — | — | 88,094 | — | — | — | — | 88,094 | ||||||||||||||||||||||||
Treasury shares | — | — | — | 240 | — | — | — | 240 | ||||||||||||||||||||||||
Share-based payments | — | — | 1,078 | — | — | — | — | 1,078 | ||||||||||||||||||||||||
Allocation of accumulated net losses | — | — | (95,209 | ) | — | 95,209 | — | — | — | |||||||||||||||||||||||
Balance at June 30, 2022 | 94,022,679 | $ | 10,708 | $ | 456,447 | $ | (953 | ) | $ | (203,050 | ) | $ | 743 | $ | (19,480 | ) | $ | 244,416 | ||||||||||||||
Net (loss) | — | — | — | — | (17,287 | ) | — | — | (17,287 | ) | ||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | 41 | (15,425 | ) | (15,384 | ) | ||||||||||||||||||||||
Issuance of ordinary shares | 2 762 | 1 | (540 | ) | — | — | — | — | (539 | ) | ||||||||||||||||||||||
Treasury shares | — | — | — | (130 | ) | — | — | — | (130 | ) | ||||||||||||||||||||||
Share-based payments | — | — | 976 | — | — | — | — | 976 | ||||||||||||||||||||||||
Balance at September 30, 2022 | 94 025 441 | $ | 10,709 | $ | 456,884 | $ | (1,083 | ) | $ | (220,337 | ) | $ | 783 | $ | (34,904 | ) | $ | 212,052 | ||||||||||||||
September 30, | December 31, | |||||||||||||||
2022 | 2021 | September 30, 2023 | December 31, 2022 | |||||||||||||
Cash | 167,916 | 31,427 | 18,927 | 30,104 | ||||||||||||
Cash equivalents | 44,754 | 45,874 | 130,208 | 179,090 | ||||||||||||
Total cash and cash equivalents as reported in the statements of financial position | 212,670 | 77,301 | 149,135 | 209,194 | ||||||||||||
Bank overdrafts | — | — | ||||||||||||||
Total cash and cash equivalents as reported in the statements of cash flows | 149,135 | 209,194 |
September 30, 2023 | December 31, 2022 | |||||||
Research tax credit | 10,622 | 5,792 | ||||||
Other tax claims | 4,571 | 3,903 | ||||||
Prepaid expenses | 3,195 | 2,680 | ||||||
Other receivables | 1,748 | 1,504 | ||||||
Total | 20,136 | 13,880 | ||||||
September 30, | December 31, | |||||||
2022 | 2021 | |||||||
Research tax credit | 4,094 | 28,092 | ||||||
Other tax claims | 3,636 | 3,561 | ||||||
Prepaid expenses | 4,107 | 4,149 | ||||||
Other receivables | 1,188 | 1,283 | ||||||
Total | 13,025 | 37,085 | ||||||
Amount in thousands of US | ||||
Opening research tax credit receivable as of January 1, | ||||
+ Operating revenue | ||||
- Payment received | ||||
- Adjustment and currency translation effect | ( | ) | ||
Closing research tax credit receivable as of September 30, | ||||
Of which - Non-current portion | — | |||
Of which - Current portion |
September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||
Other | Other | |||||||||||||||||||||||
Real estate | assets | Total | Real estate | assets | Total | |||||||||||||||||||
Current portion | 1,592 | 73 | 1,665 | 1,972 | 79 | 2,051 | ||||||||||||||||||
Year 2 | 103 | 24 | 127 | 1,168 | 74 | 1,243 | ||||||||||||||||||
Year 3 | — | — | — | 65 | 6 | 71 | ||||||||||||||||||
Thereafter | — | — | — | — | — | — | ||||||||||||||||||
Total minimum lease payments | 1,695 | 97 | 1,792 | 3,204 | 160 | 3,364 | ||||||||||||||||||
Less: Effects of discounting | (167 | ) | (9 | ) | (176 | ) | (325 | ) | (17 | ) | (343 | ) | ||||||||||||
Present value of operating lease | 1,528 | 88 | 1,616 | 2,879 | 143 | 3,021 | ||||||||||||||||||
Less: current portion | (1,451 | ) | (71 | ) | (1,522 | ) | (1,823 | ) | (71 | ) | (1,894 | ) | ||||||||||||
Long-term operating lease | 77 | 17 | 94 | 1,055 | 72 | 1,127 | ||||||||||||||||||
Weighted average remaining lease term (years) | 0.72 | — | 1.40 | — | ||||||||||||||||||||
Weighted average discount rate | 2.84 | % | 2.48 | % | 3.00 | % | 2.45 | % |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||
Real estate | Other assets | Total | Real estate | Other assets | Total | |||||||||||||||||||
Current portion | 1,504 | 34 | 1,538 | 3,361 | 77 | 3,438 | ||||||||||||||||||
Year 2 | 1,874 | 18 | 1,891 | 3,124 | 23 | 3,147 | ||||||||||||||||||
Year 3 | 103 | 6 | 109 | 2,299 | 18 | 2,317 | ||||||||||||||||||
Year 4 | — | — | — | 771 | 1 | 773 | ||||||||||||||||||
Year 5 | — | — | — | 790 | — | 790 | ||||||||||||||||||
Thereafter | — | — | — | 1,220 | — | 1,220 | ||||||||||||||||||
Total minimum lease payments | 3,481 | 58 | 3,538 | 11,565 | 119 | 11,684 | ||||||||||||||||||
Less: Effects of discounting | (729 | ) | (5 | ) | (734 | ) | (1,526 | ) | (8 | ) | (1,534 | ) | ||||||||||||
Present value of operating lease | 2,752 | 52 | 2,804 | 10,039 | 111 | 10,150 | ||||||||||||||||||
Less: current portion | (1,350 | ) | (31 | ) | (1,381 | ) | (2,929 | ) | (74 | ) | (3,003 | ) | ||||||||||||
Long-term operating lease | 1,402 | 22 | 1,423 | 7,110 | 37 | 7,147 | ||||||||||||||||||
Weighted average remaining lease term (years) | 1.80 | — | 4.14 | 2.01 | ||||||||||||||||||||
Weighted average discount rate | 3.50 | % | 0.9 | % | 4.84 | % | 3.32 | % |
September 30, | ||||||||
2022 | 2021 | |||||||
Operating lease expense | 1,373 | 2,480 | ||||||
Net termination impact | (1,657 | ) | — |
September 30, | ||||||||
2023 | 2022 | |||||||
Operating lease expense | 1,223 | 1,373 | ||||||
Net termination impact | (92 | ) | (1,657 | ) |
September 30, | September 30, | |||||||||||||||
2022 | 2021 | 2023 | 2022 | |||||||||||||
Cash paid for amounts included in the measurement of lease liabilities | — | — | ||||||||||||||
Operating cash flows from operating leases | 1,533 | 2,845 | ||||||||||||||
Operating cash outflows related to operating leases | 1,410 | 1,533 |
September 30, | December 31, | |||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||
Other current liabilities | Other non-current liabilities | Total | Other current liabilities | Other non-current liabilities | Total | |||||||||||||||||||
Employee related liabilities | 5,557 | — | 5,557 | 5,872 | 45 | 5,917 | ||||||||||||||||||
Deferred income | 2,286 | 2,702 | 4,988 | 2,137 | 4,690 | 6,828 | ||||||||||||||||||
Tax liabilities | 193 | — | 193 | 69 | — | 69 | ||||||||||||||||||
Other debts | 635 | — | 635 | 1,131 | — | 1,131 | ||||||||||||||||||
Total | 8,671 | 2,702 | 11,372 | 9,210 | 4,735 | 13,945 | ||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||
Other current liabilities | Other non- current liabilities | Total | Other current liabilities | Other non- current liabilities | Total | |||||||||||||||||||
Employee related liabilities | 4,666 | 54 | 4,719 | 6,708 | 247 | 6,954 | ||||||||||||||||||
Deferred income | 2,911 | 926 | 3,836 | 4,146 | 1,900 | 6,046 | ||||||||||||||||||
Tax liabilities | 405 | — | 405 | 182 | — | 182 | ||||||||||||||||||
Other debts | 634 | — | 634 | 1,325 | — | 1,325 | ||||||||||||||||||
Total | 8,615 | 979 | 9,594 | 12,361 | 2,147 | 14,508 | ||||||||||||||||||
warrants | ||||
Number of outstanding | ||||||||||||
BSA | SO | RSUs | ||||||||||
Balance as of December 31, 2021 | 256,693 | 3,631,210 | 1,240,520 | |||||||||
Granted during the period | — | 154,500 | 69,900 | |||||||||
Forfeited during the period | — | (238,715 | ) | (92,326 | ) | |||||||
Exercised/released during the period | — | (5,613 | ) | (32,159 | ) | |||||||
Expired during the period | (5,000 | ) | — | — | ||||||||
Balance as of September 30, 2022 | 251,693 | 3,541,383 | 1,185,936 | |||||||||
Number of outstanding | ||||||||||||
BSA | SO | RSUs | ||||||||||
Balance as of December 31, 2022 | 251,693 | 5,306,569 | 1,589,081 | |||||||||
Granted during the period | — | 59,200 | 35,800 | |||||||||
Forfeited during the period | — | (128,700 | ) | (123,382 | ) | |||||||
Exercised/released during the period | — | — | (66,883 | ) | ||||||||
Expired during the period | — | — | — | |||||||||
Balance as of September 30, 2023 | 251,693 | 5,237,069 | 1,434,616 | |||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||
Research & development | SO | (337 | ) | (273 | ) | (1,002 | ) | (952 | ) | |||||||||||
RSU | (201 | ) | (660 | ) | (594 | ) | (795 | ) | ||||||||||||
Sales & marketing | SO | 30 | (60 | ) | (3 | ) | (172 | ) | ||||||||||||
RSU | 20 | (27 | ) | 4 | (75 | ) | ||||||||||||||
General & administrative | SO | (423 | ) | (439 | ) | (1,599 | ) | (1,791 | ) | |||||||||||
RSU | (66 | ) | (92 | ) | (223 | ) | (293 | ) | ||||||||||||
Total share-based compensation (expense) | (976 | ) | (1,551 | ) | (3,416 | ) | (4,078 | ) | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September | |||||||||||||||||||
30, | ||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||
Research & development | SO | (376 | ) | (337 | ) | (1,272 | ) | (1,002 | ) | |||||||||||
RSU | (85 | ) | (201 | ) | (614 | ) | (594 | ) | ||||||||||||
Sales & marketing | SO | (25 | ) | 30 | (78 | ) | (3 | ) | ||||||||||||
RSU | (8 | ) | 20 | (25 | ) | 4 | ||||||||||||||
General & administrative | SO | (747 | ) | (423 | ) | (2,473 | ) | 1,599 | ) | |||||||||||
RSU | (106 | ) | (66 | ) | (337 | ) | (223 | ) | ||||||||||||
Total share-based compensation (expense) | (1,345 | ) | (976 | ) | (4,800 | ) | (3,416 | ) | ||||||||||||
September 30, | December 31, | |||||||
2022 | 2021 | |||||||
Current contingencies | 3,026 | 4,095 | ||||||
Non-current contingencies | 5,272 | 6,758 | ||||||
Total contingencies | 8,298 | 10,853 | ||||||
September 30, 2023 | December 31, 2022 | |||||||
Current contingencies | 4,596 | 3,944 | ||||||
Non-current contingencies | 11,553 | 16,680 | ||||||
Total contingencies | 16,149 | 20,625 | ||||||
Pension retirement obligations | Collaboration agreement - Loss at completion | Other contingencies | Total | Pension retirement obligations | Collaboration agreement - Loss at completion | Other contingencies | Total | |||||||||||||||||||||||||
At January 1, 2022 | 1,008 | 9,800 | 45 | 10,853 | ||||||||||||||||||||||||||||
At January 1, 2023 | 790 | 19,835 | — | 20,625 | ||||||||||||||||||||||||||||
Increases in liabilities | 58 | — | — | 58 | 58 | — | 796 | 854 | ||||||||||||||||||||||||
Used liabilities | — | (889 | ) | (43 | ) | (932 | ) | — | — | — | — | |||||||||||||||||||||
Reversals of unused liabilities | — | — | — | — | — | (5,325 | ) | — | (5,325 | ) | ||||||||||||||||||||||
Net interest related to employee benefits, and unwinding of discount | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Actuarial gains and losses on defined-benefit plans | (264 | ) | — | — | (264 | ) | 19 | — | — | 19 | ||||||||||||||||||||||
Currency translation effect | (123 | ) | (1,291 | ) | (3 | ) | (1,417 | ) | (7 | ) | (16 | ) | — | (24 | ) | |||||||||||||||||
At September 30, 2022 | 678 | 7,620 | — | 8,298 | ||||||||||||||||||||||||||||
At September 30, 2023 | 860 | 14,494 | 796 | 16,149 | ||||||||||||||||||||||||||||
Of which Current | — | 3,026 | — | 3,026 | — | 3,801 | 796 | 4,596 | ||||||||||||||||||||||||
Of which Non-current | 678 | 4,594 | — | 5,272 | 860 | 10,693 | — | 11,553 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Research tax credit | 1,237 | 1,407 | 4,978 | 4,467 | ||||||||||||
Other operating income | 1,134 | 668 | 1,875 | 1,681 | ||||||||||||
Total | 2,372 | 2,074 | 6,853 | 6,148 | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Research tax credit | 1,407 | 1,647 | 4,467 | 5,324 | ||||||||||||
Other operating income | 668 | (324 | ) | 1,681 | (2,549 | ) | ||||||||||
Total | 2,074 | 1,323 | 6,148 | 2,776 | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
Research and Development expenses | 3,186 | 4,161 | 9,357 | 12,272 | 3,663 | 3,186 | 11,684 | 9,357 | ||||||||||||||||||||||||
Sales and Marketing expenses | 138 | 492 | 727 | 1,528 | 187 | 138 | 557 | 727 | ||||||||||||||||||||||||
General and Administrative expenses | 1,598 | 2,583 | 6,961 | 9,347 | 2,876 | 1,598 | 8,834 | 6,961 | ||||||||||||||||||||||||
Total personnel expenses | 4,922 | 7,236 | 17,045 | 23,148 | 6,724 | 4,922 | 21,075 | 17,045 | ||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||
Wages and salaries | 3,505 | 3,793 | 11,001 | 12,629 | 4,175 | 3,505 | 12,691 | 11,001 | ||||||||||||||||||||||||
Social security contributions | 634 | 1,110 | 2,141 | 3,505 | 962 | 634 | 2,846 | 2,141 | ||||||||||||||||||||||||
Expenses for pension commitments | 214 | 286 | 723 | 981 | 234 | 214 | 738 | 723 | ||||||||||||||||||||||||
Employer contribution to bonus shares | (406 | ) | 497 | (236 | ) | 1,955 | — | (406 | ) | — | (236 | ) | ||||||||||||||||||||
Share-based payments | 976 | 1,551 | 3,416 | 4,078 | 1,353 | 976 | 4,800 | 3,416 | ||||||||||||||||||||||||
Total | 4,922 | 7,236 | 17,045 | 23,148 | 6,724 | 4,922 | 21,075 | 17,045 | ||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Non-employee warrants | 251,693 | 256,693 | 251,693 | 256,693 | ||||||||||||
Stock options | 3,541,383 | 2,585,710 | 3,541,383 | 2,585,710 | ||||||||||||
Restricted stock units | 1,185,936 | 1,104,145 | 1,185,936 | 1,104,145 | ||||||||||||
Prefunded warrants | 28,276,331 | — | 28,276,331 | — |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Non-employee warrants | 251,693 | 251,693 | 251,693 | 251,693 | ||||||||||||
Stock options | 5,237,069 | 3,541,383 | 5,237,069 | 3,541,383 | ||||||||||||
Restricted stock units | 1,434,616 | 1,185,936 | 1,434,616 | 1,185,936 | ||||||||||||
Prefunded warrants | 28,276,331 | 28,276,331 | 28,276,331 | 28,276,331 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our unaudited condensed consolidated financial statements and related notes included in Part 1, Item 1 of this Report and with our audited financial statements and related notes thereto for the year ended December 31, 2021,2022, included in our Annual Report on Form 10-K for the year ended December 31, 2021,2022, filed with the Securities and Exchange Commission on March 9, 2022,2, 2023, or the Annual Report. This discussion and other parts of this Report contain forward-looking statements that involve risks and uncertainties, such as statements of our plans, objectives, expectations and intentions. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause such differences are discussed in the section of this Report titled “Special Note Regarding Forward-Looking Statements” and under “Item 1A. Risk Factors” in the Annual Report.
Overview
We are a clinical-stage specialty biopharmaceutical company focused on changing the field of immunotherapy by developing a novel technology platform called Viaskin. Our therapeutic approach is based on epicutaneous immunotherapy, or EPIT
Our most advanced clinical program is Viaskin Peanut.
On December 2021, the Company decided not to pursue the stepwise approach to the development plans for Viaskin Peanut as requested by the FDA in the October 2021 letter. The Company estimated that the FDA’s newly proposed stepwise approach would require at least five rounds of exchanges that necessitate FDA alignment prior to initiating STAMP, the 6-month safety and adhesion study. As such, in December 2021, the Company announced its plan to initiate a pivotal Phase III placebo-controlled efficacy trial for a modified Viaskin Peanut patch (mVP) in children in the intended patient population. The clinical trial will also include updates to the Instructions for Use (IFU). The Company considers this approach the most straightforward to potentially demonstrate effectiveness, safety, and improved in vivo adhesion of the modified Viaskin Peanut system. The FDA confirmed the Company’s change in strategy is agreeable via oral and written exchanges.
On September 21, 2022,March 7, 2023, the Company announced it received feedback from the U.S. FDA in the form of a partial clinical hold on its VITESSE Phase 3 clinical study. In the partial clinical hold letter, the FDA specifies changes to elementsscreening of the VITESSE protocol with the intent for the trial to support a future BLA submission. The modifications noted within the FDA’s communication address design elements, including the statistical analysis of adhesion, minimum daily wear time and technical alignmentsfirst patient in methods of categorizing data, to meet study objectives as well as the total number of trial participants on active treatment. The Company has not yet begun the screening or recruitment of subjects in the VITESSE study. The partial clinical hold is specific to VITESSE and does not impact any other ongoing its clinical studies. The Company expects to provide additional updates following consultation with the FDA.
On April 19, 2023, the treatment responder criteria after 12 months, as compared to 33.5% of subjects inCompany outlined the placebo arm (difference in response rates = 33.4 %, 95 % CI = 22.4% - 44.5 %).
On May 10, 2023, the New England Journal of Medicine (NEJM) published results that demonstrated epicutaneous immunotherapy (EPIT) with VP was statistically superior to placebo in desensitizing children to peanut exposure by increasing the peanut dose that triggers allergic symptoms. As stated in an accompanying editorial piece, these data are seen as “very good news” for toddlers with peanut allergy, as there are currently no approved treatment options for peanut-allergic children under the age of 4 years. Following this publication, the Company confirmed it is advancing regulatory efforts for VP in toddlers ages 1-3 years old with a confirmed peanut allergy.
On July 31, 2023, the Company announced receipt of feedback from FDA on the two supplemental safety studies, COMFORT Children and COMFORT Toddlers. The COMFORT Toddlers safety study will enroll peanut allergic toddlers ages 1 to– 3-years and will support the efficacy results generated from the EPITOPE Phase 3 years, givenpivotal study. The COMFORT Children safety study will enroll peanut allergic children ages 4 – 7-years and will support the high unmet needefficacy results anticipated from the ongoing VITESSE Phase 3 pivotal study. The FDA agreed with a 6-month study duration and absencea 3:1 randomization (active:placebo) of approved treatments for this vulnerable population.
Critical Accounting Policies and Significant Judgments and Estimates
Our management’s discussion and analysis of our financial condition and results of operations is based on our unaudited condensed consolidated financial statements, which have been prepared in accordance with generally accepted accounting principles in the United States, or U.S. GAAP. The preparation of these unaudited condensed consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements, as well as the revenue, costs and expenses recognized during the reporting periods. Our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.
19
There have been no new policies or significant changes to our critical accounting policies as disclosed in the critical accounting policies described in the Annual Report. Our significant accounting policies are more fully described in Note 1 of the Notes to the Consolidated Financial Statements in Part I,
Item 1 of our Annual Report.
Business trends and Results of Operations
Comparison of the Three Months Ended September 30, 20222023 and 2021
The following table summarizes our results of operations, derived from our unaudited condensed consolidated financial statements, which have been prepared in accordance with U.S. GAAP and presented in thousands of U.S. Dollars, for the three months ended September 30, 20222023 and 2021.
Three months ended September 30, | ||||||||||||||||
2022 | 2021 | $ change | % change | |||||||||||||
Operating income | $ | 2,074 | $ | 1,323 | 751 | 57 | % | |||||||||
Operating expenses | ||||||||||||||||
Research and development expenses | (15,096 | ) | (16,320 | ) | 1,224 | (8 | %) | |||||||||
Sales and marketing expenses | (159 | ) | (1,072 | ) | 913 | (85 | %) | |||||||||
General and administrative expenses | (4,839 | ) | (8,299 | ) | 3,460 | (42 | %) | |||||||||
Total Operating expenses | (20,094 | ) | (25,691 | ) | 5,597 | (22 | %) | |||||||||
Financial income | 732 | 336 | 396 | 118 | % | |||||||||||
Income tax | — | — | — | — | ||||||||||||
Net loss | $ | (17,287 | ) | $ | (24,033 | ) | 6,745 | (28 | %) | |||||||
Basic/diluted Net loss per share attributable to shareholders | $ | (0.18 | ) | $ | (0.44 | ) |
Three months ended September 30, | ||||||||||||||||
2023 | 2022 | $ change | % change | |||||||||||||
Operating income | $ | 2,372 | $ | 2,074 | 297 | 14 | % | |||||||||
Operating expenses | ||||||||||||||||
Research and development expenses | (13,795 | ) | (15,096 | ) | 1,301 | (9 | )% | |||||||||
Sales and marketing expenses | (663 | ) | (159 | ) | (504 | ) | 318 | % | ||||||||
General and administrative expenses | (6,184 | ) | (4,839 | ) | (1,345 | ) | 28 | % | ||||||||
|
|
|
|
|
| |||||||||||
Total Operating expenses | (20,642 | ) | (20,094 | ) | (548 | ) | 3 | % | ||||||||
|
|
|
|
|
| |||||||||||
Financial income (expenses) | 1,534 | 732 | 802 | 110 | % | |||||||||||
|
|
|
|
|
| |||||||||||
Income tax | — | — | — | — | ||||||||||||
|
|
|
|
|
| |||||||||||
Net loss | $ | (16,736 | ) | $ | (17,287 | ) | 551 | (3 | %) | |||||||
|
|
|
|
|
| |||||||||||
Basic/diluted Net loss per share attributable to shareholders | $ | (0.17 | ) | $ | (0.18 | ) |
Operating Income
The following table summarizes our operating income during the three months ended September 30, 20222023 and 2021:
Three months ended September 30, | $ change | % change | ||||||||||||||
2022 | 2021 | |||||||||||||||
Sales | — | — | — | — | ||||||||||||
Other income | 2,074 | 1,323 | 751 | 57 | % | |||||||||||
Research tax credit | 1,407 | 1,647 | (240 | ) | (15 | %) | ||||||||||
Other operating income | 668 | (324 | ) | 992 | (306 | %) | ||||||||||
Total operating income | 2,074 | 1,323 | 751 | 57 | % | |||||||||||
Three months ended September 30, | ||||||||||||||||
2023 | 2022 | $ change | % change | |||||||||||||
Sales | — | — | — | — | ||||||||||||
Other income | 2,372 | 2,074 | 297 | 14 | % | |||||||||||
Research tax credit | 1,237 | 1,407 | (169 | ) | (12 | %) | ||||||||||
Other operating income | 1,134 | 668 | 467 | 70 | % | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total operating income | 2,372 | 2,074 | 297 | 14 | % | |||||||||||
|
|
|
|
|
|
|
|
Our operating income is primarily generated from the French research tax credit (
The increase in operating income is primarily attributable to the revenue recognized under the Nestlé’s collaboration agreement, as we updated the measurement of progress of the Phase II clinical trial conducted as part of the agreement. During the three months ended September 30, 2021 negative revenue was recognized under the Nestlé’s collaboration agreement due to delays in new patient enrollment. The decrease in research tax credit is attributable to the decrease in eligible costs in connection with Research and Development costs.
Operating Expenses
Research and Development Expenses
The following table summarizes our research and development expenses incurred during the three months ended September 30, 20222023 and 2021:2022:
20
Three Months Ended September 30, | ||||||||||||||||
Research and Development expenses | 2022 | 2021 | $ change | % change | ||||||||||||
External clinical-related expenses | 11,136 | 8,633 | 2,503 | 29 | % | |||||||||||
Employee-related costs | 2,648 | 3,228 | (581 | ) | (18 | %) | ||||||||||
Share-based payment expenses | 538 | 933 | (395 | ) | (42 | %) | ||||||||||
Depreciation, amortization and other costs | 774 | 3,526 | (2,752 | ) | (78 | %) | ||||||||||
Total Research and Development expenses | 15,096 | 16,320 | (1,224 | ) | (8 | %) | ||||||||||
Three Months Ended September 30, | ||||||||||||||||
Research and Development expenses | 2023 | 2022 | $ change | % change | ||||||||||||
External clinical-related expenses | 12,277 | 11,136 | 1,141 | 10 | % | |||||||||||
Employee-related costs (excl. share-based payments) | 3,203 | 2,648 | 555 | 21 | % | |||||||||||
Share-based payment expenses | 460 | 538 | (78 | ) | (14 | %) | ||||||||||
Depreciation, amortization and other costs | (2,145 | ) | 774 | (2,920 | ) | (377 | %) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Total Research and Development expenses | 13,795 | 15,096 | (1,301 | ) | (9 | %) | ||||||||||
|
|
|
|
|
|
|
|
Research and Development expenses decreased by $1.2$1.3 million for the three months ended September 30, 2022,2023, compared to the three
Decreases in impacts of the loss at completion were partially offset by the increase by $1.1 million in external clinical-related expenses is driven by the launchas a result of work on VITESSE protocol. We have also continued to practice financial discipline and implemented further cost containment strategies.
Sales and Marketing expenses
The following table summarizes our sales and marketing expenses incurred during the three months ended September 30, 20222023 and 2021:
Three Months Ended September 30, | $ change | % change | ||||||||||||||
Sales and Marketing expenses | 2022 | 2021 | ||||||||||||||
Personnel expenses | 138 | 492 | (354 | ) | (72 | %) | ||||||||||
External professional services and other costs | 20 | 580 | (559 | ) | (96 | %) | ||||||||||
Total Sales and Marketing expenses | 159 | 1,072 | (913 | ) | (85 | %) | ||||||||||
Three Months Ended September 30, | ||||||||||||||||
Sales and Marketing expenses | 2023 | 2022 | $ change | % change | ||||||||||||
External professional services | 343 | (279 | ) | 621 | (223 | )% | ||||||||||
Employee-related costs (excl. share-based payments) | 152 | 188 | (37 | ) | (19 | %) | ||||||||||
Share-based payment expenses | 32 | (50 | ) | 82 | (165 | %) | ||||||||||
Depreciation, amortization and other costs | 136 | 299 | (163 | ) | (55 | %) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Sales and Marketing expenses | 663 | 159 | 504 | 318 | % | |||||||||||
|
|
|
|
|
|
|
|
Sales and marketing expenses amounted to $0.2increased by $0.5 million for the three months ended September 30, 2022, compared to $1.1 million for the three months ended September 30, 2021.
General and Administrative expenses
The following table summarizes our general and administrative expenses incurred during the three months ended September 30, 20222023 and 2021:
Three Months Ended September 30, | $ change | % change | ||||||||||||||
General and Administrative expenses | 2022 | 2021 | ||||||||||||||
External professional services | 1,292 | 2,216 | (924 | ) | (42 | %) | ||||||||||
Employee-related costs | 1,110 | 2,052 | (942 | ) | (46 | %) | ||||||||||
Share-based payment expenses | 488 | 530 | (42 | ) | (8 | %) | ||||||||||
Depreciation, amortization and other costs | 1,949 | 3,501 | (1,552 | ) | (44 | %) | ||||||||||
Total General and Administrative expenses | 4,839 | 8,299 | (3,460 | ) | (42 | %) | ||||||||||
Three Months Ended September 30, | ||||||||||||||||
General and Administrative expenses | 2023 | 2022 | $ change | % change | ||||||||||||
External professional services | 840 | 1,292 | (451 | ) | (35 | %) | ||||||||||
Employee-related costs (excl. share-based payments) | 2,024 | 1,110 | 914 | 82 | % | |||||||||||
Share-based payment expenses | 853 | 489 | 364 | 74 | % | |||||||||||
Depreciation, amortization and other costs | 2,467 | 1,949 | 518 | 27 | % | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total General and Administrative expenses | 6,184 | 4,839 | 1,345 | 28 | % | |||||||||||
|
|
|
|
|
|
|
|
General and Administrative expenses decreasedincreased by $3.5$1.3 million for the three months ended September 30, 2022,2023, compared to the three months ended September 30, 2021 primarily2022, mainly due to increase by $0.9 million in employee-related costs (excluding share-based payments) to support General and Administrative expenses activities explained by the average number of employees increase. In addition, we recorded a decrease in depreciation, amortization and otherprovision amounting to $0.8 million as of September 30, 2023, as our best estimate of costs as we continued to practice financial discipline and implemented further cost containment strategies.be incurred if the Montrouge office lease agreement is not renewed at its July 2024 term expiration.
21
Financial income (expense)
Our financial income was approximately$1.5 million for the three months ended September 30, 2023, compared to a financial income of $0.7 million for the three months ended September 30, 2022, compared to a2022. This item mainly includes the financial income of $0.3on our financial assets.
Income tax
Our income tax expense was nil for the three months ended September 30, 2023 and September 30, 2022.
Net loss
Net loss was $16.7 million for the three months ended September 30, 2021. This item mainly includes foreign exchange income.
Comparison of the Nine Months Ended September 30, 20222023 and 2021
The following table summarizes our results of operations, derived from our unaudited condensed consolidated financial statements, which have been prepared in accordance with U.S. GAAP and presented in thousands of U.S. Dollars, for the nine months ended September 30, 20222023 and 2021.
Nine months ended September 30, | $ change | % change | ||||||||||||||
2022 | 2021 | |||||||||||||||
Operating income | $ | 6,148 | $ | 2,776 | 3,373 | 122 | % | |||||||||
Operating expenses | ||||||||||||||||
Research and development expenses | (45,930 | ) | (58,663 | ) | 12,733 | (22 | )% | |||||||||
Sales and marketing expenses | (1,659 | ) | (2,999 | ) | 1,340 | (45 | )% | |||||||||
General and administrative expenses | (17,173 | ) | (26,250 | ) | 9,077 | (35 | )% | |||||||||
Total Operating expenses | (64,762 | ) | (87,912 | ) | 23,150 | (26 | )% | |||||||||
Financial income | 1,668 | 597 | 1,071 | 179 | % | |||||||||||
Income tax (expense) | (87 | ) | 404 | (491 | ) | (122 | )% | |||||||||
Net loss | $ | (57,033 | ) | $ | (84,136 | ) | 27,103 | (32 | )% | |||||||
Basic/diluted Net loss per share attributable to shareholders | $ | (0.79 | ) | $ | (1.53 | ) |
Nine months ended September 30, | ||||||||||||||||
2023 | 2022 | $ change | % change | |||||||||||||
Operating income | $ | 6,853 | $ | 6,148 | 705 | 11 | % | |||||||||
Operating expenses | ||||||||||||||||
Research and development expenses | (47,448 | ) | (45,930 | ) | (1,518 | ) | 3 | % | ||||||||
Sales and marketing expenses | (1,613 | ) | (1,659 | ) | 46 | (3) | % | |||||||||
General and administrative expenses | (22,304 | ) | (17,173 | ) | (5,130 | ) | 30 | % | ||||||||
|
|
|
|
|
| |||||||||||
Total Operating expenses | (71,365 | ) | (64,762 | ) | (6,602 | ) | 10 | % | ||||||||
|
|
|
|
|
| |||||||||||
Financial income (expense) | 2,984 | 1,668 | 1,316 | 79 | % | |||||||||||
|
|
|
|
|
| |||||||||||
Income tax | (13 | ) | (87 | ) | 74 | (85) | % | |||||||||
|
|
|
|
|
| |||||||||||
Net loss | $ | (61,540 | ) | $ | (57,033 | ) | (4,507 | ) | 8 | % | ||||||
|
|
|
|
|
| |||||||||||
Basic/diluted Net loss per share attributable to shareholders | $ | (0.65 | ) | $ | (0.79 | ) | ||||||||||
|
|
|
|
Operating Income
The following table summarizes our operating income during the nine months ended September 30, 20222023 and 2021:
Nine months ended September 30, | $ change | % change | ||||||||||||||
2022 | 2021 | |||||||||||||||
Sales | — | — | ||||||||||||||
Other income | 6,148 | 2,776 | 3,373 | 122 | % | |||||||||||
Research tax credit | 4,467 | 5,324 | (857 | ) | (16 | %) | ||||||||||
Other operating income | 1,681 | (2,549 | ) | 4,230 | (166 | %) | ||||||||||
Total operating income | 6,148 | 2,776 | 3,373 | 122 | % | |||||||||||
Nine months ended September 30, | ||||||||||||||||
2023 | 2022 | $ change | % change | |||||||||||||
Sales | — | — | ||||||||||||||
Other income | 6,853 | 6,148 | ,705 | 11 | % | |||||||||||
Research tax credit | 4,978 | 4,467 | ,511 | 11 | % | |||||||||||
Other operating income | 1,875 | 1,681 | ,194 | 12 | % | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total operating income | 6,853 | 6,148 | ,705 | 11 | % | |||||||||||
|
|
|
|
|
|
|
|
Our operating income was primarily generated fromconsisted of the French research tax credit (
The increase in operating income was mainly due to $2.8the increase by $0.5 million duringin the French research tax credit as both eligible employee-related costs and eligible external clinical-related expenses increased to support research and development activities (1) after the initiation of the VITESSE trial with the first patient screened in March 2023, and (2) as part of the new safety study for toddlers after the FDA confirmed additional safety data is required for BLA.
22
The other operating income increased by $0.2 million for nine months ended September 30, 2021.
Operating Expenses
Research and Development Expenses
The following table summarizes our research and developmentR&D expenses incurred during the nine months ended September 30, 20222023 and 2021:
Nine Months Ended September 30, | ||||||||||||||||
2022 | 2021 | $ change | % change | |||||||||||||
Research and Development expenses | ||||||||||||||||
External clinical-related expenses | 30,150 | 31,319 | (1,169 | ) | (4 | %) | ||||||||||
Employee-related costs | 7,761 | 10,525 | (2,764 | ) | (26 | %) | ||||||||||
Share-based payment expenses | 1,596 | 1,747 | (151 | ) | (9 | %) | ||||||||||
Depreciation, amortization and other costs | 6,423 | 15,072 | (8,649 | ) | (57 | %) | ||||||||||
Total Research and Development expenses | 45,930 | 58,663 | (12,733 | ) | (22 | %) | ||||||||||
Nine Months Ended September 30, | ||||||||||||||||
Research and Development expenses | 2023 | 2022 | $ change | % change | ||||||||||||
External clinical-related expenses | 34,170 | 30,150 | 4,020 | 13 | % | |||||||||||
Employee-related costs (excl. share-based payments) | 9,797 | 7,761 | 2,036 | 26 | % | |||||||||||
Share-based payment expenses | 1,886 | 1,596 | 290 | 18 | % | |||||||||||
Depreciation, amortization and other costs | 1,595 | 6,423 | (4,827 | ) | (75 | %) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Research and Development expenses | 47,448 | 45,930 | 1,518 | 3 | % | |||||||||||
|
|
|
|
|
|
|
|
Research and Development expenses decreasedincreased by $12.7$1.5 million for the nine months ended September 30, 20222023, compared to the nine months ended September 30, 2021 primarily2022, mainly due to a decreasethe increase by $4.0 million and by $2.0 million in external clinical-related expenses as main componentand in employee-related costs (excl. share- based payments) respectively, to support research and development activities (1) after the initiation of the work on clinical studies suchVITESSE trial with the first patient screened in March 2023, and (2) as REALISE and EPITOPE has been finalized during the year 2021. We have also continued to practice financial discipline and implemented further cost containment strategies.
Increases in depreciation, amortizationboth external clinical-related expenses and otheremployee-related costs was primarily due towere partially offset by the reversal of $5.3 million of the loss at completion recorded as other costs on the Phase II clinical trial conducted as part of the collaboration agreement with Nestlé agreement.
Sales and Marketing expenses
The following table summarizes our sales and marketing expenses incurred during the nine months ended September 30, 20222023 and 2021:
Nine Months Ended September 30, | ||||||||||||||||
2022 | 2021 | $ change | % change | |||||||||||||
Sales and Marketing expenses | ||||||||||||||||
Personnel expenses | 727 | 1,528 | (801 | ) | (52 | %) | ||||||||||
External professional services and other costs | 932 | 1,471 | (538 | ) | (37 | %) | ||||||||||
Total Sales and Marketing expenses | 1,659 | 2,999 | (1,340 | ) | (45 | %) | ||||||||||
nine Months Ended September 30, | ||||||||||||||||
Sales and Marketing expenses | 2023 | 2022 | $ change | % change | ||||||||||||
External professional services | 691 | 243 | 449 | 185 | % | |||||||||||
Employee-related costs (excl. share-based payments) | 454 | 728 | (274 | ) | (38 | %) | ||||||||||
Share-based payment expenses | 103 | (1 | ) | 104 | (10815 | %) | ||||||||||
Depreciation, amortization and other costs | 365 | 690 | (325 | ) | (47 | %) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Sales and Marketing expenses | 1,613 | 1,659 | (46 | ) | (3 | )% | ||||||||||
|
|
|
|
|
|
|
|
Sales and marketing expenses decreased by $1.3$ 0.05 million for the nine months ended September 30, 2022,2023, compared to the nine months ended September 30, 2021, primarily2022, mainly due to a decrease of employee-related costs following departures in employee-related costs.
General and Administrative expenses
The following table summarizes our general and administrative expenses incurred during the nine months ended September 30, 20222023 and 2021:2022:
Nine Months Ended September 30, | ||||||||||||||||
General and Administrative expenses | 2023 | 2022 | $ change | % change | ||||||||||||
External professional services | 6,352 | 4,171 | 2,182 | 52 | % | |||||||||||
Employee-related costs (excl. share-based payments) | 6,023 | 5,139 | 884 | 17 | % | |||||||||||
Share-based payment expenses | 2,811 | 1,822 | 989 | 54 | % | |||||||||||
Depreciation, amortization and other costs | 7,117 | 6,042 | 1,075 | 18 | % | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total General and Administrative expenses | 22,304 | 17,173 | 5,130 | 30 | % | |||||||||||
|
|
|
|
|
|
|
| |||||||||
23
Nine Months Ended September 30, | ||||||||||||||||
2022 | 2021 | $ change | % change | |||||||||||||
General and Administrative expenses | ||||||||||||||||
External professional services | 4,171 | 6,425 | (2,255 | ) | (35 | %) | ||||||||||
Employee-related costs | 5,139 | 7,263 | (2,124 | ) | (29 | %) | ||||||||||
Share-based payment expenses | 1,822 | 2,084 | (263 | ) | (13 | %) | ||||||||||
Depreciation, amortization and other costs | 6,042 | 10,478 | (4,436 | ) | (42 | %) | ||||||||||
Total General and Administrative expenses | 17,173 | 26,250 | (9,077 | ) | (35 | %) | ||||||||||
General and Administrative expenses decreasedincreased by $9.1$5.1 million for the nine months ended September 30, 2022,2023, compared to the nine months ended September 30, 2021, primarily2022, mainly due to a decrease of depreciation, amortizationan increase by $2.2 million for one-time costs associated with financing activities, organizational planning, market research and other costs. We have continued to practice financial discipline and implemented further cost containment strategies.
Financial income (expense)
Our financial income was $3.0 million for the nine months ended September 30, 2023, compared to a financial income of $1.7 million for the nine months ended September 30, 2022, compared to a2022. This item mainly includes financial income of $0.6on our financial assets.
Income tax
Our income tax expense was nil for the nine months ended September 30, 2023 and September 30, 2022.
Net loss
Net loss was $ 61.5 million for the nine months ended September 30, 2021. This item mainly includes foreign exchange income (expense).
Liquidity and Capital Resources
Financial Condition
On September 30, 2022,2023, we had $212.7$149.1 million in cash and cash equivalents compared to $77.3$209.2 million of cash and cash equivalents on December 31, 2021.2022. We have incurred operating losses and negative cash flows from operations since our inception. Net cash used for operating activities was $31.8$66.0 million and $89.5$31.8 million for the nine months ended September 30, 2023 and 2022, and 2021, respectively. For the nine months endedAs of September 30, 2022,2023, we recorded a net loss of $57$ 61.5 million. Our net cash flows provided by financing activities increasedwere $7.0 million during the nine months ended September 30, 2023 that consisted of the ATM program compared to $194.4 million during the nine months ended September 30, 2022, from $(0.1) million duringthat consisted of the nine months ended September 30, 2021. Financing activities consisted mainlyMay 2022 ATM and June 2022 PIPE offering.
Our unaudited condensed consolidated financial statements have been prepared on a going concern basis assuming that based on our current operations, as well as our plans and assumptions, we expect that our balance of cash and cash equivalents at closing date will be sufficient to fund our operations for at least the next 12 months. As such, no adjustments have been made to the unaudited condensed consolidated financial statements relating to the recoverability and classification of the asset carrying amounts or classification of liabilities that might be necessary should we not be able to continue as a going concern.
Sources of Liquidity and Material Cash Requirements
We have incurred net losses each year since our inception. Substantially all of our global offeringnet losses resulted from costs incurred in connection with our development programs and from general and administrative expenses associated with our operations. We have not incurred any bank debt.
Payments associated with Research tax credits (Crédit d’Impôt Recherche) contribute to fund our short-term cash requirements. We intend to seek additional capital as we prepare for the second quarterlaunch of 2022.
In May 2022, we established an At-The-Market (“ATM”) program to offer and sell, including with unsolicited investors who have expressed an interest, a total gross amount of up to $100 million of American Depositary Shares (“ADSs”), each ADS representing one-half of one ordinary share of the Company. The ATM program is intended to be effective through the expiration of the Company’s existing registration statement registering the ADSs to be issued under the ATM program, i.e. until July 16, 2024, unless terminated prior to such date in accordance with the sales agreement or the maximum amount of the program has been reached. The Company’s intent is to use the net proceeds, if any, of sales of ADSs issued under the program, together with its existing cash and cash equivalents, primarily for activities associated with potential approval and launch of Viaskin Peanut, as well as to advance the development of the Company’s product candidates using its Viaskin Peanut platform and for working capital and other general corporate purposes.
Pursuant to the ATM program, the Company issued and completed sales of new Ordinary Shares in the form of ADSs for a total gross amount of $15.3 million on May 4, 2022, and of $7.8 million on June 14, 2023. Respectively, 6,036,238 and 2,052,450 new Ordinary Shares in the form of ADSs were issued through a capital increase without preferential subscription rights of the shareholders reserved to specific categories of persons fulfilling certain characteristics (the “ATM issuance”), at a unit subscription price of $1.27 and $1.90 per ADS, each ADS giving the right to receive one-half of one ordinary share of the Company.
24
We cannot guarantee that we will be able to obtain the necessary financing to meet our needs or to obtain funds at attractive terms and conditions, including as a result of disruptions to the global financial markets. A severe or prolonged economic downturn could result in a variety of risks to us, including reduced ability to raise additional capital when needed or on acceptable terms, if at all.
Material Cash Requirements Due by the period Ended September 30, | ||||||||||||||||||||
2023 | 2024 | 2025 | Thereafter | Total | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
Operating leases | 1,381 | 1,423 | — | — | 2,804 | |||||||||||||||
Purchase obligations - Obligations Under the Terms of CRO Agreements | 12,411 | 36,234 | 7,805 | — | 56,450 | |||||||||||||||
Total | 13,791 | 37,657 | 7,805 | — | 59,254 |
Operating leases
Our corporate headquarters are located in Montrouge, France. Our principal offices occupy a 4,470 square meter facility, pursuant to a lease agreement dated March 3, 2015, and represents a $3$1.2 million cash requirement as of September 30, 20222023 which expires July 31, 2024.
Our primary U.S. office is located in Basking Ridge, New Jersey. In March 8, 2024.
There have been no material changes in our operating leases from those disclosed in the Annual Report.
Purchase obligations - Obligations Under the Terms of CRO Agreements
In connection with the launch of our clinical trials for Viaskin Peanut and Viaskin Milk, we signed agreements with several contract research organizations. Expenses associated with
There have been no material changes in our purchase obligations from those disclosed in the ongoing trials amounted globally to $125.9 million. As of September 30, 2022, the amount we are still obligated to pay in connection with these contracts through 2025 is $56.4 million.
Summary Statement of Cash Flows
The table below summarizes our sources and uses of cash for the nine months ended September 30, 20222023 and 2021.
Nine months ended September 30, | ||||||||||||||||
(Amounts in thousands of U.S. Dollars) | 2022 | 2021 | $ change | % of change | ||||||||||||
Net cash flow used in operating activities | (31,781 | ) | (89,452 | ) | 57,671 | (64 | %) | |||||||||
Net cash flow used in investing activities | (66 | ) | 41 | (107 | ) | (262 | %) | |||||||||
Net cash flow provided by financing activities | 194,403 | (103 | ) | 194,506 | * | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | (27,186 | ) | (8,643 | ) | (18,543 | ) | 215 | % | ||||||||
Net (decrease) increase in cash and cash equivalents | 135,369 | (98,157 | ) | 233,527 | (238 | %) | ||||||||||
Nine months ended September 30, | ||||||||||||||||
(Amounts in thousands of U.S. Dollars) | 2023 | 2022 | $ change | % of change | ||||||||||||
Net cash flow used in operating activities | (65,967 | ) | (31,781 | ) | (34,186 | ) | 108 | % | ||||||||
Net cash flow used in investing activities | (621 | ) | (66 | ) | (555 | ) | 839 | % | ||||||||
Net cash flow provided by financing activities | 6,956 | 194,403 | (187,447 | ) | -96 | % | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | (427 | ) | (27,186 | ) | 26,759 | -98 | % | |||||||||
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Net (decrease) increase in cash and cash equivalents | (60,059 | ) | 135,369 | (195,429 | ) | -144 | % | |||||||||
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Operating Activities
Our net cash flows used in operating activities were $31.8$66.0 million and $89.5$31.8 million during the nine months ended September 30, 2023 and 2022, andrespectively. Our net cash flows used in operating activities increased by $ 34.2 million, mainly due to the repayment in 2022 of the research tax credit receivable relating to fiscal years 2019 to 2021 respectively. Duringfor €24.8 million (corresponding to $28.1 million on the basis of 2021 closing exchange rate). The increase is also explained by the change in trade payables during the nine months period ended September 30, 2022, we received $21.1 million of research tax credit’s reimbursement for2023 compared to the 2019, 2020 and 2021 fiscal year. Excluding research tax credit reimbursement, ournine months period ended September 30, 2022.
Investing Activities
Our net cash flows used in operatinginvesting activities decreased by $31.3were $0.6 million or 35%, mainly due to cost containment measures and to the workforce reduction following full implementation of the new organization
Financing Activities
Our net cash flows provided by financing activities increasedwas $7.0 million during the nine months ended September 30, 2023 that consisted of the ATM in June 2023 compared to $194.4 million during the nine months ended September 30, 2022, from $103,000 during the nine months ended September 30, 2021. Financing activitiesthat consisted mainly of our globalMay 2022 ATM and June 2022 PIPE offering in the second quarter of 2022.
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Off-Balance Sheet Arrangements
We have not entered into any off-balance sheet arrangements and do not have variable interests in variable interest entities.
Smaller Reporting Company Status
We are a smaller reporting company as defined in the Securities Exchange Act of 1934, as amended. We may, and intend to, take advantage of certain of the scaled disclosures available to smaller reporting companies and will be able to take advantage of these scaled disclosures for so long as we are a smaller reporting company. We may be a smaller reporting company in any year in which (i) the market value of our voting and non-voting ordinary shares held by non-affiliates is less than $250.0 million measured on the last business day of our second fiscal quarter or (ii) (a) our annual revenue is less than $100.0 million during the most recently completed fiscal year and (b) the market value of our voting and non-voting ordinary shares held by non-affiliates is less than $700.0 million measured on the last business day of our second fiscal quarter.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
We are a smaller reporting company as defined by Rule 12b-2 of the Annual Report.
Item 4. Controls and Procedures
Disclosure Controls and Procedures
Based on its evaluation as of September 30, 2022,2023, our management, including our Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) were effective to provide reasonable assurance that (i) the information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC'sSEC’s rules and forms, and (ii) such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
Changes in Internal Control Over Financial Reporting
There were no changes in our internal control over financial reporting identified in management'smanagement’s evaluation pursuant to Rules 13a-15(d) or 15d-15(d) of the Exchange Act during the period covered by this Quarterly Report on Form 10-Q that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Limitation on Effectiveness of Controls and Procedures
Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision making can be faulty and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies and procedures. Because of the inherent limitations in a cost-effectivecost- effective control system, misstatements due to error of fraud may occur and not be detected.
PART II – Other information
Item 1. Legal Proceedings
See “Note 2: Significant Events and Transactions – Legal Proceedings” in the notes to the condensed consolidated financial statements included elsewhere in this Report.
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Item 1A. Risk Factors
Our business is subject to risks and events that, if they occur, could adversely affect our financial condition and results of operations and trading price of our securities. In addition to the other information set forth below, therein this Quarterly Report, you should carefully consider the factors described in Part I, Item 1A. “Risk Factors” of our Annual Report. There have been no material changes in our risk factors from those disclosed in the Annual Report.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
During the nine months ended September 30, 2022,2023, we issued the following unregistered securities:
On March 23, 2023, the issuance of |
• | On May 19, 2023, the |
• | On May 22, 2023, the |
• | On May 24, 2023, the |
• | On September 23, 2023, the |
None of the foregoing transactions involved any underwriters, underwriting discounts or commissions, or any public offering. We believe these transactions were exempt from registration under the Securities Act in reliance on Section 4(a)(2) of the Securities Act or Regulation S promulgated under Section 5 of the Securities Act, as transactions by an issuer not involving any public offering or as offerings made to non-U.S. resident employees pursuant to an employee benefit plan established and administered in accordance with the law of a country other than the United States (namely, the Republic of France) and in accordance with that country’s practices and documentation. All recipients had adequate access, through their relationships with us, to information about us. The sales of these securities were made without any general solicitation or advertising.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
Not applicable.
Item 6. Exhibits.
Exhibit Index
Exhibit | Description | Incorporated by Reference | ||||||||
Schedule/ Form | File Number | Exhibit | File Date | |||||||
3.1 | By-laws (statuts) of the registrant (English translation) | 10-Q | 001- 36697 | 3.1 | 5/04/23 | |||||
31.1 | Certificate of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, as amended | |||||||||
31.2 | Certificate of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, as amended | |||||||||
32.1* | Certificate of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002, as amended | |||||||||
101.INS | XBRL Instance Document | |||||||||
101.SCH | XBRL Taxonomy Extension Schema Document | |||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |
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Exhibit | Description | Incorporated by Reference | ||||||||||||||||
Form | File Number | Form | Exhibit | File Date | ||||||||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |||||||||||||||||
101.LAB | XBRL Taxonomy Extension Labels Linkbase Document | |||||||||||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |||||||||||||||||
104 | Cover Page Interactive Data File, formatted in Inline XBRL and contained in Exhibit 101. |
* | Furnished herewith and not deemed to be “filed” for purposes of Section 18 of the Exchange Act, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act (whether made before or after the date of the Form 10-Q), irrespective of any general incorporate language contained in such filing. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrationregistrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
DBV Technologies S.A. | ||||||||
(Registrant) | ||||||||
Date: | By: | /s/ Daniel Tassé | ||||||
Daniel Tassé | ||||||||
Chief Executive Officer | ||||||||
(Principal Executive Officer) | ||||||||
Date: | By: | /s/ Sébastien Robitaille | ||||||
Sébastien Robitaille | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial and Accounting Officer) |
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