Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document and Entity Information | |
Entity Registrant Name | Addex Therapeutics Ltd. |
Entity Central Index Key | 0001574232 |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Shell Company | false |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Amendment Flag | false |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2020 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Common Stock, Shares Outstanding | 27,118,774 |
Entity Interactive Data Current | Yes |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - CHF (SFr) | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | SFr 18,695,040 | SFr 31,536,803 |
Other financial assets | 64,930 | 13,968 |
Receivables | 68,373 | 118,028 |
Prepayments and deferred costs | 661,221 | 720,063 |
Total current assets | 19,489,564 | 32,388,862 |
Non-current assets | ||
Right-of-use assets | 565,344 | 543,340 |
Property, plant and equipment | 67,760 | 27,626 |
Non-current financial assets | 59,144 | 68,911 |
Total non-current assets | 692,248 | 639,877 |
Total assets | 20,181,812 | 33,028,739 |
Current liabilities | ||
Current lease liabilities | 308,611 | 373,025 |
Payables and accruals | 2,491,927 | 4,196,411 |
Contract liability | 733,668 | 945,737 |
Deferred income | 86,481 | 165,389 |
Total current liabilities | 3,620,687 | 5,680,562 |
Non-current liabilities | ||
Non-current lease liabilities | 258,785 | 177,220 |
Retirement benefits obligations | 1,692,537 | 1,481,738 |
Deferred income | 165,390 | |
Total non-current liabilities | 1,951,322 | 1,824,348 |
Equity | ||
Share capital | 32,848,635 | 32,848,635 |
Share premium | 286,888,354 | 286,375,977 |
Reserves | 8,578,702 | 7,146,506 |
Accumulated deficit | (313,705,888) | (300,847,289) |
Total equity | 14,609,803 | 25,523,829 |
Total liabilities and equity | SFr 20,181,812 | SFr 33,028,739 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - CHF (SFr) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated Statements of Comprehensive Loss | |||
Revenue from contract with customer | SFr 3,612,819 | SFr 2,762,830 | SFr 6,043,855 |
Other income | 266,324 | 70,835 | 658,818 |
Operating costs | |||
Research and development | (10,373,200) | (12,453,876) | (4,918,793) |
General and administration | (5,749,217) | (4,983,946) | (3,208,505) |
Total operating costs | (16,122,417) | (17,437,822) | (8,127,298) |
Operating loss | (12,243,274) | (14,604,157) | (1,424,625) |
Finance income | 35,304 | 36,874 | |
Finance expense | (650,629) | (213,321) | (220,173) |
Finance costs | (615,325) | (176,447) | (220,173) |
Net loss before tax | (12,858,599) | (14,780,604) | (1,644,798) |
Income tax expense | 0 | 0 | 0 |
Net loss for the year | SFr (12,858,599) | SFr (14,780,604) | SFr (1,644,798) |
Basic and diluted loss per share for loss attributable to the ordinary equity holders of the Company | SFr (0.48) | SFr (0.56) | SFr (0.07) |
Items that will never be reclassified to the statement of comprehensive loss: | |||
Remeasurements of retirement benefits obligations | SFr (233,529) | SFr (745,855) | SFr (375,479) |
Items that may be classified subsequently to the statement of comprehensive loss: | |||
Exchange difference on translation of foreign operations | (4,069) | (838) | (181) |
Other comprehensive loss for the year, net of tax | (237,598) | (746,693) | (375,660) |
Total comprehensive loss for the year | SFr (13,096,197) | SFr (15,527,297) | SFr (2,020,458) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - CHF (SFr) | Share Capital | Share Premium | Treasury Shares Reserve | Foreign Currency Translation Reserve | Other Reserves | Accumulated Deficit | Total |
Balance at beginning of year at Dec. 31, 2017 | SFr 15,384,988 | SFr 264,852,008 | SFr (2,019,877) | SFr (652,142) | SFr 8,199,437 | SFr (284,421,887) | SFr 1,342,527 |
Net loss for the year | (1,644,798) | (1,644,798) | |||||
Other comprehensive loss | (181) | (375,479) | (375,660) | ||||
Total comprehensive loss for the year | (181) | (375,479) | (1,644,798) | (2,020,458) | |||
Issue of shares | 13,179,043 | 24,461,056 | 37,640,099 | ||||
Cost of share capital issuance | (2,963,415) | (2,963,415) | |||||
Value of share-based services | 2,298,933 | 2,298,933 | |||||
Value of Warrants | 3,308,982 | 3,308,982 | |||||
Movement in treasury shares: | |||||||
Capital increase | (568,902) | (568,902) | |||||
Settlement of suppliers invoices | 120,908 | 87,176 | 208,084 | ||||
Net sales (purchases) under liquidity agreement | 6,355 | (11,545) | (5,190) | ||||
Balance at end of year at Dec. 31, 2018 | 28,564,031 | 286,476,912 | (2,513,148) | (652,323) | 13,431,873 | (286,066,685) | 39,240,660 |
Net loss for the year | (14,780,604) | (14,780,604) | |||||
Other comprehensive loss | (838) | (745,855) | (746,693) | ||||
Total comprehensive loss for the year | (838) | (745,855) | (14,780,604) | (15,527,297) | |||
Issue of shares | 4,284,604 | 4,284,604 | |||||
Cost of share capital issuance | (170,411) | (170,411) | |||||
Value of share-based services | 1,685,965 | 1,685,965 | |||||
Movement on warrants | (288) | (288) | |||||
Movement in treasury shares: | |||||||
Capital increase | (4,284,604) | (4,284,604) | |||||
Settlement of suppliers invoices | 92,604 | 196,610 | 289,214 | ||||
Net sales (purchases) under liquidity agreement | (23,128) | 29,114 | 5,986 | ||||
Balance at end of year at Dec. 31, 2019 | 32,848,635 | 286,375,977 | (6,572,316) | (653,161) | 14,371,983 | (300,847,289) | 25,523,829 |
Net loss for the year | (12,858,599) | (12,858,599) | |||||
Other comprehensive loss | (4,069) | (233,529) | (237,598) | ||||
Total comprehensive loss for the year | (4,069) | (233,529) | (12,858,599) | (13,096,197) | |||
Value of share-based services | 1,176,413 | 1,176,413 | |||||
Movement in treasury shares: | |||||||
Settlement of suppliers invoices | 78,555 | 207,190 | 285,745 | ||||
Net sales (purchases) under liquidity agreement | 17,772 | (46,809) | (29,037) | ||||
Other net sales of treasury shares | 416,050 | 333,000 | 749,050 | ||||
Balance at end of year at Dec. 31, 2020 | SFr 32,848,635 | SFr 286,888,354 | SFr (6,078,935) | SFr (657,230) | SFr 15,314,867 | SFr (313,705,888) | SFr 14,609,803 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CHF (SFr) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated Statements of Cash Flows | |||
Net loss for the year | SFr (12,858,599) | SFr (14,780,604) | SFr (1,644,798) |
Adjustments for: | |||
Depreciation | 378,754 | 333,844 | 2,937 |
Disposal of right-of-use assets | (4,992) | ||
Value of share-based services | 1,176,413 | 1,685,965 | 2,298,933 |
Pension costs | (22,730) | 96,532 | 20,008 |
Finance net cost | 686,886 | 234,663 | 123,840 |
(Increase)/ decrease in other financial assets | (50,962) | (5,985) | 3,308 |
Decrease / (increase) in receivables | 49,655 | 154,988 | (77,134) |
Decrease/ (increase) in prepayments | 221,680 | (520,653) | (40,487) |
(Decrease)/ increase in payables and accruals | (1,585,550) | 1,966,160 | 1,083,315 |
(Decrease)/ increase in contract liability | (212,069) | 732,993 | 212,744 |
(Decrease)/ increase in deferred income | (244,298) | 330,779 | (439,022) |
Services paid in shares | 285,745 | 289,214 | 208,085 |
Net cash (used in) / from operating activities | (12,180,067) | (9,482,104) | 1,751,729 |
Cash flows from investing activities | |||
Purchase of property, plant and equipment | (59,414) | (28,459) | (9,054) |
Purchase of non-current financial assets | (14,795) | (47,317) | |
Net cash used in investing activities | (59,414) | (43,254) | (56,371) |
Cash flows from financing activities | |||
Proceeds from capital increase | 40,488,180 | ||
Costs / deferred costs paid on issue of shares | (272,005) | (61,244) | (2,963,415) |
Sale / (purchase) of treasury shares | 720,013 | 5,986 | (5,373) |
Principal element of lease payment | (367,412) | (316,793) | |
Interests received | 35,305 | 36,874 | |
Interests paid | (69,502) | (128,518) | (134,307) |
Net cash (used in) / from financing activities | 46,399 | (463,695) | 37,385,085 |
Increase / (decrease) in cash and cash equivalents | (12,193,082) | (9,989,053) | 39,080,443 |
Cash and cash equivalents at beginning of the year | 31,536,803 | 41,670,158 | 2,579,248 |
Exchange difference on cash and cash equivalents | (648,681) | (144,302) | 10,467 |
Cash and cash equivalents at end of the year | SFr 18,695,040 | SFr 31,536,803 | SFr 41,670,158 |
General information
General information | 12 Months Ended |
Dec. 31, 2020 | |
General information | |
General information | 1. General information Addex Therapeutics Ltd (the “Company”), formerly Addex Pharmaceuticals Ltd, and its subsidiaries (together, the “Group”) are a clinical stage pharmaceutical group applying its leading allosteric modulator drug discovery platform to discovery and development of small molecule pharmaceutical products, with an initial focus on central nervous system disorders. The Company is a Swiss stockholding corporation domiciled c/o Addex Pharma SA, Chemin des Aulx 12, CH1228 Plan-les-Ouates, Geneva, Switzerland and the parent company of Addex Pharma SA, Addex Pharmaceuticals France SAS and Addex Pharmaceuticals Inc. registered in Delaware with its principal business location in San Francisco, California, United States. Its registered shares are traded at the SIX, Swiss Exchange, under the ticker symbol ADXN. On January 29, 2020, the Group listed on the Nasdaq Stock Market, American Depositary Shares (ADSs) under the symbol “ADXN”, without a new issuance of securities. ADSs represents shares that continue to be admitted to trading on SIX Swiss Exchange. These consolidated financial statements have been approved for issuance by the Board of Directors on March 9, 2021. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2020 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 2. Summary of significant accounting policies The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. 2.1 The consolidated financial statements of Addex Therapeutics Ltd have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (“IASB”), and under the historical cost convention. The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in note 4 “Critical accounting estimates and judgements”. Due to rounding, numbers presented throughout these consolidated financial statements, may not add up precisely to the totals provided. All ratios and variances are calculated using the underlying amount rather than the presented rounded amount. Where necessary, comparative figures have been revised to conform with the current year 2020 presentation. 2.2 New and amended standards adopted by the Group A number of new or amended standards and interpretations became applicable for financial periods beginning on or after January 1, 2020. The Group noted that these new or amended standards did not have a material impact on the Group’s financial position or disclosures made in the condensed consolidated financial statements. New standards and interpretations not yet adopted by the Group The Group is currently assessing the potential impacts of the various new and revised standards and interpretations that will be mandatory from January 1, 2021 which the Group has not yet applied. Based on an analysis to date, the Group does not anticipate that these will have a material impact on the Group's overall results and financial position. The Group is also assessing other new and revised standards which are not mandatory until after 2021. Other standards adopted by the Group prior to January 1, 2020 On January 1, 2019, the Group adopted IFRS 16 Leases, which replaced IAS 17 Leases and related Interpretations, applied by the Group until December 31, 2018. The Group leases various offices and equipment, which are recorded as right-of-use assets and the corresponding liabilities on the balance sheet at the date at which the leased assets are available for use by the Group. 2.3 Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de‑consolidated from the date that control ceases. The Company currently consolidates the financial operations of its three fully-owned subsidiaries, Addex Pharma SA, which is registered in Plan-Les-Ouates, Switzerland, Addex Pharmaceuticals Inc., which is registered in Delaware, United States with its principal business location in San Francisco, United States and Addex Pharmaceuticals France SAS which is registered in Archamps, France. Inter‑company transactions, balances and unrealized gains on transactions between Group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. The reporting date of all Group companies is December 31. 2.4 The Group operates in one segment, which is the discovery, development and commercialization of small‑molecule pharmaceutical products. A single management team that reports to the chief executive officer comprehensively manages the entire business. The chief operating decision‑maker is the Chief Executive Officer who reviews the statement of operations of the Group on a consolidated basis, makes decisions and manages the operations of the Group as a single operating segment. The Group’s activities are not affected by any significant seasonal effect. Revenue is attributable to the Company’s country of domicile, Switzerland. 2.5 Functional and presentation currency Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The consolidated financial statements are presented in Swiss francs, which is the Group’s presentation currency. Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are re‑measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year‑end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of comprehensive loss. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the statement of comprehensive loss within ‘finance cost’. Group companies The results and financial position of the Group’s subsidiary that has a functional currency different from the presentation currency are translated into the presentation currency as follows: · assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet; · income and expenses for each statement of comprehensive loss are translated at the average exchange rate; and · all resulting exchange differences are recognized in other comprehensive loss. 2.6 Property, plant and equipment are stated at historical cost less accumulated depreciation, and impairment (if any). Historical cost includes expenditure that is directly attributable to the acquisition of the item. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of comprehensive loss d uring the financial period in which they are incurred. Depreciation is calculated using the straight‑line method to allocate their cost to their residual values over their estimated useful lives as follows: Computer equipment 3 years Laboratory equipment 4 years Furniture and fixtures 5 years Chemical library 5 years The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount (see note 2.7). Gains and losses on disposals are determined by comparing proceeds with the carrying amount and are included in the statement of comprehensive loss. 2.7 Assets that are subject to depreciation or amortization are reviewed for impairment annually, and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). Prior impairment of non‑financial assets other than goodwill is reviewed for possible reversal at each reporting date. 2.8 The Group has one category of financial assets, namely “receivables”. Receivables are non‑derivative financial assets with fixed or determinable payments that are not quoted in an active market. These assets are held for collection of contractual cash flows which represent solely the payment of principal and interest. They arise when the Group provides money, goods or services directly to a debtor with no intention of trading the receivable. They are included in current assets, except for maturities greater than 12 months after the balance sheet date, which are classified as non‑current assets. Receivables are included in other current assets in the balance sheet (see note 7). Receivables are initially measured at fair value and subsequently measured at amortized cost. The amortized cost of a financial asset is the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount, adjusted for any loss allowance. The gross carrying amount of a financial asset is the amortized cost of a financial asset before adjusting for any loss allowance. Receivables are derecognized when settled. The Company classifies a contract asset as a receivable when the Company’s right to consideration is unconditional. If the Company transfers control of goods or services to a customer before the customer pays consideration, the Company records either a contract asset or a receivable depending on the nature of the Company’s right to consideration for its performance. Contract assets and contract liabilities arising from the same contract are netted and presented as either a single net contract asset or net contract liability. Impairment of financial assets The Group recognizes a loss allowance for expected credit losses on trade receivables, contract assets and security rental deposits that are measured at amortized cost. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument. The Group always recognizes lifetime expected credit losses(“ECL”) for trade receivables and contract assets where applicable. The ECL on these financial assets are estimated using a provision matrix based on the Group’s historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate. Lifetime ECL represents the ECL that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date. 2.9 Cash and cash equivalents include cash on hand, deposits held at call with banks and other short‑term highly liquid investments with original maturities of three months or less. They are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Any bank overdrafts are not netted against cash and cash equivalents but are shown as part of current liabilities on the consolidated balance sheet. 2.10 Shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown as a deduction, net of tax, from the proceeds. Where any Group company purchases the Company’s equity share capital (treasury shares), the consideration paid, including any directly attributable incremental cost (net of income taxes) is recorded as a deduction from equity attributable to the Company’s equity holders as a treasury share reserve until the shares are cancelled, reissued or disposed of. When such shares are subsequently sold or reissued, any consideration received, net of any directly attributable incremental transaction costs and the related income tax effect, the nominal amount is reversed from the treasury share reserve, with any remaining difference to the total transaction value being recognized in share premium. The Company has entered into a liquidity contract where an independent broker buys and sells the Company’s shares held in the broker’s custody. Such shares are presented in the treasury share reserve. The Company also uses treasury shares to partially settle services rendered by third and related parties. When shares are issued for this purpose, the nominal share value is recognized as a treasury share reserve and the value above par is presented as a share premium. 2.11 Equity instruments issued by the Group are recorded at the fair value of the proceeds received, net of direct issuance costs. 2.12 Trade payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method. All payables have a contract maturity within 1 year. 2.13 Grants are not recognized until there is reasonable assurance that the Group will comply with the terms and conditions of the grant and that the grants will be received. Grants are recognized as other income in the statement of comprehensive loss on a systematic basis over the periods in which the Group recognizes as expenses the related costs for which the grant is intended to compensate. Specifically, grants whose primary conditions is that the Group should undertake specific research activities within a defined period of time, are recognized as deferred income in the consolidated statement of financial position and transferred to the statement of comprehensive loss on a systematic and rationale basis over the defined timeframe. 2.14 Deferred income tax is recorded in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, if the deferred income tax arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss, it is not accounted for. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realized, or the deferred income tax liability is settled. Deferred income tax assets are recognized to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. Deferred income tax is recorded on temporary differences arising on investments in subsidiaries, except where the Group deems it probable that the temporary difference will not reverse in the foreseeable future. Potential deferred income tax assets from tax loss carry forwards exceed deferred tax liabilities. Deferred income tax assets from tax loss carry forwards are initially recognized to the extent that there are suitable deferred income tax liabilities, then to the extent that the realization of the related tax benefit through future taxable profits is probable. 2.15 The Group operates one pension scheme. The scheme is generally funded through payments to insurance companies or trustee‑administered funds, determined by periodic actuarial calculations. The Group has defined benefit plans. A defined benefit plan is a pension plan that defines an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized immediately in other comprehensive loss and past‑service costs are recognized immediately in the statement of comprehensive loss. The liability recognized in the balance sheet in respect of defined benefit pension plans is the defined benefit obligation at the balance sheet date minus the fair value of the plan assets. The defined benefit obligation is calculated at least annually by an independent actuary using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high‑quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability. 2.16 The Group operates an equity sharing certificates’ equity incentive plan, a share option plan, and a share purchase plan. The Group also from time-to-time grants warrants to brokers and investors. The fair value of the services received in exchange for the grant or transfer of equity sharing certificates, options, shares or warrants is recognized in the consolidated financial statements over the period for which the services are received. The total amount to be recognized over the vesting period is determined by reference to the fair value of the equity incentive unit granted or transferred. The fair value of instruments granted includes any market performance conditions and excludes the impact of any service and non‑market performance vesting conditions. Service and non‑market performance conditions are included in assumptions about the number of equity incentive units that are expected to vest. At each balance sheet date, the Group revises its estimates for the number of equity incentive units that are expected to vest. It recognizes the impact of the revision to original estimates, if any, in the statement of comprehensive loss, with a corresponding adjustment to equity. The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the equity incentive units are exercised. 2.17 The Group recognizes revenue from the license of intellectual property and providing research and development services: License of intellectual property If the license to the Group’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Group recognizes revenues when the license conveys a right of use, or there is a right of access to the underlying intellectual property. For licenses that are sold in conjunction with a related service, the Group uses judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time. If the performance obligation is settled over time, the Group determines the appropriate method of measuring progress for purposes of recognizing license revenue. The Group evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. Research and development services The Group has an arrangement with its partner that includes deploying its employees for research and development activities. The Group assesses if these research and development activities are considered distinct in the context of the respective contract and, if so, they are accounted for as a separate performance obligation. This revenue is calculated based on the costs incurred (input method) in accordance with the respective contract, and recorded within “Revenue from contract with customer ” over time as the activities are performed. Contract balances The Group receives payments and determines credit terms from its customers for its various performance obligations based on billing schedules established in each contract. The actual timing of the income recognition, billings and cash collections may result in other current receivables, accrued revenue (contract assets), and deferred revenue (contract liabilities) being recorded on the balance sheets. Amounts are recorded as other current receivables when the Group’s right to consideration is unconditional. The Group does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised goods or services to the customer will be one year or less. Under IFRS 15, the Group recognizes as revenue its non-refundable license fees, milestone, research activities and royalties when its customer obtains control of promised services, in an amount that reflects the consideration which the Group expects to receive in exchange for those rendered services. To assess revenue recognition for arrangements that the Group determines are within the scope of IFRS 15, the Group performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Group satisfies a performance obligation. The Group only applies the five-step model to contracts when it is probable that the Group will collect the consideration it is entitled to in exchange for services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of IFRS 15, the Group assesses the services promised within each contract and determine those that are performance obligations and assess whether each promised service is distinct. The Group uses the most likely method to estimate any variable consideration and include such consideration in the amount of the transaction price based on an estimated stand-alone selling price. Revenue is recognized for the respective performance obligation when (or as) the performance obligation is satisfied. 2.18 Interest received or paid on cash and cash equivalents are classified in the statement of cash flows under financing activities. 2.19 The Group assesses whether a contract is or contains a lease, at inception of the contract. The Group recognizes a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets (less than USD 5 thousand). For these leases, the Group recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed. The lease liability is initially measured at the present value of the lease payments as from the commencement date of the lease until the expected termination date. In determining the lease term, management consider all facts and circumstances that create an economic incentive to exercise an extension option, or not to exercise a termination option. Extension option are only considered if the lease is reasonably certain to be extended. The assessment of reasonable certainty is only revised if a significant event or a significant change in circumstances, that is within the control of the lessees, occurs. The lease payments are discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. The lease liability is presented as a separate line in the consolidated statement of financial position. The interest expense is presented in the line finance expenses in the consolidated statement of comprehensive loss. The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day, less any lease incentives received and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses. They are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease. The right-of-use assets are presented as a separate line in the consolidated statement of financial position. When the Group renegotiates the contractual terms of a lease with the lessor, the accounting depends on the nature of the modification: - - - All lease payments on leases are presented as part of the cash flow from financing activities, except for the short-term and low value leases cash flows, which are booked under operating activities. 2.20 Research and development costs are expensed as incurred. Costs incurred on development projects are recognized as intangible assets when the following criteria are fulfilled: · it is technically feasible to complete the intangible asset so that it will be available for use or sale; · management intends to complete the intangible asset and use or sell it; · there is an ability to use or sell the intangible asset; · it can be demonstrated how the intangible asset will generate probable future economic benefits; · adequate technical, financial and other resources to complete the development and to use or sell the intangible asset are available; and · the expenditure attributable to the intangible asset during its development can be reliably measured. In the opinion of management, due to uncertainties inherent in the development of the Group’s products, the criteria for development costs to be recognized as an asset, as prescribed by IAS 38, “Intangible Assets”, are not met. |
Financial risk management
Financial risk management | 12 Months Ended |
Dec. 31, 2020 | |
Financial risk management | |
Financial risk management | 3. Financial risk management 3.1 The Group’s activities expose it to a variety of financial risks: market risk, credit risk, liquidity risk and capital risk. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group’s financial performance. Risk management is carried out by the Group’s finance department (Group Finance) under the policies approved by the Board. Group Finance identifies, evaluates and in some instances economically hedges financial risks in close co‑operation with the Group’s operating units. The Board provides written guidance for overall risk management, as well as written policies covering specific areas, such as foreign exchange risk, interest‑rate risk, use of derivative financial instruments and non‑derivative financial instruments, credit risk and investing excess liquidity. Market risk and foreign exchange risk The Group operates internationally and is exposed to foreign exchange risk arising from various exposures with respect to the Euro, US dollar and UK pound. Foreign exchange risk arises from future commercial transactions, recognized assets and liabilities and net investments in foreign operations. To manage foreign exchange risk Group Finance maintains foreign currency cash balances to cover anticipated future requirements. The Group’s risk management policy is to economically hedge 50% to 100% of anticipated transactions in each major currency for the subsequent 12 months. The Group has a subsidiary in France and in United States of America, whose net assets are exposed to foreign currency translation risk. In 2020, a 10% increase or decrease in the EUR/CHF exchange rate would have resulted in a CHF 4,064 (respectively CHF 19,920 in 2019 and CHF 52,398 in 2018) decrease or increase in net loss and shareholders’ equity as at December 31, 2020, a 10% increase or decrease in the GBP/CHF exchange rate would have resulted in a CHF 14,723 (respectively CHF 12,489 in 2019 and CHF 15,965 in 2018) decrease or increase in net loss and shareholders’ equity as at December 31, 2020 and a 10% increase or decrease in the USD/CHF exchange rate would have resulted in a CHF 644,865 (respectively CHF 972,596 in 2019 and CHF 1,224,506 in 2018) increase or decrease in net loss and shareholders’ equity as at December 31, 2020. The Group is not exposed to equity price risk or commodity price risk as it does not invest in these classes of investment. Interest rate risk The Group’s exposure to interest rate fluctuations is limited because the Group has no interest‑bearing indebtedness. The Company’s Swiss francs cash holdings are subject to negative interest rates at certain thresholds defined by its bank counterparties. A 10% increase or decrease in the interest rates charged by the counterparties would not have had a material impact on the net loss for the period. Credit risk Credit risk is managed on a Group basis. Credit risk arises from cash and cash equivalents and deposits with banks, as well as credit exposures to collaboration partners. The Group has a limited number of collaboration partners and consequently has a significant concentration of credit risk. The Group has policies in place to ensure that credit exposure is kept to a minimum and significant concentrations of credit risk are only granted for short periods of time to high credit quality partners. The Group’s policy is to invest funds in low-risk investments including interest bearing deposits. For banks and financial institutions, only independently rated parties with a minimum rating of “A” are accepted (see note 6). Liquidity risk The Group’s principal source of liquidity is its cash reserves which are obtained through the sale of new shares and to a lesser extent the sale of its research and development stage products. Group Finance monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs. The ability of the Group to maintain adequate cash reserves to sustain its activities in the medium term is highly dependent on the Group’s ability to raise further funds from the licensing of its development stage products and the sale of new shares. Consequently, the Group is exposed to significant liquidity risk (see note 4). 3.2 The Group is not regulated and not subject to specific capital requirements. The amount of equity depends on the Group’s funding needs and statutory capital requirements. The Group monitors capital periodically on an interim and annual basis. From time to time, the Group may take appropriate measures or propose capital increases to its shareholders to ensure the necessary capital remains intact. The Group did not have any short‑term or long‑term debt outstanding as of December 31, 2020 and 2019. The ability of the Group to maintain adequate cash reserves to continue its activities in the medium term is subject to risk as it is highly dependent on the Group’s ability to raise further funds from the sale of new shares. The Group’s objectives when managing capital based on its net debt are to safeguard the Group’s ability to continue as a going concern in order to ensure the financing of successful research and development activities so that future profits can be generated and to maintain sufficient financial resources to mitigate against risks and unforeseen events. A reconciliation of the net debt position is detailed as follows: Other Cash and cash financial Leases equivalents assets Total Net debt as at January 1, 2019 (544,510) 41,670,158 7,983 41,133,631 Cash flows 316,348 (9,989,053) 5,955 (9,666,750) Acquisition – Leases (322,528) — — (322,528) Foreign exchange differences 445 (144,302) — (143,857) Net debt as at December 31, 2019 (550,245) 31,536,803 13,938 31,000,496 Cash flows 367,412 (12,193,082) 50,992 (11,774,678) Acquisition – Leases (27,612) — — (27,612) Effect of modification to lease terms (434,150) — — (434,150) Disposals 77,199 — — 77,199 Foreign exchange differences — (648,681) — (648,681) Net debt as at December 31, 2020 (567,396) 18,695,040 64,930 18,192,574 In addition, the maturity profile of the Group’s financial liabilities is presented in the table below: Total Carrying Less than 1 to 5 More than cash out amount At December 31, 2020 1 Year Years 5 Years flows liabilities Lease Liabilities 331,911 270,133 — 602,044 567,396 Total Carrying Less than 1 to 5 More than cash out amount At December 31, 2019 1 Year Years 5 Years flows liabilities Lease Liabilities 392,954 182,664 — 575,618 550,245 Lease liabilities relate to the rent of laboratories, equipment, offices and related spaces used by the Group. 3.3 The nominal value less estimated credit adjustments of trade receivables and payables are assumed to approximate to their fair values due to the short‑term maturity of these instruments and are held at their amortized cost in accordance with IFRS 9. The fair value of other financial assets and liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments. |
Critical accounting estimates a
Critical accounting estimates and judgments | 12 Months Ended |
Dec. 31, 2020 | |
Critical accounting estimates and judgments | |
Critical accounting estimates and judgments | 4. Critical accounting estimates and judgments The Group makes estimates and assumptions concerning the future. These estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities or may have had a significant impact on the reported results are disclosed below: Going concern The Group’s accounts are prepared on a going concern basis. To date, the Group has financed its cash requirements primarily from share issuances and licensing certain of its research and development stage products. The Group is a development‑stage enterprise and is exposed to all the risks inherent in establishing a business. The Group maintains detailed financial forecasts and monitors actual results on a regular basis so that measures can be taken to ensure the Group remains solvent. COVID-19 In early 2020 a coronavirus disease (COVID-19) pandemic developed globally resulting in a significant number of infections and negative effects on economic activity. The Group is actively monitoring the situation and is taking any necessary measures to respond to the situation in cooperation with the various stakeholders. On March 18, 2020, the Group announced the suspension of the initiation of a placebo-controlled Phase 2b/3 pivotal clinical trial of dipraglurant in levodopa-induced dyskinesia associated with Parkinson's disease (dipraglurant PD-LID). The Group decided to suspend the trial based on the inability of planned clinical trial sites in the United States to initiate the trial in full compliance with the Group's planned clinical trial procedures including with respect to data reporting, data monitoring, and the recommendations of various health authorities that the infirm patients who would participate in the trial not risk being exposed to COVID-19 at clinical trial sites. Such sites have been and may continue to be required to focus their limited resources on matters unrelated to our planned clinical trial, thereby decreasing availability, in whole or in part, for services to our planned clinical trial. The Group will not be able to initiate the trial until these risks have been significantly reduced or remediated. Although the Group believes, based on current projections of the pandemic, that it will be able to initiate the trial in the first half of 2021, the duration of the COVID-19 crisis is uncertain and, if the enumerated risks are not addressed, the Group may have to adjust its expectations as to trial initiation, including potentially initiating the trial later in 2021, in order to accommodate the foregoing factors. In addition, the COVID-19 pandemic may affect the operations of the FDA and other health authorities, which could result in delays of reviews and approvals, including with respect to dipraglurant and our other product candidates. Any such delays could increase the cost of our planned clinical trial and increase the uncertainty of receiving approval from the FDA for dipraglurant in PD-LID patients. Depending on the duration of the COVID-19 crisis and continued negative impact on global economic activity, the Group may have to take additional measures that will have a negative impact on the Group's business continuity and may experience certain liquidity restraints as well as incur impairments on its assets. The exact impact on the Group's activities in 2021 and thereafter cannot be reasonably predicted. However, based on the risk mitigation measures undertaken, the Group concluded that there is no material uncertainty that may cast a significant doubt upon the Group's ability to continue as a going concern. Revenue recognition Revenue is primarily from fees related to licenses, milestones and research services. Given the complexity of the relevant agreements, judgements are required to identify distinct performance obligations; allocate the transaction price to these performance obligations and determine when the performance obligations are met. In particular, the Group’s judgement over the estimated stand-alone selling price which is used to allocate the transaction price to the performance obligations is disclosed in note 15. Grants Grants are recorded at their fair value when there is reasonable assurance that they will be received and recognized as income when the group has satisfied the underlying grant conditions. In certain circumstances, grant income may be recognized before explicit grantor acknowledgement that the conditions have been met. Accrued research and development costs The Group records accrued expenses for estimated costs of research and development activities conducted by third party service providers. The Group records accrued expenses for estimated costs of research and development activities based upon the estimated amount of services provided-but not yet invoiced, and these costs are included in accrued expenses on the balance sheets and within research and development expenses in the statements of comprehensive loss. These costs are a significant component of research and development expenses. Accrued expenses for these costs are recorded based on the estimated amount of work completed in accordance with agreements established with these third parties. To date, the Group has not experienced significant changes in the estimates of accrued research and development expenses after a reporting period. However, due to the nature of estimates, the Group may be required to make changes to the estimates in the future as it becomes aware of additional information about the status or conduct of its research activities. Research and development costs The Group recognizes expenditure incurred in carrying out its research and development activities, including development supplies, until it becomes probable that future economic benefits will flow to the Group, which results in recognizing such costs as intangible assets, involving a certain degree of judgement. Currently, such development supplies are associated with pre‑clinical and clinical trials of specific products that do not have any demonstrated technical feasibility. Deferred taxes Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the liability method. Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilized . The probability that taxable profits will be available is assessed by management based on business projections for each relevant entity. The carrying amount of deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled, or the asset is realized based on tax laws and rates that have been enacted or substantively enacted at the reporting date. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the way the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax is recognized in statement of comprehensive loss, except when related to items that are recognized in other comprehensive loss or directly in equity, in which case, the current and deferred tax are recognized in other comprehensive loss or directly in equity. Share‑based compensation The Group recognizes an expense for share‑based compensation based on the valuation of equity incentive units using the Black‑Scholes valuation model. A number of assumptions related to the volatility of the underlying shares and to the risk-free rate are made in this model. Should the assumptions and estimates underlying the fair value of these instruments vary significantly from management’s estimates, then the share‑based compensation expense would be materially different from the amounts recognized. Had these assumptions been modified within their feasible ranges, i.e. a 10% increase or decrease in the volatility assumption and a risk-free rate of 0.5 or zero, and the Group calculated the share‑based compensation based on the higher and lower values of these ranges, share-based compensation expense in 2020 would have been CHF 888,845 or CHF 1,390,306, respectively CHF 1,239,680 or CHF 2,023,158 in 2019 and CHF 1,696,301 or CHF 2,762,285 in 2018. This is compared to the amount recognized as an expense in 2020 of CHF 1,176,413, respectively CHF 1,685,965 in 2019 and CHF 2,298,933 in 2018. Additional information is disclosed in note 14. Pension obligations The present value of the pension obligations is calculated by an independent actuary and depends on a number of assumptions that are determined on an actuarial basis such as discount rates, future salary and pension increases, and mortality rates. Any changes in these assumptions will impact the carrying amount of pension obligations. The Group determines the appropriate discount rate at the end of each period. This is the interest rate that should be used to determine the present value of estimated future cash outflows expected to be required to settle the pension obligations. In determining the appropriate discount rate, the Group considers the interest rates of high‑quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating the terms of the related pension liability. Other key assumptions for pension obligations are based in part on current market conditions. Additional information is disclosed in note 20. |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2020 | |
Segment information | |
Segment information | 5. Segment information Management has identified one single operating segment, related to the discovery, development and commercialization of small-molecule pharmaceutical products. Information about products, services and major customers External income of the Group for the years ended December 31, 2020, 2019 and 2018 is derived from the business of discovery, development and commercialization of pharmaceutical products. Income was earned from the sale of license rights, rendering of research services to a pharmaceutical company and grants earned. Information about geographical areas External income is exclusively recorded in the Swiss operating company. Analysis of revenue from contract with customer and other income by nature is detailed as follows: 2020 2019 2018 Fees from sale of license rights — — 4,876,000 Collaborative research funding 3,612,819 2,762,830 1,167,855 Grants earned 244,298 49,405 609,212 Other service income 22,026 21,430 49,606 Total 3,879,143 2,833,665 6,702,673 Analysis of revenue from contract with customer and other income by major counterparties is detailed as follows: 2020 2019 2018 Indivior PLC 3,612,819 2,762,830 6,043,855 The Michael J. Fox Foundation — — 609,212 Eurostars/Innosuisse 244,298 49,405 — Other counterparties 22,026 21,430 49,606 Total 3,879,143 2,833,665 6,702,673 For more detail, refer to note 15, “Revenue from contract with customer” and note 16 “Other Income”. The geographical allocation of long‑lived assets is detailed as follows: December 31, December 31, 2020 2019 Switzerland 665,012 498,066 United States of America 26,847 141,420 France 389 391 Total 692,248 639,877 The geographical analysis of operating costs is as follows: 2020 2019 2018 Switzerland 16,050,488 17,409,808 8,119,953 United States of America 64,922 21,214 — France 7,007 6,800 7,345 Total operating costs (note 17) 16,122,417 17,437,822 8,127,298 There was capital expenditure of CHF 59,414 in 2020 and CHF 28,459 in 2019. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2020 | |
Cash and cash equivalents | |
Cash and cash equivalents | 6. Cash and cash equivalents December 31, December 31, 2020 2019 Cash at bank and on hand 18,695,040 26,889,923 Short term deposits in USD — 4,646,880 Total cash and cash equivalents 18,695,040 31,536,803 Split by currency: December 31, December 31, 2020 2019 CHF % % USD % % EUR % % GBP % % Total % % The Group pays interests on CHF cash and cash equivalents and earns interests on USD cash and cash equivalents. The Group invests its cash balances into a variety of current and deposit accounts with Swiss banks. In addition, the Group invests a portion of its USD cash in line with its treasury guidelines. As of December 31, 2020, non-used funds received from Eurostars/Innosuisse amount to CHF 86,481 (note 16). All cash and cash equivalents were held either at banks or on hand at December 31, 2020 and December 31, 2019. Credit quality of cash and cash equivalents The table below shows the cash and cash equivalents by credit rating of the major counterparties: December 31, December 31, External credit rating of counterparty 2020 2019 P‑1 / A‑1 18,694,883 31,536,646 Cash on hand 157 157 Total cash and cash equivalents 18,695,040 31,536,803 External credit ratings of counterparties were obtained from Moody’s (P‑1) or Standard & Poor’s (A‑1). |
Other current assets
Other current assets | 12 Months Ended |
Dec. 31, 2020 | |
Other current assets | |
Other current assets | 7. Other current assets December 31, December 31, 2020 2019 Other financial assets 64,930 13,968 Receivables 68,373 118,028 Prepayments 498,382 720,063 Deferred costs 162,839 — Total other current assets 794,524 852,059 The Group applies the IFRS 9 simplified approach to measuring expected credit losses ("ECL"), which uses a lifetime expected loss allowance for all trade receivables and contract assets. As of December 31, 2020, the receivables comprise of four non‑governmental debtors whose combined outstanding balances are CHF 20,577 (five non-governmental debtors for CHF 88,075 as of December 31, 2019). The Group has considered these customers to have a low risk of default based on historic loss rates and forward‑looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. As a result, excepted loss allowance has been deemed as nil as of December 31 , 2020 and December 31, 2019. As of December 31, 2020, prepayments mainly relate to amounts paid to contract research organizations and deferred costs primarily relate to paid legal and auditor fees associated with the preparation of the capital increase executed on January 8, 2021. |
Right-of-use assets
Right-of-use assets | 12 Months Ended |
Dec. 31, 2020 | |
Right-of-use assets | |
Right-of-use assets | 8. Right-of-use assets Properties Equipment Total Year ended December 31, 2019 Opening net book amount — — — Adoption of IFRS16 as at January 1, 2019 483,350 61,160 544,510 Additions 308,987 13,541 322,528 Depreciation charge (296,656) (27,487) (324,143) Exchange differences 445 — 445 Closing net book amount 496,126 47,214 543,340 Properties Equipment Total At December 31, 2019 Cost 792,337 74,701 867,038 Accumulated depreciation (296,211) (27,487) (323,698) Net book value 496,126 47,214 543,340 Properties Equipment Total Year ended December 31, 2020 Opening net book amount 496,126 47,214 543,340 Additions 27,612 — 27,612 Depreciation charge (333,714) (25,760) (359,474) Effect of modification to lease terms 434,150 — 434,150 Disposals (72,504) — (72,504) Exchange differences (7,780) — (7,780) Closing net book amount 543,890 21,454 565,344 At December 31, 2020 Cost 1,111,338 71,168 1,182,506 Accumulated depreciation (567,448) (49,714) (617,162) Net book value 543,890 21,454 565,344 For the year ended December 31, 2020, the Group recorded a depreciation charge of CHF 291,107 (2019: CHF 259,940) as part of research and development expenses and CHF 68,367 (2019: CHF 64,203) as part of general and administration expenses. For the same period, the cash out flows for leases amounted to CHF 367,412 and CHF 316,348 respectively. The maturity analysis of lease liabilities is presented under note 3.2. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment | |
Property, plant and equipment | 9. Property, plant and equipment Furniture & Chemical Equipment fixtures Library Total Year ended December 31, 2019 Opening net book amount 8,868 — — 8,868 Additions 28,459 — — 28,459 Depreciation charge (9,701) — — (9,701) Closing net book amount 27,626 — — 27,626 At December 31, 2019 Cost 1,622,865 7,564 1,207,165 2,837,594 Accumulated depreciation (1,595,239) (7,564) (1,207,165) (2,809,968) Net book value 27,626 — — 27,626 Year ended December 31, 2020 Opening net book amount 27,626 — — 27,626 Additions 59,414 — — 59,414 Depreciation charge (19,280) — — (19,280) Closing net book amount 67,760 — — 67,760 At December 31, 2020 Cost 1,682,279 7,564 1,207,165 2,897,008 Accumulated depreciation (1,614,519) (7,564) (1,207,165) (2,829,248) Net book value 67,760 — — 67,760 For the year ended December 31, 2020, the Group recorded a depreciation charge of CHF 11,759 (2019: CHF 4,732) as part of research and development expenses and CHF 7,521 (2019: CHF 4,969) as part of general and administration expenses. |
Non-current financial assets
Non-current financial assets | 12 Months Ended |
Dec. 31, 2020 | |
Non-current financial assets | |
Non-current financial assets | 10. Non‑current financial assets December 31, December 31, 2020 2019 Security rental deposits 59,144 68,911 Total non‑current financial assets 59,144 68,911 Security rental deposits relate to laboratory and office space which has decreased during 2020. The applicable interest rate to such deposits is immaterial, and therefore, the value approximates amortized cost. |
Payables and accruals
Payables and accruals | 12 Months Ended |
Dec. 31, 2020 | |
Payables and accruals | |
Payables and accruals | 11. Payables and accruals December 31, December 31, 2020 2019 Trade payables 983,545 2,216,147 Social security and other taxes 171,876 107,415 Accrued expenses 1,336,506 1,872,849 Total payables and accruals 2,491,927 4,196,411 All payables mature within 3 months. Accrued expenses primarily relate to R&D services from contract research organizations and consultants. The total payables and accruals have decreased at December 31, 2020 compared to December 31, 2019, mainly due to amounts payable related to the preparation of the dipraglurant PD-LID clinical study at December 31, 2019. The carrying amounts of payables do not materially differ from their fair values, due to their short‑term nature. |
Deferred income
Deferred income | 12 Months Ended |
Dec. 31, 2020 | |
Deferred income | |
Deferred income | 12. Deferred income The Group expects the deferred income to be recognized in the statement of comprehensive loss as follows: December 31, 2020 December 31, 2019 Within one year 86,481 165,389 Within two years — 165,390 Total deferred income 86,481 330,779 The deferred income relates to a grant from Eurostars/Innosuisse described on the note 16 “other income”. |
Share capital
Share capital | 12 Months Ended |
Dec. 31, 2020 | |
Share capital. | |
Share capital | 13. Share capital Number of shares Common Treasury shares shares Total Balance at January 1, 2019 28,564,031 (2,158,476) 26,405,555 Issue of shares — capital increase 4,284,604 (4,284,604) — Settlement of supplier invoices — 196,610 196,610 Net sale of treasury shares under liquidity agreement — 2,983 2,983 Balance at December 31, 2019 32,848,635 (6,243,487) 26,605,148 Settlement of supplier invoices — 207,190 207,190 Net purchase of treasury shares under liquidity agreement — (26,564) (26,564) Other net sale of treasury shares — 333,000 333,000 Balance at December 31, 2020 32,848,635 (5,729,861) 27,118,774 The Company maintains a liquidity contract with Kepler Capital Markets SA (“Kepler”). Under the agreement, the Group has provided Kepler with cash and shares to enable them to buy and sell the Company’s shares. At December 31, 2020, 54,489 (2019: 27,925) treasury shares are recorded under this agreement in the treasury share reserve and CHF 64,930 (2019: CHF 13,968) is recorded in other financial assets. At December 31, 2020 and 2019, the total issued share capital is CHF 32,848,635 consisting of 32,848,635 shares. All shares have a nominal value of CHF 1. On December 28, 2020, the Group sold 333,000 treasury shares for a gross amount of CHF 749,050 under an equity sales agreement entered into with Kepler. For the fiscal year ended December 31, 2020, the Group used 207,190 treasury shares (2019: 196,610) to purchase services from consultants including 114,851 (2019: 113,099) treasury shares for Roger Mills, the Group’s Chief Medical Officer. The total value of consulting services settled in shares was CHF 285,745 (2019: CHF 289,214). Under a liquidity agreement, the Group recorded net purchases of treasury shares of CHF 29,037 (2019: net sales of CHF 5,986). On May 17, 2019, the Company issued 4,284,604 new shares from the authorized capital to its 100% owned subsidiary, Addex Pharma SA at CHF 1. These shares are held as treasury shares. |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based compensation | |
Share-based compensation | 14. Share‑based compensation The total share‑based compensation expense recognized in the statement of comprehensive loss for equity incentive units granted to directors, executives, employees, consultants and investors has been recorded under the following headings: 2020 2019 2018 Research and development 354,934 433,536 880,982 General and administration 821,479 1,252,429 1,417,951 Total share‑based compensation 1,176,413 1,685,965 2,298,933 Analysis of share‑based compensation by equity incentive plan is detailed as follows: 2020 2019 2018 Equity sharing certificate plan 14,644 37,776 77,336 Share purchase plan 49,813 45,593 38,296 Share option plans 1,111,956 1,602,596 2,183,301 Total share‑based compensation 1,176,413 1,685,965 2,298,933 Equity Sharing Certificate Equity Incentive Plan On June 1, 2010, the Company established an equity incentive plan based on equity sharing certificates (“ESCs”) to provide incentives to directors, executives, employees and consultants of the Group. Each ESC provides the holder (i) a right to subscribe for 1,000 shares in the Company, and (ii) a right to liquidation proceeds equivalent to that of shareholders. All rights of the ESCs expire after their defined exercise period with the ownership of the ESCs reverting to the Group. ESCs granted are subject to certain vesting conditions based on service period defined in each grant agreement. The holder of vested ESCs has the right to subscribe to shares at the subscription price if the underlying share price has reached the floor price. The floor and subscription price are defined by the Board of Directors in each grant agreement at the time of issuance. In the event of a change in control, all ESCs are automatically vested. The Group has no legal or constructive obligation to repurchase or settle ESCs in cash. Movements in the number of share subscription rights attached to the ESCs outstanding are as follows: 2020 2019 2018 At January 1 198,750 265,600 275,933 Granted — — — Expired — (66,850) (10,333) Exercised — — — At December 31 198,750 198,750 265,600 At December 31, 2020, of the outstanding 198,750 subscription rights (respectively 2019: 198,750 and 2018: 265,600) attached to the ESCs, 171,750 were exercisable (respectively 2019: 144,750 and 2018: 184,600). On April 1, 2019, the exercise period of 90,750 vested ESCs has been extended for 5 years. Included in share-based compensation for the year 2019, CHF 8,667 relates to the fair value adjustment for exercise period extensions of vested ESCs. The outstanding subscription rights as at December 31, 2020, 2019 and 2018 have the following expiry dates, subscription prices and floor prices: Subscription prices / floor prices (CHF) At December 31, 2020 Expiry date 1.00 / 2.30 2.00 / 2.30 Total 2024 90,750 — 90,750 2027 — 108,000 108,000 Total subscription rights 90,750 108,000 198,750 Subscription prices / floor prices (CHF) At December 31, 2019 Expiry date 1.00 / 2.30 2.00 / 2.30 Total 2024 90,750 — 90,750 2027 — 108,000 108,000 Total subscription rights 90,750 108,000 198,750 Subscription prices / floor prices (CHF) At December 31, 2018 Expiry date 1.00 / 2.30 2.00 / 2.30 Total 2019 151,600 — 151,600 2020 6,000 — 6,000 2027 — 108,000 108,000 Total subscription rights 157,600 108,000 265,600 Share option plans The Company established a share option plan to provide incentives to directors, executives, employees and consultants of the Group. During 2020, the Group granted the following options with vesting over 4 years and a 10-year exercise period as follow: Number Exercise price Expiry date January 1, 2020 38,487 1.64 December 31, 2029 April 1, 2020 1,158,011 1.14 March 31, 2030 July 1, 2020 31,362 1.45 June 30, 2030 Total 2020 1,227,860 During 2019, the Group granted the following options with vesting over 4 years and a 10-year exercise period as follow: Number Exercise price Expiry date January 1, 2019 243,506 2.25 December 31, 2028 July 1, 2019 187,189 1.50 June 30, 2029 October 1, 2019 30,000 1.80 September 30, 2029 Total 2019 460,695 On June 1, 2018 the Group granted 2,467,584 options at an exercise price of CHF 3, with vesting rights over 4 years and a 10-year exercise period. Movements in the number of options outstanding are as follows: 2020 2019 2018 At January 1 5,540,600 5,128,680 2,661,096 Granted 1,227,860 460,695 2,467,584 Exercised — (48,775) — At December 31 6,768,460 5,540,600 5,128,680 At December 31, 2020, of the outstanding 6,768,460 share options (respectively 2019: 5,540,600 and 2018: 5,128,680), 4,235,706 were exercisable (respectively 2019: 2,811,825 and 2018: 1,736,764). On January 1, 2020, the exercise period of 194,687 vested options has been extended for 5 years and share-based compensation related to the fair value adjustment for the exercise period extensions of CHF 25,309 has been recognized in 2020. On April 1, 2019, the exercise period of 506,351 vested options has been extended for 5 years and share-based compensation related to the fair value adjustment for the exercise period extensions of CHF 75,331 has been recognized in 2019. The outstanding share options as at December 31, 2020, 2019 and 2018 have the following expiry dates: Range of exercise prices (CHF) At December 31, 2020 Expiry date 1.00 to 1.50 1.51 to 2.00 2.01 to 2.50 2.51 to 3.00 Total 2021 — 10,000 — — 10,000 2024 — 506,351 — — 506,351 2025 — 49,687 — — 49,687 2026 — 95,000 50,000 — 145,000 2027 292,261 1,609,022 — — 1,901,283 2028 — — 243,506 2,467,584 2,711,090 2029 187,189 68,487 — — 255,676 2030 1,189,373 — — — 1,189,373 Total 1,668,823 2,338,547 293,506 2,467,584 6,768,460 Range of exercise prices (CHF) At December 31, 2019 Expiry date 1.00 to 1.50 1.51 to 2.00 2.01 to 2.50 2.51 to 3.00 Total 2020 — 49,687 — — 49,687 2021 — 105,000 50,000 — 155,000 2024 — 506,351 — — 506,351 2027 292,261 1,609,022 — — 1,901,283 2028 — — 243,506 2,467,584 2,711,090 2029 187,189 30,000 — — 217,189 Total 479,450 2,300,060 293,506 2,467,584 5,540,600 Range of exercise prices (CHF) At December 31, 2018 Expiry date 1.00 to 1.50 1.51 to 2.00 2.01 to 2.50 2.51 to 3.00 Total 2019 — 555,126 — — 555,126 2020 — 49,687 — — 49,687 2021 — 105,000 50,000 — 155,000 2027 292,261 1,609,022 — — 1,901,283 2028 — — — 2,467,584 2,467,584 Total 292,261 2,318,835 50,000 2,467,584 5,128,680 The weighted average fair value of share options granted during 2020 determined using a Black‑Scholes model was CHF 0.45 (2019: CHF 0.68). The significant inputs to the model were: 2020 2019 2018 Weighted average share price per share at the grant date CHF 1.16 CHF 1.93 CHF 2.94 Weighted average strike price per share CHF 1.16 CHF 1.92 CHF 3.00 Weighted average volatility 40.24 % 36.45 % 36.86 % Dividend yield — — — Weighted average annual risk-free rate / annual risk‑free rate 0.13 % 0.13 % 0.13 % Share purchase plan The Group established a share purchase plan under which services are settled for shares. Under the plan directors, executives, employees and consultants may receive fully paid ordinary shares from the Group’s treasury share reserve for services rendered. During the year ended December 31, 2020, 207,190 shares (respectively 2019: 196,610 and 2018: 87,176) were transferred to settle CHF 285,745 (respectively 2019: CHF 289,214 and 2018: CHF 208,085) of consulting fees. |
Revenue from contract with cust
Revenue from contract with customer | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from contract with customer | |
Revenue from contract with customer | 15. Revenue from contract with customer License & research agreement with Indivior PLC On January 2, 2018, the Group entered into an agreement with Indivior for the discovery, development and commercialization of novel GABA B PAM compounds for the treatment of addiction and other CNS diseases. This agreement included the selected clinical candidate, ADX71441. In addition, Indivior agreed to fund a research program at the Group to discover novel GABA B PAM compounds. The contract contains two distinct material promises and performance obligations: (1) the selected compound ADX71441 which falls within the definition of a licensed compound, whose rights of use and benefits thereon was transferred in January 2018; and, (2) the research services to be conducted by the Group and funded by Indivior to discover novel GABA B PAM compounds for clinical development that may be discovered over the research term of the agreement and selected by Indivior. Indivior has sole responsibility, including funding liability, for development of selected compounds under the agreement through preclinical and clinical trials, as well as registration procedures and commercialization, if any, worldwide. Indivior has the right to design development programs for selected compounds under the agreement. Through the Group’s participation in a joint development committee, the Group reviews, in an advisory capacity, any development programs designed by Indivior. However, Indivior has authority over all aspects of the development of such selected compounds. Under terms of the agreement, the Group granted Indivior an exclusive license to use relevant patents and know‑how in relation to the development and commercialization of product candidates selected by Indivior. Subject to agreed conditions, the Group and Indivior jointly own all intellectual property rights that are jointly developed and the Group or Indivior individually own all intellectual property rights that the Group or Indivior develop individually. The Group has retained the right to select compounds from the research program for further development in areas outside the interest of Indivior including Charcot‑Marie‑Tooth type 1A neuropathy, or CMT1A. Under certain conditions, but subject to certain consequences, Indivior may terminate the agreement. In January 2018, the Group received, under the terms of the agreement, a non‑refundable upfront fee of USD 5.0 million for the right to use the clinical candidate, ADX71441, including all materials and know‑how related to this clinical candidate. In addition, the Group is eligible for payments on successful achievement of pre-specified clinical, regulatory and commercial milestones totaling USD 330 million and royalties on net sales of mid-single digits to low double-digits. On February 14, 2019, Indivior terminated the development of their selected compound, ADX71441. Separately, Indivior funds research at the Group, based on a research plan to be mutually agreed between the parties, to discover novel GABA B PAM compounds. These future novel GABA B PAM compounds, if selected by Indivior, become licensed compounds. The Group agreed with Indivior to an initial research term of two years, that can be extended by twelve‑month increments and a minimum annual funding of USD 2 million for the Group’s R&D costs incurred. R&D costs are calculated based on the costs incurred in accordance with the contract. In 2020, the Group implemented improved systems to capture internal staff costs by project and consequently revised certain cost estimates. Following Indivior’s selection of one newly identified compound, the Group has the right to also select one additional newly identified compound. The Group is responsible for the funding of all development and commercialization costs of its selected compounds and Indivior has no rights to the Group’s selected compounds. The initial two‑year research term was expected to run from May 2018 to April 2020. In 2019, Indivior agreed an additional research funding of USD 1.6 million, for the research period. On October 30, 2020, the research term was extended until June 30, 2021 and Indivior agreed an additional research funding of USD 2.8 million. For the research activities, the Group recognized CHF 3.6 million for the year ended December 31, 2020 (respectively 2019: CHF 2.8 million and 2018: CHF 1.2 million) and recorded CHF 0.7 million as contract liability (2019: CHF 0.9 million). Janssen Pharmaceuticals Inc. (formerly Ortho‑McNeil‑Janssen Pharmaceuticals Inc). On December 31, 2004, the Group entered into a research collaboration and license agreement with Janssen Pharmaceuticals Inc. (JPI). In accordance with this agreement, JPI has acquired an exclusive worldwide license to develop mGlu2 PAM compounds for the treatment of human health. The Group is eligible to receive up to EUR 109 million in success-based development and regulatory milestone, and low double-digit royalties on net sales. The Group considers these various milestones to be variable consideration as they are contingent upon achieving uncertain, future development stages and net sales. For this reason, the Group considers the achievement of the various milestones as binary events that will be recognized as revenue upon occurrence. No amounts have been recognized under this agreement in 2020, 2019 and 2018. |
Other income
Other income | 12 Months Ended |
Dec. 31, 2020 | |
Other income | |
Other income | 16. Other income Under a grant agreement with Eurostars/Innosuisse and Michael J.Fox Foundation, the Group is required to complete specific research activities within a defined period of time. The Group’s funding is fixed and received based on the satisfactory completion of the agreed research activities and incurring the related costs. Eurostars/Innosuisse In October 2019, the Group received CHF 380,184 from Eurostars/Innosuisse. For the year ended December 31, 2020, the Group has recognized CHF 244,298 as other income (CHF 49,405 for the year ended December 31, 2019). As at December 31, 2020, the Group recognized CHF 86,481 as short term deferred income in accordance with the grant conditions. As at December 31, 2019 the Group recognized CHF 165,389 and CHF 165,390 as short and long-term deferred income, respectively. Michael J.Fox Foundation for Parkinson’s Research (MJFF) Until 2018, the Group has received USD 1.8 Million from MJFF for the funding of clinical testing of Dipraglurant for the treatment of Parkinson’s disease levodopa-induced dyskinesia (PD-LID) and TrKB PAM discovery activities. For the year ended December 31, 2018 the Group recognized CHF 609,212 in other income from Michael J.Fox Foundation. In 2020, the Group has additionally recognized revenue from IT consultancy agreements as other income for CHF 22,026 (CHF 21,430 for the period ended December 31, 2019). |
Operating costs
Operating costs | 12 Months Ended |
Dec. 31, 2020 | |
Operating costs | |
Operating costs | 17. Operating costs 2020 2019 2018 Staff costs (note 18) 4,397,004 4,288,815 2,224,206 Depreciation (notes 8/9) 378,754 333,844 2,938 External research and development costs 6,981,854 9,350,667 2,368,457 Laboratory consumables 295,005 230,097 144,169 Patent maintenance and registration costs 328,177 268,143 261,954 Professional fees 1,399,123 1,951,661 2,313,722 Short term leases 36,651 26,150 179,102 Insurance D&O 1,505,897 44,142 19,358 Other operating costs 799,952 944,303 613,392 Total operating costs 16,122,417 17,437,822 8,127,298 The evolution of the total operating costs is mainly driven by external research and development expenses, internal staff costs, other operating costs and professional fees. During the year ended December 31, 2020, external research and development costs decreased by CHF 2.4 million compared to the year ended December 31, 2019 primarily due to delays in starting certain clinical development activities due to the global coronavirus pandemic. During the same period, professional fees decreased by CHF 0.6 million primarily due to lower audit and legal fees which had been abnormally high in 2019 due to the preparation of the Company’s Nasdaq listing. Insurance costs increased by CHF 1.5 million due to higher directors and officer’s liability insurance premiums following the Company’s Nasdaq listing on January 29, 2020. |
Staff costs
Staff costs | 12 Months Ended |
Dec. 31, 2020 | |
Staff costs | |
Staff costs | 18. Staff costs 2020 2019 2018 Wages and salaries 2,959,856 2,438,448 1,273,382 Social charges and insurances 315,164 243,232 112,524 Value of share‑based services (note 14) 901,425 1,310,888 719,374 Retirement benefit expenses (note 20) 220,559 296,247 118,926 Total staff costs 4,397,004 4,288,815 2,224,206 The wages and salaries increased by CHF 0.5 million for the year ended December 31, 2020 compared to the same period in 2019, primarily due to an increase in the average number of full-time equivalent employees from 16.7 in 2019 to 22.2 in 2020. |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Taxes | |
Taxes | 19. Taxes December 31, 2020 December 31, 2019 December 31, 2018 Loss before tax 12,858,599 14,780,604 1,644,798 Tax calculated at a tax rate of 13.99% (2019 and 2018 : 23.40%) 1,798,918 3,458,661 384,883 Effect of different tax rates in USA and France 11,046 926 (617) Deductible expenses charged against equity / deferred costs for issuance of shares 78,164 39,876 693,439 Sale of treasury shares by a subsidiary, recognized as financial income in standalone financial statements (71,285) (16,161) (29,760) Expenses not deductible for tax purposes (160,729) (418,356) (542,632) Temporary differences (2,515) (140) — Total tax losses not recognized as deferred tax asset (1,653,599) (3,064,806) (505,313) Income tax expense — — — The Federal act on Tax Reform and Old Age and Survivors’ Insurance is effective in Switzerland from January 1, 2020. As a result, the income tax rate for companies in Geneva decreased from 23.40% to 13.99%. The Group has revised certain 2019 and 2018 comparative amounts in the above tax reconciliation table, which were netted against total tax losses not recognized as a deferred tax asset and therefore did not have any effect on the income tax expense and the consolidated balance sheet. The Group has decided not to recognize any deferred income tax assets at December 31, 2020, 2019 or 2018. The key factors which have influenced management in arriving at this evaluation are the fact that the Group has not yet a history of making profits and product development remains at an early stage. The amount of deferred income tax assets that arise from sources other than tax losses carried forward and the amount of deferred income tax liabilities are insignificant compared to the unrecognized tax losses carried forward. The tax losses carried forward by the Group and their respective expiry dates are as follows: December 31, 2020 December 31, 2019 December 31, 2018 2019 — — 27,481,171 2020 — 15,982,220 15,982,220 2021 1,224,210 1,224,210 1,224,210 2022 3,540,541 3,540,541 3,540,541 2023 141,425,567 141,425,567 3,309,636 2024 290,949 290,949 290,949 2025 3,586,490 3,586,490 3,586,490 2026 23,467,858 23,467,858 — 2027 9,834,675 — — Total unrecorded tax losses carry forwards 183,370,289 189,517,835 55,415,217 As of December 31, 2020, the unrecorded tax losses carried forward increased to CHF 183,370,289 (2019: CHF 189,517,835). On July 18, 2019, the swiss tax administration accepted to renew CHF 138,115,931 that expires on December 31, 2023. |
Retirement benefits obligations
Retirement benefits obligations | 12 Months Ended |
Dec. 31, 2020 | |
Retirement benefits obligations | |
Retirement benefits obligations | 20. Retirement benefit obligations Apart from the social security plans fixed by the law, the Group sponsors an independent pension plan. The Group has contracted with Swiss Life for the provision of occupational benefits. All benefits in accordance with the regulations are reinsured in their entirety with Swiss Life within the framework of the corresponding contract. This pension solution fully reinsures the risks of disability, death and longevity with Swiss Life. Swiss Life invests the vested pension capital and provides a 100% capital and interest guarantee. The pension plan is entitled to an annual bonus from Swiss Life comprising the effective savings, risk and cost results. Although, as is the case with many Swiss pension plans, the amount of ultimate pension benefit is not defined, certain legal obligations of the plan create constructive obligations on the employer to pay further contributions to fund an eventual deficit; this results in the plan nevertheless being accounted for as a defined benefit plan. All employees are covered by this plan, which is a defined benefit plan. Retirement benefits are based on contributions, computed as a percentage of salary, adjusted for the age of the employee and shared approximately 46% / 54% by employee and employer. In addition to retirement benefits, the plans provide death and long‑term disability benefits to its employees. Liabilities and assets are revised every year by an independent actuary. Assets are held in the insurance company. In accordance with IAS 19 (revised), plan assets have been estimated at fair market values and liabilities have been calculated according to the “projected unit credit” method. The Group recorded a pension benefit charge in 2020 of CHF 220,559 (respectively CHF 296,247 in 2019 and CHF 118,926 in 2018) as part of staff costs. Employment benefit obligations The amounts recognized in the balance sheet are determined as follows: 2020 2019 Defined benefit obligation (9,406,967) (8,583,214) Fair value of plan assets 7,714,430 7,101,476 Funded status (1,692,537) (1,481,738) The amounts recognized in the statement of comprehensive loss are as follows: 2020 2019 2018 Current service cost (315,727) (286,515) (115,146) Past service cost 102,764 — — Interest cost (21,799) (81,829) (37,903) Interest income 14,203 72,097 34,123 Company pension amount (note 18) (220,559) (296,247) (118,926) The conversion rates have changed as at January 1, 2020, which has led to a positive past service cost during the year 2020. The movements in the defined benefit obligations during the year are as follows: 2020 2019 Defined benefit obligation at beginning of year (8,583,214) (7,060,278) Current service cost (315,727) (286,515) Past service cost 102,764 — Interest cost (21,799) (81,829) Employee contributions (205,085) (166,150) Actuarial loss arising from changes in financial assumptions — (875,960) Actuarial gain arising from changes in demographic assumptions — 91,212 Actuarial loss on experience adjustment (208,572) (263,491) Benefits paid/ (deposited) (175,334) 59,797 Defined benefit obligations at end of year (9,406,967) (8,583,214) The movements in the fair value of plan assets during the year are as follows: 2020 2019 Fair value of plan assets at beginning of year 7,101,476 6,420,927 Interest income 14,203 72,097 Employee contributions 205,085 166,150 Employer contributions 243,289 199,715 Plan assets gain/(loss) (24,957) 302,384 Benefits (paid)/ deposited 175,334 (59,797) Fair value of plan assets at end of year 7,714,430 7,101,476 As of the date of the preparation of these consolidated financial statements, the 2020 annual report of the pension fund has not yet been issued, and therefore the detailed structures and assets held at December 31, 2020, are not currently available for presentation. However, the detailed assets held at December 31, 2019, which were reported to the Group on May 19, 2020 by its plan administrator, are as follows: December 31, 2019 Cash 1.52 % Bonds 56.35 % Equity instruments 12.52 % Real estate 20.29 % Mortgages 8.18 % Others 1.14 % Total 100.00 % The principal actuarial assumptions used were as follows: December 31, 2020 December 31, 2019 Discount rate 0.20 % 0.20 % Mortality tables BVG2015 GT BVG2015 GT Salary growth rate 1.00 % 1.00 % Pension growth rate 0.00 % 0.00 % The following sensitivity analysis shows the impact of increasing or decreasing certain assumptions on the defined benefit obligation of the Swiss pension plan: · 0.25% increase or decrease in the discount rate would lead to a decrease of 4.36% (2019: 4.47%) or an increase of 5.06% (2019: 5.22%) in the defined benefit obligation. · 0.25% increase or decrease in the interest rate on retirement savings capital would lead to an increase of 0.63% (2019 : 0.59%) or a decrease of 0.59% (2019 : 0.53%) in the defined benefit obligation. · 0.25% increase or decrease in salaries would lead to an increase of 0.03% (2019 : 0.03%) or a decrease of 0.02% (2019: 0.02%) in the defined benefit obligation; and · +/‑1 year in the life expectancy would lead to an increase of 1.85% (2019: 1.86%) or a decrease of 1.92% (2019: 1.92%) in the defined benefit obligation. The discount rate and life expectancy were identified as significant actuarial assumptions for the Swiss pension plan. The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligations to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as that used in calculating the pension liability recorded on consolidated balance sheets. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period. The estimated employer contributions to pension plans for the financial year 2021 amount to CHF 245,000. The following table shows the funding of the defined benefit pensions and actuarial adjustments on plan liabilities: 2020 2019 Present value of defined benefit obligation (9,406,967) (8,583,214) Fair value of plan assets 7,714,430 7,101,476 Deficit in the plan (1,692,537) (1,481,738) Experience adjustment (208,572) (1,048,239) Actuarial gain/(loss) on plan assets (24,957) 302,384 The following table shows the estimated benefit payments for the next ten years where the number of employees remains constant: 2021 351,000 2022 342,000 2023 336,000 2024 716,000 2025 313,000 2026‑2030 1,572,000 |
Finance costs
Finance costs | 12 Months Ended |
Dec. 31, 2020 | |
Finance costs | |
Finance costs | 21. Finance costs 2020 2019 2018 Interest income 35,305 36,874 — Interest expense on leases (19,042) (22,603) — Interest cost (50,460) (105,915) (134,307) Foreign exchange losses (581,128) (84,803) (85,866) Finance costs (615,325) (176,447) (220,173) The evolution of the finance costs is mainly driven by foreign exchange losses that increased by CHF 0.5M for the year ended December 31, 2020 compared to the same period in 2019 due to the strengthening of the Swiss franc against the U.S dollar. |
Loss per share
Loss per share | 12 Months Ended |
Dec. 31, 2020 | |
Loss per share | |
Loss per share | 22. Loss per share Basic and diluted loss per share is calculated by dividing the loss attributable to equity holders of the Company by the weighted average number of shares in issue during the year excluding shares purchased by the Group and held as treasury shares. 2020 2019 2018 Loss attributable to equity holders of the Company (12,858,599) (14,780,604) (1,644,798) Weighted average number of shares in issue 26,681,774 26,428,269 23,293,237 Basic and diluted loss per share (0.48) (0.56) (0.07) The Company has three categories of dilutive potential shares as at December 31, 2020, 2019 and 2018: equity sharing certificates (“ESCs”), share options and warrants. As of December 31, 2020, 2019 and 2018, equity sharing certificates, share options and warrants have been ignored in the calculation of the loss per share, as they would be antidilutive. The total number of dilutive instruments as of December 31, 2020 is 13,034,108 (respectively 2019: 11,906,248 and 2018: 11,561,178) which primarily consists of 198,750 ESCs, 6,768,460 ESOP and 5,866,898 warrants granted in connection with the capital increase of March 18, 2018 (respectively 2019: 198,750 ESCs, 5,540,600 ESOP and 5,866,898 warrants granted in connection with the capital increase of March 18, 2018 and 2018: 265,600 ESCs, 5,128,680 ESOP and 5,866,898 warrants granted in connection with the capital increase of March 18, 2018). These options could potentially dilute basic earnings per share in the future. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and contingencies | |
Commitments and contingencies | 23. Commitments and contingencies Capital commitments As at December 31, 2020 and 2019, the Group has no contracted capital expenditure. Contingencies As part of the ordinary course of business, the Group is subject to contingent liabilities in respect of certain litigation. Currently, there is no outstanding litigation. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related party transactions | |
Related party transactions | 24. Related party transactions Related parties include members of the Board of Directors and the Executive Management of the Group. The following transactions were carried out with related parties: Key management compensation 2020 2019 2018 Salaries, other short‑term employee benefits and post-employment benefits 1,314,723 1,156,427 522,163 Consulting fees 317,425 364,535 577,078 Share‑based compensation 975,579 1,434,190 2,019,430 2,607,727 2,955,152 3,118,671 Salaries, other short-term employee benefits and post-employment benefits relate to members of the Board of Directors and Executive Management who are employed by the Group. Consulting fees primarily relate to Roger Mills, a member of the Executive Management who delivers his services to the Group under a consulting contract. The Group has a net payable to the Board of Directors and Executive Management of CHF 145,443 at December 31, 2020 (December 31, 2019: CHF 176,089). |
Events after the balance sheet
Events after the balance sheet date | 12 Months Ended |
Dec. 31, 2020 | |
Events after the balance sheet date | |
Events after the balance sheet date | 25. Events after the balance sheet date On January 8, 2021, Addex Therapeutics Ltd issued 6,900,000 registered shares, with a nominal value of CHF 1 each, at an issue price of CHF 1.46367. Out of the total new shares, 6,750,000 are in the form of American Depositary Shares, listed on the Nasdaq Stock Market. As a result, the Company’s share capital increased from CHF 32,848,635 to CHF 39,748,635. The gross proceeds amount to CHF 10.1 million (USD 11.5 million). |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of significant accounting policies | |
Basis of preparation | 2.1 The consolidated financial statements of Addex Therapeutics Ltd have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (“IASB”), and under the historical cost convention. The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in note 4 “Critical accounting estimates and judgements”. Due to rounding, numbers presented throughout these consolidated financial statements, may not add up precisely to the totals provided. All ratios and variances are calculated using the underlying amount rather than the presented rounded amount. Where necessary, comparative figures have been revised to conform with the current year 2020 presentation. |
New and amended standards adopted by the Group | New and amended standards adopted by the Group A number of new or amended standards and interpretations became applicable for financial periods beginning on or after January 1, 2020. The Group noted that these new or amended standards did not have a material impact on the Group’s financial position or disclosures made in the condensed consolidated financial statements. |
New standards and interpretations not yet adopted by the Group | New standards and interpretations not yet adopted by the Group The Group is currently assessing the potential impacts of the various new and revised standards and interpretations that will be mandatory from January 1, 2021 which the Group has not yet applied. Based on an analysis to date, the Group does not anticipate that these will have a material impact on the Group's overall results and financial position. The Group is also assessing other new and revised standards which are not mandatory until after 2021. |
Other standards adopted by the Group prior to January 1, 2020 | Other standards adopted by the Group prior to January 1, 2020 On January 1, 2019, the Group adopted IFRS 16 Leases, which replaced IAS 17 Leases and related Interpretations, applied by the Group until December 31, 2018. The Group leases various offices and equipment, which are recorded as right-of-use assets and the corresponding liabilities on the balance sheet at the date at which the leased assets are available for use by the Group. |
Consolidation | 2.3 Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de‑consolidated from the date that control ceases. The Company currently consolidates the financial operations of its three fully-owned subsidiaries, Addex Pharma SA, which is registered in Plan-Les-Ouates, Switzerland, Addex Pharmaceuticals Inc., which is registered in Delaware, United States with its principal business location in San Francisco, United States and Addex Pharmaceuticals France SAS which is registered in Archamps, France. Inter‑company transactions, balances and unrealized gains on transactions between Group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. The reporting date of all Group companies is December 31. |
Segment reporting | 2.4 The Group operates in one segment, which is the discovery, development and commercialization of small‑molecule pharmaceutical products. A single management team that reports to the chief executive officer comprehensively manages the entire business. The chief operating decision‑maker is the Chief Executive Officer who reviews the statement of operations of the Group on a consolidated basis, makes decisions and manages the operations of the Group as a single operating segment. The Group’s activities are not affected by any significant seasonal effect. Revenue is attributable to the Company’s country of domicile, Switzerland. |
Foreign currency transactions | 2.5 Functional and presentation currency Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The consolidated financial statements are presented in Swiss francs, which is the Group’s presentation currency. Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are re‑measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year‑end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of comprehensive loss. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the statement of comprehensive loss within ‘finance cost’. Group companies The results and financial position of the Group’s subsidiary that has a functional currency different from the presentation currency are translated into the presentation currency as follows: · assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet; · income and expenses for each statement of comprehensive loss are translated at the average exchange rate; and · all resulting exchange differences are recognized in other comprehensive loss. |
Property, plant and equipment | 2.6 Property, plant and equipment are stated at historical cost less accumulated depreciation, and impairment (if any). Historical cost includes expenditure that is directly attributable to the acquisition of the item. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of comprehensive loss d uring the financial period in which they are incurred. Depreciation is calculated using the straight‑line method to allocate their cost to their residual values over their estimated useful lives as follows: Computer equipment 3 years Laboratory equipment 4 years Furniture and fixtures 5 years Chemical library 5 years The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount (see note 2.7). Gains and losses on disposals are determined by comparing proceeds with the carrying amount and are included in the statement of comprehensive loss. |
Impairment of non financial assets | 2.7 Assets that are subject to depreciation or amortization are reviewed for impairment annually, and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). Prior impairment of non‑financial assets other than goodwill is reviewed for possible reversal at each reporting date. |
Financial assets | 2.8 The Group has one category of financial assets, namely “receivables”. Receivables are non‑derivative financial assets with fixed or determinable payments that are not quoted in an active market. These assets are held for collection of contractual cash flows which represent solely the payment of principal and interest. They arise when the Group provides money, goods or services directly to a debtor with no intention of trading the receivable. They are included in current assets, except for maturities greater than 12 months after the balance sheet date, which are classified as non‑current assets. Receivables are included in other current assets in the balance sheet (see note 7). Receivables are initially measured at fair value and subsequently measured at amortized cost. The amortized cost of a financial asset is the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount, adjusted for any loss allowance. The gross carrying amount of a financial asset is the amortized cost of a financial asset before adjusting for any loss allowance. Receivables are derecognized when settled. The Company classifies a contract asset as a receivable when the Company’s right to consideration is unconditional. If the Company transfers control of goods or services to a customer before the customer pays consideration, the Company records either a contract asset or a receivable depending on the nature of the Company’s right to consideration for its performance. Contract assets and contract liabilities arising from the same contract are netted and presented as either a single net contract asset or net contract liability. Impairment of financial assets The Group recognizes a loss allowance for expected credit losses on trade receivables, contract assets and security rental deposits that are measured at amortized cost. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument. The Group always recognizes lifetime expected credit losses(“ECL”) for trade receivables and contract assets where applicable. The ECL on these financial assets are estimated using a provision matrix based on the Group’s historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate. Lifetime ECL represents the ECL that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date. |
Cash and cash equivalents | 2.9 Cash and cash equivalents include cash on hand, deposits held at call with banks and other short‑term highly liquid investments with original maturities of three months or less. They are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Any bank overdrafts are not netted against cash and cash equivalents but are shown as part of current liabilities on the consolidated balance sheet. |
Share capital | 2.10 Shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown as a deduction, net of tax, from the proceeds. Where any Group company purchases the Company’s equity share capital (treasury shares), the consideration paid, including any directly attributable incremental cost (net of income taxes) is recorded as a deduction from equity attributable to the Company’s equity holders as a treasury share reserve until the shares are cancelled, reissued or disposed of. When such shares are subsequently sold or reissued, any consideration received, net of any directly attributable incremental transaction costs and the related income tax effect, the nominal amount is reversed from the treasury share reserve, with any remaining difference to the total transaction value being recognized in share premium. The Company has entered into a liquidity contract where an independent broker buys and sells the Company’s shares held in the broker’s custody. Such shares are presented in the treasury share reserve. The Company also uses treasury shares to partially settle services rendered by third and related parties. When shares are issued for this purpose, the nominal share value is recognized as a treasury share reserve and the value above par is presented as a share premium. |
Equity instruments | 2.11 Equity instruments issued by the Group are recorded at the fair value of the proceeds received, net of direct issuance costs. |
Trade payables | 2.12 Trade payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method. All payables have a contract maturity within 1 year. |
Grants | 2.13 Grants are not recognized until there is reasonable assurance that the Group will comply with the terms and conditions of the grant and that the grants will be received. Grants are recognized as other income in the statement of comprehensive loss on a systematic basis over the periods in which the Group recognizes as expenses the related costs for which the grant is intended to compensate. Specifically, grants whose primary conditions is that the Group should undertake specific research activities within a defined period of time, are recognized as deferred income in the consolidated statement of financial position and transferred to the statement of comprehensive loss on a systematic and rationale basis over the defined timeframe. |
Deferred income tax | 2.14 Deferred income tax is recorded in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, if the deferred income tax arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss, it is not accounted for. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realized, or the deferred income tax liability is settled. Deferred income tax assets are recognized to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. Deferred income tax is recorded on temporary differences arising on investments in subsidiaries, except where the Group deems it probable that the temporary difference will not reverse in the foreseeable future. Potential deferred income tax assets from tax loss carry forwards exceed deferred tax liabilities. Deferred income tax assets from tax loss carry forwards are initially recognized to the extent that there are suitable deferred income tax liabilities, then to the extent that the realization of the related tax benefit through future taxable profits is probable. |
Pension obligations | 2.15 The Group operates one pension scheme. The scheme is generally funded through payments to insurance companies or trustee‑administered funds, determined by periodic actuarial calculations. The Group has defined benefit plans. A defined benefit plan is a pension plan that defines an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized immediately in other comprehensive loss and past‑service costs are recognized immediately in the statement of comprehensive loss. The liability recognized in the balance sheet in respect of defined benefit pension plans is the defined benefit obligation at the balance sheet date minus the fair value of the plan assets. The defined benefit obligation is calculated at least annually by an independent actuary using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high‑quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability. |
Share based compensation | 2.16 The Group operates an equity sharing certificates’ equity incentive plan, a share option plan, and a share purchase plan. The Group also from time-to-time grants warrants to brokers and investors. The fair value of the services received in exchange for the grant or transfer of equity sharing certificates, options, shares or warrants is recognized in the consolidated financial statements over the period for which the services are received. The total amount to be recognized over the vesting period is determined by reference to the fair value of the equity incentive unit granted or transferred. The fair value of instruments granted includes any market performance conditions and excludes the impact of any service and non‑market performance vesting conditions. Service and non‑market performance conditions are included in assumptions about the number of equity incentive units that are expected to vest. At each balance sheet date, the Group revises its estimates for the number of equity incentive units that are expected to vest. It recognizes the impact of the revision to original estimates, if any, in the statement of comprehensive loss, with a corresponding adjustment to equity. The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the equity incentive units are exercised. |
Revenue recognition | 2.17 The Group recognizes revenue from the license of intellectual property and providing research and development services: License of intellectual property If the license to the Group’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Group recognizes revenues when the license conveys a right of use, or there is a right of access to the underlying intellectual property. For licenses that are sold in conjunction with a related service, the Group uses judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time. If the performance obligation is settled over time, the Group determines the appropriate method of measuring progress for purposes of recognizing license revenue. The Group evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. Research and development services The Group has an arrangement with its partner that includes deploying its employees for research and development activities. The Group assesses if these research and development activities are considered distinct in the context of the respective contract and, if so, they are accounted for as a separate performance obligation. This revenue is calculated based on the costs incurred (input method) in accordance with the respective contract, and recorded within “Revenue from contract with customer ” over time as the activities are performed. Contract balances The Group receives payments and determines credit terms from its customers for its various performance obligations based on billing schedules established in each contract. The actual timing of the income recognition, billings and cash collections may result in other current receivables, accrued revenue (contract assets), and deferred revenue (contract liabilities) being recorded on the balance sheets. Amounts are recorded as other current receivables when the Group’s right to consideration is unconditional. The Group does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised goods or services to the customer will be one year or less. Under IFRS 15, the Group recognizes as revenue its non-refundable license fees, milestone, research activities and royalties when its customer obtains control of promised services, in an amount that reflects the consideration which the Group expects to receive in exchange for those rendered services. To assess revenue recognition for arrangements that the Group determines are within the scope of IFRS 15, the Group performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Group satisfies a performance obligation. The Group only applies the five-step model to contracts when it is probable that the Group will collect the consideration it is entitled to in exchange for services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of IFRS 15, the Group assesses the services promised within each contract and determine those that are performance obligations and assess whether each promised service is distinct. The Group uses the most likely method to estimate any variable consideration and include such consideration in the amount of the transaction price based on an estimated stand-alone selling price. Revenue is recognized for the respective performance obligation when (or as) the performance obligation is satisfied. |
Finance income and expense | 2.18 Interest received or paid on cash and cash equivalents are classified in the statement of cash flows under financing activities. |
Leases | 2.19 The Group assesses whether a contract is or contains a lease, at inception of the contract. The Group recognizes a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets (less than USD 5 thousand). For these leases, the Group recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed. The lease liability is initially measured at the present value of the lease payments as from the commencement date of the lease until the expected termination date. In determining the lease term, management consider all facts and circumstances that create an economic incentive to exercise an extension option, or not to exercise a termination option. Extension option are only considered if the lease is reasonably certain to be extended. The assessment of reasonable certainty is only revised if a significant event or a significant change in circumstances, that is within the control of the lessees, occurs. The lease payments are discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. The lease liability is presented as a separate line in the consolidated statement of financial position. The interest expense is presented in the line finance expenses in the consolidated statement of comprehensive loss. The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day, less any lease incentives received and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses. They are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease. The right-of-use assets are presented as a separate line in the consolidated statement of financial position. When the Group renegotiates the contractual terms of a lease with the lessor, the accounting depends on the nature of the modification: - - - All lease payments on leases are presented as part of the cash flow from financing activities, except for the short-term and low value leases cash flows, which are booked under operating activities. |
Research and development | 2.20 Research and development costs are expensed as incurred. Costs incurred on development projects are recognized as intangible assets when the following criteria are fulfilled: · it is technically feasible to complete the intangible asset so that it will be available for use or sale; · management intends to complete the intangible asset and use or sell it; · there is an ability to use or sell the intangible asset; · it can be demonstrated how the intangible asset will generate probable future economic benefits; · adequate technical, financial and other resources to complete the development and to use or sell the intangible asset are available; and · the expenditure attributable to the intangible asset during its development can be reliably measured. In the opinion of management, due to uncertainties inherent in the development of the Group’s products, the criteria for development costs to be recognized as an asset, as prescribed by IAS 38, “Intangible Assets”, are not met. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of significant accounting policies | |
Schedule of depreciation rates | Computer equipment 3 years Laboratory equipment 4 years Furniture and fixtures 5 years Chemical library 5 years |
Financial risk management (Tabl
Financial risk management (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Lease liabilities | |
Schedule of net debt | Other Cash and cash financial Leases equivalents assets Total Net debt as at January 1, 2019 (544,510) 41,670,158 7,983 41,133,631 Cash flows 316,348 (9,989,053) 5,955 (9,666,750) Acquisition – Leases (322,528) — — (322,528) Foreign exchange differences 445 (144,302) — (143,857) Net debt as at December 31, 2019 (550,245) 31,536,803 13,938 31,000,496 Cash flows 367,412 (12,193,082) 50,992 (11,774,678) Acquisition – Leases (27,612) — — (27,612) Effect of modification to lease terms (434,150) — — (434,150) Disposals 77,199 — — 77,199 Foreign exchange differences — (648,681) — (648,681) Net debt as at December 31, 2020 (567,396) 18,695,040 64,930 18,192,574 |
Schedule of lease liabilities | Total Carrying Less than 1 to 5 More than cash out amount At December 31, 2020 1 Year Years 5 Years flows liabilities Lease Liabilities 331,911 270,133 — 602,044 567,396 Total Carrying Less than 1 to 5 More than cash out amount At December 31, 2019 1 Year Years 5 Years flows liabilities Lease Liabilities 392,954 182,664 — 575,618 550,245 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment information | |
Schedule of revenue from contract with customer and other income by nature | 2020 2019 2018 Fees from sale of license rights — — 4,876,000 Collaborative research funding 3,612,819 2,762,830 1,167,855 Grants earned 244,298 49,405 609,212 Other service income 22,026 21,430 49,606 Total 3,879,143 2,833,665 6,702,673 |
Schedule of revenue from contract with customer and other income by major counterparties | 2020 2019 2018 Indivior PLC 3,612,819 2,762,830 6,043,855 The Michael J. Fox Foundation — — 609,212 Eurostars/Innosuisse 244,298 49,405 — Other counterparties 22,026 21,430 49,606 Total 3,879,143 2,833,665 6,702,673 |
Schedule of geographical areas | The geographical allocation of long‑lived assets is detailed as follows: December 31, December 31, 2020 2019 Switzerland 665,012 498,066 United States of America 26,847 141,420 France 389 391 Total 692,248 639,877 The geographical analysis of operating costs is as follows: 2020 2019 2018 Switzerland 16,050,488 17,409,808 8,119,953 United States of America 64,922 21,214 — France 7,007 6,800 7,345 Total operating costs (note 17) 16,122,417 17,437,822 8,127,298 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash and cash equivalents | |
Schedule of cash and cash equivalents | December 31, December 31, 2020 2019 Cash at bank and on hand 18,695,040 26,889,923 Short term deposits in USD — 4,646,880 Total cash and cash equivalents 18,695,040 31,536,803 |
Schedule of cash and cash equivalents by currency | December 31, December 31, 2020 2019 CHF % % USD % % EUR % % GBP % % Total % % |
Schedule of cash and cash equivalents by credit rating | December 31, December 31, External credit rating of counterparty 2020 2019 P‑1 / A‑1 18,694,883 31,536,646 Cash on hand 157 157 Total cash and cash equivalents 18,695,040 31,536,803 |
Other current assets (Tables)
Other current assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other current assets | |
Schedule of other current assets | December 31, December 31, 2020 2019 Other financial assets 64,930 13,968 Receivables 68,373 118,028 Prepayments 498,382 720,063 Deferred costs 162,839 — Total other current assets 794,524 852,059 |
Right-of-use assets (Tables)
Right-of-use assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Right-of-use assets | |
Schedule of right-of-use assets | Properties Equipment Total Year ended December 31, 2019 Opening net book amount — — — Adoption of IFRS16 as at January 1, 2019 483,350 61,160 544,510 Additions 308,987 13,541 322,528 Depreciation charge (296,656) (27,487) (324,143) Exchange differences 445 — 445 Closing net book amount 496,126 47,214 543,340 Properties Equipment Total At December 31, 2019 Cost 792,337 74,701 867,038 Accumulated depreciation (296,211) (27,487) (323,698) Net book value 496,126 47,214 543,340 Properties Equipment Total Year ended December 31, 2020 Opening net book amount 496,126 47,214 543,340 Additions 27,612 — 27,612 Depreciation charge (333,714) (25,760) (359,474) Effect of modification to lease terms 434,150 — 434,150 Disposals (72,504) — (72,504) Exchange differences (7,780) — (7,780) Closing net book amount 543,890 21,454 565,344 At December 31, 2020 Cost 1,111,338 71,168 1,182,506 Accumulated depreciation (567,448) (49,714) (617,162) Net book value 543,890 21,454 565,344 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment | |
Schedule of changes in property, plant and equipment | Furniture & Chemical Equipment fixtures Library Total Year ended December 31, 2019 Opening net book amount 8,868 — — 8,868 Additions 28,459 — — 28,459 Depreciation charge (9,701) — — (9,701) Closing net book amount 27,626 — — 27,626 At December 31, 2019 Cost 1,622,865 7,564 1,207,165 2,837,594 Accumulated depreciation (1,595,239) (7,564) (1,207,165) (2,809,968) Net book value 27,626 — — 27,626 Year ended December 31, 2020 Opening net book amount 27,626 — — 27,626 Additions 59,414 — — 59,414 Depreciation charge (19,280) — — (19,280) Closing net book amount 67,760 — — 67,760 At December 31, 2020 Cost 1,682,279 7,564 1,207,165 2,897,008 Accumulated depreciation (1,614,519) (7,564) (1,207,165) (2,829,248) Net book value 67,760 — — 67,760 |
Non-current financial assets (T
Non-current financial assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Non-current financial assets | |
Schedule of non-current financial assets | December 31, December 31, 2020 2019 Security rental deposits 59,144 68,911 Total non‑current financial assets 59,144 68,911 |
Payables and accruals (Tables)
Payables and accruals (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and accruals | |
Schedule of payables and accruals | December 31, December 31, 2020 2019 Trade payables 983,545 2,216,147 Social security and other taxes 171,876 107,415 Accrued expenses 1,336,506 1,872,849 Total payables and accruals 2,491,927 4,196,411 |
Deferred income (Tables)
Deferred income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred income | |
Schedule of deferred income | December 31, 2020 December 31, 2019 Within one year 86,481 165,389 Within two years — 165,390 Total deferred income 86,481 330,779 |
Share capital (Tables)
Share capital (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share capital. | |
Schedule of share capital | Number of shares Common Treasury shares shares Total Balance at January 1, 2019 28,564,031 (2,158,476) 26,405,555 Issue of shares — capital increase 4,284,604 (4,284,604) — Settlement of supplier invoices — 196,610 196,610 Net sale of treasury shares under liquidity agreement — 2,983 2,983 Balance at December 31, 2019 32,848,635 (6,243,487) 26,605,148 Settlement of supplier invoices — 207,190 207,190 Net purchase of treasury shares under liquidity agreement — (26,564) (26,564) Other net sale of treasury shares — 333,000 333,000 Balance at December 31, 2020 32,848,635 (5,729,861) 27,118,774 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based compensation | |
Schedule of effect of share-based compensation on profit or loss | 2020 2019 2018 Research and development 354,934 433,536 880,982 General and administration 821,479 1,252,429 1,417,951 Total share‑based compensation 1,176,413 1,685,965 2,298,933 2020 2019 2018 Equity sharing certificate plan 14,644 37,776 77,336 Share purchase plan 49,813 45,593 38,296 Share option plans 1,111,956 1,602,596 2,183,301 Total share‑based compensation 1,176,413 1,685,965 2,298,933 |
Schedule of movements in number of subscription rights outstanding | 2020 2019 2018 At January 1 198,750 265,600 275,933 Granted — — — Expired — (66,850) (10,333) Exercised — — — At December 31 198,750 198,750 265,600 |
Schedule of outstanding subscription rights | Subscription prices / floor prices (CHF) At December 31, 2020 Expiry date 1.00 / 2.30 2.00 / 2.30 Total 2024 90,750 — 90,750 2027 — 108,000 108,000 Total subscription rights 90,750 108,000 198,750 Subscription prices / floor prices (CHF) At December 31, 2019 Expiry date 1.00 / 2.30 2.00 / 2.30 Total 2024 90,750 — 90,750 2027 — 108,000 108,000 Total subscription rights 90,750 108,000 198,750 Subscription prices / floor prices (CHF) At December 31, 2018 Expiry date 1.00 / 2.30 2.00 / 2.30 Total 2019 151,600 — 151,600 2020 6,000 — 6,000 2027 — 108,000 108,000 Total subscription rights 157,600 108,000 265,600 |
Schedule of share options granted | Number Exercise price Expiry date January 1, 2020 38,487 1.64 December 31, 2029 April 1, 2020 1,158,011 1.14 March 31, 2030 July 1, 2020 31,362 1.45 June 30, 2030 Total 2020 1,227,860 Number Exercise price Expiry date January 1, 2019 243,506 2.25 December 31, 2028 July 1, 2019 187,189 1.50 June 30, 2029 October 1, 2019 30,000 1.80 September 30, 2029 Total 2019 460,695 |
Schedule of movements in number of options outstanding | 2020 2019 2018 At January 1 5,540,600 5,128,680 2,661,096 Granted 1,227,860 460,695 2,467,584 Exercised — (48,775) — At December 31 6,768,460 5,540,600 5,128,680 |
Schedule of outstanding share options | Range of exercise prices (CHF) At December 31, 2020 Expiry date 1.00 to 1.50 1.51 to 2.00 2.01 to 2.50 2.51 to 3.00 Total 2021 — 10,000 — — 10,000 2024 — 506,351 — — 506,351 2025 — 49,687 — — 49,687 2026 — 95,000 50,000 — 145,000 2027 292,261 1,609,022 — — 1,901,283 2028 — — 243,506 2,467,584 2,711,090 2029 187,189 68,487 — — 255,676 2030 1,189,373 — — — 1,189,373 Total 1,668,823 2,338,547 293,506 2,467,584 6,768,460 Range of exercise prices (CHF) At December 31, 2019 Expiry date 1.00 to 1.50 1.51 to 2.00 2.01 to 2.50 2.51 to 3.00 Total 2020 — 49,687 — — 49,687 2021 — 105,000 50,000 — 155,000 2024 — 506,351 — — 506,351 2027 292,261 1,609,022 — — 1,901,283 2028 — — 243,506 2,467,584 2,711,090 2029 187,189 30,000 — — 217,189 Total 479,450 2,300,060 293,506 2,467,584 5,540,600 Range of exercise prices (CHF) At December 31, 2018 Expiry date 1.00 to 1.50 1.51 to 2.00 2.01 to 2.50 2.51 to 3.00 Total 2019 — 555,126 — — 555,126 2020 — 49,687 — — 49,687 2021 — 105,000 50,000 — 155,000 2027 292,261 1,609,022 — — 1,901,283 2028 — — — 2,467,584 2,467,584 Total 292,261 2,318,835 50,000 2,467,584 5,128,680 |
Schedule of inputs to option pricing model | 2020 2019 2018 Weighted average share price per share at the grant date CHF 1.16 CHF 1.93 CHF 2.94 Weighted average strike price per share CHF 1.16 CHF 1.92 CHF 3.00 Weighted average volatility 40.24 % 36.45 % 36.86 % Dividend yield — — — Weighted average annual risk-free rate / annual risk‑free rate 0.13 % 0.13 % 0.13 % |
Operating costs (Tables)
Operating costs (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Operating costs | |
Schedule of operating costs | 2020 2019 2018 Staff costs (note 18) 4,397,004 4,288,815 2,224,206 Depreciation (notes 8/9) 378,754 333,844 2,938 External research and development costs 6,981,854 9,350,667 2,368,457 Laboratory consumables 295,005 230,097 144,169 Patent maintenance and registration costs 328,177 268,143 261,954 Professional fees 1,399,123 1,951,661 2,313,722 Short term leases 36,651 26,150 179,102 Insurance D&O 1,505,897 44,142 19,358 Other operating costs 799,952 944,303 613,392 Total operating costs 16,122,417 17,437,822 8,127,298 |
Staff costs (Tables)
Staff costs (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Staff costs | |
Schedule of staff costs | 2020 2019 2018 Wages and salaries 2,959,856 2,438,448 1,273,382 Social charges and insurances 315,164 243,232 112,524 Value of share‑based services (note 14) 901,425 1,310,888 719,374 Retirement benefit expenses (note 20) 220,559 296,247 118,926 Total staff costs 4,397,004 4,288,815 2,224,206 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Taxes | |
Schedule of reconciliation of income tax | December 31, 2020 December 31, 2019 December 31, 2018 Loss before tax 12,858,599 14,780,604 1,644,798 Tax calculated at a tax rate of 13.99% (2019 and 2018 : 23.40%) 1,798,918 3,458,661 384,883 Effect of different tax rates in USA and France 11,046 926 (617) Deductible expenses charged against equity / deferred costs for issuance of shares 78,164 39,876 693,439 Sale of treasury shares by a subsidiary, recognized as financial income in standalone financial statements (71,285) (16,161) (29,760) Expenses not deductible for tax purposes (160,729) (418,356) (542,632) Temporary differences (2,515) (140) — Total tax losses not recognized as deferred tax asset (1,653,599) (3,064,806) (505,313) Income tax expense — — — |
Schedule of tax losses carry forwards | December 31, 2020 December 31, 2019 December 31, 2018 2019 — — 27,481,171 2020 — 15,982,220 15,982,220 2021 1,224,210 1,224,210 1,224,210 2022 3,540,541 3,540,541 3,540,541 2023 141,425,567 141,425,567 3,309,636 2024 290,949 290,949 290,949 2025 3,586,490 3,586,490 3,586,490 2026 23,467,858 23,467,858 — 2027 9,834,675 — — Total unrecorded tax losses carry forwards 183,370,289 189,517,835 55,415,217 |
Retirement benefits obligatio_2
Retirement benefits obligations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement benefits obligations | |
Schedule of amounts recognized in balance sheet for employment benefit obligations | 2020 2019 Defined benefit obligation (9,406,967) (8,583,214) Fair value of plan assets 7,714,430 7,101,476 Funded status (1,692,537) (1,481,738) |
Schedule of amounts recognized in statement of loss for employment benefit obligations | 2020 2019 2018 Current service cost (315,727) (286,515) (115,146) Past service cost 102,764 — — Interest cost (21,799) (81,829) (37,903) Interest income 14,203 72,097 34,123 Company pension amount (note 18) (220,559) (296,247) (118,926) |
Schedule of movement in defined benefit obligations and plan assets | The movements in the defined benefit obligations during the year are as follows: 2020 2019 Defined benefit obligation at beginning of year (8,583,214) (7,060,278) Current service cost (315,727) (286,515) Past service cost 102,764 — Interest cost (21,799) (81,829) Employee contributions (205,085) (166,150) Actuarial loss arising from changes in financial assumptions — (875,960) Actuarial gain arising from changes in demographic assumptions — 91,212 Actuarial loss on experience adjustment (208,572) (263,491) Benefits paid/ (deposited) (175,334) 59,797 Defined benefit obligations at end of year (9,406,967) (8,583,214) The movements in the fair value of plan assets during the year are as follows: 2020 2019 Fair value of plan assets at beginning of year 7,101,476 6,420,927 Interest income 14,203 72,097 Employee contributions 205,085 166,150 Employer contributions 243,289 199,715 Plan assets gain/(loss) (24,957) 302,384 Benefits (paid)/ deposited 175,334 (59,797) Fair value of plan assets at end of year 7,714,430 7,101,476 |
Schedule of fair value of plan assets | December 31, 2019 Cash 1.52 % Bonds 56.35 % Equity instruments 12.52 % Real estate 20.29 % Mortgages 8.18 % Others 1.14 % Total 100.00 % |
Schedule of principal actuarial assumptions for employment benefit obligations | December 31, 2020 December 31, 2019 Discount rate 0.20 % 0.20 % Mortality tables BVG2015 GT BVG2015 GT Salary growth rate 1.00 % 1.00 % Pension growth rate 0.00 % 0.00 % |
Schedule of funding of defined benefit pensions and actuarial adjustments on plan liabilities | 2020 2019 Present value of defined benefit obligation (9,406,967) (8,583,214) Fair value of plan assets 7,714,430 7,101,476 Deficit in the plan (1,692,537) (1,481,738) Experience adjustment (208,572) (1,048,239) Actuarial gain/(loss) on plan assets (24,957) 302,384 |
Schedule of estimated benefit payments | 2021 351,000 2022 342,000 2023 336,000 2024 716,000 2025 313,000 2026‑2030 1,572,000 |
Finance costs (Tables)
Finance costs (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Finance costs | |
Schedule of finance costs | 2020 2019 2018 Interest income 35,305 36,874 — Interest expense on leases (19,042) (22,603) — Interest cost (50,460) (105,915) (134,307) Foreign exchange losses (581,128) (84,803) (85,866) Finance costs (615,325) (176,447) (220,173) |
Loss per share (Tables)
Loss per share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Loss per share | |
Schedule of loss per share | 2020 2019 2018 Loss attributable to equity holders of the Company (12,858,599) (14,780,604) (1,644,798) Weighted average number of shares in issue 26,681,774 26,428,269 23,293,237 Basic and diluted loss per share (0.48) (0.56) (0.07) |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related party transactions | |
Schedule of key management compensation | Key management compensation 2020 2019 2018 Salaries, other short‑term employee benefits and post-employment benefits 1,314,723 1,156,427 522,163 Consulting fees 317,425 364,535 577,078 Share‑based compensation 975,579 1,434,190 2,019,430 2,607,727 2,955,152 3,118,671 |
Summary of significant accoun_4
Summary of significant accounting policies - Consolidation and Segments (Details) | 12 Months Ended |
Dec. 31, 2020segmentitem | |
Summary of significant accounting policies | |
Number of consolidated subsidiaries | item | 3 |
Number of segments | segment | 1 |
Summary of significant accoun_5
Summary of significant accounting policies - Property, plant and equipment (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Computer equipment | |
Property, plant and equipment | |
Estimated useful life | 3 years |
Laboratory equipment | |
Property, plant and equipment | |
Estimated useful life | 4 years |
Furniture and fixtures | |
Property, plant and equipment | |
Estimated useful life | 5 years |
Chemical library | |
Property, plant and equipment | |
Estimated useful life | 5 years |
Summary of significant accoun_6
Summary of significant accounting policies - Financial assets (Details) | 12 Months Ended |
Dec. 31, 2020category | |
Summary of significant accounting policies | |
Number of categories of financial assets | 1 |
Summary of significant accoun_7
Summary of significant accounting policies - Pension obligation (Details) | 12 Months Ended |
Dec. 31, 2020item | |
Summary of significant accounting policies | |
Number of pension schemes | 1 |
Financial risk management (Deta
Financial risk management (Details) - CHF (SFr) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financial risk management | |||
Interest-bearing debt | SFr 0 | ||
Short-term debt | 0 | SFr 0 | |
Long-term debt | SFr 0 | SFr 0 | |
Foreign exchange risk | |||
Financial risk management | |||
Subsequent period of currency transactions economically hedged | 12 months | ||
Foreign exchange risk | EUR | |||
Financial risk management | |||
Percentage of reasonably possible increase in risk assumption | 10.00% | 10.00% | 10.00% |
Increase (decrease) in net income due to reasonably possible increase in risk assumption | SFr (4,064) | SFr (19,920) | SFr (52,398) |
Increase (decrease) in shareholders' equity due to reasonably possible increase in risk assumption | SFr (4,064) | SFr (19,920) | SFr (52,398) |
Percentage of reasonably possible decrease in risk assumption | (10.00%) | (10.00%) | (10.00%) |
Increase (decrease) in net income due to reasonably possible decrease in risk assumption | SFr 4,064 | SFr 19,920 | SFr 52,398 |
Increase (decrease) in shareholders' equity due to reasonably possible decrease in risk assumption | SFr 4,064 | SFr 19,920 | SFr 52,398 |
Foreign exchange risk | GBP | |||
Financial risk management | |||
Percentage of reasonably possible increase in risk assumption | 10.00% | 10.00% | 10.00% |
Increase (decrease) in net income due to reasonably possible increase in risk assumption | SFr (14,723) | SFr (12,489) | SFr (15,965) |
Increase (decrease) in shareholders' equity due to reasonably possible increase in risk assumption | SFr (14,723) | SFr (12,489) | SFr (15,965) |
Percentage of reasonably possible decrease in risk assumption | (10.00%) | (10.00%) | (10.00%) |
Increase (decrease) in net income due to reasonably possible decrease in risk assumption | SFr 14,723 | SFr 12,489 | SFr 15,965 |
Increase (decrease) in shareholders' equity due to reasonably possible decrease in risk assumption | SFr 14,723 | SFr 12,489 | SFr 15,965 |
Foreign exchange risk | USD | |||
Financial risk management | |||
Percentage of reasonably possible increase in risk assumption | 10.00% | 10.00% | 10.00% |
Increase (decrease) in net income due to reasonably possible increase in risk assumption | SFr 644,865 | SFr 972,596 | SFr 1,224,506 |
Increase (decrease) in shareholders' equity due to reasonably possible increase in risk assumption | SFr 644,865 | SFr 972,596 | SFr 1,224,506 |
Percentage of reasonably possible decrease in risk assumption | (10.00%) | (10.00%) | (10.00%) |
Increase (decrease) in net income due to reasonably possible decrease in risk assumption | SFr (644,865) | SFr (972,596) | SFr (1,224,506) |
Increase (decrease) in shareholders' equity due to reasonably possible decrease in risk assumption | SFr (644,865) | SFr (972,596) | SFr (1,224,506) |
Foreign exchange risk | Minimum | |||
Financial risk management | |||
Percentage of currency transactions economically hedged | 50.00% | ||
Foreign exchange risk | Maximum | |||
Financial risk management | |||
Percentage of currency transactions economically hedged | 100.00% | ||
Interest rate risk | |||
Financial risk management | |||
Percentage of reasonably possible increase in risk assumption | 10.00% | ||
Percentage of reasonably possible decrease in risk assumption | (10.00%) |
Financial risk management - net
Financial risk management - net debt (Details) - CHF (SFr) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Net debt | ||
Net debt beginning balance | SFr 31,000,496 | |
Cash flows | (11,774,678) | SFr (9,666,750) |
Acquisition - Leases | (27,612) | (322,528) |
Effect of modification to lease terms | (434,150) | |
Disposals | 77,199 | |
Foreign exchange differences | (648,681) | (143,857) |
Net debt ending balance | 18,192,574 | 31,000,496 |
After application of IFRS 16 | ||
Net debt | ||
Net debt beginning balance | 41,133,631 | |
Leases | ||
Net debt | ||
Net debt beginning balance | (550,245) | |
Cash flows | 367,412 | 316,348 |
Acquisition - Leases | (27,612) | (322,528) |
Effect of modification to lease terms | (434,150) | |
Disposals | 77,199 | |
Foreign exchange differences | 445 | |
Net debt ending balance | (567,396) | (550,245) |
Leases | After application of IFRS 16 | ||
Net debt | ||
Net debt beginning balance | (544,510) | |
Cash and cash equivalents | ||
Net debt | ||
Net debt beginning balance | 31,536,803 | |
Cash flows | (12,193,082) | (9,989,053) |
Foreign exchange differences | (648,681) | (144,302) |
Net debt ending balance | 18,695,040 | 31,536,803 |
Cash and cash equivalents | After application of IFRS 16 | ||
Net debt | ||
Net debt beginning balance | 41,670,158 | |
Other financial assets | ||
Net debt | ||
Net debt beginning balance | 13,938 | |
Cash flows | 50,992 | 5,955 |
Net debt ending balance | SFr 64,930 | 13,938 |
Other financial assets | After application of IFRS 16 | ||
Net debt | ||
Net debt beginning balance | SFr 7,983 |
Financial risk management - lea
Financial risk management - lease liabilities (Details) - CHF (SFr) | Dec. 31, 2020 | Dec. 31, 2019 |
Lease liabilities | ||
Lease liabilites - cash outflow | SFr 602,044 | SFr 575,618 |
Lease liabilities | 567,396 | 550,245 |
Not later than one year | ||
Lease liabilities | ||
Lease liabilites - cash outflow | 331,911 | 392,954 |
Later than one year and not later than five years | ||
Lease liabilities | ||
Lease liabilites - cash outflow | SFr 270,133 | SFr 182,664 |
Critical accounting estimates_2
Critical accounting estimates and judgments - Share-based compensation (Details) - CHF (SFr) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Critical accounting estimates and judgments | |||
Percentage of reasonably possible increase in volatility assumption | 10.00% | 10.00% | 10.00% |
Percentage of reasonably possible decrease in volatility assumption | (10.00%) | (10.00%) | (10.00%) |
Risk free interest rate assumption, high amount | 0.50% | 0.50% | 0.50% |
Risk free interest rate assumption, low amount | 0.00% | 0.00% | 0.00% |
Expense from share-based transactions, if calculated on higher reasonably possible assumptions | SFr 888,845 | SFr 1,239,680 | SFr 1,696,301 |
Expense from share-based transactions, if calculated on lower reasonably possible assumptions | 1,390,306 | 2,023,158 | 2,762,285 |
Expense from share-based payment transactions | SFr 1,176,413 | SFr 1,685,965 | SFr 2,298,933 |
Segment information (Details)
Segment information (Details) | 12 Months Ended | ||
Dec. 31, 2020CHF (SFr)segment | Dec. 31, 2019CHF (SFr) | Dec. 31, 2018CHF (SFr) | |
Segments | |||
Number of segments | segment | 1 | ||
Fees from sale of license rights | SFr 4,876,000 | ||
Collaborative research funding | SFr 3,612,819 | SFr 2,762,830 | 1,167,855 |
Grants earned | 244,298 | 49,405 | 609,212 |
Other service income | 22,026 | 21,430 | 49,606 |
Revenue and other operating income | 3,879,143 | 2,833,665 | 6,702,673 |
Long-lived assets | 692,248 | 639,877 | |
Operating costs | 16,122,417 | 17,437,822 | 8,127,298 |
Capital expenditure | 59,414 | 28,459 | 9,054 |
Switzerland | |||
Segments | |||
Long-lived assets | 665,012 | 498,066 | |
Operating costs | 16,050,488 | 17,409,808 | 8,119,953 |
United States of America | |||
Segments | |||
Long-lived assets | 26,847 | 141,420 | |
Operating costs | 64,922 | 21,214 | |
France | |||
Segments | |||
Long-lived assets | 389 | 391 | |
Operating costs | 7,007 | 6,800 | 7,345 |
Indivior PLC | |||
Segments | |||
Revenue and other operating income | 3,612,819 | 2,762,830 | 6,043,855 |
The Michael J. Fox Foundation | |||
Segments | |||
Revenue and other operating income | 609,212 | ||
Eurostars/Innosuisse | |||
Segments | |||
Revenue and other operating income | 244,298 | 49,405 | |
Other counterparties | |||
Segments | |||
Revenue and other operating income | SFr 22,026 | SFr 21,430 | SFr 49,606 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - CHF (SFr) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash and cash equivalents | ||||
Cash at bank and on hand | SFr 18,695,040 | SFr 26,889,923 | ||
Short term deposits in USD | 4,646,880 | |||
Total cash and cash equivalents | SFr 18,695,040 | SFr 31,536,803 | SFr 41,670,158 | SFr 2,579,248 |
Percentage of cash and cash equivalents | 100.00% | 100.00% | ||
Cash on hand | SFr 157 | SFr 157 | ||
Short-term deferred income | 86,481 | 165,389 | ||
P-1 / A-1 | ||||
Cash and cash equivalents | ||||
Balances with banks | SFr 18,694,883 | SFr 31,536,646 | ||
CHF | ||||
Cash and cash equivalents | ||||
Percentage of cash and cash equivalents | 60.53% | 64.31% | ||
USD | ||||
Cash and cash equivalents | ||||
Percentage of cash and cash equivalents | 38.70% | 35.03% | ||
EUR | ||||
Cash and cash equivalents | ||||
Percentage of cash and cash equivalents | 0.63% | 0.26% | ||
GBP | ||||
Cash and cash equivalents | ||||
Percentage of cash and cash equivalents | 0.14% | 0.40% |
Other current assets (Details)
Other current assets (Details) | Dec. 31, 2020CHF (SFr)Counterparty | Dec. 31, 2019CHF (SFr)Counterparty |
Other current assets | ||
Other financial assets | SFr 64,930 | SFr 13,968 |
Receivables | 68,373 | 118,028 |
Prepayments | 498,382 | 720,063 |
Deferred costs | 162,839 | |
Total other current assets | 794,524 | 852,059 |
Accumulated impairment | Receivables | ||
Other current assets | ||
Expected loss allowance | 0 | 0 |
Non-government customers | ||
Other current assets | ||
Receivables | SFr 20,577 | SFr 88,075 |
Number of counterparties from which receivables are due | Counterparty | 4 | 5 |
Right-of-use assets (Details)
Right-of-use assets (Details) - CHF (SFr) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Right-of-use assets | ||
Opening amount | SFr 543,340 | |
Additions | 27,612 | SFr 322,528 |
Depreciation charge | (359,474) | (324,143) |
Effect of modification to lease terms | 434,150 | |
Disposals | (72,504) | |
Exchange differences | (7,780) | 445 |
Closing amount | 565,344 | 543,340 |
Cash outflow for leases | 367,412 | 316,348 |
Research and development expenses | ||
Right-of-use assets | ||
Depreciation charge | (291,107) | (259,940) |
General and administration expenses | ||
Right-of-use assets | ||
Depreciation charge | (68,367) | (64,203) |
Cost | ||
Right-of-use assets | ||
Opening amount | 867,038 | |
Closing amount | 1,182,506 | 867,038 |
Accumulated depreciation | ||
Right-of-use assets | ||
Opening amount | (323,698) | |
Closing amount | (617,162) | (323,698) |
After application of IFRS 16 | ||
Right-of-use assets | ||
Opening amount | 544,510 | |
Properties | ||
Right-of-use assets | ||
Opening amount | 496,126 | |
Additions | 27,612 | 308,987 |
Depreciation charge | (333,714) | (296,656) |
Effect of modification to lease terms | 434,150 | |
Disposals | (72,504) | |
Exchange differences | (7,780) | 445 |
Closing amount | 543,890 | 496,126 |
Properties | Cost | ||
Right-of-use assets | ||
Opening amount | 792,337 | |
Closing amount | 1,111,338 | 792,337 |
Properties | Accumulated depreciation | ||
Right-of-use assets | ||
Opening amount | (296,211) | |
Closing amount | (567,448) | (296,211) |
Properties | After application of IFRS 16 | ||
Right-of-use assets | ||
Opening amount | 483,350 | |
Equipment | ||
Right-of-use assets | ||
Opening amount | 47,214 | |
Additions | 13,541 | |
Depreciation charge | (25,760) | (27,487) |
Closing amount | 21,454 | 47,214 |
Equipment | Cost | ||
Right-of-use assets | ||
Opening amount | 74,701 | |
Closing amount | 71,168 | 74,701 |
Equipment | Accumulated depreciation | ||
Right-of-use assets | ||
Opening amount | (27,487) | |
Closing amount | SFr (49,714) | (27,487) |
Equipment | After application of IFRS 16 | ||
Right-of-use assets | ||
Opening amount | SFr 61,160 |
Property, plant and equipment_2
Property, plant and equipment (Details) - CHF (SFr) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, plant and equipment | ||
Opening amount | SFr 27,626 | SFr 8,868 |
Additions | 59,414 | 28,459 |
Depreciation charge | (19,280) | (9,701) |
Closing amount | 67,760 | 27,626 |
Research and development expenses | ||
Property, plant and equipment | ||
Depreciation charge | (11,759) | (4,732) |
General and administration expenses | ||
Property, plant and equipment | ||
Depreciation charge | (7,521) | (4,969) |
Cost | ||
Property, plant and equipment | ||
Opening amount | 2,837,594 | |
Closing amount | 2,897,008 | 2,837,594 |
Accumulated depreciation | ||
Property, plant and equipment | ||
Opening amount | (2,809,968) | |
Closing amount | (2,829,248) | (2,809,968) |
Equipment | ||
Property, plant and equipment | ||
Opening amount | 27,626 | 8,868 |
Additions | 59,414 | 28,459 |
Depreciation charge | (19,280) | (9,701) |
Closing amount | 67,760 | 27,626 |
Equipment | Cost | ||
Property, plant and equipment | ||
Opening amount | 1,622,865 | |
Closing amount | 1,682,279 | 1,622,865 |
Equipment | Accumulated depreciation | ||
Property, plant and equipment | ||
Opening amount | (1,595,239) | |
Closing amount | (1,614,519) | (1,595,239) |
Furniture and fixtures | Cost | ||
Property, plant and equipment | ||
Opening amount | 7,564 | |
Closing amount | 7,564 | 7,564 |
Furniture and fixtures | Accumulated depreciation | ||
Property, plant and equipment | ||
Opening amount | (7,564) | |
Closing amount | (7,564) | (7,564) |
Chemical library | Cost | ||
Property, plant and equipment | ||
Opening amount | 1,207,165 | |
Closing amount | 1,207,165 | 1,207,165 |
Chemical library | Accumulated depreciation | ||
Property, plant and equipment | ||
Opening amount | (1,207,165) | |
Closing amount | SFr (1,207,165) | SFr (1,207,165) |
Non-current financial assets (D
Non-current financial assets (Details) - CHF (SFr) | Dec. 31, 2020 | Dec. 31, 2019 |
Non-current financial assets | ||
Security rental deposits | SFr 59,144 | SFr 68,911 |
Total non-current financial assets | SFr 59,144 | SFr 68,911 |
Payables and accruals (Details)
Payables and accruals (Details) - CHF (SFr) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Payables and accruals | ||
Trade payables | SFr 983,545 | SFr 2,216,147 |
Social security and other taxes | 171,876 | 107,415 |
Accrued expenses | 1,336,506 | 1,872,849 |
Total payables and accruals | SFr 2,491,927 | SFr 4,196,411 |
Maturity period of payables | 3 months |
Deferred income (Details)
Deferred income (Details) - CHF (SFr) | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred income | ||
Deferred income | SFr 86,481 | SFr 330,779 |
Not later than one year | ||
Deferred income | ||
Deferred income | SFr 86,481 | 165,389 |
Later than one year and not later than two years | ||
Deferred income | ||
Deferred income | SFr 165,390 |
Share capital (Details)
Share capital (Details) - CHF (SFr) | Dec. 28, 2020 | May 17, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Share capital | |||||
Number of shares at beginning of period | 26,605,148 | 26,405,555 | |||
Settlement of suppliers' invoices | 207,190 | 196,610 | |||
Net sale (purchase) of treasury shares | (26,564) | 2,983 | |||
Other net sale of treasury shares | 333,000 | ||||
Number of shares at end of period | 27,118,774 | 26,605,148 | 26,405,555 | ||
Share capital | SFr 32,848,635 | SFr 32,848,635 | |||
Number of shares issued | 32,848,635 | 32,848,635 | |||
Par value per share | SFr 1 | SFr 1 | |||
Other net sales | SFr 749,050 | ||||
Number of treasury shares used to purchase services | 207,190 | 196,610 | |||
Settlement of suppliers invoices | SFr 285,745 | SFr 289,214 | SFr 208,084 | ||
Net sales (purchases) under liquidity agreement | (29,037) | 5,986 | SFr (5,190) | ||
Addex Pharma SA | |||||
Share capital | |||||
Proportion of ownership interest in subsidiary | 100.00% | ||||
Kepler | |||||
Share capital | |||||
Other net sale of treasury shares | 333,000 | ||||
Other net sales | SFr 749,050 | ||||
Kepler | Treasury Shares Reserve | |||||
Share capital | |||||
Treasury shares | 54,489 | 27,925 | |||
Kepler | Other financial assets | |||||
Share capital | |||||
Treasury shares | SFr 64,930 | SFr 13,968 | |||
Roger Mills | |||||
Share capital | |||||
Number of treasury shares used to purchase services | 114,851 | 113,099 | |||
Common shares | |||||
Share capital | |||||
Number of shares at beginning of period | 32,848,635 | 28,564,031 | |||
Issue of shares - capital increase | 4,284,604 | ||||
Number of shares at end of period | 32,848,635 | 32,848,635 | 28,564,031 | ||
Treasury shares | |||||
Share capital | |||||
Number of shares at beginning of period | (6,243,487) | (2,158,476) | |||
Issue of shares - capital increase | (4,284,604) | ||||
Settlement of suppliers' invoices | 207,190 | 196,610 | |||
Net sale (purchase) of treasury shares | (26,564) | 2,983 | |||
Other net sale of treasury shares | 333,000 | ||||
Number of shares at end of period | (5,729,861) | (6,243,487) | (2,158,476) | ||
Treasury shares | Addex Pharma SA | |||||
Share capital | |||||
Issue of shares - capital increase | 4,284,604 | ||||
Par value per share | SFr 1 |
Share-based compensation (Detai
Share-based compensation (Details) - CHF (SFr) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based compensation | |||
Share-based compensation | SFr 1,176,413 | SFr 1,685,965 | SFr 2,298,933 |
Equity sharing certificate plan | |||
Share-based compensation | |||
Share-based compensation | 14,644 | 37,776 | 77,336 |
Share purchase plan | |||
Share-based compensation | |||
Share-based compensation | 49,813 | 45,593 | 38,296 |
Share option plans | |||
Share-based compensation | |||
Share-based compensation | 1,111,956 | 1,602,596 | 2,183,301 |
Research and development expenses | |||
Share-based compensation | |||
Share-based compensation | 354,934 | 433,536 | 880,982 |
General and administration expenses | |||
Share-based compensation | |||
Share-based compensation | SFr 821,479 | SFr 1,252,429 | SFr 1,417,951 |
Share-based compensation - ESC
Share-based compensation - ESC (Details) - Equity sharing certificate plan | Apr. 01, 2019EquityInstruments | Jun. 01, 2010shares | Dec. 31, 2020EquityInstruments | Dec. 31, 2019CHF (SFr)EquityInstruments | Dec. 31, 2018EquityInstruments |
Share-based compensation | |||||
Number of shares for which right to subscribe is provided | shares | 1,000 | ||||
Beginning balance | 198,750 | 265,600 | 275,933 | ||
Expired | 0 | (66,850) | (10,333) | ||
Ending balance | 198,750 | 198,750 | 265,600 | ||
Exercisable | 171,750 | 144,750 | 184,600 | ||
Number of ESCs vested, for which exercise period has been extended | 90,750 | ||||
Period of exercise extension for ESCs vested | 5 years | ||||
Expense related to extension of exercise period for ESCs vested | SFr | SFr 8,667 |
Share-based compensation - ES_2
Share-based compensation - ESC outstanding rights (Details) - Equity sharing certificate plan - EquityInstruments | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Share-based compensation | ||||
Outstanding subscription rights | 198,750 | 198,750 | 265,600 | 275,933 |
Not later than one year | ||||
Share-based compensation | ||||
Outstanding subscription rights | 151,600 | |||
Later than one year and not later than two years | ||||
Share-based compensation | ||||
Outstanding subscription rights | 6,000 | |||
Later than three years and not later than four years | ||||
Share-based compensation | ||||
Outstanding subscription rights | 90,750 | |||
Later than four years and not later than five years | ||||
Share-based compensation | ||||
Outstanding subscription rights | 90,750 | |||
Later than six years and not later than seven years | ||||
Share-based compensation | ||||
Outstanding subscription rights | 108,000 | |||
Later than seven years and not later than eight years | ||||
Share-based compensation | ||||
Outstanding subscription rights | 108,000 | |||
Later than eight years and not later than nine years | ||||
Share-based compensation | ||||
Outstanding subscription rights | 108,000 | |||
Subscription Price 1.00CHF / Floor Price 2.30CHF | ||||
Share-based compensation | ||||
Outstanding subscription rights | 90,750 | 90,750 | 157,600 | |
Subscription Price 1.00CHF / Floor Price 2.30CHF | Not later than one year | ||||
Share-based compensation | ||||
Outstanding subscription rights | 151,600 | |||
Subscription Price 1.00CHF / Floor Price 2.30CHF | Later than one year and not later than two years | ||||
Share-based compensation | ||||
Outstanding subscription rights | 6,000 | |||
Subscription Price 1.00CHF / Floor Price 2.30CHF | Later than three years and not later than four years | ||||
Share-based compensation | ||||
Outstanding subscription rights | 90,750 | |||
Subscription Price 1.00CHF / Floor Price 2.30CHF | Later than four years and not later than five years | ||||
Share-based compensation | ||||
Outstanding subscription rights | 90,750 | |||
Subscription Price 2.00CHF / Floor Price 2.30CHF | ||||
Share-based compensation | ||||
Outstanding subscription rights | 108,000 | 108,000 | 108,000 | |
Subscription Price 2.00CHF / Floor Price 2.30CHF | Later than six years and not later than seven years | ||||
Share-based compensation | ||||
Outstanding subscription rights | 108,000 | |||
Subscription Price 2.00CHF / Floor Price 2.30CHF | Later than seven years and not later than eight years | ||||
Share-based compensation | ||||
Outstanding subscription rights | 108,000 | |||
Subscription Price 2.00CHF / Floor Price 2.30CHF | Later than eight years and not later than nine years | ||||
Share-based compensation | ||||
Outstanding subscription rights | 108,000 |
Share-based compensation - Shar
Share-based compensation - Share option plans (Details) - Share option plans | Jul. 01, 2020OptionsSFr / shares | Apr. 01, 2020OptionsSFr / shares | Jan. 01, 2020OptionsSFr / shares | Oct. 01, 2019OptionsSFr / shares | Jul. 01, 2019OptionsSFr / shares | Apr. 01, 2019Options | Jan. 01, 2019OptionsSFr / shares | Jun. 01, 2018OptionsSFr / shares | Dec. 31, 2020CHF (SFr)Options | Dec. 31, 2019CHF (SFr)Options | Dec. 31, 2018Options |
Share-based compensation | |||||||||||
Vesting period of options granted | 4 years | 4 years | 4 years | ||||||||
Exercise period of options granted | 10 years | 10 years | 10 years | ||||||||
Exercise price of share options granted | SFr / shares | SFr 1.45 | SFr 1.14 | SFr 1.64 | SFr 1.80 | SFr 1.50 | SFr 2.25 | SFr 3 | ||||
Beginning balance | 5,540,600 | 5,128,680 | 5,540,600 | 5,128,680 | 2,661,096 | ||||||
Granted | 31,362 | 1,158,011 | 38,487 | 30,000 | 187,189 | 243,506 | 2,467,584 | 1,227,860 | 460,695 | 2,467,584 | |
Exercised | (48,775) | ||||||||||
Ending balance | 6,768,460 | 5,540,600 | 5,128,680 | ||||||||
Exercisable | 4,235,706 | 2,811,825 | 1,736,764 | ||||||||
Number of options vested, for which exercise period has been extended | 194,687 | 506,351 | |||||||||
Period of exercise extension for options vested | 5 years | 5 years | |||||||||
Expense related to extension of exercise period for options vested | SFr | SFr 25,309 | SFr 75,331 |
Share-based compensation - Sh_2
Share-based compensation - Share options outstanding (Details) - Share option plans - Options | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Share-based compensation | ||||
Outstanding share options | 6,768,460 | 5,540,600 | 5,128,680 | 2,661,096 |
Not later than one year | ||||
Share-based compensation | ||||
Outstanding share options | 10,000 | 49,687 | 555,126 | |
Later than one year and not later than two years | ||||
Share-based compensation | ||||
Outstanding share options | 155,000 | 49,687 | ||
Later than two years and not later than three years | ||||
Share-based compensation | ||||
Outstanding share options | 155,000 | |||
Later than three years and not later than four years | ||||
Share-based compensation | ||||
Outstanding share options | 506,351 | |||
Later than four years and not later than five years | ||||
Share-based compensation | ||||
Outstanding share options | 49,687 | 506,351 | ||
Later than five years and not later than six years | ||||
Share-based compensation | ||||
Outstanding share options | 145,000 | |||
Later than six years and not later than seven years | ||||
Share-based compensation | ||||
Outstanding share options | 1,901,283 | |||
Later than seven years and not later than eight years | ||||
Share-based compensation | ||||
Outstanding share options | 2,711,090 | 1,901,283 | ||
Later than eight years and not later than nine years | ||||
Share-based compensation | ||||
Outstanding share options | 255,676 | 2,711,090 | 1,901,283 | |
Later than nine years and not later than ten years | ||||
Share-based compensation | ||||
Outstanding share options | 1,189,373 | 217,189 | 2,467,584 | |
Exercise Price CHF1.00 to 1.50 | ||||
Share-based compensation | ||||
Outstanding share options | 1,668,823 | 479,450 | 292,261 | |
Exercise Price CHF1.00 to 1.50 | Later than six years and not later than seven years | ||||
Share-based compensation | ||||
Outstanding share options | 292,261 | |||
Exercise Price CHF1.00 to 1.50 | Later than seven years and not later than eight years | ||||
Share-based compensation | ||||
Outstanding share options | 292,261 | |||
Exercise Price CHF1.00 to 1.50 | Later than eight years and not later than nine years | ||||
Share-based compensation | ||||
Outstanding share options | 187,189 | 292,261 | ||
Exercise Price CHF1.00 to 1.50 | Later than nine years and not later than ten years | ||||
Share-based compensation | ||||
Outstanding share options | 1,189,373 | 187,189 | ||
Exercise Price CHF1.51 to 2.00 | ||||
Share-based compensation | ||||
Outstanding share options | 2,338,547 | 2,300,060 | 2,318,835 | |
Exercise Price CHF1.51 to 2.00 | Not later than one year | ||||
Share-based compensation | ||||
Outstanding share options | 10,000 | 49,687 | 555,126 | |
Exercise Price CHF1.51 to 2.00 | Later than one year and not later than two years | ||||
Share-based compensation | ||||
Outstanding share options | 105,000 | 49,687 | ||
Exercise Price CHF1.51 to 2.00 | Later than two years and not later than three years | ||||
Share-based compensation | ||||
Outstanding share options | 105,000 | |||
Exercise Price CHF1.51 to 2.00 | Later than three years and not later than four years | ||||
Share-based compensation | ||||
Outstanding share options | 506,351 | |||
Exercise Price CHF1.51 to 2.00 | Later than four years and not later than five years | ||||
Share-based compensation | ||||
Outstanding share options | 49,687 | 506,351 | ||
Exercise Price CHF1.51 to 2.00 | Later than five years and not later than six years | ||||
Share-based compensation | ||||
Outstanding share options | 95,000 | |||
Exercise Price CHF1.51 to 2.00 | Later than six years and not later than seven years | ||||
Share-based compensation | ||||
Outstanding share options | 1,609,022 | |||
Exercise Price CHF1.51 to 2.00 | Later than seven years and not later than eight years | ||||
Share-based compensation | ||||
Outstanding share options | 1,609,022 | |||
Exercise Price CHF1.51 to 2.00 | Later than eight years and not later than nine years | ||||
Share-based compensation | ||||
Outstanding share options | 68,487 | 1,609,022 | ||
Exercise Price CHF1.51 to 2.00 | Later than nine years and not later than ten years | ||||
Share-based compensation | ||||
Outstanding share options | 30,000 | |||
Exercise Price CHF2.01 to 2.50 | ||||
Share-based compensation | ||||
Outstanding share options | 293,506 | 293,506 | 50,000 | |
Exercise Price CHF2.01 to 2.50 | Later than one year and not later than two years | ||||
Share-based compensation | ||||
Outstanding share options | 50,000 | |||
Exercise Price CHF2.01 to 2.50 | Later than two years and not later than three years | ||||
Share-based compensation | ||||
Outstanding share options | 50,000 | |||
Exercise Price CHF2.01 to 2.50 | Later than five years and not later than six years | ||||
Share-based compensation | ||||
Outstanding share options | 50,000 | |||
Exercise Price CHF2.01 to 2.50 | Later than seven years and not later than eight years | ||||
Share-based compensation | ||||
Outstanding share options | 243,506 | |||
Exercise Price CHF2.01 to 2.50 | Later than eight years and not later than nine years | ||||
Share-based compensation | ||||
Outstanding share options | 243,506 | |||
Exercise Price CHF2.51 to 3.00 | ||||
Share-based compensation | ||||
Outstanding share options | 2,467,584 | 2,467,584 | 2,467,584 | |
Exercise Price CHF2.51 to 3.00 | Later than seven years and not later than eight years | ||||
Share-based compensation | ||||
Outstanding share options | 2,467,584 | |||
Exercise Price CHF2.51 to 3.00 | Later than eight years and not later than nine years | ||||
Share-based compensation | ||||
Outstanding share options | 2,467,584 | |||
Exercise Price CHF2.51 to 3.00 | Later than nine years and not later than ten years | ||||
Share-based compensation | ||||
Outstanding share options | 2,467,584 |
Share-based compensation - Sh_3
Share-based compensation - Share options plans assumptions (Details) - Share option plans - CHF (SFr) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based compensation | |||
Weighted average fair value of share options granted | SFr 0.45 | SFr 0.68 | |
Weighted average share price per share at the grant date | SFr 1.16 | SFr 1.93 | SFr 2.94 |
Weighted average strike price per share | SFr 1.16 | SFr 1.92 | SFr 3 |
Share-based compensation - Sh_4
Share-based compensation - Share purchase plan (Details) - Share purchase plan | 12 Months Ended | ||
Dec. 31, 2020CHF (SFr)EquityInstruments | Dec. 31, 2019CHF (SFr)EquityInstruments | Dec. 31, 2018CHF (SFr)EquityInstruments | |
Share-based compensation | |||
Shares transferred to settle expense | EquityInstruments | 207,190 | 196,610 | 87,176 |
Consulting fees settled in shares | SFr | SFr 285,745 | SFr 289,214 | SFr 208,085 |
Revenue from contract with cu_2
Revenue from contract with customer (Details) € in Millions, $ in Millions | Oct. 30, 2020USD ($) | Jan. 02, 2018USD ($)item | Jan. 31, 2018USD ($) | Dec. 20, 2019USD ($) | Dec. 31, 2020CHF (SFr) | Dec. 31, 2019CHF (SFr) | Dec. 31, 2018CHF (SFr) | Dec. 31, 2004EUR (€) |
Revenue from contract with customer | ||||||||
Revenue from contracts with customers | SFr | SFr 3,612,819 | SFr 2,762,830 | SFr 6,043,855 | |||||
Indivior PLC | ||||||||
Revenue from contract with customer | ||||||||
Number of distinct material promises and performance obligations | item | 2 | |||||||
Indivior PLC | Rights granted | ||||||||
Revenue from contract with customer | ||||||||
Revenue from contracts with customers | $ | $ 5 | |||||||
Indivior PLC | Achievement of pre-specified milestones | ||||||||
Revenue from contract with customer | ||||||||
Variable consideration allocated to contract | $ | $ 330 | |||||||
Indivior PLC | Research | ||||||||
Revenue from contract with customer | ||||||||
Revenue from contracts with customers | SFr | 3,600,000 | 2,800,000 | 1,200,000 | |||||
Initial research term | 2 years | |||||||
Increment period for extension of research term | 12 months | |||||||
Number of newly identified compounds selected | item | 1 | |||||||
Additional funding for research and development costs incurred | $ | $ 2.8 | $ 1.6 | ||||||
Contract liabilities | SFr | 700,000 | 900,000 | ||||||
Indivior PLC | Research | Minimum | ||||||||
Revenue from contract with customer | ||||||||
Annual funding for research and development costs incurred | $ | $ 2 | |||||||
Indivior PLC | Indivior PLC | Research | ||||||||
Revenue from contract with customer | ||||||||
Number of newly identified compounds selected | item | 1 | |||||||
Janssen Pharmaceuticals Inc. | Development | ||||||||
Revenue from contract with customer | ||||||||
Revenue from contracts with customers | SFr | SFr 0 | SFr 0 | SFr 0 | |||||
Janssen Pharmaceuticals Inc. | Development | Maximum | ||||||||
Revenue from contract with customer | ||||||||
Variable consideration allocated to contract | € | € 109 |
Other income (Details)
Other income (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2019CHF (SFr) | Dec. 31, 2020CHF (SFr) | Dec. 31, 2019CHF (SFr) | Dec. 31, 2018USD ($) | Dec. 31, 2018CHF (SFr) | |
Other income | |||||
Other income | SFr 266,324 | SFr 70,835 | SFr 658,818 | ||
Short-term deferred income | 86,481 | 165,389 | |||
Long term deferred income | 165,390 | ||||
Eurostars/Innosuisse | |||||
Other income | |||||
Proceeds from grants | SFr 380,184 | ||||
Other income | 244,298 | 49,405 | |||
Short-term deferred income | 86,481 | 165,389 | |||
Long term deferred income | 165,390 | ||||
The Michael J. Fox Foundation | |||||
Other income | |||||
Proceeds from grants | $ | $ 1.8 | ||||
Other income | SFr 609,212 | ||||
IT consultancy agreements | |||||
Other income | |||||
Other income | SFr 22,026 | SFr 21,430 |
Operating costs (Details)
Operating costs (Details) - CHF (SFr) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating costs | |||
Staff costs | SFr 4,397,004 | SFr 4,288,815 | SFr 2,224,206 |
Depreciation | 378,754 | 333,844 | 2,938 |
External research and development costs | 6,981,854 | 9,350,667 | 2,368,457 |
Laboratory consumables | 295,005 | 230,097 | 144,169 |
Patent maintenance and registration costs | 328,177 | 268,143 | 261,954 |
Professional fees | 1,399,123 | 1,951,661 | 2,313,722 |
Short term leases | 36,651 | 26,150 | 179,102 |
Insurance D&O | 1,505,897 | 44,142 | 19,358 |
Other operating costs | 799,952 | 944,303 | 613,392 |
Total operating costs | SFr 16,122,417 | SFr 17,437,822 | SFr 8,127,298 |
Operating costs - Additional In
Operating costs - Additional Information (Details) SFr in Millions | 12 Months Ended |
Dec. 31, 2020CHF (SFr) | |
Operating costs | |
Decrease in external research and development costs | SFr 2.4 |
Decrease in professional fees | 0.6 |
Increase in insurance costs | SFr 1.5 |
Staff costs (Details)
Staff costs (Details) - CHF (SFr) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Staff costs | |||
Wages and salaries | SFr 2,959,856 | SFr 2,438,448 | SFr 1,273,382 |
Social charges and insurances | 315,164 | 243,232 | 112,524 |
Value of share-based services | 901,425 | 1,310,888 | 719,374 |
Retirement benefit expenses | 220,559 | 296,247 | 118,926 |
Total staff costs | SFr 4,397,004 | SFr 4,288,815 | SFr 2,224,206 |
Staff costs - Additional Inform
Staff costs - Additional Information (Details) SFr in Millions | 12 Months Ended | |
Dec. 31, 2020CHF (SFr)employee | Dec. 31, 2019employee | |
Staff costs | ||
Increase in wages and salaries | SFr | SFr 0.5 | |
Average number of employees | employee | 22.2 | 16.7 |
Taxes (Details)
Taxes (Details) - CHF (SFr) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Taxes | |||
Loss before tax | SFr 12,858,599 | SFr 14,780,604 | SFr 1,644,798 |
Tax calculated at a tax rate of 13.99% (2019 and 2018 : 23.40%) | 1,798,918 | 3,458,661 | 384,883 |
Effect of different tax rates in USA and France | 11,046 | 926 | (617) |
Deductible expenses charged against equity / deferred costs for issuance of shares | 78,164 | 39,876 | 693,439 |
Sale of treasury shares by a subsidiary, recognized as financial income in standalone financial statements | (71,285) | (16,161) | (29,760) |
Expenses not deductible for tax purposes | (160,729) | (418,356) | (542,632) |
Temporary differences | (2,515) | (140) | |
Total tax losses not recognized as deferred tax asset | (1,653,599) | (3,064,806) | (505,313) |
Income tax expense | SFr 0 | SFr 0 | SFr 0 |
Applicable tax rate | 13.99% | 23.40% | 23.40% |
Deferred tax assets | SFr 0 | SFr 0 | SFr 0 |
Taxes - Tax loss (Details)
Taxes - Tax loss (Details) - CHF (SFr) | Jul. 18, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred taxes | ||||
Unrecorded tax losses carry forwards | SFr 183,370,289 | SFr 189,517,835 | SFr 55,415,217 | |
Tax losses renewed | SFr 138,115,931 | |||
Not later than one year | ||||
Deferred taxes | ||||
Unrecorded tax losses carry forwards | 1,224,210 | 15,982,220 | 27,481,171 | |
Later than one year and not later than two years | ||||
Deferred taxes | ||||
Unrecorded tax losses carry forwards | 3,540,541 | 1,224,210 | 15,982,220 | |
Later than two years and not later than three years | ||||
Deferred taxes | ||||
Unrecorded tax losses carry forwards | 141,425,567 | 3,540,541 | 1,224,210 | |
Later than three years and not later than four years | ||||
Deferred taxes | ||||
Unrecorded tax losses carry forwards | 290,949 | 141,425,567 | 3,540,541 | |
Later than four years and not later than five years | ||||
Deferred taxes | ||||
Unrecorded tax losses carry forwards | 3,586,490 | 290,949 | 3,309,636 | |
Later than five years and not later than six years | ||||
Deferred taxes | ||||
Unrecorded tax losses carry forwards | 23,467,858 | 3,586,490 | 290,949 | |
Later than six years and not later than seven years | ||||
Deferred taxes | ||||
Unrecorded tax losses carry forwards | SFr 9,834,675 | SFr 23,467,858 | SFr 3,586,490 |
Retirement benefits obligatio_3
Retirement benefits obligations (Details) - CHF (SFr) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined benefit plans | |||
Percentage of contributions by employee | 46.00% | ||
Percentage of contributions by employer | 54.00% | ||
Defined benefit obligation | SFr (9,406,967) | SFr (8,583,214) | |
Fair value of plan assets | 7,714,430 | 7,101,476 | |
Funded status | (1,692,537) | (1,481,738) | |
Current service cost | (315,727) | (286,515) | SFr (115,146) |
Past service cost | 102,764 | ||
Interest cost | (21,799) | (81,829) | (37,903) |
Interest income | 14,203 | 72,097 | 34,123 |
Company pension amount | SFr (220,559) | SFr (296,247) | SFr (118,926) |
Swiss Life | |||
Defined benefit plans | |||
Percentage of capital and interest guarantee | 100.00% |
Retirement benefits obligatio_4
Retirement benefits obligations - Movement (Details) - CHF (SFr) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Defined benefit plans | ||
Net defined benefit (liability) asset at beginning of period | SFr (1,481,738) | |
Plan assets gain/(loss) | (24,957) | SFr 302,384 |
Net defined benefit (liability) asset at end of period | (1,692,537) | (1,481,738) |
Defined benefit obligation | ||
Defined benefit plans | ||
Net defined benefit (liability) asset at beginning of period | (8,583,214) | (7,060,278) |
Current service cost | (315,727) | (286,515) |
Past service cost | 102,764 | |
Interest (cost) income | (21,799) | (81,829) |
Employee contributions | (205,085) | (166,150) |
Actuarial loss arising from changes in financial assumptions | (875,960) | |
Actuarial gain arising from changes in demographic assumptions | 91,212 | |
Actuarial loss on experience adjustment | (208,572) | (263,491) |
Benefits (paid)/ deposited | (175,334) | 59,797 |
Net defined benefit (liability) asset at end of period | (9,406,967) | (8,583,214) |
Fair value of plan assets | ||
Defined benefit plans | ||
Net defined benefit (liability) asset at beginning of period | 7,101,476 | 6,420,927 |
Interest (cost) income | 14,203 | 72,097 |
Employee contributions | 205,085 | 166,150 |
Employer contributions | 243,289 | 199,715 |
Plan assets gain/(loss) | (24,957) | 302,384 |
Benefits (paid)/ deposited | 175,334 | (59,797) |
Net defined benefit (liability) asset at end of period | SFr 7,714,430 | SFr 7,101,476 |
Retirement benefits obligatio_5
Retirement benefits obligations - Plan assets (Details) | Dec. 31, 2019 |
Retirement benefits obligations | |
Cash | 1.52% |
Bonds | 56.35% |
Equity instruments | 12.52% |
Real estate | 20.29% |
Mortgages | 8.18% |
Others | 1.14% |
Total | 100.00% |
Retirement benefits obligatio_6
Retirement benefits obligations - Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Actuarial assumptions | ||
Discount rate | 0.20% | 0.20% |
Salary growth rate | 1.00% | 1.00% |
Pension growth rate | 0.00% | 0.00% |
Discount rate | ||
Actuarial assumptions | ||
Percentage of reasonably possible increase in actuarial assumption | 0.25% | 0.25% |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption, percentage | (4.36%) | (4.47%) |
Percentage of reasonably possible decrease in actuarial assumption | (0.25%) | (0.25%) |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption, percentage | 5.06% | 5.22% |
Interest rates on retirement savings capital | ||
Actuarial assumptions | ||
Percentage of reasonably possible increase in actuarial assumption | 0.25% | 0.25% |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption, percentage | 0.63% | 0.59% |
Percentage of reasonably possible decrease in actuarial assumption | (0.25%) | (0.25%) |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption, percentage | (0.59%) | (0.53%) |
Salaries | ||
Actuarial assumptions | ||
Percentage of reasonably possible increase in actuarial assumption | 0.25% | 0.25% |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption, percentage | 0.03% | 0.03% |
Percentage of reasonably possible decrease in actuarial assumption | (0.25%) | (0.25%) |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption, percentage | (0.02%) | (0.02%) |
Life expectancy | ||
Actuarial assumptions | ||
Period of reasonably possible increase in actuarial assumption | 1 year | 1 year |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption, percentage | 1.85% | 1.86% |
Period of reasonably possible decrease in actuarial assumption | 1 year | 1 year |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption, percentage | (1.92%) | (1.92%) |
Retirement benefits obligatio_7
Retirement benefits obligations - Contributions and funding (Details) - CHF (SFr) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined benefit plans | |||
Estimate of contributions expected to be paid to plan for next annual reporting period | SFr 245,000 | ||
Net defined benefit (liability) asset | (1,692,537) | SFr (1,481,738) | |
Experience adjustment | (208,572) | (1,048,239) | |
Actuarial gain/(loss) on plan assets | (24,957) | 302,384 | |
Defined benefit obligation | |||
Defined benefit plans | |||
Net defined benefit (liability) asset | (9,406,967) | (8,583,214) | SFr (7,060,278) |
Fair value of plan assets | |||
Defined benefit plans | |||
Net defined benefit (liability) asset | 7,714,430 | 7,101,476 | SFr 6,420,927 |
Actuarial gain/(loss) on plan assets | SFr (24,957) | SFr 302,384 |
Retirement benefits obligatio_8
Retirement benefits obligations - Estimated benefit payments (Details) | Dec. 31, 2020CHF (SFr) |
Not later than one year | |
Defined benefit plans | |
Estimated defined benefit payments | SFr 351,000 |
Later than one year and not later than two years | |
Defined benefit plans | |
Estimated defined benefit payments | 342,000 |
Later than two years and not later than three years | |
Defined benefit plans | |
Estimated defined benefit payments | 336,000 |
Later than three years and not later than four years | |
Defined benefit plans | |
Estimated defined benefit payments | 716,000 |
Later than four years and not later than five years | |
Defined benefit plans | |
Estimated defined benefit payments | 313,000 |
Later than five years and not later than ten years | |
Defined benefit plans | |
Estimated defined benefit payments | SFr 1,572,000 |
Finance costs (Details)
Finance costs (Details) - CHF (SFr) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finance costs | |||
Interests income | SFr 35,305 | SFr 36,874 | |
Interests expense on leases | (19,042) | (22,603) | |
Interests cost | (50,460) | (105,915) | SFr (134,307) |
Foreign exchange losses | (581,128) | (84,803) | (85,866) |
Finance costs | (615,325) | SFr (176,447) | SFr (220,173) |
Increase in foreign exchange losses | SFr 500,000 |
Loss per share (Details)
Loss per share (Details) | 12 Months Ended | ||
Dec. 31, 2020CHF (SFr)EquityInstrumentsitemSFr / sharesshares | Dec. 31, 2019CHF (SFr)EquityInstrumentsitemSFr / sharesshares | Dec. 31, 2018CHF (SFr)EquityInstrumentsitemSFr / sharesshares | |
Earnings per share | |||
Loss attributable to equity holders of the Company | SFr | SFr (12,858,599) | SFr (14,780,604) | SFr (1,644,798) |
Weighted average number of shares in issue | shares | 26,681,774 | 26,428,269 | 23,293,237 |
Basic and diluted loss per share | SFr / shares | SFr (0.48) | SFr (0.56) | SFr (0.07) |
Number of categories of dilutive potential shares | item | 3 | 3 | 3 |
Number of potential dilutive instruments | 13,034,108 | 11,906,248 | 11,561,178 |
ESCs | |||
Earnings per share | |||
Number of potential dilutive instruments | 198,750 | 198,750 | 265,600 |
ESOP | |||
Earnings per share | |||
Number of potential dilutive instruments | 6,768,460 | 5,540,600 | 5,128,680 |
Warrants | |||
Earnings per share | |||
Number of potential dilutive instruments | 5,866,898 | 5,866,898 | 5,866,898 |
Commitments and contingencies -
Commitments and contingencies - Capital commitments and contingencies (Details) - CHF (SFr) | Dec. 31, 2020 | Dec. 31, 2019 |
Commitments and contingencies | ||
Contracted capital expenditure | SFr 0 | SFr 0 |
Outstanding litigation | SFr 0 |
Related party transactions (Det
Related party transactions (Details) - CHF (SFr) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related party transactions | |||
Salaries, other short?term employee benefits and post-employment benefits | SFr 1,314,723 | SFr 1,156,427 | SFr 522,163 |
Consulting fees | 317,425 | 364,535 | 577,078 |
Share?based compensation | 975,579 | 1,434,190 | 2,019,430 |
Key management compensation | 2,607,727 | 2,955,152 | SFr 3,118,671 |
Board of Directors and Executive Management | |||
Related party transactions | |||
Net payable | SFr 145,443 | SFr 176,089 |
Events after the balance shee_2
Events after the balance sheet date (Details) SFr / shares in Units, $ in Millions | Jan. 08, 2021USD ($)shares | Jan. 08, 2021CHF (SFr)SFr / sharesshares | Jan. 07, 2021CHF (SFr) | Dec. 31, 2020CHF (SFr)SFr / shares | Dec. 31, 2019CHF (SFr)SFr / shares |
Disclosure of non-adjusting events after reporting period [line items] | |||||
Nominal value | SFr 1 | SFr 1 | |||
Share capital | SFr | SFr 32,848,635 | SFr 32,848,635 | |||
Major ordinary share transaction | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Shares issued | shares | 6,900,000 | 6,900,000 | |||
Nominal value | SFr 1 | ||||
Issue price | SFr 1.46367 | ||||
Share capital | SFr | SFr 39,748,635 | SFr 32,848,635 | |||
Gross proceeds | $ 11.5 | SFr 10,100,000 | |||
Major ordinary share transaction | American Depositary Shares | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Shares issued | shares | 6,750,000 | 6,750,000 |