Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2023 | |
Document Information Line Items | |
Entity Registrant Name | InflaRx N.V. |
Document Type | 6-K |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
Entity Central Index Key | 0001708688 |
Document Period End Date | Jun. 30, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q2 |
Entity Address, Address Line One | Winzerlaer Str. 2 |
Entity Address, Postal Zip Code | 07745 |
Entity Address, City or Town | Jena |
Entity Address, Country | DE |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss - EUR (€) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Unaudited Condensed Consolidated Statements Of Operations And Comprehensive Loss Abstract | ||||
Research and development expenses | € (10,919,595) | € (11,180,958) | € (25,651,503) | € (21,652,881) |
General and administrative expenses | (3,540,805) | (4,346,965) | (7,149,359) | (8,734,408) |
Sales and marketing expenses | (276,051) | (276,051) | ||
Other income | 4,882,908 | 14,441,541 | 12,629,096 | 14,443,135 |
Other expenses | (2,624) | (279) | (3,190) | (844) |
Operating Result | (9,856,168) | (1,086,661) | (20,451,007) | (15,944,999) |
Finance income | 1,087,011 | 82,401 | 1,543,047 | 110,362 |
Finance expenses | (5,052) | (7,945) | (10,580) | (32,531) |
Foreign exchange result | 767,646 | 1,563,580 | (369,664) | 2,291,513 |
Other financial result | (195,567) | (86,000) | 2,241 | 39,000 |
Income Taxes | ||||
Income (Loss) for the Period | € (8,202,130) | € 465,376 | € (19,285,963) | € (13,536,654) |
Share Information | ||||
Weighted average number of shares outstanding (in Shares) | 56,985,734 | 44,203,763 | 50,912,459 | 44,203,763 |
Income (Loss) per share (basic) (in Euro per share) | € (0.14) | € 0.01 | € (0.38) | € (0.31) |
Other comprehensive income (loss) that may be reclassified to profit or loss in subsequent periods: | ||||
Exchange differences on translation of foreign currency | € (330) | € 4,408,940 | € (17,116) | € 5,718,815 |
Total Comprehensive Income (Loss) | € (8,202,460) | € 4,874,316 | € (19,303,079) | € (7,817,839) |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss (Parentheticals) - € / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Unaudited Condensed Consolidated Statements Of Operations And Comprehensive Loss Abstract | ||||
Income (Loss) per share (diluted) | € (0.14) | € 0.01 | € (0.38) | € (0.31) |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Financial Position - EUR (€) | Jun. 30, 2023 | Dec. 31, 2022 |
Non-current assets | ||
Property and equipment | € 296,382 | € 328,920 |
Right-of-use assets | 1,122,183 | 1,311,809 |
Intangible assets | 90,789 | 138,905 |
Other assets | 283,784 | 308,066 |
Financial assets | 18,951,267 | 2,900,902 |
Total non-current assets | 20,744,405 | 4,988,602 |
Current assets | ||
Inventories | 578,705 | |
Current other assets | 6,405,867 | 14,170,510 |
Current tax assets | 2,925,037 | 1,432,087 |
Financial assets from government grants | 5,193,246 | 732,971 |
Other financial assets | 77,601,286 | 64,810,135 |
Cash and cash equivalents | 19,515,959 | 16,265,355 |
Total current assets | 112,220,100 | 97,411,058 |
TOTAL ASSETS | 132,964,505 | 102,399,660 |
Equity | ||
Issued capital | 7,065,993 | 5,364,452 |
Share premium | 334,211,338 | 282,552,633 |
Other capital reserves | 38,874,961 | 36,635,564 |
Accumulated deficit | (262,746,253) | (243,460,290) |
Other components of equity | 7,239,965 | 7,257,081 |
Total equity | 124,646,004 | 88,349,440 |
Non-current liabilities | ||
Lease liabilities | 814,560 | 987,307 |
Other liabilities | 36,877 | 36,877 |
Total non-current liabilities | 851,437 | 1,024,184 |
Current liabilities | ||
Trade and other payables | 5,200,809 | 4,987,538 |
Liabilities from government grants | 801,632 | 6,209,266 |
Lease liabilities | 356,099 | 369,376 |
Employee benefits | 900,474 | 1,312,248 |
Other liabilities | 208,051 | 147,608 |
Total current liabilities | 7,467,065 | 13,026,036 |
Total Liabilities | 8,318,502 | 14,050,220 |
TOTAL EQUITY AND LIABILITIES | € 132,964,505 | € 102,399,660 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Changes in Shareholders’ Equity - EUR (€) | Shares outstanding | Issued capital | Share premium | Other capital reserves | Accumulated deficit | Other components of equity | Total | |
Balance at Dec. 31, 2021 | € 5,304,452 | € 280,310,744 | € 30,591,209 | € (213,975,679) | € 3,050,271 | € 105,280,996 | ||
Balance (in Shares) at Dec. 31, 2021 | 44,203,763 | |||||||
Loss for the period | (13,536,654) | (13,536,654) | ||||||
Exchange differences on translation of foreign currency | 5,718,815 | 5,718,815 | ||||||
Total comprehensive loss | (13,536,654) | 5,718,815 | (7,817,839) | |||||
Equity-settled share-based payments | 4,668,481 | 4,668,481 | ||||||
Balance at Jun. 30, 2022 | [1] | 5,304,452 | 280,310,744 | 35,259,689 | (227,512,333) | 8,769,086 | 102,131,638 | |
Balance (in Shares) at Jun. 30, 2022 | [1] | 44,203,763 | ||||||
Balance at Dec. 31, 2022 | 5,364,452 | 282,552,633 | 36,635,564 | (243,460,290) | 7,257,081 | 88,349,440 | ||
Balance (in Shares) at Dec. 31, 2022 | 44,703,763 | |||||||
Loss for the period | (19,285,963) | (19,285,963) | ||||||
Exchange differences on translation of foreign currency | (17,116) | (17,116) | ||||||
Total comprehensive loss | (19,285,963) | (17,116) | (19,303,079) | |||||
Issuance of common shares | 1,687,110 | 54,796,819 | 56,483,929 | |||||
Issuance of common shares (in Shares) | 14,059,252 | |||||||
Transaction costs | (3,360,626) | (3,360,626) | ||||||
Equity-settled share-based payments | 2,239,397 | 2,239,397 | ||||||
Share options exercised | 14,431 | 222,512 | 236,943 | |||||
Share options exercised (in Shares) | 120,257 | |||||||
Balance at Jun. 30, 2023 | [1] | € 7,065,993 | € 334,211,338 | € 38,874,961 | € (262,746,253) | € 7,239,965 | € 124,646,004 | |
Balance (in Shares) at Jun. 30, 2023 | [1] | 58,883,272 | ||||||
[1] unaudited |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Cash Flows - EUR (€) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Operating activities | ||
Loss for the period | € (19,285,963) | € (13,536,654) |
Adjustments for: | ||
Depreciation & amortization of property and equipment, right-of-use assets and intangible assets | 293,328 | 300,870 |
Net finance income | (1,165,044) | (2,408,345) |
Share-based payment expense | 2,239,397 | 4,668,481 |
Net foreign exchange differences | (23,953) | 130,347 |
Changes in: | ||
Financial assets from government grants | (4,460,274) | (8,260,503) |
Other assets | 6,295,975 | 611,843 |
Employee benefits | (411,774) | (640,112) |
Other liabilities | 60,443 | (7,869) |
Liabilities from government grants received | (5,407,634) | (6,154,865) |
Trade and other payables | 213,270 | (661,741) |
Inventories | (578,705) | |
Interest received | 556,068 | 631,504 |
Interest paid | (10,777) | (32,039) |
Net cash used in operating activities | (21,685,642) | (25,359,081) |
Investing activities | ||
Purchase of intangible assets, property and equipment | (24,673) | (9,728) |
Purchase of current financial assets | (83,071,163) | (47,031,216) |
Proceeds from the maturity of financial assets | 55,202,491 | 59,595,044 |
Net cash from/(used in) investing activities | (27,893,346) | 12,554,101 |
Financing activities | ||
Proceeds from issuance of common shares | 56,483,929 | |
Transaction costs from issuance of common shares | (3,360,626) | |
Proceeds from exercise of share options | 236,943 | |
Repayment of lease liabilities | (184,791) | (182,014) |
Net cash from/(used in) financing activities | 53,175,455 | (182,014) |
Net increase/(decrease) in cash and cash equivalents | 3,596,467 | (12,986,995) |
Effect of exchange rate changes on cash and cash equivalents | (345,862) | 2,153,152 |
Cash and cash equivalents at beginning of period | 16,265,355 | 26,249,995 |
Cash and cash equivalents at end of period | € 19,515,959 | € 15,416,152 |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Other Disclosures | 6 Months Ended |
Jun. 30, 2023 | |
Summary of Significant Accounting Policies and Other Disclosures | |
Summary of significant accounting policies and other disclosures | 1. Summary of significant accounting policies and other disclosures a) Reporting entity and the Group’s structure InflaRx N.V. (the “Company” or “InflaRx”) is a Dutch public company with limited liability ( naamloze vennootschap InflaRx is a biopharmaceutical company focused on applying its proprietary anti-C5a and C5aR technologies to discover, develop and commercialize first-in-class, potent and specific inhibitors of the complement activation factor known as C5a. On April 4, 2023, the US Food and Drug Administration (FDA) issued an Emergency Use Authorization (EUA) for the emergency use of the Company’s monoclonal anti-C5a antibody vilobelimab, under the brand name Gohibic, for the treatment of COVID-19 in hospitalized adults. These consolidated financial statements of InflaRx comprise the Company and its wholly-owned subsidiaries, InflaRx GmbH, Jena, Germany, and InflaRx Pharmaceuticals Inc., Ann Arbor, Michigan, United States (together referred to as the “Group”). b) Basis of preparation These interim condensed consolidated financial statements for the three- and six-month reporting periods ended June 30, 2023, and 2022 have been prepared in accordance with IAS 34 Interim Financial Reporting. These condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements. Accordingly, this report is to be read in conjunction with the financial statements in our annual report for the year ended December 31, 2022 on form 20-F. The interim condensed consolidated financial statements were authorized for issue by the board of directors of the Company (the “Board of Directors”) on August 9, 2023. The financial statements are presented in euros (€). The euro is the functional currency of InflaRx N.V. and InflaRx GmbH. The functional currency of InflaRx Pharmaceuticals Inc. is the U.S. dollar. Effective January 1, 2023, the functional currency of InflaRx N.V. changed from the U.S. dollar to the euro due to a change in the Company’s operational function and, in turn, a change in the primary currency of its underlying transactions. This change in functional currency has been accounted for prospectively. All financial information presented in euros have been rounded. Accordingly, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that precede them or may deviate from other tables. The accounting policies adopted are consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year ended December 31, 2022, except for the adoption of new standards effective as of January 1, 2023, as set out below. The Group has not adopted any other standard, interpretation or amendment that has been issued but is not yet effective early. The following IFRS standards have been applied starting in Q2 2023 for the first time ever, as no transactions in the scope of these IFRS standards had been previously recognized and are not expected to have a significant impact on the Company’s consolidated financial statements in future periods. ● IAS 2 Inventories According to IAS 2, inventories are stated at the lower amount of cost or their net realizable value. Cost comprises direct materials and, where applicable, direct labor costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Cost is calculated using the weighted average cost method. Net realizable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. ● IFRS 15 Revenue from contracts with customers Revenue will be recognized when a performance obligation has been satisfied through the transfer of a promised good or service to a customer. An asset is transferred when the customer obtains control of that asset. Revenue will be recognized at the point in time that the control of the products is transferred to the customer and measured considering return liabilities. As of June 30, 2023, no revenue has been recognized. The following amendments were adopted effective January 1, 2023, and do not have a material impact on the consolidated financial statements of the Group: ● IFRS 17 Insurance Contracts ● Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates ● Amendments to IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction ● Amendments to IAS 1 and IFRS Practice Statement 2 - Disclosure of Accounting Policies - The following standards issued will be adopted in a future period, and the potential impact, if any, they will have on the Group’s consolidated financial statements is being assessed: ● Amendments to IFRS 16 Leases: Leases on Sale and Leaseback ● Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants |
Other Income
Other Income | 6 Months Ended |
Jun. 30, 2023 | |
Other Income | |
Other income | 2. Other income For the three months ended June 30, For the six months 2023 2022 2023 2022 (in €) Other income Income from government grants 4,874,934 14,415,368 12,609,789 14,415,368 Other 7,974 26,173 19,307 27,767 Total 4,882,908 14,441,541 12,629,096 14,443,135 Other income for the three months ended June 30, 2023 amounted to €4.9 million (PY: €14.4 million) and for the six months ended June 30, 2023 amounted to €12.6 million (PY: €14.4 million), which is primarily attributable to income recognized from grant payments received from the German federal government for the development of vilobelimab as treatment for critically ill COVID patients, including expenses related to clinical development and manufacturing process development. The decrease in income from government grants is primarily due to a non-recurring catch-up effect of costs incurred in preceding periods for which income recognition was deferred until the three months ended June 30, 2022 when the recognition criteria were met. |
Net Financial Result
Net Financial Result | 6 Months Ended |
Jun. 30, 2023 | |
Net Financial Result | |
Net financial result | 3. Net financial result The net financial result comprises the following items for the three- and six-months ended June 30, 2023 and 2022, respectively: For the three months For the six months 2023 2022 2023 2022 (in €) Financial income Interest income 1,087,011 82,401 1,543,047 110,362 Financial expenses Interest expenses (363 ) (2,243 ) (782 ) (22,102 ) Interest on lease liabilities (4,689 ) (5,702 ) (9,798 ) (10,429 ) Total 1,081,959 74,456 1,532,467 77,831 Interest income is derived from marketable securities and short-term deposits held by the Company and its subsidiary InflaRx GmbH: For the three months For the six months 2023 2022 2023 2022 (in €) Foreign exchange result Foreign exchange income 2,090,994 2,947,221 2,381,519 4,057,629 Foreign exchange expense (1,323,348 ) (1,383,641 ) (2,751,183 ) (1,766,116 ) Total 767,646 1,563,580 (369,664 ) 2,291,513 Foreign exchange income and expense is mainly derived from the translation of the U.S. Dollar cash, cash equivalents and securities held by InflaRx GmbH and InflaRx N.V. For the three months For the six months 2023 2022 2023 2022 (in €) Other financial result (195,567 ) (86,000 ) 2,241 39,000 Other financial result is attributable to the expected credit loss allowance, which is deducted from the Company’s current and non-current financial assets. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2023 | |
Inventories | |
Inventories | 4. Inventories As of As of (in €) Raw materials and supplies 337,407 — Unfinished goods 132,624 — Finished goods 108,674 — Total 578,705 — The Company valued inventories at manufacturing cost in its consolidated statements of financial position as of June 30, 2023. Inventories do not include costs relating to production of products before the granting of the EUA for Gohibic (vilobelimab), since those were expensed in previous reporting periods as research and development expenses in the period incurred. During the three and the six months ended June 30, 2023, there were no write-downs of inventories. |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2023 | |
Other Assets | |
Other assets | 5. Other assets As of As of (in €) Non-current other assets Prepaid expenses 283,784 308,066 Total 283,784 308,066 Current other assets Prepayments on research & development projects 4,757,771 9,776,505 Prepaid expense 1,146,674 1,841,935 Others 501,422 2,552,071 Total 6,405,867 14,170,511 Total other assets 6,689,651 14,478,577 As of June 30, 2023, prepayments on research & development projects amounted to €4.8 million compared to €9.8 million as of December 31, 2022, and consist of prepayments on clinical and R&D material production contracts. The decrease in prepayments results from manufacturing development activities, which were partly completed in the six months ended June 30, 2023. Prepaid expenses mainly consist of prepaid insurance expense. The reduction of the amounts in the category “others” primarily relate to credit notes issued to the Company by CROs, which were still outstanding as of December 31, 2022 and were paid in 2023. |
Financial Assets and Financial
Financial Assets and Financial Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Financial Assets and Financial Liabilities | |
Financial assets and financial liabilities | 6. Financial assets and financial liabilities Set out below is an overview of financial assets and liabilities, other than cash and cash equivalents, held by the Group as of June 30, 2023 and December 31, 2022: As of As of (in €) Financial assets at amortized cost Non-current financial assets 18,951,267 2,900,902 Financial assets from government grants 5,193,245 732,971 Other current financial assets 77,601,286 64,791,088 Financial liabilities at amortized cost Liabilities from government grants 801,632 6,209,266 Trade and other payables 5,200,809 4,987,538 As of June 30, 2023, the fair value of current and non-current financial assets (primarily quoted debt securities) amounted to €100.7 million (Level 1). The Group’s debt instruments at amortized cost consist solely of quoted securities that are graded highly by credit rating agencies such as S&P Global and, therefore, are considered low credit risk investments. As of June 30, 2023, liabilities from government grants amounted to €0.8 million. Liabilities from government grants partly comprise funds received for advance payments to third parties. If goods or services from such third parties have not been received, corresponding amounts are not recognized as other income. The Company’s right to retain these funds is contingent on meeting all grant conditions. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 6 Months Ended |
Jun. 30, 2023 | |
Cash and cash equivalents | |
Cash and cash equivalents | 7. Cash and cash equivalents As of As of (in €) Short-term deposits Deposits held in U.S. dollars 7,825,926 3,422 Deposits held in euros 6,100,000 — Total 13,925,926 3,422 Cash at banks Cash held in U.S. dollars 3,340,889 8,645,014 Cash held in euros 2,249,144 7,616,918 Total 5,590,033 16,261,932 Total cash and cash equivalents 19,515,959 16,265,354 |
Equity
Equity | 6 Months Ended |
Jun. 30, 2023 | |
Equity | |
Equity | 8. Equity In April 2023, the Company issued 3,235,723 ordinary shares under its ATM program resulting in $15.7 million (or €14.4 million) in net proceeds. The existing ATM program expired in July 2023 and no more shares are issuable under this program. Through an underwritten public offering in April 2023, the Company sold and issued an aggregate of 10,823,529 ordinary shares, of which 1,411,764 were sold pursuant to the exercise of an overallotment option by the underwriters. The ordinary shares were sold at a price of $4.25 per share and have a nominal value of €0.12 per share. Proceeds of this offering after deducting €2.5 million ($2.8 million) in underwriting discounts amounted to €39.1 million ($43.2 million). Other offering expenses amounted to €0.4 million, resulting in a total of €38.7 million in net proceeds from this offering. |
Share-Based Payments
Share-Based Payments | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payments | |
Share-based payments | 9. Share-based payments a) Equity settled share-based payment arrangements Prior to 2016, InflaRx GmbH granted options under the 2012 Stock Option Plan. Those InflaRx GmbH options were converted into options for ordinary shares of InflaRx N.V. at the time of its IPO in November 2017: Number of share options 2023 2022 Outstanding as of January 1, 148,433 148,433 Exercised during the six months ended June 30 — — Outstanding as of June 30, 148,433 148,433 thereof vested 148,433 148,433 Under the terms and conditions of the share option plan 2016, InflaRx GmbH granted rights to subscribe for InflaRx GmbH’s ordinary shares to directors, senior management, and key employees. Those InflaRx GmbH options were converted into options for ordinary shares of InflaRx N.V. at the time of its IPO in November 2017: Number of share options 2023 2022 Outstanding as of January 1, 888,632 888,632 Exercised during the six months ended June 30 — — Outstanding as of June 30, 888,632 888,632 thereof vested 888,632 888,632 InflaRx also granted share options under the 2017 LTIP subsequently to its IPO in November 2017. The total number of share options granted during the six months ended June 30, 2023 under the 2017 LTIP was as follows: Number of share options 2023 2022 Total number of options outstanding as of January 1, 4,985,523 3,170,046 Granted during the six months ended June 30, 1,567,250 1,561,666 Exercised during the six months ended June 30, 105,327 — Forfeited during the six months ended June 30, — (117,259 ) Outstanding as of June 30, 6,447,446 4,614,453 thereof vested 4,788,759 3,306,162 The number of share options granted during the six months ended June 30, 2023 under the 2017 LTIP was as follows: Share options granted 2023 Number Fair value per option FX rate as of grant date Fair value per option Share price at grant date / Exercise price Expected volatility Expected life (midpoint based) Risk-free rate (interpolated, U.S. sovereign strips curve) January 24 1,454,250 $ 2.11 0.9008 € 1.90 $ 2.37 1.35 5.30 3.571 % January 24 52,500 $ 2.13 0.9008 € 1.92 $ 2.37 1.35 5.50 3.565 % May 31 60,500 $ 3,61 0.9203 € 3.32 $ 4.19 1.35 4.50 3.820 % 1,567,250 Of the 1,567,250 options granted in the six months ended June 30, 2023 (ended June 30, 2022: 1,561,666), 1,246,000 options (June 30, 2022: 1,362,500) were granted to members of the executive management or Board of Directors. Expected dividends are nil for all share options listed above. b) Share-based payment expense recognized For the six months ended June 30, 2023, the Company has recognized €2.2 million (ended June 30, 2022: €4.7 million) of share-based payment expense/(benefit) in the statements of operations and comprehensive loss. None of the share-based payment awards were dilutive in determining earnings per share due to the Group’s loss position. c) Share options exercised During the six months ended June 30, 2023, 105,327 shares (ended June 30, 2022: 0) were issued upon the exercise of share options, resulting in proceeds to the Company in the amount of €98 thousand (ended June 30, 2022: 0). All share options exercised during the six months ended June 30, 2023 were granted under the 2017 LTIP. |
Protective Foundation
Protective Foundation | 6 Months Ended |
Jun. 30, 2023 | |
Protective Foundation | |
Protective foundation | 10. Protective foundation According to the Articles of Association of the Company, up to 110,000,000 ordinary shares and up to 110,000,000 preferred shares with a nominal value of €0.12 per share are authorized to be issued. All shares are registered shares. No share certificates shall be issued. In order to deter acquisition bids, the Company`s shareholders approved the right of an independent foundation under Dutch law, or protective foundation, to exercise a call option on preferred shares. Pursuant to the call option agreement, the Company shall issue an amount of preferred shares to the protective foundation, amounting to up to 100% of the Company’s issued capital held by others than the protective foundation, minus one share. In order to exercise its right to such share issue, the protective foundation is expected to enter into a finance arrangement with a bank, or subject to applicable restrictions under Dutch law, the protective foundation may request the Company to provide, or cause the Company’s subsidiaries to provide, sufficient funding to the protective foundation to enable it to satisfy its payment obligation under the call option agreement. These preferred shares will have both a liquidation and dividend preference over the Company`s ordinary shares and will accrue cash dividends at a pre-determined rate. The protective foundation would be expected to require us to cancel its preferred shares once the perceived threat to the Company and its stakeholders has been removed or sufficiently mitigated or neutralized. We believe that the call option does not represent a significant fair value based on a Level 3 valuation, since the preference shares are restricted in use and can be canceled by us. During the six months ended June 30, 2023, the Company expensed €45 thousand (2022: €30 thousand) of ongoing costs to reimburse expenses incurred by the protective foundation. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events | |
Subsequent events | 11. Subsequent events Effective July 1, 2023, Dr. Camilla Chong was appointed the Company’s Chief Medical Officer. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Reporting entity and the Group’s structure | a) Reporting entity and the Group’s structure InflaRx N.V. (the “Company” or “InflaRx”) is a Dutch public company with limited liability ( naamloze vennootschap InflaRx is a biopharmaceutical company focused on applying its proprietary anti-C5a and C5aR technologies to discover, develop and commercialize first-in-class, potent and specific inhibitors of the complement activation factor known as C5a. On April 4, 2023, the US Food and Drug Administration (FDA) issued an Emergency Use Authorization (EUA) for the emergency use of the Company’s monoclonal anti-C5a antibody vilobelimab, under the brand name Gohibic, for the treatment of COVID-19 in hospitalized adults. These consolidated financial statements of InflaRx comprise the Company and its wholly-owned subsidiaries, InflaRx GmbH, Jena, Germany, and InflaRx Pharmaceuticals Inc., Ann Arbor, Michigan, United States (together referred to as the “Group”). |
Basis of preparation | b) Basis of preparation These interim condensed consolidated financial statements for the three- and six-month reporting periods ended June 30, 2023, and 2022 have been prepared in accordance with IAS 34 Interim Financial Reporting. These condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements. Accordingly, this report is to be read in conjunction with the financial statements in our annual report for the year ended December 31, 2022 on form 20-F. The interim condensed consolidated financial statements were authorized for issue by the board of directors of the Company (the “Board of Directors”) on August 9, 2023. The financial statements are presented in euros (€). The euro is the functional currency of InflaRx N.V. and InflaRx GmbH. The functional currency of InflaRx Pharmaceuticals Inc. is the U.S. dollar. Effective January 1, 2023, the functional currency of InflaRx N.V. changed from the U.S. dollar to the euro due to a change in the Company’s operational function and, in turn, a change in the primary currency of its underlying transactions. This change in functional currency has been accounted for prospectively. All financial information presented in euros have been rounded. Accordingly, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that precede them or may deviate from other tables. The accounting policies adopted are consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year ended December 31, 2022, except for the adoption of new standards effective as of January 1, 2023, as set out below. The Group has not adopted any other standard, interpretation or amendment that has been issued but is not yet effective early. The following IFRS standards have been applied starting in Q2 2023 for the first time ever, as no transactions in the scope of these IFRS standards had been previously recognized and are not expected to have a significant impact on the Company’s consolidated financial statements in future periods. ● IAS 2 Inventories According to IAS 2, inventories are stated at the lower amount of cost or their net realizable value. Cost comprises direct materials and, where applicable, direct labor costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Cost is calculated using the weighted average cost method. Net realizable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. ● IFRS 15 Revenue from contracts with customers Revenue will be recognized when a performance obligation has been satisfied through the transfer of a promised good or service to a customer. An asset is transferred when the customer obtains control of that asset. Revenue will be recognized at the point in time that the control of the products is transferred to the customer and measured considering return liabilities. As of June 30, 2023, no revenue has been recognized. The following amendments were adopted effective January 1, 2023, and do not have a material impact on the consolidated financial statements of the Group: ● IFRS 17 Insurance Contracts ● Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates ● Amendments to IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction ● Amendments to IAS 1 and IFRS Practice Statement 2 - Disclosure of Accounting Policies - The following standards issued will be adopted in a future period, and the potential impact, if any, they will have on the Group’s consolidated financial statements is being assessed: ● Amendments to IFRS 16 Leases: Leases on Sale and Leaseback ● Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants |
Other Income (Tables)
Other Income (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Other income [Abstract] | |
Schedule of Other Income | Other income For the three months ended June 30, For the six months 2023 2022 2023 2022 (in €) Other income Income from government grants 4,874,934 14,415,368 12,609,789 14,415,368 Other 7,974 26,173 19,307 27,767 Total 4,882,908 14,441,541 12,629,096 14,443,135 |
Net Financial Result (Tables)
Net Financial Result (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Net Financial Result | |
Schedule of Net financial result | The net financial result comprises the following items for the three- and six-months ended June 30, 2023 and 2022, respectively: For the three months For the six months 2023 2022 2023 2022 (in €) Financial income Interest income 1,087,011 82,401 1,543,047 110,362 Financial expenses Interest expenses (363 ) (2,243 ) (782 ) (22,102 ) Interest on lease liabilities (4,689 ) (5,702 ) (9,798 ) (10,429 ) Total 1,081,959 74,456 1,532,467 77,831 |
Schedule of Interest Income is Derived from Marketable Securities and Short-Term Deposits | Interest income is derived from marketable securities and short-term deposits held by the Company and its subsidiary InflaRx GmbH: For the three months For the six months 2023 2022 2023 2022 (in €) Foreign exchange result Foreign exchange income 2,090,994 2,947,221 2,381,519 4,057,629 Foreign exchange expense (1,323,348 ) (1,383,641 ) (2,751,183 ) (1,766,116 ) Total 767,646 1,563,580 (369,664 ) 2,291,513 |
Schedule of Foreign Exchange Income and Expense | Foreign exchange income and expense is mainly derived from the translation of the U.S. Dollar cash, cash equivalents and securities held by InflaRx GmbH and InflaRx N.V. For the three months For the six months 2023 2022 2023 2022 (in €) Other financial result (195,567 ) (86,000 ) 2,241 39,000 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Inventories | |
Schedule Inventories | Inventories As of As of (in €) Raw materials and supplies 337,407 — Unfinished goods 132,624 — Finished goods 108,674 — Total 578,705 — |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Other Assets | |
Schedule Other Assets | Other assets As of As of (in €) Non-current other assets Prepaid expenses 283,784 308,066 Total 283,784 308,066 Current other assets Prepayments on research & development projects 4,757,771 9,776,505 Prepaid expense 1,146,674 1,841,935 Others 501,422 2,552,071 Total 6,405,867 14,170,511 Total other assets 6,689,651 14,478,577 |
Financial Assets and Financia_2
Financial Assets and Financial Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Financial Assets and Financial Liabilities | |
Schedule of Financial Assets and liabilities | Set out below is an overview of financial assets and liabilities, other than cash and cash equivalents, held by the Group as of June 30, 2023 and December 31, 2022: As of As of (in €) Financial assets at amortized cost Non-current financial assets 18,951,267 2,900,902 Financial assets from government grants 5,193,245 732,971 Other current financial assets 77,601,286 64,791,088 Financial liabilities at amortized cost Liabilities from government grants 801,632 6,209,266 Trade and other payables 5,200,809 4,987,538 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Cash and cash equivalents | |
Schedule of Cash and Cash Equivalents | As of As of (in €) Short-term deposits Deposits held in U.S. dollars 7,825,926 3,422 Deposits held in euros 6,100,000 — Total 13,925,926 3,422 Cash at banks Cash held in U.S. dollars 3,340,889 8,645,014 Cash held in euros 2,249,144 7,616,918 Total 5,590,033 16,261,932 Total cash and cash equivalents 19,515,959 16,265,354 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payments | |
Schedule of Stock Option Activity | Prior to 2016, InflaRx GmbH granted options under the 2012 Stock Option Plan. Those InflaRx GmbH options were converted into options for ordinary shares of InflaRx N.V. at the time of its IPO in November 2017 Number of share options 2023 2022 Outstanding as of January 1, 148,433 148,433 Exercised during the six months ended June 30 — — Outstanding as of June 30, 148,433 148,433 thereof vested 148,433 148,433 Number of share options 2023 2022 Outstanding as of January 1, 888,632 888,632 Exercised during the six months ended June 30 — — Outstanding as of June 30, 888,632 888,632 thereof vested 888,632 888,632 Number of share options 2023 2022 Total number of options outstanding as of January 1, 4,985,523 3,170,046 Granted during the six months ended June 30, 1,567,250 1,561,666 Exercised during the six months ended June 30, 105,327 — Forfeited during the six months ended June 30, — (117,259 ) Outstanding as of June 30, 6,447,446 4,614,453 thereof vested 4,788,759 3,306,162 |
Schedule of Fair Value of Options Granted | The number of share options granted during the six months ended June 30, 2023 under the 2017 LTIP was as follows Share options granted 2023 Number Fair value per option FX rate as of grant date Fair value per option Share price at grant date / Exercise price Expected volatility Expected life (midpoint based) Risk-free rate (interpolated, U.S. sovereign strips curve) January 24 1,454,250 $ 2.11 0.9008 € 1.90 $ 2.37 1.35 5.30 3.571 % January 24 52,500 $ 2.13 0.9008 € 1.92 $ 2.37 1.35 5.50 3.565 % May 31 60,500 $ 3,61 0.9203 € 3.32 $ 4.19 1.35 4.50 3.820 % 1,567,250 |
Other Income (Details)
Other Income (Details) - EUR (€) € in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Other Income | ||||
Other income | € 4.9 | € 14.4 | € 12.6 | € 14.4 |
Other Income (Details) - Schedu
Other Income (Details) - Schedule of Other Income - EUR (€) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Other income | ||||
Income from government grants | € 4,874,934 | € 14,415,368 | € 12,609,789 | € 14,415,368 |
Other | 7,974 | 26,173 | 19,307 | 27,767 |
Total | € 4,882,908 | € 14,441,541 | € 12,629,096 | € 14,443,135 |
Net Financial Result (Details)
Net Financial Result (Details) - Schedule of Net Financial Result - EUR (€) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Financial income | ||||
Interest income | € 1,087,011 | € 82,401 | € 1,543,047 | € 110,362 |
Financial expenses | ||||
Interest expenses | (363) | (2,243) | (782) | (22,102) |
Interest on lease liabilities | (4,689) | (5,702) | (9,798) | (10,429) |
Total | € 1,081,959 | € 74,456 | € 1,532,467 | € 77,831 |
Net Financial Result (Details_2
Net Financial Result (Details) - Schedule of Interest Income is Derived from Marketable Securities and Short-Term Deposits - EUR (€) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Foreign exchange result | ||||
Foreign exchange income | € 2,090,994 | € 2,947,221 | € 2,381,519 | € 4,057,629 |
Foreign exchange expense | (1,323,348) | (1,383,641) | (2,751,183) | (1,766,116) |
Total | € 767,646 | € 1,563,580 | € (369,664) | € 2,291,513 |
Net Financial Result (Details_3
Net Financial Result (Details) - Schedule of Foreign Exchange Income and Expense - EUR (€) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net Financial Result [Abstract] | ||||
Other financial result | € (195,567) | € (86,000) | € 2,241 | € 39,000 |
Inventories (Details)
Inventories (Details) - EUR (€) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Inventories | ||
Write-downs of inventories | € 0 | € 0 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule Inventories - EUR (€) | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule of Inventories [Abstract] | ||
Raw materials and supplies | € 337,407 | |
Unfinished goods | 132,624 | |
Finished goods | 108,674 | |
Total | € 578,705 |
Other Assets (Details)
Other Assets (Details) - EUR (€) € in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Other Assets | ||
Prepayments on research and development | € 4.8 | € 9.8 |
Other Assets (Details) - Schedu
Other Assets (Details) - Schedule of Other Assets - EUR (€) | Jun. 30, 2023 | Dec. 31, 2022 |
Non-current other assets | ||
Prepaid expenses | € 283,784 | € 308,066 |
Total | 283,784 | 308,066 |
Current other assets | ||
Prepayments on research & development projects | 4,757,771 | 9,776,505 |
Prepaid expense | 1,146,674 | 1,841,935 |
Others | 501,422 | 2,552,071 |
Total | 6,405,867 | 14,170,511 |
Total other assets | € 6,689,651 | € 14,478,577 |
Financial Assets and Financia_3
Financial Assets and Financial Liabilities (Details) € in Millions | Jun. 30, 2023 EUR (€) |
Financial Assets and Financial Liabilities | |
Fair value of current and non-current financial assets | € 100.7 |
Assets from government grants | € 0.8 |
Financial Assets and Financia_4
Financial Assets and Financial Liabilities (Details) - Schedule of Financial Assets and liabilities - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Financial assets at amortized cost | ||
Non-current financial assets | $ 18,951,267 | $ 2,900,902 |
Financial assets from government grants | 5,193,245 | 732,971 |
Other current financial assets | 77,601,286 | 64,791,088 |
Financial liabilities at amortized cost | ||
Liabilities from government grants | 801,632 | 6,209,266 |
Trade and other payables | $ 5,200,809 | $ 4,987,538 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - Schedule of Cash and Cash Equivalents - EUR (€) | Jun. 30, 2023 | Dec. 31, 2022 |
Short-term deposits | ||
Short-term deposits total | € 13,925,926 | € 3,422 |
Cash at banks | ||
Cash at banks total | 5,590,033 | 16,261,932 |
Total cash and cash equivalents | 19,515,959 | 16,265,354 |
Deposits Held in U.S. Dollars [Member] | ||
Short-term deposits | ||
Short-term deposits total | 7,825,926 | 3,422 |
Cash at banks | ||
Cash at banks total | 3,340,889 | 8,645,014 |
Deposits Held in Euros [Member] | ||
Short-term deposits | ||
Short-term deposits total | 6,100,000 | |
Cash at banks | ||
Cash at banks total | € 2,249,144 | € 7,616,918 |
Equity (Details)
Equity (Details) € / shares in Units, $ / shares in Units, $ in Millions | 1 Months Ended | ||||
Apr. 30, 2023 EUR (€) € / shares shares | Apr. 30, 2023 USD ($) shares | Jun. 30, 2023 EUR (€) | Apr. 30, 2023 USD ($) $ / shares shares | Dec. 31, 2022 EUR (€) | |
Equity (Details) [Line Items] | |||||
Sale of common shares (in Shares) | shares | 3,235,723 | 3,235,723 | |||
Equity amount (in Dollars) | € 124,646,004 | € 88,349,440 | |||
Net proceeds from equity investments | € 14,400,000 | ||||
Sold common shares through a public offering (in Shares) | shares | 10,823,529 | 10,823,529 | |||
Share based payment transactions (in Shares) | shares | 1,411,764 | 1,411,764 | |||
Price per share (in Dollars per share) | $ / shares | $ 4.25 | ||||
Nominal value of price per share (in Euro per share) | € / shares | € 0.12 | ||||
Proceeds from sales of investment property | € 2,500,000 | $ 2.8 | |||
Discounts amount | 39,100,000 | $ 43.2 | |||
Other offering expenses | 400,000 | ||||
Other offering expenses total | € 38,700,000 | ||||
Ordinary shares [member] | |||||
Equity (Details) [Line Items] | |||||
Equity amount (in Dollars) | $ | $ 15.7 |
Share-Based Payments (Details)
Share-Based Payments (Details) € in Millions | 6 Months Ended | |
Jun. 30, 2023 EUR (€) | Jun. 30, 2022 | |
Share-Based Payments (Details) [Line Items] | ||
Common shares, description | The total number of share options granted during the six months ended June 30, 2023 under the 2017 LTIP was as follows: | |
Number of grants | 1,246,000 | 1,561,666 |
Share-based payment expense (in Euro) | € 2.2 | |
Valuation past grants amount (in Euro) | € 4.7 | |
Exercise of share options | 105,327 | 0 |
Option LTIP [Member] | ||
Share-Based Payments (Details) [Line Items] | ||
Exercise of share options | 98,000 | 0 |
Board of Directors [Member] | ||
Share-Based Payments (Details) [Line Items] | ||
Number of grants | 1,567,250 | 1,362,500 |
Share-Based Payments (Details)
Share-Based Payments (Details) - Schedule of Stock Option Activity - shares | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2021 | |
Number of share options under the 2012 Plan [Member] | ||
Share-Based Payments (Details) - Schedule of Stock Option Activity [Line Items] | ||
Outstanding Beginning Balance | 148,433 | 148,433 |
Exercised during the six months ended June 30 | ||
Outstanding Ending Balance | 148,433 | 148,433 |
thereof vested | 148,433 | 148,433 |
Number of share options under the 2016 Plan [Member] | ||
Share-Based Payments (Details) - Schedule of Stock Option Activity [Line Items] | ||
Outstanding Beginning Balance | 888,632 | 888,632 |
Exercised during the six months ended June 30 | ||
Outstanding Ending Balance | 888,632 | 888,632 |
thereof vested | 888,632 | 888,632 |
Number of share options under the LTIP [Member] | ||
Share-Based Payments (Details) - Schedule of Stock Option Activity [Line Items] | ||
Outstanding Beginning Balance | 4,985,523 | 3,170,046 |
Granted during the six months ended June 30 | 1,567,250 | 1,561,666 |
Exercised during the six months ended June 30 | 105,327 | |
Forfeited during the six months ended June 30 | (117,259) | |
Outstanding Ending Balance | 6,447,446 | 4,614,453 |
thereof vested | 4,788,759 | 3,306,162 |
Share-Based Payments (Details_2
Share-Based Payments (Details) - Schedule of Fair Value of Options Granted | 6 Months Ended |
Jun. 30, 2023 $ / shares | |
Share-Based Payments (Details) - Schedule of Fair Value of Options Granted [Line Items] | |
Number of Share options granted | 1,567,250 |
January Twenty four [Member] | |
Share-Based Payments (Details) - Schedule of Fair Value of Options Granted [Line Items] | |
Number of Share options granted | 1,454,250 |
Fair value per option | $ 2.11 |
FX rate as of grant date | 0.9008 |
Fair value per option | 1.9 |
Share price at grant date / Exercise price | $ 2.37 |
Expected volatility | 1.35% |
Expected life (midpoint based) | $ 5.3 |
Risk-free rate (interpolated, U.S. sovereign strips curve) | 3.571% |
January twenty four one [Member] | |
Share-Based Payments (Details) - Schedule of Fair Value of Options Granted [Line Items] | |
Number of Share options granted | 52,500 |
Fair value per option | $ 2.13 |
FX rate as of grant date | 0.9008 |
Fair value per option | 1.92 |
Share price at grant date / Exercise price | $ 2.37 |
Expected volatility | 1.35% |
Expected life (midpoint based) | $ 5.5 |
Risk-free rate (interpolated, U.S. sovereign strips curve) | 3.565% |
May thirty [Member] | |
Share-Based Payments (Details) - Schedule of Fair Value of Options Granted [Line Items] | |
Number of Share options granted | 60,500 |
Fair value per option | $ 361 |
FX rate as of grant date | 0.9203 |
Fair value per option | 3.32 |
Share price at grant date / Exercise price | $ 4.19 |
Expected volatility | 1.35% |
Expected life (midpoint based) | $ 4.5 |
Risk-free rate (interpolated, U.S. sovereign strips curve) | 3.82% |
Protective Foundation (Details)
Protective Foundation (Details) - EUR (€) € / shares in Units, € in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Disclosure of Protective Foundation Explanatory [Abstract] | ||
Common shares authorized | 110,000,000 | |
Preferred shares authorized | 110,000,000 | |
Price per share | € 0.12 | |
Percentage of issued capital | 100% | |
Reimburse expenses | € 45 | € 30 |