TIDMETX
RNS Number : 1952K
e-Therapeutics plc
04 May 2022
e-therapeutics plc
("e-therapeutics" or the "Company")
Final results for the year ended 31 January 2022
Change of Registered Office
Significantly strengthened cash position enables expansion of
computational drug discovery platform capabilities and acceleration
of the development of an in-house RNAi therapeutics pipeline
London, UK, 4 May 2022 - e-therapeutics plc (AIM: ETX; OTCQX;
ETXPF), a specialist in computational drug discovery with a focus
on developing RNA interference ("RNAi") therapeutics, announces its
audited final results for the year ended 31 January 2022.
Operational Highlights
-- Strengthened financial position, raising GBP22.5m before expenses in June 2021
-- Three pre-defined milestones achieved in the collaboration
with Galapagos NV ("Galapagos") in idiopathic pulmonary fibrosis
("IPF")
-- Gene silencing RNA interference ("RNAi") platform development
and benchmarking studies successfully completed. Equivalent
performance to leading competitor platforms and excellent safety
profile seen in lead designs in mice and non-human primates
("NHP")
-- Eleven patent applications filed to protect proprietary and
novel GalNAc-siRNA silencing construct designs
-- Rapid progress in the development of a liver focussed
computational platform, including the generation of a
hepatocyte-specific knowledge graph
-- Developed machine learning ("ML") driven siRNA sequence
design and expanded computational therapeutic target identification
capabilities
-- Significant increase in speed and automation of in silico
network biology model construction and analysis. This has resulted
in the ability to generate and computationally analyse complex
human disease processes in a matter of hours as opposed to
months
-- Commenced trading on the OTCQX Best Market ("OTCQX") in the
United States, under the ticker symbol "ETXPF" in September 2021,
to broaden visibility and attract further commercial and investor
attention
Post Period Highlights
-- Immuno-oncology research collaboration with iTeos
Therapeutics ("iTeos") announced on 5 April 2022. The partnership
blends e-therapeutics' computational platform expertise and iTeos'
proprietary assays. e-therapeutics will receive upfront and
near-term cash payments material to the revenue of the Company. The
Company is also eligible to receive undisclosed milestone payments
through pre-clinical and clinical development, in addition to
regulatory milestones per programme
-- Key milestone achieved with Galapagos, resulting in a cash
payment to e-therapeutics following the successful characterisation
by the Company of the mechanism of action of hit compounds ("hits")
identified earlier in the collaboration. The Company has now
achieved all pre-agreed near-term milestones and the future of the
identified hits and targets will be determined by Galapagos
according to its strategic priorities
-- Commenced the pre-clinical prosecution of two hepatocyte targets derived from the Company's computational platform. Further targets are being evaluated in feasibility studies
-- Effective 3 May 2022, the Company's registered office address
changed from 7 Blenheim Office Park Long Hanborough, OX29 8LN,
Oxfordshire to 4 Kingdom Street, W2 6BD, London
Financial Highlights
During the period, the Company strengthened its financial
position following the successful equity fund raise which was
completed in June 2021.
-- Revenues of GBP0.5 million (2021: GBP0.3 million)
-- R&D spend of GBP6.1 million (2021: GBP2.7 million)
-- Operating loss of GBP9.6 million (2021 loss: GBP4.5 million)
-- Loss after tax of GBP8.1 million (2021 loss: GBP3.7 million)
-- GBP22.5 million before expenses, from placing, subscription
and retail offer completed in June 2021
-- Cash and short term investment bank deposits at 31 January
2022 of GBP26.6 million (31 January 2021: GBP13.0 million)
-- R&D tax credit receivable at 31 January 2022 of GBP1.5
million (31 January 2021: GBP0.8 million)
-- Headcount (excluding Non-Executive Directors) at 31 January
2022 was 35 (31 January 2021: 25)
Ali Mortazavi, Chief Executive Officer of e-therapeutics,
commented: "I am extremely pleased with the progress the Company
has made in 2021 in all aspects of the business. We are excited to
partner with iTeos to help identify highly differentiated
immuno-oncology medicines for patients. This collaboration provides
further validation of the value of our network-driven, disease
agnostic computational platform. At the same time, we have again
shown the value of our computational platform with the successful
completion of our collaboration with Galapagos where we met every
success milestone. Importantly, the same computational tools that
are used in these collaborations have been successfully migrated to
our hepatocyte-focused computational platform and applied to
proprietary hepatocyte datasets.
"In October 2021, the Company achieved a major milestone,
announcing positive headline results from in vivo studies
confirming that our proprietary GaINAc-siRNA platform is
competitive relative to peer platforms. This is a material step in
the Company's ultimate goal of developing an in-house RNAi pipeline
with future scope for early-stage partnering. Eleven patent
applications have been filed to protect these innovations.
"We believe that e-therapeutics offers a differentiated
strategy, with the ability to silence any gene in the liver with
extremely rapid pre-clinical timelines, coupled with powerful
computational capabilities, including in better understanding human
hepatocyte biology. Importantly, the execution of our strategy is
well underway and two hepatocyte targets are currently in
pre-clinical research, with further feasibility work being
conducted across multiple other computationally generated
targets."
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK domestic law by virtue of the European Union (Withdrawal) Act
2018 ('MAR'). Upon the publication of this announcement via a
Regulatory Information Service, this inside information is now
considered to be in the public domain.
Enquiries:
e-therapeutics plc
Ali Mortazavi, CEO Tel: +44 (0)1993 883
James Chandler, VP IR & Strategic Communications 125
www.etherapeutics.co.uk
--------------------------
SP Angel Corporate Finance LLP
Tel: +44(0)20 3470 0470
--------------------------
Nominated Adviser and Broker
--------------------------
Matthew Johnson/Caroline Rowe (Corporate
Finance)
--------------------------
Vadim Alexandre/Rob Rees (Corporate Broking)
--------------------------
About e-therapeutics plc
e-therapeutics plc is a UK-based company integrating
computational power and biology to accelerate the discovery of
life-transforming medicines. The Company has developed and
validated a powerful, disease and modality agnostic computational
approach to drug discovery, leveraging its industry-leading
expertise in network biology to fully capture and interrogate human
disease complexity.
The Company's multi-disciplinary team builds computational
models of biological functions to transform the search for new
medicines, interventions, mechanisms and genetic support. Its
biology-led in silico laboratory enables rapid hypothesis
generation and phenotypic screening of millions of compounds
leading to 100-1000x higher hit rates in the wet lab and successful
mode of action elucidation. Novel targets can also be identified,
prioritised and assessed. Harnessing internal target gene
discoveries, e- therapeutics is currently building an in-house
pipeline of RNAi based medicines, using its proprietary
GalNAc-siRNA technology.
e-therapeutics has deployed and validated its disease-agnostic
computational drug discovery platform both in house and with
partners, including Novo Nordisk, Galapagos NV, iTeos and a
US-based, top 5 pharmaceutical company.
Chairman's Statement
The financial year to 31 January 2022 has been one of
significant progress both scientifically and in terms of growing
shareholder value, which sets us on a solid basis for future
success.
As we announced during the year, e-therapeutics is a specialist
in computational drug discovery, now with a focus on developing RNA
interference (RNAi) therapeutics.
The core of our approach relies on the computational modelling
and interrogation of biological mechanisms, moving away from the
traditional "blind" screens that have been historically used by
pharmaceutical/biotech companies to discover new drugs.
Our computational platform enables us to make sense of complex
datasets. By placing genes in the context of the biological
networks to which they belong we can identify key disease-related
biological processes and pathways that can result in the
identification of superior targets and the creation of unique,
novel drug candidates.
Our focus
Our focus during the financial year ending 31 January 2022 has
been on the development of our liver targeting RNAi platform. Our
upcoming drug candidates are designed to silence disease-associated
genes to treat key unmet medical needs.
RNAi medicines are next-generation therapeutics, and their
design is markedly accelerated relative to traditional drug
modalities as it is based on the human genetic code. Other
advantages of RNAi therapeutics include:
-- high specificity against their target gene, thus minimising potential off-target effects;
-- long duration of action, supporting infrequent administration
and reduced patient burden; and
-- good safety profile.
An additional level of specificity can be achieved by coupling
siRNA molecules to delivery systems for specific targeting of cell
types. Our siRNA constructs are conjugated to N-Acetylgalactosamine
(GalNAc) moieties which mediate highly specific delivery to
hepatocytes in the liver.
I am pleased to report that we have made rapid progress in this
field during the past year such that we were able to announce, in
October 2021, top-line positive results from in vivo studies in
non-human primates, confirming that the GaINAc-siRNA platform has
been successfully benchmarked against leading competitor RNAi
platforms.
These excellent results show that our proprietary delivery
system and siRNA chemistries are competitive relative to peer
platforms, which is a material step in the Company's ultimate goal
of developing an in-house RNAi pipeline with future scope for
early-stage partnering.
In addition, the Company is building the most complete
hepatocyte knowledge graph integrating numerous data sources and
its newly created, AI-enhanced, hepatocyte protein-protein
interactome. This cell type-specific knowledge graph provides a key
differentiator in the search for novel RNAi targets.
We firmly believe that our continuing success in this impactful
therapeutic modality, together with our computational edge, places
us in a strong competitive position.
In parallel, we have made further progress in our collaboration
with Galapagos to identify new therapeutic approaches to modulate a
specific mechanism involved in idiopathic pulmonary fibrosis (IPF)
and potentially in other fibrotic indications with high unmet need.
Hit compounds were successfully identified and experimentally
validated, further verifying the applicability of our platform
across different areas of biology and under stringent success
criteria set by leading partners.
Our financial position
These advances during this highly successful year have been made
possible through the June 2021 GBP22.5m gross fundraise and I would
like to acknowledge and thank new and existing shareholders for
their continuing support.
The Board and management have advanced in implementing and
maintaining robust financial controls. The Company has strengthened
its financial position, enabling the next stage of growth, value
creation and sufficient working capital for at least 12 months.
In the coming financial year, we will continue to drive forward
with our strategic plans. We therefore anticipate a significant
increase in the rate of spend whilst maintaining a prudent budget,
which incorporates discretionary spend, that could be scaled back
if considered appropriate.
Organisation
The new focus on RNAi therapeutics has been accompanied by some
organisational changes. Ali Mortazavi's outstanding leadership as
CEO has resulted in the establishment of two key
discovery/development teams, with an Informatics focused division
led by our CTO, Dr Jonny Wray, and a Biology focused division led
by our CSO, Dr Alan Whitmore. These R&D divisions are supported
by the rest of our experienced Executive Committee and its
respective specialist teams in Finance, Business Development, Human
Resources and Intellectual Property.
We have been fortunate to attract a number of key scientists to
join our Company and are actively seeking to make additional
appointments to further strengthen our teams as we prepare to
populate our in-house pipeline with high-confidence candidates. Key
open positions include an additional Non-Executive Director and a
Chief Financial Officer.
As has been the case for all organisations during the past two
years, and in line with Government requirements, the SARS-CoV-2
pandemic resulted in the need to establish new working
arrangements. Fortunately, the nature of e-therapeutics, activities
(in particular the central role of AI and computational biology)
has meant that we have been less affected by the pandemic than has
been the case for those companies whose activities depend on wet
chemistry/biology laboratories.
As with any successful organisation, involving staff, at all
levels, in discussions and decisions about their future and that of
the organisation is paramount. Our Human Resources group led by
Chief People Officer Stephanie Maley has been especially active in
running a series of consultations and we have now agreed a hybrid
working policy. We have opened a central London office conveniently
located near transport networks, including international
airports.
We continue to engage with shareholders and potential new
investors, and I invite you to contact us should you wish to
discuss any matters relating to our business.
Finally, in addition to congratulating all staff for their
success during the year, I would like to express my thanks to Ali
Mortazavi for his exceptional dedication and leadership and to
thank my colleague Michael Bretherton, who, in addition to his NED
role, has recently taken interim oversight of financial matters
pending the appointment of a new CFO following the previously
announced departure of Karl Keegan for family reasons.
It is my pleasure to be Chairman of the Company. We are excited
about the potential for e-therapeutics going forward and in a
strong position both scientifically and financially to achieve our
objectives.
Professor Trevor Jones CBE FMedSci
Independent Non-Executive Chairman
4 May 2022
Chief Executive's Statement
2021 was a transformative year for e-therapeutics against the
backdrop of multiple unprecedented global macro challenges. Despite
the enormous success of the global vaccination programme to tackle
COVID-19, many operational and logistical challenges remained in
2021. By October 2021, the hope for a return to normality was
seriously hindered by the emergence of the Omicron variant and we,
like many other companies, were forced to delay the return to an
office environment. In addition, and at the same time as the
emergence of Omicron, the global biotechnology sector saw a
dramatic and unprecedented decline.
In spite of these challenges, and thanks to the nimble nature of
the Company, it was a landmark year for e-therapeutics which saw
significant and material progress across all aspects of the
business. It is a testament to the team and our collective ambition
to reinvent the drug discovery industry and compute the future of
medicine that we were able to achieve so much against such an
unforgiving backdrop. Key achievements in 2021 include:
Capital Raise
In June 2021, we strengthened our balance sheet with an equity
capital raise of GBP22.5m before expenses. Importantly, we received
significant blue chip institutional support for our strategy which
will enable us to realise our ambitions to become a world leading
company in the field of computational approaches to drug
discovery.
RNAi liver platform
A key component of our strategy was to establish a proprietary
therapeutic technology platform which is potent, specific, safe,
reproducible and gives us the ability to design potential drug
candidates as quickly as possible. This would put us in a position
of being able to rapidly prosecute novel target genes identified
using our computational engine. We focused on liver targeting given
the organ's crucial role across a variety of homeostatic biological
function, including in complex cardiometabolic diseases.
GalNAc-siRNA conjugates are a commercial stage, next-generation
therapeutic modality that enables highly specific hepatocyte
targeting and potent gene silencing.
In October 2021, we announced significant progress in
establishing our proprietary liver-centric RNAi platform. Our in
vivo experiments yielded two different GalNAc-siRNA construct
designs that showed at least equivalent performance in terms of
potency, target gene silencing and duration of action (up to three
months) against the best competitor data in the same targets in
NHP. These data enabled us to file eleven new patent applications
to protect these novel construct designs.
Yet again, despite an extremely unfavourable global logistics
background, we successfully completed these critical platform
validation experiments on time and on budget. This key validating
dataset on our GalNAc-siRNA platform technology firmly places the
Company in an area with an extremely high barrier to entry and a
very small global peer group, which is in need of better
therapeutic targets to unlock further value in areas of high unmet
need.
Target identification and computational platform
specialisation
Target identification is currently the biggest limitation in
GalNAc-siRNA and there is a high degree of overlap in competitive
pipelines. An important differentiator for the Company relative to
RNAi peers is the ability to leverage its computational platform to
identify better, novel therapeutic targets. Our computational
platform is also an enabler in the discovery of mechanistic
insights, assessment of genetic support and in silico evaluation of
target hypotheses ahead of wet lab experiments.
To complement our GalNAc-siRNA capabilities and feed our
in-house pipeline, the Company has created a hepatocyte-focused
specialisation within its core computational platform.
e-therapeutics is also executing on an ambitious data strategy to
create the most comprehensive and integrated hepatocyte-centric
data resource in the World, tailored to our computational biology
approach to drug discovery. We are compiling experimental data at
genome-wide scale using bespoke human hepatocyte assays and
combining it with our existing state-of-the-art network analytics
and artificial intelligence/machine learning ("AI/ML") approaches
to create a seamless connection between the computer and the
laboratory.
Our assays are guided by our in silico work and our in vitro
experimental data feed back into making increasingly better models
of human biology. In addition, the Company is building the most
complete hepatocyte knowledge graph, integrating its experimental
data and its newly created AI/ML enhanced, hepatocyte
protein-protein interactome. The knowledge graph already includes
data derived from natural language processing of hundreds of
thousands of publications and data sources, patient-derived
information, patent mining and human expertise.
This knowledge graph is structured to allow it to perform
ML-driven mechanistic inference to impute missing links and uncover
hidden knowledge around biological mechanisms, the greatest
roadblock to efficient drug discovery and development. This
integrated resource will provide the Company with an unprecedented
foundation from which to derive disease intervention hypotheses,
support network model construction, carry out target identification
and discover genetic links. It will also provide data and insights
to feed into its AI-driven siRNA design workflows, which are
another addition to our tool kit. The bases for this data strategy
are already in place and providing insights as we continue to grow
and enhance our capabilities. Furthermore, the knowledge graph and
tailored computational tools we have developed in hepatocytes can
be replicated in additional cell types of interest.
Importantly, the Company has expanded its network-aware target
identification, MoA (mode of action) elucidation and target
deconvolution capabilities. This has been possible via the
augmentation of network-based analysis with a suite of proprietary
AI/ML approaches. These target-centric approaches continue to
complement foundational phenotypic modelling capabilities.
Taken together, the enhanced applications of the e-therapeutics'
computational platform that have been developed to date will be a
key enabler both internally and for partners. In addition,
e-therapeutics continues to streamline its computational platform
via increased automation and cloud computing.
Partnerships and Collaborations
Partnering and collaborating around our computational biology
platform has been a key component of our strategy during the
period. We believe that not only can we derive revenue streams from
these collaborations, but partnerships also allow us to learn and
enhance our platform under pharmaceutical settings. We are
extremely pleased to collaborate with iTeos, a clinical-stage
biopharmaceutical company pioneering the discovery and development
of a new generation of highly differentiated immuno-oncology
therapeutics for patients. The collaboration is focused on the
discovery of novel therapeutic approaches and targets in
immuno-oncology and e-therapeutics will remain free to explore
additional collaborations in the space.
In addition, we have achieved all near-term milestones in our
collaboration with Galapagos as we have successfully identified
potential therapeutic strategies and targets in a specific area of
biology associated with IPF and potentially other fibrotic
indications. In keeping with previous e-therapeutics projects, the
hit rate in identification of active compounds was several orders
of magnitude higher than industry standard, further validating
e-therapeutics' robust computational biology methods. The future of
the identified hits and targets will be determined by Galapagos
according to its strategic priorities and we remain in active
dialogue with other potential partners.
Outlook
Despite the challenging macro-operating environment experienced
during the period, we have demonstrated great adaptability and
focus which has resulted in significant scientific, technological
and commercial progress. Our prospects remain favourable, and we
are confident that our equity story is extremely attractive,
differentiated and compelling.
We have successfully leveraged and monetised our computational
platform and developed a proprietary gene silencing RNAi platform,
enabling us to prosecute our discoveries and build long-term value.
In addition, we have successfully started the population of our
in-house pipeline of RNAi therapeutics with the initiation of
experimental work on two gene targets.
I remain extremely confident in the potential of e-therapeutics
and believe that your Company is well placed to become a world
leading company able to compute the future of medicine.
Ali Mortazavi
Chief Executive Officer
4 May 2022
Financial Review
This has been a year of significant progress which has included
strengthening the management team and raising net proceeds of
GBP21.7m through an equity issue in order to fund an expansion of
the Company's RNAi and computational platform capabilities and
build and populate an internal pipeline of high-conviction early
assets.
Revenue
Revenue of GBP0.5m for the year (2021: GBP0.3m) relates mainly
to the partial recognition of upfront payments and the achievement
of milestones under the collaboration agreement with Galapagos to
identify new therapeutic approaches to modulate a specific
mechanism involved in IPF and potentially in other fibrotic
indications.
Multiple in vitro and in vivo studies to test newly designed
siRNA constructs were undertaken during the year with headline
results announced that show at least equivalent performance and
safety to industry-leading RNAi platforms. This is a material step
in the Company's ultimate goal of developing an in-house RNAi
pipeline with future scope for early-stage partnering and revenue
generation.
Fundraise
An equity fundraise of GBP21.7m (gross GBP22.5m less related
costs and commissions of GBP0.8m) was completed in June 2021 to
expand the Company's platform capabilities and asset pipeline
including investing in RNAi therapeutic programmes, further
developing the computational platform, generating hepatocyte
proprietary data and building and populating an internal pipeline
of high- conviction early assets, as well as recruiting additional
scientists and staff to support the scale-up. Overall headcount
(excluding Non-Executive Directors) increased from 25 at 31 January
2021 to 35 at 31 January 2022.
R&D expenditure
R&D expenditures increased considerably to GBP6.1m compared
to GBP2.7m for the prior year. Significant progress has been made
in developing the Company's RNAi therapeutics platform and 11
patent applications have now been filed, including around
stabilising chemical modifications enabling specific hepatocyte
(liver cell) targeting. The Company has also continued to advance
its computational platform, with an increased focus on
network-aware novel target identification, mode of action
elucidation and target deconvolution.
Administrative expenditure
Administrative expenditure for the year totalled GBP3.9m (2021:
GBP2.1m) inclusive of a share-based payment employee option charge
of GBP0.5m (2021: GBP0.4m). The increased cost reflects continued
improvements to our underlying system infrastructure and processes
to ensure that they grow with the business, enabling our increased
employee base to work efficiently and ensuring the safety of our
information assets. This included the opening of a modern London
head office in late October 2021, although subsequent
Omicron-related COVID-19 restrictions meant that the office did not
become fully operational until after the recent lifting of all such
restrictions in England on 24 February 2022.
Operating loss
The operating loss for the year of GBP9.6m is GBP5.1m higher
than that in the prior year. This is mainly attributable to
increased R&D expenditure, together with higher administration
costs as the business continues to grow.
R&D tax credits and loss for the year
The consolidated income statement includes an R&D tax credit
of GBP1.5m (2021: GBP0.8m) to be received in relation to the
current year, bringing down the loss for the year to GBP8.1m (2021:
GBP3.7m). The R&D tax credit claim has not yet been submitted
to HM Revenue and Customs, but historically the amounts received
have been materially in line with our calculated tax receivable
estimate included at the year end.
Cash flow
Year end cash and short term investment bank deposits amounted
to GBP26.6m, which is GBP13.6m higher than at the previous year
end. The increase reflects an equity fundraise inflow of GBP21.7m,
together with R&D tax credits received of GBP0.8m, partially
offset by an underlying net outflow cash burn of GBP8.8m relating
mainly to operating losses exclusive of non-cash charges in
relation to share-based payment employee option costs of GBP0.5m
and depreciation, amortisation and impairment costs of GBP0.2m.
Capital expenditures in the year include GBP0.8m in respect of a
right to use property comprising a new London office lease which
was fully funded by a corresponding finance lease liability.
Financial outlook
In the coming financial year, we will drive forward with the
strategic plans formulated during the large mid-year fundraise in
June 2021 which include:
-- generation of experimental hepatocyte-specific proprietary
data for the Company's in silico discovery engine;
-- advancement of two to three RNAi therapeutic programmes through preclinical development;
-- progress a first-in-human clinical study for one RNAi asset
to provide additional validation;
-- further development of the Company's computational platform; and
-- exploration of RNAi in other cell types.
Our budget, which has been prepared to reflect the above
strategic plans, shows that we have sufficient funds to continue in
operational existence for at least 12 months from the signing of
these financial statements. We anticipate a significant increase in
our rate of spend, but our budget remains prudent and incorporates
discretionary spend which could be scaled back if considered
appropriate.
Michael Bretherton
Chief Financial Officer
4 May 2022
Consolidated Income Statement
For the year ended 31 January 2022
2022 2021
Notes (audited) (audited)
GBP'000 GBP'000
Revenue 477 317
Cost of sales - -
========================================= ====== ============== ==================
Gross pro t 477 317
Research and development expenditure (6,109) (2,705)
Administrative expenses (3,938) (2,097)
========================================= ====== ============== ==================
Operating loss (9,570) (4,485)
Interest income 61 17
Interest expense (10) -
========================================= ====== ============== ==================
Loss before tax (9,519) (4,468)
Taxation 5 1,449 784
========================================= ====== ============== ==================
Loss for the year attributable to equity
holders of the Company (8,070) (3,684)
========================================= ====== ============== ==================
Loss per share: basic and diluted 6 (1.65)p (0.99)p
========================================= ====== ============== ==================
Consolidated Statement of Comprehensive Income
For the year ended 31 January 2022
2022 2021
(audited) (audited)
GBP'000 GBP'000
Loss for the nancial year (8,070) (3,684)
Other comprehensive income - -
============================================================= ========== ==========
Total comprehensive loss for the year attributable to equity
holders of the Company (8,070) (3,684)
============================================================= ========== ==========
Consolidated Statement of Changes in Equity
For the year ended 31 January 2022
Share Share premium Retained
capital GBP'000 earnings Total
GBP'000 deficit GBP'000
GBP'000
----------------------------- -------------------------------- ---------------------- ---------- -----------------
As at 1 February 2020
(audited) 269 65,176 (60,943) 4,502
Total comprehensive income
for year
Loss for the nancial year - - (3,684) (3,684)
============================= ================================ ====================== ========== =================
Total comprehensive loss for
year - - (3,684) (3,684)
Transactions with owners,
recorded
directly in equity
Issue of ordinary shares 152 12,492 - 12,644
Equity-settled share-based
payment transactions - - 422 422
============================= ================================ ====================== ========== =================
Total contributions by and
distribution to owners 152 12,492 422 13,066
============================= ================================ ====================== ========== =================
As at 31 January 2021
(audited) 421 77,668 (64,205) 13,884
Total comprehensive income
for year
Loss for the nancial year - - (8,070) (8,070)
============================= ================================ ====================== ========== =================
Total comprehensive loss for
year - - (8,070) (8,070)
Transactions with owners,
recorded
directly in equity
Issue of ordinary shares 94 21,575 - 21,669
Equity-settled share-based
payment transactions - - 490 490
============================= ================================ ====================== ========== =================
Total contributions by and
distribution to owners 94 21,575 490 22,159
============================= ================================ ====================== ========== =================
As at 31 January 2022
(Audited) 515 99,243 (71,785) 27,973
============================= ================================ ====================== ========== =================
Consolidated Statement of Financial Position
As at 31 January 2022
(Restated) (Restated)
Notes 2022 2021 2020
(audited) (audited) (audited)
GBP'000 GBP'000 GBP'000
Non-current assets
Intangible assets 7 102 83 110
Property, plant and equipment 8 805 79 93
Investments - - -
=============================== ====== ================= ================ ===================
907 162 203
=============================== ====== ================= ================ ===================
Current assets
Tax receivable 5 1,474 769 557
Trade and other receivables 231 57 36
Prepayments 501 296 149
Cash and cash equivalents 9 11,598 7,005 2,833
Short term investments 9 15,051 6,022 1,008
28,855 14,149 4,583
=============================== ====== ================= ================ ===================
Total assets 29,762 14,311 4,786
=============================== ====== ================= ================ ===================
Current liabilities
Trade and other payables 1,103 327 215
Deferred revenue liability - 77 -
Lease liability 391 23 46
1,494 427 261
=============================== ====== ================= ================ ===================
Non-current liabilities
Lease liability 295 - 23
=============================== ====== ================= ================ ===================
Total liabilities 1,789 427 284
=============================== ====== ================= ================ ===================
Net assets 27,973 13,884 4,502
=============================== ====== ================= ================ ===================
Equity
Share capital 10 515 421 269
Share premium 99,243 77,668 65,176
Retained earnings deficit (71,785) (64,205) (60,943)
=============================== ====== ================= ================ ===================
Total equity attributable to
equity holders of the Company 27,973 13,884 4,502
=============================== ====== ================= ================ ===================
Restatements reflect a simple reclassification of bank deposits
on 95 days' notice as short-term investments - see note 9.
Consolidated Statement of Cash Flow
For the year ended 31 January 2022
(Restated)
Notes 2022 2021
(audited) (audited)
GBP'000 GBP'000
Loss for the year (8,070) (3,684)
Adjustments for:
Depreciation, amortisation
and impairment 7,8 218 111
Equity-settled share-based
payment expense 490 422
Interest income (61) (17)
Interest expense 10 -
Taxation 5 (1,484) (802)
=================================== ====== ================== ==================
Operating cash flows before
movements in working capital (8,897) (3,970)
Increase in trade and other
receivables (379) (167)
Increase in trade and other
payables 699 189
Tax received 779 590
=================================== ====== ================== ==================
Net cash used in operating
activities (7,798) (3,358)
=================================== ====== ================== ==================
Interest received 61 17
Interest expense (10) -
Acquisition of other intangible
assets 7 (55) (18)
Acquisition of property,
plant and equipment 8 (908) (53)
Movement in short term investments 9 (9,029) (5,014)
=================================== ====== ================== ==================
Net cash used in investing
activities (9,941) (5,068)
=================================== ====== ================== ==================
Proceeds from issue of share
capital 21,669 12,644
Proceeds from lease liability 793 -
Repayment of lease liability (130) (46)
=================================== ====== ================== ==================
Net cash from nancing activities 22,332 12,598
=================================== ====== ================== ==================
Net increase in cash and
cash equivalents 4,593 4,172
Cash and cash equivalents
at 1 February 7,005 2,833
Cash and cash equivalents
at 31 January 11,598 7,005
=================================== ====== ================== ==================
Restatements reflect a simple reclassification of bank deposits
on 95 days' notice as short-term investments - see note 9.
The acquisition of property, plant and equipment in the year to
31 January 2022 includes a non-cash amount of GBP0.79 million
capitalised in respect of a right to use property for which a
corresponding non-cash amount has been recognised in proceeds from
lease liability.
Notes
1. Status of Audit
The financial information set out herein does not constitute
statutory accounts as defined in Section 434 of the Companies Act
2006. The financial information for the year ended 31 January 2022
has been extracted from the Group's audited financial statements
which were approved by the Board of Directors on 4 May 2022 and
which, if adopted by the members at the Annual General Meeting,
will be delivered to the Registrar of Companies for England and
Wales.
The financial information for the year ended 31 January 2021 has
been extracted from the Group's audited financial statements which
were approved by the Board of Directors on 12 May 2021 and which
have been delivered to the Registrar of Companies for England and
Wales.
The report of the auditor on these financial statements was
unqualified, did not contain a statement under Section 498(2) or
Section 498(3) of the Companies Act 2006. The report of the auditor
on the 31 January 2021 financial statements was unqualified, did
not contain a statement under Section 498(2) or Section 498(3) of
the Companies Act 2006, and did not include a matter to which the
auditors drew attention by way of emphasis without qualifying their
report.
The information in this preliminary statement has been extracted
from the audited financial statements for the year ended 31 January
2022 and as such, does not contain all the information required to
be disclosed in the financial statements prepared in accordance
with International Accounting Standards in Conformity with the
provisions of the Companies Act 2006.
The Company is a public limited company incorporated and
domiciled in England & Wales and whose shares are quoted on
AIM, a market operated by The London Stock Exchange.
2. Basis of preparation
While the financial information included in this preliminary
announcement has been prepared in accordance with the recognition
and measurement criteria of international accounting standards in
conformity with the requirements of the Companies Act 2006, this
announcement does not in itself contain sufficient information to
comply with IFRS. This preliminary announcement has been prepared
using the accounting policies that are expected to be published in
the Group's accounts for the year ended 31 January 202 2 , which
are consistent with the accounting policies published in the
Group's accounts for the year ended 31 January 202 1 and that are
available on the Company's website at www.etherapeutics.co.uk, with
the exception of those new standards, interpretations and
amendments which became effective during the year and were adopted
by the Group, albeit with no impact on the Group's loss for the
year or equity on initial recognition.
This announcement contains forward-looking statements that are
based on current expectations or beliefs, as well as assumptions
about future events. These forward-looking statements can be
identified by the fact that they do not relate only to historical
or current facts. Forward-looking statements often use words such
as anticipate, target, expect, estimate, intend, plan, goal,
believe, will, may, should, would, could, is confident, or other
words of similar meaning. Undue reliance should not be placed on
any such statements because they speak only as at the date of this
document and, by their very nature, they are subject to known and
unknown risks and uncertainties and can be affected by other
factors that could cause actual results, plans and objectives, to
differ materially from those expressed or implied in the
forward-looking statements. There are a number of factors which
could cause actual results to differ materially from those
expressed or implied in forward-looking statements. The Company
undertakes no obligation to revise or update any forward-looking
statement contained within this announcement, regardless of whether
those statements are affected as a result of new information,
future events or otherwise, save as required by law and
regulations.
Going concern
Although the Group has recognised revenue from commercial deals
during the current and prior year, it is still largely reliant on
its cash and short-term investment bank deposits to fund ongoing
operations.
At 31 January 2022, we reported cash and short-term investment
bank deposits of GBP26,649,000, versus an underlying cash burn
during the year of GBP8,791,000, excluding R&D tax credits
received and net proceeds from the equity fundraise.
We prepared detailed strategic plans as part of the fundraise
process completed in June 2021, which raised total gross proceeds
of GBP22,500,000. We have also prepared a detailed annual budget
and follow-on projections, which together cover a 24-month period,
and provide support for the view that the Group has sufficient cash
to meet its operational requirements for at least 12 months from
the signing of these financial statements. The budget includes a
significant increase in R&D expenditure, in line with
progressing our strategic aims. This expenditure is largely
uncommitted and discretionary and would be reduced or postponed if
required to manage the Group's cash resources.
The financial performance and position of the Group are
discussed in more detail in the Financial Review above.
The preliminary announcement has been prepared on the going
concern basis since, given the points discussed above, the
Directors have a reasonable expectation that the parent Company and
the Group have adequate resources to continue in operational
existence for the foreseeable future.
3. Accounting judgements and sources of estimation uncertainty
The preparation of financial statements requires management to
make judgements, estimates and assumptions that may affect the
application of accounting policies and the reported amounts of
assets, liabilities, income and expenses. The estimates and
underlying assumptions are reviewed on an ongoing basis.
The following are the key judgements that management have made
in the process of applying the Group's accounting policies and that
have the most significant effect on the amounts recognised in these
financial statements:
-- There are various revenue streams from collaborative
partnerships. Management review these revenue streams against the
IFRS 15 criteria to establish whether revenue should be recognised
over time or at a point in time. Revenue recognised over time
results in a difference between up-front cash receipts and revenue
recognised, the balance of which is recorded on the Balance Sheet.
At the year end, deferred revenue liability was GBPnil (2021:
GBP77,000). Revenue of GBP477,000 (2021: GBP317,000) is made up of
GBP400,000 (2021: GBP163,000) recognised at a point in time and
GBP77,000 (2021: GBP154,000) over time.
-- The Directors have not recognised a deferred tax asset based
on an assessment of the probability that future taxable income will
be available against which the deductible temporary differences and
tax loss carry-forwards can be utilised.
The following are the key assumptions concerning estimation
uncertainty that may have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within
the next financial year:
-- The current tax receivable, of GBP1,474,000 (2021:
GBP769,000), represents an R&D tax credit based on an advance
claim with HMRC. The final receivable is subject to judgement and
the correct application of complex R&D tax rules. The minimum
receipt approved by HMRC could be GBPnil. Historically, final
claims have been successful and materially in line with the
receivable recognised in the financial statements. The Group
expects the current year to be successful too.
4. Staff numbers
The average number of persons employed by the Group (including
Executive Directors and excluding Non-Executive Directors) during
the year, analysed by category, was as follows:
Average number
of employees
2022 2021
(audited) (audited)
---------------------------------- ---------- ----------
R&D staff 21 12
Finance and administration staff 10 5
Executive Directors 1 1
================================== ========== ==========
32 18
================================== ========== ==========
5 . Taxation
2022 2021
(audited) (audited)
GBP'000 GBP'000
Current tax:
SME R&D tax credit receivable for the current
year (1,439) (751)
Adjustments for prior year in respect of
SME R&D tax credit (10) (33)
================================================ ========== =================
Current tax credit (1,449) (784)
================================================ ========== =================
Deferred tax - -
================================================ ========== =================
Total tax credit on loss on ordinary activities (1,449) (784)
================================================ ========== =================
The standard rate of corporation tax applied to reported profit
is 19% (2021: 19%). The credit for the year can be reconciled to
the Consolidated Income Statement as follows:
2022 2021
(audited) (audited)
GBP'000 GBP'000
Loss before tax (9,519) (4,468)
Tax at the UK corporation tax rate of 19%
(2020: 19%) (1,809) (849)
Expenses not deductible for tax purposes (4) -
Enhanced relief for SMEs in relation to
R&D (619) (323)
Unrelieved tax losses 920 396
Other 73 25
Adjustments in respect of prior year (10) (33)
========================================== ========== ==================
Total tax credit for the year (1,449) (784)
========================================== ========== ==================
The total tax credit recognised with the Consolidated Income
Statement is GBP1,484,000 (2021: GBP802,000), which is made up the
small or medium- sized enterprise ("SME") R&D tax relief of
GBP1,449,000 (2021: GBP784,000) and Research and Development
Expenditure Credit ("RDEC") of GBP35,000 (2021: GBP18,000). The SME
tax credit is shown within taxation, as reconciled above. The RDEC
is included within administrative expenses in the Consolidated
Income Statement on the basis that the RDEC is treated as taxable
income, being an 'above the line' relief.
The tax receivable on the Balance Sheet, of GBP1,474,000 (2021:
GBP769,000), is made up of current year SME tax relief of
GBP1,439,000 (2021: GBP751,000) and RDEC of GBP35,000 (2021:
GBP18,000). Historically, R&D credits relating to both the SME
scheme and the RDEC scheme have been received from HMRC as a single
payment.
The Group has accumulated losses available to carry forward
against future trading profits of GBP33,623,000 (2021:
GBP28,835,000). No deferred tax has been recognised in respect of
tax losses since it is uncertain at the Balance Sheet date as to
whether future profits will be available against which the unused
tax losses can be utilised. The estimated value of the deferred tax
asset not recognised, measured at the main rate of 25% (2021: 19%),
is GBP9,792,000 (2021: GBP5,499,000).
The increase in the current year tax credit is due to an
increased R&D credit, as a result of higher qualifying
expenditure during the year, enabled by the fundraise during the
year. The current year R&D credit has not yet been approved by
HMRC and, therefore, there is a risk that this claim may not be
successful.
6. Loss per share
2022 2021
(audited) (audited)
Earnings for the purposes of basic earnings
per share and diluted earnings per share,
being loss attributable to owners of the
Company (GBP'000) (8,070) (3,684)
Weighted average number of ordinary shares
for the purposes of basic earnings per
share and diluted earnings per share (number) 488,342,124 373,215,456
Loss per share - basic and diluted (p) (1.65) (0.99)
=============================================== =========== ===========
The calculation of the basic and diluted earnings per share is
based on the following data:
Diluted EPS is calculated in the same way as basic EPS but also
with reference to reflect the dilutive effect of share options in
existence at the year end over 22,100,614 (2021: 22,622,836)
ordinary shares. The diluted loss per share is, however, identical
to the basic loss per share, as potential dilutive shares are not
treated as dilutive where they would reduce the loss per share.
7. Intangible assets - Group
Patents and
Goodwill trademarks Total
GBP'000 GBP'000 GBP'000
Cost
As at 1 February 2020 2,101 1,332 3,433
Additions - 18 18
============================== ========== ================ ============
As at 31 January 2021 2,101 1,350 3,451
Additions - 55 55
============================== ========== ================ ============
As at 31 January 2022 2,101 1,405 3,506
============================== ========== ================ ============
Amortisation and impairment
As at 1 February 2020 2,101 1,221 3,322
Impairment losses - 30 30
Amortisation charge for the
year - 16 16
============================== ========== ================ ============
As at 31 January 2021 2,101 1,267 3,368
Impairment losses - 25 25
Amortisation charge for the
year - 11 11
============================== ========== ================ ============
As at 31 January 2022 2,101 1,303 3,404
============================== ========== ================ ============
Net book value
As at 1 February 2020 - 110 110
============================== ========== ================ ============
As at 31 January 2021 - 83 83
============================== ========== ================ ============
As at 31 January 2022 - 102 102
============================== ========== ================ ============
Research and development costs of GBP6,109,000 (2021:
GBP2,705,000) have been recognised in the Consolidated Income
Statement.
Amortisation
Amortisation has been charged on patents for which the
registration process is complete, over the term granted.
Amortisation is included within administrative expenses.
The goodwill in the Company Balance sheet arose following the
hive up of the trade and assets of InRotis Technologies Limited in
2007. That goodwill was fully impaired during 2020, reflecting the
fact that the Group's business model was then founded upon a very
different, and significantly advanced, technological capability
versus that at the date of the hive-up in 2007.
8. Property, plant and equipment - Group
Right-to-use Plant and Fixtures
Property equipment and
GBP'000 GBP'000 fittings Total
GBP'000 GBP'000
Cost
As at 1 February
2020 123 162 103 388
Additions - 53 - 53
Disposals - (1) - (1)
==================== =================================================== ============== ========= ================
As at 31 January
2021 123 214 103 440
Additions 802 64 42 908
Disposals (123) - - (123)
==================== =================================================== ============== ========= ================
As at 31 January
2022 802 278 145 1,225
==================== =================================================== ============== ========= ================
Depreciation
As at 1 February
2020 46 151 100 297
Depreciation charge
for the year 46 18 1 65
Disposals - (1) - (1)
==================== =================================================== ============== ========= ================
As at 31 January
2021 92 168 101 361
Depreciation charge
for the year 148 31 3 182
Disposals (123) - - (123)
==================== =================================================== ============== ========= ================
As at 31 January
2022 117 199 104 420
==================== =================================================== ============== ========= ================
Net book value
As at 1 February
2020 77 13 3 93
==================== =================================================== ============== ========= ================
As at 31 January
2021 31 46 2 79
==================== =================================================== ============== ========= ================
As at 31 January
2022 685 79 41 805
==================== =================================================== ============== ========= ================
9. Cash and cash equivalents and short-term investments -
Group
2022 2021
GBP000 GBP000
Cash at bank and in hand 3,568 3,005
Bank deposits on 32 days' notice 8,030 4,000
---------------------------------- ------------ -----------
Cash and cash equivalents 11,598 7,005
================================== ============ ===========
Short term investments (bank
deposits on 95 day notice) 15,051 6,022
================================== ============ ===========
Total cash and cash equivalents
and short term investments 26,649 13,027
================================== ============ ===========
The Group's primary objective is to minimise the risk of a loss
of capital and to eliminate any loss of liquidity which would have
a detrimental effect on the business . Short term surplus funds are
deposited with reputably rated banks for maturities of not more
than 95 days.
Restate ments : historically bank deposits on 95 days' notice
were treated as cash with a maturity of three months and were
included within cash and cash equivalents balances but it is now
considered more appropriate that these be classified as short-term
investments and accordingly the related prior year balances have
also been restated to reflect this. The resultant impact is to
reduce prior year cash and cash equivalents balances at 31 January
2021 and 31 January 2020 by GBP6.022 million and GBP1.008 million
respectively and to increase short term investments by the same
corresponding amounts.
10. Share capital - Company and Group
No. of ordinary shares
2022 2021
(audited) (audited)
In issue at 1 February 420,773 269,125
Share issues 93,798 151,649
========================================== ========== ===================
Total shares authorised and in issue
at 31 January - fully paid 514,571 420,774
========================================== ========== ===================
2022 2021
Nominal value GBP'000 GBP'000
========================================== ========== ===================
Allotted, called up and fully paid
514,571,069 (2021: 420,773,546) ordinary
shares of GBP0.001 each 515 421
========================================== ========== ===================
515 421
========================================== ========== ===================
The Company has one class of ordinary shares, which carry no
right to fixed income.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR BCGDUDXGDGDX
(END) Dow Jones Newswires
May 04, 2022 02:02 ET (06:02 GMT)
E-therapeutics (LSE:ETX)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
E-therapeutics (LSE:ETX)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
