the foreseeable future due to, among other things, costs related to research funding, development of its product
candidates and its preclinical programs, strategic alliances and its administrative organization.
To date the Company largely financed its operations through equity raises, licensing proceeds and government
grants. At the end of September 2022, the Company entered into an investment agreement for the private placement
of 2,054,796 registered shares at an offering price of EUR 7.30 per share. In addition, the Company granted the
option to the investors to purchase up to another 2,054,796 registered shares at a price of EUR 7.30 following a
period of twelve months after the date of the approval of a EU Recovery prospectus (in accordance with Section 14a
Prospectus Regulation) or the achievement date of a defined clinical milestone. The gross proceeds of the offering
amount to EUR 15.0 million, and up to an additional EUR 15.0 million if the option to purchase the additional
shares is exercised.
As of September 30, 2022, the issuance date of the Company`s condensed interim financial statements for the
six months periods ended June 30, 2022, the Company expects on the basis of its most recent financing and business
plan that its existing cash and cash equivalents will be sufficient to fund its research and development expenses as
well the general and administrative expenses and cash flows from investing and financing activities at least through
December 2023 in case none of the above mentioned options will be exercised.
Management has considered the ability of the Company to continue as a going concern. Based on the
Company’s recurring losses from operations incurred since inception, expectation of continuing operating losses for
the foreseeable future, and the need to raise additional capital to finance its future operations, as of September 30,
2022, the issuance date of the financial statements for the six months periods ended June 30, 2022, the Company has
concluded that there is no doubt about its ability to continue as a going concern for a period of at least one year from
the date that these financial statements are issued. Consequently, the accompanying financial statements have been
prepared on the basis that the Company will continue as a going concern, which contemplates the realization of
assets and the satisfaction of liabilities and commitments in the normal course of business.
The future viability of the Company beyond December 2023 is dependent on its ability to raise additional funds
to finance its operations. In the event the Company does not receive additional funds from the exercise of the above
mentioned options until December 2023, and the Company does not complete a secondary listing of its common
shares on the Nasdaq Global Market, the Company expects to be required to seek additional funding through private
equity financings, government or private-party grants, debt financings or other capital sources or through
collaborations with other companies or other strategic transactions, including partnering deals for one or more of its
product candidates. The Company is exploring various financing alternatives to meet the Company’s future cash
requirements, including seeking additional investors, pursuing industrial partnerships, or obtaining further funding
from existing investors through additional funding rounds. The Company may not be able to obtain financing on
acceptable terms, or at all, and the Company may not be able to enter into collaborations or other arrangements. The
terms of any financing may adversely affect the holdings or rights of the Company’s shareholders.
If the Company is unable to raise capital on acceptable terms or at all, the Company would be forced to delay,
limit, reduce or terminate its product development or future commercialization efforts of one or more of our product
candidates, or may be forced to reduce or terminate its operations. Although management continues to pursue these
plans, there is no assurance that the Company will be successful in obtaining sufficient funding on terms acceptable
to the Company to fund continuing operations, if at all.
The accompanying condensed interim financial statements have been prepared on the basis that the Company
will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities and
commitments in the normal course of business.
4. Change in accounting policy
The following amendments were adopted effective January 1, 2022 and have not a material impact on the
financial statements of Vivoryon:
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Annual Improvements to IFRS Standards 2018–2020 (January 1, 2022)
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Amendment to IAS 37: Onerous Contracts – Cost of Fulfilling a Contract (January 1, 2022)
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Amendment to IAS 16: Property, Plant and Equipment: Proceeds before Intended Use (January 1, 2022)
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Amendment to IFRS 3: Reference to the Conceptual Framework (January 1, 2022)
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