Oncolys Biopharma, Inc. TSE:4588

Oncolys BioPharma : Non-consolidated Financial Results for the Fiscal Year Ended December 31, 2021

Published

Source: MarketScreener

NB: this is a summary translation of the press release original drafted in Japanese for the disclosure required in compliance with the TSE regulations.

Non-consolidated Financial Results

for the Fiscal Year Ended December 31, 2021

[Japanese GAAP]

February 10, 2022

Company name: Oncolys BioPharma Inc.

Stock exchange listing: Tokyo Stock Exchange

Code number: 4588

URL: http://www.oncolys.com

Representative: Yasuo Urata, President & CEO

Contact: Keiji Yoshimura, Vice President

Email: [email protected]

Scheduled date of Annual General Meeting of Shareholders: March 30, 2022

Scheduled date of commencing dividend payments: ―

Scheduled date of filing annual securities report: March 31, 2022

Availability of supplementary briefing material on financial results: No

Schedule of financial results briefing session: Scheduled (for analysts)

(Amounts of less than one million yen are rounded down.)

1. Financial Results for the Fiscal Year Ended December 31, 2021 (January 1, 2021 to December 31, 2021)

(1) Operating Results

(% indicates changes from the previous corresponding period.)

Net sales

Operating profit

Ordinary profit

Profit

Fiscal year ended

Million yen

%

Million yen

%

Million yen

%

Million yen

%

December 31, 2021

642

104.5

(1,454)

-

(1,500)

-

(1,615)

-

December 31, 2020

314

(75.9)

(1,674)

-

(1,723)

-

(2,095)

-

Basic earnings

Diluted earnings

Rate of return

Ordinary profit

Operating profit

per share

per share

on equity

to total assets

to net sales

Fiscal year ended

Yen

Yen

%

%

%

December 31, 2021

(95.50)

-

(57.9)

(42.3)

-

December 31, 2020

(145.58)

-

(77.0)

(48.0)

-

(Reference) Equity in

earnings of affiliates:

Fiscal year ended December 31, 2021: ¥- million

Fiscal year ended December 31, 2020: ¥- million

(2) Financial Position

Total assets

Net assets

Equity ratio

Net assets per share

Million yen

Million yen

%

Yen

As of December 31, 2021

4,291

3,593

83.6

206.86

As of December 31, 2020

2,796

2,003

71.4

136.43

(Reference) Equity: As of December 31, 2021: ¥3,586 million As of December 31, 2020: ¥1,995 million

(3) Cash Flows

Cash flows from

Cash flows from

Cash flows from

Cash and

cash equivalents

operating activities

investing activities

financing activities

at end of period

Fiscal year ended

Million yen

Million yen

Million yen

Million yen

December 31, 2021

(1,741)

(0)

3,091

3,209

December 31, 2020

(1,465)

(37)

242

1,822

2. Dividends

Annual dividends

Total

Payout ratio

Dividends to

1st

2nd

3rd

Year-end

Total

dividends

net assets

quarter-end

quarter-end

quarter-end

Fiscal year ended

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

-

0.00

-

0.00

0.00

-

-

-

December 31, 2020

Fiscal year ended

-

0.00

-

0.00

0.00

-

-

-

December 31, 2021

Fiscal year ending

December 31, 2022

-

0.00

-

0.00

0.00

-

(Forecast)

3. Financial Results Forecast for the Fiscal Year Ending December 31, 2022 (January 1, 2022 to December 31, 2022)

(% indicates changes from the previous corresponding period for the full year.)

Net sales

Operating profit

Ordinary profit

Profit

Basic earnings

per share

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Yen

Fiscal year

1,000

155.7

(1,600)

-

(1,600)

-

(1,600)

-

(94.59)

* Notes:

  1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
    1. Changes in accounting policies due to the revision of accounting standards: No
    2. Changes in accounting policies other than 1) above: No
    3. Changes in accounting estimates: No
    4. Retrospective restatement: No
  2. Total number of issued shares (common shares)
    1. Total number of issued shares at the end of the period (including treasury shares): December 31, 2021: 17,405,200 shares
      December 31, 2020: 14,641,900 shares
    2. Total number of treasury shares at the end of the period:

December 31, 2021: 68,494 shares

December 31, 2020: 14,462 shares

3) Average number of shares during the period:

Fiscal year ended December 31, 2021: 16,915,148 shares

Fiscal year ended December 31, 2020: 14,391,621 shares

* These financial results are outside the scope of audit by certified public accountants or an audit corporation.

  • Explanation of the proper use of financial results forecast and other notes(Note regarding forward-looking statements, etc.)

The earnings forecasts and other forward-looking statements herein are based on information available to the Company at the time of the release of these materials and certain assumptions deemed reasonable, and do not represent a commitment from the Company that they will be achieved. In addition, actual financial results, etc. may differ significantly due to a wide range of factors. For the assumptions used in forecasting financial results and notes regarding the use of financial forecasts, please see "1. Overview of Business Results, etc. (4) Future Outlook" on page 3 of the supplementary material.

Table of Contents

1. Overview of Business Results, etc. ................................................................................................................ 2

(1)

Overview of Business Results for the Fiscal Year Under Review ..............................................................

2

(2)

Overview of Financial Position for the Fiscal Year Under Review ............................................................

2

(3)

Overview of Cash Flows for the Fiscal Year Under Review ......................................................................

3

(4)

Future Outlook ...........................................................................................................................................

3

(5)

Basic Policy on Profit Distribution and Dividends for the Fiscal Year Under Review and Next Fiscal

Year ............................................................................................................................................................

4

2. Management Policies ......................................................................................................................................

5

(1)

Basic Policy on Management .......................................................................................................................

5

(2) Target Business Indicators............................................................................................................................

5

(3)

Medium- to Long-term Management Strategies ..........................................................................................

5

(4)

Issues to be Addressed ................................................................................................................................

6

3. Basic Stance Concerning Choice of Accounting Standards .............................................................................

8

4. Financial Statements and Primary Notes..........................................................................................................

9

(1)

Balance Sheets ............................................................................................................................................

9

(2)

Statements of Income ...............................................................................................................................

11

(3)

Detailed Schedule of Manufacturing Cost .................................................................................................

12

(4)

Statements of Changes in Equity................................................................................................................

13

(5)

Statements of Cash Flows ..........................................................................................................................

15

(6)

Notes to Financial Statements ....................................................................................................................

16

(Notes on going concern assumption) ......................................................................................................

16

(Significant accounting policies) ..............................................................................................................

16

(Additional information) ..........................................................................................................................

17

(Equity in earnings (losses) of affiliates if equity method is applied) ......................................................

17

(Segment information, etc.) ......................................................................................................................

18

(Per share information) ............................................................................................................................

20

5. Supplemental Information ..............................................................................................................................

21

(1)

Research and development activities .......................................................................................................

21

1

1. Overview of Business Results, etc.

(1) Overview of Business Results for the Fiscal Year Under Review

The Japanese economy during the fiscal year ended December 31, 2021 deteriorated rapidly as economic activities slowed down globally due to the global COVID-19 pandemic. Thanks to a series of economic stimulation policies by the government, corporate performance and employment situation once showed recovery signs in general after the lifting of the state of emergency, but the outlook of the global economy became uncertain again due to another increase in infections caused by the Omicron variant.

The trends have had a significant impact on the development of new drugs in the field of pharmaceutical research and development, where the treatment of COVID-19 patients has been prioritized and clinical trials for new drugs have been delayed globally.

Under these circumstances, the Company has been pursuing a vision of "Dedicating power to future cancer treatments, and Leaving our footprint in the history of cancer treatment through those achievements.", increased management efficiency and actively expanded its research, development and licensing activities.

In particular, the Company is promoting research, development, and licensing activities with a focus on Telomelysin (OBP-301) virotherapy for cancer and OBP-2011 for the treatment of COVID-19. In addition, concerning OBP-601 (Censavudine), a nucleoside reverse transcriptase inhibitor, Transposon Therapeutics, Inc. (hereinafter "Transposon") is conducting clinical trials at its own full expense based on a license agreement.

The Company was previously composed of two reportable segments classified as the "pharmaceutical business" and the "diagnostic business." However, since more than 99% of net sales of the Company are from the pharmaceutical business and the trend is expected to continue, the Company changed the method of performance management and changed to a single segment of the "drug discovery business" from the fiscal year under review. Information by segment is therefore omitted.

For details of the Company's activities, please refer to "5. Supplemental Information (1) Research and development activities."

As a result, for the fiscal year ended December 31, 2021, net sales were ¥642,494 thousand (net sales of ¥314,179 thousand in the previous fiscal year), and operating loss was ¥1,454,554 thousand (operating loss of ¥1,674,652 thousand in the previous fiscal year). In addition, the Company recorded interest income of ¥494 thousand, foreign exchange gains of ¥37,369 thousand, and other items as non-operating income, and interest expenses of ¥4,169 thousand, amortization of restricted stock remuneration of ¥68,525 thousand, share acquisition rights issuance costs of ¥413 thousand, share issuance costs of ¥11,652 thousand, and other items as non-operating expenses. Ordinary loss was ¥1,500,888 thousand (ordinary loss of ¥1,723,537 thousand in the previous fiscal year). A total extraordinary loss of ¥110,825 thousand was recorded, primarily due to a loss on valuation of shares of subsidiaries and associates of Precision Corporation, a developer of vaccines for emerging infectious diseases, and an impairment loss on the Company's capital investment in TelomeScan, including fluorescence microscopes. As a result, net loss was ¥1,615,439 thousand (net loss of ¥2,095,087 thousand in the previous fiscal year).

(2) Overview of Financial Position for the Fiscal Year Under Review

1) Status of Assets, Liabilities and Net Assets

Assets at the end of the fiscal year under review were ¥4,291,876 thousand (53.5% increase compared with the end of the previous fiscal year), owing partly to an increase in cash and deposits. Liabilities were ¥697,884 thousand (12.0% decrease compared with the end of the previous fiscal year), owing partly to a decrease in accounts payable - other. Net assets were ¥3,593,992 thousand (79.4% increase compared with the end of the previous fiscal year), owing to capital increase through issuance of new shares, loss incurred and other factors.

2

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