ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The accompanying notes are an integral part of these condensed consolidated financial statements.
The accompanying notes are an integral part of these condensed consolidated financial statements.
The accompanying notes are an integral part of these condensed consolidated financial statements.
The accompanying notes are an integral part of these condensed consolidated financial statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2021
(UNAUDITED)
Note 1. The Company and Summary of Significant Accounting Policies
BASIS OF PRESENTATION AND GOING CONCERN
The amounts in the notes are shown in thousands of EURO, unless otherwise noted, and rounded to the nearest thousand except for share and per share amounts.
The accompanying interim period consolidated financial statements of Mymetics Corporation (the “Company”) set forth herein have been prepared by the Company pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosure normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such SEC rules and regulations. The interim period consolidated financial statements should be read together with the audited financial statements and the accompanying notes included in the Company’s latest annual report on Form 10-K for the fiscal year ended December 31, 2020.
The accompanying financial statements of the Company are unaudited. However, in the opinion of the Company, the unaudited condensed consolidated financial statements contained herein contain all adjustments necessary to present a fair statement of the results of the interim periods presented. All adjustments made during the three and nine-month period ending September 30, 2021 were of a normal and recurring nature.
The Company was created for the purpose of engaging in vaccine research and development. Its main research efforts in the beginning have been concentrated in the prevention and treatment of the AIDS virus and malaria. The Company has established a network which enables it to work with education centers, research centers, pharmaceutical laboratories and biotechnology companies. Besides the HIV and malaria vaccine candidates, the Company additionally has generated preclinical data for the following vaccines: Herpes Simplex and Respiratory Syncytial Virus (“RSV”), neither of which is currently being developed. The company also has clinical data for an intranasal influenza vaccine for the elderly which has finished a Phase I clinical trial and is currently on hold. As of September 30, 2021, the Company is working on several research projects with commercial partners for immunotherapy in the field oncology and for some infectious diseases with academic partners. Since April 2020, the Company has additionally started to work on the development of a virosome-based vaccine to prevent Covid-19, the disease caused by the SARS-CoV-2 virus. For the Covid-19 vaccine candidates, the Company is collaborating with leading academic institutions, such as Baylor College of Medicine in Texas, the Amsterdam medical Center (AMC) of the University of Amsterdam in the Netherlands and the University Hospital in Bern, Switzerland.
As of September 30, 2021, the Company was engaged in the pre-clinical testing of its Covid-19 and HIV vaccine candidates, but a commercially viable product is not expected for several more years. However, the Company generated some revenue through collaboration and grant agreements.
These consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company has experienced negative cash flows from operations and significant losses since inception resulting in an accumulated deficit of €96,521 at September 30, 2021. Further, the Company’s current liabilities exceed its current assets by €65,485 as of September 30, 2021, and there is no assurance that cash will become available to pay current liabilities in the near term. Management is seeking additional financing but there can be no assurance that management will be successful in any of those efforts. These conditions raise substantial doubt about our ability to continue as a going concern within one year from the issuance of the financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
LEASES
The Company follows the guidance in ASC 842, which established a right-of-use (“ROU”) model requiring lessees to record a right-of-use (“ROU”) asset and lease obligations on the balance sheet for all leases with terms longer than 12 months. The Company determines if an arrangement is a lease at inception. Where an arrangement is a lease, the Company determines if it is an operating lease or a finance lease. At lease commencement, the Company records a lease liability and corresponding ROU asset. Lease liabilities represent the present value of our future lease payments over the expected lease term which includes options to extend or terminate the lease when it is reasonably certain those options will be exercised. The present value of the Company’s lease liability is determined using its incremental collateralized borrowing rate at lease inception. ROU assets represent its right to control the use of the leased asset during the lease and are recognized in an amount equal to the lease liability for leases with an initial term greater than 12 months. Over the lease term (operating leases only), the Company uses the effective interest rate method to account for the lease liability as lease payments are made and the ROU asset is amortized to consolidated statement of operations in a manner that results in straight-line expense recognition. The Company does not apply lease recognition requirements for short-term leases. Instead, the Company recognizes payments related to these arrangements in the consolidated statement of operations as lease costs on a straight-line basis over the lease term.
IMPACT OF THE NOVEL CORONAVIRUS
On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency because of a new strain of coronavirus originating in Wuhan, China (the “COVID-19 outbreak”) and the risks to the international community as the virus spreads globally beyond its point of origin. In March 2020, the WHO classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally.
The impact of the COVID-19 outbreak continues to evolve as of the date of this report. As such, it is uncertain as to the full magnitude that the pandemic will have on the Company’s financial condition, liquidity, and future results of operations.
Management is actively monitoring the global situation on its financial condition, liquidity, operations, scientific collaborations, suppliers, industry, and workforce. Given the daily evolution of the COVID-19 outbreak and the global responses to curb its spread, the Company is not able to estimate the effects of the COVID-19 outbreak on its results of operations, financial condition, or liquidity for fiscal year 2021.
The Company is dependent on its workforce to deliver and advance its research. Developments such as physical distancing and working from home directives have and will continue to impact the Company’s ability to deploy its workforce effectively. While expected to be temporary, prolonged workforce disruptions may negatively impact future revenues in fiscal year 2021 and the Company’s overall liquidity.
The Company is dependent on its partners in certain projects, such as the University of Louisiana at Lafayette (“ULL”) for the NIH funded project to maintain the agreed timelines and execute their tasks. Developments such as social distancing and shelter-in-place directives and lock-down directives have and will continue to impact the Company’s ability to execute on project plans and research objectives effectively. While expected to be temporary, prolonged disruptions in collaboration projects may negatively impact funding in fiscal year 2021 and the Company’s overall liquidity.
Although the Company cannot estimate the length or gravity of the impact of the COVID-19 outbreak at this time, if the pandemic continues, it may have a material adverse effect on the Company’s results of future operations, financial position, and liquidity in fiscal year 2021.
CORONAVIRUS AID, RELIEF AND ECONOMIC SECURITY ACT
On March 27, 2020, the U.S. Government enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law. The CARES Act includes various income and payroll tax provisions. The Company has analyzed the tax provisions of the CARES Act and determined they have no significant financial impact to the condensed financial statements. The Company has no intention of taking advantage of other benefits provided by the CARES Act but will continue to evaluate the impact on the Company’s financial position.
PRINCIPLES OF CONSOLIDATION
The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. Significant intercompany accounts and transactions have been eliminated.
NEW ACCOUNTING PRONOUNCEMENT
In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. Specifically, ASU 2020-06 simplifies accounting for the issuance of convertible instruments by removing major separation models required under current GAAP. In addition, the ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and simplifies the diluted earnings per share (EPS) calculation in certain areas. ASU 2020-06 will be effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, beginning in fiscal years which begin after December 15, 2020. The FASB has specified that an entity should adopt the guidance as of the beginning of its annual fiscal year. The Company adopted this standard effective January 1, 2021, and the adoption had no impact on the consolidated financial statements.
FOREIGN CURRENCY TRANSLATION
The Company translates non-Euro assets and liabilities of its subsidiaries at the rate of exchange at the balance sheet date. Revenues and expenses are translated at the average rate of exchange throughout the period. Unrealized gains or losses from these translations are reported as a separate component of comprehensive income. Transaction gains or losses are included in foreign exchange (gain) loss in the consolidated statements of comprehensive loss. The translation adjustments do not recognize the effect of income tax because the Company expects to reinvest the amounts indefinitely in operations. The Company’s reporting currency is the Euro because substantially all of the Company’s activities are conducted in Europe.
CASH
The Company consider all highly liquid investments purchased with maturities of three months or less to be cash equivalents. Cash deposits are occasionally in excess of insured amounts.
REVENUE RECOGNITION
The Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of ASU No. 2014-19, Revenue from Contracts with Customer (“Topic 606”), the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, the Company assess the goods or services promised within each contract and determine those that are performance obligations and assess whether each promised good or service is distinct. The Company then recognize as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.
The Company has concluded that government grants are not within the scope of Topic 606, as they do not meet the definition of a contract with a “customer”. The Company concluded the definition of a contract with a “customer” was not met as the counterparty to the government grants has not contracted to obtain goods or services and thus the contracts are not considered to have commercial substance. Government grants provide the Company with payments for certain types of expenditures related to research and development activities over a contractually defined period. Revenue from government grants is recognized in the period during which the related costs are incurred, provided that the applicable conditions under the government contracts have been met.
NIH
On April 29, 2019, the National Institutes of Health (“NIH”) awarded the Company and Texas Biomedical Research Institute (“Texas Biomed”) a five-year grant for the project called “Cold Chain-independent, Needle-free Mucosal Virosomal Vaccine to Prevent HIV-1 Acquisition at Mucosal Levels”. The project started on May 1, 2019 and is planned for five years. The overall budget related to the project is USD 8,850, with USD 1,213 approved for the first year, USD 727 approved for the second year, USD 1,856 approved for the third year and USD 1,720 approved for the current ongoing fourth year ending on April 30, 2022.
The amounts mentioned in the following statements are purely related to the Company and not to the other partners in the project: The overall portion of the grant allocated to the Company is USD 5,930, with USD 743 approved for the first year, USD 449 approved for the second year, USD 1,052 approved for the third year and USD 1,078 approved for the current ongoing fourth year ending on April 30, 2022. It was initially co-led by Texas Biomed, but due to the move of Dr. Ruth Ruprecht, the Co-Principal Investigator, to the University of Louisiana at Lafayette (“ULL”) at the end of 2019, ULL has become the co-lead with Mymetics for this project. To date, the Company has recognized €1,547 of grant revenue from the NIH, of which €372 has been recognized during the nine months ended September 30, 2021. First results are expected to be reported in the last quarter of 2021.
The project has the objective to prepare the Company’s promising HIV-1 vaccine candidate for clinical trials, by first executing a non-human primate (“NHP”) study, where the test subjects will be receiving Mymetics’ virosome based HIV-1 vaccine candidate by several intra-muscular and intra-nasal applications, followed by rectal challenges. As of September 30, 2021, Mymetics has successfully produced two sets of virosome based vaccines and the NHPs have received two intramuscular vaccinations and three intranasal vaccinations. The vaccinations were well tolerated and there were no safety issues. During 2021 the vaccinated NHPs will start to receive rectal challenges. The vaccine is created to induce protective mucosal antibodies acting as a frontline defense against sexual HIV transmission. This awarded grant from the NIH can continue some of the developments that were achieved during the European Horizon 2020 project.
Option to License Agreement – ANERGIS SA
In December 2018, the Company announced that the success criteria of the Research and Option to License Agreement with Anergis SA (“Anergis”) had been met. Under the terms of the Research Agreement, a pre-clinical study program evaluated the immunogenicity profile of the Anergis’ peptides designed to treat birch allergy when presented on Mymetics’ proprietary virosomes, with or without undisclosed TLR ligands or other adjuvants, and these results were compared to Anergis’ AllerT product combination. In October 2019 Anergis started a new evaluation study in collaboration with Stallergenes Greer SA, in which the Mymetics COP virosomes were evaluated in a preclinical study. In May 2020 the Company announced that Stallergenes Greer and Anergis reported the results of the joint research study (the second study) evaluating the effects of the second generation Contiguous Overlapping Peptides (COP) allergen immunotherapy in a therapeutic model of birch allergy, with the aim of shortening the AIT administration schemes. In the second study, conducted by Stallergenes Greer, COP-Virosomes, and COP and virosomes alone were compared to a placebo group in an in-house therapeutic model of birch pollen allergy. Recombinant Bet v 1 alone (the major allergen of birch pollen) and birch extract were also used as controls in this setting. COP-virosomes were the only synthetic therapy able to fully reverse asthma symptoms as well as lung inflammation (i.e., significant reduction in eosinophils in bronchial fluids). Pro-allergic immune responses also decreased with COP-virosome therapy with a significant decrease of the IL-4, a Th2 cytokine.
In January 2021, following the two successful studies with its virosome platform, Mymetics announced the acceptance of its joint publication in the scientific journal Clinical & Experimental Allergy with Stallergenes Greer SA and Anergis SA, with the title: Bet v 1 contiguous overlapping peptides anchored to virosomes with TLR4 agonist enhance immunotherapy efficacy in mice. Since February 1, 2021, Anergis SA has moved into liquidation as it was not able to raise sufficient funds to continue.
RECEIVABLES
Receivables are stated at their outstanding principal balances. Management reviews the collectability of receivables on a periodic basis and determines the appropriate amount of any allowance. There was no allowance necessary at September 30, 2021 or December 31, 2020. The Company writes off receivables to the allowance when management determines that a receivable is not collectible. The Company may retain a security interest in the products sold.
PROPERTY AND EQUIPMENT
Property and equipment is recorded at cost and is depreciated over its estimated useful life on straight-line basis from the date placed in service. Estimated useful lives are usually taken as three years.
IMPAIRMENT OF LONG-LIVED ASSETS
Long-lived assets, which include property and equipment, are assessed for impairment whenever events or changes in circumstances indicate the carrying amount of the asset may not be recoverable. The impairment testing involves comparing the carrying amount to the forecasted undiscounted future cash flows generated by that asset. In the event the carrying value of the assets exceeds the undiscounted future cash flows generated by that asset and the carrying value is not considered recoverable, impairment exists. An impairment loss is measured as the excess of the asset’s carrying value over its fair value, calculated using a discounted future cash flow method. An impairment loss would be recognized in net income (loss) in the period that the impairment occurs.
GOODWILL
Goodwill represents the excess of purchase price over the value assigned to the net tangible and identifiable intangible assets of a business acquired. The Company typically performs its annual goodwill impairment test effective as of April 1 of each year, unless events or circumstances indicate impairment may have occurred before that time. The Company assesses qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. After assessing qualitative factors, the Company determined that no further testing was necessary. If further testing was necessary, the Company would determine the fair value of each reporting unit and compare the fair value to the reporting unit’s carrying amount. The Company has one reporting unit.
RESEARCH AND DEVELOPMENT
Research and development costs are expensed as incurred.
WITHHOLDING TAXES
On March 10, 2021, the Swiss Federal tax administration conducted a withholding tax audit on Mymetics SA’s financial statements for the years 2015 to 2019. At the end of the tax audit, the tax inspector concluded that a portion of the intercompany interest expenses related to the subordinated loan from Mymetics Corporation to Mymetics SA could be considered as a hidden dividend distribution and therefore subject to Swiss withholding tax. The tax inspector encouraged the Company to file the relevant Swiss withholding tax forms to benefit from the double tax treaty between Switzerland and the United States. All required documentation has been sent, assessed and approved by the Swiss Federal tax administration. The portion of the intercompany interest expenses related to the subordinated loan from Mymetics Corporation to Mymetics SA is considered as a hidden dividend distribution and therefore subject to Swiss withholding tax at a reduced tax rate of 5% and based on the double tax treaty in force between Switzerland and the United State of America. As Mymetics SA’s audited financial statements for the year ended December 31, 2020, have been signed before March 10, 2021, and, in agreement with the Swiss audit firm, Mymetics SA made a payment of €27 to the Swiss tax office on behalf of the Company in the first quarter of 2021, which represents 5% withholding tax due as of December 30, 2020. The Company expects to receive the final statement by the end of the year for any late interests due to the Swiss Federal tax administration.
TAXES ON INCOME
The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. In estimating future tax consequences, the Company generally considers all expected future events other than enactments of changes in the tax laws or rates.
The Company reports a liability, if any, for unrecognized tax benefits resulting from uncertain income tax positions taken or expected to be taken in an income tax return. Estimated interest and penalties, if any, are recorded as a component of interest expense and other expense, respectively.
The Company has not recorded any liabilities for uncertain tax positions or any related interest and penalties at September 30, 2021 nor December 31, 2020. The Company’s United States tax returns are open to audit for the years ended December 31, 2015 to 2019. The returns for the Swiss subsidiary, Mymetics S.A., are open to audit for the year ended December 31, 2020. The returns for the Netherlands subsidiaries, Bestewil B.V. and Mymetics B.V., are open to audit for the year ended December 31, 2020.
EARNINGS PER SHARE
Basic earnings per share is computed by dividing net income or loss attributable to common shareholders by the weighted average number of common shares outstanding in the period. Diluted earnings per share takes into consideration common shares outstanding (computed under basic earnings per share) and potentially dilutive securities. For the periods ended September 30, 2021 and 2020, options and convertible debt were not included in the computation of diluted earnings per share because their effect would be anti-dilutive due to net losses incurred under the treasury stock method.
For the three and nine months ended September 30, 2021, the basic weighted and diluted average number of shares was 303,757,622. The total potential number of shares issuable of 757,030,713 at September 30, 2021 includes 731,280,713 potential issuable shares related to convertible loans, and 25,750,000 potential issuable shares related to outstanding stock options granted to employees.
For the three and nine months ended September 30, 2020, the basic weighted and diluted average number of shares was 303,757,622. The total potential number of shares issuable of 720,431,036 at September 30, 2020 includes 694,681,036 potential issuable shares related to convertible loans, and 26,750,000 potential issuable shares related to outstanding stock options granted to employees.
PREFERRED STOCK
The Company has authorized 5,000,000 shares of preferred stock that may be issued in several series with varying dividend, conversion and voting rights. No preferred shares are issued or outstanding at September 30, 2021 or December 31, 2020.
ESTIMATES
The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
FAIR VALUE MEASUREMENTS
Fair value guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include:
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Level 1-
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Quoted prices in active markets for identical assets or liabilities.
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Level 2-
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Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
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Level 3-
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Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
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FAIR VALUES OF FINANCIAL INSTRUMENTS
The Company generally has the following financial instruments: cash, receivables, accounts payable, and notes payable. The carrying value of cash, accounts receivable, and accounts payable, approximates their fair value based on the short-term nature of these financial instruments. Management believes the fair value of the notes payable is reflecting the actual value reported for these instruments.
CONCENTRATIONS
The Company derived 99% and 95% of grant revenue for the nine-month periods ended September 30, 2021 and 2020, from one grantor, respectively. For the period ended December 31, 2020, the Company derived 95% of grant revenue from one partner.
RELATED PARTY TRANSACTIONS
Mr. Ernest M. Stern, the Company’s outside U.S. counsel, is both a director of the Company and is a partner in Culhane Meadows PLLC, the firm retained as legal counsel by the Company. The Company incurred professional fees to the counsel’s law firms totaling €3 and €4 for the three months ended September 30, 2021 and 2020 respectively; and €17 and €26 for the nine months ended September 30, 2021 and 2020, respectively.
Two of the Company’s major shareholders have granted secured convertible notes and short-term convertible notes and promissory notes, which have a total carrying amount of €66,066 including interest due as of September 30, 2021. Conversion prices on the Euro-denominated convertible debt have been fixed to a fixed Euro/US dollar exchange rate.
Note 2. Debt Financing
Certain principal shareholders have granted the Company secured convertible notes (in accordance with the Uniform Commercial Code in the State of Delaware), short term convertible notes and other short-term notes, which have a total carrying value of €66,509 including interest due to date. Interest incurred on these notes since inception has been added to the principal amounts.
The details of the convertible notes and loans are as follows at September 30, 2021:
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Fixed
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Conversion
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Rate
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Lender
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1st-Issue
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Principal
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Duration
|
|
Interest
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Price
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EUR/USD
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Price
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Date
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Amount
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(Note)
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Rate
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(stated)
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Conversion
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Eardley Holding A.G. (1)
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06/23/2006
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€
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164
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(2
|
)
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10% pa
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|
$
|
0.10
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|
N/A
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|
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Anglo Irish Bank S.A.(3)
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10/21/2007
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€
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500
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|
(2
|
)
|
10% pa
|
|
$
|
0.50
|
|
1.4090
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|
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Round Enterprises Ltd.
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12/10/2007
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|
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€
|
1,500
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|
(2
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)
|
10% pa
|
|
$
|
0.50
|
|
1.4429
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|
|
Round Enterprises Ltd.
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|
01/22/2008
|
|
|
€
|
1,500
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|
(2
|
)
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10% pa
|
|
$
|
0.50
|
|
1.4629
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|
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Round Enterprises Ltd.
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|
04/25/2008
|
|
|
€
|
2,000
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|
(2
|
)
|
10% pa
|
|
$
|
0.50
|
|
1.5889
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|
|
Round Enterprises Ltd.
|
|
06/30/2008
|
|
|
€
|
1,500
|
|
(2
|
)
|
10% pa
|
|
$
|
0.50
|
|
1.5380
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|
|
Round Enterprises Ltd.
|
|
11/18/2008
|
|
|
€
|
1,200
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|
(2
|
)
|
10% pa
|
|
$
|
0.50
|
|
1.2650
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|
|
Round Enterprises Ltd.
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|
02/09/2009
|
|
|
€
|
1,500
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|
(2
|
)
|
10% pa
|
|
$
|
0.50
|
|
1.2940
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|
|
Round Enterprises Ltd.
|
|
06/15/2009
|
|
|
€
|
5,500
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|
(2,4
|
)
|
10% pa
|
|
$
|
0.80
|
|
1.4045
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|
|
Eardley Holding A.G.
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|
06/15/2009
|
|
|
€
|
100
|
|
(2,4
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)
|
10% pa
|
|
$
|
0.80
|
|
1.4300
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|
|
Von Meyenburg
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|
08/03/2009
|
|
|
€
|
200
|
|
(2
|
)
|
10% pa
|
|
$
|
0.80
|
|
1.4400
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|
|
Round Enterprises Ltd.
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|
10/13/2009
|
|
|
€
|
2,000
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|
(2
|
)
|
5% pa
|
|
$
|
0.25
|
|
1.4854
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|
|
Round Enterprises Ltd.
|
|
12/18/2009
|
|
|
€
|
2,200
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|
(2
|
)
|
5% pa
|
|
$
|
0.25
|
|
1.4338
|
|
|
Round Enterprises Ltd.
|
|
08/04/2011
|
|
|
€
|
1,035
|
|
(5,6
|
)
|
10% pa
|
|
$
|
0.034
|
|
N/A
|
|
|
Eardley Holding A.G.
|
|
08/04/2011
|
|
|
€
|
259
|
|
(5,6
|
)
|
10% pa
|
|
$
|
0.034
|
|
N/A
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|
|
Round Enterprises Ltd.
|
|
11/08/2011
|
|
|
€
|
400
|
|
(6
|
)
|
10% pa
|
|
$
|
0.034
|
|
1.3787
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|
|
Eardley Holding A.G.
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|
11/08/2011
|
|
|
€
|
100
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|
(6
|
)
|
10% pa
|
|
$
|
0.034
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|
1.3787
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|
|
Round Enterprises Ltd.
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|
02/10/2012
|
|
|
€
|
1,000
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(6
|
)
|
10% pa
|
|
$
|
0.034
|
|
1.3260
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|
|
Eardley Holding A.G.
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|
02/14/2012
|
|
|
€
|
200
|
|
(6
|
)
|
10% pa
|
|
$
|
0.034
|
|
1.3260
|
|
|
Round Enterprises Ltd.
|
|
04/19/2012
|
|
|
€
|
322
|
|
(6
|
)
|
10% pa
|
|
$
|
0.034
|
|
1.3100
|
|
|
Eardley Holding A.G.
|
|
04/19/2012
|
|
|
€
|
80
|
|
(6
|
)
|
10% pa
|
|
$
|
0.034
|
|
1.3100
|
|
|
Round Enterprises Ltd.
|
|
05/04/2012
|
|
|
€
|
480
|
|
(6
|
)
|
10% pa
|
|
$
|
0.034
|
|
1.3152
|
|
|
Eardley Holding A.G.
|
|
05/04/2012
|
|
|
€
|
120
|
|
(6
|
)
|
10% pa
|
|
$
|
0.034
|
|
1.3152
|
|
|
Round Enterprises Ltd.
|
|
09/03/2012
|
|
|
€
|
200
|
|
(6
|
)
|
10% pa
|
|
$
|
0.034
|
|
1.2576
|
|
|
Eardley Holding A.G.
|
|
09/03/2012
|
|
|
€
|
50
|
|
(6
|
)
|
10% pa
|
|
$
|
0.034
|
|
1.2576
|
|
|
Round Enterprises Ltd.
|
|
11/14/2012
|
|
|
€
|
500
|
|
(6
|
)
|
10% pa
|
|
$
|
0.034
|
|
1.2718
|
|
|
Eardley Holding A.G.
|
|
12/06/2012
|
|
|
€
|
125
|
|
(6
|
)
|
10% pa
|
|
$
|
0.034
|
|
1.3070
|
|
|
Round Enterprises Ltd.
|
|
01/16/2013
|
|
|
€
|
240
|
|
(6
|
)
|
10% pa
|
|
$
|
0.034
|
|
1.3318
|
|
|
Eardley Holding A.G.
|
|
01/16/2013
|
|
|
€
|
60
|
|
(6
|
)
|
10% pa
|
|
$
|
0.034
|
|
1.3318
|
|
|
Round Enterprises Ltd.
|
|
03/25/2013
|
|
|
€
|
400
|
|
(6
|
)
|
10% pa
|
|
$
|
0.037
|
|
1.2915
|
|
|
Eardley Holding A.G.
|
|
04/14/2013
|
|
|
€
|
150
|
|
(6
|
)
|
10% pa
|
|
$
|
0.034
|
|
1.3056
|
|
|
Round Enterprises Ltd.
|
|
04/14/2013
|
|
|
€
|
600
|
|
(6
|
)
|
10% pa
|
|
$
|
0.034
|
|
1.3056
|
|
|
Eardley Holding A.G.
|
|
05/15/2013
|
|
|
€
|
170
|
|
(6
|
)
|
10% pa
|
|
$
|
0.037
|
|
1.2938
|
|
|
Round Enterprises Ltd.
|
|
05/15/2013
|
|
|
€
|
680
|
|
(6
|
)
|
10% pa
|
|
$
|
0.037
|
|
1.2938
|
|
|
Eardley Holding A.G.
|
|
06/24/2013
|
|
|
€
|
60
|
|
(6
|
)
|
10% pa
|
|
$
|
0.025
|
|
1.3340
|
|
|
Round Enterprises Ltd.
|
|
06/24/2013
|
|
|
€
|
240
|
|
(6
|
)
|
10% pa
|
|
$
|
0.025
|
|
1.3340
|
|
|
Eardley Holding A.G.
|
|
08/05/2013
|
|
|
€
|
80
|
|
(6
|
)
|
10% pa
|
|
$
|
0.018
|
|
1.3283
|
|
|
Round Enterprises Ltd.
|
|
08/05/2013
|
|
|
€
|
320
|
|
(6
|
)
|
10% pa
|
|
$
|
0.018
|
|
1.3283
|
|
|
Eardley Holding A.G.
|
|
03/01/2017
|
|
|
€
|
230
|
|
(7
|
)
|
2.5% pa
|
|
|
N/A
|
|
N/A
|
|
|
Round Enterprises Ltd.
|
|
03/01/2017
|
|
|
€
|
920
|
|
(7
|
)
|
2.5% pa
|
|
|
N/A
|
|
N/A
|
|
|
Eardley Holding A.G.
|
|
10/18/2017
|
|
|
€
|
230
|
|
(7
|
)
|
2.5% pa
|
|
|
N/A
|
|
N/A
|
|
|
Round Enterprises Ltd.
|
|
10/18/2017
|
|
|
€
|
920
|
|
(7
|
)
|
2.5% pa
|
|
|
N/A
|
|
N/A
|
|
|
Eardley Holding A.G.
|
|
06/01/2018
|
|
|
€
|
160
|
|
(8
|
)
|
2.5% pa
|
|
|
N/A
|
|
N/A
|
|
|
Round Enterprises Ltd.
|
|
06/01/2018
|
|
|
€
|
640
|
|
(8
|
)
|
2.5% pa
|
|
|
N/A
|
|
N/A
|
|
|
Eardley Holding A.G.
|
|
11/10/2018
|
|
|
€
|
160
|
|
(8
|
)
|
2.5% pa
|
|
|
N/A
|
|
N/A
|
|
|
Round Enterprises Ltd.
|
|
11/10/2018
|
|
|
€
|
640
|
|
(8
|
)
|
2.5% pa
|
|
|
N/A
|
|
N/A
|
|
|
Eardley Holding A.G.
|
|
06/15/2019
|
|
|
€
|
120
|
|
(9
|
)
|
2.5% pa
|
|
|
N/A
|
|
N/A
|
|
|
Round Enterprises Ltd.
|
|
06/15/2019
|
|
|
€
|
480
|
|
(9
|
)
|
2.5% pa
|
|
|
N/A
|
|
N/A
|
|
|
Eardley Holding A.G.
|
|
12/20/2019
|
|
|
€
|
120
|
|
(10
|
)
|
2.5% pa
|
|
|
N/A
|
|
N/A
|
|
|
Round Enterprises Ltd.
|
|
12/20/2019
|
|
|
€
|
480
|
|
(10
|
)
|
2.5% pa
|
|
|
N/A
|
|
N/A
|
|
|
Eardley Holding AG
|
|
06/15/2020
|
|
|
€
|
220
|
|
(11
|
)
|
2.5% pa
|
|
|
N/A
|
|
N/A
|
|
|
Round Enterprises Ltd.
|
|
06/15/2020
|
|
|
€
|
880
|
|
(11
|
)
|
2.5% pa
|
|
|
N/A
|
|
N/A
|
|
|
Eardley Holding AG
|
|
12/15/2020
|
|
|
€
|
170
|
|
(12
|
)
|
2.5% pa
|
|
|
N/A
|
|
N/A
|
|
|
Round Enterprises Ltd.
|
|
12/15/2020
|
|
|
€
|
680
|
|
(12
|
)
|
2.5% pa
|
|
|
N/A
|
|
N/A
|
|
|
Eardley Holding AG
|
|
08/15/2021
|
|
|
€
|
240
|
|
(13
|
)
|
2.5% pa
|
|
|
N/A
|
|
N/A
|
|
|
Round Enterprises Ltd.
|
|
08/15/2021
|
|
|
€
|
960
|
|
(13
|
)
|
2.5% pa
|
|
|
N/A
|
|
N/A
|
|
|
Total Short Term Principal Amounts
|
|
|
|
|
€
|
35,985
|
|
|
|
|
|
|
|
|
|
|
|
Accrued Interest
|
|
|
|
|
€
|
30,524
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LOANS AND NOTES
|
|
|
|
|
€
|
66,509
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Private investment company of Dr. Thomas Staehelin, member of the Board of Directors and of the Audit Committee of the Company. Face value is stated in U.S. dollars at $190.
|
|
|
|
|
(2)
|
This maturity date is automatically prolonged for periods of three months, unless called for repayment.
|
|
|
|
|
(3)
|
Renamed Hyposwiss Private Bank Genève S.A. and acting on behalf of Round Enterprises Ltd. which is a major shareholder.
|
|
|
|
|
(4)
|
The loan is secured against 2/3rds of the IP assets of Bestewil Holding BV and against all property of the Company.
|
|
|
|
|
(5)
|
The face values of the loans are stated in U.S. dollars at $1,200 and $300, respectively.
|
|
|
|
|
(6)
|
This maturity date is automatically prolonged for periods of three months, unless called for repayment. The conversion price per share is determined by the lower of (i) reducing by 10% the price per share of the Company’s common stock paid by the investors in connection with an investment in the Company of not less than US$20,000, or (ii) at the fixed conversion price using a fixed exchange rate which are noted in the table above. The convertible note holder has the right to convert at any time prior to the maturity date, at the convertible note holder’s option, prior to the repayment of the outstanding balance under the note by the Company, to convert the unpaid outstanding principal balance and accrued interest, in whole or in part, into common stock at the fixed conversion price as stated in the contract.
|
|
|
|
|
(7)
|
On March 1, 2017, Round Enterprises Ltd. and Eardley Holding AG each provided two promissory Notes for a total of €1,840 and €460, respectively, with a 2.5% interest per annum and a maturity date of March 1, 2018. The first 50% of the promissory Notes of €920 and €230, respectively, were provided immediately. The second 50% of the promissory notes of €920 and €230, respectively, were provided on October 18, 2017, with a 2.5% interest per annum and a maturity date of October 18, 2018. Both Round Enterprises Ltd. And Eardley Holding AG have agreed to amend the maturity date of these promissory notes to follow the same terms of the other convertible loans. Therefore, the maturity date of the promissory notes is amended to be the later of (i) June 30, 2018, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes. The amendments were accounted for as modifications in the consolidated financial statements.
|
|
|
|
|
(8)
|
On June 1, 2018, Round Enterprises Ltd. and Eardley Holding AG each provided two promissory Notes for a total of €1,280 and €320 in two tranches, respectively, with a 2.5% interest per annum. The first tranche of the promissory Notes of €640 and €160, respectively, were provided immediately. The second tranche of the promissory notes of €640 and €160, respectively, were provided on November 10, 2018, with a 2.5% interest per annum. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) June 30, 2019, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes.
|
|
|
|
|
(9)
|
On June 15, 2019, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €600 with a 2.5% interest per annum. The promissory Notes of €480 and €120, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) December 31, 2020, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes.
|
|
|
|
|
(10)
|
On December 20, 2019, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €600 with a 2.5% interest per annum. The promissory Notes of €480 and €120, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) June 30, 2020, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes.
|
|
|
|
|
(11)
|
On June 15, 2020, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €1,100 with a 2.5% interest per annum. The promissory Notes of €880 and €220, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) September 30, 2020, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes.
|
|
(12)
|
On December 15, 2020, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €850 with a 2.5% interest per annum. The promissory Notes of €680 and €170, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) March 31, 2021, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes.
|
|
|
|
|
(13)
|
On August 15, 2021, Round Enterprises Ltd. and Eardley Holding AG each provided promissory Notes for a total of €1,200 with a 2.5% interest per annum. The promissory Notes of €980 and €240, respectively, were provided immediately. The maturity date of these promissory notes to follow the same terms of other convertible loans and is the later of (i) December 31, 2020, or (ii) the end of a subsequent calendar quarter in which the Company receives a written request from the lender for repayment of the unpaid principal and accrued interest due under the Notes.
|
On April 2, 2020, the Swiss entity, Mymetics SA, received a Federal credit line of Chf 168 (€156) in relation with the Covid-19 pandemic. This credit line applies for five years and is fully guaranteed by the Swiss Confederation via guaranteed organizations. The interest rate is currently at 0 percent until March 31, 2021. The Swiss Confederation has the right to adjust the interest rate to the market rate. The first revision took place as of April 1, 2021, but no modification was applied.
Certain of the secured convertible notes have conversion features that should be bifurcated from the debt and recorded at fair value; however, as of September 30, 2021, and December 31, 2020, the probability of the conversion features being exercised was zero. For this reason, the conversion features are not required to be bifurcated from the debt as the fair value is zero at September 30, 2021, and December 31, 2020.
Note 3. Commitments
The facility lease agreement for Epalinges, Switzerland, is automatically renewed month by month with a notice period of three months. The related rent is paid monthly in the amount of €4 and is considered a short-term lease. As the term is less than twelve months, the lease is outside of the scope of ASC 842 and not accounted for on the balance sheet due to the Company’s policy elections.
The facility lease agreement for Leiden, The Netherlands, runs until March 31, 2022, and can be terminated with a six month notice as of September 30, 2021. The related rent is paid monthly in the amount of €9. The Company does not have any other operating lease for its research and development facilities, corporate headquarter, offices and equipment.
