Oculis AG(OCS) - 2024 Q4 - Annual Report

Financial Position - Total assets increased to CHF 120,353 thousand as of December 31, 2024, up from CHF 114,353 thousand in 2023, representing a growth of 5.5%[28] - Shareholders' equity decreased to CHF 73,383 thousand in 2024 from CHF 93,728 thousand in 2023, a decline of 21.7%[28] - Cash and cash equivalents decreased to CHF 27,708 thousand in 2024 from CHF 38,327 thousand in 2023, a reduction of 27.8%[28] - Total non-current assets rose to CHF 15,456 thousand in 2024, compared to CHF 13,338 thousand in 2023, an increase of 15.9%[28] - Current liabilities surged to CHF 44,235 thousand in 2024, up from CHF 19,088 thousand in 2023, marking an increase of 132.5%[28] - Long-term lease liabilities increased to CHF 865 thousand in 2024 from CHF 431 thousand in 2023, a rise of 100.5%[28] - The Group's total liabilities rose to CHF 46,970 thousand in 2024, compared to CHF 20,625 thousand in 2023, an increase of 128.3%[28] - The accumulated losses increased to CHF 285,557 thousand in 2024 from CHF 199,780 thousand in 2023, reflecting a rise of 43.0%[28] Income and Expenses - Grant income decreased to CHF 686,000 in 2024 from CHF 883,000 in 2023, a decline of 22.3%[29] - Research and development expenses increased significantly to CHF 52,083,000 in 2024, up 77.5% from CHF 29,247,000 in 2023[29] - Operating loss for the period was CHF 73,204,000 in 2024, a slight improvement from CHF 80,714,000 in 2023, representing a reduction of 9.3%[29] - Loss before tax for the period was CHF 85,937,000 in 2024, compared to CHF 88,695,000 in 2023, indicating a decrease of 3.0%[29] - Basic and diluted loss per share improved to CHF 2.12 in 2024 from CHF 2.97 in 2023, a reduction of 28.6%[29] - Total comprehensive loss for the period was CHF 86,882,000 in 2024, slightly better than CHF 89,637,000 in 2023, a decrease of 3.9%[31] - General and administrative expenses rose to CHF 21,807,000 in 2024, up 24.5% from CHF 17,487,000 in 2023[29] - The company reported a finance result loss of CHF 12,733,000 in 2024, worsening from a loss of CHF 7,981,000 in 2023[29] - The total comprehensive loss for the period ending December 31, 2023, was CHF 86,882,000, which includes a loss of CHF 85,777,000 for the period[33] Share-Based Compensation - The company reported a share-based compensation expense of CHF 9,782,000 for the period[33] - The total share-based compensation expense increased to CHF 9.78 million in 2024 from CHF 3.61 million in 2023, with stock options accounting for CHF 8.22 million and RSUs for CHF 1.56 million[172] - The reserve for share-based payment increased significantly to CHF 16,062 thousand in 2024 from CHF 6,379 thousand in 2023, an increase of 151.5%[28] - The weighted average grant date fair value of options granted in 2024 was CHF 7.80 ($8.85) per share, up from CHF 5.24 ($5.83) in 2023, and CHF 1.66 ($1.74) in 2022[166] Cash Flow - Net cash outflow from operating activities decreased to CHF 47,499 thousand in 2024 from CHF 53,845 thousand in 2023, indicating improved cash management[34] - Net cash outflow from investing activities was CHF 17,557 thousand in 2024, significantly lower than CHF 54,211 thousand in 2023[34] - Net cash inflow from financing activities was CHF 54,030 thousand in 2024, compared to CHF 129,672 thousand in 2023, reflecting a decrease in capital raised[34] - Cash and cash equivalents at the end of the period were CHF 27,708 thousand, down from CHF 38,327 thousand in 2023[34] Financial Instruments and Liabilities - Warrant liabilities increased to CHF 19,851 thousand in 2024 from CHF 5,370 thousand in 2023, a substantial increase of 269.5%[28] - The fair value adjustment on warrant liabilities was CHF 15,531 thousand in 2024, up from CHF 3,431 thousand in 2023[34] - The fair value loss on warrant liabilities for the year ended December 31, 2024 was CHF 15.5 million, increasing the total warrant liability to CHF 19.9 million[190] Research and Development - The Company completed the Phase 2 ACUITY trial of Privosegtor (OCS-05) in 2024 and received FDA clearance for its investigational new drug[136] - Research and development costs are generally recognized as expenses in the year incurred, with capitalization occurring only when specific criteria are met[71] - Personnel expenses for research and development reached CHF 11.1 million in 2024, compared to CHF 6.5 million in 2023, marking a significant increase[125] Business Combinations and Offerings - The Company completed a Business Combination with European Biotech Acquisition Corp (EBAC) on March 2, 2023, receiving gross proceeds of CHF 97.6 million ($103.7 million) from cash and private placement investments[111] - The Business Combination was accounted for as a capital re-organization, resulting in a merger and listing expense of CHF 34.9 million recognized as operating expenses[113] - The Company issued 3,654,234 ordinary shares in a public offering on June 5 and June 13, 2023, generating total gross proceeds of CHF 38.2 million ($42.0 million)[116] - A registered direct offering on April 22, 2024, raised CHF 53.5 million ($58.8 million) through the issuance of 5,000,000 ordinary shares[117] Taxation - The Group's total tax benefit for 2024 was CHF 160,000, contrasting with a tax expense of CHF 107,000 in 2023[132] - The accumulated tax losses available for carryforward as of December 31, 2024, amounted to CHF 233.8 million, with no deferred tax assets recognized due to uncertainty in future taxable profits[133] - The weighted average tax rates applicable to profits were 13.7%, 12.7%, and 13.9% for the years 2024, 2023, and 2022, respectively[132] Commitments and Contingencies - The Company is obligated to pay additional CHF 87.8 million in milestones if all predefined milestones under the Novartis license agreement are reached[192] - The Company has paid a total of CHF 3.0 million in upfront fees under the Accure license agreement, with potential additional payments of CHF 101.4 million if all milestones are met[193]