
Unaudited Condensed Consolidated Interim Financial Statements This section presents the unaudited condensed consolidated interim financial statements, detailing the company's financial performance and position Statements of Financial Position Total assets significantly increased to CHF 204.2 million by March 31, 2025, driven by higher current assets, leading to a substantial rise in total equity due to share issuances Condensed Statement of Financial Position (in CHF thousands) | | As of March 31, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Total Assets | 204,171 | 120,353 | | Total non-current assets | 15,382 | 15,456 | | Total current assets | 188,789 | 104,897 | | Cash and cash equivalents | 59,873 | 27,708 | | Short-term financial assets | 122,055 | 70,955 | | Total Equity and Liabilities | 204,171 | 120,353 | | Total Equity | 162,626 | 73,383 | | Total Liabilities | 41,545 | 46,970 | Statements of Loss The company reported a net loss of CHF 33.2 million for Q1 2025, significantly wider than the prior year, primarily due to increased operating expenses and a substantial negative finance result Statement of Loss Highlights (in CHF thousands) | | For the three months ended March 31, 2025 | For the three months ended March 31, 2024 | | :--- | :--- | :--- | | Operating income | 285 | 222 | | Research and development expenses | (14,771) | (10,856) | | General and administrative expenses | (5,488) | (4,694) | | Operating loss | (19,974) | (15,328) | | Fair value adjustment on warrant liabilities | (11,911) | (3,069) | | Loss for the period | (33,213) | (16,093) | | Basic and diluted loss per share | (0.69) | (0.44) | Statements of Comprehensive Loss Total comprehensive loss for Q1 2025 was CHF 32.7 million, significantly higher than the prior year, primarily driven by the net loss for the period Comprehensive Loss Reconciliation (in CHF thousands) | | For the three months ended March 31, 2025 | For the three months ended March 31, 2024 | | :--- | :--- | :--- | | Loss for the period | (33,213) | (16,093) | | Other comprehensive (loss) income | 548 | 31 | | Total comprehensive loss for the period | (32,665) | (16,062) | Statements of Changes in Equity Total equity more than doubled to CHF 162.6 million in Q1 2025, primarily driven by significant inflows from share issuances and warrant exercises, partially offset by the net loss Key Changes in Equity - Q1 2025 (in CHF thousands) | Item | Amount | | :--- | :--- | | Balance as of January 1, 2025 | 73,383 | | Issuance of ordinary shares | 90,227 | | Warrants exercised | 35,719 | | Loss for the period | (33,213) | | Share-based compensation expense | 2,630 | | Transaction costs | (6,982) | | Balance as of March 31, 2025 | 162,626 | Statements of Cash Flows Despite increased operating and investing cash outflows, strong financing activities led to a net increase in cash and cash equivalents of CHF 33.4 million for Q1 2025 Summary of Cash Flows (in CHF thousands) | | For the three months ended March 31, 2025 | For the three months ended March 31, 2024 | | :--- | :--- | :--- | | Net cash outflow for operating activities | (18,963) | (13,720) | | Net cash outflow for investing activities | (51,505) | (1,512) | | Net cash inflow from financing activities | 103,831 | 171 | | (Decrease) increase in cash and cash equivalents | 33,363 | (15,061) | - Effective January 1, 2025, the company reclassified interest paid from operating to financing activities and interest received from operating to investing activities, with prior periods recast for comparability1822 Notes to the Unaudited Condensed Consolidated Interim Financial Statements This section provides detailed explanations supporting the financial statements, covering corporate information, accounting policies, financing activities, and specific breakdowns of assets, liabilities, and equity 1. Corporate Information Oculis Holding AG is a Swiss-based, global late clinical-stage biopharmaceutical company focused on developing innovative treatments for ophthalmic and neuro-ophthalmic diseases - Oculis is a global late clinical-stage biopharmaceutical company focused on therapeutics for ophthalmic and neuro-ophthalmic diseases15 - The company's mission is to improve patient health by developing medicines that save sight and improve eye care15 2. Basis of Preparation and Changes to the Group's Accounting Policies The financial statements are prepared on a going concern basis, with a key accounting policy change reclassifying interest paid and received on the cash flow statement, applied retrospectively - The Board believes the Group has sufficient funds for at least the next 12 months, supported by current cash and February 2025 offering proceeds16 - The company's long-term viability depends on its ability to raise additional capital to finance future operations17 - Effective January 1, 2025, interest paid and received were reclassified on the cash flow statement from operating to financing and investing activities, respectively, applied retrospectively1822 3. Summary of Material Accounting Policies, Critical Judgments and Accounting Estimates Accounting policies and estimates remain consistent with 2024 annual statements, while the company evaluates the potential impact of IFRS 18, effective January 1, 2027 - Critical accounting estimates, assumptions, and judgments are unchanged from the 2024 annual financial statements27 - The company is assessing the impact of IFRS 18, a new presentation and disclosure standard effective for periods beginning on or after January 1, 202729 4. Financing Activities Key financing activities included a CHF 90.2 million share offering, establishment of a CHF 50.0 million loan facility, and a $100.0 million ATM offering program - In February 2025, the company raised gross proceeds of CHF 90.2 million ($100.0 million) from an underwritten offering of 5,000,000 ordinary shares30 - A loan facility agreement with Kreos Capital provides up to CHF 50.0 million in borrowing capacity, with no amounts drawn as of March 31, 202531 - An ATM offering program was established to sell up to $100.0 million of ordinary shares, with no sales through March 31, 202534 5. Segment Information Oculis operates as a single business segment, with the majority of non-current assets, including all intangible assets, located in Switzerland - The company is managed and operated as one reportable business segment37 Non-Current Assets by Geography (in CHF thousands) | Asset Type | Switzerland | Iceland | Others | Total | | :--- | :--- | :--- | :--- | :--- | | Intangible assets | 13,292 | - | - | 13,292 | | Property and equipment | 188 | 160 | 16 | 364 | | Right-of-use assets | 660 | 558 | - | 1,218 | | Total | 14,140 | 718 | 16 | 14,874 | 6. Intangible Assets Intangible assets totaled CHF 13.3 million as of March 31, 2025, primarily comprising licenses for drug candidates Licaminlimab and Privosegtor, with recent milestone payments for the latter - Intangible assets of CHF 13.3 million comprise licenses for Licaminlimab (OCS-02) from Novartis and Privosegtor (OCS-05) from Accure39 - Milestone payments of CHF 1.1 million to Accure for Privosegtor (OCS-05) were triggered by Phase 2 trial completion and FDA IND clearance, paid in Q1 202539 7. Income and Expenses Operating expenses increased to CHF 20.3 million in Q1 2025, mainly due to higher R&D costs, while the finance result worsened to a CHF 13.2 million loss from fair value adjustments and foreign exchange losses Operating Expenses Breakdown (in CHF thousands) | Expense Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Research and development | 14,771 | 10,856 | | General and administrative | 5,488 | 4,694 | | Total operating expenses | 20,259 | 15,550 | - The increase in R&D spending primarily supported clinical trial expenses for the Phase 3 DIAMOND-1 and DIAMOND-2 trials of OCS-01 in diabetic macular edema (DME)41 Finance Result Breakdown (in CHF thousands) | Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Finance income | 493 | 581 | | Finance expense | (247) | (41) | | Fair value adjustment on warrant liabilities | (11,911) | (3,069) | | Foreign currency exchange gain (loss) | (1,567) | 1,794 | | Finance result | (13,232) | (735) | 8. Other Current Assets and Accrued Income Other current assets remained stable at CHF 5.9 million, with a decrease in prepaid clinical expenses offset by an increase in prepaid G&A expenses and accrued R&D income - The decrease in prepaid clinical expenses resulted from the advancement of the OCS-01 DIAMOND trials in DME44 - Accrued income is derived from R&D tax credits provided by the Icelandic government45 9. Share-based Compensation Share-based compensation expense more than doubled to CHF 2.6 million in Q1 2025 due to new grants and the vesting of earnout options and shares upon achieving stock price targets - Total share-based compensation expense was CHF 2.6 million for Q1 2025, a significant increase from CHF 1.1 million in Q1 202454 Share-Based Award Activity - Q1 2025 | Award Type | Granted | Outstanding as of Mar 31, 2025 | | :--- | :--- | :--- | | Options & SARs | 973,931 | 5,217,801 | | Restricted Stock Units (RSUs) | 594,524 | 1,057,287 | - VWAP price targets of $15.00 and $20.00 were met, resulting in 168,571 earnout options becoming exercisable55 10. Cash and Cash Equivalents, and Short-term Financial Assets The company's liquidity significantly strengthened, with combined cash and short-term financial assets increasing to CHF 181.9 million, primarily held in Swiss Francs and US Dollars Cash and Short-Term Financial Assets by Currency (in CHF thousands) | Currency | As of March 31, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Swiss Franc | 116,831 | 63,810 | | US Dollar | 56,732 | 25,189 | | Euro | 8,213 | 8,960 | | Other | 152 | 704 | | Total | 181,928 | 98,663 | 11. Warrant Liabilities Warrant liabilities decreased to CHF 14.9 million in Q1 2025, driven by warrant exercises generating CHF 18.9 million in cash, partially offset by a CHF 11.9 million fair value loss Warrant Liability Movement - Q1 2025 (in CHF thousands) | Item | Amount | | :--- | :--- | | Balance as of January 1, 2025 | 19,851 | | Fair value loss on warrant liabilities | 11,911 | | Exercise of public and private warrants | (16,825) | | Balance as of March 31, 2025 | 14,937 | - The exercise of 1,806,297 warrants in Q1 2025 generated cash proceeds of CHF 18.9 million62 - The CHF 11.9 million fair value loss was primarily due to an increase in the trading price of public warrants61 12. Accrued Expenses and Other Payables Accrued expenses and other payables increased to CHF 19.9 million, primarily due to higher product development and G&A expenses, partially offset by lower personnel-related costs Accrued Expenses Breakdown (in CHF thousands) | Category | As of March 31, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Product development related expenses | 15,354 | 13,702 | | Personnel related expenses | 2,199 | 3,696 | | General and administration related expenses | 2,249 | 749 | | Total | 19,860 | 18,198 | 13. Shareholders' Equity This section details the company's equity structure, including conditional capital, a capital band authorizing up to 22.7 million new shares, and the vesting of 2.8 million earnout shares upon achieving stock price targets - The company has a capital band authorizing the Board to issue up to 22,721,850 ordinary shares until May 29, 202971 - As of March 31, 2025, 3,500,000 treasury shares were held, reserved for the ATM Offering Program729 - Achieving $15.00 and $20.00 VWAP targets resulted in the vesting of 1,422,723 earnout shares on each occasion74 14. Loss per Share Basic and diluted loss per share increased to CHF 0.69 for Q1 2025, calculated on a net loss of CHF 33.2 million and a weighted-average of 48.3 million shares Loss Per Share Calculation | | For the three months ended March 31, 2025 | For the three months ended March 31, 2024 | | :--- | :--- | :--- | | Net loss (in CHF thousands) | (33,213) | (16,093) | | Weighted-average shares | 48,263,134 | 36,621,162 | | Basic and diluted net loss per share | (0.69) | (0.44) | - 9,435,724 potentially dilutive securities were excluded from diluted loss per share calculation as their effect was anti-dilutive due to the net loss78 15. Related Party Disclosures Key management personnel compensation totaled CHF 3.4 million for Q1 2025, a significant increase from the prior year, driven by higher salaries, cash, and share-based compensation Key Management Compensation (in CHF thousands) | Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Salaries, cash compensation & other benefits | 1,755 | 966 | | Pension | 105 | 92 | | Share-based compensation expense | 1,522 | 915 | | Total | 3,382 | 1,973 | 16. Subsequent Events No material events occurred after March 31, 2025, that would require disclosure or adjustment in the financial statements - There are no material subsequent events to report81