Adagene(ADAG) - 2022 Q4 - Annual Report

Initial Public Offering - The company completed its initial public offering in February 2021, issuing 8,457,100 ADSs, resulting in net proceeds of approximately US$145.9 million after underwriting discounts and commissions [1061]. - Total expenses incurred for the initial public offering were approximately US$15.1 million, including US$11.2 million in underwriting discounts and commissions [1062]. - As of December 31, 2022, the company utilized US$64 million of the net proceeds from the initial public offering primarily for research and development of product candidates [1063]. - The company plans to continue using the remainder of the proceeds from the initial public offering as disclosed in its registration statements [1063]. Financial Risks - The company has not been materially affected by inflation in China, with year-over-year consumer price index changes of 2.4%, 0.9%, and 2.0% for December 2020, 2021, and 2022, respectively [1050]. - The company does not anticipate significant exposure to interest rate risk, as it has not used derivative financial instruments to manage this risk [1045]. - The company has limited direct foreign exchange risk, but the value of investments in ADSs may be affected by the exchange rate between the U.S. dollar and Renminbi [1046]. - The Renminbi appreciated approximately 7% against the U.S. dollar in 2017 but depreciated approximately 5% in 2018, indicating volatility in exchange rates [1048]. Company Stability - The company has not experienced any defaults, dividend arrearages, or delinquencies [1060]. - The company has not made any material modifications to the rights of security holders [1060].