Documents
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Description
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99.1
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99.2
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99.3
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AETERNA ZENTARIS INC.
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Date: March 27, 2018
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By:
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/s/ Michael V. Ward
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Michael V. Ward
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Chief Executive Officer
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•
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U.S. Food and Drug Administration (FDA) granted marketing approval for Macrilen™
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•
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Marketing Authorization Application (MAA) for the use of Macrilen™ (macimorelin) for the evaluation of AGHD was accepted by the European Medicines Agency (EMA) for regulatory review
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•
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Macrilen™(macimorelin) License and Assignment Agreement to Strongbridge Biopharma completed
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•
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Financial condition and capital structure improved
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◦
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As of December 31, 2017, we had $7.8 million
of
unrestricted cash and cash equivalents at year-end and no third-party debt;
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◦
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Upfront payment of $24 million received from Strongbridge in January 2018
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◦
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Approximately 16,440,760
Common Shares outstanding as of March 27, 2018
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•
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Appointment of James Clavijo as Chief Financial Officer
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•
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Toll-Free: 877-407-8029, Confirmation #13677806
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•
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Toll: 201-689-8029, Confirmation #13677806
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Three months ended December 31,
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Years ended December 31,
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|||||||||||
(in thousands, except share and per share data)
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2017
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2016
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2017
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2016
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2015
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|||||
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$
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$
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$
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$
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$
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Revenues
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Sales commission and other
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59
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94
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465
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414
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297
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License fees
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119
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210
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458
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497
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248
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Total revenues
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178
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304
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923
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911
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545
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Operating expenses
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|||||
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Research and development costs
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526
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4,619
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10,704
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16,495
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17,234
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General and administrative expenses
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2,778
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1,757
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8,198
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7,147
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11,308
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Selling expenses
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452
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1,526
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5,095
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6,745
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6,887
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Total operating expenses
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3,756
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7,902
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23,997
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30,387
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35,429
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Loss from operations
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(3,578
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)
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(7,598
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)
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(23,074
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)
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(29,476
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)
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(34,884
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)
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Gain (loss) due to changes in foreign currency exchange rates
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72
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(396
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)
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502
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(70
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)
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(1,767
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)
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Change in fair value of warrant liability
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(478
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)
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(245
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)
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2,222
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4,437
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(10,956
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)
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Warrant exercise inducement fee
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—
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—
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—
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—
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(2,926
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)
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Other finance income
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21
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19
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75
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150
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305
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Net finance income (costs)
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(385
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)
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(622
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)
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2,799
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4,517
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(15,344
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)
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Loss before income taxes
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(3,963
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)
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(8,220
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)
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(20,275
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)
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(24,959
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)
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(50,228
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)
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Income tax recovery
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3,479
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—
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3,479
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—
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—
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Net loss from continuing operations
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(484
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)
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(8,220
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)
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(16,796
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)
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(24,959
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)
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(50,228
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)
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Net income from discontinued operations
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—
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—
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—
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—
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85
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Net loss
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(484
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)
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(8,220
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)
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(16,796
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)
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(24,959
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)
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(50,143
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)
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Other comprehensive loss:
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Items that may be reclassified subsequently to profit or loss:
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Foreign currency translation adjustments
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(238
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)
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|
870
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(1,430
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)
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569
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1,509
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Items that will not be reclassified to profit or loss:
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Actuarial gain (loss) on defined benefit plans
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59
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1,143
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694
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(1,479
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)
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844
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Comprehensive loss
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(663
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)
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(6,207
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)
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(17,532
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)
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(25,869
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)
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(47,790
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)
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Net loss per share (basic and diluted) from continuing operations
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(0.03
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)
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(0.71
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)
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(1.12
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)
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(2.41
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)
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(18.17
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)
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Net income per share (basic and diluted) from discontinued operations
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—
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—
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—
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—
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0.03
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Net loss per share (basic and diluted)
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(0.03
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)
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(0.71
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)
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(1.12
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)
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(2.41
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)
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(18.14
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)
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Weighted average number of shares outstanding:
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Basic and Diluted
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16,440,760
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11,565,210
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14,958,704
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10,348,879
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2,763,603
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December 31,
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(in thousands)
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2017
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2016
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$
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$
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Cash and cash equivalents
1
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7,780
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21,999
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Trade and other receivables and other current assets
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|
958
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|
744
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Restricted cash equivalents
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|
381
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496
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Inventory
|
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643
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—
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Property, plant and equipment
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101
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204
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Deferred tax assets
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3,479
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—
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Other non-current assets
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8,853
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8,216
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Total assets
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22,195
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31,659
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Payables and other current liabilities
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2,987
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3,745
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Provision for restructuring costs
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2,296
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33
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Current portion of deferred revenues
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486
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426
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Warrant liability
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3,897
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6,854
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Non-financial non-current liabilities
2
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15,312
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14,389
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Total liabilities
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24,978
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25,447
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Shareholders' (deficiency) equity
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(2,783
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)
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6,212
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Total liabilities and shareholders' (deficiency) equity
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22,195
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31,659
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1.
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Approximately $0.6 million and $1.5 million were denominated in EUR as at
December 31, 2017
and
December 31, 2016
, respectively, and approximately $1.0 million and $3.7 million were denominated in Canadian dollars as at
December 31, 2017
and
December 31, 2016
, respectively.
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2.
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Comprised mainly of employee future benefits, provisions for onerous contracts and non-current portion of deferred revenues.
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Aeterna Zentaris Inc.
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Consolidated Financial Statements
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As at December 31, 2017 and December 31, 2016 and years ended December 31, 2017, 2016 and 2015
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Consolidated Statements of
Changes in Shareholders' (Deficiency) Equity
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Aeterna Zentaris Inc.
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Consolidated Statements of Financial Position
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(in thousands of US dollars)
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December 31, 2017
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December 31, 2016
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$
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$
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ASSETS
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Current assets
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Cash and cash equivalents
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7,780
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21,999
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Trade and other receivables (note 8)
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221
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365
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Inventory (note 7)
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643
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—
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Prepaid expenses and other current assets
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737
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|
379
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Total current assets
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9,381
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22,743
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Restricted cash equivalents
|
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381
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|
496
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Property, plant and equipment (note 9)
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101
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|
204
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Deferred tax assets (note 20)
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3,479
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|
|
—
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Identifiable intangible assets (note 10)
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90
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|
70
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|
Other non-current assets
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|
150
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|
|
593
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|
Goodwill (note 11)
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8,613
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|
|
7,553
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|
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22,195
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|
|
31,659
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LIABILITIES
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Current liabilities
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|
|
|
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Payables and accrued liabilities (note 12)
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2,987
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|
3,745
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Provision for restructuring costs (note 13)
|
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2,296
|
|
|
33
|
|
Current portion of deferred revenues (note 5)
|
|
486
|
|
|
426
|
|
|
|
5,769
|
|
|
4,204
|
|
Deferred revenues (note 5)
|
|
55
|
|
|
474
|
|
Warrant liability (note 14)
|
|
3,897
|
|
|
6,854
|
|
Employee Benefits
|
|
14,229
|
|
|
13,414
|
|
Provisions (note 15)
|
|
1,028
|
|
|
501
|
|
Total current liabilities
|
|
24,978
|
|
|
25,447
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|
SHAREHOLDERS' (DEFICIENCY) EQUITY
|
|
|
|
|
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Share capital (note 16)
|
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222,335
|
|
|
213,980
|
|
Other capital
|
|
88,772
|
|
|
88,590
|
|
Deficit
|
|
(314,161
|
)
|
|
(298,059
|
)
|
Accumulated other comprehensive income
|
|
271
|
|
|
1,701
|
|
Total shareholders' (deficiency) equity
|
|
(2,783
|
)
|
|
6,212
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|
Total liabilities and shareholders' (deficiency) equity
|
|
22,195
|
|
|
31,659
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|
/s/ Carolyn Egbert
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/s/ Gérard Limoges
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Carolyn Egbert
Chair of the Board
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Gérard Limoges
Director
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Aeterna Zentaris Inc.
|
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Consolidated Statements of Changes in Shareholders' (Deficiency) Equity
|
||
For the years ended December 31, 2017, 2016 and 2015
|
||
(in thousands of US dollars, except share data)
|
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Common shares (number of)
1
|
|
Share capital
|
|
Other capital
|
|
Deficit
|
|
Accumulated other comprehensive income
|
|
Total
|
||||||
|
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
||||||
Balance - January 1, 2017
|
12,917,995
|
|
|
213,980
|
|
|
88,590
|
|
|
(298,059
|
)
|
|
1,701
|
|
|
6,212
|
|
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(16,796
|
)
|
|
—
|
|
|
(16,796
|
)
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,430
|
)
|
|
(1,430
|
)
|
Actuarial gain on defined benefit plans (note 18)
|
—
|
|
|
—
|
|
|
—
|
|
|
694
|
|
|
—
|
|
|
694
|
|
Comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(16,102
|
)
|
|
(1,430
|
)
|
|
(17,532
|
)
|
Share issuances pursuant to the exercise of pre-funded warrants (note 16)
|
301,343
|
|
|
977
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
977
|
|
Share issuances in connection with "At-the-Market" drawdowns (note 16)
|
3,221,422
|
|
|
7,378
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,378
|
|
Share-based compensation costs
|
—
|
|
|
—
|
|
|
182
|
|
|
—
|
|
|
—
|
|
|
182
|
|
Balance - December 31, 2017
|
16,440,760
|
|
|
222,335
|
|
|
88,772
|
|
|
(314,161
|
)
|
|
271
|
|
|
(2,783
|
)
|
1
|
Issued and paid in full.
|
Aeterna Zentaris Inc.
|
||
Consolidated Statements of Changes in Shareholders' (Deficiency) Equity
|
||
For the years ended December 31, 2017, 2016 and 2015
|
||
(in thousands of US dollars, except share data)
|
|
|
Common shares (number of)
1, 2
|
|
Share capital
|
|
Pre-funded warrants
|
|
Other capital
|
|
Deficit
|
|
Accumulated other comprehensive income (loss)
|
|
Total
|
|||||||
|
|
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|||||||
Balance - January 1, 2016
|
|
9,928,697
|
|
|
204,596
|
|
|
—
|
|
|
87,508
|
|
|
(271,621
|
)
|
|
1,132
|
|
|
21,615
|
|
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24,959
|
)
|
|
—
|
|
|
(24,959
|
)
|
Other comprehensive loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Foreign currency translation adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
569
|
|
|
569
|
|
Actuarial loss on defined benefit plan (note 18)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,479
|
)
|
|
—
|
|
|
(1,479
|
)
|
Comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(26,438
|
)
|
|
569
|
|
|
(25,869
|
)
|
Share issuances in connection with public offerings (note 16)
|
|
1,150,000
|
|
|
3,377
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,377
|
|
Pre-funded warrant issuances in connection with a public offering (note 16)
|
|
—
|
|
|
—
|
|
|
2,789
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,789
|
|
Share issuances pursuant to the exercise of pre-funded warrants (note 16)
|
|
950,000
|
|
|
2,789
|
|
|
(2,789
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Share issuances in connection with "at-the-market" drawdowns (note 16)
|
|
889,298
|
|
|
3,218
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,218
|
|
Share-based compensation costs
|
|
|
|
—
|
|
|
—
|
|
|
1,082
|
|
|
—
|
|
|
—
|
|
|
1,082
|
|
|
Balance - December 31, 2016
|
|
12,917,995
|
|
|
213,980
|
|
|
—
|
|
|
88,590
|
|
|
(298,059
|
)
|
|
1,701
|
|
|
6,212
|
|
Balance - January 1, 2015
|
|
655,091
|
|
|
150,544
|
|
|
—
|
|
|
86,639
|
|
|
(222,322
|
)
|
|
(377
|
)
|
|
14,484
|
|
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(50,143
|
)
|
|
—
|
|
|
(50,143
|
)
|
Other comprehensive loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Foreign currency translation adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,509
|
|
|
1,509
|
|
Actuarial loss on defined benefit plan (note 18)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
844
|
|
|
—
|
|
|
844
|
|
Comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(49,299
|
)
|
|
1,509
|
|
|
(47,790
|
)
|
Share issuances in connection with a public offering (note 16)
|
|
3,250,481
|
|
|
14,322
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,322
|
|
Pre-funded warrant issuances in connection with a public offering
|
|
—
|
|
|
—
|
|
|
8,653
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,653
|
|
Share issuances pursuant to the exercise of pre-funded warrants
|
|
346,294
|
|
|
8,653
|
|
|
(8,653
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Share issuances pursuant to the exercise of warrants (other than pre-funded warrants) (notes 12 and 15)
|
|
5,676,831
|
|
|
31,077
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31,077
|
|
Share-based compensation costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
869
|
|
|
—
|
|
|
—
|
|
|
869
|
|
Balance - December 31, 2015
|
|
9,928,697
|
|
|
204,596
|
|
|
—
|
|
|
87,508
|
|
|
(271,621
|
)
|
|
1,132
|
|
|
21,615
|
|
1
|
Issued and paid in full.
|
2
|
Adjusted to reflect the November 17, 2015 100-to-1 Share Consolidation (see
note 1 - Business overview
and
note 16 - Share capital
).
|
Aeterna Zentaris Inc.
|
||
Consolidated Statements of Comprehensive Loss
|
||
For the years ended December 31, 2017, 2016 and 2015
|
||
(in thousands of US dollars, except share and per share data)
|
|
|
Years Ended December 31,
|
|||||||
|
|
2017
|
|
2016
|
|
2015
|
|||
|
|
$
|
|
$
|
|
$
|
|||
Revenues
|
|
|
|
|
|
|
|||
Sales commission and other
|
|
465
|
|
|
414
|
|
|
297
|
|
License fees (note 5)
|
|
458
|
|
|
497
|
|
|
248
|
|
Total revenues
|
|
923
|
|
|
911
|
|
|
545
|
|
Operating expenses (note 17)
|
|
|
|
|
|
|
|||
Research and development costs
|
|
10,704
|
|
|
16,495
|
|
|
17,234
|
|
General and administrative expenses
|
|
8,198
|
|
|
7,147
|
|
|
11,308
|
|
Selling expenses
|
|
5,095
|
|
|
6,745
|
|
|
6,887
|
|
Total operating expenses
|
|
23,997
|
|
|
30,387
|
|
|
35,429
|
|
Loss from operations
|
|
(23,074
|
)
|
|
(29,476
|
)
|
|
(34,884
|
)
|
Gain (loss) due to changes in foreign currency exchange rates
|
|
502
|
|
|
(70
|
)
|
|
(1,767
|
)
|
Change in fair value of warrant liability (note 14)
|
|
2,222
|
|
|
4,437
|
|
|
(10,956
|
)
|
Warrant exercise inducement fee (note 14)
|
|
—
|
|
|
—
|
|
|
(2,926
|
)
|
Other finance income
|
|
75
|
|
|
150
|
|
|
305
|
|
Net finance income (costs)
|
|
2,799
|
|
|
4,517
|
|
|
(15,344
|
)
|
Loss before income taxes
|
|
(20,275
|
)
|
|
(24,959
|
)
|
|
(50,228
|
)
|
Income tax expense (note 20)
|
|
3,479
|
|
|
—
|
|
|
—
|
|
Net loss from continuing operations
|
|
(16,796
|
)
|
|
(24,959
|
)
|
|
(50,228
|
)
|
Net income from discontinued operations
|
|
—
|
|
|
—
|
|
|
85
|
|
Net loss
|
|
(16,796
|
)
|
|
(24,959
|
)
|
|
(50,143
|
)
|
Other comprehensive loss:
|
|
|
|
|
|
|
|||
Items that may be reclassified subsequently to profit or loss:
|
|
|
|
|
|
|
|||
Foreign currency translation adjustments
|
|
(1,430
|
)
|
|
569
|
|
|
1,509
|
|
Items that will not be reclassified to profit or loss:
|
|
|
|
|
|
|
|||
Actuarial gain (loss) on defined benefit plans
|
|
694
|
|
|
(1,479
|
)
|
|
844
|
|
Comprehensive loss
|
|
(17,532
|
)
|
|
(25,869
|
)
|
|
(47,790
|
)
|
Net loss per share (basic and diluted) from continuing operations (note 24)¹
|
|
(1.12
|
)
|
|
(2.41
|
)
|
|
(18.17
|
)
|
Net income per share (basic and diluted) from discontinued operations (note 24)¹
|
|
—
|
|
|
—
|
|
|
0.03
|
|
Net loss per share (basic and diluted) (note 24)¹
|
|
(1.12
|
)
|
|
(2.41
|
)
|
|
(18.14
|
)
|
Weighted average number of shares outstanding (note 24):¹
|
|
|
|
|
|
|
|||
Basic and Diluted
|
|
14,958,704
|
|
|
10,348,879
|
|
|
2,763,603
|
|
Aeterna Zentaris Inc.
|
||
Consolidated Statements of Cash Flows
|
||
For the years ended December 31, 2017, 2016 and 2015
|
||
(in thousands of US dollars)
|
|
|
Years Ended December 31,
|
|||||||
|
|
2017
|
|
2016
|
|
2015
|
|||
|
|
$
|
|
$
|
|
$
|
|||
Cash flows from operating activities
|
|
|
|
|
|
|
|||
Net loss for the year
|
|
(16,796
|
)
|
|
(24,959
|
)
|
|
(50,228
|
)
|
Items not affecting cash and cash equivalents:
|
|
|
|
|
|
|
|
||
Change in fair value of warrant liability (note 14)
|
|
(2,222
|
)
|
|
(4,437
|
)
|
|
10,956
|
|
Provision for restructuring costs (note 13)
|
|
3,083
|
|
|
(8
|
)
|
|
932
|
|
Recapture of inventory previously written off (note 7)
|
|
(643
|
)
|
|
—
|
|
|
—
|
|
Depreciation, amortization and impairment (notes 9 and 10)
|
|
94
|
|
|
280
|
|
|
341
|
|
Deferred income taxes (note 20)
|
|
(3,479
|
)
|
|
|
|
|
||
Share-based compensation costs (note 16)
|
|
182
|
|
|
1,082
|
|
|
919
|
|
Employee future benefits (note 18)
|
|
246
|
|
|
382
|
|
|
351
|
|
Amortization of deferred revenues (note 5)
|
|
(458
|
)
|
|
(345
|
)
|
|
(248
|
)
|
Foreign exchange (gain) loss on items denominated in foreign currencies
|
|
(553
|
)
|
|
87
|
|
|
1,581
|
|
Gain on disposal of property, plant and equipment
|
|
(136
|
)
|
|
(1
|
)
|
|
(264
|
)
|
Other non-cash items
|
|
(19
|
)
|
|
(83
|
)
|
|
154
|
|
Gain associated with the extinguishment of warrant liability (note 16)
|
|
—
|
|
|
—
|
|
|
(162
|
)
|
Transaction cost allocated to warrants issued (note 16)
|
|
—
|
|
|
56
|
|
|
2,208
|
|
Series B Warrant exercise inducement fee (note 14)
|
|
—
|
|
|
—
|
|
|
2,926
|
|
Changes in operating assets and liabilities (note 19)
|
|
(2,212
|
)
|
|
(1,064
|
)
|
|
(3,395
|
)
|
Net cash provided by operating activities of discontinued operations
|
|
—
|
|
|
—
|
|
|
85
|
|
Net cash used in operating activities
|
|
(22,913
|
)
|
|
(29,010
|
)
|
|
(33,844
|
)
|
Cash flows from financing activities
|
|
|
|
|
|
|
|||
Proceeds from issuances of common shares, warrants (including pre-funded warrants), net of cash transaction costs of $250, $1,107, and $4,223 in 2017, 2016, and 2015, respectively (note 16)
|
|
7,788
|
|
|
9,924
|
|
|
49,427
|
|
Proceeds from warrants exercised
|
|
242
|
|
|
—
|
|
|
—
|
|
Series B Warrant exercise inducement fee (note 14)
|
|
—
|
|
|
—
|
|
|
(2,926
|
)
|
Payment pursuant to warrant amendment agreements (note 16)
|
|
—
|
|
|
—
|
|
|
(5,703
|
)
|
Net cash provided by financing activities
|
|
8,030
|
|
|
9,924
|
|
|
40,798
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|||
Purchase of property, plant and equipment (note 9)
|
|
(4
|
)
|
|
(66
|
)
|
|
(26
|
)
|
Disposals of property, plant and equipment (note 9)
|
|
161
|
|
|
2
|
|
|
505
|
|
Decrease (increase) in restricted cash equivalents
|
|
150
|
|
|
(250
|
)
|
|
434
|
|
Net cash provided by (used in) investing activities
|
|
307
|
|
|
(314
|
)
|
|
913
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
357
|
|
|
(51
|
)
|
|
(1,348
|
)
|
Net change in cash and cash equivalents
|
|
(14,219
|
)
|
|
(19,451
|
)
|
|
6,519
|
|
Cash and cash equivalents – Beginning of year
|
|
21,999
|
|
|
41,450
|
|
|
34,931
|
|
Cash and cash equivalents – End of year
|
|
7,780
|
|
|
21,999
|
|
|
41,450
|
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
|
|
Methods
|
|
Annual rates and period
|
Equipment
|
|
Declining balance and straight-line
|
|
20%
|
Furniture and fixtures
|
|
Declining balance and straight-line
|
|
10% and 20%
|
Computer equipment
|
|
Straight-line
|
|
25% and 33
1
/3%
|
Leasehold improvements
|
|
Straight-line
|
|
Remaining lease term
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
i.
|
the service is provided;
|
ii.
|
the amount of revenue can be measured reliably; and
|
iii.
|
it is probable that the economic benefits associated with the transaction will flow to the Company.
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
|
|
December 31,
|
||||
|
|
2017
|
|
2016
|
||
|
|
$
|
|
$
|
||
Cash on hand and balances with banks
|
|
7,780
|
|
|
21,999
|
|
|
|
7,780
|
|
|
21,999
|
|
|
|
December 31,
|
||||
|
|
2017
|
|
2016
|
||
|
|
$
|
|
$
|
||
Finished goods inventory
|
|
556
|
|
|
—
|
|
Semi-finished goods inventory
|
|
87
|
|
|
—
|
|
|
|
643
|
|
|
—
|
|
|
|
December 31,
|
||||
|
|
2017
|
|
2016
|
||
|
|
$
|
|
$
|
||
Trade accounts receivable
|
|
20
|
|
|
155
|
|
Value added tax
|
|
186
|
|
|
130
|
|
Other
|
|
15
|
|
|
80
|
|
|
|
221
|
|
|
365
|
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
|
|
Cost
|
|||||||||||||
|
|
Equipment
|
|
Furniture and fixtures
|
|
Computer equipment
|
|
Leasehold improvements
|
|
Total
|
|||||
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|||||
At January 1, 2016
|
|
4,039
|
|
|
19
|
|
|
746
|
|
|
19
|
|
|
4,823
|
|
Additions
|
|
27
|
|
|
—
|
|
|
19
|
|
|
20
|
|
|
66
|
|
Disposals / Retirements
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
Impact of foreign exchange rate changes
|
|
(147
|
)
|
|
—
|
|
|
(25
|
)
|
|
(2
|
)
|
|
(174
|
)
|
At December 31, 2016
|
|
3,919
|
|
|
19
|
|
|
737
|
|
|
37
|
|
|
4,712
|
|
Additions
|
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
4
|
|
Disposals / Retirements
|
|
(2,160
|
)
|
|
—
|
|
|
(43
|
)
|
|
—
|
|
|
(2,203
|
)
|
Impact of foreign exchange rate changes
|
|
507
|
|
|
—
|
|
|
94
|
|
|
5
|
|
|
606
|
|
At December 31, 2017
|
|
2,268
|
|
|
19
|
|
|
790
|
|
|
42
|
|
|
3,119
|
|
|
|
Accumulated depreciation
|
|||||||||||||
|
|
Equipment
|
|
Furniture and fixtures
|
|
Computer equipment
|
|
Leasehold improvements
|
|
Total
|
|||||
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|||||
At January 1, 2016
|
|
3,873
|
|
|
—
|
|
|
683
|
|
|
11
|
|
|
4,567
|
|
Disposals / Retirements
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
Depreciation expense
|
|
70
|
|
|
2
|
|
|
36
|
|
|
4
|
|
|
112
|
|
Impact of foreign exchange rate changes
|
|
(144
|
)
|
|
—
|
|
|
(25
|
)
|
|
—
|
|
|
(169
|
)
|
At December 31, 2016
|
|
3,799
|
|
|
2
|
|
|
692
|
|
|
15
|
|
|
4,508
|
|
Disposals / Retirements
|
|
(2,135
|
)
|
|
—
|
|
|
(43
|
)
|
|
—
|
|
|
(2,178
|
)
|
Depreciation expense
|
|
50
|
|
|
2
|
|
|
30
|
|
|
18
|
|
|
100
|
|
Impairment loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
Impact of foreign exchange rate changes
|
|
496
|
|
|
—
|
|
|
90
|
|
|
2
|
|
|
588
|
|
At December 31, 2017
|
|
2,210
|
|
|
4
|
|
|
769
|
|
|
36
|
|
|
3,019
|
|
|
|
Carrying amount
|
|||||||||||||
|
|
Equipment
|
|
Furniture and fixtures
|
|
Computer equipment
|
|
Leasehold improvements
|
|
Total
|
|||||
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|||||
At December 31, 2016
|
|
120
|
|
|
17
|
|
|
45
|
|
|
22
|
|
|
204
|
|
At December 31, 2017
|
|
58
|
|
|
15
|
|
|
21
|
|
|
7
|
|
|
101
|
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
|
|
Year ended December 31, 2017
|
|
Year ended December 31, 2016
|
||||||||||||||
|
|
Cost
|
|
Accumulated amortization
|
|
Carrying value
|
|
Cost
|
|
Accumulated amortization
|
|
Carrying value
|
||||||
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
||||||
Balances – Beginning of the year
|
|
30,032
|
|
|
(29,962
|
)
|
|
70
|
|
|
31,151
|
|
|
(30,914
|
)
|
|
237
|
|
Additions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
Impairment (loss) reversal*
|
|
—
|
|
|
44
|
|
|
44
|
|
|
—
|
|
|
(85
|
)
|
|
(85
|
)
|
Recurring amortization expense*
|
|
—
|
|
|
(38
|
)
|
|
(38
|
)
|
|
—
|
|
|
(83
|
)
|
|
(83
|
)
|
Impact of foreign exchange rate changes
|
|
4,214
|
|
|
(4,200
|
)
|
|
14
|
|
|
(1,124
|
)
|
|
1,120
|
|
|
(4
|
)
|
Balances – End of the year
|
|
34,246
|
|
|
(34,156
|
)
|
|
90
|
|
|
30,032
|
|
|
(29,962
|
)
|
|
70
|
|
|
|
Cost
|
|
Accumulated impairment loss
|
|
Carrying amount
|
|||
|
|
$
|
|
$
|
|
$
|
|||
At January 1, 2016
|
|
7,836
|
|
|
—
|
|
|
7,836
|
|
Impact of foreign exchange rate changes
|
|
(283
|
)
|
|
—
|
|
|
(283
|
)
|
At December 31, 2016
|
|
7,553
|
|
|
—
|
|
|
7,553
|
|
Impact of foreign exchange rate changes
|
|
1,060
|
|
|
—
|
|
|
1,060
|
|
At December 31, 2017
|
|
8,613
|
|
|
—
|
|
|
8,613
|
|
|
|
December 31,
|
||||
|
|
2017
|
|
2016
|
||
|
|
$
|
|
$
|
||
Trade accounts payable
|
|
1,222
|
|
|
2,044
|
|
Accrued research and development costs
|
|
127
|
|
|
340
|
|
Salaries, employment taxes and benefits
|
|
390
|
|
|
156
|
|
Current portion of onerous contract provisions (note 15)
|
|
173
|
|
|
295
|
|
Other accrued liabilities
|
|
1,075
|
|
|
910
|
|
|
|
2,987
|
|
|
3,745
|
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
|
|
Resource Optimization Program
|
|
Corporate Restructuring
|
|
German Restructuring
|
|
Total
|
||||
|
|
$
|
|
$
|
|
$
|
|
$
|
||||
January 1, 2016
|
|
75
|
|
|
557
|
|
|
—
|
|
|
632
|
|
Utilization of provision
|
|
(43
|
)
|
|
(523
|
)
|
|
—
|
|
|
(566
|
)
|
Change in the provision
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
(8
|
)
|
Impact of foreign exchange rate changes
|
|
1
|
|
|
(26
|
)
|
|
—
|
|
|
(25
|
)
|
December 31, 2016
|
|
33
|
|
|
—
|
|
|
—
|
|
|
33
|
|
Provision recognized
|
|
—
|
|
|
—
|
|
|
3,115
|
|
|
3,115
|
|
Utilization of provision
|
|
(33
|
)
|
|
—
|
|
|
(157
|
)
|
|
(190
|
)
|
Change in the provision
|
|
—
|
|
|
—
|
|
(32
|
)
|
|
(32
|
)
|
|
Impact of foreign exchange rate changes
|
|
—
|
|
|
—
|
|
|
88
|
|
|
88
|
|
December 31, 2017
|
|
—
|
|
|
—
|
|
|
3,014
|
|
|
3,014
|
|
Less: current portion
|
|
—
|
|
|
—
|
|
|
(2,296
|
)
|
|
(2,296
|
)
|
Non-current portion*
|
|
—
|
|
|
—
|
|
|
718
|
|
|
718
|
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
|
|
Years ended December 31,
|
|||||||
|
|
2017
|
|
2016
|
|
2015
|
|||
|
|
$
|
|
$
|
|
$
|
|||
Balance – Beginning of the year
|
|
6,854
|
|
|
10,891
|
|
|
8,225
|
|
Share purchase warrants issued during the year (note 16)
|
|
—
|
|
|
400
|
|
|
28,678
|
|
Derecognition due to early expiry (note 16)
|
|
—
|
|
|
—
|
|
|
(5,865
|
)
|
Share purchase warrants exercised during the year
|
|
(735
|
)
|
|
—
|
|
|
(31,103
|
)
|
Change in fair value of share purchase warrants
|
|
(2,222
|
)
|
|
(4,437
|
)
|
|
10,956
|
|
Balance - End of the year
|
|
3,897
|
|
|
6,854
|
|
|
10,891
|
|
Less: current portion
|
|
—
|
|
|
—
|
|
|
(1,411
|
)
|
Non-current portion
|
|
3,897
|
|
|
6,854
|
|
|
9,480
|
|
|
|
Years ended December 31,
|
|
||||||||||||||||
|
|
2017
|
|
2016
|
|
2015
|
|
||||||||||||
|
|
Number
|
|
Weighted average exercise price ($)
|
|
Number
|
|
Weighted average exercise price ($)
|
|
Number
|
|
Weighted average exercise price ($)
|
|
||||||
Balance – Beginning of the year
|
|
3,779,245
|
|
|
9.66
|
|
*
|
2,842,309
|
|
|
11.30
|
|
*
|
287,852
|
|
|
104.46
|
|
|
Issued (note 16)
|
|
—
|
|
|
—
|
|
|
945,000
|
|
|
4.70
|
|
|
3,076,956
|
|
|
5.94
|
|
*
|
Exercised
|
|
(331,730
|
)
|
**
|
1.07
|
|
|
—
|
|
|
—
|
|
|
(298,088
|
)
|
|
4.24
|
|
|
Expired (note 16)
|
|
(29,675
|
)
|
|
345.00
|
|
|
(8,064
|
)
|
|
4.23
|
|
|
(224,111
|
)
|
|
66.90
|
|
|
Balance – End of the year
|
|
3,417,840
|
|
|
7.59
|
|
|
3,779,245
|
|
|
9.66
|
|
|
2,842,309
|
|
|
11.30
|
|
|
*
|
As adjusted (
note 16 - Share capital
)
|
|
|
|
|||
Exercise price ($)
|
|
Number
|
|
Weighted average remaining contractual life (years)
|
|
1.07
|
|
115,844
|
|
|
2.19
|
4.70
|
|
945,000
|
|
|
2.34
|
7.10
|
|
2,331,000
|
|
|
2.96
|
185.00
|
|
25,996
|
|
|
0.58
|
|
|
3,417,840
|
|
|
2.74
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
|
|
Number of equivalent shares
|
|
Market-value per share price ($)
|
|
Weighted average exercise price ($)
|
|
Risk-free annual interest rate (a)
|
|
Expected volatility
(b)
|
|
Expected life (years) (c)
|
|
Expected dividend yield
(d)
|
||||||
July 2013 Warrants
|
|
25,996
|
|
|
2.36
|
|
|
185.00
|
|
|
1.75
|
%
|
|
136.18
|
%
|
|
0.58
|
|
0.00
|
%
|
March 2015 Series A Warrants (e)
|
|
115,844
|
|
|
2.36
|
|
|
1.07
|
|
|
1.90
|
%
|
|
132.24
|
%
|
|
2.19
|
|
0.00
|
%
|
December 2015 Warrants
|
|
2,331,000
|
|
|
2.36
|
|
|
7.10
|
|
|
1.97
|
%
|
|
137.02
|
%
|
|
2.96
|
|
0.00
|
%
|
November 2016 Warrants (f)
|
|
945,000
|
|
|
2.36
|
|
|
4.70
|
|
|
1.91
|
%
|
|
145.04
|
%
|
|
2.34
|
|
0.00
|
%
|
(a)
|
Based on United States Treasury Government Bond interest rates with a term that is consistent with the expected life of the warrants.
|
(b)
|
Based on the historical volatility of the Company's stock price over the most recent period consistent with the expected life of the warrants, as well as on future expectations.
|
(c)
|
Based upon time to expiry from the reporting period date.
|
(d)
|
The Company has not paid dividends and it does not intend to pay dividends in the foreseeable future.
|
(e)
|
For the
March 2015
Series A Warrants, the inputs and assumptions applied to the Black-Scholes option pricing model have been further adjusted to take into consideration the value attributed to certain anti-dilution provisions. Specifically, the weighted average exercise price is subject to adjustment (see
note 16 - Share capital
).
|
(f)
|
For the
November 2016
Warrants, the Company reduced the fair value of these warrants to take into consideration the fair value of the
$10
call option, which was also calculated using the Black-Scholes pricing model. (see
note 16 - Share capital
).
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
|
|
December 31,
|
||||
|
|
2017
|
|
2016
|
||
|
|
$
|
|
$
|
||
Onerous contract provisions (detailed below)
|
|
310
|
|
|
404
|
|
Non-current portion of provision for restructuring costs (note 13)
|
|
718
|
|
|
—
|
|
Other
|
|
—
|
|
|
97
|
|
|
|
1,028
|
|
|
501
|
|
|
|
Cetrotide
®
onerous contracts*
|
|
Onerous lease**
|
|
Total
|
|||
|
|
$
|
|
$
|
|
$
|
|||
At January 1, 2016
|
|
803
|
|
|
234
|
|
|
1,037
|
|
Change in the provision
|
|
(24
|
)
|
|
—
|
|
|
(24
|
)
|
Utilization of provision
|
|
(196
|
)
|
|
(113
|
)
|
|
(309
|
)
|
Unwinding of discount and effect of changes in the discount and foreign exchange rates
|
|
(9
|
)
|
|
4
|
|
|
(5
|
)
|
At December 31, 2016
|
|
574
|
|
|
125
|
|
|
699
|
|
Less: current portion (note 12)
|
|
(181
|
)
|
|
(114
|
)
|
|
(295
|
)
|
|
|
393
|
|
|
11
|
|
|
404
|
|
|
|
|
|
|
|
|
|||
At December 31, 2016
|
|
574
|
|
|
125
|
|
|
699
|
|
Change in the provision
|
|
(20
|
)
|
|
—
|
|
|
(20
|
)
|
Utilization of provision
|
|
(145
|
)
|
|
(119
|
)
|
|
(264
|
)
|
Unwinding of discount and effect of changes in the discount and foreign exchange rates
|
|
64
|
|
|
3
|
|
|
67
|
|
At December 31, 2017
|
|
473
|
|
|
9
|
|
|
482
|
|
Less: current portion (note 12)
|
|
(163
|
)
|
|
(9
|
)
|
|
(172
|
)
|
|
|
310
|
|
|
—
|
|
|
310
|
|
*
|
Recorded following the transfer of the Cetrotide
®
Business (discontinued operations).
|
**
|
Represents the present value of the future lease payments that the Company is obligated to make pursuant to a non-cancellable operating lease in the United States, net of estimated future sublease income. The estimate may vary as a result of changes in the utilization of the leased premises and of the sublease arrangement. The lease expired in January 2018.
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
|
|
Years ended December 31,
|
||||||||||||||||
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||
US dollar-denominated options
|
|
Number
|
|
Weighted average exercise price (US$)
|
|
Number
|
|
Weighted average exercise price (US$)
|
|
Number
|
|
Weighted average exercise price (US$)
|
||||||
Balance – Beginning of the year
|
|
966,539
|
|
|
7.23
|
|
|
272,874
|
|
|
25.88
|
|
|
33,956
|
|
|
187.36
|
|
Granted
|
|
390,000
|
|
|
2.05
|
|
|
713,573
|
|
|
3.47
|
|
|
243,000
|
|
|
5.17
|
|
Forfeited
|
|
(643,271
|
)
|
|
6.02
|
|
|
(10,034
|
)
|
|
99.22
|
|
|
(4,082
|
)
|
|
136.17
|
|
Cancelled
|
|
—
|
|
|
—
|
|
|
(9,874
|
)
|
|
157.00
|
|
|
—
|
|
|
—
|
|
Expired
|
|
(853
|
)
|
|
704.88
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Balance – End of period
|
|
712,415
|
|
|
4.66
|
|
|
966,539
|
|
|
7.23
|
|
|
272,874
|
|
|
25.88
|
|
|
|
Years ended December 31,
|
||||||||||||||||
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Canadian dollar-denominated options
|
|
Number
|
|
Weighted average exercise price (CAN$)
|
|
Number
|
|
Weighted average exercise price (CAN$)
|
|
Number
|
|
Weighted average exercise price (CAN$)
|
||||||
Balance – Beginning of the year
|
|
1,858
|
|
|
820.27
|
|
|
3,787
|
|
|
845.46
|
|
|
4,909
|
|
|
1,010.40
|
|
Forfeited
|
|
—
|
|
|
—
|
|
|
(1,028
|
)
|
|
967.63
|
|
|
(271
|
)
|
|
923.20
|
|
Cancelled
|
|
—
|
|
|
—
|
|
|
(901
|
)
|
|
758.00
|
|
|
—
|
|
|
—
|
|
Expired
|
|
(355
|
)
|
|
1,728.15
|
|
|
—
|
|
|
—
|
|
|
(851
|
)
|
|
1,772.17
|
|
Balance – End of the year
|
|
1,503
|
|
|
605.84
|
|
|
1,858
|
|
|
820.27
|
|
|
3,787
|
|
|
845.46
|
|
|
|
US$ options outstanding as at December 31, 2017
|
||||||
Exercise price
(US$)
|
|
Number
|
|
Weighted average remaining
contractual life (years) |
|
Weighted average exercise price
(US$)
|
||
2.05 to 2.75
|
|
390,000
|
|
|
6.62
|
|
2.05
|
|
2.76 to 3.47
|
|
168,864
|
|
|
5.93
|
|
3.45
|
|
3.48 to 3.49
|
|
50,000
|
|
|
5.35
|
|
3.48
|
|
3.50 to 4.19
|
|
32,498
|
|
|
5.94
|
|
3.77
|
|
4.20 to 1,044.00
|
|
71,053
|
|
|
4.89
|
|
23.09
|
|
|
|
712,415
|
|
|
6.17
|
|
4.66
|
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
|
|
US$ options exercisable as at December 31, 2017
|
|||||||
Exercise price
(US$)
|
|
Number
|
|
Weighted average remaining
contractual life (years) |
|
Weighted average exercise price
(US$)
|
|||
2.76 to 3.47
|
|
56,851
|
|
|
5.93
|
|
|
3.45
|
|
3.48 to 3.49
|
|
16,669
|
|
|
5.35
|
|
|
3.48
|
|
3.50 to 4.19
|
|
10,834
|
|
|
5.94
|
|
|
3.77
|
|
4.20 to 1,044.00
|
|
49,055
|
|
|
4.86
|
|
|
31.39
|
|
|
|
133,409
|
|
|
5.46
|
|
|
13.75
|
|
|
|
CAN$ options outstanding and exercisable as at December 31, 2017
|
|||||||
Exercise price
(CAN$)
|
|
Number
|
|
Weighted average remaining
contractual life (years) |
|
Weighted average exercise price
(CDN$)
|
|||
330.00 to 360.00
|
|
197
|
|
|
0.92
|
|
|
330.00
|
|
360.01 to 480.00
|
|
333
|
|
|
0.87
|
|
|
390.00
|
|
480.01 to 741.00
|
|
502
|
|
|
1.94
|
|
|
570.00
|
|
741.01 to 912.00
|
|
471
|
|
|
2.87
|
|
|
912.00
|
|
|
|
1,503
|
|
|
1.86
|
|
|
605.84
|
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
|
|
Years ended December 31,
|
|
||||||
|
|
2017
|
|
|
2016
|
|
|||
Expected dividend yield
|
(a)
|
0.00
|
|
%
|
|
0.00
|
|
%
|
|
Expected volatility
|
(b)
|
137.60
|
|
%
|
|
115.10
|
|
%
|
|
Risk-free annual interest rate
|
(c)
|
1.53
|
|
%
|
|
1.80
|
|
%
|
|
Expected life (years)
|
(d)
|
|
3.26
|
|
|
|
4.92
|
|
|
Weighted average share price
|
|
$2.05
|
|
|
$3.47
|
|
|||
Weighted average exercise price
|
|
$2.05
|
|
|
$3.47
|
|
|||
Weighted average grant date fair value
|
|
$1.62
|
|
|
$2.80
|
|
(a)
|
The Company has not paid dividends and it does not intend to pay dividends in the foreseeable future.
|
(b)
|
Based on the historical volatility of the Company's stock price over the most recent period consistent with the expected life of the stock options, as well as on future expectations.
|
(c)
|
Based on United States Treasury Government Bond interest rates with a term that is consistent with the expected life of the stock options.
|
(d)
|
Based upon historical data related to the exercise of stock options, on post-vesting employment terminations and on future expectations related to exercise behavior.
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
|
|
Years ended December 31,
|
|||||||
|
|
2017
|
|
2016
|
|
2015
|
|||
|
|
$
|
|
$
|
|
$
|
|||
Key management personnel compensation
(1)
|
|
|
|
|
|
|
|||
Salaries and short-term employee benefits
|
|
2,081
|
|
|
2,430
|
|
|
2,957
|
|
Termination benefits
|
|
—
|
|
|
—
|
|
|
843
|
|
Post-employment benefits
|
|
59
|
|
|
78
|
|
|
119
|
|
Share-based compensation costs
|
|
87
|
|
|
1,051
|
|
|
828
|
|
|
|
2,227
|
|
|
3,559
|
|
|
4,747
|
|
Other employees compensation:
|
|
|
|
|
|
|
|||
Salaries and short-term employee benefits
|
|
3,584
|
|
|
3,574
|
|
|
4,431
|
|
Termination benefits
|
|
1,806
|
|
|
—
|
|
|
245
|
|
Post-employment benefits
|
|
441
|
|
|
500
|
|
|
511
|
|
Share-based compensation costs
|
|
95
|
|
|
31
|
|
|
91
|
|
|
|
5,926
|
|
|
4,105
|
|
|
5,278
|
|
Goods and services
(2)
|
|
13,575
|
|
|
21,217
|
|
|
21,429
|
|
Leasing costs, net of sublease receipts of $359 in 2017, $345 in 2016 and $380 in 2015
(3)
|
|
2,247
|
|
|
1,131
|
|
|
1,452
|
|
Refundable tax credits and grants
|
|
—
|
|
|
—
|
|
|
(23
|
)
|
Onerous contract expenses resulting from the Restructuring
|
|
—
|
|
|
—
|
|
|
(202
|
)
|
Transaction costs related to share purchase warrants
|
|
—
|
|
|
56
|
|
|
2,208
|
|
Depreciation and amortization
|
|
138
|
|
|
195
|
|
|
271
|
|
Impairment (reversal) losses
|
|
(44
|
)
|
|
85
|
|
|
70
|
|
Operating foreign exchange (gains) losses
|
|
(72
|
)
|
|
39
|
|
|
199
|
|
|
|
15,844
|
|
|
22,723
|
|
|
25,404
|
|
|
|
23,997
|
|
|
30,387
|
|
|
35,429
|
|
(1)
|
Key management includes the Company's directors and members of the executive management team.
|
(2)
|
Goods and services include third-party R&D costs, laboratory supplies, professional fees, contracted sales force costs, marketing services, insurance and travel expenses.
|
(3)
|
Leasing costs also include changes in the onerous lease provision (note 15 - provisions ), other than attributable to the unwinding of the discount.
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
|
|
Pension benefit plans
Years ended December 31, |
|
Other benefit plans
Years ended December 31, |
||||||||||||||
|
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
||||||
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
||||||
Balances – Beginning of the year
|
|
13,197
|
|
|
12,375
|
|
|
14,619
|
|
|
217
|
|
|
281
|
|
|
433
|
|
Current service cost
|
|
107
|
|
|
87
|
|
|
103
|
|
|
14
|
|
|
13
|
|
|
14
|
|
Interest cost
|
|
237
|
|
|
282
|
|
|
260
|
|
|
3
|
|
|
—
|
|
|
8
|
|
Actuarial (gain) loss arising from changes in financial assumptions
|
|
(694
|
)
|
|
1,479
|
|
|
(844
|
)
|
|
(115
|
)
|
|
—
|
|
|
(34
|
)
|
Benefits paid
|
|
(485
|
)
|
|
(399
|
)
|
|
(410
|
)
|
|
(66
|
)
|
|
(60
|
)
|
|
(97
|
)
|
Impact of foreign exchange rate changes
|
|
1,783
|
|
|
(627
|
)
|
|
(1,353
|
)
|
|
31
|
|
|
(17
|
)
|
|
(43
|
)
|
Balances – End of the year
|
|
14,145
|
|
|
13,197
|
|
|
12,375
|
|
|
84
|
|
|
217
|
|
|
281
|
|
Amounts recognized:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
In net loss
|
|
(344
|
)
|
|
(369
|
)
|
|
(363
|
)
|
|
98
|
|
|
(13
|
)
|
|
12
|
|
In other comprehensive loss
|
|
(1,089
|
)
|
|
(852
|
)
|
|
2,197
|
|
|
(31
|
)
|
|
17
|
|
|
43
|
|
|
|
Pension benefit plans
|
|
Other benefit plans
|
||||||||
|
|
Years ended December 31,
|
|
Years ended December 31,
|
||||||||
Actuarial assumptions
|
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
Discount rate
|
|
1.70
|
|
1.60
|
|
2.40
|
|
1.70
|
|
1.60
|
|
2.40
|
Pension benefits increase
|
|
1.80
|
|
1.80
|
|
1.80
|
|
1.80
|
|
1.80
|
|
2.40
|
Rate of compensation increase
|
|
2.00
|
|
2.00
|
|
2.00
|
|
2.00
|
|
2.00
|
|
2.00
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
|
|
2017
|
|
2016
|
|
2015
|
Retiring at the end of the reporting period:
|
|
|
|
|
|
|
Male
|
|
20
|
|
20
|
|
19
|
Female
|
|
24
|
|
24
|
|
23
|
Retiring 20 years after the end of the reporting period:
|
|
|
|
|
|
|
Male
|
|
22
|
|
22
|
|
22
|
Female
|
|
26
|
|
26
|
|
26
|
|
|
$
|
|
2018
|
|
522
|
|
2019
|
|
541
|
|
2020
|
|
553
|
|
2021
|
|
558
|
|
2022
|
|
564
|
|
Thereafter
|
|
16,589
|
|
|
|
19,327
|
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
|
|
Years ended December 31,
|
|||||||
|
|
2017
|
|
2016
|
|
2015
|
|||
|
|
$
|
|
$
|
|
$
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|||
Trade and other receivables
|
|
158
|
|
|
228
|
|
|
270
|
|
Prepaid expenses and other current assets
|
|
(343
|
)
|
|
(45
|
)
|
|
(111
|
)
|
Other non-current assets
|
|
39
|
|
|
(233
|
)
|
|
58
|
|
Payables and accrued liabilities
|
|
(1,113
|
)
|
|
(313
|
)
|
|
(1,013
|
)
|
Deferred revenues
|
|
—
|
|
|
555
|
|
|
—
|
|
Provision for restructuring costs (note 13)
|
|
(190
|
)
|
|
(566
|
)
|
|
(1,840
|
)
|
Employee future benefits (note 18)
|
|
(551
|
)
|
|
(459
|
)
|
|
(507
|
)
|
Provisions
|
|
(212
|
)
|
|
(231
|
)
|
|
(252
|
)
|
|
|
(2,212
|
)
|
|
(1,064
|
)
|
|
(3,395
|
)
|
|
|
Years ended December 31,
|
|||||||
|
|
2017
|
|
2016
|
|
2015
|
|||
|
|
$
|
|
$
|
|
$
|
|||
Current tax expense
|
|
—
|
|
|
—
|
|
|
—
|
|
Deferred tax:
|
|
|
|
|
|
|
|||
Origination and reversal of temporary differences
|
|
6,395
|
|
|
9,199
|
|
|
8,581
|
|
Adjustments in respect of prior years
|
|
(149
|
)
|
|
36
|
|
|
—
|
|
Change in unrecognized tax assets
|
|
(2,767
|
)
|
|
(9,235
|
)
|
|
(8,581
|
)
|
Income tax expense
|
|
3,479
|
|
|
—
|
|
|
—
|
|
|
|
Years ended December 31,
|
|||||||
|
|
2017
|
|
2016
|
|
2015
|
|||
Combined Canadian federal and provincial statutory income tax rate
|
|
26.8
|
%
|
|
26.9
|
%
|
|
26.9
|
%
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
|
|
Years ended December 31,
|
|||||||
|
|
2017
|
|
2016
|
|
2015
|
|||
|
|
$
|
|
$
|
|
$
|
|||
Income tax recovery based on combined statutory income tax rate
|
|
5,434
|
|
|
6,714
|
|
|
13,511
|
|
Change in unrecognized tax assets
|
|
(2,701
|
)
|
|
(9,235
|
)
|
|
(8,581
|
)
|
Change in unrecognized tax assets related to OCI
|
|
(228
|
)
|
|
436
|
|
|
(269
|
)
|
Share issuance costs
|
|
164
|
|
|
224
|
|
|
—
|
|
Permanent difference attributable to the use of local currency for tax reporting
|
|
(71
|
)
|
|
(30
|
)
|
|
(1,297
|
)
|
Change in enacted rates used
|
|
(358
|
)
|
|
(16
|
)
|
|
—
|
|
Permanent difference attributable to net change in fair value of warrant liability
|
|
595
|
|
|
1,194
|
|
|
(3,754
|
)
|
Share-based compensation costs
|
|
(49
|
)
|
|
(291
|
)
|
|
(248
|
)
|
Difference in statutory income tax rate of foreign subsidiaries
|
|
768
|
|
|
972
|
|
|
1,135
|
|
Permanent difference attributable to expiring loss carry forward
|
|
—
|
|
|
—
|
|
|
(563
|
)
|
Adjustments in respect of prior years
|
|
(149
|
)
|
|
36
|
|
|
—
|
|
Other
|
|
74
|
|
|
(4
|
)
|
|
66
|
|
|
|
3,479
|
|
|
—
|
|
|
—
|
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
|
|
December 31,
|
||||
|
|
2017
|
|
2016
|
||
|
|
$
|
|
$
|
||
Deferred tax assets
|
|
|
|
|
||
Current:
|
|
|
|
|
||
Operating losses carried forward
|
|
3,479
|
|
|
—
|
|
Non-current:
|
|
|
|
|
||
Operating losses carried forward
|
|
696
|
|
|
1,009
|
|
Intangible assets
|
|
4,812
|
|
|
5,199
|
|
|
|
8,987
|
|
|
6,208
|
|
Deferred tax liabilities
|
|
|
|
|
||
Current:
|
|
|
|
|
||
Payables and accrued liabilities
|
|
—
|
|
|
109
|
|
|
|
—
|
|
|
109
|
|
Non-current:
|
|
|
|
|
||
Property, plant and equipment
|
|
5
|
|
|
7
|
|
Deferred revenues
|
|
5,316
|
|
|
5,658
|
|
Warrant liability
|
|
—
|
|
|
386
|
|
Other
|
|
187
|
|
|
48
|
|
|
|
5,508
|
|
|
6,099
|
|
|
|
5,508
|
|
|
6,208
|
|
Deferred tax assets (liabilities), net
|
|
3,479
|
|
|
—
|
|
|
|
December 31,
|
||||
|
|
2017
|
|
2016
|
||
|
|
$
|
|
$
|
||
Deferred tax assets
|
|
|
|
|
||
Current:
|
|
|
|
|
||
Deferred revenues and other provisions
|
|
584
|
|
|
217
|
|
|
|
584
|
|
|
217
|
|
Non-current:
|
|
|
|
|
||
Deferred Revenues
|
|
—
|
|
|
—
|
|
Operating losses carried forward
|
|
82,421
|
|
|
71,654
|
|
Research and development costs
|
|
9,167
|
|
|
9,195
|
|
Unused tax credits
|
|
8,019
|
|
|
8,019
|
|
Employee future benefits
|
|
2,296
|
|
|
2,275
|
|
Property, plant and equipment
|
|
407
|
|
|
175
|
|
Share issuance expenses
|
|
841
|
|
|
941
|
|
Onerous contract provisions
|
|
—
|
|
|
26
|
|
Intangible assets
|
|
—
|
|
|
189
|
|
Other
|
|
335
|
|
|
144
|
|
|
|
103,486
|
|
|
92,618
|
|
Unrecognized deferred tax assets
|
|
104,070
|
|
|
92,835
|
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
December 31, 2017
|
|
Loans and
receivables |
|
Financial
liabilities at FVTPL |
|
Other
financial liabilities |
|
Total
|
||||
|
|
$
|
|
$
|
|
$
|
|
$
|
||||
Cash and cash equivalents (note 6)
|
|
7,780
|
|
|
—
|
|
|
—
|
|
|
7,780
|
|
Trade and other receivables (note 8)
|
|
35
|
|
|
—
|
|
|
—
|
|
|
35
|
|
Restricted cash equivalents
|
|
381
|
|
|
—
|
|
|
—
|
|
|
381
|
|
Payables and accrued liabilities (note 12)
|
|
—
|
|
|
—
|
|
|
(2,689
|
)
|
|
(2,689
|
)
|
Provision for restructuring costs (note 13)
|
|
—
|
|
|
—
|
|
|
(1,806
|
)
|
|
(1,806
|
)
|
Warrant liability (note 14)
|
|
—
|
|
|
(3,897
|
)
|
|
—
|
|
|
(3,897
|
)
|
|
|
8,196
|
|
|
(3,897
|
)
|
|
(4,495
|
)
|
|
(196
|
)
|
December 31, 2016
|
|
Loans and receivables
|
|
Financial liabilities at FVTPL
|
|
Other financial liabilities
|
|
Total
|
||||
|
|
$
|
|
$
|
|
$
|
|
$
|
||||
Cash and cash equivalents (note 6)
|
|
21,999
|
|
|
—
|
|
|
—
|
|
|
21,999
|
|
Trade and other receivables (note 8)
|
|
235
|
|
|
—
|
|
|
—
|
|
|
235
|
|
Restricted cash equivalents
|
|
496
|
|
|
—
|
|
|
—
|
|
|
496
|
|
Payables and accrued liabilities (note 12)
|
|
—
|
|
|
—
|
|
|
(3,352
|
)
|
|
(3,352
|
)
|
Provision for restructuring costs (note 13)
|
|
—
|
|
|
—
|
|
|
(33
|
)
|
|
(33
|
)
|
Warrant liability (note 14)
|
|
—
|
|
|
(6,854
|
)
|
|
—
|
|
|
(6,854
|
)
|
Other non-current liabilities (note 15)
|
|
—
|
|
|
—
|
|
|
(97
|
)
|
|
(97
|
)
|
|
|
22,730
|
|
|
(6,854
|
)
|
|
(3,482
|
)
|
|
12,394
|
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
|
|
Carrying
amount |
|
-30%
|
|
+30%
|
|||
|
|
$
|
|
$
|
|
$
|
|||
Warrant liability
|
|
3,897
|
|
|
1,359
|
|
|
(1,474
|
)
|
Total impact on net loss – decrease / (increase)
|
|
|
|
1,359
|
|
|
(1,474
|
)
|
|
|
Years ended December 31,
|
|||||||
|
|
2017
|
|
2016
|
|
2015
|
|||
|
|
$
|
|
$
|
|
$
|
|||
United States
|
|
452
|
|
|
410
|
|
|
217
|
|
China
|
|
262
|
|
|
249
|
|
|
302
|
|
Singapore
|
|
—
|
|
|
101
|
|
|
—
|
|
British Virgin Islands
|
|
206
|
|
|
100
|
|
|
—
|
|
Switzerland
|
|
—
|
|
|
—
|
|
|
312
|
|
Other
|
|
3
|
|
|
51
|
|
|
45
|
|
|
|
923
|
|
|
911
|
|
|
876
|
|
Amounts presented:
|
|
|
|
|
|
|
|||
Within discontinued operations
|
|
—
|
|
|
—
|
|
|
331
|
|
Within continuing operations
|
|
923
|
|
|
911
|
|
|
545
|
|
|
|
923
|
|
|
911
|
|
|
876
|
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
|
|
December 31,
|
||||
|
|
2017
|
|
2016
|
||
|
|
$
|
|
$
|
||
Germany
|
|
8,792
|
|
|
7,793
|
|
United States
|
|
2
|
|
|
2
|
|
Canada
|
|
10
|
|
|
32
|
|
|
|
8,804
|
|
|
7,827
|
|
*
|
Non-current assets include property, plant and equipment, identifiable intangible assets and goodwill.
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
|
|
Years ended December 31,
|
|||||||
|
|
2017
|
|
2016
|
|
2015
|
|||
|
|
$
|
|
$
|
|
$
|
|||
Net loss from continuing operations
|
|
(16,796
|
)
|
|
(24,959
|
)
|
|
(50,228
|
)
|
Net income from discontinued operations
|
|
—
|
|
|
—
|
|
|
85
|
|
Net loss
|
|
(16,796
|
)
|
|
(24,959
|
)
|
|
(50,143
|
)
|
Basic and diluted weighted average number of shares outstanding
|
|
14,958,704
|
|
|
10,348,879
|
|
|
2,763,603
|
|
Items excluded from the calculation of diluted net loss per share because the exercise price was greater than the average market price of the common shares or due to their anti-dilutive effect
|
|
|
|
|
|
|
|||
Stock options
|
|
713,918
|
|
|
968,397
|
|
|
276,661
|
|
Share purchase warrants
|
|
3,417,840
|
|
|
3,779,245
|
|
|
2,842,309
|
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
|
|
Minimum lease payments
|
|
Minimum sublease receipts
|
|
Service and manufacturing
|
|||
|
|
$
|
|
$
|
|
$
|
|||
Less than 1 year
|
|
448
|
|
|
(143
|
)
|
|
403
|
|
1 - 3 years
|
|
633
|
|
|
(26
|
)
|
|
283
|
|
4 - 5 years
|
|
105
|
|
|
—
|
|
|
259
|
|
More than 5 years
|
|
100
|
|
|
—
|
|
|
250
|
|
Total
|
|
1,286
|
|
|
(169
|
)
|
|
1,195
|
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
Aeterna Zentaris Inc.
|
||
Notes to Consolidated Financial Statements
|
||
As at December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016 and 2015
|
||
(tabular amounts in thousands of US dollars, except share/option/warrant and per share/option/warrant data and as otherwise noted)
|
•
|
$4,000,000 on achieving $25,000,000 annual net sales,
|
•
|
$10,000,000 on achieving $50,000,000 annual net sales,
|
•
|
$20,000,000 on achieving $100,000,000 annual net sales,
|
•
|
$40,000,000 on achieving $200,000,000 annual net sales, and
|
•
|
$100,000,000 on achieving $500,000,000 annual net sales.
|
|
|
Three months ended December 31,
|
|
Years ended December 31,
|
|||||||||||
(in thousands, except share and per share data)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2015
|
|||||
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|||||
Sales commission and other
|
|
59
|
|
|
94
|
|
|
465
|
|
|
414
|
|
|
297
|
|
License fees
|
|
119
|
|
|
210
|
|
|
458
|
|
|
497
|
|
|
248
|
|
Total revenues
|
|
178
|
|
|
304
|
|
|
923
|
|
|
911
|
|
|
545
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Research and development costs
|
|
526
|
|
|
4,619
|
|
|
10,704
|
|
|
16,495
|
|
|
17,234
|
|
General and administrative expenses
|
|
2,778
|
|
|
1,757
|
|
|
8,198
|
|
|
7,147
|
|
|
11,308
|
|
Selling expenses
|
|
452
|
|
|
1,526
|
|
|
5,095
|
|
|
6,745
|
|
|
6,887
|
|
Total operating expenses
|
|
3,756
|
|
|
7,902
|
|
|
23,997
|
|
|
30,387
|
|
|
35,429
|
|
Loss from operations
|
|
(3,578
|
)
|
|
(7,598
|
)
|
|
(23,074
|
)
|
|
(29,476
|
)
|
|
(34,884
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Gain (loss) due to changes in foreign currency exchange rates
|
|
72
|
|
|
(396
|
)
|
|
502
|
|
|
(70
|
)
|
|
(1,767
|
)
|
Change in fair value of warrant liability
|
|
(478
|
)
|
|
(245
|
)
|
|
2,222
|
|
|
4,437
|
|
|
(10,956
|
)
|
Warrant exercise inducement fee
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,926
|
)
|
Other finance income
|
|
21
|
|
|
19
|
|
|
75
|
|
|
150
|
|
|
305
|
|
Net finance income (costs)
|
|
(385
|
)
|
|
(622
|
)
|
|
2,799
|
|
|
4,517
|
|
|
(15,344
|
)
|
Loss before income taxes
|
|
(3,963
|
)
|
|
(8,220
|
)
|
|
(20,275
|
)
|
|
(24,959
|
)
|
|
(50,228
|
)
|
Income tax recovery
|
|
3,479
|
|
|
—
|
|
|
3,479
|
|
|
—
|
|
|
—
|
|
Net loss from continuing operations
|
|
(484
|
)
|
|
(8,220
|
)
|
|
(16,796
|
)
|
|
(24,959
|
)
|
|
(50,228
|
)
|
Net income from discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
85
|
|
Net loss
|
|
(484
|
)
|
|
(8,220
|
)
|
|
(16,796
|
)
|
|
(24,959
|
)
|
|
(50,143
|
)
|
Other comprehensive loss:
|
|
|
|
|
|
|
|
|
|
|
|||||
Items that may be reclassified subsequently to profit or loss:
|
|
|
|
|
|
|
|
|
|
|
|||||
Foreign currency translation adjustments
|
|
(238
|
)
|
|
870
|
|
|
(1,430
|
)
|
|
569
|
|
|
1,509
|
|
Items that will not be reclassified to profit or loss:
|
|
|
|
|
|
|
|
|
|
|
|||||
Actuarial gain (loss) on defined benefit plans
|
|
59
|
|
|
1,143
|
|
|
694
|
|
|
(1,479
|
)
|
|
844
|
|
Comprehensive loss
|
|
(663
|
)
|
|
(6,207
|
)
|
|
(17,532
|
)
|
|
(25,869
|
)
|
|
(47,790
|
)
|
Net loss per share (basic and diluted) from continuing operations
|
|
(0.03
|
)
|
|
(0.71
|
)
|
|
(1.12
|
)
|
|
(2.41
|
)
|
|
(18.17
|
)
|
Net income per share (basic and diluted) from discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.03
|
|
Net loss per share (basic and diluted)
|
|
(0.03
|
)
|
|
(0.71
|
)
|
|
(1.12
|
)
|
|
(2.41
|
)
|
|
(18.14
|
)
|
Weighted average number of shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
|
|
16,440,760
|
|
|
11,565,210
|
|
|
14,958,704
|
|
|
10,348,879
|
|
|
2,763,603
|
|
|
|
Three months ended December 31,
|
|
Years ended December 31,
|
|
|||||||||||
(in thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2015
|
|
|||||
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||
Third-party costs
|
|
(539
|
)
|
|
3,233
|
|
|
3,936
|
|
|
11,829
|
|
|
11,891
|
|
|
Employee compensation and benefits
|
|
822
|
|
|
845
|
|
|
4,868
|
|
*
|
3,216
|
|
|
3,699
|
|
|
Facilities rent and maintenance
|
|
273
|
|
|
232
|
|
|
1,898
|
|
**
|
873
|
|
|
940
|
|
|
Other costs
***
|
|
86
|
|
|
309
|
|
|
138
|
|
|
579
|
|
|
727
|
|
|
Gain on disposal of equipment
|
|
(116
|
)
|
|
—
|
|
|
(136
|
)
|
|
(2
|
)
|
|
(23
|
)
|
|
|
|
526
|
|
|
4,619
|
|
|
10,704
|
|
|
16,495
|
|
|
17,234
|
|
|
(in thousands, except percentages)
|
|
Three months ended December 31,
|
||||||||||
Product Candidate
|
|
2017
|
|
2016
|
||||||||
|
|
$
|
|
%
|
|
$
|
|
%
|
||||
Zoptrex™
|
|
(89
|
)
|
|
16.5
|
|
|
1,453
|
|
|
44.9
|
|
Macrilen™
|
|
(471
|
)
|
|
87.4
|
|
|
1,568
|
|
|
48.5
|
|
LHRH - Disorazol Z
|
|
1
|
|
|
(0.2
|
)
|
|
86
|
|
|
2.7
|
|
Erk inhibitors
|
|
—
|
|
|
—
|
|
|
16
|
|
|
0.5
|
|
Other
|
|
20
|
|
|
(3.7
|
)
|
|
110
|
|
|
3.4
|
|
|
|
(539
|
)
|
|
100.0
|
|
|
3,233
|
|
|
100.0
|
|
(in thousands, except percentages)
|
|
Years ended December 31,
|
||||||||||||||||
Product Candidate
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||
|
|
$
|
|
%
|
|
$
|
|
%
|
|
$
|
|
%
|
||||||
Zoptrex™
|
|
2,495
|
|
|
63.4
|
|
|
6,742
|
|
|
57.0
|
|
|
8,635
|
|
|
72.6
|
|
Macrilen™
|
|
1,237
|
|
|
31.4
|
|
|
4,326
|
|
|
36.6
|
|
|
1,555
|
|
|
13.1
|
|
LHRH - Disorazol Z
|
|
44
|
|
|
1.1
|
|
|
294
|
|
|
2.5
|
|
|
212
|
|
|
1.8
|
|
Erk Inhibitors
|
|
18
|
|
|
0.5
|
|
|
130
|
|
|
1.1
|
|
|
1,081
|
|
|
9.1
|
|
Other
|
|
142
|
|
|
3.6
|
|
|
337
|
|
|
2.8
|
|
|
408
|
|
|
3.4
|
|
|
|
3,936
|
|
|
100.0
|
|
|
11,829
|
|
|
100.0
|
|
|
11,891
|
|
|
100.0
|
|
(in thousands, except for per share data)
|
|
Three months ended
|
||||||||||
|
|
December 31, 2017
|
|
September 30, 2017
|
|
June 30, 2017
|
|
March 31, 2017
|
||||
|
|
$
|
|
$
|
|
$
|
|
$
|
||||
Revenues
|
|
178
|
|
|
241
|
|
|
243
|
|
|
261
|
|
Loss from operations
|
|
(3,578
|
)
|
|
(7,200
|
)
|
|
(6,679
|
)
|
|
(5,617
|
)
|
Net loss
|
|
(484
|
)
|
|
(9,631
|
)
|
|
(2,550
|
)
|
|
(4,131
|
)
|
Net loss per share (basic and diluted)*
|
|
(0.03
|
)
|
|
(0.61
|
)
|
|
(0.18
|
)
|
|
(0.31
|
)
|
(in thousands, except for per share data)
|
|
Three months ended
|
||||||||||
|
|
December 31, 2016
|
|
September 30, 2016
|
|
June 30, 2016
|
|
March 31, 2016
|
||||
|
|
$
|
|
$
|
|
$
|
|
$
|
||||
Revenues
|
|
304
|
|
|
269
|
|
|
96
|
|
|
242
|
|
Loss from operations
|
|
(7,598
|
)
|
|
(7,703
|
)
|
|
(7,184
|
)
|
|
(6,991
|
)
|
Net loss
|
|
(8,220
|
)
|
|
(6,055
|
)
|
|
(7,008
|
)
|
|
(3,676
|
)
|
Net loss per share (basic and diluted)*
|
|
(0.71
|
)
|
|
(0.61
|
)
|
|
(0.71
|
)
|
|
(0.37
|
)
|
*
|
Net loss per share is based on the weighted average number of shares outstanding during each reporting period, which may differ on a quarter-to-quarter basis. As such, the sum of the quarterly net loss per share amounts may not equal full-year net loss per share.
|
|
|
December 31,
|
||||
(in thousands)
|
|
2017
|
|
2016
|
||
|
|
$
|
|
$
|
||
Cash and cash equivalents
1
|
|
7,780
|
|
|
21,999
|
|
Trade and other receivables and other current assets
|
|
958
|
|
|
744
|
|
Restricted cash equivalents
|
|
381
|
|
|
496
|
|
Inventory
|
|
643
|
|
|
—
|
|
Property, plant and equipment
|
|
101
|
|
|
204
|
|
Deferred tax assets
|
|
3,479
|
|
|
—
|
|
Other non-current assets
|
|
8,853
|
|
|
8,216
|
|
Total assets
|
|
22,195
|
|
|
31,659
|
|
Payables and other current liabilities
|
|
2,987
|
|
|
3,745
|
|
Provision for restructuring costs
|
|
2,296
|
|
|
33
|
|
Current portion of deferred revenues
|
|
486
|
|
|
426
|
|
Warrant liability
|
|
3,897
|
|
|
6,854
|
|
Non-financial non-current liabilities
2
|
|
15,312
|
|
|
14,389
|
|
Total liabilities
|
|
24,978
|
|
|
25,447
|
|
Shareholders' (deficiency) equity
|
|
(2,783
|
)
|
|
6,212
|
|
Total liabilities and shareholders' (deficiency) equity
|
|
22,195
|
|
|
31,659
|
|
1.
|
Approximately $0.6 million and $1.5 million were denominated in EUR as at
December 31, 2017
and
December 31, 2016
, respectively, and approximately $1.0 million and $3.7 million were denominated in Canadian dollars as at
December 31, 2017
and
December 31, 2016
, respectively.
|
2.
|
Comprised mainly of employee future benefits, provisions for onerous contracts and non-current portion of deferred revenues.
|
(in thousands)
|
|
Minimum lease payments
|
|
Minimum sublease receipts
|
|
Service and manufacturing
|
|||
|
|
$
|
|
$
|
|
$
|
|||
Less than 1 year
|
|
448
|
|
|
(143
|
)
|
|
403
|
|
1 - 3 years
|
|
633
|
|
|
(26
|
)
|
|
283
|
|
4 - 5 years
|
|
105
|
|
|
—
|
|
|
259
|
|
More than 5 years
|
|
100
|
|
|
—
|
|
|
250
|
|
Total
|
|
1,286
|
|
|
(169
|
)
|
|
1,195
|
|
(in thousands)
|
|
$
|
|
Less than 1 year
|
|
522
|
|
1 – 3 years
|
|
1,094
|
|
4 – 5 years
|
|
1,122
|
|
More than 5 years
|
|
16,589
|
|
Total
|
|
19,327
|
|
•
|
$4,000,000 on achieving $25,000,000 annual net sales,
|
•
|
$10,000,000 on achieving $50,000,000 annual net sales,
|
•
|
$20,000,000 on achieving $100,000,000 annual net sales,
|
•
|
$40,000,000 on achieving $200,000,000 annual net sales, and
|
•
|
$100,000,000 on achieving $500,000,000 annual net sales.
|
(in thousands)
|
|
Three months ended December 31,
|
|
Years ended December 31,
|
|||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2015
|
|||||
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|||||
Cash and cash equivalents - Beginning of period
|
|
12,173
|
|
|
21,052
|
|
|
21,999
|
|
|
41,450
|
|
|
34,931
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash used in operating activities from continuing operations
|
|
(4,527
|
)
|
|
(8,131
|
)
|
|
(22,913
|
)
|
|
(29,010
|
)
|
|
(33,929
|
)
|
Cash provided by operating activities from discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
85
|
|
|
|
(4,527
|
)
|
|
(8,131
|
)
|
|
(22,913
|
)
|
|
(29,010
|
)
|
|
(33,844
|
)
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|||||
Net proceeds from issuance of common shares and warrants
|
|
—
|
|
|
9,361
|
|
|
8,030
|
|
|
9,924
|
|
|
49,427
|
|
Payment pursuant to warrant amendment agreements and Series B Warrant exercise inducement fee
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,629
|
)
|
|
|
—
|
|
|
9,361
|
|
|
8,030
|
|
|
9,924
|
|
|
40,798
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|||||
Net cash (used in) provided by investing activities from continuing operations
|
|
140
|
|
|
(9
|
)
|
|
307
|
|
|
(314
|
)
|
|
913
|
|
|
|
140
|
|
|
(9
|
)
|
|
307
|
|
|
(314
|
)
|
|
913
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
(6
|
)
|
|
(274
|
)
|
|
357
|
|
|
(51
|
)
|
|
(1,348
|
)
|
Cash and cash equivalents - End of period
|
|
7,780
|
|
|
21,999
|
|
|
7,780
|
|
|
21,999
|
|
|
41,450
|
|
•
|
$4,000,000 on achieving $25,000,000 annual net sales,
|
•
|
$10,000,000 on achieving $50,000,000 annual net sales,
|
•
|
$20,000,000 on achieving $100,000,000 annual net sales,
|
•
|
$40,000,000 on achieving $200,000,000 annual net sales, and
|
•
|
$100,000,000 on achieving $500,000,000 annual net sales.
|