AnGes : Consolidated Financial Report for the First Quarter 2024

Released on May 10 , 2024

Consolidated Financial Report

for the First Quarter 2024 (Unaudited)(Japan GAAP) AnGes, Inc.

https://www.anges.co.jp/en/

Listings: Growth of the Tokyo Stock Exchange, Code 4563

Head Office: 7-7-15,Saito-Asagi, Ibaraki, Osaka, 567-0085, Japan

				(Figures are rounded down to the nearest million yen)
1. Business Results for the First Quarter 2024 (From Jan. 1, 2024 to Mar. 31, 2024)
(1) Results of Operations		(Percentages indicate changes from the same period of the previous fiscal year)
1Q 2024	113	584.0	(2,476)	―	(1,527)	―	(1,824)	―
1Q 2023	16	7.9	(3,036)	―	(2,897)	―	(2,911)	―

*Comprehensive Income		1Q 2024 :		(1,270)	million yen		1Q 2023 :	(2,824)	million yen
	Net loss per share	Diluted net loss
		per share
			Yen			Yen
1Q 2024			(9.14)			―
1Q 2023			(15.91)			―
(2) Financial Position
	Total assets		Total net assets		Shareholders'
				equity ratio
		Million yen		Million yen			%
Mar. 31, 2024			28,029			25,052			89.1
Dec. 31, 2023			28,892			26,103			90.0
*Shareholder's equity		Mar. 31, 2024 :		24,965	million yen	Dec. 31, 2023 :	26,007	million yen
			.
2. Dividend
			Dividend per share
	1Q		2Q		3Q	4Q	Full-year
FY 2023		―	0.00		―	0.00		0.00
FY 2024 (Forecast)		―
3. Earnings Forecast for the Fiscal Year 2024 (From Jan. 1, 2024 to Dec. 31, 2024)
Revenues		Operating loss	Ordinary loss		Net loss	Net loss per share
Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Full-year	600 292.2	(8,450)	―	(8,450)	―	(8,650)	―	(43.06)
*Change of earnings forecast from the most recent release:	None

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Notes:

1. Change of reporting entities (change of condition of significant consolidated subsidiaries)
2. Accounting procedure peculiar to the quarterly consolidated financial statements
3. Change of significant accounting and reporting policies for consolidated financial statements

1)	Changes caused by revision of accounting standard	:	None
2)	Changes in accounting policies other than 1)	:	None
3)	Changes in accounting estimates		:	None
4)	Restatement		:	None
(4) Number of shares issued and outstanding (common stock)
1)	Number of shares issued and	Mar. 31, 2024	201,306,000 shares	Dec. 31, 2023
	outstanding (including treasury shares)
2)	Number of treasury shares	Mar. 31, 2024		92 shares	Dec. 31, 2023
3)	Average number of shares issued and	1Q 2024	199,559,728 shares	1Q 2023
	outstanding

• None
• None

198,470,300 shares

92 shares

182,956,586 shares

*Performance forecasts or any other future events contained in this report are based on currently available information which are believed to be reasonable at the time of forecasts. Actual results may differ from the forecasts due to various factors.

**This financial report has been translated from Japanese original which has been prepared in accordance with generally accepted accounting principles in Japan, for reference purposes only. Also some changes are added to this report in order to present in a form more familiar to the readers outside Japan.

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AnGes, Inc

Consolidated Balance Sheets (In thousands of yen) (Unaudited)

	December 31,	March 31,
	2023	2024
Current assets
Cash and deposits	4,160,424	2,115,624
Accounts receivable - trade	26,534	97,701
Merchandise	-	299,723
Finished goods	97,655	94,980
Raw materials and supplies	1,468,481	1,543,928
Advance payments to suppliers	49,674	81,189
Prepaid expenses	85,906	67,225
Consumption taxes refund receivable	-	82,044
Other	32,599	10,772
Total current assets	5,921,276	4,393,191
Non-current assets
Property, plant and equipment
Buildings	220,842	220,865
Accumulated depreciation and impairment	(135,121)	(136,934)
Buildings, net
Tools, furniture and fixtures
Accumulated depreciation and impairment	(80,224)	(87,887)
Tools, furniture and fixtures, net
Right of use assets
Total property, plant and equipment
Intangible assets
Goodwill	21,746,086	22,385,934
Total intangible assets
Investments and other assets
Investment securities	355,545	388,945
Leasehold and guarantee deposits	102,056	101,090
Deferred tax assets	342,944	341,586
Other	1,509	1,369
Total investments and other assets	802,055	832,991
Total non-current assets	22,971,260	23,636,288
Total assets	28,892,536	28,029,480

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AnGes, Inc

Consolidated Balance Sheets (In thousands of yen) (Unaudited)

	December 31,	March 31,
	2023	2024
Liabilities
Current liabilities
Accounts payable - trade	426,447	697,791
Accounts payable - other	474,522	450,185
Accrued expenses	36,947	37,893
Provision for business restructuring	558,129	568,398
Accrued consumption taxes	93,258	-
Income taxes payable	103,147	124,718
Advances received	637,550	638,200
Deposits received	15,434	17,599
Lease liabilities	147,726	155,391
Total current liabilities	2,493,163	2,690,176
Non-current liabilities
Deferred tax liabilities	16,827	25,202
Asset retirement obligations	64,430	64,459
Lease liabilities	214,949	196,846
Total non-current liabilities	296,207	286,507
Total liabilities	2,789,370	2,976,684
Net assets
Shareholders' equity
Share capital	35,053,890	35,167,774
Capital surplus	3,423,721	3,537,605
Retained earnings	(18,385,610)	(20,209,661)
Treasury shares	(31)	(31)
Total shareholders' equity	20,091,969	18,495,686
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	24,757	43,601
Foreign currency translation adjustment	5,891,202	6,425,806
Total accumulated other comprehensive income	5,915,960	6,469,407
Share acquisition rights	95,236	87,701
Total net assets	26,103,166	25,052,795
Total liabilities and net assets	28,892,536	28,029,480

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AnGes, Inc

Consolidated Statements of Operations (In thousands of yen)

(Unaudited)

	(From Jan. 1 to Mar.31)
	2023	2024
Business revenues
Net sales of finished goods	31	3,901
Commission income	16,571	35,350
Research and development revenues	-	74,310
Total business revenues	16,602	113,561
Business expenses
Cost of sales	25,153	41,959
Research and development expenses	1,579,242	971,544
Selling, general and administrative expenses	1,448,440	1,576,749
Total business expenses	3,052,835	2,590,254
Operating loss	(3,036,232)	(2,476,692)
Non-operating income
Interest income	1,078	1,794
Foreign exchange gains	103,604	924,523
Subsidy income	32,066	27,916
Commission income	1,153	1,005
Gain on investments in investment partnerships	6,511	-
Miscellaneous income	0	-
Total non-operating income	144,415	955,239
Non-operating expenses
Share issuance costs	5,505	4,922
Loss on investments in investment partnerships	-	746
Total non-operating expenses	5,505	5,668
Ordinary loss	(2,897,322)	(1,527,122)
Extraordinary income
Gain on reversal of share acquisition rights	-	3,096
Total extraordinary income	-	3,096
Extraordinary losses
Loss on valuation of investment securities	1,117	-
Business structural reform expenses	-	247,085
Total extraordinary losses	1,117	247,085
Loss before income taxes	(2,898,440)	(1,771,111)
Income taxes - current	14,374	32,956
Income taxes - deferred	(1,203)	19,983
Total income taxes	13,170	52,940
Loss	(2,911,611)	(1,824,051)
Loss attributable to owners of parent	(2,911,611)	(1,824,051)

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AnGes, Inc

Consolidated Statements of Comprehensive Income (In thousands of yen)

(Unaudited)

	(From Jan. 1 to Mar.31)
	2023	2024
Other comprehensive income
Valuation difference on available-for-sale securities	3,812	18,843
Foreign currency translation adjustment	83,263	534,603
Total other comprehensive income	87,075	553,446
Comprehensive income	(2,824,535)	(1,270,604)
Comprehensive income attributable to:
owners of parent	(2,824,535)	(1,270,604)
non-controlling interests	－	－

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Main pipeline products

Conditional and time-limited approval system

Project	Area	Partner	Dosage	Indication
Form
		Mitsubishi Tanabe
HGF gene	Japan	Pharma Corporation	Injection	Chronic arterial occlusive
therapy product	(JP)	disease with lower limb ulcer
		Marketing Rights

Development stage

Application for approval

Approval process

Project Area

	USA
HGF gene	Israel
therapy product
	Turkey
NF-κB
Decoy	Japan
Oligonucleotide
DNA Vaccine	Australia
DNA Vaccine	USA
Tie2 agonists	USA
Zokinvy	Japan
(Lonafarnib)

Partner

Mitsubishi Tanabe

Pharma Corporation

(JP)

Marketing Rights

Kamada

Er-Kim

-

-

-

Vasomune

(Canada)

Eiger

(USA)

Dosage

Form

Injection

Injection

Injection

Injection

Injection

Intranasal

formulation

Injection

Capsule

Indication

Arteriosclerosis obliterans

with lower limb ulcer

Chronic arterial occlusive

disease with lower limb ulcer

Chronic arterial occlusive

disease with lower limb ulcer

Chronic disconegic lumber back pain

Hypertension

Novel coronavirus

(COVID-19)

Novel coronavirus

(COVID-19)

/ARDS

Premature aging diseases

(Hutchinson-Gilford progeria syndrome /Progeroid laminopathies)

Development stage

Phase Ⅱb

New drug application

Preparing for application

Phase Ⅱ

Phase Ⅰ /Ⅱa

Completed

Pre-clinical

Phase Ⅱa

Approved

EmendoBio's pipeline

Project	Area	Indication	Development stage
		Severe Congenital Neutropenia	IND-enabling
Development of	USA
genome editing
		Diseases in hematology, ophthalmology, immuno-oncology, etc.	Pre-clinical

* https://www.emendobio.com/our-science/pipeline/

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