AnGes : Consolidated Financial Report for the Third Quater 2023

Released on November 8, 2023

Consolidated Financial Report

for the Third Quater 2023 (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 Third Quater 2023 (From Jan. 1, 2023 to Sep. 30, 2023)
(1) Results of Operations		(Percentages indicate changes from the same period of the previous fiscal year)
Revenues	Operating loss	Ordinary loss			Net loss
Million yen	%	Million yen	%	Million yen	%	Million yen	%
3Q 2023	102	123.6	(9,207)	―	(4,720)	―		(4,798)	―
3Q 2022	45	3.1	(12,455)	―	(10,062)	―		(10,194)	―
*Comprehensive Income	3Q 2023 :	(3,220) million yen	3Q 2022 :	(5,803)	million yen
Net loss per share	Diluted net loss
per share
		Yen	Yen
3Q 2023	(25.69)		―
3Q 2022	(66.60)		―
(2) Financial Position
Total assets	Total net assets	Shareholders'
equity ratio
Sep. 30, 2023	34,852	28,899	82.6
Dec. 31, 2022	38,820	30,425	78.1
*Shareholder's equity	Sep. 30, 2023 :	28,803 million yen	Dec. 31, 2022 :	30,324	million yen
		.
2. Dividend
		Dividend per share
1Q		2Q	3Q	4Q	Full-year
FY 2022	―	0.00	―	0.00	0.00
FY 2023	―	0.00	―
*Change of dividend forecast from the most recent release:	None

3. Earnings Forecast for the Fiscal Year 2023 (From Jan. 1, 2023 to Dec. 31, 2023)

							Net loss per share
Full-year	190 183.3	(13,500) ―	(7,500)	―	(7,500)	―	(39.78)
*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	:	Applicable
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	Sep. 30, 2023	193,885,300	shares	Dec. 31, 2022
	outstanding (including treasury shares)
2)	Number of treasury shares	Sep. 30, 2023		92	shares	Dec. 31, 2022
3)	Average number of shares issued and	3Q 2023	186,740,724	shares	3Q 2022
	outstanding

• None
• None

178,623,900 shares

92 shares

153,073,292 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,	September 30,
	2022	2023
Assets
Current assets
Cash and deposits	11,035,102	5,958,039
Accounts receivable - trade	9,887	30,971
Finished goods	3,453	103,007
Raw materials and supplies	1,004,996	1,428,032
Advance payments to suppliers	303,436	281,409
Prepaid expenses	91,734	87,711
Consumption taxes refund receivable	392,081	-
Other	55,766	42,398
Total current assets	12,896,458	7,931,569
Non-current assets
Property, plant and equipment
Buildings	209,531	220,861
Accumulated depreciation	(128,082)	(133,363)
Buildings, net	81,448	87,497
Tools, furniture and fixtures	71,195	139,745
Accumulated depreciation	(59,941)	(72,860)
Tools, furniture and fixtures, net	11,253	66,884
Right of use asset	1,318,216	1,429,357
Total property, plant and equipment	1,410,919	1,583,739
Intangible assets
Goodwill	23,254,472	23,755,114
Total intangible assets	23,254,472	23,755,114
Investments and other assets
Investment securities	921,573	1,226,076
Leasehold and guarantee deposits	97,969	98,680
Deferred tax assets	158,067	164,290
Other	81,252	92,897
Total investments and other assets	1,258,862	1,581,945
Total non-current assets	25,924,253	26,920,798
Total assets	38,820,711	34,852,368

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AnGes, Inc

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

	December 31,	September 30,
	2022	2023
Liabilities
Current liabilities
Accounts payable - trade	553,252	339,831
Accounts payable - other	590,301	791,082
Accrued expenses	90,094	117,835
Income taxes payable	148,339	14,081
Accrued consumption taxes	-	130,059
Advances received	5,764,004	3,304,550
Deposits received	16,865	18,200
Lease liabilities	160,743	177,607
Total current liabilities	7,323,600	4,893,249
Non-current liabilities
Deferred tax liabilities	12,416	20,656
Asset retirement obligations	64,317	64,402
Lease liabilities	994,969	974,551
Total non-current liabilities	1,071,704	1,059,610
Total liabilities	8,395,304	5,952,859
Net assets
Shareholders' equity
Share capital	35,146,368	34,871,162
Capital surplus	17,467,693	3,240,993
Retained earnings	(27,150,247)	(15,746,229)
Treasury shares	(31)	(31)
Total shareholders' equity	25,463,783	22,365,894
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	19,396	39,410
Foreign currency translation adjustment	4,841,242	6,398,578
Total accumulated other comprehensive income	4,860,639	6,437,989
Share acquisition rights	100,984	95,624
Total net assets	30,425,406	28,899,508
Total liabilities and net assets	38,820,711	34,852,368

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AnGes, Inc

Consolidated Statements of Operations (In thousands of yen)

(Unaudited)

	(From Jan. 1 to Sep.30)
	2022	2023
Business revenues
Net sales of finished goods	7,735	15,516
Commission income	38,170	73,319
Research and development revenues	-	13,824
Total business revenues	45,905	102,659
Business expenses
Cost of sales	73,436	90,454
Research and development expenses	8,527,789	4,839,262
Selling, general and administrative expenses	3,899,947	4,380,898
Total business expenses	12,501,173	9,310,615
Operating loss	(12,455,267)	(9,207,955)
Non-operating income
Interest income	1,548	8,172
Foreign exchange gains	2,015,615	1,562,201
Subsidy income	369,942	2,921,712
Commission income	6,776	5,497
Gain on investments in investment partnerships	-	8,010
Miscellaneous income	6,235	0
Total non-operating income	2,400,118	4,505,593
Non-operating expenses
Share issuance costs	6,988	18,233
Loss on investments in investment partnerships	806	-
Total non-operating expenses	7,794	18,233
Ordinary loss	(10,062,943)	(4,720,595)
Extraordinary losses
Impairment losses	104,800	-
Loss on valuation of investment securities	6,048	1,693
Total extraordinary losses	110,849	1,693
Loss before income taxes	(10,173,792)	(4,722,289)
Income taxes - current	26,152	76,904
Income taxes - deferred	(5,133)	(967)
Total income taxes	21,019	75,937
Loss	(10,194,811)	(4,798,226)
Loss attributable to owners of parent	(10,194,811)	(4,798,226)

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AnGes, Inc

Consolidated Statements of Comprehensive Income (In thousands of yen)

(Unaudited)

	(From Jan. 1 to Sep.30)
	2022	2023
Loss	(10,194,811)	(4,798,226)
Other comprehensive income
Valuation difference on available-for-sale securities	(12,210)	20,013
Foreign currency translation adjustment	4,403,094	1,557,335
Total other comprehensive income	4,390,883	1,577,349
Comprehensive income	(5,803,928)	(3,220,877)
Comprehensive income attributable to
owners of parent	(5,803,928)	(3,220,877)
non-controlling interests	-	-

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Main pipeline products

Conditional and time-limited approval system

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

Approval process

Project	Area	Partner
		Mitsubishi Tanabe
	USA	Pharma Corporation
	(JP)
		Marketing Rights
HGF gene	Israel	Kamada
therapy product
	Turkey	Er-Kim
NF-κB
Decoy	Japan	-
Oligonucleotide
DNA Vaccine	Australia	-
DNA Vaccine	USA	-
Tie2 agonists	USA	Vasomune
(Canada)
Zokinvy	Japan	Eiger
(Lonafarnib)	(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

Application for approval

*In addition to the above projects, the development pipeline includes drugs for chronic hepatitis B in the exploratory, basic research and pre-clinical stages.

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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