Vivoryon Therapeutics N : Board Report and Financial Statements for the Financial Year ended December 31, 2020 (english)

Vivoryon Therapeutics N.V.

Amsterdam, The Netherlands

Annual Report 2020

Precision Intervention Medicines - Pioneering Innovation

FORWARD-LOOKING STATEMENTS ...............................................................................................	5
CEO INTERVIEW .............................................................................................................................	6
BOARD REPORT AND FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED DECEMBER 31,
2020...............................................................................................................................................	9
1	INTRODUCTION .................................................................................................................	9
	1.1	General Information ..................................................................................................	9
	1.2	General overview of the Company ............................................................................	9
	1.3	History and Development of the Company .............................................................	11
	1.4	Business Overview ...................................................................................................	12
	1.5	Pipeline ....................................................................................................................	14
	1.6	Corporate Events .....................................................................................................	18
	1.7	Annual General Shareholder Meeting 2020 ............................................................	19
	1.8	Post-Balance Sheet Date Events ..............................................................................	19
	1.9	Organizational Structure..........................................................................................	20
	1.10	Property, Plant and Equipment ...............................................................................	20
	1.11	Stakeholder Dialogue...............................................................................................	20
	1.12	Company Outlook ....................................................................................................	20
2	Risk factors ......................................................................................................................	21
	2.1	Summary of key risk factors ....................................................................................	21
	2.2	Risk relating to Vivoryon´s business ........................................................................	21
	2.3	Risks related to the Shares ......................................................................................	37
	2.4	Risks Resulting from Infectious Disease Outbreaks .................................................	38
	2.5	Risk Control Measures .............................................................................................	39
3 Operating and financial review........................................................................................	40
	3.1	Operating results .....................................................................................................	40
	3.2	Financial operations overview.................................................................................	42
	3.3	Liquidity and capital resources ................................................................................	45
4	Legal proceedings ............................................................................................................	46
5 Disclosure controls and procedures ................................................................................	46
6	Corporate Governance ....................................................................................................	47
	6.1	Introduction.............................................................................................................	47
	6.2	Board .......................................................................................................................	47
	6.3	Shareholders and the General Meeting...................................................................	51
	6.4	Dutch Corporate Governance Code.........................................................................	54
	6.5	Code of conduct and other corporate governance practices ..................................	55
	6.6	Committees .............................................................................................................	56

Annual Report 2020, Vivoryon Therapeutics N.V.
	6.7	Evaluation ................................................................................................................	57
	6.8	Diversity ...................................................................................................................	57
	6.9	Anti-takeover measures ..........................................................................................	57
	6.10	Risk management and control systems ...................................................................	57
7	Remuneration..................................................................................................................	59
	7.1	Remuneration Policy................................................................................................	59
	7.2	Remuneration for Executive Directors .................................................................	59
	7.3	Performance Assessment ......................................................................................	62
	7.4	Remuneration for Non-Executive Directors ............................................................	62
	7.5	Change in Remuneration, Company's Performance and Pay Ratios .......................	63
8	NON-EXECUTIVE REPORT.................................................................................................	65
	8.1	Introduction.............................................................................................................	65
	8.2	Evaluation ................................................................................................................	65
Vivoryon Therapeutics N.V. Financial Statements.......................................................................	66
Statement of Profit or Loss and Other Comprehensive Income for the Years Ended December
31, 2020 and 2019 .......................................................................................................................	66
Statements of Financial Position as December 31, 2020 and 2019.............................................	67
Statements of Changes in Shareholders' Equity for the Years Ended December 31, 2020, and
2019.............................................................................................................................................	68
Statements of Cash Flows for the Years ended December 31, 2020 and 2019...........................	69
Notes to the Financial Statements ..............................................................................................	70
1	Company information......................................................................................................	70
2	Financial reporting period ...............................................................................................	70
3	Going Concern .................................................................................................................	70
4	Risk management system ................................................................................................	71
	4.1	Risk groups...............................................................................................................	71
	4.2	Capital management................................................................................................	73
5	Basis of preparation.........................................................................................................	73
	5.1	Statement of compliance and basis of measurement .............................................	73
	5.2	Functional and presentation currency.....................................................................	74
	5.3	Presentation of statement of profit and loss and other comprehensive income....	74
	5.4	Use of judgements and estimates ...........................................................................	74
6	Summary of significant accounting policies.....................................................................	75
	6.1	Changes in accounting policies ................................................................................	75
	6.2	Foreign currency transactions .................................................................................	76
	6.3	Determination of fair values....................................................................................	76
	6.4	Financial assets and liabilities (financial instruments).............................................	76
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Annual Report 2020, Vivoryon Therapeutics N.V.
6.5	Share Capital............................................................................................................	78
6.6	Property, plant and equipment ...............................................................................	79
6.7	Intangible assets ......................................................................................................	79
6.8	Impairment of non-financial assets .........................................................................	79
6.9	Share-based payment transactions .........................................................................	79
6.10	Pensions...................................................................................................................	80
6.11	Provisions.................................................................................................................	80
6.12	Research and development .....................................................................................	80
6.13	Finance income and expenses .................................................................................	80
6.14	Income tax ...............................................................................................................	81
6.15	Leases ......................................................................................................................	81
6.16	Loss per share ..........................................................................................................	83
6.17	New standards and interpretations.........................................................................	83
6.18	Operating segments ................................................................................................	83
7 Material items from Statement of Profit or Loss and Other Comprehensive Income.....	84
7.1	Research and development expenses .....................................................................	84
7.2	General and administrative expenses .....................................................................	84
7.3	Employee benefit expenses.....................................................................................	85
7.4	Auditor´s fee ............................................................................................................	85
7.5	Net finance costs .....................................................................................................	86
7.6	Income taxes............................................................................................................	86
8 Material items from Statements of Financial Position ....................................................	87
8.1	Intangible assets ......................................................................................................	87
8.2	Property, plant equipment ......................................................................................	87
8.3	Leases ......................................................................................................................	88
8.4	Other current assets and prepayments ...................................................................	89
8.5	Cash and cash equivalents.......................................................................................	89
8.6	Equity.......................................................................................................................	89
8.7	Share based payments.............................................................................................	91
8.8	Pension liabilites ......................................................................................................	93
8.9	Pension liabilities - pension commitment using the provident fund ......................	94
8.10	Other current liabilities............................................................................................	94
9 Other disclosures.............................................................................................................	94
9.1	Disclosures on financial instruments .......................................................................	94
9.2	Contingencies and other financial commitments....................................................	95
9.3	Related party relationships......................................................................................	95
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Annual Report 2020, Vivoryon Therapeutics N.V.
9.4	Covid-19 pandemic ..................................................................................................	96
9.5	Subsequent events ..................................................................................................	96
Other information .......................................................................................................................	99
GLOSSARY	......................................................................................................................................	1

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