ADC Therapeutics Reports Fourth Quarter And Year-End 2020 Financial Results And Provides Business Updates

ADC Therapeutics SA

Reconciliation of IFRS Measures to Non-IFRS Measures (Unaudited)

(in KUSD except for share and per share data)

                 
   

Three months ended December 31,

 

Twelve months ended December 31,

in KUSD (except for share and per share data)  

2020

 

2019

 

2020

 

2019

Net loss  

(55,929

)

 

(35,285

)

 

(246,290

)

 

(116,484

)

Adjustments:                
Share-based compensation expense (i)  

15,416

 

 

761

 

 

42,928

 

 

1,117

 

Convertible loans, derivatives, change in fair value (income) expense (ii)  

18

 

 

-

 

 

45,411

 

 

-

 

Convertible loans, first tranche, derivative, transaction costs (iii)  

-

 

 

-

 

 

1,571

 

 

-

 

Effective interest expense (iv)  

1,975

 

 

-

 

 

4,756

 

 

-

 

Gain on intellectual property contributed to joint venture (v)  

(24,501

)

 

-

 

 

(24,501

)

 

-

 

Adjusted net loss  

(63,021

)

 

(34,524

)

 

(176,125

)

 

(115,367

)

                 
Net loss per share, basic and diluted  

(0.73

)

 

(0.69

)

 

(3.77

)

 

(2.36

)

Adjustment to net loss per share, basic and diluted  

(0.09

)

 

0.01

 

 

1.08

 

 

0.02

 

Adjusted net loss per share, basic and diluted  

(0.82

)

 

(0.68

)

 

(2.69

)

 

(2.34

)

Weighted average shares outstanding, basic and diluted  

76,719,090

 

 

50,940,406

 

 

65,410,292

 

 

49,279,961

 

                 

(i)

 

Share-based compensation expense represents the cost of equity awards issued to our directors, management and employees. The fair value of awards is computed at the time the award is granted and is recognized over the vesting period of the award by a charge to the income statement and a corresponding increase in other reserves within equity. These accounting entries have no cash impact.

 

 

 

(ii)

 

Change in the fair value of the convertible loan derivatives results from the valuation at the end of each accounting period of the derivatives associated with the convertible loans, as explained in our annual report filed on Form 20-F. There are several inputs to these valuations, but those most likely to provoke significant changes in the valuations are changes in the value of the underlying instrument (i.e., changes in the price of our common shares) and changes in expected volatility in that price. Any change in the estimated probability of the regulatory approval of Lonca would directly affect the valuation related to the second tranche. These accounting entries have no cash impact.

 

 

 

(iii)

 

The transaction costs allocated to the convertible loan first tranche derivative represent actual costs. These are not expected to recur on an ongoing basis.

 

 

 

(iv)

 

Effective interest expense relates to the increase in the value of our convertible loan in accordance with the effective interest method. As the initial value of the loan is recorded net of the value of the embedded derivative, the increase in the loan value necessary to attain the amount necessary to fund the cash outflows of interest payments, repayment of capital and exit fee is considerably higher than the payments of interest at coupon rate and of the exit fee.

 

 

 

(v)

 

Gain related to the Company’s contribution of intellectual property for its equity interest in the Overland ADCT BioPharma joint venture. This accounting entry had no cash impact.

 

Contacts

Investors
Eugenia Litz
ADC Therapeutics
Eugenia.Litz@adctherapeutics.com
+44 7879 627205

Amanda Hamilton
ADC Therapeutics
amanda.hamilton@adctherapeutics.com
Tel.: +1 917-288-7023

EU Media
Alexandre Müller
Dynamics Group
amu@dynamicsgroup.ch
Tel: +41 (0) 43 268 3231

USA Media
Annie Starr
6 Degrees
astarr@6degreespr.com
Tel.: +1 973-768-2170

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