Company: GLPG
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001558370-25-003806
Chunk: 191

Company: GALAPAGOS NV
Filing Date: 2025-03-27
Form: 20-F
Item: Item 5
Chunk 191
---
 change in fair value between the year-end 2021 and year-end 2022, and between year-end 2022 and year-end 2023 in profit or loss. The recognized fair value gain of €0.2 million in 2022 and of €0.02 million in 2023 were mainly the result of the change in the implied volatility of our share price and the evolution of our share price itself for these two periods. On December 31, 2023, the fair value of the financial liability related to the initial Warrant B amounted to nil. Initial Warrant B expired in 2024 and was never exercised. Subsequent Warrant B was approved by the Extraordinary General Meeting of Shareholders of April 30, 2024. This warrant has substantially similar terms, including as to exercise price, to the initial Warrant B. On December 31, 2024 the value of the subsequent Warrant B amounted to €0.01 million.
The financial liability will be re-measured at fair value at each reporting period.
Fair value losses on financial assets held at fair value through profit or loss consisted in 2023 of an unrealized exchange loss on a participation in a non-listed company. 
Other financial expense and financial income
Interest expense consists primarily of interest expense incurred on leases, on defined benefit obligations and prior to 2023 interest expenses on certain of our term deposits, treasury bills and leases.
Interest income consists primarily of interest earned by investing our cash reserves in interest-bearing deposit accounts, notice accounts and in financial investments. Interest income increased due to increasing interest rates.
Other financial expenses also include the discounting component of other non-current liabilities, being the deferred consideration and milestones payable related to the acquisition of subsidiaries.
Taxation
With the exception of the year ended December 31, 2019, 2023 and 2024 we have a history of losses. We forecast to continue incurring losses as we continue to invest in clinical and preclinical development programs and discovery platforms. 
Consequently, we do not have any net deferred tax asset on the balance sheet as at December 31, 2024, except for subsidiaries working on a cost plus basis for which deferred tax assets were set up for an amount of €1.5 million as of December 31, 2024. As a result of the business combination related to the acquisitions of CellPoint and AboundBio in 2022, we also recognized on acquisition date a net deferred tax liability of €23