Company: IPHYF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001598599-25-000042
Chunk: 37

Company: Innate Pharma SA
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 37
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 collaborators keep Innate informed and allow Innate to disclose information to the public or provide such information to the public themselves. If its collaborators do not inform Innate about its product candidates subject to agreements with them, the Company may make operational and investment decisions that the Company would not have made had the Company been fully informed, which may have an adverse impact on its business, prospects, financial condition and results of operations.

Risks Related to Innate Pharma's Financial Position and Capital Needs

The Company has incurred and may in the future incur significant operational losses related to its research and development activities.

The Company has incurred net losses in each year since its inception except for the years ended December 31, 2016 and 2018. Innate's net income (loss) was €(49.5) million and €(7.6) million for the years ended December 31, 2024 and 2023, respectively. Substantially all of its net losses resulted from costs incurred in connection with its development programs and from selling, general and administrative expenses associated with its ongoing operations. The Company expects to incur significant expenses and operating losses for the foreseeable future.

The net loss for the year ended December 31, 2024 leads to negative equity of €(26.4) million for a share capital of €4.2 million, meaning that the Company's equity is less than half of its share capital. In accordance with the provisions of Article L. 225-248 of the French Commercial Code, a resolution will be submitted to the annual general meeting of the shareholders of the Company (the “ General Meeting”) on May 22, 2025, to decide whether the Company should be dissolved early pursuant to French corporate law and subject to additional delay periods.

The likelihood and amount of its future operational losses will depend on several factors, including the pace and amount of its future expenditures in connection with its product candidates and development programs and its ability to obtain funding through milestone or royalty payments under its license and collaboration agreements, equity or debt financings, strategic collaborations and government grants and tax credits. The Company expects that its main source of income for the near- and medium-term will be:

• payments received under its license and collaboration agreements with third parties, including AstraZeneca and Sanofi; and

• government grants and research tax credits.

The interruption of one or more of those sources of income could have a material adverse effect on Innate's business, prospects, financial condition and results of operations.

The Company's ability