Company: IPHYF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001598599-25-000042
Chunk: 285

Company: Innate Pharma SA
Filing Date: 2025-04-30
Form: 20-F
Item: Item 11
Chunk 285
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Item 11. Quantitative and Qualitative Disclosures About Market Risk.

The Company's activities are exposed to liquidity risk, foreign currency exchange risk, interest rate risk and credit risk.

Liquidity risk

The Company does not believe that it is exposed to short-term liquidity risk, considering its cash and cash equivalents and short-term investments of €80.8 million as of December 31, 2024, which consist primarily of cash and money market funds and term deposits, are convertible into cash immediately without penalty.

Foreign currency exchange rate risk

The Company is exposed to foreign exchange risk inherent in certain subcontracting activities related to its operations in the United States, which are invoiced in U. S. dollars. The Company does not currently have material recurring revenues in euro, dollars or in any other currency. As the Company further increases its business, particularly in the United States, the Company expects to face greater exposure to exchange rate risk.

Innate's revenue denominated in U. S. dollars has represented approximately 92%, 29% and 52% of revenue in the years ended December 31, 2022, 2023 and 2024, respectively. Payments in U. S. dollars represented approximately 50%, 43%, and 35% of the payments in the years ended December 31, 2022, 2023 and 2024, respectively. In order to cover this foreign currency exchange rate risk, the Company kept in U. S. dollars a part of the consideration received from AstraZeneca in June 2015, January 2019 and September 2020. The Company kept the entire U. S dollars portion of the proceeds received from its October 2019 global offering in U. S dollars. The Company does not use hedging instruments in its current operations. Refer to Item 3. D. Risk Factors - Innate's business may be exposed to foreign exchange risks.

Interest rate risk

The Company has limited exposure to interest rate risk. Its exposure primarily relates to money market funds and time deposit accounts. Changes in interest rates have a direct impact on the rate of return on these investments and the cash flows generated. The Company does not have any credit facilities bearing variable interest rates. The repayment of the advances from Bpifrance, the borrowings subscribed in 2017 and the two State Guaranteed Loans obtained in 2021 and extended in 2022, are not subject to interest rate risk. The effect of an increase or decrease in interest rates would