Company: IPHYF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001598599-25-000042
Chunk: 167

Company: Innate Pharma SA
Filing Date: 2025-04-30
Form: 20-F
Item: Item 5
Chunk 167
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ursed by the French government three years after the fiscal year for which it is determined. However, since 2011, companies that meet the definition of small and medium sized enterprises (“ SMEs”) according to the European Union criteria are eligible for early reimbursement of their research tax credit receivable. The status of SME is lost when the criteria for eligibility are exceeded during two consecutive years. The Company lost its SME status at the end of the 2019 fiscal year but has been eligible again since the end of the 2021 financial year. Since December 31, 2023, the company lost again the SME status due to two consecutive year with a statutory turnover over €50,000 thousand. For more information, see “ Item 5. B - Liquidity and Capital Resources - Sources and uses of liquidity.”

The Company has concluded that the research tax credit meets the definition of a government grant as defined in IAS 20 Accounting for government grants and disclosure of government assistance (IAS 20), and that the classification as “ Revenue and other income” in its consolidated statement of income (loss) is appropriate.

Innate may also be eligible to receive other government grants, which are recognized in its consolidated statement of income (loss) when Innate complies with the conditions attached to the grants, and the latter are non-repayable grants.

Operating expenses from continuing operations

Since its inception, Innate's operating expenses have consisted primarily of research and development expenses and general and administration expenses.

Following the transfer back of the U. S. marketing authorization to AstraZeneca linked to the Termination and Transition Agreement (from October 1, 2021), selling expenses relating to Lumoxiti activities are presented as discontinued operations since December 31, 2021. The 2020 and 2019 comparatives have been restated compared to previous publications, in accordance with the same standard (see "Discontinued Operations" below).

Research and development expenses

The Company engages in substantial research and development efforts to develop innovative product candidates. Research and development expenses consist primarily of:

• personnel costs, including salaries, related benefits and share-based compensation, for Innate's employees engaged in scientific research and development functions;

• cost of third-party contractors and academic institutions involved in preclinical studies or clinical trials that the Company may conduct, or third-party contractors involved in field trials;

• purchases of biological raw materials, real estate leasing costs as well as conferences and travel costs; and

• certain other expenses, such as expenses for use of laboratories