Company: IPHYF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001598599-25-000042
Chunk: 331

Company: Innate Pharma SA
Filing Date: 2025-04-30
Form: 20-F
Item: Item 19
Chunk 331
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 commercialization steps or co-sharing profit from sales are recognized when the corresponding sales of products are carried out by the partner.

When a collaboration contract grants a partner an option to acquire a licensed intellectual property (“ IP”), the Company determines the date of the transfer of control over the licensed IP. Depending on the Company analysis, revenue related to the option fee will be recognized (i) when control over the licensed IP transfers (payment related to the exercise of the option being therefore considered as a variable consideration), or, (ii) deferred until the exercise of the option or its expiration period.

When an agreement only promises development services, the Company will recognize the related revenue when the costs are incurred.

Up-front and milestones payments and fees are recorded as deferred revenue upon receipt or when due, and may require deferral of revenue recognition to a future period until the Company performs its obligations under these arrangements. Amounts due by the Company in relation to cost-sharing are recorded as collaboration liability. Amounts payable to the Company are recorded as accounts receivable when the Company’s right to consideration is unconditional.

See Note 13 for accounting description of significant agreements.

F-30

q)Government financing for research expenditures

Research tax credit

The research tax credit (Crédit d’ Impôt Recherche) (the “ Research Tax Credit” or “ CIR”) is granted by the French tax authorities in order to encourage Companies to conduct technical and scientific research. Companies that can justify that these expenses meet the required criteria receive a tax credit that can be used to offset with the income tax due for the same fiscal year. Any excess is a receivable to the French state, which can be used to pay the income tax that would be due for the 3 following fiscal years. At the end of this period, the receivable is refundable by the French State. Companies that meet the definition of SME according to European Union criteria are eligible for early reimbursement of their CIR. The reimbursements are made under the European Community tax rules for small and medium sized enterprises (“ SME”) in compliance with the applicable regulations in effect.

With the Company no longer qualifying as a SME, the Company decided to sell the receivable relating to the 2023 CIR to a bank. As there is no specific guidance under IFRS for the transfer of this type of assets, an analysis under IFRS 9 was made by analogy. Because the company transferred to the bank its contractual right to receive the cash flows from the asset as well as substantially all the risks and rewards of