Company: IPHYF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001598599-25-000042
Chunk: 307

Company: Innate Pharma SA
Filing Date: 2025-04-30
Form: 20-F
Item: Item 19
Chunk 307
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 December 31, 2024, and

- collaboration liabilities of 48,6 million euros as of December 31, 2024;

(ii) Collaboration and license agreement with Sanofi signed in 2016 for the development of "NK Cell engagers" in oncology. For the year ended December 31, 2024, the execution of this contract resulted in recognized revenue of 4 million euros;

(iii) Co-development and license agreement for IPH5201 signed with AstraZeneca in 2018 and subsequent amendment signed in 2022. For the year ended December 31, 2024, the execution of this contract resulted in recognized revenue of 2,1 million euros;

(iv) Research collaboration and license agreement with Sanofi signed in 2022 for the ANKET® program for the development of "NK Cell engagers first-in-class". The execution of these agreements resulted in:

- recognized revenue of 2,1 million euros for the year ended December 31, 2024, and

- deferred revenues of 3,2 million euros as of December 31, 2024;

In assessing the revenue recognition accounting treatment of such complex agreements, Management considers the contractual terms that could impact performance obligations, transaction price allocation, and the timing of revenue recognition. This assessment involves significant judgements from Management.

The principal considerations for our determination that performing procedures relating to Research collaboration and license agreements with AstraZeneca and Sanofi is a critical audit matter are (i) the significant judgment by management in identifying the performance obligations, determining and allocating the transaction price, and assessing the timing of the revenue recognition, including significant judgments and assumptions on a contract by contract basis and (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating audit evidence related to management’s assessment of the revenue recognition accounting treatment.

How the Critical Audit Matter was Addressed in the Audit

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s assessment of the revenue recognition. These procedures also included, among others,

(i) analyzing the accounting position papers prepared by management in accordance with applicable accounting principles,

(ii) reviewing the agreements and amendments signed between Innate Pharma and its partners to assess the potential impacts on performance obligations, transaction price determination and allocation, and the timing of revenue recognition,

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(iii) confirming with AstraZeneca the