Document:

EX-4.4

 Exhibit 4.4 
  

 
 IMMUNOPRECISE ANTIBODIES LTD. 

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

FOR THE THREE MONTHS ENDED JULY 31, 2020 AND 2019 

(Unaudited – Expressed in Canadian Dollars) 

 IMMUNOPRECISE ANTIBODIES LTD. 

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 

(Unaudited – Expressed in Canadian Dollars) 

 
  

													
	 	  	 	 	  	July 31,	 	 	April 30,	 
	 	  	 	 	  	2020	 	 	2020	 
	 	  	Note	 	  	$	 	 	$	 
	 ASSETS
	  				  				 			
	 Current assets
	  				  				 			
	 Cash
	  				  	 	6,062,177	 	 	 	2,605,706	 
	 Amounts receivable
	  				  	 	3,599,869	 	 	 	2,491,636	 
	 Taxes receivable
	  				  	 	—  	 	 	 	88,549	 
	 Inventory
	  				  	 	1,017,677	 	 	 	818,643	 
	 Unbilled revenue
	  				  	 	1,868,097	 	 	 	1,168,317	 
	 Prepaid expenses
	  				  	 	447,106	 	 	 	526,591	 
		  				  	  
	  
	 	 	  
	  
	 
		  				  	 	12,994,926	 	 	 	7,699,442	 
	 Restricted cash
	  				  	 	84,457	 	 	 	85,129	 
	 Deposit on equipment
	  				  	 	—  	 	 	 	87,847	 
	 Investment
	  	 	7	 	  	 	127,394	 	 	 	118,896	 
	 Property and equipment
	  	 	8	 	  	 	3,651,390	 	 	 	3,077,762	 
	 Intangible assets
	  	 	5, 6, 9	 	  	 	8,229,778	 	 	 	8,285,392	 
	 Goodwill
	  	 	5, 6	 	  	 	8,332,782	 	 	 	7,908,653	 
		  				  	  
	  
	 	 	  
	  
	 
	 Total assets
	  				  	 	33,420,727	 	 	 	27,263,121	 
		  				  	  
	  
	 	 	  
	  
	 
	 LIABILITIES
	  				  				 			
	 Current liabilities
	  				  				 			
	 Accounts payable and accrued liabilities
	  				  	 	2,316,814	 	 	 	1,766,058	 
	 Taxes payable
	  				  	 	171,429	 	 	 	—  	 
	 Deferred revenue
	  				  	 	2,328,007	 	 	 	1,474,750	 
	 Debentures
	  	 	10	 	  	 	—  	 	 	 	2,000,000	 
	 Loans payable
	  	 	11	 	  	 	107,287	 	 	 	121,833	 
	 Leases
	  	 	13	 	  	 	698,715	 	 	 	752,306	 
	 Deferred acquisition payments
	  	 	5, 6	 	  	 	1,976,379	 	 	 	1,814,820	 
		  				  	  
	  
	 	 	  
	  
	 
		  				  	 	7,598,631	 	 	 	7,929,767	 
	 Debenture subscriptions received
	  	 	12	 	  	 	—  	 	 	 	313,268	 
	 Loans payable
	  	 	11	 	  	 	189,099	 	 	 	190,306	 
	 Convertible debentures – liability component
	  	 	12	 	  	 	2,341,765	 	 	 	—  	 
	 Leases
	  	 	13	 	  	 	1,687,957	 	 	 	1,131,744	 
	 Deferred acquisition payments
	  	 	5, 6	 	  	 	—  	 	 	 	1,010,620	 
	 Deferred income tax liability
	  				  	 	1,687,468	 	 	 	1,601,577	 
		  				  	  
	  
	 	 	  
	  
	 
		  				  	 	13,504,920	 	 	 	12,177,282	 
		  				  	  
	  
	 	 	  
	  
	 
	 SHAREHOLDERS’ EQUITY
	  				  				 			
	 Share capital
	  	 	14	 	  	 	38,401,865	 	 	 	34,086,942	 
	 Convertible debentures – equity component
	  	 	12	 	  	 	204,523	 	 	 	—  	 
	 Contributed surplus
	  	 	14	 	  	 	3,722,646	 	 	 	3,777,771	 
	 Accumulated other comprehensive income (loss)
	  				  	 	614,743	 	 	 	(300,222	) 
	 Deficit
	  				  	 	(23,027,970	) 	 	 	(22,478,652	) 
		  				  	  
	  
	 	 	  
	  
	 
		  				  	 	19,915,807	 	 	 	15,085,839	 
		  				  	  
	  
	 	 	  
	  
	 
	 Total liabilities and shareholders’ equity
	  				  	 	33,420,727	 	 	 	27,263,121	 
		  				  	  
	  
	 	 	  
	  
	 

 Nature of operations (Note 1) 

Subsequent events (Notes 14 and 18) 
 Approved and authorized on
behalf of the Board of Directors on September 28, 2020 
  

									
	
        “James Kuo”       
 
	  	Director	  	
        “Greg Smith”       
 
	  	Director	  	            

 The accompanying notes are an integral part of these condensed interim consolidated financial statements 

  
 2 

 IMMUNOPRECISE ANTIBODIES LTD. 

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF 

COMPREHENSIVE INCOME (LOSS) 

For the three months ended July 31, 2020 and 2019 

(Unaudited – Expressed in Canadian Dollars) 

 
  

													
	 	  	 	 	  	2020	 	 	2019	 
	 	  	Note	 	  	$	 	 	$	 
	 REVENUE
	  				  	 	3,764,977	 	 	 	2,716,099	 
	 COST OF SALES
	  				  	 	1,354,651	 	 	 	1,339,693	 
		  				  	  
	  
	 	 	  
	  
	 
	 GROSS PROFIT
	  				  	 	2,410,326	 	 	 	1,376,406	 
		  				  	  
	  
	 	 	  
	  
	 
	 EXPENSES
	  				  				 			
	 Advertising
	  				  	 	33,306	 	 	 	117,200	 
	 Amortization and depreciation
	  	 	8, 9	 	  	 	677,887	 	 	 	547,841	 
	 Bad debt recovery
	  				  	 	(15,775	) 	 	 	—  	 
	 Consulting fees
	  				  	 	37,421	 	 	 	22,340	 
	 Foreign exchange loss (gain)
	  				  	 	20,256	 	 	 	(112,976	) 
	 Insurance
	  				  	 	35,692	 	 	 	20,531	 
	 Interest and bank charges
	  				  	 	169,806	 	 	 	118,960	 
	 Management fees
	  	 	15	 	  	 	196,539	 	 	 	45,148	 
	 Office and general
	  				  	 	148,160	 	 	 	223,335	 
	 Professional fees
	  				  	 	187,674	 	 	 	149,720	 
	 Rent
	  				  	 	96,656	 	 	 	41,165	 
	 Repairs and maintenance
	  				  	 	8,439	 	 	 	—  	 
	 Research and development
	  				  	 	309,213	 	 	 	167,260	 
	 Salaries and benefits
	  	 	15	 	  	 	1,351,232	 	 	 	1,096,244	 
	 Share-based payments
	  	 	14, 15	 	  	 	97,273	 	 	 	285,995	 
	 Telephone and utilities
	  				  	 	12,973	 	 	 	10,100	 
	 Travel
	  				  	 	17,400	 	 	 	119,305	 
		  				  	  
	  
	 	 	  
	  
	 
		  				  	 	3,384,152	 	 	 	2,852,168	 
		  				  	  
	  
	 	 	  
	  
	 
	 Loss before other income (expense) and income taxes
	  				  	 	(973,826	) 	 	 	(1,475,762	) 
		  				  	  
	  
	 	 	  
	  
	 
	 OTHER INCOME (EXPENSE)
	  				  				 			
	 Accretion
	  	 	5, 6, 10, 12	 	  	 	(101,145	) 	 	 	(552,893	) 
	 Grant income and subsidy
	  				  	 	707,284	 	 	 	—  	 
	 Other expense
	  				  	 	(624	) 	 	 	12,402	 
		  				  	  
	  
	 	 	  
	  
	 
		  				  	 	605,515	 	 	 	(540,491	) 
		  				  	  
	  
	 	 	  
	  
	 
	 Loss before income taxes
	  				  	 	(368,311	) 	 	 	(2,016,253	) 
	 Income taxes (expense) recovery
	  				  	 	(181,007	) 	 	 	4,055	 
		  				  	  
	  
	 	 	  
	  
	 
	 NET LOSS FOR THE PERIOD
	  				  	 	(549,318	) 	 	 	(2,012,198	) 
	 ITEMS THAT MAY BE RECLASSIFIED SUBSEQUENTLY TO LOSS
	  				  				 			
	 Exchange difference on translating foreign operations
	  				  	 	914,965	 	 	 	(602,604	) 
		  				  	  
	  
	 	 	  
	  
	 
	 COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD
	  				  	 	365,647	 	 	 	(2,614,802	) 
		  				  	  
	  
	 	 	  
	  
	 
	 LOSS PER SHARE – BASIC AND DILUTED
	  				  	 	(0.01	) 	 	 	(0.03	) 
		  				  	  
	  
	 	 	  
	  
	 
	 WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
	  				  	 	72,414,998	 	 	 	67,982,923	 
		  				  	  
	  
	 	 	  
	  
	 

 The accompanying notes are an integral part of these condensed interim consolidated financial statements 

  
 3 

 IMMUNOPRECISE ANTIBODIES LTD. 

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY 

(Unaudited – Expressed in Canadian dollars, except for share figures) 

 
  

																																	
	 	 	 	 	 	 	 	 	 	 	 	Convertible	 	 	 	 	 	Accumulated	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	Debentures	 	 	 	 	 	Other	 	 	 	 	 	 	 
	 	 	 	 	 	Share	 	 	Subscriptions	 	 	– Equity	 	 	Contributed	 	 	Comprehensive	 	 	 	 	 	 	 
	 	 	Number of	 	 	Capital	 	 	Received	 	 	Component	 	 	Surplus	 	 	(Loss) Income	 	 	Deficit	 	 	Total	 
	 	 	Shares	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 
	 Balance, April 30, 2019
	 	 	67,939,445	 	 	 	32,699,425	 	 	 	—  	 	 	 	—  	 	 	 	3,074,192	 	 	 	(228,060	) 	 	 	(17,476,482	) 	 	 	18,069,075	 
	 Adoption of IFRS 16 (Note 4)
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(54,744	) 	 	 	(54,744	) 
		 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Balance, May 1, 2019
	 	 	67,939,445	 	 	 	32,699,425	 	 	 	—  	 	 	 	—  	 	 	 	3,074,192	 	 	 	(228,060	) 	 	 	(17,531,226	) 	 	 	18,014,331	 
	 Subscriptions received
	 	 	—  	 	 	 	—  	 	 	 	1,500	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	1,500	 
	 Shares issued pursuant to option exercise
	 	 	50,000	 	 	 	26,355	 	 	 	—  	 	 	 	—  	 	 	 	(11,355	) 	 	 	—  	 	 	 	—  	 	 	 	15,000	 
	 Share-based payments
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	285,995	 	 	 	—  	 	 	 	—  	 	 	 	285,995	 
	 Comprehensive loss for the period
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(602,604	) 	 	 	(2,012,198	) 	 	 	(2,614,802	) 
		 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Balance, July 31, 2019
	 	 	67,989,445	 	 	 	32,725,780	 	 	 	1,500	 	 	 	—  	 	 	 	3,348,832	 	 	 	(830,664	) 	 	 	(19,543,424	) 	 	 	15,702,024	 
	 Shares issued pursuant to settlement of Debentures and accrued interest
	 	 	1,244,792	 	 	 	858,906	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	858,906	 
	 Shares issued pursuant to option exercise
	 	 	5,000	 	 	 	2,635	 	 	 	(1,500	) 	 	 	—  	 	 	 	(1,135	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Shares issued pursuant to warrant exercise
	 	 	680,971	 	 	 	499,621	 	 	 	—  	 	 	 	—  	 	 	 	(22,942	) 	 	 	—  	 	 	 	—  	 	 	 	476,679	 
	 Share-based payments
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	453,016	 	 	 	—  	 	 	 	—  	 	 	 	453,016	 
	 Comprehensive loss for the period
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	530,442	 	 	 	(2,935,228	) 	 	 	(2,404,786	) 
		 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Balance, April 30, 2020
	 	 	69,920,208	 	 	 	34,086,942	 	 	 	—  	 	 	 	—  	 	 	 	3,777,771	 	 	 	(300,222	) 	 	 	(22,478,652	) 	 	 	15,085,839	 
	 Shares issued pursuant to deferred acquisition payment to IPA Europe
	 	 	664,163	 	 	 	511,405	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	511,405	 
	 Shares issued pursuant to option exercise
	 	 	180,900	 	 	 	237,044	 	 	 	—  	 	 	 	—  	 	 	 	(99,199	) 	 	 	—  	 	 	 	—  	 	 	 	137,845	 
	 Shares issued pursuant to warrant exercise
	 	 	3,305,500	 	 	 	3,566,474	 	 	 	—  	 	 	 	—  	 	 	 	(53,199	) 	 	 	—  	 	 	 	—  	 	 	 	3,513,275	 
	 Convertible debentures
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	204,523	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	204,523	 
	 Share-based payments
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	97,273	 	 	 	—  	 	 	 	—  	 	 	 	97,273	 
	 Comprehensive income (loss) for the period
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	914,965	 	 	 	(549,318	) 	 	 	365,647	 
		 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Balance, July 31, 2020
	 	 	74,070,771	 	 	 	38,401,865	 	 	 	—  	 	 	 	204,523	 	 	 	3,722,646	 	 	 	614,743	 	 	 	(23,027,970	) 	 	 	19,915,807	 
		 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 

 The accompanying notes are an integral part of these condensed interim consolidated financial statements 

  
 4 

 IMMUNOPRECISE ANTIBODIES LTD. 

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS 

For the three months ended July 31, 2020 and 2019 

(Unaudited – Expressed in Canadian Dollars) 
  

									
	 	  	2020	 	 	2019	 
	 	  	$	 	 	$	 
	 Operating activities:
	  				 			
	 Net loss for the period
	  	 	(549,318	) 	 	 	(2,012,198	) 
	 Items not affecting cash:
	  				 			
	 Amortization and depreciation
	  	 	911,923	 	 	 	702,284	 
	 Deferred income taxes
	  	 	—  	 	 	 	(55,140	) 
	 Accretion
	  	 	101,145	 	 	 	552,893	 
	 Foreign exchange
	  	 	110,932	 	 	 	(118,983	) 
	 Share-based payments
	  	 	97,273	 	 	 	285,995	 
		  	  
	  
	 	 	  
	  
	 
		  	 	671,955	 	 	 	(645,149	) 
	 Changes in non-cash working capital related to
operations:
	  				 			
	 Amounts receivable
	  	 	(1,108,233	) 	 	 	217,161	 
	 Inventory
	  	 	(199,034	) 	 	 	101,746	 
	 Unbilled revenue
	  	 	(699,780	) 	 	 	155,970	 
	 Prepaid expenses
	  	 	79,485	 	 	 	15,172	 
	 Accounts payable and accrued liabilities
	  	 	550,756	 	 	 	(319,074	) 
	 Taxes payable and receivable
	  	 	259,978	 	 	 	141,532	 
	 Deferred revenue
	  	 	853,257	 	 	 	89,128	 
		  	  
	  
	 	 	  
	  
	 
	 Net cash provided by (used in) operating activities
	  	 	408,384	 	 	 	(243,514	) 
		  	  
	  
	 	 	  
	  
	 
	 Investing activities:
	  				 			
	 Purchase of equipment
	  	 	(10,566	) 	 	 	(70,894	) 
	 Internally generated development costs
	  	 	(21,049	) 	 	 	(10,621	) 
	 Deferred acquisition payment
	  	 	(518,534	) 	 	 	—  	 
		  	  
	  
	 	 	  
	  
	 
	 Net cash used in investing activities
	  	 	(550,149	) 	 	 	(81,515	) 
		  	  
	  
	 	 	  
	  
	 
	 Financing activities:
	  				 			
	 Proceeds on share issuance
	  	 	3,651,120	 	 	 	15,000	 
	 Subscriptions received
	  	 	—  	 	 	 	1,500	 
	 Repayment of leases
	  	 	(267,103	) 	 	 	(105,075	) 
	 Loan repayments
	  	 	(15,753	) 	 	 	(20,398	) 
	 Proceeds from convertible debentures, net of transaction costs
	  	 	2,201,821	 	 	 	—  	 
	 Repayment of debentures
	  	 	(2,000,000	) 	 	 	—  	 
		  	  
	  
	 	 	  
	  
	 
	 Net cash provided by financing activities
	  	 	3,570,085	 	 	 	(108,973	) 
		  	  
	  
	 	 	  
	  
	 
	 Increase (decrease) in cash during the period
	  	 	3,428,320	 	 	 	(434,002	) 
	 Foreign exchange
	  	 	27,479	 	 	 	(116,311	) 
	 Cash – beginning of the period
	  	 	2,690,835	 	 	 	5,539,100	 
		  	  
	  
	 	 	  
	  
	 
	 Cash – end of the period
	  	 	6,146,634	 	 	 	4,988,787	 
		  	  
	  
	 	 	  
	  
	 
	 Cash is comprised of:
	  				 			
	 Cash
	  	 	6,062,177	 	 	 	4,951,871	 
	 Restricted cash
	  	 	84,457	 	 	 	36,916	 
		  	  
	  
	 	 	  
	  
	 
		  	 	6,146,634	 	 	 	4,988,787	 
		  	  
	  
	 	 	  
	  
	 
	 Cash paid for interest
	  	 	61,644	 	 	 	1,196	 
	 Cash paid for income tax
	  	 	10,088	 	 	 	30,315	 

 Supplemental cash flow information (Note 17) 

The accompanying notes are an integral part of these condensed interim consolidated financial statements 

  
 5 

 IMMUNOPRECISE ANTIBODIES LTD. 

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

For the three months ended July 31, 2020 and 2019 

(Unaudited – Expressed in Canadian Dollars) 

 
  

	1.	 NATURE OF OPERATIONS 

ImmunoPrecise Antibodies Ltd. (the “Company” or “IPA”) was incorporated under the laws of Alberta on November 22,
1983. The Company is listed on the TSX Venture Exchange (the “Exchange”) as a Tier 2 life science issuer under the trading symbol “IPA”. The Company’s OTC symbol is “IPATF”. The Company is a supplier of custom
hybridoma development services. The address of the Company’s corporate office is 3204 – 4464 Markham Street, Victoria, BC, Canada V8Z 7X8. 

The condensed interim consolidated financial statements have been prepared on the basis of accounting principles applicable to a going concern.
This assumes the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its obligations in the normal course of operations. The Company has incurred operating losses since inception,
including $549,318 for the three months ended July 31, 2020 and has accumulated a deficit of $23,027,970 as at July 31, 2020. The Company may need to raise additional funds in order to continue on as a going concern and there can be no
assurances that sufficient funding, including adequate financing, will be available. The ability of the Company to arrange additional financing in the future depends in part, on the prevailing capital market conditions and profitability of its
operations. 
 In March 2020, there was a global pandemic outbreak of COVID-19. The actual and
threatened spread of the virus globally has had a material adverse effect on the global economy and specifically, the regional economies in which the Company operates. The pandemic could result in delays in the course of business and could have a
negative impact on the Company’s ability to raise new capital. It is not possible for the Company to predict the duration or magnitude of the adverse results of the outbreak and its effects on the Company’s business or results of
operations at this time. These material uncertainties may cast significant doubt on the Company’s ability to continue as a going concern. Accordingly, the condensed interim consolidated financial statements do not give effect to adjustments
that would be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and liquidate its liabilities, contingent obligations and commitments other than in the normal course of business and
at amounts different from those in the condensed interim consolidated financial statements. 
  

	2.	 BASIS OF PRESENTATION 

(a) Statement of compliance 

These condensed interim consolidated financial statements have been prepared in conformity with International Accounting Standard
(“IAS”) 34, Interim Financial Reporting, using the same accounting policies as detailed in the Company’s audited annual financial statements for the year ended April 30, 2020. They do not include all the information
required for complete annual financial statements in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”) and interpretations of the
International Financial Reporting Interpretations Committee (“IFRIC”) and therefore should be read together with the audited annual financial statements for the year ended April 30, 2020. 

These condensed interim consolidated financial statements were approved by the Board of Directors for issue on September 28, 2020. 

(b) Basis of measurement 

These condensed interim consolidated financial statements have been prepared on the historical cost basis. In addition, these condensed interim
consolidated financial statements have been prepared using the accrual basis of accounting, except for cashflow information. 

  
 6 

 IMMUNOPRECISE ANTIBODIES LTD. 

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

For the three months ended July 31, 2020 and 2019 

(Unaudited – Expressed in Canadian Dollars) 

 
  

 (c) Basis of consolidation 

These condensed interim consolidated financial statements include the financial statements of the Company and the following subsidiaries which
are wholly owned and subject to control by the Company: 
  

											
	 Name of Subsidiary
	  	% Equity
Interest - 2020	 	 	% Equity
Interest - 2019	 	 	Country of
Incorporation
	 ImmunoPrecise Antibodies (Canada) Ltd.
	  	 	100	% 	 	 	100	% 	 	Canada
	 ImmunoPrecise Antibodies (USA) Ltd.
	  	 	100	% 	 	 	100	% 	 	USA
	 ImmunoPrecise Antibodies (N.D.) Ltd.
	  	 	100	% 	 	 	100	% 	 	USA
	 ImmunoPrecise Antibodies (MA) LLC
	  	 	100	% 	 	 	100	% 	 	USA
	 Talem Therapeutics LLC
	  	 	100	% 	 	 	100	% 	 	USA
	 U-Protein Express B.V.
(“U-Protein”)
	  	 	100	% 	 	 	100	% 	 	Netherlands
	 ImmunoPrecise Netherlands B.V.
	  	 	100	% 	 	 	100	% 	 	Netherlands
	 ImmunoPrecise Antibodies (Europe) B.V. (“IPA Europe”, formerly ModiQuest Research
B.V.)
	  	 	100	% 	 	 	100	% 	 	Netherlands
	 Immulease B.V. (“Immulease”)
	  	 	100	% 	 	 	100	% 	 	Netherlands

 Control is achieved when the Company has the power to, directly or indirectly, govern the financial and
operating policies of an entity so as to obtain benefits from its activities. Subsidiaries are fully consolidated from the date on which control is obtained and continue to be consolidated until the date that such control ceases. Intercompany
balances, transactions and unrealized intercompany gains and losses are eliminated upon consolidation. 
 The Company incorporated a new
subsidiary, ImmunoPrecise Antibodies (USA) Ltd., in Delaware, USA on September 11, 2019. 
 (d) Functional and presentation currency

 The functional currency of a company is the currency of the primary economic environment in which the company operates. The
presentation currency for a company is the currency in which the company chooses to present its financial statements. 
 The functional
currency of the Company and ImmunoPrecise Antibodies (Canada) Ltd. is the Canadian dollar. The functional currency of ImmunoPrecise Antibodies (USA) Ltd., ImmunoPrecise Antibodies (N.D.) Ltd., ImmunoPrecise Antibodies (MA) LLC and Talem Therapeutics
LLC is the US dollar. The functional currency of U-Protein, ImmunoPrecise Netherlands BV, IPA Europe and Immulease is the Euro. The presentation currency of the Company is the Canadian dollar. 

Entities whose functional currencies differ from the presentation currency are translated into Canadian dollars as follows: assets and
liabilities – at the closing rate as at the reporting date, and income and expenses – at the average rate of the period. All resulting changes are recognized in other comprehensive income as cumulative translation differences. 

Transactions in foreign currencies are translated into the functional currency at exchange rates at the date of the transactions. Foreign
currency monetary assets and liabilities are translated at the functional currency exchange rate at the reporting date. Non-monetary items that are measured in terms of historical cost in a foreign currency
are translated using exchange rates as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the
fair value is determined. All gains and losses on translation of these foreign currency transactions are included in profit or loss. 

  
 7 

 IMMUNOPRECISE ANTIBODIES LTD. 

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

For the three months ended July 31, 2020 and 2019 

(Unaudited – Expressed in Canadian Dollars) 

 
  

 When the Company disposes of its entire interest in a foreign operation, or loses control,
joint control, or significant influence over a foreign operation, the foreign currency gains or losses accumulated in other comprehensive income related to the foreign operation are recognized in profit or loss. If an entity disposes of part of an
interest in a foreign operation which remains a subsidiary, a proportionate amount of foreign currency gains or losses accumulated in other comprehensive income related to the subsidiary are reallocated between controlling and non-controlling interests. 
  

	3.	 ADOPTION OF NEW ACCOUNTING STANDARDS 

The Company has adopted the following new standards, along with any consequential amendments, effective May 1, 2019. These changes were
made in accordance with the applicable transitional provisions. 
 The Company adopted all of the requirements of IFRS 16, Leases
(“IFRS 16”) as of May 1, 2019. IFRS 16 replaces IAS 17, Leases (“IAS 17”). IFRS 16 provides a single lessee accounting model, requiring lessees to recognize assets and liabilities for all leases unless the lease term
is 12 months or less or the underlying asset has a low value. The Company has adopted IFRS 16 using the modified retrospective application method, where the 2019 comparatives are not restated and a cumulative catch up adjustment is recorded on
May 1, 2019 for any differences identified, including adjustments to opening deficit balance. 
 The Company analyzed its contracts to
identify whether they contain a lease arrangement for the application of IFRS 16. The following is the Company’s new accounting policy for leases under IFRS 16: 

At inception of a contract, the Company assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the
contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. 
 Leases of right-of-use assets are recognized at the lease commencement date at the present value of the lease payments that are not paid at that date. The lease payments are discounted
using the interest rate implicit in the lease, if that rate can be readily determined, and otherwise at the Company’s incremental borrowing rate. At the commencement date, a
right-of-use asset is measured at cost, which is comprised of the initial amount of the lease liability adjusted for any lease payments made at or before the
commencement date, plus any decommissioning and restoration costs, less any lease incentives received. 
 Each lease payment is allocated
between repayment of the lease principal and interest. Interest on the lease liability in each period during the lease term is allocated to produce a constant periodic rate of interest on the remaining balance of the lease liability. Except where
the costs are included in the carrying amount of another asset, the Company recognizes in profit or loss (a) the interest on a lease liability and (b) variable lease payments not included in the measurement of a lease liability in the
period in which the event or condition that triggers those payments occurs. The Company subsequently measures a right-of-use asset at cost less any accumulated
depreciation and any accumulated impairment losses; and adjusted for any remeasurement of the lease liability. Right-of-use assets are depreciated over the shorter of
the asset’s useful life and the lease term, except where the lease contains a bargain purchase option a right-of-use asset is depreciated over the asset’s
useful life. 
 On the date of transition, the Company recorded a
right-of-use asset of $1,668,533 related to the office rent in property and equipment, and the lease obligation of $1,723,277 was recorded as at May 1, 2019,
discounted using the Company’s incremental borrowing rate of 8%, and measured at an amount equal to the lease obligation as if IFRS 16 had been applied since the commencement date. The net difference between right-of-use assets and lease liabilities on the date of transition was recognized as a deficit adjustment of $54,744 on May 1, 2019. 

  
 8 

 IMMUNOPRECISE ANTIBODIES LTD. 

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

For the three months ended July 31, 2020 and 2019 

(Unaudited – Expressed in Canadian Dollars) 

 
  

	4.	 CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS 

The preparation of the condensed interim consolidated financial statements in conformity with IFRS required estimates and judgments that affect
the amounts reported in the financial statements. Actual results could differ from these estimates and judgments. Estimates are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the year in which the estimate is
revised. Significant areas requiring the use of estimates and judgments are as follows: 
 Functional currency 

The Company has used judgment in determining the currency of the primary economic environment in which the entity operates. 

Amounts receivable 
 The
Company monitors the financial stability of its customers and the environment in which they operate to make estimates regarding the likelihood that the individual trade receivable balances will be paid. Credit risks for outstanding customer
receivables are regularly assessed and allowances are recorded for estimated losses, if required. 
 Property and equipment 

The Company has used estimates in the determination of the expected useful lives of property and equipment. 

Revenue recognition 
 The percentage-of-completion method requires the use of estimates to determine the stage of completion which is used to determine the recorded amount of revenue, unbilled revenue
and deferred revenue on uncompleted contracts. The determination of anticipated revenues includes the contractually agreed revenue and may also involve estimates of future revenues if such additional revenues can be reliably estimated and it is
considered probable that they will be recovered. The determination of anticipated costs for completing a contract is based on estimates that can be affected by a variety of factors, including the cost of materials, labour, and sub-contractors. The determination of estimates is based on the Company’s business practices as well as its historical experience. 

Impairments 
 For the
purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (“CGU”s). Each asset or CGU is evaluated every reporting period to determine whether there are any indicators
of impairment. If any such indicators exist, which is often judgment-based, a formal estimate of recoverable amount is performed and an impairment charge is recognized to the extent that the carrying amount exceeds the recoverable amount. The
recoverable amount of an asset or CGU of assets is measured at the higher of fair value less costs of disposal or value in use. These determinations and their individual assumptions require that management make a decision based on the best available
information at each reporting period. The estimates and assumptions are subject to risk and uncertainty; hence, there is the possibility that changes in circumstances will alter these projections, which may impact the recoverable amount of the
assets. In such circumstances, some or all of the carrying value of the assets may be further impaired or the impairment charge reversed with the impact recorded in profit or loss. 

The Company performs a goodwill impairment test annually and when circumstances indicate that the carrying value may not be recoverable. For
the purposes of impairment testing, goodwill acquired through business combinations has been allocated to two different CGUs. The recoverable amount of each CGU was based on value in use, determined by discounting the future cash flows to be
generated from the continuing use of the CGU. The cash flows were projected over a five-year period based on past experience and actual operating results. 

  
 9 

 IMMUNOPRECISE ANTIBODIES LTD. 

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

For the three months ended July 31, 2020 and 2019 

(Unaudited – Expressed in Canadian Dollars) 

 
  

 The Company performed its annual goodwill impairment test in April 2020 and no impairment was
indicated for the period tested. The values assigned to the key assumptions represented management’s assessment of future trends in the industry and were based on hgarristorical data from both internal and external sources. Weighted average
costs of capital of 16.33% and 12.26%, respectively, was used in the assessments of the two CGUs. 
 Determination of segments 

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses. All
operating segments’ results are reviewed by the Company’s management in order to make decisions regarding the allocation of resources to the segment. Segment results include items directly attributable to a segment as those that can be
allocated on a reasonable basis. 
 As the Company provides antibody production and related services in one distinct segment. 

Life of intangible assets 

Intangible assets are amortized based on estimated useful life less their estimated residual value. Significant assumptions are involved in the
determination of useful life and residual values and no assurance can be given that actual useful lives and residual values will not differ significantly from current assumptions. Actual useful life and residual values may vary depending on a number
of factors including internal technical evaluation, attributes of the assets and experience with similar assets. Changes to these estimates may affect the carrying value of assets, net income (loss) and comprehensive income (loss) in future periods.

 Purchase price allocation 

The acquisition of U-Protein on August 22, 2017 and the acquisition of IPA Europe and Immulease on
April 5, 2018 were accounted for as business combinations at fair value in accordance with IFRS 3, Business Combinations. The acquired assets and assumed liabilities were adjusted to their fair values assigned through completion of a
purchase price allocation, as described below. 
 The purchase price allocation process resulting from a business combination required
management to estimate the fair value of identifiable assets acquired including intangible assets and liabilities assumed including the deferred acquisition payment obligations. The Company used valuation techniques, which were based on forecasted
future net cash flows discounted to present value, and also relied on work performed by third-party valuation specialists. These valuations were closely linked to the assumptions used by management on the future performance of the related assets and
the discount rates applied. 
  

	5.	 ACQUISITION OF U-PROTEIN 

On August 22, 2017, the Company completed the acquisition of U-Protein whereby the Company
acquired all of the issued and outstanding shares of U-Protein for €6,830,000 on terms as follows: 
  

	 	•	 	 €2,734,732 (CAD$4,062,607) was paid in cash on closing; 

 

	 	•	 	 3,030,503 common shares of the Company were issued on closing; and 

 

	 	•	 	 €2,047,634 in deferred payments over a three-year period. The deferred payments can be made in cash or
common shares of the Company at the election of U-Protein shareholders. 

 The
transaction was accounted for as a business combination, as the operations of U-Protein meet the definition of a business. As the transaction was accounted for as a business combination, transaction costs of
$17,717 were expensed. The goodwill resulting from the allocation of the purchase price to the total fair value of net assets represented the sales and growth potential of U-Protein. Goodwill recorded is
allocated in its entirety to U-Protein. The fair value of the 3,030,503 common shares issued ($3,022,308) was determined based on the Canadian dollar equivalent of the consideration required of €2,047,634
pursuant to the share purchase agreement. The Company has allocated the purchase price as follows: 

  
 10 

 IMMUNOPRECISE ANTIBODIES LTD. 

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

For the three months ended July 31, 2020 and 2019 

(Unaudited – Expressed in Canadian Dollars) 

 
  

					
	 	  	$	 
	 Cash
	  	 	4,062,607	 
	 3,030,503 common shares of the Company
	  	 	3,022,308	 
	 Fair value of deferred payments
	  	 	2,134,410	 
		  	  
	  
	 
	 Fair value of consideration
	  	 	9,219,325	 
		  	  
	  
	 
	 Cash
	  	 	797,276	 
	 Amounts receivable
	  	 	370,530	 
	 Unbilled revenue
	  	 	112,815	 
	 Inventory
	  	 	36,900	 
	 Investment
	  	 	90,404	 
	 Equipment, net of accumulated amortization
	  	 	216,161	 
	 Intellectual property (not deductible for tax purposes)
	  	 	4,064,000	 
	 Goodwill (not deductible for tax purposes)
	  	 	4,655,893	 
	 Accounts payable and accrued liabilities
	  	 	(269,657	) 
	 Income taxes payable
	  	 	(44,197	) 
	 Deferred income tax liability
	  	 	(810,800	) 
		  	  
	  
	 
		  	 	9,219,325	 
		  	  
	  
	 

 The deferred payments of €2,047,634 over a three-year period was fair valued on the date of acquisition
using a discounted cash flow model. A discount rate of 16.2% was used. The changes in the value of the deferred payments during the three months ended July 31, 2020 and the year ended April 30, 2020 are as follows: 

 

					
	 	  	$	 
	 Balance, April 30, 2019
	  	 	1,562,696	 
	 Accretion expense
	  	 	350,137	 
	 Payment
	  	 	(1,007,435	) 
	 Foreign exchange
	  	 	26,130	 
		  	  
	  
	 
	 Balance, April 30, 2020
	  	 	931,528	 
	 Accretion expense
	  	 	36,983	 
	 Foreign exchange
	  	 	47,541	 
		  	  
	  
	 
	 Balance, July 31, 2020
	  	 	1,016,052	 
		  	  
	  
	 

  

	6.	 ACQUISITION OF IPA EUROPE AND IMMULEASE 

On April 5, 2018, the Company acquired all of the issued and outstanding shares of IPA Europe and its sister entity, Immulease, for an
aggregate purchase price of €7,000,000 on terms as follows: 
  

	 	•	 	 €2,500,000 (CAD$3,988,132) was paid in cash on closing; 

 

	 	•	 	 6,600,399 common shares of the Company were issued on closing; and 

 

	 	•	 	 €2,000,000 in deferred payments over a three-year period. The deferred payments are made in three equal
installments of cash and equity totaling €666,666 and prorated if the EBITDA of IPA Europe for the fiscal year preceding the date of payment is less than its average EBITDA over the previous two fiscal years. During the year ended
April 30, 2019, the Company and the seller entered into an Amendment, Termination and Settlement Agreement whereby the deferred payments shall no longer be subject to an adjustment and will be paid in equal installments of cash and equity
totaling €666,666. 

 The transaction was accounted for as a business combination, as the operations of IPA Europe and
Immulease meet the definition of a business. The goodwill resulting from the allocation of the purchase price to the total fair value of net assets represented the sales and growth potential of IPA Europe. Goodwill recorded is 

  
 11 

 IMMUNOPRECISE ANTIBODIES LTD. 

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

For the three months ended July 31, 2020 and 2019 

(Unaudited – Expressed in Canadian Dollars) 

 
  

 allocated in its entirety to IPA Europe. The fair value of the 6,600,399 common shares issued
($4,884,295) was determined to be $0.74 per share based on the fair value of the Company’s shares immediately prior to the completion of the acquisition. The Company has allocated the purchase price as follows: 

 

					
	 	  	$	 
	 Cash
	  	 	3,988,132	 
	 6,600,399 common shares of the Company
	  	 	4,884,295	 
	 Fair value of deferred payments
	  	 	2,353,708	 
		  	  
	  
	 
	 Fair value of consideration
	  	 	11,226,135	 
		  	  
	  
	 
	 Cash
	  	 	270,339	 
	 Amounts receivable
	  	 	572,427	 
	 Unbilled revenue
	  	 	90,052	 
	 Inventory
	  	 	2,286,995	 
	 Equipment, net of accumulated amortization
	  	 	568,221	 
	 Software
	  	 	30,974	 
	 Intangible assets (not deductible for tax purposes)
	  	 	6,304,863	 
	 Goodwill (not deductible for tax purposes)
	  	 	3,640,671	 
	 Accounts payable and accrued liabilities
	  	 	(580,339	) 
	 Deferred revenue
	  	 	(22,897	) 
	 Loans
	  	 	(298,979	) 
	 Deferred income tax liability
	  	 	(1,636,192	) 
		  	  
	  
	 
		  	 	11,226,135	 
		  	  
	  
	 

 The deferred payments of €2,000,000 over a three-year period was fair valued on the date of acquisition
using a discounted cash flow model. A discount rate of 14% was used. The changes in the value of the deferred payments during the three months ended July 31, 2020 and the year ended April 30, 2020 are as follows: 

 

					
	 	  	$	 
	 Balance, April 30, 2019
	  	 	1,501,285	 
	 Accretion expense
	  	 	382,928	 
	 Foreign exchange
	  	 	9,699	 
		  	  
	  
	 
	 Balance, April 30, 2020
	  	 	1,893,912	 
	 Accretion expense
	  	 	32,963	 
	 Repayment
	  	 	(1,029,939	) 
	 Foreign exchange
	  	 	63,391	 
		  	  
	  
	 
	 Balance, July 31, 2020
	  	 	960,327	 
		  	  
	  
	 

  

	7.	 INVESTMENT 

Investment consists of a 29% (2019 – 29%) interest in QVQ Holding B.V. (“QVQ”), which is recorded using the equity method, being
the best approximation of the investment’s fair value. Judgment is required as to the extent of influence that the Company has over QVQ. The Company considered the extent of voting power over the entity, the power to participate in financial
and operating policy decisions of the entity, representation on the board of directors, material transactions between the entities, interchange of management personnel, and provision of essential technical information. The Company has determined
that the Company is not considered to have significant influence over QVQ, as the Company does not have the power to participate in financial and operating policy decisions, does not have representation on the Board of Directors of QVQ, and the
majority of the common shares are held by QVQ management. 

  
 12 

 IMMUNOPRECISE ANTIBODIES LTD. 

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

For the three months ended July 31, 2020 and 2019 

(Unaudited – Expressed in Canadian Dollars) 

 
  

	8.	 PROPERTY AND EQUIPMENT 

 

																																	
	 	  	Computer
Hardware	 	 	Furniture &
Equipment	 	 	Computer
Software	 	 	Building	 	 	Automobile	 	  	Leasehold
Improvements	 	 	Lab
Equipment	 	 	Total	 
	 	  	$	 	 	$	 	 	$	 	 	$	 	 	$	 	  	$	 	 	$	 	 	$	 
	 Cost:
	  				 				 				 				 				  				 				 			
	 Balance, April 30, 2019
	  	 	110,997	 	 	 	111,065	 	 	 	130,015	 	 	 	—  	 	 	 	—  	 	  	 	393,421	 	 	 	3,369,010	 	 	 	4,114,508	 
	 IFRS 16 transition adjustment
	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	1,668,533	 	 	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	1,668,533	 
	 Additions
	  	 	16,999	 	 	 	—  	 	 	 	—  	 	 	 	905,225	 	 	 	48,997	 	  	 	6,495	 	 	 	350,260	 	 	 	1,327,976	 
	 Disposals
	  	 	(73,697	) 	 	 	(75,052	) 	 	 	(80,193	) 	 	 	(196,325	) 	 	 	—  	 	  	 	(49,221	) 	 	 	(633,152	) 	 	 	(1,107,640	) 
	 Foreign exchange
	  	 	—  	 	 	 	—  	 	 	 	97	 	 	 	6,166	 	 	 	972	 	  	 	—  	 	 	 	12,367	 	 	 	19,602	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Balance, April 30, 2020
	  	 	54,299	 	 	 	36,013	 	 	 	49,919	 	 	 	2,383,599	 	 	 	49,969	 	  	 	350,695	 	 	 	3,098,485	 	 	 	6,022,979	 
	 Additions
	  	 	2,236	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	865,902	 	 	 	868,138	 
	 Foreign exchange
	  	 	(28	) 	 	 	—  	 	 	 	1,605	 	 	 	78,082	 	 	 	2,680	 	  	 	—  	 	 	 	119,011	 	 	 	201,350	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Balance, July 31, 2020
	  	 	56,507	 	 	 	36,013	 	 	 	51,524	 	 	 	2,461,681	 	 	 	52,649	 	  	 	350,695	 	 	 	4,083,398	 	 	 	7,092,467	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Accumulated Depreciation:
	  				 				 				 				 				  				 				 			
	 Balance, April 30, 2019
	  	 	88,135	 	 	 	85,636	 	 	 	48,789	 	 	 	—  	 	 	 	—  	 	  	 	205,816	 	 	 	2,047,583	 	 	 	2,475,959	 
	 Depreciation
	  	 	23,016	 	 	 	7,194	 	 	 	66,198	 	 	 	696,948	 	 	 	7,145	 	  	 	69,273	 	 	 	497,409	 	 	 	1,367,183	 
	 Disposals
	  	 	(73,697	) 	 	 	(75,052	) 	 	 	(80,193	) 	 	 	—  	 	 	 	—  	 	  	 	(49,221	) 	 	 	(633,152	) 	 	 	(911,315	) 
	 Foreign exchange
	  	 	—  	 	 	 	—  	 	 	 	170	 	 	 	3,366	 	 	 	142	 	  	 	—  	 	 	 	9,712	 	 	 	13,390	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Balance, April 30, 2020
	  	 	37,454	 	 	 	17,778	 	 	 	34,964	 	 	 	700,314	 	 	 	7,287	 	  	 	225,868	 	 	 	1,921,552	 	 	 	2,945,217	 
	 Depreciation
	  	 	8,085	 	 	 	1,781	 	 	 	1,972	 	 	 	175,123	 	 	 	3,291	 	  	 	17,534	 	 	 	184,902	 	 	 	392,688	 
	 Foreign exchange
	  	 	—  	 	 	 	—  	 	 	 	801	 	 	 	20,739	 	 	 	390	 	  	 	—  	 	 	 	81,242	 	 	 	103,172	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Balance, July 31, 2020
	  	 	45,539	 	 	 	19,559	 	 	 	37,737	 	 	 	896,176	 	 	 	10,968	 	  	 	243,402	 	 	 	2,187,696	 	 	 	3,441,077	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net Book Value:
	  				 				 				 				 				  				 				 			
	 April 30, 2020
	  	 	16,845	 	 	 	18,235	 	 	 	14,955	 	 	 	1,683,285	 	 	 	42,682	 	  	 	124,827	 	 	 	1,176,933	 	 	 	3,077,762	 
	 July 31, 2020
	  	 	10,968	 	 	 	16,454	 	 	 	13,787	 	 	 	1,565,505	 	 	 	41,681	 	  	 	107,293	 	 	 	1,895,702	 	 	 	3,651,390	 

  

	9.	 INTANGIBLE ASSETS 

The intangible assets were acquired as a result of the acquisitions of U-Protein and IPA Europe and are
amortized using the straight-line method over their useful lives. The intellectual property has a useful life of 10 years, and the proprietary processes have a useful life of 5 years. The internally generated development costs will commence
amortizing once the development process is ready to be used. The changes in the value of the intangible assets during the three months ended July 31, 2020 and the year ended April 30, 2020 are as follows: 

 

																					
	 	  	Internally
Generated
Development
Costs	 	  	Intellectual
Property	 	  	Proprietary
Processes	 	  	Certifications	 	  	Total	 
	 	  	$	 	  	$	 	  	$	 	  	$	 	  	$	 
	 Cost:
	  				  				  				  				  			
	 Balance, April 30, 2019
	  	 	—  	 	  	 	4,145,225	 	  	 	7,740,010	 	  	 	139,707	 	  	 	12,024,942	 
	 Additions
	  	 	114,042	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	114,042	 
	 Foreign exchange
	  	 	533	 	  	 	13,464	 	  	 	25,140	 	  	 	454	 	  	 	39,591	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Balance, April 30, 2020
	  	 	114,575	 	  	 	4,158,689	 	  	 	7,765,150	 	  	 	140,161	 	  	 	12,178,575	 
	 Additions
	  	 	21,049	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	21,049	 
	 Foreign exchange
	  	 	4,383	 	  	 	223,024	 	  	 	416,433	 	  	 	7,517	 	  	 	651,357	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Balance, July 31, 2020
	  	 	140,007	 	  	 	4,381,713	 	  	 	8,181,583	 	  	 	147,678	 	  	 	12,850,981	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Accumulated Amortization:
	  				  				  				  				  			
	 Balance, April 30, 2019
	  	 	—  	 	  	 	635,601	 	  	 	1,162,592	 	  	 	—  	 	  	 	1,798,193	 
	 Amortization
	  	 	—  	 	  	 	406,334	 	  	 	1,634,830	 	  	 	—  	 	  	 	2,041,164	 
	 Foreign exchange
	  	 	—  	 	  	 	11,600	 	  	 	42,226	 	  	 	—  	 	  	 	53,826	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Balance, April 30, 2020
	  	 	—  	 	  	 	1,053,535	 	  	 	2,839,648	 	  	 	—  	 	  	 	3,893,183	 
	 Amortization
	  	 	—  	 	  	 	109,543	 	  	 	409,692	 	  	 	—  	 	  	 	519,235	 
	 Foreign exchange
	  	 	—  	 	  	 	56,499	 	  	 	152,286	 	  	 	—  	 	  	 	208,785	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Balance, July 31, 2020
	  	 	—  	 	  	 	1,219,577	 	  	 	3,401,626	 	  	 	—  	 	  	 	4,621,203	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Net Book Value:
	  				  				  				  				  			
	 April 30, 2020
	  	 	114,575	 	  	 	3,105,154	 	  	 	4,925,502	 	  	 	140,161	 	  	 	8,285,392	 
	 July 31, 2020
	  	 	140,007	 	  	 	3,162,136	 	  	 	4,779,957	 	  	 	147,678	 	  	 	8,229,778	 

  
 13 

 IMMUNOPRECISE ANTIBODIES LTD. 

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

For the three months ended July 31, 2020 and 2019 

(Unaudited – Expressed in Canadian Dollars) 

 
  

	10.	 DEBENTURES 

On April 5, 2018, the Company completed a nonconvertible debenture (the “Debentures”) financing in the principal amount of
$4,252,000 (the “Offering”). The Debentures were unsecured, bore interest at a rate of 10% per annum, payable semi-annually, and were due eighteen months from the date of issue. Under the Offering, a holder of a Debenture received 37,500
detachable share purchase warrants (the “Warrants”) for every $25,000 of Debentures subscribed for by the holder. The Warrants are exercisable at $0.70 per share for a period of four years from the date of issue. The fair value of the
Debentures at the time of issue was calculated as the discounted cash flows assuming a 15% effective interest rate. The fair value of the Warrants was determined at the time of issue as the difference between the face value and the fair value of the
Debentures. On initial recognition, the Company bifurcated $4,003,125 to the carrying value of the Debentures and $248,875 to the Warrants. 

Under the Offering, the Company paid the following finder’s fees: $10,300 in cash, 580,320 shares of the Company with a fair value of
$383,010, and 415,942 finder’s warrants valued at $187,627. The fair value of the finder’s warrants was estimated on the date of issue using the Black-Scholes option valuation model with the following weighted average assumptions: dividend
yield of $nil, risk free interest rate of 1.60%, expected life of 4 years and expected volatility based on the historical volatility of similar companies of 100%. The total fair value of the finder’s fees was allocated pro-rata based on the carrying values of the Debentures and Warrants, with $546,934 allocated to the Debentures and $34,003 allocated to the Warrants. 

On October 25, 2018, the Company settled $1,377,000 of the Debentures by issuing 1,377,000 units at a price of $1.00 per unit. Each unit
consisted of one common share of the Company and one share purchase warrant, with each warrant entitling the holder to purchase an additional share at $1.25 for two years. The fair value of the 1,377,000 common shares issued was determined to be
$1,115,370. The fair value of the warrants issued was determined to be $283,000 and estimated on the date of issue using the Black-Scholes option valuation model with the following weighted average assumptions: dividend yield of $nil, risk free
interest rate of 1.58%, expected life of 2 years and expected volatility based on the historical volatility of similar companies of 68.7%. The settlement resulted in a loss of $189,715. 

On September 26, 2019, the Company modified the terms of $2,750,000 Debentures to extend the due date by 6 months to March 26, 2020,
with the ability to pay earlier with no penalty, and increased the interest rate to 12.5%. The remaining debentures of $125,000 were paid on maturity. 

On March 26, 2020, the Company settled $700,000 of the Debentures plus accrued interest of $46,875 by issuing 1,244,792 common shares. The
fair value of the 1,244,792 common shares issued was determined to be $858,906. The settlement resulted in a loss of $112,031. $50,000 of the Debentures were paid on maturity. The maturity date of the remaining Debentures of $2,000,000 was extended
to September 26, 2020. 

  
 14 

 IMMUNOPRECISE ANTIBODIES LTD. 

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

For the three months ended July 31, 2020 and 2019 

(Unaudited – Expressed in Canadian Dollars) 

 
  

 The Company repaid the remaining balance of $2,000,000 plus interest during the three months ended
July 31, 2020. 
 The changes in the value of the Debentures during the three months ended July 31, 2020 and the year ended April 30, 2020
are as follows: 
  

					
	 	  	$	 
	 Balance, April 30, 2019
	  	 	2,708,334	 
	 Accretion expense
	  	 	166,666	 
	 Repayment
	  	 	(175,000	) 
	 Settlement of debentures
	  	 	(700,000	) 
		  	  
	  
	 
	 Balance, April 30, 2020
	  	 	2,000,000	 
	 Repayment
	  	 	(2,000,000	) 
		  	  
	  
	 
	 Balance, July 31, 2020
	  	 	—  	 
		  	  
	  
	 

  

	11.	 LOANS PAYABLE 

On April 5, 2018, the Company assumed loans payable of €60,750 (CAD$94,995) as a result of the acquisition of IPA Europe. On
July 7, 2015, IPA Europe entered into a loan agreement in the principal amount of €165,000, maturing on July 31, 2020. The loan was secured by certain equipment, bore an interest rate of 4% per annum and was repayable in monthly
installments of €2,250. The interest was owed per month in arrears. The principal outstanding at July 31, 2020 is €nil (CAD$nil) (April 30, 2020 – €4,500 (CAD$6,797)). 

On April 5, 2018, the Company assumed loans payable of €56,450 (CAD$88,271) as a result of the acquisition of IPA Europe. On
February 1, 2016, IPA Europe entered into a loan agreement in the principal amount of €100,000, maturing on February 28, 2021. The loan is secured by certain equipment, bears an interest rate of 3% per annum and is repayable in
monthly installments of €1,675. The interest is owed per month in arrears. The principal outstanding at July 31, 2020 is €9,550 (CAD$15,198) (April 30, 2020 – €14,575 (CAD$22,014)). 

On April 15, 2020, the Company was approved for a US$209,000 loan under the Payroll Protection Program (“PPP”) administered by
the U.S. Small Business Administration. The loan accrues interest at 1% per annum and is repayable in monthly installments of US$11,761 starting in November 2020 until April 2022. The PPP is a US$349 billion loan program that originated from
the U.S. Coronavirus Aid, Relief and Economic Security (CARES) Act. The PPP loan has a term of two years, is unsecured, and is guaranteed by the U.S. Small Business Administration. The loan will be forgiven if the proceeds are used by the Company to
cover payroll costs (including benefits), with up to 25% allowed for rent and utilities, during the eight-week period following the loan origination date. The Company expects to meet the requirements for full loan forgiveness and will apply for
lender forgiveness after the required September 30, 2020 federal and state employment related filings are complete. 

  
 15 

 IMMUNOPRECISE ANTIBODIES LTD. 

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

For the three months ended July 31, 2020 and 2019 

(Unaudited – Expressed in Canadian Dollars) 

 
  

					
	 	  	$	 
	 Balance, April 30, 2019
	  	 	111,670	 
	 Loan proceeds
	  	 	283,328	 
	 Loan repayments and foreign exchange
	  	 	(82,859	) 
		  	  
	  
	 
	 Balance, April 30, 2020
	  	 	312,139	 
	 Loan repayments and foreign exchange
	  	 	(15,753	) 
		  	  
	  
	 
	 Balance, July 31, 2020
	  	 	296,386	 
	 Current portion
	  	 	(107,287	) 
		  	  
	  
	 
	 Non-current portion
	  	 	189,099	 
		  	  
	  
	 

  

	12.	 CONVERTIBLE DEBENTURES 

On May 15, 2020, the Company closed a non-brokered private placement financing by issuing 10%
convertible debentures (“New Debentures”) for total proceeds of $2,592,000. On May 27, 2020, the Company issued an additional $35,000 of the 10% New Debentures. In total, the Company issued $2,627,000 of the New Debentures. The New
Debentures are unsecured, bear interest at a rate of 10% per year and payable at maturity. The maturity date is May 15, 2022 for $2,592,000 of the New Debentures and May 22, 2022 for $35,000 of the New Debentures. The principal amount of
the New Debentures may be convertible, at the option of the holder, into units of the Company at a conversion price of $0.85 per share. The Company may force convert the principal amount of the New Debentures at $0.85 per share if the average
closing price is equal to or greater than $1.50 for 20 trading days. 
 In advance of the closing of the New Debentures, the Company had
received $313,268 of the proceeds as at April 30, 2020. 
 The fair value of the New Debentures at the time of issue was calculated as
the discounted cash flows assuming a 15% effective interest rate. The fair value of the equity component was determined at the time of issue as the difference between the face value and the fair value of the New Debentures. On initial recognition,
the Company bifurcated $2,413,377 to the carrying value of the New Debentures and $213,623 to the equity component.     

Under the financing, the Company paid finders cash commissions totaling $82,580 and incurred legal and filing fees of $29,331. The transaction
costs were allocated pro-rata based on the carrying values of the New Debentures and the equity component, with $102,811 allocated to the New Debentures and $9,100 allocated to the equity component. 

During the three months ended July 31, 2020, the Company recorded accretion expense of $31,199 (2019 – $nil). The changes in the
value of the New Debentures during the three months ended July 31, 2020 are as follows: 
  

									
	 	  	Liability
Component	 	  	Equity
Component	 
	 	  	$	 	  	$	 
	 Balance, April 30, 2020
	  	 	—  	 	  	 	—  	 
	 Proceeds
	  	 	2,413,377	 	  	 	213,623	 
	 Transaction costs
	  	 	(102,811	) 	  	 	(9,100	) 
	 Accretion expense
	  	 	31,199	 	  	 	—  	 
		  	  
	  
	 	  	  
	  
	 
	 Balance, July 31, 2020
	  	 	2,341,765	 	  	 	204,523	 
		  	  
	  
	 	  	  
	  
	 

  
 16 

 IMMUNOPRECISE ANTIBODIES LTD. 

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

For the three months ended July 31, 2020 and 2019 

(Unaudited – Expressed in Canadian Dollars) 

 
  

	13.	 LEASES 

The Company entered into certain equipment and automobile leases expiring between 2021 and 2023 with interest rates of between 8% and 17% per
annum. The Company’s obligations under these finance leases are secured by the lessor’s title to the leased assets. The Company also entered into office leases in January 2018, May 2018, May 2019 and June 2019. With the adoption of IFRS
16, Leases (see Note 3), the Company recognized a lease obligation with regard to the office leases. The terms and the outstanding balances as at July 31, 2020 and April 30, 2020 are as follows: 

 

									
	 	  	July 31,
2020
$	 	  	April 30,
2020
$	 
	 Equipment under lease in monthly instalments of $1,228 with interests of between 13% and 17% per
annum. Due dates are between May 2021 and March 2023.
	  	 	59,616	 	  	 	71,222	 
	 Equipment under lease in monthly instalments of $22,309 with interest rate of 8% per annum and an
end date of May 2023.
	  	 	638,227	 	  	 	—  	 
	 Automobile under lease in monthly instalments of $1,155 with an interest rate of 8% per annum and
an end date of September 2023.
	  	 	42,702	 	  	 	43,330	 
	 Right-of-use asset
from office lease repayable in monthly instalments of $9,602 and an interest rate of 8% per annum and an end date of May 2021. The obligation includes an early termination fee of $15,981.
	  	 	107,598	 	  	 	135,230	 
	 Right-of-use asset
from office lease repayable in monthly instalments of $16,445 and an interest rate of 8% per annum and an end date of December 2022.
	  	 	458,465	 	  	 	475,727	 
	 Right-of-use asset
from office lease repayable in monthly instalments of $23,236 and an interest rate of 8% per annum and an end date of December 2022.
	  	 	648,806	 	  	 	673,235	 
	 Right-of-use asset
from office lease repayable in monthly instalments of $13,891 to $21,015 and an interest rate of 8% per annum and an end date of April 2023.
	  	 	431,258	 	  	 	485,307	 
	 Current portion
	  	 	(698,715	) 	  	 	(752,306	) 
		  	  
	  
	 	  	  
	  
	 
	 Non-current portion
	  	 	1,687,957	 	  	 	1,131,744	 
		  	  
	  
	 	  	  
	  
	 

 As at July 31, 2020, the Company’s lab equipment and automobile include a net carrying amount of
$793,557 (April 30, 2020 – $77,285) for the leased equipment and $41,681 (April 30, 2020 – $42,682) for the leased automobile. The net carrying amount of the
right-of-use assets from office lease obligation is $1,565,505 (April 30, 2020 – $1,683,285). 

  
 17 

 IMMUNOPRECISE ANTIBODIES LTD. 

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

For the three months ended July 31, 2020 and 2019 

(Unaudited – Expressed in Canadian Dollars) 

 
  

 The following is a schedule of the Company’s future minimum lease payments related to
the equipment under finance lease and the office lease obligation: 
  

					
	 	  	$	 
	 2021
	  	 	835,659	 
	 2022
	  	 	982,598	 
	 2023
	  	 	780,764	 
	 2024
	  	 	16,928	 
		  	  
	  
	 
	 Total minimum lease payments
	  	 	2,615,949	 
	 Less: imputed interest
	  	 	(229,277	) 
		  	  
	  
	 
	 Total present value of minimum lease payments
	  	 	2,386,672	 
	 Less: Current portion
	  	 	(698,715	) 
		  	  
	  
	 
	 Non-current portion
	  	 	1,687,957	 
		  	  
	  
	 

  

	14.	 SHARE CAPITAL 

a) Authorized: 
 Unlimited
common shares without par value. 
 b) Share capital transactions: 

2020 Transactions 
 On
March 26, 2020, the Company settled $700,000 of the Debentures plus accrued interest of $46,875 by issuing 1,244,792 common shares (Note 10). The fair value of the 1,244,792 common shares issued was determined to be $858,906. The settlement
resulted in a loss of $112,031. 
 During the year ended April 30, 2020, the Company issued 55,000 common shares pursuant to exercise of
stock options for total gross proceeds of $16,500. A value of $12,490 was transferred from contributed surplus to share capital as a result. The weighted average share price at dates the stock options were exercised was $0.69. 

During the year ended April 30, 2020, the Company issued 680,971 common shares pursuant to exercise of warrants and finder’s warrants
for total gross proceeds of $476,679. A value of $22,942 was transferred from contributed surplus to share capital as a result. 
 2021
Transactions 
 On May 1, 2020, the Company issued 664,163 common shares pursuant to the second deferred payment for the acquisition
of IPA Europe (Note 6). The common shares were valued at $511,405. 
 During the three months ended July 31, 2020, the Company issued
180,900 common shares pursuant to exercise of stock options for total gross proceeds of $137,845. A value of $99,199 was transferred from contributed surplus to share capital as a result. The weighted average share price at dates the stock options
were exercised was $1.46. 
 During the three months ended July 31, 2020, the Company issued 3,305,500 common shares pursuant to
exercise of warrants and finder’s warrants for total gross proceeds of $3,513,275. A value of $53,199 was transferred from contributed surplus to share capital as a result. 

  
 18 

 IMMUNOPRECISE ANTIBODIES LTD. 

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

For the three months ended July 31, 2020 and 2019 

(Unaudited – Expressed in Canadian Dollars) 

 
  

 c) Options 

The Company has an incentive Stock Option Plan (“the Plan”) under which non-transferable
options to purchase common shares of the Company may be granted to directors, officers, employees or service providers of the Company. The terms of the plan provide that the Directors have the right to grant options to acquire common shares of the
Company at not less than the closing market price of the shares on the day preceding the grant at terms of up to five years. The maximum number of options outstanding under the Plan shall not result, at any time, in more than 10% of the issued and
outstanding common shares. 
 On October 3 2019, the Company granted 250,000 stock options, exercisable at $0.475 per option, to an
officer of the Company. The options are subject to vesting conditions as follows: one-third 6 months after grant date; one-third 12 months after grant date and one-third 18 months after grant date. The fair value of these options was estimated to be $86,395 using the Black-Scholes option pricing model and the following assumptions: share price on grant date of $0.48,
dividend yield of 0%, expected volatility of 100%, a risk-free interest rate of 1.46%, and an expected life of 5 years. 
 On October 3,
2019, the Company granted 200,000 stock options, exercisable at $1.00 per option, to a consultant of the Company. The options vested immediately upon grant. The fair value of these options was estimated to be $32,096 using the Black-Scholes option
pricing model and the following assumptions: share price on grant date of $0.48, dividend yield of 0%, expected volatility of 100%, a risk-free interest rate of 1.56%, and an expected life of 2 years. 

On October 3, 2019, the Company granted 150,000 stock options, exercisable at $0.50 per option, to a director of the Company. The options
are subject to vesting conditions as follows: one-third 6 months after grant date; one-third 12 months after grant date and
one-third 18 months after grant date. The fair value of these options was estimated to be $53,326 using the Black-Scholes option pricing model and the following assumptions: share price on grant date of $0.48,
dividend yield of 0%, expected volatility of 100%, a risk-free interest rate of 1.46%, and an expected life of 5 years. 
 On October 3,
2019, the Company granted 65,000 stock options, exercisable at $1.01 per option, to employees of the Company. The options vested immediately upon grant. The fair value of these options was estimated to be $14,627 using the Black-Scholes option
pricing model and the following assumptions: share price on grant date of $0.48, dividend yield of 0%, expected volatility of 100%, a risk-free interest rate of 1.54%, and an expected life of 2.96 years. 

On April 3, 2020, the Company granted 55,000 stock options, exercisable at $1.01 per option, to employees of the Company. The options are
subject to vesting conditions as follows: one-third 6 months after grant date; one-third 12 months after grant date and one-third
18 months after grant date. The fair value of these options was estimated to be $20,582 using the Black-Scholes option pricing model and the following assumptions: share price on grant date of $0.69, dividend yield of 0%, expected volatility of
100%, a risk-free interest rate of 0.75%, and an expected life of 3 years. 
 On April 29, 2020, the Company granted 250,000 stock
options, exercisable at $0.76 per option, to an officer of the Company. The options are subject to vesting conditions as follows: one-third 6 months after grant date;
one-third 12 months after grant date and one-third 18 months after grant date. The fair value of these options was estimated to be $129,340 using the Black-Scholes
option pricing model and the following assumptions: share price on grant date of $0.76, dividend yield of 0%, expected volatility of 100%, a risk-free interest rate of 0.38%, and an expected life of 3.93 years. 

Expected volatility was based on the historical volatility of similar companies. 

During the three months ended July 31, 2020 the Company has recorded $97,273 (2019 - $285,995) of share-based payments expense. 

  
 19 

 IMMUNOPRECISE ANTIBODIES LTD. 

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

For the three months ended July 31, 2020 and 2019 

(Unaudited – Expressed in Canadian Dollars) 

 
  

 The changes in the stock options for the three months ended July 31, 2020 and the year
ended April 30, 2020 are as follows: 
  

													
	 	  	Number of
options
#	 	  	Weighted
average
exercise price
$	 	  	Weighted
average life
remaining
(years)	 
	 Balance, April 30, 2019 (outstanding)
	  	 	5,303,333	 	  	 	0.78	 	  	 	3.87	 
	 Granted
	  	 	970,000	 	  	 	0.73	 	  	 	—  	 
	 Exercised
	  	 	(55,000	) 	  	 	0.30	 	  	 	—  	 
	 Forfeited
	  	 	(903,333	) 	  	 	0.73	 	  	 	—  	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Balance, April 30, 2020 (outstanding)
	  	 	5,315,000	 	  	 	0.77	 	  	 	3.03	 
	 Exercised
	  	 	(180,900	) 	  	 	0.77	 	  	 	—  	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Balance, July 31, 2020 (outstanding)
	  	 	5,134,100	 	  	 	0.77	 	  	 	2.79	 
	 Unvested
	  	 	(571,667	) 	  	 	0.66	 	  	 	3.81	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Exercisable, July 31, 2020
	  	 	4,562,433	 	  	 	0.78	 	  	 	2.66	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

 Details of the options outstanding as at July 31, 2020 are as follows: 

 

																					
	 Expiry Date
	  	Exercise price
$	 	  	Remaining life
(year)	 	  	Options
outstanding	 	 	Unvested	 	  	Vested	 
	 October 1, 2021
	  	 	1.00	 	  	 	1.17	 	  	 	200,000	 	 	 	—  	 	  	 	200,000	 
	 December 20, 2021
	  	 	0.30	 	  	 	1.39	 	  	 	510,000	(1) 	 	 	—  	 	  	 	510,000	 
	 September 18, 2022
	  	 	1.01	 	  	 	2.13	 	  	 	887,500	(2) 	 	 	—  	 	  	 	887,500	 
	 January 3, 2023
	  	 	0.65	 	  	 	2.43	 	  	 	250,000	 	 	 	—  	 	  	 	250,000	 
	 February 7, 2023
	  	 	0.47	 	  	 	2.52	 	  	 	700,000	 	 	 	—  	 	  	 	700,000	 
	 April 3, 2023
	  	 	1.01	 	  	 	2.67	 	  	 	55,000	(3)  	 	 	55,000	 	  	 	—  	 
	 September 24, 2023
	  	 	0.95	 	  	 	3.15	 	  	 	95,000	 	 	 	—  	 	  	 	95,000	 
	 November 7, 2023
	  	 	0.80	 	  	 	3.27	 	  	 	121,600	(4) 	 	 	—  	 	  	 	121,600	 
	 November 7, 2023
	  	 	0.82	 	  	 	3.27	 	  	 	100,000	 	 	 	—  	 	  	 	100,000	 
	 December 31, 2023
	  	 	1.00	 	  	 	3.42	 	  	 	1,250,000	 	 	 	—  	 	  	 	1,250,000	 
	 January 7, 2024
	  	 	0.76	 	  	 	3.44	 	  	 	300,000	(5) 	 	 	—  	 	  	 	300,000	 
	 January 11, 2024
	  	 	1.00	 	  	 	3.45	 	  	 	15,000	 	 	 	—  	 	  	 	15,000	 
	 April 1, 2024
	  	 	0.76	 	  	 	3.67	 	  	 	250,000	 	 	 	250,000	 	  	 	—  	 
	 October 1, 2024
	  	 	0.475	 	  	 	4.17	 	  	 	250,000	 	 	 	166,667	 	  	 	83,333	 
	 October 3, 2024
	  	 	0.50	 	  	 	4.18	 	  	 	150,000	 	 	 	100,000	 	  	 	50,000	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 
	 	  	0.77	 	  	2.79	 	  	5,134,100	 	 	571,667	 	  	4,562,433	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 

  

	(1) 	 280,000 of these stock options have been exercised subsequent to July 31, 2020. 

	(2) 	 15,000 of these stock options have been exercised subsequent to July 31, 2020. 

	(3) 	 5,000 of these stock options have been exercised subsequent to July 31, 2020. 

	(4) 	 121,600 of these stock options have been exercised subsequent to July 31, 2020. 

	(5) 	 These options were amended during the year ended April 30, 2020 from an exercise price of $1.00 to $0.76.

  
 20 

 IMMUNOPRECISE ANTIBODIES LTD. 

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

For the three months ended July 31, 2020 and 2019 

(Unaudited – Expressed in Canadian Dollars) 

 
  

 d) Warrants 

The changes in the warrants for the three months ended July 31, 2020 and the year ended April 30, 2020 are as follows: 

 

													
	 	  	Number of
warrants
#	 	  	Weighted average
exercise price
$	 	  	Weighted average life
remaining (years)	 
	 Balance, April 30, 2019
	  	 	17,732,500	 	  	 	1.04	 	  	 	1.90	 
	 Exercised
	  	 	(675,000	) 	  	 	0.70	 	  	 	—  	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Balance, April 30, 2020
	  	 	17,057,500	 	  	 	1.05	 	  	 	0.91	 
	 Exercised
	  	 	(3,283,500	) 	  	 	1.07	 	  	 	—  	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Balance, July 31, 2020
	  	 	13,774,000	 	  	 	1.05	 	  	 	0.70	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

 Details of the warrants outstanding as at July 31, 2020 are as follows: 

 

													
	 Expiry Date
	  	Exercise price
$	 	  	Remaining life
(year)	 	  	Warrants
outstanding	 
	 March 26, 2022
	  	 	0.70	 	  	 	1.65	 	  	 	4,998,000	(1) 
	 September 24, 2020
	  	 	1.25	 	  	 	0.15	 	  	 	7,494,000	(2) 
	 October 25, 2020
	  	 	1.25	 	  	 	0.24	 	  	 	1,282,000	(3) 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
		  	 	1.05	 	  	 	0.70	 	  	 	13,774,000	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

  

	(1) 	 75,000 of these warrants have been exercised subsequent to July 31, 2020. 

	(2) 	 All of these warrants have been exercised subsequent to July 31, 2020. (3) 244,000 of these warrants have
been exercised subsequent to July 31, 2020. 

 e) Finder’s Warrants 

The changes in the finder’s warrants for the three months ended July 31, 2020 and the year ended April 30, 2020 are as follows:

  

													
	 	  	Number of
warrants
#	 	  	Weighted average
exercise price
$	 	  	Weighted average life
remaining (years)	 
	 Balance, April 30, 2019
	  	 	415,942	 	  	 	0.70	 	  	 	2.91	 
	 Exercised
	  	 	(5,971	) 	  	 	0.70	 	  	 	—  	 
	 Balance, April 30, 2020
	  	 	409,971	 	  	 	0.70	 	  	 	1.90	 
	 Exercised
	  	 	(22,000	) 	  	 	0.70	 	  	 	—  	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Balance, July 31, 2020
	  	 	387,971	 	  	 	0.70	 	  	 	1.65	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

 As at July 31, 2020, the Company has 387,971 finder’s warrants outstanding. The warrants have an
exercise price of $0.70 per share and expire on March 26, 2022. 
  

	15.	 RELATED PARTY TRANSACTIONS 

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the
Company. Key management consists of Dr. Jennifer Bath, President and CEO; Lisa Helbling, CFO; Dr. Stefan Lang, Chief Business Officer; Dr. Yasmina Abdiche, Chief Scientific Officer; Charles Wheelock, former Chief Technology Officer;
Natasha Tsai, former CFO; Reginald Beniac, former Chief Operating Officer; Oren Beske, former President of ImmunoPrecise Antibodies (USA) Ltd.; Martin Hessing, a former Director of U-Protein; Jos Raats, former
President and CEO of IPA Europe; and Directors of the Company. During the three months ended July 31, 2020 and 2019, the compensation for key management is as follows: 

  
 21 

 IMMUNOPRECISE ANTIBODIES LTD. 

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

For the three months ended July 31, 2020 and 2019 

(Unaudited – Expressed in Canadian Dollars) 

 
  

									
	 	  	2020
$	 	  	2019
$	 
	 Management fees
	  	 	15,737	 	  	 	45,148	 
	 Salaries and other short-term benefits
	  	 	603,895	 	  	 	485,845	 
	 Severance
	  	 	62,768	 	  	 	—  	 
	 Share-based payments
	  	 	90,701	 	  	 	264,882	 
		  	  
	  
	 	  	  
	  
	 
		  	 	773,101	 	  	 	795,875	 
		  	  
	  
	 	  	  
	  
	 

 At July 31, 2020, included in accounts payable and accrued liabilities is $590,197 (April 30, 2020 -
$412,188) due to related parties. 
 During the year ended April 30, 2020, a company controlled by Martin Hessing, a former Director of U-Protein, sold certain equipment to U-Protein for a cash consideration of €25,000. 

These transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration
established and agreed to by the related parties, unless otherwise noted. 
  

	16.	 SEGMENTED INFORMATION AND ECONOMIC DEPENDENCE 

At July 31, 2020 and April 30, 2020, the Company has one reportable segment, being antibody production and related services. 

During the three months ended July 31, 2020, the Company had sales to nil (2019 - nil) customer who in aggregate accounted for more than
10% (2019 – 10%) of revenue. 
 The Company’s revenues are allocated to geographic segments for the three months ended
July 31, 2020 and 2019 as follows: 
  

									
	 	  	2020
$	 	  	2019
$	 
	 United States of America
	  	 	1,752,079	 	  	 	904,377	 
	 Canada
	  	 	291,950	 	  	 	206,823	 
	 Europe
	  	 	1,284,203	 	  	 	1,505,926	 
	 Other
	  	 	436,745	 	  	 	98,973	 
		  	  
	  
	 	  	  
	  
	 
		  	 	3,764,977	 	  	 	2,716,099	 
		  	  
	  
	 	  	  
	  
	 

 The Company’s revenues are allocated according to revenue types for the three months ended July 31,
2020 and 2019 as follows: 
  

									
	 	  	2020
$	 	  	2019
$	 
	 Project revenue
	  	 	3,472,810	 	  	 	2,611,868	 
	 Product sales revenue
	  	 	288,232	 	  	 	60,234	 
	 Cryo storage revenue
	  	 	3,935	 	  	 	43,997	 
		  	  
	  
	 	  	  
	  
	 
		  	 	3,764,977	 	  	 	2,716,099	 
		  	  
	  
	 	  	  
	  
	 

  
 22 

 IMMUNOPRECISE ANTIBODIES LTD. 

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

For the three months ended July 31, 2020 and 2019 

(Unaudited – Expressed in Canadian Dollars) 

 
  

 The Company’s non-current assets are allocated
to geographic segments as at July 31, 2020 and April 30, 2020 as follows: 
  

									
	 	  	July 31,
2020
$	 	  	April 30,
2020
$	 
	 North America
	  	 	1,981,023	 	  	 	1,429,210	 
	 Netherlands
	  	 	18,444,778	 	  	 	18,134,469	 
		  	  
	  
	 	  	  
	  
	 
		  	 	20,425,801	 	  	 	19,563,679	 
		  	  
	  
	 	  	  
	  
	 

 Geographic segmentation of the Company’s net income (loss) for the three months ended July 31, 2020
and 2019 is as follows: 
  

									
	 	  	2020
$	 	  	2019
$	 
	 North America—Corporate
	  	 	(680,365	) 	  	 	(1,974,763	) 
	 North America
	  	 	(299,074	) 	  	 	(112,064	) 
	 Netherlands
	  	 	430,121	 	  	 	74,629	 
		  	  
	  
	 	  	  
	  
	 
		  	 	(549,318	) 	  	 	(2,012,198	) 
		  	  
	  
	 	  	  
	  
	 

 Geographic segmentation of the interest and accretion, and amortization and depreciation for the three months
ended July 31, 2020 and 2019 is as follows: 
  

									
	 Interest and accretion
	  	2020
$	 	  	2019
$	 
	 North America—Corporate
	  	 	188,474	 	  	 	630,675	 
	 North America
	  	 	23,980	 	  	 	23,975	 
	 Netherlands
	  	 	58,497	 	  	 	17,203	 
		  	  
	  
	 	  	  
	  
	 
		  	 	270,951	 	  	 	671,853	 
		  	  
	  
	 	  	  
	  
	 
			
	 Amortization and depreciation
	  	2020
$	 	  	2019
$	 
	 North America—Corporate
	  	 	6,588	 	  	 	20,640	 
	 North America
	  	 	180,347	 	  	 	126,771	 
	 Netherlands
	  	 	724,988	 	  	 	554,873	 
		  	  
	  
	 	  	  
	  
	 
		  	 	911,923	 	  	 	702,284	 
		  	  
	  
	 	  	  
	  
	 

  

	17.	 SUPPLEMENTAL CASH FLOW INFORMATION 

 

									
	 Non-cash investing and
financing transactions:
	  	July 31,
2020
$	 	  	July 31,
2019
$	 
	 Acquisition of building and equipment by capital lease
	  	 	769,725	 	  	 	1,668,533	 
	 Fair value of shares issued pursuant to deferred acquisition payment to IPA Europe
	  	 	511,405	 	  	 	—  	 

  
 23 

 IMMUNOPRECISE ANTIBODIES LTD. 

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

For the three months ended July 31, 2020 and 2019 

(Unaudited – Expressed in Canadian Dollars) 

 
  

 The following changes in liabilities arose from financing activities: 

 

																													
	 	  	 	 	  	 	 	 	Non-cash changes	 	  	 	 
	 	  	April 30,
2020
$	 	  	Cash Flows
$	 	 	Acquisition
$	 	  	Settlement
/ Disposal
$	 	 	Accretion
$	 	  	Foreign
exchange
movements
and change
in estimates
$	 	  	July 31,
2020
$	 
	 Deferred acquisition payments
	  	 	2,825,440	 	  	 	(518,534	) 	 	 	—  	 	  	 	(511,405	) 	 	 	69,946	 	  	 	110,932	 	  	 	1,976,379	 
	 Debentures
	  	 	2,000,000	 	  	 	(2,000,000	) 	 	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	—  	 
	 Convertible debentures
	  	 	313,268	 	  	 	1,997,298	 	 	 	—  	 	  	 	—  	 	 	 	31,199	 	  	 	—  	 	  	 	2,341,765	 
	 Loans payable
	  	 	312,139	 	  	 	(15,753	) 	 	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	296,386	 
	 Leases
	  	 	1,884,050	 	  	 	(267,103	) 	 	 	684,753	 	  	 	—  	 	 	 	—  	 	  	 	84,972	 	  	 	2,386,672	 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total
	  	 	7,334,897	 	  	 	(804,092	) 	 	 	684,753	 	  	 	(511,405	) 	 	 	101,145	 	  	 	195,904	 	  	 	7,001,202	 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 

  

																									
	 	  	 	 	  	 	 	 	Non-cash changes	 	 	 	 
	 	  	April 30,
2019
$	 	  	Cash Flows
$	 	 	Acquisition
$	 	  	Accretion
$	 	  	Foreign
exchange
movements
and change
in estimates
$	 	 	July 31,
2019
$	 
	 Deferred acquisition payments
	  	 	3,063,981	 	  	 	—  	 	 	 	—  	 	  	 	457,137	 	  	 	(118,983	) 	 	 	3,402,135	 
	 Debentures
	  	 	2,708,334	 	  	 	—  	 	 	 	—  	 	  	 	95,756	 	  	 	—  	 	 	 	2,804,090	 
	 Loans payable
	  	 	111,670	 	  	 	(20,398	) 	 	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	91,272	 
	 Leases
	  	 	107,077	 	  	 	(105,075	) 	 	 	1,723,277	 	  	 	—  	 	  	 	—  	 	 	 	1,725,279	 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Total
	  	 	5,991,062	 	  	 	(125,473	) 	 	 	1,723,277	 	  	 	552,893	 	  	 	(118,983	) 	 	 	8,022,776	 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 

  

	18.	 SUBSEQUENT EVENTS 

Subsequent to July 31, 2020, the Company granted 250,000 stock options at a price of $1.50 per share for a period of 3 years. The
options are subject to following vesting period: 25% at three months after the date of grant and 25% every three months thereafter. 

Subsequent to July 31, 2020, the Company granted 1,350,000 stock options at a price of $1.70 per share for a period of 5 years. The
options are subject to following vesting period: one-third at six months after the date of grant and one-third every six months thereafter. 

  
 24EX-4.5

 Exhibit 4.5 
  

 
 IMMUNOPRECISE ANTIBODIES LTD. 

MANAGEMENT DISCUSSION AND ANALYSIS 
 FOR THE THREE
MONTHS ENDED JULY 31, 2020 
  
  

 The following Management’s Discussion and Analysis (“MD&A”), prepared as of
September 28, 2020, should be read in conjunction with the unaudited condensed interim consolidated financial statements of ImmunoPrecise Antibodies Ltd. (“the Company”, “ImmunoPrecise” or “IPA”) for the three
months ended July 31, 2020, together with the audited financial statements and accompanying MD&A of the Company for the year ended April 30, 2020. This MD&A is the responsibility of management and has been reviewed and approved by
the Board of Directors of IPA. 
 The referenced financial statements have been prepared in accordance with International Financial Reporting Standards
(“IFRS”), as issued by the International Accounting Standards Board and as applicable to the preparation of interim financial statements, including IAS 34, Interim Financial Reporting. Except as otherwise noted, all dollar figures
in this MD&A are stated in Canadian dollars, which is the Company’s reporting currency. 
 FORWARD-LOOKING STATEMENTS 

This MD&A may contain certain statements that constitute “forward-looking statements” within the meaning of National Instrument 51-102, Continuous Disclosure Obligations of the Canadian Securities Administrators. 
 Forward-looking statements often,
but not always, are identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect”, “targeting” and “intend” and statements that an
event or result “may”, “will”, “should”, “could”, or “might” occur or be achieved and other similar expressions. 

In this MD&A, forward-looking statements include the Company’s future plans and expenditures, the satisfaction of rights and performance of
obligations under agreements to which the Company is a part, the ability of the Company to hire and retain employees and consultants and estimated administrative assessment and other expenses. The forward-looking statements that are contained in
this MD&A involve a number of risks and uncertainties. As a consequence, actual results might differ materially from results forecast or suggested in these forward-looking statements. Some of these risks and uncertainties are identified under
the heading “RISKS AND UNCERTAINTIES” in this MD&A. 
 Furthermore, forward-looking statements contained herein are made as of the date of
this MD&A and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking statements will prove to
be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. 

GENERAL 
 The Company was incorporated under the laws of
Alberta on November 22, 1983, and is listed on the TSX 
 Venture Exchange (the “Exchange”) as a Tier 2 life science issuer under the trading
symbol “IPA”. The Company’s OTC symbol is “IPATF”. The address of the Company’s corporate office is 3204 – 4464 Markham Street, Victoria, BC V8Z 7X8.  

OVERVIEW 
 ImmunoPrecise is a leading, global, technology
platform company with full service, end-to-end solutions that empower pharmaceutical companies across the globe to discover, develop, optimize, engineer and manufacture
therapeutic antibodies against any disease. The Company’s experience, cutting-edge technologies and focus on intense scientific rigor enables unparalleled support of its partners in their quest to bring innovative treatments to the clinic. 

  
 1 

 

 
 IMMUNOPRECISE ANTIBODIES LTD. 

MANAGEMENT DISCUSSION AND ANALYSIS 
 FOR THE THREE
MONTHS ENDED JULY 31, 2020 
  
  

 With ImmunoPrecise’s industry-leading technologies, fully integrated project management team and
software, and one-stop service offerings, the Company dramatically reduces the time required for, and the inherent risk associated with, conventional multi-vendor product development. 

The Company has gained global recognition as a leader in antibody discovery and development. IPA has achieved organic growth through market penetration and
service diversification, as well as accretive growth through strategic expansion, acquiring and integrating the most innovative technologies from across the globe. ImmunoPrecise houses a streamlined and exceptionally comprehensive capabilities
platform in biologics discovery, development and manufacturing to enable an unparalleled single-vendor approach. 
 ImmunoPrecise boasts a highly
experienced executive team which was further expanded during the last fiscal year, adding Dr. Stefan Lang (formerly of Aldevron and Genovac) and Dr. Yasmina Abdiche (formerly of Carterra and Pfizer-Rinat). 

The Company has standardized and unified global activities, recognizing cost synergies and centralizing oversight to maximize transparency and financial
gains. The departments of marketing, sales, project management, business development, finance and IT are now centralized and uniformly serve all of the subsidiaries to ensure consistent messaging, quality and accuracy of information. 

Operations 
 IPA’s services include, but are
not limited to, custom antigen modeling, design and manufacturing; proprietary B cell sorting, screening and sequencing; custom, immune and naïve phage display production and screening; hybridoma production with multiplexed, high-throughput
screening and clone-picking; expertise with transgenic animals and multi-species antibody discovery; antibody characterization studies such as affinity measurements, functional assays and epitope mapping and binning;
bi-specific, tri-specific, VHH, and VNAR (shark) antibody manufacturing; DNA synthesis and cloning, protein and antibody downstream processing with purification of
protein in gram scale levels including characterization and validation; antibody engineering; transient and stable cell line generation; antibody optimization and humanization; and cryopreservation. 

The Company continues to expand on its approximate twelve years of expertise in single B cell interrogation, offering full-service B cell screening, sorting
and sequencing at IPA Canada. This service is available against all classes of targets including complex proteins, small molecules and various chemical groups. The Company’s platforms enable antibody screening directly from B cells,
facilitating the analysis of a more diverse set of antibodies, and for faster, deeper screening compared to traditional technologies. The Company announced an over 90% success rate on its B cell technology, which is offered with a success guarantee.
By adding a high throughput, label-free Octet HTX biosensor (FortéBio, Sartorius) at IPA Canada, the Company addressed the need for increased speed and sample throughput when characterizing large panels of therapeutic antibody candidates.

 IPA Canada and IPA Europe have both been designated as approved CROs for the world’s leading, transgenic animal platforms producing human
antibodies. Leveraging this opportunity, the Company made strategic investments in R&D activities to develop proprietary technologies enabling the application of their B cell SelectTM and
DeepDisplayTM platforms to a broad range of transgenic animal species and strains. 

  
 2 

 

 
 IMMUNOPRECISE ANTIBODIES LTD. 

MANAGEMENT DISCUSSION AND ANALYSIS 
 FOR THE THREE
MONTHS ENDED JULY 31, 2020 
  
  

 IPA Europe’s contribution in services and intellectual property to the Company are substantial. The
integration of IPA Europe significantly expanded the Company’s services portfolio including affinity maturation, humanization, functional assay design and development, naïve and diseased scFv libraries, and proprietary methods of
immunization against conformational targets (e.g. ModiVaccTM lymphoid tumor immunization and DNA immunization technologies). Using the discovery technologies of ModiFuseTM (hybridoma
electrofusion), ModiSelectTM (B-cell selection) and ModiPhageTM (phage display) technologies,
IPA Europe can generate very large panels of monoclonal antibodies from various backgrounds including mouse, rat, rabbit, chicken, llama and human, as well as transgenic animals harboring the human antibody gene repertoire. Adding to their
proprietary services, IPA Europe developed and rolled-out the aforementioned DeepDisplay service for the discovery of fully human antibodies using transgenic animal immunization and custom phage display. 

U-Protein Express (“UPE”) has been a staple in the recombinant protein community, operating for close to 20
years, and specializing in the manufacture of complex proteins and antibodies in a variety of formats and from a range of mammalian cell types. Their streamlined and efficient operations have enabled them to successfully support over 5,000 different
programs, with an over 90% success rate, for pharmaceutical and biotechnology industries as well as leading, academic institutions. In a seamless coordination, their operations also support the downstream expression and purification of antibodies
originating from the Company’s B cell Select programs, enabling validation of the platform’s outputs and comprehensive deliverables for clients. 

UPE holds a global, exclusive license from Stanford University for the marketing and sales of the novel protein, Wnt surrogate Fc, used as a growth factor for
organoid culture. In addition, they hold a non-exclusive distributor agreement for this protein with a major player in the study of organoid biology. As a further addition to their unique offerings, UPE also
began offering SARS-CoV-2-specific protein products to the public for use in diagnostic, therapeutic and vaccine work. 

While the Company has strategically reduced overhead by eliminating much of its non-wet lab footprint, eliminating
substantial square footage dedicated to offices and gathering spaces, it has continued to invest significantly in ROI-generating capacity, committing to new laboratory build outs and equipment purchases to
support its continued, aggressive growth. In January 2020, UPE signed a long-term lease contract for a new multi-tenant building for life sciences at the Utrecht Science Park (Utrecht, The Netherlands) alongside important stakeholders such as Genmab
and Merus. Furthermore, along with SGI-DNA, Inc., IPA announced that UPE integrated SGI-DNA’s benchtop automated DNA printer, making IPA the first CRO in Europe to integrate the BioXpTM
3200 System in its workflow as a part of the Company’s vision for adopting breakthrough technologies in the discovery and manufacturing of antibodies. IPA aims to positively impact their manufacturing capacities by converting the antibody
design-synthesis-screening timeline from weeks and months down to days, providing clear advantages to their partners. 
 Talem Therapeutics

 Talem Therapeutics (“Talem”) oversees and houses the internal and partnered therapeutic pipeline for the Company. Talem offers strategic
partnerships with pharma and biotech companies and is the only company to offer these services in OmniAb® transgenic animals using its own license. The Company has leveraged several of its
progressive technologies to discover novel therapeutics for its pipeline using Ligand’s OmniRat® strains. 

Talem’s pipeline is indication agnostic and has expanded to include single monoclonal antibody therapeutics, combination antibody therapies and vaccines.
The therapies target a variety of diseases within the areas of immuno-oncology, cancer, autoimmunity, inflammation and COVID-19. 

  
 3 

 

 
 IMMUNOPRECISE ANTIBODIES LTD. 

MANAGEMENT DISCUSSION AND ANALYSIS 
 FOR THE THREE
MONTHS ENDED JULY 31, 2020 
  
  

 Talem is in a unique position to access IPA’s highly effective discovery platforms and end-to-end services that are used to successfully generate therapeutic pipelines for leading biotech and pharmaceutical companies, at a fraction of the cost to the Company.
Talem also has a distinct advantage in accessing the decades of experience in antibody therapeutic design, discovery and development at each of IPA’s subsidiaries, while also drawing on the clinical and commercial experience of the executive
management team, in a consolidated and focused effort. 
 Talem Therapeutics entered into a research license agreement with Janssen Research &
Development. The agreement, which provided Janssen exclusive access to a panel of novel, monoclonal antibodies, is anticipated to be the first of many out-licensing deals. The financial details of the
transaction were not disclosed at the request of Janssen. 
 In February 2020, IPA announced its commitment to developing innovative vaccines and
therapeutics against the SARS-CoV-2 spike protein, using their proprietary discovery platforms in an exceptionally broad, global campaign. The Company’s objective
was further clarified in March, when IPA defined their PolyTopeTM approach, utilizing highly characterized protein and antibody combinations targeting multiple epitopes and mechanisms of virus evasion. This approach is designed to provide maximum
clinical benefit against both current and future variants and strains of the virus by combining well-defined and fully characterized, protective antibodies (for therapeutics) and epitopes (for vaccines). 

ImmunoPrecise went on to share the confirmation of multiple panels of potently neutralizing, fully human antibodies targeting
SARS-CoV-2. The antibodies were soon shown to exhibit synergistic activity in neutralization studies, demonstrating that the presence of specific combinations of
antibodies had enhanced the effect of neutralization activity. 
 Soon thereafter, the Company announced a collaboration with Integrated Biotherapeutics and
the National Institutes of Health to determine the structural details of IPA’s lead candidate antibodies interacting with the epitopes they bind to on the
SARS-CoV-2 spike protein. This data will support the Company’s vaccine design, as well as patent and IND applications. 

The Company continued to advance lead candidates by utilizing high-throughput binding assays, computational optimization (ArtemisTM), and protein interaction analyses to yield valuable data sets for informed preclinical lead selection. 

Using much of this data as supporting material, the Company began successfully obtaining external, non-dilutive, non-debt funding through various granting agencies to support their Coronavirus endeavors and asset generation. This included a grant from NSERC to fund a collaboration between the University of Victoria and IPA
Canada to generate an antibody-based saliva diagnostic test that can be conducted at home, with results analyzed using a cell phone application providing real-time, confidential data to health authorities. The Company then received funding through
TRANSVAC2, a European vaccine network, to support a collaboration with LiteVax BV to conduct pre-clinical trials for one of IPA’s vaccine candidates. Finally, IPA received the Biosciences CARES grant from
the Department of Agriculture of the State of North Dakota for the amount of 1.5 million USD to support the discovery, development and testing of SARS-CoV-2
therapeutic candidates to help treat critically ill patients and to protect those that are at high risk of contracting COVID-19. 

The SARS-CoV-2 programs are one aspect of Talem’s asset development. The
aggressive advancement of Talem’s pipeline is a key priority for IPA, and the Company hopes to complete multiple commercial deals in Talem Therapeutics during the fiscal year 2021. 

  
 4 

 

 
 IMMUNOPRECISE ANTIBODIES LTD. 

MANAGEMENT DISCUSSION AND ANALYSIS 
 FOR THE THREE
MONTHS ENDED JULY 31, 2020 
  
  

 STRATEGY AND OUTLOOK 

Our management team has a passionate emphasis on initiatives designed to drive revenue, bolster internal assets and maximize shareholder value. We aim to
continue to build on revenue and asset generation through internal development and well-informed, strategic acquisitions and joint ventures. Our strategy also includes growth through alliances and partnerships, within both our research (Talem) and
service sectors, as well as potential new market sectors. 
 Operations 

Our objective is to continue to aggressively expand our market share as we assist our partners with building their pipelines, expanding the volume and size of
projects with our partners, and on-boarding new clients by actively introducing them to the benefits of extensive vendor consolidation, the routinely high success rates of our programs and fast turnaround
times. We continue to possess a competitive advantage with our integrated end-to-end platform, coupled with a strong, scientific
know-how, enabling us to navigate our partners through the process of discovery, development and manufacturing. Our ability to customize programs, yet maintain scientific rigor, enables our clients to
access our global portfolio of services with confidence. Our personable and responsible global project management team and unified software ensures that our clients have program details at their fingertips, at any minute, in any time zone,
with the security measures needed to ensure our clients’ peace of mind. The biologics market growth is driven by new products and expanded approvals for new indications. Most large pharmaceutical companies are already spending a large
part of their R&D budget allocations on biopharmaceuticals. The production of supplies under GMP for R&D and clinical trials in this field is dominated by the use of disposable bioreactor systems, which are much smaller in size, and require
less infrastructure investments, compared to larger stainless-steel facilities. IPA is actively seeking federal funding to engage in this area of increasing demand for GMP manufactured biologics. 

Our strategy is supported by growing trends in pharma and finance. Global pharmaceutical companies are continuing to increase their share of reliance on
CRO’s to improve the efficiency and cost of development, increase turnaround time, and access advanced and integrated expertise. When analyzing pharmaceutical outsourcing trends, from October 2019, several major drivers of the CRO industry
growth were identified, including robust biopharmaceutical funding, accelerated drug approval rates, the growing number of clinical trials, and proliferation of biopharmaceutical companies without internal research and clinical capabilities1. 
 In an attempt to streamline, many large pharmaceutical companies are limiting the number of external
CRO vendors that can be contracted. This is particularly promising for those CROs that fill multiple niches in the discovery and manufacturing pipeline. In a recent estimate, the CRO industry alone was estimated to be $30 billion USD, and
“highly fragmented... relatively few of full scale and breadth of service”1. 

The full breadth of services offered at IPA have enabled many of our clients to consolidate CRO vendors for outsourcing. We provide our clients with services
ranging from antigen design, antibody discovery, lead selection, manufacturing, engineering and optimization. Upon advancing final, lead candidates, IPA is able to transfer valuable information for the technical process to third-party CDMO’s to
assist with pre-clinical and clinical manufacturing processes. ImmunoPrecise views the downstream pre-clinical and clinical manufacturing space as logical markets for
company expansion, given our high percentage of client retention, the ability to further consolidate client vendors, and the potential to continue to guide our clients closer to commercialization using the same project management teams, software and
processes already established. 

  
 5 

 

 
 IMMUNOPRECISE ANTIBODIES LTD. 

MANAGEMENT DISCUSSION AND ANALYSIS 
 FOR THE THREE
MONTHS ENDED JULY 31, 2020 
  
  

 The key players serving the therapeutic monoclonal antibodies market are Pfizer, GlaxoSmithKline, Novartis,
Merck & Co., Amgen, Abbott Laboratories, AstraZeneca, Eli Lilly and Company, Mylan, Daiichi Sankyo Company, Bayer, Bristol Myers Squibb Co., Johnson & Johnson Services, Biogen, Thermo Fisher Scientific, Sanofi Genzyme, F. Hoffmann-La Roche, and Novo Nordisk2. In 2016 alone, Novartis invested 9 billion USD and Pfizer invested 7.9 billion USD in R&D3. This is of little surprise given the global monoclonal antibody market was valued at USD 85.4 billion in 2015 and is expected to reach a value of USD 138.6 billion by 2024 2. 
 Ongoing, growing investments by pharma in R&D are expected to ramp up for antibodies given the
rising prevalence of cancer and other chronic diseases4. In oncology, antibodies are viewed as the mainstay, as people move away from other types of therapies such as small molecules5. In recent years, the success of key pipeline drugs in the
immuno-oncology space have been a key component of the record high capital market funding for the biotechnology sector1. 

ACQUISITION OF U-PROTEIN EXPRESS 

On August 22, 2017, the Company completed the acquisition of U-Protein Express BV
(“U-Protein”) whereby the Company has acquired all the issued and outstanding shares of U-Protein for €6,830,000 on terms as follows: 

 

	•	 €2,734,732 (CAD$4,062,607) was paid in cash on closing; 

 

	•	 3,030,503 common shares of the Company were issued on closing; and 

 

	•	 €2,047,634 in deferred payments over a three-year period. The deferred payments can be made in cash or
common shares of the Company at the election of U-Protein shareholders. 

 The transaction was
accounted for as a business combination, as the operations of U-Protein meet the definition of a business. As a result, transaction costs of $17,717 were expensed. The goodwill resulting from the allocation of
the purchase price to the total fair value of net assets represented the sales and growth potential of U-Protein. Goodwill recorded is allocated in its entirety to
U-Protein. 
 The first deferred payment of €682,545 (CAD$1,049,754) has been made in cash during the year
ended April 30, 2019, and the second deferred payment of €682,545 (CAD$1,007,435) has been made in cash during the year ended April 30, 2020. 

The fair value of the 3,030,503 common shares issued ($3,022,308) was determined based on the Canadian dollar equivalent of the consideration required of
€2,047,634 pursuant to the share purchase agreement. The Company has allocated the purchase price as follows: 
  

	1 	 Healthcare Insights Life Sciences, CRO Sector Fundamentals Remain Hot for M&A Consolidation,
October 3, 2019.  

	2 	 Monoclonal Antibodies (mAbs) Market Size Worth $138.6 Billion By 2024, Nov. 2016  

	3 	 Monoclonal Antibody Market 2019-2025 Growth, Key Players, Size, Demands and Forecasts, April, 2019

	4 	 Research Antibodies Market Size, Share & Trends Analysis Report By Product, By Type (Monoclonal,
Polyclonal), By Technology, By Source, By Application (Oncology, Neurobiology), By End-use, And Segment Forecasts, 2018 – 2025, March, 2018 

	5 	 GEN, Antibody Discovery Looks Over the Horizon, Feb. 7, 2019. 

  
 6 

 

 
 IMMUNOPRECISE ANTIBODIES LTD. 

MANAGEMENT DISCUSSION AND ANALYSIS 
 FOR THE THREE
MONTHS ENDED JULY 31, 2020 
  
  

					
	 	  	$	 
	 Cash
	  	 	4,062,607	 
	 3,030,503 common shares of the Company
	  	 	3,022,308	 
	 Fair value of deferred payments
	  	 	2,134,410	 
		  	  
	  
	 
	 Fair value of consideration
	  	 	9,219,325	 
		  	  
	  
	 
	 Cash
	  	 	797,276	 
	 Amounts receivable
	  	 	370,530	 
	 Unbilled revenue
	  	 	112,815	 
	 Inventory
	  	 	36,900	 
	 Investment
	  	 	90,404	 
	 Equipment, net of accumulated amortization
	  	 	216,161	 
	 Intellectual property (not deductible for tax purposes)
	  	 	4,064,000	 
	 Goodwill (not deductible for tax purposes)
	  	 	4,655,893	 
	 Accounts payable and accrued liabilities
	  	 	(269,657	) 
	 Income taxes payable
	  	 	(44,197	) 
	 Deferred income tax liability
	  	 	(810,800	) 
		  	  
	  
	 
		  	 	9,219,325	 
		  	  
	  
	 

 ACQUISITION OF IPA EUROPE AND IMMULEASE 

On April 5, 2018, the Company acquired all of the issued and outstanding shares of ImmunoPrecise Antibodies (Europe) B.V. (“IPA Europe”) and its
sister entity, Immulease B.V. (“Immulease”), for an aggregate purchase price of €7,000,000 on terms as follows: 
  

	•	 €2,500,000 (CAD$3,988,132) was paid in cash on closing; 

 

	•	 6,600,399 common shares of the Company were issued on closing; and 

 

	•	 €2,000,000 in deferred payments over a three-year period. The deferred payments were to be made in three
equal installments of cash and equity totaling €666,666 and prorated if the EBITDA of IPA Europe for the fiscal year preceding the date of payment is less than its average EBITDA over the previous two fiscal years. During the year ended
April 30, 2019, the Company and the seller entered into an Amendment, a Termination and Settlement Agreement whereby the deferred payments shall no longer be subject to an adjustment and will be paid in equal installments of cash and equity
totaling €666,666. 

 IPA Europe changed its name from ModiQuest Research B.V. in April 2019. 

The transaction was accounted for as a business combination, as the operations of IPA Europe and Immulease meet the definition of a business. As a result,
transaction costs of $36,821 were expensed. The goodwill resulting from the allocation of the purchase price to the total fair value of net assets represented the sales and growth potential of IPA Europe. Goodwill recorded is allocated in its
entirety to IPA Europe. 
 The first deferred payment of €666,666 (CAD$1,014,503), consisting of cash of €333,333 (CAD$507,000) and common shares
of the Company with a fair value of $507,503, has been made during the year ended April 30, 2019. The second deferred payment, consisting of cash of €335,555 (CAD$518,534) and common shares of the Company with a fair value of $511,405, has
been made during the three months ended July 31, 2020. 

  
 7 

 

 
 IMMUNOPRECISE ANTIBODIES LTD. 

MANAGEMENT DISCUSSION AND ANALYSIS 
 FOR THE THREE
MONTHS ENDED JULY 31, 2020 
  
  

 The fair value of the 6,600,399 common shares issued ($4,884,295) was determined to be $0.74 per share based
on the fair value of the Company’s shares immediately prior to the completion of the acquisition. The Company has allocated the purchase price as follows: 
  

					
	 	  	$	 
	 Cash
	  	 	3,988,132	 
	 6,600,399 common shares of the Company
	  	 	4,884,295	 
	 Fair value of deferred payments
	  	 	2,353,708	 
		  	  
	  
	 
	 Fair value of consideration
	  	 	11,226,135	 
		  	  
	  
	 
	 Cash
	  	 	270,339	 
	 Amounts receivable
	  	 	572,427	 
	 Unbilled revenue
	  	 	90,052	 
	 Inventory
	  	 	2,286,995	 
	 Equipment, net of accumulated amortization
	  	 	568,221	 
	 Software
	  	 	30,974	 
	 Intangible assets (not deductible for tax purposes)
	  	 	6,304,863	 
	 Goodwill (not deductible for tax purposes)
	  	 	3,640,671	 
	 Accounts payable and accrued liabilities
	  	 	(580,339	) 
	 Deferred revenue
	  	 	(22,897	) 
	 Loans
	  	 	(298,979	) 
	 Deferred income tax liability
	  	 	(1,636,192	) 
		  	  
	  
	 
		  	 	11,226,135	 
		  	  
	  
	 

 During fiscal year 2020, the Company reviewed the cost of the acquired phage libraries and identified the need to create an
additional human phage library. This resulted in bifurcating the cost of the phage library into the costs to develop the proprietary process to create a phage library and the cost of the phage library acquired (Inventory). Accordingly, a
reclassification was made between Inventory and Proprietary Processes of $1,815,395. 
 OVERALL PERFORMANCE 

The Company’s continued focus on identifying and onboarding new clients seeking the breadth and depth of the end-to-end services offered, combined with continued growth to core existing client business, led to increases in both volume and financial value of contracts. As a result, revenues of $3,764,977 were
achieved during the three months ended July 31, 2020 compared to revenues of $2,716,099 in 2019, a 39% increase in revenue for the period. 
 Revenue
outlook remains positive for the second quarter of the 2021 fiscal year. 
 Adjusted EBITDA for the three months ending July 31, 2020 was $932,716.
This is a significant improvement from the adjusted EBITDA of ($481,499) for the 2019 fiscal period. The improvement is a result of the increase in revenue and higher gross profit compared to the prior period. Adjusted EBITDA is a non-IFRS measure
which is fully defined on page eleven of this document. 
 In the 2021 fiscal year, the goal of the organization is to grow sales revenue and expand our
brand awareness. 
 This focus is consistent with the ‘leading with our scientists’ philosophy, which is resonating with our clients from both
diagnostic and, in particular, the therapeutic market segment. The Company is also expanding its commitment to research and development initiatives aimed at introducing new services through both internal development as well as through partnerships.
To achieve the best results from its investments, the Company continues to add key scientific and management personnel to its team. 

  
 8 

 

 
 IMMUNOPRECISE ANTIBODIES LTD. 

MANAGEMENT DISCUSSION AND ANALYSIS 
 FOR THE THREE
MONTHS ENDED JULY 31, 2020 
  
  

 To support management and the Board of Directors in exercising oversight, the Company has implemented
information systems for marketing and sales automation and customer relationship management, as well as accounting and financial reporting, resource planning and project management. Comprehensive operational and management reporting capabilities are
being implemented with a view to effectively support a geographically dispersed organization allowing managers access to company data globally. 
 With the
aid of a third-party HR consulting firm, significant effort was applied to strengthening and aligning the 
 Company’s human resources by: 

 

	 	•	 Stabilizing staffing for sales growth going forward: Remuneration and incentive systems have been
aligned with targeted revenue and gross profit performance, and operational roles and responsibilities have been focused on managing demand. 

  

	 	•	 Leadership and operational alignment: The Company has made changes and updated job descriptions,
compensation plans, and other reward and recognition systems, and is implementing career planning and development mechanisms and job performance and quality measures. 

Future growth will provide opportunities for company personnel to develop new skills and abilities to tackle eventual challenges in a growing company. 

RESULTS OF OPERATIONS 
 The Company achieved revenues of
$3,764,977 during the three months ended July 31, 2020, compared to revenues of $2,716,099 in 2019. This represents a 39% increase in revenue for the period. The increasing revenue trend is due to increases in both volume and financial values
of client contracts as a result of continued focus on expanding the breadth and depth of services offered, new client onboarding including top pharma companies, and growing its core existing client business. 

During the three months ended July 31, 2020, the Company achieved a gross profit of $2,410,326, compared to $1,376,406 in 2019. In percentage terms, the
Company’s gross profit increased to 64% in the three months ended 
 July 31, 2020 from 51% in 2019. The higher gross profit in the current fiscal
period was primarily a result of the Company implementing a new ERP system that tracks project costs in more detail than historical methods. 
 The Company
recorded a net loss of $549,318 during the three months ended July 31, 2020, compared to net loss of $2,012,198 for the three months ended July 31, 2019, primarily due to higher gross profit and an increase in Other Income as a result of
being awarded research grants.  
 Variances of note in the Company’s expenses include: 

 

	 	•	 Advertising and promotion fees of $33,306 in 2020 (2019 - $117,200) declined compared to 2019 as a result of
scientific conferences being postponed due to the pandemic and during 2019 the company incurred higher costs to support the Company’s initiatives focused on business development, marketing and branding programs. 

 

	 	•	 Amortization expense increased to $677,887 from $547,841 in 2019 due to the additional amortization of
intangible assets recorded, as a result of the reclassification made between Inventory and Proprietary Processes of $1,815,395. 

  

	 	•	 $148,959 of the management fees were attributed to accruing an estimate of profit-sharing to the former
shareholders of U-Protein, as part of the acquisition agreement. The profit-sharing payout is a three-year, annual obligation, with declining percentage of profit sharing. Beginning August 24, 2020, the
profit-sharing payout for U-Protein will cease and the Company will be under no further obligations to share profits with the former shareholders of U-Protein. An
accrual of estimated profit sharing was not made as of July 31, 2019. 

  
 9 

 

 
 IMMUNOPRECISE ANTIBODIES LTD. 

MANAGEMENT DISCUSSION AND ANALYSIS 
 FOR THE THREE
MONTHS ENDED JULY 31, 2020 
  
  

	 	•	 Office and general expenses decreased to $148,160 from $223,335 in 2019. The expenses were higher in 2019 as
the Company implemented new information systems. 

  

	 	•	 Research and development increased to $309,213 from $167,260 in 2019, due to the extensive R&D the Company
is undertaking on projects related to COVID-19. 

  

	 	•	 Salaries and benefits expense increased to $1,351,232 from $1,096,244 in 2019. Key leaders and technical
employees were added to the team during FY20 to aid in executing the company’s strategies. The increase in salaries and benefits is due to the fully staffed salaries and benefits in addition to routine salary adjustments and accrual of target
incentive compensation. 

  

	 	•	 The Company recorded a share-based payments expense of $97,273 (2019—$285,995) as a result of the vesting
of the stock options granted during the previous fiscal years versus more stock options vested during the three months ended July 31, 2019. The option plan is aimed to align staff to the future company growth plans. 

SUMMARY OF QUARTERLY RESULTS 
 The following table sets
out financial information for the past eight quarters: 
  

																	
	 	  	Three Months Ended ($)	 
	 	  	July 31,	 	  	April 30,	 	  	January 31,	 	  	October 31,	 
	 	  	2020	 	  	2020	 	  	2020	 	  	2019	 
	 Total revenue
	  	 	3,764,977	 	  	 	4,145,023	 	  	 	4,034,440	 	  	 	3,162,365	 
	 Net loss
	  	 	(549,318	) 	  	 	(945,846	) 	  	 	(625,837	) 	  	 	(1,363,545	) 
	 Basic and diluted loss per share*
	  	 	(0.01	) 	  	 	(0.01	) 	  	 	(0.01	) 	  	 	(0.02	) 
		
	 	  	Three Months Ended ($)	 
	 	  	July 31,	 	  	April 30,	 	  	January 31,	 	  	October 31,	 
	 	  	2019	 	  	2019	 	  	2019	 	  	2018	 
	 Total revenue
	  	 	2,716,099	 	  	 	2,641,109	 	  	 	2,695,583	 	  	 	2,716,791	 
	 Net (loss)
	  	 	(2,012,198	) 	  	 	(3,842,317	) 	  	 	(1,187,056	) 	  	 	(1,485,732	) 
	 Basic and diluted loss per share*
	  	 	(0.03	) 	  	 	(0.06	) 	  	 	(0.02	) 	  	 	(0.02	) 

  

	*	 The basic and fully diluted calculations result in the same value due to the anti-dilutive effect of
outstanding stock options and warrants. 

  
 10 

 

 
 IMMUNOPRECISE ANTIBODIES LTD. 

MANAGEMENT DISCUSSION AND ANALYSIS 
 FOR THE THREE
MONTHS ENDED JULY 31, 2020 
  
  

 NON-IFRS MEASURES 

The following are non-IFRS measures and investors are cautioned not to place undue reliance on them and are urged to read all IFRS accounting disclosures
present in the condensed interim consolidated financial statements and accompanying notes for the three months ended July 31, 2020. 
 The Company uses
certain non-IFRS financial measures as supplemental indicators of its financial and operating performance. These non-IFRS financial measures include adjusted operating EBITDA and adjusted operating expenses. The Company believes these supplementary
financial measures reflect the Company’s ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in its
business. These non-IFRS measures do not have any standardized meaning prescribed under IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. 

The Company defines adjusted operating EBITDA as operating earnings before interest, accretion, taxes, depreciation, amortization, share-based compensation,
foreign exchange gain/loss, and asset impairment charges. Adjusted operating EBITDA is presented on a basis consistent with the Company’s internal management reports. The Company discloses adjusted operating EBITDA to capture the profitability
of its business before the impact of items not considered in management’s evaluation of operating unit performance. 
 The Company defines adjusted
operating expenses as operating expenses before taxes, interest, share-based compensation, depreciation, amortization, accretion, foreign exchange loss (gain), and asset impairment charges. Adjusted operating expenses are presented on a basis
consistent with the Company’s internal management reports. The non-IFRS measures are reconciled to reported IFRS figures in the tables below: 
  

									
	 	  	July 31,	 	  	July 31,	 
	 	  	2020	 	  	2019	 
	 	  	$	 	  	$	 
	 Net loss
	  	 	(549,318	) 	  	 	(2,012,198	) 
	 Income taxes (recovery)
	  	 	181,007	 	  	 	(4,055	) 
	 Amortization and depreciation expense
	  	 	911,923	 	  	 	702,284	 
	 Accretion
	  	 	101,145	 	  	 	552,893	 
	 Foreign exchange loss (gain)
	  	 	20,256	 	  	 	(112,976	) 
	 Interest expense
	  	 	169,806	 	  	 	118,960	 
	 Interest and other income (expense)
	  	 	624	 	  	 	(12,402	) 
	 Share-based payments
	  	 	97,273	 	  	 	285,995	 
		  	  
	  
	 	  	  
	  
	 
	 Adjusted EBITDA
	  	 	932,716	 	  	 	(481,499	) 
		  	  
	  
	 	  	  
	  
	 
			
	 	  	July 31,	 	  	July 31,	 
	 	  	2020	 	  	2019	 
	 	  	$	 	  	$	 
	 Operating expenses
	  	 	(3,384,152	) 	  	 	(2,852,168	) 
	 Amortization and depreciation expense
	  	 	677,887	 	  	 	547,841	 
	 Foreign exchange loss (gain)
	  	 	20,256	 	  	 	(112,976	) 
	 Interest expense
	  	 	169,806	 	  	 	118,960	 
	 Share-based payments
	  	 	97,273	 	  	 	285,995	 
		  	  
	  
	 	  	  
	  
	 
	 Adjusted Operating Expenses
	  	 	(2,418,930	) 	  	 	(2,012,348	) 
		  	  
	  
	 	  	  
	  
	 

  
 11 

 

 
 IMMUNOPRECISE ANTIBODIES LTD. 

MANAGEMENT DISCUSSION AND ANALYSIS 
 FOR THE THREE
MONTHS ENDED JULY 31, 2020 
  
  

 FINANCING ACTIVITIES 

On September 26, 2019, the Company modified the terms of $2,750,000 debentures to extend the due date by 6 months to March 26, 2020, with the ability
to pay earlier with no penalty, and increased the interest rate to 12.5%. The remaining debentures of $125,000 were paid on maturity. 
 On March 26,
2020, the Company settled $700,000 of the $2,750,000 debentures plus accrued interest of $46,875 by issuing 1,244,792 common shares. The fair value of the 1,244,792 common shares issued was determined to be $858,906. The settlement resulted in a
loss of $112,031. $50,000 of the Debentures were paid on maturity. The maturity date of the remaining debentures of $2,000,000 was extended to September 26, 2020. The Company repaid the remaining balance of $2,000,000 plus interest during the
three months ended July 31, 2020. 
 On April 15, 2020, the Company was approved for a US$209,000 loan under the Payroll Protection Program
(“PPP”) administered by the U.S. Small Business Administration. The loan accrues interest at 1% per annum and is repayable in monthly installments of US$11,761 starting in November 2020 until April 2022. The PPP is a US$349 billion
loan program that originated from the U.S. Coronavirus Aid, Relief and Economic Security (CARES) Act. The PPP loan has a term of two years, is unsecured, and is guaranteed by the U.S. Small Business Administration. The loan will be forgiven if the
proceeds are used by the Company to cover payroll costs (including benefits), with up to 25% allowed for rent and utilities, during the eight-week period following the loan origination date. The Company expects to meet the requirements for full loan
forgiveness and will apply for lender forgiveness after the required September 30, 2020 federal and state employment related filings are complete. 

During the year ended April 30, 2020, the Company issued 55,000 common shares pursuant to exercise of stock options for total gross proceeds of $16,500.

 During the year ended April 30, 2020, the Company issued 680,971 common shares pursuant to exercise of warrants for total gross proceeds of
$476,679. 
 On May 1, 2020, the Company issued 664,163 common shares pursuant to the second deferred payment for the acquisition of IPA Europe. The
common shares were valued at $511,405. 
 On May 15, 2020, the Company closed a non-brokered private placement
financing by issuing 10% convertible debentures (“New Debentures”) for total proceeds of $2,592,000. On May 27, 2020, the Company issued an additional $35,000 of the 10% New Debentures. In total, the Company issued $2,627,000 of the
New Debentures. The New Debentures are unsecured, bear interest at a rate of 10% per year and payable at maturity. The maturity date is May 15, 2022 for $2,592,000 of the New Debentures and May 22, 2022 for $35,000 of the New Debentures.
The principal amount of the New Debentures may be convertible, at the option of the holder, into units of the Company at a conversion price of $0.85 per share. The Company may force convert the principal amount of the New Debentures at $0.85 per
share if the average closing price is equal to or greater than $1.50 for 20 trading days. The Company paid finders cash commissions totaling $82,580 and incurred legal and filing fees of $29,331. 

During the three months ended July 31, 2020, the Company issued 180,900 common shares pursuant to exercise of stock options for total gross proceeds of
$137,845. 
 During the three months ended July 31, 2020, the Company issued 3,305,500 common shares pursuant to exercise of warrants and finder’s
warrants for total gross proceeds of $3,513,275. 

  
 12 

 

 
 IMMUNOPRECISE ANTIBODIES LTD. 

MANAGEMENT DISCUSSION AND ANALYSIS 
 FOR THE THREE
MONTHS ENDED JULY 31, 2020 
  
  

 LIQUIDITY AND CAPITAL RESOURCES 

The Company’s objectives when managing capital are to ensure sufficient liquidity for operations and adequate funding for growth and capital expenditures
while maintaining an efficient balance between debt and equity. The capital structure of the Company consists of shareholders’ equity. 
 The Company
adjusts to its capital structure upon approval from its Board of Directors, considering economic conditions and the Company’s working capital requirements. There were no changes in the Company’s approach to capital management during the
year. The Company is not subject to any externally imposed capital requirements. 
 As at July 31, 2020, the Company held cash of $6,062,177 (April 30,
2020 – $2,605,706) and had working capital of $5,396,295 (April 30, 2020 – deficiency $230,325). During the three months ended July 31, 2020, the cash provided by operating activities was $408,384. As part of the investing activities,
the Company made equipment purchases of $10,566, incurred internally generated development costs of $21,049, and made a deferred acquisition payment of $518,534. As part of the financing activities, the Company received $3,651,120 from exercise of
stock options and warrants, received convertible debenture proceeds net of transaction costs of $2,201,821, offset by lease repayments of $267,103, loan repayments of $15,753 and debenture repayments of $2,000,000. 

The Company’s condensed interim consolidated financial statements have been prepared based on accounting principles applicable to a going concern. This
assumes the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its obligations in the normal course of operations. The Company has incurred operating losses since inception, including
$549,318 for the three months ended July 31, 2020 and has accumulated a deficit of $23,027,970 as at July 31, 2020. The Company may need to raise additional funds in order to continue as a going concern and there can be no assurances that
sufficient funding, including adequate financing, will be available. The ability of the Company to arrange additional financing in the future depends in part, on the prevailing capital market conditions and profitability of its operations. 

In March 2020, there was a global pandemic outbreak of COVID-19. The actual and threatened spread of the virus
globally has had a material adverse effect on the global economy and specifically, the regional economies in which the Company operates. The pandemic could result in delays in the course of business and could have a negative impact on the
Company’s ability to raise new capital. It is not possible for the Company to predict the duration or magnitude of the adverse results of the outbreak and its effects on the Company’s business or results of operations at this time. These
material uncertainties may cast significant doubt on the Company’s ability to continue as a going concern. Accordingly, the consolidated financial statements do not give effect to adjustments that would be necessary should the Company be unable
to continue as a going concern and therefore be required to realize its assets and liquidate its liabilities, contingent obligations and commitments other than in the normal course of business and at amounts different from those in the consolidated
financial statements. 
 As at July 31, 2020, the Company does not have any commitments for capital expenditures. 

CAPITAL EXPENDITURES 
 The Company made equipment
purchases of $10,566 during the three months ended July 31, 2020 (2019 - $70,894). During the three months ended July 31, 2020, the Company also incurred internally generated development costs of $21,049 (2019 - $10,621). 

  
 13 

 

 
 IMMUNOPRECISE ANTIBODIES LTD. 

MANAGEMENT DISCUSSION AND ANALYSIS 
 FOR THE THREE
MONTHS ENDED JULY 31, 2020 
  
  

 RELATED PARTY TRANSACTIONS 

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company. Key
management consists of Dr. Jennifer Bath, President and CEO; Lisa Helbling, CFO; Dr. Stefan Lang, CBO; Dr. Yasmina Abdiche, CSO; and Former Employees: Natasha Tsai, CFO; Charles Wheelock, CTO; Reginald Beniac, Chief Operating Officer;
Oren Beske, President of ImmunoPrecise Antibodies (USA) Ltd.; Martin Hessing, Director of U-Protein; Jos Raats, President and CEO of IPA Europe; and Directors of the Company. During the three months ended
July 31, 2020 and 2019, the compensation for key management is as follows: 
  

									
	 	  	2020	 	  	2019	 
	 	  	$	 	  	$	 
	 Management fees(1) 
	  	 	15,737	 	  	 	45,148	 
	 Salaries and other short-term benefits(2)

	  	 	603,895	 	  	 	485,845	 
	 Severance(3) 
	  	 	62,768	 	  	 	—  	 
	 Share-based payments
	  	 	90,701	 	  	 	264,882	 
		  	  
	  
	 	  	  
	  
	 
		  	 	773,101	 	  	 	795,875	 
		  	  
	  
	 	  	  
	  
	 

  

	(1) 	 The charge includes management fees paid to Dr. Martin Hessing, a former Director of U-Protein. 

	(2) 	 The charge includes salaries and benefits paid to current key management and former management that includes
Charles Wheelock. 

	(3) 	 The charge includes severance paid to Charles Wheelock. 

At July 31, 2020, included in accounts payable and accrued liabilities is $590,197 (April 30, 2020—$412,188) due to related parties. 

During the year ended April, 30, 2020, a company controlled by Martin Hessing, a former Director of U-Protein, sold
certain equipment to U-Protein for a cash consideration of €25,000. 
 These transactions are in the normal
course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties, unless otherwise noted. 

  
 14 

 

 
 IMMUNOPRECISE ANTIBODIES LTD. 

MANAGEMENT DISCUSSION AND ANALYSIS 
 FOR THE THREE
MONTHS ENDED JULY 31, 2020 
  
  

 OUTSTANDING SHARE DATA 

The Company’s outstanding share information as at September 28, 2020 is as follows: 

 

													
	 Security
	  	Number	 	 	Exercise Price	 	  	Expiry date	 
	 Issued and outstanding common shares
	  	 	79,976,725	 	 	 	NA	 	  	 	NA	 
	 Common shares to be issued
	  	 	2,328,646	(1) 	 	 	NA	 	  	 	NA	 
	 Stock options
	  	 	200,000	 	 	$	1.00	 	  	 	October 1, 2021	 
	 Stock options
	  	 	230,000	 	 	$	0.30	 	  	 	December 20, 2021	 
	 Stock options
	  	 	872,500	 	 	$	1.01	 	  	 	September 18, 2022	 
	 Stock options
	  	 	250,000	 	 	$	0.65	 	  	 	January 3, 2023	 
	 Stock options
	  	 	700,000	 	 	$	0.47	 	  	 	February 7, 2023	 
	 Stock options
	  	 	50,000	 	 	$	1.01	 	  	 	March 3, 2023	 
	 Stock Options
	  	 	250,000	 	 	$	1.50	 	  	 	August 13, 2023	 
	 Stock options
	  	 	95,000	 	 	$	0.95	 	  	 	September 24, 2023	 
	 Stock options
	  	 	100,000	 	 	$	0.82	 	  	 	November 7, 2023	 
	 Stock options
	  	 	1,250,000	 	 	$	1.00	 	  	 	December 31, 2023	 
	 Stock options
	  	 	300,000	 	 	$	0.76	 	  	 	January 7, 2024	 
	 Stock options
	  	 	15,000	 	 	$	1.00	 	  	 	January 11, 2024	 
	 Stock options
	  	 	250,000	 	 	$	0.76	 	  	 	April 1, 2024	 
	 Stock options
	  	 	250,000	 	 	$	0.475	 	  	 	October 1, 2024	 
	 Stock options
	  	 	150,000	 	 	$	0.50	 	  	 	October 3, 2024	 
	 Stock options
	  	 	1,350,000	 	 	$	1.70	 	  	 	September 1, 2025	 
	 Warrants
	  	 	1,038,000	 	 	$	1.25	 	  	 	October 25, 2020	 
	 Warrants
	  	 	5,310,971	 	 	$	0.70	 	  	 	March 26, 2022	 
	 Total
	  	 	94,966,842	 	 				  			

  

	(1) 	 These relate to 2,328,646 common shares to be issued pursuant to exercise of warrants and in process by the
transfer agent. 

 OFF-BALANCE SHEET ARRANGEMENTS 

The Company does not utilize off-balance sheet transactions. 

SUBSEQUENT EVENTS 
 Subsequent to July 31, 2020 and
on August 13, 2020, the Company issued 250,000 stock options with an exercise price of $1.50 that vest 25% every three months with an expiration date of August 13, 2023. 

Subsequent to July 31, 2020 and on September 1, 2020, the Company granted 1,350,000 stock options at a price of $1.70 that vest 33.3% every six
months with an expiration date of September 1, 2025. 
 CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS 

The preparation of the consolidated financial statements in conformity with IFRS required estimates and judgments that affect the amounts reported in the
financial statements. Actual results could differ from these estimates and judgments. Estimates are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the year in which the estimate is revised. Significant areas
requiring the use of estimates and judgments are as follows: 
 Functional currency 

The Company has used judgment in determining the currency of the primary economic environment in which the entity operates. 

  
 15 

 

 
 IMMUNOPRECISE ANTIBODIES LTD. 

MANAGEMENT DISCUSSION AND ANALYSIS 
 FOR THE THREE
MONTHS ENDED JULY 31, 2020 
  
  

 Amounts receivable 

The Company monitors the financial stability of its customers and the environment in which they operate to make estimates regarding the likelihood that the
individual trade receivable balances will be paid. Credit risks for outstanding customer receivables are regularly assessed and allowances are recorded for estimated losses, if required. 

Equipment 
 The Company has used estimates in the
determination of the expected useful lives of equipment and leasehold improvements. 
 Revenue recognition 

The percentage-of-completion method requires the use of estimates to determine
the stage of completion which is used to determine the recorded amount of revenue, unbilled revenue and deferred revenue on uncompleted contracts. The determination of anticipated revenues includes the contractually agreed revenue and may also
involve estimates of future revenues if such additional revenues can be reliably estimated and it is considered probable that they will be recovered. The determination of anticipated costs for completing a contract is based on estimates that can be
affected by a variety of factors, including the cost of materials, labor, and sub-contractors. The determination of estimates is based on the Company’s business practices as well as its historical experience. 

Impairments 
 For the purposes of assessing impairment,
assets are grouped at the lowest levels for which there are separately identifiable cash flows (“cash generating units” or “CGU”s). Each asset or CGU is evaluated every reporting period to determine whether there are any
indicators of impairment. If any such indicators exist, which is often judgment-based, a formal estimate of recoverable amount is performed, and an impairment charge is recognized to the extent that the carrying amount exceeds the recoverable
amount. The recoverable amount of an asset or CGU of assets is measured at the higher of fair value less costs of disposal or value in use. These determinations and their individual assumptions require that management make a decision based on the
best available information at each reporting period. The estimates and assumptions are subject to risk and uncertainty; hence, there is the possibility that changes in circumstances will alter these projections, which may impact the recoverable
amount of the assets. In such circumstances, some or all the carrying value of the assets may be further impaired or the impairment charge reversed with the impact recorded in profit or loss. 

The Company performs a goodwill impairment test annually and when circumstances indicate that the carrying value may not be recoverable. For the purposes of
impairment testing, goodwill acquired through business combinations has been allocated to two different CGUs. The recoverable amount of each CGU was based on value in use, determined by discounting the future cash flows to be generated from the
continuing use of the CGU. The cash flows were projected over a five-year period based on past experience and actual operating results. 
 The Company
performed its annual goodwill impairment test in April 2020 and no impairment was indicated for the period tested. The values assigned to the key assumptions represented management’s assessment of future trends in the industry and were based on
historical data from both internal and external sources. Weighted average costs of capital of 16.33% and 12.26%, respectively, was used in the assessments of the two CGUs. 

Determination of segments 
 An operating segment is a
component of the Company that engages in business activities from which it may earn revenues and incur expenses. All operating segments’ results are reviewed by the Company’s management in order to make decisions regarding the allocation
of resources to the segment. Segment results include items directly attributable to a segment as those that can be allocated on a reasonable basis. 

  
 16 

 

 
 IMMUNOPRECISE ANTIBODIES LTD. 

MANAGEMENT DISCUSSION AND ANALYSIS 
 FOR THE THREE
MONTHS ENDED JULY 31, 2020 
  
  

 As the Company provides antibody production and related services in one distinct segment. 

Life of intangible assets 
 Intangible assets are
amortized based on estimated useful life less their estimated residual value. Significant assumptions are involved in the determination of useful life and residual values and no assurance can be given that actual useful lives and residual values
will not differ significantly from current assumptions. Actual useful life and residual values may vary depending on a number of factors including internal technical evaluation, attributes of the assets and experience with similar assets. Changes to
these estimates may affect the carrying value of assets, net income (loss) and comprehensive income (loss) in future periods. 
 Purchase price
allocation 
 The acquisition of U-Protein on August 22, 2017 and the acquisition of IPA Europe and
Immulease on April 5, 2018 were accounted for as business combinations at fair value in accordance with IFRS 3, Business Combinations. The acquired assets and assumed liabilities were adjusted to their fair values assigned through
completion of a purchase price allocation, as described below. 
 The purchase price allocation process resulting from a business combination requires
management to estimate the fair value of identifiable assets acquired including intangible assets and liabilities assumed including the deferred acquisition payment obligations. The Company uses valuation techniques, which are generally based on
forecasted future net cash flows discounted to present value and relies on work performed by third-party valuation specialists. These valuations are closely linked to the assumptions used by management on the future performance of the related assets
and the discount rates applied. 
 ADOPTION OF NEW ACCOUNTING STANDARDS 

The Company has adopted the following new standards, along with any consequential amendments, effective May 1, 2019. These changes were made in accordance
with the applicable transitional provisions. 
 The Company adopted all the requirements of IFRS 16, Leases (“IFRS 16”) as of May 1,
2019. IFRS 16 replaces IAS 17, Leases (“IAS 17”). IFRS 16 provides a single lessee accounting model, requiring lessees to recognize assets and liabilities for all leases unless the lease term is 12 months or less or the underlying
asset has a low value. The Company has adopted IFRS 16 using the modified retrospective application method, where the 2019 comparatives are not restated and a cumulative catch up adjustment is recorded on May 1, 2019 for any differences
identified, including adjustments to opening deficit balance. 
 The Company analyzed its contracts to identify whether they contain a lease arrangement for
the application of IFRS 16. The following is the Company’s new accounting policy for leases under IFRS 16: 
 At inception of a contract, the Company
assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. 

Leases of right-of-use assets are recognized at the lease commencement date at
the present value of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined, and otherwise at the Company’s incremental
borrowing rate. At the commencement date, a right-of-use asset is measured at cost, which is comprised of the initial amount of the lease liability adjusted for any
lease payments made at or before the commencement date, plus any decommissioning and restoration costs, less any lease incentives received. 

  
 17 

 

 
 IMMUNOPRECISE ANTIBODIES LTD. 

MANAGEMENT DISCUSSION AND ANALYSIS 
 FOR THE THREE
MONTHS ENDED JULY 31, 2020 
  
  

 Each lease payment is allocated between repayment of the lease principal and interest. Interest on the lease
liability in each period during the lease term is allocated to produce a constant periodic rate of interest on the remaining balance of the lease liability. Except where the costs are included in the carrying amount of another asset, the Company
recognizes in profit or loss (a) the interest on a lease liability and (b) variable lease payments not included in the measurement of a lease liability in the period in which the event or condition that triggers those payments occurs. The
Company subsequently measures the right-of-use asset at cost less any accumulated depreciation and any accumulated impairment losses; and adjusted for any remeasurement
of the lease liability. Right-of-use assets are depreciated over the shorter of the asset’s useful life and the lease term, except where the lease contains a
bargain purchase option a right-of-use asset is depreciated over the asset’s useful life. 

On the date of transition, the Company recorded a right-of-use asset of
$1,668,533 related to the office rent in property and equipment, and the lease obligation of $1,723,277 was recorded as at May 1, 2019, discounted using the Company’s incremental borrowing rate of 8%, and measured at an amount equal to the
lease obligation as if IFRS 16 had been applied since the commencement date. The net difference between right-of-use assets and lease liabilities on the date of
transition was recognized as a deficit adjustment of $54,744 on May 1, 2019. 
 DISCLOSURE CONTROLS AND PROCEDURES 

In connection with National Instrument 52-109 (Certificate of Disclosure in Issuer’s Annual and Interim Filings)
(“NI 52-109”), the Chief Executive Officer and Chief Financial Officer of the Company have filed a Venture Issuer Basic Certificate with respect to the financial information contained in the
unaudited condensed interim consolidated financial statements for the three months ended July 31, 2020 and this accompanying MD&A. 
 In contrast
to the full certificate under NI 52-109, the Venture Issuer Basic Certificate does not include representations relating to the establishment and maintenance of disclosure controls and procedures and internal
control over financial reporting, as defined in NI 52-109. For further information the reader should refer to the Venture Issuer Basic Certificates filed by the Company with the Annual Filings on SEDAR at
www.sedar.com. 
 FINANCIAL INSTRUMENTS 
 The
Company’s financial instruments include cash, amounts receivable, restricted cash, investment, accounts payable and accrued liabilities, debentures, convertible debentures, loans payable, leases and deferred acquisition payments. The fair value
of investment is determined based on “Level 1” inputs which consist of quoted prices in active markets for identical assets. As at July 31, 2020, the Company believes that the carrying values of cash, amounts receivable,
restricted cash, accounts payable and accrued liabilities, deferred payments, debentures, convertible debentures, and loans payable approximate their fair values because of their nature and relatively short maturity dates or durations. 

RISKS AND UNCERTAINTIES 
 Research and Development and
Product Development 
 IPA is a life science company that makes customized antibodies and is engaged in the research and product development of new
processes, procedures and innovative approaches to the antibody production and new antibodies. The Company has been engaged in such research and development activities for over 20 years and has had significant success. Continued investment in
retaining key scientific staff as well as an ongoing commitment in research and development activities will continue to be a cornerstone in the Company’s development of new services, processes, and competitive advantages such as Rapid Prime, B
cell Select, DeepDisplay and its methods for the production of human antibodies. The Company realizes that such research and product development activities endeavour, but cannot assure, the production of new and innovative processes, procedures or
innovative approaches to antibody production or new antibodies. 

  
 18 

 

 
 IMMUNOPRECISE ANTIBODIES LTD. 

MANAGEMENT DISCUSSION AND ANALYSIS 
 FOR THE THREE
MONTHS ENDED JULY 31, 2020 
  
  

 Custom Products 

The Company is reliant on the development, marketing and sale of its current custom monoclonal and polyclonal antibodies. If it does not achieve sufficient
market acceptance of its expansion of its commercialization of its products and services, it will be difficult for the Company to achieve consistent profitability. The Company’s marketing and sales approach and external sales personnel
continues to introduce a steady stream of new customers. 
 Obsolescence 

Maintaining a competitive position requires constant growth, development and strategic marketing and planning. If the Company is unable to maintain a
technological advantage, its ability to grow its business will be adversely affected and its products may become obsolete compared with other technologies. To mitigate this, the Company is making investments in new methods, technology and
facilities.  
 Competition 
 IPA may face
significant competition in selling its products and services. Many competitors may have substantial marketing, financial, development and personnel resources. To remain competitive, the Company believes that it must effectively and economically
provide: (i) products and services that satisfy customer demands, (ii) superior customer service, (iii) high levels of quality and reliability, and (iv) dependable and efficient distribution networks. Increased competition may
require the Company to reduce prices or increase spending on sales and marketing and customer support, which may have a material adverse effect on its financial condition and results of operations. Any decrease in the quality of IPA’s products
or level of service to customers or any occurrence of a price war among the Company’s competitors may adversely affect the business and results of operations. 

Customer reach, service and on-time delivery will continue to be a hallmark of the Company’s ability to compete
with other market players. Further, the acquisitions translate to spreading the IPA footprint on two continents. In addition, the Company has deployed a sales team tasked with continually sourcing and providing market intelligence as part of its
activities. 
 Intellectual Property Protection 

Although IPA is developing its patent portfolio, IPA’s intellectual property is still protected primarily through trade secrets and copyright protection.
The Company takes steps to document and protect its trade secrets and authorship of works protectable by copyright. However, there is no guarantee that such steps protect against the disclosure of confidential information, rights of employees, or
that legal actions would provide sufficient remedy for any breach. Additionally, IPA’s trade secrets might otherwise become known or be independently developed by competitors. If the Company’s internal information and knowledge cannot be
protected, the business might be adversely affected. 
 Failure of Laboratory Facilities 

The Company’s operations could suffer as a result of a failure of its laboratory facilities. The Company’s business is dependent upon a laboratory
infrastructure to produce products and services. These systems and operations are vulnerable to damage and interruption from fires, earthquakes, telecommunications failures, and other events. Any such errors or inadequacies in the software that may
be encountered could adversely affect operations, and such errors may be expensive or difficult to correct in a timely manner. 
 The production of
monoclonal and polyclonal antibodies requires state of the art laboratory facilities and animal care standards and the success of these laboratory services depends on the recruitment and retention of highly qualified technical staff to maintain the
level and quality standards that customers expect of the Company’s products and services. There is no assurance that the Company will be able to expand and operate such state-of-the-art laboratory services and recruit and retain qualified staff. 

  
 19 

 

 
 IMMUNOPRECISE ANTIBODIES LTD. 

MANAGEMENT DISCUSSION AND ANALYSIS 
 FOR THE THREE
MONTHS ENDED JULY 31, 2020 
  
  

 Financial and Regulatory Risks 

The Company is currently subject to financial and regulatory risks. The financial risk is derived from the uncertainty pertaining to the Company’s ability
to raise capital to continue operations. Regulatory risks include the possible delays in getting regulatory approval for the transactions that the Board of Directors believe to be in the best interest of the Company and include increased fees for
filings and the introduction of ever more complex reporting requirements, the cost of which the Company must meet in order to maintain its exchange listing. 

Pandemic Risk 
 A new Coronavirus, known as SARS-CoV-2 and causing a disease called COVID-19, which has proved to be highly contagious, emerged in Wuhan, China at the end of 2019.
Since the future course and duration of the COVID-19 outbreak are unknown, the Company is currently unable to determine whether the outbreak will have a negative effect on the Company’s results in the
Second quarter of 2021 and beyond. There has been minimal impact on results through July 31, 2020, and the Company has not experienced negative impact on client sales or the supply chain. The Company’s sales, operations and financial
performance could suffer given a potential rapidly spreading virus. Internally, the virus may infect its employees resulting in operating at lower productivity levels or even a complete laboratory shutdown. The Company’s business is dependent
on its laboratories to produce its products and services which if not operating will impact the financial performance of the company and its ability to meet its obligations. The Company has diversified geographic locations with the ability to
perform similar services at other sites. In addition, certain roles have the ability to work remotely and the Company has business interruption insurance which may aid in the recovery of lost profits. External factors may also contribute to this
risk, such as the impact of a pandemic on the Company’s clients and suppliers.  
 FURTHER INFORMATION: 

Additional information relating to the Company can be found on SEDAR at www.sedar.com. 

  
 20

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