TIDMTILS
RNS Number : 9690M
Tiziana Life Sciences PLC
24 September 2021
Tiziana Life Sciences plc
("Tiziana" or "the Company")
Interim Results for the Six Months Ended 30 June 2021
Advancing pipeline of next generation therapeutics and
diagnostics for oncology and immune diseases of high unmet need
London, 24 September 2021 - Tiziana Life Sciences plc
("Tiziana", LSE: TILS, NASDAQ: TLSA), a biotechnology company a
biotechnology company focused on innovative therapeutics for
oncology, inflammation, and infectious diseases today announces its
interim results for the six months ended 30 June 2021.
Highlights during the period:
CLINICAL PROGRAMMES
Foralumab
TZLS-401
-- Announced an update on further analysis of lymphocyte subsets
from blood samples from a Phase 1 study with nasally administered
Foralumab in healthy volunteers. Results exhibiting statistically
significant immunomodulatory effects on CD8 cytotoxic T-lymphocytes
and other inflammatory biomarkers were observed. Systemic levels of
Foralumab were below the lower quantitation limit of 8 ng/mL
suggesting that nasally administered Foralumab appears to exert its
effects via nasal epithelium utilizing local and lymphatic immune
systems directly . These data support other clinical and
pre-clinical studies showing that this route of administration is
capable of inducing site-targeted immunomodulation and
anti-inflammatory effects. Furthermore these pharmacodynamic data
point to a clinical dose range that Tiziana intends to test in
further clinical development among MS patients.
-- Announced positive data from the exploratory clinical study
in Brazil investigating nasally administered Foralumab, its
proprietary anti-CD3 human monoclonal antibody, either alone or in
combination with orally administered dexamethasone ("Dexa") in
COVID-19 patients. The clinical study was completed in
collaboration with scientific teams at the Harvard Medical School
(Boston, USA), and INTRIALS, a full-service Latin American CRO
based in São Paulo, Brazil . T he objectives of the trial were to
assess safety of the treatment and to evaluate if progression of
the diseases is delayed with nasally administered 100mcg/day
Foralumab (50mcg/nostril). This study enrolled 39 patients
randomized in three cohorts: cohort 1, control with no treatment
(n=16); cohort 2; nasally administered Foralumab plus 3 days of
priming with orally administered 6 mg Dexamethasone (n=11) and
cohort 3; nasally administered Foralumab (n=12). The Foralumab
treatment regimen was once a day dosing for 10 consecutive days
There were no significant differences between cohort 2 and 3. All
treatments were well-tolerated. There were no grade 3 or 4 severe
adverse events ("SAEs") in any of the cohorts. The CT scans of the
lungs showed the improvement was approximately double that shown in
patients treated with Foralumab as compared to those in the control
group. The results of the study were published in the peer-reviewed
journal, Frontiers in Immunology entitled "Nasal Administration of
Anti-CD3 Monoclonal Antibody (Foralumab) Reduces Lung In ammation
and Blood In ammatory Biomarkers in Mild to Moderate COVID-19
Patients: A Pilot Study" in August 2021.
-- Signed an agreement with FHI CRO to conduct a follow-up,
"proof of concept" Phase 2 study in hospitalized patients with
severe COVID-19 and lung inflammation that is planned to begin in
Q4 2021. Foralumab will be delivered intranasally using a metered
dose delivery device.
-- Announced that the first patient with secondary progressive
multiple sclerosis (SPMS) was dosed with nasally administered
Foralumab at the Brigham and Women's Hospital (BWH), Harvard
Medical School, Boston, MA. Nasal Foralumab 50 mcg (25 mcg/nostril)
was administered in 3-week cycles, with 3 times/week dosing for the
first 2 weeks followed by 1 week of rest period. This first-ever
clinical study in SPMS patients, under an Individual Patient
Expanded Access IND, will continue for six months to evaluate
routine safety, tolerability, and neurological behaviors. The study
will also examine microglial activation, by positron emission
tomography ( PET), immunological and neurodegenerative markers to
assess clinical responses following the treatment regimen.
Anti IL-6R mAb
TZLS-501, formerly NI-1201
-- Working with Sciarra Laboratories to evaluate two hand-held
nebulizer devices for use in the study and characterizing
physical/performance characteristics. Once a device has been
selected, a few candidate formulations of anti-IL6R mAb, from
formulation development studies at STC Biologics, will be
manufactured at small scale and evaluated using the devices.
-- Engaged ITR Laboratories in Canada to complete inhalation
safety toxicology studies in Cynomolgous monkeys using the
purified, characterized anti-IL6R mAb test item. Results from the
study will be used to establish dosing fora Phase 1 study in
healthy volunteers. Additional parenteral administration safety
toxicology studies are in progress at ITR Laboratories to support
clinical studies for treatment of autoimmune and inflammatory
diseases.
Milciclib
TZLS-201
-- A nnounced that it had executed an agreement with Takanawa
Japan K.K, Pharma Team, (Takanawa) for a strategic business
development plan to Identify a clinical partner in Japan and other
Asian countries for further clinical development of Milciclib for
treatment in advanced hepatocellular carcinoma (HCC) patients. HCC
is the most common type of liver cancer and affects approximately
200,000 people per year.
Intellectual Property
-- As of September 2021, the Company has a total of 306 granted
patents, 281 foreign and 25 US patents.
New appointments
-- Appointed Dr Neil Graham MBBS, MD, MPH as Chief Medical
Officer, Dr Thoma Adams Ph.D. as Head of Drug Development and an
executive director and r. Kevin Schutz, PharmD, as Vice-President
of Regulatory Affairs.
Highlights post period end:
-- On September 2, 2021, Tiziana and Precision Biosciences
announced an exclusive license agreement to explore Tiziana's
foralumab as an agent to induce tolerance of allogeneic CAR T cells
to potentially improve the clinical outcome of CAR T cell therapy.
Precision's approach to manufacturing produces CAR T cells that are
virtually CD3-negative. Foralumab will be used as a lymphodepletion
or tolerizing agent, either alone or in combination with other
co-stimulatory molecules, to improve the long-term survival of CAR
T cells in cancer treatment.
-- Tiziana has formally commenced its strategic plan to change
its corporate structure by establishing Tiziana Life Sciences Ltd,
a Bermuda-incorporated company, as the ultimate parent company of
the of the Tiziana Group. The reorganisation will be achieved by a
scheme of arrangement under Part 26 of the Companies Act 2006.
FIINANCIAL
-- For the six months to 30 June 2020 the consolidated Group
made a loss of GBP12.59m (six months to 30 June 2020: GBP3.9m).
-- The Group ended the period with GBP38.6m cash as at 30 June
2021 (31 December 2020: GBP48.2m).
-- Research and development (R&D) expenses increased to
GBP12.6m compared to GBP3.9m in the first half of 2020. The
increase is primarily expenses related to the advancement of our
proprietary programs, TZLS-401 and TZLS-501.
-- The Company cancelled the admission of its Ordinary Shares to
trading on AIM and admitted its shares to trading on the main
market for listed securities (of London Stock Exchange plc in
Jnaiary 2021.
The Company continues to carefully manage its working capital
position and continues the process, as referred to below, to
evaluate opportunities to raise further funds through the issue of
addtional equity capital.
Contacts:
Tiziana Life Sciences plc
Gabriele Cerrone, Chairman and founder +44 (0)20 7495 2379
About Tiziana Life Sciences
Tiziana Life Sciences plc is a dual listed (NASDAQ:TLSA, UK LSE:
TILS) biotechnology company that focuses on the discovery and
development of novel molecules to treat human diseases in oncology,
inflammation and infectious diseases. In addition to Milciclib, the
Company will be shortly initiating Phase 2 studies with orally
administered Foralumab for Crohn's Disease and nasally administered
Foralumab for progressive multiple sclerosis. Foralumab is the only
fully human anti-CD3 monoclonal antibody ("mAb") in clinical
development in the world. This Phase 2 compound has potential
application in a wide range of autoimmune and inflammatory
diseases, such as Crohn's Disease, multiple sclerosis, type-1
diabetes ("T1D"), inflammatory bowel disease ("IBD"), psoriasis and
rheumatoid arthritis, where modulation of a T-cell response is
desirable. The Company is accelerating development of
anti-Interleukin 6 receptor ("IL6R") mAb, a fully human monoclonal
antibody for treatment of IL6-induced inflammation, especially for
treatment of COVID-19 patients.
EXECUTIVE CHAIRMAN'S STATEMENT
I am pleased to report on the Group's financial results for the
six months ended 30 June 2021.
We have made strong progress advancing our pipeline in the first
half of the year.
We are set to start a Phase 2 clinical trial in Brazil, ,
treating hospitalized, severe COVID-19 patients with intranasal
foralumab, a fully human anti-CD3 monoclonal antibody. This study,
conducted in collaboration with FHI Clinical, will begin enrolling
patients in November 2021. This randomized, placebo-controlled,
double-blind, proof-of-concept study is designed to expand on the
preliminary findings of safety, tolerability and efficacy of
intranasal administration of foralumab observed in mild to moderate
non-hospitalized COVID-19 patient trial that was completed earlier
this year.
Based on positive results from treatment of an Expanded Access
(EA) progressive MS patient with intranasal foralumab for three
months at Brigham and Women's Hospital, Boston, MA, we plan to
enroll additional EA patients. We are also in discussions with VU
Medical Center, Amsterdam to conduct a Phase 1b, double blind,
randomized, placebo-controlled study of intranasal foralumab in
primary and secondary progressive MS subjects.
Upon successful completion of a Phase I trial in healthy
volunteers using our novel oral enteric-coated capsule formulation
of Foralumab, Tiziana is collaborating with Parexel CRO to conduct
a Phase 1b clinical trial in moderate to severe Crohn's disease
patients. to prepare and has submitted an IND to FDA. The
multicenter trial will enroll subjects at US and EU clinical sites
in Q4 2021.
We are preparing a preIND meeting briefing package to submit to
FDA for its anti-Interleukin-6-Receptor (TZLS-501), a fully human
monoclonal antibody, for the treatment of Interstitial lung disease
associated with systemic sclerosis (SSc-ILD). We are planning tol
submit an IND by the end of 2021. If approved, we anticipate to
initiate a Phase 1a, single ascending dose study to evaluate the
safety and pharmacokinetics of TZLS-501 in healthy volunteers in Q1
2022.
Looking ahead, Tiziana is confident that it is well positioned
to advance these programs to their next respective value inflection
points.
Gabriele Cerrone
Executive Chairman
Consolidated Statement of Comprehensive Income
for the six months ended 30 June 2021
6 months 6 months 12 months
to 30 to 30 June To 31 Dec
June
2021 2020 2020
GBP'000 GBP'000 GBP'000
(Unaudited) (Unaudited)
------------------- ---------------- ----------------
Research and development (4,355) (760) (4,667)
Operating expenses (8,214) (3,169) (8,724)
Realisation bonus - - (10,290)
Impairment of asset - - (217)
Gain on disposal of Intellectual
Property - - 2,074
Operating loss (12,569) (3,929) (21,824)
Financial income - - -
Finance expense (18) (5) (243)
Operating loss before taxation (12,587) (3,934) (22,067)
Taxation - - 1,719
Operating loss after taxation (12,587) (3,934) (20,348)
Net loss for the period attributable
to equity owners (12,587) (3,934) (20,348)
Other comprehensive income
for the period (6) 23 186
Total comprehensive loss
attributable to equity owners (12,593) (3,911) (20,162)
Basic and diluted loss per
share (pence)
Basic and diluted loss per
share on continuing operations (7.4p) (2.6p) (12.0p)
=================== ================ ================
Total basic and diluted loss
per share (7.4p) (2.6p) (12.0p)
=================== ================ ================
Consolidated Statement of Financial Position
as at 30 June 2021
30 June 30 June 31 Dec
2021 2020 2020
GBP'000 GBP'000 GBP'000
(unaudited) (unaudited)
------------ ------------ ---------
Assets
Non-Current assets:
Property, plant and equipment 15 5 1
Purchase of Act D 97 - 97
Finance lease receivable - - -
Right-of-use assets 406 308 262
Other non-current assets - 217 -
Total Non-current assets 518 530 360
Currents assets:
Prepayments 804 393 276
Finance lease recievable 43 236 111
Related Party Receivable 337 610 270
Other Receivable 372 1,010 300
Taxation receivable 1,250 513 2,232
Cash and cash equivalents 38,605 7,200 48,217
------------ ------------ ---------
Total current assets 41,411 9,962 51,406
Total assets 41,929 10,492 51,766
============ ============ =========
Equity and liabilities
Shareholder's equity:
Called up share capital 5,838 4,992 5,838
Share premium 81,227 38,390 81,227
Share based payment reserve 8,484 4,806 6,319
Shares to be issued reserve 474 1,265 475
Capital reduction reserve 31,957 31,183 31,958
Shares to be issued 10,290 - 10,290
Other reserve (28,286) (28,286) (28,286)
Translation reserve 208 (78) 201
Retained earnings (74,901) (47,330) (62,313
Equity attributed to the
owners of the Company 35,291 4,942 45,709
Current liabilities:
Trade and other payables 4,964 4,597 4,095
Lease liabilities 168 322 195
Related party payable 1,142 323 1,493
Other liabilities 60 - 62
------------ ------------ ---------
6,334 5,242 5,845
Long term liabilities:
Lease Liabilities - non-current 304 308 212
Total Liabilities 6,638 5,550 6,057
Total Equity and Liabilities 41,929 10,492 51,766
============ ============ =========
Consolidated Statement of Cash Flows
for the 6 months ended 30 June 2021
6 months 6months to 12 months
to to
30 June 30 June 31 December
2021 2020 2020
GBP'000 GBP'000 GBP'000
(unaudited) (unaudited
Cash flows from operating activities
Total comprehensive loss for
the period before tax (12,587) (3,934) (22,067)
Convertible loan interest - 215 216
Loss on disposal of right of - - -
use asset
Amorisation of right of use asset - 21 -
Shares issued in lieu of fees - - 360
Share based payment - options 2,164 979 3,740
Share based payment - warrants - - 20
Options forfeited/cancelled in
the year - - (26)
Bonus to be settled in equity - - 10,290
Issue of share capital (Loan - (190) -
conversion)
Cancellation of options - (23) -
Share based payment - warrants - 310 -
Net (increase) / decrease in
operating assets
-Trade / other receivables 801 (1,894) (364)
Net increase / (decrease) in
operating liabilities
-Trade / other liabilities (886) (445) 135
Depreciation 2 2 4
Depreciation of right of use
asset - - 67
Impairment of SharDNA - - 217
Gain from disposalof intellectual
property - - (2,074)
(Gain)/Loss on foreign exchange 6 (105) 185
Finance Lease 66 - -
Loss on disposal of right of 54 - -
use asset
Net cash used in operating activities (10,380) (5,068) (9,297)
Cash inflow from taxation 981 - -
Net cash used in operating activities (9,399) (5,064) (11,806)
------------ ----------- ------------
Cash flow from financing activities
Proceeds from issuance of ordinary
shares - 10,899 57,283
Proceeds from issuance of warrants - 1,940 2,682
Proceeds from issuance of options - 91 727
Proceeds from issuance of convertible
loan notes - - 120
Cost of fundraising - (824) (3,136)
Repayment of lease liabilities - 7 (216)
Right of use asset (198) - -
------------ ----------- ------------
Net cash generated from financing
activities (198) 12,113 57,460
Cash flows from investing activites
Acquisition of property, plant
and equipment (15) (2) (2)
Acquisition of intangible asset - - (97)
Net cash outflow from investing
activities (15) (2) (99)
Net increase / (decrease) in
cash and cash equivalents (9,612) 7,047 48,064
Cash and cash equivalents at
beginning of period 48,217 153 153
Cash and cash equivalents at
end of period 38,605 7,200 48,217
============ =========== ============
Consolidated Statement of Changes in Equity -
for the six months ending 30 June 2021 and 30 June 2020
Share Warrants CLN Reserve Capital Shares
Based Reduction to be Translation
Share Share Payment Reserve issued Reserve Other Retained Total
(Unaudited) Capital Premium Reserve Reserve Reserve Earnings Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
January
2020 5,838 81,227 6,319 474 - 31,957 10,290 202 (28,286) (62,314) 45,708
Issue of share - - - - - - - - - - -
capital
(Fundraise & ATM)
Cost of - - - - - - - - - - -
fundraising
Issue of share - - - - - - - - - - -
capital
(Warrants)
Issue of share - - - - - - - - - - -
capital
(Loan conversion)
Issue of share - - - - - - - - - - -
capital
(Options)
Converitble loan - - - - - - - - - - -
note
interest
Share based
payments
(options) - - 2,164 - - - - - - - 2,164
Share based - - - - - - - - - - -
payments
(warrants)
Forfeiture of - - - - - - - - - - -
options
Total transactions
with
owners - - 2,164 - - - - - - - 2,164
Comprehensive
income
Loss for the
period - - - - - - - - - (12,587) (12,587)
Foreign currency - - - - - - - - - - -
translation
Loss on disposal - - - - - - - - - - -
of asset
OCI-FX - - - - - - - 6 - - 6
Total
comprehensive
income - - - - - - - 6 - (12,587) (12,581)
Balance at 30 June
2021 5,838 81,227 8,484 474 - 31,957 10,290 208 (28,286) (74,901) 35,291
--------- --------- -------- --------- --------------- ---------- -------- ------------- --------- ---------- ---------
Consolidated Statement of Changes in Equity -
for the six months ending 30 June 2021 and 30 June 2020
Share Warrants CLN Reserve
Based Capital Translation
Share Share Payment Reduction Reserve Other Retained Total
(Unaudited) Capital Premium Reserve Reserve Reserve Earnings Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
January 2020 4,099 25,194 3,850 1,812 1,099 31,183 15 (28,286) (43,146) (4,180)
Issue of share
capital
(Fundraise
& ATM) 598 10,301 - - - - - - - 10,899
Cost of
fundraising - (824) (824)
Issue of share
capital
(Warrants) 150 2,503 - - - - - - - 2,653
Issue of share
capital (Loan
conversion) 132 1,137 - - (1,459) - - - - (190)
Issue of share
capital
(Options) 13 78 - - - - - - - 90
Converitble
loan note
interest - - - - 216 - - - (216) -
Share based
payments
(options) - - 979 - - - - - - 979
Share based
payments
(warrants) - - - (473) 70 - - - - (402)
Forfeiture of
options - - (22) - - - - - - (22)
Total
transactions
with owners 893 13,196 956 (473) (1,173) - - - (216) 13,183
Comprehensive
income
Loss for the
period - - - - - - - - (3,934) (3,934)
Foreign
currency
translation - - - - - - (105) - - (105)
Loss on
disposal of
asset - - - - - - - - (34) (34)
OCI-FX - - - - - - 12 - - 12
Total
comprehensive
income - - - - - - (93) - (4,184) (4,061)
Balance at 30
June 2020 4,992 38,390 4,806 1,339 (74) 31,183 (78) (28,286) (47,330) 4,942
--------- --------- ---------------------- ---------------------- ---------------------- ---------------- ---------------- ------------------------- ---------------- -----------------------
Consolidated Statement of Changes in Equity -
for the year ending 31 Decmber 2020
Share Share Capital Share Share Convertible Other Shares Translation Retained Total
Capital Premium Reduction Based Based Loan Note Reserve to be Reserve Earnings Equity
Reserve Payment Payment Reserve issued
Reserve Reserve Reserve
(options) (warrants)
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance as at 1
January
2020 4,099 25,194 31,183 3,850 1,812 1,099 (28,286) - 15 (43,146) (4,180)
Issue of share capital
(Fundraise & ATM) 1,319 56,964 - - - - - - - - 58,283
Issue of share capital
(Warrants) 191 2,491 - - - - - - - - 2,682
Issue of share capital
(in lieu of fees) 9 351 - - - - - - - - 360
Issue of share capital
(exercise of options) 88 640 - - - - - - - - 728
Issue of share capital
(Loan conversion) 132 1,716 - - - (1,848) - - - - -
Cost of fundraise - (3,136) - - - - - - - - (3,136)
Convertible loan notes
issued - - - - - 120 - - - - 120
Convertible loan note
interest - - - - - 216 - - - - 216
Share based payments
charge (warrants) - - - 259 (240) - - - - 19
Share based payment
charge (options) - - - 3,740 - - - - - - 3,740
Options
forfeited/cancelled
in the year - - (26) - - - - - - (26)
Exercise of options - 64 (1,245) - - - - - 1,181 -
Exercise of warrants - 943 (1,596) 653 - - - - -
Shares issued in lieu
of cash for
realisation
bonus - - - - - - - 10,290 - - 10,290
Reduction in share
capital - (4,000) 4,000 - - - - - - - -
Capital distribution - (3,225) - - - - - - - (3,225)
Total 1,739 56,033 775 2,469 (1,337) (1,099) - 10,290 - 1,181 70,051
Comprehensive loss
(Items that will be
reclassified to the
Statement of Income
in future periods)
Exchange differences
on translating
foreign
operations - - - - - - - - 186 - 186
Net loss for the year - - - - - - - - - (20,348) (20,348)
Total Comprehensive
loss for the year - - - - - - - 186 (20,348) (20,162)
-------- -------- ---------- ---------- ----------- ------------ --------- -------- ------------ --------- ---------
Balance as at 31
December
2020 5,838 81,227 31,958 6,319 475 - (28,286) 10,290 201 (62,313) 45,709
-------- -------- ---------- ---------- ----------- ------------ --------- -------- ------------ --------- ---------
Notes to the Interim Financial Statements
for the six month period to 30 June 2021
1. GENERAL INFORMATION
Tiziana Life Sciences PLC is a public limited company
incorporated in the United Kingdom under the Companies Act and
quoted on the main market of the London Stock Exchange (LSE: TILS).
and on the NASDAQ Capital Market (NDAQ: TLSA). The principal
activities of the Company and its subsidiaries (the Group) are that
of a clinical stage biotechnology company focussed on targeted
drugs to treat diseases in oncology and immunology.
These financial statements are presented in thousands of pounds
sterling (GBP'000) which is the functional currency of the primary
economic environment in which the Company operates.
2. ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of
these consolidated interim financial statements are set out below.
These policies have been applied consistently to all the years
presented unless otherwise stated.
Basis of preparation
These interim consolidated financial statements of the Group and
Company have been prepared in accordance with international
accounting standards in conformity with the requirements of the
Companies Act 2006. These accounts have been prepared under the
historical cost convention.
As permitted by section 408 of the Companies Act 2006, a
separate profit and loss account for the Company has not been
presented in these financial statements.
Going Concern
The Group incurred losses during the year and has net assets at
the year end.
The Group is in the early stages of developing its business
focusing on the discovery and development of novel molecules that
treat human disease in oncology and immunology. The directors
expect the company to incur further losses and to require
significant capital expenditure in continuing to develop clinical
stage development therapeutic candidates in both oncology and
immunology. The company has successfully funded clinical trials to
date and is in the process of securing additional investment for
purposes of continuing to fund their clinical trials moving
forward.
The directors have prepared cash flow projections that include
the costs associated with the continued clinical trials and
additional investment to fund that operation. On the basis of those
projections, the directors conclude that the company will be able
to meet its liabilities as they fall due for the foreseeable
future, and therefore that it is appropriate to prepare the
financial statements under the going concern basis of
preparation.
However, until and unless the Group secures sufficient
investment to fund their clinical trials, there is a material
uncertainty about the Group's ability to continue as a going
concern, and therefore about the applicability of the going concern
basis of preparation. The financial statements do not include the
adjustments that would be required if the going concern basis of
preparation was considered inappropriate.
New and Revised Standards
Standards in effect in 2021
IFRS in issue but not applied in the current financial
statements
The directors do not expect that the adoption of new IFRS
Standards, Interpretations and Amendments that have been issued but
are not yet effective will have a material impact on the financial
statements of the Group in future periods.
Several IFRS and IFRIC interpretations are also currently in
issue which are not relevant for the Group's activities and which
have not therefore been adopted in preparing these financial
statements.
Basis of consolidation
Subsidiary undertakings are all entities over which the Group
has the power to govern the financial and operating policies of the
subsidiary and therefore exercises control. The existence and
effect of both current voting rights and potential voting rights
that are currently exercisable or convertible are considered when
assessing whether control of an entity is exercised. Subsidiaries
are consolidated from the date at which the Group obtains control
and are de-consolidated from the date at which control ceases.
Business combination
The consolidated position of the Group is as a result of the
reverse acquisition of Alexander David Investments plc by Tiziana
Pharma Ltd and the subsequent listing of the Company as Tiziana
Life Sciences Plc on 24 April 2014. Tiziana Pharma Limited was
incorporated on 4 November 2013 and prepared its first set of
financial statements to 31 December 2014. Therefore, the parent and
subsidiary had the same reporting date but Tiziana Pharma Limited
had a long period of account. No adjustment was made in the
consolidated financial statements for the difference in length of
reporting period because the only transaction in Tiziana Pharma
Limited at 31 December 2013 was the issue of ordinary share capital
of GBP1.
Inter-company transactions, balances and unrealised gains on
transactions between group companies are eliminated upon
consolidation. Unrealised losses are also eliminated. Accounting
policies of subsidiaries have been changed where necessary to
ensure consistency with the policies adopted by the Group.
Segment reporting
Operating segments are reported in a manner consistent with the
internal reporting provided to the Board. The Board allocates
resources to and assess the performance of the segments. The Board
considers there to be only one operating segment being the research
and development of biotechnological and pharmaceutical
products.
Taxation
The tax expense for the year represents the total of current
taxation and deferred taxation. The charge in respect of current
taxation is based on the estimated taxable profit for the year.
Taxable profit for the year is based on the profit as shown in the
income statement, as adjusted for items of income or expenditure
which are not deductible or chargeable for tax purposes. The
current tax liability for the year is calculated using tax rates
which have either been enacted or substantively enacted at the
balance sheet date.
Deferred tax is provided in full, using the liability method, on
temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the consolidated
financial statements. Deferred tax is determined using tax rates
(and laws) that have been enacted or substantially enacted by the
balance sheet date and expected to apply when the related deferred
tax is realized, or the deferred liability is settled. Deferred tax
assets are recognized to the extent that it is probable that the
future taxable profit will be available against which the temporary
differences can be utilized.
Foreign currency translation
Foreign currency transactions are translated using the rate of
exchange applicable at the date of the transaction. Foreign
exchange gains and losses resulting from the settlement of such
transactions and from the re-translation at the year end of
monetary assets and liabilities denominated in foreign currencies
are recognised in the income statement.
On consolidation, the assets and liabilities of foreign
subsidiaries are translated into Pound Sterling at the rate of
exchange prevailing at the reporting date and their statements of
comprehensive income are translated at exchange rates prevailing at
the dates of the transactions. The exchange differences arising on
translation for consolidation are recognised in other comprehensive
income. On disposal of a foreign subsidiary, the component of other
comprehensive income relating to that particular foreign subsidiary
is recognised in profit or loss.
License fees
Payments related to the acquisition of rights to a product or
technology are capitalised as intangible assets if it is probable
that future economic benefits from the asset will flow to the
entity and the cost of the asset can be reliably measured.
Payments made which provide the right to perform research are
carefully evaluated to determine whether such payments are to fund
research or acquire an asset. Licence fees expenses are recognised
as incurred.
Research and development
All on-going research and development expenditure is currently
expensed in the period in which it is incurred. Due to the
regulatory environment inherent in the development of the Group's
products, the criteria for development costs to be recognised as an
asset, as set out in IAS 38 'Intangible Assets', are not met until
a product has been granted regulatory approval and it is probable
that future economic benefit will flow to the Group. The Group
currently has no qualifying expenditure.
Financial instruments
The Group classifies a financial instrument, or its component
parts, as a financial liability, a financial asset or an
equity instrument in accordance with the substance of the
contractual arrangement and the definitions of a
financial liability, a financial asset and an equity
instrument.
The Group evaluates the terms of the financial instrument to
determine whether it contains an asset, a liability or
an equity component. Such components shall be classified
separately as financial assets, financial liabilities or
equity instruments.
A financial instrument is any contract that gives rise to a
financial asset of one entity and a financial liability or
equity instrument of another entity.
(a) Financial assets, initial recognition and measurement and subsequent measurement
All financial assets not recorded at fair value through profit
or loss, such as receivables and deposits, are
recognized initially at fair value plus transaction costs.
Financial assets carried at fair value through profit or loss are
initially recognized at fair value, and transaction costs are
expensed in the income statement.
The measurement of financial assets depends on their
classification. Financial assets such as receivables and deposits
are subsequently measured at amortized cost using the effective
interest method, less loss allowance.
The Group does not hold any financial assets at fair value
through profit or loss or fair value through other
comprehensive income.
(b) Financial liabilities, initial recognition and measurement and subsequent measurement
Financial liabilities are classified as measured at amortized
cost or FVTPL.
A financial liability is classified as at FVTPL if it is a
derivative. Financial liabilities at FVTPL are measured at fair
value and net gains and losses, including any interest expense,
are recognized in profit or loss.
Other financial liabilities are subsequently measured at
amortized cost using the effective interest method.
Interest expense and foreign exchange gains and losses are
recognized in profit or loss. Any gain or loss on
derecognition is also recognized in profit or loss.
The Group's financial liabilities include trade and other
payables.
Warrants
Warrants are issued by the Group in return for services and as
part of a financing transaction. Warrants issued in return for
services. Warrants issued in return for services fall within scope
of IFRS 2. The financial liability component is measured at fair
value and charged to the Consolidated Statement of Income. There is
no remeasurement of fair value. Warrants issued as part of a
financing transaction. Warrants issued as part of a financing
transaction fall outside the scope of IFRS 2. These are classified
as equity instruments because a fixed amount of cash is exchanged
for a fixed amount of equity. The fair value is recognised within
equity and is not remeasured .
Investments
Investments are held as non-current assets and comprise
investments in subsidiary undertakings and are stated at cost less
provision for any impairment.
Share capital
Ordinary shares of the Company are classified as equity.
Property, plant and equipment
(i) Recognition and measurement
Items of property, plant and equipment are measured at cost less
accumulated depreciation and accumulated impairment losses. Costs
include expenditures that are directly attributable to the
acquisition of the asset. Purchased software that is integral to
the functionality of the related equipment is capitalised as part
of that equipment.
When parts of an item of property, plant and equipment have
different useful lives, they are accounted for as separate items
(major components) of property, plant and equipment.
Gains and losses on disposal of an item of property, plant and
equipment are determined by comparing the proceeds from disposal
with the carrying amount of property, plant and equipment, and are
recognised in profit or loss.
(ii) Depreciation
Depreciation is calculated on the depreciable amount, which is
the cost of an asset, or other amount substituted for cost, less
its residual value.
Depreciation is recognised in profit or loss on a straight-line
basis over the estimated useful life of each part of an item of
property, plant and equipment. Leased assets are depreciated over
the shorter of the lease term and their useful lives unless it is
reasonably certain that the Company will obtain ownership by the
end of the lease term.
The estimated useful lives for the current period and the
comparative period are as follows.
Fixtures and fittings 5 years
IT and equipment 3 years
Depreciation methods, useful lives and residual values are
reviewed at each reporting date. Depreciation is allocated to the
operating expenses line of the income statement.
Impairment
Impairment of financial assets measured at amortised cost
At each reporting date the Group recognises a loss allowance for
expected credit losses on financial assets measured at amortised
cost.
In establishing the appropriate amount of loss allowance to be
recognised, the Group applies either the general approach or the
simplified approach, depending on the nature of the underlying
group of financial assets.
General approach
The general approach is applied to the impairment assessment of
refundable lease deposits and other refundable lease contributions,
restricted cash and cash and cash equivalents.
Under the general approach the Group recognises a loss allowance
for a financial asset at an amount equal to the 12-month expected
credit losses, unless the credit risk on the financial asset has
increased significantly since initial recognition, in which case a
loss allowance is recognised at an amount equal to the lifetime
expected credit losses.
Simplified approach
The simplified approach is applied to the impairment assessment
of trade receivables.
Under the simplified approach the Group always recognises a loss
allowance for a financial asset at an amount equal to the lifetime
expected credit losses.
Non-financial assets are tested for impairment whenever events
or changes in circumstances indicate that the carrying amount may
not be recoverable.
Non-financial assets are impaired when its carrying amount
exceed its recoverable amount. The recoverable amount is measured
as the higher of fair value less cost of disposal and value in use.
The value in use is calculated as being net projected cash flows
based on financial forecasts discounted back to present value.
Leases
All leases are accounted for by recognising a right-of-use asset
and a lease liability except for:
-- Leases of low value assets; and
-- Leases with a duration of 12 months or less.
The Group has leases for its offices. Each lease is reflected on
the balance sheet as a right-of-use asset and a lease liability.
The Group does not have any short-term leases or leases of low
value assets. Variable lease payments which do not depend on an
index or a rate (such as lease payments based on a percentage of
Group sales) are excluded from the initial measurement of the lease
liability and asset. The Group classifies its right-ofuse assets in
a consistent manner to its property, plant and equipment (see Note
13).
For leases over office buildings and factory premises the Group
must keep those properties in a good state of repair and return the
properties in their original condition at the end of the lease.
Measurement and recognition of leases as a lessee
At lease commencement date, the Group recognises a right-of-use
asset and a lease liability in its consolidated statement of
financial position. The right-of-use asset is measured at cost,
which is made up of the initial measurement of the lease liability,
any initial direct costs incurred by the Group, an estimate of any
costs to dismantle and remove the asset at the end of the lease,
and any lease payments made in advance of the lease commencement
date (net of any incentives received).
The Group depreciates the right-of-use asset on a straight-line
basis from the lease commencement date to the earlier of the end of
the useful life of the right-of-use asset or the end of the lease
term. The Group also assesses the right-of-use asset for impairment
when such indicators exist.
At the commencement date, the Group measures the lease liability
at the present value of the lease payments unpaid at that date,
discounted using the Group's incremental borrowing rate because as
the lease contracts are negotiated with third parties it is not
possible to determine the interest rate that is implicit in the
lease. The incremental borrowing rate is the estimated rate that
the Group would have to pay to borrow the same amount over a
similar term, and with similar security to obtain an asset of
equivalent value. This rate is adjusted should the lessee entity
have a different risk profile to that of the Group.
Lease payments included in the measurement of the lease
liability are made up of fixed payments (including in substance
fixed), variable payments based on an index or rate, amounts
expected to be payable under a residual value guarantee and
payments arising from options reasonably certain to be
exercised.
Subsequent to initial measurement, the liability will be reduced
by lease payments that are allocated between repayments of
principal and finance costs. The finance cost is the amount that
produces a constant periodic rate of interest on the remaining
balance of the lease liability.
The Group as a lessor
As a lessor the Group classifies its leases as either operating
or finance leases. A lease is classified as a finance lease if it
transfers substantially all the risks and rewards incidental to
ownership of the underlying asset and classified as an operating
lease if it does not.
Fair Value Measurement
Management have assessed the categorisation of the fair value
measurements using the IFRS 13 fair value hierarchy. Categorisation
within the hierarchy has been determined on the basis of the lowest
level of input that is significant to the fair value measurement of
the relevant asset as follows;
Level 1 - valued using quoted prices in active markets for
identical assets
Level 2 - valued by reference to valuation techniques using
observable inputs other than quoted prices included within Level
1;
Level 3 - valued by reference to valuation techniques using
inputs that are not based on observable market data.
Share based payments
The calculation of the fair value of equity-settled share based
awards and the resulting charge to the statement of comprehensive
income requires assumptions to be made regarding future events and
market conditions. These assumptions include the future volatility
of the Company's share price. These assumptions are then applied to
a recognised valuation model in order to calculate the fair value
of the awards.
Where employees, directors or advisers are rewarded using share
based payments, the fair value of the employees', directors' or
advisers' services are determined by reference to the fair value of
the share options/warrants awarded. Their value is appraised at the
date of grant and excludes the impact of any nonmarket vesting
conditions (for example, profitability and sales growth targets).
Warrants issued in association with the issue of Convertible Loan
Notes are also considered as share based payments and a share based
payment charge is calculated for these too.
In accordance with IFRS 2, a charge is made to the statement of
comprehensive income for all share-based payments including share
options based upon the fair value of the instrument used. A
corresponding credit is made to a share based payment reserve -
options, in the case of options/warrants awarded to employees,
directors, advisers and other consultants.
If vesting periods or other vesting conditions apply, the
expense is allocated over the vesting period, based on the best
available estimate of the number of share options/warrants expected
to vest. Non market vesting conditions are included in assumptions
about the number of options / warrants that are expected to become
exercisable.
Estimates are subsequently revised, if there is any indication
that the number of share options/warrants expected to vest differs
from previous estimates. No adjustment is made to the expense or
share issue cost recognised in prior periods if fewer share options
ultimately are exercised than originally estimated.
Upon exercise of share options/warrants, the proceeds received
are allocated to share capital with any excess being recorded as
share premium.
Where share options are cancelled, this is treated as an
acceleration of the vesting period of the options. The amount that
otherwise would have been recognised for services received over the
remainder of the vesting period is recognised immediately within
the Statement of Comprehensive Income.
All goods and services received in exchange for the grant of any
share based payment are measured at their fair value.
Other non-current assets
Other non- current assets are currently measured at cost less
accumulated impairment. The asset is not yet being amortised since
it is not yet in the condition necessary for it to be capable of
operating in the manner intended by management.
Convertible loan notes
Where there is no option to repay in cash or the Company has the
choice of settlement, and the interest rate is fixed
The Group considers these to be convertible equity instruments
and records the principal of the loan note as an equity in a
Convertible loan note reserve. The accrued interest on the
principal amount, for which there is no obligation to settle in
cash, is also recorded in the Convertible loan note reserve. Upon
redemption of the instrument and the issue of share capital, the
amount is reclassified from the convertible loan note reserve to
share capital and share premium.
Where the above conditions are not met
The Group considers these to be convertible debt instruments and
records the principal of the loan note as a debt liability in the
liabilities section of the statement of financial position. The
accrued interest on the principal amount is recorded in the income
statement and as an increase in the debt liability. Upon redemption
of the instrument and the issue of share capital, the amount is
reclassified from the debt liability to share capital and share
premium.
Under IAS 32 the liability and equity components of convertible
loan notes must be presented separately on the statement of
financial position. The Group has examined the terms of each issue
of convertible loan notes and determined their accounting treatment
accordingly. Convertible loan notes are treated differently
depending upon a number of factors.
3. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of financial information in accordance with
generally accepted accounting practice, in the case of the Group
being International Financial Reporting Standards as adopted by the
European Union, requires the directors to make estimates and
judgements that affect the reported amount of assets, liabilities,
income and expenditure and the disclosures made in the financial
statements. Such estimates and judgements must be continually
evaluated based on historical experience and other factors,
including expectations of future events.
The following are considered to be critical accounting
estimates:
Share-based payments
The Group accounts for share-based payment transactions for
employees in accordance with IFRS 2 Share-based Payment, which
requires the measurement of the cost of employee services received
in exchange for the options on our ordinary shares, based on the
fair value of the award on the grant date.
The Directors selected the Black-Scholes-Merton option pricing
model as the most appropriate method for determining the estimated
fair value of our share-based awards without market conditions. For
performance-based options that include vesting conditions relating
to the market performance of our ordinary shares, a Monte Carlo
pricing model was used in order to reflect the valuation impact of
price hurdles that have to be met as conditions to vesting.
The resulting cost of an equity incentive award is recognised as
expense over the requisite service period of the award, which is
usually the vesting period. Compensation expense is recognised over
the vesting period using the straight-line method and classified in
the consolidated statements of comprehensive income.
The assumptions used for estimating fair value for share-based
payment transactions are disclosed in note 27 to our consolidated
financial statements.
The following are considered to be critical accounting
judgments:
Income taxes
Deferred tax assets are recognised for unused tax losses to the
extent that it is probable that taxable profit will be available
against which the losses can be utilised. Significant management
judgment is required to determine the amount of deferred tax assets
that can be recognised based upon the likely timing and the level
of future taxable profits together with future tax planning
strategies.
Research and development costs
Research and development costs are charged to expense as
incurred and are typically made up of clinical and preclinical
activities, drug development and manufacturing costs, and
third-party service fees, including for clinical research
organizations and investigative sites. When entering into
agreements with third parties which provide the rights to conduct
research into specific biological processes the Group accounts for
these agreements as an expense if the agreements are 'milestone' in
nature and relate to the Group's own research and development
costs. Such agreements involve periodic payments and are evaluated
as representing payments made to fund research.
Leases
IFRS 16 defines the lease term as the non-cancellable period of
a lease together with the options to extend or terminate a lease,
if the lessee were reasonably certain to exercise that option. This
will take into account the length of time remaining before the
option is exercisable, current trading, future trading forecasts as
to the ongoing profitability of the organisation and the level and
type of planned future capital investment. The judgement is
reassessed at each reporting period. A reassessment of the
remaining life of the lease could result in a recalculation of the
lease liability and a material adjustment to the associated
balances.
4. OPERATING LOSS
The Group's operating loss for the year is stated after charging
the following:
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2021 2020 2021
(Unaudited) (Unaudited) (Unaudited)
GBP'000 GBP'000 GBP'000
License Fees - - (550)
Realisation Bonus - - (10,290)
Depreciation of Property, Plant
and (2) (2) (4)
Depreciation (Right-of-use asset) (54) (33) (66)
Foreign exchange losses (2,709) (30) (186)
------------ ------------ --------------
(2,765) (65) (11,096)
============ ============ ==============
5. Earnings per share
Basic earnings per share is calculated by dividing the loss
attributable to equity holders of the Group by the weighted average
number of ordinary shares in issue during the year.
6 months 6 months 12 months
to to to
30 June 30 June 31 Dec
2021 2020 2020
(unaudited) (unaudited)
------------ ------------ ------------
Total comprehensive loss for
the period (GBP'000) (12,594) (3,911) (20,162)
Basic and diluted weighted average
number of shares 150,224,119 150,224,119 169,065,390
Basic and diluted loss per share
- pence (7.4) (2.6) (12.0)
As the Group is reporting a loss from continuing operations for
the period then, in accordance with IAS 33, the share options are
not considered dilutive because the exercise of the share options
would have an anti-dilutive effect. The basic and diluted earnings
per share as presented on the face of the Statement of
comprehensive income are therefore identical. All earnings per
share figures presented above arise from continuing and total
operations and therefore no earnings per share for discontinued
operations are presented.
6. PROPERTY, PLANT AND EQUIPMENT
Details of the Groups property, plant and equipment are as
follows:
Furniture IT equipment Total
and fixtures
GBP'000 GBP'000 GBP'000
Cost
At 1 January 2021 24 6 30
Additions 4 11 15
Disposals - - -
At 30 June 2021 28 17 45
Depreciation
At 1 January 2021 (23) (6) (29)
Charge in period - (2) (2)
At 30 June 2021 (23) (8) (31)
Net book value as at 30 June
2021 5 7 14
============== ============= ========
Net book value as at 30 June
2020 2 3 5
============== ============= ========
Net book value as at 31 December
2020 1 - 1
============== ============= ========
7. Share based payments
Options
The Company operates share-based payment arrangements to
remunerate directors and key employees in the form of a share
option scheme. The exercise price of the option is normally equal
to the market price of an ordinary share in the Company at the date
of grant.
June 2021 June 2020
Options ('000) Weighted Options ('000) Weighted
Average exercise Average exercise
price (pence) price (pence)
Outstanding at
1 January 17,024 49 16,379 86
Granted 4,750 136 2,370 35
Forfeited (50) (160)
Exercised (420) (23)
Cancelled - -
Outstanding at
30 June 21,774 108 18,279 59
=============== ================== =============== ==================
Exercisable at
31 December 6,249 41 5,521 32
=============== ================== =============== ==================
During the year to 30 June 2021, zero options were exercised. No
options were exercised in the year to 31 December 2020.
The total outstanding fair value charge of the share option
instruments is deemed to be approximately GBP9,992k (2020:
GBP5,161k).
Share options outstanding at the end of June 2021 have the
following expiry dates and exercise prices:
Grant Date Expiry Date Exercise Price Share Options
as at 30 June
2021 ('000)
26 June 2014 26 June 2024 GBP0.35 1,831
30 April 2018 30 April 2028 GBP0.8175 1,300
6 May 2020 5 May 2028 GBP0.35 12,393
23 July 2020 26 July 2030 GBP1.575 1,000
25 August 2020 24 August 2030 GBP1.475 500
2 February 2021 2 February 2025 GBP1.02 1,250
2 February 2021 2 February 2025 GBP1.49 3,500
---------------
Total 21,774
Fair value of options granted
The Directors have used the Black-Scholes option pricing model
to estimate the fair value of most of the options granted during
the year to June 30, 2021 applying the assumptions below.
Historical volatility is based on the historical volatility of
the Company itself.
The Company has not paid any dividends on common stock since its
inception and does not anticipate paying dividends on its common
stock in the foreseeable future.
The Company has estimated a forfeiture rate of zero.
The model inputs for options granted during the year to 30 June
2021 valued under the Black Scholes Valuation model included:
2 February 2 February
Grant date share price 1.59 1.59
Exercise share price 1.02 1.49
Risk free rate 0.02% to 0.10% 0.02% to 0.10%
Expected Volatility 188% to 283% 188% to 283%
Option life 5 years 5 years
Weighted average share GBP0.14 GBP1.02
price
Weighted average fair GBP0.56 GBP1.49
value share option
Warrants
For each set of warrants, the charge has been expensed over the
service period. A share-based payment charge for the year of GBPnil
(202;0 GBPnil) has been expensed in the statement of comprehensive
income.
6 months to 6 months to 12 months to
30 June 2021 30 June 2020 31 Dec
(Unaudited) (Unaudited) 2020
GBP000
Outstanding at 1 January 474 1,812 1,812
Granted - - 259
Transfer to share premium
on exercise of warrants - (473) (1,597)
--------------- --------------- ---------------
Outstanding at 31 Decemeber 474 1.339 474
--------------- --------------- ---------------
8. Convertible loan notes
Planwise Convertible Loan Notes 2016
From the date of the reverse acquisition a convertible loan note
of GBP200,000 was in existence as detailed in the Admission
Document dated 31 March 2014. Proceeds of the subscriptions for the
notes are to be used exclusively to finance the Group's ongoing
working capital requirements. The terms of the loan note are that
the loan notes, plus accrued interest at a rate of 4 per cent above
Bank of England base rate per annum, will convert into ordinary
shares in the Company at a price of GBP0.10 per share at the
election of Planwise any time after the second anniversary of the
re-admission to AIM on 24 April 2014.
Accounting for the convertible debt instrument
The net proceeds received from the issue of the Planwise
Convertible Loan Note 2016 has been recorded as a debt liability in
the Statement of financial position and the accrued interest
charged to the Statement of comprehensive income and the debt
liability. The liability for the convertible debt instrument at 30
June 2021 is;
Planwise Planwise Convertible
Convertible Loan Note
Loan Note 2020
2021
GBP000 GBP000
-------------- -----------------------
Convertible loan notes issued 200 200
Accrued interest 64 52
-------------- -----------------------
264 252
============== =======================
9. Trade and other payables
(unaudited) (unaudited)
30 June 30 June 31 December
2021 2020 2020
GBP'000 GBP'000 GBP'000
------------- ------------- -------------
Convertible loan note liability 264 252 252
Fixed Term Unsecured Loan 95 - 94
Trade payables 2,764 2,598 2,456
Other payables 34 6 11
Accruals 1,807 1,741 1,628
------------- ------------- -------------
4,964 4,596 4,441
============= ============= =============
10. Finance income and costs
(unaudited) (unaudited)
30 June 30 June 31 December
2021 2020 2020
GBP'000 GBP'000 GBP'000
-------------------- ---------------------- -------------
Finance Income
Finance income received on
net investment in lease - - 6
-------------------- ---------------------- -------------
- -
Finance Expenses
Finance charge accrued on
convertible loan notes 13 - 236
Interest expense on lease
liabilities 5 5 13
-------------------- ---------------------- -------------
18 5 249
18 5 243
11. FINANCE LEASE RECEIVABLES
In Jan 2021, the Group entered into two new leases for lab and
office space.
In November 2019, the Group subleased one of its leased office
spaces. The sublease has been classified as a finance lease
receivable.
(unaudited) (unaudited)
30 June 30 June 31 December
2021 2020 2020
GBP'000 GBP'000 GBP'000
------------- ------------- -------------
Current 169 -- 111
Non-current 304 236 -
------------- ------------- -------------
473 236 111
============= ============= =============
The undiscounted lease payments to be received over the next 5
years are as follows:
1 Year 2 years 3 or more
years
GBP000 GBP000 GBP000
Undiscounted lease payments 43 - -
receivable
43 - -
======= ======== ==========
The undiscounted lease payments do not include a discount factor
charge of GBP5k.
During the six months to June 30, 2021, the Group received
GBP46k of income from its subleasing activities.
Finance Lease Receivable 30 June 2021 30 June 2020
GBP000 GBP'000
Finance Lease receivable
as at 1 Jan 2020 111 236
Sublease income (68) (46)
43 190
============= =============
12. LEASES
All leases are accounted for by recognising a right-of-use asset
and a lease liability except for:
-- Leases of low value assets; and
-- Leases with a duration of 12 months or less.
IFRS16 was adopted 1 January 2019 without restatement of
comparative figures. The following policies apply subsequent to the
date of initial application, 1 January 2019.
The Group has leases for its offices. Each lease is reflected on
the balance sheet as a right-of-use asset and a lease liability.
The Group does not have any short-term leases or leases of low
value assets. Variable lease payments which do not depend on an
index or a rate (such as lease payments based on a percentage of
Group sales) are excluded from the initial measurement of the lease
liability and asset. The Group classifies its right-of-use assets
in a consistent manner to its property, plant and equipment.
For leases over office buildings and factory premises the Group
must keep those properties in a good state of repair and return the
properties in their original condition at the end of the lease.
During the six months to 30 June 2021, the Group entered into
new lease agreements for use of additional lab and office
space.
Right-of-use assets 30 June 30 June 31 December
2021 2020 2020
GBP000 GBP000 GBP000
At 1 January 262 329 329
Additions 200 - -
Depreciation (53) (33) (67)
Foreign exchange movements (3) 12 -
-------- -------- ------------
406 308 262
======== ======== ============
Lease Liabilities 30 June 30 June 31 December
2021 2020 2020
GBP000 GBP000 GBP000
At 1 January 407 623 623
Additions 200 - -
Interest expense 5 10 13
Lease payments (127) (94) (235)
Foreign excahange movements (11) - 6
472 539 407
======== ======== ============
Lease liabilities are presented in the statement of financial;
position as follows:
30 June 30 June 31 Dec
2021 2020 2020
GBP000 GBP000 GBP000
Current 168 231 195
Non-current 304 308 212
472 539 407
======== ======== =======
The lease liabilities are secured by the related underlying
assets. Future minimum lease payments as at 30 June 2021 were as
follows:
Minimum lease payment due
Within 1 1-2 years 2-5 years Over 5 Total
year years
30 June 2021
Lease payments 212 122 182 - 516
Finance Charges (44) - (44)
--------- ---------- ---------- ------- ------
Net Present Values 168 122 182 472
========= ========== ========== ======= ======
13. Post balance sheet events
On 20 August 2021, the Company announced it has formally
commenced its strategic plan to change its corporate structure by
establishing Tiziana Life Sciences Ltd , a Bermuda-incorporated
company, as the ultimate parent company of the of the Tiziana
Group. Holders of ordinary shares in Tiziana Life Sciences PLC
("Old Tiziana") will receive shares in New Tiziana in exchange for
their Old Tiziana Shares (and Old Tiziana will become a
wholly-owned subsidiary of New Tiziana). It is proposed that the
New Tiziana Shares will be directly listed on NASDAQ following the
Scheme becoming effective. At the same time the Old Tiziana Shares
will be delisted from the standard segment of the official list of
the Financial Conduct Authority ("FCA") and from trading on the
main market of the London Stock Exchange plc in London and the ADSs
(each representing two Old Tiziana Shares) will cease trading on
NASDAQ. Holders of Old Tiziana Shares and ADSs will instead receive
New Tiziana Shares which will only trade on NASDAQ.
On 2 September 2021, the Company announced an exclusive license
agreement to explore Tiziana's foralumab, a fully human anti-CD3
monoclonal antibody (mAb), as an agent to induce tolerance of
allogeneic CAR T cells to potentially improve the clinical outcome
of CAR T cell therapy.
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END
IR BLGDCDXDDGBS
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Tiziana Life Sciences (LSE:TILS)
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From Jun 2023 to Jun 2024
