I-MAB | ||||
By | : | /s/ Jielun Zhu | ||
Name | : | Jielun Zhu | ||
Title | : | Director and Chief Financial Officer |
Exhibit No. |
Description | |
99.1 |
Unaudited Consolidated Interim Financial Statements | |
99.2 |
Management’s Discussion and Analysis of Financial Condition and Results Of Operations | |
101.INS |
Inline XBRL Instance Document – this instance document does not appear in the Interactive Data File because its XBRL tags are not embedded within the Inline XBRL document | |
101.SCH |
Inline XBRL Taxonomy Extension Schema | |
101.CAL |
Inline XBRL Taxonomy Extension Calculation Linkbase | |
101.DEF |
Inline XBRL Taxonomy Extension Definition Linkbase | |
101.LAB |
Inline XBRL Taxonomy Extension Label Linkbase | |
101.PRE |
Inline XBRL Taxonomy Extension Presentation Linkbase | |
104 |
Cover Page Interactive Data File (embedded within the Inline IXBRL document) |
Page |
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Consolidated Balance Sheet as of December 31, 2019 and Unaudited Interim Condensed Consolidated Balance Sheet as of September 30, 2020 |
F-2 | |||
Unaudited Interim Condensed Consolidated Statements of Comprehensive Loss for the Nine Months Ended September 30, 2019 and 2020 |
F-4 | |||
Unaudited Interim Condensed Consolidated Statements of Changes in Shareholders’ Equity (Deficit) for the Nine Months Ended September 30, 2019 and 2020 |
F-5 | |||
Unaudited Interim Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2019 and 2020 |
F-6 | |||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements |
F-8 |
As of December 31, |
As of September 30, |
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2019 |
2020 |
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Notes |
RMB |
RMB |
US$ (Note 2.5) |
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Assets |
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Current assets |
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Cash and cash equivalents |
2.6 | |||||||||||||||
Restricted cash |
2.7 | — | — | |||||||||||||
Short-term investments |
2.8 | |||||||||||||||
Prepayments and other receivables |
3 | |||||||||||||||
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Total current assets |
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Property, equipment and software |
4 | |||||||||||||||
Operating lease right-of-use |
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Intangible assets |
5 | |||||||||||||||
Goodwill |
6 | |||||||||||||||
Investment accounted for using the equity method |
7 | — | ||||||||||||||
Other non-current assets |
— | — | ||||||||||||||
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Total assets |
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Liabilities, mezzanine equity and shareholders’ equity (deficit) |
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Current liabilities |
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Short-term borrowings |
8 | — | — | |||||||||||||
Accruals and other payables |
9 | |||||||||||||||
Operating lease liabilities, current |
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Deferred subsidy income |
2.14 | — | ||||||||||||||
Ordinary shares to be issued to Everest |
21 | — | — | |||||||||||||
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Total current liabilities |
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Convertible promissory notes |
13 | |||||||||||||||
Put right liabilities |
7 | — | ||||||||||||||
Operating lease liabilities, non-current |
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Deferred subsidy income |
2.14 | |||||||||||||||
Other non-current liabilities |
9 | — | ||||||||||||||
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Total liabilities |
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Commitments and contingencies |
20 |
As of December 31, |
As of September 30, |
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2019 |
2020 |
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Notes |
RMB |
RMB |
US$ (Note 2.5) |
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Mezzanine equity |
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Series A convertible preferred shares (US$ |
12 | — | — | |||||||||||||
Series B convertible preferred shares (US$ a uthorized, issued and outstanding as of September 30, 2020) |
12 | — | — | |||||||||||||
Series C convertible preferred shares (US$ |
12 | — | — | |||||||||||||
Series C-1 convertible preferred shares (US$ a uthorized, issued and outstanding as of September 30, 2020) |
12 | — | — | |||||||||||||
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Total mezzanine equity |
— |
— |
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Shareholders’ equity (deficit) |
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Ordinary shares (US$ |
11 | |||||||||||||||
Additional paid-in capital |
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Accumulated other comprehensive income |
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Accumulated deficit |
( |
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Total shareholders’ equity (deficit) |
( |
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Total liabilities, mezzanine equity and shareholders’ equity (deficit) |
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Nine Months Ended September 30, |
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2019 |
2020 |
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Notes |
RMB |
RMB |
US$ (Note 2.5) |
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Revenues |
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Licensing and collaboration revenue |
16 | — | — | |||||||||||||
Expenses |
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Research and development expenses |
2.17 | ( |
) | ( |
) | ( |
) | |||||||||
Administrative expenses |
( |
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) | ||||||||||
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Loss from operations |
( |
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( |
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( |
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Interest income |
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Interest expense |
( |
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) | ( |
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Other income, net |
17 | |||||||||||||||
Fair value change of warrants |
14 | — | — | |||||||||||||
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Loss before income tax expense |
( |
) |
( |
) |
( |
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Income tax expense |
10 | — | — | |||||||||||||
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Net loss attributable to I-MAB |
( |
) |
( |
) |
( |
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Net loss attributable to ordinary shareholders |
( |
) |
( |
) |
( |
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Net loss attributable to I-MAB |
( |
) |
( |
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( |
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Other comprehensive income: |
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Foreign currency translation adjustments, net of nil tax |
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Total comprehensive loss attributable to I-MAB |
( |
) |
( |
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( |
) | ||||||||||
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Net loss attributable to ordinary shareholders |
( |
) |
( |
) |
( |
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Weighted-average number of ordinary shares used in calculating net loss per share—basic and diluted |
18 | |||||||||||||||
Net loss per share attributable to ordinary shareholders |
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—Basic |
18 | ( |
) | ( |
) | ( |
) | |||||||||
—Diluted |
18 | ( |
) | ( |
) | ( |
) |
Ordinary shares (Note 11) |
Treasury stock |
Additional paid-in capital |
Accumulated other comprehensive income |
Accumulated deficit |
Total shareholders’ deficit |
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(US$0.001 par value) |
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Number of shares |
Amount |
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RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
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Balance as of December 31, 2018 |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||
Foreign currency translation adjustments |
— | — | — | — | — | |||||||||||||||||||||||
Net loss |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||
Share-based compensation |
— | — | — | — | — | |||||||||||||||||||||||
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Balance as of September 30, 2019 |
( |
) |
( |
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( |
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Balance as of December 31, 2019 |
— | ( |
) |
( |
) | |||||||||||||||||||||||
Foreign currency translation adjustments |
— | — | — | — | — | |||||||||||||||||||||||
Net loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
Share-based compensation |
— | — | — | — | — | |||||||||||||||||||||||
Exercise of stock options |
— | — | — | |||||||||||||||||||||||||
Capital contribution from stock option surrender (Note 15 (h)) |
— | — | — | — | — | |||||||||||||||||||||||
Conversion of preferred shares to ordinary shares upon the completion of initial public offering (“IPO”) |
— | — | — | |||||||||||||||||||||||||
Issuance of ordinary shares to Everest |
— | — | — | |||||||||||||||||||||||||
Issuance of ordinary shares upon IPO and over-allotment, net of issuance cost |
— | — | — | |||||||||||||||||||||||||
Issuance of ordinary shares upon private placement, net of issuance cost |
— | — | — | |||||||||||||||||||||||||
Issuance of warrants |
— | — | — | — | ||||||||||||||||||||||||
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Balance as of September 30, 2020 |
— | ( |
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Nine Months Ended September 30, |
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2019 |
2020 |
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RMB |
RMB |
US$ (Note 2.5) |
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Cash flows from operating activities |
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Net loss |
( |
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) | ( |
) | ||||||
Adjustments to reconcile net loss to net cash used in operating activities |
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Depreciation of property, equipment and software |
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Loss on disposal of property, equipment and software |
— | |||||||||||
Fair value change of short-term investments |
( |
) | ( |
) | ( |
) | ||||||
Fair value change of warrants |
( |
) | — | — | ||||||||
Fair value change of other financial assets |
— | — | ||||||||||
Share-based compensation |
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Amortization of right-of use assets and interest of lease liabilities |
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Gains on deconsolidation of a subsidiary |
— | ( |
) | ( |
) | |||||||
Changes in operating assets and liabilities |
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Prepayments and other receivables |
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Accruals and other payables |
( |
) | ( |
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Advance from customers |
( |
) | — | — | ||||||||
Research and development funding received |
— | — | ||||||||||
Deferred subsidy income |
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Other non-current liabilities |
— | |||||||||||
Lease liabilities |
( |
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) | ( |
) | ||||||
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Net cash used in operating activities |
( |
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( |
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( |
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Cash flows from investing activities |
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Purchase of property, equipment and software |
( |
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) | ( |
) | ||||||
Proceeds from disposal of property, equipment and software |
— | — | ||||||||||
Proceeds from disposal of short-term investments |
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Purchase of short-term investments |
( |
) | ( |
) | ( |
) | ||||||
Cash disposed of resulting from deconsolidation of a subsidiary |
— | ( |
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Cash received from disposal of other financial assets |
— | — | ||||||||||
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Net cash generated from (used in) investing activities |
( |
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( |
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Nine Months Ended September 30, |
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2019 |
2020 |
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RMB |
RMB |
US$ (Note 2.5) |
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Cash flows from financing activities |
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Consideration received in advance from a preferred shares investor |
— | — | ||||||||||
Proceeds from initial public offering and over-allotment, net of underwriting discounts and commissions |
— | |||||||||||
Payment of issuance cost for initial public offering and over-allotment |
( |
) | ( |
) | ( |
) | ||||||
Proceeds from private placement, net of payment of issuance cost |
— | |||||||||||
Proceeds from exercise of stock options |
— | |||||||||||
Proceeds from bank borrowings |
— | — | ||||||||||
Prepayment for stock repurchase program |
— | ( |
) | ( |
) | |||||||
Repayment of bank borrowings |
( |
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Net cash generated from financing activities |
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Effect of exchange rate changes on cash and cash equivalents and restricted cash |
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Net increase (decrease) in cash and cash equivalents and restricted cash |
( |
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Cash, cash equivalents, and restricted cash, beginning of period |
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Cash, cash equivalents, and restricted cash, end of the period |
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Additional ASC 842 supplemental disclosures |
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Cash paid for fixed operating lease costs included in the measurement of lease obligations in operating activities |
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Right-of-use |
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Other supplemental cash flow disclosures |
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Interest paid |
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Non-cash activities |
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Accrued initial public offering costs payable |
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Accrued private placement offering costs payable |
— | |||||||||||
Ordinary shares issued to Everest |
— | |||||||||||
Conversion of preferred shares to ordinary shares |
— |
Subsidiaries |
Place of incorporation |
Date of incorporation or acquisition |
Percentage of direct or indirect ownership by the Company |
Principal activities | ||||||
I-Mab Biopharma Hong Kong Limited (“I-Mab Hong Kong”) |
% | |||||||||
I-Mab Shanghai |
% | of innovative medicines | ||||||||
I-Mab Bio-tech (Tianjin) Co., Ltd. (“I-Mab Tianjin”) |
% | of innovative medicines | ||||||||
I-Mab Biopharma US Ltd. |
% | of innovative medicines |
As of December 31, 2019 |
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Active market (Level 1) |
Observable input (Level 2) |
Non-observable input (Level 3) |
Total |
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RMB |
RMB |
RMB |
RMB |
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Assets: |
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Short-term investments |
— | — | ||||||||||||||
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As of September 30, 2020 |
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Active market (Level 1) |
Observable input (Level 2) |
Non-observable input (Level 3) |
Total |
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RMB |
RMB |
RMB |
RMB |
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Assets: |
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Short-term investments |
— | — | ||||||||||||||
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Liabilities |
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Put right liabilities |
— | — | ||||||||||||||
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Short-term investments |
Put right liabilities |
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Fair value of Level 3 financial assets and financial liabilities as of December 31, 2019 |
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Purchase of short-term investments |
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Disposal of short-term investments |
( |
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Grant of put right liabilities |
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Fair value changes |
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Effect of exchange rate changes |
( |
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Fair value of Level 3 financial assets and financial liabilities as of September 30, 2020 |
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Laboratory equipment |
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Software |
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Office furniture and equipment |
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Leasehold improvements |
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• | Clarifies that certain transactions between collaborative arrangement participants should be accounted for as revenue under ASC 606, Revenue from Contracts with Customers, when the collaborative arrangement participant is a customer in the context of a unit of account. In those situations, all the guidance in ASC 606 should be applied, including recognition, measurement, presentation and disclosure requirements; |
• | Adds unit-of-account guidance |
• | Precludes a company from presenting transactions with collaborative arrangement participants that are not directly related to sales to third parties with revenue recognized under ASC 606 if the collaborative arrangement participant is not a customer. |
As of December 31, |
As of September 30, |
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2019 |
2020 |
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RMB |
RMB |
US$ (Note 2.5) |
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Prepayments: |
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—Prepayments to CRO vendors |
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—Prepayments for stock repurchase program (Note 11) |
— | |||||||||||
—Prepayments for other services |
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Receivables due from employees (Note (i)) |
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Loans to an affiliate (Note 21) |
— | |||||||||||
Value-added tax recoverable |
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Rental deposits |
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Interest receivables |
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Others |
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As of December 31, |
As of September 30, |
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2019 |
2020 |
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RMB |
RMB |
US$ (Note 2.5) |
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Cost |
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Laboratory equipment |
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Leasehold improvement |
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Software |
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Office furniture and equipment |
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Total property, equipment and software |
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Less: accumulated depreciation and amortization |
( |
) | ( |
) | ( |
) | ||||||
Net book value |
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Construction in progress |
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Total net book value of property, equipment and software |
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As of December 31, |
As of September 30, |
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2019 |
2020 |
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RMB |
RMB |
US$ (Note 2.5) |
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Cost |
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IPR&D |
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Less: accumulated amortization |
— | — | — | |||||||||
Net book value |
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(i) | I-Mab Hong Kong agreed to assign all rights and obligations/ownership of certain drug candidates in different stages of development (“Target Pipelines”) to I-Mab Hangzhou as of the Closing Date as well as to transfer employment of a team of designated management/workforce to I-Mab Hangzhou. The Target Pipelines were evaluated by an independent valuer, with a total value of US$ |
(ii) | Management Holdco would acquire I-Mab Hangzhou from I-Mab Hong Kong with no consideration. The 10 % equity is represented by I-Mab Hangzhou’s registered capital of US$I-Mab Hangzhou to fulfil its capital contribution obligations in a period of four years starting from the Closing Date; |
(iii) | ESOP Holdco would acquire I-Mab Hangzhou from I-Mab Hong Kong with no consideration. The 5% equity is represented by I-Mab Hangzhou’s registered capital of US$I-Mab Hangzhou’s equity incentive plan. |
(iv) | Domestic Investors would acquire a total of I-Mab Hangzhou from I-Mab Hong Kong with no consideration. The 40 % equity is represented I-Mab Hangzhou’s registered capital of US$I-Mab Hangzhou, Domestic Investors would pay US$I-Mab Hangzhou to fulfil its capital contribution obligations. |
i) | The fair value of the retained noncontrolling investment in I-Mab Hangzhou at the Closing Date; and |
ii) | The aggregate of all of the following: |
a) | the carrying amount of transferred intellectual property related to TJ102 at the Closing Date (Note 5); |
b) | the fair value of the put right liabilities written by I-Mab Hong Kong to Domestic Investors; |
c) | the carrying amount of I-Mab Hangzhou’s net assets at the Closing Date. |
As of September 15, and September 30, |
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2020 |
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Expected terms (Year) |
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Estimated volatility |
% | |||
Spot price |
US$ | |||
Probability of triggering event for redemption option |
% |
As of December 31, |
As of September 30, |
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