Asarina Pharma Aps

management's review

Going concernExecutive Management monitors its liquidity position on a monthly basis to identify liquidity risks and enable the Board of Directors and Executive Management to prepare for new financing transactions and/or take relevant tactical or strategic actions to allow the company to continue its research and development activities as planned as a going concern.At 31 December 2022, the Company had a cash position of DKK 4,957 thousand.The Company’s operations are mainly financed by non-conditional shareholder’s contributions from its parent company (Asarina Pharma AB). In 2022, the company received shareholder’s contribution amounting to DKK 3.5 million.Furthermore, the Company expects to receive approx. DKK 1.1 million in November 2023 from the tax credit scheme for R&D projects.Considering the Company’s current cash position and projected cash requirements, Executive management expects to have sufficient liquidity to fund the planned operations as planned through December 2023.The Board of Directors and Executive Management believe it is possible to obtain sufficient liquidity in due time during 2023 to enable the company to continue its activities beyond 2023. Based on the results from its phase IIa study in Tourette Syndrome, the Company aims to progress the compound into the next clinical development phase. This will require that the Company raises new financing and potentially involve a partner to share the costs. During the rest of 2023, the Company will explore the potential for new financing and a partnership.Since such new funding has not been obtained as of the date of these Financial Statements, material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern exists, and as such, also material uncertainty as to the valuation of the Company’s intangible assets.Considering the material uncertainty related to going concern, the Company may be unable to realize its assets and discharge its liabilities in the normal course of business.Based on the above assessment, Executive Management have prepared the Financial Statements based on a going concern assumption and the intangible assets have not been impaired.Reference is also made to note 2 regarding going concern.