Investor Relations Captor Therapeutics ®
Information on receipt by the Company of the results of the Audit
Current report: no. 10/2022
Date of drafting: 08 April 2022.
Subject: Information on receipt by the Company of the results of the Audit
Legal basis: Article 17(1) MAR - inside information
The Management Board of Captor Therapeutics S.A. with its registered seat in Wrocław (the "Company"), in reference to current report no. 5/2022 dated 26 January 2022 concerning an audit commissioned by the Company to external recognized financial and legal advisors (the "Audit"), hereby informs that the Company has received the results of the Audit. The scope of the Audit covered settlements of eligible costs incurred by the Company under all EU projects under the agreements concluded by the Company with the National Centre for Research and Development ("Projects", "NCRD"). The time scope of the Audit covered the agreements concerning the incurrence of eligible costs by the Company concluded until 31 December 2021.
As a result of the Audit, certain irregularities were identified resulting, in the Company's opinion, in an obligation to reimburse the following amounts with respect to individual Projects:
POIR.01.01.01-00-0931/19-00 – PLN 104 889,98
POIR.01.01.01-00-0741/19-00 – PLN 279 190,33
POIR.01.01.01-00-0747/16-00 – PLN 1 008 328,40
POIR.01.02.00-00-0073/18-00 – PLN 557 027,89
POIR.01.02.00-00-0079/18-00 – PLN 476 541,33
POIR.01.01.01-00-0956/17-00 – PLN 1 026 946,40
POIR.01.01.01-00-0740/19-00 – PLN 437 914,08
Summing up, the total amount which, in the Company's opinion, should be returned to NCRD is PLN 3 890 838,41, which constitutes 2,22% of the total amount for which all agreements with NCRD were concluded by the Company (i.e. PLN 175.1 million) and 5,4% of NCRD funding received by the Company so far (i.e. PLN 72.5 million as of 31.03.2022). The above refund amount will be additionally increased by interest to be calculated as of the refund date. The Company will immediately notify NCRD about the identified irregularities and return the above amount to NCRD. In the opinion of the Company the above determination of the amounts that the Company intends to return to NCRD is prudent (conservative) and the Company does not expect that, as a result of NCRD's verification, this amount should be increased, but a different assessment by NCRD cannot be excluded. The Company intends to obtain confirmation from NCRD of the correctness and finality of the settlement of irregularities as soon as possible and to fully cooperate with NCRD on the settlement. The ongoing settlement of costs relating to the Projects is being carried out by NCRD without any disruption and without any negative impact on the progress of research and development works.
In addition, the Company is currently analysing the accounting treatment of the reimbursement which is going to be made by the Company and at this stage anticipates that a provision will be made for the amount to be reimbursed to NCRD representing an expense affecting the result in 2021.
For the avoidance of any doubt, the Management Board indicates that the potential irregularities are not related to the substantive or qualitative scope of performance of the Projects, and the progress made in the research and development of the Projects and the information indicated in periodic reports and current reports in which the Company informed about the progress remain valid.
In addition, the Company, on the basis of the information resulting from the actions taken within the Audit, will undertake implement all legal measures aimed at recovering the amounts to be returned to NCRD in connection with the irregularities identified.
The Company will report further material events relating to the subject matter of this report in accordance with legal requirements.