SEC Filing | ASLAN Pharmaceuticals

ASLAN PHARMACEUTICALS LIMITED

(Registrant)

/s/ Kiran Kumar Asarpota

Kiran Kumar Asarpota

Chief Operating Officer

View:

Download DOC

Download PDF

Download XLS

Download XBRL

FORM 6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM

6-K

REPORT OF FOREIGN ISSUER

PURSUANT TO RULE

13a-16

15d-16

OF THE SECURITIES EXCHANGE ACT OF 1934

August 12, 2022

(Commission File

No. 001-38475)

ASLAN PHARMACEUTICALS LIMITED

(REG. NO. 289175)

(Translation of registrant’s name into English)

CAYMAN ISLANDS

(Jurisdiction of incorporation or organization)

83 CLEMENCEAU AVENUE

#12-03

UE SQUARE

SINGAPORE 239920

(Address of registrant’s principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover Form

20-F

or Form

40-F.

Form

20-F

☒ Form

40-F

☐

Indicate by check mark if the registrant is submitting the Form

6-K

in paper as permitted by Regulation

S-T

Rule 101 (b) (1):

Yes ☐ No ☒

Indicate by check mark if the registrant is submitting the Form

6-K

in paper as permitted by Regulation

S-T

Rule 101 (b) (7):

Yes ☐ No ☒

Announcement of Second Quarter 2022 Financial Results and Corporate Update

On August 12, 2022, ASLAN Pharmaceuticals Limited (the “Company”) issued a press release announcing its financial results for the fiscal quarter ended June 30, 2022 and providing an update on recent corporate activities.

A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated by reference herein.

Financial Statements

On August 12, 2022, the Company issued its condensed consolidated financial statements for the six months ended June 30, 2022 (the “Financial Statements”).

A copy of the Financial Statements is attached hereto as Exhibit 99.2 and is incorporated by reference herein.

The information contained in this Form

6-K

is hereby incorporated by reference into the Company’s Registration Statement on

Form F-3

(File

No. 333-234405),

Registration Statement on

Form F-3

(File

No. 333-252575),

Registration Statement on

Form F-3

(File

No. 333-254768),

Registration Statement on Form

S-8

(File

No. 333-252118)

and Registration Statement on

Form S-8

(File

No. 333-263843).

Forward Looking Statements

This Form

6-K

contains forward-looking statements. These statements are based on the current beliefs and expectations of the management of the Company. These forward-looking statements may include, but are not limited to, statements regarding the Company’s business strategy and clinical development plans; the Company’s plans to develop and commercialize

eblasakimab

and

farudodsta

; the safety and efficacy of

eblasakimab

and

farudodstat

; the potential of

eblasakimab

as a

first-in-class

treatment for atopic dermatitis and of

farudodstat

as a treatment for autoimmune disease; and the Company’s cash runway. The Company’s estimates, projections and other forward-looking statements are based on management’s current assumptions and expectations of future events and trends, which affect or may affect the Company’s business, strategy, operations or financial performance, and inherently involve significant known and unknown risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation the risk factors described in the Company’s U.S. Securities and Exchange Commission (the “SEC”) filings and reports (Commission File

No. 001-38475),

including the Company’s Annual Report on Form

20-F

filed with the SEC on March 25, 2022.

All statements other than statements of historical fact are forward-looking statements. The words “believe,” “may,” “might,” “could,” “will,” “aim,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “plan,” or the negative of those terms, and similar expressions that convey uncertainty of future events or outcomes are intended to identify estimates, projections and other forward-looking statements. Estimates, projections and other forward-looking statements speak only as of the date they were made, and, except to the extent required by law, the Company undertakes no obligation to update or review any estimate, projection or forward-looking statement.

Exhibits


Exhibit Number		Exhibit Description

99.1		Press release dated August 12, 2022

99.2		ASLAN Pharmaceuticals Limited Financial Statements for the six months ended June 30, 2022

101.INS		XBRL Instance Document

101.SCH		XBRL Taxonomy Extension Schema Document

101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		XBRL Taxonomy Extension Label Linkbase Document

101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.

Date: August 12, 2022

EX-99.1

Exhibit 99.1

LOGO

PRESS RELEASE

ASLAN PHARMACEUTICALS REPORTS SECOND QUARTER 2022 FINANCIAL RESULTS AND PROVIDES CORPORATE UPDATE

Company maintains healthy operating position with US$78.1 million in cash, cash equivalents and short-term investments as of June 30, 2022, runway through late 2023

Three abstracts showcasing new findings related to eblasakimab have been accepted as e-posters at the 31^st European Academy of Dermatology and Venereology (EADV) Annual Congress, from September 7 to 10, 2022, in Milan, Italy

The Phase 2b TREK-AD trial for eblasakimab in moderate-to-severe AD is on track to generate topline data in the first half of 2023

Company to host R&D Day; details will follow closer to the date of September 15, 2022

California and Singapore, August 12, 2022 – ASLAN Pharmaceuticals (Nasdaq: ASLN), a clinical-stage, immunology-focused biopharmaceutical company developing innovative treatments to transform the lives of patients, today announced financial results for the second quarter ended June 30, 2022, and provided an update on recent corporate activities.

“This quarter, we advanced our understanding of eblasakimab’s differentiated profile and its role in reducing pruritic neuronal responses – which remains one of the most burdensome symptoms for AD patients – with late-breaking data presented at the Society for Investigative Dermatology meeting,” stated Dr Carl Firth, CEO, ASLAN Pharmaceuticals. “These insights, and those that we are building with the initiation of new research collaborations related to eblasakimab’s unique mechanism of action, contribute key data on the distinct biological effects of eblasakimab’s selective targeting of the Type 2 receptor and its differentiation from current standard-of-care therapies. We look forward to sharing new insights on eblasakimab at the upcoming EADV Annual Congress in September as we continue to progress the TREK-AD trial of eblasakimab in moderate-severe AD and remain on track for a topline data readout from the trial in the first half of 2023.”

Second quarter 2022 and recent business highlights

Eblasakimab

•

In May, the Company presented new, late-breaking data on insights related to neuronal itch mechanisms through eblasakimab’s targeting of IL-13Ra1 at the Society for Investigative Dermatology (SID) Annual Meeting. The findings demonstrated that eblasakimab significantly reduced cytokine-enhanced neuronal responses to IL-4 and IL-13-driven itch by more than 40% versus control conditions (p=0.0001), and suggest eblasakimab’s unique mechanism of blocking IL-13Ra1 could provide a molecular basis for the significant reduction of pruritis scores observed in eblasakimab-treated moderate-to-severe AD patients in the Phase 1b clinical trial. Further data from the translational studies will be shared in the second half of 2022.

•

In June, the Company initiated a scientific collaboration with Dr Shawn Kwatra from Johns Hopkins University School of Medicine and Dr Madan Kwatra from Duke University Medical Center to explore the distinct role of IL-13 receptor signaling in AD. The collaboration is evaluating how IL-13Ra1-mediated allergic, inflammatory and regulatory pathways are affected by eblasakimab’s selective targeting of the Type 2 receptor. Research findings will be disclosed for presentation during the second half of 2022.

LOGO

•

In June, the Company hosted the third episode in its series of Key Opinion Leader (KOL) webinars, the “A⁴ (Aspects of Atopic Dermatitis and ASLAN004/eblasakimab) Series: ‘Dialogues with International Thought Leaders in Dermatology’”. Peter Lio MD, Clinical Assistant Professor of Dermatology and Pediatrics at Northwestern University, discussed the limitations of the current treatment landscape in AD and the resulting unmet medical needs in patients who do not respond optimally to current standards of care. All three webinar episodes from the A⁴series are available for replay here.

Farudodstat (ASLAN003)

•

In June, based on emerging clinical data for DHODH inhibitors in inflammatory bowel disease, the Company decided to prioritize the further development of farudodstat in autoimmune skin diseases. A clinical development plan is being finalized and a Phase 2 trial is expected to commence in the first half of 2023.

Anticipated upcoming milestones

•

Three abstracts with new data on biomarkers and patient reported outcome measures from the Phase 1b proof-of-concept trial of eblasakimab have been accepted for e-poster presentation at the 31^st EADV Annual Congress held in person and virtually, from September 7 to 10, 2022, in Milan, Italy.

•

The Company will host a Research and Development (R&D) Day on September 15, 2022, with a hybrid in-person and virtual format. More information will be announced in the weeks ahead.

•

Topline data from the Phase 2b TREK-AD trial of eblasakimab is expected in the first half of 2023.

Second quarter 2022 financial highlights

•

Cash used in operating activities for the second quarter of 2022 was US$9.7 million compared to US$6.9 million in the same period in 2021.

•

Cash, cash equivalents and short-term investments as of June 30, 2022, were US$78.1 million.

•

Research and development expenses were US$10.0 million in the second quarter of 2022 compared to US$4.0 million in the second quarter of 2021. The increase was due to clinical development expenses and manufacturing costs related to eblasakimab TREK-AD Phase 2b trial.

•

General and administrative expenses were US$2.3 million in the second quarter of 2022 compared to US$3.8 million in the second quarter of 2021.

•

Net loss attributable to stockholders for the second quarter of 2022 was US$13.0 million compared to a net loss of US$5.4 million for the second quarter of 2021.

•

The weighted average number of American Depositary Shares (ADS) outstanding in the computation of basic loss per share for the second quarter of 2022 was 69.7 million (representing 348.7 million ordinary shares) compared to 69.6 million (representing 347.8 million ordinary shares) for the second quarter of 2021. One ADS is the equivalent of five ordinary shares.

LOGO

ASLAN Pharmaceuticals Limited

CONSOLIDATED BALANCE SHEETS

(In US Dollars)


	December 31, 2021 (audited)			June 30, 2022 (audit reviewed)
ASSETS

CURRENT ASSETS
Cash and cash equivalents	$	90,167,967		$	61,576,463
Short-term investments		—			16,543,352

Total cash, cash equivalents, and short-term investments		90,167,967			78,119,815

Other assets		3,612,846			2,244,246

Total current assets	$	93,780,813		$	80,364,061


NON-CURRENT ASSETS
Investment in associate company		494,728			132,247
Property, plant and equipment		34,979			44,596
Right-of-use assets		197,746			65,344
Intangible assets		9,956			7,896

Total non-current assets		737,409			250,083


TOTAL ASSETS	$	94,518,222		$	80,614,144


LIABILITIES AND EQUITY

CURRENT LIABILITIES
Trade payables	$	3,116,786		$	9,442,905
Other payables		2,817,909			1,913,020
Lease liabilities - current		199,124			50,117
Financial liabilities at fair value through profit or loss		223,352			119,351

Total current liabilities		6,357,171			11,525,393


NON-CURRENT LIABILITIES
Long-term borrowings		30,857,308			36,420,039

Total non-current liabilities		30,857,308			36,420,039


Total liabilities		37,214,479			47,945,432


EQUITY ATTRIBUTABLE TO STOCKHOLDERS OF THE COMPANY
Ordinary shares		63,019,962			63,019,962
Capital surplus		221,467,061			222,803,698
Accumulated deficits		(227,004,332	)		(252,976,000	)
Other reserves		(178,948	)		(178,948	)


Total equity attributable to stockholders of the Company		57,303,743			32,668,712


Total equity		57,303,743			32,668,712


TOTAL LIABILITIES AND EQUITY	$	94,518,222		$	80,614,144

LOGO

ASLAN Pharmaceuticals Limited

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In US Dollars, other than shares or share data)


	For the Three Months Ended June 30						For the Six Months Ended June 30
	2021			2022			2021			2022
OPERATING EXPENSES
General and administrative expenses	$	(3,788,772	)	$	(2,319,516	)	$	(6,893,836	)	$	(4,855,050	)
Research and development expenses		(4,044,521	)		(9,980,936	)		(7,795,493	)		(19,339,046	)

Total operating expenses		(7,833,293	)		(12,300,453	)		(14,689,329	)		(24,194,095	)


LOSS FROM OPERATIONS		(7,833,293	)		(12,300,453	)		(14,689,329	)		(24,194,095	)


NON-OPERATING INCOME AND EXPENSES
Other income		340,076			37,420			340,076			156,749
Interest income		20			41,373			157			43,797
Gain on dilution of subsidiary and recognition of associate		2,307,735			—			2,307,735			—
Impairment loss of associate accounted for using equity method		—			(50,109	)		—			(50,109	)
Other gains and losses		22,451			268,059			319,636			344,683
Finance costs		(203,428	)		(877,300	)		(614,902	)		(1,960,321	)

Total non-operating income and expenses		2,466,854			(580,557	)		2,352,702			(1,465,201	)


Share in losses of associated company, accounted for using equity method		(81,880	)		(153,871	)		(81,880	)		(312,372	)

LOSS BEFORE INCOME TAX		(5,448,319	)		(13,034,881	)		(12,418,507	)		(25,971,668	)

INCOME TAX EXPENSE		—			—			—			—


NET LOSS FOR THE PERIOD		(5,448,319	)		(13,034,881	)		(12,418,507	)		(25,971,668	)


OTHER COMPREHENSIVE LOSS
Items that will not be reclassified subsequently to profit or loss:
Unrealized loss on investments in equity instruments at fair value through other comprehensive income		—			—			—			—

TOTAL COMPREHENSIVE LOSS FOR THE PERIOD	$	(5,448,319	)	$	(13,034,881	)	$	(12,418,507	)	$	(25,971,668	)


NET LOSS ATTRIBUTABLE TO:
Stockholders of the Company	$	(5,429,026	)	$	(13,034,881	)	$	(12,149,543	)	$	(25,971,668	)
Non-controlling interests		(19,293	)		—			(268,964	)		—

	$	(5,448,319	)	$	(13,034,881	)	$	(12,418,507	)	$	(25,971,668	)


TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE TO:
Stockholders of the Company	$	(5,429,026	)	$	(13,034,881	)	$	(12,149,543	)	$	(25,971,668	)
Non-controlling interests		(19,293	)		—			(268,964	)		—

	$	(5,448,319	)	$	(13,034,881	)	$	(12,418,507	)	$	(25,971,668	)


LOSS PER ORDINARY SHARE
Basic and diluted	$	(0.02	)	$	(0.04	)	$	(0.04	)	$	(0.07	)

LOSS PER EQUIVALENT ADS
Basic and diluted	$	(0.08	)	$	(0.19	)	$	(0.20	)	$	(0.35	)

Weighted-average number of ordinary shares in the computation of basic loss per ordinary share		347,799,933			348,723,365			302,985,377			348,723,365
Weighted-average number of ADS in the computation of basic loss per ADS		69,559,987			69,744,673			60,597,075			69,744,673

Each ADS represents five ordinary shares

LOGO

About ASLAN Pharmaceuticals

ASLAN Pharmaceuticals (Nasdaq: ASLN) is a clinical-stage, immunology-focused biopharmaceutical company developing innovative treatments to transform the lives of patients. ASLAN is currently evaluating eblasakimab (also known as ASLAN004), a potential first-in-class antibody targeting the IL-13 receptor, in atopic dermatitis, and farudodstat (also known as ASLAN003), a potent oral inhibitor of the enzyme DHODH, in autoimmune disease. ASLAN has a team in California, and in Singapore. For additional information please visit www.aslanpharma.com or follow ASLAN on LinkedIn.

Forward looking statements

This release contains forward-looking statements. These statements are based on the current beliefs and expectations of the management of ASLAN Pharmaceuticals Limited and/or its affiliates (the “Company”). These forward-looking statements may include, but are not limited to, statements regarding the Company’s business strategy and clinical development plans; the Company’s plans to develop and commercialize eblasakimab and farudodstat; the safety and efficacy of eblasakimab and farudodstat; the Company’s plans and expected timing with respect to clinical trials, clinical trial enrollment and clinical trial results for eblasakimab and farudodstat; the potential of eblasakimab as a first-in-class treatment for atopic dermatitis and of farudodstat as a treatment for autoimmune disease; and the Company’s cash runway. The Company’s estimates, projections and other forward-looking statements are based on management’s current assumptions and expectations of future events and trends, which affect or may affect the Company’s business, strategy, operations, or financial performance, and inherently involve significant known and unknown risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of many risks and uncertainties, which include, unexpected safety or efficacy data observed during preclinical or clinical studies; clinical site activation rates or clinical trial enrollment rates that are lower than expected; the impact of the COVID-19 pandemic or the ongoing conflict between Ukraine and Russia on the Company’s business and the global economy; general market conditions; changes in the competitive landscape; and the Company’s ability to obtain sufficient financing to fund its strategic and clinical development plans. Other factors that may cause actual results to differ from those expressed or implied in such forward-looking statements are described in the Company’s US Securities and Exchange Commission filings and reports (Commission File No. 001- 38475), including the Company’s Annual Report on Form 20-F filed with the US Securities and Exchange Commission on March 25, 2022. All statements other than statements of historical fact are forward-looking statements. The words “believe,” “may,” “might,” “could,” “will,” “aim,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “plan,” or the negative of those terms, and similar expressions that convey uncertainty of future events or outcomes are intended to identify estimates, projections, and other forward-looking statements. Estimates, projections, and other forward-looking statements speak only as of the date they were made, and, except to the extent required by law, the Company undertakes no obligation to update or review any estimate, projection, or forward-looking statement.

Ends

Media and IR contacts

Emma Thompson

Spurwing Communications

Tel: +65 6206 7350

Email: ASLAN@spurwingcomms.com

Ashley R. Robinson

LifeSci Advisors, LLC

Tel: +1 (617) 430-7577

Email: arr@lifesciadvisors.com

EX-99.2

Exhibit 99.2

ASLAN PHARMACEUTICALS LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In U.S. Dollars, other than shares or share data, or otherwise noted)

(Unaudited)


	December 31, 2021			June 30, 2022
ASSETS

CURRENT ASSETS
Cash and cash equivalents (Note 6)	$	90,167,967		$	61,576,463
Short-term investments ( Notes 7 and 12 )		—			16,543,352

Total cash, cash equivalents, and short-term investments		90,167,967			78,119,815

Other assets (Note 8)		3,612,846			2,244,246

Total current assets		93,780,813			80,364,061


NON-CURRENT ASSETS
Investment in associate company (Notes 9 and 10)		494,728			132,247
Property, plant and equipment, net		34,979			44,596
Right-of-use assets		197,746			65,344
Intangible assets		9,956			7,896

Total non-current assets		737,409			250,083

TOTAL ASSETS	$	94,518,222		$	80,614,144

LIABILITIES AND EQUITY

CURRENT LIABILITIES
Trade payables	$	3,116,786		$	9,442,905
Other payables ( Note 11)		2,817,909			1,913,020
Lease liabilities – current		199,124			50,117
Financial liabilities at fair value through profit or loss (Note 20)		223,352			119,351

Total current liabilities		6,357,171			11,525,393

NON-CURRENT LIABILITIES
Long-term borrowings (Note 12)		30,857,308			36,420,039

Total non-current liabilities		30,857,308			36,420,039

TOTAL LIABILITIES		37,214,479			47,945,432

EQUITY ATTRIBUTABLE TO STOCKHOLDERS OF THE COMPANY
Ordinary shares (Note 13)		63,019,962			63,019,962
Capital, share options and other reserves		221,467,061			222,803,698
Accumulated deficits		(227,004,332	)		(252,976,000	)
Other reserves		(178,948	)		(178,948	)

Total equity attributable to stockholders of the Company		57,303,743			32,668,712

Total equity		57,303,743			32,668,712


TOTAL LIABILITIES AND EQUITY	$	94,518,222		$	80,614,144

The accompanying notes are an integral part of the condensed consolidated financial statements.

F-1

ASLAN PHARMACEUTICALS LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In U.S. Dollars, other than shares or share data, or otherwise noted)

(Unaudited)


	For the six months ended June 30
	2021			2022
NET REVENUE	$	—		$

COST OF REVENUE		—


GROSS PROFIT		—


OPERATING EXPENSES (Notes 14 and 17)
General and administrative expenses		(6,893,836	)		(4,855,050	)
Research and development expenses		(7,795,493	)		(19,339,045	)

Total operating expenses		(14,689,329	)		(24,194,095	)

LOSS FROM OPERATIONS		(14,689,329	)		(24,194,095	)


NON-OPERATING INCOME AND EXPENSES
Other income (Note 14)		340,076			156,749
Interest income		157			43,797
Gain on dilution of subsidiary and recognition of associate (Note 10)		2,307,735			—
Impairment loss of associate accounted for using equity method		—			(50,109	)
Other gains		319,636			344,683
Finance costs (Note 14)		(614,902	)		(1,960,321	)

Total non-operating income and expenses		2,352,702			(1,465,201	)

Share in losses of associated company, accounted for using equity method		(81,880	)		(312,372	)

LOSS BEFORE INCOME TAX		(12,418,507	)		(25,971,668	)

INCOME TAX EXPENSE (Note 15)		—			—


NET LOSS FOR THE PERIOD		(12,418,507	)		(25,971,668	)


OTHER COMPREHENSIVE LOSS
Items that will not be reclassified subsequently to profit or loss:		—			—
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD	$	(12,418,507	)	$	(25,971,668	)


NET LOSS ATTRIBUTABLE TO
Stockholders of the Company	$	(12,149,543	)	$	(25,971,668	)
Non-controlling interests		(268,964	)		—

	$	(12,418,507	)	$	(25,971,668	)

TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE TO
Stockholders of the Company	$	(12,149,543	)	$	(25,971,668	)
Non-controlling interests		(268,964	)		—

	$	(12,418,507	)	$	(25,971,668	)

LOSS PER ORDINARY SHARE (Note 16)
Basic and diluted	$	(0.04	)	$	(0.07	)
LOSS PER EQUIVALENT ADS (Note 16)
Basic and diluted	$	(0.20	)	$	(0.35	)

Each ADS represents five ordinary shares.

The accompanying notes are an integral part of the condensed consolidated financial statements.

F-2

ASLAN PHARMACEUTICALS LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In U.S. Dollars, other than shares or share data, or otherwise noted)

(Unaudited)


	Ordinary Shares (Note 13)				Capital Surplus, share options and other reserves
	Number of shares		Amount		Ordinary Shares			Share Options Reserve			Other			Total			Accumulated Deficits			Unrealized Valuation Loss on Financial Assets at Fair Value Through Other Comprehensive Income			Non- controlling Interests (Note 8)			Total Equity
BALANCE AT JANUARY 1, 2021		209,675,470	$	61,826,237	$	115,754,741		$	6,406,791		$	1,420,928		$	123,582,460		$	(195,682,714	)	$	(178,948	)	$	300,681		$	(10,152,284	)
Issuance of new share capital (Note 13)		136,412,540	$	1,167,371	$	100,388,337		$	—		$	—		$	100,388,337		$	—		$	—		$	—		$	101,555,708
Transaction cost attributable to the issuance of ordinary shares		—	$	—	$	(4,576,671	)	$	—		$	—		$	(4,576,671	)	$	—		$	—		$	—		$	(4,576,671	)
Issuance of ordinary shares under employee share option plan		572,500	$	5,725	$	714,275		$	(505,500	)	$	—		$	208,775		$	—		$	—		$	—		$	214,500
Recognition of employee share options by the company (Note 13)		—	$	—	$	—		$	1,564,673		$	—		$	1,564,673		$	—		$	—		$	—		$	1,564,673
Warrants exercised		1,425,550	$	14,256	$	561,143		$	—		$	—		$	561,143		$	—		$	—		$	—		$	575,399
Non-controlling interests derecognized due to dilution of subsidiary (Note 10 )		—	$	—	$	—		$	—		$	—		$	—		$	—		$	—		$	(31,717	)	$	(31,717	)
Other comprehensive income due to dilution of subsidiary (Note 10)		—	$	—	$	—		$	—		$	(1,376,349	)	$	(1,376,349	)	$	—		$	—		$	—		$	(1,376,349	)
Net loss for the six months ended June 30, 2021		—	$	—	$	—		$	—		$	—		$	—		$	(12,149,543	)	$	—		$	(268,964	)	$	(12,418,507	)

Total comprehensive loss for the six months ended June 30, 2021		—	$	—	$	—		$	—		$	—		$	—		$	(12,149,543	)	$	—		$	(268,964	)	$	(12,418,507	)

BALANCE AT JUNE 30, 2021		348,086,060	$	63,013,589	$	212,841,825		$	7,465,964		$	44,579		$	220,352,368		$	(207,832,257	)	$	(178,948	)	$	—		$	75,354,752

BALANCE AT JANUARY 1, 2022		348,723,365	$	63,019,962	$	213,098,729		$	8,323,753		$	44,579		$	221,467,061		$	(227,004,332	)	$	(178,948	)	$	—		$	57,303,743
Recognition of employee share options by the company (Note 13)		—	$	—	$	—		$	1,336,637		$	—		$	1,336,637		$	—		$	—		$	—		$	1,336,637
Net loss for the six months ended June 30, 2022		—	$	—	$	—		$	—		$	—		$	—		$	(25,971,668	)	$	—		$	—		$	(25,971,668	)

Total comprehensive loss for the six months ended June 30, 2022		—	$	—	$	—		$	—		$	—		$	—		$	(25,971,668	)	$	—		$	—		$	(25,971,668	)

BALANCE AT JUNE 30, 2022		348,723,365	$	63,019,962	$	213,098,729		$	9,660,390		$	44,579		$	222,803,698		$	(252,976,000	)	$	(178,948	)	$	—		$	32,668,712

The accompanying notes are an integral part of the condensed consolidated financial statements.

F-3

ASLAN PHARMACEUTICALS LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In U.S. Dollars, other than shares or share data, or otherwise noted)

(Unaudited)


	For the six months ended June 30
	2021			2022
CASH FLOWS FROM OPERATING ACTIVITIES
Loss before income tax	$	(12,418,507	)	$	(25,971,668	)
Adjustments for:
Depreciation expenses		141,321			140,492
Amortization expenses		504			2,060
Net gain on fair value changes of financial assets measured at fair value through profit or loss		(129,075	)		(104,001	)
Finance costs		614,902			1,960,321
Interest income		(157	)		(43,797	)
Compensation costs recognized of share-based payment transactions		2,329,874			955,673
Gain on dilution of subsidiary and recognition of associate		(2,307,735	)		—
Share of results of associate accounted for using equity method		81,880			312,372
Impairment loss of associate accounted for using equity method		—			50,109
Net gain on fair value changes of short-term investments measured at fair value through profit or loss		—			(30,846	)
Unrealized gain on foreign exchange, net		(192,176	)		(344,266	)
Changes in operating assets and liabilities
Decrease in other assets		424,837			1,368,600
(Decrease) Increase in trade payables		(272,771	)		6,326,120
Decrease in other payables		(1,531,218	)		(577,153	)

Cash used in operations		(13,258,321	)		(15,955,984	)
Interest received		157			43,797
Interest paid		(1,223,529	)		(1,000,096	)
Income tax paid		—			—

Net cash used in operating activities		(14,481,693	)		(16,912,283	)


CASH FLOWS FROM INVESTING ACTIVITIES
Payments for property, plant and equipment		(4,211	)		(17,707	)
Acquisition of intangible assets		(12,360	)		—
Purchase of short -term investments		—			(16,537,462	)
Proceeds from disposal or redemption of short-term investments		—			24,955
Increase in refundable deposits		(16,743	)		—

Net cash used in investing activities		(33,314	)		(16,530,214	)


CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long term borrowings		—			5,000,000
Repayment on long term borrowings		(3,250,000	)		—
Repayment of the principal portion of lease liabilities		(208,142	)		(149,007	)
Proceeds with new share capital		101,555,708			—
Proceeds from exercise of loan warrants		575,399			—
Proceeds from exercise of share options		214,500			—
Payments for transaction costs attributable to the issuance of ordinary shares		(4,576,671	)		—

Net cash generated from financing activities		94,310,794			4,850,993

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		79,795,787			(28,591,504	)

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD		14,324,371			90,167,967

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	$	94,120,158		$	61,576,463

Non-cash transactions

As disclosed in Note 9, the Company’s shareholding in Jaguahr Therapeutics Pte. Ltd in April 2021 was diluted as a result of which, the Company’s majority controlling interest was lost. However, the Company retains significant influence and thus the former subsidiary is recognised as an associated company. The foregoing is accounted for as a

non-cash

equity transaction, using the equity method.

The accompanying notes are an integral part of the condensed consolidated financial statements.

F-4

ASLAN PHARMACEUTICALS LIMITED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2022 AND 2021

(In U.S. Dollars, other than shares or share data, or otherwise noted)

(Unaudited)

1.	GENERAL INFORMATION

ASLAN Pharmaceuticals Limited (“ASLAN Cayman”) was incorporated in the Cayman Islands in June 2014 and is the listing vehicle for the listing on the Nasdaq Global Market sponsored with its issuance of American Depositary Shares (“ADS”) in the United States. ASLAN Cayman and its subsidiaries (collectively referred to as the “Company”) is a clinical-stage immunology focused biopharmaceutical company developing innovative treatments to transform the lives of patients.

The Company’s portfolio is led by

eblasakimab

(also known as ASLAN004), a potential

first-in-class

human monoclonal antibody that binds to the

IL-13

receptor, blocking signaling of two

pro-inflammatory

cytokines,

IL-4

and

IL-13

which are central to triggering symptoms of atopic dermatitis, such as redness and itching of the skin.

ASLAN Pharmaceuticals Pte. Ltd. was incorporated in Singapore in April 2010 and ASLAN Pharmaceuticals Limited was incorporated in Cayman Islands in June 2014 as the listing vehicle. The Company’s ADS have been listed on the Nasdaq Global Market since May 2018.

The Company has financed its operations to date primarily through the issuance of common shares. The Company has incurred net losses since inception. Please refer to Note 18 for details of the Company’s current fund raising activities.

Both the reporting and functional currency of the Company is the U.S. dollar.

2.	APPROVAL OF FINANCIAL STATEMENTS

The accompanying condensed consolidated financial statements were approved by the Company’s Audit Committee on August 12, 2022.

3.	APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

Amendments to the International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”) mandatorily effective for the current

reporting period

The Company has applied the amendments to IFRSs including

Amendments to IFRS 3 “

Reference to the Conceptual Framework

”, Annual Improvements to IFRS Standards 2018 – 2020 including IFRS 9 “

Fees in ‘10 Percent Test

’”, IFRS 16 “

Lease Incentives

”, and IAS 41 “

Taxation in fair value measurement

” which were issued by the IASB on or before April 30, 2022 effective for annual periods that began on or

after January 1, 2022. The

application of these amendments has had no significant impact on the disclosures or amounts recognized in the Company’s condensed consolidated financial statements.

F-5

New and revised IFRSs issued but not yet effective

Of the new, amended and revised standards and interpretations (collectively the “New IFRSs”) that have been issued but are not yet effective, the Company has not applied the following.


New IFRSs		Effective Date Announced by IASB (Note 1)
Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”		January 1, 2023 (Note 2)
IFRS 17 “Insurance Contracts”		January 1, 2023
Amendments to IFRS 17		January 1, 2023
Amendments to IAS 1 and IFRS Practice Statement 2 “Disclosure of Accounting Policies”		To be determined by IASB
Amendments to IAS 8 “Definition of Accounting Estimates”		January 1, 2023
Amendments to IAS 12 “Deferred Tax related to Assets and Liabilities arising from a Single Transaction”		January 1, 2023


Note 1:		Unless stated otherwise, the above New IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.

Note 2:		The effective date of Amendments to IAS 1 was deferred to January 1, 2023 from originally January 1, 2022. In November 2021, the IASB published the Exposure Draft: Non-current liabilities with Covenants (Proposed amendments to IAS 1) to propose further changes to requirements for classifying as current or non-current and to defer the effective date to no earlier than January 1, 2024.

As of the date the condensed consolidated financial statements were authorized for issue, the Company is continuously assessing the possible impact that the application of other standards and interpretations will have on the Company’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

F-6

4.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Statement of compliance

The condensed consolidated financial statements have been prepared in accordance with IAS 34 “

Interim Financial Reporting

”.

Basis of preparation

The condensed consolidated financial statements have been prepared on the historical cost basis except for financial instruments and other payable arising from cash-settled share-based payment arrangements which are measured at fair value.

Basis of consolidation

The condensed consolidated financial statements include the financial statements of the ASLAN Cayman and entities controlled by ASLAN Cayman (its subsidiaries). When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Company.

All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between the members of the Company are eliminated on consolidation.

Other significant accounting policies

The accounting policies applied in these condensed consolidated financial statements are the same as those applied in the Company’s consolidated financial statements as of and for the year ended December 31, 2021.

5.	CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In applying the Company’s accounting policies, which are described in Note 4, the directors are required to make judgements (other than those involving estimations) that have a significant impact on the amounts recognized and to make estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised if the revisions affect only that period or in the period of the revisions and future periods if the revisions affect both current and future periods.

For the critical accounting judgments and key sources of estimation uncertainty and assumption applied in the condensed consolidated financial statements, refer to the consolidated financial statements for the year ended December 31, 2021.

F-7

6.	CASH AND CASH EQUIVALENTS


	December 31, 2021		June 30, 2022
Cash in bank	$	90,167,967	$	48,056,304
Money market fund		—		10,120,088
Commercial paper		—		2,795,199
Corporate fixed income		—		604,872

	$	90,167,967	$	61,576,463

As disclosed in Note 13, the Company has raised $97.0 million (net proceeds) from the issuance of

ADS

in the 6 months period ended June 30, 2021.

February 2022

the Company engaged an asset management bank to obtain better returns on the Company’s cash with an initial portfolio size of $

30.0

million pursuant to Company’s Investment Policy. The Company classifies all highly liquid investments with stated maturities of three months or less from date of purchase as cash equivalents

as they were subject to an insignificant risk of changes in value.

The average coupon rate for the cash equivalents products ranged from

1.28

% to

2.15

% as of June

2022

7.	SHORT-TERM INVESTMENTS


	December 31,		June 30,
	2021		2022
Short-term investments	$	—	$	16,543,352

Following the asset management portfolio described in Note 6, the Company also purchased short-term investments pursuant to the Company’s Investment Policy during the six-months ended June 30, 2022. The short-term investments of the Company are primarily intended to facilitate liquidity and capital preservation. They consist predominantly of highly liquid investment-grade fixed-income securities with credit rating A- or higher, US Government securities, and financial money market fund, with maturities of less than six months. Thus, these short-term investments have been classified as financial assets at Fair Value Through Profit or Loss (“FVTPL”). The average coupon rate for the short-term investment products ranged

from 0.35% to 2% as of June 30, 2022.

8.	OTHER ASSETS


	December 31,		June 30,
	2021		2022
Current
Prepayments	$	2,733,753	$	2,160,016
Refundable deposits		879,093		84,230

	$	3,612,846	$	2,244,246

The prepayments are the advanced funds paid to the Company’s contract research organizations (“CROs”) for commencement of the Company’s clinical trials and related preparation work.

The refundable deposits are the receivables due from the Company’s CRO after the final reconciliation upon the project completion and office deposits refundable in normal business course. All refundable deposits are current as of December 31, 2021

and June 30, 2022.

F-8

9.	DETAILS OF SUBSIDIARIES THAT HAVE MATERIAL NON-CONTROLLING INTERESTS

On October 15, 2019, the Company established a joint venture with Bukwang Pharmaceutical Co., Ltd., a leading research and development focused Korean pharmaceutical company, to develop antagonists of the aryl hydrocarbon receptor (AhR). The Company at that time owned a controlling stake 55% of the joint venture entity, which is called Jaguahr Therapeutics Pte. Ltd.

On April 28, 2021

the Company’s shareholding was diluted from 55% to 35% resulting in a loss of control

The Company did not consolidate Jaguahr Therapeutics Pte. Ltd. as a subsidiary post dilution.

For the six months ended June 30, 2021, the Company recognized a loss of $268,964 from Jaguahr Therapeutics Pte. Ltd. representing the amount allocated to non-controlling interests

prior to the dilution. For the six months ended June 30, 2021, the company recognized a share of losses of $81,880 from Jaguahr Therapeutics Pte. Ltd. after the dilution.

Please refer to Note 10 for details.

10.	INVESTMENT IN ASSOCIATE COMPANY

Details of the material associate:


			Proportion of Ownership and Voting Rights Held by the Company
Name	Principal Activity	Principal Place of Business	December 31, 2021	June 30, 2022
Jaguahr Therapeutics Pte. Ltd.	New drug research and development	Singapore	35%	35%

On April 28, 2021

the Company’s shareholding was diluted from 55% to 35% resulting in a loss of control as further detailed above.

A gain on dilution of subsidiary of $2,307,735 represent

s 1

)

the classification of the capital reserve of $1,376,349,

non-controlling interest derecognised of $31,717 at the date of dilution and

35% of the fair value of net identifiable assets of Jaguahr Therapeutics Pte. Ltd. at the date of the dilution being recognised for the year ended December 31, 2021.

Summarized financial information of

Jaguahr Therapeutics Pte. Ltd.

is set out below. The summarized

financial information below represents amounts

in associate company financial statements prepared in accordance with IFRS


	December 31,			June 30,
	2021			2022
Current assets	$	1,384,013		$	720,107
Current liabilities		(113,674	)		(342,258	)

Equity	$	1,270,339		$	377,849

F-9


	For the Period Ended June 30
	2021			2022
Revenue	$	—		$	—


Loss for the period , representing total comprehensive loss for the period	$	(1,897,844	)	$	(892,490	)

Attributable to:
Stockholders of the Company	$	(1,628,880	)	$	(580,118	)
Non-controlling interests		(268,964	)		( 312,372	)

	$	(1,897,844	)	$	(892,490	)

Movements in investment in associate company are as follows:


	December 31,		June 30,
	2021		2022
Net assets of associate	$	1,270,339	$	377,849
Beginning balance	$	—	$	494,728
Share of results of associate accounted for using equity method		444,619		(312,372	)
Loss of interest at the date of dilution of shares in the associate		50,109		—
Impairment loss of associate accounted for using equity method		—		(50,109	)

Ending balance	$	494,728	$	132,247

11.	OTHER PAYABLES


	December 31,		June 30,
	2021		2022
Payables for cash-settled share-based payment transactions (Note 17)	$	701,582	$	320,618
Payables for salaries and bonuses		1,387,416		818,090
Interest payables		142,083		195,313
Payables for professional fees		507,340		470,570
Others		79,488		108,429

	$	2,817,909	$	1,913,020

F-10

12.	BORROWINGS


	December 31,		June 30,
	2021		2022
Long-term borrowings – Unsecured
Loans from government (a)	$	7,341,127	$	7,121,220
Other long-term borrowings (b)		19,521,647		25,210,306
Interest payables (a)		3,994,534		4,088,513

	$	30,857,308	$	36,420,039

Loans from government

On April 27, 2011, the Singapore Economic Development Board (EDB) awarded the Company a repayable grant (the “Grant”) not exceeding SGD10 million to support the Company’s drug development activities over a five-year qualifying period commencing February 24, 2011 (the “Project”). The Project was successfully implemented, resulting in substantially the full amount of the Grant being disbursed to the Company.

In the event any of the Company’s clinical product candidates achieve commercial approval after Phase 3 clinical trials, the Company will be required to repay the funds disbursed to the Company under the Grant plus interest of 6%.

Until the Company has fulfilled its repayment obligations under the Grant, the Company has ongoing update and reporting obligations to the EDB. In the event the Company breaches any of its ongoing obligations under the Grant, EDB can revoke the Grant and demand that the Company repay the funds disbursed to the Company under the Grant. There were no breaches as of December 31, 2021, and June 30, 2022.

As of December 31, 2021, and June 30, 2022, the ending balance of the EDB loan post valuation plus accrued interest we

re $11,335,661 and $11,209,733, respectively.

Other long-term borrowings

Loan and Security Agreement with K2 HealthVentures LLC

On July 12, 2021, ASLAN Pharmaceuticals Limited (the “Company”) and ASLAN Pharmaceuticals (USA) Inc. as borrowers entered into a Loan, Guaranty, and Security Agreement (the “K2HV Loan Agreement”) with K2 HealthVentures LLC (“K2HV”) as administrative agent, Ankura Trust Company, LLC as collateral agent. The borrowers’ obligations under the Loan Agreement are guaranteed by ASLAN Pharmaceuticals Pte. Ltd (“ASLAN Singapore”) and any future material subsidiaries and secured by substantially all of borrowers’, ASLAN Singapore’s and any future subsidiary guarantors’ assets, other than intellectual property.

The K2HV Loan Agreement provides for up to $45.0 million of delayed draw term loans, consisting of (i) the first tranche of $20.0 million available at closing, (ii) the second and third tranches in the aggregate amount of $10.0 million subject to the Company’s achievement of certain clinical milestones related to

farudodstat

(also known as ASLAN003) and

eblasakimab

(also known as ASLAN004) and (iii) an uncommitted fourth tranche of up to $15.0 million.

The term loans bear interest at a floating rate equal to the greater of (i) the prime rate published by Wall Street Journal plus

5.00

% and (ii) 8.25% per annum. The monthly payments are interest-only until August 1, 2023, which may be extended to August 1, 2024, upon the Company’s achievement of certain clinical milestones. Subsequent to the interest-only period, the term loans will be payable in equal monthly installments of principal plus accrued and unpaid interest, through the maturity date which is July 1, 2025. The Company paid the lenders a

one-time

$255,000 facility fee at closing and will be obligated to pay for an additional facility fee equal to 0.85% of any term loans borrowed under the fourth tranche. In addition, the Company is obligated to pay a final payment fee of 6.25% of the original principal amount of the term loans at the maturity date. The Company may elect to prepay all, but not less than all, of the term loans prior to the term loan maturity date, subject to a prepayment fee of up to 3.0% of the then outstanding principal balance. After repayment, no term loans may be borrowed again.

F-11

On July 12, 2021, the full first tranche of $20.0

million available at closing was drawn down. Due to the K2 Warrant described below, the fair value of the first tranche loan on July 12, 2021, wa

s $19,311,676. Subsequent to the interest-only period from July 1, 2021, to July 31, 2023, the term loans will be payable in equal monthly instalments of principal plus accrued and unpaid interest, through the maturity date which is July 1, 2025. However, the interest-only period can be extended up to 36 months from the loan closing upon announcement of the achievement of positive data for the Company’s Phase 2b clinical study of

eblasakimab

in atopic dermatitis which is supportive of continued clinical advancement with a commercially viable product profile, as determined by K2HV in its reasonable discretion.

Borrowings under the K2HV Facility are secured with a pledge of the borrowers’ equity interests in subsidiaries and collateral over all of the Company’s cash, goods, and other personal property, with the exception of (i) the Company’s registered intellectual property assets, (ii) personal property to the extent that granting of security over any such personal property would constitute a breach of or result in the termination of, or require any consent not obtained under, any license, agreement, instrument or other document evidencing or giving rise to such property, or is otherwise prohibited by any requirement of law, and (iii) the Company’s equity interests in JAGUAHR. Such pledge and collateral may be enforced only if there has been an event of default as stipulated in the loan agreement. As of June 30, 2022, the Company is in full compliance with the loan agreement and there have been no events of default.

In connection with the closing of the loan facility, the Company issued a warrant to purchase ordinary shares (the “K2 Warrant”) to K2HV. The number of ordinary shares exercisable under the K2 Warrant equals (i) 2.95% of the aggregate term loan advances made to the Company from time to time divided by (ii) the warrant price of $0.5257 per ordinary share (equivalent to $2.6285 per ADS). The K2 Warrant also includes a cashless exercise feature allowing the holder to receive shares underlying the warrant in an amount reduced by the aggregate exercise price that would have been payable upon exercise of the warrant for such shares. The K2 Warrant is exercisable until its expiration on July 12, 2031. The total proceeds attributed to the K2 Warrant was approximately $688,324

based on the relative fair value as of the date of the drawdown. As the number of ADS to be issued under the cashless method will continue to vary dependent to the share price of the Company, the K2 Warrants do not meet the equity classification and are classified as liability and fair valued though profit and loss. As of December 31, 2021 and June 30 2022, the fair value of the K2 Warrant was revalued t

o $223,352 and $119,351 respectively, with the difference of $104,001

being recorded as profit in other gains. See Note 20 for more detail on assumptions used in the valuation of the K2 warrant.

On January 5, 2022, the Company drew down the second tranche $5 million in full of the loan facility provided by K2HV pursuant to the Loan Agreement. The second tranche milestone was completed, and the full funds were received on February 4, 2022. As a result of the drawdown of the second tranche of the loan facility, the number of ordinary shares exercisable under the K2 Warrant increased to 1,402,891 (representing 280,578 ADS), based on the 2.95% coverage of the total drawdown facility $25 million, being the aggregate term loan advances at that date, divided by the warrant price of $0.5257 per ordinary share (equivalent to $2.6285 per ADS). As of June 30, 2022, K2HV did not exercise any warrants.

F-12

13.

EQUITY

Ordinary shares


	December 31,		June 30,
	2021		2022
Number of ordinary shares authorized		500,000,000		500,000,000
Authorized par value of per share	$	0.01	$	0.01
Number of ordinary shares issued and fully paid		348,723,365		348,723,365
Number of equivalent ADS issued and fully paid		69,744,673		69,744,673
Amount of ordinary shares authorized	$	5,000,000	$	5,000,000
Amount of share capital par value issued and fully paid	$	63,019,962	$	63,019,962
Amount of share capital surplus issued and fully paid	$	213,098,729	$	213,098,729

Issuance of new ADS

As of December 31, 2021, the Company had raised total net proceeds $21.5 million by issuing 44,314,860 ordinary shares (representing 8,862,972 ADS) under the ATM Sales Agreement of which 19,720,500 ordinary shares (representing 3,944,100 ADS) were issued from October 9, 2020 through December 31, 2020 for net proceeds of $7.4 million and 24,594,360 ordinary shares (representing 4,918,872 ADS) were issued during the year ended December 31, 2021, for net proceeds of $14.1 million. As of December 31, 2021, the Company had $62.8 million in proceeds available for sale under this ATM Sales Agreement.

During the period ended June 30, 2022, there were no issuance of ordinary shares/ADS.

14.	LOSS BEFORE INCOME TAX

General and administrative expenses


	June 30,		June 30,
	2021		2022
General and administrative expenses	$	6,893,836	$	4,855,050

General and administrative expenses primarily related to employee expenses of employees other than those involved in research and development and professional fees. There were no changes in the nature of general and administrative expenses.

Research and development expenses


	June 30,		June 30,
	2021		2022
Research and development expenses	$	7,795,493	$	19,339,045

Research and development expenses related to preclinical and clinical development work, manufacturing and employee expenses of employees involved in research and development. There were no changes in the nature of research and development expense. The increase was driven by clinical development expenses and manufacturing costs related to

eblasakimab

and the

TREK-AD

Phase 2b trial, and higher headcount required in research and development work.

Other income


	June 30,		June 30,
	2021		2022
ADS issuance contribution	$	309,527	$	—
Short-term investment valuation gain		—		30,191
Government grants for research and development expenditures