0001624422-23-000007 | 20-F | XBRL Viewer

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COVER	12 Months Ended
COVER	Dec. 31, 2022 shares
Document Information [Line Items]
Document Type	20-F
Document Registration Statement	false
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Document Shell Company Report	false
Entity File Number	001-38281
Entity Registrant Name	ERYTECH Pharma S.A.
Entity Incorporation, State or Country Code	I0
Entity Address, Address Line One	60 Avenue Rockefeller
Entity Address, Postal Zip Code	69008
Entity Address, City or Town	Lyon
Entity Address, Country	FR
Title of 12(b) Security	Ordinary shares, nominal value €0.10 per share
Trading Symbol	ERYP
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding	31,018,553
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Document Accounting Standard	International Financial Reporting Standards
Entity Shell Company	false
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Entity Central Index Key	0001624422
American Depositary Shares, each representing one ordinary share, nominal value €0.10 per share
Document Information [Line Items]
Title of 12(b) Security	American Depositary Shares, each representing oneordinary share, nominal value €0.10 per share
Trading Symbol	ERYP
Security Exchange Name	NASDAQ
Business Contact
Document Information [Line Items]
Entity Address, Address Line One	60 Avenue Rockefeller
Entity Address, Postal Zip Code	69008
Entity Address, City or Town	Lyon
Entity Address, Country	FR
Contact Personnel Name	Gil Beyen
City Area Code	33
Local Phone Number	4 78 74 44 38
Contact Personnel Fax Number	4 78 75 56 29

AUDIT INFORMATION	12 Months Ended
AUDIT INFORMATION	Dec. 31, 2022
Auditor Information [Abstract]
Auditor Name	KPMG S.A.
Auditor Location	Lyon, France
Auditor Firm ID	1253

CONSOLIDATED STATEMENT OF INCOME (LOSS) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Profit or loss [abstract]
Revenues	€ 0	€ 0	€ 0
Other income	30,998	4,180	3,718
Operating income	30,998	4,180	3,718
Research and development	(19,907)	(45,100)	(57,580)
General and administrative	(13,887)	(15,595)	(14,970)
Operating expenses	(33,794)	(60,695)	(72,550)
Operating loss	(2,796)	(56,515)	(68,832)
Financial income	4,453	5,422	889
Financial expenses	(1,364)	(2,702)	(5,354)
Financial income (loss)	3,089	2,720	(4,465)
Income tax	(521)	(2)	(3)
Net loss	€ (228)	€ (53,797)	€ (73,300)
Basic loss per share (€/share)	€ (0.01)	€ (2.27)	€ (3.99)
Diluted loss per share (€/share)	€ (0.01)	€ (2.27)	€ (3.99)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of comprehensive income [abstract]
Net loss	€ (228)	€ (53,797)	€ (73,300)
Elements that may be reclassified subsequently to income (loss)
Currency translation adjustment	187	(528)	400
Elements that may not be reclassified subsequently to income (loss)
Remeasurement of defined benefit liabilities	235	68	(19)
Tax effect	0	0	0
Other comprehensive income (loss)	422	(460)	381
Total comprehensive income (loss)	€ 194	€ (54,257)	€ (72,919)

- Definition

The amount of change in equity resulting from transactions and other events, other than those changes resulting from transactions with owners in their capacity as owners.

+ References + Details

- Definition

The total of income less expenses from continuing and discontinued operations, excluding the components of other comprehensive income. [Refer: Other comprehensive income]

+ References

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+ Details

CONSOLIDATED STATEMENT OF FINANCIAL POSITION - EUR (€) € in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Non-current assets
Intangible assets	€ 5	€ 15	€ 589
Property, plant and equipment	393	18,960	20,862
Right of use	2,584	6,869	8,228
Other non-current assets	195	876	1,091
Total non-current assets	3,177	26,720	30,770
Current assets
Inventories	0	0	0
Trade and other receivables	76	12	4
Other current assets	3,769	6,337	5,182
Cash and cash equivalents	38,789	33,699	44,446
Total current assets	42,634	40,048	49,632
TOTAL ASSETS	45,811	66,768	80,402
Shareholders’ equity
Share capital	3,102	3,102	2,006
Premiums related to share capital	48,975	97,618	120,705
Reserves	(29,765)	(25,293)	(24,616)
Translation reserve	1,402	1,215	1,744
Net loss for the period	(228)	(53,797)	(73,300)
Total shareholders’ equity	23,487	22,845	26,539
Non-current liabilities
Provisions - non-current portion	419	524	652
Financial liabilities – non-current portion	7,547	15,232	14,379
Derivative liabilities - non current portion	0	0	288
Lease liabilities - non-current portion	2,680	8,162	9,197
Deferred tax	0	0	0
Total Non-current liabilities	10,646	23,918	24,516
Current liabilities
Provisions - current portion	314	0	0
Financial liabilities – current portion	2,565	164	2,265
Derivative liabilities - current portion	0	0	129
Lease liabilities - current portion	775	1,817	1,607
Trade and other payables	5,115	14,154	20,910
Other current liabilities	2,909	3,870	4,436
Total current liabilities	11,678	20,005	29,347
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	€ 45,811	€ 66,768	€ 80,402

CONSOLIDATED STATEMENT OF CASH FLOWS - EUR (€)
€ in Thousands

12 Months Ended

Dec. 31, 2022

Dec. 31, 2021

Dec. 31, 2020

Cash flows from operating activities

Net loss

€ (228)

€ (53,797)

€ (73,300)

Reconciliation of net loss and the cash used for operating activities

Gain or loss on exchange

(510)

(3,570)

3,028

Amortization and depreciation

4,619

5,377

4,991

Provision

445

135

Extinguishment of conditional advance

(4,895)

Change in fair value of derivative liabilities

(1,175)

(652)

447

1,323

1,179

(Gain) or loss on disposal of property plant and equipment (1)

^[1]

(23,893)

Interest expense (income)

(169)

2,073

2,150

Income tax expense (income)

521

Operating cash flow before change in working capital

(23,663)

(49,615)

(62,522)

(Increase) decrease in inventories

358

(Increase) decrease in trade and other receivables

(63)

(8)

(Increase) decrease in other current assets

2,734

(94)

2,829

Increase (decrease) in trade and other payables

(9,220)

(6,477)

6,913

Increase (decrease) in other current liabilities

(1,548)

(574)

669

Change in working capital

(8,098)

(7,153)

10,802

Income tax paid

(3)

(2)

Net cash flow used in operating activities

(31,764)

(56,770)

(51,720)

Cash flows from investing activities

Acquisition of property, plant and equipment

(85)

(298)

(1,139)

Acquisition of intangible assets

(2)

Increase in non-current & current financial assets

(5)

(192)

(421)

Disposal of property, plant and equipment

37,630

Decrease in non-current & current financial assets

586

145

Net cash flow from/(used in) investing activities

38,127

(345)

(1,475)

Cash flows from financing activities

Capital increases, net of transaction costs

34,631

118

Subscription of warrants

Proceeds from borrowings, net of transaction costs

3,081

12,157

27,134

Repayment of borrowings

(3,081)

(62)

Allowance received from a lessor

188

Repayment of lease liability (IFRS 16)

(1,545)

(1,702)

(1,615)

Interests received (paid)

(223)

(374)

(326)

Net cash flow from (used in) financing activities

(1,768)

44,712

25,449

Exchange rate effect on cash in foreign currency

495

1,656

(981)

Increase (Decrease) in cash and cash equivalents

5,090

(10,747)

(28,727)

Net cash and cash equivalents at the beginning of the period

33,699

44,446

73,173

Net cash and cash equivalents at the closing of the period

38,789

33,699

44,446

Cash paid for interest

€ 223

€ 374

€ 326

[1]	including €24,350 thousand related to Catalent sale of Princeton manufacturing facility (see note 3.1) and disposal of other equipment for €457 thousand (see note 4.1.2).

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - EUR (€)
€ in Thousands

Total

Share capital

Premiums related to the share capital

Reserves

Translation reserve

Net income (loss)

Beginning balance at Dec. 31, 2019

€ 85,560

€ 1,794

€ 281,688

€ (136,607)

€ 1,344

€ (62,659)

Net loss for the period

(73,300)

Other comprehensive income

381

(19)

400

Total comprehensive income (loss)

(72,919)

(19)

400

(73,300)

Allocation of prior period loss

(54,208)

(8,451)

62,659

Allocation of reserves on premiums

(119,282)

119,282

Issue of ordinary shares

12,719

212

12,507

Share-based payment

1,179

Ending balance at Dec. 31, 2020

26,539

2,006

120,705

(24,616)

1,744

(73,300)

Net loss for the period

(53,797)

Other comprehensive income

(460)

(528)

Total comprehensive income (loss)

(54,257)

(528)

(53,797)

Allocation of prior period loss

^[1]

(71,037)

(2,263)

73,300

Issue of ordinary shares

^[2]

52,842

1,096

51,746

1,323

195

^[3]

(3,811)

Ending balance at Dec. 31, 2021

22,845

3,102

97,618

(25,293)

1,215

(53,797)

Net loss for the period

(228)

Other comprehensive income

422

235

187

Total comprehensive income (loss)

194

235

187

(228)

Allocation of prior period loss

^[1]

(48,643)

(5,154)

53,797

Share-based payment

447

Ending balance at Dec. 31, 2022

€ 23,487

€ 3,102

€ 48,975

€ (29,765)

€ 1,402

€ (228)

[1]	For each of the year presented the standalone net loss of Erytech Pharma SA has been allocated to the Premiums pursuant to a shareholders meeting decision.
[2]	of which €31,826 thousand as result of the Registered Direct Offerings in April (€24,867 thousand) and in December 2021 (€6,957 thousand) ; €6,616 thousand related to the ATM and €14,400 thousand related to the conversion of five tranches of OCABSA.
[3]	Related to capital increase

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical)
€ in Thousands

1 Months Ended

12 Months Ended

Dec. 31, 2021

EUR (€)

Apr. 30, 2021

EUR (€)

Dec. 31, 2021

EUR (€)

tranch

Issue of ordinary shares

^[1]

€ 52,842

Repayment

€ 14,400

Number of tranches of borrowings issued | tranch

Registered Offering

Issue of ordinary shares

€ 6,957

€ 24,867

€ 31,826

At-The-Market Offering

Issue of ordinary shares

€ 6,616

[1]	of which €31,826 thousand as result of the Registered Direct Offerings in April (€24,867 thousand) and in December 2021 (€6,957 thousand) ; €6,616 thousand related to the ATM and €14,400 thousand related to the conversion of five tranches of OCABSA.

CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) € in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2022 EUR (€)
Cell Therapy Manufacturing Facility
Disclosure of detailed information about property, plant and equipment [line items]
Gains on disposals of property, plant and equipment	€ 24,300
Other Disposals
Disclosure of detailed information about property, plant and equipment [line items]
Losses on disposals of property, plant and equipment	€ 457

DESCRIPTION OF THE BUSINESS	12 Months Ended
DESCRIPTION OF THE BUSINESS	Dec. 31, 2022
Disclosure Of Description Of Business [Abstract]
DESCRIPTION OF THE BUSINESS	DESCRIPTION OF THE BUSINESS ERYTECH Pharma S.A. (“ERYTECH,” and together with its subsidiary the “Company”) is incorporated in Lyon, France, and was founded in 2004 to develop and market innovative red blood cell-based therapeutics for cancer and orphan diseases. The Company completed its initial public offering on Euronext Paris in May 2013, raising €17.7 million, and on the Nasdaq Global Select Market in November 2017, raising €124.0 million ($144.0 million on a gross basis before deducting offering expenses). The Company has incurred losses and negative cash flows from operating activities since its inception and had shareholders’ equity of €23,487 thousand as of December 31, 2022 as a result of several financing rounds, including an initial public offering. The Company anticipates incurring additional losses until such time, if ever, that it can generate significant revenue from its product candidates in development. The Company’s future operations are highly dependent on a combination of factors, including: (i) the success of its proposed merger with Pherecydes (strategic partnership, refer to note 2.9) ; (ii) the success of the research and development of this newly formed "Combined Company"; (iii) regulatory approval and market acceptance of the "Combined Company" proposed future products; (iv) the timely and successful completion of additional financing; and (v) the development of competitive therapies by other biotechnology and pharmaceutical companies. As a result, the Company is and should continue, in the short to mid-term, to be financed through the issuance of new debt or equity instruments. The situation on the financial markets and uncertainty in the research and development result may impair the ability of the Company to raise capital when needed or on attractive terms. The accompanying consolidated financial statements and related notes (the “Consolidated Financial Statements”) present the operations of ERYTECH Pharma S.A. and its subsidiary, ERYTECH Pharma, Inc. Registered office of ERYTECH Pharma S.A.: 60 avenue Rockefeller, 69008, Lyon, France. Major events of 2022 Business February 2022: Impact of the Conflict in Ukraine on Our Business Beginning on February 24, 2022, Russia significantly intensified its military operations in Ukraine. We are closely monitoring developments in the current context and will take appropriate measures as necessary. The war in Ukraine did not impact our financial results for the period ended on December 31, 2022. Our business does not conduct any trial in Ukraine, Russia or Belarus and does not have any asset or vendors located in these regions. April 2022: •Sale of ERYTECH’s U.S. cell therapy manufacturing facility to Catalent Under the terms of an asset purchase agreement between the Group ERYTECH and Catalent (the “APA”), Catalent agreed to acquire ERYTECH’s state-of-the-art commercial-scale cell therapy manufacturing facility in Princeton, New Jersey, for a total gross consideration of $44.5 million (€40.7 million) paid at closing. Catalent has extended offers of employment to approximately 40 people employed by Erytech at the Princeton facility. The net profit on the sale of the property, plant and equipments, lease contract, after transaction cost ( $3.3 million, €3.0 million) and before tax amounts to 26.6 million dollars (€24.3 million euros) and was recorded as other income in the consolidated statement of income (loss) . •New vesiculation technology The company presented its red blood cell vesiculation technology at the 24th Meeting of the European Red Cell Society (ERCS) in April 2022. May 2022: •The NOPHO trial evaluated the safety and pharmacological profile of eryaspase in acute lymphoblastic leukemia (ALL) patients who had previously experienced hypersensitivity reactions to pegylated asparaginase therapy. In December 2020, positive trial results were presented at the 2020 American Society of Hematology annual meeting. See section 2.2. – activities of the Group and 2.5 - events after the reporting period for further information. •Following the Catalent transaction, the company continues to evaluate other strategic options for leveraging its ERYCAPS® platform with complementary assets and/or a broader corporate transaction. •On May 25, 2022, the management of Erytech Pharma (France) informed the employees of the start of a collective redundancy procedure, a job protection plan, involving the cuts of 52 positions out of 109. The consultation phase of the CSE has ended on July 31, 2022. All terminations took place during the fourth quarter 2022. July /August 2022: ERYTECH Pharma announced that it no longer seek approval for Graspa® in hypersensitive acute lymphoblastic leukemia (ALL) following feedback from the U.S. Food and Drug Administration (FDA). Following the sale of its production facility in Princeton, New Jersey, for $44.5 million in April 2022, the Company appointed a specialized advisor to evaluate strategic options to leverage its ERYCAPS® platform with complementary assets and/or a broader corporate transaction. October 2022 ERYTECH announced Receipt of Nasdaq Notice dated October 7, 2022, indicating that, based upon a closing bid price of less than $1.00 per share for the Company’s American Depositary Shares (“ADSs”) for the prior 30 consecutive business day period, the Company no longer satisfies Nasdaq Listing Rule 5450(a)(1). The Notification Letter has no immediate effect on the listing of the ADSs and ERYTECH. ERYTECH intends to regain compliance within the applicable compliance period and is currently evaluating its options to do so. During this time, the Company’s ADSs will continue to be listed and trade on The Nasdaq Global Select Market and the Company’s business and operations are not affected by the receipt of the Notification Letter. November 2022 •Graspa program halted after FDA feedback on envisaged BLA submission in hypersensitive ALL Considering also the earlier setback of a failed Phase 3 trial in pancreatic cancer, and a non-conclusive early readout of first patients in a Phase 2 trial in TNBC, both with the same product candidate, ERYTECH concluded to halt further development with Graspa®, L-asparaginase encapsulated in donor red blood cells, until then the lead candidate for ERYTECH, and focus on its most promising preclinical programs. •Promising preclinical development with ERYCEVTM, novel red blood cell vesiculation technology RBC-derived extracellular vesicles are formed naturally during senescence and storage of mature RBCs and are a potentially attractive drug delivery system. Vesiculation of RBCs that have already been loaded with active therapeutic compounds utilizing the ERYCAPS® process, entails the potential of producing cargo-loaded RBC-derived extracellular vesicles for the development of novel therapeutic approaches. ERYCEV results to date illustrate the versatility of ERYTECH’s encapsulation science in RBCs and its potential for leverage in further partnered developments. •In connection with the halt of the Company’s lead program Graspa, a restructuring program was initiated earlier this year. Those deep restructuring operations are fully implemented at the end of 2022. The staff reduction in France was approved by labor authorities in September 2022 and is fully implemented. Combined with the approximately 40 people who transferred to Catalent after the sale of the Company’s manufacturing facility in Princeton, the global team size was reduced by 75% compared to the start of this year. The Company has retained its R&D team and its expertise in key functional areas to keep the ability to restart a pipeline of partnered development programs and maintain a fully operational dual listed company. Major events of 2021 Business March 2021 •On March 2,2021, ERYTECH has called a 6th OCABSA tranche for net proceeds of €2.9 million and has made a placement of 744,186 newly issued shares in the United States through its at-the-market ((ATM) equity financing program for the net proceeds of €6.4 million. April 2021 •The company announced a $30.0 million Registered Direct Offering, after entering into definitive agreements with specified categories of investors for the purchase and sale of 1,034,483 units (“Units”), each Unit consisting of four ordinary shares in the form of American Depositary Shares (each an “ADS”) and three warrants, each to purchase one ordinary share (each a “Warrant”).The issuance of the 4,137,932 new ordinary shares underlying the ADSs resulted in an immediate capital increase of €24,868,971.30 (divided into a nominal amount of €413,793.20 and a total issuance premium of €24,455,178.10 and corresponding to a nominal value of ten cents (€0.10) plus an issuance premium of €5.91 per share issued), representing approximately 19.12% of the Company’s share capital and voting rights outstanding before the offering. May 2021 •On May 19,2021, ERYTECH has called a 7th OCABSA tranche for net proceeds of €2.9 million •July and August 2021 •The U.S. Food and Drug Administration (FDA) granted eryaspase Fast Track designation for the treatment of acute lymphocytic leukemia (ALL) patients who have developed hypersensitivity reactions to E. coli-derived pegylated asparaginase (PEG-ASNase).On July 22, 2021 and August 24, 2021, ERYTECH has called a 8th and 9th OCABSA tranches for net proceeds of €5.7 million. October 2021 •The Company announced Maximum Tolerated Dose Declared in a Phase 1 Investigator Sponsored Trial of Eryaspase in First-Line Pancreatic Cancer •The Company announced Results from TRYbeCA-1 Phase 3 Trial of Eryaspase in Patients with Second-line Advanced Pancreatic Cancer. The trial did not meet its primary endpoint of overall survival. December 2021 •The Company announced $7.85 million Registered Direct Offering, after entering into definitive agreements with specified categories of investors for the purchase and sale of 769,608 units (“Units”), each Unit consisting of four ordinary shares in the form of American Depositary Shares (each an “ADS”) and three warrants, each to purchase one ordinary share (each a “Warrant”). The issuance of the 3,078,432 new ordinary shares underlying the ADSs will result in an immediate capital increase of €6,957,256.32 (divided into a nominal amount of €307,843.20 and a total issuance premium of €6,649,413.12 and corresponding to a nominal value of ten cents (€0.10) plus an issuance premium of €2.16 per Share issued), representing approximately 11.02% of the Company’s share capital and voting rights outstanding before the offering. Major events of 2020 Business February 2020: •The Company received from Bpifrance a reimbursable advance of €2,979 thousand and a subsidy of €294 thousand (recorded in 2019) under the milestone n°6 of the TEDAC project. •The Company entered into a strategic partnership with the German Red Cross Blood Donor Service Baden-Württemberg-Hessen (GRCBDS) for the supply of donor red blood cells to manufacture its product candidates, including eryaspase, in Europe and to complement the existing alliance with the French Blood Bank (EFS). March 2020: •The TRYbeCA-1 trial has continued to progress despite the challenges caused by the impact of the COVID-19 global pandemic, and patient enrollment has continued notwithstanding the increasing difficulties experienced by hospitals to organize the proper treatment and follow-up. •The independent data monitoring committee (IDMC) of the TRYbeCA-1 trial reviewed the safety data of the first 320 patients enrolled and treated. In line with the two earlier safety reviews of the trial, no safety issues were identified, and the IDMC recommended the Company to continue the trial as planned. April 2020: •The U.S. Food and Drug Administration (FDA) has granted the Company Fast Track Designation for the development of eryaspase as a second-line treatment of patients with metastatic pancreatic cancer. May 2020: •The Company announced it will be part of EVIDENCE, a public-private consortium supported by the European Union in the framework of the EU Horizon 2020 program. The EVIDENCE consortium, consisting of leading experts in the field of red blood cell research, will explore how red blood cells are influenced by their extra-cellular environment. June 2020: •The Company announced that the ongoing Phase 2 clinical trial, sponsored by the Nordic Society of Paediatric Haematology and Oncology (NOPHO) of eryaspase in second-line acute lymphoblastic leukemia (ALL) patients has reached its target enrollment of 50 patients. Preliminary findings of the trial suggest that eryaspase achieved the target level and duration of asparaginase activity in these patients. Moreover, the addition of eryaspase to the combination chemotherapy was associated with an acceptable tolerability profile, enabling the majority of these patients to receive their fully intended courses of asparaginase. Recent data have confirmed that discontinuation of asparaginase therapy in ALL patients has been associated with inferior disease free survival. •The Company signed a financing agreement with Luxembourg-based European High Growth Opportunities Securitization Fund, represented by its asset manager European High Growth Opportunities Manco SA (entities related to Alpha Blue Ocean), in the form of convertible notes with share subscription warrants attached (“OCABSA”), allowing a potential financing arrangement of up to a maximum of €60 million, subject to the regulatory limit of 20% dilution. July/August 2020: •As part of the convertible notes’ agreement signed in June 2020, the Company issued two tranches of €3 million each (60 OCABSA) on July 6, 2020 and on August 24, 2020, respectively. September 2020: •The Company established a financing facility with the implementation of an at-the-market program on Nasdaq with Cowen allowing the Company to issue and sell ordinary shares in the form of American Depositary Shares ("ADSs"), to eligible investors at market prices, with aggregate gross sales proceeds of up to $30 million (subject to a regulatory limit of 20% dilution), from time to time, pursuant to the terms of a sales agreement. November 2020: •The Company received two loans of €5.0 million each, in the form of State-Guaranteed Loan (Prêt Garanti par l’Etat, or PGE, in France) with Bpifrance and Société Générale in the context of the COVID-19 pandemic. November/December 2020: •As part of the convertible notes’ agreement signed in June 2020, the Company issued three tranches of €3.0 million each (60 OCABSA) on November 17, 2020, December 7, 2020 and December 22 , respectively. December 2020: •The Company announced positive results from eryaspase Phase 2 Trial in Acute Lymphoblastic Leukemia ("ALL"). The study confirms the potential of eryaspase as an attractive treatment option for ALL patients with hypersensitivity to PEG-asparaginase. The Phase 2 NOR-GRASPALL-2016 trial evaluated the safety and pharmacological profile of eryaspase in ALL patients who had previously experienced hypersensitivity reactions to pegylated asparaginase therapy. The trial was conducted by the Nordic Society of Pediatric Hematology and Oncology (NOPHO). Primary objectives of the trial were asparaginase enzyme activity and safety. Both endpoints were met. •The Company announced the completion of enrollment in the TRYbeCA-1 Phase 3 trial in second-line pancreatic cancer. Management March 2020: •Appointment of Melanie Rolli, M.D., as member of the Company’s Board of Directors. October 2020: •Appointment of Stewart Craig as Chief Technical Officer

ACCOUNTING RULES AND METHODS

12 Months Ended

Dec. 31, 2022

Disclosure Of Accounting Policies [Abstract]

ACCOUNTING RULES AND METHODS

ACCOUNTING RULES AND METHODSBasis of preparation

The Consolidated Financial Statements have been prepared in accordance with the underlying assumptions of going concern. The Company’s loss-making situation is explained by the innovative nature of the products developed, therefore involving a multi-year research and development phase.

The Company has historically financed its growth by strengthening its equity in the form of capital increases and issuance of convertible notes.

The Board of Directors authorized the consolidated financial statements on a going concern basis as the Company will be able to fund its operations beyond the next 12 months after the closing date, considering:

•Cash and cash equivalents held by the Company amounted to €38.8 million as of December 31, 2022. They are composed of cash and term deposits readily available without penalty;

•The cash consumption forecast for the next 12 months after the closing date.

In the longer term, the Company will have to find additional funding. Various financing sources are considered among which the issuance of new debt or equity instruments and partnership agreements.

The Consolidated Financial Statements have been prepared in accordance with the historical cost principle with the exception of certain categories of assets and liabilities measured at fair value in accordance with IFRS.

All amounts are expressed in thousands of euros, unless stated otherwise.

Statement of compliance

The Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standard Board (“IASB”) and were authorized for issuance by the Board of Directors of the Company on March 22, 2023. They will be subject to the approval of the General Meeting on June 23, 2023.

Due to the listing of ordinary shares of the Company on Euronext Paris and in accordance with the European Union’s regulation No. 1606/2002 of July 19, 2002, the Consolidated Financial Statements of the Company are also prepared in accordance with IFRS, as adopted by the European Union (EU).

As of December 31, 2022, all IFRS that the IASB had published and that are mandatory are the same as those endorsed by the EU and mandatory in the EU. As a result, the Consolidated Financial Statements comply with International Financial Reporting Standards as published by the IASB and as adopted by the EU.

IFRS include International Financial Reporting Standards (“IFRS”), International Accounting Standards (“IAS”), as well as the interpretations issued by the Standing Interpretations Committee (“SIC”), and the International Financial Reporting Interpretations Committee (“IFRS IC”). The main accounting methods used to prepare the Consolidated Financial Statements are described in the corresponding notes. These methods were used for all periods presented.

The new applicable standards, amendments and interpretations since January 1, 2022 have had no significant impact on the Company’s consolidated financial statements.

Recently issued accounting pronouncements that may be relevant to the Company’s operations are as follows:

•Amendments to IAS 1 - Classification of liabilities as current or non-current; Disclosure of Accounting Policies, effective on January 1, 2024;

•Amendments to IAS 8 - Definition of Accounting Estimates, effective on January 1, 2023 .

The Company does not expect any significant impact resulting from the future adoption of these standards

Basis of consolidation

In accordance with IFRS 10 Consolidated Financial Statements (“IFRS 10”), an entity is consolidated when it is controlled by the Company. The Company controls an entity when it is exposed or has rights to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. All intercompany balances, transactions and dividends are eliminated in full. The Company has one subsidiary for which no non-controlling interest is recognized.

Date of Incorporation

Percent of Ownership Interest

Accounting Method

ERYTECH Pharma, Inc.

April 2014

100%

Consolidated

There was no change in the consolidation scope over the years presented.

Foreign currencies

Functional Currency and Translation of Financial Statements into Presentation Currency

The Consolidated Financial Statements are presented in euros, which is also the functional currency of the parent company, ERYTECH Pharma S.A. (the “Parent Company”). The statement of financial position of the consolidated entity having a functional currency different from the euro are translated into euros at the closing exchange rate (spot exchange rate at the statement of financial position date) and the statement of income (loss), statement of comprehensive income (loss) and statement of cash flow of such consolidated entity are translated at the average exchange rate for the period, except if exchange rates or the volume and size of transactions fluctuate significantly. The resulting translation adjustment is included in other comprehensive income (loss) as a cumulative translation adjustment.


Exchange rate (USD per EUR)	12/31/2020	12/31/2021	12/31/2022
Weighted average rate	1.1413	1.1835	1.0539
Closing rate	1.2271	1.1326	1.0666

Conversion of Foreign Currency Transactions

Foreign currency transactions are converted to functional currency at the exchange rate applicable on the transaction date. At the closing date, foreign currency monetary assets and liabilities are converted at the exchange rate prevailing on that date. The resulting exchange gains or losses are recorded in the consolidated statement of income (loss) in “Financial income (loss)”.

Use of estimates and judgments

Preparation of the consolidated financial statements in accordance with the rules prescribed by the IFRS requires the use of estimates and the formulation of assumptions having an impact on the financial statements. These estimates can be revised where the circumstances on which they are based change. The actual results may therefore differ from the estimates initially formulated. The Company has not identified any environmental risks that would require significant new estimates or judgments. The use of estimates and judgment relate primarily to the measurement of:

•the hospital costs accrual (see note 4.10).

•recoverable value of right-of-use and tangible fixed assets (see note 4.1 and 4.2).

•the share-based payments in accordance with IFRS 2 (see note 3.3.3);

•the fair value of the convertible notes' agreement and its classification in accordance with IFRS 9 and IAS 32 (see note 4.8.1);

Presentation of the statement of income (loss) & statement of financial positionThe Company presents its statement of income (loss) by function. As of today, the main activity of the Company is the research and development. Consequently, only “research and development expenses” and “general administrative expenses” functions are considered to be representative of the Company's activities. The detail of the expenses by nature is disclosed in note 3.2.Presentation of the statement of cash flowsThe consolidated statements of cash flows are prepared using the indirect method and separately present the cash flows associated with operating, investing, and financing activities. Segment reportingIn accordance with IFRS 8 Operating Segments ("IFRS 8") , reporting by operating segment is derived from the internal organization of the Company’s activities; it reflects management’s viewpoint and is established based on internal reporting used by the chief operating decision maker (the Chief Executive Officer) to allocate resources and to assess performance.

Information per business segment

The Company operates in a single operating segment: the conducting of research and development of innovative red blood cell-based therapeutics for cancer and orphan diseases in order to market them in the future.

Information per geographical segment


Income from external customers (amounts in thousands of euros)	12/31/2020	12/31/2021	12/31/2022
France	61	0	60
United States	185	128	134
Total	246	128	194


Non current assets (amounts in thousands of euros)	12/31/2020	12/31/2021	12/31/2022
France	8,414	6,325	3,140
United States	21,265	19,520	37
Total	29,679	25,845	3,177

Events after the close of the reporting period

On January 20, 2023, Erytech Pharma received from the French tax authorities a notice of tax audit. This tax audit concerns the fiscal years ending on 12/31/2020 and 12/31/2021. The Company awaits the comments of the tax authorities following the first meeting held on February 8, 2023.

On February 15, 2023 ERYTECH and PHERECYDES announced a Proposed Combination intending to create a Global Leader in extended phage therapies.

This strategic combination would build on complementary expertise and capabilities of both companies to accelerate development of extended phage therapies for antimicrobial resistance (AMR), in particular via the phase II PhagoDAIR study conducted by PHERECYDES, as well as other anti-infective fields and therapeutic areas with high unmet medical needs.

Under the terms of the Memorandum of Understanding, PHERECYDES shareholders would receive 15 new ERYTECH shares for every 4 PHERECYDES shares they currently own. Upon completion of the transaction, PHERECYDES shareholders are expected to hold approximately 49.5% of the share capital and voting rights of ERYTECH.

Transaction is expected to close at the end of the second quarter of 2023.

NOTES RELATED TO THE CONSOLIDATED STATEMENT OF INCOME (LOSS)

12 Months Ended

Dec. 31, 2022

Disclosure Of Detailed Information Of Operating Income Loss [Abstract]

NOTES RELATED TO THE CONSOLIDATED STATEMENT OF INCOME (LOSS)Operating income


Accounting policies Research tax credit The research tax credit (Crédit d’Impôt Recherche or “CIR”) (the “Research Tax Credit”) is granted to companies by the French tax authorities in order to encourage them to conduct technical and scientific research. Companies that prove that they have expenditures that meet the required criteria (research expenditures located in France or, since January 1, 2005, within the European Union or in another State that is a party to the Agreement on the European Economic Area that has concluded a tax treaty with France that contains an administrative assistance clause) receive a tax credit that (a) can be used for the payment of the corporate tax due for the fiscal year in which the expenditures were made and the next three fiscal years, or, (b) as applicable, can be reimbursed in cash. The expenses taken into account for the calculation of the Research Tax Credit involve only research expenses. The Company has benefited from the Research Tax Credit since its inception. The CIR is presented under operating income as it meets the definition of government grant as defined in IAS 20 Accounting for Government Grants and Disclosure of Government Assistance (“IAS 20”). Subsidies Subsidies received that are not repayable by the Company are recognized as operating income where there exists reasonable assurance that the Company will comply with the conditions attached to the subsidies and the subsidies will be received. Subsidies that are upfront payments are presented as deferred revenue and recognized ratably through income over the duration of the research program to which the subsidy relates. A public subsidy that is to be received either as compensation for expenses or for losses already incurred, or for immediate financial support of the Company without associated future costs, is recognized as operating income when there exists reasonable assurance that the subsidies will be received. Revenues from licenses or other contracts For each of its partnership agreements, the Company determines if it acts as a principal or as an agent in accordance with IFRS 15 Revenue from contracts with customers (“IFRS 15").
Partnership with Orphan Europe NOPHO clinical trial Within the context of this agreement, Orphan Europe agreed to finance the NOPHO study for a total amount of €600 thousand. This Income is recognized in “other income” in the statement of income (loss).
License agreement with SQZ Biotechnologies ("SQZ") Under the term of the agreement, the Company has granted SQZ Biotechnologies an exclusive worldwide license to develop antigen specific immune modulating therapies employing red blood cell-based approaches. In accordance with IFRS15, this agreement grants to SQZ Biotechnologies a right to use the underlying intellectual property ("static license"). Consequently, the income linked to the upfront payment (€1 million) was recognized in June 2019 when SQZ Biotechnologies could begin to use the licensed intellectual property.

The Company does not generate any revenue from the sale of its products considering its stage of development.


(amounts in thousands of euros)	12/31/2020	12/31/2021	12/31/2022
Research Tax Credit	3,430	3,669	1,486
Subsidies and extinguishment of conditional advance (1)	42	383	4,968
Income from licenses or other contracts	246	128	194
Net gain on disposal of tangible assets			24,351
Total	3,718	4,180	30,998

(1) The extinguishment of BPI conditional advance on TEDAC research program for €4,895 thousand is discussed in note 4.8.2.

The reduction in the research tax credit is related to the end of the TRYbeCA1 clinical trial.

The net gain from the disposal of fixed assets is related to the sale of the Princeton plant to Catalent and breaks down as follows :

–Proceeds from the sale of €40,676 thousand ($44,500 thousand);

–The net book value of tangible fixed assets of €15,673 thousand ($17,146 thousand);

–The net book value of intangible fixed assets of €4 thousand ($4 thousand)

–The net book value of the rights of use for €3,022 thousand ($3,307 thousand);

–The cancellation of the lease obligation for €5,419 thousand ($5,928 thousand);

–Transaction costs of €3,046 thousand ($3,333 thousand)

Operating expenses by natureResearch and development expenses


For the year ended December 31, 2020 (amounts in thousands of euros)	R&D	Clinical studies	Total
Consumables	54	6,732	6,786
IT costs and maintenance	117	1,162	1,279
Services, subcontracting and fees	1,099	28,487	29,586
Personnel expenses	2,268	13,361	15,629
Depreciation and amortization	283	3,951	4,234
Other	25	41	66
Total	3,846	53,734	57,580


For the year ended December 31, 2021 (amounts in thousands of euros)	R&D	Clinical studies	Total
Consumables	151	4,849	5,000
IT costs and maintenance	116	1,366	1,482
Services, subcontracting and fees	589	17,480	18,069
Personnel expenses	1,960	13,633	15,593
Depreciation and amortization	353	4,531	4,884
Other	17	55	72
Total	3,186	41,914	45,100


For the year ended December 31, 2022 (amounts in thousands of euros)	R&D	Clinical studies	Total
Consumables	165	1,019	1,184
IT costs and maintenance	45	949	994
Services, subcontracting and fees	395	1,287	1,682
Personnel expenses	1,883	9,576	11,459
Depreciation, amortization & impairment	444	3,548	3,992
Other	82	514	596
Total	3,014	16,893	19,907

The €25.2 million significant decrease in research and development expenses between 2022 and 2021 can be explained by:

–a decrease of €16.4 million of services and subcontracting expenses:

–TRYbeCA-1 study cost decreased by $14.5 million, of which patient cost for €5.3 million, CRO cost for €5.9 million, Graspa production cost for €1.5 million and other clinical vendors for €1.8 million, following the negative result of the study at the end of 2021 .

–TRYbeCA-2 cost decreased by €0.9 million (including €0.6 million for patient cost) and NOPHO cost decreased by €0.3 million.

–a decrease in consumable of €3.8 million, as no additional purchase of Eryaspase were made in 2022.

–a decrease of €4.1 million of personnel expenses, with the transfer to Catalent of Princeton manufacturing facility employees in April 2022 and the restructuring plan in Lyon completed in the fourth quarter 2022. The average number of full-time employees allocated to our research and development workforce decreased from 152 in 2021 to 93 in 2022. The personnel expense in 2022 includes a Lyon (France) restructuring charge of €1.3 million (refer to note 1 and 4.6).

–a net decrease in depreciation and amortization expenses of €- 0.9 million in 2022, mainly related to:

–the decrease in depreciation of the Princeton Manufacturing facility sold to Catalent for €2.0 million

–the decrease in amortization and impairment of intangible assets of €0.6 million in 2022 (due to impairment loss recorded in 2021 on the Troy project)

–an impairment charge of €1.7 million in 2022 for the facilities, fixtures, equipment and rights of use of the Adenine production unit in France (refer to notes 4.1.3 and 4.2).

The €12.5 million decrease in research and development expenses between 2021 and 2020 can be explained by:

–the decrease of €11.5 million in external services mainly linked to decrease in clinical study expenses (Clinical Research Organization vendor and Patients site cost).

–the decrease of €1.8 million in consumables, mainly related to reduction of purchase of Asparagynase (Graspa production key component used in clinical trial for patient treatment)

General and administrative expenses


(amounts in thousands of euros)	12/31/2020	12/31/2021	12/31/2022
Consumables	224	226	93
IT Costs and maintenance	1,070	1,129	1,048
Services, subcontracting and fees	5,962	6,684	6,477
Personnel expenses	6,573	6,174	5,013
Depreciation and amortization	686	494	627
Other	455	888	630
Total	14,970	15,595	13,887

The 0.6 million euro increase of general and administrative expenses between 2020 and 2021 is explained mostly by insurance premium increase of €1,323 thousand and personnel expenses decrease €399 thousand.

The €1.71 million decrease of general and administrative expenses between 2021 and 2022 is explained mostly by personnel expenses reductions. G&A personnel expenses decreased by €1.2 million in 2022, with the combined effects of employees resignations and a restructuring plan in Lyon . The average number of full-time employees allocated to our G&A workforce decreased from 42 in 2021 to 26 in 2022. The personnel expense in 2022 includes a Lyon (France) restructuring charge of €0.4 million (refer to note 1 and 4.6).

Personnel expensesResearch and development expenses


For the year ended December 31, 2020 (amounts in thousands of euros)	R&D	Clinical studies	Total
Wages and salaries	1,579	9,886	11,465
Share-based payments (employees and executive management)	24	507	531
Social security expenses	665	2,968	3,633
Total personnel expenses	2,268	13,361	15,629


For the year ended December 31, 2021 (amounts in thousands of euros)	R&D	Clinical studies	Total
Wages and salaries	1,318	10,106	11,424
Share-based payments (employees and executive management)	110	570	680
Social security expenses	532	2,957	3,489
Total personnel expenses	1,960	13,633	15,593


For the year ended December 31, 2022 (amounts in thousands of euros)	R&D	Clinical studies	Total
Wages and salaries	1,348	7,748	9,096
Share-based payments (employees and executives)	0	(44)	(44)
Social security expenses	535	1,872	2,407
Total personnel expenses	1,883	9,576	11,459

The weighted average full-time employees (FTE) was 166 in 2020, 152 in 2021 and 93 in 2022.

General and administrative expenses


(amounts in thousands of euros)	12/31/2020	12/31/2021	12/31/2022
Wages and salaries	4,393	4,032	3,399
Share-based payments (employees and executive management)	532	561	442
Social security expenses	1,648	1,581	1,172

Total personnel expenses	6,573	6,174	5,013

The weighted average full-time employees (FTE) was 41 in 2020, 42 in 2021 and 26 in 2022.

Share-based payments (IFRS 2)


Accounting policies The Company has applied IFRS 2 Share-based payment (“IFRS 2”) to all equity instruments e.g. free shares (“AGA”), stock options (“SO”), share subscription warrants (“BSA”) and founder subscription warrants (“BSPCE”) granted since inception to its employees, members of the Board of Directors or other individuals. Pursuant to IFRS 2, the cost of the remuneration granted with equity instruments is recognized as an expense in exchange for an increase in the shareholders’ equity for the vesting period during which the rights to be enjoyed from the equity instruments are acquired. As such, changes in value subsequent to the grant date have no effect on this initial measurement. Fair value is estimated using the Black & Scholes valuation model (for BSA, SO and BSPCE valuation) and Monte-Carlo valuation model (for AGA valuation). These models allow the Company to take into account the characteristics of the plan (exercise price, vesting period), the market data at the grant date (volatility, expected dividends, repo margin), possible performance conditions attached to warrants and recipient behavior assumptions. The Company has no legal or constructive obligation to repurchase or settle any of these equity instruments in cash.

Founder subscription warrants (“BSPCE”) plan

Types of securities

BSPCE2012

BSPCE2014

Maturity

May 20, 2020

January 22, 2024

In the event of a beneficiary departure from the Company for any reason whatsoever, this beneficiary shall retain the BSPCE2014 to which he subscribed prior to his departure. However, in the event of a beneficiary departure from the Company, for any reason whatsoever, prior to subscription of the BSPCE2014 to which the beneficiary has a right, the BSPCE2014 will be forfeited. In this situation, the BSPCE2014 not subscribed may be re-allocated to other beneficiaries within the same category and/or replacing the person who left the Company.

Share subscription warrants (“BSA”) plan

Types of securities

BSA2014

BSA2016

BSA2017

BSA2019

BSA2021

Vesting period

Tranche 1 : 1 year

Tranche 2 : 2 years

Tranche 1 : 1 year

Tranche 2 : 2 years

Tranche 3 : 3 years

2 years

1 year

Maturity

January-2024

Depending of the grant date
October-2021
January-2022

Depending of the grant date
June-2022
January-2023

October-2022

October 2024

The main assumptions used to determine the fair value of the plans granted in 2021. The Company did not grant new BSA in 2020 and 2022.


	Grant in July 2021
Number of warrants	75,250
Plan	BSA2021
Exercise price	€3.82
Price of the underlying share	€3.55
Expected dividends	—	%
Volatility (1)	55.16	%
Expected term	2.5 years
Fair value of the plan (in thousands of euros) (2)	82

(1)based on the historical volatility observed on the ERYP index on Euronext

(2)The acquisition price of the BSA granted in July 2021 was equal to the grant date fair value of the instrument. Therefore, no expense was recognized under IFRS 2.

Stock options (“SO”) plan

Types of securities

SO2016

SO2017

SO2018

SO2019

SO2020

SO2021

Vesting period (identical for all plans)

Tranche 1: 2 years

Tranche 2: 3 years

Maturity

Depending of the grant date
October-2026
January-2027
June-2027
October-2027

Depending of the grant date
June-2027
January-2028

Depending of the grant date
September-2028
January-2029
April-2029

Depending of the grant date
July-2029
October-2029
February-2030

Depending of the grant date
July-2030
November-2030
June-2031

Depending of the grant date
July-2031
December-2031

The main assumptions used to determine the fair value of the plans granted in 2020 and 2021 are presented in the tables below. The Company did not grant any SO in 2022.


	Grant in February 2020			Grant in July 2020
Number of options	41,950			374,000
Plan	SO2019			SO2020
Exercise price	€	5.87		€	6.88
Price of the underlying share	€	5.51		€	6.56
Expected dividends	0.00		%	0.00		%
Volatility (1)	41.35		%	43.41		%
Expected term	T1: 6 years T2: 6.5 years
Fair value of the plan (in thousands of euros)	84			951


	Grant in November 2020			Grant in June 2021			Grant in July 2021			Grant in December 2021
Number of options	75,000			57,000			377,550			149,000
Plan	SO2020			SO2020			SO2021			SO2021
Exercise price	€	6.14		€	4.78		€	3.71		€	2.14
Price of the underlying share	€	6.37		€	4.37		€	3.55		€	2.10
Expected dividends	0.00		%	0.00		%	0.00		%	0.00		%
Volatility (1)	44.32		%	44.30		%	44.25		%	45.82		%
Expected term	T1: 6 years T2: 6.5 years
Fair value of the plan (in thousands of euros)	199			96			533			131

(1)based on the historical volatility observed on the ERYP index on Euronext

Free shares (“AGA”) plan

Types of securities

AGA2017

AGA2018

AGA2019

AGA2020

AGA2021

Vesting period

Tranche 1:1 year

Tranche 2: 2 years

Tranche 3: 3 years

Tranche 1: 1 year

Tranche 2: 2 years

Tranche 3: 3 years

Tranche 4 : 4 years

Tranche 5 : 5 years

The main assumptions used to determine the fair value of the plans granted in 2020 and 2021 are presented in the table below. The Company did not grant new AGA in 2022.


	Grant in February 2020			Grant in July 2020
Number of shares	50,037			250,012
Plan	AGA 2019			AGA 2020
Price of the underlying share	€	5.51		€6.56
Expected dividends	0.00		%	0.00		%
Volatility (1)	38.55		%	42.23		%
Maturity	5 years			5 years
Performance criteria	(2)			(2)
ERYP	€	5.87		€	6.88
Performance multiple ("PM")	2			2
Fair value of the plan (in thousands of euros)	133			877


	Grant in June 2021			Grant in July 2021			Grant in December 2021
Number of shares	50,831			231,000			93,331
Plan	AGA 2020			AGA 2021			AGA 2021
Price of the underlying share	€	4.37		€	3.55		€	2.10
Expected dividends	0.00		%	0.00		%	0.00		%
Volatility (1)	44.79		%	44.72		%	47.56		%
Maturity	5 years			5 years			5 years
Performance criteria	(2)			(2)			(2)
ERYP	€	4.78		€	3.71		€	2.14
Performance multiple ("PM")	2			2			2
Fair value of the plan (in thousands of euros)	121			465			133

(1)based on the historical volatility observed on the ERYP index on Euronext

(2)performance criteria: progression of the quoted market share price between the grant date and the tranche acquisition date

•Tri: (ERYPi - ERYP) / (ERYP x (PM – 1)) with ERYPi:

◦average price of the 40-quoted market share price days before the acquisition date for grants until April 2019 ;

◦maximum between the share price at the acquisition date and the average price of the 20-quoted market share price days before the grant date discounted by 5% for grants from October 2019.

•If TRi <=0% no shares granted are acquired

•If Tri>100% all the shares granted are acquired

•If 0%<TRi<100% shares granted are acquired following the TRi percentage

Breakdown of expenses per financial year


Plan name	Amount in P&L in euros thousands as of December 31, 2020	of which employees	of which executive officers and executive committee	of which board members
AGA	537	298	239	—
BSA	43	—	—	43
SO	599	189	410	—
Total	1,179	487	649	43


Plan name	Amount in P&L in euros thousands as of December 31, 2021	of which employees	of which executive officers and executive committee	of which board members
AGA	616	306	311
BSA	1			1
SO	706	193	432	82
Total	1,323	499	743	83


Plan name	Amount in P&L in euros thousands as of December 31, 2022	of which employees	of which executive officers and executive committee	of which board members
AGA	246	(51)	297	—
BSA	—	—	—	—
SO	201	(22)	174	49
Total	447	(73)	471	49

There were no new instruments attributed in 2022. Due to the significant departures of the year, share based expenses in 2022 included a true up to account for actual forfeitures, which resulted in a net reversal for employees.

Summary of outstanding instruments


Number of outstanding warrants (BSA) and founder's warrants (BSPCE) with a ratio of 1 option = 10 shares	Number of BSA and BSPCE	Weighted-average exercise price
Outstanding at December 31, 2019	40,804	€	97.34
Exercisable at December 31, 2019	40,804	€	97.34
Granted	—	€	—
Forfeited	(19,386)	€	73.60
Exercised	(1,608)	€	73.60
Outstanding at December 31, 2020	19,810	€	122.50
Exercisable at December 31, 2020	19,810	€	122.50
Granted
Forfeited
Exercised
Outstanding at December 31, 2021	19,810	€	122.50
Exercisable at December 31, 2021	19,810	€	122.50
Granted
Forfeited
Exercised
Outstanding at December 31, 2022	19,810	€	122.50
Exercisable at December 31, 2022	19,810	€	122.50


Number of outstanding stock-options and warrants (BSA) with a ratio of 1 option = 1 share	Number of stock-options and BSA	Weighted-average exercise price
Outstanding at December 31, 2019	897,246	€	10.26
Exercisable at December 31, 2019	173,899	€	21.46
Granted	505,950	€	6.69
Forfeited	(111,860)	€	9.53
Exercised	—	€	—
Outstanding at December 31, 2020	1,291,336	€	8.91
Exercisable at December 31, 2020	236,525	€	21.28
Granted	658,800	€	3.46
Forfeited	(45,925)	€	5.74
Exercised	—	€	—
Outstanding at December 31, 2021	1,904,211	€	7.09
Exercisable at December 31, 2021	636,376	€	11.47
Granted
Forfeited	(881,264)	€	7.83
Exercised
Outstanding at December 31, 2022	1,022,947	€	6.45
Exercisable at December 31, 2022	549,097	€	11.56


Number of outstanding free shares (AGA) with a ratio of 1 option = 1 share			Number of oustanding free shares
Outstanding at December 31, 2019			648,345
Granted			300,049
Forfeited			(181,146)
Acquired			(6,743)
Outstanding at December 31, 2020			760,505
Granted			375,162
Forfeited			(144,047)
Acquired			(22,539)
Outstanding at December 31, 2021			969,081
Granted
Forfeited			(385,360)
Acquired
Outstanding at December 31, 2022			583,721

As of December 31, 2022, the outstanding equity instruments could lead to the issuance of 1,804,768 potential shares.

Depreciation, amortization and impairment


(amounts in thousands of euros)	12/31/2020	12/31/2021	12/31/2022
Amortization and impairment of intangible assets	16	571	7
Depreciation of property, plant and equipment	3,457	3,455	2,168
Impairment of property, plant and equipment			983
Depreciation of the right of use	1,518	1,351	733
Impairment of the right of use			728
Total amortization and depreciation	4,991	5,377	4,619

The decrease in depreciation in 2022, is primary related to the sale of the Princeton facility to Catalent in April 2022 for €1,896 thousand and to the impairment of the intangible production process for €560 thousand in 2021 . The impairment charge

increase in 2022 mainly concerns Adenine (Lyon, France) production site, with €983 thousand for the equipments and €728 thousand for the right of use (see note 4.1.2 and 4.2) Financial income (loss)


Accounting policies Financial income (loss) includes mainly: •Amortized costs of convertibles notes and change in fair value of embedded derivatives; •Interest expenses incurred on financial liabilities and lease liabilities; •Income received from cash and cash equivalents; •Gains and losses on exchange rate variations on financial and investing transactions.


(amounts in thousands of euros)	12/31/2020	12/31/2021	12/31/2022
Income from short term deposits	12	13	58
Change in fair value of derivative liabilities	652	1,175	0

Other financial income	225	4,234	4,395
Financial income	889	5,422	4,453
Amortized cost of convertible notes	(1,684)	(1,566)
Financial expenses on lease liability	(336)	(305)	(138)
Interest expense related to borrowings	(142)	(267)	(181)

Other financial expenses	(3,192)	(564)	(1,045)
Financial expenses	(5,354)	(2,702)	(1,364)
Financial income (loss)	(4,465)	2,720	3,089

Other financial income and expenses are mainly comprised of:

•Net Foreign currency gains and (losses) of €(3,028) thousand in 2020, €3,570 thousand in 2021 and €2,891 thousand in 2022;

•A net expense of €390 thousand in 2021 related to the accounting of OCABSA contract, in accordance with IFRS 9 (no corresponding expense in 2020 and 2022).

• In 2022 we recorded €386 thousand related to the extinguishment of BPI conditional advance accrued interest (see note 4.8.2).

Income tax


Accounting policies Current taxes The Parent Company, as an entity incorporated in France, is subject to the corporate value-added contribution "cotisation sur la valeur ajoutée des entreprises—CVAE" . To enter within the scope of IAS 12 Income Taxes (“IAS 12”), a tax must be calculated based on a net amount of income and expenses, and this net amount can be different from the net book results. The Company has judged that the corporate value-added contribution satisfies the characteristics outlined in this conclusion, insofar as the value added constitutes the intermediate level of income that systematically serves as the basis, according to French tax law, for determining the amount owing in relation to the corporate value-added contribution. Deferred taxes Except in specific cases, deferred taxes are calculated for the temporary differences between the carrying value of an asset or a liability and its tax value. Changes in the tax rates are recorded in the results of the financial year during which the rate change is decided. Deferred tax assets resulting from temporary differences or tax losses carried forward are limited to the deferred tax liabilities with the same maturity, except where their allocation on future taxable income is probable. Deferred taxes are calculated based on the most recent tax rates adopted at the date of each financial year-end. Deferred tax assets and liabilities are not discounted.

Tax rate and tax loss carryforwards

As of December 31, 2022, the amount of accumulated tax loss carryforwards were:

•€364.2 million in France, with no expiration date. The proposed merger with PHERECYDES (refer to note 2.9) may limit the Company’s ability to use all or part of the tax loss carryforward.

•€12.2 million ($13.0 million) in the United States with no expiration date.

The standard corporate tax rate in France was 25% for 2022.

Reconciliation of the effective tax rate


(amounts in thousands of euros)	12/31/2020		12/31/2021		12/31/2022
Net loss	(73,300)		(53,797)		(228)
Current Income tax (1)	(3)		(2)		(521)
Profit / Loss before tax	(73,297)		(53,795)		293
Tax rate	28	%	26.50	%	25.00	%
Theoretical tax expense or income	20,522		14,256		(73)
Current year loss not capitalized	(20,803)		(15,766)		(585)
Research tax credits	960		972		371
Tax rate differences	—		—		(58)
Share based compensation expense	(330)		(351)		(112)

Other differences	(354)		887		(64)
Effective tax (loss) / income	(3)		(2)		(521)

Nature of deferred taxes

The deferred tax related to loss carryforwards of Erytech Pharma S.A are computed using a rate of 25%.

(1) Considering the level of tax loss of the Company, no current tax expense were recognized in 2020 and 2021. In 2022 following the sales of the Princeton facility by our US subsidiary and the recognition of a net gain of €24.3 millions (see note 3.1), the Company performed a tax analysis to determine the extent of prior year federal and state tax losses which could be carried forward to offset the current year gain. As a result of this analysis, the company recorded a current income tax expense of €0.5 million for the year ended December 31, 2022.


(amounts in thousands of euros)	12/31/2020	12/31/2021	12/31/2022
Loss carryforward	76,978	91,775	94,466
Tax credit carryforward	79	178	158
Temporary differences	484	953	410
Unrecognized deferred tax assets	(77,541)	(92,906)	(95,035)
Net amount	—	—	—

The Company did not recognized any deferred tax expense or income in 2020, 2021, 2022.

Basic earnings (loss) per share and diluted earnings (loss) per share


Accounting policies The basic earnings per share are calculated by dividing the Company’s net income (loss) by the weighted average number of shares in circulation during the corresponding period. The diluted earnings per share are calculated by dividing the results by the weighted average number of common shares in circulation, increased by all dilutive potential common shares. The dilutive potential common shares include, equity instruments granted to employees, members of the Board of Directors or other individuals as detailed in note 3.3.3 and convertibles notes and warrants issued as part of the financing agreement with financing agreement with Luxembourg-based European High Growth Opportunities Securitization Fund as detailed in note 4.8.1. Dilution is defined as a reduction of earnings per share or an increase of loss per share. When the exercise of outstanding share options and warrants decreases loss per share, they are considered to be anti-dilutive and excluded from the calculation of diluted loss per share. Thus, basic and diluted loss per share are equal as all equity instruments issued have been considered anti-dilutive.


	12/31/2020	12/31/2021	12/31/2022
Net loss (in thousands of euros)	(73,300)	(53,797)	(228)
Weighted number of shares for the period (1)	18,386,587	23,692,457	31,016,053
Basic loss per share (€/share)	(3.99)	(2.27)	(0.01)
Diluted loss per share (€/share)	(3.99)	(2.27)	(0.01)


	12/31/2020	12/31/2021	12/31/2022
Number of shares as of January 1 (1)	17,937,535	18,386,587	31,016,053
Number of shares issued during the year (prorata temporis)
Share capital increase	—	3,591,634
Conversion of convertible notes ("OCA")	437,128	1,705,162
Exercise of warrants	10,391	—
Free shares acquired	1,533	9,074
Weighted number of shares for the period	18,386,587	23,692,457	31,016,053

(1)after deduction of treasury shares (2,500 shares are held by the Company as treasury shares and recognized as a deduction of shareholders’ equity).

As of December 31, 2020, 2021 and 2022, the potential shares that could be issued (see Note 3.3.3 and Note 4.9.1) were not taken into consideration in the calculation of the diluted earnings, as their effect would be anti-dilutive.

NOTES RELATED TO THE CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

12 Months Ended

Dec. 31, 2022

NOTES RELATED TO THE CONSOLIDATED STATEMENTS OF FINANCIAL POSITIONFixed assets

4.1.1 Intangible assets

Accounting policies

Internally generated intangible assets – Research and development costs

In accordance with IAS 38 Intangible Assets (“IAS 38”), research expenditures are expensed in the period during which they are incurred.

An internally generated intangible asset relating to a development project is recorded as an asset if, and only if, the following criteria are met:

(a) it is technically feasible to complete the development project;

(b) intention on the part of the Company to complete the project and to utilize it;

(d) proof of the probability of future economic benefits associated with the asset;

(e) availability of the technical, financial, and other resources for completing the project; and

(f) reliable evaluation of the development expenses.

The initial measurement of the asset is the sum of expenses incurred starting on the date on which the development project meets the above criteria.

Because of the risks and uncertainties related to regulatory authorizations and to the research and development process, the Company believes that the six criteria stipulated by IAS 38 have not been fulfilled to date and the application of this principle has resulted in all development costs being expensed as incurred in all periods presented.

Other intangible assets

Other intangible assets are recorded at their acquisition cost plus costs directly attributable to the preparation of the asset for its intended use.

Other intangible assets mainly comprised costs of modeling studies of a new production process and costs of acquisition of software licenses.

Intangible assets with a finite life are amortized on the basis of the straight-line method over their estimated useful life.

Intangible assets Item

Amortization period

Software

1 to 5 years


(amounts in thousands of euros)	Other intangible assets	Intangible assets in progress	TOTAL
GROSS VALUE
As of As of December 31, 2019	1,876	—	1,876
Increase	—	2	2
Decrease	—	—	—
FX rate impact	(1)	—	(1)
Reclassification	—	—	—
As of As of December 31, 2020	1,875	2	1,877
Increase	—	—	—
Decrease	(201)	—	(201)
FX rate impact	1	—	1
Reclassification	(2)	—	(2)
As of As of December 31, 2021	1,673	2	1,675
Increase	—	—	—
Decrease	(7)	—	(7)
FX rate impact	—	—	—
Reclassification	2	(2)	—
As of As of December 31, 2022	1,668	—	1,668

ACCUMULATED AMORTIZATION AND IMPAIRMENT
As of As of December 31, 2019	(1,273)	—	(1,273)
Increase	(16)	—	(16)
Decrease	—	—	—
FX rate impact	1	—	1
As of As of December 31, 2020	(1,288)	—	(1,288)
Increase	(571)	—	(571)
Decrease	199	—	199
FX rate impact	—	—	—
As of As of December 31, 2021	(1,660)	—	(1,660)
Increase	(7)	—	(7)
Decrease	4	—	4
FX rate impact	—	—	—
As of As of December 31, 2022	(1,663)	—	(1,663)

NET VALUE
As of December 31, 2019	603	—	603
As of December 31, 2020	587	2	589
As of December 31, 2021	13	2	15
As of December 31, 2022	5	—	5

After performing an impairment test at the end of 2019, the Company determined that €1,036 thousand of the intangible asset will no longer be used in the intended production process. The remaining amount has been impaired totally in 2021 for €560 thousand.

Right of use


Accounting policies In accordance with IFRS 16 Leases (“IFRS 16”), applicable since January 1, 2019, the right of use is recognized on the lessee’s balance sheet when the asset linked to the lease agreement become available. The right of use asset is measured at cost and comprises: • the amount of the initial measurement of the lease liability (see note 4.10), • lease incentives, payments at or prior to commencement date, • incremental costs which would not have been incurred if the contract had not been concluded. The right of use is subsequently measured at cost less depreciation and any accumulated impairment loss. The amount can be adjusted based on certain revaluations of the lease liability. The right of use are tested for impairment whenever there is an indicator that such asset may be impaired.


(amounts in thousands of euros)	Buildings	Plant, equipment and tooling	Transport equipment	Office equipment and computers	TOTAL
GROSS VALUE
As of December 31, 2019	11,237	954	80	118	12,389
Increase	92	—	7	—	99
Decrease	—	—	(14)	—	(14)
FX rate impact	(483)	—	—	—	(483)
Reclassification		—	—	—	—
As of December 31, 2020	10,846	954	73	118	11,991
First application of IFRS 16					—
Increase		383	33		416
Decrease	(1,763)				(1,763)
FX rate impact		13			375
Reclassification		0	—	0	0
As of December 31, 2021	9,445	1,350	106	118	11,019
Increase	75	—	13		88
Decrease	(4,045)	(396)			(4,441)
FX rate impact	198	—			198
Reclassification					—
As of December 31, 2022	5,673	954	119	118	6,864

ACCUMULATED DEPRECIATION AND IMPAIRMENT
As of December 31, 2019	(1,285)	(954)	(23)	(118)	(2,380)
Increase	(1,489)	—	(29)	—	(1,518)
Decrease	0	0	10	—	10
FX rate impact	125	—	—	—	125
Reclassification	—	—	—	—	—
As of December 31, 2020	(2,649)	(954)	(42)	(118)	(3,763)
Increase	(1,252)	(76)	(23)	—	(1,351)
Decrease	1,070	0	—	—	1,070
FX rate impact	(103)	(3)	—	—	(106)
Reclassification	—	—	—	—	—
As of December 31, 2021	(2,934)	(1,033)	(65)	(118)	(4,150)

Increase	(706)		(27)		(733)
Impairment	(728)	—	—	—	(728)
Decrease	1,339	79	—	—	1,418
FX rate impact	(89)	—	—	—	(89)
Reclassification		—	—	—	—
As of December 31, 2022	(3,116)	(954)	(92)	(118)	(4,280)

NET VALUE
As of December 31, 2020	8,197	—	31	—	8,228
As of December 31, 2021	6,511	317	41	—	6,869
As of December 31, 2022	2,557	—	27	—	2,584

The remaining right of use net book value of €2,584 thousand is mainly related to Bioserra building lease in Lyon (France) for €2,557 thousand.

–The decrease in 2022 of the building and equipments rights of use, with a gross amount of $4,441 thousand, accumulated depreciation of €1,418 thousand and a net book value of €3,022 thousand ($3,307 thousand) is related to the Princeton Plant sale to Catalent;

–The increase of building right of use impairment loss of €728 thousand in 2022 (see note 3.4) is mainly the result of the impairment test conducted on the Adenine (Lyon, France) building right of use after the site has been idled, following 2022 adverse events (mostly clinical study result and restructuring plan). The Adenine right of use was written down to zero given the specialized nature of the site, its current rent compared to market rents and the low prospects of sub-letting the site before its lease term (end of June 2024).

–The Company also performed an impairment test on the remaining material right-of-use asset which relates to the Bioserra (Lyon, France) building as of December 31, 2022. The Company estimated the recoverable amount of this asset based on its fair value less costs of disposal using a discounted cash flow model with assumptions such as the term of the lease (June 2029), market rents and average rate of return for similar buildings. The fair value measurement was categorized as a Level 3 fair value based on the inputs in the valuation technique used. An immaterial impairment charge was recognized on this asset after conducting the test.

Other non current assets


Accounting policies Other financial assets are composed of receivables initially recognized at their fair value and then at the amortized cost calculated with the effective interest rate (“EIR”) method. Financial assets with a maturity of more than one year are classified in “other non-current financial assets” in accordance with IAS 1.


(amounts in thousands of euros)	12/31/2020	12/31/2021	12/31/2022
Deposits related to leased premises	454	476	193
Advance payments to suppliers	620	342	0
Other	17	58	2
Total other non-current assets	1,091	876	195

Advance payments comprised payments made to service providers, especially Contract Research Organizations (“CROs”), involved with the conduct of the clinical trials in the solid tumors indication (TRYbeCA-1 and TRYbeCA-2 study).

Trade receivables and other current assets


Accounting policies Other current assets are initially recognized at their fair value and then at the amortized cost calculated with the effective interest rate (“EIR”) method. Trade receivables Trade receivables are initially recognized in accordance with IFRS 15 and then at the amortized cost calculated with the effective interest rate (“EIR”) method. The Company recognizes loss allowances for expected credit losses (“ECL”), which, for trade receivables and contract assets, are measured at an amount equal to lifetime ECLs that result from all possible default events over their expected life. Loss allowances are deducted from the gross amounts of the assets.


(amounts in thousands of euros)	12/31/2020	12/31/2021	12/31/2022
Trade and other receivables	4	12	76
Total current trade receivables	4	12	76
Research Tax Credit	3,432	3,549	1,484
Other receivables (including tax and social receivables)	898	669	973
Net investment in a sublease	0	479	43
Deposits related to leased premises	8	7	121
Advance payments and deposits to suppliers	51	377	342
Prepaid expenses	793	1,256	805
Total other current assets	5,182	6,337	3,769

Research Tax Credit

The Company benefits from the provisions in Articles 244 quater B and 49 septies F of the French Tax Code related to the Research Tax Credit.

As of December 31, 2020,