Consolidated Statement of Comprehensive Income

For the six months to 30 June 2022

Consolidated Statement of Financial Position

As at 30 June 2022

Consolidated Statement of Changes in Equity

For the six months to 30 June 2022

The merger reserve was created on the acquisition of ORPH Pharma IP Company Limited as part of the demerger from Open Orphan plc. Consideration on the acquisition was satisfied by the issuance of shares. Under section 612 of the Companies Act 2006, the premium on these shares has been included in a merger reserve.

Consolidated Statement of Cash Flows

For the six months to 30 June 2022

Notes to the Interim Results

1. General information

Poolbeg Pharma plc ("Poolbeg" or the "Company") is a public limited company incorporated in England and Wales with company number 13279507. The Company is quoted on the AIM market of the London Stock Exchange (ticker: POLB.L, ISIN: GB00BKPG7Z60).

Poolbeg is a clinical stage infectious diseases pharmaceutical company, with a capital light model which aims to develop multiple products faster and more cost effectively than the conventional biotech model.

2. Basis of preparation

The Interim Results of the Company for the six months to 30 June 2022 comprise those of the Company and its subsidiaries (together the "Group"). The Interim Results have been prepared on the going concern basis under the historical cost convention in accordance with the recognition and measurement requirements of United Kingdom adopted International Financial Reporting Standards ("IFRS") and their interpretations issued by the International Accounting Standards Board ("IASB"), and in accordance with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. As is permitted by the AIM rules, the Directors have not adopted the requirements of IAS 34 "Interim Financial Reporting" in preparing the financial statements. Accordingly, the financial statements are not in full compliance with IFRS and have neither been audited nor reviewed pursuant to guidance issued by the Auditing Practices Board. The accounting policies used in the preparation of the Interim Results are consistent with those used in the Company's audited financial statements for the period to 31 December 2021.

The financial information for the six months to 30 June 2022 is unaudited. The comparative financial information is for the period from incorporation on 19 March 2021 to 31 December 2021 and has been extracted from the Company's audited accounts on which the auditors issued an unqualified audit opinion. The information presented for that period does not constitute full accounts for that period. The 31 December 2021 accounts have been delivered to the Companies House.

The financial information is presented in £ which is the functional and presentational currency of the Company. Balances are rounded to the nearest thousand (£'000) except where otherwise indicated.

The Interim Financial Statements were approved by the Board of Directors on 5 September 2022.

3. Loss per share - basic and diluted

The Group presents basic and diluted loss per share ("LPS") data for its ordinary shares. Basic LPS is calculated by dividing the loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period. Diluted LPS is determined by adjusting the loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares, which comprise warrants and share options granted by the Company.

Issued share capital - ordinary shares of 0.02p each

^A On 20 May 2021 the one ordinary share of £1 issued on incorporation of the Company was subdivided into 5,000 ordinary shares of 0.02p each

The calculation of loss per share is based on the following:

Under IAS 33.43 "Earnings per Share", the calculation of loss per share does not assume conversion, exercise, or other issue of potential shares that would have an antidilutive effect on LPS. For the current and prior period, the effect of options would be to reduce the loss per share and as such the basic and diluted LPS are the same. There were 36,829,181 share options and warrants outstanding as at 30 June 2022 (31 December 2021: 36,829,181) and these are potentially dilutive.

4. Tax on ordinary activities

Poolbeg, through its subsidiary ORPH Pharma IP Company Limited, is entitled to claim tax credits in the United Kingdom under the small and medium enterprises (SME) research and development (R&D) tax relief scheme. This scheme provides additional taxation relief for qualifying expenditure on R&D activities and includes an option to surrender a portion of tax losses arising from qualifying activities in return for a cash payment.

The income statement for the six months to 30 June 2022 reflects the £90,000 R&D tax credit for the period to 31 December 2021 which was received in August 2022. In addition, an accrual of £10,000 has been included in respect of the six months to 30 June 2022, no claim has yet been made in relation to 2022 and the company continues to review changes to the SME R&D tax relief scheme which includes a measure to, if certain exemptions are not met, cap SME claims to £20,000 plus 300% of total Pay as you Earn (PAYE) and National Insurance Contributions (NIC) liability for the relevant period covered by the claim. The changes to the scheme effect Poolbeg with effect from the accounting period commencing on 1 January 2022.

No corporation tax charge arises in the six months to 30 June 2022. A split of the current tax credit appears below:

5. Intangible assets

Patents and trademarks are measured initially at purchase cost and are amortised on a straight-line basis over their life from the date that they are available for use.  Amortisation has been charged to administrative expenses in the Statement of Comprehensive Income.

The prior period acquired licences & data additions, £1,500,000, relates to the value of intangible assets acquired from hVIVO Services Limited by ORPH Pharma IP Company Limited as part of the demerger process from Open Orphan plc. £1,250,000 of these assets are currently not being amortised as it is the Company's policy not to amortise assets in development that are not ready for use. The remaining £250,000 of assets acquired which relates to licences for certain data and samples are being amortised over a 10 year period from the date of acquisition. The acquired licences & data in the current period, £291,000, relates to upfront and other fees paid as part of licensing agreements entered. These licensed assets are not currently ready for use and are not being amortised.

The Group reviews the carrying amounts of its intangible assets to determine whether there are any indications that those assets have suffered an impairment loss. If any such indications exist, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. Impairment indications include events causing significant changes in any of the underlying assumptions used in the income approach utilised in valuing in process R&D. These key assumptions are: the probability of success; the discount factor; the timing of future revenue flows; market penetration and peak sales assumptions; and expenditures required to complete development. During the period the Group did not identify any potential changes in the assumptions used in the assessment of the carrying value of the assets.

As part of its regular business the Group enters into licence and collaboration agreements that can contain contingent sales royalty and milestone payments and/or work programme commitments. The payment of royalty and milestone payments under these agreements is entirely dependent on the successful development and commercialisation of the products to which they relate.

6. Trade and other receivables

Clinical trial and collaboration agreement prepayments relate to upfront payments made for research activity to external partners and will be expensed in the income statement over the period of the research activity.  

7. Events after the reporting period

On 22 July 2022 clinical trial activities commenced in relation to the POLB 001 LPS human challenge trial. Initial results are expected by year end 2022.

8. Copy of the interim results

A copy of the Company's Interim Results for the six months to 30 June 2022 is available on the Company's website,  www.poolbegpharma.com/investors/documents/