0001558370-24-003060 | 20-F | XBRL Viewer

Investments in Associates (Tables)

12 Months Ended

Dec. 31, 2023

Investments in associates and results related to associates


		Investment
		in associate
		(€ in thousands)

Balance at January 1, 2022		8

Share of loss from continuing operations		(8)

Balance at December 31, 2022		—

Derecognition of investment in associate (Yarrow Biotechnology, Inc.)		—

Balance at December 31, 2023		—

Other income - Narrative (Details) € in Thousands	12 Months Ended
Other income - Narrative (Details) € in Thousands	Dec. 31, 2023 EUR (€)	Dec. 31, 2022 EUR (€)	Dec. 31, 2021 EUR (€)	Feb. 09, 2018 USD ($)
Other Income [Line Items]
Other income	€ 5	€ 66	€ 31
Grant income	75	699	1,012
Net gain on divestment of intellectual property	2,931
Proceeds from sales of intangible assets, classified as investing activities	7,940
sepofarsen and ultevursen
Other Income [Line Items]
Gross proceeds from sale of intellectual property	8,000
Transaction costs on sale of intellectual property	5,069
Net gain on divestment of intellectual property	2,931
Transaction costs on sale of intellectual property, repayment of grants	1,117
Transaction costs on sale of intellectual property, financial advisory fees	2,715
Transaction costs on sale of intellectual property, incentive payments	913
Transaction costs on sale of intellectual property, assignment and success fees	260
Transaction costs on sale of intellectual property, other costs	64
Foundation Fighting Blindness
Other Income [Line Items]
Grant income	€ 0	€ 594	€ 977
Clinical support agreement \| Foundation Fighting Blindness
Other Income [Line Items]
Funding receivable under agreement \| $				$ 7,500,000

Shareholders' Equity - Share capital (Details)	1 Months Ended				12 Months Ended
Shareholders' Equity - Share capital (Details)	Dec. 31, 2022 EUR (€) shares	Dec. 31, 2022 USD ($) shares	Sep. 30, 2021 EUR (€) shares	Apr. 30, 2021 EUR (€) shares	Dec. 31, 2023 EUR (€) € / shares shares	Dec. 31, 2022 EUR (€) shares	Dec. 31, 2021 EUR (€) shares	Nov. 30, 2021 USD ($)	Apr. 30, 2021 $ / shares
Shareholders Equity
Authorized share capital \| €					€ 13,600,000
Par value per share \| € / shares					€ 0.04
Shares issued in the period \| €						€ 14,572,000	€ 108,477,000
Eli Lilly and Company
Shareholders Equity
Issue of ordinary shares (in shares)	9,381,586	9,381,586	3,989,976
Gross proceeds from issuance of shares	€ 14,122,000	$ 15,000,000	€ 25,270,000
Transaction cost \| €	€ 0		€ 0
Ordinary
Shareholders Equity
Balance at beginning of period (in shares)					84,246,967	74,865,381	54,131,553
Issued for cash						9,381,586	20,498,451
Issued for services							112,657
Exercise of share options					537,513	144,688	474,887
Treasury shares issued (transferred)					(536,096)	(144,688)	(352,167)
Balance at end of period (in shares)	84,246,967	84,246,967			84,248,384	84,246,967	74,865,381
Number of shares issued					84,248,384
Number of shares authorised					170,000,000
Shares were issued and fully paid in cash					81,354,592
Treasury shares	3,429,888	3,429,888			2,893,792	3,429,888
Preferred
Shareholders Equity
Number of shares authorised					170,000,000
At The Market Offering \| Cantor Fitzgerald & Co
Shareholders Equity
Issue of ordinary shares (in shares)						0	0
At The Market Offering \| Ordinary
Shareholders Equity
Maximum aggregate offering of ordinary shares \| $								$ 300,000,000
At The Market Offering \| Ordinary \| Cantor Fitzgerald & Co
Shareholders Equity
Maximum aggregate offering of ordinary shares \| $								$ 75,000,000
Underwritten public offering and direct offering
Shareholders Equity
Issue of ordinary shares (in shares)				15,923,077
Share price \| $ / shares									$ 6.50
Gross proceeds from issuance of shares \| €				€ 88,115,000
Transaction cost \| €				5,499,000
Net proceeds \| €				€ 82,616,000

Consolidated Statement of Cash Flows - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash flow from operating activities
Result for the year	€ (27,735)	€ (64,204)	€ (60,799)
Adjustments for:
Other income	(3,011)
Depreciation	2,513	2,521	2,329
Results related to associates		8	217
Gain on disposal of associate			(514)
Results on derecognition of subsidiary	(131)
Share-based compensation	3,106	2,869	6,216
Financial income and expense	(1,135)	264	1,889
Results related to derecognition of financial liabilities	(1,866)	1,390
Results related to financial liabilities measured at fair value through profit or loss	(953)	(2,713)	1,880
Income tax (gains) / expenses	(78)	96	117
Changes in working capital	48,956	(4,991)	25,014
Cash generated by / (used in) operations	19,666	(64,760)	(23,651)
Corporate income tax received / (paid)	78	(96)	(117)
Interest received	2,593	106	5
Interest paid	(789)	(3,758)	(2,249)
Net cash generated by / (used in) operating activities	21,548	(68,508)	(26,012)
Cash flow from investing activities
Purchases of property, plant and equipment	(1,371)	(708)	(484)
Proceeds from sale of property, plant and equipment	60	6	59
Proceeds from sale of intellectual property	7,940
Transaction costs on sale of intellectual property	(2,351)
Net cash generated by / (used in) investing activities	4,278	(702)	(425)
Cash flow from financing activities
Proceeds from issuance of shares, net of transaction costs		14,122	108,477
Proceeds from exercise of share options	354	34	1,518
Proceeds from borrowings			1,137
Repayment of convertible loans	(1,008)	(43,372)
Proceeds from convertible loans			26,520
Repayment of lease liability	(1,621)	(1,674)	(820)
Net cash generated by / (used in) financing activities	(2,275)	(30,890)	136,832
Net increase / (decrease) in cash and cash equivalents	23,551	(100,100)	110,395
Currency effect cash and cash equivalents	599	7,351	1,291
Cash and cash equivalents at the beginning of the year	94,775	187,524	75,838
Cash and cash equivalents at the end of the year	€ 118,925	€ 94,775	€ 187,524

Investments in Financial Assets

12 Months Ended

Dec. 31, 2023

Investments in Financial Assets

Investments in Financial Assets

9. Investments in Financial Assets

Yarrow Biotechnology, Inc.

As disclosed in Note 8, Gerard Platenburg, Chief Scientific Officer at ProQR, ended his term on Yarrow’s board of directors in October 2023. From then on, ProQR no longer had significant influence over Yarrow. Yarrow was therefore derecognized as an associate and was accounted for as a financial asset and measured at fair value.

ProQR holds a 5.1% interest in Yarrow. The Company elected to recognize subsequent changes in the fair value of its investment in Yarrow in Other Comprehensive Income. In October 2023, ProQR initially recognized its investment in the Yarrow financial asset at € nil. As at December 31, 2023, the fair value of the Yarrow financial asset amounted to € nil.

Phoenicis Therapeutics, Inc.

In May 2019, the Company acquired a non-controlling interest in Wings Therapeutics Inc. (“Wings”) as part of the

strategic spin out of its Dystrophic Epidermolysis Bullosa (“DEB”) activities. In January 2021, Wings merged into

Phoenicis Therapeutics Inc. (“Phoenicis”) by means of a non-cash transaction. Consequently, Wings ceased to exist, and the related investment was derecognized. In 2021, a gain on disposal of associate was recognized amounting to € 514,000, which consisted of the € 621,000 fair value of Phoenicis equity instruments received by the Company, partly off-set by the derecognition of the carrying value of the Company’s investment in Wings of € 107,000.

ProQR holds a 3.9% interest in Phoenicis. ProQR does not have significant influence in Phoenicis. The Company elected to recognize subsequent changes in the fair value of its investment in Phoenicis in Other Comprehensive Income. In September 2023, the investment was remeasured to nil, and ProQR recognized a fair value loss of € 621,000 in other comprehensive income. As at December 31, 2023, the fair value of the Phoenicis financial asset amounted to € nil (2022: € 621,000).

Other income (Details) - EUR (€) € in Thousands	12 Months Ended
Other income (Details) - EUR (€) € in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Other income
Net gain on divestment of intellectual property	€ 2,931
Grant income	75	€ 699	€ 1,012
Other income	5	66	31
Total other income	€ 3,011	€ 765	€ 1,043

Income taxes - Deferred tax (Details) - EUR (€)	Dec. 31, 2023	Dec. 31, 2022
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax assets	€ 0
Temporary differences on right-of-use assets and related lease liabilities
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax liabilities	3,747,000	€ 3,737,000
Deferred tax assets	€ 3,984,000	€ 3,922,000

Commitments and Contingencies - Clinical support agreements (Details) € in Thousands, $ in Millions	1 Months Ended	12 Months Ended	71 Months Ended
	Dec. 31, 2023 EUR (€)	Dec. 31, 2023 EUR (€)	Dec. 31, 2023 EUR (€)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 EUR (€)
Commitments and Contingencies
Research and development commitments	€ 8,893	€ 8,893	€ 8,893		€ 8,030
Clinical support agreement with Foundation Fighting Blindness (FFB)
Commitments and Contingencies
Funding received under agreement			6,300	$ 6.8
Repayments of previously received funding	1,100
Less than 1 year
Commitments and Contingencies
Research and development commitments	€ 7,162	€ 7,162	€ 7,162
Minimum
Commitments and Contingencies
Research And Commitments Period		2 years
Minimum \| ultevursen
Commitments and Contingencies
Percentage of earn-out payments for milestones and sales to be received	5.00%	5.00%	5.00%
Maximum
Commitments and Contingencies
Research And Commitments Period		5 years
Maximum \| ultevursen
Commitments and Contingencies
Percentage of earn-out payments for milestones and sales to be received	10.00%	10.00%	10.00%

Revenue - Summary of changes in current and non-current deferred revenue (Details) - EUR (€)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Disclosure of disaggregation of revenue from contracts with customers [line items]
Current and non-current deferred income at beginning of period	€ 71,209,000
Current and non-current deferred income at end of period	64,739,000	€ 71,209,000
Eli Lilly and Company
Disclosure of disaggregation of revenue from contracts with customers [line items]
Current and non-current deferred income at beginning of period	71,209,000	18,262,000
Foreign currency translation effects	44,000	(50,000)
Current and non-current deferred income at end of period	64,739,000	71,209,000
Eli Lilly and Company \| Up-front payments
Disclosure of disaggregation of revenue from contracts with customers [line items]
Received or receivable		56,412,000
Revenue recognition	(5,996,000)	(2,646,000)
Eli Lilly and Company \| Other R&D services
Disclosure of disaggregation of revenue from contracts with customers [line items]
Received or receivable		273,000
Revenue recognition		(270,000)
Eli Lilly and Company \| Equity consideration
Disclosure of disaggregation of revenue from contracts with customers [line items]
Received or receivable		451,000
Revenue recognition	€ (518,000)	(321,000)
Yarrow Biotechnology, Inc
Disclosure of disaggregation of revenue from contracts with customers [line items]
Current and non-current deferred income at beginning of period		73,000
Foreign currency translation effects		28,000
Yarrow Biotechnology, Inc \| Up-front payments
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue recognition		(191,000)
Yarrow Biotechnology, Inc \| Other R&D services
Disclosure of disaggregation of revenue from contracts with customers [line items]
Received or receivable		256,000
Revenue recognition		(118,000)
Yarrow Biotechnology, Inc \| Equity consideration
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue recognition		€ (48,000)

Related-Party Transactions

12 Months Ended

Dec. 31, 2023

Related-Party Transactions

Related-Party Transactions

27. Related-Party Transactions

Details of transactions between the Company and related parties are disclosed below.

(a) Compensation of the Supervisory Board

The remuneration of the supervisory board members in 2023 is set out in the table below:


	2023
	Short term	Post-employment	Share-based
	employee benefits	benefits	payment	Total

	(€ in thousands)
Mr. Dinko Valerio	74	—	76	150
Mr. Antoine Papiernik*	—	—	—	—
Ms. Alison F. Lawton	50	—	76	126
Mr. James Shannon	56	—	76	132
Mr. Bart Filius	49	—	78	127
Ms. Begoña Carreño**	50	—	34	84
Ms. Theresa Heggie***	30	—	241	271
	309	—	581	890

* Mr. Papiernik stepped down from the supervisory board on May 18, 2023.

** Ms. Carreño was elected to the supervisory board on May 18, 2023. The remuneration set forth for Ms. Carreño in the table above covers the period from May 18, 2023 to December 31, 2023.

*** Ms. Heggie was elected to the supervisory board on May 18, 2023. The remuneration set forth for Ms. Heggie in the table above covers the period from May 18, 2023 to December 31, 2023. Ms. Heggie’s share-based payments include the effects of options and RSUs that were granted to her before her reappointment to the supervisory board on May 18, 2023.

The remuneration of the supervisory board members in 2022 is set out in the table below:


	2022
	Short term	Post employment	Share-based
	employee benefits	benefits	payment	Total

	(€ in thousands)
Mr. Dinko Valerio	74	—	104	178
Mr. Antoine Papiernik	—	—	—	—
Ms. Alison F. Lawton	52	—	104	156
Mr. James Shannon	59	—	104	163
Mr. Bart Filius	49	—	104	153
	234	—	416	650

The 2021 remuneration is set out in the table below:


	2021
	Short term	Post employment	Share-based
	employee benefits	benefits	payment	Total

	(€ in thousands)
Mr. Dinko Valerio	70	—	86	156
Mr. Antoine Papiernik	—	—	—	—
Ms. Alison F. Lawton	47	—	86	133
Mr. James Shannon	50	—	86	136
Mr. Bart Filius	44	—	80	124
Ms. Theresa Heggie*	29	—	77	106
	240	—	415	655

* Ms. Heggie stepped down from the supervisory board on October 1, 2021, in connection with her appointment as Chief Commercial Officer of the Company. The remuneration set forth for Ms. Heggie in the table above covers the period from January 1, 2021 to October 1, 2021.

In 2023, 2022 and 2021, Mr. Papiernik waived his compensation.

As at December 31, 2023:

●

Mr. Dinko Valerio holds 725,692 ordinary shares in the Company, as well as 192,964 options. These options either vest in four annual equal tranches of 25% starting for the first time as of the first anniversary of the date of grant, or in thirteen tranches where the first tranche vests at the first anniversary of the grant date, and the remaining options vest in twelve equal tranches of 6.25% each subsequent quarter until the fourth anniversary of the grant date. In 2023, Mr. Valerio was awarded 22,608 options to acquire ordinary shares at an exercise price of $ 3.41 per option. In 2022, Mr. Valerio was granted 23,931 options to acquire ordinary shares at an exercise price of $ 8.01 per option. In 2021, Mr. Valerio was granted 23,239 options to acquire ordinary shares at an exercise price of $ 4.20 per option. In 2021, Mr. Valerio exercised options to acquire 32,272 ordinary shares.

●

Mr. Antoine Papiernik does not hold any shares or options in the Company. As a managing partner of Sofinnova Partners SAS, the management company of Sofinnova Capital VII FCPR, holder of 2,764,194 ordinary shares, Mr. Papiernik may be deemed to have share voting and investment power with respect to such shares.

●

Ms. Alison F. Lawton holds 205,784 options. These options either vest in four annual equal tranches of 25% starting for the first time as of the first anniversary of the date of grant, or in thirteen tranches where the first tranche vests at the first anniversary of the grant date, and the remaining options vest in twelve equal tranches of 6.25% each subsequent quarter until the fourth anniversary of the grant date. In 2023, Ms. Lawton was granted 22,608 options to acquire ordinary shares at an exercise price of $ 3.41 per option. In 2022, Ms. Lawton was granted 23,931 options to acquire ordinary shares at an exercise price of $ 8.01 per option. In 2021, Ms. Lawton was granted 23,239 options to acquire ordinary shares at an exercise price of $ 4.20 per option.

●

Mr. James Shannon holds 61,538 ordinary shares in the Company and 202,044 options. These options either vest in four annual equal tranches of 25% starting for the first time as of the first anniversary of the date of grant, or in thirteen tranches where the first tranche vests at the first anniversary of the grant date, and the remaining options vest in twelve equal tranches of 6.25% each subsequent quarter until the fourth anniversary of the grant date. In 2023, Mr. Shannon was granted 22,608 options to acquire ordinary shares at an exercise price of $ 3.41 per option. In 2022, Mr. Shannon was granted 23,931 options to acquire ordinary shares at an exercise price of $ 8.01 per option. In 2021, Mr. Shannon was granted 23,239 options to acquire ordinary shares at an exercise price of $ 4.20 per option.

●

Mr. Bart Filius holds 107,148 options. These options either vest in four annual equal tranches of 25% starting for the first time as of the first anniversary of the date of grant, or in thirteen tranches where the first tranche vests at the first anniversary of the grant date, and the remaining options vest in twelve equal tranches of 6.25% each subsequent quarter until the fourth anniversary of the grant date. In 2023, Mr. Filius was granted 22,608 options to acquire ordinary shares at an exercise price of $ 3.41 per option. In 2022, Mr. Filius was granted 23,931 options to acquire ordinary shares at an exercise price of $ 8.01 per option. In 2021, Mr. Filius was granted 23,239 options to acquire ordinary shares at an exercise price of $ 4.20 per option.

●

Ms. Begoña Carreño holds 26,468 options. These options vest in thirteen tranches where the first tranche vests at the first anniversary of the grant date, and the remaining options vest in twelve equal tranches of 6.25% each subsequent quarter until the fourth anniversary of the grant date. In 2023, Ms. Carreño was granted 22,903 options to acquire ordinary shares at an exercise price of $ 3.41 per option. In 2022, Ms. Carreño was granted 3,565 options to acquire ordinary shares at an exercise price of $ 0.95 per option.

●

Ms. Theresa Heggie holds 26,499 ordinary shares in the Company and 334,756 options. These options either vest in four annual equal tranches of 25% starting for the first time as of the first anniversary of the date of grant, or in thirteen tranches where the first tranche vests at the first anniversary of the grant date, and the remaining options vest in twelve equal tranches of 6.25% each subsequent quarter until the fourth anniversary of the grant date. In 2023, Ms. Heggie was granted 14,418 options to acquire ordinary shares at an exercise price of $ 1.74 per option. In 2022, Ms. Heggie was granted 159,150 options to acquire ordinary shares at an average exercise price of $ 0.84 per option. In 2021, Ms. Heggie was granted 123,239 options to acquire ordinary shares at an average exercise price of $ 6.25 per option.

(b) Compensation of key management

Our management board is supported by our officers, or senior management. Mr. Daniel de Boer and Mr. Rene Beukema are the statutory directors of the Company. The total remuneration of the management board and senior management in 2023 amounted to € 5,508,000 with the details set out in the table below:


	2023
	Short term	Post
	employee	employment	Share-based
	benefits	benefits	payment	Total

	(€ in thousands)
Mr. D.A. de Boer¹	1,167	27	1,245	2,439
Mr. R.K. Beukema¹	892	23	395	1,310
Management Board	2,059	50	1,640	3,749
Senior Management	1,145	52	562	1,759
	3,204	102	2,202	5,508

1	Short term employee benefits include bonuses for Mr. Daniel de Boer of € 643,000 and for Mr. Rene Beukema of € 481,000 based on goals realized in 2023.

The total remuneration of the management board and senior management in 2022 amounted to € 7,536,000 with the details set out in the table below:


	2022
	Short term	Post
	employee	employment	Share-based
	benefits	benefits	payment	Total

	(€ in thousands)
Mr. D.A. de Boer¹	1,295	24	1,145	2,464
Mr. R.K. Beukema¹	284	10	169	463
Management Board	1,579	34	1,314	2,927
Senior Management	3,980	123	506	4,609
	5,559	157	1,820	7,536

1	Short term employee benefits include a bonus for Mr. Daniel de Boer of € 791,000 and for Mr. Rene Beukema of € 84,000 based on goals realized in 2022. The remuneration set forth for Mr. Beukema in the table above covers the period from July 1, 2022 to December 31, 2022.

The total remuneration of the management board and senior management in 2021 amounted to € 8,128,000 with the details set out in the table below:


	2021
	Short term	Post
	employee	employment	Share-based
	benefits	benefits	payment	Total

	(€ in thousands)
Mr. D.A. de Boer¹	733	10	1,472	2,215
Management Board	733	10	1,472	2,215
Senior Management	2,938	57	2,918	5,913
	3,671	67	4,390	8,128

1	Short term employee benefits include a bonus for Mr. Daniel de Boer of € 284,000 based on goals realized in 2021.

As at December 31, 2023:

●

Mr. Daniel de Boer holds 705,309 ordinary shares in the Company as well as 4,011,888 options. These options either vest in four annual equal tranches of 25% starting for the first time as of the first anniversary of the date of grant, or in thirteen tranches where the first tranche vests at the first anniversary of the grant date, and the remaining options vest in twelve equal tranches of 6.25% each subsequent quarter until the fourth anniversary of the grant date. In 2023, Mr. de Boer was awarded 442,182 options at an exercise price of $ 3.41 per option. In 2022, Mr. de Boer was awarded 1,650,051 options to acquire ordinary shares at an average exercise price of $ 0.76 per option. In 2021, Mr. de Boer was awarded 442,279 options at an exercise price of $ 4.20 per option. These options had a remaining weighted-average contractual life of 6.7 years as at December 31, 2023. At December 31, 2023, Mr. de Boer had not exercised any of the options that were awarded to him.

●

Mr. Rene Beukema holds 460,000 ordinary shares in the Company as well as 1,363,318 options. These options either vest in four annual equal tranches of 25% starting for the first time as of the first anniversary of the date of grant, or in thirteen tranches where the first tranche vests at the first anniversary of the grant date, and the remaining options vest in twelve equal tranches of 6.25% each subsequent quarter until the fourth anniversary of the grant date. In 2023, Mr. Beukema was awarded 132,123 options to acquire ordinary shares at an exercise price of $ 3.41 per option. In 2022, Mr. Beukema was awarded 1,000,000 options to acquire ordinary shares at an exercise price of $ 0.66 per option. These options had a remaining weighted-average contractual life of 7.6 years as at December 31, 2023. In 2023, 2022 and 2021, Mr. Beukema did not exercise any of the options that were awarded to him.

ProQR does not grant any loans, advance payments and guarantees to members of the Management and Supervisory Board.

As described in Note 8. Investments in Associates, the Company, as of October 2023, no longer has significant influence over Yarrow Biotechnology, Inc. Yarrow is therefore, no longer considered a related party as of that point onwards. The Company did not have any transactions with Yarrow in the year ended December 31, 2023. Transactions with Yarrow for the years ended December 31, 2022 and 2021 are described in Note 17. Revenue.

Earnings Per Share (Details) - EUR (€) € / shares in Units, € in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Earnings Per Share
Result attributable to owners of the Company	€ (28,119)	€ (64,424)	€ (60,740)
Weighted average number of shares outstanding	81,011,438	71,641,305	64,182,492
Basic earnings (loss) per share	€ (0.35)	€ (0.90)	€ (0.95)
Diluted earnings (loss) per share	€ (0.35)	€ (0.90)	€ (0.95)

Significant Accounting Policies (Details)	12 Months Ended
Significant Accounting Policies (Details)	Dec. 31, 2023 EUR (€)
Significant Accounting Policies
Deferred tax assets	€ 0
Number of performance obligations in collaboration and license agreements	1
Number of performance obligations in research and collaboration agreements	1

Deferred Income (Tables)

12 Months Ended

Dec. 31, 2023

Deferred Income

Summary of deferred income


	December 31,	December 31,
	2023	2022

	(€ in thousands)
Eli Lilly up-front payment and premium on equity consideration	64,739	71,209
Total deferred income	64,739	71,209
Current portion	(20,569)	(5,641)
Total non-current deferred income	44,170	65,568

Schedule of undiscounted deferred income


	Less than	Between 1	Between 2
	1 year	and 2 years	and 5 years	Over 5 years

	(€ in thousands)
At December 31, 2023
Deferred Income	20,569	27,950	16,220	—
Total	20,569	27,950	16,220	—

At December 31, 2022
Deferred Income	5,641	17,817	47,751	—
Total	5,641	17,817	47,751	—

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Taxes

Schedule of calculation tax charge


	2023		2022		2021

	(€ in thousands)
Consolidated result before corporate income taxes	(27,813)		(64,108)		(60,682)
Exclude: results related to associates	—		(8)		(217)
	(27,813)		(64,100)		(60,465)

Income tax based on domestic rate (2023 and 2022: 25.8%, 2021: 25%)	7,176		16,538		15,116
Tax effect of:
Different tax rates in foreign jurisdictions	(8)		10		18
Non-deductible expenses / non-taxable gains	(289)		133		(2,176)
Share- and loan-issue expenditures that are taxable	—		—		1,423
Change in unrecognized deductible temporary differences	(67)		(75)		(89)
Current year losses for which no deferred tax asset was recognized	(6,820)		(16,649)		(14,385)
True-up for prior year	86		(53)		(24)
Income tax benefit / (charge)	78		(96)		(117)
Effective tax rate	—	%	—	%	—	%

Financial Income and Expense (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Financial Income and Expense
Interest income Current accounts and deposits	€ 2,593	€ 106	€ 5
Current accounts and deposits	(31)	(406)	(355)
Interest expense Lease liability	(774)	(793)	(835)
Interest on loans and borrowings	(398)	(3,928)	(2,215)
Net foreign exchange benefit/(loss)	(255)	4,757	1,511
Total	1,135	(264)	(1,889)
Financial income	2,593	4,863	1,516
Interest income	2,593	106	5
Net foreign exchange benefit		4,757	1,511
Financial expenses	1,458	€ 5,127	€ 3,405
Interest costs	1,203
Net foreign exchange costs	€ 255

General Information (Details)	1 Months Ended	12 Months Ended
General Information (Details)	May 31, 2021	Dec. 31, 2023	Dec. 31, 2022
Yarrow Biotechnology, Inc
Disclosure of subsidiaries [line items]
Proportion of ownership interest in associate	8.00%		5.10%
ProQR Therapeutics Holding B.V. [Member]
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary		100.00%
ProQR Therapeutics I B.V. [Member]
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary		100.00%
ProQR Therapeutics II B.V. [Member]
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary		100.00%
ProQR Therapeutics III B.V. [Member]
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary		100.00%
ProQR Therapeutics IV B.V. [Member]
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary		100.00%
ProQR Therapeutics V B.V. [Member]
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary		100.00%
ProQR Therapeutics VI B.V. [Member]
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary		100.00%
ProQR Therapeutics VII B.V. [Member]
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary		100.00%
ProQR Therapeutics VIII B.V. [Member]
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary		100.00%
ProQR Therapeutics IX B.V. [Member]
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary		100.00%
ProQR Therapeutics I Inc. [Member]
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary		100.00%

Leases (Details) € in Thousands		1 Months Ended				12 Months Ended
Leases (Details) € in Thousands	Jul. 01, 2020 EUR (€)	Jun. 30, 2023 EUR (€)	Jun. 30, 2022 EUR (€)	Jun. 30, 2021 EUR (€)	Dec. 31, 2020 EUR (€)	Dec. 31, 2023 EUR (€) m²	Dec. 31, 2022 EUR (€)	Dec. 31, 2021 EUR (€)
Disclosure of quantitative information about right-of-use assets [line items]
Depreciation charge for right-of-use assets						€ 1,833	€ 1,737	€ 1,672
Interest expense on lease liabilities						774	793	835
Expense relating to short-term leases						28	94	70
Total cash outflow for leases						2,423	2,701	1,657
Additions to right-of-use assets during the period						1,863	592	€ 536
Total undiscounted commitment for lease agreements						€ 18,511	€ 18,646
Office and Laboratory Facility [Member] \| Leiden Netherlands
Disclosure of quantitative information about right-of-use assets [line items]
Area under lease \| m²						4,818
Renewal term						5 years
Lease liability	€ 16,203
Right-of-use asset	€ 16,332
Leases term	10 years				11 years
Lease extension term					1 year
Increase in lease liability through extension of lease terms					€ 1,260
Increase in right-of-use asset through modification of lease terms					€ 1,260
Increase in lease liabilities through remeasurement		€ 1,863	€ 592	€ 415
Increase in right-of-use asset through remeasurement of lease liability		€ 1,863	€ 592	€ 415

Shareholders' Equity - Share options and restricted stock units (Details) € in Thousands	12 Months Ended
	Dec. 31, 2023 EUR (€) Y tranche	Dec. 31, 2022 EUR (€) Y	Dec. 31, 2021 Y
Operating costs
Shareholders Equity
Compensation expenses	€ 3,106	€ 2,869
Research and development costs
Shareholders Equity
Compensation expenses	477	887
General and administrative costs
Shareholders Equity
Compensation expenses	€ 2,629	€ 1,982
Share options and restricted stock units \| Four years vesting period with 25% vesting every year
Shareholders Equity
Vesting period	4 years
Annual vesting percentage	25.00%
Share options and restricted stock units \| Four years vesting in thirteen tranches
Shareholders Equity
Vesting period	4 years
Number of tranches \| tranche	13
Number of Remaining Tranches after First Anniversary of Grant Date \| tranche	12
Quarterly vesting percentage after first tranche is vested	6.25%
Share options and restricted stock units \| Two years vesting period with 25% vesting every six months
Shareholders Equity
Vesting period	2 years
Biannual vesting percentage	25.00%
IFRS Stock options [Member]
Shareholders Equity
Term options	10 years
Risk-free interest rate	3.96%	2.57%	0.51%
Expected volatility	105.60%	101.00%	79.00%
Expected life in years	5 years
Expected life in years \| Y	5	5	5

Related-Party Transactions - Compensation (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Supervisory Board
Transactions between the Company and related parties
Short term employee benefits	€ 309	€ 234	€ 240
Share-based payment	581	416	415
Total compensation	890	650	655
Mr. Dinko Valerio
Transactions between the Company and related parties
Short term employee benefits	74	74	70
Share-based payment	76	104	86
Total compensation	150	178	156
Ms. Alison F. Lawton
Transactions between the Company and related parties
Short term employee benefits	50	52	47
Share-based payment	76	104	86
Total compensation	126	156	133
Mr. James Shannon
Transactions between the Company and related parties
Short term employee benefits	56	59	50
Share-based payment	76	104	86
Total compensation	132	163	136
Mr. Bart Filius
Transactions between the Company and related parties
Short term employee benefits	49	49	44
Share-based payment	78	104	80
Total compensation	127	153	124
Ms. Begona Carreno
Transactions between the Company and related parties
Short term employee benefits	50
Share-based payment	34
Total compensation	84
Ms. Theresa Heggie
Transactions between the Company and related parties
Short term employee benefits	30		29
Share-based payment	241		77
Total compensation	271		106
Management board and senior management
Transactions between the Company and related parties
Short term employee benefits	3,204	5,559	3,671
Post-employment benefits	102	157	67
Share-based payment	2,202	1,820	4,390
Total compensation	5,508	7,536	8,128
Management Board
Transactions between the Company and related parties
Short term employee benefits	2,059	1,579	733
Post-employment benefits	50	34	10
Share-based payment	1,640	1,314	1,472
Total compensation	3,749	2,927	2,215
Mr. D.A. de Boer
Transactions between the Company and related parties
Short term employee benefits	1,167	1,295	733
Post-employment benefits	27	24	10
Share-based payment	1,245	1,145	1,472
Total compensation	2,439	2,464	2,215
Mr. R.K. Beukema
Transactions between the Company and related parties
Short term employee benefits	892	284
Post-employment benefits	23	10
Share-based payment	395	169
Total compensation	1,310	463
Senior Management
Transactions between the Company and related parties
Short term employee benefits	1,145	3,980	2,938
Post-employment benefits	52	123	57
Share-based payment	562	506	2,918
Total compensation	€ 1,759	€ 4,609	€ 5,913

Financial Risk Management (Tables)

12 Months Ended

Dec. 31, 2023

Financial Risk Management

Schedule of undiscounted liabilities into relevant maturity groupings.


	Less than	Between 1	Between 2
	1 year	and 2 years	and 5 years	Over 5 years

	(€ in thousands)
At December 31, 2023
Borrowings	—	4,583	—	—
Lease liabilities	2,288	2,496	7,487	6,240
Trade payables and other payables	11,709	—	—	—
Total	13,997	7,079	7,487	6,240

At December 31, 2022
Borrowings	2,500	2,455	2,644	—
Lease liabilities	2,053	2,212	6,637	7,743
Trade payables and other payables	10,197	—	—	—
Total	14,750	4,667	9,281	7,743

Schedule of how fair value of financial assets and liabilities is measured


			Relationship and
			sensitivity of
	Valuation technique	Significant unobservable	Significant unobservable
Financial liabilities	and key inputs	inputs	inputs to fair value

Investment in Phoenicis Therapeutics, Inc	Market comparison technique: The valuation model is based on market multiples derived from quoted prices of companies comparable to the investee, adjusted for the effect of the non-marketability of the equity securities, and the result of the investee. The estimate is adjusted for the net debt of the investee.	Adjusted market-multiple	The estimated fair value would increase (decrease) if the adjusted market-multiple were higher (lower).

Investment in Yarrow Biotechnology, Inc.	Market comparison technique: The valuation model is based on market multiples derived from quoted prices of companies comparable to the investee, adjusted for the effect of the non-marketability of the equity securities, and the result of the investee. The estimate is adjusted for the net debt of the investee.	Adjusted market-multiple	The estimated fair value would increase (decrease) if the adjusted market-multiple were higher (lower).

Warrants and conversion options	Black-Scholes model. The following variables were taken into consideration: current underlying price of the Company's shares, options strike price, expected life, historical volatility of ProQR share returns over a period equal to the expected life, risk-free rate: based on the US Treasury yield curve rates per the valuation date (interpolated) for the expected life.	Not applicable	Not applicable

Financial Risk Management - Narrative (Details)	12 Months Ended
Financial Risk Management - Narrative (Details)	Dec. 31, 2023 EUR (€)	Dec. 31, 2022 EUR (€)
Disclosure of detailed information about borrowings [line items]
Borrowings	€ 4,292,000	€ 6,771,000
Number of large institutions at which substantially all entity's cash and cash equivalents are held	4	4
Credit limits exceeded during reporting period	€ 0
Currency risk
Disclosure of detailed information about borrowings [line items]
Foreign Currency Denominated Receivables And Trade Payable Minimum Term	30 days
Foreign Currency Denominated Receivables And Trade Payable Maximum Term	45 days
Interest rate risk
Disclosure of detailed information about borrowings [line items]
Percentage of reasonably possible increase in interest rates	10.00%
Increase (decrease) in profit (loss) before tax due to reasonably possible increase in interest rates	€ 259,000
Percentage of reasonably possible decrease in interest rates	10.00%
Increase (decrease) in profit (loss) before tax due to reasonably possible decrease in interest rates	€ (259,000)
United States of America, Dollars \| Currency risk
Disclosure of detailed information about borrowings [line items]
Net assets and liabilities denominated in U.S. dollars	€ (726,000)	€ 78,630,000
Percentage of reasonably possible weakening of foreign currency	10.00%
Increase in net loss from reasonably possible weakening of foreign currency	€ 73,000	(7,863,000)
Percentage of reasonably possible strengthening of foreign currency	10.00%
Past due or impaired
Disclosure of detailed information about borrowings [line items]
Financial assets	€ 0
Fixed interest rate
Disclosure of detailed information about borrowings [line items]
Borrowings	€ 4,292,000	€ 6,771,000

Basis of Preparation (Details) - EUR (€)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Sep. 30, 2021
Disclosure of initial application of standards or interpretations [line items]
Deferred income	€ 64,739,000	€ 71,209,000
Eli Lilly and Company
Disclosure of initial application of standards or interpretations [line items]
Deferred income	€ 64,739,000	€ 71,209,000	€ 18,262,000
Variable consideration included in transaction price				€ 0

Related-Party Transactions (Tables)

12 Months Ended

Dec. 31, 2023

Supervisory Board

Transactions between the Company and related parties

Schedule of key management personnel compensation


	2023
	Short term	Post-employment	Share-based
	employee benefits	benefits	payment	Total

	(€ in thousands)
Mr. Dinko Valerio	74	—	76	150
Mr. Antoine Papiernik*	—	—	—	—
Ms. Alison F. Lawton	50	—	76	126
Mr. James Shannon	56	—	76	132
Mr. Bart Filius	49	—	78	127
Ms. Begoña Carreño**	50	—	34	84
Ms. Theresa Heggie***	30	—	241	271
	309	—	581	890


	2022
	Short term	Post employment	Share-based
	employee benefits	benefits	payment	Total

	(€ in thousands)
Mr. Dinko Valerio	74	—	104	178
Mr. Antoine Papiernik	—	—	—	—
Ms. Alison F. Lawton	52	—	104	156
Mr. James Shannon	59	—	104	163
Mr. Bart Filius	49	—	104	153
	234	—	416	650


	2021
	Short term	Post employment	Share-based
	employee benefits	benefits	payment	Total

	(€ in thousands)
Mr. Dinko Valerio	70	—	86	156
Mr. Antoine Papiernik	—	—	—	—
Ms. Alison F. Lawton	47	—	86	133
Mr. James Shannon	50	—	86	136
Mr. Bart Filius	44	—	80	124
Ms. Theresa Heggie*	29	—	77	106
	240	—	415	655

Management board and senior management

Transactions between the Company and related parties

Schedule of key management personnel compensation


	2023
	Short term	Post
	employee	employment	Share-based
	benefits	benefits	payment	Total

	(€ in thousands)
Mr. D.A. de Boer¹	1,167	27	1,245	2,439
Mr. R.K. Beukema¹	892	23	395	1,310
Management Board	2,059	50	1,640	3,749
Senior Management	1,145	52	562	1,759
	3,204	102	2,202	5,508

1	Short term employee benefits include bonuses for Mr. Daniel de Boer of € 643,000 and for Mr. Rene Beukema of € 481,000 based on goals realized in 2023.

The total remuneration of the management board and senior management in 2022 amounted to € 7,536,000 with the details set out in the table below:


	2022
	Short term	Post
	employee	employment	Share-based
	benefits	benefits	payment	Total

	(€ in thousands)
Mr. D.A. de Boer¹	1,295	24	1,145	2,464
Mr. R.K. Beukema¹	284	10	169	463
Management Board	1,579	34	1,314	2,927
Senior Management	3,980	123	506	4,609
	5,559	157	1,820	7,536

1	Short term employee benefits include a bonus for Mr. Daniel de Boer of € 791,000 and for Mr. Rene Beukema of € 84,000 based on goals realized in 2022. The remuneration set forth for Mr. Beukema in the table above covers the period from July 1, 2022 to December 31, 2022.

The total remuneration of the management board and senior management in 2021 amounted to € 8,128,000 with the details set out in the table below:


	2021
	Short term	Post
	employee	employment	Share-based
	benefits	benefits	payment	Total

	(€ in thousands)
Mr. D.A. de Boer¹	733	10	1,472	2,215
Management Board	733	10	1,472	2,215
Senior Management	2,938	57	2,918	5,913
	3,671	67	4,390	8,128

1	Short term employee benefits include a bonus for Mr. Daniel de Boer of € 284,000 based on goals realized in 2021.

Other Taxes

12 Months Ended

Dec. 31, 2023

Other Taxes

Other Taxes

10. Other Taxes


	December 31,	December 31,
	2023	2022

	(€ in thousands)
Value added tax	523	607
	523	607

All receivables are considered short-term and due within one year.

Borrowings (Tables)

12 Months Ended

Dec. 31, 2023

Borrowings

Schedule of borrowings


	December 31,	December 31,
	2023	2022

	(€ in thousands)
Innovation credit	2,899	3,907
Accrued interest on innovation credit	1,393	1,035
Convertible loans	—	1,369
Accrued interest on convertible loans	—	460
Total borrowings	4,292	6,771
Current portion	—	(2,500)
Total non-current borrowings	4,292	4,271

Schedule of results related to derecognition of financial liabilities


	2023	2022

	(€ in thousands)
Gain on waiver of Amylon convertible loans	1,866	1,144
Loss on extinguishment of Pontifax and Kreos convertible loans	-	(2,534)
	1,866	(1,390)

Schedule of reconciliation of movements of liabilities to cash flows arising from financing activities


	Innovation	Convertible	Lease
	credit	loans	liability

	(€ in thousands)
Balance at January 1, 2022	4,552	39,538	16,282
Changes from financing cash flows
Repayment of convertible loans	—	(43,372)	—
Repayment of lease liability	—	—	(1,674)
The effect of changes in foreign exchange rates	—	1,771	—
Other changes
Interest expense	391	3,537	—
Interest paid	—	(2,612)	—
Transaction costs	—	94	—
Repayments allocated to option premium on convertible loans (equity)	—	1,482	—
Repayments recognized as result on derecognition of financial liabilities	—	2,534	—
Effect of waived loan agreements	—	(1,144)	—
Effect of lease amendments	—	—	592

Balance at January 1, 2023	4,943	1,828	15,200
Changes from financing cash flows
Repayments	(1,008)	—	(1,621)
The effect of changes in foreign exchange rates	—	—	—
Other changes
Interest expense	357	38	—
Interest paid	—	—	—
Effect of waived loan agreements	—	(1,866)	—
Effect of lease amendments	—	—	1,863

Balance at December 31, 2023	4,292	—	15,442

Revenue

12 Months Ended

Dec. 31, 2023

Revenue.

Revenue

17. Revenue

The following table summarizes details of revenue recognized in the years ended December 31, 2023, 2022 and 2021 by collaboration agreement and by category of revenue: upfront payments, other research and development service fees and equity consideration.


	2023	2022	2021

	(€ in thousands)
Up-front payments
Eli Lilly	5,996	2,646	564
Yarrow	—	191	252
Other R&D services
Eli Lilly	—	270	—
Yarrow	—	118	282
Equity consideration
Eli Lilly	518	321	69
Yarrow	—	48	168
	6,514	3,594	1,335

The table below summarizes the changes in current and non-current deferred revenue for the years ended December 31, 2023, 2022 and 2021.


	Eli Lilly	Yarrow

	(€ in thousands)
Balance at January 1, 2022	18,262	73
Received or receivable
Upfront payment	56,412	—
Other R&D services	273	256
Equity consideration	(451)	—
Revenue recognition
Upfront payment	(2,646)	(191)
Other R&D services	(270)	(118)
Equity consideration	(321)	(48)
Foreign currency translation effects	(50)	28
Balance at January 1, 2023	71,209	—
Received or receivable
Upfront payment	—	—
Equity consideration	—	—
Revenue recognition
Upfront payment	(5,996)	—
Equity consideration	(518)	—
Foreign currency translation effects	44	—
Balance at December 31, 2023	64,739	—

Eli Lilly collaboration

In September 2021, the Company entered into a global licensing and research collaboration with Lilly focused on the discovery, development, and commercialization of potential new medicines for genetic disorders in the liver and nervous system. ProQR and Lilly will use ProQR’s proprietary Axiomer RNA editing platform to progress new drug targets toward clinical development and commercialization.

Under the terms of the agreement, ProQR received an upfront payment and equity consideration, and is eligible to receive milestone payments and royalties on the net sales of any resulting products. In September 2021, the Company issued 3,989,976 shares to Lilly, resulting in gross proceeds of $ 30,000,000 (€ 25,270,000). These shares were issued at a premium of $ 2,429,000 (€ 2,047,000), which was determined to be part of the transaction price and as such was initially recognized as deferred revenue. An up-front payment of $ 20,000,000 (€ 16,849,000) was received in October 2021.

With regard to its original collaboration with Lilly, the Company concluded as follows:

●

There is one performance obligation under IFRS 15, which is the transfer of a license combined with the performance of research and development activities. The Company concluded that the license is not capable of being distinct and is not distinct in the context of the contract.

●

The transaction price of this agreement currently only includes fixed components, consisting of an up-front fee and an equity component. The agreement also contains variable components, but those are not yet included in the transaction price. Milestone payments will only be included to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the milestones is subsequently resolved. Sales-based milestones and sales-based royalties will be included as the underlying sales occur.

●

The Company recognizes revenue over time, using an input method that estimates the satisfaction of the performance obligation as the percentage of labor hours incurred compared to the total estimated labor hours required to complete the promised services.

In December 2022, the Company and Lilly amended their research and collaboration agreement described above, which expanded the collaboration. Under the amended and restated research and collaboration agreement, Lilly will gain access to additional targets in the central nervous system and peripheral nervous system with ProQR’s Axiomer platform.

As described under Note 13, pursuant to the amended and restated agreement, the Company issued 9,381,586 shares to Lilly in December 2022, resulting in gross proceeds of $ 15,000,000 (€ 14,122,000). These shares were issued at a discount of $ 480,000 (€ 451,000), which is accounted for as a reduction of the transaction price. In February 2023, ProQR also received an upfront payment of $ 60,000,000 (€ 56,412,000). Lilly has the ability to exercise an option to further expand the partnership for a consideration of $ 50,000,000.

With regard to the amended and restated research and collaboration agreement with Lilly, the Company concluded as follows:

●

There is one single performance obligation under IFRS 15, which is the transfer of a license combined with the performance of research and development activities. The Company concluded that the license is not capable of being distinct and is not distinct in the context of the contract.

●

The transaction price of this agreement currently only includes fixed components, consisting of an up-front fee and an equity component (discount). The agreement also contains variable components, but those are not yet included in the transaction price. Milestone payments will only be included to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the milestones is subsequently resolved. Sales-based milestones and sales-based royalties will be included as the underlying sales occur.

●

Yarrow Biotechnology collaboration

In May 2021, the Company entered into an exclusive worldwide license and discovery collaboration for an undisclosed target with Yarrow. Under the terms of the agreement, ProQR received an upfront payment, equity consideration and reimbursement for ongoing R&D services. ProQR was also eligible to receive milestone payments and royalties on the net sales of any resulting products. In May 2021, ProQR received an up-front payment of € 419,000 and 8% of the shares of Yarrow’s common stock (see Note 8). In 2021, ProQR also received reimbursements for R&D services performed amounting to € 178,000.

With regard to its collaboration with Yarrow, the Company concluded as follows:

●

The transaction price of this agreement currently includes both fixed and variable components. The fixed part consists of an up-front fee and an equity component. The variable part consists of a cost reimbursement for research and development activities. The agreement also contains other variable parts, but those are not yet included in the transaction price. Milestone payments will only be included to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the milestones is subsequently resolved. Sales-based milestones and sales-based royalties will be included as the underlying sales occur.

●

The Yarrow collaboration was terminated in the third quarter of 2022.

Significant Accounting Policies

12 Months Ended

Dec. 31, 2023

Significant Accounting Policies

Significant Accounting Policies

3. Significant Accounting Policies

The Company has consistently applied the following accounting policies to all periods presented in these consolidated financial statements.

(a) Basis of consolidation

(i) Subsidiaries

Subsidiaries are entities controlled by the Company. The Company controls an entity when it has power over the entity, is exposed to, 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. The Company reassesses whether or not it controls an entity if facts and circumstances indicate that there are changes to one or more of these elements. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases.

(ii) Non-controlling interests (“NCI”)

NCI are measured at their proportionate share of the acquiree's identifiable net assets at the acquisition date. Changes in the Company's interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.

(iii) Loss of control

When the Company loses control over a subsidiary, it derecognizes the assets and liabilities of the subsidiary, and any non-controlling interests and other components of equity. Any resulting gain or loss is recognized in profit or loss. Any interest retained in the former subsidiary is measured at fair value when control is lost.

(iv) Transactions eliminated on consolidation

Intra-group balances and transactions, and any unrealized income and expenses arising from intra-group transactions, are eliminated. Unrealized gains arising from transactions with equity-accounted investees are eliminated against the investment to the extent of the Company’s interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment.

(v) Associates

Associates are entities over which the Company has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.

Investments in associates are accounted for in the consolidated financial statements using the equity method of accounting. Equity accounting involves recording the investment in associates initially at cost, and recognizing the Company’s share of the post-acquisition results of associates in the consolidated income statement and the Company’s share of post-acquisition other comprehensive income in consolidated other comprehensive income. The cumulative post-acquisition movements are adjusted against the carrying amount of the investments in associates in the consolidated statement of financial position.

When the Company’s share of losses in an associate equals or exceeds its interest in the associate, the Company does not recognize further losses unless it has incurred or guaranteed obligations in respect of the associate.

(b) Classes of financial instruments

Financial instruments are both primary financial instruments, such as receivables and payables, and financial derivatives. For the Company’s primary financial instruments, reference is made to the treatment per the corresponding balance sheet item.

Financial derivatives are valued at fair value. Upon first recognition, financial derivatives are recognized at fair value and then revalued as at balance sheet date. Changes in the fair value of derivatives are generally recognized in profit or loss. If the Company is involved with hybrid contracts, the Company applies the following with regard to the embedded derivatives in the hybrid contract. Embedded derivatives are separated from the host contract and accounted for separately if the host contract is not a financial asset and the following criteria are met:

●

the economic characteristics and risk of the embedded derivative are not closely related to the economic characteristics and risks of the host contract;

●

a separate instrument with the same terms as the embedded derivative would meet the definition of a derivate; and

●

the hybrid contract is not measured at fair value with changes in fair value recognized in profit or loss.

If an embedded derivative is separated from the hybrid contract, the host contract is accounted for in accordance with the determined policies for such a contract. The embedded derivative is accounted for in accordance with the Company’s principles for the applicable derivatives.

(i) Foreign currency transactions

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions.

Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated into the functional currency at the exchange rate when the fair value was determined. Foreign currency differences are generally recognized in profit or loss. Non-monetary items that are measured based on historical cost in a foreign currency are translated at the exchange rate prevailing at the date of the transaction.

(ii) Foreign operations

The assets and liabilities of foreign operations are translated into euro at exchange rates at the reporting date. The income and expenses of foreign operations are translated into euros at the exchange rates at the dates of the transactions. Foreign currency differences are recognized in OCI and accumulated in the translation reserve, except to the extent that the translation difference is allocated to NCI.

(d) Revenue

Revenues to date have consisted principally of non-refundable upfront fees and research and development service fees in connection with collaboration and license agreements. The Company recognizes revenue when its customers obtain control of promised goods or services, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods and services. Revenue is recognized for agreements that are in scope of IFRS 15 Revenue from contracts with customers, based on the following five steps:

(i)	Identify the contract

The Company entered into collaboration and license agreements in which the Company licenses its intellectual property and/or provides research and development services. These arrangements include upfront payments, milestone payments based on clinical and regulatory criteria, research and development service fees and future sales-based milestones and sales-based royalties. In some cases, concurrently with the collaboration and license agreements, the Company enters into share purchase agreements with the customer. If this is the case, the Company analyzes whether the criteria to combine contracts, as set out by IFRS 15, are met.

(ii) Identify performance obligations

Contracts with customers can have one or more distinct performance obligations under IFRS 15. Identifying the performance obligations is based on an assessment of whether the promises in an agreement are capable of being distinct and are distinct from the other promises to transfer goods and/or services in the context of the contract. The Company assessed that there is one performance obligation in our material ongoing collaboration and license agreements, for the transfer of a license combined with performance of research and development services.

This is because the Company considers the two obligations cannot be distinct in the context of the contract as the licenses have no stand-alone value without the Company being involved in the research and development collaboration and that there is interdependence between the license and the research and development services to be provided.

(iii) Determine the transaction price

Our research and collaboration agreements include non-refundable upfront payments; equity components; milestone payments, the receipt of which is dependent upon the achievement of certain clinical, regulatory or commercial milestones; royalties on sales and research and development service fees.

a.	Non-refundable upfront payments or license fees

If the license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenue from non-refundable upfront fees allocated to this license at the point in time the license is transferred to the customer and the customer has the right to use the license.

For all our material ongoing research and collaboration agreements, the Company considers the performance obligations related to the transfer of the license as not distinct from the other promises to transfer goods and/or services; the Company uses judgement to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time. If over time, revenue is then recognized based on a pattern that best reflects the transfer of control of the service to the customer.

b.	Milestone payments other than sales-based milestones

A milestone payment, being a variable consideration, is only included in the transaction price to the extent it is highly probable that a significant reversal in the amount of cumulative revenue recognition will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The Company estimates the amount to be included in the transaction price upon achievement of the milestone event. The transaction price is then allocated to each performance obligation on a stand-alone selling price basis, for which the Company recognizes revenue as or when the performance obligations under the contract are satisfied. At the end of each reporting period, the Company re-evaluates the probability of achievement of such milestones and any related constraint, and, if necessary, adjusts the estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect revenue and earnings in the period of adjustment.

c.	Research and development service fees

Our collaboration and license agreements may include reimbursement for research and development services. R&D services are performed and satisfied over time because the customer simultaneously receives and consumes the benefits provided by us. Revenue associated with such R&D service fees is then recognized based on a pattern that best reflects the transfer of control of the service to the customer.

d.	Sales based milestone payments and royalties

Our material collaboration and license agreements include sales-based royalties, including commercial milestone payments based on the level of sales. The Company concluded that the licenses are not the predominant items to which the royalties and commercial milestone payments relate. Related revenue will be recognized as the subsequent underlying sales occur.

(iv) Allocate the transaction price

An entity shall allocate the transaction price to each performance obligation identified in a contract on a relative stand-alone selling price basis. As our collaboration and license agreements only contain one single performance obligation, the transaction price is entirely allocated to this single performance obligation.

(v) Recognize revenue

Revenue is recognized when the customer obtains control of the goods and/or services as provided in the research and collaboration agreements. Control can be transferred over time or at a point in time, which results in the recognition of revenue either over time or at a point in time.

Our research and collaboration agreements only contain one performance obligation, for which the Company’s performance creates and subsequently enhances assets (e.g. exploitable compounds) that the customers control as the assets are created and/or enhanced. As such, the Company recognizes revenue over time.

The recognition of revenue over time is based on a pattern that best reflects the satisfaction of the related performance obligation, applying the input method. The input method estimates the satisfaction of the performance obligation as the percentage of labor hours incurred compared to the total estimated labor hours required to complete the promised services.

(e) Other income

Other income includes amounts earned from third parties and are recognized when earned in accordance with the substance and under the terms of the related agreements and when it is probable that the economic benefits associated with the transaction will flow to the Company and the amount of the income can be measured reliably. The grants are recognized in other income on a systematic basis over the period the Company recognizes as expenses the related costs for which the grants are expected to compensate.

(f) Government grants — WBSO

The WBSO (“afdrachtvermindering speur- en ontwikkelingswerk”) is a Dutch fiscal facility that provides subsidies to companies, knowledge centers and self-employed people who perform research and development activities (as defined in “the WBSO Act”). Under this Act, a contribution is paid towards the labor costs of employees directly involved in research and development. The contribution is in the form of a reduction of payroll taxes and social security contributions recognized on a net basis within the labor costs. This reduction of payroll taxes and social security contributions is classified under research and developments costs.

(Government) Grant income is not recognized until there is reasonable assurance that the Company will comply with the conditions attached to them. (Government) Grants are recognized in profit or loss on a systematic basis over the period the Company recognizes as expenses the related costs for which the grants are intended to compensate.

(g) Employee benefits

(i) Short-term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(ii) Share-based payment transactions

The grant-date fair value of equity-settled share-based payment awards granted to employees is generally recognized as an expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognized is based on the number of awards that meet the related service conditions at the vesting date. For share-based payment awards with non-vesting conditions, the grant-date fair value of the share-based payment is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes.

(iii) Pension obligations

The Company operates defined contribution pension plans for all employees funded through payments to insurance companies. The Company has no legal or constructive obligation to pay further contributions once the contributions have been paid. The contributions are recognized as employee benefit expense when employees have rendered the service entitling them to the contributions. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available.

(h) Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax. It is recognized in profit or loss except to the extent that it relates to a business combination, or items recognized directly in equity or in OCI.

(i) Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the income statement because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

(ii) Deferred tax

Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Since the Company does not expect to be profitable in the foreseeable future, its deferred tax assets are valued at nil.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

(i) Property, plant and equipment

(i) Recognition and measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses. If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.

(ii) Depreciation

Depreciation is calculated to write off the cost of items of property, plant and equipment less their estimated residual values using the straight-line method over their estimated useful lives and is recognized in profit or loss. Right-of-use assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Company will obtain ownership by the end of the lease term.

The estimated useful lives of property, plant and equipment for current and comparative periods are as follows:



● buildings and leasehold improvements:	5-10	years
● laboratory equipment:	5	years
● other:	3-5	years

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

(j) Intangible assets

Expenditure on research activities is recognized as an expense in the period in which it is incurred. An internally-generated intangible asset arising from development (or from the development phase of an internal project) is recognized if, and only if, all of the following have been demonstrated:

●

the technical feasibility of completing the intangible asset so that it will be available for use or sale;

●

the intention to complete the intangible asset and use or sell it;

●

the ability to use or sell the intangible asset;

●

how the intangible asset will generate probable future economic benefits;

●

the availability of adequate technical, financial and other resources to complete the development and to use

●

or sell the intangible asset; and

●

the ability to measure reliably the expenditure attributable to the intangible asset during its development.

The amount initially recognized for internally-generated intangible assets is the sum of the expenditure incurred from the date when the intangible asset first meets the recognition criteria listed above. Where no internally generated intangible asset can be recognized, development expenditures are recognized in the consolidated statements of profit and loss and other comprehensive income in the period in which they are incurred.

Due to uncertainties inherent to the development and registration with the relevant healthcare authorities of its products, the Company estimates that the conditions for capitalization are not met until the regulatory procedures required by such healthcare authorities have been finalized. The Company currently does not own products that have been approved by the relevant healthcare authorities and this has resulted in all development costs being recognized as an expense in the period in which they are incurred.

(k) Impairment of assets

At the end of each reporting period, the Company reviews the carrying amounts of its non-current assets, including right-of-use assets, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

The recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss.

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

(l) Financial assets

All financial assets are recognized and derecognized on the trade date where the purchase or sale of a financial asset is under a contract whose terms require delivery of the financial asset within the timeframe established by the market concerned, and are initially measured at fair value and subsequently measured at amortized cost or fair value on the basis of the entity’s business model for managing the financial assets and the contractual cash flow characteristics of the financial assets.

Specifically:

●

debt instruments that are held within a business model whose objective is to collect the contractual cash flows, and that have contractual cash flows that are solely payments of principal and interest on the principal amount outstanding, are measured subsequently at amortized cost, and

●

all other debt investments and equity investments are measured subsequently at fair value through profit or loss (“FVTPL”).

The Company applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due. Trade receivables are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the group, and a failure to make contractual payments for a period of greater than 120 days past due. Impairment losses on trade receivables and contract assets are presented as net impairment losses within operating profit. Subsequent recoveries of amounts previously written off are credited against the same line item.

The Company derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or the Company transfers the right to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred.

(m) Cash and cash equivalents

Cash and cash equivalents include cash on hand and all highly liquid investments with original maturities of three months or less that are readily convertible to a known amount of cash and bear an insignificant risk of change in value.

(n) Financial liabilities and equity instruments

Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangement.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs.

Compound financial instruments

Compound financial instruments issued by the Company comprise convertible notes denominated in euro that can be converted to share capital at the option of the holder, when the number of shares to be issued is fixed and does not vary with changes in fair value.

The component parts of convertible loan notes issued by the Group are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. A conversion option that will be settled by the exchange of a fixed amount of cash or another financial asset for a fixed number of the Company’s own equity instruments is an equity instrument. At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for a similar non-convertible instrument. This amount is recorded as a liability on an amortized cost basis using the effective interest method until extinguished upon conversion or at the instrument’s maturity date.

The conversion option classified as equity is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. This is recognized and included in equity, net of income tax effects, and is not subsequently remeasured. In addition, the conversion option classified as equity will remain in equity until the conversion option is exercised, in which case, the balance recognized in equity will be transferred to share premium. Where the conversion option remains unexercised at the maturity date of the convertible loan note, the balance recognized in equity will be transferred to accumulated losses. No gain or loss is recognized in profit or loss upon conversion or expiration of the conversion option.

Transaction costs that relate to the issue of the convertible loan notes are allocated to the liability and equity components in proportion to the allocation of the gross proceeds. Transaction costs relating to the equity component are recognized directly in equity. Transaction costs relating to the liability component are included in the carrying amount of the liability component and are amortized over the lives of the convertible loan notes using the effective interest method.

Interest related to the financial liability is recognized in profit or loss.

Financial liabilities at fair value through profit or loss

Financial liabilities held for trading are classified as at fair value through profit or loss. A financial liability is classified as held for trading if it is a derivative (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument).

Financial liabilities at FVTPL are measured at fair value, with any gains or losses arising on changes in fair value recognized in profit or loss. The net gain or loss recognized is included in the ‘results related to financial liabilities measured at fair value through profit or loss’ line item in profit or loss.

Fair value is determined in the manner described in Note 5.

Other financial liabilities

Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs incurred, and are subsequently measured at amortized cost using the effective interest method, with interest expense recognized on an effective yield basis.

The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.

Borrowings and other financial liabilities are classified as ‘non-current liabilities,’ other than liabilities with maturities up to one year, which are classified as “current liabilities”.

The Company derecognizes financial liabilities when the liability is discharged, cancelled or expired. For all financial liabilities, the fair value approximates its carrying amount.

Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

(o) Leases

The Company assesses whether a contract is or contains a lease when it obtains the right to control the use of an identified asset for a period of time, in exchange for consideration. The Company recognizes a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets (such as tablets and personal computers, small items of office furniture and telephones). For these leases, the Company recognizes the lease payments in operating costs on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the interest rate implicit in the lease. When the interest rate implicit in the lease cannot be readily determined, the Company uses its incremental borrowing rate.

Lease payments included in the measurement of the lease liability comprise:

●

Fixed lease payments (including in-substance fixed payments), less any lease incentives receivable;

●

Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;

●

The amount expected to be payable by the Company under residual value guarantees;

●

The exercise price of purchase options, if the Company is reasonably certain to exercise the options; and

●

Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.

The lease liability is presented as a separate line in the consolidated statement of financial position. In the cash flow statement, repayments of the principal portion of the lease liability are included in financing activities. Payments relating to the interest component of the lease liability are included in operating activities. Short-term lease payments and payments for leases of low-value assets are included in operating activities.

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.

The Company remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:

●

The lease term has changed or there is a significant event or change in circumstances resulting in a change in the assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate

●

The lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised lease payments using an unchanged discount rate (unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used)

●

A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured based on the lease term of the modified lease by discounting the revised lease payments using a revised discount rate at the effective date of the modification

The right-of-use asset comprises the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day, less any lease incentives received and any initial direct costs. It is subsequently measured at cost less accumulated depreciation and impairment losses.

Whenever the Company incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions of the lease, a provision is recognized and measured under IAS 37. To the extent that the costs relate to a right-of-use asset, the costs are included in the related right-of-use asset, unless those costs are incurred to produce inventories.

Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Company expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.

The right-of-use asset is presented under Property, Plant and Equipment in the consolidated statement of financial position, in the category Buildings and leasehold improvements.

As a practical expedient, IFRS 16 permits a lessee not to separate non-lease components, and instead account for any lease and associated non-lease components as a single arrangement. The Company has used this practical expedient.

(p) Non-current assets held for sale

Non-current assets (and disposal groups) classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell.

Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition. Management must be committed to the sale which should be expected to qualify for recognition as a completed sale within one year from the date of classification.

When the Company is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the Company will retain a non-controlling interest in its former subsidiary after the sale. When the Company is committed to a sale plan involving disposal of an investment in an associate or, a portion of an investment in an associate, the investment, or the portion of the investment in the associate, that will be disposed of is classified as held for sale when the criteria described above are met. The Company then ceases to apply the equity method in relation to the portion that is classified as held for sale. Any retained portion of an investment in an associate that has not been classified as held for sale continues to be accounted for using the equity method.

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2023

Earnings Per Share

Schedule of basic and diluted earnings per share


	2023		2022		2021
Result attributable to owners of the Company (€ in thousands)		(28,119)		(64,424)		(60,740)
Weighted average number of shares outstanding		81,011,438		71,641,305		64,182,492
Basic (and diluted) earnings per share (€ per share)	€	(0.35)	€	(0.90)	€	(0.95)

Subsequent events

12 Months Ended

Dec. 31, 2023

Subsequent events

Subsequent events

29. Subsequent events

No significant events occurred after the balance sheet date.

Shareholders' Equity - Movements in the number of options outstanding (Details)	12 Months Ended
	Dec. 31, 2023 EUR (€) Option Y € / shares	Dec. 31, 2022 EUR (€) Option Y € / shares	Dec. 31, 2021 Option Y € / shares
IFRS Stock options [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Weighted average fair value per stock option \| €	€ 2.14	€ 0.67
Term options	10 years
Expected life in years	5 years
Option life, share options granted \| Y	5	5	5
Stock options outstanding, beginning of year \| Option	11,279,210	7,643,143	7,021,235
Granted \| Option	1,793,449	5,230,405	1,492,034
Forfeited \| Option	(276,272)	(1,177,622)	(341,448)
Exercised \| Option	(337,746)	(1,590)	(474,887)
Expired \| Option	(1,272,401)	(415,126)	(53,791)
Stock options outstanding, end of the year \| Option	11,186,240	11,279,210	7,643,143
Exercisable stock options, end of the year \| Option	6,679,018	5,235,914	4,221,503
Average exercise price, beginning of year (in euro per share)	€ 3.66	€ 6.13	€ 6.47
Granted (in euro per share)	2.76	0.89	4.34
Forfeited (in euro per share)	4.62	5.84	8.68
Exercised (in euro per share)	1.07	2.72	3.35
Expired (in euro per share)	7.80	7.94	9.53
Average exercise price, end of the year (in euro per share)	3.10	3.66	€ 6.13
Options exercised during the year	€ 1.45	€ 5.26
Weighted average life	6 years 9 months 18 days	7 years
IFRS Restricted Stock Units [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Weighted average fair value per stock option \| €	€ 2.76	€ 1.06
Minimum \| IFRS Stock options [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Exercise price	€ 0.60	€ 0.62
Maximum \| IFRS Stock options [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Exercise price	€ 19.80	€ 20.51

New standards and interpretations not yet adopted

12 Months Ended

Dec. 31, 2023

New standards and interpretations not yet adopted

New standards and interpretations not yet adopted

4. New standards and interpretations not yet adopted

A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after January 1, 2024 and have not been applied in preparing these consolidated financial statements. There are no standards that are not yet effective and that would be expected to have a material impact on the Company in the current or future reporting periods and on foreseeable future transactions. The Company does not plan to adopt these standards early.

Auditor fees (Details) - EUR (€) € in Thousands	12 Months Ended
Auditor fees (Details) - EUR (€) € in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Auditor fees
Audit fees	€ 588	€ 512	€ 419
Audit-related fees		32	64
Total	€ 588	€ 544	€ 483

Segment Information

12 Months Ended

Dec. 31, 2023

Segment Information

Segment Information

6. Segment Information

The Company operates in one reportable segment, which comprises the discovery and development of innovative, RNA based therapeutics. The management board is identified as the chief operating decision maker. The management board reviews the operating results regularly to make decisions about resources and to assess overall performance.

Revenues are generated from external customers whose main registered offices are all geographically located in the United States. Substantially all non-current assets of the Company are located in the Netherlands. The amounts provided to the management board with respect to total assets and liabilities are measured in a manner consistent with that of the financial statements.

Financial Income and Expense

12 Months Ended

Dec. 31, 2023

Financial Income and Expense

Financial Income and Expense

21. Financial Income and Financial Expense


	2023	2022	2021

	(€ in thousands)
Interest income:
Current accounts and deposits	2,593	106	5
Interest costs:
Current accounts and deposits	(31)	(406)	(355)
Lease liability	(774)	(793)	(835)
Loans and borrowings	(398)	(3,928)	(2,215)
Foreign exchange result:
Net foreign exchange benefit/(loss)	(255)	4,757	1,511
	1,135	(264)	(1,889)

Financial income amounting to € 2,593,000 (2022: € 4,863,000, 2021: € 1,516,000) consists of interest income of € 2,593,000 (2022: € 106,000, 2021: € 5,000) and a net foreign exchange benefit of € 4,757,000 and € 1,511,000 for the years ended December 31, 2022, and 2021. Financial expenses amounting to € 1,458,000 consist of interest costs of € 1,203,000 and net foreign exchange costs of € 255,000. Financial expenses amounted to € 5,127,000 and € 3,405,000 in 2022 and 2021 respectively, and wholly consisted of interest costs.

Auditor fees

12 Months Ended

Dec. 31, 2023

Auditor fees

Auditor fees

28. Auditor fees

The fees for services provided by our external auditors, KPMG Accountants N.V. for the years ended December 31, 2023, 2022 and 2021, are specified below for each of the financial years indicated:


	2023	2022	2021

	(€ in thousands)
Audit fees	588	512	419
Audit-related fees	—	32	64
	588	544	483

Audit fees consist of aggregate fees for professional services provided in connection with the annual audit of our financial statements. Audit-related fees consist of procedures relating to share offerings, such as comfort letters, as well as consents and review of documents filed with the SEC.

Borrowings - Reconciliation of movements of liabilities to cash flows arising from financing activities (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Innovation credit
Disclosure of detailed information about borrowings [line items]
Liabilities arising from financing activities, beginning of the period	€ 4,943	€ 4,552
Repayment	(1,008)
Interest expense	357	391
Liabilities arising from financing activities, end of the period	4,292	4,943
Convertible loans
Disclosure of detailed information about borrowings [line items]
Liabilities arising from financing activities, beginning of the period	1,828	39,538
Repayment		(43,372)
The effect of changes in foreign exchange rates		1,771
Interest expense	38	3,537
Interest paid		(2,612)
Transaction costs		94
Repayments allocated to option premium on convertible loans (equity)		1,482
Repayments recognized as result on derecognition of financial liabilities		2,534
Effect of waived loan agreements	(1,866)	(1,144)
Liabilities arising from financing activities, end of the period		1,828
Lease liability
Disclosure of detailed information about borrowings [line items]
Liabilities arising from financing activities, beginning of the period	15,200	16,282
Repayment	(1,621)	(1,674)
Effect of lease amendments	1,863	592
Liabilities arising from financing activities, end of the period	€ 15,442	€ 15,200

Commitments and Contingencies - Claims and Patent License Agreement (Details) $ / shares in Units, € in Thousands	12 Months Ended
	Dec. 31, 2022 EUR (€)	Dec. 31, 2021 EUR (€)	Dec. 31, 2019 USD ($) $ / shares	Dec. 31, 2018 USD ($) $ / shares	Dec. 31, 2023 claim
Commitments and Contingencies
Shares issued in the period \| €	€ 14,572	€ 108,477
Claims known to management related to activities of company \| claim					0
Agreement with Ionis Pharmaceuticals to license QR-1123
Commitments and Contingencies
Collaborative arrangement, upfront payment made in ordinary shares to counterparty \| $			$ 3,501,000	$ 2,500,000
Collaborative arrangement, price per share paid to counterparty \| $ / shares			$ 9.43	$ 22.23
Collaboration Agreement, premium on share price paid				20.00%
Collaboration agreement, measurement period for volume weighted average price per share				20 days

Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2023

Shareholders Equity

Schedule of Share capital


	Number of shares 2023	Number of shares 2022	Number of shares 2021
	Ordinary	Ordinary	Ordinary
Balance at January 1	84,246,967	74,865,381	54,131,553
Issued for cash	—	9,381,586	20,498,451
Issued for services	—	—	112,657
Exercise of share options / vesting of RSUs	537,513	144,688	474,887
Treasury shares issued (transferred)	(536,096)	(144,688)	(352,167)
Balance at December 31	84,248,384	84,246,967	74,865,381

Schedule of fair value of options calculated using Black-Scholes option pricing model and weighted average assumptions utilized


	Options granted		Options granted		Options granted
	in 2023		in 2022		in 2021
Risk-free interest rate	3.960	%	2.570	%	0.510	%
Expected dividend yield	—	%	—	%	—	%
Expected volatility	105.6	%	101.0	%	79.0	%
Expected life in years	5	years	5	years	5	years

Schedule of Movements in the number of options outstanding and weighted average exercise prices


	2023			2022			2021
	Number of	Average		Number of	Average		Number of	Average
	options	exercise price		options	exercise price		options	exercise price
Balance at January 1	11,279,210	€	3.66	7,643,143	€	6.13	7,021,235	€	6.47
Granted	1,793,449	€	2.76	5,230,405	€	0.89	1,492,034	€	4.34
Forfeited	(276,272)	€	4.62	(1,177,622)	€	5.84	(341,448)	€	8.68
Exercised	(337,746)	€	1.07	(1,590)	€	2.72	(474,887)	€	3.35
Expired	(1,272,401)	€	7.80	(415,126)	€	7.94	(53,791)	€	9.53
Balance at December 31	11,186,240	€	3.10	11,279,210	€	3.66	7,643,143	€	6.13
Exercisable at December 31	6,679,018			5,235,914			4,221,503

Schedule of movements in the number of RSUs outstanding


	2023	2022	2021
	Number of	Number of	Number of
	RSUs	RSUs	RSUs
Balance at January 1	370,962	536,118	—
Granted	52,319	353,116	545,613
Forfeited	(66,881)	(371,102)	(9,495)
Released	(190,094)	(147,170)	—
Balance at December 31	166,306	370,962	536,118

Cash and Cash Equivalents

12 Months Ended

Dec. 31, 2023

Cash and Cash Equivalents.

Cash and Cash Equivalents

12. Cash and Cash Equivalents


	December 31,	December 31,
	2023	2022

	(€ in thousands)
Cash at banks	59,775	94,775
Deposits	59,150	—
	118,925	94,775

The cash at banks is at full disposal of the Company. Deposits are fixed for at most 3 month periods at a time.

Operating Costs (Details) - EUR (€) € in Thousands	12 Months Ended
Operating Costs (Details) - EUR (€) € in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Operating costs
Employee benefits	€ 20,349	€ 30,286	€ 26,320
External R&D costs	4,809	19,824	15,580
Laboratory costs and other consumables	3,473	3,111	2,709
Advisory and legal costs	4,262	6,766	4,674
Insurance costs	1,458	1,895	1,979
Depreciation	2,513	2,521	2,329
Patent and license expense	303	611	428
Other	4,217	4,504	5,569
Total operating costs	€ 41,384	€ 69,518	€ 59,588

Cash and Cash Equivalents (Tables)

12 Months Ended

Dec. 31, 2023

Cash and Cash Equivalents.

Cash and Cash Equivalents


	December 31,	December 31,
	2023	2022

	(€ in thousands)
Cash at banks	59,775	94,775
Deposits	59,150	—
	118,925	94,775

Significant Accounting Policies - Estimated useful lives (Details)	12 Months Ended
	Dec. 31, 2023
Buildings and Leasehold improvements \| Minimum
Disclosure Of Detailed Information About Intangibles, Property, Plant And Equipment [Line Items]
Estimated useful lives, property, plant and equipment	5 years
Buildings and Leasehold improvements \| Maximum
Disclosure Of Detailed Information About Intangibles, Property, Plant And Equipment [Line Items]
Estimated useful lives, property, plant and equipment	10 years
Laboratory equipment
Disclosure Of Detailed Information About Intangibles, Property, Plant And Equipment [Line Items]
Estimated useful lives, property, plant and equipment	5 years
Other \| Minimum
Disclosure Of Detailed Information About Intangibles, Property, Plant And Equipment [Line Items]
Estimated useful lives, property, plant and equipment	3 years
Other \| Maximum
Disclosure Of Detailed Information About Intangibles, Property, Plant And Equipment [Line Items]
Estimated useful lives, property, plant and equipment	5 years

Shareholders' Equity - Movements in the number of RSUs outstanding (Details) - EquityInstruments	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Shareholders Equity
Number of RSUs, Beginning balance	370,962	536,118
Number of RSUs, Granted	52,319	353,116	545,613
Number of RSUs, Forfeited	(66,881)	(371,102)	(9,495)
Number of RSUs, Released	(190,094)	(147,170)
Number of RSUs, Ending balance	166,306	370,962	536,118

Consolidated Statement of Financial Position - EUR (€) € in Thousands	Dec. 31, 2023	Dec. 31, 2022
Assets
Property, plant and equipment	€ 16,897	€ 16,240
Investments in financial assets		621
Non-current assets	16,897	16,861
Other taxes	523	607
Prepayments and other receivables	1,538	59,078
Cash and cash equivalents	118,925	94,775
Current assets	120,986	154,460
Total assets	137,883	171,321
Shareholders' equity
Share capital	3,370	3,370
Share premium	412,894	412,540
Reserves	25,976	30,264
Accumulated deficit	(400,850)	(379,109)
Equity attributable to owners of the Company	41,390	67,065
Non-controlling interests		(384)
Total equity	41,390	66,681
Liabilities
Borrowings	4,292	4,271
Lease liabilities	13,828	13,813
Deferred income	44,170	65,568
Non-current liabilities	62,290	83,652
Borrowings		2,500
Lease liabilities	1,614	1,387
Derivative financial instruments	311	1,263
Trade payables	1,541	392
Social securities and other taxes	1,659	1,118
Deferred income	20,569	5,641
Other current liabilities	8,509	8,687
Current liabilities	34,203	20,988
Total liabilities	96,493	104,640
Total equity and liabilities	€ 137,883	€ 171,321

Shareholders' Equity

12 Months Ended

Dec. 31, 2023

Shareholders Equity

Shareholders Equity

13. Shareholders’ Equity

(a) Share capital


	Number of shares 2023	Number of shares 2022	Number of shares 2021
	Ordinary	Ordinary	Ordinary
Balance at January 1	84,246,967	74,865,381	54,131,553
Issued for cash	—	9,381,586	20,498,451
Issued for services	—	—	112,657
Exercise of share options / vesting of RSUs	537,513	144,688	474,887
Treasury shares issued (transferred)	(536,096)	(144,688)	(352,167)
Balance at December 31	84,248,384	84,246,967	74,865,381

The authorized share capital of the Company amounting to € 13,600,000 consists of 170,000,000 ordinary shares and 170,000,000 preference shares with a par value of € 0.04 per share. At December 31, 2023, 84,248,384 ordinary shares were issued. 81,354,592 ordinary shares were fully paid, and 2,893,792 ordinary shares were held by the Company as treasury shares (2022: 3,429,888).

In April 2021, the Company consummated an underwritten public offering of 15,923,077 ordinary shares at an issue price of $ 6.50 per share. The gross proceeds from this offering amounted to € 88,115,000 while the transaction costs amounted to € 5,499,000, resulting in net proceeds of € 82,616,000.

In September 2021, the Company issued 3,989,976 shares to Eli Lilly and Company (“Lilly”) pursuant to the licensing and research collaboration between the Company and Lilly, resulting in gross proceeds of € 25,270,000, with no significant transaction costs. This amount excludes a premium paid by Lilly that is considered to be part of the transaction price of the Collaboration agreement (refer to Note 17).

In November, 2021, the Company filed a shelf registration statement, which permitted: (a) the offering, issuance and sale by the Company of up to a maximum aggregate offering price of $ 300,000,000 of its ordinary shares, warrants and/or units; and (b) as part of the $ 300,000,000, the offering, issuance and sale by us of up to a maximum aggregate offering price of $ 75,000,000 of its ordinary shares that may be issued and sold under a sales agreement with Cantor Fitzgerald & Co in one or more at-the-market offerings. In 2021 and 2022, no shares were issued pursuant to this ATM facility.

In December 2022, the Company issued 9,381,586 shares to Lilly pursuant to the amended and restated licensing and research collaboration between the Company and Lilly, resulting in gross proceeds of € 14,122,000, with no significant transaction costs.

(b) Equity settled employee benefit reserve

The costs of share options and RSUs for employees, members of the Supervisory Board and members of the Management Board are recognized in the income statement, together with a corresponding increase in equity during the vesting period, taking into account (deferral of) corporate income taxes. The accumulated expense of share-based compensation recognized in the income statement is shown separately in the equity category ‘equity settled employee benefit reserve’ in the ‘statement of changes in equity’. On September 25, 2017, we established a Dutch foundation named Stichting Bewaarneming Aandelen ProQR for holding shares in trust for employees, members of the Management Board and members of the Supervisory Board of the Company and its group companies who from time to time could exercise options under the Company’s equity incentive plans.

The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations.

(d) Share options and restricted stock units

The Company operates an equity-settled share-based compensation plan which was introduced in 2013. Options and RSUs may be granted to employees, members of the Supervisory Board, members of the Management Board and consultants. The compensation expenses included in operating costs for this plan were € 3,106,000 in 2023 (2022: € 2,869,000), of which € 2,629,000 (2022: € 1,982,000) was recorded in general and administrative costs and € 477,000 (2022: € 887,000) was recorded in research and development costs based on employee allocation.

Options granted under this stock option plan are exercisable once vested. Any vesting schedule may be attached to the granted options and RSUs. Typical vesting periods are:

●

Four years, with 25% vesting after every year.

●

Four years, in thirteen tranches where the first tranche vests at the first anniversary of the grant date, and the remaining options vest in twelve equal tranches of 6.25% each subsequent quarter until the fourth anniversary of the grant date.

●

Two years, with 25% vesting after every six months.

The options expire ten years after date of grant. Options granted under the stock option plan are granted at exercise prices which equal either the face value or the fair value of the ordinary shares of the Company at the date of the grant.

The fair value of the options is estimated at the date of grant using the Black-Scholes option-pricing model, with on average the following assumptions:


	Options granted		Options granted		Options granted
	in 2023		in 2022		in 2021
Risk-free interest rate	3.960	%	2.570	%	0.510	%
Expected dividend yield	—	%	—	%	—	%
Expected volatility	105.6	%	101.0	%	79.0	%
Expected life in years	5	years	5	years	5	years

The resulting weighted average grant date fair value of the options amounted to € 2.14 in 2023 (2022: € 0.67). The stock options granted have a 10-year life following the grant date and are assumed to be exercised five years from date of grant for all awards.

The fair value of RSUs is determined at the grant date by using the Company’s share price at the grant date. The resulting weighted average grant date fair value of the RSUs amounted to € 2.76 in 2023 (2022: € 1.06).

Movements in the number of options outstanding and their related weighted average exercise prices are as follows:


	2023			2022			2021
	Number of	Average		Number of	Average		Number of	Average
	options	exercise price		options	exercise price		options	exercise price
Balance at January 1	11,279,210	€	3.66	7,643,143	€	6.13	7,021,235	€	6.47
Granted	1,793,449	€	2.76	5,230,405	€	0.89	1,492,034	€	4.34
Forfeited	(276,272)	€	4.62	(1,177,622)	€	5.84	(341,448)	€	8.68
Exercised	(337,746)	€	1.07	(1,590)	€	2.72	(474,887)	€	3.35
Expired	(1,272,401)	€	7.80	(415,126)	€	7.94	(53,791)	€	9.53
Balance at December 31	11,186,240	€	3.10	11,279,210	€	3.66	7,643,143	€	6.13
Exercisable at December 31	6,679,018			5,235,914			4,221,503

The options outstanding at December 31, 2023 had an exercise price in the range of € 0.60 to € 19.80 (2022: € 0.62 to € 20.51) and a weighted-average contractual life of 6.8 years (2022: 7.0 years). The weighted-average share price at the date of exercise for share options exercised in 2023 was € 1.45 (2022: € 5.26).

Movements in the number of RSUs outstanding are as follows:


	2023	2022	2021
	Number of	Number of	Number of
	RSUs	RSUs	RSUs
Balance at January 1	370,962	536,118	—
Granted	52,319	353,116	545,613
Forfeited	(66,881)	(371,102)	(9,495)
Released	(190,094)	(147,170)	—
Balance at December 31	166,306	370,962	536,118

Refer to Note 27 for the share-based compensation granted to key management personnel.

Deferred Income - Summary of deferred income - Undiscounted deferred income by maturity (Details) - EUR (€) € in Thousands	Dec. 31, 2023	Dec. 31, 2022
Less than 1 year
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items]
Deferred income, undiscounted	€ 20,569	€ 5,641
Between 1 and 2 years
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items]
Deferred income, undiscounted	27,950	17,817
Between 2 and 5 years
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items]
Deferred income, undiscounted	€ 16,220	€ 47,751

Investments in Associates (Details) - 12 months ended Dec. 31, 2022 € in Thousands	EUR (€)	USD ($)
Investments in associates
Investments in associates at beginning of period	€ 8
Share of loss from continuing operations	€ (8)
Yarrow Biotechnology, Inc
Investments in associates
Investments in associates at end of period \| $		$ 0

Employee Benefits (Details) € in Thousands	12 Months Ended
Employee Benefits (Details) € in Thousands	Dec. 31, 2023 EUR (€) employee	Dec. 31, 2022 EUR (€) employee	Dec. 31, 2021 EUR (€) employee
Employee Benefits
Wages and salaries	€ 13,797	€ 23,441	€ 16,838
Social security costs	2,480	2,661	2,124
Pension costs - defined contribution plans	966	1,315	1,142
Equity-settled share based payments	3,106	2,869	6,216
Total employee benefits expense	€ 20,349	€ 30,286	€ 26,320
Average number of employees for the period \| employee	144.0	163.0	163.0
Research and Development \| employee	122.4	103.5	140.7
General and Administrative \| employee	34.2	26.7	40.9
Total number of employees at December 31 (converted to FTE) \| employee	156.6	130.2	181.6
WBSO subsidies received for wages and salaries	€ 1,170	€ 792	€ 695
Netherlands
Employee Benefits
Total number of employees at December 31 (converted to FTE) \| employee	153.6	112.4

Employee Benefits

12 Months Ended

Dec. 31, 2023

Employee Benefits

Employee Benefits

20. Employee Benefits


	2023	2022	2021

	(€ in thousands)
Wages and salaries	13,797	23,441	16,838
Social security costs	2,480	2,661	2,124
Pension costs — defined contribution plans	966	1,315	1,142
Equity-settled share based payments	3,106	2,869	6,216
	20,349	30,286	26,320
Average number of employees for the period	144.0	163.0	163.0

Employees per activity at December 31 (converted to FTE):


	December 31, 2023	December 31, 2022	December 31, 2021
Research and Development	122.4	103.5	140.7
General and Administrative	34.2	26.7	40.9
Total number of employees (converted to FTE)	156.6	130.2	181.6

Of all employees 153.6 FTE are employed in the Netherlands (2022: 112.4 FTE).

Included in the wages and salaries for 2023 is a credit of € 1,170,000 (2022: € 792,000, 2021: € 695,000) with respect to WBSO subsidies.

General Information

12 Months Ended

Dec. 31, 2023

General Information

General Information

1. General Information

ProQR Therapeutics N.V. (“ProQR” or “the Company”), is a biotechnology company domiciled in the Netherlands that primarily focuses on the discovery and development of novel therapeutic medicines.

Since September 18, 2014, the Company’s ordinary shares are listed on Nasdaq. They are currently trading at Nasdaq Capital Market under ticker symbol PRQR.

The Company was incorporated in the Netherlands, on February 21, 2012 and was reorganized from a private company with limited liability to a public company with limited liability on September 23, 2014. The Company has its statutory seat in Leiden, the Netherlands and is registered in the Trade Register at the Chamber of Commerce under number 54600790. The address of its headquarters and registered office is Zernikedreef 9, 2333 CK Leiden, the Netherlands.

At December 31, 2023, ProQR Therapeutics N.V. is the ultimate parent company of the following entities:

●

ProQR Therapeutics Holding B.V. (the Netherlands, 100%)

●

ProQR Therapeutics I B.V. (the Netherlands, 100%)

●

ProQR Therapeutics II B.V. (the Netherlands, 100%)

●

ProQR Therapeutics III B.V. (the Netherlands, 100%)

●

ProQR Therapeutics IV B.V. (the Netherlands, 100%)

●

ProQR Therapeutics V B.V. (the Netherlands, 100%)

●

ProQR Therapeutics VI B.V. (the Netherlands, 100%)

●

ProQR Therapeutics VII B.V. (the Netherlands, 100%)

●

ProQR Therapeutics VIII B.V. (the Netherlands, 100%)

●

ProQR Therapeutics IX B.V. (the Netherlands, 100%)

●

ProQR Therapeutics I Inc. (United States, 100%)

ProQR Therapeutics N.V. is also statutory director of Stichting Bewaarneming Aandelen ProQR (“ESOP Foundation”) and has full control over this entity.

As used in these consolidated financial statements, unless the context indicates otherwise, all references to “ProQR”, the “Company” or the “Group” refer to ProQR Therapeutics N.V. including its subsidiaries and the ESOP Foundation.

Revision of comparative figures

In the Company’s application of IAS 21 The Effects of Changes in Foreign Exchange Rates, certain deferred income positions were incorrectly treated as monetary items in 2021 and 2022. To correct for the effects of this error, which is immaterial for all affected prior periods, the comparative figures for the years ended December 31, 2022 and December 2021 have been revised as follows:

●

In the Statement of financial position as at December 31, 2022, equity attributable to owners of the Company increased by € 1,568,000 while total deferred income decreased by € 1,568,000.

●

In the Statement of profit or loss and other comprehensive income (“OCI”) for the years ended December 31, 2022, and December 31, 2021, revenue decreased by € 443,000 and € 19,000, respectively, and financial income increased by € 1,130,000 and € 900,000 respectively. Net loss for the years ended December 31, 2022 and December 31, 2021, decreased by € 687,000 and € 881,000, respectively.

●

In the Statement of changes in equity, accumulated deficit at January 1, 2022 decreased by € 881,000.

●

In the Statement of cash flows for the years ended December 31, 2022, and December 31, 2021, in addition to the above revisions in result for the year and net financial income and expense, changes in working capital decreased by € 443,000 and € 19,000, respectively. Net cash used in operating activities for the years ended December 31, 2022 and December 31, 2021, was not affected by the revision.

●

In disclosure Note 5 Financial Risk Management to the financial statements, under item (a) market risk, our net position of assets and liabilities denominated in U.S. dollars increased by € 72,777,000 at December 31, 2022.

Investments in Financial Assets (Details) - EUR (€) € in Thousands	1 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2023	Dec. 31, 2021	Oct. 31, 2023	Dec. 31, 2022
Disclosure of Investment in Financial Asset and Gain on Disposal of Associate [Line items]
Fair value loss on investment in financial asset designated as at FVTOCI		€ (621)
Gain (loss) on disposal of associate			€ 514
Yarrow Biotechnology, Inc
Disclosure of Investment in Financial Asset and Gain on Disposal of Associate [Line items]
Proportion of ownership interest		5.10%
Financial assets at fair value through other comprehensive income		€ 0		€ 0
Phoenicis Therapeutics Inc.
Disclosure of Investment in Financial Asset and Gain on Disposal of Associate [Line items]
Proportion of ownership interest		3.90%
Financial assets at fair value through other comprehensive income	€ 0	€ 0			€ 621
Fair value loss on investment in financial asset designated as at FVTOCI	€ (621)
Gain (loss) on disposal of associate			621
Wings Therapeutics Inc
Disclosure of Investment in Financial Asset and Gain on Disposal of Associate [Line items]
Gain (loss) on disposal of associate			€ (107)

Consolidated Statement of Changes in Equity - EUR (€) € in Thousands	Total	Share capital	Share Premium	Equity Settled Employee Benefit Reserve	Option premium on convertible loan	Translation Reserve	Accumulated Deficit	Non-controlling Interests	Total
Balance at beginning of period at Dec. 31, 2020	€ 57,091	€ 2,165	€ 288,757	€ 23,825	€ 280	€ (189)	€ (257,747)	€ (545)	€ 56,546
Result for the year	(60,740)						(60,740)	(59)	(60,799)
Other comprehensive income (loss)	619					619			619
Recognition of share-based payments	6,603	5	382	6,216					6,603
Issue of ordinary shares	108,477	820	107,657						108,477
Equity component of convertible loan	1,146				1,146				1,146
Shares options lapsed				(522)			522
Shares options exercised	1,518	5	1,513	(1,076)			1,076		1,518
Balance at end of period at Dec. 31, 2021	114,714	2,995	398,309	28,443	1,426	430	(316,889)	(604)	114,110
Result for the year	(64,424)						(64,424)	220	(64,204)
Other comprehensive income (loss)	782					782			782
Recognition of share-based payments	2,869			2,869					2,869
Issue of ordinary shares	14,572	375	14,197						14,572
Equity component of convertible loan	(1,482)				€ (1,426)		(56)		(1,482)
Shares options lapsed				(1,817)			1,817
Shares options exercised	34		34	(443)			443		34
Balance at end of period at Dec. 31, 2022	67,065	3,370	412,540	29,052		1,212	(379,109)	(384)	66,681
Result for the year	(28,119)						(28,119)	€ 384	(27,735)
Other comprehensive income (loss)	(1,016)					(395)	(621)		(1,016)
Recognition of share-based payments	3,106			3,106					3,106
Shares options lapsed				(6,280)			6,280
Shares options exercised	354		354	(719)			719		354
Balance at end of period at Dec. 31, 2023	€ 41,390	€ 3,370	€ 412,894	€ 25,159		€ 817	€ (400,850)		€ 41,390

- Definition

The amount of residual interest in the assets of the entity after deducting all its liabilities.

+ 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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-URIDate 2023-03-23

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2023-01-01
-Paragraph 23
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2023-en-r&anchor=para_23&doctype=Standard
-URIDate 2023-03-23

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Name IFRS
-Number 12
-IssueDate 2023-01-01
-Paragraph B10
-Subparagraph b
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=12&code=ifrs-tx-2023-en-r&anchor=para_B10_b&doctype=Appendix&subtype=B
-URIDate 2023-03-23

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Name IFRS
-Number 17
-IssueDate 2023-01-01
-Paragraph 113
-Subparagraph b
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=17&code=ifrs-tx-2023-en-r&anchor=para_113_b&doctype=Standard
-URIDate 2023-03-23

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 1
-IssueDate 2023-01-01
-Paragraph 81A
-Subparagraph a
-URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=1&code=ifrs-tx-2023-en-r&anchor=para_81A_a&doctype=Standard
-URIDate 2023-03-23

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 1
-IssueDate 2023-01-01
-Paragraph 106
-Subparagraph d
-Clause i
-URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=1&code=ifrs-tx-2023-en-r&anchor=para_106_d_i&doctype=Standard
-URIDate 2023-03-23

+ Details

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2023

Significant Accounting Policies

Basis of consolidation

(a) Basis of consolidation

(i) Subsidiaries

(ii) Non-controlling interests (“NCI”)

(iii) Loss of control

(iv) Transactions eliminated on consolidation

(v) Associates

Classes of financial instruments

(b) Classes of financial instruments

●

the economic characteristics and risk of the embedded derivative are not closely related to the economic characteristics and risks of the host contract;

●

a separate instrument with the same terms as the embedded derivative would meet the definition of a derivate; and

●

the hybrid contract is not measured at fair value with changes in fair value recognized in profit or loss.

Foreign currencies

(i) Foreign currency transactions

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions.

(ii) Foreign operations

Revenue

(d) Revenue

(i)	Identify the contract

(ii) Identify performance obligations

(iii) Determine the transaction price

a.	Non-refundable upfront payments or license fees

b.	Milestone payments other than sales-based milestones

c.	Research and development service fees

d.	Sales based milestone payments and royalties

(iv) Allocate the transaction price

(v) Recognize revenue

Other income

(e) Other income

Government grants - WBSO

(f) Government grants — WBSO

Employee benefits

(g) Employee benefits

(i) Short-term employee benefits

(ii) Share-based payment transactions

(iii) Pension obligations

Taxation

(h) Taxation

(i) Current tax

(ii) Deferred tax

Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit.

Property, plant and equipment

(i) Property, plant and equipment

(i) Recognition and measurement

(ii) Depreciation

The estimated useful lives of property, plant and equipment for current and comparative periods are as follows:



● buildings and leasehold improvements:	5-10	years
● laboratory equipment:	5	years
● other:	3-5	years

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

Intangible assets

(j) Intangible assets

●

the technical feasibility of completing the intangible asset so that it will be available for use or sale;

●

the intention to complete the intangible asset and use or sell it;

●

the ability to use or sell the intangible asset;

●

how the intangible asset will generate probable future economic benefits;

●

the availability of adequate technical, financial and other resources to complete the development and to use

●

or sell the intangible asset; and

●

the ability to measure reliably the expenditure attributable to the intangible asset during its development.

Impairment of assets

(k) Impairment of assets

Financial assets

(l) Financial assets

Specifically:

●

all other debt investments and equity investments are measured subsequently at fair value through profit or loss (“FVTPL”).

Cash and cash equivalents

(m) Cash and cash equivalents

Financial liabilities and equity instruments

(n) Financial liabilities and equity instruments

Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangement.

Equity instruments

Compound financial instruments

Interest related to the financial liability is recognized in profit or loss.

Financial liabilities at fair value through profit or loss

Fair value is determined in the manner described in Note 5.

Other financial liabilities

Borrowings and other financial liabilities are classified as ‘non-current liabilities,’ other than liabilities with maturities up to one year, which are classified as “current liabilities”.

The Company derecognizes financial liabilities when the liability is discharged, cancelled or expired. For all financial liabilities, the fair value approximates its carrying amount.

Offsetting

Leases

(o) Leases

Lease payments included in the measurement of the lease liability comprise:

●

Fixed lease payments (including in-substance fixed payments), less any lease incentives receivable;

●

Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;

●

The amount expected to be payable by the Company under residual value guarantees;

●

The exercise price of purchase options, if the Company is reasonably certain to exercise the options; and

●

Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.

The Company remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:

●

The right-of-use asset is presented under Property, Plant and Equipment in the consolidated statement of financial position, in the category Buildings and leasehold improvements.

Non-current assets held for sale

(p) Non-current assets held for sale

Non-current assets (and disposal groups) classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell.

Other Current Liabilities

12 Months Ended

Dec. 31, 2023

Other current liabilities [Abstract]

Other current liabilities

16. Other Current Liabilities

At December 31, 2023, other current liabilities amount to € 8,509,000 (December 31, 2022: € 8,687,000). At December 31, 2023 and December 31, 2022, other current liabilities consisted principally of accruals for services provided by vendors not yet billed, payroll related accruals and other miscellaneous liabilities.

Other Taxes (Details) - EUR (€) € in Thousands	Dec. 31, 2023	Dec. 31, 2022
Other Taxes
Value added tax	€ 523	€ 607
Total Other Taxes	€ 523	€ 607

Financial Risk Management

12 Months Ended

Dec. 31, 2023

Financial Risk Management

Financial Risk Management

5. Financial Risk Management

5.1 Financial risk factors

The Company’s activities expose it to a variety of financial risks: market risk (including currency risk, interest rate risk and price risk), credit risk and liquidity risk. The Company’s overall financial risk management seeks to minimize potential adverse effects resulting from unpredictability of financial markets on the Company’s financial performance.

Financial risk management is carried out by the finance department. The finance department identifies and evaluates financial risks and proposes mitigating actions if deemed appropriate.

(a) Market risk

Market risk is the risk that changes in market prices – such as foreign exchange rates, interest rates and equity prices – will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

Foreign exchange risk

Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities in foreign currencies, primarily with respect to the U.S. dollar. The Company has an exposure associated with the time delay between entering into a contract, budget or forecast and the realization thereof. The Company operates a foreign exchange policy to manage the foreign exchange risk against the functional currency based on the Company’s cash balances and the projected future spend per major currency.

At year-end, a substantial amount of our cash balances are denominated in U.S. Dollars. This amount reflects our current expectation of future expenditure in U.S. dollars.

At December 31, 2023 our net position of financial instruments denominated in U.S. dollars was a net liability of € 726,000 (2022: net asset of € 78,630,000). Foreign currency denominated receivables and trade payables are short term in nature (generally 30 to 45 days). As a result, the foreign exchange results recognized in 2023 and 2022 are mainly caused by the cash balance denominated in U.S. dollars.

A reasonably possible weakening of the U.S. dollar by 10% against the functional currency of the Company at December 31, 2023 would have decreased our net loss by € 73,000 (2022: increased by € 7,863,000). A 10% strengthening of the U.S. dollar against the functional currency of the Company would have an equal but opposite effect on our net loss. The analysis assumes that all other variables, in particular interest rates, remain constant.

Price risk

The market prices for the production of preclinical materials and services as well as external contracted research may vary over time. Currently, the commercial prices of any of the Company’s future product candidates is uncertain. When product candidates approach the regulatory approval date or potential regulatory approval date, the uncertainty of potential sales prices decreases. The Company is not exposed to commodity price risk.

Furthermore, the Company does not hold investments designated for sale and is therefore not exposed to equity securities price risk.

Cash flow and fair value interest rate risk

The Company’s interest rate risk arises from current accounts and deposits and the sensitivity analysis below has been determined based on the exposure to interest rates on these short-term maturity primary financial instruments.

A 10 percent increase or decrease on actual interest rate is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

As of December 31, 2023, if interest rates had been 10 percent higher, then pre-tax earnings for the year would have been € 259,000 higher, while if interest rates had been 10 percent lower, then pre-tax earnings for the year would have been € 259,000 lower.

The Company’s exposure to interest rate risks on loans and leases is limited due to the use of fixed interest rates. The Company has a loan with a fixed interest rate, totaling € 4,292,000 at December 31, 2023 (2022: several loans with fixed interest rates totaling € 6,771,000). Details on the interest rates and maturities of these loans are provided in Note 14.

(b) Credit risk

Credit risk represents the risk of financial loss caused by default of the counterparty. The Company has no large receivables balances with external parties outside of cash and cash equivalents. Our cash management policy is focused on preserving capital, providing liquidity for operations and optimizing yield while accepting limited risk (Short-term credit ratings must be rated A-1/P-1/F1 at a minimum by at least one of the Nationally Recognized Statistical Rating Organizations (“NRSROs”) specifically Moody’s, Standard & Poor’s or Fitch. Long-term credit rating must be rated A2 or A at a minimum by at least one NRSRO). As of December 31, 2023, the Company is in compliance with its cash management policy.

At December 31, 2023 and December 31, 2022, all of our cash and cash equivalents were held at four large institutions, Rabobank, ABN Amro, BNP Paribas and Wells Fargo. All institutions are highly rated (Moody’s long-term debt ratings of Aa2, Aa3, Aa2 and Aa2 for Rabobank, ABN Amro, BNP Paribas and Wells Fargo respectively) with sufficient capital adequacy and liquidity metrics.

There are no financial assets past due date or impaired. No credit limits were exceeded during the reporting period.

Liquidity risk represents the risk that an entity will encounter difficulty in meeting obligations associated with its financial liabilities. Prudent liquidity risk management implies ensuring sufficient availability of cash resources for funding of operations and planning to raise cash if and when needed, either through issue of shares or through credit facilities. Management monitors rolling forecasts of the Company’s liquidity reserve on the basis of expected cash flow.

The table below analyzes ProQR’s undiscounted liabilities into relevant maturity groupings based on the remaining period at year-end until the contractual maturity date:


	Less than	Between 1	Between 2
	1 year	and 2 years	and 5 years	Over 5 years

	(€ in thousands)
At December 31, 2023
Borrowings	—	4,583	—	—
Lease liabilities	2,288	2,496	7,487	6,240
Trade payables and other payables	11,709	—	—	—
Total	13,997	7,079	7,487	6,240

At December 31, 2022
Borrowings	2,500	2,455	2,644	—
Lease liabilities	2,053	2,212	6,637	7,743
Trade payables and other payables	10,197	—	—	—
Total	14,750	4,667	9,281	7,743

Our future capital requirements and the period for which our existing resources will support our operations may vary significantly from what we expect. Our monthly spending levels will vary based on new and ongoing development and corporate activities. Because the length of time and activities associated with successful development of our product candidates is highly uncertain, we are unable to estimate the actual funds we will require for development of our product candidates.

5.2 Capital risk management

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to provide returns for shareholders, benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders (although at this time the Company does not have retained earnings and is therefore currently unable to pay dividends), return capital to shareholders, issue new shares or sell assets to reduce debt.

The total amount of equity as recorded on the balance sheet is managed as capital by the Company.

5.3 Fair value measurement

For financial instruments that are measured on the balance sheet at fair value, IFRS 13 requires disclosure of fair value measurements by level of the following fair value measurement hierarchy:

●

quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1);

●

inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2); and

●

inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).

Fair value of financial assets and liabilities that are measured at fair value on a recurring basis

Some of the Company’s financial assets and liabilities are measured at fair value at the end of each reporting period. The following table gives information about how the fair values of these financial assets and liabilities are determined (in particular, the valuation technique and inputs used).


			Relationship and
			sensitivity of
	Valuation technique	Significant unobservable	Significant unobservable
Financial liabilities	and key inputs	inputs	inputs to fair value

Investment in Phoenicis Therapeutics, Inc	Market comparison technique: The valuation model is based on market multiples derived from quoted prices of companies comparable to the investee, adjusted for the effect of the non-marketability of the equity securities, and the result of the investee. The estimate is adjusted for the net debt of the investee.	Adjusted market-multiple	The estimated fair value would increase (decrease) if the adjusted market-multiple were higher (lower).

Investment in Yarrow Biotechnology, Inc.	Market comparison technique: The valuation model is based on market multiples derived from quoted prices of companies comparable to the investee, adjusted for the effect of the non-marketability of the equity securities, and the result of the investee. The estimate is adjusted for the net debt of the investee.	Adjusted market-multiple	The estimated fair value would increase (decrease) if the adjusted market-multiple were higher (lower).

Warrants and conversion options	Black-Scholes model. The following variables were taken into consideration: current underlying price of the Company's shares, options strike price, expected life, historical volatility of ProQR share returns over a period equal to the expected life, risk-free rate: based on the US Treasury yield curve rates per the valuation date (interpolated) for the expected life.	Not applicable	Not applicable

The investments in Phoenicis Therapeutics, Inc and Yarrow Biotechnology, Inc are measured using valuation methods based on so-called Level 3 inputs. Level 3 inputs are unobservable inputs. Changing one or more of the unobservable inputs to reflect reasonably possible alternative assumptions would not significantly change the fair value determined for Phoenicis Therapeutics, Inc and Yarrow Biotechnology, Inc.

Warrants are measured using valuation methods based on so-called Level 2 inputs. Level 2 inputs are inputs other than quoted prices that are observable for the liability, either directly or indirectly.

The carrying amount of all financial assets and financial liabilities is a reasonable approximation of the fair value and therefore information about the fair values of each class has not been disclosed.

Share options and restricted stock units (“RSUs”) granted to employees and consultants are measured at the fair value of the equity instruments granted. The fair value of options is determined through the use of an option-pricing model considering, among others, the following variables:

●

the exercise price of the option;

●

the expected life of the option;

●

the current value of the underlying shares;

●

the expected volatility of the share price;

●

the dividends expected on the shares; and

●

the risk-free interest rate for the life of the option.

Other Current Liabilties (Details) - EUR (€) € in Thousands	Dec. 31, 2023	Dec. 31, 2022
Other current liabilities [Abstract]
Other current liabilities	€ 8,509	€ 8,687

Property, Plant and Equipment (Details) - EUR (€)	12 Months Ended
Property, Plant and Equipment (Details) - EUR (€)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment
Carrying amount at beginning of period	€ 16,240,000	€ 17,467,000
Additions	1,371,000	708,000
Depreciation	(2,513,000)	(2,521,000)
Recognition of right-of-use asset	1,863,000	592,000	€ 536,000
Effect of lease modification	1,859,000	592,000
Disposals		(6,000)
Disposals - cost	(252,000)
Accumulated depreciation on disposals	192,000
Movement for the period	657,000	(1,227,000)
Carrying amount at end of period	16,897,000	16,240,000	17,467,000
Research and development costs
Property, Plant and Equipment
Depreciation	(1,994,000)	(2,088,000)
General and administrative costs
Property, Plant and Equipment
Depreciation	(519,000)	(433,000)
Buildings and Leasehold improvements
Property, Plant and Equipment
Carrying amount at beginning of period	14,794,000	16,014,000
Additions	30,000	62,000
Depreciation	(1,951,000)	(1,852,000)
Effect of lease modification	1,859,000	592,000
Transfers	23,000	(22,000)
Movement for the period	(39,000)	(1,220,000)
Carrying amount at end of period	14,755,000	14,794,000	16,014,000
Right-of-use assets	14,524,000	14,484,000
Laboratory equipment
Property, Plant and Equipment
Carrying amount at beginning of period	1,439,000	1,432,000
Additions	1,278,000	643,000
Depreciation	(546,000)	(660,000)
Transfers	(30,000)	30,000
Disposals		(6,000)
Disposals - cost	(252,000)
Accumulated depreciation on disposals	192,000
Movement for the period	642,000	7,000
Carrying amount at end of period	2,081,000	1,439,000	1,432,000
Other
Property, Plant and Equipment
Carrying amount at beginning of period	7,000	21,000
Additions	63,000	3,000
Depreciation	(16,000)	(9,000)
Transfers	7,000	(8,000)
Movement for the period	54,000	(14,000)
Carrying amount at end of period	61,000	7,000	21,000
Cost
Property, Plant and Equipment
Carrying amount at beginning of period	29,114,000	27,820,000
Carrying amount at end of period	32,092,000	29,114,000	27,820,000
Cost \| Buildings and Leasehold improvements
Property, Plant and Equipment
Carrying amount at beginning of period	22,863,000	22,231,000
Carrying amount at end of period	24,775,000	22,863,000	22,231,000
Cost \| Laboratory equipment
Property, Plant and Equipment
Carrying amount at beginning of period	4,912,000	4,245,000
Carrying amount at end of period	5,908,000	4,912,000	4,245,000
Cost \| Other
Property, Plant and Equipment
Carrying amount at beginning of period	1,339,000	1,344,000
Carrying amount at end of period	1,409,000	1,339,000	1,344,000
Accumulated depreciation
Property, Plant and Equipment
Carrying amount at beginning of period	(12,874,000)	(10,353,000)
Carrying amount at end of period	(15,195,000)	(12,874,000)	(10,353,000)
Accumulated depreciation \| Buildings and Leasehold improvements
Property, Plant and Equipment
Carrying amount at beginning of period	(8,069,000)	(6,217,000)
Carrying amount at end of period	(10,020,000)	(8,069,000)	(6,217,000)
Accumulated depreciation \| Laboratory equipment
Property, Plant and Equipment
Carrying amount at beginning of period	(3,473,000)	(2,813,000)
Carrying amount at end of period	(3,827,000)	(3,473,000)	(2,813,000)
Accumulated depreciation \| Other
Property, Plant and Equipment
Carrying amount at beginning of period	(1,332,000)	(1,323,000)
Carrying amount at end of period	€ (1,348,000)	€ (1,332,000)	€ (1,323,000)

Borrowings

12 Months Ended

Dec. 31, 2023

Borrowings

Borrowings

14. Borrowings


	December 31,	December 31,
	2023	2022

	(€ in thousands)
Innovation credit	2,899	3,907
Accrued interest on innovation credit	1,393	1,035
Convertible loans	—	1,369
Accrued interest on convertible loans	—	460
Total borrowings	4,292	6,771
Current portion	—	(2,500)
Total non-current borrowings	4,292	4,271

Innovation credit (“Innovatiekrediet”)

On December 10, 2018 ProQR was awarded an Innovation credit for the sepofarsen program. Amounts were drawn under this facility from 2018 through 2022. The credit of € 3,907,000 was used to conduct the Phase 2/3 clinical study and efforts to obtain regulatory and ethical market approval (New Drug Applications (“NDA”)/ Marketing Authorization Applications (“MAA”)) of sepofarsen for LCA10. In the fourth quarter of 2023, ProQR made a partial repayment of the principal, amounting to € 1,008,000. The remaining amount payable of € 2,899,000 is recognized under non-current borrowings at December 31, 2023.

In December 2023, ProQR received a conditional waiver of the € 4,292,000 remaining balance of the Innovation credit including accrued interest. Consequently, the repayment of the total loan of € 4,292,000, including interest, will be waived if conditions are met, which will be reviewed annually.

The amounts receivable relating to development & regulatory milestone payments under the Amended and Restated Asset Purchase Agreement with Laboratoires Théa S.A.S. (“Théa”) are subject to a right of pledge for the benefit of the Rijksdienst voor Ondernemend Nederland (“RVO”).

Convertible loans: Pontifax and Kreos

In July 2020, the Company entered into a convertible debt financing agreement with Pontifax Medison Debt Financing. Under the agreement, the Company had access to up to $ 30 million in convertible debt financing in three tranches of $ 10 million each that would mature over a 54-month period and had an interest-only period of 24 months. One tranche of $ 10 million (€ 8.4 million) was drawn down over the course of the agreement.

A second close of the convertible debt financing agreement was completed in August 2020 with Kreos Capital. Under the second agreement, the Company had access to up to € 15 million in convertible debt financing in three tranches of € 5 million each that would mature over a 54-month period and had an interest-only period of 24 months. One tranche of € 5 million was drawn down over the course of the agreement.

In connection with the loan agreement, the Company issued to Pontifax and Kreos warrants to purchase up to an aggregate of 302,676 shares of its common stock at a fixed exercise price.

On December 29, 2021, the Company amended its convertible debt financing agreement with the Lenders. Under the amended agreement the Company drew down an additional $ 30 million (€ 26.5 million) that would mature over a 54-month period and had an interest-only period of 33 months. The amendment replaced the two undrawn tranches under the original convertible debt financing agreements.

In connection with the amended loan agreement, the Company issued to the Lenders warrants to purchase up to an aggregate of 376,952 shares of its common stock at a fixed exercise price.

The convertible loans from Pontifax and Kreos bore an interest of 8.2% per annum.

In September 2022, ProQR extinguished its debt with Pontifax and Kreos by repaying all outstanding principal amounts. In addition, an early repayment penalty was incurred. The financial liability relating to Pontifax’ conversion options was derecognized from derivative financial instruments. The option premium on convertible loans relating to Kreos’ conversion options was derecognized from equity. The results related to the derecognition of these financial liabilities are disclosed in the table further below in this note.

Pontifax’ and Kreos’ warrants remain in place until their five-year economic life expires. These warrants are accounted for as embedded derivatives and were recognized separately from the host contract as derivative financial liabilities at fair value through profit or loss.

Convertible loans: Amylon

Convertible loans amounting to € 2.3 million were issued to Amylon Therapeutics B.V. in 2018 and 2019 and were interest-bearing at an average rate of 8% per annum. In 2022 and 2023, Amylon entered into waiver agreements with its lenders. Such lenders’ loan agreements with Amylon are severed and any claims to repayment of any outstanding debt and accumulated interest are renounced. The total amount of convertible loans and accumulated interest waived under these agreements in 2023 is € 1,866,000 (2022: € 1,144,000). The resulting gains are recognized as a gain on derecognition of financial liabilities.

In the third quarter of 2023, Amylon was legally dissolved. The effect of the resulting derecognition of Amylon’s remaining assets and liabilities is included in profit and loss as ‘result on derecognition of subsidiary’.

The results related to the derecognition of financial liabilities, as described above, are as follows:


	2023	2022

	(€ in thousands)
Gain on waiver of Amylon convertible loans	1,866	1,144
Loss on extinguishment of Pontifax and Kreos convertible loans	-	(2,534)
	1,866	(1,390)

Reconciliation of movements of liabilities to cash flows arising from financing activities


	Innovation	Convertible	Lease
	credit	loans	liability

	(€ in thousands)
Balance at January 1, 2022	4,552	39,538	16,282
Changes from financing cash flows
Repayment of convertible loans	—	(43,372)	—
Repayment of lease liability	—	—	(1,674)
The effect of changes in foreign exchange rates	—	1,771	—
Other changes
Interest expense	391	3,537	—
Interest paid	—	(2,612)	—
Transaction costs	—	94	—
Repayments allocated to option premium on convertible loans (equity)	—	1,482	—
Repayments recognized as result on derecognition of financial liabilities	—	2,534	—
Effect of waived loan agreements	—	(1,144)	—
Effect of lease amendments	—	—	592

Balance at January 1, 2023	4,943	1,828	15,200
Changes from financing cash flows
Repayments	(1,008)	—	(1,621)
The effect of changes in foreign exchange rates	—	—	—
Other changes
Interest expense	357	38	—
Interest paid	—	—	—
Effect of waived loan agreements	—	(1,866)	—
Effect of lease amendments	—	—	1,863

Balance at December 31, 2023	4,292	—	15,442

Operating Costs

12 Months Ended

Dec. 31, 2023

Operating costs

Operating costs

19. Operating Costs

Total operating costs include the following expenses by nature:


	2023	2022	2021

	(€ in thousands)
Employee benefits	20,349	30,286	26,320
External R&D costs	4,809	19,824	15,580
Laboratory costs and other consumables	3,473	3,111	2,709
Advisory and legal costs	4,262	6,766	4,674
Insurance costs	1,458	1,895	1,979
Depreciation	2,513	2,521	2,329
Patent and license expenses	303	611	428
Other	4,217	4,504	5,569
	41,384	69,518	59,588

Reclassifications

Certain prior year amounts have been reclassified to conform to current year presentation.

Revenue (Tables)

12 Months Ended

Dec. 31, 2023

Revenue.

Schedule of collaboration revenue


	2023	2022	2021

	(€ in thousands)
Up-front payments
Eli Lilly	5,996	2,646	564
Yarrow	—	191	252
Other R&D services
Eli Lilly	—	270	—
Yarrow	—	118	282
Equity consideration
Eli Lilly	518	321	69
Yarrow	—	48	168
	6,514	3,594	1,335

Summary of revenue recognized


	Eli Lilly	Yarrow

	(€ in thousands)
Balance at January 1, 2022	18,262	73
Received or receivable
Upfront payment	56,412	—
Other R&D services	273	256
Equity consideration	(451)	—
Revenue recognition
Upfront payment	(2,646)	(191)
Other R&D services	(270)	(118)
Equity consideration	(321)	(48)
Foreign currency translation effects	(50)	28
Balance at January 1, 2023	71,209	—
Received or receivable
Upfront payment	—	—
Equity consideration	—	—
Revenue recognition
Upfront payment	(5,996)	—
Equity consideration	(518)	—
Foreign currency translation effects	44	—
Balance at December 31, 2023	64,739	—

Financial Risk Management - Undiscounted Liabilities by Maturity (Details) - EUR (€) € in Thousands	Dec. 31, 2023	Dec. 31, 2022
Less than 1 year
Disclosure of detailed information about borrowings [line items]
Undiscounted financial liabilities	€ 13,997	€ 14,750
Between 1 and 2 years
Disclosure of detailed information about borrowings [line items]
Undiscounted financial liabilities	7,079	4,667
Between 2 and 5 years
Disclosure of detailed information about borrowings [line items]
Undiscounted financial liabilities	7,487	9,281
Over 5 years
Disclosure of detailed information about borrowings [line items]
Undiscounted financial liabilities	6,240	7,743
Borrowings \| Less than 1 year
Disclosure of detailed information about borrowings [line items]
Undiscounted financial liabilities		2,500
Borrowings \| Between 1 and 2 years
Disclosure of detailed information about borrowings [line items]
Undiscounted financial liabilities	4,583	2,455
Borrowings \| Between 2 and 5 years
Disclosure of detailed information about borrowings [line items]
Undiscounted financial liabilities		2,644
Lease liabilities \| Less than 1 year
Disclosure of detailed information about borrowings [line items]
Undiscounted financial liabilities	2,288	2,053
Lease liabilities \| Between 1 and 2 years
Disclosure of detailed information about borrowings [line items]
Undiscounted financial liabilities	2,496	2,212
Lease liabilities \| Between 2 and 5 years
Disclosure of detailed information about borrowings [line items]
Undiscounted financial liabilities	7,487	6,637
Lease liabilities \| Over 5 years
Disclosure of detailed information about borrowings [line items]
Undiscounted financial liabilities	6,240	7,743
Trade payables and other payables \| Less than 1 year
Disclosure of detailed information about borrowings [line items]
Undiscounted financial liabilities	€ 11,709	€ 10,197

Prepayments and Other Receivables

12 Months Ended

Dec. 31, 2023

Prepayments and Other Receivables.

Prepayments and Other Receivables

11. Prepayments and Other Receivables


	December 31,	December 31,
	2023	2022

	(€ in thousands)
Prepayments	793	2,449
Eli Lilly up-front receivable	—	56,254
Other receivables	745	375
	1,538	59,078

All receivables are considered short-term and due within one year. At December 31, 2023 and 2022, prepayments consisted principally of payments made by the Company for services not yet provided by vendors. At December 31, 2023 and 2022, other receivables consisted principally of deposits. Note 17 Revenue describes the transaction related to the Eli Lilly up-front receivable.

Borrowings - Derecognition of financial liabilities (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Borrowings
Gain on waiver of Amylon convertible loans	€ 1,866	€ 1,144
Loss on extinguishment of Pontifax and Kreos convertible loans		(2,534)
Total results related to derecognition of financial liabilities	€ 1,866	€ (1,390)

General Information - Revision of comparative figures (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Equity attributable to owners of the Company	€ 41,390	€ 67,065
Deferred income	64,739	71,209
Revenue	6,514	3,594	€ 1,335
Financial income	2,593	4,863	1,516
Result for the year	(27,735)	(64,204)	(60,799)
Equity	41,390	66,681	114,110	€ 56,546
Changes in working capital	(48,956)	4,991	(25,014)
Accumulated Deficit
Result for the year	(28,119)	(64,424)	(60,740)
Equity	€ (400,850)	(379,109)	(316,889)	€ (257,747)
Increase (decrease) due to corrections of prior period errors
Equity attributable to owners of the Company		1,568
Deferred income		1,568
Revenue		(443)	(19)
Financial income		1,130	900
Result for the year		687	881
Changes in working capital		(443)	(19)
Increase (decrease) due to corrections of prior period errors \| United States of America, Dollars
Assets (liabilities)		€ 72,777
Increase (decrease) due to corrections of prior period errors \| Accumulated Deficit
Equity			€ 881

Prepayments and Other Receivables (Details) - EUR (€) € in Thousands	Dec. 31, 2023	Dec. 31, 2022
Prepayments and Other Receivables.
Prepayments	€ 793	€ 2,449
Eli Lilly up-front receivable		56,254
Other receivables.	745	375
Total Prepayments and Other Receivables	€ 1,538	€ 59,078

Deferred Income - Summary of deferred income (Details) - EUR (€)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of disaggregation of revenue from contracts with customers [line items]
Total deferred income	€ 64,739,000	€ 71,209,000
Current portion	(20,569,000)	(5,641,000)
Total non-current deferred income	44,170,000	65,568,000
Eli Lilly and Company
Disclosure of disaggregation of revenue from contracts with customers [line items]
Total deferred income	64,739,000	71,209,000	€ 18,262,000
Eli Lilly and Company \| Up-front payments and premium
Disclosure of disaggregation of revenue from contracts with customers [line items]
Total deferred income	€ 64,739,000	€ 71,209,000
Yarrow Biotechnology, Inc
Disclosure of disaggregation of revenue from contracts with customers [line items]
Total deferred income			€ 73,000

Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2023

Significant Accounting Policies

Estimated useful lives of property, plant and equipment



● buildings and leasehold improvements:	5-10	years
● laboratory equipment:	5	years
● other:	3-5	years

Auditor fees (Tables)

12 Months Ended

Dec. 31, 2023

Auditor fees

Schedule of auditors remuneration for services provided


	2023	2022	2021

	(€ in thousands)
Audit fees	588	512	419
Audit-related fees	—	32	64
	588	544	483

Other income

12 Months Ended

Dec. 31, 2023

Other income

Other income

18. Other Income


	2023	2022	2021

	(€ in thousands)
Net gain on divestment of intellectual property	2,931	—	—
Grant income	75	699	1,012
Other income	5	66	31
	3,011	765	1,043

In 2023, ProQR completed the divestment of its late-stage ophthalmic intellectual property assets, sepofarsen and ultevursen, to Théa. Under the terms of the agreement, ProQR received an initial payment of € 8,000,000. The Company incurred costs directly associated to the transaction amounting to € 5,069,000. The net gain on the divestment amounting to € 2,931,000 was recognized in other income. Costs directly associated to the transaction include the partial repayment of grant income received from Foundation Fighting Blindness (“FFB”) for the development of ultevursen (€ 1,117,000), financial advisory fees (€ 2,715,000), incentive payments (€ 913,000), assignment and success fees (€ 260,000), and other costs (€ 64,000).

On February 9, 2018, the Company entered into a partnership agreement with FFB, under which FFB agreed to provide funding of $ 7,500,000 for the preclinical and clinical development of ultevursen for Usher syndrome type 2A targeting mutations in exon 13. FFB grant income amounted to € nil in 2023 compared to € 594,000 in 2022 and € 977,000 in 2021. Grant income in 2023, 2022 and 2021 further includes income from grants received from various institutions.

Income Taxes (Details) - EUR (€) € in Thousands	12 Months Ended			24 Months Ended
Income Taxes (Details) - EUR (€) € in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2023
Income Taxes
Result before corporate income taxes	€ (27,813)	€ (64,108)	€ (60,682)
Exclude: results related to associates		(8)	(217)
Accounting profit	(27,813)	(64,100)	(60,465)
Income tax based on domestic rate (2023 and 2022: 25.8%, 2021: 25%)	7,176	16,538	15,116
Different tax rates in foreign jurisdictions	(8)	10	18
Non-deductible expenses / non-taxable gains	(289)	133	(2,176)
Share- and loan-issue expenditures that are taxable			1,423
Change in unrecognized deductible temporary differences	(67)	(75)	(89)
Current year losses for which no deferred tax asset was recognized	(6,820)	(16,649)	(14,385)
True-up for prior year	86	(53)	(24)
Income tax charge	78	(96)	€ (117)
Domestic rate			25.00%	25.80%
Tax loss carry-forwards	€ 402,300	€ 376,900	€ 312,600	€ 402,300

Consolidated Statement of Profit or Loss and Comprehensive Income - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Consolidated Statement of Profit or Loss and Comprehensive Income
Revenue	€ 6,514	€ 3,594	€ 1,335
Other income	3,011	765	1,043
Research and development costs	(25,148)	(50,867)	(42,220)
General and administrative costs	(16,236)	(18,651)	(17,368)
Total operating costs	(41,384)	(69,518)	(59,588)
Operating result	(31,859)	(65,159)	(57,210)
Financial income	2,593	4,863	1,516
Financial expense	(1,458)	(5,127)	(3,405)
Results related to associates		(8)	(217)
Gain on disposal of associate			514
Gain on disposal of subsidiary	92
Results related to derecognition of financial liabilities	1,866	(1,390)
Results related to financial liabilities measured at FVTPL	953	2,713	(1,880)
Result before corporate income taxes	(27,813)	(64,108)	(60,682)
Corporate income taxes	78	(96)	(117)
Result for the year	(27,735)	(64,204)	(60,799)
Items that will never be reclassified to profit or loss
Fair value loss on investment in financial asset designated as at FVTOCI	(621)
Items that are or may be reclassified to profit or loss
Foreign operations - foreign currency translation differences	(395)	782	619
Total comprehensive loss	(28,751)	(63,422)	(60,180)
Result attributable to
Owners of the Company	(28,119)	(64,424)	(60,740)
Non-controlling interests	384	220	(59)
Result for the year	(27,735)	(64,204)	(60,799)
Total comprehensive loss attributable to
Owners of the Company	(29,135)	(63,642)	(60,121)
Non-controlling interests	384	220	(59)
Total comprehensive loss	€ (28,751)	€ (63,422)	€ (60,180)
Share information
Weighted average number of shares outstanding	81,011,438	71,641,305	64,182,492
Earnings per share for result attributable to the equity holders of the Company (expressed in Euro per share)
Basic loss per share	€ (0.35)	€ (0.90)	€ (0.95)
Diluted loss per share	€ (0.35)	€ (0.90)	€ (0.95)

Document and Entity Information	12 Months Ended
Document and Entity Information	Dec. 31, 2023 shares
IFRS Statement Line items
Document Type	20-F
Document Registration Statement	false
Document Annual Report	true
Document Period End Date	Dec. 31, 2023
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Document Shell Company Report	false
Entity File Number	001-36622
Entity Registrant Name	ProQR Therapeutics N.V.
Entity Incorporation, State or Country Code	P7
Entity Address, Address Line One	Zernikedreef 9
Entity Address, City or Town	Leiden
Entity Address, Postal Zip Code	2333 CK
Entity Address, Country	NL
Title of 12(b) Security	Ordinary Shares, nominal value € 0.04 per share
Trading Symbol	PRQR
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding	81,354,592
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Document Accounting Standard	International Financial Reporting Standards
Entity Shell Company	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Entity Central Index Key	0001612940
Amendment Flag	false
Auditor Firm ID	1012
Auditor Name	KPMG Accountants N.V.
Auditor Location	Amstelveen, the Netherlands
Document Financial Statement Error Correction [Flag]	true
Document Financial Statement Restatement Recovery Analysis [Flag]	false
Business Contact [Member]
IFRS Statement Line items
Entity Address, Address Line One	Zernikedreef 9
Entity Address, City or Town	Leiden
Entity Address, Postal Zip Code	2333 CK
City Area Code	+31
Local Phone Number	88 166 7000
Contact Personnel Name	Jurriaan Dekkers
Entity Address, Country	NL
Contact Personnel Email Address	jdekkers@proqr.com

Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment.

Property, plant and equipment


	Buildings and
	leasehold	Laboratory
	improvements	equipment	Other	Total
	(€ in thousands)	(€ in thousands)	(€ in thousands)	(€ in thousands)
Balance at January 1, 2022
Cost	22,231	4,245	1,344	27,820
Accumulated depreciation	(6,217)	(2,813)	(1,323)	(10,353)
Carrying amount	16,014	1,432	21	17,467

Additions	62	643	3	708
Depreciation	(1,852)	(660)	(9)	(2,521)
Effect of lease modification (Note 25)	592	—	—	592
Transfers	(22)	30	(8)	—
Disposals	—	(6)	—	(6)
Movement for the period	(1,220)	7	(14)	(1,227)

Balance at December 31, 2022
Cost	22,863	4,912	1,339	29,114
Accumulated depreciation	(8,069)	(3,473)	(1,332)	(12,874)
Carrying amount	14,794	1,439	7	16,240

Balance at January 1, 2023
Cost	22,863	4,912	1,339	29,114
Accumulated depreciation	(8,069)	(3,473)	(1,332)	(12,874)
Carrying amount	14,794	1,439	7	16,240

Additions	30	1,278	63	1,371
Depreciation	(1,951)	(546)	(16)	(2,513)
Effect of lease modification (Note 25)	1,859	—	—	1,859
Transfer	23	(30)	7	—
Disposals - cost	—	(252)	—	(252)
Accumulated depreciation on disposals	—	192	—	192
Movement for the period	(39)	642	54	657

Balance at December 31, 2023
Cost	24,775	5,908	1,409	32,092
Accumulated depreciation	(10,020)	(3,827)	(1,348)	(15,195)
Carrying amount	14,755	2,081	61	16,897

Revenue (Details)	1 Months Ended									12 Months Ended
Revenue (Details)	Feb. 28, 2023 EUR (€)	Feb. 28, 2023 USD ($)	Dec. 31, 2022 EUR (€) shares	Dec. 31, 2022 USD ($) shares	Oct. 31, 2021 EUR (€)	Oct. 31, 2021 USD ($)	Sep. 30, 2021 EUR (€) shares	Sep. 30, 2021 USD ($) shares	May 31, 2021 EUR (€)	Dec. 31, 2022 EUR (€)	Dec. 31, 2021 EUR (€)	Dec. 31, 2023 EUR (€)	Sep. 30, 2021 USD ($)
Disclosure of disaggregation of revenue from contracts with customers [line items]
Deferred income			€ 71,209,000							€ 71,209,000		€ 64,739,000
Proceeds from issuing shares										14,122,000	€ 108,477,000
Eli Lilly and Company
Disclosure of disaggregation of revenue from contracts with customers [line items]
Deferred income			€ 71,209,000							€ 71,209,000	18,262,000	€ 64,739,000
Issue of ordinary shares (in shares) \| shares			9,381,586	9,381,586			3,989,976	3,989,976
Proceeds from issuing shares							€ 25,270,000	$ 30,000,000
Gross proceeds from issuance of shares			€ 14,122,000	$ 15,000,000			€ 25,270,000
Discount on shares issued			€ 451,000	$ 480,000
Up-front payment received	€ 56,412,000	$ 60,000,000			€ 16,849,000	$ 20,000,000
Additional consideration to be received if counterparty exercises option to expand partnership \| $		$ 50,000,000
Number of performance obligations in collaboration agreement			1	1			1	1
Eli Lilly and Company \| Equity consideration
Disclosure of disaggregation of revenue from contracts with customers [line items]
Deferred income							€ 2,047,000						$ 2,429,000
Yarrow Biotechnology, Inc
Disclosure of disaggregation of revenue from contracts with customers [line items]
Deferred income											73,000
Up-front payment received									€ 419,000
Reimbursements received, R&D activities											€ 178,000
Number of performance obligations in collaboration agreement									1
Yarrow Biotechnology, Inc
Disclosure of disaggregation of revenue from contracts with customers [line items]
Proportion of ownership interest in associate									8.00%	5.10%

Investments in Associates

12 Months Ended

Dec. 31, 2023

Investments in Associates

Investments in Associates

8. Investments in Associates

In May 2021, the Company obtained an 8% share in the common stock of Yarrow Biotechnology, Inc. (“Yarrow”). ProQR’s share in Yarrow subsequently changed to 5.1%. Although ProQR only owns 5.1% of Yarrow’s shares, the Company had significant influence over Yarrow by virtue of its right to appoint one of Yarrow’s three board members, as well as its participation in Yarrow’s policy-making process, amongst other factors. As such, our interest in Yarrow was initially recognized as an investment in associate.

In October 2023, Gerard Platenburg, Chief Scientific Officer at ProQR, ended his term on Yarrow’s board of directors. From that moment onwards, ProQR no longer had significant influence over Yarrow. Yarrow was therefore derecognized as an associate and was accounted for as a financial asset, as disclosed in Note 9.

As the carrying amount of our investment in Yarrow was € nil at December 31, 2022, ProQR did not recognize any further share of Yarrow’s loss from continuing operations for the period from January through October 2023. The results related to associates amounting to € 8,000 for 2022 consisted of ProQR's share in the loss of Yarrow.


		Investment
		in associate
		(€ in thousands)

Balance at January 1, 2022		8

Share of loss from continuing operations		(8)

Balance at December 31, 2022		—

Derecognition of investment in associate (Yarrow Biotechnology, Inc.)		—

Balance at December 31, 2023		—

Leases (Tables)

12 Months Ended

Dec. 31, 2023

Leases

Schedule of relevant disclosures in relation to leases


	2023	2022	2021
	(€ in thousands)	(€ in thousands)	(€ in thousands)
Depreciation charge for right-of-use assets	1,833	1,737	1,672
Interest expense on lease liabilities	774	793	835
Expense relating to short-term leases	28	94	70
Total cash outflow for leases	2,423	2,701	1,657
Additions to right-of-use assets during the period	1,863	592	536

Income Taxes

12 Months Ended

Dec. 31, 2023

Income Taxes

Income Taxes

23. Income Taxes

The calculation of the tax charge is as follows:


	2023		2022		2021

	(€ in thousands)
Consolidated result before corporate income taxes	(27,813)		(64,108)		(60,682)
Exclude: results related to associates	—		(8)		(217)
	(27,813)		(64,100)		(60,465)

Income tax based on domestic rate (2023 and 2022: 25.8%, 2021: 25%)	7,176		16,538		15,116
Tax effect of:
Different tax rates in foreign jurisdictions	(8)		10		18
Non-deductible expenses / non-taxable gains	(289)		133		(2,176)
Share- and loan-issue expenditures that are taxable	—		—		1,423
Change in unrecognized deductible temporary differences	(67)		(75)		(89)
Current year losses for which no deferred tax asset was recognized	(6,820)		(16,649)		(14,385)
True-up for prior year	86		(53)		(24)
Income tax benefit / (charge)	78		(96)		(117)
Effective tax rate	—	%	—	%	—	%

The Company recognizes deferred tax assets arising from unused tax losses, deductible temporary differences or tax credits only to the extent that the Company has sufficient taxable temporary differences or there is convincing evidence that sufficient taxable profit will be available against which the unused tax losses or unused tax credits can be utilized. Management’s judgment is that such convincing evidence is currently not sufficiently available and a deferred tax asset is therefore only recognized to the extent that the Company has sufficient taxable temporary differences. Consequently, the Company has not recognized a deferred tax asset related to operating losses.

A deferred tax liability amounting to € 3,747,000 (2022: € 3,737,000) arises due to a taxable temporary difference associated with the Company’s right-of-use asset for the lease of its Leiden headquarters. A deferred tax asset amounting to € 3,984,000 (2022: € 3,922,000) arises due to a deductible temporary difference associated with the corresponding lease liability. As these deferred tax positions relate to income taxes levied by the same taxation authority (namely that of the Netherlands), and there is a legally enforceable right to offset current tax assets against current tax liabilities, and the Company intends to settle its current tax assets and liabilities on a net basis, the deferred tax asset associated with the lease liability is offset against the deferred tax liability associated with the right-of-use asset. The remaining balance of the deferred tax asset is not recognized, as it is Management’s judgment that there is no sufficient convincing evidence that sufficient taxable profit will be available against which the unused tax losses or unused tax credits can be utilized.

As per December 31, 2023, the Company has a total amount of € 402.3 million (2022: € 376.9 million, 2021: € 312.6 million) tax loss carry-forwards available for offset against future taxable profits, which may be carried forward indefinitely. However, the offset of losses will be limited in a given year against the first € 1 million of taxable profit. For taxable profit in excess of this amount, losses may only be offset up to 50% of this excess.

Revenue - Summary of revenue recognized (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue recognized	€ 6,514	€ 3,594	€ 1,335
Eli Lilly and Company \| Up-front payments
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue recognized	5,996	2,646	564
Eli Lilly and Company \| Other R&D services
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue recognized		270
Eli Lilly and Company \| Equity consideration
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue recognized	€ 518	321	69
Yarrow Biotechnology, Inc \| Up-front payments
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue recognized		191	252
Yarrow Biotechnology, Inc \| Other R&D services
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue recognized		118	282
Yarrow Biotechnology, Inc \| Equity consideration
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue recognized		€ 48	€ 168

Basis of Preparation

12 Months Ended

Dec. 31, 2023

Basis of Preparation

Basis of Preparation

2. Basis of Preparation

(a) Statement of compliance

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). These consolidated financial statements were authorized for issue by the Company’s Management Board and its Senior Management on March 13, 2024.

(b) Basis of measurement

The financial statements have been prepared on the historical cost basis except for financial instruments and share-based payment obligations which have been based on fair value. Historical cost is generally based on the fair value of the consideration given in exchange for assets.

These consolidated financial statements are presented in Euro, which is the Company’s functional currency. All amounts have been rounded to the nearest thousand, unless otherwise indicated.

(d) Going concern

The management board of ProQR has, upon preparing and finalizing the 2023 financial statements, assessed the Company’s ability to fund its operations for a period of at least one year after the date of signing these financial statements. Management has not identified significant going concern risks.

The financial statements of the Company have been prepared on the basis of the going concern assumption based on its existing funding, taking into account the Company’s current cash position and the projected cash flows based on the activities under execution on the basis of ProQR’s business plan and budget.

(e) Use of critical estimates and judgements

In preparing these consolidated financial statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Information about assumptions and estimation uncertainties that may have a significant risk of resulting in a material adjustment is included below:

(i) Revenue recognition for the Eli Lilly research and collaboration agreement

a. Identification of the performance obligation
Note 17 to the financial statements included elsewhere in this Annual Report describes the Company’s original research and collaboration agreement with Eli Lilly and Company, and the amended and restated research and collaboration agreement (collectively, the “Collaboration agreement”). Under the Collaboration agreement, ProQR provides Eli Lilly with a license (with a right to sub-license) to exploit compounds resulting from the collaboration. A significant amount of judgement is required to determine whether the license is distinct from the other promises in the contract. The license was concluded not to be distinct from the other promises in the contract based on the following considerations:

●

the license has no stand-alone value to Eli Lilly without the Company being involved in the research and development collaboration, and;

●

there are significant interdependencies between the license and the research and development services to be provided by the Company.

b. Determining the timing of satisfaction of performance obligations

Under the Collaboration agreement, the Company recognizes revenue over time, using an input method that estimates the satisfaction of the performance obligation as the percentage of labor hours incurred compared to the total estimated labor hours required to complete the promised services. As our estimate of the total labor hours required is dependent on the evolution of the research and development activities, it may be subject to change. If the progression and/or outcome of certain research and development activities would be different from the assumptions that were made during the preparation of these financial statements, this could lead to material adjustments to the total estimated labor hours, which might result in a reallocation of revenue between current and future periods. Our total deferred revenue balance related to this Eli Lilly performance obligation amounts to € 64,739,000 at December 31, 2023 (2022: € 71,209,000).

c. Determining the transaction price

The Company applied judgement to determine whether the equity investments made by Eli Lilly in ProQR are part of the transaction price for the Collaboration agreement. The Company concluded that the differences between the prices that Eli Lilly paid for the shares and the ProQR stock closing prices on the days of entering into the equity investment agreements arose because of the Company’s existing obligations to deliver research and development services to Eli Lilly under the terms of the Collaboration agreement. Therefore, the above differences between the closing share prices on the agreement effective dates and the equity investment prices paid by Lilly are considered to be part of the transaction price of the contract and are initially allocated to deferred revenue.

The contract also includes variable consideration, but no variable consideration was included in the transaction price, as it is not highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved.

(ii) Research and development expenditures

Research expenditures are reflected in the income statement. Development expenses are currently also reflected in the income statement because the criteria for capitalization are not met. At each balance sheet date, the Company estimates the level of service performed by the vendors and the associated costs incurred for the services performed.

Although we do not expect the estimates to be materially different from amounts actually incurred, the understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and could result in reporting amounts that are too high or too low in any particular period.

(f) Changes in accounting policies

The following standards, amendments to standards and interpretations became effective for annual reporting periods beginning on or after January 1, 2023:

●

IFRS 17 Insurance contracts: This standard is aimed at reporting entities who are insurers.

●

IAS 12 Income taxes: Amendments clarifying how companies account for deferred tax on transactions such as leases and decommissioning obligations.

●

IAS 8: Accounting policies, changes in accounting estimates and errors: Amendments enabling entities to distinguish between accounting policies and accounting estimates.

●

IAS 1 Presentation of financial statements: Amendments clarifying which accounting policies and accounting estimates preparers need to disclose.

●

IFRS 16 Leases: Amendments relating to sale and leaseback transactions.

In Note 23. Income taxes, we disclosed the impact of the amendments to IAS 12. None of the other new standards, amendments to standards and interpretations had a material impact on our financial statements. No changes in accounting policies occurred in 2023.

Property, Plant and Equipment

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment.

Property, Plant and Equipment

7. Property, Plant and Equipment


	Buildings and
	leasehold	Laboratory
	improvements	equipment	Other	Total
	(€ in thousands)	(€ in thousands)	(€ in thousands)	(€ in thousands)
Balance at January 1, 2022
Cost	22,231	4,245	1,344	27,820
Accumulated depreciation	(6,217)	(2,813)	(1,323)	(10,353)
Carrying amount	16,014	1,432	21	17,467

Additions	62	643	3	708
Depreciation	(1,852)	(660)	(9)	(2,521)
Effect of lease modification (Note 25)	592	—	—	592
Transfers	(22)	30	(8)	—
Disposals	—	(6)	—	(6)
Movement for the period	(1,220)	7	(14)	(1,227)

Balance at December 31, 2022
Cost	22,863	4,912	1,339	29,114
Accumulated depreciation	(8,069)	(3,473)	(1,332)	(12,874)
Carrying amount	14,794	1,439	7	16,240

Balance at January 1, 2023
Cost	22,863	4,912	1,339	29,114
Accumulated depreciation	(8,069)	(3,473)	(1,332)	(12,874)
Carrying amount	14,794	1,439	7	16,240

Additions	30	1,278	63	1,371
Depreciation	(1,951)	(546)	(16)	(2,513)
Effect of lease modification (Note 25)	1,859	—	—	1,859
Transfer	23	(30)	7	—
Disposals - cost	—	(252)	—	(252)
Accumulated depreciation on disposals	—	192	—	192
Movement for the period	(39)	642	54	657

Balance at December 31, 2023
Cost	24,775	5,908	1,409	32,092
Accumulated depreciation	(10,020)	(3,827)	(1,348)	(15,195)
Carrying amount	14,755	2,081	61	16,897

The depreciation charge for 2023 is included in research and development costs for an amount of € 1,994,000 (2022: € 2,088,000) and in general and administrative costs for an amount of € 519,000 (2022: € 433,000).

Buildings and leasehold improvements include a right-of-use asset relating to the lease of our Leiden office and laboratory space, with a carrying amount of € 14,524,000 at December 31, 2023 (2022: € 14,484,000).

Results related to financial liabilities measured at fair value through profit or loss

12 Months Ended

Dec. 31, 2023

22. Results related to financial liabilities measured at fair value through profit or loss

Results related to financial liabilities measured at fair value through profit or loss represent changes in the fair value of derivative financial instruments since their initial recognition. These derivative financial instruments consist of conversion options and warrants issued in connection with our convertible loans, which are described in Note 14.

Cash and Cash Equivalents (Details) - EUR (€) € in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash and Cash Equivalents.
Cash at banks	€ 59,775	€ 94,775
Deposits	59,150
Total cash and cash equivalents	€ 118,925	€ 94,775	€ 187,524	€ 75,838

Segment Information (Details)	12 Months Ended
Segment Information (Details)	Dec. 31, 2023 segment
Segment Information
Number of reportable segment	1

Other income (Tables)

12 Months Ended

Dec. 31, 2023

Other income

Schedule of other income


	2023	2022	2021

	(€ in thousands)
Net gain on divestment of intellectual property	2,931	—	—
Grant income	75	699	1,012
Other income	5	66	31
	3,011	765	1,043

Earnings Per Share

12 Months Ended

Dec. 31, 2023

Earnings Per Share

Earnings Per Share

24. Earnings Per Share

(a) Basic and diluted earnings per share

Basic earnings per share are calculated by dividing the result attributable to owners of the Company by the weighted average number of shares outstanding during the year.


	2023		2022		2021
Result attributable to owners of the Company (€ in thousands)		(28,119)		(64,424)		(60,740)
Weighted average number of shares outstanding		81,011,438		71,641,305		64,182,492
Basic (and diluted) earnings per share (€ per share)	€	(0.35)	€	(0.90)	€	(0.95)

(b) Diluted earnings per share

For the periods included in these financial statements, the share options are not included in the diluted earnings per share calculation as the Company was loss-making in all periods. Due to the anti-dilutive nature of the outstanding options, basic and diluted earnings per share are equal.

The Company did not declare dividends for any of the years presented in these financial statements.

Deferred Income

12 Months Ended

Dec. 31, 2023

Deferred Income

Deferred Income

15. Deferred Income

The following table summarizes details of deferred income at December 31, 2023 and December 31, 2022. The nature of the deferred income relating to Eli Lilly is described in Note 17.


	December 31,	December 31,
	2023	2022

	(€ in thousands)
Eli Lilly up-front payment and premium on equity consideration	64,739	71,209
Total deferred income	64,739	71,209
Current portion	(20,569)	(5,641)
Total non-current deferred income	44,170	65,568

The current portion of deferred income reflects the estimated value of the Company’s work under the Lilly collaboration that is expected to be performed within one year after the balance sheet date.

The table below analyzes ProQR’s undiscounted deferred income into relevant maturity groupings based on the remaining period at year-end until the contractual maturity date:


	Less than	Between 1	Between 2
	1 year	and 2 years	and 5 years	Over 5 years

	(€ in thousands)
At December 31, 2023
Deferred Income	20,569	27,950	16,220	—
Total	20,569	27,950	16,220	—

At December 31, 2022
Deferred Income	5,641	17,817	47,751	—
Total	5,641	17,817	47,751	—

Operating Costs (Tables)

12 Months Ended

Dec. 31, 2023

Operating costs

Operating costs


	2023	2022	2021

	(€ in thousands)
Employee benefits	20,349	30,286	26,320
External R&D costs	4,809	19,824	15,580
Laboratory costs and other consumables	3,473	3,111	2,709
Advisory and legal costs	4,262	6,766	4,674
Insurance costs	1,458	1,895	1,979
Depreciation	2,513	2,521	2,329
Patent and license expenses	303	611	428
Other	4,217	4,504	5,569
	41,384	69,518	59,588

Financial Income and Expense (Tables)

12 Months Ended

Dec. 31, 2023

Financial Income and Expense

Schedule of financial income and expense


	2023	2022	2021

	(€ in thousands)
Interest income:
Current accounts and deposits	2,593	106	5
Interest costs:
Current accounts and deposits	(31)	(406)	(355)
Lease liability	(774)	(793)	(835)
Loans and borrowings	(398)	(3,928)	(2,215)
Foreign exchange result:
Net foreign exchange benefit/(loss)	(255)	4,757	1,511
	1,135	(264)	(1,889)

Leases

12 Months Ended

Dec. 31, 2023

Leases

Leases

25. Leases

The Company leases office and laboratory facilities of 4,818 square meters at Zernikedreef in Leiden, the Netherlands, where our headquarters and our laboratories are located. The current lease agreement for these facilities terminates on June 30, 2031. The lease agreement contains no significant dismantling requirements.

The initial 10-year lease agreement for the Leiden office and laboratory facilities was accounted for as of commencement date July 1, 2020. This 10-year period was extended by 1 year to an 11-year period in December 2020. The lease contract may be extended for subsequent 5-year periods. As the Company is not reasonably certain to exercise these extension options, these are not included in the lease term.

The initially recognized lease liability and the corresponding right-of-use asset for this lease contract, on July 1, 2020, amounted to € 16,203,000 and € 16,332,000, respectively. A modification to reflect the additional 1 year lease period resulted in an increase in the carrying amounts of the lease liability and the right-of-use asset in 2020 of € 1,260,000.

Annually in June, the lease price is amended to reflect an indexation. In June 2023, the lease liability was remeasured, resulting in an increase in the carrying amounts of the lease liability and the right-of-use asset of € 1,863,000 (2022: € 592,000 and 2021: € 415,000).

The following table summarizes the relevant disclosures in relation to our leases in 2023, 2022 and 2021:


	2023	2022	2021
	(€ in thousands)	(€ in thousands)	(€ in thousands)
Depreciation charge for right-of-use assets	1,833	1,737	1,672
Interest expense on lease liabilities	774	793	835
Expense relating to short-term leases	28	94	70
Total cash outflow for leases	2,423	2,701	1,657
Additions to right-of-use assets during the period	1,863	592	536

The carrying amount of the right-of-use asset at the end of the reporting period is disclosed in Note 7 Property, Plant & Equipment.

A maturity analysis of our lease liability is included in Note 5 Financial Risk Management under (c) Liquidity risk. The total undiscounted commitment for lease agreements to which the Company had committed at December 31, 2023 amounts to € 18,511,000 (2022: € 18,646,000). This amount does not include potential commitments that may arise from contractual extension options, as the Company is not reasonably certain that any extension options will be exercised.

Prepayments and Other Receivables (Tables)

12 Months Ended

Dec. 31, 2023

Prepayments and Other Receivables.

Prepayments and Other Receivables


	December 31,	December 31,
	2023	2022

	(€ in thousands)
Prepayments	793	2,449
Eli Lilly up-front receivable	—	56,254
Other receivables	745	375
	1,538	59,078

Commitments and Contingencies

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies

Commitments and Contingencies

26. Commitments and Contingencies

(a) Claims

There are no claims known to management related to the activities of the Company.

(b) Patent license agreements

On October 29, 2018, ProQR signed an agreement with Ionis Pharmaceuticals (“Ionis”) to license QR-1123 (formerly “IONIS-RHO-2.5Rx”), an RNA medicine for autosomal dominant retinitis pigmentosa (“adRP”) caused by the P23H mutation in the rhodopsin (“RHO”) gene. Under the terms of the agreement, ProQR was granted an exclusive worldwide license to QR-1123 and relevant patents. In 2018, ProQR paid the first installment of an upfront payment in ordinary shares in the aggregate amount of $ 2,500,000 at $ 22.23 per share, which represents a 20% premium (based on the volume weighted average price of the previous 20 trading days) to its common stock, to Ionis upon signing the agreement. In 2019, ProQR paid the second installment of the upfront payment in ordinary shares in the aggregate amount of $ 3,501,000, at $ 9.43 per share. This license agreement was terminated effective January 2024.

In April 2014, the Company entered into a Patent License Agreement with Radboud University Medical Center (“Radboud”) in the field of antisense oligonucleotide-based therapy for Leber congenital amaurosis (“LCA”). Under the terms of this license agreement, the Company has an exclusive, sublicensable, world-wide royalty-bearing license under certain Radboud patent rights to develop, make, have made, use, sell, offer for sale and import certain licensed products of Radboud for use in all prophylactic and therapeutic uses in the field of LCA. This license is assigned in full per December 2023 as part of the divestment of the product sepofarsen.

In June 2015, the Company entered into another license agreement with Radboud. Under the terms of this license agreement, the Company has an exclusive, sublicensable, world-wide royalty-bearing license under certain Radboud patent rights to develop, make, have made, use, sell, offer for sale and import certain licensed products of Radboud for use in all prophylactic and therapeutic uses in the field of Usher syndrome. This license was assigned in full per December 2023 as part of the divestment of the product ultevursen.

In January 2018, the Company entered into a license agreement with Inserm Transfert SA and Assistance-Publique-Hôpiteaux de Paris. Under the terms of the agreement, the Company has a world-wide, exclusive, royalty-bearing license under patent rights belonging to Inserm Transfert SA and other co-owners to develop, have developed, make, have made, use, have used and sell, have sold or otherwise distribute certain licensed products related to antisense oligonucleotides for treating LCA and method of treatment claims relating to modulation of the splicing of the CEP290 gene product. This license agreement is assigned per December 2023 in connection with the sale of the ophthalmology products, sepofarsen and ultevursen. In consideration for the assignment, the Company has agreed to accept certain royalty obligations upon sepofarsen reaching certain regulatory milestones and net sales of products sold.

In January 2017, the Company entered into an agreement with the Leiden University Medical Center (“LUMC”), which gives us a world-wide, exclusive, royalty-bearing license in the field of Huntington’s disease, under certain patent rights of LUMC regarding antisense oligonucleotide based therapies. This license agreement contains certain diligence obligations for the Company coupled to milestone payments and complements the Company’s intellectual property relating to the HD program. This license was terminated per July 2023.

In February 2019, the Company entered into an agreement with the University of Rochester, New York, which gives us a world-wide, exclusive, royalty-bearing, sublicensable license in the field of antisense oligonucleotides for use in nucleotide specific RNA editing through pseudouridylation, under certain patent rights of University of Rochester. This license agreement contains certain diligence obligations for the Company coupled to milestone payments and complements the Company’s intellectual property relating to the Axiomer/pseudouridylation program.

In September 2020, the Company entered into an agreement with Vico Therapeutics B.V., which gives us a world-wide, exclusive, royalty-bearing, sublicensable license in the field of the prophylactic and therapeutic use of antisense oligonucleotide for the treatment of Fuch’s Endothelial Corneal Dystrophy caused by a trinucleotide repeat, under certain patent rights of Vico Therapeutics B.V. In partial consideration of the rights and licenses granted by the license agreement, the Company is required to make annual maintenance payments. Unless terminated earlier in accordance with the terms of the license agreement, the agreement will stay in effect until the expiration of all of the licensed patent rights. The license agreement may be terminated by either party in the event of an uncured breach by the breaching party. Vico Therapeutics B.V. may terminate the license agreement if the Company applies for an order or an order is made declaring the Company bankrupt or granting the Company suspension of payments, or a liquidator is appointed for the Company, or the Company is dissolved, liquidated, or ceases to carry on all or a substantial part of its business or a decision is taken to that effect, or in the event uncured payment defaults. The development of this candidate has been suspended per the strategic shift in focus as announced in August 2022.

On February 9, 2018, the Company entered into an agreement with FFB, under which FFB has provided funding of $ 6.8 million (€ 6.3 million) to advance ultevursen into the clinic.

Pursuant to the terms of the agreement, we were obligated to make certain repayments to FFB subject to development milestones. In December 2023, upon the occurrence of the sale of ultevursen to Théa, these payables were settled by means of a lump-sum payment in the amount of € 1.1 million and a percentage of earn-out payments for milestones and sales to be received by us from Théa, ranging from 5-10%.

(d) Research and development commitments

The Company has research and development commitments, mainly with CRO’s, amounting to € 8,893,000 at December 31, 2023 (2022: € 8,030,000). Of these obligations an amount of € 7,162,000 is due in 2024, the remainder is due in 2 to 5 years.

Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2023

Employee Benefits

Schedule of employee benefit


	2023	2022	2021

	(€ in thousands)
Wages and salaries	13,797	23,441	16,838
Social security costs	2,480	2,661	2,124
Pension costs — defined contribution plans	966	1,315	1,142
Equity-settled share based payments	3,106	2,869	6,216
	20,349	30,286	26,320
Average number of employees for the period	144.0	163.0	163.0

Schedule of employee per activity


	December 31, 2023	December 31, 2022	December 31, 2021
Research and Development	122.4	103.5	140.7
General and Administrative	34.2	26.7	40.9
Total number of employees (converted to FTE)	156.6	130.2	181.6

Other Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Other Taxes

Other Taxes


	December 31,	December 31,
	2023	2022

	(€ in thousands)
Value added tax	523	607
	523	607

Related-Party Transactions - Stock options (Details) € in Thousands	12 Months Ended
	Dec. 31, 2023 EUR (€) Option Options tranche shares	Dec. 31, 2023 Option Options $ / shares shares	Dec. 31, 2022 EUR (€) Option Options	Dec. 31, 2022 $ / shares	Dec. 31, 2021 EUR (€) Option Options € / shares shares	Dec. 31, 2021 $ / shares
Sofinnova Capital VII FCPR
Transactions between the Company and related parties
Number of ordinary shares outstanding \| shares	2,764,194	2,764,194
Mr. Dinko Valerio
Transactions between the Company and related parties
Number of ordinary shares outstanding \| shares	725,692	725,692
Number of options outstanding \| Options	192,964	192,964
Number of options granted	22,608		23,931		23,239
Exercise price of options granted \| $ / shares		$ 3.41		$ 8.01		$ 4.20
Shares sold through exercise of options \| shares					32,272
Mr. Dinko Valerio \| Scenario One
Transactions between the Company and related parties
Number of tranches	4
Vesting percentage per tranche	25.00%
Mr. Dinko Valerio \| Scenario Two
Transactions between the Company and related parties
Number of tranches	13
Number of remaining tranches after first tranche	12
Vesting percentage per tranche	6.25%
Ms. Alison F. Lawton
Transactions between the Company and related parties
Number of options outstanding \| Options	205,784	205,784
Number of options granted	22,608		23,931		23,239
Exercise price of options granted \| $ / shares		$ 3.41		8.01		4.20
Ms. Alison F. Lawton \| Scenario One
Transactions between the Company and related parties
Number of tranches	4
Vesting percentage per tranche	25.00%
Ms. Alison F. Lawton \| Scenario Two
Transactions between the Company and related parties
Number of tranches	13
Number of remaining tranches after first tranche	12
Vesting percentage per tranche	6.25%
Mr. James Shannon
Transactions between the Company and related parties
Number of ordinary shares outstanding \| shares	61,538	61,538
Number of options outstanding \| Options	202,044	202,044
Number of options granted \| Option	22,608		23,931		23,239
Exercise price of options granted \| $ / shares		$ 3.41		8.01		4.20
Mr. James Shannon \| Scenario One
Transactions between the Company and related parties
Number of tranches	4
Vesting percentage per tranche	25.00%
Mr. James Shannon \| Scenario Two
Transactions between the Company and related parties
Number of tranches	13
Number of remaining tranches after first tranche	12
Vesting percentage per tranche	6.25%
Mr. Bart Filius
Transactions between the Company and related parties
Number of options outstanding \| Option	107,148	107,148
Number of options granted \| Option	22,608		23,931		23,239
Exercise price of options granted \| $ / shares		$ 3.41		8.01		4.20
Mr. Bart Filius \| Scenario One
Transactions between the Company and related parties
Number of tranches	4
Vesting percentage per tranche	25.00%
Mr. Bart Filius \| Scenario Two
Transactions between the Company and related parties
Number of tranches	13
Number of remaining tranches after first tranche	12
Vesting percentage per tranche	6.25%
Ms. Begona Carreno
Transactions between the Company and related parties
Number of options outstanding \| Option	26,468	26,468
Number of options granted \| Option	22,903		3,565
Exercise price of options granted \| $ / shares		$ 3.41		0.95
Number of tranches	13
Number of remaining tranches after first tranche	12
Vesting percentage per tranche	6.25%
Ms. Theresa Heggie
Transactions between the Company and related parties
Number of ordinary shares outstanding \| shares	26,499	26,499
Number of options outstanding \| Option	334,756	334,756
Number of options granted \| Option	14,418		159,150		123,239
Exercise price of options granted \| $ / shares		$ 1.74		0.84		6.25
Ms. Theresa Heggie \| Scenario One
Transactions between the Company and related parties
Number of tranches	4
Vesting percentage per tranche	25.00%
Ms. Theresa Heggie \| Scenario Two
Transactions between the Company and related parties
Number of tranches	13
Number of remaining tranches after first tranche	12
Vesting percentage per tranche	6.25%
Mr. D.A. de Boer
Transactions between the Company and related parties
Number of ordinary shares outstanding \| shares	705,309	705,309
Number of options outstanding \| Option	4,011,888	4,011,888
Number of options granted	442,182		1,650,051		442,279
Exercise price of options granted \| $ / shares		$ 3.41		0.76		$ 4.20
Bonus based on goals realized \| €	€ 643		€ 791		€ 284
Weighted average remaining contractual life of outstanding share options			6 years 8 months 12 days
Mr. D.A. de Boer \| Scenario One
Transactions between the Company and related parties
Number of tranches	4
Vesting percentage per tranche	25.00%
Mr. D.A. de Boer \| Scenario Two
Transactions between the Company and related parties
Number of tranches	13
Number of remaining tranches after first tranche	12
Vesting percentage per tranche	6.25%
Mr. R.K. Beukema
Transactions between the Company and related parties
Number of ordinary shares outstanding \| shares	460,000	460,000
Number of options outstanding \| Option	1,363,318	1,363,318
Number of options granted \| Option	132,123		1,000,000
Exercise price of options granted \| $ / shares		$ 3.41		$ 0.66
Bonus based on goals realized \| €	€ 481		€ 84
Weighted average remaining contractual life of outstanding share options			7 years 7 months 6 days
Mr. R.K. Beukema \| Scenario One
Transactions between the Company and related parties
Number of tranches	4
Vesting percentage per tranche	25.00%
Mr. R.K. Beukema \| Scenario Two
Transactions between the Company and related parties
Number of tranches	13
Number of remaining tranches after first tranche	12
Vesting percentage per tranche	6.25%

Investments in Associates - Narrative (Details) € in Thousands	1 Months Ended	12 Months Ended
	May 31, 2021	Dec. 31, 2022 EUR (€)	Dec. 31, 2021 EUR (€)	Dec. 31, 2022 USD ($) director
Disclosure of associates [line items]
Investments in associates			€ 8
Results related to associates		€ (8)	€ (217)
Yarrow Biotechnology, Inc
Disclosure of associates [line items]
Proportion of ownership interest in associate	8.00%	5.10%
Investments in associates \| $				$ 0
Total number of board members \| director				3
Right to appoint number of board member \| director				1
Results related to associates		€ (8)

Borrowings (Details) $ in Thousands				1 Months Ended			2 Months Ended	3 Months Ended	12 Months Ended					17 Months Ended
Borrowings (Details) $ in Thousands	Dec. 31, 2021 EUR (€)	Dec. 31, 2021 USD ($)	Dec. 29, 2021 shares	Dec. 31, 2023 EUR (€)	Aug. 31, 2020 EUR (€) tranche	Jul. 31, 2020 USD ($) tranche	Aug. 31, 2021 shares	Dec. 31, 2023 EUR (€)	Dec. 31, 2023 EUR (€)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 EUR (€)	Dec. 31, 2021 EUR (€)	Dec. 31, 2021 USD ($)	Dec. 31, 2021 EUR (€)	Dec. 31, 2019 EUR (€)	Dec. 10, 2018 EUR (€)
Disclosure of detailed information about borrowings [line items]
Total borrowings				€ 4,292,000				€ 4,292,000	€ 4,292,000		€ 6,771,000
Current portion											(2,500,000)
Total non-current borrowings				4,292,000				4,292,000	4,292,000		4,271,000
Gain on waiver of Amylon convertible loans									1,866,000		1,144,000
Loss on extinguishment of Pontifax and Kreos convertible loans											(2,534,000)
Proceeds from borrowings												€ 1,137,000
Debt convertible												€ 26,520,000
Innovation credit
Disclosure of detailed information about borrowings [line items]
Total borrowings				2,899,000				2,899,000	2,899,000		3,907,000
Accrued interest				1,393,000				1,393,000	1,393,000		1,035,000
RVO innovation credit for cystic sepofarsen program [Member]
Disclosure of detailed information about borrowings [line items]
Total non-current borrowings				2,899,000				2,899,000	€ 2,899,000
Notional amount																€ 3,907,000
Repayment of borrowings								€ 1,008,000
Conditional waiver of debt including accrued interest				€ 4,292,000
Convertible Debt
Disclosure of detailed information about borrowings [line items]
Total borrowings											1,369,000
Accrued interest											460,000
Convertible Debt \| Maximum
Disclosure of detailed information about borrowings [line items]
Number of shares exercisable for issued warrants \| shares							302,676
Convertible loans Amylon Therapeutics B.V.
Disclosure of detailed information about borrowings [line items]
Notional amount															€ 2,300,000
Gain on waiver of Amylon convertible loans										$ 1,866	€ 1,144,000
Interest rate (as percent)				8.00%				8.00%	8.00%
Convertible Debt Pontifax Medison and Kreos Capital Debt Financing
Disclosure of detailed information about borrowings [line items]
Interest rate (as percent)				8.20%				8.20%	8.20%
Warrants, economic lifetime									5 years	5 years
Convertible Debt Pontifax Medison Debt Financing
Disclosure of detailed information about borrowings [line items]
Notional amount \| $						$ 30,000
Proceeds from borrowings													$ 10,000	€ 8,400,000
Number of tranches \| tranche						3
Maximum borrowing capacity per tranche \| $						$ 10,000
Term of debt						54 months
Debt, interest only payment term						24 months
Convertible Debt Kreos Capital Debt Financing
Disclosure of detailed information about borrowings [line items]
Notional amount					€ 15,000,000
Proceeds from borrowings														€ 5,000,000
Number of tranches \| tranche					3
Maximum borrowing capacity per tranche					€ 5,000,000
Term of debt					54 months
Debt, interest only payment term					24 months
Convertible Debt Pontifax Medison and Kreos Capital Debt Financing, amended agreement
Disclosure of detailed information about borrowings [line items]
Proceeds from borrowings	€ 26,500,000	$ 30,000
Term of debt			54 months
Debt, interest only payment term			33 months
Number of tranches from original agreement replaced with amendment agreement			2
Convertible Debt Pontifax Medison and Kreos Capital Debt Financing, amended agreement \| Maximum
Disclosure of detailed information about borrowings [line items]
Number of shares exercisable for issued warrants \| shares			376,952