Annual Report 2012.pdf - Karo Bio

Notes
NOTE 8 INTEREST EXPENSE AND OTHER SIMILAR EXPENSES
Interest expense and other similar expenses amounted to KSEK 15 (1,388 and
2,500, respectively) for the Group. Of the amount, KSEK 1,370 was a cost for the
adjustment for the Equity Credit Facility (EFC) agreement that the company entered
into in 2010. Of the amount for 2011, KSEK 2,440 was an upfront payment
of 1% of the ECF agreement that the Company entered into in 2010. Since the
utilization of the ECF is conditional upon future resolutions of general meetings,
this upfront payment is accounted for as a financial expense in the income
statement. The remaining part of KSEK 15 (18 and 60, respectively) consists of
interest charges on banking accounts and financial leasing (see also note 20).
Also for the Parent Company KSEK 3 (1,370) is an upfront payment of the ECF
agreement while the remaining amount of KSEK 4 is interest charges on bank
accounts. For 2012, the amount refers to interest charges on bank accounts.
NOTE 9 TAXES
Since Karo Bio is reporting losses for income taxation it is currently not paying
any income taxes. Karo Bio has not recognized any deferred tax assets in
relation to the unutilized tax losses carried forward as there is no convincing
evidence, according to the definition in IAS 12, that sufficient future taxable
profits will be available.
At year-end, the Parent Company’s unutilized tax losses carried forward amounted
to MSEK 2,238 (2,136 and 1,909, respectively). There is no statutory time
limit for Swedish companies to utilize tax losses.
RECONCILIATION BETWEEN ACTUAL AND NOMINAL TAX Group Parent Company
2012 2011 2010 2012 2011
Reported loss before tax –98,254 –226,626 –163,537 –98,592 –226,612
Tax at nominal tax rate 26.3 % (26.3% and 28.0% respectively) 25,841 59,603 43,010 25,930 59,599
Tax effect from deductible items not recorded as expenses 1,161 - 8,997 1,161 -
Tax effect from other non-deductible items –27 –65 –62 –27 –65
Tax effect of losses for which no deferred tax assets are recognized –26,975 –59,538 –51,945 –27,064 –59,534
Tax on reported loss 0 0 0 0 0
NOTE 10 LOSS FOR THE YEAR
The entire loss is related to the Parent Company’s shareholders,
no minority interests exist.
NOTE 11 LOSS PER SHARE
Loss per share is calculated as the loss for the year in relation to the weighted
average number of shares outstanding during the year. Warrants are
non-dilutive as exercise of warrants would decrease the loss per share reported
for 2010–2012. Per share data is calculated based on the following number of
shares.
NUMBER OF SHARES OUTSTANDING
(000) 2012 2011 2010
Weighted average during the year 387,064 387,064 242,334
At year-end 387,064 387,064 387,064
The number of shares for periods prior to rights issues has been adjusted
for the bonus element in accordance with IAS 33 Earnings per share.
NOTe 12 LICENSES AND SIMILAR RIGHTS
Licenses and similar rights consist of exclusive rights to technologies licensed
from Duke University, Durham, North Carolina in 2001 and licenses from University
of California, San Francisco for scientific rights that were acquired in 1996.
In 2007, a follow-up investment of KSEK 3,460 was made in the license from Duke
University, in accordance with the terms of the license agreement.
Group Parent Company
2012 2011 2010 2012 2011
Opening balance acquisition cost 33,779 33,779 33,779 74,719 74,719
Acquisitions - - - - -
Closing balance acquisition cost 33,779 33,779 33,779 74,719 74,719
Opening balance amortization –33,779 –33,779 –33,234 –74,719 –74,719
Depreciation for the year - - –545 - -
Closing balance accumulated amortization –33,779 –33,779 –33,779 –74,719 –74,719
Net book value 0 0 0 0 0
KARO BIO Annual Report 2012 31