ANNUAL REPORT 2012 - TiGenix

TiGenix receives net interest on the sums
it has outstanding on its bank deposits,
therefore there is a decrease in interests
in 2012 related to the decrease in the
outstanding bank balances.
The interest on borrowings consists of the
interests on the credit facilities received from
ING and BNPParibas Fortis. Furthermore, the
interest expenses also comprise the interest
on the subordinated loan from IWT. The
decrease in interest expenses relates to the
reimbursement of the interest-bearing loans.
The net foreign exchange gains and losses
mainly relate to transactions with TiGenix
Inc. and to transactions in the United
Kingdom. The decrease in foreign exchange
differences in 2012 is completely related to
the strength of the EUR versus the USD.
(6) Discontinued operations
In 2011, the Group announced a plan to
dispose of TiGenix Ltd, a 100 % subsidiary of
the Group. As a result of this decision, TiGenix
Ltd was classified as a disposal group held
for sale at December 31, 2011 (see note 8).
This decision was made in the context of
the strategy of the Company to focus its
activities on cell therapy products. After this
decision, the intellectual property relating to
TiGenix Ltd was fully impaired, based on the
expected future cash flows to be obtained
from a hypothetical sale of TiGenix Ltd after
the classification as held for sale. As a result
of this classification, all assets and liabilities of
the company were measured at the lower of
carrying amount and fair value less costs to
sell. Based on this exercise, impairment losses
were recognized on intangible assets.
The loans are further commented in section
11.5.3.3 and in note 19 to these consolidated
financial statements.
(5) Income tax expense
There is no current tax accounted for in any
of the periods presented. The income tax
expense consists solely of deferred tax items
which compensate each other completely.
The deferred taxes are further detailed in
note 20.
At the end of 2012, the Company
announced the definitive closure of its
biomaterials unit, TiGenix Ltd., to allow the
Company to fully focus on further progressing
in the commercial roll-out of ChondroCelect,
and its cell therapy product development
pipeline. As such, all operating activities
were stopped by the end of 2012.
130 TiGenix I annual report 2012