Bono-backed biotech firm Nuritas identifies significant uncertainty
Nuritas, an Irish biotech company that uses artificial intelligence to identify supplements and new drugs, has indicated uncertainty over its ability to estimate its financial position, operating results and future cash flow.
n the biotech company’s most recent results for 2020, Nuritas said the board has assessed its cash flow forecast for the next 12 months, taking into account the “current broad political and economic uncertainty” and the potential effect of Covid-19.
Nuritas – who was founded by Dr Nora Khaldi in 2014 and received backing from Bono and U2’s The Edge in 2016 – said in the accounts the company completed the first phase of a fundraising round, which remained open. He expected that he would receive further equity investments “in the coming months”, but this had not been guaranteed. He also said he was in “late stage negotiations” with several trading partners, and expected these to be completed in 2021.
Due to the uncertainty of the outcome of current events, Nuritas stated in the accounts that it “cannot accurately estimate the financial condition, results of operations or future cash flows of the business” . The directors have recognized the existence of a material uncertainty which could cast material doubt on the ability of Nuritas to continue as a going concern.
Despite this, Nuritas directors said they were “confident” the company could manage the risks posed to the business by Covid-19 given its financial resources and strong relationships with investors and customers. . They concluded that Nuritas had sufficient resources to continue its operational existence for the foreseeable future, with an appropriate “going concern” basis for the financial statements.
The 2020 accounts show that Nuritas had withheld losses of just over 18.1 million euros at the end of last December. This compares to undistributed losses of over € 12.5 million at the end of the previous year.
Nuritas also had net current liabilities of nearly € 416,000 in 2020 compared to net current assets of over € 3.6 million the previous year. It employed an average of 44 people per month in 2020.
In response to the Independent Sunday, Nuritas said it did not comment on its financial information. However, he added that 2021 had turned out to be a “historic year” for the company, having expanded its portfolio of peptide ingredients and entered into global agreements, such as a with Japanese Sumitomo.