Financial Reports 2019

Annual Report 2019

Issue link: https://liminalbiosciences.com/resources/i/1228785

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118 As at December 31, 2019 and 2018, the Company's net exposure to currency risk through assets and liabilities denominated respectively in U.S. dollars and £ was as follows: 2019 2018 Amount Equivalent in Amount Equivalent in Exposure in US dollars in U.S. dollar full CDN dollar in U.S, dollar full CDN dollar Cash and cash equivalents 26,032,017 33,883,273 2,600,253 3,544,145 Accounts receivable 159,604 207,741 2,718,508 3,705,326 Other long-term assets 45,428 59,129 51,127 69,686 Accounts payable and accrued liabilities (7,209,564 ) (9,383,969 ) (9,006,635 ) (12,276,044 ) Lease liabilities (22,426,384 ) (29,140,152 ) - - Other long-term liabilities - - (3,126,476 ) (4,261,387 ) Finance lease obligations - - (600,674 ) (818,719 ) Long-term debt - - (81,601,614 ) (111,223,000 ) Net exposure (3,398,899 ) (4,373,978 ) (88,965,511 ) (121,259,993 ) 2019 2018 Amount Equivalent in Amount Equivalent in Exposure in pounds (£) in £ full CDN dollar in £ full CDN dollar Cash and cash equivalents 279,840 480,233 729,732 1,266,596 Accounts receivable 713,078 1,223,713 6,837,168 11,867,272 Income tax receivable 5,369,467 9,214,542 - - Accounts payable and accrued liabilities (971,763 ) (1,667,642 ) (1,535,107 ) (2,664,485 ) Lease liabilities (350,783 ) (601,979 ) - - Net exposure 5,039,839 8,648,867 6,031,793 10,469,383 Based on the above net exposures as at December 31, 2019, and assuming that all other variables remain constant, a 10 % depreciation or appreciation of the Canadian dollar against the U.S. dollar would result in a decrease or an increase of the consolidated net loss of approximately $437 while a 10 % depreciation or appreciation of the Canadian dollar against the £ would result in a decrease or an increase of the total comprehensive loss of approximately $865. The Company has not hedged its exposure to currency fluctuations. 33. Subsequent events Consistent with its strategy to limit its involvement in the plasma-derived therapeutics segment to the development of Ryplazim ® , the Company decided to close its R&D facility in Rockville, MD by the end of the year and made the announcement to the employees during the first quarter of 2020. As a result of this decision, the Company will be recognizing, during the service period in 2020, an expense of approximately $1,952 (US$1.5 million) in the consolidated statement of operations representing the maximum termination benefits it has committed to pay the employees. In connection with this closure, the Company also recognized impairments on its capital assets related to this facility in 2019 (note 25). On January 29, 2020, the Company issued 96,833 common shares as a consideration for the final payment for the licence acquired on January 29, 2018 (note 11).

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