10. Fair value adjustments, net currency exchange differences and other financial income/expenses
The following table summarizes fair value adjustments and net currency exchange differences, and other financial income and expenses for the years ended 31 December 2023 and 2022.
|
Year ended 31 December |
|||
|---|---|---|---|---|
(thousands of €) |
2023 |
2022(*) |
||
Fair value adjustments and net currency exchange differences: |
|
|
||
Net unrealized currency exchange gain/loss (-) |
(20,544) |
41,559 |
||
Net realized currency exchange gain/loss (-) |
(1,118) |
2,825 |
||
Fair value re-measurement of warrants |
18 |
186 |
||
Fair value loss on financial assets held at fair value through profit or loss |
(390) |
- |
||
Fair value gain on current financial investments |
38,286 |
6,929 |
||
Total fair value adjustments and net currency exchange differences |
16,252 |
51,498 |
||
|
|
|
||
Other financial income: |
|
|
||
Interest income |
79,290 |
18,094 |
||
Discounting effect of non-current R&D incentives receivables |
617 |
93 |
||
Discounting effect of other non-current liabilities |
318 |
- |
||
Other finance income |
24 |
376 |
||
Total other financial income |
80,249 |
18,563 |
||
|
|
|
||
Other financial expenses: |
|
|
||
Interest expenses |
(1,770) |
(6,884) |
||
Discounting effect of other non-current liabilities |
- |
(2,271) |
||
Other finance charges |
(843) |
(699) |
||
Total other financial expenses |
(2,613) |
(9,854) |
||
|
|
|
||
Total net financial result |
93,888 |
60,206 |
||
|
||||
The net currency unrealized exchange loss in 2023 of €20.5 million primarily consisted of an unrealized exchange loss of €20.4 million on cash and cash equivalents and current financial investments at amortized cost held in U.S. dollars, as compared to an unrealized exchange gain in 2022 of €41.3 million on cash and cash equivalents and current financial investments at amortized cost held in U.S. dollars. We have cash, cash equivalents and current financial investments held in U.S. dollars, which could generate foreign currency exchange gain or loss in our financial results in accordance with the fluctuation of the EUR/U.S. dollar exchange rate as our functional currency is EUR.
The fair value gain on the current financial investments in 2023 reflected the exchange differences on the money market funds, the interest on these money market funds and the effect of the re-measurement at fair value of our money market funds on 31 December 2023. These re-measurement gains were mainly the result of the positive returns on the EUR denominated money market funds.
Interest income was related to interests on treasury bills, term deposits and notice accounts. Net interest income increased due to increasing interest rates.
Interest expenses were related to interests on term deposits, treasury bills and on leases of buildings and cars. Other financial expense for 2022 also comprise the discounting effect of other non-current liabilities as deferred consideration and milestones payables related to the acquisition of subsidiaries.