presentation of biological assets in the balance sheet

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Biological Assets

These are organic resources utilized by agricultural-based companies to generate organic products.

Prior to joining UBS as an Investment Banker, Himanshu worked as an Investment Associate for Exin Capital Partners Limited, participating in all aspects of the investment process, including identifying new investment opportunities, detailed due diligence,  financial modeling  &  LBO  valuation and presenting investment recommendations internally.

Himanshu holds an  MBA  in Finance from the Indian Institute of Management and a Bachelor of Engineering from Netaji Subhas Institute of Technology.

What are Biological Assets?

• Understanding The Nature Of Biological Asset
• The Importance Of Biological Assets
• Accounting Treatment Of Biological Assets

Biological Assets FAQs

Biological assets are organic resources utilized by agricultural-based companies to generate organic products. Companies operate across various industries, each catering to specific customers and establishing a unique market presence.

In every industry, including agriculture-based companies, materials are essential for production. Agricultural firms specialize in creating products related to plants and plant-derived items, such as wheat, barley, and livestock.

To sustain production, these companies require input materials, like bone feed for crop fertilization. These essential resources are referred to as Biological Assets.

Agro-based companies holding biological assets include companies belonging to various industries, such as:

• Livestock and Diary 
• Fishery and Poultry 
• Agriculture 
• Psychoactive drugs 
• Forestry and Paper 

Biological assets are a trivial part of a company's Statement of Financial Position, especially when the company is agro-based. The IAS 41, set by the IASB, sets the standard in dealing with biological assets, as these assets are difficult to record due to their recurring maintenance.

Key Takeaways

• Biological assets are living assets, such as plants and livestock, crucial for agriculture-based companies.
• These assets require significant care, making them costly to maintain, especially livestock.
• Unlike conventional assets, biological assets have expiration dates, necessitating inventory investment.

Understanding The Nature Of Biological Asset 

Biological assets or agricultural produce, as obviously as it is a tangible asset , is a trivial component of the business model of agro-based enterprises or individuals such as farmers, weavers, or anyone involved in agro-business.

That being said, biological assets, as it may look like a fantastic business model since humanity depends on them no matter where on earth, is still a difficult venture to pursue.

It require constant care, which is both time-consuming and resource-extensive, making the business quite expensive to maintain, especially the livestock, which requires cattle feed, care, and shelter to ensure the quality of life and produce.

And we haven’t even touched the pressing matter for any manufacturing-based or goods-based businesses, which is inventory. 

Unlike conventional manufacturing, where the asset has a good shelf life that can be used when required, agro-based products have an expiration date and require heavy investment in inventory facilities such as silos and warehouses. 

The  International Accounting Standards (IAS) 41  states that the fair value of biological assets or agricultural products is derived from its market price less any costs of goods sold (including transferable taxes and customs duties, commission, and levies).

To learn more about the IAS 41 standard issued by the IASB, which regulates the accounting practice revolving around agriculture, kindly visit  Deloitte IAS Plus - IAS 41 Agriculture , as Deloitte explains the standard professionally.  

The Importance Of Biological Assets 

As mentioned above, biological assets play a trivial role in the day-to-day operations of agro-based industries, just like any assets would to their respective industries. Still, the only difference is that qualitatively, the biological assets are typically alive as in living.

Therefore, such biological assets are recorded in the Statement of Financial Positions ( Balance Sheet ) of agro-based companies as assets that bring them substantial revenue.

Even though agricultural products bring in a substantial amount of revenue, there is a con to that. Since biological assets are technically living. Living organisms don't remain the same; they depreciate as they age (basic biology).

Due to the aging factor, the product’s freshness and quality fall, leading to the expiration date and becoming unfit for consumption. And, of course, the demand: not everyone consumes the same thing day in and day out, due to which the agricultural consumption remains seasonal.

Therefore, running an agro-based business is no small fleet as maintaining the agro-based business is qualitatively challenging (age, demand, damage, or theft) and quantitatively exhausting (expensive), but, in the long run, with the right strategy, it is substantially rewarding. 

The IASB set the standard of IAS 41 as the term “biological assets” is quite new to the accounting field and must be recorded in the financial statements due to the trivial role it plays in agro-based enterprises' ongoing operations and growth. 

Accounting Treatment Of Biological Assets  

The accounting treatment differs for various assets, such as IAS 16 for Property Plant and Equipment, IAS 2 for inventories, and IAS 41 for biological assets based on agriculture. After all, such assets are considered inventories for an agri-based company.

“Harvest” is an important term, as IAS 41 recognizes the final products of agri-based companies by defining them as “the harvested products of the entity’s biological assets.”

Harvested products can either be a plant or a living animal (livestock). These products are only recognized when they meet the criteria set by the IAS 41. The assets are only recognized if the asset 

• Can generate future economic benefits.
• Can be reliably measured for its cost or fair value by the entity.
• Is controlled by the entity. 

When the above criteria are met, the entity can conduct an initial measurement at a fair value less than the estimated selling cost of the biological asset. To maintain accuracy, the entity should gauge the assets’ value at each reporting date. 

Biological assets are those organic assets that agro-based companies/individuals utilize to produce agricultural-based products.

Biological assets can be different depending on the agricultural products themselves. Generally, some biological assets are poultry, fishery, crops, and dairy.

Finished biological assets such as dairy and crops are considered as an inventory for the agro-based industry.

The International Accounting Standards Board (IASB) issues standards that help the recording processes be consistent and accurate; the same goes for agriculture companies. Therefore, IASB issued the  International Accounting Standard (IAS) 41  to deal with biological assets.

Biological assets are organic assets that diminish in quality over time due to various factors such as aging and damage. Thus, biological assets depreciate over time.

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Biological Assets: Financial Recognition and Reporting Using US and International Accounting Guidance

2013, Journal of Accounting and Finance

Related Papers

Levan Sabauri

Monica Ocnean

During its existence, International Standards of Accounting and Financial Reporting have been focused on developing and implementing existing standards on financial reporting in general. From a historical point of view, agricultural activities have received too little attention from world norms of international accounting standards.In the past, the lack of generalization by the king in dealing with this subject was compensated only by the fact that a large part of the agricultural activities were represented by family businesses, which had very few outside owners, who could ask for financial information prepared according to the generally recognized accounting principles. Agriculture should primarily be defined as managing the biological transformation of plants and animals to produce a result for being consumed or for further processing.

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis

Patrik Svoboda

The aim of the paper is the evaluation of appropriateness of different ways for the measurement and reporting of different groups of biological assets. There are two possible ways of their measurement – cost and fair value. The substance of all kinds of biological assets differs significantly, especially for plants and animals. The single way for measurement of all kinds of biological assets is not satisfactory. The most significant difference is observable between bearer plants and biological assets in the form of living animals. The authors took into account a majority of factors influencing quality of individual ways of measurement, and evaluated the application of the above‑mentioned methods for representatives of both kinds of biological assets (apple orchard and dairy cows). The results of the study proved that the historical cost is the suitable way of bearer plants measurement, while the fair value measurement is more suitable for measurement of living animals.

International Journal of Financial, Accounting, and Management

Marilene van Biljon

Purpose: Establish whether the industry biological asset fair valuing challenges are country-specific or agricultural-sector specific. Determine how the inputs and challenges experienced by the valuers relate to the industry challenges. Research Methodology: Descriptive, qualitative conceptual content analysis of financial reports of 50 listed organizations across 10 countries from 2012 to 2015; with relational content analysis through in-person interviews with 24 biological asset valuers. Results: This paper contradicts prior research as no correlation was identified between large agricultural organizations and the extent of biological asset disclosures. The biological asset valuation and disclosure challenges are not country-specific or agricultural-sector-specific and the inconsistency in factors applied by the valuers appears to impact the industry challenges directly. Limitations: As biological assets are only held by agricultural organizations of which not all fair value the a...

Entrepreneurship and Sustainability Issues

Iluta Arbidāne

Jurnal Akuntansi

Nikmah Nikmah

The agricultural sector is a sector that plays an important role ini the Indonesian economy because Indonesia is an agriculture country. In agriculture companies, biological asset are part of the company’s assets. This study examines the effect of biological asset intensity and profitability on the disclosure of biological assets of agriculture companies. This study was tested using multiple regression analysis. The sample used in this study is agricultural companies listed on the Indonesia Stock Exchange in 2018-2020. The data in this study is obtained from secondary source i.e. www.idx.com. The results of this study show the intensity of biological assets has a positive effect on the disclosure of biological assets and profitability does not have a positive effect on the disclosure of biological assets.

Hradec Economic Days

Bazhan Turebekova

Mateja Brozović

There are many areas of accounting estimates when valuating biological assets under IAS 41 –Agriculture. Before the amendments to the standard in 2014, companies were required to measure all biological assets at fair value, which caused certain practical issues, especially when there was no active market. Previous research has shown that a significant number of companies applied the cost model as a result of not being able to estimate fair value reliably.Moreover there was general impression that the costs of measuring biological assets at fair value were higher than the benefits. Therefore, the IASB introduced changes to the standards related to biological assets, allowing companies to choose between the cost and the revaluation model, but limiting the scope to only bearer plants.. The aim of this paper is to analyze the practical challenges of applying IAS 41 before and after the revision of this standard. An empirical research was conducted in order to assess how these changes wi...

Procedia - Social and Behavioral Sciences Volume 164, 31 December 2014, Pages 68–75

Aji D E D I Mulawarman

This paper is an in-depth review of IAS 41 from two dimensions, technical-theoretical dimension and meaning dimension simultaneously. The study aimed to anticipate the hazardous potentialities in valuation caused by monetary logo-centrism in accounting. The concepts offered are based on the condition of the existing culture in Indonesian society that was abstracted through ethnomethodology. These concepts represent Indonesian farmers’ viewpoints and ways of life in that are also closely related with agriculture utilities cycle. This paper suggests that agriculture accounting can be carried out even if it does not use monetary unit as its valuation approach.

South African Journal of Economics and Management Sciences

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What are Biological Assets? Recognition and Measurement

Biological assets are assets that are living in nature. It includes trees, animals, and nowadays cannabis too, as it has been made legal. The company’s management breaks down the assets side of the balance sheet and classifies them by type and attributing a value to them.

Biological assets are dealt with in International Accounting standards 41 (IAS 41). As per IAS 41, biological assets are any living plant or animal owned by the business. These are typically measured at fair values less selling costs.

Examples of biological assets include goats, fish, vegetables, corn, tomatoes, apples, etc. Biological assets are generally perishable and are like current assets in the balance sheet .

Nature of Biological assets:

Biological assets are held and can be accounted for only by the business owners. These assets are important to farmers and individuals whose primary source of profit comes from growing, selling, and shipping biological goods.

They are the active components in the environment; hence, they are always difficult to maintain. They are always under the radar of qualitative and quantitative threats.

Importance of Biological Assets:

Biological assets generate substantial revenue or income for businesses in vineyards, floriculture, silviculture, and paper products.

Biological assets are typically seen in the balance sheet of these companies in industries. The only distinguishing feature of biological assets is that it is a living thing.

The major difference of biological assets is that biological assets change naturally and depreciate naturally and more rapidly than other types of goods.

Various biological assets like other goods can be in high or low demand depending on the season of the product. Recently there has been a surge in demand for cannabis as it has been made legal in the United States of America.

The threats suffered by biological assets include drought, cold weather, inconsistent rain, or forms of diseases. The biological asset is unique to accounting to categorize and identify assets owned by businesses.

Recognition of Biological assets as per IFRS:

An entity recognizes a biological asset when the entity controls the asset as a result of past events. It is fairly reliable to say that benefit will flow to the entity, and fair value can be measured reliably.

Measurement of Biological asset:

Biological assets come within the scope of IAS 41. Initial recognition is done, and at subsequent reporting dates, the biological assets are recognized at fair value less estimated costs to sell, unless a fair value cannot be reliably estimated.

The gain on initial recognition of biological assets at fair value fewer costs to sell and changes in fair value fewer costs to selling biological assets during a period are included in profit or loss.

All other costs related to biological assets measured at fair value are recognized as expenses when incurred, other than costs to purchase biological assets. 

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What Are Biological Assets and How to Account for Them?

Companies require assets to generate revenues. These include resources owned or controlled by a company that results in inflows of economic benefits.

In accounting, these inflows may occur through the asset’s value or use. These resources are crucial in helping companies continue their operations.

The assets companies use may differ based on their needs and activities.

Some companies’ most prevalent types of assets include fixed assets , inventories, and cash. These assets help companies with short- and long-term needs.

On top of that, they appear on almost every company’s balance sheet. The accounting for the above types is also straightforward.

Each of these falls under a different accounting standard which dictates their accounting treatment.

On top of these, companies may also own or control other assets. For example, these may include intangible assets, such as software or patents.

Some companies may also operate biological assets that can help generate revenues. However, the accounting treatment of these assets differs from others due to a specific accounting standard.

Before understanding that, however, it is crucial to study biological assets.

What are Biological Assets?

Biological assets are resources that are living. Usually, these include plants and animals that companies own or control.

Like other resources, biological assets are crucial in generating revenues. In most cases, companies obtain products from these assets.

Then, they may process those products to make them available for sale in the market. Therefore, these assets are essentially the same as other resources.

Biological assets include sentient beings that companies use for their products. For example, companies may obtain dairy products through milk produced by cows and other animals.

In this case, those animals constitute biological assets. Some people may also consider employees to be a part of those assets. However, they do not meet the criteria for the biological asset classification.

For most companies, biological assets may not exist at all. Usually, these companies benefit from other resources, including property, plants, and equipment.

However, some companies’ biological assets constitute a significant portion of overall resources. These companies rely on those assets to generate income and create revenue streams. Therefore, they must recognize them as similar to other fixed assets.

Biological assets are similar to other assets in several regards. For example, they help generate revenues or have value.

However, they can also be significantly different. For instance, these assets depreciate naturally and have a finite lifespan.

On top of that, these assets do not always produce guaranteed results. In that regard, biological assets are more unpredictable than other resources.

Overall, biological assets include living things that help generate revenues. For some companies, these assets are highly crucial in making profits. These assets are similar to other resources in various regards.

However, they also differ significantly. Sometimes, biological assets require higher maintenance expenses than other fixed assets. Nonetheless, they constitute resources that companies own or control.

What is the Accounting for Biological Assets?

The accounting for biological assets differs from other resources. Other resources have specific standards that dictate their accounting treatment.

For example, IAS 16 applies to all property, plants, and equipment, while IAS 2 is for inventories. Likewise, biological assets fall under the scope of IAS 41 Agriculture. Although the name may suggest it only relates to agricultural transactions, it covers biological assets.

IAS 41 defines biological assets as “a living plant or animal”. The accounting for biological asses differs from other assets due to the harvested product.

Usually, this product comes from the living plant or animal directly and falls under agricultural produce. IAS 41 defines agricultural produce as “the harvested product of the entity’s biological asset”.

Furthermore, IAS 41 elaborates on the definition of harvest. It defines the term as “the detachment of produce from a biological asset or the cessation of a biological asset’s life processes”.

These definitions are crucial in allowing companies to differentiate the accounting process. Furthermore, the accounting for biological assets falls into several steps.

IAS 41 defines the recognition criteria for assets. It requires companies to record a biological asset only if it meets the following criteria.

• The asset will generate future economic benefits that will flow to the entity.
• The entity can reliably measure the cost or fair value of the biological asset.
• The entity controls the asset.

If a biological asset meets the above criteria, companies can recognize it. The initial measurement occurs at the fair value less estimated costs to sell. Usually, this process results in some gains or losses in the profit or loss statement.

Any subsequent measurements occur at the same amount. However, companies must gauge the asset’s value at each reporting date.

What Are the Journal Entries for Biological Assets?

The journal entries for biological assets occur during two stages. The first includes when companies acquire or obtain those assets. Based on IAS 41 P10 to P12, companies must record or measure initially and subsequently biological assets at fair value less cost to sell those assets.

Consequently, they must also recognize any gains or losses resulting from the recognition. However, the asset must meet the recognition criteria set by IAS 41 as mentioned above.

If the company measures a loss, it will use the following journal entries.

If there is gain on the transaction, the accounting entries will be below.

Companies must measure the biological asset’s fair value less cost to sell on each reporting date. This process occurs after companies recognize it in the balance sheet.

During this measurement, companies calculate a gain or loss on the asset. Therefore, they must record it in the accounts accordingly.

The journal entries for loss-making biological assets on the subsequent measurement will be below.

For biological assets making gains, the accounting entries will be as below.

A company, ABC Co., sells Woollen clothing items. For that, it needs sheep to gather the wool. ABC Co. acquires 200 1-year-old sheep during an accounting period.

The cost per unit purchased is $100. On top of that, the company also pays transportation costs of $5 per sheep.

ABC Co. pays a total of $21,000 for the transaction. It includes $20,000 fair value (200 sheep x $100 per unit).

Similarly, it contains $1,000 in transportation expenses (200 sheep x $5 per unit.

ABC Co. must recognize these biological assets at a fair value less cost to sell. In this case, the fair value of the sheep is $20,000.

On the other hand, the selling expense is $1,000. Therefore, the fair value less the cost to sell will be $19,000. ABC Co. will record the transaction as below.

Subsequently, ABC Co. remeasures the fair value less cost to sell these sheep. The company obtains the fair value for 2-year-old sheep to be $120 per unit.

Similarly, the transportation costs to sell these sheep have remained unchanged at $5. Based on the above numbers, the fair value for the sheep will be $24,000 (200 sheep x $120 per unit). The cost to sell will be $1,000.

The company remeasures the fair value less cost to sell to be $23,000. Initially, ABC Co. recognized the sheep at $19,000.

However, the subsequent measurement resulted in a $4,000 gain. ABC Co. will record it as follows.

A biological asset is a living plant or animal controlled by a company. The accounting for biological assets includes two stages. When companies acquire this asset, they must record it at a fair value less cost to sell.

At each reporting date, subsequently, companies must remeasure this value. For both stages, companies must also record any gains or losses.

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Basis for IASC's Conclusions on IAS 41 Agriculture

This Basis for Conclusions accompanies, but is not part of, IAS 41. It was prepared by the IASC Staff in 2000 but was not approved by the IASC Board. It summarises the Board’s reasons for:

Individual Board members gave greater weight to some factors than to others.

This Basis has not been revised by the IASB and the terminology has not been amended to reflect the changes made by Improvements to IFRSs issued in May 2008.

The need for an International Accounting Standard on agriculture

accounting guidelines for agricultural activity developed by national standard setters have, in general, been piecemeal, developed to resolve a specific issue related to a form of agricultural activity of significance to that country; and

the nature of agricultural activity creates uncertainty or conflicts when applying traditional accounting models, particularly because the critical events associated with biological transformation (growth, degeneration, production, and procreation) that alter the substance of biological assets are difficult to deal with in an accounting model based on historical cost and realisation.

Measurement

Biological assets, fair value versus cost.

Some commentators on E65 suggested that the Standard should include a reliability exception for cases where no active market exists.

Treatment of point‑of‑sale costs

Hierarchy in fair value measurement 7, frequency of fair value measurement, independent valuation, inability to measure fair value reliably, gains and losses, agricultural produce, sales contracts, land related to agricultural activity, intangible assets, subsequent expenditure, government grants.

IAS 20  also requires that government grants should be recognised as income over the periods necessary to match them with the related costs that they are intended to compensate, on a systematic basis. In relation to the presentation of government grants related to assets,  IAS 20  permits two methods—setting up a government grant as deferred income or deducting the government grant from the carrying amount of the asset.

Separate disclosure of physical and price changes

Disaggregation of the gain or loss, other disclosures, summary of changes to e65.

The Board did not include these encouragements in the Standard. The Board noted that  IAS 1  and  IAS 38  apply to entities that undertake agricultural activity, as well as to those in other activities.

New disclosure requirements include disclosing the:

E65 proposed disclosing the:

The Standard does not include the above disclosures.

The amendment to  IAS 17   Leases  now clarifies that  IAS 17  should not be applied to the measurement by:

Biological assets held under finance leases and those leased out under operating leases are measured under the Standard rather than IAS 17. A lease of a biological asset is classified as a finance lease or operating lease under IAS 17. If a lease is classified as a finance lease, the lessee recognises the leased biological asset under IAS 17 and thereafter measures and presents it under the Standard. In that case, the lessee makes disclosures both under the Standard and IAS 17. A lessor of a biological asset under an operating lease measures and presents the biological asset under the Standard, and makes disclosures both under the Standard [ Refer: paragraphs 40⁠–⁠57 ] and IAS 17.

Board Approvals

Dissenting opinions, dissent of patrick finnegan and patricia mcconnell, the importance of fair value information for biological assets, effects of the use of fair value measurement, current proposals are not improvements to ifrs.

• Corbus Pharmaceuticals Holdings-stock
• News for Corbus Pharmaceuticals Holdings

Corbus Pharmaceuticals Reports First Quarter 2024 Financial Results and Provides Corporate Update

• Phase 1 data for CRB-701 (SYS6002) to be presented at ASCO Annual Meeting on June 1, 2024
• $116M of capital raised in Q1 2024 extending cash runway through Q1 2027
• Appointed Dr. Dominic Smethurst as Chief Medical Officer

NORWOOD, Mass., May 07, 2024 (GLOBE NEWSWIRE) -- Corbus Pharmaceuticals Holdings, Inc. (NASDAQ: CRBP) (“Corbus” or the “Company”), a precision oncology company with a diversified portfolio, today provided a corporate update and reported financial results for the quarter ended March 31, 2024.

“During the first quarter of 2024, we continued to make significant progress in advancing our pipeline toward meaningful milestones led by the dosing of the first patient in our U.S. Phase 1 clinical trial of CRB-701, our next-generation antibody drug conjugate targeting expression of Nectin-4,” said Yuval Cohen, Ph.D., Chief Executive Officer of Corbus. “The potential of CRB-701 was highlighted at ASCO GU in January 2024. The dose escalation data, presented by our development partner CSPC, demonstrated a differentiated safety and PK profile compared to enfortumab vedotin, as well as an emerging efficacy signal in both bladder and cervical cancer patients who are Nectin-4 positive. We look forward to CSPC’s presentation of updated data at the ASCO 2024 Annual Meeting. During the quarter, we also continued to advance CRB-913 for the treatment of obesity and expect to dose the first patient in Q1 2025. We strengthened our balance sheet by raising $116 million of capital in the quarter and bolstered our management team with the appointment of Dr. Dominic Smethurst as Chief Medical Officer. We look forward to continuing to advance our programs across our pipeline over the course of this year,” concluded Dr. Cohen.

Key Corporate and Program Updates:

CRB-701: CRB-701 (SYS6002) is a next-generation antibody drug conjugate targeting Nectin-4 that contains a site-specific, cleavable linker and a homogenous drug antibody ratio of 2 using MMAE as the payload. Nectin-4 is a clinically validated, tumor-associated antigen in urothelial cancer.

The first U.S. patient was dosed in the Phase 1 clinical trial of CRB-701-01 in April 2024. The Phase 1 portion of the open label study design (NCT06265727), being conducted in the U.S. and Europe, will evaluate the safety, efficacy and pharmacokinetics (“PK”) of CRB-701 in participants with advanced solid tumors associated with high Nectin-4 expression. The Phase 1 trial initiates with dose escalation followed by dose optimization and concludes with dose expansion to determine the recommended Phase 2 dose. The Company expects to present the U.S. dose escalation data by Q1 2025.

Encouraging safety and efficacy data from the Phase 1 dose escalation study in China for patients with Nectin-4 positive tumors was presented in January 2024 by our development partner CSPC at the 2 024 American Society of Clinical Oncology Genitourinary Cancers Symposium (“ASCO GU”) as a Poster Presentation .

Summary of data presented at ASCO GU:

• Q3W schedule of CRB-701 (SYS6002) demonstrated a 43% ORR and 71% DCR (n=7) at predicted therapeutically relevant doses (>=2.7mgs/kg).
• All assessable Nectin-4 positive study participants with mUC or cervical cancer treated at or above this dose demonstrated some level of disease control.
• No dose limiting toxicities were observed to date at doses up to 3.6 mg/kg with further escalation at 4.5 mg/kg ongoing.
• No cases of peripheral neuropathy or skin rash have been observed to date.

Updated data from this study will be presented by CSPC as a poster at the ASCO 2024 Annual Meeting on June 1, 2024.

CRB-913: CRB-913 is a second-generation, highly peripherally restricted CB1 receptor inverse agonist designed to treat obesity. In a diet-induced obesity ("DIO") mouse model, CRB-913, as a monotherapy and in combination with incretin analogues (tirzepatide, semaglutide, or liraglutide), demonstrates a reduction in body weight in DIO mice and improvements were observed in body fat content, leptinemia, insulin resistance, liver triglycerides, liver fat deposits, and liver histology. The Company is currently conducting IND-enabling studies and expects to dose the first patient in the Phase 1 study in Q1 2025.

CRB-601: CRB-601 is a high affinity and selective anti-αvβ8 monoclonal antibody that blocks the activation of TGFβ expressed on cancer cells in the tumor microenvironment. In pre-clinical models, CRB-601 demonstrates enhanced anti-tumor activity when combined with anti-PD-1 checkpoint inhibitor therapy compared to either single agent alone.

In January 2024, the FDA cleared the IND for CRB-601 and the Company expects to initiate a Phase 1 study of CRB-601 in the summer of 2024.

$116M of Capital Raised in Q1 2024 Immediately following the ASCO GU data, the Company completed a public offering raising $94.5 million of gross proceeds combined with an additional $21.1 million from ATM sales. The $116 million of additional capital extends the Company’s cash runway through Q1 2027.

Dr. Dominic Smethurst Appointed as Chief Medical Officer In February 2024, the Company appointed Dr. Dominic Smethurst, MA MRCP, as the Company’s Chief Medical Officer (“CMO”). He has over twenty years of experience working with pharmaceutical and biotechnology companies and most recently served as the CMO of Bicycle Therapeutics.

Financial Results for Quarter Ended March 31, 2024: The Company reported a net loss of approximately $6.9 million, or a net loss per diluted share of $0.83, for the three months ended March 31, 2024, compared to a net loss of approximately $17.7 million, or a net loss per diluted share of $4.24, for the same period in 2023.

Operating expenses decreased by $7.7 million to approximately $9.6 million for the three months ended March 31, 2024, compared to $17.3 million in the comparable period in the prior year. The decrease was primarily attributable to the upfront licensing fee of $7.5 million due to CSPC for licensing of CRB-701 recorded during the first quarter of 2023. In Q1 2024, the Company received $2.5 million refundable tax credit from a foreign tax authority that was recorded in Other Income, net.

As of March 31, 2024, the Company had $120.1 million of cash, cash equivalents and investments on hand, which is expected to fund operations through Q1 2027, based on the current planned expenditures.

About Corbus Corbus Pharmaceuticals Holdings, Inc. is a precision oncology company with a diversified portfolio and is committed to helping people defeat serious illness by bringing innovative scientific approaches to well-understood biological pathways. Corbus’ pipeline includes CRB-701, a next generation antibody drug conjugate that targets the expression of Nectin-4 on cancer cells to release a cytotoxic payload, CRB-601, an anti-integrin monoclonal antibody which blocks the activation of TGFβ expressed on cancer cells, and CRB-913, a highly peripherally restricted CB1 receptor inverse agonist for the treatment of obesity. Corbus is headquartered in Norwood, Massachusetts. For more information on Corbus, visit corbuspharma.com. Connect with us on Twitter, LinkedIn and Facebook.

Forward-Looking Statements This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and Private Securities Litigation Reform Act, as amended, including those relating to the Company's trial results, product development, clinical and regulatory timelines, market opportunity, competitive position, possible or assumed future results of operations, business strategies, potential growth opportunities and other statement that are predictive in nature. These forward-looking statements are based on current expectations, estimates, forecasts and projections about the industry and markets in which we operate and management's current beliefs and assumptions.

These statements may be identified by the use of forward-looking expressions, including, but not limited to, "expect," "anticipate," "intend," "plan," "believe," "estimate," "potential,” "predict," "project," "should," "would" and similar expressions and the negatives of those terms. These statements relate to future events or our financial performance and involve known and unknown risks, uncertainties, and other factors on our operations, clinical development plans and timelines, which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include those set forth in the Company's filings with the Securities and Exchange Commission. Prospective investors are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

All product names, logos, brands and company names are trademarks or registered trademarks of their respective owners. Their use does not imply affiliation or endorsement by these companies.

INVESTOR CONTACTS:

Sean Moran Chief Financial Officer [email protected]

Bruce Mackle Managing Director LifeSci Advisors, LLC [email protected]

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