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Reporting entity

1. Reporting entity

Auris Medical Holding AG, previously named Auris NewCo Holding AG, (the “Company” or “Auris NewCo”) is a corporation (Aktiengesellschaft) organized in accordance with Swiss law and domiciled in Switzerland and was established on March 13, 2018. On March 13, 2018, Auris NewCo Holding AG merged (the “Merger”) with Auris Medical Holding AG (“Auris OldCo”), a corporation (Aktiengesellschaft) organized in accordance with Swiss law and domiciled in Switzerland. The Merger took place following Auris OldCo shareholder approval at an extraordinary general meeting of shareholders held on March 12, 2018. Auris NewCo Holding AG changed its name to Auris Medical Holding AG following consummation of the Merger. Following the Merger, the Company had a share capital of CHF 122,347.76, divided into 6,117,388 common shares with a nominal value of CHF 0.02 each. Pursuant to the Merger, the Auris OldCo’s shareholders received one common share with a nominal value of CHF 0.02 of the Company for every 10 of our common shares held prior to the Merger, effectively resulting in a “reverse stock split” at a ratio of 10-for-1. On March 14, 2018 the common shares of Auris NewCo began trading on the Nasdaq Capital Market under the trading symbol “EARS”.

The Company’s registered address is Bahnhofstrasse 21, 6300 Zug. These condensed consolidated interim financial statements comprise the Company and its subsidiaries (together referred to as the “Group” and individually as “Group entities”). These condensed consolidated interim financial statements also include financial information of Auris OldCo prior to the Merger as discussed below. The Company is the ultimate parent of the following Group entities:

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Auris Medical AG, Basel, Switzerland (100%) with a nominal share capital of CHF 2,500,000

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Otolanum AG, Zug, Switzerland (100%) with a nominal share capital of CHF 100,000

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Auris Medical Inc., Chicago, United States (100%) with a nominal share capital of USD 15,000

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Auris Medical Ltd., Dublin, Ireland (100%) with a nominal share capital of EUR 100

The Group is primarily involved in the development of novel products that address important unmet medical needs in neurotology and mental health supportive care. The Group is primarily focusing on the development of intranasal betahistine for the treatment of vertigo (AM-125) and for the treatment of antipsychotic-induced weight gain and somnolence (AM-201). These projects have gone through two Phase 1 trials and the Company expects to move into proof-of-concept studies in 2019.

1. Reporting entity

Auris Medical Holding AG (the “Company”) is a corporation (Aktiengesellschaft) organized in accordance with Swiss law and domiciled in Switzerland. The Company’s registered address is Bahnhofstrasse 21, 6300 Zug. These consolidated financial statements comprise the Company and its subsidiaries (together referred to as the “Group” and individually as “Group entities”). The Company is the ultimate parent of the following Group entities:

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Auris Medical AG, Basel, Switzerland (100%) with a nominal share capital of CHF 2,500,000

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Otolanum AG, Zug, Switzerland (100%) with a nominal share capital of CHF 100,000

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Auris Medical Inc., Chicago, United States (100%) with a nominal share capital of USD 15,000

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Auris Medical Ltd., Dublin, Ireland (100%) with a nominal share capital of EUR 100

On April 22, 2014, the Company changed its name from Auris Medical AG to Auris Medical Holding AG. On May 21, 2014 the domicile of Auris Medical Holding AG was transferred from Basel to Zug. On March 13, 2018, the Company merged (the “Merger”) into Auris Medical NewCo Holding AG (“Auris NewCo”), a newly incorporated, wholly-owned Swiss subsidiary following shareholder approval at an extraordinary general meeting of shareholders held on March 12, 2018. Following the Merger, Auris NewCo, the surviving company, had a share capital of CHF 122,347.76, divided into 6,117,388 common shares with a nominal value of CHF 0.02 each. Pursuant to the Merger, the Company’s shareholders received one common share with a nominal value of CHF 0.02 of Auris NewCo for every 10 of our common shares held prior to the Merger, effectively resulting in a “reverse stock split” at a ratio of 10-for-1. Auris NewCo changed its name to “Auris Medical Holding AG” following consummation of the Merger. On March 14, 2018 the common shares of Auris NewCo began trading on the Nasdaq Capital Market under the trading symbol “EARS.”

The Group is primarily involved in the development of pharmaceutical products for the treatment of inner ear and vestibular disorders, in particular tinnitus and hearing loss. Its most advanced projects are in the late stage of clinical development.

Basis of Preparation

9 Months Ended

12 Months Ended

Sep. 30, 2018

Dec. 31, 2017

Basis of preparation [Abstract]

Basis of preparation

2. Basis of preparation

Statement of compliance

These condensed consolidated interim financial statements as of September 30, 2018 and December 31, 2017 and for the three and nine months ended September 30, 2018 have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting (“IAS 34”) and should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2017.

These condensed consolidated interim financial statements include all adjustments that are necessary to fairly state the results of the interim period. The Group believes that the disclosures are adequate to make the information presented not misleading. Interim results are not necessarily indicative of results to be expected for the full year. Management does not consider the business to be seasonal or cyclical.

Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board, have been condensed or omitted as permitted by IAS 34. The condensed consolidated statement of financial position as of December 31, 2017 was derived from the audited consolidated financial statements.

The interim condensed consolidated financial statements were authorized for issuance by the Company’s Audit Committee on November 13, 2018.

Functional and reporting currency

These interim condensed consolidated financial statements are presented in Swiss Francs (“CHF”), which is the Company’s functional currency (“functional currency”) and the Group’s reporting currency.

Considering reorganization/Merger

The Merger is not a business combination and is accounted for as a reorganization. Therefore, the condensed consolidated interim financial statements of the Company are a continuation of the financial information of Auris OldCo except that the condensed consolidated interim financial statements reflect a reclassification between share capital and share premium in order to reflect the share capital of Auris NewCo. For the periods prior to the Merger, in calculating loss per share, the weighted average number of shares outstanding is calculated based on the number of weighted average shares issued by Auris OldCo, adjusted for the reverse stock split ratio of 10-for-1.

Related Party Transaction

On February 9, 2018, Thomas Meyer, our Chief Executive Officer, entered into a share transfer agreement with the Company to facilitate the rounding up of fractional shares resulting from the exchange ratio used in the Merger. Pursuant to the terms of the share transfer agreement, Mr. Meyer committed to transfer, at no consideration, a common share to any shareholder entitled to a fraction of a common share as part of the Merger. Pursuant to the share transfer agreement, neither the Company nor Mr. Meyer received any compensation for this arrangement. Any expenses incurred by Mr. Meyer in connection with the transfers under such agreement were borne by the Company.

Significant accounting policies

The accounting policies applied by the Group in these condensed consolidated interim financial statements are the same as those applied by the Group in its audited consolidated financial statements as of and for the year ended December 31, 2017 and have been applied consistently to all periods presented in these condensed consolidated interim financial statements, unless otherwise indicated.

New standards, amendments and interpretations adopted by the Group

The Group has not early adopted any standard, interpretation or amendment that was issued, but is not yet effective.

A number of new standards, amendments to standards and interpretations are effective for the Group’s 2018 reporting year. The application of these new standards, amendments to standards and interpretations does not have material impact on the financial statements of the Group.

Asset Purchase

On April 24, 2018, one of our subsidiaries entered into an agreement to purchase patents related to compositions for weight management and methods of reducing weight gain associated with olanzapine treatment.

2. Basis of preparation

Statement of compliance

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”).

These consolidated financial statements were approved by the Board of Directors of the Company on March 20, 2018.

Basis of measurement

The consolidated financial statements are prepared on the historical cost basis, except for the revaluation to fair value of certain financial liabilities. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. The principal accounting policies adopted are set out below.

In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

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Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date

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Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

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Level 3 inputs are unobservable inputs for the asset or liability.

Functional and reporting currency

These consolidated financial statements are presented in Swiss Francs (“CHF”), which is the Company’s functional (“functional currency”) and the Group’s reporting currency.

Use of estimates and judgments

The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions of accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

Information about judgments made in applying accounting policies that have the most significant effects on the amounts recognized in the consolidated financial statements are described below.

Income taxes

As disclosed in Note 20 the Group has significant tax losses in Switzerland. These tax losses represent potential value to the Group to the extent that the Group is able to create taxable profits in Switzerland prior to expiry of such losses. Tax losses may be used within 7 years from the year the losses arose.

The Group also has tax losses in the United States which may be used within 20 years of the end of the year in which losses arose, or for a shorter time period in accordance with prevailing state law.

Other than a tax asset in the amount of CHF 217,720, the Group has not recorded any deferred tax assets in relation to these tax losses. The key factors which have influenced management in arriving at this evaluation are the fact that the business is still in a development phase and the Group has not yet a history of making profits. Should management’s assessment of the likelihood of future taxable profits change, a deferred tax asset will be recorded. Income tax gain reflects the reassessment of deferred tax assets and liabilities booked in the 2017 fiscal year.

Development expenditures

The project stage forms the basis for the decision as to whether costs incurred for the Group’s development projects can be capitalized. Generally clinical development expenditures are not capitalized until the Group obtains regulatory approval (i.e. approval to commercially use the product), as this is considered to be essentially the first point in time where it becomes probable that future revenues can be generated. Given the current stage of the Group’s development projects, no development expenditures have yet been capitalized. The Group has capitalized certain milestone payments with regard to license payments.

As of each reporting date, the Group estimates the level of service performed by the vendors and the associated costs incurred for the services performed. As part of the process of preparing the Group’s financial statements, the Group is required to estimate its accrued expenses. This process involves reviewing contracts, identifying services that have been performed on the Group’s behalf and estimating the level of service performed and the associated cost incurred for the service when it has not yet been invoiced or otherwise notified of the actual cost.

Employee benefits

The Group maintains a pension plan for all employees in Switzerland through payments to a legally independent collective foundation. This pension plan qualifies under IFRS as defined benefit pension plan.

The Group’s net obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods, discounting that amount and deducting the fair value of any plan assets. The Company makes relevant actuarial assumptions with regard to the discount rate, future salary increases and life expectancy.

Significant Accounting Policies

12 Months Ended

Dec. 31, 2017

Significant accounting policies

3. Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements, unless otherwise indicated.

Basis of consolidation

Subsidiaries

Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases.

Transactions eliminated on consolidation

All inter-company balances, transactions and unrealized gains on transactions have been eliminated in consolidation. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Segment reporting

A segment is a distinguishable component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components.

The Chief Executive Officer is determined to be the Group’s Chief Operating Decision Maker (“CODM”). The CODM assesses the performance and allocates the resources of the Group as a whole, as all of the Group’s activities are focusing on the development of pharmaceutical products for the treatment of inner ear and vestibular disorders. Financial information is only available for the Group as a whole. Therefore, management considers there is only one operating segment under the requirements of IFRS 8, Operating Segments.

Foreign currency

Foreign currency transactions

Items included in the financial statements of Group entities are measured using the currency of the primary economic environment in which the entity operates. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in profit or loss. Non-monetary items that are measured based on historical cost in a foreign currency are not re-translated.

Foreign operations

Assets and liabilities of Group entities whose functional currency is other than CHF are included in the consolidation by translating the assets and liabilities into the reporting currency at the exchange rates applicable at the end of the reporting period. Income and expenses are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transaction).

These foreign currency translation differences are recognized in Other Comprehensive Loss and presented in the foreign currency translation reserve in equity. When a foreign operation is disposed of such that control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal.

Closing rates for the most significant foreign currencies relative to CHF:

Currency		Geographical area	Reporting entities		December 31, 2017		December 31, 2016		December 31, 2015
CHF	Swiss Franc	Switzerland		3		1.0000		1.0000		1.0000
USD	Dollar	United States		1		0.9725		1.0196		1.0014
EUR	Europe	Europe		1		1.1713		1.0723		1.0875

Average exchange rates for the year for the most significant foreign currencies relative to CHF:

Currency		Geographical area	Reporting entities		2017		2016		2015
CHF	Swiss Franc	Switzerland		3		1.0000		1.0000		1.0000
USD	Dollar	United States		1		0.9849		0.9855		0.9613
EUR	Europe	Europe		1		1.1116		1.0901		1.0659

Property and equipment

Property and equipment is measured at historical costs less accumulated depreciation and any accumulated impairment losses. Historical costs include expenditures that are directly attributable to the acquisition of the items. When parts of an item of tangible assets have different useful lives, they are accounted for as separate tangible asset items (major components). Depreciation is calculated on a straight-line basis over the expected useful life of the individual asset or the shorter remaining lease term for leasehold improvements. The applicable estimated useful lives are as follows:

Production equipment		5 years
Office furniture and electronic data processing equipment (“EDP”)		3 years
Leasehold improvements		5 years

Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. When an asset is reviewed for impairment, the asset’s carrying amount may be written down immediately to its recoverable amount, provided the asset’s carrying amount is greater than its estimated recoverable amount. Management assesses the recoverable amount by assessing the higher of its fair value less costs to sell or its value in use.

Cost and accumulated depreciation related to assets retired or otherwise disposed are removed from the accounts at the time of retirement or disposal and any resulting gain or loss is included in profit or loss in the period of disposition.

Intangible assets

Research and development

Expenditures on the Group’s research programs are not capitalized, they are expensed when incurred.

Expenditures on the Group’s development programs are generally not capitalized except if development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Group intends to and has sufficient resources to complete development and to use or sell the asset. For the development projects of the Group, these criteria are generally only met when regulatory approval for commercialization is obtained. Given the current stage of the development projects, no development expenditures (other than certain milestone payments) have been capitalized in 2014 and 2015. Intellectual property-related costs for patents are part of the expenditure for research and development projects. Therefore, registration costs for patents are expensed when incurred as long as the research and development project concerned does not meet the criteria for capitalization.

Licenses, intellectual property and data rights

Intellectual property rights that are acquired by the Group are capitalized as intangible assets if they are controlled by the Group, are separately identifiable and are expected to generate future economic benefits, even if uncertainty exists as to whether the research and development will ultimately result in a marketable product. Consequently, upfront and milestone payments to third parties for the exclusive use of pharmaceutical compounds in specified areas of treatment are recognized as intangible assets.

Measurement

Intangible assets acquired that have finite useful lives are measured at cost less accumulated amortization and any accumulated impairment losses.

Subsequent expenditure

Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognized in profit or loss as incurred.

Amortization

All licenses of the Group have finite lives. Amortization will commence once the Group’s intangible assets are available for use which will be the case after regulatory approvals are obtained and the related products are available for use. Amortization of licenses is calculated on a straight line basis over the period of the expected benefit or until the license expires, whichever is shorter. The estimated useful life is 10 years or the remaining term of patent protection. The Group assesses at each statement of financial position date whether intangible assets which are not yet ready for use are impaired.

Impairment of non-financial assets

Property and equipment and intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). An impairment loss is recognized as the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. Impairment losses are recognized in profit or loss. Assets that were previously impaired are reviewed for possible reversal of the impairment at each reporting date. Any increase in the carrying amount of an asset will be based on the depreciated historical costs had the initial impairment not been recognized.

Financial instruments

The Group classifies its financial assets in the following categories: loans and receivables and available-for-sale financial assets. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.

Recognition and derecognition of non-derivative financial assets and liabilities

The Group initially recognizes loans and receivables and debt securities issued on the date when they are originated. All other financial assets and financial liabilities are initially recognized on the trade date.

The Group derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred, or it neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control over the transferred asset. Any interest in such derecognized financial assets that is created or retained by the Group is recognized as a separate asset or liability.

The Group derecognizes a financial liability when its contractual obligations are discharged, cancelled, or expired.

Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Group has a legal right to offset the amounts and intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

Non-derivative financial assets and liabilities — measurement

Loans and receivable

These are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans and receivables are initially recognized at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at amortized cost using the effective interest method, less any impairment losses.

Cash and cash equivalents

The Group considers all short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value with original maturities of three months or less at the date of the purchase to be cash equivalents.

Non-derivative financial liabilities — measurement

Non-derivative financial liabilities are initially recognized at fair value less any directly attributable transaction costs. Subsequent to initial recognition, these liabilities are measured at amortized cost using the effective interest method.

Share capital

All shares of the Company are registered shares and classified as part of shareholders’ equity. Incremental costs directly attributable to the issue of the Company’s shares, net of any tax effects, are recognized as a deduction from equity. The warrants are classified as a financial liability at fair value through profit or loss and the cost allocated to the liability component will be immediately expensed to the income statement.

The Company has not paid any dividends since its inception and does not anticipate paying dividends in the foreseeable future.

Repurchase and reissue of ordinary shares (treasury shares)

When shares recognized as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, net of any tax effects, is recognized as a deduction from equity.

Repurchased shares are classified as treasury shares and are presented in the treasury share reserve. When treasury shares are sold or reissued subsequently, the amount received is recognized as an increase in equity and the resulting surplus or deficit (calculated as the difference between initial cost and fair value) on the transaction is presented within share premium.

Impairment of non-derivative financial assets

Financial assets are assessed at each reporting date to determine whether there is objective evidence of impairment.

Objective evidence that financial assets are impaired includes:

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default or delinquency by a debtor;

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indications that a debtor or issuer will enter bankruptcy;

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adverse changes in the payment status of borrowers or issuers;

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the disappearance of an active market for a security; or

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observable data indicating that there is measurable decrease in expected cash flows from a group of financial assets.

Financial assets measured at amortized cost

The Group considers evidence of impairment for these assets at an individual asset level. An impairment loss is calculated as the difference between an asset’s carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. Losses are recognized in profit or loss and reflected in an allowance account. When the Group considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, then the previously recognized impairment loss is reversed through profit or loss.

Derivative Financial Instruments

Derivative financial instruments are accounted at fair value and changes in fair value are shown as profit or loss. The fair value calculation of the derivative financial instruments is based on the Black-Scholes option pricing model. Assumptions are made for volatility and the risk free rate in order to estimate the fair value of the instrument. Transaction cost related to derivative financial instruments are recorded through profit and loss.

Income tax

Income tax expense comprises current and deferred tax. It is recognized in profit or loss except to the extent that it relates to a business combination, or items recognized directly in equity or in Other Comprehensive Income.

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to tax payable or receivable in respect of previous years. It is measured using tax rates enacted or substantively enacted at the reporting date.

Deferred tax

Deferred income tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred tax is not recognized for:

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temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss;

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temporary differences related to investments in subsidiaries to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

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taxable temporary differences arising on the initial recognition of goodwill.

Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.

Deferred income tax assets are recognized to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off tax assets against tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its tax assets and liabilities on a net basis.

Employee benefits

The recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. In order to calculate the present value of economic benefits, consideration is given to any minimum funding requirements.

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in Other Comprehensive Income. Past service costs, including curtailment gains or losses, are recognized immediately in general and administrative expenses within the operating results. Settlement gains or losses are recognized in general and administrative expenses within the operating results. The Group determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period or in case of any significant events between measurement dates to the then-net defined benefit liability (asset), taking into account any changes in the net defined benefit liability (asset) during the period as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.

Share-based compensation

The Company maintains various share-based payment plans in the form of stock option plans for its employees, members of the Board of Directors as well as key service providers. Stock options are granted at the Board’s discretion without any contractual or recurring obligations.

The share-based compensation plans qualify as equity settled plans. The grant-date fair value of share-based payment awards granted to employees is recognized as an expense, with a corresponding increase in equity, over the period that the employees become unconditionally entitled to the awards. The vesting of share options is conditional on the employee completing a period of service of three and four years respectively, from the grant date, in accordance with Stock Option Plans A and C. Under the Auris

Medical Holding AG Long Term Equity Incentive Plan (the “Equity Incentive Plan” or “EIP”), 50% of granted share options granted to employees vest after a period of service of two years from the grant date and the remaining 50% vest after a period of service of three years from the grant date. Share options granted to members of the Board of Directors in 2017, 2016 and in 2015 vest after a period of one year after the grant date. Stock Option Plan B was created to provide shares for share based compensation plans; it was used in the years 2008, 2009 and 2014 and has been abolished in 2015.

The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognized as an expense is based on the number of awards that meet the related service and non-market performance conditions at the vesting date. Share-based payments that are not subject to any further conditions are expensed immediately at grant date. In the year the options are exercised the proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium.

Valuation of share options

Following the completion of our initial public offering, option pricing and values are determined based on the Black Scholes option pricing model and assumptions are made for inputs such as volatility of our stock and the risk free rate.

Provisions

Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, where it is more likely than not that an outflow of resources will be required to settle the obligation, and where a reliable estimate can be made of the amount of the obligation. Provisions are not recognized for future operating losses. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.

Leases

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss on a straight-line basis over the period of the lease.

Earnings/(loss) per share

Basic earnings/(loss) per share are calculated by dividing the net profit/(loss) attributable to owners of the Company by the weighted average number of shares outstanding during the period. Diluted earnings/(loss) per share are calculated by dividing the net profit/(loss) attributable to the owners of the Company by the weighted average number of shares outstanding during the period adjusted for the conversion of all dilutive potential ordinary shares.

New Standards, Amendments and Interpretations Adopted by the Group

12 Months Ended

Dec. 31, 2017

Accounting Policies, Accounting Estimates And Errors [Abstract]

New standards, amendments and interpretations adopted by the group

4. New standards, amendments and interpretations adopted by the group

In the current year, the following revised standards have been adopted in these financial statements. Adoption has not had a significant impact on the amounts reported in these financial statements but may impact the accounting for future transactions and arrangements.

IAS 7 amendments	Statement of Cash Flows, Disclosure Initiative

IAS 12 amendments	Income taxes, Recognition of Deferred Tax Assets for Unrealized Losses

A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after January 1, 2018, and have not been applied in preparing these consolidated financial statements.

Standard/Interpretation		Impact	Effective date	Planned application by the Group
New standards, interpretations or amendments
IFRS 9	Financial instruments	(2)	January 1, 2018	FY 2018
IFRS 15	Revenue from Contracts with Customers and the related clarifications	(3)	January 1, 2018	FY 2018
IFRS 16	Leases	(4)	January 1, 2019	FY 2019
IFRS 2	Amendment to IFRS 2, Classification and Measurement of Share-based Payment Transaction	(1)	January 1, 2018	FY 2018
IFRS 1 / IAS 28	Amendment to IFRS 1 and IAS 28, Investment in Associates and Joint Ventures and First-time Adoption of International Reporting Standards	(1)	January 1, 2018	FY 2018
IAS 40	Amendment to IAS 40, Transfers of Investment Property	(1)	January 1, 2018	FY 2018
IFRIC 22	Foreign Currency Transactions and Advance Consideration	(1)	January 1, 2018	FY 2018

(1)

The impact on the consolidated financial statements of the Group cannot yet be determined with sufficient reliability.

(2)

IFRS 9, Financial Instruments

IFRS 9 introduces a single approach for the classification and measurement of financial assets according to their cash flow characteristics and the business model they are managed in, and provides a new impairment model based on expected credit losses. IFRS 9 also includes new regulations regarding the application of hedge accounting to better reflect an entity’s risk management activities especially with regard to managing non-financial risks. The Group plans to adopt the new standard on the required effective date and will not restate comparative information. During 2017, the Group has performed an impact assessment of all three aspects of IFRS 9. This assessment is based on currently available information and may be subject to changes arising from further reasonable and supportable information being made available to the Group in 2018 when the Group will adopt IFRS 9. The Group does not expect a significant impact on its balance sheet or equity on applying the classification and measurement requirements of IFRS 9. Further, the Group does not apply hedge accounting. IFRS 9 requires the Group to record expected credit losses on all of its loans and trade receivables, either on a 12-month or lifetime basis. The Group will apply the simplified approach and record lifetime expected losses. Due to the nature of its receivables, the Group does not expect a significant impact on its balance sheet or equity on applying the impairment model under the IFRS 9 standard.

(3)

IFRS 15, Revenue from Contracts with Customers

According to the new standard, revenue is recognized to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Revenue is recognized when, or as, the customer obtains control of the goods or services. The new revenue standard will supersede all current revenue recognition requirements under IFRS. The Group is focused on the development of pharmaceutical products for the treatment of inner ear disorders. As a clinical stage company it currently has no revenue from contracts with customers. The adoption of IFRS 15 is not expected to have any impact on the Group’s revenue and profit or loss.

(4)

IFRS 16, Leases

The new standard eliminates the current classification model for lessee’s lease contracts as either operating or finance leases and, instead, introduces a single lessee accounting model requiring lessees to recognize right-of-use assets and lease liabilities for leases with a term of more than twelve months. This brings the previous off-balance leases on the balance sheet in a manner largely comparable to current finance lease accounting. A lessee can choose to apply the standard using either a full retrospective or a modified retrospective approach. Adoption of IFRS 16 will result in the Group recognizing right of use assets and lease liabilities for all contracts that are, or contain, a lease. For leases currently classified as operating leases, under current accounting requirements the Group does not recognize related assets or liabilities, and instead spreads the lease payments on a straight-line basis over the lease term, disclosing in its annual financial statements the operating lease commitment. The Group is expecting that current leasing arrangements relating to office space will be capitalized under IFRS 16. In 2018, the Group will continue to assess the potential effect of IFRS 16 on its consolidated financial statements.

Financial Instruments and Risk Management

12 Months Ended

Dec. 31, 2017

Financial Instruments and Risk Management/Loan and warrant [Abstract]

Financial instruments and risk management

5. Financial instruments and risk management

The following table shows the carrying amounts of financial assets and financial liabilities:

Financial assets
	December 31, 2017		December 31, 2016
Cash and cash equivalents		14,973,369		32,422,222
Loans and receivables
Other receivables		79,840		134,900
Total financial assets		15,053,209		32,557,122

Financial liabilities
At amortized cost
Trade and other payables		1,200,820		1,837,997
Accrued expenses		4,395,609		4,652,033
Loan		10,126,406		12,364,204
At fair value through profit and loss
Derivative financial instruments		1,836,763		117,132
Total financial liabilities		17,559,598		18,971,366

Fair values

The carrying amount of cash and cash equivalents, other receivables, trade and other payables and accrued expenses is a reasonable approximation of their fair value due to the short term nature of these instruments. In respect of the Company’s loan which has floating rates of interest, the fair value approximates carrying value.

Financial risk factors

The Group’s activities expose it to a variety of financial risks: market risk, credit risk, interest rate and liquidity risk. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group’s financial performance. Management identifies, evaluates and controls financial risks. No financial derivatives have been used in 2017 and 2016 to hedge risk exposures. The Group invests its available cash in instruments with the main objectives of preserving principal, meeting liquidity needs and minimizing foreign exchange risks. The Group allocates its liquid assets to first tier Swiss or international banks.

Liquidity risk

The Group’s principal source of liquidity is its cash reserves which are mainly obtained through the issuance of new shares. The Group has succeeded in raising capital to fund its development activities to date and has raised funds that will allow it to meet short term development expenditures. The Company will require regular capital injections to continue its development work, which may be dependent on meeting development milestones, technical results and/or commercial success. Management monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs. The ability of the Group to maintain adequate cash reserves to sustain its activities in the medium term is highly dependent on the Group’s ability to raise further funds. Consequently, the Group is exposed to continued liquidity risk.

The table below analyses the remaining contractual maturities of financial liabilities, including estimated interest payments as of December 31, 2017 and 2016. The amounts disclosed in the table are the undiscounted cash flows:

	Carrying amount		Less than 3 months		Between 3 months and 2 years		2 years and later		Total
December 31, 2017
Trade and other payables		1,200,820		1,200,820		—		—		1,200,820
Accrued expenses		4,395,609		4,395,609		—		—		4,395,609
Loan and borrowings		10,126,406		1,349,531		9,446,716		1,166,225		11,962,472
Derivative financial instruments		1,836,763		—		—		1,836,763		1,836,763
Total		17,559,598		6,945,960		9,446,716		3,002,988		19,395,664

	Carrying amount		Less than 3 months		Between 3 months and 2 years		2 years and later		Total
December 31, 2016
Trade and other payables		1,837,997		1,837,997		—		—		1,837,997
Accrued expenses		4,652,033		3,632,752		1,019,281		—		4,652,033
Loan and borrowings		12,364,204		311,013		8,725,772		6,834,249		15,871,034
Derivative financial instruments		117,132		—		—		117,132		117,132
Total		18,971,366		5,781,762		9,745,053		6,951,381		22,478,196

Fair value measurement

Financial assets / liabilities	Fair values as at
	December 31, 2017	December 31, 2016	Fair value hierarchy	Valuation technique(s) and key input(s)
Derivative financial liabilities	Liability 1,836,763	Liability 117,132	Level 2	Black-Scholes option pricing model The share price is determined by our NASDAQ quoted-price. The strike price and maturity are coming from the contract. The volatility assumption is driven by our historic quoted share price and the risk free rate is estimated based on observable yield curves at the end of each reporting period.

						Non-cash changes
	01.01.2017		Financing Cash Flows ¹⁾			Fair value revaluation			Other changes ²⁾			31.12.2017
Derivative financial instrument		117,132		5,091,817			(3,372,186	)		—			1,836,763
Loans		12,364,204		(2,087,076	)		—			(150,722	)		10,126,406
Total		12,481,336		3,004,741			(3,372,186	)		(150,722	)		11,963,169

¹⁾

The financing cash flows are from loan repayment and from issuance of new derivative

²⁾

Internal rate of return changes and fx-difference

Credit risk

Credit risk is managed on a Group basis. Credit risk arises from cash and cash equivalents and deposits with banks, as well as from other receivables. The Company’s policy is to invest funds in low risk investments including interest bearing deposits. Other receivables were current as of December 31, 2017 and December 31, 2016, not impaired and included only well-known counterparties.

The Group has been holding cash and cash equivalents in the Group’s principal operating currencies (CHF, USD and EUR) with international banks of high credit rating.

The Group’s maximum exposure to credit risk is represented by the carrying amount of each financial asset in the consolidated statement of financial position:

	December 31, 2017		December 31, 2016
Financial assets
Cash and cash equivalents		14,973,369		32,442,222
Other receivables		79,840		134,900
Total		15,053,209		32,577,122

As of December 31, 2017 and December 31, 2016 other receivables consisted of other non-current receivables from third party and deposits for rent.

Market risk

Currency risk

The Group operates internationally and is exposed to foreign exchange risk arising from various exposures, primarily with respect to US Dollar and Euro. Foreign exchange risk arises from future commercial transactions, recognized assets and liabilities and net investments in foreign operations. The summary of quantitative data about the exposure of the Group’s financial assets and liabilities to currency risk was as follows:

	2017						2016
	USD			EUR			USD			EUR
	(in CHF)
Cash and cash equivalent		13,901,698			116,942			31,124,874			444,075
Trade and other payables		(365,999	)		(426,050	)		(501,249	)		(847,892	)
Accrued expenses		(1,750,752	)		(1,692,946	)		(1,031,096	)		(2,964,552	)
Loan and borrowings		(10,126,406	)		—			(12,364,204	)		—
Derivative financial instruments		(1,836,763	)		—			(117,132	)		—
Net statement of financial position exposure-asset/(liability)		(178,222	)		(2,002,054	)		17,111,193			(3,368,369	)

As of December 31, 2017, a 5% increase or decrease in the USD/CHF exchange rate with all other variables held constant would have resulted in a CHF 8,662 (2016: CHF 872,443) increase or decrease in the net result. Also, a 5% increase or decrease in the EUR/CHF exchange rate with all other variables held constant would have resulted in a CHF 117,320 (2016: CHF 180,595) increase or decrease in the net result.

The Company has subsidiaries in the United States and Ireland, whose net assets are exposed to foreign currency translation risk. Due to the small size of the subsidiaries the translation risk is not significant.

Interest rate risk

On July 19, 2016, the Company entered into a Loan and Security Agreement for a secured term loan facility of up to $20.0 million with Hercules Capital, Inc. as administrative agent (“Hercules”) and the lenders party thereto. An initial tranche of $12.5 million was drawn on July 19, 2016, concurrently with the execution of the loan agreement. The loan matures on January 2, 2020 and bears interest at a minimum rate of 9.55% per annum, and is subject to the variability of the prime interest rate. The Company’s exposure to interest rates on financial assets and financial liabilities is resulting from loan and cash at banks. As of December 31, 2017 an increase or decrease in interest rates on financial obligations by 50 basis points with all other variables held constant would have resulted in a CHF 62,500 (2016: 28,276) increase or decrease in the net result.

Capital risk management

The Company and its subsidiaries are subject to capital maintenance requirements under local law in the country in which it operates. To ensure that statutory capital requirements are met, the Company monitors capital, at the entity level, on an interim basis as well as annually. From time to time the Company may take appropriate measures or propose capital increases to ensure the necessary capital remains intact.

Segment Information

12 Months Ended

Dec. 31, 2017

Operating Segments [Abstract]

Segment information

6. Segment information

Geographical information

The Group’s non-current assets by the Company’s country of domicile were as follows:

December 31,

2017

December 31,

2016

Switzerland

1,958,709

1,966,592

Total

1,958,709

1,966,592

Non-current assets exclude financial instruments.

Property and Equipment

12 Months Ended

Dec. 31, 2017

Property, plant and equipment [Abstract]

Property and equipment

7. Property and Equipment

	Production equipment			Office furniture and EDP			Leasehold improvements			Total
At cost
As of January 1, 2016		283,499			208,712			17,132			509,343
Additions		—			24,994			219,330			244,324
As of December 31, 2016		283,499			233,706			236,462			753,667
Additions		6,389			—			—			6,389
As of December 31, 2017		289,888			233,706			236,462			760,056
Accumulated depreciation
As of January 1, 2016		(127,629	)		(149,873	)		(9,271	)		(286,773	)
Charge for the year		(56,700	)		(33,837	)		(7,063	)		(97,600	)
As of December 31, 2016		(184,329	)		(183,710	)		(16,334	)		(384,373	)
Charge for the year		(53,594	)		(21,918	)		(47,272	)		(122,784	)
As of December 31, 2017		(237,923	)		(205,628	)		(63,606	)		(507,157	)
Net book value
As of December 31, 2016		99,170			49,996			220,128			369,294
As of December 31, 2017		51,965			28,078			172,856			252,899

As of December 31, 2017, and 2016 no items of property and equipment were pledged. Refer to note 24 for security provided to Hercules Capital, Inc under the Loan and Security Agreement.

Intangible Assets

12 Months Ended

Dec. 31, 2017

Intangible Assets [Abstract]

Intangible assets

8. Intangible assets

	Licenses		IP & Data rights		Total
At cost
As of January 1, 2016		1,482,520		—		1,482,520
As of December 31, 2016		1,482,520		—		1,482,520
As of December 31, 2017		1,482,520		146,580		1,629,100
Accumulated amortization and impairment losses
As of December 31, 2016		—		—		—
As of December 31, 2017		—		—		—
Net book value
As of December 31, 2016		1,482,520		—		1,482,520
As of December 31, 2017		1,482,520		146,580		1,629,100

Intangible assets comprise upfront and milestone payments related to licenses. In 2013 a milestone of CHF 1,125,000 related to the AM-111 program was recorded. Amortization will commence once the intangible assets are available for use, which will be the case after regulatory approvals are obtained and the related products are available for use.

On February 2, 2017, the Company entered into an asset purchase agreement with Otifex Therapeutics Pty Ltd (“Otifex”), pursuant to which the Company agreed to purchase and Otifex has agreed to sell to the Company certain pre-clinical and clinical assets related to a formulation for the intranasal application of Betahistine, which the Company refers to as AM-125, as well as intellectual property rights. The Otifex transaction closed in July 2017 and the Company recorded CHF 146,580 as intangibles related to this transaction.

No amortization or impairment was recorded in 2017 and 2016.

Other Receivables

12 Months Ended

Dec. 31, 2017

Other Receivables [Abstract]

Other receivables

9. Other receivables

	December 31, 2017		December 31, 2016
Value added tax receivable		63,452		132,570
Withholding tax receivable		18,115		23,644
Deposit credit cards		79,840		79,900
Other		79,874		60,417
Total other receivables		241,281		296,531

Other receivables were not considered impaired in the years under review.

Prepayments

12 Months Ended

Dec. 31, 2017

Prepayments [Abstract]

Prepayments

10. Prepayments

	December 31, 2017		December 31, 2016
Advance payments to supplier		442,828		759,716
Clinical projects and related activities		—		41,681
Insurance		200,246		151,198
Other		9,839		—
Total prepayments		652,913		952,595

Cash and Cash Equivalents

12 Months Ended

Dec. 31, 2017

Cash and Cash Equivalents [Abstract]

Cash and cash equivalents

11. Cash and cash equivalents

	December 31, 2017		December 31, 2016
Cash in bank accounts		14,972,761		32,441,968
Cash on hand		608		254
Total cash and cash equivalents		14,973,369		32,442,222

Capital and Reserves

9 Months Ended

12 Months Ended

Sep. 30, 2018

Dec. 31, 2017

Capital and Reserves [Abstract]

Capital and reserves

5. Capital and reserves

Share capital

The issued share capital of the Company consisted of:

	Common Shares Number
	2018			2017
As of January 1		48,373,890			34,329,704
Common shares issued for capital increase with a nominal value of CHF 0.40 each		12,800,000			10,000,000
Adjustment during the Merger:
Issuance of Auris NewCo Shares		6,117,388			—
Cancellation of Auris OldCo Shares		(61,173,890	)		—
Common shares issued for capital increase with a nominal value of CHF 0.02 each		17,948,717			—
Shares outstanding after Merger on March 13, 2018		24,066,105			—
Total, as of September 30, 2018		24,066,105			44,329,704

All shares have a nominal value of CHF 0.02 after the Merger (respective CHF 0.40 before the Merger) and are fully paid in. As of September 30, 2018, the nominal value of the 24,066,105 issued shares amounted to CHF 481,322.10 (as of September, 2017, the nominal value of 44,329,704 issued shares amounted to CHF 17,731,881.60).

As of March 13, 2018, following consummation of the Merger, the number of shares were reduced by the ratio of 10 to 1 (resulting in a “reverse share split”) and the nominal value per share was reduced from CHF 0.40 to CHF 0.02. This resulted in a reduction of share capital and in a concurrent increase in share premium, totaling to CHF 24,347,208, presented in the statement of changes in equity in the line reorganization of group structure.

Equity Offerings

On July 17, 2018 the Company completed a public offering of 17,948,717 common shares with a nominal value of CHF 0.02 each, Series A warrants each entitling its holder to purchase 0.35 of a common share and for an aggregate of 6,282,050 common shares, and Series B warrants entitling its holder to purchase 0.25 of a common share for an aggregate of 4,487,179 common shares (the “July 2018 Registered Offering”). The exercise price for both series Warrants is CHF 0.39 per common share. The net proceeds to us from the July 2018 Registered Offering were approximately $6.2 million, after deducting underwriting discounts and other offering expenses payable by us.

The Company had transaction costs amounting to CHF 851,692. The transactions costs were recorded as CHF 742,833 in equity for the issuance of the common shares and CHF 108,809 to finance expense in the statement of profit or loss and comprehensive loss for the issuance of the warrants.

As of September 30, 2018 the fair value of the warrants issued in the July 2018 Registered Offering amounted CHF 872,217. Since its initial recognition, the fair value of the warrants issued in the July 2018 Registered Offering has decreased by CHF 24,224, resulting in a gain in the corresponding amount (fair value as of July 17, 2018: CHF 896,441).

On May 2, 2018 the Company entered into the 2018 Commitment Purchase Agreement and the 2018 Registration Rights Agreement with LPC. Pursuant to the 2018 Commitment Purchase Agreement, LPC agreed to purchase common shares for up to $10,000,000 over the 30-month term of the 2018 Commitment Purchase Agreement. As of November 15, 2018, the Company has issued an aggregate of 750,00 common shares for aggregate proceeds of $488,075 to LPC under the 2018 Commitment Purchase Agreement. The 2018 Commitment Purchase Agreement replaces the 2017 Commitment Purchase Agreement, which was terminated as a result of the Merger. Under the 2017 Commitment Purchase Agreement, LPC agreed to subscribe for up to $13,500,000 common shares and prior to its termination, the Company had issued an aggregate of 2,600,000 common shares for aggregate proceeds of $1.8 million to LPC under the 2017 Commitment Purchase Agreement.

The Company had transaction costs amounting to CHF 349,907. The payment of CHF 252,351 was recorded as a derivative financial instrument and classified as a non-current asset and CHF 97,556 to finance expense in the statement of profit or loss and comprehensive loss.

On January 30, 2018, the Company completed a public offering of 12,499,999 common shares with a nominal value of CHF 0.40 each and concurrent offering of 7,499,999 warrants, each warrant entitling its holder to purchase one common share (the “January 2018 Registered Offering”). The net proceeds to the Company from the January 2018 Registered Offering were approximately $4.9 million, after deducting placement agent fees and other estimated offering expenses payable by the Company. As of March 13, 2018, following the consummation of the Merger, the outstanding warrants issued in the January 2018 Registered Offering were exercisable for up to 750,002 common shares (assuming the Company rounds up fractional common shares to the next whole common share) at an exercise price of $5.00 per common share.

The Company had transaction costs amounting to CHF 654,985. The transaction costs were recorded as CHF 341,226 in equity for the issuance of the common shares and CHF 313,760 to finance expense in the statement of profit or loss and comprehensive loss for the issuance of the warrants.

As of September 30, 2018 the fair value of the warrants issued in the January 2018 Registered Offering amounted to CHF 161,737. Since its initial recognition, the fair value of these warrants has decreased by CHF 2,322,010 resulting in a gain in the corresponding amount (fair value as of January 30, 2018: CHF 2,483,747).

On October 10, 2017 the Company entered into a purchase agreement and a registration rights agreement with Lincoln Park Capital Fund, LLC. Pursuant to the purchase agreement, LPC agreed to subscribe for up to $13,500,000 of our common shares over the 30-month term of the purchase agreement. On January 23, 2018, the Company issued 300,000 of our common shares to LCP for an aggregate amount of CHF 136,077 under the purchase agreement.

On February 21, 2017, in connection with a public offering of 12,499,000 common shares, the Company issued 10,000,000 warrants, each warrant entitling its holder to purchase 0.70 of a common share at an exercise price of $1.20 per common share. Additionally, the underwriter was granted a 30-day option to purchase up to 1,500,000 additional common shares and/or 1,500,000 additional warrants, of which the underwriter partially exercised its option for 1,350,000 warrants. As of March 13, 2018, following the consummation of the Merger, the outstanding warrants issuable in the 2017 offering were exercisable for an aggregate of 794,000 common shares, at an exercise price of $12.00 per common share. As of September 30, 2018 the fair value of the warrants amounted to CHF 50,070. The revaluation gain of the derivative for the nine months ended September 30, 2018 amounted to CHF 1,763,342, which is an increase of CHF 63,220 when comparing to the same period in 2017. Since its initial recognition, the fair value decreased by CHF 5,040,393 resulting in a gain in the corresponding amount (fair value as of February 21, 2017: CHF 5,090,463).

Issue of common shares upon exercise of options

During the nine months ended September 30, 2018, no options were exercised.

Controlled Equity Offering

On June 1, 2016, the Company entered into a Controlled Equity Offering Sales Agreement with Cantor Fitzgerald, pursuant to which we might have offered and sold from time to time common shares, with a nominal value of CHF 0.40 per common share, having an aggregate offering price of up to $35 million through Cantor. In the first quarter of 2018, we did not offer or sell any common shares under the Controlled Equity Offering Sales Agreement. The Controlled Equity Offering program terminated upon consummation of the Merger on March 13, 2018.

12. Capital and reserves

Share capital

The issued share capital of the Company at December 31 consisted of:

	December 31, 2017				December 31, 2016
	Number		CHF		Number		CHF
Common shares with a nominal value of CHF 0.40 each		48,373,890		19,349,556		34,329,704		13,731,881
Total		48,373,890		19,349,556		34,329,704		13,731,881

	Common Shares (Number)
	2017		2016
As of January 1		34,329,704		34,303,891
Common shares issued or for stock options exercises with a nominal value of CHF 0.40 each
Common shares issued for the follow-on offering with a nominal value of CHF 0.40 each		14,044,186
Restricted shares issue for bonus purposes nominal value of CHF 0.40 each		—		25,813
Total, as of December 31		48,373,890		34,329,704

All shares have a nominal value of CHF 0.40 and are fully paid in. As of December 31, 2017, the nominal value of the 48,373,890 issued shares amounted to CHF 19,349,556.00 (as of December 31, 2016, the nominal value of 34,329,704 issued shares amounted to CHF 13,731,881.60).

On October 10, 2017, the Company entered into a purchase agreement (the “Commitment Purchase Agreement”) and a Registration Rights Agreement (the “Registration Rights Agreement”) with Lincoln Park Capital Fund, LLC (“LPC”). Pursuant to the Commitment Purchase Agreement, LPC has agreed to subscribe for up to $13,500,000 of our common shares over the 30-month term of the Commitment Purchase Agreement. Regular purchases may be made from time to time under the Commitment Purchase Agreement subject to certain amount limitations. As of December 31, 2017, the Company has issued an aggregate of 2,300,000 common shares for aggregate proceeds of CHF 1,594,611 ($1,630,415) to LPC pursuant to the Commitment Purchase Agreement. The related transaction cost of CHF 25,701 were recorded in equity.

The transaction costs for obtaining the Commitment Purchase Agreement were recorded as CHF 265,205 in transaction costs in the statement of profit or loss and comprehensive income/(loss). The commitment fee of CHF 290,400 (US$300,000) represents the fair value of the right to require LPC to purchase common shares within the Commitment Purchase Agreement. The proportion of the commitment fee CHF 35,073 related to cash received from common shares issued pursuant to the Commitment Purchase Agreement as a percentage of the total contract value of US$13.5 million is recognized in equity as if this proportion of the commitment fee was incorporated into the strike price of the option. The remaining portion of the commitment fee of CHF 255,327 was derecognized through transaction costs in the statement of profit and loss and comprehensive income/(loss) as the Commitment Purchase Agreement did not have any significant future value as of December 31, 2017 due the fact that the Commitment Purchase Agreement terminated upon consumption of Merger on March 13, 2018.

Additionally, on October 16, 2017, the Company issued 1,744,186 of its common shares to LPC for aggregate proceeds of CHF 1,446,150 ($1,500,000) pursuant to our effective shelf registration statement on Form F-3. The related transaction cost of CHF 63,056 were recorded in equity.

On February 21, 2017, the Company completed a public offering (the “February 2017 Offering”) of 10,000,000 common shares with a nominal value of CHF 0.40 each and 10,000,000 warrants, each warrant entitling its holder to purchase 0.70 of a common share. The gross proceeds to the Company from the February 2017 Offering were CHF 9,998,305 (US$10,000,000). The Company had transaction costs amounting to CHF 903,919. The transactions costs were recorded as CHF 397,685 in equity for the issuance of the common shares and CHF 506,234 to finance expense in the statement of profit or loss and comprehensive loss for the issuance of the warrants.

On May 20, 2015, the Company completed a public offering of 5,275,000 shares, yielding net proceeds after underwriting discounts of USD 23.6 million (CHF 21.7 million). Offering costs associated with the follow-on amounted to CHF 643,796. Following the offering (and settlement of the employee options mentioned below) there were 34,329,704 common shares of the Company outstanding as of December 31, 2016.

Issuance of common shares with restrictions

For the business year 2015, 25,813 restricted common shares with a nominal value of CHF 0.40 were awarded and issued on January 7, 2016 under the Equity Incentive Plan for the purpose of share based bonus payments. The shares are fully vested on the grant date but remain subject to transfer restrictions for a period until January 7, 2019. The Company recorded a payroll charge of CHF 188,092 in 2015.

Controlled Equity Offering

On June 1, 2016, we entered into a Controlled Equity OfferingSM Sales Agreement (the “Sales Agreement”) with Cantor Fitzgerald & Co. (“Cantor”), pursuant to which we may offer and sell, from time to time common shares, with a nominal value of CHF 0.40 per share, having an aggregate offering price of up to $35 million through Cantor. In 2017, we did not offer or sell any common shares under the Sales Agreement. The Controlled Equity Offering program terminated upon consummation of the Merger on March 13, 2018.

Authorized share capital

On April 13, 2017, the annual general meeting of shareholders revised the provisions related to authorized and contingent capital of the Company and approved an increase and extension of the authorized share capital. As of December 31, 2017, the Company’s authorized capital amounted to CHF 8,860,000 and allowed to Board of Directors, subject to the terms and conditions set forth in the Articles of Association, to issue up to 22,150,000 fully paid registered shares with a nominal value of CHF 0.40 each.

Conditional share capital

The share capital may be increased by the issuance of up to 6,500,000 fully paid registered Common Shares with a nominal value of CHF 0.40 per share and to the maximum amount of CHF 2,600,000 in execution of subscription rights, which may be granted to employees, members of the Board of Directors as well as key service providers (see Note 13 for further reference).

The Company’s share capital may be further increased by the issuance of up to 15,650,000 fully paid registered Common Shares with a nominal value of CHF 0.40 per share and to the maximum amount of CHF 6,260,000 in execution of conversion rights in connection with warrants and convertible bonds of the Company. For the terms of the warrant issued to Hercules, refer to Note 24.

Share Based Compensation

9 Months Ended

12 Months Ended

Sep. 30, 2018

Dec. 31, 2017

Share based payments [Abstract]

Share based payments

7. Share based payments

Share based compensation net loss of CHF 123,425 was recognized for the nine months ended September 30, 2018. Share based compensation loss related to employee stock options amounted to CHF 108,399 for the nine months ended September 30, 2018 (for the nine months ended September 30, 2017 a loss of CHF 259,561).

Share based compensation expense of CHF 15,024 related to the purchase of intangibles was capitalized for the nine months ended September 30, 2018. A total of 371,893 options were granted in the nine months ended September 30, 2018. The exercise price of the options granted is US$1.579 per share. The methodology for computation of share based compensation expense for the period is consistent with the methodology used in 2017.

13. Share based compensation

Description

On November 21, 2008, the Company established share option programs (“Stock Option Plans A and B”) for employees, members of the Board of Directors as well as key service providers to purchase shares in the Company. Stock Option Plan A was amended and superseded by an updated version effective November 24, 2009, and replaced with amendments by Stock Option Plan C for any future option grants effective April 5, 2013. Grants under Stock Option Plan A and subsequently under Stock Option Plan C were offered in each year with vesting periods of three and four years; grants under Stock Option Plan B were made in 2008, 2009 and 2014 only. Stock Option Plan B was abolished in 2015 and no grants under Stock Option Plan B were made in 2015. In 2014, the Group introduced a further equity incentive plan, the EIP. The Company granted 1,918,100 options in 2017 (2016: 555,660) under the EIP.

Holders of vested options are entitled to purchase common shares of the Company. For the stock option plans that were in place before the IPO, the exercise price corresponded to the value per share at the most recent financing round. Under the Equity Incentive Plan, the Board of Directors defined the exercise price as the average daily closing price of the Company’s shares during the 30 days preceding the date of grant. All options are to be settled by the physical delivery of shares. The key terms and conditions related to the grants under these programs are as at December 31, 2017 as follows:

Plan	Number of options outstanding		Vesting conditions	Contractual life of option
Stock option Plan A		50,000	3 years’ service from grant date	5 years
Stock option Plan C		121,250	4 years’ service from grant date	6 years
Equity Incentive Plan Board		368,200	1 year service from grant date	8 years
Equity Incentive Plan Employees/Board*		856,045	2 years’ service from grant date (50%)	8 years
Equity Incentive Plan Employees/Board*		856,045	3 years’ service from grant date (50%)	8 years

25,000 options issued to Bettina Stubinski, the former Chief Medical Officer of the Company, have vested early, on December 29, 2016 and expired on March 29, 2017.

Measurement of fair values

The fair value of the options was measured based on the Black-Scholes formula.

	Stock Option Plan
	Equity Incentive Plan 2017	Equity Incentive Plan 2017	Equity Incentive Plan 2016	Equity Incentive Plan 2016
Fair value at grant date	USD 0.198 (1 year vesting)(1)	USD 0.233 (1 year vesting)(2)	USD 0.308 (1 year vesting)(1)	USD 1.094 (1 year vesting)(2)
	USD 0.287 (2 year vesting)(1)	USD 0.335 (2 year vesting)(2)	USD 0.472 (2 year vesting)(1)	USD 1.560 (2 year vesting)(2)
	USD 0.352 (3 year vesting)(1)	USD 0.406 (3 year vesting)(2)	USD 0.583 (3 year vesting)(1)	USD 1.888 (3 year vesting)(2)
Share price at grant date	USD 0.76	USD 0.72	USD 1.03	USD 3.66
Exercise price	USD 0.82	USD 0.82	USD 1.39	USD 3.92
Expected volatility	72.85%	93.01%	100.93%	82.00%
Expected life	1, 2 and 3 years	1, 2 and 3 years	1, 2 and 3 years	1, 2 and 3 years
Expected dividends	—	—	—	—
Risk free interest rate	2.38%	2.19%	1.84%	1.83%

(1)

October grants for the respective year

(2)

April grants for the respective year

The Company uses its own historic volatility to calculate expected volatility. The expected life of all options is assumed to correspond to the vesting period.

The total expense recognized for equity-settled share-based payment transactions were CHF 354,851 in 2017 (2016: CHF 290,783, 2015: 311,671).

The number and weighted average exercise prices (in CHF) of options under the share option programs for Stock Option Plan A, Stock Option Plan C and the EIP are as follows:

	2017							2016
	Number of options			Weighted average exercise price		Weighted average remaining term		Number of options			Weighted average exercise price		Weighted average remaining term
Outstanding at January 1		1,038,140			3.36		6.14		629,010			4.92		5.42
Expired during the year		(67,500	)		—		—		(17,500	)		—		—
Forfeited during the year		(637,200	)		—		—		(129,030	)		—		—
Exercised during the year		—			—		—		—			—		—
Granted during the year		1,918,100			0.82		7.70		555,660			1.99		7.81
Outstanding at December 31		2,251,540			1.74		6.88		1,038,140			3.36		6.14
Exercisable at December 31		326,510			4.48		4.24		199,005			4.56		3.11

The range of exercise prices for outstanding options was CHF 0.8 to CHF 5.81 as of December 31, 2017 and CHF 1.35 to CHF 6.01 as of December 31, 2016.

Trade and Other Payables

12 Months Ended

Dec. 31, 2017

Accrued Expenses/Trade and Other Payables [Abstract]

Trade and other payables

14. Trade and other payables

	December 31, 2017		December 31, 2016
Trade accounts payable – third parties		1,032,557		1,733,319
Other		168,263		104,678
Total trade and other payables		1,200,820		1,837,997

Accrued Expenses

12 Months Ended

Dec. 31, 2017

Accrued Expenses/Trade and Other Payables [Abstract]

Accrued expenses

15. Accrued expenses

	December 31, 2017		December 31, 2016
Accrued research and development costs including milestone payments		4,060,048		4,307,089
Professional fees		227,363		316,470
Accrued vacation & overtime		69,455		115,749
Employee benefits incl. share based payments		217,649		138,960
Board of Directors fees		—		1,529
Other		108,198		26,945
Total accrued expenses		4,682,713		4,906,742

Research and Development Expense

12 Months Ended

Dec. 31, 2017

Research and Development Expense/General and Administrative Expense/Finance Income and Finance Expense [Abstract]

Research and development expense

16. Research and development expense

	December 31, 2017		December 31, 2016		December 31, 2015
Pre-clinical projects		642,821		546,429		468,326
Clinical projects		12,365,768		16,639,304		20,808,025
Drug manufacturing and substance		2,027,184		2,608,814		1,866,148
Employee benefits and expenses		2,773,516		2,854,624		2,140,664
Lease expenses		111,680		84,344		42,953
Patents and trademarks		603,892		941,836		824,201
Regulatory projects		632,387		1,043,287		331,822
Depreciation tangible assets		53,594		58,125		54,037
Total research and development expense		19,210,842		24,776,763		26,536,176

General and Administrative Expense

12 Months Ended

Dec. 31, 2017

Research and Development Expense/General and Administrative Expense/Finance Income and Finance Expense [Abstract]

General and administrative expense

17. General and administrative expense

	December 31, 2017		December 31, 2016			December 31, 2015
Employee benefits and expenses		2,097,853		2,174,543			1,502,900
Business development		161,985		45,649			72,562
Travel expenses		199,484		158,774			257,454
Administration expenses		2,522,217		2,969,796			2,386,791
Lease expenses		81,277		63,695			59,665
Depreciation tangible assets		69,190		39,475			38,740
Capital tax expenses		18,403		(5,420	)		23,458
Total general and administrative expenses		5,150,409		5,446,512			4,341,570

Employee Benefits

9 Months Ended

12 Months Ended

Sep. 30, 2018

Dec. 31, 2017

Employee Benefits [Abstract]

Employee benefits

6. Employee benefits

	Nine months ended
	September 30, 2018		September 30, 2017
Salaries		2,119,880		2,971,707
Pension costs		302,748		277,554
Share based compensation expense		108,399		259,561
Other employee costs and social benefits		91,225		251,000
Total employee benefits		2,622,252		3,759,822

18. Employee benefits

	December 31, 2017			December 31, 2016		December 31, 2015
Salaries		3,761,171			3,662,180		2,833,741
Pension costs		378,588			342,805		282,517
Other social benefits		277,468			301,537		191,079
Share based payments costs		354,851			290,783		311,671
Recruitment costs		125,731			391,035		—
Other personnel expenditures		(26,439	)		40,827		24,557
Total employee benefits		4,871,370			5,029,167		3,643,565

Benefit plans

The Company participates in a retirement plan (the “Plan”) organized as an independent collective foundation, that covers all of its employees in Switzerland, including management. The collective foundation is governed by a foundation board. The board is made up of an equal number of employee and employer representatives of the affiliated companies. The Company has no direct influence on the investment strategy of the collective foundation. Moreover, certain elements of the employee benefits are defined in the same way for all affiliated companies. This is mainly related to the annuity factors at retirement and to interest allocated on retirement savings. The employer itself cannot determine the benefits or how they are financed directly. The foundation board of the collective foundation is responsible for the determination of the investment strategy, for making changes to the pension fund regulations and in particular, also for defining the financing of the pension benefits.

The old age benefits are based on retirement savings for each employee, coupled with annual retirement credits and interest (there is no possibility to credit negative interest). At retirement age, the insured members can choose whether to take a pension for life, which includes a spouse’s pension, or a lump sum. In addition to retirement benefits, the plan benefits also include disability and death benefits. Insured members may also buy into the scheme to improve their pension provision up to the maximum amount permitted under the rules of the plan and may withdraw funds early for the purchase of a residential property for their own use subject to limitations under Swiss law. On leaving the Company, retirement savings are transferred to the pension institution of the new employer or to a vested benefits institution. This type of benefit may result in pension payments varying considerably between individual years. In defining the benefits, the minimum requirements of the Swiss Law on Occupational Retirement, Survivors and Disability Pension Plans (BVG) and its implementing provisions must be observed. The BVG defines the minimum pensionable salary and the minimum retirement credits. In Switzerland, the minimum interest rate applicable to these minimum retirement savings is set by the Swiss Federal Council at least once every two years. The rate was 1.75% in 2015, 1.25% in 2016 and 1.00% in 2017.

The assets are invested by the collective foundation in a diversified portfolio that respects the requirements of the Swiss BVG. Under the Plan, both the Company and the employee share the costs equally. The structure of the plan and the legal provisions of the BVG mean that the employer is exposed to actuarial risks. The main risks are investment risk, interest risk, disability risk and the risk of longevity. Through the affiliation to a collective foundation, the Company has minimized these risks, since they are shared between a much greater number of participants.

The following tables present information about the net defined benefit liability and its components:

Change in defined benefit obligation

	2017			2016
Defined benefit obligation at January 1		7,122,841			5,427,776
Service costs		348,172			319,173
Plan participants’ contribution		236,074			218,275
Interest cost		50,494			62,916
Actuarial losses		60,781			417,937
Transfer-out amounts		(440,950	)		(1,276,315	)
Transfer-in amounts of new employees		622,205			1,953,079
Defined benefit obligation at December 31		7,999,617			7,122,841

The defined benefit obligation includes only liabilities for active employees. The weighted average modified duration of the defined benefit obligation at December 31, 2017 is 20.9 years (2016: 21.7 years).

Change in fair value of plan assets

	2017			2016
Fair value of plan assets at January 1		5,030,407			3,851,943
Interest income		37,500			47,994
Return on plan assets excluding interest income		332,759			23,835
Employer contributions		236,074			220,306
Plan participants’ contributions		236,074			218,275
Transfer-out amounts		(440,950	)		(1,276,315	)
Transfer-in amounts of new employees		622,205			1,953,079
Administration expense		(17,422	)		(8,710	)
Fair value of plan assets at December 31		6,036,647			5,030,407

Net defined benefit liability recognized in the statement of financial position

	December 31, 2017			December 31, 2016
Present value of funded defined benefit obligation		7,999,617			7,122,841
Fair value of plan assets		(6,036,647	)		(5,030,407	)
Net defined benefit liability		1,962,970			2,092,434

Defined Benefit Cost

	2017		2016		2015
Service cost		348,172		319,173		261,778
Net interest expense		12,994		14,922		14,873
Administration expense		17,422		8,710		5,866
Total defined costs for the year recognized in profit or loss		378,588		342,805		282,517

Remeasurement of the Defined Benefit Liability

	2017			2016			2015
Actuarial loss (gain) arising from changes in financial assumption		(150,552	)		412,396			(167,623	)
Actuarial loss arising from experience adjustments		211,331			264,417			175,375
Actuarial gain arising from demographic assumptions		—			(258,876	)		—
Return on plan assets excluding interest income		(332,759	)		(23,835	)		46,164
Total defined benefit cost for the year recognized in the other comprehensive loss		(271,980	)		394,102			53,916

Assumptions

	2017			2016			2015
At December 31
Discount rate		0.80	%		0.70	%		1.10	%
Future salary increase		1.10	%		1.10	%		1.10	%
Pension indexation		0.00	%		0.00	%		0.00	%
Mortality and disability rates		BVG2015G			BVG2015G			BVG 2010G

Sensitivity analysis

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below.

	December 31,
	2017			2016
Change in assumption		0.25 % increase			0.25 % increase
Discount rate		(354,477	)		(324,057	)
Salary increase		49,707			42,181
Pension indexation		189,965			201,221
Change in assumption		+ 1 year			+ 1 year
Life expectancy		182,977			167,161

Finance Income and Finance Expense

12 Months Ended

Dec. 31, 2017

Research and Development Expense/General and Administrative Expense/Finance Income and Finance Expense [Abstract]

Finance income and finance expense

19. Finance income and finance expense

	2017		2016			2015
Interest income		53,570		67,565			36,562
Net foreign currency exchange gain		1,912,681		843,950			1,806,206
Revaluation gain from derivative financial instruments		3,372,186		291,048			—
Total finance income		5,338,437		1,202,563			1,842,768
Interest expense (incl. Bank charges)		1,640,394		828,547			7,985
Net foreign currency exchange loss		2,737,273		944,047			662,100
Total finance expense		4,377,667		1,772,594			670,085
Finance income/(expense), net		960,770		(570,031	)		1,172,683

In 2017, net foreign currency exchange gains contain translation gains of CHF 1,315,029 (2016: CHF 396,665; 2015: CHF 1,154,513) which arose on the Company’s USD and EUR denominated cash and cash equivalents. In 2017, interest expenses include interest paid to Hercules Capital, Inc. under the Loan and Security Agreement in an amount of CHF 1,182,369 (2016: CHF 546,170; 2015: CHF 0).

Taxation

9 Months Ended

12 Months Ended

Sep. 30, 2018

Dec. 31, 2017

Taxation [Abstract]

Taxation

3. Taxation

The Group’s income tax expense recognized in the condensed interim consolidated statement of profit or loss is presented as follows:

	Nine months ended
	September 30, 2018		September 30, 2017
Deferred income tax expense		—		—
Deferred income tax gain		26,179		24,573
Total income tax gain		26,179		24,573

The tax effect of taxable temporary differences that give rise to deferred income tax liabilities or to deferred income tax assets as of September 30, 2018 and 2017 is presented as follows:

	September 30, 2018			September 30, 2017
Deferred Tax liabilities
Intangible assets		(354,117	)		(349,052	)
Hercules Loan & Warrant		(5,202	)		(53,309	)
Derivatives financial instrument		(19,759	)		—
Total		(379,078	)		(402,361	)
Deferred Tax asset
Net operating loss (NOL)		226,448			230,352
Total		226,448			230,352
Deferred Tax, net		(152,630	)		(172,009	)

20. Taxation

The Group’s income tax expense recognized in the consolidated statement of profit or loss and other comprehensive loss was as follows:

	2017			2016		2015
Deferred income tax expense		(21,415	)		—		(32,761	)
Deferred income tax gain		39,188			131,055		32,761
		17,773			131,055		—

The Group’s effective income tax expense differed from the expected theoretical amount computed by applying the Group’s applicable weighted average tax rate of 21.7% in 2017 (2016: 21.5%, 2015: 21.9%) as summarized in the following table:

	2017			2016			2015
Reconciliation
Loss before income tax		(24,427,247	)		(30,793,306	)		(29,705,063	)
Income tax at statutory tax rates applicable to results in the respective countries		5,311,030			6,629,237			6,493,569
Effect of unrecognized temporary differences		193,598			(27,072	)		(105,395	)
Effect of unrecognized taxable losses		(5,429,935	)		(6,360,837	)		(6,438,609	)
Effect of previously unrecognized deferred tax asset		39,189			131,055			—
Effect of expenses deductible for tax purposes		9,696			2,505			—
Effect of expenses not considerable for tax purposes		—			23,716			—
Effect of impact from application of different tax rates		(105,805	)		(267,695	)		—
Effect of unrecognized taxable losses in equity		—			146			50,435
Income tax gain		17,773			131,055			—

The tax effect of taxable temporary differences that give rise to deferred income tax liabilities or to deferred income tax assets as of December 31 is presented below:

	December 31, 2017			December 31, 2016
Deferred Tax Liabilities
Intangible assets		(349,052	)		(327,637	)
Hercules Loan Facility		(47,477	)		(76,390	)
Total		(396,529	)		(404,027	)

	December 31, 2017			December 31, 2016
Deferred Tax Assets
Net operating loss (NOL)		217,720			207,445
Total		217,720			207,445
Deferred Tax, net		(178,809	)		(196,582	)

Deferred Tax 2017	Opening Balance			Recognized in Profit or Loss			Recognized in Equity		Closing Balance
Intangible assets		(327,637	)		(21,415	)		—		(349,052	)
Hercules Loan Facility		(76,390	)		28,913			—		(47,477	)
Net operating loss (NOL)		207,445			10,275			—		217,720
Total		(196,582	)		17,773			—		(178,809	)

Deferred Tax 2016	Opening Balance			Recognized in Profit or Loss			Recognized in Equity		Closing Balance
Intangible assets		(327,637	)		—			—		(327,637	)
Hercules Loan Facility		—			(76,390	)		—		(76,390	)
Net operating loss (NOL)		—			207,445			—		207,445
Total		(327,637	)		131,055			—		(196,582	)

As of December 31, 2017, the Group had total gross tax loss carry forwards amounting to CHF 142 million (2016: CHF 115.4 million), of which CHF 140.9 million related to Auris Medical AG, Auris Medical Holding AG and Otolanum AG in Switzerland and CHF 1.1 million to Auris Medical Inc. in the United States (2016: CHF 114.3 million for Auris Medical AG and Otolanum AG and CHF 1.1 million for Auris Medical Inc.).

The Group’s tax loss carry-forwards with their expiry dates are as follows:

	December 31, 2017		December 31, 2016
Within 1 year		1,754,398		1,859,601
Between 1 and 3 years		31,089,191		9,928,391
Between 3 and 7 years		108,055,089		102,542,641
More than 7 years		1,072,260		1,087,543
Total		141,970,938		115,418,176

The tax effect of the major unrecognized temporary differences and loss carry-forwards is presented in the table below:

	December 31, 2017		December 31, 2016
Deductible temporary differences
Employee benefit plan		433,816		450,227
Stock option plans		400,764		—
Total potential tax assets		834,580		450,227
Taxable unrecognized temporary differences
Property and equipment		—		—
Total unrecognized potential tax liabilities		—		—
Offsetting potential tax liabilities with potential tax assets		—		—
Net potential tax assets from temporary differences not recognized		834,580		450,227
Potential tax assets from loss carry-forwards not recognized		29,959,963		25,082,968
Total potential tax assets from loss carry-forwards and temporary differences not recognized		30,794,543		25,533,195

Loss Per Share

9 Months Ended

12 Months Ended

Sep. 30, 2018

Dec. 31, 2017

Loss Per Share [Abstract]

Loss per share

8. Loss per share

	Three months ended						Nine months ended
	September 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017
Loss attributable to owners of the Company		(2,980,517	)		(6,012,481	)		(7,805,535	)		(19,823,881	)
Weighted average number of shares outstanding		20,944,590			4,432,970			10,987,582			4,260,176
Basic and diluted loss per share		(0.14	)		(1.36	)*		(0.71	)		(4.65	)*

The basic and diluted loss per share for the three and nine months ended September 30, 2017 is revised to reflect the reverse-split ratio of 10 to 1 following the Merger on March 13, 2018.

For the three and nine months ended September 30, 2018 and September 30, 2017 basic and diluted loss per share are calculated based on the weighted average number of shares issued and outstanding and excludes shares to be issued under the stock option plans, as they would be anti-dilutive. As of the date hereof, the Company had 438,050 options outstanding under its stock option plans. The average number of options outstanding between January 1, 2018 and September 30, 2018 was 332,998 (139,065 for the period between January 1, 2017 and September 30, 2017).

21. Loss per share

	December 31, 2017			December 31, 2016			December 31, 2015
Loss attributable to owners of the Company		(24,409,474	)		(30,662,251	)		(29,705,063	)
Weighted average number of shares outstanding		43,741,870			34,329,280			32,299,166
Basic and diluted loss per share		(0.56	)		(0.89	)		(0.92	)

For the years ended December 31, 2017 and 2016 basic and diluted loss per share is based on the weighted average number of shares issued and outstanding and excludes shares to be issued under the Stock Option Plans (Note 13) and the warrant issued to Hercules (Note 24) as they would be anti-dilutive. As of December 31, 2017, the Company has 2,251,540 options outstanding under its stock option plans. The average number of options outstanding between January 1, 2017 and December 31, 2017 was 1,676,526 (769,529 for the period between January 1, 2016 and December 31, 2016). As of December 31, 2017, the Company issued warrants to purchase up to 8,186,117 of its common shares outstanding.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2017

Leases1 [Abstract]

Commitment and contingencies

22. Commitments and contingencies

Operating lease commitments

On October 1, 2016, the Group entered into a lease for a new office space under an operating lease agreement. The lease has a five year fixed term, subject to a one-time cancellation option effective as per September 30, 2019. Effective December 31, 2017, the Group entered into a termination agreement related to a lease entered into on April 1, 2013.

The future minimum lease payments under non-cancellable operating leases that are not accounted for in the statement of financial position were as follows:

	December 31, 2017		December 31, 2016
Within one year		161,110		161,110
Between one and five years		446,051		607,161
Total		607,161		768,271

Office lease expenses of CHF 192,957, CHF 148,039 and CHF 107,450 were booked in 2017, 2016 and 2015, respectively, in the consolidated statement of profit or loss and other comprehensive loss.

Related Party Transactions

12 Months Ended

Dec. 31, 2017

Related Party [Abstract]

Related party transactions

23. Related party transactions

For purposes of these consolidated financial statements, parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions. Also, parties under common control of the Group are considered to be related. Key management personnel are also related parties. In considering each possible related party relationship, attention is directed to the substance of the relationship, and not merely the legal form.

Compensation of the members of the Board of Directors and Management

In 2017, the total compensation paid to management amounted to CHF 1,973,167 (2016: CHF 1,871,406; 2015: CHF 1,619,208). The fees paid to members of the Board of Directors in 2017 for their activities as board members totaled CHF 337,619 (2016: CHF 364,276; 2015: CHF 329,827).

Up to the Company’s IPO, non-executive directors received part or all of their remuneration in stock options; travel and out of pocket expenses were reimbursed in cash by the Group. Executive directors and directors delegated and remunerated by a shareholder for its representation on the Board were not entitled to any specific remuneration for their Board membership and work. Following the IPO, the Board’s remuneration policy was modified in that all non-executive directors received remuneration for their work as members of the Board as well as of the newly constituted Compensation Committee and Audit Committee.

	Executive Management						Board of Directors						Total
	2017		2016		2015		2017		2016		2015		2017		2016		2015
Short term benefits		1,576,864		1,554,850		1,363,796		280,762		325,493		268,810		1,857,626		1,880,343		1,632,606
Post-employee benefits years		94,839		88,838		78,721		—		—		—		94,839		88,838		78,721
Share-based payment charge		190,659		217,981		176,691		72,647		103,380		61,017		263,306		321,361		237,708
Total		1,862,362		1,861,669		1,619,208		353,409		428,873		329,827		2,215,771		2,290,542		1,949,035

In 2017, CHF 263,306 (2016: CHF 321,361; 2015: CHF 237,708) was expensed for grants of stock options to members of the Board of Directors and management. The 2017 share based payment charge shown above excludes adjustments for instruments forfeited in 2017 due to termination of service. Contributions to pension schemes amounted to CHF 94,839, CHF 88,838 and CHF 78,721 during the years 2017, 2016 and 2015, respectively. No termination benefits or other long term benefits were paid.

Members of the Board of Directors and management held 1,782,605, 656,355 and 457,510 stock options as of December 31, 2017, 2016, and 2015, respectively.

For the business year 2015, the Company granted 25,813 restricted shares to employees under the Equity Incentive Plan. The grant price for the 2015 awards was the closing price of our shares on January 7, 2016 (USD 7.08) and resulted in a total payroll charge of CHF 188,092 in 2015. These shares vest upon grant and have a sale restriction for a period of 3 years. For the 2017 and 2016 business year, no restricted shares were issued.

Controlled Equity OfferingSM

Thomas Meyer, our Chief Executive Officer, or the Share Lender, has entered into a share lending agreement with Cantor to facilitate the timely settlement of common shares sold under the Controlled Equity Offering Sales Agreement with Cantor. Pursuant to the terms of the share lending agreement, the Share Lender will lend common shares to Cantor so that those common shares may be delivered by Cantor to purchasers of common shares sold in the offering. Cantor will return common shares to the Share Lender upon the issuance of new common shares by the Company to Cantor. Neither the Company nor the Share Lender received any compensation for this arrangement. In the year ended December 31, 2017, we did not offer or sell any common shares under the Controlled Equity Offering Sales Agreement. The Controlled Equity Offering program terminated upon consummation of the Merger on March 13, 2018.

Loan and Warrant	9 Months Ended	12 Months Ended
Loan and Warrant	Sep. 30, 2018	Dec. 31, 2017
Financial Instruments and Risk Management/Loan and warrant [Abstract]
Loan and Warrant	4. Loan and Warrant On July 19, 2016 the Company entered into a Loan and Security Agreement (the “Hercules Loan and Security Agreement”) for a secured term loan facility of up to $20.0 million with Hercules Capital, Inc. as administrative agent (“Hercules”) and the lenders party thereto. An initial tranche of $12.5 million was drawn on July 19, 2016, concurrently with the execution of the Hercules Loan and Security Agreement. The loan matures on January 2, 2020 and bears interest at a minimum rate of 9.55% per annum, and is subject to the variability of the prime interest rate. The loan is secured by a pledge of the shares of Auris Medical AG owned by the Company, all intercompany receivables owed to the Company by its Swiss subsidiaries and a security assignment of the Company’s bank accounts. On April 5, 2018 the Company entered into an agreement with Hercules whereby the terms of the Hercules Loan and Security Agreement were amended to eliminate the $5 million liquidity covenant in exchange for a repayment of $5 million principal amount outstanding under the Hercules Loan and Security Agreement. The Company shall maintain a blocked cash account denominated in United States Dollars as a blocked account (the “Blocked Account”) as collateral for the remaining principal balance of the Secured Obligations and the End of Term Charge. The carrying value of the cash serving as collateral is USD 2,120,257. The Blocked Account will be reduced on a dollar for dollar basis by the amount of such principal payments or end of term charge when such payments are received by Lender. Following the modification of the loan to repay $5 million, a loss of CHF 334,747 was recognized in connection with the modification of the loan and transaction costs. This loss is presented in the line interest expense in the condensed consolidated interim statement of profit or loss and other comprehensive income or loss. The loan was initially recognized at transaction value with deductions of the fair value of the warrant at transaction date and directly attributable transactions costs. Subsequent to initial recognition, the loan is measured at amortized cost using the effective interest method. Applying this method, the calculated value of the loan as of September 30, 2018 is CHF 2,144,235. Of the CHF 2,144,235 amortization payments due within the next 12 months, the entirety is classified as current liabilities. In connection with the loan facility, the Company issued Hercules a warrant to purchase up to 241,117 of its common shares at an exercise price of $3.94 per share. As of March 13, 2018, following consummation of the Merger, the warrant is exercisable for 15,673 common shares at an exercise price of $39.40 per common share. Upon Hercules making the second advance under the loan facility, the warrant shall become exercisable for the additional 8,440 common shares (assuming the Company rounds up fractional common shares to the next whole common share). The warrant expires on July 19, 2023. The fair value calculation of the warrant is based on the Black-Scholes option price model. Assumptions are made regarding inputs such as volatility and the risk free rate in order to determine the fair value of the warrant. As the warrant is part of the loan transaction, its fair value was deducted from the loan proceeds and accounted for separately as non-current financial liability. Following the initial recognition, the warrant is measured at fair value and the changes in fair value are shown as profit or loss. On September 30, 2018, the fair value of the warrant amounts to CHF 1,065. Therefore, the fair value decreased by the total amount of CHF 22,285 in the current year (fair value as of December 31, 2017: CHF 23,350).	24. Loan and Warrant On July 19, 2016, the Company entered into a Loan and Security Agreement (the “Hercules Loan and Security Agreement”) for a secured term loan facility of up to $20.0 million with Hercules Capital, Inc. as administrative agent (“Hercules”) and the lenders party thereto. An initial tranche of $12.5 million was drawn on July 19, 2016, concurrently with the execution of the Hercules Loan and Security Agreement. The loan matures on January 2, 2020 and bears interest at a minimum rate of 9.55% per annum, and is subject to the variability of the prime interest rate. The loan is secured by a pledge of the shares of Auris Medical AG owned by the Company, all intercompany receivables owed to the Company by its Swiss subsidiaries and a security assignment of the Company’s bank accounts. The loan was initially recognized at transaction value with deductions of the fair value of the warrant at transaction date and directly attributable transactions costs. Subsequent to initial recognition, the loan is measured at amortized cost using the effective interest method. Applying this method, the calculated value of the loan as of December 31, 2017 is CHF 10,126,406. Of the CHF 10,126,406 amortization payments due within the next 12 months in an amount of CHF 4,542,109 are reclassified as current liabilities. In connection with the loan facility, the Company issued Hercules a warrant to purchase up to 241,117 of its common shares at an exercise price of $3.94 per share. As of July 19, 2016, the warrant was exercisable for 156,726 common shares. Upon Hercules making the second advance under the loan facility, the warrant shall become exercisable for the additional 84,391 common shares. The warrant expires on July 19, 2023. The fair value calculation of the warrant is based on the Black-Scholes option price model. Assumptions are made regarding inputs such as volatility and the risk free rate in order to determine the fair value of the warrant. As the warrant is part of the loan transaction, its fair value was deducted from the loan proceeds and accounted for separately as non-current financial liability. Following the initial recognition, the warrant is measured at fair value and the changes in fair value are shown as profit or loss. As of December 31, 2017 the fair value of the warrant amounts to CHF 23,350. Therefore, the fair value decreased by the total amount of CHF 93,782 in the current year (2016: CHF 291,048). As of March 13, 2018, following the consummation of the Merger, the warrant was exercisable for 15,673 common shares at an exercise price of $39.40 per common share.

Warrants from Public Offering	12 Months Ended
Warrants from Public Offering	Dec. 31, 2017
Capital and Reserves [Abstract]
Warrants from Public Offering	25. Warrants from Public Offering On February 21, 2017, the Company completed a public offering (the “February 2017 Offering”) of 10,000,000 common shares with a nominal value of CHF 0.40 each and 10,000,000 warrants, each warrant entitling its holder to purchase 0.70 of a common share. The net proceeds to the Company from the February 2017 Offering were approximately CHF 9.1 million (US$9.1 million), after deducting underwriting discounts and other estimated offering expenses payable by us. The Company had transaction costs amounting to CHF 903,919. The transactions costs were recorded as CHF 397,685 in equity for the issuance of the common shares and CHF 506,234 to finance expense in the statement of profit or loss and comprehensive loss for the issuance of the warrants. The underwriter was granted a 30-day option to purchase up to 1,500,000 additional common shares and/or 1,500,000 additional warrants. On February 15, 2017, the underwriter partially exercised its 30-day option to purchase additional common shares and/or warrants in the amount of 1,350,000 warrants. Consequently, the Company issued warrants to purchase up to 7,945,000 of its common shares at an exercise price of US$1.2 per share. The warrants are exercisable during a five-year period beginning on date of issuance. The fair value calculation of the warrants is based on the Black-Scholes option price model. Assumptions are made regarding inputs such as volatility and the risk free rate in order to determine the fair value of the warrant. If a warrant is exercised, the Company will receive variable proceeds because the Company’s functional currency is CHF and the exercise price is in USD, which results in the warrants being considered liability instruments. Therefore, the warrants were assigned fair values using the Black-Scholes model. The residual value was assigned to the common share sold along with each warrant in accordance with IAS 32 Financial instruments. The gross proceeds from the February 2017 offering were CHF 9,998,305 of which CHF 5,091,817 (fair value as of February 21, 2017) was assigned to the warrants and CHF 4,906,488 was assigned to equity. As of December 31, 2017, the fair value of the warrants amounted to CHF 1,813,413. The fair value decreased by CHF 3,278,404 since the initial recognition. As of March 13, 2018, following the consummation of the Merger, the outstanding warrants issued in the February 2017 Offering are excisable for up to 794,500 common shares at an exercise price of $12.00 per common share.

Events After the Balance Sheet Date	9 Months Ended	12 Months Ended
Events After the Balance Sheet Date	Sep. 30, 2018	Dec. 31, 2017
Events After Reporting Period [Abstract]
Events after balance sheet date	9. Events after the Reporting Period Subsequent to September 30, 2018, certain holders of Series A warrant issued in the July 2018 Registered Offering exercised their warrant shares to purchase 2,904,518 common shares of the Company for a total amount of CHF 1,132,762.02 and certain holders of Series B warrant issued in the July 2018 Registered Offering exercised warrant shares to purchase 2,864,422 common shares for a total amount of CHF 1,117,124.58. As of November 15, 2018, the Company’s issued fully paid-in share capital consists of CHF 611,700.90, divided into 30,585,045 common shares with a nominal value of CHF 0.02 each. As of November 15, 2018, the Company has issued an aggregate of 750,000 common shares for aggregate proceeds of $488,075 to LPC pursuant to the Commitment Purchase Agreement.	26. Events after the balance sheet date *Interference Proceedings* On July 20, 2015, the USPTO declared Patent Interference No. 106,030 involving our issued U.S. patent No. 9,066,865 (the “‘865 Patent”) and Otonomy’s U.S. patent application No. 13/848,636 (the “‘636 Application”). The patent interference identified claims 1-9 in the ‘865 Patent as interfering with claims 38, 43 and 46-50 of the ‘636 Application. The ‘865 Patent discloses methods of treating inner or middle ear diseases with intratympanic injections of poloxamer-based compositions. The claims of the ‘865 Patent are directed to the use of fluoroquinolone antibiotics in poloxamer 407 compositions under certain specifications. On January 26, 2017, the USPTO issued a decision on the interference granting Auris benefit of priority. As a result of the decision, judgment was entered against Otonomy and all claims in the ‘636 Application were refused. In addition, claims 1-8 of the ‘865 Patent were cancelled as the result of the USPTO’s determination that the written description of the specification lacked full scope support for treating middle or inner ear disease with fluoroquinolone. However, claim 9, which is directed to a method of treating viral and bacterial infections with intratympanic injection of a fluoroquinolone antibiotic in a poloxamer 407 composition under certain specifications, was affirmed. On March 27, 2017, Otonomy submitted a notice of appeal to the United States Court of Appeals for the Federal Circuit. To preserve its rights, Auris filed a notice of cross-appeal on April 5, 2017. Otonomy subsequently filed its opening brief on July 20, 2017, and Auris filed its principal and response brief on October 27, 2017. On January 5, 2018, Otonomy filed its opposition and reply brief. Auris filed its reply brief on February 2, 2018. *Equity Offering* As of March 12, 2018, we had issued an aggregate of 300,000 common shares to LPC pursuant to the Commitment Purchase Agreement. On January 30, 2018, we completed a public offering of 12,499,999 common shares with a nominal value of CHF 0.40 each and concurrent offering of 7,499,999 warrants, each warrant entitling its holder to purchase one common share. The net proceeds to the Company from the offering were approximately $4.9 million, after deducting placement agent fees and other estimated offering expenses payable by the Company. As of March 13, 2018, following the consummation of the Merger, the outstanding warrants issued in the January 2018 offering were exercisable for up to 749,999.9 common shares at an exercise price of $5.00 per common share. *Merger* On March 13, 2018, the Company merged into Auris NewCo AG, a newly incorporated, wholly-owned Swiss subsidiary following shareholder approval at an extraordinary general meeting of shareholders held on March 12, 2018. Following the Merger, Auris NewCo, the surviving company, had a share capital of CHF 122,347.76, divided into 6,117,388 common shares with a nominal value of CHF 0.02 each. Pursuant to the Merger, shareholders received one common share with a nominal value of CHF 0.02 of Auris NewCo for every 10 of the Company’s common shares held prior to the Merger, effectively resulting in a “reverse stock split” at a ratio of 10-for-1. Auris NewCo changed its name to “Auris Medical Holding AG” following consummation of the Merger. On March 14, 2018 the common shares of Auris NewCo began trading on the Nasdaq Capital Market under the trading symbol “EARS.” *Related Party Transaction* On February 9, 2018, Thomas Meyer, our Chief Executive Officer, entered into a shares transfer agreement with the Company to facilitate the rounding up of fractional shares resulting from the exchange ratio used in the Merger. Pursuant to the terms of the share transfer agreement, Mr. Meyer committed to transfer, at no consideration, a common share to any shareholder entitled to a fraction of a common share as part of the Merger. Pursuant to the share transfer agreement, the Company nor the Mr. Meyer received any compensation for this arrangement. Any expenses incurred by Mr. Meyer in connection with the transfers under such agreement were borne by the Company. *TACTT3 Data read-out* On March 13, 2018, the Company announced that preliminary top-line data from the TACTT3 trial indicated that the study did not meet its primary efficacy endpoint of a statistically significant improvement in the Tinnitus Functional Score from baseline to Day 84 in the active treated group compared to placebo either in the overall population or in the otitis media subpopulation. The Company is currently investigating the outcomes, including those in TACTT2, the previously conducted sister trial. Following this analysis, the Company will assess if the intangible asset recorded in our financial statements for a total amount of CHF 157,520 related to the acquisition of the technical file will need to be impaired or not.

Significant Accounting Policies (Policies)

9 Months Ended

12 Months Ended

Sep. 30, 2018

Dec. 31, 2017

Impairment of non-financial assets

Basis of consolidation

Basis of consolidation

Subsidiaries

Transactions eliminated on consolidation

Segment reporting

Segment reporting

Foreign currency

Foreign currency

Foreign currency transactions

Foreign operations

Closing rates for the most significant foreign currencies relative to CHF:

Currency		Geographical area	Reporting entities		December 31, 2017		December 31, 2016		December 31, 2015
CHF	Swiss Franc	Switzerland		3		1.0000		1.0000		1.0000
USD	Dollar	United States		1		0.9725		1.0196		1.0014
EUR	Europe	Europe		1		1.1713		1.0723		1.0875

Average exchange rates for the year for the most significant foreign currencies relative to CHF:

Currency		Geographical area	Reporting entities		2017		2016		2015
CHF	Swiss Franc	Switzerland		3		1.0000		1.0000		1.0000
USD	Dollar	United States		1		0.9849		0.9855		0.9613
EUR	Europe	Europe		1		1.1116		1.0901		1.0659

Property and equipment

Property and equipment

Production equipment		5 years
Office furniture and electronic data processing equipment (“EDP”)		3 years
Leasehold improvements		5 years

Intangible assets

Intangible assets

Research and development

Expenditures on the Group’s research programs are not capitalized, they are expensed when incurred.

Licenses, intellectual property and data rights

Measurement

Intangible assets acquired that have finite useful lives are measured at cost less accumulated amortization and any accumulated impairment losses.

Subsequent expenditure

Amortization

Impairment of non-financial assets

Financial instruments

Financial instruments

Recognition and derecognition of non-derivative financial assets and liabilities

The Group derecognizes a financial liability when its contractual obligations are discharged, cancelled, or expired.

Non-derivative financial assets and liabilities — measurement

Loans and receivable

Cash and cash equivalents

Non-derivative financial liabilities — measurement

Share capital

The Company has not paid any dividends since its inception and does not anticipate paying dividends in the foreseeable future.

Repurchase and reissue of ordinary shares (treasury shares)

When shares recognized as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, net of any tax effects, is recognized as a deduction from equity.

Impairment of non-derivative financial assets

Impairment of non-derivative financial assets

Financial assets are assessed at each reporting date to determine whether there is objective evidence of impairment.

Objective evidence that financial assets are impaired includes:

●

default or delinquency by a debtor;

●

indications that a debtor or issuer will enter bankruptcy;

●

adverse changes in the payment status of borrowers or issuers;

●

the disappearance of an active market for a security; or

●

observable data indicating that there is measurable decrease in expected cash flows from a group of financial assets.

Financial assets measured at amortized cost

Derivative Financial Instruments

Derivative Financial Instruments

Income tax

Income tax

Current tax

Deferred tax

●

temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss;

●

taxable temporary differences arising on the initial recognition of goodwill.

Employee benefits

Employee benefits

Share-based compensation

Share-based compensation

Valuation of share options

Provisions

Provisions

Leases

Leases

Earnings/(loss) per share

Earnings/(loss) per share

Statement of compliance

Statement of compliance

The interim condensed consolidated financial statements were authorized for issuance by the Company’s Audit Committee on November 13, 2018.

Statement of compliance

The interim condensed consolidated financial statements were authorized for issuance by the Company’s Audit Committee on November 13, 2018.

Functional and reporting currency

Functional and reporting currency

These consolidated financial statements are presented in Swiss Francs (“CHF”), which is the Company’s functional (“functional currency”) and the Group’s reporting currency.

Considering reorganization/Merger

Considering reorganization/Merger

Related Party Transaction

Related Party Transaction

New standards, amendments and interpretations adopted by the Group

New standards, amendments and interpretations adopted by the Group

The Group has not early adopted any standard, interpretation or amendment that was issued, but is not yet effective.

Basis of measurement

Basis of measurement

●

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date

●

Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

●

Level 3 inputs are unobservable inputs for the asset or liability.

Use of estimates and judgments

Use of estimates and judgments

Information about judgments made in applying accounting policies that have the most significant effects on the amounts recognized in the consolidated financial statements are described below.

Development expenditures

Development expenditures

Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure of closing and average exchange rates for the most significant foreign currencies

Closing rates for the most significant foreign currencies relative to CHF:

Currency		Geographical area	Reporting entities		December 31, 2017		December 31, 2016		December 31, 2015
CHF	Swiss Franc	Switzerland		3		1.0000		1.0000		1.0000
USD	Dollar	United States		1		0.9725		1.0196		1.0014
EUR	Europe	Europe		1		1.1713		1.0723		1.0875

Average exchange rates for the year for the most significant foreign currencies relative to CHF:

Currency		Geographical area	Reporting entities		2017		2016		2015
CHF	Swiss Franc	Switzerland		3		1.0000		1.0000		1.0000
USD	Dollar	United States		1		0.9849		0.9855		0.9613
EUR	Europe	Europe		1		1.1116		1.0901		1.0659

Disclosure of applicable estimated useful lives

The applicable estimated useful lives are as follows:

Production equipment		5 years
Office furniture and electronic data processing equipment (“EDP”)		3 years
Leasehold improvements		5 years

Financial Instruments and Risk Management (Tables)

12 Months Ended

Dec. 31, 2017

Financial Instruments and Risk Management/Loan and warrant [Abstract]

Disclosure of the carrying amounts of financial assets

Financial assets
	December 31, 2017		December 31, 2016
Cash and cash equivalents		14,973,369		32,422,222
Loans and receivables
Other receivables		79,840		134,900
Total financial assets		15,053,209		32,557,122

Disclosure of the carrying amounts of financial liabilities

Financial liabilities
At amortized cost
Trade and other payables	1,200,820	1,837,997
Accrued expenses	4,395,609	4,652,033
Loan	10,126,406	12,364,204
At fair value through profit and loss
Derivative financial instruments	1,836,763	117,132
Total financial liabilities	17,559,598	18,971,366

Disclosure of remaining contractual maturities of derivative financial liabilities

	Carrying amount		Less than 3 months		Between 3 months and 2 years		2 years and later		Total
December 31, 2017
Trade and other payables		1,200,820		1,200,820		—		—		1,200,820
Accrued expenses		4,395,609		4,395,609		—		—		4,395,609
Loan and borrowings		10,126,406		1,349,531		9,446,716		1,166,225		11,962,472
Derivative financial instruments		1,836,763		—		—		1,836,763		1,836,763
Total		17,559,598		6,945,960		9,446,716		3,002,988		19,395,664

	Carrying amount		Less than 3 months		Between 3 months and 2 years		2 years and later		Total
December 31, 2016
Trade and other payables		1,837,997		1,837,997		—		—		1,837,997
Accrued expenses		4,652,033		3,632,752		1,019,281		—		4,652,033
Loan and borrowings		12,364,204		311,013		8,725,772		6,834,249		15,871,034
Derivative financial instruments		117,132		—		—		117,132		117,132
Total		18,971,366		5,781,762		9,745,053		6,951,381		22,478,196

Disclosure of fair value measurement of liabilities

Financial assets / liabilities	Fair values as at
	December 31, 2017	December 31, 2016	Fair value hierarchy	Valuation technique(s) and key input(s)
Derivative financial liabilities	Liability 1,836,763	Liability 117,132	Level 2	Black-Scholes option pricing model The share price is determined by our NASDAQ quoted-price. The strike price and maturity are coming from the contract. The volatility assumption is driven by our historic quoted share price and the risk free rate is estimated based on observable yield curves at the end of each reporting period.

						Non-cash changes
	01.01.2017		Financing Cash Flows ¹⁾			Fair value revaluation			Other changes ²⁾			31.12.2017
Derivative financial instrument		117,132		5,091,817			(3,372,186	)		—			1,836,763
Loans		12,364,204		(2,087,076	)		—			(150,722	)		10,126,406
Total		12,481,336		3,004,741			(3,372,186	)		(150,722	)		11,963,169

¹⁾

The financing cash flows are from loan repayment and from issuance of new derivative

²⁾

Internal rate of return changes and fx-difference

Disclosure of maximum exposure to credit risk

The Group’s maximum exposure to credit risk is represented by the carrying amount of each financial asset in the consolidated statement of financial position:

	December 31, 2017		December 31, 2016
Financial assets
Cash and cash equivalents		14,973,369		32,442,222
Other receivables		79,840		134,900
Total		15,053,209		32,577,122

Disclosure of quantitative data about the exposure of financial assets and liabilities to currency risk

The summary of quantitative data about the exposure of the Group’s financial assets and liabilities to currency risk was as follows:

	2017						2016
	USD			EUR			USD			EUR
	(in CHF)
Cash and cash equivalent		13,901,698			116,942			31,124,874			444,075
Trade and other payables		(365,999	)		(426,050	)		(501,249	)		(847,892	)
Accrued expenses		(1,750,752	)		(1,692,946	)		(1,031,096	)		(2,964,552	)
Loan and borrowings		(10,126,406	)		—			(12,364,204	)		—
Derivative financial instruments		(1,836,763	)		—			(117,132	)		—
Net statement of financial position exposure-asset/(liability)		(178,222	)		(2,002,054	)		17,111,193			(3,368,369	)

Segment Information (Tables)

12 Months Ended

Dec. 31, 2017

Operating Segments [Abstract]

Disclosure of operating segments

The Group’s non-current assets by the Company’s country of domicile were as follows:

December 31,

2017

December 31,

2016

Switzerland

1,958,709

1,966,592

Total

1,958,709

1,966,592

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2017

Property, plant and equipment [Abstract]

Disclosure of detailed information about property, plant and equipment

	Production equipment			Office furniture and EDP			Leasehold improvements			Total
At cost
As of January 1, 2016		283,499			208,712			17,132			509,343
Additions		—			24,994			219,330			244,324
As of December 31, 2016		283,499			233,706			236,462			753,667
Additions		6,389			—			—			6,389
As of December 31, 2017		289,888			233,706			236,462			760,056
Accumulated depreciation
As of January 1, 2016		(127,629	)		(149,873	)		(9,271	)		(286,773	)
Charge for the year		(56,700	)		(33,837	)		(7,063	)		(97,600	)
As of December 31, 2016		(184,329	)		(183,710	)		(16,334	)		(384,373	)
Charge for the year		(53,594	)		(21,918	)		(47,272	)		(122,784	)
As of December 31, 2017		(237,923	)		(205,628	)		(63,606	)		(507,157	)
Net book value
As of December 31, 2016		99,170			49,996			220,128			369,294
As of December 31, 2017		51,965			28,078			172,856			252,899

Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2017

Intangible Assets [Abstract]

Disclosure of detailed information about intangible assets

	Licenses		IP & Data rights		Total
At cost
As of January 1, 2016		1,482,520		—		1,482,520
As of December 31, 2016		1,482,520		—		1,482,520
As of December 31, 2017		1,482,520		146,580		1,629,100
Accumulated amortization and impairment losses
As of December 31, 2016		—		—		—
As of December 31, 2017		—		—		—
Net book value
As of December 31, 2016		1,482,520		—		1,482,520
As of December 31, 2017		1,482,520		146,580		1,629,100

Other Receivables (Tables)

12 Months Ended

Dec. 31, 2017

Other Receivables [Abstract]

Disclosure of Other Receivables

	December 31, 2017		December 31, 2016
Value added tax receivable		63,452		132,570
Withholding tax receivable		18,115		23,644
Deposit credit cards		79,840		79,900
Other		79,874		60,417
Total other receivables		241,281		296,531

Prepayments (Tables)

12 Months Ended

Dec. 31, 2017

Prepayments [Abstract]

Disclosure of Prepayments

	December 31, 2017		December 31, 2016
Advance payments to supplier		442,828		759,716
Clinical projects and related activities		—		41,681
Insurance		200,246		151,198
Other		9,839		—
Total prepayments		652,913		952,595

Cash and Cash Equivalents (Tables)

12 Months Ended

Dec. 31, 2017

Cash and Cash Equivalents [Abstract]

Disclosure of Detailed Information for Cash and Cash Equivalents

	December 31, 2017		December 31, 2016
Cash in bank accounts		14,972,761		32,441,968
Cash on hand		608		254
Total cash and cash equivalents		14,973,369		32,442,222

Capital and Reserves (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2018

Dec. 31, 2017

Capital and Reserves [Abstract]

Schedule of issued share capital

	Common Shares Number
	2018			2017
As of January 1		48,373,890			34,329,704
Common shares issued for capital increase with a nominal value of CHF 0.40 each		12,800,000			10,000,000
Adjustment during the Merger:
Issuance of Auris NewCo Shares		6,117,388			—
Cancellation of Auris OldCo Shares		(61,173,890	)		—
Common shares issued for capital increase with a nominal value of CHF 0.02 each		17,948,717			—
Shares outstanding after Merger on March 13, 2018		24,066,105			—
Total, as of September 30, 2018		24,066,105			44,329,704

	December 31, 2017				December 31, 2016
	Number		CHF		Number		CHF
Common shares with a nominal value of CHF 0.40 each		48,373,890		19,349,556		34,329,704		13,731,881
Total		48,373,890		19,349,556		34,329,704		13,731,881

	Common Shares (Number)
	2017		2016
As of January 1		34,329,704		34,303,891
Common shares issued or for stock options exercises with a nominal value of CHF 0.40 each
Common shares issued for the follow-on offering with a nominal value of CHF 0.40 each		14,044,186
Restricted shares issue for bonus purposes nominal value of CHF 0.40 each		—		25,813
Total, as of December 31		48,373,890		34,329,704

Share Based Compensation (Tables)

12 Months Ended

Dec. 31, 2017

Share based payments [Abstract]

Disclosure of key terms and conditions related to grants

The key terms and conditions related to the grants under these programs are as at December 31, 2017 as follows:

Plan	Number of options outstanding		Vesting conditions	Contractual life of option
Stock option Plan A		50,000	3 years’ service from grant date	5 years
Stock option Plan C		121,250	4 years’ service from grant date	6 years
Equity Incentive Plan Board		368,200	1 year service from grant date	8 years
Equity Incentive Plan Employees/Board*		856,045	2 years’ service from grant date (50%)	8 years
Equity Incentive Plan Employees/Board*		856,045	3 years’ service from grant date (50%)	8 years

25,000 options issued to Bettina Stubinski, the former Chief Medical Officer of the Company, have vested early, on December 29, 2016 and expired on March 29, 2017.

Disclosure of the fair value of options measured based on the Black-Scholes formula

The fair value of the options was measured based on the Black-Scholes formula.

	Stock Option Plan
	Equity Incentive Plan 2017	Equity Incentive Plan 2017	Equity Incentive Plan 2016	Equity Incentive Plan 2016
Fair value at grant date	USD 0.198 (1 year vesting)(1)	USD 0.233 (1 year vesting)(2)	USD 0.308 (1 year vesting)(1)	USD 1.094 (1 year vesting)(2)
	USD 0.287 (2 year vesting)(1)	USD 0.335 (2 year vesting)(2)	USD 0.472 (2 year vesting)(1)	USD 1.560 (2 year vesting)(2)
	USD 0.352 (3 year vesting)(1)	USD 0.406 (3 year vesting)(2)	USD 0.583 (3 year vesting)(1)	USD 1.888 (3 year vesting)(2)
Share price at grant date	USD 0.76	USD 0.72	USD 1.03	USD 3.66
Exercise price	USD 0.82	USD 0.82	USD 1.39	USD 3.92
Expected volatility	72.85%	93.01%	100.93%	82.00%
Expected life	1, 2 and 3 years	1, 2 and 3 years	1, 2 and 3 years	1, 2 and 3 years
Expected dividends	—	—	—	—
Risk free interest rate	2.38%	2.19%	1.84%	1.83%

(1)

October grants for the respective year

(2)

April grants for the respective year

Disclosure of the number and weighted average exercise prices of options

The number and weighted average exercise prices (in CHF) of options under the share option programs for Stock Option Plan A, Stock Option Plan C and the EIP are as follows:

	2017							2016
	Number of options			Weighted average exercise price		Weighted average remaining term		Number of options			Weighted average exercise price		Weighted average remaining term
Outstanding at January 1		1,038,140			3.36		6.14		629,010			4.92		5.42
Expired during the year		(67,500	)		—		—		(17,500	)		—		—
Forfeited during the year		(637,200	)		—		—		(129,030	)		—		—
Exercised during the year		—			—		—		—			—		—
Granted during the year		1,918,100			0.82		7.70		555,660			1.99		7.81
Outstanding at December 31		2,251,540			1.74		6.88		1,038,140			3.36		6.14
Exercisable at December 31		326,510			4.48		4.24		199,005			4.56		3.11

Trade and Other Payables (Tables)

12 Months Ended

Dec. 31, 2017

Accrued Expenses/Trade and Other Payables [Abstract]

Components of trade and other payables

	December 31, 2017		December 31, 2016
Trade accounts payable – third parties		1,032,557		1,733,319
Other		168,263		104,678
Total trade and other payables		1,200,820		1,837,997

Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2017

Accrued Expenses/Trade and Other Payables [Abstract]

Components of accrued expenses

	December 31, 2017		December 31, 2016
Accrued research and development costs including milestone payments		4,060,048		4,307,089
Professional fees		227,363		316,470
Accrued vacation & overtime		69,455		115,749
Employee benefits incl. share based payments		217,649		138,960
Board of Directors fees		—		1,529
Other		108,198		26,945
Total accrued expenses		4,682,713		4,906,742

Research and Development Expense (Tables)

12 Months Ended

Dec. 31, 2017

Research and Development Expense/General and Administrative Expense/Finance Income and Finance Expense [Abstract]

Components of research and development expense

	December 31, 2017		December 31, 2016		December 31, 2015
Pre-clinical projects		642,821		546,429		468,326
Clinical projects		12,365,768		16,639,304		20,808,025
Drug manufacturing and substance		2,027,184		2,608,814		1,866,148
Employee benefits and expenses		2,773,516		2,854,624		2,140,664
Lease expenses		111,680		84,344		42,953
Patents and trademarks		603,892		941,836		824,201
Regulatory projects		632,387		1,043,287		331,822
Depreciation tangible assets		53,594		58,125		54,037
Total research and development expense		19,210,842		24,776,763		26,536,176

General and Administrative Expense (Tables)

12 Months Ended

Dec. 31, 2017

Research and Development Expense/General and Administrative Expense/Finance Income and Finance Expense [Abstract]

Components of general and administrative expense

	December 31, 2017		December 31, 2016			December 31, 2015
Employee benefits and expenses		2,097,853		2,174,543			1,502,900
Business development		161,985		45,649			72,562
Travel expenses		199,484		158,774			257,454
Administration expenses		2,522,217		2,969,796			2,386,791
Lease expenses		81,277		63,695			59,665
Depreciation tangible assets		69,190		39,475			38,740
Capital tax expenses		18,403		(5,420	)		23,458
Total general and administrative expenses		5,150,409		5,446,512			4,341,570

Employee Benefits (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2018

Dec. 31, 2017

Employee Benefits [Abstract]

Disclosure of defined benefit plan expense recognized in profit or loss

	Nine months ended
	September 30, 2018		September 30, 2017
Salaries		2,119,880		2,971,707
Pension costs		302,748		277,554
Share based compensation expense		108,399		259,561
Other employee costs and social benefits		91,225		251,000
Total employee benefits		2,622,252		3,759,822

	December 31, 2017			December 31, 2016		December 31, 2015
Salaries		3,761,171			3,662,180		2,833,741
Pension costs		378,588			342,805		282,517
Other social benefits		277,468			301,537		191,079
Share based payments costs		354,851			290,783		311,671
Recruitment costs		125,731			391,035		—
Other personnel expenditures		(26,439	)		40,827		24,557
Total employee benefits		4,871,370			5,029,167		3,643,565

Disclosure of net defined benefit liability (asset)

Change in defined benefit obligation

	2017			2016
Defined benefit obligation at January 1		7,122,841			5,427,776
Service costs		348,172			319,173
Plan participants’ contribution		236,074			218,275
Interest cost		50,494			62,916
Actuarial losses		60,781			417,937
Transfer-out amounts		(440,950	)		(1,276,315	)
Transfer-in amounts of new employees		622,205			1,953,079
Defined benefit obligation at December 31		7,999,617			7,122,841

Change in fair value of plan assets

	2017			2016
Fair value of plan assets at January 1		5,030,407			3,851,943
Interest income		37,500			47,994
Return on plan assets excluding interest income		332,759			23,835
Employer contributions		236,074			220,306
Plan participants’ contributions		236,074			218,275
Transfer-out amounts		(440,950	)		(1,276,315	)
Transfer-in amounts of new employees		622,205			1,953,079
Administration expense		(17,422	)		(8,710	)
Fair value of plan assets at December 31		6,036,647			5,030,407

Net defined benefit liability recognized in the statement of financial position

	December 31, 2017			December 31, 2016
Present value of funded defined benefit obligation		7,999,617			7,122,841
Fair value of plan assets		(6,036,647	)		(5,030,407	)
Net defined benefit liability		1,962,970			2,092,434

Disclosure of defined benefit plans

Defined Benefit Cost

	2017		2016		2015
Service cost		348,172		319,173		261,778
Net interest expense		12,994		14,922		14,873
Administration expense		17,422		8,710		5,866
Total defined costs for the year recognized in profit or loss		378,588		342,805		282,517

Remeasurement of the Defined Benefit Liability

	2017			2016			2015
Actuarial loss (gain) arising from changes in financial assumption		(150,552	)		412,396			(167,623	)
Actuarial loss arising from experience adjustments		211,331			264,417			175,375
Actuarial gain arising from demographic assumptions		—			(258,876	)		—
Return on plan assets excluding interest income		(332,759	)		(23,835	)		46,164
Total defined benefit cost for the year recognized in the other comprehensive loss		(271,980	)		394,102			53,916

Assumptions

	2017			2016			2015
At December 31
Discount rate		0.80	%		0.70	%		1.10	%
Future salary increase		1.10	%		1.10	%		1.10	%
Pension indexation		0.00	%		0.00	%		0.00	%
Mortality and disability rates		BVG2015G			BVG2015G			BVG 2010G

Disclosure of sensitivity analysis for actuarial assumptions

	December 31,
	2017			2016
Change in assumption		0.25 % increase			0.25 % increase
Discount rate		(354,477	)		(324,057	)
Salary increase		49,707			42,181
Pension indexation		189,965			201,221
Change in assumption		+ 1 year			+ 1 year
Life expectancy		182,977			167,161

Finance Income and Finance Expense (Tables)

12 Months Ended

Dec. 31, 2017

Research and Development Expense/General and Administrative Expense/Finance Income and Finance Expense [Abstract]

Components of finance income (cost)

	2017		2016			2015
Interest income		53,570		67,565			36,562
Net foreign currency exchange gain		1,912,681		843,950			1,806,206
Revaluation gain from derivative financial instruments		3,372,186		291,048			—
Total finance income		5,338,437		1,202,563			1,842,768
Interest expense (incl. Bank charges)		1,640,394		828,547			7,985
Net foreign currency exchange loss		2,737,273		944,047			662,100
Total finance expense		4,377,667		1,772,594			670,085
Finance income/(expense), net		960,770		(570,031	)		1,172,683

Taxation (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2018

Dec. 31, 2017

Taxation [Abstract]

Disclosure of income tax expense

The Group’s income tax expense recognized in the condensed interim consolidated statement of profit or loss is presented as follows:

	Nine months ended
	September 30, 2018		September 30, 2017
Deferred income tax expense		—		—
Deferred income tax gain		26,179		24,573
Total income tax gain		26,179		24,573

The Group’s income tax expense recognized in the consolidated statement of profit or loss and other comprehensive loss was as follows:

	2017			2016		2015
Deferred income tax expense		(21,415	)		—		(32,761	)
Deferred income tax gain		39,188			131,055		32,761
		17,773			131,055		—

Disclosure of major components of tax expense (income)

	2017			2016			2015
Reconciliation
Loss before income tax		(24,427,247	)		(30,793,306	)		(29,705,063	)
Income tax at statutory tax rates applicable to results in the respective countries		5,311,030			6,629,237			6,493,569
Effect of unrecognized temporary differences		193,598			(27,072	)		(105,395	)
Effect of unrecognized taxable losses		(5,429,935	)		(6,360,837	)		(6,438,609	)
Effect of previously unrecognized deferred tax asset		39,189			131,055			—
Effect of expenses deductible for tax purposes		9,696			2,505			—
Effect of expenses not considerable for tax purposes		—			23,716			—
Effect of impact from application of different tax rates		(105,805	)		(267,695	)		—
Effect of unrecognized taxable losses in equity		—			146			50,435
Income tax gain		17,773			131,055			—

Disclosure of deferred taxes details

The tax effect of taxable temporary differences that give rise to deferred income tax liabilities or to deferred income tax assets as of December 31 is presented below:

	December 31, 2017			December 31, 2016
Deferred Tax Liabilities
Intangible assets		(349,052	)		(327,637	)
Hercules Loan Facility		(47,477	)		(76,390	)
Total		(396,529	)		(404,027	)

	December 31, 2017			December 31, 2016
Deferred Tax Assets
Net operating loss (NOL)		217,720			207,445
Total		217,720			207,445
Deferred Tax, net		(178,809	)		(196,582	)

Deferred Tax 2017	Opening Balance			Recognized in Profit or Loss			Recognized in Equity		Closing Balance
Intangible assets		(327,637	)		(21,415	)		—		(349,052	)
Hercules Loan Facility		(76,390	)		28,913			—		(47,477	)
Net operating loss (NOL)		207,445			10,275			—		217,720
Total		(196,582	)		17,773			—		(178,809	)

Deferred Tax 2016	Opening Balance			Recognized in Profit or Loss			Recognized in Equity		Closing Balance
Intangible assets		(327,637	)		—			—		(327,637	)
Hercules Loan Facility		—			(76,390	)		—		(76,390	)
Net operating loss (NOL)		—			207,445			—		207,445
Total		(327,637	)		131,055			—		(196,582	)

Disclosure of temporary difference, unused tax losses and unused tax credits

The tax effect of taxable temporary differences that give rise to deferred income tax liabilities or to deferred income tax assets as of September 30, 2018 and 2017 is presented as follows:

	September 30, 2018			September 30, 2017
Deferred Tax liabilities
Intangible assets		(354,117	)		(349,052	)
Hercules Loan & Warrant		(5,202	)		(53,309	)
Derivatives financial instrument		(19,759	)		—
Total		(379,078	)		(402,361	)
Deferred Tax asset
Net operating loss (NOL)		226,448			230,352
Total		226,448			230,352
Deferred Tax, net		(152,630	)		(172,009	)

The Group’s tax loss carry-forwards with their expiry dates are as follows:

	December 31, 2017		December 31, 2016
Within 1 year		1,754,398		1,859,601
Between 1 and 3 years		31,089,191		9,928,391
Between 3 and 7 years		108,055,089		102,542,641
More than 7 years		1,072,260		1,087,543
Total		141,970,938		115,418,176

The tax effect of the major unrecognized temporary differences and loss carry-forwards is presented in the table below:

	December 31, 2017		December 31, 2016
Deductible temporary differences
Employee benefit plan		433,816		450,227
Stock option plans		400,764		—
Total potential tax assets		834,580		450,227
Taxable unrecognized temporary differences
Property and equipment		—		—
Total unrecognized potential tax liabilities		—		—
Offsetting potential tax liabilities with potential tax assets		—		—
Net potential tax assets from temporary differences not recognized		834,580		450,227
Potential tax assets from loss carry-forwards not recognized		29,959,963		25,082,968
Total potential tax assets from loss carry-forwards and temporary differences not recognized		30,794,543		25,533,195

Loss Per Share (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2018

Dec. 31, 2017

Loss Per Share [Abstract]

Schedule of earnings per share

	Three months ended						Nine months ended
	September 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017
Loss attributable to owners of the Company		(2,980,517	)		(6,012,481	)		(7,805,535	)		(19,823,881	)
Weighted average number of shares outstanding		20,944,590			4,432,970			10,987,582			4,260,176
Basic and diluted loss per share		(0.14	)		(1.36	)*		(0.71	)		(4.65	)*

The basic and diluted loss per share for the three and nine months ended September 30, 2017 is revised to reflect the reverse-split ratio of 10 to 1 following the Merger on March 13, 2018.

	December 31, 2017			December 31, 2016			December 31, 2015
Loss attributable to owners of the Company		(24,409,474	)		(30,662,251	)		(29,705,063	)
Weighted average number of shares outstanding		43,741,870			34,329,280			32,299,166
Basic and diluted loss per share		(0.56	)		(0.89	)		(0.92	)

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2017

Leases1 [Abstract]

Disclosure of maturity analysis of operating lease payments

The future minimum lease payments under non-cancellable operating leases that are not accounted for in the statement of financial position were as follows:

	December 31, 2017		December 31, 2016
Within one year		161,110		161,110
Between one and five years		446,051		607,161
Total		607,161		768,271

Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2017

Related Party [Abstract]

Disclosure of compensation of key management and Board of Directors

Following the IPO, the Board’s remuneration policy was modified in that all non-executive directors received remuneration for their work as members of the Board as well as of the newly constituted Compensation Committee and Audit Committee.

	Executive Management						Board of Directors						Total
	2017		2016		2015		2017		2016		2015		2017		2016		2015
Short term benefits		1,576,864		1,554,850		1,363,796		280,762		325,493		268,810		1,857,626		1,880,343		1,632,606
Post-employee benefits years		94,839		88,838		78,721		—		—		—		94,839		88,838		78,721
Share-based payment charge		190,659		217,981		176,691		72,647		103,380		61,017		263,306		321,361		237,708
Total		1,862,362		1,861,669		1,619,208		353,409		428,873		329,827		2,215,771		2,290,542		1,949,035

Reporting Entity (Details)		9 Months Ended	12 Months Ended
Reporting Entity (Details)	Mar. 13, 2018 CHF (SFr) SFr / shares shares	Sep. 30, 2018 CHF (SFr)	Dec. 31, 2017 CHF (SFr) SFr / shares shares	Sep. 30, 2018 USD ($)	Sep. 30, 2018 EUR (€)	Dec. 31, 2017 USD ($) shares	Dec. 31, 2017 EUR (€) shares	Dec. 31, 2016 CHF (SFr) shares	Dec. 31, 2015 shares
Disclosure of subsidiaries [line items]
Share capital		SFr 481,322	SFr 19,349,556					SFr 13,731,881
Number of shares outstanding \| shares			48,373,890			48,373,890	48,373,890	34,329,704	34,303,891
Nominal value of common shares (in CHF per share) \| SFr / shares			SFr 0.40
Auris Medical AG [Member]
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary (as a percent)		100.00%	100.00%
Nominal share capital		SFr 2,500,000	SFr 2,500,000
Otolanum AG [Member]
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary (as a percent)		100.00%	100.00%
Nominal share capital		SFr 100,000	SFr 100,000
Auris Medical Inc. [Member]
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary (as a percent)		100.00%	100.00%
Nominal share capital				$ 15,000	€ 100	$ 15,000
Auris Medical Ltd. [Member]
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary (as a percent)		100.00%	100.00%
Nominal share capital \| €							€ 100
Auris Medical NewCo Holding AG [Member] \| Merger
Disclosure of subsidiaries [line items]
Share capital	SFr 122,347.76
Number of shares outstanding \| shares	6,117,388
Nominal value of common shares (in CHF per share) \| SFr / shares	SFr 0.02
Reverse stock split, conversion ratio, number of original shares held for 1 share in Auris NewCo	10

Basis of Preparation (Details) - CHF (SFr)	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax assets	SFr 226,448	SFr 217,720	SFr 230,352	SFr 207,445
Net operating loss (NOL) [Member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax assets	SFr 226,448	SFr 217,720	SFr 230,352	SFr 207,445

Significant Accounting Policies (Details)	12 Months Ended
Significant Accounting Policies (Details)	Dec. 31, 2017 reporting_entit	Dec. 31, 2016	Dec. 31, 2015
Switzerland [Member]
Disclosure of geographical areas [line items]
Reporting entities	3
United States [Member]
Disclosure of geographical areas [line items]
Reporting entities	1
Europe [Member]
Disclosure of geographical areas [line items]
Reporting entities	1
Swiss Franc [Member] \| Switzerland [Member]
Disclosure of geographical areas [line items]
Closing rate	1.0000	1.0000	1.0000
Average exchange rate	1.0000	1.0000	1.0000
Dollar [Member] \| United States [Member]
Disclosure of geographical areas [line items]
Closing rate	0.9725	1.0196	1.0014
Average exchange rate	0.9849	0.9855	0.9613
Europe [Member] \| Europe [Member]
Disclosure of geographical areas [line items]
Closing rate	1.1713	1.0723	1.0875
Average exchange rate	1.1116	1.0901	1.0659

Significant Accounting Policies (Details 1)	12 Months Ended
Significant Accounting Policies (Details 1)	Dec. 31, 2017
Production equipment [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Useful life	5 years
Office furniture and electronic data processing equipment ("EDP") [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Useful life	3 years
Leasehold improvements [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Useful life	5 years

Significant Accounting Policies (Details Textual) - segment	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of operating segments	1
Licenses [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Estimated useful life	10 years
Stock Option Plan A [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Vesting period	3 years
Stock Option Plan C [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Vesting period	4 years
Tranche 1 [Member] \| Equity Incentive Plan [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Vesting period	2 years
Vesting percentage	50.00%
Tranche 2 [Member] \| Equity Incentive Plan [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Vesting period	3 years
Vesting percentage	50.00%
Board of Directors [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Vesting period	1 year	1 year

Financial Instruments and Risk Management (Details) - CHF (SFr)	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Financial Assets And Liabilities [Line Items]
Financial assets	SFr 15,053,209	SFr 32,557,122
Financial liabilities	17,559,598	18,971,366
Trade and other payables [Member] \| At amortized cost [Member]
Disclosure Of Financial Assets And Liabilities [Line Items]
Financial liabilities	1,200,820	1,837,997
Accrued expenses [Member] \| At amortized cost [Member]
Disclosure Of Financial Assets And Liabilities [Line Items]
Financial liabilities	4,395,609	4,652,033
Loan [Member] \| At amortized cost [Member]
Disclosure Of Financial Assets And Liabilities [Line Items]
Financial liabilities	10,126,406	12,364,204
Derivative financial instruments [Member] \| At fair value through profit and loss [Member]
Disclosure Of Financial Assets And Liabilities [Line Items]
Financial liabilities	1,836,763	117,132
Cash and cash equivalents [Member]
Disclosure Of Financial Assets And Liabilities [Line Items]
Financial assets	14,973,369	32,422,222
Other receivables [Member]
Disclosure Of Financial Assets And Liabilities [Line Items]
Financial assets	SFr 79,840	SFr 134,900

Financial Instruments and Risk Management (Details 2) - CHF (SFr)	Dec. 31, 2017	Dec. 31, 2016
Disclosure of fair value measurement of liabilities [line items]
Financial liabilities	SFr 17,559,598	SFr 18,971,366
Level 2 [Member] \| Derivative financial instruments [Member]
Disclosure of fair value measurement of liabilities [line items]
Financial liabilities	SFr 1,836,763	SFr 117,132

- Definition

The amount of liabilities that are: (a) a contractual obligation: (i) to deliver cash or another financial asset to another entity; or (ii) to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the entity; or (b) a contract that will, or may be, settled in the entity’s own equity instruments and is: (i) a non-derivative for which the entity is, or may be, obliged to deliver a variable number of the entity’s own equity instruments; or (ii) a derivative that will, or may be, settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments. For this purpose, rights, options or warrants to acquire a fixed number of the entity’s own equity instruments for a fixed amount of any currency are equity instruments if the entity offers the rights, options or warrants pro rata to all of its existing owners of the same class of its own non-derivative equity instruments. Also, for those purposes the entity’s own equity instruments do not include puttable financial instruments that are classified as equity instruments in accordance with paragraphs 16A-16B of IAS 32, instruments that impose on the entity an obligation to deliver to another party a pro rata share of the net assets of the entity only on liquidation and are classified as equity instruments in accordance with paragraphs 16C-16D of IAS 32, or instruments that are contracts for the future receipt or delivery of the entity’s own equity instruments. As an exception, an instrument that meets the definition of a financial liability is classified as an equity instrument if it has all the features and meets the conditions in paragraphs 16A-16B or paragraphs 16C-16D of IAS 32. [Refer: Financial instruments, class [member]; Financial assets; Derivatives [member]]

+ References + Details

Financial Instruments and Risk Management (Details 3)

12 Months Ended

Dec. 31, 2017

CHF (SFr)

Reconciliation of changes in fair value measurement, liabilities [abstract]

SFr 21,515,091

Reconciliation of changes in fair value measurement, liabilities [abstract]

19,988,481

At fair value [Member]

12,481,336

Financing cash flows

3,004,741

^[1]

Fair value revaluation

(3,372,186)

Other changes

(150,722)

^[2]

At fair value [Member] | Derivative financial instruments [Member]

11,963,169

Reconciliation of changes in fair value measurement, liabilities [abstract]

117,132

Financing cash flows

5,091,817

^[1]

Fair value revaluation

(3,372,186)

Other changes

^[2]

At fair value [Member] | Loans [Member]

1,836,763

Reconciliation of changes in fair value measurement, liabilities [abstract]

12,364,204

Financing cash flows

(2,087,076)

^[1]

Fair value revaluation

Other changes

(150,722)

^[2]

Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]

SFr 10,126,406

[1]	The financing cash flows are from loan repayment and from issuance of new derivative
[2]	Internal rate of return changes and fx-difference

Financial Instruments and Risk Management (Details 4) - Credit risk [Member] - CHF (SFr)	Dec. 31, 2017	Dec. 31, 2016
Disclosure of credit risk exposure [line items]
Maximum exposure to credit risk	SFr 15,053,209	SFr 32,577,122
Cash and cash equivalents [Member]
Disclosure of credit risk exposure [line items]
Maximum exposure to credit risk	14,973,369	32,442,222
Other receivables [Member]
Disclosure of credit risk exposure [line items]
Maximum exposure to credit risk	SFr 79,840	SFr 134,900

Financial Instruments and Risk Management (Details 5) - Currency risk [Member] - CHF (SFr)	Dec. 31, 2017	Dec. 31, 2016
USD [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Net statement of financial position exposure-asset/(liability)	SFr (178,222)	SFr 17,111,193
EUR [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Net statement of financial position exposure-asset/(liability)	(2,002,054)	(3,368,369)
Cash and cash equivalents [Member] \| USD [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Net statement of financial position exposure-asset/(liability)	13,901,698	31,124,874
Cash and cash equivalents [Member] \| EUR [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Net statement of financial position exposure-asset/(liability)	116,942	444,075
Trade and other payables [Member] \| USD [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Net statement of financial position exposure-asset/(liability)	(365,999)	(501,249)
Trade and other payables [Member] \| EUR [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Net statement of financial position exposure-asset/(liability)	(426,050)	(847,892)
Accrued expenses [Member] \| USD [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Net statement of financial position exposure-asset/(liability)	(1,750,752)	(1,031,096)
Accrued expenses [Member] \| EUR [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Net statement of financial position exposure-asset/(liability)	(1,692,946)	(2,964,552)
Loan and borrowings [Member] \| USD [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Net statement of financial position exposure-asset/(liability)	(10,126,406)	(12,364,204)
Loan and borrowings [Member] \| EUR [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Net statement of financial position exposure-asset/(liability)
Derivative financial instruments [Member] \| USD [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Net statement of financial position exposure-asset/(liability)	(1,836,763)	(117,132)
Derivative financial instruments [Member] \| EUR [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Net statement of financial position exposure-asset/(liability)

Financial Instruments and Risk Management (Details Textual) - CHF (SFr)	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017	Dec. 31, 2016	Apr. 05, 2018	Jul. 19, 2016
Disclosure of nature and extent of risks arising from financial instruments [line items]
Drawn on term loan facility				SFr 5,000,000
Loan and Security Agreement, description	The loan matures on January 2, 2020 and bears interest at a minimum rate of 9.55% per annum, and is subject to the variability of the prime interest rate. The Company's exposure to interest rates on financial assets and financial liabilities is resulting from loan and cash at banks. As of December 31, 2017 an increase or decrease in interest rates on financial obligations by 50 basis points.
Interest rate risk [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Impact of increase or decrease in rate on net result		SFr 62,500	SFr 28,276
USD [Member] \| Currency risk [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Increase or decrease in rate (as a percent)		5.00%
Impact of increase or decrease in rate on net result		SFr 8,662	872,443
EUR [Member] \| Currency risk [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Increase or decrease in rate (as a percent)		5.00%
Impact of increase or decrease in rate on net result		SFr 117,320	SFr 180,595
Secured term loan facility [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Term loan facility (up to)					SFr 20,000,000.0
Drawn on term loan facility		SFr 10,126,406			SFr 12,500,000.0
Minimum [Member] \| Floating interest rate [Member] \| Secured term loan facility [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Interest rate per annum (as a percent)					9.55%

Segment Information (Details) - CHF (SFr)	Sep. 30, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure of operating segments [line items]
Non-current assets	SFr 1,977,058	SFr 1,958,709	SFr 1,966,592
Switzerland [Member]
Disclosure of operating segments [line items]
Non-current assets		SFr 1,958,709	SFr 1,966,592

Property and Equipment (Details) - CHF (SFr)	12 Months Ended
Property and Equipment (Details) - CHF (SFr)	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	SFr 369,294
Property, plant and equipment	252,899	SFr 369,294
At cost [Member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	753,667	509,343
Additions	6,389	244,324
Property, plant and equipment	760,056	753,667
Accumulated depreciation [Member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	(384,373)	(286,773)
Additions	(122,784)	(97,600)
Property, plant and equipment	(507,157)	(384,373)
Production equipment [Member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	99,170
Property, plant and equipment	51,965	99,170
Production equipment [Member] \| At cost [Member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	283,499	283,499
Additions	6,389
Property, plant and equipment	289,888	283,499
Production equipment [Member] \| Accumulated depreciation [Member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	(184,329)	(127,629)
Additions	(53,594)	(56,700)
Property, plant and equipment	(237,923)	(184,329)
Office furniture and EDP [Member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	49,996
Property, plant and equipment	28,078	49,996
Office furniture and EDP [Member] \| At cost [Member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	233,706	208,712
Additions		24,994
Property, plant and equipment	233,706	233,706
Office furniture and EDP [Member] \| Accumulated depreciation [Member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	(183,710)	(149,873)
Additions	(21,918)	(33,837)
Property, plant and equipment	(205,628)	(183,710)
Leasehold improvements [Member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	220,128
Property, plant and equipment	172,856	220,128
Leasehold improvements [Member] \| At cost [Member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	236,462	17,132
Additions		219,330
Property, plant and equipment	236,462	236,462
Leasehold improvements [Member] \| Accumulated depreciation [Member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	(16,334)	(9,271)
Additions	(47,272)	(7,063)
Property, plant and equipment	SFr (63,606)	SFr (16,334)

Intangible Assets (Details) - CHF (SFr)	12 Months Ended
Intangible Assets (Details) - CHF (SFr)	Dec. 31, 2017	Dec. 31, 2016	Sep. 30, 2018	Jul. 30, 2017	Dec. 31, 2015
Disclosure of detailed information about intangible assets [line items]
Intangible assets	SFr 1,629,100	SFr 1,482,520	SFr 1,663,763
Amortization expense
Impairment loss
At cost [Member]
Disclosure of detailed information about intangible assets [line items]
Intangible assets	1,629,100	1,482,520			SFr 1,482,520
Accumulated amortization [Member]
Disclosure of detailed information about intangible assets [line items]
Intangible assets
Licenses [Member]
Disclosure of detailed information about intangible assets [line items]
Intangible assets	1,482,520	1,482,520
Licenses [Member] \| At cost [Member]
Disclosure of detailed information about intangible assets [line items]
Intangible assets	1,482,520	1,482,520			1,482,520
Licenses [Member] \| Accumulated amortization [Member]
Disclosure of detailed information about intangible assets [line items]
Intangible assets
Licenses [Member] \| Accumulated impairment losses [Member]
Disclosure of detailed information about intangible assets [line items]
Intangible assets
IP and Data Rights [Member]
Disclosure of detailed information about intangible assets [line items]
Intangible assets	146,580
IP and Data Rights [Member] \| At cost [Member]
Disclosure of detailed information about intangible assets [line items]
Intangible assets	146,580
IP and Data Rights [Member] \| Accumulated amortization [Member]
Disclosure of detailed information about intangible assets [line items]
Intangible assets
IP and Data Rights [Member] \| Accumulated impairment losses [Member]
Disclosure of detailed information about intangible assets [line items]
Intangible assets
Intellectual property rights [Member]
Disclosure of detailed information about intangible assets [line items]
Intangible assets				SFr 146,580

Intangible Assets (Details Textual) - CHF (SFr)	12 Months Ended
Intangible Assets (Details Textual) - CHF (SFr)	Dec. 31, 2013	Sep. 30, 2018	Dec. 31, 2017	Jul. 30, 2017	Dec. 31, 2016
Disclosure of detailed information about intangible assets [line items]
Intangible assets		SFr 1,663,763	SFr 1,629,100		SFr 1,482,520
Licences [member]
Disclosure of detailed information about intangible assets [line items]
Intangible assets			SFr 1,482,520		SFr 1,482,520
Milestone payment intangible	SFr 1,125,000
Intellectual property rights [Member]
Disclosure of detailed information about intangible assets [line items]
Intangible assets				SFr 146,580

Other Receivables (Details) - CHF (SFr)	Sep. 30, 2018	Dec. 31, 2017	Dec. 31, 2016
Other Receivables [Abstract]
Value added tax receivable		SFr 63,452	SFr 132,570
Withholding tax receivable		18,115	23,644
Deposit credit cards		79,840	79,900
Other		79,874	60,417
Total other receivables	SFr 309,143	SFr 241,281	SFr 296,531

Prepayments (Details) - CHF (SFr)	Sep. 30, 2018	Dec. 31, 2017	Dec. 31, 2016
Prepayments [Abstract]
Advance payments to supplier		SFr 442,828	SFr 759,716
Clinical projects and related activities			41,681
Insurance		200,246	151,198
Other		9,839
Total prepayments	SFr 507,329	SFr 652,913	SFr 952,595

Cash and Cash Equivalents (Details) - CHF (SFr)	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash and Cash Equivalents [Abstract]
Cash in bank accounts		SFr 14,972,761		SFr 32,441,968
Cash on hand		608		254
Total cash and cash equivalents	SFr 5,257,881	SFr 14,973,369	SFr 20,198,415	SFr 32,442,222	SFr 50,237,300	SFr 56,934,325

Capital and Reserves (Details) - CHF (SFr)	9 Months Ended		12 Months Ended
Capital and Reserves (Details) - CHF (SFr)	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016	Jan. 23, 2018
Disclosure of classes of share capital [line items]
Nominal value of common shares (in CHF per share)			SFr 0.40
Number (in shares)			48,373,890	34,329,704	300,000
Value (CHF)	SFr 481,322		SFr 19,349,556	SFr 13,731,881
Reconciliation of number of shares outstanding [abstract]
Beginning balance (in shares)	48,373,890	34,329,704	34,329,704	34,303,891
Restricted shares issue for bonus purposes (in shares)			0	25,813
Ending balance (in shares)			48,373,890	34,329,704
Common shares issued for the follow-on offering
Reconciliation of number of shares outstanding [abstract]
Common shares issued (in shares)			14,044,186
Common shares
Disclosure of classes of share capital [line items]
Nominal value of common shares (in CHF per share)			SFr 0.40	SFr 0.40
Number (in shares)			48,373,890	34,329,704
Value (CHF)			SFr 19,349,556	SFr 13,731,881
Reconciliation of number of shares outstanding [abstract]
Beginning balance (in shares)	48,373,890	34,329,704	34,329,704
Common shares issued (in shares)	12,800,000	10,000,000
Ending balance (in shares)	24,066,105	44,329,704	48,373,890	34,329,704
Common shares \| Common shares issued for the follow-on offering
Disclosure of classes of share capital [line items]
Nominal value of common shares (in CHF per share)			SFr 0.40	SFr 0.40
Common shares \| Merger [Member]
Reconciliation of number of shares outstanding [abstract]
Common shares issued (in shares)	17,948,717
Ending balance (in shares)	24,066,105
Common shares \| Issuance of Auris NewCo Shares
Reconciliation of number of shares outstanding [abstract]
Common shares issued (in shares)	6,117,388
Common shares \| Cancellation of Auris OldCo Shares
Reconciliation of number of shares outstanding [abstract]
Common shares issued (in shares)	(61,173,890)

Capital and Reserves (Details Textual)								3 Months Ended		9 Months Ended		12 Months Ended
Capital and Reserves (Details Textual)	Oct. 16, 2017 CHF (SFr) shares	Oct. 10, 2017 CHF (SFr)	Oct. 10, 2017 USD ($) shares	Feb. 21, 2017 CHF (SFr) SFr / shares shares	Feb. 21, 2017 USD ($)	May 20, 2015 CHF (SFr) shares	May 20, 2015 USD ($) shares	Sep. 30, 2018 CHF (SFr) shares	Sep. 30, 2017 CHF (SFr) shares	Sep. 30, 2018 CHF (SFr) shares	Sep. 30, 2017 CHF (SFr) shares	Dec. 31, 2017 CHF (SFr) SFr / shares shares	Dec. 31, 2016 CHF (SFr) SFr / shares shares	Dec. 31, 2015 CHF (SFr) shares	Jan. 23, 2018 shares
Disclosure of classes of share capital [line items]
Number of shares issued (in shares) \| shares												48,373,890	34,329,704		300,000
Transaction costs recognized in equity										SFr 1,084,109	SFr 397,685	SFr 521,515		SFr 643,796
Transaction costs recognized in profit or loss								SFr 108,809		SFr 520,125	SFr 506,234	SFr 1,026,766
Nominal value (in CHF per share) \| SFr / shares												SFr 0.40
Share issue related cost													1,862	211,142
Offering costs associated with the follow-on													SFr 1,862	SFr 211,142
Common shares outstanding (in shares) \| shares												48,373,890	34,329,704	34,303,891
2018 Commitment Purchase Agreement [Member]
Disclosure of classes of share capital [line items]
Gross proceeds	SFr 1,446,150	SFr 1,594,611
Public offering
Disclosure of classes of share capital [line items]
Number of shares issued (in shares) \| shares						5,275,000	5,275,000
Gross proceeds				SFr 9,998,305	$ 10,000,000	SFr 21,700,000	$ 23,600,000
Transaction costs recognized in equity				397,685
Transaction costs recognized in profit or loss				SFr 506,234
Conversion ratio				0.70	0.70
Share issue related cost				SFr 903,919
Offering costs associated with the follow-on						SFr 643,796
Common shares
Disclosure of classes of share capital [line items]
Number of shares issued (in shares) \| shares												48,373,890	34,329,704
Nominal value (in CHF per share) \| SFr / shares												SFr 0.40	SFr 0.40
Common shares outstanding (in shares) \| shares								24,066,105	44,329,704	24,066,105	44,329,704	48,373,890	34,329,704
Common shares \| 2018 Commitment Purchase Agreement [Member]
Disclosure of classes of share capital [line items]
Share subscription agreement, subscription amount \| $			$ 13,500,000
Agreement term		30 months	30 months
Number of shares issued (in shares) \| shares	1,744,186		2,300,000
Gross proceeds	SFr 1,500,000		$ 1,630,415
Transaction costs recognized in equity	SFr 63,056	SFr 25,701
Transaction costs recognized in profit or loss		265,205
Commitment fee		290,400	$ 300,000
Commitment fee related to cash proceeds from issue of shares		35,073
Derecognition of commitment fee		SFr 255,327
Common shares \| Public offering
Disclosure of classes of share capital [line items]
Number of shares issued (in shares) \| shares				10,000,000
Gross proceeds				SFr 4,906,488
Nominal value (in CHF per share) \| SFr / shares				SFr 0.40
Warrants \| Public offering
Disclosure of classes of share capital [line items]
Number of shares issued (in shares) \| shares				10,000,000
Gross proceeds				SFr 5,091,817

Capital and Reserves (Details Textual 1) - CHF (SFr)	9 Months Ended		12 Months Ended
Capital and Reserves (Details Textual 1) - CHF (SFr)	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Jan. 23, 2018	Jan. 07, 2016
Disclosure of classes of share capital [line items]
Shares awarded and issued (in shares)			48,373,890	34,329,704		300,000
Nominal value (in CHF per share)			SFr 0.40
Payroll charge	SFr 108,399	SFr 259,561	SFr 354,851	SFr 290,783	SFr 311,671
Common shares
Disclosure of classes of share capital [line items]
Shares awarded and issued (in shares)			48,373,890	34,329,704
Nominal value (in CHF per share)			SFr 0.40	SFr 0.40
Restricted common shares \| Equity Incentive Plan [Member]
Disclosure of classes of share capital [line items]
Payroll charge					SFr 188,092
Restricted common shares \| Equity Incentive Plan [Member] \| Common shares
Disclosure of classes of share capital [line items]
Shares awarded and issued (in shares)							25,813
Nominal value (in CHF per share)							SFr 0.40
Payroll charge				SFr 188,092

Capital and Reserves (Details Textual 2)	1 Months Ended
Capital and Reserves (Details Textual 2)	Jun. 01, 2016 USD ($)	Dec. 31, 2017 SFr / shares	Dec. 31, 2016 SFr / shares	Jun. 01, 2016 SFr / shares
Disclosure of classes of share capital [line items]
Nominal value (in CHF per share)		SFr 0.40
Common shares
Disclosure of classes of share capital [line items]
Nominal value (in CHF per share)		SFr 0.40	SFr 0.40
Sales Agreement \| Common shares
Disclosure of classes of share capital [line items]
Nominal value (in CHF per share)				SFr 0.40
Aggregate offering price (up to) \| $	$ 35,000,000

Capital and Reserves (Details Textual 3) SFr / shares in Units, SFr in Thousands	Dec. 31, 2017 CHF (SFr) SFr / shares shares
Disclosure of classes of share capital [line items]
Authorized capital \| SFr	SFr 8,860
Nominal value (in CHF per share) \| SFr / shares	SFr 0.40
Board of Directors [Member]
Disclosure of classes of share capital [line items]
Registered shares (in shares) \| shares	22,150,000

Capital and Reserves (Details Textual 4)	12 Months Ended
Capital and Reserves (Details Textual 4)	Dec. 31, 2017 CHF (SFr) Share SFr / shares
Disclosure of classes of share capital [line items]
Nominal value (in CHF per share)	SFr 0.40
Execution of subscription rights
Disclosure of classes of share capital [line items]
Issuance of fully paid registered Common Shares that may increase share capital (up to) (in shares) \| Share	6,500,000
Nominal value (in CHF per share)	SFr 0.40
Maximum amount \| SFr	SFr 2,600,000
Execution of conversion rights in connection with warrants and convertible bondsexecution of conversion rights in connection with warrants and convertible bonds
Disclosure of classes of share capital [line items]
Issuance of fully paid registered Common Shares that may increase share capital (up to) (in shares) \| Share	15,650,000
Nominal value (in CHF per share)	SFr 0.40
Maximum amount \| SFr	SFr 6,260,000

Capital and Reserves (Details Textual 5)									1 Months Ended			9 Months Ended	12 Months Ended
Capital and Reserves (Details Textual 5)	May 02, 2018 CHF (SFr) shares	May 02, 2018 USD ($) shares	Mar. 13, 2018	Jan. 30, 2018 CHF (SFr) SFr / shares shares	Jan. 30, 2018 CHF (SFr) $ / shares	Jan. 23, 2018 CHF (SFr) shares	Oct. 10, 2017 CHF (SFr)	Feb. 21, 2017	Jul. 17, 2018 CHF (SFr) SFr / shares shares	Jul. 17, 2018 USD ($) $ / shares shares	Jun. 01, 2016 CHF (SFr) SFr / shares	Sep. 30, 2018 CHF (SFr) shares	Dec. 31, 2017 CHF (SFr) SFr / shares shares	Dec. 31, 2016 CHF (SFr) SFr / shares shares	Dec. 31, 2015 CHF (SFr) shares	Sep. 30, 2017 CHF (SFr) shares
Disclosure of classes of share capital [line items]
Number of shares outstanding \| shares													48,373,890	34,329,704	34,303,891
Nominal value												SFr 481,322.10				SFr 17,731,881.60
Reverse share split,description			The number of shares were reduced by the ratio of 10 to 1 (resulting in a "reverse share split") and the nominal value per share was reduced from CHF 0.40 to CHF 0.02. This resulted in a reduction of share capital and in a concurrent increase in share premium, totaling to CHF 24,347,208, presented in the statement of changes in equity in the line reorganization of group structure.
Aggregate of common shares \| shares						300,000							48,373,890	34,329,704
Par value per share \| SFr / shares													SFr 0.40
Nominal value per share \| SFr / shares											SFr 0.40
Transaction costs									SFr 851,692
Fair value of warrants issued									872,217			896,441
Changes in fair value of warrants issued									24,224
Maximum subscribe of common shares							SFr 13,500,000
Common shares aggregate amount						SFr 136,077					SFr 35
Derivative financial instrument classified as non-current asset												252,351
Finance expense													SFr 4,377,667	SFr 1,772,594	SFr 670,085
Public offering description								In connection with a public offering of 12,499,000 common shares, the Company issued 10,000,000 warrants, each warrant entitling its holder to purchase 0.70 of a common share at an exercise price of? $1.20 per common share. Additionally, the underwriter was granted a 30-day option to purchase up to 1,500,000 additional common shares and/or 1,500,000 additional warrants, of which the underwriter partially exercised its option for 1,350,000 warrants. As of March 13, 2018, following the consummation of the Merger, the outstanding warrants issuable in the 2017 offering were exercisable for an aggregate of 794,000 common shares, at an exercise price of? $12.00 per common share. As of September 30, 2018 the fair value of the warrants amounted to CHF 50,070. The revaluation gain of the derivative for the nine months ended September 30, 2018 amounted to CHF 1,763,342, which is an increase of CHF 63,220 when comparing to the same period in 2017. Since its initial recognition, the fair value decreased by CHF 5,040,393 resulting in a gain in the corresponding amount (fair value as of February 21, 2017: CHF 5,090,463).
Warrants [Member]
Disclosure of classes of share capital [line items]
Issuance initial public offering \| shares				12,499,999
Nominal value per share \| SFr / shares				SFr 0.40
Transaction costs									SFr 108,809
Fair value of warrants issued				SFr 2,483,747	SFr 2,483,747							161,737
Changes in fair value of warrants issued												2,322,010
Proceeds from issue of ordinary shares				4,900,000
Transaction costs				654,985
Finance expense				SFr 313,760
Warrants total \| shares				7,499,999
Warrants exercisable \| shares				750,002
Warrants exercise price per common share \| $ / shares					SFr 5.00
Issuance of common shares transaction costs				SFr 341,226
2018 Commitment Purchase Agreement [Member]
Disclosure of classes of share capital [line items]
Common shares aggregate amount \| $		$ 10,000,000
Transaction costs												349,907
Derivative financial instrument classified as non-current asset												252,351
Finance expense												SFr 97,556
2018 Commitment Purchase Agreement [Member] \| November 15, 2018 [Member]
Disclosure of classes of share capital [line items]
Aggregate of common shares \| shares	75,000	75,000
Proceeds from issue of ordinary shares	SFr 488,075
2017 Commitment Purchase Agreement [Member]
Disclosure of classes of share capital [line items]
Aggregate of common shares \| shares	2,600,000	2,600,000
Proceeds from issue of ordinary shares	SFr 1.8
Maximum subscribe of common shares	SFr 13,500,000
Series A Warrants [Member]
Disclosure of classes of share capital [line items]
Issuance initial public offering \| shares									17,948,717	17,948,717
Aggregate of common shares \| shares									6,282,050
Par value per share \| SFr / shares									SFr 0.02
Nominal value per share \| $ / shares										$ 0.35
Series B Warrants [Member]
Disclosure of classes of share capital [line items]
Aggregate of common shares \| shares									4,487,179
Par value per share \| SFr / shares									SFr 0.39
Nominal value per share \| $ / shares										$ 0.25
Ordinary shares [member]
Disclosure of classes of share capital [line items]
Number of shares outstanding \| shares												24,066,105	48,373,890	34,329,704		44,329,704
Aggregate of common shares \| shares													48,373,890	34,329,704
Par value per share \| SFr / shares													SFr 0.40	SFr 0.40
Transaction costs									SFr 742,833
Equity Offerings [Member]
Disclosure of classes of share capital [line items]
Net proceeds underwriting discounts and other offering expenses \| $										$ 6,200,000

Share Based Payments (Details Textual)	9 Months Ended			12 Months Ended
Share Based Payments (Details Textual)	Sep. 30, 2018 CHF (SFr) Share	Sep. 30, 2018 $ / shares	Sep. 30, 2017 CHF (SFr)	Dec. 31, 2017 Share	Dec. 31, 2016 Share	Dec. 31, 2015 Share	Dec. 31, 2014 Share
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options granted (in shares)	371,893			1,918,100	555,660
Share based compensation net loss \| SFr	SFr 123,425
Exercise price of options \| $ / shares		$ 1.579
Stock Option Plan A [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Vesting period				3 years
Stock Option Plan C [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Vesting period				4 years
Stock Option Plan B
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options granted (in shares)						0
Equity Incentive Plan [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options granted (in shares)				1,918,100	555,660
Period preceding the date of grant for the Board of Directors to define the exercise price				30 days
Options \| Stock Option Plan A [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Vesting period				3 years
Options \| Stock Option Plan C [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Vesting period				4 years
Restricted shares \| Equity Incentive Plan [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options granted (in shares)					0	25,813	0
Employee Stock Options [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Share based compensation net loss \| SFr	SFr 108,399		SFr 259,561

Share Based Compensation (Details)

12 Months Ended

Dec. 31, 2017

Sep. 30, 2018

Dec. 31, 2017

Sep. 30, 2017

Dec. 31, 2016

Dec. 31, 2015

Stock option Plan A [Member]

332,998

2,251,540

139,065

1,038,140

629,010

Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]

50,000

3 years

Stock option Plan C [Member]

5 years

Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]

121,250

4 years

Tranche 1 [Member] | Equity Incentive Plan [Member]

6 years

Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]

Tranche 2 [Member] | Equity Incentive Plan [Member]

50.00%

Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]

Board [Member] | Equity Incentive Plan [Member]

50.00%

Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]

368,200

1 year

Employees/Board [Member] | Tranche 1 [Member] | Equity Incentive Plan [Member]

8 years

Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]

856,045

^[1]

^[1]

2 years

^[1]

50.00%

Employees/Board [Member] | Tranche 2 [Member] | Equity Incentive Plan [Member]

^[1]

8 years

Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]

^[1]

856,045

^[1]

3 years

^[1]

50.00%