OPERATING AND FINANCIAL REVIEW 9 The table below sets forth the statements of income data as of December 31, 2017 and 2016: As of December 31, In thousands of euros 2016 2017 Operating income Revenues — — Other income 3,001 3,702 Total operating income 3,001 3,702 Operating expenses Research and development 18,529 18,675 General and administrative 6,490 8,173 Sales and marketing — 844 Total operating expenses 25,019 27,692 Operatingprofit (loss) (22,019) (23,99)0 Financial income 23 34 Financial expenses (86) (156) Financial income (loss) (63) (122) Income tax — — Net income (loss) (22,082) (24,112) Basic and diluted earnings (loss) per share(1) (1.36) (1.10) Number of shares used for computing basic and diluted earnings (loss) per share 16,252,765 21,936,006 (1) See Note 21 to our consolidated financial statements as of and for the fiscal year ended December 31, 2017 for further details on the calculation of basic and diluted earnings (loss) per share. 9.1 trial. We expect to treat the first subject in this orphan family of OVERVIEW diseases in the second quarter of 2018. We are an innovative clinical-stage gene therapy company with We have never generated any revenues from product sales. We do an initial focus on discovering, developing and commercializing not expect to generate material revenue from product sales unless novel therapies for severe retinal neurodegenerative diseases. and until we successfully complete development of, and obtain We are developing a pipeline of proprietary product candidates marketing approval for, one or more of our product candidates, to provide patients with a long-lasting cure for severe inherited which we expect wil l take a number of years and is subject to retinal diseases for which there are no currently approved significant uncertainty. To date, we have financed our operations treatments. Our current product candidates are designed to be primarily through private placements of ordinary shares and administered in a single treatment to each eye by intravitreal, or preferred shares, and through conditional advances and non- IVT, injection. We are leveraging our expertise in ophthalmology, refundable subsidies received from Bpifrance Financement, part gene therapy and drug development to restore vision by of Bpifrance, a French public investment bank, and sales of our combining a gene therapy-based approach with our proprietary ordinary shares in connection with the initial public offering of our technology platforms of mitochondrial targeting sequence, or ordinary shares on Euronext Paris in July 2016. MTS, and optogenetics. We believe our technology platforms Al l of our operating losses resulted from costs incurred in have broad applicability both within and outside of ophthalmology connection with our development programs and from general as well as central nervous system, or CNS, disorders. Our lead and administrative expenses associated with our operations. product candidate, GS010, is a recombinant AAV2-based gene See Section 4.1, “Risks Related to Our Financial Condition and therapy for the treatment of Leber Hereditary Optic Neuropathy, Capital Requirements.” We expect to incur substantial losses or LHON, and is currently in Phase I I I clinical trials. We expect to from operations in the foreseeable future as we continue our report data from ourtwo most advanced ongoing Phase I I I clinical research and development efforts, advance GS010, GS030 trials for GS010, REVERSE and RESCUE, in 2018. Our second and other product candidates through preclinical and clinical most advanced product candidate, GS030, for the treatment of development, seek regulatory approval and prepare for and, if Retinitis Pigmentosa, or RP, is currently in an ongoing Phase I/I I approved, proceed to commercialization. Specifically, we have GENSIGHT BIOLOGICS – 2017 Registration Document– 113