OPERATING AND FINANCIAL REVIEW 9 The majority of the sales and marketing expenses in 2017 social contributions related to free shares granted in 2016 and correspond to consulting fees. 2017, as well as share-based compensation expenses related to the grant of warrants and free shares to employees, and to the As of December 31, initiation of marketing activities in preparation of our first product 2016 2017 commercialization. K€ K€ Personnel expenses(1) Na 53 Financial Loss Fees Na 627 Our net financial loss increased from €(63) K in 2016 to €(122) K in 2017. Our financial income increased from €23 K in 2016 to Communication and travel Na 129 €34 K in 2017. We did not invest in securities and cash equivalents expenses in 2017, therefore the financial income only arose from the Office costs Na 26 foreign exchange gains coming from the purchase of services Others Na 8 denominated in U.S. dol lars. We generated foreign exchange Total S&M expenses Na 844 losses of €(58) K in 2016 and €(77) K in 2017, also related to the (1) I ncludes €13 K related to share-based compensation expense as of purchase of services denominated in foreign currencies, primarily December 31, 2017. in U.S. dollars. Our interest expenses corresponding to accrued interests of conditional advances have increase from €(21) K to Operating Loss €(76) K. Our operating loss increased from €(22.0 mil lion) in 2016 to €(24.0 million) in 2017. As described above, this is mainly due to GENSIGHT BIOLOGICS – 2017 Registration Document– 121