CAPITAL RESOURCES 10 10.1 pursued our efforts in advancing our research and development OVERVIEW programs, mainly GS010, that progressed into three Phase I I I trials, as wel l as the ramp-up of CMC and manufacturing We have financed our operations since inception primarily activities in preparation for regulatory submission, and ultimately through private placements of equity securities and sale of commercialization. Our net cash from operating activities in 2017 ordinary shares, raising a total of €112.4 million net of transaction- consisted primarily of a net loss of €(24.1 million) adjusted for related costs as of December 31, 2017 including, inter alia, the sale non-cash items, including share-based payments of €4.8 million, of Series B preferred shares for which we received net proceeds retirement pension obligations of €26 K and amortization and of €30.8 million in a private placement which occurred on July depreciation of €224 K. 2015, the sale of ordinary shares in our initial public offering on Euronext Paris in July 2016 for which we received net proceeds Changes in working capital amounted to €(2.3 mil lion) and of €41.4 million, and the capital increase in June 2017 whose net €202 K for 2016 and 2017, respectively. The significant items in proceeds amounted to €20.7 million. the change in working capital in 2017 include an increase in the trade payables of €384 K – mainly coming from the increase in subcontracting and collaborations costs that includes the costs of 10.2 service providers in connection with conducting manufacturing ANALYSIS OF CASH FLOW activities, non-clinical studies and clinical trials in 2017, as well as an increase in employee related payables of €736 K, due to The table below summarizes our sources and uses of cash for the social contributions related to free shares granted in 2016 and years ended December 31, 2016 and 2017: 2017. These two factors are offset by the increase in other taxes receivables, for a total amount of €911 K, primarily related to the As of December 31, CIR claim reimbursement. 2016 2017 Our net cash flows from investment activities were €(170) K and K€ K€ Net cash flows from operating (19,642) (18,782) €(684) K in 2016 and 2017, respectively. This decrease derives activities from the deposit for the new office facilities in New York €(233 K), Net cash flows from investment (170) (684) the additional contribution to the liquidity agreement €(300 K), activities and the purchase of technical equipments for a total amount of Net cash flows from financing 43,735 20,946 €(236) K. activities Our net cash flows from financing activities decreased to Net (decrease)/increase in 23,922 1,480 €43.7 million in 2016 from €20.9 million in 2017. In July 2016, we cash and cash equivalents received net proceeds of €41.4 million in our initial public offering Our net cash flows from operating activities were €(19.7 million) on Euronext Paris and in 2017 we received net proceeds of and €(18.8 million) for 2016 and 2017, respectively. During 2017, €20.7 million from the issuance of ordinary shares in June 2017. our net cash flows from operating activities remained stable. We 10.3 FUNDING SOURCES During 2016 and 2017, we obtained new financing by both issuance of securities and receipt of conditional advances from Bpifrance Financement. In K€ Equity capital Conditional Subsidies Total advances 2014 (including financing and advances 19,436 678 865 20,979 received prior to 2014) 2015 30,837 – – 30,837 2016 41,439 2,279 – 41,718 2017 20,724 – – 20,724 Total 112,436 2,957 865 116,258 124– GENSIGHT BIOLOGICS – 2017 Registration Document