CAPITAL RESOURCES 10 On July 7, 2015, we sold 4,624,871 Series B preferred shares As of December 31, 2017, the remaining amount of potential for which we received net proceeds of €30.9 million in a private conditional advance to be received, subject to completion of placement. milestones, is €2.3 million. On July 8, 2015, we issued 1,833,247 warrants for which we Bpifrance Financement Conditional Advances received proceeds of €30 K. The payment schedule for conditional advances under the On July 13, 2016, we issued 5,000,000 ordinary shares for which program is summarized below: we received net proceeds of €36.4 mil lion in our initial public • €678 K received in December 2014; offering on Euronext Paris. • €2.3 mil lion received in July 2016 (initial ly estimated to be On August 10, 2016, we issued 655,859 ordinary shares for €2.7 million based on the payment schedule and reduced as a which we received net proceeds of €5.0 million after exercising result of lower costs incurred by us than anticipated); the overal lotment option in connection with our initial public • €494 K to be received in the second quarter of 2018; offering on Euronext Paris. • €853 K to be received in November 2018; and On September 3, 2016, we issued 112,000 ordinary shares for • €986 K to be received in November 2019. which we received net proceeds of €3 K in connection with the exercise of share warrants. The advances bear interest depending on the level of success of On October 6, 2016, we issued 32,720 ordinary shares for which the funded program. The repayment schedule for a total amount we received net proceeds of €4 K in connection with the exercise of €6.5 million, including interest at an annual rate of 1.44%, is as of share warrants. follows: • €550 K on or before June 30, 2022; On October 31, 2016, we issued 205,000 warrants for which we received proceeds of €133 K. • €1.0 million on or before June 30, 2023; • €1.5 million on or before June 30, 2024; On June 27, 2017, we issued 3,750,000 ordinary shares for which we received net proceeds of €20.7 million. • €1.7 million on or before June 30, 2025; and We have incurred net losses in each year since our inception. • €1.7 million on or before June 30, 2026. Substantially all of our net losses resulted from costs incurred in Following the repayment of all of the conditional advances, we connection with our development programs and from general and may be required to make additional payments over a period administrative expenses associated with our operations. of two years of up to €2.7 mil lion, depending on whether we We have not incurred any bank debt. reach cumulative revenue,excluding taxes, of €80.0 million by 2037. Our obligation to repay these amounts is based on the In 2014, we received a grant from Bpifrance Financement of both technical and commercial success of the funded program, as non-refundable subsidies and conditional advances in relation determined by the revenues forecasts or revenues deriving from to the development of our optogenetics technology platform. direct or indirect exploitation of the products and results of The program wil l be funded according to a specified schedule our optogenetics technology platform. In the event Bpifrance set forth in the contract, subject to completion of milestones. Financement determines that the program is not successful, As the program advances, we provide Bpifrance Financement Bpifrance Financement will meet with us to assess the impact on with interim progress reports and a final report when the the repayments and the repayment schedule. funded project ends. Based on these reports, we are entitled to conditional advances from Bpifrance Financement. Each award of Bpifrance Financement non-refundable subsidy an advance is made to help fund a specific development milestone. We have been granted a total of €1.1 million in non-refundable The total amount of the conditional advances initially granted was subsidies as follows: €5.7 million, of which €678 K was received in December 2014 and • €866 K received in December 2014; €2.3 million received in July 2016, and recognized as non-current liabilities in the statement of financial position, as this conditional• €173 K to be received in November 2018; and advance is repayable by us according to a repayment schedule. • €111 K to be received in November 2019. GENSIGHT BIOLOGICS – 2017 Registration Document– 125