CAPITAL RESOURCES 10 The table below summarizes the aggregate amounts of subsidies and conditional advances we have received as of December 31, 2017: In K€ Entitled Granted Repayed To be granted Conditional advances 5,686 2,957 (1) 2,729 – Subsidies 1,147 865 – 282 Total 6,833 3,822 – 3,012 (1) The estimated amount from the initial payment schedule was €2.7 million. The costs occurred by us amounted to a lower amount than expected, therefore the amount of this milestone was reduced accordingly 10.4 PRINCIPAL USES OF CASH 10.4.1 CONTRACTUAL OBLIGATIONS AND COMMITMENTS The following table discloses aggregate information about our material contractual obligations and the periods in which payments are due as of December 31, 2017. Future events could cause actual payments and timing of payments to differ from the amounts set forth below. Total Less than One to Four to More than In thousands of euros one year three years five years five years Conditional advances 3,033 (1) 550 2,483 – – Pension and employee benefits 88 – – – 88 Rental agreements 6,018 778 2,682 1,904 654 Collaborations and licensing arrangements 92 92 – – – Total 9,231 870 2,682 2,454 3,225 (1) The estimated amount from the initial payment schedule was €2.7 million. The costs occurred by us amounted to a lower amount than expected, therefore the amount of this milestone was reduced accordingly. On January 1, 2015, we entered into a lease agreement for our 10.4.2 OPERATING CAPITAL REQUIREMENTS headquarters premises with Passage de l’Innovation, which was We believe that our existing cash and cash equivalents , amounting amended on October 1, 2015, January 1, 2016 and May 1, 2017. to €49.2 million as of March 31, 2018, will enable us to fund our Pursuant to this last agreement, we wil l have to pay €533 K operating expenses and capital expenditure requirements until excluding taxes, on an annual basis, comprised of €318 K for rent, the end of the third quarter of 2019. We have based this estimate €21 K for rental charges and up to €194 K for other services on assumptions that may prove to be wrong, and we could use our provided by the lessor through the end of 2024. capital resources sooner than we currently expect. In any event, On September 6, 2017, we signed a lease agreement for our we have to raise additional capital to pursue preclinical and clinical premises in New York with Winter Properties LLC. Pursuant to activities, obtain regulatory approval for, and to commercialize this agreement, we will pay $440 K annually during the first four our product candidates. years of leasing; and $463 K annual ly covering the rest of the Until we can generate a sufficient amount of revenue from our leasing period. The lease term is seven years and five months. product candidates, if ever, we expect to finance our operating The amounts of contractual obligations set forth in the table above activities through our existing liquidity. are associated with contracts that are enforceable and legal ly Our present and future funding requirements wil l depend on binding and that specify all significant terms, fixed or minimum many factors, including, among other things: services to be used, fixed, minimum or variable price provisions, and the approximate timing of the actions under the contracts. • the size, progress, timing and completion of our clinical trials The table does not include obligations under agreements that we for any current or future product candidates, including our lead can cancel without a significant penalty. product candidates, GS010 and GS030; • the number of potential new product candidates we identify and decide to develop; 126– GENSIGHT BIOLOGICS – 2017 Registration Document