FINANCIAL INFORMATION CONCERNING THE GROUP’S ASSETS AND LIABILITIES, FINANCIAL POSITIONAND PROFITS AND LOSSES 20 Over the two periods, the increase primarily relates to technical Other taxes receivable essentially refers to VAT receivables. equipment and installations. The increase in the buildings fixtures As of December 31, 2017, prepaid expenses were primarily rental, item is related to the improvement made in the Group’s premises. scientific collaborations and travel expenses. Note 6: Other non-current financial assets Research Tax Credit The non-current financial assets correspond to the deposit paid The Company benefits from the provisions in Articles 244 to the lessor for the registered offices of the Group. quater B and 49 septies F of the French Tax Code related to the Research Tax Credit. In compliance with the principles described As of December 31, in Note 3.11, the Research Tax Credit is recognzed in thei In thousands of euros 2016 2017 Consolidated Statement of Income (Loss) in “other income” during Guarantee deposits 103 327 the year in which the eligible research expenditures are incurred. Total non-current financial 103 327 Changes in the Research Tax Credit over the last two periods are assets presented as follows: The increase in guarantee deposits of the Group as of Amounts in K€ December 31, 2017 is due to a lease contract for its U.S.- Opening balance sheet receivable 2,874 based subsidiary made in September 2017. The amount of the as of January1, 2016 corresponding security deposits is $294 K (€245 K). Other operating income 2,930 In addition, the guarantee deposits for the French company Payment received (2,874) decreased (€103 K and €82 K as of December 31, 2016 and Closing balance sheet receivable 2,930 December 31, 2017 respectively). The decrease is due to the as of December 31, 2016 amendment made on April 25, 2017 to the lease contract for the head office in Paris, France. Pursuant to the new terms and Amounts in K€ conditions, less square meters are used and as a result, both the rental fees and the guarantee deposit have been reduced Opening balance sheet receivable 2,930 as of January1, 2017 accordingly. Other operating income 3,692 Note 7: Accounts receivable and other current assets Payment received (2,930) 7.1 Accounts receivable and related receivables Closing balance sheet receivable 3,692 as of December 31, 2017 All accounts receivable have payment terms of less than one year. No valuation allowance was recognized on accounts receivable as Note 8: Cash and cash equivalents there is no past due receivable. Cash and cash equivalents items are broken down as follows: 7.2 Other current assets As of December 31, The other current assets are broken down as follows: In thousands of euros 2016 2017 As of December 31, Cash 53,982 55,448 In thousands of euros 2016 2017 Cash equivalents — — Prepayments 133 240 Total cash and cash equivalent 53,982 55,448 as reported in the statements Research tax credit 2,930 3,692 of financial position Other taxes receivable 398 538 Bank overdrafts — — Liquidity contract 151 367 Total net cash and cash 53,982 55,448 Prepaid expenses 442 514 equivalents as reported in the statements of cash flows Other receivable — — Total 4,053 5,351 GENSIGHT BIOLOGICS – 2017 Registration Document– 197