FINANCIAL INFORMATION CONCERNING THE GROUP’S ASSETS AND LIABILITIES, FINANCIAL POSITIONAND PROFITS AND LOSSES 20 Al l the changes relating to employee warrants, non-employee • €1,500 K on or before June 30, 2024; warrants and free shares, as well as their impact on the profit and • €1,700 K on or before June 30, 2025; and loss for the period are detailed in Note 16. • €1,740 K on or before June 30, 2026. Note 10: Financial liabilities Following the repayment of all of the conditional advances, the 10.1 Conditional advances Company may be required to make additional payments over a period of two years of up to €2.7 million (€1.1 million the first In 2014, the Company received a grant from Bpifrance year and €1.6 million the second year), depending on whether Financement in the form of both subsidies and conditional the Company reaches cumulative revenues, excluding taxes, of advances in relation to the development of its technology €80.0 million. These additional repayments shouldbe done within platform. The program will be funded according to a specified 15 years following the first year of reimbursement, i.e. 2037. schedule set forth in the contract, subject to completion of milestones. As the program advances, the Company will provide The obligation to repay these amounts is based on the technical Bpifrance Financement with interim progress reports and a final and commercial success of the funded program, as determined by report when the funded project ends. Based on these reports, the revenues forecast or revenues deriving from direct or indirect the Company is entitled to conditional advances from Bpifrance exploitation of those products and results of its optogenetics Financement. Each award of an advance is made to help fund technology platform. In the event Bpifrance Financement a specific development milestone. The total amount initial ly determines that the program is not successful, Bpifrance planned of the conditional advances is €5,686 K. The Company Financement will meet with the Company to assess the impact on has committed to reimburse a total amount of €,490 K (included6 the repayments and the repayment schedule. accrued interests; determined at an annual rate of 1.44%). If the At this stage, the Company has decided not to include the total advances actually paid by Bpifrance Financement are less future cash flows resulting from the additional payments in the than €5,686 K,the reimbursements will be reduced in proportion calculation of the EIR, because it does not have enough visibility on to the advances actually paid. thecommercial success of its second product, as of December 31 , The advances will be paid according to the following schedule, 2017. subject to completion of milestones: The table below presents the details of the financial liabilities • €678 K received in December 2014; recorded on the statements of financial position: • €2,279 K received in July 2016 (1) ; In thousands of euros • €494 K to be received in the first half of 2018 (2); • €853 K to be received in November 2018; and Balance as of January 1, 2017 2,922 • €986 K to be received in November 2019. Receipts — Repayments — The advances already paid in 2017 and 2016 and the corresponding accrued interests are both recognized as non- Accrued interest 76 current liabilities in the statement of financial position. Other 34 The repayment schedule for a total amount of €6,490 K of all of Balance as of December 31, 2017 3,033 the conditional advances is as follows: Non-current portion 3,033 • €550 K on or before June 30, 2022; Current portion — • €1,000 K on or before June 30, 2023; (1) The estimated amount from the initial payment schedule was €2,675 K. The costs occurred by Company amounted to a lower amount than expected, therefore the amount of this milestone was reduced accordingly. (2) The corresponding milestone was in November 2017, but the funds will be paid after the evaluation of the final report that will occur in the first half of 2018. GENSIGHT BIOLOGICS – 2017 Registration Document– 199