FINANCIAL INFORMATION CONCERNING THE GROUP’S ASSETS AND LIABILITIES, FINANCIAL POSITIONAND PROFITS AND LOSSES 20 Note 17: Financial income and expenses described in Note 3.15, and with respect to the stage of The financial income and expenses are broken down as follows: development of the Company, no deferred tax assets have been recognized in the Financial Statements. As of December 31, As of December 31, 2017, accumulated tax loss carryforwards In thousands of euros 2016 2017 since inception amounted to €75,807 K. This tax loss can be Income from cash equivalents 1 carried forward indefinitely and charged against future profits, in — Foreign exchange gains 19 34 accordance with current French tax laws (CGI art. 209, I-al. 3 et BIC-XIV-2000s). Other 3 — 18.1 Reconciliation between the effective and nominal income tax Financial income 23 34 expense Foreign exchange losses (58) (77) The fol lowing table shows the reconciliation between the Accrued interests (21) (76) effective and nominal tax expense at the statutory French rate of Finance cost on employee (1) (1) 28.00% as of December 31, 2017 (33.33% as of December 31, benefits 2016), excluding additional contributions: Other (5) (1) As of December 31, Financial expenses (86) (156) In thousands of euros 2016 2017 Total (63) (122) (22,082) (24,112) Income before taxes Foreign exchange gains and losses primarily arise from the Statutory tax rate 33.33% 28.00% purchase of services labeled in U.S. dollars. Nominal tax expense 7,360 6,751 As mentioned in Note 10.1, the accrued interests have been Increase/decrease in tax — — calculated on the basis of a rate of 1.44%. expense arising from: Note 18 : Income tax expense Research tax credit 977 1,034 Share-based compensation (1,545) (1,344) As mentioned in Note 3.11 – Accounting Principles – Research Tax Credit, subsidies and conditional advances, the French Non-recognition of (6,792) (6,441) deferred tax assets related Research Tax Credit is not included in the line item income taxes to tax losses and temporary but included in the line item other income. differences As the Group is generating tax losses, no income tax expense has Other differences — — been recognized. Moreover, in accordance with the principles Income tax expense — — Effective tax rate 0% 0% Note 19: Commitments The following table discloses aggregate information about material contractual obligations and the periods in which payments are due as of December 31, 2017. 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 92 92 — — — arrangements Total 9,231 870 2,682 2,454 3,225 (1) XXX. GENSIGHT BIOLOGICS – 2017 Registration Document– 207