FINANCIAL INFORMATION CONCERNING THE GROUP’S ASSETS AND LIABILITIES, FINANCIAL POSITIONAND PROFITS AND LOSSES 20 20.1.3 COMPANY’S ANNUAL FINANCIAL for use in the operation and expansion of our business and do not STATEMENTS (FRENCH-GAAP) FOR THE FISCAL anticipate paying cash dividends in the foreseeable future. YEAR ENDING DECEMBER 31, 2017 Subject to the requirements of French law and our bylaws, Our annual financial statements (French-GAAP) for the fiscal dividends may only be distributed from our distributable profits, year ended December 31, 2017 can be found in Annex I of this plus any amounts held in our available reserves, which are those Registration Document. reserves other than the legal and statutory reserves and the revaluation surplus. The declaration and payment of any dividends 20.1.4 STATUTORY AUDITORS’ REPORTS ON THE in the future will be determined by the Board of Directors, in our COMPANY’S ANNUAL FINANCIAL STATEMENTS discretion, and will depend on a number of factors, including our (FRENCH-GAAP) FOR THE FISCAL YEAR ENDING earnings, capital requirements, overall financial condition, and DECEMBER 31, 2017 contractual restrictions, including restrictions contained in any The Statutory Auditors’ report on our annual financial statementsagreements governing any indebtedness the Company may incur. (French-GAAP) for the fiscal year ended December 31, 2017 can be found in Annex I I of this Registration Document. 20.5 LEGAL AND ARBITRATION PROCEEDINGS 20.2 From time to time, we may become involved in legal proceedings or DATE OF LATEST FINANCIAL INFORMATION be subject to claims arising in the ordinary course of our business. Our latest financial information is the annual financial statementsExcept as set forth below, as of the date of this Registration (French-GAAP and IFRS) for the fiscal year ended December 31,Document, to our knowledge, there are no governmental, legal or 2017. arbitral proceedings (including any proceedings of which we are aware, that are pending or with which we are threatened), likely to have, or having had in the course of the last twelve months, a 20.3 material adverse effect on our operations, financial position or HISTORICAL FINANCIAL INFORMATION FOR THE results. Regardless of the outcome, litigation can have an adverse FISCAL YEARS ENDING DECEMBER 31, 2015 AND impact on us because of defense and settlement costs, diversion 2016 of management resources and other factors. In accordance with provisions of Article 28 of the CommissionOn November 5, 2015, we were notified that our Community Regulation (EC) No809/2004 of April 29, 2004, as amended, (i) theTrade Mark application for “GenSight” was the subject of an selected financial information, (ii) the Company’s annual financialopposition from Assurex Health, Inc., a company based in the statements (IFRS)for the fiscal years ended December 31, 2015United States that provides medical testing services relating to and 2016 and the statutory auditor’s report on the Company’s genes. The opposition is currently in a cooling-off period, which annual financial statements (IFRS) for the fiscal years endinghas been extended at the request of both parties until May 25, December 31, 2015 and 2016 and (iii) the Company’s annual 2018 to allow for negotiation. Unless we settle the opposition financial statements (French-GAAP) for the fiscal years endedwith the opponent or either party elects to opt out before the December 31, 2015 and 2016 and the statutory auditor’s reportexpiration of the cooling-off period, the adversarial phase of the on the Company’s annual financial statements (French-GAAP) proceedings will commence on May 26, 2018. See Section 4.8, for the fiscal years ending December 31, 2015 and 2016 are “Legal Risks and Risks Related to our Intellectual Property – Our incorporated by reference in this Registration Document. trademarks and trade names may not be adequately protected This information is included in the Registration Document registeredand we may not be able to build name recognition in our markets with the AMF on April 28, 2017 under number R.17-036. of interest” of this Registration Document. This Documents may be consulted on the Company’s website No provisions or liabilities have been recorded in connection (www.gensight-biologics.com) and on the AMF’s website therewith in our financial statements. (www.amf-france.org). 20.6 20.4 SIGNIFICANT CHANGE IN FINANCIAL OR DIVIDEND POLICY TRADING POSITION We have never declared or paid any cash dividends on our To our knowledge, there has been no material change in our ordinary shares. We currently intend to retain all future earningsfinancial or trading position since December 31, 2017, other than those described in this Registration Document. 214– GENSIGHT BIOLOGICS – 2017 Registration Document