ANNEX 1 27 NOTE 11 — FINANCIAL INCOME (LOSS) NOTE 16 — COMPETITIVENESS AND EMPLOYMENT Financial income (loss) as of December 31, 2017 is as follows: TAX CREDIT Tax Credit for Competitiveness and Employment (hereafter In thousands of euros 12/31/17 12/31/16 CICE) is calculated at the end of the year on the basis of eligible Financial revenues 39 24 pay. Foreign exchange gains 32 19 Revenue is recognized as a reduction of personnel expenses Marketable securities disposal gains — 1 in accordance with the recommendation of the Authority Othe financial income 7 3 Accounting Standards. Financial expenses 197 63 Moreover, the terms and conditions of this credit tax, as specified Foreign exchange losses 25 58 in Article 244 quarter C of the General Tax Code (Code général des Financial depreciation and 52 5 impôts), have been applied. The CICE of the prior year 2016 has amortization enabled to fund research and development expenses. Interest expenses on borrowings and 76 — The Company recorded income in the amount of €6 K in tax financial debt credit. Other financial expenses 43 — Financial Income (loss) (158) (40) NOTE 17 — TRANSACTIONS WITH RELATED PARTIES The compensation granted to the Directors of the Company Other financial expenses correspond to realized losses related to amounted to €899 K for fiscal year 2017. the liquidity contract. Moreover, the CEO of GenSight Biologics was shareholder of the NOTE 12 — EXTRAORDINARY INCOME (LOSS) Company with which GenSight Bilologics had a lease contract and a service agreement (in connection with Human Resources, legal The extraordinary income is nil as of December 31, 2017. and Intellectual Property services) in 2017. The related expenses during the period amounted to €762 K. NOTE 13 — HEADCOUNT As of 12/31/17 As of 12/31/16 NOTE 18 — FEES PAID TO THE AUDITORS Managers 33 27 The fees of the auditors recognized in fiscal year 2017 amounted NET 33 27 to €223 K. NOTE 19 — COMMITMENTS NOTE 14 — INCREASE AND REDUCTIONS NOT RECOGNIZED IN FUTURE TAX DEBT (IN BASE) 19.1 — Commitments under operating leases Commitments existing as of December 31, 2016 have not At the close of fiscal year 2017, the amount of deficit being changed significantly at the end of the reporting period, with the indefinitely carried forward is as follows: exception of the following: Basis Potential • On May 2017, the office lease contract the Group entered corporate tax on January 2015 relating to its headquarters in Paris, France, In thousands of euros savings has been amended. The amendment consisted especial ly Net Operating Losses 75,797 21,223 in a decreased rent as the Group is using less office space. The associated services (reception, printers and IT, access to NOTE 15 — RESEARCH TAX CREDIT meeting rooms…) have also been revised accordingly. The Company benefits from the provisions in Articles 244 • Car rental contracts have either been terminated during quater B and 49 septies F of the French Tax Code related to the the period so that at end of December 31, 2017, there is no Research Tax Credit. remaining commitment. Changes in the Research Tax Credit over the last two periods are presented as follows: • 2016: €2,930 K, reimbursed in 2017; • 2017: €3,692 K. 254 – GENSIGHT BIOLOGICS – 2017 Registration Document