RISK FACTORS 4 We expect to have significant ongoing financing needs in increases. Our inability or failure to do so could harm our business, connection with our ongoing activities, particularly as we continue financial condition and results of operations. the research and development of, initiate further clinical trials of and seek marketing approval for, our product candidates. See Section 4.1, “Risks Related to our Financial Condition and Capital 4.10 Requirements – We may need to raise additional capital in the INSURANCE AND RISK MANAGEMENT future, which may not be available on acceptable terms, or at all, and failure to obtain this necessary capital when needed may We have implemented a policy to cover the main insurable risks force us to delay, limit or terminate our product development with coverage amounts that we deem compatible with the nature efforts or other operations” of this Registration Document. of our operations. The total amount of premiums paid for all of our insurance policies for the fiscal year ended December 31, 2017 Credit Risk amounted to €95 K. We believe that the credit risk related to our cash and cash As a development-stage business, we are unable to quantify risk equivalents is not significant in light of the quality of the co- to determine a coverage amount, in particular with respect to contracting financial institutions. civil liability. However, we consider that the insurance policies Inflation Risk described below adequately cover the risks inherent to our operations and that our insurance policy is consistent with We do not believe that inflation has had a material effect on our practice in our sector. We do not envisage any particular difficulty business, financial condition or results of operations. If our costs in maintaining appropriate levels of insurance in the future subject were to become subject to significant inflationary pressures, we to market conditions and capacities. may not be able to fully offset such higher costs through price Our insurance policies are summarized below: Risks covered Insurer Amount Excess per claim Comprehensive professional GENERALI insurance (N° AP438391) Property and contents insurance, Premises: Unlimited including: Contents: €772 K (2017 values) • Fire and similar events Premises: Unlimited Contents : €772 K per occ/agg • Natural disasters Premises: Unlimited Contents: €772 K per occ/agg • Climate events Premises: Unlimited Contents: €772 K per occ/agg • Water damage Premises: Unlimited Contents: €386 K per occ/agg • Theft-vandalism: Unlimited damage to property • Theft-vandalism: €193 K damage to contents • Acts of terrorism Premises: Unlimited Contents: €772 K per occ/agg • Glass breakage €5 K 54 – GENSIGHT BIOLOGICS – 2017 Registration Document