| Notes related to the consolidated statements of financial position | NOTES RELATED TO THE CONSOLIDATED STATEMENTS OF FINANCIAL POSITIONFixed assets 4.1.1 Intangible assets Accounting policies Internally generated intangible assets – Research and development costs In accordance with IAS 38 Intangible Assets ( “IAS 38” ), research expenditures are expensed in the period during which they are incurred. An internally generated intangible asset relating to a development project is recorded as an asset if, and only if, the following criteria are met: (a) it is technically feasible to complete the development project; (b) intention on the part of the Company to complete the project and to utilize it; (c) capacity to utilize the intangible asset; (d) proof of the probability of future economic benefits associated with the asset; (e) availability of the technical, financial, and other resources for completing the project; and (f) reliable evaluation of the development expenses. The initial measurement of the asset is the sum of expenses incurred starting on the date on which the development project meets the above criteria. Because of the risks and uncertainties related to regulatory authorizations and to the research and development process, the Company believes that the six criteria stipulated by IAS 38 have not been fulfilled to date and the application of this principle has resulted in all development costs being expensed as incurred in all periods presented. Other intangible assets Other intangible assets are recorded at their acquisition cost plus costs directly attributable to the preparation of the asset for its intended use. Other intangible assets mainly comprised costs of modeling studies of a new production process and costs of acquisition of software licenses. As the new production process relates to equipment that is not yet constructed, the amortization will begin on the date the equipment will be available for use (i.e. when it is in the location and condition necessary for it to be capable of operating). In the meantime, an impairment test will be performed (see note 4.1.3). Intangible assets with a finite life are amortized on the basis of the straight-line method over their estimated useful life. Intangible assets Item Amortization period Software 1 to 5 years (amounts in thousands of euros) Other intangible assets Intangible assets in progress TOTAL GROSS VALUE As of As of December 31, 2017 234 — 234 Increase 3 — 3 Decrease — — — FX rate impact — — — Reclassification 1,596 — 1,596 As of As of December 31, 2018 1,833 — 1,833 Increase 16 — 16 Decrease — — — FX rate impact — — — Reclassification 27 — 27 As of As of December 31, 2019 1,876 — 1,876 Increase — 2 2 Decrease — — — FX rate impact (1) — (1) Reclassification — — — As of As of December 31, 2020 1,875 2 1,877 ACCUMULATED AMORTIZATION AND DEPRECIATION As of As of December 31, 2017 (181) — (181) Increase (39) — (39) Decrease — — — FX rate impact — — — As of As of December 31, 2018 (220) — (220) Increase (1,053) — (1,053) Decrease — — — FX rate impact — — — As of As of December 31, 2019 (1,273) — (1,273) Increase (16) — (16) Decrease — — — FX rate impact 1 — 1 As of As of December 31, 2020 (1,288) — (1,288) NET VALUE As of December 31, 2017 53 — 53 As of December 31, 2018 1,613 — 1,613 As of December 31, 2019 603 — 603 As of December 31, 2020 587 2 589 The reclassification of €1,596 thousand in 2018 corresponds to expenses incurred as part of a new production process that were recognized in assets under construction as of December 31, 2017. Considering that the new production process (€1,596 thousand) relates to equipment that is not yet constructed, an impairment test is performed annually and whenever there is an indication that the intangible asset may be impaired (see note 4.1.3). Following clarification at the end of 2019, the Company determined that €1,036 thousand of the intangible asset will no longer be used in the intended production process. This amount has been impaired. 4.1.2 Property, plant and equipment Accounting policies Property, plant and equipment are recorded at their acquisition cost, comprised of their purchase price and all the direct costs incurred to bring the asset to the location and working condition for its use as intended by the company’s management. Property, plant, and equipment are depreciated on the basis of the straight-line method over their estimated useful life. The non-reusable fixtures of property rented are depreciated over the term of their own lifetime or of the term of the rental agreement, whichever is shorter. The depreciation periods used are the following: Property, plant and equipment items Depreciation period Industrial equipment 1 to 5 years Fixtures and improvements in structures 3 to 10 years Office equipment and computers 3 to 5 years The useful lives of property, plant and equipment as well as any residual values are reviewed at each year end and, in the event of a significant change, result in a prospective revision of the depreciation pattern. (amounts in thousands of euros) General equipment, fixtures and fittings Plant, equipment and tooling Office equipment and computers Assets under construction TOTAL GROSS VALUE As of December 31, 2017 1,855 2,094 669 1,730 6,348 Increase 152 490 155 13,425 14,222 Decrease — — — — — FX rate impact — — — — — Reclassification — — — (1,596) (1,596) As of December 31, 2018 2,007 2,584 824 13,559 18,974 Increase 9,489 1,557 387 630 12,063 Decrease (437) (106) (112) (21) (676) FX rate impact (63) (8) 2 268 199 Reclassification 11,389 779 70 (13,357) (1,119) As of December 31, 2019 22,385 4,806 1,171 1,079 29,441 Increase 30 301 37 78 446 Decrease (83) (69) 0 (26) (178) FX rate impact (1,644) (247) (36) (13) (1,940) Reclassification 13 996 32 (1,041) 0 As of December 31, 2020 20,701 5,787 1,204 77 27,769 ACCUMULATED DEPRECIATION As of December 31, 2017 (1,116) (1,571) (255) — (2,942) Increase (355) (248) (155) — (758) Decrease — — — — — FX rate impact — — — — — Reclassification — (5) 5 — — As of December 31, 2018 (1,471) (1,824) (405) — (3,700) Increase (1,148) (469) (180) — (1,797) Decrease 437 85 112 — 634 FX rate impact — — (3) — (3) Reclassification 61 988 7 — 1,056 As of December 31, 2019 (2,121) (1,220) (469) — (3,810) Increase (2,232) (993) (232) — (3,457) Decrease 8 69 — — 77 FX rate impact 218 52 13 — 283 Reclassification — — — — — As of December 31, 2020 (4,127) (2,092) (688) — (6,907) NET VALUE As of December 31, 2017 739 523 414 1,730 3,406 As of December 31, 2018 536 760 419 13,559 15,274 As of December 31, 2019 20,265 3,586 702 1,079 25,632 As of December 31, 2020 16,574 3,695 516 77 20,862 As of December 31, 2018, property, plant and equipment included assets held under finance leases. Their net book value amounted to €37 thousand as of December 31, 2018. Property, plant and equipment held under finance leases were reclassified in right of use with the application of IFRS 16 as of January 1, 2019. 4.1.3 Impairment on fixed assets Accounting policies According to IAS 36 Impairment of Assets (“ IAS 36 ”), a loss in value must be recognized where the carrying value of an asset, or the cash generating unit to which the asset belongs (if it is not possible to estimate the recoverable amount of the individual asset), is higher than its recoverable value. The recoverable value of an asset corresponds to its fair value less costs to sell or its value in use, whichever is higher. The property, plant, and equipment and intangible assets that have a finite life are subject to an impairment test when the recoverability of their carrying value is called into question by the existence of indications of impairment. The intangible assets that are not amortized are tested for impairment at the end of the period in which they are acquired, subsequently annually and whenever there is an indication that the intangible asset may be impaired. An impairment is recognized up to the amount of the excess of the value over the recoverable value of the asset. Accounting policies In accordance with IFRS 16 Leases ( “IFRS 16” ) , applicable since January 1, 2019, the right of use is recognized on the lessee’s balance sheet when the asset linked to the lease agreement become available. The right of use asset is measured at cost and comprises: • the amount of the initial measurement of the lease liability (see note 4.10), • lease incentives, payments at or prior to commencement date, • incremental costs which would not have been incurred if the contract had not been concluded. The right of use is subsequently measured at cost less depreciation and any accumulated impairment loss. The amount can be adjusted based on certain revaluations of the lease liability. Until December 31, 2018, only finance lease agreements for which the Company bears substantially all the benefits and risks inherent in the ownership of the property were recorded as assets in accordance with IAS 17 Leases (“IAS 17”) . (amounts in thousands of euros) Buildings Plant, equipment and tooling Transport equipment Office equipment and computers TOTAL GROSS VALUE As of December 31, 2018 — — — — — First application of IFRS 16 7,397 — 47 — 7,444 Increase 4,088 — 33 — 4,121 Decrease (355) (20) — — (375) FX rate impact 107 — — — 107 Reclassification — 974 — 118 1,092 As of December 31, 2019 11,237 954 80 118 12,389 Increase 92 — 7 — 99 Decrease — — (14) — (14) FX rate impact (483) — — — (483) Reclassification — — — — At December 31, 2020 10,846 954 73 118 11,991 ACCUMULATED DEPRECIATION As of December 31, 2018 — — — — — Increase (1,304) — (23) (39) (1,366) Decrease 16 20 — — 36 FX rate impact 3 — — — 3 Reclassification — (974) — (79) (1,053) As of December 31, 2019 (1,285) (954) (23) (118) (2,380) Increase (1,489) — (29) — (1,518) Decrease — — 10 — 10 FX rate impact 125 — — — 125 Reclassification — — — — — As of December 31, 2020 (2,649) (954) (42) (118) (3,763) NET VALUE As of December 31, 2018 — — — — — As of December 31, 2019 9,952 — 57 — 10,009 As of December 31, 2020 8,197 — 31 — 8,228 Reclassifications in 2019 correspond to assets financed by finance leases which have been reclassified in right of use with the application of IFRS 16 as of January 1, 2019. These assets were classified in property, plant and equipment until December 31, 2018. The increase of €4,121 thousand in 2019 is mainly linked to the partial relocation of the French team in new facilities in July 2019 (impact of €4,026 thousand). The decrease in net value of €339 thousand in 2019 corresponds to a decrease in the right of use following a decrease in the rental space of a building lease (linked to a partial relocation of the French team in new facilities). Accounting policies Other financial assets are composed of receivables initially recognized at their fair value and then at the amortized cost calculated with the effective interest rate (“ EIR ”) method. Financial assets with a maturity of more than one year are classified in “other non-current financial assets” in accordance with IAS 1. (amounts in thousands of euros) 12/31/2018 12/31/2019 12/31/2020 Deposits related to leased premises 446 475 454 Advance payments to suppliers 510 226 620 Other 90 17 17 Total other non-current financial assets 1,046 718 1,091 Deposits related to leased premises — — — Advance payments to suppliers — 28 51 Other — 13 8 Total other current financial assets — 41 59 Advance payments comprise payments made to service providers, especially Contract Research Organizations (“CROs”), involved with the conduct of the clinical trials in the solid tumors indication (TRYbeCA-1 and TRYbeCA-2 trials). Accounting policies In compliance with IAS 2 Inventories (“ IAS 2 ”), inventories are recognized at their cost or at their net realizable value, whichever is lower. Cost is determined on a First- In First-Out (FIFO) cost basis. Management periodically reviews the inventory for obsolescence and adjusts as necessary. (amounts in thousands of euros) 12/31/2018 12/31/2019 12/31/2020 Raw materials 1,396 358 — Total inventory 1,396 358 — Accounting policies Other current assets are initially recognized at their fair value and then at the amortized cost calculated with the effective interest rate (“ EIR ”) method. Trade receivables Trade receivables are initially recognized in accordance with IFRS 15 and then at the amortized cost calculated with the effective interest rate (“ EIR ”) method. The Company recognizes loss allowances for expected credit losses (“ ECL ”), which, for trade receivables and contract assets, are measured at an amount equal to lifetime ECLs that result from all possible default events over their expected life. Loss allowances are deducted from the gross amounts of the assets. (amounts in thousands of euros) 12/31/2018 12/31/2019 12/31/2020 Trade and other receivables 30 36 4 Total trade and other receivables 30 36 4 Research Tax Credit 7,701 3,917 3,432 Other receivables (including tax and social receivables) 1,949 1,870 898 Prepaid expenses 4,461 2,188 793 Total other current assets 14,111 7,975 5,123 Research Tax Credit The Company benefits from the provisions in Articles 244 quater B and 49 septies F of the French Tax Code related to the Research Tax Credit. As of December 31, 2018, the CIR receivable included Research Tax Credit for the 2017 and 2018 financial years. As of December 31, 2019 and December 31, 2020, the CIR receivables included Research Tax Credit of the year. Tax and social receivables and other receivables Tax and social receivables and other receivables mainly related to VAT receivables (€949 thousand as of December 31, 2018, €942 thousand as of December 31, 2019 and €635 thousand as of December 31, 2020) and credit notes to be received ( €863 thousand as of December 31, 2018, €570 thousand as of December 31, 2019 and €185 thousand as of December 31, 2020). Prepaid expenses Prepaid expenses mainly related to advances payments made to suppliers of asparaginase (€3,180 thousand as of December 31, 2018, €1,295 thousand as of December 31, 2019 and €0 thousand as of December 31, 2020). Accounting policies The item “cash and cash equivalents” includes bank accounts and highly liquid securities. They are readily convertible into a known amount of cash and are subject to a negligible risk of change in value. The cash equivalents classification is made if the following criteria are fulfilled: • held for the purpose of meeting short term cash commitments rather than for investment or other purposes. • exit options exist: ◦ exercisable at any time at least every three months; ◦ initially included in the contract and this exit option is always provided in the initial contract; and ◦ exercisable without exit penalty and without significant risk of change in the amount received as cash reimbursement. • there is no value risk related to the level of minimum compensation acquired (i.e. that obtained in the event of early exit) because over the entire duration and at each moment this remuneration will be identical to that obtained from an investment of no more than three months that meets the definition of a cash equivalent. This can be the case when the rate is variable or revisable. They are recorded as assets in cash equivalents, measured at their fair value, and the changes in value are recognized in financial income (loss). (amounts in thousands of euros) 12/31/2018 12/31/2019 12/31/2020 Current account 118,371 68,066 34,348 Term deposits 16,000 5,107 10,098 Total cash and cash equivalents as reported in statement of financial position 134,371 73,173 44,446 Bank overdrafts — — — Total cash and cash equivalents as reported in statement of cash flow 134,371 73,173 44,446 As of December 31, 2018, term deposits included two term deposits of €11.0 million and €5.0 million, both with a maturity in January 2019. As of December 31, 2019, term deposits included a term deposit of €5.0 million with a maturity of one month and deposits of €0.1 million convertible into cash immediately. As of December 31, 2020, term deposits included a term deposit of €10.0 million with a maturity of one month and deposits of €0.1 million convertible into cash immediately. Accounting policies Common shares are classified under shareholders’ equity. The costs of share capital transactions that are directly attributable to the issue of new shares or options are recognized in shareholders’ equity as a deduction from the proceeds from the issue, net of tax. As of December 31, 2020, the capital of the Parent Company consisted of 20,057,562 shares, fully paid up, with a nominal value of 0.10 euro. Number of shares As of December 31, 2017 17,937,559 Free shares acquired 2,476 As of December 31, 2018 17,940,035 As of December 31, 2019 17,940,035 Conversion of convertible notes ("OCA") 2,094,704 Exercise of warrants 16,080 Free shares acquired 6,743 As of December 31, 2020 20,057,562 Capital management The capital is managed to ensure that the Company will be able to continue as a going concern while maximizing the return to shareholders through the optimization of the debt and equity balance. The Company is not subject to any externally imposed capital requirements. Accounting policies A provision is recognized when the Company has a current or implicit legal obligation resulting from a past event, where the obligation can be reliably estimated, and where it is probable that an outflow of resources representing economic benefits will be necessary to settle the obligation. The portion of a provision that become due in less than one year is recorded under current liabilities, and the balance under non-current liabilities. The provisions are discounted when the impact is material. Disclosure is made on any contingent assets and liabilities where the impact is expected to be material, except where the probability of occurrence is low. (amounts in thousands of euros) 12/31/2018 12/31/2019 12/31/2020 Provision for retirement indemnities 347 506 652 Provisions - non-current portion 347 506 652 Other provisions — 71 — Provisions - current portion — 71 — Provision for retirement indemnities - defined benefit plans Accounting policies The French employees of the Company receive the retirement benefits stipulated by law in France: • a compensation paid by the Company to employees upon their retirement (defined-benefit plan); and • a payment of retirement pensions by the social security agencies, which are financed by the contributions made by companies and employees (defined contribution plans in France). The American employees do not receive defined-benefit plan. For the defined-benefit plans, the costs of the retirement benefits are estimated by using the projected credit unit method. According to this method, the cost of the retirement benefit is recognized in the statement of income (loss) so that it is distributed uniformly over the term of the services of the employees. The retirement benefit commitments are valued at the current value of the future payments estimated using, for discounting, the market rate for high quality corporate bonds with a term that corresponds to the estimated term for the payment of the benefits. The difference between the amount of the provision at the beginning of a period and at the close of that period is recognized through profit or loss for the portion representing the costs of services rendered and the net interest costs, and through other comprehensive income for the portion representing the actuarial gains and losses. The Company’s payments for the defined-contribution plans are recognized as expenses on the statement of income (loss) of the period in which they become payable. The regime for retirement indemnities applicable at the Parent Company, is defined by the collective agreement for the pharmaceutical industry in France. The pension commitments are not covered by plan assets. As part of the estimate of the retirement commitments, the following assumptions were used for all categories of employees: 12/31/2018 12/31/2019 12/31/2020 Discount rate 1.57 % 0.77 % 0.34 % Wage increase 2.00 % 2.00 % 2.00 % Social welfare contribution rate 44.00 % 36.00 % 39.00 % - executive employees 54.00 % 50.00 % 51.00 % - executive management 55.00 % 52.00 % 49.00 % Expected staff turnover Medium - High High High - executive management Low Low Low Age of retirement 65 - 67 years 65 - 67 years 65 - 67 years Mortality table INSEE 2014 INSEE 2018 INSEE 2019 The change in the provision for retirement indemnities is as follows: (amounts in thousands of euros) As of December 31, 2017 214 Service costs 75 Financial costs 3 Actuarial gains and losses 55 As of December 31, 2018 347 Service costs 115 Financial costs 6 Actuarial gains and losses 38 As of December 31, 2019 506 Service costs 123 Financial costs 4 Actuarial gains and losses 19 As of December 31, 2020 652 Provision for risks Accounting policies The provisions for risks correspond to the commitments resulting from litigations and various risks whose due dates and amounts are uncertain. The amount recognized as a provision is the best estimate of the expenses necessary to extinguish the obligation. Accounting policies Unless otherwise stated, financial liabilities are initially recognized at fair value less transaction costs and subsequently measured at amortized cost using the effective interest rate method. Financial liabilities with a maturity of more than one year are classified in “Financial liabilities – non-current portion” in accordance with IAS 1. (amounts in thousands of euros) Convertible notes Conditional advances Bank loans Other Total As of December 31, 2017 — 1,181 1,534 128 2,843 Collection — — — — — Amortized cost — — — — — Repayment — — (735) (89) (824) FX rate impact — — — — — As of December 31, 2018 — 1,181 799 39 2,019 Collection — — — 38 38 Fair value of embedded derivatives — — — — — Amortized cost — 140 — — 140 Repayment — — (738) — (738) Reclassification — — — (39) (39) FX rate impact — — — — — As of December 31, 2019 — 1,321 61 38 1,420 Collection 14,155 2,979 10,000 — 27,134 Fair value of embedded derivatives (1,070) — — — (1,070) Amortized cost 1,684 121 20 — 1,825 Conversion (12,600) — — — (12,600) Repayment — — (62) — (62) FX rate impact — — — (3) (3) As of December 31, 2020 2,169 4,421 10,019 35 16,644 Financial liabilities by maturity December 31, 2018 (in thousands of euros) Less than one year One to three years Three to five years More than five years Total Conditional advances — — — 1,181 1,181 Bank loans 737 62 — — 799 Other 39 — — — 39 Total financial liabilities 776 62 — 1,181 2,019 December 31, 2019 (in thousands of euros) Less than one year One to three years Three to five years More than five years Total Conditional advances — — — 1,321 1,321 Bank loans 62 — — — 62 Other — — 38 — 38 Total financial liabilities 62 — 38 1,321 1,421 December 31, 2020 (in thousands of euros) Less than one year One to three years Three to five years More than five years Total Convertible notes 2,169 — — — 2,169 Conditional advances — — — 4,421 4,421 Bank loans 96 3,768 4,069 2,086 10,019 Other — 35 — — 35 Total financial liabilities 2,265 3,803 4,069 6,507 16,644 Accounting policies In accordance with IFRS 9, a financial instrument with all three of the following characteristics is a derivative: • its value changes in response to changes in the so-called “underlying” • it requires no initial net investment, • it is settled at a future date. Derivatives are initially recognized at their fair value and subsequent changes are recognized in financial income (loss). In accordance with IAS 32, a derivative is qualified as an equity instrument only if it will be necessarily settled by exchanging a fixed amount of cash for a fixed amount of equity instruments of the issuer. Equity instruments are initially recognized at their fair value and are not subsequently remeasured. Generally, convertible notes are qualified as compound instruments as they have both a financial liability and an equity component. Because the conversion option is a derivative, if the conversion option does not meet the “fixed-for-fixed” condition, the conversion option is classified as a financial derivative liability. In that case, convertible notes are qualified as hybrid instrument in accordance with IFRS 9 comprising a financial liability for the host contract plus an embedded derivative instrument for the conversion option. The initial bifurcation of a separable embedded derivative does not result in any gain or loss being recognized. Because the embedded derivative component is measured at fair value on initial recognition, the carrying amount of the host contract on initial recognition is the difference between the carrying amount of the hybrid instrument and the fair value of the embedded derivative. On June 24, 2020, the Company signed a financing agreement with Luxembourg-based European High Growth Opportunities Securitization Fund in the form of convertible notes with share subscription warrants attached (“OCABSA”). The Company issued 1,200 note warrants for free that may be exercised in tranches at the Company request until June 25, 2022. European High Growth Opportunities Securitization Fund may request the issuance of two tranches at any time. Each exercise of a note warrant will give rise to the issuance of 60 convertible note with 33,670 warrants attached (or of 30 convertible notes with 16,835 warrants if the Company's market capitalization is lower to €50 million during 20 consecutive trading days). The convertible notes (“OCA”) have the following characteristics: • Nominal value: €50 thousand • Subscription price: 98% of the nominal value • Maturity: 12 months • The notes will not bear interests • Conversion ratio: N = Vn / P where ◦ N is the number of Shares that can be subscribed ◦ Vn is the nominal value of a convertible note ◦ P is the higher of (i) 95% of the volume weighted average trading price of the Company's shares on Euronext Paris during the 3 consecutive trading days preceding the conversion date, (ii) the nominal value of the share and (iii) the minimum issuance price of a share as provided in the 25th resolution of the Shareholder's Meeting held on June 21, 2019 (or any resolution that may succeed it), i.e., to date 80% of the volume-weighted average (in the central order book and excluding off-market block trades) of the Company's share price on Euronext Paris during the 3 trading sessions prior to the pricing of the issue price, it being specified that the theoretical value of the warrants will be taken into account and that the Shareholder's Meeting has set at 10 million the maximum number of shares that may be issued. The share subscription warrants (“BSA”) have the following characteristics: • Maturity: 5 years • Each warrant give the right to subscribe one share • Exercise price: 120% of the lowest volume-weighted average price of the Company's share observed over the fifteen In 2020, the Company issued five tranches of €3.0 million each on July 6, 2020, August 24, 2020, November 17, 2020, December 7, 2020 and December 22, 2020 respectively (of which two tranches were issued on European High Growth Opportunities Securitization Fund request) , representing a total amount of €15.0 million, Consequently, 300 OCA were issued with 168,350 BSA attached. During the financial year, 252 OCA were converted into 2,094,704 shares (see note 4.7). As of December 31, 2020, 48 OCA and 168,350 BSA are outstanding. Analysis and valuation of the components of the convertible notes’ agreement The financing agreement signed with European High Growth Opportunities Securitization Fund includes: • A put and call option linked to the mutual commitment between the Company and the investor linked to note warrants that may be exercised in tranches at the Company request and the possibility for the investor to request the issuance of two tranches. The mutual commitment has been qualified as derivative and has a null value. • At the issuance of a tranche: ◦ A host contract recognized as financial liability; ◦ A conversion option recognized as derivative liability; ◦ Warrants recognized as derivative liability. Despite the fixed exchange parity of these instruments, they cannot be qualified as equity instruments due to a specific clause of the contract. Derivative liabilities fall under category 3 defined by IFRS 13. The financial liability is amortized using the effective interest rate (14.7% in average for the tranches issued in 2020) over the estimated maturity date (2 months in average for the tranches issued in 2020). If the convertible notes are converted before the estimated maturity date, any difference between the fair value of the shares issued and the cumulative amount of the financial liability and the derivative liability at the date of conversion is recognized in financial income (loss). Fair value of the conversion option is estimated with a Monte-Carlo valuation model using the following main assumptions: At the issuance date 12/31/2020 Tranche 1 Tranche 2 Tranche 3 Tranche 4 Tranche 5 Number of convertible notes 60 60 60 60 60 48 Estimated conversion price € 7.51 € 5.77 € 6.04 € 8.31 € 7.02 € 6.75 Expected term 2 months 2 months 1 month, 15 days 1 month, 15 days 1 month, 15 days 1 month Fair value (in thousands of euros) 158 161 159 159 159 129 Fair value of the warrants is estimated with a Black & Scholes valuation model using the following main assumptions: At the issuance date 12/31/2020 Tranche 1 Tranche 2 Tranche 3 Tranche 4 Tranche 5 Number of warrants 33,670 33,670 33,670 33,670 33,670 168,350 Price of the underlying share € 7.88 € 6.08 6.36 8.75 7.39 7.11 Expected dividends — % — % — % — % — % — % Volatility 44 % 44 % 53 % 54 % 55 % 58 % Expected term 2 years, 6 months 2 years, 5 months 2 years, 1 month 2 years, 1 month 2 years 2 years Fair value (in thousands of euros) 60 28 40 86 60 288 Sensitivity analysis as of December 31, 2020 A change in the main assumptions used for the valuation of the conversion option would have no significant impact in the fair value . A change in the following assumptions used for the valuation of the warrants could change the fair value as follows. (in thousands of euros) Price of the underlying share Volatility -10% 7.11 +10% - 10 percentage points 165 221 284 58% 226 288 357 +10 percentage points 286 355 428 Accounting policies Funds received from Bpifrance in the form of conditional advances are recognized as financial liabilities, as the Company has a contractual obligation to reimburse Bpifrance for such conditional advances in cash based on a repayment schedule provided the conditions are complied with. Receipts or reimbursements of conditional advances are reflected as financing transactions in the statement of cash flows. The amount resulting from the benefit of conditional advances that do not bear interest at market rates is considered a subsidy. This benefit is determined by applying a discount rate equal to the rate the Company would have to pay for a bank borrowing over a similar maturity. The implicit interest rate resulting from taking into account all the repayments plus the additional payments due in case of commercial success is used to determine the amount recognized annually as a finance expense. In the event of a change in payment schedule of the stipulated repayments of the conditional advances, the Company recalculates the net book value of the debt resulting from the discounting of the anticipated new future cash flows at the initial effective interest rate. The adjustment that results therefrom is recognized in the consolidated statement of income (loss) for the period during which the modification is recognized. Within the scope of the TEDAC project, Bpifrance granted to the Company a conditional advance for a total amount of €4,895 thousand. This conditional advance is paid upon completion of the following key milestones: • €63 thousand upon signature of the agreement (received in 2012) • €1,119 thousand upon the milestone n°4 (received in 2016) • €2,979 thousand upon the milestone n°6 (received in 2020) • the remainder upon calls for funds when key milestones are reached (not yet received) The Company undertakes to repay Bpifrance: a) an amount of €5,281 thousand upon achieving cumulative sales (excluding VAT) equal to or greater than €10 million, according to the following payment schedule: • €500 thousand at the latest on June 30 of the first year in which the cumulative sales condition is achieved, • €750 thousand at the latest on June 30 of the second year, • €1,500 thousand at the latest on June 30 of the third year, • €2,531 thousand at the latest on June 30 of the fourth year, b) and, where applicable, an annuity equal to 50% |
