UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM

10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, ~~2021~~

2022

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from
to

Commission file number 001-36697

DBV TECHNOLOGIES S.A.

(Exact name of registrant as specified in its charter)


France		Not applicable
State or other jurisdiction of incorporation or organization		(I.R.S. Employer Identification No.)

177-181 avenue Pierre Brossolette Montrouge France		92120
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code +33 1 55 42 78 78

Securities registered pursuant to Section

12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
American Depositary Shares, each representing one-half of one ordinary share, nominal value €0.10 per share	DBVT	The Nasdaq Stock Market LLC
Ordinary shares, nominal value €0.10 per share*	n/a	The Nasdaq Stock Market LLC

*	Not for trading, but only in connection with the registration of the American Depositary Shares.

Securities registered pursuant to section 12(g) of the Act: None.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation

S-T (§

(§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a

non-accelerated

filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule

12b-2

of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☐

Non-accelerated filer	☒	Smaller reporting company	☒

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). ☐ Yes ☒ No

As of April ~~30, 2021,~~29, 2022, the registrant had ~~54,936,687~~

55,096,537 ordinary

shares, nominal value €0.10 per share, ~~outstanding.~~

outstanding including treasury shares

Table of contents


		Page
Part I	Financial information		1
Item 1	Condensed Consolidated Statements of Financial Position (Unaudited) as of March ~~31,2021~~31, 2022 and December 31, ~~2020~~2021		1
	Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) for the Three Months Ended March 31, ~~2021~~2022 and ~~2020~~2021		2
	Condensed Consolidated Statements of Cash Flows (Unaudited) for the Three Months Ended March 31, ~~2021~~2022 and ~~2020~~2021		3
	Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) for the Three Months Ended March 31, ~~2021~~2022 and ~~2020~~2021		4
	Notes to the ~~Condensed Consolidated~~ Financial Statements (Unaudited)		5
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations		1315
Item 3	Quantitative and Qualitative Disclosures About Market Risk		1720
Item 4	Controls and Procedures		1721

Part II	Other ~~information~~Information		1822
Item 1	Legal Proceedings		1822
Item 1A	Risk Factors		1822
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds		1822
Item 3	Defaults Upon Senior Securities		1822
Item 4	Mine Safety Disclosures		1822
Item 5	Other Information		1822
Item 6	Exhibits		1923

Unless the context otherwise requires, we use the terms “DBV,” “DBV Technologies,” the “Company,” “we,” “us” and “our” in this Quarterly Report on Form 10-Q to refer to DBV Technologies S.A. and, where appropriate, its consolidated subsidiaries. “Viaskin

™

”, “EPIT

™

” and our other registered and common law trade names, trademarks and service marks are the property of DBV Technologies S.A. or our subsidiaries. All other trademarks, trade names and service marks appearing in this prospectus are the property of their respective owners. Solely for convenience, the trademarks and trade names in this Quarterly Report on Form 10-Q may be referred to without the

and

™

symbols, but such references should not be construed as any indicator that their respective owners will not assert their rights thereto.

SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS.

This Quarterly Report on Form

10-Q, ~~(“Form~~ ~~10-Q”)~~

or Quarterly Report contains forward-looking statements which are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended ~~(the “Securities Act”),~~or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, ~~(the “Exchange Act”).~~or the Exchange Act. These statements may be identified by such forward-looking terminology as “may,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue” or variations of these words or similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain these words. Any forward-looking statement involves known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statement. Forward-looking statements include statements, other than statements of historical fact, about, among other things:

~~statements regarding~~

the impact of the ongoing

COVID-19

pandemic, including the emergence of new variant strains of COVID-19, and its effects on our operations, research and development, ~~and~~ clinical trials and ability to obtain financing and potential disruption in the operations and business of third-party manufacturers, contract research organizations, or CROs, other service providers and collaborators with whom we conduct business;

•

~~our expectations regarding the timing or likelihood of regulatory filings and approvals, including with respect to our anticipated~~ ~~re-submission~~ ~~of a Biologics License Application for Viaskin~~^TM ~~Peanut to the U.S. Food and Drug Administration;~~

our ability to continue as a going concern;

our expectations regarding the timing or likelihood of regulatory filings and approvals, including with respect to our anticipated

re-submission

of a Biologics License Application, or a BLA, for Viaskin

Peanut to the U.S. Food and Drug Administration, or the FDA;

the initiation, timing, progress and results of our

pre-clinical

studies and clinical trials, and our research and development programs;

the sufficiency of existing capital resources;

~~the implementation of our global restructuring plan,~~

our business model and our other strategic plans for our business, product candidates and technology;

our ability to manufacture clinical and commercial supplies of our product candidates and comply with regulatory requirements related to the manufacturing of our product candidates;

our ability to build our own sales and marketing capabilities, or seek collaborative partners, to commercialize Viaskin Peanut and/or our other product candidates, if approved;

the commercialization of our product candidates, if approved;

our expectations regarding the potential market size and the size of the patient populations for Viaskin Peanut and/or our other product candidates, if approved, and our ability to serve such markets;

the pricing and reimbursement of our product candidates, if approved;

the rate and degree of market acceptance of Viaskin Peanut and/or our other product candidates, if approved, by physicians, patients, third-party payors and others in the medical community;

our ability to advance product candidates into, and successfully complete, clinical trials;

the scope of protection we are able to establish and maintain for intellectual property rights covering our product candidates and technology;

estimates of our expenses, future revenues, capital requirements and our needs for additional financing;

the potential benefits of strategic collaboration agreements and our ability to enter into strategic arrangements;

our ability to maintain and establish collaborations or obtain additional grant funding;

our financial performance;

and

~~developments relating to our competitors and our industry, including competing therapies; and~~

other risks and uncertainties, including those listed under the caption “Risk Factors.”

Although we believe that we have a reasonable basis for each forward-looking statement contained in this Quarterly Report, ~~on Form~~ ~~10-Q,~~ these statements are based on our estimates or projections of the future that are subject to known and unknown risks and uncertainties and other important factors that may cause our actual results, level of activity, performance, experience or achievements to differ materially from those expressed or implied by any forward-looking statement. These risks, uncertainties and other factors are described in greater detail under the caption “Risk Factors” in Part I. Item 1A of our Annual Report on Form

10-K

for the year ended December 31, ~~2020,~~2021, filed with the Securities and Exchange Commission, ~~(“SEC”)~~or the SEC, on March ~~17, 2021.~~9, 2022. As a result of the risks and uncertainties, the results or events indicated by the forward-looking statements may not occur. Undue reliance should not be placed on any

forward-looking

statement. We qualify all of our forward-looking ~~statement.~~

statements by these cautionary statements.

In addition, any forward-looking statement in this ~~Annual~~Quarterly Report, including statements that “we believe” and similar statements, reflect our beliefs and opinions on the relevant subject and represents our views only as of the date of this ~~annual report~~Quarterly Report and should not be relied upon as representing our views as of any subsequent date. These statements are based upon information available to us as of the date of this Quarterly Report and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and you are cautioned not to unduly rely upon these statements. We anticipate that subsequent events and developments may cause our views to change. Although we may elect to update these forward-looking statements publicly at some point in the future, we specifically disclaim any obligation to do so, except as required by applicable law. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments we may make.

Part I – Financial Information

Item 1. Financial Statements

DBV Technologies S.A.

Condensed Consolidated Statements of Financial Position (unaudited)

(amounts in thousands, except share and per share data)

      March 31, December 31,
   Note    2021 2020
Assets

Current assets :

Cash and cash equivalents
   3    $ 152,459 $ 196,352
Trade receivables
      —   2,230
Other current assets
      7,349 8,792


Total current assets
      159,809 207,375
Property, plant, and equipment, net
      21,526 24,792
Right-of-use assets related to operating leases
      9,168 10,104
Intangible assets
      32 41
Other non-current assets
      30,870 29,935


Total non-current assets
      61,596 64,871


Total Assets
      $ 221,405 $ 272,246


Liabilities and shareholders’ equity

Current liabilities:

Trade payables
   4    $ 17,176 $ 20,338
Short-term operating leases
      3,314 3,708
Short-term financial debt
      701 724
Current contingencies
   6    4,246 5,016
Other current liabilities
   4    13,394 22,926


Total current liabilities
      38,831 52,713


Long-term operating leases
      9,533 10,496
Long-term financial debt
      350 543
Non-current contingencies
   6    2,229 2,527
Other non-current liabilities
      1,286 475


Total non-current liabilities
      13,398 14,042


Total Liabilities
      $ 52,229 $ 66,754


Shareholders’ equity :

Ordinary shares, €0.10 par value; 54,936,687 and 54,929,187 shares authorized, and issued as at March 31, 2021 and December 31, 2020, respectively, and 4,100,663 and 4,029,763 shares outstanding as at March 31, 2021 and December 31, 2020, respectively
      $ 6,519 $ 6,518
Additional paid-in capital
      1,153,516 1,152,042
Treasury stock, 60,588 and 112,302 ordinary shares as of March 31, 2021 and December 31, 2020, respectively, at cost
      (681 ) (1,169 )
Accumulated deficit
      (987,992 ) (958,543 )
Accumulated other comprehensive income
      399 484
Accumulated currency translation effect
      (2,586 ) 6,158


Total Shareholders’ equity
      $ 169,176 $ 205,491


Total Liabilities and Shareholder’s equity
      $ 221,405 $ 272,246

March 31,

December 31,


Note

2022

2021

Assets

Current assets:

Cash and cash equivalents

3
   $ 74,107 $ 77,301
Other current assets

4
   16,329 37,085


Total current assets


90,437

114,386

Property, plant, and equipment, net
      17,196 18,146
Right

of

use
assets related to operating leases

5
   3,356 7,336
Intangible assets
      18 22
Other
non-current
assets
      6,575 6,833


Total
non-current
assets


27,144

32,338



Total Assets

$
117,581

$
146,723



Liabilities and shareholders’ equity

Current liabilities:

Trade payables

6
   $ 11,416 $ 11,429
Short-term operating leases

5
   2,034 3,003
Short-term financial debt
      333 510
Current contingencies

8
   3,529 4,095
Other current liabilities

6
   8,719 12,361


Total current liabilities


26,031

31,397



Long-term operating leases

5
   2,268 7,147
Non-current
contingencies

8
   5,758 6,758
Other
non-current
liabilities
      1,461 2,147


Total current liabilities


9,488

16,052



Total Liabilities

$
35,519

$
47,449



Shareholders’ equity:

Ordinary shares, €0.10 par value; 55,096,537 and 55,095,762
shares authorized, and issued as at March 31, 2022 and December 31, 2021, respectively
      $ 6,539 $ 6,538
Additional
paid-in
capital
      359,478 358,115
Treasury stock, 144,501 and 153,631
ordinary shares as of March 31, 2022 and December 31, 2021, respectively, at cost
      (1,193 ) (1,232 )
Accumulated deficit
      (275,219 ) (258,528 )
Accumulated other comprehensive income
      543 519
Accumulated currency translation effect
      (8,086 ) (6,137 )


Total Shareholders’ equity

$
82,062

$
99,274



Total Liabilities and
s
hareholder’s equity

$
117,581

$
146,723

The accompanying notes are an integral part of these condensed consolidated financial statements.

DBV Technologies S.A.

Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited)

(amounts in thousands, except share and per share data)

      Three Months Ended March
31,
   Note    2021 2020
Operating income
   7    $ 2,941 $ 4,720
Operating expenses

Research and development expenses
      (22,164 ) (27,532 )
Sales and marketing expenses
      (729 ) (7,297 )
General and administrative expenses
      (9,683 ) (11,113 )


Total Operating expenses
      (32,575 ) (45,942 )


Loss from operations
      (29,634 ) (41,222 )


Financial income
      215 309


Loss before taxes
      (29,419 ) (40,913 )


Income tax
      (30 ) —


Net loss
      $ (29,449 ) $ (40,913 )


Other comprehensive loss

Foreign currency translation differences, net of taxes
      (8,744 ) (6,064 )
Actuarial (losses) gains on employee benefits, net of taxes
      (85 ) 189


Comprehensive loss
      $ (38,279 ) $ (46,788 )


Basic/diluted Net loss per share attributable to shareholders
   11    $ (0.54 ) $ (0.79 )
Weighted average shares outstanding used in computing per share amounts:
      54,880,776 51,802,524

Three months Ended

March 31,


Note

2022

2021

Operating income


9


$
2,546

$
2,941

Operating expenses

Research and development expenses
      (12,223 ) (22,164 )
Sales and marketing expenses
      (464 ) (729 )
General and administrative expenses
      (6,630 ) (9,683 )


Total Operating expenses


(19,317
)

(32,575
)


Loss from operations


(16,771
)

(29,634
)


Financial income
      152 215


Loss before taxes


(16,619
)

(29,419
)


Income tax
      (87 ) (30 )


Net loss

$
(16,706)

$
(29,449)



Foreign currency translation differences, net of taxes
      (1,933 ) (8,744 )
Actuarial gains (loss) on employee benefits, net of taxes
      24 (85 )


Total comprehensive loss

$
(18,615
)

$
(38,279
)


Basic/diluted net loss per share attributable to shareholders

13


$
(0.30
)

$
(0.54
)

Weighted average number of shares outstanding used in computing per share amounts:
      54,932,192 54,880,776

The accompanying notes are an integral part of these condensed consolidated financial statements.

DBV Technologies S.A.

Condensed Consolidated Statements of Cash Flows (unaudited)

(amounts in thousands)

      Three Months Ended March 31,
   Notes    2021 2020
Net loss for the period
      $ (29,449 ) $ (40,913 )
Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation, amortization and accrued contingencies
      1,483 1,548
Retirement pension obligations
      —   109
Expenses related to share-based payments
      1,433 3,073
Other elements
      (456 ) 419
Changes in operating assets and liabilities:

Decrease (increase) in inventories and work in progress
      —   (2,402 )
Decrease (increase) in trade receivables
      2,101 —
Decrease (increase) in other current assets
      (417 ) 122
(Decrease) increase in trade payables
      (2,567 ) (3,212 )
(Decrease) increase in other current and non-current liabilities
      (7,980 ) (8,382 )
Change in operating lease liabilities and right of use assets
      (353 ) (45 )
Net cash flow used in operating activities
      (36,204 ) (49,683 )


Cash flows used in investing activities:

Acquisitions of property, plant, and equipment, net from proceeds
      (184 ) (816 )
Acquisitions of intangible assets
      —   (114 )
Acquisitions of non-current financial assets
      (1 ) —


Net cash flows used in investing activities
      (185 ) (930 )


Cash flows provided by financing activities:

(Decrease) increase in conditional advances
      (164 ) 7
Treasury shares
      578 (412 )
Capital increases, net of transaction costs
      42 151,023
Other cash flows related to financing activities
      (17 ) (7 )


Net cash flows provided by financing activities
      440 150,611


Effect of exchange rate changes on cash and cash equivalents
      (7,944 ) (5,811 )


Net (decrease) / increase in cash and cash equivalents
      (43,893 ) 94,187


Net Cash and cash equivalents at the beginning of the period
      196,352 193,255


Net cash and cash equivalents at the end of the period
   3    $ 152,459 $ 287,442

Three months Ended March 31,


Notes

2022

2021

Net loss for the period

Adjustments to reconcile net loss to net cash used in operating activities:

$
(16,706
)

$
(29,449
)
Depreciation, amortization and accrued contingencies
      (599 ) 1,483
Retirement pension obligations
      (9 ) 0
Expenses related to share-based payments
      1,363 1,433
Other elements
      (3 ) (456 )
Changes in operating assets and liabilities:

Decrease (increase) in trade receivables
      0   2,101
Decrease (increase) in other current assets
      20,458 (417 )
(Decrease) increase in trade payables
      (19 ) (2,567 )
(Decrease) increase in other current and
non-current
liabilities
      (4,118 ) (7,980 )
Change in operating lease liabilities and right of use assets
      (1,849 ) (353 )


Net cash flow used in operating activities


(1,483
)

(36,204
)


Cash flows provided by (used in) investing activities:

Acquisitions of property, plant, and equipment
      (131 ) (184 )
Proceeds from property, plant and equipment dispositions
      3 0
Acquisitions of
non-current
financial assets
      (40 ) (1 )
Proceeds from
non-current
financial assets
      179 0


Net cash flows provided by (used in) investing activities


11

(185
)


Cash flows (used in) provided by financing activities:

(Decrease) in conditional advances
      (168 ) (164 )
Treasury shares
      40 578
Capital increases, net of transaction costs
      0   42
Other cash flows related to financing activities
      0   (17 )


Net cash flows (used in) provided by financing activities


(129
)

440



Effect of exchange rate changes on cash and cash equivalents
      (1,594 ) (7,944 )


Net decrease in cash and cash equivalents


(3,194
)

(43,893
)


Net cash and cash equivalents at the beginning of the period
      77,301 196,352


Net cash and cash equivalents at the end of the period

3

$
74,107

$
152,459

The accompanying notes are an integral part of these condensed consolidated financial statements.

DBV Technologies S.A.

Condensed Consolidated Statements of Changes in Shareholders’ Equity (unaudited)

(amounts in thousands, except share and per share data)

Ordinary shares
Number of
Shares Amount Additional
paid-in
capital Treasury
stock Accumulated
deficit Accumulated
other
comprehensive
income
(loss) Accumulated
currency
translation
effect Total
Shareholders’
Equity
Balance at January 1, 2020
47,028,510 $ 5,645 $ 1,003,595 $ (230 ) $ (798,988 ) $ 108 $ (16,945 ) $ 193,186
Net (loss)
—   —   —   —   (40,913 ) —   —   (40,913 )
Other comprehensive income (loss)
—   —   —   —   —   189 (6,064 ) (5,875 )
Issuance of ordinary shares
7,898,677 873 150,150 —   —   —   —   151,023
Treasury shares
—   —   —   (832 ) —   —   —   (832 )
Share-based payments
—   —   3,073 —   —   —   3,073

Balance at March 31, 2020
54,927,187 $ 6,518 $ 1,156,818 $ (1,062 ) $ (839,901 ) $ 297 $ (23,009 ) $ 299,662
Ordinary shares
Number of
Shares Amount Additional
paid-in
capital Treasury
stock Accumulated
deficit Accumulated
other
comprehensive
gain
(loss) Accumulated
currency
translation
effect Total
Shareholders’
Equity
Balance at January 1, 2021
54,929,187 $ 6,518 $ 1,152,042 $ (1,169 ) $ (958,543 ) $ 484 $ 6,158 $ 205,491
Net (loss)
—   —   —   —   (29,449 ) —   —   (29,449 )
Other comprehensive (loss)
—   —   —   —   —   (85 ) (8,744 ) (8,829 )
Issuance of ordinary shares
7 500 1 42 —   —   —   —   42
Treasury shares
—   —   —   488 —   —   —   488
Share-based payments
—   —   1,433 —   —   —   —   1,433

Balance at March 31, 2021
54,936,687 $ 6,519 $ 1,153,516 $ (681 ) $ (987,992 ) $ 399 $ (2,586 ) $ 169,176

Ordinary shares


Number of

Shares

Amount

Additional

paid-in

capital

Treasury

stock

Accumulated

deficit

Accumulated

other

comprehensive

income (loss)

Accumulated

currency

translation

effect

Total

Shareholders’

Equity

Balance at January 1, 2021


54,929,187


$
6,518


$
1,152,042


$
(1,169
)

$
(958,543
)

$
484

$
6,158

$
205,491

Net (loss)
   —      —      —      —   (29,449 ) —   —   (29,449 )
Other comprehensive loss
   —      —      —      —   —   (85 ) (8,744 ) (8,829 )
Issuance of ordinary shares
   7,500    1    42    —   —   —   —   42
Treasury shares
   —      —      —      488 —   —   —   488
Share-based payments
   —      —      1,433    —   —   —   —   1,433








Balance at March 31, 2021


54,936,687


$
6,519


$
1,153,516


$
(681
)

$
(987,992
)

$
399

$
(2,586
)

$
169,176


Ordinary shares


Number of

Shares

Amount

Additional

paid-in

capital

Treasury

stock

Accumulated

deficit

Accumulated

other

comprehensive

income (loss)

Accumulated

currency

translation

effect

Total

Shareholders’

Equity

Balance at January 1, 2022


55,095,762


$
6,538


$
358,115


$
(1,232
)

$
(258,528
)

$
519

$
(6,137
)

$
99,274

Net (loss)
   —      —      —      —   (16,706 ) —   —   (16,706 )
Other comprehensive loss
   —      —      —      —   —   24 (1,933 ) (1,909 )
Issuance of ordinary shares
   775    1    0      —   —   —   —   1
Treasury shares
   —      —      —      40 —   —   —   40
Share-based payments
   —      —      1,363    —   —   —   —   1,363
Other changes
   —      —      —      —   15 (15 ) —








Balance at March 31, 2022


55,096,537


$
6,539


   $
359,478


$
(1,193
)

$
(275,219
)

$
543


$
(8,086
)

$
82,062

The accompanying notes are an integral part of these condensed consolidated financial statements.

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)

Note 1: The Company

Incorporated in 2002 under the laws of France, DBV Technologies S.A. (“DBV Technologies,” or the “Company”, or the “group”) is a

clinical-stage

specialty biopharmaceutical company focused on changing the field of immunotherapy by developing a novel technology platform called Viaskin^{™
. The Company’s therapeutic approach is based on epicutaneous immunotherapy, or EPIT^{™
, a proprietary method of delivering biologically active compounds to the immune system through intact skin using Viaskin^™
.}}

Basis of Presentation

The condensed consolidated financial statements of the Company and its

wholly-owned

subsidiaries are unaudited and have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and ~~are~~ presented in thousands of U.S. ~~dollars.~~Dollars, except for share and per share data and as otherwise noted. All significant intercompany accounts and transactions between the Company and its subsidiaries have been eliminated on consolidation.

The unaudited condensed consolidated financial statements presented in this Quarterly Report should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form

10-K

filed with the SEC on March ~~17, 2021~~9, 2022 (the “Annual Report”). The condensed consolidated statement of financial position at December 31, ~~2020~~2021 was derived from the audited consolidated financial statements but does not include all disclosures required by U.S. GAAP. The Company’s critical accounting policies are detailed in the Annual Report. The Company’s critical accounting policies have not changed materially since December 31, ~~2020.~~

2021.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted from these interim financial statements. However, these condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary to fairly state the results of the interim period. These interim financial results are not necessarily indicative of results to be expected for the full fiscal year ending December 31, ~~2021,~~2022, or any other future period.

Use of estimates

The preparation of the Company’s condensed consolidated financial statements requires the use of estimates, assumptions and judgments that affect the reported amounts of assets, liabilities, and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amount of income and expenses during the period. The Company bases its estimates and assumptions on historical experience and other factors that it believes to be reasonable under the circumstances. The Company evaluates its estimates and assumptions on an ongoing basis. The actual results may differ from these estimates.

On an

on-going

basis, management evaluates its estimates, primarily those related to: (1) evaluation of costs and measure of progress of the development activities conducted as part of the collaboration agreement with Nestlé Health Science, (2) research tax credits, (3) assumptions used in the valuation of right of use assets - operating lease, (4) impairment of~~right-of-use~~

right

use

assets related to leases and property, plant and equipment, (5) recoverability of the Company’s net deferred tax assets and related valuation allowance, (6) assumptions used in the valuation model to determine the fair value and vesting conditions of share-based compensation plan and, (7) estimate of contingencies.

Going concern

These condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. The going concern assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. However, substantial doubt about the Company’s ability to continue as a going concern exists.

Since its inception, the Company has primarily funded its operations with equity financings, and, to a lesser extent, public assistance aimed at supporting innovation and payments associated with research tax credits (Cré

Crédit d’~~Imp~~ôd’Impôt Recherche

). The Company does not generate product revenue and continues to prepare for the potential launch of its first product in the United States and in the European Union, if approved.

Following receipt of a Complete Response Letter (“CRL”) from the U.S. Food and Drug Administration (“FDA”) in connection with its Biologics License Application (“BLA”) for Viaskin^{™
Peanut, beginning in August 2020, the Company scaled down its other clinical programs andpre-clinical
spend to focus on Viaskin^{™
Peanut. TheIn response, the Company also initiatedimplemented a global restructuring plan in June 2020 to provide operational latitude to progress the clinical development and regulatory review of Viaskin^{™
Peanut in the United States and European Union. Based on guidanceThis restructuring plan was completed in the second half of 2021.}}}

In January 2021, the Company received written responses from the FDA to questions provided in the Type A meeting request the Company submitted in October 2020 following the CRL. In order to respond to the FDA’s requests and recommendations, the Company defined parallel workstreams primarily in order to generate the

6-month

safety and adhesion clinical data to assess a modified Viaskin Peanut patch and demonstrate the equivalence in allergen uptake between the current and modified patches in the intended patient population.

Following the submission of the adhesion study’s protocol to the FDA, the Company received an Advice/Information Request letter from the FDA in ~~January~~October 2021, requesting a stepwise approach to the modified Viaskin patch development program and provided partial feedback on this protocol. In December 2021, the ~~Company’s~~Company decided not to pursue the stepwise approach to the development plans for Viaskin Peanut as requested by the FDA in the October 2021 feedback and announced its plan to ~~implement such guidance,~~initiate a pivotal Phase 3 clinical study for a modified Viaskin Peanut patch (mVP) in children ages 4-11. The Company considers this trial as the most straightforward approach to demonstrate effectiveness, safety, and ~~expected cost savings from implementation~~improved adhesion of the ~~global restructuring~~modified Viaskin Peanut system. After receiving agreement from the FDA for its change in strategy, the protocol for the new Phase 3 pivotal study of the modified Viaskin Peanut (“mVP”) patch was completed at the end of February 2022

and was submitted to the FDA in April 2022.

The

ompany has been granted a Type C meeting by the FDA

, which is expected to be held

in the second quarter of 2022

to align on the new Phase

study protocol.

The Company has incurred operating losses and negative cash flows from operations since inception. As of the date of the filing, the Company’s available cash and cash equivalents are not projected to be sufficient to support its operating plan for at least the next 12 months. As such, there is substantial doubt regarding the Company’s ability to continue as a going concern.

Based on its current operations, as well as its plans and assumptions as revised pursuant to its change of strategy, announced in December 2021, the Company expects that its ~~current~~ balance of cash and cash equivalents of ~~$152.5~~$74.1 million as of March 31, ~~2021~~2022 will be sufficient to fund its operations ~~for at least~~into the ~~next 12 months.~~

first quarter of 2023.

The Company intends to seek additional capital as it prepares for the new pivotal study and launch of Viaskin Peanut, if approved, and continues other research and development efforts. The Company may seek to finance its future cash needs through a combination of public or private equity or debt financings, collaborations, license and development agreements and other forms of

non-dilutive

financings. ~~As a result of disruptions to the global financial markets as a result of the ongoing~~ ~~COVID-19~~ ~~pandemic, the~~

The Company cannot guarantee that it will be able to obtain the necessary financing to meet its needs or to obtain funds at attractive terms and conditions. The ongoing

COVID-19

pandemic has already caused extreme volatility and disruptions in the capital and credit markets. A severe or prolonged economic downturn could result in a variety of risks to the Company, including reduced ability to raise additional capital when needed or on acceptable terms, if at all.

If the Company is not successful in its financing objectives, the Company could have to scale back its operations, notably by delaying or reducing the scope of its research and development efforts or obtain financing through arrangements with collaborators or others that may require the Company to relinquish rights to its product candidates that the Company might otherwise seek to develop or commercialize independently.

These Consolidated Financial Statements do not include any adjustments to the carrying amounts and classification of assets, liabilities, and reported expenses that may be necessary if the Company were unable to continue as a going concern

Accounting Pronouncements adopted in ~~2021~~

~~Effective January 1, 2021, the~~2022

The Company ~~adopted ASU~~ ~~2019-12, Income~~ ~~Taxes (Topic 740)—Simplifying the Accounting for Income Taxes, which is intended~~

has

not adopt any new accounting pronouncements in 2022

to ~~simplify accounting for income taxes. It removes certain exceptions to the general principles in Topic 740 and amends existing guidance to improve consistent application. The adoption of ASU~~ ~~2019-12~~ ~~did not have a material impact on the Company’s financial position or results of operations.~~

date.

Accounting Pronouncements issued not yet adopted

In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13 - Financial Instruments - Credit losses, which replaces the incurred loss impairment methodology for financial instruments in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The FASB has issued ASU

2019-10

which has resulted in the postponement of the effective date of the new guidance for eligible smaller reporting companies to the fiscal year beginning January 1, 2023. The guidance must be adopted using a modified-retrospective approach and a prospective transition approach is required for debt securities for which an

other-than-temporary

impairment had been recognized before the effective date. The Company is currently evaluating the impact of the guidance on its Consolidated Financial Statements. The Company does not expect this new standard will have a material impact on its consolidated financial statements.

~~In January 2017, the FASB issued ASU~~ ~~2017-04, Simplifying~~ the Test for Goodwill Impairment, which modifies the goodwill impairment test and requires an entity to write down the carrying value of goodwill for the amount by which the carrying amount of a reporting unit exceeds its fair value. The FASB has issued ASU ~~2019-10~~ which has resulted in the postponement of the effective date of the new guidance for eligible smaller reporting companies to the fiscal year beginning January 1, 2023. The Company does not expect this new standard will have a material impact on its consolidated financial statements.

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s Consolidated Financial Statements upon adoption.

Note 2: Significant Events and Transactions

Clinical programs

Viaskin^TM Peanut for children ages 4-11

- United States Regulatory History and Current Status

In January 2020, the Company announced positive topline results of the three-year, open-label extension of its Phase III PEPITES trial, or PEOPLE trial, evaluating the long-term efficacy and safety of investigational Viaskin Peanut in peanut-allergic children ages 4 to 11 years. The results demonstrated long-term clinical benefit as shown by an increase in eliciting dose (“ED”), which may decrease the chance of reacting to an accidental peanut exposure. After three years, the Company observed that 75.9% (107/141) of patients had increased their ED from baseline, and 51.8% (73/141) of patients reached an ED of at least 1,000 mg peanut protein by year three. The safety profile of Viaskin Peanut was consistent with that observed in the clinical program to date in over 1,000 patients. During the PEOPLE trial, the most common adverse events were mild to moderate skin reactions localized to the administration site, and there was no epinephrine use deemed related to treatment. No treatment related serious adverse events were reported. One patient experienced one case of mild anaphylaxis that was determined by the investigator to be possibly related to treatment and resolved without anti-anaphylactic treatment. Treatment compliance remained high throughout the study at a mean of 98% over three years of treatment. Low discontinuations due to adverse events were observed.

In February 2020, the FDA announced an Allergenic Products Advisory Committee meeting to be held on May 15, 2020 to discuss the Biologics License Application (BLA) for Viaskin Peanut. On March 16, 2020, the Company announced that the FDA had informed us that during its ongoing review of the Company’s BLA for Viaskin Peanut, it had identified questions regarding efficacy, including the impact of patch-site adhesion. Therefore, the Advisory Committee meeting to discuss the BLA originally scheduled on May 15, 2020 was cancelled.

On August 4, 2020, the Company announced that FDA has issued a Complete Response Letter in which the FDA indicated it could not approve the Viaskin Peanut BLA in its current form. The FDA identified concerns regarding the impact of patch-site adhesion on efficacy and indicated the need for patch modifications, and subsequently a new human factor study. The FDA also indicated that supplementary clinical data would need to be generated to support the modified patch. In addition, the FDA requested additional Chemistry, Manufacturing and Controls, or CMC, data. The FDA did not raise any safety concerns related to Viaskin Peanut.

~~On January 13,~~ 2021, the Company received written responses from the FDA to questions provided in the Type A meeting request the Company submitted in October 2020 following the CRL. The Company believes the FDA feedback provides a well-defined regulatory path forward. In exchanges with the FDA, the Company proposed potential resolutions to two main concerns identified by the FDA in the CRL: the impact of patch adhesion and the need for patch modifications. The FDA agreed with ~~the Company’s~~its position that a modified Viaskin Peanut patch should not be considered as a new product entity provided the occlusion chamber of the current Viaskin Peanut patch and the peanut protein dose of 250 ~~µg (approximately~~

µg

(approximately 1/1000 of one peanut) remains unchanged and performs in the same way it has performed previously. In order to confirm the consistency of efficacy data between the existing and a modified ~~patches, the~~patch, FDA ~~has~~

requested an assessment comparing the uptake of allergen (peanut protein) between the patches in peanut allergic children ages ~~4 to 11 years.~~

4-11.

The Company named that assessment EQUAL, which stands for Equivalence in Uptake of ALlergen. The FDA also recommended conducting a

6-month,

well-controlled safety and adhesion trial to assess ~~the~~a modified Viaskin Peanut patch in the intended patient population.

~~On November 2, 2020,~~ The Company later named this study STAMP, which stands for Safety, Tolerability, and Adhesion of Modified Patches

Based on the January 2021 FDA feedback, the Company defined three parallel workstreams:

1. Identify a modified Viaskin patch (which the Company calls mVP).

2. Generate the

6-month

safety and adhesion clinical data FDA requested via STAMP, which the Company expected to be the longest component of the mVP clinical plan. The Company prioritized the STAMP protocol submission so the Company could begin the study as soon as possible.

3. Demonstrate the equivalence in allergen uptake between the current and modified patches in the intended patient population via EQUAL. The complexity of EQUAL hinged on the lack of established clinical and regulatory criteria to characterize allergen uptake via an epicutaneous patch. To support those exchanges, the Company outlined its proposed approach to demonstrate allergen uptake equivalence between the two patches, and allotted time to generate informative data through two additional studies:

PREQUAL, a Phase I study with adult healthy volunteers to optimize the allergen sample collection methodologies and validate the assays we intend to use in EQUAL

‘EQUAL in adults’—a second Phase I study with adult healthy volunteers to compare the allergen uptake of cVP and Mvp;

In March 2021, the Company commenced CHAMP (Comparison of adHesion Among Modified Patches), a trial in healthy adult volunteers to evaluate the adhesion of five modified Viaskin Peanut patches, to identify the one or two best-performing patches, which the Company completed in the second quarter of 2021. Based on the adhesion parameters studied, the Company selected the modified patch to advance to further clinical testing in the intended patient population. All modified Viaskin Peanut patches demonstrated better adhesion performance as compared to the then-current Viaskin Peanut patch, and the Company then selected two modified patches that performed best out of the five modified patches studied for further development. The Company then selected the circular patch for further development, which is approximately 50% larger in size relative to the current patch and circular in shape.

In May 2021, the Company submitted its proposed STAMP protocol to the FDA, and

October 2021, the Company received an Advice/Information Request letter from the FDA. In this letter, the FDA requested a stepwise approach to the modified Viaskin patch development program and provided partial feedback on the STAMP protocol. Specifically, the FDA requested that the Company conduct allergen uptake comparison studies (i.e., ‘EQUAL in Adults’, EQUAL), and submit the allergen uptake comparison data for FDA review and feedback prior to starting the STAMP study. The FDA’s explanation was that the results from the allergen uptake studies might affect the design of the STAMP study.

After careful review of the FDA’s information requests and consideration of all other options, in December 2021, the Company decided not to pursue the stepwise approach to the development plans for Viaskin Peanut as requested by the FDA in the October 2021 feedback. The Company estimated that the FDA’s newly proposed sequential approach would require at least five rounds of exchanges that necessitate FDA alignment prior to initiating STAMP, the

6-month

safety and adhesion study. The Company does not believe this approach to be in the best interest of patients due to the significant time delays associated with FDA review of a resource dependent

(non-PDUFA)

product. As such, in December 2021, the Company announced it plans to initiate a pivotal Phase

—placebo-controlled efficacy trial for a modified Viaskin Peanut patch (mVP) in children ages 4-11. The study will also include updates to the Instructions for Use (IFU). The Company considers this trial the most straightforward to demonstrate effectiveness, safety, and improved adhesion of the modified Viaskin Peanut system. The FDA has confirmed the Company’s change in strategy is agreeable via oral and written exchanges. The protocol for the new Phase 3 pivotal study of the modified Viaskin Peanut (“mVP”) patch was completed at the end of February 2022

and was submitted to the FDA in April 2022. The Company

has been granted a Type C meeting by the FDA in the second quarter of 2022 to align on the new Phase

study protocol.

Viaskin Peanut for children ages 4-11 - European Union Regulatory History and Current Status

In August 2021, the Company announced it has received from the EMA the Day 180 list of outstanding issues, which is an established part of the prescribed EMA review process. It is a letter that ~~its~~is meant to include any remaining questions or objections at that stage in the process. The EMA indicated many of their objections and major objections from the Day 120 list of questions had been answered. One major objection remained at Day 180. The Major Objection questioned the limitations of the data, for example, the clinical relevance and effect size supported by a single pivotal study.

In December 2021, the Company announced it has withdrawn the Marketing Authorization Application ~~or MAA,~~ for Viaskin Peanut had been validated by the European Medicines Agency, or EMA. The validation of the MAA confirmed that the submission was sufficiently complete to begin the formal review process for Viaskin Peanut to treat peanut allergies in children ages 4 to 11 years. The Company received the first set of questions fromand formally notified the EMA ~~during~~of our decision. The initial filing was supported by positive data from a single, placebo-controlled Phase 3 pivotal trial known as PEPITES

(V712-301).

The decision to withdraw was based on the ~~first quarter~~view of ~~2021, which were consistent with the Company’s expectations and prefiling conversations with the EMA. The Company did not receive questions about the impact of adhesion on efficacy. The EMA’s~~EMA Committee for Medicinal Products for Human Use ~~will provide~~(CHMP) that the data available to date from a ~~recommendation~~single pivotal study were not sufficient to preclude a Major Objection at Day 180 in the ~~European Commission, or EC, on whether to grant~~review cycle. The Company believes data from a ~~marketing authorization when its review of the~~second Viaskin Peanut pivotal study will support a more robust path for licensure of Viaskin Peanut in the EU. The Company intends to resubmit the MAA when that data set is ~~complete.~~

available.

Viaskin Peanut for children ages

1-3

On June 26, 2020, the Company announced that in Part A, patients in both treatment arms showed consistent treatment effects after 12 months of therapy, as assessed by a double-blind placebo-controlled food challenge and biomarker results. Part A subjects were not included in Part B and the efficacy analyses from Part A were not statistically powered to demonstrate superiority of either dose versus placebo. These results validate the ongoing investigation of the 250 mgPg dose in this age group, which is the dose being studied in Part B of the study. Enrollment for Part B of EPITOPE was completed in the first quarter of ~~2021.~~

~~Financing~~

~~On February 4, 2020,~~2021 and

top-line

results are expected by the Company announced the closing of an underwritten global offering of an aggregate of 7,500,000 ordinary shares in (i) a public offering of 4,535,581 ordinary shares in the form of 9,071,162 American Depositary Shares (“ADSs”) in the United States, Canada and certain countries outside Europe at a public offering price of $10.25 per ADS (on the basis of an exchange rate of $1.0999 = €1.00), and (ii) an offering exclusively addressed to qualified investors in Europe (including France) of 2,964,419 ordinary shares at an offering price of €18.63 per ordinary share (together, the “Global Offering”).

On March 2, 2020, the Company announced that the underwriters partially exercised their option to purchase 338,687 additional ordinary shares in the form of 677,374 ADSs at an offering price of $10.25 per ADS, before deducting commissions and estimated offering expenses (the “Option”). The Option closed on March 4, 2020.

~~Consequently, following partial exercise~~end of the ~~Option, the total number~~second quarter of ordinary shares sold in the global offering was 7,838,687 ordinary shares, including 4,874,268 ordinary shares in the form of 9,748,536 ADSs, bringing the total gross proceeds from the global offering to $160.7 million and net proceeds of $150.0 million.

~~Restructuring~~

The Company initiated a global restructuring plan in June 2020 to provide operational latitude to progress in the clinical development and regulatory review of investigational Viaskin Peanut in the United States and European Union. The Company expects full implementation of the organization-wide costs reduction measures to be completed by the second half of 2021.

~~The following table summarizes restructuring activities as of March 31, 2021 included in current contingencies and other current liabilities in the statement of financial position:~~


	~~Restructuring~~ ~~liabilities~~
~~Restructuring liability - January 1, 2021~~		~~9,387~~
~~Amounts paid~~		~~(4,854~~	)
~~Other effect including currency translation effect~~		~~(220~~	)

~~Restructuring liability - March 31, 2021~~		~~4,313~~

~~of which current contingencies~~		~~1,511~~
~~of which other current liabilities~~		~~2,803~~

2022.

COVID-19
Pandemic

On March 11, 2020, the World Health Organization declared

COVID-19

a pandemic. This global health crisis led many countries to impose national containment measures and travel bans. In view of this exceptional situation, the Company decided to take all measures

aimed primarily at guaranteeing the safety of its employees and the continuation of ongoing clinical trials, in compliance with the directives of the authorities in each country. The Company has experienced a decrease in new patients enrolling in the ongoing clinical studies and it has had to adapt the protocols of its clinical trials because patients remain subject to travel restrictions.

The Company has assessed the impact of the uncertainties created by the pandemic. As of March 31, ~~2021,~~2022, those uncertainties were taken into account in the assumptions underlying the estimates and judgments used by the Company. The Company continues to update these estimates and assumptions as the situation evolves. The effects of the

COVID-19

pandemic are presented in the relevant line items of the condensed consolidated statement of financial position and the condensed consolidated statement of operations and comprehensive loss according to the function or nature of the income or expense.

Legal Proceedings

A class action complaint was filed on January 15, 2019 in the United States District Court for the District of New Jersey, entitled Travis

Ito-Stone

v. DBV Technologies, et al., Case No.

2:19-cv-00525.

The complaint alleged that the Company and its former Chief Executive Officer, its current Chief Executive Officer, and its former Deputy Chief Executive Officer violated certain federal securities laws, specifically under Sections 10(b) and 20(a) of the Exchange Act, and Rule

10b-5

promulgated thereunder. The plaintiffs seek unspecified damages on behalf of a purported class of purchasers of the Company’s securities between February 14, 2018 and August 4, 2020 and also held the Company’s securities on December 20, 2018 and/or March 16, 2020 and/or August 4, 2020.

A hearing was held on July 29, 2021 in the U.S. District Court for the District of New Jersey where the Court entered an order granting the Company’s Motion to Dismiss the Second Amended Class Action Complaint without prejudice. As the dismissal was without prejudice, the Plaintiffs replead their case by filing a Third Amended Class Action Complaint on September 30, 2021 in the same Court. The company moved to dismiss third amended complaint on December 10, 2021.

The Company believes that the allegations contained in the amended complaint are without merit and will continue to defend the case vigorously.The Company believes this complaint will not have a material adverse effect on the Company’s consolidated financial position, results of operations or liquidity.

Note 3:3 Cash and Cash Equivalents

The following table presents for each reported period, the breakdown of cash and cash equivalents:

   March 31,    December 31,
   2021    2020
Cash
   58,069    42,341
Cash equivalents
   94,390    154,011




Total cash and cash equivalents as reported in the statements of financial position
   152,459    196,352


	March 31,		December 31,
	2022		2021
Cash		29,145		31,427
Cash equivalents		44,963		45,874

Total cash and cash equivalents as reported in the statements of financial position		74,107		77,301

Bank overdrafts		0		0

Total net cash and cash equivalents as reported in the statements of cash flows		74,107		77,301

Cash equivalents are immediately convertible into cash at no or insignificant cost, on demand. They are measured using level 1 fair value measurements.

Note 4 Other Current Assets

Other current assets consisted of the following:


	March 31,		December 31,
	2022		2021
Research tax credit		8,430		28,092
Other tax claims		3,696		3,561
Prepaid expenses		3,386		4,149
Other receivables		817		1,283

Total		16,329		37,085

Research tax credit

In the fiscal year ended December 31, 2021, the Company recovered its Small and

Medium-sized

Enterprises, or SMEs, status under EU law, and became therefore eligible again for the immediate reimbursement of the Research Tax Credit.

During the three months period ended March 31, 2022, the Company received the reimbursement of the 2019 and 2020 fiscal year research tax credit.

The variance in Research Tax Credit is presented as follow:


	Amount in thousands of US Dollars
Opening research tax credit receivable as of January 1, 2022		28,092
+ Operating revenue		1,569
- Payment received		(20,874	)
- Adjustment and currency translation effect		(358	)

Closing research tax credit receivable as of March 31, 2022		8,430

Of which - Non-current portion		0
Of which - Current portion		8,430

The other tax claims are primarily related to the VAT as well as the reimbursement of VAT that has been requested. Prepaid expenses are comprised primarily of rental and insurance expenses, as well as legal and scientific consulting fees. Prepaid expenses also include upfront payments which are recognized over the term of the ongoing clinical studies.

Note 5 Lease contracts

Future minimum lease payments under the Company’s operating leases’ right of use as of March 31, 2022 and December 31, 2021, are as follows:


	March 31, 2022									December 31, 2021
	Real estate			Other assets			Total			Real estate			Other assets			Total
Current portion		2,159			66			2,225			3,361			77			3,438
Year 2		1,803			18			1,821			3,124			23			3,147
Year 3		605			15			620			2,299			18			2,317
Year 4		—			—			—			771			1			773
Year 5		—			—			—			790			—			790
Thereafter		—			—			—			1,220			—			1,220

Total minimum lease payments		4,567			99			4,666			11,565			119			11,684
Less: Effects of discounting		(358	)		(7	)		(365	)		(1,526	)		(8	)		(1,534	)

Present value of operating lease		4,209			92			4,302			10,039			111			10,150
Less: current portion		(1,973	)		(61	)		(2,034	)		(2,929	)		(74	)		(3,003	)

Long-term operating lease		2,236			31			2,268			7,110			37			7,147

Weighted average remaining lease term (years)		2.21			1.87						4.14			2.01
Weighted average discount rate		3.51	%		3.32	%					4.84	%		3.32	%

The Company recognizes rent expense, calculated as the remaining cost of the lease allocated over the remaining lease term on a straight-line basis.

Rent expense presented in the consolidated statement of operations and comprehensive loss was:


	March 31,
	2022			2021
Operating lease expense / (income)		(1,150	)		847

In January 2022, the company entered into a termination agreement for its U.S. office in Summit, NJ, following the resizing of its facility use. The Company recognized an income

of $1.2

million

as of March 31, 2022 due to the early termination of its Summit, NJ lease, offset by the payment of a one-time lump sum early termination fee of $1.5 million.

Supplemental cash flow information related to operating leases is as follows for the period March 31, 2022 and 2021:


	March 31,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases		583		1,025

Note 4:6 Trade Payables and Other Current Liabilities

~~4.1~~

6.1 Trade Payables

No discounting was performed on the trade payables to the extent that the amounts did not present payment terms longer than one year at the end of each fiscal period presented.

~~4.2~~

6.2 Other Current Liabilities

Other current liabilities consisted of the following:

   March 31,    December 31,
   2021    2020
Employee related liabilities
   9,245    16,661
Deferred income
   3,378    4,687
Tax liabilities
   312    580
Other debts
   460    999




Total
   13,394    22,926


	March 31,		December 31,
	2022		2021
Social security		3,995		6,708
Deferred income		3,794		4,146
Tax liabilities		137		182
Other debts		793		1,325

Total		8,719		12,361

The other current liabilities include short-term debt to employees including ~~employee termination allowance and benefits as part of the restructuring (refer to Note 2, “Significant Events and Transactions of the Period – Restructuring”), bonus accruals, and~~ social welfare and tax agency obligations.

Deferred income primarily includes deferred income from the collaboration agreement with Nestlé Health Science, which amounted to ~~$3.4~~$3.8 million as of March 31, ~~2021.~~

2022.

Note 5:7 Share-Based Payments

The Board of Directors has been authorized by the General Meeting of the Shareholders to grant restricted stock units (“RSU”), stock options ~~plan~~

(“SO”)~~, employee warrants (~~~~Bons~~ and (Bons de Souscription ~~de Parts de Créateur d’Entreprise~~ ~~or “BSPCE”) and (~~~~Bons de Souscription~~ d’Actions or “BSA”).

During the three months ended March 31, ~~2021,~~2022, the Company ~~granted 75,600~~did not grant any stock options and ~~24,900~~ restricted stock.

There have been no changes in the vesting conditions and method of valuation of the SO and RSUs from that disclosed in Note 14 1

to the consolidated financial statements included in the Annual Report.


~~Stock options fair value assumptions during the three months ended March 31, 2021~~
~~Weighted average share price at grant date in €~~	~~9.3~~
~~Weighted average expected volatility~~	~~90.9~~	%
~~Weighted average risk-free interest rate~~	~~(0.36~~	)%
~~Weighted average expected term (in years)~~	6
~~Dividend yield~~	—
~~Weighted average fair value of stock-options in €~~	~~6.9~~

Change in Number of BSA/~~BCE/~~SO/~~RSU~~

   Number of outstanding
   BSA    BCE    SO RSUs
Balance as of December 31, 2020
   218,008    5,500    2,610,510 1,118,745
Granted during the period
   —      —      75,600 24,900
Forfeited during the period
   —      —      (15,400 ) (13,700 )
Exercised/released during the period
   —      (500 )    —   —
Expired during the period
   —      —      —   —






Balance as of March 31, 2021
   218,008    5 000    2,670,710 1,129,945






RSU:


	Number of outstanding
	BSA		SO			RSUs
Balance as of December 31, 2021		256,693		3,631,210			1,240,520
Granted during the period		—		—			—
Forfeited during the period		—		(159,403	)		(56,113	)
Exercised/released during the period		0		—			(775	)
Expired during the period		—		—			0

Balance as of March 31, 2022		256,693		3,471,808			1,183,633

Reconciliation of the share-based payments expenses with the consolidated statements of operations

   Three Months Ended
March 31,
   2021    2020
Research and development
   SO    (376 )    (876 )
   RSU    (251 )    (392 )
Sales and marketing
   SO    (49 )    (598 )
   RSU    (22 )    (2 )
General and administrative
   SO    (644 )    (1,071 )
   RSU    (91 )    (133 )




Total share-based compensation expense
      (1,433 )    (3,073 )


	Three months Ended March 31,
	2022			2021
Research and development	SO	(375	)		(376	)
	RSU	(208	)		(251	)

Sales and marketing	SO	5			(49	)
	RSU	1			(22	)

General and administrative	SO	(698	)		(644	)
	RSU	(87	)		(91	)

Total share-based compensation (expense)		(1,363	)		(1,433	)

Note 6:8 Contingencies

Current contingencies and

non-current

contingencies break down as follows:

   March 31,    December 31,
   2021    2020
Current contingencies
   4,246    5,016
Non-current contingencies
   2,229    2,527




Total contingencies
   6,474    7,542


		March 31,		December 31,
		2022		2021
Current contingencies			3,529		4,095
Non-current contingencies			5,758		6,758
	��
Total contingencies			9,288		10,853

The table below shows movements in contingencies:

   Pension retirement
obligations    Collaboration
agreement -
Loss at
completion    Other contingencies Total
At January 1, 2021
   937    3,956    2,649 7,542
Increases in liabilities
   —      —      —   —
Used liabilities
   —      (434 )    (515 ) (949 )
Reversals of unused liabilities
   —      —      —   —
Net interest related to employee benefits, and unwinding of discount
   —      —      —   —
Actuarial gains and losses on defined-benefit plans
   85    —      —   85
Other effects including currency translation effect
   (44 )    (164 )    4 (204 )






At March 31, 2021
   978    3,358    2,139 6,474






Of which current
   —      2,107    2,139 4,246
Of which non-current
   978    1,251    —   2,229


	Pension retirement obligations			Collaboration agreement - Loss at completion			Other contingencies			Total
At January 1, 2022		1,008			9,800			45			10,853
Increases in liabilities		0			0			0			0
Used liabilities		—			(1,286	)		(45	)		(1,331	)
Reversals of unused liabilities		(9	)		—			—			(9	)
Net interest related to employee benefits, and unwinding of discount		—			—			—			0
Actuarial gains and losses on defined-benefit plans		(24	)		—			—			(24	)
Currency translation effect		(20	)		(181	)		—			(202	)

At March 31, 2022		955			8,332			0			9,288

Of which Current		—			3,529			0			3,529
Of which Non-current		955			4,803			—			5,758

In ~~2020~~2021 and during the first three months of ~~2021,~~2022, the ~~ongoing~~ ~~COVID-19~~ ~~pandemic impacted~~Company updated its measurement of progress of the ~~Company’s current~~Phase 2 clinical ~~trials, including its Phase II clinical~~ trial (“PII”) conducted as part of ~~the development activities pursuant to~~ the collaboration and license agreement with Nestlé ~~Health Science.~~and updated the cumulative income recognized. The Company experienced a decrease in new patients enrolling in this Phase II clinical trial and modified the protocols of the clinical trial. As a result of these delays, the Company expects to incur additional clinical and production costs related to the Phase II clinical trial. Starting the last quarter of the fiscal year 2020,has recorded an accrual in the amount of the ~~difference~~excess between the Company’s current best estimates of costs yet to be incurred and ~~revenues~~incomes yet to be recognized for the completion of the ~~Phase II clinical trial has been recorded.~~

PII.

Other contingencies are primarily composed of the estimated expenses to be incurred as part of the employee-related costs related to restructuring, as well as estimated cost of refurbishing lease premises (Refer to Note 2, “Significant Events and Transactions—Restructuring contingencies).

There have been no significant changes in assumptions for the estimation of the retirement commitments from those disclosed in Note 1514 to the consolidated financial statements included in the Annual Report.

Note 7:9 Operating income

The operating income is broken down in the following manner:

   Three Months Ended March 31,
   2021    2020
Research tax credit
   1,807    2,902
Other operating income
   1,133    1,818




Total
   2,941    4,720


	Three months Ended March 31,
	2022		2021
Research tax credit		1,569		1,807
Other operating income		976		1,133

Total		2,546		2,941

As of March 31, ~~2021,~~2022, the Company recorded its collaboration contract’s income based on its updated measurement of progress of the Phase II clinical trial conducted as part of the collaboration and license agreement with Nestlé Health Science. The accrual recorded in the amount of the difference between the Company’s current best estimates of costs yet to be incurred and income

yet

to be recognized for the completion of the Phase II clinical trial has been updated accordingly.

Note 8:10 Allocation of Personnel Expenses

The Company had an average of 88 employees during the three months ended March 31, 2022, in comparison with an average of 121 employees during the three months ended March 31, ~~2021, in comparison with an average of 311 employees during the three months ended March 31, 2020.~~

2021.

Allocation of Personnel Expenses by Function:

Three Months Ended March
31,

   2021    2020
Research and development expenses
   4,718    10,204
Sales and marketing expenses
   518    4,197
General and administrative expenses
   3,766    4,283




Total personnel expenses
   9,002    18,684


	Three months Ended March 31,
	2022		2021
Research and Development expenses		3,075		4,718
Sales and Marketing expenses		245		518
General and Administrative expenses		2,595		3,766

Total personnel expenses		5,915		9,002

Allocation of Personnel Expenses by Nature:

Three months Ended March
31,

   2021    2020
Wages and salaries
   4,454    12,872
Social security contributions
   1,332    663
Expenses for pension commitments
   402    915
Employer contribution to bonus shares
   1,381    1,162
Share-based payments
   1,433    3,073




Total personnel expenses
   9,002    18,684


	Three months Ended March 31,
	2022		2021
Wages and salaries		3,987		4,454
Social security contributions		251		1,332
Expenses for pension commitments		297		402
Employer contribution to bonus shares		16		1,381
Share-based payments		1,363		1,433

Total		5,915		9,002

The decrease in personnel expenses is mainly due to a decreased headcount ~~as well as reductions in accrued bonuses, retention measures and share-based compensation expenses, partly as~~following the implementation of a ~~result of the 2020 global restructuring plan.~~

new organization.

Note 9:11 Commitments

There have been no0 significant changes in other commitments from those disclosed in Note 1918 to the consolidated financial statements included in the Annual Report.

Note ~~10:~~12 Relationships with Related Parties

There were no0 new significant

related-party

transactions during the period nor any change in the nature of the transactions from those described in Note 2019 to the consolidated financial statements included in the Annual Report.

Note ~~11:~~13 Loss Per Share

Basic loss per share is calculated by dividing the net loss attributable to the shareholders of the Company by the weighted average number of ordinary shares outstanding during the period. As the Company was in a loss position for each of the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, the diluted loss per share is equal to basic loss per share because the effects of potentially dilutive shares were

anti-dilutive

as a result of the Company’s net loss.

The following is a summary of the ordinary share equivalents that were excluded from the calculation of diluted net loss per share for each of the three months ended March 31, ~~2021~~2022 and ~~2020~~2021 indicated in number of potential shares:

   Three Months Ended March 31,
   2021    2020
Non-employee warrants
   225,008    225,008
Employee warrants
   75,000    82,500
Stock-options
   2,670,710    2 835,635
Restricted stock units
   1,129,945    696,895


	Three months Ended March 31,
	2022		2021
Non-employee warrants		256,693		225,008
Employee warrants		0		75,000
Stock-options		3,471,808		2,670,710
Restricted stock units		1,183,633		1,129,945

Note ~~12:~~14 Events after the Close of the Period

The Company evaluated subsequent events that occurred after March 31, ~~2021,~~2022, through the date the condensed consolidated financial statements were issued after their approval by the Board of Directors on April ~~30, 2021~~29, 2022.

On March 28, 2022, the Company entered into a binding office lease agreement in New Jersey for a lease term of 3 years and ~~determined that there are no significant events that require adjustments or disclosure in such condensed consolidated financial statements.~~

2 months. The lease commencement was based upon delivery of possession of the premises by the

andlord and occurred on April 1, 2022. Right of use and related lease debt will be recorded starting April 1, 2022.

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our unaudited condensed consolidated financial statements and related notes included in Part 1, Item 1 of this Report and with our audited financial statements and related notes thereto for the year ended December 31, ~~2020,~~2021, included in our Annual Report on Form 10-K for the year ended December 31, ~~2020,~~2021, filed with the Securities and Exchange Commission on March ~~17, 2021,~~9, 2022, or the Annual Report. This discussion and other parts of this Report contain forward-looking statements that involve risks and uncertainties, such as statements of our plans, objectives, expectations and intentions. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause such differences are discussed in the section of this Report titled “Special Note Regarding Forward-Looking Statements” and under “Item 1A. Risk Factors” in the Annual Report.

Overview

We are a clinical-stage specialty biopharmaceutical company focused on changing the field of immunotherapy by developing a novel technology platform called Viaskin. Our therapeutic approach is based on epicutaneous immunotherapy, or ~~EPIT~~^TM,EPITTM, our proprietary method of delivering biologically active compounds to the immune system through intact skin using Viaskin. We have generated significant data demonstrating that Viaskin’s mechanism of action is novel and differentiated, as it targets specific

antigen-presenting

immune cells in the skin, called Langerhans cells, that capture the antigen and migrate to the lymph node in order to activate the immune system without passage of the antigen into the bloodstream, minimizing systemic exposure in the body. We are advancing this unique technology to treat patients, including infants and children, suffering from food allergies, for whom safety is paramount, since the introduction of the offending allergen into their bloodstream can cause severe or

life-threatening

allergic reactions, such as anaphylactic shock.

On We believe Viaskin may offer convenient, self-administered,

non-invasive

immunotherapy to patients.

Following receipt of a CRL from the FDA in connection with our BLA for Viaskin Peanut, beginning in August 2020, we scaled down our other clinical programs and pre-clinical spend to focus on Viaskin Peanut. We also initiated a global restructuring plan in June 2020 to provide operational latitude to progress the clinical development and regulatory review of Viaskin Peanut in the United States and European Union.

In January ~~13,~~ 2021, ~~the Company~~we received written responses from the FDA to questions provided in the Type A meeting request ~~the Company~~we submitted in October 2020 following the CRL. We believe the FDA feedback provides a well-defined regulatory path forward. In exchanges with the FDA, we proposed potential resolutions to two main concerns identified by the FDA in the CRL: the impact of patch adhesion and the need for patch modifications. The FDA agreed with our position that a modified Viaskin Peanut patch should not be considered as a new product entity provided the occlusion chamber of the current Viaskin Peanut patch and the peanut protein dose of 250 µg (approximately 1/~~1000~~1,000 of aone peanut) remains unchanged and performs in the same way it has performed previously. In order to confirm the consistency of efficacy data between the existing and a modified ~~patches, the~~patch, FDA ~~has~~ requested an assessment comparing the uptake of allergen (peanut protein) between the patches in peanut allergic children ages ~~4 to 11 years.~~

4-11.

We named that assessment EQUAL, which stands for Equivalence in Uptake of Allergen. The FDA also recommended conducting a

6-month,

well-controlled safety and adhesion trial to assess ~~the~~a modified Viaskin Peanut patch in the intended patient population. We later named this clinical trial STAMP, which stands for Safety, Tolerability, and Adhesion of Modified Patches.

Based on the January 2021 FDA feedback, we defined three parallel workstreams:

1.	Identify a modified Viaskin patch (which we call mVP).

2.	Generate the 6-month safety and adhesion clinical data FDA requested via STAMP, which we expected to be the longest component of the mVP clinical plan. We prioritized the STAMP protocol submission so we could begin the clinical trial as soon as possible.

Demonstrate the equivalence in allergen uptake between the current and modified patches in the intended patient population via EQUAL. The complexity of EQUAL hinged on the lack of established clinical and regulatory criteria to characterize allergen uptake via an epicutaneous patch. To support those exchanges, we outlined our proposed approach to demonstrate allergen uptake equivalence between the two patches, and allotted time to generate informative data through two additional Phase I clinical trials in healthy adult volunteers:

PREQUAL, a Phase I trial with adult healthy volunteers to optimize the allergen sample collection methodologies and validate the assays we intend to use in EQUAL. The data collection phase of the trial is complete, and the data analysis phase is ongoing.

‘EQUAL in adults,’ a second Phase I trial with adult healthy volunteers to compare the allergen uptake of cVP and mVP.

In March 2021, we commenced CHAMP (Comparison of adHesion Among Modified Patches), a Phase I trial in healthy adult volunteers to evaluate the adhesion of five modified Viaskin Peanut patches. We completed CHAMP in the second quarter of 2021. All modified Viaskin Peanut patches demonstrated better adhesion performance as compared to the then-current Viaskin Peanut patch, and based on the results of CHAMP, we then selected two modified patches that performed best out of the five modified patches studied for further development. We then selected the circular patch for further development, which is approximately 50% larger in size relative to the current patch and circular in shape.

In May 2021, we submitted our proposed STAMP protocol to the FDA, and on October 14, 2021, we received an Advice/Information Request letter from the FDA. In this letter, the FDA requested a stepwise approach to the modified Viaskin patch development program and provided partial feedback on the STAMP protocol. Specifically, the FDA requested that we conduct allergen uptake comparison trials (i.e., ‘EQUAL in Adults,’ EQUAL), and submit the ~~protocols~~allergen uptake comparison data for FDA review and feedback prior to starting the STAMP study. The FDA’s explanation was that the results from the allergen uptake trials might affect the design of the STAMP study.

After careful review of the FDA’s information requests, in December 2021, we decided not to pursue the sequential approach to the development plans for Viaskin Peanut as requested by the FDA in the October 2021 feedback. We estimated that the FDA’s newly proposed sequential approach would require at least five rounds of exchanges that necessitate FDA alignment prior to initiating STAMP, the

6-month

safety and adhesion study. As such, in December 2021, we announced we plan to initiate a pivotal Phase 3 placebo-controlled efficacy trial for a modified Viaskin Peanut patch (mVP) in children in the intended patient population. The clinical trial will also include updates to the Instructions for Use (IFU). We consider this approach the most straightforward to potentially demonstrate effectiveness, safety, and improved in vivo adhesion of the modified Viaskin Peanut system. The FDA has confirmed (“mVP”) change in strategy is agreeable via oral and written exchanges. The protocol for the new Phase 3 pivotal study of the modified Viaskin Peanut (mVP) patch was completed at the end of February 2022 and ~~the allergen uptake study~~was submitted to the FDA ~~for review and comments before initiating the trials. We will address details about~~in April 2022. The Company has been granted a ~~new human factor, or HF, validation study and additional CMC data in subsequent interactions with~~Type C meeting by the FDA

~~During~~ , which is expected to be held in the second quarter of 2022, to align on the new Phase 3 study protocol.

Business trends and Results of Operations

The following table summarizes our results of operations, derived from our condensed consolidated financial statements, which have been prepared in accordance with U.S. GAAP and presented in thousands of U.S. Dollars for the three months ended March 31, 2022 and 2021:


	Three months ended
	2022			2021
Operating income	$	2,546		$	2,941
Operating expenses
Research and development expenses		(12,223	)		(22,164	)
Sales and marketing expenses		(464	)		(729	)
General and administrative expenses		(6,630	)		(9,683	)

Total Operating expenses		(19,317	)		(32,575	)

Financial income		152			215

Income tax		(87	)		(30	)

Net loss	$	(16,706	)	$	(29,449	)

Basic/diluted Net loss per share attributable to shareholders	$	(0.30	)	$	(0.54	)

Comparison of the three months ended March 31, 2022 to the three months ended March 31, 2021

Operating Income

We generated operating income of $2.5 million during the three months ended March 31, 2022 compared to $2.9 million during the three months ended March 31, 2021, a decrease of 13.4%. This income was mainly generated from the French research tax credit (

crédit d’impôt recherche)

, or CIR, and by revenue recognized under our collaboration agreement with Nestlé Health Science.


	Three months Ended March 31				% change
	2022		2021
Sales		—		—
Other income		2,546		2,941		(13	%)
Research tax credit		1,569		1,807		(13	%)
Other operating (loss) income		976		1,133		(14	%)

Total operating income		2,546		2,941		(13	%)

The decrease in operating income is primarily attributable to the decrease of the CIR, as eligible expenses have declined in correlation with Research and Development costs.

As of March 31, 2022, we recorded our collaboration contract income based on our updated measurement of progress of the Phase II clinical trial conducted as part of the collaboration and license agreement with Nestlé Health Science. The accrual recorded in the amount of the difference between our current best estimates of costs yet to be incurred and income yet to be recognized for the completion of the Phase II clinical has been updated accordingly.

Operating Expense

Research and Development Expenses

The following table summarizes our research and development expenses incurred during the three months ended March 31, 2022 and 2021


	Three months ended March 31,				$ change			% change
Research and Development expenses	2022		2021
External clinical-related expenses		7,350		12,878		(5,528	)		(43	%)
Employee-related costs		2,492		4,091		(1,599	)		(39	%)
Share-based payment expenses		583		627		(45	)		(7	%)
Depreciation, amortization and other costs		1,799		4,568		(2,769	)		(61	%)

Total Research and Development expenses		12,223		22,164		(9,941	)		(45	%)

Research and development expenses decreased by $9.9 million for the three months ended March 31, 2022, compared to the three months ended March 31, 2021, primarily due to a decrease of $5.5 million in external clinical-related expenses as main component of the work on clinical studies such as REALISE and EPITOPE has been finalized during the year 2021. We have also continued to practice financial diligence and implemented further cost containment strategies.

Employee-related costs, excluding share-based payment expenses, decreased by $1.6 million for the three months ended March 31, 2022, compared to the three months ended March 31, 2021, due to the workforce reduction following full implementation of the new organization.

The decrease in depreciation, amortization and other costs was primarily due to the reversal of loss at completion recorded on the Phase II clinical trial conducted as part of the Nestlé agreement.

Sales and Marketing expenses

The following table summarizes our sales and marketing expenses incurred during the three months ended March 31, 2022 and 2021:


	Three months ended March 31,					$ change			% change
Sales & Marketing expenses	2022			2021
Employee-related costs		245			518		(273	)		(53	%)
External professional services		122			84		38			45	%
Share-based payment expenses		(5	)		71		(76	)		(108	%)
Depreciation, amortization and other costs		102			56		46			82	%

Total Sales & Marketing expenses		464			729		(265	)		(36	%)

Sales and marketing expenses decreased by $0.3 million for the three months ended March 31, 2022, compared to the three months ended March 31, 2021, primarily due to a decrease in employee-related costs, partially offset by depreciation and amortization costs.

Employee-related costs, excluding share-based payments expenses, decreased by $0.3 million for the three months ended March 31, 2022, compared to the three months ended March 31, 2021 due to the workforce reduction following full implementation of the new organization.

General and Administrative expenses

The following table summarizes our general and administrative expenses incurred during the three months ended March 31, 2022 and 2021:


	Three months ended March 31,				$ change			% change
General & Administrative expenses	2022		2021
External professional services		1,108		2,287		(1,179	)		(52	%)
Employee-related costs		1,810		3,031		(1,221	)		(40	%)
Share-based payment expenses		786		735		51			7	%
Depreciation, amortization and other costs		2,927		3,630		(702	)		(19	%)

Total General & Administrative expenses		6,630		9,683		(3,052	)		(32	%)

General and administrative expenses decreased by $3.1 million for the three months ended March 31, 2022, compared to the three months ended March 31, 2021, primarily due to a decrease in employee-related costs and external professional services as we continued to practice financial diligence and implemented further cost containment strategies.

Employee-related costs, excluding share-based payments expenses, decreased by $1.2 million for the three months ended March 31, 2022, compared to the three months ended March 31, 2021 due to the workforce reduction following full implementation of the new organization.

Financial income

Our financial income was $0.2 million for the three months ended March 31, 2022 and 2021. This item mainly includes foreign exchange income.

Net loss

Net loss was $16.7 million for the three months ended March 31, 2022, compared to $29.4 million for the three months ended March 31, 2021. Net loss per share (based on the weighted average number of shares outstanding over the period) was $0.30 and $0.54 for three months ended March 31, 2022 and 2021, respectively.

Liquidity and Capital Resources

Financial Condition

On March 31, 2022, we had $74.1 million in cash and cash equivalents compared to $77.3 million of cash and cash equivalents on December 31, 2021. We have incurred operating losses and negative cash flows from operations since our inception. Net cash used for operating activities was $1.5 and $36.2 million for the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022, we recorded a net loss of $16.7 million.

Based on our current operations, as well as our plans and assumptions as revised pursuant to our change of strategy announced in December 2021, we expect that our balance of cash and cash equivalents of $74.1 million as of March 31, 2022 will be sufficient to fund our operations into the first quarter of 2023. As of the date of the filing, our available cash is not projected to be sufficient to support our operating plan for at least the next 12 months. As such, there is substantial doubt regarding our ability to continue as a going concern.

We intend to seek additional capital as we prepare for the launch of Viaskin Peanut, if approved, and continue other research and development efforts. We may seek to finance our future cash needs through a combination of public or private equity or debt financings, collaborations, license and development agreements and other forms of non-dilutive financings. We cannot guarantee that we will be able to obtain the necessary financing to meet our needs or to obtain funds at attractive terms and conditions, including as a result of disruptions to the global financial markets due to the ongoing COVID-19 pandemic. The ongoing COVID-19 pandemic has already caused extreme volatility and disruptions in the capital and credit markets. A severe or prolonged economic downturn could result in a variety of risks to us, including reduced ability to raise additional capital when needed or on acceptable terms, if at all.

If we are not successful in our financing objectives, we could have to scale back our operations, notably by delaying or reducing the scope of our research and development efforts or obtain financing through arrangements with collaborators or others that may require us to relinquish rights to our product candidates that we might otherwise seek to develop or commercialize independently.

Our financial statements have been prepared on a going concern basis assuming that we will be successful in our financing objectives. As such, no adjustments have been made to the financial statements relating to the recoverability and classification of the asset carrying amounts or classification of liabilities that might be necessary should we not be able to continue as a going concern.

Sources and Material Cash Requirements

Based on our current operations, as well as our plans and assumptions as revised pursuant to our change of strategy announced in December 2021, we ~~received~~expect that our balance of cash and cash equivalents of $74.1 million as of March 31, 2022 will be sufficient to fund our operations into the first ~~set~~quarter of ~~questions~~2023.

We fund short-term cash requirements primarily from payments associated with research tax credits (

Crédit d’Impôt Recherche

We have incurred net losses each year since our inception. Substantially all of our net losses resulted from costs incurred in connection with our development programs and from general and administrative expenses associated with our operations. We have not incurred any bank debt.

As of the ~~European Medicines Agency,~~date of the filing, our available cash is not projected to be sufficient to support our operating plan for at least the next 12 months. As such, there is substantial doubt regarding our ability to continue as a going concern. We intend to seek additional capital as we prepare for the launch of Viaskin Peanut, if approved, and continue other research and development efforts. We may seek to finance our future cash needs through a combination of public or ~~EMA,~~private equity or debt financings, collaborations, license and development agreements and other forms of

non-dilutive

financings.

We cannot guarantee that we will be able to obtain the necessary financing to meet our needs or to obtain funds at attractive terms and conditions, including as a result of disruptions to the global financial markets due to the ongoing

COVID-19

pandemic. The ongoing

COVID-19

pandemic has already caused extreme volatility and disruptions in the capital and credit markets. A severe or prolonged economic downturn could result in a variety of risks to us, including reduced ability to raise additional capital when needed or on acceptable terms, if at all.

The following table presents our material cash requirements for future periods:


	Material Cash Requirements Due by the period Ended March 31,
	2023		2024-2025		2026-2027		Thereafter		Total
	(Amounts in thousands)
Conditional advances		333		—		—		—		333
Operating leases		2,034		2,268		—		—		4,302
Purchase obligations - Obligations Under the Terms of CRO Agreements		20,785		8,825		3,457		—		33,067

Total		23,152		11,094		3,457		—		37,703

The commitment amounts in the table above are associated with contracts that are enforceable and legally binding and that specify all significant terms, including interest on long-term debt, fixed or minimum services to be used, fixed, minimum or variable price provisions, and the approximate timing of the actions under the contracts. The table does not include obligations under agreements that we can cancel without a significant penalty.

Future events could cause actual payments to differ from these estimates.

Conditional advances

In 2014, BpiFrance Financement granted an interest-free Innovation loan to DBV Technologies to help financing the pharmaceutical development of Viaskin

™

Milk. This amount was received in a single disbursement on November 27, 2014. In 2020, due to the

COVID-19

pandemic, Bpifrance postponed the repayments for a

6-month

period. Repayment will end during the third quarter of 2022.

Operating leases

Our corporate headquarters are located in Montrouge, France. Our principal offices occupy a 4,470 square meter facility, pursuant to a lease agreement dated March 3, 2015 and represents a $3.9 million cash requirement as of March 31, 2022 which expires March 8, 2024.

We also have facilities in North America that were initially intended to support our U.S. subsidiary as well as future commercialization needs. We lease 3,780 square feet of office space in Tower 49, New York, New York. This lease is for a period of 65 months and expires on February 25, 2023. In light of our global restructuring, the current stage of regulatory interactions regarding Viaskin Peanut, and the ~~Marketing Authorization Application, or MAA,~~ongoing

COVID-19

pandemic, we entered into a sublease agreement of this office space in June 2021. The NYC office represents a $0.3 million cash requirement as of March 31, 2022 until the first quarter of 2023.

On March 28, 2022, the Company entered into a binding office lease agreement in New Jersey for a lease term of 3 years and 2 months. The lease commencement was based upon delivery of possession of the premises by the Landlord and occurred on April 1, 2022. Right of use and related lease debt will be recorded starting April 1, 2022.

Purchase obligations - Obligations Under the Terms of CRO Agreements

In connection with the launch of our clinical trials for Viaskin Peanut ~~as a treatment for peanut allergy in children ages~~ ~~4-11..~~ ~~The questions were consistent~~and Viaskin Milk, we signed agreements with ~~our expectations and prefiling conversations~~several contract research organizations. Expenses associated with the ~~EMA. We did not receive questions about~~ongoing trials amounted globally to $105.5 million. As of March 31, 2022, the ~~impact~~amount we are still obligated to pay in connection with these contracts through 2024 is $33.1 million.

Cash flows

The table below summarizes our sources and uses of ~~adhesion on efficacy. The EMA’s Committee~~cash for ~~Medicinal Products for Human Use will provide a recommendation~~the three months ended March 21, 2022 and 2021:


	Three months ended March 31,						% change
(Amounts in thousands of U.S. Dollars)	2022			2021
Net cash flow used in operating activities		(1,483	)		(36,204	)		(96	%)
Net cash flow provided by (used in) investing activities		11			(185	)		(106	%)
Net cash flow (used in) provided by financing activities		(129	)		440			(129	%)
Effect of exchange rate changes on cash and cash equivalents		(1,594	)		(7,944	)		(80	%)

Net (decrease) increase in cash and cash equivalents		(3,194	)		(43,893	)		(93	%)

Operating

Activities

Our net cash flows used in operating activities were $1.4 million and $36.2 million during the three months ended March 31, 2022 and 2021, respectively. Our net cash flows used in operating activities decreased by $34.7 million, or 95.9%, mainly due to the ~~European Commission, or EC, on whether~~budget discipline measures we took, in particular the decrease in personnel expenses, which was directly related to ~~grant a marketing authorization when its review~~the workforce reduction we implemented as part of our global restructuring plan. Cash flows used in operating activities for the three months ended March 31, 2022 also included $20.9 million of reimbursement of the ~~Viaskin Peanut MAA is complete.~~

Research Tax Credit.

Based on our current assumptions, we expect that our current cash and cash equivalents will support our operations into the first quarter of 2023.

Off-Balance

Sheet Arrangements

We have not entered into any

off-balance

sheet arrangements and do not have variable interests in variable interest entities.

Critical Accounting Policies and Significant Judgments and Estimates

Our management’s discussion and analysis of our financial condition and results of operations is based on our condensed consolidated financial statements, which have been prepared in accordance with generally accepted accounting principles in the United States, or U.S. GAAP. The preparation of these condensed consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, as well as the revenue, costs and expenses recognized during the reporting periods. Our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

There have been no new policies or significant changes to our critical accounting policies as disclosed in the critical accounting policies described in the Annual Report. Our significant accounting policies are more fully described in Note 1 of the Notes to ~~Condensed~~ Consolidated Financial Statements in ~~Part I, Item 1 of this Report.~~

~~The following table summarizes~~ our ~~results of operations, derived from our condensed consolidated financial statements, which have been prepared in accordance with U.S. GAAP and presented in thousands of U.S. Dollars~~Annual Report on Form 10-K for the ~~three months~~year ended ~~March~~December 31, 2021, filed with the Securities and ~~2020:~~

   Three Months Ended
March 31,
   2021    2020
Operating income
   $ 2,941    $ 4,720
Operating expenses

Research and development expenses
   (22,164 )    (27,532 )
Sales and marketing expenses
   (729 )    (7,297 )
General and administrative expenses
   (9,683 )    (11,113 )
Restructuring expenses
   —      —




Total Operating expenses
   (32,575 )    (45,942 )




Financial income
   215    309




Income tax
   (30 )    —




Net loss
   $ (29,449 )    $ (40,913 )




Basic/diluted Net loss per share attributable to shareholders
   $ (0.54 )    $ (0.79 )

~~Comparison of the three months ended~~Exchange Commission (“SEC”) on March ~~31, 2021 to the three months ended March 31, 2020~~

~~Operating Income~~

We generated operating income of $2.9 million during the three months ended March 31, 2021 compared to $4.7 million during the three months ended March 31, 2020, a decrease of 37.7%. This income was mainly generated from the French research tax credit (~~crédit d’impôt recherche)~~~~, or CIR, and by revenue recognized under our collaboration agreement with Nestlé Health Science.~~

   Three Months Ended March 31    % change
   2021    2020    2021 vs 2020
Sales
   —      —
Other income
   2,941    4,720    (37.7 )%
Research tax credit
   1,807    2,902    (37.7 )%
Other operating income
   1,133    1,818    (37.6 )%






Total operating income
   2,941    4,720    (37.7 )%

~~The decrease in operating income is primarily attributable to the decrease of the CIR, as eligible expenses have declined in correlation with Research and Development costs.~~

As of March 31, 2021, we recorded our collaboration contract income based on our updated measurement of progress of the Phase II clinical trial conducted as part of the collaboration and license agreement with Nestlé Health Science. The accrual recorded in the amount of the difference between our current best estimates of costs yet to be incurred and income yet to be recognized for the completion of the Phase II clinical has been updated accordingly.

~~Operating Expense~~

~~The following table summarizes our operating expense excluding restructuring incurred during the three months ended March 31, 2021 and 2020:~~

   Three months Ended
March 31    % change
   2021    2020    2021 vs 2020
Research and development expenses
   22,164    27,532    (19.5 )%
Sales and marketing expenses
   729    7,297    (90.0 )%
General and administrative expenses
   9,683    11,113    (12.9 )%






Total operating expenses
   32,575    45,942    (29.1 )%






9, 2022.

Operating expenses for the three months ended March 31, 2021 were $32.6 million compared to $45.9 million for the three months ended March 31, 2020. The $13.4 million decrease in operating expenses is mainly attributable to a decrease in personnel expenses directly related to the workforce reduction we implemented as part of our 2020 global restructuring plan. Personnel expenses decreased by $9.7 million, or 52%, to $9.0 million during the three months ended March 31, 2021 from $18.7 million for the three months ended March 31, 2020. Average headcount decreased 61% between the two periods, from 311 FTEs for the three months ended March 31, 2020 to and 121 FTEs for the three months ended March 31, 2021. By function, the personnel expenses, including share-based payment expenses, decreased as follows:

Three Months Ended March
31,
   % change
   2021    2020    2021 vs 2020
Research and development expenses
   4,718    10,204    (53.8 )%
Sales and marketing expenses
   518    4,197    (87.7 )%
General and administrative expenses
   3,766    4,283    (12.1 )%






Total personnel expenses
   9,002    18,684    (51.8 )%

The decrease in other operating expenses was primarily due to the budget discipline measures taken by DBV. In particular, sales and marketing consulting fees dropped by 96.8% or $2.6 million, from $2.7 million for the three months ended March 31, 2020 to $0.1 million for the three months ended March 31, 2021 and general and administrative fees decreased by 43.5% or $1.7 million, from $4.0 million for the three months ended March 31, 2020 to $2.3 million for the three months ended March 31, 2021.

~~As a result of the ongoing~~ ~~COVID-19~~ ~~pandemic, we also experienced a decrease in other expenses, in particular tradeshows and travel expenses.~~

~~Restructuring~~

~~We initiated a global restructuring plan in June 2020 to provide operational latitude to progress in the clinical development and regulatory review of investigational Viaskin~~^™ ~~Peanut in the United States and European Union.~~

We expect full implementation of the restructuring plan to result in a reduction of more than 200 jobs, resulting in a remaining global team of 90 individuals dedicated to the pursuit of innovation and scientific development of novel therapies.

~~As of March 31, 2021, we had 104 employees. We expect full implementation of the organization-wide costs reduction measures to be completed by the second half of 2021.~~

The restructuring costs, which were $23.6 million as of December 31, 2020, were mainly comprised of payroll expenses, restructuring-related consulting and legal fees, as well as impairment of facilities and right of use assets following resizing of facilities.

~~During the three months ended March 31, 2021, the restructuring liability evolved as presented below:~~


	~~Restructuring~~ ~~liabilities~~
~~Restructuring liability - January 1, 2021~~		~~9,387~~
~~Amounts paid~~		~~(4,854~~	)
~~Other effect including currency translation effect~~		~~(220~~	)

~~Restructuring liability - March 31, 2021~~		~~4,313~~

~~of which current contingencies~~		~~1,511~~
~~of which other current liabilities~~		~~2,803~~

~~They were no restructuring costs for three months ended March 31, 2021 and 2020.~~

~~Financial income~~

~~Our financial income was $0.2 million for the three months ended March 31, 2021 and 2020. This item mainly includes foreign exchange income.~~

~~Net loss~~

Net loss was $29.4 million for the three months ended March 31, 2021, compared to $40.9 million for the three months ended March 31, 2020. Net loss per share (based on the weighted average number of shares outstanding over the period) was $0.54 and $0.79 for three months ended March 31, 2021 and 2020, respectively.

~~Summary Statement of Cash Flows~~

~~The table below summarizes our sources and uses of cash for the three months ended March 21, 2021 and 2020.~~

   Three Months Ended
March 31,    % change
(Amounts in thousands of U.S. Dollars)    2021    2020    2021 vs 2020
Net cash flow used in operating activities
   (36,204 )    (49,683 )    (27.1 )%
Net cash flow used in investing activities
   (185 )    (930 )    (80.1 )%
Net cash flow provided by financing activities
   440    150,611    (99.7 )%
Effect of exchange rate changes on cash and cash equivalents
   (7,944 )    (5,811 )    (36.7 )%






Net (decrease) increase in cash and cash equivalents
   (43,893 )    94,187    (146.6 )%

~~Operating Activities~~

Our net cash flows used in operating activities were $36.2 million and $49.7 million during the three months ended March 31, 2021 and 2020, respectively. Our net cash flows used in operating activities decreased by $13.5 million, or 27.2%, mainly due to the budget discipline measures we took, in particular the decrease in personnel expenses, which was directly related to the workforce reduction we implemented as part of our global restructuring plan. Cash flows used in operating activities for the three months ended March 31, 2021 included $4.9 million in restructuring amounts paid.

~~Investing Activities~~

Our net cash flows used in investing activities were $0.2 million and $0.9 million during the three months ended March 21, 2021 and 2020, respectively. Those investments were mainly for our industrial machinery and equipment, which are commissioned in order to support the commercialization of Viaskin Peanut, if approved.

~~Financing Activities~~

Our net cash flows provided by financing activities decreased to $0.4 million during the three months ended March 21, 2021 from $150.6 million during the three months ended March 21, 2020. Financing activities consisted mainly of our underwritten global offering in the first quarter of 2020.

~~Based on our current assumptions, we expect that our current cash and cash equivalents will support our operations until the second half of 2022~~

~~Contractual Obligations and Other Commitments~~

~~There have been no material changes in our contractual obligations and commitments from those disclosed in the Annual Report.~~

~~Off-Balance~~ ~~Sheet Arrangements~~

~~We have not entered into any~~ ~~off-balance~~ ~~sheet arrangements and do not have variable interests in variable interest entities.~~

Smaller Reporting Company Status

We are a smaller reporting company as defined in the Securities Exchange Act of 1934, as amended. We may, and intend to, take advantage of certain of the scaled disclosures available to smaller reporting companies and will be able to take advantage of these scaled disclosures for so long as we are a smaller reporting company. We may be a smaller reporting company in any year in which (i) the market value of our voting and

non-voting

ordinary shares held by

non-affiliates

is less than $250.0 million measured on the last business day of our second fiscal quarter or (ii) (a) our annual revenue is less than $100.0 million during the most recently completed fiscal year and (b) the market value of our voting and

non-voting

ordinary shares held by non-affiliates is less than $700.0 million measured on the last business day of our second fiscal quarter.

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

~~Our market risks have~~

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not ~~changed materially from those disclosed in Item 7A of~~required to provide the ~~Annual Report.~~

information required by this item.

Item 4.

Controls and Procedures

Disclosure Controls and Procedures

Based on their evaluation as of March 31, ~~2021,~~2022, our management, including our Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures (as defined in Rule

13a-15(e)

and 15d-15(e) under the Exchange Act) were effective to provide reasonable assurance that (i) the information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and (ii) such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting identified in management’s evaluation pursuant to Rules

13a-15(d)

15d-15(d)

of the Exchange Act during the period covered by this Quarterly Report ~~on Form~~ ~~10-Q~~ that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Limitation on Effectiveness of Controls and Procedures

Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and

procedures or our internal controls will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision making can be faulty and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies and procedures. Because of the inherent limitations in a cost-effective control system, misstatements due to error of fraud may occur and not be detected.

PART II – Other ~~information~~

Information

Item 1.

Legal Proceedings

See “Note 2: Significant Events and Transactions – Legal Proceedings” in the notes to the condensed consolidated financial statements included elsewhere in this Report.

Item 1A.

Risk Factors

Our business is subject to risks and events that, if they occur, could adversely affect our financial condition and results of operations and trading price of our securities. In addition to the other information set forth in this Quarterly Report, you should carefully consider the factors described in Part I, Item 1A. “ Risk Factors” of our Annual Report. There have been no material changes in our risk factors from those disclosed in the Annual Report.

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

During the three months ended March 31, ~~2021,~~2022, we ~~granted 75,600~~did not grant any stock options and ~~24,900~~ restricted stock units to employees in France and in the United States.

During the three months ended March 31, ~~2021,~~2022, we issued ~~7,500~~an aggregate of 775 ordinary shares ~~following the exercise~~to a non-U.S. employee upon settlement of ~~employee warrants by an employee in France, for proceeds of $42,000.~~

RSUs.

None of the foregoing transactions involved any underwriters, underwriting discounts or commissions, or any public offering. We believe these transactions were exempt from registration under the Securities Act in reliance on Section 4(a)(2) of the Securities Act or Regulation S promulgated under Section 5 of the Securities Act, as transactions by an issuer not involving any public offering or as offerings made to

non-U.S.

resident employees pursuant to an employee benefit plan established and administered in accordance with the law of a country other than the United States (namely, the Republic of France) and in accordance with that country’s practices and documentation. All recipients had adequate access, through their relationships with us, to information about us. The sales of these securities were made without any general solicitation or advertising.

Item 3.

Defaults Upon Senior Securities

None.

Item 4.

Mine Safety Disclosures

Not applicable.

Item 5.

Other Information

~~Not applicable.~~

None

Item 6. Exhibits.

Exhibit Index

Exhibit

Description
   Incorporated by Reference
      Schedule
/ Form    File
Number    Exhibit    File
Date
    3.1    By-laws (statuts) of the registrant (English translation)    10-K    001-36697    3.1    3/17/2021
  31.1    Certificate of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, as Amended
  31.2    Certificate of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, as amended
  32.1*    Certificate of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002, as amended
101.INS    XBRL Instance Document
101.SCH    XBRL Taxonomy Extension Schema Document
101.CAL    XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF    XBRL Taxonomy Extension Definition Linkbase Document ��
101.LAB    XBRL Taxonomy Extension Labels Linkbase Document
101.PRE    XBRL Taxonomy Extension Presentation Linkbase Document


Exhibit	Description	Incorporated by Reference
		Schedule / Form	File Number	Exhibit	File Date

3.1	By-laws (statuts) of the registrant (English translation)

31.1	Certificate of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, as Amended

31.2	Certificate of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, as amended

32.1*	Certificate of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002, as amended

101.INS	Inline XBRL Instance Document - the instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document

101.SCH	Inline XBRL Taxonomy Extension Schema Document

101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB	Inline XBRL Taxonomy Extension Labels Linkbase Document

101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document

104	Cover Page Interactive Data File, formatted in Inline XBRL and contained in Exhibit 101.

Furnished herewith and not deemed to be “filed” for purposes of Section 18 of the Exchange Act, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, (whether made before or after the date of the

Form 10-Q),

irrespective of any general ~~incorporation~~incorporate language contained in such filing.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the ~~registrant~~registration has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	DBV Technologies S.A.
	(Registrant)

Date: May ~~5, 2021~~
, 2022	By:	/s/ Daniel Tassé
		Daniel Tassé
		Chief Executive ~~Officer)~~Officer
		(Principal Executive Officer)

Date: May ~~5, 2021~~, 2022	By:	/s/ Sébastien Robitaille
		Sébastien Robitaille
		Chief Financial Officer
		(Principal Financial and Accounting Officer)


			March 31,			December 31,
	Note		2021			2020
Assets
Current assets :
Cash and cash equivalents		3	$	152,459		$	196,352
Trade receivables				—			2,230
Other current assets				7,349			8,792

Total current assets				159,809			207,375
Property, plant, and equipment, net				21,526			24,792
Right-of-use assets related to operating leases				9,168			10,104
Intangible assets				32			41
Other non-current assets				30,870			29,935

Total non-current assets				61,596			64,871

Total Assets			$	221,405		$	272,246

Liabilities and shareholders’ equity
Current liabilities:
Trade payables		4	$	17,176		$	20,338
Short-term operating leases				3,314			3,708
Short-term financial debt				701			724
Current contingencies		6		4,246			5,016
Other current liabilities		4		13,394			22,926

Total current liabilities				38,831			52,713

Long-term operating leases				9,533			10,496
Long-term financial debt				350			543
Non-current contingencies		6		2,229			2,527
Other non-current liabilities				1,286			475

Total non-current liabilities				13,398			14,042

Total Liabilities			$	52,229		$	66,754

Shareholders’ equity :
Ordinary shares, €0.10 par value; 54,936,687 and 54,929,187 shares authorized, and issued as at March 31, 2021 and December 31, 2020, respectively, and 4,100,663 and 4,029,763 shares outstanding as at March 31, 2021 and December 31, 2020, respectively			$	6,519		$	6,518
Additional paid-in capital				1,153,516			1,152,042
Treasury stock, 60,588 and 112,302 ordinary shares as of March 31, 2021 and December 31, 2020, respectively, at cost				(681	)		(1,169	)
Accumulated deficit				(987,992	)		(958,543	)
Accumulated other comprehensive income				399			484
Accumulated currency translation effect				(2,586	)		6,158

Total Shareholders’ equity			$	169,176		$	205,491

Total Liabilities and Shareholder’s equity			$	221,405		$	272,246


		Three Months Ended March 31,
	Note	2021			2020
Operating income	7	$	2,941		$	4,720

Operating expenses
Research and development expenses			(22,164	)		(27,532	)
Sales and marketing expenses			(729	)		(7,297	)
General and administrative expenses			(9,683	)		(11,113	)

Total Operating expenses			(32,575	)		(45,942	)

Loss from operations			(29,634	)		(41,222	)

Financial income			215			309

Loss before taxes			(29,419	)		(40,913	)

Income tax			(30	)		—

Net loss		$	(29,449	)	$	(40,913	)

Other comprehensive loss
Foreign currency translation differences, net of taxes			(8,744	)		(6,064	)
Actuarial (losses) gains on employee benefits, net of taxes			(85	)		189

Comprehensive loss		$	(38,279	)	$	(46,788	)

Basic/diluted Net loss per share attributable to shareholders	11	$	(0.54	)	$	(0.79	)

Weighted average shares outstanding used in computing per share amounts:			54,880,776			51,802,524


			Three months Ended March 31,
	Note		2022			2021
Operating income		9	$	2,546		$	2,941

Operating expenses
Research and development expenses				(12,223	)		(22,164	)
Sales and marketing expenses				(464	)		(729	)
General and administrative expenses				(6,630	)		(9,683	)

Total Operating expenses				(19,317	)		(32,575	)

Loss from operations				(16,771	)		(29,634	)

Financial income				152			215

Loss before taxes				(16,619	)		(29,419	)

Income tax				(87	)		(30	)

Net loss			$	(16,706)		$	(29,449)

Foreign currency translation differences, net of taxes				(1,933	)		(8,744	)
Actuarial gains (loss) on employee benefits, net of taxes				24			(85	)

Total comprehensive loss			$	(18,615	)	$	(38,279	)

Basic/diluted net loss per share attributable to shareholders		13	$	(0.30	)	$	(0.54	)

Weighted average number of shares outstanding used in computing per share amounts:				54,932,192			54,880,776


			Three Months Ended March 31,
	Notes		2021			2020
Net loss for the period			$	(29,449	)	$	(40,913	)
*Adjustments to reconcile net loss to net cash used in operating activities:*
Depreciation, amortization and accrued contingencies				1,483			1,548
Retirement pension obligations				—			109
Expenses related to share-based payments				1,433			3,073
Other elements				(456	)		419
Changes in operating assets and liabilities:
Decrease (increase) in inventories and work in progress				—			(2,402	)
Decrease (increase) in trade receivables				2,101			—
Decrease (increase) in other current assets				(417	)		122
(Decrease) increase in trade payables				(2,567	)		(3,212	)
(Decrease) increase in other current and non-current liabilities				(7,980	)		(8,382	)
Change in operating lease liabilities and right of use assets				(353	)		(45	)
Net cash flow used in operating activities				(36,204	)		(49,683	)

Cash flows used in investing activities:
Acquisitions of property, plant, and equipment, net from proceeds				(184	)		(816	)
Acquisitions of intangible assets				—			(114	)
Acquisitions of non-current financial assets				(1	)		—

Net cash flows used in investing activities				(185	)		(930	)

Cash flows provided by financing activities:
(Decrease) increase in conditional advances				(164	)		7
Treasury shares				578			(412	)
Capital increases, net of transaction costs				42			151,023
Other cash flows related to financing activities				(17	)		(7	)

Net cash flows provided by financing activities				440			150,611

Effect of exchange rate changes on cash and cash equivalents				(7,944	)		(5,811	)

Net (decrease) / increase in cash and cash equivalents				(43,893	)		94,187

Net Cash and cash equivalents at the beginning of the period				196,352			193,255

Net cash and cash equivalents at the end of the period		3	$	152,459		$	287,442


	Ordinary shares
	Number of Shares		Amount		Additional paid-in capital		Treasury stock			Accumulated deficit			Accumulated other comprehensive income (loss)			Accumulated currency translation effect			Total Shareholders’ Equity
Balance at January 1, 2020		47,028,510	$	5,645	$	1,003,595	$	(230	)	$	(798,988	)	$	108		$	(16,945	)	$	193,186
Net (loss)		—		—		—		—			(40,913	)		—			—			(40,913	)
Other comprehensive income (loss)		—		—		—		—			—			189			(6,064	)		(5,875	)
Issuance of ordinary shares		7,898,677		873		150,150		—			—			—			—			151,023
Treasury shares		—		—		—		(832	)		—			—			—			(832	)
Share-based payments		—		—		3,073					—			—			—			3,073

Balance at March 31, 2020		54,927,187	$	6,518	$	1,156,818	$	(1,062	)	$	(839,901	)	$	297		$	(23,009	)	$	299,662

	Ordinary shares
	Number of Shares		Amount		Additional paid-in capital		Treasury stock			Accumulated deficit			Accumulated other comprehensive gain (loss)			Accumulated currency translation effect			Total Shareholders’ Equity
Balance at January 1, 2021		54,929,187	$	6,518	$	1,152,042	$	(1,169	)	$	(958,543	)	$	484		$	6,158		$	205,491
Net (loss)		—		—		—		—			(29,449	)		—			—			(29,449	)
Other comprehensive (loss)		—		—		—		—			—			(85	)		(8,744	)		(8,829	)
Issuance of ordinary shares		7 500		1		42		—			—			—			—			42
Treasury shares		—		—		—		488			—			—			—			488
Share-based payments		—		—		1,433		—			—			—			—			1,433

Balance at March 31, 2021		54,936,687	$	6,519	$	1,153,516	$	(681	)	$	(987,992	)	$	399		$	(2,586	)	$	169,176


	Ordinary shares
	Number of Shares		Amount		Additional paid-in capital		Treasury stock			Accumulated deficit			Accumulated other comprehensive income (loss)			Accumulated currency translation effect			Total Shareholders’ Equity
Balance at January 1, 2021		54,929,187	$	6,518	$	1,152,042	$	(1,169	)	$	(958,543	)	$	484		$	6,158		$	205,491
Net (loss)		—		—		—		—			(29,449	)		—			—			(29,449	)
Other comprehensive loss		—		—		—		—			—			(85	)		(8,744	)		(8,829	)
Issuance of ordinary shares		7,500		1		42		—			—			—			—			42
Treasury shares		—		—		—		488			—			—			—			488
Share-based payments		—		—		1,433		—			—			—			—			1,433

Balance at March 31, 2021		54,936,687	$	6,519	$	1,153,516	$	(681	)	$	(987,992	)	$	399		$	(2,586	)	$	169,176


	Number of outstanding
	BSA		BCE			SO			RSUs
Balance as of December 31, 2020		218,008		5,500			2,610,510			1,118,745
Granted during the period		—		—			75,600			24,900
Forfeited during the period		—		—			(15,400	)		(13,700	)
Exercised/released during the period		—		(500	)		—			—
Expired during the period		—		—			—			—

Balance as of March 31, 2021		218,008		5 000			2,670,710			1,129,945


	Three Months Ended March 31,
	2021				2020
Research and development		SO	(376	)		(876	)
		RSU	(251	)		(392	)
Sales and marketing		SO	(49	)		(598	)
		RSU	(22	)		(2	)
General and administrative		SO	(644	)		(1,071	)
		RSU	(91	)		(133	)

Total share-based compensation expense			(1,433	)		(3,073	)


	Pension retirement obligations			Collaboration agreement - Loss at completion			Other contingencies			Total
At January 1, 2021		937			3,956			2,649			7,542
Increases in liabilities		—			—			—			—
Used liabilities		—			(434	)		(515	)		(949	)
Reversals of unused liabilities		—			—			—			—

Net interest related to employee benefits, and unwinding of discount		—			—			—			—
Actuarial gains and losses on defined-benefit plans		85			—			—			85
Other effects including currency translation effect		(44	)		(164	)		4			(204	)

At March 31, 2021		978			3,358			2,139			6,474

Of which current		—			2,107			2,139			4,246
Of which non-current		978			1,251			—			2,229


	Three Months Ended March 31,
	2021		2020
Research and development expenses		4,718		10,204
Sales and marketing expenses		518		4,197
General and administrative expenses		3,766		4,283

Total personnel expenses		9,002		18,684


	Three Months Ended March 31				% change
	2021		2020		2021 vs 2020
Sales		—		—
Other income		2,941		4,720		(37.7	)%
Research tax credit		1,807		2,902		(37.7	)%
Other operating income		1,133		1,818		(37.6	)%

Total operating income		2,941		4,720		(37.7	)%


	Three months Ended March 31				% change
	2021		2020		2021 vs 2020
Research and development expenses		22,164		27,532		(19.5	)%
Sales and marketing expenses		729		7,297		(90.0	)%
General and administrative expenses		9,683		11,113		(12.9	)%

Total operating expenses		32,575		45,942		(29.1	)%


	Three Months Ended March 31,						% change
(Amounts in thousands of U.S. Dollars)	2021			2020			2021 vs 2020
Net cash flow used in operating activities		(36,204	)		(49,683	)		(27.1	)%
Net cash flow used in investing activities		(185	)		(930	)		(80.1	)%
Net cash flow provided by financing activities		440			150,611			(99.7	)%
Effect of exchange rate changes on cash and cash equivalents		(7,944	)		(5,811	)		(36.7	)%

Net (decrease) increase in cash and cash equivalents		(43,893	)		94,187			(146.6	)%