Notes related to the unaudited interim condensed consolidated statement of financial position | Financial liabilities (amounts in thousands of euros) Convertible notes Conditional advances Bank loans Other Total As of December 31, 2020 2,169 4,421 10,019 35 16,644 Collection 5,712 — — — 5,712 Fair value of embedded derivatives (404) — — — (404) Amortized cost 919 66 92 — 1,077 Conversion (8,350) — — — (8,350) Repayment — — — — — FX rate impact — — — 2 2 As of June 30, 2021 46 4,487 10,111 37 14,681 Financial liabilities by maturity June 30, 2021 (in thousands of euros) Less than one year One to three years Three to five years More than five years Total Convertible notes 46 — — — 46 Conditional advances — — — 4,487 4,487 Bank loans 182 3,526 5,099 1,304 10,111 Other — 37 — — 37 Total financial liabilities 228 3,563 5,099 5,791 14,681 (in thousands of euros) Lease liabilities As of December 31, 2020 10,804 Increase without cash impact 379 Repayment (830) Decrease without cash impact — FX rate impact 194 Capitalized interests — As of June 30, 2021 10,547 Lease liabilities by maturity Less than one year One to three years Three to five years More than five years Total As of June 30, 2021 1,732 2,965 2,276 3,574 10,547 (amounts in thousands of euros) 12/31/2020 06/30/2021 Vendors 4,706 3,352 Vendors - accruals 16,204 14,287 Total trade and other payables 20,910 17,639 Social liabilities, taxation and social security 4,149 3,604 Fixed assets payables 86 33 Deferred revenue 148 120 Other payables 53 69 Total other current liabilities 4,436 3,826 Hospital costs accruals amounted to €10,770 thousand as of December 31, 2020 and €10,557 thousand as of June 30, 2021. As of December 31, 2020 Carrying amount on the statement of financial position (1) Fair value through profit and loss Fair value through other comprehensive income Financial assets at amortized cost Financial liabilities at amortized cost Fair value Other non-current assets 1,091 1,091 1,091 Other current financial assets 59 59 59 Trade and other receivables 4 4 4 Other current assets 4,330 4,330 4,330 Cash and cash equivalents (2) 44,446 44,446 44,446 Total financial assets 49,930 44,446 — 5,484 — 49,930 Financial liabilities - non current portion (3) 14,379 14,379 14,379 Derivative liabilities - non current portion (5) 288 288 288 Lease liabilities - non current portion (4) 9,197 9,197 9,197 Financial liabilities - current portion (3) 2,265 2,265 2,265 Derivative liabilities - current portion (5) 129 129 129 Lease liabilities - current portion (4) 1,607 1,607 1,607 Trade and other payables 20,910 20,910 20,910 Other current liabilities 4,288 4,288 4,288 Total financial liabilities 53,063 417 — — 52,646 53,063 As of June 30, 2021 Carrying amount on the statement of financial position (1) Fair value through profit and loss Fair value through other comprehensive income Financial assets at amortized cost Financial liabilities at amortized cost Fair value Other non-current assets 1,091 1,091 1,091 Other current financial assets 516 516 516 Trade and other receivables 14 14 14 Other current assets 6,669 6,669 6,669 Cash and cash equivalents (2) 46,323 46,323 46,323 Total financial assets 54,613 46,323 — 8,290 — 54,613 Financial liabilities - non current portion (3) 14,452 14,452 14,452 Derivative liabilities - non current portion (5) 69 69 69 Lease liabilities - non current portion (4) 8,815 8,815 8,815 Financial liabilities - current portion (3) 229 229 229 Derivative liabilities - current portion (5) 3 3 3 Lease liabilities - current portion (4) 1,732 1,732 1,732 Trade and other payables 17,639 17,639 17,639 Other current liabilities 3,706 3,706 3,706 Total financial liabilities 46,645 72 — — 46,573 46,645 (1) The carrying amount of these assets and liabilities is a reasonable approximation of their fair value. (2) Cash and cash equivalents are comprised of cash in bank and term deposit accounts, which are measured using level 1 measurements. (3) The fair value of financial liabilities is determined using level 2 measurements. (4) The fair value of lease liabilities is determined using level 2 measurements. (5) The fair value of derivative liabilities is determined using level 3 measurements. | NOTES RELATED TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITIONProperty, plant and equipment (amounts in thousands of euros) General equipment, fixtures and fittings Plant, equipment and tooling Office equipment and computers Assets under construction Advance payment TOTAL GROSS VALUE As of December 31, 2020 20,701 5,787 1,204 77 — 27,769 Increase 25 — 16 42 11 94 Decrease — — (9) — — (9) FX rate impact 580 91 13 — — 684 Reclassification — — 64 (53) 11 22 As of June 30, 2021 21,306 5,878 1,288 66 22 28,560 ACCUMULATED DEPRECIATION As of December 31, 2020 (4,127) (2,092) (688) — — (6,907) Increase (1,066) (535) (110) — — (1,711) Decrease — — 9 — — 9 FX rate impact (102) (25) (6) — — (133) Reclassification — — — — — — As of June 30, 2021 (5,295) (2,652) (795) — — (8,742) NET VALUE As of December 31, 2020 16,574 3,695 516 77 — 20,862 As of June 30, 2021 16,011 3,226 493 66 22 19,818 (amounts in thousands of euros) Buildings Plant, equipment and tooling Transport equipment Office equipment and computers TOTAL GROSS VALUE As of December 31, 2020 10,846 954 73 118 11,991 Increase — 376 3 — 379 Decrease (1,715) — — — (1,715) FX rate impact 145 5 — — 150 Reclassification — — — — — As of June 30, 2021 9,276 1,335 76 118 10,805 ACCUMULATED DEPRECIATION As of December 31, 2020 (2,649) (954) (42) (118) (3,763) Increase (726) (37) (12) — (775) Decrease 1,050 — — — 1,050 FX rate impact (38) (1) — — (39) Reclassification — — — — — As of June 30, 2021 (2,363) (992) (54) (118) (3,527) NET VALUE As of December 31, 2020 8,197 — 31 — 8,228 As of June 30, 2021 6,913 343 22 — 7,278 The decrease is linked to the sublease of our premises in Cambridge, United States. (amounts in thousands of euros) 12/31/2020 06/30/2021 Trade and other receivables 4 14 Total trade and other receivables 4 14 Research Tax Credit 3,432 5,564 Other receivables (including tax and social receivables) 898 660 Net investment in a sublease — 446 Prepaid expenses 793 1,515 Total other current assets 5,123 8,185 Research Tax Credit (Crédit d’Impôt Recherche or “CIR”) As of June 30, 2021, the CIR receivable included the Research Tax Credit for the 2020 financial year and the CIR estimate for the first half of 2021. Prepaid expenses Prepaid expenses mainly related to advance payments for directors and officers' insurance ( €1,026 thousand ). (amounts in thousands of euros) 12/31/2020 06/30/2021 Current account 34,348 41,221 Term deposits 10,098 5,102 Total cash and cash equivalents as reported in statement of financial position 44,446 46,323 Bank overdrafts — — Total cash and cash equivalents as reported in statement of cash flow 44,446 46,323 As of December 31, 2020, term deposits included a term deposit of €10.0 million with a maturity of one month and deposits of €0.1 million convertible into cash immediately. As of June 30, 2021, term deposits included a term deposit of €5.0 million with a maturity of one month and deposits of €0.1 million convertible into cash immediately. As of June 30, 2021, the capital of the Company consisted of 26,438,955 shares, fully paid up, with a nominal value of 0.10 euro. Number of shares As of December 31, 2020 20,057,562 Shares issued as part of the Registered Offering 4,137,932 Shares sold under the at-the-market (“ATM”) program 744,186 Conversion of convertible notes ("OCA") 1,493,320 Free shares acquired 5,955 As of June 30, 2021 26,438,955 In February 2021, t he Company sold 744,186 shares under the at-the-market (“ATM”) program, for gross proceeds of €6.6 million (net proceeds of approximately €6.4 million). In April 2021, the Company issued 4,137,932 shares as part of the Registered Offering, for gross proceeds of €24.9 million (net proceeds of approximately €22.5 million). During the first half of 2021, t he transaction costs amounted to €2.7 million (of which €2.4 million related to the Registered Offering and €0.2 million to shares sold under the at-the-market (“ATM”) program) and relates to bank fees, legal counsels, advisors and auditors’ fees. The Company issued 2 tranches of €3.0 million each on March 2, 2021 and May 19, 2021, respectively. During the first half of 2021, 167 OCA were converted into 1,493,320 shares. As of June 30, 2021, 1 OCA and 235,690 BSA are outstanding. The average effective interest rate of the tranches issued during the first half of 2021 was 13.0%. Fair value of the conversion option is estimated with a Monte-Carlo valuation model using the following main assumptions: 12/31/2020 At the issuance date 06/30/2021 Tranche 6 Tranche 7 Number of convertible notes 48 60 60 1 Estimated conversion price € 6.75 € 6.94 € 4.87 € 3.73 Expected term 1 month 1 month 1 month 1 day Fair value (in thousands of euros) 129 160 160 3 Fair value of the warrants is estimated with a Black & Scholes valuation model using the following main assumptions: 12/31/2020 At the issuance date 06/30/2021 Tranche 6 Tranche 7 Number of warrants 168,350 33,670 33,670 235,690 Price of the underlying share € 7.11 € 7.30 € 5.13 € 3.93 Expected dividends — % — % — % — % Volatility 58.11 % 58.40 % 62.24 % 61.13 % Expected term 2 years 1 year, 10 months 1 year, 7 months 1 year, 6 months Fair value (in thousands of euros) 288 59 25 69 Sensitivity analysis as of June 30, 2021 A change in the main assumptions used for the valuation of the conversion option would have no significant impact in the fair value . A change in the following assumptions used for the valuation of the warrants could change the fair value as follows. (in thousands of euros) Price of the underlying share Volatility -10% 3.93 +10% - 10 percentage points 25 38 54 61% 49 69 93 +10 percentage points 80 107 137 |