| NOTES RELATED TO THE CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | NOTES RELATED TO THE CONSOLIDATED STATEMENTS OF FINANCIAL POSITIONFixed assets 4.1.1 Intangible assets Accounting policies Internally generated intangible assets – Research and development costs In accordance with IAS 38 Intangible Assets ( “IAS 38” ), research expenditures are expensed in the period during which they are incurred. An internally generated intangible asset relating to a development project is recorded as an asset if, and only if, the following criteria are met: (a) it is technically feasible to complete the development project; (b) intention on the part of the Company to complete the project and to utilize it; (c) capacity to utilize the intangible asset; (d) proof of the probability of future economic benefits associated with the asset; (e) availability of the technical, financial, and other resources for completing the project; and (f) reliable evaluation of the development expenses. The initial measurement of the asset is the sum of expenses incurred starting on the date on which the development project meets the above criteria. Because of the risks and uncertainties related to regulatory authorizations and to the research and development process, the Company believes that the six criteria stipulated by IAS 38 have not been fulfilled to date and the application of this principle has resulted in all development costs being expensed as incurred in all periods presented. Other intangible assets Other intangible assets are recorded at their acquisition cost plus costs directly attributable to the preparation of the asset for its intended use. Other intangible assets mainly comprised costs of modeling studies of a new production process and costs of acquisition of software licenses. Intangible assets with a finite life are amortized on the basis of the straight-line method over their estimated useful life. Intangible assets Item Amortization period Software 1 to 5 years (amounts in thousands of euros) Other intangible assets Intangible assets in progress TOTAL GROSS VALUE As of As of December 31, 2019 1,876 — 1,876 Increase — 2 2 Decrease — — — FX rate impact (1) — (1) Reclassification — — — As of As of December 31, 2020 1,875 2 1,877 Increase — — — Decrease (201) — (201) FX rate impact 1 — 1 Reclassification (2) — (2) As of As of December 31, 2021 1,673 2 1,675 Increase — — — Decrease (7) — (7) FX rate impact — — — Reclassification 2 (2) — As of As of December 31, 2022 1,668 — 1,668 ACCUMULATED AMORTIZATION AND IMPAIRMENT As of As of December 31, 2019 (1,273) — (1,273) Increase (16) — (16) Decrease — — — FX rate impact 1 — 1 As of As of December 31, 2020 (1,288) — (1,288) Increase (571) — (571) Decrease 199 — 199 FX rate impact — — — As of As of December 31, 2021 (1,660) — (1,660) Increase (7) — (7) Decrease 4 — 4 FX rate impact — — — As of As of December 31, 2022 (1,663) — (1,663) NET VALUE As of December 31, 2019 603 — 603 As of December 31, 2020 587 2 589 As of December 31, 2021 13 2 15 As of December 31, 2022 5 — 5 After performing an impairment test at the end of 2019, the Company determined that €1,036 thousand of the intangible asset will no longer be used in the intended production process. The remaining amount has been impaired totally in 2021 for €560 thousand. Accounting policies In accordance with IFRS 16 Leases ( “IFRS 16” ) , applicable since January 1, 2019, the right of use is recognized on the lessee’s balance sheet when the asset linked to the lease agreement become available. The right of use asset is measured at cost and comprises: • the amount of the initial measurement of the lease liability (see note 4.10), • lease incentives, payments at or prior to commencement date, • incremental costs which would not have been incurred if the contract had not been concluded. The right of use is subsequently measured at cost less depreciation and any accumulated impairment loss. The amount can be adjusted based on certain revaluations of the lease liability. The right of use are tested for impairment whenever there is an indicator that such asset may be impaired. (amounts in thousands of euros) Buildings Plant, equipment and tooling Transport equipment Office equipment and computers TOTAL GROSS VALUE As of December 31, 2019 11,237 954 80 118 12,389 Increase 92 — 7 — 99 Decrease — — (14) — (14) FX rate impact (483) — — — (483) Reclassification — — — — As of December 31, 2020 10,846 954 73 118 11,991 First application of IFRS 16 — Increase 383 33 416 Decrease (1,763) (1,763) FX rate impact 13 375 Reclassification 0 — 0 0 As of December 31, 2021 9,445 1,350 106 118 11,019 Increase 75 — 13 88 Decrease (4,045) (396) (4,441) FX rate impact 198 — 198 Reclassification — As of December 31, 2022 5,673 954 119 118 6,864 ACCUMULATED DEPRECIATION AND IMPAIRMENT As of December 31, 2019 (1,285) (954) (23) (118) (2,380) Increase (1,489) — (29) — (1,518) Decrease 0 0 10 — 10 FX rate impact 125 — — — 125 Reclassification — — — — — As of December 31, 2020 (2,649) (954) (42) (118) (3,763) Increase (1,252) (76) (23) — (1,351) Decrease 1,070 0 — — 1,070 FX rate impact (103) (3) — — (106) Reclassification — — — — — As of December 31, 2021 (2,934) (1,033) (65) (118) (4,150) Increase (706) (27) (733) Impairment (728) — — — (728) Decrease 1,339 79 — — 1,418 FX rate impact (89) — — — (89) Reclassification — — — — As of December 31, 2022 (3,116) (954) (92) (118) (4,280) NET VALUE As of December 31, 2020 8,197 — 31 — 8,228 As of December 31, 2021 6,511 317 41 — 6,869 As of December 31, 2022 2,557 — 27 — 2,584 The remaining right of use net book value of €2,584 thousand is mainly related to Bioserra building lease in Lyon (France) for €2,557 thousand. – The decrease in 2022 of the building and equipments rights of use, with a gross amount of $4,441 thousand, accumulated depreciation of €1,418 thousand and a net book value of €3,022 thousand ($3,307 thousand) is related to the Princeton Plant sale to Catalent; – The increase of building right of use impairment loss of €728 thousand in 2022 (see note 3.4) is mainly the result of the impairment test conducted on the Adenine (Lyon, France) building right of use after the site has been idled, following 2022 adverse events (mostly clinical study result and restructuring plan). The Adenine right of use was written down to zero given the specialized nature of the site, its current rent compared to market rents and the low prospects of sub-letting the site before its lease term (end of June 2024). – The Company also performed an impairment test on the remaining material right-of-use asset which relates to the Bioserra (Lyon, France) building as of December 31, 2022. The Company estimated the recoverable amount of this asset based on its fair value less costs of disposal using a discounted cash flow model with assumptions such as the term of the lease (June 2029), market rents and average rate of return for similar buildings. The fair value measurement was categorized as a Level 3 fair value based on the inputs in the valuation technique used. An immaterial impairment charge was recognized on this asset after conducting the test. Accounting policies Other financial assets are composed of receivables initially recognized at their fair value and then at the amortized cost calculated with the effective interest rate (“ EIR ”) method. Financial assets with a maturity of more than one year are classified in “other non-current financial assets” in accordance with IAS 1. (amounts in thousands of euros) 12/31/2020 12/31/2021 12/31/2022 Deposits related to leased premises 454 476 193 Advance payments to suppliers 620 342 0 Other 17 58 2 Total other non-current assets 1,091 876 195 Advance payments comprised payments made to service providers, especially Contract Research Organizations (“CROs”), involved with the conduct of the clinical trials in the solid tumors indication (TRYbeCA-1 and TRYbeCA-2 study). Accounting policies Other current assets are initially recognized at their fair value and then at the amortized cost calculated with the effective interest rate (“ EIR ”) method. Trade receivables Trade receivables are initially recognized in accordance with IFRS 15 and then at the amortized cost calculated with the effective interest rate (“ EIR ”) method. The Company recognizes loss allowances for expected credit losses (“ ECL ”), which, for trade receivables and contract assets, are measured at an amount equal to lifetime ECLs that result from all possible default events over their expected life. Loss allowances are deducted from the gross amounts of the assets. (amounts in thousands of euros) 12/31/2020 12/31/2021 12/31/2022 Trade and other receivables 4 12 76 Total current trade receivables 4 12 76 Research Tax Credit 3,432 3,549 1,484 Other receivables (including tax and social receivables) 898 669 973 Net investment in a sublease 0 479 43 Deposits related to leased premises 8 7 121 Advance payments and deposits to suppliers 51 377 342 Prepaid expenses 793 1,256 805 Total other current assets 5,182 6,337 3,769 Research Tax Credit The Company benefits from the provisions in Articles 244 quater B and 49 septies F of the French Tax Code related to the Research Tax Credit. As of December 31, 2020, December 31, 2021 and December 31, 2022, the CIR receivables included Research Tax Credit of the year. Tax and social receivables and other receivables Tax and social receivables and other receivables mainly related to VAT receivables (€635 thousand as of December 31, 2020, €610 thousand as of December 31, 2021 and €899 thousand as of December 31, 2022). Prepaid expenses As of December 31, 2022 and December 31, 2021, prepaid expenses are mainly related to insurance expense.. Accounting policies The item “cash and cash equivalents” includes bank accounts and highly liquid securities. They are readily convertible into a known amount of cash and are subject to a negligible risk of change in value. The cash equivalents classification is made if the following criteria are fulfilled: • held for the purpose of meeting short term cash commitments rather than for investment or other purposes. • exit options exist: ◦ exercisable at any time at least every three months; ◦ initially included in the contract and this exit option is always provided in the initial contract; and ◦ exercisable without exit penalty and without significant risk of change in the amount received as cash reimbursement. • there is no value risk related to the level of minimum compensation acquired (i.e. that obtained in the event of early exit) because over the entire duration and at each moment this remuneration will be identical to that obtained from an investment of no more than three months that meets the definition of a cash equivalent. This can be the case when the rate is variable or revisable. They are recorded as assets in cash equivalents, measured at their fair value, and the changes in value are recognized in financial income (loss). (amounts in thousands of euros) 12/31/2020 12/31/2021 12/31/2022 Current account 34,348 24,593 26,676 Term deposits 10,098 9,106 12,113 Total cash and cash equivalents as reported in statement of financial position 44,446 33,699 38,789 Bank overdrafts — — — Total cash and cash equivalents as reported in statement of cash flow 44,446 33,699 38,789 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 December 31, 2021, term deposits included a term deposit of €9.0 million with a maturity of one month and deposits of €0.1 million convertible into cash immediately. As of December 31, 2022, term deposits included a term deposit of €12.0 million with a maturity of one month and deposits of €0.1 million convertible into cash immediately. Accounting policies Common shares are classified under shareholders’ equity. The costs of share capital transactions that are directly attributable to the issue of new shares or options are recognized in shareholders’ equity as a deduction from the proceeds from the issue, net of tax. As of December 31, 2022, the capital of the Parent Company consisted of 31,018,553 shares, fully paid up, with a nominal value of 0.10 euro. Number of shares As of December 31, 2019 17,940,035 Conversion of convertible notes ("OCA") 2,094,704 Exercise of warrants 16,080 Free shares acquired 6,743 As of December 31, 2020 20,057,562 Shares issued as part of the April Registered Direct Offering 4,137,932 Shares sold under the at-the-market (“ATM”) program 744,186 Shares issued as part of the December Registered Direct Offering 3,078,432 Conversion of convertible notes ("OCA") 2,977,887 Free shares acquired 22,554 As of December 31, 2021 31,018,553 Shares issued as part of the April Registered Direct Offering — Shares sold under the at-the-market (“ATM”) program — Shares issued as part of the December Registered Direct Offering Conversion of convertible notes ("OCA") — Free shares acquired As of December 31, 2022 31,018,553 Capital management The capital is managed to ensure that the Company will be able to continue as a going concern while maximizing the return to shareholders through the optimization of the debt and equity balance. The Company is not subject to any externally imposed capital requirements. For additional information on capital and premium increase see: 2.9 Events after the close of the reporting period The number of shares presented does not include the warrants issued in connection with the registered offerings in 2021. • For the registered offering of April 2021: 3,103,449 Warrants, giving the right to subscribe to one share of the company. The Warrants have an exercise price of 7.5 euros per share, will be immediately exercisable upon issuance and will expire two years from the issuance date. • For the registered offering of December 2021: 2,308,824 Warrants, giving the right to subscribe to one share of the company. The Warrants have an exercise price of 2.83 euros per share, will be immediately exercisable upon issuance and will expire two years from the issuance date. Accounting policies A provision is recognized when the Company has a current or implicit legal obligation resulting from a past event, where the obligation can be reliably estimated, and where it is probable that an outflow of resources representing economic benefits will be necessary to settle the obligation. The portion of a provision that become due in less than one year is recorded under current liabilities, and the balance under non-current liabilities. The provisions are discounted when the impact is material. Disclosure is made on any contingent assets and liabilities where the impact is expected to be material, except where the probability of occurrence is low. (amounts in thousands of euros) 12/31/2020 12/31/2021 12/31/2022 Provision for retirement indemnities 652 524 318 Other provision 101 Provisions - non-current portion 652 524 419 Restructuring provision — — 166 Other provision 148 Provisions - current portion — — 314 Provision for retirement indemnities - defined benefit plans Accounting policies The French employees of the Company receive the retirement benefits stipulated by law in France: • a compensation paid by the Company to employees upon their retirement (defined-benefit plan); and • a payment of retirement pensions by the social security agencies, which are financed by the contributions made by companies and employees (defined contribution plans in France). The French Company pension commitments are not covered by plan assets.The American employees do not receive defined-benefit plan. For the defined-benefit plans, the costs of the retirement benefits are estimated using the projected credit unit method. The consolidated financial statements have been prepared applying the IFRS Interpretations Committee (IFRIC) agenda decision dated May 24, 2021 “Attributing Benefit to Periods of Service (IAS 19 Employee Benefits. The Company applies the Pharmaceutical Industry” collective agreement (“Convention collective nationale de l’industrie pharmaceutique”), which caps the pension rights after 30 years of employment. Through its agenda decision, IFRIC considers that, as long as, on the one hand, no rights are acquired in the event of departure before retirement age and, on the other hand, rights are caped after a certain number of years of service, the retirement benefits should be spread over the last 30 years before the retirement date that give rights to those benefits. The retirement benefit commitments are valued at the current value of the future payments estimated using, for discounting, the market rate for high quality corporate bonds with a term that corresponds to the estimated term for the payment of the benefits. The difference between the amount of the provision at the beginning of a period and at the close of that period is recognized through profit or loss for the portion representing the costs of services rendered and the net interest costs, and through other comprehensive income for the portion representing the actuarial gains and losses. The Company’s payments for the defined-contribution plans are recognized as expenses on the statement of income (loss) of the period in which they become payable. As part of the estimate of the retirement commitments, the following assumptions were used for all categories of employees: 12/31/2020 12/31/2021 12/31/2022 Discount rate 0.34 % 0.79 % 3.16 % Wage increase 2 % 2 % 2 % Social welfare contribution rate 39 % 39 % 39 % - executive employees 51 % 51 % 51 % - executive management 49 % 49 % 49 % Expected staff turnover High High High - executive management Low Low Low Age of retirement 65 - 67 years 65 - 67 years 65 - 67 years Mortality table INSEE 2019 TGH05 TGF05 TGH05 TGF05 The change in the provision for retirement indemnities is as follows: (amounts in thousands of euros) As of December 31, 2019 506 Service costs 123 Financial costs 4 Actuarial gains and losses 19 As of December 31, 2020 652 Service costs (63) Financial costs 3 Actuarial gains and losses (68) As of December 31, 2021 524 Curtailment Gain - restructuring plan 2022 (PSE) (63) Service costs 82 Financial costs 9 Actuarial gains and losses (235) As of December 31, 2022 318 The final IFRS IC agenda decision of May 24, 2021 regarding the attribution of benefits to periods of service did not have a significant impact in 2021. As of December 31, 2022, the impact regarding the restructuring plan (PSE) is €(63) thousand. Accounting policies Unless otherwise stated, financial liabilities are initially recognized at fair value less transaction costs and subsequently measured at amortized cost using the effective interest rate method. Financial liabilities with a maturity of more than one year are classified in “Financial liabilities – non-current portion” in accordance with IAS 1. The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire. On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed), if any, is recognised in profit or loss. (amounts in thousands of euros) Convertible notes Conditional advances Bank loans Other Total As of December 31, 2019 — 1,321 61 38 1,420 Collection 14,155 2,979 10,000 — 27,134 Fair value of embedded derivatives (1,070) — — — (1,070) Amortized cost 1,684 121 20 — 1,825 Conversion (12,600) — — — (12,600) Repayment — — (62) — (62) Reclassification — — — — — FX rate impact — — — (3) (3) As of December 31, 2020 2,169 4,421 10,019 35 16,644 Collection 11,423 734 12,157 Fair value of embedded derivatives (758) (758) Amortized cost 1,566 126 58 1,750 Conversion (14,400) (14,400) Repayment — FX rate impact 3 3 As of December 31, 2021 — 5,281 10,077 38 15,396 Increase 3,081 3,081 Fair value of embedded derivatives — Amortized cost (6) (6) Conversion — Extinguishment of conditional advance (5,281) (5,281) Repayment (3,081) (3,081) FX rate impact 3 3 As of December 31, 2022 — — 10,071 41 10,112 During the first half of 2022, the Company entered into a new financing agreement with Société Générale secured by the Company’s 2021 CIR receivable of which €3,081k was received at June 30, 2022. and fully reimbursed in October 2022. Financial liabilities by maturity December 31, 2020 (in thousands of euros) Less than one year One to three years Three to five years More than five years Total Convertible notes 2,169 — — — 2,169 Conditional advances — — — 4,421 4,421 Bank loans 96 3,768 4,069 2,086 10,019 Other — 35 — — 35 Total financial liabilities 2,265 3,803 4,069 6,507 16,644 December 31, 2021 (in thousands of euros) Less than one year One to three years Three to five years More than five years Total Convertible notes — Conditional advances 5,281 5,281 Bank loans 164 5,014 4,424 475 10,077 Other 38 38 Total financial liabilities 164 5,052 4,424 5,756 15,396 December 31, 2022 (in thousands of euros) Less than one year One to three years Three to five years More than five years Total Convertible notes — Conditional advances — Bank loans 2,565 4,972 2,535 10,072 Other 40 40 Total financial liabilities 2,565 5,012 2,535 — 10,112 Accounting policies In accordance with IFRS 9, a financial instrument with all three of the following characteristics is a derivative: • its value changes in response to changes in the so-called “underlying” • it requires no initial net investment, • it is settled at a future date. Derivatives are initially recognized at their fair value and subsequent changes are recognized in financial income (loss). In accordance with IAS 32, a derivative is qualified as an equity instrument only if it will be necessarily settled by exchanging a fixed amount of cash for a fixed amount of equity instruments of the issuer. Equity instruments are initially recognized at their fair value and are not subsequently remeasured. Generally, convertible notes are qualified as compound instruments as they have both a financial liability and an equity component. Because the conversion option is a derivative, if the conversion option does not meet the “fixed-for-fixed” condition, the conversion option is classified as a financial derivative liability. In that case, convertible notes are qualified as hybrid instrument in accordance with IFRS 9 comprising a financial liability for the host contract plus an embedded derivative instrument for the conversion option. The initial bifurcation of a separable embedded derivative does not result in any gain or loss being recognized. Because the embedded derivative component is measured at fair value on initial recognition, the carrying amount of the host contract on initial recognition is the difference between the carrying amount of the hybrid instrument and the fair value of the embedded derivative. On June 24, 2020, the Company signed a financing agreement with Luxembourg-based European High Growth Opportunities Securitization Fund in the form of convertible notes with share subscription warrants attached (“OCABSA”). The Company issued 1,200 note warrants for free that may be exercised in tranches for the same number of convertible notes at the Company request until June 25, 2022. European High Growth Opportunities Securitization Fund could have requested the issuance of two tranches. Each tranche gave rise to the issuance of 60 convertible notes with 33,670 warrants attached (or of 30 convertible notes with 16,835 warrants if the Company's market capitalization is lower to €50 million during 20 consecutive trading days). The convertible notes (“OCA”) have the following characteristics: • Nominal value: €50 thousand • Subscription price: 98% of the nominal value • Maturity: 12 months • The notes will not bear interests • Conversion ratio: N = Vn / P where ◦ N is the number of Shares that can be subscribed ◦ Vn is the nominal value of a convertible note ◦ P is the higher of (i) 95% of the volume weighted average trading price of the Company's shares on Euronext Paris during the 3 consecutive trading days preceding the conversion date, (ii) the nominal value of the share and (iii) the minimum issuance price of a share as provided in the 25th resolution of the Shareholder's Meeting held on June 21, 2019 (or any resolution that may succeed it), i.e., to date 80% of the volume-weighted average (in the central order book and excluding off-market block trades) of the Company's share price on Euronext Paris during the 3 trading sessions prior to the pricing of the issue price, it being specified that the theoretical value of the warrants will be taken into account and that the Shareholder's Meeting has set at 10 million the maximum number of shares that may be issued. The share subscription warrants (“BSA”) have the following characteristics: • Maturity: 5 years • Each warrant give the right to subscribe one share • Exercise price: 120% of the lowest volume-weighted average price of the Company's share observed over the fifteen At the end of 2022, the Company has issued nine tranches of €3.0 million each on July 6, 2020, August 24, 2020, November 17, 2020, December 7, 2020, December 22, 2020, March 2, 2021, May 19, 2021, ,July 22, 2021 and August 24,2021 respectively (of which two tranches were issued on European High Growth Opportunities Securitization Fund request) , representing a total amount of €27.0 million. Consequently, 540 O CA were issued with 303,030 BSA attached, all the OCA were converted into the Company common shares at the end of 2021 (see note 4.6). As of December 31, 2022, 0 OCA and 303,030 BSA are outstanding. Derivative liabilities fall under category 3 defined by IFRS 13. If the convertible notes are converted before the estimated maturity date, any difference between the fair value of the shares issued and the cumulative amount of the financial liability and the derivative liability at the date of conversion is recognized in financial income (loss). Fair value of the conversion option is estimated with a Monte-Carlo valuation model using the following main assumptions: 12/31/2020 12/31/2021 12/31/2022 Number of convertible notes 48 0 0 Estimated conversion price € 6.75 € — € — Expected term 30 days 0 0 Fair value (in thousands of euros) 129 — — Fair value of the warrants is estimated with a Black & Scholes valuation model using the following main assumptions: 12/31/2020 12/31/2021 12/31/2022 Number of warrants 168,350 303,030 303,030 Price of the underlying share € 7.11 € 2.12 € 0.37 Expected dividends — % — % — % Volatility 58.11 % 47.33 % 73.04 % Expected term 2 years 1 year 3 years to 4 years Fair value (in thousands of euros) 288 0 0 Accounting policies Funds received from Bpifrance in the form of conditional advances are recognized as financial liabilities, as the Company has a contractual obligation to reimburse Bpifrance for such conditional advances in cash based on a repayment schedule provided the conditions are complied with. Receipts or reimbursements of conditional advances are reflected as financing transactions in the statement of cash flows. The amount resulting from the benefit of conditional advances that do not bear interest at market rates is considered a subsidy. This benefit is determined by applying a discount rate equal to the rate the Company would have to pay for a bank borrowing over a similar maturity. The implicit interest rate resulting from taking into account all the repayments plus the additional payments due in case of commercial success is used to determine the amount recognized annually as a finance expense. In the event of a change in payment schedule of the stipulated repayments of the conditional advances, the Company recalculates the net book value of the debt resulting from the discounting of the anticipated new future cash flows at the initial effective interest rate. The adjustment that results therefrom is recognized in the consolidated statement of income (loss) for the period during which the modification is recognized. Since our inception, we have received non-refundable subsidies from Bpifrance in the amount of €2.7 million in connection with our preclinical research programs. We have also received €4,895 thousand in three conditional advances from Bpifrance related to TEDAC research program. Within the scope of the TEDAC project, Bpifrance granted to the Company a conditional advances for a total amount of €4,895 thousand. The accrued interest of this conditional advances amounted to €386 thousand as of December 31, 2022 This conditional advance was paid upon completion of the following key milestones: • €63 thousand upon signature of the agreement (received in 2012) • €1,119 thousand upon the milestone n°4 (received in 2016) • €2,979 thousand upon the milestone n°6 (received in 2020) • €734 thousand upon the milestone n°7 (received in 2021) The TEDAC research program, which is funded by non-refundable subsidies and conditional advances from Bpifrance, was funded according to a specified schedule set forth in the contract, subject to completion of milestones. The final research report was provided to BPI in 2021. Subsidies and conditional advance were received with the last milestone in 2021, for a total amount of €7.0 million. The conditional advance reimbursement in cash is initiated upon achieving cumulative sales of €10 millions on Graspa solid tumor product. Following the negative results of the Trybeca 1 clinical trial and the unsuccessful completion of the Trybeca 2 clinical trial in 2022, the Company has no possibility left any more to market and sell Graspa in the treatment of solid tumors. As a consequence in 2022 the extinguishment of the conditional advance has been recorded as subsidy income for €4,895 thousand (see note 3.1) and as financial income for €386 thousand (see note 3.5). In 2017, the Company received a bank loan amounting to €1.9 million with Société Générale with a 0.4% interest rate and 36 monthly repayment terms to finance its investments. This bank loan is fully repaid as of December 31, 2020. In November 2020, the Company received two loans of €5.0 million each, in the form of State-Guaranteed Loan (Prêt Garanti par l’Etat, or PGE in France), with Bpifrance and Société Générale. The loans bear interest at fixed rates of 1.67% and 0.25% per annum respectively, with an initial term of one year and an option to spread over five-year including one year of deferred payment and four years of reimbursement. The Company used the deferral options, reimbursement will start in 2023. The Proposed Merger could trigger Accounting policies In accordance with IFRS 16 Leases (“ IFRS 16 ”), applicable since January 1, 2019, the lease liability is recognized on the lessee’s balance sheet when the asset linked to the lease agreement become available. The lease liability is recognized for an amount equal to the present value of the lease payments over the lease term. The lease liability is then increased by the interest expense and decreased by the rents paid. The lease liability may be remeasured in the following situations: • Modification related to the assessment of the exercise of an option to purchase or the extension or the non-exercise of a termination option (which become reasonably certain); • Rent adjustments based on rates and indices provided in the contracts. The duration corresponds to the firm period of the commitment and takes into account the optional periods that are reasonably certain to be exercised. The Company has applied exemptions set out in IFRS 16 regarding: • Contracts with a lease term of 12 months. These contracts have resulted in an expense of approximately €— thousand in 2020, €824 thousand in 2021 and €654 thousand in 2022. • Contracts for low value assets. These contracts have resulted in an expense of approximately €31 thousand in 2020, €30 thousand in 2021 and €20 thousand in 2022. (in thousands of euros) Lease liabilities As of December 31, 2019 12,703 First application of IFRS 16 — Allowance received from a lessor 188 Increase without cash impact 98 Repayment (1,615) Decrease without cash impact — FX rate impact (570) Capitalized interests — Reclassification — As of December 31, 2020 10,804 Increase without cash impact 399 Repayment (1,702) Decrease without cash impact — FX rate impact 478 Capitalized interests 0 Reclassification 0 As of December 31, 2021 9,979 Increase without cash impact 88 Repayment (1,545) Decrease without cash impact (1) (5,296) FX rate impact 229 Capitalized interests — Reclassification 0 As of December 31, 2022 3,455 (1) Decrease of Princeton lease liability in connection with the sale of the |
