Quantum Genomics — Interim / Quarterly Report 2020

Oct 14, 2020

INTERIM FINANCIAL REPORT 1st HALF 2020 Business report Financial statements as of 30 June 2020 Notes to the interim financial statements Statutory auditors' report

Quantum Genomics Société Anonyme (public limited company) With share capital of €8,632,010.21 Registered office: 33 rue Marbeuf - 75008 Paris Paris Trade Registry no. 487 996 647

1. BUSINESS AND HIGHLIGHTS IN THE FIRST HALF OF 2020

In the first half of 2020, Quantum Genomics (the "Company") took major steps forward in its research programmes, notably by preparing for the launch of Phase III Fresh in resistant and difficult-to-treat hypertension.

1.1 Economic and scientific progress

On 28 January 2020, the Company announced the appointment of Benoît Gueugnon as Vice President Finance. He took over from Marc Karako, who stepped down from his role.

On 26 March 2020, the Company successfully implemented a new financing solution consisting of a loan of not more than €8 million, renewable twice, and an issue of share subscription warrants as part of an agreement with Negma Group Ltd.

On 7 April 2020, the Company published a memo on the impact of the Covid-19 public health crisis on clinical research activities.

In May 2020, the Company announced the results of the intermediate analysis of the firibastat study in patients with renal insufficiency. The results show that firibastat could be used in treating hypertension and heart failure even in the event of associated renal insufficiency, subject to adjustment of the dose.

1.2 Legal proceedings

The Company's management bodies made the following decisions during the first half of 2020:

• the Board of Directors meeting on 28 January 2020, after a Compensation and Appointments Committee meeting held on the same day:
  • recognised the exercise of 290,150 BSA06-2010 warrants issued by the Board decisions of 30 June 2010 and 5 July 2011, thus increasing the Company's capital by €6,444.69 by the creation and issuance of 16,119 new shares;
  • made decisions on the compensation policy for employees within the Company, in accordance with the recommendations of the Compensation and Appointments Committee, which met on the same day;
  • decided to increase the compensation of the CEO, in accordance with the recommendations of the Compensation and Appointments Committee, which met on the same day;
  • reviewed the various possible financing options for the Company;
  • carried out a progress report on the partnerships under discussion;
  • appointed a new Chief Financial Officer;

• under the terms of decisions dated 31 January 2020, the CEO recognised the exercise of (i) 535,220 BSAB warrants issued by a decision of the Board of Directors dated 22 October 2018, and (ii) 1,100 warrants issued by a decision of the Board of Directors dated 25 July 2017, thus increasing the Company's share capital by €214,321.09 through the creation and issuance of 536,045 new shares;
• the Board of Directors meeting on 17 March 2020 discussed the next financing operations to be put in place;
• under the terms of decisions dated 25 March 2020, the CEO recognised the exercise of 110,000 BSAB warrants issued by a decision of the Board of Directors dated 22 October 2018, thus increasing the Company's share capital by €43,980.11 through the creation and issuance of 110,000 new shares;
• on 25 March 2020, the Board of Directors:
  • examined and approved the financial statements for the financial year ended 31 December 2019;
  • proposed the allocation of the income for the financial year ended 31 December 2019;
  • decided to submit to this General Meeting new delegations of authority to the Board of Directors;
  • took the necessary decisions, as a result of the above decisions, for the preparation and convening of the Ordinary Annual General Meeting called to approve the financial statements for this financial year;
• on 26 March 2020, the Board of Directors:
  • approved the terms and conditions of a new Company financing operation;
  • authorised the conclusion and signature of the contract to implement said financing transaction;
  • decided to increase the capital in cash, within the framework of a delegation of authority decided by the Company's Annual Ordinary and Extraordinary General Meeting of 27 June 2019, with the elimination of the preferential subscription right to a named beneficiary, and set out the terms and conditions of the issue;
  • requested payment of the first tranche of the financing;
  • decided on the issue of securities giving access to the Company's capital, within the framework of a delegation of authority decided by the Company's Annual Ordinary and Extraordinary General Meeting of 27 June 2019, with the elimination of the

preferential subscription right to a named beneficiary, and set out the terms and conditions of the issue;

• granted powers to the CEO in connection with the implementation of the adopted resolutions;
• issued the supplementary report of the Board of Directors, provided for by the provisions of articles L. 225-129-5 and R. 225-116, paragraph 3, of the French Commercial Code;
• the CEO, pursuant to decisions dated 31 March 2020, determined the claims held against the Company;
• the CEO, pursuant to decisions dated 2 April 2020, in particular:
  • noted the final completion of the capital increase decided by the Board of Directors on 26 March 2020, in the 3th and 6th resolutions adopted, on delegations from the Company's General Meeting of Shareholders of 27 June 2019;
  • decided on the corresponding amendment to Article 6 of the Company's articles of association;
• the CEO, in accordance with the terms of the decisions dated 9 April 2020, noted the final completion of the issue of securities giving access to the Company's capital, decided by the Board of Directors on 26 March 2020, in the 5th and 6th resolutions adopted, on delegations from the Company's General Meeting of 27 June 2019;
• the CEO, pursuant to decisions dated 30 April 2020, (i) determined, in accordance with article R.225-134 of the French Commercial Code, the total amount of the claim of NEGMA GROUP LTD held against the Company on the date of its decisions, and (ii) recognised the exercise of 454,441 BSA2020-T1 warrants issued by decision of the Board of Directors dated 26 March 2020, thus increasing the Company's share capital by €181,694.25 through the creation and issuance of 454,441 new shares;
• on 15 May 2020, the Board of Directors:
  • adjusted the arrangements regarding the organisation and holding of the next Annual Ordinary and Extraordinary General Meeting, due to the current public health crisis related to the Covid-19 pandemic;
  • convened the Annual Ordinary and Extraordinary General Meeting;
  • recognised the exercise of share subscription warrants (BSA06-2010);
• the CEO, pursuant to decisions dated 31 May 2020, (i) determined, in accordance with article R.225-134 of the French Commercial Code, the total amount of the claim of NEGMA GROUP LTD held against the Company on the date of its decisions, and (ii) recognised the exercise of 466,761 BSA2020-T1 warrants issued by decision of the Board

of Directors dated 26 March 2020, thus increasing the Company's share capital by €186,620.02 through the creation and issuance of 466,761 new shares;

• the CEO, pursuant to decisions dated 30 June 2020, (i) determined, in accordance with article R.225-134 of the French Commercial Code, the total amount of the claim of NEGMA GROUP LTD held against the Company on the date of its decisions, and (ii) recognised the exercise of 466,761 BSA2020-T1 warrants issued by decision of the Board of Directors dated 26 March 2020, thus increasing the Company's share capital by €186,620.02 through the creation and issuance of 466,761 new shares.

As a result of the above, at 30 June 2020 the Company's share capital amounted to €8,115,716.05 divided into 20,298,464 shares.

1.3 Disputes

As at the date of this report, the Company had no disputes in progress.

2. EARNINGS AND FINANCIAL POSITION IN THE FIRST HALF OF 2020

A copy of the interim financial statements as at 30 June 2020 and the statutory auditor's report are attached to this report.

2.1 Operating income

The Company recorded zero turnover in the first half of the year.

All operating income amounted to €377,290 compared with €284,783 in the first half of 2019, while operating expenses amounted to €6,332,492 compared with €5,608,903 in the first half of 2019, resulting in an operating loss of €5,955,202.

Wages and salaries totalled €812,770 and the associated social welfare costs amounted to €321,267, for a salaried workforce of 11 people as at 30 June 2020.

2.2 Financial income and EBIT

Financial expenses were €5,373 compared with €29 in the first half of 2019.

Financial income was €3,124 compared with €5,961 in the first half of 2019.

EBIT came in at a loss of €5,957,451.

2.3 Non-recurring income

Non-recurring income in the first half of 2020 amounted to €16,508.

2.4 Income for the financial year

The interim accounting statements as at 30 June 2020 showed a net loss of €5,080.966,

after taking into account the research tax credit of €859,977.

2.5 Change in shareholders' equity and equity

At 30 June 2020 shareholders' equity stood at €10,383,000, an increase of €212,000 compared with the end of 2019.

Taking into account conditional advances from Bpifrance amounting to €922,0000, equity stands at €11,305,000.

2.6 Change in debt and cash flow

The Company had financial debt of €2,352,000 as at 30 June 2020 corresponding to the payments received under the financing contract signed with Negma Ltd on 26 March 2020, still to be repaid by issue of BSA warrants.

Cash flow stood at €13,194,000, compared with €11,164,000 as at 31 December 2019.

2.7 Changes in Working Capital Requirement (WCR)

WCR increased by €717,000 during the first half of 2020.

3. SUBSEQUENT EVENTS TO 30 JUNE 2020

3.1 Scientific and economic progress

On 13 July 2020, the Company announced the recruitment of the first patient in the Fresh study, its phase III pivot study in difficult-to-treat and resistant hypertension.

In September 2020, the Company and Orient EuroPharma (OEP) entered into an exclusive licensing and collaboration agreement for firibastat in South-East Asia, Australia and New Zealand. Under the terms of the agreement, Orient EuroPharma (OEP) will receive exclusive marketing rights for firibastat for the treatment of hypertension in South-East Asia, Australia and New Zealand. The Company will receive upfront and milestone payments amounting to \$19 million plus sales royalties. OEP will finance the clinical part conducted in Taiwan as part of the overall phase III pivotal study conducted by the Company in difficult-to-treat and resistant hypertension.

3.2 Legal operations

Since 30 June 2020, the following operations have been conducted:

• the CEO, pursuant to decisions dated 1 July 2020, (i) determined, in accordance with article R.225-134 of the French Commercial Code, the total amount of the claim of NEGMA GROUP LTD held against the Company on the date of its decisions, and (ii) recognised the exercise of 128,677 BSA2020-T1 warrants issued by a decision of the Board of Directors dated 26 March 2020, thus increasing the Company's share capital by €51,447.54 through the creation and issuance of 128,677 new shares;
• the Annual Ordinary and Extraordinary General Meeting of Shareholders held on 16 July 2020, on second call, having failed to meet the quorum for the first call, in particular:
  • examined and approved the financial statements for the year ended 31 December 2019,
  • discharged the Board Members,
  • allocated the earnings of the financial year,
  • assigned the retained losses to the item "issue premium, merger premium, contribution premium",
  • approved the agreements referred to in articles L. 225-38 et seq. of the French Commercial Code,
  • authorised the Board of Directors to carry out transactions on the Company's shares, pursuant to the provisions of article L. 225-209 of the French Commercial Code,

• delegated authority to the Board of Directors to increase the share capital, with elimination of the preferential subscription right and public offering of financial securities,
• delegated authority to the Board of Directors to decide on the increase in share capital, by issuing – with the preferential subscription right maintained – shares and/or securities giving entitlement to the Company's capital and/or by issuing securities giving right to the award of debt securities,
• delegated authority to the Board of Directors to decide on the increase in share capital, by issuing – with the preferential subscription right eliminated – shares and/or securities giving entitlement to the Company's capital and/or by issuing securities giving right to the award of debt securities through an offer referred to in article L. 411-2 II of the French monetary and financial code, particularly to qualified investors or a small circle of investors,
• delegated authority to the Board of Directors to decide on the increase in share capital, by issuing shares and/or securities giving entitlement to the Company's capital and/or by issuing securities giving right to the award of debt securities, with elimination of the preferential subscription right for the benefit of a category of persons (strategic operation),
• delegated authority to the Board of Directors to decide on the increase in share capital, by issuing shares and/or securities giving entitlement to the Company's capital and/or by issuing securities giving right to the award of debt securities, with elimination of the preferential subscription right for the benefit of a category of persons (investment operation),
• delegated authority to the Board of Directors to decide on the increase in share capital through the capitalisation of issue premiums, reserves, profits or other items,
• delegated authority to the Board of Directors to increase the number of securities to be issued in case of a capital increase with or without a preferential subscription right,
• delegated authority to the Board of Directors to decide on the increase in share capital through the issuance of shares or equity interests reserved for members of savings plans, eliminating the preferential share subscription right for their benefit,
• delegated authority to the Board of Directors to grant share subscription or purchase options,
• delegated authority to the Board of Directors to carry out bonus awards of existing shares or shares to be issued to all or some employees and corporate officers of the group,
• authorised the Board of Directors to reduce the capital by cancelling repurchased shares;

• the CEO, pursuant to decisions dated 31 July 2020, (i) determined, in accordance with article R.225-134 of the French Commercial Code, the total amount of the claim of NEGMA GROUP LTD held against the Company on the date of its decisions, and (ii) recognised the exercise of 466,761 BSA2020-T1 warrants issued by decision of the Board of Directors dated 26 March 2020, with the Company's share capital increasing by €186,620.02 through the creation and issuance of 466,761 new shares;
• in particular, on 28 August 2020, the Board of Directors, after a Compensation and Appointments Committee meeting held on the same day:
  • made decisions on the CRO (contract research organisation) budget of PRA Health Sciences as part of the conduct of the Phase III programme.
  • noted the final completion of the capital increase of €73,497.97 following the allocation of free shares to employees and directors of the Company;
  • decided on the corresponding amendment of article 6 of the Company's articles of association;
  • awarded bonus shares to the Company's employees and/or officers, on the basis of the delegation of authority granted by the Annual Ordinary and Extraordinary General Meeting of 16 July 2020 ("AGA08-2020");
  • issued the supplementary report of the Board of Directors;
• the Chief Executive Officer, pursuant to decisions dated 31 August 2020, (i) determined, in accordance with article R.225-134 of the French Commercial Code, the total amount of the claim of NEGMA GROUP LTD held against the Company on the date of its decisions, and (ii) recognised the exercise of 304,879 BSA 2020-T1 warrants issued by decision of the Board of Directors dated 26 March 2020, with the Company's share capital increased by €121,896.48 through the creation and issuance of 304,879 new shares;
• on 14 September 2020, the Board of Directors:
  • made decisions on the partnership operation with Orient EuroPharma;
  • authorised the CEO to conclude negotiations and sign with Orient EuroPharma;
• the CEO, pursuant to decisions dated 30 September 2020, (i) determined, in accordance with article R.225-134 of the French Commercial Code, the total amount of the claim of NEGMA GROUP LTD held against the Company on the date of its decisions, and (ii) recognised the exercise of 430,032 BSA -2020-T1 warrants issued by decision of the Board of Directors dated 26 March 2020, with the Company's share capital increased by €171,935.06 through the creation and issuance of 430,032 new shares;

• in particular, on 30 September 2020, the Board of Directors, after a Compensation and Appointments Committee meeting held on the same day:
  • reviewed and approved the Company's half-yearly financial statements for the first half of 2020, a copy of which is appended to this report;
  • finalised and approved the 2020 interim financial report;
  • awarded bonus shares to the Company's employees and/or officers, on the basis of the delegation of authority granted by the Annual Ordinary and Extraordinary General Meeting of 16 July 2020 ("AGA09-2020");

As a result of the operations referred to in sections 1.2 and 3.2 of this report, the Company's share capital is €8,632,010.21, divided into 21,589,783 shares as of the date of this report.

4. OUTLOOK

Thanks to cash available as at 30 June 2020 (€13.194 million) and the implementation of the new financing agreement with Negma Group Ltd on 26 March 2020, the Company is able to continue its programmes beyond the third quarter of 2021.

Intermediary situation

		Period			Previous period
Assets			Gross Amount	Depr. or Allow.	Net amount	at : 31/12/2019
Uncalled subscribed capital
	Inta rgible fix ed asset:	Start up costs Research and development costs Franchises, patents and similar assets Goodwill Other intangible fixes assets Intangible assets in progress Advance payments on intangible fixed assets TOTAL	6 283 360 000	6 283	360 000	360 000
		Land	366 283	6 283	360 000	360 000
Fixed as sets	Ta rejible fixed a suets	Buildings Industrial fixtures and equipment Other tangible fixed assets Tangible fixed assets in progress Advance paymments on tangible fixed assets	22 911 72 061	20 686 47 747	2 224 24 314	3 550 23 655
		TOTAL	94 973	68 434	26 538	27 206
	First riclial fixed asset s	Investments measured using the equity method Other investments Loans to group and related companies Investments held in portfolio for the long term Other investments loans	473 089	રે 069	468 020	459 202
		Other financial assets	32 677		32 677	37 880
		TOTAL	505 766	ર 069	500 697	497 083
		Total fixed assets	967 044	79 786	887 236	884 289
	Invento ries	Raw material and supplies Work in progress (goods) Work in progress (services) Finished goods and by-production Merchandise	1 070 357		1 070 357	332 971
		TOTAL	1 070 357		1 070 357	332 971
		Advances to suppliers	231 875		231 875	238 822
Current assets	Receveible	Trade accounts receivable Other receivables Unpaid called capital	1611916		1 611 916	2 005 008
		TOTAL	1611916		1611 916	2 005 008
	Other	Marketable securities (of which own shares : ) Cash instruments	5 002 493		5 002 493	5 000 000
		Available funds	8 191 371		8 191 371	6 164 404
TOTAL Prepaid expenses		13 193 864		13 193 864	11 164 404
			1 551 203			480 778
Total current assets			17 659 216		17 659 216	14 221 985
Defered charges Premiums on redemption of borrowings Exchange rate differences assets			304		304	82
Total assets			18 626 544	79 786	18 546 757	15 106 357

	Liabilities	Period	Previous period
Shareholder's funds	8 115 716 ) Share capital (of which paid up : Share premiums (mergers, contributions) Revaluation variance Equity reserve Reserves Legal reserve	8 115 716 16 249 012	7 222 655 11 849 220
	Statutory reserves Tax regulated reserves Other reserves Profit and loss account brought forward	177 574	177 574
	Previous results not yet alloted Result for the financial year (profit or loss)	-9 078 421 -2 080 966	-9 078 421
	Net worth before allocation Investment grants Special provision for tax purposes	10 382 915	10 171 029
	Total	10 382 915	10 171 029
Other funds	Subordinated equity Advances subject to covenants	922 513	692 500
	Total	922 513	692 500
Provisions	Provisions for risks Provisions for future costs	304 252 379	82 294 152
	Total Financial liabilities	252 683	294 234
	Convertible debenture loans Other debenture loans
	Borrowing from credit institution Other borrowings	1 891 2 350 002	1 382
	Total	2 351 893	1 382
Liabilities	Advances received on orders
	Trade accounts payable and related liabilities Taxes and social debts Liabilities related to fixed assets	4 134 203 441 640	3 367 053 571 860
	Other debts Cash instruments	60 618	5 771
	Total	4 636 463	3 944 684
	Income recorded in advance
	Total liabilities and income recorded in advance	6 988 356	3 946 067
	Exchange rate differences liabilities	288	2525
	TOTAL LIABILITIES	18 546 757	15 106 357
	Leasing for buildings Leasing for other equipment Non expired discounted notes receivable

	Periods U1/01/2019 SUNUQUZUTA 01/01/2020 30/06/2020	Length	o months 6 months
		France	Export	Total	Previous period
	Sales of purchased goods
	Sales of manufactured goods
Operating income	Sales of services Net sales
	Changes in stock of manufactured goods and work in progress
	Production of fixed assets capitalised
	Partial profits on long term contracts
	Trading incentive grants			362 488	279 191
	Write back of depreciation, provisions and transferred charges Other income	14 802	5 591
			Total	377 290	284 783
	Purchases Goods
	Change in inventory
	Raw materials and other supplies Purchases	Change in inventory		1 006 187
	Other purchases and expenses			-737 386 4 837 424	3 946 065
	laxes			11 856	8736
	Wages and salaries			812 770	916 166
	Social security charges			321 267	659 939
	Depreciation · on fixed assets	Depreciation Provisions		5 409	୧ ୫୦୦
Operating expenses	and · on current assets: provisions
	Provisions · for risks and future costs: provisions
	Other expenses			74 964	71 096
			Total A Operating result	6332 492 202 886 5-	5 608 903 -5 324 120
	Profit attributed or loss transferred		B
venture Oper.	Loss attributed or profit transferred		C
	From shares in group companies
	From other investments			3 042	5 893
in come	Interests and similar incomes Write back of provisions and transferred charges			82	67
Anancial	Exchange gain
	Net profit on disposals of current financial investments
			Total	3 124	2 a61
	Increase of provisions against financial assets Interests payable and similar charges			5373	29
Hinancial	Exchange loss
expenses	Net losses on disposals of current financial investments
			Total	5 373	29
			D Net financial result	-2 249	5 932
	RESULT OF ORDINARY OPERATIONS BEFORE CORPORATE TAX ON PROFIT (t+A+B-C+D) On operating items		E	-5 957 451 3 182	-5 318 188 260 000
	On capital items			155 503	101 769
Exceptional Income	Write back of provisions and transferred charges				29 591
			Total	11-28 685	391 360
	On operating items On capital items			260 141 617	57811
Exceptional expenses	Depreciation and provisions				29 605
			Total	142 177	87 416
			Net exceptional result F	TC 208	303 943
	Employees' profit sharing plan		G H
	Corporate tax on profit	-859 977	-885 709
	PROFIT AND LOSS ( + E + F - G -H )			-5 080 966	-4 128 535

Cash flow statement in €K	H1 2020	2019	2018	H1 2018	2017
Income for the period	-5,081	-9,078	-11,990	-6,208	-9,381
Adjustment of non-cash entries	-31	-211	162	25	173
Income for the period adjusted for non-cash effects	-5,112	-9,289	-11,828	-6,183	-9,208
Change in inventories	-737	89	-178	105	767
Change in other receivables	400	-223	0
Change in prepaid expenses	-1,071	133	1,418	1,235	1,101
Change in trade payables	767	-1,365	125	62	-40
Change in tax liabilities	-129	1	-7	41	1
Change in other debts	53	-11	-431	-930	-598
Changes in Working Capital Requirement	-717	-1,376	927	513	1,231
CASH FLOW FROM OPERATIONS	-5,829	-10,665	-10,901	-5,670	-7,977
Acquisition of intangible assets	0	-100	0		40
Acquisition of tangible assets	-5	-18	-16	-14	-8
Acquisition of long-term investments	-9	105	-215	-g	114
CASH FLOW FROM INVESTMENT	-14	-13	-231	-23	146
Capital increase (net of fees)	5,293	7,382	15,071	623	7,733
Increase in financial debt (Negma)	2,350	0	0		0
Repayment of loans and current account	0	0	0		-10
Sundry (including Bpifrance advance)	230	-337	-231	-48
CASH FLOW FROM FUNDING	7,873	7,045	14,841	575	7,723
Cash - start of year	11,164	14,797	11,089	11,089	11,198
Cash - end of year	13,194	11,164	14,797	5,971	11,089
CHANGE IN CASH	2,030	-3,633	3,708	-5,118	-108

1.	Major events 1.1. Main events of the period 1.2. Events after the reporting period 1.3. 1.4. Going-concern principle
2. 2.1.1 2.1.7	Balance sheet information 2.1 Schedule of fixed assets 2.1.2 Schedule of depreciation and provisions 2.1.3 Tangible fixed assets 2.1.4 Intangible fixed assets 2.1.5 Long-term investments 2.1.6 Receivables Stock 2.1.8 Accrual accounts 2.1.9 Cash and cash equivalents 2.2 Liabilities 2.2.1 Statement of changes in shareholders' equity 2.2 Conditional advances 2.2.3 Provisions for risks and charges 2.2.4 Debts 2.2.5 Accrual accounts
3.3 3.5	3. Information on the income statement 3.1 Operating subsidies 3.2 Research tax credit Relief of future tax debt 3.4 Leasing contracts Attendance fees
ব 4.4 4.5 4.6	Other information 4.1 Commitments received 4.2 Commitments given 4.3 Transactions with related parties Workforce as at 30 June 2020 End-of-career benefits Auditors' fees

1. Major events

Main events of the period 1.1.

During the period, the warrants exercised as part of the structured equity financing line guaranteed by Kepler Cheuvreux in March 2018 generated a net capital increase of €1.9 million (including issue premium) and the issue of 645,000 new shares.

In addition, other warrants exercised during the first half of 2020 generated a capital increase of €0.1 million (including issue premium) and the issue of 87,613 new shares.

On 26 March 2020, the Company introduced new financing, as part of an agreement with Negma Group Ltd. Consisting of a maximum amount of €8 million and an issue of share subscription warrants this financing is renewable twice by mutual agreement between Quantum Genomics and Negma Group Ltd, and will, if necessary, enable Quantum Genomics to be financed to a total maximum amount of €24 million.

As at 30 June 2020, the BSA warrants exercised under this agreement with Negma Group Ltd generated a net capital increase of €3.6 million (including issue premium) and the issue of 1,498,125 new shares.

The Company rebilled its partner Biolab for €286,000 for part of the Phase III study on difficult-to-treat and resistant hypertension conducted in Latin America. This amount was recognised in the "Transfer of Expenses" item.

On 28 January 2020, Benoit Gueugnon (formerly Head of Financial Control at the Company) was appointed Vice-President Finance. He takes over from Marc Karako, who is stepping down from his role.

Despite the current Covid-19 pandemic, discussions are continuing with our potential partners, although we cannot rule out final decision-making becoming slowed down. To protect our research programmes and guarantee their continuation, we have successfully implemented this new funding with Negma Group and secured new sources of funding. This allows us to guarantee the continuation of our studies, regardless of the long-term consequences of the current crisis, it being specified that we do not anticipate a significant delay at this stage.

During the first half of 2020, the Company did not make use of any short time working measures or defer payment of social contributions. It did however benefit from the suspension of the BPI payments.

KPMG

4

1.2. Events after the reporting period

In September 2020, our Company and Orient EuroPharma (OEP) entered into an exclusive licensing and collaboration agreement for firibastat in South-East Asia, Australia and New Zealand. Under the terms of the agreement, Orient EuroPharma (OEP) will receive exclusive marketing rights for firibastat for the treatment of hypertension in South-East Asia, Australia and New Zealand. The Company will receive upfront and milestone payments amounting to \$19 million plus sales royalties. OEP will finance the clinical part conducted in Taiwan as part of the overall phase III pivotal study conducted by the Company in difficult-to-treat and resistant hypertension.

1.3. Accounting principles, rules and methods

The annual financial statements have been drawn up in accordance with the provisions of ANC Regulation 2014-03 of 05/06/2014 amended by ANC Regulation 2016-07 of 26/12/2016.

The general accounting conventions have been applied in accordance with the principle of prudence, in accordance with the basic assumptions:

• going-concern principle,
• consistency of accounting methods from one year to the next,
• independence of financial years, in accordance with the general rules for the preparation and presentation of annual accounts.

The reference period of the financial statements is six months covering the period from 1 January to 30 June 2020.

1.4. Going-concern principle

Given its activity, the Company must be able to finance research until the marketing of pharmaceuticals or the transfer of rights on its work.

Free cash as at 30 June 2020 (€13.2 million) and the financing contract concluded with NEGMA GROUP LTD in March 2020 enable the Company to continue its programmes beyond Q3 2021.

2. Balance sheet information

2.1 Assets

2.1.1 Schedule of fixed assets

FIXED ASSETS (€)	Gross value as at 31/12/2019	Acquisitions	Transfers between line items	Disposals	Gross value as at 30/06/2020
Start-up and development costs
Other intangible fixed assets	366,283				366,283
Intangible fixed assets	366,283				366,283
Land
Buildings
General facilities, fixtures, various fittings	22,912				22,912
Other tangible fixed assets	67,320	4,742			72,062
Current tangible fixed assets
Down payments made on tangible assets
Tangible fixed assets	90,232	4,742			94,974
Equity interests
Other interests
Long-term securities	459,202	5,465,159		5,451,272	473,089
Loans and other long-term investments	37,881	370		5,573	32,678
Long-term investments	497,083	5,465,529		5,456,845	505,767
Fixed assets	953,598	5,470,271		5,456,845	967,024

2.1.2 Schedule of depreciation and provisions

DEPRECIATION & AMORTISATION (€)	YTD 31/12/2019	Allowances	Write-backs	VTD 30/06/2020
Start-up and development costs
Other intangible fixed assets	6,283			6,283
Intangible fixed assets	6,283			6,283
Buildings
General installations, fixtures, various fittings	19,361	1,326		20,687
Other tangible fixed assets	43,664	4,083		47,747
Current tangible fixed assets
Down payments made on tangible assets
Tangible fixed assets	63,025	5,409		68,434
Equity interests
Other interests
Long-term securities
Loans and other long-term investments
Long-term investments
Total	69,308	5,409		74,717

______________________________________________________________________________________________________________________________________________________________________________

Provisions for impairment (€)	YTD 31/12/2019	Allowances	Write-backs	YTD 30/06/2020
Tangible
Other long-term investments	0	5,069	0	5,069
TOTAL	0	5,069	0	5,069

2.1.3 Tangible fixed assets

Tangible fixed assets are valued at their acquisition cost, after deduction of rebates and discounts or their cost of production.

Impairment is recognised when the present value of an asset is less than the net book value.

Types of fixed assets	Method	Duration
Machinery and equipment	Straight-line	3 years
General facilities	Straight-line	10 years
Office equipment	Straight-line	3 to 5 years
Office furniture	Straight-line	10 years

2.1.4 Intangible fixed assets

Intangible fixed assets are valued at their acquisition cost, after deducting rebates and discounts or at their production cost.

Impairment is recognised when the actual value of an asset is less than its net book value.

2.1.4.1 Software

The Company owns several different software packages at a purchase value of €6,283, and fully depreciated.

2.1.4.2 Licence

The Company has an exclusive patent and know-how licence granted jointly by several French public institutions, including INSERM, at a global level.

The change in accounting standards led the Company to recognise as at 31 December 2019 this contract under assets in course of construction, in exchange for exceptional income. The cost of this contract will begin to be amortised on the day firibastat is placed on the market.

2.1.4.3 Research and development costs

These costs can be recognised as assets if they relate to clearly individualised projects with a high probability of technical success and commercial profitability.

The following conditions must therefore be fulfilled simultaneously:

6

• the technical feasibility of completing the intangible fixed asset for commissioning or sale;
• the intention to complete the intangible fixed asset and use or sell it;
• the ability to use or sell the intangible fixed asset;
• the ability of the intangible fixed asset to generate probable future economic benefits. The entity shall demonstrate, among other things, the existence of a market for the production from the intangible fixed asset or the intangible fixed asset itself, or, if it is to be used internally, its usefulness.
• the availability of adequate resources (technical, financial and other) to complete the development and use or sell the intangible fixed asset;
• and the ability to reliably measure the expenditure attributable to the intangible fixed asset during its development.

In light of the above conditions, Quantum Genomics' research and development expenses are not recorded under the assets, given the uncertainties over the technical feasibility and prospects for future economic benefits.

The amount recorded for clinical trial subcontracting expenses for the year totalled €3,792,000.

2.1.5 Long-term investments

2.1.5.1 Securities of subsidiaries and interests

The Company has no subsidiary or equity interest.

2.1.5.2 Other non-equity securities

A liquidity agreement was put in place with Aurel BGC on 10 April 2014 and transferred to Invest Securities on 13 April 2015. On 31 December 2018, the Company entered into a new liquidity contract in accordance with the AMAFI charter with Gilbert Dupont, which took effect on 1 February 2019. As a result, 59,005 shares were transferred from Invest Securities to Gilbert Dupont.

Number of shares at 30/06/2020:	105,343 shares
Purchase price:	310,564 €
Valuation of the shares at 30/06/2020:	305,495 €
Amount of liquidity at 30/06/2020:	162,525 €

Given that the price at 30 June 2020 is lower than the purchase price, a provision for impairment was recorded in the amount of €5,069.

2.1.6 Receivables

Receivables are valued at their nominal value. Impairment is applied when the inventory value is lower than the book value.

	STATEMENT OF RECEIVABLES (€)		Gross amount	Payable within 1 year	Payable in more than 1 year
	Receivables related to equity investments
Loans
	Other long-term investments		32,667		32,667
	Social security and other social welfare bodies		6,124	6,124
		Corporate income tax	859,977	859,977
FIXED ASSETS	State and other public authorities	Value added tax	600,937	600,937
		Other taxes, duties and similar payments
		Miscellaneous	19,869	19,869
	Group and partners
Miscellaneous receivables (including receivables related to repo transactions)		125,009	125,009
	Prepaid expenses		1,551,203	1,551,203
		TOTAL	3,195,786	3,163,119	32,667

The "Corporate tax" row corresponds to the research tax credit claim for the first half of 2020.

Quantum Genomics Notes to the interim financial statements as at 30 June 2020

2.1.7 Stock

2.1.7.1 Inventory

Stock category	Gross value	Depreciation	Net value
Raw material Finished products In progress	1,070,357	0	1,070,357

This concerns the stock of active ingredients for the conduct of preclinical and clinical trials.

2.1.7.2 Stocks of purchased products

Raw material stocks are valued using the FIFO method.

The purchase cost is composed of the purchase price plus the transport costs.

2.1.7.3 Depreciation methods

A provision for depreciation of inventories is made on a case-by-case basis where appropriate.

2.1.8 Accrual accounts

2.1.8.1 Prepaid expenses

Prepaid expenses consist only of ordinary expenses, the effect of which on the result is carried forward to a subsequent period.

The details as of 30 June 2020 are provided below:

GSC	€13,502
Studies and products invoiced but not yet produced	€1,064,151
Contributions	€27,858
Publications and insertions	€21,221
Fees	€7,847
Miscellaneous	€2,948
Travel	€99,942
Small appliances	€233,645
Insurance	€80,089
Total	€1,551,203

2.1.8.2

Unrealised foreign exchange gains

Expenses and income in foreign currencies are recorded for their value at the date of the transaction. Debts and receivables in foreign currency are shown in the balance sheet at their exchange rate at the end of the year.

The difference resulting from the discounting of debts and receivables in foreign currencies at the latter rate is recorded in the balance sheet as "unrealised foreign exchange gains".

Unrealised foreign exchange losses are fully subject to a provision for risks.

Descriptions	Amount in foreign ! currency	Valuation on the date of the transaction	Valuation at closing	Unrealised foreign exchange gains	Unrealised foreign exchange 05565	Provision for Foreign Exchange Loss
Trade accounts payable	\$25,829	€23,555	€23,571	C305	C289	(305
				€305	€289	C305

2.1.8.3 Accrued income

The details as of 30 June 2020 are provided below:

Descriptions	Amount (€)
State	19,869
TOTAL	19,869

2.1.9 Cash and cash equivalents

Financial investments consist of term deposits in the amount of €5,002,000. There is no need to establish a provision for depreciation as of 30 June 2020.

2.2 Liabilities

2.2.1 Statement of changes in shareholders' equity

Descriptions (€)	31/12/2019	+		30/06/2020
Capital	7,222,656	893,060		8,115,716
Capital premiums, reserves and stock warrants Carried forward	12,026,795	4,868,694	468,901	16,426,587
Finance year income 30/06/2020			5,080,966	- 5,080,966
Finance year income 31/12/2019	- 9,078,421			-9,078,421
Total	10,171,030	5,761,754	5,549,867	10,382,916

The capital was composed of 20,298,464 shares at 30 June 2020.

The general meeting relating to the decision to allocate the income of 31/12/2019 was held in July 2020, which explains why it was not allocated as of 30/06/2020.

	Number of shares	Capital increase	Issue premium	Warrants
Position at the beginning of the financial year	18,064,804	7,222,655	11,469,020	380,200
Board of directors meeting of 28/01/2020 - Capital increase - BSA 06 2010	16,675	6,667	17,347
Report on CEO decisions dated 31/01/2020 = Capital increase by exercising BSAB warrants	535,220	213,991	1,480,516
Report on CEO decisions dated 31/01/2020 - Capital Increase by exercising BSA2017 warrants	835	330	3,589
Report on CEO decisions dated 25/03/2020 - Capital increase by exercising BSAB warrants	110,000	43,980	199,795
Board of directors meeting of 26/03/2020 - Capital increase - Negma Group	2,702	1,080	3,918
Report on CEO decisions dated 30/04/2020 - Capital increase by exercising BSA 2020-T1 warrants, Notice 1 to 3	454,441	181,694	820,176
Board of directors meeting of 15/05/2020 - Capital increase - BSA 06 2010	70,113	28,033	72,930
Report on CEO decisions dated 31/05/2020 - Capital increase by exercising BSA 2020-T1 warrants, Notice 4 to 6 Report on CEO decisions dated 30/06/2020 = Capital increase by	466,761	186,620	961,508
exercising BSA 2020-T1 warrants, Notice 7 to 12	576,923	230,665	1,269,335
Report on CEO decisions dated 26/03/2020 - Issue of 5,000,000 BSA2020-T1 warrants				5,000
Allocation of issue costs			434,322
Variation during the period	2,233,660	893,060	4,394,792	5,000
End-of-period position before grouping	20,298,464	8,115,715	15,863,812	385,200

Warrants (*)

Warrants (bons de souscriptions d'actions - BSA)	Number of warrants subscribed	Number of warrants exercised since subscription	Number of unexercised warrants	Number of new shares attached to unexercised warrants	Period of validity
BSAD6-10 award	5,766,967	5,766,967			Expired
BSAD6-12 award	1,120,000	444,988	675,012	37,501	10 years
BSA11-13 award	97,551		97,551	97,551	10 years
BSA11-13-2 award	298,542		298,542	298,542	10 years
BSA2017 award	2,191,698	161,292			Expired
BSA2019 award	39,877		39,877	39,877	3 years
	9,514,635	6,373,247	1,110,982	473,471

(*) The Company also notes that from 5 March 2018, it had an equity financing line of €24 million over three years, structured and guaranteed by Kepler Cheuvreux. This line operates at the Company's discretion by exercising warrants with a price that is not fixed but varies according to the change in the share price. Therefore, the number of potentially exercisable warrants cannot be determined, as this is linked to the share price and the possibility of remaining financing stated in euros.

During the first half of 2020, 645,220 shares were issued in this context in the amount of €1.9 million. The Company thus settled its equity financing line with Kepler Cheuvreux, which enabled it to raise €24 million from March 2018.

In addition, the Company structured new financing with Negma Group Ltd on 26 March 2020. This financing of €8 million, renewable twice by mutual agreement between the two parties, corresponds to a loan repayable in the form of an exercise of warrants. The exercise price of the warrants is not fixed but variable depending on the change in the stock market price. Therefore, the number of potentially exercisable warrants cannot be determined, as this is linked to the share price and the possibility of remaining financing stated in euros.

As of 30 June 2020, 1,498,125 new shares were issued in this context and €6 million were collected (3 tranches of €2 million). The contract operates in the form of a loan repayable through the issuance of shares. The issue of shares as of 30 June 2020 made it possible to repay €3.6 million on the €6 million collected. There remains a debt of €2.3 million payable to Negma.

All of the warrants subscribed (excluding the equity financing line with Negma Group Ltd) as at 30 June 2020 give the right to purchase 473,471 new shares.

the BSA200 warrants enabled 0.25 new shares to be purchased at a price of €0.3996 per share since 13 May 2019; the BSA2009 warrants have expired.

KPMG

• the BSA06 warrants enabled 0.055 new shares to be purchased for €1.44 per share; these have all been purchased.
• the BSA06-12 warrants enable 0.055 new shares to be purchased for €3.24 per share.
• the BSA11-2013 warrants enable 1 new share to be purchased for €6.12 per share.
• the BSA11-2013-2 enable 1 new share to be purchased for €6.30 per share.
• the BSAR2016 warrants enabled 0.5 new shares to be purchased for €7.75 per share. Since 16 September 2018, the BSAR2016 warrants have expired.
• the BSA2017 warrants enabled 0.75 new shares to be for €3.75 per share; the BSA2017 warrants have expired.
• the BSA2019 warrants enable 1 new share to be purchased for €5.06 per share.

Bonus share award (attribution d'actions gratuites - AGA)	Number of bonus shares awarded as at 30/06/2020	% capital	Unavailable reserve (€)	Duration of vesting period	Deadline
AGA 07/2019-1	183,828	1.02%	73,498	12 months	19/07/2020
AGA 07/2019-2	220,675	1.22%	88,230	24 months	19/07/2021
AGA 12/2019	39,633	0.22%	15,846	12 months	10/12/2020
	444,136	2.46%	177,574

Bonus share awards

The shareholders' meeting of 22 December 2015 authorised the Board of Directors for a period of 38 months to proceed with the award of bonus shares up to a limit of 10% of the share capital on the day of the decision of the Board of Directors.

The Board of Directors' meetings of 2 March 2016 and 8 July 2016 adopt the bonus share award (attribution d'actions gratuites - AGA) plan for salaried employees and corporate officers of the group.

The shares awarded will be issued by the Company upon expiry of a vesting period.

The details of the definitive award and completion of the free shares are summarised in the table below.

	Shares	Agreement Date / Completion date	Maturity
AGA 03 2016	244,850.00	02/03/2016	02/03/2017
AGA 2016 - 07 - 1	251,710.00	08/07/2016	08/03/2018
AGA 2016 - 07 - 2	251,710.00	08/07/2016	08/03/2019
AGA 05-2017-1	10,000.00	04/05/2017	04/05/2018
AGA 05-2017-2	10,000.00	04/05/2017	04/05/2019
AGA 08 2017 1	3,776.00	22/08/2017	22/08/2018
AGA 08 2017 2	3.776.00	22/08/2017	22/08/2019
AGA 04 2018	15,000.00	12/04/2018	12/04/2019
AGA 07 2019 1	183,828.00	19/07/2019	19/07/2020
AGA 07 2019 2	220,675.00	19/07/2019	19/07/2021
AGA 12 2019	39,633.00	19/07/2019	19/07/2021

The accounts show:

• · A conditional advance granted by OSEO (Bpifrance) in 2008 and whose characteristics are as follows:
• Subject: "Preclinical development of a treatment for arterial hypertension, by inhibition of aminopeptidase A"
• Total amount of aid: €740,000

The Company had already repaid a fixed sum of €212,500 as of 30 June 2017. With the success having been recognised, it must repay the remaining sum, i.e. €527,500.

At 31/12/2018, a total of €400,000 was paid in accordance with the schedule.

During 2019, £267,500 was repaid, leaving the sum of €72,500 to be repaid, with the final due date on 31 March 2020.

As at 30/06/2020, the same amount remains in account, as owing to Covid-19, the payment was not drawn, and was carried over to the second half of 2020.

In addition, the Company is committed to ensuring that the maximum repayment annuity corresponds to 49.75% of the revenue generated by the project in the previous calendar year, and the additional amounts thus paid will be deducted first and foremost from the last due date for OSEO (Bpifrance) or if necessary on the second to last date.

• · A conditional advance granted by Bpifrance in 2014 and whose characteristics are as follows:
• Subject: "Innovation assistance for the development and testing of the clinical efficacy of several combinations of QGC001 products with hypertensive agents".
• Total amount of aid: €260,000
• Terms of payment of the aid: .
• · After signing the contract: €200,000 (September 2014)
• O Upon completion of the work: €60,000 (paid in April 2016)

Quantum Genomics

Notes to the interim financial statements as at 30 June 2020

• Repayment schedule:

If successful, the advance will be reimbursed in the amount of €260,000, by quarterly instalments according to the following schedule:

Year	Repayment
2017	€15,000
2018	€35,000
2019	€70,000
2020	€110,000
2021	€30,000
Total	€260,000

At 31 December 2017, two payments of €5,000 were drawn, in other words €10,000 versus €15,000 as anticipated according to the schedule. The remaining €5,000 was drawn at the beginning of the 2018 financial year.

The payment of €35,000 scheduled for 2018 was paid in full over the last financial year. The balance of the advance on 31/12/2018 was therefore €210,000.

During 2019, the sum of €70,000 was paid, with the sum of €140,000 remaining to be paid by March 2021.

As at 30/06/2020, the same amount remains in account, as owing to Covid-19, the payments were not drawn, and were carried over to the second half of 2020.

In addition, the Company has committed that the maximum repayment annuity will correspond to 30% of the revenue generated by the project in the previous calendar year and that the additional amounts thus paid will be deducted in priority from the last due date for Bpifrance or if necessary on the second to last date.

• . A conditional advance granted by Bpifrance on 28/09/2016 and whose characteristics are as follows:
  • Subject: "Innovation assistance for the clinical development of QGC001 products for heart failure and phase lla study"
  • Total amount of aid: €800,000
  • Terms of payment of the aid:
• · After signing the contract: €480,000 (September 2016)
• O Upon completion of the work: €320,000

- Repayment schedule:

If successful, the advance will be reimbursed in the amount of €800,000, by quarterly instalments according to the following schedule:

Year	Repayment
2019	€120,000
2020	€160,000
2021	€160,000
2022	€160,000
2023	€160,000
2024	€40,000
Total	€800,000

Whatever the outcome of the study, the lump sum reimbursement will be at least €400,000 according to the same schedule that will end on 30 June 2021.

Quantum received the rest of the aid in 2020 in the amount of €230,013. Due to Covid-19, no schedule has yet been received.

2.2.3 Provisions for risks and charges

Nature of Provisions	Amount at the beginning of the year	Increase: Allowances for the year	Decrease: Resumption of the financial year	Amount at the end of the financial year
Provisions for foreign exchange losses	83	305	83	305
Other provisions for charges	294,152		41,773	252,379
TOTAL	294,235	305	41,856	252,684

Other provisions for charges correspond to the specific employer contribution on bonus share allocations.

As at 31/12/2019, a new provision for charges of €294,000 was provisioned following the new allocations of bonus shares. This provision was adjusted as at 30/06/2020 following the application of the new share price at 30/06/2020.

Quantum Genomics Notes to the interim financial statements as at 30 June 2020

2.2.4 Debts

2.2.4.1		Classification by due date
---------	--	----------------------------	--	--	--

	STATEMENT OF DEBTS (C)	Gross amount	Up to 1 year	Between 1 and 5 years +	More than 5 years
Other bond loans
Loans and debts with credit institutions	1 year maximum originally	1,891	1,891
	More than 1 year originally
Loans and other financial debts
Trade accounts payable		4,134,203	4,134,203
Personnel and related accounts payable		234,834	234,834
	Social security and other social welfare bodies	180,886	180,886
State and other public authorities	Corporate income tax
	Value added tax	8,515	8,515
	Guaranteed bonds
	Other taxes, duties and similar	17,406	17,406
Group and partners		2,350,002	2,350,002
Other debts (including those relating to repurchase transactions)		60,619	60,619
	TOTAL	6,988,357	6,988,357

The Group and partners line of €2,350,002 relating to Quantum's debt to Negma Group. As at 30 June 2020, 1,498,125 new shares were issued under the Negma financing framework and €6 million were collected (3 tranches of €2 million). The contract operates in the form of a loan repayable through the issuance of shares. The issue of shares as of 30 June 2020 made it possible to repay €3.6 million on the €6 million collected. There remains a debt of €2.3 million payable to Negma.

2.2.4.2 Financial debts

None

2.2.4.3 Charges to pay

Descriptions	Amount (€)
VACATION/LEAVE TO PAY
Provisional leave	63,109
Provisioned social charges	28,762
ACCRUED INTEREST
Banks	1,891
OTHER CHARGES
Premiums to pay	111,457
Social charges on premiums to be paid	52,016
Invoices to be received	1,189,969
Expenses on attendance fees	19,961
Other tax charges	7,663
TOTAL	1,474,828

2.2.5 Accrual accounts

2.2.5.1 Composition of prepaid income

As of 30 June 2020, there is no prepaid income.

2.2.5.2 Exchange rate differences reported as liabilities

The exchange rate differences reported as liabilities reflect the impact of the conversion of debts into foreign currencies (see 2.1.8.2)

KPMG

Information on the income statement 3.

3.1 Operating subsidies

Subsidies are recognised in the income statement according to the actual progress of the projects for which they are granted.

The actual progress of the projects is assessed taking into account, on the one hand, the time spent by the employees and on the other hand the subcontracting costs assigned to the projects and covered by the grant.

No new operating subsidy was collected by the Company during the period.

3.2 Research tax credit

The research tax credit generated in the first half of 2020 is €859,977. It has been calculated taking. into account the following elements:

• Compensation and corresponding compulsory social security contributions allocated to employees assigned to research taking into account the time actually spent on research activities. For the employee with the status of "young doctor", this remuneration has been retained according to the text,
• Operating costs, the amount of which is set at a flat rate of 43% of staff costs (200% for "young doctors") plus 75% of depreciation expenses related to fixed assets allocated to research activities,
• Subcontracting expenses billed as of 30 June 2020 by the approved "Research Tax Credit" organisations. For public bodies, the amounts have been doubled. For the first half of 2020, subcontracting expenses (€3.8m) exceeded the authorised ceiling. The capped amount retained is €2.3 million.
• Patent expenses billed as of 30 June 2020,
• Any subsidies paid have been deducted.

3.3 Relief of future tax debt

After taking into account the income as of 30 June 2020, the Company has loss carry-forwards of €66,114,355.

3.4 Leasing contracts

There is no current lease contract.

3.5 Attendance fees

The expenditure as at 30 June 2020 related to attendance fees is €61,500, excluding social security plans.

Quantum Genomics Notes to the interim financial statements as at 30 June 2020

Other information 4.

Commitments received 4.1

None

4.2 Commitments given

None

4.3 Transactions with related parties

No information is given in respect of transactions between related parties to the extent that such transactions were entered into under normal market conditions.

4.4 Workforce as at 30 June 2020

	Salaried personnel
Executives	10
Non-executives	1
Total	11

4.5 End-of-career benefits

Given the workforce of the Company and their seniority, the end-of-career benefits were not evaluated because they were deemed to be insignificant.

4.6 Auditors' fees

Statutory auditors' fees provisioned as at 30/06/2020	Amount (€)
As part of the statutory audit mission	11,000
For guidance and services in connection with services other than certification of accounts	7.035
Total	18,035

STATUTORY AUDITOR REPORT

QUANTUM GENOMICS

Société Anonyme

33, rue Marbeuf 75008 Paris

Limited review auditor's report on financial statements on June 30, 2020

For the period from January 1, 2020 to June 30, 2020

This is a free translation into English of the Limited review auditors' report issued in French and is provided solely for the convenience of English speaking users. The Limited review auditors' report includes information specifically required by French law in such reports, whether modified or not. This report should be read in conjunction with, and construed in accordance with, French law and professional auditing standards applicable in France.

To the Chief Executive Officer,

In our capacity as Statutory Auditor of Quantum Genomics and in response to your request, we have conducted a limited review of Quantum Genomics' half-year financial statements for the period from January 1 to June 30, 2020 as attached to this report.

These half-year financial statements have been drawn up under the responsibility of the Board of Directors. It is our responsibility, on the basis of our limited review, to express our conclusion on these financial statements.

QUANTUM GENOMICS - Page 2/2

We conducted our review in accordance with professional standards applicable in France. A limited review consists primarily of interviewing members of the management in charge of accounting and financial matters and implementing analytical procedures. This work is less extensive than that required for an audit carried out in accordance with professional standards applicable in France. As a result, the assurance that the accounts, taken as a whole, do not contain any material misstatements in a limited review is a moderate assurance that is less than that obtained in the course of an audit.

On the basis of our review, we have not identified any significant anomalies, in light of French accounting rules and principles, the fact that the financial statements present fairly the company's assets and financial position as at June 30, 2020, and the results of its operations for the period.

This report is governed by French law. The French courts have exclusive jurisdiction in relation to any claim, difference or dispute which may arise out of or in connection with our engagement letter or this attestation.

Paris-La-Défense, October 1st, 2020

The statutory auditor

Deloitte & Associés

Pierre-François ALLIOUX