GeNeuro : Half yearly financial reports and audit reports/limited reviews / Half yearly financial report

A Swiss joint stock company (société anonyme) with share capital of 1,249,951.40 Swiss francs

Registered office: 3 chemin du Pré-Fleuri - 1228 Plan-Les-Ouates - Geneva - Switzerland

CHE-112.754.833 Commercial register (Registre du commerce) of Geneva

HALF-YEAR FINANCIAL REPORT

AT JUNE 30, 2023

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CONTENTS

3. Condensed consolidated financial statements prepared in accordance with IFRS standards

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GENERAL REMARKS

Definitions

In this half-year financial report, and unless otherwise indicated:

• The "Company", or "GeNeuro", refers to the company GeNeuro SA, whose registered office is located at 3, chemin du Pré-Fleuri - CH-1228Plan-les-Ouates - Geneva - Switzerland and which is registered in the Commercial register (Registre du commerce) of Geneva under number CHE-112.754.833.
• The "Group" refers to GeNeuro SA and its subsidiary GeNeuro Innovation SAS;
• "Financial report" refers to this half-year financial report at June 30, 2023;
• "Universal Registration Document" refers to the 2022 Universal Registration Document filed with the French Financial Markets Authority (Autorité des marchés financiers) on April 28, 2023.

GENEURO

GeNeuro's mission is to develop safe and effective treatments against neurological disorders and autoimmune diseases, such as multiple sclerosis ("MS"), amyotrophic lateral sclerosis ("ALS") ) and the severe consequences of COVID-19(Long-COVID), by neutralizing causal factors encoded by human endogenous retroviruses ("HERV"), which represent 8% of the human DNA. This represents a novel therapeutic approach pioneered by GeNeuro since 2006, based on 15 years of R&D at Institut Mérieux and INSERM.

GeNeuro's lead therapeutic candidate, temelimab, is a humanized monoclonal antibody that neutralizes a pathogenic HERV protein of the W family called W-ENV that has been identified as a potential key factor in the onset and development of autoimmune diseases such as MS, where it has completed in 2022 its final Phase II clinical trial with an excellent tolerability and safety, or such as Long-COVID where W-ENV has been observed in more than 25% of patients with persistent syndromes after having had COVID.

With the support of a co-funding grant from the Swiss Federal Office for Public Health (FOPH) of 6.7 million Swiss francs (€6.8 million), GeNeuro has launched at the end of 2022 a Phase 2 clinical trial that is evaluating the clinical efficacy of a six-month treatment with temelimab on the improvement of cognitive impairment and/or fatigue in post-COVID patients who exhibit severe neurological and psychiatric ("neuropsychiatric") symptoms and who are positive for the presence of W-ENV protein in their blood. These recent discoveries open a possible clinical path to provide a therapeutic solution to Long-COVID patients.

Based in Geneva, Switzerland and with an R&D facility in Lyon, France, GeNeuro holds the rights to 18 patent families that protect its technology.

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1. CERTIFICATION OF THE PERSON RESPONSIBLE FOR THE HALF-YEAR FINANCIAL REPORT

1.1 Person responsible for the half-year financial report

Jesús MARTIN-GARCIA, Chief Executive Officer

1.2 Certification of the person responsible

(Art. 222-3 - 4° of the AMF General Regulations)

"I certify that, to the best of my knowledge, the condensed consolidated interim financial statements have been prepared in accordance with applicable accounting standards and give a fair view of assets, financial position and result of the Company and all companies included in the scope of consolidation, and the half-year business report provides an accurate picture of the significant events during the first six months of the financial year, of their impact on the half-year financial statements, of the major transactions with related parties as well as a description of the main risks and uncertainties for the remaining six months of the financial year".

Plan-les-Ouates, September 29, 2023

Jesús MARTIN-GARCIA, Chief Executive Officer

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2. BUSINESS REPORT AT JUNE 30, 2023

2.1 Significant events in the first half of 2023

On May 3, 2023, the Company announced the publication in the leading open science journal iScience from "Cell Press" of the new results from the collaboration between GeNeuro and the CIRI, Centre International de Recherche en Infectiologie, in Lyon, France, on the link between SARS-CoV-2 and the pathogenic HERV-W proinflammatory envelope protein (W-ENV).

On April 13, 2023, GeNeuro reported on its first quarter financial situation, announcing a net cash position of €9.5 million.

On March 7, 2023, GeNeuro announced the signature of a credit agreement for a total amount of up to EUR 25 million with the European Investment Bank ("EIB"), supported by the InvestEU programme (the "EIB Credit Facility Agreement"). The first tranche of EUR 7 million, which was immediately available and was drawn in March 2023, is intended to support the Phase 2 clinical trial in long-COVID. The other tranches of EUR10 million and EUR8 million are intended for the preparation and launch of Phase 3 respectively.

2.2 Activities and result of the Group

Research and development

Key aspects of the Company's R&D activities are summarized above under "Significant events in the first half of 2023".

Results

2.2.1 Income

The Group recognized no income during the first half of 2023 or during 2022.

2.2.2 Research and development expenses

Research and development expenses of the Group increased 30% compared with the first half of 2022, from K€ 4,651 to K€ 6,035. This is primarily due to the fact that R&D activities were limited in the first half of 2022, due to the completion in March 2022 of the Company's single -center Phase 2 in MS, whereas R&A activities were much higher during the first half of 2023 due to the launch in the end of 2022 of the Company's new GNC-501multi-center Phase 2 clinical trial treating long-COVID patients with severe neurological and psychiatric symptoms with temelimab. As a result, expenses for studies and research in the first half of the year increased from K€ 3,236 in 2022 to K€ 4,497 in 2023. R&D personnel expenses increased slightly from K€ 1,023 to K€ 1,089 while professional fees decreased from K€ 117 to K€ 84. Intellectual property costs increased from K€ 144 to K€ 163, reflecting the Company's patent filing activities related to HERV-W and HERV-K.

As the bulk of the R&D activities were conducted by the Group's Swiss parent and were accordingly not eligible for French research tax credits, subsidies decreased from K€ 1,249 in the first half of 2022 to K€ 719 during the first half of 2023. Subsidies for 1H 2023 include a favorable K€ 140 one-time impact from a debt cancellation related to the Bpifrance reimbursable advance received in 2011.

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