Read the Registration Document - Guerbet

Note 22 – Research and development expendituresThe following amounts were recognised under expenses:2012 2011Direct expenses 31,338 35,627Indirect expenses 7,914 6,804Total 39,252 42,431Direct expenses include supplies used in operations, external charges, personnel expenses and allowancesfor depreciation.Note 23 – Investment grantsThe following investment grants were recognised under income:Account heading Nature 2012 2011Other revenue from ordinary activities Innovation grant 1,499 2,423Other revenue from ordinary activities Job creation subsidies 199 125Other revenue from ordinary activities Misc. grants 60 13Other operating income Investment grants - 74Total 1,758 2,635In December 2008, the request for aid submitted to OSEO innovation agency for the Franco-Germanresearch project, Iseult, was approved by the European commission. The aid agreement provides forfinancing for one half of the expenses incurred including 39% in the form of repayable advances and 61% inthe form of grants.At 31 December 2012, the following items were recognised in connection with this aid agreement:In the balance sheet:- €2.3 million in grants received prior to the signature of the agreement in December 2008 andrecognised under "Other current financial liabilities";- €1.8 million in repayable advances received from 2008 to 2011 and recognised under "Non-currentfinancial liabilities".- €1.4 million in grants receivable for research expenditures incurred by Guerbet from 1 July 2011 to30 June 2012. These grants are recognised under "Other current financial assets".In the income statement:- €1.4 million recognised under "Other revenue from ordinary activities" for this grant receivable;A €1.6 million repayable advance to be received in 2013 by Guerbet for research expenditures incurredfrom July 2011 to June 2012. This item was not recognised in the financial statements at 31 December2012.In 2011, Guerbet received and recognised financing of €2.5 million including €2.4 million in grants and€0.1 million in repayable advances for research expenditures incurred by Guerbet from July 2010 to June2011.The amount of contingent income that remains to be received for research expenditures incurred in the2012 second half but not yet approved by Oseo at the end of the reporting period and not recognised in theincome statement would amount to €503,000 in grants. To this, €325,000 in repayable advances should beadded.An amendment is in the process of being executed with Oseo that provides for a two-year extension of theterm of the project and a modification of the terms for financial returns in the eventuality a product is put onthe market on completion of the project.105