Financial Income and Expenses

12 Months Ended

Dec. 31, 2020

Financial Income And Expenses [Abstract]

Financial Income and Expenses

21. FINANCIAL INCOME AND EXPENSES

Financial income and expenses	Year ended
(in € thousands)	2018/12/31			2019/12/31			2020/12/31
Financial income
Interest income		202			2,626			1,442
Foreign exchange gain		101			2,272			4,983
Other financial income		425			324			119
TOTAL - Financial income		728			5,221			6,544
Financial expenses
Interest expenses		(10,955	)		(11,289	)		(11,643	)
Interest expenses for leases		(21	)		(148	)		(134	)
Foreign exchange losses		(127	)		(1,657	)		(13,508	)
Other financial expenses		(14	)		(17	)		(11	)
TOTAL - Financial expenses		(11,118	)		(13,110	)		(25,296	)
FINANCIAL GAIN (LOSS)		(10,391	)		(7,889	)		(18,752	)

The financial expenses are related to the interest of the OCEANE and they mainly relate to the payment of coupons at the rate of 3.5% and the amortization of the discount of the bond debt at the effective interest rate of 7.2%. to accrete the bond debt up to the amount that will be repaid (or converted) at maturity, recognizing a theoretical annual interest accrual as a result of the accretion on the period of an amount equivalent to the equity component at an effective interest rate.

The interest income recognized are almost exclusively related to investments in US dollars; the income generated has however been significantly reduced in 2020.

The financial result related to currency exchange is a loss of €8,525 in 2020 notably due to the difference in currency exchange recognized on the cash investments in US dollars, as GENFIT has decided to keep some of its cash in US dollars. See Note 6 “Cash and cash equivalents”. These cash investments in US dollars are to be used to pay directly expenses in US dollars (natural currency hedge).