What changed in this filing

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Item 1. Financial Statements

2022-05-13 compared with 2021-11-15 · 390 added, 555 removed, 230 unchanged (80% of the section changed)

3 unchanged sentences

Balance Sheets

thousands, except for share and per share data)

September 30, 2021

December 31, 2020

thousands, except for share and per share amounts)

and cash equivalents

receivable from New Jersey net operating loss

expenses and other current assets

held for sale

current assets

Cash and cash equivalents

Marketable securities

Funds receivable from New Jersey net operating loss

Accounts receivable

Prepaid expenses and other current assets

Total current assets

Property and equipment, net

Right of use asset, net

Patent and trademark rights, net

Marketable securities, long term

LIABILITIES AND STOCKHOLDERS’ EQUITY

and equipment, net

of use asset, net

and trademark rights, net

AND STOCKHOLDERS’ EQUITY

portion of operating lease liability

current liabilities

Accounts payable

Accrued expenses

Current portion of operating lease liability

Current portion of financing obligation

Total current liabilities

Long-term liabilities:

Operating lease liability

Financing obligation arising from sale leaseback transaction (Note 13)

Redeemable warrants

Commitments and contingencies (Notes 11, 12, 13, and 14)

lease liability

and contingencies (Notes 12, 13 and 14)

Stockholders’

B Convertible Preferred Stock, stated value $ 1,000 per share, 715 issued and outstanding

Common Stock, par

value $ 0.001 per share, authorized 350,000,000 shares;

47,994,672 issued and outstanding

paid-in capital

stockholders’ equity

Series B Convertible Preferred Stock, stated value $ 1,000 per share, 725 shares designated, 732 shares issued and outstanding

Common Stock, par value $ 0.001 per share, authorized 350,000,000 shares:

issued and outstanding 47,848,622 , and 42,154,371 , respectively

Additional paid-in capital

Accumulated other comprehensive loss

Accumulated deficit

Total stockholders’ equity

Total liabilities and stockholders’ equity

liabilities and stockholders’ equity

accompanying notes to consolidated financial statements.

1 unchanged sentence

AND SUBSIDIARIES

Statement of Operations and Comprehensive Loss

Statements of Comprehensive Loss

thousands, except share and per share data)

Three months ended September 30,

Nine months ended September 30,

Clinical treatment programs - US

Clinical treatment programs - Europe

Total Revenues

months ended March 31,

treatment programs – US

treatment programs – Europe

and Expenses:

and development

and administrative

Costs and Expenses

Production costs

Research and development

General and administrative

Total Costs and Expenses

Operating loss

Interest and other income, net

Interest expense and other finance costs

Extinguishment of financing obligation and note payable

Gain on sale of fixed assets

Redeemable warrants valuation adjustment

Gain from sale of Income tax operating losses

Other comprehensive (loss), net of tax

Reclassification adjustment for realized investment loss

Change in unrealized loss on marketable securities available for sale

Comprehensive loss

Basic and diluted loss per share

Weighted average shares outstanding basic and diluted

accompanying notes to consolidated financial statements.

IMMUNOTECH INC.

AND SUBSIDIARIES

Statement of Changes in Stockholders’ Equity

the Nine Months Ended September 30, 2021

thousands except share data)

Series B Preferred

Accumulated other Comprehensive

Income (Loss)

Stockholders’

Balance December 31, 2020

$ ( 341,974 )

Common stock issuances, net of costs

Warrant modification

Equity-based compensation

Shares issued to pay accounts

payable,shares

Series B preferred shares converted to common shares

Comprehensive loss

Balance March 31, 2021

$ ( 345,553 )

Equity-based compensation

on investments

and other income

expense and other finance costs

warrants valuation adjustment

from sale of income tax operating losses

comprehensive loss

Balance June 30, 2021

$ ( 351,429 )

Common stock issuances, net of costs

Equity-based compensation

Reclassification

adjustment for realized investment loss

in unrealized loss on marketable securities available for sale

comprehensive loss

Balance September 30, 2021

$ ( 355,255 )

and diluted loss per share

average shares outstanding basic and diluted

accompanying notes to consolidated financial statements.

1 unchanged sentence

AND SUBSIDIARIES

Statement of Changes in Stockholders’ Equity

the Nine Months Ended September 30, 2020

Statements of Changes in Stockholders’ Equity

thousands except share data)

Accumulated other

Comprehensive

Income (Loss)

Stockholders’

Balance December 31, 2019

Stock .001 Par Value

other Comprehensive Income (Loss)

Stockholders’ Equity

December 31, 2021

$ ( 361,101 )

Common stock issuance, net of costs

Warrant modification

Equity-based compensation

Shares issued to pay accounts payable

Series B preferred shares converted to common shares

Shares issued for:

based compensation

comprehensive loss

Balance March 31, 2020

March 31, 2022

$ ( 364,921 )

Common stock issuance, net of costs

Equity-based compensation

Series B preferred shares converted to common shares

Comprehensive loss

Balance June 30, 2020

B Preferred Shares

Stock .001 Par Value

Paid-in Capital

other Comprehensive Income (Loss)

Stockholders’ Equity

December 31, 2020

$ ( 341,974 )

Common stock issuance, net of costs

Equity-based compensation

Shares issued to pay accounts payable

Series B preferred shares converted to common shares

Shares issued for:

Stock issuance, net of costs

B preferred shares converted to Common shares

comprehensive loss

Balance September 30, 2020

March 31, 2021

$ ( 345,553 )

3 unchanged sentences

Statements of Cash Flows

the Nine Months Ended September 30, 2021 and 2020

Cash flows from operating activities:

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation of property and equipment

Redeemable warrants valuation adjustment

Warrant modification

Extinguishment of financing obligation and note payable

Amortization of patent, trademark rights

Changes in ROU assets

Gain on sale of property and equipment

Gain from sale of income tax operating losses

Equity-based compensation

Realized (loss) gain on sale of marketable securities

Amortization of finance and debt issuance costs

Change in assets and liabilities:

Accounts receivable

Funds Receivable from New Jersey net operating loss

Prepaid expenses and other current assets and other non-current assets

Lease liability

Accounts payable

Accrued interest expense

Accrued expenses

Net cash used in operating activities

Cash flows from investing activities:

Proceeds from sale of marketable securities

Purchase of marketable securities

Purchase of property and equipment

Proceeds from sale of property and equipment

Purchase of patent and trademark rights

Net cash used in investing activities

Cash flows from financing activities:

Payment on note payable

Payment of financing obligation

Financing obligation payments

Proceeds from sale of stock, net of issuance costs

Net cash provided by financing activities

Net (decrease) increase in cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

Supplemental disclosures of non-cash investing and financing cash flow information:

Stock issued to settle accounts payable

Unrealized loss on marketable securities

Conversion of Series B preferred

the Three Months Ended March 31, 2022 and 2021

flows from operating activities:

to reconcile net loss to net cash used in operating activities:

of property and equipment

warrants valuation adjustment

of patent, trademark rights

in ROU assets

on available for sale marketable securities

from sale of income tax operating losses

loss on marketable securities

of finance and debt issuance costs

in assets and liabilities:

expenses and other current assets and other non current assets

cash used in operating activities

flows from investing activities:

from sale of marketable securities

of marketable securities

of patent and trademark rights

cash (used in) provided by investing activities

flows from financing activities:

obligation payments

from sale of stock, net of issuance costs

cash provided by financing activities

(decrease) increase in cash and cash equivalents

and cash equivalents at beginning of period

and cash equivalents at end of period

disclosures of non-cash investing and financing cash flow information:

of Series B preferred

accompanying notes to consolidated financial statements.

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ImmunoTech Inc.

and its subsidiaries (collectively, “AIM”, “Company”, “we” or “us”) are

an immuno-pharma company headquartered in Ocala, Florida, and focused on the research and development of therapeutics to treat multiple

types of cancers, viral diseases and immune-deficiency disorders.

We have established a strong foundation of laboratory, pre-clinical

and clinical data with respect to the development of nucleic acids and natural interferon to enhance the natural antiviral defense system

of the human body, and to aid the development of therapeutic products for the treatment of certain cancers and chronic diseases.

flagship products are Ampligen (rintatolimod), a first-in-class drug of large macromolecular RNA (ribonucleic acid) molecules, and Alferon

N Injection (Interferon Alfa-N3).

and its subsidiaries (collectively, “AIM”, “the Company”,) are an immuno-pharma company headquartered

in Ocala, Florida, and focused on the research and development of therapeutics to treat multiple types of cancers, viral diseases and

immune-deficiency disorders.

The Company has established a strong foundation of laboratory, pre-clinical and clinical data with respect

to the development of nucleic acids and natural interferon to enhance the natural antiviral defense system of the human body, and to

aid the development of therapeutic products for the treatment of certain cancers and chronic diseases.

flagship products are Ampligen® (rintatolimod), a first-in-class drug of large macromolecular RNA (ribonucleic acid) molecules, and

Alferon N Injection® (Interferon alfa-n3).

Ampligen has not been approved by the FDA or marketed in the United States.

Ampligen is approved

for commercial sale in the Argentine Republic for the treatment of severe Chronic Fatigue Syndrome (“CFS”).

Company’s primary present business focus involves Ampligen.

Ampligen is a double-stranded RNA (“dsRNA”) molecule being

developed for globally important cancers, viral diseases and disorders of the immune system.

currently is proceeding primarily in three areas:

plus Standard of Care (“SOC”) to treat pancreatic cancer patients, and in other cancers, as a potential therapeutic that

modifies the tumor microenvironment with the goal of increasing anti-tumor responses to check point inhibitors and with SOC.

Ampligen’s antiviral activities and potential use as a prophylactic or treatment for existing viruses, mutations thereof or

as a treatment for myalgic encephalomyelitis/chronic fatigue syndrome (“ME/CFS”) and what we refer to as Post-COVID-19

Cognitive Dysfunction (“PCCD”).

some two years after COVID-19 first appeared, the world has a number of vaccines and some promising therapeutics.

AIM’s quest to

prove the antiviral activities of Ampligen continues.

If Ampligen has the broad-spectrum antiviral properties that the Company believes

that it has, it could be a very valuable tool in treating variants of existing viral diseases, including COVID-19, or novel ones that

arise in the future.

Unlike most developing therapeutics which attack the virus, Ampligen works differently.

AIM believes that it activates

antiviral immune system pathways that fight not just a particular virus or viral variant, but other similar viruses as well.

N Injection is approved in Argentina for a category of sexually transmitted disease infections and patients that are not responsive or

are intolerant to recombinant interferon.

Alferon is the only natural-source, multi-species alpha interferon currently approved for sale

in the United States for the intralesional treatment of refractory (i.e., resistant to other treatment) or recurring external condylomata

acuminata/genital warts in patients 18 years of age or older.

Certain types of human papilloma viruses cause genital warts.

has approval from ANMAT for the treatment of refractory patients that failed or were intolerant to treatment with recombinant interferon

in Argentina.

Company owns and operates a 30,000 sq.

facility at 783 Jersey Ave, New Brunswick, N.J., where it conducts testing and has produced

limited quantities of active pharmaceutical ingredients (“API”) for its products.

AIM is in the planning stages of updating

the manufacturing and laboratory suites with state-of-the-art, mobile-ready equipment that can be used either there or in future alternate

While the Company believes it has sufficient API to meet its current needs, it is also continually exploring new opportunities

to maximize its ability to fulfill future needs.

AIM’s current and active production plan is to shift to the utilization of Contract

Manufacturing Organizations (“CMO”), while maintaining on-site teams for QC, QA, R&D, bench and small-batch manufacturing.

May 13, 2021, the Company exercised its option to re-purchase the New Brunswick facility, pursuant to the terms of the March 16, 2018,

sale and lease-back agreement.

Subsequently, the Company sold certain equipment and machinery that it determined to be obsolete and

no longer needed for current or future manufacturing (See Note 13:

Financing Obligation Arising from Sale Leaseback Transaction).

is approved for commercial sale in the Argentine Republic for the treatment of severe Chronic Fatigue Syndrome (“CFS”).

primary present business focus involves Ampligen.

Ampligen represents a dsRNA being developed for globally important cancers, viral diseases

and disorders of the immune system.

Company is currently proceeding primarily in four areas:

randomized controlled study to evaluate efficacy and safety of Ampligen compared to a control group to treat locally advanced pancreatic

cancer patients.

Ampligen in other cancers, as a potential therapy that modifies the tumor microenvironment with the goal of increasing anti-tumor

responses to check point inhibitors.

Ampligen’s antiviral activities and potential use as a prophylactic or treatment for existing viruses, new viruses and mutated

viruses thereof.

as a treatment for myalgic encephalomyelitis/chronic fatigue syndrome (“ME/CFS”) and fatigue and/or difficulty thinking/concentrating

as the predominate Post-COVID conditions (as referenced on CDC website Sept.

Company is prioritizing activities in an order related to the stage of development, with those clinical activities such as pancreatic

cancer, ME/CFS and Post-COVID conditions having priority over antiviral experimentation.

The Company intends that priority clinical work

be conducted in FDA or EMA authorized trials which could support a potential future New Drug Application (“NDA”).

AIM’s antiviral experimentation is designed to accumulate additional preliminary data supporting their hypothesis that Ampligen

is a powerful, broad-spectrum prophylaxis and early-onset therapeutic that may confer enhanced immunity and cross-protection.

AIM will conduct antiviral programs in those venues most readily available and able to generate valid proof-of-concept data, including

foreign venues.

May 2021, AIM exercised the option to re-purchase the New Brunswick manufacturing facility, pursuant to the terms of the March 2018 sale

and lease-back agreement.

The Company thereafter sold certain equipment and machinery that they determined to be obsolete and no longer

needed for current or future manufacturing.

Then, on March 3, 2022, AIM entered into an Agreement of Sale and Purchase with Acellories,

as purchaser pursuant to which the Company will sell the property for $ 3.9

The buyer has a mortgage contingency,

with the clause expiring on June 1, 2022.

Assuming that condition is met, we would anticipate closing on or before July 1, 2022.

forward, AIM will require one or more Contract Manufacturing Organizations (“CMO”) to produce Ampligen API.

While AIM believes

they have sufficient Ampligen API to meet their current needs, they are also continually exploring new efficiencies so as to maximize

their ability to fulfill future obligations.

In this regard, in April 2021, AIM approved a proposal from Polysciences Inc.

(“Polysciences”)

for the manufacture of Poly I and Poly C 12 U polynucleotides and associated test methods at Polysciences’ Warrington,

PA location to enhance their capacity to produce the polymer precursors to the drug Ampligen.

The Company is utilizing Polysciences’s

expertise to refine their approach to polymer production.

Additionally, AIM continues to be open to the possibility of agreements with

other CMOs, so as to create redundancy and to meet the potential need for larger quantities of API.

the opinion of management, all adjustments necessary for a fair presentation of such consolidated financial statements have been included.

6 unchanged sentences

on March 31, 2022.

Revision of Previously Reported Amounts

to the preparation of the consolidated financial statements as of and for the period ended December 31, 2020, Management noted an error

in the Company’s previously issued Consolidated Financial Statements.

The error related to the Company’s income taxes footnote disclosure

that resulted in the reduction of approximately $ 37,900,000 of certain Federal NOL carryforward assets limited by Internal

Revenue Code Section 382 and the corresponding valuation allowance as of and for the period ended December 31, 2020.

The revised balances

of the NOL carryforward assets and valuation allowance are $ 8,775,000 and $ 8,473,000 , respectively, as of December 31, 2020.

In evaluating

whether the previously issued Consolidated Financial Statements were materially misstated, the Company applied the guidance in ASC 250,

Accounting Changes and Error Corrections, SEC Staff Accounting Bulletin (“SAB”) Topic 1.M, Assessing Materiality and SAB

Topic 1.N, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements and

concluded that the effect of the error on prior period financial statements was immaterial.

The adjustment had no effect on the consolidated

balance sheet, statement of comprehensive loss, changes in stockholders’ equity or statement of cash flows for any annual or interim

Net Loss Per Share

1 unchanged sentence

Equivalent common shares, consisting of stock options and warrants which amounted to 2,453,782 and 1,672,825 , are excluded from the calculation

of diluted net loss per share for the nine months ended September 30, 2021, and 2020, respectively, since their effect is antidilutive

due to the net loss.

of diluted net loss per share for the three months ended March 31, 2022, and 2021, respectively, since their effect is antidilutive due

to the net loss.

Equity-Based Compensation

6 unchanged sentences

data to estimate expected dividend yield, expected life and forfeiture rates.

There were no options granted in the nine months ended

September 30, 2021, and 2020.

option for employees’ activity during the nine months ended September 30, 2021, is as follows:

During the three months ended March 31, 2022 there were

300,000 options granted and no options granted in the three months ended March 31, 2021.

option for employees’ activity during the three months ended March 31, 2022, is as follows:

option activity for employees:

Schedule of Stock Option Activity

Outstanding January 1, 2021

Outstanding September 30, 2021

Vested and expected to vest September 30, 2021

Exercisable September 30, 2021

January 1, 2022

March 31, 2022

and expected to vest March 31, 2022

March 31, 2022

stock option activity for employees:

Schedule of Unvested Stock Option Activity

Unvested January 1, 2021

Unvested September 30, 2021

January 1, 2022

March 31, 2022

option activity for non-employees:

Schedule of Stock Option Activity

Outstanding January 1, 2021

Outstanding September 30, 2021

Vested and expected to vest September 30, 2021

Exercisable September 30, 2021

January 1, 2022

March 31, 2022

and expected to vest March 31, 2022

March 31, 2022

stock option activity for non-employees:

Schedule of Unvested Stock Option Activity

Unvested January 1, 2021

Unvested September 30, 2021

compensation expense was approximately $ 1,320,000

and $ 596,000

for the nine months ended September 30, 2021,

and 2020, resulting in an increase in general and administrative expenses, respectively.

of September 30, 2021, and 2020, respectively, there was approximately $ 279,000 and $ 877,000 of unrecognized equity-based compensation

cost related to options granted under the Equity Incentive Plan.

January 1, 2022

March 31, 2022

compensation expense was approximately $ 242,000 and $ 526,000 for the three months ended March 31, 2022 and 2021, resulting in an increase

in general and administrative expenses, respectively.

March 31, 2022, and 2021, respectively, there was approximately $ 729,000 and $ 914,000 of unrecognized equity-based compensation cost

related to options granted under the Equity Incentive Plan.

Marketable Securities

securities consist of debt securities.

As of September 30, 2021, and December 31, 2020, it was determined that none of the

marketable securities had an other-than-temporary impairment.

As of September 30, 2021, and December 31, 2020, all securities were

measured as Level 1 instruments under the fair value measurements standard (See Note 12:

As of September 30, 2021, and

December 31, 2020, the Company held approximately $ 16,310,000

and $ 15,877,000 in

debt securities.

securities classified as available for sale consisted of:

securities consist of mutual funds.

At March 31, 2022 and December 31, 2021, it was determined that none of the marketable securities

had an other-than-temporary impairment.

At March 31, 2022 and December 31, 2021, all securities were measured as Level 1 instruments

of the fair value measurements standard (See Note 11:

As of March 31, 2022, and December 31, 2021 the Company held $ 15,554,000

and $ 16,175,000 in mutual funds.

Funds classified as available for sale consisted of:

Schedule of Available for Sale

(in thousands)

Gains /(Losses)

Marketable Securities

Treasury notes

Government mortgage-backed securities

Corporate bonds

Gains /(Losses)

Marketable Securities

Treasury notes

Government mortgage-backed securities

Corporate bonds

following presents available-for-sale securities’ gross unrealized losses and fair value aggregated by the short- and long-term

(in thousands)

Less than 12 Months

12 Months or More

Gross Unrealized Gains

Gross Unrealized Gains /(Losses)

Gross Unrealized Gains

Treasury notes

Government mortgage-backed securities

Corporate bonds

(in thousands)

Less than 12 Months

12 Months or More

Gross Unrealized Gains

Gross Unrealized Gains/ (Losses)

Gross Unrealized Gains

Treasury notes

Government mortgage-backed securities

Corporate bonds

of Equity Securities

losses recognized during the period on equity securities

Net gains and losses recognized during the period on equity securities sold during the period

gains and losses recognized during the reporting period on equity securities still held at the reporting date

Funds classified as available for sale consisted of:

losses recognized during the period on equity securities

Net gains and losses recognized during the period on equity securities sold during the period

gains and losses recognized during the reporting period on equity securities still held at the reporting date

Accrued Expenses

expenses consist of the following:

Schedule of Accrued Expenses

September 30, 2021

December 31, 2020

(in thousands)

September 30, 2021

December 31, 2020

Professional fees

Other expenses

Accrued expenses

of Accrued Expenses

trial expenses

Property and Equipment, net

Schedule of Property and Equipment

September 30, 2021

December 31, 2020

(in thousands)

September 30, 2021

December 31, 2020

Land, buildings and improvements

Furniture, fixtures, and equipment

Total property and equipment

of Property and Equipment

buildings and improvements

fixtures, and equipment

property and equipment

accumulated depreciation

Property and equipment, net

and equipment, net

and equipment are recorded at cost.

Depreciation is computed using the straight-line method over the estimated useful lives of the respective

assets, ranging from three to thirty-nine years .

March 16, 2018, the Company sold land and a building for $ 4,080,000 and

concurrently entered into an agreement to lease the property back for ten

The lease payments were initially

$ 408,000 per

year for two years through March 31, 2020, and will escalate in subsequent years On May 13, 2021, the Company completed its

re-purchase of the land and building for $ 4,732,637 inclusive

of closing costs, pursuant to its repurchase option in the property lease.

(See Note 13:

Financing Obligation Arising from Sale

Leaseback Transaction for more details on the sale leaseback of the property and equipment).

April 2021, the Company sold some of the assets located at its facility at 783 Jersey Ave., New Brunswick, N.J.

The assets sold consist

of equipment and machinery that the Company determined to be obsolete and no longer needed for current and future manufacturing.

assets were sold for an aggregate of $ 245,000 , which resulted in a gain on the sale of assets of $ 216,000 .

Schedule of Patents, Trademark Rights

(in thousands)

December 31, 2019

Depreciation and amortization are computed using the straight-line method over the estimated useful

lives of the respective assets, ranging from three to thirty-nine years.

Depreciation expense for the periods ending March 31,

2022 and March 31, 2021 was $ 10,000 and

respectively.

Company made a strategic shift on in-house manufacturing and recorded an impairment of the facility in the amount of $ 1,800,000 during

the year ended December 31, 2021.

During the period ending March 31, 2022, the Company reported assets held for sale related to the pending

sale of the manufacturing facility located at 783 Jersey Avenue, which is expected to close within 120 days of the effective date of

the Agreement of Sale and Purchase effective March 3, 2022.

(See Note 11 Fair Value).

of Patents, Trademark Rights

December 31, 2021

September 30, 2021

and trademarks are stated at cost (primarily legal fees) and are amortized using the straight-line method of the estimated useful life

The costs of provisional patents and pending

applications are not amortized until they are filed.

Patents are reviewed each reporting period to determine if it is likely that they

will be successfully filed.

The costs of provisional patents and pending applications for purposes of the amortization table below

are estimated for each year.

of patents and trademarks for each of the next five years is as follows:

Schedule of Amortization of Patents and Trademarks

Period Ending December 31,

(in thousands)

and trademarks are stated at cost and are amortized using the straight-line method of the estimated useful life of 17 years.

of patents and trademarks for each of the next five years and thereafter is as follows:

of Amortization of Patents and Trademarks

Ending December 31,

Stockholders’ Equity

2 unchanged sentences

may be determined by the Board of Directors.

Of its authorized preferred stock, 250,000 shares have been designated as Series A Junior

Of our authorized preferred stock, 250,000 shares have been designated as Series A Junior

Participating Preferred Stock and 8,000 shares have been designated as Series B Convertible Preferred Stock.

2 unchanged sentences

Company is authorized to issue 8,000 Series B Convertible Preferred Stock, no par value, stated value $ 1,000 per share.

As of September

As of March 31,

2022, and December 31, 2021, the Company had 715 and 715 shares of Series B Convertible Preferred Stock outstanding, respectively.

shall be entitled to receive, and the Company shall pay, dividends on shares of Series B Preferred Stock equal (on an as-if-converted-to-Common-Stock

basis) to and in the same form as dividend actually paid on shares of Common Stock when as and if such dividends are paid on shares of

the Common Stock.

Each such Preferred Share is convertible into 114 shares of common stock.

Upon any liquidation, dissolution or winding-up

of the Company, whether voluntary or involuntary, the Holders shall be entitled to receive out of the assets, whether capital or surplus

of the Company the same amount that a holder of Common Stock would receive if the Preferred Stock was fully converted.

The Series B Convertible

Preferred Stock shall no voting Rights.

to a registration statement relating to a rights offering declared effective by the SEC on February 14, 2019, AIM distributed to its

7 unchanged sentences

were approximately $ 4,700,000 .

During the nine months ended September 30, 2021, 7 shares of Series B Convertible Preferred stock were

converted into common stock, and for the twelve months ending December 31, 2020, 45 shares of Series B Convertible Preferred Stock were

converted into common stock.

Company has authorized 350,000,000 shares of common stock with specific limitations and restrictions on the usage of 8,000,000 of the

During the three months ending March 31, 2022, 0 shares of Series B Convertible Preferred Stock were converted

into common stock.

Company has authorized shares of 350,000,000 with specific limitations and restrictions on the usage of 8,000,000 of the 350,000,000

authorized shares.

3 unchanged sentences

for a sixty-day period commencing upon the date that the NYSE American approved the Company’s Supplemental Listing Application.

The Company issued 10,730 shares of its common stock at a price of $ 2.33 for a total of $ 25,000 under this plan.

When this plan expired,

the board of directors approved subsequent similar $ 500,000 plans for all directors, officers and employees to buy company shares from

the Company at the market price.

Subsequent plans were approved by the board of directors upon the expiration of prior plans.

plan was approved by the board of directors on September 14, 2021.

the fiscal year ended December 31, 2020, the Company issued a total of 27,501 shares of its common stock at prices ranging from $ 1.72

to $ 2.03 for a total of $ 50,000 .

the nine months ended September 30, 2021, the Company issued a total of 37,325 shares of its common stock at prices ranging from $ 1.92

When this plan expired, the board of directors approves subsequent similar $ 500,000 plans for all directors, officers and employees to

buy Company shares from the Company at the market price.

Subsequent plans were approved by the board of directors upon the expiration

of prior plans.

The latest plan was approved by the board of directors on March 2, 2022.

the three months ended March 31, 2022, the Company issued a total of 0 shares of its common stock.

the twelve months ended December 31, 2021, the Company issued a total of 132,238 shares of its common stock at prices ranging from $ 1.16

to $ 2.35 for a total of $ 205,000 .

19 unchanged sentences

$ 7,200,000 .

During the year ending December 31 , 2020, 1,870,000 of the Pre-funded Warrants

were exercised and 7,687,860 Warrants were exercised.

In addition, on March 25, 2020, the Representative’s Warrant was amended

to permit exercise of such warrant to commence on March 30, 2020.

These warrants were exercised on March 31, 2020, and an aggregate of

266,665 shares were issued upon exercise of this warrant for gross proceeds of approximately $ 264,000 and a $ 46,000 expense for the warrant

modification.

As of March 31, 2022, there are 15,000 Warrants outstanding.

July 19, 2019, the Company entered into a new Equity Distribution Agreement (the “2019 EDA”) with Maxim Group LLC (“Maxim”),

1 unchanged sentence

The 2019 EDA replaced a prior EDA with Maxim.

For the year ended December 31, 2020, the Company sold 20,444,807

shares under the 2019 EDA for total gross proceeds

of $ 53,936,615 ,

which includes a 3.5 %

fee to Maxim of $ 1,888,727 .

During the period ended September 30, 2021, the Company sold 5,665,731

shares under the 2019 EDA for total gross proceeds

of $ 13,301,526 ,

which includes a 3.5 %

fee to Maxim of $ 465,533 .

For the year ended December 31, 2020, the Company sold 20,444,807 shares under the 2019

EDA for total gross proceeds of $ 53,936,615 , which includes a 3.5 % fee to Maxim of $ 1,888,727 .

During the period ended December 31, 2021,

the Company sold 5,665,731 shares under the 2019 EDA for total gross proceeds of $ 13,301,526 , which includes a 3.5 % fee to Maxim of $ 465,533 .

The 2019 EDA was terminated in early February 2021.

2 unchanged sentences

(vii) Performance Cash Awards, and (viii) Other Stock Awards.

Initially, a maximum of 7,000,000

shares of Common Stock is reserved for potential

issuance pursuant to awards under the 2018 Equity Incentive Plan.

Unless sooner terminated, the 2018 Equity Incentive Plan will continue

in effect for a period of 10 years from its effective date.

On October 17, 2018, the Board of Directors issued 26,324

options to the officers and directors at the

exercise price of $ 9.68

expiring in 10

years, and on November 14, 2018, the Board of

Directors issued 23

options to each employee, officer, and director

at the exercise price of $ 9.68

expiring in ten

On January 28, 2019, 27,570

options were issued to each of these officers

with an exercise price of $ 9.68

for a period of ten

years with a vesting period of one year .

2020, 400,000

options were issued to each of these officers

with an exercise price range of $ 2.77

for a period of ten

years with a vesting period of one year .

December 2020, 675,000

options were issued to employees with an exercise

price range of $ 1.85

for a period of ten

years with a vesting period of one

of September 30, 2021, and December 31, 2020, there were 47,848,622 and 42,154,371 shares outstanding, respectively.

Initially, a maximum of 7,000,000 shares of Common Stock is reserved for

potential issuance pursuant to awards under the 2018 Equity Incentive Plan.

Unless sooner terminated, the 2018 Equity Incentive Plan

will continue in effect for a period of 10 years from its effective date.

During first quarter of 2022, 300,000 options were issued to

employees with an exercise price of $ .70 for a period of ten years with a vesting period of one year.

During fourth quarter of 2021,

613,512 options were issued to employees with an exercise price range of $ 1.11 to $ 1.71 for a period of ten years with a vesting period

During December 2020, 675,000 options were issued to employees with an exercise price range of $ 1.85 to $ 1.96 for a period

of ten years with a vesting period of one year.

of both periods March 31, 2022, and December 31, 2021, there were 47,994,672 shares outstanding.

Cash and Cash Equivalents

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Recent Accounting Pronouncements

August 2020, the FASB issued ASU 2020-06, “Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and

Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40)” (“ASU 2020-06”) .

ASU 2020-06 reduces

the number of models used to account for convertible instruments, amends diluted EPS calculations for convertible instruments, and amends

the requirements for a contract (or embedded derivative) that is potentially settled in an entity’s own shares to be classified

The amendments add certain disclosure requirements to increase transparency and decision-usefulness about a convertible instrument’s

terms and features.

Under the amendment, the Company must use the if-converted method for including convertible instruments in diluted

EPS as opposed to the treasury stock method.

ASU 2020-06 is effective for annual reporting periods beginning after December 15, 2023.

Early adoption is allowed under the standard with either a modified retrospective or full retrospective method.

The Company early adopted

ASU 2020-06 on January 1, 2021, using the modified retrospective method.

As a result of Management’s evaluation, the adoption of

ASU 2020-06 did not have a material impact on the consolidated financial statements.

Long-Term Debt

August 5, 2019, the Company issued a Secured Promissory Note (the “CV Note”) with Chicago Venture Partners, L.P.

The Note had an original principal amount of $ 2,635,000 , bore interest at a rate of 10 % per annum and will mature in 24 months, unless

earlier paid in accordance with its terms.

The Company received proceeds of $ 1,900,000 after an original issue discount and payment of

Lender’s legal fees.

Pursuant to a Security Agreement between the Company and the Lender, repayment of the Note is secured by substantially

all of its assets other than its intellectual property.

the quarter ending June 30, 2020, the Holder made redemptions of $ 650,000 reducing the principal to $ 1,985,000 .

On May 29, 2020, the

Company paid off the outstanding CV note consisting of principal of $ 1,985,000 , and accrued interest payable of $ 220,000 .

The net payment

of $ 1,795,000 , less the write off of the origination discount of $ 369,000 and issuance costs of $ 6,000 , resulted in a gain on extinguishment

of $ 66,000 .

expense associated with the CV Note was $ 0 , for the period ending September 30, 2021, and approximately $ 116,000 , for the period ending

September 30, 2020.

December 5, 2019, the Company issued a secured Promissory Note (the “AS Note”) to Atlas Sciences L.P.

The AS Note had an original principal amount of $ 2,175,000 , bore interest at a rate of 10 % per annum and will mature in 24 months, unless

earlier paid in accordance with its term.

June 19, 2020, the Company paid off the outstanding AS note which consisted of original principal of $ 2,175,000 , and accrued interest

payable of $ 122,000 less origination discount of $ 376,000 and issuance costs of $ 7,000 , with a net note payable of $ 1,838,000 , including

a gain on extinguishment of $ 76,000 .

expense associated with AS Note for the period ending September 30, 2021, was $ 0 and was approximately $ 106,000 for the period ending

September 30, 2020.

the first quarter of 2022 accounting pronouncements issued by the FASB did not or are not believed by management to have a material impact

on the Company’s present or future financial statements.

Company is required under U.S.

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The Company also has certain warrants with a cash settlement feature

in the unlikely occurrence of a Fundamental Transaction, namely (1) a merger or consolidation with another person;

(2) sale of substantially

all of its assets;

(3) holders of common stock sell 50% or more of outstanding shares;

(4) the Company effects an exchange of all its

securities for other securities, cash or property, and (5) the Company effects a stock purchase agreement or business combination for

more than 50% of outstanding shares.

in the occurrence of a Fundamental Transaction.

The fair value of the redeemable warrants (“Warrants”) related to the Company’s

February 2017, June 2017, August 2017, April 2018, and March 2019 common stock warrant issuances, are calculated using a Monte Carlo

While the Monte Carlo Simulation is one of a number of possible pricing models, the Company has determined it to be industry

accepted and fairly presented the fair value of the Warrants.

As an additional factor to determine the fair value of the Put’s

liability, the occurrence probability of a Fundamental Transaction event was factored into the valuation.

February 2017, June 2017, April 2018, and March 2019 common stock and warrant issuance, are calculated using a Monte Carlo Simulation.

While the Monte Carlo Simulation is one of a number of possible pricing models, the Company has determined it to be industry accepted

and fairly presented the fair value of the Warrants.

As an additional factor to determine the fair value of the Put’s liability,

the occurrence probability of a Fundamental Transaction event was factored into the valuation.

Company recomputes the fair value of the Warrants at the issuance date and the end of each quarterly reporting period.

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Company utilized the following assumptions to estimate the fair value of the February 2017 Warrants:

Schedule of Assumptions to Estimate Fair Value of Warrants

September 30, 2021

December 31, 2020

Underlying price per share

Exercise price per share

of Assumptions to Estimate Fair Value of Warrants

price per share

Exercise price per

$ 30.25 -$ 33.00

Risk-free interest rate

Expected holding period

Expected volatility

Expected dividend yield

$ 30.25 -$ 33.00

interest rate

0.71 %- 0.74 %

0.22 %- 0.23 %

Expected holding

dividend yield

Company utilized the following assumptions to estimate the fair value of the June 2017 Warrants:

September 30, 2021

December 31, 2020

Underlying price per share

Exercise price per share

Risk-free interest rate

Expected holding period

Expected volatility

Expected dividend yield

Company utilized the following assumptions to estimate the fair value of the August 2017 Warrants:

September 30, 2021

December 31, 2020

Underlying price per share

Exercise price per share

Risk-free interest rate

Expected holding period

Expected volatility

Expected dividend yield

price per share

Exercise price per

interest rate

Expected holding

dividend yield

Company utilized the following assumptions to estimate the fair value of the April 2018 Warrants:

September 30, 2021

December 31, 2020

Underlying price per share

Exercise price per share

Risk-free interest rate

Expected holding period

Expected volatility

Expected dividend yield

price per share

Exercise price per

interest rate

Expected holding

dividend yield

Company utilized the following assumptions to estimate the fair value of the March 2019 Warrants:

September 30, 2021

December 31, 2020

Underlying price per share

Exercise price per share

Risk-free interest rate

Expected holding period

Expected volatility

Expected dividend yield

price per share

Exercise price per

interest rate

Expected holding

dividend yield

significant assumptions using the Monte Carlo Simulation approach for valuation of the Warrants are:

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The Company believes such an occurrence is highly unlikely because:

Company only has one product that is FDA approved but which will not be available for commercial sales for 18 months at the earliest;

Company flagship product is approved only in Argentina for Severely Debilitated Chronic Fatigue Syndrome patients;

Company may have to perform additional clinical trials for FDA approval of its flagship product;

and global market conditions continue to include uncertainty, adding risk to any transaction;

Company only has one product that is FDA approved but is currently not available for commercial sales.

Company will have to perform additional clinical trials for FDA approval of its flagship product.

and market conditions continue to include uncertainty, adding risk to any transaction.

capital for a potential buyer in a cash transaction continues to be limited.

nature of a life science company is heavily dependent on future funding and high costs, including research & development;

Company has minimal revenue streams which could be insufficient to meet the funding needs for the cost of operations or construction

nature of a life sciences company is heavily dependent on future funding and high fixed costs, including Research & Development.

Company has minimal revenues streams which are insufficient to meet the funding needs for the cost of operations or construction

at their manufacturing facility;

2 unchanged sentences

related to a Put right being triggered as:

Schedule of Range of Probabilities

Range of Probability

of Range of Probabilities

of Probability

Monte Carlo Simulation has incorporated a 5.0% probability of a Fundamental Transaction to date for the life of the securities.

1 unchanged sentence

As the Company has no specific expectation of a Fundamental Transaction,

for reasons stated above, the Company used a discrete uniform probability distribution over the Expected Holding Period to model

the potential announcement of a Fundamental Transaction occurring during the Expected Holding Period.

for reasons elucidated above, the Company utilized a discrete uniform probability distribution over the Expected Holding Period to

model in the potential announcement of a Fundamental Transaction occurring during the Expected Holding Period.

100 Day Volatility at Announcement of a Fundamental Transaction .

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Holders would experience in receiving the proceeds of the Put.

the assumptions remain consistent from period to period (e.g., using historical stock prices), the numbers input change from period to

period (e.g., the actual historical prices input for the relevant period).

Company applies FASB ASC 820 that defines fair value, establishes a framework for measuring fair value in U.S.

GAAP, and expands disclosures

about fair value measurements.

The guidance does not impose any new requirements around which assets and liabilities are to be measured

at fair value, and instead applies to asset and liability balances required or permitted to be measured at fair value under existing

accounting pronouncements.

The Company measures its warrant liability for those warrants with a cash settlement feature at fair value.

ASC 820-10-35-37 establishes a valuation hierarchy based on the transparency of inputs used in the valuation of an asset or liability.

the assumptions remain consistent from period to period (e.g., utilizing historical stock prices), the numbers input change from period

to period (e.g., the actual historical prices input for the relevant period).

The carrying amount and estimated fair value of the above

Warrants was approximately $ 4,000 and $ 35,000 at March 31, 2022 and December 31, 2021, respectively.

Company applies FASB ASC 820 (formerly Statement No.

157 Fair Value Measurements ) that defines fair value, establishes a framework

for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements.

does not impose any new requirements around which assets and liabilities are to be measured at fair value, and instead applies to asset

and liability balances required or permitted to be measured at fair value under existing accounting pronouncements.

The Company measures

its warrant liability for those warrants with a cash settlement feature at fair value.

ASC 820-10-35-37 (formerly SFAS No.

157) establishes a valuation hierarchy based on the transparency of inputs used in the valuation

of an asset or liability.

Classification is based on the lowest level of inputs that is significant to the fair value measurement.

The valuation hierarchy contains

three levels:

valuation hierarchy contains three levels:

1 – Quoted prices are available in active markets for identical assets or liabilities at the reporting date.

Generally, this

includes certain U.S.

and government agency debt and equity securities that are traded in an active market.

2 – Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities;

includes debt and equity securities that are traded in an active market.

2 – Observable inputs other than Level 1 prices such as quote prices for similar assets or liabilities;

quoted prices in markets

8 unchanged sentences

requires significant management judgment or estimation.

As of September 30, 2021, the Company has classified the warrants with cash

settlement features as Level 3.

As of March 31, 2022, the Company has classified the warrants with cash settlement

features as Level 3.

Management evaluates a variety of inputs and then estimates fair value based on those inputs.

discussed above, the Company utilized the Monte Carlo Simulation Model in valuing these warrants.

As discussed above,

the Company utilized the Monte Carlo Simulation Model in valuing the warrants.

table below presents the balances of assets and liabilities measured at fair value on a recurring basis by level within the hierarchy

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

(in thousands)

As of September 30, 2021

Marketable securities

Redeemable warrants

(in thousands)

As of December 31, 2020

Marketable securities

Redeemable warrants

of Assets and Liabilities Measured at Fair Value on a Recurring Basis

thousands) As of March 31, 2022

thousands) As of December 31, 2021

changes in Level 3 Liabilities measured at fair value on a recurring basis are summarized as follows (in thousands):

Schedule of Changes in Level 3 Liabilities Measured at Fair Value on a Recurring Basis

Redeemable warrants:

Balance at December 31, 2020

Fair value adjustment

Balance at September 30, 2021

of Changes in Level 3 Liabilities Measured at Fair Value on a Recurring Basis

at December 31, 2021

value adjustments

at March 31, 2022

table below presents the balances of assets and liabilities measured at fair value on a nonrecurring basis by level within the hierarchy

of Assets and Liabilities Measured at Fair Value on a NonRecurring Basis

As of December 31, 2021

Gains (Losses)

lived assets held and used (a)

accordance with Subtopic 360-10, long-lived assets held and used with a carrying amount of $ 5,700,000 were written down to their fair

value of $ 3,900,000 , resulting in an impairment charge of $ 1,800,000 , which was included in earnings for the period ending December

Financing Obligation Arising from Sale Leaseback Transaction

1 unchanged sentence

back for ten years at $408,000 per year for two years through March 31, 2020.

The lease payments will increase 2.5% per year for the

next three years through March 31, 2023 and the lease payments will increase 3% for the remaining five years through March 31, 2028.

The lease payments would increase 2.5% per year for the

next three years through March 31, 2023, and the lease payments would increase 3% for the remaining five years through March 31, 2028 .

As part of the sale of this building, warrants were provided to the buyer for the purchase of up to 73,314 shares of Company common stock

1 unchanged sentence

on the date of execution of the letter of intent for the purchase.

The sale of the property includes an option to repurchase the property

The sale of the property included an option to repurchase the property

based on a contractual formula which does not permanently transfer all the risks and rewards of ownership to the buyer.

Because the sale

of the property includes the option to repurchase the property and includes the above attributes, the transaction was accounted for as

of the property included the option to repurchase the property and included the above attributes, the transaction was accounted for as

a financing transaction whereby the Company recorded the cash received and a financing obligation.

6 unchanged sentences

between the carrying value of the financing obligation including unamortized debt discount and the amount exchanged to extinguish the

the nine months ended September 30, 2021, the loss on extinguishment was $ 2,701,460 .

Interest expense relating to this financing agreement

was $ 19,000 for the nine months ended September 30, 2021, and $ 51,000 for the nine months ended September 30, 2020.

Company entered into a Lease Agreement for a term of five years commencing on September 14, 2020,

pursuant to which the Company agreed to lease two Sharp copiers.

expense relating to this financing agreement was $ 0 for the period ended March 31, 2022 and $ 14,000 for the period ended March 31, 2021.

Company leases office and storage space, and other equipment under non-cancellable operating leases with initial terms typically ranging

from 1 to 5 years.

At contract inception, the Company reviews the facts and circumstances of the arrangement to determine if the contract

is or contains a lease.

The Company follows the guidance in Topic 842 “ Leases ” to evaluate whether the contract has

an identified asset;

if the Company has the right to obtain substantially all economic benefits from the asset;

and if the Company has

the right to direct the use of the underlying asset.

When determining if a contract has an identified asset, the Company considers both

explicit and implicit assets, and whether the supplier has the right to substitute the asset.

When determining if the Company has the

right to direct the use of an underlying asset, the Company considers if it has the right to direct how and for what purpose the asset

is used throughout the period of use and if it controls the decision-making rights over the asset.

Company’s lease terms may include options to extend or terminate the lease.

The Company exercises judgment to determine the term

of those leases when extension or termination options are present and include such options in the calculation of the lease term when

it is reasonably certain that it will exercise those options.

Company has elected to include both lease and non-lease components in the determination of lease payments.

Payments made to a lessor

for items such as taxes, insurance, common area maintenance, or other costs commonly referred to as executory costs, are also included

in lease payments if they are fixed.

The fixed portion of these payments are included in the calculation of the lease liability, while

any variable portion would be recognized as variable lease expenses, when incurred.

Variable payments made to third parties for these,

or similar costs, such as utilities, are not included in the calculation of lease payments.

lease commencement, lease-related assets and liabilities are measured at the present value of future lease payments over the lease term.

As most of the Company’s leases do not provide an implicit rate, the Company exercises judgment in determining the incremental

borrowing rate based on the information available when the lease commences to measure the present value of future payments.

leases are included in other assets, current operating lease obligations, and operating lease obligations (less current portion) on the

Company’s consolidated balance sheet.

Short term leases with an initial term of 12 months or less are not presented on the balance

sheet with expense recognized as incurred.

Company entered into a Lease Agreement for a term of five years commencing on September 14, 2020 pursuant to which the Company agreed

to lease two Sharp copiers.

The base of $ 1,415 per month.

June 13, 2018, the Company entered into a Lease Agreement for a term of six years commencing on July 1, 2018, pursuant to which the Company agreed to lease approximately 3,000 rentable square feet.

The base rent increases by 3 % each year, and

ranges from $ 2,100 per month for the first year to $ 2,785 per month for the sixth year.

May 1, 2019, the Company entered into a Lease Agreement for a term of three years commencing on May 1, 2019 pursuant to which the Company agreed to lease approximately 3,000 rentable square feet.

The base rent is $ 1,500 per month for the term

of the lease.

June 13, 2018, the Company entered into a Lease Agreement for a term of six years commencing on July 1, 2018 pursuant to which the Company

agreed to lease approximately 3,000 rentable square feet.

The base rent increases by 3 % each year, and ranges from $ 2,100 per month for

the first year to $ 2,785 per month for the sixth year.

May 1, 2019, the Company entered into a Lease Agreement for a term of three

years commencing on May

1, 2019 , pursuant to which the Company agreed

to lease approximately 3,000

rentable square feet.

The base rent is $ 2,500

per month for the term of the lease.

4, 2021, the Company executed a request to renew the lease for a one-year term as defined in the Lease Agreement.

The request was accepted

and the one-year term commenced on April 30, 2022.

February 17, 2022, the Company entered into a Lease Agreement for a term of two years commencing on March 1, 2022, pursuant to

which the Company agreed to lease a Canon copier.

The base rent is $ 322

per month for the term of the lease.

expected lease term includes both contractual lease periods and, when applicable, cancelable option periods when it is reasonably certain

1 unchanged sentence

The Company’s leases have remaining lease terms between 13 months and 5 years.

of September 30, 2021, the weighted-average remaining term is 2.97 years.

Company has determined that the incremental borrowing rate is 10% as of September 30, 2021, based upon the most recently completed financing

transaction in December 2019.

Schedule of Operating lease Future Payments

Period December 31,

(in thousands)

Less imputed interest

of September 30, 2021, the balance of the right of use assets was $ 144,000 and the corresponding lease liability balance was $ 144,000 .

Total rent expense was $ 39,000 for the nine months ended September 30, 2021, and $ 38,000 for the nine months end September 30, 2020.

of March 31, 2022, and December 31, 2021, the weighted-average remaining term is 3.7 and 2.72 years, respectively.

Company has determined that the incremental borrowing rate is 10 % as of March 31, 2022, and December 31, 2021, respectively, based upon

the recently completed financing transaction in December 2019.

minimum payments as of March 31, 2022, are as follows:

of Operating lease Future Payments

Ending December 31,

imputed interest

of March 31, 2022, and December 31, 2021, the balance of the right of use assets was $ 144,000 and $ 149,000 , respectively, and the corresponding

lease liability balance was $ 144,000 and $ 149,000 , respectively.

The total rent expense for the period ended March 31, 2022, and December

31,2021 amounted to approximately $ 17,000 and $ 67,000 , respectively.

Total rent expense for short term leases for the period ended March

31, 2022 and December 31, 2021 amounted to approximately $ 3,000 and $ 12,000 , respectively.

Research, Consulting and Supply Agreements

July 2021, the Company executed a Reservation and Start-Up Agreement (the “Agreement”) with hVIVO Services Limited (“hVIVO”),

and subsequently signed a clinical trial agreement (“CTA”) in September.

The Company has paid hVIVO approximately $ 672,000 ,

representing half of the booking fee for use of its quarantine facility.

The balance of the agreement is approximately $ 3,398,000 .

January 2021, the Company entered into a Sponsor Agreement with the Centre for Human Drug Research (“CHDR”) for a Phase 1

1 unchanged sentence

has paid CHDR approximately $ 1,010,000 .

The balance of the agreement is approximately $ 70,000 .

The balance of the agreement is approximately $ 61,000 , to be paid in the second quarter of 2022.

April 2021, the Company approved a proposal from Polysciences Inc.

(“Polysciences”) for the manufacture of our Poly I and

Poly C12U polynucleotides and associated test methods at Polysciences’ Warrington, PA location to enhance our capacity to produce

the polymer precursors to the drug Ampligen.

The Company is working with Polysciences to negotiate and finalize both a Service Agreement

and a Quality Agreement.

For the year ended December 31, 2021 the Company has incurred an expense and paid Polysciences approximately

For the period ended March 31, 2022, the Company paid Polysciences $ 51,390 .

April 2022, AIM executed a work order with Amarex Clinical Research LLC, our contract research organization, pursuant to which Amarex

will manage a Phase 2 clinical trial in advanced pancreatic cancer patients designated AMP-270.

Per the work order, AIM anticipates that

the study will cost approximately $ 8.2 million, which includes pass through costs of approximately $ 1.0 million and excludes certain

third-party costs and escalations.

AIM anticipates that the study will take approximately 4.6 years to complete.

Subsequent Events

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements