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Item 1. Financial Statements

2022-08-12 compared with 2022-05-13 · 393 added, 371 removed, 127 unchanged (86% of the section changed)

FINANCIAL STATEMENTS

The accompanying consolidated

financial statements have been prepared by the Company and are unaudited.

In the opinion of management, all adjustments (which include

only normal recurring adjustments) necessary to present fairly the financial position at March 31, 2022 and December 31, 2021, and the

results of operations and cash flows for the three months ended March 31, 2022 and 2021, respectively, have been made.

Certain information

and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted

in the United States of America have been condensed or omitted.

It is suggested that these financial statements be read in conjunction

with the financial statements and notes thereto included in the Company’s audited financial statements for the year ended December

31, 2021 in the Company’s Annual Report on Form 10-K.

The results of operations for the three months ended March 31, 2022 are not

necessarily indicative of the operating results for the full year.

Actinium Pharmaceuticals, Inc.

Condensed Consolidated Balance

(amounts in thousands, except share and per share

accompanying consolidated financial statements have been prepared by the Company and are unaudited.

In the opinion of management, all

adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at June 30, 2022 and

December 31, 2021, and the results of operations and cash flows for the three and six months ended June 30, 2022 and 2021, respectively,

have been made.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting

principles generally accepted in the United States of America have been condensed or omitted.

It is suggested that these financial statements

be read in conjunction with the financial statements and notes thereto included in the Company’s audited financial statements for

the year ended December 31, 2021 in the Company’s Annual Report on Form 10-K.

The results of operations for the three and six months

ended June 30, 2022 are not necessarily indicative of the operating results for the full year.

Pharmaceuticals, Inc.

Consolidated Balance Sheets

thousands, except share and per share data)

Current Assets:

Cash and cash equivalents

Restricted cash - current

Restricted cash

Security deposit

2 unchanged sentences

Property and equipment, net of accumulated depreciation of $ 395 and $ 335

Security deposit – long term

Operating leases right-of-use assets

3 unchanged sentences

Accounts payable and accrued expenses

Other liability

Other revenue deferred– current liability

Operating leases current liability

1 unchanged sentence

Total Current Liabilities

Long-term license revenue deferred

Long-term operating leases obligations

Long-term finance leases obligations

11 unchanged sentences

Total Liabilities and Stockholders’ Equity

See accompanying notes to the condensed

consolidated financial statements.

Actinium Pharmaceuticals, Inc.

Condensed Consolidated Statements of

(amounts in thousands, except share and per share

accompanying notes to the condensed consolidated financial statements.

Pharmaceuticals, Inc.

Consolidated Statements of Operations

thousands, except share and per share data)

Three Months Ended

Six Months Ended

Other revenue

8 unchanged sentences

Total other income

Net loss per share of common stock – basic and diluted

Weighted average shares of common stock outstanding – basic and diluted

See accompanying notes to the condensed

consolidated financial statements.

Actinium Pharmaceuticals, Inc.

Condensed Consolidated Statement of

Changes in Stockholders’ Equity

For the Period from January 1, 2022 to March

(amounts in thousands, except share amounts)

Net loss per common share – basic and diluted

Weighted average common shares outstanding – basic and diluted

accompanying notes to the condensed consolidated financial statements.

Pharmaceuticals, Inc.

Consolidated Statement of Changes in Stockholders’ Equity

the Three and Six Months Ended June 30, 2022

thousands, except share amounts)

Stockholders’

4 unchanged sentences

$ ( 260,877 )

See accompanying notes to the condensed

consolidated financial statements.

Actinium Pharmaceuticals, Inc.

Condensed Consolidated Statement of

Changes in Stockholders’ Equity

For the Period from January 1, 2021 to March

(amounts in thousands, except share amounts)

Stock-based compensation

Sale of common stock, net of issuance costs

Balance, June 30, 2022

$ ( 268,644 )

accompanying notes to the condensed consolidated financial statements.

Pharmaceuticals, Inc.

Consolidated Statement of Changes in Stockholders’ Equity

the Three and Six Months Ended June 30, 2021

thousands, except share amounts)

Stockholders’

5 unchanged sentences

$ ( 236,294 )

See accompanying notes to the condensed

consolidated financial statements.

Actinium Pharmaceuticals, Inc.

Condensed Consolidated Statements of Cash

(amounts in thousands)

Three Months Ended

Cash Flows Used In Operating Activities:

Stock-based compensation

Sale of common stock, net of issuance costs

Exercise of stock options

Balance, June 30, 2021

$ ( 241,315 )

accompanying notes to the condensed consolidated financial statements.

Pharmaceuticals, Inc.

Consolidated Statements of Cash Flows

Six Months Ended

Cash Flows From Operating Activities:

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

Stock-based compensation expense

Depreciation & amortization expenses

Stock-based compensation

Changes in operating assets and liabilities:

Prepaid expenses and other current assets

Payment of security deposit

Accounts payable and accrued expenses

Other liability

Other revenue deferred– current liability

Long-term license revenue deferred

Operating lease liabilities

Net Cash Used In Operating Activities

Net Cash Provided By/Used In Operating Activities

Cash Flows Used In Investing Activities:

1 unchanged sentence

Net Cash Used In Investing Activities

Cash Flows Used In / From Financing Activities:

Cash Flows From Financing Activities:

Payments on finance leases

Sales of shares of common stock, net of costs

Net Cash Used In / Provided By Financing Activities

Proceeds from exercise of stock options

Net Cash Provided By Financing Activities

Net change in cash, cash equivalents, and restricted cash

4 unchanged sentences

Cash paid for income taxes

See accompanying notes to the condensed

consolidated financial statements.

Actinium Pharmaceuticals, Inc.

Notes to Condensed Consolidated Financial

Note 1 - Description of Business and Summary

of Significant Accounting Policies

Nature of Business -

Actinium Pharmaceuticals, Inc.

(the “Company” or “Actinium”) is a clinical-stage, biopharmaceutical company focused

on developing and potentially commercializing targeted radiotherapies for patients with unmet needs.

accompanying notes to the condensed consolidated financial statements.

Pharmaceuticals, Inc.

to Condensed Consolidated Financial Statements

1 - Description of Business and Summary of Significant Accounting Policies

Nature of Business - Actinium

Pharmaceuticals, Inc.

(the “Company” or “Actinium”) is a clinical-stage, biopharmaceutical company focused on

developing and potentially commercializing targeted radiotherapies for patients with unmet needs.

The Company applies its proprietary

technology platform consisting of over 190 patents, know-how and clinical experience in approximately 600 patients to develop novel therapies

for blood cancer and solid tumor indications.

Its clinical and preclinical development programs utilize multiple isotopes including Actinium-225,

Iodine-131 and Lutetium-177 directed at multiple validated cancer targets including CD45, CD33, CD38, CD47, HER2 and HER3 for targeted

conditioning prior to cell and gene therapies including bone marrow transplant and cancer therapeutics as single agents or in combination

with other therapeutic modalities.

Basis of Presentation -

Unaudited Interim Financial Information - The accompanying unaudited interim consolidated financial statements and related notes have

been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.

interim financial information, and in accordance with the rules and regulations of the United States Securities and Exchange Commission

(the “SEC”) with respect to Form 10-Q and Article 10 of Regulation S-X.

Accordingly, they do not include all of the information

and footnotes required by U.S.

technology platform consisting of over 195 patents and patent applications, know-how and clinical experience in approximately 600 patients

to develop novel therapies for blood cancer and solid tumor indications.

Its clinical and preclinical development programs utilize multiple

isotopes including Actinium-225, Iodine-131 and Lutetium-177 directed at multiple validated cancer targets including CD45, CD33, CD38,

CD47, HER2 and HER3 for targeted conditioning prior to cell and gene therapies including bone marrow transplant and cancer therapeutics

as single agents or in combination with other therapeutic modalities.

of Presentation - The accompanying unaudited condensed consolidated financial statements and related notes have been prepared in

accordance with accounting principles generally accepted in the United States of America (“U.S.

GAAP”) for condensed financial

information, and pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”)

with respect to Form 10-Q and Article 10 of Regulation S-X.

Accordingly, they do not include all of the information and footnotes required

GAAP for complete financial statements.

The unaudited interim consolidated financial statements furnished

reflect all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement

of the results for the interim periods presented.

Interim results are not necessarily indicative of the results for the full year.

unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and

notes thereto contained in the Company’s annual report on Form 10-K for the year ended December 31, 2021.

Principles of Consolidation

- The unaudited interim consolidated financial statements include the Company’s accounts and those of the Company’s wholly

owned subsidiaries.

Use of Estimates in Financial

Statement Presentation - The preparation of these unaudited interim consolidated financial statements in conformity with U.S.

requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated

The unaudited condensed consolidated financial statements reflect all adjustments (consisting

of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of the results for the condensed

periods presented.

Condensed results are not necessarily indicative of the results for the full year.

These unaudited condensed consolidated

financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in

the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.

of Consolidation - The basis of consolidation is unchanged from the disclosure in the Company’s Notes to the Consolidated Financial

Statements section in its Report on Form 10-K for the year ended December 31, 2021.

The unaudited condensed consolidated financial statements

include the Company’s accounts and those of the Company’s wholly owned subsidiaries.

of Estimates - The preparation of these unaudited condensed consolidated financial statements in conformity with U.S.

GAAP requires

management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated

financial statements and the reported amounts of expenses during the reporting period.

Actual results could differ from those estimates.

Impact of COVID–19

Pandemic on Financial Statements - The global health crisis caused by the novel coronavirus (“COVID-19”) pandemic and

its resurgences has and may continue to negatively impact global economic activity, which, despite progress in vaccination efforts, remains

uncertain and cannot be predicted with confidence.

In addition, the Omicron variants of COVID-19, which appears to be the most transmissible

variants to date, has spread globally.

The full impact of the Omicron variants, or any subsequent variants, cannot be predicted at this

time, and could depend on numerous factors, including vaccination rates among the population, the effectiveness of COVID-19 vaccines against

the Omicron variants and subsequent variants and the response by governmental bodies and regulators.

Many countries around the

world have continued to impose quarantines and restrictions on travel and mass gatherings to slow the spread of the virus.

the Company’s ability to continue to operate its business may also be limited.

Such events may result in a period of business, supply

and drug product manufacturing disruption, and in reduced operations, any of which could materially affect the Company’s business,

financial condition and results of operations.

In response to COVID-19, the Company implemented hybrid working for its office-based staff,

while its research staff has been actively working in its laboratory throughout the pandemic and thus far, has not experienced a significant

disruption or delay in its operations as it relates to the clinical development, preclinical research or drug production of its drug candidates.

continuation or worsening of the levels of market disruption and volatility seen in the recent past could have an adverse effect on the

Company’s ability to access capital, which could in the future negatively affect the Company’s liquidity.

In addition, a recession

or market correction resulting from the spread of COVID-19 could materially affect the Company’s business and the value of the Company’s

common stock.

Additionally, COVID-19 may

result in delays in receiving approvals from local and foreign regulatory authorities, delays in necessary interactions with IRB’s

or Institutional Review Boards, local and foreign regulators, ethics committees and other important agencies and contractors due to limitations

in employee resources or forced furlough of government employees.

To date, COVID-19 has not

had a financial impact on the Company.

The Company continues to monitor the impacts of COVID-19 on the global economy and on its business

However, at this time, it is difficult to predict how long the potential operational impacts of COVID-19 will last or to what

degree further disruption might impact the Company’s operations and financial results.

Cash, Cash Equivalents

and Restricted Cash - The Company considers all highly liquid accounts with original maturities of three months or less to be cash

Balances held by the Company are typically in excess of Federal Deposit Insurance Corporation insured limits.

The following is a summary

of cash, cash equivalents and restricted cash at March 31, 2022 and December 31, 2021:

of COVID–19 Pandemic on Financial Statements - The global health crisis caused by the novel coronavirus (“COVID-19”)

pandemic and its resurgences has and may continue to negatively impact global economic activity, which, despite progress in vaccination

efforts, remains uncertain and cannot be predicted with confidence.

In addition, the Omicron variants of COVID-19, including subvariants

BA.4 and BA.5, which appear to be the most transmissible variants to date, have spread globally.

The full impact of the Omicron variants,

or any subsequent variants, cannot be predicted at this time, and could depend on numerous factors, including vaccination rates among

the population, the effectiveness of COVID-19 vaccines against the Omicron variants and subsequent variants and the response by governmental

bodies and regulators.

countries around the world have continued to impose quarantines and restrictions on travel and mass gatherings to slow the spread of

Accordingly, the Company’s ability to continue to operate its business may also be limited.

Such events may result in

a period of business, supply and drug product manufacturing disruption, and in reduced operations, any of which could materially affect

the Company’s business, financial condition and results of operations.

In response to COVID-19, the Company implemented hybrid

working for its office-based staff, while its research staff has been actively working in its laboratory throughout the pandemic and

thus far, has not experienced a significant disruption or delay in its operations as it relates to the clinical development, preclinical

research or drug production of its drug candidates.

A continuation or worsening of the levels of market disruption and volatility

seen in the recent past could have an adverse effect on the Company’s ability to access capital, which could in the future negatively

affect the Company’s liquidity.

In addition, a recession or market correction resulting from the spread of COVID-19 could materially

affect the Company’s business and the value of the Company’s common stock.

Additionally,

COVID-19 may result in delays in receiving approvals from local and foreign regulatory authorities, delays in necessary interactions

with IRB’s or Institutional Review Boards, local and foreign regulators, ethics committees and other important agencies and contractors

due to limitations in employee resources or forced furlough of government employees.

date, COVID-19 has not had a financial impact on the Company.

The Company continues to monitor the impacts of COVID-19 on the global

economy and on its business operations.

However, at this time, it is difficult to predict how long the potential operational impacts

of COVID-19 will last or to what degree further disruption might impact the Company’s operations and financial results.

Cash Equivalents and Restricted Cash - The Company considers all highly liquid accounts with original maturities of three months

or less to be cash equivalents.

Balances held by the Company are typically in excess of Federal Deposit Insurance Corporation insured

following is a summary of cash, cash equivalents and restricted cash at June 30, 2022 and December 31, 2021:

(in thousands)

Cash and cash equivalents

Restricted cash – current

Restricted cash

Cash, cash equivalents and restricted cash

Restricted cash - current

relates to a certificate of deposit held as collateral for a letter of credit issued in connection with the Company’s lease for

corporate office space.

Company has operating and finance leases for corporate office space, office equipment and furniture located at the corporate office space.

cash relates to a certificate of deposit held as collateral for a letter of credit issued in connection with the Company’s lease

for corporate office space.

– The Company has operating and finance leases for corporate office space, office equipment and furniture located at the corporate

office space.

Leases with an initial term of 12 months or less are not recorded on the balance sheet;

lease expense for these leases is recognized on

a straight-line basis over the lease term.

Fair Value of Financial

Instruments - Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly

transaction between market participants.

A fair value hierarchy has been established for valuation inputs that gives the highest priority

to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs.

Revenue Recognition -

The Company recognizes revenue in accordance with Accounting Standards Codification (ASC) Topic 606, Revenue From Contracts With Customers

Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services,

in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services.

revenue recognition for arrangements within the scope of ASC 606, the entity performs the following five steps:

(i) identify the contract(s)

with a customer;

lease expense for these leases

is recognized on a straight-line basis over the lease term.

The Company entered into a lease for corporate office space effective June

1, 2022 and paid a security deposit to the landlord.

A certificate of deposit will be provided as collateral for a letter of credit to

be issued with this new office space during 2022 and at that time, the security deposit will be returned to the Company.

Recognition - The Company recognizes revenue in accordance with Accounting Standards Codification (ASC) Topic 606, Revenue From

Contracts With Customers (“ASC 606”).

Under ASC 606, an entity recognizes revenue when its customer obtains control of

promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods

To determine revenue recognition for arrangements within the scope of ASC 606, the entity performs the following five steps:

(i) identify the contract(s) with a customer;

(ii) identify the performance obligations in the contract;

(iii) determine the transaction price, including variable

consideration, if any;

(iii) determine the transaction

price, including variable consideration, if any;

(iv) allocate the transaction price to the performance obligations in the contract;

and (v) recognize revenue as

the entity satisfies a performance obligation.

The Company only applies the five-step model to contracts when it is probable that the

entity will collect the consideration to which it is entitled in exchange for the goods or services it transfers to the customer.

At contract inception, once

the contract is determined to be within the scope of ASC 606, the Company assesses whether the promised goods or services promised within

each contract are distinct and, therefore, represent a separate performance obligation.

Goods and services that are determined not

to be distinct are combined with other promised goods and services until a distinct bundle is identified.

In determining whether goods

or services are distinct, the Company evaluates certain criteria, including whether (i) the customer can benefit from the good or

service either on its own or together with other resources that are readily available to the customer (capable of being distinct) and

(ii) the good or service is separately identifiable from other goods or services in the contract (distinct in the context of the

The Company then determines

the transaction price, which is the amount of consideration it expects to be entitled from a customer in exchange for the promised goods

or services for each performance obligation and recognizes the associated revenue as each performance obligation is satisfied.

The Company’s

estimate of the transaction price for each contract includes all variable consideration to which it expects to be entitled.

Variable consideration

includes payments in the form of collaboration milestone payments.

If an arrangement includes collaboration milestone payments, the Company

evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price

using the most likely amount method.

If it is probable that a significant revenue reversal would not occur, the associated milestone value

is included in the transaction price.

ASC 606 requires the Company

to allocate the arrangement consideration on a relative standalone selling price basis for each performance obligation after determining

the transaction price of the contract and identifying the performance obligations to which that amount should be allocated.

standalone selling price is defined in the revenue standard as the price at which an entity would sell a promised good or service separately

to a customer.

The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance

obligation as each performance obligation is satisfied, either at a point in time or over time, and if over time, recognition is based

on the use of an output or input method.

Collaborative Arrangements

- The Company follows the accounting guidance for collaboration agreements with third parties, which requires that certain transactions

between the Company and collaborators be recorded in its consolidated statements of operations and comprehensive loss on either a gross

basis or net basis, depending on the characteristics of the collaborative relationship, and requires enhanced disclosure of collaborative

relationships.

The Company evaluates its collaboration agreements for proper classification in its consolidated statements of operations

and comprehensive loss based on the nature of the underlying activity.

When the Company has concluded that it has a customer relationship

with one of its collaborators, the Company follows the guidance of ASC 606 .

Grant Revenue –

The Company has a grant from a government-sponsored entity for research and development related activities that provide for payments

for reimbursed costs, which includes overhead and general and administrative costs as well as an administrative fee.

and (v) recognize revenue as the entity satisfies a performance obligation.

The Company only applies the five-step model to contracts

when it is probable that the entity will collect the consideration to which it is entitled in exchange for the goods or services it transfers

to the customer.

contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses whether the promised goods

or services promised within each contract are distinct and, therefore, represent a separate performance obligation.

Goods and services

that are determined not to be distinct are combined with other promised goods and services until a distinct bundle is identified.

determining whether goods or services are distinct, the Company evaluates certain criteria, including whether (i) the customer can

benefit from the good or service either on its own or together with other resources that are readily available to the customer (capable

of being distinct) and (ii) the good or service is separately identifiable from other goods or services in the contract (distinct

in the context of the contract).

Company then determines the transaction price, which is the amount of consideration it expects to be entitled from a customer in exchange

for the promised goods or services for each performance obligation and recognizes the associated revenue as each performance obligation

is satisfied.

The Company’s estimate of the transaction price for each contract includes all variable consideration to which it

expects to be entitled.

Variable consideration includes payments in the form of collaboration milestone payments.

If an arrangement includes

collaboration milestone payments, the Company evaluates whether the milestones are considered probable of being reached and estimates

the amount to be included in the transaction price using the most likely amount method.

If it is probable that a significant revenue

reversal would not occur, the associated milestone value is included in the transaction price.

606 requires the Company to allocate the arrangement consideration on a relative standalone selling price basis for each performance

obligation after determining the transaction price of the contract and identifying the performance obligations to which that amount should

be allocated.

The relative standalone selling price is defined in the revenue standard as the price at which an entity would sell a promised

good or service separately to a customer.

The Company then recognizes as revenue the amount of the transaction price that is allocated

to the respective performance obligation as each performance obligation is satisfied, either at a point in time or over time, and if

over time, recognition is based on the use of an output or input method.

Collaborative

Arrangements - The Company follows the accounting guidance for collaboration agreements with third parties, which requires that certain

transactions between the Company and collaborators be recorded in its consolidated statements of operations and comprehensive loss on

either a gross basis or net basis, depending on the characteristics of the collaborative relationship, and requires enhanced disclosure

of collaborative relationships.

The Company evaluates its collaboration agreements for proper classification in its consolidated statements

of operations and comprehensive loss based on the nature of the underlying activity.

When the Company has concluded that it has a customer

relationship with one of its collaborators, the Company follows the guidance of ASC 606 .

Grant Revenue – The

Company has a grant from a government-sponsored entity for research and development related activities that provides for payments for

reimbursed costs, which includes overhead and general and administrative costs as well as an administrative fee.

The Company recognizes

3 unchanged sentences

Revenue and related expenses are presented gross in the consolidated statements of operations.

Research and Development

Costs - Research and development costs are expensed as incurred.

These costs include the costs of manufacturing drug product, the

costs of clinical trials, costs of employees and associated overhead, and depreciation and amortization costs related to facilities and

Research and development reimbursements are recorded by the Company as a reduction of research and development costs.

Share-Based Payments -

The Company estimates the fair value of each stock option award at the grant date by using the Black-Scholes option pricing model.

fair value determined represents the cost for the award and is recognized over the vesting period during which an employee is required

to provide service in exchange for the award.

License Revenue –

The Company entered into a product licensing agreement whereby the Company allowed a third party to commercialize a certain product

in specified territories using the Company’s trademarks.

The terms of this arrangement includes payment to the Company for a combination

of one or more of the following:

upfront license fees;

development, regulatory and sales-based milestone payments;

and royalties on net

sales of licensed products.

The Company uses its judgment to determine whether milestones or other variable consideration should be included

in the transaction price.

license fees :

If the license to the Company’s intellectual property is determined to be distinct from the other performance

obligations identified in the arrangement, the Company will recognize revenue from upfront license fees allocated to the license when

the license is transferred to the licensee and the licensee is able to use and benefit from the license.

For licenses that are bundled

with other promises, the Company determines whether the combined performance obligation is satisfied over time or at a point in time.

regulatory or commercial milestone payments :

At the inception of each arrangement that includes payments based on the achievement

of certain development, regulatory and sales-based or commercial events, the Company evaluates whether the milestones are considered

probable of being achieved and estimates the amount to be included in the transaction price using the most likely amount method.

is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price.

Milestone payments that are not within the Company’s or the licensee’s control, such as regulatory approvals, are not considered

probable of being achieved until regulatory approval is received.

At the end of each subsequent reporting period, the Company will re-evaluate

the probability of achieving such development and regulatory milestones and any related constraint, and if necessary, adjust the Company’s

estimate of the overall transaction price.

Any such adjustments are recorded on a cumulative catch-up basis and recorded as part of license

revenue during the period of adjustment.

milestone payments and royalties :

For arrangements that include sales-based royalties, including milestone payments based on the

volume of sales, the Company will determine whether the license is deemed to be the predominant item to which the royalties or sales-based

milestones relate and if such is the case, the Company will recognize revenue at the later of (i) when the related sales occur, or (ii)

when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied).

payments and fees may require deferral of revenue recognition to a future period until the Company performs its obligations under these

arrangements or when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur or when

the uncertainty associated with any variable consideration is subsequently resolved.

Amounts payable to the Company are recorded as accounts

receivable when the Company’s right to consideration is unconditional.

and Development Costs - Research and development costs are expensed as incurred.

These costs include the costs of manufacturing drug

product, the costs of clinical trials, costs of employees and associated overhead, and depreciation and amortization costs related to

facilities and equipment.

Research and development reimbursements are recorded by the Company as a reduction of research and development

Payments - The Company estimates the fair value of each stock option award at the grant date by using the Black-Scholes option pricing

The fair value determined represents the cost for the award and is recognized over the vesting period during which an employee

is required to provide service in exchange for the award.

The Company accounts for forfeitures of stock options as they occur.

Net Loss Per Common Share

- Basic loss per common share is computed by dividing the net loss available to common stockholders by the weighted average number of

shares of common stock outstanding during the reporting period.

For periods of net loss, diluted loss per share is calculated similarly

to basic loss per share because the impact of all potential dilutive common shares is anti-dilutive.

For the three months ended March

31, 2022 and 2021, the Company’s potentially dilutive shares, which include outstanding common stock options and warrants, have

not been included in the computation of diluted net loss per share as the result would have been anti-dilutive.

Loss Per Common Share - Basic loss per common share is computed by dividing the net loss available to common stockholders by the

weighted average number of shares of common stock outstanding during the reporting period.

For periods of net loss, diluted loss per

share is calculated similarly to basic loss per share because the impact of all potential dilutive common shares is anti-dilutive.

the three months ended June 30, 2022 and 2021, the Company’s potentially dilutive shares, which include outstanding common stock

options and warrants, have not been included in the computation of diluted net loss per share as the result would have been anti-dilutive.

(in thousands)

Accounting Standards

Recently Adopted – In May 2021, FASB issued ASU 2021-04, Earnings Per Share (topic 260), Debt — Modifications and Extinguishments

(Subtopic 470-50), Compensation – Stock Compensation (Topic 718) and Derivatives and Hedging – Contracts in an Entity’s

Own Equity (Subtopic 815-40) – Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified

Written Call Options , which provides guidance of a modification or an exchange of a freestanding equity-classified written call option

that remains equity classified after modification or exchange as (1) an adjustment to equity and, if so, the related earnings per share

(EPS) effects, if any, or (2) an expense and, if so, the manner and pattern of recognition.

The amendments in this ASU are effective January

1, 2022, including interim periods.

The Company adopted this standard effective January 1, 2022 and the standard did not have a material

effect on the Company’s financial statements.

In November 2021, the FASB

issued ASU 2021-10, Government Assistance (Topic 832), Disclosures by Business Entities about Government Assistance , which provides

guidance on disclosure requirements to entities other than not-for-profit entities about transaction with a government that are accounted

for by applying a grant or contribution accounting model by analogy.

ASU 2021-10 requires an entity to make annual disclosures related

to (1) the nature of the transactions and the related accounting policy used to account for the government transactions, (2) quantification

and disclosure of amounts related to the government transactions included in balance sheet and income statement financial statement line

items, and (3) significant terms and conditions of the government transactions, including commitments and contingencies.

The amendments

of ASU 2021-10 are effective January 1, 2022, including interim periods.

The Company adopted this standard effective January 1, 2022 and

the standard did not have a material impact on the Company’s financial statements.

Accounting Standards Recently

Issued – In October 2021, FASB issued ASU 2021-08, Business Combinations (Topic 805), Account for Contract Assets and Contract

Liabilities from Contracts with Customers , which provides guidance on accounting for contract assets and contract liabilities acquired

in a business combination in accordance with ASC 606.

To achieve this, an acquirer may assess how the acquiree applied ASC 606 to determine

what to record for the acquired revenue contracts.

Generally, this should result in an acquirer recognizing and measuring the acquired

contract assets and contract liabilities consistent with how they were recognized and measured in the acquiree’s financial statements.

Adopted Accounting Pronouncements – In May 2021, FASB issued ASU 2021-04, Earnings Per Share (topic 260), Debt — Modifications

and Extinguishments (Subtopic 470-50), Compensation – Stock Compensation (Topic 718) and Derivatives and Hedging – Contracts

in an Entity’s Own Equity (Subtopic 815-40) – Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding

Equity-Classified Written Call Options , which provides guidance of a modification or an exchange of a freestanding equity-classified

written call option that remains equity classified after modification or exchange as (1) an adjustment to equity and, if so, the related

earnings per share (EPS) effects, if any, or (2) an expense and, if so, the manner and pattern of recognition.

The amendments in this

ASU are effective January 1, 2022, including interim periods.

The Company adopted this standard effective January 1, 2022 and the standard

did not have a material effect on the Company’s financial statements.

November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832), Disclosures by Business Entities about Government Assistance ,

which provides guidance on disclosure requirements to entities other than not-for-profit entities about transaction with a government

that are accounted for by applying a grant or contribution accounting model by analogy.

ASU 2021-10 requires an entity to make annual

disclosures related to (1) the nature of the transactions and the related accounting policy used to account for the government transactions,

(2) quantification and disclosure of amounts related to the government transactions included in balance sheet and income statement financial

statement line items, and (3) significant terms and conditions of the government transactions, including commitments and contingencies.

The amendments of ASU 2021-10 are effective January 1, 2022, including interim periods.

Early adoption is permitted, including adoption

in an interim period.

The Company will evaluate the impact of ASU 2021-08 on any future business combinations the Company may enter in

Note 2 - Commitments and Contingencies

On June 15, 2012,

the Company entered into a license and sponsored research agreement with Fred Hutchinson Cancer Research Center (“FHCRC”)

The Company adopted this standard effective January

1, 2022, and the standard did not have a material impact on the Company’s financial statements.

Issued Accounting Pronouncements – In October 2021, FASB issued ASU 2021-08, Business Combinations (Topic 805), Account

for Contract Assets and Contract Liabilities from Contracts with Customers , which provides guidance on accounting for contract assets

and contract liabilities acquired in a business combination in accordance with ASC 606.

To achieve this, an acquirer may assess how the

acquiree applied ASC 606 to determine what to record for the acquired revenue contracts.

Generally, this should result in an acquirer

recognizing and measuring the acquired contract assets and contract liabilities consistent with how they were recognized and measured

in the acquiree’s financial statements.

The amendments of ASU 2021-08 are effective January 1, 2023, including interim periods.

Early adoption is permitted, including adoption in an interim period.

The Company will evaluate the impact of ASU 2021-08 on any future

business combinations the Company may enter in the future.

2 - Commitments and Contingencies

June 15, 2012, the Company entered into a license and sponsored research agreement with Fred Hutchinson Cancer Research Center (“FHCRC”)

to build upon previous and ongoing clinical trials with apamistamab (licensed antibody).

3 unchanged sentences

A milestone payment of $ 1 million will be due to FHCRC upon U.S.

Food and Drug Administration (“FDA”) approval of

the first drug utilizing the licensed antibody.

Upon commercial sale of the drug, royalty payments of 2% of net sales will be due to FHCRC.

Note 3 - Leases

The Company determines if

an arrangement is a lease at inception.

This determination generally depends on whether the arrangement conveys to the Company the right

to control the use of a fixed asset for a period of time in exchange for consideration.

Control of an underlying asset is conveyed to

the Company if the Company obtains the rights to direct the use of and to obtain substantially all of the economic benefits from using

the underlying asset.

The Company has lease agreements which include lease and non-lease components, which the Company has elected to

account for as a single lease component for all classes of underlying assets.

Lease expense for variable lease components are recognized

when the obligation is probable.

Right-of-use assets and liabilities

are recognized at commencement date based on the present value of lease payments over the lease term.

ASC 842 requires a lessee to discount

its unpaid lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental

borrowing rate.

As an implicit interest rate is not readily determinable in the Company’s leases, the incremental borrowing rate

is used based on the information available at commencement date in determining the present value of lease payments.

The lease term for all of

the Company’s leases includes the non-cancellable period of the lease plus any additional periods covered by either a Company option

to extend (or not to terminate) the lease that the Company is reasonably certain to exercise, or an option to extend (or not to terminate)

the lease controlled by the lessor.

Options for lease renewals have been excluded from the lease term (and lease liability) for the majority

of the Company’s leases as the reasonably certain threshold is not met.

At March 31, 2022, the Company

has an operating lease for corporate office space and two finance leases for office equipment and furniture located in the corporate office

In addition, the Company has auxiliary corporate office space that it rents on a month-to-month basis;

this rental is accounted

for as an operating lease with the same term as the Company’s main office in the same building.

The components of lease expense are as follows:

Food and Drug Administration (“FDA”) approval

of the first drug utilizing the licensed antibody.

Upon commercial sale of the drug, royalty payments of 2% of net sales will be due

The Company entered into a

lease for corporate office space, effective June 1, 2022.

As of June 30, 2022, the Company has two operating leases for corporate office

space and two finance leases for office equipment and furniture located in one of the corporate office spaces.

In addition, the Company

has auxiliary corporate office space that it rents on a month-to-month basis;

this rental is accounted for as an operating lease with

the same term as the Company’s main office.

components of lease expense are as follows:

Three months ended

Six months ended

(in thousands)

4 unchanged sentences

Total finance lease cost

Supplemental cash flow information related to leases

are as follows:

Cash flow information:

Three months ended

cash flow information related to leases are as follows:

flow information:

Six months ended

(in thousands)

7 unchanged sentences

Finance Leases

Weighted average remaining lease terms are as follows

at March 31, 2022:

average remaining lease terms are as follows at June 30, 2022:

Weighted average remaining lease term:

1 unchanged sentence

Finance Leases

As the interest rate implicit

in the leases was not readily determinable at the time that the leases were evaluated, the Company used its incremental borrowing rate

based on the information available in determining the present value of lease payments.

The Company’s incremental borrowing rate

was based on the term of the lease, the economic environment of the lease and reflect the rate the Company would have had to pay to borrow

on a secured basis.

Below is information on the weighted average discount rates used at the time that the leases were evaluated:

the interest rate implicit in the leases was not readily determinable at the time that the leases were evaluated, the Company used its

incremental borrowing rate based on the information available in determining the present value of lease payments.

The Company’s

incremental borrowing rate was based on the term of the lease, the economic environment of the lease and reflect the rate the Company

would have had to pay to borrow on a secured basis.

Below is information on the weighted average discount rates used at the time that

the leases were evaluated:

Weighted average discount rates:

1 unchanged sentence

Finance Leases

Maturities of lease liabilities

are as follows:

of lease liabilities are as follows:

(in thousands)

Year ending December 31,

Operating Leases

Finance Leases

2022 (excluding three months ended March 31, 2022)

2022 (excluding six months ended June 30, 2022)

Total lease payments

1 unchanged sentence

Present value of lease liabilities

Note 4 – Other revenue

The Company determined that

certain collaborations with a third party are within the scope of ASC 606.

The collaboration agreement is made up of multiple modules

related to various research activities.

The Company identified a single performance obligation to provide research services within each

module for which the Company receives monetary consideration.

The third party can choose to proceed with each module or can terminate

the agreement at any time.

The Company recognizes revenue for each module on a straight-line basis over the expected module period.

for succeeding modules is not recognized until all contingencies are resolved, inclusive of the third party’s ability to terminate

Other revenue recognized during the three months ended March 31, 2022 and March 31, 2021 was $ 0.8 million and $ 0.6 million

4 – Other revenue

Company determined that certain collaborations with a third party are within the scope of ASC 606.

The collaboration agreement is made

up of multiple modules related to various research activities.

The Company identified a single performance obligation to provide research

services within each module for which the Company receives monetary consideration.

The third party can choose to proceed with each module

or can terminate the agreement at any time.

The Company recognizes revenue for each module on a straight-line basis over the expected

module period.

Revenue for succeeding modules is not recognized until all contingencies are resolved, inclusive of the third party’s

ability to terminate the module.

Other revenue recognized during the three months and six months ended June 30, 2022 was $ 0.0 million

and $ 0.9 million, respectively, and for the three months and six months ended June 30, 2021 was $ 0.3 million and $ 0.9 million, respectively.

Company has a grant from a government-sponsored entity for research and development related activities that provide for payments for

reimbursed costs, which includes overhead and general and administrative costs as well as an administrative fee.

The Company recognizes

revenue from grants as it performs services under this arrangement.

Associated expenses are recognized when incurred as research and

development expense.

Other revenue recognized during the three months and six months ended June 30, 2022 was $ 0.0 million and $ 0.1 million,

respectively.

The Company has a grant from

a government-sponsored entity for research and development related activities that provide for payments for reimbursed costs, which includes

overhead and general and administrative costs as well as an administrative fee.

The Company recognizes revenue from grants as it performs

services under this arrangement.

Associated expenses are recognized when incurred as research and development expense.

Other revenue of

$ 0.1 million was recognized for the three months ended March 31, 2022.

There was no other revenue recognized from a grant from a government-sponsored

entity for the three months ended March 31, 2021.

Note 5 - Equity

In August 2020 the Company

entered into the Capital on Demand™ Sales Agreement with JonesTrading Institutional Services LLC, or JonesTrading, pursuant to which

the Company may sell, from time to time, through or to JonesTrading, up to an aggregate of $ 200 million of its common stock.

common stock are offered pursuant to a shelf registration statement on Form S-3 filed with the SEC on August 7, 2020.

As of December 31,

2021, the Company had sold 6.7 million shares of common stock, resulting in gross proceeds of $ 59.1 million and net proceeds of $ 57.0

For the three months ended March 31, 2022, there were no sales of shares of common stock.

For the three months ended March 31,

2021, the Company sold 1.7 million shares of common stock, resulting in gross proceeds of $ 14.8 million and net proceeds of $ 14.4 million.

Stock Options

The following is a summary

of stock option activity for the three months ended March 31, 2022:

There was no other revenue recognized from a grant from a government-sponsored entity during the six months ended June

On April 7, 2022, the Company

entered into a license and supply agreement (the “License Agreement”) with Immedica Pharma AB (“Immedica”), pursuant

to which Immedica licensed the exclusive product rights for commercialization of Iomab-B (I-131 apamistamab) in the European Economic

Area, Middle East and North Africa (EUMENA) including Algeria, Andorra, Bahrain, Cyprus, Egypt, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon,

Libya, Monaco, Morocco, Oman, Palestine, Qatar, San Marino, Saudi Arabia, Switzerland, Syria, Tunisia, Turkey, the United Arab Emirates,

the United Kingdom, the Vatican City and Yemen.

Upon signing, the Company was entitled to an upfront payment of $ 35 million from Immedica,

which was received in May 2022.

Under the terms of the License Agreement, the Company is eligible to receive regulatory and commercial

milestone payments and is entitled to receive royalties in the mid-20 percent range on net sales of the product in certain countries that

may result from the License Agreement.

The Company will continue to be responsible for certain clinical development activities and the

manufacturing of Iomab-B and will retain commercialization rights in the U.S.

and rest of the world.

The Company’s contract liabilities

are recorded within Other revenue deferred – current liability or Long-term license revenue deferred in its condensed consolidated

balance sheets depending on the short-term or long-term nature of the payments to be recognized.

The Company’s contract liabilities

primarily consist of advanced payments from licensees.

Other revenue deferred – current liability was $ 0.2 million at June 30, 2022

and $ 0.9 million at December 31, 2021.

Long-term license revenue deferred was $ 35.0 million at June 30, 2022;

there was no long-term license

revenue deferred at December 31, 2021.

This deferred revenue will be recognized upon EU regulatory approval of Iomab B.

August 2020 the Company entered into the Capital on Demand™ Sales Agreement with JonesTrading Institutional Services LLC, or JonesTrading,

pursuant to which the Company may sell, from time to time, through or to JonesTrading, up to an aggregate of $ 200 million of its common

Shares of common stock are offered pursuant to a shelf registration statement on Form S-3 filed with the SEC on August 7, 2020.

As of December 31, 2021, the Company had sold 6.7 million shares of common stock, resulting in gross proceeds of $ 59.1 million and net

proceeds of $ 57.0 million.

For the six months ended June 30, 2022, the Company sold 2.7 million shares of common stock, resulting in

gross proceeds of $ 17.2 million and net proceeds of $ 16.7 million.

For the six months ended June 30, 2021, the Company sold 3.5 million

shares of common stock, resulting in gross proceeds of $ 29.6 million and net proceeds of $ 28.7 million.

June 28, 2022, the Company entered into an Amendment and Restated Capital on Demand™ Sales Agreement (the “A&R Sales

Agreement”) with JonesTrading and B.

Riley Securities, Inc.

Riley Securities”).

The A&R Sales Agreement modifies

the original Capital on Demand™ Sales Agreement to include B.

Riley Securities as an additional sales agent thereunder.

following is a summary of stock option activity for the six months ended June 30, 2022:

(in thousands, except for per-share amounts)

Number of Shares

Outstanding, January 1, 2022

Outstanding, March 31, 2022

Exercisable, March 31, 2022

During the three months ended

March 31, 2022, the Company granted new employees options to purchase 5 thousand shares of common stock with an exercise price ranging

from $ 5.20 to $ 5.93 per share, a term of 10 years, and a vesting period of 4 years.

The options have an aggregated fair value of

$ 22 thousand that was calculated using the Black-Scholes option-pricing model.

Variables used in the Black-Scholes option-pricing model

Outstanding, June 30, 2022

Exercisable, June 30, 2022

the six months ended June 30, 2022, the Company granted new employees options to purchase 120 thousand shares of common stock with an

exercise price ranging from $ 5.20 to $ 5.93 per share, a term of 10 years, and a vesting period of 4 years.

The options have an aggregated

fair value of $ 442 thousand that was calculated using the Black-Scholes option-pricing model.

Variables used in the Black-Scholes option-pricing

model include:

(1) discount rate range from 1.52% to 3.03% (2) expected life of 6 years, (3) expected volatility range from 78.8% to

79.9%, and (4) zero expected dividends.

The fair values of all options

issued and outstanding are being amortized over their respective vesting periods.

The unrecognized compensation expense at March 31, 2022

was $ 4.4 million related to unvested options, which is expected to be expensed over a weighted average of 3.1 years.

During the three

months ended March 31, 2022 and 2021, the Company recorded compensation expense related to stock options of $ 0.4 million and $ 0.4 million,

respectively.

Following is a summary of

warrant activity for the three months ended March 31, 2022:

fair values of all options issued and outstanding are being amortized over their respective vesting periods.

The unrecognized compensation

expense at June 30, 2022 was $ 4.4 million related to unvested options, which is expected to be expensed over a weighted average of 3.0

During the six months ended June 30, 2022 and 2021, the Company recorded compensation expense related to stock options of $ 0.8

million and $ 0.7 million, respectively.

is a summary of warrant activity for the six months ended June 30, 2022:

(in thousands, except for per-share amounts)

2 unchanged sentences

Cancelled/Expired

Outstanding, March 31, 2022

Exercisable, March 31, 2022

Note 6 – Subsequent Events

On April 7, 2022, the

Company entered into a license and supply agreement (the “License Agreement”) with Immedica Pharma AB

(“Immedica”), pursuant to which Immedica licensed the exclusive product rights for commercialization of Iomab-B (I-131

apamistamab) in the European Economic Area, Middle East and North Africa (EUMENA) including Algeria, Andorra, Bahrain, Cyprus,

Egypt, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Libya.

Monaco, Morocco, Oman, Palestine, Qatar, San Marino, Saudi Arabia,

Switzerland, Syria, Tunisia, Turkey, the United Arab Emirates, the United Kingdom, the Vatican City and Yemen.

Upon signing, the

Company is entitled to an upfront payment of $35 million from Immedica, which was received in May 2022.

Under the terms of the License Agreement, the Company is

eligible to receive aggregate regulatory and commercial milestone payments of up to approximately $417 million, subject to future

currency exchange rates.

Additionally, the Company is entitled to receive royalties in the mid-20 percent range on net sales of the

product in certain countries that may result from the License Agreement.

The Company will continue to be responsible for certain

clinical development activities and the manufacturing of Iomab-B and will retain commercialization rights in the U.S.

Since March 31, 2022, the

Company has sold 1.6 million shares of common stock under its Capital on Demand™ Sales Agreement with JonesTrading, resulting in

net proceeds of $ 11.1 million.

Outstanding, June 30, 2022

Exercisable, June 30, 2022

6 – Subsequent Event

June 30, 2022, the Company has sold 0.3 million shares of common stock under its A&R Sales Agreement, resulting in net proceeds of

$ 1.4 million.

August 2, 2022, warrants to purchase an aggregate of 0.6 million shares of common stock expired.

These warrants were issued on August

2, 2017, when the Company completed an underwritten offering of 0.7 million shares of its common stock and warrants to purchase an aggregate

of 0.6 million shares of its common stock at a price of $ 22.50 per share and related warrant.

The warrants were exercisable for a period

of 5 years at an exercise price of $ 31.50 per share.

As of August 12, 2022, the Company has 1.4 million warrants outstanding.

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