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Item 1. Financial Statements

2022-11-14 compared with 2022-08-12 · 438 added, 350 removed, 170 unchanged (82% of the section changed)

FINANCIAL STATEMENTS

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)

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 September 30, 2022 and December 31, 2021, and

the results of operations and cash flows for the three and nine months ended September 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 nine months

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

Actinium Pharmaceuticals, Inc.

Condensed Consolidated Balance Sheets

(amounts in thousands, except share and per share

September 30,

Current Assets:

Cash and cash equivalents

Restricted cash

Restricted cash - current

Security deposit

2 unchanged sentences

Property and equipment, net of accumulated depreciation of $ 440 and $ 335

Security deposit – long term

Restricted cash – long term

Operating leases right-of-use assets

22 unchanged sentences

Total Liabilities and Stockholders’ Equity

accompanying notes to the condensed consolidated financial statements.

Pharmaceuticals, Inc.

Consolidated Statements of Operations

thousands, except share and per share data)

See accompanying notes to the condensed consolidated

financial statements.

Actinium Pharmaceuticals, Inc.

Condensed Consolidated Statements of Operations

(amounts in thousands, except share and per share

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Other revenue

10 unchanged sentences

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)

See accompanying notes to the condensed consolidated

financial statements.

Actinium Pharmaceuticals, Inc.

Condensed Consolidated Statement of Changes

in Stockholders’ Equity

For the Three and Nine Months Ended September

(amounts in thousands, except share amounts)

Stockholders’

8 unchanged sentences

$ ( 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)

Stock-based compensation

Sale of common stock, net of issuance costs

Balance, September 30, 2022

$ ( 278,118 )

See accompanying notes to the condensed consolidated

financial statements.

Actinium Pharmaceuticals, Inc.

Condensed Consolidated Statement of Changes

in Stockholders’ Equity

For the Three and Nine Months Ended September

(amounts in thousands, except share amounts)

Stockholders’

10 unchanged sentences

$ ( 241,315 )

accompanying notes to the condensed consolidated financial statements.

Pharmaceuticals, Inc.

Consolidated Statements of Cash Flows

Six Months Ended

Stock-based compensation

Sale of common stock, net of issuance costs

Balance, September 30, 2021

$ ( 247,738 )

See accompanying notes to the condensed consolidated

financial statements.

Actinium Pharmaceuticals, Inc.

Condensed Consolidated Statements of Cash Flows

(amounts in thousands)

Nine Months Ended

September 30,

Cash Flows From Operating Activities:

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

Stock-based compensation

Stock-based compensation expense

Depreciation and amortization expense

Changes in operating assets and liabilities:

Prepaid expenses and other current assets

Payment of security deposit

Accounts payable and accrued expenses

17 unchanged sentences

Cash paid for income taxes

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.

Supplemental disclosure of non-cash investing and financing activity:

Acquisition of equipment financed by security deposit

See accompanying notes to the condensed consolidated

financial statements.

Actinium Pharmaceuticals, Inc.

Notes to Condensed Consolidated Financial Statements

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.

The Company applies its proprietary

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 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.

technology platform consisting of over 195 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.

Its lead drug candidate, Iomab-B, has met the primary endpoint of the pivotal Phase 3 SIERRA Trial

with a high degree of statistical significance (p<0.0001) and the Company will report additional data from the SIERRA trial by the

Its second most advanced drug candidate, Actimab-A, is being studied in a Phase 1 combination trial with the chemotherapy

regimen CLAG-M and has reported median overall survival of 12 months, 53 % 1-year overall survival and 32 % 2-year overall survival in patients

with relapsed or refractory AML who have adverse cytogenetics such as a TP53 mutation or have failed targeted therapies.

Data from this

trial will be presented in an oral presentation at the American Society of Hematology Annual Meeting & Symposium in December 2022.

Basis 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 by U.S.

GAAP for complete

financial statements.

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.

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.

Principles 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.

Use 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.

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

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, 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 and boosters 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

Many countries around

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

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.

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)

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

preclinical research or manufacturing of its drug candidates.

Although the Company is adhering to health and safety protocols,

an outbreak of COVID-19 at the Company’s facilities could nonetheless cause shutdowns of facilities and a reduction in its

workforce, which could cause a disruption or delay in such operations.

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

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 direct 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, 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 September 30, 2022 and December 31, 2021:

(amounts in thousands)

September 30,

Cash and cash equivalents

Restricted cash

Restricted cash - current

Restricted cash – long-term

Cash, cash equivalents and restricted cash

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.

Restricted cash relates to certificates of deposit held as collateral

for letters of credit issued in connection with the Company’s leases of corporate office spaces.

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.

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;

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 was provided as collateral for a letter of credit issued with this office

space during 2022 and at that time, the security deposit was returned to the Company.

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;

(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.

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.

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 provides for payments

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

The Company recognizes

14 unchanged sentences

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

Upfront 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.

Development, 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.

If it 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.

1 unchanged sentence

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.

Sales-based 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).

Upfront 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.

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.

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

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)

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.

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 and nine months ended

September 30, 2022 and 2021, the Company’s potentially dilutive shares, which include outstanding common stock options, restricted

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

(amounts in thousands)

September 30,

Restricted Stock Units

Recently 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.

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.

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.

Recently 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

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).

FHCRC has completed both a Phase 1 and Phase

2 clinical trial with apamistamab.

The Company has been granted exclusive rights to the antibody and related master cell bank developed

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

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:

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.

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”) to build upon

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

FHCRC has completed both a Phase 1 and Phase 2 clinical trial

with apamistamab.

The Company has been granted exclusive rights to the antibody and related master cell bank developed by FHCRC.

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 entered into a lease for corporate office space, effective

June 1, 2022.

The lease has a term of 5 years 2 months , with an expiration date of July 30, 2027 , and a current annual rate of $ 0.6 million.

The Company is also responsible for certain other costs, such as insurance, utilities and maintenance.

As of September 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.

The components of lease expense

are as follows:

Three months ended

Six months ended

(in thousands)

Nine Months ended

(amounts in thousands)

September 30,

Operating lease expense

3 unchanged sentences

Total finance lease cost

cash flow information related to leases are as follows:

flow information:

Six months ended

(in thousands)

Supplemental cash flow information

related to leases are as follows:

Cash flow information:

Nine Months ended

(amounts in thousands)

September 30,

Cash paid for amounts included in the measurement of lease liabilities:

6 unchanged sentences

Finance Leases

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

Weighted average remaining lease terms are as follows

at September 30, 2022:

Weighted average remaining lease term:

1 unchanged sentence

Finance Leases

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:

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:

Weighted average discount rates:

1 unchanged sentence

Finance Leases

of lease liabilities are as follows:

(in thousands)

Maturities of lease liabilities

are as follows:

(amounts in thousands)

Year ending December 31,

2022 (excluding six months ended June 30, 2022)

2022 (excluding nine months ended September 30, 2022)

Total lease payments

1 unchanged sentence

Present value of lease liabilities

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.

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

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 and nine months ended September 30, 2022 was $ 0.0 million and $ 0.9 million,

respectively, and for the three months and nine months ended September 30, 2021 was $ 0.0 million and $ 0.9 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 recognized

during the three months and nine months ended September 30, 2022 was $ 0.0 million and $ 0.1 million, respectively.

Other revenue recognized

during the three and nine months ended September 30, 2021 was $ 0.2 million.

On April 7, 2022, the Company

12 unchanged sentences

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.

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 $ 0.1 million at

September 30, 2022 and $ 0.9 million at December 31, 2021.

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

there was no long-term license revenue deferred at December 31, 2021.

This deferred revenue will be recognized upon European Union regulatory

approval of Iomab B.

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 nine months ended September 30, 2022, the Company sold 3.0 million shares of common stock, resulting in gross proceeds

of $ 18.9 million and net proceeds of $ 18.3 million.

For the nine months ended September 30, 2021, the Company sold 4.5 million shares

of common stock, resulting in gross proceeds of $ 35.6 million and net proceeds of $ 34.5 million.

On June 28, 2022, the Company

entered into an Amendment and Restated Capital on Demand™ Sales Agreement (the “A&R Sales Agreement”) with JonesTrading

Riley Securities, Inc.

Riley Securities”).

The A&R Sales Agreement modifies

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

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)

Stock Options

The following is a summary

of stock option activity for the nine months ended September 30, 2022:

(amounts in thousands, except for per-share amounts)

Outstanding, January 1, 2022

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.

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:

Outstanding, September 30, 2022

Exercisable, September 30, 2022

During the nine months ended

September 30, 2022, the Company granted options to purchase 1.9 million shares of common stock with an exercise price ranging from $ 4.96

to $ 8.46 per share, a term of 10 years, and a vesting period of 4 years.

The options have an aggregated fair value of $ 6.6 million

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

Variables used in the Black-Scholes option-pricing model include:

discount rate range from 1.52% to 3.45% (2) expected life of 6 years, (3) expected volatility range from 78.8% to 80.2%, 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 September 30,

2022 was $ 9.7 million related to unvested options, which is expected to be expensed over a weighted average of 3.5 years.

During the nine

months ended September 30, 2022 and 2021, the Company recorded compensation expense related to stock options of $ 1.6 million and $ 1.0

million, respectively.

Restricted Stock Units

The Company issued 300 thousand

restricted stock units (“RSUs”) in August 2022 to an employee.

These RSUs were immediately vested on the date of the grant,

however, shares under the RSUs will not be issued until the earlier of a change of control event, the termination of the recipient’s

continuous service status for any reason other than by the Company for cause, or the third anniversary of the date of the grant.

value of the RSUs, $ 1.8 million, was determined based on the stock price of $ 5.85 on the date of the grant and is being recognized over

three years .

The unrecognized compensation expense at September 30, 2022 of $ 1.7 million is expected to be expensed over 2.9 years.

the three months and nine months ended September 30, 2022, the Company recorded compensation expense related to RSUs of $ 0.1 million.

Following is a summary of

warrant activity for the nine months ended September 30, 2022:

(in thousands, except for per-share amounts)

2 unchanged sentences

Cancelled/Expired

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.

Outstanding, September 30, 2022

Exercisable, September 30, 2022

On 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 common stock and warrants to purchase 0.6 million shares of 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

Note 6 – Subsequent Event

Since September 30, 2022, the

Company has sold 0.3 million shares of common stock under its A&R Sales Agreement, resulting in net proceeds of $ 2.7 million.

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