What changed in this filing

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Item 2. Management’s Discussion and Analysis

2022-08-12 compared with 2022-05-13 · 75 added, 42 removed, 255 unchanged (31% of the section changed)

181 unchanged sentences

As such, WP1874 will be the primary focus in our development efforts of the WP1244 portfolio.

Results of Operations for the Three Months Ended March 31, 2022

Compared to the Three Months Ended March 31, 2021

Results of Operations for the Three Months Ended June 30, 2022 Compared

to the Three Months Ended June 30, 2021

General and Administrative Expense

General and administrative expense was approximately

$1,260,000 for the three months ended March 31, 2022 compared to approximately $1,403,000 for the comparable period in 2021.

in general and administrative expense was mainly attributable to a decrease of approximately $298,000 for employee compensation

(due to the timing of annual employee incentive compensation) and taxes and $68,000 in stock-based compensation, which were offset with

increases of approximately $199,000 in legal and professional fees and $24,000 in other expenses.

$1,343,000 for the three months ended June 30, 2022 compared to approximately $1,146,000 for the comparable period in 2021.

in general and administrative expense was mainly attributable to an increase of approximately $189,000 for employee compensation

(due to the timing of annual employee incentive compensation) and taxes and $149,000 in legal and professional fees, which were offset

with decreases of approximately $170,000 in stock-based compensation and $29,000 in other expenses.

Our general and administrative expenses

are expected to remain approximately at these levels for the remainder of this year except for the three months ended June 30, 2022 in

which the annual employee incentive compensation, as previously disclosed, will be accrued and paid.

are expected to remain approximately at these levels for the remainder of this year.

Research and Development Expense

Research and development expense was approximately

$1,521,000 for the three months ended March 31, 2022 compared to approximately $2,207,000 for the comparable period in 2021.

in research and development expenses during the period were mainly attributed to the timing of drug development expenses (significant

manufacturing activity occurred in the prior year period with much less occurring in the current year, and this lower level of manufacturing

activity is expected to continue throughout this year), as well as a credit to research and development expense for the funds collected

from WPD Pharmaceuticals related to their purchase of Berubicin drug product for their clinical trials, partially offset by an increase

in contract research organization (CRO) expenses related to continued progress with our Phase II clinical trial.

Our CRO expenditures

are primarily for labor related to activating selected trial sites, managing patient enrollment processes, collecting and managing data

from patient treatments throughout the trial, processing reimbursement to the sites for patient treatment, and assisting with necessary

submissions to amend the IND.

CRO expenditures are expected to remain relatively level throughout the remainder of the trial as site activation

efforts and the associated costs thereof transition into reimbursing clinical trial sites for patient treatment costs as site and patient

enrollment increases.

We expect to incur increased research and development costs in the future as we continue our Phase II clinical trial.

The net loss for the three months ended March 31,

Research and development expense was

approximately $2,221,000 for the three months ended June 30, 2022 compared to approximately $2,665,000 for the comparable period in

The decrease in research and development expenses during the period were mainly attributed to the timing of drug development

expenses (significant manufacturing activity occurred in the prior year period with much less occurring in the current year, and

this lower level of manufacturing activity is expected to continue throughout this year), as well as a credit to research and

development expense for the funds collected from WPD Pharmaceuticals related to their purchase of Berubicin drug product for their

clinical trials, partially offset by an increase in contract research organization (CRO) expenses related to continued progress with

our Phase II clinical trial.

Our CRO expenditures are primarily for labor related to activating selected trial sites, managing

patient enrollment processes, collecting and managing data from patient treatments throughout the trial, processing reimbursement to

the sites for patient treatment, and assisting with necessary submissions to amend the IND.

CRO expenditures are expected to remain

relatively level throughout the remainder of the trial as site activation efforts and the associated costs thereof transition

into reimbursing clinical trial sites for patient treatment costs as site and patient enrollment increases.

We expect to incur

increased research and development costs in the future as we continue our Phase II clinical trial.

The net loss for the three months ended June 30,

2022 was approximately $3,566,000 compared to approximately $3,814,000 for the comparable period in 2021.

The change in net loss is attributable

to decreases in employee compensation (due to the timing of annual employee incentive compensation and associated payroll taxes), the

timing of drug development expenses (significant manufacturing activity occurred in the prior year period with much less occurring in

the current year), as well as a credit to research and development expense for the funds collected from WPD Pharmaceuticals related to

their purchase of Berubicin drug product for their clinical trials, partially offset by an increase in CRO expenses related to continued

progress with our Phase II clinical trial as well as increases in legal and professional fees and other expenses.

to decreases the timing of drug development expenses (significant manufacturing activity occurred in the prior year period with much less

occurring in the current year), as well as a credit to research and development expense for the funds collected from WPD Pharmaceuticals

related to their purchase of Berubicin drug product for their clinical trials, partially offset by an increase in CRO expenses related

to continued progress with our Phase II clinical trial as well as increases in legal and professional fees and other expenses.

Results of Operations for the Six Months Ended June 30, 2022 Compared

to the Six Months Ended June 30, 2021

General and Administrative Expense

General and administrative expense was approximately

$2,603,000 for the six months ended June 30, 2022 compared to approximately $2,549,000 for the comparable period in 2021.

in general and administrative expense was mainly attributable to increases of $348,000 in legal and professional fees and $54,000 in other

expenses, which were offset with decreases of approximately $110,000 for employee compensation and taxes and $238,000 in stock-based

compensation.

Our general and administrative expenses are expected to remain approximately at these levels for the remainder of this year.

Research and Development Expense

Research and development expense was

approximately $3,743,000 for the six months ended June 30, 2022 compared to approximately $4,872,000 for the comparable period in

The decrease in research and development expenses during the period were mainly attributed to the timing of drug development

expenses (significant manufacturing activity occurred in the prior year period with much less occurring in the current year, and

this lower level of manufacturing activity is expected to continue throughout this year), as well as a credit to research and

development expense for the funds collected from WPD Pharmaceuticals related to their purchase of Berubicin drug product for their

clinical trials, partially offset by an increase in contract research organization (CRO) expenses related to continued progress with

our Phase II clinical trial.

Our CRO expenditures are primarily for labor related to activating selected trial sites, managing

patient enrollment processes, collecting and managing data from patient treatments throughout the trial, processing reimbursement to

the sites for patient treatment, and assisting with necessary submissions to amend the IND.

CRO expenditures are expected to remain

relatively level throughout the remainder of the trial as site activation efforts and the associated costs thereof transition

into reimbursing clinical trial sites for patient treatment costs as site and patient enrollment increases.

We expect to incur

increased research and development costs in the future as we continue our Phase II clinical trial.

The net loss for the six months ended June 30,

2022 was approximately $6,350,000 compared to approximately $7,427,000 for the comparable period in 2021.

The change in net loss is attributable

to decreases in employee compensation and stock-based compensation, the timing of drug development expenses (significant manufacturing

activity occurred in the prior year period with much less occurring in the current year), as well as a credit to research and development

expense for the funds collected from WPD Pharmaceuticals related to their purchase of Berubicin drug product for their clinical trials,

partially offset by an increase in CRO expenses related to continued progress with our Phase II clinical trial as well as increases in

legal and professional fees and other expenses.

Liquidity and Capital Resources

On March 31, 2022, we had

cash of approximately $12,440,000 and we had working capital of approximately $13,664,000.

We fund our operations from proceeds from equity

On June 30, 2022, we had cash

of approximately $8,959,000 and we had working capital of approximately $10,474,000.

We fund our operations from proceeds

from equity sales.

In January 2022, we completed a financing with

4 unchanged sentences

from the private placement were approximately $11.5 million, before deducting the placement agent’s fees and other offering expenses.

We believe that the proceeds from this issuance

and our cash on hand are sufficient to fund our planned operations into, but not beyond, 2023.

Our plan of operations is primarily focused on

16 unchanged sentences

Net cash used in operating activities was approximately

$3,077,000 and $3,308,000 for the three months ended March 31, 2022 and 2021, respectively, and mainly included payments made for clinical

$6,440,000 and $8,306,000 for the six months ended June 30, 2022 and 2021, respectively, and mainly included payments made for clinical

trial preparation, officer compensation, insurance, marketing and professional fees to our consultants, attorneys and accountants.

1 unchanged sentence

Net cash used by investing activities was approximately

$0 and $4,000 for the three months ended March 31, 2022 and 2021, respectively.

The amount used in 2021 are related to the purchase of

furniture and equipment.

$3,000 and $4,000 for the six months ended June 30, 2022 and 2021, respectively.

The amount used in 2022 and 2021 are related to the purchase

of furniture and equipment.

Cash provided by financing activities

Net cash provided by financing activities was $10,397,000

for the three months ended March 31, 2022 related to the sale of common stock and exercise of warrants, offset by the repayment of notes

Net cash used in financing activities was $347,000 for the three months ended March 31, 2021 related to the sale of common stock

and exercise of warrants, offset by the repayment of notes payable.

for the six months ended June 30, 2022 related to the sale of common stock and warrants, and from the exercise of warrants, offset by

the repayment of notes payable.

Net cash used in financing activities was $1,156,000 for the six months ended June 30, 2021 related to

the sale of common stock and exercise of warrants, offset by the repayment of notes payable.

Off-balance Sheet Arrangements

As of March 31, 2022, we did not have any relationships

As of June 30, 2022, we did not have any relationships

with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities,

35 unchanged sentences

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 2. Management’s Discussion and Analysis