What changed in this filing

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Item 2. Management’s Discussion and Analysis

2021-11-10 compared with 2021-08-11 · 58 added, 46 removed, 97 unchanged (52% of the section changed)

65 unchanged sentences

critical accounting policies are disclosed in our annual report on Form 10K for the year ended December 31, 2020 and there have been

no material changes to such policy or estimates during the six months ended June 30, 2021.

no material changes to such policy or estimates during the nine months ended September 30, 2021.

Issued Accounting Pronouncements

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of Operations

months ended June 30, 2021 compared to three months ended June 30, 2020

During the three months ended June 30, 2021,

we incurred a loss from operations of approximately $2.8 million, as compared to $1.8 million during the comparable prior year period.

The increase in loss was primarily attributed to $1.3 million increase in in general and administrative expenses, partially offset by

$0.4 million decrease research and development expense and $11,000 decrease in research and development expense related with license

the three months ended June 30, 2021, other income was approximately $1.4 million as compared to other expense

of approximately $0.5 million during the comparable prior year period.

The net loss per share decreased from a decrease in net operating

losses and a significant increase in the number of shares outstanding.

The decrease in other expense was primarily attributed to a $1.2

million lower loss in the change in fair value of investment in Hoth and $0.7 million increase in gains on marketable securities.

months ended September 30, 2021 compared to three months ended September 30, 2020

the three months ended September 30, 2021, we incurred a loss from operations of approximately $1.8 million, as compared to $1.0 million

during the comparable prior year period.

The increase in loss was primarily attributed to $0.9 million increase in in general and administrative

expenses, partially offset by $91,000 million decrease research and development expense and $38,000 decrease in research and development

expense related with license acquisition.

the three months ended September 30, 2021, other income was approximately $1.7 million as compared to other expense of approximately

$1.1 million during the comparable prior year period.

The net loss per share decreased from a decrease in net operating losses and a

significant increase in the number of shares outstanding.

The increase in other income was primarily attributed to a $5.3 million increase

in the change in fair value of investment in DatChat and a decrease in the change in fair value of investment in Hoth, and partially

offset by $2.6 million increase in loss on marketable securities.

Company experienced very little or no revenue in the last two years and we don’t expect any revenue until a biotechnology product

is fully developed which may not occur for many years.

months ended June 30, 2021 compared to six months ended June 30, 2020

During the six months ended June 30, 2021, we

incurred a loss from operations of approximately $5.1 million, as compared to a loss of $4.2 million during the comparable prior year

The increase in loss was primarily attributed to $1.2 million increase in general and administrative expenses, and $12,000 increase

in research and development expense related to the license acquisition, partially offset by $0.4 million decrease in research and development

the six months ended June 30, 2021, other expense was approximately $0.2 million as compared to approximately $6.5 million during the

comparable prior year period.

The decrease in other expense was primarily attributed to a $5.8 million lower loss in the change in fair

value of investment in Hoth and $0.2 million increase in gains on marketable securities.

The net loss per share decreased from a decrease

in net operating losses and a significant increase in the number of shares outstanding.

months ended September 30, 2021 compared to nine months ended September 30, 2020

the nine months ended September 30, 2021, we incurred a loss from operations of approximately $6.9 million, as compared to a loss of

$5.2 million during the comparable prior year period.

The increase in loss was primarily attributed to $2.2 million increase in general

and administrative expenses, and partially offset by $0.5 million decrease in research and development expense $26,000 decrease in research

and development expense related to the license acquisition.

the nine months ended September 30, 2021, other income was approximately $1.5 million as compared to other expense of approximately $7.5

million during the comparable prior year period.

The net loss per share decreased from a decrease in net operating losses and a significant

increase in the number of shares outstanding.

The increase in other income was primarily attributed to a $11.2 million increase in the

change in fair value of investment in DatChat, decrease in the change in fair value of investment in Hoth, and partially offset by $2.4

million increase in loss on marketable securities.

Company experienced very little or no revenue in the last two years and we don’t expect any revenue until a biotechnology product

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implement our business strategy, we intend to finance our activities through managing current cash on hand from our past equity offerings.

the six months of 2021, the Company consummated a public offering of 53,905,927 shares of common stock (including the underwriter overallotment).

the nine months of 2021, the Company consummated a public offering of 53,905,927 shares of common stock (including the underwriter overallotment).

The Company received net proceeds of approximately $78.0 million after deducting underwriting discounts and commissions and estimated

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The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Cash Flows from Operating Activities -

For the six months ended June 30, 2021 and 2020, net cash used in operations was approximately $2.7 million and $2.4 million, respectively.

The cash used in operating activities for the six months ended June 30, 2021 primarily resulted from a net loss of $5.3 million and $1.1

million realized gain on marketable securities, and partially offset by $1.4 million unrealized loss on marketable securities and $1.1

million research and development expense related with license acquired.

The cash used in operating activities for the six months ended

June 30, 2020 primarily resulted from a net loss of $10.6 million, and partially offset by the reduction in fair value of investment of

$6.7 million and $1.1 million research and development expense related with license required.

Cash Flows from Investing Activities -

For the six months ended June 30, 2021 and 2020, net cash used in investing activities was approximately $70.4 million and $26.5 million,

respectively.

The cash used in investing activities for the six months ended June 30, 2021 primarily resulted from our purchase of marketable

securities of $86.5 million, funds to deposit accounts of $4.5 million (net of fee) and purchase of convertible note of $2.0 million,

partially offset by our sale of marketable securities of $23.2 million since we invest excess cash into marketable securities until additional

cash is needed.

The cash used in investing activities for the six months ended June 30, 2020 primarily resulted from our purchase of marketable

August 10, 2021, the Company received a staff deficiency notice from The Nasdaq Stock Market (“Nasdaq”) informing the Company

that its common stock failed to comply with the $1.00 minimum bid price required for continued listing on The Nasdaq Capital Market under

Nasdaq Listing Rule 5550(a)(2).

Nasdaq’s letter advised the Company that, based upon the closing bid price during the period from

June 28, 2021 to August 9, 2021, the Company no longer meets this test.

to Nasdaq Marketplace Rule 5810(c)(3)(A), the Company has been provided with a compliance period of 180 calendar days, or February 7,

2022, to regain compliance with the minimum bid price requirement.

To regain compliance, the closing bid price of the Company’s

common stock must meet or exceed $1.00 per share for a minimum of 10 consecutive business days prior to February 7, 2022.

Flows from Operating Activities - For the nine months ended September 30, 2021 and 2020, net cash used in operations was approximately

$4.6 million and $3.6 million, respectively.

The cash used in operating activities for the nine months ended September 30, 2021 primarily

resulted from a net loss of $5.4 million and change in fair value of investment of $3.8 million, and partially offset by $4.3 million

unrealized loss on marketable securities and $1.1 million research and development expense related with license acquired.

The cash used

in operating activities for the nine months ended September 30, 2020 primarily resulted from a net loss of $12.7 million, and partially

offset by reduction in fair value of investment of $7.4 million and $1.2 million research and development expense related with license

Flows from Investing Activities - For the nine months ended September 30, 2021 and 2020, net cash used in investing activities was

approximately $70.3 million and $27.2 million, respectively.

The cash used in investing activities for the nine months ended September

30, 2021 primarily resulted from our purchase of marketable securities of $90.5 million, funds to deposit accounts of $4.4 million (net

of fee), purchase of investments at fair value of $4.1 million and purchase of convertible note of $2.0 million, partially offset by

our sale of marketable securities of $30.4 million since we invest excess cash into marketable securities until additional cash is needed.

The cash used in investing activities for the nine months ended September 30, 2020 primarily resulted from our purchase of marketable

securities of $98.5 million and research and development expense related with license acquired of $1.2 million, partially offset by our

purchase of marketable securities of $52.2 million since we invest excess cash into marketable securities until additional cash is needed.

Flows from Financing Activities - Cash provided by financing activities for the six months ended June 30, 2021 was $78.1 million,

sale of marketable securities of $72.0 million since we invest excess cash into marketable securities until additional cash is needed.

Flows from Financing Activities - Cash provided by financing activities for the nine months ended September 30, 2021 was $78.1 million,

which reflects the net proceeds of $78.0 million from investors in exchange of issuance of common stock and warrants and net proceeds

of $84,000 from the exercise of common warrants.

Cash provided by financing activities for the six months ended June 30, 2020 was $31.6

million, which reflects the net proceeds of $6.6 from investors in exchange of issuance of common stock, common warrants and prefunded

warrants, net proceeds of $17.8 from investors in exchange of issuance of common stock, and net proceeds of $7.2 million from the exercise

of common warrants and prefunded warrants

Cash provided by financing activities for the nine months ended September 30, 2020 was

$31.6 million, which reflects the net proceeds of $6.6 million from investors in exchange of issuance of common stock, common warrants

and prefunded warrants, net proceeds of $17.8 million from investors in exchange of issuance of common stock, and net proceeds of $7.2

million from the exercise of common warrants and prefunded warrants.

sheet arrangements.

2 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