What changed in this filing

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Item 2. Management’s Discussion and Analysis

2022-11-10 compared with 2022-08-12 · 167 added, 231 removed, 42 unchanged (90% of the section changed)

Management’s Discussion and Analysis of Financial

Condition and Results of Operations

Management’s Discussion and

Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

8 unchanged sentences

subsidiaries unless the context requires otherwise.

AIkido Pharma Inc.

was initially formed in 1967

and is currently a biotechnology company with a diverse portfolio of small-molecule anti-cancer therapeutics in development.

The Company’s

platform consists of patented technology from leading universities and researchers and our innovative therapeutic drug platform is currently

being advanced through strong collaborations with world-renowned educational institutions, including the University of Texas at Austin,

the University of Maryland, Baltimore and Wake Forest University.

Our diverse pipeline of therapeutics includes therapies for pancreatic

cancer, acute myeloid leukemia (“AML”) and acute lymphoblastic leukemia (“ALL”).

The Company is also developing

broad-spectrum antiviral compounds with the potential to inhibit replication of multiple viruses including Influenza virus, SARS-CoV (coronavirus),

MERS-CoV, Ebolavirus and Marburg virus.

The Company previously focused its efforts on

owning, developing, acquiring and monetizing intellectual property assets.

Since May 2016, the Company has received limited funds from

its intellectual property monetization.

In addition to its patent monetization efforts, since the fourth quarter of 2017, the Company

has been transitioning to focus its efforts as a technology and biotechnology development company.

These efforts have focused mainly on

biotechnology research and development.

Outside of the biotechnology space, the Company has

put capital into a series of small investments in private companies that are expected to go public in next 24 months.

These investments

include, but are not limited to, an investment in Tevva Motors, an electric truck producer, a space with recent Rivian Automotive (NASDAQ:

Additionally, the Company has invested in Kerna Health, a growing tele-health business with recurring revenue and large contract

backlog, as well an investment in Kaya Holding Corp., a holding company with a portfolio of wholly-owned subsidiaries focused on emerging

technologies and social networking for cannabis enthusiasts.

The Company’s investments now also include interests in privately-held

companies Discord, Inc., a social communications platform provider that is particularly popular

Thrasio, LLC, an aggregator of private brands of top Amazon businesses and direct-to-consumer brands;

Automation Anywhere,

a provider of business automation solutions, and Anduril Industries, Inc., a defense

products company.

As a result of the Company’s biotechnology

research development and associated investments and acquisitions, our business portfolio now focuses on the treatment of three different

cancers, including pancreatic cancer, AML and ALL.

DHA-dFdC, our pancreatic drug candidate developed at the University of Texas at Austin

(“UTA”), is a new compound that we hope will become the next generation of chemotherapy treatment for advanced pancreatic

DHA-dFdC is designed to overcome tumor cell resistance to current chemotherapeutic drugs and is well tolerated in preclinical

toxicity tests.

Preliminary studies have also indicated that DHA-dFdC inhibits pancreatic cancer cell growth in culture (up to 100,000-fold

more potent that gemcitabine, a current standard therapy), has documented efficacy against pancreatic tumors in a clinically relevant

transgenic mouse model and has demonstrated activities against other cancers, including leukemia, lung and melanoma.

Ultimately, we plan

to develop DHA-dFdC for oral and intravenous administration in a solid lipid nanoparticle carrier matrix, which has also been licensed

from UTA, and is intended to be a second-line treatment for advanced pancreatic cancer.

The Company has entered into an agreement with

Parimer Scientific, which is working with other third parties, to assist in researching, developing and optimizing the manufacturing process

of the active ingredient, formulating the dosage formulation and performing drug stability tests.

The Company’s license with UTA

(the “License”) is a royalty-bearing exclusive license that, unless terminated earlier, continues until the last date of expiration

or termination of the patent rights granted under the License (the “Patent Rights”).

With regard to DHA-dFdC, the Patent Rights

include two issued U.S.

Patents, several filed U.S.

patent applications and an application filed under the Patent Cooperation Treaty (“PCT”)

that is currently being prosecuted to secure rights in foreign countries.

So far, two patents have issued, U.S.

(the “684 Patent”) and U.S.

11,219,633 (the “633 Patent”), which contain claims covering the compound

Assuming all maintenance fees are timely paid, the 684 Patent is expected to expire on October 27, 2035 and the 633 Patent is

expected to expire on May 28, 2035.

The Company’s license with UTA also covers a U.S.

provisional patent application relating to

the solid lipid nanoparticle carrier matrix for the drug, which was filed on June 6, 2019.

In June of 2020, at the request of the Company,

UTA filed both a U.S.

non-provisional utility patent application as well as a PCT application relating to the lipid nanoparticle carrier

matrix claiming the June 6, 2019 priority date of the provisional application.

The PCT application has now entered the national phase

in Europe, China and India.

Patent prosecution on all pending patent applications is currently underway.

The Company is currently engaged

in research and development activities related to the manufacture of DHA-dFdC, which have thus far confirmed the critical chemical steps

required for the manufacturing and scalability of the process.

In collaboration with our contract manufacturing organization, Parimer

Scientific, we are currently optimizing the manufacturing procedure for DHA-dFdC.

Our manufacturing activities were initially delayed

several months due to COVID-19 because Parimer was recruited by the U.S.

and South Carolina governments to manufacture hand sanitizer

for use in hospitals.

For that reason, our manufacturing activities did not begin in earnest until the beginning of the third quarter

Once manufacturing began, shipping delays due to the pandemic further slowed progress.

Further delay resulted from the inherent

difficulty in producing scalable quantities of the key intermediate compound in the process.

Despite these delays, we now have successfully

replicated the synthesis as reported in the literature, have developed a new procedure for the production of the key intermediate on a

large scale, and are currently optimizing the procedure to ensure that incorporation of our new procedure into the overall manufacturing

process will result in levels of DHA-dFdC on an acceptably large scale.

In tandem, the Company will also develop the solid lipid nanoparticle

delivery system containing DHA-dFdC to optimize the manufacturing process for size and consistency of the particles.

We plan to then develop

the drug formulation for oral and intravenous delivery via the solid lipid nanoparticles for use in future animal testing.

We do not currently

have FDA approval, which will eventually be required to begin administering DHA-dFdC to patients as part of any clinical trials.

studies will be a necessary prerequisite to filing an Investigational New Drug Application (“IND”) with the FDA.

upon the success of the animal studies, the Company’s development activities will also include preparing the IND for submission

The Company’s formulation is a new chemotherapy oral dosage form “repurposing” the chemotherapeutic agent

gemcitabine, which we believe enables it to be developed for use in patients following a special regulatory pathway codified in Section

505(b)(2) of the FDA rules.

Section 505(b)(2) was enacted to enable sponsors to seek New Drug Application (“NDA”) approval

for novel repurposed drugs without the need for such sponsors to undertake certain time consuming and expensive safety studies.

under this regulatory pathway, we hope to be able to rely upon all of the publicly available safety and toxicology data with respect to

gemcitabine in our FDA submissions.

We believe that this path will dramatically reduce the required clinical development efforts, costs

and risks as compared to what would be required of us if we were required to conduct the entire scope of trials required for new chemical

entities that are not eligible to be reviewed pursuant to the Section 505(b)(2) regulatory pathway.

We estimate that by using the Section

505(b)(2) regulatory pathway, the clinical development process may be several years shorter than is required for a new chemical entity,

and the FDA approval process may be six to nine months shorter than the typical eighteen-month period, which we believe may result in

lower development costs and shorter development time.

As of the date hereof, we have not submitted an IND or an NDA to the FDA.

and ALL compounds, developed at Wake Forest University, are targeted therapeutics designed to overcome multiple resistance mechanisms

observed with the current standard of care.

In addition, we are constantly seeking to grow our pipeline to treat unmet medical needs in

In addition, the Company owns an exclusive world-wide

license to patented technology from the University of Maryland Baltimore (“UMB”).

Our license is for a broad-spectrum antiviral

drug platform.

The licensed technology is a broadly acting pan-viral inhibitory compound with efficacy against multiple viral pathogens.

The technology works to inhibit replication of multiple viruses including Influenza virus, SARS-CoV (coronavirus), MERS-CoV, Ebolavirus

and Marburg virus.

The technology is covered by two patent applications already on file with the United States Patent and Trademark Office.

The Company’s license covers two U.S.

provisional applications, which were consolidated and timely filed as a PCT application on

June 5, 2020, commencing patent prosecution.

Any patents issued from this application are expected to expire 20 years later, on June 5,

2040, unless the term is extended by the patent office.

The PCT application describing the technology to which the Company is licensed

was published on December 12, 2020 by the World Intellectual Property Organization under International Publication Number WO 2020/247860

The PCT application has now entered the national phase in the USPTO (U.S.

Application Serial No.

17/616,586) and is currently under

active prosecution.

The Company’s license has been amended to cover a second PCT application, which was published on June 9, 2022

by the World Intellectual Property Organization under International Publication Number WO 2022/120207 A1.

Currently, the Company and UMB

are collaborating to identify chemical structures that are as effective as, or more effective than, the lead compounds covered in the

PCT application.

The UMB inventors are Drs.

Matthew Frieman, Alexander MacKerell and Stuart Watson.

The Company has also executed a Sponsored

Research Agreement with UMB to support the development of the technology.

Effective March 23, 2020, and as amended and restated

on November 24, 2020, the Company and Continental Stock Transfer & Trust Co.

entered into a rights agreement (the “Rights Agreement”)

The Rights Agreement provides each stockholder of record a dividend distribution of one “right” for each outstanding share

of common stock.

Rights become exercisable at the earlier of ten days following:

(1) a public announcement that an acquirer has purchased

or has the right to acquire 4.99% or more of our common stock, in connection with, (x) the Company consolidating, or merging into any

other person, (y) any person consolidates or merges with or into the Company or (z) the Company sells or otherwise transfers to any person

or persons, in one or more transactions, assets or earning power aggregating 50% or more of the assets or earning power of the Company,

or (2) the commencement of a tender offer which would result in an offer or beneficially owning 10% or more of our outstanding common

All rights held by an acquirer or offer or expire on the announced acquisition date, and all rights expire at the close of business

on March 23, 2023, subject to further extension.

Each right entitles a stockholder to acquire, at a price of $5.00 per one one-thousandth

of a share of our Series A preferred stock, subject to adjustments, which carries voting and dividend rights similar to one share of our

common stock.

The purchase price of the preferred stock fractional amount is subject to adjustment for certain events as described in

the Rights Agreement.

At the discretion of a majority of the Board and within a specified time period, we may redeem all of the rights

at a price of $0.0001 per right.

The Board may also amend any provisions of the Rights Agreement prior to exercise.

Since 2017, we have operated as a biotechnology

company with a diverse portfolio of small-molecule anticancer and antiviral therapeutics in development.

Over the past year, in an effort

to enhance shareholder value, we have shifted our primary focus away from biotechnology to a new line of business in the fintech and financial

services industries.

In furtherance of this new focus, in June of this year we formed a wholly owned financial services subsidiary,

Dominari Financial Inc.

(“Dominari”), with the purpose of making strategic acquisitions across the fintech and financial services

Additionally, AIkido Labs, LLC (“Aikido Labs”), another wholly owned subsidiary, has and will continue to

explore other opportunities in high growth industries.

To date, Aikido Labs has acquired equity positions in Anduril Industries,

Inc, Databricks, Inc., Discord, Inc., Epic Games, Inc., Payward, Inc.

dba Kraken, Space Exploration Technologies Corp.

dba SpaceX, Tevva

Motors Ltd., Thrasio, LLC, and Yanka Industries, Inc.

dba Masterclass.

Finally, we will continue to foster and develop our historical

pipeline of biotechnology assets consisting of patented technology from leading universities and researchers, including prospective treatments

for pancreatic cancer, acute myeloid leukemia and acute lymphoblastic leukemia.

We are also developing a broad-spectrum antiviral

platform, in which the lead compounds have activity in cell-based assays against multiple viruses including Influenza virus, Ebolavirus

and Marburg virus, SARS-CoV, MERS-CoV, and SARS-CoV-2, the cause of COVID-19.

On September 9, 2022, Dominari entered into a

membership interest purchase agreement (the “FPS Purchase Agreement”) with Fieldpoint Private Bank & Trust (“Seller”),

a Connecticut bank, for the purchase of its wholly owned subsidiary, Fieldpoint Private Securities, LLC, a Connecticut limited liability

company (“FPS”) and broker-dealer registered with the Financial Industry Regulatory Authority (“FINRA”).

Pursuant to the terms of the FPS Purchase Agreement, Dominari will purchase from the Seller 100% of the membership interests in of

FPS (the “Membership Interests”) and, as a result thereof, will, thereafter, operate FPS’s registered broker-dealer

business as a wholly owned subsidiary.

The FPS Purchase Agreement provides for Dominari’s acquisition of FPS’s Membership

Interests in two closings, the first of which occurred on October 4, 2022 (the “Initial Closing”), at which Dominari

paid to the Seller $2,000,000 in consideration for a transfer by the Seller to Dominari of 20% of the Membership Interests.

Following the Initial Closing, FPS filed a continuing membership application requesting approval for a change of ownership, control, or

business operations with FINRA in accordance with FINRA Rule 1017 (the “Rule 1017 Application”).

approval of the Rule 1017 Application, the second closing will occur (the “Second Closing”), at which Dominari will pay to

the Seller an additional $1.00 in consideration for a transfer by the Seller to Dominari of the remaining 80% of the Membership Interests.

The Second Closing is subject to FINRA’s final approval under FINRA Rule 1017 as well as other customary closing conditions, including

the accuracy of the representations and warranties of the applicable parties under the FPS Purchase Agreement and compliance therewith.

Additionally, on October 17, 2022, we entered into an Amended and Restated Services Agreement with Kyle Wool, pursuant to which he has

agreed to serve as Dominari’s Chief Executive Officer, upon the termination of his existing relationship with another registered

broker-dealer and lead our transition to a fintech and financial services company.

Our anticipated

diversified financial platform may be affected by a variety of factors including the continuing impact of the COVID-19 pandemic, higher

inflation, the actions by the Federal Reserve to address inflation, the possibility of recession, Russia’s invasion of Ukraine, and rising

energy prices.

These factors create uncertainty about the future economic environment which will continue to evolve and may impact our

business in future periods.

These developments and the impact on the financial markets and the overall economy continue to be highly uncertain

and cannot be predicted.

If the financial markets and/or the overall economy continue to be impacted, our results of operations, financial

position, and cash flows may be materially adversely affected.

Critical Accounting Policies

1 unchanged sentence

in our annual report on Form 10K for the year ended December 31, 2021 and there have been no material changes to such policy or estimates

during the six months ended June 30, 2022.

during the nine months ended September 30, 2022.

Critical Accounting Estimates

8 unchanged sentences

estimates and the differences could be material.

See Note 2 to our condensed consolidated financial

statements for a discussion of our significant accounting policies.

See Note 2 to our unaudited condensed consolidated

financial statements for a discussion of our significant accounting policies.

Recently Issued Accounting Pronouncements

See Note 3 to the condensed consolidated financial

statements for a discussion of recent accounting standards.

See Note 3 to the unaudited condensed consolidated

financial statements for a discussion of recent accounting standards.

Results of Operations

Three months ended June 30, 2022 compared to

three months ended June 30, 2021

During the three months ended June 30, 2022, we

incurred a loss from operations of approximately $2.3 million, as compared to $2.8 million during the comparable prior year period.

decrease in loss was primarily attributed to $81,000 decrease in in general and administrative expenses, $0.3 million decrease research

and development expense, and $91,000 decrease in research and development expense related to development of our license technology.

During the three months ended June 30, 2022, other

expense was approximately $2.8 million as compared to other income of approximately $1.4 million during the comparable prior year period.

The increase in other expense was primarily attributed to a $0.3 million decrease in the change in fair value of investment and $4.0 million

increase in loss on marketable securities.

Six months ended June 30, 2022 compared to

six months ended June 30, 2021

During the six months ended June 30, 2022, we

incurred a loss from operations of approximately $6.1 million, as compared to $5.1 million during the comparable prior year period.

increase in loss was primarily attributed to $0.5 million increase in in general and administrative expenses and $1.7 million increase

research and development expense, and was partially offset by $1.1 million decrease in research and development expense related with license

During the six months ended June 30, 2022, other

expense was approximately $2.5 million as compared to other expense of approximately $0.2 million during the comparable prior year period.

The increase in other expense was primarily attributed to a $3.2 million decrease in loss on marketable securities, and was partially

offset by $0.7 million increase in the change in fair value of investment.

The 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

We had little or no revenue for the past two years.

Three months ended September 30, 2022 compared

to three months ended September 30, 2021

During the three months ended September 30, 2022,

we incurred a loss from operations of approximately $5.1 million, as compared to a loss of approximately $1.8 million for the comparable

period of the prior year.

The approximate $3.3 million increase in loss year-over-year was primarily attributable to (i) an approximate

$2.8 million increase in general and administrative expenses from approximately $1.7 million, during the three months ended September

2021, to approximately $4.5 million, for the same period in 2022, and (ii) an approximate $0.5 million increase in research and development

expenses from approximately $0.1 million, during the three months ending September 30, 2021, to approximately $0.6 million, for the same

period in 2022.

The increase in (i) was a result of approximately $1.4 million in expenses related to fully-vested restricted stock grants

issued to the members of the board of directors and executive officers and additional contractual and discretionary bonus expense of approximately

$0.6 million.

We also incurred approximately $1.0 million in legal and accounting advisory fees related to our transition into a financial

services business.

The increase in (ii) was primarily due to an additional payment under our license agreement with the University of

Maryland (“UM”) pursuant to which the UM granted us an exclusive, worldwide, royalty bearing license to certain intellectual

property to, among other things, discover, develop, make, have made, use and sell certain licensed products and sell, use and practice

certain licensed services with respect to the treatment of cancer.

During the three months ended September 30,

2022, other expense was approximately $1.1 million as compared to other income of approximately $1.7 million for the comparable prior

The activity for the three months ended September 30, 2022, as compared to the same period in the prior year, is a result

of an overall volatility in equity valuations due to macroeconomic uncertainty (i.e.

inflation, global tensions in the Ukraine, etc.)

impacting the change in fair value of investments and unrealized losses on marketable securities.

Specifically, we recognized $0.3 million

in change of fair value of investments for the three months ended September 30, 2022, which is reflective of volatility in equity valuations,

as stated above.

For the three months ended September 30, 2021, change in fair value of investments increased to $4.4 million primarily

as a result of our investment in DatChat, Inc.

(“DatChat”) which increased to $4.4 million following DatChat’s initial

public offering during July 2021.

Unrealized losses on marketable securities for the three months ended September 30, 2022, were $1.6

million, as compared to $3.0 million for the same period during the prior year, which was a result of continued volatility in equity-based

exchange traded funds.

Nine months ended September 30, 2022 compared

to nine months ended September 30, 2021

During the nine months ended September 30, 2022,

we incurred a loss from operations of approximately $11.2 million, as compared to approximately $6.9 million during the comparable prior

The approximate $4.3 million increase in loss was primarily attributable to (i) an approximate $3.3 million increase in general

and administrative expenses from approximately $5.2 million, during the nine months ended September 30, 2021, to approximately $8.5 million,

during the same period in 2022, (ii) an approximate $1.6 million increase in research and development expenses from approximately $0.5

million, during the nine months ended September 30, 2021, to approximately $2.1 million, during the same period in 2022, and (iii) an

approximate decrease of $0.6 million in research and development – license acquired from approximately $1.1 million, during the

nine months ended September 30, 2021, to approximately $0.5 million, during the same period in 2022, The increase in (i) was a result

of approximately $1.4 million in expenses related to fully-vested restricted stock grants issued to the members of the board of directors

and executive officers and additional contractual and discretionary bonus expense of approximately $0.6 million.

We also incurred approximately

$1.0 million in legal and accounting advisory fees related to our transition into a financial services business.

The increase in (ii)

was primarily due to an approximate $1.6 million increase in expense related to our continued development of a broad-spectrum antiviral

platform, in which the lead compounds have activity in cell-based assays against multiple viruses including the Influenza virus, Ebolavirus

and Marburg virus, SARS-CoV, MERS-CoV, and SARS-CoV-2, the cause of COVID-19.

The decrease in (iii) was primarily attributable to an approximate

$0.6 million decrease related to a one-time expense for restricted stock units issued in the prior year in relation to use of the license.

During the nine months ended September 30,

2022, other expense was approximately $3.6 million as compared to other income of approximately $1.5 million for the comparable prior

The activity for the nine months ended September 30, 2022, as compared to the same period in the prior year, is a result

of overall volatility in equity valuations due to macroeconomic uncertainty (i.e.

inflation, global tensions in the Ukraine, etc.) impacting

the change in fair value of investments and unrealized losses on marketable securities.

Specifically, we recognized $0.1 million in change

of fair value of investments for the nine months ended September 30, 2022, which is reflective of volatility in equity valuations, as

stated above.

For the nine months ended September 30, 2021, change in fair value of investments increased to $3.8 million primarily as

a result of our investment in DatChat which increased to $4.4 million following DatChat’s initial public offering during July 2021.

Unrealized losses on marketable securities for the nine months ended September 30, 2022, were $4.3 million, as compared to $2.6 million

for the same period during the prior year, which was a result of continued volatility in equity-based exchange traded funds.

Liquidity and Capital Resources

4 unchanged sentences

managing current cash and cash equivalents on hand from our past debt and equity offerings;

monetizing current and future strategic long-term investments;

seeking additional funds raised through the sale of additional securities in the future;

2 unchanged sentences

Our ultimate success is dependent on our ability

to obtain additional financing and generate sufficient cash flow to meet our obligations on a timely basis.

Our business will require

significant amounts of capital to sustain operations and make the investments it needs to execute its longer-term business plan to support

new technologies and help advance innovation.

Our working capital amounted to approximately $60.7 million at June 30, 2022.

to obtain additional debt or equity financing, especially if we experience downturns in our business that are more severe or longer than

anticipated, or if we experience significant increases in expense levels resulting from being a publicly-traded company or operations.

If we attempt to obtain additional debt or equity financing, we cannot assume that such financing will be available to the Company on

favorable terms, or at all.

The Company plans to pursue its plans regarding

research and development of our two pre-clinical products which will require resources beyond those currently, ultimately requiring third

party capital.

During this time, the Company does not expect to generate revenue and there is substantial doubt about the Company’s

ability to continue as a going concern within one year from the date of this filing.

The consolidated financial statements have been prepared

assuming that the Company will continue as a going concern, and do not include any adjustments to reflect the possible future effects

on the recoverability and classification of assets, or the amounts and classification of liabilities that may result from the outcome

of this uncertainty.

to obtain additional financing, monetize our long-term investments, and generate sufficient cash flow to meet our obligations on a timely

Our business will require significant amounts of capital to sustain operations and make the investments it needs to execute its

longer-term business plan to transition to a fintech and financial services business .

Our working was approximately $54.2 million at

September 30, 2022.

We may need to obtain additional debt or equity financing, especially if we experience downturns in our business that

are more severe or longer than anticipated, or if we experience significant increases in expense levels resulting from being a publicly-traded

company or operations.

If we attempt to obtain additional debt or equity financing, we cannot assume that such financing will be available

to the Company on favorable terms, or at all.

As a result of recent volatility and weakness in the public markets, due to, among other

factors, uncertainty in the global economy and financial markets, it may be much more difficult to raise additional capital, if and when,

it is needed, unless the public markets become less volatile and stronger at such time that we seek to raise additional capital.

are no known trends, demands, commitments, or events that will result in or that are reasonably likely to result in our

liquidity increasing or decreasing in any material way.

Cash Flows from Operating Activities -

For the six months ended June 30, 2022 and 2021, net cash used in operations was approximately $5.9 million and $2.7 million, respectively.

The cash used in operating activities for the three months ended June 30, 2022 primarily resulted from a net loss of $8.6 million and

change in fair value of long-term investment of $1.4 million and is partially offset by change in fair value of short-term investment

For the nine months ended September 30, 2022 and 2021, net cash used in operations was approximately $8.7 million and $4.6 million, respectively.

The cash used in operating activities for the nine months ended September 30, 2022 primarily resulted from a net loss of $14.9 million

and change in fair value of long-term investment of $1.6 million and is partially offset by change in fair value of short-term investment

of $1.5 million and unrealized loss on marketable securities of $3.9 million.

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

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.

Cash Flows from Investing Activities - For the

six months ended June 30, 2022 and 2021, net cash used in investing activities was approximately $15.3 million and $70.4 million, respectively.

The cash used in investing activities for the six months ended June 30, 2022 primarily resulted from our purchase of marketable securities

of $27.5 million, purchase of promissory notes of $1.6 million and purchase of investments of $14.6 million, partially offset by our sale

of marketable securities of $28.3 million since we invest excess cash into marketable securities until additional cash is needed.

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

nine months ended September 30, 2022 and 2021, net cash used in investing activities was approximately $16.0 million and $70.3 million,

respectively.

The cash used in investing activities for the nine months ended September 30, 2022 primarily resulted from our purchase

of marketable securities of $27.5 million, purchase of promissory notes of $1.6 million and purchase of investments of $15.0 million,

partially offset by our sale of marketable securities of $28.5 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, 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.

Cash Flows from Financing Activities - Cash

used in financing activities for the six months ended June 30, 2022 was $15.3 million, which reflects the cost for redemption of Series

O and Series P Redeemable Convertible Preferred Stock of $23.1 million and cost for purchase of treasury stock of $1.5 million, partially

offset by net proceeds of $19.0 million from investors in exchange of issuance of issuance of Series O and Series P Redeemable Convertible

Preferred Stock.

Cash provided by financing activities for the six months ended June 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.

used in financing activities for the nine months ended September 30, 2022 was $6.4 million, which reflects the cost for redemption of

Series O and Series P Redeemable Convertible Preferred Stock of $22.0 million and cost for purchase of treasury stock of $2.2 million,

partially offset by net proceeds of $17.9 million from investors in exchange of issuance of issuance of Series O and Series P Redeemable

Convertible Preferred Stock.

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.

Off-balance 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