What changed in this filing

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Item 1. Financial Statements

2024-11-12 compared with 2024-08-13 · 243 added, 172 removed, 315 unchanged (57% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

September 30,

Current assets:

Prepaid expenses, receivables and other

Prepaid expenses and other

Total current assets

9 unchanged sentences

Series B, $ 0.001 par value:

1,804,394 shares issued and outstanding as of June 30, 2024 and December 31, 2023

1,804,394 shares issued and outstanding as of September 30, 2024 and December 31, 2023

Common stock, $ 0.001 par value;

10,000,000 shares authorized as of June 30, 2024 and December 31, 2023;

1,543,802 and 1,543,385 shares issued as of June 30, 2024 and December 31, 2023, respectively;

1,541,101 and 1,540,684 shares outstanding as of June 30, 2024 and December 31, 2023, respectively

10,000,000 shares authorized as of September 30, 2024 and December 31, 2023;

1,544,840 and 1,543,385 shares issued as of September 30, 2024 and December 31, 2023, respectively;

1,542,139 and 1,540,684 shares outstanding as of September 30, 2024 and December 31, 2023, respectively

Additional paid in capital

4 unchanged sentences

Treasury stock

( 5,281,180 )

Total stockholders' equity

5 unchanged sentences

THREE MONTHS ENDED

SIX MONTHS ENDED

SEPTEMBER 30,

NINE MONTHS ENDED

SEPTEMBER 30,

Royalty revenue

4 unchanged sentences

( 2,246,077 )

General and administrative

( 2,519,137 )

General and administrative

( 2,710,670 )

9 unchanged sentences

( 3,260,048 )

( 2,113,363 )

Other income (expense):

Other (expense) income

Other income (expense)

Interest income, net

Total other income

Total other income, net

$ ( 436,671 )

9 unchanged sentences

IN STOCKHOLDERS' EQUITY

THREE MONTHS ENDED JUNE 30, 2024

Comprehensive

Stockholders'

Balance as of April

THREE MONTHS ENDED SEPTEMBER 30, 2024

Preferred Stock

Accumulated Other

Number of Shares

Par Value ($0.001)

Number of Shares

Par Value ($0.001)

Paid in Capital

Accumulated Deficit

Comprehensive Income

Treasury Stock

Stockholders' Equity

Balance as of July 1, 2024

$ 208,173,105

1 unchanged sentence

$ ( 5,281,180 )

Issuance of common stock in connection

with restricted stock

Exercise of purchase warrants

Share-based expense

( 1,273,970 )

of June 30, 2024

Balance as of September 30, 2024

$ 208,200,640

1 unchanged sentence

$ ( 5,281,180 )

SIX MONTHS ENDED JUNE 30, 2024

Value ($0.001)

Comprehensive

Stockholders'

NINE MONTHS ENDED SEPTEMBER 30, 2024

Preferred Stock

Accumulated Other

Number of Shares

Par Value ($0.001)

Number of Shares

Par Value ($0.001)

Paid in Capital

Accumulated Deficit

Comprehensive Income

Treasury Stock

Stockholders' Equity

Balance as of January 1, 2024

2 unchanged sentences

$ ( 5,281,180 )

Issuance of common stock in connection

with restricted stock

Exercise of purchase warrants

Issuance of common stock in connection with restricted stock

Share-based expense

1 unchanged sentence

( 2,905,754 )

of June 30, 2024

Balance as of September 30, 2024

$ 208,200,640

6 unchanged sentences

IN STOCKHOLDERS' EQUITY

THREE MONTHS ENDED JUNE 30, 2023

Value ($0.001)

Comprehensive

THREE MONTHS ENDED SEPTEMBER 30, 2023

Preferred Stock

Accumulated Other

Number of Shares

Par Value ($0.001)

Number of Shares

Par Value ($0.001)

Paid in Capital

Accumulated Deficit

Comprehensive Income

Treasury Stock

Stockholders' Equity

Balance as of April

Balance as of July 1, 2023

$ 207,908,129

1 unchanged sentence

$ ( 5,281,180 )

Issuance of common stock to adjust

for reverse split rounding

Share-based expense

1 unchanged sentence

( 1,055,555 )

of June 30, 2023

Balance as of September 30, 2023

$ 207,978,395

1 unchanged sentence

$ ( 5,281,180 )

SIX MONTHS ENDED JUNE 30, 2023

Value ($0.001)

Comprehensive

Stockholders'

NINE MONTHS ENDED SEPTEMBER 30, 2023

Preferred Stock

Accumulated Other

Number of Shares

Par Value ($0.001)

Number of Shares

Par Value ($0.001)

Paid in Capital

Accumulated Deficit

Comprehensive Income

Treasury Stock

Stockholders' Equity

Balance as of January 1, 2023

2 unchanged sentences

$ ( 5,281,180 )

Issuance of common stock to adjust

for reverse split rounding

Issuance of common stock to adjust for reverse split rounding

Share-based expense

1 unchanged sentence

( 2,963,072 )

of June 30, 2023

Balance as of September 30, 2023

$ 207,978,395

5 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended June 30,

Nine Months Ended September 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

4 unchanged sentences

Changes in operating assets and liabilities:

Prepaid expenses, receivables and other

Prepaid expenses and other

Accounts payable, accrued expenses and other liabilities

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Going Concern and Management’s Plan

Management evaluates whether there are

conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a

going concern within one year after the date that the financial statements are issued.

The Company has incurred substantial losses

since its inception and expects to continue to incur operating losses in the near-term.

The Company believes that its existing

resources will be adequate to fund the Company’s operations for a period of at least twelve months from the date of the

issuance of these financial statements.

However, the Company anticipates it will need additional capital in the long-term to pursue

its business initiatives.

While the Company believes it has access to capital resources through possible public or private equity

offerings, debt financings, corporate collaborations, related party funding, or other means to continue as a going concern, the

terms, timing and extent of any future financing will depend upon several factors, including the achievement of progress in its

product development programs, its ability to identify and enter into licensing or other strategic arrangements, its continued

listing on the Nasdaq Stock Market (“Nasdaq”), and factors related to financial, economic, geo-political, industry and

market conditions, many of which are beyond its control.

The capital markets for the biotech industry can be highly volatile, which

make the terms, timing and extent of any future financing uncertain.

Management evaluates whether there are conditions

or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern

within one year after the date that the financial statements are issued.

The Company has incurred substantial losses since its inception

and expects to continue to incur operating losses in the near-term.

The Company believes that its existing resources will be adequate

to fund the Company’s operations for a period of at least twelve months from the date of the issuance of these condensed consolidated

financial statements.

However, the Company anticipates it will need additional capital in the long-term to pursue its business initiatives.

While the Company believes it has access to capital resources through possible public or private equity offerings, debt financings, corporate

collaborations, related party funding, or other means to continue as a going concern, the terms, timing and extent of any future financing

will depend upon several factors, including the achievement of progress in its product development programs, its ability to identify and

enter into licensing or other strategic arrangements, its continued listing on the Nasdaq Stock Market (“Nasdaq”), and factors

related to financial, economic, geo-political, industry and market conditions, many of which are beyond its control.

The capital markets

for the biotech industry can be highly volatile, which make the terms, timing and extent of any future financing uncertain.

Risks and Uncertainties

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The short and long-term

implications of Russia’s invasion of Ukraine and conflict in the Middle East are difficult to predict at this time.

The imposition

of current and future sanctions and counter sanctions may have an adverse effect on the economic markets generally and could impact our

business, financial condition, and results of operations.

implications of the conflicts in the Ukraine and Middle East are difficult to predict at this time.

The imposition of current and future

sanctions and counter sanctions may have an adverse effect on the economic markets generally and could impact our business, financial

condition, and results of operations.

Summary of Significant Accounting Policies

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that are outstanding during the period, except where such non-participating securities would be anti-dilutive.

For the three and six months ended June 30, 2024

and 2023, basic and diluted net loss per share are the same in each respective period due to the Company’s net loss position.

dilutive, non-participating securities have not been included in the calculations of diluted net loss per share, as their inclusion would

be anti-dilutive.

For the three and nine months ended September

30, 2024 and 2023, basic and diluted net loss per share are the same in each respective three and nine month period due to the Company’s

net loss position.

Potentially dilutive, non-participating securities have not been included in the calculations of diluted net loss per

share, as their inclusion would be anti-dilutive.

Recent Accounting Pronouncements Not Yet

Segment Reporting - Improving Reportable Segment

Disclosures (Topic 280).

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards

Update (“ASU”) No.

2023-07, to improve reportable segment disclosure requirements, primarily through enhanced disclosures

about significant expenses.

Under this ASU, a company is required to enhance its segment disclosures to include significant segment expenses

that are regularly provided to the chief operating decision maker (CODM), a description of other segment items by reportable segment,

and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources.

This ASU also requires

all annual disclosures currently required by Topic 280 to be included in interim periods.

This ASU is effective for the Company's fiscal

year ending December 31, 2024, and interim periods beginning in fiscal 2025, with early adoption permitted, and requires retrospective

application to all prior periods presented in the financial statements.

The Company has one reportable segment and is currently evaluating

the effects that the adoption of this ASU will have on its consolidated financial statements.

Income Taxes - Improvements to Income Tax Disclosures

(Topic 740) .

In December 2023, the FASB issued ASU No.

2023-09, to improve income tax disclosure requirements, primarily through enhanced

disclosures related to the income tax rate reconciliation and income taxes paid.

This ASU is effective for fiscal 2025, with early adoption

permitted, and may be applied retrospectively.

The Company is currently evaluating the effects that the adoption of this ASU will have

on its consolidated financial statements.

Significant Strategic Collaborations

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Royalty payments

of approximately $ 0.7 million and $ 1.2 million were recorded as revenue by the Company during the three and six months ended June 30,

2024, respectively, and approximately $ 0.7 million and $ 1.3 million were recorded as revenue by the Company during the three and six months

ended June 30, 2023, respectively.

of approximately $ 0.6 million and $ 1.9 million were recorded as revenue by the Company during both the three and nine months ended September

30, 2024 and 2023, respectively.

These payments are based on single digit royalties on net sales of certain covered products.

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The Company has paid Catalent approximately

$ 2.5 million through June 30, 2024, of which approximately $ 28,000 and $ 0.1 million has been recognized as an advance payment and is included

in prepaid expenses, receivables and other current assets as of June 30, 2024 and December 31, 2023, respectively, and approximately $ 49,000

has been recognized as a liability and is included in accrued expenses and other current liabilities as of June 30, 2024.

accrual as of December 31, 2023.

In addition, approximately $ 0.3 million has been recognized within other assets as of both June 30, 2024

and December 31, 2023.

$ 2.5 million through September 30, 2024, of which approximately $ 28,000 and $ 0.1 million has been recognized as an advance payment and

is included in prepaid expenses and other current assets as of September 30, 2024 and December 31, 2023, respectively, and approximately

$ 0.1 million has been recognized as a liability and is included in accrued expenses and other current liabilities as of September 30,

There was no accrual as of December 31, 2023.

In addition, approximately $ 0.3 million has been recognized within other assets as

of both September 30, 2024 and December 31, 2023.

Scripps Research Institute (“Scripps

7 unchanged sentences

the performance of the research program contemplated by the Agreement.

During the second quarter of 2024, the Company amended the

Agreement to extend the term to October 31, 2024 with no additional funding required.

The Company has paid Scripps Research approximately

$ 0.9 million under the Agreement through June 30, 2024, of which approximately $ 0.1 million and $ 0.4 million has been recognized as an

advance payment and is included in prepaid expenses, receivables and other current assets as of June 30, 2024 and December 31, 2023, respectively.

During the second quarter of 2024, the Company amended the Agreement

to extend the term to October 31, 2024 with no additional funding required.

The Company paid Scripps Research approximately $ 0.9 million

under the Agreement through September 30, 2024, of which approximately $ 20,000 and $ 0.4 million has been recognized as an advance payment

and is included in prepaid expenses and other current assets as of September 30, 2024 and December 31, 2023, respectively.

University of Virginia (“UVA”)

8 unchanged sentences

the UVA Agreement.

The Company has paid UVA approximately $ 0.2 million under the UVA Agreement through June 30, 2024, which was

expensed during the six months ended June 30, 2024.

The Company paid UVA approximately $ 0.2 million under the UVA Agreement through September 30, 2024, which was

expensed during the nine months ended September 30, 2024.

There were no amounts incurred as of December 31, 2023.

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The Company and its collaborative partners continue

to engage in research and development activities with no resultant commercial products through June 30, 2024.

to engage in research and development activities with no resultant commercial products through September 30, 2024.

No amounts were recognized

as revenue related to the Serum Institute, Pharmsynthez or SynBio agreements during the three and six months ended June 30, 2024 and 2023,

respectively.

as revenue related to the Serum Institute, Pharmsynthez or SynBio agreements during the three and nine months ended September 30, 2024

and 2023, respectively.

Accrued Expenses and Other Current Liabilities

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Eisenberg, the Company’s former Chief Executive Officer (the “Eisenberg

Separation Agreement”), and Curtis Lockshin, the Company’s former Chief Scientific Officer (the “Lockshin Separation

Agreement” and together, the “Separation Agreements”) pursuant to which Messrs.

Eisenberg and Lockshin were each eligible

for certain severance payments and benefits consistent with the terms of their existing employment agreements as described under “Employment

Agreements with our Named Executive Officers” in the Amendment No.

1 to Annual Report on Form 10-K/A filed by the Company with the

Securities and Exchange Commission on April 26, 2024.

In addition, the Eisenberg Separation Agreement provides for accelerated vesting

of all of the unvested stock options held by Mr.

Eisenberg as of May 16, 2024.

As of June 30, 2024, the Company expensed approximately

$ 0.8 million of accrued payroll and benefits related to the Separation Agreements.

In addition, the Company recorded approximately $ 13,000

of share-based expense for the accelerated vesting of unvested stock options.

As of June 30, 2024, approximately $ 0.8 million was accrued

within accrued expenses and other current liabilities related to these obligations.

Separation Agreement”), and Curtis Lockshin, the Company’s former Chief Scientific Officer (together, the “Separation

Agreements”) pursuant to which Messrs.

Eisenberg and Lockshin were each eligible for certain severance payments and benefits consistent

with the terms of their existing employment agreements as described under “Employment Agreements with our Named Executive Officers”

in the Amendment No.

1 to Annual Report on Form 10-K/A filed by the Company with the Securities and Exchange Commission on April 26, 2024.

In addition, the Eisenberg Separation Agreement provided for accelerated vesting of all of the unvested stock options held by Mr.

as of May 16, 2024.

During the nine months ended September 30, 2024, the Company expensed approximately $ 0.8 million of accrued payroll

and benefits related to the Separation Agreements.

In addition, the Company recorded approximately $ 13,000 of share-based expense for

the accelerated vesting of unvested stock options.

As of September 30, 2024, approximately $ 0.3 million was accrued within accrued expenses

and other current liabilities related to these obligations.

Fair Value Measurements

12 unchanged sentences

for the asset or liability at the measurement date.

As of June 30, 2024 and December 31, 2023, the carrying amounts of the Company’s

As of September 30, 2024 and December 31, 2023, the carrying amounts of the Company’s

financial instruments approximates fair value due to their short maturities.

There were no financial instruments classified as Level 3

in the fair value hierarchy during the three and six months ended June 30, 2024 and 2023.

in the fair value hierarchy during the three and nine months ended September 30, 2024 and 2023.

Stockholders’ Equity

12 unchanged sentences

has warrants to purchase approximately 462,963 shares of the Company’s common stock (the “Series A Warrants”) outstanding

as of both June 30, 2024 and December 31, 2023.

The Series A Warrants are immediately exercisable at a price of $ 33.00 per share of common

stock and expire on February 23, 2025 .

No Series A Warrants were exercised or forfeited during the three and six months ended June 30,

as of both September 30, 2024 and December 31, 2023, which expire on February 23, 2025.

The Series A Warrants are immediately exercisable

at a price of $ 33.00 per share of common stock.

No Series A Warrants were exercised or forfeited during the three and nine months ended

September 30, 2024 and 2023.

The Company also has warrants to purchase approximately

800 shares of the Company’s common stock outstanding as of both September 30, 2024

and December 31, 2023, which expire on July 3, 2026 .

These warrants have an exercise price

of $ 29.09 per share of common stock.

None of these warrants were exercised or forfeited during the three and nine months ended September

30, 2024 and 2023.

In addition, the Company had publicly traded

warrants to purchase approximately 2,100

shares of common stock outstanding as of both June 30, 2024 and December 31, 2023.

In addition, the Company had publicly traded warrants

to purchase approximately 2,100 shares of common stock outstanding as of December 31, 2023.

These warrants had an exercise price of $ 130.00

per share of common stock and expired on July 19, 2024 .

The warrants ceased trading on Nasdaq under the symbol “XBIOW” upon expiration.

The warrants also provided that

if the weighted-average price of common stock on any trading day on or after 30 days after issuance is lower than the

then-applicable exercise price per share, each warrant may be exercised, at the option of the holder, on a cashless basis for one

share of common stock.

of these warrants were exercised or forfeited during the three and six months ended June 30, 2024 and 2023.

The Company also has warrants to purchase approximately 800 shares

of the Company’s common stock outstanding as of both June 30, 2024 and December 31,

These warrants have an exercise price of $ 29.09 per share of common stock and expire on July 3, 2026 .

None of these warrants were

exercised or forfeited during the three and six months ended June 30, 2024 and 2023.

The warrants ceased trading on Nasdaq under the symbol “XBIOW” upon

The warrants also provided that if the weighted-average price of common stock on any trading day on or after 30 days after

issuance is lower than the then-applicable exercise price per share, each warrant may be exercised, at the option of the holder, on a

cashless basis for one share of common stock, as adjusted for the Reverse Stock Split.

Warrants to purchase approximately 1,038 shares

of common stock were exercised on a cashless, one-for-one basis during the three and nine months ended September 30, 2024.

public warrants remaining outstanding as of July 19, 2024 expired, and no public warrants were outstanding at September 30, 2024.

of these warrants were exercised or forfeited during the three and nine months ended September 30, 2023.

Share-Based Expense

Total share-based expense related to stock options

and RSU’s was approximately $42,000 and $0.1 million for the three months ended June 30, 2024 and 2023, respectively, and approximately

$0.1 million and $0.1 million for each of the six months ended June 30, 2024 and 2023.

and RSUs was approximately $28,000 and $0.1 million for the three months ended September 30, 2024 and 2023, respectively, and approximately

$0.1 million and $0.2 million for each of the nine months ended September 30, 2024 and 2023.

Share-based expense is classified in the condensed consolidated statements

of operations as follows:

Schedule of share-based compensation expense

Three Months Ended June 30,

Six Months Ended June 30,

Schedule of share-based expense

Three Months Ended September 30,

Nine Months Ended September 30,

Research and development expenses

General and administrative expenses

Employee Stock Options and RSU’s

During the three and six months ended June 30,

Employee Stock Options and RSUs

During the nine months ended September 30,

stock options to purchase shares of common stock were granted by the Company.

No stock option awards to purchase shares of

common stock were granted during the three and six months ended June 30, 2023.

No RSUs were granted during each of the three and six months

ended June 30, 2024 and 2023.

The Company recognized a total of approximately $ 42,000 and $ 0.1 million of share-based expense related

to employee stock options during the three months ended June 30, 2024 and 2023, respectively, and $ 0.1 million during each of the six

months ended June 30, 2024 and 2023, respectively.

The Company issued 417 shares of common stock during the three and six months ended

June 30, 2024 related to RSU’s.

No employee stock options were exercised during the three and six months ended June 30, 2024 and

During the three and six months ended June 30, 2024 stock options to purchase 11,667 shares of common stock were forfeited.

stock options expired during the three and six months ended June 30, 2023.

stock options to purchase shares of common stock were granted during the three months ended September 30, 2024.

stock option awards to purchase shares of common stock were granted during the three and nine months ended September 30, 2023.

RSUs were granted during each of the three and nine months ended September 30, 2024 and 2023.

The Company recognized a total of

approximately $ 28,000

million of share-based expense related to employee stock options during the three months ended September 30, 2024 and 2023,

respectively, and $ 0.1

million and $ 0.2

million during the nine months ended September 30, 2024 and 2023, respectively.

The Company issued 417

shares of common stock during the nine months ended September 30, 2024 related to RSUs representing all the RSUs outstanding.

result, no RSUs were outstanding at September 30, 2024.

employee stock options were exercised during the three and nine months ended September 30, 2024 and 2023.

During each of the three

and nine months ended September 30, 2024 stock options to purchase 20,847

shares of common stock were cancelled and, during the nine months ended September 30, 2024, stock options to purchase 11,667

shares of common stock were forfeited.

employee stock options expired during the three and nine months ended September 30, 2023.

Non-Employee Stock Options

There were no non-employee stock options granted

or exercised during the three and six months ended June 30, 2024 and 2023, respectively.

No non-employee stock option grants expired during

the three and six months ended June 30, 2024.

During the six months ended June 30, 2023, non-employee stock option grants to purchase

approximately 100 shares of common stock expired.

The Company did not recognize any expense related to non-employee stock options during

the three and six months ended June 30, 2024 and 2023, respectively.

During the three and six months ended June 30,

or exercised during the three and nine months ended September 30, 2024 and 2023, respectively.

No non-employee stock option grants expired

during the three and nine months ended September 30, 2024.

During the nine months ended September 30, 2023, non-employee stock option

grants to purchase approximately 100 shares of common stock expired.

The Company did not recognize any expense related to non-employee

stock options during the three and nine months ended September 30, 2024 and 2023, respectively.

During the three and nine months ended September

30, 2024 and 2023, there was no provision for income taxes as the Company incurred losses during both periods.

Deferred tax assets and liabilities

reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes

and the amounts used for income tax purposes.

The Company records a valuation allowance against its deferred tax assets as the Company

believes it is more likely than not the deferred tax assets will not be realized.

The valuation allowance against deferred tax assets

was approximately $ 40.4 million and $ 39.7 million as of June 30, 2024 and December 31, 2023, respectively.

As of June 30, 2024 and December 31, 2023,

Deferred tax assets and

liabilities reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting

purposes and the amounts used for income tax purposes.

The Company records a valuation allowance against its deferred tax assets as the

Company believes it is more likely than not the deferred tax assets will not be realized.

The valuation allowance against deferred tax

assets was approximately $ 40.6 million and $ 39.7 million as of September 30, 2024 and December 31, 2023, respectively.

As of September 30, 2024 and December 31,

2023, the Company did no t record any unrecognized tax positions.

11 unchanged sentences

and was secured by all of the common and preferred stock of the Company owned by Pharmsynthez and SynBio.

Pharmsynthez paid

all obligations due under the Pharmsynthez Loan in May 2023, and no further amounts are due under the Pharmsynthez Loan.

result, no amounts

were outstanding as of June 30, 2024 and December 31, 2023.

The Company did not recognize any interest income related to the

Pharmsynthez Loan during the three and six months ended June 30, 2024.

The Company recognized approximately $ 65,000 of

income related to interest and fees associated with the Pharmsynthez Loan including approximately $ 40,000 related

to interest income during the three and six months ended June 30, 2023.

Pharmsynthez paid all

obligations due under the Pharmsynthez Loan in May 2023, and no further amounts are due under the Pharmsynthez Loan.

As a result, no amounts

were outstanding as of September 30, 2024 and December 31, 2023.

The Company did not recognize any interest income related to the Pharmsynthez

Loan during the three and nine months ended September 30, 2024.

The Company recognized approximately $ 65,000 of income related to interest

and fees associated with the Pharmsynthez Loan including approximately $ 40,000 related to interest income during the nine months ended

September 30, 2023.

Subsequent Events

The Company performed a review of events subsequent

to the balance sheet date through the date the financial statements were issued and determined that there were no such events requiring

recognition or disclosure in the financial statements except as described below.

Scripps Research

On November 1, 2024, the Company and Scripps entered

into a Second Amendment to Research Funding and Option Agreement (the “Amendment”), pursuant to which the Company amended

that certain Research Funding and Option Agreement, dated March 17, 2023, by and between the Company and Scripps (the “Original

Agreement”), in order to extend the term of the Original Agreement for an additional twelve (12) month period and to provide Scripps

Research additional funding in an aggregate amount of up to approximately $400,000 to fund continuing research relating to advancing the

pre-clinical development of the Company’s DNase oncology platform technology.

The research funding is payable by the Company to

Scripps Research on a monthly basis in accordance with a negotiated budget, which provides for an initial payment of approximately $65,000

on the date of the Amendment and subsequent monthly payments of approximately $65,000 over a 5-month period.

All other terms of the Original

Agreement remain unchanged.

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