Quarterly report pursuant to Section 13 or 15(d)

RESTATEMENT OF PRIOR FINANCIAL STATEMENTS

RESTATEMENT OF PRIOR FINANCIAL STATEMENTS

9 Months Ended

Sep. 30, 2021

RESTATEMENT OF PRIOR FINANCIAL STATEMENTS

NOTE 2 - RESTATEMENT OF PRIOR FINANCIAL STATEMENTS

NOTE 2 – RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

The Company has restated its previously issued condensed consolidated financial statements as of and for the three and nine month periods ended September 30, 2021. The restatement reflects the correction of errors relating to the accounting for the Participation Agreements entered into between April 13, 2020 through May 14, 2021. The Participation Agreements should be accounted for as a research and development agreement in accordance with ASC 730-20, Research and Development – Research and Development Arrangements. ASC 730 directs the balance of funds to be considered a liability as an obligation to perform services. As such, this liability should be amortized when research and development expenses associated with the Participation Agreements are incurred as an offset to research and development expenses. The error resulted in the overstatement of the Company’s total current liabilities, total stockholders’ deficit, research and development expense, net loss, and basic and diluted net loss per share.

The following table summarizes the effect of the corrections on the condensed consolidated balance sheet as of September 30, 2021:

	As of September 30, 2021
	As Reported			Adjustment			As Restated

Deferred Revenue - Participation Agreements	$	2,031,103		$	(2,031,103	)	$	-
Deferred R&D Obligations - Participation Agreements		-			1,681,004			1,681,004
Total Current Liabilities		3,547,660			(350,099	)		3,197,561
Total Liabilities		3,551,060			(350,099	)		3,200,961
Accumulated deficit		(105,062,742	)		350,099			(104,712,643	)
Total Stockholders' Equity (Deficit)		7,420,530			350,099			7,770,629

The following table summarizes the effect of the corrections on the condensed consolidated statement of operations for the three months and nine months ended September 30, 2021:

	For the Three Months Ended September 30, 2021									For the Nine Months Ended September 30, 2021
	As Reported			Adjustment			As Restated			As Reported			Adjustment			As Restated

Research and Development	$	792,439		$	(350,099	)	$	442,340		$	1,907,109		$	(350,099	)	$	1,557,010
Total Costs and Expenses		2,055,929			(350,099	)		1,705,830			5,888,910			(350,099	)		5,538,811
Loss from operations		(2,055,929	)		350,099			(1,705,830	)		(5,888,910	)		350,099			(5,538,811	)
Net Loss		(1,934,438	)		350,099			(1,584,339	)		(5,999,067	)		350,099			(5,648,968	)
Basic and diluted loss per share	$	(0.21	)	$	0.04		$	(0.17	)	$	(0.86	)	$	0.05		$	(0.81	)

The following table summarizes the effect of the corrections on the condensed consolidated statement of cash flows for the nine months ended September 30, 2021:

	For the Nine Months Ended September 30, 2021
	As Reported			Adjustment			As Restated

Net Loss	$	(5,999,067	)	$	350,099		$	(5,648,968	)
Amortization of Deferred R&D obligation - participation agreements	$	-		$	(350,099	)	$	(350,099	)
Increase in deferred revenue – participation agreements		85,303			(85,303	)		-
Advanced payments for R&D obligations – participation agreements		-			85,303			85,303

In addition, the Company’s previous filings also incorrectly identified the funds contributed to the Company per the Participation Agreements as Deferred Revenue – Participation Agreements and has been corrected to Deferred R&D obligations – Participation Agreements. The balance of the Participation Agreements impacted by this immaterial revision in the respective financial statements are $1,936,800, $2,001,001, and $2,031,103 as of December 31, 2020, March 31, 2021 and June 30, 2021, respectively.

Note 9 – Deferred R&D Obligations – Participation Agreements has been adjusted for these corrections.