iBio, Inc. (NYSE:IBIO) Q4 Fiscal 2021 Earnings Conference Call September 27, 2021 8:30 AM ET Company Participants Thomas Isett – Chairman & Chief Executive Officer Stephen Kilmer – Investor Relations Randy J Maddux – Chief Operating Officer Martin Brenner – Chief Scientific Officer Robert Lutz – Chief Financial and Business Officer Conference Call Participants Rick – Cantor Fitzgerald Matthew Herm – Matthew Herm LLC Operator Ladies and gentlemen, thank you for standing by and welcome to the iBio fiscal 2021 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ⌧ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR (Exact name of registrant as specified in its charter) Delaware 26-2797813 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 8800 HSC Parkway, Bryan, TX 77807-1107 (Address of principal executive offices) (Zip Code) (979) 4 ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The company reported increased revenue but a wider operating loss, though its cash position significantly improved due to financing activities [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets and equity grew substantially due to a significant increase in cash and investments from recent capital raises Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2020 (Unaudited) | June 30, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $91,252 | $55,112 | | Investments in debt securities | $16,395 | $0 | | Total Current Assets | $110,882 | $61,748 | | Total Assets | $145,406 | $94,189 | | **Liabilities & Equity** | | | | Total Current Liabilities | $6,102 | $5,236 | | Total Liabilities | $38,085 | $37,582 | | Total Equity | $107,321 | $56,607 | | Total Liabilities and Equity | $145,406 | $94,189 | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Revenues grew year-over-year, but higher operating expenses led to a larger operating loss of $14.5 million Statement of Operations Summary (in thousands, except per share data) | Metric | Six Months Ended Dec 31, 2020 | Six Months Ended Dec 31, 2019 | | :--- | :--- | :--- | | Revenues | $1,115 | $422 | | Total operating expenses | $15,584 | $7,432 | | Operating loss | $(14,469) | $(7,010) | | Consolidated net loss | $(15,665) | $(8,228) | | Net loss available to iBio, Inc. stockholders | $(15,793) | $(29,916) | | Loss per common share - basic and diluted | $(0.09) | $(1.02) | | Weighted-average common shares outstanding | 175,264 | 29,420 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Significant cash from financing activities offset cash used in operations and investing, resulting in a net cash increase Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended Dec 31, 2020 | Six Months Ended Dec 31, 2019 | | :--- | :--- | :--- | | Net cash used in operating activities | $(15,489) | $(5,692) | | Net cash used in investing activities | $(19,556) | $(238) | | Net cash provided by financing activities | $71,185 | $5,146 | | **Net increase (decrease) in cash** | **$36,140** | **$(784)** | | Cash - beginning of period | $55,112 | $4,421 | | **Cash - end of period** | **$91,252** | **$3,637** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail a strategic shift to biologics, significant capital raises ensuring liquidity, and segment performance - The company is a biotechnology firm and CDMO, shifting its primary focus to its **biologics development programs**[22](index=22&type=chunk)[23](index=23&type=chunk) - Based on cash, cash equivalents, and debt securities of approximately **$107.6 million**, management believes it has adequate cash to support activities through March 31, 2023[39](index=39&type=chunk) - The biologics development segment had an operating loss of **$5.6 million**, while the iBio CDMO segment had an operating loss of **$8.8 million**[195](index=195&type=chunk)[196](index=196&type=chunk) - In January 2021, the company issued an additional 4.24 million shares of common stock, receiving net proceeds of approximately **$4.7 million**[201](index=201&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=49&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses its strategic shift, rising expenses, and significantly improved liquidity from recent financing activities [Overview and Recent Developments](index=49&type=section&id=Overview%20and%20Recent%20Developments) The company advanced its COVID-19 vaccine candidate and secured significant funding through multiple financing agreements - The company selected **IBIO-201** as its lead candidate for the prevention of SARS-CoV-2 infection based on preclinical data[212](index=212&type=chunk) - On October 1, 2020, iBio entered a master services agreement with Safi Biosolutions, Inc and invested **$1.5 million** in Safi via a convertible promissory note[213](index=213&type=chunk) - The company raised approximately **$32.3 million** in net proceeds from an underwritten public offering in December 2020, and an additional **$4.7 million** in January 2021[219](index=219&type=chunk)[201](index=201&type=chunk) [Results of Operations](index=53&type=section&id=Results%20of%20Operations) Revenue increased by $0.7 million, while higher R&D and G&A expenses drove a larger operating loss of $14.5 million Comparison of Results of Operations (in thousands) | Expense Category | Six Months Ended Dec 31, 2020 | Six Months Ended Dec 31, 2019 | Change | | :--- | :--- | :--- | :--- | | Revenue | $1,115 | $422 | +$693 | | Research and Development | $4,206 | $1,865 | +$2,341 | | General and Administrative | $11,378 | $5,567 | +$5,811 | | **Total operating expenses** | **$15,584** | **$7,432** | **+$8,152** | - The increase in G&A expenses was primarily driven by increases in **professional and consulting fees (+$3.4M)**, facility repairs (+$0.9M), and personnel costs (+$0.5M)[233](index=233&type=chunk) [Liquidity and Capital Resources](index=55&type=section&id=Liquidity%20and%20Capital%20Resources) The company holds a strong liquidity position of $107.6 million, deemed sufficient to fund operations through March 2023 - As of December 31, 2020, the company had cash, cash equivalents, and debt securities of approximately **$107.6 million** and believes this is sufficient to support operations through March 31, 2023[240](index=240&type=chunk)[245](index=245&type=chunk) - The company has incurred significant losses since inception, with an accumulated deficit of approximately **$166.1 million** as of December 31, 2020[244](index=244&type=chunk) Cash Flow Summary for Six Months Ended Dec 31, 2020 (in thousands) | Activity | Amount | | :--- | :--- | | Net Cash Used in Operating Activities | $(15,489) | | Net Cash Used in Investing Activities | $(19,556) | | Net Cash Provided by Financing Activities | $71,185 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=59&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, iBio is not required to provide the information for this item - The company is a smaller reporting company and is **not required to provide information** regarding quantitative and qualitative disclosures about market risk[253](index=253&type=chunk) [Item 4. Controls and Procedures](index=59&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - The Chief Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were **effective** as of December 31, 2020[255](index=255&type=chunk) - **No material changes** to the internal control over financial reporting were identified during the quarter ended December 31, 2020[256](index=256&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=60&type=section&id=Item%201.%20Legal%20Proceedings) The company is in ongoing litigation with Fraunhofer USA over technology ownership, with a trial scheduled for March 2021 - The company is engaged in a lawsuit against Fraunhofer USA regarding technology ownership rights, with a **trial scheduled for March 1-5, 2021**[258](index=258&type=chunk)[262](index=262&type=chunk) - On September 25, 2020, the Court **denied Fraunhofer's motion for summary judgment** on several key claims, allowing them to proceed to trial[260](index=260&type=chunk) [Item 1A. Risk Factors](index=61&type=section&id=Item%201A.%20Risk%20Factors) Material risks include a history of losses, significant customer concentration, and dependence on key technology licenses - The company has a history of significant losses, with a net loss of **$15.7 million** for the six months ended December 31, 2020, and an accumulated deficit of **$166.1 million**[270](index=270&type=chunk) - For the three months ended December 31, 2020, one customer accounted for **63.8% of total revenue**, indicating significant customer concentration risk[267](index=267&type=chunk) - The company's fibrosis product candidate, IBIO-100, is dependent on a license requiring an **IND filing by December 31, 2021**[268](index=268&type=chunk) - The market price of the company's common stock has been and may continue to be **volatile**[281](index=281&type=chunk) [Item 5. Other Information](index=65&type=section&id=Item%205.%20Other%20Information) There is no information to report under this item - None[285](index=285&type=chunk) [Item 6. Exhibits](index=66&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including agreements, plans, and required certifications [Signatures](index=68&type=section&id=SIGNATURES) - The report was signed on **February 16, 2021**, by Thomas F. Isett, Chairman and Chief Executive Officer, and John Delta, Principal Accounting Officer[290](index=290&type=chunk)

iBio, Inc. (iBio) Q1 2021 Earnings Conference Call November 16, 2020 4:30 PM ET Company Participants Stephen Kilmer - IR Thomas Isett - Chairman and Chief Executive Officer John Delta - Principal Accounting Officer Conference Call Participants Ben Haynor - Alliance Global Patrick Wolf - Operator Good day ladies and gentlemen and thank you for standing by. Welcome to the iBio Fiscal 2021 First Quarter Financial Results Conference Call. At this time all participants are in a listen-only mode. After the speak ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides the unaudited condensed consolidated financial statements and related notes, along with management's discussion and analysis of financial condition and results of operations [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for iBio, Inc. and its subsidiaries, including the balance sheets, statements of operations and comprehensive loss, statements of equity (deficiency), and statements of cash flows, along with detailed notes explaining the company's business, accounting policies, and specific financial line items [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's financial position, detailing assets, liabilities, and equity at specific reporting dates Condensed Consolidated Balance Sheets (in thousands) | Metric | September 30, 2020 (Unaudited) | June 30, 2020 (See Note 2) | | :-------------------------------- | :----------------------------- | :------------------------- | | Cash and cash equivalents | $77,543 | $55,112 | | Total Current Assets | $84,959 | $61,748 | | Total Assets | $117,254 | $94,189 | | Total Current Liabilities | $5,046 | $5,236 | | Total Liabilities | $37,212 | $37,582 | | Total Equity | $80,042 | $56,607 | - Total assets increased from **$94.189 million** at June 30, 2020, to **$117.254 million** at September 30, 2020, primarily driven by an increase in cash and cash equivalents and investments in debt securities[8](index=8&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) This section outlines the company's financial performance, including revenues, operating expenses, and net loss over specific periods Condensed Consolidated Statements of Operations and Comprehensive Loss (in thousands) | Metric | Three Months Ended September 30, 2020 | Three Months Ended September 30, 2019 | | :---------------------------------------------- | :------------------------------------ | :------------------------------------ | | Revenues | $410 | $108 | | Research and development | $1,762 | $977 | | General and administrative | $5,572 | $2,986 | | Total operating expenses | $7,334 | $3,963 | | Operating loss | $(6,924) | $(3,855) | | Consolidated net loss | $(7,534) | $(4,464) | | Net loss available to iBio, Inc. | $(7,599) | $(4,529) | | Loss per common share attributable to iBio, Inc. stockholders – basic and diluted | $(0.05) | $(0.21) | - Revenues significantly increased from **$108,000** in Q3 2019 to **$410,000** in Q3 2020. However, operating expenses also rose substantially, leading to a higher consolidated net loss of **$7.534 million** compared to **$4.464 million** in the prior year[11](index=11&type=chunk) [Condensed Consolidated Statements of Equity (Deficiency)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity%20(Deficiency)) This section details changes in the company's equity, including common stock, additional paid-in capital, and accumulated deficit Condensed Consolidated Statements of Equity (Deficiency) (in thousands) | Metric | September 30, 2020 | July 1, 2020 | | :----------------------------------- | :----------------- | :----------- | | Common Stock (Shares) | 180,318 | 140,071 | | Common Stock (Amount) | $180 | $140 | | Additional Paid-In Capital | $237,867 | $206,931 | | Accumulated Deficit | $(157,953) | $(150,420) | | Total Equity | $80,042 | $56,607 | - Total equity increased from **$56.607 million** at July 1, 2020, to **$80.042 million** at September 30, 2020, primarily due to capital raises and common stock issuances, despite an increase in accumulated deficit[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes the company's cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (in thousands) | Metric | Three Months Ended September 30, 2020 | Three Months Ended September 30, 2019 | | :-------------------------------------- | :------------------------------------ | :------------------------------------ | | Net cash used in operating activities | $(7,070) | $(2,287) | | Net cash used in investing activities | $(6,600) | $(30) | | Net cash provided by financing activities | $36,101 | $- | | Net increase (decrease) in cash | $22,431 | $(2,318) | | Cash - end of period | $77,543 | $2,103 | - The company experienced a significant net increase in cash of **$22.431 million** for the three months ended September 30, 2020, primarily driven by **$36.101 million** in financing activities, offsetting cash used in operating and investing activities[16](index=16&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes explaining the company's business, accounting policies, and specific financial line items [Note 1. Nature of Business](index=10&type=section&id=Note%201.%20Nature%20of%20Business) This note describes iBio, Inc.'s core business as a biotechnology company and biologics CDMO, focusing on its FastPharming System and product development pipeline - iBio, Inc. is a biotechnology company and biologics CDMO, utilizing its FastPharming System for rapid development and manufacturing of novel products for fibrotic diseases, cancers, infectious diseases, and 3D-bioprinting applications[18](index=18&type=chunk)[193](index=193&type=chunk) - The company shifted its primary focus from CDMO business to biologics development programs, including new vaccines and therapeutics, during the second half of 2020[19](index=19&type=chunk)[194](index=194&type=chunk) - CDMO Services: Process development, manufacturing, fill/finish, and bioanalytics using FastPharming System and Glycaneering Services[20](index=20&type=chunk)[195](index=195&type=chunk) - Therapeutics: IBIO-100 for fibrotic diseases (orphan drug designation), ACE2-Fc fusion protein for COVID-19 (in-licensed)[23](index=23&type=chunk)[197](index=197&type=chunk) - Vaccines: IBIO-200 (SARS-CoV-2 VLP antigen), IBIO-201 (LicKM-subunit vaccine for COVID-19), IBIO-400 (E2 antigen for classical swine fever)[24](index=24&type=chunk)[198](index=198&type=chunk)[199](index=199&type=chunk) - Research & Bioprocess Products: Protein scaffolds for 3D-bioprinting, cytokines, growth factors, and biomaterials[200](index=200&type=chunk)[204](index=204&type=chunk) [Note 2. Basis of Presentation](index=12&type=section&id=Note%202.%20Basis%20of%20Presentation) This note explains the basis for preparing the unaudited condensed consolidated financial statements in accordance with U.S. GAAP and SEC rules - The unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP for interim financial information and SEC Rule 8-03 of Regulation S-X[29](index=29&type=chunk) - Management believes the company has adequate cash (**$83.6 million** as of September 30, 2020, plus **$3.0 million** from subsequent stock sales) to support activities through fiscal year 2022, addressing prior going concern doubts[32](index=32&type=chunk) [Note 3. Summary of Significant Accounting Policies](index=13&type=section&id=Note%203.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the key accounting policies applied, including revenue recognition, lease accounting, research and development costs, and cash management - Revenue recognition follows ASU 2014-09 (Topic 606), recognizing revenue when customers obtain control of promised goods or services. For the three months ended September 30, 2020, **$410,000** was recognized at a point in time, compared to **$61,000** in the prior year[37](index=37&type=chunk)[42](index=42&type=chunk) - The company adopted ASU 2016-02 (ASC 842) for leases effective July 1, 2019, using a modified retrospective approach, which increased non-current assets and liabilities by recognizing Right-of-Use (ROU) assets and lease liabilities[49](index=49&type=chunk) - Research and development costs are expensed as incurred, and third-party R&D costs are expensed when contracted work is performed or milestones are achieved[58](index=58&type=chunk) - The company maintains cash balances in one financial institution, with approximately **$57.162 million** in excess of insured limits at September 30, 2020[67](index=67&type=chunk) - During the three months ended September 30, 2020, **100%** of revenue came from two customers: Corteva Agriscience (**50.5%**) and AzarGen Biotechnologies (**49.5%**)[68](index=68&type=chunk) [Note 4. Financial Instruments and Fair Value Measurement](index=18&type=section&id=Note%204.%20Financial%20Instruments%20and%20Fair%20Value%20Measurement) This note discusses the fair value measurements of the company's financial instruments, including cash, receivables, payables, and debt securities - The carrying values of cash, accounts receivable, accounts payable, and finance lease obligations approximated their fair values due to their short-term nature or market-approximated interest rates[74](index=74&type=chunk) - Investments in debt securities are classified as available-for-sale and valued using Level 2 inputs (observable market data for similar assets/liabilities)[75](index=75&type=chunk)[76](index=76&type=chunk) [Note 5. Investments in Debt Securities](index=19&type=section&id=Note%205.%20Investments%20in%20Debt%20Securities) This note provides details on the company's investments in debt securities, including their fair value, adjusted cost, and maturity profiles Investments in Debt Securities (in thousands) | Metric | September 30, 2020 | | :---------------------- | :----------------- | | Adjusted cost | $6,017 | | Gross unrealized losses | $(7) | | Fair value | $6,010 | - Investments in debt securities, consisting of AA and A rated corporate bonds, had a fair value of **$6.010 million** as of September 30, 2020, with maturities ranging from April 2021 to August 2022[78](index=78&type=chunk) [Note 6. Finance Lease ROU's](index=19&type=section&id=Note%206.%20Finance%20Lease%20ROU's) This note details the company's finance lease right-of-use assets and their associated accumulated amortization Finance Lease ROU's (in thousands) | Metric | September 30, 2020 | June 30, 2020 | | :-------------------------- | :----------------- | :------------ | | ROU - Facility | $25,761 | $25,761 | | ROU - Equipment | $7,728 | $7,728 | | Accumulated amortization | $(6,288) | $(5,873) | | Net finance lease ROU | $27,201 | $27,616 | - Net finance lease ROU assets decreased slightly from **$27.616 million** at June 30, 2020, to **$27.201 million** at September 30, 2020, with amortization expense of **$415,000** for the three months ended September 30, 2020[80](index=80&type=chunk) [Note 7. Fixed Assets](index=20&type=section&id=Note%207.%20Fixed%20Assets) This note provides a breakdown of the company's fixed assets, including facility improvements, medical equipment, and accumulated depreciation Fixed Assets (in thousands) | Metric | September 30, 2020 | June 30, 2020 | | :-------------------------- | :----------------- | :------------ | | Facility improvements | $1,496 | $1,465 | | Medical equipment | $2,589 | $1,760 | | Office equipment and software | $453 | $398 | | Construction in progress | $146 | $787 | | Accumulated depreciation | $(850) | $(753) | | Net fixed assets | $3,834 | $3,657 | - Net fixed assets increased to **$3.834 million** at September 30, 2020, from **$3.657 million** at June 30, 2020, with depreciation expense of **$97,000** for the quarter[82](index=82&type=chunk) [Note 8. Intangible Assets](index=20&type=section&id=Note%208.%20Intangible%20Assets) This note details the company's intangible assets, including intellectual property and patents, along with their amortization Intangible Assets (in thousands) | Metric | September 30, 2020 | June 30, 2020 | | :----------------------------------- | :----------------- | :------------ | | Intellectual property – gross carrying value | $3,100 | $3,100 | | Patents – gross carrying value | $2,792 | $2,628 | | Accumulated amortization | $(4,656) | $(4,584) | | Net intangible assets | $1,236 | $1,144 | - Net intangible assets increased to **$1.236 million** at September 30, 2020, from **$1.144 million** at June 30, 2020, with amortization expense of **$72,000** for the quarter[87](index=87&type=chunk) - Intangible assets include intellectual property (technology, know-how, data, protocols for plant-based protein production) and patents, amortized over **16-23 years** and **10 years**, respectively[83](index=83&type=chunk)[85](index=85&type=chunk) [Note 9. Notes Payable – PPP Loan](index=21&type=section&id=Note%209.%20Notes%20Payable%20%E2%80%93%20PPP%20Loan) This note describes the Paycheck Protection Program loan received by the company and its terms, including potential for forgiveness - The company received a **$600,000** Paycheck Protection Program (PPP) loan on April 16, 2020, with **$362,000** due in the next **12 months** and **$238,000** thereafter[88](index=88&type=chunk)[89](index=89&type=chunk) - Forgiveness of the loan is dependent on SBA approval, and while expected, there is no certainty[88](index=88&type=chunk) [Note 10. Finance Lease Obligation](index=22&type=section&id=Note%2010.%20Finance%20Lease%20Obligation) This note outlines the company's finance lease obligations, primarily for its Bryan, Texas facility and equipment, including future payment schedules - iBio CDMO leases its Bryan, Texas facility and equipment under a **34-year** sublease expiring in 2050, with annual base rent of **$2.1 million** subject to CPI increases and percentage rent based on gross sales[90](index=90&type=chunk)[91](index=91&type=chunk) Finance Lease Obligations (in thousands) | Metric | September 30, 2020 | | :-------------------------------------- | :----------------- | | Finance lease right-of-use assets | $27,201 | | Finance lease obligation – current portion | $306 | | Finance lease obligation - non-current portion | $31,928 | | Weighted average remaining lease term | 29.43 years | | Weighted average discount rate | 7.608% | Minimum Lease Payments | Fiscal period ending on September 30: | Principal | Interest | Total | | :------------------------------------ | :---------- | :---------- | :---------- | | 2021 | $306,334 | $2,443,666 | $2,750,000 | | 2022 | $330,312 | $2,419,688 | $2,750,000 | | 2023 | $356,167 | $2,393,833 | $2,750,000 | | 2024 | $384,046 | $2,365,954 | $2,750,000 | | 2025 | $414,106 | $2,335,894 | $2,750,000 | | Thereafter | $30,443,565 | $36,931,435 | $67,375,000 | | Total minimum lease payments | $32,234,530 | $48,890,470 | $81,125,000 | [Note 11. Stockholders' Equity](index=23&type=section&id=Note%2011.%20Stockholders'%20Equity) This note details the components of stockholders' equity, including authorized and outstanding shares, capital raises, and warrant conversions - The company has authorized **1 million** shares of preferred stock and **275 million** shares of common stock. As of November 16, 2020, **182.1 million** common shares and one iBio CMO Preferred Tracking Stock share were outstanding[107](index=107&type=chunk)[251](index=251&type=chunk) - All Series A, B, and C Convertible Preferred Stock were converted into common stock by September 30, 2020, eliminating these preferred share classes[100](index=100&type=chunk)[103](index=103&type=chunk)[106](index=106&type=chunk) - The company raised significant capital through equity offerings, including **$68.97 million** net proceeds from UBS Equity Distribution Agreement and **$25.23 million** gross proceeds from Lincoln Park March 2020 Purchase Agreement[217](index=217&type=chunk)[218](index=218&type=chunk)[250](index=250&type=chunk) - All Series A and B Warrants were exchanged for common stock and promissory notes, resulting in no outstanding warrants as of September 30, 2020[141](index=141&type=chunk)[144](index=144&type=chunk) [Note 12. Earnings (Loss) Per Common Share](index=32&type=section&id=Note%2012.%20Earnings%20(Loss)%20Per%20Common%20Share) This note presents the calculation of basic and diluted earnings (loss) per common share, reflecting net loss and weighted-average shares outstanding Earnings (Loss) Per Common Share (in thousands, except per share data) | Metric | Three Months Ended September 30, 2020 | Three Months Ended September 30, 2019 | | :---------------------------------------------- | :------------------------------------ | :------------------------------------ | | Net loss available to iBio, Inc. stockholders | $(7,599) | $(4,529) | | Weighted-average common shares outstanding | 162,442 | 21,923 | | Per share amount | $(0.05) | $(0.21) | - Basic and diluted loss per common share was **$(0.05)** for the three months ended September 30, 2020, an improvement from **$(0.21)** in the prior year, despite a higher net loss, due to a significant increase in weighted-average common shares outstanding[146](index=146&type=chunk)[147](index=147&type=chunk) [Note 13. Share-Based Compensation](index=33&type=section&id=Note%2013.%20Share-Based%20Compensation) This note describes the company's share-based compensation plans and the associated expense recognized for stock options and other equity awards Share-Based Compensation Expense (in thousands) | Expense Category | Three Months Ended September 30, 2020 | Three Months Ended September 30, 2019 | | :------------------------ | :------------------------------------ | :------------------------------------ | | Research and development | $47 | $7 | | General and administrative | $304 | $61 | | Total | $351 | $68 | - Total share-based compensation expense increased significantly to **$351,000** for the three months ended September 30, 2020, from **$68,000** in the prior year, primarily in general and administrative expenses[148](index=148&type=chunk) - The 2018 Omnibus Equity Incentive Plan was amended to increase authorized shares to **6.5 million** and include restricted stock units and performance-based awards[150](index=150&type=chunk) - A new 2020 Omnibus Equity Incentive Plan, seeking shareholder approval, proposes **32 million** reserved shares and expanded award types, with non-employee director award limits[156](index=156&type=chunk) [Note 14. Related Party Transactions](index=35&type=section&id=Note%2014.%20Related%20Party%20Transactions) This note discloses transactions and agreements with related parties, including consulting services and joint venture arrangements - Research and development expenses related to Novici Biotech, LLC (where iBio's President is a minority stockholder) decreased from **$97,000** in Q3 2019 to **$0** in Q3 2020[157](index=157&type=chunk) - The company has ongoing agreements with Eastern Capital Limited and its affiliates, including a contract manufacturing joint venture (iBio CDMO) and a **34-year** sublease for the Bryan, Texas facility[159](index=159&type=chunk)[160](index=160&type=chunk) - Consulting expenses for KBI Consulting (Mr. Isett's wife) totaled **$17,000** for Q3 2020, up from **$0** in Q3 2019[166](index=166&type=chunk) - TechCXO LLC was retained in July 2020 for interim principal financial officer services, incurring **$191,000** in consulting expenses for Q3 2020[167](index=167&type=chunk) [Note 15. Income Taxes](index=36&type=section&id=Note%2015.%20Income%20Taxes) This note explains the company's income tax position, including the absence of tax expense and the valuation allowance against deferred tax assets - The company recorded no income tax expense for the three months ended September 30, 2020 and 2019, maintaining a valuation allowance against net deferred tax assets due to the unlikelihood of realization[168](index=168&type=chunk) [Note 16. Commitments and Contingencies](index=36&type=section&id=Note%2016.%20Commitments%20and%20Contingencies) This note outlines the company's significant commitments and contingencies, including the impact of the COVID-19 pandemic and license agreements - The COVID-19 pandemic has caused reduced CDMO capacity and a three-day operational shutdown in April 2020, but the company does not anticipate significant future threats to operations or liquidity[169](index=169&type=chunk)[170](index=170&type=chunk) - iBio entered an exclusive worldwide license agreement with Planet Biotechnology Inc. for the COVID-19 therapeutic candidate ACE2-F, making an upfront payment of **$150,000** and committing to future milestone payments up to **$5.15 million**[172](index=172&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk) [Note 17. Employee 401(K) Plan](index=38&type=section&id=Note%2017.%20Employee%20401(K)%20Plan) This note details the company's contributions to its employee 401(K) retirement plan - Employer contributions to the 401(K) Plan totaled **$32,000** for the three months ended September 30, 2020, a slight increase from **$30,000** in the prior year[182](index=182&type=chunk) [Note 18. Segment Reporting](index=39&type=section&id=Note%2018.%20Segment%20Reporting) This note provides financial information disaggregated by the company's operating segments: biologics development and licensing, and CDMO - The company operates in two segments: biologics development and licensing (iBio, Inc.) and CDMO (iBio CDMO)[183](index=183&type=chunk) Segment Reporting (in thousands) | Metric (in thousands) | iBio, Inc. (Q3 2020) | iBio CDMO (Q3 2020) | Total (Q3 2020) | | :-------------------- | :------------------- | :------------------ | :-------------- | | Revenues – external | $207 | $203 | $410 | | Operating loss | $(2,569) | $(4,355) | $(6,924) | | Consolidated net loss | $(2,566) | $(4,968) | $(7,534) | | Total assets | $132,207 | $33,320 | $117,254 | - For Q3 2020, iBio CDMO reported a higher operating loss (**$4.355 million**) and consolidated net loss (**$4.968 million**) compared to iBio, Inc.'s biologics segment[184](index=184&type=chunk) [Note 19. Compliance to Satisfy a Continued Listing Rule or Standard](index=40&type=section&id=Note%2019.%20Compliance%20to%20Satisfy%20a%20Continued%20Listing%20Rule%20or%20Standard) This note addresses the company's compliance with NYSE American continued listing standards, including market capitalization and equity requirements - On October 1, 2020, the company regained compliance with all NYSE American continued listing standards by meeting the **$50 million** market capitalization exemption[186](index=186&type=chunk) - Previously, the company received notifications regarding non-compliance with stockholders' equity and low share price standards, which were resolved by June 9, 2020, for the share price and October 1, 2020, for equity standards[185](index=185&type=chunk)[186](index=186&type=chunk) [Note 20. Subsequent Events](index=40&type=section&id=Note%2020.%20Subsequent%20Events) This note discloses significant events that occurred after the balance sheet date, such as new agreements and investments - On October 1, 2020, iBio entered a master services agreement with Safi Biosolutions, Inc. to evaluate its FastPharming System for expressing key proteins in blood cell therapy bioprocessing[188](index=188&type=chunk) - iBio also invested **$1.5 million** in Safi via a convertible promissory note bearing **5%** interest, maturing October 1, 2023[189](index=189&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations for the three months ended September 30, 2020, compared to the same period in 2019, highlighting key financial changes, recent business developments, liquidity, and critical accounting policies [Overview](index=41&type=section&id=Overview) This section provides a high-level summary of iBio's business as a biotechnology company and CDMO, highlighting its FastPharming System and product pipeline - iBio is a biotechnology company and CDMO, leveraging its FastPharming System for rapid development of novel products for fibrotic diseases, cancers, infectious diseases, and 3D-bioprinting[193](index=193&type=chunk) - The company shifted its primary focus to biologics development programs, including new vaccines and therapeutics, during the second half of 2020[194](index=194&type=chunk) - CDMO Services: Process development and manufacturing of protein products in plants using FastPharming System[195](index=195&type=chunk) - Therapeutics: IBIO-100 for fibrotic diseases, ACE2-Fc fusion protein for COVID-19[197](index=197&type=chunk)[198](index=198&type=chunk) - Vaccines: IBIO-200 and IBIO-201 for SARS-CoV-2, IBIO-400 for classical swine fever[199](index=199&type=chunk)[200](index=200&type=chunk) - Research & Bioprocess Products: Protein scaffolds for 3D-bioprinting, cytokines, growth factors, and biomaterials[204](index=204&type=chunk) [Recent Developments](index=42&type=section&id=Recent%20Developments) This section outlines key corporate and product development updates, including equity agreements, licensing deals, and vaccine candidate selection - The Equity Distribution Agreement with UBS Securities LLC was amended on July 29, 2020, increasing the potential sale of common stock by **$27 million** to an aggregate gross sale price of **$72 million**[201](index=201&type=chunk) - iBio entered an exclusive worldwide license agreement with Planet Biotechnology Inc. on August 28, 2020, for the development of Planet's COVID-19 therapeutic candidate, ACE2-F[202](index=202&type=chunk) - IBIO-201 was selected as the lead candidate for SARS-CoV-2 prevention in September 2020, based on preclinical studies showing strong anti-spike neutralizing antibody production[203](index=203&type=chunk) - On October 1, 2020, iBio partnered with Safi Biosolutions, Inc. to evaluate its FastPharming System for bioprocessing blood cell therapy products and invested **$1.5 million** in Safi via a convertible promissory note[204](index=204&type=chunk) [Results of Operations - Comparison of Three Months ended September 30, 2020 and September 30, 2019](index=43&type=section&id=Results%20of%20Operations%20-%20Comparison%20of%20Three%20Months%20ended%20September%2030,%202020%20and%20September%2030,%202019) This section analyzes the company's financial performance for the three months ended September 30, 2020, compared to the prior year, focusing on revenue and expense changes Results of Operations Comparison | Metric | Three Months Ended September 30, 2020 | Three Months Ended September 30, 2019 | Change ($) | Change (%) | | :---------------------------------------------- | :------------------------------------ | :------------------------------------ | :--------- | :--------- | | Revenues | $410,000 | $108,000 | $302,000 | 279.6% | | Research and Development Expenses | $1,762,000 | $977,000 | $785,000 | 80.3% | | General and Administrative Expenses | $5,572,000 | $2,986,000 | $2,586,000 | 86.6% | | Total Operating Expenses | $7,334,000 | $3,963,000 | $3,371,000 | 85.1% | | Operating Loss | $(6,924,000) | $(3,855,000) | $(3,069,000)| 79.6% | | Net Loss Attributable to iBio, Inc. | $(7,533,000) | $(4,463,000) | $(3,070,000)| 68.8% | | Loss per common share attributable to iBio, Inc. stockholders – basic and diluted | $(0.05) | $(0.21) | $0.16 | -76.2% | - Revenue increased by **$302,000** (**279.6%**) due to completion of deliverables for Corteva Agriscience and AzarGen Biotechnologies[205](index=205&type=chunk) - R&D expenses increased by **$785,000** (**80.3%**) due to higher laboratory consumables, supplies, and personnel costs, partially offset by reduced payments to Novici[206](index=206&type=chunk) - G&A expenses increased by **$2,586,000** (**86.6%**) primarily due to increases in professional and consulting fees, facility repairs, board fees, and personnel costs[207](index=207&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash position, sources and uses of cash, and overall financial resources available for operations Cash Flow Summary | Metric | Three Months Ended September 30, 2020 | Three Months Ended September 30, 2019 | | :-------------------------------------- | :------------------------------------ | :------------------------------------ | | Net cash used in operating activities | $(7,070,000) | $(2,287,000) | | Net cash used in investing activities | $(6,600,000) | $(30,000) | | Net cash provided by financing activities | $36,101,000 | $- | - Cash and cash equivalents plus debt securities totaled **$83.6 million** as of September 30, 2020, up from **$55.1 million** at June 30, 2020[214](index=214&type=chunk) - Net cash provided by financing activities was **$36.101 million**, primarily from the UBS Equity Distribution Agreement and Lincoln Park March 2020 Purchase Agreement[217](index=217&type=chunk) [Funding Requirements](index=45&type=section&id=Funding%20Requirements) This section addresses the company's historical losses, future capital needs, and strategies for funding operations through commercialization and equity offerings - The company has incurred significant losses and negative cash flows, with an accumulated deficit of approximately **$158.0 million** as of September 30, 2020[219](index=219&type=chunk) - Management believes current cash resources of **$83.6 million** (plus **$3.0 million** from subsequent stock sales) are sufficient to fund operations through fiscal year 2022, mitigating prior going concern doubts[220](index=220&type=chunk) - Future funding will rely on commercialization of technologies, license/collaboration arrangements, CDMO operations, and additional equity sales, with risks of dilution or operational scaling back if funds are not available[221](index=221&type=chunk) [Off-Balance Sheet Arrangements](index=46&type=section&id=Off-Balance%20Sheet%20Arrangements) This section confirms the absence of any off-balance sheet arrangements or special purpose entities as of the reporting date - As of September 30, 2020, the company was not involved in any off-balance sheet arrangements or special purpose entities[223](index=223&type=chunk) [Critical Accounting Policies and Estimates](index=46&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section highlights the accounting policies that require significant management judgment and estimates, which could impact the financial statements - Valuation of intellectual property - Revenue recognition - Lease accounting - Legal and contractual contingencies - Research and development expenses - Share-based compensation expenses[227](index=227&type=chunk) - The preparation of financial statements requires management to make estimates and assumptions, which, if actual results differ, could materially affect the condensed consolidated financial statements[225](index=225&type=chunk)[226](index=226&type=chunk) [Item 3 Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, iBio, Inc. is not required to provide quantitative and qualitative disclosures about market risk - The company is exempt from providing quantitative and qualitative disclosures about market risk due to its status as a smaller reporting company[228](index=228&type=chunk) [Item 4. Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) Management evaluated the effectiveness of disclosure controls and procedures, concluding they were effective as of September 30, 2020, after remediating a previously identified material weakness related to the timely recording of common stock sales - Management concluded that disclosure controls and procedures were effective as of September 30, 2020, providing reasonable assurance[229](index=229&type=chunk) - A material weakness in controls over recording common stock sales, identified in prior periods, was remediated through retention of consultants and implementation of additional, timely procedures[229](index=229&type=chunk)[230](index=230&type=chunk)[231](index=231&type=chunk) - No other changes in internal control over financial reporting materially affected or are reasonably likely to materially affect internal control during the quarter ended September 30, 2020[232](index=232&type=chunk) [PART II. OTHER INFORMATION](index=44&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, other information, exhibits, and required signatures for the report [Item 1. Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) This section details ongoing legal proceedings, primarily a lawsuit against Fraunhofer USA, Inc. regarding intellectual property ownership and contract breaches - iBio is engaged in ongoing litigation against Fraunhofer USA, Inc. for material and continuing breaches of contracts, with the court ruling in iBio's favor on the scope of technology ownership[177](index=177&type=chunk)[234](index=234&type=chunk) - On September 25, 2020, the court granted in part and denied in part Fraunhofer's motion for summary judgment, allowing iBio's claims for declaratory judgment, breach of contract, misappropriation of trade secrets, tortious interference, and deceptive trade practices to proceed to trial[179](index=179&type=chunk)[236](index=236&type=chunk) - The case is set for trial from March 1 to 5, 2021, and the company is unable to predict the further outcome at this time[181](index=181&type=chunk)[238](index=238&type=chunk) [Item 1A. Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) This section updates the risk factors, emphasizing the risks associated with customer concentration, the company's history of significant losses and need for additional capital, and potential dilution from future equity offerings - The company faces significant risk from customer concentration, with **100%** of its revenue for the three months ended September 30, 2020, derived from just two customers: Corteva Agriscience (**50.5%**) and AzarGen Biotechnologies (**49.5%**)[241](index=241&type=chunk)[242](index=242&type=chunk) - iBio has incurred substantial operating losses and negative cash flows since inception, with an accumulated deficit of approximately **$158.0 million** as of September 30, 2020, and expects to incur losses for at least the next year[244](index=244&type=chunk)[245](index=245&type=chunk) - Future equity offerings could lead to substantial dilution for existing stockholders, and the sale of a large number of shares could negatively impact the stock price and future fundraising ability[247](index=247&type=chunk)[252](index=252&type=chunk) [Item 5. Other Information](index=46&type=section&id=Item%205.%20Other%20Information) This section discloses that the Board of Directors ratified the issuance of certain stock options, which were determined to be defective corporate acts, under Section 204 of the General Corporation Law of the State of Delaware - On November 13, 2020, the Board of Directors ratified the issuance of certain stock options, acknowledging they were defective corporate acts in contravention of Section 157(c) of Delaware law[253](index=253&type=chunk) - Any claim challenging the ratification of these defective corporate acts must be brought within **120 days** from the filing date of this report[253](index=253&type=chunk) [Item 6. Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including amendments to agreements, corporate organizational documents, certifications, and resolutions related to option grants - The exhibits include Amendment No. 1 to the Equity Distribution Agreement, Certificate of Incorporation amendments, First Amended and Restated Bylaws, various certifications (CEO, PFO), and Resolutions adopted by the Board of Directors Ratifying Option Grants[254](index=254&type=chunk) [SIGNATURES](index=48&type=section&id=SIGNATURES) This section contains the required signatures of the registrant's authorized officers, including the Chairman and Chief Executive Officer and the Principal Accounting Officer, certifying the filing of the report - The report is signed by Thomas F. Isett, Chairman and Chief Executive Officer, and John Delta, Principal Accounting Officer (Principal Financial Officer and Principal Accounting Officer), on November 16, 2020[256](index=256&type=chunk)[257](index=257&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2020 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___ Commission file number 001-35023 (Address of principal executive offices) (Zip Code) iBio, Inc. (Exact name of registrant as specified in its charter) Delaware 26-2797 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the quarterly period ended March 31, 2020 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___ Commission file number 001-35023 iBio, Inc. (Exact name of registrant as specified in its charter) Delaware 26-2797813 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (State or other jurisdiction of incorpo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2019 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___ Commission file number 001-35023 iBio, Inc. (Exact name of registrant as specified in its charter) Delaware 26-2797813 (State or other jurisdiction of inco ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___ Commission file number 001-35023 iBio, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2019 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___ Commission file number 001-35023 iBio, Inc. (Exact name of registrant as specified in its charter) Delaware 26-2797813 (State or other jurisdiction of incorporation or ...