Oncology Drug Development - The company is focused on developing Next Generation Chemotherapy (NGC) oncology drug products to improve patient survival and quality of life [59]. - NGC-Cap (PCS6422) is currently in Phase 1B trials, demonstrating up to 50 times greater potency than capecitabine alone [66]. - The Phase 1B trial for NGC-Cap has completed enrollment, and the recommended Phase 2 dosage regimens have been determined [68]. - The next Phase 2 trial for NGC-Cap will focus on breast cancer, with patient enrollment expected to begin in Q3 2024 [71]. - NGC-Gem (PCS3117) is being evaluated for its potential use in pancreatic and other cancers, with a meeting planned with the FDA in 2024 to discuss trial designs [73]. - The company is also developing NGC-Iri, an analog of SN38, with IND-enabling toxicology studies planned for 2024, subject to funding availability [73]. - The company aims to provide improved safety-efficacy profiles for its NGC products compared to existing therapies like capecitabine, gemcitabine, and irinotecan [62]. - The regulatory science approach utilized by the company is designed to enhance the likelihood of FDA approval and improve treatment options for patients [64]. Financial Performance - The company reported a net loss of $2,726,381 for the three months ended March 31, 2024, down from a net loss of $4,022,073 in the same period of 2023 [78]. - Research and development expenses decreased by $88,410 to $1,539,070 for the three months ended March 31, 2024, compared to $1,627,480 in the same period of 2023 [82]. - Operating expenses for the three months ended March 31, 2024, included $1,270,528 in general and administrative expenses, down from $2,478,055 in the same period of 2023 [87]. - The company has an accumulated deficit of $78.1 million as of March 31, 2024 [97]. - The company used net cash of $2,048,884 in operating activities during the three months ended March 31, 2024, compared to $2,114,070 in the same period of 2023 [92]. Funding and Capital Needs - The company raised gross proceeds of $7.0 million from a public offering on January 30, 2024, with net proceeds of $6.3 million [77]. - Cash and cash equivalents totaled $8.9 million as of March 31, 2024, which is expected to satisfy capital needs into early 2025 [96]. - The company anticipates an increase in research and development costs as it continues its Phase 1B clinical trial for NGC-Cap and begins its Phase 2 trial [83]. - The company plans to raise additional funds through public or private equity offerings, debt financings, and strategic alliances [99]. Other Developments - The company completed its Phase 2A trial for PCS12852 in gastroparesis patients with positive results in 2023 [75]. - The license agreement with Elion for NGC-Cap includes a milestone to dose the first patient in a Phase 2 or 3 clinical trial by October 2, 2024 [72]. - The company is exploring options for two non-oncology drugs, which may include out-licensing or partnership opportunities [63]. - Item 3 regarding quantitative and qualitative disclosures about market risk is not applicable to the company as a smaller reporting company and has been omitted [106].

Financial Performance - In 2023, the company reported an operating loss of $11,457,061, a decrease from the operating loss of $27,525,431 in 2022, reflecting a reduction in operating expenses [302]. - The company had no revenue for the years ended December 31, 2023 and 2022, with no immediate sales prospects [303]. - The company reported a net loss of approximately $11.1 million for the year ended December 31, 2023, with an accumulated deficit of approximately $75.4 million [317]. - Net cash used in operating activities was $8,063,346 for the year ended December 31, 2023, compared to $9,605,143 in 2022, reflecting ongoing clinical trial costs [321]. Research and Development - Research and development costs decreased by $5.7 million to $5,799,518 in 2023, down from $11,494,230 in 2022, primarily due to the completion of the PCS12852 clinical trial and the termination of the PCS499 trial [305]. - The company completed its Phase 2A trial for PCS12852 in gastroparesis patients with positive results in 2023 [299]. - The company plans to conduct IND-enabling and toxicology studies for NGC-Iri in 2024-2025, targeting various cancers [299]. - The estimated annual newly diagnosed incidence rate for breast, colorectal, and other cancers relevant to NGC-Cap is greater than 250,000 patients per year [299]. Capital and Funding - The company raised gross proceeds of $7.0 million from a public offering on January 30, 2024, with net proceeds of $6.3 million intended for continued research and development for NGC-Cap [301]. - The company anticipates needing to raise additional capital in early 2025 to fund operations and continue the development of NGC drugs [307]. - Cash and cash equivalents totaled $4.7 million as of December 31, 2023, with an additional $6.3 million raised in January 2024 from a public offering [316]. - The company has an effective shelf registration statement on file with the SEC, providing flexibility to raise capital through public or private equity offerings [319]. Expenses and Impairments - General and administrative expenses decreased by $3.1 million to $5,657,543 for the year ended December 31, 2023, compared to $8,763,058 in 2022, primarily due to a reduction in employee stock-based compensation [311]. - The company recognized an impairment of $7.3 million for the PCS499 intangible asset, reducing its value to zero, due to slow patient enrollment and the decision to terminate the clinical trial [313]. - Stock-based compensation expense is recognized over the requisite service period based on estimated grant-date fair value, with no expense recognized for performance-vesting conditions until probable [335]. Tax and Deferred Assets - A valuation allowance equal to the full recorded amount of net deferred tax assets has been maintained, indicating that benefits from these assets are unlikely to be realized [337]. - The company does not expect to generate income tax benefits or expenses in the foreseeable future due to anticipated net operating losses [337]. - No unrecognized tax benefits were recorded as of December 31, 2023, indicating no liability, interest, or penalties required [338]. Other Financial Information - Net other income increased to $335,541 for the year ended December 31, 2023, compared to $101,202 in 2022, primarily driven by interest income [314]. - The company raised net proceeds of $6.4 million from the sale of common stock during the year ended December 31, 2023 [324]. - Prepaid expenses included $570,000 for advanced payments made to the CRO for the NGC-Cap clinical trial as of December 31, 2023 [310]. - Payments made to third parties in advance of services are recorded as prepaid expenses until the services are rendered [334].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 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 001-39531 Processa Pharmaceuticals, Inc. (Exact name of registrant as specified in its charter) Delaware 45-1539785 (S ...

PART 1: FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=ITEM%201%3A%20FINANCIAL%20STATEMENTS) Processa Pharmaceuticals reported a reduced net loss for the six months ended June 30, 2023, but faces significant going concern doubts despite increased cash and a recent CEO appointment Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $8,677,133 | $6,503,595 | | Total Assets | $10,090,423 | $8,619,851 | | Total Liabilities | $930,741 | $1,149,110 | | Total Stockholders' Equity | $9,159,682 | $7,470,741 | | Accumulated Deficit | $(70,882,199) | $(64,247,561) | Condensed Consolidated Statements of Operations (Unaudited) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Research and development expenses | $1,688,164 | $3,137,292 | $3,342,509 | $5,181,912 | | General and administrative expenses | $1,026,301 | $2,034,456 | $3,477,490 | $3,218,550 | | Net Loss | $(2,612,565) | $(5,164,368) | $(6,634,638) | $(8,391,499) | | Net Loss per Share - Basic and Diluted | $(0.10) | $(0.32) | $(0.27) | $(0.53) | Condensed Consolidated Statements of Cash Flows (Unaudited, Six Months Ended June 30) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | $(4,178,539) | $(4,133,439) | | Net cash provided by (used in) financing activities | $6,352,077 | $(300,000) | | Net Increase (Decrease) in Cash | $2,173,538 | $(4,433,439) | | Cash and Cash Equivalents – End of Period | $8,677,133 | $12,064,142 | - The company has incurred losses since inception, with an accumulated deficit of **$70.9 million** as of June 30, 2023, raising **substantial doubt about the company's ability to continue as a going concern**[24](index=24&type=chunk)[26](index=26&type=chunk) - During the first six months of 2023, the company raised gross proceeds of **$7.0 million** (net proceeds of **$6.4 million**) from the sale of **8,432,192 shares** of common stock[25](index=25&type=chunk)[41](index=41&type=chunk) - On August 8, 2023, **Mr. George Ng** was appointed as the new **Chief Executive Officer** and a **Board Director**, while **Dr. David Young** transitioned to **President, Research and Development**[62](index=62&type=chunk)[63](index=63&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=14&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses a strategic shift to the NGC pipeline, reduced R&D expenses, and the critical need for additional funding due to substantial going concern risk - The company has strategically prioritized its pipeline of **Next Generation Chemotherapy (NGC) oncology drugs**, designed to improve the safety-efficacy profiles of existing approved treatments[68](index=68&type=chunk)[73](index=73&type=chunk) - The company's drug pipeline is led by **NGC-Capecitabine (Phase 1B ongoing)**, followed by **NGC-Gemcitabine** and **NGC-Irinotecan**, with non-core assets **PCS12852** and **PCS499** being evaluated for monetization after the PCS499 trial termination[69](index=69&type=chunk)[76](index=76&type=chunk)[88](index=88&type=chunk) Comparison of Operating Expenses (Six Months Ended June 30) | Expense Category | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Research and development expenses | $3,342,509 | $5,181,912 | $(1,839,403) | | General and administrative expenses | $3,477,490 | $3,218,550 | $258,940 | - The **decrease in R&D expenses** for the first six months of 2023 compared to 2022 is mainly due to the **completion of the PCS12852 clinical trial** and the **early termination of the PCS499 trial**[93](index=93&type=chunk) - The **increase in G&A expenses** for the six months ended June 30, 2023, was primarily driven by a **$1.4 million professional fee expense** related to stock warrants, offset by a **$1.4 million decrease in employee stock-based compensation**[100](index=100&type=chunk) - The company's cash balance of **$8.7 million** as of June 30, 2023, is expected to fund operations only through the **second quarter of 2024**, raising **substantial doubt about its ability to continue as a going concern** without securing additional funding[111](index=111&type=chunk)[117](index=117&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=25&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company, as a smaller reporting company, has omitted this section as it is not applicable - Item 3 is **not applicable** to the company as it qualifies as a **smaller reporting company**[125](index=125&type=chunk) [Controls and Procedures](index=25&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded disclosure controls were effective as of June 30, 2023, with no material changes to internal controls during the quarter - Management concluded that as of June 30, 2023, the company's disclosure controls and procedures were **effective** at a **reasonable assurance level**[126](index=126&type=chunk) - **No changes** in internal control over financial reporting occurred during the quarter ended June 30, 2023, that **materially affected** or are likely to materially affect these controls[127](index=127&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=25&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) As of the reporting date, the company is not involved in any material legal proceedings - The company is currently **not a party to any material legal proceedings**[128](index=128&type=chunk) [Risk Factors](index=25&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company faces significant Nasdaq listing risk due to a minimum bid price deficiency, potentially leading to delisting and impacting liquidity and capital - On March 22, 2023, the company received a **deficiency letter from Nasdaq** for failing to maintain a **minimum bid price of $1.00 per share**[129](index=129&type=chunk) - The company has until **September 18, 2023**, to **regain compliance** with the Nasdaq minimum bid price rule[129](index=129&type=chunk) - **Potential delisting from Nasdaq** could lead to **reduced liquidity**, **limited market quotations**, and **challenges in raising additional financing**[132](index=132&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=25&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company reported no unregistered sales of equity securities, use of public offering proceeds, or issuer equity purchases during the period - There were **no unregistered sales of equity securities**, **no use of proceeds from public offerings**, or **no issuer purchases of equity securities** in the reported period[131](index=131&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk) [Other Information](index=26&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No directors or officers modified, adopted, or terminated Rule 10b5-1 trading plans during the second quarter of 2023 - **No modifications, adoptions, or terminations of Rule 10b5-1 trading plans** by directors or officers occurred during the second quarter of 2023[138](index=138&type=chunk) [Exhibits](index=26&type=section&id=ITEM%206.%20EXHIBITS) This section lists exhibits filed with the Form 10-Q, including the new CEO's employment agreement and officer certifications - Exhibits filed include the **employment agreement for the new CEO, George Ng**, and **certifications by the Principal Executive and Financial Officers**[139](index=139&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 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 001-39531 Processa Pharmaceuticals, Inc. (Exact name of registrant as specified in its charter) Delaware 45-1539785 (State ...

Processa Pharmaceuticals, Inc. (NASDAQ:PCSA) Q4 2022 Earnings Conference Call March 30, 2023 4:30 PM ET Company Participants Jim Stanker - CFO David Young - President & CEO Conference Call Participants Naz Rahman - Maxim Group Operator Greetings and welcome to the Processa Pharmaceuticals Year-End 2022 Earnings Call and Corporate Update. [Operator Instructions] As a reminder, this call is being recorded. It is now my pleasure to introduce Jim Stanker, Chief Financial Officer. Thank you, sir. You may begin. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual Report under Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2022 or ☐ Transitional Report under Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number 001-39531 Processa Pharmaceuticals, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Delaware 45-1539785 (IRS Employer ...

Processa Pharmaceuticals, Inc. (NASDAQ:PCSA) Q3 2022 Earnings Conference Call November 8, 2022 4:30 PM ET Company Participants Jim Stanker - CFO David Young - President & CEO Conference Call Participants Francois Brisebois - Oppenheimer Naz Rahman - Maxim Group Operator Greetings, and welcome to Processa Pharmaceuticals third-quarter 2022 earnings call and corporate update. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. As a remin ...

Processa Pharmaceuticals, Inc. (Nasdaq: PCSA) November 8, 2022 3Q2022 Disclaimer: Forward Looking Statements The following summary is provided for informational purposes only and does not constitute an offer or solicitation to acquire interests in the investment or any related or associated company. The information contained here is general in nature and is not intended as legal, tax or investment advice. Furthermore, the information contained herein may not be applicable to or suitable for an individual's ...

PART I: FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=ITEM%201%3A%20FINANCIAL%20STATEMENTS) This section presents the unaudited condensed consolidated financial statements, highlighting decreases in cash and assets, increased liabilities, and a widening net loss due to higher R&D expenses [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets | Financial Metric | September 30, 2022 ($) | December 31, 2021 ($) | | :--- | :--- | :--- | | Cash and cash equivalents | 9,054,576 | 16,497,581 | | Total Current Assets | 10,886,685 | 18,327,151 | | Total Assets | 18,604,465 | 26,463,505 | | Total Current Liabilities | 1,192,733 | 971,020 | | Total Liabilities | 1,364,440 | 978,405 | | Total Stockholders' Equity | 17,240,025 | 25,485,100 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations | Metric | Three Months Ended Sep 30, 2022 ($) | Three Months Ended Sep 30, 2021 ($) | Nine Months Ended Sep 30, 2022 ($) | Nine Months Ended Sep 30, 2021 ($) | | :--- | :--- | :--- | :--- | :--- | | Research and development expenses | 3,136,838 | 1,722,364 | 8,319,907 | 4,806,845 | | General and administrative expenses | 2,920,280 | 1,338,113 | 6,137,674 | 3,391,105 | | Operating Loss | (6,057,118) | (3,111,430) | (14,457,581) | (8,764,533) | | Net Loss | (6,020,410) | (2,987,217) | (14,411,909) | (8,243,740) | | Net Loss per Share (Basic & Diluted) | (0.37) | (0.19) | (0.90) | (0.54) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows | Cash Flow Metric | Nine Months Ended Sep 30, 2022 ($) | Nine Months Ended Sep 30, 2021 ($) | | :--- | :--- | :--- | | Net Cash Used In Operating Activities | (7,107,758) | (5,990,321) | | Net Cash (Used In) Provided By Financing Activities | (335,247) | 9,667,285 | | Net (Decrease) Increase in Cash | (7,443,005) | 3,676,964 | | Cash and Cash Equivalents – End of Period | 9,054,576 | 19,093,188 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The company is a clinical-stage biopharmaceutical company with five drugs in its pipeline: **Next Generation Capecitabine (PCS6422)**, **PCS12852**, **PCS499**, **PCS3117**, and **PCS11T**[18](index=18&type=chunk)[24](index=24&type=chunk) - Management believes current cash balances and available financing under the Lincoln Park Purchase Agreement are adequate for at least the next twelve months, but acknowledges that future operations depend on obtaining additional funding[25](index=25&type=chunk) - On March 23, 2022, the company entered into a Purchase Agreement with Lincoln Park Capital Fund, LLC, for up to **$15.0 million** of its common stock[28](index=28&type=chunk)[38](index=38&type=chunk) - Stock-based compensation expense for the nine months ended September 30, 2022, was **$6.05 million**, a significant increase from **$2.29 million** in the same period of 2021[45](index=45&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management analyzes the company's financial performance, detailing its drug pipeline progress, increased net loss from higher R&D and G&A expenses, and current liquidity position [Our Drug Pipeline](index=20&type=section&id=Our%20Drug%20Pipeline) Our Drug Pipeline | Drug | Disease Target | Development Stage | Upcoming Milestones | | :--- | :--- | :--- | :--- | | PCS6422 (Next Gen Capecitabine) | Metastatic Colorectal, Other Cancers | Phase 1B | 1H'23 - Complete Phase 1B Trial; 2023 - Initiate Phase 2B Trial | | PCS12852 | Gastroparesis | Phase 2A/2B | 2H'22 - Complete Phase 2A analysis; 2023 - Initiate Phase 2B Trial | | PCS499 | Ulcerative Necrobiosis Lipoidica | Phase 2B | 2023 - Complete Interim Analysis & Enrollment; 2023-2024 - Initiate Phase 3 Trial | | PCS3117 | Pancreatic, Other Cancers | Phase 2B | 2H'22 - 1H'23 - Define paths to FDA Approval | | PCS11T | Small Cell Lung, Other Cancers | Pre-IND | 2H'22 - Select Manufacturing Sites; Define paths to FDA Approval | - The Phase 1B trial for Next Generation Capecitabine (NGC) is expected to complete enrollment in the **first half of 2023**, with plans to initiate a Phase 2B trial later in **2023**[88](index=88&type=chunk) - The Phase 2A trial for PCS12852 in gastroparesis completed enrollment in **September 2022**, with early results showing improvements in gastric emptying; a Phase 2B study is planned for **2023**[20](index=20&type=chunk)[95](index=95&type=chunk) - Enrollment in the PCS499 Phase 2B trial has been delayed due to COVID-19 and the rarity of the disease; an interim analysis is expected in the **first half of 2023**[22](index=22&type=chunk)[102](index=102&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) - The company currently has no revenue from products[120](index=120&type=chunk) Results of Operations | Expense Category | Nine Months Ended Sep 30, 2022 ($) | Nine Months Ended Sep 30, 2021 ($) | Change ($) | | :--- | :--- | :--- | :--- | | Research and development expenses | 8,319,907 | 4,806,845 | +3,513,062 | | General and administrative expenses | 6,137,674 | 3,391,105 | +2,746,569 | | **Net Loss** | **(14,411,909)** | **(8,243,740)** | **+(5,819,310)** | - The increase in R&D expenses for the first nine months of 2022 was driven by higher payroll and related costs, a **$1.4 million** increase in stock-based compensation, and increased costs for three active clinical trials[123](index=123&type=chunk)[124](index=124&type=chunk) - The increase in G&A expenses for the first nine months of 2022 was primarily due to a **$2.3 million** increase in employee stock-based compensation[129](index=129&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) - As of September 30, 2022, the company had **$9.1 million** in cash and cash equivalents[140](index=140&type=chunk) - Net cash used in operating activities for the nine months ended September 30, 2022, was **$7.1 million**, an increase from **$6.0 million** in the prior-year period, mainly due to payments for clinical trials and increased salaries[135](index=135&type=chunk) - Management believes its current cash balance, along with funds available from the Lincoln Park Purchase Agreement and the ATM Offering, will be adequate for at least the next twelve months[142](index=142&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section is omitted as the company qualifies as a smaller reporting company, rendering market risk disclosures not applicable - This item is not applicable to the company as it qualifies as a smaller reporting company[152](index=152&type=chunk) [Controls and Procedures](index=35&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective as of September 30, 2022, with no material changes to internal controls during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of **September 30, 2022**[153](index=153&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control[154](index=154&type=chunk) PART II: OTHER INFORMATION [Legal Proceedings](index=35&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is not currently involved in any material legal proceedings - The company is not currently a party to any material legal proceedings[155](index=155&type=chunk) [Risk Factors](index=35&type=section&id=ITEM%201A.%20RISK%20FACTORS) No material changes to risk factors have occurred since the 2021 Annual Report on Form 10-K - There have been no material changes to the risk factors as described in the Annual Report on Form 10-K for the year ended **December 31, 2021**[156](index=156&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECU RITIES%20AND%20USE%20OF%20PROCEEDS) No unregistered securities were sold during the third quarter of 2022 - There were no sales of unregistered securities during the three months ended **September 30, 2022**[157](index=157&type=chunk) [Other Information](index=36&type=section&id=ITEM%205.%20OTHER%20INFORMATION) The company reported a change in its transfer agent during the quarter - On **July 25, 2022**, the company changed its transfer agent from Equiniti Trust Ltd. to Continental Stock Transfer and Trust Company[162](index=162&type=chunk) [Exhibits](index=36&type=section&id=ITEM%206.%20EXHIBITS) This section lists exhibits filed with the Form 10-Q, including management certifications and XBRL data files - The report lists several exhibits filed, including the First Amendment to the Lease Agreement, CEO and CFO certifications under Rule 13a-14(a) and Section 1350, and various Inline XBRL documents[163](index=163&type=chunk)