Financial Performance - Petros Pharmaceuticals has experienced net losses and negative cash flows from operations since inception, with an accumulated deficit of approximately $86.5 million as of September 30, 2022[135]. - Net sales for the nine months ended September 30, 2022, were $5,193,953, a decrease of 40% compared to $8,678,424 in the same period of 2021[178]. - The gross profit for the nine months ended September 30, 2022, was $3,785,867, representing 73% of net sales, down from $7,322,586 or 84% of net sales in 2021[188]. - The company experienced a $3,511,442 decrease in net sales of Stendra®, partially offset by a $26,971 increase in Medical Device sales[183]. - Net sales for the three months ended September 30, 2022, were $(1,457,732), a decrease of $3,602,902 or 168% compared to $2,145,169 in the same period of 2021[208][210][214]. - Gross loss for the three months ended September 30, 2022, was $(1,744,257), compared to a gross profit of $1,826,011 in the same period of 2021[219]. - For the three months ended September 30, 2022, the company reported a net loss of $(13,830,196), compared to a net loss of $(1,696,898) for the same period in 2021[271]. - Adjusted EBITDA for the three months ended September 30, 2022, was $(4,343,012), a decline from $(1,814,621) in the prior year[271]. Cash Flow and Liquidity - The company had cash of approximately $11.2 million and positive working capital of $10.8 million as of September 30, 2022[135]. - Cash on hand totaled $11,181,662 at September 30, 2022, down from $23,847,572 at December 31, 2021[236]. - Net cash used in operating activities for the nine months ended September 30, 2022, was $11,226,985, reflecting a net loss of $13,830,196[263]. - The company does not currently have sufficient available liquidity to fund its operations for at least the next 12 months, raising substantial doubt about its ability to continue as a going concern[239]. - The company is evaluating various financing strategies, including secured or unsecured debt, convertible debt, and equity offerings, to obtain additional liquidity[240]. Revenue and Sales Strategy - Petros' ED product portfolio includes Stendra® and external penile rigidity devices, with the Prescription Medications segment primarily focused on Stendra® sales in the U.S.[145]. - The company has shifted from in-person sales to online and telehealth-based sales due to COVID-19, impacting net revenues due to lower gross margins[139]. - The company plans to continue investing in research and development related to OTC strategies for Stendra®, anticipating a dramatic increase in product sales in the future[203]. - The company reported a significant decrease in prescription demand for Stendra since the second quarter of the year[277]. Research and Development - Petros is conducting non-clinical consumer studies for FDA approval of Stendra® for Non-Prescription/Over-The-Counter use, which could significantly increase product sales[137]. - The company expects to incur approximately $20 million in research and development expenses for H100™ over the next four to six years prior to FDA approval[243]. - Research and development expenses increased by 95% to $1,562,518 for the nine months ended September 30, 2022, compared to $799,803 in the same period of 2021[199]. - Research and development expenses increased by $455,340, or 162%, during the three months ended September 30, 2022, totaling $735,916 compared to $280,576 in 2021[224][227]. Licensing and Agreements - Petros entered into a License Agreement with Vivus for the commercialization of Stendra® for a one-time fee of $70 million, granting exclusive rights in the U.S., Canada, South America, and India[133]. - The Company entered into a Hybrid License for the development and commercialization of H100™, with an initial license fee of $100,000 and additional payments totaling $1,025,000 over the first three years[153]. - In the Vivus Settlement Agreement, the Company retained approximately $7.3 million of API inventory and executed a promissory note for $10,201,758[154]. Impairments and Reserves - The company recognized an impairment of approximately $7.5 million for the Stendra® product due to a significant decline in gross billings and higher than estimated returns[203]. - The company recorded an impairment of approximately $7.5 million for the Stendra® product intangible asset during the three months ended September 30, 2022[232]. - The Company increased its estimate of reserves for product returns by $2.7 million during the three months ended September 30, 2022, due to higher than estimated wholesaler returns[167]. Internal Controls and Compliance - The company identified a material weakness in internal controls, including insufficient monitoring and oversight, and plans to address these deficiencies in the second half of 2022[281]. - Management has hired an external consultant to assist in the remediation of internal control deficiencies[282]. - Management's evaluation of disclosure controls indicated they were not effective in ensuring timely and accurate reporting[280]. - The Company received a Nasdaq compliance letter on June 22, 2022, indicating it did not meet the minimum bid price of $1.00 per share, with a compliance period until December 19, 2022[160].

Licensing and Product Development - Petros Pharmaceuticals acquired the license for Stendra® for a one-time fee of $70 million, granting exclusive rights to sell in the U.S., Canada, South America, and India[125] - The company is developing H100™, a topical formulation for Peyronie's disease, having paid a total of $250,000 in initial and milestone payments, with additional annual payments due[141] - The company is conducting non-clinical studies for FDA approval of Stendra® for OTC use in treating erectile dysfunction[125] - Petros has entered into a Technology Transfer Service Agreement with Patheon Pharmaceuticals for the commercial production of Stendra® tablets[138] Financial Performance - For the six months ended June 30, 2022, net sales increased to $6,651,685 from $6,533,255 in the same period of 2021, representing a growth of approximately 1.8%[164] - The company recorded a gross profit of $5,530,125 for the six months ended June 30, 2022, compared to $5,496,575 in 2021, indicating a slight increase in profitability[164] - The company reported a loss from operations of $(2,142,618) for the six months ended June 30, 2022, an improvement from a loss of $(6,478,199) in the prior year[164] - The company experienced net losses and negative cash flows from operations since inception, with an accumulated deficit of $73 million as of June 30, 2022[221] - The company reported a net loss of $1,986,016 for the six months ended June 30, 2022, compared to a net income of $896,164 for the same period in 2021[246] Sales and Revenue Breakdown - Prescription Medicines accounted for $4,856,941 of net sales, while Medical Devices contributed $1,794,744 for the six months ended June 30, 2022[165] - Net sales for the six months ended June 30, 2022, were $6,651,685, a 2% increase from $6,533,255 in the same period of 2021, driven by a $6,479 increase in Stendra® sales and a $111,951 increase in Medical Device sales[170] - Gross billings for the six months ended June 30, 2022, were $16,785,478, up from $13,671,607 in the same period of 2021, indicating a growth in total demand for products[258] - The company reported gross billings of $10,273,597 for the three months ended June 30, 2022, compared to $6,135,885 for the same period in 2021, reflecting a strong quarterly performance[258] Operating Expenses and Cash Flow - Operating expenses decreased significantly to $7,672,743 in 2022 from $11,974,774 in 2021, primarily due to a gain on settlement with Vivus of $3,389,941[164] - Selling, general and administrative expenses decreased by $883,548 or 11% during the six months ended June 30, 2022, totaling $7,114,342[179] - Net cash used in operating activities for the six months ended June 30, 2022, was $9,475,509, compared to $2,346,366 for the same period in 2021, reflecting a significant increase in cash outflow[245] - The company utilized $1,076,974 in financing activities for the six months ended June 30, 2022, primarily for prepayments of a promissory note[248] Research and Development - Research and development expenses increased by $307,375 or 59% during the six months ended June 30, 2022, totaling $826,602, primarily due to increased clinical development expenses[184] - The company expects to incur approximately $14 million of research and development expenses relating to H100™ over the estimated four to six-year period prior to FDA approval[227] Debt and Financial Obligations - The principal amount of the promissory note to Vivus is $10,201,758, with a 6% annual interest rate, payable in quarterly installments until January 1, 2027[145] - As of June 30, 2022, the principal balance on the promissory note is $10,024,785, with interest expense recorded at $(303,398) for the period[145] - The company recognized a gain on settlement with Vivus, decreasing total liabilities by $3,389,941 during the six months ended June 30, 2022[180] - The company has a promissory note with a principal amount of $10,201,758 as part of a settlement agreement, indicating ongoing financial obligations[237] Market and Strategic Outlook - The company anticipates continued significant sales growth from newly manufactured products and ongoing investments in research and development related to Stendra®[160] - The company is exploring additional financing options to support product development and operations, indicating a proactive approach to capital raising[235] - The company is focused on expanding its service offerings through internal development, collaborations, and strategic acquisitions, highlighting its growth strategy[236] - The company anticipates needing to raise additional funds or curtail discretionary expenditures after August 16, 2023, to maintain an appropriate level of cash for operations[221] Challenges and Compliance - Petros has faced challenges with the Health Canada approval process for Stendra® due to a Notice of Deficiency issued in April 2020[140] - The company has a compliance period until December 19, 2022, to regain compliance with Nasdaq's minimum bid price requirement of $1.00 per share[146] Miscellaneous - The company has retained approximately $7.3 million of API inventory under the Vivus Supply Agreement, which is expected to support future sales[142] - The company has not entered into any off-balance sheet financial guarantees, maintaining a conservative financial position[249] - The company is classified as a smaller reporting company and is not required to provide quantitative and qualitative disclosures about market risk[260] - No specific financial performance metrics or user data were disclosed in the conference call[260] - Future outlook and performance guidance were not provided due to the company's reporting status[260] - There were no mentions of new product or technology developments in the conference call[260] - Market expansion and acquisition strategies were not discussed in the provided content[260] - Other strategic initiatives were not highlighted in the conference call[260] - The company did not disclose any revenue figures or growth percentages[260] - No information regarding user data or customer metrics was available[260] - The company did not provide any insights into competitive positioning or market trends[260] - Overall, the content lacks detailed financial data and strategic insights[260]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 for the quarterly period ended March 31, 2022 Or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 FORM 10-Q for the transition period from to (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 001-39752 Petros Pharmaceuticals, Inc. (Exact name of registrant as specified in its charter) Delaware 85-1410058 ( ...

Licensing and Agreements - Petros entered into a License Agreement with Vivus for the commercialization of Stendra® for a one-time fee of $70 million, granting rights to sell in the U.S., Canada, South America, and India [271]. - A Technology Transfer Service Agreement was established with Patheon Pharmaceuticals for the commercial production of Stendra® tablets, effective January 20, 2022 [285]. - The company has a sublicense agreement with Acerus Pharmaceuticals for Stendra® in Canada, which includes a one-time fee of $100,000 and potential additional fees upon regulatory approval [287]. - The principal amount of the promissory note to Vivus is $10,201,758, payable in quarterly installments starting April 1, 2022, through January 1, 2027 [292]. - The company executed a promissory note in January 2022 for $10,201,758 in connection with the Vivus Settlement Agreement [338]. Financial Performance - Net sales for the year ended December 31, 2021, were $7,811,264, a decrease from $9,559,469 in 2020, representing a decline of approximately 18.3% [310]. - Gross profit increased to $6,211,698 in 2021 from $5,513,003 in 2020, indicating a growth of about 12.7% [310]. - Total operating expenses rose to $24,259,714 in 2021 from $22,795,042 in 2020, reflecting an increase of approximately 6.4% [310]. - The loss from operations was $18,048,016 in 2021, compared to a loss of $17,282,039 in 2020, indicating a worsening of about 4.4% [310]. - The net loss for 2021 was $8,986,676, a significant improvement from the net loss of $20,585,925 in 2020, representing a reduction of approximately 56.3% [310]. - Net cash used in operating activities for the year ended December 31, 2021 was $11,862,031, reflecting a net loss of $8,986,676 [364]. - Net cash provided by financing activities was $18,569,909 for the year ended December 31, 2021, primarily from the issuance of common stock and warrant exercises [367]. - The company had a net cash increase of $6,707,878 for the year ended December 31, 2021 [363]. - Adjusted EBITDA for 2021 was $(11,170,026), compared to $(10,621,601) in 2020, indicating a slight decline in operational performance [377]. Sales and Marketing Strategy - The company has established its own internal sales and marketing functions for Stendra® after terminating its relationship with an affiliate contractor in 2019, enhancing its multi-channel sales strategy [273]. - The company experienced a shift from in-person sales to online sales due to COVID-19, which generally have lower gross margins, impacting net revenues [277]. - Petros manages operations through two segments: Prescription Medications, primarily Stendra®, and Medical Devices, focusing on vacuum erection devices [281]. - The company plans to invest in research and development related to Stendra®, anticipating significant future sales growth [306]. Research and Development - Petros acquired an exclusive global license for H100™, a novel treatment for Peyronie's disease, and is conducting non-clinical studies for potential FDA approval for Stendra® as an over-the-counter product [274]. - Research and development expenses increased to $1,788,491 in 2021 from $459,636 in 2020, marking a substantial rise of about 288.5% [310]. - Research and development expenses increased by $1,328,855 or 289% in 2021, totaling $1,788,491, driven by increased licensing fees and consulting fees related to OTC strategies [328]. - The company expects to incur approximately $14 million in research and development expenses for H100™ over the next four to six years prior to FDA approval [342]. Capital Management - The company is exploring additional ways to raise capital, including public or private equity or debt financings, to support its business strategy [351]. - The company sold 3,323,616 shares of common stock at $1.715 per share in October 2021, raising approximately $5.5 million in net proceeds [344]. - The company sold 2,153,333 shares of common stock at an offering price of $3.00 per share, raising approximately $9.3 million in net proceeds from the November Offering [346]. - In December 2021, the company sold 1,545,183 shares of common stock at an offering price of $3.43 per share, generating approximately $6.9 million in net proceeds from the December Offering [348]. - The company repaid the remaining balance of $10,201,758 on its Senior Debt on November 3, 2021 [360]. Operational Challenges - Product returns significantly increased to $8,342,505 in 2021 from $1,177,473 in 2020, which may impact future revenue recognition [382]. - The company emphasizes that gross billings is a non-GAAP measure and should not be viewed as a substitute for net sales in assessing operational performance [378]. - The change in fair value of derivative liability resulted in a gain of $9,430,000 in 2021, contrasting with a loss of $1,680,000 in 2020 [310]. - The change in the fair value of derivative liability was $9,430,000 for the year ended December 31, 2021, primarily due to a decline in the company's stock price [332]. - The company reported a change in the fair value of derivative liability of $(9,430,000) in 2021, compared to $1,680,000 in 2020, which may affect future financial stability [377].

Licensing and Agreements - Petros entered into a License Agreement with Vivus for the commercialization of Stendra® for a one-time fee of $70 million, granting rights to sell in the U.S., Canada, South America, and India [149]. - Petros acquired an exclusive global license for H100™, a topical formulation for treating Peyronie's disease, with various payments totaling $1.05 million made to Hybrid Medical LLC for the license [151]. - The company will pay MTPC a royalty of 5% on the first $500 million of net sales of Stendra® and 6% thereafter until patent expiration in April 2025 [161]. Sales and Revenue - Net sales for the three months ended September 30, 2021, were $2,145,169, a decrease of 38% compared to $3,464,695 in the same period in 2020 [186]. - Prescription Medicines net sales were $1,377,291 for the three months ended September 30, 2021, down from $2,590,151 in 2020, primarily due to increased sales allowances [186][191]. - Net sales for the nine months ended September 30, 2021, were $8,678,424, a 31% increase compared to $6,630,180 for the same period in 2020 [213][219]. - Gross billings for the nine months ended September 30, 2021, were $22,202,615, compared to $13,919,650 for the same period in 2020, representing a 59.5% increase [283]. - Net sales for the nine months ended September 30, 2021, were $8,678,424, up from $6,630,180 in 2020, reflecting a 30.8% increase [283]. Expenses and Losses - The Company incurred a loss from operations of $3,596,617 for the three months ended September 30, 2021, compared to a loss of $2,336,421 in the same period in 2020 [185]. - The Company’s total operating expenses for the three months ended September 30, 2021, were $5,422,628, an increase from $4,819,213 in 2020 [185]. - The Company’s net loss for the three months ended September 30, 2021, was $1,696,898, compared to a net loss of $3,300,363 in the same period in 2020 [185]. - The net loss for the nine months ended September 30, 2021, was $800,734, compared to a net loss of $15,197,953 for the same period in 2020 [212]. - The company reported a net loss of $800,734 for the nine months ended September 30, 2021, significantly reduced from a net loss of $15,147,953 in 2020 [265]. Cost Management - Cost of sales decreased by $662,745 or 68% during the three months ended September 30, 2021, compared to the same period in 2020, with cost of sales as a percentage of net sales dropping from 28% to 15% [194]. - Gross profit for the three months ended September 30, 2021, was $1,826,011, representing an increase to 85% of net sales compared to 72% in 2020 [195]. - Gross profit for the nine months ended September 30, 2021, was $7,322,586, representing 84% of net sales, compared to $4,325,011 or 65% for the same period in 2020 [223]. - Cost of sales for the nine months ended September 30, 2021, was $1,355,838, a decrease of $949,331 or 41% compared to $2,305,169 for the same period in 2020 [222]. Research and Development - The Prescription Medications segment primarily consists of Stendra®, with expenses related to the development of H100™, which is in early development stages and has not yet sought FDA approval [159]. - Research and development expenses for the three months ended September 30, 2021, were $280,576, an increase of $243,748 or 662% compared to the same period in 2020 [203]. - Research and development expenses for the nine months ended September 30, 2021, were $799,803, an increase of $492,007 or 160% compared to $307,796 for the same period in 2020 [231]. - The company expects to incur approximately $14 million in research and development expenses related to H100™ over the estimated four to six-year period prior to FDA approval [247]. Operational Adjustments - The company reduced its sales representative headcount in March 2020 due to COVID-19, maintaining a core team that engaged with physicians via telephone and videoconference [154]. - The COVID-19 pandemic may continue to negatively impact the company's sales and operations in fiscal 2021 and beyond [153]. - The decrease in Medical Device sales was attributed to decreased demand in both domestic and international markets [191]. Financial Position and Cash Flow - The company reported a cash balance of $8,135,184 as of September 30, 2021, down from $17,139,694 at December 31, 2020 [240]. - The company experienced net cash used in operating activities of $3,557,732 for the nine months ended September 30, 2021, compared to $10,782,430 in 2020, indicating an improvement [264]. - Net cash used in financing activities for the nine months ended September 30, 2021, was $5,446,778, consisting of payments of senior debt of $4,912,541 and a senior debt end-of-term fee of $534,237 [268]. - Interest expense on senior debt for the nine months ended September 30, 2021, was $356,873, a decrease of $728,474 or 67% from $1,085,347 in 2020, due to a pay down of $6.4 million of senior debt [237]. Strategic Initiatives - The company has engaged in a national non-personal promotion campaign reaching nearly 30,000 healthcare professionals to enhance product awareness [150]. - The company is negotiating with multiple contract manufacturers to replace Vivus for the supply of Stendra® [163]. - The company plans to explore additional ways to raise capital, including public or private equity or debt financings, to support its business strategy [253]. - The company is focused on expanding its service offerings through internal development, collaborations, and strategic acquisitions [254]. - The company issued 3,323,616 shares of common stock in October 2021, receiving approximately $5.5 million in net proceeds for expansion and working capital [249]. - The company repaid the remaining balance of its senior debt on November 3, 2021 [260].

Table of Contents Or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from to UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 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 June 30, 2021 (973) 242-0005 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: | Title of e ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) Delaware 85-1410058 (State of Incorporation) (I. R. S. Employer Identification No.) 1185 Avenue of the Americas, 3rd Floor, New York, New York 10036 (Address of principal executive offices) (Zip Code) (973) 242-0005 ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended March 31, 2021 (Registrant's telephone number, including area code ...

Licensing and Agreements - Petros entered into a License Agreement with Vivus for the commercialization of Stendra® for a one-time fee of $70 million, granting rights to sell in the U.S., Canada, South America, and India [206]. - Petros acquired an exclusive global license for the development of H100™, a topical formulation for treating Peyronie's disease, with initial payments totaling $350,000 and additional milestone payments scheduled [208][221]. - In December 2020, Vivus underwent a reorganization, with IEH Biopharma LLC assuming its contractual obligations, while Petros retains step-in rights with MTPC in case of termination of the MTPC License [219]. - The company acquired the exclusive license to H100™ for an initial fee of $100,000, with additional milestone payments and royalties based on net sales [266]. Sales and Marketing - The company has established its own internal sales and marketing functions for Stendra® after terminating an underperforming affiliate contractor in 2019, aiming for a strong multi-channel sales campaign in 2021 and beyond [207]. - The company has engaged in a national non-personal promotion campaign reaching nearly 30,000 healthcare professionals to enhance product awareness [207]. - Petros has reduced its sales representative headcount due to COVID-19 restrictions but maintains a core team for virtual engagement with healthcare professionals [210]. - The company is well-positioned for growth with a focus on expanding its product offerings and market presence in men's health therapeutics [207]. Financial Performance - Net sales for the year ended December 31, 2020 were $9,559,469, a decrease of 39% compared to $15,577,166 in 2019, primarily due to a $4,753,162 decrease in Stendra® sales and a $1,264,535 decrease in Medical Device sales [238][239][243]. - Gross profit for the year ended December 31, 2020 was $5,513,003, representing 58% of net sales, compared to $8,150,055 or 52% in 2019 [238][247]. - Total operating expenses for the year ended December 31, 2020 were $22,795,042, a decrease of 17% from $27,462,260 in 2019, driven by lower selling, general and administrative expenses [238][251]. - Selling, general and administrative expenses decreased by $4,052,255 or 21% during the year ended December 31, 2020, primarily due to reduced payroll and marketing expenses [248][251]. - The company recorded a net loss of $20,585,925 for the year ended December 31, 2020, compared to a net loss of $32,511,300 in 2019 [238]. - Adjusted EBITDA for 2020 was $(9,790,922), compared to $(10,402,740) in 2019, indicating a slight improvement in operational performance [307]. Expenses and Costs - Research and development expenses for the year ended December 31, 2020 were $459,636, with no expenses reported in 2019 [252][253]. - Cost of sales for the year ended December 31, 2020 was $4,046,466, a decrease of 46% from $7,427,111 in 2019, with cost of sales as a percentage of net sales decreasing from 48% to 42% [238][246]. - Depreciation and amortization expenses for the year ended December 31, 2019, were $5,291,107, with $4,145,833 from Prescription Medicines and $1,145,274 from Medical Devices [255]. - Interest expense for senior debt decreased by $1,104,840 or 45% to $1,323,424 for the year ended December 31, 2020, due to a pay down of $6.2 million of senior debt and a decreased weighted average interest rate [258]. Cash Flow and Capital - Cash and cash equivalents totaled $17,139,694 at December 31, 2020, significantly up from $2,145,812 at December 31, 2019 [261]. - The company expects to incur approximately $14 million in research and development expenses for H100™ over a four to six-year period prior to FDA approval [269]. - The company is exploring additional ways to raise capital, including public or private equity or debt financings, to support operations and business strategy [270]. - The Company reported a net cash used in operating activities of $15,305,325 for the year ended December 31, 2020, compared to a net cash provided of $2,532,479 in 2019 [295]. - The net cash provided by financing activities was $30,303,840 in 2020, primarily from net proceeds of $21,549,375 from mergers and $15,500,000 from subordinated related party term loans [300]. Inventory and Sales Quality - The company’s significant customer accounted for approximately 85% of total gross sales in 2020, down from 86% in 2019 [240]. - The company’s inventory is stated at the lower of cost or net realizable value, with adjustments for excess and obsolescence based on factors such as expiry date and inventory turnover [229]. - The company utilizes the expected value method for estimating variable consideration related to sales, which includes discounts, rebates, and returns [225][226]. - Product returns increased to $1,177,473 in 2020 from $8,726,460 in 2019, reflecting a change in customer behavior [312]. - Chargebacks rose sharply to $1,378,742 in 2020 compared to $161,730 in 2019, indicating potential issues with sales quality [312]. Other Financial Information - The Company issued 245,933 preferred units in a private placement, raising net proceeds of $2.7 million [291]. - The total principal balance of subordinated promissory notes and accrued PIK interest was $0 as of December 31, 2020, following their conversion into common stock [290]. - The Company recorded depreciation and amortization expense of $6,660,438 for 2020, up from $5,291,107 in 2019 [307]. - The Company had a net cash used in investing activities of $4,633 in 2020, a decrease from $71,540 in 2019 [298]. - The Company received $20,551 in proceeds from the exercise of warrants related to the private placement in November 2020 [293]. - The Company did not enter into any off-balance sheet financial guarantees or derivative contracts that are not reflected in its financial statements [302]. - The company is classified as a smaller reporting company and is not required to provide detailed market risk disclosures [313].