# EDGAR Filing Document

**Accession Number:** 0000908259
**File Stem:** 0001493152-25-024676
**Filing Date:** 2025-11
**Character Count:** 652735
**Document Hash:** b67d146952e8a1f66042243e86e53f56
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-25-024676.hdr.sgml**: 20251121

**ACCESSION NUMBER**: 0001493152-25-024676

**CONFORMED SUBMISSION TYPE**: S-1

**PUBLIC DOCUMENT COUNT**: 85

**FILED AS OF DATE**: 20251121

**DATE AS OF CHANGE**: 20251121

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Oncotelic Therapeutics, Inc.
- **CENTRAL INDEX KEY:** 0000908259
- **STANDARD INDUSTRIAL CLASSIFICATION:** PHARMACEUTICAL PREPARATIONS [2834]
- **ORGANIZATION NAME:** 03 Life Sciences
- **EIN:** 133679168
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-1
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-291724
- **FILM NUMBER:** 251508848

**BUSINESS ADDRESS:**
- **STREET 1:** 29397 AGOURA RD.
- **STREET 2:** #107
- **CITY:** AGUORA HILLS
- **STATE:** CA
- **ZIP:** 91301
- **BUSINESS PHONE:** 650-635-7000

**MAIL ADDRESS:**
- **STREET 1:** 29397 AGOURA RD.
- **STREET 2:** #107
- **CITY:** AGUORA HILLS
- **STATE:** CA
- **ZIP:** 91301

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MATEON THERAPEUTICS INC
- **DATE OF NAME CHANGE:** 20160613

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** OXIGENE INC
- **DATE OF NAME CHANGE:** 19930628

?xml version='1.0' encoding='ASCII'?

As filed with the Securities and Exchange Commission on November 21, 2025

**Registration No. 333-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;** 

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM S-1**

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933

**Oncotelic Therapeutics, Inc.**

(Exact name of Registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **5417** | **13-3679168** |
| (Incorporation | (Primary Standard Industrial | (I.R.S. Employer |
| or organization) | Classification Code Number) | Identification Number) |

---

**29397 Agoura Road,** **Suite 107**

**Agoura Hills** **, CA 91301**

**(650)** **635-7000**

------

(Name, address, telephone number of agent for service)

**Vuong Trieu**

**Chief Executive Officer**

**Oncotelic Therapeutics, Inc.**

**29397 Agoura Road,** **Suite 107**

**Agoura Hills** **, CA 91301**

**(650)** **635-7000**

------

(Address and Telephone Number of Registrant's Principal Executive Offices and Principal Place of Business)

Communication Copies to

**James A Mercer III**

**Sheppard Mullin Richter & Hampton LLP**

**12275 El Camino Real, Suite 100**

**San Diego, CA 92130**

**Telephone: (858) 720-7469**

**Email: jmercer@sheppardmullin.com**

Approximate date of proposed sale to the public: As soon as practicable and from time to time after the effective date of this registration statement.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. ☒

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.

If this Form is a post-effective amendment filed pursuant to rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☐ Smaller reporting company ☒ <br> (Do not check if a smaller reporting company) Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

**The Registrant hereby may amend this registration statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the registration statement shall become effective on such date as the Commission, acting pursuant to such Section 8(a), may determine.**

The information in this prospectus is not complete and may be changed without notice. The Selling Security Holders may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities, and neither the Registrant nor the Selling Security Holders are soliciting offers to buy these securities, in any state where the offer or sale of these securities is not permitted.

---

| | | |
|:---|:---|:---|
| **PRELIMINARY PROSPECTUS** | **SUBJECT TO COMPLETION** | **DATED NOVEMBER 21, 2025** |

---

**ONCOTELIC THERAPEUTICS, INC.**

309,717,647 SHARES OF COMMON STOCK

This prospectus relates to the resale of 309,717,647 shares of our common stock, par value $0.01 per share, which may be offered by Mast Hill Fund, LP ("Mast Hill" or the "Selling Stockholder") from time to time. The shares offered in this prospectus were transferred to Mast Hill in connection with the Note Purchase Agreement dated as of July 31, 2025 (the "Note Purchase Agreement") and the Equity Purchase Agreement dated as of August 1, 2025 (the "Equity Purchase Agreement"), as follows: (a) up to 294,117,647 shares of common stock to be issued to Mast Hill pursuant to put notices under the Equity Purchase Agreement; (b) 3,350,000 shares underlying warrants issued to Mast Hill pursuant to the Equity Purchase Agreement; (c) 8,000,000 shares issuable to Mast Hill on conversion of the indebtedness issued under the Note Purchase Agreement; (c) 2,000,000 shares underlying warrants issued to Mast Hill pursuant to the Note Purchase Agreement; (d) 2,250,000 Commitment Fee Shares issued to Mast Hill under the Note Purchase Agreement and (e) pursuant to Rule 416 under the Securities Act of 1933, as amended (the "Securities Act"), an indeterminate number of shares of common stock that are issuable upon stock splits, stock dividends, recapitalizations or other similar transactions affecting the shares of the selling stockholder.

The shares of common stock which may be sold pursuant to this prospectus would constitute 39.1% of the Company's issued and outstanding common stock as of November 17, 2025 (294,117,647 divided by current outstanding of 442,596,586 plus 294,117,647 for a total of 736,714,233), assuming that we sell all 294,117,647 to Mast Hill under the Equity Purchase Agreement, the indebtedness under the NPA is converted into 8,000,000 shares of common stock, and the warrants are exercised for an additional 5,350,000 shares of Common stock.

Mast Hill is the Selling Stockholder and is deemed to be an "underwriter" within the meaning of the Securities Act and any broker-dealers or agents that are involved in selling the shares may be deemed to be "underwriters" within the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting commissions or equivalent expenses and expenses of legal counsel applicable to the sale of the shares.

The Selling Stockholder may offer all or part of the shares for resale from time to time through public or private transactions, at either prevailing market prices or at privately negotiated prices. We will not receive proceeds from Mast Hill's sale of shares of our common stock in the open market or otherwise. However, we will receive cash proceeds from Mast Hill pursuant to the "Put Notices" that we issue to them under the Equity Purchase Agreement. We will pay for all expenses of this Offering, except that the Selling Stockholder will pay fifty percent (50%) of any broker discounts or commissions or equivalent expenses and all expenses of legal counsel applicable to the sale of the shares.

Our common stock is subject to quotation the OTCQB Market under the symbol "OTLC". On November 17, 2025, the last reported sales price for our common stock was $0.0850 per share. We urge prospective purchasers of our common stock to obtain current information about the market prices of our common stock. While our common stock is quoted on OTC Markets, there has been limited trading volume of our stock. There is no guarantee that an active trading market will develop in our securities.

An investment in our common stock involves a high degree of risk. Our independent registered public accounting firm has expressed substantial doubt as to our ability to continue as going concern. You should purchase our common stock only if you can afford a complete loss of your purchase. We urge you to read carefully the "Risk Factors" section beginning on page 7 where we describe specific risks associated with an investment in these securities before you make your investment decision.

**This Offering is highly speculative, and these securities involve a high degree of risk and should be considered only by persons who can afford the loss of their entire investment. Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.**

The date of this prospectus is [●], 2025.

**Table of Contents**

The following table of contents has been designed to help you find information contained in this prospectus. We encourage you to read the entire prospectus.

---

| | |
|:---|:---|
| [Prospectus Summary](#a_001) | 1 |
| [Summary of Financial Information](#a_002) | 5 |
| [Special Note Regarding Forward-Looking Statements](#a_003) | 6 |
| [Risk Factors](#a_004) | 7 |
| [Use of Proceeds](#a_005) | 24 |
| [Determination of Offering Price](#a_006) | 24 |
| [Dilution](#a_007) | 24 |
| [Selling Security Holders](#a_008) | 25 |
| [The Offering](#a_009) | 27 |
| [Plan of Distribution](#a_010) | 31 |
| [Description of Securities to be Registered](#a_011) | 33 |
| [Legal Matters](#Rma_001) | 35 |
| [Named Experts](#Rma_002) | 35 |
| [Where You Can Find More Information](#a_012) | 35 |
| [Description of Business](#a_013) | 36 |
| [Description of Property](#v_001) | 55 |
| [Legal Proceedings](#v_002) | 56 |
| [Management's Discussion and Analysis of Financial Condition and Results of Operation](#v_003) | 56 |
| [Directors, Executive Officers and Corporate Governance](#v_004) | 70 |
| [Executive Compensation](#v_005) | 72 |
| [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](#v_006) | 78 |
| [Certain Relationships and Related Transactions, and Director Independence](#v_007) | 80 |
| [Shares Eligible for Future Sales](#x_001) | 81 |
| [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](#r_001) | F-1 |
| [Financial Statements](#rr_003) | F-1 |

---

Please read this prospectus carefully and in its entirety. This prospectus contains disclosure regarding our business, our financial condition and results of operations and risk factors related to our business and our common stock, among other material disclosure items. We have prepared this prospectus so that you will have the information necessary to make an informed investment decision.

You should rely only on information contained in this prospectus. We have not authorized any other person to provide you with different information. This prospectus is not an offer to sell, nor is it seeking an offer to buy, these securities in any state where the offer or sale is not permitted. The Selling Stockholder may not sell the securities listed in this prospectus until the registration statement filed with the Securities and Exchange Commission is effective. The information in this prospectus is complete and accurate as of the date on the front cover, but the information may have changed since that date.

The registration statement containing this prospectus, including the exhibits to the registration statement, provides additional information about us and our common stock offered under this prospectus. The registration statement, including the exhibits and the documents incorporated herein by reference, can be read on the Securities and Exchange Commission website or at the Securities and Exchange Commission offices mentioned under the heading "Where You Can Find More Information."

i

**PROSPECTUS SUMMARY**

You should carefully read all information in the prospectus, including the financial statements and their explanatory notes under the Financial Statements prior to making an investment decision.

*This summary highlights selected information appearing elsewhere in this prospectus. While this summary highlights what we consider to be important information about us, you should carefully read this entire prospectus before investing in our common stock, especially the risks and other information we discuss under the headings "Risk Factors", our "Management's Discussion and Analysis of Financial Condition and Results of Operation" and our consolidated financial statements and related notes beginning on page F-1. Our fiscal year end is December 31 and our audited financial statements for fiscal years ended December 31, 2024 and 2023 as well as our unaudited financial statements for the 9-month periods ending September 30, 2025 and 2024 are included in this prospectus. Some of the statements made in this prospectus discuss future events and developments, including our future strategy and our ability to generate revenue. These forward-looking statements involve risks and uncertainties which could cause actual results to differ materially from those contemplated in these forward-looking statements. See "Special Note Regarding Forward-Looking Statements" at page 6 of this prospectus.*

*Except as otherwise required by the context, references in this prospectus to the "Oncotelic," "Company," "we," "our," "us" refer to Oncotelic Therapeutics, Inc. and its subsidiary entities. Mast Hill Fund, LP is referred to herein as "Mast Hill" or the "Selling Stockholder".*

This summary contains basic information about us and the offering. Because it is a summary, it does not contain all the information that you should consider before investing. You should read the entire prospectus carefully, including the risk factors and our financial statements and the related notes to those statements included in this prospectus.

We have not authorized anyone to provide you with different information and you must not rely on any unauthorized information or representation. We are not making an offer to sell these securities in any jurisdiction where an offer or sale is not permitted. This document may only be used where it is legal to sell these securities. You should assume that the information appearing in this prospectus is accurate only as of the date on the front of this prospectus, regardless of the time of delivery of this prospectus, or any sale of our common stock. Our business, financial condition and results of operations may have changed since the date on the front of this prospectus. We urge you to carefully read this prospectus before deciding whether to invest in any of the common stock being offered.

**Overview**

We are a clinical-stage biopharmaceutical company developing drugs for the treatment of orphan oncology indications, developing antisense and small molecule injectable drugs for the treatment of cancer. After the acquisition of Mateon Therapeutics, Inc through a reverse merger in 2019, we realigned the company pipeline to focus on various cancers, including but not limited to rare pediatric cancers. The United States Food and Drug Administration ("*FDA*") has granted us Rare Pediatric Designations ("*RPD*") for pediatric Diffuse Intrinsic Pontine Glioma ("*DIPG*") for OT-101, which was transferred to our joint venture as part of the joint venture agreement (see "*JV*" below), pediatric melanoma for CAP4 and acute myeloid leukemia ("*AML*") for Oxi4503. In addition, the Company, through it's JV, is developing 5 additional products for treatments of various cancers. Each of the products being developed by the JV has the potential of becoming very successful drugs. The JV is contemplating developing and obtaining regulatory approval for each of the 5 additional products via different regulatory pathways and in various countries and regions. Further, the Company aims to capitalize on a voucher program in the United States ("*US*"). By focusing on capitalizing on the RPD we anticipate: 1) reducing the cost of clinical development by way of a smaller and faster clinical trial, 2) acceleration of the approval process and final approval, 3) obtaining regulatory/ marketing exclusivity for up to 12 years as a biologic, and 4) obtaining vouchers worth a significantly large monetary value upon regulatory approval, which can be upwards of several million dollars. Approval in the US could allow for approval in the rest of the world ("*ROW*") using the US dossier. Phase 3 clinical trials for approval in adult indications could be conducted following the positive interim read of the pediatric trials. This approach maximizes return on investment for the shareholders.

Concurrently we also explore opportunities to create value for shareholders by forming strategic alliances and/or licensing our product portfolio. In this connection, in March 2022, the Company entered into a joint venture ("*JV*") with Dragon, affiliates of Golden Mountain Partners, LLC, to form GMP Biotechnology, Limited ("*GMP Bio*"). GMP Bio and the Company are also looking to take the JV into an initial public offering ("*IPO*") of the JV and which is anticipated to be a liquidity event for Company, especially if the IPO is successful. While we believe that the IPO can be completed and would be successful, we cannot provide assurance for either of the events to occur; or if they occur, and then whether the IPO would be successful.

We believe we are well positioned as a biotech company with our drug candidate OT-101 through our JV- targeting high value TGF-β2, and the new product portfolio being developed by the JV, for various cancers and COVID-19, PointR artificial intelligence (*"AI"*) for clinical trials, research and development, Edgepoint for developing technologies for manufacturing and for developing technologies for supporting our COVID-19 programs, our vascular disruptor proven safe in more than 500 patients capable of causing massive antigen release which would stimulate immune response against the cancerous tumor and apomorphine, which we in-licensed in 2021, for developing against Parkinson's Disease (*"PD"*), erectile disfunction (*"ED"*) and female sexual disfunction (*"FSD"*).

We may also plan to continue to develop OT-101, through our JV, an antisense against TGF-β2 – for the treatment of various viruses, which would include the severe acute respiratory syndrome ("*SARS*") and the coronavirus ("*COVID-19*"), on its own and in conjunction with other compounds. Viral replication cannot occur without TGF-β; and TGF-β surge and a cytokine storm cannot occur without TGF-β. A Phase 2 trial was completed for OT-101 in South America. This was a randomized, double-blind, placebo-controlled Phase 2 study to evaluate the safety and efficacy of OT- 101 in adult patients hospitalized with positive COVID-19 and pneumonia. Based on the final results of the trial, the trial was planned to be expanded into a Phase 3 trial; however with the impact of COVID-19 reducing in the past year, the Company will be re-evaluating this treatment for further development upon the occurrence or recurrence of the COVID-19 or any similar virus. We were conducting an observational study in conjunction with the Biomedical Advanced Research and Development Authority ("*BARDA*". For more information on BARDA, refer to our 2023 Annual Report on Form 10-K filed with the SEC on April 12, 2024. At this time, since the impact of COVID-19 has significantly reduced, the development of OT-101 for COVID-19 is not a top priority. In addition, during 2020 and 2021, the Company was developing Artemisinin as a potential therapy for the virus causing COVID-19. Again, with the impact of COVID-19 reducing over the past year or so, we have put on hold any further development of Artemisinin, till we have another severe virus situation. We will focus on any future development on Artemisinin against other respiratory viruses with unmet needs when the circumstances arise. For more information on Artemisinin, refer to our 2022 Annual Report on Form 10-K filed with the SEC on April 14, 2023.

In September 2021, Oncotelic entered into an exclusive License Agreement (the "Agreement") with Autotelic, Inc. ("*Autotelic*"), pursuant to which Autotelic granted Oncotelic the exclusive right and license to certain Autotelic Patents for AL-101 - an intranasal apomorphine asset with clear 505(b)2 pathway to approval for PD as well unique mechanism of action for treatment of ED and FSD. For more information on AL-101, refer to our 2022 Annual Report on Form 10-K filed with the SEC on April 14, 2023.

We currently have three primary drugs of our own, 6 drugs through our JV, and AI technology programs we are seeking to advance, presently or in the future:

● AL-101 - Intranasal drug and delivery system for intra-nasal Apomorphine for the treatment of PD, ED and FSD.

● CA4P- a vascular disrupting agent ("VDA") - in combination with Ipilimumab for the treatment of solid tumors with focus on melanoma in adult and pediatric melanoma. A RPD has been granted to the Company by the FDA for pediatric melanoma.

● Oxi4503- a second generation VDA - for the treatment of liquid tumors with focus on childhood leukemia. A RPD has been granted to the Company by the FDA for AML.

● OT-101 - an antisense against TGF-β2 –for the treatment of various cancers and for the treatment of various viruses, including COVID-19, on its own and in conjunction with other compounds.. This is being advanced through our JV.

● Five additional nanoparticle products - for the treatment of various cancers, using various regulatory pathways and for various regions/countries. This is being advanced through our JV.

● Artemisinin – a natural derivative from an Asian herb Artemisia Annua - Artemisinin has shown to be highly potent at inhibiting the ability of various viruses to multiply. This will be advanced through our JV at an appropriate time.

● Developing newer AI based technologies to enhance the development and commercialization of support technologies. The JV has acquired a non-exclusive license for the AI platform developed by PointR/EdgePoint for implementation in a planned CDMO.

In November 2022, the Company formed a Decentralized autonomous organization ("*DAO*") entity, Pet2DAO, Inc. ("*Pet2DAO*"), as a wholly owned subsidiary. A DAO is an emerging form of legal structure, that has no central governing body, and whose members share a common goal to act in the best interest of the entity. Pet2DAO is a DAO technology company, integrating the strong governance of traditional corporations with the innovative DAO architecture. The Company will look to engage stakeholders, to build value through the DAO, while maintaining the rigor of traditional corporations, including governance, compliance, and accountability through a team of veterans in public companies with innovators in AI, blockchain and Web3. Pet2DAO will be looking to develop products for the animal health space. The Company will initially issue utility tokens and non-fungible tokens ("*NFT*" and cumulatively "*Tokens*") of Pet2DAO, called PDAO, to its employees, shareholders and key opinion leaders ("*KOLs*') and use the Tokens to propose and vote on various human and animal health related programs. In the future, the Company will evaluate and plans to register these tokens with the SEC to make such Tokens freely tradable.

**Corporate History**

The Company was formed in the State of New York in 1988 as OXiGENE, Inc., was reincorporated in the State of Delaware in 1992, and changed its name to Mateon Therapeutics, Inc. in 2016, and Oncotelic Therapeutics, Inc. in November 2020.

The Company completed a reverse merger with Oncotelic Inc., a Delaware corporation, in April 2019, a merger with PointR Data, Inc. ("*PointR*"), a Delaware corporation, in November 2019 and formed a subsidiary EdgePoint AI, Inc. ("*Edgepoint"*), a Delaware Corporation, for which there are non-controlling interests in February 2020. The Company conducts business activities through Oncotelic, its wholly-owned Oncotelic, Inc., PointR, and Pet2DAO Inc., a Delaware corporation as well as EdgePoint.

**Summary of Risk Factors**

This Offering, which provides for the registration of Shares by Mast Hill as the Selling Stockholders and the subsequent public resale of such shares, involves substantial risk. Our ability to execute our business strategy is also subject to certain risks. The risks described under the heading "Risk Factors" included elsewhere in this prospectus may cause us not to realize the full benefits of our business plan and strategy or may cause us to be unable to successfully execute all or part of our strategy. Some of the most significant challenges and risks are:

● Our principal asset is our minority interest in GMP Bio in connection with JV, which may render it more difficult for investors to assess the underlying financial performance and value of our company.

● We may encounter difficulties in expanding our operations successfully, if and when we evolve from a company that is primarily involved in clinical development to a company that is also involved in commercialization.

● We will need substantial additional funding to continue our operations, which could result in dilution to our stockholders.

● If physicians and patients do not accept our future products or if the market for indications for which any product candidate is approved is smaller than expected, we may be unable to generate significant revenue, if any.

● The Equity Purchase Agreement with Mast Hill may cause material dilution to our existing stockholders

● Our stock price may decline because Mast Hill will pay less than the then-prevailing market price of our common stock.

● An investment in our shares is highly speculative.

● We may not have access to the full $25,000,000 amount of the Equity Purchase Agreement.

Before you invest in our common stock, you should carefully consider all the information in this prospectus, including matters set forth under the heading "Risk Factors."

**Where You Can Find Us**

Our principal executive office and mailing address and phone number are 29397 Agoura Road, Suite 107, Agoura Hills, CA 91301, (650) 635-7000.

**Our Filing Status as a "Smaller Reporting Company"**

We are a "smaller reporting company" as defined by SEC rules, meaning that we are not an investment company, an asset-backed issuer, or a majority-owned subsidiary of a parent company that is not a smaller reporting company and have a public float of less than $250 million, or annual revenues of less than $100 million and no public float. As a smaller reporting company, we are permitted to provide scaled disclosures in our SEC filings, including simplified executive compensation disclosures, exemption from the auditor attestation requirement of Section 404(b) of the Sarbanes-Oxley Act, and inclusion of only two years of audited financial statements in our annual reports rather than three years. These decreased disclosures may make it harder for investors to analyze our results of operations and financial prospects..

For more details regarding this exemption, see "Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies and Significant Judgments and Estimates."

**SUMMARY OF FINANCIAL INFORMATION**

*The following summary consolidated balance sheet for the nine month period as of September 30, 2025 has been derived from our unaudited consolidated financial statements and notes included elsewhere in this prospectus, and the following summary consolidated balance sheet as of December 31, 2024 and December 31, 2023 have been derived from our audited consolidated financial statements and notes included elsewhere in this prospectus. The following summary consolidated statements of operations data for the fiscal year ended December 31, 2024 and December 31, 2023 have been derived from our audited consolidated financial statements and notes included elsewhere in this prospectus. The summary consolidated statements of operations data for the nine months ended September 30, 2025 and 2024 have been derived from our unaudited interim consolidated financial statements and notes that are included elsewhere in this prospectus. The historical financial data presented below is not necessarily indicative of our financial results in future periods, and the results for the full fiscal year ended December 31, 2024 and nine months ended September 30, 2025 is not necessarily indicative of our operating results to be expected for the full fiscal year ending December 31, 2025 or any other period. You should read the summary consolidated financial data in conjunction with those financial statements and the accompanying notes and "Management's Discussion and Analysis of Financial Condition and Results of Operations." Our consolidated financial statements are prepared and presented in accordance with United States generally accepted accounting principles, or U.S. GAAP. Our consolidated financial statements have been prepared on a basis consistent with our audited financial statements as of and for the year ended December 31, 2024 and December 31, 2023 and unaudited financial statements as of or for the nine months ended September 30, 2025 and 2024, and include all adjustments, consisting of normal and recurring adjustments that we consider necessary for a fair presentation of the financial position and results of operations as of and for such periods.*

**ONCOTELIC THERAPEUTICS, INC. AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS**

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| | | | |
|:---|:---|:---|:---|
|  | **September 30,**<br>**2025** | **December 31,**<br>**2024** | **December 31,**<br>**2023** |
| **ASSETS** |  |  |  |
| Current assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $409000 | $86128 | $170405 |
| &nbsp;&nbsp;&nbsp;Restricted cash | 20000 | 20000 | 20000 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 3976 | 18976 | 18976 |
| &nbsp;&nbsp;&nbsp;Prepaid & other current assets | 1179972 | 9107 | 62356 |
| Total current assets | 1612948 | 134211 | 271737 |
| In process R&D | 1101760 | 1101760 | 1101760 |
| Goodwill, net | 2788230 | 2788230 | 5988230 |
| Investment in GMP Bio at fair value | 22653225 | 22653225 | 22653225 |
| Total assets | $28156163 | $26677426 | $30014952 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |  |
| Current liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | $2565877 | $2437167 | $2437321 |
| &nbsp;&nbsp;&nbsp;Accounts payable - related party | 347598 | 346057 | 344099 |
| &nbsp;&nbsp;&nbsp;Contingent Consideration | 2625000 | 2625000 | 2625000 |
| &nbsp;&nbsp;&nbsp;Derivative liability on notes | 670844 | 703616 | 423214 |
| &nbsp;&nbsp;&nbsp;Convertible and short-term debt, net of costs | 10328100 | 9790866 | 8066957 |
| &nbsp;&nbsp;&nbsp;Convertible debt and short-term debt - related party, net of costs | 3542244 | 3297208 | 2608356 |
| Total current liabilities | 20079663 | 19199914 | 16504947 |
| Convertible long-term debt, net of costs | - | - | 1898468 |
| Total Liabilities | 20079663 | 19199914 | 18403415 |
| Commitments and contingencies |  |  |  |
| Stockholders' equity: |  |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, $.01 par value; 750,000,000 shares authorized; 439,446,318 September 30, 2025; Common stock, $.01 par value; 750,000,000 shares authorized; 407,289,618 and 399,184,128 issued and outstanding as of December 31, 2024 and 2023, respectively. | 4394463 | 4072899 | 3991839 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 43765008 | 42219400 | 41655026 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (39108893) | (38040668) | (33516736) |
| Total Oncotelic Therapeutics, Inc. stockholders' equity | 9050578 | 8251631 | 12130129 |
| Non-controlling interests | (974078) | (774119) | (518592) |
| Total stockholders' equity | 8076500 | 7477512 | 11611537 |
| Total liabilities and stockholders' equity | $28156163 | $26677426 | $30014952 |

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**ONCOTELIC THERAPEUTICS, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Nine Months Ended** | **For the Nine Months Ended** | **For the Twelve Months Ended** | **For the Twelve Months Ended** |
|  | **September 30,** | **September 30,** | **December 31,** | **December 31,** |
|  | **2025** | **2024** | **2024** | **2023** |
| Service Revenue | $- | $- | $- | $70000 |
| Total Revenue |  | 0 |  | 70000 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Research and development | 1020 | 1212 |  | 61143 |
| &nbsp;&nbsp;&nbsp;General and administrative | 657019 | 343347 | 376013 | 573726 |
| &nbsp;&nbsp;&nbsp;Goodwill impairment (Note 2 and 3) | - | 3200000 | 3200000 | 6083146 |
| Total operating expenses | 658039 | 3544559 | 3576013- | 6718015 |
| Loss from operations | (658039) | (3544559) | (3576013) | (6648015) |
| Other income (expense): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense, net | (642917) | (655946) | (857723) | (1044786) |
| &nbsp;&nbsp;&nbsp;Reimbursement for expenses - related party |  | 22937 | 22937 | 72246 |
| &nbsp;&nbsp;&nbsp;Change in fair value of investment in GMP Bio |  |  |  | 12706 |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative on debt | 32772 | 140828 | (280402) | (225074) |
| &nbsp;&nbsp;&nbsp;Loss on debt conversion | - | (88258) | (88258) | (373142) |
| Total other expense | (610145) | (580439) | (1203446) | (1558050) |
| Net loss before non-controlling interests | (1268184) | (4124998) | (4779459) | (8206065) |
| Net loss attributable to non-controlling interests | (199959) | (202000) | (255527) | (302972) |
| Net loss attributable to Oncotelic Therapeutics, Inc. | $(1068225) | $(3922998) | (4523932) | (7903093) |
| Basic net loss per share attributable to common stock | $(0.00) | $(0.01) | (0.01) | (0.02) |
| Basic weighted average common stock outstanding | 414315703 | 403428494 | 404396473 | 384075369 |

---

**Special Note Regarding Forward-Looking Statements**

This prospectus contains certain statements that are, or may be deemed to be, "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act").

Any statements contained in or incorporated by reference into this prospectus, that are not statements of historical fact are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "potential," "continue," "assumption" or the negative of these terms or other comparable terminology.

Forward-looking statements reflect current views about future events and are based on our currently available financial, economic and competitive data and on current business plans. Forward-looking statements are not guarantees of future performance and our actual results may differ significantly from the results discussed or implied in the forward-looking statements. Factors that might cause such differences include, but are not limited to, the factors included in "Risk Factors," in this prospectus and our annual report on Form 10-K for the fiscal year ended December 31, 2024 and the other registration statements and reports that we file with the SEC.

The forward-looking statements contained in this document are based on our current expectations and beliefs concerning future developments and their potential effects on us. We undertake no obligation to update or revise any forward- looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

You should consider the inherent limitations on, and risks associated with, forward-looking statements and not unduly rely on the accuracy of predictions contained in such forward-looking statements.

**RISK FACTORS**

The shares of our common stock being offered for resale by the Selling Shareholders are highly speculative in nature, involve a high degree of risk and should be purchased only by persons who can afford to lose their entire amount invested in the common stock. Accordingly, prospective investors should carefully consider, along with other matters referred to herein, the following risk factors in evaluating our business before purchasing any shares of common stocks. If any of the following risks actually occurs, our business, financial condition or operating results could be materially adversely affected. In such case, you may lose all or part of your investment. In addition to the risk factors described below, and some of which are part of our 2024 Annual Report on Form 10-K filed with the SEC on April 15, 2025, you should carefully consider the risks and the other information in this prospectus before investing in our common stock.

**Risks Related to Our Business**

***Our principal asset is our minority investment in a JV, which makes an evaluation of our financial condition more difficult for investors.***

Our principal asset is our minority interest in GMP Bio in connection with the JV. We account for our interest on the fair value method and our financial statements reflect only the fair value of that investment. Our financial statements do not include a balance sheet or statement of operations for the JV. We will adjust the value of our holdings in the JV from time to time when sufficient indications of a change in value exist, but the timing of those changes may depend on circumstances that are outside of our control. Accordingly, investors may find it more difficult to assess the underlying value of our company.

***If we are unable to obtain additional funding, we may be forced to cease operations.***

We have experienced net losses every year since inception. The Company, as of December 31, 2024, had an accumulated deficit of approximately $38 million, including a net loss of approximately $4.8 million in 2024, which included a non-cash goodwill impairment loss of $3.2 million. We have no source of product revenue and do not expect to receive any product revenue in the near future, except if we generate product revenues from Artemisinin in countries around the globe other than India and which at the current time is not anticipated. We may generate revenues from services rendered in the future, but we cannot expect that to be a regular and of recurring nature. If we remain in business, we expect to incur additional operating losses over the next several years, principally as a result of our plans to continue clinical trials for our investigational drugs. At December 31, 2024, we had approximately $0.1 million in cash and current liabilities of approximately $19.2 million. Based on our planned operations, we expect our cash to only support our operations for a short period of time. Therefore, we will need to secure near-term funding, or we would be forced to curtail or terminate operations. Because we do not currently have a guaranteed source of capital that will sustain operations for at least the next twelve months, Management has determined that there is substantial doubt about our ability to continue as a going concern.

The principal source of our working capital to date has been the proceeds from the sale of equity and debt, a substantial portion of which has been provided by officers and certain insiders. If we are unable to access additional funds in the near term, whether through the sale of additional equity, debt or another means, we may not be able to continue in business. We also may not be able to continue the development of our investigational drugs. Any additional equity or debt financing, if available to us, may not be available on favorable terms and would most likely be dilutive to stockholders. Any debt financing, if available, may involve restrictive covenants and also be dilutive to current stockholders. If we obtain funds through collaborative or licensing arrangements, we may be required to relinquish rights to some of our technologies or product candidates on terms that are not favorable to us. Our ability to access capital when needed is not assured.

In their audit report with regard to our financial statements as of December 31, 2024, we as well as our independent registered public accountants have expressed an opinion that substantial doubt exists as to whether we can continue as a going concern. Because we have limited cash resources, we believe that it will be necessary for us to either raise additional capital in the near term or to enter into a license or other agreement with a larger pharmaceutical company. If we do not succeed in doing so, we may be required to suspend or cease our business, which would likely materially harm the value of our common stock.

***Due in part to our limited financial resources, we may fail to select or capitalize on the most scientifically, clinically or commercially promising or profitable indications or therapeutic areas for our product candidates, and we may be unable to pursue and complete the clinical trials that we would like to pursue and complete.***

We have limited financial and technical resources to determine the indications on which we should focus the development efforts for our product candidates. Due to our limited available financial resources, we have curtailed clinical development programs and activities that might otherwise have led to more rapid progress of our product candidates through the regulatory and development processes. We currently have insufficient financial resources to complete any additional drug development work.

If we are able to raise funds and continue developing investigational drugs for cancer, we may make incorrect determinations with regard to the indications and clinical trials on which to focus the available resources that we do have. Furthermore, we cannot assure you that we will be able to retain adequate staffing levels to run our operations and/or to accomplish all of the objectives that we otherwise would seek to accomplish. The decisions to allocate our research, management and financial resources toward particular indications or therapeutic areas for our product candidates may not lead to the development of viable commercial products and may divert resources from better opportunities. Similarly, our decisions to delay or terminate drug development programs may also cause us to miss valuable opportunities. In addition, from time to time, we may in-license or otherwise acquire product candidates to supplement our internal development activities. Those activities may use resources that otherwise would have been devoted to our internal programs, and with research and development programs there is no way to assure that the outcome of any trials or other activities will be positive, whether the program was internally generated or in-licensed.

***We may encounter difficulties in expanding our operations successfully if and when we evolve from a company that is primarily involved in clinical development to a company that is also involved in commercialization.***

As we advance our product candidates through later stages of clinical trials, we will need to expand our development, regulatory, manufacturing, marketing and sales capabilities or contract with third parties to provide these capabilities for us. As our operations expand, we expect that we will need to manage additional relationships with such third parties, as well as additional collaborators, distributors, marketers and suppliers.

Maintaining third party relationships for these purposes will impose significant added responsibilities on members of our management and other personnel. We must be able to manage our development efforts effectively, manage our participation in the clinical trials in which our product candidates are involved effectively, and improve our managerial, development, operational and finance systems, all of which may impose a strain on our administrative and operational infrastructure.

If, following any approval of our product candidates, we enter into arrangements with third parties to perform sales, marketing or distribution services, any product revenues that we receive, or the profitability of these product revenues to us, are likely to be lower than if we were to market and sell any products that we develop ourselves. In addition, we may not be successful in entering into arrangements with third parties to sell and market our products or in doing so on terms that are favorable to us. We likely will have little control over such third parties, and any of them may fail to devote the necessary resources and attention to sell and market our products effectively. If we do not establish sales and marketing capabilities successfully, either on our own or in collaboration with third parties, we will not be successful in commercializing our products.

If we were to submit an NDA for our drug candidates in the United States or a marketing application in the EU, we would need to undertake commercial scale manufacturing activities at significant expense to us in order to proceed with the application for approval for commercialization. We or our external vendors may encounter technical difficulties that preclude us from successfully manufacturing the required registration and validation batches of active pharmaceutical ingredient, or API, and/or drug product and we may be unable to recover any financial losses associated with the manufacturing activities. Further, our research or product development efforts may not be successfully completed, any compounds currently under development by us may not be successfully developed into drugs, any potential products may not receive regulatory approval on a timely basis, if at all, and competitors may develop and bring to market products or technologies that render our potential products obsolete. If any of these problems occur, our business would be materially and adversely affected.

***We may not be able to partner with other pharmaceutical companies or even form any types of alliances with third parties.***

As we plan to advance our product candidates through later stages of clinical trials but with lack of adequate capital resources, we will need to form alliances or enter into partnerships with other pharmaceutical companies or even other third parties. We cannot assure you that we would be able to do so at terms beneficial to the Company or at all.

***We may not be able to successfully set up an IPO with third parties.***

The JV is planning to secure additional financing for its operations through an initial public offering in Hong Kong. While the JV has engaged an investment banker and its taking active steps to progress to an initial public offering, there are no firm commitments to underwrite any public offering at this time. We cannot assure you that any public offering will occur at all, will occur within a specific timeframe, will raise sufficient funds to meet the JVs needs, or will be on terms that will be beneficial to the Company.

***We may not be able to successfully develop the product portfolio through our JV.***

As we plan to advance the product candidates being established through our JV, through later stages of development, manufacturing of the products for clinical trials and ultimately commercial manufacturing, we may need to form alliances or enter into partnerships with other pharmaceutical companies or even other third parties to work with us in the JVs endeavors to achieve success for the Product. That would ensure success for the JV and create shareholder value for our Company. We cannot assure you that the JV would be able to do so and the Company get's the benefits of that at all.

***We have no manufacturing capacity and have relied on, and expect to continue to rely on, third-party manufacturers to produce our product candidates.***

Our JV leases a manufacturing facility in San Diego which it plans to use for development of clinical quantities of our product candidates. However, we do not own or operate manufacturing facilities for the production of clinical or commercial quantities of our product candidates or any of the compounds that we are testing in our preclinical programs, and we lack the resources and the capabilities to do so. As a result, we currently rely, and we expect to rely for the foreseeable future, on third-party manufacturers to supply our product candidates. Reliance on third-party manufacturers entails risks to which we would not be subject if we manufactured our product candidates or products ourselves, including:

● reliance on third-parties for manufacturing process development, regulatory compliance and quality assurance;

● limitations on supply availability resulting from capacity and scheduling constraints of third-parties;

● the possible breach of manufacturing agreements by third-parties because of factors beyond our control; and

● the possible termination or non-renewal of the manufacturing agreements by the third-party, at a time that is costly or inconvenient to us.

If we do not maintain our developed important manufacturing relationships, we may fail to find replacement manufacturers or develop our own manufacturing capabilities, which could delay or impair our ability to obtain regulatory approval for our products and substantially increase our costs or deplete profit margins, if any. If we do find replacement manufacturers, we may not be able to enter into agreements with them on terms and conditions favorable to us, and there could be a substantial delay before new facilities could be qualified and registered with the FDA, EMA and other foreign regulatory authorities.

The FDA, EMA and other foreign regulatory authorities require manufacturers to register manufacturing facilities. The FDA and corresponding foreign regulators also inspect these facilities to confirm compliance with current good manufacturing practices, or cGMPs. Contract manufacturers may face manufacturing or quality control problems causing drug substance production and shipment delays or a situation where the contractor may not be able to maintain compliance with the applicable cGMP requirements. Any failure to comply with cGMP requirements or other FDA, EMA and comparable foreign regulatory requirements could adversely affect our clinical research activities and our ability to develop our product candidates and market our products after approval.

Our current and anticipated future dependence upon others for the manufacture of our product candidates may adversely affect our ability to develop our product candidates, our ability to commercialize any products that receive regulatory approval and our potential future profit margins on these products.

***Our product candidates have not completed clinical trials, and may never demonstrate sufficient safety and efficacy in order to do so.***

Our product candidates are in the clinical stage of development. In order to achieve profitable operations, we alone or in collaboration with others, must successfully develop, manufacture, introduce and market our products. The time frame necessary to achieve market success for any individual product is long and uncertain. The products currently under development by us may require significant additional research and development and additional preclinical and clinical testing prior to application for commercial use. A number of companies in the biotechnology and pharmaceutical industries have suffered significant setbacks in clinical trials, even after showing promising results in early or later-stage studies or clinical trials. Although we have obtained some favorable results to date in preclinical studies and clinical trials of certain of our potential products, such results may not be indicative of results that will ultimately be obtained in or throughout such clinical trials, and clinical trials may not show any of our products to be safe or capable of producing a desired result. Additionally, we may encounter problems in our clinical trials that may cause us to delay, suspend or terminate those clinical trials.

Adverse events observed to date and associated with CA4P and OXi4503 have generally been found to be manageable for drugs treating the indications for which we are developing our product candidates. However, we will be required to continue to test and evaluate the safety of our product candidates in additional clinical trials, and to demonstrate their safety to the satisfaction of appropriate regulatory agencies, as a condition to receipt of any regulatory approvals. In clinical trials to date, transient hypertension believed to be associated with CA4P and OXi4503 has been effectively managed through pre-treatment with anti-hypertensive medication. We cannot assure you, however, that we will be able to make the necessary demonstrations of safety to allow us to receive regulatory approval for our product candidates in any indication.

***We only have a limited number of employees to manage and operate our business.***

We had a combined total of 40 full-time, part-time employees and consultants as of December 31, 2024; however, all the employees have been compensated through the JV since March 2022. We rely on external consultants or outsource nearly all our research, development, preclinical testing, and clinical trial activity, although we maintain managerial and quality control over our clinical trials. We expect to continue to rely on external service providers and to maintain a small number of executives and other employees. Our limited financial resources require us to manage and operate our business in a highly efficient manner. We cannot assure you that we will be able to retain adequate staffing levels to run our operations and/or to accomplish all of the objectives that we otherwise would seek to accomplish.

***We depend on our executive officers and principal consultants and the loss of their services could materially harm our business.***

We believe that our success depends, and will likely continue to depend, upon our ability to retain the services of our current executive officers, particularly our Chief Executive Officer, Chief Technology Officer, Chief Business Officer and Chief Financial Officer, our principal consultants and others. Our lack of financial resources increases the risk that we may not be able to retain their services. The loss of the services of any of these individuals could have a material adverse effect on our business. In addition to these key service providers, we have established relationships with universities, hospitals and research institutions, which have historically provided, and continue to provide, us with access to research laboratories, clinical trials, facilities and patients. Additionally, we believe that we may, at any time and from time to time, materially depend on the services of consultants and other unaffiliated third parties. We cannot assure you that consultants and other unaffiliated third parties will provide the level of service to us that we require in order to achieve our business objectives.

***Our industry is highly competitive, and our product candidates may become obsolete.***

We are engaged in a rapidly evolving field. Competition from other pharmaceutical companies, biotechnology companies and research and academic institutions is intense and likely to increase. Many of those companies and institutions have substantially greater financial, technical and human resources than we do. Many of those companies and institutions also have substantially greater experience in developing products, conducting clinical trials, obtaining regulatory approval and in manufacturing and marketing pharmaceutical products. Our competitors may succeed in obtaining regulatory approval for their products more rapidly than we do. Competitors have developed or are in the process of developing technologies that are, or in the future may be, the basis for competitive products. Some of these competitive products may have an entirely different approach or means of accomplishing the desired therapeutic effect than products being developed by us. Our competitors may succeed in developing products that are more effective and/or cost competitive than those we are developing, or that would render our product candidates less competitive or even obsolete. In addition, one or more of our competitors may achieve product commercialization or patent protection earlier than we do, which could materially adversely affect us.

***If clinical trials or regulatory approval processes for our product candidates are prolonged, delayed or suspended, we may be unable to out-license or commercialize our product candidates on a timely basis, which would require us to incur additional costs and delay or prevent our receipt of any proceeds from potential license agreements or product sales.***

We cannot predict whether we will encounter problems with any of our completed, ongoing or planned clinical trials that will cause us or any regulatory authority to delay or suspend those clinical trials or delay or invalidate the analysis of data derived from them. A number of events, including any of the following, could delay the completion of our other ongoing and planned clinical trials and negatively impact our ability to obtain regulatory approval for, and to market and sell, a particular product candidate:

● conditions imposed on us by the FDA, EMA or another foreign regulatory authority regarding the scope or design of our clinical trials;

● delays in obtaining, or our inability to obtain, required approvals from institutional review boards or other reviewing entities at clinical sites selected for participation in our clinical trials;

● insufficient supply of our product candidates or other materials necessary to conduct and complete our clinical trials;

● slow enrollment and retention rate of subjects in clinical trials;

● any compliance audits and pre-approval inspections by the FDA, EMA or other regulatory authorities;

● negative or inconclusive results from clinical trials, or results that are inconsistent with earlier results;

● serious and unexpected drug-related side effects; and

● failure of our third-party contractors to comply with regulatory requirements or otherwise meet their contractual obligations to us.

Commercialization or licensure of our product candidates may be delayed or prevented by the imposition of additional conditions on our clinical trials by the FDA, EMA or another foreign regulatory authority or the requirement of additional supportive clinical trials by the FDA, EMA or another foreign regulatory authority. In addition, clinical trials require sufficient patient enrollment, which is a function of many factors, including the size of the patient population, the nature of the trial protocol, the proximity of patients to clinical sites, the availability of effective treatments for the relevant disease, the conduct of other clinical trials that compete for the same patients as our clinical trials, and the eligibility criteria for our clinical trials. Our failure to enroll patients in our clinical trials could delay the completion of the clinical trial beyond our expectations, or it could prevent us from being able to complete the clinical trial. In addition, the FDA and EMA could require us to conduct clinical trials with a larger number of subjects than we have projected for any of our product candidates. We may not be able to enroll a sufficient number of patients in a timely or cost-effective manner. Furthermore, enrolled patients may drop out of our clinical trials, which could impair the validity or statistical significance of the clinical trials.

We do not know whether our clinical trials will begin as planned, will need to be restructured, or will be completed on schedule, if at all. Delays in our clinical trials will result in increased development costs for our product candidates, and our financial resources may be insufficient to fund any incremental costs. In addition, if our clinical trials are delayed, our competitors may be able to bring products to market before we do and the commercial viability of our product candidates could be limited.

***If physicians and patients do not accept our future products or if the market for indications for which any product candidate is approved is smaller than expected, we may be unable to generate significant revenue, if any.***

Even if any of our product candidates obtain regulatory approval, they may not gain market acceptance among physicians, patients, and third-party payers. Physicians may decide not to prescribe our drugs for a variety of reasons including:

● timing of market introduction of competitive products;

● demonstration of clinical safety and efficacy compared to other products;

● cost-effectiveness;

● limited or no coverage by third-party payers;

● convenience and ease of administration;

● prevalence and severity of adverse side effects;

● restrictions in the label of the drug;

● other potential advantages of alternative treatment methods; and

● ineffective marketing and distribution support of our products.

If any of our product candidates is approved, but fails to achieve market acceptance, we may not be able to generate significant revenue and our business would suffer.

***The uncertainty associated with pharmaceutical reimbursement and related matters may adversely affect our business.***

Market acceptance and sales of any one or more of our product candidates that we develop will depend on reimbursement policies and may be affected by future healthcare reform measures in the United States and in foreign jurisdictions. Government authorities and third-party payers, such as private health insurers and health maintenance organizations, decide which drugs they will cover and establish payment levels. We cannot be certain that reimbursement will be available for any product candidates that we develop. Also, we cannot be certain that reimbursement policies will not reduce the demand for, or the price paid for, our products. If reimbursement is not available or is available on a limited basis, we may not be able to successfully commercialize any product candidates that we develop.

In the United States, the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, also called the Medicare Modernization Act, or MMA, changed the way Medicare covers and pays for pharmaceutical products. The legislation established Medicare Part D, which expanded Medicare coverage for outpatient prescription drug purchases by the elderly but provided authority for limiting the number of drugs that will be covered in any therapeutic class. The MMA also introduced a new reimbursement methodology based on average sales prices for physician-administered drugs.

The United States and several foreign jurisdictions are considering, or have already enacted, a number of legislative and regulatory proposals to change the healthcare system in ways that could affect our ability to sell our products profitably. Among policy makers and payers in the United States and elsewhere, there is significant interest in promoting changes in healthcare systems with the stated goals of containing healthcare costs, improving quality and/or expanding access to healthcare. In the United States, the pharmaceutical industry has been a particular focus of these efforts and has been significantly affected by major legislative initiatives. We expect to experience pricing pressures in connection with the sale of any products that we develop due to the trend toward managed healthcare, the increasing influence of health maintenance organizations and additional legislative proposals.

In March 2010, the Affordable Care Act, as amended by the Health Care and Education Affordability Reconciliation Act, or collectively, ACA, became law in the U.S. The goal of ACA is to reduce the cost of health care and substantially change the way health care is financed by both government and private insurers. While we cannot predict what impact on federal reimbursement policies this legislation will have in general or on our business specifically, the ACA may result in downward pressure on pharmaceutical reimbursement, which could negatively affect market acceptance of, and the price we may charge for, any products we develop that receive regulatory approval.

More recently, the current U.S. presidential administration has made statements suggesting plans to seek repeal of all or portions of the ACA. There is uncertainty regarding the impact that the President's administration may have on matters currently governed by the ACA, if any, and any regulatory or legislative changes will likely take time to unfold. These changes could have an impact on coverage and reimbursement for healthcare items and services covered by plans that were authorized by the ACA. However, we cannot predict the ultimate content, timing or effect of any healthcare reform legislation or the impact of potential legislation on us. Any reduction in reimbursement from Medicare or other government programs may result in a similar reduction in payments from private payors. The implementation of cost containment measures or other healthcare reforms may prevent us from being able to generate revenue, attain profitability, or commercialize our products.

***Our business and operations could suffer in the event of system failures.***

Despite the implementation of security measures, our internal computer systems and those of our third-party CROs and other contractors and consultants are vulnerable to damage from computer viruses, unauthorized access, natural disasters, terrorism, war and telecommunication and electrical failures. Furthermore, we have little or no control over the security measures and computer systems of our third-party CROs and other contractors and consultants. While we have not experienced any material system failure, accident, or security breach to date, if such an event were to occur and cause interruptions in our operations, it could result in a material disruption of our programs. For example, the loss of clinical trial data for our product candidates could result in delays in our marketing approval efforts and significantly increase our costs to recover or reproduce the data. To the extent that any disruption or security breach results in a loss of or damage to our data or applications or other data or applications relating to our technology or product candidates, or inappropriate disclosure of confidential or proprietary information, we could incur liabilities and the further development of our product candidates could be delayed.

**Regulatory and Legal Risks**

***If we are unable to obtain required regulatory approvals, we will be unable to market and sell our product candidates.***

Our product candidates are subject to extensive governmental regulations relating to development, clinical trials, manufacturing, oversight of clinical investigators, recordkeeping and commercialization. Rigorous preclinical testing and clinical trials and an extensive regulatory review and approval process are required to be successfully completed in the United States, in the European Union and in many other foreign jurisdictions before a new drug can be sold. Satisfaction of these and other regulatory requirements is costly, time consuming, uncertain, and subject to unanticipated delays. The time required to obtain approval by the FDA or the European Medicines Agency, or EMA, is unpredictable and often takes many years following the commencement of clinical trials.

In connection with the clinical development of our product candidates, we face risks that:

● our product candidates may not prove to be safe and efficacious;

● patients may die or suffer serious adverse effects for reasons that may or may not be related to the product candidate being tested;

● we fail to maintain adequate records of observations and data from our clinical trials, to establish and maintain sufficient procedures to oversee, collect data from, and manage clinical trials, or to monitor clinical trial sites and investigators to the satisfaction of the FDA, EMA or other regulatory agencies;

● we may not have sufficient financial resources to complete the clinical trials that would be necessary to obtain regulatory approvals;

● the results of later-phase clinical trials may not confirm the results of earlier clinical trials; and

● the results from clinical trials may not meet the level of statistical significance or clinical benefit-to-risk ratio required by the FDA, EMA or other regulatory agencies for marketing approval.

Only a small percentage of product candidates for which clinical trials are initiated are the subject of NDAs and even fewer receive approval for commercialization. Furthermore, even if we do receive regulatory approval to market a product candidate, any such approval may be subject to limitations such as those on the indicated uses for which we may market the product.

***If we or the third parties on which we rely for the conduct of our clinical trials and results do not perform our clinical trial activities in accordance with good clinical practices and related regulatory requirements, we may not be able to obtain regulatory approval for or commercialize our product candidates.***

We currently use independent clinical investigators in all of our clinical trials and, in many cases, also utilize contract research organizations, or CROs, and other third-party service providers to conduct and/or oversee the clinical trials of our product candidates and expect to continue to do so for the foreseeable future. We rely heavily on these parties for successful execution of our clinical trials. Nonetheless, we are responsible for confirming that each of our clinical trials is conducted in accordance with the FDA's requirements and our general investigational plan and protocol. Currently, we have clinical trial activities involving CA4P and OXi4503 being conducted by clinical investigators who are independent of us, but with whom we have agreements for them to provide the results of their clinical trials to us. In order for us to rely on data from these ongoing clinical trials in support of a New Drug Application, or NDA, for approval of any of our product candidates by the FDA or similar types of marketing applications that are required by other regulatory authorities, the independent investigators are required to comply with applicable good clinical practice requirements.

The FDA and corresponding foreign regulatory authorities require us and our clinical investigators to comply with regulations and standards, commonly referred to as good clinical practices, or GCPs, for conducting and recording and reporting the results of clinical trials to assure that data and reported results are credible and accurate and that the trial participants are adequately protected. Our reliance on third parties that we do not control does not relieve us of these responsibilities and requirements. Third parties may not complete activities on schedule or may not conduct our clinical trials in accordance with regulatory requirements or the respective trial plans and protocols. The failure of these third parties to carry out their obligations could delay or prevent the development, approval and commercialization of our product candidates or result in enforcement action against us.

We have taken and continue to take steps to strengthen our procedures and practices, but we cannot assure you that the FDA will be satisfied with our procedures or that the FDA will not issue warning letters or take other enforcement action against us in the future. The steps we take to strengthen our procedures and conduct future clinical trials necessary for approval will be time-consuming and expensive.

***The use of our products may result in product liability exposure, and it is uncertain whether our insurance coverage will be sufficient to cover all claims.***

The use of our product candidates in clinical trials may expose us to liability claims in the event such product candidates cause death, injury or disease, or result in adverse effects. We may be exposed to liability claims even if our product did not cause death, injury or diseases, but is merely presumed or alleged to have caused any of these. If our product candidates are ever commercially approved, the commercial use of these products may also expose us to similar liability claims. Any of these claims could be made by health care institutions, contract laboratories, patients or others using such products. Although we have obtained liability insurance coverage for our ongoing clinical trials, this coverage may not be in amounts sufficient to protect us from any product liability claims or product recalls which could have a material adverse effect on our financial condition and prospects. Further, adverse product and similar liability claims could negatively impact our ability to obtain or maintain regulatory approvals for our technology and product candidates under development.

***We have been granted orphan drug status for certain of our product candidates and may seek orphan drug status for additional indications for those product candidates or for additional product candidates. We may be unsuccessful in maintaining orphan drug exclusivity for our product candidates and may be unsuccessful in our efforts to seek orphan drug status and orphan drug exclusivity.***

Regulatory authorities in some jurisdictions, including the United States and the European Union, may designate drugs for relatively small patient populations as orphan drugs. Under the Orphan Drug Act, the FDA may designate a product as an orphan drug if it is a drug intended to treat a rare disease or condition, which is generally defined as a disease with a patient population of fewer than 200,000 individuals in the United States. Our lead product candidate, OXi4503, has been awarded orphan drug status by the FDA and the European Commission for the treatment of acute myelogenous leukemia. Our other product candidate, CA4P, has been awarded orphan drug status by the FDA for the treatment of anaplastic, medullary, Stage IV papillary and Stage IV follicular thyroid cancers, ovarian cancer, neuroendocrine tumors and glioma. CA4P has also been awarded orphan drug status by the European Commission in the European Union for the treatment of anaplastic thyroid cancer, ovarian cancer and neuroendocrine tumors.

Generally, if a product with an orphan drug designation subsequently receives the first marketing approval for the indication for which it has such designation, the product is entitled to a period of marketing exclusivity, which precludes the EMA or the FDA from approving another marketing application for the same drug for the same indication during the period of exclusivity. The applicable period is seven years in the United States and ten years in the European Union. The European exclusivity period can be reduced to six years if a drug no longer meets the criteria for orphan drug designation or if the drug is sufficiently profitable so that market exclusivity is no longer justified. Orphan drug exclusivity may be lost if the FDA or the EMA determines that the request for designation was materially defective, if the manufacturer is unable to assure sufficient quantity of the drug to meet the needs of patients with the rare disease or condition.

Even if we obtain orphan drug exclusivity for a product candidate or additional product candidates, that exclusivity may not effectively protect the product candidate from competition because different drugs can be approved for the same condition. Even after an orphan drug is approved, the FDA can subsequently approve a different drug for the same condition if the FDA concludes that the later drug is clinically superior in that it is shown to be safer, more effective or makes a major contribution to patient care.

***Our product candidates will remain subject to ongoing regulatory review even if they receive marketing approval, and if we fail to comply with continuing regulations, we could lose these approvals and the sale of any approved commercial products could be suspended.***

Even if we receive regulatory approval to market a particular product candidate, the manufacturing, labeling, packaging, adverse event reporting, storage, advertising, promotion, and record keeping related to the product will remain subject to extensive regulatory requirements. If we fail to comply with the regulatory requirements of the FDA, EMA and other applicable domestic and foreign regulatory authorities or previously unknown problems with any approved product, manufacturer, or manufacturing process are discovered, we could be subject to administrative or judicially imposed sanctions, including:

● restrictions on the products, manufacturers, or manufacturing processes;

● warning letters;

● civil or criminal penalties;

● fines;

● injunctions;

● product seizures or detentions;

● pressure to initiate voluntary product recalls;

● suspension or withdrawal of regulatory approvals; and

● refusal to approve pending applications for marketing approval of new products or supplements to approved applications.

***Our employees, principal investigators, CROs and consultants may engage in misconduct or other improper activities, including non-compliance with regulatory standards and requirements and insider trading.***

We are exposed to the risk that our employees, principal investigators, CROs and consultants may engage in fraudulent conduct or other illegal activity. Misconduct by these parties could include intentional, reckless and/or negligent conduct or disclosure of unauthorized activities to us that violate the regulations of the FDA and other regulatory authorities, including those laws requiring the reporting of true, complete and accurate information to such authorities; healthcare fraud and abuse laws and regulations in the United States and abroad; or laws that require the reporting of financial information or data accurately. In particular, sales, marketing and business arrangements in the healthcare industry are subject to extensive laws and regulations intended to prevent fraud, misconduct, kickbacks, self-dealing and other abusive practices. Activities subject to these laws also involve the improper use of information obtained in the course of clinical trials or creating fraudulent data in our preclinical studies or clinical trials, which could result in regulatory sanctions and cause serious harm to our reputation.

We have a code of conduct applicable to all of our employees, but it is not always possible to identify and deter misconduct by employees and other third parties, and the precautions we take to detect and prevent this activity may not be effective in controlling unknown or unmanaged risks or losses or in protecting us from governmental investigations or other actions or lawsuits stemming from a failure to comply with these laws or regulations. Additionally, we are subject to the risk that a person could allege such fraud or other misconduct, even if none occurred. If any such actions are instituted against us, and we are not successful in defending ourselves or asserting our rights, those actions could have a significant impact on our business, including the imposition of civil, criminal and administrative penalties, damages, monetary fines, possible exclusion from participation in Medicare, Medicaid and other federal healthcare programs, contractual damages, reputational harm, diminished profits and future earnings, and curtailment of our operations, any of which could adversely affect our ability to operate our business and our results of operations.

**Intellectual Property Risks**

***We depend extensively on the patents and proprietary technology we license from others, and we must maintain these licenses in order to preserve our business.***

We have licensed in rights to CA4P, OXi4503 and other programs from third parties. If our license agreements terminate or expire, we may lose the licensed rights to our product candidates, including CA4P and OXi4503, and we may not be able to continue to develop them or, if they are approved, we may not be able to market or commercialize them.

We depend on license agreements with third-parties for certain intellectual property rights relating to our product candidates, including patent rights. Currently, we have licensed in certain patent rights from Arizona State University, or ASU, and the Bristol-Myers Squibb Company for CA4P and OXi4503 and from Baylor University for other programs. In general, our license agreements require us to make payments and satisfy performance obligations in order to keep these agreements in effect and retain our rights under them. These payment obligations can include upfront fees, maintenance fees, milestones, royalties, patent prosecution expense, and other fees. These performance obligations typically include diligence obligations. If we fail to pay, be diligent or otherwise perform as required under our license agreements, we could lose the rights under the patents and other intellectual property rights covered by the agreements. While we are not currently aware of any dispute with any licensors under our material agreements with them, if disputes arise under any of our in-licenses, including our in-licenses from ASU, the Bristol-Myers Squibb Company and Baylor University, we could lose our rights under these agreements. Any such dispute may not be resolvable on favorable terms, or at all. Whether or not any disputes of this kind are favorably resolved, our management's time and attention and our other resources could be consumed by the need to attend to and seek to resolve these disputes and our business could be harmed by the emergence of such a dispute.

If we lose our rights under these agreements, we may not be able to conduct any further activities with the product candidate or program that the license covered. If this were to happen, we might not be able to develop our product candidates further, or following regulatory approval, if any, we might be prohibited from marketing or commercializing them. In particular, patents previously licensed to us, such as the patents we previously licensed from Angiogene, might after termination be used to stop us from conducting activities in the patents' respective fields.

***We depend on patents and proprietary technology in the course of our business, and we must protect those assets in order to preserve our business.***

Although we expect to seek patent protection for any compounds we discover and/or for any specific use we discover for new or previously known compounds, any or all of them may not be subject to effective patent protection. Further, the development of regimens for the administration of pharmaceuticals, which generally involve specifications for the frequency, timing and amount of dosages, has been, and we believe, may continue to be, important to our effort, although those processes, as such, may not be patentable. In addition, the issued patents may be declared invalid or our competitors may find ways to avoid the claims in the patents. Further, our lack of access to adequate capital may cause us to curtail payment of fees necessary to maintain patents that we otherwise would seek to maintain, and we may make incorrect decisions regarding which patents to keep and which to abandon.

Our success will depend, in part, on our ability to obtain and maintain patents, protect our trade secrets and operate without infringing on the proprietary rights of others. We are the exclusive licensee, sole assignee or co-assignee on a number of granted United States patents, pending United States patent applications, and granted patents and/or pending applications in several other major markets, including the European Union, Canada and Japan. The patent position of pharmaceutical and biotechnology firms like us is generally highly uncertain and involves complex legal and factual questions, resulting in both an apparent inconsistency regarding the breadth of claims allowed in United States patents and general uncertainty as to their legal interpretation and enforceability. Accordingly, patent applications assigned or exclusively licensed to us may not result in patents being issued, any issued patents assigned or exclusively licensed to us may not provide us with competitive protection or may be challenged by others, and the current or future granted patents of others may have an adverse effect on our ability to do business and achieve profitability. Moreover, because some of the basic research relating to one or more of our patent applications and/or patents were performed at various universities and/or funded by grants, one or more of these universities, employees of such universities and/or grantors could assert that they have certain rights in such research and any resulting products. Further, others may independently develop similar products, may duplicate our products, or may design around our patent rights. In addition, as a result of the assertion of rights by a third-party or otherwise, we may be required to obtain licenses to patents or other proprietary rights of others in or outside of the United States. Any licenses required under any such patents or proprietary rights may not be made available on terms acceptable to us, if at all. If we do not obtain such licenses, we could encounter delays in product market introductions while our attempts to design around such patents or could find that the development, manufacture or sale of products requiring such licenses is foreclosed. In addition, we could incur substantial costs in defending ourselves in suits brought against us or in connection with patents to which we hold licenses or in bringing suit to protect our own patents against infringement.

We require employees and the institutions that perform our preclinical and clinical trials to enter into confidentiality agreements with us. Those agreements provide that all confidential information developed or made known to a party to any such agreement during the course of the relationship with us be kept confidential and not be disclosed to third-parties, except in specific circumstances. Any such agreement may not provide meaningful protection for our trade secrets or other confidential information in the event of unauthorized use or disclosure of such information.

**Risks related to our Stock and Financing**

***Dilution of our shares will likely be adversely affected by sales of our common stock pursuant to our agreement with the Selling Stockholder.***

Sales of an aggregate of 309,717,647 shares of our common stock being registered herein on behalf of Mast One and the subsequent resale of those shares will have a material dilutive effect upon our shares and will likely have a depressive effect on the market price of our common stock.

***The price of our common stock is volatile, and is likely to continue to fluctuate due to reasons beyond our control; a limited public trading market may cause volatility in the price of our common stock.***

The market price of our common stock has been, and likely will continue to be, highly volatile. Factors, including our financial results or our competitors' financial results, clinical trial and research development announcements and government regulatory action affecting our potential products in both the United States and foreign countries, have had, and may continue to have, a significant effect on our results of operations and on the market price of our common stock. We cannot assure you that an investment in our common stock will not fluctuate significantly. One or more of these factors could significantly harm our business and cause a decline in the price of our common stock in the public market. Substantially all of the shares of our common stock issuable upon exercise of outstanding options and warrants have been registered or are likely to be registered for resale or are available for sale pursuant to Rule 144 under the Securities Act and may be sold from time to time. As of December 31, 2024, we had approximately 289.5 million shares of common stock underlying currently outstanding convertible debt, warrants and options. Sales of any of these shares on the market, as well as future sales of our common stock by existing stockholders, or the perception that sales may occur at any time, could adversely affect the market price of our common stock.

Our common stock is currently quoted on the OTCQB Market. The quotation of our common stock on the OTCQB Market does not assure that a meaningful, consistent and liquid trading market currently exists, and in recent years such market has experienced extreme price and volume fluctuations that have particularly affected the market prices of many smaller companies like us. Our common stock is subject to this volatility. Sales of substantial amounts of common stock, or the perception that such sales might occur, could adversely affect prevailing market prices of our common stock and our stock price may decline substantially in a short time and our stockholders could suffer losses or be unable to liquidate their holdings.

***The price of our common stock may be volatile and fluctuate substantially, which could result in substantial losses for purchasers of our common stock****.*

Our stock price may be volatile. The stock market in general and the market for smaller specialty pharmaceutical companies and biotechnology, in particular, have experienced extreme volatility that has often been unrelated to the operating performance of particular companies or the quality of the underlying assets. As a result of this volatility, you may not be able to sell your common stock at or above the price you paid for such shares. The market price for our common stock may be influenced by many factors, including but not limited to:

● reduction in stock price could indicate impairment of the goodwill and intangible assets;

● market conditions in the pharmaceutical and biotechnology sectors;

● general economic, industry, and market conditions; and

● the other factors described in this "Risk Factors" section.

***We will require additional capital funding, the receipt of which may impair the value of our common stock.***

Our future capital requirements depend on many factors, including our research, development, sales and marketing activities. We will need to raise additional capital through public or private equity or debt offerings or through arrangements with strategic partners or other sources in order to continue to develop our product candidates. There can be no assurance that additional capital will be available when needed or on terms satisfactory to us, if at all. To the extent we raise additional capital by issuing equity securities, our shareholders may experience substantial dilution and the new equity securities may have greater rights, preferences or privileges than our existing common stock.

***Our common stock is currently subject to the "Penny Stock" Rules of the SEC and the trading market in our securities is limited, which makes transactions in our stock cumbersome and may reduce the value of an investment in our stock.***

As of December 31, 2024, we had net assets of net assets of approximately $7.5 million and our common stock had a market price per share of less than $5.00. As a result, transactions in our common stock are subject to the SEC's "penny stock" rules. The designation of our common stock as a "penny stock" likely limits the liquidity of our common stock. Prices for penny stocks are often not available to buyers and sellers and the market may be very limited. Penny stocks are among the riskiest equity investments. Broker-dealers who sell penny stocks must provide purchasers of these stocks with a standardized risk-disclosure document prepared by the SEC. The document provides information about penny stocks and the nature and level of risks involved in investing in the penny stock market. A broker must also provide purchasers with bid and offer quotations and information regarding broker and salesperson compensation and make a written determination that the penny stock is a suitable investment for the purchaser and obtain the purchaser's written agreement to the purchase. Many brokers choose not to participate in penny stock transactions. Because of the penny stock rules, there may be less trading activity in penny stocks. Because shares of our common stock are currently subject to these penny stock rules, your ability to trade or dispose of shares of our common stock may be adversely affected.

***We may not be able to achieve secondary trading of our stock in certain states because our common stock is no longer nationally traded, which could subject our stockholders to significant restrictions and costs.***

Our common stock is not currently eligible for trading on the Nasdaq Capital Market or on a national securities exchange. Therefore, our common stock is subject to the securities laws of the various states and jurisdictions of the United States in addition to federal securities law. While we may register our common stock or qualify for exemptions for our common stock in one of more states, if we fail to do so the investors in those states where we have not taken such steps may not be allowed to purchase our stock or those who presently hold our stock may not be able to resell their shares without substantial effort and expense. These restrictions and potential costs could be significant burdens on our stockholders.

***If we fail to maintain an effective system of internal controls over financial reporting, we may not be able to accurately report our financial results. As a result, current and potential stockholders could lose confidence in our financial reporting, which could harm our business and the trading price of our stock.***

Effective internal controls over financial reporting are necessary for us to provide reliable financial reports. If we cannot maintain effective controls and reliable financial reports, our business and operating results could be harmed. For example, our small size and limited staffing levels do not allow for segregation of duties that exist at larger companies. We have conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2024, based on the criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework). Based on that evaluation, our management concluded that our internal controls over financial reporting were not effective as of December 31, 2024. While we continue to work on remedying our weaknesses and maintaining effective internal controls over financial reporting; however, there can be no assurance that a material weakness will not occur in the future, or our material weaknesses would be rectified. Any failure to implement and maintain controls over our financial reporting or difficulties encountered in the implementation of improvements in our controls could cause us to fail to meet our reporting obligations. Any failure to maintain our internal controls over financial reporting or to address identified weaknesses in the future, if they were to occur, could also cause investors to lose confidence in our reported financial information, which could have a negative impact on the trading price of our stock.

***Issuance of additional equity securities may adversely affect the market price of our common stock.***

We are authorized to issue up to 750,000,000 shares of our common stock. As of November 17, 2025, we had 442,596,586 shares of common stock outstanding and also had approximately 107,255,684 shares of common stock issuable upon conversion of convertible notes, 37,240,289 shares of common stock underlying outstanding warrants, and 23,802,761shares of common stock issuable upon the exercise of outstanding options.

To the extent that additional shares of common stock are issued or options and warrants are exercised, holders of our common stock will experience dilution. In addition, in the event of any future issuances of equity securities or securities convertible into or exchangeable for common stock, holders of our common stock may experience dilution.

Our Board of Directors is authorized to issue preferred stock without any action on the part of our stockholders. Our Board of Directors also has the power, without stockholder approval, to set the terms of any such preferred stock that may be issued, including voting rights, conversion rights, dividend rights, preferences over our common stock with respect to dividends or if we liquidate, dissolve or wind up our business and other terms. If we issue preferred stock in the future that has preference over our common stock with respect to the payment of dividends or upon our liquidation, dissolution or winding up, or if we issue preferred stock with voting rights that dilute the voting power of our common stock, the market price of our common stock could decrease. Any provision permitting the conversion of any such preferred stock into our common stock could result in significant dilution to the holders of our common stock.

We also consider from time-to-time various strategic alternatives that could involve issuances of additional common or preferred stock, including but not limited to acquisitions and business combinations.

***We have no plans to pay dividends on our common stock, and you may not receive funds without selling your common stock.***

We have not declared or paid any cash dividends on our common stock, nor do we expect to pay any cash dividends on our common stock for the foreseeable future. We currently intend to retain any future earnings, if any, to finance our operations and growth and, potentially, for future stock repurchases and, therefore, we have no plans to pay cash dividends on our common stock. Any future determination to pay cash dividends on our common stock will be at the discretion of our Board of Directors and will be dependent on our earnings, financial condition, operating results, capital requirements, any contractual restrictions, and other factors that our board of directors deems relevant.

Accordingly, you may have to sell some or all of your common stock in order to generate cash from your investment in the Company. You may not receive a gain on your investment when you sell our common stock and may lose the entire amount of your investment.

***The Company and EdgePoint will require additional capital funding, the receipt of which may impair the value of our common stock and EdgePoint's common stock.***

Our future capital requirements and EdgePoint's future capital requirements depend on many factors, including our research, development, sales and marketing activities as well as the development of EdgePoint's business. We and EdgePoint will need to raise additional capital through public or private equity or debt offerings or through arrangements with strategic partners or other sources in order to continue to develop our product candidates. There can be no assurance that additional capital will be available when needed or on terms satisfactory to us or EdgePoint, if at all. To the extent we and/or EdgePoint raise additional capital by issuing equity securities, our shareholders and EdgePoint's shareholders may experience substantial dilution and the new equity securities may have greater rights, preferences or privileges than our existing common stock and EdgePoint's common stock and the Securities contemplated to be issued as described in this Confidential Offering Memorandum.

**General Risk Factors**

***Unfavorable global epidemic or pandemic conditions could adversely affect our business, financial condition or results of operations.***

Our operations and the financial results of our operations could be adversely affected by general conditions in the global economy and in the global financial markets. Global financial concerns have caused, and may continue to cause, extreme volatility and disruptions in the capital and credit markets. A severe or prolonged economic downturn could result in a variety of risks to our business, including our ability to raise additional capital when needed on acceptable terms, if at all. We cannot currently anticipate all of the ways in which the current economic climate and financial market conditions could adversely impact our business.

***A material amount of our assets represents intangible assets, and our net income would be reduced, or our net loss would be increased, if our intangible assets became impaired.***

As of December 31, 2024, our gross intangible assets and goodwill from our 2019 PointR acquisition represented approximately $1.1 million and approximately $2.8 million, respectively and after recording an impairment loss of $3.2 million; and the fair value of our investment in our JV was approximately $22.7 million, representing approximately 99% of our total assets. Goodwill is generated in our acquisitions when the cost of an acquisition exceeds the fair value of the net tangible and identifiable intangible assets we acquire. Goodwill and indefinite-lived intangible assets are subject to an impairment analysis at least annually based on fair value. Intangible assets relate primarily to in-process research and development ("*IPR&D*") and patents acquired by us as part of our acquisitions of other companies and are subject to an impairment analysis whenever events or changes in circumstances exist that indicate that the carrying value of the intangible asset might not be recoverable. If market and economic conditions or business performance deteriorate, the likelihood that we would record an impairment charge would increase, which impairment charge could materially and adversely affect our financial condition and operating results. As the market capitalization of our Company was adversely impacted due to a reduction in the stock price of our common stock, during the year ended December 31, 2024, we recorded an impairment of approximately $3.2 million on the goodwill representing the difference in net assets over the fair value of the Company, based on our market capitalization.

***We have formed a DAO company to operate with a DAO infrastructure within the rigor of a corporation.***

In November 2022, the Company formed a DAO entity, Pet2DAO Inc., as a wholly owned subsidiary. Pet2DAO is a DAO technology company, integrating the strong governance of traditional corporations with the innovative DAO architecture. The Company will look to engage stakeholders, to build value through the DAO, while maintaining the rigor of traditional corporations, including governance, compliance, and accountability through a team of veterans in public companies with innovators in AI, blockchain and Web3. Pet2DAO will initially be looking to develop products for the animal health space. The Company will initially issue regular tokens and NFTs of Pet2DAO called PDAO to its employees, shareholders and KOLs and use the Tokens to propose and vote on various animal health related programs. In the future, the Company will evaluate and plan to register these tokens with the SEC to make such Tokens freely tradable at a future point in time. The Company cannot predict the outcome of Pet2DAO as an entity, how investors will look at this new development, especially with what is happening in the crypto currency environment, the success of the tokens, whether we will be able to register the tokens as securities or the success to make these tokens freely tradable. Any failure of a DAO could cause investors of the Company to discontinue to be invested in the Company, and which could have a negative impact on the trading price of our stock.

**Risks Related to Mast Hill Equity Line**

***Mast Hill's sales of our Shares into the open market may cause material decreases in our stock price.***

The 309,717,647 shares of our common stock that are being registered herein and may be sold into the market by Mast Hill, could cause our stock price to decline. In turn, if our stock price declines and we issue more Put Notices, this would cause more shares to come into the market, which could cause a further drop in our stock price.

***Funding from our Purchase Agreement with Mast Hill may be limited or insufficient to fund our operations or to implement our strategy.***

Under the Equity Purchase Agreement Mast Hill, and upon effectiveness of the registration statement of which this prospectus is a part, and subject to other conditions, we may direct Mast Hill to purchase up to 294,117,647 shares of our common stock over a 24-month period. At an assumed hypothetical purchase price of $0.0825 (equal to 97% of the closing price of our common stock of $0.05 on November 17, 2025, as defined in the section entitled "Equity Purchase Agreement with Mast Hill Fund" in this prospectus) and assuming the sale by us to Mast Hill of all of the 309,717,647 Shares, or approximately 39.1% of our issued and outstanding common stock, including the issuance of such shares, being registered hereunder pursuant to Put Notes under the Equity Purchase Agreement, we would receive approximately $25 million in gross proceeds.

There can be no assurance that we will be able to receive all or any of the total commitment from Mast Hill because the Equity Purchase Agreement contains certain limitations, restrictions, requirements, conditions and other provisions that could limit our ability to cause Mast Hill to buy common stock from us. For instance, we are prohibited from issuing a Put Notice if the amount requested in such Put Notice exceeds the Maximum Put Amount, or the sale of Shares pursuant to the Put Notice would cause us to sell or Mast Hill to purchase an aggregate number of shares of the Company's common stock which would result in beneficial ownership by Mast Hill of more than 4.99% of our common stock (as calculated pursuant to Section 13(d) of the Exchange Act and the rules and regulations thereunder). Moreover, there are limitations with respect to the frequency with which we may provide Put Notices to Mast Hill under the Equity Purchase Agreement. Also, as discussed above, there must be an effective registration statement covering the resale of any Shares to be issued pursuant to any draw down under the Equity Purchase Agreement, and the registration statement of which this prospectus is a part covers the resale of only 294,117,647 Shares that may be issuable pursuant to put notices under the Equity Purchase Agreement. The registration statements may be subject to review and comment by the staff of the Securities and Exchange Commission (the "SEC" or the "Commission") and will require the consent of our independent registered public accounting firm. Therefore, the timing of effectiveness of the registration statements cannot be assured.

The extent to which we rely on Mast Hill as a source of funding will depend on a number of factors, including the amount of working capital needed, the prevailing market price of our common stock and the extent to which we are able to secure working capital from other sources. If obtaining sufficient funding from Mast Hill were to prove unavailable or prohibitively dilutive, we would need to secure another source of funding. Even if we sell all 294,117,647 shares of common stock under the Purchase Agreement with Mast Hill, we will still need additional capital to fully implement our current business, operating plans and development plans.

***The sale or issuance of our common stock to Mast Hill at a discount may cause substantial dilution and the resale of the shares of common stock by Mast Hill into the public market, or the perception that such sales may occur, could cause the price of our common stock to fall.***

Under the Equity Purchase Agreement with Mast Hill, upon effectiveness of the registration statement of which this prospectus is a part, and subject to other conditions, we may direct Mast Hill to purchase up to 294,117,647 of our shares of common stock over a 24-month period. We are registering an aggregate of 309,717,647 (including 8,000,000 shares underlying the secured note, 5,350,000 shares underlying the warrants and 2,250,000 Commitment shares already issued) shares of common stock in the registration statement of which this prospectus is a part pursuant to the Registration Rights Agreement, representing shares which have been and may be issuable to Mast Hill under the Equity Purchase Agreement. Notwithstanding Mast Hill's beneficial ownership limitation set forth in the Equity Purchase Agreement, if all of the 309,717,647 shares offered under this prospectus were issued and outstanding as of November 17, 2025, such shares would represent approximately 39.1% of the total number of shares of our common stock outstanding of 752,314,233. The number of shares ultimately offered for sale by Mast Hill under this prospectus is dependent upon a number of factors, including the number of Shares we ultimately issue and sell to Mast Hill under the Equity Purchase Agreement. Because the actual Purchase Price for the Shares that we may sell to Mast Hill will fluctuate based on the market price of our common stock during the term of the Equity Purchase Agreement, we are not able to determine at this time the exact number of shares of our common stock that we will issue under the Equity Purchase Agreement and, therefore, the exact number of shares we will ultimately register for resale under the Securities Act.

Specifically, because the price per share subject to a Put Notice will be equal to a 3% discount to certain trading prices of our common stock as set forth in the Equity Purchase Agreement, Mast Hill will pay less than the then-prevailing market price for our common stock, and the actual Equity Purchase price for the Shares that we may sell to Mast Hill will fluctuate based on the VWAPs and closing prices of our common stock during the term of the Equity Purchase Agreement. As a result of this discount, Mast Hill may have a financial incentive to sell our common stock immediately to realize the profit equal to the difference between the Equity Purchase price and the market price. If Mast Hill sells the common stock, the market price of our common stock could decrease. If the market price of our common stock decreases, Mast Hill may have a further incentive to sell the common stock that it holds. These sales may have a further impact on the market price of our common stock.

Moreover, there is an inverse relationship between the market price of our common stock and the number of shares of our common stock that may be sold pursuant to the Equity Purchase Agreement. That is, the lower the market price, the more shares of our common stock that may be sold under the Equity Purchase Agreement. Accordingly, if the market price of our common stock decreases (whether such decrease is due to sales by Mast Hill in the market or otherwise) and, in turn, the Equity Purchase price of our common stock sold to Mast Hill under the Equity Purchase Agreement decreases, this could allow Mast Hill to receive greater numbers of shares of our common stock pursuant to put notices under the Equity Purchase Agreement. Although the number of shares of our common stock that our existing stockholders own will not decrease, the common stock owned by our existing stockholders will represent a smaller percentage of our total outstanding shares after any such sales to Mast Hill. Depending on market liquidity at the time, the sale of a substantial number of shares of our common stock to Mast Hill at a discount to the then-prevailing market price for our common stock under the Equity Purchase Agreement, and the resale of such shares by Mast Hill into the public market, or the perception that such sales may occur, could cause the trading price of our common stock to decline, result in substantial dilution to existing stockholders and make it more difficult for us to sell equity or equity-related securities in the future at a time and at a price that we might otherwise wish to effect sales.

For a tabular disclosure of the number of securities and percentage ownership to be issued assuming we sell all the securities on the registration statement and assuming sales to Mast Hill at various discounts to our current market price, please see "Equity Purchase Agreement with Mast Hill Fund" on page 27 of this prospectus.

***We may use the net proceeds from sales of our common stock to Mast Hill pursuant to the Equity Purchase Agreement in ways with which you may disagree.***

We intend to use the net proceeds from sales of our common stock to Mast Hill pursuant to the Equity Purchase Agreement for working capital and general corporate purposes. As of the date of this prospectus, we cannot specify with certainty all of the particular uses of the proceeds from sales of common stock to Mast Hill pursuant to the Equity Purchase Agreement. Accordingly, we will have significant discretion in the use of the net proceeds of sales of common stock to Mast Hill pursuant to the Equity Purchase Agreement. It is possible that we may allocate the proceeds differently than investors in this offering desire or that we will fail to maximize our return on these proceeds. We may, subsequent to this offering, modify our intended use of the proceeds from sales of common stock to Mast Hill pursuant to the Equity Purchase Agreement to pursue strategic opportunities that may arise, such as potential acquisition opportunities. You will be relying on the judgment of our management with regard to the use of the net proceeds from the sales of common stock to Mast Hill pursuant to the Equity Purchase Agreement, and you will not have the opportunity, as part of your investment decision, to assess whether the proceeds are being used appropriately. Any failure to apply the proceeds from sales of common stock to Mast Hill pursuant to the Equity Purchase Agreement effectively could have a material adverse effect on our business and cause a decline in the market price of our common stock.

***Cautionary Note***

We have sought to identify what we believe to be the most significant risks to our business, but we cannot predict whether, or to what extent, any of such risks may be realized nor can we guarantee that we have identified all possible risks that might arise. Investors should carefully consider all of such risk factors before making an investment decision with respect to our common stock.

**USE OF PROCEEDS**

We will not receive any proceeds from the disposition and/or resale of the shares of common stock by the Selling Stockholder or their transferees. We will, however, receive cash proceeds from the Put Notices we issue to Mast Hill under the Equity Purchase Agreement. While we retain broad discretion on the use of proceeds, we currently intend to use any proceeds from Put Notices to fund our working capital and general operational needs.

**DETERMINATION OF OFFERING PRICE**

The shares of common stock offered by the Selling Stockholder under this prospectus may be sold from time to time at prices and terms determined by the Selling Stockholder at or prior to the time of sale. The Selling Stockholder may sell shares at prevailing market prices at the time of sale, at prices related to such prevailing market prices, at fixed prices, or at prices otherwise negotiated with purchasers.

As part of our arrangement with Mast Hill, the Selling Stockholder may acquire shares of our common stock from us at a discount to the then-current market price, as set forth in the Equity Purchase Agreement. The actual purchase price per share paid by the Selling Stockholder will be the lesser of: (i) 97% of the lowest VWAP during the two (2) trading days immediately following the Clearing Date associated with a Put Notice (the "Valuation Period") or (ii) 102% of the lowest traded price during the Valuation Period (provided, however, that if a minimum price is specified and the common stock trades below the minimum price, then the purchase price under clause (ii) instead becomes equal to the minimum price specified in the relevant Put Notice). If a minimum price is specified by the Company in a Put Notice and the common stock trades at a price per share that is less than the minimum price during the Valuation Period then the number of shares with respect to such Put Notice shall automatically be reduced to the number of shares sold by the Selling Stockholder prior to the first time that the common stock traded below the minimum price during the Valuation Period.

The offering price for the shares resold by the Selling Stockholder may be influenced by a number of factors, including our financial condition and results of operations, Selling Stockholder's purchase price, the market for our common stock at the time of the resale, general market and economic conditions, and other factors beyond our control. We will not receive any proceeds from sales of shares by the Selling Stockholder other than those proceeds received upon the selling stockholder's purchase of shares pursuant to a Put Notice under the Equity Purchase Agreement.

**DILUTION**

If you purchase shares of common stock in this resale offering, you will experience dilution to the extent that the price per share you pay exceeds the net tangible book value per share of our common stock immediately prior to the resale.

As of September 30, 2025, our net tangible book value was approximately $[&nbsp;&nbsp;&nbsp;&nbsp;] million, or $[&nbsp;&nbsp;&nbsp;&nbsp;] per share of common stock. Net tangible book value per share is calculated by subtracting total liabilities and intangible assets from total assets, then dividing by the number of shares of common stock outstanding as of that date.

The Selling Stockholder may offer and sell shares of our common stock from time to time at prices it determines at the time of sale. Since the Selling Stockholders may sell the shares at market prices or at negotiated prices, purchasers may experience immediate and substantial dilution.

As of September 30, 2025, our net tangible book value was approximately $(18.5) million, or $(0.042) per share of common stock. Net tangible book value per share is calculated by subtracting total liabilities and intangible assets from total assets, then dividing by the number of shares of common stock outstanding as of that date.

After giving effect to (a) the sale and issuance of 294,117,647 shares of common stock to Mast Hill pursuant to the Equity Purchase Agreement at an assumed average sale price of $0.085 per share of common stock (which is the closing sale price of our common stock on November 17, 2025), our as adjusted net tangible book value as of September 30, 2025 would have been approximately $6.5 million, or $0.009 per share. This represents an immediate increase in net tangible book value of $0.015 per share to existing stockholders and an immediate dilution of $0.07 per share to new investors. Dilution in net tangible book value per share represents the difference between the amount per share paid by purchasers of common stock in this offering, assuming a purchase price of $0.085 per share of common stock (which was the closing sale price of our common stock on November 17, 2025), and our as adjusted net tangible book value per share after giving effect to this offering.

The following table illustrates the estimated dilution to new investors upon resale, assuming a purchase price of $0.85 per share:

---

| | | |
|:---|:---|:---|
| Public offering price per share |  | $0.085 |
| &nbsp;&nbsp;&nbsp;Net tangible book value per share as of September 30, 2025 | $| $(0.042) |
| &nbsp;&nbsp;&nbsp;Increase per share attributable to this offering |  | 0.015 |
| As adjusted net tangible book value per share, after giving effect to this offering |  | 0.009 |
| Dilution per share to investors purchasing our common stock in this offering |  | $0.070 |

---

The foregoing tables and calculations (other than net tangible book value calculations) are based on 439,446,318 shares of our common stock outstanding as of September 30, 2025. The number of shares outstanding as of that date excludes:

● 23,802,761 shares of common stock issuable upon exercise of outstanding stock options at a weighted average exercise price of $0.15.

● 37,420,289 shares of common stock issuable upon exercise of outstanding warrants at a weighted average exercise price of $0.11.

● 107,255,684 shares of common stock issuable upon exercise of outstanding convertible promissory notes.

To the extent that outstanding options or warrants are exercised or performance-based stock units and options vest and settle, you may experience further dilution. In addition, we may choose to raise additional capital due to market conditions or strategic considerations even if we believe we have sufficient funds for our current or future operating plans. To the extent that we raise additional capital by issuing equity or convertible debt securities, your ownership will be further diluted.

**SELLING SECURITY HOLDERS**

The Selling Stockholder under this prospectus is Mast Hill. The manner in which the Selling Stockholder acquired or will acquire shares of our common stock is discussed below under "The Offering." While this prospectus covers up to 294,117,647 shares for delivery under the Equity Purchase Agreement, the actual number of shares delivered will depend on the Put Notices delivered by the Company to the Selling Stockholder. The Selling Stockholder has not had any position, office or other material relationship within the past three years, with us or with any of our predecessors or affiliates.

The Selling Stockholder may from time to time offer and sell under this prospectus any or all of the shares of common stock described under the column "Shares of Common Stock Being Offered" in the table below. The Selling Stockholder, will be deemed to be an underwriter within the meaning of the Securities Act. Any profits realized by the Selling Stockholder may be deemed to be underwriting commissions.

We may require the Selling Stockholder to suspend sales of common stock under this prospectus upon the occurrence of any event that makes any statement in this prospectus or the related registration statement untrue in any material respect or that requires the changing of statements in those documents in order to make statements in those documents not misleading.

The following table sets forth the name of the Selling Stockholder, the number of shares of our common stock beneficially owned by such stockholder before this offering, the number of shares to be offered for such stockholders' account and the number and (if one percent or more) the percentage of the class to be beneficially owned by such stockholders after completion of the offering.

The number of shares owned are those beneficially owned, as determined under the rules of the SEC, and such information is not necessarily indicative of beneficial ownership for any other purpose. Under such rules, beneficial ownership includes any shares of our common stock as to which a person has sole or shared voting power or investment power and any shares of common stock which the person has the right to acquire within 60 days of the date as of which the information is provided, through the exercise of any option, warrant or right, through conversion of any security or pursuant to the automatic termination of a power of attorney or revocation of a trust, discretionary account or similar arrangement, and such shares are deemed to be beneficially owned and outstanding for computing the share ownership and percentage of the person holding such options, warrants or other rights, but are not deemed outstanding for computing the percentage of any other person. Beneficial ownership percentages are calculated based on 442,596,586 shares of our common stock outstanding as of September 30, 2025 and including the issuance of such shares to be purchased and Commitment Fee Shares to be issued.

The persons and entities named in the table have sole voting and sole investment power with respect to the Shares set forth opposite the Selling Stockholder's name, subject to community property laws, where applicable. The number of shares of common stock shown as beneficially owned before the offering is based on information furnished to us or otherwise based on information available to us at the timing of the filing of the registration statement of which this prospectus forms a part. The Equity Purchase Agreement contains a "blocker" provision that restricts the Selling Stockholders beneficial ownership to 4.99% of the number of common stock shares outstanding immediately after giving effect to the issuance of common stock shares issuable pursuant to a Put Notice. Because the Selling Stockholder may offer and sell all or only some portion of the 294,117,647 shares of our common stock being offered pursuant to this prospectus, we can only estimate the number and percentage of shares of our common stock that the selling stockholder will hold upon termination of the offering. The column titled "Number of Shares Owned After Offering" assumes that the Selling Stockholder will sell all of their Shares

---

| | | | |
|:---|:---|:---|:---|
| **Name of Selling Shareholder** | **Shares Beneficially**<br>**Owned**<br>**Prior to Offering** | **Shares to be**<br>**Offered** | **Amount**<br>**Beneficially Owned After Offering %** |
| Mast Hill Fund<sup>(1)</sup> |  | 294117647<sup>(2)</sup> | 0 |
| Mast Hill Fund<sup>(1)</sup> | 2250000 | 2250000<sup>(3)</sup> | 0 |
| Mast Hill Fund<sup>(1)</sup> | 8000000 | 8000000<sup>(4)</sup> | 0 |
| Mast Hill Fund<sup>(1)</sup> | 5350000 | 5350000<sup>(5)</sup> | 0 |

---

Notes:

1) Mast Management serves as the investment manager to Mast Hill. Farzan Hassani ("Mr. Hassani"), and Mr. George Murphy ("Mr. Murphy") are members of Mast Management, and as such, exercise voting and dispositive power with respect to the shares of our common stock that are beneficially owned by Mast Hill. Mr. Murphy and Mr. Hassani disclaim beneficial ownership of these securities, except to the extent of their respective pecuniary interest therein.

2) Consists of up to 294,117,647 shares of common stock to be sold by Mast Hill pursuant to Put Notices we shall issue to Mast Hill pursuant to the Equity Purchase Agreement.

3) Consists of 2,250,000 Commitment Shares issued to Mast Hill on July 31, 2025.

4) Consists of up to 8,000,000 shares underlying the secured note issued to Mast Hill on July 31, 2025. The actual number of shares of common stock issuable upon the conversion of the convertible debentures is subject to adjustment depending on, among other factors, the future market price of our common stock, and could be materially less or more than the number estimated in the table.

5) Consists of up to 2,000,000 shares underlying the warrants issued pursuant to the Note Purchase Agreement and 3,350,000 shares underlying warrants issued pursuant to the Equity Purchase Agreement entered into with Mast Hill on July 31 and August 1, 2025, respectively.

**THE OFFERING**

---

| | |
|:---|:---|
|  | **Summary of the Offering** |
| Shares currently outstanding: | 442,596,586, not including the issuance of such shares to be purchased by Mast Hill. |
| Shares being offered: | 294,117,647 shares of common stock that we may issue to Mast Hill pursuant to Put Notices under the Equity Purchase Agreement, 3,350,000 shares underlying a warrant issued under the Equity Purchase Agreement, 2,250,000 shares issued as Commitment Shares to Mast Hill under the Note Purchase Agreement; 8,000,000 shares issuable upon conversion of an outstanding convertible promissory note issued under the Note Purchase Agreement and 2,000,000 shares underlying an outstanding warrant issued under the Note Purchase Agreement. |
| Offering Price per share: | The Selling Stockholder may sell all or a portion of the shares being offered pursuant to this prospectus at fixed prices, at prevailing market prices at the time of sale, at varying prices, or at negotiated prices. |
| Use of Proceeds: | We will not receive any proceeds from the sale of the shares of our common stock by the Selling Stockholder. However, we will receive proceeds from receive cash proceeds from Put Notices we issue to Mast Hill pertaining to the 294,117,647 shares being registered in connection with the Equity Purchase Agreement. |
| OTC Markets Symbol: | OTLC |
| Risk Factors: | See "Risk Factors" beginning on page 7 and the other information in this prospectus for a discussion of the factors you should consider before deciding to invest in shares of our common stock. |

---

**Equity Purchase Agreement with Mast Hill Fund**

On August 1, 2025, we entered into the Equity Purchase Agreement with Mast Hill. Although we are not required to sell shares under the Equity Purchase Agreement, the Equity Purchase Agreement gives us the option to sell up to an aggregate of $25,000,000 worth of our common stock to Mast Hill (the "Maximum Commitment Amount"), in increments, over the period ending on the earlier of (i) the date on which Mast Hill shall have purchased shares equal to the Maximum Commitment Amount, (ii) 24 months after the initial effectiveness of this registration statement, (iii) our written notice of termination to Mast Hill, (iv) the date that this registration statement is no longer effective, or (v) the date that, pursuant to or within the meaning of any Bankruptcy Law, we commence a voluntary case or any person commences a proceeding against us, a custodian is appointed for us or for all or substantially all of our property, or we make a general assignment for the benefit of its creditors.

During the Commitment Period, we may, in our sole discretion, deliver a Put Notice to Mast Hill stating the dollar amount we intend to sell to Mast Hill on a designated closing date. The purchase price of our common stock will be the lesser of: (i) 97% of the lowest VWAP during the two (2) trading days immediately following the Clearing Date associated with a Put Notice (the "Valuation Period") or (ii) 102% of the lowest traded price during the Valuation Period (provided, however, that if a minimum price is specified and the common stock trades below the minimum price, then the purchase price under clause (ii) instead becomes equal to the minimum price specified in the relevant Put Notice). If a minimum price is specified by the Company in a Put Notice and the common stock trades at a price per share that is less than the minimum price during the Valuation Period then the number of shares with respect to such Put Notice shall automatically be reduced to the number of shares sold by the Selling Stockholder prior to the first time that the common stock traded below the minimum price during the Valuation Period.

We are not entitled to deliver a Put Notice and Mast Hill is not obligated to purchase any Put Shares at a Closing unless all of the following conditions are met:

&nbsp;&nbsp;&nbsp;&nbsp;1. A
 registration statement has been declared effective and remains effective (or a post-effective registration statement, if needed,
 has been filed and declared effective).

&nbsp;&nbsp;&nbsp;&nbsp;2. We
 maintain and continue our stock quotation on the Principal Markets (OTC or other national exchange) and the trading of our common
 stock shall not have been suspended by the SEC, the Principal Markets, or FINRA.

3. We
 have performed, satisfied and completed in all material respects with all covenants, agreements and conditions of the Equity Purchase
 Agreement to be performed, satisfied or complied with by us.

4. The
 issuance of the shares has not violated any shareholder approval requirements of Principal Markets.

5. The
 lowest trading price of our common stock in the 10 trading days preceding the respective Put Date must exceed $0.01 per share.

6. The
 issuance of the Put Shares shall not exceed the Exchange Cap; Exchange Cap is defined as if when the issuance of the Put Shares exceeds
 the aggregate number of common stock shares which we may issue without breaching our obligations under the rules and regulations
 of the Principal Market.

7. Since
 the date of filing of our most recent SEC Document, no event that had or is reasonably likely to have a Material Adverse Effect has
 occurred.

8. The
 number of Put Shares then to be purchased by Mast Hill shall not exceed the number of such shares that, when aggregated with all
 other shares of common stock then owned by the Investor beneficially or deemed beneficially owned by the Investor, would result
 in the Mast Hill beneficially owning more than 4.99%, as determined in accordance with Section 16 of the Exchange Act and the regulations promulgated thereunder.

9. We
 shall have no knowledge of any event more likely than not to have the effect of causing the registration statement to be suspended
 or otherwise ineffective (which event is more likely than not to occur within the fifteen (15) Trading Days following the Trading
 Day on which such Put Notice is deemed delivered).

10. Our
 common stock must be DWAC Eligible.

11. All
 reports, schedules, registrations, forms, statements, information and other documents required to have been filed by the Company
 with the SEC pursuant to the reporting requirements of the Exchange Act shall have been filed with the SEC within
 the applicable time periods prescribed for such filings under the Exchange Act.

12. We
 shall have reserved 100% of the Required Minimum for Mast Hill's benefit under this Agreement and satisfied the reserve requirements
 with respect to all other contracts between us and Mast Hill.

If any of the events described above occurs during a pricing period, then Mast Hill shall have no obligation to purchase the shares delivered in the Put Notice. There is no guarantee that we will be able to meet the foregoing conditions or any of the other conditions in the Equity Purchase Agreement or that we will be able to Put any portion of the Total Commitment available under the Equity Purchase Agreement with Mast Hill.

Neither Mast Hill nor any of its affiliates are permitted to execute any short sales involving our common stock, during the period commencing on August 1, 2025, and continuing through the end of the Commitment Period, however, sales of our common stock by Mast Hill after delivery of a Put Notice of such number of shares reasonably expected to be purchased by Mast Hill under a Put Notice will not be deemed short sales.

Neither the Equity Purchase Agreement nor any of our rights or Mast Hill's rights thereunder may be assigned to any other person, and none of the terms or conditions contained in the Equity Purchase Agreement may now be amended or waived by the parties..

The Equity Purchase Agreement also provides for indemnification of Mast Hill and its affiliates in the event that Mast Hill incurs losses, liabilities, obligations, claims, contingencies, damages, costs and expenses related to a breach by us of any of our representations and warranties under the Equity Purchase Agreement or the other related transaction documents or any action instituted against Mast Hill or its affiliates due to the transactions contemplated by the Equity Purchase Agreement or other transaction documents, subject to certain limitations. The Registration Rights Agreement indemnifies Mast Hill for the aggregate in losses, claims, damages liabilities, judgements, fines, penalties, charges, costs, reasonable attorneys' fees, amounts paid in settlement, incurred in investigating, preparing or defending any action, claim, suit inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental, administrative, or other regulatory agency, body or the SEC, to which the Company may become based upon any material violation by Mast Hill of the Securities Act, the Exchange Act, state securities laws relating to the offer or sale of the Registrable Securities pursuant to the registration statement.

We paid to Mast Hill a commitment fee of 2,250,000 shares for entering into the Note Purchase Agreement, equal to a Black-Scholes fair value of $57,880 calculated using a per share closing price of $0.05 as of July 31, 2025, the last trading day prior to August 1, 2025 the day such Commitment Fee Shares were issued, using an expected term of 1 year, expected volatility of 136.3%, risk free interest rate of 4.1% and dividend yield of 0%.

The issuances of the Commitment Shares and the sale of the Shares to Mast Hill under the Equity Purchase Agreement are exempt from registration under the Securities Act pursuant to the exemption for transactions by an issuer not involving any public offering under Section 4(a)(2) of and Regulation D under the Securities Act.

**Registration Rights Agreement with Mast Hill**

We entered into Registration Rights Agreement dated August 1, 2025 with Mast Hill requiring us to file a registration statement on Form S-1 providing for the registration of an indeterminate number of shares of our common stock that result from our selling to Mast Hill an indeterminate number of shares up to an aggregate purchase price of $25,000,000 and the subsequent resale by Mast Hill of such shares. We are required to use our reasonable best efforts to have the registration statement on Form S-1 declared effective by the SEC within 90 calendar days from August 1, 2025 and to keep it effective during the term of the Equity Purchase Agreement.

The effectiveness of the registration statement of which this prospectus is a part is a condition precedent to our ability to sell common stock to Mast Hill under the Equity Purchase Agreement. We have agreed to file with the SEC one or more additional registration statements to cover all of the securities required to be registered under the Registration Rights Agreement that are not covered by this prospectus, in each case, as soon as practicable, but in no event later than the applicable filing deadline for such additional registration statements as provided in the Registration Rights Agreement.

We also agreed, among other things, to indemnify Mast Hill from certain liabilities and fees and expenses of Mast Hill incident to our obligations under the Registration Rights Agreement, including certain liabilities under the Securities Act. Mast Hill has agreed to indemnify and hold harmless us and each of our directors, officers and persons who control us against certain liabilities that may be based upon written information furnished by Mast Hill to us for inclusion in the registration statement of which this prospectus is a part, including certain liabilities under the Securities Act.

Mast Hill may not assign its rights under the Registration Rights Agreement other than to an affiliate of Mast Hill. The registration statement of which this prospectus is a part will not cover sales by Mast Hill's transferees, notwithstanding Mast Hill's right to assign its rights with respect to Commitment Fee under the Registration Rights Agreement. None of the terms or conditions contained in the Registration Rights Agreement may now be amended or waived by the parties.

**Effect of Put Notices and Sale of Shares**

As we issue Put Notices pursuant to the Equity Purchase Agreement, shares of our common stock will be sold into the market by Mast Hill. The sale of these shares could cause our stock price to decline. If our stock price declines and we issue more puts, more shares will come into the market, which could cause a further decline in our stock price. We determine when and whether to issue a put to Mast Hill, so we will know precisely both the stock price used as the reference point, and the number of shares issuable to Mast Hill upon such exercise. You should be aware that there is an inverse relationship between the market price of our common stock and the number of shares to be issued under the Equity Purchase Agreement. We have no obligation to utilize the full amount available under the Equity Purchase Agreement and all determinations regarding the execution of a Put Notice remains solely in the discretion of our company.

There is no assurance the market price of our common stock will increase in the future. Dependent upon the share price, the number of common shares that remain issuable may be insufficient to allow us to access the full amount contemplated under the Equity Purchase Agreement. If the bid/ask spread remains the same, we will be unable to place puts for the full commitment under the Equity Purchase Agreement. Based on the closing trading price of our common stock on November 17, 2025 of $0.0850, the registration statement covers the offer and possible sale of up to 309,717,647 shares to Mast Hill, which includes the 2,250,000 common stock Commitment Fee Shares issued to Mast Hill on August 3, 2025 as well as 8,000,000 shares issuable upon conversion of an outstanding convertible promissory note and 5,350,000 shares underlying an outstanding warrant.

The number of shares of our common stock ultimately offered for resale by Mast Hill is dependent upon a number of factors, including the extent to which we ultimately issue and sell to Mast Hill under the Equity Purchase Agreement. The following table sets forth the total number of Shares that would be issued at varying purchase prices for us to receive the entire $25,000,000 in gross proceeds under the Equity Purchase Agreement (without accounting for certain fees and expenses):

---

| | | | |
|:---|:---|:---|:---|
| **Assumed Average**<br> **Purchase Price<sup>(1)</sup>** | **Total Number of**<br> **Shares to be Issued if**<br> **Full Purchase** | **Percentage of**<br> **Currently**<br> **Outstanding**<br> **Shares <sup>(1)</sup>** | **Gross proceeds from**<br> **the Sale of Shares to**<br> **Mast Hill**<br> **Under the Equity Purchase Agreement** |
| $0.0206<sup>(2)</sup> | 1212856777 | 264.70% | 25000000 |
| $0.0412<sup>(3)</sup> | 606428426 | 132.35% | 25000000 |
| $0.0618<sup>(4)</sup> | 404285426 | 88.23% | 25000000 |
| $0.1031<sup>(5)</sup> | 242571255 | 5294% | 25000000 |
| $0.1237<sup>(6)</sup> | 202142713 | 44.12% | 25000000 |

---

(1) The denominator is based on 442,596,586 shares outstanding as of November 17, 2025. The numerator is based on the number of Shares issuable to Mast Hill under the Equity Purchase Agreement at the corresponding assumed average purchase price set forth in the adjacent column.

(2) Assumes average purchase price of $0.0206 is equal to 97% of 25% of the closing sale price of our common stock of $0.0850 on November 17, 2025.

(3) Assumes average purchase price $0.0412 is equal to 97% of 50% of the closing sale price of our common stock of $0.0850 on November 17, 2025.

(4) Assumes average purchase price of $0.0618 is equal to 97% of 75% of the closing sale price of our common stock of $0.0850 on November 17, 2025.

(5) Assumes average purchase price of $0.1031 is equal to 97% of 125% of the closing sale price of our common stock of $0.0850 on November 17, 2025.

(6) Assume average purchase price $0.1237 is equal to 97% of 150% of the closing sale price of our common stock of $0.0850 on November 17, 2025.

The following table sets forth the amount of proceeds we would receive from Mast Hill from the sale of Shares under the Equity Purchase Agreement that are registered in this offering at varying purchase prices (without accounting for certain fees and expenses) in the event Mast Hill is restricted to hold no more than 4.99% of the issued and outstanding shares of common stock:

---

| | | | |
|:---|:---|:---|:---|
| **Assumed Average**<br> **Purchase Price** | **Number of**<br> **Registered**<br> **Shares to be**<br> **Issued** | **Percentage of**<br> **Currently**<br> **Outstanding**<br> **Shares <sup>(1)</sup>** | **Proceeds from**<br> **the Sale of Shares to**<br> **Mast Hill**<br> **Under the Equity Purchase Agreement** |
| $0.0206<sup>(2)</sup> | 20373793 | 4.99% | $286306 |
| $0.0412<sup>(3)</sup> | 20373793 | 4.99% | $572612 |
| $0.0618<sup>(4)</sup> | 20373793 | 4.99% | $858918 |
| $0.1031<sup>(5)</sup> | 20373793 | 4.99% | $1431530 |
| $0.1237<sup>(6)</sup> | 20373793 | 4.99% | $1717836 |

---

(1) The denominator is based on 442,596,586 shares outstanding as of November 17, 2025. The numerator is based on the number of Shares issuable to Mast Hill under the Equity Purchase Agreement at the corresponding assumed average purchase price set forth in the adjacent column.

(2) Assumes average purchase price of $0.0206 is equal to 97% of 25% of the closing sale price of our common stock of $0.0850 on November 17, 2025.

(3) Assumes average purchase price $0.0412 is equal to 97% of 50% of the closing sale price of our common stock of $0.0850 on November 17, 2025.

(4) Assumes average purchase price of $0.0618 is equal to 97% of 75% of the closing sale price of our common stock of $0.0850 on November 17, 2025.

(5) Assumes average purchase price of $0.1031 is equal to 97% of 125% of the closing sale price of our common stock of $0.0850 on November 17, 2025.

(6) Assume average purchase price $0.1237 is equal to 97% of 150% of the closing sale price of our common stock of $0.0850 on November 17, 2025.

**PLAN OF DISTRIBUTION**

The Selling Stockholder, Mast Hill, may, from time to time, sell any or all of its shares of our common stock on otcmarkets.com or any other stock exchange, market or trading facility on which the shares of our common stock are traded, or in private transactions. These sales may be at fixed prices, prevailing market prices at the time of sale, at varying prices, or at negotiated prices. The selling stockholder may use any one or more of the following methods when selling shares:

● Ordinary
 brokerage transactions and transactions in which the broker-dealer solicits purchases;

● Block
 trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as
 principal to facilitate the transaction;

● Purchases
 by a broker-dealer as principal and resale by the broker-dealer for its account;

● Privately
 negotiated transactions;

● Broker-dealers
 may agree with the selling stockholders to see a specified number of such shares at a stipulated price per share; or

● A
 combination of any such methods of sale.

Additionally, broker-dealers engaged by the Selling Stockholder may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the Selling Stockholder (or, if any broker-dealer acts as agent for the purchaser of shares, from the purchaser) in amounts to be negotiated, but, except as set forth in a supplement to this prospectus, in the case of an agency transaction not in excess of a customary brokerage commissions in compliance with FINRA Rule 2440; and in the case of a principal transaction, a markup or markdown in compliance with FINRA IM-2440. Broker-dealers may agree with the Selling Stockholder to sell a specified number of shares at a stipulated price per share, and, to the extent such a broker-dealer is unable to do so acting as agent for the Selling Stockholder, to purchase as principal any unsold shares at the price required to fulfill the broker-dealer commitment to the Selling Stockholder. Broker-dealers who acquire shares as principal may thereafter resell such shares from time to time in one or more transactions (which may involve crosses and block transactions and which may involve sales to and through other broker-dealers, including transactions of the nature described above and pursuant to the one or more of the methods described above) at fixed prices, at prevailing market prices at the time of the sale, at varying prices determined at the time of sale, or at negotiated prices, and in connection with such resales may pay to or receive from the purchasers of such shares commissions computed as described above. To the extent required under the Securities Act, an amendment to this prospectus or a supplemental prospectus will be filed, disclosing:

● the
 name of any such broker-dealers;

● the
 number of shares involved;

● the
 price at which such shares are to be sold;

● the
 commission paid or discounts or concessions allowed to such broker-dealers, where applicable;

● that
 such broker-dealers did not conduct any investigation to verify the information set out or incorporated by reference in this prospectus,
 as supplemented; and

● other
 facts material to the transaction.

The resale shares will be sold only through registered or licensed brokers or dealers if required under applicable state securities laws. In addition, in certain states, the resale shares may not be sold unless they have been registered or qualified for sale in the applicable state or an exemption from the registration or qualification requirement is available and is complied with.

Mast Hill has informed us that it does not have any written or oral agreement or understanding, directly or indirectly, with any person to distribute the common stock.

The Selling Stockholder is an underwriter within the meaning of the Securities Act and any broker-dealers or agents that are involved in selling the shares may be deemed to be "underwriters" within the meaning of the Securities Act in connection with such sales. Any commissions received by such broker-dealers or agents, and any profit on the resale of the shares purchased by them, may be deemed to be underwriting commissions or discounts under the Securities Act. Pursuant to a requirement by FINRA, the maximum commission or discount to be received by any FINRA member or independent broker-dealer may not be greater than 8% of the gross proceeds received by us for the sale of any securities being registered pursuant to Rule 415 promulgated under the Securities Act. Discounts, concessions, commissions and similar selling expenses, if any, attributable to the sale of shares will be borne by the Selling Stockholder. The Selling Stockholder may agree to indemnify any agent, dealer, or broker-dealer that participates in transactions involving sales of the shares if liabilities are imposed on that person under the Securities Act.

Under applicable rules and regulations under the Exchange Act any person engaged in the distribution of the resale shares may not simultaneously engage in market making activities with respect to the common stock for the applicable restricted period, as defined in Regulation M, prior to the commencement of the distribution. In addition, the Selling Stockholder will be subject to applicable provisions of the Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of shares of the common stock by the Selling Stockholder or any other person. We will make copies of this prospectus available to the Selling Stockholder.

We have agreed to pay all expenses of the registration of the shares of common stock pursuant to the registration rights agreement, estimated to be approximately $40,000 in total, including, without limitation, Securities and Exchange Commission filing fees and expenses of compliance with state securities or "Blue Sky" laws; but not including fifty percent (50%) of Mast Hill's selling commissions, concessions and discounts, and other amounts payable to underwriters, dealers or agents, if any, that we agreed to pay or all of Mast Hill's transfer taxes and certain other expenses associated with the sale of the shares of common stock, if any. We have agreed to indemnify Mast Hill and certain other persons against certain liabilities in connection with the offering of shares of common stock offered hereby, including liabilities arising under the Securities Act or, if such indemnity is unavailable, to contribute amounts required to be paid in respect of such liabilities. Mast Hill has agreed to indemnify us against liabilities under the Securities Act that may arise from any written information furnished to us by Mast Hill specifically for use in this prospectus or, if such indemnity is unavailable, to contribute amounts required to be paid in respect of such liabilities.

At any time, a particular offer of the shares of common stock is made by the Selling Stockholder, a revised prospectus or prospectus supplement, if required, will be distributed. Such prospectus supplement or post-effective amendment will be filed with the SEC to reflect the disclosure of any required additional information with respect to the distribution of the shares of common stock. We may suspend the sale of shares by the Selling Stockholder pursuant to this prospectus for certain periods of time for certain reasons, including if the prospectus is required to be supplemented or amended to include additional material information

**DESCRIPTION OF SECURITIES TO BE REGISTERED**

**Authorized Capital Stock**

We are authorized to issue 765,000,000 shares of capital stock, including 750,000,000 shares of common stock, $0.01 par value and 15,000,000 shares of preferred stock with such rights privileges and preferences as may be determined by our Board of Directors from time to time. At November 17, 2025 we had 442,596,586 shares of common stock and 4,065 shares of preferred stock outstanding.

**Common Stock Rights**

Our common stock does not provide preemptive, subscription or conversion rights and there is no redemption or sinking fund provisions or rights. Each share of our common stock entitles its holder to one vote in the election of each director and on all other matters voted on generally by our stockholders. Our common stockholders are not entitled to cumulative voting for election of Board members. Holders of our common stock are entitled to dividends in such amounts and at such times as our Board of Directors in its discretion may declare out of funds legally available for the payment of dividends.

**Dividend Rights**

There are no restrictions in our Articles of Incorporation or Bylaws that prevent us from declaring dividends. The Delaware General Corporation Law, however, does prohibit us from declaring dividends where after giving effect to the distribution of the dividend:

1. We would not be able to pay our debts as they become due in the usual course of business; or

2. Our total assets would be less than the sum of our total liabilities plus the amount that would be needed to satisfy the rights of shareholders who have preferential rights superior to those receiving the distribution

We have never declared or paid any cash dividends on our common stock. We currently intend to retain future earnings, if any, to finance the expansion of our business. As a result, we do not anticipate paying any cash dividends on our common stock in the foreseeable future.

**Market for Common Equity**

The Company's common stock trades on the OTCQB market, operated by OTC Markets, under the symbol "OTLC".

The SEC has adopted rules that regulate broker-dealer practices in connection with transactions in "penny stocks." Penny stocks generally are equity securities with a price of less than $5.00, other than securities registered on certain national securities exchanges or quoted on the NASDAQ system, provided that current price and volume information with respect to transactions in such securities is provided by the exchange or system. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver to the prospective purchaser a standardized risk disclosure document prepared by the SEC that provides information about penny stocks and the nature and level of risks in the penny stock market. In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from such rules; the broker-dealer must make a special written determination that the penny stock is a suitable investment for the prospective purchaser and receive the purchaser's written agreement to the transaction. Furthermore, subsequent to a transaction in a penny stock, the broker-dealer will be required to deliver monthly or quarterly statements containing specific information about the penny stock. It is anticipated that our common stock will be traded on an OTC market at a price of less than $5.00. In this event, broker-dealers would be required to comply with the disclosure requirements mandated by the penny stock rules.

These disclosure requirements will likely make it more difficult for investors in this offering to sell their common stock in the secondary market.

**Holders of our Common Stock**

As of November 17, 2025, there were approximately 83 stockholders of record of our common stock.

**Preferred Stock**

We are authorized to issue 15,000,000 preferred shares, of this amount 5,000,000 shares have been designated as Series A Convertible Preferred Stock.

Series A Convertible Preferred Stock is convertible at the option of the holder into shares of common stock at the rate of one for one-thousand. Series A Convertible Preferred Stock otherwise does not provide preemptive, subscription or conversion rights and there is no redemption or sinking fund provisions or rights. Each share of our Series A Convertible Preferred Stock entitles its holder to vote in the election of each director and on all other matters voted on generally by our stockholders on an as converted basis. Holders of our Series A Convertible Preferred Stock are entitled to dividends in such amounts and at such times as our Board of Directors in its discretion may declare out of funds legally available for the payment of dividends including amounts declared on common stock on an as converted basis.

Our board of directors is authorized from time to time to fix the designations and the powers, preferences and relative, participating, optional or other special rights, and qualifications, limitations or restrictions thereof, including, without limitation, the dividend rate, conversion or exchange rights, redemption price and liquidation preference, of any other series of shares of preferred stock, and to fix the number of shares constituting any such series, and to increase or decrease the number of shares of any such series (but not below the number of shares thereof then outstanding). Any or all of these rights may be superior to the rights of our common stock.

**Options and Warrants**

As of November 17, 2025 we had 37,240,289 shares of common stock outstanding underlying warrants with a weighted average exercise price of $0.11 per share and a weighted average term of 1.28 years.

As of November 17, 2025 we had 23,802,761 shares of common stock underlying currently outstanding options with a weighted average exercise price of $0.15 per share.

**Convertible Debt**

As of November 17, 2025, we had approximately 107,255,604 shares of common stock underlying convertible debt.

**Transfer Agent and Registrar**

Our transfer agent is Equiniti, a registered transfer agent. Equiniti is located at 6201 15th Avenue, Brooklyn, NY 11219 and its telephone number is (800) 937-5449.

**Securities Authorized for Issuance Under Equity Compensation Plans**

The following table provides certain aggregate information with respect to all of the Company's equity compensation plans in effect as of December 31, 2024.

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| | | | |
|:---|:---|:---|:---|
| **Plan Category** | **Number of Securities**<br>**to be Issued Upon**<br>**Exercise of**<br>**Outstanding Options,**<br>**Warrants and Rights** | **Weighted-Average**<br>**Exercise Price of**<br>**Outstanding**<br>**Options** | **Number of Securities Remaining**<br>**Available for Future Issuance**<br>**Under Equity Compensation**<br>**Plans (Excluding Securities**<br>**Reflected in Column (a))** |
| Equity compensation plans approved by security holders | 22527761 | $0.22 | 3205021 |
| Equity compensation plans not approved by security holders | 1650000 | 0.30 | 350000 |
| Total | 24177761 | $0.23 | 3555021 |

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**Brief Description of equity compensation plan not approved by security holders**

In January 2017, the Board of Directors adopted and approved the 2017 Plan. The 2017 Plan allows the Company, under the direction of the Compensation Committee, to make grants of stock options, restricted and unrestricted stock awards, and other stock-based awards to employees, consultants and directors. The purpose of these awards is to attract and retain key individuals, further align employee and stockholder interests, and provide additional incentive for them to promote our success. The 2017 Plan provides for the issuance of up to 2,000,000 shares of the Company's common stock. Any stock options granted under the 2017 Plan must be non-qualified stock options, which are not intended to meet the requirements of Section 422 of the Internal Revenue code. Options generally vest over a period of time, may not be exercised unless they are vested, and no option may be exercised after the end of the term set forth in the award agreement.

**Unregistered Sales of Securities**

No unregistered securities were issued during the fiscal year that were not previously reported in an Annual Report on Form 10-K, Quarterly Report on Form 10-Q or Current Report on Form 8-K.

**LEGAL MATTERS**

Sheppard Mullin Richter & Hampton LLP will pass on the validity of the common stock being offered pursuant to this registration statement. Sheppard Mullin Richter & Hampton LLP has never owned any of our securities.

**NAMED EXPERTS**

The consolidated financial statements of Oncotelic Therapeutics, Inc. as of December 31, 2024 and 2023 incorporated in this prospectus by reference from the Oncotelic Therapeutics, Inc. Annual Report on Form 10-K for the year ended December 31, 2025 have been audited by Rose, Snyder and Jacobs LLP. They are independent registered public accounting firm, as stated in their report thereon which report expresses an unqualified opinion and includes an explanatory paragraph relating to the Company's ability to continue as a going concern, incorporated herein by reference, and have been incorporated in this prospectus and registration statement in reliance upon such reports and upon the authority of such firm as experts in accounting and auditing.

**WHERE YOU CAN FIND MORE INFORMATION**

We filed a registration statement on Form S-1 with the SEC under the Securities Act with respect to the common stock offered by Selling Shareholder in this prospectus. This prospectus, which constitutes a part of the registration statement, does not contain all of the information set forth in the registration statement or the exhibits and schedules filed therewith. For further information with respect to us and our common stock, please see the registration statement and the exhibits and schedules filed with the registration statement. Statements contained in this prospectus regarding the contents of any contract or any other document that is filed as an exhibit to the registration statement are not necessarily complete, and each such statement is qualified in all respects by reference to the full text of such contract or other document filed as an exhibit to the registration statement.

We file annual, quarterly, and current reports, proxy statements, and other information with the SEC. The registration statement and these other materials are available free of charge on the SEC's website at www.sec.gov.

**DESCRIPTION OF BUSINESS**

**Overview**

We are a clinical-stage biopharmaceutical company developing drugs for the treatment of orphan oncology indications, developing antisense and small molecule injectable drugs for the treatment of cancer. After the acquisition of Mateon Therapeutics, Inc through a reverse merger in 2019, we realigned the company pipeline to focus on various cancers, including but not limited to rare pediatric cancers. The United States Food and Drug Administration ("*FDA*") has granted us Rare Pediatric Designations ("*RPD*") for pediatric Diffuse Intrinsic Pontine Glioma ("*DIPG*") for OT-101, which was transferred to our joint venture as part of the joint venture agreement (see "*JV*" below), pediatric melanoma for CAP4 and acute myeloid leukemia ("*AML*") for Oxi4503. In addition, the Company, through it's JV, is developing 5 additional products for treatments of various cancers. Each of the products being developed by the JV has the potential of becoming very successful drugs. The JV is contemplating developing and obtaining regulatory approval for each of the 5 additional products via different regulatory pathways and in various countries and regions. Further, the Company aims to capitalize on a voucher program in the United States ("*US*"). By focusing on capitalizing on the RPD we anticipate: 1) reducing the cost of clinical development by way of a smaller and faster clinical trial, 2) acceleration of the approval process and final approval, 3) obtaining regulatory/ marketing exclusivity for up to 12 years as a biologic, and 4) obtaining vouchers worth a significantly large monetary value upon regulatory approval, which can be upwards of several million dollars. Approval in the US could allow for approval in the rest of the world ("*ROW*") using the US dossier. Phase 3 clinical trials for approval in adult indications could be conducted following the positive interim read of the pediatric trials. This approach maximizes return on investment for the shareholders.

Concurrently we also explore opportunities to create value for shareholders by forming strategic alliances and/or licensing our product portfolio. In this connection, in March 2022, the Company entered into a joint venture ("*JV*") with Dragon, affiliates of Golden Mountain Partners, LLC, to form GMP Biotechnology, Limited ("*GMP Bio*"). GMP Bio and the Company are also looking to take the JV into an initial public offering ("*IPO*") of the JV and which is anticipated to be a liquidity event for Company, especially if the IPO is successful. While we believe that the IPO can be completed and would be successful, we cannot provide assurance for either of the events to occur; or if they occur, and then whether the IPO would be successful.

We believe we are well positioned as a biotech company with our drug candidate OT-101 through our JV- targeting high value TGF-β2, and the new product portfolio being developed by the JV, for various cancers and COVID-19, PointR artificial intelligence (*"AI"*) for clinical trials, research and development, Edgepoint for developing technologies for manufacturing and for developing technologies for supporting our COVID-19 programs, our vascular disruptor proven safe in more than 500 patients capable of causing massive antigen release which would stimulate immune response against the cancerous tumor and apomorphine, which we in-licensed in 2021, for developing against Parkinson's Disease (*"PD"*), erectile disfunction (*"ED"*) and female sexual disfunction (*"FSD"*).

We may also plan to continue to develop OT-101, through our JV, an antisense against TGF-β2 – for the treatment of various viruses, which would include the severe acute respiratory syndrome ("*SARS*") and the coronavirus ("*COVID-19*"), on its own and in conjunction with other compounds. Viral replication cannot occur without TGF-β; and TGF-β surge and a cytokine storm cannot occur without TGF-β. A Phase 2 trial was completed for OT-101 in South America. This was a randomized, double-blind, placebo-controlled Phase 2 study to evaluate the safety and efficacy of OT- 101 in adult patients hospitalized with positive COVID-19 and pneumonia. Based on the final results of the trial, the trial was planned to be expanded into a Phase 3 trial; however with the impact of COVID-19 reducing in the past year, the Company will be re-evaluating this treatment for further development upon the occurrence or recurrence of the COVID-19 or any similar virus. We were conducting an observational study in conjunction with the Biomedical Advanced Research and Development Authority ("*BARDA*". For more information on BARDA, refer to our 2023 Annual Report on Form 10-K filed with the SEC on April 12, 2024. At this time, since the impact of COVID-19 has significantly reduced, the development of OT-101 for COVID-19 is not a top priority. In addition, during 2020 and 2021, the Company was developing Artemisinin as a potential therapy for the virus causing COVID-19. Again, with the impact of COVID-19 reducing over the past year or so, we have put on hold any further development of Artemisinin, till we have another severe virus situation. We will focus on any future development on Artemisinin against other respiratory viruses with unmet needs when the circumstances arise. For more information on Artemisinin, refer to our 2022 Annual Report on Form 10-K filed with the SEC on April 14, 2023.

In September 2021, Oncotelic entered into an exclusive License Agreement (the "Agreement") with Autotelic, Inc. ("*Autotelic*"), pursuant to which Autotelic granted Oncotelic the exclusive right and license to certain Autotelic Patents for AL-101 - an intranasal apomorphine asset with clear 505(b)2 pathway to approval for PD as well unique mechanism of action for treatment of ED and FSD. For more information on AL-101, refer to our 2022 Annual Report on Form 10-K filed with the SEC on April 14, 2023.

We currently have three primary drugs of our own, 6 drugs through our JV, and AI technology programs we are seeking to advance, presently or in the future:

● AL-101 - Intranasal drug and delivery system for intra-nasal Apomorphine for the treatment of PD, ED and FSD.

● CA4P- a vascular disrupting agent ("VDA") - in combination with Ipilimumab for the treatment of solid tumors with focus on melanoma in adult and pediatric melanoma. A RPD has been granted to the Company by the FDA for pediatric melanoma.

● Oxi4503- a second generation VDA - for the treatment of liquid tumors with focus on childhood leukemia. A RPD has been granted to the Company by the FDA for AML.

● OT-101 - an antisense against TGF-β2 –for the treatment of various cancers and for the treatment of various viruses, including COVID-19, on its own and in conjunction with other compounds.. This is being advanced through our JV.

● Five additional nanoparticle products - for the treatment of various cancers, using various regulatory pathways and for various regions/countries. This is being advanced through our JV.

● Artemisinin – a natural derivative from an Asian herb Artemisia Annua - Artemisinin has shown to be highly potent at inhibiting the ability of various viruses to multiply. This will be advanced through our JV at an appropriate time.

● Developing newer AI based technologies to enhance the development and commercialization of support technologies. The JV has acquired a non-exclusive license for the AI platform developed by PointR/EdgePoint for implementation in a planned CDMO.

In November 2022, the Company formed a Decentralized autonomous organization ("*DAO*") entity, Pet2DAO, Inc. ("*Pet2DAO*"), as a wholly owned subsidiary. A DAO is an emerging form of legal structure, that has no central governing body, and whose members share a common goal to act in the best interest of the entity. Pet2DAO is a DAO technology company, integrating the strong governance of traditional corporations with the innovative DAO architecture. The Company will look to engage stakeholders, to build value through the DAO, while maintaining the rigor of traditional corporations, including governance, compliance, and accountability through a team of veterans in public companies with innovators in AI, blockchain and Web3. Pet2DAO will be looking to develop products for the animal health space. The Company will initially issue utility tokens and non-fungible tokens ("*NFT*" and cumulatively "*Tokens*") of Pet2DAO, called PDAO, to its employees, shareholders and key opinion leaders ("*KOLs*') and use the Tokens to propose and vote on various human and animal health related programs. In the future, the Company will evaluate and plans to register these tokens with the SEC to make such Tokens freely tradable.

**Our products, including our JV products, under development**

**AL-101: PD/ ED/FSD**

Oncotelic acquired AL-101 for the intranasal delivery of apomorphine for the treatment of PD. Over 60,000 new patients being diagnosed with PD in the United States and currently there are over 1 million patients in the US and expected to increase to over 1.2 million by 2030. In addition, approximately 10 million suffer from this disease globally. https://www.parkinson.org/Understanding-Parkinsons/Statistics. AL-101 is also being developed for ED. ED is the most prevalent male sexual disorder globally. The percentages of men affected by ED are as follows: 14.3-70% of men aged 60 years, 6.7-48% of men aged 70 years, and 38% of men aged 80 years (Geerkens MJM et al. (2019). Eur Urol Focus. pii: S2405-4569(19)30079-3). However, with the increasing administration of PDE5 inhibitors in clinical practice, it was found that approximately 30-35% of ED patients are treatment failures (McMahon CN et al. (2006). BMJ, 332: 589-92). AL-101 is designed to target treatment failure ED patients who do not respond to PDE5 inhibitors. Through similar mechanism of action, AL-101 is being developed for FSD. FSD is a prevalent problem, afflicting approximately 40% of women and there are few treatment options. FSD is more typical as women age and is a progressive and widespread condition. (Allahdadi, KJ et al. (2009) Cardiovascular & hematological agents in medicinal chemistry, 7(4), 260-269). There is no available drug for the treatment of FSD. In June 2019, the FDA approved Vyleesi (bremelanotide) to treat acquired, generalized hypoactive sexual desire disorder ("*HSDD*") in premenopausal women. This is the only available drug treatment. Vyleesi has essentially replaced the only other drug for HSDD, however, it has a long list of drug-drug interactions, including commonly used antidepressants, such as fluoxetine and sertraline. In addition, it has a black box warning regarding its use with alcohol, a combination that has been associated with hypotension and syncopal episodes. Therefore, there is an urgent need for effective therapy against FSD and HSDD.

**CA4P as an Immuno-Oncology Agent**

Radiation therapy, recognized for its potent cytotoxic effect on cancer cells by inducing direct DNA damage, can sometimes elicit a systemic antitumoral response. Irradiation releases a plethora of neoantigens and pro- inflammatory cytokines, acting like an in-situ vaccine, resulting in tumor regression within the primary site, but may also occasionally result in regression of distant secondary lesions. This regression of distant cancer metastases when the primary tumor is irradiated is defined as the abscopal effect. Yet, an abscopal effect with radiotherapy alone occurs infrequently, signifying that the antitumor immunity caused by radiation is not sufficient to abolish the tumor and its metastases nor able to prevent the metastatic process or the immunosuppressing effect the cancer exhibits on the host's systemic macroenvironment. Recently, several studies have confirmed the synergistic antitumoral immunity caused by the combination of radiation with immunotherapy, which has demonstrated a durable abscopal effect in patients with advanced malignancies. Postow, et al, Golden, et al, Hinicker, et al and others have all described early findings of a reproducible abscopal effect when combining irradiation with Ipilimumab and/or Nivolumab.

Similarly, CA4P causes rapid and widespread tumor cell necrosis. A number of laboratories have shown that the type of tumor cell death induced by ischemic necrosis not only controls the presence or absence of specific tumor antigens, but also can result in immunological responses ranging from immunosuppression to anti-tumor immunity. The terms "immunogenicity of cell death" or "immunogenic cell death" (ICD) is often used by scientists to describe the ability of dead/dying cells (especially of tumor cells) to mount antigen-specific and particularly CD8 + T-cell- mediated adaptive immune responses and not simply lead to innate inflammation. CD8 + T-cells play a significant role in tumor protection and development of this type of immunity. A modernized concept has emerged which defines immunogenic cell death in general because of mutual or consequent processes including endoplasmic reticulum stress release of "find-me" signals (e.g., ATP), exposure of "eat-me" signals (e.g., calreticulin, phosphatidylserine) and damage-associated molecular patterns (DAMPs [HMGB1, F-actin]). These molecular changes might occur in the cells undergoing necrotic death. These and other signals appear to be relevant to the potential for CA4P to increase immunogenicity following induction of ischemic necrosis.

Preclinical studies in which CA4P was combined with an anti-CTLA4 antibody using an EMT-6 mammary tumor model showed that 7 out of 8 mice receiving a combination of CA4P and an anti-CTLA4 antibody experienced complete remission of their tumors, compared to only 1 of 8 in the CA4P monotherapy arm and 2 of 8 in the anti- CTLA4 antibody monotherapy.

Three of four follow-up preclinical studies confirmed that CA4P combined with immuno-oncology agents could delay tumor growth. Follow-up studies were conducted in a CT26-32 colon cancer model, a larger tumor EMT- 6 mammary cancer model, and a C3H mammary cancer model. Studies in a CT-26-32 colon cancer animal model using CA4P combined with anti-CTLA4 antibodies demonstrated a 77% reduction in tumor size compared to immuno- oncology agents alone, and an 89% reduction in tumor size compared to control. This large tumor model also showed a survival benefit for the animals receiving combination therapy, with all animals in the combination therapy group surviving to the end of the study, compared to no animals surviving on the control and only half of the animals surviving that received immuno-oncology agents alone.

Additional analyses of changes induced within tumors following combination therapy have shown that CA4P increases the immunogenic effect of checkpoint inhibitors when used alone as monotherapy. Tumor-fighting white blood cell counts, T-cells and cytotoxic T-cells compared to immuno-oncology agents alone. Tumor necrosis with the combination of CA4P and immuno-oncology agents is nearly double the necrosis with only immuno-oncology agents (63.9% compared to 32.8%, control = 25.8%).

The overall data from all these studies provides evidence that CA4P may enhance the activity of immuno- oncology agents for the treatment of cancer, including anti-CTLA4 antibodies. Furthermore, CA4P has clinical activity in melanoma in early clinical testing and repeated demonstration of CA4P mediated necrotic tumor cell death across 17 completed clinical trials and >500 patients. During various phase 1 studies, we found that CA4P treatment resulted in significant disease control among patients with solid tumors who progressed on standard therapies. CA4P treatment resulted in 2 Stable Disease (SD) of 5 melanoma patients treated. The combination of CA4P with carboplatin and paclitaxel was well tolerated in the majority of patients with adequate premedication and had antitumor activity in patients who were heavily pretreated. Patients with advanced cancer refractory to standard therapy were treated with CA4P as a 10-min infusion, 20 h before carboplatin, paclitaxel, or paclitaxel, followed by carboplatin. Responses were seen in 10 of 46 (22%) patients with ovarian, esophageal, small-cell lung cancer, and melanoma. One Partial Response (PR) was observed of 6 melanoma patients treated follow progressing during first-line trial therapy with dacarbazine and sorafenib. In melanoma animal model- B16-F10 murine melanoma experimental tumors- seventy- four hours after drug administration, a decrease in the number of tumor blood vessels was apparent and necrotic areas within tumors were visible. Building on the single agent activity of CA4P, we are expecting that combination of CA4P with Ipilimumab or other immune-oncology drug would result in improved tumor control for these patients above the 2 PR out of 17 patients treated with Ipilimumab alone which supported the approval of Ipilimumab in pediatric melanoma.

**CA4P: Pediatric Melanoma**

Until the recent approval of ipilimumab as the first immunotherapy agent approved for children, metastatic or nonresectable pediatric melanoma did not have any FDA-approved therapies available. As for adult melanoma patients, the mainstay of care is surgical excision. Studies also show that children treated for melanoma should be closely monitored as they are at increased risk of recurrence later in life. However, there are only very limited data on the efficacy of systemic therapy in children and adolescents with advanced melanoma and new effective therapies are urgently needed. There are only very limited data on the efficacy of systemic therapy in children and adolescents with advanced melanoma. Several phase I/II trials have been designed to evaluate therapies for pediatric cancer patients that included subsets of patients with advanced melanoma.

Ipilimumab was evaluated in a phase I clinical study in children with unresectable stage IIIC or IV melanoma and in a pediatric phase II trial (NCT01696045) that included children aged 12 years or older with previously treated or untreated, unresectable stage III or IV malignant melanoma. Of the 17 melanoma patients older than 12 years treated with ipilimumab across both studies, two experienced objective responses. Immune-related adverse events included pancreatitis, pneumonitis, endocrinopathies, colitis, and transaminitis, with dose-limiting toxicities observed at 5 mg/kg. No grade 2 or higher immune-related toxicities were identified at doses of 3 mg/kg or less. Based upon the results of these studies and evidence from studies in adult patients, in July 2017, the FDA approved ipilimumab for the treatment of unresectable or metastatic melanoma in children aged 12 years and older.

It is expected that combination of CA4P with Ipilimumab or other immune-oncology drugs would result in improved tumor control for these patients above the 2 PR out of 17 patients treated with ipilimumab.

The FDA granted Rare Pediatric Disease Designation for CA4P/ Fosbretabulin tromethamine for the treatment of stage IIB–IV melanoma due to genetic mutations that disproportionately affect pediatric patients as a drug. Preclinical studies in which CA4P was combined with an anti-CTLA4 antibody using an EMT-6 mammary tumor model showed that 7 out of 8 mice receiving a combination of CA4P and an anti-CTLA4 antibody experienced complete remission of their tumors, compared to only 1 of 8 in the CA4P monotherapy arm and 2 of 8 in the anti-CTLA4 antibody monotherapy. This application is based on observed CA4P activity in melanoma in early clinical testing. During various phase 1 studies, we found that CA4P treatment resulted significant disease control among patients with solid tumors who progressed on standard therapies. CA4P treatment resulted in 2 Stable Disease (SD) of 5 melanoma patients treated. One Partial Response (PR) was observed of 6 melanoma patients treated follow progressing during first-line trial therapy with dacarbazine and sorafenib. Building on the single agent activity of CA4P, we are expecting that combination of CA4P with Ipilimumab or other immune-oncology drug would result in improved tumor control for the target pediatric population above the 2 PR out of 17 patients treated with Ipilimumab alone which supported the approval of Ipilimumab in pediatric melanoma.

**OXi4503 for Acute Myeloid Leukemia**

OXi4503 (combretastatin A1-diphsphate; CA1P) is a novel investigational VDA that has been shown to have a significant in vitro cytotoxic as well as chemo-sensitizing activity against human AML cells. OXi4503 also exhibited in vivo anti-leukemic activity in xenografted mice with human AML.

OXi4503 employs a new, broader strategy against AML than currently exists for standard chemotherapy, as it provides a dual mechanism of action involving both anti-vascular effects and direct cytotoxicity to AML cells. Vascular and/or Bone marrow endothelial cells ("*ECs*") appear to provide a protective effect for AML cells, keeping them dormant within the bone marrow. VDAs may target these ECs and reverse their chemo protective effect, providing a novel approach to the treatment of AML which may otherwise be resistant to other chemotherapeutic therapies. Preclinical data indicate that OXi4503 alone and in combination with traditional AML treatments such as cytarabine may provide significant benefit in eliminating AML cells. Results from two completed Phase I clinical trials demonstrated the clinical impact potential of OXi4503 against relapsed AML when it is alone or in combination with the standard chemotherapy drug cytarabine ("*ARA-C*") can induce complete remissions in relapsed AML patients. Notably, OXi4503 showed single agent activity in a clinical Phase I trial and resulted in complete remission of a relapsed AML patient. Sustained complete remissions were also achieved in relapsed AML patients who were treated with OXi4503 in combination with ARA-C.

OXi4503 has received orphan designation for AML in both the United States (Designation No. 12-3824) and the European Union (Designation No. EU/3/15/1587 - EMA/OD/144/15). In 2017, the FDA granted fast-track designation to OXi4503 for the treatment of relapsed/refractory AML. Oxi4503 met the qualifying criteria for the Fast Track designation since AML is a serious and life-threatening condition, and a large unmet medical need exists for additional treatment strategies for this disease.

The Investigator-Sponsored trial (IST) UF OXi4503 AML MDS Ph 1 (UF4503), "A Phase 1 Clinical Trial of OXi4503 for Relapsed and Refractory AML and Myelodysplastic Syndromes ("*MDS*") was designed to evaluate the safety profile and the maximum tolerated dose ("I") as well as a recommended Phase 2 dose (RP2D) of OXi4503 in patients with recurrent/refractory (R/R) AML and MDS (ClinicalTrials.gov NCT01085656) (14, 50). The clinical single agent activity of OXi4503 was also assessed within the confines of a Phase 1 clinical trial setting. A total of 18 patients enrolled in the study from February 2011 to January 2016. The patients were predominantly male (78%) and the median age was 62.5 years. Of the 15 patients with AML, 4 (27%) had primary refractory AML, 2 (13%) were in first relapse, and 9 (60%) had refractory AML beyond CR1.

Eight patients (44%) completed at least one cycle of CA1P and were evaluable for efficacy assessments. Of the eight patients evaluable, one achieved morphologic remission with incomplete blood count recovery ("*CRi*") after 1 cycle but came off study in cycle 2 due to fungal pneumonia. Three patients had stable disease after at least one cycle of CA1P. Three patients experienced progressive disease after 1 cycle of CA1P and were withdrawn from the study.

The Phase 1 dose-escalation combination of the Company sponsored study OX1222 (NCT02576301) was a Phase 1b dose escalation study of OXi4503 as a single agent and in combination with Cytarabine with subsequent combination Phase 2 cohorts for subjects with relapsed/refractory (R/R) AML and MDS. 29 subjects were treated with OXi4503 in combination with Cytarabine.

Of these 29 patients, one was evaluable for safety analysis, but no EFS/OS data or response data were available for activity evaluations. Of the 28 patients evaluable for EFS/OS outcome analyses, 26 had AML and 2 had MDS. For the 26 AML patients, there were 4 CRs. The CR responses were associated with prolonged overall survival substantially better the median OS time: One patient who became eligible for allogeneic PBSCT remains alive, free- of-leukemia at 720+ days. The overall survival times were 434 days, 521 days, 535 days, and 720 days, respectively. The median OS time for the 4 patients who achieved a CR/CRi was 528 (95% CI: 434 - NA) days which was significantly better than the median OS time of 113 (95% CI: 77 - 172) days for the remaining 22 AML patients who did not achieve a CR (Log Rank = 11.8, P-value = 0.0006).

Three of the 4 CR/CRis were achieved in 1st relapse patients while one patient with CRi had failed 5 previous regimens, including 7:3, HiDAC, and PBSCT. Patients who achieved a CR/CRi went on to receive other treatments after receiving 4-6 cycles of OXi4503. The median OS for all 26 AML patients who received therapy was 119 (95% CI: 87 - 232) days. Patients who had rapidly progressive disease or developed toxicity could not get as many OXi4503 doses as patients who responded to their treatment favorably. The median OS time for 18 patients receiving 1-3 doses Of OXi4503 was 82 (95% CI: 66 - 135) days and these patients exhibited a worse survival outcome compared to 9 patients receiving 4-6 doses which was recorded at 434 (95% CI: 191 - NA) days (Log Rank = 12.3, P-value = 0.0004).

**OXi4503: Pediatric AML**

Pediatric AML is most common during the first 2 years of life and during the teenage years. In the United States, about 730 people under age 20 are diagnosed with AML each year. The number of deaths was 0.6 per 100,000 children per year. These rates are age-adjusted and based on 2012-2016 cases.

Compared with pediatric acute lymphoblastic leukemia ("*ALL*"), the outlook for pediatric AML patients is far worse. Even though pediatric AML cases are far fewer than pediatric ALL, the mortality rate is about the same, illustrating that AML is a devastating disease and the need for continuing research to identify effective treatments for these children. The prognosis for AML in children remains relatively poor, with a 5-year survival rate of 64% compared with 90% in ALL.

Patients with poor-risk cytogenetics include those that lack any favorable changes and harbor any of the following cytogenetic abnormalities: monosomy 7, monosomy 5, deletion of 5q, abnormalities of 3q, t(6;9) (p23;q34), and complex karyotype which is defined as three or more cytogenetic abnormalities. Children and adolescents harboring these unfavorable features have survival of less than 50 percent, and in many cases less than 20 percent.

The standard of care for management of pediatric AML involves predominantly induction therapy intended to put the patient into remission and consolidation chemotherapy designed to eradicate leukemia cells that may have escaped front line induction therapy. Whereas >80% of pediatric AML patients will achieve remission, only about half will remain disease-free for an appreciable period of time. Approximately 30 percent of children with AML will experience relapse and only one third of them become long-term survivors after salvage therapy. Although cure rates for children and adolescents with AML have improved, outcomes for pediatric AML patients with adverse prognostic biologic features (e.g., high risk genetic mutations or chromosomal abnormalities) and refractory or relapsed disease who failed or did not respond to their initial standard induction chemotherapy remains poor and limited treatment options are available for these patients. Novel therapies for these high-risk patients are urgently needed. OXi4503 shows clinical potential and promise for this indication based on the proof-of-concept data obtained from nonclinical and clinical studies.

The FDA has granted a RPD for OXi4503 for the treatment of pediatric AML.

**Developments through our JV:**

**OT-101: An Antisense Against TGF-β2**

The pharmaceutical development of OT-101 is being advanced through our JV. This is being reported here for informational purposes only.

Trabedersen (AP12009, OT-101) is a novel antisense oligodeoxynucleotide ("*ODN*") developed by Oncotelic Inc. for the treatment of patients with pancreatic carcinoma, malignant melanoma, colorectal carcinoma, high-grade glioma ("*HGG*"), and other transforming growth factor beta 2 ("*TGF-β2*") overexpressing malignancies (e.g. prostate carcinoma, renal cell carcinoma, etc.). Trabedersen is a synthetic 18-mer phosphorothioate oligodeoxynucleotide ("*S-ODN*") complementary to the messenger ribonucleic acid ("*mRNA*") of the human TGF-β2 gene.

TGF-β is a multifunctional cytokine with a key role in promoting tumor growth and progression including cell proliferation, cell migration, and angiogenesis. Above all, TGF-β is a highly potent immunosuppressive molecule. Inhibition of TGF-β overexpression in tumor tissue represents a novel multimodal treatment principle leading to the reduction of tumor growth, inhibition of metastasis, and restoration of host antitumor immune responses. Despite its recognized pivotal role in cancer, therapeutics targeting TGF-β have not been successful and many have failed due to toxicity issues possibly due to inhibition of TGF-β1 essential functions. The high level of homology between the various TGF-β isoforms is making it impossible to create mAb or small molecule inhibitor without TGF-β1 cross-inhibition. Therefore, Oncotelic Inc. chose to target TGF-β2 only using OT-101 antisense approach. The sequence of OT-101 can only target TGF-β2 and does not have any impact on other TGF-β isotypes. However, suppression of TGF-β2 directly by OT-101 would also result in suppression of TGF-β2 indirectly, but not TGF-β3.

Trabedersen is believed to reverse TGF-β's immunosuppressive effects, rendering the tumor visible to a patient's immune system and resulting in priming and specific activation of the patient's anti-tumor immune response. OT-101 has completed multiple clinical trials with promising outcomes. OT-101, is being developed as a broad-spectrum anti-cancer drug that can also be used in combination with other standard cancer therapies to establish an effective multi-modality treatment strategy for difficult-to-treat cancers. Oncotelic plans to initiate phase 3 clinical trials for OT-101 in both high-grade glioma and pancreatic cancer. During phase 2 clinical trials in pancreatic cancer, melanoma, and colorectal cancers (Study P001) and in high-grade gliomas (Study G004), meaningful single agent activity with meaningful tumor reduction was observed, and OT-101 exhibited a favorable safety profile. Both partial and complete responses have been observed in the G004 Phase 2 clinical trial of OT-101 as a single agent in patients with aggressive brain tumors.

Oncotelic Inc.'s, and now the JV's, self-immunization protocol (SIP©) is based on the novel and proprietary sequential treatment of cancers with OT-101 (antisense against TGF-β2) and chemotherapies. Proper Sequencing of treatments is key to optimal immunotherapy. Leveraging from its in-depth knowledge of TGF-β immunotherapy, Oncotelic Inc. ordered the various treatments in the following sequence: (1) expand immune reserve through IL-2 treatment or infusion of immune cells; (2) prime immune response with TGF-β inhibitor OT-101; (3) boost immune response with chemotherapy; and (4) revitalize the exhausted of immune response with checkpoint inhibitors. This sequential treatment strategy is aimed at achieving effective self-immunization against a patients' own cancer, resulting in robust therapeutic immune response and consequently better control of the cancer and improved survival. Prolonged states of being cancer-free have been observed in some patients with the most aggressive forms of cancer, raising a renewed hope for a potential cure. The use of OT-101 lifts the suppression of the patient's immune cells around the cancer tissue, providing the foundation for an effective initial priming, which is critical for a successful immune response. The subsequent chemotherapy results in the release of neoantigens that result in a robust boost of the immune response. This process is termed Xenogenization process and can be: (1) hypermutation by temozolomide in the treatment of brain cancer, (2) immunogenic cell death by taxanes and 5FU in pancreatic cancer, or (3) necrotic cell death by VDA (vascular disrupting agent) in melanoma and MDS. Additionally, the Company believes that a rational combination of the Oncotelic Inc. SIP platform with immune-modulatory drugs like interleukin 2 (IL-2) and/or immune checkpoint inhibitors has the potential to help achieve sustained and robust immune responses in patients with the most difficult-to-treat forms of cancer. The combinations with IL-2 and NK are already partnered with external corporate partners. The Company entered into a JV with Dragon Overseas Capital Limited ("Dragon Overseas") and GMP Biotechnology Limited ("GMP Bio"), affiliates of GMP on March 31, 2022. GMP Bio and the Company will focus to further expand the development of OT-101 for various oncology indications like pancreatic cancer, melanomas, gliomas etc. as also for viral infections like COVID-19. This path is being evaluated as a monotherapy, as well as combination therapies in conjunction with other drugs like checkpoint inhibitors.

**Pancreatic Cancer**

Pancreatic cancer is associated with the poorest prognosis of gastrointestinal cancers and is expected to become the second leading cause of cancer-related mortality in the USA by 2030. Pancreatic cancer is traditionally considered to be an immune-resistant disease. There is a lack of effector T cells, an abundance of myeloid-derived suppressor T cells, and a dearth of key immune effector and regulatory cells. This may be part of the reason why single-agent checkpoint inhibitors are not as effective in comparison to other diseases. Here is where breaking immune tolerance by inhibiting TGF-β with OT-101 will have a significant impact.

The P001 trial was an open-label, multicenter dose-escalation study to evaluate the safety and tolerability of OT-101 (TGF-β2-specific Phosphorothioate Antisense Oligodeoxynucleotide) in adult patients with advanced tumors known to overproduce TGF- β2, which are not or no longer amenable to established therapies. The primary objective of the study was to determine the maximum tolerated dose (MTD) and the dose-limiting toxicities (DLTs) of two cycles of trabedersen administered intravenously (i.v.) on a 7-days-on/7-days-off or 4-days-on/10-days-off schedule. Secondary objectives included were: (1) determining the safety and tolerability of OT-101 administered intravenously at weekly intervals for four days every other week; (2) assessing the plasma pharmacokinetic profile of OT-101 administered intravenously at weekly intervals and for four days every other week; (3) establishing a suitable determination method and to assess the urine pharmacokinetic profile of OT-101 administered intravenously for four days every other week; (4) determining the effect of OT-101 administered intravenously at weekly intervals and for four days every other week on TGF-β2 plasma concentration levels; and (5) Assessing the potential antitumor activity of OT-101 administered intravenously at weekly intervals and for four days every other week, as assessed by the effect on tumor size and tumor markers.

Of the 61 patients treated, 37 had advanced treatment failure pancreas cancer, a very difficult-to-treat cancer with an overall survival rate that is measured in months even with the best available chemotherapy regimens. Globally, over 400,000 people die of pancreatic cancer each year. MTD was not reached for the 4-days-on/10-days-off schedule, which became the schedule adopted for the phase 2 expansion phase of the trial. Disease control (complete response (CR)), partial response (PR) or stable disease (SD)) was achieved in 19 of 35 evaluable pancreas cancer patients (54%). Among liver mets only patients, there are exceptional single-agent activity and survival. Patient 1006 was pushed to complete response (CR) and survived as far out as 77 mos. This patient failed multiple lines of therapies: (1) surgery: Whipple's procedure, (2) 1st line: 5-FU/LV, Dose 425 mg/m2, (3) 2nd line: 5-FU/LV, Dose 2600 mg/m2/24hr, (4) 3rd line: Gemcitabine, Dose 1000 mg/m2/week, and (5) went on to OT-101with liver mets and complete response. Patient 1022 was pushed to stable disease (SD) with overall survival of 40 months. This patient had also failed multiple lines of therapies: (1) surgery: Whipple's procedure, (2) 1st line: radiation therapy (50 Gy), (3) 2nd line: 5FU, and (4) went on to OT-101 with liver mets and stable disease.

OT-101 treatment more than doubled the ratio of patients being able to go onto subsequent chemotherapy versus not being able, and consistent with the expected immunization boost coming from Xenogenization with subsequent chemotherapies (taxanes and 5FU/Cisplatin) as discussed for SIP, those with subsequent chemotherapy exhibited increased mOS and more than doubled their 1 year survival. Patients treated with the non-SIP agent did not exhibit these properties.

The JV initiated a Phase 2/3 clinical trial for pancreatic cancer and is actively seeking participants to enroll into the study. While enrollment has been slow, due to a smaller patient population and the protocol, the JV is working hard to enroll patients and to complete the trial.

**Gliomas**

Brain tumors in the United States are rare and only accounted for 2% of all adult cancers. However, the rate of brain tumors on the rise for the last 30 years. The more common and most malignant form of brain tumors – glioblastoma ("*GBM*") has more than doubled from 2.4 to 5.0 per 100,000. In the face of this increase, treatment remained essentially unchanged during the last decade. And despite aggressive surgery followed by radiation and/or chemotherapy, GBM has the worst five–year survival rates among all human cancers, with an average survival from diagnosis of only about 1 year and less than 5% of the patient survived after 5 years. On top of it all, GBM will recur or regrow in most patients. Treatment of recurring a high-grade GBM that has recurred does not always improve survival compared with hospice care alone and deciding when to stop treating the cancer and entering into hospice care is frequently recommended when the patient is unlikely to live longer than six months.

GBM resilience and persistence is in stark contrast with the recent excitement in oncology where Immuno Oncology (IO) agents have shown promise to be curative by driving the immune cells to attack the tumors. Though extraordinarily effective against the growing number of tumors, IOs have been ineffective against GBM. GBM is generally considered immunologically "cold" with few immune effector cells needed for successful immunotherapy. The overexpression of transforming growth factor-beta 2 ("*TGF-β2*") is associated with poor prognosis of tumors and plays a key role in malignant progression of various tumors including GBM by inducing proliferation, metastasis, angiogenesis, and immunosuppression. Oncotelic Inc. is developing a novel TGF- β2 antisense agent OT-101 as immunotherapy against GBM.

G004 is a multinational, multicenter, open-label, randomized, active-controlled, parallel-group study in adult patients with either recurrent or refractory AA (WHO grade III) or recurrent or refractory GBM (WHO grade IV). There were 3 treatment groups: (1) 10 µM Trabedersen, (2) 80 µM Trabedersen, and (3) standard chemotherapy (mostly TMZ). Tumor control rate at 6 months was the primary endpoint. Response assessment included the tumor control rate and the overall response rate, which were assessed at 6, 12, and 14 months by central MRI reading. The tumor control rate was defined as the percentage of patients with either CR, PR, or SD and the overall response rate was defined as percentage of patients with either CR or PR. An independent blinded central MRI reading was performed to obtain a standardized response assessment for the efficacy analysis. Central reading was performed by 2 independent neuroradiologists with an additional adjudicator deciding in case of conflicting opinions.

All patients had previous tumor surgery, almost all patients had previous radiation therapy, and more than half of the patients had received previous chemotherapy. A total of 134 patients, 89 patients in the OT-101 test group and 45 patients in the standard chemotherapy control group were assessed. The findings of a randomized Phase II study further confirmed the feasibility of intratumoral application of OT101 via convection enhanced delivery (CED) for up to 6 months and showed that it results in early disease control at 6 months at a rate comparable to that achieved with temozolomide. OT101 was administered to 89 R/R high-grade glioma (HGG) (Anaplastic Astrocytoma/AA:27; Glioblastoma multiforme/GBM: 62) patients with an intratumoral catheter using a convection enhanced delivery (CED) system. 77 patients (Efficacy population; GBM: 51; AA: 26) received at least the intended minimum number of 4 OT101 treatment cycles. Response determinations were based on central review of MRI scans according to McDonald criteria. Standard statistical methods were applied for the analysis of data. Nineteen patients had a complete response (CR) or partial response (PR) following a slow but robust size reduction of their target lesions. In addition, 7 patients had stable disease (SD) lasting ≥6 months. For the combined group of 26 AA/GBM patients with favorable responses, the median PFS was >3 years and OS was >3.5 years (16, 17). Hence, OT101 administered intratumorally exhibits clinically meaningful single-agent activity and induces durable CR/PR/SD in R/R HGG patients. These results provided the proof of concept that targeting TGFβ2 with intratumoral OT101 therapy can result in a favorable survival outcome for R/R HGG patients (AA, WHO grade 3 and GBM, WHO Grade 4).

**OT-101: Pediatric DIPG**

DIPG, the second most common malignant pediatric brain tumor, has a dismal outcome with available standard treatment modalities. No significant therapeutic advances have been accomplished in the treatment of this poor prognosis brain tumor and the average overall survival has remained <1 year with a 2-year survival rate of <10%. In solid tumors, the expression level of the TGFβ has been identified as a significant contributor to disease progression and poor prognosis as well as resistance to standard therapy and metastasis. In particular, TGFβ has been implicated in treatment resistance to targeted therapeutics, chemotherapy as well as immune-oncology drugs. Importantly, TGFβ restrains anti-tumor immunity by restricting cytotoxic T-cell infiltration, recruiting regulatory T cells and inhibiting the maturation as well as function of natural killer ("*NK*") cells. Amplified activity of the TGFβ-Smad signaling pathway enhances tumor growth, invasion, as well as angiogenesis and has been implicated in the malignant phenotype and poor prognosis of high-grade gliomas in adults. Therefore, TGF-β has emerged as an attractive target for the therapeutic intervention of high-grade gliomas.

We recently performed a meta-analysis of TGFβ2 gene expression in primary tumor specimens from 29 pediatric DIPG patients in the publicly available archived datasets. Our data provided unprecedented evidence that TGFβ2 is expressed at high levels in pediatric DIPG. Three TGFβ2 probesets exhibited 1.8-2.5-fold increased levels of expression in DIPG patients. Our meta-analysis provided new evidence that TGFβ2 gene and its interactome are expressed in pediatric DIPG at significantly higher levels than in normal tissues or low-grade gliomas. Hence, TGFβ2 is an attractive molecular target for immunotherapy of pediatric DIPG.

The US FDA granted the Company a RPD for pediatric DIPG, which was transferred to the JV as part of the JV Agreement. The Company is likely to receive 50% of the value of the RPD, upto a maximum of $50 million, upon the RPD being sold to a third party should the JV decide to do so.

**OT-101 for Treatment of Advanced or Metastatic Cancers**

In March 2025, the Company announced successfully completing a Phase 1 clinical trial evaluating OT-101, in combination with IL-2 for advanced or metastatic solid tumors, on behalf of the JV. These results set the stage for new studies that combine OT-101, an antisense therapeutic targeting Transforming Growth Factor Beta 2 (TGFβ2), with checkpoint inhibitors ("CKIs") and recombinant IL-2 (aldesleukin) ("IL-2"). The Phase 1 trial (ClinicalTrials.gov ID: NCT04862767) investigated the safety and tolerability of OT-101 in combination with recombinant IL-2 in patients with advanced or metastatic solid tumors. The combination showed a tolerable safety profile at the planned dosing schedule, with no unexpected safety signals identified. Based on the favorable safety data, the JV, through the Company, plans to advance OT-101 plus IL-2 into further clinical studies, exploring synergies with CKIs such as PD-1 blockers.

**OT-101 for Treatments of Corona Viruses**

A Phase 2 study for COVID-19 was completed for OT-101 in South America, that can expand into a Phase 3 trial in the event there is a resurgence in COVID-19. Based on the final results of the trial, the trial was planned to be expanded into a Phase 3 trial; however with the impact of COVID-19 reducing in the past year, the Company will be re-evaluating this treatment for further development upon the occurrence or recurrence of the COVID-19 or any similar virus. We were conducting an observational study, looking at OT-101 and long COVID-19, in conjunction with the BARDA For more information on OT-101 for the treatment of Corona Viruses, refer to our 2023 Annual Report on Form 10-K filed with the SEC on April 12, 2024.

**Additional Nanoparticle Platform for Treatment of Various Cancers**

In late 2023, the JV initiated a plan to start evaluating various nanoparticles that could treat various cancers. In this regard, the JV identified a total of 4 compounds, in addition to OT-101, which had the potential of significant revenue generation for the JV. In the same year, the JV signed a lease agreement to set up a GMP manufacturing facility in San Diego, California. The main purpose of this facility was to initially commence an aggressive formulation development of newly planned nanoparticle platform ("*Nano Platform*"). The GMP manufacturing facility was initiated in January 2024. Upon the initiation of this facility by the JV, the JV commenced the development work on two of the four identified compounds, as well as other activities, in tandem with the development of OT-101.

The JV has since completed the formulation development of one of the products and is moving to complete the formulation development for the three additional products. The JV is also working on improved formulations for OT-101 with new nanoparticle sizes. The JV also has started clinical development for OT-101 for pancreatic cancer. Significant progress has been made in the development of the products and the JV anticipates to complete the formulation development work in 2025 and pushing to initiate clinical trials for the various compounds.

In late 2024, the GMP facility in San Diego ("*SD*"), California was issued a Drug Manufacturing License by the State of California Department of Public Health and Food and Drug Branch. Further, in late 2024, the JV identified a sixth candidate as a compound for development for the JV and has already started to work on the formulation development of that compound as well. A lot of manufacturing, including Phase 1 clinical trial materials, will be performed at the SD site.

In early 2025, we announced that we had entered into a strategic partnership with Shanghai Medicilon, Inc. ("*Medicilon*") to access its industry-leading rapid investigational new drug ("*IND*") development platform to support up to 20 IND projects. All six of our compounds the JV is developing are planned to be these INDs, and are focused on next-generation anticancer agents.

The JV anticipates that all these six anticancer agents have the potential to become significant growth contributors to the JV, which in turn would add substantial value to the Company, as the Company is a 45% owner of the JV. Preliminary valuation assessment place this in significant multiples of the original valuation of the JV, which could in turn mean a significant valuation for the Company. However, until there is a transaction to validate the increase in the valuation, we will continue to measure the value of the Company's investment in the JV as was originally assessed upon the formation of the JV.

**Artemisinin for Treatment of COVID-19**

Artemisinin derived from Chinese herb Artemisia annua L. (Sweet wormwood) has been used medicinally to treat fevers for centuries in China. Like other potential COVID-19 therapeutic agents such as Hydrochloroquine and Remdesivir, the efficacy of Artemisinin remains to be tested in well controlled and sufficiently powered clinical trials. With the impact of COVID-19 reducing in the past year, the Company will be re-evaluating this treatment for further development upon the occurrence or recurrence of the COVID-19 or any similar virus. For more information on Artemisinin for the treatment of COVID-19, refer to our Annual Report on Form 10-K filed with the SEC on April 14, 2023.

**Product Portfolio for Treatment of Various Cancers**

The JV is developing a range of products for the treatment of various cancers. One of the products is ready to enter into clinical trials and other drugs are in various stages of development. The JV has evaluated the development process, as well as the appropriate regulatory pathways, for the development of those drugs. The clinical pathway is also being designed for the other products. Individually, each of the drug products has the potential to be successful drugs.

**AI/Blockchain: PointR/EdgePoint**

PointR, an acquisition made in November of 2019, develops, and deploys high performance cluster computers and artificial intelligence ("*AI*") technologies for inference processing of a camera-grid that are interconnected to create 360-degree vision-grid to track men and materials indoors. The scope was expanded to include the entire life cycle of a drug: discovery, clinical trials, and manufacturing. In addition, AI is being targeted to provide support for clinical trials and pre-clinical research. The deployment of AI technology for data capture and insight extraction in real time in blocks which are chained into blockchain ledger records serving as immutable transactions for stakeholders such as regulatory agencies, caretakers, insurers, payers, and manufacturers. For more information on AI/Blockchain, refer to our 2002 Annual Report on Form 10-K filed with the SEC on April, 14, 2023.

**Manufacturing AI Deployment:**

Leveraging its partnerships with industry leaders, the AI team plans to combine its own AI technology with industry standard Blockchain to transform drug manufacturing. This will be advanced through our JV at an appropriate time, as our JV has acquired non-exclusive rights to the technology.

**Market**

Human labor costs represent the most expensive element in drug manufacturing. In the $70.0 billion CDMO (contract development manufacturing operations) industry, personnel costs of $30 billion are ripe for computer automation. Until now, computer technologies like MRP and ERP created more problems than resolved. The labor problem is compounded by the cost of personnel onboarding and turnover. It takes 6-9 months to train a quality control employee only to lose them to a competitor. At this time, this technology is being evaluated for being upgraded for future uses. This will be advanced through our JV at an appropriate time, as our JV has acquired non-exclusive rights to the technology. For more information on AI/Blockchain, refer to our 2002 Annual Report on Form 10-K filed with the SEC on April, 14, 2023.

**Go-to-Market:**

The Company's go-to-market plan is to execute a proof-of-concept project, possibly through a planned CDMO by the JV. As part of the JV Agreement, the JV has acquired a non-exclusive license for the AI platform developed by PointR/EdgePoint for implementation in a planned CDMO. At this time, this technology is being evaluated for being upgraded for future uses. For more information on AI/Blockchain, refer to our 2002 Annual Report on Form 10-K filed with the SEC on April, 14, 2023.

**Our Strategy and Development Plan**

We have been operating with significant capital constraints since the reverse merger between the Company and Oncotelic Inc, and for this time period we have been seeking to secure sufficient funding to continue our operations while we simultaneously seek to advance our all our investigational drugs for the treatment of cancer, coronaviruses, AI technology and more recently for PD, ED and FSD. Subject to our ability to secure additional capital, we would seek to further develop our product candidates. However, our inability to access capital historically has and may significantly impairs our ability to develop these compounds. If we are able to advance any or all of our drug candidates, we would seek to develop them till commercialization, however, there is no guarantee that we would be able to fully develop our products, obtain regulatory approvals and successfully commercialize them.

We continue to discuss collaboration opportunities with other biopharmaceutical companies, although to date have not secured any agreements with companies that are willing to purchase the products from us or license the development and commercialization rights. We intend to continue to seek a partner to acquire the marketing rights to our product candidates and to finance further clinical studies and will seek to complete a transaction if we are able to reach mutual agreement on terms. In this connection, in March 2022, the Company entered into a JV with Dragon to form GMP Bio. Both entities are affiliates of GMP. GMP Bio and the Company will work together to further the development of OT-101, wherein the Company would provide the technology and technical expertise and GMP Bio would fund the development expenses. In December 2023, the JV initiated a GMP manufacturing facility in San Diego, California to develop several drug candidates, which individually and collectively, could bring significant value to the JV as well as to the Company, which was approved in the fourth quarter of 2024.

In addition to entering into transaction that would provide funding for the further development of the rest of our product candidates, other elements of our development strategy would currently include:

● Initiating clinical trials of OT-101, and various other drugs, in various cancers through our JV: We have initiated one trial for OT-101, and we are evaluating conducting such trials in the US as well as other countries like China in conjunction with GMP Bio. We are looking to conduct such trials in combination with other drugs like checkpoint inhibitors. We have filed the protocols for some of the trials being planned and we hope to be able to get acceptance from the FDA and be able to initiate the trials shortly thereafter. In addition, the JV is also working on the initiation of clinical trials for the other drugs, in various stages of development and through various regulatory pathways.

● Initiating a clinical trial of CA4P in combination with an immuno-oncology agent or seek any collaboration for the development of CA4P.

● Continuing to evaluate OXi4503 in a clinical trial or seek any collaboration for the development of OXi4503.

● Ramping up the apomorphine development program and initiating noninferiority trial comparing AL-101 against subcutaneous apomorphine for the treatment of PD. We are also considering ramping up the apomorphine development programs for ED and FSD/HSDD. The development of these products is subject to the Company being able to raise funding to support the development activities or being able to partner with a third party to co-develop or even any type of a transaction that permits the Company to capitalize on the assets.

● The Company formed Pet2DAO, as a wholly owned subsidiary. Pet2DAO is a DAO technology company, integrating the strong governance of traditional corporations with the innovative DAO architecture looking to engage stakeholders, to build value through the DAO, while maintaining the rigor of traditional corporations, including governance, compliance, and accountability through a team of veterans in public companies with innovators in AI, blockchain and Web3. Pet2DAO will initially be looking to develop products for the animal health space.

**Regulatory Matters**

***Government Regulation and Product Approval***

Government authorities in the United States and other countries extensively regulate, among other things, the research, development, testing, manufacture, quality control, approval, labeling, packaging, storage, record-keeping, promotion, advertising, distribution, marketing and export and import of products such as those we are developing. Our drug candidates must be approved by the FDA through the New Drug Application ("*NDA*"), process before they may be legally marketed in the United States.

***U.S. Drug Development Process***

In the United States, the FDA regulates drugs under the Federal Food, Drug, and Cosmetic Act ("*FDCA*"), and implementing regulations. The process of obtaining regulatory approvals and the subsequent compliance with appropriate federal, state, local, and foreign statutes and regulations require the expenditure of substantial time and financial resources. Failure to comply with the applicable United States requirements at any time during the product development process, approval process or after approval, may subject an applicant to administrative or judicial sanctions. These sanctions could include the FDA's refusal to review or approve pending applications, withdrawal of an approval, a clinical hold, warning letters, product recalls, product seizures, total or partial suspension of production or distribution injunctions, fines, refusal of government contracts, restitution, disgorgement, or civil or criminal penalties. Any agency or judicial enforcement action could have a material adverse effect on us. The process required by the FDA before a drug may be marketed in the United States generally involves the following:

● completion of preclinical laboratory tests, animal studies and formulation studies according to Good Laboratory Practices ()"*GLP*") or other applicable regulations;

● submission to the FDA of an Investigational New Drug Application, or IND, which must be first approved by the FDA before human clinical trials may begin;

● performance of adequate and well-controlled human clinical trials according to Good Clinical Practices ()"*GCP*") to establish the safety and efficacy of the proposed drug for its intended use;

● submission to the FDA of an NDA;

● satisfactory completion of an FDA inspection of the manufacturing facility or facilities at which the drug is produced to assess compliance with current good manufacturing practice, or cGMP, to assure that the facilities, methods and controls are adequate to preserve the drug's identity, strength, quality and purity;

● satisfactory completion of FDA inspections of clinical sites and GLP toxicology studies; and

● FDA review and approval of the NDA.

The testing and approval process require substantial time, effort and financial resources, and we cannot be certain that any approvals for our product candidates will be granted on a timely basis, if at all.

Once a pharmaceutical candidate is identified for development, it enters the preclinical testing stage. Preclinical tests include laboratory evaluations of product chemistry, toxicity and formulation, as well as animal studies. An IND sponsor must submit the results of the preclinical tests, together with manufacturing information and analytical data, to the FDA as part of the IND. The sponsor will also include a protocol detailing, among other things, the objectives of the clinical trial, the parameters to be used in monitoring safety, and the effectiveness criteria to be evaluated, if the first phase lends itself to an efficacy evaluation. Preclinical testing continues even after the IND is submitted. The IND becomes effective 30 days after receipt by the FDA, unless the FDA, within the 30-day time period, places the clinical trial on a clinical hold. In such a case, the IND sponsor and the FDA must resolve any outstanding concerns before the clinical trial can begin. Clinical holds also may be imposed by the FDA at any time before or during clinical trials due to safety concerns or non-compliance.

All clinical trials must be conducted under the supervision of qualified investigators in accordance with GCP regulations. These regulations include the requirement that all research subjects provide informed consent. Further, an institutional review board, or IRB, must review and approve the plan for any clinical trial before it commences at any institution. An IRB considers, among other things, whether the risks to individuals participating in the trials are minimized and are reasonable in relation to anticipated benefits. The IRB also approves the information regarding the trial and the consent form that must be provided to each trial subject or his or her legal representative and must monitor the clinical trial until completed.

Each new clinical protocol must be submitted to the IND for FDA review, and to the IRBs for approval. Protocols detail, among other things, the objectives of the clinical trial, dosing procedures, subject selection and exclusion criteria, and the parameters to be used to monitor subject safety and efficacy in Phase 2 and 3 clinical trials.

Human clinical trials are typically conducted in three sequential phases that may overlap or be combined:

● Phase 1: The drug is initially introduced into human subjects and tested for safety, dosage tolerance, absorption, metabolism, distribution and excretion.

● Phase 2: Involves clinical trials in a limited patient population to identify possible adverse effects and safety risks, to evaluate preliminary efficacy of the product for specific targeted diseases and to determine dosage tolerance and optimal dosage.

● Phase 3: Clinical trials are undertaken to further evaluate dosage, clinical efficacy and safety in an expanded patient population. These studies are intended to establish the overall risk-benefit ratio of the product and provide, if appropriate, an adequate basis for product labeling.

Progress reports detailing the results of the clinical trials must be submitted at least annually to the FDA. IND Safety Reports must be submitted to the FDA, IRBs and the investigators for (a) any suspected adverse reaction that is both serious and unexpected; (b) any findings from epidemiological studies, pooled analysis of multiple trials, or clinical trials (other than those already reported in (a)); (c) any findings from animal or *in vitro* testing, whether or not conducted by the sponsor, that suggest a significant risk in humans exposed to the drug, such as reports of mutagenicity, teratogenicity, or carcinogenicity or reports of significant organ toxicity at or near the expected human exposure; and (d) any clinically important increase in the rate of a serious suspected adverse reaction over that listed in the protocol or investigator brochure. Phase 1, phase 2, and phase 3 testing may not be completed successfully within any specified period, if at all. The FDA or the sponsor may suspend a clinical trial at any time on various grounds, including a finding that the research subjects or patients are being exposed to an unacceptable health risk. Similarly, an IRB can suspend or terminate approval of a clinical trial at its institution if the clinical trial is not being conducted in accordance with the IRB's requirements or if the drug has been associated with unexpected serious harm to patients.

Concurrent with clinical trials, companies usually complete additional animal studies and must also develop additional information about the chemistry and physical characteristics of the drug and finalize a process for manufacturing the product in commercial quantities in accordance with cGMP requirements. The manufacturing process must be capable of consistently producing quality batches of the product candidate and, among other things, the manufacturer must develop methods for testing the identity, strength, quality and purity of the final drug. Additionally, appropriate packaging must be selected and tested and stability studies must be conducted to demonstrate that the product candidate does not undergo unacceptable deterioration over its shelf life.

Entities can also follow the 505(b)(2) pathway to regulatory approval, to further drug development in a more efficient and relatively cost-effective manner. The 505(b)(2) pathway is a regulatory route in the United States under the Federal Food, Drug, and Cosmetic Act (FDCA) that allows for the approval of new drugs that are similar to already approved products. It is often used for drugs that have been previously approved but require modifications, such as new indications, dosages, formulations, or routes of administration. The 505(b)(2) pathway provides a more efficient approval process compared to the traditional New Drug Application (NDA) pathway, as it allows drug developers to rely on existing data from previously approved drugs instead of conducting all new clinical trials. It strikes a balance between the full NDA process and the Abbreviated New Drug Application (ANDA) for generics.

Key Features of the 505(b)(2) Pathway includes (1) allowing applicants to use published literature or data from previous studies, like studies conducted by the original sponsor or from publicly available sources, to support their application, rather than having to repeat all of the clinical trials. This can include data from the reference product, studies published in scientific literature, or data from other regulatory agencies; (2) used for new formulations, like changing the dosage forms, routes of administration, new combinations of active ingredients. It may also be used for new indications for an existing drug; (3) allows for faster approval than a full NDA because it leverages existing data. It can be especially useful when the applicant needs to add new data or modify an already approved drug; and (4) while the application uses data from an existing product, the 505(b)(2) pathway is not for generic drugs. A 505(b)(2) submission often involves new clinical data or modifications that distinguish it from the original approved drug. The benefits of the 505(b)(2) pathway to drug approval include:

&nbsp;&nbsp;&nbsp;&nbsp;1. Reduced
 Clinical Trial Requirements: Instead of generating a complete set of new clinical trials, or a significantly reduced patient population
 for clinical trials, applicants can use existing data (like data from the original product or published studies), saving time and
 costs.

2. Innovation
 and Flexibility: It allows drug developers to bring innovative new formulations, combinations, or indications to market more quickly,
 which can help improve patient care.

3. Cost-Efficiency:
 It can reduce the cost of development for drug companies, as it may reduce the time and amount of clinical data they need to generate.

***U.S. FDA Review and Approval Processes***

The results of product development, preclinical studies and clinical trials, along with descriptions of the manufacturing process, analytical tests conducted on the chemistry of the drug, proposed labeling, and other relevant information are submitted to the FDA as part of an NDA requesting approval to market the product. The submission of an NDA is subject to the payment of user fees; a waiver of such fees may be obtained under certain limited circumstances, which may include orphan drug status and the first NDA application for a company.

In addition, under the Pediatric Research Equity Act, or PREA, an NDA or supplement to an NDA must contain data to assess the safety and effectiveness of the drug for the claimed indications in all relevant pediatric subpopulations and to support dosing and administration for each pediatric subpopulation for which the drug is safe and effective. The FDA may grant deferrals for submission of data or full or partial waivers. Unless otherwise required by regulation, PREA does not apply to any drug for an indication for which orphan designation has been granted.

The FDA reviews all NDAs submitted to ensure that they are sufficiently complete for substantive review before it accepts them for filing. The FDA may request additional information rather than accept an NDA for filing. In this event, the NDA must be resubmitted with the additional information. The resubmitted application also is subject to review before the FDA accepts it for filing. Once the submission is accepted for filing, the FDA begins an in-depth substantive review. The FDA also may refer the NDA to an advisory committee for review, evaluation and recommendation as to whether the application should be approved and under what conditions. The FDA is not bound by the recommendation of an advisory committee, but it generally follows such recommendations. The approval process is lengthy and difficult and the FDA may refuse to approve an NDA at its discretion or the FDA may require additional clinical or other data and information. Even if such additional data and information are submitted, the FDA may ultimately decide that the NDA does not satisfy its criteria for approval. Data obtained from clinical trials are not always conclusive, and the FDA may interpret data differently than we or others may interpret the same data. The FDA may issue a complete response letter, which may require additional clinical or other data or impose other conditions that must be met in order to obtain approval of the NDA. The FDA reviews an NDA to determine, among other things, whether a product is safe and effective for its intended use and whether its manufacturing is cGMP-compliant to assure and preserve the product's identity, strength, quality and purity. Before approving an NDA, the FDA will generally inspect the facility or facilities where the product is manufactured. The FDA will also generally inspect selected clinical sites that participated in the clinical studies and may inspect the testing facilities that performed the GLP toxicology studies cited in the NDA.

NDAs receive either standard or priority review. A drug representing a significant improvement in treatment, prevention or diagnosis of disease may receive priority review. In addition, products studied for their safety and effectiveness in treating serious or life-threatening illnesses and that provide meaningful therapeutic benefit over existing treatments may receive accelerated approval and may be approved on the basis of adequate and well-controlled clinical trials establishing that the drug product has an effect on a surrogate endpoint that is reasonably likely to predict clinical benefit or on the basis of an effect on a clinical endpoint other than survival or irreversible morbidity. As a condition of approval, the FDA may require that a sponsor of a drug receiving accelerated approval perform adequate and well-controlled post-marketing clinical trials. Priority review and accelerated approval do not change the standards for approval but may expedite the approval process.

If a product receives regulatory approval, the approval may be limited to specific diseases or patient subpopulations and dosages or the indications for use may otherwise be limited, which could restrict the commercial value of the product. In addition, approval by the FDA may include a requirement for phase 4 testing, which involves clinical trials designed to further assess a drug's safety and effectiveness, and the FDA may require testing and surveillance programs to monitor the safety of approved products which have been commercialized.

If an applicant decides to follow the 505(b)(2) pathway to regulatory approval for a drug, then the applicant is required to (1) request meetings with the FDA to discuss the appropriate use of existing data and the studies they need to conduct for approval (2) submits the 505(b)(2) application, which includes clinical trial data, published studies, and other relevant data (3) The FDA reviews the data to assess the safety, effectiveness, and quality of the drug, considering any new information provided (4) If the FDA is satisfied with the data, it will approve the new drug or formulation. If not, additional data or studies may be requested.

***Orphan Drug Designation***

Under the Orphan Drug Act, the FDA may grant orphan drug designation to a drug intended to treat a rare disease or condition, which is generally a disease or condition that affects fewer than 200,000 individuals in the United States. After the FDA grants orphan drug designation, the identity of the therapeutic agent and its potential orphan use are disclosed publicly by the FDA. Orphan drug designation does not convey any advantage in or shorten the duration of the regulatory review and approval process.

If a product that has orphan drug designation subsequently receives the first FDA approval for the disease for which it has such designation, the product is entitled to orphan product exclusivity, which means that the FDA may not approve any other applications to market the same drug for the same indication for seven years, except in very limited circumstances.

In the European Union and Japan, orphan drug exclusivity regulations provide for 10 years of market exclusivity.

CA4P has been awarded orphan drug status by the FDA for the treatment of anaplastic, medullary, Stage IV papillary and Stage IV follicular thyroid cancers, ovarian cancer, neuroendocrine tumors and glioma. OXi4503 has been awarded orphan drug status by the FDA for the treatment of acute myelogenous leukemia. CA4P has been awarded orphan drug status by the FDA for the treatment of pancreatic cancer, melanoma, and glioblastoma.

CA4P has also been awarded orphan drug status by the European Commission in the European Union for the treatment of anaplastic thyroid cancer, ovarian cancer and neuroendocrine tumors. OXi4503 has been awarded orphan drug status by the European Commission in the European Union for the treatment of acute myelogenous leukemia. OT-101 has been awarded orphan drug status by European Commission in the European Union for the treatment of pancreatic cancer, melanoma, and glioblastoma.

***Rare Pediatric Disease Designation***

The FDA grants rare pediatric disease designation for diseases with serious or life-threatening manifestations that primarily affect people aged from birth to 18 years, and that affect fewer than 200,000 people in the U.S. Under the FDA's Rare Pediatric Disease Priority Review Voucher program, a sponsor who receives an approval of a new drug application or biologics license application for a product for the prevention or treatment of a rare pediatric disease may be eligible for a voucher, which can be redeemed to obtain priority review for any subsequent marketing application and may be sold or transferred.

The FDA granted Rare Pediatric Disease Designation for OT101/Trabedersen for the treatment of DIPG as a drug for a rare pediatric disease.

The FDA granted Rare Pediatric Disease Designation for CA4P/ Fosbretabulin tromethamine for the treatment of stage IIB–IV melanoma due to genetic mutations that disproportionately affect pediatric patients as a drug.

The FDA granted Rare Pediatric Disease Designation for Oxi4503 for the treatment of AML as a drug for a rare pediatric disease.

***Expedited Review and Approval***

The FDA has various programs, including Fast Track, priority review, accelerated approval and breakthrough therapy, which are intended to expedite or simplify the process for reviewing drugs, and/or provide for approval on the basis of surrogate endpoints. Even if a drug qualifies for one or more of these programs, the FDA may subsequently decide the drug no longer meets the conditions for qualification or the FDA may not shorten the review or approval time period. Generally, drugs that may be eligible for these programs are those for serious or life-threatening conditions, those with the potential to address unmet medical needs, and those that offer meaningful benefits over existing treatments. Fast Track designation applies to the combination of the product and the specific indication for which it is being studied. Although Fast Track and priority review do not affect the standards for approval, the FDA will attempt to facilitate early and frequent meetings with a sponsor of a Fast-Track designated drug and expedite review of the application for a drug designated for priority review. Drugs that receive an accelerated approval may be approved on the basis of adequate and well-controlled clinical trials establishing that the drug product has an effect on a surrogate endpoint that is reasonably likely to predict clinical benefit or on the basis of an effect on a clinical endpoint other than survival or irreversible morbidity. As a condition of approval, the FDA may require that a sponsor of a drug receiving accelerated approval perform post-marketing clinical trials.

OXi4503 has been awarded Fast Track designation for the treatment of AML.

***Foreign Regulation***

In addition to regulations in the United States, we are subject to a variety of foreign regulations governing clinical trials and if any of our product candidates are approved, we will be subject to additional regulations regarding commercial sales and distribution. Whether or not we obtain FDA approval to test a product candidate in the United States, we must obtain approval by the comparable regulatory authorities of foreign countries before we can commence testing any product candidate in those countries. Likewise, whether or not we obtain FDA approval to market a product, we must obtain approval by the comparable regulatory authorities of foreign countries before we can commence marketing of any product candidate in those countries. The approval process varies from country to country and the time may be longer or shorter than that required for FDA approval. The requirements governing the conduct of clinical trials, product licensing, pricing and reimbursement vary greatly from country to country.

Under European Union regulatory systems, a company may submit marketing authorization applications, or MAAs, either under a centralized or decentralized procedure. The centralized procedure, which is compulsory for medicines produced by biotechnology or those medicines intended to treat AIDS, cancer, neurodegenerative disorders or diabetes and optional for those medicines which are highly innovative, provides for the grant of a single marketing authorization that is valid for all European Union member states. The decentralized procedure provides for mutual recognition of national approval decisions. Under this procedure, the holder of a national marketing authorization may submit an application to the remaining member states. Within 90 days of receiving the applications and assessments report, each member state must decide whether to recognize approval. If a member state does not recognize the marketing authorization, the disputed points are eventually referred to the European Commission, whose decision is binding on all member states.

As in the United States, the European Medicines Agency, or EMA, may grant orphan drug status for specific indications if the request is made before an MAA is submitted. The EMA considers an orphan medicinal product to be one that affects less than five of every 10,000 people in the European Union. A company whose application for orphan drug designation in the European Union is approved is eligible to receive, among other benefits, regulatory assistance in preparing the marketing application, protocol assistance and reduced application fees. Orphan drugs in the European Union receive up to ten years of market exclusivity for the approved indication.

***Reimbursement***

Sales of any of our product candidates, if approved, will depend, in part, on the extent to which the costs of the products will be covered by third-party payors, including government health programs such as Medicare and Medicaid, commercial health insurers and managed care organizations. These third-party payors are increasingly challenging the prices charged for health care products and services. The U.S. government, state legislatures and foreign governments have shown significant interest in implementing cost-containment programs, including price controls, restrictions on reimbursement and requirements for substitution of generic products. Adoption or application of price controls and cost-containment measures could limit our revenue. If third-party payors do not consider our products to be cost-effective, they may not pay for our products even if we receive approval, or their level of payment may not be sufficient to allow us to sell our products on a profitable basis.

The Medicare Prescription Drug, Improvement, and Modernization Act of 2003, or the MMA, imposes requirements for the distribution and pricing of prescription drugs for Medicare beneficiaries. Under Part D (the Medicare prescription drug benefit), Medicare beneficiaries may enroll in prescription drug plans offered by private entities that provide coverage of outpatient prescription drugs not covered under Medicare Part B. Part D prescription drug plan sponsors are not required to pay for all covered Part D drugs. Each drug plan can develop its own drug formulary that identifies which drugs it will cover and at what tier or level. Federal regulations require Part D prescription drug formularies to include drugs within each therapeutic category and class of covered Part D drugs, although not necessarily all the drugs in each category or class.

In general, government payment for some of the costs of prescription drugs may increase demand for products for which we receive marketing approval. However, any negotiated prices for our products covered by a Part D prescription drug plan will likely be lower than the prices we might otherwise obtain. Moreover, while the MMA applies only to drug benefits for Medicare beneficiaries, private payors often follow Medicare coverage policy and payment limitations in setting their own payment rates. Any reduction in payment that results from the MMA or other Medicare regulations may result in a similar reduction in payments from non-governmental payors.

The Patient Protection and Affordable Care Act and the Health Care and Education Affordability Reconciliation Act of 2010 (collectively, the "*Affordable Care Act*" or "*ACA*") mandated prescription drug coverage as one of ten essential health benefits that most health plans must offer, requiring coverage of at least one drug in every category and class. The ACA increased in the number of individuals covered by insurance and as a result commercial insurers and government programs have increased their emphasis on cost controls to reduce overall spending. A number of federal government leaders have expressed their intentions to repeal and replace the ACA. If full or partial repeal is enacted, many if not all of the provisions of the ACA may no longer apply to prescription drugs. As a result, we expect that there will continue to be uncertainty regarding drug product pricing, reimbursement and other factors impacting the revenue we may receive if our product candidates are ultimately approved, which could have a material adverse effect on our business, financial condition and results of operations.

In addition, in some foreign countries, the proposed pricing for a drug must be approved before it may be lawfully marketed. The requirements governing drug pricing vary widely from country to country. For example, the European Union provides options for its member states to restrict the range of medicinal products for which their national health insurance systems provide reimbursement and to control the prices of medicinal products for human use. A member state may approve a specific price for the medicinal product or it may instead adopt a system of direct or indirect controls on the profitability of the company placing the medicinal product on the market. There can be no assurance that any country that has price controls or reimbursement limitations for pharmaceutical products will allow favorable reimbursement and pricing arrangements for any of our products. Historically, products launched in the European Union do not follow price structures of the United States and tend to be significantly lower.

**Patents and Proprietary Rights**

We actively seek to protect the proprietary technology that we consider important to our business, including chemical species, compositions and forms, their methods of use and processes for their manufacture, as well as modified forms of naturally-expressed receptors, in the United States and other jurisdictions internationally that we consider key pharmaceutical markets. We also rely upon trade secrets and contracts to protect our proprietary information.

As of September 30, 2025, we were the exclusive licensee, sole assignee or co-assignee of five granted U.S. patents, two pending U.S. patent application, and granted patents and/or pending applications in several other major markets, including the European Union, Canada and Japan. Our policy is to file U.S. and foreign patent applications to protect technology, inventions and improvements to inventions that are commercially important to the development of our business. There can be no assurance that any of these patent applications will result in the grant of a patent either in the United States or elsewhere, or that any patents granted will be valid and enforceable or will provide a competitive advantage or will afford protection against competitors with similar technologies. We also intend to rely upon trade secret rights to protect other technologies that may be used to discover and validate targets and that may be used to identify and develop novel drugs. We seek protection, in part, through confidentiality and proprietary information agreements.

We consider the following U.S. patents and applications owned by or exclusively licensed to us to be particularly important to the protection of our most advanced product candidates.

---

| | | |
|:---|:---|:---|
| **Product Candidate** | **Patent Scope** | **Patent Expiration** |
| CA4P | Use of VDAs to Enhance Immunomodulating Therapies Against Tumors\*\* | August 2036 |
| OT-101 – through our JV | Combination of A Chemotherapeutic Agent and An Inhibitor of the TGF-β System | July 2030 |
|  | Combination Therapy for Treatment of Pancreatic Cancer | February 2036 |
|  | Compositions and Methods for Treating Cancer | February 2036 |

---

In addition to these patents, for some of our product candidates, we have patents and/or applications that cover a particular form or composition, use for a particular indication, use as part of combination therapy or method of preparation or use, as well as other pending patent applications. These issued patents, including any patents that issue from pending applications, could provide additional or a longer period of protection. We also have patent applications pending that seek equivalent or substantially comparable protection for our product candidates in jurisdictions internationally that we consider key pharmaceutical markets.

The patent expiration dates referenced above do not reflect any potential patent term extension that we may receive under the federal Drug Price Competition and Patent Term Restoration Act of 1984, known as the Hatch-Waxman Act. The Hatch-Waxman Act generally permits a patent extension term of up to five years as compensation for patent term lost during the FDA regulatory review process. Patent extension cannot extend the remaining term of a patent beyond a total of 14 years. The patent term restoration period is generally one-half of the time between the effective date of an investigational new drug application, or IND, and the submission date of a new drug application, or NDA, plus the time between the submission date and approval date of an NDA. Only one patent applicable to an approved drug is eligible for the extension, and the extension must be applied for prior to expiration of the patent. The United States Patent and Trademark Office, in consultation with the FDA, reviews and approves applications for patent term extension.

As previously noted, the FDA and European Union have granted CA4P and OXi4503 orphan drug status for certain indications. We are also pursuing, and may continue to in the future to pursue, orphan drug status for other product candidates and indications. Our ability to obtain and maintain the exclusivity for our products and product candidates by virtue of their orphan drug status is an important part of our intellectual property strategy. Also as previously noted, we emphasizing on Rare Pediatric Designation to leverage on the regulatory exclusivity and voucher program associated with these designations.

**Competition**

The industry in which we are engaged is characterized by rapidly evolving technology and intense competition. Our competitors include, among others, major pharmaceutical, biopharmaceutical and biotechnology companies, nearly all of which have financial, technical and marketing resources significantly greater than ours. In addition, many of the small companies in our industry have also formed collaborative relationships with large, established companies to support research, development and commercialization of products that may be competitive with ours. Academic institutions, governmental agencies and other public and private research organizations are also conducting research activities and patenting new technologies in our line of business and any of these entities may commercialize products that may be competitive with ours.

We expect that, if any of our products gain regulatory approval for sale, they will compete primarily on the basis of product efficacy, safety, patient convenience, reliability, price and patent protection. Our competitive position will also depend on our ability to attract and retain qualified scientific and other personnel, develop effective proprietary products and implement joint ventures or other alliances with large pharmaceutical companies in order to jointly market and manufacture our products.

**Employees**

We had twenty-six full-time employees, four part-time employees and 10 consultants as of December 31, 2024; and all the employees and consultants were compensated by the JV during the years ended December 31, 2024 and 2023, respectively. We rely on external consultants or outsource nearly all our research, development, preclinical testing and clinical trial activity, although we maintain managerial and quality control over our clinical trials. We also rely on external consultants for various administrative tasks that are required for a public company. We expect to continue to rely on external service providers and to maintain a small number of executives and other employees. Our relations with our employees are good and we do not have any unions for the Company.

**Costs of Compliance With Environmental Regulations**

We have not incurred any costs associated with compliance with environmental regulations, nor do we anticipate any future costs associated with environmental compliance; however, no assurances can be given that we will not incur such costs in the future.

**DESCRIPTION OF PROPERTY**

Our office is located in Agoura Hills, California, where we lease about 2,000 square feet of general office space. The lease for this office is on a month-to-month basis. We consider our office space to be adequate for our current needs. We believe that other suitable office space would be available if we move to a different location upon the expiration of our current lease.

**LEGAL PROCEEDINGS**

From time to time, we may become involved in legal proceedings arising in the ordinary course of our business. Historically, the outcome of all such legal proceedings has not, in the aggregate, had a material adverse effect on our business, financial condition, results of operations or liquidity. Other than as set forth below, there are no additional pending or threatened legal proceedings at this time.

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*Note Regarding Forward-Looking Statements*

This Quarterly Report on Form 10-Q (the "*Quarterly Report*" or "*Report*") includes a number of forward-looking statements that reflect management's current views with respect to future events and financial performance. Forward-looking statements are projections in respect of future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these terms or other comparable terminology. Those statements include statements regarding the intent, belief or current expectations of us and members of our management team, as well as the assumptions on which such statements are based.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, or performance, especially the forward-looking statements enumerated below. These statements are only predictions and involve known and unknown risks, uncertainties and other factors. Some of these risks are included in the section entitled "Risk Factors" set forth in this Quarterly Report and in other reports that we file with the SEC. The occurrence of any of these risks, or others of which we are currently unaware, may cause our company's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. These risks include, by way of example and without limitation:

● our ability to successfully commercialize our products and services on a large enough scale to generate profitable operations;

● our ability to maintain and develop relationships with customers and suppliers;

● our ability to successfully integrate acquired businesses or new products, or to realize anticipated synergies in connection with acquisitions of businesses or products;

● expectations concerning our ability to raise additional funding and to continue as a going concern;

● our ability to successfully implement our business plan;

● GMP Bio anticipates its current fair valuation to be approximately $1.7 billion, however, the Company cannot predict or estimate what the fair value may be;

● our ability to avoid, or to adequately address any intellectual property claims brought by third parties; and

● the anticipated impact of any changes in industry regulation.

● building and the success of our nanoparticle platform and the related success of launching the platform

● the success of the launch of a company with a DAO infrastructure, the success of the entity and the plans surrounding the pet and animal health, the ability for the Company to register the tokens of Pet2Dao, the actual filing of a registration statement and approval of the tokens as registrable securities with the SEC through a registration statement, the ability of the tokens to be tradable or any value such tokens may have if they become tradable.

Readers are urged to carefully review and consider the various disclosures made by us in this report and in our other reports filed with the SEC. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in the future operating results over time except as required by law. We believe that our assumptions are based upon reasonable data derived from and known about our business and operations. No assurances are made that actual results of operations or the results of our future activities will not differ materially from our assumptions.

*Corporate History*

Oncotelic Therapeutics, Inc. ("*Oncotelic*"), was formed in the State of New York in 1988 as OXiGENE, Inc., was reincorporated in the State of Delaware in 1992, and changed its name to Mateon Therapeutics, Inc. in 2016, and Oncotelic Therapeutics, Inc. in November 2020. Oncotelic conducts business activities through Oncotelic and its wholly-owned subsidiaries, Oncotelic, Inc., a Delaware corporation, PointR Data, Inc. ("*PointR*"), a Delaware corporation, Pet2DAO Inc., a Delaware corporation and EdgePoint AI, Inc. ("*Edgepoint"*), a Delaware Corporation for which there are non-controlling interests, (Oncotelic, Oncotelic Inc., PointR, Pet2DAO and Edgepoint are collectively called the "*Company*" or "*We*"). The Company completed a reverse merger with Oncotelic Inc in April 2019, a merger with PointR in November 2019 and formed a subsidiary Edgepoint in February 2020. For more information on these mergers, 2024Annual Report on Form 10-K filed with the SEC on April 15, 2025.

*Company Overview*

The Company is a clinical stage biopharmaceutical company developing drugs for the treatment of cancer. The Company's proprietary product candidates have shown promising clinical activity in phase 2 trials for the treatment of gliomas and pancreatic cancers. The Company aims to translate its unique insights, which span more than three decades of original work using RNA therapeutics, into the deployment of antisense as a RNA therapeutic for diseases which are caused by TGF-β overexpression, starting with cancer and expanding to Duchenne Muscular Dystrophy and others. OT-101, the Company's lead product candidate, is being developed as a broad-spectrum anti-cancer drug that can also be used in combination with other standard cancer therapies to establish an effective multi-modality treatment strategy for difficult-to-treat cancers.

Since April 2022, the Company entered has conducted the vast majority of its development efforts for OT-101 through a joint venture (the "*JV*"), with Dragon Overseas Capital ("*Dragon*"). In connection with the formation of the JV, the Company contributed license rights OT-101 for both U.S. and the rest of the world, in exchange for a 45% equity interest in GMP Biotechnology Limited (*"GMP Bio"*), and Dragon agreed to provide approximately $27 million of research and development funding in exchange for a 55% ownership stake in GMP Bio. The Company accounts for its holdings in GMP Bio as an equity investment under the fair value option. Accordingly, the Company accounts for only its investment in GMP Bio, and the income and expenses of the JV are not consolidated in the Company's financial statements.

Under the fair value option, the Company periodically conducts a fair value assessment and records a change in the value when circumstances warrant, such as in connection with a third-party financing event, or other significant event that suggests reassessing the value of investment in GMP Bio is warranted. As of September 30, 2025, the Company assessed the fair value of its investment in GMP Bio and determined that no change in the fair value was required at that time. However, as previously announced, GMP Bio is progressing with its strategic and operational plans, which include efforts to secure third-party financing and a possible initial public offering in Hong Kong during 2026. Based on current information from GMP Bio, the potential valuation for GMP Bio in any third-party financing or initial public offering could be significantly in excess of $2 billion. While GMP Bio continues to advance its research and development activities, no third-party transactions have transpired which would establish the basis for a fair value reassessment. If a financing or other transaction is completed at such a valuation, of if the JV goes into an initial public offering as is planned in the Hong Kong Stock Exchange, the Company will reassess and report the increase in fair value of its investment in GMP Bio at that time.

The Company has retained, outside of the JV, and is independently planning to develop OT-101 for certain animal health indications and is contemplating using crypto currencies for that platform. The Company also acquired Apomorphine for Parkinson's Disease, erectile dysfunction and female sexual dysfunction. In addition, the Company is evaluating the further development of its product candidates OXi4503 as a treatment for acute myeloid leukemia and myelodysplastic syndromes and CA4P in combination with a checkpoint inhibitor for the treatment of advanced metastatic melanoma.

*Recent Joint Venture Developments*

The JV's principal activities centered on the commercialization of OT-101 for certain oncology indications in the US and looking at other territories as well. In March 2025, the JV successfully completed a Phase 1 clinical trial evaluating OT-101, in combination with IL-2 for advanced or metastatic solid tumors. These results set the stage for new studies that combine OT-101, an antisense therapeutic targeting Transforming Growth Factor Beta 2 (TGFβ2), with checkpoint inhibitors ("CKIs") and recombinant IL-2 (aldesleukin) ("IL-2"). The Phase 1 trial (ClinicalTrials.gov ID: NCT04862767) investigated the safety and tolerability of OT-101 in combination with recombinant IL-2 in patients with advanced or metastatic solid tumors. The combination showed a tolerable safety profile at the planned dosing schedule, with no unexpected safety signals identified. Based on the favorable safety data, the JV plans to advance OT-101 plus IL-2 into further clinical studies, exploring synergies with CKIs such as PD-1 blockers. The JV is also sponsoring investigator-initiated studies for OT-101 for other oncology indications including lung cancer (non small cell lung cancer- NSCLC- and ugh Mesothelioma.- MPM) and has started clinical development for OT-101 for pancreatic cancer. Over ten patent family has been filed exploiting the central role of TGFB2 as prognostic indicator for cancer survival and one patent family for the intracranial delivery device of brain cancer with issued patent in China and Germany.

In addition to OT-101, the JV as developed a nanoparticle platform ("*Nano Platform*") that entails the formulation of products in new nanoparticle sizes. The JV anticipates that the Nano Platform may offer superior platform for the absorption of water insoluble drugs across a broad spectrum of cancers. The JV is working on improved formulations for OT-101 with new nanoparticle sizes. In addition, the JV has identified five additional compounds as product candidates on the Nano Platform, including the following:

● The JV has completed the formulation development of the first product--everolimus for injection. The JV has initiated a global clinical trial for that product, including open patient enrollment in Australia. The JV hopes to complete the Phase 1 trial and to move to a Phase 3 noninferiority trial against Affinitor. Phase 3 trial is slated to initiate within one year with completion and submission for marketing approval no less than three years thereafter.

● The JV is developing palbociclib for injection on the Nano Platform and expects to file the investigational new drug ()"*IND*") and to initiate a Phase 1 trial in late 2025 or early 2026.

● The JV is developing docetaxel and paclitaxel for injection on the Nano Platform and expects to file the IND to initiate a Phase 1 trial for this product candidate in late 2025 or early 2026. These are expected to go through the 505(b)2 bioequivalence pathway which should result in rapid entrance into the market

The Deciparticle<sup>TM</sup> platform has proven robust and is being expand to other drug candidates through partnering. The platform is protected by more than 15 patent families covering chemical composition, manufacturing, and method of use.

The JV built a GMP manufacturing facility in San Diego, California (the "*San Diego Facility*"). In late 2024, the San Diego Facility was issued a Drug Manufacturing License by the State of California Department of Public Health and Food and Drug Branch. A significant portion of the manufacturing for the Nano Platform, including the development of Phase I clinical trial materials, is conducted at the San Diego Facility. Evaluation of larger commercial scale manufacturing is ongoing.

In early 2025, the Company entered into a strategic partnership with Shanghai Medicilon, Inc. ("*Medicilon*") to access its industry-leading rapid IND development platform to support up to 20 IND projects, including INDs developed by the JV. All six of the compounds that the JV is developing are planned to be initiated under these INDs, and are focused on next-generation anticancer agents.

The JV was initially funded by equity contributions from Dragon under the terms of the joint venture agreement. That equity funding commitment has been fully paid as of September 30, 2025. On May 31, 2025, GMP Bio and Golden Mountain Partners, an affiliate of Dragon, entered into a note purchase agreement and promissory note pursuant to which Golden Mountain Partners agreed to loan funds to the JV sufficient to meet its operating expenses for 2025. The loans are made as monthly advances, bear interest at the Wall Street Journal "Prime" rate, and matures on December 31, 2026. Amounts due under the promissory note are convertible into equity of the JV at the election of Golden Mountain Partner at a price equal to 80% of the price for shares issued in connection with an equity financing of $20 million or more, or otherwise at a mutually agreed price.

The JV is planning to conduct an initial public offering on the Hong Kong Stock Exchange in the late 2026 time frame. In connection with the planned public offering, the JV venture has retained an investment banker and Deloitte LLP as its independent accounting firm to audit the financial statements that would be included in the public filings. The JV also hired a valuation consultant to provide guidance on the potential pricing for the planned IPO. That initial valuation, and the JV's current plans, contemplate a public offering with a total enterprise valuation significantly higher than 1B. As of September 30, 2025, the Company owns 45% of GMP Bio. During the quarter, GMP Bio completed an independent third-party valuation by Frost & Sullivan (Hong Kong), which preliminarily estimated the potential value of the drug pipeline under development at approximately $1.7 billion..

The JV's planned public offering is subject to a number of risks and uncertainties, some involving the JV's ability to executed on its business plan, but others outside the JV's control including market forces. Consequently there is no assurance that the planned Hong Kong public offering will take place in late 2026, or at all, and there is no assurance as to what enterprise value would be ascribed to the JV at that time.

Based on the JV's advances, including the development of the Nano Platform and pipeline and the planned Hong Kong public offering the Company believes that its ownership interest in the JV may be significantly higher than the reported value on its financial statements, which is based on the valuation at the time of its initial investment in the JV in 2022. The Company intends to re-evaluate the carrying value of the minority interest in the coming quarter.

*Recent Financing Transactions*

In July, 2025, the Company entered into a securities purchase agreement with Mast Hill Fund LP ("*Mast Hill*"), under which the Company issued one convertible note in the aggregate principal amount of $560,000 to Mast Hill ("*2025 Mast Note*"). The 2025 Mast Hill Note has an original issue discount of 10%, carries an interest rate of 10% per annum and matures on the earlier of July 31, 2026, subject to acceleration in an event of default. Mast Hill has the right, at any time, to convert all or any part of the outstanding and unpaid balance under of the 2025 Mast Hill Note into shares of Company's common stock at a conversion price of $0.07 per share. In connection with the issuance of the 2025 Mast Note, the Company issued Mast Hill 2,000,000 warrants to purchase common stock at a strike price of $0.15 up to five years after issuance. The Company also issued to Mast Hill 2,250,000 shares of the Company's common stock as a commitment fee. For more information on the 2025 Mast Note, refer to Note 5 of the Notes to the Consolidated Financial Statements included in this report.

On August 1, 2025, the Company entered into an Equity Purchase Agreement (the "*Mast EPA*") and Registration Rights Agreement with Mast Hill. Under the terms of the Mast EPA, Mast Hill agreed to purchase from the Company up to $25,000,000 of shares of the Company's Common stock upon effectiveness of a registration statement on Form S-1 filed with the U.S. Securities and Exchange Commission and subject to certain limitations and conditions set forth in the Mast EPA. The Registration Rights Agreement provided that the Company would (i) file the registration statement with the SEC by October 1, 2025: and (ii) use its best efforts to have the registration statement declared effective by the SEC at the earliest possible date (in any event, within 90 after days after the execution date of the definitive agreements). The Company intends to file the registration statement on Form S-1 with the SEC as soon as possible. In connection with the Equity Purchase Agreement, the Company issued 3,350,000 warrants to Mast Hill and recorded a fair value deferred finance cost of approximately $122,000.

Following effectiveness of the registration statement, and subject to certain limitations and conditions set forth in the Mast EPA, the Company shall have the discretion to deliver put notices to the Investor and the Investor will be obligated to purchase shares of the Company's common stock based on the investment amount specified in each put notice. The minimum amount that the Company shall be entitled to put to the Investor in each put notice is $5,000 and the maximum amount is up to the lesser of $0.5 million or twenty percent (20%) of the average daily trading value of the Company's Common stock. Pursuant to the Equity Purchase Agreement, the Mast Hill will not be permitted to purchase, and the Company may not put shares of the Company's common stock to the Investor that would result in the Investor's beneficial ownership of the Company's outstanding common stock exceeding 4.99%. The price of each put share shall be equal to the lesser of: (i) 97% of the lowest VWAP during the Valuation Period or (ii) 102% of the lowest traded price during the Valuation Period (provided, however, that if a minimum price is specified and the common stock trades below the minimum price, then the purchase price under clause (ii) instead becomes equal to the minimum price specified in the relevant Put Notice). If a minimum price is specified by the Company in a Put Notice and the common stock trades at a price per share that is less than the minimum price during the Valuation Period then the number of shares with respect to such Put Notice shall automatically be reduced to the number of shares sold by the Selling Stockholder prior to the first time that the common stock traded below the minimum price during the Valuation Period.

*Jefferson Capital Ventures, LLC and Valor Nation, Inc Independent Contractor Agreements*

In August, 2025, the entered into independent contractor agreements with each of Jefferson Capital Ventures, LLC ("Jefferson") and Valor Nation, Inc. ("Valor") to provide consulting and advisory services including strategic planning meetings, coordination non-legal support for SEC compliance, balance sheet and income statement optimization strategies, shareholder and investor communication planning, liaison with investment bankers, analysts, and institutional investors, operational efficiency and cost-saving recommendations and ancillary strategic services not requiring a license, corporate planning, operations and capital markets advisory services not requiring licenses. Such services shall be provided by Jefferson and Valor for a period of 18 months, unless terminated earlier by either party under certain predefined conditions. Jefferson has agreed to be compensated $20,000 per month in cash and to be issued 20,320,930 restricted shares of the Company's common stock and Valor has agreed to be compensated with 4,064,586 shares of common stock. While the shares of common stock will be issued to Jefferson they are subject to forfeiture, and Jefferson will earn the common stock only upon the achievement of milestones. The milestones include (a) the Company's market capitalization exceeding $100 million on any single trading day's close, (b) the cumulative increase of at least $10 million in shareholder equity from the start of engagement, and (c) the successful uplisting to a U.S. national exchange (e.g., Nasdaq or NYSE American) with at least one full day of trading. On the accomplishment of each milestone an amount equal to the greater of 6,774,300 or 1.663% of the Company's fully diluted outstanding shares shall vest. For more information on the Jefferson and Valor ICAs, refer to our Current Report on Form 8-K filed with the SEC on August 12, 2025.

*Short-term loans*

As of January 1, 2024, approximately $1.5 million was outstanding and payable to Autotelic. During the year ended December 31, 2024 Autotelic Inc. provided additional short-term funding of approximately $0.6 million to the Company. During the nine months ended September 30, 2025 Autotelic Inc. provided additional short-term funding of $435,000 to the Company. As such, approximately $2.5 million was outstanding and payable to Autotelic at September 30, 2025.

As of January 1, 2024, approximately $35,000 was outstanding and payable to the Company's CFO. During the year ended December 31, 2024, the CFO provided additional short-term funding of $41,000. In the nine months ended September 30, 2025, the CFO provided additional short-term funding of $10,000 to the Company. As such, approximately $86,000 was outstanding and payable to the Company's CFO at September 30, 2025. In December 2023, the Company received $50,000 from the Company's CEO. As such, $50,000 was outstanding to the Company's CEO at September 30, 2025. As of September 30, 2025, approximately $210,000 was outstanding as short-term advances from certain bridge investors.

*Equity Purchase Agreement (Peak One)*

In May 2021, the Company entered into an Equity Purchase Agreement (the "*EPL*") and Registration Rights Agreement (the "*Registration Rights Agreement*") with Peak One Opportunity Fund, L.P. ("*Peak One*"), pursuant to which the Company shall have the right, but not the obligation, to direct Peak One to purchase up to $10.0 million (the "*Maximum Commitment Amount*") in shares of the common stock, par value $0.01 per share in multiple tranches. The Company filed a post-effective amendment for EPL on April 15, 2025 with the SEC and the SEC has made the post-effective amendment effective on April 21, 2025. The Company filed a prospectus under rule 424b3 with the SEC on April 29, 2025. For more information on the EPL, refer to Note 10 of the Notes to the Unaudited Consolidated Financial Statements.

*Mosaic ImmunoEngineering, Inc. Term Sheet*

In April 2024, the Company entered into a binding term sheet (the "*Term Sheet*") with Mosaic ImmunoEngineering, Inc. ("*Mosaic*"). For more information on the Term Sheet, refer to the Current Report on Form 8-K filed with the SEC on April 29, 2024. In August 2024, Mosaic and the Company mutually agreed to extend the date of the Term Sheet to expire at the earlier of (1) the signing of definitive agreements or (2) December 31, 2024. Mosaic and the Company further agreed to extend the Term Sheet to expire at the earlier of (1) the signing of definitive agreements or (2) June 30, 2025. Both parties are in discussions to extend the date to the end of 2025 to allow for both Companies to complete due diligence as well as agree and finalize the definitive agreements.

**<u>Critical Accounting Policies and Significant Judgments and Estimates</u>**

The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported revenues and expense during the reporting periods. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances at the time we make such estimates. Actual results and outcomes may differ materially from our estimates, judgments and assumptions. We periodically review our estimates in light of changes in circumstances, facts and experience. The effects of material revisions in estimates are reflected in the financial statements prospectively from the date of the change in estimate. Our significant accounting policies are more fully described in Note 2 to our Unaudited Consolidated Financial Statements included elsewhere in this Quarterly Report.

We define our critical accounting policies as those accounting principles that require us to make subjective estimates and judgments about matters that are uncertain and are likely to have a material impact on our financial condition and results of operations, as well as the specific manner in which we apply those principles. We believe the critical accounting policies used in the preparation of our financial statements that require significant estimates and judgments are the following:

***Impairment of Long-Lived Assets***

The Company reviews long-lived assets, including definite-lived intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The recoverability of these assets is determined by comparing the forecasted undiscounted net cash flows of the operation to which the assets relate to the carrying amount. If the operation is determined to be unable to recover the carrying amount of its assets, then these assets are written down first, followed by other long-lived assets of the operation to fair value. Fair value is determined based on discounted cash flows or appraised values, depending on the nature of the assets.

***Intangible Assets***

The Company records its intangible assets at cost in accordance with ASC 350, Intangibles – Goodwill and Other. The Company reviews the intangible assets for impairment on an annual basis or if events or changes in circumstances indicate it is more likely than not that they are impaired. These events could include a significant change in the business climate, legal factors, a decline in operating performance, competition, sale or disposition of a significant portion of the business, or other factors.

***Goodwill***

Goodwill represents the excess of the purchase price of acquired business over the estimated fair value of the identifiable net assets acquired. Goodwill is not amortized but is tested for impairment at least once annually, at the reporting unit level or more frequently if events or changes in circumstances indicate that the asset might be impaired. The goodwill impairment test is applied by performing a qualitative assessment before calculating the fair value of the reporting unit. If, on the basis of qualitative factors, it is considered not more likely than not that the fair value of the reporting unit is less than the carrying amount, further testing of goodwill for impairment would not be required. Otherwise, goodwill impairment is tested using a two-step approach.

The first step involves comparing the fair value of the reporting unit to its carrying amount. If the fair value of the reporting unit is determined to be greater than its carrying amount, there is no impairment. If the reporting unit's carrying amount is determined to be greater than the fair value, the second step must be completed to measure the amount of impairment, if any. The second step involves calculating the implied fair value of goodwill by deducting the fair value of all tangible and intangible assets, excluding goodwill, of the reporting unit from the fair value of the reporting unit as determined in step one. The implied fair value of the goodwill in this step is compared to the carrying value of goodwill. If the implied fair value of the goodwill is less than the carrying value of the goodwill, an impairment loss equivalent to the difference is recorded.

***Convertible Instruments***

The Company evaluates and accounts for conversion options embedded in its convertible instruments in accordance with ASC 815 "Derivatives and Hedging".

ASC 815 generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free-standing derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur, and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. Professional standards also provide an exception to this rule when the host instrument is deemed to be conventional as defined under professional standards.

The Company accounts for convertible instruments (when it has determined that the embedded conversion options should not be bifurcated from their host instruments) in accordance with ASC 470-20 "Debt – Debt with Conversion and Other Options." Accordingly, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Original issue discounts under these arrangements are amortized over the term of the related debt to their earliest date of redemption. The Company also records when necessary deemed dividends for the intrinsic value of conversion options embedded in preferred shares based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note.

ASC 815-40 "Derivatives and Hedging – Contracts in Entity's Own Equity" provides that, among other things, generally, if an event is not within the entity's control could or require net cash settlement, then the contract shall be classified as an asset or a liability.

***Derivative Financial Instruments Indexed to the Company's Common Stock***

We have generally issued derivative financial instruments, such as warrants, in connection with our equity offerings. We evaluate the terms of these derivative financial instruments in order to determine their accounting treatment in our financial statements. Key considerations include whether the financial instruments are freestanding and whether they contain conditional obligations. If the warrants are freestanding, do not contain conditional obligations and meet other classification criteria, we account for the warrants as an equity instrument. However, if the warrants contain conditional obligations, then we account for the warrants as a liability until the conditional obligations are met or are no longer relevant. Because no established market prices exist for the warrants that we issue in connection with our equity offerings, we must estimate the fair value of the warrants, which is as inherently subjective as it is for stock options, and for similar reasons as noted in the stock-based compensation section above. For financial instruments which are accounted for as a liability, we report any changes in their estimated fair values as gains or losses in our Consolidated Statement of Income.

***Variable Interest Entity (VIE) Accounting***

We evaluate our ownership, contractual relationships and other interests in entities to determine the nature and extent of the interests, whether such interests are variable interests and whether the entities are VIEs in accordance with ASC 810, Consolidations. These evaluations can be complex and involve Management judgment as well as the use of estimates and assumptions based on available historical information, among other factors. Based on these evaluations, if the Company determines that it is the primary beneficiary of a VIE, the entity is consolidated into the financial statements.

***Investments - Equity Method***

The Company accounts for equity method investments at cost, adjusted for the Company's share of the investee's earnings or losses, which are reflected in the consolidated statements of operations. The Company periodically reviews the investments for other than temporary declines in fair value below cost and more frequently when events or changes in circumstances indicate that the carrying value of an asset may not be recoverable.

The Investment in GMP Bio represents the investment into equity securities for which the Company elected the fair value option pursuant to ASC 825-10-15 and subsequent fair value changes in the GMP Bio shares are included in the result from continuing operations. Refer to Note 6 to these Notes to the Consolidated Financial Statements.

***Joint Venture agreement***

We have equity interest in unconsolidated arrangement that is primarily engaged in the business of drug discovery, development, and commercialization, including but not limited to development and commercialization of TGF-beta therapeutics as well as establishing and operating contract development and manufacturing organization (CDMO) facilities and capabilities. The Company first review the arrangement to determine if it meets the definition of an accounting joint venture pursuant to ASC 323-10-20. In order to meet the definition of a joint venture, the arrangement must have all of the following characteristics, (i) the arrangement is organized within a separate legal entity, (ii) the entity is under the joint control of the venturers, (iii) the venturers must be able to exercise joint control through their equity investments, (iv) the qualitative characteristics of the entity, including its purpose and design must be consistent with the definition of a joint venture

We consolidate arrangements that are considered to be VIEs where we are the primary beneficiary. We analyze our investments in joint ventures to determine if the joint venture is considered a VIE and would require consolidation. We (i) evaluate the sufficiency of the total equity investment at risk, (ii) review the voting rights and decision-making authority of the equity investment holders as a group and whether there are limited partners (or similar owning entities) that lack substantive participating or kick out rights, guaranteed returns, protection against losses, or capping of residual returns within the group and (iii) establish whether activities within the venture are on behalf of an investor with disproportionately few voting rights in making this VIE determination. To the extent that we own interests in a VIE and we (i) have the power to direct the activities that most significantly impact the economic performance of the VIE and (ii) have the obligation or rights to absorb losses or receive benefits that could potentially be significant to the VIE, then we would be determined to be the primary beneficiary and would consolidate the VIE. To the extent that we own interests in a VIE, then at each reporting period, we re-assess our conclusions as to which, if any, party within the VIE is considered the primary beneficiary. To the extent that our arrangements do not qualify as VIEs, they are consolidated if we control them through majority ownership interests or if we are the managing entity (general partner or managing member) and our partner does not have substantive participating rights. Control is further demonstrated by our ability to unilaterally make significant operating decisions, refinance debt, and sell the assets of the joint venture without the consent of the non-managing entity and the inability of the non-managing entity to remove us from our role as the managing entity. We use the equity method of accounting for those arrangements where we exercise significant influence but do not have control. Under the equity method of accounting, our investment in each arrangement is included on our consolidated balance sheet; however, the assets and liabilities of the joint ventures for which we use the equity method are not included on our consolidated balance sheet.

When we sell or contribute properties to unconsolidated arrangements and retain a non-controlling ownership interest in such assets, we recognize the difference between the consideration received and the carrying amount of the asset sold or contributed when its derecognition criteria are met. The equity method investment we retain in such partial sale transactions is noncash consideration and is measured at fair value. As a result, the accounting for a partial sale will result in the recognition of a full gain or loss. When circumstances indicate there may have been a reduction in the value of an equity investment, we evaluate whether the loss in value is other than temporary. If we conclude it is other than temporary, we recognize an impairment charge to reflect the equity investment at fair value. The Company elected the fair value option under the fair value option Subsection of Section 825-10-15 to account for its equity-method investment.

***Research and Development Expense***

Research and development expense consist of costs we incur for the development of our investigational drugs and, to a lesser extent, for preclinical research activities. Research and development costs are expensed as incurred. Research and development expense include clinical trial costs, salaries and benefits of employees, including associated stock-based compensation, payments to clinical investigators, drug manufacturing costs, laboratory supplies and facility costs. Clinical trial costs are a significant component of our research and development expense, and these can be difficult to accurately estimate. Included in clinical trial costs are fees paid to other entities that conduct certain research and development activities on our behalf, such as clinical research organizations, or CROs. We estimate clinical trial expense based on the services performed pursuant to contracts with research institutions such as CROs and the actual clinical investigators. These estimates are based on actual time and expenses incurred by the CRO and the clinical investigators. Also included in clinical trial expense are costs based on the level of patient enrollment into the clinical trial and the actual services performed under the related clinical trial agreement. Changes in clinical trial assumptions, such as the length of time estimated to enroll all patients, rate of screening failures, patient drop-out rates, number and nature of adverse event reports and the total number of patients enrolled can impact the average and expected cost per patient and the overall cost of the clinical trial. Based on patient enrollment reports and services provided, we may periodically adjust estimates for the clinical trial costs. If we do not identify costs that we have begun to incur or if we underestimate or overestimate the level of services performed, the length of time for these services or the costs of these services, our actual expenses could differ from our estimates.

***Share-Based Compensation***

We record the estimated fair value of all share-based payments issued to employees and other service providers. Our share-based payments consist primarily of stock options. The valuation of stock options is an inherently subjective process, since market values are not available for any stock options in our equity securities. Market values are also not available on long-term, non-transferable stock options in other equity securities. With no market values on options to trade in our common stock and no comparable market values on any long-term non-transferable stock options, the process of valuing our stock options is even more uncertain and subjective. Accordingly, we use a Black-Scholes option pricing model to derive an estimated fair value of the stock options which we issue. The Black-Scholes option pricing model requires certain input assumptions, including the expected term of the options and the expected volatility of our common stock. Changes in these assumptions could have a material impact on the estimated fair value that we record for share-based payments that we issue. We determine the term of the options based on the simplified method, which averages the vesting period and the contractual life of the stock option. We determine the expected volatility based on the historical volatility of our common stock over a period commensurate with the option's expected term. The Black-Scholes option pricing model also requires assumptions for risk-free interest rates and the expected dividend yield of our common stock, but we feel that these values are more objective and note that changes in these values do not have a significant impact on the estimated value of the options when compared to the volatility and term assumptions.

We are also required to estimate the level of award forfeitures expected to occur and record compensation expense only for those awards that are ultimately expected to vest. Accordingly, we perform a historical analysis of option awards that are forfeited prior to vesting, and record total stock option expense that reflects this estimated forfeiture rate.

The impacts of any of the critical accounting policies and significant judgments and estimates, if applicable, have been reflected in the Notes to the Consolidated Financial Statements (unaudited) in this Report.

*Results of Operations*

**Comparison of the Results of Operations for the three Months Ended September 30, 2025 to the three Months Ended September, 2024**

A comparison of the Company's operating results for the three months ended September 30, 2025 and 2024, respectively, is as follows.

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| | | | |
|:---|:---|:---|:---|
|  | **September 30,<br> 2025** | **September 30,<br> 2024** | **Variance** |
| Operating expense: |  |  |  |
| Research and development | 426 | 480 | (54) |
| General and administrative | 490547 | 80277 | 410270 |
| Goodwill impairment | - | 3200000 | (3200000) |
| Total operating expense | 490973 | 3280757 | (2789784) |
| Loss from operations | (490973) | (3280757) | 2789784 |
| Interest expense, net | (231338) | (205616) | (25722) |
| Change in the value of derivatives on debt | (392058) | 114722 | (506780) |
| Net income (loss) before controlling interests | $(1114369) | $(3371651) | $2257282 |

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<u>Net Income (Loss</u>)

We recorded a net loss of approximately $1.1 million for the three months ended September 30, 2025, as compared to net loss of approximately 3.4 million for the three months ended September 30, 2024. The difference in net loss of approximately $2.3 million between the three months ended September 30, 2025 as compared to the same period of 2024 was primarily due to lower goodwill impairment of approximately $3.2 million recorded during the three months ended September 30, 2024, offset by higher other operating expenses of approximately $0.4 million recorded during the three months ended September 30, 2025, higher change in value of derivatives on debt of approximately $0.5 million, and higher interest expense of approximately $26 thousand, for the three months ended September 30, 2025 as compared to the same period of 2024. A description of the various descriptions resulting in the net loss for the three month periods of September 30, 2025 and 2024, respectively, are reflected below.

Research and Development Expenses

Research and development ("*R&D*") expenses for the three months ended September 30, 2025 compared to the same period in 2024 were similar.

As previously disclosed, and as a result of our JV, we expect our R&D expense to decrease for the remainder of the year 2024, specifically for activities related to OT-101, including the initiation of new clinical trials. Any other development expenses will be subject to our continuing ability to secure sufficient funding to continue planned operations.

General and Administrative Expenses

General and administrative ("*G&A*") expenses increased by approximately $0.4 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily due to higher stock-based expense of approximately $0.2 million for services, higher operational expenses of approximately $0.2 million incurred with fees for certain investor relation and public relations services under our ICA and for the settlement of our litigation with an ex-employee; and higher legal and professional expenses of approximately $43 thousand.

As previously disclosed and as a result of our JV, we expect our G&A activities to remain steady or marginally increase for the remainder of 2025. Any other G&A expenses will be subject to our continuing ability to secure sufficient funding to continue planned operations or to improve shareholder value for the Company.

Goodwill Impairment

Our stock price has held up since the beginning of 2025 and therefore did not make a downward impact on our goodwill during the three months ended September 30, 2025. We recorded goodwill impairment of $3.2 million, on the approximately $12.0 million goodwill which we recorded upon our acquisition of PointR, for the three months ended September 30, 2024.

Interest Expense, Net

We recorded interest expense, including amortization of debt costs, of approximately $0.23 million for the three months ended September 30, 2025, compared to $0.2 million for the three months ended September 30, 2024, primarily in connection with debt raised from convertible notes and the JH Darbie Financing, March 2022 and May/June 2022 financing and July 2025 financing. For more information on debt raised from convertible notes and the JH Darbie Financing, see Note 5 and Note 7 of the Unaudited Consolidated Financial Statements of this Quarterly Report.

Change in Value of Derivatives

During the three months ended September, 2024, we recorded approximately $0.4 million of an increase in change in value upon conversion of certain debt owed on the convertible promissory notes issued to our CEO and a bridge investor (collectively, the "*Convertible Notes*"). The Company recorded approximately $0.1 million of a decrease in change in value during the same period in 2024. For more information on value of derivatives, refer to the Note 5 of the Unaudited Consolidated Financial Statements of this Quarterly Report.

**Comparison of the Results of Operations for the Nine Months Ended September 30, 2025 to the Nine Months Ended September 30, 2024**

A comparison of the Company's operating results for the nine months ended September 30, 2025 and 2024, respectively, is as follows.

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| | | | |
|:---|:---|:---|:---|
|  | **September 30,<br> 2025** | **September 30,<br> 2024** | **Variance** |
| Service Revenue | $- | $- | $- |
| Total Revenue |  |  |  |
| Operating expense: |  |  |  |
| Research and development | 1020 | 1212 | (192) |
| General and administrative | 657019 | 343347 | 313672 |
| Goodwill impairment | - | 3200000 | (3200000) |
| Total operating expense | 658039 | 3544559 | (2886520) |
| Loss from operations | (658039) | (3544559) | 2886520 |
| Interest expense, net | (642917) | (655946) | 13029 |
| Reimbursement for expenses – related party |  | 22937 | (22937) |
| Change in the value of derivatives on debt | 32772 | 140828 | (108056) |
| Loss on conversion of debt | - | (88258) | 88258 |
| Net income (loss) before controlling interests | $(1268184) | $(4124998) | $2856814 |

---

Net Income

We recorded a net loss of approximately $1.3 million for the nine months ended September 30, 2025 as compared to a net loss of approximately $4.1 million for the same period ended September 30, 2024. The difference in net loss, of approximately $2.9 million, for the nine months ended September 30, 2025 as compared to the same period of 2024, was primarily due to lower goodwill impairment of approximately $3.2 million incurred in 2024 but no similar expense during the same period in 2025, lower change in value of derivatives on debt of approximately $0.1 million, lower reimbursement of expenses by a related party of approximately $20 thousand, offset by lower operating expense of approximately $0.3 million, lower interest cost of approximately $13 thousand, and lower loss on conversion of debt of approximately $0.1 million, compared to the same period in 2024. A description of the various descriptions resulting in the net loss for the nine month periods of September 30, 2025 and 2024, respectively, are reflected below.

Research and Development Expenses

Research and development ("*R&D*") expenses for the nine months ended September 30, 2025 compared to the same period in 2024, were similar.

As previously disclosed and as a result of our JV, we expect our G&A activities to remain steady or marginally increase for the remainder of 2025. Any other G&A expenses will be subject to our continuing ability to secure sufficient funding to continue planned operations.

General and Administrative Expenses

General and administrative ("*G&A*") expenses increased by approximately $0.3 million for the nine months ended September 30, 2025 compared to the same period ended September 30, 2024, primarily due to higher stock-based expense of approximately $0.2 million associated with fees for certain investor relation and public relations services under our ICA, and higher other operational costs of approximately $0.2 million, of which $0.1 million was recorded in connection with the settlement of our litigation with an ex-employee, offset by lower legal expense of approximately $43 thousand.

As previously disclosed and as a result of our JV, we expect our G&A activities to remain steady or marginally increase for the remainder of 2025. Any other G&A expenses will be subject to our continuing ability to secure sufficient funding to continue planned operations or to improve shareholder value for the Company.

Goodwill Impairment

Since our stock price was not negatively impacted during the nine months ended September 30, 2025, we did not record an impairment on our goodwill. We recorded goodwill impairment of $3.2 million, on the approximately $12.0 million goodwill which we recorded upon our acquisition of PointR, due to a reduction of our stock price during the nine months ended September 30, 2024.

Interest Expense, Net

We recorded interest expense, including amortization of debt costs, of approximately $0.65 million for the nine months ended September 30, 2025 and September 30, 2024 primarily in connection with debt raised from convertible notes, JH Darbie Financing, March 2022 and May/June 2022 Financing and July 2025 financing. For more information on debt raised from convertible notes and the JH Darbie Financing, see Note 5 and Note 7 of the Unaudited Consolidated Financial Statements of this Quarterly Report.

Reimbursement of expenses

There was no reimbursement of expenses with related parties for nine months ended September 30, 2025. The Company was reimbursed $23 thousand during the nine months ended September 30, 2024 by Autotelic Inc. a related party, on behalf of our JV.

Change in Value of Derivatives

During the nine months ended September 30, 2025, we recorded approximately $32 thousand gain in value upon conversion of the debt to liabilities as a derivative as well as new debt converting to liabilities on the Convertible Notes as compared to approximately $0.1 million gain during the same period of 2024. The Convertible Notes became convertible 180 days after issuance, and as such the CEO and the bridge investor had the ability to convert that debt into equity at: (i) the variable conversion price of 65% of the Company's lowest traded price after the first 180 days, or (ii) at the lower of $0.10 per share or 55% of the Company's traded stock price under certain circumstances. This gave rise to a derivative feature within the debt instrument which resulted in the recording of a derivative liability and change in value of the derivative.

Loss on Conversion of Debt

During the nine months ended September 30, 2025, we recorded no loss on conversion of debt. related to the difference in fair value to the price at which the debt was converted, compared to approximately $0.1 million loss on conversion of debt during the nine months ended September 30, 2024.

*Liquidity, Financial Condition and Capital Resources ($s in '000's)*

---

| | | |
|:---|:---|:---|
|  | **September 30,<br> 2025** | **December 31,<br> 2024** |
| Cash, including restricted cash of $20 | $429 | $106 |
| Working capital | (18467) | (19065) |
| Stockholders' Equity | 8077 | 8252 |

---

The Company has experienced net losses every year since inception and as of September 30, 2025 had an accumulated deficit of approximately $39 million. As of September 30, 2025, the Company had approximately $0.4 million in cash, and current liabilities of approximately $20.1 million. Of the approximately $20.1 million in current liabilities, of which approximately $1.3 million are net assumed liabilities of the Company as part of the Oncotelic Inc. reverse merger, $4.9 million was debt for conducting clinical trials for OT-101 from GMP and $2.6 million related to contingent liability to issue common stock of the Company to PointR shareholders upon achievement of certain milestones.

The Company does not expect to generate any meaningful revenue from product sales or licensing in the near future and expects to incur additional operating losses over the next several years, primarily as a result of the Company's plans to continue clinical trials for its investigational drugs. The Company's limited capital resources, history of recurring losses and uncertainties as to whether the Company's operations will become profitable raise substantial doubt about its ability to continue as a going concern. The financial statements contained in this report do not include any adjustments related to the recoverability of assets or classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

Since the Company formed the JV with Dragon, all costs associated with developing the assets licensed to the JV and a substantial portion of the Company's general and administrative expenses have shifted to the JV reducing the Company's direct expenses and capital requirements.

The Company requires capital in order to fund its operations and continue development of product candidates. including AL-101, Artemisinin for COVID-19, developing AI technologies to support the COVID-19 therapies; in addition to evaluating the development pathway of its product candidates; OXi4503 and/or CA4P. The Company is also independently planning to develop OT-101 for certain animal health indications and contemplating using crypto currencies for that platform.

The Company anticipates raising substantial additional capital through the sale of equity securities and/or debt. The Company has entered into the Mast EPA, but the ability to sell securities to Mast under that arrangement are subject to limitations based on the trading volume of the Company's common stock. There are no other financing arrangements in place at this time.

If the Company is unable to access additional funds when needed, it may not be able to continue the development of these investigational drugs and the Company could be required to delay, scale back or eliminate some or all of its development programs and operations. Any additional equity financing, if available, would be dilutive to the current stockholders and may not be available on favorable terms. Additional debt financing, if available, may involve restrictive covenants and could also be dilutive. The Company's ability to access capital is not assured and, if access is not achieved on a timely basis, would materially harm the Company's financial condition, the value of its common stock and its business prospects.

---

| | | |
|:---|:---|:---|
|  | **Nine month ended September 30,** | **Nine month ended September 30,** |
|  | **2025** | **2024** |
| Net cash used in operating activities | $(600) | $(636) |
| Net cash provided by financing activities | 923 | 615 |
| Increase (decrease) in cash | $(323) | $(21) |

---

Operating Activities

Net cash used in operating activities was approximately $0.6 million for the nine months ended September 30, 2025. This was due to the net loss of approximately $1.3 million and by approximately $33 thousand of change in fair value of derivative, offset primarily by changes in operating assets and liabilities of approximately $0.4 million, by approximately $0.1 million due to amortization of debt discounts, and approximately $0.2 million of stock based compensation.,

Net cash used in operating activities was approximately $0.6 million for the nine months ended September 30, 2024. This was due to the net loss of approximately $4.1 million, primarily offset by approximately $3.2 million of amortization of goodwill, approximately $88 thousand from loss on conversion of debt, approximately $0.1 million of change in fair value of derivative, approximately $0.1 million due to amortization of debt discounts and deferred financing costs and changes in operating assets and liabilities of approximately $0.2 million.

Financing Activities

For the nine months ended September 30, 2025, net cash provided by financing activities was approximately $0.9 million, primarily due to receipt of a short-term loan from a related party of approximately $0.4 million and proceeds from a convertible debt of approximately $0.5 million.

For the nine months ended September 30, 2024, net cash provided by financing activities was approximately $0.6 million, primarily due to receipt of a short-term loan from a related party.

*Off-Balance Sheet Arrangements*

We have no off-balance sheet arrangements.

***<u>Contractual Obligations</u>***

Our current drug development programs are based on a series of compounds called combretastatins, which we have exclusively licensed from Arizona State University, or ASU. If our current drug candidates are approved, we will be required to pay low to mid-single-digit royalties on future net sales of products associated with the ASU patent rights until these patent rights expire.

We also have an exclusive license from Bristol-Myers Squibb, or BMS, for certain patent rights to particular combretastatins, including CA4P. If CA4P is approved, we will be required to pay low-single-digit royalties on future net sales of products associated with the BMS patent rights until these patent rights expire.

**DIRECTORS AND EXECUTIVE OFFICERS** 

**Directors and Executive Officers**

The following table sets forth certain information about our current directors and executive officers followed by individual biographies of the directors and executive officers of the Company, including their business experience and other relevant information as of September 30, 2025.

---

| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| Vuong Trieu, Ph. D. | 61 | Chairman of the Board and Chief Executive Officer |
| Amit Shah | 59 | Chief Financial Officer |
| Saran Saund | 68 | Chief Business Officer |
| Anthony E. Maida III | 73 | Chief Medical Officer – Translation Medicine & Director |
| Steven W. King | 61 | Director and Consultant |
| Seymour Fein, M.D. | 77 | Chief Regulatory Officer and Chief Medical Officer (Consultant) |

---

*Vuong Trieu, Ph.D.* was the founder and Chairman of the Board of Directors of Oncotelic Inc., having served in such capacity since 2014, and now serves as the Company's Chief Executive Officer and Chairman of the Board of Directors. Dr. Trieu has been involved in drug discovery, development, and commercialization for over 25 years, including his contributions as co-inventor of Abraxane®. He previously served as Executive Chairman and Interim CEO of Marina Biotech, Inc. from 2016 to 2018. Marina Biotech was a developer of tkRNA for the treatment of FAP/CRC (Familial adenomatous polyposis/ Colorectal Cancer). Prior to that, he served as President and CEO of IgDraSol, Inc.- a developer of a 2nd generation Abraxane—beginning in 2012 until its acquisition by Sorrento Therapeutics, Inc. in 2013. He served as Chief Scientific Officer for Sorrento Therapeutics, Inc. and a member of that company's board of directors from 2013 until 2014. Previously, Dr. Trieu was Senior Director of Pharmacology/Biology at Abraxis Bioscience/Celgene, where he led the preclinical, clinical and PK/biomarker development of Abraxane, and was the co-inventor of the intellectual property covering Abraxane. Earlier in his career, Dr. Trieu held positions at Genetic Therapy/Sandoz (leading the adenoviral gene therapy program against atherosclerosis), Applied Molecular Evolution (AME)/Lily (leading the expression, purification, and preclinical testing of mAb therapeutics) and Parker Hughes Institute (Director of Cardiovascular Biology program that evaluated a series of small molecules and biologics against preclinical models of atherosclerosis, dyslipidemia, stroke, ALS, and restenosis). Dr. Trieu holds a PhD in Microbiology, BS in Microbiology and Botany. He is a member of ENDO, ASCO, AACR, and many other professional organizations. Dr. Trieu is published widely in oncology, cardiovascular, and drug development.

Dr. Trieu has over 100 patent applications and 39 issued U.S. patents.

The Board believes that Dr. Trieu's extensive experience as an executive at various biotechnology and biopharmaceutical companies as well as his service on private and public company boards qualifies him to serve on the Board.

*Amit Shah* was appointed as our Chief Financial Officer effective in July 2019. Mr. Shah has served as a senior financial officer for a number of life science companies, including Chief Financial Officer at Marina Biotech, Inc., a publicly traded biotechnology company from 2017 to 2018; Vice President of Finance & Accounting Insightra Medical Inc. from 2014 to 2015, Acting Chief Financial Officer of Insightra Medical Inc. in 2015; VP Finance and Acting Chief Financial Officer at IgDraSol Inc. in 2013; Corporate Controller & Director of Finance at ISTA Pharmaceuticals from 2010 to 2012; Corporate Controller at Spectrum Pharmaceuticals from 2007 to 2010: and as Controller / Senior Manager Internal Audits at Caraco Pharmaceuticals Laboratories from 2000 to 2007. In addition to his work with life sciences companies, Mr. Shah served as the Chief Financial Officer at Eagle Business Performance Services, a management consulting and business advisory firm from end of 2018 through March 2019 and as a consultant and ultimately Senior Director of Finance – ERP, at Young's Market Company from 2015 to 2017. Mr. Shah received a Bachelor's of Commerce degree from the University of Mumbai, and is an Associate Chartered Accountant from The Institute of Chartered Accountants of India. Mr. Shah is also an inactive CPA from Colorado, USA.

*Saran Saund* has served as the Chief Business Officer of the Company since November 2019. Prior to that, he was the Chief Executive Officer and Founder of PointR Data Inc. from 2016 to 2019 where the revenue generating startup developed an innovative AI for cashier-less automated retail stores. From 2013 to 2016 Mr. Saund served as managing partner of Astralync LLC that specialized in open source AI frameworks and developed an industry consortium. Previously, he held positions as General Manager, founder and CEO at various companies, including Cambridge Silicon Radio (acquired by Qualcomm), Marvell Semiconductors Inc., and PicoMobile Inc (acquired by Marvell). Mr. Saund received his MSc. Tech in Computer Science from BITS Pilani (India) and MS Computer Science from Penn State University.

*Anthony E. Maida III, Ph.D., M.A., M.B.A.* was appointed to the Board in May 2020. Dr. Maida was also appointed as a consultant Chief Medical Officer of the Company in April 2020. Dr. Maida has been involved in the clinical development of immunotherapy for over 27 years in various executive management positions. Since June 2010, Dr. Maida has served as Senior Vice President, Clinical Research for Northwest Biotherapeutics, Inc., a cancer vaccine company focused on therapy for patients with glioblastoma multiforme and prostate cancer. From June 2009 through June 2010, Dr. Maida served as Vice President of Clinical Research and General Manager, Oncology, Worldwide for PharmaNet, Inc., a clinical research organization. From 1997 through 2010, Dr. Maida served as Chairman, Founder and Director of BioConsul Drug Development Corporation and Principal of Anthony Maida Consulting International, advising pharmaceutical and investment firms, in the clinical development of therapeutic products and product/company acquisitions. From 1992 to September of 1999, Dr. Maida was President and Chief Executive Officer of Jenner Biotherapies, Inc., an immunotherapy company. Dr. Maida is currently a member of the board of directors and audit chair of Spectrum Pharmaceuticals, Inc. and Vitality Biopharma, Inc. (OTCQB: VBIO) and was formerly a member of the board of directors and audit chair of OncoSec Medical Inc. (OTCQB: ONCS). Dr. Maida holds a B.A. in Biology and History, an M.B.A., an M.A. in Toxicology and a Ph.D. in Immunology. He is a member of the American Society of Clinical Oncology, the American Association for Cancer Research, the Society of Neuro-Oncology, and the International Society for Biological Therapy of Cancer and the American Chemical Society.

The Board believes that Dr. Maida is qualified to serve on the Board and as the Chief Medical Officer due to his extensive experience as an executive at various biotechnology and biopharmaceutical companies as well as his service on private and public company boards.

*Steven W. King* was appointed to the Board in May 2020. He previously served as the CEO of Peregrine Pharmaceuticals, Inc. and its wholly owned biomanufacturing subsidiary Avid Bioservices, Inc., during which time the company advanced its lead compound through Phase 3 development, while growing revenues to over $55 million. Prior to joining Peregrine, Mr. King was employed at Vascular Targeting Technologies, Inc., which was acquired by Peregrine in 1997. Mr. King served in a variety of executive roles at Peregrine, including Director of Research and Development from 1997 to 2000; Vice President Technology and Product Development from 2000 to 2002; Chief Operating Officer from 2002 to 2003; and Chief Executive Officer from 2003 to 2017. Mr. King served on the board of directors of Peregrine from 2003 until 2017. Mr. King received his Bachelor's and Master's degrees from Texas Tech University in Cell and Molecular Biology.

Mr. King previously worked at the University of Texas Southwestern Medical Center and is co-inventor on over 40 U.S. and foreign patents and patent applications in the vascular targeting agent field.

The Board believes Mr. King is qualified to serve as a director because of his extensive scientific understanding of technologies in development and expertise in developing and manufacturing biologics, combined with the perspective and experience he brings from having previously served on the boards of public companies.

*Seymour Fein, M.D.* was appointed to in May 2022 as the Company's Consulting Chief Regulatory Officer. Dr. Fein has been managing partner of the clinical and regulatory consulting organization, CNF Pharma, LLC for the last 20 years and in that capacity has worked closely with numerous new drug reviewing divisions at the FDA including the divisions of oncologic drug products. Dr. Fein's professional activities have been focused on drug development research for over 35 years. He has been extensively involved in the successful development of numerous drugs, biologics and medical devices during this time leading to FDA approvals for over 20 drugs (NDAs, sNDAs, BLAs) and devices (PMAs). Dr. Fein began his career at Hoffmann-La Roche Ltd. as a senior research physician and was responsible for a clinical development program that led to U.S. Food and Drug Administration (FDA) approval of recombinant interferon-alpha for cancer treatment. Dr. Fein was also the medical director of Bayer Healthcare Pharmaceuticals (U.S.) where he was responsible for therapeutic areas including gastroenterology, oncology, and cardiology. He later served as medical director for Rorer Group (now part of Sanofi) and Ohmeda (now part of Baxter). Dr. Fein founded and has been managing partner of a clinical and regulatory consulting organization and has worked closely with the numerous new drug review divisions at the FDA including the divisions of oncologic drug products. Dr. Fein has successfully overseen entrepreneurial drug development leading to the FDA approval of two orphan drug products in the field of gastroenterology and the first drug approved for the treatment of nocturia in the field of urology. Dr. Fein received his B.A. degree from the University of Pennsylvania and his M.D. degree with honors from New York Medical College. He completed a three-year residency in internal medicine at Dartmouth and a three-year fellowship in medical oncology and hematology at Harvard Medical School, where he served as an instructor of medicine during his final fellowship year. Dr. Fein is board-certified in both oncology and internal medicine.

**EXECUTIVE COMPENSATION**

***Summary Compensation Table***

The following table provides information regarding the compensation paid during the years ended December 31, 2024, and 2023 to our principal executive officer, principal financial officer and certain of our other executive officers, who are collectively referred to as "named executive officers" elsewhere in this Annual Report.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary<br> $<sup>(1)</sup>** | **Bonus<br> $** | **Stock Awards<br> $<sup>(2)</sup>** | **All Other Compensation<br> $** | **Total<br> $** |
| Vuong Trieu, Ph. D. | 2024 | – |  | – |  |  |
| *President and Chief Executive Officer* | 2023 | – |  | – |  |  |
| Anthony E. Maida III, Ph. D., M.D. MBA | 2024 | – |  | – |  |  |
| *Chief Medical Officer (May 2020) Consultant* | 2023 | – |  | – |  |  |
| Saran Saund | 2024 | – |  | – |  |  |
| *Chief Business Officer* | 2023 | – |  | – |  |  |
| Amit Shah | 2024 | – |  | – |  |  |
| *Chief Financial Officer* | 2023 | – |  | – |  |  |

---

(1) Assuming the continuation of the cash compensation and benefits continue to be borne by the JV, the Company will not report such compensation information as part of the Company's Executive Compensation.

(2) During the years 2024 and 2023, the Company has not granted any stock awards to any of its executive officers or directors, as the Company does not have a sufficient pool under the stock option plans to make such awards.

**Narrative Disclosure to Summary Compensation Table**

Commencing in August 2019, the Company entered into Employment Agreements and incentive compensation arrangements with each of its executive officers. The Employment Agreements provide for annual base salaries for each year of the term, subject to review and adjustment by the Board or the Compensation Committee from time to time. Each Employment Agreement provides that the executive shall be eligible for an annual discretionary cash bonus expressed as a percentage the executive's base salary, subject to their achievement of performance targets and goals established by the Board or the Compensation Committee. Mr. Saund was appointed as an Executive Officer in November 2019 after the PointR merger. Dr. Maida was appointed as our consultant Chief Medical Officer – Translation Medicine in May 2020 and does not have an Employment Agreement. Each of the executive officers entered into the Company's standard form of indemnification agreement.

Dr. Fein was appointed as the Chief Regulatory Officer in May 2022. Further, Dr. Fein was appointed as Chief Medical Officer in February 2023.

The initial base salaries and discretionary cash bonus amounts had been set for the executives as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Executive** | **Title** | **Initial Base Salary** | **Discretionary<br> Bonus (% of Base)** |
| Vuong Trieu | Chief Executive Officer | $450000 | 50% |
| Amit Shah | Chief Financial Officer | $320000 | 40% |
| Saran Saund | Chief Business Officer | $230000 | 40% |
| Anthony E. Maida III(1) | Chief Medical Officer | $180000 | NA |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Dr.
 Maida is a consultant to the Company and currently does not have an Employment Agreement.

The Company did not grant any increases in cash compensation to any of its Executive Officers, other than Mr. Saund whose compensation was increased to $320,000 in 2023, since the initial employment agreement due to the financial condition of the Company. However, such compensation was paid to Mr. Saund by the JV and hence not reported above. Further, as disclosed previously, our JV has paid the cash compensation to our employees, including all the other executive officers named above, since the first quarter of 2023.

The stock-based compensation on the issuance the stock options has been reported under Summary Compensation Table above, if and when granted.

**Outstanding Equity Awards at Fiscal Year-End**

The following table shows all outstanding grants of stock options as of December 31, 2024, to each of the executive officers named in the Summary Compensation Table. The table below reflects the options and restricted shares that are issuable to Messrs. Trieu, Maida, Saund and Shah.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Option Awards** | **Option Awards** | **Option Awards** | **Option Awards** | **Option Awards** |
| <br>**Name** | **Type** | **Number of Securities Underlying Unexercised Options Exercisable** | **Number of Securities Underlying Unexercised Options Exercisable** | **Option<br> Exercise**<br> **Price**  | **Option <br> Expiration Date** |
| Vuong Trieu, Ph. D. (1) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;*Chief Executive Officer & President- 2022* | ISO | 200000 | 800000 | $0.10 | 7/22/2032 |
| &nbsp;&nbsp;&nbsp;*2021* | ISO | 360000 |  | $0.1398 | 7/8/2031 |
| &nbsp;&nbsp;&nbsp;*2021* | ISO | 200000 |  | $0.1626 | 9/3/2031 |
| Saran Saund (1) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;*Chief Business Officer- 2022* | ISO | 200000 | 800000 | $0.10 | 7/22/2032 |
| &nbsp;&nbsp;&nbsp;*2021* | ISO | 675000 |  | $0.1398 | 7/8/2031 |
| &nbsp;&nbsp;&nbsp;*2021* | ISO | 100000 |  | $0.1626 | 9/3/2031 |
| Anthony Maida (1) *2022* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;*Chief Medical Officer – Consultant- 2022* | ISO | 200000 | 800000 | $0.10 | 7/22/2032 |
| &nbsp;&nbsp;&nbsp;*2021* | NQSO | 400000 |  | $0.1398 | 7/8/2031 |
| &nbsp;&nbsp;&nbsp;*2021* | NQSO | 400000 |  | $0.1626 | 9/3/2031 |
| Amit Shah (1) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;*Chief Financial Officer- 2022* | ISO | 200000 | 800000 | $0.10 | 7/22/2031 |
| &nbsp;&nbsp;&nbsp;*2021* | ISO | 400000 |  | $0.1626 | 7/8/2031 |

---

(1) The
 stock awards had been approved by the board. The stock compensation thereon has been computed and expensed when granted and reported
 in the Summary Compensation Table.

**Pension Benefits**

We do not have any qualified or non-qualified defined benefit plans.

**Nonqualified Deferred Compensation**

We do not have any non-qualified defined contribution plans or other deferred compensation plans.

**Potential Payments upon Termination or Change-In-Control**

We have entered into certain agreements and maintain certain plans that may require us to make certain payments and/or provide certain benefits to Dr. Trieu, Mr. Saund and Mr. Shah in the event of a termination of their employment or a change of control of the Company. The following table summarizes the potential payments to Dr. Trieu; and Messrs. Saund and Shah assuming that one of the described termination events occurs. The table assumes that the event occurred on December 31, 2024, the last day of our fiscal year and that each of the named officers were eligible to earn the full initial base compensation. On the final trading day of our fiscal year the closing price of our common stock on OTCQB Market was $0.04 per share.

The Employment Agreements each have a term that continues until terminated by the Company or the executive. In the event that the Company terminates an executive for "Cause", or an executive voluntarily resigns his employment, on termination the executive will be entitled to receive all accrued and unpaid base salary, any accrued and unused paid time off, and reimbursement of outstanding business expenses. If the Employment Agreements are terminated by the Company without "Cause" or the executive resigns for "Good Reason" (each as defined in the Employment Agreement) then the executive will be entitled to additional severance benefits including: (a) a lump sum payment equal to 12 months' of the executive's then current base salary (18 months in the case of Dr. Trieu); (b) accelerated vesting of all outstanding stock options and incentive compensation awards, and (c) insurance benefits or COBRA coverage for 12 months (18 months in the case of Dr. Trieu) in addition to payment of accrued and unpaid personal time.

**Vuong N. Trieu, Ph. D.**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Executive Benefits and Payments Upon Termination** | **Termination within 12 months Following Change in Control** | **Voluntary Termination by Executive or Death** | **Involuntary Not for Cause Termination or Termination by Executive with Good Reason** | **For Cause Termination** | **Disability** |
| **Base Salary** | $675000 | $— | $675000 | $— | $— |
| **Annual Bonus<br> (50% of Base Salary)** | Executive entitled to Annual Bonus related to<br> most recently<br> completed calendar year<br> if earned and<br> not already paid | Executive entitled to Annual Bonus related to<br> most recently<br> completed calendar year<br> if earned and<br> not already paid | Executive entitled to Annual Bonus related to<br> most recently<br> completed calendar year<br> if earned and<br> not already paid | N/A | Executive entitled to Annual Bonus related to<br> most recently<br> completed<br> calendar year<br> if earned and<br> not already paid |
| **Acceleration of Vesting of Equity** | 100% | 0% | 100% | 0% | 0% |
| **Stock Options:** |  |  |  |  |  |
| **Number of Stock Option** | 1998255 |  | 1998255 |  |  |
| **Value upon Termination\*** | $79930 | $— | $79930 | $— | $— |
| **Vested Stock / Received:** |  |  |  |  |  |
| **Number of Shares** | 1198255 |  | 1198255 |  |  |
| **Value upon Termination\*** | $47930 | $— | $47930 | $— | $— |
| **Relocation Reimbursement** | N/A | N/A | N/A | N/A | N/A |
| **Deferred Compensation Payout** | N/A | N/A | N/A | N/A | N/A |
| **Post-Term Health Care** | Up to 18 months | N/A | Up to 18 months | N/A | N/A |
|  | $18964 | $— | $18964 | $— | $— |
| **Excise Tax Gross Up** | N/A | N/A | N/A | N/A | N/A |

---

**Saran Saund**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Executive Benefits and Payments Upon Termination** | **Termination within 12 months Following Change in Control** | **Voluntary Termination by Executive or Death** | **Involuntary Not for Cause Termination or Termination by Executive with Good Reason** | **For Cause Termination** | **Disability** |
| **Base Salary** | $320000 | $— | $320000 | $— | $— |
| **Annual Bonus <br> (40% of Base Salary)** | Executive entitled to Annual Bonus related to most recently completed calendar year if earned and not already paid | Executive entitled to Annual Bonus related to most recently completed calendar year if earned and not already paid | Executive entitled to Annual Bonus related to most recently completed calendar year if earned and not already paid | **N/A** | Executive entitled to Annual Bonus related to most recently completed calendar year if earned and not already paid |
| **Acceleration of Vesting of Equity** | **100%** | **0%** | **100%** | **0%** | **0%** |
| **Stock Options:** |  |  |  |  |  |
| **Number of Stock Options (1)** | **1993798** | **—** | **1993798** | **—** | **—** |
| **Value upon Termination\*** | $**79752** | $**—** | $**79752** | $**—** | $**—** |
| **Vested Stock Received:** |  |  |  |  |  |
| **Number of Shares (1)** | **1193798** | **—** | **1193798** | **—** | **—** |
| **Value upon Termination\*** | $**49752** | $**—** | $**49752** | $**—** | $**—** |
| **Relocation Reimbursement** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** |
| **Deferred Compensation Payout** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** |
| **Post-Term Health Care** | Up to 12 months | **N/A** | Up to 12 months | **N/A** | **N/A** |
|  | $5671 | $— | $5671 | $— | $— |
| **Excise Tax Gross Up** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** |

---

**Amit Shah**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Executive Benefits and Payments Upon Termination** | **Termination within 12 months Following Change in Control** | **Voluntary Termination by Executive or Death** | **Involuntary Not for Cause Termination or Termination by Executive with Good Reason** | **For Cause Termination** | **Disability** |
| **Base Salary** | $320000 | $— | $320000 | $— | $— |
| **Annual Bonus<br> (50% of Base Salary)** | Executive entitled to Annual Bonus related to most recently completed calendar year if earned and not already paid | Executive entitled to Annual Bonus related to most recently completed calendar year if earned and not already paid | Executive entitled to Annual Bonus related to most recently completed calendar year if earned and not already paid | N/A | Executive entitled to Annual Bonus related to most recently completed calendar year if earned and not already paid |
| **Acceleration of Vesting of Equity** | 100% | 0% | 100% | 0% | 0% |
| **Stock Options:** |  |  |  |  |  |
| **Number of Stock Options (1)** | 1997093 |  | 1997093 |  |  |
| **Value upon Termination\*** | $79884 | $— | $79884 | $— | $— |
| **Vested Stock Received:** |  |  |  |  |  |
| **Number of Shares (1)** | 1197093 |  | 1197093 |  |  |
| **Value upon Termination\*** | $47884 | $— | $47884 | $— | $— |
| **Relocation Reimbursement** | N/A | N/A | N/A | N/A | N/A |
| **Deferred Compensation Payout** | N/A | N/A | N/A | N/A | N/A |
| **Post-Term Health Care** | Up to 12 months | **N/A** | Up to 12 months | **N/A** | **N/A** |
|  | $11208 | $— | $11208 | $— | $— |
| **Excise Tax Gross Up** | N/A | N/A | N/A | N/A | N/A |

---

\*Based on the stock price of the Company as of December 31, 2024, of $0.04 and assuming the number of shares granted are vested and earned. Assuming that the JV would be responsible for the cash compensation and the health benefits that any of the executive officers named above, that cost may not be paid for by the Company Dr. Maida is a consultant Chief Medical Officer – Translation Medicine and is not subject to potential payments upon termination or change-in-control, and as such his information has not been compiled for this table.

The information set forth above is described in more detail in the Narrative Disclosure to the Summary Compensation Table.

As defined in the employment agreements, a "Change in Control" means the following during the employment term:

(1) any
 "Person" (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the "Beneficial Owner"
 (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing more than fifty percent
 of the total voting power represented by the Company's then outstanding voting securities (excluding for this purpose any such
 voting securities held by the Company or its affiliates or by any employee benefit plan of the Company) pursuant to a transaction
 or a series of related transactions which the Board of Directors does not approve; or

(2) a
 merger or consolidation of the Company whether or not approved by the Board of Directors, other than a merger or consolidation which
 would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining
 outstanding or by being converted into voting securities of the surviving entity or the parent of such corporation) at least fifty
 percent of the total voting power represented by the voting securities of the Company or such surviving entity or parent of such
 corporation, as the case may be, outstanding immediately after such merger or consolidation; or

(3) the
 stockholders of the Company approve an agreement for the sale or disposition by the Company of all or substantially all of its assets;
 or

(4) a
 change in the composition of the Board of Directors, as a result of which fewer than a majority of the directors are Incumbent Directors,
 and provided in each such case the Change in Control also meets the requirements of a "Change in Control Event" within
 the meaning of Section 409A(a)(2)(A)(v) of the Code and Treasury Regulation Section 1.409A-3(i)(5). "Incumbent Directors"
 mean the directors who either (A) are directors of the Company as of the date of this Agreement, or (B) are elected, or nominated
 for election, to the Board of Directors with the affirmative votes of at least a majority of the Incumbent Directors at the time
 of such election or nomination (but shall not include an individual whose election or nomination is in connection with an actual
 or threatened proxy contest relating to the election of directors to the Company).

In each such case the Change of Control must also meet the requirements of a "Change of Control Event" within the meaning of Section 409(a)(2)(A)(v) of the Code.

Each of Drs. Trieu, Park, Saund and Mr. Shah will be entitled to certain benefits as described in the table above if his employment is terminated by the Company for reasons other than cause or by him with good reason. "Cause," as defined in the employment agreements, means:

(1) Substantial
 failure to perform any of his duties or to follow reasonable, lawful directions of the Board or any officer to whom the party reports;

(2) willful
 misconduct or willful malfeasance in connection with his employment;

(3) commission
 of, conviction of, or plea of nolo contendere to, any crime constituting a felony under the laws of the United States or any state
 thereof, or any other crime involving moral turpitude;

(4) material
 breach of any provision of the employment agreement, the By-laws or any other written agreement with the Company;

(5) engaging
 in misconduct that causes significant injury to the Company, financial or otherwise, or to its reputation; or

(6) any
 act, omission or circumstance constituting cause under the law governing the employment agreement.

"Good Reason," as defined in the employment agreements, means the Company:

(1) materially
 reduces the officer's title or responsibilities;

(2) relocates
 its headquarters more than sixty (60) miles from their current location (unless the relocation results in the headquarters being
 closer to the officer's residence);

(3) materially
 reduces the officer's base salary; or

(4) breaches
 a material term of the officer's employment agreement.

Good Reason must also meet the requirements for a good reason termination in accordance with Code Section 409A, and any successor statute, regulation and guidance thereto.

**Director Compensation**

For the years ended December 31, 2024, and 2023, none of the Company's non-employee directors were paid in cash or stock awards for their services as directors.

**SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND**

**RELATED STOCKHOLDER MATTERS**

**Security Ownership of Certain Beneficial Owners and Management**

The following table sets forth information, as of November 17, 2025, regarding the beneficial ownership of our common stock by:

● each of our directors and our director nominees;

● each of our executive officers;

● our directors and executive officers as a group; and

● each person known to us to beneficially own more than 5% of our common stock.

The address for each beneficial owner listed is c/o Oncotelic Therapeutics, Inc. 29397 Agoura Road, Suite 107, Agoura Hills, California, 91301. Each of the stockholders listed has sole voting and investment power with respect to the shares beneficially owned by the stockholder, subject to community property laws where applicable.

In accordance with applicable SEC rules, the number of shares reflected as beneficially owned by each entity, person, director or executive officer is determined in accordance with the rules of the SEC. Under those rules, beneficial ownership includes any shares over which the individual has sole or shared voting power or investment power as well as any shares that the individual has the right to acquire within 60 days after the Record Date through the exercise of any stock option, warrants or other rights.

We have computed the percentage of shares beneficially owned on the basis of 439,446,318 shares of our common stock outstanding as of November 17, 2025. Shares of our common stock that a person has the right to acquire within 60 days after that date through other means, such as a stock option or warrant, are deemed outstanding for purposes of computing the percentage ownership of the person holding such rights, but are not deemed outstanding for purposes of computing the percentage ownership of any other person (other than the percentage ownership of all directors and executive officers as a group).

---

| | | | |
|:---|:---|:---|:---|
| Name of Beneficial Owner | Common Stock<br> Beneficially<br> Owned |  | Percentage of<br> Common Stock |
| **Directors and Officers:** |  |  |  |
| Vuong Trieu | 132244387 | (1) | 30.0% |
| Steven W. King | 4188059 | (2) | 0.9% |
| Anthony E. Maida III | 3137314 | (3) | 0.7% |
| Amit Shah | 2584871 | (4) | 0.6% |
| Saran Saund | 18347759 | (5) | 4.1% |
| Seymour Fein, MD |  |  | 0.0% |
| All officers and directors as a group (6 persons) | 160502390 | (6) | 39.3% |
| **Beneficial owners of more than 5%** |  |  |  |
| Vuong Trieu | 132244387 | (1) | 30.0% |
| Balaji Bhakta | 43575256 | (7) | 9.8% |
| Larn Hwang | 25714323 | (8) | 5.8% |
| Chao Hsiao | 22406942 | (9) | 5.0% |

---

\* < 1%

(1) Includes: (a) 93,388,297 shares owned directly and beneficially
 by the reporting person; 11,669,415 shares of common stock issuable upon conversion of debt, 1,738,953 shares issuable upon
 exercise of stock options and 1,250,000 shares of common shares issuable upon exercise of warrants; and 4,065,000 shares of common
 stock issuable upon conversion of Series A Convertible Preferred Stock; (b) 16,780,384 shares registered in the name
 of Autotelic, Inc., and 1,388,889 shares issuable upon conversion of debt held by Autotelic, Inc., and (c) 6,872,529 shares
 registered in the name of Dr. Trieu's spouse. Dr. Trieu is the Chief Executive Officer of Autotelic, Inc. and in that capacity
 has the sole authority to control the voting and the disposition of common stock and preferred stock owned by Autotelic, Inc.
 Dr. Trieu disclaims beneficial ownership of the shares held by Autotelic, Inc., except to the extent of his beneficial interest therein.

(2) Shares held in the name of Artius Bioconsulting, LLC, consists of (i)
 3,330,647 shares of common stock and (ii) 857,412 shares issuable upon exercise of stock options granted to Mr. King.

(3) Consists of (i) 1,137,314 shares of common stock and (ii) 2,000,000
 shares issuable upon exercise of stock options.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Consists of (i) 358,837 shares of common stock, (ii) 527,778
 shares of common stock issuable upon conversion of debt and (iii) 1,698,256 shares of common stock upon exercise of options.

(5) Consists of (i) 16,456,480 shares of common stock, and (ii)
 1,891,279 shares issuable upon exercise of stock options.

(6) Consists of (i) 136,980,409 shares of common stock, (ii) 5,838,885
 shares issuable upon conversion of debt, (iii) 8,185,900 shares issuable upon exercise of options and (iv) 1,250,000 shares issuable
 upon exercise of warrants.

(7) Consists of (i) 41,630,811 shares of common stock, (ii) (iii)
 694,445 shares of common stock upon conversion of debt and 1,250,000 upon conversion of warrants.

(8) Consists of (i) 23,455,990 shares of common stock, (ii) 1,208,333
 shares of common stock issuable upon conversion of debt and (iii) 1,050,000 shares of common stock upon exercise of options.

(9) Consists of (i) 17,073,604 shares of common stock, (ii) 3,744,449
 shares of common stock issuable upon conversion of debt, (iii) 1,200,000 shares of common stock upon exercise of options, and (iv)
 388,889 shares issuable upon exercise of PPM debt and warrants.

**CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE**

Our Board of Directors has reviewed the materiality of any relationship that each of our directors has with the Company, either directly or indirectly. Based upon this review, our Board has determined that none of the directors, qualify as "independent directors" as defined under the OTC Market Rules for U.S. Companies.

*Master Service Agreement with Autotelic Inc.*

Oncotelic Inc. entered into a Master Service Agreement dated On March 9, 2020 (the "*MSA*") with Autotelic Inc. Dr. Trieu, our Chairman and CEO, is a partial owner and control person in Autotelic Inc. Autotelic Inc. currently owns less than 10% of the Company. Under the MSA, Autotelic Inc. provides business functions and services to the Company in exchange for a fee, such as consultant fees, clinical studies, conferences and other operating expenses incurred on behalf of the Company. The MSA requires a 90-day written termination notice in the event either party requires to terminate such services.

Expenses related to the MSA were approximately $500 and $1,500 and for the three and nine months ended September 30, 2025 and 2024.

*License Agreement with Autotelic Inc.*

In September 2021, the Company entered into an exclusive License Agreement with Autotelic. For more information on the exclusive license Agreement with Autotelic, refer to our 2023 Annual Report on Form 10-K filed with SEC on April 12, 2024. There we no payments to Autotelic, Inc. in connection with the License Agreement for the three and nine months ended September 30, 2025 and 2024.

*Notes Payable and Short-Term Loan – Related Party*

From time to time, Dr. Trieu our Chairman and CEO has advanced funds to the Company. At September 30, 2025 approximately $713,000, and payable to Dr. Trieu, was outstanding including: approximately $164,000 for a 2019 debenture, approximately $369,000, including accrued interest thereon, in a Fall 2019 Note bearing interest at five percent (5%) per annum, approximately $130,000 for a note in the Company's private placement, including accrued interest thereon at sixteen percent (16%) per annum and $50,000 in short terms unsecured notes bearing no interest.

From time to time, Autotelic, Inc. has advanced funds to the Company. At September 30, 2025 approximately $2.8 million was outstanding including: $302,000 in August 2021 Notes bearing interest at five percent (5%) per annum, including accrued interest thereon, and approximately $2.5 million in short terms unsecured notes bearing no interest.

*Artius Consulting Agreement*

In March 2020, the Company and Artius Bioconsulting, LLC ("*Artius*"), for which Mr. King is the Managing Member, entered into an amendment to an existing Consulting Agreement, under which Artius agreed to serve as a consultant to the Company for services related to the Company's business from time to time. For more information on this Agreement, refer to our 2024 Annual Report on Form 10-K filed with the SEC on April 15, 2025.

No expense was recorded during the nine months ended September 30, 2025 and 2024, respectively, related to this Agreement.

*Maida Consulting Agreement*

Effective May 5, 2020, the Company and Dr. Maida entered into an independent consulting agreement, commencing April 1, 2020, under which Dr. Maida will assist the Company in providing medical expertise and advice from time to time in the design, conduct and oversight of the Company's existing and future clinical trials. For more information on this Agreement, refer to our 2024 Annual Report on Form 10-K filed with the SEC on April 15, 2025.

Effective April 1, 2022, Dr Maida's compensation has been borne by the JV. No expense was recorded during the nine months ended September 30, 2025 and 2024, respectively, related to this Agreement.

*<u>Mosaic ImmunoEngineering, Inc.</u>*

In April 2024, the Company entered into a Term Sheet with Mosaic. Steven King, our Board member, is the CEO of Mosaic. The Company had advanced $40 thousand to Mosaic in accordance with the terms of the Term Sheet, and Mosaic has repaid the amount, with interest to the Company as of December 31, 2024. In addition, the Company, on behalf of our JV, had entered into an agreement with Mosaic to provide consulting services related to CMC activities for the JV. The expenses for these services have been paid for by the JV. As such, the Company has not recorded any expenses or accounts payable in this regard during the three and nine month periods ended September 30, 2025 or 2024.

**SHARES ELIGIBLE FOR FUTURE SALES**

Prior to this offering, there has been a limited public market for our common stock. At November 17, 2025, we had 442,596,586 shares of common stock outstanding of which we estimate approximately 186,493,003 shares are held by non-affiliates and are in the public float and available for resale. The remaining shares of outstanding common stock are held by our existing stockholders are "restricted securities" as that term is defined in Rule 144 under the Securities Act. Shares held by our affiliates are subject to Rule 144 under the Securities Act, which places volume limitations and other requirements on resales.

Upon completion of this offering, the shares sold by the Selling Shareholder will be freely tradable without restriction or further registration under the Securities Act, unless such shares are purchased by individuals who become "affiliates" as that term is defined in Rule 144 under the Securities Act, as the result of the securities they acquire in this offering which provide them, directly or indirectly, with control or the capacity to control us. Our officers and directors will not be purchasing shares in this offering.

Additional shares held by existing stockholders, including shares issuable upon the exercise of outstanding options or warrants, may be resold into the public market in the future, subject to restrictions under applicable securities laws, lock-up agreements, and contractual arrangements. At November 17, 2025 we had approximately 107,255,684 shares issuable upon conversion of outstanding convertible promissory notes and 37,240,289 shares issuable upon exercise of outstanding warrants and 23,802761 shares issuable upon the exercise of outstanding options.

We may issue additional shares in connection with future financings, acquisitions, or pursuant to the exercise or conversion of outstanding stock options, warrants, or other securities, which could further increase the number of shares available for sale in the public market.

Sales of substantial amounts of our common stock in the public market following this offering, or the perception that such sales may occur, could adversely affect the prevailing market price of our common stock.

**CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS**

**ON ACCOUNTING AND FINANCIAL DISCLOSURE**

Independent public accounting firm Rose, Snyder and Jacobs, LLP serve as our auditors since 2021. We have no disagreements with our accountants on accounting and financial disclosure.

**Oncotelic Therapeutics, Inc. (Formerly Mateon Theapeutics, Inc.)**

**Index to Financial Statements**

The following financial statements of Oncotelic Therapeutics, Inc.:

---

| | |
|:---|:---|
| **September 30, 2025 and 2024** |  |
|  | Page |
| [Consolidated Balance Sheet as of September 30, 2025 (unaudited) and December 31, 2024](#m_003) | F-2 |
| [Consolidated Statements of Operations for the Three and Nine months ended September 30, 2025 and 2024 (unaudited)](#m_004) | F-3 |
| [Consolidated Statements of Shareholders Equity for the Three months and Nine months ended September 30, 2025 and 2024 (unaudited)](#m_005) | F-4 |
| [Consolidated Statements of Cash Flows for the Nine months ended September 30, 2025 and 2024 (unaudited)](#m_006) | F-6 |
| [Notes to the Unaudited Consolidated Financial Statements](#m_007) | F-7 |

---

**December 31, 2024 and 2023**

---

| | |
|:---|:---|
|  | Page |
| [Report of Independent Registered Public Accounting Firm](#zt_001) | F-34 |
| [Consolidated Balance Sheets as of December 31, 2024 and 2023](#zt_002) | F-36 |
| [Consolidated Statements of Operations for the Years Ended December 31, 2024 and 2023](#zt_003) | F-37 |
| [Consolidated Statements of Stockholders Equity for the Year Ended December 31, 2024](#zt_004) | F-38 |
| [Consolidated Statements of Stockholders Equity for the Year Ended December 31, 2023](#zt_005) | F-39 |
| [Consolidated Statements of Cash Flow for the Years Ended December 31, 2024 and 2023](#zt_006) | F-40 |
| [Notes to Consolidated Financial Statements](#zt_007) | F-41 |

---

**ONCOTELIC THERAPEUTICS, INC. AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash | $409000 | $86128 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | 20000 | $20000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 3976 | 18976 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid & other current assets | 1179972 | 9107 |
| Total current assets | 1612948 | 134211 |
| In process R&D | 1101760 | 1101760 |
| Goodwill, net of impairment | 2788230 | 2788230 |
| Investment in GMP Bio at fair value | 22653225 | 22653225 |
| **Total assets** | $**28156163** | $**26677426** |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | $2565877 | $2437167 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable - related party | 347598 | 346057 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contingent consideration | 2625000 | 2625000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative liability on notes | 670844 | 703616 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Convertible and short-term debt, net of costs | 10328100 | 9790866 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Convertible debt and short-term debt - related party, net of costs | 3542244 | 3297208 |
| Total current liabilities | 20079663 | 19199914 |
| &nbsp;&nbsp;&nbsp;Total liabilities | 20079663 | 19199914 |
| Commitments and contingencies (Note 13) |  |  |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock, $.01 par value; 750,000,000 shares authorized; 439,446,318 and 407,289,618 issued and outstanding, respectively (Note 11) | 4394463 | 4072899 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 43765008 | 42219400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (39108893) | (38040668) |
| Total Oncotelic Therapeutics, Inc. stockholders' equity | 9050578 | 8251631 |
| Non-controlling interests | (974078) | (774119) |
| Total stockholders' equity | 8076500 | 7477512 |
| **Total liabilities and stockholders' equity** | $**28156163** | $**26677426** |

---

The accompanying footnotes are an integral part of these unaudited consolidated financial statements.

**ONCOTELIC THERAPEUTICS, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

**For the Three MONTHS AND NINE MONTHS ended SEPTEMBER 30, 2025 and 2024**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended <br> September 30,** | **For the Three Months Ended <br> September 30,** | **For the Nine Months Ended <br> September 30,** | **For the Nine Months Ended <br> September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Service Revenue | $- | $- | $- | $- |
| Total Revenue |  |  |  |  |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Research and development | $426 | $480 | $1020 | $1212 |
| &nbsp;&nbsp;&nbsp;General and administrative | 490547 | 80277 | 657019 | 343347 |
| &nbsp;&nbsp;&nbsp;Goodwill impairment (Note 2 and 3) | - | 3200000 | - | 3200000 |
| Total operating expenses | 490973 | 3280757 | 658039 | 3544559 |
| Loss from operations | (490973) | (3280757) | (658039) | (3544559) |
| Other income (expense): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense, net | (231338) | (205616) | (642917) | (655946) |
| &nbsp;&nbsp;&nbsp;Reimbursement for expenses - related party |  |  |  | 22937 |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative on debt | (392058) | 114722 | 32772 | 140828 |
| &nbsp;&nbsp;&nbsp;Loss on debt conversion | - | - | - | (88258) |
| Total other expense | (623396) | (90894) | (610145) | (580439) |
| Net loss before non-controlling interests | (1114369) | (3371651) | (1268184) | (4124998) |
| Net loss attributable to non-controlling interests | (67004) | (67165) | (199959) | (202000) |
| Net loss attributable to Oncotelic Therapeutics, Inc. | $(1047365) | $(3304486) | $(1068225) | $(3922998) |
| Basic net loss per share attributable to common stock | $(0.00) | $(0.01) | $(0.00) | $(0.00) |
| Basic weighted average common stock outstanding | 426435213 | 407289888 | 414315703 | 403428494 |

---

The accompanying footnotes are an integral part of these unaudited consolidated financial statements.

**ONCOTELIC THERAPEUTICS, INC. AND SUBSIDIARIES**

**Consolidated STATEMENT of STOCKHOLDERS' EQUITY**

**FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Preferred Stock** | **Preferred Stock** | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Additional<br> Paid-in**<br>**Capital** | **Accumulated**<br>**Deficit** | **Non-controlling**<br>**Interests** | **Stockholders'**<br>**Equity** |
| **Balance at January 1, 2025** |  | $**-** | **407289888** | $**4072899** | $**42219400** | $**(38040668)** | $**(774119)** | $**7477512** |
| Common shares issued upon partial conversion of debt |  |  | 1002832 | 10028 | 60170 |  |  | 70198 |
| Net loss |  | - |  |  |  | (298716) | (65548) | (364264) |
| Balance at March 31, 2025 |  |  | 408292720 | $4082927 | $42279570 | (38339384) | (839667) | 7183446 |
| Net Income (Loss) |  | - | - | - | - | 277856 | (67407) | 210449 |
| Balance at June 30, 2025 |  |  | 408292720 | 4082927 | 42279570 | (38061528) | (907074) | 7393895 |
| Common shares issued upon partial conversion of debt |  | **-** | 4516082 | 45161 | 270965 |  |  | 316126 |
| Shares and warrants issued in connection with debt, equity purchase agreement and services |  | **-** | 26637516 | 266375 | 1214473 |  |  | 1480848 |
| Net Loss |  | **-** | **-** | **-** | **-** | (1047365) | (67004) | (1114369) |
| **Balance at September 30, 2025** |  | $**-** | **439446318** | $**4394463** | $**43765008** | $**(39108893)** | $**(974078)** | $**8076500** |

---

The accompanying footnotes are an integral part of these unaudited consolidated financial statements.

**ONCOTELIC THERAPEUTICS, INC. AND SUBSIDIARIES**

**Consolidated STATEMENT of STOCKHOLDERS' EQUITY**

**FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Preferred Stock** | **Preferred Stock** | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Additional<br> Paid-in**<br>**Capital** | **Accumulated**<br>**Deficit** | **Non-controlling**<br>**Interests** | **Stockholders'**<br>**Equity** |
| **Balance at January 1, 2024** |  | $**&nbsp;&nbsp;&nbsp;&nbsp; -** | **399184128** | $**3991839** | $**41655026** | $**(33516736)** | $**(518592)** | $**11611537** |
| ASU 2020-06 adoption |  |  |  |  |  |  |  | **-** |
| Common shares issued upon partial conversion of debt |  |  | 500000 | 5000 | 108029 |  |  | 113029 |
| Net Loss |  |  |  |  |  | (408676) | (66499) | (475175) |
| Balance at March 31, 2024 |  |  | 399684128.00 | 3996839.00 | 41763055.00 | (33925412.00) | (585091.00) | 11249391 |
| Common shares issued upon partial conversion of debt |  |  | 7605760 | 76060 | 456345 |  |  | 532405 |
| Net loss |  | - | - | - | - | (209837) | (68336) | (278173) |
| Balance at June 30, 2024 |  |  | 407289888 | 4072899 | 42219400 | (34135249) | (653427) | 11503623 |
| Net loss |  | - | - | - | - | (3304486) | (67165) | (3371651) |
| **Balance at September 30, 2024** |  | $**-** | **407289888** | $**4072899** | $**42219400** | $**(37439735)** | $**(720592)** | $**8131972** |

---

The accompanying footnotes are an integral part of these unaudited consolidated financial statements.

**ONCOTELIC THERAPEUTICS, INC. AND SUBSIDIARIES**

**Consolidated STATEMENTS OF CASH FLOWS**

**FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **For the Nine Months Ended September 30,** | **For the Nine Months Ended September 30,** |
|  | **2025** | **2024** |
| Cash flows from operating activities: |  |  |
| Net income (loss) | $(1268184) | $(4124998) |
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |  |  |
| Goodwill impairment |  | 3200000 |
| Amortization of debt discount and deferred finance costs | 135573 | 117132 |
| Stock based compensation | 183742 |  |
| Change in fair value of derivative | (32772) | (140828) |
| Loss on debt conversion |  | 88258 |
| Changes in operating assets and liabilities: |  |  |
| Prepaid expenses and other current assets | 19407 | 11320 |
| Accounts payable and accrued expenses | 360565 | 211285 |
| Accounts payable to related party | 1541 | 1444 |
| Net cash used in operating activities | (600128) | (636387) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from convertible debt | 478000 | 615000 |
| &nbsp;&nbsp;&nbsp;Proceeds from short term loans, others | 445000 | - |
| Net cash provided by financing activities | 923000 | 615000 |
| Net increase (decrease) in cash | 322872 | (21387) |
| Cash and restricted cash - beginning of period | 106128 | 190405 |
| Cash and restricted cash - end of period | $429000 | $169018 |
| Supplemental cash flow information: |  |  |
| Cash paid for: |  |  |
| Interest paid | $285260 | $281260 |
| Income taxes paid | $- | $- |
| Non-cash investing and financing activities: |  |  |
| Common shares issued upon partial conversion of debt | $386324 | $645434 |
| Common shares and warrants issued in connection with debt, equity purchase agreement and services | $1480848 | $- |
| Beneficial Conversion Feature on convertible debt and restricted common shares | $- | $(209323) |

---

The accompanying footnotes are an integral part of these unaudited condensed consolidated financial statements.

**ONCOTELIC THERAPEUTICS, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**NOTE 1 – DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION**

*Description of Business*

Oncotelic Therapeutics, Inc. ("Oncotelic" or the "Company") was originally incorporated in the State of New York in 1988 as OXiGENE, Inc. The Company reincorporated in the State of Delaware in 1992, changed its name to Mateon Therapeutics, Inc. ("Mateon") in 2016, and subsequently changed its name to Oncotelic Therapeutics, Inc. in November 2020. The Company conducts business through Oncotelic and its wholly owned subsidiaries, including Oncotelic, Inc., PointR Data, Inc. ("PointR"), Pet2DAO, Inc. ("Pet2DAO"), and EdgePoint AI, Inc. ("EdgePoint"), a consolidated subsidiary with non-controlling interests. (Collectively, "Oncotelic," "we," "our," or "the Company"). Further detail on prior mergers and corporate history is provided in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the Securities and Exchange Commission ("SEC") on April 15, 2025.

The Company is principally focused on the development of immuno-oncology therapeutics, including OT-101, a transforming growth factor-beta (TGF-β) inhibitor being advanced for difficult-to-treat cancers and viral respiratory diseases. OT-101 is being developed through our joint venture ("JV") with Dragon Overseas Capital Limited ("Dragon") and GMP Biotechnology Limited ("GMP Bio"), affiliates of Golden Mountain Partners ("GMP").

As of September 30, 2025, the Company owns 45% of GMP Bio. During the quarter, GMP Bio completed an independent third-party valuation by Frost & Sullivan (Hong Kong), which preliminarily estimated the potential value of the drug pipeline under development at approximately $1.7 billion. This valuation is non-binding, forward-looking, and based upon a number of assumptions including the successful achievement of clinical, regulatory, and commercial milestones. The valuation should not be interpreted as a current measure of fair value under U.S. GAAP.

Oncotelic is in the process of seeking a separate, ASC-compliant valuation performed under U.S. GAAP standards. The results of this valuation, or other events that indicate a change in the value of the Company's holdings in GMP Bio will be incorporated into future reporting periods consistent with the Company's fair value reporting under U.S. GAAP.

The JV is advancing OT-101 for high-grade gliomas, pancreatic cancer, and other oncology indications, as well as for epidemic and pandemic respiratory diseases. In addition, the JV is developing five additional therapeutic candidates, which—if successfully developed and approved—are anticipated to contribute meaningful long-term value to both the JV and the Company.

Separately from the JV, the Company plans to develop OT-101 for select animal-health indications and is evaluating the use of digital assets and blockchain-based technologies to support that platform. The Company has also acquired apomorphine for potential uses in Parkinson's disease, erectile dysfunction, and female sexual dysfunction. The Company continues to evaluate advancement opportunities for OXi4503 (for acute myeloid leukemia and myelodysplastic syndromes) and CA4P (in combination with checkpoint inhibitors for metastatic melanoma).

The Company's core scientific focus is the development of its proprietary self-immunization protocol ("SIP™"), designed to stimulate a patient's immune system to recognize and target tumors without requiring tumor extraction or antigen identification. The SIP™ platform is supported by more than three decades of RNA-based research and is being applied initially to oncology, with potential expansion to Duchenne Muscular Dystrophy ("DMD") and other diseases driven by TGF-β overexpression.

The JV continues preparing for planned Phase 2 and Phase 3 trials for OT-101 in high-grade glioma, pancreatic cancer, and other indications. The JV is also sponsoring investigator-initiated clinical studies in additional oncology applications. Under an agreement and supplemental agreement with GMP, the Company received approximately $1.2 million in service fees related to development activities for OT-101. Additional detail regarding these agreements is included in our Annual Report on Form 10-K for the year ended December 31, 2024.

The Company remains committed to advancing its therapeutic pipeline, strengthening the clinical and commercial prospects of GMP Bio, and pursuing programs intended to address significant unmet medical needs in oncology and related therapeutic areas.

*Fundraising*

Private Placement 2 & JH Darbie Financing

Between July 2023 and January 2024, the Company entered into a series of subscription agreements with 46 accredited investors which resulted in a conversion of a gross amount of approximately $2.4 million, consisting of 94 notes, under the prior JH Darbie Financing into new debt to the Company. JH Darbie and the Company are parties to a March 2023 placement agent agreement ("Agreement") pursuant to which JH Darbie has the right to sell/convert a minimum of 10 Units and a maximum of 200 Units on a best-efforts basis. The subscription agreements entered between July 2023 and January 2024 fully converted JH Darbie PPM-1 notes into PPM-2 notes. For more information on the new JH Darbie Financing, refer to Note 8 of these Notes to the Consolidated Financial Statements.

Equity Purchase Agreement -2021

In May 2021, the Company entered into an Equity Purchase Agreement (the "*EPL*") and Registration Rights Agreement (the "*Registration Rights Agreement*") with Peak One Opportunity Fund, L.P. ("*Peak One*"), pursuant to which the Company shall have the right, but not the obligation, to direct Peak One to purchase up to $10.0 million (the "*Maximum Commitment Amount*") in shares of the common stock, par value $0.01 per share ("*Common Stock*") in multiple tranches. The Company filed a post-effective amendment for the EPL on April 15, 2025 with the SEC and the SEC has made the post-effective amendment effective on April 21, 2025. The Company filed a prospectus under rule 424b3 with the SEC on April 29, 2025. For more information on the EPL, refer to Note 10 of the Notes to the Consolidated Financial Statements.

March 2022 Notes

In March 2022, the Company entered into a Securities Purchase Agreement with Fourth Man, pursuant to which the Company issued convertible promissory note in the aggregate principal amount of $250,000, which Note is convertible into shares of the Company's Common Stock. As of September 30, 2025, this note is in default and available for conversion into the Company's Common Stock due to cross default provision contained in November / December 2021 Notes. During the nine months ended September 30, 2025, Fourth Man converted a portion of the March 2022 debt, including interest, and conversion fee, of approximately $116,000 for 1,658,914 shares of the Company's Common Stock.

For more information on the debt financing of the Company, refer to Note 5 of the Notes to the Consolidated Financial Statements.

May 2022 Note

In May 2022, the Company entered into a Securities Purchase Agreement with Mast, pursuant to which the Company issued convertible promissory notes in the aggregate principal amount of $0.6 million, which note is convertible into shares of the Company's Common Stock. The May 2022 Note was extended till December 2025. During the nine months ended September 30, 2025, Mast Hill converted a portion of the May 2022 debt, including interest, and conversion fee, of approximately $270,000 for 3,860,000 shares of the Company's Common Stock. For more information on the debt financing of the Company, refer to Note 5 of the Notes to the Consolidated Financial Statements.

June 2022 Note

In June 2022, the Company entered into a Securities Purchase Agreement with Blue Lake, pursuant to which the Company issued convertible promissory notes in the aggregate principal amount of approximately $340,000, which note is convertible into shares of the Company's Common Stock. During the year ended December 31, 2024, Blue Lake converted the balance of their debt, including accrued interest and penalty, of approximately $530,000 for approximately 7.6 million shares of the Company's Common Stock. As of September 30, 2025, this note is fully converted.

For more information on the debt financing of the Company, refer to Note 5 of the Notes to the Consolidated Financial Statements.

July 2025 Note

In July 2025, the Company entered into a Securities Purchase Agreement with Mast Hill, pursuant to which the Company issued convertible promissory notes in the aggregate principal amount of $560,000, which note is convertible into shares of the Company's Common Stock, par value $0.01 per share ("Common Stock"). This note was utilized for corporate expenses.

For more information on the debt financing of the Company, refer to Note 5 of the Notes to the Consolidated Financial Statements.

Mast Hill Equity Purchase Agreement

In August, 2025, the Company entered into an Equity Purchase Agreement (the "*Mast EPA*") and a Registration Rights Agreement (the "*Mast Registration Rights Agreement*") with Mast, pursuant to which the Company shall have the right, but not the obligation, to direct Mast, to purchase up to $25 million (the "Maximum Commitment Amount") in shares of the Company's Common Stock in multiple tranches. The Company plans to file a registration statement with the SEC at the earliest.

For more information on the Mast EPA, refer to Note 10 of the Notes to the Consolidated Financial Statements.

Jefferson Capital Ventures, LLC and Valor Nation, Inc Independent Contractor Agreements

In August, 2025, Oncotelic Therapeutics, Inc. (the "Company" or "Our") entered into independent contractor agreements ("ICA") with Jefferson Capital Ventures, LLC ("Jefferson") and Valor Nation, Inc. ("Valor") for providing certain consulting and advisory services. The ICAs call for Jefferson and Valor to provide consulting and advisory services including strategic planning meetings, coordination non-legal support for SEC compliance, balance sheet and income statement optimization strategies, shareholder and investor communication planning, liaison with investment bankers, analysts, and institutional investors, operational efficiency and cost-saving recommendations and ancillary strategic services not requiring a license, corporate planning, operations and capital markets advisory services not requiring licenses. Such services shall be provided by Jefferson and Valor for a period of 18 months from the signing of the ICA, unless terminated earlier by either party under certain predefined conditions. Jefferson has agreed to be compensated $20,000 per month in cash and issued 20,320,930 forfeitable restricted stock awards ("RSAs") of shares of Common Stock and Valor has agreed to be compensated with 4,064,586 shares of Common Stock. While the Common Stock underlying the Jefferson and Valor RSAs will be issued as of the date of the Jefferson and Valor ICAs, Jefferson will earn the RSAs and Common Stock only when certain corporate milestones are achieved. The corporate milestones ("Milestones"), when Jefferson will earn the RSAs and Common Stock, are when the Company's market capitalization exceeds $100 million on any single trading day's close, the cumulative increase of at least $10 million in shareholder equity from the start of engagement and the successful uplisting to a U.S. national exchange (e.g., Nasdaq or NYSE American), with at least one full day of trading. For more information on the Jefferson and Valor ICAs, refer to our Current Report on Form 8-K filed with the SEC on August 12, 2025.

Forever Prosperity (previously GMP) Note purchase agreements and unsecured notes

Between June 2020 and January 2022, the Company entered into various purchase agreements and promissory notes with GMP, cumulatively totaling gross $4.5 million. Such notes were assigned to Forever Prosperity, LLC, an affiliated entity of GMP.

For more information on the GMP debt financing, refer to Note 5 of the Notes to the Consolidated Financial Statements.

Joint Venture with GMP Bio

In March 2022, the Company formalized a JV, GMP Bio, with Dragon , both affiliates of GMP. Although no assurances can be given, GMP Bio currently intends to conduct an initial public offering of the JV, at a future date, on either the Hong Kong Exchange or other stock exchange. For more information on the JV, refer to Note 6 of the unaudited Notes to the Consolidated Financial Statements.

Pet2DAO

In November 2022, the Company formed a Decentralized autonomous organization ("*DAO*") entity, Pet2DAO LLC ("*Pet2DAO*"), as a wholly owned subsidiary. For more information on Pet2DAO, refer to our 2023 Annual Report on Form 10-K filed with the SEC on April 12, 2024.

Mosaic ImmunoEngineering, Inc. Term Sheet

In April 2024, the Company entered into a binding term sheet (the "Term Sheet") with Mosaic ImmunoEngineering, Inc. ("*Mosaic*"). For more information on the Term Sheet, refer to the Current Report on Form 8-K filed with the SEC on April 29, 2024. In August 2024, Mosaic and the Company mutually agreed to extend the date of the Term Sheet to expire at the earlier of (1) the signing of definitive agreements or (2) December 31, 2024. In December 2024, the Company and Mosaic further extended the term of the term-sheet to expire at the earlier of (1) the signing of definitive agreements or (2) June 30, 2025. Currently, both parties are in discussions to extend the timeline to complete the due diligence and finalize the signing of definitive agreements to a date mutually acceptable to both.

*Principles of Consolidation*

The consolidated financial statements include the accounts of Oncotelic, its wholly owned subsidiaries, Oncotelic Inc. and PointR; and Edgepoint our non-controlled interest entity. Intercompany accounts and transactions have been eliminated in consolidation. The Company's investment in GMB Bio is recorded and reported as a minority investment in equity securities.

*Basis of Presentation*

The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules of the SEC for quarterly reports on Form 10-Q and do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America. The accompanying unaudited condensed consolidated financial statements should therefore be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended December 31, 2024 included in the Company's 2024 Annual Report on Form 10-K filed with the SEC on April 15, 2025. The unaudited condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and entities in which the Company has non-controlling interests. The accompanying unaudited condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. In the opinion of management, the interim condensed consolidated financial statements reflect all adjustments of a normal recurring nature necessary for a fair presentation of the results for the interim period presented. Our consolidated operations comprise a single operating segment and reporting unit.

*Liquidity and Going Concern*

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred net accumulated losses of approximately $39.1 million since inception of Oncotelic Inc., as the Company's historical financial statements before the Merger have been replaced with the historical financial statements of Oncotelic Inc. The Company also has a negative working capital of approximately $18.5 million at September 30, 2025, of which approximately $2.6 million contingent liability of issuance of common shares of the Company to PointR shareholders upon achievement of certain milestones in accordance with the PointR Merger Agreement. The Company has negative cash flows from operations for the nine months ended September 30, 2025 of approximately $0.6 million. These conditions raise substantial doubt about the Company's ability to continue as a going concern for a period of one year from the date of this filing. Management expects to continue to incur significantly lower direct costs and losses in the foreseeable future, as a majority of the costs related with the development of OT-101 have been, and will be, incurred by the JV, but the Company also recognizes the need to raise capital to remain viable as well as have the ability to develop its own products and achieve some of the plans to enhance shareholder value. The accompanying consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.

The Company's long-term plans include continued development of its current pipeline of products, in addition to continue the development of OT-101 which is exclusively out-licensed to the JV and the JV will be responsible for the funding required to support the development in entirety, to generate sufficient revenues, through either technology transfer or product sales, or raise additional financing to cover its anticipated expenses. The Company has supported its operations through a combination of debt and equity financing. See Note 3, 5 and 10 below). Until the Company is able to generate sufficient revenues from its current pipeline, the Company plans on funding its operations through the sale of equity and/or the issuance of debt, combined with or without warrants or other equity instruments. The Company obtained short-term loans of approximately $0.45 million from Autotelic Inc., a related party, and net approximately $480,000 from Mast Hill under a secured note during the nine months ended September 30, 2025. In addition, the Company obtained a short-term loan of $10 thousand from Amit Shah, it's CFO during the nine months ended September 30, 2025.

Although no assurances can be given as to the Company's ability to deliver on its revenue plans, or that unforeseen expenses may arise, management believes that the potential equity and debt financing or other potential financing will provide the necessary funding for the Company to continue as a going concern. Also, management cannot guarantee any potential debt or equity financing will be available on favorable terms or at all. As such, management does not believe the Company has sufficient cash for 12 months from the date of this report. If adequate funds are not available on acceptable terms, or at all, the Company will need to curtail operations, or cease operations completely.

**NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

*Use of Estimates*

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, equity-based transactions and disclosure of contingent liabilities at the date of the financial statements and revenues and expense during the reporting period. Actual results could materially differ from those estimates.

The Company believes the following critical accounting policies affect and require more significant judgments and estimates used in the preparation of the financial statements, including but not limited to, the valuation of goodwill and intangible assets for impairment, deferred tax asset and valuation allowance, and fair value of financial instruments.

*Cash*

As of September 30, 2025, and December 31, 2024 the Company held all its cash in banks. The Company considers investments in highly liquid instruments with a maturity of three months or less to be cash equivalents. The Company did not have any cash equivalents as of September 30, 2025 and December 31, 2024, respectively. Restricted cash consists of certificates of deposits held at banks as collateral.

*Debt issuance Costs and Debt discount*

Issuance costs are specific incremental costs that are (1) paid to third parties and (2) directly attributable to the issuance of a debt or equity instrument. The issuance costs attributable to the initial sale of the instrument are offset against the associated proceeds in the determination of the instrument's initial net carrying amount.

Debt issuance costs and debt discounts are being amortized over the lives of the related financings on a basis that approximates the effective interest method. Costs and discounts are presented as a reduction of the related debt in the accompanying balance sheets if related to the issuance of debt or presented as a reduction of additional paid in capital if related to the issuance of an equity instrument. The Company applies the relative fair value to allocate the issuance costs among freestanding instruments that form part of the same transaction.

If the Company amends the terms of its convertible notes, the Company reviews and applies the guidance per ASC 470-60 *Troubled debt restructurings* and ASC 470-50 *Debt-Modifications and Extinguishments*, evaluates and concludes whether the terms of the agreements were or were not substantially different as of a particular reporting date and accounts the transaction as a debt modification or a troubled debt restructuring.

*Fair Value of Financial Instruments*

The carrying value of cash, accounts payable and accrued expense approximate their fair values based on the short-term maturity of these instruments. As defined in ASC 820, "Fair Value Measurements and Disclosures," fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. ASC 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement). This fair value measurement framework applies at both initial and subsequent measurement.

The three levels of the fair value hierarchy defined by ASC 820 are as follows:

● Level
 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets
 are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information
 on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities
 and listed equities.

● Level
 2 – Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly
 observable as of the reported date. Level 2 includes those financial instruments that are valued using models or other valuation
 methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices
 for commodities, time value, volatility factors and current market and contractual prices for the underlying instruments, as well
 as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full
 term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed
 in the marketplace. Instruments in this category generally include non-exchange-traded derivatives such as commodity swaps, interest
 rate swaps, options and collars.

● Level
 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be
 used with internally developed methodologies that result in management's best estimate of fair value.

The Company did not have any Level 1 or Level 2 assets and liabilities at September 30, 2025 and December 31, 2024.

*Investment in equity securities*

The following table summarizes the cumulative gross unrealized gains and losses and fair values for long-term investments accounted for at fair value under the fair value option, with the unrealized gains and losses reported within earnings on the Condensed Consolidated Statements of Operation as of September 30, 2025 and December 31, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Initial Book Value** | **Cumulative Gross**<br> **Unrealized Gains** | **Cumulative Gross**<br> **Unrealized Losses** | **Fair Value** |
| **September 30, 2025** |  |  |  |  |
| Investment in GMP Bio (equity securities) | $22653225 | $- | $- | $22653225 |
| Total | $22653225 | $- | $- | $22653225 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Initial Book Value** | **Cumulative Gross**<br> **Unrealized Gains** | **Cumulative Gross**<br> **Unrealized Losses** | **Fair Value** |
| **December 31, 2024** |  |  |  |  |
| Investment in GMP Bio (equity securities) | $22653225 | $- | $- | $22653225 |
| Total | $22653225 | $- | $- | $22653225 |

---

The table above sets forth a summary of the recording of the initial value of the long-term value of investment in equity securities of GMP Bio on a negotiated value, based on a third-party valuation report, and changes in the fair value of such equity securities, if such change occurs, as a Level 3 fair value as of September 30, 2025 and December 31, 2024.

*Derivative Liability*

The Company has certain derivative liabilities associated with its 2019 bridge financing Convertible Notes (see Note 5), which consisted of conversion feature derivatives at September 30, 2025 and December 31, 2024, are Level 3 fair value measurements.

The table below sets forth a summary of the changes in the fair value of the Company's derivative liabilities classified as Level 3 as of September 30, 2025 and December 31, 2024:

---

| | | |
|:---|:---|:---|
|  | **September 30, 2025 <br> Conversion Feature** | **December 31, 2024 <br> Conversion Feature** |
| Balance at January 1, 2025 and 2024 | $703616 | $423214 |
| Change in fair value | (32772) | 280402 |
| Balance at September 30, 2025 and December 31, 2024 | $670844 | $703616 |

---

As of September 30, 2025, and December 31, 2024, the Company estimated the fair value of the conversion feature derivatives embedded in the convertible debentures based on assumptions used in the Black-Scholes valuation model. The key valuation assumptions used consists, in part, of the price of the Company's Common Stock, a risk-free interest rate based on the yield of a Treasury note and expected volatility of the Company's Common Stock all as of the measurement dates. The Company used the following assumptions to estimate fair value of the derivatives as of September 30, 2025 and December 31, 2024, respectively:

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br> **2025**<br>**Key**<br>**Assumptions**<br>**for fair value**<br>**of conversions** | **December 31,**<br> **2024**<br>**Key**<br>**Assumptions**<br>**for fair value**<br>**of conversions** |
| Risk free interest | 3.68% - 4.03 | 3.98%-5.09 |
| Market price of share | $0.04 - 0.08 | $0.02 – 0.04 |
| Life of instrument in years | 0.01 | 0.01 |
| Volatility | 136.4% - 139.5 | 138.38%-226.9 |
| Dividend yield | 0% | 0% |

---

A contingent consideration of $2,625,000 for shares of the Company, issuable to PointR shareholders recorded and associated with the PointR Merger, is also classified as Level 3 fair value measurements. The Company initially recorded the contingency based on a valuation conducted by a third-party valuation expert. The valuation was based on a probability of the completion of certain milestones by PointR for the shareholders to earn additional shares. The Company evaluated the probability of the earning of the milestones and concluded that the probability of achievement of the milestones had not changed, primarily due to the shifting of focus by the Company to develop AI technologies for the COVID-19 pandemic as well as other AI technologies. As such, the Company did not record any change to the valuation during the nine months ended September 30, 2025 or 2024, respectively.

If, and when, the Company changes its valuation inputs for measuring financial liabilities at fair value, either due to changes in current market conditions or other factors, it may need to transfer those liabilities to another level in the hierarchy based on the new inputs used. The Company recognizes these transfers at the end of the reporting period that the transfers occur. For the periods ended September 30, 2025 and 2024, respectively, there were no transfers of financial assets or financial liabilities between the hierarchy levels.

*Net Income (Loss) Per Share*

Basic net income (loss) per common share is computed by dividing the net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share includes the effect of Common Stock equivalents (notes convertible into Common Stock, stock options and warrants) when, under either the treasury or if-converted method, such inclusion in the computation would be dilutive. For the three and nine months ended September 30, 2025 and 2024, no equivalent shares of the Common Stock were included as the Company has incurred a loss in each of the periods, and addition of such stock equivalents in the computation would have been anti-dilutive.

*Stock-Based Compensation*

The Company applies the provisions of ASC 718, Compensation—Stock Compensation ("*ASC 718*"), which requires the measurement and recognition of compensation expense for all stock-based awards made to employees, including employee stock options, in the statements of operations.

For stock options issued to employees and members of the Board of Directors (the "*Board*") for their services, the Company estimates the grant date fair value of each option using the Black-Scholes option pricing model. The use of the Black-Scholes option pricing model requires management to make assumptions with respect to the expected term of the option, the expected volatility of the Common Stock consistent with the expected life of the option, risk-free interest rates and expected dividend yields of the Common Stock. For awards subject to service-based vesting conditions, including those with a graded vesting schedule, the Company recognizes stock-based compensation expense equal to the grant date fair value of stock options on a straight-line basis over the requisite service period, which is generally the vesting term. Forfeitures are recorded as they are incurred as opposed to being estimated at the time of grant and revised.

For warrants issued in connection with fund raising activities, the Company estimates the grant date fair value of each warrant using the Black-Scholes pricing model. The use of the Black-Scholes option pricing model requires management to make assumptions with respect to the expected term of the warrant, the expected volatility of the Common Stock consistent with the expected life of the warrant, risk-free interest rates and expected dividend yields of the Common Stock. If the warrants are issued upon termination or cancellation of prior issued warrants, then the Company estimates the grant date fair value of the new warrants using the Black-Scholes pricing model and evaluates whether the new warrants are deemed as equity instruments or liability instruments. If the warrants are deemed to be equity instruments, the Company records stock compensation expense and an addition to additional paid in capital. If, however, the warrants are deemed to be liability instruments, then the fair value is treated as a deemed dividend and credited to additional paid in capital.

For shares issued in connection with provision of services, the Company estimates the cost of the shares at a price of the Company's stock on the date of issuance and records that cost as a stock based compensation cost.

*Impairment of Long-Lived Assets*

The Company reviews long-lived assets, including definite-lived intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of these assets is determined by comparing the forecasted undiscounted net cash flows of the operation to which the assets relate to the carrying amount. If the operation is determined to be unable to recover the carrying amount of its assets, then these assets are written down first, followed by other long-lived assets of the operation to fair value. Fair value is determined based on discounted cash flows or appraised values, depending on the nature of the assets. For the three and nine months ended September 30, 2025 and 2024, respectively, there were no impairment losses recognized for long-lived assets.

*Intangible Assets*

The Company records its intangible assets at cost in accordance with ASC 350, Intangibles – Goodwill and Other. The Company reviews the intangible assets for impairment on an annual basis or if events or changes in circumstances indicate it is more likely than not that they are impaired. These events could include a significant change in the business climate, legal factors, a decline in operating performance, competition, sale or disposition of a significant portion of the business, or other factors. If the review indicates the impairment, an impairment loss would be recorded for the difference of the value recorded and the new value. For the nine months ended September 30, 2025 and September 30, 2024, there were no impairment losses recognized for intangible assets. When we sell or contribute properties to unconsolidated arrangements and retain a non-controlling ownership interest in such assets, we recognize the difference between the consideration received and the carrying amount of the asset sold or contributed.

*Goodwill*

Goodwill represents the excess of the purchase price of acquired business over the estimated fair value of the identifiable net assets acquired. Goodwill is not amortized but is tested for impairment at least once annually, at the reporting unit level or more frequently if events or changes in circumstances indicate that the asset might be impaired. The goodwill impairment test is applied by performing a qualitative assessment before calculating the fair value of the reporting unit. If, on the basis of qualitative factors, it is considered not more likely than not that the fair value of the reporting unit is less than the carrying amount, further testing of goodwill for impairment would not be required. Otherwise, goodwill impairment is tested using a two-step approach.

The first step involves comparing the fair value of the reporting unit to its carrying amount. If the fair value of the reporting unit is determined to be greater than its carrying amount, there is no impairment. If the reporting unit's carrying amount is determined to be greater than the fair value, the second step must be completed to measure the amount of impairment, if any. The second step involves calculating the implied fair value of goodwill by deducting the fair value of all tangible and intangible assets, excluding goodwill, of the reporting unit from the fair value of the reporting unit as determined in step one. The implied fair value of the goodwill in this step is compared to the carrying value of goodwill. If the implied fair value of the goodwill is less than the carrying value of the goodwill, an impairment loss equivalent to the difference is recorded. For the three and nine months ended September 30, 2025; and three months ended September 30, 2024, no impairment was recognized towards goodwill. For the nine months ended September 30, 2024, we recorded an impairment loss of approximately $3.2 million, based on the difference between the carrying value of our goodwill as against the market capitalization of the Company. For more information on goodwill and impairment, refer to Note 3 to these Notes to the Consolidated Financial Statements.

*Derivative Financial Instruments Indexed to the Company's Common Stock*

We have generally issued derivative financial instruments, such as warrants, in connection with our equity offerings. We evaluate the terms of these derivative financial instruments in order to determine their accounting treatment in our financial statements. Key considerations include whether the financial instruments are freestanding and whether they contain conditional obligations. If the warrants are freestanding, do not contain conditional obligations and meet other classification criteria, we account for the warrants as an equity instrument. However, if the warrants contain conditional obligations, then we account for the warrants as a liability until the conditional obligations are met or are no longer relevant. Because no established market prices exist for the warrants that we issue in connection with our equity offerings, we must estimate the fair value of the warrants based on the price of our Common Stock as of December 31 each year, which is as inherently subjective as it is for stock options, and for similar reasons as noted in the stock-based compensation section above. For financial instruments which are accounted for as a liability, we report any changes in their estimated fair values as gains or losses in our Consolidated Statement of Income.

*Convertible Instruments*

The Company evaluates and accounts for conversion options embedded in its convertible instruments in accordance with ASC 815 "Derivatives and Hedging".

ASC 815 generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free-standing derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur, and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. Professional standards also provide an exception to this rule when the host instrument is deemed to be conventional as defined under professional standards as "The Meaning of Conventional Convertible Debt Instrument."

The Company accounts for convertible instruments (when it has determined that the embedded conversion options should not be bifurcated from their host instruments) in accordance with ASC 470-20 "Debt – Debt with Conversion and Other Options." Accordingly, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying Common Stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Original issue discounts ("*OID*") under these arrangements are amortized over the term of the related debt to their earliest date of redemption. The Company also records when necessary deemed dividends for the intrinsic value of conversion options embedded in preferred shares based upon the differences between the fair value of the underlying Common Stock at the commitment date of the note transaction and the effective conversion price embedded in the note.

ASC 815-40 "Derivatives and Hedging – Contracts in Entity's Own Equity" provides that, among other things, generally, if an event is not within the entity's control could or require net cash settlement, then the contract shall be classified as an asset or a liability.

*Variable Interest Entity (VIE) Accounting*

The Company evaluates its ownership, contractual relationships and other interests in entities to determine the nature and extent of the interests, whether such interests are variable interests and whether the entities are VIEs in accordance with ASC 810, Consolidations. These evaluations can be complex and involve Management judgment as well as the use of estimates and assumptions based on available historical information, among other factors. Based on these evaluations, if the Company determines that it is the primary beneficiary of a VIE, the entity is consolidated into the financial statements. At September 30, 2025 and December 31, 2024, the Company identified EdgePoint to be the Company's sole VIE. At September 30, 2025 and December 31, 2024, the Company's ownership percentage of EdgePoint was 29% each, respectively. The VIE's net assets were less than $0.1 million at September 30, 2025 and December 31, 2024, respectively.

*Investments - Equity Method*

The Company accounts for equity method investments at cost, adjusted for the Company's share of the investee's earnings or losses, which are reflected in the consolidated statements of operations. The Company periodically reviews the investments for other than temporary declines in fair value below cost and more frequently when events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The Investment in GMP Bio represents the investment into equity securities for which the Company elected the fair value option pursuant to ASC 825-10-15 and subsequent fair value changes in the GMP Bio shares shall be included in the result from other income. Refer to Note 6 to these Notes to the Consolidated Financial Statements.

*Joint Venture agreement*

We have equity interest in unconsolidated arrangement that is primarily engaged in the business of drug discovery, development, and commercialization, including but not limited to development and commercialization of TGF-beta therapeutics as well as establishing and operating contract development and manufacturing organization ("*CDMO*") facilities and capabilities. The Company first reviews the arrangement to determine if it meets the definition of an accounting joint venture pursuant to ASC 323-10-20. In order to meet the definition of a joint venture, the arrangement must have all of the following characteristics, (i) the arrangement is organized within a separate legal entity, (ii) the entity is under the joint control of the venturers, (iii) the venturers must be able to exercise joint control through their equity investments, (iv) the qualitative characteristics of the entity, including its purpose and design must be consistent with the definition of a joint venture.

We consolidate arrangements that are considered to be VIEs where we are the primary beneficiary. We analyze our investments in joint ventures to determine if the joint venture is considered a VIE and would require consolidation. We (i) evaluate the sufficiency of the total equity investment at risk, (ii) review the voting rights and decision-making authority of the equity investment holders as a group and whether there are limited partners (or similar owning entities) that lack substantive participating or kick out rights, guaranteed returns, protection against losses, or capping of residual returns within the group and (iii) establish whether activities within the venture are on behalf of an investor with disproportionately few voting rights in making this VIE determination.

To the extent that we own interests in a VIE and we (i) have the power to direct the activities that most significantly impact the economic performance of the VIE and (ii) have the obligation or rights to absorb losses or receive benefits that could potentially be significant to the VIE, then we would be determined to be the primary beneficiary and would consolidate the VIE. To the extent that we own interests in a VIE, then at each reporting period, we re-assess our conclusions as to which, if any, party within the VIE is considered the primary beneficiary.

To the extent that our arrangements do not qualify as VIEs, they are consolidated if we control them through majority ownership interests or if we are the managing entity (general partner or managing member) and our partner does not have substantive participating rights. Control is further demonstrated by our ability to unilaterally make significant operating decisions, refinance debt, and sell the assets of the joint venture without the consent of the non-managing entity and the inability of the non-managing entity to remove us from our role as the managing entity.

We use the equity method of accounting for those arrangements where we exercise significant influence but do not have control. Under the equity method of accounting, our investment in each arrangement is included on our consolidated balance sheet; however, the assets and liabilities of the joint ventures for which we use the equity method are not included on our consolidated balance sheet.

When we sell or contribute properties to unconsolidated arrangements and retain a non-controlling ownership interest in such assets, we recognize the difference between the consideration received and the carrying amount of the asset sold or contributed when its derecognition criteria are met. The equity method investment we retain in such partial sale transactions is noncash consideration and is measured at fair value. As a result, the accounting for a partial sale will result in the recognition of a full gain or loss.

When circumstances indicate there may have been a reduction in the value of an equity investment, we evaluate whether the loss in value is other than temporary. If we conclude it is other than temporary, we recognize an impairment charge to reflect the equity investment at fair value.

The Company elected the fair value option under the fair value option Subsection of Section 825-10-15 to account for its equity-method investment as the Company believes that the fair value option is most appropriate for a company in the biotechnology industry, The fair value option is more appropriate for companies that are involved in extensive and usually very expensive research and development efforts, which are not appropriately reflected in the market value or reflective of the true value of the development activities of the company.

*Revenue Recognition*

The Company recognizes revenue in accordance with *ASC 606,* Revenue from Contracts with Customers (Topic 606).

Under Topic 606, the Company recognizes revenue when its customers obtain control of the promised good or services, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. The Company applies the following five-step: (i) identify the contract(s) with a customer; (ii) identify the performance obligation(s) in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation(s) in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation.

At contract inception, once the contract is determined to be within the scope of Topic 606, the Company identifies the performance obligation(s) in the contract by assessing whether the goods or services promised within each contract are distinct. The Company then recognizes revenue for the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.

The Company anticipates generating revenues from rendering services to other third-party customers for the development of certain drug products and/or in connection with certain out-licensing agreements. In the case of services rendered for development of the drugs, revenue is recognized upon the achievement of the performance obligations or over time on a straight-line basis over the extended service period. In the case of out-licensing contracts, the Company records revenues either upon achievement of certain pre-defined milestones, when there is no obligation of the Company achieve any performance obligations in connection with the said pre-defined milestones, or upon achievement of the performance obligations if the milestones require the Company to provide the performance obligations.

The Company occasionally collects advance payments from customers toward commitments to provide services or performance obligations, in which case the advance payment is recorded as a liability until the obligations are fulfilled and revenue is recognized.

*Research & Development Costs*

In accordance with ASC 730-10-25 "Research and Development", research and development costs are charged to expense as and when incurred.

*Recent Accounting Pronouncements*

All newly issued but not yet effective accounting pronouncements have been deemed to be not applicable or immaterial to the Company.

**NOTE 3 - INTANGIBLE ASSETS AND GOODWILL**

*Goodwill from 2019 Reverse Merger with Oncotelic and PointR*

The Company completed the reverse merger with Oncotelic Inc. ("Merger") in April 2019. The Company completed the merger with PointR Data Inc ("PointR Merger") in November 2019. For more details on the two mergers, refer to our 2020 Annual Report on Form 10-K for the year ended December 31, 2020 filed by the Company on April 15, 2021.

The Oncotelic merger gave rise to Goodwill of approximately $4.9 million. Upon the non-financial sale of our asset as contribution to our equity method investment, we derecognized the balance of the carrying value of our goodwill of approximately $4.9 million from the Oncotelic Merger in accordance with our policy and authoritative accounting guidance.

Further, we added goodwill of approximately $16.2 million upon the completion of the Merger with PointR. Between the years 2022 and 2024, we recorded impairments of approximately $13.4 million, as we observed our market capitalization being negatively impacted as compared to the book value of our net assets.

We have one operating segment and reporting unit. Accordingly, our review of goodwill impairment indicators was performed at the entity-wide level. In performing our annual impairment assessment, we determined if we should qualitatively assess whether it was more likely than not the fair value of goodwill was less than its carrying amount (the qualitative impairment test). The factors we considered in the assessment included our market capitalization, general macroeconomic conditions, conditions specific to the industry and market and whether there had been sustained declines in our share price. If we concluded, it was more likely than not, the fair value of the reporting unit was less than its carrying amount, or elected not to use the qualitative impairment test, a quantitative impairment test would be performed.

We used our market capitalization as an indicator of fair value. While we believe the fair value measurement need not be based solely on the quoted market price of an individual share of our Common Stock, and that we also could consider the impact of a control premium in measuring the fair value of its reporting unit. In the absence of any other valuation metrics, the Company believed using a control premium utilized would not be appropriate under the current circumstances. We also considered some other market comparables' trends in our stock price as well as the industry over a period of two successive quarters and prospective quarter to evaluate whether the fair value of our reporting unit was greater than our carrying amount. As such, we performed a quantitative impairment assessment of goodwill for our single reporting unit at the end of 2024, due to a sustained decline in our market capitalization and an increase in negative economic outlook for biotech markets We estimated and reconciled the fair value of our reporting unit utilizing our market capitalization based on the stock price of our Common Stock as of December 31, 2024. Before completing our goodwill impairment test, we first tested our indefinite-lived intangible asset then our remaining long-lived assets for impairment. We concluded our indefinite-lived intangible assets were not impaired. Based on the market capitalization, we further concluded the fair value of our single reporting unit was less than its carrying value and therefore recognized an impairment charge of $3.2 million during the year ended December 31, 2024. The calculation of the impairment charge included substantial fact-based determinations and estimates. The Company evaluated if it needed to record any additional goodwill impairment as of September 30, 2025, based solely on the market capitalization of the Company and concluded that no further impairment was required to be recorded for the nine months ended September 30, 2025.

A summary of our goodwill as of September 30, 2025 and December 31, 2024 is shown below:

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| | | |
|:---|:---|:---|
|  | **September 30,**<br> **2025** | **December 31,**<br> **2024** |
| Balance at January 1, 2025 and 2024 | $2788230 | $5988230 |
| Less: Goodwill impairment due to market capitalization | - | (3200000) |
| Balance at September 30, 2025 and December 31, 2024 | $2788230 | $2788230 |

---

In general, the goodwill is tested on an annual impairment date of December 31, unless we observe any further deterioration in our market capitalization in any interim periods, in which case we may, depending on the materiality of the impairment, record an impairment at the end of other reporting periods.

*In-Process Research & Development ("IPR&D") Summary*

The IPR&D assets were acquired in the PointR Merger during the year ended December 31, 2019. Since January 2021, the Company has determined that the IPR&D should be reported as an indefinitely lived asset and therefore will evaluate, on an annual basis, for any impairment on the IPR&D and will record an impairment if identified. The balance of IPR&D as of September 30, 2025 and December 31, 2024, respectively, was $1,101,760. For more information on the IPR&D, please refer to our 2024 Annual Report on Form 10-K filed with the SEC on April 15, 2025.

**NOTE 4 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES**

Accounts payable and accrued expense consists of the following amounts:

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| | | |
|:---|:---|:---|
|  | **September 30,**<br> **2025** | **December 31,**<br> **2024** |
| Accounts payable | $1692263 | $1691725 |
| Accrued expense | 873611 | 745442 |
|  | $2565874 | $2437167 |

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| | | |
|:---|:---|:---|
|  | **September 30,**<br> **2025** | **December 31,**<br> **2024** |
| Accounts payable – related party | $347598 | $346057 |

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**NOTE 5 – CONVERTIBLE DEBENTURES, NOTES AND OTHER DEBT**

As of September 30, 2025 and December 31, 2024, special purchase agreements (SPAs) with convertible debentures and notes, net of debt discount and including accrued interest, if any, consist of the following amounts:

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| | | |
|:---|:---|:---|
|  | **September 30,** <br> **2025** | **December 31,** <br> **2024** |
| **<u>Current Debt</u>** |  |  |
| **<u>Convertible debentures</u>** |  |  |
| 10% Convertible note payable, due April 23, 2022 – Bridge Investor | $35556 | $35556 |
| 10% Convertible note payable, due April 23, 2022 – Related Party | 164444 | 164444 |
| 10% Convertible note payable, due August 6, 2022 – Bridge Investor | 200000 | 200000 |
|  | 400000 | 400000 |
| **<u>Fall 2019 Notes</u>** |  |  |
| 5% Convertible note payable – Stephen Boesch | 137708 | 133958 |
| 5% Convertible note payable – Related Party | 323108 | 313733 |
| 5% Convertible note payable – Dr. Sanjay Jha (Through his family trust) | 322628 | 313253 |
| 5% Convertible note payable – CEO & CFO – Related Parties | 105734 | 102659 |
| 5% Convertible note payable – Bridge Investors | 216622 | 210322 |
|  | 1105800 | 1073925 |
| <br>**<u>August 2021 Convertible Notes</u>** |  |  |
| 5% Convertible note – Autotelic Inc– Related Party | 301927 | 292552 |
| 5% Convertible note – Bridge investors | 451082 | 437075 |
| 5% Convertible note – CFO – Related Party | 90584 | 87770 |
|  | 843593 | 817397 |
| **<u>March 2022 Notes</u>** |  |  |
| 16% Convertible Notes – Accredited Investors | 143579 | 233687 |
| Debt for Clinical Trials – Forever Prosperity (Formerly GMP) |  |  |
| 2% Convertible Notes – Forever Prosperity | 4907562 | 4840247 |
| **<u>May and June 2022 Note</u>** |  |  |
| 12% Convertible Notes – Accredited Investors | 788863 | 993130 |
| **<u>July 2025 Note</u>** |  |  |
| 10% Convertible Note – Accredited Investor | 400302 | - |
| **<u>JH Darbie PPM 2 Debt</u>** |  |  |
| 16% Convertible Notes - Non-related parties | 2289595 | 2183638 |
| 16% Convertible Notes – CEO – Related Party | 125000 | 125000 |
|  | 2414595 | 2308638 |
| **<u>Other Debt</u>** |  |  |
| Short term debt – Bridge investors | 210000 | 210000 |
| Short term debt from CFO – Related Party | 86050 | 76050 |
| Short term debt – Autotelic Inc. – Related Party | 2520000 | 2085000 |
| Short Term Debt from CEO – Related Party | 50000 | 50000 |
|  | 2866050 | 2421050 |
| Total of short-term convertible debentures & notes and other debt | $13870344 | 13088074 |

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*Convertible Debentures*

As of September 30, 2025, the Company had a derivative liability of approximately $670,844 and recorded a change in fair value of approximately $32,772 on the Convertible Debentures issued in 2019 to our CEO and a bridge investor. As of December 31, 2024, the Company had a derivative liability of approximately $704,000 and recorded a change in fair value of approximately $280,000 during the year ended December 31, 2024, on the Convertible Debentures issued in 2019 to our CEO and a bridge investor.

*Bridge Financing*

**Notes with Officer and Bridge Investor**

In April 2019, the Company entered into a Securities Purchase Agreement (the "*Bridge SPA*") with our CEO and the Bridge Investor with a commitment to purchase convertible notes in the aggregate of $400,000. For more information on the Bridge SPA, refer to our 2024 Annual Report on Form 10-K filed with the SEC on April 15, 2025. In April 2019, pursuant to the Bridge SPA the Company entered into Convertible Note Tranche #1 ("*Tranche #1*") with the Bridge Investor. For more information on Tranche #1, refer to our 2024 Annual Report on Form 10-K filed with the SEC on April 15, 2025. In August 2019, pursuant to the Bridge SPA the Company entered into Convertible Note Tranche #2 ("*Tranche #2*") with the Bridge Investor. For more information on Tranche #2, refer to 2024 Annual Report on Form 10-K filed with the SEC on April 15, 2025.

*Fall 2019 Debt Financing*

In December 2019, the Company closed its Fall 2019 Debt Financing, raising an additional $500,000 bringing the gross proceeds of all debt financings under the Fall 2019 Debt Financing to $1,000,000. The Company entered into those certain Note Purchase Agreements (the "*Fall 2019 Note Purchase Agreements*") with certain accredited investors and the officers of the Company for the sale of convertible promissory notes (the "*Fall 2019 Notes*"). The Company completed the initial closing under the Fall 2019 Note Purchase Agreements in November 2019. The Company issued Fall 2019 Notes in the principal amount of $250,000 to each of Dr. Vuong Trieu, the Company's Chief Executive Officer, and Stephen Boesch, in exchange for gross proceeds of $500,000. In connection with the second and final closing of the Fall 2019 Debt Financing, the Company issued Fall 2019 Notes to additional investors including $250,000 to Dr. Sanjay Jha, through his family trust, the former CEO of Motorola and COO/President of Qualcomm. The Company also offset certain amounts due to Dr. Vuong Trieu, the Company's Chief Executive Officer, Chulho Park, the Company's then Chief Technology Officer, and Amit Shah, the Company's Chief Financial Officer, all related parties as Officers of the Company, and converted such amounts due into the Fall 2019 Notes. $35,000 due to Dr. Vuong Trieu, $27,000 due to Chulho Park and $20,000 due to Amit Shah were converted into convertible debt under the Fall 2019 Notes during the third quarter of 2019. The Company also issued the Fall 2019 Notes of $168,000 to two accredited investors during the third quarter of 2019.

All the Fall 2019 Notes provided for interest at the rate of 5% per annum and are unsecured. For more information on the Fall 2019 Debt Financing, refer to our 2024 Annual Report on Form 10-K filed with the SEC on April 15, 2025.

There was no activity during the nine months ended September 30, 2025 and 2024. The total unamortized principal amount of the Fall 2019 Notes was $850,000 as of September 30, 2025, and December 31, 2024.

Further, the Company recorded interest expense of approximately $10,600 and $32,000 on these Fall 2019 Notes for the three and nine months ended September 30, 2025 and September 30, 2024, respectively. The total amount outstanding under the Fall 2019 Notes, net of discounts and including accrued interest thereon, as of September 30, 2025 and December 31, 2024, was approximately $1,106,000 and $1,073,900, respectively.

*Forever Prosperity (Formerly GMP) Notes*

In June 2020, the Company secured $2 million in debt financing, evidenced by a one-year convertible note (the "*GMP Note*") from GMP, to conduct a clinical trial evaluating OT-101 against COVID-19 bearing 2% annual interest, and was personally guaranteed by Dr. Vuong Trieu, the Chief Executive Officer of the Company.

In September 2021, the Company secured a further $1.5 million in debt financing, evidenced by a one-year convertible note (the "*GMP Note 2*") from GMP, to fund the same clinical trial evaluating OT-101 against COVID- 19 bearing 2% annual interest.

In October 2021, the Company entered into an Unsecured Convertible Note Purchase Agreement (the "*October Purchase Agreement*") with GMP, pursuant to which the Company issued a convertible promissory note in the aggregate principal amount of $0.5 million. Further, in January 2022, the Company entered into an Unsecured Convertible Note Purchase Agreement (the "*January Purchase Agreement*") with GMP, pursuant to which the Company issued a convertible promissory note in the aggregate principal amount of $0.5 million.

Between June 2020 and January 2022, the Company entered into four Unsecured Convertible Note Purchase Agreements with Forever Prosperity, for a total amount of $4.5 million. Cumulatively, these four Notes are referred to as the "*GMP Notes"*. The GMP Notes carry an interest rate of 2% per annum and mature on the earlier of (a) the one- year anniversary of the date of the Purchase Agreement, or (b) the acceleration of the maturity by GMP upon occurrence of an Event of Default (as defined below). All Notes contain a voluntary conversion mechanism whereby GMP may convert the outstanding principal and accrued interest under the terms of all the GMP Notes into shares of Common Stock (the "*Conversion Shares*"), at the consolidated closing bid price of the Company's Common Stock on the applicable OTC Market as of the date the Company receives a Notice of Conversion from GMP. Prepayment of the GMP Notes may be made at any time by payment of the outstanding principal amount plus accrued and unpaid interest. As of September 30, 2025, the GMP Notes are in default, however Forever Prosperity has not called for the repayment of the debt. The total principal outstanding on all the GMP notes, inclusive of accrued interest, was approximately $4.9 million and $4.8 million, as of September 30, 2025, and December 31, 2024, respectively.

During the three and nine months ended September 30, 2025, and 2024, the Company incurred approximately $22,700 and $67,500 of interest expense, respectively, on all the 4 notes. For a more detailed discussion on the Forever Prosperity Notes, refer to our 2024 Annual Report on Form 10-K filed with the SEC on April 15, 2025.

*August 2021 Notes*

In August 2021, the Company entered into Note Purchase Agreements with Autotelic - a related party, our CFO – a related party, and certain accredited investors (the "August 2021 investors"), whereby the Company issued four convertible notes in the aggregate principal amount of $698,500 convertible into Common Stock of the Company for net proceeds of approximately $691,000. The convertible notes carry a five (5%) percent coupon and mature one year from issuance. The majority of the August 2021 investors have the right, but not the obligation, not more than five days following the maturity date, to convert all, but not less than all, the outstanding and unpaid principal plus accrued interest into the Common Stock, at a conversion price of $0.18. The August 2021 Note Holders has waived the default in the maturity of the August 2021 Notes and as such there is no event of default and also agreed to extend the date of maturity of the August 2021 Notes to December 31, 2025. The Company determined that the economic characteristics and risks of the embedded conversion option are not clearly and closely related to the economic characteristics and risks of the debt host instrument. Further, the Company determined that the embedded conversion feature meets the definition of a derivative but met the scope exception to the derivative accounting required under ASC 815 for certain contracts involving a reporting entity's own equity.

As of September 30, 2025, and December 31, 2024, the August 2021 Notes, inclusive of accrued interest, consist of the following amounts:

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| | | |
|:---|:---|:---|
|  | **September 30,**<br> **2025** | **December 31,**<br> **2024** |
| Autotelic Related party convertible note, 5% coupon December 2025 | $301927 | $292552 |
| Accredited investors convertible note, 5% coupon December 2025 | 451082 | 437075 |
| CFO Related party convertible note, 5% coupon December 2025 | 90584 | 87770 |
|  | $843593 | $817397 |

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During the three and nine months ended September 30, 2025 and 2024, the Company recognized approximately $8,700 and $26,200 of interest expense on the August 2021 Investors notes of which approximately $4,000 and $12,190 are attributable to related parties.

At September 30, 2025 and December 31, 2024, accrued interests on these convertible notes totaled approximately $145,000 and $119,000, respectively.

*March 2022 Financing*

In March 2022, the Company entered into a Securities Purchase Agreement with Fourth Man, pursuant to which the Company issued convertible promissory note in the aggregate principal amount of $0.25 million (the "*Fourth Man Note*"), convertible into Common Stock of the Company. The Fouth Man Note carries a twelve (12%) percent coupon and a default coupon of 16% and mature at the earliest of one year from issuance or upon event of default. As of December 31, 2023, this note was in default and Fourth Man has the right at any time following issuance date to convert all or any part of the outstanding and unpaid amount of the note into the Company's Common Stock at an initial conversion price established at a fixed rate of $0.10, and subsequently corrected to $0.07 based on the terms of the Securities Purchase Agreement and Fourth Man Note. The Company granted a total number of 1,250,000 warrants convertible into an equivalent number of the Company common shares at a strike price of $0.20 up to five years after issuance. The Placement agent was also granted a total of 125,000 warrants convertible into an equivalent number of the Company Common Stock at a strike price of $0.20 up to five years after issuance, as part of a finder's fee agreement.

As of September 30, 2025, and December 31, 2024, the Fourth Man Note, including accrued interest and net of debt discount, consist of the following amounts:

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br> **2025** | **December 31,**<br> **2024** |
| Fourth Man Convertible note, 16% coupon March 2023 inclusive of accrued interest and default provision | $143579 | $233687 |
| Unamortized debt discount | - | - |
| Convertible notes, net | $143579 | 233687 |

---

During the nine months ended September 30, 2025, the Company converted approximately $62,000 in principal and approximately $54,100 in accrued interest and legal fees into 1,658,914 shares of Common Stock. The note includes a default amount calculated at 125% of the unpaid principal and accrued interest. As the Company failed to repay the note at the original maturity date, The Company has recorded an estimated default penalty of approximately $70,000. As of the date of this Report, Fourth Man has cumulatively converted approximately $0.2 million of the Fourth Man Note into 1,658,914 shares of Common Stock, and as such, the remaining balance of the Fourth Man Note is approximately $45,000.

The Company recognized approximately $7,100 and $23,800 during the three and nine months ended September 30, 2025. Similarly, the Company had recognized approximately $8,400 and $25,500 of interest during the three and nine months ended September 30, 2024.

*May 2022 Mast Financing*

In May 2022, the Company entered into a securities purchase agreement with Mast Hill Fund ("*Mast*"), whereby the Company issued one convertible note in the aggregate principal amount of $605,000 convertible into shares of the Company's Common Stock ("*May 2022 Mast Note*"). The May 2022 Mast Note carries a twelve (12%) percent coupon and a default coupon of 16% and mature at the earliest of one year from issuance or upon event of default. Mast has the right at any time following issuance date to convert all or any part of the outstanding and unpaid amount of the note into the Company's Common Stock at a conversion price established at a fixed rate of $0.10, and subsequently corrected to $0.07 based on the terms of the Securities Purchase Agreement and May 2022 Mast Note. The Company granted a total number of 3,025,000 warrants convertible into an equivalent number of the Company common shares at a strike price of $0.20 up to five years after issuance. The Placement agent was also granted a total amount of 302,500 warrants convertible into an equivalent number of the Company common shares at a strike price of $0.20 up to five years after issuance as part of a finder's fee agreement. Portion of the proceeds were be used to retire some of the November/December 2021 notes.

As of September 30, 2025, and December 31, 2024, the May 2022 Mast Note, net of debt discount, consist of the following amounts:

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br> **2025** | **December 31,**<br> **2024** |
| Mast Hill Convertible note, 12% coupon May 2025, inclusive of accrued interest and penalty | $788863 | $993130 |
| Convertible notes, net | $788863 | $993130 |

---

During the nine months ended September 30, 2025, the Company converted approximately $268,400 in accrued interest and legal fees into 3,860,000 shares of common stock. The May 2022 Mast Note had been extended through May 27, 2025 at a cost of approximately $82,000, and which is included in the amount outstanding and payable to Mast as of September 30, 2025. Mast Hill further extended the May 2022 Mast Note to December 31, 2025 in August 2025.

Accrued interest was approximately $184,000 and $388,000 as of September 30, 2025 and December 31, 2024. The Company recognized approximately $0 of interest expense attributable to the amortization of the debt discount from the original debt discount, deferred financing costs, fair value allocated to the warrants during the three and nine months ended September 30, 2025 and 2024, respectively.

*June 2022 Blue Lake Financing*

In June 2022, the Company entered into a securities purchase agreement with Blue Lake Partners, LLC ("*Blue Lake*"), whereby the Company issued one convertible note in the aggregate principal amount of $335,000 convertible into shares of Common Stock of the Company ("*June 2022 Blue Lake Note*"). The June 2022 Blue Lake Note carried a twelve (12%) percent coupon and a default coupon of 16% and mature at the earliest of one year from issuance or upon event of default. Blue Lake had the right at any time following issuance date to convert all or any part of the outstanding and unpaid amount of the note into the Company's common stock at a conversion price established at a fixed rate of $0.10. The Company granted a total number of 837,500 warrants convertible into an equivalent number of the Company common shares at a strike price of $0.20 up to five years after issuance. The Placement agent was also granted a total amount of 83,750 warrants as part of a finder's fee agreement.

In May 2024, Blue Lake converted the balance of their note of approximately $531,000 including principal, accrued interest and default penalty, into 7,605,760 shares of Common Stock of the Company.

*July 2025 Mast Financing*

On July 31, 2025, the Company entered into a securities purchase agreement with Mast, whereby the Company issued a secured convertible note in the aggregate principal amount of $560,000 convertible into shares of Common Stock of the Company ("July 2025 Mast Note"). The July 2025 Mast Note carries a twelve (12%) percent coupon and a default coupon of 18% and mature at the earliest of one year from issuance or upon event of default. Mast has the right at any time following issuance date to convert all or any part of the outstanding and unpaid amount of the note into the Company's Common Stock at a conversion price established at a fixed rate of $0.07. The note is secured against the assets of the Company, excluding any assets assigned to the JV. In connection with the July 2025 Mast Note, the Company granted a total number of 2,000,000 warrants convertible into an equivalent number of the Company Common Stock at a strike price of $0.15 up to five years after issuance. The Company also issued 2,250,000 of the Company's common stock as commitment shares to Mast.

As of September 30, 2025, and December 31, 2024, July 2025 Mast Note, net of debt discount, consist of the following amounts:

---

| | | |
|:---|:---|:---|
|  | **September 30,<br> 2025** | **December 31,<br> 2024** |
| Mast Hill Convertible note, inclusive of accrued interest 10% coupon due August 2026 | $569512 | $&nbsp;&nbsp;&nbsp;&nbsp; - |
| Convertible notes, gross | $569512 | $- |
| Less: debt discount recorded | (203834) |  |
| Amortization of debt discount | 34624 | - |
| Convertible notes, net | $400302 | $- |

---

The Company recognized approximately $9,500 and $0 of accrued interest during the nine months ended September 30, 2025, and 2024, respectively. The Company recognized approximately $34,600 and $0 of interest expense attributable to the amortization of the debt discount from the original debt discount, deferred financing costs and fair value allocated to the warrants and the commitment shares during the nine months ended September 30, 2025.

*Other short-term advances*

As of September 30, 2025 compared to December 31, 2024, other short-term advances consist of the following amounts obtained from various employees and related parties:

---

| | | |
|:---|:---|:---|
| **Other Advances** | **September 30,**<br> **2025** | **December 31,**<br> **2024** |
| Short term advance from CFO – Related Party | $86050 | $76050 |
| Short term advance from CEO – Related Party | 50000 | 50000 |
| Short term advances – bridge investors & others | 210000 | 210000 |
| Short term advances – Autotelic Inc. – Related Party | 2520000 | 2085000 |
|  | $2866050 | $2421050 |

---

As of January 1, 2024, approximately $1.5 million was outstanding and payable to Autotelic. During the year ended December 31, 2024 Autotelic Inc. provided additional short-term funding of approximately $0.6 million to the Company. During the nine months ended September 30, 2025 Autotelic Inc. provided additional short-term funding of $435,000 to the Company. As such, approximately $2.5 million was outstanding and payable to Autotelic at September 30, 2025.

As of January 1, 2024, approximately $35,000 was outstanding and payable to the Company's CFO. During the year ended December 31, 2024, the CFO provided additional short-term funding of $41,000. In the nine months ended September 30, 2025, the CFO further provided additional short-term funding of $10,000 to the Company. As such, approximately $86,000 was outstanding and payable to the Company's CFO at September 30, 2025. In December 2023, the Company received $50,000 from the Company's CEO. As such, $50,000 was outstanding to the Company's CEO at September 30, 2025. As of September 30, 2025, approximately $210,000 was outstanding as short-term advances from certain bridge investors.

**NOTE 6 - JOINT VENTURE WITH GMP BIO AND AFFILIATES, EQUITY METHOD INVESTMENT**

On March 31, 2022, the Company entered into (i) an agreement to form the JV with Dragon and GMP Bio, both affiliates of GMP, (ii) a license agreement for rights to OT-101for the territory within the United States of America with Sapu Holdings, LLC, a wholly owned subsidiary of GMP Bio and (iii) a license agreement for rights to OT-101 for the rest of the world with GMP Bio. For more information on the JV and the related agreements, refer to our 2022 Annual Report on Form 10-K/A filed with the SEC on April 19, 2023.

As of the effective date of the formation of the JV, the Company received a 45% ownership interest in the JV. The combined enterprise value of GMP Bio was approximately $50.4 million, comprising of the fair value of the Company's investment in GMP Bio of approximately $22.7 million and the total original capital contributions by Dragon Overseas of approximately $27.7 million. As of September 30, 2025, the JV had approximately $24.0 million in assets, recorded approximately $1.3 million in liabilities and incurred approximately $7.1 million and $4.9 million in operational expenses for the six months ended September 30, 2025 and 2024, respectively. Previously, GMP's fiscal year commenced on April 1 and ended on March 31. Effective December 31, 2024, GMP Bio changed its fiscal year to a calendar year.

The JV has initiated phase 2 and 3 clinical trials for OT-101 in both high-grade glioma and pancreatic cancer. In late 2023, the JV initiated a plan to start evaluating various nanoparticles that could treat various cancers. In this regard, the JV identified a total of 4 compounds, in addition to OT-101, which had the potential of significant revenue generation for the JV. In the same year, the JV signed a lease agreement to set up a GMP manufacturing facility in San Diego ("*SD*"), California. The main purpose of this facility was to initially commence an aggressive formulation development of newly planned nanoparticle platform ("*Nano Platform*"). The GMP manufacturing facility was initiated in January 2024. Upon the initiation of this facility by the JV, the JV commenced the development work on two of the four identified compounds, as well as other activities, in tandem with the development of OT-101. The JV has since completed the formulation development of one of the products and is moving to complete the formulation development for the three additional products. The JV is also working on improved formulations for OT-101 with new nanoparticle sizes. The JV also has started clinical development for OT-101 for pancreatic cancer. Significant progress has been made in the development of the products and the JV anticipates to complete the formulation development work in 2025 and pushing to initiate clinical trials for the various compounds. In late 2024, the GMP facility in San Diego was issued a Drug Manufacturing License by the State of California Department of Public Health and Food and Drug Branch. Further, in late 2024, the JV identified a sixth candidate as a compound for development for the JV and has already started to work on the formulation development of that compound as well. All manufacturing including Phase 1 clinical trial materials will be performed at the SD site.

In early 2025, the Company announced that it had entered into a strategic partnership with Shanghai Medicilon, Inc. ("*Medicilon*") to access its industry-leading rapid investigational new drug ("*IND*") development platform to support up to 20 IND projects, which the JV can also utilize to support their INDS. All six of our compounds the JV is developing are planned to be these INDs and are focused on becoming next-generation anticancer agents. The JV anticipates that all these six anticancer agents have the potential to become significant growth contributors to the JV, which in turn would add substantial value to the Company. The Company successfully completed a Phase 1 clinical trial evaluating OT-101, in combination with IL-2 for advanced or metastatic solid tumors. These results set the stage for new studies that combine OT-101, an antisense therapeutic targeting Transforming Growth Factor Beta 2 (TGFβ2), with checkpoint inhibitors ("CKIs") and recombinant IL-2 (aldesleukin) ("IL-2"). The Phase 1 trial (ClinicalTrials.gov ID: NCT04862767) investigated the safety and tolerability of OT-101 in combination with recombinant IL-2 in patients with advanced or metastatic solid tumors. The combination showed a tolerable safety profile at the planned dosing schedule, with no unexpected safety signals identified. Based on the favorable safety data, Oncotelic plans to advance OT-101 plus IL-2 into further clinical studies, exploring synergies with CKIs such as PD-1 blockers. The Company elected the fair value option under subsection of Section 825-10-15 to account for its equity-method investment as the Company believes that it the most appropriate method to properly value the Company and record a change in value when and upon conducting a fair value assessment. During the year ended December 31, 2023, and based on the results of the valuation study and the 45% ownership of the Company in GMP Bio, the Company had reported a change in fair value of the Company's investment in the JV of approximately $13,000 for the year December 31, 2023. As of September 30, 2025, as the operations of the JV are proceeding as planned, the Company assessed the fair value of its investment in the JV and determined that no change in the fair value is required until a triggering event has occurred, similar to, but not limited to, any fund raising event, entering into an IPO or any other major event enabling the Company to reassess the fair value of its investment in the JV.

A summary of the change in fair value of our investment in GMP Bio, as of September 30, 2025 and December 31, 2024 is shown below:

---

| | | |
|:---|:---|:---|
|  | **September 30, <br>2025** | **December 31, <br>2024** |
| Balance at January 1, 2025 and 2024 | $22653225 | $22653225 |
| Add: change in fair value of investment in GMP Bio | - | - |
| Balance at September 30, 2025 and December 31, 2024 | $22653225 | $22653225 |

---

For information on the various notes from GMP, refer to Note 5 – *GMP Notes* of the Notes to the Consolidated Financial Statements above.

**NOTE 7 – PRIVATE PLACEMENT -2 (PPM-2) AND JH DARBIE FUNDING**

During the period between July 2023 to January 2024, the Company entered into a series of subscription agreements with forty six accredited investors, whereby the Company issued and converted a total of 94 Units from a previous offering, which resulted in conversion of $2.35 million of old debt into new debt to the Company (the "*PPM-2 Financing*")The Company did not receive any cash proceeds through the PPM-2 Financing. Each of the new units under the PPM-2 Financing consisted of:

● One 16 % convertible unsecured promissory note of $25,000 , convertible into up to 250,000 shares of the Company's Common Stock, based on a conversion price of $0.10 per share, subject to standard anti-dilution protection.

● 250,000 warrants to purchase an equivalent number of shares of the Company's Common Stock at a strike price of $0.12 per share.

JH Darbie and the Company are parties to a March 2023 placement agent agreement ("Agreement") pursuant to which DH Darbie had the right to sell a minimum of 10 Units and a maximum of 200 Units on a best-efforts basis. For the 4 tranches of conversion related to PPM 2, placement agent fees of $377,500 were paid to JH Darbie. Based on the placement agent agreement, JH Darbie was entitled to a non-refundable $25,000 fee to start the due diligence process and 2% due diligence fees and 13% commissions on all subsequent conversions or new funding. In addition, the Company provided warrant coverage equal to 13 % of all of the units sold by JH Darbie, resulting in the issuance of 3,055,000 warrants to JH Darbie, exercisable over a two-year period. A total of 5 unit holders under the PPM-1 opted not to participate in the PPM-2.

In connection with the PPM-2 Financing, the Company entered into a Registration Rights Agreement granting certain registration rights with respect to the shares of the Company's Common Stock issued in connection with the PPM-2 Financing. The issuance of the Units is exempt from the registration requirements of the Securities Act of 1933, as amended ("Securities Act"), in reliance on the exemptions provided by Section 4(a)(2) of the Securities Act as provided in Rule 506 of Regulation D promulgated thereunder. The shares of common stock and warrants and any shares of common stock issuable upon exercise of the warrants, have not been registered under the Securities Act or any other applicable securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act.

As of September 30, 2025 and December 31, 2024, the PPM2 - JH Darbie Financing, net of debt discounts, consisted of the following amounts:

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br> **2025** | **December 31,<br> 2024** |
| **<u>Convertible promissory notes</u>** |  |  |
| PPM-2 Darbie Financing, inclusive of accrued interest, including related parties | $2414595 | $2308638 |
| Total PPM-2 Darbie Financing, net of discounts | $2414595 | $2308638 |

---

The Company incurred approximately $0.4 million of issuance costs under the PPM-2 and are incremental costs directly related to the issuance of the various instruments bundled in the offering. Concurrently with the sale of the Units, JH Darbie was granted a total of 3,055,000 stock warrants, exercisable over a two-year period.

Management reviewed the guidance per ASC 470-60 *Troubled debt restructurings* and ASC 470-50 *Debt-Modifications and Extinguishments* and concluded that the terms of the agreements were substantially different and, accounted for the transaction as a debt extinguishment. The transaction related to T4 resulted in a loss from debt extinguishment of approximately $88,000, which is presented in other expense in the consolidated statements of operations for the year ended December 31, 2024. The estimated volume weighted grant date fair value of approximately $0.026 per share associated with the warrants to purchase up to 3,390,000 shares of common stock issued in this offering, or a total of approximately $88,000 was recorded to additional paid-in capital. All warrants sold in this offering have an exercise price of $0.12 per share of the Company stock, subject to adjustment, are exercisable immediately and expire two years from the date of issuance. The fair value of the warrants was estimated using a Black Scholes valuation models using the following input values:

---

| | |
|:---|:---|
| Expected Term | 2 years |
| Expected volatility | 173% |
| Risk-free interest rate | 4.29% |
| Dividend | 0.00% |

---

The Company recorded approximately $318,000 as an initial debt discount related to the four tranches of PPM 2. The Company recognized amortization expense related to the debt discount and debt issuance costs of approximately $19,900 and $101,000 for the three and nine months ended September 30, 2025. The Company recognized amortization expense related to the debt discount and debt issuance costs of approximately $39,800 and $117,000 for the three and nine months ended September 30, 2024

During the nine months ended September 30, 2025, and 2024, the Company incurred approximately $276,000 and $270,000 of interest expense related to the convertible notes, respectively.

**NOTE 8 - RELATED PARTY TRANSACTIONS**

*Master Service Agreement with Autotelic Inc.*

In October 2015, Oncotelic entered into a Master Service Agreement (the "*MSA*") with Autotelic Inc., a related party that is partly-owned by the Company's CEO Vuong Trieu, Ph.D. Dr. Trieu, a related party, is a control person in Autotelic Inc. Autotelic Inc. currently owns less than 10% of the Company. The MSA stated that Autotelic Inc. would provide business functions and services to the Company and allowed Autotelic Inc. to charge the Company for these expenses paid on its behalf. The MSA includes personnel costs allocated based on amount of time incurred and other services such as consultant fees, clinical studies, conferences and other operating expenses incurred on behalf of the Company. The Company had minimally used the services under the MSA since the formation of the JV with Dragon. The MSA requires a 90-day written termination notice in the event either party requires to terminate such services.

Expenses related to the MSA were approximately $500 and $1,500 and for the three and nine months ended September 30, 2025 and 2024.

*License Agreement with Autotelic Inc.*

In September 2021, the Company entered into an exclusive License Agreement with Autotelic. For more information on the exclusive license Agreement with Autotelic, refer to our 2024 Annual Report on Form 10-K filed with SEC on April 15, 2025.

*Note Payable and Short-Term Loan – Related Parties*

In April 2019, the Company issued a convertible note to Dr. Trieu totaling $164,444, including OID of $16,444, receiving net proceeds of $148,000, which was used by the Company for working capital and general corporate purposes. The Company issued a Fall 2019 Note to Dr. Trieu in the principal amount of $250,000. Dr. Trieu also offset certain amounts due to him in the amount of $35,000 and was converted into the Fall 2019 debt. During the year ended December 31, 2020, Dr. Trieu purchased a total of 5 Units under the private placement for a gross total of $250,000. During the year ended December 31, 2023, Dr Trieu provided short term loan of $50 thousand to the Company. The balance due and payable to Dr. Trieu, as of September 30, 2025 and 2024, respectively, was $50,000.

As of January 1, 2024, approximately $1.5 million was outstanding and payable to Autotelic. During the year ended December 31, 2024 Autotelic Inc. provided additional short-term funding of approximately $0.6 million to the Company. In the nine months ended September 30, 2025 Autotelic Inc. provided additional short-term funding of $435,000 to the Company. As such, approximately $2.5 million was outstanding and payable to Autotelic at September 30, 2025.

In October 2025, Autotelic paid $162,500 to the ex-employee on behalf of the Company, in full and final settlement of the claim and counter claim to the ex-employee, with both parties not agreeing to any wrongdoing under both the claim and counter claim. Such amount was recorded as a short term loan payable to Autotelic.

*Artius Consulting Agreement*

In March 2020, the Company and Artius Bioconsulting, LLC ("*Artius*"), for which Mr. King is the Managing Member, entered into an amendment to an existing Consulting Agreement, under which Artius agreed to serve as a consultant to the Company for services related to the Company's business from time to time. For more information on this Agreement, refer to our 2024 Annual Report on Form 10-K filed with the SEC on April 15, 2025.

No expense was recorded during the nine months ended September 30, 2025 and 2024, respectively, related to this Agreement.

*Maida Consulting Agreement*

Effective May 5, 2020, the Company and Dr. Maida entered into an independent consulting agreement, commencing April 1, 2020, under which Dr. Maida will assist the Company in providing medical expertise and advice from time to time in the design, conduct and oversight of the Company's existing and future clinical trials. For more information on this Agreement, refer to our 2024 Annual Report on Form 10-K filed with the SEC on April 15, 2025.

Effective April 1, 2022, Dr Maida's compensation has been borne by the JV. No expense was recorded during the nine months ended September 30, 2025 and 2024, respectively, related to this Agreement.

*<u>Mosaic ImmunoEngineering, Inc.</u>*

In April 2024, the Company entered into a Term Sheet with Mosaic. For more information on the Term Sheet, refer to Note 1 of this Quarterly Report. Steven King, our Board member, is the CEO of Mosaic. The Company had advanced $40 thousand to Mosaic in accordance with the terms of the Term Sheet, and Mosaic has repaid the amount, with interest to the Company as of December 31, 2024. In addition, the Company, on behalf of our JV, had entered into an agreement with Mosaic to provide consulting services related to CMC activities for the JV. The expenses for these services have been paid for by the JV. As such, the Company has not recorded any expenses or accounts payable in this regard during the three and nine month periods ended September 30, 2025 or 2024.

**NOTE 9 - EQUITY PURCHASE AGREEMENT AND REGISTRATION RIGHTS AGREEMENT (PEAK ONE)**

On May 3, 2021, the Company entered into an Equity Purchase Agreement ("EPL") and Registration Rights Agreement with Peak One Opportunity Fund LP ("Peak One" or the "Investor"). For further information on EPL, refer to our 2023 Annual Report on Form 10-K filed with the SEC on April 12, 2024. The Company also filed a post-effective amendment to registration statement on Form S-1 with the Commission on April 12, 2024, and the Form S-1 was declared effective on April 21, 2025. The Company filed the prospectus under rule 424b3 with the SEC on April 29, 2025.

During the nine months ended September 30, 2025 and 2024, the Company did not sell any shares of Common Stock under the EPL.

**NOTE 10 - EQUITY PURCHASE AGREEMENT AND REGISTRATION RIGHTS AGREEMENT (MAST HILL)**

On August 1, 2025, the Company entered into an Equity Purchase Agreement ("EPA") and Registration Rights Agreement with Mast Hill Fund LP ("Mast Hill" or the "Investor"). Under the terms of the Equity Purchase Agreement, the Company issued warrants to purchase 3,350,000 shares of Common Stock to Mast Hill. Further, under the terms of the Equity Purchase Agreement, Mast Hill agreed to purchase from the Company up to $25,000,000 of the Company's Common stock upon effectiveness of a registration statement on Form S-1 filed with the U.S. Securities and Exchange Commission and subject to certain limitations and conditions set forth in the Equity Purchase Agreement. The Registration Rights Agreement provided that the Company would (i) file the registration statement with the SEC by October 1, 2025: and (ii) use its best efforts to have the registration statement declared effective by the Commission at the earliest possible date (in any event, within 90 after days after the execution date of the definitive agreements). The Company intends to file the registration statement on Form S-1 with the SEC as soon as possible.

Following effectiveness of the registration statement, and subject to certain limitations and conditions set forth in the Equity Purchase Agreement, the Company shall have the discretion to deliver put notices to the Investor and the Investor will be obligated to purchase shares of the Company's Common Stock based on the investment amount specified in each put notice. The minimum amount that the Company shall be entitled to put to the Investor in each put notice is $5,000 and the maximum amount is up to the lesser of $0.5 million or twenty percent (20%) of the average daily trading value of the Company's Common stock. Pursuant to the Equity Purchase Agreement, the Investor will not be permitted to purchase, and the Company may not put shares of the Company's Common Stock to the Investor that would result in the Investor's beneficial ownership of the Company's outstanding Common Stock exceeding 4.99%. The price of each put share shall be equal to the lesser of: (i) 97% of the lowest VWAP during the two (2) trading days immediately following the Clearing Date associated with a Put Notice (the "Valuation Period") or (ii) 102% of the lowest traded price during the Valuation Period (provided, however, that if a minimum price is specified and the common stock trades below the minimum price, then the purchase price under clause (ii) instead becomes equal to the minimum price specified in the relevant Put Notice). If a minimum price is specified by the Company in a Put Notice and the common stock trades at a price per share that is less than the minimum price during the Valuation Period then the number of shares with respect to such Put Notice shall automatically be reduced to the number of shares sold by the Selling Stockholder prior to the first time that the common stock traded below the minimum price during the Valuation Period.

In connection with the Equity Purchase Agreement, the Company issued 3,350,000 warrants to Mast Hill and recorded a fair value deferred finance cost of approximately $122,000.

**NOTE 11 - STOCKHOLDERS' EQUITY**

The following transactions affected the Company's Stockholders' Equity:

Issuance of Common Stock during the nine months ended September 30, 2025

In March 2025, Fourth Man partially converted approximately $68,000 of their debt, including accrued interest. In connection with the partial Note conversion, the Company issued 1,002,832 shares of Common Stock to Fourth Man.

In July 2025, the Company issued 2,250,000 shares of Common stock as commitment shares to Mast Hill as part of the secured convertible note purchase agreement.

In August 2025, the Company issued 20,322,930 shares of Common stock as service fees to Jefferson Capital as part of the independent contractor agreement. A copy of the independent contractor agreement was submitted to the SEC on a Current Report on Form 8-K on August 12, 2025.

In August 2025, the Company issued 4,064,586 shares of Common stock as service fee to Valor Nation as part of the independent contractor agreement. A copy of the independent contractor agreement was submitted to the SEC on a Current Report on Form 8-K on August 12, 2025.

In August 2025, Mast Hill partially converted approximately $264,000 of accrued interest. In connection with the partial Note conversion, the Company issued 3,860,000 shares of Common Stock to Fourth Man.

In September 2025, Fourth Man issued notice to the Company to partially convert approximately $44,000 of their debt, including accrued interest and fee of approximately $2,000. As the Company had received the request for conversion prior to close of business of the quarter ending September 30, 2025 and was obligated to issue such shares to Fourth Man, the Company recorded 656,082 shares of Common stock as 'Equity to be issued" to Fourth Man.

Issuance of Common Stock during the nine months ended September 30, 2024

In February 2024, Fourth Man partially converted $35,000 of their debt. In connection with the partial Note conversion, the Company issued 500,000 shares of Common Stock to Fourth Man.

In May 2024, Blue Lake converted the balance of their $531,000 debt, inclusive of accrued interest and penalty, into 7,605,760 shares of Common Stock of the Company.

**NOTE 12– STOCK-BASED COMPENSATION**

*Options*

Pursuant to the Merger, the Company's Common Stock and corresponding outstanding options survived. The below information details the Company's associated option activity.

As of September 30, 2025, the Company had options to purchase Common Stock that were outstanding under three stock option plans – the 2017 Equity Incentive Plan (the "*2017 Plan*"), the 2015 Equity Incentive Plan (the "*2015 Plan*") and the 2005 Stock Plan (the "*2005 Plan*"). No further awards may be granted under the 2005 Plan, although options previously granted remain outstanding in accordance with their terms. Under the 2017 Plan, up to 2,000,000 shares of the Company's Common Stock may be issued to directors, officers, employees or consultants pursuant to awards granted in the form of nonqualified stock options, restricted and unrestricted stock awards, and other stock-based awards. Under the 2015 and 2005 Plans, taken together, up to 27,250,000 shares of the Company's Common Stock may be issued pursuant to awards granted in the form of incentive stock options, nonqualified stock options, restricted and unrestricted stock awards, and other stock-based awards

Compensation based stock option activity for qualified and unqualified stock options are summarized as follows:

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| | | |
|:---|:---|:---|
| <br>**For the nine months ended September 30, 2025** |<br>**Shares** | **Weighted**<br>**Average**<br>**Exercise Price** |
| Outstanding at January 1, 2025 | 24177761 | $0.21 |
| Expired or cancelled | (375000) | - |
| Outstanding at September 30, 2025 | 23802761 | 0.15 |
| Options exercisable at September 30, 2025 | 13610261 | 0.18 |

---

---

| | | |
|:---|:---|:---|
| <br>**For the nine months ended September 30, 2024** |<br>**Shares** | **Weighted**<br>**Average**<br>**Exercise Price** |
| Outstanding at January 1, 2024 | 24177761 | $0.21 |
| Expired or cancelled | - | - |
| Outstanding at September 30, 2024 | 24177761 | 0.21 |
| Options exercisable at September 30, 2024 | 13985261 | 0.10 |

---

The following table summarizes information about options to purchase shares of the Company's Common Stock outstanding and exercisable at September 30, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Exercise prices** | **Outstanding**<br> **Options**  | **Weighted-**<br> **Average**<br> **Remaining Life**<br> **In Years**  | **Weighted-**<br> **Average**<br> **Exercise**<br> **Price**  | **Number**<br> **Exercisable**  |
| $0.1 to $0.15 | 16250000 | 6.46 | $0.12 | 6057500 |
| 0.16 to $0.21 | 5502761 | 5.77 | 0.16 | 5502761 |
| 0.22 to $0.37 | 1550000 | 2.21 | 0.28 | 1550000 |
| 0.38 to $0.72 | 500000 | 0.47 | 0.73 | 500000 |
|  | 23802761 | 5.90 | $0.15 | 13610261 |

---

The compensation expense attributed to the issuance of the options is recognized as they are vested. The employee stock option plan stock options are generally exercisable for ten years from the grant date and vest over various terms from the grant date to three years.

As of September 30, 2025, there was no unamortized stock compensation cost related to the stock options granted during the year as the stock options granted during the year ended December 31, 2023 are considered vested. Of the approximately 10 million unvested stock options, the vesting criteria for 7.3 million options is still being evaluated as on the date of this Report, as those options are subject to individual milestone achievements. For more information on the stock options, refer to our 2024 Annual Report on Form 10-K filed with the SEC on April 15, 2025.

The Company amortized $0 stock compensation expense during the nine months ended September 30, 2025 and 2024 on previously issued grants.

*Warrants*

The Company has issued warrants in connection with the various financings conducted by the Company. For more information on the prior warrant issuances, refer our 2024 Annual Report on Form 10-K filed with the SEC on April 15, 2025.

The issuance of warrants to purchase shares of the Company's Common Stock, including those attributed to debt issuances, as of September 30, 2025 and 2024 are summarized as follows:

---

| | | |
|:---|:---|:---|
| <br>**For the nine months ended September 30, 2025** |<br>**Shares** | **Average**<br>**Exercise Price** |
| Outstanding at January 1, 2025 | 31890289 | $0.13 |
| Issued during the nine months ended September 30, 2025 | 5350000 | 0.15 |
| Outstanding at September 30, 2025 | 37240289 | $0.13 |

---

---

| | | |
|:---|:---|:---|
| <br>**For the nine months ended September 30, 2024** |<br>**Shares** | **Average**<br>**Exercise Price** |
| Outstanding at January 1, 2024 | 61500355 | $0.15 |
| Issued during the nine months ended September 30, 2024 | 3390000 | 0.12 |
| Exercised / cancelled during the nine months ended September 30, 2024 | (33000066) | 0.15 |
| Outstanding at September 30, 2024 | 31890289 | $0.13 |

---

The following table summarizes information about warrants outstanding and exercisable at September 30, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Outstanding and exercisable** | **Outstanding and exercisable** | **Outstanding and exercisable** | **Outstanding and exercisable** |
|<br><br>**Exercise Price** |<br>**Number**<br>**Outstanding** | **Weighted-**<br>**Average**<br>**Remaining Life**<br>**in Years** | **Weighted-**<br>**Average**<br>**Exercise**<br>**Price** |<br>**Number**<br>**Exercisable** |
| $0.13 | 961539 | 1.25 | 0.13 | 961539 |
| 0.20 | 4373750 | 1.51-1.73 | 0.20 | 4373750 |
| 0.12 | 26555000 | 0.25 | 0.12 | 26555000 |
| 0.15 | 5350000 | 4.84 | 0.15 |  |
|  | 37240289 | 1.10 | $0.13 | 37240289 |

---

**NOTE 13 – COMMITMENTS AND CONTINGENCIES**

*Leases*

Currently, the Company is leasing the office located at 29397 Agoura Road, Suite 107, Agoura Hills, CA 91301 on a month-to-month basis until such time a new office is identified. The Company believes the office is sufficient for its current operations.

*PointR Merger Contingent Consideration*

The total purchase price in the PointR Merger of $17,831,427 included $2,625,000 of contingent consideration of shares issuable to PointR shareholders, upon achievement of certain milestones. For more information on the PointR Merger Contingent Consideration, refer to our 2024 Annual Report on Form 10-K filed with the SEC on April 15, 2025.

*Other claims*

From time to time, the Company may become involved in certain claims arising in the ordinary course of business.

During the year ended December 2022, a former employee brought suit for breach of employment contract claim against the Company in Honorable Supreme Court of California. The Company filed a counter claim. A liability of $162,500 million was recorded related to this claim. The litigation was settled in October 2025. See Note 14.

**NOTE 14 – SUBSEQUENT EVENTS**

As previously disclosed in Note 13 above, in October 2025, the Company settled the outstanding litigation with the ex-employee. In connection with the settlement, Autotelic paid $162,500, for a complete release of claims, on behalf of the Company. The Company has recorded such payment as a debt from Autotelic.

In October 2025, the Company partially converted approximately $44,000 of their debt, including accrued interest, and fee of approximately $2,000 under the Fourth Man Note. In connection with the conversion, the Company issued 663,608 shares of its Common Stock to Fourth Man.

In November 2025, the Company partially converted approximately $45,000 of their debt, including accrued interest, and fee of approximately $2,000 under the Fourth Man Note. In connection with the conversion, the Company issued 668,748 shares of its Common Stock to Fourth Man.

On November 17, 2025, the Company entered into a restricted stock agreement with Dr. Trieu, our CEO and a related party, to provide incentive compensation for his extra-ordinary efforts and time to raise capital and successful achievement of certain milestones. The restricted stock agreement provides for a grant of up to 24,387.516 shares of our unissued Series A Convertible Preferred Stock, par value $0.01 ("*Preferred Stock*"), subject to achievement of certain milestones, namely (1) on the signing July 2025 Mast Note – 4,065 shares of Preferred Stock: (2) the Company achieving a market capitalization exceeding $100 million on any single trading day's close – 8,131 shares of Preferred Stock; (3) the Company achieving a cumulative increase of at least $10 million in shareholder equity from the start of engagement (as reported in SEC filings) - 8,131,000 shares of Preferred Stock; and (4) a successful uplisting to a U.S. national exchange, with at least one full day of trading- 4,062.516 Shares of Preferred Stock. Each share of Preferred Stock is convertible into 1,000 shares of the Company's Common Stock, and votes with the Common Stock on an as converted basis. The Board of Directors has approved the entry into the restricted stock agreement, a copy of which is being filed as an exhibit to this report.

On November 13, the Board approved a grant of 1,818,182 shares of our Common Stock to Out the Box Capital, Inc. ("*OTB*") in lieu of certain marketing services at a cost of $200,000. Such shares will be issued as unregistered shares.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of

Oncotelic Therapeutics, Inc.

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheet of Oncotelic Therapeutics, Inc. and Subsidiaries (the Company) as of December 31, 2024 and 2023, and the related consolidated statements of operations, stockholders' equity, and cash flows for each of the years in the two-year period ended December 31, 2024, and the related notes (collectively referred to as the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2024 and December 31, 2023, and the consolidated results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.

**Going Concern Uncertainty**

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the consolidated financial statements, the Company has suffered recurring losses from operations and has an accumulated deficit and a working capital deficiency that raise substantial doubt about its ability to continue as a going concern. Management's plans regarding these matters are also described in Note 1. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Basis for Opinion**

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion.

**Critical Audit Matters**

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which it relates.

**Evaluation of Goodwill for Impairment**

*<u>Description of the Matter</u>*

 

As discussed in Note 2 and 3 to the consolidated financial statements, reporting unit goodwill is tested for impairment at least annually or when events or circumstances indicate the fair value of a reporting unit may be below its carrying value. This analysis involves comparing events and circumstances such as general macroeconomic conditions, conditions specific to the industry and market and whether there has been sustained declines in share price. These fair value estimates are sensitive to significant assumptions and judgments, such as projections of operating expenditures, discount rates, and future economic conditions.

The Company has experienced a sustained decrease in its share price, and as of December 31, 2024, the Company's market capitalization and uncertain economic conditions, which adversely impacted the pharmaceutical and biotechnology industry, were indicative of an impairment. Pursuant to current accounting guidance, management performed a quantitative analysis and concluded that goodwill was impaired and the Company recorded impairment charges of approximately $3.2 million during the year ended December 31, 2024. At December 31, 2024, the Company's goodwill balance was approximately $2.8 million.

Auditing management's annual impairment tests for goodwill was complex because of the significant judgment required to evaluate the management assumptions described above used to determine the fair value of the reporting units.

*<u>How We Addressed the Matter in our Audi</u>*

Our audit procedures related to the evaluation of goodwill for impairment included the following, among others:

&nbsp;&nbsp;&nbsp;&nbsp;1. We
 evaluated managements significant accounting policies related to the impairment of goodwill and indefinite-lived intangible assets
 for reasonableness.

2. We
 evaluated management's assessment of qualitative factors relating to the goodwill valuation by reviewing information regarding
 economic growth forecast, industry outlook, and business environment, as well as accumulating our understanding of the Company's
 reporting unit's performance.

3. With
 respect to the Company's valuation of its sole reporting unit:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. We
 assessed the qualifications and competence of management

b. We
 evaluated the methodologies used to determine the fair value of the Company's reporting unit

c. We
 reperformed management's quantitative analysis to assess the impact of goodwill impairment

&nbsp;&nbsp;&nbsp;&nbsp;4. We
 assessed the adequacy of the Company's disclosures regarding impairment assessments included in Note 2 and Note 3.

**Evaluation of Investment in GMP Bio at Fair Value**

*<u>Description of the Matter</u>*

As discussed in Note 6 to the consolidated financial statements, the Company holds a 45% non-controlling interest in GMP Bio. The Company determined that it did not control the activities of GMP Bio but that it did have significant influence over GMP Bio. As a result, the Company accounted for its investment using the equity method of accounting. During 2022, the year GMP Bio was formed, the Company elected the fair value option under FASB ASC 825 relating to the accounting for its equity method investment in GMP Bio. The Fair Value Option requires management to adjust the carrying value of the investment in GMP Bio to fair value each reporting period.

Auditing management's estimate of fair value was complex because of the significant judgment required to evaluate management's assumptions used to determine the fair value of its investment in GMP Bio.

*<u>How We Addressed the Matter in our Audit</u>*

Our audit procedures related to the evaluation of the fair value of the investment in GMP Bio included the following, among others:

&nbsp;&nbsp;&nbsp;&nbsp;1. We
 evaluated the appropriateness of managements significant accounting policies related to the fair value of investments.

&nbsp;&nbsp;&nbsp;&nbsp;2. We
 inquired of management of the Company and of GMP Bio regarding clinical activities, capital fundraising, and budget to actual assessments
 for GMP Bio's operations.

&nbsp;&nbsp;&nbsp;&nbsp;3. With
 respect to the Company's valuation of its investment in GMP Bio:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. We
 assessed the qualifications and competence of management

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. We
 evaluated the methodologies used to determine the fair value of the Company's investment in GMP Bio

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. We
 considered the results of our inquiries and review of financial data of GMP Bio to assess the reasonableness of management's
 assumptions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. We
 considered whether there were any events that would contradict management's assumptions

Rose, Snyder & Jacobs LLP

We have served as the Company's auditor since 2021.

Encino, CA

April 15, 2025

**ONCOTELIC THERAPEUTICS, INC. AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2024** | **December 31,**<br>**2023** |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash | $86128 | $170405 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | 20000 | 20000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 18976 | 18976 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid & other current assets | 9107 | 62356 |
| Total current assets | 134211 | 271737 |
| In process R&D | 1101760 | 1101760 |
| Goodwill, net | 2788230 | 5988230 |
| Investment in GMP Bio at fair value | 22653225 | 22653225 |
| **Total assets** | $**26677426** | $**30014952** |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | $2437167 | $2437321 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable - related party | 346057 | 344099 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contingent Consideration | 2625000 | 2625000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative liability on notes | 703616 | 423214 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Convertible and short-term debt, net of costs | 9790866 | 8066957 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Convertible debt and short-term debt - related party, net of costs | 3297208 | 2608356 |
| Total current liabilities | 19199914 | 16504947 |
| Convertible long-term debt, net of costs | - | 1898468 |
| &nbsp;&nbsp;&nbsp;Total liabilities | 19199914 | 18403415 |
| Commitments and contingencies (Note 13) |  |  |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock, $.01 par value; 750,000,000 shares authorized; 407,289,618 and 399,184,128 issued and outstanding, respectively | 4072899 | 3991839 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 42219400 | 41655026 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (38040668) | (33516736) |
| Total Oncotelic Therapeutics, Inc. stockholders' equity | 8251631 | 12130129 |
| Non-controlling interests | (774119) | (518592) |
| Total stockholders' equity | 7477512 | 11611537 |
| **Total liabilities and stockholders' equity** | $**26677426** | $**30014952** |

---

The accompanying footnotes are an integral part of these consolidated financial statements.

**ONCOTELIC THERAPEUTICS, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF OPERATIONS** 

---

| | | |
|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2024** | **2023** |
| Service Revenue | $- | $70000 |
| Total Revenue |  | 70000 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development | $- | $61143 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 376013 | 573726 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill impairment (See note 2 and 3) | 3200000 | 6083146 |
| Total operating expenses | 3576013 | 6718015 |
| Income/(Loss) from operations | (3576013) | (6648015) |
| Other income (expense): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense, net | (857723) | (1044786) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reimbursement for expenses - related party | 22937 | 72246 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of investment in GMP Bio |  | 12706 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of derivative on debt | (280402) | (225074) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on debt conversion | (88258) | (373142) |
| Total other income (expense) | (1203446) | (1558050) |
| Net income (loss) before non-controlling interests | (4779459) | (8206065) |
| Net loss attributable to non-controlling interests | (255527) | (302972) |
| Net income (loss) attributable to Oncotelic Therapeutics, Inc. | $(4523932) | $(7903093) |
| Basic net loss per share attributable to common stock | $(0.01) | $(0.02) |
| Basic weighted average common stock outstanding | 404396473 | 384075369 |

---

The accompanying footnotes are an integral part of these consolidated financial statements.

**ONCOTELIC THERAPEUTICS, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY**

**FOR THE YEAR ENDED DECEMBER 31, 2024**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Preferred Stock** | **Preferred Stock** | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Additional<br> Paid-in**<br>**Capital** | **Accumulated**<br>**Deficit** | **Non-controlling**<br>**Interests** | **Stockholders'**<br>**Equity** |
| **Balance at January 1, 2024** |  | $- | 399184128 | 3991839 | 41655026 | (33516736) | (518592) | $&nbsp;&nbsp;&nbsp;&nbsp; 11611537 |
| Common shares issued in connection with debt conversion |  |  | 8105760 | 81060 | 564374 |  |  | 645434 |
| Net Loss |  |  | **-** | **-** | **-** | (4523932) | (255527) | (4779459) |
| **Balance as of December 31, 2024** |  | $**-** | **407289888** | $**4072899** | $**42219400** | $**(38040668)** | $**(774119)** | $**7477512** |

---

The accompanying footnotes are an integral part of these consolidated financial statements.

**ONCOTELIC THERAPEUTICS, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY**

**FOR THE YEAR ENDED DECEMBER 31, 2023**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Preferred Stock** | **Preferred Stock** | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Additional Paid-in**<br>**Capital** | **Accumulated**<br>**Deficit** | **Non controlling**<br>**Interests** | **Stockholders'**<br>**Equity** |
| **Balance at January 1, 2023** |  |  | 391846880 | $3918469 | $41416632 | $(25926069) | $(215620) | $19193412 |
| Adoption of ASU 2020-06 |  |  |  |  | (521749) | 312426 |  | (209323) |
| Common shares issued in connection with debt conversion |  |  | 7337248 | 73370 | 431559 |  |  | 504929 |
| Loss on extinguishment of PPM debt |  |  |  |  |  |  |  |  |
| Warrants issued with convertible notes |  | - |  |  | 328584 |  |  | 328584 |
| Net Loss |  | - | - | - | - | (7903093) | (302972) | (8206065) |
| **Balance as of December 31, 2023** |  | $**-** | **399184128** | $**3991839** | $**41655026** | $**(33516736)** | $**(518592)** | $**11611537** |

---

The accompanying footnotes are an integral part of these consolidated financial statements.

**ONCOTELIC THERAPEUTICS, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

---

| | | |
|:---|:---|:---|
|  | **For the Twelve Months Ended December 31,** | **For the Twelve Months Ended December 31,** |
|  | **2024** | **2023** |
| Cash flows from operating activities: |  |  |
| Net income (loss) | $(4779459) | $(8206065) |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |  |
| Goodwill impairment | 3200000 | 6083146 |
| Amortization of debt discount and deferred finance costs | 122141 | 301917 |
| Change in fair value of investment in GMP Bio |  | (12706) |
| Loss on debt conversion | 88258 | 373142 |
| Write off accounts receivable |  | 772 |
| Change in fair value of derivative | 280402 | 225074 |
| Changes in operating assets and liabilities: |  |  |
| Prepaid expenses and other current assets | 53249 | (40392) |
| Accounts payable and accrued expenses | 293184 | (72771) |
| Accounts payable to related party | 1958 | 26836 |
| Net cash provided by (used in) operating activities | (740267) | (1321047) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from / (repayment to) private placement |  | (125000) |
| &nbsp;&nbsp;&nbsp;Proceeds from short term loans, others | 656000 | 1410000 |
| &nbsp;&nbsp;&nbsp;Repaid to others | - | (35000) |
| Net cash provided by financing activities | 656000 | 1250000 |
| Net increase (decrease) in cash | (84267) | (71047) |
| Cash and restricted cash - beginning of period | 190405 | 261452 |
| Cash and restricted cash - end of period | $106128 | $190405 |
| Supplemental cash flow information: |  |  |
| Cash paid for: |  |  |
| Interest paid | 365940 | $390561 |
| Income taxes paid | 1600 | $1600 |
| Common shares issued upon partial conversion of debt | 645434 | $504929 |

---

The accompanying footnotes are an integral part of these consolidated financial statements.

**ONCOTELIC THERAPEUTICS, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 1 – DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION**

*Description of Business*

 

Oncotelic Therapeutics, Inc. ("*Oncotelic*"), was formed in the State of New York in 1988 as OXiGENE, Inc., was reincorporated in the State of Delaware in 1992, and changed its name to Mateon Therapeutics, Inc. in 2016, and Oncotelic Therapeutics, Inc. in November 2020. Oncotelic conducts business activities through Oncotelic and its wholly owned subsidiaries, Oncotelic, Inc., a Delaware corporation, PointR Data, Inc. ("*PointR*"), a Delaware corporation; Pet2DAO, Inc ("*Pet2DAO*") and EdgePoint AI, Inc. ("*Edgepoint"*), a Delaware Corporation for which there are non-controlling interests, (Oncotelic, Oncotelic Inc., PointR, Pet2DAO and Edgepoint are collectively called the "*Company*" or "*We*"). The Company completed a reverse merger with Oncotelic Inc in April 2019, a merger with PointR in November 2019 and formed a subsidiary Edgepoint in February 2020. For more information on these mergers, refer to our 2023 Annual Report on Form 10-K filed with the SEC on April 14, 2024.

The Company is currently developing OT-101, through its joint venture (*"JV"*) with Dragon Overseas Capital Limited ("*Dragon"*) and GMP Biotechnology Limited (*"GMP Bio"*), both affiliates of Golden Mountain Partners ("*GMP*"), for various cancers and COVID-19, Artemisinin for COVID-19 and AI technologies for clinical development and manufacturing. The JV is also developing 5 additional compounds, which if approved, are anticipated to be significant value contributors for the JV, as well as the Company. The Company is also, independently, planning to develop OT-101 for certain animal health indications and contemplating using crypto currencies for that platform. The Company has acquired apomorphine for Parkinson's Disease, erectile dysfunction and female sexual dysfunction. In addition, the Company is evaluating the further development of its product candidates OXi4503 as a treatment for acute myeloid leukemia and myelodysplastic syndromes and CA4P in combination with a checkpoint inhibitor for the treatment of advanced metastatic melanoma.

The Company is primarily a cancer immunotherapy company dedicated to the development of first in class self-immunization protocol ("*SIP*™") candidates for difficult to treat cancers. The Company's proprietary SIP™ candidates are expected to offer advantages over other immunotherapies because they do not require extraction of the tumor or isolation of the antigens, and they have the potential for broad-spectrum applicability for multiple cancer types. The Company's proprietary product candidates have shown promising clinical activity in phase 2 trials for the treatment of gliomas and pancreatic cancers. The Company aims to translate its unique insights, which span more than three decades of original work using RNA therapeutics, into the deployment of antisense as a RNA therapeutic for diseases which are caused by TGF-β overexpression, starting with cancer and expanding to Duchenne Muscular Dystrophy ("*DMD*") and others. OT-101, is being developed as a broad-spectrum anti-cancer drug that can also be used in combination with other standard cancer therapies to establish an effective multi-modality treatment strategy for difficult-to-treat cancers. Further, The JV is also developing 5 additional compounds, which if approved, are anticipated to be significant revenue and value contributors for the JV as well as the Company. The JV plans to initiate phase 2 and 3 clinical trials for OT-101 in both high-grade glioma and pancreatic cancer, and any other indications that may evolve, for human pharmaceutical needs. The JV may also be sponsoring investigator-initiated studies for OT-101 for other oncology indications. The Company is evaluating the further development of its product candidates OXi4503, as a treatment for acute myeloid leukemia and myelodysplastic syndromes, and CA4P, in combination with a checkpoint inhibitor for the treatment of advanced metastatic melanoma. The JV is also developing OT-101 for the various epidemics and pandemics, similar to the corona virus ("*COVID-19*") pandemic. In this connection, the Company entered into an agreement and supplemental agreement with GMP for a total of $1.2 million to render services and was paid for the development of OT-101. For more information on GMP and Artemisinin, refer to our 2023 Annual report on Form 10- K filed with the SEC on April 12, 2024.

*Fundraising*

 

<u>Private Placement 2 & JH Darbie Financing</u>

Between July 2023 and September 2023, the Company entered into a series of subscription agreements with 15 accredited investors which resulted in a conversion of a gross amount of $1.0 million, consisting of 40 notes, under the prior JH Darbie Financing into new debt to the Company. JH Darbie and the Company are parties to a March 2023 placement agent agreement ("Agreement") pursuant to which JH Darbie has the right to sell/convert a minimum of 10 Units and a maximum of 200 Units on a best-efforts basis. Further, in October 2023, the Company entered into a series of subscription agreements with 27 accredited investors which resulted in a conversion of a gross amount of $1.05 million, consisting of 42 notes, under the prior JH Darbie Financing into new debt to the Company. Additionally, in January 2024, Company entered into a series of subscription agreements with 4 accredited investors which resulted in a conversion of a gross amount of $0.3 million, consisting of 12 notes. The July 2023, October 2023 and January 2024 conversions fully converted JH Darbie PPM-1 notes into PPM-2 notes. For more information on the new JH Darbie Financing, refer to Note 8 of these Notes to the Consolidated Financial Statements.

<u>J.H. Darbie Financing Notes & Issuance of Oncotelic Warrants</u>

In February 2022, the Company and 99 out of 100 of the Investors agreed to extend the maturity date of the notes connected to the Units from March 31, 2022 to March 31, 2023. In addition, the Company issued approximately 33 million warrants to purchase $50,000 of shares of common stock of the Company ("Common Stock') in connection with agreeing to extend the maturity date by one year. The issuance of the additional warrants resulted in the Company recording an expense of approximately $2.9 million in the Company's statement of operations during the year ended December 31, 2022. The approximately 33 million warrants to purchase shares of our Common Stock expired on March 31, 2024. For more information on the JD Darbie financing, refer to Note 7 of these unaudited Notes to the Consolidated Financial Statements.

<u>Equity Purchase Agreement</u>

In May 2021, the Company entered into an Equity Purchase Agreement (the "*EPL*") and Registration Rights Agreement (the "*Registration Rights Agreement*") with Peak One Opportunity Fund, L.P. ("*Peak One*"), pursuant to which the Company shall have the right, but not the obligation, to direct Peak One to purchase up to $10.0 million (the "*Maximum Commitment Amount*") in shares of the common stock, par value $0.01 per share ("*Common Stock*") in multiple tranches. The Company filed a post-effective amendment for the EPL on April 12, 2024 with the SEC and the SEC has made the post-effective amendment effective on April 22, 2024. The Company filed a prospectus under rule 424b3 with the SEC on April 26, 2024. For more information on the EPL, refer to Note 10 of the Notes to the Unaudited Consolidated Financial Statements.

<u>August 2021 Notes</u>

In August 2021, the Company issued Note Purchase Agreements with Autotelic Inc., the Company's Chief Financial Officer ("*CFO*"), and certain other accredited investors. Under the terms of the Note Purchase Agreements, the Company issued an aggregate of $698,500 (the "*Principal Amount*") in debt in the form of unsecured convertible promissory notes (collectively, the *"Notes"*). The Notes are unsecured, and provide for interest at the rate of 5% per annum. Such Notes were issued against some of the short-term debt due as of June 30, 2021. For more information on the debt financing of the Company, refer to Note 5 of the Notes to the Consolidated Financial Statements.

<u>November/December 2021 and March 2022 Notes</u>

In November / December 2021, the Company entered into various Securities Purchase Agreements with Talos Victory Fund, LLC (the ("Talos"), Mast Hill Fund, LP ("Mast"), FirstFire Global Opportunities Fund, LLC ("FirstFire"), Blue Lake Partners, LLC ("Blue Lake") and Fourth Man, LLC ("Fourth Man"), pursuant to which the Company issued convertible promissory notes in the aggregate principal amount of $0.25 million each, aggregating gross $1.25 million (the "Notes"), and which Notes were convertible into shares of the Company's common stock, par value $0.01 per share ("Common Stock"). In June 2022, Mast fully converted their November 2021 Note, for which the company issued 4,025,000 shares of Common Stock. Further, during the year ended December 31, 2023, the Company fully converted the balance of Fourth Man convertible note of approximately $127,000 into 1,820,395 shares of the Company's common stock, which fully retired the convertible note as of December 31, 2024.

In March 2022, the Company entered into a Securities Purchase Agreement with Fourth Man, pursuant to which the Company issued convertible promissory note in the aggregate principal amount of $0.25 million, which Note is convertible into shares of the Company's Common Stock. As of December 31, 2024, this note is in default and available for conversion into the Company's Common Stock due to cross default provision contained in November / December 2021 Notes. During the year ended December 31, 2024, Fourth Man converted a portion of the March 2022 debt, including interest, and conversion fee, of approximately $35,000 for 500,000 shares of the Company's Common Stock.

For more information on the debt financing of the Company, refer to Note 5 of the Notes to the Consolidated Financial Statements.

<u>May 2022 Note</u>

In May 2022, the Company entered into a Securities Purchase Agreement with Mast, pursuant to which the Company issued convertible promissory notes in the aggregate principal amount of $0.6 million, which note is convertible into shares of the Company's Common Stock. In May 2024, the May 2022 Note was extended till May 2025, at a cost of 10% of the outstanding Note amount, including interest and penalty. For more information on the debt financing of the Company, refer to Note 5 of the Notes to the Consolidated Financial Statements.

<u>June 2022 Note</u>

In June 2022, the Company entered into a Securities Purchase Agreement with Blue Lake, pursuant to which the Company issued convertible promissory notes in the aggregate principal amount of $0.34 million, which note is convertible into shares of the Company's Common Stock. During the year ended December 31, 2024, Blue Lake converted the balance of their debt, including accrued interest and penalty, of approximately $531,000 for approximately 7.6 million shares of the Company's Common Stock.

For more information on the debt financing of the Company, refer to Note 5 of the Notes to the Consolidated Financial Statements.

<u>Forever Prosperity (previously GMP) Note purchase agreements and unsecured notes</u>

Between June 2020 and January 2022, the Company entered into various purchase agreements and promissory notes with GMP, cumulatively totaling $4.5 million. Such notes were assigned to Forever Prosperity, LLC, an affiliated entity of GMP.

For more information on the GMP debt financing, refer to Note 5 of the Notes to the Consolidated Financial Statements.

<u>Joint Venture with GMP Bio</u>

In March 2022, the Company formalized a joint venture (*"JV"*) with Dragon Overseas Capital Limited ("*Dragon"*) and GMP Biotechnology Limited (*"GMP Bio"*), both affiliates of GMP. Although no assurances can be given, the Company and GMP currently intend to conduct an initial public offering of the JV, at a future date, on either the Hong Kong Exchange or other stock exchange.

For more information on the JV, refer to Note 6 of the Notes to the Consolidated Financial Statements.

<u>Pet2DAO</u>

In November 2022, the Company formed a Decentralized autonomous organization ("*DAO*") entity, Pet2DAO LLC ("*Pet2DAO*"), as a wholly owned subsidiary.

For more information on Pet2DAO, refer to our 2023 Annual Report on Form 10-K filed with the SEC on April 12, 2024.

<u>Mosaic ImmunoEngineering, Inc. Term Sheet</u>

In April 2024, the Company entered into a binding term sheet (the "Term Sheet") with Mosaic ImmunoEngineering, Inc. ("*Mosaic*"). For more information on the Term Sheet, refer to the Current Report on Form 8-K filed with the SEC on April 29, 2024. In August 2024, Mosaic and the Company mutually agreed to extend the date of the Term Sheet to expire at the earlier of (1) the signing of definitive agreements or (2) December 31, 2024. In December 2024, he Company and Mosaic further extended the term of the term-sheet to expire at the earlier of (1) the signing of definitive agreements or (2) June 30, 2025. This was to allow for both Companies to complete due diligence as well as agree and finalize the definitive agreements. The Company had advanced $40 thousand to Mosaic in accordance with the terms of the Term Sheet, and Mosaic has repaid the amount, with interest to the Company as of December 31, 2024.

 

*Licensing Agreement with Autotelic Inc.*

 

In September 2021, the Company entered into an exclusive License Agreement (the "*Agreement*") with Autotelic, Inc. ("*Autotelic*"). For more information on the Agreement, refer to our 2023 10-K filed with the SEC on April 12, 2024.

*Principles of Consolidation*

 

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Oncotelic, PointR and Edgepoint for which there are non-controlling interests. Intercompany accounts and transactions have been eliminated in consolidation.

*Liquidity and Going Concern*

 

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred net losses of approximately $38 million since inception of Oncotelic Inc. as the Company's historical financial statements before the Merger have been replaced with the historical financial statements of Oncotelic Inc. prior to the Merger in the financial statements and filings. The Company also has a negative working capital of approximately $19.1 million at December 31, 2024, of which approximately $2.6 million contingent liability of issuance of common shares of the Company to PointR shareholders upon achievement of certain milestones in accordance with the PointR Merger Agreement. The Company has negative cash flows from operations for the year ended December 31, 2024 of approximately $0.7 million. These conditions raise substantial doubt about the Company's ability to continue as a going concern for a period of one year from the date of this filing. Management expects to incur significantly lower costs and losses in the foreseeable future, as a majority of the costs related with the development of OT-101 will be incurred by the JV, but the Company also recognizes the need to raise capital to remain viable. The accompanying consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.

The Company's long-term plans include continued development of its current pipeline of products, in addition to continue the development of OT-101 which is exclusively out-licensed to the JV and the JV will be responsible for the funding required to support the development in entirety, to generate sufficient revenues, through either technology transfer or product sales, or raise additional financing to cover its anticipated expenses. Until the Company is able to generate sufficient revenues from its current pipeline, the Company plans on funding its operations through the sale of equity and/or the issuance of debt, combined with or without warrants or other equity instruments. The Company obtained short term loans of approximately $0.6 million from Autotelic Inc., a related party, during the year ended December 31, 2024. In addition, the Company obtained a short-term loan of $41 thousand from Amit Shah, it's CFO during year ended December 31, 2024.

Although no assurances can be given as to the Company's ability to deliver on its revenue plans, or that unforeseen expenses may arise, management believes that the potential equity and debt financing or other potential financing will provide the necessary funding for the Company to continue as a going concern. Also, management cannot guarantee any potential debt or equity financing will be available on favorable terms or at all. As such, management does not believe the Company has sufficient cash for 12 months from the date of this report. If adequate funds are not available on acceptable terms, or at all, the Company will need to curtail operations, or cease operations completely.

**NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

*Use of Estimates*

 

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, equity-based transactions and disclosure of contingent liabilities at the date of the financial statements and revenues and expense during the reporting period. Actual results could materially differ from those estimates.

The Company believes the following critical accounting policies affect its more significant judgments and estimates used in the preparation of the financial statements. Significant estimates include the valuation of goodwill and intangible assets for impairment, deferred tax asset and valuation allowance, and fair value of financial instruments.

*Cash*

 

As of December 31, 2024 and 2023, respectively, the Company held all its cash in banks in the United States of America. The Company considers investments in highly liquid instruments with a maturity of three months or less to be cash equivalents. The Company did not have any cash equivalents as of December 31, 2024 and 2023, respectively. Restricted cash consists of certificates of deposits held at banks as collateral for various purposes.

*Debt issuance Costs and Debt discount*

 

Issuance costs are specific incremental costs that are (1) paid to third parties and (2) directly attributable to the issuance of a debt or equity instrument. The issuance costs attributable to the initial sale of the instrument are offset against the associated proceeds in the determination of the instrument's initial net carrying amount.

Debt issuance costs and debt discounts are being amortized over the lives of the related financings on a basis that approximates the effective interest method. Costs and discounts are presented as a reduction of the related debt in the accompanying balance sheets if related to the issuance of debt or presented as a reduction of additional paid in capital if related to the issuance of an equity instrument. The Company applies the relative fair value to allocate the issuance costs among freestanding instruments that form part of the same transaction.

If the Company amends the terms of its convertible notes, the Company reviews and applies the guidance per ASC 470-60 *Troubled debt restructurings* and ASC 470-50 *Debt-Modifications and Extinguishments*, evaluates and concludes whether the terms of the agreements were or were not substantially different as of a particular reporting date and accounts the transaction as a debt modification or a troubled debt restructuring.

*Fair Value of Financial Instruments*

 

The carrying value of cash, accounts payable and accrued expense approximate their fair values based on the short-term maturity of these instruments. As defined in ASC 820, "Fair Value Measurements and Disclosures," fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. ASC 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement). This fair value measurement framework applies at both initial and subsequent measurement.

The three levels of the fair value hierarchy defined by ASC 820 are as follows:

● Level 1 – Quoted prices are available in active markets for identical
 assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in
 sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments
 such as exchange-traded derivatives, marketable securities and listed equities.

● Level 2 – Pricing inputs are other than quoted prices in active
 markets included in Level 1, which are either directly or indirectly observable as of the reported date. Level 2 includes those financial
 instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that
 consider various assumptions, including quoted forward prices for commodities, time value, volatility factors and current market
 and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions
 are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported
 by observable levels at which transactions are executed in the marketplace. Instruments in this category generally include non- exchange-traded
 derivatives such as commodity swaps, interest rate swaps, options and collars.

● Level 3 – Pricing inputs include significant inputs that are
 generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in
 management's best estimate of fair value.

The Company did not have any Level 1 or Level 2 assets and liabilities at December 31, 2024 and 2023.

*Investment in equity securities*

 

The following table summarizes the cumulative gross unrealized gains and losses and fair values for long- term investments accounted for at fair value under the fair value option, with the unrealized gains and losses reported within earnings on the Condensed Consolidated Statements of Operation as of December 31, 2024 and 2023:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Initial <br> Book Value** | **Cumulative <br> Gross<br> Unrealized <br> Gains** | **Cumulative <br> Gross<br> Unrealized <br> Losses** | **Fair Value** |
| **December 31, 2024** |  |  |  |  |
| Investment in GMP Bio (equity securities) | $22653225 | $- | $- | $22653225 |
| Total | $22653225 | $- | $- | $22653225 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Initial<br> Book Value** | **Cumulative Gross<br> Unrealized Gains** | **Cumulative <br> Gross<br> Unrealized <br> Losses** | **Fair Value** |
| **December 31, 2023** |  |  |  |  |
| Investment in GMP Bio (equity securities) | $22640519 | $12706 | $- | $22653225 |
| Total | $22640519 | $12706 | $- | $22653225 |

---

The table above sets forth a summary of the recording of the initial value of the long-term value of investment in equity securities of GMP Bio, based on a third-party valuation report, and changes in the fair value of such equity securities, if such change occurs, as a Level 3 fair value as of December 31, 2024 and 2023. During the year ended December 31, 2024, there have been no changes in the long-term value of the investment in equity securities of GMP Bio.

 

*Derivative Liability*

 

The Company has certain derivative liabilities associated with its 2019 bridge financing Convertible Notes (see Note 5), consisted of conversion feature derivatives at December 31, 2024 and 2023, are Level 3 fair value measurements.

The table below sets forth a summary of the changes in the fair value of the Company's derivative liabilities classified as Level 3 as of December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
|  | December 31, 2024<br> Conversion Feature | December 31, 2023<br> Conversion Feature |
| Balance at January 1, 2024 and 2023 | $423214 | $198140 |
| Change in fair value | 280402 | 225074 |
| Balance at December 31, 2024 and 2023 | $703616 | $423214 |

---

At December 31, 2024 and 2023, respectively, the Company estimated the fair value of the conversion feature derivatives embedded in the convertible debentures based on assumptions used in the Black-Scholes valuation model. The key valuation assumptions used consists, in part, of the price of the Company's Common Stock, a risk-free interest rate based on the yield of a Treasury note and expected volatility of the Company's Common Stock all as of the measurement dates. The Company used the following assumptions to estimate fair value of the derivatives as of December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
|  | December 31, <br> 2024 | December 31, <br> 2023 |
| Risk free interest | 3.98% - 5.09% | 4.64% - 5.40% |
| Market price of share | $0.02 - 0.04 | $0.03 - 0.05 |
| Life of instrument in years | 0.01 | 0.01 |
| Volatility | 138.38%-226.9 | 142.45%-236.86 |
| Dividend yield | 0% | 0% |

---

When the Company changes its valuation inputs for measuring financial liabilities at fair value, either due to changes in current market conditions or other factors, it may need to transfer those liabilities to another level in the hierarchy based on the new inputs used. The Company recognizes these transfers at the end of the reporting period that the transfers occur. For the years ended December 31, 2024 and 2023, there were no transfers of financial assets or financial liabilities between the hierarchy levels.

The $2,625,000 of contingent consideration, of shares issuable to PointR shareholders which was recorded and associated with the PointR Merger, is also classified as Level 3 fair value measurements. The Company initially recorded the contingency based on a valuation conducted by a third-party valuation expert. The valuation was based on a probability of the completion of certain milestones by PointR for the shareholders to earn additional shares. The Company evaluated the probability of the earning of the milestones and concluded that the probability of achievement of the milestones had not changed, primarily due to the shifting of focus by the Company to develop AI technologies for the COVID-19 pandemic and other technologies being developed. As such, the Company did not record any change to the valuation during the years ended December 31, 2024 or 2023, respectively; and as of December 31, 2024 and 2023, respectively.

 

*Net Income (Loss) Per Share*

 

Basic net income (loss) per common share is computed by dividing the net income (loss) by the weighted- average number of common shares outstanding during the period. Diluted net income (loss) per share includes the effect of Common Stock equivalents (notes convertible into Common Stock, stock options and warrants) when, under either the treasury or if-converted method, such inclusion in the computation would be dilutive. During the years ended December 31, 2024 and 2023, no equivalent shares of the Common Stock were included as the Company had incurred losses during this period and addition of such stock equivalents in the computation would have been anti-dilutive.

*Stock-Based Compensation*

 

The Company applies the provisions of ASC 718, Compensation—Stock Compensation ("*ASC 718*"), which requires the measurement and recognition of compensation expense for all stock-based awards made to employees and non-employees, including employee stock options, in the statements of operations.

For stock options issued, the Company estimates the grant date fair value of each option using the Black- Scholes option pricing model. The use of the Black-Scholes option pricing model requires management to make assumptions with respect to the expected term of the option, the expected volatility of the Common Stock consistent with the expected life of the option, risk-free interest rates and expected dividend yields of the Common Stock. For awards subject to service-based vesting conditions, including those with a graded vesting schedule, the Company recognizes stock-based compensation expense equal to the grant date fair value of stock options on a straight-line basis over the requisite service period, which is generally the vesting term. Forfeitures are recorded as they are incurred as opposed to being estimated at the time of grant and revised.

For warrants issued in connection with fund raising activities, the Company estimates the grant date fair value of each warrant using the Black-Scholes pricing model. The use of the Black-Scholes option pricing model requires management to make assumptions with respect to the expected term of the warrant, the expected volatility of the Common Stock consistent with the expected life of the warrant, risk-free interest rates and expected dividend yields of the Common Stock. If the warrants are issued upon termination or cancellation of prior issued warrants, then the Company estimates the grant date fair value of the new warrants using the Black-Scholes pricing model and evaluates whether the new warrants are deemed as equity instruments or liability instruments. If the warrants are deemed to be equity instruments, the Company records stock compensation expense and an addition to additional paid in capital. If however, the warrants are deemed to be liability instruments, then the fair value is treated as a deemed dividend and credited to additional paid in capital.

*Impairment of Long-Lived Assets*

The Company reviews long-lived assets, including definite-lived intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of these assets is determined by comparing the forecasted undiscounted net cash flows of the operation to which the assets relate to the carrying amount. If the operation is determined to be unable to recover the carrying amount of its assets, then these assets are written down first, followed by other long-lived assets of the operation to fair value. Fair value is determined based on discounted cash flows or appraised values, depending on the nature of the assets. For the years ended December 31, 2024 and 2023, there were no impairment losses recognized for long- lived assets.

*Intangible Assets*

 

The Company records its intangible assets at cost in accordance with ASC 350, Intangibles – Goodwill and Other. The Company reviews the intangible assets for impairment on an annual basis or if events or changes in circumstances indicate it is more likely than not that they are impaired. These events could include a significant change in the business climate, legal factors, a decline in operating performance, competition, sale or disposition of a significant portion of the business, or other factors. If the review indicates the impairment, an impairment loss would be recorded for the difference of the value recorded and the new value. For the years ended December 31, 2024 and 2023, there were no impairment losses recognized for intangible assets. When we sell or contribute properties to unconsolidated arrangements and retain a non-controlling ownership interest in such assets, we recognize the difference between the consideration received and the carrying amount of the asset sold or contributed.

*Goodwill*

 

Goodwill represents the excess of the purchase price of acquired business over the estimated fair value of the identifiable net assets acquired. Goodwill is not amortized but is tested for impairment at least once annually, at the reporting unit level or more frequently if events or changes in circumstances indicate that the asset might be impaired. The goodwill impairment test is applied by performing a qualitative assessment before calculating the fair value of the reporting unit. If, on the basis of qualitative factors, it is considered not more likely than not that the fair value of the reporting unit is less than the carrying amount, further testing of goodwill for impairment would not be required. Otherwise, goodwill impairment is tested using a two-step approach.

The first step involves comparing the fair value of the reporting unit to its carrying amount. The Company has always operated as a single unit. If the fair value of the reporting unit is determined to be greater than its carrying amount, there is no impairment. If the reporting unit's carrying amount is determined to be greater than the fair value, the second step must be completed to measure the amount of impairment, if any. The second step involves calculating the implied fair value of goodwill by deducting the fair value of all tangible and intangible assets, excluding goodwill, of the reporting unit from the fair value of the reporting unit as determined in step one. The implied fair value of the goodwill in this step is compared to the carrying value of goodwill. If the implied fair value of the goodwill is less than the carrying value of the goodwill, an impairment loss equivalent to the difference is recorded. When we sell or contribute properties to unconsolidated arrangements and retain a non-controlling ownership interest in such assets, we recognize the difference between the consideration received and the carrying amount of the asset sold or contributed. For the years ended December 31, 2024 and 2023, we recorded an impairment loss of approximately $3.2 million and $6.1 million and, respectively, on our goodwill, based on the difference between the carrying value of our goodwill as against the market capitalization of the Company. For more information on goodwill and impairment, refer to Note 3 to these Notes to the Consolidated Financial Statements.

*Derivative Financial Instruments Indexed to the Company's Common Stock*

 

We have generally issued derivative financial instruments, such as warrants, in connection with our equity offerings. We evaluate the terms of these derivative financial instruments in order to determine their accounting treatment in our financial statements. Key considerations include whether the financial instruments are freestanding and whether they contain conditional obligations. If the warrants are freestanding, do not contain conditional obligations and meet other classification criteria, we account for the warrants as an equity instrument. However, if the warrants contain conditional obligations, then we account for the warrants as a liability until the conditional obligations are met or are no longer relevant. Because no established market prices exist for the warrants that we issue in connection with our equity offerings, we must estimate the fair value of the warrants based on the price of our Common Stock as of December 31 each year, which is as inherently subjective as it is for stock options, and for similar reasons as noted in the stock-based compensation section above. For financial instruments which are accounted for as a liability, we report any changes in their estimated fair values as gains or losses in our Consolidated Statement of Income.

*Convertible Instruments*

 

The Company evaluates and accounts for conversion options embedded in its convertible instruments in accordance with ASC 815 "Derivatives and Hedging".

ASC 815 generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur, and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. Professional standards also provide an exception to this rule when the host instrument is deemed to be conventional as defined under professional standards as "The Meaning of Conventional Convertible Debt Instrument."

The Company accounts for convertible instruments (when it has determined that the embedded conversion options should not be bifurcated from their host instruments) in accordance with ASC 470-20 "Debt – Debt with Conversion and Other Options." Accordingly, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying Common Stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Original issue discounts ("*OID*") under these arrangements are amortized over the term of the related debt to their earliest date of redemption. The Company also records when necessary deemed dividends for the intrinsic value of conversion options embedded in preferred shares based upon the differences between the fair value of the underlying Common Stock at the commitment date of the note transaction and the effective conversion price embedded in the note.

ASC 815-40 "Derivatives and Hedging – Contracts in Entity's Own Equity" provides that, among other things, generally, if an event occurs that is not within the entity's control could or would require net cash settlement, then the contract shall be classified as an asset or a liability.

*Variable Interest Entity (VIE) Accounting*

 

The Company evaluates its ownership, contractual relationships and other interests in entities to determine the nature and extent of the interests, whether such interests are variable interests and whether the entities are VIEs in accordance with ASC 810, Consolidations. These evaluations can be complex and involve Management judgment as well as the use of estimates and assumptions based on available historical information, among other factors. Based on these evaluations, if the Company determines that it is the primary beneficiary of a VIE, the entity is consolidated into the financial statements. At December 31, 2024 and 2023, the Company identified EdgePoint to be the Company's sole VIE. At December 31, 2024, and 2023, the Company's ownership percentage of EdgePoint was 29% each, respectively. The VIE's net assets were less than approximately $0.1 million at December 31, 2024 and 2023, respectively.

*Investments - Equity Method*

 

The Company accounts for equity method investments at cost, adjusted for the Company's share of the investee's earnings or losses, which are reflected in the consolidated statements of operations. The Company periodically reviews the investments for other than temporary declines in fair value below cost and more frequently when events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The Investment in GMP Bio represents the investment into equity securities for which the Company elected the fair value option pursuant to ASC 825-10-15 and subsequent fair value changes in the GMP Bio shares shall be included in the result from other income. Refer to Note 6 to these Notes to the Consolidated Financial Statements.

*Joint Venture agreement*

 

We have equity interest in unconsolidated arrangement that is primarily engaged in the business of drug discovery, development, and commercialization, including but not limited to development and commercialization of TGF-beta therapeutics as well as establishing and operating contract development and manufacturing organization ("*CDMO*") facilities and capabilities. The Company first reviews the arrangement to determine if it meets the definition of an accounting joint venture pursuant to ASC 323-10-20. In order to meet the definition of a joint venture, the arrangement must have all of the following characteristics, (i) the arrangement is organized within a separate legal entity, (ii) the entity is under the joint control of the venturers, (iii) the venturers must be able to exercise joint control through their equity investments, (iv) the qualitative characteristics of the entity, including its purpose and design must be consistent with the definition of a joint venture.

We consolidate arrangements that are considered to be VIEs where we are the primary beneficiary. We analyze our investments in joint ventures to determine if the joint venture is considered a VIE and would require consolidation. We (i) evaluate the sufficiency of the total equity investment at risk, (ii) review the voting rights and decision-making authority of the equity investment holders as a group and whether there are limited partners (or similar owning entities) that lack substantive participating or kick out rights, guaranteed returns, protection against losses, or capping of residual returns within the group and (iii) establish whether activities within the venture are on behalf of an investor with disproportionately few voting rights in making this VIE determination.

To the extent that we own interests in a VIE and we (i) have the power to direct the activities that most significantly impact the economic performance of the VIE and (ii) have the obligation or rights to absorb losses or receive benefits that could potentially be significant to the VIE, then we would be determined to be the primary beneficiary and would consolidate the VIE. To the extent that we own interests in a VIE, then at each reporting period, we re-assess our conclusions as to which, if any, party within the VIE is considered the primary beneficiary.

To the extent that our arrangements do not qualify as VIEs, they are consolidated if we control them through majority ownership interests or if we are the managing entity (general partner or managing member) and our partner does not have substantive participating rights. Control is further demonstrated by our ability to unilaterally make significant operating decisions, refinance debt, and sell the assets of the joint venture without the consent of the non- managing entity and the inability of the non-managing entity to remove us from our role as the managing entity.

We use the equity method of accounting for those arrangements where we exercise significant influence but do not have control. Under the equity method of accounting, our investment in each arrangement is included on our consolidated balance sheet; however, the assets and liabilities of the joint ventures for which we use the equity method are not included on our consolidated balance sheet. When we sell or contribute properties to unconsolidated arrangements and retain a non-controlling ownership interest in such assets, we recognize the difference between the consideration received and the carrying amount of the asset sold or contributed when its derecognition criteria are met. The equity method investment we retain in such partial sale transactions is noncash consideration and is measured at fair value. As a result, the accounting for a partial sale will result in the recognition of a full gain or loss.

When circumstances indicate there may have been a reduction in the value of an equity investment, we evaluate whether the loss in value is other than temporary. If we conclude it is other than temporary, we recognize an impairment charge to reflect the equity investment at fair value.

The Company elected the fair value option under the fair value option Subsection of Section 825-10-15 to account for its equity-method investment as the Company believes that the fair value option is most appropriate for a company in the biotechnology industry, The fair value option is more appropriate for companies that are involved in extensive and usually very expensive research and development efforts, which are not appropriately reflected in the market value or reflective of the true value of the development activities of the Company.

*Embedded debt costs in convertible debt instruments*

 

In August 2020, the FASB issued "ASU 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40)" ("*ASU 2020-06*") which simplifies the accounting for convertible instruments. The guidance removes certain accounting models which separate the embedded conversion features from the host contract for convertible instruments. Either a modified retrospective method of transition or a fully retrospective method of transition was permissible for the adoption of this standard. Update No. 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption was permitted no earlier than the fiscal year beginning after December 15, 2020. The Company adopted ASU 2020-06 effective January 1, 2023 and has removed the effects of any embedded conversion features from certain of our convertible instruments as of that date.

*Revenue Recognition*

 

The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers.

Under ASC 606, the Company recognizes revenue when its customers obtain control of the promised good or services, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. The Company applies the following five-step process: (i) identify the contract(s) with a customer; (ii) identify the performance obligation(s) in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation(s) in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation.

At contract inception, once the contract is determined to be within the scope of ASC 606, the Company identifies the performance obligation(s) in the contract by assessing whether the goods or services promised within each contract are distinct. The Company then recognizes revenue for the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.

The Company anticipates generating revenues from rendering services to other third party customers for the development of certain drug products and/or in connection with certain out-licensing agreements. In the case of services rendered for development of the drugs, revenue is recognized upon the achievement of the performance obligations or over time on a straight-line basis over the extended service period. In the case of out-licensing contracts, the Company records revenues either (i) upon achievement of certain pre-defined milestones when there is no obligation of the Company achieve any performance obligations in connection with the said pre-defined milestones, or (ii) upon achievement of the performance obligations if the milestones require the Company to provide the performance obligations.

The Company occasionally collects advance payments from customers toward commitments to provide services or performance obligations, in which case the advance payment is recorded as a liability until the obligations are fulfilled and revenue is recognized.

*Research & Development Costs*

 

In accordance with ASC 730-10-25 "Research and Development", research and development costs are charged to expense as and when incurred.

*Recent Accounting Pronouncements*

 

In August 2020, the FASB issued "ASU 2020-06, Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40)" ("*ASU 2020-06*") which simplifies the accounting for convertible instruments. The guidance removes certain accounting models which separate the embedded conversion features from the host contract for convertible instruments. Either a modified retrospective method of transition or a fully retrospective method of transition was permissible for the adoption of this standard. Update No. 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption was permitted no earlier than the fiscal year beginning after December 15, 2020.The Company adopted ASU 2020-06 effective January 1, 2023 and recorded approximately $0.5 million as a reduction to the additional paid in capital and added approximately $0.3 million to the opening retained earnings in accordance with the authoritative guidance under ASU 2020-06.

All other newly issued but not yet effective accounting pronouncements have been deemed to be not applicable or immaterial to the Company.

**NOTE 3 – ACQUISITIONS, GOODWILL AND INTANGIBLE ASSETS**

*Goodwill from 2019 Reverse Merger with Oncotelic and Merger with PointR*

 

The Company completed the reverse merger with Oncotelic Inc. ("Merger") in April 2019. The Company completed the merger with PointR Data Inc ("PointR Merger") in November 2019. For more details on the two mergers, refer to our 2020 Annual Report on Form 10-K for the year ended December 31, 2020 filed by the Company on April 15, 2021.

The Oncotelic merger gave rise to Goodwill of approximately $4.9 million. Upon the non-financial sale of our asset as contribution to our equity method investment, we derecognized the balance of the carrying value of our goodwill of approximately $4.9 million from the Oncotelic Merger in accordance with our policy and authoritative accounting guidance.

Further, we added goodwill of $16,182,456 upon the completion of the Merger with PointR.

We have one operating segment and reporting unit. Accordingly, our review of goodwill impairment indicators was performed at the entity-wide level. In performing our annual impairment assessment, we determined if we should qualitatively assess whether it was more likely than not the fair value of goodwill was less than its carrying amount (the qualitative impairment test). The factors we considered in the assessment included our market capitalization, general macroeconomic conditions, conditions specific to the industry and market and whether there had been sustained declines in our share price. If we concluded, it was more likely than not, the fair value of the reporting unit was less than its carrying amount, or elected not to use the qualitative impairment test, a quantitative impairment test would be performed.

We used our market capitalization as an indicator of fair value. While we believe the fair value measurement need not be based solely on the quoted market price of an individual share of our Common Stock, and that we also could consider the impact of a control premium in measuring the fair value of its reporting unit. In the absence of any other valuation metrics, the Company believed using a control premium utilized would not be appropriate under the current circumstances. We also considered some other market comparables, trends in our stock price as well as the industry over a period of two successive quarters and prospective quarter to evaluate whether the fair value of our reporting unit was greater than our carrying amount. As such, we performed a quantitative impairment assessment of goodwill for our single reporting unit at the end of 2024 and 2023, due to a sustained change in our market capitalization and an increase in negative economic outlook for biotech markets. We estimated and reconciled the fair value of our reporting unit utilizing our market capitalization based on the stock price of our Common Stock as of December 31, 2024 and 2023. Before completing our goodwill impairment test, we first tested our indefinite-lived intangible asset then our remaining long-lived assets for impairment. We concluded our indefinite-lived intangible assets were not impaired. Based on the market capitalization, we further concluded the fair value of our single reporting unit was less than its carrying value and therefore recognized an impairment charge of approximately $3.2 million and approximately $6.1 million during the year ended December 31, 2024 and 2023. The calculation of the impairment charge included substantial fact-based determinations and estimates. The goodwill impairment charge is reflected as goodwill impairment in the consolidated statements of operations for the year ended December 31, 2024.

A summary of our goodwill as of December 31, 2024 and 2023 is shown below:

---

| | | |
|:---|:---|:---|
|  | December 31, <br> 2024 | December 31, <br> 2023 |
| Balance at January 1, 2024 and 2023 | $5988230 | $12071376 |
| Less: Goodwill impairment due to market capitalization | (3200000) | (6083146) |
| Balance at December 31, 2024 and 2023 | $2788230 | $5988230 |

---

In general, the goodwill is tested on an annual impairment date of December 31, unless we observe any further deterioration in our market capitalization, in which case we may, depending on the materiality of the impairment, record an impairment at the end of other reporting periods, as we have done during the course of the year ended December 31, 2024.

*In-Process Research & Development ("IPR&D") Summary*

 

The IPR&D assets were acquired in the PointR Merger during the year ended December 31, 2019. Since January 2021, the Company has determined that the IPR&D should be reported as an indefinitely lived asset and therefore will evaluate, on an annual basis, for any impairment on the IPR&D and will record an impairment if identified. The balance of IPR&D as of December 31, 2024 and December 31, 2023 was $1,101,760. For more information on the IPR&D, please refer to our 2023 Annual Report on Form 10-K filed with the SEC on April 12, 2024.

**NOTE 4 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES**

Accounts payable and accrued expense consists of the following amounts:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br> 2024** | **December 31, <br> 2023** |
| Accounts payable | $1691725 | $1656613 |
| Accrued expenses | 745442 | 780708 |
|  | $2437167 | $2437321 |

---

---

| | | |
|:---|:---|:---|
|  | **December 31, <br> 2024** | **December 31, <br> 2023** |
| Accounts payable – related party | $346057 | $344099 |

---

**NOTE 5 – CONVERTIBLE DEBENTURES, NOTES AND OTHER DEBT**

As of December 31, 2024, special purchase agreements (SPAs) with convertible debentures and notes, net of debt discount and including accrued interest, if any, consist of the following amounts:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br> 2024** | **December 31, <br> 2023** |
| **<u>Current Debt</u>** |  |  |
| **<u>Convertible debentures</u>** |  |  |
| 10% Convertible note payable, due April 23, 2022 – Bridge Investor | $35556 | $35556 |
| 10% Convertible note payable, due April 23, 2022 – Related Party | 164444 | 164444 |
| 10% Convertible note payable, due August 6, 2022 – Bridge Investor | 200000 | 200000 |
|  | 400000 | 400000 |
| **<u>Fall 2019 Notes</u>** |  |  |
| 5% Convertible note payable – Stephen Boesch | 133958 | 128958 |
| 5% Convertible note payable – Related Party | 313733 | 301233 |
| 5% Convertible note payable – Dr. Sanjay Jha (Through his family trust) | 313253 | 300753 |
| 5% Convertible note payable – CEO & CFO – Related Parties | 102659 | 98559 |
| 5% Convertible note payable – Bridge Investors | 210322 | 201922 |
|  | 1073925 | 1031425 |
| **<u>August 2021 Convertible Notes</u>** |  |  |
| 5% Convertible note – Autotelic Inc– Related Party | 292552 | 280052 |
| 5% Convertible note – Bridge investors | 437075 | 418399 |
| 5% Convertible note – CFO – Related Party | 87770 | 84018 |
|  | 817397 | 782469 |
| **<u>JH Darbie PPM Debt</u>** |  |  |
| 16% Convertible Notes – Non-related parties | - | 311693 |
| **<u>November/December 2021 & March 2022 Notes</u>** |  |  |
| 16% Convertible Notes – Accredited Investors | 233687 | 233392 |
| **<u>Debt for Clinical Trials – Forever Prosperity (Formerly GMP)</u>** |  |  |
| 2% Convertible Notes – Forever Prosperity | 4840247 | 4750000 |
| **<u>May and June 2022 Note</u>** |  |  |
| 16% Convertible Notes – Accredited Investors | 993130 | 1401284 |
| **<u>JH Darbie PPM 2 Debt</u>** |  |  |
| 16% Convertible Notes - Non-related parties | 2183638 |  |
| 16% Convertible Notes – CEO – Related Party | 125000 | - |
|  | 2308638 | - |
| **<u>Other Debt</u>** |  |  |
| Short term debt – Bridge investors | 210000 | 210000 |
| Short term debt from CFO – Related Party | 76050 | 35050 |
| Short term debt – Autotelic Inc. – Related Party | 2085000 | 1470000 |
| Short Term Debt from CEO – Related Party | 50000 | 50000 |
|  | 2421050 | 1765050 |
| Total of short term convertible debentures & notes and other debt | $13088074 | 10675313 |

---

---

| | | |
|:---|:---|:---|
|  | **December 31, <br> 2024** | **December 31, <br> 2023** |
| **<u>Long Term Debt</u>** |  |  |
| **<u>JH Darbie PPM 2 Debt</u>** |  |  |
| 16% Convertible Notes - Non-related parties |  | 1773468 |
| 16% Convertible Notes – CEO – Related Party |  | 125000 |
|  |  | 1898468 |

---

*Convertible Debentures*

 

As of December 31, 2024, the Company had a derivative liability of approximately $704,000 and recorded a change in fair value of approximately $280,000 during the year ended December 31, 2024, on the Convertible Debentures issued in 2019 to our CEO and a bridge investor.

*Bridge Financing*

 

**Notes with Officer and Bridge Investor**

In April 2019, the Company entered into a Securities Purchase Agreement (the "*Bridge SPA*") with our CEO (the "*Trieu Note*") and a Bridge Investor with a commitment to purchase convertible notes in the aggregate of $400,000. For more information on the Bridge SPA, refer to our 2023 Annual Report on Form 10-K filed with the SEC on April 12, 2024.

The issuance of the Trieu Note resulted in a discount from the beneficial conversion feature totaling $131,555 related to the conversion feature. Total amortization of the OID and the discount totaled $0 and approximately for the years ended December 31, 2024, and 2023, respectively. Total unamortized discount on this note was approximately $0 as of December 31, 2024, and 2023, respectively.

In April 2019, pursuant to the Bridge SPA the Company entered into Convertible Note Tranche #1 ("*Tranche #1*") with the Bridge Investor. For more information on Tranche #1, refer to our 2023 Annual Report on Form 10-K filed with the SEC on April 12, 2024.

The issuance of the note resulted in a discount from the beneficial conversion feature totaling $28,445. Total amortization of the OID and discount totaled approximately $0 for the year ended December 31, 2024, and 2023, respectively. Total unamortized discount on this note was approximately $0 as of December 31, 2024, and December 31, 2023.

In August 2019, pursuant to the Bridge SPA the Company entered into Convertible Note Tranche #2 ("*Tranche #2*") with the Bridge Investor. For more information on Tranche #2, refer to our 2023 Annual Report on Form 10-K filed with the SEC on April 12, 2024.

The issuance of the note resulted in a discount from the beneficial conversion feature totaling $175,000. Total amortization of the OID and discount totaled approximately $0 for the years ended December 31, 2024, and 2023, respectively. Total unamortized discount on this note was $0 as of December 31, 2024, and 2023.

*Fall 2019 Debt Financing*

 

In December 2019, the Company closed its Fall 2019 Debt Financing, raising an additional $500,000 bringing the gross proceeds of all debt financings under the Fall 2019 Debt Financing to $1,000,000. The Company entered into those certain Note Purchase Agreements (the "*Fall 2019 Note Purchase Agreements*") with certain accredited investors and the officers of the Company for the sale of convertible promissory notes (the "*Fall 2019 Notes*"). The Company completed the initial closing under the Fall 2019 Note Purchase Agreements in November 2019. The Company issued Fall 2019 Notes in the principal amount of $250,000 to each of Dr. Vuong Trieu, the Company's Chief Executive Officer, and Stephen Boesch, in exchange for gross proceeds of $500,000. In connection with the second and final closing of the Fall 2019 Debt Financing, the Company issued Fall 2019 Notes to additional investors including $250,000 to Dr. Sanjay Jha, through his family trust, the former CEO of Motorola and COO/President of Qualcomm. The Company also offset certain amounts due to Dr. Vuong Trieu, the Company's Chief Executive Officer, Chulho Park, the Company's then Chief Technology Officer, and Amit Shah, the Company's Chief Financial Officer, all related parties as Officers of the Company, and converted such amounts due into the Fall 2019 Notes. $35,000 due to Dr. Vuong Trieu, $27,000 due to Chulho Park and $20,000 due to Amit Shah were converted into convertible debt under the Fall 2019 Notes. The Company also issued the Fall 2019 Notes of $168,000 to two accredited investors.

All the Fall 2019 Notes provided for interest at the rate of 5% per annum and are unsecured. For more information on the Fall 2019 Debt Financing, refer to our 2023 Annual Report on Form 10-K filed with the SEC on April 12, 2024.

There was no activity during the year ended December 31, 2024 and 2023.The total unamortized principal amount of the Fall 2019 Notes was $850,000 as of December 31, 2024, and 2023.

Further, the Company recorded interest expense of approximately $42,500 on these Fall 2019 Notes for the years ended December 31, 2024, and 2023. The total amount outstanding under the Fall 2019 Notes, net of discounts and including accrued interest thereon, as of December 31, 2024, and 2023 was approximately $1,073,900 and $1,031,400 respectively.

*Forever Prosperity (Formerly GMP) Notes*

 

In June 2020, the Company secured $2 million in debt financing, evidenced by a one-year convertible note (the "*GMP Note*") from GMP, to conduct a clinical trial evaluating OT-101 against COVID-19 bearing 2% annual interest, and is personally guaranteed by Dr. Vuong Trieu, the Chief Executive Officer of the Company. The GMP Note is convertible into the Company's Common Stock upon the GMP Note's maturity of the GMP Note, at the Company's Common Stock price on the date of conversion with no discount. GMP has waived the default in the maturity of the GMP Note and as such there is no event of default and also agreed to extend the date of maturity of the GMP Note to December 31, 2024. GMP does not have the option to convert prior to the GMP Note's maturity. Such financing will be utilized solely to fund the clinical trial. The Company's liability under GMP Note commenced to accrue when GMP first began to pay for services related to the clinical trial to our third-party clinical research organization, up to a maximum of $2 million. GMP has been invoiced by the clinical research organization for the full $2 million as of December 31, 2024, and as such the Company has recognized the liability as a convertible debt.

In September 2021, the Company secured a further $1.5 million in debt financing, evidenced by a one-year convertible note (the "*GMP Note 2*") from GMP, to fund the same clinical trial evaluating OT-101 against COVID- 19 bearing 2% annual interest. The GMP Note is convertible into the Company's Common Stock upon the GMP Note 2's maturity one year from the date of the GMP Note 2, at the Company's Common Stock price on the date of conversion with no discount. GMP has waived the default in the maturity of the GMP Note and as such there is no event of default and also agreed to extend the date of maturity of the GMP Note to December 31, 2024. GMP does not have the option to convert prior to the GMP Note 2's maturity at the end of one year. Such financing was to be utilized solely to fund the clinical trial. GMP was invoiced by the clinical research organization for $1.5 million.

In October 2021, the Company entered into an Unsecured Convertible Note Purchase Agreement (the "*October Purchase Agreement*") with GMP, pursuant to which the Company issued a convertible promissory note in the aggregate principal amount of $0.5 million (the "*October 2021 Note*"), which October 2021 Note is convertible into shares of the Company's Common Stock. GMP has waived the default in the maturity of the GMP Note and as such there is no event of default and also agreed to extend the date of maturity of the GMP Note to December 31, 2024.

In January 2022, the Company entered into an Unsecured Convertible Note Purchase Agreement (the "*January Purchase Agreement*") with GMP, pursuant to which the Company issued a convertible promissory note in the aggregate principal amount of $0.5 million (the "*January 2022 Note*"), which January 2022 Note is convertible into shares of the Company's Common Stock. GMP agreed to extend the date of maturity of the January 2022 Note to December 31, 2024.

Cumulatively, the GMP Note, GMP Note 2, October 2021 Note and the January 2022 Notes are referred to as the "*GMP Notes"*. The GMP Notes carry an interest rate of 2% per annum and mature on the earlier of (a) the one- year anniversary of the date of the Purchase Agreement, or (b) the acceleration of the maturity by GMP upon occurrence of an Event of Default (as defined below). All Notes contain a voluntary conversion mechanism whereby GMP may convert the outstanding principal and accrued interest under the terms of all the GMP Notes into shares of Common Stock (the "*Conversion Shares*"), at the consolidated closing bid price of the Company's Common Stock on the applicable OTC Market as of the date the Company receives a Notice of Conversion from GMP. Prepayment of the GMP Notes may be made at any time by payment of the outstanding principal amount plus accrued and unpaid interest. The October Note contained customary events of default (each an "*Event of Default*"). If an Event of Default occurred, at GMP's election, the outstanding principal amount of the GMP Notes, plus accrued but unpaid interest, would become immediately due and payable in cash. The October Purchase Agreement required the Company to use of the proceeds received under the October 2021 Note to support the clinical development of OT-101, including payroll and had been made in continuation of the relationship between the Company and GMP. All the GMP notes were assigned to Forever Prosperity, LLC, an affiliated entity of GMP. As of January 1, 2025, the GMP Notes are in default. The total principal outstanding on all the GMP notes, inclusive of accrued interest, was approximately $4.8 million as of December 31, 2024 and 2023, respectively.

During the years ended December 31, 2024 and 2023, the Company incurred approximately $90,000 of interest expense.

*August 2021 Convertible Notes*

 

In August 2021, the Company entered into Note Purchase Agreements with Autotelic - a related party, our CFO – a related party, and certain accredited investors (the "August 2021 investors"), whereby the Company issued four convertible notes in the aggregate principal amount of $698,500 convertible into shares of common stock of the Company for net proceeds of approximately $691,000. The convertible notes carry a five (5%) percent coupon and mature one year from issuance. The majority of the August 2021 investors have the right, but not the obligation, not more than five days following the maturity date, to convert all, but not less than all, the outstanding and unpaid principal plus accrued interest into the Company's common stock, at a conversion price of $0.18. The August 2021 Note Holders has waived the default in the maturity of the August 2021 Notes and as such there is no event of default and also agreed to extend the date of maturity of the August 2021 Notes to December 31, 2025. The Company determined that the economic characteristics and risks of the embedded conversion option are not clearly and closely related to the economic characteristics and risks of the debt host instrument. Further, the Company determined that the embedded conversion feature meets the definition of a derivative but met the scope exception to the derivative accounting required under ASC 815 for certain contracts involving a reporting entity's own equity.

As of December 31, 2024 and 2023, the August 2021 convertible notes, net of debt discount, consist of the following amounts:

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| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2024** | **December 31,**<br>**2023** |
| Autotelic Related party convertible note, 5% coupon December 2024 | $292552 | $280052 |
| CFO Related party convertible note, 5% coupon December 2024 | 87770 | 84018 |
| Accredited investors convertible note, 5% coupon December 2024 | 437075 | 418399 |
|  | $817397 | $782469 |

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During the years ended December 31, 2024 and 2023 the Company recognized approximately $35,000 of interest expense on the August 2021 Investors notes of which approximately $16,000 are attributable to related parties.

At December 31, 2024, and 2023, accrued interests on these convertible notes totaled approximately $119,000 and $84,000, respectively.

The outstanding balance on the note for the year ended December 31, 2024 was approximately $817,000 including related party balance of approximately $380,000. The outstanding balance on the note for the year ended December 31, 2023 was approximately $782,000 including related party balance of $364,000.

*November – December 2021 Financing*

 

In November / December 2021, the Company entered into securities purchase agreement with five institutional investors, whereby the Company issued five convertible notes in the aggregate principal amount of $1,250,000 convertible into shares of common stock of the Company. The convertible notes carry a twelve (12%) percent coupon and a default coupon of 16% and mature at the earliest of one year from issuance or upon event of default. Investors has the right at any time following issuance date to convert all or any part of the outstanding and unpaid amount of the note into the Company's common stock at a conversion price established at a fixed rate of $0.07. The Company granted a total number of 9,615,385 warrants convertible into an equivalent number of the Company Common Stock at a strike price of $0.13 up to five years after issuance. The Placement agent was also granted a total of 961,540 warrants convertible into an equivalent number of the Company Common Stock at a strike price of $0.13 up to five years after issuance, as part of a finder's fee agreement.

Further, in March 2022, the Company entered into a Securities Purchase Agreement with Fourth Man, pursuant to which the Company issued convertible promissory note in the aggregate principal amount of $0.25 million, convertible into shares of common stock of the Company. The convertible notes carry a twelve (12%) percent coupon and a default coupon of 16% and mature at the earliest of one year from issuance or upon event of default. As of December 31, 2022, this note is in Investors have the right at any time following issuance date to convert all or any part of the outstanding and unpaid amount of the note into the Company's Common Stock at a conversion price established at a fixed rate of $0.10. The Company granted a total number of 1,250,000 warrants convertible into an equivalent number of the Company common shares at a strike price of $0.20 up to five years after issuance. The Placement agent was also granted a total of 125,000 warrants convertible into an equivalent number of the Company Common Stock at a strike price of $0.20 up to five years after issuance, as part of a finder's fee agreement.

During the year ended December 31, 2023, the Company converted the balance of approximately $243,000 of Blue Lake convertible note, inclusive of accrued interest, into 3,466,583 shares of the Company's Common Stock, which fully retired the convertible note as of December 31, 2023. Further, during the year ended December 31, 2023, the Company fully converted the balance of Fourth Man convertible note of approximately $127,000 into 1,820,395 shares of the Company's common stock, which fully retired the convertible note as of December 31, 2023.

As of December 31, 2024, all of the November- December 2021 notes and any accrued interest, are fully converted.

As of December 31, 2024, and December 31, 2023, the Fourth Man convertible note, net of debt discount, consist of the following amounts:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2024** | **December 31,<br> 2023** |
| Fourth Man Convertible note, 16% coupon March 2023 inclusive of accrued interest and default provision | $233687 | $233392 |
| Unamortized debt discount | - | - |
| Convertible notes, net | $233687 | 233392 |

---

The March 2022 Fourth Man Financing principal balance was approximately $142,000 and $162,000 as of December 31, 2024, and December 31, 2023, respectively.

During the year ended December 31, 2024, the Company converted approximately $35,000 in principal, accrued interest and legal fees into 500,000 shares of common stock. The note includes a default amount calculated at 125% of the unpaid principal and accrued interest. As the Company failed to repay the note at the original maturity date, The Company has recorded an estimated default penalty of approximately $70,000.

As of December 31, 2024, the balance includes the remaining principal of $142,000 and $70,000 of accrued default penalty pursuant to the terms of the underlying agreement.

The Company recognized approximately $34,000 and $25,000 of interest during the years ended December 31, 2024 and 2023.

As of December 31, 2024 and 2023, the balance of the unamortized debt discount was $0. The Company adopted ASU 2020-06 on January 1, 2023, which resulted in the reversal of the original BCF amount to additional paid in capital for $109,349, reversal of the unamortized debt discount related to the BCF for $25,489 with the balance being recorded through retained earnings for $78,460.

*May 2022 Mast Financing*

 

In May 2022, the Company entered into a securities purchase agreement with one institutional investor, whereby the Company issued one convertible note in the aggregate principal amount of $605,000 convertible into shares of common stock of the Company ("May 2022 Mast Note"). The convertible notes carry a twelve (12%) percent coupon and a default coupon of 16% and mature at the earliest of one year from issuance or upon event of default. Investor has the right at any time following issuance date to convert all or any part of the outstanding and unpaid amount of the note into the Company's common stock at a conversion price established at a fixed rate of $0.10. The Company granted a total number of 3,025,000 warrants convertible into an equivalent number of Company common shares at a strike price of $0.20 up to five years after issuance. The Placement agent was also granted a total of 302,500 warrants convertible into an equivalent number of the Company Common Stock at a strike price of $0.20 up to five years after issuance, as part of a finder's fee agreement. A portion of the proceeds were used to retire some of the November/December 2021 notes.

As of December 31, 2024, and December 31, 2023, convertible note under the May 2022 Mast Financing, net of debt discount, consist of the following amounts:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2024** | **December 31,<br> 2023** |
| Mast Hill Convertible note, 12% coupon May 2025, inclusive of accrued interest and penalty | $993130 | $905484 |
| Convertible notes, net | $993130 | $905484 |

---

The Mast Hill Note of $993,130 as of December 31, 2024 includes $605,000 of principal, $169,400 in default penalty, and approximately $219,000 in accrued interest.

Accrued interest was approximately $219,000 and $131,000 as of December 31, 2024 and 2023, respectively. The May 2022 Mast Note was extended through May 2025 at a cost of approximately $82 thousand, and which is included in the amount outstanding and payable to Mast as of December 31, 2024.

The Company recognized approximately $0 and approximately $146,000 of interest expense attributable to the amortization of the debt discount from the original debt discount, deferred financing costs, fair value allocated to the warrants during the years ended December 31, 2024 and 2023, respectively.

Effective January 1, 2023, the Company adopted ASU 2020-06, which resulted in the reversal of the original BCF amount to additional paid in capital for approximately $0.2 million, a reversal of the unamortized debt discount related to the BCF for approximately $0.1 million, with the balance of approximately $0.1 million being recorded through retained earnings.

*June 2022 Blue Lake Financing*

 

In June 2022, the Company entered into a securities purchase agreement with one institutional investor, whereby the Company issued one convertible note in the aggregate principal amount of $335,000 convertible into shares of common stock of the Company ("June 2022 Blue Lake Note"). The convertible notes carry a twelve (12%) percent coupon and a default coupon of 16% and mature at the earliest of one year from issuance or upon event of default. The investor has the right at any time following issuance date to convert all or any part of the outstanding and unpaid amount of the note into the Company's common stock at a conversion price established at a fixed rate of $0.10. The Company granted a total number of 837,500 warrants convertible into an equivalent number of the Company common shares at a strike price of $0.20 up to five years after issuance. The Placement agent was also granted a total of 83,750 warrants convertible into an equivalent number of the Company Common Stock at a strike price of $0.20 up to five years after issuance, as part of a finder's fee agreement. A portion of the proceeds were used to retire some of the November/December 2021 notes.

In May 2024, Blue Lake converted the balance of their note of approximately $531,000 including principal, accrued interest and default penalty, into 7,605,760 common shares of the Company

As of December 31, 2024 and 2023, convertible note under the June 2022 Blue Lake Financing, net of debt discount, consist of the following amounts:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br> 2024** | **December 31, 2023** |
| Blue Lake Convertible note, 16% coupon June 2023, inclusive of accrued interest | $- | $495800 |
| Convertible notes, net | $- | $495800 |

---

The Company recognized approximately $35,000 and $88,400 of interest expense attributable to interest, amortization of the debt discount from the original debt discount, deferred financing costs, fair value allocated to the warrants and the beneficial conversion feature during the years ended December 31, 2024 and 2023, respectively. The Company recognized approximately $0 and approximately $62,000 of interest expense attributable to the amortization of the debt discount from the original debt discount, deferred financing costs, fair value allocated to the warrants and BCF during the years ended December 31, 2024 and 2023.

The Company recognized $35,000 and approximately $40,200 of interest expense related to the guaranteed coupon for the years ended December 31, 2024 and 2023, respectively.

The Company adopted ASU 2020-06 effective January 1, 2023, which resulted in the reversal of the original BCF amount to additional paid in capital of approximately $0.2 million, reversal of the unamortized debt discount of approximately $0.1 million related to the BCF and the balance of $0.1 million being recorded through retained earnings.

*Other short-term advances*

 

As of December 31, 2024, other short-term advances consist of the following amounts obtained from various employees and related parties:

---

| | | |
|:---|:---|:---|
| **Other Advances** | **December 31, 2024** | **December 31, 2023** |
| Short term advance from CFO – Related Party | $76050 | $35050 |
| Short term advance from CEO – Related Party | 50000 | 50000 |
| Short term advances – bridge investors & others | 210000 | 210000 |
| Short term advances – Autotelic Inc. – Related Party | 2085000 | 1470000 |
|  | $2421050 | $1765050 |

---

In May 2021, Autotelic provided an additional short-term funding of approximately $0.3 million to the Company, which was converted into the August 2021 Notes. Autotelic provided an additional $0.1 million short term loan to the Company during the year ended December 31, 2022. During the year ended December 31, 2023, Autotelic provided $1.4 million in various short-term loans to the Company. During the year ended December 31, 2024 Autotelic Inc. provided additional short-term funding of $614,000 to the Company. As such, approximately $2.1 million was outstanding and payable to Autotelic at December 31, 2024.

The Company's CFO was owed approximately $25 thousand at December 31, 2022. During the year ended December 31, 2023, the company's CFO provided additional short-term advance of $10 thousand. During the year ended December 31, 2024, the CFO provided additional short-term funding of $41 thousand. As such, approximately $76 thousand was outstanding from the Company's CFO at December 31, 2024.

In December 2023, the Company received $50 thousand from the company's CEO. As such, $50 thousand was outstanding to the Company's CEO at December 31, 2024.

As of December 31, 2024 and December 31, 2023, respectively, approximately $210,000 was outstanding as short-term advances from certain bridge investors.

**NOTE 6 - JOINT VENTURE WITH GMP BIO AND AFFILIATES, EQUITY METHOD INVESTMENT**

On March 31, 2022, the Company entered into (i) a joint venture (the "*JV*") agreement with Dragon and GMP Bio, both affiliates of GMP, (and the Company, Dragon and GMP Bio are collectively called the "*Parties*") (the "*JVA*"), (ii) a license agreement for rights to OT-101 (the "*US License Agreement*") for the territory within the United States of America (the "*US*") with Sapu Holdings, LLC, a subsidiary of GMP Bio and (iii) a license agreement for rights to OT-101 for the rest of the world with GMP Bio (the "*Ex-US Rights Agreement*", and the US License Agreement and the Ex-US License Agreement are collectively called the "*Agreements*"). For more information on the JV, JVA, and Agreements, refer to our 2022 Annual Report on Form 10-K/A filed with the SEC on April 19, 2023.

As of the effective date of the formation of the JV, the combined enterprise value of GMP Bio was approximately $50.4 million, comprising of the fair value of the Company's investment in GMP Bio of approximately $22.7 million and the total original capital contributions by Dragon Overseas of approximately $27.7 million. As of December 31, 2024, the JV had approximately $24.4 million in assets, recorded approximately $1.2 million in liabilities and incurred approximately $9.2 million and $6.5 million in operational expenses for the years ended December 31, 2024 and 2023, respectively. While GMP's fiscal year commences on April 1 and ends on March 31, the Company has reported the operational expenses for the same fiscal period as the Company. The JV has determined to changing the fiscal year to an annual year and plans to do it soon.

In late 2023, the JV initiated a plan to start evaluating various nanoparticles that could treat various cancers. In this regard, the JV identified a total of 4 compounds, in addition to OT-101, which had the potential of significant revenue generation for the JV. In the same year, the JV signed a lease agreement to set up a GMP manufacturing facility in San Diego ("*SD*"), California. The main purpose of this facility was to initially commence an aggressive formulation development of newly planned nanoparticle platform ("*Nano Platform*"). The GMP manufacturing facility was initiated in January 2024. Upon the initiation of this facility by the JV, the JV commenced the development work on two of the four identified compounds, as well as other activities, in tandem with the development of OT-101. The JV has since completed the formulation development of one of the products and is moving to complete the formulation development for the three additional products. The JV is also working on improved formulations for OT-101 with new nanoparticle sizes. The JV also has started clinical development for OT-101 for pancreatic cancer. Significant progress has been made in the development of the products and the JV anticipates to complete the formulation development work in 2025 and pushing to initiate clinical trials for the various compounds. In late 2024, the GMP facility in San Diego was issued a Drug Manufacturing License by the State of California Department of Public Health and Food and Drug Branch. Further, in late 2024, the JV identified a sixth candidate as a compound for development for the JV and has already started to work on the formulation development of that compound as well. All manufacturing including Phase 1 clinical trial materials will be performed at the SD site.

Further, in late 2024, the JV identified a sixth candidate as a compound for development for the JV and has already started to work on the formulation development of that compound as well. In early 2025, the Company announced that it had entered into a strategic partnership with Shanghai Medicilon, Inc. ("*Medicilon*") to access its industry-leading rapid investigational new drug ("*IND*") development platform to support up to 20 IND projects, which the JV can also utilize to support their INDS. All six of our compounds the JV is developing are planned to be these INDs and are focused on becoming next-generation anticancer agents. The JV anticipates that all these six anticancer agents have the potential to become significant growth contributors to the JV, which in turn would add substantial value to the Company. The Company successfully completed a Phase 1 clinical trial evaluating OT-101, in combination with IL-2 for advanced or metastatic solid tumors. These results set the stage for new studies that combine OT-101, an antisense therapeutic targeting Transforming Growth Factor Beta 2 (TGFβ2), with checkpoint inhibitors ("CKIs") and recombinant IL-2 (aldesleukin) ("IL-2"). The Phase 1 trial (ClinicalTrials.gov ID: NCT04862767) investigated the safety and tolerability of OT-101 in combination with recombinant IL-2 in patients with advanced or metastatic solid tumors. The combination showed a tolerable safety profile at the planned dosing schedule, with no unexpected safety signals identified. Based on the favorable safety data, Oncotelic plans to advance OT-101 plus IL-2 into further clinical studies, exploring synergies with CKIs such as PD-1 blockers. The Company elected the fair value option under subsection of Section 825-10-15 to account for its equity-method investment as the Company believes that it the most appropriate method to properly value the Company and record a change in value when and upon conducting a fair value assessment. During the year ended December 31, 2023, and based on the results of the valuation study and the 45% ownership of the Company in GMP Bio, the Company had reported a change in fair value of the Company's investment in the JV of approximately $13,000 for the year December 31, 2023. As of December 31, 2024, as the operations of the JV are proceeding as planned, the Company assessed the fair value of its investment in the JV and determined that no change in the fair value is required until a triggering event has occurred, similar to, but not limited to, any fund raising event, entering into an IPO or any other major event enabling the Company to reassess the fair value of its investment in the JV.

A summary of the change in fair value of our investment in GMP Bio, as of December 31, 2024 and 2023 is shown below:

SCHEDULE OF CHANGE IN FAIR VALUE OF OUR INVESTMENT

---

| | | |
|:---|:---|:---|
|  | December 31, 2024 | December 31, 2023 |
| Balance at January 1, 2024 and 2023 | $22653225 | $22640519 |
| Add: change in fair value of investment in GMP Bio | - | 12706 |
| Balance at December 31, 2024 and 2023 | $22653225 | $22653225 |

---

For information on the various notes from GMP, refer to Note 5 – *GMP Notes* of the Notes to the Consolidated Financial Statements above.

**NOTE 7 - PRIVATE PLACEMENT (PPM-1) AND JH DARBIE FINANCING**

During the period from July 2020 to March 2021, the Company entered into subscription agreements with certain accredited investors pursuant to the JH Darbie Financing, whereby the Company issued and sold a total of 100 Units, for total gross proceeds of approximately $5 million, pursuant to the JH Darbie Placement Agreement, with each Unit consisting of:

&nbsp;&nbsp;&nbsp;&nbsp;■ 25,000 shares of Edgepoint Common Stock for a price of $1.00 per share of Edgepoint Common Stock.

■ One convertible promissory note, convertible into up to 25,000 shares of Edgepoint Common Stock, at a conversion price of $1.00 per share or up to 138,889 shares of the Company's Common Stock, at a conversion price of $0.18 per share.

■ 50,000 warrants to purchase an equivalent number of shares of Edgepoint Common Stock at $1.00 per share or an equivalent number of shares of the Company's Common Stock at $0.20 per share with a three-year expiration date. Either the Edgepoint or the Company's warrants would
 be exercised.

During the period between July 2023 and January 2024, the Company converted the debt of forty six accredited investors from the JH Darbie Financing (now referred to as "*PPM-1*") into the new subscription agreements under the new financing ("*PPM-2*"- See Note 8 below), which resulted in conversion of $2.35 million of old debt into new debt to the Company.

As of December 31, 2024, and 2023, funds received under the JH Darbie Financing, net of debt discounts, consist of the following amounts:

SCHEDULE OF FUNDS RECEIVED UNDER THE SUBSCRIPTION AGREEMENT

---

| | | |
|:---|:---|:---|
|  | **December 31,** <br> **2024** | **December 31,** <br> **2023** |
| **Convertible promissory notes** |  |  |
| Subscription agreements - accredited investors | $- | $311693 |
| Subscription agreements – related party | - | - |
| Total convertible promissory notes | $- | $311693 |

---

The Company incurred approximately $0.64 million of issuance costs, including legal costs of approximately $39,000, that are incremental costs directly related to the issuance of the various instruments bundled in the offering. As of the date of this Report, the PPM notes are in default.

Concurrently with the sale of the Units, JH Darbie was granted, for nominal consideration, a warrant, exercisable over a five-year period, to purchase 10% of the number of Units sold in the JH Darbie Financing. As such, the Company granted 10 Units to JH Darbie pursuant to the JH Darbie Placement Agreement.

The terms of convertible notes are summarized as follows:

&nbsp;&nbsp;&nbsp;&nbsp;■ Term: Through March 31, 2023.

■ Coupon: 16 %.

■ Convertible at the option of the holder at any time in the Company's
 Common Stock or Edgepoint Common Stock.

■ The conversion price is initially set at $0.18 per share for the Company's Common Stock or $1.00 for Edgepoint Common Stock, subject to adjustment.

In February 2022, the Company and all except one of the Investors agreed to extend the maturity date of the Notes from March 31, 2022, to March 31, 2023. In consideration for the extension of the Notes, the Company issued to the Investors an aggregate of 33,000,066 Oncotelic Warrants at a price of $0.15 per share of Company's Common Stock. Each Investor will be entitled to receive 333,334 Oncotelic Warrants for each Unit purchased. Upon the amendment of the terms of the convertible notes under the private placement memorandum. As incentive to extend the maturity date, approximately 33 million warrants were issued to the Unit Holders who participated in the amendment, the Company repaid the 1-unit holder who did not participate in the amendment shortly after March 31, 2022. Further, during the year ended December 31, 2023, the Company repaid two of the unit holders, who held 5 units and opted not to participate in the new JH Darbie financing. While the Company had been in default under the PPM-1 since April 2023, as of the date of this Annual Report, with the conversion of the rest of the Note Holders under the PPM-1, the event of default has been addressed.

The Company recognized amortization expense related to the debt discount and debt issuance costs of approximately $0 and 8,400 for the years ended December 31, 2024 and 2023, respectively, which is included in interest expense in the statements of operations.

**NOTE 8 – PRIVATE PLACEMENT -2 (PPM-2) AND JH DARBIE FUNDING**

During the period between July 2023 to January 2024, the Company entered into a series of subscription agreements with forty six accredited investors (the "Financing") whereby the Company issued and converted a total of 94 Units from the previous PPM ("*PPM -1*"- See Note 7 above) into the current subscription agreements under the PPM-2, which resulted in conversion of $2.35 million of old debt into new debt to the Company; and the Company did not receive any cash proceeds through the July 2023 through January 2024 conversions., with each Unit consisting of:

● One 16 % convertible unsecured promissory note (the "Note") of $25,000 , convertible into up to 250,000 shares of the Company's common stock (par value of $0.01) based on a conversion price of $0.10 per share.

● 250,000 warrants to purchase an equivalent number of shares of the Company's common stock at a strike price of $0.12 per share ("Oncotelic warrant").

JH Darbie and the Company are parties to a March 2023 placement agent agreement ("Agreement") pursuant to which DH Darbie had the right to sell a minimum of 10 Units and a maximum of 200 Units on a best-efforts basis. For the 4 tranches of conversion related to PPM 2, placement agent fees of $377,500 were paid to JH Darbie. Based on the placement agent agreement, JH Darbie was entitled to a non-refundable $25,000 fee to start the due diligence process and 2% due diligence fees and 13% commissions on all subsequent conversions or new funding. In addition, the Company provided warrant coverage equal to 13 % of all of the units sold to JH Darbie. As the Company converted an aggregate of 94 units, JH Darbie was entitled to earn a total of 3,055,000 warrants. A total of 5 unit holders under the PPM-1 opted not to participate in the PPM-2.

In connection with the consummation of Tranche 1, 2 and 3 and 4 of the July 2023 PPM, the Company entered into a Registration Rights Agreement granting certain registration rights with respect to the shares of the Company's Common Stock issued in connection with the financing, as well as the shares of the Company's Common Stock issuable upon exercise of the Warrants. The issuance of the Units is exempt from the registration requirements of the Securities Act of 1933, as amended ("Securities Act"), in reliance on the exemptions provided by Section 4(a)(2) of the Securities Act as provided in Rule 506 of Regulation D promulgated thereunder. The shares of common stock and warrants and any shares of common stock issuable upon exercise of the warrants, have not been registered under the Securities Act or any other applicable securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act.

As of December 31, 2024, and December 31, 2023, debt recorded under PPM-2, net of debt discounts and including accrued interest, consist of the following amounts:

---

| | | |
|:---|:---|:---|
|  | **December 31,** <br> **2024** | **December 31,** <br> **2023** |
| **Convertible promissory notes** |  |  |
| Subscription agreements - accredited investors | $2308638 | $1898468 |
| Total convertible promissory, net of discounts | $2308638 | $1898468 |

---

The Company incurred approximately $0.4 million of issuance costs under the PPM-2 and are incremental costs directly related to the issuance of the various instruments bundled in the offering. Concurrently with the PPM- 2, JH Darbie was granted a total of 3,055,000 stock warrants, exercisable over a two-year period.

The terms of convertible notes are summarized as follows:

● Term: through December 31, 2025

● Coupon: 16 %

● Convertible at the option of the holder at any time into the Company's common stock

● Conversion price is set at $0.10 per share subject to standard anti-dilution provision.

Management reviewed the guidance per ASC 470-60 *Troubled debt restructurings* and ASC 470-50 *Debt- Modifications and Extinguishments* and concluded that the terms of the agreements were substantially different and, accounted for the transaction as a debt extinguishment. The transaction related to T4 during the year ended December 31, 2024 resulted in a loss from debt extinguishment of approximately $88,000, which is presented in other expense in the consolidated statements of operations for the year ended December 31, 2024. The estimated volume weighted grant date fair value of approximately $0.026 per share associated with the warrants to purchase up to 3,390,000 shares of common stock issued in this offering, or a total of approximately $88,000, was recorded to additional paid-in capital. All warrants sold in this offering have an exercise price of $0.12 per share of the Company stock, subject to adjustment, are exercisable immediately and expire two years from the date of issuance. The fair value of the warrants was estimated using a Black Scholes valuation models using the following input values:

SCHEDULE OF FAIR VALUE WARRANTS

---

| | |
|:---|:---|
| Expected Term | 2 years |
| Expected volatility | 173% |
| Risk-free interest rates | 4.29% |
| Dividend | 0.00% |

---

The Company recorded approximately $318,000 as an initial debt discount related to the four tranches of PPM 2. The Company recognized amortization expense related to the debt discount and debt issuance costs of approximately $157,000 and $50,000 for the years ended December 31, 2024 and 2023, respectively, which is included in interest expense in the statements of operations

During the years ended December 31, 2024 and 2023, the Company incurred approximately $363,000 and $122,000 of interest expense related to the convertible notes.

**NOTE 9 - RELATED PARTY TRANSACTIONS**

*Master Service Agreement with Autotelic Inc.*

 

In October 2015, Oncotelic Inc. entered into a Master Service Agreement (the "*MSA*") with Autotelic Inc. ("*Autotelic*"), a related party that is partly owned by Dr. Trieu. Dr. Trieu, a related party, is a control person in Autotelic. Autotelic currently owns less than 10% of the Company. The MSA stated that Autotelic will provide business functions and services to the Company and allowed Autotelic to charge the Company for these expenses paid on its behalf. The MSA includes personnel costs allocated based on amount of time incurred and other services such as consultant fees, clinical studies, conferences and other operating expenses incurred on behalf of the Company. The MSA requires a 90-day written termination notice in the event either party requires to terminate such services.

Expenses related to the MSA were $2,000 and approximately $12,000 for the years ended December 31, 2024 and 2023, respectively. The Company owed Autotelic, Inc. approximately $0.3 million at December 31, 2024 and December 31, 2023 respectively.

*License Agreement with Autotelic Inc.*

 

In September 2021, the Company entered into an exclusive License Agreement with Autotelic. For more information on the exclusive license Agreement with Autotelic, refer to our 2023 Annual Report on Form 10-K filed with SEC on April 12, 2024.

*Notes Payable and Short-Term Loan – Related Party*

 

In April 2019, the Company issued a convertible note to Dr. Trieu totaling $164,444, including OID of $16,444, receiving net proceeds of $148,000, which was used by the Company for working capital and general corporate purposes. The Company issued a Fall 2019 Note to Dr. Trieu in the principal amount of $250,000. Dr. Trieu also offset certain amounts due to him in the amount of $35,000 and was converted into the Fall 2019 debt. During the year ended December 31, 2020, Dr. Trieu purchased a total of 5 Units under the private placement for a gross total of $250,000. During the year ended December 31, 2023, Dr Trieu provided short term loan of $50 thousand to the Company. The balance due and payable to Dr. Trieu, as of December 31, 2024 and 2023, respectively, was $50,000.

In May 2021, Autotelic provided an additional short-term funding of $250,000 to the Company, which was converted into the August 2021 Notes. Autotelic provided an additional $120,000 short-term loan to the Company during the year ended December 31, 2022. During the year ended December 31, 2023, Autotelic provided $1.4 million in short term advances to the Company. During the year ended December 31, 2024, Autotelic provided and additional $0.7 million. As such, approximately $2.1 million was outstanding and payable to Autotelic at December 31, 2024.

*Artius Consulting Agreement*

 

In March 2020, the Company and Artius Bioconsulting, LLC ("*Artius*"), for which Mr. King is the Managing Member, entered into an amendment to the Consulting Agreement dated December 1, 2018, under which Artius agreed to serve as a consultant to the Company for services related to the Company's business from time to time, effective December 1, 2019 (the "*Effective Date*") (the "*Artius Agreement*"). For more information on this Agreement, refer to our 2023 Annual Report on Form 10-K filed with the SEC on April 12, 2024.

No expense was recorded during the year ended December 31, 2024, or 2023, respectively, related to this Agreement.

*Mosaic Consulting Agreement*

 

In July 2024, the Company and Mosaic, for which Mr. King is the Chief Executive Officer, entered into an consulting agreement ("*Mosaic Agreement*"), under which Mosaic agreed to serve as a consultant to the Company for services related to the JV's chemistry, manufacturing and controls for the San Diego site on a month to month basis at a rate of $7,000 per month. This cost was entirely borne by the JV.

No expense was recorded during the year ended December 31, 2024, related to the Mosaic Agreement.

*Maida Consulting Agreement*

 

Effective May 5, 2020, the Company and Dr. Maida entered into an independent consulting agreement, commencing April 1, 2020 (the "Maida Agreement"), under which Dr. Maida will assist the Company in providing medical expertise and advice from time to time in the design, conduct and oversight of the Company's existing and future clinical trials. For more information on this Agreement, refer to our 2021 Annual Report on Form 10-K filed with the SEC on April 15, 2022.

The Company recorded an expense of $0 during the years ended December 31, 2024 and 2023, respectively, related to this Agreement. Effective April 1, 2022, Dr Maida's compensation is being borne by the JVA with GMP Bio.

**NOTE 10 - EQUITY PURCHASE AGREEMENT AND REGISTRATION RIGHTS AGREEMENT**

On May 3, 2021, the Company entered into an Equity Purchase Agreement ("EPL") and Registration Rights Agreement with Peak One Opportunity Fund LP ("Peak One" or the "Investor"). For further information on EPL, refer to our 2023 Annual Report on Form 10-K filed with the SEC on April 12, 2024. The Company also filed a post-effective amendment registration statement on Form S-1 with the Commission on April 12, 2024, and the Form S-1 was declared effective on April 22, 2024. The Company filed the prospectus under rule 424b3 with the SEC on April 26, 2024.

During year ended December 31, 2024 and 2023, the Company did not sell any shares of Common Stock under the EPL.

**NOTE 11 – STOCKHOLDERS' EQUITY**

The following transactions affected the Company's Stockholders' Equity:

<u>Issuance of Common Stock during the year ended December 31, 2024</u>

In February 2024, Fourth Man partially converted $35,000 of their debt. In connection with the partial Note conversion, the Company issued 500,000 shares of Common Stock to Fourth Man.

In May 2024, Blue Lake converted the balance of their $531,000 debt, inclusive of accrued interest and penalty, into 7,605,760 shares of Common Stock of the Company.

<u>Issuance of Common Stock during the year ended December 31, 2023</u>

In February 2023, Fourth Man partially converted $71,750 of their debt. In connection with the partial Note conversion, the Company issued 1,025,000 shares of Common Stock to Fourth Man.

In June 2023, Blue Lake converted the full remainder of their $181,750 debt, accrued interest and penalty. In connection with this Note conversion, the Company issued 3,466,853 shares of Common Stock to Blue Lake.

In May and June 2023, Fourth Man converted $50,000 in principal and $30,000 in accrued interest into 1,192,857 shares of Common Stock.

In July 2023, Fourth Man converted approximately $43,000 balance in principal and accrued interest into 627,538 shares of Common Stock.

In October 2023, Fourth Man converted approximately $72,000 in principal, accrued interest and legal fees into 1,025,000 shares of Common Stock.

For further information on Common Stock issuance, refer to our 2023 Annual Report on Form 10-K filed with the SEC on April 12, 2024.

**NOTE 12 – STOCK-BASED COMPENSATION**

*Options*

Pursuant to the Merger, the Company's Common Stock and corresponding outstanding options survived. The below information details the Company's associated option activity pre and post-merger.

As of December 31, 2024, the Company had options to purchase Common Stock that were outstanding under three stock option plans – the 2017 Equity Incentive Plan (the "*2017 Plan*"), the 2015 Equity Incentive Plan (the "*2015 Plan*") and the 2005 Stock Plan (the "*2005 Plan*"). Under the 2017 Plan, up to 2,000,000 shares of the Company's Common Stock may be issued pursuant to awards granted in the form of nonqualified stock options, restricted and unrestricted stock awards, and other stock-based awards. Under the 2015 and 2005 Plans, taken together, up to 27,250,000 shares of the Company's Common Stock may be issued pursuant to awards granted in the form of incentive stock options, nonqualified stock options, restricted and unrestricted stock awards, and other stock-based awards.

Employees, consultants, and directors are eligible for awards granted under the 2017 and 2015 Plans. Since the adoption of the 2015 Plan, no further awards may be granted under the 2005 Plan, although options previously granted remain outstanding in accordance with their terms.

Compensation based stock option activity for qualified and unqualified stock options are summarized as follows:

SCHEDULE OF COMPENSATION BASED STOCK OPTION ACTIVITY

---

| | | |
|:---|:---|:---|
| <br>**For the year ended December 31, 2024** |<br>**Shares** | **Weighted**<br>**Average**<br>**Exercise Price** |
| Outstanding at January 1, 2024 | 24177761 | $0.21 |
| Expired or cancelled | - | - |
| Outstanding at December 31, 2024 | 24177761 | 0.21 |
| Options exercisable at December 31, 2024 | 13985261 |  |

---

---

| | | |
|:---|:---|:---|
| <br>**For the year ended December 31, 2023** |<br>**Shares** | **Weighted**<br>**Average**<br>**Exercise Price** |
| Outstanding at January 1, 2023 | 25690261 | $0.23 |
| Expired or cancelled | (1512500) | 0.46 |
| Outstanding at December 31, 2023 | 24177761 | 0.21 |
| Options exercisable at December 31, 2023 | 13985261 |  |

---

The following table summarizes information about options to purchase shares of the Company's Common Stock outstanding and exercisable at December 31, 2024:

SCHEDULE OF OPTIONS TO PURCHASE SHARES OF COMMON STOCK OUTSTANDING AND EXERCISABLE

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Exercise prices** | **Outstanding** <br> **Options**  | **Weighted-** <br> **Average** <br> **Remaining Life** <br> **In Years**  | **Weighted-** <br> **Average**<br> **Exercise** <br> **Price**  | **Number** <br> **Exercisable**  |
| $0.1 to $0.15 | 16250000 | 7.2 | $0.12 | 6057500 |
| 0.16 to $0.21 | 5502761 | 6.5 | 0.16 | 5502761 |
| 0.22 to $0.37 | 1550000 | 3.0 | 0.28 | 1550000 |
| 0.38 to $0.72 | 500000 | 1.2 | 0.73 | 500000 |
| 0.73 to $15.0 | 375000 | 0.4 | 4.14 | 375000 |
|  | 24177761 | 6.5 | $0.21 | 13985261 |

---

The compensation expense attributed to the issuance of the options is recognized as they are vested. The employee stock option plan stock options are generally exercisable for ten years from the grant date and vest over various terms from the grant date to three years.

As of December 31, 2024, there was no unamortized stock compensation cost related to the stock options granted during the year ended December 31, 2022. Of the approximately 10 million unvested stock options, the vesting criteria for 7.3 million options is still being evaluated as on the date of this Report, as those options are subject to individual milestone achievements. For more information on the stock options, refer to our 2023 Annual Report on Form 10-K filed with the SEC on April 12, 2024.

The Company amortized $0 stock compensation expense during the years ended December 31, 2024 and 2023, respectively on the 2021 and 2022 grants.

*Warrants*

 

The Company has issued warrants in connection with the various financings conducted by the Company. For more information on the warrant issuances, refer to our 2023 Annual Report on Form 10-K filed with the SEC on April 12, 2024.

The issuance of warrants to purchase shares of the Company's Common Stock, including those attributed to debt issuances, for the years ended December 31, 2024 and 2023, respectively are summarized as follows:

SCHEDULE OF WARRANTS ACTIVITY

---

| | | |
|:---|:---|:---|
| **For the year ended December 31, 2024** | **Shares** | **Average** <br> **Exercise Price**  |
| Outstanding at January 1, 2024 | 61500355 | $0.15 |
| Issued during the year ended December 31, 2024 | 3390000 | 0.12 |
| Exercised / cancelled during the year ended December 31, 2024 | (33000066) | 0.15 |
| Outstanding at December 31, 2024 | 31890289 | $0.13 |

---

---

| | | |
|:---|:---|:---|
| **For the year ended December 31, 2023** | **Shares** | **Average** <br> **Exercise Price**  |
| Outstanding at January 1, 2023 | 81072855 | $0.18 |
| Issued during the year ended December 31, 2023 | 23165000 | 0.12 |
| Exercised / cancelled during the year ended December 31, 2023 | (42737500) | 0.20 |
| Outstanding at December 31, 2023 | 61500355 | $0.15 |

---

The following table summarizes information about warrants outstanding and exercisable at December 31, 2024:

SCHEDULE OF WARRANTS OUTSTANDING AND EXERCISABLE

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Outstanding and exercisable** | **Outstanding and exercisable** | **Outstanding and exercisable** | **Outstanding and exercisable** |
|<br>**Exercise Price** | **Number** <br> Outstanding | **Weighted-** <br> **Average** <br> **Remaining Life** <br> **in Years**  | **Weighted-** <br> **Average** <br> **Exercise** <br> **Price**  | **Number** <br> **Exercisable**  |
| $0.13 | 961539 | 2.00 | 0.13 | 961539 |
| 0.20 | 4373750 | 2.26-2.47 | 0.20 | 4373750 |
| 0.12 | 11300000 | 0.51 | 0.12 | 11300000 |
| 0.12 | 11865000 | 0.81 | 0.12 | 11865000 |
| 0.12 | 3390000 | 1.08 | 0.12 | 3390000 |
|  | 31890289 | 0.99 | $0.13 | 31890289 |

---

**NOTE 13 – INCOME TAXES**

Significant components of the Company's deferred tax assets and liabilities for federal and state income taxes as of December 31, 2024 and 2023 are as follows in thousands:

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2024** | **December 31,**<br>**2023** |
| **Deferred tax assets:** |  |  |
| Stock-based compensation | $1438 | $1438 |
| Assets | 1174 | 1304 |
| Liability accruals | 311 | 324 |
| R&D Credit | 1372 | 1372 |
| Capital Loss | 528 | 528 |
| Deferred state tax | (2087) | (2065) |
| Net operating loss carry forward | 10024 | 10489 |
| Total gross deferred tax assets | 12760 | 13390 |
| Less - valuation allowance | (12760) | (13390) |
| Net deferred tax assets | $- | $- |

---

The Company had gross deferred tax assets, which primarily relate to net operating loss carryforwards. As of December 31, 2024, the Company had gross federal and state net operating loss carryforwards, which are available to offset future taxable income, if any. The Company recorded a valuation allowance in the full amount of its net deferred tax assets since realization of such tax benefits has been determined by our management to be less likely than not.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Portions of these carryforwards will expire through 2038, if not otherwise utilized. The Company's utilization of net operating loss carryforwards could be subject to an annual limitation. as a result of certain past or future events, such as stock sales or other equity events constituting a "change in ownership" under the provisions of Sections 382 and 383 of the Internal Revenue Code of 1986, as amended, and similar state provisions. The annual limitations could result in the expiration of net operating loss carryforwards and tax credits before they can be utilized. We have not performed a formal analysis, but we believe our ability to use such net operating losses and tax credit carryforwards will be subject to annual limitations, due to change of ownership control provisions under Section 382 and 383 of the Internal Revenue Code, which would significantly impact our ability to realize these deferred tax assets.

**NOTE 14 – COMMITMENTS AND CONTINGENCIES**

*Leases*

 

Currently, the Company is leasing the office located at 29397 Agoura Road, Suite 107, Agoura Hills, CA 91301 on a month-to-month basis until such time a new office is identified. The Company believes the office is sufficient for its current operations.

*PointR Merger Consideration*

 

The total purchase price in the PointR Merger of $17,831,427 included $2,625,000 of contingent consideration of shares issuable to PointR shareholders, upon achievement of certain milestones. For more information on the PointR Merger Contingent Consideration, refer to our 2021 Annual Report on Form 10-K filed with the SEC on April 12, 2024.

 *Third Party Service Provider Claim*

 

The Company had disputed a judgement of $20,000 for a non-payment to a third service provider. The Company considered the claim to be immaterial to the financial position of the Company. The Company had filed a counter claim on the third-party service provider as the Company believed the claim to be false and malicious to the interests of the Company. In March 2024, The Honorable Court overruled the previous judgement and ruled in favor of the Company.

*Other claims*

 

From time to time, the Company may become involved in certain claims arising in the ordinary course of business. One of the Company's ex-employees has made a breach of employment contract claim against the Company. The Company and its legal counsel are evaluating the validity of the claim, as the Company believes that such claim has limited merits and is hopeful to attain a positive outcome for such claim. Since the Company and its legal counsel are still evaluating the claim, we are unable to quantify the amount such claim would be settled at, if at all settled.

**NOTE 15 – SUBSEQUENT EVENTS**

In March 2025, the Company announced of successfully completing a Phase 1 clinical trial evaluating OT-101, in combination with IL-2 for advanced or metastatic solid tumors, on behalf of the JV. These results set the stage for new studies that combine OT-101, an antisense therapeutic targeting Transforming Growth Factor Beta 2 (TGFβ2), with checkpoint inhibitors ("CKIs") and recombinant IL-2 (aldesleukin) ("IL-2"). The Phase 1 trial (ClinicalTrials.gov ID: NCT04862767) investigated the safety and tolerability of OT-101 in combination with recombinant IL-2 in patients with advanced or metastatic solid tumors. The combination showed a tolerable safety profile at the planned dosing schedule, with no unexpected safety signals identified. Based on the favorable safety data, the JV, through the Company, plans to advance OT-101 plus IL-2 into further clinical studies, exploring synergies with CKIs such as PD-1 blockers.

**ONCOTELIC THERAPEUTICS, INC.**

309,717,647 SHARES OF COMMON STOCK

**PROSPECTUS**

YOU SHOULD RELY ONLY ON THE INFORMATION CONTAINED IN THIS DOCUMENT OR THAT WE HAVE REFERRED YOU TO. WE HAVE NOT AUTHORIZED ANYONE TO PROVIDE YOU WITH INFORMATION THAT IS DIFFERENT. THIS PROSPECTUS IS NOT AN OFFER TO SELL COMMON STOCK AND IS NOT SOLICITING AN OFFER TO BUY COMMON STOCK IN ANY STATE WHERE THE OFFER OR SALE IS NOT PERMITTED.

The date of this prospectus is November , 2025

**PART II**

**INFORMATION NOT REQUIRED IN THE PROSPECTUS**

Other Estimated Expenses of Issuance and Distribution

---

| | |
|:---|:---|
| Securities and Exchange Commission registration fee | $3636 |
| Legal fees | 15000 |
| Accounting fees and expenses | $10000 |
| Total | $33636 |

---

All amounts are estimates other than the SEC's registration fee. We are paying all expenses of the Offering listed above. No portion of these expenses will be borne by the Selling Shareholder. The Selling Shareholder, however, will pay any other expenses incurred in selling its common stock, including any brokerage commissions or costs of sale.

**Indemnification of Directors and Officers**

Section 145 of the Delaware General Corporation Law permits a corporation to indemnify any director or officer of the corporation against expenses (including attorney's fees), judgments, fines and amounts paid in settlement actually and reasonably incurred in connection with any action, suit or proceeding brought by reason of the fact that such person is or was a director or officer of the corporation, if such person acted in good faith and in a manner that he or she reasonably believed to be in, or not opposed to, the best interests of the corporation, and, with respect to any criminal action or proceeding, if he or she had no reason to believe his or her conduct was unlawful. In a derivative action, one brought by or on behalf of the corporation), indemnification may be provided only for expenses actually and reasonably incurred by any director or officer in connection with the defense or settlement of such an action or suit if such person acted in good faith and in a manner that he or she reasonably believed to be in, or not opposed to, the best interests of the corporation, except that no indemnification shall be provided if such person shall have been adjudged to be liable to the corporation, unless and only to the extent that the court in which the action or suit was brought shall determine that the defendant is fairly and reasonably entitled to indemnity for such expenses despite such adjudication of liability.

Our Articles of Incorporation contain a provision that no director or officer will be personally liable to us or our stockholders for damages regarding breaches of fiduciary duty. This limitation on liability may reduce the likelihood of derivative litigation against our officers and directors and may discourage or deter our stockholders from suing our officers and directors based upon breaches of their duties to our Company.

Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Company pursuant to the foregoing provisions, or otherwise, the Company has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Company of expenses incurred or paid by a director, officer or controlling person of the Company in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Company will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such issue.

**Recent Sales of Unregistered Securities**

No unregistered securities were issued during the fiscal year that were not previously reported in a Quarterly Report on Form 10-Q or Current Report on Form 8-K

**Exhibits and Financial Statement Schedules**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** |
| <br>**Exhibit Number** | <br>**Description** | **Form** | **Filing Date** | **Exhibit Number** | **Filed Herewith** |
| 3.1 | [Restated Certificate of Incorporation of the Registrant, as amended by Certificates of Amendment dated June 22, 1995, November 15, 1996, July 14, 2005, June 2, 2009, February 8, 2010, August 5, 2010, February 22, 2011, May 29, 2012, December 27, 2012, July 17, 2013, June 16, 2016 and June 20, 2018.](https://www.sec.gov/Archives/edgar/data/908259/000119312518248505/d587784dex31.htm) | 10-Q | 8/14/2018 | 3.1 |  |
| 3.2 | [Certificate of Amendment to the Certificate of Incorporation dated September 24, 2020.](https://www.sec.gov/Archives/edgar/data/908259/000149315221008920/ex3-5.htm) | 10-K | 04/15/2021 | 3.5 |  |
| 3.3 | [Certificate of Designation of Preferences, Rights and Limitations of Series A Convertible Preferred Stock of the Company.](https://www.sec.gov/Archives/edgar/data/908259/000119312519119188/d737649dex31.htm) | 8-K | 11/12/2019 | 3.1 |  |
| 3.4. | [Amended and Restated By-Laws](https://www.sec.gov/Archives/edgar/data/908259/000149315223018380/ex3-2.htm) | 8-K | 05/19/2023 | 3.2 |  |
| 4.1 | [Form of Debenture, issued by the Company to the Bridge Investors.](https://www.sec.gov/Archives/edgar/data/908259/000119312519109788/d735147dex42.htm) | 8-K | 4/18/2019 | 4.2 |  |
| 4.2 | [Form of Debenture, issued by the Company to Peak One Opportunity Fund, L.P. and TFK Investments, LLC Ex. 4.1 Form of Debenture, issued by the Company to the Bridge Investors.](https://www.sec.gov/Archives/edgar/data/908259/000119312519109788/d735147dex42.htm) | 8-K | 4/25/2019 | 4.2 |  |
| 4.3 | [Form of Debenture, issued by the Company to Peak One Opportunity Fund, L.P. and TFK Investments, LLC.](https://www.sec.gov/Archives/edgar/data/908259/000119312519109788/d735147dex41.htm) | 8-K | 6/20/2019 | 4.1 |  |
| 4.4 | [Convertible Promissory Note between Mateon Therapeutics, Inc. and PointR Data Inc. dated July 22, 2019.](https://www.sec.gov/Archives/edgar/data/908259/000149315219011006/ex4-1.htm) | 8-K | 7/24/2019 | 4.1 |  |
| 4.5 | [Form of Convertible Promissory Note, issued by the Company under the Note Purchase Agreement dated as of November 23, 2019.](https://www.sec.gov/Archives/edgar/data/908259/000149315219018313/ex10-1.htm) | 8-K | 11/25/2019 | 10.1 |  |
| 4.6 | [Loan, Secured Convertible Note Purchase, and Security Agreement between the Company and Golden Mountain Partners, LLC dated June 27, 2020](https://www.sec.gov/Archives/edgar/data/908259/000149315220021414/ex10-57.htm) | 10-Q | 11/16/2020 | 10.57 |  |
| 4.7 | [Secured Convertible Promissory Note between the Company and Golden Mountain Partners, LLC dated June 27, 2020](https://www.sec.gov/Archives/edgar/data/908259/000149315220021414/ex10-58.htm) | 10-Q | 11/16/2020 | 10.58 |  |
| 4.9 | [Form of Unsecured Convertible Note Purchase Agreement between the Company and Golden Mountain Partners dated January 31, 2022](https://www.sec.gov/Archives/edgar/data/908259/000149315222002955/ex10-1.htm) | 8-K | 02/02/2022 | 10.1 |  |

---

4.10 [Form of Convertible Promissory Note issued by the Company dated January 31, 2022](https://www.sec.gov/Archives/edgar/data/908259/000149315222002955/ex10-2.htm) 8-K 02/02/2022 10.2

4.11 [Form of Warrant](https://www.sec.gov/Archives/edgar/data/908259/000149315223024401/ex10-3.htm) 8-K 07/13/2023 10.3

4.12 [Form of Note](https://www.sec.gov/Archives/edgar/data/908259/000149315223024401/ex10-4.htm) 8-K 07/13/2023 10.4

4.13 [Senior Secured Promissory Note – Mast Hill](https://www.sec.gov/Archives/edgar/data/908259/000164117225022361/ex10-2.htm) 8-K 08/06/2025 10.2

5.1 Opinion
 of Sheppard Mullin Richter & Hampton LLP \*\*

10.1 [Technology Development Agreement, dated as of May 27, 1997, between the Registrant and the Arizona Board of Regents, acting for and on behalf of Arizona State University.](https://www.sec.gov/Archives/edgar/data/908259/0000914121-98-000287.txt) 10-K 4/15/1998 10.9

10.2 [Research Collaboration and License Agreement, dated as of December 15, 1999, between OXiGENE Europe AB and Bristol-Myers Squibb Company. \*](https://www.sec.gov/Archives/edgar/data/908259/000091412199001270/0000914121-99-001270.txt) 8-K 12/28/1999 99.1

10.3 [Amendment and Confirmation of License Agreement No. 206-01.LIC, dated as of June 10, 2002, between the Registrant and the Arizona Board of Regents, acting for and on behalf of Arizona State University.](https://www.sec.gov/Archives/edgar/data/908259/000090825902000008/exh1029.txt) 10-Q 8/14/2002 10.29

10.4 [Termination Agreement by and between OXiGENE Europe AB and Bristol-Myers Squibb Company dated as of February 15, 2002.](https://www.sec.gov/Archives/edgar/data/908259/000090825902000008/exh1014.txt) 10-Q 8/14/2002 10.14

10.5 [License Agreement No. 206-01.LIC by and between the Arizona Board of Regents, acting on behalf of and for Arizona State University, and OXiGENE Europe AB, dated August 2, 1999.](https://www.sec.gov/Archives/edgar/data/908259/000119312503033306/dex1027.htm) 10-K/A 8/12/2003 10.27

10.6 [Research and License Agreement between the Registrant and Baylor University, dated June 1, 1999.](https://www.sec.gov/Archives/edgar/data/908259/000119312503033306/dex1028.htm) 10-K/A 8/12/2003 10.28

10.7 [Agreement to Amend Research and License Agreement between the Registrant and Baylor University, dated April 23, 2002.](https://www.sec.gov/Archives/edgar/data/908259/000119312503033306/dex1029.htm) 10-K/A 8/12/2003 10.29

10.8 [Addendum to Research and License Agreement between the Registrant and Baylor University, dated April 14, 2003.](https://www.sec.gov/Archives/edgar/data/908259/000119312503033306/dex1030.htm) 10-K/A 8/12/2003 10.30

10.9 [Mateon Therapeutics, Inc. 2005 Stock Plan (as amended and restated on January 12, 2017). +](https://www.sec.gov/Archives/edgar/data/908259/000119312517009941/d328694dex103.htm) 8-K 1/13/2017 10.3

10.10 [Form of Incentive Stock Option Agreement under Mateon's 2005 Stock Plan. +](https://www.sec.gov/Archives/edgar/data/908259/000095013506001588/b58436oiexv10w29.htm) 10-K 3/14/2006 10.29

10.11 [Form of Non-Qualified Stock Option Agreement under Mateon's 2005 Stock Plan. +](https://www.sec.gov/Archives/edgar/data/908259/000095013506001588/b58436oiexv10w30.htm) 10-K 3/14/2006 10.30

10.12 [Form of Restricted Stock Agreement under Mateon's 2005 Stock Plan. +](https://www.sec.gov/Archives/edgar/data/908259/000095013506001588/b58436oiexv10w31.htm) 10-K 3/14/2006 10.31

10.13 [Mateon Therapeutics, Inc. 2015 Equity Incentive Plan (as amended and restated on May 24, 2018). +](https://www.sec.gov/Archives/edgar/data/908259/000119312518153640/d572271ddef14a.htm#toc572271_19) Definitive
 Proxy Statement on Schedule 14A 05/07/2018 Appendix
 A

10.14 [Amendment to the Oncotelic Therapeutics, Inc. 2015 Equity Incentive Plan](https://www.sec.gov/Archives/edgar/data/908259/000149315221009052/ex10-1.htm) S-8 04/16/2021 10.1

10.15 [Form of Option Agreement under Mateon's 2015 Equity Incentive Plan. +](https://www.sec.gov/Archives/edgar/data/908259/000119312515280950/d933792dex106.htm) 10-Q 8/6/2015 10.6

10.16 [Mateon Therapeutics, Inc. 2017 Equity Incentive Plan. +](https://www.sec.gov/Archives/edgar/data/908259/000119312517009941/d328694dex101.htm) 8-K 1/13/2017 10.1

10.17 [Form of Option Agreement under Mateon's 2017 Equity Incentive Plan. +](https://www.sec.gov/Archives/edgar/data/908259/000119312517009941/d328694dex102.htm) 8-K 1/13/2017 10.2

10.18 [Form of Indemnification Agreement. +](https://www.sec.gov/Archives/edgar/data/908259/000119312512351750/d354939dex102.htm) 10-Q 8/13/2012 10.2

10.19 [Form of Subscription Agreement for private placement transaction entered into on April 12, 2018.](https://www.sec.gov/Archives/edgar/data/908259/000119312518118546/d578672dex101.htm) 8-K 4/16/2018 10.1

10.20 [Form of Securities Purchase Agreement, dated as of April 17, 2019, by and among the Company and the Bridge Investors.](https://www.sec.gov/Archives/edgar/data/908259/000119312519109788/d735147dex103.htm) 8-K 4/18/2019 10.3

10.21 [Form of Note Purchase Agreement, dated as of November 23, 2019, by and among the Company and the investors identified therein.](https://www.sec.gov/Archives/edgar/data/908259/000149315219018313/ex4-1.htm) 8-K 11/25/2019 4.1

10.22 [Note Purchase Agreement between Mateon Therapeutics, Inc. and PointR Data Inc. dated July 22, 2019.](https://www.sec.gov/Archives/edgar/data/908259/000149315219011006/ex10-1.htm) 8-K 7/24/2019 10.1

10.23 [Employment Agreement dated August 23, 2019 between the Company and Dr. Vuong Trieu.](https://www.sec.gov/Archives/edgar/data/908259/000149315219013506/ex10-1.htm) 8-K 8/29/2019 10.1

10.24 [Employment Agreement dated August 23, 2019 between the Company and Mr. Amit Shah.](https://www.sec.gov/Archives/edgar/data/908259/000149315219013506/ex10-4.htm) 8-K 8/29/2019 10.4

10.25 [Consulting Agreement by Between the Company and Artius, dated March 9, 2020](https://www.sec.gov/Archives/edgar/data/908259/000149315220011563/ex10-1.htm) 8-K/A 6/22/2020 10.1

10.26 [Consulting Agreement by Between the Company and Dr. Maida, dated May 5, 2020](https://www.sec.gov/Archives/edgar/data/908259/000149315220011563/ex10-2.htm) 8-K/A 6/22/2020 10.2

10.27 [Investigational Product Supply and Use Authorization Agreement for OT-101 U.S. Expanded Access (IPSUA) dated September 5, 2019, between WideTrial and Oncotelic.](https://www.sec.gov/Archives/edgar/data/908259/000149315219013911/ex10-1.htm) 8-K 9/10/2019 10.1

10.28 [Agreement for Delivery and Licensed Use of Data Generated from OT-101 U.S. Expanded Access (Data License 1) dated September 5, 2019 between WideTrial and Oncotelic.](https://www.sec.gov/Archives/edgar/data/908259/000149315219013911/ex10-2.htm) 8-K 9/10/2019 10.2

10.29 [Agreement for Delivery and Licensed Use of WideTrial Bonus Dataset (Data License 2 Agreement) dated September 5, 2019 between WideTrial and Oncotelic.](https://www.sec.gov/Archives/edgar/data/908259/000149315219013911/ex10-3.htm) 8-K 9/10/2019 10.3

10.30 [Research and Services Agreement.](https://www.sec.gov/Archives/edgar/data/908259/000149315220004508/ex10-1.htm) 8-K 3/23/2020 10.1

10.31 [Supplement Research and Services Agreement.](https://www.sec.gov/Archives/edgar/data/908259/000149315220004508/ex10-2.htm) 8-K 3/23/2020 10.2

10.32 [Agreement between Oncotelic Inc, Autotelic Inc. and Autotelic BIO.](https://www.sec.gov/Archives/edgar/data/908259/000149315220011219/ex10-2.htm) 8-K 6/16/2020 10.1

10.33 [License, Development and Commercialization Agreement between Mateon Therapeutics, Inc. and Windlas Biotech Private Limited dated November 10, 2020](https://www.sec.gov/Archives/edgar/data/908259/000149315220021414/ex10-59.htm) 10-Q 11/16/2020 10.59

10.34 [Form of Securities Purchase Agreement by and between the Company and Geneva Roth Remark Holding, Inc dated May 25, 2021](https://www.sec.gov/Archives/edgar/data/908259/000149315221013368/ex10-1.htm) 8-K 06/01/2021 10.1

10.35 [Form of Note Purchase Agreement by and between the Company and Autotelic Inc. dated August 4, 2021](https://www.sec.gov/Archives/edgar/data/908259/000149315221018662/ex10-2.htm) 8-K 08/05/2021 10.2

10.36 [Licensing Agreement by and between the Company and Autotelic Inc dated August 31, 2021](https://www.sec.gov/Archives/edgar/data/908259/000149315221021927/ex10-1.htm) 8-K 09/03/2021 10.1

10.37 [Unsecured Convertible Note Purchase Agreement by and between the Company and Golden Mountain Partners LLC dated September 21, 2021](https://www.sec.gov/Archives/edgar/data/908259/000149315221023887/ex10-1.htm) 8-K 09/27/2021 10.1

10.38 [Licensing Agreement by and between the Company and Autotelic Inc dated September 30, 2021](https://www.sec.gov/Archives/edgar/data/908259/000149315221024427/ex10-1.htm) 8-K 10/04/2021 10.1

10.39 [Unsecured Convertible Note Purchase Agreement by and between the Company and Golden Mountain Partners LLC dated October 25, 2021](https://www.sec.gov/Archives/edgar/data/908259/000149315221026564/ex10-1.htm) 8-K 10/28/2021 10.1

10.40 [Form of Securities Purchase Agreement by and between the Company and certain accredited investors](https://www.sec.gov/Archives/edgar/data/908259/000149315221030193/ex10-1.htm) 8-K 12/01/2021 10.1

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| 10.41 | [Form of Securities Purchase Agreement by and between the Company and certain accredited investors dated March 29, 2022](https://www.sec.gov/Archives/edgar/data/908259/000149315221030193/ex10-1.htm) | 8-K | 04/04/2022 | 10.1 |  |
| 10.42 | [Form of Joint Venture Agreement between the Company and Dragon Overseas Capital Limited dated March 31, 2022](https://www.sec.gov/Archives/edgar/data/908259/000149315222009225/ex10-1.htm) |  | 04/06/2022 | 10.1 |  |
| 10.43 | [License Agreement between Oncotelic Therapeutics, Inc. and GMP Biotechnology Limited dated March 31, 2022](https://www.sec.gov/Archives/edgar/data/908259/000149315222009225/ex10-2.htm) |  | 04/06/2022 | 10.2 |  |
| 10.44 | [License Agreement between Oncotelic Therapeutics, Inc. and Sapu Holdings, LLC dated March 31, 2022](https://www.sec.gov/Archives/edgar/data/908259/000149315222009225/ex10-3.htm) |  | 04/06/2022 | 10.3 |  |
| 10.45 | [Independent Consulting Agreement between Oncotelic Therapeutics, Inc. and Seymour Fein, MD dated May 1, 2022](https://www.sec.gov/Archives/edgar/data/908259/000149315222012308/ex10-2.htm) | 8-K | 5/6/2022 | 10.2 |  |
| 10.46 | [Securities Purchase Agreement between Oncotelic Therapeutics Inc. and certain accredited investors dated May 27, 2022](https://www.sec.gov/Archives/edgar/data/908259/000149315222015862/ex10-1.htm) | 8-K | 6/3/2022 | 10.1 |  |
| 10.47 | [Securities Purchase Agreement between Oncotelic Therapeutics Inc. and certain accredited investors dated June 22, 2022](https://www.sec.gov/Archives/edgar/data/908259/000149315222017864/ex10-1.htm) | 8-K | 6/27/2022 | 10.1 |  |
| 10.48 | [Form of Subscription Agreement](https://www.sec.gov/Archives/edgar/data/908259/000149315223024401/ex10-1.htm) | 8-K | 07/13/2023 | 10.1 |  |
| 10.49 | [Registration Rights Agreement](https://www.sec.gov/Archives/edgar/data/908259/000149315223024401/ex10-5.htm) | 8-K | 07/13/2023 | 10.5 |  |
| 10.50 | [Form of Subscription Agreement](https://www.sec.gov/Archives/edgar/data/908259/000149315223024401/ex10-1.htm) | 8-K | 02/02/2024 | 10.1 |  |
| 10.51 | [Securities Purchase Agreement – Mast Hill](https://www.sec.gov/Archives/edgar/data/908259/000164117225022361/ex10-1.htm) | 8-K | 08/06/2025 | 10.1 |  |
| 10.52 | [Registration Rights Agreement – Mast Hill](https://www.sec.gov/Archives/edgar/data/908259/000164117225022361/ex10-3.htm) | 8-K | 08/06/2025 | 10.3 |  |
| 10.53 | [Equity Purchase Agreement – Mast Hill](https://www.sec.gov/Archives/edgar/data/908259/000164117225022361/ex10-4.htm) | 8-K | 08/06/2025 | 10.4 |  |
| 10.54 | [Registration Rights Agreement – EPA – Mast Hill](https://www.sec.gov/Archives/edgar/data/908259/000164117225022361/ex10-5.htm) | 8-K | 08/06/2025 | 10.5 |  |
| 10.55 | [Independent Contractor Agreement – Jefferson](https://www.sec.gov/Archives/edgar/data/908259/000164117225023189/ex10-1.htm) | 8-K | 08/12/2025 | 10.1 |  |
| 10.56 | [Independent Contractor Agreement – Valor](https://www.sec.gov/Archives/edgar/data/908259/000164117225023189/ex10-2.htm) | 8-K | 08/12/2025 | 10.2 |  |
| 23.1 | [Consent of the Independent Registered Accounting Firm](ex23-1.htm) |  |  |  | X |
| 23.2 | Consent of Counsel to the Offering (included in Exhibit 5.1) |  |  |  | \*\* |
| 107 | [Filing Fees Exhibit](ex107.htm) |  |  |  | X |
| 101.INS | Inline XBRL Instance Document |  |  |  | X |
| 101.SCH | Inline XBRL Taxonomy Extension Schema |  |  |  | X |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase |  |  |  | X |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase |  |  |  | X |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase |  |  |  | X |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase |  |  |  | X |

---

---

| | |
|:---|:---|
| \* | Confidential treatment has been granted for portions of this Exhibit. Redacted portions filed separately with the Securities and Exchange Commission. |
| \*\* | To be filed by amendment. |
| + | Management contract or compensatory plan or arrangement. |

---

**Undertakings**

---

| | | | |
|:---|:---|:---|:---|
| A. | The undersigned registrant hereby undertakes: | The undersigned registrant hereby undertakes: | The undersigned registrant hereby undertakes: |
|  | (1) | To file, during any period in which offers, or sales are being made, a post-effective amendment to this registration statement: | To file, during any period in which offers, or sales are being made, a post-effective amendment to this registration statement: |
|  |  | i. | To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933. |
|  |  | ii. | To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement. |
|  |  | iii. | To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement. |
|  | (2) | That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. | That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. |
|  | (3) | To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering. | To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering. |
|  | (4) | That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use. | That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Insofar
 as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons
 of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the
 SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event
 that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid
 by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted
 by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in
 the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the
 question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the
 final adjudication of such issue

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. That,
 for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution
 of the securities:

The undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Any
 preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant
 to Rule 424 (Section 230.424 of this chapter);

ii. Any
 free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred
 to by the undersigned registrant;

iii. The
 portion of any other free writing prospectus relating to the offering containing material information about the undersigned
 registrant or its securities provided by or on behalf of the undersigned registrant; and

iv. Any
 other communication that is an offer in the offering made by the undersigned registrant to the purchaser.

SIGNATURES

Pursuant to the requirement of the Securities Act of 1933, as amended, the registrant has duly caused this registration statement on Form S-1 to be signed on its behalf by the undersigned, thereunto duly authorized in the City of Agoura Hills, California, on November 21, 2025

---

| | |
|:---|:---|
| **Oncotelic Therapeutics, Inc.** | **Oncotelic Therapeutics, Inc.** |
|  | */s/ VUONG TRIEU* |
| By: | VUONG TRIEU, PH. D. |
|  | Chief Executive Officer |

---

In accordance with the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| */s/ VUONG TRIEU* | President, Chief Executive Officer and Chairman of the | November 21, 2025 |
| Vuong Trieu, Ph. D. | Board and Director (Principal executive officer) |  |
| */s/ AMIT SHAH* | Chief Financial Officer (Principal financial | November 21, 2025 |
| Amit Shah | and accounting officer) |  |
| */s/ STEVEN KING* | Director | November 21, 2025 |
| Steven King |  |  |
| */s/ ANTHONY MAIDA* | Director | November 21, 2025 |
| Anthony Maida, M.D., Ph. D. |  |  |

---

## Exhibit 23.1

**Exhibit 23.1**

**Consent of Independent Registered Public Accounting Firm**

We hereby consent to the inclusion in this Registration Statement on Form S-1 of our report dated April 15, 2025, with respect to the consolidated financial statements of Oncotelic Therapeutics, Inc. and Subsidiaries appearing in the Company's Annual Report on Form 10-K for the years ended December 31, 2024 and 2023. Our report relating to the consolidated financial statements contains an explanatory paragraph regarding the Company's ability to continue as a going concern.

We also consent to the reference to our Firm under the caption "Experts" in such Registration Statement.

Rose, Snyder & Jacobs LLP

Encino, California

November 21, 2025

## Ex-Filing

?xml version='1.0' encoding='ASCII'?

**Exhibit 107**

**CALCULATION OF FILING FEE TABLES**

Form S-1

**(Form Type)**

Oncotelic Therapeutics, Inc.

**(Exact Name of Registrant as Specified in its Charter)**

Table 1: Newly Registered Securities

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Security <br>Type | Security Class Title | Fee <br>Calculation <br>or Carry <br>Forward <br>Rule | Amount <br>Registered | Proposed <br>Maximum <br>Offering <br>Price Per <br>Share | Proposed Maximum Aggregate Offering Price | Fee Rate | Amount of Registration Fee |
| Newly Registered Securities | Newly Registered Securities | Newly Registered Securities | Newly Registered Securities | Newly Registered Securities | Newly Registered Securities | Newly Registered Securities | Newly Registered Securities | Newly Registered Securities |
| Fees to be Paid | Equity | Common Stock | Rule 457(c) | 309717647<sup>(1)</sup> | $0.085<sup>(2)</sup> | $26326000 | 0.0001381 | $3635.62 |
| Fees Previously Paid |  |  |  |  |  |  |  |  |
| Carry Forward Securities | Carry Forward Securities | Carry Forward Securities | Carry Forward Securities | Carry Forward Securities | Carry Forward Securities | Carry Forward Securities | Carry Forward Securities | Carry Forward Securities |
| Carry Forward Securities |  |  |  |  |  |  |  |  |
|  | Total Offering Amounts | Total Offering Amounts | Total Offering Amounts | Total Offering Amounts |  | $26326000 |  | $3635.62 |
|  | Total Fees Previously Paid | Total Fees Previously Paid | Total Fees Previously Paid | Total Fees Previously Paid |  |  |  |  |
|  | Total Fees Offsets | Total Fees Offsets | Total Fees Offsets | Total Fees Offsets |  |  |  |  |
|  | Net Fee Due | Net Fee Due | Net Fee Due | Net Fee Due |  |  |  | $3635.62 |

---

(1) Includes
 an indeterminable number of additional shares of common stock, pursuant to Rule 416 under
 the Securities Act, that may be issued to prevent dilution from stock splits, stock dividends
 or similar transaction that could affect the shares to be offered by Selling Stockholder.

(2) Calculated
 pursuant to Rule 457(c) under the Securities Act of 1933, as amended, based on the average
 of the high and low sale prices for the Company's common stock as reported by the OTC
 Bulletin Board on November 17, 2025

Table 2: Fee Offset Claims and Sources

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Registrant <br>or Filer <br>Name | Form <br>or <br>Filing <br>Type | File <br>Number | Initial <br>Filing <br>Date | Filing <br>Date | Fee <br>Offset <br>Claimed | Security <br>Type <br>Associated <br>with Fee <br>Offset <br>Claimed | Security <br>Title <br>Associated <br>with Fee <br>Offset <br>Claimed | Unsold <br>Securities <br>Associated <br>with Fee <br>Offset <br>Claimed | Unsold <br>Aggregate <br>Offering <br>Amount <br>Associated <br>with Fee <br>Offset <br>Claimed | Fee <br>Paid <br>with <br>Fee <br>Offset <br>Source |
| Rules 457(b) and 0-11(a)(2) | Rules 457(b) and 0-11(a)(2) | Rules 457(b) and 0-11(a)(2) | Rules 457(b) and 0-11(a)(2) | Rules 457(b) and 0-11(a)(2) | Rules 457(b) and 0-11(a)(2) | Rules 457(b) and 0-11(a)(2) | Rules 457(b) and 0-11(a)(2) | Rules 457(b) and 0-11(a)(2) | Rules 457(b) and 0-11(a)(2) | Rules 457(b) and 0-11(a)(2) | Rules 457(b) and 0-11(a)(2) |
| Fee Offset Claims |  |  |  |  |  |  |  |  |  |  |  |
| Fee Offset Sources |  |  |  |  |  |  |  |  |  |  |  |
| Rule 457(p) | Rule 457(p) | Rule 457(p) | Rule 457(p) | Rule 457(p) | Rule 457(p) | Rule 457(p) | Rule 457(p) | Rule 457(p) | Rule 457(p) | Rule 457(p) | Rule 457(p) |
| Fee Offset Claims |  |  |  |  |  |  |  |  |  |  |  |
| Fee Offset Source |  |  |  |  |  |  |  |  |  |  |  |

---

(1) N/A