# EDGAR Filing Document

**Accession Number:** 0001726711
**File Stem:** 0001213900-25-076710
**Filing Date:** 2025-8
**Character Count:** 186256
**Document Hash:** 34d0a068a77222cf6a1059f4a329621b
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-25-076710.hdr.sgml**: 20250814

**ACCESSION NUMBER**: 0001213900-25-076710

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 75

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250814

**DATE AS OF CHANGE**: 20250814

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Aditxt, Inc.
- **CENTRAL INDEX KEY:** 0001726711
- **STANDARD INDUSTRIAL CLASSIFICATION:** PHARMACEUTICAL PREPARATIONS [2834]
- **ORGANIZATION NAME:** 03 Life Sciences
- **EIN:** 823204328
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-39336
- **FILM NUMBER:** 251219812

**BUSINESS ADDRESS:**
- **STREET 1:** 737 N. FIFTH STREET, SUITE 200
- **CITY:** RICHMOND
- **STATE:** VA
- **ZIP:** 23219
- **BUSINESS PHONE:** 909-488-0844

**MAIL ADDRESS:**
- **STREET 1:** 737 N. FIFTH STREET, SUITE 200
- **CITY:** RICHMOND
- **STATE:** VA
- **ZIP:** 23219

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Aditx Therapeutics, Inc.
- **DATE OF NAME CHANGE:** 20201113

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ADiTx Therapeutics, Inc.
- **DATE OF NAME CHANGE:** 20171229

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

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q**

**(Mark One)**

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the quarterly period ended **June 30, 2025**

**or**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from ________________ to ________________**

**Commission File Number: 001-39336**

**Aditxt, Inc.**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **82-3204328** |
| (State or other jurisdiction of<br> incorporation or organization) | (I.R.S. Employer<br> Identification No.) |

---

---

| | |
|:---|:---|
| **2569 Wyandotte Street, Suite 101**<br> **Mountain View, CA** | **94043** |
| (Address of principal executive offices) | (Zip Code) |

---

**(650) 870-1200**

(Registrant's telephone number, including area code)

**Not applicable**

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, par value $0.001 per share | ADTX | The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

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

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> 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 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 13, 2025, the registrant had 4,976,556 and 4,976,555 shares of common stock, $0.001 par value per share, issued and outstanding, respectively.

**Table of Contents**

---

| | | |
|:---|:---|:---|
| **INDEX** | **INDEX** | **Page No.** |
| [Cautionary Note Regarding Forward-Looking Statements and Industry Data](#a_001) | [Cautionary Note Regarding Forward-Looking Statements and Industry Data](#a_001) | ii |
| [**PART I FINANCIAL INFORMATION**](#a_002) | [**PART I FINANCIAL INFORMATION**](#a_002) |  |
| Item 1. | [Condensed Consolidated Financial Statements (Unaudited)](#a_003) | 1 |
|  | [Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024](#a_004) | 1 |
|  | [Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2025 and 2024](#a_005) | 2 |
|  | [Condensed Consolidated Statements of Stockholders' Equity for the three and six months ended June 30, 2025 and 2024](#a_006) | 3 |
|  | [Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024](#a_008) | 5 |
|  | [Notes to Condensed Consolidated Financial Statements](#a_009) | 6 |
| Item 2. | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#a_010) | 30 |
| Item 3. | [Quantitative and Qualitative Disclosures About Market Risk](#a_011) | 39 |
| Item 4. | [Controls and Procedures](#a_012) | 39 |
| [**PART II OTHER INFORMATION**](#a_013) | [**PART II OTHER INFORMATION**](#a_013) |  |
| Item 1. | [Legal Proceedings](#a_014) | 40 |
| Item 1A. | [Risk Factors](#a_015) | 40 |
| Item 2. | [Unregistered Sales of Equity Securities and Use of Proceeds](#a_016) | 42 |
| Item 3. | [Defaults Upon Senior Securities](#a_017) | 42 |
| Item 4. | [Mine Safety Disclosures](#a_018) | 42 |
| Item 5. | [Other Information](#a_019) | 42 |
| Item 6. | [Exhibits](#a_020) | 42 |
| [Signatures](#a_021) | [Signatures](#a_021) | 43 |

---

i

**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS AND INDUSTRY DATA**

This Quarterly Report on Form 10-Q contains forward-looking statements which are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements may be identified by such forward-looking terminology as "may," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue" or the negative of these terms or other comparable terminology. Our forward-looking statements are based on a series of expectations, assumptions, estimates and projections about our company, are not guarantees of future results or performance and involve substantial risks and uncertainty. We may not actually achieve the plans, intentions or expectations disclosed in these forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in these forward-looking statements. Our business and our forward-looking statements involve substantial known and unknown risks and uncertainties, including the risks and uncertainties inherent in our statements regarding:

● we have generated no significant revenue from commercial sales to date and our future profitability is uncertain;

● if we fail to obtain the capital necessary to fund our operations, we will be unable to continue or complete our product development and you will likely lose your entire investment;

● our financial situation creates doubt whether we will continue as a going concern;

● we may need to raise additional funding, which may not be available on acceptable terms, or at all;

● even if we can raise additional funding, we may be required to do so on terms that are dilutive to you.;

● the regulatory approval process is expensive, time-consuming and uncertain and may prevent us from obtaining approvals for the commercialization of our future product candidates, if any;

● we may encounter substantial delays in completing our clinical studies which in turn will require additional costs, or we may fail to demonstrate adequate safety and efficacy to the satisfaction of applicable regulatory authorities;

● if our future pre-clinical development and future clinical Phase I/II studies are unsuccessful, we may be unable to obtain regulatory approval of, or commercialize, our product candidates on a timely basis or at all;

● even if we receive regulatory approval for any of our product candidates, we may not be able to successfully commercialize the product and the revenue that we generate from their sales, if any, may be limited;

● adverse events involving our products may lead the FDA or applicable foreign regulatory agency to delay or deny clearance for our products or result in product recalls that could harm our reputation, business and financial results;

● certain technologies are subject to licenses from LLU and Stanford (as defined below), each of which are revocable in certain circumstances, including in the event we do not achieve certain payments and milestone deadlines. Without these licenses, we may not be able to continue to develop our product candidates;

ii

● if we were to lose our CLIA certification or state laboratory licenses, whether as a result of a revocation, suspension or limitation, we would no longer be able to offer our assays (including our AditxtScore™ platform), which would limit our revenues and harm our business. If we were to lose, or fail to obtain, a license in any other state where we are required to hold a license, we would not be able to test specimens from those states;

● our results of operations will be affected by the level of royalty and milestone payments that we are required to pay to third parties;

● we face substantial competition, which may result in others discovering, developing or commercializing products before or more successfully than we do;

● our technologies and products under development, and our business, may fail if we are not able to successfully commercialize them and ultimately generate significant revenues as a result;

● customers may not adopt our products quickly, or at all;

● the failure to obtain or maintain patents, licensing agreements and other intellectual property could materially impact our ability to compete effectively;

● some of our intellectual property may be subject to "march-in" rights by the U.S. federal government;

● we do not expect to pay dividends in the foreseeable future;

● we have issued a significant number of shares of convertible preferred stock and warrants and may continue to do so in the future. The conversion and/or exercise of these securities and the sale of the shares of common stock issuable thereunder may dilute your percentage ownership interest and may also result in downward pressure on the price of our common stock;

● we have issued a significant number of restricted stock awards, restricted stock units, options and warrants and may continue to do so in the future. The vesting and, if applicable, exercise of these securities and the sale of the shares of common stock issuable thereunder may dilute your percentage ownership interest and may also result in downward pressure on the price of our common stock;

● while we have entered into a Merger Agreement with Evofem Biosciences, Inc., we cannot assure you that such transactions will be consummated or, that if such transaction is consummated, that it will be accretive to stockholder value;

● we may engage in future acquisitions or strategic transactions, including the transactions Evofem Biosciences, Inc., which may require us to seek additional financing or financial commitments, increase our expenses and/or present significant distractions to our management;

iii

● we have entered into a Common Stock Purchase Agreement with an equity line investor pursuant to which we may issue and sell up to $150 million of our common stock, which could result in significant dilution;

● we have entered into an At The Market Offering Agreement with H.C. Wainwright & Co., LLC pursuant to which we may issue and sell up to $35 million of our common stock, which could result in significant dilution

● On April 8, 2025, we received a letter from The Nasdaq Stock Market, LLC stating that we had regained compliance with the minimum bid price requirement for continued listing on The Nasdaq Capital Market, as set forth in Nasdaq Listing Rule 5550(a)(2). Consequently, the hearing before the Hearings Panel scheduled to take place on April 22, 2025 has been cancelled, however, no assurance can be provided that we will be successful in continuing to remain compliant with the requirements for continued listing on The Nasdaq Capital Market; and

● exclusive forum provisions in our amended and restated certificate of incorporation and amended and restated bylaws.

All of our forward-looking statements are as of the date of this Quarterly Report on Form 10-Q only. In each case, actual results may differ materially from such forward-looking information. We can give no assurance that such expectations or forward-looking statements will prove to be correct. An occurrence of, or any material adverse change in, one or more of the risk factors or risks and uncertainties referred to in this Quarterly Report on Form 10-Q or included in our other public disclosures or our other periodic reports or other documents or filings filed with or furnished to the U.S. Securities and Exchange Commission (the "SEC") could materially and adversely affect our business, prospects, financial condition, and results of operations. Except as required by law, we do not undertake or plan to update or revise any such forward-looking statements to reflect actual results, changes in plans, assumptions, estimates or projections or other circumstances affecting such forward-looking statements occurring after the date of this Quarterly Report on Form 10-Q, even if such results, changes, or circumstances make it clear that any forward-looking information will not be realized. Any public statements or disclosures by us following this Quarterly Report on Form 10-Q that modify or impact any of the forward-looking statements contained in this Quarterly Report on Form 10-Q will be deemed to modify or supersede such statements in this Quarterly Report on Form 10-Q.

This Quarterly Report on Form 10-Q may include market data and certain industry data and forecasts, which we may obtain from internal company surveys, market research, consultant surveys, publicly available information, reports of governmental agencies and industry publications, articles, and surveys. Industry surveys, publications, consultant surveys, and forecasts generally state that the information contained therein has been obtained from sources believed to be reliable, but the accuracy and completeness of such information is not guaranteed. While we believe that such studies and publications are reliable, we have not independently verified market and industry data from third-party sources.

**References to Aditxt, Inc.**

Throughout this Quarterly Report on Form 10-Q, the "Company," "Aditxt," "we," "us," and "our" refers to Aditxt, Inc. and "our board of directors" refers to the board of directors of Aditxt, Inc.

iv

**PART I - FINANCIAL INFORMATION**

**Item 1. Financial Statements**

**ADITXT, INC.**

**CONSOLIDATED BALANCE SHEETS**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2025** | **December 31,**<br>**2024** |
| **ASSETS** |  |  |
| **CURRENT ASSETS:** |  |  |
| Cash | $323679 | $833031 |
| Accounts receivable, net | 39743 | 43435 |
| Inventory | 7617 | 11245 |
| Prepaid expenses | 62616 | 3379 |
| Subscription receivable | - | 1108751 |
| **TOTAL CURRENT ASSETS** | 433655 | 1999841 |
| Fixed assets, net | 1412276 | 1547774 |
| Intangible assets, net | 4444 | 6111 |
| Deposits | 215946 | 87672 |
| Right of use asset | 886014 | 1225781 |
| Notes receivable, related party, net of discount | 2196826 | - |
| Investment in Evofem | 27542071 | 27277211 |
| **TOTAL ASSETS** | $32691232 | $32144390 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| **CURRENT LIABILITIES:** |  |  |
| Accounts payable and accrued expenses | $10660226 | $13212239 |
| Mandatorily Redeemable A-1 Preferred Stock (450 and 0 shares) | 517445 | - |
| Mandatorily Redeemable C-1 Preferred Stock (2,263 and 1,178 shares) | 3956819 | 1354774 |
| Stock payable | - | 2250000 |
| Notes payable, related party | - | 115000 |
| Notes payable, net of discount | 4527649 | 5537860 |
| Financing on fixed assets | 147823 | 147823 |
| Deferred rent | 79044 | 106075 |
| Lease liability, current | 693613 | 683352 |
| **TOTAL CURRENT LIABILITIES** | 20582619 | 23407123 |
| Lease liability, long term | 113357 | 436354 |
| Derivative liability | 392 | 14517 |
| **TOTAL LIABILITIES** | 20696368 | 23857994 |
| **COMMITMENTS AND CONTINGENCIES** |  |  |
| **MEZZANINE EQUITY** |  |  |
| Series C-1 Convertible Preferred stock, $0.001 par value, 10,853 shares authorized, zero and 8,373 shares issued and outstanding, respectively | - | 8373000 |
| **TOTAL MEZZANINE EQUITY** | - | 8373000 |
| **STOCKHOLDERS' EQUITY** |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock, $0.001 par value, 3,000,000 shares authorized, zero shares issued and outstanding, respectively | - | - |
| &nbsp;&nbsp;&nbsp;Series A-1 Convertible Preferred stock, $0.001 par value, 22,280 shares authorized, 21,353 and 22,071 shares issued and outstanding, respectively | 21 | 22 |
| &nbsp;&nbsp;&nbsp;Series B Preferred stock, $0.001 par value, 1 share authorized, zero and zero shares issued and outstanding, respectively | - | - |
| &nbsp;&nbsp;&nbsp;Series B-1 Convertible Preferred stock, $0.001 par value, 6,000 shares authorized, 2,689 and 2,689 shares issued and outstanding, respectively | 3 | 3 |
| &nbsp;&nbsp;&nbsp;Series B-2 Convertible Preferred stock, $0.001 par value, 2,625 shares authorized, 2,625 and 2,625 shares issued and outstanding, respectively | 3 | 3 |
| &nbsp;&nbsp;&nbsp;Series C Preferred stock, $0.001 par value, 1 share authorized, zero and zero shares issued and outstanding, respectively | - | - |
| &nbsp;&nbsp;&nbsp;Series D-1 Preferred stock, $0.001 par value, 4,186 shares authorized, zero and zero shares issued and outstanding, respectively | - | - |
| &nbsp;&nbsp;&nbsp;Common stock, $0.001 par value, 1,000,000,000 and 100,000,000 shares authorized, 3,176,929 and 129,680 shares issued and 3,176,929 and 129,679 shares outstanding, respectively | 3177 | 130 |
| &nbsp;&nbsp;&nbsp;Treasury stock, 1 and 1 shares, respectively | (201605) | (201605) |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 194219137 | 168792592 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (181061686) | (168094569) |
| **TOTAL ADITXT, INC. STOCKHOLDERS' EQUITY** | 12959050 | 496576 |
| **NON-CONTROLLING INTEREST** | (964186) | (583180) |
| **TOTAL STOCKHOLDERS' EQUITY** | 11994864 | (86604) |
| **TOTAL LIABILITIES, MEZZANINE EQUITY, AND STOCKHOLDERS' EQUITY** | $32691232 | $32144390 |

---

See accompanying notes to the consolidated financial statements.

**ADITXT, INC.**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months<br> Ended**<br>**June 30,<br> 2025** | **Three Months<br> Ended**<br>**June 30,<br> 2024** | **Six Months<br> Ended**<br>**June 30,<br> 2025** | **Six Months<br> Ended**<br>**June 30,<br> 2024** |
| **REVENUE** | | | | |
| Sales | $1004 | $44276 | $2022 | $123956 |
| Cost of goods sold | 1005 | 23134 | 1739 | 88933 |
| Gross profit (loss) | (1) | 21142 | 283 | 35023 |
| **OPERATING EXPENSES** |  |  |  |  |
| General and administrative expenses $0, $4,097, $0, and $28,670 in stock-based compensation, respectively | 5039036 | 4419545 | 9387310 | 7783293 |
| Research and development $0, $1,000,000, $10,000 and $6,712,663 in stock-based compensation, respectively | 764327 | 1553360 | 1973532 | 9698626 |
| Sales and marketing $473,311, $0, $473,311, and $0 in stock-based compensation, respectively | 349031 | 24218 | 399951 | 64731 |
| Total operating expenses | 6152394 | 5997123 | 11760793 | 17546650 |
| **NET LOSS FROM OPERATIONS** | (6152395) | (5975981) | (11760510) | (17511627) |
| **OTHER INCOME (EXPENSE)** |  |  |  |  |
| Interest expense | (47352) | (1091568) | (204851) | (3580613) |
| Interest income | 78566 | 378 | 78854 | 755 |
| Amortization of debt discount | (1212246) | (556708) | (1412530) | (1192418) |
| Gain (loss) on note exchange agreement | - | - | - | (208670) |
| Change in fair value of derivative liability | 980 | - | 14125 | - |
| Change in fair value of Evofem warrants | (63211) | - | (63211) | - |
| &nbsp;&nbsp;&nbsp;Total other expense | (1243263) | (1647898) | (1587613) | (4980946) |
| Net loss before income taxes | (7395658) | (7623879) | (13348123) | (22492573) |
| Income tax provision | - | - | - | - |
| **NET LOSS** | $(7395658) | $(7623879) | $(13348123) | $(22492573) |
| **NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST** | (138850) | (74260) | (381006) | (213227) |
| **NET LOSS ATTRIBUTABLE TO ADITXT, INC. & SUBSIDIARIES** | $(7256808) | $(7549619) | $(12967117) | $(22279346) |
| Net loss per share, basic and diluted | $(3.45) | $(1047.17) | $(9.22) | $(3262.64) |
| Weighted average number of shares outstanding during the period, basic and diluted | 2101701 | 7210 | 1406545 | 6829 |

---

See accompanying notes to the consolidated financial statements.

**ADITXT, INC.**

**CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)**

**SIX MONTHS ENDED JUNE 30, 2025 AND 2024**

**(Unaudited)**

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Preferred<br> A-1<br> Shares** | **Preferred<br> A-1<br> Shares Par** | **Preferred<br> B-1<br> Shares** | **Preferred<br> B-1<br> Shares<br> Par** | **Preferred<br> B-2<br> Shares** | **Preferred<br> B-2<br> Shares<br> Par** | **Common<br> Shares<br> Outstanding** | **Common<br> Shares<br> Par** | **Treasury<br> Stock** | **Additional<br> Paid-in<br> Capital** | **Accumulated<br> Deficit** | **Non-<br> Controlling<br> Interest** | **Total <br> Stockholders'<br> Equity<br> (Deficit)** | **Preferred<br> C-1<br> Shares** | **Redeemable<br> Preferred<br> C-1** | **Total<br> Mezzanine<br> Equity** |
| Balance December 31, 2024 | 22071 | $22 | 2689 | $3 | 2625 | $&nbsp;&nbsp;&nbsp;&nbsp;3 | 129679 | $130 | $(201605) | $168792592 | $(168094569) | $(583180) | $(86604) | 8373 | 8373000 | 8373000 |
| Issuance of shares for registered direct offering, net of issuance costs |  |  |  |  |  |  | 177883 | 178 |  | 4582084 |  |  | 4582262 |  |  |  |
| Issuance of shares under ELOC, net of issuance costs |  |  |  |  |  |  | 900116 | 900 |  | 18466015 |  |  | 18466915 |  |  |  |
| Redemption of C-1 preferred stock |  |  |  |  |  |  |  |  |  | (917069) |  |  | (917069) | (6110) | (6110000) | (6110000) |
| Reclass of C-1 preferred stock to Mandatorily Redeemable Preferred Stock |  |  |  |  |  |  |  |  |  | (339041) |  |  | (339041) | (2263) | (2263000) | (2263000) |
| Acquisition of patent for Pearsanta preferred stock |  |  |  |  |  |  |  |  |  | 10000 |  |  | 10000 |  |  |  |
| Rounding from reverse stock split |  |  |  |  |  |  | 252 |  |  |  |  |  |  |  |  |  |
| Net loss | - | - | - | - | - | - | - | - | - | - | (5710309) | (242156) | (5952465) | - | - | - |
| Balance March 31, 2025 | 22071 | $&nbsp;&nbsp;&nbsp;&nbsp;22 | 2689 | $&nbsp;&nbsp;&nbsp;&nbsp;3 | 2625 | $3 | 1207930 | $1208 | $(201605) | $190594581 | $(173804878) | $(825336) | $15763998 | - | - | - |
| Issuance of shares for registered direct offering, net of issuance costs |  |  |  |  |  |  | 1870119 | 1870 |  | 3976788 |  |  | 3978658 |  |  |  |
| Redemption of A-1 preferred stock | (268) |  |  |  |  |  |  |  |  | (308000) |  |  | (308000) |  |  |  |
| Reclassification of A-1 preferred stock to Mandatorily Redeemable Preferred Stock | (450) | (1) |  |  |  |  |  |  |  | (517444) |  |  | (517445) |  |  |  |
| Warrants issued for services |  |  |  |  |  |  |  |  |  | 473311 |  |  | 473311 |  |  |  |
| Rounding from reverse stock split |  |  |  |  |  |  | 98880 | 99 |  | (99) |  |  |  |  |  |  |
| Net loss | - | - | - | - | - | - | - | - | - | - | (7256808) | (138850) | (7395658) | - | - | - |
| Balance June 30, 2025 | 21353 | $21 | 2689 | $3 | 2625 | $3 | 3176929 | $3177 | $(201605) | $194219137 | $(181061686) | $(964186) | $11994864 | - | - | - |

---

See accompanying notes to the consolidated financial statements.

**ADITXT, INC.**

**CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)**

**SIX MONTHS ENDED JUNE 30, 2025 AND 2024**

**(Unaudited)**

---

| | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Preferred<br> A-1<br> Shares** | **Preferred<br> A-1<br> Shares<br> Par** | **Preferred<br> B-1<br> Shares** | **Preferred<br> B-1<br> Shares<br> Par** | **Preferred<br> B-2<br> Shares** | **Preferred<br> B-2<br> Shares<br> Par** | **Preferred<br> C-1<br> Shares** | **Preferred<br> C-1<br> Shares<br> Par** | **Preferred<br> D-1<br> Shares** | **Preferred<br> D-1<br> Shares<br> Par** | **Common<br> Shares<br> Outstanding** | **Common<br> Shares<br> Par** | **Treasury<br> Stock** | **Additional<br> Paid-in<br> Capital** | **Accumulated<br> Deficit** | **Non-<br> Controlling Interest** | **Total<br> Stockholders'<br> Equity** |
| Balance December 31, 2023 | 22280 | $&nbsp;&nbsp;&nbsp;&nbsp;22 |  | $&nbsp;&nbsp;&nbsp;&nbsp;- |  | $&nbsp;&nbsp;&nbsp;&nbsp; - | &nbsp;&nbsp;&nbsp;&nbsp;- | $&nbsp;&nbsp;&nbsp;&nbsp;- |  | $&nbsp;&nbsp;&nbsp;&nbsp; - | 165 | $&nbsp;&nbsp;&nbsp;&nbsp; 11 | $(201605) | $143999018 | $(127741072) | $(9608) | $16046769 |
| Stock option compensation |  |  |  |  |  |  |  |  |  |  |  |  |  | 24573 |  |  | 24573 |
| MDNA asset purchase |  |  |  |  |  |  |  |  |  |  | 5 | 1 |  | 1008668 |  |  | 1008669 |
| Brain asset purchase |  |  | 6000 | 6 | 6000 | 6 |  |  |  |  |  |  |  | 5970437 |  |  | 5970443 |
| Issuance of shares for settlement |  |  |  |  |  |  |  |  |  |  | 30 | 1 |  | 1599999 |  |  | 1600000 |
| Net loss | - | - | - | - | - | - | - | - | - | - | - | - | - | - | (14729727) | (138967) | (14868694) |
| Balance March 31, 2024 | 22280 | $22 | 6000 | $6 | 6000 | $6 | - | $- | - | $- | 200 | $13 | $(201605) | $152602695 | $(142470799) | $(148575) | $9781760 |
| Stock option compensation |  |  |  |  |  |  |  |  |  |  |  |  |  | 4095 |  |  | 4095 |
| Restricted stock unit compensation |  |  |  |  |  |  |  |  |  |  | 1 |  |  | 2 |  |  | 2 |
| Issuance of shares for offering, net of issuance costs |  |  |  |  |  |  | 4186 | 4 | 4186 | 4 |  |  |  | 3518559 |  |  | 3518567 |
| Issuance of shares for debt issuance costs |  |  |  |  |  |  |  |  |  |  | 33 | 1 |  | 662717 |  |  | 662718 |
| Modification of warrants |  |  |  |  |  |  |  |  |  |  |  |  |  | 4137 | (4137) |  |  |
| Net loss | - |  | - | - | - | - | - | - | - | - | - | - | - | - | (7549619) | (74260) | (7623879) |
| Balance June 30, 2024 (unaudited) | 22280 | $22 | 6000 | $6 | 6000 | $6 | 2625 | $4 | 2625 | $4 | 234 | $14 | $(201605) | $156791985 | $(150024555) | $(222835) | $6343263 |

---

See accompanying notes to the consolidated financial statements.

**ADITXT, INC.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Six Months<br> Ended**<br>**June 30,<br> 2025** | **Six Months<br> Ended**<br>**June 30,<br> 2024** |
| **CASH FLOWS FROM OPERATING ACTIVITIES:** | | |
| Net loss | $(13348123) | $(22492573) |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile net loss to net cash used in operating activities** |  |  |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | 473311 | 28670 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation from asset purchase | 10000 | 6712663 |
| &nbsp;&nbsp;&nbsp;Depreciation expense | 135498 | 300129 |
| &nbsp;&nbsp;&nbsp;Amortization of intangible assets | 1667 | 1666 |
| &nbsp;&nbsp;&nbsp;Amortization of debt discount - note payable | 1412530 | 1192418 |
| &nbsp;&nbsp;&nbsp;Amortization of debt discount - note receivable, related party | (99897) | - |
| &nbsp;&nbsp;&nbsp;Loss on note exchange agreement | - | 208670 |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative liability | (14125) | - |
| &nbsp;&nbsp;&nbsp;Change in fair value of Evofem warrants | 63211 | - |
| &nbsp;&nbsp;&nbsp;**Changes in operating assets and liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 3692 | 1732 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | (59237) | (225898) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits | (128274) | (572) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | 3628 | 180001 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | (2552013) | 5122287 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Settlement liability | - | 720000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (14098132) | (8250807) |
| **CASH FLOWS FROM INVESTING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment in notes receivable and warrants, related party | (2425000) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment in Evofem preferred stock | - | (1000000) |
| &nbsp;&nbsp;&nbsp;Net cash provided by investing activities | (2425000) | (1000000) |
| **CASH FLOWS FROM FINANCING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from notes payable, related party | 493000 | 467000 |
| &nbsp;&nbsp;&nbsp;Proceeds from notes and convertible notes payable, net of offering costs | 1504019 | 2393811 |
| &nbsp;&nbsp;&nbsp;Repayments of note payable, related party | (608000) | (375000) |
| &nbsp;&nbsp;&nbsp;Repayments of note payable | (3926760) | (2156052) |
| &nbsp;&nbsp;&nbsp;New principal from extension of notes, net of debt discount | - | 451974 |
| &nbsp;&nbsp;&nbsp;Common stock and warrants issued for cash, net of issuance costs | 24777835 | 3018567 |
| &nbsp;&nbsp;&nbsp;Cash from subscription receivable | 1108751 | 5444628 |
| &nbsp;&nbsp;&nbsp;Redemptions of A-1 preferred stock | (308000) | - |
| &nbsp;&nbsp;&nbsp;Redemptions of C-1 preferred stock | (7027065) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 16013780 | 9244928 |
| **NET DECREASE IN CASH** | (509352) | (5879) |
| CASH AT BEGINNING OF PERIOD | 833031 | 97102 |
| CASH AT END OF PERIOD | $323679 | $91223 |
| **Supplemental cash flow information:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for income taxes | $- | $- |
| &nbsp;&nbsp;&nbsp;Cash paid for interest | $1264504 | $622762 |
| **NONCASH INVESTING AND FINANCING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;Issuance of shares for the conversion of notes payable | $- | $500000 |
| &nbsp;&nbsp;&nbsp;Debt discount from shares issued as inducement for note payable | $- | $662718 |
| &nbsp;&nbsp;&nbsp;Warrant modification | $- | $4137 |
| &nbsp;&nbsp;&nbsp;Issuance of shares in asset purchase | $- | $266448 |
| &nbsp;&nbsp;&nbsp;Shares issued for settlement | $- | $160000 |
| &nbsp;&nbsp;&nbsp;Return of notes payable from Evofem merger agreement | $- | $11174246 |
| &nbsp;&nbsp;&nbsp;Accrued interest rolled into notes payable | $- | $583223 |
| &nbsp;&nbsp;&nbsp;ELOC payable | $630105 | $- |
| &nbsp;&nbsp;&nbsp;Series C-1 redemption payable | $2602045 | $- |
| &nbsp;&nbsp;&nbsp;ELOC commitment fee stock payable | $2250000 | $- |
| &nbsp;&nbsp;&nbsp;Loan in escrow | $2000000 | $- |
| &nbsp;&nbsp;&nbsp;Reclassification of series A-1 preferred shares to liabilities | $517444 | $- |

---

See accompanying notes to the consolidated financial statements.

**ADITXT, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS**

***Company Background***

**Overview**

Aditxt, Inc. <sup>®</sup> is an innovation platform dedicated to discovering, developing, and deploying promising innovations. Aditxt's ecosystem of research institutions, industry partners, and shareholders collaboratively drives their mission to "Make Promising Innovations Possible Together." The innovation platform is the cornerstone of Aditxt's strategy, where multiple disciplines drive disruptive growth and address significant societal challenges. Aditxt operates a unique model that democratizes innovation, ensures every stakeholder's voice is heard and valued, and empowers collective progress.

**Reverse Stock Splits**

On October 2, 2024, the Company effectuated a 1-for-40 reverse stock split (the "2024 Reverse Split"). The Company's stock began trading on a split-adjusted basis effective on the Nasdaq Stock Market on October 3, 2024. There was no change to the number of authorized shares of the Company's common stock. All share amounts referenced in this report are adjusted to reflect the 2024 Reverse Split.

On March 14, 2025, the Company effectuated a 1-for-250 reverse stock split (the "2025 Reverse Split"). The Company's stock began trading on a split-adjusted basis effective on the Nasdaq Stock Market on March 17, 2025. There was no change to the number of authorized shares of the Company's common stock. All share amounts referenced in this report are adjusted to reflect the 2025 Reverse Split.

On March 14, 2025, Pearsanta effectuated a 1-for-60 reverse stock split (the "2025 Pearsanta Reverse Split"). There was no change to the number of authorized shares of Pearsanta's common stock. All Pearsanta share amounts referenced in this report are adjusted to reflect the 2025 Pearsanta Reverse Split.

**Offerings**

On May 2, 2024, the Company entered into a Securities Purchase Agreement (the "May PIPE Purchase Agreement") with certain accredited investors, pursuant to which the Company agreed to issue and sell to such investors in a private placement (the "May 2024 Private Placement") (i) an aggregate of 4,186 shares of the Company's Series C-1 Convertible Preferred Stock (the "Series C-1 Convertible Preferred Stock"), (ii) an aggregate of 4,186 shares of the Company's Series D-1 Preferred Stock (the "Series D-1 Preferred Stock"), and (iii) warrants (the "May PIPE Warrants") to purchase up to an aggregate of 162 shares of the Company's common stock. The May 2024 Private Placement closed on May 6, 2024. The gross proceeds from the May 2024 Private Placement were approximately $4.2 million, prior to deducting the placement agent's fees and other offering expenses payable by the Company. The Company used $1.0 million of the net proceeds to fund certain obligations under its merger agreement with Evofem Biosciences, Inc. and the remainder of the net proceeds from the offering for working capital and other general corporate purposes. (Note 10)

On August 8, 2024, the Company entered into a securities purchase agreement (the "Registered Direct Purchase Agreement") with certain institutional investors, pursuant to which the Company agreed to sell to such investors 19 shares (the "Registered Direct Shares") of common stock of the Company, pre-funded warrants (the "Registered Direct Pre-Funded Warrants") to purchase up to 95 shares of common stock of the Company (the "Registered Direct Pre-Funded Warrant Shares"), having an exercise price of $400.00 per share, at a purchase price of $10,600 per share of common stock and a purchase price of $10,590 per Registered Direct Pre-Funded Warrant (the "Registered Direct Offering"). The shares of common stock and Registered Direct Pre-Funded Warrants (and shares of common stock underlying the Registered Direct Pre-Funded Warrants) were offered by the Company pursuant to its shelf registration statement on Form S-3 (File No. 333-280757), which was declared effective by the Securities and Exchange Commission on August 6, 2024.

The closing of the sales of these securities under the Registered Direct Purchase Agreement took place on August 9, 2024. The gross proceeds from the offering were approximately $1.2 million, prior to deducting placement agent's fees and other offering expenses payable by the Company. The Company used $500,000 of the net proceeds from the offering to fund certain obligations under its Amended and Restated Merger Agreement with Evofem Biosciences, Inc and the remainder for working capital and other general corporate purposes.

***Risks and Uncertainties***

The Company has a limited operating history and is in the very early stages of generating revenue from intended operations. The Company's business and operations are sensitive to general business and economic conditions in the U.S. and worldwide along with local, state, and federal governmental policy decisions. A host of factors beyond the Company's control could cause fluctuations in these conditions. Adverse conditions may include: changes in the biotechnology regulatory environment, technological advances that render our technologies obsolete, availability of resources for clinical trials, acceptance of technologies into the medical community, and competition from larger, more well-funded companies. These adverse conditions could affect the Company's financial condition and the results of its operations.

**NOTE 2 – GOING CONCERN ANALYSIS**

***Management Plans***

The Company was incorporated on September 28, 2017 and has not generated significant revenues to date. During the six months ended June 30, 2025, the Company had a net loss of $13,348,123 and negative cash flow from operating activities of $14,098,132. As of June 30, 2025, the Company's cash balance was $323,679.

As of June 30, 2025, the Company was subject to the offering limits in General Instruction I.B.6 of Form S-3 (the "Baby Shelf Limitation"). Thus, the maximum amount of securities that the Company could offer and sell under its shelf registration statement on Form S-3 as of June 30, 2025 was $0. Upon the filing of the Company's annual report on Form 10-K on March 31, 2025, the Company's aggregate market value of the voting and non-voting equity held by non-affiliates was below $6.0 million. As a result, the maximum amount that the Company can sell under its shelf registration statement on Form S-3 during any 12 month period is equal to one-third of the aggregate market value of the voting and non-voting equity held by non-affiliates of the Company.

If we are delisted from Nasdaq, but obtain a substitute listing for our common stock, it will likely be on a market with less liquidity, and therefore experience potentially more price volatility than experienced on Nasdaq. Stockholders may not be able to sell their shares of common stock on any such substitute market in the quantities, at the times, or at the prices that could potentially be available on a more liquid trading market. As a result of these factors, if our common stock is delisted from Nasdaq, the value and liquidity of our common stock, warrants and pre-funded warrants would likely be significantly adversely affected. A delisting of our common stock from Nasdaq could also adversely affect our ability to obtain financing for our operations and/or result in a loss of confidence by investors, employees and/or business partners.

The Company continues to actively pursue numerous capital raising transactions with the objective of obtaining sufficient bridge funding to meet the Company's existing capital needs as well as more substantial capital raises to meet the Company's longer-term needs.

In addition, factors such as stock price, volatility, trading volume, market conditions, demand and regulatory requirements may adversely affect the Company's ability to raise capital in an efficient manner. Because of these factors, the Company believes that this creates substantial doubt with the Company's ability to continue as a going concern.

The Company has the ability to raise capital from equity or debt through private placements or public offerings pursuant to a registration statement on Form S-1. We may also secure loans from related parties.

The financial statements included in this report do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the matters discussed herein. The Company's ability to continue as a going concern is dependent upon the ability to complete clinical studies and implement the business plan, generate sufficient revenues and to control operating expenses. In addition, the Company is consistently focused on raising capital, strategic acquisitions and alliances, and other initiatives to strengthen the Company.

**NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

***Basis of Presentation***

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and the rules and regulations of the Securities and Exchange Commission ("SEC"). In the opinion of the Company's management, the accompanying condensed consolidated financial statements reflect all adjustments, consisting of normal, recurring adjustments, considered necessary for a fair presentation of the results for the interim periods ended June 30, 2025 and 2024. Although management believes that the disclosures in these unaudited condensed consolidated financial statements are adequate to make the information presented not misleading, certain information and footnote disclosures normally included in condensed consolidated financial statements that have been prepared in accordance U.S. GAAP have been omitted pursuant to the rules and regulations of the SEC.

The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company's financial statements and notes related thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 31, 2025. The interim results for the six months ended June 30, 2025 are not necessarily indicative of the results to be expected for the year ending December 31, 2025 or for any future interim periods.

***Principles of Consolidation***

The consolidated financial statements include the accounts of Aditxt, Inc., its wholly owned subsidiaries and, one majority owned subsidiary. All significant intercompany balances and transactions have been eliminated in the consolidated financial statements.

***Use of Estimates***

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. Significant estimates underlying the financial statements include the value of preferred shares issued and related derivative liability, our investment in Evofem preferred stock and the fair value of stock options and warrants.

***Fair Value Measurements and Fair Value of Financial Instruments***

The Company adopted Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements. ASC Topic 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows:

Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.

---

| | |
|:---|:---|
| Level 2 | Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. |

---

Level 3 - Inputs are unobservable inputs which reflect the reporting entity's own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information.

Due to the short-term nature of all financial assets and liabilities, their carrying value approximates their fair value as of the balance sheet dates, with the exception of the derivative liability.

The following table provides a summary of financial instruments that are measured at fair value as of June 30, 2025.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | **Fair Value Measurement Using** | **Fair Value Measurement Using** | **Fair Value Measurement Using** | **Fair Value Measurement Using** |
|  | **Carrying**<br>**Value** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Derivative liability | $392 |  | $392 |  | $392 |
| Investment in Evofem warrants | 264860 |  | 264860 |  | 264860 |
| Total | $265252 |  | 265252 |  | $265252 |

---

The following table provides a summary of financial instruments that are measured at fair value as of December 31, 2024.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | **Fair Value Measurement Using** | **Fair Value Measurement Using** | **Fair Value Measurement Using** | **Fair Value Measurement Using** |
|  | **Carrying**<br>**Value** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Derivative liability | $14517 |  | $14517 |  | $14517 |

---

***Concentrations of Credit Risk***

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable.

The Company maintains its cash accounts at financial institutions which are insured by the Federal Deposit Insurance Corporation. At times, the Company may have deposits in excess of federally insured limits.

The Company has not experienced any losses in such accounts and believes it is not exposed to significant concentrations of credit risk on its cash balances on amounts in excess of federally insured limits due to the financial position of the depository institutions in which these deposits are held.

Substantially all the Company's accounts receivable are with companies in the healthcare industry, individuals, and the U.S. government. However, concentration of credit risk is mitigated due to the Company's number of customers. In addition, for receivables due from U.S. government agencies, the Company does not believe the receivables represent a credit risk as these are related to healthcare programs funded by the U.S. government and payment is primarily dependent upon submitting the appropriate documentation.

***Cash***

Cash includes short-term, liquid investments with maturities less than 90 days.

***Accounts Receivable and Allowance for Doubtful Accounts***

Accounts receivable are stated at the amount management expects to collect from outstanding balances. The Company generally does not require collateral to support customer receivables. The Company determines if receivables are past due based on days outstanding, and amounts are written off when determined to be uncollectible by management. As of June 30, 2025 and December 31, 2024, gross accounts receivable was $117,651 and $121,582, respectively. As of June 30, 2025 and December 31, 2024, there was an allowance for doubtful accounts of $77,908 and 78,147, respectively. Accounts receivable is made up of billed and unbilled of $117,328 and $323 as of June 30, 2025, respectively, and $120,296 and $1,286 as of December 31, 2024, respectively.

***Inventory***

Inventory consists of laboratory materials and supplies used in laboratory analysis. We capitalize inventory when purchased. Inventory is valued at the lower of cost or net realizable value on a first-in, first-out basis. We periodically perform obsolescence assessments and write off any inventory that is no longer usable.

***Fixed Assets***

Fixed assets are stated at cost less accumulated depreciation. Cost includes expenditures for furniture, office equipment, laboratory equipment, and other assets. Maintenance and repairs are charged to expense as incurred. When assets are sold, retired, or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in operations. The costs of fixed assets are depreciated using the straight-line method over the estimated useful lives or lease life of the related assets.

Useful lives assigned to fixed assets are as follows:

---

| | |
|:---|:---|
| Computers | Three years to five years |
| Lab Equipment | Seven to ten years |
| Office Furniture | Five to ten years |
| Other fixed assets | Five to ten years |
| Leasehold Improvements | Shorter of estimated useful life or remaining lease term |

---

***Intangible Assets***

Intangible assets are stated at cost less accumulated amortization. For intangible assets that have finite lives, the assets are amortized using the straight-line method over the estimated useful lives of the related assets. For intangible assets with indefinite lives, the assets are tested periodically for impairment.

***Notes Receivable***

The Company accounts for its notes receivable in accordance with the FASB Accounting Standards Codification 320, Investments – Debt and Equity Securities ("ASC 320"). The notes receivable are classified as held for maturity.

 ****

Amortization of discount or premium as well as loan origination, commitment, and other fees and costs recognized as an adjustment of the effective interest rate are to be included in interest income. The notes receivable are presented as the carrying value net of any impairment.

***Investments***

The Evofem investment is included in its own line item on the Company's consolidated balance sheets.

Under ASC 321, the Company accounts for equity investments at fair value. If fair value is not readily determinable or marketable, the Company values at cost less impairment.

Non-marketable equity investments (for which we do not have significant influence or control) are investments without readily determinable fair values that are recorded based on initial cost minus impairment, if any, plus or minus adjustments resulting from observable price changes in orderly transactions for identical or similar securities, if any. All gains and losses on investments in non-marketable equity securities, realized and unrealized, are recognized in investment and other income (expense), net.

We monitor equity method and non-marketable equity investments for events or circumstances that could indicate the investments are impaired, such as a deterioration in the investee's financial condition and business forecasts and lower valuations in recently completed or anticipated financings, and recognize a charge to investment and other income (expense), net for the difference between the estimated fair value and the carrying value. For equity method investments, we record impairment losses in earnings only when impairments are considered other-than-temporary.

The Evofem F-1 Preferred Stock is recorded at cost less impairment and the Evofem warrants are recorded at fair value. The Evofem F-1 Preferred Stock is recorded as cost due to it being a non-marketable equity investment. The Evofem warrants are valued at fair market value due to having a readily determinable fair value.

The following table sets forth a summary of the components in equity investments.

---

| | |
|:---|:---|
|  | **June 30,<br> 2025** |
| Evofem warrants | $264860 |
| Evofem F-1 Preferred Stock | 27277211 |
| As of June 30, 2025 | $27542071 |

---

The following table sets forth a summary of the changes in equity investments. This investment has been recorded at cost in accordance with ASC 321 for the shares of Evofem F-1 Preferred Stock and fair value for the Evofem warrants.

---

| | |
|:---|:---|
|  | **For the<br> six months<br> ended<br> June 30,<br> 2025** |
| As of December 31, 2024 | $27277211 |
| Evofem warrants | 328071 |
| Impairment | - |
| Change in fair value of Evofem Warrants | (63211) |
| As of June 30, 2025 | $27542071 |

---

The investment in Evofem F-1 Preferred Stock has been impaired $0 to date. During the three and six months ended June 30, 2025, the Company recorded a change in the fair value of the Evofem warrants of $63,211.

***Impairment of long-lived assets***

The Company reviews and evaluates the net carrying value of its long-lived assets at least annually, or upon the occurrence of other events or changes in circumstances that indicate that the related carrying amounts may not be recoverable. Per ASC 360-10-35-21, a long-lived asset (asset group) shall be tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. Per ASC 360-10-35-17, an impairment loss shall be recognized only if the carrying amount of the long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset.

***Accounts Payable and Accrued Expenses***

As of June 30, 2025 and December 31, 2024, accounts payable and accrued expenses was comprised of:

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | **December 31,<br> 2024** |
| Accounts payable | $9680600 | $10192373 |
| Accrued wages | 233639 | 1130181 |
| Accrued interest | 669545 | 1889527 |
| Other | 76442 | 158 |
| Total accounts payable and accrued expenses | $10660226 | $13212239 |

---

***Derivative Liability***

The Company evaluates its options, warrants, other equity instruments, and other contracts, if any, to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with ASC 815-10-05-4 and 815-40-25. The result of this accounting treatment is that the fair value of the embedded derivative is marked-to-market each balance sheet date and recorded as either an asset or a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the consolidated statements of operations as other income or expense. Upon conversion, exercise or cancellation of a derivative instrument, the instrument is marked to fair value at the date of conversion, exercise or cancellation and then the related fair value is reclassified to equity.

The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. Equity instruments that are initially classified as equity that become subject to reclassification are reclassified to liability at the fair value of the instrument on the reclassification date. Derivative instrument liabilities will be classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument is expected within 12 months of the balance sheet date.

The Company has determined that a derivative feature exists on its shares of 21,353 shares of Series A-1 Convertible Preferred Stock, 2,689 shares of Series B-1 Convertible Preferred Stock, and 2,625 shares of Series B-2 Convertible Preferred Stock. This derivative arose from a conversion feature of these classes of preferred stock that allows for 50% additional shares to be issued under certain circumstances, in this case a default on one of the Company's leases. (See Note 10)

The Company valued the derivative based on the conversion formula outlined in the certificate of designation for the preferred stock. Per the formula, the stated value was $1,000, with an additional premium of 50%, and alternative conversion amount per share of $500, and a floor price of $8,880 for the Series A-1 Convertible Preferred Stock, $8,120 for the Series B-1 Convertible Preferred Stock, and $9,420 for the Series B-2 Convertible Preferred Stock.

The following table sets forth a summary of the fair value of the derivative liability.

---

| | |
|:---|:---|
|  | **June 30,<br> 2025** |
| Fair value of derivative liability of Series A-1 Convertible Preferred Stock | 1 |
| Fair value of derivative liability of Series B-1 Convertible Preferred Stock | 212 |
| Fair value of derivative liability of Series B-2 Convertible Preferred Stock | 179 |
| Total derivative liability | $392 |

---

***Income Taxes***

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. At June 30, 2025 and December 31, 2024, the Company had a full valuation allowance against its deferred tax assets.

***Offering Costs***

Offering costs incurred in connection with equity are recorded as a reduction of equity and offering costs incurred in connection with debt are recorded as a reduction of debt as a debt discount.

***Revenue Recognition***

In accordance with ASC 606 (Revenue From Contracts with Customers), revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these services. To achieve this core principle, the Company applies the following five steps:

1) *Identify the contract with a customer*

2) *Identify the performance obligations in the contract*

3) *Determine the transaction price*

4) *Allocate the transaction price to performance obligations in the contract*

5) *Recognize revenue when or as the Company satisfies a performance obligation*

Revenues reported from services relating to the AditxtScore™ are recognized when the AditxtScore<sup>TM</sup> report is delivered to the customer. The services performed include the analysis of specimens received in the Company's CLIA laboratory and the generation of results which are then delivered upon completion.

The Company recognizes revenue in the following manner for the following types of customers:

Client Payers:

Client payers include physicians or other entities for which services are billed based on negotiated fee schedules. The Company principally estimates the allowance for credit losses for client payers based on historical collection experience and the period of time the receivable has been outstanding.

Cash Pay:

Customers are billed based on established patient fee schedules or fees negotiated with physicians on behalf of their patients. Collection of billings is subject to credit risk and the ability of the patients to pay.

Insurance:

Reimbursements from healthcare insurers are based on fee for service schedules. Net revenues recognized consist of amounts billed net of contractual allowances for differences between amounts billed and the estimated consideration the Company expects to receive from such payers, collection experience, and the terms of the Company's contractual arrangements.

***Leases***

The Company determines if an arrangement is a lease or implicitly contains a lease as well as if the lease is classified as an operating or finance lease in accordance with ASC 842, Leases (ASC 842), at inception based on the lease definition. Operating leases are included in operating lease ROU assets and operating lease liabilities in the Company's consolidated balance sheets. ROU assets represent the Company's right to use an underlying asset for the lease term. Lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date or the adoption date for existing leases based on the present value of lease payments over the lease term using an estimated discount rate.

Under Topic 842 (Leases), operating lease expense is generally recognized evenly over the term of the lease. The Company has operating leases consisting of office space, laboratory space, and lab equipment.

We have made a policy election regarding our real estate leases not to separate nonlease components from lease components, to the extent they are fixed. Nonlease components that are not fixed are expensed as incurred as variable lease expense. Our leases for laboratory and office facilities typically include variable nonlease components, such as common-area maintenance costs. We have also elected not to record on the consolidated balance sheets a lease that has a lease term of twelve months or less and does not contain a purchase option that we are reasonably certain to exercise.

Leases with an initial term of twelve months or less are not recorded on the balance sheet. We combine the lease and non-lease components in determining the lease liabilities and right of use ("ROU") assets.

***Stock-Based Compensation***

The Company accounts for stock-based compensation costs under the provisions of ASC 718, Compensation—Stock Compensation, which requires the measurement and recognition of compensation expense related to the fair value of stock-based compensation awards that are ultimately expected to vest. Stock-based compensation expense recognized includes the compensation cost for all stock-based payments granted to employees, officers, and directors based on the grant date fair value estimated in accordance with the provisions of ASC 718. ASC 718 is also applied to awards modified, repurchased, or cancelled during the periods reported. Stock-based compensation is recognized as expense over the employee's requisite vesting period and over the nonemployee's period of providing goods or services.

***Patents***

The Company incurs fees from patent licenses, which are reflected in research and development expenses, and are expensed as incurred. During the six months ended June 30, 2025 and 2024, the Company incurred patent licensing fees of $108,519 and $61,666, respectively.

***Research and Development***

We incur research and development costs during the process of researching and developing our technologies and future offerings. We expense these costs as incurred unless such costs qualify for capitalization under applicable guidance. During the six months ended June 30, 2025 and 2024, the Company incurred research and development costs of $1,973,532 and $9,698,626, respectively.

***Sales and Marketing***

We incur sales and marketing costs marketing our technologies. We expense these costs as incurred unless such costs qualify for capitalization under applicable guidance. During the six months ended June 30, 2025 and 2024, the Company incurred sales and marketing costs of $399,951 and $64,731, respectively.

***Non-controlling Interest in Subsidiary***

 

Non-controlling interests represent the Company's subsidiary's cumulative results of operations and changes in deficit attributable to non-controlling shareholders. During the six months ended June 30, 2025 and 2024, the Company recognized $381,006 and $213,227 in net loss attributable to non-controlling interest in Pearsanta. The Company owns approximately 90.0% of Pearsanta, Inc., as of June 30, 2025.

***Basic and Diluted Net Loss per Common Share***

Basic loss per common share is computed by dividing the net loss, less any deemed dividends, by the weighted average number of shares of common stock outstanding for each period. Diluted loss per share is computed by dividing the net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding plus the dilutive effect of shares issuable through the common stock equivalents. The weighted-average number of common shares outstanding excludes common stock equivalents because their inclusion would be anti-dilutive.

---

| | | | |
|:---|:---|:---|:---|
| **Instrument** | **Quantity<br> Issued and<br> Outstanding <br> as of<br> June 30,<br> 2025** | **Standard<br> Conversion<br> Common<br> Stock<br> Equivalent** | **Liquidation<br> Amount** |
| Series A Preferred Stock | - | - | $— |
| Series A-1 Convertible Preferred Stock | 21803 | 2456 | 27253448 |
| Series B Preferred Stock | - | - | - |
| Series B-1 Convertible Preferred Stock | 2689 | 332 | 3361250 |
| Series B-2 Convertible Preferred Stock | 2625 | 279 | 3281250 |
| Series C Preferred Stock | - | - | - |
| Series C-1 Convertible Preferred Stock | 2263 | 88 | 2828305 |
| Series D-1 Preferred Stock | - | - | - |
| Warrants | 602680 | 602680 | - |
| Options | 59 | 59 | - |
| Total Common Stock Equivalent | 632119 | 605894 | $36724253 |

---

***Recent Accounting Pronouncements***

The FASB issues ASUs to amend the authoritative literature in ASC. There have been several ASUs to date, including those above, that amend the original text of ASC. Management believes that those issued to date either (i) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to us or (iv) are not expected to have a significant impact on our financial statements.

**NOTE 4 – FIXED ASSETS**

The Company's fixed assets include the following on June 30, 2025:

---

| | | | |
|:---|:---|:---|:---|
|  | **Cost Basis** | **Accumulated<br> Depreciation** | **Net** |
| Computers | $378480 | $(377411) | $1069 |
| Lab Equipment | 2697987 | (1351895) | 1346092 |
| Office Furniture | 56656 | (24223) | 32433 |
| Other Fixed Assets | 136939 | (131708) | 5231 |
| Leasehold Improvements | 120440 | (92989) | 27451 |
| Total Fixed Assets | $3390502 | $(1978226) | $1412276 |

---

The Company's fixed assets include the following on December 31, 2024

---

| | | | |
|:---|:---|:---|:---|
|  | **Cost Basis** | **Accumulated<br> Depreciation** | **Net** |
| Computers | $378480 | $(374360) | $4120 |
| Lab Equipment | 2697987 | (1235236) | 1462751 |
| Office Furniture | 56656 | (21535) | 35121 |
| Other Fixed Assets | 136939 | (131278) | 5661 |
| Leasehold Improvements | 120440 | (80319) | 40121 |
| Total Fixed Assets | $3390502 | $(1842728) | $1547774 |

---

Depreciation expense was $67,047 and $157,197 for the three months ended June 30, 2025 and 2024, respectively. Depreciation expense was $135,498 and $300,129 for the six months ended June 30, 2025 and 2024, respectively. As of June 30, 2025 and December 31, 2024, the fixed assets that serve as collateral subject to the financed asset liability have a carrying value of $936,486 and $1,898,243, respectively.

Fixed asset activity for the six months ended June 30, 2025 consisted of the following:

---

| | |
|:---|:---|
|  | **For the<br> six months<br> ended<br> June 30,<br> 2025** |
| As of December 31, 2024 | $3390502 |
| Disposals | - |
| As of June 30, 2025 | $3390502 |

---

***Financed Assets:***

In October 2020, the Company purchased two pieces of lab equipment and financed them for a period of twenty-four months with a monthly payment of $19,487, with an interest rate of 8%. As of June 30, 2025, the Company has four payments in arrears.

In January of 2021, the Company purchased one piece of lab equipment and financed it for a period of twenty-four months with a monthly payment of $9,733, with an interest rate of 8%. As of June 30, 2025, the Company has four payments in arrears.

In March of 2021, the Company purchased five pieces of lab equipment and financed them for a period of twenty-four months with a monthly payment of $37,171, with an interest rate of 8%. As of June 30, 2025, the Company has seven payments in arrears.

As of June 30, 2025 all lab equipment financing agreements have matured and are in default status.

**NOTE 5 – INTANGIBLE ASSETS**

The Company's intangible assets include the following on June 30, 2025:

---

| | | | |
|:---|:---|:---|:---|
|  | **Cost Basis** | **Accumulated<br> Amortization** | **Net** |
| Proprietary Technology | $321000 | $(321000) | $- |
| Intellectual property | 10000 | (5556) | 4444 |
| Total Intangible Assets | $331000 | $(326556) | $4444 |

---

The Company's intangible assets include the following on December 31, 2024:

---

| | | | |
|:---|:---|:---|:---|
|  | **Cost Basis** | **Accumulated<br> Amortization** | **Net** |
| Proprietary Technology | $321000 | $(321000) | $- |
| Intellectual property | 10000 | (3889) | 6111 |
| Total Intangible Assets | $331000 | $(324889) | $6111 |

---

Amortization expense was $834 and $833 for the three months ended June 30, 2025 and 2024, respectively. Amortization expense was $1,667 and $1,666 for the six months ended June 30, 2025 and 2024, respectively. The Company's proprietary technology is being amortized over its estimated useful life of three years.

Intangible asset activity for the months ended June 30, 2025 consisted of the following:

---

| | |
|:---|:---|
|  | **For the<br> six months<br> ended<br> June 30,<br> 2025** |
| As of December 31, 2024 | 331000 |
| Additions | - |
| As of June 30, 2025 | $331000 |

---

**NOTE 6 – RELATED PARTY TRANSACTIONS**

On May 22, 2025, Amro Albanna, the Chief Executive Officer of the Company loaned $233,000 to the Company. The loan was evidenced by an unsecured promissory note (the "May 22nd Note"). Pursuant to the terms of the May 22nd Note, it will accrue interest at the Prime rate of seven and one-half percent (7.5%) per annum and is due on the earlier of November 22, 2025 or an event of default, as defined therein. As of June 30, 2025, the May 22nd Note was fully paid off.

On June 6, 2025, Shahrokh Shabahang, the Chief Innovation Officer of the Company loaned $70,000 to the Company. The loan was evidenced by an unsecured promissory note (the "June 5th Note"). Pursuant to the terms of the June 5th Note, it will accrue interest at the Prime rate of seven and one-half percent (7.5%) per annum and is due on the earlier of December 5, 2025 or an event of default, as defined therein. As of June 30, 2025, the June 5th Note was fully paid off.

On June 20, 2025, Amro Albanna, the Chief Executive Officer of the Company, and Shahrokh Shabahang, the Chief Innovation Officer of the Company, loaned $90,000 and $100,000, respectively, to the Company. The loans were evidenced by an unsecured promissory note (the "June 20th Notes"). Pursuant to the terms of the June 20th Notes, it will accrue interest at the Prime rate of seven and one-half percent (7.5%) per annum and is due on the earlier of July 20, 2025 or an event of default, as defined therein. As of June 30, 2025, the June 20th Notes were fully paid off.

**Evofem** 

Evofem is a related party of the Company due to the Chief Executive Officer of Evofem being a member of the Company's Board of Directors.

***Notes Receivable***

On April 8, 2025, the Company entered into a Securities Purchase Agreement (the "Evofem April Purchase Agreement") with Evofem, pursuant to which the Company purchased (i) a senior subordinated convertible note (the "Evofem April Note") of Evofem in the principal amount of $2,307,692, and (ii) a warrant (the "Evofem April Warrant") to purchase 149,850,150 shares of Evofem common stock for a purchase price of $1,500,000. The Evofem April Warrant is exercisable into shares of common stock of Evofem at an exercise price of $0.0154, subject to adjustment and may be exercised on a cashless basis. The Evofem April Warrant may not be exercised by the Company if, after giving effect to such an exercise, the Company would beneficially own in excess of 9.99% of Evofem stock. The fair value of the Evofem April Warrant was $235,389. The Evofem April Warrant is exercisable for a term of five years. The Company had fully funded the $1,500,000 on April 22, 2025.

The Evofem April Note is a senior subordinate obligation of Evofem and will accrue interest at a rate of 8% per annum, which will adjust to 12% upon an Event of Default (as defined in the Evofem April Note). The Evofem April Note is initially convertible into shares of common stock of Evofem at a conversion price of $0.0154 per share, subject to adjustment as described therein. The Evofem April Note may not be converted by the Company if, after giving effect to such conversion, the Company would beneficially own in excess of 9.99% of Evofem common stock. Unless earlier converted, or redeemed, the Evofem April Notes will mature on April 8, 2028.

The Company recorded an original issuance discount of $807,692, recorded a debt discount of $235,389 from the fair value of the warrants, and paid $1,500,000. The value of the warrants was being treated as a debt discount on the note. The debt discount from both the warrants and the original issuance discount are being amortized using the effective interest method.

As of June 30, 2025, the Evofem April Note has an outstanding principal balance of $2,307,692, an unamortized debt discount of $955,677, and accrued interest of $41,981.

On June 26, 2025, the Company entered into a Securities Purchase Agreement (the "Evofem June Purchase Agreement") with Evofem, pursuant to which the Company purchased (i) a senior subordinated convertible note (the "Evofem June Note") of Evofem in the principal amount of $1,423,077, and (ii) a warrant (the "Evofem June Warrant") to purchase 92,407,592 shares of Evofem common stock for a purchase price of $925,000. The Evofem June Warrant is exercisable into shares of common stock of Evofem at an exercise price of $0.0154, subject to adjustment and may be exercised on a cashless basis. The Evofem June Warrant may not be exercised by the Company if, after giving effect to such an exercise, the Company would beneficially own in excess of 9.99% of Evofem stock. The fair value of the Evofem June Warrant was $92,682. The Evofem June Warrant is exercisable for a term of five years. The Company had fully funded the $925,000 on June 26, 2025.

The Evofem June Note is a senior subordinate obligation of Evofem and will accrue interest at a rate of 8% per annum, which will adjust to 12% upon an Event of Default (as defined in the Evofem June Note). The Evofem June Note is initially convertible into shares of common stock of Evofem at a conversion price of $0.0154 per share, subject to adjustment as described therein. The Evofem June Note may not be converted by the Company if, after giving effect to such conversion, the Company would beneficially own in excess of 9.99% of Evofem common stock. Unless earlier converted, or redeemed, the Evofem June Notes will mature on June 26, 2028.

The Company recorded an original issuance discount of $498,077, recorded a debt discount of $92,682 from the fair value of the warrants, and paid $925,000. The value of the warrants was is being treated as a debt discount on the note. The debt discount from both the warrants and the original issuance discount are being amortized using the effective interest method.

As of June 30, 2025, the Evofem June Note has an outstanding principal balance of $1,423,077, an unamortized debt discount of $578,266, and accrued interest of $1,248.

For the period ended June 30, 2025, the fair value of each warrant granted with the notes receivable was estimated using the assumption and/or factors in the Black-Scholes Model as follows:

---

| | |
|:---|:---|
| Exercise price | $0.0154 |
| Expected dividend yield | 0% |
| Risk free interest rate | 7.79-3.88% |
| Expected life in years | 0.50-0.73 |
| Expected volatility | 175-180% |

---

The risk-free interest rate assumption for warrants granted is based upon observed interest rates on the United States Government Bond Equivalent Yield appropriate for the expected term of warrants.

The Company determined the expected volatility assumption for warrants granted using the historical volatility of Evofem's common stock.

The dividend yield assumption for warrants granted is based on the Evofems's history and expectation of dividend payouts. Evofem has never declared nor paid any cash dividends on its common stock.

***Fifth Amendment to Amended and Restated Merger Agreement***

 ****

On March 23, 2025, the Company, Adicure, Inc., and Evofem entered into Amendment No. 5 to the Amended and Restated Merger Agreement ("Amendment No. 5"), pursuant to which, the parties agreed that (i) Evofem shall use commercially reasonable efforts to hold the Company Shareholders Meeting (as defined under the A&R Merger Agreement) no later than September 26, 2025, (ii) the Company shall invest an additional $1,500,000 in Evofem no later than April 7, 2025 in exchange for additional shares of F-1 Preferred Stock and/or, at the Company's option, senior subordinated notes of Evofem, and (iii) the End Date shall be extended to September 30, 2025. See Note 13 for the current status of the Evofem transaction.

**NOTE 7 – NOTES PAYABLE**

*November Loan Agreement*

On November 7, 2023, the Company entered into a Business Loan and Security Agreement (the "November Loan Agreement") with the lender (the "Lender"), pursuant to which the Company obtained a loan from the Lender in the principal amount of $2,100,000 with an interest rate of 49%, which satisfied the outstanding balance on the August Loan of $1,089,000 and includes origination fees of $140,000 (the "November Loan"). Pursuant to the November Loan Agreement, the Company granted the Lender a continuing secondary security interest in certain collateral (as defined in the November Loan Agreement). The total amount of interest and fees payable by us to the Lender under the November Loan will be $3,129,000, which will be repaid in 34 weekly installments ranging from $69,000 - $99,000. The November Loan Agreement had an original maturity date of July 2, 2024. As of June 30, 2025, the November Loan has an outstanding principal balance of $560,268, an unamortized debt discount of $0, and accrued interest of $28,991. As of June 30, 2025, the November Loan Agreement is in default status.

*January Loan Agreement*

On January 24, 2024, the Company entered into a Business Loan and Security Agreement (the "January Loan Agreement") with a commercial funding source (the "January Lender"), pursuant to which the Company obtained a loan from the Lender in the principal amount of $3,600,000 and an interest rate of 49%, which includes origination fees of $252,000 (the "January Loan"). Pursuant to the January Loan Agreement, the Company granted the Lender a continuing secondary security interest in certain collateral (as defined in the January Loan Agreement). The total amount of interest and fees payable by the Company to the January Lender under the January Loan will be $5,364,000, which will be repayable by the Company in 30 weekly installments of $178,800. The January Loan Agreement had an original maturity date of August 12, 2024. The Company received net proceeds from the January Loan of $814,900 following repayment of the outstanding balance on the October Purchased Amount of $2,533,100. As of June 30, 2025, there was a remaining principal balance of $2,000,336, an unamortized debt discount of $0, and accrued interest of $597,393. As of June 30, 2025, the January Loan Agreement is in default status.

*September Note*

 

On September 17, 2024, the Company issued and sold a senior note (the "2024 September Note") to an accredited investor (the "2024 September Note Holder") in the original principal amount of $923,077 for a purchase price of $600,000, reflecting an original issue discount of $323,077. The 2024 September Note does not bear interest and has a maturity date of the earlier of (i) June 18, 2025 and (ii) the initial time of consummation by the Company after the date hereof of any public or private offering(s), individually or in the aggregate, of securities with gross proceeds of at least $1 million. The Company may prepay any portion of the outstanding principal of the 2024 September Note at any time without penalty. So long as any amounts remain outstanding under the 2024 September Note, 30% of the gross proceeds received by the Company on or after the date hereof from sales of common stock of the Company pursuant to any at-the-market offering, equity-line or other similar transaction shall be used to repay the 2024 September Note. The 2024 September Note was repaid in February 2025.

*Senior Notes*

 

On April 24, 2025, the Company issued and sold senior notes (each, a "April Note") to accredited investors in the aggregate original principal amount of $256,250 for a purchase price of $205,000, reflecting an aggregate original issue discount of $51,250. The April Notes bear interest at a rate of 10%per annum and have a maturity date of May 15, 2025 (the "April Notes Maturity Date"). So long as any amounts remain outstanding under the April Notes, 100% of the gross proceeds received by the Company on or after the date hereof from sales of common stock of the Company pursuant to any at-the-market offering, equity-line or other similar transaction shall be used to repay the April Notes. The April Notes contains certain standard events of default, as defined in the Note. Following the April Maturity Date and until all of the April Notes have been satisfied, the Company shall be prohibited from taking certain actions, including but not limited to, incurring any additional indebtedness, redeeming any capital stock or declaring or paying any dividends. As of June 30, 2025, April Notes have been repaid.

*May Note*

On May 9, 2025, the Company entered into a securities purchase agreement (the "May Purchase Agreement") with an accredited investor, pursuant to which the Company issued and sold a 30% Original Issue Discount Senior Secured Note (the "May 2025 Note") to an accredited investor in the original principal amount of $3,114,285.71 for a purchase price of $2,000,000. The May 2025 Note bears interest at a rate of 10% per annum (the "May Note Interest Rate") and has a maturity date of May 12, 2025 (the "May Note Maturity Date"). The May 2025 Note contains certain standard events of default, as defined in the May 2025 Note (each, an "May 2025 Event of Default"). Following any May 2025 Event of Default, the May 2025 Interest Rate on the May 2025 Note is automatically increased to 20% per annum to the extent permitted by law. The May 2025 Note is secured by the assets of the Company.

In connection with the May Purchase Agreement, the Company entered into forbearance agreements (each, a "Forbearance Agreement") with the holders (each, a "<u>Holder</u>") of certain outstanding shares of the Company's Series A-1 Convertible Preferred Stock and the Company's Series C-1 Convertible Preferred Stock. Pursuant to the Forbearance Agreement, the Company agreed, in consideration of the settlement of the Holder's claims and obligations with respect to one or more Triggering Events (as defined in the applicable Certificate of Designation) that: (i) provided that the Company receives gross proceeds of an aggregate of $10 million or more in the Proposed Offerings (as defined in the Forbearance Agreement), the Company shall concurrently redeem 5,124 of the Series A-1 Preferred Shares allocated pro rata among the holders of Series A-1 Preferred Shares in a Company Optional Redemption (as defined in the Certificate of Designation of the Series A-1 Preferred Shares), (ii) provided that the Company receives gross proceeds of $20 million or more in the Proposed Offerings, the Company shall concurrently redeem 8,200 of the Series A-1 Preferred Shares (or, if less, the remaining Series A-1 Preferred Shares then outstanding assuming the completion of any exercised Reinvestment Right (as defined in the Forbearance Agreement with respect thereto) allocated pro rata among the holders of Series A-1 Preferred Shares in a Company Optional Redemption, (iii) by no later than the first business day following the closing of any Additional Offering (as defined in the Forbearance Agreement), the Company shall redeem any remaining Series C-1 Preferred Shares (after giving effect to any Reinvestment Right with respect thereto) in a Company Optional Redemption, (iv) if the Company sells any securities pursuant to any VRT Potential Offering (as defined in the Forbearance Agreement), the Company shall apply 30% of the gross proceeds thereof to redeem any remaining Series C-1 Preferred Shares and/or any remaining Series A-1 Preferred Shares pro rata among the holders of Series C-1 Preferred Shares and/or Series A-1 Preferred Shares in a Company Optional Redemption, and (v) if the Company consummates any EVFM Sale (as defined in the Forbearance Agreement), the Company shall apply 30% of the gross proceeds thereof to redeem any remaining Series C-1 Preferred Shares and/or any remaining Series A-1 Preferred Shares pro rata among the holders of Series C-1 Preferred Shares and/or Series A-1 Preferred Shares in a Company Optional Redemption. The Forbearance Agreement has an expiration date of August 7, 2025. The Company applied $517,445 of the gross proceeds of the ATM as a payable to redeem approximately 450 of the Series A-1 Preferred Shares in a mandatory redemption. The remaining Series A-1 Preferred Shares are not contingently redeemable.

As of June 30, 2025, there was a remaining principal balance of $1,114,286, an unamortized debt discount of $0, and accrued interest of $41,855. The May 2025 Note is in default status as of June 30, 2025.

*Promissory Note*

 

On June 7, 2025, an investor entered into a $44,396 promissory note to the Company (the "June 2025 Promissory Note"). Pursuant to the terms of the note, it will accrue interest at a rate of seven and a half percent (7.50%) per annum, and is due on the earlier of December 5, 2025, or an event of default, as defined therein. As of June 30, 2025, there was a remaining principal balance of $44,396 and accrued interest of $210. Subsequent to June 30, 2025 this note was repaid. (Note 13)

*June Senior Notes*

 

On June 26, 2025, the Company issued and sold senior notes (each, a "June Note") to accredited investors in the aggregate original principal amount of $1,000,000 for a purchase price of $800,000, reflecting an aggregate original issue discount of $100,000. The original issuance discount is being straight line amortized over the life of the notes. The June Notes bear interest at a rate of 10%per annum and have a maturity date of September 30, 2025 (the "June Notes Maturity Date"). So long as any amounts remain outstanding under the June Notes, 100% of the gross proceeds received by the Company on or after the date hereof from sales of common stock of the Company pursuant to any at-the-market offering, equity-line or other similar transaction shall be used to repay the June Notes. The June Notes contains certain standard events of default, as defined in the Note. Following the June Maturity Date and until all of the June Notes have been satisfied, the Company shall be prohibited from taking certain actions, including but not limited to, incurring any additional indebtedness, redeeming any capital stock or declaring or paying any dividends. As of June 30, 2025, there was a remaining principal balance of $1,000,000, an unamortized debt discount of $191,667, and accrued interest of $1,096. During the three and six months ended June 30, 2025, the Company recognized $8,333 and $8,333 in amortization of debt discount. The proceeds of the June Notes were used in connection with the Evofem June Purchase Agreement. (Note 6)

**NOTE 8 – LEASES**

Our lease agreements generally do not provide an implicit borrowing rate; therefore, an internal incremental borrowing rate is determined based on information available at lease commencement date for purposes of determining the present value of lease payments. We used the incremental borrowing rate on June 30, 2025 and December 31, 2024 for all leases that commenced prior to that date. In determining this rate, which is used to determine the present value of future lease payments, we estimate the rate of interest we would pay on a collateralized basis, with similar payment terms as the lease and in a similar economic environment.

Our corporate headquarters is located in Mountain View, California where we lease approximately 5,810 square feet of laboratory and office space. The lease expired in August 31, 2024, subject to extension. As of September 1, 2024, the lease became month to month. As of June 30, 2025 the Company is current on this lease.

We also lease approximately 25,000 square feet in Richmond, Virginia. The lease expires on August 31, 2026, subject to extension. As of June 30, 2025 the Company is two months in arrears on this lease.

**LS Biotech Eight Default**

On May 10, 2024, the Company received written notice (the "2024 Default Notice") from LS Biotech Eight, LLC (the "Landlord"), the Landlord of the Company's CLIA-certified, CAP accredited, high complexity immune monitoring center in Richmond, Virginia, that the Company was in violation of its obligation to (i) pay Base Rent (as defined in the Lease) and Additional Rent (as defined in the Lease) in the amount of $431,182 in the aggregate, together with administrative charges and interest, as well as (ii) replenish the Security Deposit (as defined in the Lease) in the amount of $159,375, all as required under that certain Lease Agreement dated as of May 4, 2021 by and between the Landlord and the Company (the "Lease"). Pursuant to the Notice, the Landlord has demanded that a payment of $590,557 plus administrative charges and interest, which shall accrue at the Default Rate (as defined in the Lease) be made no later than May 17, 2024. As of June 30, 2025, the Company has made the payment of $431,182 and is currently two months in arrears on the Lease.

The Company is working with the Landlord to come to an amicable resolution. However, no assurance can be given that the parties will reach an amicable resolution on a timely basis, on favorable terms, or at all.

*Lease Costs*

---

| | | |
|:---|:---|:---|
|  | **Six Months<br> Ended<br> June 30,<br> 2025** | **Six Months<br> Ended<br> June 30,<br> 2024** |
| Components of total lease costs: |  |  |
| Operating lease expense | $556026 | $603072 |
| Total lease costs | $556026 | $603072 |

---

*Lease Positions as of June 30, 2025 and December 31, 2024*

ROU lease assets and lease liabilities for our operating leases are recorded on the balance sheet as follows:

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | **December 31,<br> 2024** |
| Assets |  |  |
| &nbsp;&nbsp;&nbsp;Right of use asset – long term | $886014 | $1225781 |
| Total right of use asset | $886014 | $1225781 |
| Liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities – short term | $693613 | $683352 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities – long term | 113357 | 436354 |
| Total lease liability | $806970 | $1119706 |

---

*Lease Terms and Discount Rate as of June 30, 2025*

---

| | |
|:---|:---|
| Weighted average remaining lease term (in years) – operating leases | 1.08 |
| Weighted average discount rate – operating leases | 8.0% |

---

*Maturities of leases are as follows:*

---

| | |
|:---|:---|
| 2025 (remaining) | $358756 |
| 2026 | 423930 |
| Total lease payments | $782686 |
| Less imputed interest | 24284 |
| Less current portion | (693613) |
| Total maturities, due beyond one year | $113357 |

---

**NOTE 9 – COMMITMENTS & CONTINGENCIES**

***License Agreement with Loma Linda University***

On March 15, 2018, as amended on July 1, 2020, we entered into a LLU License Agreement directly with Loma Linda University.

Pursuant to the LLU License Agreement, we obtained the exclusive royalty-bearing worldwide license in and to all intellectual property, including patents, technical information, trade secrets, proprietary rights, technology, know-how, data, formulas, drawings, and specifications, owned or controlled by LLU and/or any of its affiliates (the "LLU Patent and Technology Rights") and related to therapy for immune-mediated inflammatory diseases (the ADI™ technology). In consideration for the LLU License Agreement, we issued 1 shares of common stock to LLU.

Pursuant to the LLU License Agreement, we are required to pay an annual license fee to LLU. Also, we paid LLU $455,000 in July 2020 for outstanding milestone payments and license fees. We are also required to pay to LLU milestone payments in connection with certain development milestones. Specifically, we are required to make the following milestone payments to LLU: $175,000 on June 30, 2022; $100,000 on September 30, 2024; $500,000 on September 30, 2026; and $500,000 on September 30, 2027. In lieu of the $175,000 milestone payment due on September 30, 2023, the Company paid LLU an extension fee of $100,000. The Company did not make the September 30, 2024 payment; the Company intends to obtain an extension for this payment. Upon payment of this extension fee, an additional year will be added for the September 30, 2023 milestone. Additionally, as consideration for prior expenses incurred by LLU to prosecute, maintain and defend the LLU Patent and Technology Rights, we made the following payments to LLU: $70,000 at the end of December 2018, and a final payment of $60,000 at the end of March 2019. We are required to defend the LLU Patent and Technology Rights during the term of the LLU License Agreement. Additionally, we will owe royalty payments of (i) 1.5% of Net Product Sales (as such terms are defined under the LLU License Agreement) and Net Service Sales on any Licensed Products (defined as any finished pharmaceutical products which utilizes the LLU Patent and Technology Rights in its development, manufacture or supply), and (ii) 0.75% of Net Product Sales and Net Service Sales for Licensed Products and Licensed Services (as such terms are defined under the LLU License Agreement) not covered by a valid patent claim for technology rights and know-how for a three (3) year period beyond the expiration of all valid patent claims. We also are required to produce a written progress report to LLU, discussing our development and commercialization efforts, within 45 days following the end of each year. All intellectual property rights in and to LLU Patent and Technology Rights shall remain with LLU (other than improvements developed by or on our behalf).

The LLU License Agreement shall terminate on the last day that a patent granted to us by LLU is valid and enforceable or the day that the last patent application licensed to us is abandoned. The LLU License Agreement may be terminated by mutual agreement or by us upon 90 days written notice to LLU. LLU may terminate the LLU License Agreement in the event of (i) non-payments or late payments of royalty, milestone and license maintenance fees not cured within 90 days after delivery of written notice by LLU, (ii) a breach of any non-payment provision (including the provision that requires us to meet certain deadlines for milestone events (each, a "Milestone Deadline")) not cured within 90 days after delivery of written notice by LLU and (iii) LLU delivers notice to us of three or more actual breaches of the LLU License Agreement by us in any 12-month period. Additional Milestone Deadlines include: (i) the requirement to have regulatory approval of an IND application to initiate first-in-human clinical trials on or before September 30, 2023, which will be extended to September 30, 2024 with a payment of a $100,000 extension fee, (ii) the completion of first-in-human (phase I/II) clinical trials by September 30, 2024, which the Company is actively pursuing an extension, (iii) the completion of Phase III clinical trials by September 30, 2026 and (iv) biologic licensing approval by the FDA by September 30, 2027. The Company has not initiated clinical trials to date and the Company intends to obtain an extension to commence human trials by September 30, 2025.

**License Agreement with Leland Stanford Junior University**

On February 3, 2020, we entered into an exclusive license agreement (the "February 2020 License Agreement") with Stanford regarding a patent concerning a method for detection and measurement of specific cellular responses. Pursuant to the February 2020 License Agreement, we received an exclusive worldwide license to Stanford's patent regarding use, import, offer, and sale of Licensed Products (as defined in the agreement). The license to the patented technology is exclusive, including the right to sublicense, beginning on the effective date of the agreement, and ending when the patent expires. Under the exclusivity agreement, we acknowledged that Stanford had already granted a non-exclusive license in the Nonexclusive Field of Use, under the Licensed Patents in the Licensed Field of Use in the Licensed Territory (as those terms are defined in the February 2020 License Agreement"). However, Stanford agreed to not grant further licenses under the Licensed Patents in the Licensed Field of Use in the Licensed Territory. On December 29, 2021, we entered into an amendment to the February 2020 License Agreement which extended our exclusive right to license the technology deployed in AditxtScore<sup>TM</sup> and securing worldwide exclusivity in all fields of use of the licensed technology.

We were obligated to pay and paid a fee of $25,000 to Stanford within 60 days of February 3, 2020. We also issued 1 shares of the Company's common stock to Stanford. An annual licensing maintenance fee is payable by us on the first anniversary of the February 2020 License Agreement in the amount of $40,000 for 2021 through 2024 and $60,000 starting in 2025 until the license expires upon the expiration of the patent. The Company is required to pay and has paid $25,000 for the issuances of certain patents. The Company will pay milestone fees of $50,000 on the first commercial sales of a licensed product and $25,000 at the beginning of any clinical study for regulatory clearance of an in vitro diagnostic product developed and a potential licensed product. The Company paid a milestone fee for a clinical study for regulatory clearance of an in vitro diagnostic product developed and a potential licensed product of $25,000 in March of 2022. We are also required to: (i) provide a listing of the management team or a schedule for the recruitment of key management positions by June 30, 2020 (which has been completed), (ii) provide a business plan covering projected product development, markets and sales forecasts, manufacturing and operations, and financial forecasts until at least $10,000,000 in revenue by June 30, 2020 (which has been completed), (iii) conduct validation studies by September 30, 2020 (which has been completed), (iv) hold a pre-submission meeting with the FDA by September 30, 2020 (which has been completed), (iv) submit a 510(k) application to the FDA, Emergency Use Authorization ("EUA"), or a Laboratory Developed Test ("LDT") by March 31, 2021 (which has been completed), (vi) develop a prototype assay for human profiling by December 31, 2021 (which has been completed), (vii) execute at least one partnership for use of the technology for transplant, autoimmunity, or infectious disease purposes by March 31, 2022 (which has been completed) and (viii) provided further development and commercialization milestones for specific fields of use in writing prior to December 31, 2022.

In addition to the annual license maintenance fees outlined above, we will pay Stanford royalties on Net Sales (as such term is defined in the February 2020 License Agreement) during the of the term of the agreement as follows: 4% when Net Sales are below or equal to $5 million annually or 6% when Net Sales are above $5 million annually. The February 2020 License Agreement may be terminated upon our election on at least 30 days advance notice to Stanford, or by Stanford if we: (i) are delinquent on any report or payment; (ii) are not diligently developing and commercializing Licensed Product; (iii) miss certain performance milestones; (iv) are in breach of any provision of the February 2020 License Agreement; or (v) provide any false report to Stanford. Should any events in the preceding sentence occur, we have a thirty (30) day cure period to remedy such violation.

 

 

***Call Option Agreement***

 

On April 10, 2025, the Company entered into a Call Option Agreement (the "Option Agreement") with Adjuvant Global Health Technology Fund, L.P. and Adjuvant Global Health Technology fund DE, L.P. (collectively, the "Security Holder") and Evofem, pursuant to which the Security Holder granted the Company a call option (the "Option") to purchase, at the sole discretion of the Company, the Evofem Securities (defined below) for an aggregate purchase price of $13 million. The "Evofem Securities" consist of convertible promissory notes of Evofem in the aggregate principal amount of $25 million and certain right to receive common stock agreements issued by Evofem. The Option has a term commencing on or after the satisfaction in full of the repayment obligations under that certain Securities Purchase and Security Agreement by and between Evofem, Future Pak, LLC and the designated agent dated April 23, 2020, as amended to date (the "Future Pak Note"), until 5:00 Pacific time on June 30, 2025 (the "Call Period"). Pursuant to the Option Agreement, the Security Holder may not transfer the Evofem Securities without the prior written consent of the Company; provided, however, that (i) if the Company has not provided $1.5 million of capital to Evofem by April 30, 2025 (the "Funding Milestone"), the Security Holder may transfer the Evofem Securities after April 30, 2025 without the prior written consent of the Company; (ii) if the Funding Milestone has not been satisfied and the Future Pak Note is still held by Future Pak on May 31, 2025, the Security Holder may transfer the Evofem Securities after May 31, 2025, without the prior written consent of the Company; and (iii) if at any time the repayment obligations of the Future Pak Note have been satisfied through or by a transaction not associated with either the Company or the transactions contemplated under the Amended and Restated Agreement and Plan of Merger, as amended to date, by and between the Company, Adifem, Inc. and Evofem, the Security Holder may transfer the Evofem Securities, without the prior written consent of the Company. As of June 30, 2025, the Option was not exercised.

***Appili Mutual Waiver***

On January 30, 2025, the Company, Adivir, and Appili (the "Parties") entered into a mutual waiver, pursuant to which, among other things, the Parties waived certain provisions of the Arrangement Agreement relating to the Outside Date not occurring on or before January 31, 2025, such waiver effective until 5:00pm (ET) on February 28, 2025, in consideration of (i) a payment by Adivir to Appili in the amount of $125,000 on or before January 31, 2025, which was paid, and (ii) a payment by Adivir to Appili in the amount of $125,000 not later than February 14, 2025, which was paid, to the extent the Arrangement Agreement has not been completed prior to that time.

On February 28, 2025, the Parties entered into a waiver to waive any termination rights that they may have as a result of the effective time not occurring by February 28, 2025, which waiver shall expire on June 30, 2025 in consideration of (i) a payment by Adivir to Appili in the amount of $125,000 on or before February 28, 2025, which was paid, and (ii) a payment by Adivir to Appili in the amount of $125,000 not later than March 14, 2025 (collectively the "February Appili Waiver Payments"), which was paid, to the extent the Arrangement Agreement has not been completed prior to that time.

 

On April 2, 2025, the Company, Adivir, and Appili (the "Parties") entered into a Mutual Waiver (the "March Waiver"), pursuant to which the Parties waived any termination rights that they had as a result of the Effective Time not occurring by March 31, 2025, which waiver shall expire on April 30, 2025 in consideration of a payment by the Company to Appili in the amount of $250,000 no later than 5:00 pm (ET) on April 18, 2025, provided that in the event a Termination Fee becomes payable by the Company or Aditxt pursuant to the Arrangement Agreement, the amount payable by the Company or Aditxt to Appili shall be reduced by the amount of the Waiver Fee paid by Adivir to Appili. As of the date of this filing, the $250,000 has not been paid.

On May 2, 2025, the Parties entered into a waiver to waive any termination rights that they may have as a result of the effective time not occurring by April 30, 2025, which waiver shall expire on May 31, 2025 in consideration of a payment by Adivir to Appili in the amount of $250,000 on or before May 15, 2025 to the extent the Arrangement Agreement has not been completed prior to that time. As of the date of this filing, the $250,000 has not been paid.

**Appili Termination** 

The Parties terminated the Arrangement Agreement effective May 31, 2025. In connection with the termination of the Arrangement Agreement, the Company is required to pay a $1,250,000 termination fee (the "Appili Termination Fee"). The February Appili Waiver Payments of $250,000 has been applied to the Appili Termination fee. As of June 30, 2025 there is $1,000,000 remaining of the Appili Termination Fee. The Appili Termination Fee is recorded in general and administrative expenses.

**NOTE 10 – STOCKHOLDERS' EQUITY**

***Common Stock***

On March 14, 2025, the Company effectuated a 1-for-250 reverse stock split (the "2025 Reverse Split"). The Company's stock began trading at the 2025 Reverse Split price effective on the Nasdaq Stock Market on March 17, 2025.

On March 14, 2025, Pearsanta effectuated a 1-for-60 reverse stock split (the "2025 Pearsanta Reverse Split"). There was no change to the number of authorized shares of Pearsanta's common stock. All share amounts referenced in this report are adjusted to reflect the 2025 Pearsanta Reverse Split.

During the six months ended June 30, 2024, the Company issued 5 shares of common stock as part of the MDNA asset purchase agreement. During the six months ended June 30, 2024, the Company issued 30 shares of common stock as part of a settlement agreement.

***At the Market Offering Agreement Amendment & Activity***

 ****

On October 25, 2024 the Company entered into an amendment to the existing At The Market Offering Agreement (the "ATM") with H.C. Wainwright & Co., LLC as agent (the "Agent"), pursuant to which the Company may offer and sell, from time to time through the Agent, shares of the Company's common stock having an aggregate offering price of up to $35,000,000 (the "ATM Shares").

During the six months ended June 30, 2025, the Company sold 2,048,002 ATM Shares at an average price of $4.18 per share under the ATM. The sale of the ATM Shares generated net proceeds of approximately $8,560,920 after paying fees and expenses.

***ELOC Activity***

On May 2, 2024, the Company entered into a Common Stock Purchase Agreement (the "ELOC Purchase Agreement") with an equity line investor (the "ELOC Investor"), pursuant to which the ELOC Investor has agreed to purchase from the Company, at the Company's direction from time to time, in its sole discretion, from and after the date effective date of the Registration Statement (as defined below) and until the termination of the ELOC Purchase Agreement in accordance with the terms thereof, shares of the Company's common stock having a total maximum aggregate purchase price of $150,000,000 (the "ELOC Purchase Shares"), upon the terms and subject to the conditions and limitations set forth in the ELOC Purchase Agreement.

 ****

In January 2025, the Company issued a total of 46,157 shares to the ELOC Investor in connection with $2,250,000 in commitment fees as defined in the ELOC Purchase Agreement.

 ****

During the six months ended June 30, 2025, the Company sold 853,959 shares at an average price of $18.99 per share under the ELOC Purchase Agreement. The sale of shares generated net proceeds of approximately $16,216,915 after paying fees and expenses.

***Preferred Stock***

The Company is authorized to issue 3,000,000 shares of preferred stock, par value $0.001 per share. There were 29,380 and 35,758 shares of preferred stock outstanding as of June 30, 2025 and December 31, 2024, respectively.

All series of the Company's convertible preferred stock include alternate conversion provisions. The Company's convertible preferred stock also contains floor pricing provisions; the Company has the discretion to issue shares below the floor price.

---

| | | | |
|:---|:---|:---|:---|
| **Aditxt Preferred Share Class** | **Quantity<br> Issued and<br> Outstanding<br> as of<br> June 30,<br> 2025** | **Standard<br> Conversion<br> Common<br> Stock<br> Equivalent** | **Liquidation<br> Amount** |
| Series A Preferred Stock | - | - | $- |
| Series A-1 Convertible Preferred Stock | 21803 | 2456 | 27253448 |
| Series B Preferred Stock | - | - | - |
| Series B-1 Convertible Preferred Stock | 2689 | 332 | 3361250 |
| Series B-2 Convertible Preferred Stock | 2625 | 279 | 3281250 |
| Series C Preferred Stock | - | - | - |
| Series C-1 Convertible Preferred Stock | 2263 | 88 | 2828305 |
| Series D-1 Preferred Stock | - | - | - |
| Total Aditxt Preferred Shares Outstanding | 29380 | 3155 | $36724253 |

---

***Series A-1 Convertible Preferred Stock Redemptions***

During the six months ended June 30, 2025, the Company redeemed approximately 268 shares of Series A-1 Convertible Preferred Stock for $308,000.

In connection with the May Purchase Agreement, the Company applied $517,445 of the gross proceeds of the ATM as a payable to redeem approximately 450 of the Series A-1 Preferred Shares in a mandatory redemption. As of June 30, 2025, the remaining Series A-1 Preferred Shares are contingently redeemable until the Forbearance Agreement expiration date of August 7, 2025. (Note 7)

***Series C-1 Convertible Preferred Stock Redemptions***

 ****

For the six months ended June 30, 2025, the Company redeemed approximately 6,110 shares of Series C-1 Convertible Preferred Stock for $7,027,070. As of the date of this report, the Company has an outstanding redemption payable of 2,263 shares Series C-1 Convertible Preferred Stock of $3,956,819.

***Pearsanta Acquisition of Assets***

  ****

On March 24, 2025, Pearsanta, a majority-owned subsidiary of the Company entered into an Agreement for the Acquisition of Patents (the "Pearsanta Acquisition Agreement") with the holders (the "Asset Holders") of certain patents and intellectual property assets (the "Pearsanta Acquired Assets"), which are related to the detection of DNA adducts for detection of changes to the DNA that may lead to potentially disease-causing mutations, pursuant to which Pearsanta acquired the Pearsanta Acquired Assets in consideration of the issuance by Pearsanta to the Asset Holders of an aggregate of 200 shares of Series B Convertible Preferred Stock, par value $0.001 per share (the "Pearsanta Series B Preferred Stock"). The Pearsanta Series B Preferred Stock valued at $50.00 per share resulting in $10,000 of patent expenses being recognized on the statement of operations.

Pursuant to the Certificate of Designation of Preferences, Rights and Limitations of the Pearsanta Series B Preferred Stock, the Pearsanta Series B Preferred Stock will be mandatorily and automatically converted, with no further action on the part of the holders thereof, into 1,000 fully paid and nonassessable shares of common stock (1:1,000) (the "Series B Conversion Ratio") of Pearsanta upon the consummation of a firm underwritten initial public offering of the common stock for cash effected pursuant to a registration statement or similar document filed by or on behalf of Pearsanta under the Securities Act of 1933, as amended (a "Pearsanta Qualifying IPO"), provided, however, that if the value of such Pearsanta Series B Preferred Stock, on an as-converted basis, at the time of the pricing of the Pearsanta common stock in connection with the Pearsanta Qualifying IPO does not equal $1,000,000, then the conversion ratio of the Pearsanta Series B Preferred Stock will be adjusted such that the value of the securities received in the Pearsanta Qualifying IPO by the Asset Holders shall equal $1,000,000 in the aggregate.

***Stock-Based Compensation***

In October 2017, our Board of Directors adopted the Aditx Therapeutics, Inc. 2017 Equity Incentive Plan (the "2017 Plan"). The 2017 Plan provides for the grant of equity awards to directors, employees, and consultants. The Company is authorized to issue up to 2,500,000 shares of our common stock pursuant to awards granted under the 2017 Plan. The 2017 Plan is administered by our Board of Directors, and expires ten years after adoption, unless terminated earlier by the Board of Directors. All shares of our common stock pursuant to awards under the 2017 Plan have been awarded.

On February 24, 2021, our Board of Directors adopted the Aditx Therapeutics, Inc. 2021 Omnibus Equity Incentive Plan (the "2021 Plan"). The 2021 Plan provides for grants of nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock and restricted stock units, and other stock-based awards (collectively, the "Awards"). Eligible recipients of Awards include employees, directors or independent contractors of the Company or any affiliate of the Company. The Compensation Committee of the Board of Directors (the "Committee") administers the 2021 Plan. An amendment to the 2021 Plan was submitted and approved by the Company's stockholders at the 2024 annual meeting of stockholders, increasing the shares of common stock issuable under the plan by 12,500. A total of 14,000 shares of common stock, par value $0.001 per share, of the Company may be issued pursuant to Awards granted under the 2021 Plan. The exercise price per share for the shares to be issued pursuant to an exercise of a stock option will be no less than one hundred percent (100%) of the Fair Market Value (as defined in the 2021 Plan) of a share of common stock on the date of grant. The 2021 Plan was submitted and approved by the Company's stockholders at the 2021 annual meeting of stockholders, held on May 19, 2021.

During the six months ended June 30, 2025 and 2024, the Company granted no new options.

The Company recognizes option forfeitures as they occur, as there is insufficient historical data to accurately determine future forfeitures rates.

The following is an analysis of the stock option grant activity under the Plan:

---

| | | | |
|:---|:---|:---|:---|
| **Vested and Nonvested Stock Options** | **Number** | **Weighted<br> Average<br> Exercise<br> Price** | **Weighted<br> Average<br> Remaining<br> Life** |
| Outstanding December 31, 2024 | 60 | $44395124.59 | 6.10 |
| Granted | - | - | - |
| Exercised | - | - | - |
| Expired or forfeited | (1) | 150200000.00 | - |
| Outstanding June 30, 2025 | 59 | $40808518.64 | 5.81 |

---

---

| | | |
|:---|:---|:---|
| **Nonvested Stock Options** | **Number** | **Weighted-<br> Average<br> Exercise<br> Price** |
| Nonvested on December 31, 2024 |  | $- |
| Granted |  | - |
| Vested |  | - |
| Forfeited |  | - |
| Nonvested on June 30, 2025 |  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |

---

As of June 30, 2025 there were 59 exercisable options; these options had a weighted average exercise price $40,808,518.64.

On December 18, 2023, our Board of Directors adopted the Pearsanta, Inc. 2023 Omnibus Equity Incentive Plan (the "Pearsanta 2023 Plan") and the 2023 Parent Service Provider Equity Incentive Plan (the "Pearsanta Parent 2023 Plan"), collectively (the "Pearsanta Plans"). The Pearsanta Plans provides for grants of nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock and restricted stock units, and other stock-based awards (collectively, the "Pearsanta Awards"). Eligible recipients of Pearsanta Awards include employees, directors or independent contractors of the Company or any affiliate of the Company. The Board of Directors administers the Pearsanta Plans. The Pearsanta 2023 Plan consists of a total of 250,000 shares of Pearsanta common stock, par value $0.001 per share, which may be issued pursuant to Pearsanta Awards granted under the Pearsanta 2023 Plan. The Pearsanta Parent 2023 Plan consists of a total of 155,334 shares of Pearsanta common stock, par value $0.001 per share, which may be issued pursuant to Pearsanta Awards granted under the Pearsanta Parent 2023 Plan. The exercise price per share for the shares to be issued pursuant to an exercise of a stock option will be no less than one hundred percent (100%) of the Fair Market Value (as defined in the Pearsanta Plans) of a share of Common Stock on the date of grant.

During the six months ended June 30, 2025 and 2024, Pearsanta granted no new options under the Pearsanta 2023 Plan.

The following is an analysis of the stock option grant activity under the Pearsanta Plans:

---

| | | | |
|:---|:---|:---|:---|
| **Vested and Nonvested Stock Options** | **Number** | **Weighted<br> Average<br> Exercise<br> Price** | **Weighted<br> Average<br> Remaining<br> Life** |
| Outstanding December 31, 2024 | 181227 | $1.19 | 8.84 |
| Granted | - | - | - |
| Exercised | - | - | - |
| Expired or forfeited | - | - | - |
| Rounding in connection with Reverse Split | - | - | - |
| Outstanding June 30, 2025 | 181227 | $1.19 | 8.34 |

---

---

| | | |
|:---|:---|:---|
| **Nonvested Stock Options** | **Number** | **Weighted-<br> Average<br> Exercise<br> Price** |
| Nonvested on December 31, 2024 |  | $- |
| Granted |  | - |
| Vested |  | - |
| Forfeited |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| Nonvested on June 30, 2025 |  | $- |

---

As of June 30, 2025, there were 181,227 exercisable options; these options had a weighted average exercise price $1.19.

The Company recognized stock-based compensation expense related to all options granted and vesting expense of $0 during the three months ended June 30, 2025. The Company recognized stock-based compensation expense related to all options granted and vesting expense of $0 during the six months ended June 30, 2025. The remaining value to be expensed is $0 as of June 30, 2025. The weighted average vesting term is 0 years as of June 30, 2025.

The Company recognized stock-based compensation expense related to all options granted and vesting expense of $4,095 during the three months ended June 30, 2024, of which $4,095 is included in general and administrative expenses in the accompanying statements of operations. The Company recognized stock-based compensation expense related to all options granted and vesting expense of $28,668 during the six months ended June 30, 2024, of which $28,688 is included in general and administrative expenses in the accompanying statements of operations.

***Warrants***

For the year ended December 31, 2024, the fair value of each warrant granted was estimated using the assumption and/or factors in the Black-Scholes Model as follows:

---

| | |
|:---|:---|
| Exercise price | $2 |
| Expected dividend yield | 0.0% |
| Risk free interest rate | 3.75% |
| Expected life in years | 1 |
| Expected volatility | 190.0% |

---

The risk-free interest rate assumption for warrants granted is based upon observed interest rates on the United States Government Bond Equivalent Yield appropriate for the expected term of warrants.

The Company determined the expected volatility assumption for warrants granted using the historical volatility of comparable public companies' common stock. The Company will continue to monitor peer companies and other relevant factors used to measure expected volatility for future warrant grants, until such time that the Company's common stock has enough market history to use historical volatility.

The dividend yield assumption for warrants granted is based on the Company's history and expectation of dividend payouts. The Company has never declared nor paid any cash dividends on its common stock, and the Company does not anticipate paying any cash dividends in the foreseeable future.

The Company recognizes warrant forfeitures as they occur, as there is insufficient historical data to accurately determine future forfeitures rates.

A summary of warrant issuances are as follows:

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| | | | |
|:---|:---|:---|:---|
| **Vested and Nonvested Warrants** | **Number** | **Weighted<br> Average<br> Exercise<br> Price** | **Weighted<br> Average<br> Remaining<br> Life** |
| Outstanding December 31, 2024 | 2680 | $659707.35 | 4.51 |
| Granted | 600000 | 2.00 | 1.98 |
| Exercised | - | - | - |
| Expired or forfeited | - | - | - |
| Outstanding June 30, 2025 | 602680 | $2935.58 | 1.99 |

---

---

| | | |
|:---|:---|:---|
| **Nonvested Warrants** | **Number** | **Weighted-<br> Average<br> Exercise<br> Price** |
| Nonvested on December 31, 2024 | - | $- |
| Granted | 600000 | 2.00 |
| Vested | (600000) | 2.00 |
| Forfeited | - | - |
| Nonvested on June 30, 2025 | - | $- |

---

The Company recognized stock-based compensation expense related to all warrants granted and vesting expense of $473,311 during the three months ended June 30, 2025. The Company recognized stock-based compensation expense related to all options granted and vesting expense of $473,311 during the six months ended June 30, 2025. The remaining value to be expensed is $0 as of June 30, 2025. The weighted average vesting term is 0 years as of June 30, 2025.

**NOTE 11 – INCOME TAXES**

The Company has incurred losses since inception. During the six months ended June 30, 2025, the Company did not provide any provision for income taxes as the Company incurred losses during such period. The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, "Accounting for Income Taxes". The asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and for operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. In assessing the need for a valuation allowance, the Company has considered both positive and negative evidence related to the likelihood of realization of deferred tax assets using a "more likely than not" standard. In making such assessment, more weight was given to evidence that could be objectively verified, including recent cumulative losses. Based on the Company's review of this evidence, the Company has recorded a full valuation allowance for its net deferred tax assets as of June 30, 2025.

As of June 30, 2025, the Company did not have any amounts recorded pertaining to uncertain tax positions.

**NOTE 12 – SEGMENT REPORTING**

The Company operates in one operating segment, and therefore one reportable segment, and is focused on the discovery and development of biopharmaceutical products. The Company's business activities are managed on a consolidated basis through the development and potential commercialization of biopharmaceutical products, which are aimed at the global market in the event that products are successful in receiving regulatory approvals. Our determination that we operate as a single operating segment is consistent with the financial information regularly reviewed by the chief operating decision makers for purposes of evaluating performance, allocating resources, setting incentive compensation targets, and planning and forecasting for future periods. Our chief operating decision makers is the Chief Executive Officer and Chief Financial Officer.

The accounting policies for our single operating segment are the same as those described in the summary of significant accounting policies. Our single operating segment incurs expenses from the development of biopharmaceutical products.

For the segment, the chief operating decision makers use net loss, that also is reported on the consolidated statements of operations as consolidated net loss, to allocate resources. The chief operating decision maker also uses consolidated net loss, along with non-financial inputs and qualitative information, to evaluate our performance, establish compensation, monitor budget versus actual results, and decide the allocation of funds in our various research activities.

**NOTE 13 – SUBSEQUENT EVENTS**

The Company has evaluated all significant events or transactions that occurred through August XX, 2025, the date these consolidated financial statements were available to be issued.

***Series C-1 Convertible Preferred Stock Redemptions***

For the period beginning July 1, 2025 through the date of this report, the Company redeemed approximately 275 shares of Series C-1 Convertible Preferred Stock for $316,632.

 ****

***Promissory Note Repayment***

 

On July 3, 2025, the Company repaid the June 2025 Promissory Note.

***Promissory Notes***

On August 13, 2025, Amro Albanna, the Chief Executive Officer of the Company, and Shahrokh Shabahang, the Chief Innovation Officer of the Company, loaned $95,000 and $95,000, respectively, to the Company. The loans were evidenced by an unsecured promissory note (the "August 13<sup>th</sup> Notes"). Pursuant to the terms of the August 13<sup>th</sup> Notes, it will accrue interest at the Prime rate of seven and one-half percent (7.5%) per annum and is due on the earlier of February 13, 2025 or an event of default, as defined therein.

***ELOC Activity***

For the period beginning July 1, 2025 through the date of this report, the Company sold 1,569,021 shares at an average price of $1.01 per share under the ELOC. The sale of shares generated net proceeds of approximately $1,586,996 after paying fees and expenses.

 ****

***At the Market Activity***

For the period beginning July 1, 2025 through the date of this report, the Company sold 230,605 shares at an average price of $1.34 per share under the ATM. The sale of ATM shares generated net proceeds of approximately $293,450 after paying fees and expenses.

**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations**

*The following discussion and analysis of our financial condition and results of operations should be read together with the unaudited condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q and the audited financial statements and related notes for the year ended December 31, 2024 included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission, or SEC. In addition to historical information, this discussion and analysis contains forward-looking statements that involve risks, uncertainties, and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors. We discuss factors that we believe could cause or contribute to these differences below and elsewhere in this Quarterly Report on Form 10-Q, including those factors set forth in the section entitled "Cautionary Note Regarding Forward-Looking Statements and Industry Data" and in the section entitled "Risk Factors" in Part II, Item 1A.*

**Overview and Mission**

We believe the world needs—and deserves—a new approach to innovating that harnesses the power of large groups of stakeholders who work together to ensure that the most promising innovations make it into the hands of people who need them most.

We were incorporated in the State of Delaware on September 28, 2017, and our headquarters are in Mountain View, California. The Company was founded with a mission of bringing stakeholders together, to transform promising innovations into products and services that could address some of the most challenging needs. The socialization of innovation through engaging stakeholders in every aspect of it, is key to transforming more innovations, more rapidly, and more efficiently.

At inception, the first innovation we took on was an immune modulation technology titled ADI/Adimune with a focus on prolonging life and enhancing life quality of patients that have undergone organ transplants. Since then, we expanded our portfolio of innovations, and we continue to evaluate a variety of promising health innovations.

**<u>ADIMUNE, INC.</u>**

Formed in January 2023, Adimune™, Inc. ("Adimune") is focused on leading our immune modulation therapeutic programs. Adimune's proprietary immune modulation product Apoptotic DNA Immunotherapy™ (ADI™) utilizes a novel approach that mimics the way our bodies naturally induce tolerance to our own tissues. It includes two DNA molecules designed to deliver signals to induce tolerance. ADI-100, the first product candidate based on the ADI platform, is designed to tolerize against an antigen known as glutamic acid decarboxylase ("GAD"), which is implicated in type-1 diabetes, psoriasis, and in many autoimmune diseases of the CNS and has been successfully tested in several preclinical models (e.g., skin grafting, psoriasis, type 1 diabetes, multiple sclerosis).

All preclinical studies ADI-100 have been completed providing several data points supporting the potential effectiveness of ADI-100 in restoring durable tolerance over the 10-month duration of the T1D studies both in prevention and treatment study designs. Preclinical safety and toxicology studies have shown absence of drug toxicity, no antibody formation to the drug product, and a lack of persistence in all organs evaluated. Furthermore, Adimune has demonstrated in three separate preclinical studies that ADI-100 does not impair the responsiveness of the immune system to combat infection, cancer, or the tumor fighting capabilities of checkpoint inhibitors.

Good Manufacturing Process (GMP) clinical-grade drug substances have been successfully manufactured by a qualified contract manufacturer. The clinical grade drug substances are now being prepared for shipment to another contract manufacturer to be formulated into the final drug product in preparation for stability testing and use in the clinical trials pending required regulatory submissions. Lastly, two remaining drug product release assays specifically designed for ADI-100 are in the final stages of validation to be used once the final drug product is ready.

Preclinical and manufacturing data, including the clinical-grade drug substance, are essential components of the complete dossier that we intend to submit to the regulatory agencies, which evaluate the safety and quality of the final drug product to be administered in the clinical trials. Adimune has had pre-submission meetings with the regulatory agency in Germany and has completed the additional studies requested.

For the clinical trials that are planned in Germany, Adimune has engaged with a Contract Research Organization (CRO) to manage the process, including site selection for clinical studies planned in psoriasis and type 1 diabetes. In parallel, Adimune is working with the Mayo Clinic to prepare the IND package for FDA submission and is awaiting a pre-IND meeting expected in the second quarter of this year to review the package before full submission. In May 2023, Adimune entered into a clinical trial agreement with Mayo Clinic to advance clinical studies targeting autoimmune diseases of the central nervous system ("CNS") with the initial focus on the rare, but debilitating, autoimmune disease Stiff Person Syndrome ("SPS"). According to the National Organization of Rare Diseases, the exact incidence and prevalence of SPS is unknown; however, one estimate places the incidence at approximately one in one million individuals in the general population. Pending approval by the International Review Board and U.S. Food and Drug Administration, a human trial for SPS is expected get underway in 2025 with enrollment of 10-20 patients, some of whom may also have type 1 diabetes. ADI-100 will initially be tested for safety and efficacy.

**Background**

The discovery of immunosuppressive (anti-rejection and monoclonal) drugs over 40 years ago has made possible life-saving organ transplantation procedures and blocking of unwanted immune responses in autoimmune diseases. However, immune suppression leads to significant undesirable side effects, such as increased susceptibility to life-threatening infections and cancers, because it indiscriminately and broadly suppresses immune function throughout the body. While the use of these drugs has been justifiable because they prevent or delay organ rejection, their use for treatment of autoimmune diseases and allergies may not be acceptable because of the aforementioned side effects. Furthermore, often transplanted organs ultimately fail despite the use of immune suppression, and about 40% of transplanted organs survive no more than five years.

Through Aditxt, Adimune has the right of use to the exclusive worldwide license for commercializing ADI nucleic acid-based technology (which is currently at the pre-clinical stage) from Loma Linda University. ADI uses a novel approach that mimics the way the body naturally induces tolerance to our own tissues ("therapeutically induced immune tolerance"). While immune suppression requires continuous administration to prevent rejection of a transplanted organ, induction of tolerance has the potential to retrain the immune system to accept the organ for longer periods of time. ADI may allow patients to live with transplanted organs with significantly reduced immune suppression. ADI is a technology platform which we believe can be engineered to address a wide variety of indications.

**Advantages**

ADI™ is a nucleic acid-based technology (*e.g.*, DNA-based), which we believe selectively suppresses only those immune cells involved in attacking or rejecting self and transplanted tissues and organs. It does so by tapping into the body's natural process of cell turnover (i.e., apoptosis) to retrain the immune system to stop unwanted attacks on self or transplanted tissues. Apoptosis is a natural process used by the body to clear dying cells and to allow recognition and tolerance to self-tissues. ADI triggers this process by enabling the cells of the immune system to recognize the targeted tissues as "self." Conceptually, it is designed to retrain the immune system to accept the tissues, similar to how natural apoptosis reminds our immune system to be tolerant to our own "self" tissues.

While various groups have promoted tolerance through cell therapies and *ex vivo* manipulation of patient cells (i.e., takes place outside the body), to our knowledge, we will be unique in our approach of using in-body induction of apoptosis to promote tolerance to specific tissues. In addition, ADI treatment itself will not require additional hospitalization but only an injection of minute amounts of the therapeutic drug into the skin.

 

Moreover, preclinical studies have demonstrated that ADI treatment significantly and substantially prolongs graft survival, in addition to successfully "reversing" other established immune-mediated inflammatory processes.

**License Agreement with Loma Linda University ("LLU")**

On March 15, 2018, we entered into a License Agreement with LLU, which was subsequently amended on July 1, 2020. Pursuant to the LLU License Agreement, we obtained the exclusive royalty-bearing worldwide license to all intellectual property, including patents, technical information, trade secrets, proprietary rights, technology, know-how, data, formulas, drawings, and specifications, owned or controlled by LLU and/or any of its affiliates (the "LLU Patent and Technology Rights") and related to therapy for immune-mediated inflammatory diseases (the ADI™ technology). In consideration for the LLU License Agreement, we issued 1 shares of common stock to LLU.

**<u>PEARSANTA, INC.</u>**

The best approach may be its early detection. Pearsanta is pioneering the development of molecular tests based on the mitochondrial genome to develop tests for early detection of cancer. Though further technical development and clinical validation is required to determine efficacy in multiple diseases and disease states, our management believes that the unique structural and functional characteristics of mitochondrial DNA (mtDNA), and more specifically mutated mtDNA, make mtDNA a biological system for biomarker identification, early disease detection, monitoring, risk assessment, and therapeutic targeting.

Pearsanta acquired the assets of MDNA Life Sciences Inc. on January 4, 2024. Through the acquisition of these assets, and in particular the Mitomic Technology platform, patents, and intellectual property, our management believes that the Pearsanta is well positioned for research and discovery of mitochondrial DNA based biomarkers, and though untested and requiring clinical validation, the development and commercial application of mitochondrial DNA based biomarkers for a wide spectrum of human diseases.

Pearsanta is continuing to leverage this technology to discover mitochondrial DNA based biomarkers. Though Pearsanta has no commercially available FDA or foreign regulator approved products, Pearsanta has two product candidates in develop and hopes to enter the cancer screening market with these two product candidates, and if proven successful continue to discover mitochondrial DNA based biomarkers and develop a pipeline of disease screening and diagnostics tests. The current in-development products include a potential product for prostate cancer diagnosis and a potential product for the detection of endometriosis. Pearsanta has also discovered mitochondrial DNA based biomarkers, which it believes are associated with ovarian cancer and lung cancer; and Pearsanta intends to pursue the biomarker identification phase of development for pancreatic, liver, breast, stomach, esophageal, and colorectal cancers.

**Licensed Technologies – AditxtScore<sup>TM</sup>** 

We issued Pearsanta an exclusive worldwide sub-license for commercializing the AditxtScore™ technology which provides a personalized comprehensive profile of the immune system. AditxtScore is intended to detect individual immune responses to viruses, bacteria, peptides, drugs, supplements, bone marrow and solid organ transplants, and cancer. It has broad applicability to many other agents of clinical interest impacting the immune system, including those not yet identified such as emerging infectious agents.

AditxtScore is being designed to enable individuals and their healthcare providers to understand, manage and monitor their immune profiles and to stay informed about attacks on or by their immune system. We believe AditxtScore can also assist the medical community and individuals by being able to anticipate the immune system's potential response to viruses, bacteria, allergens, and foreign tissues such as transplanted organs. This technology may be able to serve as a warning signal, thereby allowing for more time to respond appropriately. Its advantages include the ability to provide simple, rapid, accurate, high throughput assays that can be multiplexed to determine the immune status with respect to several factors simultaneously, in approximately 3-16 hours. In addition, it can determine and differentiate between distinct types of cellular and humoral immune responses (e.g., T and B cells and other cell types). It also provides for simultaneous monitoring of cell activation and levels of cytokine release (i.e., cytokine storms).

In collaboration with its partners, the platforms underlying AditxtScore are being further evaluated for evaluating the immune status of individuals including those with hypersensitivity to certain antigens (e.g., patients with autoimmunity). These tests may become tools that can monitor dynamic changes after administration of immunotherapies designed to tolerize to these target antigens.

**Advantages**

The sophistication of the AditxtScore technology includes the following:

● greater sensitivity/specificity.

● 20-fold higher dynamic range, greatly reducing signal to noise compared to conventional assays.

● ability to customize assays and multiplex a large number of analytes with speed and efficiency.

● ability to test for cellular immune responses (i.e., T and B cells and cytokines).

● proprietary reporting algorithm.

**License Agreement with Leland Stanford Junior University ("Stanford")**

On February 3, 2020, we entered into an exclusive license agreement (the "February 2020 License Agreement") with Stanford with regard to a patent concerning a method for detection and measurement of specific cellular responses. Pursuant to the February 2020 License Agreement, we received an exclusive worldwide license to Stanford's patent with regard to use, import, offer, and sale of Licensed Products (as defined in the agreement). The license to the patented technology is exclusive, including the right to sublicense, beginning on the effective date of the agreement, and ending when the patent expires. Under the exclusivity agreement, we acknowledged that Stanford had already granted a non-exclusive license in the Nonexclusive Field of Use, under the Licensed Patents in the Licensed Field of Use in the Licensed Territory (as those terms are defined in the "February 2020 License Agreement"). However, Stanford agreed not to grant further licenses under the Licensed Patents in the Licensed Field of Use in the Licensed Territory. On December 29, 2021, we entered into an amendment to the February 2020 License Agreement which extended our exclusive right to license the technology deployed in AditxtScore<sup>TM</sup> and securing worldwide exclusivity in all fields of use of the licensed technology.

 **Acquired Technologies – Mitomic® Technology Platform**

In January 2024 Pearsanta acquired the assets comprising our Mitomic® Technology platform from MDNA Life Sciences Inc. This platform seeks to harness the unique properties of mitochondrial DNA ("mtDNA") to detect disease through non-invasive, blood-based liquid biopsies. Though further technical development and clinical validation is required to determine efficacy in multiple diseases and disease states, our management believes that the unique structural and functional characteristics of mtDNA, and more specifically mutated mtDNA, make mtDNA a biological system for biomarker identification, early disease detection, monitoring, risk assessment, and therapeutic targeting.

Pearsanta plans to license distribution rights through various agreements with U.S.-based and international business partners to commercialize our Mitomic® Technology, should Mitomic® tests be successfully developed and successfully approved by the FDA or a foreign regulator. We believe our biomarker portfolio covers many high-clinical need cancers, with potential applications outside oncology.

Pearsanta a state-of-the-art facility located in Richmond VA, that is a high-complexity, CLIA-certified, and CAP-accredited laboratory equipped to accommodate rapid development and rollout of innovative laboratory tests for the clinical market. Our laboratory facility is optimized for contamination prevention including dedicated workspaces for key functions; advanced molecular biology capabilities including digital PCR, real-time PCR, automated electrophoresis with scale-up capacity and redundancy; and automated and semi-automated (robotic) processes for DNA/RNA isolation and liquid handling to achieve efficient and standardized workflows.

**Our Mitomic® Products and Product Candidates**

**The Mitomic® Technology** targets mutations in mitochondrial DNA to detect disease. Every human cell is home to multiple copies of mitochondrial DNA, some of which become mutated beyond repair when cells are stressed by diseases such as cancer. Though further technical development and clinical validation is required to determine efficacy, Mitomic® tests are being designed to detect this mutated DNA, which can accumulate from the very early stages of a disease. If the development of Mitomic® tests is successful and if Mitomic® tests can achieve their still unproven objective of early disease detection, our Mitomic® Technology presents an opportunity to detect disease before it presents clinically.

The Mitomic® Technology platform is designed to identify biomarker targets, develop robust assays, discover new biomarkers, and develop new products. The biomarker identification program is based on the identification of a new class of molecules generated through a process associated with mitochondria. The Mitomic® Technology platform has already discovered biomarkers which are believed to be associated with cancer and has generated an "in-silico" database, which is an experiment that generates thousands of potential biomarkers, developed through computer software and simulation.

To date, the Mitomic® Technology biomarker discoveries have identified numerous biomarker targets from the in-silico database and we plan to use these biomarker targets in its various assay development programs.

**Mitomic® Prostate Test (MPT™)** is currently in development and is being designed as a blood-based assay that quantifies the level of the 3.4kb mitochondrial DNA deletion. Published analytical data for the 3.4kb mitochondrial DNA deletion associated with prostate cancer, suggests the 3.4kb mitochondrial DNA deletion may be able to identify clinically significant prostate cancer for men in the prostate-specific antigen (PSA) grey zone (PSA < 10ng/ml) and if proven through ongoing clinical study, the 3.4kb mitochondrial DNA deletion may be able to aid in the decision to biopsy. Some of the significant clinical challenges that have not been met for prostate cancer are that up to 50% of men will be 'over' diagnosed with cancer that never harms them<sup>1</sup> and the risks associated with treatment of low-grade cancers (≤ Gleason 6) appear to outweigh the benefits –e.g. urinary incontinence, erectile dysfunction. <sup>1</sup> NIH National Cancer Institute reports this number is even higher at ~ 75% based on 5-year survival rates. Seer database (https://seer.cancer.gov/statfacts/html/prost.html).

Our Mitomic® Prostate Test is in development and is being designed with the following objectives:

● Simple – The test is expected to be completed using a patient's blood sample and is not expected to require an algorithm.

● Provide New Information – If ongoing clinical studies support the published analytical data for the 3.4kb mitochondrial DNA deletion, healthcare providers will be provided with new information related to clinically significant prostate cancer – independent of PSA, age, and family history.

**Mitomic Endometriosis Test (MET™)** is currently in development and is being designed as a blood-based assay that quantifies the level of one or more mitochondrial DNA deletions which published analytical data suggest are associated with endometriosis – a condition affecting approximately 1 in 10 women according to Endometriosis World and the World Health Organization. The Mitomic Endometriosis Test is intended for use in females of child-bearing age who present symptoms of endometriosis to determine whether medical or surgical intervention is warranted.

Endometriosis occurs when the tissue of the uterus (endometrium) grows on areas where it does not belong, most often on the ovaries, fallopian tubes, outer surface of the uterus, and tissues holding the uterus, but can be found almost anywhere in the body. Endometriosis is challenging to identify, and on average takes ten years to diagnose, and when patients are finally diagnosed, greater than 90% have moderate to severe symptoms.

**Acquired Technologies – Adductomics Technology**

On March 21, 2025, Pearsanta acquired certain patents related to the detection and analysis of DNA adducts. DNA adducts are chemically modified nucleotides that result from exposure to carcinogens and other damaging agents, serving as early indicators of genomic instability and increased cancer risk. The acquired technology includes proprietary mass-tag enhancements designed to improve the sensitivity and specificity of DNA adduct detection across a full genomic landscape.

Pearsanta intends to develop this platform to enable a comprehensive, panoramic assessment of DNA adducts using urine, blood, or solid tissue samples. This approach aims to provide actionable insights into DNA damage before mutations occur, offering the potential to identify environmental or biological factors that contribute to cancer risk. The development roadmap includes further validation of the technology and the creation of commercially available diagnostic kits. While still in the early stages, Pearsanta anticipates that additional development over the next two to three years will advance this platform toward clinical and commercial applications.

**<u>ADIVIR, INC.</u>**

Formed in April of 2023, Adivir™, Inc. is a wholly owned subsidiary, dedicated to the clinical and commercial development efforts of innovative products for population health, including antiviral and other antimicrobial products, which have the potential to address a wide range of infectious diseases, including those that currently lack viable treatment options.

**Background**

On April 18, 2023, we entered into an Asset Purchase Agreement (the "Asset Purchase Agreement") with Cellvera Global Holdings LLC ("Cellvera Global"), Cellvera Holdings Ltd. ("BVI Holdco"), Cellvera, Ltd. ("Cellvera Ltd."), Cellvera Development LLC ("Cellvera Development" and together with Cellvera Global, BVI Holdco, Cellvera Ltd. and Cellvera Development (the "Sellers"), AiPharma Group Ltd. ("Seller Owner" and collectively with the Sellers, "Cellvera"), and the legal representative of Cellvera, pursuant to which, the Company will purchase Cellvera's 50% ownership interest in G Response Aid FZE ("GRA"), certain other intellectual property and all goodwill related thereto (the "Acquired Assets"). Unless expressly stated otherwise herein, capitalized terms used but not defined herein have the meanings ascribed to them in the Asset Purchase Agreement. Pursuant to the Asset Purchase Agreement, the consideration for the Acquired Assets consists of (A) $24.5 million, comprised of: (i) the forgiveness of the Company's $14.5 million loan to Cellvera Global, and (ii) approximately $10 million in cash, and (B) future revenue sharing payments for a term of seven years. GRA holds an exclusive, worldwide license for the antiviral medication, Avigan® 200mg, excluding Japan, China and Russia. The other 50% interest in GRA is held by Agility, Inc. ("Agility").

Additionally, upon the closing, the Share Exchange Agreement previously entered into as of December 28, 2021, between Cellvera Global Holdings, LLC f/k/a AiPharma Global Holdings, LLC (together with other affiliates and subsidiaries) and the Company, and all other related agreements will be terminated.

The obligations of the Company to consummate the Closing under the Asset Purchase Agreement are subject to the satisfaction or waiver, at or prior to the Closing of certain conditions, including but not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Satisfactory completion of due diligence;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Completion by the Company of financing sufficient to consummate the transactions contemplated by the Asset Purchase Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Receipt by the Company of all required Consents from Governmental Bodies for the Acquisition, including but not limited to, any consents required to complete the transfer and assignment of Cellvera's membership interests in GRA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Receipt of executed payoff letters reflecting the amount required to be fully pay all of each of Seller's and Seller Owner's Debt to be paid at Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Receipt by the Company of a release from Agility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Execution of an agreement acceptable to the Company with respect to the acquisition by the Company of certain intellectual property presently held by a third party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Execution of an amendment to an asset purchase agreement previously entered into by Cellvera with a third party that effectively grants the Company the rights to acquire the intellectual property from the third party under such agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Receipt of a fairness opinion by the Company with respect to the transactions contemplated by the Asset Purchase Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) Receipt by the Company from the Seller Owner of written consent, whether through its official liquidator or the Board of Directors of Seller Owner, to the sale and purchase of the Acquired Assets and Assumed Liabilities pursuant to the Assert Purchase Agreement.

In October 2024, the Company received notice that Cellvera was the subject of a liquidation proceeding and that a liquidator had been appointed by the order of the Eastern Caribbean Supreme Court. As a result, the Company does not presently believe that the proposed acquisition of Cellvera will be completed as proposed or at all.

Our commitment to building our antiviral portfolio is strategic and timely. We believe that there has never has there been a more important time to address the growing global need to uncover new treatments or commercialize existing ones that treat life-threatening global viral infections.

**Our Team**

We have assembled a team of experts from a variety of scientific fields and commercial backgrounds, with many years of collective experience that ranges from founding startup biotech companies, to developing and marketing biopharmaceutical products, to designing clinical trials, and to managing private and public companies.

**Going Concern**

We were incorporated on September 28, 2017 and have not generated significant revenues to date. During the six months ended June 30, 2025 we had a net loss of $13,348,123 and cash of $323,679 as of June 30, 2025.

We are currently over 90 days past due on a significant number of vendor obligations. The Company will require significant additional capital to operate in the normal course of business and fund clinical studies in the long-term. We believe our remaining funds on hand will not be sufficient to fund our operations for the next 12 months and such creates substantial doubt about our ability to continue as a going concern beyond one year.

**Financial Results**

We have a limited operating history. Therefore, there is limited historical financial information upon which to base an evaluation of our performance. Our prospects must be considered in light of the uncertainties, risks, expenses, and difficulties frequently encountered by companies in their early stages of operations. Our condensed consolidated financial statements as of June 30, 2025, show a net loss of $13,348,123. We expect to incur additional net expenses over the next several years as we continue to maintain and expand our existing operations. The amount of future losses and when, if ever, we will achieve profitability are uncertain.

**Results of Operations**

***Results of operations for the three months ended June 30, 2025 and 2024***

We generated revenue of $1,004 and $44,276 for the three months ended June 30, 2025 and 2024, respectively. Cost of goods sold for the three months ended June 30, 2025 and 2024 was $1,005 and $23,134, respectively. The decrease in revenue and costs of goods sold during the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was due to a decrease in AditxtScore<sup>TM</sup> orders due to decreased COVID testing being done.

During the three months ended June 30, 2025, we incurred a loss from operations of $6,152,395. This is due to general and administrative expenses of $5,039,036, which includes approximately $1,121,252 in payroll expenses and $2,918,727 in professional fees. Research and development expenses were $764,327 which includes $2,250 in consulting expenses. Sales and marketing expenses were $349,031.

During the three months ended June 30, 2024, we incurred a loss from operations of $5,975,981. This is due to general and administrative expenses of $4,419,545, which includes approximately $1,484,996 in payroll expenses, $1,183,992 in professional fees, and $4,097 in stock-based compensation. Research and development expenses were $1,553,360, which includes $978,012 in consulting expenses. Sales and marketing expenses were $24,218.

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The increase in expenses during the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was due to decreased research and development spend.

***Results of operations for the six months ended June 30, 2025 and 2024***

We generated revenue of $2,022 and $123,956 for the six months ended June 30, 2025 and 2024, respectively. Cost of goods sold for the six months ended June 30, 2025 and 2024 was $1,739 and $88,933, respectively. The decrease in revenue and costs of goods sold during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was due to a decrease in AditxtScore<sup>TM</sup> orders due to decreased COVID testing being done.

During the six months ended June 30, 2025, we incurred a loss from operations of $11,760,510. This is due to general and administrative expenses of $9,387,310, which includes approximately $1,793,945 in payroll expenses and $4,589,509 in professional fees. Research and development expenses were $1,973,532 which includes $62,963 in consulting expenses. Sales and marketing expenses were $399,951.

During the six months ended June 30, 2024, we incurred a loss from operations of $17,511,627. This is due to general and administrative expenses of $7,783,293, which includes approximately $2,958,585 in payroll expenses, $2,329,671 in professional fees, and $28,670 in stock-based compensation. Research and development expenses were $9,698,626, which includes $1,179,591 in consulting expenses and $6,712,663 in stock-based compensation. Sales and marketing expenses were $64,731.

 ****

The decrease in expenses during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was due to decreased research and development spend.

**Liquidity and Capital Resources**

We have incurred substantial operating losses since inception and expect to continue to incur significant operating losses for the foreseeable future and may never become profitable. As of June 30, 2025, we had an accumulated deficit of $181,061,686. We had working capital of $(20,148,964) as of June 30, 2025. During the six months ended June 30, 2025, we purchased zero in fixed assets.

Our consolidated financial statements have been prepared assuming that we will continue as a going concern.

We will need significant additional capital to continue to fund our operations and the clinical trials for our product candidates. We may seek to sell common stock, preferred stock or convertible debt securities, enter into a credit facility or another form of third-party funding or seek other debt financing. In addition, we may seek to raise cash through collaborative agreements or from government grants. The sale of equity and convertible debt securities may result in dilution to our stockholders and certain of those securities may have rights senior to those of our common shares. If we raise additional funds through the issuance of preferred stock, convertible debt securities, or other debt financing, these securities or other debt could contain covenants that would restrict our operations. Any other third-party funding arrangement could require us to relinquish valuable rights.

The source, timing, and availability of any future financing will depend principally upon market conditions, and, more specifically, on the progress of our clinical development program. Funding may not be available when needed, at all, or on terms acceptable to us. Lack of necessary funds may require us to, among other things, delay, scale back or eliminate expenses including some or all our planned development, including our clinical trials. While we may need to raise funds in the future, we believe the current cash reserves should be sufficient to fund our operation for the foreseeable future. Because of these factors, we believe that this creates doubt about our ability to continue as a going concern.

**Contractual Obligations**

The following table shows our contractual obligations as of June 30, 2025:

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| | | | |
|:---|:---|:---|:---|
|  | **Payment Due by Year** | **Payment Due by Year** | **Payment Due by Year** |
|  | **Total** | **2025** | **2026** |
| Lease | $782686 | $358756 | $423930 |

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**Critical Accounting Polices and Estimates**

Our condensed consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States. The preparation of our condensed consolidated financial statements and related disclosures requires us to make estimates, assumptions and judgments that affect the reported amount of assets, liabilities, revenue, costs and expenses, and related disclosures. We believe that our critical accounting policies described under the heading "Management's Discussion and Analysis of Financial Condition and Plan of Operations—Critical Accounting Policies" in our Prospectus, dated September 1, 2020, filed with the SEC pursuant to Rule 424(b), are critical to fully understanding and evaluating our financial condition and results of operations. The following involve the most judgment and complexity:

● Research and development

● Stock-based compensation expense

Accordingly, we believe the policies set forth above are critical to fully understanding and evaluating our financial condition and results of operations. If actual results or events differ materially from the estimates, judgments and assumptions used by us in applying these policies, our reported financial condition and results of operations could be materially affected.

**Off-Balance Sheet Arrangements**

We did not have during the periods presented, and we do not currently have, any off-balance sheet arrangements, as defined in the rules and regulations of the SEC.

**JOBS Act**

On April 5, 2012, the JOBS Act was enacted. Section 107 of the JOBS Act provides that an "emerging growth company" can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act, for complying with new or revised accounting standards. In other words, an "emerging growth company" can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies.

When favorable, we have chosen to take advantage of the extended transition periods available to emerging growth companies under the JOBS Act for complying with new or revised accounting standards until those standards would otherwise apply to private companies provided under the JOBS Act.

We are in the process of evaluating the benefits of relying on other exemptions and reduced reporting requirements provided by the JOBS Act. Subject to certain conditions set forth in the JOBS Act, as an "emerging growth company," we intend to rely on certain of these exemptions, including without limitation, (i) providing an auditor's attestation report on our system of internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act and (ii) complying with any requirement that may be adopted by the Public Company Accounting Oversight Board ("PCAOB") regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial statements, known as the auditor discussion and analysis. We will remain an "emerging growth company" until the earliest of (i) the last day of the fiscal year in which we have total annual gross revenues of $1.07 billion or more; (ii) the last day of our fiscal year following the fifth anniversary of the date of the completion of our IPO (December 31, 2025); (iii) the date on which we have issued more than $1 billion in nonconvertible debt during the previous three years; or (iv) the date on which we are deemed to be a large accelerated filer under the rules of the SEC.

**Recently Issued and Adopted Accounting Pronouncements**

See Note 3 - Summary of Significant Accounting Policies to the accompanying condensed consolidated financial statements for a description of other accounting policies and recently issued accounting pronouncements.

**Recent Developments**

See Note 13 – Subsequent Event to the accompanying condensed consolidated financial statements for a description of material recent developments.

**Item 3. Quantitative and Qualitative Disclosures About Market Risk.**

We are not required to provide the information required by this Item as we are a "smaller reporting company," as defined in Rule 12b-2 of the Exchange Act.

**Item 4. Controls and Procedures.**

**Disclosure Controls and Procedures**

In accordance with Rules 13a-15(b) and 15d-15(b) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), we, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on the foregoing, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures have not materially changed since the Company determined that we did not maintain effective internal controls over financial reporting and the following weaknesses still exist as of June 30, 2025.

● We did not maintain adequate controls over the documentation of accounting and financial reporting policies and procedures. Specifically, we did not maintain policies and procedures to ensure account reconciliations were adequately prepared and reviewed by management.

● We did not retain individuals and/or entities with extensive knowledge to recognize and record technical and complex accounting issues.

● We did not maintain the sufficient procedures for the identification and cutoff of accounts payable.

These material weaknesses resulted in material misstatements to the financial statements, which were corrected. There were no changes to previously released financial results. We are in the process of remediating these material weaknesses.

**Change in Internal Control Over Financial Reporting**

No change occurred in our internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act) during the quarter ended June 30, 2025 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

**PART II - OTHER INFORMATION**

**Item 1. Legal Proceedings**

From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business.

**Item 1A. Risk Factors**

*Our business, financial condition, results of operations, and cash flows may be impacted by a number of factors, many of which are beyond our control, including those set forth below and in our most recent Annual Report on Form 10-K and in our other filings with the SEC, the occurrence of any one of which could have a material adverse effect on our actual results.*

***Our financial situation creates doubt whether we will continue as a going concern.***

The Company was incorporated on September 28, 2017 and through the date of this report has generated no significant revenues. For the years ended December 31, 2024 and 2023, the Company had a net loss of $34,446,486 and $32,390,447, respectively. Our condensed consolidated financial statements as of June 30, 2025, show a net loss of $13,348,123. Our cash and cash equivalents were approximately $323,679 as of June 30, 2025. There can be no assurances that we will be able to achieve a level of revenues adequate to generate sufficient cash flow from operations or additional financing through private placements, public offerings and/or bank financing necessary to support our working capital requirements. To the extent that funds generated from any private placements, public offerings and/or bank financing are insufficient, we will have to raise additional working capital. No assurance can be given that additional financing will be available, or if available, will be on acceptable terms. These conditions raise substantial doubt about our ability to continue as a going concern. If adequate working capital is not available, we may be forced to discontinue operations, which would cause investors to lose their entire investment.

***We are currently over 90 days past due on a significant amount of vendor obligations. We may not be able to refinance, extend or repay our substantial indebtedness owed to our secured and unsecured lenders, which would have a material adverse effect on our financial condition and ability to continue as a going concern.***

As of June 30, 2025, we have approximately $9.7 million in accounts payable with approximately $5.7 million that is over 90 days past due. If we are unable to repay these amounts, as well as our existing debt obligations at maturity, and we are otherwise unable to extend the maturity dates or refinance these obligations, we would be in default. We cannot provide any assurances that we will be able to raise the necessary amount of capital to repay these obligations or that we will be able to extend the maturity dates or otherwise refinance these obligations. Upon a default, our secured lenders would have the right to exercise their rights and remedies to collect, which would include foreclosing on our assets. Accordingly, a default would have a material adverse effect on our business, and we would likely be forced to seek bankruptcy protection.

***A significant number of shares of our common stock may be issued and sold upon the exercise of outstanding options, warrants, and upon the conversion of the Company's convertible preferred stock.***

As of June 30, 2025, there were 59 shares of common stock issuable under outstanding options, 602,680 shares of common stock issuable upon exercise of outstanding warrants at various exercise prices and approximately 0 shares of common stock reserved for issuance upon the standard conversion of outstanding convertible preferred stock. To the extent that holders of existing options, warrants or convertible preferred stock sell the shares of common stock issued upon the exercise of options or warrants or conversion of the convertible preferred stock, the market price of our common stock may decrease due to the additional selling pressure in the market. The risk of dilution from issuances of shares of common stock underlying existing options, warrants and convertible preferred stock may cause shareholders to sell their common stock, which could further decline in the market price.

***Our obligations to certain of our creditors are secured by security interests in our assets, so if we default on those obligations, our creditors could foreclose on some or all of our assets.***

Our obligations to certain of our creditors are secured by security interests in our assets. As of June 30, 2025, approximately $3.2 million was owed to such secured creditors. Under such agreements, we are required to pay $277,800 on a weekly basis to such creditors. If we default on our obligations under these agreements, our secured creditors could foreclose on its security interests and liquidate some or all of these assets, which would harm our financial condition and results of operations and would require us to reduce or cease operations and possibly seek Bankruptcy Protection.

***Our ability to have our securities traded on the Nasdaq Capital Market is subject to us meeting applicable listing criteria.***

 ****

If we are delisted from Nasdaq, but obtain a substitute listing for our common stock, it will likely be on a market with less liquidity, and therefore experience potentially more price volatility than experienced on Nasdaq. Stockholders may not be able to sell their shares of common stock on any such substitute market in the quantities, at the times, or at the prices that could potentially be available on a more liquid trading market. As a result of these factors, if our common stock is delisted from Nasdaq, the value and liquidity of our common stock, warrants and pre-funded warrants would likely be significantly adversely affected. A delisting of our common stock from Nasdaq could also adversely affect our ability to obtain financing for our operations and/or result in a loss of confidence by investors, employees and/or business partners.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds**

None.

**Item 3. Defaults Upon Senior Securities**

None.

**Item 4. Mine Safety Disclosures**

Not applicable.

**Item 5. Other Information**

During the six months ended June 30, 2025, none of the Company's directors or officers adopted or terminated any "Rule 10b5-1 trading arrangements" or any "non-Rule 10b5-1 trading arrangements," as each term is defined in Item 408 of Regulation S-K.

**Item 6. Exhibits**

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| | |
|:---|:---|
| **Exhibit**<br>**Number** | <br>**Exhibit Description** |
| 3.1 | [Certificate of Amendment to Certificate of Incorporation of Aditxt, Inc. (incorporated by reference to the Registrant's Current Report on Form 8-K fied on March 12, 2025).](http://www.sec.gov/Archives/edgar/data/1726711/000121390025023230/ea023395901ex3-1_aditxt.htm) |
| 31.1\* | [Certification of Principal Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](ea025259501ex31-1_aditxt.htm) |
| 31.2\* | [Certification of Principal Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](ea025259501ex31-2_aditxt.htm) |
| 32.1\*\* | [Certification of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ea025259501ex32-1_aditxt.htm) |
| 101.INS\* | Inline XBRL Instance Document. |
| 101.SCH\* | Inline XBRL Taxonomy Extension Schema Document. |
| 101.CAL\* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
| 101.DEF\* | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
| 101.LAB\* | Inline XBRL Taxonomy Extension Label Linkbase Document. |
| 101.PRE\* | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
| 104\* | Cover Page Interactive Data File (the cover page from the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 is formatted as Inline XBRL and contained in the Exhibit 101 XBRL Document Set). |

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\* Filed herewith.

\*\* Furnished herewith.

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

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| | | |
|:---|:---|:---|
|  | **Aditxt, Inc.** | **Aditxt, Inc.** |
| Date: August 14, 2025 | By: | /s/ Amro Albanna |
|  |  | Amro Albanna |
|  |  | Chief Executive Officer<br> (Principal Executive Officer) |
| Date: August 14, 2025 | By: | /s/ Thomas J. Farley |
|  |  | Thomas J. Farley |
|  |  | Chief Financial Officer<br> (Principal Financial and Accounting Officer) |

---

## Exhibit 31.1

**Exhibit 31.1**

**Certification of Chief Executive Officer of Aditxt, Inc.**

**Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**

I, Amro Albanna, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Aditxt, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: August 14, 2025 | */s/ Amro Albanna* |
|  | Amro Albanna |
|  | Chief Executive Officer<br> (Principal Executive Officer) |

---

## Exhibit 31.2

**Exhibit 31.2**

**Certification of Chief Financial Officer of Aditxt, Inc.**

**Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**

I, Thomas J. Farley, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Aditxt, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: August 14, 2025 | */s/ Thomas J. Farley* |
|  | Thomas J. Farley |
|  | Chief Financial Officer<br> (Principal Financial and Accounting Officer) |

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## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATIONS PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ENACTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of Aditxt, Inc. (the "Company") on Form 10-Q for the period ended June 30, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), each of Amro Albanna, Chief Executive Officer of the Company and Thomas J. Farley, Chief Financial Officer, certify, pursuant to 18 U.S.C. § 1350, as enacted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| August 14, 2025 | */s/ Amro Albanna* |
|  | Amro Albanna |
|  | Chief Executive Officer |
|  | (Principal Executive Officer) |
| August 14, 2025 | */s/ Thomas J. Farley* |
|  | Thomas J. Farley |
|  | Chief Financial Officer |
|  | (Principal Financial and Accounting Officer) |

---