# EDGAR Filing Document

**Accession Number:** 0001560258
**File Stem:** 0001641172-25-022432
**Filing Date:** 2025-8
**Character Count:** 400930
**Document Hash:** 02f7d5881d0c40fa708e63c28902bec9
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001641172-25-022432.hdr.sgml**: 20250806

**ACCESSION NUMBER**: 0001641172-25-022432

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 88

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250806

**DATE AS OF CHANGE**: 20250806

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** electroCore, Inc.
- **CENTRAL INDEX KEY:** 0001560258
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 203454976
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38538
- **FILM NUMBER:** 251189959

**BUSINESS ADDRESS:**
- **STREET 1:** 200 FORGE WAY
- **STREET 2:** SUITE 205
- **CITY:** ROCKAWAY
- **STATE:** NJ
- **ZIP:** 07866
- **BUSINESS PHONE:** 973-290-0097

**MAIL ADDRESS:**
- **STREET 1:** 200 FORGE WAY
- **STREET 2:** SUITE 205
- **CITY:** ROCKAWAY
- **STATE:** NJ
- **ZIP:** 07866

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ElectroCore, LLC
- **DATE OF NAME CHANGE:** 20121012

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

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q**

---

| | |
|:---|:---|
| **(Mark One)** | **(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**

☐ **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 001-38538**

**electroCore, Inc.**

**(Exact name of Registrant as specified in its charter)**

---

| | |
|:---|:---|
| **Delaware** | **20-3454976** |
| *(State or other jurisdiction of incorporation or organization)* | *(I.R.S. Employer Identification No.)* |

---

**200 Forge Way, Suite 205, Rockaway, NJ 07866**

*(Address of principal executive offices, including zip code)*

**(973) 290-0097**

*(Registrant's telephone number, including area code)*

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 | ECOR | Nasdaq Capital Market |

---

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 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 such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an 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 5, 2025, the registrant had 7,583,445 shares of common stock outstanding.

---

| | | |
|:---|:---|:---|
|  | **PART I. FINANCIAL INFORMATION** | Page Number |
|  | [Cautionary Note Regarding Forward-Looking Statements](#M_013) | 3 |
| Item 1. | Financial Statements |  |
|  | [Condensed Consolidated Balance Sheets as of June 30, 2025 (Unaudited) and December 31, 2024](#M_014) | 4 |
|  | [Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2025 and 2024 (Unaudited)](#M_015) | 5 |
|  | [Condensed Consolidated Statements of Comprehensive Loss for the Three and Six Months Ended June 30, 2025 and 2024 (Unaudited)](#M_016) | 6 |
|  | [Condensed Consolidated Statements of Equity for the Three and Six Months Ended June 30, 2025 and 2024 (Unaudited)](#M_017) | 7 |
|  | [Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024 (Unaudited)](#M_018) | 8 |
|  | [Notes to Condensed Consolidated Financial Statements (Unaudited)](#M_019) | 9 |
| Item 2. | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#m_001) | 17 |
| Item 3. | [Quantitative and Qualitative Disclosures About Market Risk](#m_002) | 23 |
| Item 4. | [Controls and Procedures](#m_003) | 23 |
|  | **PART II. OTHER INFORMATION** |  |
| Item 1. | [Legal Proceedings](#m_004) | 24 |
| Item 1A. | [Risk Factors](#m_005) | 24 |
| Item 2. | [Unregistered Sales of Equity Securities and Use of Proceeds](#m_006) | 24 |
| Item 3. | [Defaults Upon Senior Securities](#m_007) | 24 |
| Item 4. | [Mine Safety Disclosures](#m_008) | 24 |
| Item 5. | [Other Information](#m_009) | 25 |
| Item 6. | [Exhibits](#m_010) | 27 |
|  | [Signatures](#m_011) | 28 |

---

REFERENCES TO ELECTROCORE

In this Quarterly Report on Form 10-Q (this "Quarterly Report"), unless otherwise stated or the context otherwise requires, references to the "Company," "electroCore," "we," "us" and "our" refer to electroCore, Inc. a Delaware corporation and its subsidiaries.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q, or Quarterly Report, contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those discussed in the forward-looking statements. The statements contained in this Quarterly Report that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Forward-looking statements are often identified by the use of words such as, but not limited to, "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "intend," "may," "plan," "project," "seek," "should," "strategy," "target," "will," "would" and similar expressions or variations intended to identify forward-looking statements. These statements are based on the beliefs and assumptions of our management based on information currently available to them. Such forward-looking statements are subject to risks, uncertainties and other important factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to risks and uncertainties included in our Form 10-Qs, our annual report on Form 10-K for the year ended December 31, 2024 (the "Annual Report"), in our other filings with the U.S. Securities and Exchange Commission (the "SEC") or in materials incorporated by reference therein, including the information in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in such filings. Furthermore, any such forward-looking statements in this Quarterly Report speak only as of the date of this Quarterly Report. Except as required by law, we undertake no obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of such statements.

The electroCore logo, gammaCore, Truvaga, TAC-STIM, NeuroMetrix, Quell, names, logos, and other trademarks of electroCore, Inc. appearing in this Quarterly Report are the property of electroCore, Inc. All other trademarks, service marks and trade names in this Quarterly Report are the property of their respective owners. We have omitted the® and™ designations, as applicable, for the trademarks used in this Quarterly Report.

**ELECTROCORE, INC. AND SUBSIDIARIES**

Condensed Consolidated Balance Sheets

(unaudited)

(in thousands, except share data)

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2025** | **December 31,**<br>**2024** |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $3373 | $3450 |
| &nbsp;&nbsp;&nbsp;Restricted cash | 250 | 250 |
| &nbsp;&nbsp;&nbsp;Marketable securities | 3772 | 8519 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 813 | 1367 |
| &nbsp;&nbsp;&nbsp;Inventories | 1427 | 1676 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 922 | 1038 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 10557 | 16300 |
| Property and equipment, net | 197 | 158 |
| Operating lease right of use assets, net | 3663 | 3739 |
| Other assets, net | 142 | 274 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $14559 | $20471 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $2567 | $1827 |
| &nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 6646 | 6964 |
| &nbsp;&nbsp;&nbsp;Current portion of operating lease liabilities | 405 | 361 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 9618 | 9152 |
| Noncurrent liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities, noncurrent | 3828 | 3775 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 13446 | 12927 |
| Contingencies (see Note 14) |  |  |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;Common Stock, par value $0.001 per share; 500,000,000 shares authorized at June 30, 2025 and December 31, 2024; 7,466,425 shares issued and outstanding at June 30, 2025 and 6,650,854 shares issued and outstanding at December 31, 2024 | 7 | 7 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 185741 | 184513 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (184616) | (177090) |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive income | (19) | 114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 1113 | 7544 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $14559 | $20471 |

---

See accompanying notes to unaudited condensed consolidated financial statements.

**ELECTROCORE, INC. AND SUBSIDIARIES**

Condensed Consolidated Statements of Operations

(unaudited)

(in thousands, except per share data)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br> June 30,** | **Three Months Ended<br> June 30,** | &nbsp;&nbsp;&nbsp;&nbsp;**Six Months Ended**<br> **June 30,**  | &nbsp;&nbsp;&nbsp;&nbsp;**Six Months Ended**<br> **June 30,**  |
|  | **2025** | **2024** | &nbsp;&nbsp;&nbsp;&nbsp;**2025** | **2024** |
| &nbsp;&nbsp;&nbsp;Net sales | $7381 | $6139 | $14100 | $11582 |
| &nbsp;&nbsp;&nbsp;Cost of goods sold | 939 | 838 | 1952 | 1726 |
| Gross profit | 6442 | 5301 | 12148 | 9856 |
| Operating expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Research and development | 511 | 635 | 1153 | 1034 |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative | 9437 | 7257 | 18323 | 15262 |
| &nbsp;&nbsp;&nbsp;Total operating expenses | 9948 | 7892 | 19476 | 16296 |
| &nbsp;&nbsp;&nbsp;Loss from operations | (3506) | (2591) | (7328) | (6440) |
| &nbsp;&nbsp;&nbsp;Other (income) expense |  |  |  |  |
| **Interest and other income** | (68) | (55) | (151) | (280) |
| Other expense | 233 | 119 | 397 | 123 |
| Total other expense (income) | 165 | 64 | 246 | (157) |
| Loss before income taxes | (3671) | (2655) | (7574) | (6283) |
| Benefit from income taxes | - | - | 48 | 122 |
| Net loss | $(3671) | $(2655) | $(7526) | $(6161) |
| Net loss per share of common stock – Basic and Diluted | (0.44) | (0.38) | (0.91) | (0.90) |
| Weighted average common shares outstanding – Basic and Diluted (see Note 12) | 8316 | 7046 | 8302 | 6831 |

---

See accompanying notes to unaudited condensed consolidated financial statements.

**ELECTROCORE, INC. AND SUBSIDIARIES**

Condensed Consolidated Statements of Comprehensive Loss

(unaudited)

(in thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br> June 30,** | **Three Months Ended<br> June 30,** | **Six Months Ended<br> June 30,** | **Six Months Ended<br> June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;Net loss | (3671) | (2655) | (7526) | (6161) |
| &nbsp;&nbsp;&nbsp;Other comprehensive (loss) income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Foreign currency translation adjustment | (89) | 33 | (133) | 109 |
| &nbsp;&nbsp;&nbsp;Other comprehensive (loss) income | (89) | 33 | (133) | 109 |
| Comprehensive loss | $(3760) | $(2622) | $(7659) | $(6052) |

---

See accompanying notes to unaudited condensed consolidated financial statements.

**ELECTROCORE, INC. AND SUBSIDIARIES**

Condensed Consolidated Statements of Equity

For the Six Months Ended June 30, 2025 and 2024

(unaudited)

(in thousands)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Stockholders' Equity** | **Stockholders' Equity** | **Stockholders' Equity** | **Stockholders' Equity** | **Stockholders' Equity** | **Stockholders' Equity** |
|  | **Common<br> Stock** | **Common<br> Stock** |<br>**Additional<br> paid-in** | | | |
|  | **Shares** | **Amount** | **capital** |<br>**Accumulated**<br>**deficit** | **Accumulated**<br>**other<br> comprehensive**<br>**income (loss)** |<br>**Total<br> stockholders'**<br>**equity** |
| Balances as of January 1, 2025 | 6651 | $7 | $184513 | $(177090) | $114 | $7544 |
| &nbsp;&nbsp;&nbsp;Net loss |  |  |  | (3855) |  | (3855) |
| &nbsp;&nbsp;&nbsp;Other comprehensive income |  |  |  |  | (44) | (44) |
| &nbsp;&nbsp;&nbsp;Sale of common stock | 14 |  | 217 |  |  | 217 |
| &nbsp;&nbsp;&nbsp;Financing fees |  |  | (38) |  |  | (38) |
| &nbsp;&nbsp;&nbsp;Proceeds from the exercise of warrants | 725 |  | 1 |  |  | 1 |
| &nbsp;&nbsp;&nbsp;Issuance of stock related to employee compensation, net | 30 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Share based compensation |  |  | 540 |  |  | 540 |
| Balances as of March 31, 2025 | 7420 | 7 | $185233 | $(180945) | $70 | $4365 |
| &nbsp;&nbsp;&nbsp;Net loss |  |  |  | (3671) |  | (3671) |
| &nbsp;&nbsp;&nbsp;Other comprehensive income |  |  |  |  | (89) | (89) |
| &nbsp;&nbsp;&nbsp;Options exercised | 10 |  | 45 |  |  | 45 |
| &nbsp;&nbsp;&nbsp;Financing fees |  |  | (42) |  |  | (42) |
| &nbsp;&nbsp;&nbsp;Issuance of stock related to employee compensation, net | 36 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Share based compensation |  |  | 505 |  |  | 505 |
| Balances as of June 30, 2025 | 7466 | 7 | $185741 | $(184616) | $(19) | $1113 |
| Balances as of January 1, 2024 | 6003 | $6 | $172704 | $(165204) | $(64) | $7442 |
| &nbsp;&nbsp;&nbsp;Net loss |  |  |  | (3506) |  | (3506) |
| &nbsp;&nbsp;&nbsp;Other comprehensive income |  |  |  |  | 76 | 76 |
| &nbsp;&nbsp;&nbsp;Issuance of stock related to employee compensation plan, net of forfeitures | 3 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Share based compensation |  |  | 484 |  |  | 484 |
| Balances as of March 31, 2024 | 6006 | $6 | $173188 | $(168710) | $12 | $4496 |
| &nbsp;&nbsp;&nbsp;Net loss |  |  |  | (2655) |  | (2655) |
| &nbsp;&nbsp;&nbsp;Other comprehensive income |  |  |  |  | 33 | 33 |
| &nbsp;&nbsp;&nbsp;Sale of common stock and warrants | 438 |  | 9306 |  |  | 9306 |
| &nbsp;&nbsp;&nbsp;Financing Fees |  |  | (180) |  |  | (180) |
| &nbsp;&nbsp;&nbsp;Issuance of stock related to employee compensation plan, net of forfeitures | 3 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Share based compensation |  |  | 472 |  |  | 472 |
| Balances as of June 30, 2024 | 6447 | $6 | $182786 | $(171365) | $45 | $11472 |

---

See accompanying notes to unaudited condensed consolidated financial statements.

**ELECTROCORE, INC. AND SUBSIDIARIES**

Condensed Consolidated Statements of Cash Flows

(unaudited)

(in thousands)

---

| | | |
|:---|:---|:---|
|  | **Six months ended June 30,** | **Six months ended June 30,** |
|  | **2025** | **2024** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(7526) | $(6161) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 1045 | 956 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 276 | 407 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of right of use assets | 77 | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of operating lease liability | 250 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in provision for credit losses | 541 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 13 | 179 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | 249 | (93) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | (8) | 426 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 714 | 299 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | (428) | (417) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | (181) | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (4978) | (4330) |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Sale (purchase) of marketable securities | 4747 | (3928) |
| &nbsp;&nbsp;&nbsp;Purchase of equipment | (62) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) investing activities | 4685 | (3928) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Sale of common stock and warrants | 217 | 8300 |
| &nbsp;&nbsp;&nbsp;Financing fees | (80) | (180) |
| &nbsp;&nbsp;&nbsp;Proceeds from the exercise of options | 45 |  |
| &nbsp;&nbsp;&nbsp;Proceeds from exercise of warrants | 1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 183 | 8120 |
| Effect of changes in exchange rates on cash and cash equivalents | 33 | 109 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net decrease in cash and cash equivalents and restricted cash | (77) | (29) |
| Cash, cash equivalents, and restricted cash – beginning of period | 3700 | 10581 |
| Cash, cash equivalents, and restricted cash – end of period | $3623 | $10552 |
| Supplemental cash flows disclosures: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of state net operating losses | $48 | 122 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest paid | $5 | $7 |
| Supplemental schedule of noncash activity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable paid through issuance of common stock and warrants | $— | $1006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Right-of-use asset and liability | $— | $3316 |

---

See accompanying notes to unaudited condensed consolidated financial statements.

**ELECTROCORE, INC. AND SUBSIDIARIES**

Notes to Condensed Consolidated Financial Statements (unaudited)

**Note 1. The Company**

electroCore, Inc. and its subsidiaries ("electroCore" or the "Company") is a commercial stage bioelectronic technology company whose mission is to improve health and quality of life through innovative non-invasive bioelectronic technologies.

electroCore, headquartered in Rockaway, NJ, has three wholly owned subsidiaries: electroCore UK Ltd, electroCore Germany GmbH and NeuroMetrix, Inc. ("NURO"). The Company has paused operations in Germany, with sales into the country and the rest of Europe being managed by electroCore UK Ltd.

**Note 2. Summary of Significant Accounting Policies**

***(a)*** ***Basis of Presentation***

The accompanying condensed consolidated financial statements were prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") and with instructions to Form 10-Q and Article 10 of Regulation S-X under the Securities Exchange Act of 1934, as amended. In the opinion of management, the Company has made all necessary adjustments, which include normal recurring adjustments necessary for a fair presentation of the Company's condensed consolidated financial position and results of operations for the interim periods presented. Certain information and disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended December 31, 2024, included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 12, 2025. The results for the three and six months ended June 30, 2025, are not necessarily indicative of the results to be expected for a full year, any other interim periods or any future year or period.

***(b)*** ***Principles of Consolidation***

The accompanying condensed consolidated financial statements include the accounts of electroCore and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

***(c)*** ***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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include revenue, licensed products and loss contingencies.

***(d)*** ***Cash, Cash Equivalents and Restricted Cash***

The following table provides a reconciliation of cash, cash equivalents and restricted cash to the balance reflected on the Condensed Consolidated Statement of Cash Flows at June 30, 2025 and December 31, 2024:

---

| | | |
|:---|:---|:---|
| (in thousands) | **June 30,**<br> **2025** | **December 31,**<br> **2024** |
| Cash and cash equivalents | $3373 | $3450 |
| Restricted cash | 250 | 250 |
| &nbsp;&nbsp;&nbsp;Total cash, cash equivalents and restricted cash | $3623 | $3700 |

---

As of June 30, 2025, cash equivalents represented funds held in an interest-bearing demand deposit account, U.S. treasury bills, and a money market account.

The Company's restricted cash consists of cash that the Company is contractually obligated to maintain in accordance with the terms of its corporate credit card arrangement with Citibank, N.A.

***(***e) ***Marketable Securities***

Marketable securities are carried at fair value, with unrealized gains and losses reported as accumulated other comprehensive income, except for losses from impairments which are determined to be other than temporary. Realized gains and losses and declines in value judged to be other-than-temporary are included in the determination of net loss and are included in interest and other income net. Fair values are based on quoted market prices at the reporting date. Interest and dividends on available-for-sale securities are included in Interest and other income. As of June 30, 2025, marketable securities amounted to $3.8 million and consist of U.S. treasury bills. The Company held $8.5 million of marketable securities at December 31, 2024.

**ELECTROCORE, INC. AND SUBSIDIARIES**

Notes to Condensed Consolidated Financial Statements (unaudited)

***(f)*** ***Recent Accounting Standards Pronouncements***

In December 2023, the FASB issued Accounting Standards Update (ASU) No. 2023-09, *Income Taxes (Topic 740)*, *Improvements to Income Tax Disclosures* which will require companies to make additional income tax disclosures. The pronouncement is effective for annual filings for the year ended December 31, 2025. The Company is still assessing the impact of the adoption of this standard but does not expect it to have a material impact on its results of operations, financial position or cash flows.

On November 2024, the FASB issued Accounting Standards Update (ASU) No. 2024-03, *Income Statement (Topic 220): Reporting Comprehensive Income - Expense Disaggregation Disclosures, Disaggregation of Income Statement Expenses*, which requires public companies to disclose, in interim and annual reporting periods, additional information about certain expenses in the financial statements. The amendments in this pronouncement will be effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted and is effective on either a prospective basis or retrospective basis. The Company is currently assessing the potential impacts of adoption on its consolidated financial statements and related disclosures.

**Note 3. Liquidity, Significant Risks and Uncertainties**

*Liquidity*

The Company has experienced significant net losses, and it expects to continue to incur net losses for the near future as it works to increase market acceptance of its prescription (Rx) products and general wellness and human performance products. The Company has never been profitable and has incurred net losses and negative cash used in operations each year since its inception. The Company incurred net losses of $7.5 million and $6.2 million and used cash in its operations of $5.0 million and $4.3 million for the six months ended June 30, 2025, respectively.

The Company has historically funded its operations from the sale of its securities. During the six months ended June 30, 2025, the Company received net proceeds of approximately $0.2 million from such sales and as of June 30, 2025, the Company's cash, cash equivalents, restricted cash and marketable securities totaled $7.4 million ("Cash Position").

On July 24, 2025, our Form S-3 registration statement (File No. 333-284477), or the 2025 Shelf Registration Statement, was declared effective by the SEC. The 2025 Shelf Registration Statement relates to the potential offering and issuance from time to time of common stock, preferred stock, warrants, rights, debt securities and units, up to an aggregate amount of $100.0 million. The proposed maximum offering price per unit and the proposed maximum aggregate offering price per class of security in any future offering under the 2025 Shelf Registration Statement will be determined from time to time by us in connection with the issuance by us of the securities registered under the 2025 Shelf Registration Statement. As of the date of this Quarterly Report, we have $100.0 million remaining for potential issuance under the 2025 Shelf Registration Statement (including $19.8 million under the Sales Agreement (as defined below)). If we raise additional funds by issuing equity or debt securities, either through the sale of securities pursuant to a registration statement or by other means, our existing stockholders may experience dilution, and the new equity or debt securities may have rights, preferences and privileges senior to those of our existing stockholders.

On November 29, 2024, we entered into an At The Market Offering Agreement (the "Sales Agreement") with H.C. Wainwright & Co., LLC ("Wainwright"), whereby the Company may offer and sell shares of its common stock from time to time having an aggregate offering price of up to $20 million by any method deemed to be an "at-the-market" offering ("ATM") as defined in Rule 415 of the Securities Act, or any other method specified in the Sales Agreement.

On August 4, 2025 (the "LSA Closing Date"), we, and our wholly owned subsidiary, NURO, each as borrowers, entered into a Loan and Security Agreement (the "Loan and Security Agreement"), with Avenue Venture Opportunities Fund II, L.P. ("Avenue"), as administrative agent and collateral agent, and as lender, that is secured by a lien on substantially all of our assets, including a negative pledge on intellectual property, subject to limited exceptions, pursuant to the Loan and Security Agreement. The Loan and Security Agreement provides for term loans in an aggregate principal amount of up to $12.0 million (the "Loan Amount") to be delivered in two tranches (the "Term Loans"). The tranches consist of (i) a term loan advanced to the Company on the LSA Closing Date in an aggregate principal amount of $7.5 million ("Tranche 1"), and (ii) subject to the achievement of certain performance milestones set forth in the Loan and Security Agreement, a right of the Company to request that Avenue make additional term loan advances to the Company in an aggregate principal amount of up to $4.5 million ("Tranche 2"), which right expires on December 31, 2025.

In the second half of 2025, we intend to continue to make targeted investments in sales and marketing to continue driving commercial activities. We have historically funded our operations from the sale of our common stock, and most recently the convertible debt financing with Avenue, and may continue to do so through utilization of the at-the-market facility or other equity or debt transactions if needed. As of the date of this Quarterly Report, the Company had approximately $19.8 million of common stock remaining available for issuance under the Sales Agreement pursuant to the 2025 Shelf Registration Statement.

The Company's expected cash requirements for the next 12 months from the date these financial statements are issued and beyond are largely based on the commercial success of its products. Based on its current assessment, the Company believes its cash, cash equivalents, restricted cash, and marketable securities, plus the net proceeds from and expected cash flow from operations and access to capital through use of the ATM and Tranche 2 of the Term Loan, will enable it to fund its operating expenses and capital expenditure requirements, as currently planned, for at least the next 12 months from the date the accompanying financial statements are issued. There remain significant risks and uncertainties regarding the Company's business, financial condition and results of operations. The Company's future capital requirements are difficult to forecast and will depend on many factors that are out of its control. If the Company is unable to achieve its planned operating results or maintain sufficient financial resources, including through potential positive cash flow from operations or supplemental access to third-party debt, equity or hybrid capital, its business, financial condition and results of operations may be materially and adversely affected.

*Concentration of Revenue Risks* 

The Company earns a significant amount of its revenue in the United States from the United States Department of Veterans Affairs and United State Department of Defense, or VA, pursuant to its qualifying contract under the Federal Supply Schedule, or FSS, and open market sales to individual VA facilities. For the three months ended June 30, 2025 and 2024, sales to the VA accounted for 71.8% and 74.5% of net sales, respectively. For the six months ended June 30, 2025 and 2024, sales to the VA accounted for 71.1% and 72.9% of net sales, respectively.

For the three and six months ended June 30, 2025 and 2024, Lovell Government Services, or Lovell, accounted for more than 10% of our VA net sales. During the three and six months ended June 30, 2025, sales associated with no single facility accounted for more than 10% of the total VA net sales. One facility accounted for more than 10% of the total VA net sales during the three and six months ended June 30, 2024. During the three and six months ended June 30, 2025 and 2024, one facility accounted for more than 10% of net sales from the United Kingdom National Health Service ("NHS").

*Foreign Currency Exchange*

The Company has foreign currency exchange risks related to revenue and operating expenses in currencies other than the local currencies in which it operates. The Company is exposed to currency risk from the potential changes in the functional currency values of its assets, liabilities, and cash flows denominated in foreign currencies.

**ELECTROCORE, INC. AND SUBSIDIARIES**

Notes to Condensed Consolidated Financial Statements (unaudited)

**Note 4. Revenue**

The following tables present product net sales disaggregated by Channel and Geographic Market (in thousands):

---

| | | |
|:---|:---|:---|
| | **Three months ended June 30,** | **Three months ended June 30,** |
| <br>**Channel:** | **2025** | **2024** |
| Rx gammaCore – VA | $5185 | $4572 |
| Rx gammaCore - U.S. Commercial | 394 | 476 |
| Rx Quell – VA | 114 |  |
| Quell – U.S. Commercial | 48 |  |
| Outside the United States | 465 | 464 |
| Truvaga | 994 | 572 |
| Total before TAC-STIM | 7200 | 6084 |
| TAC-STIM | 181 | 55 |
| Total Net Sales | $7381 | $6139 |

---

---

| | | |
|:---|:---|:---|
| | **Six months ended June 30,** | **Six months ended June 30,** |
| <br>**Channel:** | **2025** | **2024** |
| Rx gammaCore – VA | $9906 | $8447 |
| Rx gammaCore - U.S. Commercial | 683 | 909 |
| Rx Quell – VA | 114 |  |
| Quell – U.S. Commercial | 48 |  |
| Outside the United States | 978 | 913 |
| Truvaga | 2100 | 957 |
| Total before TAC-STIM | 13829 | 11226 |
| TAC-STIM | 271 | 356 |
| Total Net Sales | $14100 | $11582 |

---

---

| | | |
|:---|:---|:---|
| **Geographic Market:** | **Three months ended June 30,** | **Three months ended June 30,** |
| **Product revenue** | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;United States | $6895 | $5675 |
| &nbsp;&nbsp;&nbsp;United Kingdom | 433 | 427 |
| &nbsp;&nbsp;&nbsp;Other | 36 | 22 |
| **License revenue** |  |  |
| &nbsp;&nbsp;&nbsp;Japan | 17 | 15 |
| Total Net Sales | $7381 | $6139 |

---

---

| | | |
|:---|:---|:---|
| **Geographic Market:** | **Six months ended June 30,** | **Six months ended June 30,** |
| **Product revenue** | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;United States | $13101 | $10669 |
| &nbsp;&nbsp;&nbsp;United Kingdom | 884 | 812 |
| &nbsp;&nbsp;&nbsp;Other | 83 | 67 |
| **License revenue** |  |  |
| &nbsp;&nbsp;&nbsp;Japan | 32 | 34 |
| Total Net Sales | $14100 | $11582 |

---

The Company generally invoices the customer and recognizes revenue once its performance obligations are satisfied, at which point payment is unconditional. Agreed upon payment terms with customers are within 30 days of shipment. Accordingly, contracts with customers do not include a significant financing component.

**Note 5. Cash, Cash Equivalents, Restricted Cash and Marketable Securities**

The following tables summarize the Company's cash, cash equivalents, restricted cash and marketable securities as of June 30, 2025 and December 31, 2024.

**<u>As of June 30, 2025</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Amortized Cost** | **Unrealized Gain** | **Unrealized (Loss)** | **Fair Value** |
| Cash, cash equivalents and restricted cash | $3623 | $— | $— | $3623 |
| Marketable Securities: |  |  |  |  |
| U.S. Treasury Bills | 3772 |  |  | 3772 |
| Total marketable securities | 3772 |  |  | 3772 |
| Total cash, cash equivalents, restricted cash and marketable securities | $7395 | $— | $— | $7395 |

---

**<u>As of December 31, 2024</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Amortized Cost** | **Unrealized Gain** | **Unrealized (Loss)** | **Fair Value** |
| Cash, cash equivalents and restricted cash | $3700 | $— | $— | $3700 |
| Marketable Securities: |  |  |  |  |
| U.S. Treasury Bills | 8519 |  |  | 8519 |
| Total marketable securities | 8519 |  |  | 8519 |
| Total cash, cash equivalents, restricted cash and marketable securities | $12219 | $— | $— | $12219 |

---

**ELECTROCORE, INC. AND SUBSIDIARIES**

Notes to Condensed Consolidated Financial Statements (unaudited)

**Note 6. Fair Value Measurements**

Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three levels of the fair value hierarchy:

● Level 1—Quoted prices in active markets for identical assets or liabilities.

● Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.

● Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.

A summary of the assets and liabilities carried at fair value in accordance with the hierarchy defined above is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Fair Value Hierarchy** | **Fair Value Hierarchy** | **Fair Value Hierarchy** |
| <br>**June 30, 2025** |<br>**Total** | **Level 1** | **Level 2** | **Level 3** |
| **Assets** | | | | |
| Cash, cash equivalents and restricted cash | $3623 | $3623 | $— | $— |
| Marketable Securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. treasury bills | 3772 | 3772 |  |  |
| Total cash, cash equivalents, restricted cash and marketable securities | $7395 | $7395 | $— | $— |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Fair Value Hierarchy** | **Fair Value Hierarchy** | **Fair Value Hierarchy** |
| <br>**December 31, 2024** |<br>**Total** | **Level 1** | **Level 2** | **Level 3** |
| **Assets** | | | | |
| Cash, cash equivalents and restricted cash | $3700 | $3700 | $— | $— |
| Marketable Securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. treasury bills | 8519 | 8519 |  |  |
| Total cash, cash equivalents and restricted cash | $12219 | $12219 | $— | $— |

---

As of June 30, 2025, the Company's Marketable securities in the amount of $3.8 million were carried at fair value in accordance with Level 1 as described above. As of June 30, 2025 and December 31, 2024, the Company had no financial assets or liabilities that required valuation in accordance with the levels described above. The Company recognizes transfers between levels of the fair value hierarchy as of the end of the reporting period. There were no transfers within the hierarchy during the three and six months ended June 30, 2025, and year ended December 31, 2024. The carrying amount of the Company's receivables and payables approximate their fair value due to their maturity.

**Note 7. Inventories**

As of June 30, 2025 and December 31, 2024, inventories consisted of the following:

---

| | | |
|:---|:---|:---|
| **(in thousands)** | **June 30, 2025** | **December 31, 2024** |
| Raw materials | $1010 | $923 |
| Work in process | 28 | 193 |
| Finished goods | 389 | 560 |
| &nbsp;&nbsp;&nbsp;Total inventories | $1427 | $1676 |

---

The reserve for obsolete inventory was $0.5 million and $0.6 million as of June 30, 2025 and December 31, 2024, respectively. The Company records charges for obsolete inventory in cost of goods sold. Inventory classified under the category "Work in process" consists of prefabricated assembled product.

**Note 8. Leases**

For the three and six months ended June 30, 2025, the Company recognized lease expenses of approximately $178,000 and $356,000, respectively. For the three and six months ended June 30, 2024, the Company recognized lease expenses of approximately $61,000 and $99,000, respectively. This expense does not include non-lease components associated with the lease agreements as the Company elected not to include such charges as part of the lease expense.

On February 6, 2024, the Company entered into The First Amendment to Lease Agreement (the "Rockaway Amendment") to extend its Rockaway, New Jersey lease for an additional 10 years. The Rockaway Amendment was effective May 1, 2024, and expires on July 31, 2034, with a tenant option to renew for an additional five years. The increase in the term of the lease for the existing leased property was accounted for as a lease modification, therefore, the associated operating lease right of use assets and operating lease liabilities for the existing space were remeasured as of February 6, 2024. The Rockaway Amendment also includes the expansion of leased property from 13,643 square feet to 22,557 square feet. The Company has accounted for the expansion space as an increase in lease right of use assets effective with the Rockaway Amendment commencement date of June 1, 2024.

On May 1, 2025, the Company completed the acquisition of NURO, pursuant to the terms of the Agreement and Plan of Merger dated as of December 17, 2024 (the "Merger Agreement"), with NURO surviving as a wholly-owned subsidiary of the Company. On July 14, 2025, NURO entered into the Amendment to Lease #1 to a lease with Cummings Properties, LLC providing for early termination of NURO's Woburn, Massachusetts lease on July 30, 2025, which otherwise would have expired on September 15, 2025.

**ELECTROCORE, INC. AND SUBSIDIARIES**

Notes to Condensed Consolidated Financial Statements (unaudited)

Supplemental Balance Sheet Information for Operating Leases:

---

| | | |
|:---|:---|:---|
| **(in thousands)** | **June 30,**<br> **2025** | **December 31,**<br> **2024** |
| **Operating leases:** |  |  |
| &nbsp;&nbsp;&nbsp;Operating lease right of use assets | $3663 | $3739 |
| **Operating lease liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Current portion of operating lease liabilities | 405 | 361 |
| &nbsp;&nbsp;&nbsp;Noncurrent operating lease liabilities | 3828 | 3775 |
| Total operating lease liabilities | $4233 | $4136 |
| Weighted average remaining lease term (in years) | 14.0 | 14.5 |
| Weighted average discount rate | 13.5% | 13.5% |

---

Future lease payments as of June 30, 2025:

---

| | |
|:---|:---|
| **(in thousands)** | |
| Remainder of 2025 | $187 |
| 2026 | 530 |
| 2027 | 625 |
| 2028 | 649 |
| 2029 | 663 |
| 2030 and thereafter | 7736 |
| &nbsp;&nbsp;&nbsp;Total future lease payments | 10390 |
| Less: Amounts representing interest | (6157) |
| &nbsp;&nbsp;&nbsp;Total | $4233 |

---

**Note 9. Accrued Expenses and Other Current Liabilities**

Accrued expenses and other current liabilities as of June 30, 2025 and December 31, 2024 consisted of the following:

---

| | | |
|:---|:---|:---|
| **(in thousands)** | **June 30, 2025** | **December 31, 2024** |
| Accrued professional fees | $900 | $598 |
| Accrued bonuses and incentive compensation | 1856 | 2886 |
| Accrued litigation legal fees | 1155 | 1163 |
| Accrued insurance expense |  | 205 |
| Accrued research and development expenses | 655 | 655 |
| Accrued vacation and other employee related expenses | 811 | 781 |
| Accrued tax expenses | 512 | 382 |
| Deferred revenue | 68 | 78 |
| Accrued acquisition related expenses | 349 |  |
| Other | 340 | 216 |
|  | $6646 | $6964 |

---

*Finance and Security Agreement*

On July 2, 2024, the Company entered into a Commercial Insurance Premium Finance and Security Agreement (the "2024 Agreement"). The 2024 Agreement provides for a single borrowing of approximately $493,000 with a ten-month term and an annual interest rate of 8.75%. The proceeds from this transaction were used to partially fund the premiums due under certain of the Company's insurance policies. The amounts payable are secured by the Company's rights under such policies. Beginning July 2024, the Company began paying monthly installments of approximately $51,000.

During the three and six months ended June 30, 2025, the Company recognized $4,500 and $9,500 in aggregate interest expense related to the Company's finance and security agreements, respectively. During the three and six months ended June 30, 2024, the Company recognized $4,300 and $8,500 in aggregate interest expense related to the Company's finance and security agreements, respectively.

On July 7, 2025, the Company and First Insurance Funding entered into a Commercial Insurance Premium Finance Agreement (the "2025 Finance Agreement"). The 2025 Finance Agreement provides for a single borrowing of approximately $452,000 with a ten-month term and an annual interest rate of 6.55%. The proceeds from this transaction were used to partially fund the premiums due under certain of the Company's insurance policies. The amounts payable are secured by the Company's rights under such policies. Beginning July 2025, the Company began paying monthly installments of approximately $45,000.

**Note 10. Shareholders' Equity** 

*At-the-Market Facility*

On November 29, 2024, we entered into the Sales Agreement with Wainwright. Under the Sales Agreement, the Company may offer and sell shares of its common stock, par value $0.001 per share, from time to time having an aggregate offering price of up to $20 million during the term of the Sales Agreement through Wainwright, acting as sales agent. The Company intends to use the net proceeds from any offering pursuant to the Sales Agreement to continue to fund sales and marketing, working capital and for other general corporate purposes. During the six months ended June 30, 2025 the company sold 14,265 shares of common stock for gross proceeds of approximately $217,000. This amount has been offset by financing fees of approximately $80,000.

**ELECTROCORE, INC. AND SUBSIDIARIES**

Notes to Condensed Consolidated Financial Statements (unaudited)

*Stock Purchase Warrants*

The following table presents a summary of stock purchase warrants outstanding as of June 30, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Number of Warrants<br> (in thousands)** | **Weighted Average Exercise Price** | **Weighted Average Remaining Contractual Term<br> (Years)** | **Aggregate Intrinsic Value (in thousands)** |
| Outstanding, January 1, 2025 | 1497 | $5.31 | 4.2 | $16489 |
| Stock purchase warrants granted |  |  |  |  |
| Exercised |  |  |  |  |
| Expired |  |  |  |  |
| Outstanding, June 30, 2025 | 1497 | $5.31 | 3.7 | $832 |
| Exercisable, June 30, 2025 | 1497 | $5.31 | 3.7 | $832 |

---

A total of 883,433 pre-funded warrants were excluded from this table. During the six months ended June 30, 2025 investors exercised 725,000 pre-funded warrants.

**Note 11. Net Loss Per Share** 

Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding adjusted to give effect to potentially dilutive securities. Due to their nominal exercise price of $0.001 per share, 883,433 and 1,608,433 pre-funded warrants are considered common stock equivalents during the three and six months ended June 30, 2025 and 2024, respectively, and are included in weighted average shares outstanding in the accompanying condensed consolidated statement of operations as of the applicable purchase date. Stock unit awards, stock options, and warrants (other than the pre-funded warrants) have not been included in the diluted loss per share calculation as their inclusion would have had an anti-dilutive effect.

The potential common stock equivalents that have been excluded from the computation of diluted loss per share consist of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three and Six months ended June 30,** | **Three and Six months ended June 30,** | **Three and Six months ended June 30,** | **Three and Six months ended June 30,** |
| **(in thousands)** | **2025** | **2025** | **2024** | **2024** |
| Stock options |  | 530 |  | 498 |
| Stock units |  | 453 |  | 422 |
| Stock purchase warrants | | 1,497 | | 1,640 |
|  | | 2,480 | | 2,560 |

---

**Note 12. Income Taxes**

The Company may be eligible, from time to time, to receive cash from the sale of its net operating losses under New Jersey's Department of the Treasury - Division of Taxation NOL Transfer Program. For the six months ended June 30, 2025 and 2024 the Company received net cash payments of $48,000 and $122,000, respectively from the sale of its New Jersey state net operating losses.

**Note 13. Stock Based Compensation** 

The following table presents a summary of outstanding stock options as of June 30, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Number of Options (in thousands)** | **Weighted Average Exercise Price** | **Weighted Average Remaining Contractual Term (Years)** | **Aggregate Intrinsic Value<br> (in thousands)** |
| Outstanding, January 1, 2025 | 548 | $31.39 | 6.7 | $510 |
| Exercised | (10) | 4.50 |  |  |
| Cancelled | (4) | 22.97 |  |  |
| Expired | (4) | 33.60 |  |  |
| Outstanding, June 30, 2025 | 530 | 31.94 | 6.5 | 144 |
| Exercisable, June 30, 2025 | 428 | $38.33 | 6.1 | $78 |

---

The intrinsic value is calculated as the difference between the fair market value at June 30, 2025 and the exercise price per share of the stock option. The options granted to employees generally vest over a three year period.

**ELECTROCORE, INC. AND SUBSIDIARIES**

Notes to Condensed Consolidated Financial Statements (unaudited)

The following table presents a summary of activity related to restricted and deferred stock units ("Stock Units") granted during the six months ended June 30, 2025:

---

| | | |
|:---|:---|:---|
|  | **Number of**<br> **Shares**<br> **(in thousands)** | **Weighted**<br> **Average**<br> **Grant Date**<br> **Fair Value** |
| Outstanding, January 1, 2025 | 459 | $6.86 |
| Granted | 84 | 15.80 |
| Vested and delivered | (66) | 7.07 |
| Cancelled | (24) | 7.23 |
| Outstanding, June 30, 2025 | 453 | $8.46 |

---

In general, Stock Units granted to employees vest over two to four-year periods.

Immediately following the Company's annual meeting of stockholders, the Company generally grants each non-employee director an equity award that vests over a 12-month period. Upon a non-employee director's initial appointment or election to the board of directors, the Company grants such non-employee director an equity award subject to vesting as determined by the board of directors.

The Company recognized stock compensation expense for its equity awards as follows:

---

| | | |
|:---|:---|:---|
|  | **Three months ended June 30,** | **Three months ended June 30,** |
| **(in thousands)** | **2025** | **2024** |
| Selling, general and administrative | $482 | $440 |
| Research and development | 8 | 21 |
| Cost of goods sold | 15 | 11 |
| Total expense | $505 | $472 |

---

---

| | | |
|:---|:---|:---|
|  | **Six months ended June 30,** | **Six months ended June 30,** |
| **(in thousands)** | **2025** | **2024** |
| Selling, general and administrative | $982 | $879 |
| Research and development | 31 | 56 |
| Cost of goods sold | 32 | 21 |
| Total expense | $1045 | $956 |

---

Total unrecognized compensation cost related to unvested awards as of June 30, 2025 was $2.1 million and is expected to be recognized over the next two years.

**Note 14. Commitments and Contingencies** 

The Company may be a party to various legal proceedings and claims arising out of the ordinary course of its business. Although the final results of all such matters and claims cannot be predicted with certainty, the Company currently believes that there are no current proceedings or claims pending against it the ultimate resolution of which would have a material adverse effect on its financial condition or results of operations. However, should the Company fail to prevail in any legal matter or should several legal matters be resolved against the Company in the same reporting period, such matters could have a material adverse effect on the Company's operating results and cash flows for that particular period. In all cases, at each reporting period, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under *ASC 450*, "Contingencies." Legal costs are expensed as incurred.

***2025 CVR Agreement***

 ****

On May 1, 2025 (the "Closing Date"), the Company completed its previously announced acquisition of NURO (following consummation of the Merger, the "Surviving Corporation"), pursuant to the terms of the Merger Agreement by and among the Company, NURO, and Nexus Merger Sub Inc., a Delaware corporation and a wholly owned subsidiary of the Company ("Merger Sub").

Pursuant to the Merger Agreement, on the Closing Date, Merger Sub merged with and into NURO, with NURO surviving as a wholly-owned subsidiary of the Company (the "Merger").

Immediately prior to the effective time (the "Effective Time") of the Merger, the Company entered into a contingent value rights agreement (the "CVR Agreement") with a rights agent (the "Rights Agent"), pursuant to which the holders (each, a "Holder") of (i) shares of common stock, par value $0.0001 per share, of NURO (the "NURO Common Stock") outstanding immediately prior to the Effective Time, outstanding awards of restricted stock with respect to shares of NURO Common Stock, outstanding at the Effective Time, and each NURO restricted stock unit outstanding at the Effective Time, as well as all issued and outstanding shares of NURO's preferred stock, par value $0.001 per share, outstanding at the Effective Time, and each stock option granted by NURO to purchase NURO Common Stock, outstanding and unvested immediately prior to the Effective Time, if and when applicable under the terms of the Merger Agreement, may become entitled to contingent cash payments (each, a "Contingent Payment") that net of, minus certain transaction expenses, will equal (1) 8% of the Quell Net Sales (as defined in the CVR Agreement) during the first 12-month period after the Closing Date, in an amount up to $500,000 (the "First Quell Net Sales Payment"), but if 8% of the Quell Net Sales during such period is less than $25,000, the First Quell Net Sales Payment shall be zero; (2) 6% of the Quell Net Sales during the second 12-month period after the Closing Date, an amount up to $500,000 minus the amount of the First Quell Net Sales Payment (the "Second Quell Net Sales Payment"), but if 6% of the Quell Net Sales during such second period is less than $25,000, the Second Quell Net Sales Payment shall be zero; and (3) the amounts received by the Company after the Effective Time pursuant to any Disposition Agreement (as defined in the CVR Agreement) signed prior to the Effective Time with respect to NURO's DPNCheck® Business.

**ELECTROCORE, INC. AND SUBSIDIARIES**

Notes to Condensed Consolidated Financial Statements (unaudited)

Under the CVR Agreement, the Rights Agent has, and Holders of at least 20% of the CVRs then-outstanding have, certain rights to audit and enforcement on behalf of all Holders of the CVRs. The Company shall cause NURO to use commercially reasonable efforts to consummate transactions contemplated by any Disposition Agreement, as such efforts are further described in the CVR Agreement.

The CVR Agreement has a term commencing on the Effective Date and ending on the earlier of (a) December 31 of the calendar year in which Company shall have caused to be paid to the Holders pursuant to the terms of the CVR Agreement all Distributions (as defined in the CVR Agreement) with respect to all payments (including any contingent payments) contemplated to be made by the applicable buyer pursuant to any Disposition Agreement, and (b) December 31, 2030.

See "Note 17 – Acquisition" for additional information about the Merger.

**Note 15. Related Party Transactions** 

In 2023, an executive of the Company co-founded the Vagus Nerve Society, an academic society dedicated to the ongoing education and training of scientists and clinicians and the power of the vagus nerve and its application in a broad spectrum of health-related conditions. During the three and six months ended June 30, 2025, the Company incurred aggregate expenses of $30,000 and $90,000, respectively, for unrestricted and directed educational grants to the Vagus Nerve Society.

**Note 16. Segment Reporting**

Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision-maker (CODM), or decision-making group, in deciding how to allocate resources and in assessing performance. electroCore is a commercial stage bioelectronic technology company whose mission is to improve health and quality of life through innovative non-invasive bioelectronic technologies. The Company views its operations and manages its business as one operating segment: Bioelectronic Innovations. The accounting policies of the Bioelectronic Innovations segment are the same as those described in Note 2. Summary of Significant Accounting Policies.

Our CODM is our Chief Executive Officer. The CODM uses loss from operations, as reported on our Consolidated Statements of Operations, in evaluating the performance of the Bioelectronic Innovations segment and in determining how to allocate resources to the Company as a whole, The CODM does not review assets in evaluating the results of the Bioelectronic Innovations segment, and therefore, such information is not presented below.

The following table provides the non-GAAP operating financial results of the Bioelectronic Innovations segment:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br> June 30,** | **Three Months Ended<br> June 30,** | **Six Months Ended<br> June 30,** | **Six Months Ended<br> June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;Net sales \* | $7381 | $6139 | $14100 | $11582 |
| &nbsp;&nbsp;&nbsp;Cost of goods sold | 939 | 838 | 1952 | 1726 |
| Gross profit | 6442 | 5301 | 12148 | 9856 |
| Operating expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Research and development | 511 | 635 | 1153 | 1034 |
| &nbsp;&nbsp;&nbsp;General and administrative | 4552 | 3542 | 8885 | 7512 |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 4885 | 3715 | 9438 | 7750 |
| &nbsp;&nbsp;&nbsp;Total operating expenses | 9948 | 7892 | 19476 | 16296 |
| &nbsp;&nbsp;&nbsp;Loss from operations | (3506) | (2591) | (7328) | (6440) |
| &nbsp;&nbsp;&nbsp;Other (income) expense |  |  |  |  |
| **Interest and other income** | (68) | (55) | (151) | (280) |
| Other expense | 233 | 119 | 397 | 123 |
| Total other expense (income) | 165 | 64 | 246 | (157) |
| Loss before income taxes | (3671) | (2655) | (7574) | (6283) |
| Benefit from income taxes | - | - | 48 | 122 |
| Net loss | $(3671) | $(2655) | $(7526) | $(6161) |

---

**\*** See Note 4 Revenue for geographical and disaggregation information.

**Note 17. Acquisitions**

On the Closing Date, the Company completed its previously announced acquisition of NURO, pursuant to the terms of the Merger Agreement by and among the Company, NURO, and Nexus Merger Sub Inc., a Delaware corporation and a wholly owned subsidiary of the Company.

Pursuant to the Merger Agreement, on the Closing Date, Merger Sub merged with and into NURO, with NURO surviving as a wholly-owned subsidiary of the Company.

See "Note 14 – Commitments and Contingencies" for additional information.

**Note 18. Legal Proceedings**

***UAB Pulsetto v. electroCore, Inc.***

On June 11, 2025, UAB Pulsetto ("Pulsetto") filed a declaratory judgment action against the Company in the United States District Court for the District of New Jersey, captioned *UAB Pulsetto v. electroCore, Inc., Civ. No. 25-10036 (D.N.J.),* asserting that its non-invasive vagus nerve stimulation product does not infringe the Company's U.S. Patent No. 11,446,491 (the "491 Patent").

On July 16, 2025, the Company filed a responsive pleading, answering the complaint and asserting counterclaims, that Pulsetto's non-invasive vagus nerve stimulation product infringes the '491 Patent, as well as the Company's U.S. Patent Nos. 8,948,873, 9,339,653, 10,874,857, 8,843,210, 9,242,092, 11,623,078, and 10,441,780, as well as claims that Pulsetto's commercial conduct has infringed and continues to infringe the Company's Truvaga™ and gammaCore® trademarks, and committed acts of false advertising and unfair competition in violation of state and federal law. The lawsuit is in its early stages as discovery has not begun.

**Note 19. Subsequent Events** 

See "Note 3 – Liquidity, Significant Risks and Uncertainties" and "Item 5. Other Information" for information regarding the Loan and Security Agreement entered into with Avenue on August 4, 2025, and related transactions.

See "Note 18 – Legal Proceedings" for information regarding the Pulsetto action.

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

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL**

**CONDITION AND RESULTS OF OPERATIONS**

*You should read this section in conjunction with our unaudited interim condensed consolidated financial statements and related notes included in this Quarterly Report and our Quarterly Report for the period ended March 31, 2025,and our audited consolidated financial statements and related notes thereto and management's discussion and analysis of financial condition and results of operations for the year ended December 31, 2024 included in our Annual Report. As discussed in the section titled "Cautionary Note Regarding Forward-Looking Statements," the following discussion and analysis contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified below, and those under the caption "Risk Factors" in the aforementioned Annual Report and this Quarterly Report.*

We are a commercial stage bioelectronic technology company whose mission is to improve health and quality of life through innovative non-invasive bioelectronic technologies. The Company's two leading prescription products, gammaCore non-invasive vagus nerve stimulation ("nVNS") and Quell neurostimulator ("Quell"), treat chronic pain syndromes through non-invasive neuromodulation technology Additionally, the Company commercializes its Truvaga products, handheld, personal use nVNS products, utilizing bioelectronic technologies, to promote general wellness and human performance.

nVNS, a form of bioelectronic technology, modulates neurotransmitters through its effects on both the peripheral and central nervous systems. Our nVNS treatment is delivered through a proprietary high-frequency burst waveform that safely and comfortably passes through the skin and stimulates therapeutically relevant fibers in the vagus nerve. Various scientific publications suggest that nVNS works through a variety of mechanistic pathways including the modulation of neurotransmitters.

Historically, vagus nerve stimulation or VNS, required an invasive surgical procedure to implant a costly medical device. This has generally limited VNS from being used by anyone other than the most severe patients. Our non-invasive bioelectronic nVNS technologies are self-administered and intended for regular or intermittent use over many years.

Our capabilities include product development, regulatory affairs and compliance, sales and marketing, product testing, electromechanical assembly, fulfillment, and customer support. We derive revenues from the sale of products in the United States and select overseas markets. We have two principal product categories:

● Handheld, personal use bioelectronic therapies for the management and treatment of certain medical conditions such as primary headache; and

● Handheld, personal use consumer products utilizing bioelectronic technologies to promote general wellness and human performance.

We believe our bioelectronic technologies may be used in the future to effectively treat additional medical conditions.

Our goal is to be a leader in non-invasive neuromodulation to deliver better health. To achieve this, we offer multiple propositions:

● Prescription gammaCore bioelectronic therapy for the treatment of certain prescription U.S. Food and Drug Administration ("FDA") cleared medical conditions such as primary headache;

● Prescription Quell Fibromyalgia authorized to treat the symptoms of fibromyalgia;

● Truvaga for the support of general health and wellbeing; and

● TAC-STIM for human performance.

Our flagship gammaCore Sapphire is a prescription medical device using our bioelectronic therapy that is FDA cleared for a variety of primary headache conditions. gammaCore is available by prescription only and Sapphire is a portable, reusable, rechargeable and reloadable personal use option for patients to use at home or on the go. Prescriptions are written by a health care provider and dispensed from a specialty pharmacy, through the patient's healthcare system, or shipped directly to certain patients in the United States from our facility in Rockaway, NJ. After the initial prescription is filled, access to additional therapy can be refilled for certain of our gammaCore products through the input of a prescription-only authorization.

We offer two versions of our bioelectronic technology to support general health and wellbeing. Truvaga 350 is a personal use consumer electronics general wellness product and Truvaga Plus, which was launched in April 2024, is our next generation, app-enabled general wellness product. Neither product requires a prescription, and are available direct-to-consumer from electroCore at www.truvaga.com or through online retailers.

The TAC-STIM handset is a form of nVNS for human performance and has been developed in collaboration with the United States Department of Defense Biotech Optimized for Operational Solutions and Tactics, or BOOST program. TAC-STIM handsets are available as a Commercial Off the Shelf (COtS) solution to professional organizations and are the subject of ongoing research and evaluation within the United States Air Force Special Operations Command, the United States Army Special Operations Command and at the United States Air Force Research Laboratory.

Truvaga and TAC-STIM are intended for general wellness in compliance with the FDA guidance document entitled "General Wellness: Policy for Low-Risk Devices; Guidance for Industry and FDA Staff, issued on September 27, 2019." Truvaga and TAC-STIM handsets are not intended to diagnose, treat, cure, or prevent any disease or medical condition.

In 2021, Quell received Breakthrough Device Designation from the FDA for a fibromyalgia indication. A pivotal double-blind, randomized, sham-controlled clinical study of Quell Fibromyalgia was completed, and a, FDA 510(k) de novo marketing authorization was obtained from the FDA in 2022.

See "Item 1 – Business – De Novo Classification Process" and "Item 1.A – Risk Factors" of our Annual Report for additional information on the FDA's 510(k) de novo classification and marketing authorization processes.

Quell Fibromyalgia is a prescription medical device sold in the United States and indicated for use as an aid for reducing the symptoms of fibromyalgia in adults with high pain sensitivity. Quell is a wearable neuromodulation technology for chronic pain, has been refined with feedback from over 200,000 chronic pain patients and is protected by over 20 U.S. utility patents. Patients control and personalize the technology with a mobile phone app, and their utilization of the devices and certain clinical metrics may be tracked in the Quell Health Cloud. Prescriptions for Quell Fibromyalgia are written by a health care provider and dispensed from a specialty pharmacy, through the patient's healthcare system, or shipped directly to certain patients in the United States from our facility in Rockaway, NJ. After the initial prescription is filled, access to additional electrodes can be refilled without the need of a prescription. There is also a small legacy customer base utilizing the Quell Relief over-the-counter product for broader pain.

Our two largest customers by revenue are the United States Department of Veterans Affairs and United States Department of Defense, or VA, and the United Kingdom National Health Service, or NHS, utilizing our FDA cleared and CE marked product, gammaCore. We began offering Quell Fibromyalgia to our VA customers in May 2025.

Sales to the VA comprised 71.8% and 71.1% of our revenue during the three and six months ended June 30, 2025, respectively. The majority of our 2024 sales were made pursuant to our qualifying contract under the Federal Supply Schedule, or FSS, which was secured by us in December 2018 (the "Original FSS Contract"), as well as open market sales to individual facilities within the government channel. In March 2025, we entered into a new FSS contract which became effective on June 15, 2025, and runs through June 14, 2030.

In August 2023, we signed a non-exclusive distribution agreement with Lovell providing Lovell the right to list and distribute certain gammaCore products into the federal market. Lovell is a Service-Disabled Veteran-Owned Small Business (SDVOSB) offering medical and pharmaceutical goods and services to federal healthcare providers. Listing products with Lovell is intended to streamline the sales process to a variety of government procurement channels through Lovell's compliance with contracting regulations and its provision of logistical solutions connected directly into government contracting portals, all of which are intended to help government agencies meet their SDVOSB procurement goals. Customers for these vehicles are federal healthcare systems such as the Veterans Health Administration (VHA, which includes the VA), the Military Health System (MHS), and Indian Health Services (IHS), which we believe serve up to approximately 21 million patients combined. In May 2025, we added Quell Fibromyalgia to the Lovell contracting platform.

Between November 2023 and January 2024, certain gammaCore products were added to the FSS, the VA Distribution and Pricing Agreement (DAPA), GSA Advantage, and Defense Logistics Agency's ECAT system procurement portals through the Lovell contract vehicles, enabling the purchase of gammaCore products within the government channel and throughout the federal markets, including, but not limited to, the VA. The gammaCore products offered through Lovell provide government customers with similar product configuration options to those currently sold through our existing FSS contract, new FSS contract and open market sales made directly to individual VA facilities. We expect an increasing portion of our 2025 sales will be made pursuant to the distribution agreement with Lovell and its contract vehicles as well as through our new FSS contract, and our sales function in this channel is comprised of employees and an increasing number of independent contractors.

Sales under the UK Med Tech Funding Mandate, or MTFM, for cluster headache in the UK comprised 4.9% and 5.1% of our revenue during the three and six months ended June 30, 2025, respectively. We plan on continuing use of this program. In 2023, NHS granted a two-year extension in which our prescription gammaCore therapy will continue to be listed in the NHS catalog. This extension is through March 17, 2026 with an option for us to extend an additional two years. In 2025, we expect NICE to review the guidance document and any changes in recommendation or pricing may adversely impact our ability to work with NHS England on the MTFM program and could have an adverse impact on our financial results. We continue to utilize distribution partners to commercialize our nVNS technology in selected territories outside the United States and United Kingdom.

We believe there may be significant opportunities beyond these two areas. Specifically, we believe there may be a large commercial opportunity for our gammaCore and Quell bioelectronic therapies with additional insurance covered lives, cash pay, physician dispense, and direct-to-consumer approaches, along with wellness and human performance propositions through our Truvaga and TAC-STIM handsets. Therefore, we will continue our investments to expand our efforts in these channels and markets in 2025.

On May 1, 2025, we acquired NURO. NURO is a commercial stage healthcare company that develops and commercializes neurotechnology devices to address unmet needs in the chronic pain market through its Quell® platform: a wearable, app and cloud-enabled neuromodulation platform that is indicated for the treatment of fibromyalgia symptoms (Quell Fibromyalgia) and lower-extremity chronic pain (Quell 2.0). The transaction closed on May 1, 2025. The transaction excluded NURO's DPNCheck® technology and business, which was divested by NURO prior to closing of the transaction.

We face a variety of challenges and risks that we will need to address and manage as we pursue our strategies, including our ability to develop and retain an effective sales force, achieve market acceptance of our gammaCore medical device among clinicians, patients, and third-party payers, expand the use of our medical devices to additional therapeutic indications, and to develop our nascent wellness and human performance businesses.

As we continue to pursue opportunities in both U.S. and select international markets, we remain subject to evolving global economic conditions, including uncertainties related to international trade policies, tariffs, and supply chain dynamics. Uncertainties and changes in trade regulations, tariff structures, or logistical constraints could influence the cost, availability, or timing of materials and components used in our manufacturing and assembly processes. We intend to monitor these developments and are actively implementing contingency plans, including alternative sourcing strategies and supplier diversification, to support supply chain continuity, maintain operational efficiency, and help mitigate potential future impacts.

We launched a direct-to-consumer wellness offering, Truvaga, and we remain subject to risks associated with the commercialization of our Truvaga product offering, including those associated with selling Truvaga through ecommerce marketplaces. Selling products through large, well established ecommerce marketplaces presents several risks including inventory management challenges, broader competition, potential account suspensions, and the risk of losing control over brand identity, value perception, and customer relationships. While we intend to monitor commercialization efforts through these marketplaces, there can be no assurance that we can respond adequately to reviews on public forums, or at all on third-party forums, which may cause a loss of control over our brand identity, value perception and customer relationships, and any inability to respond adequately may negatively impact our operating results.

Because of the numerous risks and uncertainties associated with our commercialization efforts, as well as research and product development activities, there may be uncertainty regarding our ability to achieve or maintain profitability. If we fail to become profitable or are unable to sustain profitability, then we may be unable to continue our operations at planned levels and be forced to reduce or terminate our operations.

Our expected cash requirements for the next 12 months and beyond are based on the commercial success of our products and our ability to control operating expenses. There are significant risks and uncertainties as to our ability to achieve these operating results. Due to these risks and uncertainties, we may need to reduce our activities significantly more than our current operating plan and cash flow projections assume in order to fund operations for the next 12 months. There can be no assurance that we will have sufficient cash flow and liquidity to fund our planned activities, which could force us to significantly reduce or curtail our activities and, ultimately potentially cease operations. See also "Liquidity Outlook."

**Critical Accounting Estimates**

The preparation of our financial statements is in accordance with accounting principles generally accepted in the United States of America, or GAAP, which require us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and other related disclosures. While we believe our estimates, assumptions and judgments are reasonable, they are based on information presently available. Actual results may differ significantly from these estimates due to changes in judgments, assumptions and conditions as a result of unforeseen events or otherwise, which could have a material impact on our financial position and results of operations.

We consider an accounting estimate to be critical if: (i) the accounting estimate requires us to make assumptions about matters that were highly uncertain at the time the accounting estimate was made, and (ii) changes in the estimate that are reasonably likely to occur from period to period or use of different estimates that we reasonably could have used in the current period, would have a material impact on our financial condition or results of operations. The critical accounting estimates, that we believe have the greatest potential impact on the condensed consolidated financial statements are disclosed in the section titled Critical Accounting Policies and Estimates in Part II of our Annual Report.

**Results of Operations**

***Comparison of the three months ended June 30, 2025 to the three months ended June 30, 2024***

The following table sets forth amounts from our condensed consolidated statements of operations for the three months ended June 30, 2025 and 2024:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the three months<br> ended June 30,** | **For the three months<br> ended June 30,** | |
|  | **2025** | **2024** |<br>**Change** |
| ***(in thousands)*** |  |  |  |
| **Consolidated statements of operations:** |  |  |  |
| Net sales | $7381 | $6139 | $1242 |
| Cost of goods sold | 939 | 838 | 101 |
| &nbsp;&nbsp;&nbsp;Gross profit | 6442 | 5301 | 1141 |
| &nbsp;&nbsp;&nbsp;*Gross margin* | *87 %* | *86 %* |  |
| Operating expenses |  |  |  |
| &nbsp;&nbsp;&nbsp;Research and development | 511 | 635 | (124) |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative | 9437 | 7257 | 2180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 9948 | 7892 | 2056 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from operations | (3506) | (2591) | (915) |
| Other (income) expense |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest and other income | (68) | (55) | (13) |
| &nbsp;&nbsp;&nbsp;Other expense | 233 | 119 | 114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense (income) | 165 | 64 | (101) |
| Loss before income taxes | (3671) | (2655) | (1016) |
| Benefit from income taxes | - | - | - |
| &nbsp;&nbsp;&nbsp;Net loss | $(3671) | $(2655) | $(1016) |

---

 

*Net Sales* 

Net sales for the three months ended June 30, 2025 increased 20%, as compared to the three months ended June 30, 2024. The increase of $1.2 million is due to an increase in net sales of prescription products sold into the VA and revenue from the sales of our nonprescription general wellness Truvaga and TAC-STIM products. We expect that the majority of our remaining 2025 fiscal year revenue will continue to come from the prescription products sold into the VA and the Truvaga direct-to-consumer product offering. See the above Overview for discussion regarding our FSS contract with the VA.

The following table sets forth our product net sales:

---

| | | |
|:---|:---|:---|
| ***(in thousands)*** | **Three months ended June 30,** | **Three months ended June 30,** |
| **Product** | **2025** | **2024** |
| Rx gammaCore - VA | $5185 | $4572 |
| Rx gammaCore - U.S. Commercial | 394 | 476 |
| Rx Quell - VA | 114 |  |
| Quell – U.S. Commercial | 48 |  |
| Outside the United States | 465 | 464 |
| Truvaga | 994 | 572 |
| **Total before TAC-STIM** | **7200** | **6084** |
| TAC-STIM | 181 | 55 |
| **Total Revenue** | $**7381** | $**6139** |

---

*Gross Profit*

Gross profit increased by $1.1 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. Gross margin was 87% and 86% for the three months ended June 30, 2025 and 2024, respectively. The increase in gross profit is attributable to the increased net sales and product mix. Gross profit and gross margin for the remainder of 2025 will be largely dependent on revenue levels, product mix, and any changes in the estimated useful lives of licensed devices.

*Research and Development*

 

Research and development expense in the second quarter of 2025 was $0.5 million, as compared to $0.6 million in the second quarter of 2024. This decrease was primarily due to reduced development costs in the three months ended June 30, 2025, as compared to the three months ended June 30, 2024. For the remainder of 2025, we expect our research and development expense to be higher than the comparable periods in 2024.

*Selling, General and Administrative*

Selling, general and administrative expense of $9.4 million for the three months ended June 30, 2025 increased by $2.1 million, or 30%, as compared to $7.3 million for the previous year period. This increase was primarily due to our greater investment in selling and marketing costs consistent with our increase in sales, $548,000 of bad debt expense associated with a TAC-STIM receivable, increased expenses associated with professional fees, and increased rent expense associated with the lease expansion. For the remainder of 2025, we plan on continuing to make targeted investments in sales and marketing to support our commercial efforts, particularly around sales and marketing efforts across all major U.S. channels.

 

*Other Expense (Income)*

Total other expense was $165,000 for the three months ended June 30, 2025, which consisted primarily of non-recurring expenses, including professional fees in connection with the NURO acquisition, as compared to total other expense of $64,000 for the three months ended June 30, 2024, which consisted primarily of a one-time expense associated with termination of an agreement.

***Comparison of the six months ended June 30, 2025 to the six months ended June 30, 2024***

The following table sets forth amounts from our condensed consolidated statements of operations for the six months ended June 30, 2025 and 2024:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the six months<br> ended June 30,** | **For the six months<br> ended June 30,** | |
|  | **2025** | **2024** |<br>**Change** |
| ***(in thousands)*** |  |  |  |
| **Consolidated statements of operations:** |  |  |  |
| Net sales | $14100 | $11582 | $2518 |
| Cost of goods sold | 1952 | 1726 | 226 |
| &nbsp;&nbsp;&nbsp;Gross profit | 12148 | 9856 | 2292 |
| &nbsp;&nbsp;&nbsp;*Gross margin* | *86 %* | *85 %* |  |
| Operating expenses |  |  |  |
| &nbsp;&nbsp;&nbsp;Research and development | 1153 | 1034 | 119 |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative | 18323 | 15262 | 3061 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 19476 | 16296 | 3180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from operations | (7328) | (6440) | (888) |
| Other (income) expense |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest and other income | (151) | (280) | 129 |
| &nbsp;&nbsp;&nbsp;Other expense | 397 | 123 | 274 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense (income) | 246 | (157) | 403 |
| Loss before income taxes | (7574) | (6283) | (1291) |
| Benefit from income taxes | 48 | 122 | (74) |
| &nbsp;&nbsp;&nbsp;Net loss | $(7526) | $(6161) | $(1365) |

---

*Net Sales* 

Net sales for the six months ended June 30, 2025 increased 22% as compared to the six months ended June 30, 2024. The increase of $2.5 million is due to an increase in net sales of prescription products sold into the VA and outside the United States, and revenue from the sales of our nonprescription general wellness Truvaga products. We expect that the majority of our remaining 2025 fiscal year revenue will continue to come from the prescription products sold into the VA and the Truvaga direct-to-consumer product offering. See the above Overview for discussion regarding our FSS contract with the VA.

The following table sets forth our product net sales:

---

| | | |
|:---|:---|:---|
| ***(in thousands)*** | **Six months ended June 30,** | **Six months ended June 30,** |
| **Product** | **2025** | **2024** |
| Rx gammaCore - VA | $9906 | $8447 |
| Rx gammaCore - U.S. Commercial | 683 | 909 |
| Rx Quell – V.A. | 114 |  |
| Quell – U.S. Commercial | 48 |  |
| Outside the United States | 978 | 913 |
| Truvaga | 2100 | 957 |
| **Total before TAC-STIM** | **13829** | **11226** |
| TAC-STIM | 271 | 356 |
| **Total Revenue** | $**14100** | $**11582** |

---

*Gross Profit*

Gross profit increased by $2.3 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. Gross margin was 86% and 85% for the six months ended June 30, 2025 and 2024, respectively. The increase in gross profit is attributable to the increased net sales and product mix. Gross profit and gross margin for the remainder of 2025 will be largely dependent on revenue levels, product mix, and any changes in the estimated useful lives of licensed devices.

*Research and Development*

 

Research and development expense for the six months ended June 30, 2025 was $1.2 million, as compared to $1.0 million during the six months ended June 30, 2024. This increase was primarily due to an increase in headcount and certain clinical trial activities in the first quarter of 2025 as compared to the first quarter of 2024. For the remainder of 2025, we expect our research and development expense to be higher than the comparable periods in 2024.

*Selling, General and Administrative*

Selling, general and administrative expense of $18.3 million for the six months ended June 30, 2025 increased by $3.0 million, or 20%, as compared to $15.3 million for the previous year period. This increase was primarily due to our greater investment in selling and marketing costs consistent with our increase in sales, an increase in separation costs associated with select headcount reductions, bad debt expense associated with a TAC-STIM receivable, increased expenses associated with professional fees, and increased rent expense associated with the lease expansion. For the remainder of 2025, we plan on continuing to make targeted investments in sales and marketing to support our commercial efforts, particularly around sales and marketing efforts across all major U.S. channels.

 

*Other Expense (Income)*

Total other expense was $246,000 for the six months ended June 30, 2025, which consisted primarily of non-recurring expenses, including professional fees in connection with the NURO acquisition, as compared to total other income of $157,000 for the six months ended June 30, 2024, which consisted primarily of interest income.

*Benefit from Income Taxes*

We may be eligible, from time to time, to receive cash from the sale of our net operating losses under New Jersey's Department of the Treasury - Division of Taxation NOL Transfer Program. For the six months ended June 30, 2025 and 2024 the Company received net cash payments of $48,000 and $122,000, respectively, from the sale of its New Jersey state net operating losses.

***Cash Flows***

The following table sets forth the significant sources and uses of cash for the periods noted below:

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| | | |
|:---|:---|:---|
|  | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2025** | **2024** |
| *(in thousands)* |  |  |
| **Net cash (used in) provided by** |  |  |
| &nbsp;&nbsp;&nbsp;Operating activities | $(4978) | $(4330) |
| &nbsp;&nbsp;&nbsp;Investing activities | $4685 | $(3928) |
| &nbsp;&nbsp;&nbsp;Financing activities | $183 | $8120 |

---

Operating Activities

Net cash used in operating activities was $5.0 million and $4.3 million for the six months ended June 30, 2025 and 2024, respectively. This increase is primarily due to the decrease in our net loss adjusted for non-cash expense items and certain working capital changes consisting primarily of decreases in accrued expenses and operating lease liabilities and increases in inventories and prepaid expenses and other assets.

*Investing Activities*

Net cash provided by investing activities was $4.7 million and $3.9 million for the six months ended June 30, 2025 and 2024, respectively. This increase is primarily due to proceeds from the sale of marketable securities.

*Financing Activities*

During the six months ended June 30, 2025, net cash provided by financing activities was $0.2 million attributable to utilization of our at-the-market facility pursuant to the Sales Agreement. During the six months ended June 30, 2024, net cash provided by financing activities was $8.1 million which was attributable to the entering into a registered direct offering and concurrent private placements, which closed on June 5, 2024.

**Liquidity Outlook**

We have experienced significant net losses, and we expect to continue to incur net losses for the near future as we work to increase market acceptance of our gammaCore therapy and general wellness and human performance products. We have never been profitable and we have incurred net losses and negative cash used in operations in each year since our inception. We incurred net losses of $7.5 million and $6.2 million and used cash in our operations of $5.0 million and $4.3 million for the six months ended June 30, 2025 and 2024, respectively.

We have historically funded our operations from the sale of our securities. During the six months ended June 30, 2025, we received net proceeds of approximately $0.2 million from such sales and as of June 30, 2025, our cash, cash equivalents, restricted cash and marketable securities totaled $7.4 million.

On November 29, 2024, we entered into an At The Market Offering Agreement (the "Sales Agreement") with H.C. Wainwright & Co., LLC ("Wainwright"), whereby the Company may offer and sell shares of its common stock from time to time having an aggregate offering price of up to $20 million by any method deemed to be an "at-the-market" offering as defined in Rule 415 of the Securities Act, or any other method specified in the Sales Agreement. During the six months ended June 30, 2025, the Company sold 14,265 shares of its common stock at a weighted average price of $15.20 per share, net of issuance costs for $0.2 million in net proceeds, pursuant to the Sales Agreement.

On August 4, 2025, we, and our wholly owned subsidiary, NURO, each as borrowers, entered into the Loan and Security Agreement with Avenue that is secured by a lien on substantially all of our assets, including a negative pledge on intellectual property, subject to limited exceptions, pursuant to the Loan and Security Agreement. The Loan and Security Agreement provides for term loans in an aggregate principal amount of up to $12.0 million (the "Loan Amount") to be delivered in two tranches (the "Term Loans"). The tranches consist of (i) a term loan advanced to the Company on August 4, 2025 in an aggregate principal amount of $7.5 million ("Tranche 1"), and (ii) subject to the achievement of certain performance milestones set forth in the Loan and Security Agreement, a right of the Company to request that Avenue make additional term loan advances to the Company in an aggregate principal amount of up to $4.5 million ("Tranche 2") which right expires on December 31, 2025.

In 2025, we intend to continue to make targeted investments in sales and marketing to continue driving commercial activities. We have historically funded our operations from the sale of our common stock, and most recently the convertible debt financing with Avenue, and may continue to do so through utilization of the at-the-market facility or other equity or debt transactions if needed. As of the date of this Quarterly Report, the Company had approximately $19.8 million of common stock remaining available for issuance under the Sales Agreement.

The Company's expected cash requirements for the next 12 months from the date these financial statements are issued and beyond are largely based on the commercial success of its products. Based on its current assessment, the Company believes its cash, cash equivalents, restricted cash, and marketable securities, plus the net proceeds from Tranche 1 of the Term Loan, and expected cash flow from operations and access to capital through the use of the ATM and Tranche 2 of the Term Loan will enable it to fund its operating expenses and capital expenditure requirements, as currently planned, for at least the next 12 months from the date the accompanying financial statements are issued. There remain significant risks and uncertainties regarding the Company's business, financial condition and results of operations. The Company's future capital requirements are difficult to forecast and will depend on many factors that are out of its control. If the Company is unable to achieve its planned operating results or maintain sufficient financial resources, including through potential positive cash flow from operations or supplemental access to third-party debt, equity or hybrid capital, its business, financial condition and results of operations may be materially and adversely affected.

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

We develop our products in the United States and sell those products into several countries. As a result, our financial results could be affected by factors such as changes in foreign currency exchange rates or weak economic conditions in foreign markets. Most of our sales in UK are denominated in British Pound Sterling and our license agreement with Teijin Limited is denominated in Japanese Yen. As our sales in currencies other than the U.S. dollar increase, our exposure to foreign currency fluctuations may increase. In addition, changes in exchange rates also may affect the end-user prices of our products compared to those of our foreign competitors, who may be selling their products based on local currency pricing. These factors may make our products less competitive in some countries.

If the U.S. dollar uniformly increased or decreased in strength by 10% relative to the foreign currencies in which our sales were denominated, our net income would have correspondingly increased or decreased by an immaterial amount for the three and six months ended June 30, 2025.

Our exposure to market interest rate risk is confined to our cash and cash equivalents and marketable securities. The goals of our investment policy are preservation of capital, fulfillment of liquidity needs and fiduciary control of cash and investments. We also seek to maximize income from our investments without assuming significant risk. To achieve our goals, we may maintain a portfolio of cash equivalents and investments in a variety of securities of high credit quality. The securities in our investment portfolio, if any, are not leveraged, are classified as available for sale and are, due to their very short-term nature, subject to minimal interest rate risk. We currently do not hedge interest rate exposure. Because of the short-term maturities of our cash equivalents, we do not believe that an increase in market rates would have any material negative impact on interest income recognized in our statement of operations. We have no investments denominated in foreign currencies and therefore our investments are not subject to foreign currency exchange risk. We contract with investigational sites, suppliers and other vendors in Europe and internationally. In addition, our license agreement requires payments to us to be denominated in Japanese Yen. We are subject to fluctuations in foreign currency rates in connection with these agreements. We do not hedge our foreign currency exchange rate risk.

All of the potential changes noted above are based on sensitivity analyses performed on our financial position as of June 30, 2025.

**Item 4. Controls and Procedures** 

*Evaluation of Disclosure Controls and Procedures*

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the rules and forms, and that such information is accumulated and communicated to us, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decision making regarding required disclosure. In designing and evaluating our disclosure controls and procedures, we recognize that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, as ours are designed to do, and we apply our judgment in evaluating whether the benefits of the controls and procedures that we adopt outweigh their costs.

As required by Rule 13a-15(b) and 15d-15(f) of the Exchange Act, an evaluation as of June 30, 2025 was conducted under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act). Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures, as of June 30, 2025 were effective for the purposes stated above.

*Changes in Internal Control over Financial Reporting*

 

There was no change in our internal control over financial reporting as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, that occurred during the six months 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** 

The information set forth in Note 18. *Legal Proceedings* of the condensed consolidated financial statements included in this Quarterly Report is incorporated here by reference to this Part II Item 1.

**Item 1A.**

**RISK FACTORS**

You should carefully consider the risk factors included in Item 1A. of the Annual Report, in addition to the following risk factors, and the other information in this Quarterly Report, including the section of this Quarterly Report titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our financial statements and related notes. If any of the events described in the Annual Report, the following risk factors and the risks described elsewhere in this Quarterly Report occur, our business, operating results and financial condition could be seriously harmed. This Quarterly Report also contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in the forward-looking statements as a result of factors that are described in the Annual Report, below and elsewhere in this Quarterly Report.

***The terms of our Loan and Security Agreement with Avenue Venture Opportunities Fund II, L.P. require us to meet certain operating covenants and place certain restrictions on our operating and financial flexibility. If we raise additional capital through debt financing, the terms of any new debt could further restrict our ability to operate our business.***

 ****

On August 4, 2025, we, and our wholly owned subsidiary, NURO, each as borrowers, entered the Loan and Security Agreement with Avenue, as administrative agent and collateral agent, and as lender, that is secured by a lien on substantially all of our assets, including a negative pledge on intellectual property, subject to limited exceptions, pursuant to the Loan and Security Agreement.

The Loan and Security Agreement contains customary affirmative and negative covenants and events of default. We could in the future incur additional indebtedness beyond our borrowings under the Loan and Security Agreement. If we raise any additional debt financing, the terms of such additional debt could further restrict our operating and financial flexibility. These restrictions may include, among other things, limitations on the incurrence of additional debt and specific restrictions on the use of our assets, as well as prohibitions on our ability to create liens, pay dividends, redeem capital stock or make investments. If we default under the terms of the Loan and Security Agreement, Avenue may accelerate all of our repayment obligations and take control of our pledged assets, potentially requiring us to renegotiate our agreement on terms less favorable to us or to immediately cease operations. Further, if we were to be liquidated, Avenue's rights to repayment would be senior to the rights of the holders of our common stock. Avenue could declare an event of default upon the occurrence of any circumstance or circumstances that could reasonably be expected to have a Material Adverse Effect (as defined under the Loan and Security Agreement). Any declaration by Avenue of an event of default could significantly harm our business and prospects and could cause the price of our common stock to decline.

Our existing or future debt could have significant adverse consequences, including:

● requiring us to dedicate a substantial portion of cash flow from operations or cash on hand to the payment of interest on, and principal of, our debt, which will reduce the amounts available to fund working capital, capital expenditures, product development efforts, and other general corporate purposes;

● subjecting us to restrictive covenants that may reduce our ability to take certain corporate actions or obtain further debt or equity financing; and

● limiting our flexibility in planning for, or reacting to, changes in our business and our industry; and placing us at a competitive disadvantage compared to our competitors that have less debt or better debt servicing options.

In order to satisfy our current and future debt service obligations, we will be required to raise funds from external sources. We may be unable to arrange for additional financing to pay the amounts due under our existing debt. Funds from external sources may not be available on acceptable terms, if at all. Our failure to satisfy our current and future debt obligations could adversely affect our financial condition and results of operations.

***Risks of doing business through e-commerce marketplaces.***

 ****

We have recently launched a direct-to-consumer wellness offering, Truvaga, and we remain subject to risks associated with the commercialization of our Truvaga product offering, including those associated with selling Truvaga through e-commerce marketplaces. Selling products through large, well established e-commerce marketplaces presents several risks including inventory management challenges, broader competition, potential account suspensions, and the risk of losing control over brand identity, value perception, and customer relationships. While we intend to monitor commercialization efforts through these marketplaces, there can be no assurance that we can respond adequately to reviews on public forums that may cause a loss of control over our brand identity, value perception and customer relationships, and any inability to respond adequately may negatively impact our financial results. In addition, our business may be adversely affected if online marketplaces, such as has been the case recently with Amazon, remove our products on the basis that they are classified as medical devices requiring FDA clearance or registration. Such removal can significantly disrupt our sales channels, reduce product visibility, and impair revenue generation, particularly if online sales constitute a substantial portion of our sales and marketing strategy. While we intend to appeal Amazon's decision, the appeals process is uncertain, time-consuming, and may not result in reinstatement. Prolonged or permanent removal could lead to inventory write-downs, loss of market share, reputational harm, and increased compliance costs. Additionally, similar actions by other e-commerce platforms or heightened regulatory scrutiny could further restrict market access, adversely impacting our business, financial condition, and results of operations.

***Our failure to meet Nasdaq's continued listing standards could result in a delisting of our common stock, which could negatively impact the market price and liquidity of our common stock and our ability to access the capital markets.***

 ****

Pursuant to Nasdaq Listing Rule 5550(b), in order to maintain our listing on Nasdaq, we are required to continue to meet one of the following continued listing standards: (i) net income from continuing operations (in the most recently completed fiscal year or in two of the three most recently completed fiscal years) of at least $500,000 (the "Net Income Standard"); (ii) market value of listed securities of at least $35 million (the "Market Value Standard"); or (iii) stockholders' equity of at least $2.5 million (the "Equity Standard").

As of June 30, 2025, our stockholders' equity was less than $2.5 million and therefore less than the Equity Standard. As a result, if Nasdaq determines that we do not meet either of the Net Income Standard or the Market Value Standard, we may receive a deficiency letter from Nasdaq. Upon receipt of such deficiency letter, we will have a period of time to resolve such deficiency and, if necessary, will have the opportunity to present a plan to regain compliance.

There can be no assurance that Nasdaq will accept our plan to regain compliance or that we will meet the Equity Standard during any compliance period, if one is provided to us. If our common stock is de-listed from Nasdaq, it will have material negative impact on the actual and potential liquidity of our securities, as well as material negative impact on our ability to raise future capital.

If, for any reason, Nasdaq should delist our common stock from trading on its exchange and we are unable to obtain listing on another national securities exchange or take action to restore our compliance with the Nasdaq continued listing requirements, a reduction in some or all of the following may occur, each of which could have a material adverse effect on our stockholders:

● the liquidity of our common stock;

● the market price of our common stock;

● our ability to obtain financing for the continuation of our operations;

● the number of institutional and general investors that will consider investing in our common stock;

● the number of investors in general that will consider investing in our common stock;

● the number of market makers in our common stock;

● the availability of information concerning the trading prices and volume of our common stock; and

● the number of broker-dealers willing to execute trades in shares of our common stock.

**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**

(a) ***Avenue Loan and Security Agreement***

On the LSA Closing Date, we, and our wholly owned subsidiary, NURO, each as borrowers, entered into the Loan and Security Agreement with Avenue as administrative agent and collateral agent, and as lender.

*Amount*. The Loan and Security Agreement provides for term loans in an aggregate principal amount of up to $12.0 million (the "Loan Amount") to be delivered in two tranches (the "Term Loans"). The tranches consist of (i) a term loan advanced to the Company on the LSA Closing Date in an aggregate principal amount of $7.5 million ("Tranche 1"), and (ii) subject to the achievement of certain performance milestones set forth in the Loan and Security Agreement, a right of the Company to request that Avenue make additional term loan advances to the Company in an aggregate principal amount of up to $4.5 million ("Tranche 2"), which right expires on December 31, 2025. The Company intends to use the proceeds of the Term Loans for working capital and general corporate purposes.

*Maturity*. The Term Loans mature on August 1, 2029 (the "Maturity Date").

*Interest Rate and Amortization*. The principal balance of the Term Loans bears interest at a variable rate per annum equal to the greater of (i) the sum of 5.0% and the prime rate as reported in *The Wall Street Journal*, provided that, in the event such prime rate of interest is less than zero, such rate shall be deemed to be zero, and (ii) twelve and one-half percent (12.50%) (the "Interest Rate"). Interest only shall be payable at the Interest Rate during the period following the LSA Closing Date and continuing until the first day of the first full calendar month following the 18 month anniversary of the LSA Closing Date, provided, however, that such period shall be extended for six months if as of the 18 month anniversary of the LSA Closing Date, the Company has achieved certain milestones, as provided in the Supplement to the Loan and Security Agreement dated August 4, 2025, by and among the Company, NURO and Avenue (the "Supplement"); provided, further, however, that the such interest only period shall not exceed 24 months. Thereafter, principal and interest of the Term Loans shall be fully amortized and paid, in equal, monthly principal installments, plus interest at the Interest Rate for such month, through the Maturity Date, subject to the terms and conditions of the Supplement.

*Final Payment*. The Company will pay final payment at a fee of 3.5% of the Loan Amount, due upon the earlier of the Maturity Date or prepayment in full of the Term Loans.

*Prepayment Fee*. The Company may, at its option at any time, prepay the Term Loans in their entirety by paying the then outstanding principal balance and all accrued and unpaid interest on the Term Loans, subject to a prepayment fee equal to (i) 3.0% of the principal amount outstanding if the prepayment occurs on or prior to the first anniversary following the LSA Closing Date, (ii) 2.0% of the principal amount outstanding if the prepayment occurs after the first anniversary following the LSA Closing Date, but on or prior to the second anniversary following the LSA Closing Date, and (iii) 1.0% of the principal amount outstanding if the prepayment occurs after the second anniversary following the LSA Closing Date, but on or prior to the Maturity Date.

*Security*. The Loan and Security Agreement is collateralized by substantially all of the Company's assets in which Avenue is granted a senior secured lien. The Company also grants Avenue a negative pledge on the Company's intellectual property, subject to limited exceptions, pursuant to the Loan and Security Agreement.

*Covenants; Representations and Warranties; Other Provisions*. The Loan and Security Agreement contains customary representations, warranties and covenants, including covenants by the Company limiting certain additional indebtedness, liens (including a negative pledge on intellectual property and other assets, subject to limited exceptions), guaranties, substantial asset sales, investments and loans, certain corporate changes, transactions with affiliates and fundamental changes.

*Default Provisions*. The Loan and Security Agreement provides for events of default customary for term loans of this type, including but not limited to non-payment, breaches or defaults in the performance of covenants, insolvency, bankruptcy and the occurrence of a material adverse effect on the Company. After the occurrence of an event of default, Avenue may (i) accelerate payment of all obligations, impose an increased rate of interest, and terminate Avenue commitments under the Loan and Security Agreement and (ii) exercise any other right or remedy provided by contract or applicable law.

*Conversion Right*. Additionally, subject to certain exceptions, Avenue has the right to convert (the "Conversion Right") an aggregate amount of up to $2.5 million of the outstanding Loan Amount into shares of the Company's common stock at a conversion price per share equal to $8.4625, representing 125% of the lower of (i) the five-day volume-weighted average price of Company's common stock as calculated on the day prior to the LSA Closing Date, or (ii) the closing price of Company's common stock on the date prior to the LSA Closing Date ($6.77). In the event the Company elects to prepay the Term Loans in full, the Company shall provide no less than five business days' prior written notice to Avenue; provided, however, if Avenue has not yet exercised the Conversion Right, the Company shall provide written notice of prepayment at least 10 days in advance of the proposed prepayment date and Avenue shall have the option, with respect to the Conversion Right, to exercise the Conversion Right by delivering written notice to the Company at least two business days in advance of the proposed prepayment date.

*Right to Invest.* Avenue shall have the right, but not the obligation, to invest up to an aggregate of $1 million in equity securities of the Company on the same terms, conditions, and pricing offered by the Company to other investors in connection with any offering of the Company's equity securities to third party investors for capital raising purposes occurring after the Closing Date, on the terms and conditions set forth in the Supplement.

The foregoing summary of the Loan and Security Agreement and the Supplement do not purport to be complete and are qualified in their entirety by reference to the full text of Loan and Security Agreement and the Supplement, which are filed herewith as Exhibits 10.1 and 10.2, and are incorporated by reference herein. The representations, warranties and covenants in the Loan and Security Agreement and the Supplement were made only for purposes of such agreement and as of specific dates and were solely for the benefit of the parties to such agreements.

***Avenue Subscription Agreement***

In connection with the entry into the Loan and Security Agreement, the Company entered into a Subscription Agreement (the "Subscription Agreement") between the Company and Avenue, pursuant to which the Company issued 106,351 shares (the "Subscription Shares") of the Company's common stock to Avenue for no additional consideration. The issuance of the Subscription Shares was made in reliance on the exemption from registration contained in Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"), and Rule 506 of Regulation D thereunder, because the offer and sale of such securities does not involve a "public offering" as defined in Section 4(a)(2) of the Securities Act, and other applicable requirements are met.

Pursuant to the Subscription Agreement, the Company shall use its commercially reasonable efforts to prepare and file with the SEC within 60 days of the LSA Closing Date a registration statement on Form S-3, or if the Company is not then eligible to register for resale securities on Form S-3, on another appropriate form of registration statement, registering the resale of the Subscription Shares, and the shares of the Company's common stock issuable upon the Conversion Right pursuant to the Loan and Security Agreement.

The foregoing summary of the Subscription Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of Subscription Agreement, which is filed herewith as Exhibit 10.3 and is incorporated by reference herein. The representations, warranties and covenants Subscription Agreement were made only for purposes of such agreement and as of specific dates and were solely for the benefit of the parties to such agreement.

***Appointment of New Director***

On August 1, 2025, the Company's Board of Directors (the "Board") appointed James C. Theofilos as a new Class II member of the Board. The term of each Class II director lasts until the Company's 2026 annual meeting of stockholders. In connection with the appointment of Mr. Theofilos to the Board, the size of the Board was increased by resolution of the Board from seven members to eight members on August 1, 2025.

James C. Theofilos, 30, has been a Senior Finance Manager within the Azure and artificial intelligence division of Microsoft Corporation ("Microsoft") since October 2023. In this role, Mr. Theofilos is the Go-to-Market ("GTM") Finance Lead across Microsoft's AI Apps & Agents team, which includes all of Microsoft's AI models, GitHub Copilot, Copilot Studio, and other products that aim to deliver the full value of AI & Agents. Previously, Mr. Theofilos held various finance positions at Microsoft including his position as the Finance Lead for Microsoft's Global Healthcare & Life Sciences Sales team, which included exposure to the Health Providers, Payors, Pharma and Med Tech industry verticals. Prior to that, Mr. Theofilos consulted as a Group Project Manager at VICI Properties Inc., a publicly traded Real Estate Investment Trust primarily engaged in the business of owning and acquiring gaming, hospitality, wellness, entertainment, and leisure destinations, based in New York City. Mr. Theofilos holds an M.S. in Finance and a B.S.B.A. in Finance from Washington University in Saint Louis. The Board believes that Mr. Theofilos' business experience, and his knowledge of the finance and technology industries, qualify him to serve on the Board.

There are no arrangements or understandings between Mr. Theofilos and any other persons pursuant to which he was selected as a director of the Company. As required to be disclosed under Item 404(a) of Regulation S-K, Happy Holstein Management, LLC ("Happy Holstein"), of which Mr. Theofilos' mother, Kathryn Theofilos, is the manager, participated as an investor in the Company's June 2024 private placement. Happy Holstein purchased (i) warrants to purchase up to 385,059 shares of common stock, par value $0.001 per share, of the Company (the "Common Stock"), and (ii) and pre-funded warrants to purchase 770,119 shares of Common Stock, in the private placement, the terms of which were described in a registration statement on Form S-1, originally filed by the Company with the SEC on July 10, 2024. The registration statement on Form S-1 covers the resale of certain securities issuable in connection with the private placement, and was declared effective by the SEC on July 22, 2024.

In connection with his appointment to the Board, Mr. Theofilos will receive the Company's standard non-employee director compensation, and has been granted an inaugural equity award effective August 1, 2025, pursuant to the Company's Non-Employee Director Compensation Policy, a copy of which was filed with the SEC as Exhibit 10.13 to the Company's Registration Statement on Form S-1 on August 24, 2023. Additionally, Mr. Theofilos and the Company will enter into the Company's standard indemnification agreement for directors and executive officers, the form of which was filed with the SEC as Exhibit 10.14 to the Company's Registration Statement on Form S-1/A on May 21, 2018.

***Resignation and Reappointment of a Director***

Consistent with the amended and restated certificate of incorporation and amended and restated bylaws of the Company, and in order to achieve a more equal balance of membership among the three classes of members of the Board, the Board has determined that one of the Class II directors with a term expiring at the Company's 2026 annual meeting of stockholders should move to Class III with a term expiring at the Company's 2027 annual meeting of stockholders. Accordingly, on August 1, 2025, Thomas M. Patton resigned as a Class II director with a term expiring at the Company's 2026 annual meeting of stockholders, and was immediately reappointed to the Board as a Class III director with a term expiring at the Company's 2027 annual meeting of stockholders. The resignation and reappointment of Mr. Patton was not due to any disagreement with the Company, the Board or the management of the Company. For all other purposes, including equity award vesting and other compensation matters, Mr. Patton's service on the Board is deemed to have continued uninterrupted. Mr. Patton will continue as the Chair of the Audit Committee of the Board.

(b) Not applicable.

(c) Trading Plans.

During the quarter ended June 30, 2025, no director or Section 16 officer adopted or terminated any Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements (in each case, as defined in Item 408(a) of Regulation S-K promulgated by the SEC).

**Item 6. EXHIBITS**

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| | |
|:---|:---|
| **Exhibit**<br> **Number** | **Description** |
| 10.1\*# | [Loan and Security Agreement by and among electroCore, Inc., NeuroMetrix, Inc., and Avenue Venture Opportunities Fund II, L.P., dated August 4, 2025.](ex10-1.htm) |
| 10.2\*^ | [Supplement to Loan and Security Agreement by and among electroCore, Inc., NeuroMetrix, Inc., and Avenue Venture Opportunities Fund II, L.P., dated August 4, 2025.](ex10-2.htm) |
| 10.3\*^ | [Subscription Agreement between electroCore, Inc. and Avenue Venture Opportunities Fund II, L.P., dated August 4, 2025](ex10-3.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.](ex31-1.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.](ex31-2.htm) |
| 32.1\*\* | [Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ex32-1.htm) |
| 32.2\*\* | [Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ex32-2.htm) |
| 101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL 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 (formatted as Inline XBRL and contained in Exhibit 101) |

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| | |
|:---|:---|
| \* | Filed herewith.<br>|
| \*\* | The certifications attached as Exhibits 32.1 and 32.2 that accompany this Annual Report are not deemed filed with the SEC and are not to be incorporated by reference into any filing of electroCore, Inc. under the Securities Act of 1933 or the Securities Exchange Act of 1934, whether made before or after the date of this Annual Report, irrespective of any general incorporation language contained in such filing. |
| # | Pursuant to Item 601(a)(5) of Regulation S-K, certain schedules and exhibits to this exhibit have been omitted from this Quarterly Report on Form 10-Q and will be furnished to the Securities and Exchange Commission supplementally upon request. |
| ^ | Certain confidential portions of this exhibit have been redacted from the publicly filed document because such portions are (i) not material and (ii) would be competitively harmful of publicly disclosed. |

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**SIGNATURES**

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

---

| | | |
|:---|:---|:---|
|  | Company Name | Company Name |
| Date: August 6, 2025 | By: | */s/ DANIEL S. GOLDBERGER* |
|  |  | **Daniel S. Goldberger** |
|  |  | **Chief Executive Officer**<br> **(Principal Executive Officer)** |
| Date: August 6, 2025 | By: | */s/ JOSHUA S. LEV* |
|  |  | **Joshua S. Lev** |
|  |  | **Chief Financial Officer**<br> **(Principal Financial and Accounting Officer)** |

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## Exhibit 10.1

**Exhibit 10.1**

**PURSUANT TO ITEM 601(A)(5) OF REGULATION S-K, CERTAIN SCHEDULES AND EXHIBITS HAVE BEEN OMITTED FROM THIS EXHIBIT AND WILL BE FURNISHED TO THE SECURITIES AND EXCHANGE COMMISSION SUPPLEMENTALLY UPON REQUEST. SUCH OMITTED INFORMATION IS IDENTIFIED BY BRACKETED ASTERISKS ([\*\*\*]).**

**LOAN AND SECURITY AGREEMENT**

**Dated as of August 4, 2025** 

**between**

**ELECTROCORE, INC.**

**a Delaware corporation** 

**(referred to herein as "<u>Borrower</u>" or as "<u>Company</u>")**

**as a borrower, and**

**NEUROMETRIX, INC.**

**a Delaware corporation ("<u>NeuroMetrix</u>")**

**as a borrower**

**(together with Company, each, individually, a "<u>Borrower</u>", and collectively "<u>Borrower</u>")**

**and**

**AVENUE VENTURE OPPORTUNITIES FUND II, L.P., a Delaware limited partnership**

**as administrative agent and collateral agent (in such capacity "<u>Agent</u>")**

**and as a lender (in such capacity, "<u>Lender</u>")**

**LOAN AND SECURITY AGREEMENT**

Borrower, Lender and Agent anticipate entering into one or more transactions pursuant to which Lender agrees to make available to Borrower a loan facility governed by the terms and conditions set forth in this document and one or more Supplements executed by Borrower, Lender and Agent which incorporate this document by reference. Each Supplement constitutes a supplement to and forms part of this document, and will be read and construed as one with this document, so that this document and the Supplement constitute a single agreement between the parties (collectively referred to as this **"<u>Agreement</u>"**).

Accordingly, the parties agree as follows:

**ARTICLE 1 -** INTERPRETATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1 Definitions.** The terms defined in Article 11 and in the Supplement will have the meanings therein specified for purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2 Inconsistency.** In the event of any inconsistency between the provisions of any Supplement and this document, the provisions of the Supplement will be controlling for the purpose of all relevant transactions.

**ARTICLE 2 -** THE COMMITMENT AND LOANS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1 The Commitment**. Subject to the terms and conditions of this Agreement, Lender agrees to make term loans to Borrower from time to time from the Closing Date and to and including the Termination Date in an aggregate principal amount not exceeding the Commitment. The Commitment is not a revolving credit commitment, and Borrower does not have the right to repay and reborrow hereunder. Each Loan requested by Borrower to be made on a single Business Day shall be for a minimum principal amount set forth in the Supplement, except to the extent the remaining Commitment is a lesser amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2 Notes Evidencing Loans; Repayment**. Each Loan shall be evidenced by a separate Note payable to the order of Lender, in the total principal amount of the Loan. Principal and interest of each Loan shall be payable at the times and in the manner set forth in the Note and regularly scheduled payments thereof shall be effected by automatic debit of the appropriate funds from Borrower's Primary Operating Account as specified in the Supplement hereto. Repayment of the Loans and payment of all other amounts owed to Lender will be paid by Borrower in the currency in which the same has been provided (i.e., United States Dollars).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3 Procedures for Borrowing**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** Other than a borrowing on the Closing Date, at least five (5) Business Days prior to a proposed Borrowing Date (or such lesser period of time as may be agreed upon by Lender participating in the Loan in its sole discretion), Lender shall have received from Company a written request for a borrowing hereunder (a **"<u>Borrowing Request</u>"**). Each Borrowing Request shall be in substantially the form of <u>Exhibit "B"</u> to the Supplement, shall be executed by a responsible executive or financial officer of Borrower, and shall state the amount of the requested Loan, and shall be accompanied by such other information and documentation as Lender may reasonably request, including the executed Note(s) for the Loan(s) covered by the Borrowing Request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** No later than 1:00 p.m. Pacific Standard Time on the Borrowing Date, if Borrower has satisfied the conditions precedent in Article 4 by 9:00 a.m. Pacific Standard Time on such Borrowing Date, Lender shall make its pro rata share of the Loan available to Borrower in immediately available funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.4 Interest**. Except as otherwise specified in the applicable Note and/or Supplement, Basic Interest on the outstanding principal balance of each Loan shall accrue daily at the Designated Rate from the applicable Borrowing Date. If the outstanding principal balance of such Loan is not paid at maturity, interest shall accrue at the Default Rate until paid in full, as further set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.5 Intentionally Omitted**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.6 Interest Rate Calculation**. Basic Interest, along with charges and fees under this Agreement and any Loan Document, shall be calculated for actual days elapsed on the basis of a 360-day year, which results in higher interest, charge or fee payments than if a 365-day year were used. In no event shall Borrower be obligated to pay Lender's interest, charges or fees at a rate in excess of the highest rate permitted by applicable law from time to time in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.7 Default Interest**. Any unpaid payments in respect of the Obligations shall bear interest from their respective maturities, whether scheduled or accelerated, at the Default Rate, compounded monthly. Borrower shall pay such interest promptly on written (electronic mail being sufficient) demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.8 Late Charges.** If Borrower is late in making any scheduled payment in respect of the Obligations by more than five (5) days, then Borrower agrees to pay a late charge of five percent (5%) of the payment due, but not less than $50.00 for any one such delinquent payment. This late charge may be charged by Lender for the purpose of defraying the expenses incidental to the handling of such delinquent amounts. Borrower acknowledges that such late charge represents a reasonable sum considering all of the circumstances existing on the date of this Agreement and represents a fair and reasonable estimate of the costs that will be sustained by Lender due to the failure of Borrower to make timely payments. Borrower further agrees that proof of actual damages would be costly and inconvenient. Such late charge shall be paid without prejudice to the right of Lender and Agent to collect any other amounts provided to be paid or to declare a default under this Agreement or any of the other Loan Documents or from exercising any other rights and remedies of Agent or Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.9 Lender's Records**. Principal, Basic Interest and all other sums owed under any Loan Document shall be evidenced by entries in records maintained by Lender for such purpose. Each payment on and any other credits with respect to principal, Basic Interest and all other sums outstanding under any Loan Document shall be evidenced by entries in such records. Absent manifest error, Lender's records shall be conclusive evidence thereof. Upon prior written request by Borrower, Lender shall provide to Borrower and its auditors such record entries to assist with their preparation of the Borrower's financial statements required to be delivered pursuant to Section 5.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.10 Grant of Security Interests; Filing of Financing Statements.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** To secure the timely payment and performance of all of Borrower's Obligations, Borrower hereby grants to Agent, for the benefit of Lender, a continuing lien on and security interest in all of the Collateral. In connection with the foregoing, Borrower hereby authorizes Agent to prepare and file any financing statements describing the Collateral without otherwise obtaining Borrower's signature or consent with respect to the filing of such financing statements. Such financing statements may indicate the Collateral as "all assets of the Debtor" or words of similar effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** In furtherance of Borrower's grant of the security interests in the Collateral pursuant to Section 2.10(a) above, Borrower hereby pledges and grants to Agent, for the benefit of Lender, a security interest in all the Shares, together with all proceeds and substitutions thereof, all cash, stock and other moneys and property paid thereon, all rights to subscribe for securities declared or granted in connection therewith, and all other cash and noncash proceeds of the foregoing, as security for the performance of the Obligations. On the Closing Date or at any time thereafter following Agent's request, the certificate or certificates for the Shares will be delivered to Agent, accompanied by an instrument of assignment duly executed in blank by Borrower, unless such Shares have not been certificated. To the extent required by the terms and conditions governing the Shares, Borrower shall cause the books of each entity whose Shares are part of the Collateral and any transfer agent to reflect the pledge of the Shares. Upon the occurrence and during the continuance of an Event of Default hereunder and written notice to Borrower, Agent may effect the transfer of any securities included in the Collateral (including but not limited to the Shares) into the name of Agent and cause new certificates representing such securities to be issued in the name of Agent or its transferee(s). Borrower will execute and deliver such documents, and take or cause to be taken such actions, as Agent may reasonably request in writing (electronic mail being sufficient) to perfect or continue the perfection of Agent's security interest in the Shares. Except as provided in the following sentence, Borrower shall be entitled to exercise any voting rights with respect to the Shares and to give consents, waivers and ratifications in respect thereof, provided that no vote shall be cast or consent, waiver or ratification given or action taken which would constitute a violation of any of the terms of this Agreement. All such rights to vote and give consents, waivers and ratifications shall terminate upon the occurrence and continuance of an Event of Default and Agent's written notice to Borrower of Agent's intent to exercise its rights and remedies under this Agreement, including this Section 2.10(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** Borrower is and shall remain absolutely and unconditionally liable for the performance of its Obligations, including, without limitation, any deficiency by reason of the failure of the Collateral to satisfy all amounts due to Lender under any of the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)** All Collateral pledged by Borrower under this Agreement and any Supplement shall secure the timely payment and performance of all Obligations. Except as expressly provided in this Agreement, no Collateral pledged under this Agreement or any Supplement shall be released until such time as all Obligations have been satisfied and paid in full (other than inchoate indemnity obligations).

**ARTICLE 3 -** REPRESENTATIONS AND WARRANTIES**

Borrower represents and warrants that, except as set forth in the Supplement or the Schedule of Exceptions hereto, if any, as of the Closing Date and each Borrowing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1 Due Organization**. Borrower is an entity duly organized and validly existing in good standing under the laws of the jurisdiction of its incorporation or formation, and is duly qualified to conduct business and is in good standing in each other jurisdiction in which its business is conducted or its properties are located, except where the failure to be so qualified would not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2 Authorization, Validity and Enforceability**. The execution, delivery and performance of all Loan Documents executed by Borrower are within Borrower's powers, have been duly authorized, and are not in conflict with Borrower's certificate of incorporation or by-laws, or the terms of any charter or other organizational document of Borrower, as amended from time to time; and all such Loan Documents constitute valid and binding obligations of Borrower, enforceable in accordance with their terms (except as may be limited by bankruptcy, insolvency and similar laws affecting the enforcement of creditors' rights in general, and subject to general principles of equity).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3 Compliance with Applicable Laws**. Borrower has complied with all licensing, permit and fictitious name requirements necessary to lawfully conduct the business in which it is engaged, and to any sales, leases or the furnishing of services by Borrower, including without limitation those requiring consumer or other disclosures, the noncompliance with which would have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.4 No Conflict**. The execution, delivery, and performance by Borrower of all Loan Documents are not in conflict with any law, rule, regulation, order or directive, or any material indenture, agreement, or undertaking to which Borrower is a party or by which Borrower may be bound or affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.5 No Litigation, Claims or Proceedings**. Except as shown on Schedule 3.5, there is no litigation, tax claim, proceeding or dispute pending, or, to the knowledge of Borrower, threatened against or affecting Borrower, its property or the conduct of its business that, individually or on the aggregate, would reasonably be expected to result in liability or damages to Borrower in excess of $100,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.6 Correctness of Financial Statements**. Borrower's financial statements dated as of ______ __, 2025 which have been delivered to Lender fairly and accurately, in all material respects, reflect Borrower's financial condition in accordance with GAAP (except for the Monthly Financial Statements) as of the latest date of such financial statements; and, since that date there has been no Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.7 No Subsidiaries**. Except as shown on Schedule 3.17, as of the Closing Date, Borrower is not a majority owner of or in a control relationship with any other business entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.8 Environmental Matters**. To its knowledge after reasonable inquiry, Borrower has concluded that Borrower is in compliance with Environmental Laws, except to the extent a failure to be in such compliance would not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.9 No Event of Default**. Except as disclosed on Schedule 3.9, no Default or Event of Default has occurred and is continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.10 Full Disclosure**. None of the representations or warranties made by Borrower in the Loan Documents as of the date such representations and warranties are made or deemed made, and none of the written statements contained in any exhibit, report, statement or certificate furnished by or on behalf of Borrower in connection with the Loan Documents (including disclosure materials delivered by or on behalf of Borrower to either Lender prior to the Closing Date or pursuant to Section 5.2 hereof), taken as a whole, contains any untrue statement of a material fact or omits any material fact required to be stated therein or necessary to make the statements made therein, in light of the circumstances under which they are made, not materially misleading as of the time when made or delivered; <u>provided</u> that, with respect to projected financial information, the Borrower represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time delivered and, if such projected financial information was delivered prior to the Closing Date, as of the Closing Date (it being the understanding that the projections, by their nature, are inherently uncertain, no assurances are being given that the results reflected in the projections will be achieved, and actual results during the period or periods covered by any such projections may differ from the projected results in material respects).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.11 Specific Representations Regarding Collateral.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) Rights to Payment.** The names of the obligors, amounts owing to Borrower, due dates and all other information with respect to the Rights to Payment are and will be correctly stated in all material respects in all Records relating to the Rights to Payment. Borrower further represents and warrants, to its knowledge, that each Person appearing to be obligated on a Right to Payment has authority and capacity to contract and is bound as it appears to be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c) Location of Collateral.** As of the Closing Date, Borrower's chief executive office, Inventory, Records, Equipment, and any other offices or places of business are located at the address(es) shown on the Supplement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d) Business Names.** Other than its full corporate name, Borrower has not conducted business using any trade names or fictitious business names except as shown on the Supplement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.12 Copyrights, Patents, Trademarks and Licenses**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** Borrower owns or is licensed or otherwise has the right to use all of the Patents, Trademarks, service marks, trade names, Copyrights, contractual franchises, authorizations and other similar rights that are reasonably necessary for the operation of its business, without known material conflict with the rights of any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** To Borrower's knowledge, no slogan or other advertising device, product, process, method, substance, part or other material now employed, or now contemplated to be employed, by Borrower infringes upon any rights held by any other Person in any material respect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** Except as disclosed on Schedule 3.5 concerning UAB Pulsetto, no claim or litigation regarding any of the foregoing is pending or, to Borrower's knowledge, threatened, and, to Borrower's knowledge, no patent, invention, device, application, principle or any statute, law, rule, regulation, standard or code is pending or proposed which, in either case, could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.13 Regulatory Compliance.** Borrower has met the minimum funding requirements of ERISA with respect to any employee benefit plans subject to ERISA. No event has occurred resulting from Borrower's failure to comply with ERISA that is reasonably likely to result in Borrower's incurring any liability that could have a Material Adverse Effect. Borrower is not required to be registered as an "investment company" or a company "controlled" by an "investment company" within the meaning of the Investment Company Act of 1940. Borrower is not engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulations T and U of the Board of Governors of the Federal Reserve System). Borrower has complied in all material respects with all the provisions of the Federal Fair Labor Standards Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.14 Shares.** Borrower has full power and authority to create a first priority Lien on the Shares and no disability or contractual obligation exists that would prohibit Borrower from pledging the Shares pursuant to this Agreement. To Borrower's knowledge, there are no subscriptions, warrants, rights of first refusal or other restrictions on transfer relative to, or options exercisable with respect to the Shares. The Shares have been and will be duly authorized and validly issued, and are fully paid and non-assessable. To Borrower's knowledge, the Shares are not the subject of any present or threatened suit, action, arbitration, administrative or other proceeding, and Borrower knows of no reasonable grounds for the institution of any such proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.15 Compliance with Anti-Corruption Laws.** Borrower has not taken any action that would cause a violation of any anti-corruption law, including but not limited to, the Foreign Corrupt Practices Act, the United Kingdom Bribery Act, and all other applicable anti-corruption laws. Borrower, its employees, agents and, to Borrower's knowledge, its representatives have not, directly or indirectly, offered, paid, given, promised or authorized the payment of any money, gift or anything of value to any person acting in an official capacity for any government department, agency or instrumentality, including state-owned or controlled companies or entities, and public international organizations, as well as a political party or official thereof or candidate for political office. None of Borrower's principals or staff are officers, employees or representatives of governments, government agencies, or government-owned or controlled enterprises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.16 Survival.** The representations and warranties of Borrower as set forth in this Agreement survive the execution and delivery of this Agreement.

**ARTICLE 4 -** CONDITIONS PRECEDENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1 Conditions to First Loan**. The obligations of Lender to make its first Loan hereunder is, in addition to the conditions precedent specified in Section 4.2 and in any Supplement, subject to the fulfillment of the following conditions and to the receipt by Lender of the documents described below, duly executed and in form and substance satisfactory to Lender and its counsel:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Resolutions**. A certified copy of the resolutions of the Board of Directors of Borrower authorizing the execution, delivery and performance by Borrower of the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) Incumbency and Signatures**. A certificate of the secretary of Borrower certifying the names of the officer or officers of Borrower authorized to sign the Loan Documents, together with a sample of the true signature of each such officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c) Legal Opinion**. The opinion of legal counsel for Borrower as to such matters as Agent or Lender may reasonably request, in form and substance satisfactory to Agent and Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d) Charter Documents**. Copies of the organizational and charter documents of Borrower (e.g., Articles or Certificate of Incorporation and Bylaws), as amended through the Closing Date, certified by an officer of Borrower as being true, correct and complete.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e) This Agreement**. Counterparts of this Agreement and the initial Supplement, with all schedules completed and attached thereto, and disclosing such information as is acceptable to Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f) Financing Statements**. Filing copies (or other evidence of filing satisfactory to Agent and its counsel) of such UCC financing statements, collateral assignments, account control agreements, and termination statements, with respect to the Collateral as Agent shall request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g) Intellectual Property Security Agreement.** An Intellectual Property Security Agreement executed by Borrower in form and substance satisfactory to Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h) Lien Searches**. UCC lien, judgment, bankruptcy and tax lien searches of Borrower from such jurisdictions or offices as Agent may reasonably request, all as of a date reasonably satisfactory to Agent and its counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i) Good Standing Certificate**. A certificate of status or good standing of Borrower as of a date acceptable to Agent from the jurisdiction of Borrower's organization and any foreign jurisdictions where Borrower is qualified to do business, except any foreign jurisdictions where the failure to be so qualified could not reasonably be expected to have a Material Adverse Effect or result in fines or liability in excess of $100,000 in the aggregate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(j) Equity Grant**. The shares of the Borrower's capital stock issuable to Lender pursuant to the Subscription Agreement shall have been issued in accordance with the terms of such Subscription Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(k) Insurance Certificates**. Insurance certificates showing Agent as loss payee or additional insured.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(l) Other Documents**. Such other documents and instruments as Agent or Lender may reasonably request to effectuate the intents and purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2 Conditions to All Loans**. The obligation of Lender to make its initial Loan and any subsequent Loan is subject to the following further conditions precedent that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) No Default**. No Default or Event of Default has occurred and is continuing or will result from the making of any such Loan, and the representations and warranties of Borrower contained in Article 3 of this Agreement and Part 3 of the Supplement are true and correct in all material respects as of the Borrowing Date of such Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) No Material Adverse Change**. Since the date of the Borrower's most recent audited financial statements, no event has occurred that has had or could reasonably be expected to have a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c) Borrowing Request**. Company shall have delivered to Lender a Borrowing Request for such Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d) Note**. Borrower shall have delivered an executed Note evidencing such Loan, substantially in the form attached to the Supplement as an exhibit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e) Supplemental Lien Filings**. Borrower shall have executed and delivered such amendments or supplements to this Agreement and additional Security Documents, financing statements and third party waivers as Agent may reasonably request in connection with the proposed Loan, in order to create, protect or perfect or to maintain the perfection of Agent's Liens on the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f) Financial Projections**. Company shall have delivered to Lender Borrower's budget, business plan and/or financial projections or forecasts as most recently approved by Borrower's Board of Directors.

**ARTICLE 5 -** AFFIRMATIVE COVENANTS**

During the term of this Agreement and until its performance of all Obligations (other than inchoate indemnity obligations), Borrower will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1 Notice to Lender**. Promptly give written notice to Lender of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** Any litigation or administrative or regulatory proceeding affecting Borrower where the amount claimed against Borrower is at the Threshold Amount or more, or where the granting of the relief requested could reasonably be expected to have a Material Adverse Effect; or of the acquisition by Borrower of any commercial tort claim, including brief details of such claim and such other information as Agent may reasonably request to enable Agent to better perfect its Lien in such commercial tort claim as Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** Any substantial dispute which may exist between Borrower and any governmental or regulatory authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** The occurrence of any Default or any Event of Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)** Any change in the location of any of Borrower's places of business or Collateral (other than Collateral out for repair, in the possession of employees or in transit) at least thirty (30) days in advance of such change, or of the establishment of any new, or the discontinuance of any existing, place of business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)** Any dispute or default by Borrower or any other party under any joint venture, partnering, distribution, cross-licensing, strategic alliance, collaborative research or manufacturing, license or similar agreement which could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)** Any other matter which has resulted or might reasonably result in a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)** Any new Subsidiary that Borrower intends to acquire or create.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2 Financial Statements**. Deliver to Lender or cause to be delivered to Agent and Lender, in form and detail satisfactory to Agent and Lender, the following financial and other information, which Company warrants shall be accurate and complete in all material respects:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Monthly Financial Statements**. As soon as available but no later than thirty (30) days after the end of each month, Company's unaudited consolidated balance sheet as of the end of such period, and Company's unaudited consolidated income statement and cash flow statement for such period and for that portion of Company's financial reporting year ending with such period (the "**<u>Monthly Financial Statements</u>**"), attested by a responsible financial officer of Borrower as being complete and correct in all material respects and fairly presenting Company's consolidated financial condition and the results of Company's operations and cash flows as of the date(s) and for the period(s) covered thereby. The Monthly Financial Statements will be prepared in conformity with the Company's usual and customary policies, practices, and procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) Year-End Financial Statements**. As soon as available but no later than ninety (90) days after the end of each financial reporting year (unless the SEC has promulgated an extension to the annual filing deadline applicable to the Borrower, in which case the deadline shall be the earlier of such date or one hundred twenty (120) days after the end of the applicable financial reporting year), a complete copy of Company's audit report, which shall include balance sheet, income statement, statement of changes in equity and statement of cash flows for such year, prepared in accordance with GAAP and certified by an independent certified public accountant selected by Company and satisfactory to Lender (the **"<u>Accountant</u>"**) (which financial statements, for the avoidance of doubt, shall be deemed to be delivered in accordance with this clause (b) when and to the extent such financial statements are filed by Borrower with the SEC and Borrower has sent Agent a link to such filing). The Accountant's certification shall not be qualified or limited due to a restricted or limited examination by the Accountant of any material portion of Borrower's records.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c) Compliance Certificates**. Simultaneously with the delivery of each set of financial statements referred to in paragraphs (a) and (b) above, a certificate of the chief financial officer of Company (or other executive officer) substantially in the form of <u>Exhibit "C"</u> to the Supplement (a **"<u>Compliance Certificate</u>"**) stating, among other things, whether any Default or Event of Default exists on the date of such certificate, and if so, setting forth the details thereof and the action which Borrower is taking or proposes to take with respect thereto. If requested by Lender, a Compliance Certificate also shall be delivered to Lender on the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d) Government Required Reports**. Promptly after sending, issuing, making available, or filing, copies of all reports, proxy statements, and financial statements that Company sends or makes available generally to its stockholders, and, not later than five (5) days after actual filing or the date such filing was first due, all registration statements and reports that Company files or is required to file with the Securities and Exchange Commission, or any other governmental or regulatory authority having similar authority (which copies, for the avoidance of doubt, shall be deemed to be delivered in accordance with this clause (d) when and to the extent such underlying financial statements, proxy statements or reports are filed by Borrower with the SEC and made publicly available and Borrower has delivered to Agent a link to such filing(s)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e) Other Information**. Such other statements, lists of property and accounts, budgets (as updated), sales projections, forecasts, reports, 409A valuation reports (as updated), operating plans, financial exhibits, capitalization tables (as updated) and information relating to equity and debt financings consummated after the Closing Date (including post-closing capitalization table(s)), or other information, in each case, as Lender may from time to time reasonably request in writing (which statements or other information, for the avoidance of doubt, shall be deemed to be delivered in accordance with this clause (e) when and to the extent such statements or other information are filed by Borrower with the SEC and Borrower has delivered to Agent a link to such filing(s)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f) Board Packages**. In addition to the information described in Section 5.2(e), Company will promptly provide Agent and Lender with copies of information and notices it supplies to its shareholders or a link thereto, and copies of all information, notices, minutes, consents and other materials, financial or otherwise, which Company provides to its Board of Directors (collectively, **"<u>Board Packages</u>"**), which material may used by Lender solely in connection with, and subject to, its obligations under this Agreement; <u>provided, however</u>, that Company need not provide Lender with copies of routine Board actions, such as option and stock grants under Company's equity incentive plan in the normal course of business; and <u>provided</u>, <u>further</u>, <u>however</u>, that such Board Packages may be redacted to the extent that (i) based on the advice of counsel, Company's Board of Directors determines such redaction is reasonably necessary to preserve the attorney-client privilege, to protect highly confidential proprietary information, or for other similar reasons or (ii) such redacted material relates to Lender (or Company's strategy regarding the Loans or Lender).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.3 [Reserved.]**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.4 Existence**. Maintain and preserve Borrower's existence, present form of business (including lines of business that are similar, related or incidental thereto and reasonable extensions thereof), and all rights and privileges necessary in the normal course of its business; and keep all Borrower's property in good working order and condition, ordinary wear and tear excepted, in each case, except to the extent not prohibited hereby; provided further, that Borrower shall not be required to preserve any such rights if no longer desirable in the conduct of its business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.5 Insurance**. Obtain and keep in force insurance in such amounts and types as is usual in the type of business conducted by Borrower, with insurance carriers having a policyholder rating of not less than "A" and financial category rating of Class VII in "Best's Insurance Guide," unless otherwise approved by Lender. Such insurance policies must be in form and substance reasonably satisfactory to Lender, and, to the extent customary and excluding any third-party liability policies, shall list Agent as an additional insured or loss payee, as applicable, on endorsement(s) in form reasonably acceptable to Agent. Borrower shall furnish to Agent such endorsements, and upon the request of Agent or the Lender, copies of any or all such policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.6 Accounting Records**. Maintain adequate books, accounts and records, and prepare all financial statements in accordance with GAAP (except for the Monthly Financial Statements), and in compliance with the regulations of any governmental or regulatory authority having jurisdiction over Borrower or Borrower's business; and permit employees or agents of Agent at such reasonable times as Agent may request, at Borrower's expense (not to exceed $2,500 not more than once in any 12-month period unless an Event of Default has occurred and is continuing), to inspect Borrower's properties, and to examine, review and audit, and make copies and memoranda of Borrower's books, accounts and records; <u>provided, however</u>, that such books, accounts and records may be redacted to the extent that (i) based on the advice of counsel, Borrower determines such redaction is reasonably necessary to preserve the attorney-client privilege, to protect highly confidential proprietary information, or for other similar reasons or (ii) such redacted material relates to Agent or Lender (or Borrower's strategy regarding the Loans, Agent or Lender).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.7 Compliance with Laws**. Comply with all laws (including Environmental Laws), rules, regulations applicable to, and all orders and directives of any governmental or regulatory authority having jurisdiction over, Borrower or Borrower's business, and with all material agreements to which Borrower is a party, except where the failure to so comply would not have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.8 Taxes and Other Liabilities**. Pay all Borrower's and each Subsidiary's Indebtedness when due; pay all taxes and other governmental or regulatory assessments before delinquency or before any penalty attaches thereto, except as may be contested in good faith by the appropriate procedures and for which Borrower shall maintain appropriate reserves; and timely file all required tax returns (subject to any applicable extensions).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.9 Special Collateral Covenants.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Maintenance of Collateral; Inspection.** Do all things reasonably necessary to maintain, preserve, protect and keep all Collateral in good working order and salable condition, ordinary wear and tear excepted, deal with the Collateral in all commercially reasonable ways as are considered good practice by owners of like property, and use the Collateral lawfully and, to the extent applicable, only as permitted by Borrower's insurance policies, subject to Transfers permitted by Section 6.5. Maintain, or cause to be maintained, complete and accurate Records, in all material respects, relating to the Collateral. Upon reasonable prior written notice at reasonable times during normal business hours (not more than once per 12-month period unless an Event of Default has occurred and is continuing), Borrower hereby authorizes Lender's officers, employees, representatives and agents to inspect the Collateral and to discuss the Collateral and the Records relating thereto with Borrower's officers and employees, and, in the case of any Right to Payment, after consultation with Borrower, with any Person which is or may be obligated thereon; <u>provided, however</u>, that such Records and other related materials may be redacted to the extent that (i) based on the advice of counsel, Borrower determines such redaction is reasonably necessary to preserve the attorney-client privilege, to protect highly confidential proprietary information, or for other similar reasons or (ii) such redacted material relates to Agent or Lender (or Borrower's strategy regarding the Loans, Agent or Lender).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) Documents of Title.** Not sign or authorize the signing of any financing statement or other document naming Borrower as debtor or obligor, or acquiesce or cooperate in the issuance of any bill of lading, warehouse receipt or other document or instrument of title with respect to any Collateral, except those negotiated to Agent, or those naming Agent as secured party, or if solely to create, perfect or maintain a Permitted Lien.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c) Change in Location or Name.** Without at least 30 days' prior written notice to Agent: (a) not relocate any Collateral or Records, its chief executive office, or establish a place of business at a location other than as specified in the Supplement; and (b) not change its name, mailing address, location of Collateral, jurisdiction of incorporation or its legal structure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d) Decals, Markings.** At the request of Lender, firmly affix a decal, stencil or other marking to designated items of Equipment valued in excess of $50,000, indicating thereon the security interest of Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e) Agreement with Persons in Possession of Collateral.** Use its commercially reasonable efforts to obtain and maintain such acknowledgments, consents, waivers and agreements (each a **"<u>Waiver</u>"**) from the owner, operator, lienholder, mortgagee, landlord or any Person in possession of tangible Collateral in excess of $100,000 per location as Lender may require, all in form and substance reasonably satisfactory to Lender. In addition, Lender shall have the right to require Borrower to use its commercially reasonable efforts to provide Agent with a Waiver for any Collateral that is located in a jurisdiction that provides for statutory landlord's Liens and for any location at which the Person in possession of such Collateral has a Lien thereon. Notwithstanding anything to the contrary in this Section 5.9(e), Borrower and Lender acknowledge and agree that all material Intellectual Property and Records that are maintained on items of Collateral for which Borrower is unable to provide a Waiver also shall be maintained or backed up in a manner sufficient that Agent shall be able to have access to such Intellectual Property and Records in accordance with the exercise of Agent's rights hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f) Certain Agreements on Rights to Payment.** Other than in the ordinary course of business, not make any material discount, credit, rebate or other reduction in the original amount owing on a Right to Payment or accept in satisfaction of a Right to Payment less than the original amount thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.10 Authorization for Automated Clearinghouse Funds Transfer.** (i) Authorize Lender and Agent to initiate debit entries to Company's Primary Operating Account, specified in the Supplement hereto, through Automated Clearinghouse (**"<u>ACH</u>"**) transfers, in order to satisfy the regularly scheduled payments of principal and interest; (ii) provide Lender at least thirty (30) days' notice of any change in Company's Primary Operating Account; and (iii) grant Lender any additional authorizations necessary to begin ACH debits from a new account which becomes the Primary Operating Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.11 Anti-Corruption Laws.** Provide true, accurate and complete information, in all material respects, in all product orders, reimbursement requests and other communications relating to Borrower and its products.

**ARTICLE 6 -** NEGATIVE COVENANTS**

During the term of this Agreement and until the performance of all Obligations (other than inchoate indemnity obligations), Borrower will not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1 Indebtedness.** Be indebted for borrowed money, the deferred purchase price of property, or leases which would be capitalized in accordance with GAAP; or become liable as a surety, guarantor, accommodation party or otherwise for or upon the obligation of any other Person, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** Indebtedness incurred for the acquisition of supplies, Inventory or other property or services on normal trade credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** Indebtedness incurred pursuant to one or more transactions permitted under <u>Section 6.4</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** Indebtedness of Borrower under this Agreement or any other Loan Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)** Subordinated Debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)** any Indebtedness approved by Lender prior to the Closing Date as shown on <u>Schedule 6.1</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)** Indebtedness secured by a lien described in clause (c) of the defined term "Permitted Liens" not to exceed $100,000 in aggregate principal amount outstanding at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)** Indebtedness incurred under corporate credit cards not to exceed $250,000 in aggregate principal amount outstanding at any time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h)** guaranties and similar surety obligations in respect of Indebtedness permitted under this Section 6.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)** Indebtedness in respect of netting services, overdraft protections and otherwise in connection with deposit accounts in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(j)** unsecured Indebtedness to pay the deferred purchase price of goods or services or progress payments in connection with such goods and services; provided that such obligations are incurred in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(k)** Indebtedness consisting of (i) current (and not overdue) obligations to pay insurance premiums not to exceed $750,000 at any time, or (ii) take or pay obligations contained in supply agreements, in each case arising in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(l)** Indebtedness representing deferred compensation to officers, directors or employees incurred in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(m)** Indebtedness representing any Taxes to the extent such Taxes are being contested by the Loan Parties in good faith by appropriate proceedings and adequate reserves are being maintained by the applicable Person in accordance with GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(n)** extensions, refinancings and renewals of any of the foregoing; provided that the principal amount thereof is not increased; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(o)** other unsecured Indebtedness in an aggregate principal amount not exceeding $100,000 in the aggregate at any time outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2 Liens**. Create, incur, assume or permit to exist any Lien, or grant any other Person a negative pledge, on any of Borrower's property, except Permitted Liens and any negative pledge in respect of any asset subject to a Lien permitted by clause (c) of the definition of Permitted Liens. Borrower, Lender and Agent agree that this covenant is not intended to constitute a lien, deed of trust, equitable mortgage, or security interest of any kind on any of Borrower's real property, and this Agreement shall not be recorded or recordable. Notwithstanding the foregoing, however, violation of this covenant by Borrower shall constitute an Event of Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.3 Dividends**. Pay any dividends or purchase, redeem or otherwise acquire or make any other distribution with respect to any of Borrower's capital stock, except (a) dividends or other distributions solely of capital stock of Borrower, (b) so long as no Event of Default has occurred and is continuing, repurchases of stock from employees or contractors upon termination of employment or services under reverse vesting or similar repurchase plans not to exceed $100,000 in any calendar year, (c) the conversion or exercise of Borrower's convertible securities into other securities pursuant to the terms of such convertible securities or otherwise in exchange thereof, (d) the purchase, redemption or other acquisition of shares of Borrower's capital stock with the proceeds received from a substantially concurrent issue of new shares of its capital stock, (e) (i) make cashless repurchases of equity interests deemed to occur upon exercise of stock options or warrants of such equity interests to represent a portion of the exercise price of such options or warrants and (ii) acquire (or withhold) their equity interests pursuant to any employee stock option or similar plan in satisfaction of withholding or similar taxes payable by any present or former officer, employee, director or member of management and make deemed repurchases in connection with the exercise of stock options, and (f) make payments of cash in lieu of fractional shares of equity interests arising out of stock dividends, splits or combinations in connection with exercises or conversions of options, warrants and other convertible securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.4 Fundamental Changes**. (a) Liquidate or dissolve; (b) enter into, or permit any of Borrower's Subsidiaries to enter into, any Change of Control; or (c) other than in connection with a Permitted Acquisition, acquire, or permit any of Borrower's Subsidiaries to acquire, all or substantially all of the capital stock or property of another Person. Notwithstanding anything to the contrary in this Section 6.4, Borrower may enter into a transaction that will constitute a Change of Control so long as: (i) the Person that results from such Change of Control (the **"<u>Surviving Entity</u>"**) shall have executed and delivered to Lender an agreement in form and substance reasonably satisfactory to Lender, containing an assumption by the Surviving Entity of the due and punctual payment and performance of all Obligations and performance and observance of each covenant and condition of Borrower in the Loan Documents; (ii) all such obligations of the Surviving Entity to Lender shall be guaranteed by any Person that directly or indirectly owns or controls 50% or more of the voting stock of the Surviving Entity; (iii) immediately after giving effect to such Change of Control, no Event of Default or, event which with the lapse of time or giving of notice or both, would result in an Event of Default shall have occurred and be continuing; and (iv) the credit risk to Lender, in its sole discretion, with respect to the Obligations and the Collateral shall not be increased. In determining whether the proposed Change of Control would result in an increased credit risk, Lender may consider, among other things, changes in Borrower's management team, employee base, access to equity markets, venture capital support, financial position and/or disposition of intellectual property rights which may reasonably be anticipated as a result of the Change of Control. In addition, (i) a Subsidiary (other than an Excluded Subsidiary) may merge or consolidate into another Subsidiary (other than an Excluded Subsidiary) and (ii) Borrower may consolidate or merge with any of Borrower's Subsidiaries provided that Borrower is the continuing or surviving Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.5 Sales of Assets**. Sell, transfer, lease, license or otherwise dispose of (a **"<u>Transfer</u>"**) any of Borrower's assets except (i) non-exclusive licenses of Intellectual Property in the ordinary course of business consistent with industry practice, provided that such licenses of Intellectual Property neither result in a legal transfer of title of the licensed Intellectual Property nor have the same effect as a sale of such Intellectual Property; (ii) Transfers of worn-out, obsolete or surplus property (each as determined by Borrower in its reasonable judgment); (iii) Transfers of Inventory in the ordinary course of business; (iv) Transfers constituting Permitted Liens; (v) Transfers permitted in Section 6.3, 6.4, 6.6 or 6.7 hereunder; (vi) Transfers of Accounts in connection with the compromise, settlement or collection thereof; (vii) Transfers of cash equivalents in the ordinary course of business (subject to the limitations set forth in Section 6.6(n) below with respect to Transfers to electroCore GmbH and electroCore, UK, Ltd.); (viii) Transfers resulting from any casualty or other insured damage to, or any taking under power of eminent domain or by condemnation or similar proceeding of, any property or asset of Borrower or any Subsidiary; (ix) leases, subleases, licenses or sublicenses of real or personal property (including Intellectual Property) in the ordinary course of business and consistent with past practice; (x) sales, transfers and other Transfers of property to the extent that (x) such property is exchanged for credit equivalent to fair market value against the purchase price of similar replacement property, or (y) the proceeds of such Transfer are promptly applied to the purchase price of such replacement property and (xi) Transfers of assets (other than Intellectual Property) for fair consideration and in the ordinary course of its business.<sup>1</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.6 Loans/Investments**. Make or suffer to exist any loans, guaranties, advances, or investments (**"<u>Investments</u>"**), except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** accounts receivable in the ordinary course of Borrower's business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** Investments in domestic certificates of deposit issued by, and other domestic investments with, financial institutions organized under the laws of the United States or a state thereof, having at least $100,000,000 in capital and a rating of at least "investment grade" or "A" by Moody's or any successor rating agency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** Investments in marketable obligations of the United States of America and in open market commercial paper given the highest credit rating by a national credit agency and maturing not more than one year from the creation thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)** temporary advances to cover incidental expenses to be incurred in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)** Investments in joint ventures, strategic alliances, licensing and similar arrangements customary in Borrower's industry and which do not require Borrower to assume or otherwise become liable for the obligations of any third party not directly related to or arising out of such arrangement or, without the prior written consent of Lender, require Borrower to transfer ownership of non-cash assets to such joint venture or other entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)** Investments in (i) one or more wholly-owned domestic Subsidiaries of Borrower, so long as in accordance with Section 6.14(a) of this Agreement, each such Person has been made a co-borrower hereunder or has executed and delivered to Lender an agreement, in form and substance reasonably satisfactory to Lender, containing a guaranty of the Obligations, and (ii) one or more wholly-owned foreign Subsidiaries of Borrower with the prior written consent of Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)** Investments approved by Lender prior to the Closing Date as shown on Schedule 6.6;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h)** Investments accepted in connection with Transfers permitted by Section 6.5;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)** loans approved by Borrower's Board of Directors to employees, officers or directors relating to the purchase of equity securities of Borrower pursuant to employee stock purchase plans or agreements approved by Borrower's Board of Directors, limited to an aggregate total of $100,000 at any time outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(j)** Investments (including debt obligations) received in connection with the bankruptcy or reorganization of customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of Borrower's business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(k)** Investments permitted under Section 6.11;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(l)** Investments consisting of notes receivable of, or prepaid royalties and other credit extensions to, customers and suppliers in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(m)** Subject to the limitations set forth in Section 6.6(n) below, investments by wholly owned Subsidiaries in other wholly owned Subsidiaries or in a Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(n)** Investments by Borrower in an Excluded Subsidiary to cover ordinary, necessary, current operating expenses in the ordinary course of business not exceeding (i) for electroCore GmbH, $10,000 in any Fiscal Year, and (ii) for electroCore UK, Ltd., an amount not to exceed three months of operating expenses and salaries for its employees outstanding at any time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(o)** Permitted Acquisitions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(p)** Other Investments not to exceed the Threshold Amount in the aggregate over the term of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.7 Transactions with Related Persons**. Directly or indirectly enter into any transaction with or for the benefit of a Related Person on terms more favorable to the Related Person than would have been obtainable in an "arms' length" dealing, except (a) sales of equity securities by Company and incurrence of Subordinated Debt for capital raising purposes, (b) Investments permitted under clauses (d), (f), (i) or (m) of Section 6.6, (c) employment and consulting arrangements, including stock options, employee compensation, and severance arrangements in the ordinary course of business, and (d) customary reimbursement and indemnity arrangements in the ordinary course of business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.8 Other Business**. Engage in any material line of business other than the business Borrower conducts as of the Closing Date and any business substantially similar or related or incidental thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.9 Financing Statements and Other Actions.** Fail to execute and deliver to Agent all financing statements, notices and other documents (including, without limitation, any filings with the United States Patent and Trademark Office and the United States Copyright Office) from time to time reasonably requested by Agent in writing (with electronic mail being sufficient) to maintain a perfected first priority security interest in the Collateral in favor of Agent, subject to Permitted Liens; perform such other acts, and execute and deliver to Agent such additional conveyances, assignments, agreements and instruments, as Agent may at any time reasonably request in in writing (with electronic mail being sufficient) in connection with the administration and enforcement of this Agreement or Agent's rights, powers and remedies hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.10 Compliance.** Become required to be registered as an "investment company" or controlled by an "investment company," within the meaning of the Investment Company Act of 1940, or become principally engaged in, or undertake as one of its important activities, the business of extending credit for the purpose of purchasing or carrying margin stock, or use the proceeds of any Loan for such purpose. Fail to meet the minimum funding requirements of ERISA, permit a Reportable Event or Prohibited Transaction, as defined in ERISA, to occur, fail to comply with the Federal Fair Labor Standards Act or violate any law or regulation, which violation could reasonably be expected to have a Material Adverse Effect or a material adverse effect on the Collateral or the priority of Agent's Lien on the Collateral, or permit any of its subsidiaries to do any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.11 Other Deposit and Securities Accounts.** Maintain any Deposit Accounts or accounts holding securities owned by Borrower except (i) Deposit Accounts and investment/securities accounts as set forth in the Supplement with respect to which an account control agreement has been executed and delivered to Agent, and (ii) other Deposit Accounts and securities/investment accounts, in each case, with respect to which Borrower and Agent shall have taken such action as Agent reasonably deems necessary to obtain a perfected first priority security interest therein, including without limitation the execution and delivery of an account control agreement, subject to Permitted Liens. The provisions of the previous sentence shall not apply to Deposit Accounts exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of Borrower's employees and identified to Lender as such.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.12 Prepayment of Indebtedness**. Prepay, redeem or otherwise satisfy in any manner prior to the scheduled repayment thereof any Indebtedness (other than the Loans and Indebtedness permitted by <u>Section 6.1</u> hereof). Notwithstanding the foregoing, the parties agree that the conversion or exchange into Borrower's equity securities of any Indebtedness (other than the Loans) shall not be prohibited by this Section 6.12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.13 Repayment of Subordinated Debt**. Repay, prepay, redeem or otherwise satisfy in any manner any Subordinated Debt, except in accordance with the terms of any subordination agreement among Borrower, Agent and the holder(s) of such Subordinated Debt. Notwithstanding the foregoing, Lender agrees that the conversion or exchange into Borrower's equity securities of any Subordinated Debt and the payment of cash in lieu of fractional shares shall not be prohibited by this Section 6.13.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.14 Subsidiaries**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** Acquire or create any wholly-owned Subsidiary, unless such Subsidiary becomes, at Lender's option, either a co-borrower hereunder or executes and delivers to Agent one or more agreements, in form and substance reasonably satisfactory to Lender, containing a guaranty of the Obligations (in consultation with the Borrower and taking tax implications into consideration) that is secured by first priority Liens on such Person's assets, subject to Permitted Liens. For clarity, the parties acknowledge and agree that Lender shall have the exclusive right to determine whether any such Person will be made a co-borrower hereunder or a guarantor of the Obligations. Prior to the acquisition or creation of any such Subsidiary, Borrower shall notify Lender thereof in writing, which notice shall contain the jurisdiction of such Person's formation and include a description of such Person's fully diluted capitalization and Borrower's purpose for its acquisition or creation of such Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** Sell, transfer, encumber or otherwise dispose of Borrower's ownership interest in any Subsidiary other than Permitted Liens and Transfers permitted pursuant to Section 6.5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** Cause or permit a Subsidiary (other than an Excluded Subsidiary) to do any of the following: (i) grant Liens on such Subsidiary's assets, except for Liens that would constitute Permitted Liens if incurred by Borrower and Liens on any property held or acquired by such Subsidiary in the ordinary course of its business securing Indebtedness incurred or assumed for the purpose of financing all or any part of the cost of acquiring such property; <u>provided</u>, that such Lien attaches solely to the property acquired with such Indebtedness and that the principal amount of such Indebtedness does not exceed one hundred percent (100%) of the cost of such property; and (ii) issue any additional Shares, except to Borrower or a wholly owned Subsidiary of Borrower (other than to an Excluded Subsidiary).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.15 Leases**. Create, incur, assume, or suffer to exist any obligation as lessee for the rental or hire of any personal property ("**Personal Property Leases**"), except for Personal Property Leases of Equipment in the ordinary course of business that do not in the aggregate require Borrower to make payments (including taxes, insurance, maintenance and similar expenses which Borrower is required to pay under the terms of any such lease) in any calendar year in excess of $100,000 in aggregate amount. For the avoidance of doubt, this Section 6.15 will not be applicable to Indebtedness otherwise permitted under Section 6.1(f) of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.16 Anti-Corruption Laws.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** Take any action that would cause a violation of any anti-corruption law, including but not limited to, the Foreign Corrupt Practices Act, the United Kingdom Bribery Act, and all other applicable anti-corruption laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** Directly or indirectly, offer, pay, give, promise or authorize the payment of any money, gift, or anything of value to any person acting in an official capacity for any government department, agency, or instrumentality, including state-owned or controlled companies or entities, and public international organizations, as well as a political party or official thereof or candidates for political office, except in compliance with applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.17 Excluded Subsidiaries**. The Excluded Subsidiaries shall not (a) have any operations other than commercial sales, research, development, quality assurance and other operations in furtherance thereof, (b) own cash and cash equivalents in an aggregate amount in excess of the amounts permitted to be invested under Section 6.6(n) at any given time, or (c) own any Intellectual Property.

**ARTICLE 7 -** EVENTS OF DEFAULT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.1 Events of Default; Acceleration**. Upon the occurrence and during the continuation of any Event of Default, the obligation of Lender to make any additional Loan shall be suspended. The occurrence and continuation of any of the following (each, an **"<u>Event of Default</u>"**) shall at the option of Agent or at the direction of Lender (1) make all sums of Basic Interest and principal, as well as any other Obligations and amounts owing under any Loan Documents, immediately due and payable without notice of default, presentment or demand for payment, protest or notice of nonpayment or dishonor or any other notices or demands, and (2) give Agent the right to exercise any other right or remedy provided by contract or applicable law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** Borrower shall fail to pay any principal or interest under this Agreement or any Note, or fail to pay any fees or other charges when due under any Loan Document, and such failure continues for three (3) Business Days or more after the same first becomes due; or an Event of Default as defined in any other Loan Document shall have occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** Any representation or warranty made, or financial statement, certificate or other document provided, by Borrower under any Loan Document, taken together with all such representations, warranties, statements, certificates and documents, shall prove to have been false or misleading in any material respect when made or deemed made herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** If there occurs any circumstance or circumstances that could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)** (i) Borrower shall fail to pay its debts generally as they become due; or (ii) Borrower shall commence any Insolvency Proceeding with respect to itself, an involuntary Insolvency Proceeding shall be filed against Borrower, or a custodian, receiver, trustee, assignee for the benefit of creditors, or other similar official, shall be appointed to take possession, custody or control of the properties of Borrower, and such involuntary Insolvency Proceeding, petition or appointment is acquiesced to by Borrower or is not dismissed within forty five (45) days; or (iii) the dissolution, winding up, or termination of the business or cessation of operations of Borrower (including any transaction or series of related transactions deemed to be a liquidation, dissolution or winding up of Borrower pursuant to the provisions of Borrower's charter documents); or (iv) Borrower shall take any corporate action for the purpose of effecting, approving, or consenting to any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)** Borrower shall be in default beyond any applicable period of grace or cure under any other agreement involving the borrowing of money, the purchase of property, the advance of credit or any other monetary liability of any kind to Lender or to any Person in an amount in excess of the Threshold Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)** Any governmental or regulatory authority shall take any judicial or administrative action, or any defined benefit pension plan maintained by Borrower shall have any unfunded liabilities, any of which, in the reasonable judgment of Lender, could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)** Any sale, transfer or other disposition of all or a substantial or material part of the assets of Borrower, including without limitation to any trust or similar entity, shall occur.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h)** Any judgment(s) singly or in the aggregate in excess of the Threshold Amount shall be entered against Borrower which remain unsatisfied, unvacated or unstayed pending appeal for fifteen (15) or more days after entry thereof (to the extent not covered by independent third-party insurance as to which the insurer does not dispute coverage).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)** Borrower shall fail to perform or observe any covenant contained in Article 6 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(j)** Borrower shall fail to perform or observe any covenant contained in Article 5 or elsewhere in this Agreement or any other Loan Document (other than a covenant which is dealt with specifically elsewhere in this Article 7) and, if capable of being cured, the breach of such covenant is not cured within 10 days after the sooner to occur of Borrower's receipt of notice of such breach from Agent or Lender or the date on which such breach first becomes known to any officer of Borrower (the "**Notice Date**"); <u>provided</u>, <u>however</u> that if such breach is not capable of being cured within such 10-day period and Borrower timely notifies Lender of such fact and Borrower diligently pursues such cure, then the cure period shall be extended to the date requested in Borrower's notice but in no event more than 30 days from the Notice Date; <u>provided</u>, <u>further</u>, that such 30-day opportunity to cure shall not apply in the case of any failure to perform or observe any covenant which has been the subject of a prior failure within the preceding 180 days or which is a willful and knowing breach by Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.2 Remedies upon Default.** Upon the occurrence and during the continuance of an Event of Default, Agent shall be entitled to, at its option, exercise any or all of the rights and remedies available to a secured party under the UCC or any other applicable law, and exercise any or all of its rights and remedies provided for in this Agreement and in any other Loan Document. The obligations of Borrower under this Agreement shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any Obligations is rescinded or must otherwise be returned by Lender or Agent upon, on account of, or in connection with, the insolvency, bankruptcy or reorganization of Borrower or otherwise, all as though such payment had not been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.3 Sale of Collateral.** Upon the occurrence and during the continuance of an Event of Default, Agent may, at the direction of Lender, sell all or any part of the Collateral, at public or private sales, to Lender or a designee of Lender, a wholesaler, retailer or investor, for cash, upon credit or for future delivery, and at such price or prices as Lender may deem commercially reasonable. To the extent permitted by law, Borrower hereby specifically waives all rights of redemption and any rights of stay or appraisal which it has or may have under any applicable law in effect from time to time. Any such public or private sales shall be held at such times and at such place(s) as Lender may determine. In case of the sale of all or any part of the Collateral on credit or for future delivery, the Collateral so sold may be retained by Agent until the selling price is paid by the purchaser, but neither Agent nor Lender shall incur any liability in case of the failure of such purchaser to pay for the Collateral and, in case of any such failure, such Collateral may be resold. Agent may, at the direction of Lender, instead of exercising its power of sale, proceed to enforce its security interest in the Collateral by seeking a judgment or decree of a court of competent jurisdiction. Without limiting the generality of the foregoing, if an Event of Default is in existence, in each case, at the direction of Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Subject to the rights of any third parties, Agent may license, or sublicense, whether general, special or otherwise, and whether on an exclusive or non-exclusive basis, any Copyrights, Patents or Trademarks included in the Collateral throughout the world for such term or terms, on such conditions and in such manner as Lender shall in its sole discretion determine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Agent may (without assuming any obligations or liability thereunder), at any time and from time to time, enforce (and shall have the exclusive right to enforce) against any licensee or sublicensee all rights and remedies of Borrower in, to and under any Copyright Licenses, Patent Licenses or Trademark Licenses and take or refrain from taking any action under any thereof, and Borrower hereby releases Agent and Lender from, and agrees to hold Agent and Lender free and harmless from and against any claims arising out of, any lawful action so taken or omitted to be taken with respect thereto other than, with respect to Agent or Lender, claims arising out of the gross negligence or willful misconduct of Agent or Lender, respectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Upon request by Agent, Borrower will execute and deliver to Agent a power of attorney, in form and substance reasonably satisfactory to Agent, for the implementation of any lease, assignment, license, sublicense, grant of option, sale or other disposition of a Copyright, Patent or Trademark. In the event of any such disposition pursuant to this <u>clause 3</u>, Borrower shall supply its know-how and expertise relating to the products or services made or rendered in connection with Patents, the manufacture and sale of the products bearing Trademarks, and its customer lists and other records relating to such Copyrights, Patents or Trademarks and to the distribution of said products, to Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) If, at any time when Lender shall determine to exercise its right to sell the whole or any part of the Shares hereunder, such Shares or the part thereof to be sold shall not, for any reason whatsoever, be effectively registered under the Securities Act (or any similar statute), then Agent may, at the direction of Lender in its sole discretion (subject only to applicable requirements of law), sell such Shares or part thereof by private sale in such manner and under such circumstances as Lender may deem necessary or advisable, but subject to the other requirements of this <u>Article 7</u>, and shall not be required to effect such registration or to cause the same to be effected. Without limiting the generality of the foregoing, in any such event, Agent may, at the direction of Lender in its discretion, (i) in accordance with applicable securities laws proceed to make such private sale notwithstanding that a registration statement for the purpose of registering such Shares or part thereof could be or shall have been filed under the Securities Act (or similar statute), (ii) approach and negotiate with a single possible purchaser to effect such sale, and (iii) restrict such sale to a purchaser who is an accredited investor under the Securities Act and who will represent and agree that such purchaser is purchasing for its own account, for investment and not with a view to the distribution or sale of such Shares or any part thereof. In addition to a private sale as provided above in this <u>Article 7</u>, if any of the Shares shall not be freely distributable to the public without registration under the Securities Act (or similar statute) at the time of any proposed sale pursuant to this <u>Article 7</u>, then Agent shall not be required to effect such registration or cause the same to be effected but, in its discretion (subject only to applicable requirements of law), may require that any sale hereunder (including a sale at auction) be conducted subject to restrictions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) as to the financial sophistication and ability of any Person permitted to bid or purchase at any such sale;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) as to the content of legends to be placed upon any certificates representing the Shares sold in such sale, including restrictions on future transfer thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) as to the representations required to be made by each Person bidding or purchasing at such sale relating to such Person's access to financial information about Borrower or any of its Subsidiaries and such Person's intentions as to the holding of the Shares so sold for investment for its own account and not with a view to the distribution thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) as to such other matters as Agent may, in its discretion, deem necessary or appropriate in order that such sale (notwithstanding any failure so to register) may be effected in compliance with the Bankruptcy Code and other laws affecting the enforcement of creditors' rights and the Securities Act and all applicable state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Borrower recognizes that Agent may be unable to effect a public sale of any or all the Shares and may be compelled to resort to one or more private sales thereof in accordance with <u>clause (4)</u> above. Borrower also acknowledges that any such private sale may result in prices and other terms less favorable to the seller than if such sale were a public sale and, notwithstanding such circumstances, agrees that any such private sale shall not be deemed to have been made in a commercially unreasonable manner solely by virtue of such sale being private. Agent shall be under no obligation to delay a sale of any of the Shares for the period of time necessary to permit the applicable Subsidiary to register such securities for public sale under the Securities Act, or under applicable state securities laws, even if Borrower and/or the Subsidiary would agree to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.4 Borrower's Obligations upon Default.** Upon the request of Agent, at the direction of Lender, after the occurrence and during the continuance of an Event of Default, Borrower will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** Assemble and make available to Agent the Collateral at such place(s) as Agent shall reasonably designate, segregating all Collateral so that each item is capable of identification; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** Subject to the rights of any lessor, permit Agent, by Agent's officers, employees, agents and representatives, to enter any premises where any Collateral is located, to take possession of the Collateral, to complete the processing, manufacture or repair of any Collateral, and to remove the Collateral, or to conduct any public or private sale of the Collateral, all without any liability of Agent or Lender for rent or other compensation for the use of Borrower's premises.

**ARTICLE 8 -** SPECIAL COLLATERAL PROVISIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.1 Compromise and Collection.** Borrower and Agent recognize that setoffs, counterclaims, defenses and other claims may be asserted by obligors with respect to certain of the Rights to Payment; that certain of the Rights to Payment may be or become uncollectible in whole or in part; and that the expense and probability of success of litigating a disputed Right to Payment may exceed the amount that reasonably may be expected to be recovered with respect to such Right to Payment. Borrower hereby authorizes Agent, after and during the continuance of an Event of Default, to compromise with the obligor, accept in full payment of any Right to Payment such amount as Agent shall negotiate with the obligor, or abandon any Right to Payment, in each case, as directed by Lender. Any such action by Agent shall be considered commercially reasonable so long as Lender has made the determination in good faith based on information known to it at the time Agent takes any such action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.2 Performance of Borrower's Obligations.** Without having any obligation to do so, upon reasonable prior notice to Borrower, Agent may, at the direction of Lender, perform or pay any obligation which Borrower has agreed to perform or pay under this Agreement, including, without limitation, the payment or discharge of taxes or Liens levied or placed on or threatened against the Collateral, provided that Lender shall fund amounts necessary to make such payments ratably in accordance with the principal amount of the Loans held by Lender. In so performing or paying, Agent and Lender shall determine the action to be taken and the amount necessary to discharge such obligations. Borrower shall reimburse Agent on demand for any amounts paid by Agent or Lender pursuant to this Section, whereupon, Agent shall promptly deliver to Lender such payments, which amounts shall constitute Obligations secured by the Collateral and shall bear interest from the date of demand at the Default Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.3 Power of Attorney.** For the purpose of protecting and preserving the Collateral and Agent's and Lender's rights under this Agreement, Borrower hereby irrevocably appoints Agent, with full power of substitution, as its attorney-in-fact with full power and authority, after the occurrence and during the continuance of an Event of Default, to do any act which Borrower is obligated to do hereunder, as directed by Lender; to exercise such rights with respect to the Collateral as Borrower might exercise, as directed by Lender; to use such Inventory, Equipment, Fixtures or other property as Borrower might use, as directed by Lender; to enter Borrower's premises; to give notice of Agent's security interest in, and to collect the Collateral, as directed by Lender; and before or after Default, to execute and file in the Borrower's name any financing statements, amendments and continuation statements, account control agreements or other Security Documents necessary or desirable to create, maintain, perfect or continue the perfection of Agent's security interests in the Collateral. Borrower hereby ratifies all that Agent shall lawfully do or cause to be done by virtue of this appointment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.4 Authorization for Agent to Take Certain Action.** The power of attorney created in Section 8.3 is a power coupled with an interest and shall be irrevocable. The powers conferred on Agent hereunder and thereunder are solely to protect its interests in the Collateral and shall not impose any duty upon Agent to exercise such powers. Agent shall be accountable only for amounts that it actually receives as a result of the exercise of such powers and in no event shall Agent or any of its directors, officers, employees, agents or representatives be responsible to Borrower for any act or failure to act, except for gross negligence or willful misconduct. After the occurrence and during the continuance of an Event of Default, Agent may exercise this power of attorney without notice to or assent of Borrower, in the name of the Borrower, or in Agent's own name, from time to time in Agent's sole discretion and at Borrower's expense. To further carry out the terms of this Agreement, after the occurrence and during the continuance of an Event of Default, Agent may, at the direction of Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** Execute any statements or documents or take possession of, and endorse and collect and receive delivery or payment of, any checks, drafts, notes, acceptances or other instruments and documents constituting Collateral, or constituting the payment of amounts due and to become due or any performance to be rendered with respect to the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** Sign and endorse any invoices, freight or express bills, bills of lading, storage or warehouse receipts; drafts, certificates and statements under any commercial or standby letter of credit relating to Collateral; assignments, verifications and notices in connection with Accounts; or any other documents relating to the Collateral, including without limitation the Records.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** Use or operate Collateral or any other property of Borrower for the purpose of preserving or liquidating Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)** File any claim or take any other action or proceeding in any court of law or equity or as otherwise deemed appropriate by Agent for the purpose of collecting any and all monies due or securing any performance to be rendered with respect to the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)** Commence, prosecute or defend any suits, actions or proceedings or as otherwise deemed appropriate by Agent for the purpose of protecting or collecting the Collateral. In furtherance of this right, upon the occurrence and during the continuance of an Event of Default, Agent may apply for the appointment of a receiver or similar official to operate Borrower's business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)** Prepare, adjust, execute, deliver and receive payment under insurance claims, and collect and receive payment of and endorse any instrument in payment of loss or returned premiums or any other insurance refund or return, and apply such amounts at Agent's sole discretion, toward repayment of the Obligations or replacement of the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.5 Application of Proceeds.** Any Proceeds and other monies or property received by Agent pursuant to the terms of this Agreement or any Loan Document may be applied as follows:

First, to Agent, the aggregate amount of all documented costs, expenses, indemnities and other amounts required to be reimbursed to Agent, in its capacity as such, until paid in full;

Second, to Agent, for the benefit of Lender, the aggregate amount of all Obligations arising on account of payments made by Agent in accordance with Section 8.2, until repaid in full;

Third, to Lender, an amount equal to the aggregate costs, expenses, indemnities or other amounts then required to be reimbursed to Lender, until paid in full;

Fourth, to Lender, an amount equal to the aggregate fees, premiums or other similar such payments due to Lender in respect of the Loans, until paid in full;

Fifth, to Lender, an amount equal to the aggregate accrued and unpaid interest on the Loans and other Obligations then due, until paid in full;

Sixth, to Lender, an amount equal to the aggregate principal outstanding in respect of the Loans then due, until paid in full;

Seventh, to Agent and Lender, an amount equal to all other Obligations due and payable to Agent and Lender, until paid in full; and

Last, the balance, if any, to Borrower or as otherwise required by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.6 Deficiency.** If the Proceeds of any disposition of the Collateral are insufficient to cover all costs and expenses of such sale and the payment in full of all the Obligations, plus all other sums required to be expended or distributed by Agent or Lender, then Borrower shall be liable for any such deficiency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.7 Agent Transfer.** Upon the transfer of all or any part of the Obligations, Agent may transfer all or part of the Collateral and shall be fully discharged thereafter from all liability and responsibility with respect to such Collateral so transferred, and the transferee shall be vested with all the rights and powers of Agent hereunder with respect to such Collateral so transferred, but with respect to any Collateral not so transferred, Agent shall retain all rights and powers hereby given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.8 Agent's Duties.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** Agent shall use reasonable care in the custody and preservation of any Collateral in its possession. Without limitation on other conduct which may be considered the exercise of reasonable care, Agent shall be deemed to have exercised reasonable care in the custody and preservation of such Collateral if such Collateral is accorded treatment substantially equal to that which Agent accords its own property, it being understood that Agent shall not have any responsibility for ascertaining or taking action with respect to calls, conversions, exchanges, maturities, declining value, tenders or other matters relative to any Collateral, regardless of whether Agent has or is deemed to have knowledge of such matters; or taking any necessary steps to preserve any rights against any Person with respect to any Collateral. Under no circumstances shall Agent be responsible for any injury or loss to the Collateral, or any part thereof, arising from any cause beyond the reasonable control of Agent .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** Agent may at any time deliver the Collateral or any part thereof to Borrower and the receipt of Borrower shall be a complete and full acquittance for the Collateral so delivered, and Agent shall thereafter be discharged from any liability or responsibility therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** Neither Agent, nor any of its directors, officers, employees, agents, attorneys or any other person affiliated with or representing Agent shall be liable for any claims, demands, losses or damages, of any kind whatsoever, made, claimed, incurred or suffered by Borrower or any other party through the ordinary negligence of Agent, or any of its directors, officers, employees, agents, attorneys or any other person affiliated with or representing Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.9 Termination of Security Interests and Loan Documents.** Upon the payment in full of the Obligations (other than inchoate indemnity obligations) and satisfaction of all Borrower's obligations under this Agreement and the other Loan Documents, and if Lender has no further obligations to make Loans in connection with their Commitments, the security interest granted hereby shall automatically terminate, all rights to the Collateral shall revert to Borrower and this Agreement and the other Loan Documents shall terminate; provided that (i) those obligations, liabilities, covenants and terms that are expressly specified herein and in any other Loan Document as surviving that respective agreement's termination, including without limitation, Borrower's indemnity obligations set forth in this Agreement, shall continue to survive notwithstanding anything to the contrary set forth herein, and (ii) nothing set forth herein shall affect or be deemed to affect those obligations, liabilities, covenants and terms set forth in any warrant instrument issued to a Lender or set forth in any other equity securities or convertible debt securities of Borrower acquired by Lender in connection with this Agreement. Upon any such termination, Agent shall return all Collateral in its possession or control to Borrower and, at Borrower's expense, execute and deliver to Borrower such documents as Borrower shall reasonably request to evidence such termination.

**ARTICLE 9 -** GENERAL PROVISIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.1 Notices**. Any notice given by any party under any Loan Document shall be in writing and personally delivered, sent by overnight courier, or United States mail, postage prepaid, or sent by facsimile, electronic mail or other authenticated message, charges prepaid, to the other party's or parties' addresses shown on the Supplement. Each party may change the address or facsimile number to which notices, requests and other communications are to be sent by giving written notice of such change to each other party. Notice given by hand delivery shall be deemed received on the date delivered; if sent by overnight courier, on the next Business Day after delivery to the courier service; if by first class mail, on the third Business Day after deposit in the U.S. Mail; and if by facsimile, on the date of transmission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.2 Binding Effect.** The Loan Documents shall be binding upon and inure to the benefit of Borrower, Lender, Agent and their respective successors and assigns; provided, however, that Borrower may not assign or transfer Borrower's rights or obligations under any Loan Document. Lender reserves the right to sell, assign, transfer, negotiate or grant participations in all or any part of, or any interest in, Lender's rights and obligations under the Loan Documents provided that, so long as no Event of Default has occurred and is continuing, Lender shall not assign any of such rights or obligations to any competitor of Borrower or to a Person determined by the Agent in its reasonable discretion to be acting in the capacity of a vulture fund or distressed debt purchaser without the consent of Borrower. In connection with any of the foregoing, Lender and Agent may disclose all documents and information which Lender and Agent now or hereafter may have relating to the Loans, Borrower, or its business, provided that any Person who receives such information shall have agreed in writing in advance to maintain the confidentiality of such information on terms no less favorable to Borrower than are set forth in Section 9.13 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.3 No Waiver**. Any waiver, consent or approval by Lender of any Event of Default or breach of any provision, condition, or covenant of any Loan Document must be in writing and shall be effective only to the extent set forth in writing. No waiver of any breach or default shall be deemed a waiver of any later breach or default of the same or any other provision of any Loan Document. No failure or delay on the part of Agent or Lender in exercising any power, right, or privilege under any Loan Document shall operate as a waiver thereof, and no single or partial exercise of any such power, right, or privilege shall preclude any further exercise thereof or the exercise of any other power, right or privilege. Lender has the right at its sole option to continue to accept interest and/or principal payments due under the Loan Documents after default, and such acceptance shall not constitute a waiver of said default or an extension of the maturity of any Loan unless Lender agrees otherwise in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.4 Rights Cumulative**. All rights and remedies existing under the Loan Documents are cumulative to, and not exclusive of, any other rights or remedies available under contract or applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.5 Unenforceable Provisions**. Any provision of any Loan Document executed by Borrower which is prohibited or unenforceable in any jurisdiction, shall be so only as to such jurisdiction and only to the extent of such prohibition or unenforceability, but all the remaining provisions of any such Loan Document shall remain valid and enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.6 Accounting Terms**. Except as otherwise provided in this Agreement, accounting terms and financial covenants and information shall be determined and prepared in accordance with GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.7 Indemnification; Exculpation**. Borrower shall pay and protect, defend and indemnify Lender, Agent and Lender's and Agent's employees, officers, directors, shareholders, affiliates, correspondents, agents and representatives (other than Lender, collectively **"<u>Indemnified Parties</u>"**) against, and hold Lender, Agent and each of such Indemnified Parties harmless from, all claims, actions, proceedings, liabilities, damages, losses, and documented expenses (including, without limitation, reasonable attorneys' fees and costs) and other amounts incurred by Lender, Agent and each of such Indemnified Parties, arising from (i) the matters contemplated by this Agreement or any other Loan Documents, (ii) any dispute between Borrower and a third party, or (iii) any contention that Borrower has failed to comply with any law, rule, regulation, order or directive applicable to Borrower's business; **provided, however**, that this indemnification shall not apply to any of the foregoing to the extent incurred as the result of Lender's, Agent's or any of such Indemnified Parties' gross negligence, bad faith or willful misconduct. This indemnification shall survive the payment and satisfaction of all of Borrower's Obligations to Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.8 Reimbursement**. Borrower shall reimburse Lender and Agent for all documented out-of-pocket costs and expenses, including without limitation reasonable and documented out-of-pocket attorneys' fees and disbursements expended or incurred by Lender and Agent in any arbitration, mediation, judicial reference, legal action or otherwise in connection with (a) the preparation and negotiation of the Loan Documents, (b) the amendment and enforcement of the Loan Documents, including without limitation during any workout, attempted workout, and/or in connection with the rendering of legal advice as to Lender's and Agent's rights, remedies and obligations under the Loan Documents, (c) collecting any sum which becomes due to Lender under any Loan Document, (d) any proceeding for declaratory relief, any counterclaim to any proceeding, or any appeal, or (e) the protection, preservation or enforcement of any rights of Lender or Agent under the Loan Documents. For the purposes of this section, attorneys' fees shall include, without limitation, fees incurred in connection with the following: (1) contempt proceedings; (2) discovery; (3) any motion, proceeding or other activity of any kind in connection with an Insolvency Proceeding; (4) garnishment, levy, and debtor and third party examinations; and (5) post-judgment motions and proceedings of any kind, including without limitation any activity taken to collect or enforce any judgment. All of the foregoing costs and expenses shall be payable promptly upon written demand (electronic mail being sufficient) by Lender or Agent, and if not paid within forty-five (45) days of presentation of invoices shall bear interest at the Default Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.9 Execution in Counterparts; Electronic Signatures**. This Agreement and the other Loan Documents may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same agreement. This Agreement and each of the other Loan Documents may be executed by electronic signatures. Borrower, Lender and Agent expressly agree to conduct the transactions contemplated by this Agreement and the other Loan Documents by electronic means (including, without limitation, with respect to the execution, delivery, storage and transfer of this Agreement and each of the other Loan Documents by electronic means and to the enforceability of electronic Loan Documents). Delivery of an executed signature page to this Agreement and each of the other Loan Documents by facsimile or other electronic mail transmission (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) shall be effective as delivery of a manually executed counterpart hereof and thereof, as applicable. The words "execution," "signed," "signature" and words of like import herein shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity and enforceability as a manually executed signature or the use of a paper-based recordkeeping systems, as the case may be, to the extent and as provided for in any applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.10 Entire Agreement**. The Loan Documents are intended by the parties as the final expression of their agreement and therefore contain the entire agreement between the parties and supersede all prior understandings or agreements concerning the subject matter hereof. This Agreement may be amended only in a writing signed by Borrower, Lender and Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.11 Governing Law and Jurisdiction**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** THIS AGREEMENT AND THE LOAN DOCUMENTS SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF CALIFORNIA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF CALIFORNIA OR OF THE UNITED STATES FOR THE NORTHERN DISTRICT OF CALIFORNIA, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF BORROWER, LENDER AND AGENT CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH OF BORROWER, LENDER AND AGENT IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS AGREEMENT OR ANY DOCUMENT RELATED HERETO. BORROWER, LENDER AND AGENT EACH WAIVE PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY CALIFORNIA LAW.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.12 Waiver of Jury Trial**. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW, BORROWER, LENDER AND AGENT EACH WAIVES ITS RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT, THE OTHER LOAN DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR ANY PARTICIPANT OR ASSIGNEE, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE. BORROWER, LENDER AND AGENT EACH AGREES THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEMS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS OR ANY PROVISION HEREOF OR THEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS. WITHOUT INTENDING IN ANY WAY TO LIMIT THE PARTIES' AGREEMENT TO WAIVE THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY, if the above waiver of the right to a trial by jury is not enforceable, including to the extent Lender or Agent seeks to enforce any judgment or takes any legal action in any other jurisdiction to realize upon the Collateral, the parties hereto agree that, with respect to any actions and proceedings with respect to which the above jury trial waiver is not enforceable, such disputes shall be decided by a reference to a private judge, mutually selected by the parties, including, if applicable, in accordance with the provisions of California Code of Civil Procedure §§ 638 through 645.1, inclusive. This Section 9.12 shall survive the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.13 Confidentiality.** Each of Lender and Agent agrees to hold in confidence all confidential information that it receives from Borrower pursuant to the Loan Documents, except for disclosure as shall be reasonably required and, in each case, subject to the same confidentiality obligations set forth herein: (a) to legal counsel and accountants for Lender and Agent (to the extent such professional advisors are subject to the same obligations of confidentiality as set forth herein); (b) to other professional advisors to Lender and Agent; (c) to regulatory officials having jurisdiction over Lender and Agent to the extent required by law; (d) to Lender's and Agent's investors and prospective investors (to the extent that such investors or prospective investors are subject to the same confidentiality obligation set forth herein), and in Lender's and Agent's SEC filings as required by law; (e) as required by law or legal process or in connection with any legal proceeding to which Lender, Agent and Borrower are adverse parties; (f) in connection with a disposition or proposed disposition of any or all of Lender's rights hereunder to any assignee or participant (to the extent that such transferee or proposed transferee is subject to the same confidentiality obligation set forth herein); (g) to Lender's and Agent's subsidiaries or Affiliates in connection with their business with Borrower (subject to the same confidentiality obligation set forth herein); (h) as required by valid order of a court of competent jurisdiction, administrative agency or governmental body, or by any applicable law, rule, regulation, subpoena, or any other administrative or legal process, or by applicable regulatory or professional standards, including in connection with any judicial or other proceeding involving Lender or Agent relating to this Agreement and the transactions contemplated hereby; and (i) as required in connection with Lender's and Agent's examination or audit. For purposes of this section, Lender, Agent and Borrower agree that "confidential information" shall mean any information regarding or relating to Borrower other than: (i) information which is or becomes generally available to the public other than as result of a disclosure by Lender or Agent in violation of this section, (ii) information which becomes available to Lender or Agent from any other source (other than Borrower) which Lender or Agent does not know is bound by a confidentiality agreement with respect to the information made available, and (iii) information that Lender or Agent knows on a non-confidential basis prior to Borrower disclosing it to Lender or Agent. In addition, Borrower agrees that Lender and Agent may upon prior written notice use Borrower's name, logo and/or trademark in connection with certain promotional materials that Lender and Agent may disseminate to the public, including, but are not limited to, brochures, internet website, press releases and any other materials relating to the fact that Lender and Agent have a financing relationship with Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.14 Lender's Receipt of Confidential Information.** Lender and Agent acknowledge that pursuant to the terms of this Agreement, Lender and Agent may receive information deemed confidential or "insider" information under the Exchange Act and other applicable law. Lender and Agent shall hold such information in confidence, and not disclose such information to any Person (other than pursuant to Section 9.13 above) until such information has been approved for release by Borrower and is released to the general public. Lender and Agent shall not use such information to purchase, sell, or otherwise arrange for the purchase or sale of shares of Borrower until such information has been approved for release by Borrower and is released to the general public.

**ARTICLE 10 -** AGENCY**

**10.1 Appointment**. Lender hereby irrevocably appoints Avenue Venture Opportunities Fund II, L.P. to act on its behalf as the administrative agent hereunder and under the other Loan Documents and authorizes the Agent to take such actions on its behalf and to exercise such powers as are delegated to the Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto.

**10.2 Indemnity.** Lender agrees to indemnify the Agent in its capacity as such (to the extent not reimbursed by Borrower and without limiting the obligation of Borrower to do so), according to its respective Commitment percentage in effect on the date on which indemnification is sought under this Section 10.2, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind whatsoever that may at any time be imposed on, incurred by or asserted against the Agent in any way relating to or arising out of, this Agreement, a Supplement, any of the other Loan Documents or any documents contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby or any action taken or omitted by the Agent under or in connection with any of the foregoing. The agreements in this Section shall survive the payment of each Loan and all other amounts payable hereunder. Agent shall not be liable for any action taken or not taken by it (i) with the consent or at the request of Lender or as Agent shall believe in good faith shall be necessary, under the circumstances or (ii) in the absence of its own gross negligence or willful misconduct.

**10.3 Agent in Its Individual Capacity.** The Person serving as the Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Agent and the term "Lender" shall, unless otherwise expressly indicated or unless the context otherwise requires, include each such Person serving as Agent hereunder in its individual capacity.

**10.4 Exculpatory Provisions.** The Agent shall have no duties or obligations except those expressly set forth herein and in the other Loan Documents. Without limiting the generality of the foregoing, the Agent shall not:

**(a)** be subject to any fiduciary or other implied duties, regardless
of whether any default or any Event of Default has occurred and is continuing;

**(b)** have any duty to take any discretionary action or exercise
any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that Agent
is required to exercise as directed in writing by Lender, provided that the Agent shall not be required to take any action that, in its
opinion or the opinion of its counsel, may expose the Agent to liability or that is contrary to any Loan Document or applicable law;
and

**(c)** except as expressly set forth herein and in the other Loan
Documents, have any duty to disclose, and the Agent shall not be liable for the failure to disclose, any information relating to the
Borrower or any of its Affiliates that is communicated to or obtained by any Person serving as Agent or any of its Affiliates in any
capacity.

**10.5 Duties**. Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default or Event of Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document or (v) the satisfaction of any condition set forth in Section 4 or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Agent.

**10.6 Reliance by Agent**. Agent may rely, and shall be fully protected in acting, or refraining to act, upon, any resolution, statement, certificate, instrument, opinion, report, notice, request, consent, order, bond or other paper or document that it has no reason to believe to be other than genuine and to have been signed or presented by the proper party or parties or, in the case of cables, telecopies and telexes, to have been sent by the proper party or parties. In the absence of its gross negligence or willful misconduct, Agent may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to Agent and conforming to the requirements of the Loan Agreement or any of the other Loan Documents. Agent may consult with counsel, and any opinion or legal advice of such counsel shall be full and complete authorization and protection in respect of any action taken, not taken or suffered by Agent hereunder or under any Loan Documents in accordance therewith. Agent shall have the right at any time to seek instructions concerning the administration of the Collateral from any court of competent jurisdiction. Agent shall not be under any obligation to exercise any of the rights or powers granted to Agent by this Agreement and the other Loan Documents at the request or direction of Lender unless Agent shall have been provided by Lender with adequate security and indemnity against the costs, expenses and liabilities that may be incurred by it in compliance with such request or direction.

**10.7 Collateral Agent**. The Agent shall also act as the "collateral agent" under the Loan Documents, and Lender hereby irrevocably appoints and authorizes the Agent to act as the agent of Lender for purposes of acquiring, holding and enforcing any and all Liens on Collateral granted by Borrower to secure any of the Obligations. Lender hereby authorizes Agent, in its capacity as collateral agent, to enter into any of the Loan Documents as secured party for purposes of acquiring, holding and enforcing all Liens on Collateral (and any other collateral from time to time securing the Obligations), and as Agent for and representative of Lender thereunder, and Lender agrees to be bound by the terms of each such document. All powers, rights and remedies under the Loan Documents may be exercised solely by Agent for the benefit of Lender and Agent in accordance with the terms thereof. In the event of a foreclosure on any of the Collateral pursuant to a public or private sale, either Agent or Lender may be the purchaser of any or all of such Collateral at any such sale and Agent, as agent for and representative of Lender, shall be entitled (subject to the proviso at the end of this sentence), for the purpose of bidding and making settlement or payment of the purchase price for all or any portion of the Collateral sold at any such public sale, to use and apply any of the Obligations as a credit on account of the purchase price for any Collateral payable by Agent at such sale; provided however, that shall not "credit bid" at any foreclosure and/or other public or private sale absent the consent of Lender. Without limiting the generality of the foregoing, Agent is hereby expressly authorized to execute any and all documents (including releases) that bind Lender with respect to (i) the Collateral and the rights of Lender with respect thereto, as contemplated by and in accordance with the provisions of the Loan Documents, and (ii) any other subordination agreement with respect to any Subordinated Debt.

**10.8 Successor Agents**. Agent may resign upon thirty (30) days' written notice to the Lender and Borrower. If Agent shall resign in its capacity under this Agreement and the other Loan Documents, then Lender shall appoint a successor agent, whereupon such successor agent shall succeed to the rights, powers and duties of Agent in its capacity, and the term "Agent" shall mean such successor agent effective upon such appointment and approval, and the former Agent's rights, powers and duties as Agent in its capacity shall be terminated, without any other or further act or deed on the part of such former Agent or any of the parties to this Agreement or Lender. If no applicable successor agent has accepted appointment as such Agent in its capacity by the date that is twenty (20) days following such retiring Agent's notice of resignation, such retiring Agent's resignation shall nevertheless thereupon become effective and Lender shall assume and perform all of the duties of such Agent hereunder until such time, if any, as Lender appoints a successor agent as provided for above. After any retiring Agent's resignation as Agent, the provisions of this Section 10 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was an Agent under this Agreement and the other Loan Documents.

**ARTICLE 11 -** DEFINITIONS**

The definitions appearing in this Agreement or any Supplement shall be applicable to both the singular and plural forms of the defined terms:

**"<u>Account</u>"** means any "account," as such term is defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest and, in any event, shall include, without limitation, all accounts receivable, book debts and other forms of obligations (other than forms of obligations evidenced by Chattel Paper, Documents or Instruments) now owned or hereafter received or acquired by or belonging or owing to Borrower (including, without limitation, under any trade name, style or division thereof) whether arising out of goods sold or services rendered by Borrower or from any other transaction, whether or not the same involves the sale of goods or services by Borrower (including, without limitation, any such obligation that may be characterized as an account or contract right under the UCC) and all of Borrower's rights in, to and under all purchase orders or receipts now owned or hereafter acquired by it for goods or services, and all of Borrower's rights to any goods represented by any of the foregoing (including, without limitation, unpaid seller's rights of rescission, replevin, reclamation and stoppage in transit and rights to returned, reclaimed or repossessed goods), and all monies due or to become due to Borrower under all purchase orders and contracts for the sale of goods or the performance of services or both by Borrower or in connection with any other transaction (whether or not yet earned by performance on the part of Borrower), now in existence or hereafter occurring, including, without limitation, the right to receive the proceeds of said purchase orders and contracts, and all collateral security and guarantees of any kind given by any Person with respect to any of the foregoing.

"**<u>Acquisition</u>**" means (a) the purchase or other acquisition by a Person or its Subsidiaries (whether by means of a merger, consolidation, amalgamation, purchase of assets, or otherwise) of all or substantially all of the assets (or any division, product line or business line of) any other Person, (b) the purchase or other acquisition (in one transaction or a series of transactions) by a Person or its Subsidiaries of a majority of the voting controlling Equity Interests in any other Person or (c) the acquisition, by way of license, assignment or other transfer, of any Intellectual Property rights or technology, including exclusive or non-exclusive licenses, covenants not to sue, or similar arrangements that provide a Person or its Subsidiaries with the right to use, develop, commercialize, or otherwise exploit such Intellectual Property or technology in the ordinary course of its business..

**"<u>Affiliate</u>"** means any Person which directly or indirectly controls, is controlled by, or is under common control with Borrower. "Control," "controlled by" and "under common control with" mean direct or indirect possession of the power to direct or cause the direction of management or policies (whether through ownership of voting securities, by contract or otherwise); provided, that control shall be conclusively presumed when any Person or affiliated group directly or indirectly owns twenty percent (20%) or more of the securities having ordinary voting power for the election of directors of a corporation or governing body of an entity.

**"<u>Agreement</u>"** means this Loan and Security Agreement and each Supplement thereto, as each may be amended or supplemented from time to time.

**"<u>Bankruptcy Code</u>"** means the Federal Bankruptcy Reform Act of 1978 (11 U.S.C. §101, <u>et seq</u>.), as amended.

**"<u>Basic Interest</u>"** means the rate of interest payable on the outstanding balance of each Loan at the applicable Designated Rate.

**"<u>Borrowing Date</u>"** means the Business Day on which the proceeds of a Loan are disbursed by Lender.

**"<u>Borrowing Request</u>"** means a written request from Borrower in substantially the form of <u>Exhibit "B"</u> to the Supplement, requesting the funding of one or more Loans on a particular Borrowing Date.

**"<u>Business Day</u>"** means any day other than a Saturday, Sunday or other day on which commercial banks in New York City or San Francisco are authorized or required by law to close.

**"<u>Change of Control</u>"** means: (a) any sale, license, or other disposition of all or substantially all of the assets of Borrower; (b) any reorganization, consolidation, merger or other transaction involving Borrower; or (c) any transaction or series of related transactions in which any Person or two or more Persons acting in concert shall have acquired by contract or otherwise, the power to control the management of Borrower, or to control the equity interests of Borrower entitled to vote for members of the Board of Directors or equivalent governing body of Borrower on a fully-diluted basis (and taking into account all such securities that such Person or Persons have the right to acquire pursuant to any option right) representing 50% or more of the combined voting power of such securities (other than in connection with a sale to investors in a transaction or series of transactions effected by Borrower for financing purposes, so long as Borrower identifies to Lender the investors prior to the closing of the transaction and provides Lender with a description of the material terms of such transactions).

**"<u>Chattel Paper</u>"** means any "chattel paper," as such term is defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest.

**"<u>Closing Date</u>"** means the date of this Agreement.

**"<u>Collateral</u>"** means all of Borrower's right, title and interest in and to the following property, whether now owned or hereafter acquired and wherever located: (a) all Receivables; (b) all Equipment; (c) all Fixtures; (d) all General Intangibles; (e) all Inventory; (f) all Investment Property; (g) all Deposit Accounts; (h) all Shares; (i) all other Goods and personal property of Borrower, whether tangible or intangible and whether now or hereafter owned or existing, leased, consigned by or to, or acquired by, Borrower and wherever located; (j) all Records; and (k) all Proceeds of each of the foregoing and all accessions to, substitutions and replacements for, and rents, profits and products of each of the foregoing.

Notwithstanding the foregoing the term "Collateral" shall not include: (i) more than sixty-five percent (65%) of the issued and outstanding capital stock, membership units or other securities entitled to vote owned or held of record by Borrower in any Subsidiary that is a controlled foreign corporation (as defined in the Internal Revenue Code) including without limitation any Excluded Subsidiary, provided that the Collateral shall include one hundred percent (100%) of the issued and outstanding non-voting capital stock of such Subsidiary; (ii) "intent-to-use" trademarks at all times prior to the first use thereof, whether by the actual use thereof in commerce, the recording of a statement of use with the United States Patent and Trademark Office or otherwise, but only to the extent the granting of a security interest in such "intent to use" trademarks would be contrary to applicable law; (iii) any contract (including any lease of real property), Instrument or Chattel Paper in which Borrower has any right, title or interest if and to the extent such contract, Instrument or Chattel Paper includes a provision containing a restriction on assignment such that the creation of a security interest in the right, title or interest of Borrower therein would be prohibited and would, in and of itself, cause or result in a default thereunder enabling another person party to such contract, Instrument or Chattel Paper to enforce any remedy with respect thereto; <u>provided, however</u>, that the foregoing exclusion shall not apply if (A) such prohibition has been waived or such other person has otherwise consented to the creation hereunder of a security interest in such contract, Instrument or Chattel Paper, or (B) such prohibition would be rendered ineffective pursuant to Sections 9-407(a) or 9-408(a) of the UCC, as applicable and as then in effect in any relevant jurisdiction, or any other applicable law (including the Bankruptcy Code or principles of equity); <u>provided, further</u>, that immediately upon the ineffectiveness, lapse or termination of any such provision, the term "Collateral" shall include, and Borrower shall be deemed to have granted a security interest in, all its rights, title and interests in and to such contract, Instrument or Chattel Paper as if such provision had never been in effect; and provided further that the foregoing exclusion shall in no way be construed so as to limit, impair or otherwise affect Agent's unconditional continuing security interest in and to all rights, title and interests of Borrower in or to any payment obligations or other rights to receive monies due or to become due under any such contract, Instrument or Chattel Paper and in any such monies and other proceeds of such contract, Instrument or Chattel Paper; or (iv) motor vehicles and other assets subject to certificates of title.

**"<u>Commitment</u>"** means the obligation of Lender to make Loans to Borrower up to the aggregate principal amount set forth in the Supplement.

**"<u>Copyright License</u>"** means any written agreement granting any right to use any Copyright or Copyright registration now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest.

**"<u>Copyrights</u>"** means all of the following now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest: (i) all copyrights, whether registered or unregistered, held pursuant to the laws of the United States, any State thereof or of any other country; (ii) all registrations, applications and recordings in the United States Copyright Office or in any similar office or agency of the United States, any State thereof or any other country; (iii) all continuations, renewals or extensions thereof; and (iv) any registrations to be issued under any pending applications.

**"<u>Default</u>"** means an event which with the giving of notice, passage of time, or both would constitute an Event of Default.

**"<u>Default Rate</u>"** means the applicable Designated Rate plus five percent (5%) per annum.

**"<u>Deposit Accounts</u>"** means any "deposit accounts," as such term is defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest.

**"<u>Designated Rate</u>"** means the rate of interest per annum described in the Supplement as being applicable to an outstanding Loan from time to time.

**"<u>Documents</u>"** means any "documents," as such term is defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest.

**"<u>Dollars</u>"** or **"<u>$</u>"** means lawful currency of the United States.

**"<u>Environmental Laws</u>"** means all federal, state or local laws, statutes, common law duties, rules, regulations, ordinances and codes, together with all administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any governmental authorities, in each case relating to environmental, health, or safety matters.

**"<u>Equipment</u>"** means any "equipment," as such term is defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest and any and all additions, substitutions and replacements of any of the foregoing, wherever located, together with all attachments, components, parts, equipment and accessories installed thereon or affixed thereto.

**"<u>Event of Default</u>"** means any event described in Section 7.1.

**"<u>Excluded Subsidiary</u>"** means each of electroCore UK, Ltd and electroCore Germany GmbH.

**"<u>Fixtures</u>"** means any "fixtures," as such term is defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest.

**"<u>GAAP</u>"** means generally accepted accounting principles and practices consistent with those principles and practices promulgated or adopted by the Financial Accounting Standards Board and the Board of the American Institute of Certified Public Accountants, their respective predecessors and successors. Each accounting term used but not otherwise expressly defined herein shall have the meaning given it by GAAP.

**"<u>General Intangibles</u>"** means any "general intangibles," as such term is defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest and, in any event, shall include, without limitation, all right, title and interest that Borrower may now or hereafter have in or under any contract, all customer lists, Copyrights, Trademarks, Patents, websites, domain names, and all applications therefor and reissues, extensions, or renewals thereof, other items of, and rights to, Intellectual Property, interests in partnerships, joint ventures and other business associations, Licenses, permits, trade secrets, proprietary or confidential information, inventions (whether or not patented or patentable), technical information, procedures, designs, knowledge, know-how, software, data bases, data, skill, expertise, recipes, experience, processes, models, drawings, materials and records, goodwill (including, without limitation, the goodwill associated with any Trademark, Trademark registration or Trademark licensed under any Trademark License), claims in or under insurance policies, including unearned premiums, uncertificated securities, money, cash or cash equivalents, deposit, checking and other bank accounts, rights to sue for past, present and future infringement of Copyrights, Trademarks and Patents, rights to receive tax refunds and other payments and rights of indemnification.

**"<u>Goods</u>"** means any "goods," as such term is defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest.

**"<u>Indebtedness</u>"** of any Person means at any date, without duplication and without regard to whether matured or unmatured, absolute or contingent: (i) all obligations of such Person for borrowed money; (ii) all obligations of such Person evidenced by bonds, debentures, notes, or other similar instruments; (iii) all obligations of such Person to pay the deferred purchase price of property or services, except trade accounts payable arising in the ordinary course of business; (iv) all obligations of such Person as lessee under capital leases; (v) all obligations of such Person to reimburse or prepay any bank or other Person in respect of amounts paid under a letter of credit, banker's acceptance, or similar instrument, whether drawn or undrawn; (vi) all obligations of such Person to purchase securities which arise out of or in connection with the sale of the same or substantially similar securities; (vii) all obligations of such Person to purchase, redeem, exchange, convert or otherwise acquire for value any capital stock of such Person or any warrants, rights or options to acquire such capital stock, now or hereafter outstanding, except to the extent that such obligations remain performable solely at the option of such Person; (viii) all obligations to repurchase assets previously sold (including any obligation to repurchase any accounts or chattel paper under any factoring, receivables purchase, or similar arrangement); (ix) obligations of such Person under interest rate swap, cap, collar or similar hedging arrangements; and (x) all obligations of others of any type described in clause (i) through clause (ix) above guaranteed by such Person.

**"<u>Insolvency Proceeding</u>"** means with respect to a Person (a) any case, action or proceeding before any court or other governmental authority relating to bankruptcy, reorganization, insolvency, liquidation, receivership, dissolution, winding-up or relief of debtors with respect to such Person, or (b) any general assignment for the benefit of creditors, composition, marshalling of assets for creditors, or other, similar arrangement in respect of such Person's creditors generally or any substantial portion of its creditors, undertaken under U.S. Federal, state or foreign law, including the Bankruptcy Code, but in each case, excluding any avoidance or similar action against such Person commenced by an assignee for the benefit of creditors, bankruptcy trustee, debtor in possession, or other representative of another Person or such other Person's estate.

**"<u>Instruments</u>"** means any "instrument," as such term is defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest.

**"<u>Intellectual Property</u>"** means all of Borrower's Copyrights, Trademarks, Patents, Licenses, trade secrets, source codes, customer lists, proprietary or confidential information, inventions (whether or not patented or patentable), technical information, procedures, designs, knowledge, know-how, software, data bases, skill, expertise, experience, processes, models, drawings, materials, records and goodwill associated with the foregoing.

**"<u>Intellectual Property Security Agreement</u>"** means any Intellectual Property Security Agreement executed and delivered by Borrower in favor of Agent, as the same may be amended, supplemented, or restated from time to time.

**"<u>Inventory</u>"** means any "inventory," as such term is defined in the UCC, wherever located, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest, and, in any event, shall include, without limitation, all inventory, goods and other personal property that are held by or on behalf of Borrower for sale or lease or are furnished or are to be furnished under a contract of service or that constitute raw materials, work in process or materials used or consumed or to be used or consumed in Borrower's business, or the processing, packaging, promotion, delivery or shipping of the same, and all finished goods, whether or not the same is in transit or in the constructive, actual or exclusive possession of Borrower or is held by others for Borrower's account, including, without limitation, all goods covered by purchase orders and contracts with suppliers and all goods billed and held by suppliers and all such property that may be in the possession or custody of any carriers, forwarding agents, truckers, warehousemen, vendors, selling agents or other Persons.

**"<u>Investment Property</u>"** means any "investment property," as such term is defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest.

**"<u>Letter-of-Credit Rights</u>"** means any "letter-of-credit rights," as such term is defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest, including any right to payment under any letter of credit.

**"<u>License</u>"** means any Copyright License, Patent License, Trademark License or other license of rights or interests now held or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest and any renewals or extensions thereof.

**"<u>Lien</u>"** means any mortgage, deed of trust, pledge, hypothecation, assignment for security, security interest, encumbrance, levy, lien or charge of any kind, whether voluntarily incurred or arising by operation of law or otherwise, against any property, any conditional sale or other title retention agreement, any lease in the nature of a security interest, and the filing of any financing statement (other than a precautionary financing statement with respect to a lease that is not in the nature of a security interest) under the UCC or comparable law of any jurisdiction.

**"<u>Loan</u>"** has the meaning specified in the Supplement.

**"<u>Loan Documents</u>"** means, individually and collectively, this Agreement, each Supplement, each Note, the Intellectual Property Security Agreement, and any other security or pledge agreement(s), and all other contracts, instruments, addenda and documents executed in connection with this Agreement or the extensions of credit which are the subject of this Agreement.

**"<u>Material Adverse Effect</u>"** or "**<u>Material Adverse Change</u>**" means (a) a material adverse change in, or a material adverse effect upon, the results of operations, business, properties, or financial condition of Borrower; (b) a material impairment of the ability of Borrower to perform under any Loan Document; or (c) a material adverse effect upon the legality, validity, binding effect or enforceability against Borrower of any Loan Document.

**"<u>Note</u>"** means a promissory note substantially in the form attached to the Supplement as <u>Exhibit "A"</u>, executed by Borrower evidencing each Loan.

**"<u>Obligations</u>"** means all debts, obligations and liabilities of Borrower to Lender or Agent now or hereafter made, incurred or created under, pursuant to or in connection with this Agreement or any other Loan Document, whether voluntary or involuntary and however arising or evidenced, whether direct or acquired by Lender or Agent by assignment or succession, whether due or not due, absolute or contingent, liquidated or unliquidated, determined or undetermined, and whether Borrower may be liable individually or jointly, or whether recovery upon such debt may be or become barred by any statute of limitations or otherwise unenforceable; and all renewals, extensions and modifications thereof; and all reasonable and documented attorneys' fees and costs incurred by Lender and Agent in connection with the collection and enforcement thereof as provided for in any such Loan Document.

**"<u>Patent License</u>"** means any written agreement granting any right with respect to any invention on which a Patent is in existence now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest.

**"<u>Patents</u>"** means all of the following property now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest: (a) all letters patent of, or rights corresponding thereto in, the United States or any other country, all registrations and recordings thereof, and all applications for letters patent of, or rights corresponding thereto in, the United States or any other country, including, without limitation, registrations, recordings and applications in the United States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof or any other country; (b) all reissues, continuations, continuations-in-part or extensions thereof; (c) all petty patents, divisionals, and patents of addition; and (d) all patents to be issued under any such applications.

"**<u>Permitted Acquisition</u>**" means an Acquisition by a Borrower that meets all of the following requirements (collectively, the "<u>Permitted Acquisition Conditions</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** the Person to be (or whose assets are to be) acquired does not oppose such Acquisition and the material line or lines of business of the Person to be acquired would constitute a Permitted Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** on the date of the consummation of such Acquisition, no Default or Event of Default shall have occurred and be continuing or would result therefrom; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** Borrower shall have given not less than thirty (30) days' prior written notice to Agent (or such later notice as agreed to by Agent in its sole discretion) identifying the applicable Acquisition and providing a general overview of such Acquisition based on information known to Borrower at such time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)** Borrower's cash balance (calculated on a *pro forma* basis after giving effect to such Acquisition) will be sufficient to sustain the operations of Borrower and its Subsidiaries (including the target of such acquisition) for no less than twelve (12) months after the date such Acquisition is consummated, as determined by Agent, in its reasonable discretion, based on its review of a *pro forma* budget submitted by Borrower in connection with such Acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)** Borrower shall have delivered to the Agent not less than ten (10) (or such shorter period as the Agent may accept) nor more than forty-five (45) days prior to the date of such acquisition together with pro forma projected financial information, copies of all material documents relating to such Acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)** At least two (2) Business Days prior to consummating the acquisition, Borrower shall have delivered a certificate stipulating that all of the Permitted Acquisition Conditions have been met.

"**<u>Permitted Business</u>**" means, with respect to Borrower, the medical device and wellness industries and activities related, complementary or incidental to, or a reasonable extension, development or expansion of, any of the foregoing.

**"<u>Permitted Lien</u>"** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** involuntary Liens which, in the aggregate, would not have a Material Adverse Effect and which in any event would not exceed, in the aggregate, the Threshold Amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** Liens for current taxes or other governmental or regulatory assessments which are not delinquent, or which are contested in good faith by the appropriate procedures and for which appropriate reserves are maintained;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** security interests on any property held or acquired by Borrower in the ordinary course of business securing Indebtedness incurred or assumed for the purpose of financing all or any part of the cost of acquiring such property; <u>provided</u>, that such Lien attaches solely to the property acquired with such Indebtedness and that the principal amount of such Indebtedness does not exceed one hundred percent (100%) of the cost of such property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)** Liens in favor of Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)** bankers' liens, rights of setoff and similar Liens incurred on deposits made in the ordinary course of business as long as an account control agreement (or equivalent) for each account in which such deposits are held in a form acceptable to Agent has been executed and delivered to Agent to the extent required under Section 6.11;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)** materialmen's, mechanics', repairmen's, warehousemen's, carriers', landlord's (subject to Section 5.9(e) hereof), employees' or other like Liens arising in the ordinary course of business and which are not delinquent for more than 45 days or are being contested in good faith by appropriate proceedings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)** any judgment, attachment or similar Lien, unless the judgment it secures exceeds the Threshold Amount and has not been discharged or execution thereof effectively stayed and bonded against pending appeal within 30 days of the entry thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h)** licenses or sublicenses of Intellectual Property in accordance with the terms of Section 6.5 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)** Liens securing Subordinated Debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(j)** Liens which have been approved by Lender in writing prior to the Closing Date, as shown on Schedule 6.2 hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(k)** the interests of licensors under inbound licenses to Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(l)** the interests of sub-lessees under subleases of real property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(m)** Liens to secure payment of workers' compensation, employment insurance, old-age pensions, social security and other like obligations incurred in the ordinary course of business (other than Liens imposed by ERISA);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(n)** deposits to secure the performance of bids, trade contracts (other than for Indebtedness), leases (other than capital lease obligations), statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature arising as a matter of law and incurred in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(o)** pledges and deposits in the ordinary course of business securing the financing (not to exceed $750,000 at any time) of the insurance premiums under insurance policies, payable to insurance carriers that provide insurance to the Borrower or any of its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(p)** Liens on cash and cash equivalents not to exceed $250,000 in the aggregate securing reimbursement obligations for letters of credit or credit cards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(q)** Liens arising from precautionary Uniform Commercial Code financing statement or similar filings made in respect of operating leases;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(r)** other Liens in an aggregate amount not to exceed One Hundred Thousand Dollars ($100,000) at any time outstanding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(s)** zoning restrictions, easements, rights of way, restrictions on use of real property and other similar encumbrances incurred in the ordinary course of business which, in the aggregate, are not substantial in amount and do not materially detract from the value of the property subject thereto or interfere with the ordinary conduct of the business of the Borrower or any of its Subsidiaries.

**"<u>Person</u>"** means any individual, sole proprietorship, partnership, joint venture, trust, unincorporated organization, association, corporation, limited liability company, institution, public benefit corporation, other entity or government (whether federal, state, county, city, municipal, local, foreign, or otherwise, including any instrumentality, division, agency, body or department thereof).

**"<u>Proceeds</u>"** means "proceeds," as such term is defined in the UCC and, in any event, shall include, without limitation, (a) any and all Accounts, Chattel Paper, Instruments, cash or other forms of money or currency or other proceeds payable to Borrower from time to time in respect of the Collateral, (b) any and all proceeds of any insurance, indemnity, warranty or guaranty payable to Borrower from time to time with respect to any of the Collateral, (c) any and all payments (in any form whatsoever) made or due and payable to Borrower from time to time in connection with any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the Collateral by any governmental authority (or any Person acting under color of governmental authority), (d) any claim of Borrower against third parties (i) for past, present or future infringement of any Copyright, Patent or Patent License or (ii) for past, present or future infringement or dilution of any Trademark or Trademark License or for injury to the goodwill associated with any Trademark, Trademark registration or Trademark licensed under any Trademark License and (e) any and all other amounts from time to time paid or payable under or in connection with any of the Collateral.

**"<u>Receivables</u>"** means all of Borrower's Accounts, Instruments, Documents, Chattel Paper, Supporting Obligations, and letters of credit and Letter-of-Credit Rights.

**"<u>Records</u>"** means all Borrower's computer programs, software, hardware, source codes and data processing information, all written documents, books, invoices, ledger sheets, financial information and statements, and all other writings concerning Borrower's business.

**"<u>Related Person</u>"** means any Affiliate of Borrower or any officer, employee, director or equity security holder of Borrower or any Affiliate.

**"<u>Rights to Payment</u>"** means all Borrower's accounts, instruments, contract rights, documents, chattel paper and all other rights to payment, including, without limitation, the Accounts, all negotiable certificates of deposit and all rights to payment under any Patent License, any Trademark License, or any commercial or standby letter of credit.

**"<u>Security Documents</u>"** means this Agreement, the Supplement hereto, the Intellectual Property Security Agreement, and any and all account control agreements, collateral assignments, chattel mortgages, financing statements, amendments to any of the foregoing and other documents from time to time executed or filed to create, perfect or maintain the perfection of Agent's Liens on the Collateral.

**"<u>Shares</u>"** means: (a) one hundred percent (100%) of the issued and outstanding capital stock, membership units or other securities owned or held of record by Borrower in any Subsidiary that is not a controlled foreign corporation (as defined in the Internal Revenue Code), and (b) 65% of the issued and outstanding capital stock, membership units or other securities entitled to vote owned or held of record by Borrower in any Subsidiary that is a controlled foreign corporation (as defined in the Internal Revenue Code) including without limitation in any Excluded Subsidiary).

**"<u>Subordinated Debt</u>"** means Indebtedness (i) approved by Lender; and (ii) where the holder's right to payment of such Indebtedness, the priority of any Lien securing the same, and the rights of the holder thereof to enforce remedies against Borrower following default have been made subordinate to the Liens of Agent and to the prior payment to Lender of the Obligations, either (A) pursuant to a written subordination agreement approved by Lender in its sole but reasonable discretion or (B) on terms otherwise approved by Lender in its sole but reasonable discretion.

**"<u>Subsidiary</u>"** means any Person a majority of the equity ownership or voting stock of which is directly or indirectly now owned or hereafter acquired by Borrower or by one or more other Subsidiaries.

**"<u>Supplement</u>"** means that certain supplement to the Loan and Security Agreement, dated as of the Closing Date, as the same may be amended or restated from time to time, and any other supplements entered into between Borrower and Lender, as the same may be amended or restated from time to time.

**"<u>Supporting Obligations</u>"** means any "supporting obligations," as such term is defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest.

**"<u>Termination Date</u>"** has the meaning specified in the Supplement.

**"<u>Threshold Amount</u>"** has the meaning specified in the Supplement.

**"<u>Trademark License</u>"** means any written agreement granting any right to use any Trademark or Trademark registration now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest.

**"<u>Trademarks</u>"** means all of the following property now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest: (a) all trademarks, tradenames, corporate names, business names, trade styles, service marks, logos, other source or business identifiers, prints and labels on which any of the foregoing have appeared or appear, designs and general intangibles of like nature, now existing or hereafter adopted or acquired, all registrations and recordings thereof, and any applications in connection therewith, including, without limitation, registrations, recordings and applications in the United States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof or any other country or any political subdivision thereof and (b) reissues, extensions or renewals thereof.

**"<u>UCC</u>"** means the Uniform Commercial Code as the same may, from time to time, be in effect in the State of California; <u>provided</u>, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection or priority of, or remedies with respect to, Agent's Lien on any Collateral is governed by the Uniform Commercial Code as enacted and in effect in a jurisdiction other than the State of California, the term "UCC" shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority or remedies and for purposes of definitions related to such provisions. Unless otherwise defined herein, terms that are defined in the UCC and used herein shall have the meanings given to them in the UCC.

*[Signature page follows]*

 

 

*[Signature pages to Loan and Security Agreement]*

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

**BORROWER:**

ELECTROCORE, INC.

---

| | |
|:---|:---|
| By: | /s/ Joshua Lev |
| Name: | Joshua Lev |
| Title: | Chief Financial Officer and Secretary |

---

NEUROMETRIX, INC.

---

| | |
|:---|:---|
| By: | /s/ Joshua Lev |
| Name: | Joshua Lev |
| Title: | Secretary |

---

**LENDER:**

AVENUE VENTURE OPPORTUNITIES FUND II, L.P.

---

| | |
|:---|:---|
| By: | Avenue Venture Opportunities Partners II, LLC |
| Its: | General Partner |
| By: | /s/ Sonia Gardner |
| Name: | Sonia Gardner |
| Title: | Member |

---

 

**AGENT:**

AVENUE VENTURE OPPORTUNITIES FUND II, L.P.

---

| | |
|:---|:---|
| By: | Avenue Venture Opportunities Partners II, LLC |
| Its: | General Partner |
| By: | /s/ Sonia Gardner<u> </u> |
| Name: | Sonia Gardner |
| Title: | Member |

---

 

*[Schedules to Loan and Security Agreement follow]*

 

 

Schedules to

Loan and Security Agreement

dated as of August 4, 2025

between

electroCore, Inc. and NeuroMetrix, Inc.

and

Avenue Venture Opportunities Fund II, L.P.

**Schedule of Exceptions**

[\*\*\*]

## Exhibit 10.2

**Exhibit 10.2**

**CERTAIN INFORMATION IDENTIFIED BY BRACKETED ASTERISKS ([\* \* \*])**

**HAS BEEN OMITTED FROM THIS EXHIBIT BECAUSE IT IS BOTH NOT MATERIAL**

**AND WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.**

**SUPPLEMENT**

**to the**

**Loan and Security Agreement**

**dated as of August 4, 2025**

**among**

**electroCore, Inc. ("Company") and NeuroMetrix, Inc.**

**("NeuroMetrix," together with Company, each, individually, a "Borrower", and collectively, "Borrower")**

**and**

**Avenue Venture Opportunities Fund II, L.P., a Delaware limited partnership ("Lender," in its capacity as a lender, and "Agent," in its capacity as administrative agent and collateral agent)**

This is a Supplement identified in the document entitled Loan and Security Agreement, dated as of August 4, 2025 (as amended, restated, supplemented and modified from time to time, the **"Loan and Security Agreement"**), by and among Borrower, Lender and Agent. All capitalized terms used in this Supplement and not otherwise defined in this Supplement have the meanings ascribed to them in Article 11 of the Loan and Security Agreement, which is incorporated in its entirety into this Supplement. In the event of any inconsistency between the provisions of the Loan and Security Agreement and this Supplement, this Supplement is controlling.

In addition to the provisions of the Loan and Security Agreement, the parties agree as follows:

**Part 1 - Additional Definitions:**

**"Amortization Period"** means the period commencing on the first day of the first full calendar month following the Interest-only Period and continuing until the Maturity Date.

**"ATM Issuance"** means an issuance by Borrower of its equity securities from time to time pursuant to any "at the market" sales agreement, by and between Borrower and the applicable counterparty thereto, or any similar "at-the-market" offering facility that may be established in the future.

**"Closing Date Market Price"** means the lower of (i) the 5-day volume-weighted average price of Borrower's common stock as calculated on the day prior to the Closing Date or (ii) the closing price of Borrower's common stock on the date prior to the Closing Date.

**"Commitment"** means, subject to the terms and conditions set forth in the Loan and Security Agreement and this Supplement, Lender's commitment to make Growth Capital Loans to Borrower up to the aggregate original principal amount of Twelve Million Dollars ($12,000,000). Notwithstanding the above, as to Lender, the obligation to make Growth Capital Loans subject to the terms and conditions set forth in the Loan and Security Agreement and this Supplement shall not exceed the amounts set forth under the headings Tranche 1 Commitment or Tranche 2 Commitment (as applicable) opposite Lender's name on Schedule 1 to this Supplement.

**"Common Stock"** means the fully paid and nonassessable shares of Borrower.

**"Designated Rate"** means, for each Growth Capital Loan, a variable rate of interest per annum equal to the greater of (i) the sum of five percent (5.00%) <u>plus</u> the Prime Rate, and (ii) twelve and one-half percent (12.50%). Changes to the Designated Rate based on changes to the Prime Rate shall be effective as of the next scheduled interest payment date immediately following such change.

**"Final Payment"** means a payment (in addition to and not a substitution for the regular monthly payments of principal plus accrued interest) equal to three and one-half percent (3.50%) of the Commitment.

**"Growth Capital Loan"** means any Loan requested by Borrower and funded by Lender under its Commitment for general corporate purposes of Borrower.

**"Interest-only Milestone"** means Borrower has achieved at least eighty-five percent (85%) of Borrower's trailing six (6) month Revenue forecast as of the period ending June 30, 2026, subject to written evidence of the same in form and content reasonably acceptable to Lender.

**"Interest-only Period"** means the period commencing on the Closing Date and continuing until the eighteenth (18<sup>th</sup>) month anniversary of the Closing Date; provided, however, that such period shall be extended for six (6) months if as of the last day of the Interest-only Period then in effect, Borrower has achieved the Interest-only Milestone; *provided, further*, however, that the Interest-only Period shall not exceed twenty-four (24) months.

**"Loan"** or **"Loans"** mean, as the context may require, individually a Growth Capital Loan, and collectively, the Growth Capital Loans.

**"Loan Commencement Date"** means, with respect to each Growth Capital Loan: (a) the first day of the first full calendar month following the Borrowing Date of such Loan if such Borrowing Date is not the first day of a month; or (b) the same day as the Borrowing Date if the Borrowing Date is the first day of a month.

**"Maturity Date"** means August 1, 2029.

**"Prepayment Fee"** means, with respect to any prepayment of the Loans:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if the prepayment occurs during the period commencing on the Closing Date and ending on (but including) the first anniversary of the Closing Date, an amount equal to the principal amount of such Loans prepaid multiplied by three percent (3.00%); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if the prepayment occurs during the period commencing on the day after the first anniversary of Closing Date and ending on (but including) the second anniversary of the Closing Date, an amount equal to the principal amount of such Loans prepaid multiplied by two percent (2.00%); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if the prepayment occurs during the period commencing on the day after the second anniversary of the Closing date and ending on (but excluding) the Maturity Date, an amount equal to the principal amount of the Loans prepaid multiplied by one percent (1.00%).

"**Primary Operating Account**" shall be the bank account set forth in Section 6 below, unless and until such account is changed in accordance with Section 5.10 of the Loan and Security Agreement.

**"Prime Rate"** is the rate of interest per annum from time to time published in the Money Rates Section of the print edition of The Wall Street Journal or any successor publication thereto as the "prime rate" then in effect; provided that, in the event such rate of interest is less than zero, such rate shall be deemed to be zero for purposes of this Supplement; and provided further that if such rate of interest, as set forth from time to time in the Money Rates Section of the print edition of The Wall Street Journal, becomes unavailable for any reason as determined by Agent, the "Prime Rate" shall mean the rate of interest per annum announced by JPMorgan Chase Bank, N.A. as its prime rate in effect at its principal office in the State of California (such announced Prime Rate not being intended to be the lowest rate of interest charged by such institution in connection with extensions of credit to debtors); provided that, in the event such rate of interest is less than zero, such rate shall be deemed to be zero for purposes of this Supplement.

**"Product Revenue"** means Revenue, excluding any licensing (other than the Teijin Licensing) or one-time partnership revenues.

**"Revenue"** means net product sales (for avoidance of doubt, any income related to licensing shall be excluded).

**"Subscription Agreement"** shall mean the subscription agreement (substantially in the form attached hereto as <u>Exhibit "D"</u>) evidencing the Equity Grant from the Company to the Lender.

"**Teijin Licensing**" means the licensing by the Company to Teijin Limited ("Teijin"), of certain exclusive rights to the Company's non-invasive vagus nerve stimulation (nVNS) technology, pursuant to an exclusive license agreement between the Company and Teijin dated March 29, 2022, under which the Company is entitled to payments, including, but not limited to, annual licensing fee payments.

**"Termination Date"** means the earlier of: (i) the date Lender may terminate making Growth Capital Loans or extending other credit pursuant to the rights of Lender under Article 7 of the Loan and Security Agreement; and (ii) December 31, 2025.

**"Threshold Amount"** means Two Hundred Fifty Thousand Dollars ($250,000.00).

**"Tranche 1"** means the initial Growth Capital Loan funded on the Closing Date in the amount of Seven Million Five Hundred Thousand Dollars ($7,500,000.00).

**"Tranche 1 Commitment"** means, subject to the terms and conditions set forth in the Loan and Security Agreement and this Supplement, the obligation of Lender, if any, to make Tranche 1 Growth Capital Loans to the Borrower on the Closing Date in a principal amount not to exceed the amount set forth under the heading Tranche 1 Commitment opposite Lender's name on Schedule 1 hereto.

**"Tranche 2"** means the Growth Capital Loans funded beginning on the Tranche 2 Start Date in the amount of Four Million Five Hundred Thousand Dollars ($4,500,000.00).

**"Tranche 2 Commitment"** means, subject to the terms and conditions set forth in the Loan and Security Agreement and this Supplement, the obligation of Lender, if any, to make Tranche 2 Growth Capital Loans to the Borrower commencing on the Tranche 2 Start Date and ending on the Tranche 2 End Date in a principal amount not to exceed the amount set forth under the heading Tranche 2 Commitment opposite Lender's name on Schedule 1 hereto.

**"Tranche 2 End Date"** means December 31, 2025.

**"Tranche 2 Milestone"** means Borrower has achieved at least Ten Million Dollars ($10,000,000.00) of trailing six (6) month Product Revenue during the period commencing on July 1, 2025 and ending on December 31, 2025, subject to written evidence of the same, in form and content reasonably acceptable to Lender.

"**Tranche 2 Start Date**" means the Closing Date, but subject to Borrower's achievement of the Tranche 2 Milestone.

**Part 2 - Additional Covenants and Conditions:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Growth Capital Loan Facility.** Subject to satisfaction of the conditions precedent specified in Sections 4.1 and Section 4.2 of the Loan and Security Agreement and this Supplement, Lender agrees to make Growth Capital Loans to Borrower under Lender's Commitment from time to time from and after the Closing Date up to and including the Termination Date in an aggregate, original principal amount up to, but not exceeding, then then-unfunded portion of Lender's Commitment, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Tranche 1**. Lender shall fund the Tranche 1 Commitment in the aggregate amount of Seven Million Five Hundred Thousand Dollars ($7,500,000) on the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) Tranche 2**. Lender shall fund the Tranche 2 Commitment in the aggregate amount of Four Million Five Hundred Thousand Dollars ($4,500,000) upon Borrower's request for a Tranche 2 Loan during the period commencing on the Tranche 2 Start Date and ending on the Tranche 2 End Date, so long as Borrower has satisfied the Tranche 2 Milestone prior to the time of submission of the Tranche 2 Loan request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c) Repayment of Growth Capital Loans**. Principal of, and interest on, each Growth Capital Loan shall be payable as set forth in a Note evidencing such Growth Capital Loan (substantially in the form attached hereto as <u>Exhibit "A"</u>), which Note shall provide substantially as follows: principal shall be fully amortized over the Amortization Period in equal, monthly principal installments plus, in each case, unpaid interest thereon at the Designated Rate, commencing after the Interest-only Period of interest-only installments at the Designated Rate. In particular, on the Borrowing Date applicable to such Growth Capital Loan, Borrower shall pay to Agent (i) if the Borrowing Date is earlier than the Loan Commencement Date, interest only at the Designated Rate, in advance, on the outstanding principal balance of the Growth Capital Loan for the period from the Borrowing Date through the last day of the calendar month in which such Borrowing Date occurs (it being understood that this clause (i) shall not apply in the case the Borrowing Date is on the same date as the Loan Commencement Date), and (ii) the first (1st) interest-only installment at the Designated Rate, in advance, on the outstanding principal balance of the Note evidencing such Loan for the ensuing month. Commencing on the first day of the second full month after the Borrowing Date and continuing on the first day of each month during the Interest-only Period thereafter, Borrower shall pay to Agent interest only at the Designated Rate, in advance, on the outstanding principal balance of the Loan evidenced by such Note for the ensuing month. Commencing on the first day of the first full month after the end of the Interest-only Period, and continuing on the first day of each consecutive calendar month thereafter, Borrower shall pay to Agent equal consecutive monthly principal installments in advance in an amount sufficient to fully amortize the Loan evidenced by such Note over the Amortization Period, plus interest at the Designated Rate for such month. On the Maturity Date, all principal and accrued interest then remaining unpaid and the Final Payment shall be due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. Prepayment**. The Growth Capital Loans may be prepaid as provided in this Section 2 only. Borrower may prepay all, but not less than all, outstanding Growth Capital Loans in whole, but not in part, at any time upon no less than five (5) Business Days' prior written notice to Lender, by tendering to Lender a cash payment in respect of such Loans in an amount determined by Lender equal to the sum of: (i) the aggregate outstanding principal amount of such Loans; (ii) the accrued and unpaid interest on such Loans as of the date of prepayment; (iii) the Prepayment Fee; and (iv) the Final Payment; provided that, if Lender has not yet exercised its rights under Section 3(d) hereof, Borrower shall provide written notice of prepayment at least ten (10) days in advance of the proposed prepayment date and Lender shall have the option, with respect to the Conversion Option, to exercise its rights pursuant to Section 3(d) hereof by delivering written notice to Borrower at least two (2) Business Days in advance of the proposed prepayment date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. Grant of Equity and Right to Invest; Conversion Right.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Grant of Equity**. Pursuant to the Subscription Agreement, as additional consideration for the making of the Commitment, Lender has earned and is entitled to receive immediately upon the execution of the Loan and Security Agreement and this Supplement, the number of fully paid and nonassessable shares of Borrower's Common Stock (the "**Equity Grant**") that equals $720,000 divided by the Closing Date Market Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) [RESERVED]**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c) Right to Invest**. Lender shall, subject to compliance with applicable securities laws, have the right, in its discretion, but not the obligation, to invest up to an aggregate of One Million Dollars ($1,000,000.00) in equity securities of Borrower on the same terms, conditions, and pricing offered by Borrower to other investors in connection with any offering of Borrower's equity securities to third party investors for capital raising purposes occurring after the Closing Date (a "**Subsequent Financing**"); provided, however, (i) if the Subsequent Financing is a public offering (other than an Underwritten Offering (as defined below)) pursuant to a registration statement under the Securities Act of 1933, as amended (the "**Securities Act**") (a "**Registered Offering**"), Borrower shall use commercially reasonable efforts to provide Lender with the opportunity to invest in such Subsequent Financing (if it is lawful to do so under applicable laws and regulations and applicable stock exchange rules without requiring stockholder approval) on the same terms, conditions and pricing afforded to other investors participating in such Subsequent Financing; and (ii) if the Subsequent Financing is an underwritten public offering pursuant to a registration statement under the Securities Act (a "**Underwritten Offering**"), Borrower shall use commercially reasonable efforts to cause the underwriters for such offering to offer Lender an allocation of securities in such offering (if it is lawful to do so under applicable laws and regulations and applicable stock exchange rules without requiring stockholder approval), on the same terms, conditions and pricing afforded to other investors participating in such offering.; <u>provided</u>, <u>further</u>, the Company shall not be required to offer Lender a seat on the Borrower's Board of Directors, even if a seat on the Board of Directors is offered to other investors at Borrower's discretion. Notwithstanding the foregoing, Lender's right to invest as set forth in this clause (c) shall automatically terminate on the Maturity Date (or such earlier date that the Commitments have terminated and the Obligations are repaid in full (other than inchoate indemnity obligations)). For the avoidance of doubt, such investment right shall not apply to (i) any future ATM Issuance, (ii) any placement of equity securities with a strategic partner/participant or charitable or educational institution and (iii) the use of securities for goods and services, including, without limitation, for legal, financial advisors and other consultants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d) Conversion Right**. Lender shall have the right, in its discretion, but not the obligation, at any time and from time to time, while the Loan is outstanding, to convert an amount of up to Two Million Five Hundred Thousand Dollars ($2,500,000.00) of the principal amount of the outstanding Growth Capital Loans (the "**Conversion Option**") into Borrower's Common Stock (the "**Conversion Right Common Stock**") at a price per share equal to one hundred twenty-five percent (125.00%) of the Closing Date Market Price. The Conversion Option will be exercised by Lender delivering a written, signed conversion notice to the Borrower in accordance with this Section 3(d), which will include (i) the date of which the conversion notice is given, (ii) a statement to the effect that Lender is exercising the Conversion Option, (iii) the aggregate principal amount of Growth Capital Loans in respect of which the Conversion Option is being exercised and the number of shares of Common Stock issued and (iv) a date on which the allotment and issuance of the shares is to take place (which shall be at least two (2) Business Days after to the date on which such notice is given). Pursuant to Section 8 of the Subscription Agreement, and subject to the terms and limitations set forth therein, the Company will prepare and file with the Securities and Exchange Commission, a registration statement on Form S-3 or, if the Company is not then eligible to register for resale securities on Form S-3, on another appropriate form of registration statement, covering the resale of all of the Conversion Right Common Stock and the Shares (as defined in the Subscription Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Commitment Fee**. Borrower shall pay to Lender, pro-rata in accordance with Lender's Commitment, a commitment fee in the amount of one percent (1.00%) of the Twelve Million Dollars ($12,000,000) in total Commitment due and payable on the Closing Date, of which Sixty Thousand Dollars ($60,000.00) has been paid by Borrower to Agent as an advance deposit prior to the date hereof. As an additional condition precedent under Section 4.1 of the Loan and Security Agreement, Lender shall have completed to its satisfaction its due diligence review of Borrower's business and financial condition and prospects, and Lender's Commitment shall have been approved by its investment committee. If this condition is not satisfied, the Sixty Thousand Dollars ($60,000.00) advance deposit previously paid by Borrower shall be refunded. Except as set forth in this Section 4, the Commitment Fee is not refundable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. Documentation Fee Payment***.* On the Closing Date, Borrower shall reimburse Lender and Agent pursuant to Section 9.8(a) of the Loan and Security Agreement for (i) its reasonable attorneys' fees, costs and expenses incurred in connection with the preparation and negotiation of the Loan Documents and (ii) Lender's and Agent's costs and filing fees related to perfection of its Liens in the Collateral in any jurisdiction in the United States which the same is located, recording a copy of the Intellectual Property Security Agreement with the United States Patent and Trademark Office or the United States Copyright Office, as applicable, and confirming the priority of such Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. Borrower's Primary Operating Account and Wire Transfer Instructions:**

---

| | |
|:---|:---|
| Institution Name: | [\*\*\*] |
| Address: | [\*\*\*] |
| ABA No.: | [\*\*\*] |
| Contact Name: | [\*\*\*] |
| Phone No.: | [\*\*\*] |
| E-mail: | [\*\*\*] |
| Account Title: | [\*\*\*] |
| Account No.: | [\*\*\*] |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. Debits to Account for ACH Transfers.** For purposes of Sections 2.2 and 5.10 of the Loan and Security Agreement, the Primary Operating Account shall be the bank account set forth in Section 6 above, unless and until such account is changed in accordance with Section 5.10 of the Loan and Security Agreement. Borrower hereby agrees that the Growth Capital Loans will be advanced to the account specified above and regularly scheduled payments of principal, interest and fees due to each Lender will be automatically debited by each Lender from the same account. Notwithstanding the above, Agent shall provide Borrower five (5) Business Days' notice of any fees to be charged and offer Borrower an opportunity to respond and approve of such fees prior to debiting the Primary Operating Account for reimbursement. Borrower hereby confirms that the bank at which the Primary Operating Account is maintained uses that same ABA Number for incoming wires transfers to the Primary Operating Account and outgoing ACH transfers from the Primary Operating Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. Financial Covenants.** Borrower shall at all times comply with the following financial covenants:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Revenue**: Commencing with the period ending September 30, 2025, Borrower shall at all times achieve Revenue in an amount not less than seventy-five percent (75%) of Borrower's trailing five (5) month Revenue forecast, measured as of September 30, 2025, and as of the end of each month thereafter, in the amounts set forth on Schedule 2 attached hereto. As applicable, for the month ending January 31, 2028, and thereafter, the minimum trailing five (5) month Revenue forecast amounts shall be determined by Agent and Lender based upon the amounts set forth in Borrower's financial projections submitted to Agent pursuant to Sections 5.2(e) and 5.2(f) of the Loan and Security Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) Liquidity**: Commencing on the Closing Date, Borrower shall at all times maintain at least Two Million Dollars ($2,000,000.00) in unrestricted cash held in Deposit Accounts located in the United States as to which an account control agreement has been executed and delivered to Agent, tested monthly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9. Post-Closing Covenants.** Borrower shall use commercially reasonable efforts to deliver to Agent the following items:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** On or before the fifteenth (15<sup>th</sup>) day after the Closing Date, Borrower shall provide a Waiver (in accordance with Section 5.9(e) of the Agreement) from the landlord of the premises located at 200 Forge Way, Suite 205, Rockaway, NJ 07866.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** On or before the seventh (7<sup>th</sup>) Business Day after the Closing Date, Borrower shall deliver a fully executed account control agreement covering its Deposit Accounts held with Comerica Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** On or before the fifth (5<sup>th</sup>) Business Day after the Closing Date, each Borrower shall deliver to Agent a fully executed Intellectual Property Security Agreement with completed Exhibits thereto.

**Part 3 - Additional Representations:**

Borrower represents and warrants that as of the Closing Date and, subject to any written updates of the information set forth below by Borrower to each Lender and Agent, each Borrowing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Its
 chief executive office is located at: 200 Forge Way, Suite 205, Rockaway, NJ 07866

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Its
 Equipment is located at: 200 Forge Way, Suite 205, Rockaway, NJ 07866

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Its
 Inventory is located at: 200 Forge Way, Suite 205, Rockaway, NJ 07866

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Its
 Records are located at: 200 Forge Way, Suite 205, Rockaway, NJ 07866

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) In
 addition to its chief executive office, Borrower maintains offices or operates its business
 at the following locations:

Electrocore UK, Suite FF10, Brooklands House, 58 Marlborough Road, Lancing, West Sussex, BN15 8AF

Eletrocore Germany (dormant entity; no current location)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) Other
 than its full corporate name, Borrower has conducted business using the following trade names
 or fictitious business names: N/A

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) (i)
 The Delaware state corporation identification number for the Company is: [\*\*\*]

&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;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Delaware state corporation identification number for NeuroMetrix is: [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h) (i)
 The U.S. federal tax identification number for the Company is: [\*\*\*]

&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;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The U.S. federal tax identification number for NeuroMetrix is: [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) Its
 Subsidiary, Electrocore UK, Ltd., has assets located at Quest 90, Quest Park, Silk Road off
 Wheatley Hall Road, Doncaster S Yorkshire DN2 4LT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j) Including
 Borrower's Primary Operating Account identified in Section 6 above, Borrower maintains
 the following Deposit Accounts and investment accounts:

---

| | |
|:---|:---|
| Institution Name: | [\*\*\*] |
| Address: | [\*\*\*] |
| ABA No.: | [\*\*\*] |
| Contact Name: | [\*\*\*] |
| Phone No.: | [\*\*\*] |
| E-mail: | [\*\*\*] |
| Account Title: | [\*\*\*] |
| Account No.: | [\*\*\*] |
| Account No.: | [\*\*\*] |
| Account No.: | [\*\*\*] |

---

---

| | |
|:---|:---|
| Institution Name: | [\*\*\*] |
| Address: | [\*\*\*] |
| ABA No.: | [\*\*\*] |
| Contact Name: | [\*\*\*] |
| Phone No.: | [\*\*\*] |

---

E-mail: [\*\*\*] <br> Account Title: [\*\*\*] <br> Account No.: [\*\*\*]

---

| | |
|:---|:---|
| Institution Name: | [\*\*\*] |
| Address: |  |
| ABA No.: | [\*\*\*] |
| Contact Name: | [\*\*\*] |
| Phone No.: |  |
| E-mail: | [\*\*\*] |
| Account Title: | [\*\*\*] |
| Account No.: | [\*\*\*] |
| Account Title: | [\*\*\*] |
| Account No.: | [\*\*\*] |

---

**Part 4 - Additional Loan Documents:**

---

| | |
|:---|:---|
| Form of Promissory Note | Exhibit "A" |
| Form of Borrowing Request | Exhibit "B" |
| Form of Compliance Certificate | Exhibit "C" |
| Form of Subscription Agreement | Exhibit "D" |

---

[*Remainder of this page intentionally left blank; signature page follows*]

[*Signature page to Supplement to Loan and Security Agreement*]

 

IN WITNESS WHEREOF, the parties have executed this Supplement as of the date first above written.

---

| | |
|:---|:---|
| **BORROWER:** | **BORROWER:** |
| **ELECTROCORE, INC.** | **ELECTROCORE, INC.** |
| By: | /s/ Joshua Lev |
| Name: | Joshua Lev |
| Title: | CFO and Secretary |

---

---

| | |
|:---|:---|
| Address for Notices: | 200 Forge Way, Ste 205 |
|  | Rockaway, NJ 07866 |
|  | Attn: Joshua Lev |
|  | Fax # ___-___-____ |
|  | Phone # [\*\*\*] |

---

---

| | |
|:---|:---|
| **NEUROMETRIX, INC.** | **NEUROMETRIX, INC.** |
| By: | /s/ Joshua Lev |
| Name: | Joshua Lev |
| Title: | Secretary |

---

---

| | |
|:---|:---|
| Address for Notices: | 200 Forge Way, Ste 205 |
|  | Rockaway, NJ 07866 |
|  | Attn: Joshua Lev |
|  | Fax # ___-___-____ |
|  | Phone # [\*\*\*] |

---

[*Signature page to Supplement to Loan and Security Agreement—continued*]

---

| | |
|:---|:---|
| **AGENT:** | **AGENT:** |
| **AVENUE VENTURE OPPORTUNITIES FUND II, L.P.** | **AVENUE VENTURE OPPORTUNITIES FUND II, L.P.** |
| By: | Avenue Venture Opportunities Partners II, LLC |
| Its: | General Partner |

---

---

| | |
|:---|:---|
| By: | /s/ Sonia Gardner |
| Name: | Sonia Gardner |
| Title: | Member |

---

---

| | |
|:---|:---|
| Address for Notices: | 11 West 42<sup>nd</sup> Street, 9<sup>th</sup> Floor |
|  | New York, New York 10036 |
|  | Attn: Todd Greenbarg, Senior Managing Director |
|  | Email: [\*\*\*]; [\*\*\*] |
|  | Phone: [\*\*\*] |

---

---

| | |
|:---|:---|
| **LENDER:** | **LENDER:** |
| **AVENUE VENTURE OPPORTUNITIES FUND II, L.P**. | **AVENUE VENTURE OPPORTUNITIES FUND II, L.P**. |
| By: | Avenue Venture Opportunities Partners II, LLC |
| Its: | General Partner |

---

---

| | |
|:---|:---|
| By: | /s/ Sonia Gardner |
| Name: | Sonia Gardner |
| Title: | Member |

---

---

| | |
|:---|:---|
| Address for Notices: | 11 West 42<sup>nd</sup> Street, 9<sup>th</sup> Floor |
|  | New York, New York 10036 |
|  | Attn: Todd Greenbarg, Senior Managing Director |
|  | Email: [\*\*\*] |
|  | Phone: [\*\*\*] |

---

**EXHIBIT "A"**

**FORM OF PROMISSORY NOTE**

[Note No. X-XXX]

---

| | |
|:---|:---|
| $____________________ | ________], 20__ |

---

Each of the undersigned (each individually, a "Borrower" and collectively, "<u>Borrower</u>") promises to pay to the order of Avenue Venture Opportunities Fund II, L.P. ("<u>Lender</u>"), at such place as Lender may designate in writing, in lawful money of the United States of America, the principal sum of ______________________________ Dollars ($__________), with interest thereon from the date hereof until maturity, whether scheduled or accelerated, at a variable rate per annum equal to the sum of to the greater of (i) the sum of five percent (5.00%) <u>plus</u> the Prime Rate, and (ii) twelve and one-half percent (12.50%) (the "<u>Designated Rate</u>"), according to the payment schedule described herein, except as otherwise provided herein. In addition, on the Maturity Date, Borrower promises to pay to the order of Lender (i) all principal and accrued interest then remaining unpaid and (ii) the Final Payment (as defined in the Supplement to the Loan Agreement (as defined herein)).

This Note is one of the Notes referred to in, and is entitled to all the benefits of, a Loan and Security Agreement, dated as of August 4, 2025, among Borrower, Lender and Agent (as the same may be amended, restated or supplemented from time to time, the "<u>Loan Agreement</u>"). Each capitalized term not otherwise defined herein shall have the meaning set forth in the Loan Agreement. The Loan Agreement contains provisions for the acceleration of the maturity of this Note upon the happening of certain stated events.

Principal of and interest on this Note shall be payable as provided under Section 2 of Part 2 of the Supplement to the Loan Agreement.

This Note may be prepaid only as permitted under Section 2 of Part 2 of the Supplement to the Loan Agreement.

Any unpaid payments of principal or interest on this Note shall bear interest from their respective maturities, whether scheduled or accelerated, at a rate per annum equal to the Default Rate, compounded monthly. Borrower shall pay such interest on demand.

Interest, charges and fees shall be calculated for actual days elapsed on the basis of a 360-day year, which results in higher interest, charge or fee payments than if a 365-day year were used. In no event shall Borrower be obligated to pay interest, charges or fees at a rate in excess of the highest rate permitted by applicable law from time to time in effect.

If Borrower is late in making any scheduled payment under this Note by more than five (5) days, Borrower agrees to pay a "late charge" of five percent (5%) of the installment due, but not less than fifty dollars ($50) for any one such delinquent payment. This late charge may be charged by Lender for the purpose of defraying the expenses incidental to the handling of such delinquent amounts. Borrower acknowledges that such late charge represents a reasonable sum considering all of the circumstances existing on the date of this Note and represents a fair and reasonable estimate of the costs that will be sustained by Lender due to the failure of Borrower to make timely payments. Borrower further agrees that proof of actual damages would be costly and inconvenient. Such late charge shall be paid without prejudice to the right of Lender to collect any other amounts provided to be paid or to declare a default under this Note or any of the other Loan Documents or from exercising any other rights and remedies of Lender.

[*Signature page to Promissory Note*]

This Note shall be governed by, and construed in accordance with, the laws of the State of California, excluding those laws that direct the application of the laws of another jurisdiction.

Borrower's execution and delivery of this Note via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) shall constitute effective execution and delivery of this Note and agreement to and acceptance of the terms hereof for all purposes. The fact that this Note is executed, signed, stored or delivered electronically shall not prevent the assignment or transfer by Lender of this Note pursuant to the terms of the Loan Agreement or the enforcement of the terms hereof. Physical possession of the original of this Note or any paper copy thereof shall confer no special status to the bearer thereof. In no event shall an original ink-signed paper copy of this Note be required for any exercise of Lender's rights hereunder.

---

| |
|:---|
| ELECTROCORE, INC. |
| By: |
| Name: |
| Its: |

---

---

| |
|:---|
| NEUROMETRIX, INC. |
| By: |
| Name: |
| Its: |

---

**EXHIBIT "B"**

**FORM OF BORROWING REQUEST**

[__], 202__

Avenue Venture Opportunities Fund II, L.P.

11 West 42nd Street, 9th Floor

New York, New York 10036

Re: <u>ELECTROCORE, INC.</u>

Ladies and Gentlemen:

Reference is made to the Loan and Security Agreement, dated as of August 4, 2025 (as amended, restated or supplemented from time to time, the "<u>Loan Agreement</u>"; the capitalized terms used herein as defined therein), among Avenue Venture Opportunities Fund II, L.P. ("<u>Avenue</u>"), as administrative agent and collateral agent (in such capacity, "<u>Agent</u>"), and as a lender, (in such capacity, "<u>Lender</u>"), and electroCore, Inc. and NeuroMetrix, Inc. (each, a "<u>Borrower</u>", and collectively, "<u>Borrower</u>").

The undersigned is the ____________________ of Borrower and hereby requests on behalf of Borrower a Loan under the Loan Agreement, and in that connection certifies (without incurring personal liability) as follows:

1. The amount of the proposed Loan is _______________________ Dollars ($_________________). The Borrowing Date of the proposed Loan is ___________________ (the "<u>Borrowing Date</u>").

(a) On
 the Borrowing Date,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Avenue will wire $[_________] less fees and expenses to be deducted on the Borrowing Date of (a) [$___] in respect to the Commitment Fee, of which $[__] has been paid to Avenue prior to the date hereof, (b) $[_________] in respect to the interest fee, and (c) $[_________] in respect to the legal fees for net proceeds of $[___________], and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Avenue 2 will wire $[_________] less fees and expenses to be deducted on the Borrowing Date of (a) [$___] in respect to the Commitment Fee, of which [$___] has been paid to Avenue 2 prior to the date hereof, (b) $[_________] in respect to the interest fee, and (c) $[_________] in respect to the legal fees for net proceeds of $[___________]

to Borrower pursuant to the following wire instructions:

---

| | |
|:---|:---|
| Institution Name: | [\*\*\*] |
| Address: | [\*\*\*] |
| ABA No.: | [\*\*\*] |
| Contact Name: | [\*\*\*] |
| Phone No.: | [\*\*\*] |
| E-mail: | [\*\*\*] |
| Account Title: | [\*\*\*] |
| Account No.: | [\*\*\*] |

---

(b) On the Borrowing Date, (i) Avenue will wire $[__________], and (ii) Avenue 2 will wire $[__________] to GCA Law Partners LLP for fees and expenses pursuant to the following wire instructions:

---

| | |
|:---|:---|
| Institution Name: | [\*\*\*] |
| ABA No.: | [\*\*\*] |
| Account Title: | [\*\*\*] |
| Account No.: | [\*\*\*] |
| Reference: |  |
| Confirm remittance: | [\*\*\*] |

---

2. As of this date, no Default or Event of Default has occurred and is continuing, or will result from the making of the proposed Loan, the representations and warranties of Borrower contained in Article 3 of the Loan Agreement and Part 3 of the Supplement are true and correct in all material respects other than those representations and warranties expressly referring to a specific date which are true and correct in all material respects as of such date, and the conditions precedent described in Sections 4.1 and/or 4.2 of the Loan Agreement and Part 2 of the Supplement, as applicable, have been met.

3. No event has occurred that has had or could reasonably be expected to have a Material Adverse Change.

4. Borrower's most recent financial statements, financial projections or business plan dated ____________, as reviewed by Borrower's Board of Directors, are enclosed herewith in the event such financial statements, financial projections or business plan have not been previously provided to Agent.

*Remainder of this page intentionally left blank; signature page follows*

 

 

[*Signature page to Borrowing Request*]

Borrower shall notify you promptly before the funding of the Loan if any of the matters to which I have certified above shall not be true and correct on the Borrowing Date.

---

| | |
|:---|:---|
| Very truly yours, | Very truly yours, |
| ELECTROCORE, INC. | ELECTROCORE, INC. |
| By: |  |
| Name: | Joshua Lev |
| Title: | CFO and Secretary |

---

---

| | |
|:---|:---|
| NEUROMETRIX, INC. | NEUROMETRIX, INC. |
| By: |  |
| Name: | Joshua Lev |
| Title: | Secretary |

---

**EXHIBIT "C"**

**FORM OF**

**COMPLIANCE CERTIFICAT<u>E</u>**

Avenue Venture Opportunities Fund II, L.P.

11 West 42nd Street, 9th Floor

New York, New York 10036

Email: [\*\*\*]; [\*\*\*]; [\*\*\*]; [\*\*\*]; [\*\*\*].

Re: <u>ELECTROCORE, INC.</u>

Ladies and Gentlemen:

Reference is made to the Loan and Security Agreement, dated as of August 4, 2025 (as may be supplemented, amended and modified from time to time, the "<u>Loan Agreement</u>," the capitalized terms used herein as defined therein), among Avenue Venture Opportunities Fund II, L.P. ("<u>Avenue</u>"), as administrative agent and collateral agent (in such capacity, "<u>Agent</u>"), and as a lender (in such capacity, "<u>Lender</u>"), and electroCore, Inc. and NeuroMetrix, Inc. (each, a "<u>Borrower</u>", and collectively, "<u>Borrower</u>").

The undersigned authorized representative of Borrower hereby certifies in such capacity (and without incurring personal liability) that in accordance with the terms and conditions of the Loan Agreement, (i) no Default or Event of Default has occurred and is continuing, except as noted below, and (ii) Borrower is in compliance for the financial reporting period ending ____________________________ with all required financial reporting under the Loan Agreement, except as noted below. Attached herewith are the required documents supporting the foregoing certification. The undersigned authorized representative of Borrower further certifies in such capacity that: (a) the accompanying financial statements have been prepared in accordance with Borrower's past practices applied on a consistent basis, or in such manner as otherwise disclosed in writing to Agent, throughout the periods indicated; and (b) the financial statements fairly present in all material respects the financial condition and operating results of Borrower and its Subsidiaries, if any, as of the dates, and for the periods, indicated therein, subject to the absence of footnotes and normal year-end audit adjustments (in the case of interim monthly financial statements), except as explained below.

***Please provide the following requested information and***

***indicate compliance status by circling (or otherwise indicating) Yes/No under "Included/Complies":***

---

| | | |
|:---|:---|:---|
| REPORTING REQUIREMENT | REQUIRED | INCLUDED/COMPLIES |
| Balance Sheet, Income Statement & Cash Flow Statement | Monthly, within 30 days | YES / NO / N/A |
| Operating Budgets, 409(A) Valuations &Updated Capitalization Tables | As modified | YES / NO / N/A |
| Annual Financial Statements | Annually, within 90 day of fiscal year-end | YES / NO / N/A |
| Board Packages | As modified | YES / NO / N/A |
| Date of most recent Board-approved<br> budget/plan ________________ |  |  |

---

Any change in budget/plan since version most recently delivered to Agent YES / NO / N/A <br> *If Yes, please attach*

Date of most recent capitalization table: ____________________

Any changes in capitalization table since version most recently delivered to Agent?: YES / NO / N/A <br> *If Yes, please attach a copy of latest capitalization table*

---

| | | | |
|:---|:---|:---|:---|
| FINANCIAL COVENANT | REQUIRED | ACTUAL | INCLUDED/COMPLIES |
| Minimum Revenue (at least 75% trailing 5-month forecast) |  |  |  |
| Period ending |  |  |  |
| ● [\*\*\*] | $[\*\*\*] | $— | YES / NO |
| ● [\*\*\*] | $[\*\*\*] | $— | YES / NO |
| ● [\*\*\*] | $[\*\*\*] | $— | YES / NO |
| ● [\*\*\*] | $[\*\*\*] | $— | YES / NO |
| ● [\*\*\*] | $[\*\*\*] | $— | YES / NO |
| ● [\*\*\*] | $[\*\*\*] | $— | YES / NO |
| ● [\*\*\*] | $[\*\*\*] | $— | YES / NO |
| ● [\*\*\*] | $[\*\*\*] | $— | YES / NO |
| ● [\*\*\*] | $[\*\*\*] | $— | YES / NO |
| ● [\*\*\*] | $[\*\*\*] | $— | YES / NO |
| ● [\*\*\*] | $[\*\*\*] | $— | YES / NO |
| ● [\*\*\*] | $[\*\*\*] | $— | YES / NO |
| ● [\*\*\*] | $[\*\*\*] | $— | YES / NO |
| ● [\*\*\*] | $[\*\*\*] | $— | YES / NO |
| ● [\*\*\*] | $[\*\*\*] | $— | YES / NO |
| ● [\*\*\*] | $[\*\*\*] | $— | YES / NO |
| ● [\*\*\*] | $[\*\*\*] | $— | YES / NO |
| ● [\*\*\*] | $[\*\*\*] | $— | YES / NO |
| ● [\*\*\*] | $[\*\*\*] | $— | YES / NO |
| ● [\*\*\*] | $[\*\*\*] | $— | YES / NO |
| ● [\*\*\*] | $[\*\*\*] | $— | YES / NO |
| ● [\*\*\*] | $[\*\*\*] | $— | YES / NO |
| ● [\*\*\*] | $[\*\*\*] | $— | YES / NO |
| ● [\*\*\*] | $[\*\*\*] | $— | YES / NO |
| ● [\*\*\*] | $[\*\*\*] | $— | YES / NO |
| ● [\*\*\*] | $[\*\*\*] | $— | YES / NO |
| ● [\*\*\*] | $[\*\*\*] | $— | YES / NO |
| ● [\*\*\*] | $[\*\*\*] | $— | YES / NO |

---

[Amounts to be determined for [\*\*\*] and thereafter based on Borrower's projections]

---

| | | |
|:---|:---|:---|
| Minimum Liquidity | $2000000 | $YES / NO / N/A |

---

<u>EQUITY & CONVERTIBLE NOTE FINANCINGS</u>

***Please provide the following information (if applicable) regarding Borrower's most-recent equity and/or convertible note financing each time this Certificate is delivered to Agent***

Date of Last Round Raised: _____________

Has there been any new financing since the last Compliance Certificate submitted? YES / NO

*If "YES" please attach a copy of the Capitalization Table*

Date Closed: ______________ Series: _________ Per Share Price: $_________________

Amount Raised: _______________ Post Money Valuation: _____________

Any stock splits since date of last report? YES / NO

*If yes, please provide any information on stock splits which would affect valuation*:

Any dividends since date of last report? YES / NO

*If yes, please provide any information on dividends which would affect valuation:* 

Any unusual terms? (i.e., Anti-dilution, multiple preference, etc.) YES / NO

*If yes, please explain:*

<u>ACCOUNT CONTROL AGREEMENTS</u>

Pursuant to Section 6.11 of the Loan Agreement, Borrower represents and warrants that: (i) as of the date hereof, it maintains only those deposit and investment accounts set forth below; and (ii) to the extent required by Section 6.11 of the Loan Agreement, a control agreement has been executed and delivered to Agent with respect to each such account ***[Note: If Borrower has established any new account(s) since the date of the last compliance certificate, please so indicate]***.

Deposit Accounts

<u>Name of Institution</u> <u>Account Number</u> <u>Control Agt. In place? </u> <u>Complies</u> <u>New Account</u> <br> 1.) [_______] [_______] YES / NO YES / NO YES / NO <br> 2.) YES / NO YES / NO YES / NO

Investment Accounts

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Name of Institution | Account Number | Control Agt. <br> In place?  | Complies | New <br> Account |
| 1.) |  |  | YES / NO | YES / NO | YES / NO |
| 2.) |  |  | YES / NO | YES / NO | YES / NO |
| 3.) |  |  | YES / NO | YES / NO | YES / NO |
| 4.) |  |  | YES / NO | YES / NO | YES / NO |

---

<u>AGREEMENTS WITH PERSONS IN POSSESSION OF TANGIBLE COLLATERAL</u>

Pursuant to Section 5.9(e) of the Loan Agreement, Borrower represents and warrants that: (i) as of the date hereof, tangible Collateral is located at the addresses set forth below; and (ii) to the extent required by Section 5.9(e) of the Loan Agreement, a Waiver has been executed and delivered to Agent, or such Waiver has been waived by Agent, ***[Note: If Borrower has located Collateral at any new location since the date of the last compliance certificate, please so indicate]*.**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Location of Collateral | Waiver <br> In place?  | Complies? | New <br> Location? |
| 1.) |  | $YES / NO | YES / NO | YES / NO |
| 2.) |  | $YES / NO | YES / NO | YES / NO |
| 3.) |  | $YES / NO | YES / NO | YES / NO |
| 4.) |  | $YES / NO | YES / NO | YES / NO |

---

SUBSIDIARIES AND OTHER PERSONS

Pursuant to Section 6.14(a) of the Loan Agreement, Borrower represents and warrants that: (i) as of the date hereof, it has directly or indirectly acquired or created, or it intends to directly or indirectly acquire or create, each Subsidiary or other Person described below; and (ii) such Subsidiary or Person has been made a co-borrower under the Loan Agreement or a guarantor of the Obligations ***[Note: If Borrower has acquired or created any Subsidiary since the date of the last compliance certificate, please so indicate]*.**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Name: | Jurisdiction of <br> formation or organization: | Co-borrower <br> or guarantor? | Complies? | New <br> Subsidiary <br> or Person? |
| 1.) |  |  | YES / NO | YES / NO | YES / NO |
| 2.) |  |  | YES / NO | YES / NO | YES / NO |
| 3.) |  |  | YES / NO | YES / NO | YES / NO |
| 4.) |  |  | YES / NO | YES / NO | YES / NO |

---

<u>EXPLANATIONS</u>

[*Remainder of this page intentionally left blank; signature page follows*]

[*Signature page to Compliance Certificate*]

---

| |
|:---|
| Very truly yours, |
| ELECTROCORE, INC. |
| By: |
| Name: |
| Title: |

---

**EXHIBIT "D"**

**FORM OF**

**SUBSCRIPTION AGREEMENT**

**[See Exhibit 10.3]**

**SCHEDULE 1**

**LENDER COMMITMENTS**

**<u>TRANCHE 1 COMMITMENTS</u>**

---

| | | |
|:---|:---|:---|
| **Lender**<br>| **Tranche 1 Commitment** | **Tranche 1 Commitment**<br> **Percentage** |
| Avenue Venture Opportunities Fund II, L.P.  | $7500000 | 100% |
| TOTAL COMMITMENTS | $7500000 | 100% |

---

**<u>TRANCHE 2 COMMITMENTS</u>**

---

| | | |
|:---|:---|:---|
| **Lender**<br>| **Tranche 2 Commitment** | **Tranche 2 Commitment**<br> **Percentage** |
| Avenue Venture Opportunities Fund II, L.P.  | $4500000 | 100% |
| TOTAL COMMITMENTS | $4500000 | 100% |

---

**SCHEDULE 2**

**REVENUE COVENANT (Part 2, Section 8(a))**

<u>75% OF MINIMUM TRAILING 5-MONTH REVENUE FORECAST</u>

<u>Required Amounts</u>

---

| | |
|:---|:---|
| Five Month Period Ending | 75% of Minimum Trailing 5-month Revenue Forecast<br>|
| [\*\*\*] | $[\*\*\*] |
| [\*\*\*] | $[\*\*\*] |
| [\*\*\*] | $[\*\*\*] |
| [\*\*\*] | $[\*\*\*] |
| [\*\*\*] | $[\*\*\*] |
| [\*\*\*] | $[\*\*\*] |
| [\*\*\*] | $[\*\*\*] |
| [\*\*\*] | $[\*\*\*] |
| [\*\*\*] | $[\*\*\*] |
| [\*\*\*] | $[\*\*\*] |
| [\*\*\*] | $[\*\*\*] |
| [\*\*\*] | $[\*\*\*] |
| [\*\*\*] | $[\*\*\*] |
| [\*\*\*] | $[\*\*\*] |
| [\*\*\*] | $[\*\*\*] |
| [\*\*\*] | $[\*\*\*] |
| [\*\*\*] | $[\*\*\*] |
| [\*\*\*] | $[\*\*\*] |
| [\*\*\*] | $[\*\*\*] |
| [\*\*\*] | $[\*\*\*] |
| [\*\*\*] | $[\*\*\*] |
| [\*\*\*] | $[\*\*\*] |
| [\*\*\*] | $[\*\*\*] |
| [\*\*\*] | $[\*\*\*] |
| [\*\*\*] | $[\*\*\*] |
| [\*\*\*] | $[\*\*\*] |
| [\*\*\*] | $[\*\*\*] |
| [\*\*\*] | $[\*\*\*] |

---

## Exhibit 10.3

**Exhibit 10.3**

**CERTAIN INFORMATION IDENTIFIED BY BRACKETED ASTERISKS ([\* \* \*])**

**HAS BEEN OMITTED FROM THIS EXHIBIT BECAUSE IT IS BOTH NOT MATERIAL**

**AND WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.**

**SUBSCRIPTION AGREEMENT**

electroCore, Inc.

200 Forge Way, Suite 205

Rockaway, New Jersey 07866

Ladies and Gentlemen:

This Subscription Agreement (this "<u>Subscription Agreement</u>") is being entered into as of the date set forth on the signature page hereto, between electroCore, Inc., a Delaware corporation (the "<u>Company</u>"), and Avenue Venture Opportunities Fund II, L.P. ("<u>Avenue</u>" or the "<u>Investor</u>").

This Subscription Agreement is entered into in connection with that certain Loan and Security Agreement between the Company and the Investor, in its capacity as the Lender and the Agent (as such terms are defined in the LSA (as defined below)), dated as of even date herewith, as supplemented by the supplement (the "<u>Supplement</u>") to the Loan and Security Agreement, between the Company and the Investor (collectively, the "<u>LSA</u>").

In consideration of the foregoing, and the mutual representations, warranties and covenants, and subject to the conditions, set forth herein, and intending to be legally bound hereby, the Investor and the Company acknowledge and agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Subscription</u>. Investor hereby irrevocably subscribes to purchase from the Company in a private placement the number of shares of common stock, par value $0.001 per share ("<u>Common Stock</u>"), of the Company set forth on the signature page of this Subscription Agreement (the "<u>Shares</u>") on the terms and subject to the conditions provided for herein. Investor acknowledges and agrees that the Company reserves the right to accept or reject the Investor's subscription for the Shares for any reason or for no reason, in whole or in part, at any time prior to acceptance, and the same shall be deemed to be accepted by the Company only when this Subscription Agreement is signed by a duly authorized person by or on behalf of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Closing</u>. The closing of the issuance of the Shares (the "<u>Closing</u>") is contingent upon the substantially concurrent consummation of the transactions contemplated by the LSA (the "<u>Transactions</u>"), and accordingly, the Closing shall occur substantially concurrently with and conditioned upon the prior execution of the LSA and the effectiveness of the Transactions (such date, the "<u>Closing Date</u>"). On the Closing Date, the Company shall issue the number of Shares to Investor set forth on the signature page to this Subscription Agreement, and shall subsequently cause such Shares to be registered in book entry form in the name of Investor on the Company's share register; provided, however, that the Company's obligation to issue the Shares to Investor is contingent upon the Company having received the proceeds of Tranche 1 pursuant to the LSA and the Supplement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Closing Conditions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The obligation of the parties hereto to consummate the issuance of the Shares pursuant to this Subscription Agreement is subject to the following conditions:

&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;&nbsp;&nbsp;&nbsp;&nbsp;(i) the execution of the LSA and the Supplement;

&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;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no applicable governmental authority shall have enacted, issued, promulgated, enforced or entered any judgment, order, law, rule or regulation (whether temporary, preliminary or permanent) which is then in effect and has the effect of making consummation of the transactions contemplated hereby illegal or otherwise restraining or prohibiting consummation of the transactions contemplated hereby; and

&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;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all conditions precedent to the closing of the Transactions shall have been satisfied or waived (as determined by the parties thereto and other than those conditions which, by their nature, are to be fulfilled at the closing of the Transaction, including to the extent that any such condition is dependent upon the consummation of the issuance of the Shares pursuant to this Subscription Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The obligation of the Company to consummate the issuance and sale of the Shares pursuant to this Subscription Agreement shall be subject to the condition that all representations and warranties of Investor contained in this Subscription Agreement are true and correct in all material respects (other than representations and warranties that are qualified as to materiality or Material Adverse Effect, which representations and warranties shall be true in all respects) at and as of the Closing Date, and consummation of the Closing shall constitute a reaffirmation by Investor of each of the representations and warranties of Investor contained in this Subscription Agreement as of the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The obligation of Investor to consummate the purchase of the Shares pursuant to this Subscription Agreement shall be subject to the condition that all representations and warranties of the Company contained in this Subscription Agreement shall be true and correct in all material respects (other than representations and warranties that are qualified as to materiality or Material Adverse Effect (as defined herein), which representations and warranties shall be true in all respects) at and as of the Closing Date, and consummation of the Closing shall constitute a reaffirmation by the Company of each of the representations and warranties of the Company contained in this Subscription Agreement as of the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Further Assurances</u>. The parties hereto shall execute and deliver such additional documents and take such additional actions as the parties reasonably may deem to be reasonably practical and necessary in order to consummate the subscription as contemplated by this Subscription Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Company Representations and Warranties</u>. The Company represents and warrants to Investor that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware. The Company has all corporate power and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Subscription Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As of the Closing Date, the Shares will be duly authorized and, when issued and delivered to Investor in accordance with the terms of this Subscription Agreement and the LSA, the Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights created under the Company's certificate of incorporation (as amended to the Closing Date) or under the General Corporation Law of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Subscription Agreement has been duly authorized, executed and delivered by the Company and, assuming that this Subscription Agreement constitutes the valid and binding agreement of Investor, this Subscription Agreement is enforceable against the Company in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, or (ii) principles of equity, whether considered at law or equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The issuance and sale of the Shares and the compliance by the Company with all of the provisions of this Subscription Agreement and the consummation of the transactions contemplated herein will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Company pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Company is a party or by which the Company is bound or to which any of the property or assets of the Company is subject that would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Company, taken as a whole (a "<u>Material Adverse Effect</u>") or materially affect the validity of the Shares or the legal authority of the Company to comply in all material respects with the terms of this Subscription Agreement; (ii) result in any violation of the provisions of the organizational documents of the Company; or (iii) result in any violation of any statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Company or any of their properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Shares or the legal authority of the Company to comply in all material respects with this Subscription Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Investor Representations and Warranties</u>. Investor represents and warrants to the Company that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Investor (i) is a "qualified institutional buyer" (as defined in Rule 144A under the Securities Act of 1933, as amended (the "<u>Securities Act</u>")) or an institutional "accredited investor" (within the meaning of Rule 501(a) under the Securities Act), in each case, satisfying the applicable requirements set forth on <u>Schedule A</u>, (ii) is acquiring the Shares only for its own account and not for the account of others, or if the Investor is subscribing for the Shares as a fiduciary or agent for one or more investor accounts, each owner of each such account is independently a "qualified institutional buyer", the Investor has full investment discretion with respect to each such account, and the full power and authority to make the acknowledgements, representations and agreements herein on behalf of each owner of each such account, and (iii) is not acquiring the Shares with a view to, or for offer or sale in connection with, any distribution thereof in violation of the Securities Act or the securities law of any other jurisdiction (and shall provide the requested information set forth on <u>Schedule A</u>). Investor is not an entity formed for the specific purpose of acquiring the Shares and is an "institutional account" as defined by FINRA Rule 4512(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Investor acknowledges and agrees that the Shares are being offered in a transaction not involving any public offering within the meaning of the Securities Act and that the Shares have not been registered under the Securities Act. Investor acknowledges and agrees that the Shares may not be offered, resold, transferred, pledged or otherwise disposed of by Investor absent an effective registration statement under the Securities Act except (i) to the Company or a subsidiary thereof, (ii) to non-U.S. persons pursuant to offers and sales that occur outside the United States within the meaning of Regulation S under the Securities Act or (iii) pursuant to another applicable exemption from the registration requirements of the Securities Act, and in each case in accordance with any applicable securities laws of the states of the United States and other applicable jurisdictions, and that any certificates or book entry records representing the Shares shall contain a restrictive legend to such effect. Investor acknowledges and agrees that the Shares will be subject to the foregoing securities law transfer restrictions and, as a result of these transfer restrictions, Investor may not be able to readily offer, resell, transfer, pledge or otherwise dispose of the Shares and may be required to bear the financial risk of an investment in the Shares for an indefinite period of time. Investor acknowledges and agrees that the Shares will not immediately be eligible for offer, resale, transfer, pledge or disposition pursuant to Rule 144 promulgated under the Securities Act until at least six months from the Closing Date. Investor acknowledges and agrees that it has been advised to consult legal, tax and accounting advisors prior to making any offer, resale, transfer, pledge or disposition of any of the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Investor acknowledges that there have been no representations, warranties, covenants and agreements made to Investor by or on behalf of the Company, any of its affiliates or any control persons, officers, directors, employees, partners, agents or representatives of any of the foregoing or any other person or entity, expressly or by implication, other than those representations, warranties, covenants and agreements of the Company expressly set forth in Section 5 of this Subscription Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Investor's acquisition and holding of the Shares will not constitute or result in a non-exempt prohibited transaction under Section 406 of the Employee Retirement Income Security Act of 1974, as amended, Section 4975 of the Internal Revenue Code of 1986, as amended, or any applicable similar law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Investor acknowledges and agrees that Investor has received such information as Investor deems necessary in order to make an investment decision with respect to the Shares, including, without limitation, with respect to the Company, the business of the Company, and its subsidiaries. Without limiting the generality of the foregoing, Investor acknowledges that it has reviewed the Company's filings with the U.S. Securities and Exchange Commission (the "<u>SEC</u>"). Investor acknowledges and agrees that Investor and Investor's legal, accounting, regulatory, tax and other professional advisor(s), have had the full opportunity to ask such questions, receive such answers and obtain such information as Investor and such Investor's professional advisor(s), have deemed necessary to make an investment decision with respect to the Shares. In making its decision to purchase the Shares, the Investor represents that it has sought and relied solely upon the independent investigation made by the Investor, the Investor's own sources of information, investment analysis and due diligence (including professional advice the Investor deems appropriate) with respect to the Shares and the business, condition (financial and otherwise), management, operations, properties and prospects of the Company and including but not limited to all business, legal, regulatory, accounting, credit, tax and other economic matters. Without limiting the generality of the foregoing, the Investor has not relied on any statements or other information provided by or on behalf of anyone, other than the representations and warranties contained in this Subscription Agreement in making its decision to invest in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Investor became aware of this offering of the Shares solely by means of direct contact between Investor and the Company or a representative of the Company, and the Shares were offered to Investor solely by direct contact between Investor and the Company or a representative of the Company. The Investor did not become aware of this offering of the Shares, nor were the Shares offered to the Investor, by any other means. Investor acknowledges that the Shares (i) were not offered, and are not being purchased, as a result of any advertisement, article, notice or other communication regarding the Shares published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or, any other general solicitation or general advertisement, and (ii) are not being offered in a manner involving a public offering under, or in a distribution in violation of, the Securities Act, or any state securities laws. Investor acknowledges that it is not relying upon, and has not relied upon, any statement, representation or warranty made by any person, firm or corporation (including without limitation, the Company, any of its affiliates or any control persons, officers, directors, employees, partners, agents or representatives of any of the foregoing), other than the representations and warranties of the Company contained in Section 5 of this Subscription Agreement, in making its investment or decision to invest in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Investor acknowledges that it is aware that there are substantial risks incident to the purchase and ownership of the Shares, including those set forth in the Company's filings with the SEC. Investor has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of an investment in the Shares, and Investor has sought such accounting, legal and tax advice as Investor has considered necessary to make an informed investment decision and the Investor has made its own assessment and has satisfied itself concerning relevant tax or other economic considerations relative to its purchase of the Shares. The Investor acknowledges that Investor shall be responsible for any of the Investor's tax liabilities that may arise as a result of the transactions contemplated by this Subscription Agreement, and that the Company has not provided any tax advice or any other representation or guarantee regarding the tax consequences of the transactions contemplated by the Subscription Agreement. Investor is able to sustain a complete loss on its investment in the Shares, has no need for liquidity with respect to its investment in the Shares and has no reason to anticipate any change in circumstances, financial or otherwise, which may cause or require any sale or distribution of all or any part of the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Investor is acting independently and not in concert with any other person or entity in connection with its investment in the Company, and is not part of a group (as defined in Section 13(d) of the Exchange Act) with respect to the Company's securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Alone, or together with any professional advisor(s), Investor has adequately analyzed and fully considered the risks of an investment in the Shares and determined that the Shares are a suitable investment for Investor and that Investor is able at this time and in the foreseeable future to bear the economic risk of a total loss of Investor's investment in the Company. Investor acknowledges specifically that a possibility of total loss exists.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Investor acknowledges that no federal or state agency has passed upon or endorsed the merits of the offering of the Shares or made any findings or determination as to the fairness of this investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Investor has been duly formed or incorporated and is validly existing and is in good standing under the laws of its jurisdiction of formation or incorporation, with power and authority to enter into, deliver and perform its obligations under this Subscription Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The execution, delivery and performance by Investor of this Subscription Agreement are within the powers of Investor, have been duly authorized and will not constitute or result in a breach or default under or conflict with any order, ruling or regulation of any court or other tribunal or of any governmental commission or agency, or any agreement or other undertaking, to which Investor is a party or by which Investor is bound, and will not violate any provisions of Investor's organizational documents, including, without limitation, its incorporation or formation papers, bylaws, indenture of trust or partnership or operating agreement, as may be applicable. The signature of the Investor on this Subscription Agreement is genuine, and the signatory has legal competence and capacity to execute the same or the signatory has been duly authorized to execute the same, and, this Subscription Agreement has been duly executed and delivered by the Investor and, assuming that this Subscription Agreement constitutes the valid and binding agreement of the Company, this Subscription Agreement constitutes a legal, valid and binding obligation of Investor, enforceable against Investor in accordance with its terms except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, and (ii) principles of equity, whether considered at law or equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Investor is not (i) a person or entity named on the List of Specially Designated Nationals and Blocked Persons administered by the U.S. Treasury Department's Office of Foreign Assets Control ("<u>OFAC</u>") or in any Executive Order issued by the President of the United States and administered by OFAC ("<u>OFAC List</u>"), or a person or entity prohibited by any OFAC sanctions program, (ii) a Designated National as defined in the Cuban Assets Control Regulations, 31 C.F.R. Part 515, or (iii) a non-U.S. shell bank or providing banking services indirectly to a non-U.S. shell bank (each, a "<u>Prohibited Investor</u>"). Investor agrees to provide law enforcement agencies, if requested thereby, such records as required by applicable law, provided that Investor is permitted to do so under applicable law. If Investor is a financial institution subject to the Bank Secrecy Act (31 U.S.C. Section 5311 et seq.) (the "<u>BSA</u>"), as amended by the USA PATRIOT Act of 2001 (the "<u>PATRIOT Act</u>"), and its implementing regulations (collectively, the "<u>BSA/PATRIOT Act</u>"), Investor maintains policies and procedures reasonably designed to comply with applicable obligations under the BSA/PATRIOT Act. To the extent required, it maintains policies and procedures reasonably designed for the screening of its investors against the OFAC sanctions programs, including the OFAC List. To the extent required by applicable law, Investor maintains policies and procedures reasonably designed to ensure that the funds held by Investor and used to purchase the Shares were legally derived and were not obtained, directly or indirectly, from a Prohibited Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) No foreign person (as defined in 31 C.F.R. Part 800.224) in which the national or subnational governments of a single foreign state have a substantial interest (as defined in 31 C.F.R. Part 800.244) will acquire a substantial interest in the Company as a result of the purchase and sale of Shares hereunder such that a declaration to the Committee on Foreign Investment in the United States would be mandatory under 31 C.F.R. Part 800.401, and no foreign person will have control (as defined in 31 C.F.R. Part 800.208) over the Company from and after the Closing as a result of the purchase and sale of Shares hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Investor has not taken any of the actions set forth in, and is not subject to, the disqualification provisions of Rule 506(d)(1) of the Securities Act. Neither Investor nor any of its Rule 506(d) Related Parties is a "bad actor" within the meaning of Rule 506(d) of the Securities Act. For purposes of this Subscription Agreement, a "Rule 506(d) Related Party" shall mean a person or entity covered by the "Bad Actor disqualification" provision of Rule 506(d) of the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) In connection with the issue and purchase of the Shares, no person, firm or corporation has acted as Investor's financial advisor or fiduciary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Legend.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Shares may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Shares other than pursuant to a registration statement effective under the Securities Act with a current prospectus or Rule 144, or to the Company, the Company may require the transferor thereof to provide to the Company an opinion of counsel at the expense of the transferor, selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company and its counsel, to the effect that such transfer does not require registration of such transferred Shares under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Investor agrees, so long as is required by this Section 7, book entry notations evidencing the Shares shall bear a restrictive legend, substantially in the following form:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "ACT") AND ARE "RESTRICTED SECURITIES" AS DEFINED IN RULE 144 PROMULGATED UNDER THE ACT. THE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED, OR OTHERWISE DISTRIBUTED OR TRANSFERRED EXCEPT (i) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR (ii) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE ACT, AND, IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION, UNLESS THE COMPANY AND TRANSFER AGENT HAVE RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO EACH OF THEM THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE ACT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Registration Rights.</u> Within 60 days from the Closing Date, the Company will prepare and file with the SEC a registration statement on Form S-3 or, if the Company is not then eligible to register for resale securities on Form S-3, on another appropriate form of registration statement (the "Resale Registration Statement"), covering the resale of all of the Conversion Right Common Stock, as such term is defined in the Supplement, and the Shares for a secondary offering to be made on a continuous basis pursuant to Rule 415(a)(1)(i) under the Securities Act. The Company will use commercially reasonable efforts to cause the Resale Registration Statement to be declared effective under the Securities Act as promptly as reasonably possible after the filing thereof, and will use its commercially reasonable efforts to keep the Resale Registration Statement continuously effective under the Securities Act, until the earliest of (i) the fourth anniversary of the Closing Date, (ii) the date on which Investor ceases to hold any Conversion Right Common Stock or Shares, or (iii) the first date on which Investor is able to sell all of such Conversion Right Common Stock and Shares under Rule 144 within 90 days without limitation as to the amount of such securities that may be sold by such Investor. The Investor agrees to disclose its ownership to the Company upon request to assist it in making the determination described above. Investor acknowledges and agrees that the Company may suspend the use of the Resale Registration Statement if it determines that the Resale Registration Statement and related prospectus contain a material misstatement or omission. The Investor agrees to furnish and provide to the Company such information reasonably requested by the Company in connection with the preparation of the Resale Registration Statement and related prospectus and any amendments or supplements thereto, and understands that such information will be relied upon by the Company and its counsel in connection with the preparation or amendment of the Resale Registration Statement and the related prospectus and any amendments or supplements thereto. The Company covenants that, as of the effective date of the Resale Registration Statement, as of the date of any prospectus or prospectus supplement forming a part thereof, and as of the date of any sale of Conversion Common Stock and Shares pursuant thereto, the Resale Registration Statement (including any amendments or supplements thereto and prospectuses contained therein) shall not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein, in light of the circumstances in which they were made (in the case of any prospectus or prospectus supplement, in the light of the circumstances under which they were made), not misleading. Notwithstanding the foregoing, the Company makes no covenant or agreement with respect to any statements or omissions made in reliance upon and in conformity with information relating to Investor furnished in writing to the Company by or on behalf of the Investor for use in the Resale Registration Statement, any related prospectus, or any amendment or supplement thereto. The Company shall have no liability for any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact in the Resale Registration Statement or any related prospectus or any amendment or supplement thereto to the extent that such statement or omission was made in reliance upon and in conformity with written information furnished to the Company by or on behalf of any Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Termination</u>. This Subscription Agreement shall terminate and be void and of no further force and effect, and all rights and obligations of the parties hereunder shall terminate without any further liability on the part of any party in respect thereof, if any of the conditions to Closing set forth in Section 3 of this Subscription Agreement are (i) not satisfied or waived prior to the Closing (and if the failure to so satisfy such condition is capable of being cured prior to the Closing, such failure shall not have been cured by the 30<sup>th</sup> calendar day following receipt of written notice from the party claiming such condition has not been satisfied) or (ii) not capable of being satisfied on the Closing and, in each case of (i) and (ii), as a result thereof, the transactions contemplated by this Subscription Agreement will not be and are not consummated at the Closing (collectively, the "<u>Termination Events</u>"); provided that nothing herein will relieve any party from liability for any willful breach hereof prior to the time of termination, and each party will be entitled to any remedies at law or in equity to recover losses, liabilities or damages arising from any such willful breach. Upon the occurrence of any Termination Event, this Subscription Agreement shall be void and of no further effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Neither this Subscription Agreement nor any rights that may accrue to Investor hereunder (other than the Shares acquired hereunder, if any) may be transferred or assigned without the express written consent of the Company, and any purported transfer or assignment without such consent should be *void ab initio*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company may request from Investor such additional information as the Company may deem necessary to evaluate the eligibility of Investor to acquire the Shares, and the Investor shall provide such information as may reasonably be requested. Investor acknowledges that the Company may file a copy of this Subscription Agreement, as well as the LSA, with the SEC as an exhibit to a periodic report or a registration statement of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Investor acknowledges that the Company and others will rely on the acknowledgments, understandings, agreements, representations and warranties contained in this Subscription Agreement. Prior to the Closing, Investor agrees to promptly notify the Company if any of the acknowledgments, understandings, agreements, representations and warranties set forth in Section 6 above are no longer accurate. Investor acknowledges and agrees that each purchase by Investor of Shares from the Company and each exercise of its right to receive Conversion Right Common Stock pursuant to the LSA will constitute a reaffirmation of the acknowledgments, understandings, agreements, representations and warranties herein (as modified by any such notice) by Investor as of the time of such purchase or exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company is entitled to rely upon this Subscription Agreement and is irrevocably authorized to produce this Subscription Agreement or a copy hereof to any interested party in any administrative or legal proceeding or official inquiry with respect to the matters covered hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All of the agreements, representations and warranties made by each party hereto in this Subscription Agreement shall survive the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) This Subscription Agreement may not be modified, waived or terminated (other than pursuant to the terms of Section 8 above) except by an instrument in writing, signed by each of the parties hereto. No failure or delay of either party in exercising any right or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such right or power, or any course of conduct, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the parties hereunder are cumulative and are not exclusive of any rights or remedies that they would otherwise have hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) This Subscription Agreement (including the schedule hereto) constitutes the entire agreement, and supersedes all other prior agreements, understandings, representations and warranties, both written and oral, among the parties, with respect to the subject matter hereof. Except as set forth in Section 8, Section 10(c), Section 10(d), Section 10(f), this Section 10(g), the last sentence of Section 10(k) and Section 11 with respect to the persons specifically referenced therein, this Subscription Agreement shall not confer any rights or remedies upon any person other than the parties hereto, and their respective successor and assigns, and the parties hereto acknowledge that such persons so referenced are third party beneficiaries of this Subscription Agreement for the purposes of, and to the extent of, the rights granted to them, if any, pursuant to the applicable provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Except as otherwise provided herein, this Subscription Agreement shall be binding upon, and inure to the benefit of the parties hereto and their heirs, executors, administrators, successors, legal representatives, and permitted assigns, and the agreements, representations, warranties, covenants and acknowledgments contained herein shall be deemed to be made by, and be binding upon, such heirs, executors, administrators, successors, legal representatives and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If any provision of this Subscription Agreement shall be adjudicated by a court of competent jurisdiction to be invalid, illegal or unenforceable, the validity, legality or enforceability of the remaining provisions of this Subscription Agreement shall not in any way be affected or impaired thereby and shall continue in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) This Subscription Agreement may be executed in one or more counterparts (including by facsimile or electronic mail or in.pdf) and by different parties in separate counterparts, with the same effect as if all parties hereto had signed the same document. All counterparts so executed and delivered shall be construed together and shall constitute one and the same agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The parties hereto acknowledge and agree that irreparable damage would occur in the event that any of the provisions of this Subscription Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent breaches of this Subscription Agreement, without posting a bond or undertaking and without proof of damages, to enforce specifically the terms and provisions of this Subscription Agreement, this being in addition to any other remedy to which such party is entitled at law, in equity, in contract, in tort or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) This Subscription Agreement shall be governed by and construed in accordance with the laws of the State of Delaware (regardless of the laws that might otherwise govern under applicable principles of conflicts of laws thereof) as to all matters (including any action, suit, litigation, arbitration, mediation, claim, charge, complaint, inquiry, proceeding, hearing, audit, investigation or reviews by or before any governmental entity related hereto), including matters of validity, construction, effect, performance and remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Any action, suit or proceeding between or among the parties hereto, whether arising in contract, tort or otherwise, arising in connection with any disagreement, dispute, controversy or claim arising out of or relating to this Subscription Agreement or any related document or any of the transactions contemplated hereby or thereby ("<u>Legal Dispute</u>") shall be brought only to the exclusive jurisdiction of the courts of the State of Delaware or the federal courts located in the State of Delaware, and each party hereto hereby consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding that is brought in any such court has been brought in an inconvenient forum. During the period a Legal Dispute that is filed in accordance with this Section 10(m) is pending before a court, all actions, suits or proceedings with respect to such Legal Dispute or any other Legal Dispute, including any counterclaim, cross-claim or interpleader, shall be subject to the exclusive jurisdiction of such court. A final judgment in any action, suit or proceeding described in this Section 10(m) following the expiration of any period permitted for appeal and subject to any stay during appeal shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by applicable laws. EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT TO TRIAL BY JURY ON ANY CLAIMS OR COUNTERCLAIMS ASSERTED IN ANY LEGAL DISPUTE RELATING TO THIS SUBSCRIPTION AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY AND FOR ANY COUNTERCLAIM RELATING THERETO. IF THE SUBJECT MATTER OF ANY SUCH LEGAL DISPUTE IS ONE IN WHICH THE WAIVER OF JURY TRIAL IS PROHIBITED, NO PARTY HERETO NOR ANY PERSON ASSERTING RIGHTS AS A THIRD PARTY BENEFICIARY SHALL ASSERT IN SUCH LEGAL DISPUTE A NONCOMPULSORY COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS SUBSCRIPTION AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. FURTHERMORE, NO PARTY HERETO NOR ANY PERSON ASSERTING RIGHTS AS A THIRD PARTY BENEFICIARY SHALL SEEK TO CONSOLIDATE ANY SUCH LEGAL DISPUTE WITH A SEPARATE ACTION OR OTHER LEGAL PROCEEDING IN WHICH A JURY TRIAL CANNOT BE WAIVED.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Non-Reliance and Exculpation</u>. Investor acknowledges that it is not relying upon, and has not relied upon, any statement, representation or warranty made by any person, firm or corporation, other than the statements, representations and warranties of the Company expressly contained in Section 5 of this Subscription Agreement, in making its investment or decision to invest in the Company. Investor acknowledges and agrees that none of (i) any other investor pursuant to this Subscription Agreement or any other subscription agreement related to the private placement of the Shares (including the investor's respective affiliates or any control persons, officers, directors, employees, partners, agents or representatives of any of the foregoing), or (ii) any Non-Party Affiliate, shall have any liability to the Investor, or to any other investor, pursuant to, arising out of or relating to this Subscription Agreement or any other subscription agreement related to the private placement of the Shares, the negotiation hereof or thereof or its subject matter, or the transactions contemplated hereby or thereby, including, without limitation, with respect to any action heretofore or hereafter taken or omitted to be taken by any of them in connection with the purchase of the Shares or with respect to any claim (whether in tort, contract or otherwise) for breach of this Subscription Agreement or in respect of any written or oral representations made or alleged to be made in connection herewith, as expressly provided herein, or for any actual or alleged inaccuracies, misstatements or omissions with respect to any information or materials of any kind furnished by the Company or any Non-Party Affiliate concerning the Company, any of its controlled affiliates, this Subscription Agreement or the transactions contemplated hereby. For purposes of this Subscription Agreement, "Non-Party Affiliates" means each former, current or future officer, director, employee, partner, member, manager, direct or indirect equityholder or affiliate of the Company or any of the Company's controlled affiliates or any family member of the foregoing.

[*SIGNATURE PAGE FOLLOWS*]

**IN WITNESS WHEREOF**, the Investor has executed or caused this Subscription Agreement to be executed by its duly authorized representative as of the date set forth below.

Name of Investor: State/Country of Formation or Domicile: <br>Avenue Venture Opportunities Fund II, L.P. Delaware

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| | |
|:---|:---|
| By: | Avenue Venture Opportunities Partners II, LLC |
| Its: | General Partner |
| By: | /s/ Sonia Gardner |
| Name: | Sonia Gardner |
| Title: | Authorized Signatory |
| Date: | August 4, 2025 |

---

Name in which Shares are to be registered

(if different):

Investor's EIN: [\*\*\*]

Business Address-Street: 11 West 42<sup>nd</sup> Street, 9<sup>th</sup> Floor, New York, NY 10036

Attn: Todd Greenbarg Telephone No.: [\*\*\*]

Email: [\*\*\*]; [\*\*\*]

With a copy to:

Attn: Weikai Lang Telephone No: [\*\*\*]

Email: [\*\*\*]

Number of Shares of Common Stock: 106,351

For notices, with copy to (which shall not constitute notice):

GCA Law Partners LLP

2570 W. El Camino Real, Suite 400

Mountain View, California 94040

Attn: Laura Blakely

Email: [\*\*\*]

Signature Page to Subscription Agreement

**IN WITNESS WHEREOF**, the Company has accepted this Subscription Agreement as of the date set forth below.

---

| |
|:---|
| ELECTROCORE, INC. |
| By: /s/ Joshua S. Lev |
| Name: Joshua S. Lev |
| Title: Chief Financial Officer |

---

Date: August 4, 2025

Signature Page to Subscription Agreement

**SCHEDULE A**

**ELIGIBILITY REPRESENTATIONS OF INVESTOR**

A. QUALIFIED INSTITUTIONAL BUYER STATUS

(Please check the applicable subparagraphs):

☒ We are a "qualified institutional buyer" (as defined in Rule 144A under the Securities Act (a "<u>QIB</u>")).

B. INSTITUTIONAL ACCREDITED INVESTOR
 STATUS

(Please check the applicable subparagraphs):

1. ☒ We are an "accredited
 investor" (within the meaning of Rule 501(a) under the Securities Act or an entity in which all of the equity holders are accredited
 investors within the meaning of Rule 501(a) under the Securities Act), and have marked and initialed the appropriate box below indicating
 the provision under which we qualify as an "accredited investor."

2. ☒ We are not a natural person.

Rule 501(a), in relevant part, states that an "accredited investor" shall mean any person who comes within any of the below listed categories, or who the issuer reasonably believes comes within any of the below listed categories, at the time of the sale of the securities to that person. Investor has indicated, by marking and initialing the appropriate box below, the provision(s) below which apply to Investor and under which Investor accordingly qualifies as an "accredited investor."

☐ Any bank, registered broker or dealer, insurance company, registered investment company, business development company, or small business investment company;

☐ Any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions for the benefit of its employees, if such plan has total assets in excess of $5,000,000;

☐ Any employee benefit plan, within the meaning of the Employee Retirement Income Security Act of 1974, if a bank, insurance company, or registered investment adviser makes the investment decisions, or if the plan has total assets in excess of $5,000,000;

☐ Any organization described in Section 501(c)(3) of the Internal Revenue Code, corporation, similar business trust, or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000;

☐ Any trust with assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person;

☒ Any entity in which all of the equity owners are accredited investors within the meaning of Rule 501(a); or

☐ Any natural person who (i) has an individual net worth, or joint net worth with their spouse or equivalent, in excess of $1,000,000, (ii) had an individual income in excess of $200,000 in each of the two most recent years, or (iii) had joint income with their spouse or equivalent in excess of $300,000 in each of the two most recent years and has a reasonable expectation of reaching the same income level in the current year.

 **

***This page should be completed by Investor***

 

***and constitutes a part of the Subscription Agreement.***

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Schedule A – Page 1

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## Exhibit 31.1

**EXHIBIT 31.1**

**CERTIFICATION**

I, Daniel S. Goldberger, certify that:

1. I
 have reviewed this Quarterly Report on Form 10-Q of electroCore, 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 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, including its consolidated subsidiaries, is made known to us by others
 within those entities, particularly during the period in which this report is being prepared;

(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;

(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

(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 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

(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 6, 2025 | /s/ DANIEL S. GOLDBERGER |
|  | Daniel S. Goldberger |
|  | Chief Executive Officer |
|  | (Principal Executive Officer) |

---

## Exhibit 31.2

**EXHIBIT 31.2**

**CERTIFICATION**

I, Joshua S. Lev, certify that:

1. I
 have reviewed this Quarterly Report on Form 10-Q of electroCore, 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 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, including its consolidated subsidiaries, is made known to us by others
 within those entities, particularly during the period in which this report is being prepared;

(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;

(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

(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 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

(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 6, 2025 | /s/ JOSHUA S. LEV |
|  | Joshua S. Lev |
|  | Chief Financial Officer |
|  | (Principal Financial and Accounting Officer) |

---

## Exhibit 32.1

**EXHIBIT 32.1**

**CERTIFICATION PURSUANT TO**

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

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

In connection with the Quarterly Report on Form 10-Q of electroCore, Inc, (the "Company") for the period ended June 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned, Daniel S. Goldberger, as Chief Executive Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, that to the best of my knowledge:

1. The Report 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.

---

| | |
|:---|:---|
| Date: August 6, 2025 | /s/ DANIEL S. GOLDBERGER |
|  | Daniel S. Goldberger |
|  | Chief Executive Officer |
|  | (Principal Executive Officer) |

---

## Exhibit 32.2

**EXHIBIT 32.2**

**CERTIFICATION PURSUANT TO**

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

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

In connection with the Quarterly Report on Form 10-Q of electroCore, Inc. (the "Company") for the period ended June 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned, Joshua S. Lev, Chief Financial Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, that to the best of my knowledge:

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.

---

| | |
|:---|:---|
| Date: August 6, 2025 | /s/ JOSHUA S. LEV |
|  | Joshua S. Lev |
|  | Chief Financial Officer |
|  | (Principal Financial and Accounting Officer) |

---