0000737207 false --12-31 Q3 P5Y P1Y P6Y 0000737207 2022-01-01 2022-09-30 0000737207 2022-11-14 0000737207 2022-09-30 0000737207 2021-12-31 0000737207 ATRX:SeriesCConvertiablePreferredStockMember 2022-09-30 0000737207 ATRX:SeriesCConvertiablePreferredStockMember 2021-12-31 0000737207 ATRX:SeriesDConvertiablePreferredStockMember 2022-09-30 0000737207 ATRX:SeriesDConvertiablePreferredStockMember 2021-12-31 0000737207 ATRX:SeriesEConvertiablePreferredStockMember 2022-09-30 0000737207 ATRX:SeriesEConvertiablePreferredStockMember 2021-12-31 0000737207 ATRX:SeriesFConvertiablePreferredStockMember 2022-09-30 0000737207 ATRX:SeriesFConvertiablePreferredStockMember 2021-12-31 0000737207 ATRX:SeriesGConvertiablePreferredStockMember 2022-09-30 0000737207 ATRX:SeriesGConvertiablePreferredStockMember 2021-12-31 0000737207 ATRX:SeriesCconvertiblePreferredStockMember 2022-09-30 0000737207 ATRX:SeriesCconvertiblePreferredStockMember 2021-12-31 0000737207 ATRX:SeriesDConvertiblePreferredStockMember 2022-09-30 0000737207 ATRX:SeriesDConvertiblePreferredStockMember 2021-12-31 0000737207 ATRX:SeriesEConvertiblePreferredStockMember 2022-09-30 0000737207 ATRX:SeriesEConvertiblePreferredStockMember 2021-12-31 0000737207 ATRX:SeriesFConvertiblePreferredStockMember 2022-09-30 0000737207 ATRX:SeriesFConvertiblePreferredStockMember 2021-12-31 0000737207 ATRX:SeriesGConvertiblePreferredStockMember 2022-09-30 0000737207 ATRX:SeriesGConvertiblePreferredStockMember 2021-12-31 0000737207 2022-07-01 2022-09-30 0000737207 2021-07-01 2021-09-30 0000737207 2021-01-01 2021-09-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesCPreferredStockMember 2020-12-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesDPreferredStockMember 2020-12-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesEPreferredStockMember 2020-12-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesFPreferredStockMember 2020-12-31 0000737207 us-gaap:CommonStockMember 2020-12-31 0000737207 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0000737207 us-gaap:RetainedEarningsMember 2020-12-31 0000737207 us-gaap:TreasuryStockMember 2020-12-31 0000737207 2020-12-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesCPreferredStockMember 2021-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesDPreferredStockMember 2021-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesEPreferredStockMember 2021-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesFPreferredStockMember 2021-03-31 0000737207 us-gaap:CommonStockMember 2021-03-31 0000737207 us-gaap:AdditionalPaidInCapitalMember 2021-03-31 0000737207 us-gaap:RetainedEarningsMember 2021-03-31 0000737207 us-gaap:TreasuryStockMember 2021-03-31 0000737207 2021-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesCPreferredStockMember 2021-06-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesDPreferredStockMember 2021-06-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesEPreferredStockMember 2021-06-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesFPreferredStockMember 2021-06-30 0000737207 us-gaap:CommonStockMember 2021-06-30 0000737207 us-gaap:AdditionalPaidInCapitalMember 2021-06-30 0000737207 us-gaap:RetainedEarningsMember 2021-06-30 0000737207 us-gaap:TreasuryStockMember 2021-06-30 0000737207 2021-06-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesCPreferredStockMember 2021-12-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesDPreferredStockMember 2021-12-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesEPreferredStockMember 2021-12-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesFPreferredStockMember 2021-12-31 0000737207 us-gaap:CommonStockMember 2021-12-31 0000737207 us-gaap:AdditionalPaidInCapitalMember 2021-12-31 0000737207 us-gaap:RetainedEarningsMember 2021-12-31 0000737207 us-gaap:TreasuryStockMember 2021-12-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesCPreferredStockMember 2022-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesDPreferredStockMember 2022-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesEPreferredStockMember 2022-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesFPreferredStockMember 2022-03-31 0000737207 us-gaap:CommonStockMember 2022-03-31 0000737207 us-gaap:AdditionalPaidInCapitalMember 2022-03-31 0000737207 us-gaap:RetainedEarningsMember 2022-03-31 0000737207 us-gaap:TreasuryStockMember 2022-03-31 0000737207 2022-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesCPreferredStockMember 2022-06-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesDPreferredStockMember 2022-06-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesEPreferredStockMember 2022-06-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesFPreferredStockMember 2022-06-30 0000737207 us-gaap:CommonStockMember 2022-06-30 0000737207 us-gaap:AdditionalPaidInCapitalMember 2022-06-30 0000737207 us-gaap:RetainedEarningsMember 2022-06-30 0000737207 us-gaap:TreasuryStockMember 2022-06-30 0000737207 2022-06-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesCPreferredStockMember 2021-01-01 2021-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesDPreferredStockMember 2021-01-01 2021-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesEPreferredStockMember 2021-01-01 2021-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesFPreferredStockMember 2021-01-01 2021-03-31 0000737207 us-gaap:CommonStockMember 2021-01-01 2021-03-31 0000737207 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-03-31 0000737207 us-gaap:RetainedEarningsMember 2021-01-01 2021-03-31 0000737207 us-gaap:TreasuryStockMember 2021-01-01 2021-03-31 0000737207 2021-01-01 2021-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesCPreferredStockMember 2021-04-01 2021-06-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesDPreferredStockMember 2021-04-01 2021-06-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesEPreferredStockMember 2021-04-01 2021-06-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesFPreferredStockMember 2021-04-01 2021-06-30 0000737207 us-gaap:CommonStockMember 2021-04-01 2021-06-30 0000737207 us-gaap:AdditionalPaidInCapitalMember 2021-04-01 2021-06-30 0000737207 us-gaap:RetainedEarningsMember 2021-04-01 2021-06-30 0000737207 us-gaap:TreasuryStockMember 2021-04-01 2021-06-30 0000737207 2021-04-01 2021-06-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesCPreferredStockMember 2021-07-01 2021-09-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesDPreferredStockMember 2021-07-01 2021-09-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesEPreferredStockMember 2021-07-01 2021-09-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesFPreferredStockMember 2021-07-01 2021-09-30 0000737207 us-gaap:CommonStockMember 2021-07-01 2021-09-30 0000737207 us-gaap:AdditionalPaidInCapitalMember 2021-07-01 2021-09-30 0000737207 us-gaap:RetainedEarningsMember 2021-07-01 2021-09-30 0000737207 us-gaap:TreasuryStockMember 2021-07-01 2021-09-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesCPreferredStockMember 2022-01-01 2022-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesDPreferredStockMember 2022-01-01 2022-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesEPreferredStockMember 2022-01-01 2022-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesFPreferredStockMember 2022-01-01 2022-03-31 0000737207 us-gaap:CommonStockMember 2022-01-01 2022-03-31 0000737207 us-gaap:AdditionalPaidInCapitalMember 2022-01-01 2022-03-31 0000737207 us-gaap:RetainedEarningsMember 2022-01-01 2022-03-31 0000737207 us-gaap:TreasuryStockMember 2022-01-01 2022-03-31 0000737207 2022-01-01 2022-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesCPreferredStockMember 2022-04-01 2022-06-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesDPreferredStockMember 2022-04-01 2022-06-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesEPreferredStockMember 2022-04-01 2022-06-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesFPreferredStockMember 2022-04-01 2022-06-30 0000737207 us-gaap:CommonStockMember 2022-04-01 2022-06-30 0000737207 us-gaap:AdditionalPaidInCapitalMember 2022-04-01 2022-06-30 0000737207 us-gaap:RetainedEarningsMember 2022-04-01 2022-06-30 0000737207 us-gaap:TreasuryStockMember 2022-04-01 2022-06-30 0000737207 2022-04-01 2022-06-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesCPreferredStockMember 2022-07-01 2022-09-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesDPreferredStockMember 2022-07-01 2022-09-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesEPreferredStockMember 2022-07-01 2022-09-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesFPreferredStockMember 2022-07-01 2022-09-30 0000737207 us-gaap:CommonStockMember 2022-07-01 2022-09-30 0000737207 us-gaap:AdditionalPaidInCapitalMember 2022-07-01 2022-09-30 0000737207 us-gaap:RetainedEarningsMember 2022-07-01 2022-09-30 0000737207 us-gaap:TreasuryStockMember 2022-07-01 2022-09-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesCPreferredStockMember 2021-09-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesDPreferredStockMember 2021-09-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesEPreferredStockMember 2021-09-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesFPreferredStockMember 2021-09-30 0000737207 us-gaap:CommonStockMember 2021-09-30 0000737207 us-gaap:AdditionalPaidInCapitalMember 2021-09-30 0000737207 us-gaap:RetainedEarningsMember 2021-09-30 0000737207 us-gaap:TreasuryStockMember 2021-09-30 0000737207 2021-09-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesCPreferredStockMember 2022-09-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesDPreferredStockMember 2022-09-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesEPreferredStockMember 2022-09-30 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesFPreferredStockMember 2022-09-30 0000737207 us-gaap:CommonStockMember 2022-09-30 0000737207 us-gaap:AdditionalPaidInCapitalMember 2022-09-30 0000737207 us-gaap:RetainedEarningsMember 2022-09-30 0000737207 us-gaap:TreasuryStockMember 2022-09-30 0000737207 us-gaap:FairValueInputsLevel3Member 2022-09-30 0000737207 srt:MinimumMember 2022-01-01 2022-09-30 0000737207 srt:MaximumMember 2022-01-01 2022-09-30 0000737207 us-gaap:FairValueInputsLevel1Member 2022-09-30 0000737207 us-gaap:FairValueInputsLevel2Member 2022-09-30 0000737207 us-gaap:WarrantMember 2021-12-31 0000737207 ATRX:ConvertibleNotesMember 2021-12-31 0000737207 us-gaap:WarrantMember 2022-01-01 2022-09-30 0000737207 ATRX:ConvertibleNotesMember 2022-01-01 2022-09-30 0000737207 us-gaap:WarrantMember 2022-09-30 0000737207 ATRX:ConvertibleNotesMember 2022-09-30 0000737207 ATRX:StockOptionsOutstandingMember 2022-01-01 2022-09-30 0000737207 ATRX:StockOptionsOutstandingMember 2021-01-01 2021-09-30 0000737207 us-gaap:ConvertibleNotesPayableMember 2022-01-01 2022-09-30 0000737207 us-gaap:ConvertibleNotesPayableMember 2021-01-01 2021-09-30 0000737207 us-gaap:WarrantMember 2022-01-01 2022-09-30 0000737207 us-gaap:WarrantMember 2021-01-01 2021-09-30 0000737207 us-gaap:SeriesCPreferredStockMember 2022-01-01 2022-09-30 0000737207 us-gaap:SeriesCPreferredStockMember 2021-01-01 2021-09-30 0000737207 us-gaap:SeriesDPreferredStockMember 2022-01-01 2022-09-30 0000737207 us-gaap:SeriesDPreferredStockMember 2021-01-01 2021-09-30 0000737207 us-gaap:SeriesEPreferredStockMember 2022-01-01 2022-09-30 0000737207 us-gaap:SeriesEPreferredStockMember 2021-01-01 2021-09-30 0000737207 us-gaap:SeriesFPreferredStockMember 2022-01-01 2022-09-30 0000737207 us-gaap:SeriesFPreferredStockMember 2021-01-01 2021-09-30 0000737207 ATRX:TwoThousandNineteenTermLoanMember 2022-09-30 0000737207 ATRX:TwoThousandNineteenTermLoanMember 2021-12-31 0000737207 ATRX:TwoThousandTwentyTwoTermLoanMember 2022-09-30 0000737207 ATRX:TwoThousandTwentyTwoTermLoanMember 2021-12-31 0000737207 ATRX:AccreditedInvestorsMember ATRX:TermLoanSubscriptionAgreementsMember 2019-12-31 0000737207 ATRX:AccreditedInvestorsMember ATRX:TermLoanSubscriptionAgreementsMember 2019-12-27 2019-12-28 0000737207 ATRX:AccreditedInvestorsMember ATRX:TermLoanSubscriptionAgreementsMember 2022-01-01 2022-09-30 0000737207 ATRX:AccreditedInvestorsMember ATRX:TermLoanSubscriptionAgreementsMember 2022-07-01 2022-09-30 0000737207 ATRX:AccreditedInvestorsMember ATRX:TermLoanSubscriptionAgreementsMember 2021-07-01 2021-09-30 0000737207 ATRX:AccreditedInvestorsMember ATRX:TermLoanSubscriptionAgreementsMember 2021-01-01 2021-09-30 0000737207 ATRX:AccreditedInvestorsMember ATRX:TermLoanSubscriptionAgreementsMember 2022-09-30 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:InvestorsMember 2022-05-11 0000737207 ATRX:InvestorsMember ATRX:SecuritiesPurchaseAgreementMember 2022-05-07 2022-05-11 0000737207 2022-05-07 2022-05-11 0000737207 ATRX:InvestorsMember ATRX:SecuritiesPurchaseAgreementMember us-gaap:CommonStockMember 2022-05-11 0000737207 ATRX:InvestorsMember us-gaap:CommonStockMember 2022-05-11 0000737207 ATRX:InvestorsMember ATRX:SecuritiesPurchaseAgreementMember 2022-07-01 2022-09-30 0000737207 ATRX:InvestorsMember ATRX:SecuritiesPurchaseAgreementMember 2022-01-01 2022-09-30 0000737207 ATRX:InvestorsMember ATRX:SecuritiesPurchaseAgreementMember 2021-07-01 2021-09-30 0000737207 ATRX:InvestorsMember ATRX:SecuritiesPurchaseAgreementMember 2021-01-01 2021-09-30 0000737207 ATRX:InvestorsMember ATRX:SecuritiesPurchaseAgreementMember 2022-09-30 0000737207 ATRX:TenConvertibleNotesMember 2022-09-30 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:AccreditedInvestorsMember 2020-02-05 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:AccreditedInvestorsMember 2020-02-04 2020-02-05 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:AccreditedInvestorsMember 2020-06-15 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:AccreditedInvestorsMember 2020-05-05 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:AccreditedInvestorsMember 2020-05-04 2020-05-05 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:AccreditedInvestorsMember us-gaap:WarrantMember 2020-02-05 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:AccreditedInvestorsMember us-gaap:ConvertibleDebtMember us-gaap:WarrantMember 2020-02-04 2020-02-05 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:AccreditedInvestorsMember us-gaap:ConvertibleDebtMember us-gaap:WarrantMember 2020-02-05 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:AccreditedInvestorsMember us-gaap:ConvertibleDebtMember 2020-02-04 2020-02-05 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:AccreditedInvestorsMember ATRX:ConvertibleNoteMember 2021-03-18 2021-03-19 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:AccreditedInvestorsMember ATRX:ConvertibleNoteMember 2021-07-27 2021-07-29 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:AccreditedInvestorsMember ATRX:ConvertibleNoteMember 2021-08-15 2021-08-16 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:AccreditedInvestorsMember ATRX:ConvertibleNoteMember 2021-09-12 2021-09-13 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:AccreditedInvestorsMember ATRX:ConvertibleNoteMember 2021-10-02 2021-10-04 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:AccreditedInvestorsMember ATRX:ConvertibleNoteMember 2021-11-28 2021-11-29 0000737207 us-gaap:ConvertibleDebtMember 2021-01-01 2021-12-31 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:AccreditedInvestorsMember 2022-01-26 2022-01-27 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:AccreditedInvestorsMember 2022-01-27 0000737207 ATRX:FebruaryTwoThousandTwentyConvertibleNoteMember 2022-09-30 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:AccreditedInvestorsMember ATRX:ConvertibleNoteMember 2022-09-30 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:AccreditedInvestorsMember ATRX:ConvertibleNoteMember 2022-01-01 2022-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteMember ATRX:ConvertibleNoteMember 2020-06-26 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteMember ATRX:ConvertibleNoteMember 2020-06-25 2020-06-26 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteMember us-gaap:ConvertibleDebtMember 2020-08-05 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteMember 2019-08-05 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteMember us-gaap:ConvertibleDebtMember 2022-01-26 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteMember us-gaap:ConvertibleDebtMember 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteMember 2022-07-01 2022-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteMember 2022-01-01 2022-09-30 0000737207 ATRX:SecuredConvertiblePromissoryNoteMember us-gaap:ConvertibleDebtMember 2022-09-30 0000737207 ATRX:SecuredConvertiblePromissoryNoteMember us-gaap:ConvertibleDebtMember 2022-01-01 2022-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember 2020-10-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember 2020-10-29 2020-10-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember 2019-10-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember 2021-04-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember 2021-03-19 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember us-gaap:MeasurementInputRiskFreeInterestRateMember 2021-03-19 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember us-gaap:MeasurementInputPriceVolatilityMember 2021-03-19 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember us-gaap:WarrantMember 2020-10-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember us-gaap:ConvertibleDebtMember 2020-10-29 2020-10-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember us-gaap:ConvertibleDebtMember 2020-10-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember srt:MinimumMember 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember srt:MaximumMember 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember 2022-01-27 0000737207 ATRX:ConvertibleNoteMember 2022-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember ATRX:OctoberTwoThousandTwentyMember 2022-07-01 2022-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember ATRX:OctoberTwoThousandTwentyMember 2022-01-01 2022-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember ATRX:OctoberTwoThousandTwentyMember 2021-07-01 2021-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember ATRX:OctoberTwoThousandTwentyMember 2021-01-01 2021-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember 2021-01-01 2021-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember 2022-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember 2022-01-01 2022-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember 2021-01-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember ATRX:InvestorAndLenderMember 2021-01-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember 2021-01-30 2021-01-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember 2021-03-19 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember 2021-03-18 2021-03-19 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember us-gaap:MeasurementInputRiskFreeInterestRateMember 2021-03-19 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember us-gaap:MeasurementInputPriceVolatilityMember 2021-03-19 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember 2021-07-01 2021-07-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember us-gaap:WarrantMember 2021-01-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember us-gaap:WarrantMember 2021-01-30 2021-01-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember us-gaap:MeasurementInputRiskFreeInterestRateMember us-gaap:WarrantMember 2021-01-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember us-gaap:MeasurementInputPriceVolatilityMember us-gaap:WarrantMember 2021-01-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember srt:MinimumMember 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember srt:MaximumMember 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember 2022-01-26 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember 2022-07-01 2022-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember 2022-01-01 2022-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember 2021-07-01 2021-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember 2021-01-01 2021-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember 2022-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember 2021-04-12 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember us-gaap:InvestorMember 2021-04-12 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember 2021-10-12 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember 2021-04-10 2021-04-12 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember us-gaap:WarrantMember 2021-04-10 2021-04-12 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember us-gaap:MeasurementInputRiskFreeInterestRateMember 2021-04-12 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember us-gaap:MeasurementInputPriceVolatilityMember 2021-04-12 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember us-gaap:WarrantMember 2021-06-25 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember 2021-06-23 2021-06-25 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember us-gaap:MeasurementInputRiskFreeInterestRateMember us-gaap:WarrantMember 2021-06-25 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember us-gaap:MeasurementInputPriceVolatilityMember us-gaap:WarrantMember 2021-06-25 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember us-gaap:WarrantMember 2021-04-12 0000737207 ATRX:AprilTwoThousandTwentyOneConvertibleNoteMember 2021-11-03 2021-11-04 0000737207 ATRX:AprilTwoThousandTwentyOneConvertibleNoteMember 2021-11-04 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember 2021-11-30 0000737207 2021-11-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember srt:MinimumMember 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember srt:MaximumMember 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember 2022-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember 2022-01-01 2022-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember us-gaap:CommonStockMember 2022-07-01 2022-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember 2022-07-01 2022-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember 2021-07-01 2021-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember 2021-01-01 2021-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember 2021-06-25 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember 2021-06-23 2021-06-25 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember us-gaap:CommonStockMember 2021-06-25 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember us-gaap:WarrantMember 2021-06-25 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember us-gaap:WarrantMember 2021-06-23 2021-06-25 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember us-gaap:MeasurementInputRiskFreeInterestRateMember us-gaap:WarrantMember 2021-06-25 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember us-gaap:MeasurementInputPriceVolatilityMember us-gaap:WarrantMember 2021-06-25 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember us-gaap:WarrantMember 2021-08-11 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember us-gaap:WarrantMember 2021-08-10 2021-08-11 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember us-gaap:MeasurementInputRiskFreeInterestRateMember us-gaap:WarrantMember 2021-08-11 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember us-gaap:MeasurementInputPriceVolatilityMember us-gaap:WarrantMember 2021-08-11 0000737207 us-gaap:WarrantMember ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember 2021-11-30 0000737207 us-gaap:WarrantMember ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember 2021-11-28 2021-11-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember 2022-01-26 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember us-gaap:ConvertibleDebtMember 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember ATRX:JuneTwoThousandAndTwentyOneConvertiblePromissoryNoteMember 2022-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember 2022-07-01 2022-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember 2022-01-01 2022-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember 2021-07-01 2021-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember 2021-01-01 2021-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember 2022-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember 2021-08-11 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember ATRX:RegistrationRightsAgreementMember 2021-08-10 2021-08-11 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember 2021-08-10 2021-08-11 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember srt:MinimumMember 2021-08-11 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember 2021-11-08 2021-11-09 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember us-gaap:WarrantMember 2021-08-11 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember us-gaap:CommonStockMember 2021-08-10 2021-08-11 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember us-gaap:WarrantMember 2021-08-10 2021-08-11 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember us-gaap:CommonStockMember 2021-08-11 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember us-gaap:ConvertibleDebtMember 2021-08-11 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember us-gaap:MeasurementInputRiskFreeInterestRateMember us-gaap:WarrantMember 2021-08-11 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember us-gaap:MeasurementInputPriceVolatilityMember us-gaap:WarrantMember 2021-08-11 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember 2021-11-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember 2022-01-26 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember 2022-05-07 2022-05-12 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember 2022-05-12 0000737207 ATRX:AugustElevenTwoThousandAndTwentyOneConvertiblePromissoryNoteMember ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember 2022-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember 2022-07-01 2022-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember 2022-01-01 2022-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember 2021-07-01 2021-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember 2021-01-01 2021-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember 2022-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember 2021-08-17 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember ATRX:RegistrationRightsAgreementMember 2021-08-15 2021-08-17 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember 2021-08-15 2021-08-17 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember srt:MinimumMember 2021-08-17 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember us-gaap:WarrantMember 2021-08-17 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember us-gaap:CommonStockMember 2021-08-15 2021-08-17 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember us-gaap:WarrantMember 2021-08-15 2021-08-17 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember us-gaap:CommonStockMember 2021-08-17 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember us-gaap:ConvertibleDebtMember 2021-08-17 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember us-gaap:MeasurementInputRiskFreeInterestRateMember us-gaap:WarrantMember 2021-08-17 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember us-gaap:MeasurementInputPriceVolatilityMember us-gaap:WarrantMember 2021-08-17 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember us-gaap:MeasurementInputRiskFreeInterestRateMember us-gaap:WarrantMember 2021-11-13 2021-11-15 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember us-gaap:ConvertibleDebtMember 2021-11-30 0000737207 ATRX:SecuredConvertiblePromissoryNoteSixMember us-gaap:ConvertibleDebtMember 2021-11-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember 2021-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember 2022-01-26 2022-01-27 0000737207 ATRX:AugustSeventeenTwoThousandAndTwentyOneConvertiblePromissoryNoteMember ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember 2022-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember 2022-07-01 2022-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember 2022-01-01 2022-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember 2021-07-01 2021-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember 2021-01-01 2021-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember 2022-09-30 0000737207 ATRX:SecuredConvertiblePromissoryNoteSevenMember 2021-10-04 0000737207 ATRX:SecuredConvertiblePromissoryNoteSevenMember ATRX:RegistrationRightsAgreementMember 2021-10-02 2021-10-04 0000737207 ATRX:SecuredConvertiblePromissoryNoteSevenMember us-gaap:WarrantMember 2021-10-04 0000737207 ATRX:SecuredConvertiblePromissoryNoteSevenMember 2021-10-03 2021-10-04 0000737207 ATRX:SecuredConvertiblePromissoryNoteSevenMember 2021-10-02 2021-10-04 0000737207 ATRX:SecuredConvertiblePromissoryNoteSevenMember us-gaap:CommonStockMember 2021-10-04 0000737207 ATRX:SecuredConvertiblePromissoryNoteSevenMember 2022-01-02 0000737207 ATRX:SecuredConvertiblePromissoryNoteSevenMember 2022-01-27 0000737207 ATRX:SecuredConvertiblePromissoryNoteSevenMember 2022-05-07 2022-05-12 0000737207 us-gaap:CommonStockMember ATRX:SecuredConvertiblePromissoryNoteSevenMember 2022-05-07 2022-05-12 0000737207 ATRX:SecuredConvertiblePromissoryNoteSevenMember 2022-07-01 2022-09-30 0000737207 us-gaap:CommonStockMember ATRX:SecuredConvertiblePromissoryNoteSevenMember 2022-07-01 2022-09-30 0000737207 ATRX:OctoberFourTwoThousandAndTwentyOneConvertiblePromissoryNoteMember ATRX:SeniorSecuredConvertiblePromissoryNoteSevenMember 2022-09-30 0000737207 ATRX:SecuredConvertiblePromissoryNoteSevenMember 2022-01-01 2022-09-30 0000737207 ATRX:SecuredConvertiblePromissoryNoteSevenMember 2022-09-30 0000737207 ATRX:SecuredConvertiblePromissoryNoteEightMember 2021-10-07 0000737207 ATRX:SecuredConvertiblePromissoryNoteEightMember ATRX:RegistrationRightsAgreementMember 2021-10-03 2021-10-07 0000737207 ATRX:SecuredConvertiblePromissoryNoteEightMember us-gaap:WarrantMember 2021-10-07 0000737207 ATRX:SecuredConvertiblePromissoryNoteEightMember 2021-10-03 2021-10-07 0000737207 ATRX:SecuredConvertiblePromissoryNoteEightMember us-gaap:CommonStockMember 2021-10-07 0000737207 ATRX:SecuredConvertiblePromissoryNoteEightMember us-gaap:ConvertibleDebtMember 2021-10-07 0000737207 2022-01-04 2022-01-05 0000737207 ATRX:SecuredConvertiblePromissoryNoteEightMember 2022-01-27 0000737207 ATRX:SecuredConvertiblePromissoryNoteEightMember 2022-05-07 2022-05-12 0000737207 us-gaap:CommonStockMember ATRX:SecuredConvertiblePromissoryNoteEightMember 2022-05-07 2022-05-12 0000737207 ATRX:SecuredConvertiblePromissoryNoteEightMember us-gaap:ConvertibleDebtMember 2022-07-01 2022-09-30 0000737207 ATRX:SecuredConvertiblePromissoryNoteEightMember 2022-09-30 0000737207 ATRX:SecuredConvertiblePromissoryNoteEightMember 2022-07-01 2022-09-30 0000737207 us-gaap:CommonStockMember ATRX:SecuredConvertiblePromissoryNoteEightMember 2022-07-01 2022-09-30 0000737207 ATRX:OctoberSevenTwoThousandAndTwentyOneConvertiblePromissoryNoteMember ATRX:SeniorSecuredConvertiblePromissoryNoteEightMember 2022-09-30 0000737207 ATRX:SecuredConvertiblePromissoryNoteEightMember 2022-01-01 2022-09-30 0000737207 ATRX:SecuredConvertiblePromissoryNoteEightMember 2022-08-30 0000737207 ATRX:SecuredConvertiblePromissoryNoteNineMember 2022-03-15 0000737207 ATRX:SecuredConvertiblePromissoryNoteNineMember 2022-03-13 2022-03-15 0000737207 ATRX:SecuredConvertiblePromissoryNoteNineMember us-gaap:InvestorMember 2022-03-13 2022-03-15 0000737207 ATRX:SecuredConvertiblePromissoryNoteNineMember us-gaap:CommonStockMember 2022-03-15 0000737207 ATRX:SecuredConvertiblePromissoryNoteNineMember us-gaap:ConvertibleDebtMember 2022-03-15 0000737207 ATRX:SecuredConvertiblePromissoryNoteNineMember 2022-07-01 2022-09-30 0000737207 ATRX:SecuredConvertiblePromissoryNoteNineMember 2022-01-01 2022-09-30 0000737207 ATRX:SecuredConvertiblePromissoryNoteNineMember 2022-09-30 0000737207 ATRX:SecuredConvertiblePromissoryNoteTwoMember us-gaap:WarrantMember 2022-09-30 0000737207 ATRX:SecuredConvertiblePromissoryNoteTwoMember us-gaap:WarrantMember 2022-01-01 2022-09-30 0000737207 us-gaap:ConvertibleDebtMember 2022-01-31 0000737207 us-gaap:MeasurementInputExpectedDividendRateMember 2022-09-30 0000737207 us-gaap:MeasurementInputExpectedTermMember srt:MinimumMember 2022-09-30 0000737207 us-gaap:MeasurementInputExpectedTermMember srt:MaximumMember 2022-09-30 0000737207 us-gaap:MeasurementInputPriceVolatilityMember srt:MinimumMember 2022-09-30 0000737207 us-gaap:MeasurementInputPriceVolatilityMember srt:MaximumMember 2022-09-30 0000737207 us-gaap:MeasurementInputRiskFreeInterestRateMember srt:MinimumMember 2022-09-30 0000737207 us-gaap:MeasurementInputRiskFreeInterestRateMember srt:MaximumMember 2022-09-30 0000737207 us-gaap:AccruedLiabilitiesMember ATRX:SublicensingAgreementMember 2018-03-15 2018-03-16 0000737207 ATRX:OfficersAndDirectorsMember 2022-09-30 0000737207 ATRX:OfficersAndDirectorsMember 2021-12-31 0000737207 us-gaap:SeriesBPreferredStockMember 2022-09-30 0000737207 ATRX:SeriesAJuniorParticipatingPreferredStockMember 2022-09-30 0000737207 us-gaap:SeriesAPreferredStockMember 2022-09-30 0000737207 us-gaap:SeriesAPreferredStockMember 2021-12-31 0000737207 ATRX:SeriesCconvertiblePreferredStockMember 2014-03-31 0000737207 ATRX:SeriesDConvertiblePreferredStockMember 2015-08-31 0000737207 ATRX:SeriesEConvertiblePreferredStockMember 2018-04-30 0000737207 ATRX:SeriesFConvertiblePreferredStockMember 2018-07-31 0000737207 ATRX:SeriesGConvertiblePreferredStockMember 2019-12-31 0000737207 us-gaap:SeriesCPreferredStockMember 2022-09-30 0000737207 us-gaap:SeriesCPreferredStockMember 2022-01-01 2022-09-30 0000737207 us-gaap:SeriesCPreferredStockMember 2021-12-31 0000737207 us-gaap:SeriesDPreferredStockMember 2022-09-30 0000737207 us-gaap:SeriesDPreferredStockMember 2022-01-01 2022-09-30 0000737207 us-gaap:SeriesDPreferredStockMember 2021-12-31 0000737207 ATRX:SeriesEConvertiblePreferredStockAndWarrantsMember 2022-09-30 0000737207 ATRX:SeriesEConvertiblePreferredStockAndWarrantsMember 2022-01-01 2022-09-30 0000737207 ATRX:SeriesEWarrantsMember srt:MaximumMember 2021-03-19 0000737207 ATRX:SeriesEWarrantsMember srt:MinimumMember 2021-03-19 0000737207 ATRX:SeriesEWarrantsMember 2021-03-18 2021-03-19 0000737207 us-gaap:SeriesEPreferredStockMember 2021-03-18 2021-03-19 0000737207 us-gaap:MeasurementInputRiskFreeInterestRateMember us-gaap:SeriesEPreferredStockMember 2021-03-19 0000737207 us-gaap:MeasurementInputPriceVolatilityMember us-gaap:SeriesEPreferredStockMember 2021-03-19 0000737207 us-gaap:SeriesEPreferredStockMember srt:MinimumMember 2021-03-19 0000737207 us-gaap:SeriesEPreferredStockMember srt:MaximumMember 2021-03-19 0000737207 ATRX:SeriesEPreferredMember 2021-06-07 2021-06-08 0000737207 ATRX:SeriesEPreferredMember 2021-06-08 0000737207 ATRX:SeriesEPreferredMember 2021-07-27 2021-07-30 0000737207 us-gaap:CommonStockMember 2021-07-27 2021-07-30 0000737207 ATRX:SeriesEPreferredMember 2021-10-03 2021-10-04 0000737207 ATRX:SeriesEPreferredMember 2021-10-01 2021-10-05 0000737207 ATRX:SeriesEPreferredMember 2021-10-06 2021-10-08 0000737207 ATRX:SeriesEPreferredMember 2021-10-10 2021-10-12 0000737207 ATRX:SeriesEPreferredMember 2021-11-22 2021-11-23 0000737207 ATRX:SeriesEWarrantsMember 2022-01-27 0000737207 ATRX:SeriesEPreferredMember 2022-05-03 2022-05-17 0000737207 ATRX:PreferredAndAccruedDividendsMember 2022-05-17 0000737207 ATRX:SeriesEPreferredAndAccruedDividendsMember 2022-05-03 2022-05-17 0000737207 ATRX:SeriesEPreferredMember 2022-05-17 0000737207 us-gaap:SeriesEPreferredStockMember 2022-09-30 0000737207 us-gaap:SeriesEPreferredStockMember 2021-12-31 0000737207 ATRX:SeriesFConvertiblePreferredStockAndWarrantsMember 2022-09-30 0000737207 ATRX:SeriesFConvertiblePreferredStockAndWarrantsMember 2022-01-01 2022-09-30 0000737207 ATRX:SeriesFWarrantsMember srt:MaximumMember 2021-03-19 0000737207 ATRX:SeriesFWarrantsMember srt:MinimumMember 2021-03-19 0000737207 ATRX:SeriesFWarrantsMember 2021-03-18 2021-03-19 0000737207 us-gaap:SeriesFPreferredStockMember 2021-03-18 2021-03-19 0000737207 us-gaap:MeasurementInputRiskFreeInterestRateMember us-gaap:SeriesFPreferredStockMember 2021-03-19 0000737207 us-gaap:MeasurementInputPriceVolatilityMember us-gaap:SeriesFPreferredStockMember 2021-03-19 0000737207 us-gaap:SeriesFPreferredStockMember srt:MinimumMember 2021-03-19 0000737207 us-gaap:SeriesFPreferredStockMember srt:MaximumMember 2021-03-19 0000737207 ATRX:SeriesFPreferredMember 2021-10-13 2021-10-15 0000737207 ATRX:SeriesFWarrantsMember srt:MaximumMember 2022-01-27 0000737207 ATRX:SeriesFConvertiblePreferredStockMember 2022-05-03 2022-05-17 0000737207 ATRX:PreferredAndAccruedDividendMember 2022-05-17 0000737207 ATRX:SeriesFPreferredAndAccruedDividendMember 2022-05-03 2022-05-17 0000737207 ATRX:SeriesFPreferredMember 2022-05-17 0000737207 us-gaap:SeriesFPreferredStockMember 2022-09-30 0000737207 ATRX:SeriesGConvertiblePreferredSharesMember 2022-09-30 0000737207 ATRX:SeriesGConvertiblePreferredSharesMember 2022-01-01 2022-09-30 0000737207 us-gaap:SeriesGPreferredStockMember 2022-09-30 0000737207 ATRX:ConvertibleNoteInvestorMember 2021-08-10 2021-08-11 0000737207 ATRX:ConvertibleNoteInvestorMember 2021-08-15 2021-08-18 0000737207 ATRX:BankingAgreementMember 2021-09-21 2021-09-22 0000737207 ATRX:SeriesEPreferredMember 2021-10-03 2021-10-04 0000737207 ATRX:ConvertibleNoteInvestorMember 2021-10-03 2021-10-04 0000737207 ATRX:ConvertibleNoteInvestorMember 2021-10-06 2021-10-08 0000737207 ATRX:SeriesEPreferredMember 2021-10-11 2021-10-12 0000737207 ATRX:BankingAgreementMember 2021-12-04 2021-12-06 0000737207 ATRX:FebruaryTwoThousandTwentyConvertibleNoteMember 2021-01-01 2021-12-31 0000737207 ATRX:FebruaryTwoThousandTwentyConvertibleNoteMember 2021-12-31 0000737207 ATRX:ConvertibleNoteInvestorMember 2022-01-26 2022-01-27 0000737207 ATRX:ConvertibleNoteInvestorMember 2022-01-27 0000737207 ATRX:ConvertibleNoteInvestorMember 2021-06-26 2021-06-27 0000737207 ATRX:ConvertibleNoteInvestorMember 2022-03-12 2022-03-15 0000737207 ATRX:BankingAgreementMember 2022-03-12 2022-03-15 0000737207 ATRX:BankingAgreementMember 2022-05-09 2022-05-11 0000737207 ATRX:SeriesFPreferredMember 2022-05-03 2022-05-17 0000737207 us-gaap:TreasuryStockMember 2022-05-04 2022-05-12 0000737207 us-gaap:TreasuryStockMember 2022-05-12 0000737207 us-gaap:WarrantMember 2022-09-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteMember us-gaap:ConvertibleDebtMember 2022-01-31 0000737207 us-gaap:SeriesFPreferredStockMember 2022-09-30 0000737207 us-gaap:BridgeLoanMember 2022-09-30 0000737207 us-gaap:BridgeLoanMember 2022-09-30 0000737207 ATRX:ConvertibleNotesMember 2022-09-30 0000737207 ATRX:OtherMember 2022-09-30 0000737207 ATRX:RangeOneMember 2022-01-01 2022-09-30 0000737207 ATRX:RangeOneMember 2022-09-30 0000737207 ATRX:LicensingAgreementMLR1019Member 2021-07-27 2021-07-28 0000737207 ATRX:LicensingAgreementMLR1019Member 2021-07-28 0000737207 ATRX:LicensingAgreementMLR1023Member 2021-08-21 2021-08-24 0000737207 ATRX:LicensingAgreementMLR1019Member srt:MinimumMember 2021-08-24 0000737207 ATRX:LicensingAgreementMLR1019Member srt:MaximumMember 2021-08-24 0000737207 ATRX:LicensingAgreementMLR1023Member 2021-11-03 2021-11-17 0000737207 ATRX:LicensingAgreementMLR1023Member 2022-02-02 2022-02-16 0000737207 ATRX:LicensingAgreementMember 2022-07-06 2022-07-20 0000737207 ATRX:LicensingAgreementMember ATRX:ChiefScientificOfficerMember 2022-07-06 2022-07-20 0000737207 ATRX:ConvertiblePromissoryNoteMember us-gaap:SubsequentEventMember 2022-10-04 0000737207 ATRX:ConvertiblePromissoryNoteMember us-gaap:SubsequentEventMember 2022-10-07 0000737207 ATRX:ConvertiblePromissoryNoteMember us-gaap:SubsequentEventMember 2022-10-15 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure ATRX:Integer

0000737207 false --12-31 Q1 http://fasb.org/us-gaap/2023#RelatedPartyMember http://fasb.org/us-gaap/2023#RelatedPartyMember P5Y P6Y 0000737207 2023-01-01 2023-03-31 0000737207 2023-05-22 0000737207 2023-03-31 0000737207 2022-12-31 0000737207 ATRX:SeriesCConvertiablePreferredStockMember 2023-03-31 0000737207 ATRX:SeriesCConvertiablePreferredStockMember 2022-12-31 0000737207 ATRX:SeriesDConvertiablePreferredStockMember 2023-03-31 0000737207 ATRX:SeriesDConvertiablePreferredStockMember 2022-12-31 0000737207 ATRX:SeriesEConvertiablePreferredStockMember 2023-03-31 0000737207 ATRX:SeriesEConvertiablePreferredStockMember 2022-12-31 0000737207 ATRX:SeriesFConvertiablePreferredStockMember 2023-03-31 0000737207 ATRX:SeriesFConvertiablePreferredStockMember 2022-12-31 0000737207 ATRX:SeriesGConvertiablePreferredStockMember 2023-03-31 0000737207 ATRX:SeriesGConvertiablePreferredStockMember 2022-12-31 0000737207 ATRX:SeriesCconvertiblePreferredStockMember 2023-03-31 0000737207 ATRX:SeriesCconvertiblePreferredStockMember 2022-12-31 0000737207 ATRX:SeriesDConvertiblePreferredStockMember 2023-03-31 0000737207 ATRX:SeriesDConvertiblePreferredStockMember 2022-12-31 0000737207 ATRX:SeriesEConvertiblePreferredStockMember 2023-03-31 0000737207 ATRX:SeriesEConvertiblePreferredStockMember 2022-12-31 0000737207 ATRX:SeriesFConvertiblePreferredStockMember 2023-03-31 0000737207 ATRX:SeriesFConvertiblePreferredStockMember 2022-12-31 0000737207 ATRX:SeriesGConvertiblePreferredStockMember 2023-03-31 0000737207 ATRX:SeriesGConvertiblePreferredStockMember 2022-12-31 0000737207 2022-01-01 2022-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesCPreferredStockMember 2021-12-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesDPreferredStockMember 2021-12-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesEPreferredStockMember 2021-12-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesFPreferredStockMember 2021-12-31 0000737207 us-gaap:CommonStockMember 2021-12-31 0000737207 us-gaap:AdditionalPaidInCapitalMember 2021-12-31 0000737207 us-gaap:RetainedEarningsMember 2021-12-31 0000737207 us-gaap:TreasuryStockCommonMember 2021-12-31 0000737207 2021-12-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesCPreferredStockMember 2022-12-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesDPreferredStockMember 2022-12-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesEPreferredStockMember 2022-12-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesFPreferredStockMember 2022-12-31 0000737207 us-gaap:CommonStockMember 2022-12-31 0000737207 us-gaap:AdditionalPaidInCapitalMember 2022-12-31 0000737207 us-gaap:RetainedEarningsMember 2022-12-31 0000737207 us-gaap:TreasuryStockCommonMember 2022-12-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesCPreferredStockMember 2022-01-01 2022-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesDPreferredStockMember 2022-01-01 2022-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesEPreferredStockMember 2022-01-01 2022-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesFPreferredStockMember 2022-01-01 2022-03-31 0000737207 us-gaap:CommonStockMember 2022-01-01 2022-03-31 0000737207 us-gaap:AdditionalPaidInCapitalMember 2022-01-01 2022-03-31 0000737207 us-gaap:RetainedEarningsMember 2022-01-01 2022-03-31 0000737207 us-gaap:TreasuryStockCommonMember 2022-01-01 2022-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesCPreferredStockMember 2023-01-01 2023-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesDPreferredStockMember 2023-01-01 2023-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesEPreferredStockMember 2023-01-01 2023-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesFPreferredStockMember 2023-01-01 2023-03-31 0000737207 us-gaap:CommonStockMember 2023-01-01 2023-03-31 0000737207 us-gaap:AdditionalPaidInCapitalMember 2023-01-01 2023-03-31 0000737207 us-gaap:RetainedEarningsMember 2023-01-01 2023-03-31 0000737207 us-gaap:TreasuryStockCommonMember 2023-01-01 2023-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesCPreferredStockMember 2022-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesDPreferredStockMember 2022-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesEPreferredStockMember 2022-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesFPreferredStockMember 2022-03-31 0000737207 us-gaap:CommonStockMember 2022-03-31 0000737207 us-gaap:AdditionalPaidInCapitalMember 2022-03-31 0000737207 us-gaap:RetainedEarningsMember 2022-03-31 0000737207 us-gaap:TreasuryStockCommonMember 2022-03-31 0000737207 2022-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesCPreferredStockMember 2023-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesDPreferredStockMember 2023-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesEPreferredStockMember 2023-03-31 0000737207 us-gaap:PreferredStockMember us-gaap:SeriesFPreferredStockMember 2023-03-31 0000737207 us-gaap:CommonStockMember 2023-03-31 0000737207 us-gaap:AdditionalPaidInCapitalMember 2023-03-31 0000737207 us-gaap:RetainedEarningsMember 2023-03-31 0000737207 us-gaap:TreasuryStockCommonMember 2023-03-31 0000737207 ATRX:LicensingAgreementMLR1019Member 2021-07-28 0000737207 ATRX:LicensingAgreementMLR1023Member 2021-08-19 2021-08-20 0000737207 ATRX:LicensingAgreementMLR1019Member 2021-08-19 2021-08-20 0000737207 ATRX:LicensingAgreementMLR1019Member 2021-11-16 2021-11-17 0000737207 ATRX:LicensingAgreementMember 2022-07-19 2022-07-20 0000737207 ATRX:LicensingAgreementMember 2023-02-01 2023-02-01 0000737207 2022-10-05 2022-10-05 0000737207 us-gaap:FairValueInputsLevel3Member 2023-03-31 0000737207 srt:MinimumMember 2023-01-01 2023-03-31 0000737207 srt:MaximumMember 2023-01-01 2023-03-31 0000737207 us-gaap:FairValueInputsLevel1Member 2023-03-31 0000737207 us-gaap:FairValueInputsLevel2Member 2023-03-31 0000737207 ATRX:WarrantsMember 2022-12-31 0000737207 ATRX:ConvertibleNotesMember 2022-12-31 0000737207 ATRX:WarrantsMember 2023-01-01 2023-03-31 0000737207 ATRX:ConvertibleNotesMember 2023-01-01 2023-03-31 0000737207 ATRX:WarrantsMember 2023-03-31 0000737207 ATRX:ConvertibleNotesMember 2023-03-31 0000737207 us-gaap:StockOptionMember 2023-01-01 2023-03-31 0000737207 us-gaap:StockOptionMember 2022-01-01 2022-03-31 0000737207 us-gaap:ConvertibleNotesPayableMember 2023-01-01 2023-03-31 0000737207 us-gaap:ConvertibleNotesPayableMember 2022-01-01 2022-03-31 0000737207 us-gaap:WarrantMember 2023-01-01 2023-03-31 0000737207 us-gaap:WarrantMember 2022-01-01 2022-03-31 0000737207 us-gaap:SeriesCPreferredStockMember 2023-01-01 2023-03-31 0000737207 us-gaap:SeriesCPreferredStockMember 2022-01-01 2022-03-31 0000737207 us-gaap:SeriesDPreferredStockMember 2023-01-01 2023-03-31 0000737207 us-gaap:SeriesDPreferredStockMember 2022-01-01 2022-03-31 0000737207 us-gaap:SeriesEPreferredStockMember 2023-01-01 2023-03-31 0000737207 us-gaap:SeriesEPreferredStockMember 2022-01-01 2022-03-31 0000737207 us-gaap:SeriesFPreferredStockMember 2023-01-01 2023-03-31 0000737207 us-gaap:SeriesFPreferredStockMember 2022-01-01 2022-03-31 0000737207 ATRX:TwoThousandNineteenTermLoanMember 2023-03-31 0000737207 ATRX:TwoThousandNineteenTermLoanMember 2022-12-31 0000737207 ATRX:TwoThousandTwentyTwoTermLoanMember 2023-03-31 0000737207 ATRX:TwoThousandTwentyTwoTermLoanMember 2022-12-31 0000737207 ATRX:TwoThousandTwentyThreeTermLoanMember 2023-03-31 0000737207 ATRX:TwoThousandTwentyThreeTermLoanMember 2022-12-31 0000737207 ATRX:AccreditedInvestorsMember ATRX:TermLoanSubscriptionAgreementsMember 2019-12-31 0000737207 ATRX:AccreditedInvestorsMember ATRX:TermLoanSubscriptionAgreementsMember 2019-12-27 2019-12-28 0000737207 ATRX:AccreditedInvestorsMember ATRX:TermLoanSubscriptionAgreementsMember 2019-01-01 2019-12-31 0000737207 ATRX:AccreditedInvestorsMember ATRX:TermLoanSubscriptionAgreementsMember 2022-11-16 2022-11-16 0000737207 ATRX:AccreditedInvestorsMember ATRX:TermLoanSubscriptionAgreementsMember 2022-11-16 0000737207 ATRX:AccreditedInvestorsMember ATRX:TermLoanSubscriptionAgreementsMember 2023-01-01 2023-03-31 0000737207 ATRX:AccreditedInvestorsMember ATRX:TermLoanSubscriptionAgreementsMember 2022-01-01 2022-03-31 0000737207 ATRX:AccreditedInvestorsMember ATRX:TermLoanSubscriptionAgreementsMember 2023-03-31 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:InvestorsMember 2022-05-11 0000737207 ATRX:InvestorsMember ATRX:SecuritiesPurchaseAgreementMember 2022-05-07 2022-05-11 0000737207 ATRX:InvestorsMember ATRX:SecuritiesPurchaseAgreementMember us-gaap:CommonStockMember 2022-05-07 2022-05-11 0000737207 ATRX:InvestorsMember ATRX:SecuritiesPurchaseAgreementMember us-gaap:WarrantMember 2022-05-07 2022-05-11 0000737207 ATRX:SecuritiesPurchaseAgreementMember 2023-01-10 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:InvestorsMember 2023-01-01 2023-03-31 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:InvestorsMember 2022-01-01 2022-03-31 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:InvestorsMember 2023-03-31 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:AccreditedInvestorsMember 2022-12-14 0000737207 ATRX:AccreditedInvestorsMember ATRX:SecuritiesPurchaseAgreementMember 2022-12-14 2022-12-14 0000737207 2022-12-14 2022-12-14 0000737207 ATRX:AccreditedInvestorsMember ATRX:SecuritiesPurchaseAgreementMember us-gaap:CommonStockMember 2022-12-14 2022-12-14 0000737207 ATRX:AccreditedInvestorsMember ATRX:SecuritiesPurchaseAgreementMember us-gaap:WarrantMember 2022-12-14 2022-12-14 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:AccreditedInvestorsMember 2023-01-10 0000737207 ATRX:AccreditedInvestorsMember ATRX:SecuritiesPurchaseAgreementMember 2023-01-01 2023-03-31 0000737207 ATRX:AccreditedInvestorsMember ATRX:SecuritiesPurchaseAgreementMember 2022-01-01 2022-03-31 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:AccreditedInvestorsMember 2023-03-31 0000737207 ATRX:IssuanceOfPromissoryNoteMember ATRX:SecuritiesPurchaseAgreementMember 2023-01-18 0000737207 ATRX:IssuanceOfPromissoryNoteMember ATRX:SecuritiesPurchaseAgreementMember 2023-01-17 2023-01-18 0000737207 ATRX:IssuanceOfPromissoryNoteMember ATRX:SecuritiesPurchaseAgreementMember ATRX:MayTwoThousandTwentyTwoMember 2023-01-18 0000737207 ATRX:IssuanceOfPromissoryNoteMember ATRX:SecuritiesPurchaseAgreementMember ATRX:MayTwoThousandTwentyTwoMember 2023-01-01 2023-03-31 0000737207 2022-01-17 2022-01-18 0000737207 ATRX:IssuanceOfPromissoryNoteMember ATRX:SecuritiesPurchaseAgreementMember us-gaap:WarrantMember 2023-01-17 2023-01-18 0000737207 ATRX:IssuanceOfPromissoryNoteMember ATRX:SecuritiesPurchaseAgreementMember 2023-01-01 2023-03-31 0000737207 ATRX:IssuanceOfPromissoryNoteMember ATRX:SecuritiesPurchaseAgreementMember 2022-01-01 2022-03-31 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:IssuanceOfPromissoryNoteMember 2023-03-31 0000737207 ATRX:FebruaryThreeTermLoanMember ATRX:SecuritiesPurchaseAgreementMember 2023-02-03 0000737207 ATRX:FebruaryThreeTermLoanMember ATRX:SecuritiesPurchaseAgreementMember 2023-02-03 2023-02-03 0000737207 ATRX:FebruaryThreeTermLoanMember ATRX:SecuritiesPurchaseAgreementMember us-gaap:WarrantMember 2023-02-03 2023-02-03 0000737207 ATRX:FebruaryThreeTermLoanMember ATRX:SecuritiesPurchaseAgreementMember 2023-01-01 2023-03-31 0000737207 ATRX:FebruaryThreeTermLoanMember ATRX:SecuritiesPurchaseAgreementMember 2022-01-01 2022-03-31 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:FebruaryThreeTermLoanMember 2023-03-31 0000737207 ATRX:FebruarySixteenTermLoanMember ATRX:SecuritiesPurchaseAgreementMember 2023-02-16 0000737207 ATRX:FebruarySixteenTermLoanMember ATRX:SecuritiesPurchaseAgreementMember 2023-02-15 2023-02-16 0000737207 ATRX:IssuanceOfPromissoryNoteMember ATRX:SecuritiesPurchaseAgreementMember ATRX:FebruarySixteenTermLoanMember 2023-02-16 0000737207 ATRX:FebruarySixteenTermLoanMember 2023-02-15 2023-02-16 0000737207 ATRX:FebruarySixteenTermLoanMember ATRX:SecuritiesPurchaseAgreementMember us-gaap:WarrantMember 2023-02-15 2023-02-16 0000737207 ATRX:FebruarySixteenTermLoanMember ATRX:SecuritiesPurchaseAgreementMember 2023-01-01 2023-03-31 0000737207 ATRX:FebruarySixteenTermLoanMember ATRX:SecuritiesPurchaseAgreementMember 2022-01-01 2022-03-31 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:FebruarySixteenTermLoanMember 2023-03-31 0000737207 us-gaap:ConvertibleNotesPayableMember 2023-03-31 0000737207 ATRX:SecuredConvertiblePromissoryNoteFebruaryTwoThousandTwentyMember 2020-02-05 0000737207 ATRX:SecuredConvertiblePromissoryNoteFebruaryTwoThousandTwentyMember 2020-02-04 2020-02-05 0000737207 ATRX:SecuredConvertiblePromissoryNoteFebruaryTwoThousandTwentyMember 2020-06-15 0000737207 ATRX:SecuredConvertiblePromissoryNoteFebruaryTwoThousandTwentyMember 2020-05-05 0000737207 ATRX:SecuredConvertiblePromissoryNoteFebruaryTwoThousandTwentyMember 2020-05-04 2020-05-05 0000737207 ATRX:SecuredConvertiblePromissoryNoteFebruaryTwoThousandTwentyMember us-gaap:WarrantMember 2020-02-05 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:SecuredConvertiblePromissoryNoteFebruaryTwoThousandTwentyMember 2020-02-04 2020-02-05 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:SecuredConvertiblePromissoryNoteFebruaryTwoThousandTwentyMember 2020-02-05 0000737207 ATRX:SecuredConvertiblePromissoryNoteFebruaryTwoThousandTwentyMember us-gaap:ConvertibleDebtMember 2020-02-04 2020-02-05 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:AccreditedInvestorsMember 2022-01-26 2022-01-27 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:AccreditedInvestorsMember 2022-01-27 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:AccreditedInvestorsMember 2023-01-09 2023-01-10 0000737207 ATRX:SecuritiesPurchaseAgreementMember ATRX:AccreditedInvestorsMember 2022-01-10 0000737207 ATRX:SecuredConvertiblePromissoryNoteFebruaryTwoThousandTwentyMember us-gaap:RelatedPartyMember 2023-01-01 2023-03-31 0000737207 ATRX:SecuredConvertiblePromissoryNoteFebruaryTwoThousandTwentyMember us-gaap:RelatedPartyMember 2022-01-01 2022-03-31 0000737207 ATRX:FebruaryTwoThousandTwentyConvertibleNoteMember ATRX:SecuredConvertiblePromissoryNoteFebruaryTwoThousandTwentyMember 2023-03-31 0000737207 ATRX:FebruaryTwoThousandTwentyConvertibleNoteMember ATRX:SecuredConvertiblePromissoryNoteFebruaryTwoThousandTwentyMember 2023-01-01 2023-03-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteMember ATRX:ConvertibleNoteMember 2020-06-26 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteMember ATRX:ConvertibleNoteMember 2020-06-25 2020-06-26 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteMember ATRX:ConvertibleNoteMember 2020-08-05 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteMember ATRX:ConvertibleNoteMember 2019-08-05 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteMember ATRX:ConvertibleNoteMember 2022-01-26 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteMember ATRX:ConvertibleNoteMember 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteMember ATRX:ConvertibleNoteMember 2023-01-09 2023-01-10 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteMember ATRX:ConvertibleNoteMember 2023-01-10 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteMember ATRX:ConvertibleNoteMember 2023-01-01 2023-03-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteMember ATRX:ConvertibleNoteMember 2022-01-01 2022-03-31 0000737207 ATRX:SecuredConvertiblePromissoryNoteMember us-gaap:ConvertibleDebtMember 2023-03-31 0000737207 ATRX:SecuredConvertiblePromissoryNoteMember us-gaap:ConvertibleDebtMember 2023-01-01 2023-03-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember 2020-10-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember 2020-10-29 2020-10-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember 2021-03-19 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember 2021-04-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember us-gaap:MeasurementInputRiskFreeInterestRateMember 2021-03-19 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember us-gaap:MeasurementInputPriceVolatilityMember 2021-03-19 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember us-gaap:WarrantMember 2020-10-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember us-gaap:ConvertibleDebtMember 2020-10-29 2020-10-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember us-gaap:ConvertibleDebtMember 2020-10-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember srt:MinimumMember 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember srt:MaximumMember 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember srt:MinimumMember 2023-01-10 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember srt:MaximumMember 2023-01-10 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember 2023-01-10 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember 2023-03-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember 2023-01-01 2023-03-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteOneMember 2022-01-01 2022-03-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember 2021-01-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember ATRX:InvestorAndLenderMember 2021-01-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember 2021-01-30 2021-01-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember 2021-03-19 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember us-gaap:MeasurementInputRiskFreeInterestRateMember 2021-03-19 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember us-gaap:MeasurementInputPriceVolatilityMember 2021-03-19 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember 2021-07-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember us-gaap:WarrantMember 2021-01-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember us-gaap:WarrantMember 2021-01-30 2021-01-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember us-gaap:MeasurementInputRiskFreeInterestRateMember us-gaap:WarrantMember 2021-01-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember us-gaap:MeasurementInputPriceVolatilityMember us-gaap:WarrantMember 2021-01-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember srt:MaximumMember 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember srt:MinimumMember 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember srt:MaximumMember 2023-01-10 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember srt:MinimumMember 2023-01-10 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember srt:MaximumMember 2023-03-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember 2023-01-01 2023-03-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember 2022-01-01 2022-03-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteTwoMember 2023-03-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember 2021-04-12 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember us-gaap:InvestorMember 2021-04-12 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember 2021-10-12 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember 2021-04-10 2021-04-12 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember us-gaap:WarrantMember 2021-04-10 2021-04-12 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember us-gaap:MeasurementInputRiskFreeInterestRateMember 2021-04-12 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember us-gaap:MeasurementInputPriceVolatilityMember 2021-04-12 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember 2021-06-25 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember us-gaap:WarrantMember 2021-06-25 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember us-gaap:MeasurementInputRiskFreeInterestRateMember us-gaap:WarrantMember 2021-06-25 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember us-gaap:MeasurementInputPriceVolatilityMember us-gaap:WarrantMember 2021-06-25 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember us-gaap:WarrantMember 2021-01-25 0000737207 ATRX:AprilTwoThousandTwentyOneConvertibleNoteMember 2021-11-03 2021-11-04 0000737207 ATRX:AprilTwoThousandTwentyOneConvertibleNoteMember 2021-11-04 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember 2021-11-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember srt:MaximumMember 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember srt:MinimumMember 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember us-gaap:CommonStockMember 2022-01-01 2022-12-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember srt:MaximumMember 2023-01-10 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember srt:MinimumMember 2023-01-10 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember 2023-01-10 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember ATRX:AprilTwoThousandAndTwentyOneSecuredConvertiblePromissoryNoteMember 2023-03-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember 2023-01-01 2023-03-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember ATRX:AprilTwoThousandAndTwentyOneSecuredConvertiblePromissoryNoteMember 2023-01-01 2023-03-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember ATRX:AprilTwoThousandAndTwentyOneSecuredConvertiblePromissoryNoteMember 2022-01-01 2022-03-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember 2023-03-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember 2021-06-25 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember us-gaap:CommonStockMember 2021-06-25 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember 2021-06-23 2021-06-25 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember us-gaap:WarrantMember 2021-06-25 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember us-gaap:WarrantMember 2021-06-23 2021-06-25 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember us-gaap:MeasurementInputRiskFreeInterestRateMember us-gaap:WarrantMember 2021-06-25 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember us-gaap:MeasurementInputPriceVolatilityMember us-gaap:WarrantMember 2021-06-25 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember us-gaap:WarrantMember 2021-08-11 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember us-gaap:MeasurementInputRiskFreeInterestRateMember us-gaap:WarrantMember 2021-08-11 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember us-gaap:MeasurementInputPriceVolatilityMember us-gaap:WarrantMember 2021-08-11 0000737207 us-gaap:WarrantMember ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember 2021-11-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember 2022-01-26 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember 2021-06-26 2021-06-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember us-gaap:ConvertibleDebtMember 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember ATRX:JuneTwoThousandAndTwentyOneSecuredConvertiblePromissoryNoteMember 2023-01-10 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember ATRX:JuneTwoThousandAndTwentyOneConvertiblePromissoryNoteMember 2023-03-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember ATRX:JuneTwoThousandAndTwentyOneSecuredConvertiblePromissoryNoteMember 2023-01-01 2023-03-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember ATRX:JuneTwoThousandAndTwentyOneSecuredConvertiblePromissoryNoteMember 2021-01-01 2021-12-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember ATRX:JuneTwoThousandAndTwentyOneSecuredConvertiblePromissoryNoteMember 2022-01-01 2022-03-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteThreeMember ATRX:JuneTwoThousandAndTwentyOneConvertiblePromissoryNoteMember 2023-03-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember 2021-08-11 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember ATRX:RegistrationRightsAgreementMember 2021-08-10 2021-08-11 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember srt:MinimumMember 2021-08-11 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember 2021-08-10 2021-08-11 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember 2021-11-08 2021-11-09 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember us-gaap:WarrantMember 2021-08-11 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember us-gaap:CommonStockMember 2021-08-10 2021-08-11 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember us-gaap:CommonStockMember 2021-08-11 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember us-gaap:ConvertibleDebtMember 2021-08-11 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember us-gaap:MeasurementInputRiskFreeInterestRateMember us-gaap:WarrantMember 2021-08-11 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember us-gaap:MeasurementInputPriceVolatilityMember us-gaap:WarrantMember 2021-08-11 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember 2021-11-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember 2022-01-26 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember ATRX:AugustElevenTwoThousandAndTwentyOneConvertiblePromissoryNoteMember 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember 2022-05-07 2022-05-12 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember 2022-05-12 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember 2023-01-10 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember 2023-01-10 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember 2023-01-09 2023-01-10 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember ATRX:AugustElevenTwoThousandAndTwentyOneConvertiblePromissoryNoteMember 2023-01-10 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember ATRX:AugustElevenTwoThousandAndTwentyOneConvertiblePromissoryNoteMember 2023-03-31 0000737207 ATRX:AugustElevenTwoThousandAndTwentyOneConvertiblePromissoryNoteMember ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember 2023-03-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember ATRX:AugustElevenTwoThousandAndTwentyOneConvertiblePromissoryNoteMember 2023-01-01 2023-03-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember ATRX:AugustElevenTwoThousandAndTwentyOneConvertiblePromissoryNoteMember 2022-01-01 2022-03-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFiveMember 2023-03-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember 2021-08-17 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember ATRX:RegistrationRightsAgreementMember 2021-08-15 2021-08-17 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember srt:MinimumMember 2021-08-17 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember 2021-08-15 2021-08-17 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember us-gaap:WarrantMember 2021-08-17 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember us-gaap:CommonStockMember 2021-08-15 2021-08-17 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember us-gaap:WarrantMember 2021-08-15 2021-08-17 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember us-gaap:CommonStockMember 2021-08-17 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember us-gaap:ConvertibleDebtMember 2021-08-17 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember us-gaap:MeasurementInputRiskFreeInterestRateMember us-gaap:WarrantMember 2021-08-17 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember us-gaap:MeasurementInputPriceVolatilityMember us-gaap:WarrantMember 2021-08-17 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember us-gaap:MeasurementInputRiskFreeInterestRateMember us-gaap:WarrantMember 2021-11-13 2021-11-15 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember us-gaap:ConvertibleDebtMember 2021-11-30 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember 2022-01-26 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember ATRX:AugustSeventeenTwoThousandAndTwentyOneConvertiblePromissoryNoteMember 2022-01-27 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember 2023-01-09 2023-01-10 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember ATRX:AugustSeventeenTwoThousandAndTwentyOneConvertiblePromissoryNoteMember 2023-01-10 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember ATRX:SeniorSecuredConvertiblePromissoryNoteSevenMember 2023-03-31 0000737207 ATRX:AugustSeventeenTwoThousandAndTwentyOneConvertiblePromissoryNoteMember ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember 2023-03-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember 2023-01-01 2023-03-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember 2022-01-01 2022-03-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember 2023-03-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteSixMember 2022-03-31 0000737207 ATRX:SecuredConvertiblePromissoryNoteSevenMember 2021-10-04 0000737207 ATRX:SecuredConvertiblePromissoryNoteSevenMember 2021-10-02 2021-10-04 0000737207 ATRX:SecuredConvertiblePromissoryNoteSevenMember ATRX:RegistrationRightsAgreementMember 2021-10-02 2021-10-04 0000737207 ATRX:SecuredConvertiblePromissoryNoteSevenMember us-gaap:WarrantMember 2021-10-04 0000737207 ATRX:SecuredConvertiblePromissoryNoteSevenMember us-gaap:CommonStockMember 2021-10-04 0000737207 ATRX:SecuredConvertiblePromissoryNoteSevenMember 2022-01-02 0000737207 ATRX:SecuredConvertiblePromissoryNoteSevenMember 2022-01-27 0000737207 ATRX:SecuredConvertiblePromissoryNoteSevenMember 2022-05-07 2022-05-12 0000737207 us-gaap:CommonStockMember ATRX:SecuredConvertiblePromissoryNoteSevenMember 2022-05-07 2022-05-12 0000737207 ATRX:SecuredConvertiblePromissoryNoteSevenMember us-gaap:ConvertibleDebtMember 2022-05-07 2022-05-12 0000737207 ATRX:SecuredConvertiblePromissoryNoteSevenMember ATRX:OctoberFourTwoThousandAndTwentyOneConvertiblePromissoryNoteMember 2022-05-07 2022-05-12 0000737207 ATRX:SecuredConvertiblePromissoryNoteSevenMember 2023-01-10 0000737207 ATRX:SecuredConvertiblePromissoryNoteSevenMember 2023-03-04 2023-03-09 0000737207 ATRX:SecuredConvertiblePromissoryNoteSevenMember 2023-01-01 2023-03-31 0000737207 ATRX:SecuredConvertiblePromissoryNoteSevenMember 2022-01-01 2022-03-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteFourMember ATRX:OctoberFourTwoThousandAndTwentyOneConvertiblePromissoryNoteMember 2023-03-31 0000737207 ATRX:SecuredConvertiblePromissoryNoteSevenMember ATRX:OctoberFourTwoThousandAndTwentyOneConvertiblePromissoryNoteMember 2023-03-31 0000737207 ATRX:SecuredConvertiblePromissoryNoteEightMember 2021-10-07 0000737207 ATRX:SecuredConvertiblePromissoryNoteEightMember 2021-10-03 2021-10-07 0000737207 ATRX:SecuredConvertiblePromissoryNoteEightMember ATRX:RegistrationRightsAgreementMember 2021-10-03 2021-10-07 0000737207 ATRX:SecuredConvertiblePromissoryNoteEightMember us-gaap:WarrantMember 2021-10-07 0000737207 ATRX:SecuredConvertiblePromissoryNoteEightMember us-gaap:CommonStockMember 2021-10-07 0000737207 ATRX:SecuredConvertiblePromissoryNoteEightMember us-gaap:ConvertibleDebtMember 2021-10-07 0000737207 2022-01-04 2022-01-05 0000737207 ATRX:SecuredConvertiblePromissoryNoteEightMember 2022-01-27 0000737207 ATRX:SecuredConvertiblePromissoryNoteEightMember 2022-05-07 2022-05-12 0000737207 us-gaap:CommonStockMember ATRX:SecuredConvertiblePromissoryNoteEightMember 2022-05-07 2022-05-12 0000737207 ATRX:SecuredConvertiblePromissoryNoteEightMember us-gaap:ConvertibleDebtMember 2022-01-01 2022-12-31 0000737207 ATRX:SecuredConvertiblePromissoryNoteEightMember 2023-01-10 0000737207 ATRX:SecuredConvertiblePromissoryNoteEightMember 2023-01-01 2023-03-31 0000737207 ATRX:SecuredConvertiblePromissoryNoteEightMember 2022-01-01 2022-03-31 0000737207 ATRX:SecuredConvertiblePromissoryNoteEightMember 2023-03-31 0000737207 ATRX:SecuredConvertiblePromissoryNoteNineMember 2022-03-15 0000737207 ATRX:SecuredConvertiblePromissoryNoteNineMember 2022-03-13 2022-03-15 0000737207 ATRX:SecuredConvertiblePromissoryNoteNineMember us-gaap:InvestorMember 2022-03-13 2022-03-15 0000737207 ATRX:SecuredConvertiblePromissoryNoteNineMember us-gaap:CommonStockMember 2022-03-15 0000737207 ATRX:SecuredConvertiblePromissoryNoteNineMember us-gaap:ConvertibleDebtMember 2022-03-15 0000737207 2022-09-16 2022-09-16 0000737207 us-gaap:RelatedPartyMember 2022-09-16 2022-09-16 0000737207 ATRX:SecuredConvertiblePromissoryNoteNineMember 2022-01-01 2022-12-31 0000737207 us-gaap:ConvertibleDebtMember 2023-01-09 2023-01-10 0000737207 us-gaap:ConvertibleDebtMember 2023-01-10 0000737207 us-gaap:CommonStockMember 2023-01-09 2023-01-10 0000737207 ATRX:SecuredConvertiblePromissoryNoteNineMember 2023-01-20 2023-01-23 0000737207 ATRX:SecuredConvertiblePromissoryNoteNineMember 2023-01-28 2023-02-01 0000737207 ATRX:SecuredConvertiblePromissoryNoteNineMember 2023-02-14 2023-02-17 0000737207 ATRX:SecuredConvertiblePromissoryNoteNineMember 2023-03-10 2023-03-13 0000737207 ATRX:SecuredConvertiblePromissoryNoteNineMember 2023-01-01 2023-03-31 0000737207 ATRX:SecuredConvertiblePromissoryNoteNineMember 2022-01-01 2022-03-31 0000737207 ATRX:SecuredConvertiblePromissoryNoteNineMember 2023-03-31 0000737207 2021-01-01 2021-12-31 0000737207 ATRX:SecuredConvertiblePromissoryNoteTwoMember us-gaap:WarrantMember 2023-03-31 0000737207 ATRX:SecuredConvertiblePromissoryNoteTwoMember us-gaap:WarrantMember 2023-01-01 2023-03-31 0000737207 us-gaap:ConvertibleDebtMember 2023-01-31 0000737207 us-gaap:MeasurementInputExpectedDividendRateMember 2023-03-31 0000737207 us-gaap:MeasurementInputExpectedTermMember srt:MinimumMember 2023-03-31 0000737207 us-gaap:MeasurementInputExpectedTermMember srt:MaximumMember 2023-03-31 0000737207 us-gaap:MeasurementInputPriceVolatilityMember srt:MinimumMember 2023-03-31 0000737207 us-gaap:MeasurementInputPriceVolatilityMember srt:MaximumMember 2023-03-31 0000737207 us-gaap:MeasurementInputRiskFreeInterestRateMember srt:MinimumMember 2023-03-31 0000737207 us-gaap:MeasurementInputRiskFreeInterestRateMember srt:MaximumMember 2023-03-31 0000737207 ATRX:LesLaboratoriesServierLicenseAgreementMember 2023-01-01 2023-03-31 0000737207 ATRX:LesLaboratoriesServierLicenseAgreementMember 2022-01-01 2022-03-31 0000737207 us-gaap:AccruedLiabilitiesMember ATRX:SublicensingAgreementMember 2018-03-15 2018-03-16 0000737207 us-gaap:RelatedPartyMember 2023-03-31 0000737207 us-gaap:RelatedPartyMember 2022-12-31 0000737207 ATRX:OfficersAndDirectorsMember us-gaap:RelatedPartyMember 2023-03-31 0000737207 ATRX:OfficersAndDirectorsMember us-gaap:RelatedPartyMember 2022-12-31 0000737207 us-gaap:SeriesBPreferredStockMember 2023-03-31 0000737207 ATRX:SeriesAJuniorParticipatingPreferredStockMember 2023-03-31 0000737207 us-gaap:SeriesAPreferredStockMember 2023-03-31 0000737207 us-gaap:SeriesAPreferredStockMember 2022-03-31 0000737207 ATRX:SeriesCconvertiblePreferredStockMember 2014-03-31 0000737207 ATRX:SeriesDConvertiblePreferredStockMember 2015-08-31 0000737207 ATRX:SeriesEConvertiblePreferredStockMember 2018-04-30 0000737207 ATRX:SeriesFConvertiblePreferredStockMember 2018-07-31 0000737207 ATRX:SeriesGConvertiblePreferredStockMember 2019-12-31 0000737207 us-gaap:SeriesCPreferredStockMember 2023-03-31 0000737207 us-gaap:SeriesCPreferredStockMember 2023-01-01 2023-03-31 0000737207 us-gaap:SeriesDPreferredStockMember 2023-03-31 0000737207 us-gaap:SeriesDPreferredStockMember 2023-01-01 2023-03-31 0000737207 ATRX:SeriesEConvertiblePreferredStockAndWarrantsMember 2023-03-31 0000737207 ATRX:SeriesEConvertiblePreferredStockAndWarrantsMember 2023-01-01 2023-03-31 0000737207 ATRX:SeriesEWarrantsMember srt:MaximumMember 2021-03-19 0000737207 ATRX:SeriesEWarrantsMember srt:MinimumMember 2021-03-19 0000737207 ATRX:SeriesEWarrantsMember 2021-03-18 2021-03-19 0000737207 ATRX:SeriesEPreferredStocksMember 2022-01-27 0000737207 ATRX:SeriesEPreferredStocksMember srt:MaximumMember 2022-01-27 0000737207 ATRX:SeriesEPreferredStocksMember 2022-05-03 2022-05-17 0000737207 ATRX:SeriesEPreferredStocksMember 2022-05-17 0000737207 ATRX:SeriesEPreferredStocksMember 2023-01-10 0000737207 ATRX:SeriesEPreferredStocksMember srt:MaximumMember 2023-01-10 0000737207 ATRX:SeriesEPreferredStocksMember 2023-03-31 0000737207 ATRX:SeriesFConvertiblePreferredStockAndWarrantsMember 2023-03-31 0000737207 ATRX:SeriesFConvertiblePreferredStockAndWarrantsMember 2023-01-01 2023-03-31 0000737207 ATRX:SeriesFWarrantsMember srt:MaximumMember 2021-03-19 0000737207 ATRX:SeriesFWarrantsMember srt:MinimumMember 2021-03-19 0000737207 ATRX:SeriesFWarrantsMember 2021-03-18 2021-03-19 0000737207 us-gaap:SeriesFPreferredStockMember 2021-03-18 2021-03-19 0000737207 us-gaap:MeasurementInputRiskFreeInterestRateMember us-gaap:SeriesFPreferredStockMember 2021-03-19 0000737207 us-gaap:MeasurementInputPriceVolatilityMember us-gaap:SeriesFPreferredStockMember 2021-03-19 0000737207 us-gaap:SeriesFPreferredStockMember srt:MinimumMember 2021-03-19 0000737207 us-gaap:SeriesFPreferredStockMember srt:MaximumMember 2021-03-19 0000737207 ATRX:SeriesFPreferredStocksMember srt:MaximumMember 2022-01-27 0000737207 ATRX:SeriesFWarrantsMember srt:MaximumMember 2022-01-27 0000737207 ATRX:SeriesFPreferredAndAccruedDividendMember 2022-05-17 0000737207 ATRX:SeriesFPreferredAndAccruedDividendMember 2022-05-03 2022-05-17 0000737207 ATRX:SeriesFPreferredStocksMember srt:MaximumMember 2023-01-10 0000737207 ATRX:SeriesFWarrantsMember srt:MaximumMember 2023-01-10 0000737207 us-gaap:SeriesFPreferredStockMember 2023-03-31 0000737207 ATRX:SeriesGConvertiblePreferredSharesMember 2023-03-31 0000737207 ATRX:SeriesGConvertiblePreferredSharesMember 2023-01-01 2023-03-31 0000737207 us-gaap:SeriesGPreferredStockMember 2023-03-31 0000737207 us-gaap:SeriesGPreferredStockMember 2022-12-31 0000737207 ATRX:ConvertibleNoteInvestorMember 2022-01-26 2022-01-27 0000737207 ATRX:ConvertibleNoteInvestorMember 2022-01-27 0000737207 ATRX:ConvertibleNoteInvestorMember 2021-06-26 2021-06-27 0000737207 ATRX:ConvertibleNoteInvestorMember 2022-03-12 2022-03-15 0000737207 ATRX:BankingAgreementMember 2022-03-12 2022-03-15 0000737207 ATRX:BankingAgreementMember 2022-05-09 2022-05-11 0000737207 ATRX:SeriesEPreferredAndAccruedDividendsMember 2022-05-17 0000737207 ATRX:SeriesFPreferredStocksMember 2022-05-03 2022-05-17 0000737207 ATRX:SeriesFPreferredStocksMember 2022-05-17 0000737207 ATRX:FebruaryTwoThousandTwentyConvertibleNoteMember 2023-01-07 2023-01-10 0000737207 ATRX:SeriesEPreferredAndAccruedDividendsMember 2023-01-10 0000737207 ATRX:CommitmentFeeMember 2022-05-04 2022-05-12 0000737207 ATRX:CommitmentFeeMember 2022-05-12 0000737207 us-gaap:WarrantMember 2023-03-31 0000737207 ATRX:SeniorSecuredConvertiblePromissoryNoteMember us-gaap:ConvertibleDebtMember 2023-01-31 0000737207 us-gaap:SeriesEPreferredStockMember 2023-03-31 0000737207 us-gaap:SeriesFPreferredStockMember 2023-03-31 0000737207 us-gaap:BridgeLoanMember 2023-03-31 0000737207 ATRX:ConvertibleNotesMember 2023-03-31 0000737207 ATRX:OtherMember 2023-03-31 0000737207 us-gaap:EmployeeStockOptionMember 2023-01-01 2023-03-31 0000737207 ATRX:RangeOneMember 2023-01-01 2023-03-31 0000737207 ATRX:RangeOneMember 2023-03-31 0000737207 ATRX:LicensingAgreementMLR1019Member 2021-07-27 2021-07-28 0000737207 ATRX:LicensingAgreementMLR1023Member 2021-08-20 2021-08-20 0000737207 ATRX:LicensingAgreementMLR1023Member 2021-11-16 2021-11-17 0000737207 ATRX:LicensingAgreementMLR1023Member 2022-02-02 2022-02-16 0000737207 ATRX:LicensingAgreementMember 2022-07-18 2022-07-18 0000737207 ATRX:LicensingAgreementMember ATRX:ChiefScientificOfficerMember 2022-07-18 2022-07-18 0000737207 us-gaap:SubsequentEventMember us-gaap:ConvertibleDebtMember 2023-04-13 2023-04-14 0000737207 us-gaap:SubsequentEventMember us-gaap:ConvertibleDebtMember 2023-04-14 0000737207 us-gaap:SubsequentEventMember us-gaap:CommonStockMember 2023-04-13 2023-04-14 0000737207 us-gaap:SubsequentEventMember us-gaap:ConvertibleDebtMember 2023-04-27 2023-04-28 0000737207 us-gaap:SubsequentEventMember us-gaap:ConvertibleDebtMember 2023-04-28 0000737207 us-gaap:SubsequentEventMember us-gaap:CommonStockMember 2023-04-27 2023-04-28 0000737207 us-gaap:SubsequentEventMember us-gaap:ConvertibleDebtMember 2023-05-10 2023-05-10 0000737207 us-gaap:SubsequentEventMember us-gaap:ConvertibleDebtMember 2023-05-10 0000737207 us-gaap:SubsequentEventMember us-gaap:CommonStockMember 2023-05-10 2023-05-10 0000737207 us-gaap:SubsequentEventMember ATRX:IssuanceOfPromissoryNoteMember ATRX:SecuritiesPurchaseAgreementMember 2023-04-28 0000737207 us-gaap:SubsequentEventMember ATRX:IssuanceOfPromissoryNoteMember ATRX:SecuritiesPurchaseAgreementMember 2023-04-27 2023-04-28 0000737207 ATRX:IssuanceOfPromissoryNoteMember us-gaap:SubsequentEventMember ATRX:SecuritiesPurchaseAgreementMember ATRX:MayTwoThousandTwentyThreeMember 2023-04-28 0000737207 us-gaap:SubsequentEventMember 2023-05-01 2023-05-02 0000737207 ATRX:ConvertiblePromissoryNoteMember us-gaap:SubsequentEventMember 2023-05-11 0000737207 ATRX:SeriesEPreferredStocksMember us-gaap:SubsequentEventMember 2023-05-17 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure ATRX:Integer

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended: ~~September~~March 3031, ~~2022~~2023

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

For the transition period from _____________ to _____________.

Commission File Number: 000-13789

ADHERA THERAPEUTICS, INC.

(Exact name of registrant as specified in its charter)

Delaware

11-2658569

(State or other jurisdiction of

incorporation or organization)

(IRS Employer

Identification No.)

8000 Innovation Parkway

Baton Rouge, LA

70820

(Address of principal executive offices)

(Zip Code)

(919) 518-3748

(Registrant’s telephone number, including area code)

N/A

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

Securities registered pursuant to Section 12(b) of the Act: None

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, a 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	☐

Non-accelerated filer	☒	Smaller reporting company	☒

		Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to13(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 ~~November~~May 1422, ~~2022~~2023, there were 3,~~160~~489,~~877~~454 shares of the registrant’s common stock outstanding.

ADHERA THERAPEUTICS, INC.

FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED ~~SEPTEMBER~~MARCH 3031, ~~2022~~2023

TABLE OF CONTENTS

		~~Page~~	Page
PART I - FINANCIAL INFORMATION
ITEM 1	Financial Statements	3	3
	Consolidated Balance Sheets as of September 30, 2022 (unaudited) and December 31, 2021	3
	Consolidated Balance Sheets as of March 31, 2023 (unaudited) and December 31, 2022		3
	Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2022, and 2021 (unaudited)	4
	Consolidated Statements of Operations for the Three Months Ended March 31, 2023, and 2022 (unaudited)		4
	Consolidated Statements of Stockholders’ Deficit for the Three and Nine Months Ended September 30, 2022, and 2021 (unaudited)	5
	Consolidated Statements of Stockholders’ Deficit for the Three Months Ended March 31, 2023, and 2022 (unaudited)		5
	Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2022, and 2021 (unaudited)	6
	Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2023, and 2022 (unaudited)		6
	Notes to Unaudited Condensed Consolidated Financial Statements	7
	Condensed Notes to Unaudited Consolidated Financial Statements		7
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	35	41
ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	40	47
ITEM 4.	Controls and Procedures	40	47
PART II - OTHER INFORMATION
ITEM 1.	Legal Proceedings	41	48
ITEM 1A.	Risk Factors	41	48
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	41	48
ITEM 3.	Defaults on Senior Securities	42	49
ITEM 4.	Mine Safety Disclosures	42	49
ITEM 5.	Other Information	42	49
ITEM 6.	Exhibits	42	49
SIGNATURES		44	51

PART I - FINANCIAL INFORMATION

ITEM I – FINANCIAL INFORMATION

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands except share and per share data)

	September 30, 2022			December 31, 2021
	March 31, 2023			December 31, 2022
	(unaudited)
ASSETS
Current assets
Cash	$	~~133~~69		$	7632
Prepaid expenses		~~123~~35			~~120~~47
Total current assets		~~256~~104			~~196~~79
Total assets	$	~~256~~104		$	~~196~~79
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities
Accounts payable	$	2,~~312~~410		$	2,~~309~~397
Due to related parties		521			4626
Accrued expenses		4,~~041~~725			34,~~110~~373
Accrued dividends		~~453~~525			~~5,477~~498
Term loans		6,870			5,677
Term loans, net		8,398			7,333
Convertible notes payable, net		1,122			986
Convertible notes payable, net of discounts		1,228			1,252
Derivative liabilities		7,260			7,697
Derivative liability		5,890			6,386
Total current liabilities		2223,~~063~~197			2522,~~302~~265
Total liabilities		2223,~~063~~197			2522,~~302~~265
Commitments and contingencies (Note 9)		-			-
Stockholders’ deficit
Preferred stock, $0.01 par value; 100,000 shares authorized		—			—
Series C convertible preferred stock, $0.01 par value; 1,200 shares designated; 100 shares issued and outstanding as of March 31, 2023 and December 31, 2022. ($510,000 liquidation preference)		—			—
Series D convertible preferred stock, $0.01 par value; 220 shares designated; 40 shares issued and outstanding as of March 31, 2023, and December 31, 2022. ($12,000 liquidation preference)		—			—
Series E convertible preferred stock, $0.01 par value; 3,500 shares designated; 267 shares issued and outstanding as of March 31, 2023, and December 31, 2022, respectively. ($1,859,787 liquidation preference)		—			—
Series F convertible preferred stock, $0.01 par value; 2,200 shares designated; no shares issued and outstanding as of March 31, 2023, and December 31, 2022.		—			—
Series G convertible preferred stock, $0.01 par value; 6,000 shares designated; no shares issued and outstanding as of March 31, 2023, and December 31, 2022.		—			—
Preferred stock, value		—			—
Series C convertible preferred stock, $0.01 par value; 1,200 shares authorized; 100 shares issued and outstanding as of September 30, 2022 and December 31, 2021. ($510,000 liquidation preference)		—			—
Common stock, $0.006 par value; 180,000,000 shares authorized, 3,178,738 and 3,160,877 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively		19			19
Series D convertible preferred stock, $0.01 par value; 220 shares authorized; 40 shares issued and outstanding as of September 30, 2022 and December 31, 2021. ($12,000 liquidation preference)		—			—
Additional paid-in capital		33,553			33,548
Series E convertible preferred stock, $0.01 par value; 3,500 shares authorized; 267 and 3,326 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively. ($1,788,319 liquidation preference)		—			—
Accumulated deficit		(56,663	)		(55,751	)
Series F convertible preferred stock, $0.01 par value; 2,200 shares authorized; zero and 358 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively.		—			—
Treasury Stock (5,594 shares)		(2	)		(2	)
Series G convertible preferred stock, $0.01 par value; $5,000 liquidation preference; 6,000 shares authorized; no shares issued and outstanding as of September 30, 2022, and December 31, 2021.		—			—
Total stockholders’ deficit		(23,093	)		(22,186	)
Common stock, $0.006 par value; 180,000,000 shares authorized, 3,160,877 and 853,946 shares issued and outstanding as of September 30, 2022, and December 31, 2021, respectively		18			5
Total liabilities and stockholders’ deficit	$	104		$	79
Additional paid-in capital		33,547			27,906
Accumulated deficit		(55,370	)		(53,017	)
Treasury stock (5,954 shares)		(2	)		—
Total stockholders’ deficit		(21,807	)		(25,106	)
Total liabilities and stockholders’ deficit	$	256		$	196

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

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands except share and per share data)

(unaudited)

	2022			2021			2022			2021
	2023			2022
	For the Three-Months ended						For the Nine-Months ended
	For the Three-Months Ended March 31,
	September 30,						September 30,
	2023			2022
	2022			2021			2022			2021
Operating expenses
Operating expenses
General and administrative	$	353		$	260
Sales and marketing	$	-		$	-		$	-		$	17
Total operating expenses		353			260
General and administrative		548			232			1,257			454
Loss from operations		(353	)		(260	)
Total operating expenses		548			232			1,257			471
Other income (expense)
Loss from operations		(548	)		(232	)		(1,257	)		(471	)
Interest expense, net		(334	)		(311	)
Other income (expense)
Initial and change in fair value of derivative liability		717			667
Interest expense		(317	)		(261	)		(989	)		(749	)
Gain on extinguishment of debt		39			5
Initial and change in the fair value of derivative liabilities		(254	)		(2,968	)		1,425			(3,055	)
Loan inducement fee		(347	)		—
Gain (loss) on extinguishment of debt		92			(177	)		307			(177	)
Amortization of debt discount		(608	)		(175	)
Amortization of debt discount		(777	)		(101	)		(1,265	)		(230	)
Total other income (expense)		(533	)		186
Total other expense, net		(1,256	)		(3,507	)		(522	)		(4,211	)
Loss before provision for income taxes		(533	)		(74	)
Net loss		(1,804	)		(3,739	)		(1,779	)		(4,682	)
Provision for income taxes		—			—
Accrued and deemed dividends		(8	)		(406	)		(574	)		(1,679	)
Net loss		(886	)		(74	)
Net Loss Applicable to Common Stockholders	$	(1,812	)	$	(4,145	)	$	(2,353	)	$	(6,361	)
Accrued and deemed dividends		(26	)		(364	)
Net loss per share – Common Stockholders - basic and diluted	$	(0.57	)	$	(6.38	)	$	(1.16	)	$	(10.83	)
Net Loss Applicable to Common Stockholders	$	(912	)	$	(438	)
Weighted average shares outstanding - basic and diluted		3,160,877			649,321			2,019,953			587,117
Net loss per share - Common Stockholders, basic and diluted	$	(0.29	)	$	(0.51	)
Weighted average shares outstanding, basic and diluted		3,176,952			858,959

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

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ (DEFICIT)

(in thousands, except share and per share ~~data~~amounts)

	Number		Par Value		Number		Par Value		Number			Par Value		Number			Par Value		Number			Par Value		Paid-in Capital			Accumulated Deficit			Treasury Stock			Total
	Series C Preferred Stock				Series D Preferred Stock				Series E Preferred Stock					Series F Preferred Stock					Common Stock					Additional
	Number		Par Value		Number		Par Value		Number			Par Value		Number			Par Value		Number			Par Value		Paid-in Capital			Accumulated Deficit			Treasury Stock			Total
Balance as of December 31, 2020		100	$	-		40	$	-		3,458			-		361		$	-		560,140		$	3	$	29,836		$	(44,612	)	$	-		$	(14,773	)
Accrued dividend		-		-		-		-		-			-		-			-		-			-		505			(882	)		-		$	(377	)
Issuance of common stock for term loan conversion		-		-		-		-		-			-		-			-		25,900			-		26			-			-		$	26
Issuance of warrants with convertible notes		-		-		-		-		-			-		-			-		-			-		28			-			-		$	28
Beneficial conversion feature convertible notes		-		-		-		-		-			-		-			-		-			-		19			-			-		$	19
Net loss		-		-		-		-		-			-		-			-		-			-		-			(428	)		-		$	(428	)
Balance as of March 31, 2021		100	$	-		40	$	-		3,458		$	-		361		$	-		586,040			3	$	30,414		$	(45,922	)	$	-		$	(15,505	)
Accrued and deemed dividend		-		-		-		-		-			-		-			-		-			-		11			(392	)		-		$	(381	)
Issuance of warrants with convertible notes		-		-		-		-		-			-		-			-		-			-		69			-			-		$	69
Issuance of common stock for cashless exercise of warrants		-		-		-		-		-			-		-			-		2,679			-		-			-			-		$	-
Issuance of common stock for Series E conversion		-		-		-		-		(8	)		-		-			-		5,051			-		10			-			-		$	10
Net loss		-		-		-		-		-			-		-			-		-			-		-			(514	)		-		$	(514	)
Balance, June 30, 2021		100	$	-		40	$	-		3,450		$	-		361		$	-		593,770			3	$	30,504		$	(46,828	)	$	-		$	(16,340	)
Accrued and deemed dividend		-		-		-		-		-			-		-			-		-			-		25			(406	)	$	-		$	381
Reclassification of derivative from equity																				-			-		(21	)		-			-		$	(21)
Issuance of warrants and common stock with convertible notes		-		-		-		-		-			-		-			-		25,008			-		157			-			-		$	157
Issuance of common stock for convertible note conversions																				85,000			1		84			-			-		$	85
Issuance of common stock for Series E conversion		-		-		-		-		(50	)		-		-			-		25,000			-		-			-			-		$	-
Net loss		-		-		-		-		-			-		-			-		-			-		-			(3,739	)		-		$	(3,739	)
Balance, September 30, 2021		100	$	-		40	$	-		3,400		$	-		361		$	-		728,778		$	4	$	30,749		$	(50,973	)	$	-		$	(20,239	)
Balance as of December 31, 2021		100	$	-		40	$	-		3,326			-		358			-		853,946		$	5	$	27,906		$	(53,017	)	$	-		$	(25,106	)
Accrued dividend		-		-		-		-		-			-		-			-		-			-		-			(364	)		-		$	(364	)
Issuance of common stock with convertible notes		-		-		-		-		-			-		-			-		12,500			-		18			-			-		$	18
Issuance of common stock for convertible note conversions		-		-		-		-		-			-		-			-		12,721			-		28			-			-		$	28
Net loss		-		-		-		-		-			-		-			-		-			-		-			(74	)		-		$	(74	)
Balance as of March 31, 2022		100	$	-		40	$	-		3,326		$	-		358		$	-		879,167			5	$	27,952		$	(53,455	)	$	-		$	(25,498	)
Accrued dividend		-		-		-		-		-			-		-			-		-			-		-			(202	)		-		$	(202	)
Issuance of common stock with term loan		-		-		-		-		-			-		-			-		19,231			-		11			-			-		$	11
Conversion of Series E Preferred to common stock		-		-		-		-		(3,059	)		-		-			-		2,035,306			12		5,044			-			-		$	5,056
Conversion of Series F Preferred to common stock		-		-		-		-		-			-		(358	)		-		233,127			1		540			-			-		$	541
Repurchase of common stock								-		-			-		-			-		(5,954	)		-		-			-			(2	)	$	(2	)
Net loss		-		-		-		-		-			-		-			-		-			-		-			99			-		$	99
Balance as of June 30, 2022		100	$	-		40	$	-		267		$	-		-		$	-		3,160,877			18	$	33,547		$	(53,558	)	$	(2	)	$	(19,995	)
Accrued dividend		-		-		-		-		-			-		-			-		-			-		-			(8	)		-		$	(8	)
Net loss		-		-		-		-		-			-		-			-		-			-		-			(1,804	)		-		$	(1,804	)
Balance as of September 30, 2022		100	$	-		40	$	-		267		$	-		-		$	-		3,160,877			18	$	33,547		$	(55,370	)	$	(2	)	$	(21,807	)

(unaudited)

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


	Series C Preferred Stock				Series D Preferred Stock				Series E Preferred Stock				Series F Preferred Stock				Common Stock				Additional Paid-in		Accumulated			Treasury
	Number		Par Value		Number		Par Value		Number		Par Value		Number		Par Value		Number		Par Value		Capital		Deficit			Stock			Total

Balance as of December 31, 2021		100	$	-		40	$	-		3,326		-		358		-		853,946	$	5	$	27,906	$	(53,017	)	$	-		$	(25,106	)
Accrued dividend		-		-		-		-		-		-		-		-		-		-		-		(364	)		-		$	(364	)
Issuance of common stock with convertible notes		-		-		-		-		-		-		-		-		12,500		-		18		-			-		$	18
Issuance of common stock for convertible note conversions		-		-		-		-		-		-		-		-		12,721		-		28		-			-		$	28
Net loss		-		-		-		-		-		-		-		-		-		-		-		(74	)				$	(74	)
Balance as of March 31, 2022		100	$	-		40	$	-		3,326	$	-		358	$	-		879,167		5	$	27,952	$	(53,455	)	$	-		$	(25,498	)

Balance as of December 31, 2022		100		-		40		-		267	$	-		-	$	-		3,160,877	$	19	$	33,548	$	(55,751	)	$	(2	)	$	(22,186	)
Accrued dividend		-		-		-		-		-		-		-		-		-		-		-		(26	)		-		$	(26	)
Issuance of Common stock for convertible note conversions		-		-		-		-		-		-		-		-		17,861		-		5		-			-		$	5
Net Loss		-		-		-		-		-		-		-		-		-		-		-		(886	)		-		$	(886	)
Balance as of March 31, 2023		100	$	-		40	$	-		267	$	-		-	$	-		3,178,738	$	19	$	33,543	$	(56,663	)	$	(2	)	$	(23,093	)

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

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

	2022			2021
	2023			2022
	For the Nine-Months Ended September 30,
	For the Three-Months Ended March 31,
	2022			2021
	2023			2022
Cash Flows Used in Operating Activities:
Net loss	$	(~~1,779~~886	)	$	(~~4,682~~74	)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt discount and fees		1,265			230
Amortization of debt discount		608			175
Accrued interest expense		~~989~~334			~~749~~311
Derivative income (expense)		(1,425	)		3,055
Derivative (income) expense		(717	)		(667	)
(Gain) Loss on debt extinguishment		(307	)		177
Loan inducement fee		347			-
(Gain)/Loss on debt extinguishment		(39	)		(5	)
Changes in operating assets and liabilities:
Prepaid expenses		(312	)		—(10	)
Accounts payable		~~(38~~8	)		308
Accrued expenses		3623			7246
Net Cash Used in Operating Activities		(~~1,262~~310	)		(~~369~~216	)
Cash Flows Provided by Financing Activities:
Proceeds from notes payable and convertible notes, net of original issue discounts		2,200			591
Proceeds from notes payable, net of original issue discounts		500			200
Notes payable and convertible notes issuance costs		(328	)		(72	)
Notes payable issuance costs		(58	)		(20	)
Repurchase of common stock		(2	)		—
Repayment of principal and interest on notes payable		(95	)		-
Repayment of principal and interest on notes payable		(551	)		—
Net Cash Provided by Financing Activities		347			180
Net Cash Provided by Financing Activities		1,319			519
Net increase (decrease) in cash		37			(36	)
Net increase in cash		57			150
Cash – Beginning of Period		32			76
Cash – Beginning of Period		76			1
Cash - End of Period	$	69		$	40
Cash - End of Period	$	133		$	1,514
Supplementary Cash Flow Information:
Cash paid for interest	$	944			—-
Cash paid for taxes		—-			—-
Supplemental disclosure of non-cash investing and financing activities:
Non-cash Investing and Financing Activities:
Conversion of Series E Preferred stock to common stock		5,056			4
Debt discounts for issuance costs, warrants and derivatives	$	265		$	18
Conversion of Series F Preferred stock to common stock		541			—
Issuance of common stock for conversion of convertible notes		-		$	28
Debt discounts for issuance costs, warrants and derivatives		10
Accrued and deemed dividends	$	26		$	364
Issuance of common stock for conversion of convertible notes		28			111
Issuance of common stock and warrants with convertible notes		20			473
Cashless exercise of warrants		—			4
Accrued and deemed dividends		574			1,679

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

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

~~NOTES~~CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~For~~FOR ~~the~~THE ~~Three~~THREE ~~and~~MONTHS ~~Nine~~ENDED ~~Months~~MARCH ~~Ended~~31, ~~September~~2023 ~~30,~~and 2022

(~~Unaudited~~unaudited)

Note 1 – Organization and Business Operations

Adhera Therapeutics, Inc. and its wholly-owned subsidiaries, MDRNA Research, Inc. (“MDRNA”), Cequent Pharmaceuticals, Inc. (“Cequent”), Atossa Healthcare, Inc. (“Atossa”), and IThenaPharma, Inc. (“IThena”) (collectively “Adhera,” orwe or the “Company”), is an emerging specialty biotech company that, to the extent that resources and opportunities become available, is focused on drug development and commercialization of “small molecule” drugs to treat Parkinson’s disease (PD) and Type 1 diabetes.

On July 28, 2021, we as licensee and Melior Pharmaceuticals II, LLC (“Melior II”) entered into an exclusive license agreement for the development, commercialization and exclusive license of MLR-1019. MLR-1019 is being developed as a new class of therapeutic and is, to the best of our knowledge, the only drug candidate today to address both movement and non-movement aspects of PD. Under the Agreement, we were granted an exclusive license to use the Melior II Patents and know-how to develop products in consideration for cash payments upon meeting certain performance milestones as well as a royalty of 5% of gross sales.

On August 20, 2021, we as licensee, entered into an exclusive license agreement regarding the development and commercialization of Melior’s MLR-1023 (the “MLR-1023 Agreement”) with Melior Pharmaceuticals I, Inc. (“~~Melior I~~MP1”). We refer to MP2 and MP1 as “MP” or “Melior”. This second license is for the development, ~~commercialization~~ and ~~exclusive~~commercialization ~~license~~ of MLR-1023., ~~MLR-1023~~which is being developed as a novel therapeutic for Type 1 diabetes.

Under the original terms of the MLR-1023 Agreement, if the Company failed to raise $4.0 million within 120 days of the effective date of the agreement, then the MLR-1023 Agreement would immediately terminate unless, by 120 days Adhera was in the process of completing transactions to complete the fundraising then an additional 30 days would be provided to allow for the completion of the raise (the “Raise Requirement”).

On October 20, 2021, we as licensee expanded the exclusive licensing agreement with Melior I to include two additional clinical indications for Non-Alcoholic Steatohepatitis (NASH) and pulmonary inflammation.

ToOn ~~the~~November ~~extent~~17, ~~that~~2021, ~~resources~~Melior ~~have~~I ~~been~~extended ~~available,~~ the Company’s ~~has~~timeline ~~continued~~from to120 ~~work~~days ~~with its advisors in an effort~~ to ~~restructure~~180 ~~our~~days ~~company and~~from ~~to identify additional strategic transactions to enhance~~ the ~~value~~effective of ~~our~~the ~~company~~MLR-1023 ~~as such opportunities arise, including potential~~Agreement ~~transactions~~for ~~and~~the ~~capital~~Raise ~~raising initiatives~~Requirement, asby ~~well~~180 asdays ~~business~~Adhera ~~combination~~is ~~transactions~~in ~~with operating companies. There can be no assurance that~~ the ~~Company~~process ~~will~~of becompleting ~~successful at identifying any such~~ transactions, ~~that~~to itcomplete ~~will~~the ~~continue~~fundraising tothen ~~have~~an ~~sufficient resources~~additional to30 ~~actively~~days ~~attempt~~shall ~~to identify such transactions, or that such transactions will~~ be ~~available~~provided ~~upon terms acceptable~~ to usallow orfor ~~at all. If~~ the ~~Company~~completion ~~does~~of ~~not~~required complete any significant strategic transactions, or raise substantial additional capital, in the near future, it is likely that the Company will discontinue all operations and seek bankruptcy protectionfundraising.

On February 16, 2022, an addendum to the MLR-1023 Agreement dated August 4, 2021 (the “First Addendum”), was executed by the Company and Melior, which extended the Raise Requirement to June 16, 2022.

On July 20, 2022, the Company and Melior entered into the Second Addendum to the License Agreement (the “Second Addendum”). In accordance with the Second Addendum and subject to the terms and conditions therein, the Raise Requirement was extended to February 1, 2023, in exchange for a $136,921 licensing payment that was made by the Company on July 28, 2022. In addition, the Company was required to hire and retain a Chief Scientific Officer, and raise an additional $500,000 in capital in addition to other requirements set forth in the Second Addendum and MLR-1023 Agreement.

As of February 1, 2023, the Company had not raised the additional $500,000 of capital, commenced API manufacturing, nor completed the Raise Requirement. In March 2023, the Company obtained a verbal agreement with Melior to extend the terms of the MLR-1023 Agreement until such time that the milestones have been met and the Company pays outstanding patent maintenance costs. However, Melior may terminate the license of MLR-1023 at any time due to non-performance of continuing license obligations with a 60-day required notice to cure non-performance.

As of March 31, 2023, no performance milestones requiring cash consideration had been met under the MLR-1023 Agreement.

To the extent that resources have been available, the Company has continued to work with its advisors in an effort to restructure our company and to identify potential strategic transactions to enhance the value of our company as such opportunities arise, including potential transactions and capital raising initiatives involving the assets relating to our legacy RNA interference programs, as well as business combination transactions with operating companies. There can be no assurance that the Company will be successful at identifying any such transactions, that it will continue to have sufficient resources to actively attempt to identify such transactions, or that such transactions will be available upon terms acceptable to us or at all. If the Company does not complete any significant strategic transactions, or raise substantial additional capital, in the immediate future, it is likely that the Company will discontinue all operations and seek bankruptcy protection.

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~For the~~FOR ~~Three~~THE ~~and~~THREE ~~Nine~~MONTHS ~~Months~~ENDED ~~Ended~~MARCH ~~September 30~~31, 2023 and 2022

(~~Unaudited~~unaudited)

Note 2 – Summary of Significant Accounting Policies

Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and in accordance with the instructions pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and note disclosures required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. This quarterly report should be read in conjunction with the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2021~~2022. The information furnished in this Report reflects all adjustments (consisting of normal recurring adjustments), which are, in the opinion of management, necessary for a fair presentation of our financial position, results of operations and cash flows for each period presented. The results of operations for the ~~nine~~three months ended ~~September~~March 3031, ~~2022~~2023, are not necessarily indicative of the results for the year ending December 31, ~~2022~~2023, or for any future period.

Principles of Consolidation

The consolidated financial statements include the accounts of Adhera Therapeutics, Inc. and the wholly-owned subsidiaries, Ithena, Cequent, MDRNA, and Atossa, and eliminate any inter-company balances and transactions. All wholly-owned subsidiaries of Adhera Therapeutics, Inc. are inactive.

Going Concern and Management’s Liquidity Plans

The accompanying consolidated financial statements have been prepared on the basis that the Company will continue as a going concern, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business. As of ~~September~~March 3031, ~~2022~~2023, the ~~Company~~ Company had ~~cash and cash equivalents of~~ approximately $~~133~~69,000 of cash and has negative working capital of approximately $2123.81 million.

The Company has no revenues and has incurred recurring losses and negative cash flows from operations since inception and has funded its operating losses through the sale of common stock, preferred stock, warrants to purchase common stock, convertible notes and secured promissory notes. The Company ~~recognized~~ incurred a net loss and net cash used in operating activities of approximately $~~1.8~~886,000 ~~million~~and $310,000, respectively for the ~~nine~~three months ended ~~September~~March 3031, ~~2022~~2023. ~~and~~The ~~used~~Company ~~cash~~had ina ~~operating~~working ~~activities~~capital deficit of approximately $123.31 million., ~~The~~a ~~Company~~stockholders’ deficit ~~had~~of approximately $23.1 million and an accumulated deficit of approximately $5556.47 million as of ~~September~~March 3031, ~~2022~~2023.

In addition, to the extent that the Company continues its business operations, the Company anticipates that it will continue to have ~~negative~~ negative cash flows from operations, at least into the near future. However, the Company cannot be certain that it will be able to obtain such funds required for ~~its~~ our operations at terms acceptable to the Company or at all. General market conditions, as well as market conditions for companies in the Company’s financial and business position, as well as the ongoing ~~issues~~issue arising from the COVID-19 pandemic, the ~~Ukraine~~ war ~~and inflation and the Federal Reserve interest rate increases~~ in ~~response~~Ukraine, ~~and~~federal ~~any recessionary~~bank ~~environment~~failures or ~~market~~other ~~downturns~~world-wide ~~that could result~~events, may make it difficult for the Company to seek financing from the capital markets, and the terms of any financing may adversely affect the holdings or the rights of its stockholders. If the Company is is unable to obtain additional financing in the future, there may be a negative impact on the financial viability of the Company. The Company plans to increase working capital by managing its cash flows and expenses, divesting development assets and raising additional capital through private or public equity or debt financing. There can be no assurance that such financing or partnerships will be available on terms which are favorable to the Company or at all. While management of the Company believes that it has a plan to fund ongoing operations, there is no assurance that its plan will be successfully implemented. Failure to raise additional capital through one or more financings, divesting development assets or reducing discretionary spending could have a material adverse effect on the Company’s ability to achieve its intended business objectives. These factors raise substantial doubt about the Company’s ability to continue as a going concern for a period of twelve months from the issuance date of this Report. The consolidated financial statements do not contain any adjustments that might result from the resolution of any of the above uncertainties.

Reverse Stock-split

On September 30, 2022, the Company filed a Certificate of Amendment to the Certificate of Incorporation with the Delaware Secretary of State to effect a reverse stock split of all outstanding shares of the Company’s common stock at a ratio of 1-for-20. On October 5, 2022, the Company effected the 1-for-20 reverse stock split of its common stock. The reverse stock split did not cause an adjustment to the par value or the authorized shares of the common stock. As a result of the reverse stock split, the Company retroactively adjusted all outstanding common stock equivalents including options, warrants, convertible notes and other agreements with third parties.

All disclosures of common shares and per common share data in the accompanying consolidated financial statements and related notes reflect the reverse stock split for all periods presented. As a result of the reverse split the Company recorded a $361,000 adjustment to the par value of common stock which was offset to additional paid-in capital.

Summary of Significant Accounting Policies

Cash and Cash Equivalents

The Company considers all highly liquid investments with maturities of six months or less at the time of purchase to be cash equivalents. As of December 31, 2021 and September 30, 2022, the Company had approximately $76,000 and $133,000 in cash, respectively.

The Company deposits its cash with major financial institutions that may at times exceed the federally insured limit. As of December 31, 2021 and September 30, 2022, the Company did not have cash in excess of the federally insured limit of $250,000.

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~For the~~FOR ~~Three~~THE ~~and~~THREE ~~Nine~~MONTHS ~~Months~~ENDED ~~Ended~~MARCH ~~September 30~~31, 2023 and 2022

(~~Unaudited~~unaudited)

Reverse Stock-split

All disclosures of common shares and per common share data in the accompanying consolidated financial statements and related notes reflect the reverse stock split for all periods presented.

Cash and Cash Equivalents

The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. As of March 31, 2023, the Company had approximately $69,000 in cash.

The Company deposits its cash with a major financial institution that may at times exceed the federally insured limit. As of March 31, 2023, the Company’s cash balance did not exceed the federal deposit insurance limit.

Use of Estimates

The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported period. Significant areas requiring the use of management estimates include accruals related to our operating activity including legal and other consulting expenses, the fair value of non-cash equity-based issuances, the fair value of derivative liabilities, and the valuation allowance on deferred tax assets. Actual results could differ materially from such estimates under different assumptions or circumstances.

Fair Value of Financial Instruments

The Company considers the fair value of cash, accounts payable, debt, and accrued expenses not to be materially different from their carrying value. These financial instruments have short-term maturities. We follow authoritative guidance with respect to fair value reporting issued by the Financial Accounting Standards Board (“FASB”) for financial assets and liabilities, which defines fair value, provides guidance for measuring fair value and requires certain disclosures. The guidance does not apply to measurements related to share-based payments. The guidance discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

Level 1:		Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2:		Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

Level 3:		Unobservable inputs in which little or no market data exists, therefore developed using estimates and assumptions developed by us, which reflect those that a market participant would use.

As of ~~September~~March 3031, ~~2022~~2023, the Company measured conversion features on outstanding convertible notes and warrants as a derivative liability ~~using~~ using significant unobservable prices that are based on little or no verifiable market data, which is Level 3 in the fair value hierarchy, resulting in a fair value estimate of approximately $75.3 9 million. The value of the derivative liability as of ~~September~~March 3031, ~~2022~~2023, was determined by using the binomial lattice model using the following inputs: ~~risk free rate of 4~~3.0536% to 4.2564% risk free rate, volatility of ~~147~~177.51% to ~~317~~315% and time to maturity of ~~zero~~0 to– ~~one~~1.10 ~~year~~years. There were no liabilities or assets measured at fair value on a non-recurring basis as of ~~September 30~~March 31, ~~2022~~2023.

	Fair Value Measurements at September 30, 2022
(in thousands)	(Level 1)		(Level 2)		(Level 3)		Total
	Fair Value Measurements at March 31, 2023
	Quoted Prices in Active Markets for Identical Assets		Other Observable Inputs		Significant Unobservable Inputs
(in thousands)	(Level 1)		(Level 2)		(Level 3)		Total
Derivative liabilities	$	-	$	-	$	7,260	$	7,260
Derivative liability	$	-	$	-	$	5,890	$	5,890
Total	$	-	$	-	$	75,~~260~~890	$	75,~~260~~890

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~For the~~FOR ~~Three~~THE ~~and~~THREE ~~Nine~~MONTHS ~~Months~~ENDED ~~Ended~~MARCH ~~September 30~~31, 2023 and 2022

(~~Unaudited~~unaudited)

A roll forward of the level 3 valuation financial instruments is as follows:

(in thousands)	Warrants			Notes			Total
(In thousands)	Warrants			Notes			Total
	Nine-Months Ended September 30, 2022
	Three Months Ended March 31, 2023
(in thousands)	Warrants			Notes			Total
(In thousands)	Warrants			Notes			Total
Balance at December 31, 2021	$	5,336		$	2,361		$	7,697
Balance at December 31, 2022	$	5,075		$	1,311		$	6,386
Initial valuation of derivative liabilities included in debt discount		~~1,151~~265			~~163~~-			~~1,314~~265
Initial valuation of derivative liabilities included in derivative expense		—422			~~108~~-			~~108~~422
Reclassification of derivative liabilities loss to gain on debt extinguishment		—			(325	)		(325	)
Reclassification of derivative liabilities to gain on debt extinguishment		-			(44	)		(44	)
Change in fair value included in derivative expense		(318	)		(1,216	)		(1,534	)
Change in fair value included in derivative expense (income)		(970	)		(169	)		(1,139	)
Balance at September 30, 2022	$	6,169		$	1,091		$	7,260
Balance at December 31, 2022	$	4,792		$	1,098		$	5,890

ASC 825-10 “Financial Instruments” allows entities to voluntarily choose to measure certain financial assets and liabilities at fair value (fair value option). The fair value option may be elected on an instrument-by-instrument basis and is irrevocable unless a new election date occurs. If the fair value option is elected for an instrument, unrealized gains and losses for that instrument should be reported in earnings at each subsequent reporting date. The Company did not elect to apply the fair value option to any outstanding equity instruments.

Convertible Debt and Warrant Accounting

Debt with warrants

In accordance with ASC Topic 470-20-25, when the Company issues debt with warrants, the Company treats the relative fair value of the ~~warrants~~ warrants as a debt discount, recorded as a contra-liability against the debt, and amortizes the balance over the life of the underlying debt as amortization of debt discount expense in the consolidated statements of operations. The offset to the contra-liability is recorded as additional paid -in capital in the Company’s consolidated balance sheets if the warrants are not treated as a derivative. The Company determines the fair value of the warrants using the Black-Scholes Option Pricing Model (“Black-Scholes”), the binomial model or the Monte Carlo Method based upon the underlying conversion features of the debt and then computes and records the relative fair value as a debt discount. If the warrant is treated as a derivative liability, the derivative liability is recorded at fair value and the difference between the derivative liability and debt discount is recorded as an initial derivative expense. If the debt is retired early, the associated debt discount is then recognized immediately as amortization of debt discount expense in the consolidated statements of operations.

Convertible debt – derivative treatment

When the Company issues debt with a conversion feature, it first assesses whether the conversion feature meets the requirements to be accounted for as stock settled debt. If it does not meet those requirements then it is assessed on whether the conversion feature should be bifurcated and treated as a derivative liability, as follows: a) one or more underlyings, typically the price of our common stock; b) one or more notional amounts or payment provisions or both, generally the number of shares upon conversion; c) no initial net investment, which typically excludes the amount borrowed; and d) net settlement provisions, which in the case of convertible debt generally means the stock received upon conversion can be readily sold for cash. An embedded equity-linked component that meets the definition of a derivative does not have to be separated from the host instrument if the component qualifies for the scope exception for certain contracts involving an issuer’s own equity. The scope exception applies if the contract is both a) indexed to its own stock; and b) classified in stockholders’ equity in its statement of financial position.

Convertible debt – beneficial conversion feature

Prior to the Company’s adoption of ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”) on January 1, 2021, if the conversion feature was not treated as a derivative, the Company assessed whether it is a beneficial conversion feature (“BCF”). A BCF exists if the effective conversion price of the convertible debt instrument is less than the stock price on the commitment date. This typically occurs when the conversion price is less than the fair value of the stock on the date the instrument was issued. The value of a BCF is equal to the intrinsic value of the feature, the difference between the conversion price and the common stock into which it is convertible and is recorded as additional paid in capital and as a debt discount in the consolidated balance sheets. The Company amortizes the balance over the life of the underlying debt as amortization of debt discount expense in the consolidated statements of operations. If the debt is retired early, the associated debt discount is then recognized immediately as amortization of debt discount expense in the consolidated statements of operations.

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~For the~~FOR ~~Three~~THE ~~and~~THREE ~~Nine~~MONTHS ~~Months~~ENDED ~~Ended~~MARCH ~~September 30~~31, 2023 and 2022

(~~Unaudited~~unaudited)

If the conversion feature does not qualify for derivative treatment, the convertible debt is treated as traditional debt.

Recently Issued Accounting Pronouncements

Recently Adopted

In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which will simplify the accounting for certain financial instruments with characteristics of liabilities and equity, including certain convertible instruments and contracts on an entity’s own equity. Specifically, the new standard will remove the separation models required for convertible debt with cash conversion features and convertible instruments with beneficial conversion features. It will also remove certain settlement conditions that are currently required for equity contracts to qualify for the derivative scope exception and will simplify the diluted earnings per share calculation for convertible instruments. ASU 2020-06 will be effective January 1, 2022, for the Company and may be applied using a full or modified retrospective approach. Early adoption is permitted, but no earlier than January 1, 2021, for the Company. The Company adopted ASU No. 2020-06 on January 1, 2021. Management determined such adoption did not have a material impact on the overall stockholders’ equity (deficit) in the Company’s consolidated financial statements.

In May 2021, FASB issued ASU 2021-04: Earnings Per Share (Topic 260), Debt— Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40), to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (for example, warrants) that remain equity classified after modification or exchange. The amendments in ASU 2021-04 provide the following guidance for a modification or an exchange of a freestanding equity-classified written call option that is not within the scope of another Topic:

1.	An entity should treat a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange as an exchange of the original instrument for a new instrument.
2.	An entity should measure the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange as follows:

1.	An entity should treat a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange as an exchange of the original instrument for a new instrument.

a. For a modification or an exchange that is a part of or directly related to a modification or an exchange of an existing debt instrument or line-of-credit or revolving-debt arrangements (hereinafter, referred to as a “debt” or “debt instrument”), as the difference between the fair value of the modified or exchanged written call option and the fair value of that written call option immediately before it is modified or exchanged. Specifically, an entity should consider:

2.	An entity should measure the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange as follows:

	a.	For a modification or an exchange that is a part of or directly related to a modification or an exchange of an existing debt instrument or line-of-credit or revolving-debt arrangements (hereinafter, referred to as a “debt” or “debt instrument”), as the difference between the fair value of the modified or exchanged written call option and the fair value of that written call option immediately before it is modified or exchanged. Specifically, an entity should consider:

		i.	An increase or a decrease in the fair value of the modified or exchanged written call option in applying the 10 percent cash flow test and/or calculating the fees between debtor and creditor in accordance with Subtopic 470-50, Debt—Modifications and Extinguishments.

		ii.	An increase (but not a decrease) in the fair value of the modified or exchanged written call option in calculating the third-party costs in accordance with Subtopic 470-50.

	b.	For all other modifications or exchanges, as the excess, if any, of the fair value of the modified or exchanged written call option over the fair value of that written call option immediately before it is modified or exchanged.

i. An increase or a decrease in the fair value of the modified or exchanged written call option in applying the 10 percent cash flow test and/or calculating the fees between debtor and creditor in accordance with Subtopic 470-50, Debt—Modifications and Extinguishments.

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~For the~~FOR ~~Three~~THE ~~and~~THREE ~~Nine~~MONTHS ~~Months~~ENDED ~~Ended~~MARCH ~~September 30~~31, 2023 and 2022

(~~Unaudited~~unaudited)

ii. An increase (but not a decrease) in the fair value of the modified or exchanged written call option in calculating the third-party costs in accordance with Subtopic 470-50.

3.	An entity should recognize the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange on the basis of the substance of the transaction, in the same manner as if cash had been paid as consideration, as follows:

	a.	A financing transaction to raise equity. The effect should be recognized as an equity issuance cost in accordance with the guidance in Topic 340, Other Assets and Deferred Costs.

	b.	A financing transaction to raise or modify debt. The effect should be recognized as a cost in accordance with the guidance in Topic 470, Debt, and Topic 835, Interest.

	c.	Other modifications or exchanges that are not related to financings or compensation for goods or services or other exchange transactions within the scope of another Topic. The effect should be recognized as a dividend. For entities that present EPS in accordance with Topic 260, that dividend should be an adjustment to net income (or net loss) in the basic EPS calculation.

b. For all other modifications or exchanges, as the excess, if any, of the fair value of the modified or exchanged written call option over the fair value of that written call option immediately before it is modified or exchanged.

3. An entity should recognize the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange on the basis of the substance of the transaction, in the same manner as if cash had been paid as consideration, as follows:

a. A financing transaction to raise equity. The effect should be recognized as an equity issuance cost in accordance with the guidance in Topic 340, Other Assets and Deferred Costs. b. A financing transaction to raise or modify debt. The effect should be recognized as a cost in accordance with the guidance in Topic 470, Debt, and Topic 835, Interest. c. Other modifications or exchanges that are not related to financings or compensation for goods or services or other exchange transactions within the scope of another Topic. The effect should be recognized as a dividend. For entities that present EPS in accordance with Topic 260, that dividend should be an adjustment to net income (or net loss) in the basic EPS calculation.

An entity should recognize the effect of a modification or an exchange of a freestanding equity-classified written call option to compensate for goods or services in accordance with the guidance in Topic 718, Compensation—Stock Compensation. In a multiple-element transaction (for example, one that includes both debt financing and equity financing), the total effect of the modification should be allocated to the respective elements in the transaction.

The amendments in ASU 2021-04 are effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. An entity should apply the amendments prospectively to modifications or exchanges occurring on or after the effective date of the amendments. Early adoption is permitted for all entities, including adoption in an interim period. If an entity elects to early adopt the amendments in ASU 2021-04 in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes that interim period. The ~~adoption~~Company byadopted ~~the~~ASU ~~Company~~No. as2021-04 ofon January 1, 2022,. ~~did~~Management determined such adoption did not have a ~~significant~~material impact on ~~its~~the overall stockholders’ equity (deficit) in the Company’s consolidated financial statements.

Not Yet Adopted

Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures.

Net Loss per Common Share

Basic net loss per share is calculated by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares and common stock equivalents outstanding for the period. Common stock equivalents are only included when their effect is dilutive. Potentially dilutive securities which include outstanding warrants, stock options, convertible notes and preferred stock have been excluded from the computation of diluted net loss per share as their effect would be anti-dilutive. For all periods presented, basic and diluted net loss were the same.

The following table presents the computation of net loss per share (in thousands, except share and per share data):

(in thousands except share and per share data)	2023			2022
	March 31,
(in thousands except share and per share data)	2023			2022
Numerator
Net loss	$	(886	)	$	(74	)
Preferred stock dividends		(26	)		(364	)
Net Loss allocable to common stockholders	$	(912	)	$	(438	)
Denominator
Weighted average common shares outstanding used to compute net loss per share, basic and diluted		3,176,952			858,959
Net loss per share of common stock, basic and diluted
Net loss per share, basic and diluted	$	(0.29	)	$	(0.51	)

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~For the~~FOR ~~Three~~THE ~~and~~THREE ~~Nine~~MONTHS ~~Months~~ENDED ~~Ended~~MARCH ~~September 30~~31, 2023 and 2022

(~~Unaudited~~unaudited)

The following table presents the computation of net loss per share (in thousands), except share and per share data):

Schedule of Earnings Per Share, Basic and Diluted

	2022			2021			2022			2021
	Three Months Ended						Nine Months Ended
	2022			2021			2022			2021
Numerator
Net loss	$	(1,804	)	$	(3,739	)	$	(1,779	)	$	(4,682	)
Dividends		(8	)		(406	)		(574	)		(1,679	)
Net Loss allocable to common stockholders	$	(1,812	)	$	(4,145	)	$	(2,353	)	$	(6,361	)
Denominator
Weighted average common shares outstanding used to compute net loss per share, basic and diluted		3,160,877			649,321			2,019,953			587,117
Net loss per share of common stock, basic and diluted
Net loss per share	$	(0.57	)	$	(6.38	)	$	(1.16	)	$	(10.83	)

The following number of shares have been excluded from diluted net (loss) since such inclusion would be anti-dilutive:

	2022		2021
	2023		2022
	Nine-Months Ended September 30,
	March 31,
	2022		2021
	2023		2022
Stock options outstanding		19,000		19,~~378~~000
Convertible notes		25,~~389~~645,~~770~~582		12,~~216~~695,~~640~~061
Warrants		59,~~192~~370,~~652~~490		3,~~065~~965,~~318~~804
Series C Preferred Stock		3,334		3,334
Series D Preferred Stock		2,500		2,500
Series E Preferred Stock		~~178~~185,~~833~~980		2,~~175~~194,~~826~~844
Series F Preferred Stock		—-		~~225~~231,~~995~~360
Total		715,~~786~~226,~~089~~886		69,~~708~~111,~~991~~903

Stock-Based Compensation

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

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

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the Three and Nine Months Ended September 30, 2022

(Unaudited)

Income Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets, including tax loss and credit carry forwards, and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

The Company accounts for income taxes using the asset and liability method to compute the differences between the tax basis of assets and liabilities and the related financial amounts, using currently enacted tax rates.

Note 3 – Prepaid Expenses

As of ~~September~~March 3031, ~~2022~~2023, and December 31, ~~2021~~2022, prepaid expenses ~~were~~totaled approximately $~~123~~35,000 and $~~120~~47,000, respectively, and included prepaid insurance ~~manufacturing expenses for the Company’s clinical development candidate MLR-1019~~ and other prepaid ~~expenses~~operating ~~recorded on the accompanying balance sheet~~expenses.

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2023 and 2022

(unaudited)

Note 4 – Notes Payable and Convertible Promissory Notes

The following table summarizes the Company’s outstanding term loans:

(in thousands)	~~September~~March 3031, ~~2022~~2023			December 3031, ~~2021~~2022
2019 Term Loan	$	5,677		$	5,677
2022 Term Loan		2,222			-
2022 Term Loans		2,712			2,365
Notes payable		7,899			5,677
2023 Term Loans		768			-
Unamortized discounts		(1,029	)		-
Notes payable		9,157			8,042
Loans payable	$	6,870		$	5,677
Unamortized discounts and fees		(759	)		(709	)
Loans payable	$	8,398		$	7,333

~~2019~~As of March 31, 2023, the 2019 Term Loan was in default. On May 11, 2023, the Company defaulted on the 2022 Term Loans. (see note 11).

~~During~~ 2019~~, the Company entered into term loan subscription agreements with certain accredited investors, pursuant to which the Company issued~~ ~~secured promissory notes in the aggregate principal amount of approximately $5.7 million (collectively, the “2019~~ Term ~~Loans”). The Company paid $707,000 in debt issuance costs which was recorded as a debt discount to be amortized as interest expense over the term of the loan using the straight-line method.~~Loan

~~The~~During ~~promissory~~2019, ~~notes~~the ~~accrued~~Company ~~interest~~entered atinto aterm ~~rate~~loan ofsubscription ~~12%~~agreements ~~per~~with ~~annum.~~certain ~~Interest~~accredited isinvestors, ~~payable~~pursuant ~~quarterly~~to ~~with~~which the ~~first~~Company ~~interest payment to be made~~issued onsecured ~~December~~promissory ~~28,~~notes ~~2019,~~in ~~and~~the ~~each~~aggregate ~~subsequent~~principal ~~payment~~amount ~~every~~of ~~Nine~~approximately ~~months~~$5.7 ~~thereafter~~million. OnThe ~~December~~Company ~~28,~~paid ~~2019~~$707,000 ~~the~~in ~~Company~~debt ~~defaulted~~issuance costs onwhich ~~the~~was ~~initial interest~~recorded ~~payment~~as ona ~~the~~debt ~~loan~~discount ~~and~~to ~~the~~be amortized as interest ~~rate~~expense ~~per~~over ~~annum~~the ~~increased~~term toof the ~~default~~loan ~~rate~~using ofthe ~~15%~~straight-line method.

The ~~unpaid~~promissory ~~principal balance of the~~ notes, ~~plus~~ accrued ~~and unpaid~~ interest ~~thereon,~~at ~~matured~~a onrate ~~June~~of ~~28,~~12% ~~2020~~per annum. ~~The~~Interest ~~notes~~is ~~were~~payable ~~secured~~quarterly ~~by a~~with the first ~~lien~~interest ~~and~~payment ~~security~~to ~~interest~~be made on ~~all~~December ~~the~~28, ~~assets~~2019, ~~of the Company~~ and ~~certain~~each ofsubsequent ~~its~~payment ~~wholly~~every ~~owned~~three ~~subsidiaries~~months thereafter. On ~~June~~December 28, ~~2020~~2019, the Company defaulted on the ~~maturity~~initial interest ~~date~~payment ~~principal~~on ~~payment~~the loan and the interest rate per annum increased to the default rate of 15%.

The unpaid principal balance of the notes, plus accrued and unpaid interest thereon, matured on June 28, 2020. The notes are secured by a first lien and security interest on all the assets of the Company and certain of its wholly owned subsidiaries. On June 28, 2020, the Company defaulted on the maturity date principal payment.

On June 26, 2021, the holders of the 2019 Term Loans agreed to subordinate their lien and security interest in the assets of the Company and its subsidiaries as set forth in the Security Agreement dated June 28, 2019, to the holders of the June 2021 convertible notes.

On April 19, 2022, a majority of the noteholders of the secured non-convertible promissory notes of the Company issued between June 18, 2019, and August 5, 2019, which matured on August 5, 2020, consented to forbear collection efforts until September 30, 2022. Accordingly, the collateral agent for the ~~note~~noteholders ~~holders~~ in consideration of the signed noteholder agreements agreed to forbear all notes outstanding.

On November 16, 2022, holders of outstanding promissory notes representing a majority of the outstanding principal and accrued interest of the Notes, agreed to amend the Notes to make them automatically convertible into units consisting of a new series of convertible preferred stock and warrants upon an up listing financing transaction in which the Company’s common stock is listed on The Nasdaq Capital Market or the NYSE American, in exchange for the Holders agreeing to forbear repayment of their Notes and accrued interest until the Up listing Transaction has been completed.

The terms for the amendment of the Notes include no less than the following:

	●	The Notes will automatically convert upon the Uplisting Transaction into the Preferred Stock at 90% of the public offering price;
	●	In addition, each Holder will receive 0.3 Warrants for every $1.00 of principal on the Holder’s original Note;
	●	The shares of Preferred Stock will be subject to a six-month lock-up period from date of issuance; and
	●	The Company has agreed to register the Holders’ sale of the shares of common stock issuable upon conversion of the Preferred Stock and upon the exercise of the Warrants such that those shares will be freely tradeable following the up-list transaction and expiration of the lock-up period.

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~For the~~FOR ~~Three~~THE ~~and~~THREE ~~Nine~~MONTHS ~~Months~~ENDED ~~Ended~~MARCH ~~September 30~~31, 2023 and 2022

(~~Unaudited~~unaudited)

The ~~Company~~shares ~~recognized~~of ~~approximately~~the ~~$212,000~~Preferred ~~and~~Stock ~~$637,000~~will inbe ~~interest~~entitled ~~expense~~to ~~related~~vote on an as-converted-to-common ~~the~~basis ~~Notes~~together ~~for~~with the ~~three~~Company’s ~~and~~common ~~nine~~stock. The ~~months~~shares ~~ended~~of ~~September 30,~~the ~~2022,~~Preferred ~~respectively.~~Stock ~~The~~will ~~Company~~automatically ~~recognized~~convert ~~approximately~~into ~~$215,000~~shares ~~and~~of ~~$637,000~~common instock ~~interest~~upon ~~expense~~expiration ~~related~~of to the ~~Notes~~lock-up ~~for~~period at the conversion ~~three~~price ~~and~~of ~~nine months~~a ~~ended~~percentage ~~September~~of a 30,-day ~~2021,~~VWAP ~~respectively~~of common stock.

AsThe ~~of September 30, 2022, the Company had approximately $2.7 million of accrued~~ interest on the ~~notes~~Notes, ~~included~~as in accrued ~~expenses~~through ~~and is in default on~~ the ~~repayment~~date of ~~approximately~~conversion, ~~$5.7~~will ~~million~~convert ininto ~~principal~~common ~~and~~stock at the ~~$2.7~~offering ~~million~~price infor ~~accrued interest on~~ the ~~2019 Term Loans~~up-list transaction.

~~2022~~The Company recognized approximately $210,000 in interest expense related to the 2019 Term Loan for both of the three months ended March 31, 2023, and 2022. As of March 31, 2023, the debt discount and issuance costs for the term loan were fully amortized.

As of March 31, 2023, the Company had approximately $3.1 million of accrued interest on the notes included in accrued expenses and remains in default on the repayment of approximately $5.7 million in principal and $3.1 million in accrued interest on the 2019 Term Loan.

2022 Term Loan – May

On May 11, 2022, the Company entered into a Securities Purchase Agreement with investors whereby the Company issued the Purchasers Original Issue Discount Promissory Notes in the aggregate principal amount of $2,222,222, net of an original issue discount of $222,222 for a purchase price of $2,000,000 and warrants to purchase 1,111,112 shares of the Company’s common stock, pursuant to the terms and conditions of the SPA and secured by a Security Agreement as described below. In addition, the Company issued 19,231 commons shares to an investment banker as commission on the sale. The Company received total consideration of $1,692,200 after debt issuance costs of $307,800.

The Notes are due on the earliest to occur of (i) the 12-month anniversary of the original issuance date of the Notes, or May 11, 2023, (ii) a financing transaction which results in the Company’s common stock being listed on a national securities exchange, and (iii) an event of default. If an event of default occurs before the Company’s common stock is listed on a national securities exchange, the event of default would require a repayment of 125% of the outstanding principal, accrued interest and other amounts owing thereon unless the Company is trading on a national securities exchange in which case the repayment would be 100%. The Notes bear interest at 8% per annum, subject to an increase to 15% in case of an event of default as provided for therein. In addition, at any time before the 12-month anniversary of the date of issuance of the Notes, the Company may, upon five days’ prior written notice to the Purchaser, prepay all of the then outstanding principal amount of the Notes for cash in an amount equal to the sum of 105% of all amounts due and owing hereunder, including all accrued and unpaid interest.

The Warrants are exercisable for a 66 -month period (five years and six months) ending November 11, 2027, at an exercise price of $0.80 per share, subject to certain adjustments.

The Company recorded a total debt discount of $1,693,000 including an original issue discount of $222,222, a discount related to issuance costs of $307,800, a discount related to the issuance of common stock of $11,820, and a $1,151,~~000~~137 discount related to the initial warrant derivative liability. The discounts are being amortized over the life of the note.

The Company’s obligations under the Notes are secured by a first priority lien on all of the assets of the Company and its wholly-owned subsidiaries pursuant to a Security Agreement, dated May 11, 2022 and among the Company, its wholly-owned subsidiaries, the Purchasers, and the lead investor as the collateral agent.

~~For~~On ~~the~~January ~~three and nine months ended September 30~~10, ~~2022~~2023, the ~~Company~~conversion ~~recognized~~price ~~approximately~~of ~~$562,300 and $663,300 related to~~ the ~~amortization~~warrants ofwas ~~debt~~adjusted ~~discounts~~to ~~and fees and approximately~~ $~~45,400 and $70,600 in interest expense, respectively~~0.56 ~~No interest~~as ~~expense~~a orresult ~~debt~~of ~~discount~~issuing ~~was~~common ~~recognized~~stock for ~~the~~a ~~same~~convertible ~~period of 2021~~note conversion.

AsDuring ofthe ~~September~~three 30months ended March 31, ~~2022~~2023, the Company ~~has~~increased ~~recorded~~the ~~$2,222,222 of~~ outstanding principal, ~~$70,600~~amount of ~~accrued~~the ~~interest~~notes ~~and~~by ~~approximately~~ $1347,~~029,000~~222 as an incentive ofto ~~unamortized~~invest ~~discount~~in the 2023 Bridge Loans and ~~issuance~~recorded ~~expenses~~a corresponding expense to loan inducement fees on the ~~2022~~accompanying ~~Term~~consolidated ~~Loans~~statement of operations.

Convertible Promissory Notes

The following table summarizes the Company’s outstanding convertible notes as of September 30, 2022, and December 31, 2021:

Schedule of Convertible Promissory Notes

(in thousands)	September 30, 2022			December 31, 2021
Convertible Notes	$	1,300		$	1,516
Unamortized discounts and fees		(178	)		(530	)
Convertible notes payable, net	$	1,122		$	986

Ten convertible notes with outstanding principal of approximately $1.1 million were in default as of September 30, 2022.

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~For the~~FOR ~~Three~~THE ~~and~~THREE ~~Nine~~MONTHS ~~Months~~ENDED ~~Ended~~MARCH ~~September 30~~31, 2023 and 2022

(~~Unaudited~~unaudited)

For the three months ended March 31, 2023, the Company recognized approximately $417,500 of expense related to the amortization of debt discounts and fees and approximately $44,400 in interest expense, respectively. No interest expense or debt discount was recognized for the same period of 2022.

As of March 31, 2023, the Company has recorded $2,569,444 of outstanding principal, $165,670 of accrued interest in accrued expenses on the accompanying consolidated balance sheet and approximately $185,500 of unamortized discount and issuance expenses on the 2022 Term Loans.

2022 Term Loan – December

On December 14, 2022, the Company entered into a Securities Purchase Agreement with an accredited investor pursuant to which the Company issued and sold the investor a non-convertible Original Issue Discount Senior Secured Promissory Note in the principal amount of $142,857 and 158,537 Common Stock Purchase Warrants (“Warrants”) for total purchase price of $100,000. The Company received total consideration of $82,400 after debt issuance costs of $17,600 and an original issue discount of $42,857.

The unpaid principal amount of this Note, together with any interest accrued but unpaid thereon, may, at the sole discretion of the Company, be converted into shares of a new class of convertible preferred stock of the Company on the closing date on which the Company completes a public offering for cash of common stock and/or common stock equivalents which results in the listing of the Company’s common stock on a “national securities exchange” as defined in the Securities Exchange Act of 1934 (a “Qualified Financing”).

The Warrants are exercisable for a 66-month period (five years and six months) ending June 15, 2028, at an exercise price of $0.82 per share, subject to certain adjustments.

The Company recorded a total debt discount of $111,523 including an original issue discount of $42,857, a discount related to issuance costs of $17,600, and a $51,066 discount related to the initial warrant derivative liability. The discounts are being amortized over the life of the note.

On January 10, 2023, the conversion price of the warrants was adjusted to $0.56 as a result of issuing common stock for a convertible note conversion.

For the three months ended March 31, 2023, the Company recognized approximately $27,500 related to the amortization of debt discounts and fees and approximately $2,800 in interest expense, respectively. No interest expense or debt discount was recognized for the same period of 2022.

As of March 31, 2023, the Company has recorded $142,857 of outstanding principal, $3,400 of accrued interest in accrued expenses on the accompanying consolidated balance sheet and approximately $78,500 of unamortized discount and issuance expenses on the 2022 December Term Loan.

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2023 and 2022

(unaudited)

2023 Term Loans

January 18, 2023

On January 18, 2023, the Company entered into a Securities Purchase Agreement with two accredited investors pursuant to which the Company issued and sold the investors a non-convertible Original Issue 30% Discount Senior Secured Promissory Note in the principal amount of $285,714 and 452,962 Common Stock Purchase Warrants for total purchase price of $200,000. The Company received total consideration of $173,850 after debt issuance costs of $26,150.

The Company also agreed to increase the principal amount of prior Original Issue Discount Promissory Notes issued to the investor in May 2022 by 25%. The principal increase in the May 2022 note totaled $277,777. The Company recorded $277,777 as a loan inducement fee related to the notes.

The Notes are due on the earliest to occur of (i) the 12-month anniversary of the original issuance date of the Notes, or January 18, 2024, (ii) a financing transaction which results in the Company’s common stock being listed on a national securities exchange, and (iii) an event of default. If an event of default occurs before the Company’s common stock is listed on a national securities exchange, the event of default would require a repayment of 125% of the outstanding principal, accrued interest and other amounts owing thereon unless the Company is trading on a national securities exchange in which case the repayment would be 100%. The Notes bear interest at 8% per annum, subject to an increase to 15% in case of an event of default as provided for therein. In addition, at any time before the 12-month anniversary of the date of issuance of the Notes, the Company may, upon five days’ prior written notice to the Purchaser, prepay all of the then outstanding principal amount of the Notes for cash in an amount equal to the sum of 105% of all amounts due and owing hereunder, including all accrued and unpaid interest.

The Warrants are exercisable for a 66-month period (five years six months) ending July 18, 2028, at an exercise price of $0.82 per share, subject to certain adjustments.

The Company recorded a total debt discount of $203,000 including an original issue discount of approximately $85,700, a discount related to issuance costs of $26,200, and a $91,100 discount related to the initial warrant derivative liability. The discounts are being amortized over the life of the note.

For the three months ended March 31, 2023, the Company recognized approximately $40,600 related to the amortization of debt discounts and fees and approximately $4,600 in interest expense, respectively. No interest expense or debt discount was recognized for the same period of 2022.

As of March 31, 2023, the Company has recorded $285,714 of outstanding principal, $4,600 of accrued interest in accrued expenses on the accompanying consolidated balance sheet and approximately $162,400 of unamortized discount and issuance expenses on the note.

February 3, 2023

On February 3, 2023, the Company entered into a Securities Purchase Agreement with an affiliated accredited investor pursuant to which the Company issued and sold the investor a non-convertible Original Issue 30% Discount Senior Secured Promissory Note in the principal amount of $267,857 and 424,652 Common Stock Purchase Warrants for a total purchase price of $150,000. The Company received total consideration of $133,900 after debt issuance costs of $16,100.

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2023 and 2022

(unaudited)

The Notes are due on the earliest to occur of (i) the 12-month anniversary of the original issuance date of the Notes, or February 3, 2024, (ii) a financing transaction which results in the Company’s common stock being listed on a national securities exchange, and (iii) an event of default. If an event of default occurs before the Company’s common stock is listed on a national securities exchange, the event of default would require a repayment of 125% of the outstanding principal, accrued interest and other amounts owing thereon unless the Company is trading on a national securities exchange in which case the repayment would be 100%. The Notes bear interest at 8% per annum, subject to an increase to 15% in case of an event of default as provided for therein. In addition, at any time before the 12-month anniversary of the date of issuance of the Notes, the Company may, upon five days’ prior written notice to the Purchaser, prepay all of the then outstanding principal amount of the Notes for cash in an amount equal to the sum of 105% of all amounts due and owing hereunder, including all accrued and unpaid interest.

The Warrants are exercisable for a 66-month period (five years and six months) ending August 3, 2028, at an exercise price of $0.82 per share, subject to certain adjustments.

The Company recorded a total debt discount of approximately $224,000 including an original issue discount of approximately $64,300 a discount of approximately $53,600 as a loan inducement fee, a discount related to issuance costs of $16,100, and a $90,000 discount related to the initial warrant derivative liability. The discounts are being amortized over the life of the note.

For the three months ended March 31, 2023, the Company recognized approximately $35,000 related to the amortization of debt discounts and fees and approximately $3,400 in interest expense, respectively. No interest expense or debt discount was recognized for the same period of 2022.

As of March 31, 2023, the Company has recorded $267,857 of outstanding principal, $3,400 of accrued interest in accrued expenses on the accompanying consolidated balance sheet and approximately $189,000 of unamortized discount and issuance expenses on the note.

February 16, 2023

On February 16, 2023, the Company entered into a Securities Purchase Agreement with an affiliated accredited investor pursuant to which the Company issued and sold the investor a non-convertible Original Issue 30% Discount Senior Secured Promissory Note in the principal amount of $214,286 and 339,722 Common Stock Purchase Warrants for a total purchase price of $150,000. The Company received total consideration of $133,850 after debt issuance costs of $16,150.

The Company also agreed to increase the principal amount of prior Original Issue Discount Promissory Notes issued to the investor in May 2022 by 25%. The principal increase in the May 2022 note totaled $69,444. The Company recorded $69,444 as a loan inducement fee related to the notes.

All of the Warrants issued with promissory notes listed above are exercisable for a 66 month period (five years and six months) at an exercise price of $0.82 per share, subject to certain adjustments.

The Notes are due on the earlier of (i) the 12 month anniversary of the issuance date, and (ii) the date on which the Company completes a public offering for cash of common stock and/or common stock equivalents which results in the listing of the Company’s common stock on a “national securities exchange” as defined in the Securities Exchange Act of 1934 (a “Qualified Financing”), provided that unless there is an event of default, the Company may extend the maturity date by six months in its discretion. The Notes bear interest at 8% per annum, payable monthly, subject to an increase to 15% in case of an event of default as provided for therein. Furthermore, at any time before the 12 month anniversary of the date of issuance of a Note, the Company may, after providing written notice to the holder, prepay all of the then outstanding principal amount of the Note for cash in an amount equal to the sum of 105% of the then outstanding principal amount of the Note, accrued but unpaid interest and all liquidated damages and other amounts due in respect of the Note (if any).

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2023 and 2022

(unaudited)

The Notes may, at the discretion of the Company, be converted into shares of a new class of convertible preferred stock of the Company (the “Convertible Preferred Stock”) on the closing date of the Qualified Financing. In the event of the conversion, the holder will receive a number of shares of Convertible Preferred Stock equal to the quotient obtained by dividing (i) the unpaid principal amount of this Note (together with any interest accrued but unpaid thereon) by (ii) the closing price of the securities issued in the Qualified Financing on the closing date of the Qualified Financing. Upon issuance, the conversion price of the Convertible Preferred Stock will be equal to the closing price of the securities issued in the Qualified Financing, subject to adjustment.

The Warrants are exercisable for a 66-month period (five years six months) ending August 16, 2028, at an exercise price of $0.82 per share, subject to certain adjustments.

The Company recorded a total debt discount of $163,600 including an original issue discount of approximately $64,200, a discount related to issuance costs of $16,200, and an $83,200 discount related to the initial warrant derivative liability. The discounts are being amortized over the life of the note.

For the three months ended March 31, 2023, the Company recognized approximately $19,700 related to the amortization of debt discounts and fees and approximately $2,100 in interest expense, respectively. No interest expense or debt discount was recognized for the same period of 2022.

As of March 31, 2023, the Company has recorded $214,286 of outstanding principal, $2,100 of accrued interest in accrued expenses on the accompanying consolidated balance sheet and approximately $144,000 of unamortized discount and issuance expenses on the note.

Convertible Promissory Notes

The following table summarizes the Company’s outstanding convertible notes as of March 31, 2023, and December 31, 2022:

(in thousands)	March 31, 2023		December 31, 2022
Convertible Notes	$	1,228	$	1,319
Unamortized discounts		-		(67	)
Convertible notes payable, net	$	1,228	$	1,252

All convertible notes including accrued interest were in default as of the issuance date of this Report. As of March 31, 2023, accrued interest totaled approximately $482,400 on all outstanding convertible notes.

Secured Convertible Promissory Note – February 2020

On February 5, 2020, the Company entered into a Securities Purchase Agreement with accredited investors and issued the investors, (i) original issue discount Convertible Promissory Notes with a principal of $550,500 issued at a 10% original issue discount, for a total purchase price of $499,950, and (ii) warrants to purchase up to such number of shares of the common stock of the Company as is equal to the product obtained by multiplying 1.75 by the quotient obtained by dividing (A) the principal amount of the Notes by (B) the then applicable conversion price of the Notes. ~~This results in a variable quantity of warrants at any point in time due to the variable conversion price of the Notes. (See Note 7).~~

The Convertible Notes matured on August 5, 2020. Prior to default, interest accrued to the Holders on the aggregate unconverted and then outstanding principal amount of the Notes at the rate of 10% per annum, calculated on the basis of a 360-day year and accrues daily. On June 15, 2020, the Company defaulted on certain covenants in the 2020 term loan and the interest rate reset to the default rate of 18%.

Until the Convertible Notes are no longer outstanding, the Convertible Notes are convertible, in whole or in part, at any time, and from time to time, into shares of Common Stock at the option of the noteholder. The conversion price is the lower of: (i) $10.00 per share of Common Stock and (ii) 70% of the volume weighted average price of the Common Stock on the trading market on which the Common Stock is then listed or quoted for trading for the prior ten (10) trading days (as adjusted for stock splits, stock combinations and similar events); provided, that if the Notes are not prepaid on or before May 5, 2020, then the conversion price shall be the lower of (x) 60% of the conversion price as calculated above or (y) $1.00 (as adjusted for stock splits, stock combinations and similar events). The conversion price of the Convertible Notes shall also be adjusted as a result of subsequent equity sales by the Company, with customary exceptions.

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2023 and 2022

(unaudited)

The exercise price of the Warrants shall be equal to the conversion price of the Convertible Notes, provided, that on the date that the Convertible Notes are no longer outstanding, the exercise price shall be fixed at the conversion price of the Convertible Notes on such date, with the exercise price of the Warrants thereafter (and the number of shares of Common Stock issuable upon the exercise thereof) being subject to adjustment as set forth in the Warrants. The warrants have a 5-year term.

The Company recorded a discount related to the Warrants of approximately $322,000, which includes an allocation of original issue discount (“OID”) and issue costs of $30,000 and $53,000 based on the relative fair value of the instruments as determined by using the Monte-Carlo simulation model. The Company also recorded the remaining debt discount related to the convertible debt OID of approximately $21,000 and debt issuance costs of $38,000 using the relative fair value method to be amortized as interest expense over the term of the loan using the straight-line method. Total discounts recorded were approximately $381,000.

On ~~March~~January 1927, ~~2021~~2022, the ~~holder~~conversion price of the ~~Convertible~~notes ~~Note~~and ~~converted~~warrants ~~$25,900~~was adjusted to be the lower of ~~interest~~(x) ~~into~~60% ~~25,900~~of ~~shares~~the conversion price as calculated above or (y) $0.78 as a result of issuance of common stock for a convertible note conversion.

On ~~July~~January 2910, ~~2021~~2023, the ~~holder~~conversion price of the ~~Convertible~~notes ~~Note~~and ~~converted~~warrants ~~$27,500~~was adjusted to be the lower of ~~interest~~(x) ~~into~~60% ~~27,500~~of ~~shares~~the conversion price as calculated above or (y) $0.56 as a result of issuance of common stock for a convertible note conversion.

OnThe ~~August~~Company 16recognized $20,600 ~~2021~~and $25,000 in interest expense related to the ~~holder~~notes offor the ~~Convertible~~three ~~Note~~months ~~converted~~ended ~~$25~~March 31,~~000~~ of2023 ~~principal~~ and ~~interest~~March ~~into 25~~31,~~000~~ 2022, ~~shares~~respectively. As of ~~common~~March ~~stock~~31, 2023, the debt discounts were fully amortized.

~~On September 13, 2021, the holder of the Convertible Note converted $32,500 of principal and interest into 32,500 shares of common stock.~~20

On October 4, 2021, the holder of the Convertible Note converted $26,250 of principal and interest into 26,250 shares of common stock.

On November 29, 2021, the holder of the Convertible Note converted $31,150 of principal and interest into 31,151 shares of common stock.

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~For the~~FOR ~~Three~~THE ~~and~~THREE ~~Nine~~MONTHS ~~Months~~ENDED ~~Ended~~MARCH ~~September 30~~31, 2023 and 2022

(~~Unaudited~~unaudited)

~~The~~As ~~total~~of ~~note~~March ~~principal~~31, ~~and~~2023, ~~interest~~the ~~converted~~Company ~~during~~remains ~~the~~in ~~year~~default ~~ended~~on ~~December~~the ~~31,~~repayment ~~2021,~~of ~~was~~ $~~168~~457,~~300~~359 in principal and ~~168~~$209,~~301~~600 ~~common~~of ~~shares~~accrued ~~issued~~interest ~~were valued~~on atthe ~~fair~~February 2020 ~~value~~Convertible ~~based~~Notes. onUpon ~~the~~demand ~~quoted~~for ~~trading~~repayment ~~prices~~at on the ~~conversion~~election ~~dates~~of ~~aggregating~~the ~~approximately $554~~holder,~~000~~ ~~resulting~~the inholder ~~a loss on debt extinguishment~~ of ~~$386,000.~~the InConvertible ~~addition,~~Note ~~derivative~~is ~~fair~~due ~~value~~140% of ~~$245,000 relating to~~ the aggregate ~~portion~~ of ~~the~~outstanding ~~Note~~principal, ~~converted~~interest, ~~was settled~~and ~~resulting~~other inexpenses ~~gain~~due onin ~~extinguishment~~respect of ~~approximately~~this ~~$245,000~~Convertible Note. The ~~net~~40% ~~loss~~premium onwill ~~extinguishment~~be ~~was~~recorded once ~~approximately~~a ~~$141,000~~demand occurs.

On January 27, 2022, the conversion price of the notes and warrants was adjusted to be the lower of (x) 60% of the conversion price as calculated above or (y) $0.78 as a result of issuance of common stock for a convertible note conversion.

For the three and nine months ended September 30, 2022, the Company recognized approximately $21,000 and $66,800 in interest expense related to the note, respectively. The Company recognized approximately $25,000 and $76,000 in interest expense related to the notes for the three and nine months ended September 30, 2021, respectively.

As of September 30, 2022, the Company had accrued interest on the February 2020 Convertible Note of approximately $168,000.

As of September 30, 2022, the Company remains in default on the repayment of remaining principal of $457,359 and accrued interest on the February 2020 Convertible Notes. Upon demand for repayment at the election of the holder, the holder of the Convertible Note is due 140% of the aggregate of outstanding principal, interest, and other expenses due in respect of this Convertible Note. The 40% premium will be recorded once a demand occurs.

Secured Convertible Promissory Note – June 2020

On June 26, 2020, the Company issued to an existing investor in the Company a 10% original issue discount Senior Secured Convertible Promissory Note with a principal of $58,055, for a purchase price of $52,500, net of the original issue discount of $5,555. The Convertible Note matured on December 26, 2020. Prior to default, interest accrued on the aggregate unconverted and then outstanding principal amount of the Note at the rate of 10% per annum, calculated on the basis of a 360-day year. The Company incurred approximately $14,000 in debt issuance costs. On August 5, 2020, the Company defaulted on certain covenants in the loan and the interest rate reset to the default rate of 18%.

The Note is convertible, in whole or in part, into shares of common stock of the Company at the option of the noteholder at a conversion price of $0.40 (as adjusted for stock splits, stock combinations and similar events); provided, that if an event of default has occurred under the Note, then the conversion price shall be 65% of the lowest closing bid price of the Company’s common stock as reported on its principal trading market for the twenty consecutive trading day period ending on (and including) the trading day immediately preceding the date on which the conversion notice was delivered. The conversion price shall also be adjusted for subsequent equity sales by the Company. Because the share price on the commitment date was in excess of the conversion price, the Company recorded a beneficial conversion feature of $50,000 related to this note that was credited to additional paid in capital and reduced the carrying amount. At the commitment date, the actual intrinsic value of the beneficial conversion feature was approximately $203,000. The discount recorded is being amortized to interest expense over the life of the loan using the straight-line method.

The obligations of the Company under the Note are secured by a senior lien and security interest in all of the assets of the Company and certain of its wholly-owned subsidiaries pursuant to the terms and conditions of a Security Agreement dated June 26, 2020 by the Company in favor of the noteholder. In connection with the issuance of the Note, the holders of the secured promissory notes that the Company issued to select accredited investors between June 28, 2019 and August 5, 2019 in the aggregate principal amount of approximately $5.7 million agreed to subordinate their lien and security interest in the assets of the Company and its subsidiaries as set forth in the Security Agreement dated June 28, 2019 that such holders entered into with the Company and its subsidiaries to the security interest granted to the holder of the Note.

On January 27, 2022, the conversion price of the note was adjusted to the lower of 65% of the lowest closing bid price of the Company’s common stock as reported on its principal trading market for the twenty consecutive trading day period ending on (and including) the trading day immediately preceding the date on which the conversion notice was delivered or $0.78 as a result of issuance of common shares for a convertible note conversion.

17On January 10, 2023, the conversion price of the note was adjusted to the lower of 65% of the lowest closing bid price of the Company’s common stock as reported on its principal trading market for the twenty consecutive trading day period ending on (and including) the trading day immediately preceding the date on which the conversion notice was delivered or $0.56 as a result of issuance of common shares for a convertible note conversion.

For both the three months ended March 31, 2023, and March 31, 2022, the Company recognized approximately $2,600 in interest expense related to the notes. As of March 31, 2023, the debt discount and issuance costs for the loan were fully amortized.

As of March 31, 2023, the Company remains in default on the repayment of principal of $58,055 and approximately $28,800 in accrued interest on the notes. Upon demand for repayment at the election of the holder, the holder of the note is due 140% of the aggregate of outstanding principal, interest, and other expenses due in respect of this Note. The 40% premium will be recorded once a demand occurs.

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~For the~~FOR ~~Three~~THE ~~and~~THREE ~~Nine~~MONTHS ~~Months~~ENDED ~~Ended~~MARCH ~~September 30~~31, 2023 and 2022

(~~Unaudited~~unaudited)

For both the three and nine-month periods ended September 30, 2022 and September 31, 2021 the Company recognized approximately $2,700 and $7,900 in interest related to the note.

As of September 30, 2022, the Company remains in default on the repayment of principal of $58,055 and approximately $23,500 in accrued interest on the notes. Upon demand for repayment at the election of the holder, the holder of the note is due 140% of the aggregate of outstanding principal, interest, and other expenses due in respect of this Note. The 40% premium will be recorded once a demand occurs.

Secured Convertible Promissory Note – October 2020

On October 30, 2020, the Company issued to an existing investor in and lender to the Company a 10% original issue discount senior secured convertible promissory note with a principal of $111,111, for a purchase price of $100,000. The note is convertible into shares of common stock of the Company at the option of the noteholder at a conversion price of $1.40 (as adjusted for stock splits, stock combinations and similar events); provided, that if an event of default has occurred under the Note, then the conversion price shall be 70% of then conversion price. The conversion price of the notes is subject to anti-dilution price protection and on March 19, 2021, the conversion price of the notes was adjusted to $1.00 per share as a result of subsequent equity sales by the Company.

The obligations of the Company under the note are secured by a senior lien and security interest in all of the assets of the Company.

The Company recorded approximately $9,000 in debt issuance cost to be amortized over the life of the loan using the straight-line method.

The interest rate on the note was 10% per annum, calculated on the basis of a 360-day year. On April 30, 2021, the note matured and the Company defaulted on the note and the interest rate on the loan reset to 18%.

Additionally, the Company issued the noteholder 79,366 warrants to purchase the Company’s common stock at $1.60 per share subject to certain adjustments as defined in the agreement. Until the Notes are no longer outstanding, the warrants have full-ratchet protection, are exercisable for a period of five years, and contain customary exercise limitations. On March 19, 2021, the exercise price of the warrants was adjusted to $1.00 and the Company issued an additional 47,619 warrants to the note holder. The Company recorded approximately $57,000 as a deemed dividend upon the repricing based upon the change in fair value of the warrants using a binomial valuation model. The Company used a risk-free rate of 0.16%, volatility of 262.27%, and expected term of 0.92 years in calculating the fair value of the warrants.

The Company recorded a discount related to the warrants of approximately $66,000, ~~including~~Including a discount of $6,000 and issuance costs of $5,000 based on the relative fair value of the instruments as determined by using the Black-Scholes valuation model. The Company recorded a beneficial conversion feature of $45,000 related to the note that was credited to additional paid in capital and reduced the carrying amount. The discount recorded is being amortized to interest expense over the life of the loan using the straight-line method. At the commitment date, the actual intrinsic value of the beneficial conversion feature was approximately $69,000. The Company also recorded a debt discount related to the convertible debt of approximately $5,000 and debt issuance cost of $4,000 using the relative fair value method to be amortized as interest expense over the term of the loan using the straight-line method.

On January 27, 2022, the exercise price of the notes and warrants was adjusted from the default conversion price of $0.98 to $0.78 as a result of a convertible note exercise and the Company issued an additional 35,816 warrants to the note holder.

AsOn ofJanuary ~~September 30~~10, ~~2022~~2023, ~~162,800~~the ~~warrants~~exercise ~~were~~price ~~outstanding~~of ~~that~~the ~~were~~notes ~~issued~~and ~~with~~warrants ~~the~~was ~~October~~adjusted ~~2020~~from ~~convertible~~the ~~note~~default atconversion ~~an exercise~~ price of $0.78 to $0.56 as a result of a convertible note exercise and the Company issued an additional 64,001 warrants to the note holder.

~~For~~As ~~the~~of ~~three~~March ~~and nine months ended September 30~~31, ~~2022~~2023, ~~the Company recognized approximately $5~~226,~~100~~801 ~~and $15,200~~warrants ~~in interest~~were ~~expense~~outstanding ~~for~~that ~~the~~were ~~note,~~issued ~~respectively.~~with ~~For~~ the ~~three~~October ~~and~~2020 ~~nine~~convertible ~~months~~note ~~ended~~at ~~September~~an ~~30,~~exercise ~~2021,~~price ~~the Company recognized approximately $5,000 and $14,800 in interest expense including $0 and $2,600 related to the amortization~~ of ~~debt issuance costs, respectively. For the three and nine-month period ended September 30, 2021, the Company~~ ~~recognized~~ $0 ~~and $79,000 and related to the amortization of debt discount~~. ~~As of September 30, 2022, the debt discount and issuance costs for the note were fully amortized~~56.

18For both the three months ended March 31, 2023, and March 31, 2022, the Company recognized approximately $5,000 in interest expense for the note. As of March 31, 2023, the debt discount and issuance costs for the note were fully amortized.

As of March 31, 2023, the Company has outstanding principal of $111,111 and accrued interest on the note of approximately $44,500.

As of March 31, 2023, the Company remains in default on the repayment of principal and interest on the notes. Upon demand for repayment at the election of the holder, the holder of the note is due 125% of the aggregate of outstanding principal, interest, and other expenses due in respect of this Note. The 25% premium will be recorded once a demand occurs.

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~For the~~FOR ~~Three~~THE ~~and~~THREE ~~Nine~~MONTHS ~~Months~~ENDED ~~Ended~~MARCH ~~September 30~~31, 2023 and 2022

(~~Unaudited~~unaudited)

As of September 30, 2022, the Company has outstanding principal of $111,111 and accrued interest on the note of approximately $34,400.

As of September 30, 2022, the Company remains in default on the repayment of principal and interest on the notes. Upon demand for repayment at the election of the holder, the holder of the note is due 125% of the aggregate of outstanding principal, interest, and other expenses due in respect of this Note. The 25% premium will be recorded once a demand occurs.

Secured Convertible Promissory Note – January 2021

On January 31, 2021, the Company issued to an existing investor in and lender to the Company a 10% original issue discounted Senior Secured Convertible Promissory Note with a principal of $52,778, for a purchase price of $47,500, net of original issue discount of $5,278. The Note is convertible into shares of common stock of the Company at the option of the noteholder at a conversion price of $1.40 (as adjusted for stock splits, stock combinations and similar events); provided, that if an event of default has occurred under the Note, then the conversion price shall be 70% of the then conversion price. The conversion price of the notes is subject to anti-dilution price protection and will be adjusted upon subsequent equity sales by the Company.

The obligations of the Company under the Note are secured by a senior lien and security interest in all assets of the Company.

Additionally, the Company issued to the investor 37,699 warrants to purchase the Company’s common stock at an exercise price of $1.60 per share subject to certain adjustments as defined in the agreement. Until the Notes are no longer outstanding, the warrants have full-ratchet protection, are exercisable for a period of five years, and contain customary exercise limitations. On March 19, 2021, the exercise price of the warrants was adjusted to $1.00 and the Company issued an additional 22,619 warrants to the note holder. The Company recorded approximately $27,000 as a deemed dividend upon the repricing based upon the change in fair value of the warrants using a binomial valuation model. The Company used a risk-free rate of 0.16%, volatility of 262.27%, and expected term of 0.97 years in calculating the fair value of the warrants.

The Company recorded approximately $2,000 in debt issuance cost to be amortized over the life of the loan using the straight-line method.

The interest rate on the note was 10% per annum, calculated on the basis of a 360-day year. On July 31, 2021, the note matured and the Company defaulted on the note and the interest rate on the loan reset to the default rate of 18% per annum.

The Company recorded a discount related to the warrants of approximately $32,000, which includes an allocated original issue discount, of $3,000 and allocated issuance costs of $1,000 based on the relative fair value of the instruments as determined by using the Black-Scholes valuation model. The assumptions used in the Black-Scholes model were a risk-free rate of 0.45%, volatility of 240.83%, and an expected term of one year in calculating the fair value of the warrants.

The Company also recorded a debt discount related to the convertible debt of approximately $2,000 remaining original issue discount and remaining debt issuance cost of $1,000 using the relative fair value method to be amortized as interest expense over the term of the loan using the straight-line method.

Total discounts recorded including the original issue discount were approximately $35,000.

On January 27, 2022, the exercise price of the notes and warrants was adjusted from the default conversion price of $0.98 to $0.78, as a result of a convertible note exercise and the Company issued an additional 17,012 warrants to the note holder.

AsOn ofJanuary ~~September 30~~10, ~~2022~~2023, ~~77,330~~the ~~warrants~~exercise ~~were~~price ~~outstanding~~of ~~that~~the ~~were~~notes ~~issued~~and ~~with~~warrants ~~the~~was ~~January~~adjusted ~~2021~~from ~~convertible~~the ~~note~~default atconversion ~~an exercise~~ price of $0.78 to $0.56, as a result of a convertible note exercise and the Company issued an additional 30,398 warrants to the note holder.

~~For~~As ~~the~~of ~~three~~March ~~and nine months ended September 30~~31, ~~2022~~2023, ~~the Company recognized approximately $2~~107,~~400~~728 ~~and~~warrants ~~$7,200~~were inoutstanding ~~interest~~that ~~expense~~were onissued ~~the note,~~with ~~respectively. For~~ the ~~three~~January ~~and nine-month periods ended September 30,~~ 2021, ~~the~~convertible ~~Company~~note ~~recognized~~at ~~approximately~~an ~~$2,900~~exercise ~~and~~price ~~$5,700 in interest expense including approximately $100 and $700 related to the amortization~~ of ~~debt issuance costs, respectively. For the three~~ ~~and nine-month period ended September 30, 2021, the Company recognized~~ $~~5,600 and $34,000 related to the amortization of debt discount~~0. ~~As of September 30, 2022, the debt discount and issuance costs on the note were fully amortized~~56.

1923

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~For the~~FOR ~~Three~~THE ~~and~~THREE ~~Nine~~MONTHS ~~Months~~ENDED ~~Ended~~MARCH ~~September 30~~31, 2023 and 2022

(~~Unaudited~~unaudited)

AsFor ofboth ~~September~~three 30months ended March 31, 2023 and March 31, 2022, the Company ~~has~~recognized ~~outstanding~~approximately ~~principal of~~ $522,~~778~~400 onin ~~the~~interest ~~note~~expense. ~~and~~As ~~has~~of ~~recorded~~March 31, ~~approximately $13~~2023,~~900~~ ofthe ~~accrued interest~~debt ~~included~~discount inand ~~accrued~~issuance ~~expenses~~costs on the ~~accompanying~~note ~~balance~~were ~~sheet~~fully amortized.

As of ~~September~~March 3031, ~~2022~~2023, the Company ~~remains~~has inoutstanding ~~default on the repayment of~~ principal ~~and accrued interest on the notes. Upon demand for repayment at the election~~ of ~~the holder~~$52,778 ~~the~~on ~~holder of~~ the note isand ~~due~~has ~~125%~~recorded ofapproximately ~~the~~$18,700 ~~aggregate~~ of ~~outstanding~~accrued ~~principal,~~ interest~~, and~~ ~~other~~included ~~expenses due~~ in ~~respect~~accrued ofexpenses ~~this~~on ~~Note.~~the ~~The~~accompanying ~~25%~~consolidated ~~premium~~balance ~~will be recorded once a demand occurs~~sheet.

As of March 31, 2023, the Company remains in default on the repayment of principal and accrued interest on the notes. Upon demand for repayment at the election of the holder, the holder of the note is due 125% of the aggregate of outstanding principal, interest, and other expenses due in respect of this Note. The 25% premium will be recorded once a demand occurs

Secured Convertible Promissory Note – April 2021

On April 12, 2021, the Company issued to an accredited investor in and lender to the Company a 10% original issue discounted Senior Secured Convertible Promissory Note with a principal amount of $66,667, for a purchase price of $60,000 net of an original discount of $6,667. Additionally, the Company issued to the investor 40,000 five-year warrants to purchase the Company’s common stock at an exercise price of $1.90 per share. The warrants have full ratchet protection.

The note matured on October 12, 2021., ~~Prior~~prior to default, interest accrued on the aggregate unconverted and then outstanding principal amount of the note at the rate of 10% per annum, calculated on-the-basis of a 360-day year. On October 12, 2021, the Company defaulted on the note and the interest rate on the note reset to 18% per annum.

The Company recorded a discount related to the warrants of approximately $34,000, which includes approximately $3,700 of OID discount allocated under the relative fair value method, and a remaining discount related to the OID of $3,000 based on the relative fair value of the instruments. The fair value of the warrants on which the relative fair value is based was determined by using the Black-Scholes valuation model. The assumptions used in the Black-Scholes model were a risk-free rate of 0.89%, volatility of 240.64%, and an expected term of one year in calculating the fair value of the warrants.

On June 25, 2021, the exercise price of the warrants was adjusted to $1.50 and the Company issued an additional 10,667 warrants to the note holder. The Company recorded approximately $11,000 as a deemed dividend upon the repricing based upon the change in fair value of the warrants using a binomial valuation model. The Company used a risk-free rate of 0.92%, volatility of 247.52%, and expected term of 0.96 years in calculating the fair value of the warrants.

On November 4, 2021, the Company issued 7,662 shares of common stock upon a cashless exercise of 12,500 warrants issued with the April 2021 Convertible Note.

On November 30, 2021, the exercise price of the warrants was adjusted to $1.00 based on a note conversion at $1.00 and the Company issued an additional 19,084 warrants to the note holder.

On January 27, 2022, the exercise price of the note and warrants was adjusted from the default conversion price of $1.05 to $0.78 based on a convertible note conversion at $0.78 and the Company issued an additional 16,147 warrants to the note holder.

AsDuring ofthe ~~September~~year 30ended December 31, 2022, 73the Company repaid $25,~~398~~000 ~~warrants~~of ~~were~~principal ~~outstanding~~on ~~that~~the ~~were~~note. ~~issued~~The ~~with~~Company recorded approximately $19,500 gain on debt extinguishment resulting from the ~~April~~settlement ~~2021~~of ~~convertible~~the ~~note~~derivative atas ana ~~exercise~~result ~~price~~of repayment of $0 the note.~~78.~~

During the three-months ended September 30, 2022, the Company repaid $25,000 of principal on the note. The Company recorded approximately $19,500 gain on debt extinguishment resulting from the settlement of the derivative as a result of repayment of the note.24

For the three and nine months ended September 30, 2022, the Company recognized approximately $1,800 and $7,800 in interest expense for the notes. For the three and nine-month period ended September 30, 2021, the Company recognized approximately $19,000 and $35,000, respectively related to the amortization of debt discount. For the three and nine-month periods ended September 30, 2021, the Company recognized approximately $1,700 and $3,200 in interest expense, As of September 30, 2022, the debt discounts and issuance costs on the note were fully amortized.

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~For the~~FOR ~~Three~~THE ~~and~~THREE ~~Nine~~MONTHS ~~Months~~ENDED ~~Ended~~MARCH ~~September 30~~31, 2023 and 2022

(~~Unaudited~~unaudited)

AsOn ofJanuary ~~September 30~~10, ~~2022~~2023, the ~~Company~~exercise ~~has~~price ~~recorded $41,667~~ of ~~principal~~the note and ~~approximately~~warrants ~~$13,900~~was adjusted from the default conversion price of ~~accrued~~$0.78 ~~interest~~to ~~for~~$0.56 ~~the~~based on a convertible note onexercise at $0.56 and the ~~accompanying~~ ~~balance~~Company ~~sheet~~issued an additional 28,834 warrants to the note holder.

As of ~~September~~March 3031, ~~2022~~2023, ~~the~~102,232 ~~Company~~warrants ~~remains~~were inoutstanding ~~default~~that onwere ~~the~~issued ~~repayment~~with ~~of principal and accrued interest on~~ the ~~notes.~~April ~~Upon~~2021 ~~demand~~convertible ~~for repayment~~note at ~~the~~an ~~election~~exercise ofprice ~~the holder, the holder~~ of ~~the note is due 125% of the aggregate of outstanding principal, interest, and other expenses due in respect of this Note~~$0. ~~The 25% premium will be recorded once a demand occurs~~56.

For both the three months ended March 31, 2023 and March 31, 2022, the Company recognized approximately $1,900 and $3,000 in interest expense. respectively for the notes. As of March 31, 2023, the debt discount and issuance costs on the note were fully amortized.

As of March 31, 2023, the Company has recorded $41,667 of principal and approximately $18,300 of accrued interest for the note on the accompanying consolidated balance sheet.

Secured Convertible Promissory Note – June 2021

On June 25, 2021, the Company issued to an accredited investor in and lender to the Company a 5% original issue discounted Senior Secured Convertible Promissory Note with a principal amount of $66,500, for a purchase price of $63,000, net of an original issue discount of $3,500. Additionally, the Company issued to the investor 40,000 ~~six~~three-year warrants to purchase the Company’s common stock at an exercise price of $1.90 per share. Upon subsequent down-round equity sales by the Company, the number of shares issuable upon exercise of the Warrant shall be proportionately adjusted such that the aggregate exercise price of this Warrant shall remain $76,000 which is a full ratchet price protection provision.

The note ~~matured~~matures onone ~~June~~year 25from issuance, ~~2022~~or such earlier date as the note is required or permitted to be repaid. Interest ~~accrues~~shall onaccrue on the aggregate unconverted and then outstanding principal amount of the note at the rate of 10% per annum, calculated on the basis of a 365-day year.

The Note is convertible, in whole or in part, at any time, and from time to time, into shares of the common stock of the Company at the option of the noteholder at a conversion price of $1.50 (as adjusted for stock splits, stock combinations and similar events); provided, however that in the event, the Company’s Common Stock trades below $1.60 per share for more than three (3) consecutive trading days, the ~~holder~~ Holder of this Note is entitled, at its option, to convert all or any amount of the principal face amount of this Note then outstanding ~~into~~ into shares of the Company’s common stock at a price for each share of Common Stock equal to 65% of the lowest trading price of ~~the~~ the Common Stock for the twenty prior trading days including the day upon which a Notice of Conversion is received. The conversion discount, look back period and other terms of the Note will be adjusted on a ratchet basis if the Company offers a more favorable conversion discount, prepayment rate, interest rate, (whether through a straight discount or in combination with an original issue discount), look back period or other more favorable term to another party for any financings while this Note is in effect.

The obligations of the Company under the Note are secured by a senior lien and security interest in all assets of the Company.

The Company incurred approximately $9,300 in debt issuance costs.

The Company also issued 2,377 shares of common stock as a commission fee to the investment banker. The fair value of the common stock which was approximately $5,040 was recorded as debt issuance expense.

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2023 and 2022

(unaudited)

Due to the variability in the conversion price of the Note the embedded conversion option has been bifurcated and reflected as a derivative liability with an initial fair value of $102,823 with $87,039 charged to derivative expense and $15,784 recorded as a debt discount.

Total discounts recorded were $66,500. The Company recorded an original issue discount of $3,500, a discount of $9,300 for issuance costs, a discount related to the warrants of approximately $37,916 and a discount related to the derivative of $15,784 based on the relative fair value of the instruments. The warrant fair value on which the relative fair value was based was determined by using a simple binomial lattice model. The assumptions used in the model were a risk-free rate of 0.48%, volatility of 302.11%, and an expected term of 0.60 years in calculating the fair value of the warrants.

On August 11, 2021, the exercise price of the warrants was adjusted to $1.50 and the Company issued an additional 10,667 warrants to the note holder. The Company recorded approximately $25,000 as a deemed dividend upon the repricing based upon the change in fair value of the warrants using a binomial valuation model. The Company used a risk-free rate of 0.81, volatility of 209%, and expected term of 0.57 years in calculating the fair value of the warrants.

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the Three and Nine Months Ended September 30, 2022

(Unaudited)

On October 27, 2021, the Company and the institutional investor who holds the convertible promissory note agreed to extend the maturity date of the note by six months to December 25, 2022 for no consideration.

On November 30, 2021, the exercise price of the warrants was adjusted to $1.00 based on a note conversion at $1.00 and the Company issued an additional 25,333 warrants to the note holder.

On January 27, 2022, the holder of the June 25, 2021, convertible note converted $9,500 of principal and $421 of interest at $0.78 per share into 12,721 shares of common stock that were valued at fair value based on the quoted trading prices on the conversion dates aggregating approximately $28,000 resulting in a loss on debt extinguishment of $18,000. In addition, derivative fair value of $23,000 relating to the portion of the Note converted was settled resulting in a gain on extinguishment of approximately $23,000. The net gain on extinguishment was approximately $5,000. In addition, the conversion price of the warrants issued with the notes were adjusted to $0.78 per share and the Company issued an additional 21,436 warrants to the holder of the note.

AsOn ofDecember ~~September 30~~25, 2022, ~~97,436~~the ~~warrants~~Company ~~were~~defaulted ~~outstanding~~on ~~that were issued with~~ the ~~June~~extended ~~2021~~maturity ~~convertible~~date ~~note~~of atthe ~~an exercise price of $0~~note.~~78.~~

~~For~~On ~~the~~January ~~three and nine months ended September 30~~10, ~~2022~~2023, the ~~Company~~exercise ~~recognized~~price ~~approximately~~of ~~$10,000~~the notes and ~~$29,600~~warrants ~~related~~was toadjusted from the ~~amortization of~~default ~~debt~~conversion ~~discounts~~price ~~and~~of ~~approximately~~ $~~3,400~~0.78 ~~and~~to $100.56,~~400~~ inas ~~interest~~a result ~~expense~~of ~~related~~a toconvertible ~~the~~ note. ~~For~~exercise ~~the three~~ and ~~nine-month period ended September 30, 2021,~~ the Company ~~recognized~~issued ~~approximately~~an ~~$30~~additional 38,~~810~~303 ~~for~~warrants ~~the~~to ~~amortization of~~ the ~~debt~~note ~~discount~~holder. ~~For both the three and nine-month periods ended September 30, 2021, the Company recognized approximately $3,000 in interest expense.~~

As of ~~September~~March 3031, ~~2022~~2023, ~~the Company has recorded $57~~135,~~000~~739 ofwarrants were outstanding ~~principal~~that ~~and~~were ~~approximately~~issued ~~$15,700~~with ofthe ~~accrued~~June ~~interest~~2021 ~~and~~convertible ~~$9,100 of~~note ~~unamortized~~at ~~discount~~an ~~and~~exercise ~~issuance~~price ~~expenses~~of $0.56.

For the three months ended March 31, 2023, the Company recognized $3,400 in interest expense related to the note.

For the three months ended March 31, 2022, the Company recognized approximately $9,800 related to the amortization of debt discounts and approximately $3,500 in interest expense related to the note. As of March 31, 2023, the debt discount on the note was fully amortized.

At March 31, 2023, the Company has recorded $57,000 of outstanding principal and approximately $22,500 of accrued interest.

Convertible Promissory Note – August 11, 2021

On August 11, 2021, the Company entered into a Securities Purchase Agreement with an accredited institutional investor pursuant to which the Company issued to the investor its Original Issue Discount Secured Convertible Promissory Note in the principal amount of $220,500 and warrants to purchase 40,000 shares of the common stock of the Company for which the Company received consideration of $210,000 net of an original issue discount of $10,500. In addition, the Company entered into a Registration Rights Agreement with the investor and issued the investor 5,000 common shares as a commitment fee.

The note matured on August 11, 2022 and absent an event of default provides for an interest rate of 10% per annum, payable at maturity, and is convertible into common stock of the Company at a price of $1.50 per share, subject to anti-dilution adjustments in the event of certain corporate events as set forth in the Note, provided that if the average closing price of the Company’s common stock during any Nine consecutive trading days is below $1.60, the conversion price shall be reduced to 65% of the lowest trading price during the 20 consecutive trading days immediately preceding the conversion date. On November 9, 2021, the Company defaulted on certain covenants in the note and the interest rate on the note reset to 24% per annum.26

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~For the~~FOR ~~Three~~THE ~~and~~THREE ~~Nine~~MONTHS ~~Months~~ENDED ~~Ended~~MARCH ~~September 30~~31, 2023 and 2022

(~~Unaudited~~unaudited)

The note matured in August 2021 and absent an event of default provides for an interest rate of 10% per annum, payable at maturity, and is convertible into common stock of the Company at a price of $1.50 per share, subject to anti-dilution adjustments in the event of certain corporate events as set forth in the Note, provided that if the average closing price of the Company’s common stock during any Nine consecutive trading days is below $1.60, the conversion price shall be reduced to 65% of the lowest trading price during the 20 consecutive trading days immediately preceding the conversion date. On November 9, 2021, the Company defaulted on certain covenants in the note and the interest rate on the note reset to 24% per annum.

In addition to customary anti-dilution adjustments the Note provides, subject to certain limited exceptions, that if the Company issues any common stock or common stock equivalents, as defined in the Note, at a per share price lower than the conversion price then in effect, the conversion price will be reduced to the per share price at which such shares or common share equivalents were sold.

The ~~warrants~~Warrants are initially exercisable for a period of ~~three~~five years at a price of $1.90 per share, subject to customary anti-dilution adjustments upon the occurrence of certain corporate events as set forth in the ~~warrant~~Warrant.

The Company incurred approximately $30,000 in debt issuance costs.

The Company also issued 7,000 shares of common stock to the investment banker as a commission on the note.

Due to the variability in the conversion price of the Note the embedded conversion option has been bifurcated and reflected as a derivative liability with an initial fair value of $340,893 with $234,388 charged to derivative expense and $106,505 recorded as a debt discount.

The Company recorded a total debt discount of $220,500 including an original issue discount of $10,500, a discount related to the warrants of approximately $56,454 a discount related to issuance costs of $30,000 and a discount related to the issuance of common stock of approximately $17,041, and a $106,505 discount related to the initial derivative value of the embedded conversion feature on the note all based on the relative fair value of the instruments.,

The fair value of the warrants on which the relative fair value was based was determined by using a simple binomial lattice model. The assumptions used in the model were a risk-free rate of 0.81%, volatility of 253%, and an expected term of one year in calculating the fair value of the warrants. The discounts are being amortized over the term of the convertible note.

On November 30, 2021, the exercise price of the warrants was adjusted to $1.00 based on a note conversion at $1.00 and the Company issued an additional 36,000 warrants to the note holder.

On January 27, 2022, the conversion price of the notes was adjusted to the lower of $0.78 per share, or provided that if the average closing price of the Company’s common stock during any six consecutive trading days is below $1.60, the conversion price shall be reduced to 65% of the lowest trading price during the 20 consecutive trading days immediately preceding the conversion date. In addition, the exercise price of the warrant was adjusted to $0.78 per share and the Company issued an additional 21,436 warrants to the holder of the note. Both the conversion price of the note and warrants were adjusted as a result of a convertible note exercise at $0.78 per share.

On May 12, 2022, the Company repaid $135,695 of principal and $64,305 of interest including $54,278 of interest due as a result of early redemption on the note. In addition, the holder of the note extended the maturity date on the note to September 30, 2022, when the outstanding balance of principal and interest of $128,502 is due on the note. The Company recorded a $45,200 gain on debt extinguishment as a result of repayment of the note. On September 30, 2022, the Company defaulted on the outstanding balance of principal and interest on the note.

AsOn January 10, 2023, the conversion price of ~~September~~the 30notes was adjusted to the lower of $0.56 per share, ~~2022~~or provided that if the average closing price of the Company’s common stock during any six consecutive trading days is below $1.60, 97the conversion price shall be reduced to 65% of the lowest trading price during the 20 consecutive trading days immediately preceding the conversion date. In addition,~~436~~ ~~warrants~~the exercise ~~were~~price ~~outstanding~~of ~~that~~the ~~were~~warrant ~~issued~~was ~~with~~adjusted to $0.56 per share and the ~~August~~Company 11issued an additional 38,303 ~~2021~~warrants ~~convertible~~to the holder of the note. atBoth anthe ~~exercise~~conversion price of the note and warrants were adjusted as a result of a convertible note exercise at $0.7856 per share.

For the three and nine months ended September 30, 2022, the Company recognized approximately $39,900 and $134,000 related to the amortization of debt discount and approximately $6,800 and $92,000 in interest expense related to the note. Interest expense for the three months ended September 30, 2022, included approximately $67,000 in additional interest accrued due to penalties incurred for early redemption of the note. For the three and nine-month period ended September 30, 2021, the Company recognized approximately $30,810 for the amortization of the debt discount. For both the three and nine-month periods ended September 30, 2021, the Company recognized approximately $3,000 in interest expense.27

As of September 30, 2022, the Company has remaining $85,000 of outstanding principal and approximately $43,700 of accrued interest.

Convertible Promissory Note – August 17, 2021

On August 17, 2021, the Company entered into a Securities Purchase Agreement with an accredited institutional investor pursuant to which the Company issued to the investor its Original Issue Discount Secured Convertible Promissory Note in the principal amount of $220,500 and warrants to purchase 40,000 shares of the common stock of the Company for which the Company received consideration of $210,000 net of original discount of $10,500. In addition, the Company entered into a Registration Rights Agreement with the investor and issued the investor 5,000 common shares as a commitment fee.

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~For the~~FOR ~~Three~~THE ~~and~~THREE ~~Nine~~MONTHS ~~Months~~ENDED ~~Ended~~MARCH ~~September 30~~31, 2023 and 2022

(~~Unaudited~~unaudited)

~~The~~As ~~note matures on August 17, 2022 and provides for an interest rate~~ of ~~10%~~March ~~per annum~~31, ~~payable at maturity~~2023, ~~and is convertible into common~~135,739 ~~stock~~warrants ofwere ~~the~~outstanding ~~Company~~that atwere aissued ~~price of $1.50 per share, subject to anti-dilution adjustments in the event of certain corporate events as~~with ~~set forth in~~ the ~~Note~~August 11, ~~provided~~2021 ~~that~~convertible ifnote ~~the~~at ~~average~~an ~~closing~~exercise price of ~~the Company’s common stock during any three consecutive trading days is below~~ $10.~~60, the conversion price shall be reduced to 65% of the lowest trading price during the 20 consecutive trading days immediately preceding the conversion date~~56. ~~The embedded conversion option will be treated as a bifurcated derivative liability.~~

For the three months ended March 31, 2023, the Company recognized approximately $5,000 of interest expense related to the note. For the three months ended March 31, 2022, the Company recognized approximately $54,400 related to the amortization of debt discount and approximately $12,400 in interest expense related to the note. As of March 31, 2023, the debt discount on the note was fully amortized.

At March 31, 2023, the Company has remaining $84,800 of outstanding principal and approximately $53,800 of accrued interest.

Convertible Promissory Note – August 17, 2021

The note matures one year from issuance and provides for an interest rate of 10% per annum, payable at maturity, and is convertible into common stock of the Company at a price of $1.50 per share, subject to anti-dilution adjustments in the event of certain corporate events as set forth in the Note, provided that if the average closing price of the Company’s common stock during any three consecutive trading days is below $1.60, the conversion price shall be reduced to 65% of the lowest trading price during the 20 consecutive trading days immediately preceding the conversion date. The embedded conversion option will be treated as a bifurcated derivative liability.

The Warrants are initially exercisable for a period of ~~Nine~~five years at a price of $1.90 per share, subject to customary anti-dilution adjustments upon the occurrence of certain corporate events as set forth in the ~~Warrant~~warrant.

The Company incurred approximately $30,000 in debt issuance costs. The Company also issued 5,631 shares of common stock to the investment banker as a commission on the note.

Due to the variability in the conversion price of the Note, the embedded conversion option has been bifurcated and reflected as a derivative liability with an initial fair value of $398,404 with $297,833 charged to derivative expense and $100,571 recorded as a debt discount.

The Company recorded a total debt discount of $220,500 including an original issue discount of $10,500, a discount related to the warrants of approximately $62,220 a discount related to issuance costs of $30,000 a discount related to the issuance of common stock of approximately $17,209, and a $100,571 discount related to the initial derivative value of the embedded conversion feature on the Note all based on the relative fair value of the instruments.

The fair value of the warrants on which the relative fair value was based was determined by using a simple binomial lattice model. The assumptions used in the model were a risk-free rate of 0.77%, volatility of 254%, and an expected term of one year in calculating the fair value of the warrants. The discounts are being amortized over the life of the convertible note.

On October 27, 2021, the Company and the institutional investor who holds the promissory note agreed to extend the maturity date the notes by ~~Nine~~six months to February 17, 2023, for no consideration.

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2023 and 2022

(unaudited)

On November 15, 2021, the Company defaulted on certain covenants in the note and the interest rate on the note reset to 24% per annum.

On November 30, 2021, the exercise price of the warrants was adjusted to $1.00 based on a note conversion at $1.00 and the Company issued an additional 36,000 warrants to the note holder.

AsOn January 10, 2023, the conversion price of ~~September~~the 30notes was adjusted to the lower of $0.56 per share, ~~2022~~or provided that if the average closing price of the Company’s common stock during any six consecutive trading days is below $1.60, 97the conversion price shall be reduced to 65% of the lowest trading price during the 20 consecutive trading days immediately preceding the conversion date. In addition,~~436~~ ~~warrants~~the exercise ~~were~~price ~~outstanding~~of ~~that~~the ~~were~~warrant ~~issued~~was ~~with~~adjusted to $0.56 per share and the ~~August~~Company 17issued an additional 38,303 ~~2021~~warrants ~~convertible~~to the holder of the note. atBoth anthe ~~exercise~~conversion price of the note and warrants were adjusted as a result of a convertible note exercise at $0.7856 per share.

~~For~~On ~~the~~February ~~three and nine months ended September 30~~17, ~~2022~~2023, the Company ~~recognized~~defaulted ~~approximately~~on ~~$35,400 and $105,000 related to~~ the ~~amortization of~~extended ~~debt~~maturity ~~discount~~date ~~and~~for ~~$12,700 and $37,700 in interest expense related to~~ the ~~note,~~convertible respectively. For both the three and nine months ended September 30, 2021, the Company recognized approximately $27,200 related to the amortization of debt discount and $2,700 in interest expense related to the note.

As of ~~September~~March 3031, ~~2022~~2023, ~~the~~135,739 ~~Company~~warrants ~~has~~were ~~recorded~~outstanding ~~$220,500~~that ofwere ~~outstanding~~issued ~~principal~~with ~~and~~the ~~approximately~~convertible ~~$53,100~~note ofat ~~accrued~~an ~~interest~~exercise ~~and~~price ~~$52,800~~ of ~~unamortized discount and issuance expenses~~$0.56.

24For the three months ended March 31, 2023, the Company recognized approximately $12,400 in interest expense related to the note. For the three months ended March 31, 2022, the Company recognized approximately $34,700 related to the amortization of debt discount and $12,400 in interest expense related to the note. As of March 31, 2023, the debt discount on the note was fully amortized.

~~ADHERA~~As ~~THERAPEUTICS~~of March 31, ~~INC.~~2023, ~~AND~~the ~~SUBSIDIARIES~~Company has recorded $220,500 of outstanding principal and approximately $78,200 of accrued interest on the note.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the Three and Nine Months Ended September 30, 2022

(Unaudited)

Convertible Promissory Note – October 4, 2021

On October 4, 2021, the Company entered into a Securities Purchase Agreement (“SPA”) with an institutional investor pursuant to which the Company issued the Buyer a 10% Convertible Redeemable Note in the principal amount of $131,250 and a six-year warrant to purchase 23,810 shares of common stock of the Company for which the Company received proceeds of $110,000. In addition, the Company entered into a Registration Rights Agreement with the investor and issued the investor 2,977 common shares as a commitment fee.

The Note is due October 4, 2022. The Note provides for interest at the rate of 10% per annum, payable in seven equal monthly payments beginning on August 15, 2022, through the maturity date. The Note is convertible into shares of common stock at any time following the date of cash payment at the Buyer’s option at a conversion price of $1.50 per share, subject to certain adjustments.

The warrants are exercisable for three-years from October 4, 2021, at an exercise price of $1.90 per share, subject to certain adjustments, which exercise price may be paid on a cashless basis. The aggregate exercise price is $45,238.

The Company incurred approximately $15,000 in debt issuance costs. The Company also issued 2,173 shares of common stock to the investment banker as a commission on the note.

Due to ~~insufficient~~the lack of authorized shares, the embedded conversion option has been bifurcated and reflected as a derivative liability with an initial fair value of $564,943 with $487,052 charged to derivative expense and $77,891 recorded as a debt discount.

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2023 and 2022

(unaudited)

The Company recorded a total debt discount of $131,250 including an original issue discount of $6,250, a discount related to issuance costs of $15,000, a discount related to the issuance of common stock of $32,109, and a $77,891 discount related to the initial derivative value of the embedded conversion feature on the Note all based on the relative fair value of the instruments. The discounts are being amortized over the life of the convertible note.

On January 2, 2022, the Company defaulted on certain covenants contained in the October 4, 2021, convertible note and the interest rate reset to 16%.

On January 27, 2022, the exercise price of the note was adjusted to $0.78 based on a convertible note conversion at $0.78.

On May 12, 2022, the Company repaid $83,500 of principal on the note and repurchased 2,977 shares of common stock issued to the holder as an original commitment fee on the note for $1,000. The repurchase was recorded at cost as treasury stock on the accompanying ~~balance~~consolidated balance sheet. In addition during the year, the Company repaid an additional $1131,~~571~~042 of principal and $8,~~428~~905 of interest on the note. The Company recorded approximately $8196,~~700~~000 gain on debt extinguishment resulting from the settlement of the derivative as a result of repayment of the note.

~~For~~On ~~the~~January ~~three months ended September 30~~10, ~~2022~~2023, the ~~Company~~exercise ~~repaid~~price ~~$19,471~~ of ~~principal and $476 of interest on~~ the note. ~~The~~was ~~Company~~adjusted ~~recorded approximately~~to $~~14,800~~0.56 ~~gain~~based on ~~debt extinguishment resulting from the settlement of the derivative as~~ a ~~result~~convertible ofnote ~~repayment~~conversion ofat ~~the note~~$0.56.

AsOn ofMarch ~~September 30~~9, ~~2022~~2023, ~~23,810~~the ~~warrants~~Company ~~were~~repaid ~~outstanding~~$2,500 ~~that~~of ~~were~~principal ~~issued~~on ~~with~~ the ~~October 4, 2021 convertible~~ note ~~at an exercise price of $1~~.~~90.~~

For the three ~~and nine~~ months ended ~~September~~March 3031, ~~2022~~2023, the Company recognized approximately $33600 in interest expense related to the note. For the three months ended March 31,~~100~~ ~~and~~2022, the Company recognized approximately $9832,~~200~~400 related to the amortization of debt discount and approximately $~~500 and $~~5,~~700~~000 in interest expense related to the note~~, respectively~~. NoAs ~~interest~~of ~~expense~~March or31, ~~debt discount~~2023, ~~was~~the ~~recognized~~debt ~~for~~discount on the ~~same~~note ~~period~~was offully ~~2021~~amortized.

As of ~~September~~March 3031, ~~2022~~2023, the Company has recorded approximately $1614,~~708~~200 of outstanding principal and approximately $1,~~100~~400 of ~~unamortized~~accrued ~~discount and issuance expenses. No~~ interest ~~on the note was due as of September 30, 2022~~.

Convertible Promissory Note – October 7, 2021

On October 7, 2021, the Company entered into a Securities Purchase Agreement (“SPA”) with an institutional investor pursuant to which the Company issued the investor a 10% Convertible Redeemable Note in the principal amount of $131,250 and a three-year warrant to purchase 23,810 shares of common stock of the Company for which the Company received proceeds of $110,000. In addition, the Company entered into a Registration Rights Agreement with the investor and issued the investor 2,977 common shares as a commitment fee and an additional 2,632 shares as a commission to the broker.

The Note is due October 7, 2022. The Note provides for interest at the rate of 10% per annum, payable at maturity. The Note is convertible into shares of common stock at any time following the date of cash payment at the ~~investor~~Buyer’s option at a conversion price of $1.50 per share, subject to certain adjustments.

25The warrants are exercisable for three-years from October 7, 2021, at an exercise price of $1.90 per share, subject to certain adjustments, which exercise price may be paid on a cashless basis. The aggregate exercise price is $45,238.

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the Three and Nine Months Ended September 30, 2022

(Unaudited)

The Warrants are exercisable for six-years from October 7, 2021, at an exercise price of $1.90 per share, subject to certain adjustments, which exercise price may be paid on a cashless basis. The aggregate exercise amount per the warrant agreement is $45,238.

The Company incurred approximately $15,000 in debt issuance costs.

Due to ~~insufficient~~the lack of authorized shares, the embedded conversion option has been bifurcated and reflected as a derivative liability with an an initial fair value of $564,184 with $487,667 charged to derivative expense and $76,517 recorded as a debt discount.

The Company recorded a total debt discount of $131,250 including an original issue discount of $6,250, a discount related to issuance costs of $15,000, a discount related to the issuance of common stock of approximately $33,483, and a $76,517 discount related to the initial derivative value of the embedded conversion feature on the Note all based on the relative fair value of the instruments. The discounts are being amortized over the life of the convertible note.

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2023 and 2022

(unaudited)

On January 5, 2022, the Company defaulted on certain covenants contained in the October 7, 2021, convertible note and the interest rate reset to 16%.

On January 27, 2022, the exercise price of the note was adjusted to $0.78 based on a convertible note conversion at $0.78.

On May 12, 2022, the Company repaid $83,500 of principal on the note and repurchased 2,977 shares of common stock issued to the holder as an original commitment fee on the note for $1,000. The repurchase was recorded at cost as treasury stock on the accompanying ~~balance~~consolidated balance sheet. In addition, the Company repaid an additional $1131,~~571~~042 of principal and $8,~~428~~905 of interest on the note during the ~~three-month period~~year ended ~~September~~December 3031, 2022. The Company recorded approximately $8298,~~900~~000 gain on debt extinguishment related to the settlement of the derivative liability as a result of repayment of the note.

~~For~~On ~~the~~January ~~three months ended September 30~~10, ~~2022~~2023, the ~~Company~~exercise ~~repaid~~price ~~$19,471~~ of ~~principal and $476 of interest on~~ the note. ~~The~~was ~~Company~~adjusted ~~recorded approximately~~to $~~15,200~~0.56 ~~gain~~based on ~~debt extinguishment resulting from the settlement of the derivative as~~ a ~~result~~convertible ofnote ~~repayment~~conversion ofat ~~the note~~$0.56.

AsFor ofthe ~~September~~three ~~30,~~months ~~2022~~ended March 31, 232023,~~810~~ ~~warrants~~the ~~were~~Company ~~outstanding~~recognized ~~that~~approximately ~~were~~$700 ~~issued~~in ~~with~~interest expense related to the ~~October~~note. 7For the three months ended March 31, ~~2021~~2022, ~~convertible~~the ~~note~~Company atrecognized anapproximately ~~exercise~~$32,400 ~~price~~ related to the amortization of debt discounts and approximately $15,000 in interest expense related to the note.90 As of March 31, 2023, the debt discount on the note was fully amortized.

~~For~~As ~~the~~of ~~three~~March ~~and nine months ended September 30~~31, ~~2022~~2023, the Company ~~recognized~~has ~~approximately~~recorded $3316,~~100~~700 ~~and $98,200 related to the amortization~~ of ~~debt~~outstanding ~~discounts~~principal and approximately $1,500 ~~and~~of ~~$5,800~~accrued in interest ~~expense related to the note~~. ~~No interest expense or debt discount was recognized for the same period of 2021.~~

As of September 30, 2022, the Company has recorded $16,708 of outstanding principal and $2,200 of unamortized discount and issuance expenses. No interest on the note was due as of September 30, 2022.

Convertible Promissory Note – March 15, 2022

On March 15, 2022, the Company entered into a Securities Purchase Agreement (“SPA”) with an institutional investor pursuant to which the Company issued the investor a 10% Convertible Note in the principal amount of $250,000 for a purchase price of $200,000 reflecting a $50,000 original issue discount. The Company received total consideration of $180,000 after debt issuance costs of $20,000. In addition, the Company issued 2,500 shares of common stock as a commitment fee to the investor. The Company also issued 10,000 shares to the broker as a commission on the sale.

The Note provides for guaranteed interest at the rate of 10% per annum for the 12 months from and after the original issue date of the Note for an aggregate guaranteed interest of $25,000, all of which guaranteed interest shall be deemed earned as of the date of the note. The principal amount and the guaranteed interest shall be due and payable in seven equal monthly payments each, $39,285~~.71~~, ~~commencing~~ commencing on August 15, 2022, and continuing on the 15th day of each month until paid in full not later than March 15, 2023, the maturity date.

The Note is convertible into shares of common stock at any time following any event of default at the investor’s option at a conversion price of ninety percent (90%) per share of the lowest per-share trading price of the Company; stock during the ten trading day periods before the conversion, subject to certain adjustments.

The Company recorded a total debt discount of $250,000 including an original issue discount of $50,000, a discount related to issuance costs of $34,384, a discount related to the issuance of common stock of approximately $3,596, and a $162,020 discount related to the initial derivative value of the embedded conversion feature on the Note all based on the relative fair value of the instruments. The discounts are being amortized over the life of the convertible note.

~~For~~On ~~the three months ended~~ September 3016, 2022, the Company ~~repaid~~defaulted ~~$67,176~~on the repayment of ~~principal~~the note and ~~$11,396~~the of interest onrate ~~the~~reset ~~note~~to 18%. ~~The~~In addition, the Company ~~recorded~~recognized approximately $4232,~~600~~000 ~~gain on debt extinguishment resulting from the settlement~~ of ~~the~~additional ~~derivative~~interest asexpense arelated ~~result~~to ofdefault ~~repayment~~provisions ofcontained in the note.

For the three and nine months ended September 30, 2022, the Company recognized approximately $63,000 and $137,000 related to the amortization of debt discounts and approximately $25,000 in interest expense related to the note that was deemed earned as of the date of issuance.31

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~For the~~FOR ~~Three~~THE ~~and~~THREE ~~Nine~~MONTHS ~~Months~~ENDED ~~Ended~~MARCH ~~September 30~~31, 2023 and 2022

(~~Unaudited~~unaudited)

AtFor ~~September~~the 30year ended December 31, 2022, the Company ~~has~~repaid ~~recorded~~ $~~182~~97,~~800~~176 of ~~outstanding~~ principal and $1311,~~600~~396 of ~~accrued~~ interest ~~and~~on the note. The Company recorded approximately $~~113~~68,~~000~~600 gain on debt extinguishment resulting from the settlement of ~~unamortized discount~~the ~~and~~derivative ~~issuance~~as ~~expenses~~a result of repayments on the note.

On January 10, 2023, the holder of the March 15, 2022, convertible note converted $3,839 of principal and $1,661 of interest at $0.56 per share into 17,861 shares of common stock. (see note 7)

On January 23, 2023, the Company repaid $10,819 in principal and $4,191 in interest on the note. On February 1, 2023, the Company repaid $15,000 of outstanding principal on the note. On February 17, 2023, the Company repaid $32,500 of outstanding principal. On March 13, 2023, the Company repaid $30,000 of outstanding principal on the note.

The Company recognized approximately a $39,000 gain on extinguishment of debt for the three months ended March 31, 2023 related to the settlement of the derivative liability as a result of repayments made on the note.

For the three months ended March 31, 2023, the Company recognized approximately $50,000 related to the amortization of debt discounts and approximately $7,200 in interest expense related to the note. For the three months ended March 31, 2022, the Company recognized approximately $11,600 related to the amortization of debt discounts and approximately $25,000 in interest expense related to the note that was deemed earned as of the date of issuance. As of March 31, 2023, the debt discount on the note was fully amortized.

As of March 31, 2023, the Company has recorded approximately $114,000 of outstanding principal and $5,000 of accrued interest on the note.

Derivative Liabilities Pursuant to Convertible Notes and Warrants

In connection with the issuance of the unrelated party convertible notes (collectively referred to as “Notes”) and warrants (collectively referred to as “Warrants”), discussed above, the Company determined that the terms of certain Notes ~~contained~~and Warrants contain an embedded conversion options to be accounted for as derivative liabilities due to the holder having the potential to gain value upon conversion and provisions which includes events not within the control of the Company. Due to the fact that the number of shares of common stock ~~potentially~~that may be issuable for warrants and notes with variable conversion features may exceed the Company’s authorized share limit as of ~~September~~March 3031, ~~2022~~2023, the equity environment was tainted and all convertible debentures and warrants were included in the value of the derivative. Accordingly, for existing embedded conversion options and existing warrants that were not previously accounted for as derivatives, the Company reclassified $3,462,000 from additional paid-in capital to derivative liability on December 31, 2021. In accordance with ASC 815-40 –Derivatives and Hedging – Contracts in an Entity’s Own Stock, the embedded conversion options contained in the Notes and the Warrants were accounted for as derivative liabilities at the date of issuance or on the reclassification date and shall be adjusted to fair value through earnings at each reporting date. The fair value of the embedded conversion options and the warrants was determined using the Binomial Lattice valuation model. At the end of each period and on note conversion ~~date or~~ , repayment or on the warrant exercise date, the Company revalues the derivative liabilities resulting from the embedded option.

~~For~~During the ~~nine-month~~ period ended ~~September~~March 3031, ~~2022~~2023, in connection with the issuance of the Notes and ~~warrants~~Warrants, on the initial measurement dates, the fair values of the embedded conversion ~~option~~options and warrants of approximately $1687,~~422,~~000 was recorded as derivative liabilities of which $1265,~~314,~~000 was allocated as a debt discount and $~~108~~422,000 as derivative expense.

At the end of ~~the~~each reporting period, the Company revalued the embedded conversion option and warrants as derivative liabilities. In connection with the initial valuations and these revaluations, the Company recorded a gain from the initial and change in the derivative liabilities fair value of approximately $1717,~~534~~000 million for the ~~nine-month~~three ~~period~~months ended ~~September~~March 3031, ~~2022~~2023, including a $1.1 million gain for the change in the fair value of derivative liabilities for the period.

During the ~~nine~~three months ~~period~~ ended ~~September~~March 3031, ~~2022~~2023, the fair value of the derivative liabilities was estimated at issuance and at ~~September 30,~~the ~~2022~~March 31, 2023, using the Binomial Lattice valuation model with the following assumptions:

Schedule of Fair Value of Derivative ~~Liabilities~~liabilities Estimated Issuance and Valuation Mode

Dividend rate	—	%
Term (in years)	0.000 to 1.0710 year
Volatility	~~147~~178.2% to ~~317~~310.475	%
Risk-free interest rate	13.2836% to 4.2564	%

Other than the effect on the derivative valuation recognized in operations, there was no accounting effect to the ratchet adjustments of certain convertible notes to reduce the conversion price to $0.7856 in January ~~2022~~2023 since all of the embedded conversion options in the convertible notes were treated as derivatives which are reported at fair value.

~~Note 5 - Licensing Agreements~~32

License of DiLA2 Assets

On March 16, 2018, the Company entered into an exclusive sublicensing agreement for certain intellectual property rights to its DiLA2 delivery system. The agreement included an upfront payment of $200,000 and future additional consideration for sales and development milestones. The upfront fee was contingent upon the Company obtaining a third-party consent to the agreement within ninety days of execution. As of September 30, 2022, the Company had not obtained consent for the sublicense and has classified the upfront payment it had previously recorded as an accrued liability on its consolidated balance sheet.

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~For the~~FOR ~~Three~~THE ~~and~~THREE ~~Nine~~MONTHS ~~Months~~ENDED ~~Ended~~MARCH ~~September 30~~31, 2023 and 2022

(~~Unaudited~~unaudited)

Note 5 - Licensing Agreements

Les Laboratories Servier

As a result of the Asset Purchase Agreement that the Company entered into with Symplmed Pharmaceuticals LLC in June 2017, Symplmed assigned to the Company an Amended and Restated License and Commercialization Agreement with Les Laboratories Servier, pursuant to which the Company has the exclusive right to manufacture, have manufactured, develop, promote, market, distribute and sell Prestalia® in the U.S. (and its territories and possessions).

On January 4, 2021, the licensor terminated the licensing agreement with the Company for the commercialization of Prestalia®. As of March 31, 2023 and December 31, 2022, the Company had $24,500 recorded as a liability on the accompanying consolidated balance sheet for royalties due under the agreement.

No royalties were incurred for the three-month periods ended March 31, 2023, or 2022.

License of DiLA² Assets

On March 16, 2018, the Company entered into an exclusive sublicensing agreement for certain intellectual property rights to its DiLA2 delivery system. The agreement included an upfront payment of $200,000 and future additional consideration for sales and development milestones. The upfront fee was contingent upon the Company obtaining a third-party consent to the agreement within ninety days of execution. The Company has not obtained consent for the sublicense and has classified the upfront payment it had previously recorded as an accrued liability on its consolidated balance sheet.

Note 6 - Related Party Transactions

Due to Related Party

The Company and other related entities have had a commonality of ownership and/or management control, and as a result, the reported operating results and/or financial position of the Company could significantly differ from what would have been obtained if such entities were autonomous.

The Company had a Master Services Agreement (“MSA”) with Autotelic Inc., a related party that ~~was~~is partly owned by one of the Company’s former Board members and executive officers, namely Vuong Trieu, Ph.D., effective November 15, 2016. The ~~Master~~MSA ~~Services~~stated ~~Agreement~~that ~~terminated~~Autotelic inInc. would ~~2018~~provide ~~with~~business anfunctions ~~unpaid~~and ~~balance for~~services ~~previous~~to ~~years~~the ~~services~~Company ~~performed~~and ofallowed ~~approximately~~Autotelic ~~$4,000~~Inc. isto ~~included~~charge inthe ~~due~~Company tofor ~~related~~these ~~party~~expenses inpaid on ~~the~~its ~~accompanying~~behalf. ~~consolidated~~Dr. ~~balance sheets~~Trieu atresigned ~~September~~as ~~30,~~a ~~2022~~director of our company effective October 1, 2018. The Company and ~~December~~Autotelic Inc. agreed to terminate the MSA effective October 31, ~~2021~~2018.

InAn ~~addition,~~unpaid asbalance offor ~~September~~previous ~~30,~~years ~~2022,~~services ~~and~~performed ~~December~~under ~~31, 2021,~~ the ~~Company~~agreement ~~owed~~of ~~various officers and directors~~ approximately $14,000 ~~and $42,000, respectively for services rendered which~~ is included asin due to related party in on the accompanying consolidated balance ~~sheet~~sheets at March 31, 2023 and December 31, 2022.

In addition, as of March 31, 2023 and December 31, 2022 the Company owed various officers and directors approximately $21,000 and $26,000, respectively for services rendered which is included as due to related party on the accompanying consolidated balance sheet.

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2023 and 2022

(unaudited)

Note 7 - Stockholders’ Equity

Preferred Stock

Adhera has authorized 100,000 shares of preferred stock for issuance and has designated 1,000 shares as Series B Preferred Stock (“Series B Preferred”) and 90,000 shares as Series A Junior Participating Preferred Stock (“Series A Preferred”). AsNo ~~of December 31, 2021 and September 30, 2022, no~~ shares of Series A Preferred or Series B Preferred are outstanding. In March 2014, Adhera designated 1,200 shares as Series C Convertible Preferred Stock (“Series C Preferred”). In August 2015, Adhera designated 220 shares as Series D Convertible Preferred Stock (“Series D Preferred”). In April 2018, Adhera designated 3,500 shares of Series E Convertible Preferred Stock (“Series E Preferred”). In July 2018, Adhera designated 2,200 shares of Series F Convertible Preferred Stock (“Series F Preferred”). In December 2019, Adhera designated 6,000 shares of Series G Convertible Preferred Stock (“Series G Preferred”). The Company plans to file a certificate of elimination with respect to the Series A ~~Preferred~~ and Series B ~~Preferred~~stock and a certificate of decrease with respect to each of its Series C, D and F Preferred stock. As of ~~September~~March 3031, ~~2022~~2023, the Company ~~had~~has not filed the certificate of elimination. Each subsequent authorization ~~designated series~~ of ~~preferred~~Preferred ~~stock~~Stock has liquidation preference over the previous ~~series~~Series.

Series C Preferred

Each share of Series C Preferred has a stated value of $5,000 per share, has a $5,100 liquidation preference per share, has voting rights of ~~666~~33.6733 votes per Series C Preferred share, and is convertible into shares of common stock at a conversion price of $150.00 per share.

As of ~~September~~March ~~30, 2022, and December~~ 31, ~~2021~~2023, 100 shares of Series C Preferred stock were outstanding.

Series D Preferred

Each share of Series D Preferred has a stated value of $5,000 per share, has a liquidation preference of $300 per share, has voting rights of ~~1,250~~62.5 votes per Series D Preferred share and is convertible into shares of common stock at a conversion price of $80.00 per share. The Series D Preferred has a 5% stated dividend rate when, and if declared by the Board of Directors, is not redeemable and has voting rights on an as-converted basis.

As of ~~September~~March ~~30, 2022, and December~~ 31, ~~2021~~2023, 40 shares of Series D Preferred were outstanding.

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the Three and Nine Months Ended September 30, 2022

(Unaudited)

Series E Convertible Preferred Stock and Warrants

The Series E Preferred Stock has a stated value of $5,000 per share and accrues 8% dividends per annum that are payable in cash or stock at the Company’s discretion. The Series E Preferred has voting rights, dividend rights, liquidation preferences, conversion rights at the option of the holder and anti-dilution rights. Series E Preferred stock is convertible into shares of common stock at $10.00. Anti-dilution price protection on Series E Preferred stock expired on February 10, 2020. Warrants issued with Series E Convertible Preferred Stock have anti-dilution price protection, are exercisable for a period of five years, and contain customary exercise limitations.

On March 19, 2021, the exercise price of the Series E warrants was adjusted from $10.00 to $1.00 per share upon the conversion of $25,900 debt for 25,900 shares common stock. The Company recorded approximately $390,000 as a deemed dividend based upon the change in fair value of the Series E Preferred stock warrants using a binomial valuation model. The Company used a risk-free rate of 0.16%, volatility of 262.27%, and expected term of .41 to .43 years in calculating the fair value of the warrants.

As of May 17, 2021, the three-year anniversary of the closing of the Series E Preferred stock offering, all outstanding Series E Preferred stock were convertible by the Company into common stock.

On June 8, 2021, an investor converted 8 shares of Series E Preferred and accrued dividends of approximately $10,000 into 5,051 shares of common stock. In addition, the Company issued 2,679 shares of common stock to the investor for a cashless exercise of 3,750 warrants.

On July 30, 2021, an investor converted 50 shares of Series E Preferred stock with a state value of $250,000 into 25,000 shares of common stock.

On October 4, 2021, the Company issued 12,777 shares of common stock upon the conversion of 20 shares Series E Preferred stock including accrued dividends of $27,770.

On October 5, 2021, the Company issued 19,271 shares of common stock upon the conversion of 30 shares of Series E Preferred stock including accrued dividends of $42,707.

On October 8, 2021, the Company issued 2,571 shares of common stock upon the conversion of 4 shares of Series E Preferred stock including accrued dividends of $5,707.

On October 12, 2021, the Company issued 3,216 shares of common stock upon the conversion of 5 shares of Series E Preferred stock including accrued dividends of $7,156.

On November 23, 2021, the Company issued 9,665 shares of common stock upon the conversion of 15 shares of Series E Preferred stock including accrued dividends of $21,649.

On January 27, 2022, the exercise price of the Series E warrants was adjusted to $0.78 per share as a result of a convertible note exercise at $0.78 per share.

On May 17, 2022, the Company effected the conversion of 3,059 shares of Series E Preferred stock and accrued dividends of approximately $5.1 million into 2,035,306 shares of unregistered common stock at a conversion price of $10.00 per share in accordance with the conversion provisions of the certificate of designation.

AsOn ofJanuary ~~September 30~~10, ~~2022~~2023, the ~~Company~~exercise ~~had~~price aof ~~total~~the ofSeries ~~1,453,028~~E warrants ~~issued~~was ~~with~~adjusted ~~Series~~to E$0.56 ~~Preferred~~per ~~stock~~share ~~outstanding.~~as ~~The~~a ~~warrants~~result ~~expire in~~of ~~2023~~a ~~and~~convertible ~~have~~note an exercise at ~~price of~~ $0.7856 per share.

~~The Company had accrued dividends on the Series E Preferred stock of approximately $453,000 and $5.0 million, as of September 30, 2022, and December 31, 2021, respectively.~~34

As of September 30, 2022, and December 31, 2021, there were 267 and 3,326 Series E shares outstanding, respectively.

Series F Convertible Preferred Shares and Warrants

The Series F Preferred Stock has a stated value of $5,000 per share and accrues 8% dividends per annum that are payable in cash or stock at the Company’s discretion. The Series F Preferred has voting rights, dividend rights, liquidation preferences, conversion rights at the holders option and anti-dilution rights. Series F Preferred stock is convertible into shares of common stock at $10.00. Anti-dilution price protection on Series F Preferred stock expired on February 10, 2020. Warrants issued with Series F Convertible Preferred Stock have anti-dilution price protection, are exercisable for a period of five years, and contain customary exercise limitations.

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~For the~~FOR ~~Three~~THE ~~and~~THREE ~~Nine~~MONTHS ~~Months~~ENDED ~~Ended~~MARCH ~~September 30~~31, 2023 and 2022

(~~Unaudited~~unaudited)

As of March 31, 2023, the Company had a total of 1,453,028 warrants issued with Series E Preferred stock outstanding. The warrants expire on May 17, 2023.

The Company had accrued dividends on the Series E Preferred stock of approximately $525,000 as of March 31, 2023.

At March 31, 2023, there were 267 Series E shares outstanding.

Series F Convertible Preferred Shares and Warrants

The Series F Preferred Stock has a stated value of $5,000 per share and accrues 8% dividends per annum that are payable in cash or stock at the Company’s discretion. The Series F Preferred has voting rights, dividend rights, liquidation preferences, conversion rights at the holders option and anti-dilution rights. Series F Preferred stock is convertible into shares of common stock at $10.00 Anti-dilution price protection on Series F Preferred stock expired on February 10, 2020. Warrants issued with Series F Convertible Preferred Stock have anti-dilution price protection, are exercisable for a period of five years, and contain customary exercise limitations.

On March 19, 2021, the exercise price of the Series F warrants was adjusted from $10.00 to $1.00 upon the conversion of $25,900 of debt for 25,900 shares of common stock. The Company recorded approximately $31,000 as a deemed dividend based upon the change in fair value of the Series F Preferred stock using a binomial valuation model. The Company used a risk-free rate of 0.16%, volatility of 262.27%, and an expected term of .46 to .53 years in calculating the fair value of the warrants.

On October 15, 2021, the Company issued 1,853 shares of common stock upon the conversion of 3 shares of Series F Preferred stock and including total accrued dividends of $3,521.

As of November 9, 2021, three-year anniversary of the closing of the Series F Preferred stock offering, all outstanding Series F Preferred stock and accrued dividends became convertible by the Company into common stock upon written notification being provided by the Company to stockholders.

On January 27, 2022, the exercise price of the Series F warrants was adjusted to $0.78 per share as a result of a convertible note exercise at $0.78 per share.

On May 17, 2022, the Company effected the conversion of 358 shares of Series F Preferred stock and accrued dividends of approximately $~~541~~543,000 into 233,127 shares of unregistered common stock at a conversion rate of $10.00 per share in accordance with the conversion provisions of the certificate of designation.

AsOn January ~~of September 30~~10, ~~2022~~2023, the ~~Company~~exercise ~~had~~price ~~a total~~ of ~~154,425~~the Series F ~~Preferred stock~~ warrants ~~outstanding~~was adjusted to $0.56 ~~The~~per ~~warrants~~share ~~expire~~as ina ~~2023~~result of a convertible note exercise at $0. 56 per share.

~~The~~As ~~Company~~of ~~had~~March ~~accrued~~31, ~~dividends~~2023, on the ~~Series~~Company Fhad ~~Preferred~~a ~~stock~~total of ~~approximately $448~~154,~~000,~~425 asSeries ofF ~~December~~Preferred ~~31,~~stock ~~2021~~warrants outstanding. NoThe ~~dividends~~warrants ~~were~~expire ~~accrued as~~on ~~of September 30~~November 9, ~~2022~~2023.

At ~~September~~March 3031, ~~2022~~2023 and December 31, ~~2021~~2022, there were ~~zero~~no ~~shares and 358~~ Series F Preferred shares outstanding~~, respectively~~.

Series G Convertible Preferred Shares

The Series G Preferred Stock has a stated value of $5,000 per share and accrues 8% dividends per annum that are payable in cash or stock at the Company’s discretion. The Series G Preferred has voting rights, dividend rights, liquidation preferences, conversion rights and anti-dilution rights. Series G Preferred stock is convertible into shares of common stock at $10.00.

As of ~~September~~March 3031, 2023, and December 31, 2022, no Series G Preferred Stock has been issued by the Company.

Common Stock

On ~~June~~January 827, ~~2021~~2022, anthe ~~investor~~Company ~~converted~~issued 812,721 shares of ~~Series~~common Estock ~~Preferred~~upon ~~and~~the ~~accrued~~conversion ~~dividends~~of $9,500 principal and $422 of interest on the June 2021 convertible note that were valued at fair value based on the quoted trading prices on the conversion dates aggregating approximately $28,000 resulting in a loss on debt extinguishment of $1018,000. ~~into~~In 5addition,~~051~~ ~~shares~~derivative fair value of $23,000 relating to the portion ~~common~~of ~~stock~~the Note converted was settled resulting in a gain on extinguishment of approximately $23,000. The net gain on extinguishment was approximately $5,000.

~~On June 8, 2021, the Company issued 2,679 shares of common stock to the investor for a cashless exercise of 3,750 warrants.~~35

On July 30, 2021, and investor converted 50 shares of Series E Preferred stock with a stated value of $250,000 into 25,000 shares of common stock.

On August 11, 2021, the Company issued 5,000 shares of common stock to a convertible note investor as a commitment fee which was valued at its relative fair value of $56,464.

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~For the~~FOR ~~Three~~THE ~~and~~THREE ~~Nine~~MONTHS ~~Months~~ENDED ~~Ended~~MARCH ~~September 30~~31, 2023 and 2022

(~~Unaudited~~unaudited)

On August 18, 2021, the Company issued 5,000 shares of common stock to a convertible note investor as a commitment fee which was valued at its relative fair value of $62,220.

On September 22, 2021, the Company issued 15,008 shares of common stock to an investment banker for commissions due under a banking agreement. The shares were recorded at their relative fair value of approximately $39,290.

On October 4, 2021, the Company issued 12,777 shares of common stock upon the conversion of 20 shares Series E Preferred stock including accrued dividends of $27,770.

On October 4, 2021, the Company issued 2,977 shares of common stock to a convertible note investor as a commitment fee which was valued at its relative fair value of $10,859.

On October 5, 2021, the Company issued 19,271 shares of common stock upon the conversion of 30 shares of Series E Preferred stock including accrued dividends of $42,707.

On October 8, 2021, the Company issued 2,571 shares of common stock upon the conversion of 4 shares of Series E Preferred stock including accrued dividends of $5,707.

On October 8, 2021, the Company issued 2,977 shares of common stock to a convertible note investor as a commitment fee which was valued at its relative fair value of $12,233.

On October 12, 2021, the Company issued 3,216 shares of common stock upon the conversion of 5 shares of Series E Preferred stock including accrued dividends of $7,156.

On October 15, 2021, the Company issued 1,853 shares of common stock upon the conversion of 3 shares of Series F Preferred stock including accrued dividends of $3,521.

On November 4, 2021, the Company issued 7,662 shares of common stock upon a cashless exercise of 250,000 warrants issued with the April 2021 Convertible Note.

On November 23, 2021, the Company issued 9,665 shares of common stock upon the conversion of 15 shares of Series E Preferred stock including accrued dividends of $21,649.

On December 6, 2021, the Company issued 4,805 shares of common stock to an investment banker for commissions due under a banking agreement. The shares were recorded at their relative fair value of approximately $18,745.

During the twelve-month period ending December 31, 2021, the company issued 168,301 million common shares upon the conversion of $98,141 principal and $70,160 of accrued interest on the February 2020 convertible note. The common shares issued upon conversions of the note for the period ended December 31, 2021 were valued at fair value based on the quoted trading prices on the conversion dates aggregating approximately $554,000 resulting in a loss on debt extinguishment of approximately $386,000.

On January 27, 2022, the Company issued 12,721 shares of common stock upon the conversion of $9,500 principal and $422 of interest on the June 2021 convertible note that were valued at fair value based on the quoted trading prices on the conversion dates aggregating approximately $28,000 resulting in a loss on debt extinguishment of $18,000. In addition, derivative fair value of $23,000 relating to the portion of the Note converted was settled resulting in a gain on extinguishment of approximately $23,000. The net gain on extinguishment was approximately $5,000.

On March 15, 2022, the Company issued 2,500 shares of common stock to a convertible note investor as a commitment fee which was valued at its relative fair value of $3,596.

On March 15, 2022, the Company issued 10,000 shares of common stock to an investment banker for commissions due under a banking agreement for issuance of a convertible note. The shares were recorded at their fair value of approximately $14,384.

On May 11, 2022, the Company issued 19,231 shares of common stock to an investment banker for commissions due under a banking agreement for issuance of a convertible note. The shares were recorded at a fair value of approximately $11,820.

On May 17, 2022, the Company effected the conversion of 358 shares of Series F Preferred stock and accrued dividends of approximately $541,000 into 233,127 shares of unregistered common stock at a conversion rate price $10.00 per share in accordance with the conversion provisions in the certificate of designation.

On January 10, 2023, the Company issued 17,861 shares of common stock for the conversion of $3,839 of principal and $6,161 of interest on the March 2022 convertible note. The shares were issued at a conversion price of $0.56 per share. The Company recognized a $5,500 loss on extinguishment of the debt. (see note 4).

Treasury Stock

On May 12, 2022, the Company repurchased 5,954 shares of common stock issued to the holders of outstanding notes as an original commitment fee on the notes for $2,000. The repurchase was recorded at cost as treasury stock on the accompanying consolidated balance sheet.

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the Three and Nine Months Ended September 30, 2022

(Unaudited)

Warrants

As of ~~September~~March 3031, ~~2022~~2023, there were 59,~~192~~370,~~652~~490 common stock warrants outstanding, with a weighted average exercise price of $0.8843 per share, ~~with~~that have annual expirations as follows:

Schedule of ~~Stockholders~~Stockholder’ Equity Note, Warrants or Rights

	Shares		2023		2024		2025		2026		2027
Warrants issued with:	Shares		2023		2024		2025		2026		2027 and After
Series E Preferred Stock		1,~~520~~453,~~280~~028		1,~~520~~453,~~280~~028		-		-		-		-
Series F Preferred Stock		154,425		154,425		-		-		-		-
Bridge Loan		1,111,112		-		-		-		-		1,111,112
Bridge Loans		1,269,649		-		-		-		-		2,486,986
Convertible Notes (CVN)		25,~~389~~191,~~394~~358		-		~~145~~183,~~056~~359		364,~~777~~526,~~552~~562		~~345~~481,~~600~~437		-
Other		171,~~441~~302,030		1367,756		116,~~179~~775		~~3,201~~162		-		-
Total Warrants		59,~~192~~370,~~652~~490		1,~~674~~675,~~718~~209		3200,~~236,550~~134		14,~~899~~526,~~917~~724		~~345~~481,~~600~~437		12,~~111~~486,~~112~~986

The above table includes 9,305,429 price adjustable warrants including warrants with variable conversion rates and full ratchet protection.

	Shares
Warrants as of December 31, 2021		3,731,263
Warrants as of December 31, 2022		6,785,914
Issued as a result of price adjustments on convertible notes		~~133~~238,~~284~~141
Variable quantity of warrants related to the February 2020 note		~~216~~1,~~993~~129,098
Warrants issued with 2022 Bridge Note		1,111,112
Warrants issued with 2023 Bridge Notes		1,217,337
Warrants as of September 30, 2022		5,192,652
Warrants as of March 31, 2023		9,370,490

~~Warrants outstanding as of September 30, 2022, included 5,127,591 price adjustable warrants.~~36

~~The intrinsic~~ADHERA ~~value of 5~~THERAPEUTICS,~~192,652~~ ~~warrants as of September 30, 2022, was approximately $2~~INC.5 ~~million.~~AND SUBSIDIARIES

~~As discussed~~NOTES inTO ~~Note~~CONSOLIDATED 2FINANCIAL above, the Company has issued convertible notes and warrants with variable conversion provisions. The conversion terms of the convertible notes are variable based on certain factors, such as the future price of the Company’s common stock and various default provisions related to the payment of the notes in Company stock. The number of shares of common stock to be issued under the convertible notes and warrants is based on the future price of the Company’s common stock. The number of shares of common stock potentially issuable upon conversion of the promissory notes are therefore, indeterminate. Due to the fact that the number of shares of common stock potentially issuable exceed the Company’s authorized share limit as of September 30, 2022, the equity environment was tainted and all convertible debentures and warrants were included in the value of the derivative as of that date. Pursuant to ASC 815-15 Embedded Derivatives, the fair values of the convertible notes were recorded as derivative liabilities. On September 30, 2022, the Company evaluated all outstanding warrants and due to reasons discussed above, all warrants outstanding were considered tainted and were therefore, accounted for as derivative liabilities.STATEMENTS

~~Other than~~FOR ~~the~~THE ~~effect~~THREE onMONTHS ~~the~~ENDED ~~derivative~~MARCH ~~valuation recognized in operations~~31, ~~there~~2023 ~~was~~and ~~no accounting effect to the ratchet adjustments of certain warrants to reduce the conversion price to $0.78 in January~~ 2022 ~~since all of the embedded conversion options in the warrants were treated as derivatives.~~

~~NOTE 8 - Stock Incentive Plans~~(unaudited)

The intrinsic value of outstanding warrants as of March 31, 2023, was approximately $1.6 million.

As discussed in Note 2 above, the Company has issued convertible notes and warrants with variable conversion provisions. The conversion terms of the convertible notes are variable based on certain factors, such as the future price of the Company’s common stock and various default provisions related to the payment of the notes in Company stock. The number of shares of common stock to be issued under the convertible notes and warrants is based on the future price of the Company’s common stock. The number of shares of common stock issuable upon conversion of the convertible notes is therefore, indeterminate. Due to the fact that the number of shares of common stock are indeterminable, the equity environment was tainted and all convertible debentures and warrants were included in the value of the derivative as of that date. Pursuant to ASC 815-15 Embedded Derivatives, the fair values of the warrants were recorded as derivative liabilities. On March 31, 2023, the Company evaluated all outstanding warrants to determine whether these instruments are tainted and, due to reasons discussed above, all warrants outstanding were considered tainted and were therefore, accounted for as derivative liabilities.

Other than the effect on the derivative valuation recognized in operations, there was no accounting effect to the ratchet adjustments of certain warrants to reduce the conversion price to $0.56 in January 2023 since all of the embedded conversion options in the warrants were treated as derivatives.

Note 8 - Stock Incentive Plans

Stock Options

The following table summarizes stock option activity for the ~~nine-month~~three ~~period~~months ended ~~September~~March 3031, ~~2022~~2023:

	Options Outstanding
	Shares			Weighted Average Exercise Price
Outstanding, December 31, 2021		19,203		$	19.40
Outstanding, December 31, 2022		19,000		$	19.60
Options expired / forfeited		~~(203~~-	)	$	~~34.00~~-
Outstanding, September 30, 2022		19,000			19.60
Outstanding, March 31, 2023		19,000		$	19.60
Exercisable, September 30, 2022		19,000		$	19.60
Exercisable, March 31, 2023		19,000		$	19.60

No stock options were granted during the ~~nine-month~~three ~~period~~months ended ~~September~~March 3031, ~~2022~~2023.

The following table summarizes additional information on the Company’s stock options outstanding at ~~September~~March 3031, ~~2022~~2023:

	Options Outstanding						Options Exercisable
Exercise Price	Number Outstanding		Weighted- Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
19.60		19,000		0.5909	$	19.60		19,000	$	19.60
Totals		19,000		0.5909	$	19.60		19,000	$	19.60

32As of March 31, 2023, the Company had no unrecognized compensation expense related to unvested stock options. Total expense related to stock options was zero for the three months ended March 31, 2023.

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~For the~~FOR ~~Three~~THE ~~and~~THREE ~~Nine~~MONTHS ~~Months~~ENDED ~~Ended~~MARCH ~~September 30~~31, 2023 and 2022

(~~Unaudited~~unaudited)

As of ~~September~~March 3031, ~~2022~~2023, the ~~Company~~intrinsic ~~had~~value noof ~~unrecognized~~options ~~compensation~~outstanding ~~expense~~or ~~related~~exercisable towas ~~unvested~~zero. ~~stock~~There were no options. Nooutstanding ~~stock~~with ~~based~~an ~~compensation~~exercise ~~expenses~~price ~~was~~less ~~recognized~~than ~~for~~$0.58, the ~~three~~per orshare ~~nine-month~~closing ~~periods~~market ~~ended~~price ~~September~~of ~~30,~~our ~~2022~~common orstock ~~2021~~at that date.

AsNote of9 ~~September~~- ~~30,~~Commitments ~~2022,~~and ~~the intrinsic value of options outstanding or exercisable was zero there were no options outstanding with an exercise price less than the closing market price of our common stock at that date.~~Contingencies

NOTE 9 - Commitments and Contingencies

Litigation

Because of the nature of the Company’s business, it is subject to claims and/or threatened legal actions, which arise out of the normal course of business. As of the date of this filing, the Company is not aware of any pending lawsuits against it, its officers or directors.

Leases

The Company does not own or lease any real property or facilities that are material to its current business operations. If the Company continues its business operations, the Company may seek to lease facilities in order to support its operational and administrative needs.

Licensing Agreement – MLR 1019

On July 28, 2021, the Company and Melior II entered into an exclusive license agreement for the development, commercialization and exclusive license of MLR-1019. MLR-1019 is being developed as a new class of therapeutic for Parkinson’s disease (PD) and is, to the best of the Company’s knowledge, the only drug candidate today to address both movement and non-movement aspects of PD. Under the Agreement, the Company was granted an exclusive license to use Melior II’s Patents and know-how to develop products in consideration for cash payments up to approximately $21.8 million upon meeting certain performance milestones, as well as a royalty of 5% of gross sales.

The license agreement terminates upon the last expiration of the patents licensed by the Company, which is presently 2038 subject to any potential extensions and renewals of any of such patents. If the Company fails to have its common stock listed on Nasdaq or the NYSE (an “Uplisting Event”) within 12 months after the Company receives a Clinical Trial Authorization from the European Medicines Agency, then the Company’s commercial license and rights for using Melior II’s data shall terminate. Additionally, if the Company has completed the necessary steps to effect an Uplisting Event, the Company will have the option to purchase all rights held by Melior II on the MLR-1019 licensed products in consideration for 10% of the outstanding shares of the Company’s common stock (immediately post Uplisting Event) and 2.5% royalty of future gross product sales.

As of ~~September~~March 3031, ~~2022~~2023, no performance milestones requiring cash consideration had been met under the agreement.

33Licensing Agreement – MLR 1023

On August 20, 2021, we as licensee entered into the exclusive license agreement regarding the development and commercialization of Melior’s MLR-1023 (the “MLR-1023 Agreement”) with Melior Pharmaceuticals I, Inc. (“MP1”). We refer to MP2 and MP1 as “MP” or “Melior”. This second license is for the development and commercialization of MLR-1023, which is being developed as a novel therapeutic for Type 1 diabetes.

Under the original terms of the MLR-1023 Agreement, if the Company failed to raise $4.0 million within 120 days of the effective date of the agreement then the MLR-1023 Agreement would immediately terminate unless, by 120 days Adhera was in the process of completing transactions to complete the fundraising then an additional 30 days would be provided to allow for the completion of the raise (the “Raise Requirement”).

On November 17, 2021, Melior I extended the Company’s timeline from 120 days to 180 days from the effective of the MLR-1023 Agreement for the Raise Requirement, by 180 days Adhera is in the process of completing transactions to complete the fundraising then an additional 30 days shall be provided to allow for the completion of required fundraising.

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~For the~~FOR ~~Three~~THE ~~and~~THREE ~~Nine~~MONTHS ~~Months~~ENDED ~~Ended~~MARCH ~~September 30~~31, 2023 and 2022

(~~Unaudited~~unaudited)

~~Licensing~~On ~~Agreement~~February –16, ~~MLR~~2022, an addendum to the MLR-1023 Agreement dated August 4, 2021 (the “First Addendum”), was executed by the Company and Melior, which extended the Raise Requirement to June 16, 2022.

On ~~August~~July 2420, ~~2021~~2022, the Company asand ~~licensee~~Melior entered into anthe ~~exclusive~~Second ~~license~~Addendum ~~agreement~~to the License Agreement (the “Second Addendum”). In accordance with ~~Melior~~the ISecond ~~for~~Addendum and subject to the ~~development~~terms and conditions therein, ~~commercialization~~the Raise Requirement was extended to February ~~and~~1, ~~exclusive~~2023, ~~license~~in ofexchange ~~Melior~~for ~~I’s~~a ~~MLR-1023~~$136,921 licensing payment that was made by the Company on July 28, 2022. ~~MLR-1023~~In isaddition, ~~being~~the ~~developed~~Company aswas required to hire and retain a ~~novel~~Chief ~~therapeutic~~Scientific ~~for~~Officer, ~~Type~~and 1raise ~~diabetes~~an additional $500,000 in capital in addition to other requirements set forth in the Second Addendum and MLR-1023 Agreement.

~~Under~~As ~~the~~of ~~Agreement~~February 1, 2023, the Company ~~was~~had ~~granted~~not anraised ~~exclusive~~the ~~license~~additional to$500,000 ~~use~~of capital, commenced API manufacturing, nor completed the ~~Melior~~Raise Requirement. ~~I’s~~In ~~Patents~~March ~~and~~2023, ~~know-how~~the Company obtained a verbal agreement with Melior to ~~develop~~extend ~~products~~the interms ~~consideration~~of the MLR-1023 Agreement until such ~~for~~time ~~cash~~that ~~payments~~the upmilestones tohave ~~approximately~~been ~~$21.8~~met ~~million~~and ~~upon~~the ~~meeting~~Company ~~certain~~pays ~~performance~~outstanding ~~milestones,~~patent asmaintenance ~~well~~costs. asHowever, aMelior ~~tiered~~may ~~royalty~~terminate the license of 8MLR-~~12%~~ 1023 at any time due to non-performance of ~~gross~~continuing ~~sales~~license obligations with a 60-day required notice to cure non-performance.

~~Under~~On ~~the~~February ~~original~~16, ~~terms~~2022, ofan ~~the~~addendum ~~agreement~~to if the ~~Company~~MLR-1023 ~~failed~~Agreement todated ~~raise~~August $4.0, ~~million~~2021 ~~dollars~~(the ~~within~~“First ~~120~~Addendum”), ~~days~~was ofexecuted ~~the~~by ~~Effective Date of~~ the ~~agreement~~Company ~~then~~and ~~the~~Melior, ~~License~~which ~~would~~extended ~~immediately~~the ~~terminate~~requirement ~~unless,~~ by ~~120 Days Adhera was in~~ the ~~process~~Company ofto ~~completing~~raise ~~transactions~~$4 tomillion ~~complete~~ (the ~~fundraising~~“Raise ~~then~~Requirement”) ~~an additional 30 Days would be provided~~ to ~~allow~~June ~~for the completion of the raise~~16, 2022.

On ~~October~~July 2018, ~~2021~~2022, the Company ~~expanded~~and Melior entered into the ~~exclusive~~Second ~~licensing~~Addendum ~~agreement~~to the License Agreement (the “Second Addendum”). In accordance with ~~Melior~~the ISecond Addendum and subject to ~~include~~the ~~two~~terms ~~additional~~and ~~clinical~~conditions ~~indications~~therein, the Raise Requirement was extended to February 1, 2023, in exchange for ~~Non-Alcoholic~~a ~~Steatohepatitis~~$136,921 ~~(NASH)~~licensing payment that was made by the Company on July 28, 2022. In addition, the Company was required to hire and ~~pulmonary~~retain ~~inflammation~~a Chief Scientific Officer, and raise an additional $500,000 in capital in addition to other requirements set forth in the Second Addendum and MLR-1023 Agreement.

OnAs ~~November~~of 17February 1, ~~2021~~2023, ~~Melior~~the ICompany ~~extended~~had not raised the ~~Company’s~~additional ~~timeline~~$500,000 ~~from~~of ~~120~~capital, ~~days~~commenced toAPI ~~180~~manufacturing, ~~days~~nor ~~from~~completed the ~~effective~~Raise Requirement. ofIn March 2023, the Company obtained a verbal agreement ~~for~~with ~~the Company~~Melior to ~~raise~~extend ~~$4.0~~the ~~million~~terms ~~dollars~~of ~~unless,~~the byMLR-1023 ~~180~~Agreement ~~Days~~until ~~Adhera~~such time isthat inthe milestones have been met and the ~~process~~Company ofpays ~~completing~~outstanding ~~transactions~~patent tomaintenance ~~complete~~costs. However, Melior may terminate the ~~fundraising~~license ~~then~~of anMLR-1023 ~~additional~~at 30any ~~Days~~time ~~shall~~due beto ~~provided~~non-performance toof ~~allow~~continuing ~~for~~license ~~the~~obligations ~~completion~~with ofa 60-day required ~~fundraising~~notice to cure non-performance.

OnAs ~~February~~of ~~16,~~March ~~2022~~31, ~~an addendum to the licensing agreement dated August 4~~2023, ~~2021,~~no ~~was~~performance ~~executed~~milestones byrequiring ~~the~~cash ~~Company~~consideration ~~and~~had ~~Melior~~been I,met ~~extending~~under the ~~requirement~~ ~~by the Company to raise $4~~agreement.~~0 million dollars to June 16, 2022.~~

OnNote ~~July~~10 ~~20, 2022, the Company entered into an addendum to the License Agreement for MLR~~-~~1023~~ ~~with~~Subsequent Melior I pursuant to which Melior I extended the license to February 1, 2023, in exchange for a $136,921 licensing payment. In addition, the Company was required to hire and retain a Chief Scientific Officer, and raise an additional $500,000 in capital in addition to other requirements set forth in the addendum and the License Agreement.Events

AsConversion of ~~September~~Principal ~~30,~~on ~~2022,~~Convertible ~~no performance milestones have been met under the agreement.~~Note

~~NOTE~~On April 14, 2023, the holder of the March 15, 2022, convertible note converted $10,000 –of principal ~~Subsequent~~of ~~Events~~interest at $0.28 per share into 35,716 shares of common stock.

~~Convertible~~On ~~Note~~April ~~Default(s)~~28, 2023, the holder of the March 15, 2022, convertible note converted $21,314 of principal and $6,586 of interest at $0.18 per share into 155,000 shares of common stock.

On ~~October~~ 4May 10, ~~2022~~2023, the ~~Company~~holder ~~defaulted~~of on the ~~final~~March ~~payment on the October 4~~15, ~~2021~~2022, convertible note. Asconverted $6,001 aof ~~result~~principal and $489 of ~~the~~interest ~~default,~~at ~~the~~$0.054 ~~interest~~per ~~rate on~~share ~~the~~into ~~note~~120,000 ~~reset~~shares toof ~~16%~~common stock.

OnApril ~~October 7~~28, ~~2022, the Company defaulted on the final payment on the October 7, 2021, convertible note. As a result of the default, the interest rate on the note reset to 16%.~~2023

On ~~October~~April 1528, ~~2022~~2023, the Company ~~defaulted~~entered oninto ~~the~~a ~~March~~Securities ~~15,~~Purchase ~~2022~~Agreement ~~note.~~with Astwo aaffiliated ~~result~~accredited ofinvestors ~~the~~pursuant ~~default~~to which the Company ~~interest~~issued ~~rate~~and onsold the ~~note~~investors ~~reset~~a ~~to 18~~non-convertible Original Issue 30% ~~calculated~~Discount ~~based~~Senior onSecured Promissory Note in the principal amount of $285,714 and 452,964 Common Stock Purchase Warrants for a ~~360-day~~total ~~year~~purchase price of $200,000. The Company received total consideration of $200,000.

3439

ADHERA THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2023 and 2022

(unaudited)

The Company also agreed to increase the principal amount of prior Original Issue Discount Promissory Notes issued to the investor in May 2022 and January 2023 by 30% as a loan inducement fee. The principal increases totaled $461,904.

All of the Warrants issued with promissory notes listed above are exercisable for a 66-month period (five years and six months) at an exercise price of $0.82 per share, subject to certain adjustments.

The Company will record a debt discount related to the original issue discount and issuance costs for each note and will evaluate the note terms for derivative accounting treatment.

Stock Option Expirations

On May 2, 2023, 19,000 stock options expired. As a result, the Company has no stock options currently outstanding.

Default on 2022 Term Loan

On May 11, 2023, the Company defaulted on the 2022 Term Loan and the interest rate reset to 15%.

Warrant Expirations

On May 17, 2023, 1,453,028 warrants issued with the Series E Preferred stock and 67,252 other warrants expired.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

This Quarterly Report on Form 10-Q includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect management’s current views with respect to future events and financial performance including meeting our obligations under the Melior I and Melior II license agreements and our liquidity. The following discussion should be read in conjunction with the financial statements and related notes and the Risk Factors contained in our Annual Report on Form 10-K, for the year ended December 31, ~~2021~~2022, as filed with the Securities and Exchange Commission (“SEC”) on ~~April~~March 1531, ~~2022~~2023. Forward-looking statements are projections in respect of future events or financial performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other comparable terminology.

Forward-looking statements are inherently subject to risks and uncertainties, many of which we cannot predict with accuracy and some of which we might not even anticipate. Although we believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, we can give no assurance that such expectations will be achieved. Future events and actual results, financial and otherwise, may differ materially from the results discussed in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements after the date of this Quarterly Report on Form 10-Q or to conform them to actual results, new information, future events or otherwise, except as otherwise required by securities and other applicable laws.

The following factors, among others, could cause our or our industry’s future results to differ materially from historical results or those anticipated:

● our ability to obtain additional funding for our company, whether pursuant to a capital raising transaction arising from the sale of our securities, a strategic transaction or otherwise; ● our ability to satisfy our disclosure obligations under the Securities Exchange Act of 1934, as amended, and to maintain the registration of our common stock thereunder; ● our ability to attract and retain qualified officers, directors, employees and consultants as necessary; ● the inability to comply with or obtain waivers or extensions under our current license agreements which ~~expire~~Melior onI ~~February~~and 1II, ~~2023,~~ in which case we may be forced to suspend or terminate certain of our research and development programs; ● the cost of our research and development programs may be higher than expected, and there is no assurance that such efforts will be successful in a timely manner or at all; and ● failure to meet our financial obligations under outstanding loans and other financing documents.

These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled “Risk Factors” set forth in our Annual Report on Form 10-K, any of which may cause our company’s or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. These risks may cause our or our industry’s actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance expressed or implied by these forward-looking statements.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity or performance. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of these forward-looking statements. We are under no duty to update any forward-looking statements after the date of this report to conform these statements to actual results.

As used in this quarterly report and unless otherwise indicated, the terms “we,” “us,” “our” or the “Company” refer to Adhera Therapeutics, Inc., a Delaware corporation. and its wholly-owned subsidiaries, MDRNA Research, Inc., Cequent Pharmaceuticals, Inc., Atossa Healthcare, Inc., and IthenaPharma, Inc. Unless otherwise specified, all amounts are expressed in United States dollars. Our common stock is currently quoted on the OTCQB, under the symbol “ATRX.”

Corporate Overview

Nature of Business

We are an emerging specialty biotech company ~~that,~~with toa ~~the~~focus ~~extent that resources and opportunities become available, is focused~~ on drug development and commercialization of “small molecule” drugs to treat Parkinson’s disease (PD) and Type 1 diabetes. Companies operating in the drug development and biotech sectors typically in-license early-stage inventions or pre-clinical (stage) compounds from universities and other companies and apply their own drug discovery and development expertise and resources to further these drug candidates towards regulatory approval by the Food and Drug Administration (FDA), and potentially other regulatory bodies overseas. The ultimate objectives are to secure regulatory authorizations in the USA and territories internationally, and to generate revenues from marketing activities. Drug candidates may also be licensed (out) to pharmaceutical companies prior to obtaining final regulatory approvals and marketing authorizations for valuable consideration, including upfront payments, milestone payments and royalties.

On July 28, 2021, we as licensee and Melior II as licensor entered into an exclusive license agreement for the development, commercialization and exclusive license of MLR-1019. MLR-1019 is being developed as a new class of therapeutic for Parkinson’s disease (PD) and is, to the best of our knowledge, the only drug candidate today to address both movement and non-movement aspects of PD. Under the Agreement, we were granted an exclusive license to use the Melior II Patents and know-how to develop products in consideration for cash payments upon meeting certain performance milestones as well as a royalty of 5% of gross sales.42

OnWe ~~August~~utilize ~~24,~~a ~~2021~~“virtual” drug development model, wealso asprevalent ~~licensee~~in ~~entered~~this ~~into~~industry ansector. ~~exclusive~~In ~~license~~this ~~agreement~~model, ~~with~~Contract ~~Melior~~Research IOrganizations (CROs) ~~for~~are ~~the~~typically ~~development,~~employed ~~commercialization~~to undertake certain drug discovery and ~~exclusive~~ ~~license~~development ofservices ~~MLR-1023~~on asthe aCompany’s ~~novel~~behalf ~~therapeutic~~and ~~for~~under ~~Type~~the Company’s 1direct ~~diabetes~~supervision.

On ~~October~~July 2028, 2021, we as licensee ~~expanded~~and MP2 entered into an exclusive license agreement for the development and commercialization of MLR-~~1023~~1019. MLR-1019 ~~licensing~~is ~~agreement~~being ~~with~~developed ~~Melior~~as ~~Pharmaceuticals~~a I,new ~~Inc.~~class of therapeutic for PD and is, to ~~include~~the ~~two~~best ~~additional~~of our knowledge, the only drug candidate today ~~clinical~~to ~~indications~~address ~~for~~both ~~Non~~movement and non-~~Alcoholic~~movement ~~Steatohepatitis~~aspects ~~(NASH)~~of PD. Under the Agreement, we were granted an exclusive license to use MP’s patents and ~~pulmonary~~know-how ~~inflammation~~related to MLR-1019 to develop products in consideration for cash payments upon meeting certain performance milestones as well as a royalty of 5% of gross sales.

On ~~July~~August 20, ~~2022~~2021, ~~the~~we ~~Company~~as licensee entered into an ~~addendum~~exclusive tolicense agreement regarding the ~~License~~development ~~Agreement~~and ~~for~~commercialization of Melior’s MLR-1023 ~~with~~(the ~~Melior~~“MLR-1023 IAgreement”) ~~pursuant~~with ~~to which~~ Melior Pharmaceuticals I, ~~extended the~~Inc. ~~license~~(“MP1”). toIn ~~February~~this 110-Q Report, ~~2023~~we inrefer to ~~exchange~~MP2 ~~for~~and aMP1 ~~$136,921~~as ~~licensing~~“MP” ~~payment~~or “Melior”. InThis ~~addition,~~second ~~the~~license ~~Company~~ is ~~required~~for tothe ~~hire~~development and ~~retain a~~commercialization ~~Chief~~of ~~Scientific Officer~~MLR-1023, which ~~and~~is ~~raise~~being andeveloped ~~additional~~as ~~$500,000~~a innovel ~~capital~~therapeutic infor ~~addition~~Type to1 ~~other requirements set forth in the addendum and the License Agreement~~diabetes.

ToOn ~~the~~October ~~extent~~20, ~~that resources have been available~~2021, we ~~have~~as ~~continued~~licensee toexpanded ~~work~~the ~~with~~exclusive ~~our~~MLR-1023 ~~advisors~~Agreement inwith anMP1 ~~effort~~ to ~~restructure~~include ~~our~~two ~~Company and~~additional toclinical ~~identify potential strategic transactions~~indications, ~~including the licensing transactions transaction described above to enhance the~~one ~~value~~for ofNon-Alcoholic ~~the~~Steatohepatitis ~~Company.~~(NASH) ~~Because~~and ~~of our substantial unpaid debt, if we do not raise substantial additional capital in~~ the ~~near~~other ~~future, it~~for ispulmonary ~~likely that the Company will discontinue all operations or seek bankruptcy protection~~inflammation.

36On November 17, 2021, Melior extended the Company’s timeline under the MLR-1023 Agreement from 120 days to 180 days from the effective of the MLR-1023 Agreement for the Company to raise $4 million unless, by 180 days Adhera is in the process of completing transactions to complete the fundraising, then an additional 30 days would be provided to allow for the completion of required fundraising. On February 16, 2022, an addendum to the MLR-1023 Agreement dated August 4, 2021 (the “First Addendum”), was executed by the Company and Melior, which extended the requirement by the Company to raise $4 million (the “Raise Requirement”) to June 16, 2022.

~~Appointment~~On July 18, 2022, the Company and Melior entered into the Second Addendum to the License Agreement (the “Second Addendum”). In accordance with the Second Addendum and subject to the terms and conditions therein, the Raise Requirement was extended to February 1, 2023. Pursuant to the Second Addendum, Melior has a right to terminate the MLR-1023 Agreement as a result of the Company’s inability ~~Executives~~to achieve certain milestones, including the requirement to:

On(i) ~~September 8,~~raise ~~2022~~$500,000 in working capital; (ii) resume engagement with Davos Pharmaceutical Manufacturing and Maladi Drugs & Pharmaceuticals such that the ~~Board~~initial steps of ~~Directors~~MLR-1019 ~~appointed~~API ~~Zahed~~manufacture ~~Subhan~~were initiated; (iii) pay Melior Pharma l, $136,921 as a license payment; (iv) maintain the ~~Company’s~~full-time employment of the Chief ~~Executive~~Scientific Officer ~~and~~who ~~Chairman~~was hired pursuant to the First Addendum; (v) continue to engage with Aegis Capital on activities aimed at providing an up-listing event; (vi) for the duration of the ~~Board~~MLR-1023 Agreement, Adhera will not in-license any additional assets other than those which it has already in-licensed (MLR-1023 and ~~Andrew Kucharchuk~~MLR-1019), asexcept for the ~~Company’s~~Taxeme ~~Chief~~compound ~~Operating~~(PGT) ~~Officer~~previously mentioned in the Second Addendum, ~~effective~~however, ~~September~~no 30funds will be expended on discovery or development of the Taxeme compound during this period; and (vii) fulfill the Raise Requirement defined in the MLR-1023 Agreement which was extended to February 1, ~~2022~~2023.

OnAs ~~November~~of 3February 1, ~~2022~~2023, ~~Trond~~the ~~Waerness~~Company ~~resigned~~had asnot ~~member~~raised the additional $500,000 of capital, commenced API manufacturing, nor completed the ~~Board~~Raise Requirement ofas ~~Directors.~~defined Mrin the original MLR-1023 Agreement. ~~Waerness~~In ~~withdrew~~March 2023, the Company obtained a verbal agreement with Melior to extend ~~his~~the ~~resignation~~terms onof ~~November~~the 3,MLR-1023 ~~2022~~Agreement until such time that the milestones have been met, ~~and~~including payment of the ~~Board~~maintenance costs of the ~~Directors~~MLR-1023 ispatent. ~~expected~~However, Melior may terminate our license of MLR-1023 at any time but only in response to renon-~~appoint~~performance ~~him~~of ascontinuing license obligations and with the required notice to cure non-performance. Any termination or loss of use of MLR-1023 would have a ~~director~~material adverse effect on our business, which would likely result in the Company discontinuing all operations and seeking bankruptcy protection.

To the extent that resources have been available, we have continued to work with our advisors to restructure our Company and to identify potential strategic transactions, including the Melior transaction described above to enhance the value of the Company. Because of our substantial unpaid debt, if we do not raise substantial additional capital in the immediate future, it is likely that the company will discontinue all operations or seek bankruptcy protection.

Results of Operations

Comparison of the Three Months Ended ~~September~~March 3031, ~~2022~~2023 to the Three Months Ended ~~September~~March 3031, ~~2021~~2022

Operating Expenses

Our operating expenses for the three months ended ~~September~~March 3031, ~~2022~~2023, and ~~2021~~2022 are summarized as follows:

Three Months Ended

(in thousands)

~~September~~March 3031, ~~2022~~2023

~~September~~March 3031, ~~2021~~2022

Increase/ (Decrease)

General and administrative expenses

~~548~~353

~~232~~260

~~316~~93

Total operating expenses

~~548~~353

~~232~~260

~~316~~93

General and Administrative

General and administrative ~~expense~~expenses increased by approximately $~~316~~93,000 for the three months ended ~~September~~March 3031, ~~2022~~2023, as compared to the three ~~months~~ months ended ~~September~~March 3031, ~~2021~~2022. The increase was primarily due to ~~a $137,000 licensing payment to Melior I for MLR-1023,~~ an increase in compensation cost of $8281,000 related to ~~the~~employing ~~hiring~~ a Chief Scientific Officer, ain ~~$45~~2022,~~000~~ ~~increase in fees paid for director~~ and ~~officer insurance~~an ~~and a~~ $5211,000 increase inof other public company ~~fees including legal~~ expenses~~, audit fees and investor relations consulting~~.

Other Expense

	Three Months Ended
(in thousands)	~~September~~March 3031, ~~2022~~2023			~~September~~March 3031, ~~2021~~2022			Increase/ (Decrease)
Interest expense	$	(~~317~~334	)	$	(~~261~~311	)	$	5623
Gain/(loss) on extinguishment of debt		9239			~~(177~~5	)		(~~269~~34	)
Initial and change in derivative liability		~~(254~~717	)		~~(2,968~~667	)		(~~2,714~~50	)
Amortization of debt discount		(777	)		(101	)		676
Loan inducement fee		(347	)		-			347
Total other income (expense)	$	(1,256	)	$	(3,507	)	$	(2,251	)
Amortization of debt discount		(608	)		(175	)		433
Total other income (expense)	$	(533	)	$	186		$	719

Interest expense for the three months ended ~~September~~March 3031, ~~2022~~2023, increased by $5623,000 compared to the three months ended ~~September~~March 3031, ~~2021~~2022, primarily due to an increase in interest expense related to our outstanding ~~convertible~~term ~~notes~~loans. The derivative liability for the quarter ended ~~September~~March 31, 302023, ~~2022,~~ decreased by $~~2.7~~50,000 ~~million~~ as a result of a decrease in the fair value of our convertible notes and warrants that were classified as as a derivative on our consolidated balance sheet as of ~~September~~March 3031, ~~2022~~2023. The gain on extinguishment of debt was due to the payment and conversion of principal and interest on our outstanding convertible notes. The increase of $~~676~~433,000 for the amortization of debt discounts was due to an increase in our ~~convertible~~term notes outstanding. The loan inducement fee of approximately $347,000 was related to to our 2023 Term Loans.

~~Comparison of the Nine Months Ended September 30, 2022 to the Nine Months Ended September 30, 2021~~44

Operating Expenses

Our operating expenses for the nine months ended September 30, 2022, and 2021 are summarized as follows:

	Nine Months Ended
(in thousands)	September 30, 2022		September 30, 2021		Increase/ (Decrease)
Sales and marketing	$	-	$	17	$	(17	)
General and administrative expenses		1,257		454		803
Total operating expenses	$	1,257	$	471	$	786

Sales and Marketing

Sales and marketing expenses for the nine months ended September 30, 2021, were primarily related to storage and destruction costs incurred for Prestalia® inventory. No sales and marketing expenses were incurred for the nine months ended September 30, 2022.

General and Administrative

General and administrative expense increased by approximately $803,000 for the nine months ended September 30, 2022, as compared to the nine months ended September 30, 2021. The increase was primarily due to a $137,000 licensing payment to Melior I for MLR-1023, an increase in compensation cost of $82,000 related to the hiring a Chief Scientific Officer, a $161,000 increase in fees paid for director and officer insurance and a $423,000 increase in other public company fees including legal expenses, audit fees, investor relations services and financial consulting.

Other Expense

	Nine Months Ended
(in thousands)	September 30, 2022			September 30, 2021			Increase/ (Decrease)
Interest expense	$	(989	)	$	(749	)	$	240
Gain on extinguishment of debt		307			(177	)		(484	)
Initial and change in derivative liability		1,425			(3,055	)		(4,480	)
Amortization of debt discount		(1,265	)		(230	)		1,035
Total other income (expense)	$	(522	)	$	(4,211	)	$	(3,689	)

Interest expense for the nine months ended September 30, 2022 increased by $240,000 compared to the nine months ended September 30, 2021 primarily due to an increase in our outstanding convertible notes. The derivative liability for the quarter ended September 30, 2022, decreased by $4.5 million as a result of a decrease in the fair value of our convertible notes and warrants that were classified as a derivative on our consolidated balance sheet as of September 30, 2022 offset by an increase in the initial valuation of a derivative liability expense from the issuance of convertible notes for the period. The gain on extinguishment of debt was due to the payment and conversion of principal and interest on our outstanding convertible notes. The increase of $1.0 million for the amortization of debt discounts was due an increase in our convertible notes outstanding including the 2022 Bridge loan..

Liquidity & Capital Resources

Working Capital

(in thousands)	~~September~~March 3031, ~~2022~~2023			December 31, ~~2021~~2022
Current assets	$	~~256~~104		$	~~196~~79
Current liabilities		(2223,~~063~~197	)		(2522,~~302~~265	)
Working capital deficit	$	(2123,~~807~~093	)	$	(2522,~~106~~186	)

Negative working capital as of ~~September~~March 3031, ~~2022~~2023, was approximately $2123.81 million as compared to negative working capital of approximately $2522.12 million as of December 31, ~~2021~~2022. The ~~increase~~decrease in working capital is primarily related to an ~~decrease~~increase in in current liabilities of approximately $~~3.2~~932,000 ~~million~~ including an increase of approximately $51.01 million in ~~accrued~~our ~~dividends~~promissory asnotes apayable, ~~result~~net of ~~the~~discounts ~~conversion~~an ~~Series~~increase Ein ~~and~~our ~~Series F Preferred~~accrued ~~Stock~~expenses ~~during the period, offset by an increase~~ of $~~893~~352,000 ~~of accrued expenses~~ including ~~accrued~~ interest for our ~~promissory~~outstanding notes ~~payable~~, an ~~increase~~offset inby ~~our~~a ~~promissory~~$496,000 ~~notes~~decrease ~~payable~~in ofour ~~$1.3~~derivative ~~million~~liability ~~net~~for ofour convertible ~~discounts~~notes and awarrants ~~decrease~~and increase of approximately $~~437~~14,000 ~~for~~in aother ~~derivative~~changes ~~liability~~in ~~related to~~operating ~~our~~assets ~~outstanding convertible notes~~ and ~~warrants~~liabilities.

Cash Flows and Liquidity

Net cash used in Operating Activities

Net cash used in operating activities was approximately $~~1.3~~310,000 ~~million~~ during the ~~nine~~three months ended ~~September~~March 3031, ~~2022~~2023. This was primarily due to our net operating loss of approximately $~~1.8 million~~886,000, partially offset by a $~~1.4~~717,000 ~~million~~ gain related to a decrease in the fair ~~value~~ value of our outstanding derivative liability for our convertible notes and warrants, non-cash interest expense related to term loan and outstanding convertible notes of $~~989~~334,000, non-cash amortization of debt discount of approximately $~~1.3~~608,000 ~~million~~and approximately $347,000 of expense related to a loan inducement fee for our 2023 Term Loans.

Net cash used in operating activities was approximately $~~369~~216,000 during the ~~nine~~three months ended ~~September~~March 3031, ~~2021~~2022. This was primarily due to to our net operating loss of approximately $~~4.6 million~~74,000, partially offset by a $667,000 gain related to a decrease in the fair value of our outstanding derivative ~~expense~~liability offor ~~approximately~~our ~~$3.1~~convertible ~~million~~notes and warrants, non-cash interest expense related to term ~~loans~~loan and outstanding convertible notes of $~~749~~311,000, non-cash amortization of debt discount of $~~230~~175,000 and other changes in operating assets and liabilities ~~including an increase in accounts payable and accrued expenses~~ of approximately $~~102~~44,000.

Net cash used in Investing Activities

There was no cash used in or provided by investing activities for the ~~nine~~three months ended ~~September~~March 3031, ~~2022~~2023, or ~~September 30, 2021~~2022.

Net cash provided by Financing Activities

Net cash provided by financing activities for the ~~nine~~three months ended ~~September~~March 3031, ~~2022~~2023, ~~and 2021~~ was approximately $~~1.3 million and $519~~347,000~~, respectively~~. Net cash provided by financing activities for the ~~nine~~three-months ended ~~September~~March 3031, ~~2022~~2023, included approximately $~~1.9~~442,000 ~~million~~ from the sale of promissory notes and warrants, net of issuance costs to certain accredited investors, offset by the repayment of principal and interest on outstanding convertible notes of $~~551~~95,000 ~~and $2,000 for the repurchase of common stock outstanding~~.

Net cash provided by financing activities for the ~~nine~~three months ended ~~September 30~~March 31, ~~2021~~2022, ofwas approximately $~~519~~180,000 ~~was~~ from the issuance of convertible promissory notes ~~to certain accredited investors~~, net of issuance costs to certain accredited investors.

While we recently raised $~~1.7 million~~200,000, net of issuance costs as described in the next paragraph, we will need to raise additional operating ~~capital~~ capital within the several months to maintain our operations and to realize our business plan. Without additional sources of cash and/or ~~the~~ the deferral, reduction, or elimination of significant planned expenditures, we will not have the cash resources to continue as a going ~~concern~~ concern thereafter.

Financing

InOn ~~May~~April ~~2022~~28, we closed a private placement offering of $2,222,222 of notes and 1,111,112 warrants and received approximately $1.7 million in net proceeds. The notes come due upon the earliest to occur of (i) the 12 month anniversary of the original issuance date of the notes, or May 11, 2023, ~~(ii) a financing transaction which results in~~ the Company’s ~~common~~entered ~~stock~~into ~~being listed on~~ a ~~national~~Securities ~~securities exchange,~~Purchase ~~and~~Agreement ~~(iii)~~with antwo ~~event~~affiliated ofaccredited ~~default,~~investors inpursuant ~~which case the amount payable could be increased~~ to ~~125%~~which of the ~~outstanding balance if our~~ ~~common stock is not listed on a national securities exchange at the time of such event of default. If an event of default occurs before the~~ Company’s ~~common~~issued ~~stock~~and issold ~~listed on a national securities exchange,~~ the ~~event~~investors ~~of default would require~~ a ~~125%~~non-convertible ofOriginal ~~the~~Issue ~~outstanding principal, accrued interest and other amounts owing thereon. The notes bear interest at 8~~30% ~~per~~Discount ~~annum,~~Senior ~~subject~~Secured toPromissory anNote ~~increase to 15%~~ in ~~case~~ ~~of an event of default as provided for therein. In addition, at any time before~~ the ~~12-month~~principal ~~anniversary of the date of issuance~~amount of ~~the Notes~~$285,714 ~~the~~and ~~Company may~~452,964 ~~upon~~Common ~~five~~Stock ~~days’~~Purchase ~~prior~~Warrants ~~written notice to the Purchaser, prepay all of the then outstanding principal amount of the notes~~ for ~~cash~~a intotal anpurchase ~~amount~~price ~~equal to the sum~~ of ~~105% of all amounts due and owing hereunder~~$200, ~~including all accrued and unpaid interest~~000. The Company’s ~~obligations~~received ~~under~~total ~~the Notes are secured by a first priority lien on all~~ consideration of ~~the assets of the Company and its wholly-owned subsidiaries~~$200,000.

We do not have sufficient funds to meet our working capital needs for the next 12 months. We will require additional funds in the near future to continue our business. Historically, we have raised additional capital to supplement our commercialization, clinical development and operational expenses. We will need to raise additional funds required, which may result in further dilution in the equity ownership of our shares. There can be no assurance that additional financing will be available or, if available, that it can be obtained on commercially reasonable terms. Failure to raise additional capital through one or more financings, divesting development assets or reducing discretionary spending could have a material adverse effect on our ability to achieve our intended business objectives. These factors raise substantial doubt about our ability to continue as a going concern.

Off-Balance Sheet Arrangements

As of ~~September~~March 3031, ~~2022~~2023, we did not have any off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of Regulation S-K.

Critical Accounting Policies and Estimates

Our significant accounting policies are more fully described in the notes to our consolidated financial statements included herein for the period ended ~~September~~March 3031, ~~2022~~2023, and in the notes to our consolidated financial statements included in our Annual Report on Form 10-K ~~for~~ for the year ended December 31, ~~2021~~2022.

3946

New and Recently Adopted Accounting Pronouncements

Any new and recently adopted accounting pronouncements are more fully described in Note 1 to our consolidated financial statements included herein for the period ended ~~September~~March 3031, ~~2022~~2023.

ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 4 CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act 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 SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosures. In designing disclosure controls and procedures, our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Any controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute, assurance of achieving the desired control objectives.

Our management, with the participation of our principal executive officer and principal financial officer, has evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this Report. Based upon that evaluation and subject to the foregoing, our principal executive officer and principal financial officer concluded that, our disclosure controls and procedures were not effective due to the material weaknesses in internal controls over financial reporting described below.

Material Weakness in Internal Control over Financial Reporting

Management assessed the effectiveness of our internal control over financial reporting as of ~~September~~March 3031, ~~2022~~2023, based on the framework established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, management has determined that our internal control over financial reporting as of ~~September~~March 3031, ~~2022~~2023, was ~~not~~ not effective.

A material weakness, as defined in the standards established by the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”), is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.

The ineffectiveness of our internal control over financial reporting was due to the following material weaknesses:

● Inadequate segregation of duties consistent with control objectives, and lack of monitoring controls asover the ~~Company does not have any full-time financial or~~ accounting ~~employees~~function ~~and~~as ~~a single individual serves asboth~~ the ~~principal~~Company ~~financial~~has ~~officer~~limited ~~and the principal~~ accounting ~~officer~~staff.; ● Lack of qualified accounting personnel to prepare and report financial information in accordance with GAAP; ● Lack of a separate Audit Committee of the Board of Directors; and ● Lack of documentation on policies and procedures that are critical to the accomplishment of financial reporting objectives.

4047

Management’s Plan to Remediate the Material Weakness

Providing funds are available, management plans to implement measures designed to ensure that control deficiencies, contributing to the material weakness are remediated, such that these controls are designed, implemented, and operating effectively. The remediation actions planned include:

	●	Identifying gaps in our skills base and the expertise of our personnel necessary to meet the financial reporting requirements of a public company;

	●	Developing written policies and procedures on internal control over financial reporting and monitor the effectiveness of operations on existing controls and procedures; and

	●	Establishing a separate Audit Committee of the Board of Directors.

We will continue to reassess our plans to remedy our internal control deficiencies in light of our personnel structure and our financial condition. We hope that such measures will lead to an improvement in the timely preparation of financial reports and strengthen our segregation of duties at our company. We are committed to developing a strong internal control environment, and we believe that the remediation efforts that we will implement will result in significant improvements in our control environment. Our management will continue to monitor and evaluate the relevance of our risk-based approach and the effectiveness of our internal controls and procedures over financial reporting on an ongoing basis and is committed to taking further action and implementing additional enhancements or improvements, as necessary and as funds allow. However, our significant working capital deficiency may delay remediation.

There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter ended ~~September~~March 3031, ~~2022~~2023, that have materially affected, or that are reasonably likely to materially affect, our internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

General

Currently, there is no material litigation pending against our company. From time to time, we may become a party to litigation and subject to claims incident to the ordinary course of our business.

ITEM 1A. RISK FACTORS

An investment in our common stock involves a number of very significant risks. You should carefully consider the risk factors included in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2021~~2022 (the “Annual Report”), as filed with the SEC on ~~April~~March 1531, ~~2022~~2023, in addition to other information contained in those documents and reports that we have filed with the SEC pursuant to the Securities Act and the Exchange Act since the date of the filing of the Annual Report, including, without limitation, this Quarterly Report on Form 10-Q, in evaluating our company and its business before purchasing shares of our common stock. Our business, operating results and financial condition could be adversely affected due to any of those risks.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

4148

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

None.

ITEM 5. OTHER INFORMATION

None.

Item 6. Exhibits

Exhibit		Incorporated by Reference			Filed or Furnished
Exhibit No.	Description
No.	Exhibit Description	Form	Date	Number	Herewith
3.1	Restated Certificate of Incorporation of the Registrant dated July 20, 2005 (filed as Exhibit 3.1 to our Current Report on Form 8-K dated July 20, 2005, incorporated herein by reference)
3.1	Restated Certificate of Incorporation of the Registrant dated July 20, 2005	8-K	7/20/05	3.1
3.2	Certificate of Amendment of the Amended and Restated Certificate of Incorporation of the Registrant, dated June 10, 2008 (filed as Exhibit 3.1 to our Current Report on Form 8-K dated June 10, 2008, and incorporated herein by reference)
3.1(a)	Certificate of Amendment of the Amended and Restated Certificate of Incorporation of the Registrant, dated June 10, 2008	8-K	6/10/08	3.1
3.3	Certificate of Amendment of the Amended and Restated Certificate of Incorporation of the Registrant, dated July 21, 2010 (filed as Exhibit 3.1 to our Current Report on Form 8-K dated July 21, 2010, and incorporated herein by reference)
3.1(b)	Certificate of Amendment of the Amended and Restated Certificate of Incorporation of the Registrant, dated July 21, 2010	8-K	7/21/10	3.1
3.4	Certificate of Amendment of the Amended and Restated Certificate of Incorporation of the Registrant, dated July 18, 2011 (filed as Exhibit 3.1 to our Current Report on Form 8-K dated July 14, 2011, and incorporated herein by reference)
3.1(c)	Certificate of Amendment of the Amended and Restated Certificate of Incorporation of the Registrant, dated July 18, 2011	8-K	7/14/11	3.1
3.5	Certificate of Amendment of the Amended and Restated Certificate of Incorporation of the Registrant, dated December 22, 2011 (filed as Exhibit 3.1 to our Current Report on Form 8-K dated December 22, 2011, and incorporated herein by reference)
3.1(d)	Certificate of Amendment of the Amended and Restated Certificate of Incorporation of the Registrant, dated December 22, 2011	8-K	12/22/11	3.1
3.6	Certificate of Amendment of the Amended and Restated Certificate of Incorporation of the Registrant, dated August 1, 2017 (filed as Exhibit 3.1 to our Current Report on Form 8-K dated August 1, 2017, and incorporated herein by reference)
3.1(e)	Certificate of Amendment of the Amended and Restated Certificate of Incorporation of the Registrant, dated August 1, 2017	8-K	8/1/17	3.1
3.7	Certificate of Amendment of the Amended and Restated Certificate of Incorporation of Registrant, dated October 4, 2018 (filed as Exhibit 3.1 to our Current Report on Form 8-K dated October 4, 2018, and incorporated herein by reference)
3.1(f)	Certificate of Amendment of the Amended and Restated Certificate of Incorporation of Registrant, dated October 4, 2018	8-K	10/4/18	3.1
3.8	Amended and Restated Bylaws of the Registrant dated August 21, 2012 (filed as Exhibit 3.7 to our Annual Report on Form 10-K for the fiscal year ended December 31, 2011, incorporated herein by reference)
3.1(g)	Certificate of Designation, Rights and Preferences of Series A Junior Participating Preferred Stock dated January 17, 2007	8-K	1/19/07	3.1
3.9	Certificate of Amendment to the Certificate of Incorporation dated September 30, 2022 (filed as Exhibit 3.1 to our Current Report on Form 8-K dated October 6, 2022, and incorporated herein by reference)
3.1(h)	Amended Designation, Rights, and Preferences of Series A Junior Participating Preferred Stock, dated June 10, 2008	8-K	6/10/08	3.2
3.1(i)	Certificate of Designations or Preferences, Rights and Limitations of Series B Preferred Stock dated December 22, 2011	8-K	12/22/11	3.2
3.1(j)	Certificate of Designation of Rights, Preferences and Privileges of Series C Convertible Preferred Stock	8-K	3/7/14	3.1
3.1(k)	Certificate of Designation of Rights, Preferences and Privileges of Series D Convertible Preferred Stock	8-K	8/5/15	3.1

4249

3.1(l)	Certificate of Designation of Preferences, Rights and Limitations of the Series E Convertible Preferred Stock of the Registrant	8-K	4/16/18	3.1
10.1	Form of Securities Purchase Agreement issued by Adhera Therapeutics, Inc. to select accredited investors on December 15, 2022 and January 18, 2023 (filed as Exhibit 10.1 on our Current Report on Form 8-K dated January 26, 2023, and incorporated herein by reference)
3.1(m)	Certificate of Designation of Preferences, Rights and Limitations of the Series F Convertible Preferred Stock of the Registrant	8-K	7/11/18	3.1
10.2	Form of Securities Purchase Agreement issued by Adhera Therapeutics, Inc. to select accredited investors on February 16, 2023 (filed as Exhibit 10.1 on our Current Report on Form 8-K dated February 23, 2023, and incorporated herein by reference)
3.1 (n)	Certificate of Amendment to the Certificate of Incorporation	8-K	10/6/2022	3.1
10.3	Form of Securities Purchase Agreement issued by Adhera Therapeutics, Inc. to select accredited investors on March 2, 2023 (filed as Exhibit 10.1 on our Current Report on Form 8-K dated March 8, 2023, and incorporated herein by reference)
3.2	Amended and Restated Bylaws of the Registrant dated August 21, 2012	10-K	10/10/12	3.7
31.1*	Certification of Principal Executive Officer pursuant to section 302 of the Sarbanes-Oxley Act of 2002
4.1	Form of Convertible Redeemable Promissory Note issued by Adhera Therapeutics, Inc. to select accredited investors on March 15, 2022	10-K	4/15/22	4.21
31.2*	Certification of Principal Financial Officer pursuant to section 302 of the Sarbanes-Oxley Act of 2002
10.1	Addendum to License Agreement Adhera Therapeutics, Inc. and Melior Pharmaceuticals I, LLC dated August 20, 2021 dated February 16, 2022	10-K	4/15/22	10.12
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
10.1(a)	Second Addendum to the License Agreement	8-K	8/4/2022	10.1
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
10.2	Form of Securities Purchase Agreement issued by Adhera Therapeutics, Inc. to select accredited investors on March 15, 2022	10-K	4/15/22	10.16
101.INS*	Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because iXBRL tags are embedded within the Inline XBRL document).
10.3	Code of Business Conduct and Ethics	10-K/A	4/29/22	10.18
101.SCH*	Inline XBRL Taxonomy Extension Schema Document
10.4	Form of Securities Purchase Agreement dated May 11, 2022*	10-Q	5/16/22	10.3
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase Document
10.5	Form of Senior Secured Original Issue Discount Promissory Note dated May 11, 2022	10-Q	5/16/22	10.4
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase Document
10.6	Form of Warrant dated May 11, 2022	10-Q	5/16/22	10.5
101.LAB*	Inline XBRL Taxonomy Extension Labels Linkbase Document
10.7	Form of Security Agreement dated May 11, 2022*	10-Q	5/16/22	10.6
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase Document
10.8	Employment Agreement dated June 29, 2022 between Adhera Therapeutics, Inc. and Zahed Subhan+	10-Q	08/15/2022	10.8
104*	The Cover Page Interactive Data File, formatted in Inline XBRL (included within the Exhibit 101 attachments)
31.1	Certification of Principal Executive Officer pursuant to section 302 of the Sarbanes-Oxley Act of 2002				Filed
31.2	Certification of Principal Financial Officer pursuant to section 302 of the Sarbanes-Oxley Act of 2002
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				Furnished***
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
101.INS	Inline XBRL Instance Document				Filed
101.SCH	Inline XBRL Taxonomy Extension Schema Document				Filed
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document				Filed
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document				Filed
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document				Filed
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document				Filed
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

+	Management contract or compensatory plan or arrangement.
*		Filed herewith.
*	Exhibits and/or Schedules have been omitted. The Company hereby agrees to furnish to the SEC upon request any omitted information.
**		This exhibit is being furnished rather than filed and shall not be deemed incorporated by reference into any filing, in accordance with Item 601 of Regulation S-K .
***	This exhibit is being furnished rather than filed and shall not be deemed incorporated by reference into any filing, in accordance with Item 601 of Regulation S-K.

Copies of this Report (including the financial statements) and any of the exhibits referred to above will be furnished at no cost to our shareholders who make a written request to our Corporate Secretary at Adhera Therapeutics, Inc., 8000 Innovation Parkway, Baton Rouge, Louisiana 70820.

4350

SIGNATURES

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

	ADHERA THERAPEUTICS, INC.
Date: November 14, 2022	By:	/s/ Zahed Subhan
Date: May 22, 2023	By:	/s/ Zahed Subhan
		Zahed Subhan
		CEO (Principal Executive Officer)
Date: November 14, 2022	By:	/s/ Andrew Kucharchuk
Date: May 22, 2023	By:	/s/ Andrew Kucharchuk
		Andrew Kucharchuk
		Chief Operating Officer (Principal Accounting and Financial Officer)

4451

Filing Compare · Adhera Therapeutics, Inc.