0001811623false2024Q2--12-31NONE455674556774012427779860000.05880.05880001811623pxmd:PreFundedCommonStockWarrantsMember2024-06-300001811623pxmd:SeriesXPreferredStockMember2024-01-012024-06-300001811623pxmd:EquityPurchaseAgreementWithLincolnParkCapitalFundLlcMember2024-01-012024-06-300001811623pxmd:SeriesXPreferredStockMember2023-01-012023-06-300001811623us-gaap:CommonStockMember2023-10-302023-10-300001811623us-gaap:RetainedEarningsMember2024-06-300001811623us-gaap:AdditionalPaidInCapitalMember2024-06-300001811623us-gaap:RetainedEarningsMember2024-03-310001811623us-gaap:AdditionalPaidInCapitalMember2024-03-3100018116232024-03-310001811623us-gaap:RetainedEarningsMember2023-12-310001811623us-gaap:AdditionalPaidInCapitalMember2023-12-310001811623us-gaap:RetainedEarningsMember2023-06-300001811623us-gaap:AdditionalPaidInCapitalMember2023-06-300001811623us-gaap:RetainedEarningsMember2023-03-310001811623us-gaap:AdditionalPaidInCapitalMember2023-03-3100018116232023-03-310001811623us-gaap:RetainedEarningsMember2022-12-310001811623us-gaap:AdditionalPaidInCapitalMember2022-12-310001811623pxmd:SeriesXPreferredStockMemberus-gaap:PreferredStockMember2024-06-300001811623us-gaap:CommonStockMember2024-06-300001811623pxmd:SeriesXPreferredStockMemberus-gaap:PreferredStockMember2024-03-310001811623us-gaap:CommonStockMember2024-03-310001811623pxmd:SeriesXPreferredStockMemberus-gaap:PreferredStockMember2023-12-310001811623us-gaap:CommonStockMember2023-12-310001811623pxmd:SeriesXPreferredStockMemberus-gaap:PreferredStockMember2023-06-300001811623us-gaap:CommonStockMember2023-06-300001811623pxmd:SeriesXPreferredStockMemberus-gaap:PreferredStockMember2023-03-310001811623us-gaap:CommonStockMember2023-03-310001811623pxmd:SeriesXPreferredStockMemberus-gaap:PreferredStockMember2022-12-310001811623us-gaap:CommonStockMember2022-12-310001811623pxmd:CanceledStockOptionsMember2024-06-300001811623pxmd:CanceledStockOptionsMember2023-06-300001811623us-gaap:RestrictedStockUnitsRSUMember2023-12-310001811623pxmd:PerformanceBasedRestrictedStockUnitsRsusMember2024-01-012024-06-300001811623pxmd:TimeBasedRestrictedStockUnitsRsusMember2023-01-012023-06-300001811623pxmd:PerformanceBasedRestrictedStockUnitsRsusMember2024-06-300001811623pxmd:PerformanceBasedRestrictedStockUnitsRsusMember2023-06-300001811623pxmd:TimeBasedRestrictedStockUnitsRsusMember2023-06-300001811623us-gaap:ProductMember2024-01-012024-06-300001811623pxmd:EquityPurchaseAgreementWithLincolnParkCapitalFundLlcMember2023-01-012023-06-300001811623pxmd:SeriesXPreferredStockMember2024-06-300001811623pxmd:SeriesXPreferredStockMember2023-12-310001811623us-gaap:RetainedEarningsMember2024-04-012024-06-300001811623us-gaap:RetainedEarningsMember2024-01-012024-06-300001811623us-gaap:RetainedEarningsMember2023-04-012023-06-300001811623us-gaap:RetainedEarningsMember2023-01-012023-06-300001811623pxmd:TardimedMemberpxmd:RelatedPartyConsultingServicesMembersrt:AffiliatedEntityMember2024-04-012024-06-300001811623pxmd:TardimedMemberpxmd:RelatedPartyConsultingServicesMembersrt:AffiliatedEntityMember2024-01-012024-06-300001811623pxmd:TardimedMemberpxmd:RelatedPartyConsultingServicesMembersrt:AffiliatedEntityMember2023-04-012023-06-300001811623pxmd:TardimedMemberpxmd:RelatedPartyConsultingServicesMembersrt:AffiliatedEntityMember2023-01-012023-06-300001811623us-gaap:WarrantMember2024-01-012024-06-300001811623us-gaap:ConvertibleDebtMember2024-01-012024-06-300001811623us-gaap:RestrictedStockUnitsRSUMember2024-06-300001811623srt:MinimumMemberpxmd:ConvertiblePromissoryNoteIssued2023Memberus-gaap:MeasurementInputExpectedTermMember2023-06-300001811623srt:MaximumMemberpxmd:ConvertiblePromissoryNoteIssued2023Memberus-gaap:MeasurementInputExpectedTermMember2023-06-300001811623pxmd:ConvertiblePromissoryNoteIssued2023Memberus-gaap:MeasurementInputRiskFreeInterestRateMember2023-06-300001811623pxmd:ConvertiblePromissoryNoteIssued2023Memberus-gaap:MeasurementInputPriceVolatilityMember2023-06-300001811623pxmd:ConvertiblePromissoryNoteIssued2023Memberus-gaap:MeasurementInputExpectedDividendRateMember2023-06-300001811623srt:MinimumMemberpxmd:ConvertiblePromissoryNoteIssued2023Memberus-gaap:MeasurementInputRiskFreeInterestRateMember2023-02-060001811623srt:MinimumMemberpxmd:ConvertiblePromissoryNoteIssued2023Memberus-gaap:MeasurementInputPriceVolatilityMember2023-02-060001811623srt:MinimumMemberpxmd:ConvertiblePromissoryNoteIssued2023Memberus-gaap:MeasurementInputExpectedTermMember2023-02-060001811623srt:MaximumMemberpxmd:ConvertiblePromissoryNoteIssued2023Memberus-gaap:MeasurementInputRiskFreeInterestRateMember2023-02-060001811623srt:MaximumMemberpxmd:ConvertiblePromissoryNoteIssued2023Memberus-gaap:MeasurementInputPriceVolatilityMember2023-02-060001811623srt:MaximumMemberpxmd:ConvertiblePromissoryNoteIssued2023Memberus-gaap:MeasurementInputExpectedTermMember2023-02-060001811623pxmd:ConvertiblePromissoryNoteIssued2023Memberus-gaap:MeasurementInputExpectedDividendRateMember2023-02-060001811623pxmd:ConvertiblePromissoryNoteIssued2023Member2023-06-300001811623pxmd:ConvertiblePromissoryNoteIssued2023Member2023-02-2800018116232023-06-3000018116232022-12-310001811623us-gaap:RestrictedStockUnitsRSUMember2024-04-012024-06-300001811623pxmd:SeriesXPreferredStockMember2024-04-012024-06-300001811623pxmd:PreFundedCommonStockWarrantsMember2024-04-012024-06-300001811623pxmd:CommonStockWarrantsExcludingPreFundedMember2024-04-012024-06-300001811623us-gaap:RestrictedStockUnitsRSUMember2024-01-012024-06-300001811623pxmd:SeriesXPreferredStockMember2024-01-012024-06-300001811623pxmd:CommonStockWarrantsExcludingPreFundedMember2024-01-012024-06-300001811623us-gaap:RestrictedStockUnitsRSUMember2023-04-012023-06-300001811623us-gaap:ConvertibleDebtSecuritiesMember2023-04-012023-06-300001811623pxmd:SeriesXPreferredStockMember2023-04-012023-06-300001811623pxmd:CommonStockWarrantsExcludingPreFundedMember2023-04-012023-06-300001811623us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-06-300001811623us-gaap:ConvertibleDebtSecuritiesMember2023-01-012023-06-300001811623pxmd:SeriesXPreferredStockMember2023-01-012023-06-300001811623pxmd:CommonStockWarrantsExcludingPreFundedMember2023-01-012023-06-300001811623srt:MaximumMemberpxmd:CanceledStockOptionsMember2024-04-012024-06-300001811623pxmd:CanceledStockOptionsMember2024-04-012024-06-300001811623srt:MaximumMemberpxmd:CanceledStockOptionsMember2024-01-012024-06-300001811623us-gaap:RestrictedStockUnitsRSUMember2024-01-012024-06-300001811623pxmd:CanceledStockOptionsMember2024-01-012024-06-300001811623srt:MaximumMemberpxmd:CanceledStockOptionsMember2023-04-012023-06-300001811623us-gaap:RestrictedStockUnitsRSUMember2023-04-012023-06-300001811623pxmd:CanceledStockOptionsMember2023-04-012023-06-300001811623us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-06-300001811623pxmd:CanceledStockOptionsMember2023-01-012023-06-300001811623pxmd:WarrantExchangeAgreementMemberus-gaap:SubsequentEventMember2024-09-030001811623us-gaap:AdditionalPaidInCapitalMember2023-04-012023-06-3000018116232023-04-012023-06-300001811623us-gaap:AdditionalPaidInCapitalMember2024-04-012024-06-300001811623us-gaap:AdditionalPaidInCapitalMember2024-01-012024-06-300001811623pxmd:EquityPurchaseAgreementWithLincolnParkCapitalFundLlcMemberus-gaap:CommonStockMember2024-04-012024-06-300001811623pxmd:EquityPurchaseAgreementWithLincolnParkCapitalFundLlcMemberus-gaap:CommonStockMember2024-01-012024-06-300001811623us-gaap:CommonStockMember2024-04-012024-06-300001811623us-gaap:CommonStockMember2024-01-012024-06-300001811623us-gaap:CommonStockMember2023-04-012023-06-300001811623us-gaap:CommonStockMember2023-01-012023-06-300001811623pxmd:EquityPurchaseAgreementWithLincolnParkCapitalFundLlcMemberus-gaap:CommonStockMember2023-04-012023-06-300001811623pxmd:EquityPurchaseAgreementWithLincolnParkCapitalFundLlcMemberus-gaap:CommonStockMember2023-01-012023-06-300001811623pxmd:EquityPurchaseAgreementWithLincolnParkCapitalFundLlcMemberus-gaap:CommonStockMember2022-11-172022-11-170001811623pxmd:EquityPurchaseAgreementWithLincolnParkCapitalFundLlcMember2022-11-172022-11-170001811623pxmd:VoxNovaExclusivePharmacyDistributionAgreementMember2023-06-302023-06-300001811623us-gaap:AdditionalPaidInCapitalMember2023-01-012023-06-3000018116232023-01-012023-06-300001811623pxmd:EquityPurchaseAgreementWithLincolnParkCapitalFundLlcMemberus-gaap:CommonStockMember2022-11-170001811623pxmd:VoxNovaExclusivePharmacyDistributionAgreementMember2023-06-3000018116232023-12-3100018116232024-06-300001811623pxmd:AllDirectorsAndOfficersMember2024-04-012024-06-3000018116232024-04-012024-06-3000018116232024-09-2000018116232024-01-012024-06-30xbrli:sharesiso4217:USDpxmd:installmentiso4217:USDxbrli:sharesxbrli:pure

false Q3 --12-31 0001811623 0001811623 2024-01-01 2024-09-30 0001811623 2026-01-13 0001811623 2024-09-30 0001811623 2023-12-31 0001811623 PXMD:SeriesXPreferredStockMember 2024-09-30 0001811623 PXMD:SeriesXPreferredStockMember 2023-12-31 0001811623 2024-07-01 2024-09-30 0001811623 2023-07-01 2023-09-30 0001811623 2023-01-01 2023-09-30 0001811623 PXMD:SeriesXPreferredStockMember us-gaap:PreferredStockMember 2024-06-30 0001811623 us-gaap:CommonStockMember 2024-06-30 0001811623 us-gaap:AdditionalPaidInCapitalMember 2024-06-30 0001811623 us-gaap:RetainedEarningsMember 2024-06-30 0001811623 2024-06-30 0001811623 PXMD:SeriesXPreferredStockMember us-gaap:PreferredStockMember 2023-06-30 0001811623 us-gaap:CommonStockMember 2023-06-30 0001811623 us-gaap:AdditionalPaidInCapitalMember 2023-06-30 0001811623 us-gaap:RetainedEarningsMember 2023-06-30 0001811623 2023-06-30 0001811623 PXMD:SeriesXPreferredStockMember us-gaap:PreferredStockMember 2023-12-31 0001811623 us-gaap:CommonStockMember 2023-12-31 0001811623 us-gaap:AdditionalPaidInCapitalMember 2023-12-31 0001811623 us-gaap:RetainedEarningsMember 2023-12-31 0001811623 PXMD:SeriesXPreferredStockMember us-gaap:PreferredStockMember 2022-12-31 0001811623 us-gaap:CommonStockMember 2022-12-31 0001811623 us-gaap:AdditionalPaidInCapitalMember 2022-12-31 0001811623 us-gaap:RetainedEarningsMember 2022-12-31 0001811623 2022-12-31 0001811623 PXMD:SeriesXPreferredStockMember us-gaap:PreferredStockMember 2024-07-01 2024-09-30 0001811623 us-gaap:CommonStockMember 2024-07-01 2024-09-30 0001811623 us-gaap:AdditionalPaidInCapitalMember 2024-07-01 2024-09-30 0001811623 us-gaap:RetainedEarningsMember 2024-07-01 2024-09-30 0001811623 PXMD:SeriesXPreferredStockMember us-gaap:PreferredStockMember 2023-07-01 2023-09-30 0001811623 us-gaap:CommonStockMember 2023-07-01 2023-09-30 0001811623 us-gaap:AdditionalPaidInCapitalMember 2023-07-01 2023-09-30 0001811623 us-gaap:RetainedEarningsMember 2023-07-01 2023-09-30 0001811623 PXMD:SeriesXPreferredStockMember us-gaap:PreferredStockMember 2024-01-01 2024-09-30 0001811623 us-gaap:CommonStockMember 2024-01-01 2024-09-30 0001811623 us-gaap:AdditionalPaidInCapitalMember 2024-01-01 2024-09-30 0001811623 us-gaap:RetainedEarningsMember 2024-01-01 2024-09-30 0001811623 PXMD:SeriesXPreferredStockMember us-gaap:PreferredStockMember 2023-01-01 2023-09-30 0001811623 us-gaap:CommonStockMember 2023-01-01 2023-09-30 0001811623 us-gaap:AdditionalPaidInCapitalMember 2023-01-01 2023-09-30 0001811623 us-gaap:RetainedEarningsMember 2023-01-01 2023-09-30 0001811623 PXMD:SeriesXPreferredStockMember us-gaap:PreferredStockMember 2024-09-30 0001811623 us-gaap:CommonStockMember 2024-09-30 0001811623 us-gaap:AdditionalPaidInCapitalMember 2024-09-30 0001811623 us-gaap:RetainedEarningsMember 2024-09-30 0001811623 PXMD:SeriesXPreferredStockMember us-gaap:PreferredStockMember 2023-09-30 0001811623 us-gaap:CommonStockMember 2023-09-30 0001811623 us-gaap:AdditionalPaidInCapitalMember 2023-09-30 0001811623 us-gaap:RetainedEarningsMember 2023-09-30 0001811623 2023-09-30 0001811623 us-gaap:ProductMember 2024-01-01 2024-09-30 0001811623 PXMD:EquityPurchaseAgreementWithLincolnParkCapitalFundLlcMember 2022-11-17 2022-11-17 0001811623 PXMD:EquityPurchaseAgreementWithLincolnParkCapitalFundLlcMember 2024-01-01 2024-09-30 0001811623 PXMD:EquityPurchaseAgreementWithLincolnParkCapitalFundLlcMember 2023-01-01 2023-09-30 0001811623 PXMD:ConvertiblePromissoryNoteIssuedTwentyTwentyThreeMember PXMD:LindGlobalFundIILPMember 2023-02-28 0001811623 us-gaap:CommonStockMember PXMD:SecondaryPublicOfferingMember 2023-11-20 0001811623 us-gaap:CommonStockMember PXMD:SecondaryPublicOfferingMember 2023-11-22 2023-11-22 0001811623 PXMD:SecondaryPublicOfferingMember 2023-11-22 2023-11-22 0001811623 us-gaap:CommonStockMember PXMD:SecondaryPublicOfferingMember 2023-11-20 2023-11-20 0001811623 us-gaap:CommonStockMember us-gaap:OverAllotmentOptionMember 2023-11-22 2023-11-22 0001811623 us-gaap:CommonStockMember us-gaap:OverAllotmentOptionMember 2023-11-22 0001811623 PXMD:SecondaryPublicOfferingMember us-gaap:CommonStockMember 2023-11-30 0001811623 PXMD:VoxNovaExclusivePharmacyDistributionAgreementMember 2023-06-30 0001811623 PXMD:VoxNovaExclusivePharmacyDistributionAgreementMember 2023-06-30 2023-06-30 0001811623 us-gaap:CommonStockMember 2023-10-30 2023-10-30 0001811623 us-gaap:CommonStockMember PXMD:PurchaseAgreemnetWithPRVMember us-gaap:SubsequentEventMember 2025-02-28 0001811623 PXMD:SeriesXPreferredStockMember 2024-07-01 2024-09-30 0001811623 PXMD:SeriesXPreferredStockMember 2023-07-01 2023-09-30 0001811623 PXMD:SeriesXPreferredStockMember 2024-01-01 2024-09-30 0001811623 PXMD:SeriesXPreferredStockMember 2023-01-01 2023-09-30 0001811623 us-gaap:RestrictedStockUnitsRSUMember 2024-07-01 2024-09-30 0001811623 us-gaap:RestrictedStockUnitsRSUMember 2023-07-01 2023-09-30 0001811623 us-gaap:RestrictedStockUnitsRSUMember 2024-01-01 2024-09-30 0001811623 us-gaap:RestrictedStockUnitsRSUMember 2023-01-01 2023-09-30 0001811623 PXMD:CommonStockWarrantsMember 2024-07-01 2024-09-30 0001811623 PXMD:CommonStockWarrantsMember 2023-07-01 2023-09-30 0001811623 PXMD:CommonStockWarrantsMember 2024-01-01 2024-09-30 0001811623 PXMD:CommonStockWarrantsMember 2023-01-01 2023-09-30 0001811623 us-gaap:ConvertibleDebtSecuritiesMember 2024-07-01 2024-09-30 0001811623 us-gaap:ConvertibleDebtSecuritiesMember 2023-07-01 2023-09-30 0001811623 us-gaap:ConvertibleDebtSecuritiesMember 2024-01-01 2024-09-30 0001811623 us-gaap:ConvertibleDebtSecuritiesMember 2023-01-01 2023-09-30 0001811623 PXMD:ConvertiblePromissoryNoteIssuedTwentyTwentyThreeMember 2023-09-30 0001811623 PXMD:ConvertiblePromissoryNoteIssuedTwentyTwentyThreeMember us-gaap:MeasurementInputExpectedDividendRateMember 2023-02-06 0001811623 PXMD:ConvertiblePromissoryNoteIssuedTwentyTwentyThreeMember us-gaap:MeasurementInputExpectedDividendRateMember 2023-09-30 0001811623 PXMD:ConvertiblePromissoryNoteIssuedTwentyTwentyThreeMember us-gaap:MeasurementInputPriceVolatilityMember srt:MinimumMember 2023-02-06 0001811623 PXMD:ConvertiblePromissoryNoteIssuedTwentyTwentyThreeMember us-gaap:MeasurementInputPriceVolatilityMember srt:MaximumMember 2023-02-06 0001811623 PXMD:ConvertiblePromissoryNoteIssuedTwentyTwentyThreeMember us-gaap:MeasurementInputPriceVolatilityMember 2023-09-30 0001811623 PXMD:ConvertiblePromissoryNoteIssuedTwentyTwentyThreeMember us-gaap:MeasurementInputRiskFreeInterestRateMember srt:MinimumMember 2023-02-06 0001811623 PXMD:ConvertiblePromissoryNoteIssuedTwentyTwentyThreeMember us-gaap:MeasurementInputRiskFreeInterestRateMember srt:MaximumMember 2023-02-06 0001811623 PXMD:ConvertiblePromissoryNoteIssuedTwentyTwentyThreeMember us-gaap:MeasurementInputRiskFreeInterestRateMember 2023-09-30 0001811623 PXMD:ConvertiblePromissoryNoteIssuedTwentyTwentyThreeMember us-gaap:MeasurementInputExpectedTermMember srt:MinimumMember 2023-02-06 0001811623 PXMD:ConvertiblePromissoryNoteIssuedTwentyTwentyThreeMember us-gaap:MeasurementInputExpectedTermMember srt:MaximumMember 2023-02-06 0001811623 PXMD:ConvertiblePromissoryNoteIssuedTwentyTwentyThreeMember us-gaap:MeasurementInputExpectedTermMember srt:MinimumMember 2023-09-30 0001811623 PXMD:ConvertiblePromissoryNoteIssuedTwentyTwentyThreeMember us-gaap:MeasurementInputExpectedTermMember srt:MaximumMember 2023-09-30 0001811623 PXMD:CanceledStockOptionsMember 2024-07-01 2024-09-30 0001811623 PXMD:CanceledStockOptionsMember 2023-07-01 2023-09-30 0001811623 PXMD:CanceledStockOptionsMember 2024-01-01 2024-09-30 0001811623 PXMD:CanceledStockOptionsMember 2023-01-01 2023-09-30 0001811623 us-gaap:RestrictedStockUnitsRSUMember 2024-07-01 2024-09-30 0001811623 us-gaap:RestrictedStockUnitsRSUMember 2023-07-01 2023-09-30 0001811623 us-gaap:RestrictedStockUnitsRSUMember 2024-01-01 2024-09-30 0001811623 us-gaap:RestrictedStockUnitsRSUMember 2023-01-01 2023-09-30 0001811623 us-gaap:RestrictedStockUnitsRSUMember 2023-12-31 0001811623 us-gaap:RestrictedStockUnitsRSUMember 2024-09-30 0001811623 PXMD:TimeBasedRestrictedStockUnitsRsusMember 2023-09-30 0001811623 PXMD:PerformanceBasedRestrictedStockUnitsRsusMember 2024-09-30 0001811623 PXMD:PerformanceBasedRestrictedStockUnitsRsusMember 2023-09-30 0001811623 PXMD:PerformanceBasedRestrictedStockUnitsRsusMember 2024-01-01 2024-09-30 0001811623 PXMD:CanceledStockOptionsMember srt:MaximumMember 2023-07-01 2023-09-30 0001811623 PXMD:CanceledStockOptionsMember srt:MaximumMember 2024-01-01 2024-09-30 0001811623 PXMD:SeriesXPreferredStockMember 2024-01-01 2024-09-30 0001811623 PXMD:SeriesXPreferredStockMember 2023-01-01 2023-09-30 0001811623 PXMD:EquityPurchaseAgreementWithLincolnParkCapitalFundLlcMember us-gaap:CommonStockMember 2022-11-17 0001811623 PXMD:EquityPurchaseAgreementWithLincolnParkCapitalFundLlcMember us-gaap:CommonStockMember 2022-11-17 2022-11-17 0001811623 PXMD:EquityPurchaseAgreementWithLincolnParkCapitalFundLlcMember us-gaap:CommonStockMember 2024-07-01 2024-09-30 0001811623 PXMD:EquityPurchaseAgreementWithLincolnParkCapitalFundLlcMember us-gaap:CommonStockMember 2023-07-01 2023-09-30 0001811623 PXMD:EquityPurchaseAgreementWithLincolnParkCapitalFundLlcMember us-gaap:CommonStockMember 2024-01-01 2024-09-30 0001811623 PXMD:EquityPurchaseAgreementWithLincolnParkCapitalFundLlcMember us-gaap:CommonStockMember 2023-01-01 2023-09-30 0001811623 PXMD:WarrantExchangeAgreementMember 2024-09-03 0001811623 srt:MinimumMember 2024-09-03 0001811623 srt:MaximumMember 2024-09-03 0001811623 us-gaap:WarrantMember 2024-07-01 2024-09-30 0001811623 us-gaap:WarrantMember 2024-01-01 2024-09-30 0001811623 us-gaap:WarrantMember 2023-07-01 2023-09-30 0001811623 us-gaap:WarrantMember 2023-01-01 2023-09-30 0001811623 us-gaap:CommonStockMember 2024-10-01 2024-10-31 0001811623 srt:MaximumMember 2024-09-30 0001811623 us-gaap:MeasurementInputExpectedDividendRateMember 2024-09-30 0001811623 us-gaap:MeasurementInputPriceVolatilityMember 2024-09-30 0001811623 us-gaap:MeasurementInputRiskFreeInterestRateMember 2024-09-30 0001811623 us-gaap:MeasurementInputExpectedTermMember 2024-09-30 0001811623 PXMD:TardimedMember PXMD:RelatedPartyConsultingServicesMember srt:AffiliatedEntityMember 2024-07-01 2024-09-30 0001811623 PXMD:TardimedMember PXMD:RelatedPartyConsultingServicesMember srt:AffiliatedEntityMember 2023-07-01 2023-09-30 0001811623 PXMD:TardimedMember PXMD:RelatedPartyConsultingServicesMember srt:AffiliatedEntityMember 2024-01-01 2024-09-30 0001811623 PXMD:TardimedMember PXMD:RelatedPartyConsultingServicesMember srt:AffiliatedEntityMember 2023-01-01 2023-09-30 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure PXMD:Decimal

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended September 30, 2024

For the quarterly period ended June 30, 2024

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

For the transition period from to

~~PAXMEDICA~~KUVATRIS THERAPEUTICS, INC. (formerly PaxMedica, Inc.)

(Exact name of registrant as specified in its charter)

Delaware

001-41475

85-0870387

(State or other jurisdiction of
incorporation or organization)

(Commission

File Number)

(IRS Employer
Identification No.)


1000 Wycoff Ave, 3rd Floor, Mahwah, NJ	07430
Delaware	001-41475	85-0870387
(Address Of Principal Executive Offices)	(Zip Code)
(State or other jurisdiction ofincorporation or organization)	(Commission File Number)	(IRS EmployerIdentification No.)

(201) 977-9461


101 Arch Street, 8th FloorBoston, MA		02110
(Address Of Principal Executive Offices)		(Zip Code)

(239) 216-1459

Registrant’s telephone number, including area code

Not Applicable

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

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

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common stock, par value $0.0001 per share		PXMD		None


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.0001 per share	PXMD	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 to Section 13(a) of the Exchange Act. ☐

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

As of January 13, 2026, the Registrant had 126,264,370 shares of common stock, par value $0.0001 per share, issued and outstanding.

~~As of September 20, 2024, the Registrant had 10,879,170 shares of common stock, par value $0.0001 per share, issued and outstanding.~~EXPLANATORY NOTE

Kuvatris Therapeutics, Inc., formerly known as PaxMedica, Inc., (the “Company,” “we,” “us,” or “our”) is filing this Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2024 (this “Quarterly Report”), in order to comply with regulatory requirements set forth and communicated to us by the Financial Industry Regulatory Agency (“FINRA”). As described in a Current Report on Form 8-K we filed on March 7, 2025 and elsewhere in this filing, on February 28, 2025, we entered into a stock purchase agreement with Pax Rescue Vehicle, LLC, a Delaware limited liability company (“PRV”), pursuant to which the Company, on March 3, 2025 (the “Issuance Date”), issued to PRV 114,754,700 shares of its common stock, par value $0.0001 per share (the “common stock”), which constituted over 90% of the Company’s authorized voting securities as of the Issuance Date. This issuance of common stock was made in reliance on the exemption from registration available under Rule 506(c) of Regulation D of the Securities Act of 1933, as amended (the “Securities Act”), and was authorized prior to the Issuance Date by unanimous written consent of the Company’s board of directors (the “Board”) pursuant to Section 141(f) of the Delaware General Corporation Law (the “DGCL”). The issuance of the common stock to PRV represented a change-in-control of the Company.

This action was undertaken in order to facilitate a “going private” transaction of the Company, as the common stock was trading at a market price of $0.0001 during the month of the Issuance Date and was essentially worthless. As an alternative to filing for liquidation under Chapter 7 of the U.S. Bankruptcy Code (“Chapter 7”), we opted to take the Company private, so as to maximize the value of its remaining assets for the benefit of the Company’s remaining stakeholders, particularly its creditors, and to enable its minority common shareholders to realize a taxable event.

In connection with this action, on May 20, 2025, the Company forwarded a letter to the Depositary Trust Company (“DTC”) in which it declared the issued and outstanding shares of common stock, held by DTC on behalf of the beneficial shareholders of the Company to be null, void and worthless. On June 12, 2025, the Company forwarded a letter of instruction to its transfer agent, VStock Transfer, LLC (the “Transfer Agent”), directing the Transfer Agent to cancel all shares of common stock held by DTC. Further, on June 13, 2025, the Company filed a Form 15-12G with the Securities and Exchange Commission (the “SEC”), terminating its registration under Section 12(g) of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), and suspending its obligation to file reports under Sections 13 and 15(d) of the Exchange Act.

Subsequently, FINRA notified the Company that it could not ratify any of the corporate actions referenced in the immediately preceding paragraph, as well as the Company’s change of name to Kuvatris Therapeutics, Inc., which took place on June 6, 2025, until such time as the Company had filed all delinquent periodic SEC reports required under the Exchange Act. For that reason, the Company is filing this Quarterly Report.

~~Table~~KUVATRIS THERAPEUTICS, ~~of Contents~~INC.

PAXMEDICA, INC.

Form 10-Q

For the Quarter Ended ~~June~~September 30, 2024

Table of Contents

		Page
PART I. FINANCIAL INFORMATION		1
Item 1.	Financial Statements	1
	Condensed Balance Sheets as of September 30, 2024 (Unaudited) and December 31, 2023	1
	(Unaudited) Condensed Statements of Operations for the three- and nine- months ended September 30, 2024 and September 30, 2023	2
	(Unaudited) Condensed Statements of Changes in Stockholders’ (Deficit) Equity for the three- and nine- months ended September 30, 2024 and September 30, 2023	3
	(Unaudited) Condensed Statements of Cash Flows for the nine months ended September 30, 2024 and September 30, 2023	4
	Notes to Unaudited Condensed Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	24
Item 4.	Controls and Procedures	24
PART II. OTHER INFORMATION		26
Item 1.	Legal Proceedings	26
Item 1A.	Risk Factors	26
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	26
Item 3.	Defaults Upon Senior Securities	26
Item 4.	Mine Safety Disclosures	26
Item 5.	Other Information	26
Item 6.	Exhibits	27


		Page
PART I. FINANCIAL INFORMATION		1
Item 1.	Financial Statements	1
	Condensed Balance Sheets as of June 30, 2024 (Unaudited) and December 31, 2023	1
	(Unaudited) Condensed Statements of Operations for the three- and six- months ended June 30, 2024 and June 30, 2023	2
	(Unaudited) Condensed Statements of Changes in Stockholders’ (Deficit) Equity for the three- and six- months ended June 30, 2024 and June 30, 2023	3
	(Unaudited) Condensed Statements of Cash Flows for the six months ended June 30, 2024 and June 30, 2023	4
	Notes to Unaudited Condensed Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	23
Item 4.	Controls and Procedures	23
PART II. OTHER INFORMATION		24
Item 1.	Legal Proceedings	24
Item 1A.	Risk Factors	24
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	24
Item 3.	Defaults Upon Senior Securities	24
Item 4.	Mine Safety Disclosures	24
Item 5.	Other Information	24
Item 6.	Exhibits	25

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

~~PAXMEDICA~~KUVATRIS THERAPEUTICS, INC.

CONDENSED BALANCE SHEETS (Unaudited)

	September 30,			December 31,
	2024			2023
ASSETS
Current assets
Cash	$	444,855		$	4,710,642
Prepaid and other current assets		375,525			969,763
Total current assets		820,380			5,680,405
Total assets	$	820,380		$	5,680,405

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities
Accounts payable	$	2,145,739		$	830,233
Accrued expenses		106,211			177,118
Accrued expenses - compensation		—			787,981
Total current liabilities		2,251,950			1,795,332
Deferred revenue		500,000			500,000
Total liabilities		2,751,950			2,295,332

Commitments and contingencies (Note 8)		-			-

Stockholders’ (Deficit) Equity
Preferred stock, par value $0.0001, 10,000,000 shares authorized:
Series X preferred shares, 500,000 shares authorized as of September 30, 2024 and December 31, 2023; 45,567 shares issued and outstanding at September 30, 2024 and December 31, 2023		5			5
Common stock, par value $0.0001; 200,000,000 shares authorized as of September 30, 2024 and December 31, 2023; 10,879,170 and 7,401,242 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively		1,088			740
Additional paid-in capital		57,664,684			55,414,069
Accumulated deficit		(59,597,347	)		(52,029,741	)
Total stockholders’ (deficit) equity		(1,931,570	)		3,385,073
Total liabilities, and stockholders’ (deficit) equity	$	820,380		$	5,680,405


	June 30,		December 31,
	2024		2023
ASSETS
Current assets
Cash	$	324,486	$	4,710,642
Prepaid and other current assets		475,125		969,763
Total current assets		799,611		5,680,405
Total assets	$	799,611	$	5,680,405

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities
Accounts payable	$	2,042,103	$	830,233
Accrued expenses		65,128		177,118
Accrued expenses - compensation		—		787,981
Total current liabilities		2,107,231		1,795,332
Deferred revenue		500,000		500,000
Total liabilities		2,607,231		2,295,332

Commitments and contingencies (Note 8)

Stockholders’ (Deficit) Equity
Preferred stock, par value $0.0001, 10,000,000 shares authorized:
Series X preferred shares, 500,000 shares authorized as of June 30, 2024 and December 31, 2023; 45,567 shares issued and outstanding at June 30, 2024 and December 31, 2023		5		5
Common stock, par value $0.0001; 200,000,000 shares authorized as of June 30, 2024 and December 31, 2023; 7,779,860 and 7,401,242 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively		778		740
Additional paid-in capital		56,912,302		55,414,069
Accumulated deficit		(58,720,705)		(52,029,741)
Total stockholders’ (deficit) equity		(1,807,620)		3,385,073
Total liabilities, and stockholders’ (deficit) equity	$	799,611	$	5,680,405

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

~~Table~~KUVATRIS THERAPEUTICS, ~~of Contents~~INC.

PAXMEDICA, INC.

CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023

Operating expenses
General and administrative	$	771,005		$	2,425,849		$	5,557,381		$	8,960,254
Research and development		116,932			1,938,672			2,019,226			2,750,192
Total operating expenses		887,937			4,364,521			7,576,607			11,710,446

Loss from operations		(887,937	)		(4,364,521	)		(7,576,607	)		(11,710,446	)

Other income (expense)
Interest expense		—			(1,309	)		—			(9,165	)
Loss on extinguishment of debt		—			(357,407	)		—			(394,257	)
Change in fair value of notes		—			(325,981	)		—			(114,704	)
Other expense		11,295			—			9,001			(140,680	)
Total other income (expense)		11,295			(684,697	)		9,001			(658,806	)

Net loss	$	(876,642	)	$	(5,049,218	)	$	(7,567,606	)	$	(12,369,252	)

Deemed dividend on warrant inducement		(53,022	)		-			(53,022	)		-
Net loss attributable to common stockholders		(929,664	)		(5,049,218	)		(7,620,628	)		(12,369,252	)
Basic and diluted weighted average number of shares outstanding		9,056,259			971,768			8,047,060			859,455

Basic and diluted net loss per share	$	(0.10	)	$	(5.20	)	$	(0.95	)	$	(14.39	)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023

Operating expenses
General and administrative	$	1,489,027	$	2,768,910	$	4,786,377	$	6,583,094
Research and development		1,509,481		589,029		1,902,293		811,520
Total operating expenses		2,998,508		3,357,939		6,688,670		7,394,614

Loss from operations		(2,998,508)		(3,357,939)		(6,688,670)		(7,394,614)

Other income (expense)
Interest expense		—		(3,928)		—		(7,856)
Loss on extinguishment of debt		—		—		—		(36,850)
Change in fair value of notes		—		(124,087)		—		211,277
Other expense		729		(333)		(2,294)		(91,991)
Total other income (expense)		729		(128,348)		(2,294)		74,580

Net loss	$	(2,997,779)	$	(3,486,287)	$	(6,690,964)	$	(7,320,034)

Basic and diluted weighted average number of shares outstanding		7,655,549		860,715		7,536,915		802,368

Basic and diluted net loss per share	$	(0.39)	$	(4.05)	$	(0.89)	$	(9.12)

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

~~Table~~KUVATRIS THERAPEUTICS, ~~of Contents~~INC.

~~PAXMEDICA, INC.~~CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDER’S (DEFICIT) EQUITY

CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDERS’ (DEFICIT) EQUITY

(Unaudited)

For the Three Months Ended September 30, 2024

For the Three Months Ended June 30, 2024

	Shares		Amount		Shares		Amount		Capital		Deficit			Equity (Deficit)
	Series X Preferred Stock				Common Stock				Additional Paid-in		Accumulated			Total Stockholders’
	Shares		Amount		Shares		Amount		Capital		Deficit			Equity (Deficit)
Balance at July 1, 2024		45,567	$	5		7,779,860	$	778	$	56,912,302	$	(58,720,705	)	$	(1,807,620	)
Issuance of common stock underlying restricted stock units, net of tax withholding		—		—		—		—		—		—			—
Issuance of common stock converted from prefunded warrants		—		—		—		—		—		—			—
Issuance of common stock in connection with warrant inducement, net of fees		—		—		3,099,310		310		752,382		—			752,692
Stock-based compensation		—		—		—		—		—		—			—
Net loss		—		—		—		—		—		(876,642	)		(876,642	)
Balance at September 30, 2024		45,567	$	5		10,879,170	$	1,088	$	57,664,684	$	(59,597,347	)	$	(1,931,570	)

For the Three Months Ended September 30, 2023


	Shares				Amount			Shares				Amount			Capital			Deficit			Equity (Deficit)
										Additional					Total
	Series X Preferred Stock							Common Stock							Additional Paid-in			Accumulated			Total Stockholders’
	Series X Preferred Stock					Common Stock				Paid-in			Accumulated		Stockholders’
	Shares				Amount			Shares				Amount			Capital			Deficit			Equity (Deficit)
	Shares		Amount			Shares	Amount			Capital			Deficit		Equity (Deficit)
Balance at July 1, 2023		45,567			$	5			904,087			$	90		$	43,325,314		$	41,060,050		$	2,265,359
Balance at April 1, 2024	45,567		$	5		7,465,629	$	747		$	56,912,182		$	(55,722,926)	$	1,190,008
Issuance of common stock in connection with equity purchase agreement		—			$	—			57,353			$	6		$	795,295		$	—		$	795,301
Issuance of common stock underlying restricted stock units, net of tax withholding	—			—		—		—			—			—		—
Issuance of common stock warrants in connection with notes payable, net of fees		—			$	—			96,122			$	10		$	445,157		$	—		$	445,167
Issuance of common stock converted from prefunded warrants	—			—		314,231		31			(31)			—		—
Delivery of common stock underlying restricted stock units, net of tax withholding		—			$	—			16,253			$	1		$	(58,435	)	$	—		$	(58,434	)
Stock-based compensation	—	—		—	$	—		—	—		~~151~~	$	—	—	$	~~151~~1,064,906		$	—		$	1,064,906
Net loss	—	—		—	$	—		—	—		—	$	—	~~(2,997,779)~~	$	~~(2,997,779)~~—		$	(5,049,218	)	$	(5,049,218	)
Balance at June 30, 2024	45,567		$	5		7,779,860	$	778		$	56,912,302		$	(58,720,705)	$	(1,807,620)
Balance at September 30, 2023		45,567			$	5			1,073815			$	107		$	45,572,237		$	(46,109,268	)	$	(536,919	)

For The Nine Months Ended September 30, 2024

For the Three Months Ended June 30, 2023

	Shares		Amount		Shares		Amount		Capital			Deficit			Equity (Deficit)
	Series X Preferred Stock				Common Stock				Additional Paid-in			Accumulated			Total Stockholders’
	Shares		Amount		Shares		Amount		Capital			Deficit			Equity (Deficit)
Balance at January 1, 2024		45,567	$	5		7,401,242	$	740	$	55,414,069		$	(52,029,741	)	$	3,385,073
Issuance of common stock underlying restricted stock units, net of tax withholding		—		—		64,387		7		(15,286	)		—			(15,279	)
Issuance of common stock converted from prefunded warrants		—		—		314,231		31		(31	)		—			—
Issuance of common stock in connection with warrant inducement		—		—		3,099,310		310		752,382			—			752,692
Stock-based compensation		—		—		—		—		1,513,550			—			1,513,550
Net loss		—		—		—		—		—			(7,567,606	)		(7,567,606	)
Balance at September 30, 2024		45,567	$	5		10,879,170	$	1,088	$	57,664,684		$	(59,597,347	)	$	(1,931,570	)

For The Nine Months Ended September 30, 2023


	Shares				Amount			Shares				Amount			Capital			Deficit			Equity (Deficit)
										Additional					Total
	Series X Preferred Stock							Common Stock							Additional Paid-in			Accumulated			Total Stockholders’
	Series X Preferred Stock					Common Stock				Paid-in			Accumulated		Stockholders’
	Shares				Amount			Shares				Amount			Capital			Deficit			Equity (Deficit)
	Shares		Amount			Shares	Amount			Capital			Deficit		Equity (Deficit)
Balance at January 1, 2023		45,567			$	5			707,976			$	71		$	33,848,740		$	(33,740,016	)	$	108,800
Balance at April 1, 2023	45,567		$	5		818,846	$	82		$	40,106,443		$	(37,573,763)	$	2,532,767
Reclassification of shares settled liability to equity		—			$	—			1,824			$	—		$	160,949		$	—		$	160,949
Reclassification of shares settled liability to equity	—		$	—		422	$	—		$	34,499		$	—	$	34,499
Issuance of common stock in connection with equity purchase agreement		—			$	—			209,118			$	21		$	5,565,895		$	—		$	5,565,916
Issuance of common stock in connection with equity purchase agreement	—		$	—		81,170	$	8		$	1,965,607		$	—	$	1,965,615
Issuance of common stock warrants in connection with notes payable, net of fees		—			$	—			96,112			$	10		$	445,157		$	—		$	445,167
Issuance of common stock warrants in connection with notes payable, net of fees	—		$	—		—	$	—		$	—		$	—	$	—
Delivery of common stock underlying restricted stock units, net of tax withholding		—				—			16,272				1			(104,320	)		—			(104,319	)
Delivery of common stock underlying restricted stock units, net of tax withholding	—		$	—		3,649	$	—		$	(45,885)		$	—	$	(45,885)
Stock-based compensation		—			$	—			42,503			$	4		$	4,500,174		$	—		$	4,500,178
Stock-based compensation	—		$	—		—	$	—		$	1,264,650		$	—	$	1,264,650
Net loss		—			$	—			—			$	—		$	—		$	(12,369,252	)	$	(12,369,252	)
Net loss	—		$	—		—	$	—		$	—		$	(3,486,287)	$	(3,486,287)
Balance at September 30, 2023		45,567			$	5			1,073,815			$	107		$	45,572,237		$	(46,109,268	)	$	(536,919	)
Balance at June 30, 2023	45,567		$	5		904,087	$	90		$	43,325,314		$	(41,060,050)	$	2,265,359

For The Six Months Ended June 30, 2024


							Additional				Total
	Series X Preferred Stock			Common Stock			Paid-in		Accumulated		Stockholders’
	Shares	Amount		Shares	Amount		Capital		Deficit		Equity (Deficit)
Balance at January 1, 2024	45,567	$	5	7,401,242	$	740	$	55,414,069	$	(52,029,741)	$	3,385,073
Issuance of common stock underlying restricted stock units, net of tax withholding	—		—	64,387		7		(15,286)		—		(15,279)
Issuance of common stock converted from prefunded warrants	—		—	314,231		31		(31)		—		—
Stock-based compensation	—		—	—		—		1,513,550		—		1,513,550
Net loss	—		—	—		—		—		(6,690,964)		(6,690,964)
Balance at June 30, 2024	45,567	$	5	7,779,860	$	778	$	56,912,302	$	(58,720,705)	$	(1,807,620)

For The Six Months Ended June 30, 2023


							Additional				Total
	Series X Preferred Stock			Common Stock			Paid-in		Accumulated		Stockholders’
	Shares	Amount		Shares	Amount		Capital		Deficit		Equity (Deficit)
Balance at January 1, 2023	45,567	$	5	707,976	$	71	$	33,848,740	$	(33,740,016)	$	108,800
Reclassification of shares settled liability to equity	—	$	—	1,824	$	—	$	160,949	$	—	$	160,949
Issuance of common stock in connection with equity purchase agreement	—	$	—	151,765	$	15	$	4,770,600	$	—	$	4,770,615
Issuance of common stock warrants in connection with notes payable, net of fees	—	$	—	—	$	—	$	1,155,642	$	—	$	1,155,642
Delivery of common stock underlying restricted stock units, net of tax withholding	—		—	3,649		—		(45,885)		—		(45,885)
Stock-based compensation	—	$	—	38,873	$	4	$	3,435,268	$	—	$	3,435,272
Net loss	—	$	—	—	$	—	$	—	$	(7,320,034)	$	(7,320,034)
Balance at June 30, 2023	45,567	$	5	904,087	$	90	$	43,325,314	$	(41,060,050)	$	2,265,359

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

~~Table~~KUVATRIS THERAPEUTICS, ~~of Contents~~INC.

PAXMEDICA, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)


	Nine Months Ended September 30,
	2024			2023
Cash flows from operating activities
Net loss	$	(7,567,606	)	$	(12,369,252	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation		1,513,550			4,500,178
Change in fair value of notes		—			114,704
Loss on extinguishment of debt		—			394,257
Deferred Revenue		—			500,000
Other Expense		—			91,991
Changes in assets and liabilities:
Prepaid and other current assets		594,238			(1,278,185	)
Accounts receivable		—			(500,000	)
Accounts payable		1,315,506			1,289,488
Accounts payable - related party		—			(20,000	)
Accrued expenses		(858,888	)		(874,411	)
Net cash used in operating activities		(5,003,200	)		(8,151,230	)

Cash flows from financing activities
Proceeds from issuance of common stock and warrants, net of fees		752,692			3,200,000
Proceeds from issuance of convertible promissory notes and warrants		—			(503,696	)
Proceeds from the issuance of common stock in connection with equity purchase agreement		—			5,565,916
Payment of costs from issuance of common stock and warrants		—			—
Payment of costs in connection with equity purchase agreement		—			(195,997	)
Repayment of convertible promissory notes		—			(559,600	)
Settlement of shares withheld for payment of employee taxes		(15,279	)		(104,319	)
Net cash provided by financing activities		737,413			7,402,304

Net change in cash		(4,265,787	)		(748,926	)
Cash, beginning of period		4,710,642			1,901,887
Cash, end of period	$	444,855		$	1,152,961

Non-cash financing activities:
Common stock issued in connection with conversion of notes payable	$	-		$	445,167
Reclassification of shares settled liability	$	—		$	160,949
Unpaid deferred offering costs and financing fees	$	—		$	20,393


	Six Months Ended June 30,
	2024		2023
Cash flows from operating activities
Net loss	$	(6,690,964)	$	(7,320,034)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation		1,513,550		3,435,272
Change in fair value of notes		—		(211,277)
Loss on extinguishment of debt		—		36,850
Deferred Revenue		—		500,000
Other Expense		—		91,991
Changes in assets and liabilities:
Prepaid and other current assets		494,638		(1,271,917)
Accounts receivable		—		(500,000)
Accounts payable		1,211,870		303,203
Accounts payable - related party		—		(20,000)
Accrued expenses		(899,971)		(863,518)
Net cash used in operating activities		(4,370,877)		(5,819,430)

Cash flows from financing activities
Proceeds from issuance of common stock and warrants, net of fees		—		3,200,000
Proceeds from issuance of convertible promissory notes and warrants		—		(503,696)
Proceeds from the issuance of common stock in connection with equity purchase agreement		—		4,770,615
Payment of costs in connection with equity purchase agreement		—		(195,997)
Repayment of convertible promissory notes		—		(237,600)
Settlement of shares withheld for payment of employee taxes		(15,279)		(45,885)
Net cash (used in) provided by financing activities		(15,279)		6,987,437

Net increase in cash		(4,386,156)		1,168,007
Cash, beginning of period		4,710,642		1,901,887
Cash, end of period	$	324,486	$	3,069,894

Non-cash financing activities:
Reclassification of shares settled liability	$	—	$	160,946
Unpaid deferred offering costs and financing fees	$	—	$	20,393

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

~~Table~~KUVATRIS THERAPEUTICS, ~~of Contents~~INC.

PAXMEDICA, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

Note 1. Organization and description of business operations

~~PaxMedica, Inc. (the “~~The Company”) is a clinical stage biopharmaceutical company organized as a Delaware limited liability company on April 5, 2018 to focus on the development of drug candidates for the treatment of autism spectrum disorder (ASD), Fragile X syndrome tremor-ataxia (FXTAS) and Human African Trypanosomiasis (HAT). The Company converted into a Delaware corporation on April 15, 2020.

Going concern, liquidity and capital resources

The Company has no product revenues, has incurred operating losses since inception, and expects to continue to incur significant operating losses for the foreseeable future and may never become profitable. The Company had an accumulated deficit of approximately $5859.76 million at ~~June~~ September 30, 2024, a net loss of approximately $6.7.6 million, and approximately $45.40 million of net cash used in operating activities for the ~~six~~ nine months ended ~~June~~September 30, 2024.

Equity Purchase Agreement with Lincoln Park Capital

On November 17, 2022, the Company entered into an equity purchase agreement (the “Purchase Agreement”) with Lincoln Park Capital Fund, LLC (“LPC”), which provided that, upon the terms and subject to the conditions and limitations set forth therein, the Company could sell to LPC, at its discretion, up to $20.0 million of shares of its common stock over the 30-month term of the Purchase Agreement (See Note 7). During the ~~six~~nine months ended ~~June~~September 30, 2024 there were no shares of common stock issued in connection with the Purchase Agreement. During the ~~six~~nine months ended ~~June~~September 30, 2023, the Company received approximately $45.74 million from the issuance of ~~151,765~~0.2 million shares of common stock to LPC. Due to the ~~recent~~ suspension of the Company from trading on the Nasdaq Capital Market, it iswas no longer permitted to sell shares of the Company’s common stock under the Purchase Agreement. The Purchase Agreement has since lapsed as the Maturity Date was reached on June 1, 2025.

Convertible Promissory Note

As of ~~June~~September 30, 2024, the Company has no outstanding convertible promissory notes. In February 2023, the Company issued a secured convertible promissory note with a principal balance of $3.7 million to Lind Global Fund II LP, together with a common stock purchase warrant to purchase 800,000 shares of common stock (the “2023 Note and Warrant”).

On November 29, 2023, the Company satisfied in full the obligations under this note.

OnSecondary Public ~~November~~Offering ~~29, 2023, the Company satisfied in full the obligations under note.~~

On November 20, 2023, the Company entered into an underwriting agreement relating to the secondary public offering of its common stock. The Company agreed to sell 5,384,615 shares of its common stock with the offering price to the public of $1.30 per share, pursuant to the Company’s registration statement on Form S-1 (File No. 333-275416), as amended, that was filed by the Company under Rule 462(b) under the Securities Act. On November 22, 2023, the Company received net proceeds from its public offering of approximately $6.1 million, net of underwriter fees and commissions of approximately $0.6 million, and offering costs of approximately $0.3 million. In connection with this public offering the Company issued 5,384,615 warrants to purchase shares of common stock with an exercise price of $1.30 per share and issued 215,385 warrants to purchase shares of common stock with an exercise price of $1.625.

The 2023 Note and Warrant contained a price adjustment clause where the exercise and conversion price of the 2023 Note and Warrant would be adjusted to the selling price of an offering if the Company’s common stock is sold at a price below the conversion or exercise price, respectively. As the price of the common stock sold as part of the secondary public offering described herein was below the exercise and conversion price of the Note and Warrant, the terms of the conversion and exercise price were reset to $1.30.

Vox Nova Exclusive Pharmacy Distribution Agreement

On June 30, 2023, the Company entered into an exclusive specialty benefit manager agreement with Vox Nova, LLC (“Vox Nova”) pursuant to which Vox Nova would act as the exclusive United States distributor for the Company’s lead pipeline asset, KV-101 intravenous suramin. Vox Nova provided certain distribution management, pharmacy benefit management, sales and supply monitoring services to the Company with respect to KV-101, in the event KV-101 receives FDA approval. The distribution agreement also provided for an exclusivity fee payable to the Company of up to $2.0 million, payable in installments based on various time and regulatory approval parameters. Vox Nova paid $0.5 million of the exclusivity fee upfront in connection with the signing of the distribution agreement when the distribution right was transferred to Vox Nova. The remaining $1.5 million is due in four equal installments over a one-year 1period after KV-101 is approved by the FDA and made available for distribution.

On June 30, 2023, the Company entered into an exclusive specialty benefit manager agreement with Vox Nova, LLC (“Vox Nova”) pursuant to which Vox Nova will act as the exclusive United States distributor for the Company’s lead pipeline asset, PAX-101 intravenous suramin. Vox Nova will provide certain distribution management, pharmacy benefit management, sales and supply monitoring services to the Company with respect to PAX-101, in the event PAX-101 receives FDA approval. The distribution agreement also provides for an exclusivity fee payable to the Company of up to $2.0 million, payable in installments based on various time and regulatory approval parameters. Vox Nova paid $0.5 million of the exclusivity fee upfront in connection with the signing of the distribution agreement when the distribution right was transferred to Vox Nova. The remaining $1.5 million is due in four equal installments over a one-year period after PAX-101 is approved by the FDA and made available for distribution.

Reverse Stock Split

On October 30, 2023, we filed a Certificate of Amendment to our Certificate of Incorporation (the “Reverse Split Amendment”) with the Secretary of State of the State of Delaware to affect a 1-for-17 reverse stock split of our outstanding common stock (the “Reverse Stock Split”). The Amendment became effective October 30, 2023 (the “Reverse Split Effective Time”). The Reverse Split Amendment was authorized by our stockholders at our special meeting of stockholders on September 26, 2023.

~~Table~~KUVATRIS THERAPEUTICS, ~~of Contents~~INC.

PAXMEDICA, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

Reverse Stock Split

AsOn October a30, ~~result~~2023, ofwe ~~the~~filed ~~Reserve~~a ~~Stock~~Certificate ~~Split,~~of ~~proportionate~~Amendment ~~adjustments~~to ~~have~~our ~~been~~Certificate ~~made~~of toIncorporation (the ~~per~~“Reverse ~~share~~Split ~~exercise~~Amendment”) with ~~price and/or~~ the ~~number~~Secretary of ~~shares~~State ~~issuable~~of ~~upon~~ the ~~exercise~~State ~~or vesting~~ of ~~all~~Delaware ~~stock options and warrants issued and outstanding immediately prior~~ to ~~the~~affect ~~Reverse Split Effective Time, which resulted in~~ a ~~proportionate~~1-for-17 ~~decrease~~reverse instock ~~the~~split ~~number~~ of ~~shares of~~ our outstanding common stock ~~reserved~~(the ~~for~~“Reverse Stock ~~issuance~~Split”). ~~upon~~The ~~exercise~~Amendment orbecame ~~vesting~~effective ofOctober ~~such stock options and warrants~~30, ~~and,~~2023 in (the ~~case~~“Reverse ofSplit ~~stock~~Effective ~~options and warrants, a proportionate increase in the exercise price of all such stock options and warrants~~Time”). InThe ~~addition,~~Reverse ~~the~~Split Amendment ~~number~~was ofauthorized ~~shares~~by ~~reserved~~our ~~for~~stockholders ~~issuance~~at ~~under~~ our ~~Amended~~special ~~and~~meeting ~~Restated~~of ~~2020~~stockholders ~~Equity~~on ~~Incentive~~September ~~Plan~~26, ~~immediately prior to the Reverse Split Effective Time has been reduced proportionately~~2023.

The Reverse Split Amendment provided that, at the Reverse Split Effective Time, every 17 shares of our issued and outstanding common stock were automatically combined into one issued and outstanding share of common stock, without any change in par value per share. The Reverse Stock Split affected all of our shares of common stock outstanding immediately prior to the Reverse Split Effective Time. As a result of the Reserve Stock Split, proportionate adjustments have been made to the per share exercise price and/or the number of shares issuable upon the exercise or vesting of all stock options and warrants issued and outstanding immediately prior to the Reverse Split Effective Time, which resulted in a proportionate decrease in the number of shares of our common stock reserved for issuance upon exercise or vesting of such stock options and warrants, and, in the case of stock options and warrants, a proportionate increase in the exercise price of all such stock options and warrants. In addition, the number of shares reserved for issuance under our Amended and Restated 2020 Equity Incentive Plan immediately prior to the Reverse Split Effective Time has been reduced proportionately.

No fractional shares were issued as a result of the Reverse Stock Split. Stockholders of record who would otherwise have been entitled to receive a fractional share received a number of shares rounded up to the next whole share in lieu thereof. The Reverse Stock Split affected all stockholders proportionately and did not affect any stockholder’s percentage ownership of our common stock (other than the nominal effect of the treatment of fractional shares).

Our common stock began trading on The Nasdaq Capital Market on a split-adjusted basis when the market opened on October 31, 2023.

All share and per share information referenced throughout this Form 10-Q has been retroactively adjusted to reflect the Reverse Stock Split.

~~All share~~ Delisting and ~~per~~Subsequent share information referenced throughout this Form 10-Q has been retroactively adjusted to reflect the Reverse Stock Split. Any fractional shares resulting from the Reverse Stock Split have been rounded up to the nearest whole share.Events

~~Delisting~~On February 28, 2025, the Company entered into the stock purchase agreement with PRV, pursuant to which the Company, on the Issuance Date, issued to PRV 114,754,700 shares of its common stock, which constituted over 90% of the Company’s authorized voting securities as of the Issuance Date. The managing member of PRV is Howard J. Weisman, who is also Chief Executive Officer and Chairman of the Board of the Company. As a holder of greater than ninety percent (90%) of the issued and outstanding voting shares of the Company, PRV intends to execute a short-form merger of the remaining issued and outstanding shares of common stock pursuant to Section 251(h) of the DGCL. Once the short-form merger is complete, the Company will continue to exist as a wholly-owned subsidiary of PRV.

As disclosed in a current report on Form 8-K filed on May 1, 2024, the Company’s common stock was suspended from trading on the Nasdaq Capital Market beginning on May 2, 2024. Since May 2, 2024, the Company’s common stock has been trading on the OTC Pink Market. Once the Company is satisfied that it is in a position to consistently meet listing qualification requirements, it will seek to uplist its common stock to a national securities exchange.

Going Concern

The accompanying condensed financial statements have been prepared assuming the Company will continue to operate as a going concern, which contemplates the realization of assets and settlement of liabilities in the normal course of business, and do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from uncertainty related to its ability to continue as a going concern.

The Company’s future liquidity and capital funding requirements will depend on numerous factors, including:

● its ability to raise additional funds to finance its operations;

● the outcome, costs and timing of clinical trial results for the Company’s current or future product candidates;

● the emergence and effect of competing or complementary products;

● its ability to maintain, expand and defend the scope of its intellectual property portfolio, including the amount and timing of any payments the Company may be required to make, or that it may receive, in connection with the licensing, filing, prosecution, defense and enforcement of any patents or other intellectual property rights;

● its ability to retain its current employees and the need and ability to hire additional management and scientific and medical personnel; and

● the terms and timing of any collaborative, licensing or other arrangements that it has or may establish.

~~Table~~KUVATRIS THERAPEUTICS, ~~of Contents~~INC.

PAXMEDICA, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

The Company’s future liquidity and capital funding requirements will depend on numerous factors, including:

	●	its ability to raise additional funds to finance its operations;

	●	the outcome, costs and timing of clinical trial results for the Company’s current or future product candidates;

	●	the emergence and effect of competing or complementary products;

	●	its ability to maintain, expand and defend the scope of its intellectual property portfolio, including the amount and timing of any payments the Company may be required to make, or that it may receive, in connection with the licensing, filing, prosecution, defense and enforcement of any patents or other intellectual property rights;

	●	its ability to retain its current employees and the need and ability to hire additional management and scientific and medical personnel; and

	●	the terms and timing of any collaborative, licensing or other arrangements that it has or may establish.

The Company will likely need to raise substantial additional funds through one or more of the following: issuance of additional debt or equity, or the completion of a licensing transaction for one or more of the Company’s pipeline assets. If the Company is unable to maintain sufficient financial resources, its business, financial condition and results of operations will be materially and adversely affected. This could affect future development and business activities and potential future clinical studies and/or other future ventures. Failure to obtain additional equity or debt financing will have a material, adverse impact on the Company’s business operations. There can be no assurance that the Company will be able to obtain the needed financing on acceptable terms or at all. Additionally, equity or convertible debt financings will likely have a dilutive effect on the holdings of the Company’s existing stockholders. Accordingly, there are material risks and uncertainties that raise substantial doubt about the Company’s ability to continue as a going concern for the next twelve months from the issuance of these condensed financial statements.

Note 2. Basis of Presentation, Summary of Significant Accounting Policies and Recent Accounting Pronouncements

Basis of presentation

The accompanying unaudited condensed financial statements are presented in U.S. dollars and in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP. In the opinion of management, the unaudited condensed financial statements reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the balances and results for the periods presented. The results of operations for the interim periods presented are not necessarily indicative of results to be expected for any other interim period or for the year as a whole.

The accompanying unaudited condensed financial statements should be read in conjunction with the financial statements for the year ended December 31, 2023 and notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on March 11, 2024 (the “2023 Annual Report”).

Use of estimates

The preparation of 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 expenses during the reporting period. The most significant estimates in the Company’s condensed financial statements relate to the valuation of convertible notes, valuation of warrants, and valuation of equity-based awards. These estimates and assumptions are based on current facts, historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily apparent from other sources. Actual results may differ materially and adversely from these estimates. To the extent there are material differences between the estimates and actual results, the Company’s future results of operations will be affected.

KUVATRIS THERAPEUTICS, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

Significant Accounting Policies:

For a detailed discussion about the Company’s significant accounting policies, see Note 3 of the Company’s audited financial statements included in its 2023 Annual Report.

Concentrations of cash, cash equivalents and short-term investments

The Company considers all highly liquid investments with an original maturity of three months or less at the date of acquisition to be cash equivalents. As of September 30, 2024 and December 31, 2023, the Company had no cash equivalents or short-term investments.

The Company considers all highly liquid investments with an original maturity of three months or less at the date of acquisition to be cash equivalents. As of June 30, 2024 and December 31, 2023, the Company had no cash equivalents or short-term investments.

Financial instruments that potentially subject the Company to the concentration of credit risk consist primarily of cash. The Company maintains its cash at high credit quality financial institutions, which may at times, be in excess of federal insured limits. The Company believes it is not exposed to any significant losses due to credit risk on cash.

Table of Contents

PAXMEDICA, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

Fair value of financial instruments

The Company accounts for financial instruments under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 820, Fair Value Measurements (“ASC 820”). This statement defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements, ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels as follows:

Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 - observable inputs other than Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable; and

Level 3 - assets and liabilities whose significant value drivers are unobservable.

Observable inputs are based on market data obtained from independent sources, while unobservable inputs are based on the Company’s market assumptions. Unobservable inputs require significant management judgment or estimation. In some cases, the inputs used to measure an asset or liability may fall into different levels of the fair value hierarchy. In those instances, the fair value measurement is required to be classified using the lowest level of input that is significant to the fair value measurement. Such determination requires significant management judgment. During the period ended March 31, 2023, the Company issued a convertible promissory note and a common stock purchase warrant in connection with it. The note was classified as a liability and measured at fair value on the issuance date, with changes in fair value to be recognized as other expense on the statements of operations and disclosed in the condensed financial statements. The carrying amounts of the Company’s financial assets and liabilities, such as accounts payable, approximate fair value due to the short-term nature of these instruments.

KUVATRIS THERAPEUTICS, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

Revenue Recognition

The Company follows the provisions of Accounting Standards Codification 606, Revenue from Contracts with Customers (“ASC 606”). The guidance provides a five-step model to determine how revenue is recognized. In determining the appropriate amount of revenue to be recognized, the Company performs the following steps: (i) identification of the contracts with a customer; (ii) determination of the performance obligations in the contract; (iii) measurement of the transaction price, including potential constraints on variable consideration; (iv) allocation of the transaction price to the performance obligations based on estimated stand-alone selling prices; and (v) recognition of revenue when (or as) the Company satisfies a performance obligation. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in ASC 606. Significant management judgment is required to determine the level of effort required under an arrangement and the period over which the Company expects to complete its performance obligations under the arrangement. If the Company cannot reasonably estimate when its performance obligations are either completed or become inconsequential, then revenue recognition is deferred until the Company can reasonably make such estimates. Revenue is then recognized over the remaining estimated period of performance or contract-term using the cumulative catch-up method. The Company allocates the total transaction price to each performance obligation based on the relative standalone selling prices of the promised goods or service underlying each performance obligation.

Research and Development

Research and development costs are expensed as incurred. Advance payments for goods and services that will be used in future research and development activities are expensed when the activity has been performed or when the goods have been received.

Accrued Outsourcing Costs

Substantial portions of the Company’s preclinical studies and clinical trials are performed by third-party laboratories, medical centers, contract research organizations and other vendors (collectively “CROs”). These CROs generally bill monthly or quarterly for services performed, or bill based upon milestone achievement. For preclinical studies, the Company accrues expenses based upon estimated percentage of work completed and the contract milestones remaining. Clinical trial costs are a significant component of research and development expenses and include costs associated with third-party contractors. The Company outsources a substantial portion of its clinical trial activities, utilizing external entities such as CROs, independent clinical investigators, and other third-party service providers to assist the Company with the execution of its clinical studies. For each clinical trial that the Company conducts, certain clinical trial costs are expensed immediately, while others are expensed over time based on the number of patients in the trial, the attrition rate at which patients leave the trial, and/or the period over which clinical investigators or CROs are expected to provide services. The Company’s estimates depend on the timeliness and accuracy of the data provided by the CROs regarding the status of each program and total program spending. The Company periodically evaluates the estimates to determine if adjustments are necessary or appropriate based on information it receives.

Table of Contents

PAXMEDICA, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

development expenses and include costs associated with third-party contractors. The Company outsources a substantial portion of its clinical trial activities, utilizing external entities such as CROs, independent clinical investigators, and other third-party service providers to assist the Company with the execution of its clinical studies. For each clinical trial that the Company conducts, certain clinical trial costs are expensed immediately, while others are expensed over time based on the number of patients in the trial, the attrition rate at which patients leave the trial, and/or the period over which clinical investigators or CROs are expected to provide services. The Company’s estimates depend on the timeliness and accuracy of the data provided by the CROs regarding the status of each program and total program spending. The Company periodically evaluates the estimates to determine if adjustments are necessary or appropriate based on information it receives.

Stock-Based Compensation

The Company expenses stock-based compensation to employees, non-employees and board members over the requisite service period based on the estimated grant-date fair value of the awards and actual forfeitures. The Company accounts for forfeitures as they occur. Stock-based awards with graded vesting schedules are recognized on a straight-line basis over the requisite service period for each separately vesting portion of the award. The Company estimates the fair value of stock option grants using the Black-Scholes option pricing model, and the assumptions used in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment. All stock-based compensation costs are recorded in general and administrative costs in the statements of operations.

Loss Per Share

Basic net loss per share of common stock is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. Basic and diluted net loss per common share were the same since the inclusion of common shares issuable pursuant to the exercise of options and warrants in the calculation of diluted net loss per common shares would have been anti-dilutive.

The following securities were excluded from the computation of diluted net loss per share attributable to common shareholders for the three and six months ended June 30, 2024 and 2023, because including them would have been anti-dilutive:


	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
Series X preferred stock	51,055	51,055	51,055	51,055
Unvested restricted stock units	1,471	112,689	1,471	112,689
Pre-funded common stock warrants	314,231	—	—	—
Common stock warrants	5,681,623	81,613	5,681,623	81,613
Convertible Notes	—	125,929	—	125,929
Shares Settled Liability	—	—	—	—
Total	6,048,380	371,286	5,734,149	371,286

Income taxes

Accounting Standards Codification 740, Income Taxes (“ASC 740”), also provides guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition. Based on the Company’s evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Company’s condensed financial statements. The Company believes that its income tax positions and deductions would be sustained on audit and does not anticipate any adjustments that would result in material changes to its financial position.

~~Table~~KUVATRIS THERAPEUTICS, ~~of Contents~~INC.

PAXMEDICA, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

The following securities were excluded from the computation of diluted net loss per share attributable to common shareholders for the three and nine months ended September 30, 2024 and 2023, because including them would have been anti-dilutive:

	2024		2023		2024		2023
	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Series X preferred stock		51,055		51,055		51,055		51,055
Unvested restricted stock units		1,471		95,504		1,471		95,504
Common stock warrants		10,281,626		81,623		10,281,626		81,623
Convertible Notes		—		669,173		—		669,173
Total		10,334,152		897,356		10,334,152		897,356

Net loss attributable to common stockholders consists of net loss, as adjusted for deemed dividends. The Company recorded a deemed dividend for the modification of existing warrants of approximately $53,000 for the three and nine months ended September 30, 2024, respectively (Note 7). The deemed dividend is added to net loss in determining the net loss available to common stockholders.

Income taxes

Accounting Standards Codification 740, Income Taxes (“ASC 740”), also provides guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition. Based on the Company’s evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Company’s condensed financial statements. The Company believes that its income tax positions and deductions would be sustained on audit and does not anticipate any adjustments that would result in material changes to its financial position.

Critical Accounting Estimates

We prepare our consolidated financial statements in accordance with GAAP, which require our management to make estimates that affect the reported amounts of assets, liabilities and disclosures of contingent assets and liabilities at the balance sheet dates, as well as the reported amounts of revenues and expenses during the reporting periods. To the extent that there are material differences between these estimates and actual results, our financial condition or results of operations would be affected. We base our estimates on our own historical experience and other assumptions that we believe are reasonable after taking account of our circumstances and expectations for the future based on available information. We evaluate these estimates on an ongoing basis.

We consider an accounting estimate to be critical if: (i) the accounting estimate requires us to make assumptions about matters that were highly uncertain at the time the accounting estimate was made, and (ii) changes in the estimate that are reasonably likely to occur from period to period or use of different estimates that we reasonably could have used in the current period, would have a material impact on our financial condition or results of operations. There are items within our financial statements that require estimation but are not deemed critical, as defined above.

Recent accounting pronouncements

In November ~~December~~ 2023, the FASB issued ~~Accounting~~ASU ~~Standards Update~~ 2023-~~09, Income~~07 ~~Taxes~~“Segment Reporting (Topic ~~740~~280): Improvements to ~~Income~~Reportable ~~Tax~~Segment Disclosures ~~(“ASU 2023-09~~”) to expand the disclosure requirements for reportable segments. The ~~guidance~~standard inexpands ~~ASU~~reportable ~~2023-09~~segment ~~improves~~disclosure ~~the~~requirements ~~transparency~~for ofpublic business ~~income~~entities ~~tax~~primarily through enhanced disclosures byabout ~~greater~~significant ~~disaggregation~~segment ofexpenses ~~information~~that inare regularly provided to the ~~rate~~chief operating ~~reconciliation~~decision maker (“CODM”) and ~~income~~included ~~taxes~~within ~~paid~~each ~~disaggregated~~reported bymeasure ~~jurisdiction~~of segment operating profit (loss). ~~The~~This standard is ~~becomes~~ effective for ~~the~~fiscal ~~annual~~years ~~period~~ beginning onafter ~~January~~December 115, ~~2025,~~2023 ~~with~~and ~~early~~interim ~~adoption~~periods ~~permitted~~within fiscal years beginning after December 15, 2024. The Company is currently evaluating the ~~impact~~effect that ~~the~~ adoption of ~~ASU~~this ~~2023-09~~standard ~~may~~will have on ~~its~~the ~~consolidated~~Company’s ~~financial statements~~disclosures.

In December 2023, the FASB issued Accounting Standards Update 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). The guidance in ASU 2023-09 improves the transparency of income tax disclosures by greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. The standard becomes effective for the annual period beginning on January 1, 2025, with early adoption permitted. The Company is currently evaluating the impact that the adoption of ASU 2023-09 may have on its financial statements.

KUVATRIS THERAPEUTICS, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

In November 2024, the FASB issued ASU 2024-03 “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” which requires public entities to disclose specified information about certain costs and expenses. ASU 2024-03 is effective for the Company’s annual reporting period beginning January 1, 2027 and interim reporting periods beginning January 1, 2028, with early adoption permitted. The Company is currently evaluating the impact that ASU 2024-03 will have on its financial statements.

Correction of Immaterial Classification Error

Certain reclassifications have been made to prior period amounts to conform to the current period financial statement presentation. These reclassifications had no effect on the previously reported results of operations or loss per share.

Note 3. Fair Value Measurements

Convertible Notes

During the ~~six~~nine months ended ~~June~~September 30, 2023, the Company issued athe ~~secured~~2023 ~~convertible~~Note ~~promissory note~~ with a principal balance of $3.7 million. The fair value of the ~~note~~2023 Note on ~~June~~September 30, 2023 was estimated using a Monte Carlo simulation to capture the path dependencies intrinsic to their terms. The significant unobservable inputs used in the fair value measurement of the Company’s convertible notes would be the common stock price, volatility, and risk-free interest rates. Significant changes in these inputs may result in significantly lower or higher fair value measurement. The Company elected the fair value option when recording the ~~note it issued in~~ 2023 Note. The ~~notes~~2023 ~~were~~Notes was classified as a liability and measured at fair value on the issuance date, with any changes in fair value to be recognized as other income (expense) on the statements of operations and disclosed in the condensed financial statements. During the nine months ended September 30, 2023, the Company paid down the remaining balance of the 2023 Note and there are no other notes outstanding as of September 30, 2024.

10As of September 30, 2024 and December 31, 2023, the Company did not have any outstanding liabilities measured at fair value on a recurring basis.

~~Table~~A summary of ~~Contents~~significant unobservable inputs (Level 3 inputs) used in measuring the 2023 Note upon its issuance date is as follows:

~~PAXMEDICA,~~ Summary of ~~INC.~~Significant Unobservable Inputs (Level 3 inputs) Used in Measurement upon Issuance Dates

	February 6, 2023			September 30, 2023
Dividend yield		—	%		—	%
Expected price volatility		30.0 - 53.7	%		30.0	%
Risk free interest rate		4.65 - 4.89	%		5.35	%
Expected term (in years)		0.5 - 1.4			0.1 - 1.0

The following table presents changes in Level 3 liabilities measured at fair value for the nine months ended September 30, 2023. Unobservable inputs were used to determine the fair value of positions that the Company has classified within the Level 3 category. Unrealized gains and losses associated with liabilities within the Level 3 category include changes in fair value that were attributable to unobservable (e.g., changes in unobservable long-dated volatilities) inputs.

There were no liabilities measured at fair value on a recurring basis into the fair value hierarchy as of September 30, 2024.

	Convertible Notes
Balance at December 31, 2022	$	173,543
Issuance of convertible notes		1,903,531
Issuance of common stock in connections with conversion of notes payables		(445,167	)
Repayment of convertible notes		(559,600	)
Loss on extinguishment of debt		394,257
Change in fair value		114,704
Balance at September 30, 2023	$	1,581,268

KUVATRIS THERAPEUTICS, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

income (expense) on the statements of operations and disclosed in the condensed financial statements. During the six months ended June 30, 2023, the Company paid down the remaining balance of this note and there are no other notes outstanding as of June 30, 2024.

As of June 30, 2024 and December 31, 2023, the Company did not have any outstanding liabilities measured at fair value on a recurring basis.

A summary of significant unobservable inputs (Level 3 inputs) used in measuring the note issued in February 2023 upon its issuance date is as follows:


	February 6, 2023		June 30, 2023
Dividend yield	—	%	—	%
Expected price volatility	30.0 - 53.7	%	30.0	%
Risk free interest rate	4.65 - 4.89	%	5.35	%
Expected term (in years)	0.5 - 1.4		0.1 - 1.0

The following table presents changes in Level 3 liabilities measured at fair value for the six months ended June 30, 2023. Unobservable inputs were used to determine the fair value of positions that the Company has classified within the Level 3 category. Unrealized gains and losses associated with liabilities within the Level 3 category include changes in fair value that were attributable to unobservable (e.g., changes in unobservable long-dated volatilities) inputs.

There were no liabilities measured at fair value on a recurring basis into the fair value hierarchy as of June 30, 2024.


	Convertible Notes
Balance at December 31, 2022	$	173,543
Issuance of convertible notes		1,903,531
Repayment of convertible notes		(237,600)
Loss on extinguishment of debt		36,850
Change in fair value		(211,277)
Balance at June 30, 2023	$	1,665,047

Note 4. Prepaid and other current assets

As of ~~June~~September 30, 2024, the Company recorded prepaid expenses and other current assets of approximately $0.54 million, primarily consisting of services to be performed for research and development activities of approximately $0.4 million~~, and legal and professional services of approximately $0~~.~~1 million.~~ As of December 31, 2023, ~~prepaid~~the ~~and~~Company had ~~other~~paid ~~current assets totaled~~ approximately $1.0.3 million, ~~primarily~~for ~~consisting~~professional of services toand bepaid ~~performed~~approximately ~~for~~$0.7 million in research and development activities.

Note 5. Convertible promissory notes

As of ~~June~~September 30, 2024, the Company has no outstanding convertible promissory notes. In February 2023, the Company issued athe ~~secured~~2023 ~~convertible promissory note with a principal balance of $3~~Note.7 ~~million to Lind Global Fund II LP.~~ On November 29, 2023, the Company satisfied in full the obligations under this note.

Table of Contents

PAXMEDICA, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

Note 6. Stock-based compensation

Stock-based Compensation

The following is a summary of stock-based compensation during the three and ~~six~~nine months ended ~~June~~September 30, 2024 and 2023:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Canceled stock options	$	151	$	44,768	$	5,434	$	110,671
Restricted stock units		—		1,219,882		1,508,116		3,324,601
Total	$	151	$	1,264,650	$	1,513,550	$	3,435,272

Schedule of share-based compensation

	2024		2023		2024		2023
	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Canceled stock options	$	—	$	30,242	$	5,434	$	140,913
Restricted stock units		—		1,034,664		1,508,116		4,359,265
Total	$	—	$	1,064,906	$	1,513,550	$	4,500,178

Restricted Stock Units

The following is a summary of the restricted stock units during the ~~six~~ nine months ended ~~June~~ September 30, 2024:

Summary of changes in restricted stock units


					Weighted Average
			Weighted Average
					Grant-Date
			Grant-Date
	Number of Units				Fair Value
	Number of Units		Fair Value
Unvested as of December 31, 2023		86,749			$	48.12
Unvested as of December 31, 2023	86,749		$	48.12
Granted		—				-
Granted	—			-
Vested		(85,278	)			48.26
Vested	(85,278)			48.26
Unvested as of September 30, 2024		1,471			$	40.46
Unvested as of June 30, 2024	1,471		$	40.46

No restricted stock units (RSUs) were granted during the nine months ended September 30, 2024. During the nine months ended September 30, 2023, the Company granted 47,771 time-based RSUs with a fair value of $1.5 million to members of its board of directors and employees of the Company. On January 24, 2024, to reduce the administrative burden and expense associated with monthly vesting, the Company approved the acceleration of vesting of certain RSUs of the Company. The RSUs fully vested on the day following the filing with the SEC of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, in each case subject to the continued employment of the officer with the Company, through such date.

~~No restricted stock units (RSUs) were granted during~~ During the ~~six~~nine-month ~~months~~period ended ~~June~~September 30, 2024~~. During the six months ended June 30~~, ~~2023,~~ the Company ~~granted~~recorded ~~47,765 time~~stock-based ~~RSUs~~compensation ~~with~~expense arelated ~~fair~~to ~~value~~the RSUs of approximately $1.5 million ~~to members of its board of directors and employees of the Company~~. OnDue ~~January 24, 2024,~~ to ~~reduce~~ the ~~administrative~~accelerated ~~burden and expense associated with monthly~~ vesting, ~~the Company approved the acceleration~~ of ~~vesting of certain RSUs of~~ the ~~Company. The~~ RSUs ~~fully~~there ~~vested~~is oncurrently ~~the~~no ~~day~~unamortized ~~following~~stock ~~the~~based ~~filing~~compensation with the SEC of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, in each case subject to the continued employment of the officer with the Company, through such dateremaining.

During the ~~six~~nine-month period ended ~~June~~September 30, ~~2024~~2023, the Company recorded stock-based compensation expense related to the RSUs of approximately $14.54 million. ~~Due to the accelerated vesting of the RSUs there is currently no unamortized stock based compensation remaining.~~

During the six-month period ended June 30, 2023, the Company recorded stock-based compensation expense related to the RSUs of approximately $3.3 million.

Performance-based Restricted Stock Units

As of June 30, 2024, and 2023, there were 1,471 performance-based RSUs with a fair value of approximately $60,000 outstanding. The RSUs are subject to a performance condition, and will vest upon the Company signing a definitive agreement with a strategic partner. No performance-based RSUs were issued during the six months ended June 30, 2024.

As of June 30, 2024, the Company determined that was not probable that the performance awards would vest, and the Company has not recognized any stock-based compensation expense associated with these awards to date.

Canceled Stock Options

The Company previously granted options to purchase shares of the Company’s common stock and during the year ended December 31, 2020 these options were canceled in exchange for RSUs. No stock options were outstanding as of June 30, 2024 and 2023.

During the three months ended June 30, 2024 and 2023, the Company recorded stock-based compensation expense related to the cancelled stock options of less than $0.1 million and less than $0.1 million, respectively. During the six months ended June 30, 2024

~~Table~~KUVATRIS THERAPEUTICS, ~~of Contents~~INC.

PAXMEDICA, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

Performance-based Restricted Stock Units

As of September 30, 2024, and 2023, ~~the~~there ~~Company~~were ~~recorded~~1,471 ~~stock~~performance-based ~~compensation~~RSUs ~~expense~~with ~~related~~a fair value of approximately $60,000 outstanding. The RSUs are subject to a performance condition, and will vest upon the ~~canceled~~Company ~~stock~~signing ~~options~~a ofdefinitive ~~less~~agreement ~~than~~with $0a strategic partner.1 No ~~million~~performance-based ~~and~~RSUs ~~approximately~~were ~~$0.1~~issued ~~million~~during the nine months ended September 30, ~~respectively~~2024.

As of September 30, 2024, the Company determined that it was not probable that the performance awards would vest, and the Company has not recognized any stock-based compensation expense associated with these awards to date.

Canceled Stock Options

The Company previously granted options to purchase shares of the Company’s common stock and during the year ended December 31, 2020, these options were canceled in exchange for RSUs. No stock options were outstanding as of September 30, 2024 and 2023.

During the three months ended September 30, 2024, the Company recorded no stock-based compensation related to the cancelled stock options and during the three months ended September 30, 2023, the Company recorded stock-based compensation expense related to the cancelled stock options of less than $0.1 million, respectively. During the nine months ended September 30, 2024 and 2023, the Company recorded stock-based compensation expense related to the canceled stock options of less than $0.1 million and approximately $0.1 million, respectively.

Note 7. Preferred and common stock

Series X Preferred Stock

There were no shares of Series X preferred stock issued during the ~~six~~nine months ended ~~June~~September 30, 2024 and 2023. As of ~~June~~September 30, 2024, there were 45,567 shares of Series X preferred stock outstanding.

Common Stock

On November 17, 2022, the Company entered into ~~an equity purchase agreement (~~the “Purchase Agreement”) with LPC which provided that, upon the terms and subject to the conditions and limitations set forth therein, the Company could sell to LPC, at its discretion, up to $20.0 million of shares of its common stock over the 30-month term of the Purchase Agreement.

During the three months ended September 30, 2024, there were no shares of common stock issued in connection with the Purchase Agreement. During the three months ended September 30, 2023, the Company issued approximately 0.2 million shares of common stock, receiving net proceeds of approximately $5.4 million. During the nine months ended September 30, 2024, there were no shares of common stock issued in connection with the Purchase Agreement. During the nine months ended September 30, 2023, the Company issued 0.2 million shares of common stock, receiving net proceeds of approximately $5.4 million net of fees of approximately $0.2 million.

During the three ~~months~~and ~~ended~~nine ~~June 30, 2024, there were no shares of common stock issued in connection with the Purchase Agreement. During the three~~ months ended ~~June~~September 30, ~~2023~~2024, the Company issued 81314,~~170~~231 shares of common stock, ~~receiving~~in ~~net~~to ~~proceeds~~settle ofpre-funded ~~approximately~~warrants that ~~$2.0~~were ~~million~~exercised. During the ~~six~~three ~~months~~and ~~ended~~nine ~~June 30, 2024, there were no shares of common stock issued in connection with the Purchase Agreement. During the six~~ months ended ~~June~~September 30, 2023, ~~the~~no ~~Company~~pre-funded ~~issued~~warrants ~~151,765 shares of common stock, receiving net proceeds of approximately $4~~existed.~~6 million net of fees of approximately $0.2 million.~~

During the three months ended September 30, 2024, the Company issued no shares of its common stock in connection with the vesting of RSUs. During the three months ended September 30, 2023, the Company issued 18,958 shares of its common stock in connection with the vesting of RSUs held by members of the Company’s board of directors and employees. The Company withheld 2,702 of these shares, at a fair value of less than $0.1 million, to cover the withholding taxes related to the settlement of these vested RSUs.

During the ~~three~~nine ~~and six~~ months ended ~~June~~September 30, 2024, the Company issued ~~314~~87,~~231~~049 shares of its common stock in connection with the vesting of RSUs issued to ~~settle~~members ~~pre-funded~~of ~~warrants~~the ~~that~~Company’s ~~were~~board ~~exercised~~of directors and employees. ~~During~~The Company withheld 22,662 of these shares, at a fair value of less than $0.1 million, to cover the ~~three~~withholding ~~and~~taxes ~~six~~related to the settlement of these vested RSUs. During the nine months ended September ~~June~~ 30, ~~2024~~2023, nothe ~~pre-funded~~Company ~~warrants~~issued ~~existed~~63,160 shares of its common stock in connection with the vesting of RSUs issued to members of the Company’s board of directors and employees. The Company withheld 4,385 of these shares at a fair value of less than $0.1 million, to cover the withholding taxes related to the settlement of these vested RSUs.

~~During the three months ended June 30~~KUVATRIS THERAPEUTICS, ~~2024, the Company issued no shares of its common stock in connection with the vesting of RSUs~~INC. During the three months ended June 30, 2023, the Company issued 5,328 shares of its common stock in connection with the vesting of RSUs held by members of the Company’s board of directors and employees. The Company withheld 1,679 of these shares, at a fair value of less than $0.1 million, to cover the withholding taxes related to the settlement of these vested RSUs.

NOTES TO CONDENSED FINANCIAL STATEMENTS

~~During~~On September ~~the six months ended June 30~~3, 2024, the Company ~~issued~~entered ~~87,049~~into ~~shares~~warrant ofinducement ~~its~~offers ~~common stock in connection~~ with the ~~vesting~~holders of ~~RSUs~~approximately ~~issued~~4.4 tomillion ~~members~~existing warrants of the Company’s. ~~board~~The ofinducement ~~directors~~offers ~~and~~provided ~~employees.~~for ~~The~~the ~~Company~~reduction ~~withheld 22,662~~ of ~~these~~the ~~shares,~~exercise atprice aof ~~fair~~the ~~value~~warrants offrom ~~less~~$1.30 ~~than~~to $0.120. ~~million,~~The toholders immediately ~~cover~~exercised ~~the~~those ~~withholding~~warrants ~~taxes~~for ~~related~~proceeds toof ~~the~~approximately ~~settlement~~$0.8 ofmillion, ~~these~~net ~~vested~~of ~~RSUs~~fees. During the ~~six~~three and nine months ended September ~~June~~ 30, ~~2023~~2024, the Company issued 443,~~201~~099,310 shares of ~~its~~ common stock inas ~~connection~~a ~~with~~result of the ~~vesting~~warrant ofexercise. ~~RSUs~~In ~~issued~~conjunction towith ~~members~~the financing of the Company’s ~~board~~also ofissued ~~directors~~176,923 ~~and~~warrants, ~~employees.~~with ~~The~~an ~~Company~~exercise ~~withheld~~price 1of $0.25,~~679~~ ofto ~~these~~the ~~shares~~underwriter. atDuring athe ~~fair~~three ~~value~~and ofnine ~~less~~months ended ~~than~~September ~~$0.1~~30, ~~million~~2023, tothe ~~cover~~Company ~~the~~issued ~~withholding~~no ~~taxes~~shares ~~related~~of toits ~~the~~common ~~settlement~~stock ofin ~~these~~connection ~~vested~~with ~~RSUs~~warrants.

Pursuant to the terms of the warrant inducement offers, in the event that the exercise of the existing warrants would cause a holder to exceed the beneficial ownership limitations included therein, the Company would issue the number of shares of common stock that would not cause a holder to exceed such beneficial ownership limitations and hold the remaining balance of shares of common stock in abeyance. Accordingly, as of September 30, 2024, the Company held an aggregate of 1,323,770 shares of common stock in abeyance (the “Abeyance Shares”). The Abeyance Shares are evidenced through the holder’s existing warrants, which are deemed to be prepaid. The Abeyance Shares will be held by the Company until the holder sends notice that the remaining balance of shares of common stock may be issued without surpassing the beneficial ownership limitations. Until such time, the Abeyance Shares are evidenced through the holder’s existing warrants and are included in the Company’s outstanding warrants. In October 2024, another 433,000 shares of common stock were issued from the Abeyance Shares.

The Company accounted for the warrant inducement under ASC 815-40-35, “Issuer’s Accounting for Modifications or Exchanges of Freestanding Equity-Classified Written Call Options,” and determined that the effect of the modification was directly attributable to raising additional capital and accounted for the modification as an equity issuance cost. As a result of the warrant inducement offer, the Company recorded a deemed dividend of approximately $53,000 for the three and nine months ended September 30, 2024, representing the incremental fair value of the modified warrants. The deemed dividend was included in net loss attributable to common stockholders in the calculation of net loss per share in the condensed statements of operations.

The modified warrants were valued on the date of the warrant inducement offer using the Black-Scholes model based on the following assumptions:

Summary of warrant inducement

Dividend yield	—	%
Expected price volatility	172	%
Risk free interest rate	3.6	%
Expected term (in years)	4.21

In conjunction with the warrant inducement offers, the Company entered into new warrant agreements with the same holders to purchase an aggregate of 8.8 million shares of common stock for an exercise price of $0.20. In conjunction with the financing the Company also issued 176,923 warrants, with an exercise price of $0.25, to the underwriter. The Company determined the new warrants were freestanding equity contracts that met the criteria in ASC 815-40 to be classified within permanent equity.

Note 8. Commitments and contingencies

Litigation

As of ~~June~~September 30, 2024 and December 31, 2023, there was no litigation against the Company. The Company may be involved in legal proceedings, claims and assessments arising from the ordinary course of business. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance.

~~Note 9. Related party transactions~~14

~~Expenses – During the three-month periods ended June 30~~KUVATRIS THERAPEUTICS, 2024 and 2023, the Company expensed $95,000 and $60,000, respectively, for aggregate fees owed to TardiMed Sciences, LLC (“TardiMed”), pursuant to rental and consulting agreements entered into between the Company and TardiMedINC. For more information about these agreements, please see “Certain Relationships and Related Party Transactions” in the Company’s definitive proxy statement on Schedule 14A filed with the SEC on April 15, 2024. During the six-

Table of Contents

PAXMEDICA, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

Subsequent Event: In January 2025, a complaint was filed against the Company and its Chief Executive Officer, please see Note 10 below.

~~month~~Note ~~periods~~9. ~~ended~~Related ~~June~~party ~~30, 2024 and 2023, the Company expensed $210,000 and $120,000, respectively, for aggregate fees owed to TardiMed.~~transactions

Expenses – During the three-month periods ended September 30, 2024 and 2023, the Company expensed $65,000 and $87,500, respectively, for aggregate fees owed to TardiMed Sciences, LLC (“TardiMed”), pursuant to rental and consulting agreements entered into between the Company and TardiMed. For more information about these agreements, please see “Certain Relationships and Related Party Transactions” in the Company’s definitive proxy statement on Schedule 14A filed with the SEC on April 15, 2024. During the nine-month periods ended September 30, 2024 and 2023, the Company expensed $175,000 and $180,000, respectively, for aggregate fees owed to TardiMed.

In April 2023, TardiMed disposed of its equity position in the Company, at which time it ceased to be a related party. Subsequently, in August 2024, the Company and TardiMed mutually terminated the aforementioned rental and consulting agreements. As of the date of this filing, no further obligations remain under these agreements.

Note 10. Subsequent events

OnIn January ~~September 3~~2025, ~~2024~~a ~~the~~complaint ~~Company~~was ~~entered~~filed ~~into~~against ~~definitive agreements (~~the ~~“Agreements”)~~Company ~~with~~and ~~the~~its ~~holders~~Chief ofExecutive ~~warrants~~Officer in the ~~Company~~U.S. ~~issued~~District asCourt ~~part~~for ofthe aNorthern ~~registered~~District of ~~offering~~Ohio. onThe orcomplaint ~~around~~involves ~~November~~claims ~~20,~~by ~~2023~~former ~~(the~~business ~~“Warrants”)~~partners relating to ~~immediately exercise those Warrants at~~ a ~~reduced~~prior ~~exercise~~distribution ~~price~~agreement ~~of $0.20~~ and ~~purchase~~certain anequity ~~aggregate~~investments. The ofCompany ~~approximately~~believes ~~4.4~~these ~~million~~claims ~~shares~~are ofwithout ~~the~~merit ~~Company’s~~and ~~common~~intends ~~stock~~to ~~for~~vigorously ~~approximately~~dispute ~~$0.8~~and ~~million,~~defend ~~net~~against ~~of fees~~them. The ~~issuance~~Company ofmaintained Directors ~~the~~and ~~common~~Officers ~~stock~~(D&O) ~~underlying~~liability ~~the~~insurance, ~~Warrants~~including ~~was~~“Side ~~registered~~A” ~~pursuant~~coverage, towhich ~~that~~it ~~certain~~believes ~~registration~~is ~~statement~~applicable onto ~~Form~~this matter. ~~S-1,~~At ~~File~~this ~~No.~~preliminary ~~333-275416~~stage, ~~which~~the ~~was~~Company ~~declared~~is ~~effective~~unable byto predict the ~~SEC~~outcome onof ~~November~~this ~~20,~~proceeding ~~2023.~~or ~~The~~estimate ~~Agreements~~a ~~also~~range ~~provided~~of ~~that~~potential loss; however, the Company ~~would~~does ~~issue~~not ~~new~~believe ~~warrants~~the toultimate ~~the~~resolution ~~same~~will ~~holders~~have toa ~~purchase~~material anadverse ~~aggregate~~effect ofon ~~approximately~~its ~~8.8~~consolidated ~~million~~financial ~~shares~~position, results of ~~common~~operations, ~~stock~~or atcash ~~an exercise price of $0~~flows.~~20.~~

On February 28, 2025, the Company entered into a stock purchase agreement with PRV, pursuant to which the Company, on the Issuance Date issued to PRV 114,754,700 shares of its common stock, which constituted over 90% of the Company’s authorized voting securities as of the Issuance Date. This issuance of common stock was made in reliance on the exemption from registration available under Rule 506(c) of Regulation D of the Securities Act, and was authorized prior to the Issuance Date by unanimous written consent of the Board pursuant to Section 141(f) of the DGCL. The issuance of the Common Stock to PRV represented a change-in-control of the Company.

The purchase price for the common stock was $10,000 plus legal fees incurred by the Company in connection with this transaction. The Board determined that, as the Company was in the zone of insolvency and its market capitalization had been for several months approximately $0.00, it was in the best interest of the Company and its stakeholders to pursue a going private transaction at this time, in lieu of a filing under Chapter 7.

14The managing member of PRV is Howard J. Weisman, who is also chief executive officer of the Company and chairman of its Board. As a holder of greater than ninety percent (90%) of the issued and outstanding voting shares of the Company, PRV intends to execute a short-form merger of the remaining issued and outstanding shares of common stock pursuant to Section 251(h) of the DGCL. Once the short-form merger is complete, the Company will continue to exist as a wholly-owned subsidiary of PRV.

~~Table of Contents~~15

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

References to the “Company,” “Kuvatris Therapeutics, Inc.,” “our,” “us,” or “we” herein refer to Kuvatris Therapeutics, Inc, formerly PaxMedica, Inc. The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the unaudited interim condensed financial statements and the notes thereto contained elsewhere in this Quarterly Report on Form 10-Q (this “Quarterly Report”) and with our audited financial statements for the fiscal year ended December 31, 2023, as included in our annual report on Form 10-K, filed with the SEC on March 11, 2024 (our “Annual Report”). Certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties.

References to the “Company,” “PaxMedica, Inc.,” “our,” “us,” or “we” refer to PaxMedica, Inc. The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the unaudited interim condensed financial statements and the notes thereto contained elsewhere in this Quarterly Report on Form 10-Q (this “Quarterly Report”) and with our audited financial statements for the fiscal year ended December 31, 2023, as included in our annual report on Form 10-K, filed with the Securities & Exchange Commission (“SEC”) on March 11, 2024 (our “Annual Report”). Certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties.

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report, as well as information included in oral statements or other written statements made or to be made by us, contain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, and other future conditions. Forward-looking statements can be identified by words such as “anticipate,” “believe,” “envision,” “estimate,” “expect,” “anticipate,” “intend,” “may,” “plan,” “predict,” “project,” “target,” “potential,” “will,” “would,” “could,” “should,” “continue,” “ongoing,” “scheduled to,” “contemplate” and other similar expressions, although not all forward-looking statements contain these identifying words. Examples of forward-looking statements include, among others, statements we make regarding:

● our lack of operating history; ● the expectation that we will incur significant operating losses for the foreseeable future and will need significant additional capital, including through future sales and issuances of equity securities, which could also result in substantial dilution to our stockholders; ● our current and future capital requirements to support our development and commercialization efforts for our product candidates and our ability to satisfy our capital needs; ● our dependence on our product candidates, which are still in preclinical or early stages of clinical development; ● our, or our third-party manufacturers’, ability to manufacture cGMP batches of our product candidates as required for pre-clinical and clinical trials and, subsequently, our ability to manufacture commercial quantities of our product candidates; ● whether we will be successful in obtaining a priority review voucher, or PRV, for KV-101 and the commercial value to be realized from any such PRV, if any; ● our ability to complete required clinical trials for our product candidates and obtain approval from the FDA or other regulatory agencies in different jurisdictions; ● our lack of a sales and marketing organization and our ability to commercialize our product candidates if we obtain regulatory approval; ● our dependence on third parties to manufacture our product candidates; ● our reliance on third-party CROs to conduct our clinical trials; ● our ability to obtain, maintain or protect the validity of our intellectual property, including our granted or potential future patents; ● our ability to internally develop new inventions and intellectual property; ● interpretations of current laws and the passages of future laws;

~~● our lack of operating history;~~16

● acceptance of our business model by investors; ● adverse developments affecting the financial services industry; ● the accuracy of our estimates regarding expenses and capital requirements; and ● our ability to adequately support organizational and business growth.

● the expectation that we will incur significant operating losses for the foreseeable future and will need significant additional capital, including through future sales and issuances of equity securities, which could also result in substantial dilution to our stockholders;

● our current and future capital requirements to support our development and commercialization efforts for our product candidates and our ability to satisfy our capital needs;

● our dependence on our product candidates, which are still in preclinical or early stages of clinical development;

● our, or our third-party manufacturers’, ability to manufacture cGMP batches of our product candidates as required for pre-clinical and clinical trials and, subsequently, our ability to manufacture commercial quantities of our product candidates;

● whether we will be successful in obtaining a priority review voucher, or PRV, for PAX-101 and the commercial value to be realized from any such PRV, if any;

● our relationship with TardiMed, an affiliated entity that provides office space and important administrative services to us, as well as our ability to attract and retain key executives and medical and scientific personnel;

● our ability to complete required clinical trials for our product candidates and obtain approval from the FDA or other regulatory agencies in different jurisdictions;

● our lack of a sales and marketing organization and our ability to commercialize our product candidates if we obtain regulatory approval;

● our dependence on third parties to manufacture our product candidates;

● our reliance on third-party CROs to conduct our clinical trials;

● our ability to obtain, maintain or protect the validity of our intellectual property, including our granted or potential future patents;

● our ability to internally develop new inventions and intellectual property;

Table of Contents

● interpretations of current laws and the passages of future laws;

● acceptance of our business model by investors;

● adverse developments affecting the financial services industry;

● the accuracy of our estimates regarding expenses and capital requirements; and

● our ability to adequately support organizational and business growth.

The following discussion should be read in conjunction with our financial statements and related notes and other financial information appearing elsewhere in this report. In addition to historical information, the following discussion and other parts of this report contain forward-looking information that involves risks and uncertainties. Our actual results could differ materially from those anticipated by such forward-looking information due to the factors discussed under Item 1A— “Risk Factors” of our Annual Report and under Item 1A – “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” of this Item 2.

Overview

We are a clinical stage biopharmaceutical company focusing on the development of anti-purinergic drug therapies (“APT”) for the treatment of disorders with intractable neurologic symptoms, ranging from neurodevelopmental disorders, including autism spectrum disorder (“ASD”), to Myalgic Encephalomyelitis/Chronic Fatigue Syndrome (“ME/CFS”), a debilitating physical and cognitive disorder believed to be viral in origin and now with rising incidence globally due to the long term effects of SARS-CoV-2 (“COVID-19”). APTs have been shown to block the effects of excess production and extracellular receptor activity of adenosine triphosphate (“ATP”), which acts as both the main energy molecule in all living cells and a peripheral and central nervous system neurotransmitter via receptors that are found throughout the nervous system. Excess purinergic signaling can offset homeostasis and trigger immune responses that result in localized and systemic increases in inflammatory chemokines and cytokines, ultimately stimulating ATP production. APTs may also impact immunologic and inflammatory mechanisms that may be causing or exacerbating symptoms in these seemingly unrelated disorders, which may be caused in part by similar mechanisms of ATP overproduction.

One of our primary points of focus is currently the development and testing of our lead program, ~~PAX~~KV-101, an intravenous formulation of suramin, in the treatment of ASD and ~~the~~for ~~advancement of~~ the ~~clinical~~treatment ~~understanding~~ of ~~using~~Human ~~that~~African ~~agent against other disorders such as fragile X syndrome (FXS)~~Trypanosomiasis, ~~fragile~~a ~~X-associated~~fatal ~~tremor/ataxia~~parasitic ~~syndrome~~infection ~~(FXTAS),~~commonly ~~ME/CFS~~known ~~and~~as ~~Long~~African sleeping ~~COVID-19~~sickness ~~Syndrome~~ (“~~LCS~~HAT”)~~, a clinical diagnosis in individuals who have been previously infected with COVID-19~~.

In February 2021, we announced positive topline data from our Phase 2 dose-ranging clinical trial evaluating ~~PAX~~KV-101 (commonly known as intravenous suramin) for the treatment of the core symptoms of ASD, as described in more detail below. We also intend to submit data to support a New Drug Application (an “NDA”) for ~~PAX~~KV-101 under the Tropical Disease Priority Voucher Program of the U.S. Food and Drug Administration (the “FDA”) for ~~the treatment of Human African Trypanosomiasis, a fatal parasitic infection commonly known as African sleeping sickness (“~~HAT”), leveraging suramin’s historical use in treating HAT outside of the United States. We have exclusively licensed clinical data from certain academic or international government institutions to potentially accelerate ~~PAX~~KV-101’s development plans in the United States through this regulatory program and intend to seek approval in the United States for the treatment of East African HAT (as defined below) as early as late 2024 or in the first half of 2025.

We are also pursuing the development of next generation ~~APT~~ATP product development candidates for neurodevelopmental indications. These candidates include ~~PAX~~KV-102, our proprietary intranasal formulation of suramin, as well as other new chemical entities that are more targeted and selective antagonists of particular purine receptor subtypes. We believe our lead drug candidate (suramin), if approved by the FDA, may be a significant advancement in the treatment of ASD ~~and a potentially useful treatment for FXS, FXTAS, ME/CFS and LCS~~.

In July 2023, we announced positive topline results from the ~~PAX~~KV-101 (intravenous suramin) Phase 3 African Sleeping Sickness Study, PAX-HAT-301. The conclusions of the study confirmed that the retrospective, non-randomized, externally controlled, interventional efficacy and safety study of suramin for the treatment of Stage 1 TBR HAT demonstrated better health outcomes when compared with a natural history control group of patients evaluated and treated from 1900-1910, prior to the availability of suramin in Africa. The adverse event profile of suramin observed in the study was consistent with what has been widely reported in published medical and clinical literature.

16On October 26, 2023, we completed a type-B meeting with the FDA, where we discussed the results of our recent data from our PAX-HAT-301 study of suramin in HAT. We received constructive feedback that will aid in the completion of the remaining work necessary to file a NDA for that indication, which is expected to take place in second half of 2026.

~~Table of Contents~~17

On June ~~October 26~~27th, ~~2023~~2024, we completed a type-BC meeting with the FDA, where we discussed ~~the~~our ~~results~~Chemistry, ofManufacturing, ~~our~~and ~~recent~~Controls (“CMC”) ~~data~~regulatory ~~from~~guidelines for our ~~PAX~~KV-~~HAT-301~~101 ~~study of suramin in HAT~~candidate. We received constructive feedback ~~that~~which will aid in the completion of ~~the~~our remaining work ~~necessary~~ to file a NDA ~~for~~expected ~~that~~in ~~indication,~~the ~~which~~second ishalf ~~expected~~of 2026 or in the second quarter of 2026. Most of the work to ~~take~~achieve this ~~place~~important inmilestone ~~late~~will ~~2024~~focus oron completing the ~~first~~production ~~half~~of commercial lots of ~~2025~~KV-101 under CMC regulatory guidelines, underway now and scheduled to conclude in early 2026. Additionally, we discussed the implementation and completion of a registry for patients treated with KV-101 for the indication of HAT to be submitted along with the NDA.

On September 4th, 2024, we completed a type-C meeting with the FDA, where we discussed our disease registry study for KV-101 in Malawi. We received constructive feedback on the design of the registry that will address the FDA concerns about heterogeneity in the patient population in Malawi.

OnWe have ~~June~~not ~~27th~~generated any revenue to date and through September 30, 2024, we ~~completed~~had aan ~~type-C~~accumulated ~~meeting~~deficit ~~with~~of ~~the~~approximately ~~FDA~~$59.6 million. To date, ~~where~~we have financed our operations through capital contributions from our prior members when we ~~discussed~~were a limited liability company, proceeds from our ~~Chemistry~~initial public offering, ~~Manufacturing~~the issuance of convertible notes, ~~and~~our ~~Controls~~entry into a Simple Agreement for Future Equity (“~~CMC~~SAFE”) ~~regulatory~~with ~~guidelines~~an ~~for~~investor, ~~our~~the ~~PAX-101~~issuance ~~candidate.~~of WeSeries ~~received~~X ~~constructive~~preferred ~~feedback~~stock, ~~which~~par ~~will~~value ~~aid~~$0.0001 inper share (“Series X preferred stock”), the ~~completion~~sale of ~~our~~shares ~~remaining~~of ~~work~~common stock to ~~file~~LPC a(as ~~NDA~~defined ~~expected~~herein) inpursuant to the ~~fourth~~Purchase ofAgreement, ~~quarter~~our secondary public offering in November 2023, and a warrant inducement in September 2024, orwhich is described in ~~the~~Note ~~first~~7 ~~half~~to ofthe financial ~~2025~~statements attached hereto. ~~Most~~We ofexpect ~~the~~our ~~work~~expenses to ~~achieve~~increase ~~this~~significantly ~~important~~in ~~milestone~~connection ~~will~~with ~~focus~~our onongoing ~~completing~~activities ~~the~~to develop, ~~production~~seek ofregulatory ~~commercial~~approval ~~lots~~and commercialization of ~~PAX~~KV-101 ~~under~~and ~~CMC~~our ~~regulatory~~other ~~guidelines,~~product ~~underway~~candidates. ~~now~~Furthermore, ~~and~~we ~~scheduled~~expect to ~~conclude~~incur additional incosts ~~late~~associated ~~2024~~with operating as a public company. ~~Additionally~~Accordingly, we ~~discussed~~will ~~the~~likely ~~implementation~~need substantial additional financing to support our continuing operations. We will seek to fund our operations through public or private equity or debt financings or other sources. Adequate additional financing may not be available to us on acceptable terms, or at all. Our failure to raise capital as and ~~completion~~when ofneeded would have a ~~registry~~negative ~~for~~impact ~~patients~~on ~~treated~~our ~~with~~financial ~~PAX-101~~condition ~~for~~and ~~the~~our ~~indication~~ability ofto ~~HAT~~pursue our business strategy. We will need to begenerate ~~submitted~~significant ~~along~~revenues ~~with~~to ~~the~~achieve ~~NDA~~profitability, and we may never do so. Accordingly, there are material risks and uncertainties that raise substantial doubt about our ability to continue as a going concern.

We have not generated any revenue to date and, through June 30, 2024, we had an accumulated deficit of approximately $58.7 million. To date, we have financed our operations through capital contributions from our prior members when we were a limited liability company, proceeds from our initial public offering, the issuance of convertible notes, our entry into a Simple Agreement for Future Equity (“SAFE”) with an investor, the issuance of Series X preferred stock, par value $0.0001 per share (“Series X preferred stock”), the sale of shares of common stock to LPC (as defined herein) pursuant to the LPC Purchase Agreement, our follow-on public offering in November 2023, and a warrant exchange in September 2024, which is described in Note 10 to the financial statements attached hereto. We expect our expenses to increase significantly in connection with our ongoing activities to develop, seek regulatory approval and commercialization of PAX-101 and our other product candidates. Furthermore, we expect to incur additional costs associated with operating as a public company. Accordingly, we will likely need substantial additional financing to support our continuing operations. We will seek to fund our operations through public or private equity or debt financings or other sources. Adequate additional financing may not be available to us on acceptable terms, or at all. Our failure to raise capital as and when needed would have a negative impact on our financial condition and our ability to pursue our business strategy. We will need to generate significant revenues to achieve profitability, and we may never do so. Accordingly, there are material risks and uncertainties that raise substantial doubt about our ability to continue as a going concern.

Financial Operations Overview

Revenue

To date, we have not generated any product revenue. Our ability to generate product revenue will depend on the successful development and eventual commercialization of our current, and any potential future, product candidates.

Research and Development Expenses

Research and development expenses consist of costs incurred for the development of ~~PAX~~KV-101 and our other product candidates, which include:

● the cost of acquiring, developing and manufacturing pre-clinical trial materials; ● costs for consultants and contractors associated with developing our product candidates in accordance with CMC guidelines, pre-clinical and clinical activities and regulatory operations; ● expenses incurred under agreements with contract research organizations, or CROs, that conduct our pre-clinical studies and clinical trials; and ● employee-related expenses, including salaries for those employees involved in the research and development process.

● costs for consultants and contractors associated with developing our product candidates in accordance with CMC guidelines, pre-clinical and clinical activities and regulatory operations;

● expenses incurred under agreements with contract research organizations, or CROs, that conduct our pre-clinical studies and clinical trials; and

● employee-related expenses, including salaries for those employees involved in the research and development process.

Research and development costs are expensed as incurred. Costs for certain activities, such as preclinical studies and clinical trials, are generally recognized based on an evaluation of the progress to completion of specific tasks using information and data provided to us by our vendors and collaborators.

1718

Table of Contents

General and Administrative Expense

Our general and administrative expenses include costs associated with our executive, accounting, information technology and human resources functions. These expenses consist principally of payroll, employee benefits, travel, stock-based compensation and professional services fees such as consulting, audit, tax and legal fees, and general corporate costs. We expense all general and administrative expenses as incurred.

We expect our general and administrative expenses to increase primarily as a result of costs related to us operating as a public company, such as additional legal, accounting, corporate governance, and investor relations expenses, and directors’ and officers’ insurance premiums.

Results of Operations

Comparison of the Three Months Ended ~~June~~September 30, 2024 to the Three Months Ended ~~June~~September 30, 2023


	Three months ended September 30,
	Three months ended June 30,
	2024				2023
	2024			2023
Operating expenses
Operating expenses
General and administrative	$	771,005			$	2,425,849
General and administrative	$	1,489,027		$	2,768,910
Research and development		116,933				1,938,672
Research and development		1,509,481			589,029
Total operating expenses		887,937				4,364,521
Total operating expenses		2,998,508			3,357,939
Loss from operations		(887,937	)			(4,364,521	)
Loss from operations		(2,998,508)			(3,357,939)
Other income (expense), net		11,295				(684,697	)
Other income (expense), net		729			(128,348)
Net loss	$	(876,642	)		$	(5,049,218	)
Net loss	$	(2,997,779)		$	(3,486,287)

Operating expenses

General and administrative

General and administrative expenses were approximately $10.57 million and $2.84 million for the three months ended ~~June~~September 30, 2024 and 2023, respectively. The decrease in general and administrative expenses was primarily due to a decrease in stock compensation of approximately $1.31 million, decrease in salary and benefits of approximately $0.2 million, and a decrease in professional fees of approximately $0.4 million.

Research and Development

Research and development expenses were approximately $10.51 million for the three months ended ~~June~~September 30, 2024 and approximately $01.69 million for the three months ended ~~June~~September 30, 2023. The $01.98 million ~~increase~~decrease in research and development expenses was primarily attributable to ~~additional~~completion ~~costs~~of ~~incurred~~work ~~in connection~~ with our development activities, including ~~costs associated with~~ CMC ~~compliance~~and ~~with~~clinical ~~the manufacturer of registration lots~~work.

Of the $10.51 million in research and development expenses incurred during the three months ended ~~June~~September 30, 2024, approximately $0.91 million was associated with activities related to the HAT indication, and ~~approximately~~less than $0.61 million was associated with activities related to the ASD indication. These activities included, but were not limited to, payments in connection with the recently completed CMC processes and preclinical work.

Of the approximately $01.69 million in research and development expenses incurred during the three months ended ~~June~~September 30, 2023, approximately $01.42 million was associated with activities related to the HAT indication, and approximately $0.27 million was associated with activities related to the ASD indication. These activities included, but were not limited to, payments in connection with the recently completed CMC processes and preclinical work.

The estimated remaining aggregate costs expected to be incurred for the research and development and regulatory filing activities relating to the filing of an NDA for HAT is approximately $2.16 million.

Table of Contents

Other Income (expense)

~~The change in other~~ Other income (expense) was ~~immaterial~~less than $0.1 million for the three months ended ~~June~~September 30, 2024, compared with other income (expense) of $(0.17) million for the three months ended ~~June~~September 30, 2023. ~~Other~~The ~~income~~decrease (in expense) ofwas ~~approximately~~primarily ~~$(0.1)~~attributable ~~million~~to ~~for~~a ~~the~~reduction ~~three~~on ~~months~~the ~~ended~~loss on ~~June~~debt ~~30,~~of ~~2023~~approximately ~~was~~$0.4 ~~primarily~~million ~~recognized~~and ~~for~~ the ~~change~~valuation inof ~~fair~~the ~~value~~2023 notes of ~~our~~approximately ~~notes~~$0.3 million.

Comparison of the ~~Six Months~~Nine months Ended ~~June~~ September 30, 2024 to the ~~Six Months~~Nine months Ended ~~June~~September 30, 2023

	Nine months ended September 30,
	2024			2023
Operating expenses
General and administrative	$	5,557,381		$	8,960,254
Research and development		2,019,226			2,750,192
Total operating expenses		7,576,607			11,710,446
Loss from operations		(7,576,607	)		(11,710,446	)
Other income (expense), net		9,001			(658,806	)
Net loss	$	(7,567,606	)	$	(12,369,252	)


	Six months ended June 30,
	2024		2023
Operating expenses
General and administrative	$	4,786,377	$	6,583,094
Research and development		1,902,293		811,520
Total operating expenses		6,688,670		7,394,614
Loss from operations		(6,688,670)		(7,394,614)
Other income (expense), net		(2,294)		74,580
Net loss	$	(6,690,964)	$	(7,320,034)

Operating expenses

General and administrative

General and administrative expenses were approximately $45.86 million and $69.60 million for the ~~six~~nine months ended ~~June~~September 30, 2024 and 2023, respectively. There was a decrease in general and administrative expenses was primarily due to a decrease in stock compensation of approximately $13.9 0 million and a decrease in legal and professional fees ~~of approximately $0.2 million~~, ~~offset~~and bya andecrease ~~increase in~~ salaries and benefits of approximately $0.34 million.

Research and Development

Research and development expenses were approximately $12.90 million for the ~~six~~nine months ended ~~June~~September 30, 2024 and approximately $02.8 million for the ~~six~~nine months ended ~~June~~September 30, 2023. The $10.18 million ~~increase~~decrease in research and development expenses was primarily attributable to ~~additional~~the ~~costs~~completion ~~incurred~~of work in connection with our development activities, including ~~costs associated with chemistry, manufacturing, and controls associated with the manufacturer of registration lots~~CMC.

Of the $12.90 million in research and development expenses incurred during the ~~six~~nine months ended ~~June~~September 30, 2024, approximately $1.23 million was associated with activities related to the HAT indication, and approximately $0.7 million was associated with activities related to the ASD indication. These activities included, but were not limited to, payments in connection with the recently completed CMC processes and preclinical work.

Of the approximately $02.8 million in research and development expenses incurred during the ~~six~~nine months ended ~~June~~September 30, 2023, approximately $01.68 million was associated with activities related to the HAT indication, and approximately $01.20 million was associated with activities related to the ASD indication. These activities included, but were not limited to, payments in connection with the recently completed CMC processes and preclinical work.

Other Income (expense)

~~The change in other~~ Other income (expense) was ~~immaterial~~less than $0.1 million for the ~~six~~nine months ended ~~June~~September 30, 2024, compared with other income (expense) of $(0.17) million for the ~~six~~nine months ended ~~June~~September 30, 2023. ~~Other~~The ~~income~~decrease (in expense) was primarily attributable to a reduction on the loss on debt of approximately $(0.1)4 million, ~~for~~ the ~~six~~valuation ~~months~~of ~~ended~~the ~~June~~2023 ~~30,~~notes ~~2023~~of ~~was~~approximately ~~primarily~~$0.1 ~~recognized~~million, ~~for~~and the ~~change~~reduction inof ~~fair~~other ~~value~~ expenses of ~~our~~approximately ~~notes~~$0.1 million.

Table of Contents

Liquidity and Capital Resources

We were formed as a Delaware limited liability company on April 5, 2018 and converted into a Delaware corporation on April 15, 2020. As of ~~June~~September 30, 2024, we had an accumulated deficit since inception of approximately $5859.76 million. Since inception, we have not generated revenue from product sales and have incurred net losses and negative cash flows from our operations. From inception through ~~June~~September 30, 2024, we have funded our operations in large part through contributions from an affiliated company, TardiMed Sciences, LLC (“TardiMed”), the issuance of senior secured convertible promissory notes totaling approximately $7.0 million, proceeds from the initial public common stock offering, net of fees, of approximately $6.0 million, our SAFE for $5.0 million, the issuance of shares of our common stock in connection with our Purchase Agreement (as defined herein) of $5.6 million, the proceeds from our ~~follow on~~ secondary public offering, net of fees, of approximately $6.1 million, and the proceeds from a warrant ~~exchange~~inducement we completed in September 2024, ~~net~~ of ~~fees, of~~ approximately $0.8 million, net of fees.

Given our projected operating requirements and existing cash, there is substantial doubt about our ability to continue as a going concern through one year following the date that the condensed financial statements herein are issued (see Note 1).

Equity Purchase Agreement with Lincoln Park Capital

On November 17, 2022, the Company entered into ~~an equity purchase agreement (~~the “Purchase Agreement”) with ~~Lincoln Park Capital Fund, LLC (“~~LPC”) which provided that, upon the terms and subject to the conditions and limitations set forth therein, the Company could sell to LPC, at its discretion, up to $20.0 million of shares of its common stock over the 30-month term of the Purchase Agreement (see Note 7). During the ~~six~~nine months ended ~~June~~September 30, 2024, there were no shares of common stock issued in connection with the Purchase Agreement. During the ~~six~~nine months ended ~~June~~September 30, 2023, the Company received approximately $45.84 million from the issuance of ~~151,765~~approximately 0.2 million shares of common stock. As a result of our suspension from trading on the Nasdaq Capital Market, we ~~are~~were no longer permitted to sell shares of the Company’s common stock under the ~~equity~~Purchase Agreement. The Purchase Agreement has lapsed as the Maturity Date was reached on June 1, 2025.

Convertible Notes

In February 2023, athe ~~convertible~~2023 ~~promissory~~Note ~~note~~ with a principal balance of $3.7 million was issued to Lind Global Fund II LP. In connection with the issuance, the Company received proceeds of approximately $3.2 million, net of a $0.5 million discount, incurred fees of approximately $0.5 million and used $0.2 million of proceeds to pay down the remaining balance of already outstanding secured convertible promissory notes.

On November 29, 2023, the Company satisfied in full its obligations under this note.

Vox Nova Exclusive Pharmacy Distribution Agreement

On June 30, 2023, the Company entered into an exclusive specialty benefit manager agreement with Vox Nova, ~~LLC (“~~Vox Nova”) pursuant to which Vox Nova will act as the exclusive United States distributor for the Company’s lead pipeline asset, ~~PAX~~KV-101 intravenous suramin. Vox Nova will provide certain distribution management, pharmacy benefit management, sales and supply monitoring services to the Company with respect to ~~PAX~~KV-101, in the event ~~PAX~~KV-101 receives FDA approval. The distribution agreement also provides for an exclusivity fee payable to the Company of up to $2.0 million, payable in installments based on various time and regulatory approval parameters. Vox Nova paid $0.5 million of the exclusivity fee upfront in connection with the signing of the distribution agreement when the distribution right was transferred to Vox Nova. The remaining $1.5 million is due in four equal installments over a one-year period after ~~PAX~~KV-101 is approved by the FDA and made available for distribution.

Secondary Public Offering

On November 20, 2023, the Company entered into an underwriting agreement relating to the secondary public offering of its common stock, par value $0.0001 per share. The Company agreed to sell 5,384,615 shares of its common stock with the offering price to the public of $1.30 per share, pursuant to the Company’s registration statement on Form S-1 (File No. 333-275416), as amended, under the Securities Act of 1933, that was filed by the Company under Rule 462(b) under the Securities Act. On November 22, 2023, the Company received net proceeds from its public offering of approximately $6.1 million, net of underwriter fees and commissions of approximately $0.6 million, and offering costs of approximately $0.3 million. In connection with its public offering the Company issued 5,384,615 warrants to purchase shares of the Company’s common stock with an exercise price of $1.30 per share and issued 215,385 warrants to purchase shares of the Company’s common stock with an exercise price of $1.625.

The 2023 Note and Warrant contained a price adjustment clause where the exercise and conversion price of the 2023 Note and Warrant is adjusted to the selling price of an offering if the Company’s common stock is sold at a price below the conversion or exercise price, respectively. In November 2023, the Company entered into the secondary public offering described herein in which shares of its common stock were sold at $1.30 per share. As the price of the common stock sold as part of the public offering was below the exercise and conversion price of the 2023 Note and Warrant, the terms of the conversion and exercise price were reset to $1.30, as further described below.

Warrant Inducement and Issuance

On September 3, 2024, the Company entered into warrant inducement offers with the holders of approximately 4.4 million existing warrants of the Company. The inducement offers provided for the reduction of the exercise price of the warrants from $1.30 to $0.20. The holders immediately exercised those warrants for proceeds of approximately $0.8 million, net of fees. In conjunction with the financing the Company also issued 176,923 warrants, with an exercise price of $0.25, to the underwriter. During the three and nine months ended September 30, 2024, the Company issued 3,099,310 shares of common stock as a result of the warrant exercise.

Pursuant to the terms of the warrant inducement offers, in the event that the exercise of the existing warrants would cause a holder to exceed the beneficial ownership limitations included therein, the Company would issue the number of shares of common stock that would not cause a holder to exceed such beneficial ownership limitations and hold the remaining balance of shares of common stock in abeyance. Accordingly, as of September 30, 2024, the Company held an aggregate of 1,323,770 Abeyance Shares. The Abeyance Shares are evidenced through the holder’s existing warrants, which are deemed to be prepaid. The Abeyance Shares will be held by the Company until the holder sends notice that the remaining balance of shares of common stock may be issued without surpassing the beneficial ownership limitations. Until such time, the Abeyance Shares are evidenced through the holder’s existing warrants and are included in the Company’s outstanding warrants. In October 2024, another 433,000 shares of common stock were issued from the Abeyance Shares.

Operating activities

During the ~~six~~nine months ended ~~June~~September 30, 2024, net cash used in operating activities was $45.40 million, which primarily included our net loss of approximately $6.7.6 million, adjusted for non-cash stock-based compensation expense of approximately $1.5 million. The net change in operating assets and liabilities was approximately $01.81 million, and was primarily due to ~~increases~~decreases in prepaid expenses and other current assets of $0.56 million as well as ~~decreases~~increases in ~~accrued~~accounts ~~expenses~~payable of approximately $01.93 million, partially offset by ~~increases~~a decrease in accrued expenses of approximately $10.29 million ~~of accounts payable~~.

20During the nine months ended September 30, 2023, net cash used in operating activities was $8.2 million, which primarily included our net loss of approximately $12.4 million, adjusted for non-cash expenses of approximately $5.6 million including stock-based compensation of approximately $4.5 million and $0.5 million in deferred revenue related to the Vox Nova agreement, offset by the change in fair value of our convertible notes of $0.1 million and the loss on the extinguishment of debt of approximately $0.4 million. The net change in operating assets and liabilities was approximately $1.4 million and was primarily due to decreases in accounts payable and accrued expenses of $1.0 million, and decreases in prepaid and other current assets of $0.5 million.

Table of Contents

During the six months ended June 30, 2023, net cash used in operating activities was $5.8 million, which primarily included our net loss of approximately $7.3 million, adjusted for non-cash expenses of approximately $3.9 million including stock-based compensation of approximately $3.4 million and $0.5 million in deferred revenue related to the Vox Nova agreement, offset by the change in fair value of our convertible notes of $0.2 million. The net change in operating assets and liabilities was approximately $2.3 million and was primarily due to decreases in accounts payable and accrued expenses of $0.6 million, increases in prepaid and other current assets of $1.2 million, and an increase in accounts receivables of $0.5 million.

Investing Activities

There were no investing activities during the ~~six~~nine months ended ~~June~~September 30, 2024 and 2023.

Financing activities

During the ~~six~~nine months ended ~~June~~September 30, 2024, net cash ~~used~~provided by financing activities was ~~less~~approximately $0.7 million, consisting of net proceeds of approximately $0.8 million our September 2024 warrant inducement, offset by cash used for by financing activities of less than $0.1 million for the settlement of shares withheld for payment of employee taxes on vested Restricted Stock Units.

During the ~~six~~nine months ended ~~June~~September 30, 2023, net cash ~~provided~~used byin ~~financing~~operating activities was $8.2 million, which primarily included our net loss of approximately $712.04 million, ~~consisting~~adjusted offor ~~net~~non-cash ~~proceeds~~expenses of approximately $25.76 million ~~received~~including instock-based ~~connection~~compensation ~~with~~of ~~the~~approximately $4.5 ~~issuance~~million, of$0.1 ~~our~~million ~~convertible~~of ~~notes~~other expense and ~~warrants~~$0.5 million in deferred revenue related to the Vox Nova distribution agreement, ~~net~~change in fair value of ~~fees~~our ~~paid~~convertible notes of $0.51 million, and ~~net~~loss ~~proceeds~~on extinguishment of debt of $40.64 million. ~~received~~The ~~from~~net ~~the~~change ~~issuance~~in ofoperating assets ~~shares~~and ofliabilities ~~our~~was ~~common~~approximately ~~stock~~$1.4 inmillion ~~connection~~and ~~with~~was ~~our~~primarily ~~equity~~due ~~purchase~~to ~~agreement~~decreases ~~with~~in ~~LPC,~~accounts ~~net~~payable ofand ~~fees~~accrued ~~paid~~expenses of $01.20 million, ~~offset~~and bydecreases ~~the~~in ~~repayment~~prepaid ofand ~~our~~other ~~2022~~current ~~Notes~~assets of $0.25 million.

Funding requirements

As of ~~June~~September 30, 2024, we had a cash balance of approximately $0.34 million. Our financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty.

We anticipate incurring additional losses for the foreseeable future and may never become profitable. We expect our expenses to increase in connection with our ongoing activities, particularly as we continue the research and development of product candidates. Furthermore, we expect to continue to incur additional costs as a public company. Accordingly, we will likely need to obtain substantial additional funding. If we are unable to raise capital or otherwise obtain funding when needed or on attractive terms, we could be forced to delay, reduce or eliminate our research and development programs or future commercialization efforts. These factors raise substantial doubt about our ability to continue as a going concern. The Company’s future liquidity and capital funding requirements will depend on numerous factors, including:

● the outcome, costs and timing of clinical trial results for the Company’s current or future product candidates; ● the emergence and effect of competing or complementary products; ● its ability to maintain, expand and defend the scope of its intellectual property portfolio, including the amount and timing of any payments the Company may be required to make, or that it may receive, in connection with the licensing, filing, prosecution, defense and enforcement of any patents or other intellectual property rights; and ● its ability to retain its current employees and the need and ability to hire additional management and scientific and medical personnel.

● the emergence and effect of competing or complementary products;

● its ability to retain its current employees and the need and ability to hire additional management and scientific and medical personnel.

We will seek to obtain additional capital through the sale of debt or equity financings or other arrangements such as collaborations, strategic alliances and licensing arrangements to fund operations; however, there can be no assurance that we will be able to raise needed capital under acceptable terms, if at all. The sale of additional equity or equity-linked securities may dilute existing stockholders and may contain senior rights and preferences compared to currently outstanding shares of common and preferred stock. Debt securities issued or other debt financing incurred may contain covenants and limit our ability to pay dividends or make other distributions to stockholders. If we are unable to obtain such additional financing, future operations would need to be scaled back or discontinued.

Table of Contents

Contractual obligations and commitments

During the next twelve months we have commitments to pay $2.13 million to settle our ~~June~~September 30, 2024 accounts payable, accrued expenses, and other current liabilities.

After the next twelve months, we have a commitment of $0.5 million to provide Vox Nova with exclusive pharmacy distribution rights over ~~PAX~~KV-101 for up to seven years once approved by the FDA.

Off-balance sheet arrangements

We do not have any relationships with unconsolidated entities or financial partnerships, including entities sometimes referred to as structured finance or special purpose entities that were established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. We do not engage in off-balance sheet financing arrangements. In addition, we do not engage in trading activities involving non-exchange traded contracts. We therefore believe that we are not materially exposed to any financing, liquidity, market or credit risk that could arise if we had engaged in these relationships.

Critical Accounting Estimates

Recent accounting pronouncements

See Note 2 to our financial statements included in this Quarterly Report for a description of recent accounting pronouncements applicable to our financial statements.

Emerging Growth Company Status

We are an emerging growth company, as defined in the Jumpstart Our Business Startups Act (“JOBS Act”), and we may remain an emerging growth company for up to five years following the completion of our initial public offering. For so long as we remain an emerging growth company, we are permitted and intend to rely on certain exemptions from various public company reporting requirements, including not being required to have our internal control over financial reporting audited by our independent registered public accounting firm pursuant to Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and any golden parachute payments not previously approved and an exemption from compliance with the requirements regarding the communication of critical audit matters in the auditor’s report on financial statements.

Table of Contents

Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. We have elected to avail ourselves of this exemption from new or revised accounting standards and, therefore, we will not be subject to the same new or revised accounting standards as public companies that are not emerging growth companies. As a result of this election, our financial statements may not be comparable to those of companies that are not emerging growth companies.

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise required under this item.

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and are not required to provide the information otherwise required under this item.

Item 4.

Controls and Procedures

Evaluation of Disclosure Controls and Procedures

With the participation of our principal executive officer and principal financial officer, our management conducted an evaluation of the effectiveness of our disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as of the end of the fiscal quarter ended ~~June~~September 30, 2024. Based on this evaluation, our principal executive officer and principal financial officer concluded that during the period covered by this report, our disclosure controls and procedures were not effective as of ~~June~~ September 30, 2024 because of a material weakness in our internal control over accounting for complex financial instruments. A material weakness 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 the Company’s annual or interim financial statements will not be prevented or detected and corrected on a timely basis. Specifically, the Company’s management has concluded that our control around the interpretation and accounting for certain complex features of financial instruments was not effectively designed or maintained. As a result, our management performed additional analysis as deemed necessary to ensure that our financial statements were prepared in accordance with U.S. GAAP. Accordingly, management believes that the financial statements included in this Quarterly Report present fairly, in all material respects, our financial position, result of operations and cash flows of the periods presented. Management understands that the accounting standards applicable to our financial statements are complex and has since the inception of the Company benefited from the support of experienced third-party professionals with whom management has regularly consulted with respect to accounting issues. Management intends to continue to further consult with such professionals in connection with accounting matters.

Material Weaknesses in Internal Controls over Financial Reporting

In the course of preparing our financial statements for the year ended December 31, 2023, we identified material weaknesses in our internal control over financial reporting relating to the evaluation of complex financial instruments, including earnings per share. The material weaknesses have not been remediated as of ~~June~~September 30, 2024. A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis. Our management has concluded that we have not designed, let alone maintained, effective controls over information technology (IT) general controls for information systems that are relevant to the preparation of our financial statements, specifically, with respect to user provisioning and deprovisioning, user access review, passwords, privileged access, cybersecurity, system development lifecycle, and SOC report management review. These IT deficiencies did not result in a misstatement to our financial statements, however, the deficiencies, when aggregated, could impact the effectiveness of IT-dependent controls that could result in misstatements potentially impacting all financial statement accounts and disclosures that would not be prevented or detected. Accordingly, management has determined that these deficiencies in the aggregate constitute a material deficiency. To remediate the above material weaknesses, we have developed a remediation plan with assistance from our IT advisors and have dedicated significant resources and efforts to the remediation and improvement of our internal control.

Table of Contents

In addition, we do not have sufficient segregation of duties within our accounting functions, which is a basic internal control. Due to our size, segregation of all duties may not always be possible and may not be economically feasible. However, to the extent possible, the initiation of transactions, the custody of assets, and the recording of transactions should be performed by separate individuals. Our management has weighed the impact of our failure to have a proper segregation of duties on our assessment of our disclosure controls and procedures and has concluded that the resulting control deficiency represented a material weakness. While our management has implemented procedures to ensure that the financial statements balances included herein fairly present, in all material respects, our financial position, results of operations and cash flows for the periods presented, we have not yet hired a sufficient number of additional accounting and finance staff to fully address this material weakness. Until such time as we have hired adequate staff, this material weakness will not be remediated.

Changes in Internal Control over Financial Reporting

~~Other than with respect to the remediation efforts described for one of the material weaknesses identified above, there~~ There was no change in our internal control over financial reporting that occurred during the fiscal quarter ended ~~June~~September 30, 2024 covered by this Quarterly Report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II-OTHER INFORMATION

Item 1.

Legal Proceedings

From time to time, the Company may become involved in lawsuits and other legal proceedings that arise in the course of business. Litigation is subject to inherent uncertainties, and it is not possible to predict the outcome of litigation with total confidence. The Company is currently not aware of any legal proceedings or potential claims against it whose outcome would be likely, individually or in the aggregate, to have a material adverse effect on the Company’s business, financial condition, operating results, or cash flows.

Item 1A.

Risk Factors

Under current SEC rules, as a smaller reporting company, we are not required to provide risk factor disclosure in this Quarterly Report or in any of our periodic reports until such time as we no longer qualify as a smaller reporting company. However, we included a comprehensive set of risk factors in our most recent Annual Report, which can be accessed here. These risk factors remain applicable to our business and operations.

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3.

Defaults upon Senior Securities.

None.

Item 4.

Mine Safety Disclosures.

Not applicable.

Item 5.

Other Information.

Insider Trading Arrangements

Prior to May 1, 2024, all of our officers, as defined in Rule 16a-1(f) under the Exchange Act, and our directors had engaged in a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” each as defined in Item 408 of Regulation S-K. When our common stock was suspended from trading on the Nasdaq Capital Market beginning on May 2, 2024, our transfer agent terminated each of these arrangements. At this time, there is no viable public market for our common stock and for this reason there is no practical concern that any of our remaining insiders will be able to trade on the basis of material non-public information.

Prior to May 1, 2024 all of our officers, as defined in Rule 16a-1(f) under the Exchange Act, and our directors had engaged in a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” each as defined in Item 408 of Regulation S-K. When our common stock was suspended from trading on the Nasdaq Capital Market beginning on May 2, 2024, our transfer agent terminated each of these arrangements. Currently, our policy with regard to insider trading is, and will remain, that trading in our common stock by our officers and directors is strictly limited to non-blackout periods and any other time when no officer or director is aware of any material non-public information concerning the Company. At such time when it is practical to do so, we will encourage our officers, directors and any other insiders to enter into new Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements. 26

Table of Contents

Item 6.

Exhibits.

Exhibit Number		Description

4.1		Form of Common Stock Purchase Warrant (incorporated by reference from the Current Report on Form 8-K filed on September 6, 2024)

10.1		Form of Letter Agreement re Inducement Offer to Exercise Common Stock Purchase Warrants (incorporated by reference from the Current Report on Form 8-K filed on September 6, 2024)

31.1*		Certification of Chief Executive Officer (Principal Executive Officer) Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2*		Certification of Chief Financial Officer (Principal Financial and Accounting Officer) Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1*		Certification of Chief Executive Officer (Principal Executive Officer) Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2*		Certification of Chief Financial Officer (Principal Financial and Accounting 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

101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)


ExhibitNumber		Description

31.1*		Certification of Chief Executive Officer (Principal Executive Officer) Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2*		Certification of Chief Financial Officer (Principal Financial and Accounting Officer) Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1*		Certification of Chief Executive Officer (Principal Executive Officer) Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2*		Certification of Chief Financial Officer (Principal Financial and Accounting 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

101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

These certifications are furnished to the SEC pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

Table of Contents

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.

Dated: January 14, 2026	PAXMEDICA, INC.

	By:	/s/ Howard J. Weisman
	Name:	Howard J. Weisman
	Title:	Chairman of the Board and Chief Executive Officer (Principal Executive Officer)


Dated: January 14, 2026
Dated: September 20, 2024	PAXMEDICA, INC.
	By:	/s/ Howard J. Weisman

	Name:	Howard J. Weisman
	By:	/s/ Howard J. Weisman
	Title:	Chief Financial Officer and Chief Operating Officer (Principal Financial and Accounting Officer)
	Name:	Howard J. Weisman
	Title:	Chairman of the Board and Chief Executive Officer(Principal Executive Officer)

Dated: September 20, 2024

	By:	/s/ Stephen D. Sheldon
	Name:	Stephen D. Sheldon
	Title:	Chief Financial Officer and Chief Operating Officer(Principal Financial and Accounting Officer)

Filing Compare · Kuvatris Therapeutics, Inc.