PROVECTUS BIOPHARMACEUTICALS, INC. (PVCT) — 10-K

Filed 2026-03-26 · Period ending 2025-12-31 · 41,903 words · SEC EDGAR
# PROVECTUS BIOPHARMACEUTICALS, INC. (PVCT) — 10-K

**Filed:** 2026-03-26
**Period ending:** 2025-12-31
**Accession:** 0001493152-26-012726
**Source:** [SEC EDGAR](https://www.sec.gov/Archives/edgar/data/315545/000149315226012726/)
**Origin leaf:** 3d1a393239458865be743cf11ccf97d63ba5b524da734aa4c37bddfd397e56be
**Words:** 41,903



---

**
**
**UNITED
STATES**
**SECURITIES
AND EXCHANGE COMMISSION**
**Washington,
D.C. 20549**
**FORM
10-K**
| 
| 
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
**For
the fiscal year ended December 31, 2025**
| 
| 
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
**For
the transition period from ____________ to ____________**
**Commission
file number 001-36457**
**PROVECTUS
BIOPHARMACEUTICALS, INC.**
**(Exact
name of registrant as specified in its charter)**
| 
Delaware | 
| 
90-0031917 | |
| 
(State
or other jurisdiction of
incorporation
or organization) | 
| 
(I.R.S.
Employer
Identification
No.) | |
**800
S Gay St, Suite 1610, Knoxville, TN 37929**
**(Address
of principal executive offices) (Zip Code)**
**866-594-5999**
**(Registrants
telephone number, including area code)**
**Securities
registered pursuant to Section 12(b) of the Act:**
| 
Title
of each class | 
| 
Trading
Symbol(s) | 
| 
Name
of each exchange on which registered | |
| 
None | 
| 
N/A | 
| 
N/A | |
**Securities
registered pursuant to Section 12(g) of the Act:**
**Common
Stock, par value $0.001 per share**
**(Title
of class)**
Indicate
by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No
Indicate
by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes 
No
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 | 
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| 
Accelerated
filer | 
| |
| 
| 
| 
| 
| 
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| |
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| 
Non-accelerated
filer | 
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Smaller
reporting company | 
| |
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| 
| |
| 
| 
| 
| 
| 
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 has filed a report on and attestation to its managements assessment of the effectiveness
of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered
public accounting firm that prepared or issued its audit report. 
If
securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant
included in the filing reflect the correction of an error to previously issued financial statements. 
Indicate
by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation
received by any of the registrants executive officers during the relevant recovery period pursuant to 240.10D-1(b). 
Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes No
The
aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which
the common equity was last sold as of June 30, 2025 was $30,585,685 (computed on the basis of $0.075 per share).
The
number of shares outstanding of the registrants common stock, par value $0.001 per share, as of March 23, 2026 was 420,279,879.
**DOCUMENTS
INCORPORATED BY REFERENCE**
The
information required by Part III is incorporated by reference to portions of the definitive proxy statement to be filed within 120 days
after December 31, 2025, pursuant to Regulation 14A under the Securities Exchange Act of 1934 in connection with the 2026 annual meeting
of stockholders.
| | |
****
**TABLE
OF CONTENTS**
| 
PART I | 
| |
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| 
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| |
| 
ITEM
1. | 
BUSINESS | 
2 | |
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| |
| 
ITEM
1A. | 
RISK FACTORS | 
11 | |
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| 
ITEM
1B. | 
UNRESOLVED STAFF COMMENTS | 
18 | |
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| |
| 
ITEM
1C. | 
CYBERSECURITY | 
18 | |
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| 
| 
| |
| 
ITEM
2. | 
PROPERTIES | 
19 | |
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| 
| 
| |
| 
ITEM
3. | 
LEGAL PROCEEDINGS | 
19 | |
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| 
| 
| |
| 
ITEM
4. | 
MINE SAFETY DISCLOSURES | 
19 | |
| 
| 
| 
| |
| 
PART II | 
| |
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| 
| |
| 
ITEM
5. | 
MARKET FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES | 
20 | |
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| |
| 
ITEM
6. | 
[RESERVED] | 
20 | |
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| 
ITEM
7. | 
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 
20 | |
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| |
| 
ITEM
7A. | 
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | 
26 | |
| 
| 
| 
| |
| 
ITEM
8. | 
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA | 
27 | |
| 
| 
| 
| |
| 
ITEM
9. | 
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE | 
28 | |
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| 
| |
| 
ITEM
9A. | 
CONTROLS AND PROCEDURES | 
28 | |
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| |
| 
ITEM
9B. | 
OTHER INFORMATION | 
28 | |
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| 
ITEM
9C. | 
DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS | 
28 | |
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| 
PART III | 
| |
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| |
| 
ITEM
10. | 
DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE | 
29 | |
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ITEM
11. | 
EXECUTIVE COMPENSATION | 
29 | |
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ITEM
12. | 
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS | 
29 | |
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| |
| 
ITEM
13. | 
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE | 
29 | |
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| 
| |
| 
ITEM
14. | 
PRINCIPAL ACCOUNTANT FEES AND SERVICES | 
29 | |
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| 
| 
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| 
PART IV | 
| 
| |
| 
| 
| 
| |
| 
ITEM
15. | 
EXHIBIT AND FINANCIAL STATEMENT SCHEDULES | 
30 | |
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| |
| 
ITEM
16. | 
FORM 10-K SUMMARY | 
33 | |
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| 
| 
| |
| 
SIGNATURES | 
34 | |
| | |
****
**CAUTIONARY
NOTE REGARDING FORWARD LOOKING STATEMENTS**
This
Annual Report on Form 10-K contains forward-looking statements as defined under U.S. federal securities laws. These statements
reflect managements current knowledge, assumptions, beliefs, estimates, and expectations. These statements also express managements
current views of future performance, results, and trends and may be identified by their use of terms such as anticipate,
believe, could, estimate, expect, goal, intend, may,
plan, predict, project, should, strategy, will, and
other similar terms. While we believe that the expectations reflected in our forward-looking statements are reasonable, we can give no
assurance that such expectations will prove correct. Forward-looking statements are subject to risks and uncertainties that could cause
our actual results to differ materially from the future results, performance, or achievements expressed in or implied by any forward-looking
statement we make. Some of the relevant risks and uncertainties that could cause our actual performance to differ materially from the
forward-looking statements contained in this report are discussed below under the heading Risk Factors and elsewhere in
this Annual Report on Form 10-K. We caution investors that these discussions of important risks and uncertainties are not exclusive,
and our business may be subject to other risks and uncertainties which are not detailed there. Investors are cautioned not to place undue
reliance on our forward-looking statements. We make forward-looking statements as of the date on which this Annual Report on Form 10-K
is filed with the U.S. Securities and Exchange Commission (the SEC), and we assume no obligation to update the forward-looking
statements after the date hereof whether as a result of new information or events, changed circumstances, or otherwise, except as required
by law.
Risks
and uncertainties that could cause our actual results to materially differ from those described in forward-looking statements:
| 
| 
| 
The
uncertainty of generating (i) sales from rose bengal sodium-based drug product candidates PV-10, PH-10,
PV-305, and/or any rose bengal sodium-based or any other halogenated xanthene-based drug product candidates (if and when approved),
(ii) licensing, milestone, royalty, and/or other payments related to these drug product candidates, and/or (iii) payments from the
Companys liquidation, dissolution, or winding up, or any sale, lease, conveyance, or other disposition of any intellectual
property relating to these drug product candidates and/or rose bengal sodium- and other halogenated xanthene-based drug substances; | |
| 
| 
| 
| |
| 
| 
| 
The
uncertainty of raising additional capital through the proceeds of private placement transactions of debt and/or equity securities,
the exercise of existing warrants and outstanding stock options, and/or public offerings of debt and/or equity securities; and | |
| 
| 
| 
| |
| 
| 
| 
The
disruptions from a public health crisis, such as severe acute respiratory syndrome coronavirus 2, or an economic predicament, such
as tariffs, or another macro upheaval to our business that could adversely affect our operations and financial condition. | |
| 1 | |
****
**PART
I**
| 
ITEM
1. | 
BUSINESS. | |
**General**
Provectus
Biopharmaceuticals, Inc., a Delaware corporation (together with its subsidiaries, Provectus or the Company),
is a clinical-stage biotechnology company developing immunotherapy medicines for different diseases. Our drug product candidates are
based on bioactive, synthetic, small molecule rose bengal sodium (RBS), which is a member of a class of molecules called
halogenated xanthenes (HXs).
The
Companys proprietary, patented, pharmaceutical-grade RBS is the active pharmaceutical ingredient (API) in all our
clinical development and non-clinical research programs. The Company is the first entity to advance RBS into clinical trials for the
treatment of disease. The Company is also the first entity, and currently the only one, to date to make pharmaceutical-grade RBS API
consistently at a purity of nearly 100%.
RBS
can be delivered by different routes of administration. RBS may concurrently display stimulatory and inhibitory effects, may target disease
in a multi-mechanistic manner, may be an electron acceptor and donor. Direct contact by RBS with disease may lead to cell death or repair
by one or more pathways, depending on the disease being treated and the amount of RBS being utilized. Multivariate innate and adaptive
immune activation, signaling, and response may follow.
The
Companys RBS drug platform and pipeline comprise drug product candidates and non-clinical formulations that use different amounts
of RBS delivered by different routes of administration specific to each disease area, including:
| 
| 
| 
Clinical:
Development programs in oncology (intratumoral administration), dermatology (topical), and ophthalmology (topical), | |
| 
| 
| 
In
vivo: Proof-of-concept programs in oncology (oral), hematology (oral), wound healing (topical), and canine cancers (intratumoral), | |
| 
| 
| 
In
vitro: Early discovery programs in immune vaccine adjuvants, infectious diseases, tissue regeneration and repair,
and proprietary, and | |
| 
| 
| 
In
silico: Computer modeling of amyotrophic lateral sclerosis and other disease targets. | |
**Intellectual
Property**
*U.S.
Patents*
We
hold patents covering RBS and HX medical science. All patents awarded by the U.S. Patent and Trademark Office (USPTO) that
are material to an understanding of the Company are listed in the table below. In 2025, we received one patent award from the USPTO:
| 
U.S.
Patent No. | 
| 
Title | 
| 
Issue
Date | 
| 
Expiration
Date | |
| 
| 
| 
| 
| 
| 
| 
| |
| 
8,530,675 | 
| 
Process
for the synthesis of rose bengal and related xanthenes | 
| 
September
10, 2013 | 
| 
April
21, 2031 | |
| 
| 
| 
| 
| 
| 
| 
| |
| 
9,107,887 | 
| 
Combination
therapy for cancer | 
| 
August
15, 2015 | 
| 
March
9, 2032 | |
| 
| 
| 
| 
| 
| 
| 
| |
| 
9,273,022 | 
| 
Process
for the synthesis of rose bengal and related xanthenes | 
| 
March
1, 2016 | 
| 
September
17, 2030 | |
| 
| 
| 
| 
| 
| 
| 
| |
| 
9,422,260 | 
| 
Process
for the synthesis of rose bengal and related xanthenes | 
| 
August
23, 2016 | 
| 
September
26, 2030 | |
| 2 | |
| 
9,808,524 | 
| 
Combination
of local and systematic immunomodulative therapies for melanoma and liver cancer | 
| 
November
7, 2017 | 
| 
March
9, 2032 | |
| 
| 
| 
| 
| 
| 
| 
| |
| 
9,839,688 | 
| 
Combination
of rose bengal and systemic immunomodulative therapies for enhanced treatment of cancer | 
| 
December
12, 2017 | 
| 
March
9, 2032 | |
| 
| 
| 
| 
| 
| 
| 
| |
| 
10,130,658 | 
| 
Method
of ex vivo enhancement of immune cell activity for cancer immunotherapy with a small molecule ablative compound | 
| 
November
20, 2018 | 
| 
December
18, 2035 | |
| 
| 
| 
| 
| 
| 
| 
| |
| 
10,471,144 | 
| 
Combination
of local rose bengal and systemic immunomodulative therapies for enhanced treatment of cancer | 
| 
November
12, 2019 | 
| 
November
12 2034 | |
| 
| 
| 
| 
| 
| 
| 
| |
| 
11,058,664 | 
| 
In
vitro and xenograft anti-tumor activity of a halogenated xanthene against refractory pediatric solid tumors | 
| 
July
13, 2021 | 
| 
May
15, 2039 | |
| 
| 
| 
| 
| 
| 
| 
| |
| 
11,071,781 | 
| 
Combination
of local and systemic immunomodulative therapies for enhanced treatment of cancer | 
| 
July
27, 2021 | 
| 
March
9, 2032 | |
| 
| 
| 
| 
| 
| 
| 
| |
| 
11,419,844 | 
| 
Composition
and Methods for Treating Hematologic Cancers | 
| 
August
23, 2022 | 
| 
December
3, 2040 | |
| 
| 
| 
| 
| 
| 
| 
| |
| 
11,426,379 | 
| 
Combination
of Local and Systemic Therapies for Enhanced Treatment of Dermatologic Conditions | 
| 
August
30, 2022 | 
| 
November
29, 2038 | |
| 
| 
| 
| 
| 
| 
| 
| |
| 
11,938,182 | 
| 
Halogenated
xanthenes as vaccine adjuvants | 
| 
March
26, 2024 | 
| 
March
35, 2041 | |
| 
| 
| 
| 
| 
| 
| 
| |
| 
11,975,106 | 
| 
Uses
of halogenated xanthenes in oncology and virology | 
| 
May
7, 2024 | 
| 
July
6, 2041 | |
| 
| 
| 
| 
| 
| 
| 
| |
| 
11,974,980 | 
| 
In
vitro and xenograft anti-tumor activity of a halogenated xanthene against refractory pediatric solid tumors | 
| 
May
7, 2024 | 
| 
October
13, 2038 | |
| 
| 
| 
| 
| 
| 
| 
| |
| 
12,064,507 | 
| 
Composition
and method for oral treatment of leukemia | 
| 
August
20, 2024 | 
| 
August
4, 2041 | |
| 
| 
| 
| 
| 
| 
| 
| |
| 
12,133,840 | 
| 
Halogenated
xanthene composition and method for treating hematologic cancers | 
| 
November
5, 2024 | 
| 
August
3, 2040 | |
| 
| 
| 
| 
| 
| 
| 
| |
| 
12,377,068 | 
| 
In
vitro and xenograft anti-tumor activity of a halogenated-xanthene against refractory pediatric solid tumors | 
| 
August
05, 2025 | 
| 
May
13, 2039 | |
In
2025, one patent application was also published on the USPTOs website:
| 
| 
| 
Micromolar
Halogenated Fluorescein Assists in Full Skin-Thickness Wound Healing (USPTO application number 19/198639). | |
| 3 | |
**
*International
Patents*
In
2025, the Company received patent awards and allowances for three of our patent families:
| 
Patent
No. | 
| 
Title | 
| 
Issue
Date | 
| 
Expiration
Date | |
| 
| 
| 
| 
| 
| 
| 
| |
| 
3100358
(Canada) | 
| 
In
vitro and xenograft anti-tumor activity of a halogenated-xanthene against refractory pediatric solid tumors | 
| 
August
5, 2025 | 
| 
May
15, 2039 | |
| 
| 
| 
| 
| 
| 
| 
| |
| 
3172420
(Canada) | 
| 
Halogenated-xanthenes
as vaccine adjuvants | 
| 
November
18, 2025 | 
| 
September
29, 2041 | |
| 
| 
| 
| 
| 
| 
| 
| |
| 
202478194
(Australia) | 
| 
Composition
and method for treating hematologic cancers | 
| 
July
31, 2025 | 
| 
November
19, 2039 | |
| 
| 
| 
| 
| 
| 
| 
| |
| 
201974803
(Australia) | 
| 
Composition
and method for treating hematologic cancers | 
| 
February
20, 2025 | 
| 
November
19, 2039 | |
| 
| 
| 
| 
| 
| 
| 
| |
| 
102849944
(Korea) | 
| 
In vitro and xenograft anti-tumor activity
of a halogenated-xanthene against refractory pediatric solid tumors | 
| 
August
20, 2025 | 
| 
May
15, 2039 | |
**Clinical
Development and Drug Discovery**
****
The
Companys small molecule platform, which comprises different drug candidates and non-clinical formulations made from pharmaceutical-grade
RBS using different concentrations and delivered by different routes of administration specific to each disease and/or disease indication,
includes:
*Clinical
Development Programs*
| 
| 
| 
Oncology:
Intratumoral PV-10 has undergone and is undergoing multiple, monotherapy and combination
therapy, early-to-late-stage clinical trials, expanded access programs (EAPs)
for groups of and individual patients, and/or quality of life (QOL) study at
multiple clinical sites in Australia, Europe, and the U.S. for the treatments of Stage III
and IV melanoma, different types of liver cancers, and breast cancer.
PV-10
has undergone clinical monotherapy and combination therapy study of mechanisms of action and immune response for melanoma, metastatic
uveal melanoma, and metastatic neuroendocrine tumors at Moffitt Cancer Center (Moffitt) in Tampa, Florida, The Queen
Elizabeth Hospital in Adelaide, Australia, and MD Anderson Cancer Center in Houston, Texas.
The
Companys co-lead indication for intratumoral PV-10 is pre-operative penile squamous cell carcinoma (penile SCC),
where patients would receive monotherapy PV-10 at a single-site early-stage clinical trial at Moffitt.
The
other co-lead indication for intratumoral PV-10 is FOLRINOX-refractory pancreatic ductal adenocarcinoma (PDAC) metastatic
to the liver (mPDAC), where patients would receive the combination therapy of PV-10 and systemically administered gemcitabine
and nab-paclitaxel at a single-site early-stage clinical trial at Moffitt. | |
| 
| 
| 
| |
| 
| 
| 
Dermatology:
Topical PH-10, a formulation of PV-10, has undergone multiple mid-stage, monotherapy
clinical trials for the treatments of psoriasis and atopic dermatitis at different clinical
sites in the U.S.
PH-10
has undergone clinical monotherapy mechanism of action and mechanism of immune response study for psoriasis at The Rockefeller University
in New York, New York (TRU).
Different
PV-10 formulations have undergone non-clinical combination therapy study for psoriasis and are undergoing non-clinical monotherapy
study for skin inflammation and skin aging at TRU. | |
| 4 | |
| 
| 
| 
Ophthalmology:
The Company believes that clinical proof-of-concept (POC) of topical administration
of non-pharmaceutical grade rose bengal in combination with a light source medical device
for the treatment of infectious keratitis has been shown by clinicians and researchers at
the University of Miamis (UMs) Bascom Palmer Eye Institute (BPEI)
in Miami, Florida, who are now collaborating with the Company to evaluate the potential use
of our pharmaceutical-grade RBS.
Topical
formulation PV-305, a formulation of PV-10, has undergone non-clinical combination therapy study (i.e., drug and device) for diseases
and disorders of the eye, such as infectious keratitis, at BPEI.
The
Company launched a clinical-stage start-up biotechnology company named VisiRose, Inc. (VisiRose), a collaboration between
the Company and UM to commercialize BPEIs ocular research using PV-305. | |
*Proof-of-Concept
Programs*
| 
| 
| 
Oncology:
Intratumoral PV-10 has undergone non-clinical monotherapy and combination therapy study for the treatment of relapsed and refractory
pediatric solid tumor cancers at the University of Calgarys Cumming School of Medicine in Calgary, Alberta, Canada (UCal).
The Company believes that the UCal researchers have achieved monotherapy in vivo POC of intratumoral administration for pediatric
solid tumor cancers. | |
| 
| 
| 
| |
| 
| 
| 
Oral
(PO) formulations of PV-10 have undergone non-clinical monotherapy study for high-risk and refractory adult solid tumor
cancers at UCal. The Company believes that the UCal researchers and the Company have both achieved monotherapy in vivo POC
of PO administration, that the Company has achieved monotherapy in vivo POC of PO administration in both prophylactic and
therapeutic settings, and that the Company has achieved monotherapy in vivo POC of PO administration for adult solid tumors. | |
| 
| 
| 
| |
| 
| 
| 
Hematology:
PO formulations of PV-10 have undergone non-clinical monotherapy study for the treatment of refractory and relapsed pediatric
and other blood cancers, including leukemias, at UCal. The Company believes that the UCal researchers have achieved in vivo
POC of PO administration for blood cancers. | |
| 
| 
| 
| |
| 
| 
| 
Wound
Healing: The Company believes that monotherapy in vivo POC of topical administration
of non-pharmaceutical grade rose bengal for the treatment of this indication has been shown
by researchers at the University of Texas Medical Branch (UTMB) in Galveston,
Texas, who are now collaborating with the Company to use our pharmaceutical-grade RBS.
Topical
formulations of PV-10 are undergoing non-clinical monotherapy study for the healing of full-thickness cutaneous wounds at UTMB. | |
| 
| 
| 
| |
| 
| 
| 
Animal
Health: PV-10 formulations have undergone non-clinical monotherapy study for the treatment of cutaneous canine cancers at the
University of Tennessees College of Veterinary Medicine in Knoxville, Tennessee. The Company believes that it has achieved
monotherapy POC of intratumoral administration for canine cancers. | |
*Early
Drug Discovery Programs*
| 
| 
| 
Immune
vaccine adjuvant: Different formulations of PV-10 have undergone non-clinical study as a vaccine adjuvant to enhance T cell responses
for anti-viral and anti-cancer vaccines. | |
| 
| 
| 
| |
| 
| 
| 
Infectious
Diseases: PO and intranasal (IN) formulations of PV-10 have undergone non-clinical monotherapy study for the treatment
of SARS-CoV-2 at UCal, another Canadian academic research center, the University of Tennessee Health Science Center (UTHSC)
in Memphis, Tennessee, and a U.S. contract research organization. Different formulations of PV-10 have undergone non-clinical monotherapy
and combination therapy study for the treatment of gram-positive and gram-negative bacterial infections (including multi-drug-resistant
strains) and have undergone non-clinical monotherapy study for the treatment of oral bacterial infections at UTHSC. Different formulations
of PV-10 have undergone non-clinical monotherapy study for the treatment of fungal infections at UTHSC. | |
| 5 | |
| 
| 
| 
Tissue
Regeneration and Repair: Different formulations of PV-10 have undergone non-clinical monotherapy study for vertebrate development,
wound healing, and tissue regrowth at the University of Nevada, Las Vegas in Las Vegas, Nevada. | |
| 
| 
| 
| |
| 
| 
| 
Proprietary:
Different formulations of PV-10 are undergoing non-clinical study for proprietary diseases at an academic medical center. | |
*Computer
Modeling Programs*
| 
| 
| 
Computer-based
molecular docking of RBS has been done and is being done for amyotrophic lateral sclerosis and other disease targets. | |
**Business
Strategy**
The
Company is planning to initiate new intratumoral PV-10 monotherapy and combination therapy clinical trials in pre-operative penile SCC
and mPDAC indications to generate new clinical data and appropriately utilize historical clinical data from intratumoral PV-10 trials,
EAPs, and/or QOL study of injectable solid tumor cancers. Our goals are to pursue drug approval pathways and/or co-development relationships
with commercial pharmaceutical companies for intratumoral PV-10 based on these and other indications.
The
Company is developing a systemically administered formulation of PV-10 for the treatment of cancer. Our goals, when this work is complete,
are to file and have accepted an investigational new drug application (IND) with the U.S. Food and Drug Administration
(FDA), take an initial systemic drug product candidate into an early-stage clinic trial for an initial oncology or hematology
indication, and/or pursue a co-development collaboration or out-license arrangement for this route of administration and disease area.
The
Company is developing different formulations of PV-10 and different routes of administration for other disease areas by endeavoring to
show non-clinical activity and lack of toxicity. Our goals, when each task of this work is completed, are to file and have accepted an
IND with the FDA, take an initial drug candidate into an early-stage clinic trial for an initial indication, and/or pursue a co-development
collaboration or out-license arrangement for the respective disease area and route of administration.
The
Company is endeavoring to fully elucidate the traits and characteristics of the RBS molecule using different academic medical centers
under sponsored research and testing agreements. Our goal is to gain and communicate additional knowledge of the RBS molecules
targeting, mechanism, signaling, immune response, and other features that are common to and/or different from each disease area under
research.
The
Company is doing rigorous chemical analytical comparisons of non-pharmaceutical grades of rose bengal from specialty chemical suppliers
against the Companys pharmaceutical-grade RBS. Our goal is to demonstrate the proprietary nature of the Companys pharmaceutical-grade
RBS and that our pharmaceutical-grade RBS meets the necessary uniformity and purity requirements for commercial pharmaceutical use.
**RBS
API and Drug Candidate Manufacturing**
Our
pharmaceutical-grade RBS resulted from:
| 
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The
Companys innovation of a proprietary, patented, commercial-scale process to synthesize the RBS molecule into a viable active
pharmaceutical ingredient (API) for commercial pharmaceutical use, | |
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| |
| 
| 
| 
The
development of unique chemistry, manufacturing, and control (CMC) specifications for API and drug candidate manufacturing
processes, | |
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| |
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The
production and multi-year stability testing of multiple API and drug candidate lots; the comprehensive documentation of lot composition
and reproducibility, and | |
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The
review and acceptance of CMC data from these lots by seven different national drug regulatory agencies for use in a prior, multi-country,
multi-center Phase 3 randomized control trial of the Company. | |
| 6 | |
The
Companys API and drug candidate manufacturing processes employ Quality-by-Design principles, current good manufacturing practice
(cGMP) regulations, and the guidelines of The International Council for Harmonization (ICH) of Technical Requirements for
Pharmaceuticals for Human Use. These processes utilize controls that eliminate the formation of historical impurities and avoid the introduction
of potentially hazardous impurities that the Company believes may have been and could be present in uncontrolled and unreported amounts
in non-pharmaceutical grades of rose bengal.
The
Companys processes of synthesizing the RBS molecule into pharmaceutical-grade RBS and manufacturing RBS API and PV-10 drug candidate,
the processes CMC specifications, and the CMC data from the production of stability lots of API and drug candidate have been reviewed
by multiple national drug regulatory agencies prior to granting clinical trial authorizations for the Company to commence a historical
Phase 3 study of intratumoral PV-10 for the treatment of the Companys former lead indication of locally advanced cutaneous melanoma
(LACM), including the U.S. FDA, Germanys Bundesinstitut fr Arzneimittel und Medizinprodukte (BfArM), Australias Therapeutic
Goods Administration (TGA) under a clinical trial notification, Frances Agence Nationale de Scurit du Mdicament
et des Produits de Sant (ANSM), Italys Agenzia Italiana del Farmaco (AIFA), Mexicos Comisin Federal para
la Proteccin contra Riesgos Sanitarios (COFEPRIS), and Argentinas Administracin Nacional de Medicamentos, Alimentos
y Tecnologa Mdica (ANMAT).
**RBS
Non-proprietary Name**
The
RBS name for the Companys pharmaceutical-grade API was selected by and passed the review of the World Health Organization (WHO)
Expert Advisory Panel on the International Pharmacopoeia and Pharmaceutical Preparations after the Company applied for a non-proprietary
name in 2020 and reached the status of recommended International Non-proprietary Names (INN). INN Recommended List 88,
which includes the RBS name, was published with the No. 3 issue of the WHO Drug Information, Volume 36 in 2022.
**Non-Pharmaceutical
Grades of Rose Bengal**
*Commercial
Grade*
Commercial
grade rose bengal can be purchased from specialty chemical suppliers in the U.S. and other parts of the world that manufacture it under
non-cGMP conditions. Commercial grade rose bengal appears to have reported purities that may vary between 80% and 95%, which we believe
may not be wholly accurate, and may contain substantial amounts of unreported related impurities and/or gross contaminants. Commercial
grade rose bengal is typically used by researchers unaffiliated with the Company for non-clinical study of the rose bengal molecule for
potential biomedical therapeutic applications. The Company provides PV-10 to researchers affiliated with the Company for their non-clinical
study of RBS for potential biomedical therapeutic applications.
We
believe that commercial grade rose bengal is still manufactured using the original historical process, or a variant thereof, developed
by the molecules original Swiss creator Rudolph Gnehm in 1881. Some chemical manufacturers may, however, apply purification techniques
that the Company believes still result in commercial grade rose bengal possessing questionable purity and contaminants and substantial
lot-to-lot manufacturing variability.
*Diagnostic
Grade*
Diagnostic
grade rose bengal describes non-approved rose bengal that is used as an ingredient in historical or current ophthalmic solutions, strips,
and devices, has been historically or is presently compounded by pharmacists for ophthalmic use, and has been or is in other non-ophthalmic
diagnostic tests such as the rose bengal test for human brucellosis.
We
presume, but have not yet confirmed, that diagnostic grade rose bengal is derived from commercial grade rose bengal that may have undergone
a form of purification under cGMP regulations and/or may have been compounded by a pharmacist, academic medical researcher, or commercial
entity under cGMP regulations. Here too, the Company believes that purification may not sufficiently improve the amounts and accuracy
of diagnostic grade rose bengal purity and lot contents and may not adequately reduce or eliminate lot-to-lot manufacturing variability.
| 7 | |
*Chemical
Analytical Comparison*
In
2022, the Company worked with a U.S. contract development and manufacturing organization to assess rigorously and methodically three
lots of commercial grade rose bengal, one each from three different specialty chemical suppliers, and compare these non-pharmaceutical
grade materials with the Companys pharmaceutical-grade RBS. This chemical analytical work was substantially completed in 2022.
The Company believes that the results of these analyses indicated that all three lots of commercial grade rose bengal had
rose bengal purity that was drastically different from what was represented on their respective certificates of analysis (CofAs),
and that one of the three lots contained gross contaminants that were not represented on its CofA.
**Potential
Barriers to Entry**
The
Company believes that the Companys proprietary, patented, pharmaceutical-grade RBS possesses several competitive advantages over
non-pharmaceutical-grade rose bengal (i.e., commercial and diagnostic grades) that researchers, clinicians, and academic, business, and/or
governmental competitors have used, are using, and/or may attempt to use for potential biomedical applications. The Company believes
that non-pharmaceutical-grade rose bengal may suffer from the uncontrolled presence of substance-related impurities and/or gross contaminants,
substantial lot-to-lot manufacturing variability, inaccurately reported and/or misrepresented purity and contents, and the lack of reproducible,
consistent, and fulsome CMC specifications and documentation. The Company believes that historical and potentially hazardous impurities
and other manufacturing and handling issues facing non-pharmaceutical grade rose bengal may pose significant scientific, technological,
and economic challenges to overcome and validate for compliance with modern drug regulatory standards.
**2025
Activity**
In
June, the Company held its annual stockholder meeting where stockholders approved the proposals of the Board of Directors (Board)
to seek the authority to undertake a reverse stock split and an authorized share reduction. Meeting activities and the company update
were made accessible by Zoom Webinar.
Non-clinical
data on PV-10 for the intratumoral treatment of head and neck squamous cell carcinoma were published in *Molecular Cancer Therapeutics*,
titled PV-10 triggers immunogenic cell death in head and neck squamous cell carcinoma via endoplasmic reticulum stress and apoptosis.
In
September, the Company initiated preclinical research on oral PV-10 in bladder cancer.
In
December, non-clinical data on PV-10 for the activation of the bodys natural STING (stimulator of interferon genes) immune pathway
were published in *Human Vaccines & Immunotherapeutics*, titled PV-10 as New Adjuvant Enhances Immune Responses in Hepatitis
B Vaccination Through STING Pathway.
**Competition**
In
general, the pharmaceutical and biotechnology industries are competitive, characterized by steady and sometimes disruptive advances in
products and technology. A number of companies have developed and continue to develop products that address the areas we have targeted.
Some of these companies are pharmaceutical companies and biotechnology companies that are international in scope and very large in size,
while others are small companies that have been successful in one or more areas we are targeting. Existing or future pharmaceutical,
devices, or other competitors may develop products that accomplish similar functions to our technologies in ways that may be less expensive,
receive faster regulatory approval, or receive greater market acceptance than our products. Many of our competitors have been in existence
longer than we have, have greater capital resources, broader internal structure for research, development, manufacturing, and marketing,
and may be further along in their respective product cycles.
| 8 | |
**Supply
Chain**
During
2025, we continued manufacturing new clinical supplies of PV-10 and PV-305.
**Federal
Regulation of Therapeutic Products**
All
the prescription drug candidates that we currently contemplate developing will require approval by the U.S. Food and Drug Administration
(FDA) prior to sales within the U.S. and by comparable international governmental healthcare regulatory agencies prior
to sale outside the U.S. The FDA and comparable international agencies impose substantial requirements on the manufacturing and marketing
of pharmaceutical products. These agencies and other entities regulate, among other things, research and development activities and the
testing, manufacturing, quality control, safety and effectiveness claims, labeling, storage, record keeping, approval, advertising, and
promotion of our prescription drug candidates. While we attempt to minimize and avoid significant regulatory bars when formulating our
products, some degree of regulation from these regulatory agencies is unavoidable.
The
regulatory process required by the FDA, through which our prescription drug candidates must successfully pass before they may be marketed
in the U.S., generally involves pre-clinical laboratory and animal testing, submission of an application that must become effective before
clinical trials may begin, adequate and well-controlled human clinical trials to establish the safety and efficacy of the product for
its intended indication, and FDA approval to market a given product for a given indication after the appropriate application has been
filed. For pharmaceutical products, pre-clinical tests include laboratory evaluation of the product, its chemistry, formulation, and
stability, as well as *in vitro* and animal studies to assess the potential safety and efficacy of the product. We will require
sponsored work to be conducted in compliance with pertinent local and international regulatory requirements, including those providing
for Institutional Review Board approval, national governing agency approval, and patient informed consent, using protocols consistent
with ethical principles stated in the Declaration of Helsinki and other internationally recognized standards and delineated by The International
Conference on Harmonisation (ICH) Good Clinical Practice standards.
If
the FDA is satisfied with the results and data from pre-clinical tests, it will authorize human clinical trials. Human clinical trials
traditionally are conducted in three sequential phases which may overlap. Each of the three phases involves testing and study of specific
aspects of the effects of the investigational product on human subjects, including testing for safety, dosage tolerance, side effects,
absorption, metabolism, distribution, excretion, and clinical efficacy.
Phase
1 clinical trials include the initial introduction of an investigational new drug into humans, or via a new route of administration or
new organ system if previously investigated in humans. These studies are closely monitored and may be conducted in patients but may also
be conducted in healthy volunteer subjects. These studies are designed to determine the metabolic and pharmacologic actions of the drug
in humans, the side effects associated with increasing doses, and, if possible, to gain early evidence on effectiveness. While the FDA
can cause us to end clinical trials at any phase due to safety concerns, Phase 1 clinical trials are primarily concerned with safety
issues. We also attempt to obtain sufficient information about the drug candidates pharmacokinetics and pharmacological effects
during Phase 1 clinical trials to permit the design of scientifically valid, Phase 2 studies.
Phase
1 studies also evaluate drug metabolism, structure-activity relationships, and the mechanism of action in humans. These studies also
determine which investigational drugs are used as research tools to explore biological phenomena or disease processes. The total number
of subjects included in Phase 1 studies varies with the drug but is generally in the range of 10 to 80.
Phase
2 clinical trials include early controlled clinical studies conducted to obtain preliminary data on the effectiveness of the drug for
a particular indication or indications in patients with the disease or condition. This phase of testing also helps determine the common
short-term side effects and risks associated with the drug. Phase 2 studies are often randomized controlled studies that are closely
monitored and conducted in a relatively small number of patients, usually involving up to several hundred people.
Phase
3 studies are expanded controlled and uncontrolled trials. They are performed after preliminary evidence suggesting effectiveness of
the drug has been obtained in Phase 2 and are intended to gather definitive information about effectiveness and safety that is needed
to evaluate the overall benefit-risk relationship of the drug. Phase 3 studies also provide an adequate basis for extrapolating the results
to the general population and transmitting that information in physician labeling. Phase 3 studies usually include several hundred
to several thousand people.
| 9 | |
We
have established a core clinical development team and have been working with external and FDA-experienced consultants to assist us in
developing product-specific development and approval strategies, preparing the required submittals, guiding us through the regulatory
process, and providing input into the design and site selection of human clinical studies.
The
testing and approval process requires substantial time, effort, and financial resources, and we may not obtain FDA approval on a timely
basis, if at all. Success in non-clinical or early-stage clinical trials does not assure success in later-stage clinical trials. The
FDA or research institutions conducting the trials may suspend clinical trials or may not permit trials to advance from one phase to
another at any time for various reasons, including a finding that the subjects or patients are being exposed to an unacceptable health
risk. Once issued, the FDA may withdraw a prescription drug approval if we do not comply with pertinent regulatory requirements and standards
or if problems are identified after the product reaches the market. If the FDA grants approval of a prescription drug candidate, the
approval may impose limitations, including limits on the indicated uses for which we may market a drug product. In addition, the FDA
may require additional testing and surveillance programs to monitor the safety and/or effectiveness of approved drug products that have
been commercialized, and the agency has the power to prevent or limit further marketing of a product based on the results of these post-marketing
programs. Further, later discovery of previously unknown problems with a drug product may result in restrictions on the product, including
withdrawal from the market.
Marketing
our prescription drug candidates abroad will require similar regulatory approvals by equivalent national authorities and is subject to
similar risks. To expedite development, we may pursue some or all of our initial clinical testing and approval activities outside the
U.S., and in particular in those countries where our prescription drug candidates may have substantial medical and commercial relevance.
In some such cases, any resulting drug products may be brought to the U.S. after substantial offshore experience is gained. Accordingly,
we intend to pursue any such development in a manner consistent with U.S. and ICH standards so that the resultant development data is
maximally applicable for potential global approval.
**Additional
Regulation**
We
are subject to various federal, state, and local laws and regulations relating to the protection of the environment, human health, and
safety in the U.S. and in other jurisdictions in which we operate. If we violate these laws and regulations, we could be fined, criminally
charged, or otherwise sanctioned by regulators. Environmental laws and regulations are complex, change frequently and have become more
stringent over time. We believe that our operations currently comply in all material respects with applicable environmental laws and
regulations.
**Human
Capital Resources**
We
have six full-time employees who currently serve as CEO, CFO, CTO, president, senior scientist, and controller. We also engage an independent
contractor, who currently serves as an information technology manager.
We
believe the Companys success depends on its ability to attract, develop, and retain key personnel. The skills, experience, and
industry knowledge of key members of our Board of Directors, employees, and contractors significantly benefit our operations and performance.
The Companys Board of Directors and management oversee various employee and contractor initiatives.
**Available
Information**
Our
website is located at www.provectusbio.com. We make available free of charge through this website our annual reports on Form 10-K,
quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed with or furnished to the SEC pursuant
to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the Exchange Act), as soon as reasonably
practicable after they are electronically filed with or furnished to the SEC. Reference to our website does not constitute incorporation
by reference of the information contained on the site and should not be considered part of this document.
| 10 | |
The
SEC maintains an Internet site that contains reports, proxy and information statements and other information regarding issuers that file
electronically with the SEC as we do. The website is http://www.sec.gov.
The
Company also intends to use press releases, the Companys website and certain social media accounts as a means of disclosing
information and observations about the Company and its business, and for complying with the Companys disclosure obligations
under Regulation FD: the Provectus Substack account (provectus.substack.com), the @ProvectusBio X account
(twitter.com/provectusbio), and the Companys LinkedIn account (linkedin.com/company/provectus-biopharmaceuticals). The
information and observations that the Company posts through these social media channels may be deemed material. Accordingly,
investors should monitor these social media channels in addition to following the Companys press releases, SEC filings, and
website. The social media channels that the Company intends to use as a means of disclosing the information described above may be
updated from time to time.
The
contents of the websites provided above are not intended to be incorporated by reference into this Annual Report on Form 10-K or in any
other report or document we file with the SEC. Further, our references to the URLs for these websites are intended to be inactive textual
references only.
| 
ITEM
1A. | 
RISK
FACTORS. | |
Our
business and its future performance may be affected by various factors, the most significant of which are discussed below.
**Risks
Related to Our Business**
**We
are a clinical-stage drug company, have no prescription drug products approved for commercial sale, have incurred substantial losses,
and expect to incur substantial losses and negative operating cash flow for the foreseeable future.**
We
are a clinical-stage drug company that has no prescription drug products approved for commercial sale. We have never generated any substantial
revenues and may never achieve substantial revenues or profitability. As of December 31, 2025, we have incurred net losses of approximately
$263 million in the aggregate since inception in January 2002. We may never achieve or maintain profitability, even if we succeed in
developing and commercializing one or more of our prescription drug candidates. We also expect to continue to incur significant operating
expenditures and anticipate that our operating and capital expenses may increase substantially in the foreseeable future as we continue
to develop and seek regulatory approval for our prescription drug candidates, develop our prescription drug formulation candidates, implement
additional internal systems and infrastructure, and hire additional personnel.
We
also expect to experience negative operating cash flow for the foreseeable future as we fund our operating losses and any future capital
expenditures. As a result, we will need to generate significant revenues in order to achieve and maintain profitability. We may not be
able to generate these revenues or achieve profitability in the future. Our failure to achieve or maintain profitability could negatively
impact the value of our common stock.
**We
need additional capital to conduct our operations and commercialize and/or further develop our prescription drug candidates and prescription
drug formulation candidates in 2026 and beyond, and our ability to obtain the necessary funding is uncertain.**
We
need additional capital in 2026 and beyond to continue developing and seeking to commercialize our drug product candidates. We intend
to continue with the development of our prescription drug candidates and prescription drug formulation candidates on the basis of historical,
ongoing, and prospective clinical and non-clinical study results. However, we need to raise additional capital through public or private
offerings, debt financing, or other means in order to successfully implement our business plan and develop and market our products.
Such
financing may not be available on acceptable terms, or at all. As discussed in more detail below, additional equity financing could result
in significant dilution to stockholders. Further, in the event that additional funds are obtained through licensing or other arrangements,
these arrangements may require us to relinquish rights to some of our products, product candidates, and technologies that we would otherwise
seek to develop and commercialize ourselves. If sufficient capital is not available, we may be required to delay, reduce the scope of,
or eliminate one or more of our programs, any of which could have a material adverse effect on our business.
| 11 | |
**There
is substantial doubt as to our ability to continue as a going concern.**
The
Companys cash balance was $251,291 at December 31, 2025. Cash balances as of December 31, 2024 included $182,284 of
restricted cash associated with a grant received from the State of Tennessee. There was no restricted cash associated with the grant
received from the State of Tennessee as of December 31, 2025 due to the completion of the grant award program during 2025. The Companys working
capital deficit was $6,329,503 and $5,998,712 as of December 31, 2025 and 2024, respectively. The Company continues to incur
significant operating losses and management expects that significant on-going operating expenditures will be necessary to
successfully implement our business plan and develop and market our products. These circumstances raise substantial doubt about our
ability to continue as a going concern for a period of one year from the date that the consolidated financial statements included
elsewhere in this Annual Report on Form 10-K are issued. Implementation of our plans and our ability to continue as a going concern
will depend upon our ability to develop our prescription drug candidates and prescription drug formulation candidates, and to raise
additional capital.
Management
believes that we may have access to capital resources through possible public or private equity offerings, including the 2025 Financing,
exchange offers, debt financings, corporate collaborations, or other means. If we are unable to raise sufficient capital, we will not
be able to pay our obligations as they become due.
**Our
prescription drug product candidates are at early- to mid-stages of development and may never obtain U.S. or international regulatory
approvals required for us to commercialize our investigational drug product candidates.**
We
will need approval of the FDA to commercialize our prescription drug product candidates in the U.S. and approvals from FDA-equivalent
regulatory authorities in international jurisdictions to commercialize our investigational drug product candidates there.
We
are continuing to pursue clinical development of our most advanced drug product candidates, PV-10 and PH-10, for use as treatments for
specific disease indications. The continued and further development of these drug product candidates will require significant additional
research, formulation and manufacturing development, and pre-clinical and extensive clinical testing prior to their regulatory approval
and commercialization. Pre-clinical and clinical studies of our drug product candidates may not demonstrate the safety and efficacy necessary
to obtain regulatory approvals. Pharmaceutical and biotechnology companies have suffered significant setbacks in advanced clinical trials,
even after experiencing promising results in earlier trials. Pharmaceutical products that appear to be promising at early stages of development
may not reach the market or be marketed successfully for a number of reasons, including a product may be found to be ineffective or have
harmful side effects during subsequent pre-clinical testing or clinical trials, a product may fail to receive necessary regulatory clearance,
a product may be too difficult to manufacture on a large scale, a product may be too expensive to manufacture or market, a product may
not achieve broad market acceptance, others may hold proprietary rights that will prevent a product from being marketed, and others may
market equivalent or superior products.
Satisfaction
of the FDAs regulatory requirements typically takes many years, depends upon the type, complexity, and novelty of the product candidate,
and requires substantial resources for research, development, and testing. We cannot predict whether our research and clinical approaches
will result in drugs that the FDA considers safe for humans and effective for indicated uses. The FDA has substantial discretion in the
drug approval process and may require us to conduct additional nonclinical and clinical testing or to perform post-marketing studies.
The approval process may also be delayed by changes in government regulation, future legislation or administrative action or changes
in FDA policy that occur prior to or during our regulatory review. Delays in obtaining regulatory approvals may delay commercialization
of, and our ability to derive revenues from our prescription drug candidates, impose costly procedures on us, and diminish any competitive
advantages that we may otherwise enjoy.
Our
research and product development efforts may not be successfully completed and may not result in any successfully commercialized drug
products. Further, after commercial introduction of a new drug product, discovery of problems through adverse event reporting could result
in restrictions on the product, including withdrawal from the market and, in certain cases, civil or criminal penalties.
| 12 | |
Even
if we comply with all FDA requests, we cannot be sure that we will ever obtain regulatory clearance for any of our drug product candidates.
Failure to obtain FDA approval of any of our prescription drug candidates will severely undermine our business by reducing our number
of saleable drug products and, therefore, corresponding revenues.
In
international jurisdictions, we must receive approval from the appropriate regulatory authorities before we can commercialize our prescription
drug candidates. International regulatory approval processes generally include all of the risks associated with the FDA approval procedures
described above.
Before
obtaining regulatory approval for the sale of our drug product candidates, including PV-10 and PH-10, we must conduct additional clinical
trials to demonstrate the safety and efficacy of our drug product candidates. Clinical testing is expensive, difficult to design and
implement, can take many years to complete and is uncertain as to timing and outcome. Competition in clinical development has made it
difficult to enroll patients at an acceptable rate in some of our clinical trials. Advances in medical technology could make our prescription
drug candidates obsolete prior to completion of clinical testing. A failure of one or more of our clinical trials may occur at any stage
of testing. The outcome of pre-clinical testing and early clinical trials may not be predictive of the success of later clinical trials,
and interim results of a clinical trial do not necessarily predict final results. Moreover, pre-clinical and clinical data are often
susceptible to varying interpretations and analyses, and many companies that have believed their product candidates performed satisfactorily
in pre-clinical studies and clinical trials have nonetheless failed to obtain marketing approval for their products. Product candidates
in later stages of clinical trials may fail to show the desired safety and efficacy characteristics despite having progressed satisfactorily
through pre-clinical studies and initial clinical testing. A number of companies in the pharmaceutical and biotechnology industries,
including those with greater resources and experience, have suffered significant setbacks in Phase 3 clinical development, even after
seeing promising results in earlier clinical trials.
Our
research and development expenses may increase in connection with expanding clinical trials of our product candidates in existing indications
and undertaking clinical trials of our product candidates in new indications. Because successful development of our drug product candidates
is uncertain, we are unable to estimate the actual funds required to complete research and development and commercialize our products
under development.
Negative
or inconclusive results of our future clinical trials of PV-10 and PH-10, or any other clinical trial we conduct, could cause the FDA
to require that we repeat or conduct additional clinical studies. Despite the results reported in earlier clinical trials for PV-10 and
PH-10, we do not know whether any clinical trials we may conduct will demonstrate adequate efficacy and safety to result in regulatory
approval to market our product candidates. If later stage clinical trials do not produce favorable results, our ability to obtain regulatory
approval for our product candidates may be adversely impacted.
**Delays
in clinical trials are common and have many causes, and any delay could result in increased costs to us and jeopardize or delay our ability
to obtain regulatory approval.**
Our
planned or ongoing clinical trials may not begin on time, have an effective design, enroll a sufficient number of subjects, or be completed
on schedule, if at all. Events which may result in delays or unsuccessful completion of clinical trials, including our future clinical
trials, include inability to raise funding, initiate or continue a trial, delays in obtaining regulatory approval to commence a trial,
delays in reaching agreement with the FDA or other regulatory authorities on final trial design, imposition of a clinical hold following
an inspection of our clinical trial operations or trial sites by the FDA or other regulatory authorities, delays in reaching agreement
on acceptable terms with prospective contract research organizations and clinical trial sites, delays in obtaining required institutional
review board approval at each site, delays in recruiting suitable patients to participate in a trial, delays in having subjects complete
participation in a trial or return for post-treatment follow-up, delays caused by subjects dropping out of a trial, delays caused by
clinical sites dropping out of a trial, time required to add new clinical sites or to obtain regulatory approval and open sites in geographic
regions beyond the sites initially planned, and delays by our contract manufacturers to produce and deliver sufficient supply of clinical
trial materials.
| 13 | |
In
addition, we may experience a number of unforeseen events during clinical trials for our prescription drug candidates, including PV-10
and PH-10, that could delay or prevent the commencement and/or completion of our clinical trials, including regulators or institutional
review boards may not authorize us or our investigators to commence a clinical trial or conduct a clinical trial at a prospective trial
site, the clinical study protocol may require one or more amendments delaying study completion, clinical trials of our product candidates
may produce negative or inconclusive results, and we may decide, or regulators may require us to conduct additional clinical trials or
abandon product development programs, the number of subjects required for clinical trials of our product candidates may be larger than
we anticipate, subjects may drop out of these clinical trials at a higher rate than we anticipate and enrollment in these clinical trials
may be significantly slower than we anticipated requiring us to expand the geographic scope of enrollment of patients, clinical investigators
or study subjects may fail to comply with clinical study protocols, trial conduct and data analysis errors may occur, including, but
not limited to, data entry and/or processing errors, our third-party contractors may fail to comply with regulatory requirements or meet
their contractual obligations to us in a timely manner, or at all, we might have to suspend or terminate clinical trials of our prescription
drug candidates for various reasons, including a finding that the subjects are being exposed to unacceptable health risks, regulators
or institutional review boards may require that we or our investigators suspend or terminate clinical research for various reasons, including
noncompliance with regulatory requirements, the cost of clinical trials of our prescription drug candidates may be greater than we anticipate,
the supply or quality of our clinical trial materials or other materials necessary to conduct clinical trials of our prescription drug
candidates may be insufficient or inadequate, and our prescription drug candidates may have undesirable side effects or other unexpected
characteristics, causing us or our investigators to suspend or terminate the trials.
Moreover,
we or the FDA may suspend our clinical trials at any time if it appears we are exposing participants to unacceptable health risks or
if the FDA finds deficiencies in our submissions or the conduct of these trials. If initiation or completion of any of our clinical trials
for our product candidates, are delayed for any of the above reasons or other reasons, our development costs may increase, the approval
process could be delayed, any periods during which we may have the exclusive right to commercialize our prescription drug candidates
may be reduced and our competitors may bring drug products to market before us. Any of these events could impair our ability to generate
revenues from drug product sales and impair our ability to generate regulatory and commercialization milestones and royalties, all of
which could have a material adverse effect on our business.
**The
results of our clinical trials may not support acceptable label claims concerning our prescription drug candidates.**
Even
if our clinical trials are completed as planned, we cannot be certain that their results will support acceptable label claims concerning
our drug product candidates. Success in pre-clinical testing and early clinical trials does not ensure that later clinical trials will
be successful, and we cannot be sure that the results of later clinical trials will replicate the results of prior clinical trials and
pre-clinical testing. The clinical trial process may fail to demonstrate that our prescription drug candidates are safe for humans or
effective for indicated uses.
This
failure could cause us to abandon a prescription drug candidate and may delay development of other prescription drug candidates. Any
delay in, or termination of, our clinical trials will delay our ability to commercialize our prescription drug candidates and generate
product revenues. In addition, we anticipate that our clinical trials will involve only a small patient population. Accordingly, the
results of such trials may not be indicative of future results over a larger patient population.
**Physicians
and patients may not accept and use our prescription drug candidates.**
Even
if the FDA approves our drug product candidates, physicians and patients may not accept and use them. Acceptance and use of our drug
products will depend upon a number of factors including perceptions by members of the healthcare community, including physicians, about
the safety and effectiveness of our drug products, availability of reimbursement for our drug products from government or other healthcare
payers, and effectiveness of marketing and distribution efforts by us and our licensees and distributors, if any.
Because
we expect sales or licensure of our prescription drug candidates to generate substantially all of our revenues if they are approved,
the failure of any of these drugs to find market acceptance would harm our business and could require us to seek additional financing.
| 14 | |
****
**We
have no sales, marketing, or distribution capabilities for our prescription drug candidates.**
We
currently have no sales, marketing, or distribution capabilities. Our future success depends, in part, on our ability to enter into and
maintain collaborative relationships, the collaborators strategic interest in the prescription drug products under development
and such collaborators ability to successfully market and sell any such drug products. There can be no assurance that we will
be able to establish or maintain relationships with third party collaborators or develop in-house sales and distribution capabilities.
To the extent that we depend on third parties for marketing and distribution, any revenues we receive will depend upon the efforts of
such third parties, and there can be no assurance that such efforts will be successful. In addition, there can also be no assurance that
we will be able to market and sell our prescription drug candidates in the U.S. or internationally.
**Competition
in the prescription pharmaceutical and biotechnology industries is intense.**
Other
pharmaceutical and biotechnology companies and research organizations currently engage in or have in the past engaged in research efforts
related to treatment of cancer and dermatological conditions, which may compete with our clinical trials for patients and investigator
resources, cause lower enrollment than anticipated, and could lead to the development of drug products or treatment therapies that could
compete directly with our drug product candidates that we are seeking to develop and market.
Many
companies are also developing novel therapies to treat cancer and dermatological conditions and, in this regard, are our competitors.
Many of the pharmaceutical companies developing and marketing these competing products have greater financial resources and expertise
than we do in research and development, manufacturing, non-clinical and clinical testing, obtaining regulatory approvals, and marketing.
Smaller
companies may also prove to be competitors, particularly through collaborative arrangements with larger and more established companies
that may compete with our efforts to establish similar collaborative arrangements. Academic institutions, government agencies, and other
public and private research organizations may also conduct research, seek patent protection, and establish collaborative arrangements
for research, clinical development, and marketing of prescription drug candidates similar to ours. These companies and institutions compete
with us in recruiting and retaining qualified scientific and management personnel as well as in acquiring technologies complementary
to our drug development programs.
In
addition to the above factors, we expect to face competition in product efficacy and safety, the timing and scope of regulatory consents,
availability of resources, reimbursement coverage, price, and patent position, including potentially dominant patent positions of others.
Since
our prescription drug candidates PV-10 and PH-10 have not yet been approved by the FDA or introduced to the marketplace, we cannot estimate
what competition these prescription drug candidates might face when they are finally introduced, if at all. We cannot assure you that
these prescription drug candidates will not face significant competition for other approved drug products, investigational drug products,
and generic equivalents.
**If
we lose any of our key personnel, we may be unable to successfully execute our business plan.**
Our
business is presently managed by key Board members and employees: (i) Ed Pershing, who is CEO and chairman of the Board, (ii) Dominic
Rodrigues, who is President and vice chairman of the Board, (iii) Eric Wachter, Ph.D., our CTO, and (iv) Heather Raines, CPA, our CFO.
In
order to successfully execute our business plan, our management and Board must succeed in all of the following critical areas: researching
diseases and possible therapies in the areas of oncology and dermatology, developing our prescription drugs candidates, marketing and
selling developed prescription drug candidates, obtaining additional capital to finance research and development production, and marketing
of our drug products, and managing our business as it grows.
Disruption
resulting from management transition may have a detrimental impact on our ability to implement our strategy. The reduction in role and/or
loss of key employees, contractors, and/or Board members could have a material adverse effect on our operations, and limit or constrain
our ability to execute our business plan.
| 15 | |
**Our
business and operations are subject to risks related to climate change.**
The
long-term effects of global climate change present risks to our business. Extreme weather or other conditions caused by climate change
could adversely impact our supply chain and the operation of our business. Such conditions could also result in physical damage to our
leased property, clinical trial materials, clinical sites, or the facilities of our contract manufacturers. These events could adversely
affect our operations and our financial performance.
**Our
business and operations are vulnerable to computer system failures, cyber-attacks, or deficiencies in our cyber-security, which could
increase our expenses, divert the attention of our management and key personnel away from our business operations and adversely affect
our results of operations.**
Despite
the implementation of security measures, our internal computer systems, and those of third parties on which we rely, are vulnerable to
damage from: computer viruses; malware; natural disasters; terrorism; war; telecommunication and electrical failures; cyber-attacks or
cyber-intrusions over the Internet; attachments to emails; persons inside our organization; or persons with access to systems inside
our organization. The risk of a security breach or disruption, particularly through cyber-attacks or cyber intrusion, including by computer
hackers, foreign governments, and cyber terrorists, has generally increased as the number, intensity and sophistication of attempted
attacks and intrusions from around the world have increased. If such an event were to occur and cause interruptions in our operations,
it could result in a material disruption of our product development programs. For example, the loss of clinical trial data from completed
or ongoing or planned clinical trials could result in delays in our regulatory approval efforts and significantly increase our costs
to recover or reproduce the data. To the extent that any disruption or security breach was to result in a loss of or damage to our data
or applications, or inappropriate disclosure of confidential or proprietary information, we could incur material legal claims and liability,
and damage to our reputation, and the further development of our product candidates could be delayed. We could be forced to expend significant
resources in response to a cyber security breach, including repairing system damage, increasing cyber security protection costs by deploying
additional personnel and protection technologies, paying regulatory fines, and resolving legal claims and regulatory actions, all of
which would increase our expenses, divert the attention of our management and key personnel away from our business operations and adversely
affect our results of operations.
**Risks
Related to Our Intellectual Property (IP)**
**If
we are unable to secure or enforce patent rights, trademarks, trade secrets or other IP, our business could be harmed.**
We
may not be successful in securing or maintaining proprietary patent protection for our prescription drug candidates and technologies
we develop or license. In addition, our competitors may develop prescription drug candidates similar to ours using methods and technologies
that are beyond the scope of our IP protection, which could reduce our anticipated sales. While some of our drug product candidates have
proprietary patent protection, a challenge to these patents can subject us to expensive litigation. Litigation concerning patents, other
forms of IP, and proprietary technology is becoming more widespread and can be protracted and expensive and can distract management and
other personnel from performing product development duties.
We
also rely upon trade secrets, unpatented proprietary knowledge and continuing technological innovation to develop a competitive position.
We cannot assure you that others will not independently develop substantially equivalent proprietary technology and techniques or otherwise
gain access to our trade secrets and technology, or that we can adequately protect our trade secrets and technology.
If
we are unable to secure or enforce patent rights, trademarks, trade secrets, or other IP, our business, financial condition, results
of operations and cash flows could be materially adversely affected. If we infringe on the IP of others, our business could be harmed.
We
could be sued for infringing patents and other IP that purportedly cover prescription drug candidates and/or methods of using such prescription
drug candidates held by persons other than us. Litigation arising from an alleged infringement could result in removal from the market,
or a substantial delay in, or prevention of, the introduction of our prescription drug candidates, any of which could have a material
adverse effect on our business, financial condition, results of operations, and cash flows.
| 16 | |
**If
we do not update and enhance our technologies, they will become obsolete.**
The
pharmaceutical market is characterized by technological change, and our future success will depend on our ability to conduct successful
research in our fields of expertise, discover new technologies as a result of that research, develop products based on our technologies,
and commercialize those products. While we believe that our current technology is adequate for our present needs, if we fail to stay
at the forefront of technological development, we will be unable to compete effectively. Our competitors may use greater resources to
develop new pharmaceutical technologies and to commercialize products based on those technologies. Accordingly, our technologies may
be rendered obsolete by advances in existing technologies or the development of different technologies by one or more of our current
or future competitors.
**Risks
Related to Our Governing Documents and Securities**
**Anti-takeover
provisions in our organizational documents and Delaware law may discourage or prevent a change of control, even if an acquisition would
be beneficial to our stockholders, which could affect our stock price adversely and prevent attempts by our stockholders to replace or
remove our current management.**
Our
certificate of incorporation, as amended, and bylaws contain provisions that could delay or prevent a change of control of our company
or changes in our board of directors that our stockholders might consider favorable. Among other things, these provisions will (i) permit
our Board to issue up to 25,000,000 shares of preferred stock which can be created and issued by the Board without prior stockholder
approval, with rights senior to those of the common stock, (ii) provide that all vacancies on our Board, including as a result of newly
created directorships, may, except as otherwise required by law, be filled by the affirmative vote of a majority of directors then in
office, even if less than a quorum, (iii) require that any action to be taken by our stockholders must be affected at a duly called annual
or special meeting of stockholders and not be taken by written consent, (iv) provide that stockholders seeking to present proposals before
a meeting of stockholders or to nominate candidates for election as directors at a meeting of stockholders must provide advance notice
in writing, and also specify requirements as to the form and content of a stockholders notice, (v) not provide for cumulative
voting rights, and (vi) provide that special meetings of our stockholders may be called only by the Board or by such person or persons
requested by a majority of the Board to call such meetings.
These
and other provisions in our certificate of incorporation, as amended, and bylaws and Delaware law could make it more difficult for stockholders
or potential acquirers to obtain control of our Board or initiate actions that are opposed by our then-current Board, including delaying
or impeding a merger, tender offer, or proxy contest involving our company. Any delay or prevention of a change of control transaction
or changes in our Board could cause the market price of our common stock to decline.
**Our
stock price is below $5.00 per share and is treated as a penny stock, which places restrictions on broker-dealers recommending
the stock for purchase.**
Our
common stock is defined as penny stock under the Exchange Act and its rules. The SEC has adopted regulations that define
penny stock to include common stock that has a market price of less than $5.00 per share, subject to certain exceptions.
These rules include the following requirements: (i) broker-dealers must deliver, prior to the transaction, a disclosure schedule prepared
by the SEC relating to the penny stock market, (ii) broker-dealers must disclose the commissions payable to the broker-dealer and its
registered representative, (iii) broker-dealers must disclose current quotations for the securities, and (iv) a broker-dealer must furnish
its customers with monthly statements disclosing recent price information for all penny stocks held in the customers account and
information on the limited market in penny stocks.
Additional
sales practice requirements are imposed on broker-dealers who sell penny stocks to persons other than established customers and accredited
investors. For these types of transactions, the broker-dealer must make a special suitability determination for the purchaser and must
have received the purchasers written consent to the transaction prior to sale. If our common stock remains subject to these penny
stock rules these disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for our
common stock. As a result, fewer broker-dealers may be willing to make a market in our stock, which could affect a shareholders
ability to sell their shares.
| 17 | |
**Future
sales by our stockholders may adversely affect our stock price and our ability to raise funds in new stock offerings.**
Sales
of our common stock in the public market following any prospective offering could lower the market price of our common stock. Sales may
also make it more difficult for us to sell equity securities or equity-related securities in the future at a time and price that our
management deems acceptable.
**It
is our general policy to retain any earnings for use in our operation.**
We
have never declared or paid cash dividends on our common stock. We currently intend to retain all of our future earnings, if any, for
use in our business and therefore do not anticipate paying any cash dividends on our common stock in the foreseeable future.
**In
the event of the liquidation, winding-up or dissolution of the Company or certain mergers, corporate reorganizations or sales of our
assets, holders of Series D and Series D-1 Preferred Stock will be entitled to a preference of a multiple of their investment amount,
which will reduce the proceeds to be received by holders of our common stock.**
In
connection with the 2025, 2024, 2022, 2021, 2020 and 2017 Financings, we have issued convertible notes that converted or are convertible
into shares of Series D and Series D-1 Preferred Stock. The Series D and Series D-1 Preferred Stock will have a first priority right
to receive proceeds from the liquidation, winding-up or dissolution of us or certain mergers, corporate reorganizations, or sales of
our assets (each, a Company Event). If a Company Event occurs within two (2) years of the date of issuance of the Series
D and Series D-1 Preferred Stock (the Date of Issuance), the holders of Series D and Series D-1 Preferred Stock will receive
a preference of four times (4x) their respective investment amount. If a Company Event occurs after the second (2nd) anniversary of the
Date of Issuance, the holders of the Series D and Series D-1 Preferred Stock will receive a preference of six times (6x) their respective
investment amount. As a result, upon the occurrence of a Company Event, the holders of Series D and Series D-1 Preferred Stock would
have the right to receive proceeds from any such transaction before our common stockholders. The payment of this preference could result
in our common stockholders not receiving any consideration in connection with a Company Event.
| 
ITEM
1B. | 
UNRESOLVED
STAFF COMMENTS. | |
None.
| 
ITEM
1C. | 
CYBERSECURITY. | |
****
**Cybersecurity
Risk Management and Strategy**
Provectus
Biopharmaceuticals understands the importance of managing risks from cybersecurity threats and maintains a comprehensive cybersecurity
program developed with reference to the National Institute of Standards and Technology (NIST) cybersecurity framework.
Our cybersecurity program includes administrative, organizational, technical, and physical safeguards reasonably designed to protect
the confidentiality, integrity, and availability of our data. We devote significant resources to network, operations, and product security,
data encryption, business continuity/disaster recovery, vulnerability management, event monitoring and incident response, and other measures
to protect our systems and data from unauthorized external access or internal misuse.
Our
use of information systems for accessing, transmitting, and storing data is a vital aspect of our business operations. Information systems
can be vulnerable to a range of cybersecurity threats that could potentially have a material impact on our business, results of operations,
and financial condition.
| 18 | |
Cybersecurity
is a key category within our risk management efforts, and our cybersecurity risk management is intended to assist in assessing, identifying,
and managing material risks from cybersecurity threats to the Companys information systems. Our cybersecurity risk management
and strategy are based upon utilizing systems that are cloud-based which require multifactor authentication to access. Due to our small
size, we partner with a third-party service provider which utilizes multiple security operations centers. The security operations centers
maintain, monitor, mitigate, and alert on threats against the cloud systems that we utilize. If a risk is identified, the security operations
center has the ability to shut down access to any user in the Company.
The
Audit Committee of our Board of Directors is responsible for oversight of the Companys cybersecurity risk management. Managements
role is to assist the Audit Committee in identifying and considering material cybersecurity risks, ensure implementation of management-
and employee-level cybersecurity practices and training, and provide the Audit Committee with unrestricted access to Company personnel
and documents regarding any cybersecurity attacks or vulnerabilities.
We
also require our employees to participate in cybersecurity training and awareness programs. The Companys employees are expected
to help safeguard the Companys information systems and to assist in the discovery and reporting of cybersecurity incidents. These
programs are intended to decrease cybersecurity risks associated with human error and foster a culture of cybersecurity consciousness.
To
date, the risks from cybersecurity threats, including because of any previous immaterial cybersecurity incidents, have not materially
affected nor are reasonably likely to materially affect our business strategy, results of operations, or financial condition. While our
insurance covers certain cyber-security-related matters, the costs related to cybersecurity threats or disruptions may not be fully insured.
| 
ITEM
2. | 
PROPERTIES. | |
On
June 18, 2022, the Company moved into 2,700 square feet of leased corporate office space in Knoxville, Tennessee through an operating
lease agreement for a term of three years ending June 30, 2025. The monthly base rent ranged from $4,053 to $4,278 over the term on the
lease.
On
April 24, 2025, the Company entered into the first amendment to its operating lease agreement, extending the lease term by an additional
three years through June 30, 2028. Pursuant to the amendment, monthly base rent will range from $4,391 to $4,616 over the extended term.
| 
Item
3. | 
Legal
Proceedings. | |
The
information required by this item is incorporated by reference from Part II, Item 8. Financial Statements and Supplementary Data, Notes
to Consolidated Financial Statements, Note 16 Commitments, Contingencies, and Litigation.
None.
| 
ITEM
4. | 
MINE
SAFETY DISCLOSURES. | |
Not
applicable.
| 19 | |
****
**PART
II**
| 
ITEM
5. | 
MARKET
FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES. | |
**Market
Information and Holders**
Our
common stock trades on the OTCQB Marketplace under the symbol PVCT.
As
of March 23, 2026, we had 775 active stockholders of record of our common stock.
**Dividend
Policy**
We
have never declared or paid any cash dividends on our common stock. We currently plan to retain future earnings, if any, to finance the
growth and development of our business and do not anticipate paying any cash dividends in the foreseeable future. We may incur indebtedness
in the future which may prohibit or effectively restrict the payment of dividends, although we have no current plans to do so. Any future
determination to pay cash dividends will be at the discretion of our Board of Directors. The holders of our Series D and Series D-1 Preferred
Stock are entitled to receive dividends, if any, that are declared and paid to common stockholders.
**Securities
Authorized for Issuance under Equity Compensation Plans**
Information
about the securities authorized for issuance under our equity compensation plans will be set forth under the heading Equity Compensation
Plan Information in the definitive Proxy Statement for our 2025 Annual Meeting of Stockholders, which will be filed with the SEC
pursuant to Regulation 14A under the Exchange Act, incorporated by reference in Part III, Item 12 of this Annual Report on Form 10-K.
| 
ITEM
6. | 
[RESERVED]. | |
Not
applicable.
| 
ITEM
7. | 
MANAGEMENTS
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. | |
The
following discussion is intended to assist in the understanding and assessment of significant changes and trends related to our results
of operations and our financial condition together with our consolidated subsidiaries. This discussion and analysis should be read in
conjunction with the accompanying consolidated financial statements and notes thereto included in the Annual Report on Form 10-K. Historical
results and percentage relationships set forth in the statements of operations, including trends which might appear, are not necessarily
indicative of future operations.
**Business
Strategy**
The
Company is selectively continuing ongoing and planning to initiate new monotherapy and/or combination therapy ITU PV-10 clinical trials
of solid tumor cancer indications to generate more and/or new clinical data and appropriately utilizing clinical data from historical
ITU PV-10 trials, EAPs, and/or QOL study of these oncology indications. Our goals are to pursue drug approval pathways and/or co-development
relationships with commercial pharmaceutical companies for ITU PV-10 based on these indications and data.
The
Company is developing a systemically administered formulation of pharmaceutical-grade RBS for the treatment of cancer. Our goals, when
this work is complete, are to file an investigational new drug application (IND) with the U.S. Food and Drug Administration
(FDA), take an initial systemic drug candidate into an early-stage clinic trial for an initial oncology or hematology indication,
and/or pursue a co-development collaboration or out-license arrangement for this route of administration and disease area.
| 20 | |
The
Company is developing different formulations of pharmaceutical-grade RBS using different concentrations and different routes of administration
for other disease areas by endeavoring to show non-clinical activity and lack of toxicity. Our goals, when each task of this work is
completed, are to file an IND with the FDA, take an initial drug candidate into an early-stage clinic trial for an initial indication,
and/or pursue a co-development collaboration or out-license arrangement for the respective disease area and route of administration.
The
Company is endeavoring to fully elucidate the traits and characteristics of the RBS molecule using different academic medical centers
under sponsored research and testing agreements. Our goal is to gain and communicate additional knowledge of the RBS molecules
targeting, mechanism, signaling, immune response, and other features that are common to and/or different from each disease area and indication
under research.
The
Company is doing rigorous chemical analytical comparisons of non-pharmaceutical grades of rose bengal from specialty chemical suppliers
against the Companys pharmaceutical-grade RBS. Our goal is to demonstrate the proprietary nature of the Companys pharmaceutical-grade
RBS and that our pharmaceutical-grade RBS meets the necessary uniformity and purity requirements for commercial pharmaceutical use.
**RBS
API and Drug Candidate Manufacturing**
Our
pharmaceutical-grade RBS resulted from the Companys innovation of a proprietary, patented, commercial-scale process to synthesize
and utilize the RBS molecule into a viable active pharmaceutical ingredient (API) for commercial pharmaceutical use; the
development of unique chemistry, manufacturing, and control (CMC) specifications for API and drug candidate manufacturing
processes; the production and multi-year stability testing of multiple API and drug candidate lots; the comprehensive documentation of
lot composition and reproducibility; and the review and acceptance of CMC data from these lots by seven different national drug regulatory
agencies for use in a prior, multi-country, multi-center Phase 3 randomized control trial of the Company.
The
Companys API and drug candidate manufacturing processes employ Quality-by-Design principles, current good manufacturing practice
(cGMP) regulations, and the guidelines of The International Council for Harmonization (ICH) of Technical Requirements for
Pharmaceuticals for Human Use. These processes utilize controls that eliminate the formation of historical impurities and avoid the introduction
of potentially hazardous impurities that the Company believes may have been and could be present in uncontrolled and unreported amounts
in non-pharmaceutical grades of rose bengal.
The
Companys processes of synthesizing the RBS molecule into pharmaceutical-grade RBS and manufacturing RBS API and ITU PV-10 drug
candidate, the processes CMC specifications, and the CMC data from the production of stability lots of API and drug candidate
have been reviewed by multiple national drug regulatory agencies prior to granting clinical trial authorizations for the Company to commence
a historical Phase 3 study of ITU PV-10 for the treatment of the Companys former lead indication of locally advanced cutaneous
melanoma, including the U.S. FDA, Germanys Bundesinstitut fr Arzneimittel und Medizinprodukte (BfArM), Australias
Therapeutic Goods Administration (TGA) under a clinical trial notification, Frances Agence Nationale de Scurit
du Mdicament et des Produits de Sant (ANSM), Italys Agenzia Italiana del Farmaco (AIFA), Mexicos Comisin
Federal para la Proteccin contra Riesgos Sanitarios (COFEPRIS), and Argentinas Administracin Nacional de Medicamentos,
Alimentos y Tecnologa Mdica (ANMAT).
**RBS
Non-proprietary Name**
The
RBS name for the Companys pharmaceutical-grade API was selected by and passed the review of the World Health Organization (WHO)
Expert Advisory Panel on the International Pharmacopoeia and Pharmaceutical Preparations after the Company applied for a non-proprietary
name in the third quarter of 2020 and reached the status of recommended International Non-proprietary Names (INN). INN
Recommended List 88, which includes the RBS name, was published with the No. 3 issue of the WHO Drug Information, Volume 36 in the fourth
quarter of 2022.
| 21 | |
**Non-Pharmaceutical
Grades of Rose Bengal**
*Commercial
Grade*
Commercial
grade rose bengal can be purchased from specialty chemical suppliers in the U.S. and in other parts of the world that manufacture it
under non-cGMP conditions. Commercial grade rose bengal appears to have reported purities that may vary between 80% and 95% and may contain
substantial amounts of unreported impurities and/or gross contaminants. Commercial grade rose bengal is typically used by researchers
unaffiliated with the Company for non-clinical study of the rose bengal molecule for potential biomedical therapeutic applications.
We
believe that commercial grade rose bengal is still manufactured using the original historical process, or a variant thereof, developed
by the molecules original Swiss creator Rudolph Gnehm in 1881. Some chemical manufacturers may, however, apply purification techniques
that the Company believes still result in commercial grade rose bengal possessing questionable purity and contaminants and substantial
lot-to-lot manufacturing variability.
*Diagnostic
Grade*
Diagnostic
grade rose bengal describes non-approved rose bengal that is used as an ingredient in historical or current ophthalmic solutions, strips,
and devices, has been historically or is presently compounded by pharmacists for ophthalmic use, and has been or is in other non-ophthalmic
diagnostic tests such as the rose bengal test for human brucellosis.
We
presume, but have not yet confirmed, that diagnostic grade rose bengal is derived from commercial grade rose bengal that may have undergone
a form of purification under cGMP regulations and/or may have been compounded by a pharmacist, academic medical researcher, or commercial
entity under cGMP regulations. Here too, the Company believes that purification may not sufficiently improve the amounts and accuracy
of diagnostic grade rose bengal purity and lot contents and may not adequately reduce or eliminate lot-to-lot manufacturing variability.
*Chemical
Analytical Comparison*
In
the first quarter of 2022, the Company began work with a U.S. contract development and manufacturing organization to assess rigorously
and methodically three lots of commercial grade rose bengal, one each from three different specialty chemical suppliers, and compare
these non-pharmaceutical grade materials with the Companys pharmaceutical-grade RBS. This chemical analytical work was substantially
completed by the end of the third quarter of 2022. The Company believes that the preliminary results of these analyses indicate that
all three lots of commercial grade rose bengal had rose bengal purity that was drastically different from what was represented on their
respective certificates of analysis (CofAs), and that one of the three lots contained gross contaminants that were not
represented on its CofA.
**Potential
Barriers to Entry**
The
Company believes that the Companys proprietary, patented, pharmaceutical-grade RBS possesses several competitive advantages over
non-pharmaceutical-grade rose bengal (i.e., commercial and diagnostic grades) that researchers, clinicians, and academic, business, and/or
governmental competitors have used, are using, and/or may attempt to use for potential biomedical applications. The Company believes
that non-pharmaceutical-grade rose bengal may suffer from the uncontrolled presence of substance-related impurities and/or gross contaminants,
substantial lot-to-lot manufacturing variability, inaccurately reported and/or misrepresented purity and contents, and the lack of reproducible,
consistent, and fulsome CMC specifications and documentation. The Company believes that historical and potentially hazardous impurities
and other manufacturing and handling issues facing non-pharmaceutical grade rose bengal may pose significant scientific, technological,
and economic challenges to overcome and validate for compliance with modern drug regulatory standards.
**Components
of Operating Results**
*Grant
Revenue*
Grant
revenue is recognized when qualifying costs are incurred and there is reasonable assurance that the conditions of the grant have been
met. Cash received from grants in advance of incurring qualifying costs is recorded as unearned grant revenue and recognized as grant
revenue when qualifying costs are incurred.
| 22 | |
**
*Research
and Development Expenses*
Research and development expenses include costs incurred in connection with research activities and the clinical
development of our product candidates. These expenses consist primarily of:
| 
| 
| 
costs
of conducting clinical trials, including amounts paid to clinical centers, clinical research organizations, and consultants, among
others; | |
| 
| 
| 
salaries
and related expenses for personnel, including stock-based compensation expense; | |
| 
| 
| 
other
outside service costs including cost of contract manufacturing; | |
| 
| 
| 
the
costs of supplies and reagents; and | |
| 
| 
| 
occupancy
and depreciation charges. | |
We
expense research and development costs as incurred.
Research
and development activities are central to our business model. We expect our research and development expenses to increase in the future
as we advance our existing product candidates through clinical trials and pursue their regulatory approval. Undertaking clinical development
and pursuing regulatory approval are both costly and time-consuming activities. As a result of known and unknown uncertainties, we are
unable to determine the duration and completion costs of our research and development activities, or if, when, and to what extent we
will generate revenue from any subsequent commercialization and sale of our drug product candidates.
*General
and Administrative Expenses*
General and administrative expenses consist primarily of personnel-related costs, including salaries, benefits, and
stock-based compensation, for employees engaged in executive and finance functions. General and administrative expenses also include facility-related
costs not otherwise included in research and development expenses, director fees, insurance costs, and professional fees for legal, patent,
accounting, information technology, corporate communications, and other consulting services provided by third-party firms.
****
**Comparison
of the Years Ended December 31, 2025 and 2024**
*Overview*
Refer
to tables below for year-over-year comparison of revenues and expenses.
| 
| | 
For the Years Ended | | | 
| | | 
| | |
| 
| | 
December 31, | | | 
| | | 
| | |
| 
| | 
2025 | | | 
2024 | | | 
Increase/(Decrease) | | | 
% Change | | |
| 
| | 
| | | 
| | | 
| | | 
| | |
| 
Grant Revenue | | 
$ | 336,108 | | | 
$ | 617,140 | | | 
$ | (281,032 | ) | | 
| -45.5 | % | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Operating Expenses: | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Research and development | | 
| 1,897,276 | | | 
| 2,050,663 | | | 
| (153,387 | ) | | 
| -7.5 | % | |
| 
General and administrative | | 
| 3,733,597 | | | 
| 3,098,861 | | | 
| 634,736 | | | 
| 20.5 | % | |
| 
Total Operating Expenses | | 
| 5,630,873 | | | 
| 5,149,524 | | | 
| 481,349 | | | 
| 9.3 | % | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Total Operating Loss | | 
| (5,294,765 | ) | | 
| (4,532,384 | ) | | 
| (762,381 | ) | | 
| -16.8 | % | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Other Income/(Expense): | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Research and development tax credit | | 
| - | | | 
| 9,320 | | | 
| (9,320 | ) | | 
| -100.0 | % | |
| 
Interest expense | | 
| (210,359 | ) | | 
| (239,073 | ) | | 
| 28,714 | | | 
| 12.0 | % | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Total Other Income (Expense), Net | | 
| (210,359 | ) | | 
| (229,753 | ) | | 
| 19,394 | | | 
| 8.4 | % | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Net Loss | | 
| (5,505,124 | ) | | 
| (4,762,137 | ) | | 
| (742,987 | ) | | 
| -15.6 | % | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Net loss attributable to noncontrolling interest | | 
| (74,273 | ) | | 
| (29,585 | ) | | 
| 44,688 | | | 
| 151.0 | % | |
| 
Net loss attributable to common stockholders | | 
$ | (5,430,851 | ) | | 
$ | (4,732,552 | ) | | 
$ | (698,299 | ) | | 
| -14.8 | % | |
| 23 | |
*Grant
Revenue*
For
the years ended December 31, 2025 and 2024, there was $336,108 and $617,140 respectively, of grant revenue recognized related to qualifying
expenses that were incurred and included within research and development on the consolidated statements of operations. The decrease of
$281,032 or 45.5% was primarily attributable to the completion and full recognition of grant revenue under the awarded program in 2025.
*Research
and Development*
Research
and development expenses decreased by $153,387, or 7.5%, to $1,897,276 for the year ended December 31, 2025, from $2,050,663 for the
year ended December 31, 2024. The decrease was primarily attributable to lower clinical trial and research-related costs following
the closure of certain studies. The decrease was also driven by reduced depreciation expense as certain assets became fully
depreciated during the period. In addition, insurance expense declined as a result of a change in insurance carriers, and
facility-related costs, including rent and utilities, were lower compared to the prior year and write-off of old accounts payable.
These decreases were partially offset by higher stock-based compensation expense and increased payroll-related costs. 
The
following table summarizes our research and development expenses incurred during the years ended December 31, 2025 and 2024:
| 
| | 
For the Years Ended | | | 
| | | 
| | |
| 
| | 
December 31, | | | 
| | | 
| | |
| 
| | 
2025 | | | 
2024 | | | 
Increase/(Decrease) | | | 
% Change | | |
| 
| | 
| | | 
| | | 
| | | 
| | |
| 
Operating Expenses: | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Research and development: | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Clinical trial and research expenses | | 
$ | 1,318,339 | | | 
$ | 1,463,422 | | | 
$ | (145,083 | ) | | 
| -9.9 | % | |
| 
Depreciation/amortization | | 
| - | | | 
| 5,294 | | | 
| (5,294 | ) | | 
| -100.0 | % | |
| 
Insurance | | 
| 179,358 | | | 
| 225,754 | | | 
| (46,396 | ) | | 
| -20.6 | % | |
| 
Payroll and taxes | | 
| 314,014 | | | 
| 270,360 | | | 
| 43,654 | | | 
| 16.1 | % | |
| 
Stock-based compensation | | 
| 54,108 | | | 
| 51,536 | | | 
| 2,572 | | | 
| 5.0 | % | |
| 
Rent and utilities | | 
| 31,457 | | | 
| 34,297 | | | 
| (2,840 | ) | | 
| -8.3 | % | |
| 
Total research and development | | 
$ | 1,897,276 | | | 
$ | 2,050,663 | | | 
$ | (153,387 | ) | | 
| -7.5 | % | |
*General
and Administrative*
General
and administrative expenses increased by $634,736, or 20.5%, to $3,733,597 for the year ended December 31, 2025, from $3,098,861 for
the year ended December 31, 2024. The increase in general and administrative expenses was primarily attributable to higher directors
fees resulting from the reversal of previously waived director fees for Mr. Horowitz following his resignation on March 25, 2024, as
well as increased payroll-related expenses associated with the appointment of new officers in April 2024. General and administrative
expenses also increased due to a donation made to the University of Miami, higher professional fees primarily related to audit services,
increased travel and entertainment expenses associated with investor meetings, and additional costs related to the implementation of
NetSuite during 2025. These increases were partially offset by lower insurance costs resulting from a change in insurance carriers, reduced
legal fees related to patent matters, and lower stock-based compensation expense primarily due to equity awards granted to two independent
directors in 2024 that did not recur in 2025, with equity awards in 2025 limited to executives and employees.
| 24 | |
The
following table summarizes our general and administrative expenses incurred during the years ended December 31, 2025 and 2024:
| 
| | 
For the Years Ended December 31, | | | 
| | | 
| | |
| 
| | 
2025 | | | 
2024 | | | 
Increase/(Decrease) | | | 
% Change | | |
| 
| | 
| | | 
| | | 
| | | 
| | |
| 
Operating Expenses: | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
General and administrative: | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Depreciation | | 
$ | 1,863 | | | 
$ | 1,863 | | | 
$ | 0 | | | 
| 0.0 | % | |
| 
Directors fees | | 
| 310,000 | | | 
| (121,250 | ) | | 
| 431,250 | | | 
| 355.7 | % | |
| 
Donations | | 
| 50,000 | | | 
| - | | | 
| 50,000 | | | 
| 100.0 | % | |
| 
Insurance | | 
| 122,089 | | | 
| 168,644 | | | 
| (46,555 | ) | | 
| -27.6 | % | |
| 
Legal and litigation | | 
| 450,496 | | | 
| 576,908 | | | 
| (126,412 | ) | | 
| -21.9 | % | |
| 
Other general and administrative cost | | 
| 140,240 | | | 
| 66,372 | | | 
| 73,868 | | | 
| 111.3 | % | |
| 
Payroll and taxes | | 
| 870,187 | | | 
| 644,479 | | | 
| 225,708 | | | 
| 35.0 | % | |
| 
Professional fees | | 
| 570,600 | | | 
| 512,500 | | | 
| 58,100 | | | 
| 11.3 | % | |
| 
Rent and utilities | | 
| 18,455 | | | 
| 19,314 | | | 
| (859 | ) | | 
| -4.4 | % | |
| 
Stock based compensation | | 
| 1,183,438 | | | 
| 1,229,250 | | | 
| (45,812 | ) | | 
| -3.7 | % | |
| 
Travel and entertainment | | 
| 16,229 | | | 
| - | | | 
| 16,229 | | | 
| 100.0 | % | |
| 
Foreign currency translation | | 
| - | | | 
| 791 | | | 
| (791 | ) | | 
| -100.0 | % | |
| 
Total general and administrative | | 
$ | 3,733,597 | | | 
$ | 3,098,861 | | | 
$ | 634,736 | | | 
| 20.5 | % | |
*Other
Income/(Expense)*
Research
and development tax credits in Australia were $0 for the year ended December 31, 2025, compared to $9,320 for the year ended December
31, 2024. The decrease was attributable to the absence of active clinical trials in Australia during the current period.
Interest
expense decreased by $28,714, or 12.0%, to $210,359 for the year ended December 31, 2025, from $239,073 for the year ended December 31,
2024. The decrease was primarily attributable to the conversion of the 2022 and 2024 Notes into shares of Series D-1 Preferred Stock
resulting in lower debt balances during the 2025 period.
The
following table summarizes our Other Income/(Expenses) incurred during the years ended December 31, 2025 and 2024:
| 
| | 
For the Years Ended | | | 
| | | 
| | |
| 
| | 
December 31, | | | 
Increase/ | | | 
| | |
| 
| | 
2025 | | | 
2024 | | | 
(Decrease) | | | 
% Change | | |
| 
Other Income/Expense): | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Research and development tax credit | | 
$ | - | | | 
$ | 9,320 | | | 
$ | (9,320 | ) | | 
| -100.0 | % | |
| 
Interest expense | | 
| (210,359 | ) | | 
| (239,073 | ) | | 
| 28,714 | | | 
| 12.0 | % | |
| 
Total Other Income/(Expense), Net | | 
$ | (210,359 | ) | | 
$ | (229,753 | ) | | 
$ | 19,394 | | | 
| 8.4 | % | |
| 25 | |
****
**Liquidity
and Going Concern**
Our
cash was $251,291 at December 31, 2025, compared to $489,726 at December 31, 2024. Cash balances as of December 31, 2024 included
$182,284 of restricted cash associated with a grant received from the State of Tennessee. There was no restricted cash associated
with the grant received from the State of Tennessee as of December 31, 2025 due to the completion of the grant award program during
2025.
The
consolidated financial statements and notes thereto included in this Annual Report on Form 10-K have been prepared on a basis that contemplates
the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. We have continuing net
losses and negative cash flows from operating activities. In addition, we have an accumulated deficit of $262,853,811 as of December
31, 2025. These conditions raise substantial doubt about our ability to continue as a going concern for a period of at least one year
from the date that the consolidated financial statements included elsewhere in this Annual Report on Form 10-K are issued. Our consolidated
financial statements do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary
should we be unable to continue as a going concern. Our ability to continue as a going concern depends on our ability to obtain additional
financing as may be required to fund current operations.
Managements
plans include selling our equity securities and obtaining other financing to fund our capital requirements and on-going operations, including
the 2025 Financing discussed above; however, there can be no assurance we will be successful in these efforts. Significant funds will
be needed to continue and complete our ongoing and planned clinical trials.
As
of December 31, 2025, cash requirements for our current liabilities include approximately $3,925,681 for accounts payable and other
accrued expenses (including lease liabilities) and a $217,772 note payable related to our financing of our commercial insurance
policies and purchased software. Also, a related party convertible note payable in the amount of $100,000 plus approximately $59,444
of related interest is past due. Additional related and non-related convertible debt in the amount of $2,510,000 plus $107,824 of
accrued interest will mature one year from the date of the notes if not converted prior to maturity.
*Access
to Capital*
Management
plans to access capital resources through possible public or private equity offerings, including the 2025 Financing, exchange offers,
debt financings, corporate collaborations, or other means. If we are unable to raise sufficient capital through the 2025 Financing or
otherwise, we will not be able to pay our obligations as they become due.
The
primary business objective of management is to build the Company into a commercial-stage biotechnology company; however, we cannot assure
you that management will be successful in implementing the Companys business plan of developing, licensing, and/or commercializing
our prescription drug candidates. Moreover, even if we are successful in improving our current cash flow position, we nonetheless plan
to seek additional funds to meet our current and long-term requirements in 2026 and beyond. We anticipate that these funds will otherwise
come from the proceeds of private placement transactions, including the 2025 Financing, exercise of outstanding stock options, or public
offerings of debt or equity securities. While we believe that we have a reasonable basis for our expectation that we will be able to
raise additional funds, we cannot assure you that we will be able to complete additional financing in a timely manner. In addition, any
such financing may result in significant dilution to stockholders.
During
the years ended December 31, 2025 and 2024, our sources and uses of cash were as follows:
*Net
Cash Used in Operating Activities*
We
experienced negative cash flows from operating activities for the years ended December 31, 2025 and 2024 in the amounts of
$3,325,991 and $3,284,091, respectively. The net cash used in operating activities for the year ended December 31, 2025 was
primarily due to cash used to fund a net loss of $5,505,123, adjusted for non-cash items in the aggregate amount of $1,287,537 mainly driven by stock-based compensation,
plus $891,595 of cash generated from changes in the levels of operating assets and liabilities. The net cash used in operating
activities for the year ended December 31, 2024 was primarily due to cash used to fund a net loss of $4,762,137, adjusted for
non-cash expenses in the aggregate amount of $1,335,335 mainly driven by stock-based compensation, plus $142,711 of cash generated from changes in the levels of operating
assets and liabilities.
*Net
Cash Provided by Financing Activities*
Net
cash provided by financing activities during the years ended December 31, 2025 and 2024 was $3,087,006 and $2,747,865, respectively.
During the year ended December 31, 2025, we received $2,510,000 proceeds from the issuance of convertible notes payable, $850,000 from
the issuance of common stock of our majority-owned subsidiary, VisiRose, and offset by $272,994 for the repayment of the short-term note payable.
During the year ended December 31, 2024, we received $2,853,000 proceeds from the issuance of convertible notes payable and received
$300,000 from the issuance of common stock of our majority-owned subsidiary, VisiRose. These cash proceeds were offset by the $305,135
repayment of a short-term note payable, and the $100,000 repayment of a 2021 convertible note payable.
**Critical
Accounting Estimates**
We
prepare our consolidated financial statements in accordance with U.S. 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 consolidated financial statements that require estimation
but are not deemed critical, as defined above.
| 
ITEM
7A. | 
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. | |
Not
applicable.
| 26 | |
| 
ITEM
8. | 
FINANCIAL
STATEMENTS AND SUPPLEMENTARY DATA. | |
**INDEX
TO FINANCIAL STATEMENTS**
| 
| 
Page | |
| 
| 
| |
| 
Report of Independent Registered Public Accounting Firm (CBIZ CPAs P.C., PCAOB ID No. 199) | 
F-1 | |
| 
| 
| |
| 
Report of Independent Registered Public
Accounting Firm (Marcum LLP, PCAOB ID No. 688) | 
F-2 | |
| 
| 
| |
| 
Consolidated Balance Sheets as of December 31, 2025 and 2024 | 
F-3 | |
| 
| 
| |
| 
Consolidated Statements of Operations for the Years Ended December 31, 2025 and 2024 | 
F-4 | |
| 
| 
| |
| 
Consolidated Statements of Comprehensive Loss for the Years Ended December 31, 2025 and 2024 | 
F-5 | |
| 
| 
| |
| 
Consolidated Statements of Changes In Stockholders Deficit for the Years Ended December 31, 2025 and 2024 | 
F-6 | |
| 
| 
| |
| 
Consolidated Statements of Cash Flows for the Years Ended December 31, 2025 and 2024 | 
F-7 | |
| 
| 
| |
| 
Notes to Consolidated Financial Statements | 
F-8
F-28 | |
| 27 | |
****
**REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**
To
the Stockholders and Board of Directors of
Provectus
Biopharmaceuticals, Inc.
**Opinion
on the Financial Statements**
We have audited the accompanying consolidated balance sheet of Provectus Biopharmaceuticals,
Inc. (the Company) as of December 31, 2025, the related consolidated statements of operations, comprehensive loss, changes
in stockholders deficit and cash flows for the year then ended, and the related notes (collectively referred to as the financial
statements). In our opinion, based on our audit, the financial statements present fairly, in all material respects, the financial
position of the Company as of December 31, 2025, and the results of its operations and its cash flows for the year then ended December
31, 2025, in conformity with accounting principles generally accepted in the United States of America.
As
discussed in Notes 2 and 11 to the financial statements, the Company adopted ASU 2023-09, Income Taxes (Topic 740): *Improvements to
Income Tax Disclosures* (ASU 2023-09). We have also audited the adjustments to the 2024 financial statements retrospectively adjust the disclosures for the adoption of ASU 2023-09 in 2025. In our opinion, such retrospective adjustments are appropriate and
have been properly applied. We were not engaged to audit, review, or apply any procedures to the 2024 financial statements of the Company
other than with respect to these retrospective adjustments, and accordingly, we do not express an opinion or any other form of assurance
on the 2024 financial statements taken as a whole.
**Explanatory
Paragraph Going Concern**
The
accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As
more fully described in Note 2, the Company has a significant working capital deficit, has incurred significant losses and needs to
raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the
Companys ability to continue as a going concern. Managements plans in regard to these matters are also described in
Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this
uncertainty.
**Basis
for Opinion**
These
financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on the Companys
financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board
(United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We
conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company
is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit
we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion
on the effectiveness of the Companys internal control over financial reporting. Accordingly, we express no such opinion.
Our
audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error
or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding
the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.
**Critical
Audit Matters**
Critical
audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be
communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and
(2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.
/s/
CBIZ CPAS P.C.
CBIZ
CPAs P.C.
We
have served as the Companys auditor since 2016 (such date takes into account the acquisition of the attest business of Marcum LLP by CBIZ CPAs P.C. effective
November 1, 2024).
Los
Angeles, CA 
March 25, 2026
| F-1 | |
****
****
**REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**
To
the Stockholders and Board of Directors of
Provectus
Biopharmaceuticals, Inc.
**Opinion
on the Financial Statements**
We have audited, before the effects of the retrospective
adjustments to the disclosures for the adoption of ASU 2023-09, Income Taxes (Topic 740): *Improvements to Income Tax Disclosures*
(ASU 2023-09) as discussed in Notes 2 and 11 to the consolidated financial statements, the accompanying consolidated balance
sheet of Provectus Biopharmaceuticals, Inc. (the Company) as of December 31, 2024, the related consolidated statements
of operations, comprehensive loss, changes in stockholders deficit and cash flows for the year then ended, and the related notes
(collectively referred to as the financial statements). In our opinion the financial statements present fairly, in all
material respects, the financial position of the Company as of December 31, 2024, and the results of its operations and its cash flows
for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
We were not engaged to audit, review, or apply any procedures to the retrospective adjustments to the disclosures for the adoption of
ASU 2023-09 as discussed in Notes 2 and 11 to the financial statements, and accordingly, we do not express an opinion or any other form
of assurance about whether such adjustments are appropriate and have been properly applied. Those retrospective adjustments were audited
by CBIZ CPAs P.C.
**Explanatory
Paragraph Going Concern**
The
accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As more fully described
in Note 2, the Company has a significant working capital deficiency, has incurred significant losses and needs to raise additional funds
to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Companys ability to continue
as a going concern. Managements plans in regard to these matters are also described in Note 2. The financial statements do not
include any adjustments that might result from the outcome of this uncertainty.
**Basis
for Opinion**
These
financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on the Companys
financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board
(United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We
conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company
is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit
we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion
on the effectiveness of the Companys internal control over financial reporting. Accordingly, we express no such opinion.
Our
audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error
or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding
the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.
**Critical
Audit Matters**
Critical
audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be
communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and
(2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.
/s/
Marcum LLP
Marcum
LLP
We
have served as the Companys auditor from 2016 through 2025.
Los
Angeles, CA 
March 27, 2025
****
****
| F-2 | |
****
**PROVECTUS
BIOPHARMACEUTICALS, INC.**
**CONSOLIDATED
BALANCE SHEETS** 
| 
| | 
December 31, | | | 
December 31, | | |
| 
| | 
2025 | | | 
2024 | | |
| 
| | 
| | | 
| | |
| 
Assets | | 
| | | | 
| | | |
| 
Current Assets: | | 
| | | | 
| | | |
| 
Cash | | 
$ | 251,291 | | | 
$ | 307,442 | | |
| 
Restricted cash | | 
| - | | | 
| 182,284 | | |
| 
Prepaid expenses and other current assets | | 
| 316,583 | | | 
| 487,046 | | |
| 
Total Current Assets | | 
| 567,874 | | | 
| 976,772 | | |
| 
Equipment and furnishings, less accumulated depreciation of $120,013 and $118,151, respectively | | 
| 3,000 | | | 
| 4,863 | | |
| 
Operating lease right-of-use asset | | 
| 126,628 | | | 
| 24,624 | | |
| 
Total Assets | | 
$ | 697,502 | | | 
$ | 1,006,259 | | |
| 
Liabilities and Stockholders Deficit | | 
| | | | 
| | | |
| 
Current Liabilities: | | 
| | | | 
| | | |
| 
Accounts payable | | 
$ | 716,220 | | | 
$ | 1,106,551 | | |
| 
Unearned grant revenue | | 
| - | | | 
| 336,108 | | |
| 
Accrued interest | | 
| 23,540 | | | 
| 27,774 | | |
| 
Accrued interest - related parties | | 
| 120,384 | | | 
| 144,913 | | |
| 
Accrued interest | | 
| 120,384 | | | 
| 144,913 | | |
| 
Other accrued expenses | | 
| 3,161,379 | | | 
| 2,175,376 | | |
| 
Notes payable | | 
| 217,772 | | | 
| 206,463 | | |
| 
Convertible notes payable | | 
| 870,000 | | | 
| 853,000 | | |
| 
Convertible notes payable - related parties | | 
| 1,740,000 | | | 
| 2,100,000 | | |
| 
Convertible notes payable | | 
| 1,740,000 | | | 
| 2,100,000 | | |
| 
Operating lease liability, current portion | | 
| 48,083 | | | 
| 25,299 | | |
| 
Total Current Liabilities | | 
| 6,897,378 | | | 
| 6,975,484 | | |
| 
Notes payable, non-current portion | | 
| 23,621 | | | 
| - | | |
| 
Operating lease liability, non-current portion | | 
| 79,221 | | | 
| - | | |
| 
Total Liabilities | | 
| 7,000,220 | | | 
| 6,975,484 | | |
| 
Commitments, contingencies, and litigation (Note 16) | | 
| - | | | 
| - | |
| 
Stockholders Deficit: | | 
| | | | 
| | | |
| 
Preferred stock; par value $0.001 per share; 25,000,000 shares authorized; | | 
| | | | 
| | | |
| 
Series D Convertible Preferred Stock; 957,100 shares designated at December 31, 2025 and 2024; 956,985 shares issued and
outstanding at December 31, 2025 and 2024; aggregate liquidation preference of $1,643,333 and $1,095,556 at December 31, 2025 and
December 31, 2024, respectively | | 
| 957 | | | 
| 957 | | |
| 
Series D-1 Convertible Preferred Stock; 23,042,900 shares designated at December 31, 2025 and December 31, 2024; 14,183,315 and
13,106,223 shares issued and outstanding at December 31, 2025 and December 31, 2024, respectively; aggregate liquidation preference
of $227,778,438 and $150,040,045 at December 31, 2025 and December 31, 2024, respectively | | 
| 14,183 | | | 
| 13,106 | | |
| 
Preferred Stock, value | | 
| 14,183 | | | 
| 13,106 | | |
| 
Common stock; par value $0.001 per share; 1,000,000,000 shares authorized; 420,279,879 shares issued and outstanding at December
31, 2025 and 2024 | | 
| 420,280 | | | 
| 420,280 | | |
| 
Additional paid-in capital | | 
| 256,179,846 | | | 
| 251,090,027 | | |
| 
Accumulated other comprehensive loss | | 
| (60,191 | ) | | 
| (60,741 | ) | |
| 
Accumulated deficit | | 
| (262,853,812 | ) | | 
| (257,422,961 | ) | |
| 
Total Provectus Biopharmaceuticals, Inc., Stockholders Deficit | | 
| (6,298,737 | ) | | 
| (5,959,332 | ) | |
| 
Non-controlling interest in subsidiary | | 
| (3,981 | ) | | 
| (9,893 | ) | |
| 
Total Stockholders Deficit | | 
| (6,302,718 | ) | | 
| (5,969,225 | ) | |
| 
Total Liabilities and Stockholders Deficit | | 
$ | 697,502 | | | 
$ | 1,006,259 | | |
See
accompanying notes to consolidated financial statements.
| F-3 | |
**PROVECTUS
BIOPHARMACEUTICALS, INC.**
**CONSOLIDATED
STATEMENTS OF OPERATIONS**
| 
| | 
| | | 
| | |
| 
| | 
For the Years Ended | | |
| 
| | 
December 31, | | |
| 
| | 
2025 | | | 
2024 | | |
| 
| | 
| | | 
| | |
| 
Grant Revenue | | 
$ | 336,108 | | | 
$ | 617,140 | | |
| 
Operating Expenses: | | 
| | | | 
| | | |
| 
Research and development | | 
| 1,897,276 | | | 
| 2,050,663 | | |
| 
General and administrative | | 
| 3,733,597 | | | 
| 3,098,861 | | |
| 
Total Operating Expenses | | 
| 5,630,873 | | | 
| 5,149,524 | | |
| 
Total Operating Loss | | 
| (5,294,765 | ) | | 
| (4,532,384 | ) | |
| 
Other Income (Expense): | | 
| | | | 
| | | |
| 
Research and development credit | | 
| - | | | 
| 9,320 | | |
| 
Interest expense | | 
| (210,359 | ) | | 
| (239,073 | ) | |
| 
Total Other Income (Expense), Net | | 
| (210,359 | ) | | 
| (229,753 | ) | |
| 
Net Loss | | 
| (5,505,124 | ) | | 
| (4,762,137 | ) | |
| 
Net Loss attributable to noncontrolling interest | | 
| (74,273 | ) | | 
| (29,585 | ) | |
| 
Net Loss attributable to common stockholders | | 
$ | (5,430,851 | ) | | 
$ | (4,732,552 | ) | |
| 
| | 
| | | | 
| | | |
| 
Basic and Diluted Loss Per Common Share | | 
$ | (0.01 | ) | | 
$ | (0.01 | ) | |
| 
| 
| | | | 
| | | |
| 
Weighted Average Number of Common Shares Outstanding - Basic and Diluted | | 
| 420,279,879 | | | 
| 419,810,059 | | |
See
accompanying notes to consolidated financial statements.
| F-4 | |
****
**PROVECTUS
BIOPHARMACEUTICALS, INC.**
**CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS**
| 
| | 
| | | 
| | |
| 
| | 
For the Years Ended | | |
| 
| | 
December 31, | | |
| 
| | 
2025 | | | 
2024 | | |
| 
| | 
| | | 
| | |
| 
Net Loss | | 
$ | (5,505,124 | ) | | 
$ | (4,762,137 | ) | |
| 
Other Comprehensive Loss (Gain): | | 
| | | | 
| | | |
| 
Foreign currency translation adjustments | | 
| 550 | | | 
| (576 | ) | |
| 
Comprehensive Loss, net | | 
| (5,504,574 | ) | | 
| (4,762,713 | ) | |
| 
Comprehensive Loss attributed to non-controlling interest | | 
| (74,273 | ) | | 
| (29,585 | ) | |
| 
Comprehensive Loss attributed to controlling interest | | 
$ | (5,430,301 | ) | | 
$ | (4,733,128 | ) | |
See
accompanying notes to consolidated financial statements.
| F-5 | |
****
**PROVECTUS
BIOPHARMACEUTICALS, INC.**
**CONSOLIDATED
STATEMENTS OF CHANGES IN STOCKHOLDERS DEFICIT**
**FOR
THE YEARS ENDED DECEMBER 31, 2025 AND 2024**
| 
| | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | |
| 
| | 
| | 
| | | 
| | | 
| | | 
| | | 
Accumulated | | | 
| | | 
| | | 
| | |
| 
| | 
Preferred Stock | | 
Preferred Stock | | | 
| | | 
| | | 
Additional | | | 
Other | | | 
| | | 
Non- | | | 
| | |
| 
| | 
Series D | | | 
Series D-1 | | | 
Common Stock | | | 
Paid-In | | | 
Comprehensive | | | 
Accumulated | | | 
controlling | | | 
| | |
| 
| | 
Shares | | | 
Amount | | | 
Shares | | | 
Amount | | | 
Shares | | | 
Amount | | | 
Capital | | | 
Loss | | | 
Deficit | | | 
Interest | | | 
Total | | |
| 
Balance at January 1, 2024 | | 
| 12,373,247 | | | 
$ | 12,373 | | | 
| 10,361,097 | | | 
$ | 10,361 | | | 
| 419,522,119 | | | 
$ | 419,522 | | | 
$ | 244,714,967 | | | 
$ | (60,165 | ) | | 
$ | (252,690,409 | ) | | 
$ | - | | | 
$ | (7,593,351 | ) | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Forfeited shares of Series D Preferred Stock | | 
| (11,416,262 | ) | | 
| (11,416 | ) | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| 11,416 | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | |
| 
Issuance of Series D-1 Preferred Stock for forfeited shares of Series D Preferred Stock | | 
| - | | | 
| - | | | 
| 1,141,626 | | | 
| 1,141 | | | 
| - | | | 
| - | | | 
| (1,141 | ) | | 
| - | | | 
| - | | | 
| - | | | 
| - | | |
| 
Issuance of common stock of majority-owned subsidiary | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| 280,308 | | | 
| - | | | 
| - | | | 
| 19,692 | | | 
| 300,000 | | |
| 
Stock-based compensation: | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Amortization of stock options | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| 1,280,776 | | | 
| - | | | 
| - | | | 
| - | | | 
| 1,280,776 | | |
| 
Conversion of accrued directors fees to Series D-1 Preferred Stock | | 
| - | | | 
| - | | | 
| 744,878 | | | 
| 745 | | | 
| - | | | 
| - | | | 
| 2,131,094 | | | 
| - | | | 
| | | | 
| - | | | 
| 2,131,839 | | |
| 
Conversion of 2022 Notes to Series D-1 Preferred Stock | | 
| - | | | 
| - | | | 
| 934,398 | | | 
| 934 | | | 
| - | | | 
| - | | | 
| 2,673,290 | | | 
| - | | | 
| - | | | 
| - | | | 
| 2,674,224 | | |
| 
Conversion of Series D-1 Preferred Stockto Common Stock | | 
| - | | | 
| - | | | 
| (75,776 | ) | | 
| (75 | ) | | 
| 757,760 | | | 
| 758 | | | 
| (683 | ) | | 
| - | | | 
| - | | | 
| - | | | 
| - | | |
| 
Comprehensive loss: | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Net Loss | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| (4,732,552 | ) | | 
| (29,585 | ) | | 
| (4,762,137 | ) | |
| 
Other Comprehensive Loss | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| (576 | ) | | 
| - | | | 
| - | | | 
| (576 | ) | |
| 
Balance at December 31, 2024 | | 
| 956,985 | | | 
$ | 957 | | | 
| 13,106,223 | | | 
$ | 13,106 | | | 
| 420,279,879 | | | 
$ | 420,280 | | | 
$ | 251,090,027 | | | 
$ | (60,741 | ) | | 
$ | (257,422,961 | ) | | 
$ | (9,893 | ) | | 
$ | (5,969,225 | ) | |
| 
Issuance of common stock ofmajority-owned subsidiary | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| 769,815 | | | 
| - | | | 
| - | | | 
| 80,185 | | | 
| 850,000 | | |
| 
Conversion of 2022 Notes to Series D-1 Preferred Stock | | 
| - | | | 
| - | | | 
| 618,340 | | | 
| 618 | | | 
| - | | | 
| - | | | 
| 1,769,985 | | | 
| - | | | 
| - | | | 
| - | | | 
| 1,770,603 | | |
| 
Conversion of 2024 Notes to Series D-1 Preferred Stock | | 
| - | | | 
| - | | | 
| 458,752 | | | 
| 459 | | | 
| - | | | 
| - | | | 
| 1,312,473 | | | 
| - | | | 
| - | | | 
| - | | | 
| 1,312,932 | | |
| 
Stock-based compensation: | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Amortization of stock options | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| 1,237,546 | | | 
| - | | | 
| - | | | 
| - | | | 
| 1,237,546 | | |
| 
Comprehensive loss: | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Net loss | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| (5,430,851 | ) | | 
| (74,273 | ) | | 
| (5,505,124 | ) | |
| 
Other comprehensive income | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| 550 | | | 
| - | | | 
| - | | | 
| 550 | | |
| 
Balance at December 31, 2025 | | 
| 956,985 | | | 
$ | 957 | | | 
| 14,183,315 | | | 
$ | 14,183 | | | 
| 420,279,879 | | | 
$ | 420,280 | | | 
$ | 256,179,846 | | | 
$ | (60,191 | ) | | 
$ | (262,853,812 | ) | | 
$ | (3,981 | ) | | 
$ | (6,302,718 | ) | |
See
accompanying notes to consolidated financial statements.
| F-6 | |
**PROVECTUS
BIOPHARMACEUTICALS, INC.**
**CONSOLIDATED
STATEMENTS OF CASH FLOWS**
****
| 
| | 
| | | 
| | |
| 
| | 
For the Year Ended | | |
| 
| | 
December 31, | | |
| 
| | 
2025 | | | 
2024 | | |
| 
Cash Flows From Operating Activities: | | 
| | | | 
| | | |
| 
Net loss | | 
$ | (5,505,124 | ) | | 
$ | (4,762,137 | ) | |
| 
Adjustments to reconcile net loss to net cash used in operating activities: | | 
| | | | 
| | | |
| 
Stock-based compensation | | 
| 1,237,546 | | | 
| 1,280,776 | | |
| 
Non-cash operating lease expense | | 
| 48,128 | | | 
| 47,402 | | |
| 
Depreciation | | 
| 1,863 | | | 
| 7,157 | | |
| 
Changes in operating assets and liabilities | | 
| | | | 
| | | |
| 
Short term receivables | | 
| - | | | 
| 476 | | |
| 
Prepaid expenses and other current assets | | 
| 478,387 | | | 
| 84,247 | | |
| 
Accounts payable | | 
| (390,331 | ) | | 
| (569,157 | ) | |
| 
Unearned grant revenue | | 
| (336,108 | ) | | 
| (617,140 | ) | |
| 
Accrued interest | | 
| 201,772 | | | 
| 225,481 | | |
| 
Other accrued expenses | | 
| 986,003 | | | 
| 1,066,881 | | |
| 
Operating lease liability | | 
| (48,127 | ) | | 
| (48,077 | ) | |
| 
Net
Cash Used In Operating Activities | | 
| (3,325,991 | ) | | 
| (3,284,091 | ) | |
| 
| | 
| | | | 
| | | |
| 
Cash Flows From Financing Activities: | | 
| | | | 
| | | |
| 
Proceeds from issuance of convertible notes payable | | 
| 870,000 | | | 
| 853,000 | | |
| 
Proceeds from issuance of convertible notes payable - related parties | | 
| 1,640,000 | | | 
| 2,000,000 | | |
| 
Proceeds from issuance of common stock of majority-owned subsidiary | | 
| 850,000 | | | 
| 300,000 | | |
| 
Repayment of short-term note payable | | 
| (272,994 | ) | | 
| (305,135 | ) | |
| 
Repayment of 2021 convertible note payable - related party | | 
| - | | | 
| (100,000 | ) | |
| 
Net
Cash Provided By Financing Activities | | 
| 3,087,006 | | | 
| 2,747,865 | | |
| 
| | 
| | | | 
| | | |
| 
Effect of exchange rates on cash and restricted cash | | 
| 550 | | | 
| (847 | ) | |
| 
| | 
| | | | 
| | | |
| 
Net Decrease In Cash and
Restricted Cash | | 
| (238,435 | ) | | 
| (537,073 | ) | |
| 
Cash
and Restricted Cash, Beginning of Period | | 
| 489,726 | | | 
| 1,026,799 | | |
| 
Cash
and Restricted Cash, End of Period | | 
$ | 251,291 | | | 
$ | 489,726 | | |
| 
| | 
| | | | 
| | | |
| 
Cash and restricted cash consisted of the following: | | 
| | | | 
| | | |
| 
Cash | | 
$ | 251,291 | | | 
$ | 307,442 | | |
| 
Restricted cash | | 
| - | | | 
| 182,284 | | |
| 
Cash
and Restricted Cash, End of Period | | 
$ | 251,291 | | | 
$ | 489,726 | | |
| 
| | 
| | | | 
| | | |
| 
Supplemental Disclosures of Cash Flow Information: | | 
| | | | 
| | | |
| 
Cash paid during the period for: | | 
| | | | 
| | | |
| 
Interest | | 
$ | 4,305 | | | 
$ | 5,439 | | |
| 
Income taxes | | 
$ | - | | | 
$ | - | | |
| 
| | 
| | | | 
| | | |
| 
Non-cash investing and
financing activities: | | 
| | | | 
| | | |
| 
Conversion of 2022 Notes and related accrued interest to
Series D-1 Preferred Stock | | 
$ | 1,770,603 | | | 
$ | 2,674,224 | | |
| 
Conversion of 2024 Notes and related accrued interest to
Series D-1 Preferred Stock | | 
$ | 1,312,932 | | | 
$ | - | | |
| 
ROU asset in exchange for lease liability | | 
$ | 149,642 | | | 
$ | - | | |
| 
Purchase of insurance policies financed by short-term note payable | | 
$ | (203,638 | ) | | 
$ | (233,783 | ) | |
| 
Purchase of software financed by short-term note payable | | 
$ | 104,286 | | | 
$ | - | | |
| 
Conversion of accrued directors fees to Series D-1 Preferred Stock | | 
$ | - | | | 
$ | 2,131,389 | | |
| 
Conversion of Series D-1 Preferred Stock to common stock | | 
$ | - | | | 
$ | 683 | | |
| 
Forfeited shares of Series D Preferred Stock | | 
$ | - | | | 
$ | (11,416 | ) | |
| 
Issuance of Series D-1 Preferred Stock for forfeited shares
of Series D Preferred Stock | | 
$ | - | | | 
$ | 1,141 | | |
| 
Issuance of common stock of majority-owned subsidiary | | 
$ | - | | | 
$ | 95,000 | | |
See
accompanying notes to consolidated financial statements.
| F-7 | |
**PROVECTUS
BIOPHARMACEUTICALS, INC.**
**NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS**
1.
Business Organization and Nature of Operations
Provectus
Biopharmaceuticals, Inc., a Delaware corporation (together with its subsidiaries, Provectus or the Company),
is a clinical-stage biotechnology company developing immunotherapy medicines for different diseases based on a class of bioactive synthetic
small molecule halogenated xanthenes (HXs). Our lead HX molecule is named rose bengal sodium (RBS).
The
Companys proprietary, patented, pharmaceutical-grade RBS is the active pharmaceutical ingredient (API) in the drug
candidates of our current clinical development programs and the formulations of our current non-clinical *in vivo* proof-of-concept
and *in vitro* early discovery programs. Importantly, our pharmaceutical-grade RBS displays different therapeutic effects at different
concentrations and can be formulated for delivery by different routes of administration.
The
Company believes that RBS targets disease in a bifunctional multi-modal manner. Direct contact by RBS with disease may lead to cell death
or repair, depending on the disease being treated and the concentration of RBS being utilized in the therapeutic formulation, by one
or more targeting mechanisms. Multivariate innate and adaptive immune activation, signaling, and response may follow that may manifest
as stimulatory, inhibitory, or both.
The
Company believes that it is the first entity to advance an RBS formulation into clinical trials for the treatment of a disease, such
as those trials reported on the clinical trials registry at ClinicalTrials.gov. The Company believes that it is the first and only entity
to date to make pharmaceutical-grade RBS successfully, reproducibly, and consistently at a purity of nearly 100%.
The
Companys small molecule platform comprises several different drug candidates and non-clinical targets using different concentrations
delivered by different routes of administration specific to each disease area and/or disease indication, including:
| 
| 
| 
Clinical
development programs in oncology (intratumoral administration), dermatology (topical), and ophthalmology (topical), | |
| 
| 
| 
| |
| 
| 
| 
In
vivo: Proof-of-concept programs in oncology (oral), hematology (oral), wound healing (topical), and canine cancers (intratumoral),
and | |
| 
| 
| 
| |
| 
| 
| 
In
vitro: Early discovery programs in infectious diseases and tissue regeneration and repair. | |
*Risks
and Uncertainties*
The
Companys activities are subject to significant risks and uncertainties, including failing to successfully develop and license
or commercialize the Companys prescription drug candidates.
2.
Liquidity and Going Concern
To
date, the Company has not generated any revenues or profits from planned principal operations.
The
Companys cash balance was $251,291 at December 31, 2025. There was no restricted cash associated with the grant received from
the State of Tennessee at December 31, 2025 due to the completion of the grant award program during 2025. The Companys working
capital deficit was $6,329,503 and $5,998,712 as of December 31, 2025 and 2024, respectively. Net loss for the years ended December
31, 2025 and 2024 were $5,505,124 and $4,762,137, respectively, and cash used in operations was $3,325,991 and $3,284,091 for the years
ended December 31, 2025 and 2024, respectively. Since the Companys inception, there has been a history of recurring net losses
from operations, recurring use of cash in operating activities and working capital deficits.
| F-8 | |
Future
cash requirements for our current liabilities include approximately $3.9 million
for accounts payable and accrued expenses, approximately $0.2 million
for notes payable and approximately $48,000 for
future payments under operating leases. Also, a related party convertible note payable in the amount of $100,000
plus approximately $59,444
of related interest is past due, and additional convertible debt in the amount of $2,510,000
plus $107,824
of accrued interest will mature 1 one
year from the date of the notes if not converted prior to maturity,
The Company continues to incur significant
operating losses. Further, Management expects that significant on-going operating expenditures will be necessary to successfully
implement the Companys business plan and develop and market its products.
These
circumstances raise substantial doubt about the Companys ability to continue as a going concern within one year after the date
that these consolidated financial statements are issued.
The
Company plans to access capital resources through possible public or private equity offerings, including additional convertible debt
issuance pursuant to the 2025 Financing (see Note 5) exchange offers, debt financings, corporate collaborations, or other means. In addition,
the Company continues to explore opportunities to strategically monetize its lead drug candidates, PV-10 and PH-10, through potential
co-development and licensing transactions, although there can be no assurance that the Company will be successful with such plans. The
Company has historically been able to raise capital through equity offerings, although there can be no assurance that it will continue
to be successful in the future. If the Company is unable to raise sufficient capital, it will not be able to pay its obligations as they
become due.
These
factors raise substantial doubt about the Companys ability to continue as a going concern. Managements plans to mitigate
the factors which raise substantial doubt include (1) raising funds from the proceeds of private placement transactions, the exercise
of outstanding stock options, or public offerings of debt or equity securities, and (2) monetizing the Companys lead drug candidates.
While the Company believes that it has a reasonable basis for its expectation that it will be able to raise additional funds, the Company
cannot provide assurance that such financing will be available when needed or on acceptable terms, or that it will be able to complete
additional financing in a timely manner. In addition, any such financing may result in significant dilution to stockholders.
Under
ASC Subtopic 205-40, Presentation of Financial StatementsGoing Concern (ASC 205-40), the Company has the responsibility
to evaluate whether conditions and/or events raise substantial doubt about its ability to meet future financial obligations as they become
due within one year after the date that these consolidated financial statements are issued. The accompanying consolidated financial statements
have been prepared on the basis that we will continue as a going concern, which contemplates realization of assets and the satisfaction
of liabilities in the normal course of business. The consolidated financial statements do not include any adjustment that might become
necessary should the Company be unable to continue as a going concern.
3.
Significant Accounting Policies
Basis
of Presentation
The
consolidated financial statements include the consolidated results of Provectus, its wholly owned subsidiaries, and its majority-owned subsidiary, VisiRose (see Note 15). The interests of
non-controlling shareholders in VisiRose are presented as net loss attributable to noncontrolling interest in the Consolidated Statements
of Operations and as noncontrolling interest in subsidiary in the Consolidated Balance Sheets. Intercompany balances and transactions
have been eliminated in consolidation.
Use
of Estimates
The
preparation of financial statements in conformity with accounting principles generally accepted in the United States (GAAP)
requires management to make estimates, judgments 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 revenues and expenses during
the reporting period. The Companys significant estimates and assumptions include the recoverability and useful lives of long-lived
assets, stock-based compensation, accrued liabilities, and the valuation allowance related to the Companys deferred tax assets.
| F-9 | |
Restricted
Cash
Restricted
cash of $182,284 as of December 31, 2024 consists of a grant award received from the State of Tennessee. There was no restricted cash
available as of December 31, 2025 due to the completion of the grant award program during 2025. See Note 14, Grants.
Cash
Concentrations
Cash
and restricted cash are maintained at financial institutions and, at times, balances may exceed federally insured limits of $250,000,
although the Company seeks to minimize this through treasury management. The Company has never experienced any losses related to these
balances although no assurance can be provided that it will not experience any losses in the future. As of December 31, 2025 and 2024,
the Company had cash and restricted cash balances in excess of FDIC insurance limits of $1,291 and $239,726, respectively.
Equipment
and Furnishings, net
Equipment
and furnishings are stated at cost less accumulated depreciation. Depreciation of equipment and furnishings is provided for using
the straight-line method over the estimated useful lives of the assets. Computers and office equipment are being depreciated over five
years; furniture and fixtures are being depreciated over ten
years. Leasehold improvements are amortized over the lesser of (a) the useful life of the asset; or (b) the remaining lease
term. Maintenance and repairs are charged to operations as incurred. The Company capitalizes costs attributable to the betterment of
property and equipment when such betterment extends the useful life of the assets.
Long-Lived
Assets
The
Company reviews the carrying values of its long-lived assets for possible impairment whenever an event or change in circumstances indicates
that the carrying amount of the assets may not be recoverable. Any long-lived assets held for disposal are reported at the lower of their
carrying amounts or fair value less cost to sell. Management has determined there to be no impairment of its long-lived assets during
the years ended December 31, 2025 and 2024.
Grant
Revenue
Grant
revenue is recognized when qualifying costs are incurred and there is reasonable assurance that the conditions of the grant have been
met. Cash received from grants in advance of incurring qualifying costs is recorded as restricted cash and unearned grant revenue. Grant revenue is recognized
when qualifying costs are incurred.
Research
and Development
Research and development costs are expensed as incurred.
Certain shared operating costs, including insurance and facility-related expenses such as rent and utilities, are allocated to research
and development based on managements estimate of the portion of those costs attributable to research and development activities,
which is currently approximately two-thirds of such costs.
Research and development expenses consist primarily
of payroll and related costs, including stock-based compensation, consulting and contract labor, laboratory supplies and pharmaceutical
preparations, insurance, rent and utilities, and depreciation and amortization.
| F-10 | |
Patent
Costs
The
Company expenses all costs as incurred in connection with patent applications (including direct application fees, and the legal and consulting
expenses related to making such applications) and such costs are included in general and administrative expenses in the accompanying
consolidated statements of operations.
Leases
The
Company leases properties under operating leases. The Company recognizes a liability to make lease payments, the lease liability,
and an asset representing the right to use the underlying asset during the lease term, the right-of-use asset upon the
commencement of a lease. The lease liability is measured at the present value of the remaining lease payments, discounted at the Companys
incremental borrowing rate. The right-of-use asset is measured at the amount of the lease liability adjusted for the remaining balance
of any lease incentives received, any cumulative prepaid or accrued rent if the lease payments are uneven throughout the lease term,
any unamortized initial direct costs, and any impairment of the right-of-use-asset. Operating lease expense consists of a single lease
cost calculated so that the remaining cost of the lease is allocated over the remaining lease term on a straight-line basis, variable
lease payments not included in the lease liability, and any impairment of the right-of-use asset.
Income
Taxes
The
Company accounts for income taxes under the liability method in accordance with Accounting Standards Codification (ASC)
740 *Income Taxes*. Under this method, deferred income tax assets and liabilities are determined based on differences
between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be
in effect when the differences are expected to reverse. A valuation allowance is established if it is more likely than not that all,
or some portion, of deferred income tax assets will not be realized. The Company has recorded a full valuation allowance to reduce its
net deferred income tax assets to zero. In the event the Company were to determine that it would be able to realize some or all its deferred
income tax assets in the future, an adjustment to the deferred income tax asset would increase income in the period such determination
was made.
The
Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained upon an examination.
Any recognized income tax positions would be measured at the largest amount that is greater than 50% likely of being realized. Changes
in recognition or measurement would be reflected in the period in which the change in judgment occurs. The Company would recognize any
corresponding interest and penalties associated with its income tax positions in income tax expense. There were no income taxes, interest
or penalties incurred in 2025 or 2024.
Convertible
Instruments
The
Company evaluates its convertible instruments to determine if those contracts or embedded components of those contracts qualify as derivative
financial instruments to be separately accounted for in accordance with ASC Topic 815: *Derivatives and Hedging*. The accounting
treatment of derivative financial instruments requires that the Company record qualifying embedded conversion options and any related
freestanding instruments at their fair values as of the inception date of the agreement and at fair value as of each subsequent balance
sheet date. Any change in fair value is recorded as non-operating, non-cash income, or expense for each reporting period at each balance
sheet date. The Company reassesses the classification of its derivative instruments at each balance sheet date. If the classification
changes as a result of events during the period, the contract is reclassified as of the date of the event that caused the reclassification.
Embedded conversion options classified as derivative liabilities and any related equity classified freestanding instruments are recorded
as a discount to the host instrument.
Preferred
Stock
The
Company applies the accounting standards for distinguishing liabilities from equity when determining the classification and measurement
of its preferred stock. Preferred shares subject to mandatory redemption are classified as liability instruments and are measured at
fair value. Conditionally redeemable preferred shares (including preferred shares that feature redemption rights that are either within
the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Companys control)
are classified as temporary equity. At all other times, preferred shares are classified as equity.
| F-11 | |
Basic
and Diluted Loss Per Common Share
Basic
loss per common share is computed by dividing net loss by the weighted average number of vested common shares outstanding during the
period. Diluted earnings per share reflects the potential dilution that could occur if securities or other instruments to issue common
stock were exercised or converted into common stock. The following securities are excluded from the calculation of weighted average dilutive
common shares because their inclusion would have been anti-dilutive:
Schedule of Securities Excluded from Calculation of Weighted Average Dilutive Common Shares
| 
| | 
| | | 
| | |
| 
| | 
December 31, | | |
| 
| | 
2025 | | | 
2024 | | |
| 
Options | | 
| 50,683,344 | | | 
| 20,881,145 | | |
| 
Convertible preferred stock | | 
| 142,790,135 | | | 
| 132,019,215 | | |
| 
2021 unsecured convertible notes and accrued interest | | 
| 557,109 | | | 
| 529,156 | | |
| 
2022 unsecured convertible notes and accrued interest | | 
| - | | | 
| 6,058,054 | | |
| 
2024 unsecured convertible notes and accrued interest | | 
| - | | | 
| 4,334,130 | | |
| 
2025 unsecured convertible notes and accrued interest | | 
| 9,065,270 | | | 
| - | | |
| 
Total potentially dilutive shares | | 
| 203,095,858 | | | 
| 163,821,700 | | |
Fair
Value of Financial Instruments
The
Company measures the fair value of financial assets and liabilities based on the guidance of ASC 820 *Fair Value Measurements
and Disclosures* (ASC 820) which defines fair value, establishes a framework for measuring fair value, and expands
disclosures about fair value measurements. The Company determines the estimated fair value of amounts presented in these consolidated
financial statements using available market information and appropriate methodologies. However, considerable judgment is required in
interpreting market data to develop the estimates of fair value. The estimates presented in the consolidated financial statements are
not necessarily indicative of the amounts that could be realized in a current exchange between buyer and seller. The use of different
market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. These fair value estimates
were based upon pertinent information available as of December 31, 2025 and 2024. The carrying amounts of the Companys financial
assets and liabilities, such as cash, restricted cash, other current assets, accounts payable, unearned grant income, and
accrued expenses approximate fair value due to the short-term nature of these instruments.
The
carrying amounts of our credit obligations approximate fair value because the effective yields on these obligations, which include contractual
interest rates, are comparable to rates of returns for instruments of similar credit risk.
ASC
820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the
principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement
date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize
the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value:
| 
Level
1 | 
| 
Inputs
use quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. | |
| 
| 
| 
| |
| 
Level
2 | 
| 
Inputs
use directly or indirectly observable inputs. These inputs include quoted prices for similar assets and liabilities in active markets
as well as other inputs such as interest rates and yield curves that are observable at commonly quoted intervals. | |
| 
| 
| 
| |
| 
Level
3 | 
| 
Inputs
are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the
related asset or liability. | |
In
instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements
in their entirety are categorized based on the lowest level input that is significant to the valuation. The Companys assessment
of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset
or liability.
| F-12 | |
Both
observable and unobservable inputs may be used to determine the fair value of positions that are classified within the Level 3 category.
As a result, the unrealized gains and losses for assets within the Level 3 category may include changes in fair value that were attributable
to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in historical company data) inputs. Financial
assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies, or similar
techniques and at least one significant model assumption or input is unobservable.
Foreign
Currency Translation
The
Companys reporting currency is the United States Dollar. The functional currencies of the Companys operating subsidiaries
are their local currencies (United States Dollar and Australian Dollar). Australian Dollar denominated assets and liabilities of $11,787
and $1,650 at December 31, 2025 and $7,295 and $1,020 at December 31, 2024, respectively are translated into the United States Dollar
at the balance sheet date, and net expense accounts of ($11) and ($1,745) for the years ended December 31, 2025 and 2024, respectively
are translated at a weighted average exchange rate for the years then ended. Equity is translated at historical rates and the resulting
foreign currency translation adjustments are included as a component of accumulated other comprehensive loss (AOCL), which
is a separate component of stockholders deficit. Therefore, the U.S. dollar value of the non-equity translated items in the Companys
consolidated financial statements will fluctuate from period to period as the result of the changing value of the U.S. dollar versus the Australian Dollar.
The
Company engages in foreign currency denominated transactions with its Australian subsidiary. At the date that the transaction is recognized,
each asset, liability, revenue, expense, gain, or loss arising from the transaction is measured and recorded in the functional currency
of the recording entity using the exchange rate in effect at that date. At each balance sheet date, recorded monetary balances denominated
in a currency other than the functional currency are adjusted using the exchange rate at the balance sheet date, with gains or losses
recorded in other income or other expense.
Stock-Based
Compensation
The
Company measures the cost of services received in exchange for an award of equity instruments based on the fair value of the award. The
fair value of the award is measured on the grant date and then is recognized over the period during which services are required to be
provided in exchange for the award, usually the vesting period. The Company computes the fair value of equity-classified options granted
using the Black-Scholes option pricing model. Option valuation models require the input of highly subjective assumptions including the
expected volatility factor of the market price of the Companys common stock which is determined by reviewing its historical public
market closing prices.
Segment
The
Company has one operating and reporting segment (clinical stage biotechnology), namely, the development of immunotherapy medicines. The
accounting policies of the segment are the same as those described in the summary of significant accounting policies. The chief operating
decision maker (CODM), who is the Companys chief executive officer, utilizes the Companys financial information
on an aggregate, consolidated basis for purposes of making operating decisions, allocating resources, and assessing financial performance,
as well as for making strategic operations decisions and managing the organization. The CODM is not regularly provided with disaggregated
expense information, other than the expense information included in the consolidated statements of operations and comprehensive loss.
The measure of segment assets is reported on the balance sheet as total assets.
Reclassifications
A portion of the prior period stock-based compensation expense, which was
previously reported in general and administrative expenses, has been reclassified to research and development expense in order to conform
to the current period presentation. This reclassification has no effect on previously reported results of operations or loss per share.
Recently
Issued Accounting Pronouncements
In
November 2024, the FASB issued ASU 2024-03, *Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures*.
ASU 2024-03 is intended to improve disclosures about a public business entitys expenses and provide more detailed information
to investors about the types of expenses in commonly presented expense captions. The amendments in this ASU will be applied retrospectively
and are effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December
15, 2027, with early adoption permitted. The Company is currently evaluating the impact of implementing this guidance.
In
December 2025, the FASB issued ASU 2025-10, *Government Grants (Topic 832) Accounting for Government Grants Received by Business
Entities*. This ASU establishes authoritative guidance on the accounting for government grants received by business entities, which
previously did not exist. In the absence of specific guidance, many business entities analogized to the guidance in International Accounting
Standard (IAS) 20, Accounting for Government Grants and Disclosure of Government Assistance, or Subtopic 958-605, Not-for-Profit EntitiesRevenue
Recognition. The ASU defines two types of government grants: (1) a grant related to an asset (for which there are two approaches to record
the grant proceeds) and (2) a grant related to income. A grant related to an asset is conditioned on the purchase, construction, or acquisition
of an asset (for example, a long-lived asset or inventory). A grant related to income is other than a grant related to an asset (for
example, a grant that reimburses a business entity for operating expenses). The ASU defines the criteria that need to be met in order
to recognize government grant proceeds and prescribes that a business entity present a grant related to income and a grant related to
an asset for which the deferred income approach is elected as part of earnings either (1) separately under a general heading such as
other income or (2) deducted from the related expense. The ASU is effective for fiscal years beginning after December 15, 2028, and interim
periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of implementing this
guidance.
| F-13 | |
Recently
Adopted Accounting Pronouncements
In
December 2023, the FASB issued ASU 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures*. The amendments
in this update address investor requests for more transparency about income tax information through improvements to income tax
disclosures primarily related to the rate reconciliation and income taxes paid information. This update also includes certain other
amendments to improve the effectiveness of income tax disclosures. The amendments in ASU 2023-09 are effective for the Company for
annual periods beginning after December 15, 2024, with early adoption permitted. The Company adopted the amendments of ASU 2023-09
effective January 1, 2025, and has included the required disclosures in this Annual Report on Form 10-K for the year ended December
31, 2025. The adoption of ASU 2023-09 enhances the transparency of income tax disclosures primarily related to the rate
reconciliation and income taxes paid information. The retrospective adoption of ASU 2023-09 did not have a material impact on the
Companys consolidated financial condition, results of operations or cash flows since the guidance pertains to disclosure
only.
4.
Other Accrued Expenses
The
following table summarizes the other accrued expenses at December 31, 2025 and 2024:
Schedule
of Other Accrued Expenses
| 
| | 
| | | 
| | |
| 
| | 
For the Years Ended December 31, | | |
| 
| | 
2025 | | | 
2024 | | |
| 
Accrued payroll and taxes | | 
$ | 2,349,284 | | | 
$ | 1,501,449 | | |
| 
Accrued vacation | | 
| 189,153 | | | 
| 131,099 | | |
| 
Accrued directors fees | | 
| 387,500 | | | 
| 77,500 | | |
| 
Accrued other expenses | | 
| 235,442 | | | 
| 465,328 | | |
| 
Total other accrued expenses | | 
$ | 3,161,379 | | | 
$ | 2,175,376 | | |
| F-14 | |
5.
Convertible Notes Payable
The
following summarizes convertible note activity during the years ended December 31, 2025 and 2024:
Schedule of Convertible Notes Payable
| 
| | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | |
| 
| | 
2021 Financing | | | 
2022 Financing | | | 
2024 Financing | | | 
2025 Financing | | | 
Total | | |
| 
| | 
Non-Related Party | | | 
Related Party | | | 
Non-Related Party | | | 
Related Party | | | 
Non-Related Party | | | 
Related Party | | | 
Non-Related Party | | | 
Related Party | | | 
Non-Related Party | | | 
Related Party | | |
| 
Balance as of January 1, 2024 | | 
$ | - | | | 
$ | 200,000 | | | 
$ | 800,000 | | | 
$ | 1,675,000 | | | 
$ | - | | | 
$ | - | | | 
$ | - | | | 
$ | - | | | 
$ | 800,000 | | | 
$ | 1,875,000 | | |
| 
Notes issued | | 
| - | | | 
| - | | | 
| 353,000 | | | 
| 1,285,000 | | | 
| 500,000 | | | 
| 715,000 | | | 
| - | | | 
| - | | | 
| 853,000 | | | 
| 2,000,000 | | |
| 
Principal converted | | 
| - | | | 
| (100,000 | ) | | 
| (800,000 | ) | | 
| (1,675,000 | ) | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| (800,000 | ) | | 
| (1,775,000 | ) | |
| 
Balance as of January 1, 2025 | | 
- | | | 
| 100,000 | | | 
353,000 | | | 
1,285,000 | | | 
500,000 | | | 
715,000 | | | 
- | | | 
- | | | 
853,000 | | | 
2,100,000 | | |
| 
Balance | | 
- | | | 
| 100,000 | | | 
353,000 | | | 
1,285,000 | | | 
500,000 | | | 
715,000 | | | 
- | | | 
- | | | 
853,000 | | | 
2,100,000 | | |
| 
Notes issued | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| 870,000 | | | 
| 1,640,000 | | | 
| 870,000 | | | 
| 1,640,000 | | |
| 
Principal converted | | 
| - | | | 
| - | | | 
| (353,000 | ) | | 
| (1,285,000 | ) | | 
| (500,000 | ) | | 
| (715,000 | ) | | 
| - | | | 
| - | | | 
| (853,000 | ) | | 
| (2,000,000 | ) | |
| 
Balance as of December 31, 2025 | | 
$ | - | | | 
$ | 100,000 | | | 
$ | - | | | 
$ | - | | | 
$ | - | | | 
$ | - | | | 
$ | 870,000 | | | 
$ | 1,640,000 | | | 
$ | 870,000 | | | 
$ | 1,740,000 | | |
| 
Balance | | 
$ | - | | | 
$ | 100,000 | | | 
$ | - | | | 
$ | - | | | 
$ | - | | | 
$ | - | | | 
$ | 870,000 | | | 
$ | 1,640,000 | | | 
$ | 870,000 | | | 
$ | 1,740,000 | | |
As
of December 31, 2025 and December 31, 2024, accrued interest on the convertible notes was $143,924
and $172,687,
respectively.
Related
party investors in the Companys convertible notes consist of an officer and an officer/director of the Company.
*2021
Financing*
The
2021 Financing is in the form of unsecured convertible notes (individually, a 2021 Note and collectively, the 2021
Notes). Pursuant to the 2021 Term Sheet, the 2021 Notes will either be paid back, convert into shares of the Companys Series
D-1 Preferred Stock, or convert into Company equity securities and/or debt instruments of certain future financings on or before twelve
months after the issue date of a 2021 Note, subject to certain exceptions.
In
addition to customary provisions, the 2021 Notes contain the following provisions:
| 
| 
(i) | 
The
2021 Notes bear interest at the rate of eight percent (8%) per annum on the outstanding principal amount of the loan that has been
funded to the Company; | |
| 
| 
| 
| |
| 
| 
(ii) | 
In
the event there is a change of control of the Board, the term of the 2021 Notes will be accelerated and all amounts due under the
2021 Notes may be immediately due and payable at the investors option; | |
| 
| 
| 
| |
| 
| 
(iii) | 
The
outstanding principal amount and interest payment under the 2021 Notes may be paid back at maturity at the investors option; | |
| 
| 
| 
| |
| 
| 
(iv) | 
The
outstanding principal amount and interest payable under the 2021 Notes are convertible at the holders option into shares of
Series D-1 Preferred Stock at a price per share equal to $2.862. The Series D-1 Preferred Stock is convertible into ten (10) shares
of common stock; and | |
| 
| 
| 
| |
| 
| 
(v) | 
In
the event the Company conducts a qualified equity or debt financing and the Company receives gross proceeds in the aggregate amount
of $20 million, the 2021 Notes may be converted into the equity securities and/or debt instruments of such financing at the same
terms as those investors. | |
The
embedded conversion options associated with the 2021 Notes do not require bifurcation and treatment as a derivative liability.
On
September 20, 2022, the Board approved the closure of the 2021 Financing.
As
of December 31, 2025, principal and interest in the amount of $100,000 and $59,444, respectively, remains outstanding on the 2021 Note.
During the year ended December 31, 2024, the Company repaid $100,000 of principal owed on the 2021 Note.
For
the years ended December 31, 2025 and 2024, the Company recorded interest expense of $8,000 and $13,400, respectively, related
to the 2021 Notes.
| F-15 | |
*2022
Financing*
Pursuant
to the 2022 Term Sheet, the 2022 Notes (defined below) will convert into shares of the Companys Series D-1 Preferred Stock twelve
months after the issue date of a 2022 Note, subject to certain exceptions.
The
2022 Financing is in the form of unsecured convertible promissory notes (individually, a 2022 Note and collectively, the
2022 Notes). In addition to customary provisions, the 2022 Notes will contain the following provisions:
| 
| 
(i) | 
The
2022 Notes bear interest at the rate of eight percent (8%) per annum on the outstanding principal amount of the Loan that has been
funded to the Company; | |
| 
| 
| 
| |
| 
| 
(ii) | 
In
the event there is a change of control of the Board, the term of the 2022 Notes will be accelerated and all amounts due under the
2022 Notes may be immediately due and payable at the 2022 Note Investors option; | |
| 
| 
| 
| |
| 
| 
(iii) | 
The
outstanding principal amount and interest payable under the 2022 Notes is convertible at the holders option into shares of
Series D-1 Preferred Stock at a price per share equal to $2.862. The Series D-1 Preferred Stock is convertible into ten (10) shares
of common stock; and | |
| 
| 
| 
| |
| 
| 
(iv) | 
The
outstanding principal amount and interest payable under the 2022 Notes will be automatically convertible into shares of the Companys
Series D-1 Preferred Stock twelve (12) months after the issue date of a 2022 Note. | |
The
embedded conversion options associated with the 2022 Notes do not require bifurcation and treatment as a derivative liability.
On
July 11, 2024, the Board approved the closure of the 2022 Financing.
During
the year ended December 31, 2025, principal and interest in the aggregate amount $1,770,603, owed in connection with the 2022 Notes were
converted into 618,340 shares of Series D-1 Preferred Stock at the Conversion Price of $2.862 per share. During the year ended December
31, 2024, principal and interest in the aggregate amount of $2,674,224, owed in connection with the 2022 Notes were converted into 934,398
shares of Series D-1 Preferred Stock at the Conversion Price of $2.862 per share. Any fractional shares issuable pursuant to the formula
were rounded up to the next whole share of Series D-1 Preferred Stock. See Note 9, Stockholders Deficit for additional information
on the Series D-1 Preferred Stock.
As
of December 31, 2025, all outstanding 2022 Notes have been converted to Series D-1 Preferred Stock. For the years ended December 31,
2025 and 2024, the Company recorded interest expense of $36,788 and $186,654, respectively, related to the 2022 Notes.
*2024
Financing*
On
July 11, 2024, the Board approved a Financing Term Sheet (the 2024 Term Sheet), which set forth the terms under which the
Company will use its best efforts to arrange for financing of a maximum of $10,000,000 (the 2024 Financing), which amounts
will be obtained in several tranches. Pursuant to the 2024 Term Sheet, the 2024 Notes (defined below) will convert into shares of the
Companys Series D-1 Preferred Stock twelve months after the issue date of a 2024 Note, subject to certain exceptions.
| F-16 | |
The
2024 Financing is in the form of unsecured convertible promissory notes (individually, a 2024 Note and collectively, the
2024 Notes). In addition to customary provisions, the 2024 Notes contain the following provisions:
| 
| 
(i) | 
The
2024 Notes bear interest at the rate of eight percent (8%) per annum on the outstanding principal amount of the Loan that has been
funded to the Company; | |
| 
| 
| 
| |
| 
| 
(ii) | 
In
the event there is a change of control of the Board, the term of the 2024 Notes will be accelerated and all amounts due under the
2024 Notes may be immediately due and payable at the option of the holder; | |
| 
| 
| 
| |
| 
| 
(iii) | 
The
outstanding principal amount and interest payable under the 2024 Notes is convertible at the holders option into shares of
Series D-1 Preferred Stock at a price per share equal to $2.862. The Series D-1 Preferred Stock is convertible into ten (10) shares
of common stock; and | |
| 
| 
| 
| |
| 
| 
(iv) | 
The
outstanding principal amount and interest payable under the 2024 Notes will be automatically convertible into shares of the Companys
Series D-1 Preferred Stock twelve (12) months after the issue date of a 2024 Note. | |
The
embedded conversion options associated with the 2024 Notes do not require bifurcation and treatment as a derivative liability.
During the year ended December 31, 2025,
principal and interest in the aggregate amount $1,312,932, owed in connection with the 2024 Notes were converted into 458,752 shares
of Series D-1 Preferred Stock at the Conversion Price of $2.862 per share. Any fractional shares issuable pursuant to the formula
were rounded up to the next whole share of Series D-1 Preferred Stock. See Note 9, Stockholders Deficit for additional
information on the Series D-1 Preferred Stock. As of
December 31, 2025, all outstanding 2024 Notes have been converted to Series D-1 Preferred Stock.
For the years ended December 31,
2025 and 2024, the Company recorded interest expense of $72,504 and
$25,428,
respectively, related to the 2024 Notes.
On
January 15, 2025, the Board approved the closure of the 2024 Financing.
*2025
Financing*
On
January 15, 2025, the Board approved a Financing Term Sheet (the 2025 Term Sheet), which set forth the terms under which
the Company will use its best efforts to arrange for financing of a maximum of $10,000,000 (the 2025 Financing), which
amounts will be obtained in several tranches.
Pursuant
to the 2025 Term Sheet, the 2025 Notes (defined below) will convert into shares of the Companys Series D-1 Preferred Stock twelve
months after the issue date of a 2025 Note.
The
2025 Financing will be in the form of unsecured convertible loans from the investors (the 2025 Note Investors) and evidenced
by convertible promissory notes (individually, a 2025 Note and collectively, the 2025 Notes). In addition
to customary provisions, the 2025 Notes will contain the following provisions:
| 
| 
(i) | 
The
2025 Notes bear interest at the rate of eight percent (8%) per annum. | |
| 
| 
| 
| |
| 
| 
(ii) | 
In
the event there is a change of control of the Board, the term of the 2025 Notes will be accelerated and all amounts due under the
2025 Notes may be immediately due and payable at the 2025 Note Investors option; | |
| 
| 
| 
| |
| 
| 
(iii) | 
The
outstanding principal amount and interest payable under the 2025 Notes may be converted early at the 2025 Note Investors option
into shares of Series D-1 Preferred Stock at a price per share equal to $2.862. Each share of Series D-1 Preferred Stock is convertible
into ten (10) shares of common stock; and | |
| 
| 
| 
| |
| 
| 
(iv) | 
The
outstanding principal amount and interest payable under the 2025 Notes will automatically convert into shares of the Companys
Series D-1 Preferred Stock twelve (12) months after the issue date of a 2025 Note. Each share of Series D-1 Preferred Stock is convertible
into ten (10) shares of the Companys Common Stock. | |
As
of December 31, 2025, principal and interest in the amount of $2,510,000 and $84,480, respectively, remains outstanding on the 2025 Notes.
For the year ended December 31, 2025, the Company recorded interest expense of $84,480, related to the 2025 Notes.
| F-17 | |
6.
Notes Payable
The
Company obtained short-term financing from First Insurance Funding in 2025 for our commercial insurance policies and Wells Fargo for
our new NetSuite Software. As of December 31, 2025, the balance of the notes payable was $241,393, of which $217,772 was classified as a current liability and $23,621 was
classified as a non-current liability. As of December 31, 2024, the balance
of the note payable was $206,463. For the years ended December 31, 2025 and 2024, the Company recorded interest expense of $5,338 and
$13,591, respectively, related to the notes payable.
7.
Related Party Transactions
During
the year ended December 31, 2024, the Company incurred consulting fees of $63,600 for services rendered by Bruce Horowitz (Capital Strategists)
a former member of the Board and former Chief Operating Officer (COO). As of March 25, 2024, Mr. Horowitz resigned as COO
and member of the Board. On March 26, 2024, the Company paid Mr. Horowitz $250,000 and on June 27, 2024, the Company paid $258,000 for
outstanding consulting fees.
Director
fees for Mr. Horowitz for the years ended December 31, 2025 and 2024 were $0
and $18,750, respectively. Mr. Horowitz waived the amount of $450,000
due to him in director fees upon his resignation.
On
March 25, 2024, the Board retained Dominic Rodrigues as the Companys interim chief operations consultant pursuant to an Independent
Contractor Agreement entered into with Mr. Rodrigues. In this role, Mr. Rodrigues will serve as the Companys principal executive
officer and will be paid $20,000 per calendar month for his services as principal executive officer. During the year ended December 31,
2024, the Company incurred fees of $13,800 for interim consulting services rendered by Mr. Rodrigues. In April 2024, Mr. Rodrigues was
hired as an employee to serve in the role of president and principal executive officer.
See
Note 5 for details of other related party transactions.
Directors
fees incurred during the year ended December 31, 2025 and 2024, were $310,000
and $328,750,
respectively. In the first quarter of 2024, the Company recognized a net gain of $121,250,
primarily attributable to the $450,000
in fees waived by Mr. Horowitz. 
8.
Prepaid Expenses and Other Current Assets
The
following table summarizes the prepaid expenses and other current assets at December 31, 2025 and 2024:
Schedule
of Prepaid Expenses And Other Current Assets
| 
| | 
| | | 
| | |
| 
| | 
For the Years Ended | | |
| 
| | 
December 31, | | |
| 
| | 
2025 | | | 
2024 | | |
| 
Deferred tax asset | | 
$ | 1,596 | | | 
$ | 1,596 | | |
| 
Prepaid insurance | | 
| 186,111 | | | 
| 209,320 | | |
| 
Prepaid rent | | 
| 8,106 | | | 
| 8,106 | | |
| 
Prepaid subscriptions | | 
| 28,848 | | | 
| 27,418 | | |
| 
Prepaid other | | 
| 20,524 | | | 
| 4,223 | | |
| 
Other current assets | | 
| 71,398 | | | 
| 236,383 | | |
| 
Total Prepaid Expenses and Other Current Assets | | 
$ | 316,583 | | | 
$ | 487,046 | | |
Other
current assets at December 31, 2025 primarily consisted of prepaid software costs related to the implementation of NetSuite. At December
31, 2024, other current assets primarily consisted of a refund receivable from the University of Tennessee College of Veterinary Medicine
following the termination of a contract.
In addition, as of December 31, 2025
and 2024, the Company has a short-term receivable in the amount of $2,100,000 that is owed from Peter Culpepper, the former Interim Chief
Executive Officer of the Company. The Company has established a reserve of $2,100,000 as of December 31, 2025 and 2024, such that the
carrying value of the receivable is $0 as of December 31, 2025 and 2024.
| F-18 | |
9.
Stockholders Deficit
Authorized
Capital
As
of December 31, 2025, the Company was authorized to issue 1,000,000,000 shares of common stock, $0.001 par value, and 25,000,000 shares
of preferred stock, $0.001 par value. The holders of the Companys common stock are entitled to one vote per share. The preferred
stock is designated as follows: 957,100 shares to Series D Convertible Preferred Stock (the Series D Preferred Stock),
and 23,042,900 shares of Series D-1 Convertible Preferred Stock (the Series D-1 Preferred Stock) and 1,000,000 shares undesignated.
Series
D and Series D-1 Preferred Stock
The
rights, preferences and privileges of the Series D Preferred Stock and Series D-1 Preferred Stock (collectively, the D-Series
Preferred Stock) are set forth in their respective Certificates of Designation.
*Rank*
The
Series D Preferred Stock and the Series D-1 Preferred Stock rank *pari passu* with each other. The D-Series Preferred Stock rank
senior to the Common Stock and any other class or series of the Companys capital stock, the terms of which do not provide that
shares of such class rank senior to, or *pari passu* with, the D-Series Preferred as to dividends and distributions upon a change
of control transaction, or the liquidation, winding-up and dissolution of the Company.
*Dividends*
The
D-Series Preferred Stock does not have any dividend preference but are entitled to receive, on a *pari passu* basis, dividends,
if any, that are declared and paid on the common stock and any other class of the Companys capital stock that ranks junior or
on par to the D-Series Preferred Stock.
*Liquidation
Preference*
Upon
the occurrence of the liquidation, winding-up or dissolution of the Company or certain mergers, corporate reorganizations, or sales of
the Companys assets (each, a Company Event), holders of D-Series Preferred Stock will be entitled to receive a liquidation
preference before any distributions are made to holders of any other class or series of the Companys capital stock junior to the
D-Series Preferred Stock. If a Company Event occurs within two years of June 20, 2021 (the Date of Issuance), the holders
of D-Series Preferred Stock will receive, for each share of D-Series Preferred Stock, an amount in cash equal to the Original Issue Price
(as defined in the respective Certificates of Designation) multiplied by four. If a Company Event occurs from and after the second anniversary
of the Date of Issuance, the holders of D-Series Preferred Stock will receive, for each share of D-Series Preferred Stock, an amount
in cash equal to the Original Issue Price multiplied by six. The Original Issue Price for the Series D Preferred Stock is $0.2862, and
the Original Issue Price for the Series D-1 Preferred Stock is $2.862.
*Voting
Rights*
Holders
of shares of D-Series Preferred Stock will vote together with the holders of common stock as a single class. Each share of Series D Preferred
Stock carries the right to one vote per share. Each share of Series D-1 Preferred Stock carries the right to ten votes per share.
The
Company is not permitted to amend, alter or repeal its Certificate of Incorporation or bylaws in a manner adverse to the relative rights,
preferences, qualifications, limitations or restrictions of the D-Series Preferred Stock without the affirmative vote of a majority of
the votes entitled to be cast by holders of outstanding shares of D-Series Preferred Stock, voting together as a single class with each
share of D-Series Convertible Preferred Stock having a number of votes equal to the number of shares of common stock then issuable upon
conversion of such share of D-Series Preferred Stock.
| F-19 | |
*Conversion*
The
Series D Preferred Stock is convertible at the option of the holders thereof into shares of common stock based on a one-for-one conversion
ratio. The Series D-1 Preferred Stock is convertible at the option of the holders thereof into shares of common stock based on a one-for-ten
conversion ratio. The conversion ratio of the D-Series Preferred Stock is subject to adjustment for stock splits and combinations, recapitalizations,
reclassifications, reorganizations, mergers, and consolidations. The D-Series Preferred Stock will automatically convert into shares
of common stock upon the fifth anniversary of the date of issuance. See Note 18 Subsequent Events for information related to the extension of the automatic conversion date.
*Preferred
Stock Issuances*
**
During
the year ended December 31, 2025, convertible notes with principal and accrued interest in the aggregate amount of $3,083,535
were converted into 1,077,092
shares of Series D-1 Preferred Stock.
During
the year ended December 31, 2024, the Company issued 744,878 shares of Series D-1 Preferred Stock in satisfaction of accrued directors
fees in the amount of $2,131,839.
During
the year ended December 31, 2024, the Company issued 1,141,262 shares of Series D-1 Preferred Stock in exchange of 11,416,626 shares
of Series D Preferred Stock.
During
the year ended December 31, 2024, convertible notes with principal and accrued interest in the aggregate amount of $2,674,224
were converted into 934,398
shares of Series D-1 Preferred Stock.
Common
Stock Issuances
During
the year ended December 31, 2025, the Company did not issue any shares of common stock. During the year ended December 31, 2024, the
Company issued 757,760 shares of common stock upon the conversion of 75,776 shares of Series D-1 Preferred Stock.
10.
Stock Incentive Plan and Warrants
*2024
Equity Compensation Plan*
At
the shareholder meeting held on June 20, 2024, the proposal for the new 2024 Equity Compensation Plan was approved. The approval gives
the Company the authority to grant Options and award Restricted Stock under the 2024 Equity Compensation Plan for up to 100,000,000 shares
of our common stock. As of December 31, 2025, there were 49,196,656 shares available for issuance under the 2024 Equity Compensation
Plan.
The
following table summarizes option activity during the years ended December 31, 2025 and 2024:
Stock
Options
**Schedule
of Option Activity**
| 
| | 
Shares | | | 
Weighted Average
Exercise Price | | | 
Weighted Average Remaining
Life in
Years | | | 
Aggregate Intrinsic
Value | | |
| 
| | 
| | | 
| | | 
| | | 
| | |
| 
Outstanding at January 1, 2025 | | 
| 53,393,102 | | | 
$ | 0.29 | | | 
| 9.3 | | | 
$ | - | | |
| 
Granted | | 
| 365,242 | | | 
| 0.30 | | | 
| | | | 
| | | |
| 
Forfeited | | 
| (3,075,000 | ) | | 
| 0.24 | | | 
| | | | 
| | | |
| 
Options outstanding at December 31, 2025 | | 
| 50,683,344 | | | 
| 0.29 | | | 
| 8.8 | | | 
| - | | |
| 
Options exercisable at December 31, 2025 | | 
| 34,427,368 | | | 
$ | 0.28 | | | 
| 8.8 | | | 
$ | - | | |
| F-20 | |
On
December 2, 2024, the Company granted five and ten-year options for the purchase of 50,318,102 shares of the Companys common stock
exercisable at $0.2862 per share, as follows:
| 
| 
| 
Ten-year
options for the purchase of 1,550,164 shares of the Companys common stock, with an aggregate grant date value of $112,070
were granted to certain directors of the Company. The options were fully vested upon grant. | |
| 
| 
| 
Ten-year
options for the purchase of 47,953,253 shares of the Companys common stock, with an aggregate grant date value of $3,466,802
were granted to certain Company executives. One-third of the options were fully vested upon grant; the remaining two-thirds vested
on each of the next two anniversaries of the date of grant. | |
| 
| 
| 
Five-year
options for the purchase of 814,685 shares of the Companys common stock, with an aggregate grant date value of $39,317 were
granted to an employee of the Company. One-third of the options were fully vested upon grant; the remaining two-thirds vested on
each of the next two anniversaries of the date of grant. | |
The
grant date value of the stock options was calculated using the Black Sholes valuation model with the following assumptions:
Schedule
of Grant Date Value of Stock Option using Black Sholes Valuation Model 
| 
| | 
Options granted during the year ended December 31, | | |
| 
| | 
2025 | | | 
2024 | | |
| 
Risk free interest rate | | 
| 3.84 | % | | 
| | | 
| 3.86 | % | | 
| 4.08 | % | | 
| - | | | 
| 4.19 | % | |
| 
Expected term (years) | | 
| 2.5 | | | 
| - | | | 
| 2.5 | | | 
| 3.0 | | | 
| - | | | 
| 5.5 | | |
| 
Expected volatility | | 
| 90 | % | | 
| - | | | 
| 91 | % | | 
| 94 | % | | 
| - | | | 
| 100 | % | |
| 
Expected dividends | | 
| | 
| 0.00 | % | | 
| | | | 
| | 
| 0.00 | % | | 
| | | |
Option
forfeitures are accounted for at the time of occurrence. The expected term used is the estimated period of time that options granted
are expected to be outstanding. The Company utilizes the simplified method to develop an estimate of the expected term
of employee option grants. The Company utilizes an expected volatility figure based on the historical volatility of its common stock
over a period of time equivalent to the expected term of the instrument being valued. The risk-free interest rate was determined from
the implied yields from U.S. Treasury zero-coupon bonds with a remaining term consistent with the expected term of the instrument being
valued. Forfeitures during the period primarily relate to the options previously held by a former executive officer.
During
the year ended December 31, 2025, the Company recognized stock-based compensation expense of $1,237,546.
During the year ended December 31, 2024, the Company recognized stock-based compensation expense of $1,280,776.
As of December 31, 2025, there was $1,230,608
of unrecognized stock-based compensation related to the above
stock options, which will be recognized over the weighted average remaining vesting period of less than one year.
As
of December 31, 2025 and 2024, the intrinsic value of outstanding and exercisable options was $0.
The
following table summarizes information about stock options outstanding at December 31, 2025:
Schedule of Stock Options Outstanding
| 
Options Outstanding | | | 
Options Exercisable | | |
| 
Exercise Price | | | 
Outstanding
Number of
Options | | | 
Weighted Average Remaining Life
In Years | | | 
Exercisable
Number of
Options | | |
| 
| | | | 
| | | | 
| | | | 
| | | |
| 
$ | 0.29 | | | 
| 50,323,344 | | | 
| 8.8 | | | 
| 34,067,368 | | |
| 
$ | 0.30 | | | 
| 360,000 | | | 
| 4.5 | | | 
| 360,000 | | |
| 
| | | | 
| 50,683,344 | | | 
| 8.8 | | | 
| 34,427,368 | | |
| F-21 | |
Warrants
The
following table summarizes warrant activity during the year ended December 31, 2024:
Schedule
of Warrant Activity
| 
| | 
Number of Warrants | | | 
Weighted Average Exercise Price | | | 
Weighted Average Remaining Life in Years | | |
| 
| | 
| | | 
| | | 
| | |
| 
Outstanding and exercisable at January 1, 2024 | | 
| 412,000 | | | 
$ | 0.97 | | | 
| | | |
| 
Forfeited | | 
| (412,500 | ) | | 
| 0.97 | | | 
| | | |
| 
Outstanding and exercisable at December 31, 2024 | | 
| - | | | 
$ | - | | | 
| - | | |
There
was no warrant activity during the year ended December 31, 2025.
11.
Income Taxes
The
domestic and foreign components of loss before income taxes from operations for the years ended December 31, 2025 and 2024 are as follows:
Schedule of Domestic and Foreign Loss Before Income Taxes
| 
| | 
2025 | | | 
2024 | | |
| 
| | 
Year ended December 31 | | |
| 
| | 
2025 | | | 
2024 | | |
| 
Components of Pre-Tax Income (Loss): | | 
| | | 
| | |
| 
Domestic | | 
$ | (5,505,122 | ) | | 
$ | (4,763,882 | ) | |
| 
Foreign | | 
| (40 | ) | | 
| (1,745 | ) | |
| 
Net Pre-Tax Loss | | 
$ | (5,505,162 | ) | | 
$ | (4,765,627 | ) | |
The
income tax provision (benefit) consists of the following:
Schedule of Income Tax Provision (Benefit)
| 
| | 
Year ended December 31 | | |
| 
| | 
2025 | | | 
2024 | | |
| 
Federal: | | 
| | | 
| | |
| 
Current | | 
$ | 
- | | | 
$ | 
- | | |
| 
Deferred | | 
| 410,747 | | | 
| 151,885 | | |
| 
| | 
| | | | 
| | | |
| 
State and local: | | 
| | | | 
| | | |
| 
Current | | 
| - | | | 
| - | | |
| 
Deferred | | 
| 33,005 | | | 
| 166,260 | | |
| 
| | 
| | | | 
| | | |
| 
Foreign | | 
| | | | 
| | | |
| 
Current | | 
| - | | | 
| - | | |
| 
Deferred | | 
| (1,068 | ) | | 
| 12,995 | | |
| 
| | 
| (442,684 | ) | | 
| 331,140 | | |
| 
Change in valuation allowance | | 
| 442,684 | | | 
| (331,140 | ) | |
| 
Income tax provision (benefit) | | 
$ | - | | | 
$ | - | | |
| F-22 | |
The
reconciliations between the statutory federal income tax rate and the Companys effective tax rate are as follows:
Schedule of Statutory Federal Income Tax Rate and Effective Tax Rate
| 
| 
| 
| 
| 
| | 
2025 | | 
| 
| 
| 
| | 
2024 | | |
| 
| 
| 
Year Ended December 31 | | |
| 
| 
| 
2025 | | 
| 
2024 | | |
| 
| 
| 
Amount | 
| | 
Percentage | | 
| 
Amount | 
| | 
Percentage | | |
| 
Tax benefit at federal statutory rate | 
| 
$ | 
(1,156,076 | 
) | | 
| (21.0 | )% | 
| 
$ | 
(1,000,049 | 
) | | 
| (21.0 | )% | |
| 
State income taxes, net of federal benefit* | 
| 
| 
(282,688 | 
) | | 
| (5.1 | )% | 
| 
| 
(244,536 | 
) | | 
| (5.1 | )% | |
| 
Permanent differences | 
| 
| 
(63,220 | 
) | | 
| (1.3 | )% | 
| 
| 
482,802 | 
| | 
| 10.1 | % | |
| 
Change in valuation allowance | 
| 
| 
442,684 | 
| | 
| 8.0 | % | 
| 
| 
(331,140 | 
) | | 
| (7.0 | )% | |
| 
Prior year true-up: | 
| 
| 
| 
| | 
| | | 
| 
| 
| 
| | 
| | | |
| 
Timing differences | 
| 
| 
(137,933 | 
) | | 
| (2.5 | )% | 
| 
| 
43,519 | 
| | 
| 0.9 | % | |
| 
Federal NOL carryforward difference | 
| 
| 
(366,375 | 
) | | 
| (6.7 | )% | 
| 
| 
276 | 
| | 
| 0.0 | % | |
| 
State of TN NOL carryforward difference | 
| 
| 
(87,224 | 
) | | 
| (1.6 | )% | 
| 
| 
(51,737 | 
) | | 
| (1.1 | )% | |
| 
Foreign NOL carryforward difference | 
| 
| 
(1,337 | 
) | | 
| 0.0 | % | 
| 
| 
12,558 | 
| | 
| 0.3 | % | |
| 
Expiration of federal & state net operating loss carryforwards | 
| 
| 
| 
| | 
| | | 
| 
| 
| 
| | 
| | | |
| 
Federal | 
| 
| 
1,161,471 | 
| | 
| 21.1 | % | 
| 
| 
749,958 | 
| | 
| 15.7 | % | |
| 
State of TN | 
| 
| 
497,108 | 
| | 
| 9.0 | % | 
| 
| 
364,915 | 
| | 
| 7.7 | % | |
| 
Miscellaneous | 
| 
| 
(6,411 | 
) | | 
| (0.1 | )% | 
| 
| 
(26,566 | 
) | | 
| (0.6 | )% | |
| 
Effective income tax rate | 
| 
$ | 
- | 
| | 
| 0.0 | % | 
| 
$ | 
- | 
| | 
| 0.0 | % | |
| 
* | 100%
State of Tennessee | 
|
The
components of the Companys deferred income taxes are summarized below:
Schedule of Components of Deferred Income Taxes
| 
| | 
2025 | | | 
2024 | | |
| 
| | 
December 31 | | |
| 
| | 
2025 | | | 
2024 | | |
| 
Deferred Tax Assets: | | 
| | | | 
| | | |
| 
Net operating loss carryforwards | | 
$ | 42,142,967 | | | 
$ | 41,456,195 | | |
| 
Research and development credit carryovers | | 
| 3,554,718 | | | 
| 3,456,321 | | |
| 
Stock-based compensation | | 
| 658,163 | | | 
| 428,117 | | |
| 
Intangible assets | | 
| 623,987 | | | 
| 539,373 | | |
| 
Capitalized R&D expenditures | | 
| - | | | 
| 884,683 | | |
| 
Contribution carryovers | | 
| 13,068 | | | 
| - | | |
| 
Accrued liabilities | | 
| 545,523 | | | 
| 311,400 | | |
| 
Gross deferred tax assets | | 
| 47,538,426 | | | 
| 47,076,089 | | |
| 
| | 
| | | | 
| | | |
| 
Deferred Tax Liabilities: | | 
| | | | 
| | | |
| 
Intangible assets | | 
| (784 | ) | | 
| (1,271 | ) | |
| 
Prepaid expenses | | 
| (82,321 | ) | | 
| (62,182 | ) | |
| 
Other | | 
| - | | | 
| - | | |
| 
Gross deferred tax liabilities | | 
| (83,105 | ) | | 
| (63,453 | ) | |
| 
| | 
| | | | 
| | | |
| 
Valuation allowance | | 
| (47,455,321 | ) | | 
| (47,012,636 | ) | |
| 
| | 
| | | | 
| | | |
| 
Deferred tax asset, net of valuation allowance | | 
$ | - | | | 
$ | - | | |
| 
| | 
| | | | 
| | | |
| 
Change in valuation allowance | | 
$ | (442,684 | ) | | 
$ | 331,140 | | |
A
valuation allowance against deferred tax assets is required if, based on the weight of available evidence, it is more likely than not
that some or all of the deferred tax assets may not be realized. The Company is in the early stages of development and realization of
the deferred tax assets is not considered more likely than not. As a result, the Company has recorded a full valuation allowance for
the net deferred tax asset. A portion of the valuation allowance relates to Research and Development credit carryovers. There has been
no formal Research and Development studies performed related to the amounts calculated for these credits. While management believes the
amounts taken as credits are accurate, it is possible a future adjustment would be necessary to reduce the value of the of these credit
carryovers.
| F-23 | |
Since
inception of the Company on January 17, 2002, the Company has generated federal, state, and Australian tax net operating losses of approximately
$166 million, $140 million, and $109 thousand, respectively. Under the Tax Cuts and Jobs Act, federal net operating losses incurred after
December 31, 2017 may be carried forward indefinitely. The tax loss carryforwards of the Company may be subject to limitation by Section
382 of the Internal Revenue Code with respect to the amount utilizable each year. This limitation could reduce the Companys ability
to utilize net operating loss carryforwards. Federal net operating losses (NOLs) totaling $135.0 million expire in various
amounts between 2026 and 2037. Federal NOLS totaling $31.4 million do not expire.
Schedule of Net Operating Loss
| 
Year | | 
Year of | | 
| | |
| 
Generated | | 
Expiration | | 
Amount | | |
| 
2006 | | 
2026 | | 
$ | 7,192,407 | | |
| 
2007 | | 
2027 | | 
| 10,218,952 | | |
| 
2008 | | 
2028 | | 
| 7,017,372 | | |
| 
2009 | | 
2029 | | 
| 9,573,948 | | |
| 
2010 | | 
2030 | | 
| 10,344,298 | | |
| 
2011 | | 
2031 | | 
| 11,225,047 | | |
| 
2012 | | 
2032 | | 
| 11,193,882 | | |
| 
2013 | | 
2033 | | 
| 10,273,181 | | |
| 
2014 | | 
2034 | | 
| 9,075,738 | | |
| 
2015 | | 
2035 | | 
| 17,455,417 | | |
| 
2016 | | 
2036 | | 
| 19,710,699 | | |
| 
2017 | | 
2037 | | 
| 11,703,175 | | |
| 
2018 | | 
N/A | | 
| 6,255,067 | | |
| 
2019 | | 
N/A | | 
| 4,085,063 | | |
| 
2020 | | 
N/A | | 
| 4,167,397 | | |
| 
2021 | | 
N/A | | 
| 3,167,687 | | |
| 
2022 | | 
N/A | | 
| 1,336,826 | | |
| 
2023 | | 
N/A | | 
| 1,114,861 | | |
| 
2024 | | 
N/A | | 
| 4,106,962 | | |
| 
2025 | | 
N/A | | 
| 7,208,598 | | |
| 
Total NOLS | | 
| | 
$ | 166,426,577 | | |
State
NOLS totaling $140.0 million expire in various years between 2026 and 2041.
| 
Year | | 
Year of | | 
| | |
| 
Generated | | 
Expiration | | 
Amount | | |
| 
2010 | | 
2026 | | 
$ | 10,440,651 | | |
| 
2011 | | 
2027 | | 
| 11,362,120 | | |
| 
2012 | | 
2028 | | 
| 11,311,394 | | |
| 
2013 | | 
2029 | | 
| 10,381,763 | | |
| 
2014 | | 
2030 | | 
| 9,278,510 | | |
| 
2015 | | 
2031 | | 
| 18,547,287 | | |
| 
2016 | | 
2032 | | 
| 20,166,661 | | |
| 
2017 | | 
2033 | | 
| 12,131,850 | | |
| 
2018 | | 
2034 | | 
| 6,455,113 | | |
| 
2019 | | 
2035 | | 
| 4,211,210 | | |
| 
2020 | | 
2036 | | 
| 4,234,755 | | |
| 
2021 | | 
2037 | | 
| 3,232,081 | | |
| 
2022 | | 
2038 | | 
| 3,758,942 | | |
| 
2023 | | 
2039 | | 
| 2,122,720 | | |
| 
2024 | | 
2040 | | 
| 4,577,022 | | |
| 
2025 | | 
2041 | | 
| 7,341,058 | | |
| 
Total NOLS | | 
| | 
$ | 139,553,137 | | |
| F-24 | |
Australia
NOLS totaling $109,374 do not expire.
| 
Year Generated | | 
Year of Expiration | | 
Amount | | |
| 
2017 | | 
N/A | | 
$ | 628 | | |
| 
2018 | | 
N/A | | 
| 51,041 | | |
| 
2019 | | 
N/A | | 
| 12,943 | | |
| 
2020 | | 
N/A | | 
| 13,754 | | |
| 
2021 | | 
N/A | | 
| 11,270 | | |
| 
2022 | | 
N/A | | 
| 11,920 | | |
| 
2023 | | 
N/A | | 
| 5,293 | | |
| 
2024 | | 
N/A | | 
| 3,603 | | |
| 
2025 | | 
N/A | | 
| (1,610 | ) | |
| 
Total NOLS | | 
| | 
$ | 109,374 | | |
The
Company has determined that there are no uncertain tax positions as of December 31, 2025 or 2024.
We
file income tax returns in the U.S., Tennessee, and Australia. As of December 31, 2025, the U.S. federal and Tennessee tax years open
to examination are 2022 through 2025. The Australia income tax return remains open to examination for 2023 through 2025.
To
date, the Companys operations conducted by its Australian subsidiary consist primarily of research and development activities.
As of December 31, 2025, there were no accumulated earnings and profits in the Companys foreign subsidiary. At current tax rates,
no additional federal income taxes (net of available tax attributes) would be payable if such earnings were to be repatriated.
12.
Leases
Leases
On
June 18, 2022, the Company moved into 2,700 square feet of leased corporate office space in Knoxville, Tennessee through an operating
lease agreement for a term of three years ending June 30, 2025. The monthly base rent ranged from $4,053 to $4,278 over the term on the
lease.
On
April 24, 2025, the Company entered into the first amendment to its operating lease agreement, extending the lease term by an additional
three years through June 30, 2028. Pursuant to the amendment, monthly base rent will range from $4,391 to $4,616 over the extended term.
Total
expense for operating leases for the year ended December 31, 2025 was $47,523, of which $31,457 was included within research and development
and $16,066 was included within general and administrative expenses on the consolidated statements of operations. Total expense for operating
leases for the year ended December 31, 2024 was $51,446, of which, $34,297 was included within research and development and $17,149 was
included within general and administrative expenses on the consolidated statements of operations.
A
summary of the Companys right-of-use assets and liabilities is as follows:
Schedule
of Right-of-use Assets and Liabilities
| 
| | 
For The Years Ended | | |
| 
| | 
December 31, | | |
| 
| | 
2025 | | | 
2024 | | |
| 
| | 
| | | 
| | |
| 
Cash paid for amounts included in the measurement of lease liabilities: | | 
| | | | 
| | | |
| 
Operating cash flows used in operating leases | | 
$ | 47,637 | | | 
$ | 48,077 | | |
| 
| | 
| | | | 
| | | |
| 
Right-of-use assets obtained in exchange for lease obligations: | | 
| | | | 
| | | |
| 
Operating leases | | 
$ | 150,133 | | | 
$ | - | | |
| 
| | 
| | | | 
| | | |
| 
Weighted Average Remaining Lease Term | | 
| | | | 
| | | |
| 
Operating leases | | 
| 2 years, 6 months | | | 
| 6 months | | |
| 
| | 
| | | | 
| | | |
| 
Weighted Average Discount Rate | | 
| | | | 
| | | |
| 
Operating leases | | 
| 7.0 | % | | 
| 5.0 | % | |
| F-25 | |
Future
minimum payments under the non-cancellable lease as of December 31, 2025 were as follows:
Schedule of Future Minimum Payments Under Non-cancellable Lease
| 
Years | | 
Amount | | |
| 
2026 | | 
$ | 53,364 | | |
| 
2027 | | 
| 54,716 | | |
| 
2028 | | 
| 27,696 | | |
| 
Total lease payments | | 
| 135,776 | | |
| 
Less: amount representing imputed interest | | 
| (8,472 | ) | |
| 
Present value of lease liability | | 
| 127,304 | | |
| 
Less: current portion | | 
| (48,083 | ) | |
| 
Lease liability, non-current portion | | 
$ | 79,221 | | |
13.
401(K) Profit Sharing Plan
The
Company maintains a retirement plan under Section 401(k) of the Internal Revenue Code, which covers all eligible employees. All employees
with U.S. source income are eligible to participate in the plan immediately upon employment. There was no contribution made by the Company
in 2025 or 2024.
14.
Grants
On
October 25, 2021, the Company received a grant award of $2,500,000
from the State of Tennessee for the study of animal cancers and dermatological disorders for the period October 15, 2021 to June 30,
2022 (the Tennessee Grant or Grant). The Tennessee Grant was pre-funded; therefore, the funds did not
need to be used in full by June 30, 2022. The Tennessee Grant was provided as reimbursement of research and development expenses
related to the development of animal health drug products. The Company elected gross presentation of the Tennessee Grant income
earned and the related research and development expenses, with Tennessee Grant income presented as grant revenue in the period in
which it was earned, and qualifying costs presented as research and development expenses included in the Companys
consolidated statement of operations in the period that such costs are incurred. As of December 31, 2024, the Company recorded
$336,108 as
unearned grant revenue liability on the accompanying consolidated balance sheets. The grant award program was completed and fully
recognized during 2025; accordingly, the unearned grant revenue liability was $0
as of December 31, 2025.
The
Company recorded $336,108 and $617,140 grant revenue during the years ended December 31, 2025 and 2024, respectively.
15.
License Transactions
On
March 21, 2024, the Company entered into an exclusive worldwide license agreement (the License Agreement) with the University
of Miami (UM) for the license and development of the UMs intellectual property related to photodynamic antimicrobial
therapy in ophthalmology. The License Agreement grants the Company exclusive, worldwide rights to research, develop, make, use, or sell
Licensed Products and/or Licensed Processes (as defined in the License Agreement) based upon patent-related rights.
As
consideration for the rights granted in the License Agreement, the Company must pay an upfront fee of $10,000, royalties equal to 10%
of net sales of Licensed Products and/or Licensed Processes, and annual payments of $1,000 on the first through fourth anniversaries
of the License Agreement and $10,000 on every anniversary thereafter. In the event of a sublicense to a third party, the Company is obligated
to pay royalties to the University equal to a percentage of sublicense income ranging from 10% to 30% depending on the phase of clinical
trials.
| F-26 | |
Pursuant
to the requirements of the License Agreement, the Company created a new subsidiary VisiRose for the purpose of developing
and commercializing Licensed Products and Licensed Processes, assigned the License Agreement to VisiRose, and entered into an equity
agreement with respect to VisiRoses securities. Pursuant to the equity agreement, VisiRose is required to issue to the University
5% of the total number of issued and outstanding shares of VisiRose. The University has certain anti-dilution rights related to
additional issuances of VisiRose securities before VisiRose receives a total of $2,000,000 in cash.
On
December 5, 2024, the Board approved the formation of a subsidiary of the Company to be incorporated under the laws of the State of Delaware
under the name VisiRose and to pursue the development and commercialization of the Companys pharmaceutical-grade API RBS for the
treatments of ophthalmology diseases and disorders. The certificate of incorporation of VisiRose was filed with the secretary of state
of Delaware on December 5, 2024.
Provectus
holds a majority ownership interest in its subsidiary, VisiRose, with a 89.3%
stake, while the University of Miami retains a 5.0%
ownership interest, and two additional investors hold ownership interests of approximately 5.7%.
In accordance with U.S. Generally Accepted Accounting Principles (GAAP), the Company consolidates VisiRoses financial results
within its consolidated financial statements. During the years ended December 31, 2025 and 2024, the Company recorded a net loss of
$74,273
and $29,585,
respectively, attributable to the noncontrolling interest in VisiRose, reflecting the noncontrolling interests proportionate
share of the subsidiarys losses. During the year ended December 31, 2025 additional investments of $850,000 were received by VisiRose. In connection
with these investments, the University of Miami received an additional 228 shares of common stock.
The
License Agreement sets forth certain diligence milestones that include forming VisiRose, creating a Licensed Product suitable for submission
to the Food and Drug Administration (FDA), generating Licensed Product data suitable for required submission to the FDA,
submitting a drug-device combination application to the FDA, and receiving clearance, approval or other authorization from the FDA for
the Licensed Product portion of the drug-device combination. The License Agreement also provides for development milestone payments of
$5,000 upon the first commercial sale of approved Licensed Product and $50,000 upon net sales of Licensed Product of at least $500,000.
Pursuant
to the License Agreement, the Board approved the transfer of certain assets to VisiRose, such as the License Agreement, and the Companys
exclusive master supply agreement for API and investigational drug product, subject to final review and contract finalization by the
Board. The Company and VisiRose entered into an agreement on December 20, 2024 whereby the Company assigned the License Agreement to
VisiRose, which the University approved.
The
term of the License Agreement is the later of (i) the expiration or abandonment of all issued patents and patent applications related
to patent rights under the License Agreement and/or no royalties are due, (ii) any regulatory exclusivity has expired, and (iii) 20 years
from the first commercial sale of Licensed Product and/or Licensed Process. The License Agreement provides that the Company may terminate
the License Agreement upon 90 days written notice to the University, and each party has the right to terminate the License Agreement
if the other party commits a material breach of the terms of the License Agreement and such breach remains uncured for thirty days after
receipt of written notice.
16.
Commitments, Contingencies and Litigation
The
Company may, from time to time, be involved in litigation arising in the ordinary course of business which may be expected to be covered
by insurance. The Company is not aware of any pending or threatened litigation that, if resolved against the Company, would have a material
adverse effect on the Companys consolidated financial position, results of operations or cash flows.
17.
Segment Reporting
The
Companys only segment is Clinical Stage Biotechnology. The CODM reviews profit and loss information on a consolidated basis in
order to assess performance and make decisions about the allocation of operating and capital resources.
| F-27 | |
The
following table presents disaggregated financial information with respect to the Companys Clinical Stage Biotechnology segment
for the years ended December 31, 2025 and 2024, respectively:
Schedule
of Segment Reporting Information
| 
| | 
2025 | | | 
2024 | | |
| 
| | 
For the Years Ended | | |
| 
| | 
December 31, | | |
| 
| | 
2025 | | | 
2024 | | |
| 
| | 
| | | 
| | |
| 
Grant Revenue | | 
$ | 336,108 | | | 
$ | 617,140 | | |
| 
Operating Expenses: | | 
| | | | 
| | | |
| 
Research and development | | 
| | | | 
| | | |
| 
Clinical trial and research expenses | | 
| 1,318,339 | | | 
| 1,463,422 | | |
| 
Depreciation/amortization | | 
| - | | | 
| 5,294 | | |
| 
Insurance | | 
| 179,358 | | | 
| 225,754 | | |
| 
Payroll and taxes | | 
| 314,014 | | | 
| 270,360 | | |
| 
Stock based compensation | | 
| 54,108 | | | 
| 51,536 | | |
| 
Rent and utilities | | 
| 31,457 | | | 
| 34,297 | | |
| 
Total research and development | | 
| 1,897,276 | | | 
| 2,050,663 | | |
| 
General and administrative | | 
| | | | 
| | | |
| 
Depreciation | | 
| 1,863 | | | 
| 1,863 | | |
| 
Directors fees | | 
| 310,000 | | | 
| (121,250 | ) | |
| 
Donations | | 
| 50,000 | | | 
| - | | |
| 
Insurance | | 
| 122,089 | | | 
| 168,644 | | |
| 
Legal fees | | 
| 450,496 | | | 
| 576,908 | | |
| 
Other general and administrative expenses | | 
| 140,240 | | | 
| 66,372 | | |
| 
Payroll and taxes | | 
| 870,187 | | | 
| 644,479 | | |
| 
Professional fees | | 
| 570,600 | | | 
| 512,500 | | |
| 
Rent and utilities | | 
| 18,455 | | | 
| 19,314 | | |
| 
Stock based compensation | | 
| 1,183,438 | | | 
| 1,229,240 | | |
| 
Travel and entertainment | | 
| 16,229 | | | 
| - | | |
| 
Foreign currency transaction losses | | 
| - | | | 
| 791 | | |
| 
Total general and administrative | | 
| 3,733,597 | | | 
| 3,098,861 | | |
| 
Total Operating Loss | | 
| (5,294,765 | ) | | 
| (4,532,384 | ) | |
| 
| | 
| | | | 
| | | |
| 
Other Income/(Expense): | | 
| | | | 
| | | |
| 
Research and development tax credit | | 
| - | | | 
| 9,320 | | |
| 
Interest expense | | 
| (210,359 | ) | | 
| (239,073 | ) | |
| 
Net Loss | | 
$ | (5,505,124 | ) | | 
$ | (4,762,137 | ) | |
Other
general and administrative expenses primarily include costs associated with office expenses, bank charges, computer-related expenses,
dues and subscriptions, and taxes. These expenses are incurred as part of the day-to-day operations and general administration of the
Companys segment.
18.
Subsequent Events
The
Company has evaluated events that have occurred after the balance sheet date and through the date the consolidated financial statements
were issued. Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have
required adjustment or disclosure in the consolidated financial statements, except as disclosed below.
*Convertible
Notes Payable*
Subsequent
to December 31, 2025, the Company entered into 2025 Notes with a related party investor (a director of the Company) in the aggregate
principal amount of $175,000.
Subsequent to December 31, 2025, the Company entered into 2025 Notes with a non-related party investor in the aggregate principal amount
of $110,000.
*Preferred
Stock*
Subsequent
to December 31, 2025, principal and interest in the aggregate amount of $491,097 representing 2025 Notes were converted into 171,594 shares
of Series D-1 Convertible Preferred Stock upon automatic conversion of the 2025 Notes.
Subsequent to December 31, 2025, the Company filed amendments with the State of Delaware extending the automatic
conversion date of its Series D and Series D-1 Preferred Stock to December 31, 2028.
*VisiRose*
Subsequent
to December 31, 2025, the Companys majority-owned subsidiary, VisiRose, received investments totaling $75,000 in exchange for
the issuance of 396 shares of VisiRose common stock. In accordance with the licensing agreement, VisiRose also issued an additional 40
shares of common stock to the University of Miami to maintain the Universitys 5% ownership interest.
| F-28 | |
| 
ITEM
9. | 
CHANGES
IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE. | |
Not
applicable.
| 
ITEM
9A. | 
CONTROLS
AND PROCEDURES. | |
*Managements
Annual Report on Internal Control over Financial Reporting*
Our
management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f)
and 15d-15(f) under the Exchange Act). Our internal control over financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of our financial statements for external purposes in accordance
with GAAP. Our internal control over financial reporting includes those policies and procedures that: (i) pertain to the maintenance
of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; (ii) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that
receipts and expenditures by us are being made only in accordance with authorizations of our management and directors; and (iii) provide
reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could
have a material effect on the consolidated financial statements.
Under
the supervision and with the participation of our management, including our principal executive officer and principal financial officer,
we conducted an evaluation of the effectiveness of our internal control over financial reporting as of the period covered by this report
based on the criteria for effective internal control described in Internal Control Integrated Framework (2013) issued by the
Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on the results of managements assessment
and evaluation, our management concluded that our internal control over financial reporting was effective as of December 31, 2025.
*Evaluation
of Disclosure Controls and Procedures*
Management,
with the participation of our principal executive officer and principal financial officer, carried out an evaluation of the effectiveness
of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange
Act. Based on this evaluation, our principal executive officer and principal financial officer concluded that, as of the end of the period
covered in this report, our disclosure controls and procedures were effective to provide reasonable assurance that the information required
to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within
the time periods specified in SEC rules and forms, and is accumulated and communicated to our management, including our principal executive
officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.
*Inherent
Limitations on Effectiveness of Controls*
Even
assuming the effectiveness of our controls and procedures, our management, including our principal executive officer and principal financial
officer, does not expect that our disclosure controls or our internal control over financial reporting will prevent or detect all error
or all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the
control systems objectives will be met. In general, our controls and procedures are designed to provide reasonable assurance that
our control systems objective will be met, and our principal executive officer and principal financial officer has concluded that
our disclosure controls and procedures are effective at the reasonable assurance level. The design of a control system must reflect the
fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Further, because of
the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error
or fraud will not occur or that all control issues and instances of fraud, if any, within the Company have been detected. These inherent
limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error
or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management
override of the controls. The design of any system of controls is based in part on certain assumptions about the likelihood of future
events and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.
Projections of any evaluation of the effectiveness of controls in future periods are subject to risks. Over time, controls may become
inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.
*Changes
in Internal Control Over Financial Reporting*
There
has been no change in our internal control over financial reporting that occurred during the fourth quarter of 2025 that has materially
affected, or is reasonably likely to materially affect, our internal control over financial reporting.
| 
ITEM
9B. | 
OTHER
INFORMATION. | |
None.
| 
ITEM
9C. | 
DISCLOSURE
REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS. | |
Not
applicable.
| 28 | |
****
**PART
III**
| 
ITEM
10. | 
DIRECTORS,
EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE. | |
The
information called for by this item is incorporated herein by reference to the definitive Proxy Statement for our 2026 Annual Meeting
of Stockholders, which will be filed with the SEC pursuant to Regulation 14A under the Exchange Act.
| 
ITEM
11. | 
EXECUTIVE
COMPENSATION. | |
The
information called for by this item is incorporated herein by reference to the definitive Proxy Statement for our 2026 Annual Meeting
of Stockholders, which will be filed with the SEC pursuant to Regulation 14A under the Exchange Act.
| 
ITEM
12. | 
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS. | |
The
information called for by this item is incorporated herein by reference to the definitive Proxy Statement for our 2026 Annual Meeting
of Stockholders, which will be filed with the SEC pursuant to Regulation 14A under the Exchange Act.
| 
ITEM
13. | 
CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE. | |
The
information called for by this item is incorporated herein by reference to the definitive Proxy Statement for our 2026 Annual Meeting
of Stockholders, which will be filed with the SEC pursuant to Regulation 14A under the Exchange Act.
| 
ITEM
14. | 
PRINCIPAL
ACCOUNTANT FEES AND SERVICES. | |
The
information called for by this item is incorporated herein by reference to the definitive Proxy Statement for our 2026 Annual Meeting
of Stockholders, which will be filed with the SEC pursuant to Regulation 14A under the Exchange Act.
****
| 29 | |
**PART
IV**
| 
ITEM
15. | 
EXHIBIT
AND FINANCIAL STATEMENT SCHEDULES. | |
**Financial
Statements**
All
financial statements are set forth under Part II, Item 8 of this report.
**Financial
Statement Schedules**
None
**Exhibits**
| 
Exhibit | 
| 
| |
| 
No. | 
| 
Description | |
| 
| 
| 
| |
| 
3.1 | 
| 
Certificate of Incorporation of Provectus Biopharmaceuticals, Inc., as amended (incorporated by reference to Exhibit 3.1 of the Companys annual report on Form 10-K filed with the SEC on March 31, 2017). | |
| 
| 
| 
| |
| 
3.2 | 
| 
Certificate of Designation of Preferences, Rights and Limitations of Series D Convertible Preferred Stock (as amended by the Certificate of Amendment, dated June 24, 2024 and the Certificate of Amendment, dated January 30, 2026). | |
| 
| 
| 
| |
| 
3.3 | 
| 
Certificate of Designation of Preferences, Rights and Limitations of Series D-1 Convertible Preferred Stock (as amended by the Certificate of Amendment, dated March 30, 2022, the Certificate of Amendment dated June 24, 2024, and the Certificate of Amendment, dated January 30, 2026). | |
| 
| 
| 
| |
| 
3.4 | 
| 
Bylaws of Provectus Biopharmaceuticals, Inc. (incorporated by reference to Exhibit 3.4 of the Companys annual report on Form 10-K filed with the SEC on March 13, 2014). | |
| 
| 
| 
| |
| 
4.1 | 
| 
Specimen certificate for the Common Stock, par value $0.001 per share, of the Company (incorporated by reference to Exhibit 4.1 of the Companys annual report on Form 10-KSB filed with the SEC on April 15, 2003). | |
| 
| 
| 
| |
| 
4.2 | 
| 
Specimen certificate for the Common Stock, par value $0.001 per share, of the Company (incorporated by reference to Exhibit 4.1 to the Companys registration statement on Form S-4, Commission File No. 333-208816, filed with the SEC on December 31, 2015). | |
| 
| 
| 
| |
| 
4.3 | 
| 
Form of Unsecured Convertible Promissory Note under the 2021 Financing Term Sheet (incorporated by reference to Exhibit 4.1 of the Companys current report on Form 8-K filed with the SEC on August 18, 2021). | |
| 
| 
| 
| |
| 
4.4 | 
| 
Form of Unsecured Convertible Promissory Note under the 2022 Financing Term Sheet (incorporated by reference to Exhibit 4.1 of the Companys current report on Form 8-K filed with the SEC on September 26, 2022). | |
| 30 | |
| 
4.5 | 
| 
Form of Unsecured Convertible Promissory Note under the 2024 Financing Term Sheet (incorporated by reference to Exhibit 4.1 of the Companys current report on Form 8-K filed with the SEC on July 17, 2024). | |
| 
| 
| 
| |
| 
4.6 | 
| 
Form of Unsecured Convertible Promissory Note under the 2025 Financing Term Sheet (incorporated by reference to Exhibit 4.1 of the Companys current report on Form 8-K filed with the SEC on January 22, 2025). | |
| 
| 
| 
| |
| 
4.7 | 
| 
Description of Securities. | |
| 
| 
| 
| |
| 
10.1* | 
| 
Confidentiality, Inventions and Non-Competition Agreement dated as of November 26, 2002 between the Company and Timothy C. Scott (incorporated by reference to Exhibit 10.9 of the Companys annual report on Form 10-KSB filed with the SEC on April 15, 2003). | |
| 
| 
| 
| |
| 
10.2* | 
| 
Confidentiality, Inventions and Non-Competition Agreement dated as of November 26, 2002, between the Company and Eric A. Wachter (incorporated by reference to Exhibit 10.10 of the Companys annual report on Form 10-KSB filed with the SEC on April 15, 2003). | |
| 
| 
| 
| |
| 
10.3 | 
| 
Material Transfer Agreement dated as of July 31, 2003 between Schering-Plough Animal Health Corporation and the Company (incorporated by reference to Exhibit 10.15 of the Companys quarterly report on Form 10-QSB filed with the SEC on August 14, 2003). | |
| 
| 
| 
| |
| 
10.4 | 
| 
Controlled Equity OfferingSM Sales Agreement, dated April 30, 2014, by and between Provectus Biopharmaceuticals, Inc. and Cantor Fitzgerald & Co. (incorporated by reference to Exhibit 10.1 of the Companys current report on Form 8-K filed with the SEC on April 30, 2014). | |
| 
| 
| 
| |
| 
10.5 | 
| 
Stipulated Settlement Agreement and Mutual Release, dated June 6, 2014, by and among the Company as nominal defendant, H. Craig Dees, Timothy C. Scott, Eric A. Wachter, Peter R. Culpepper, Stuart Fuchs, Kelly M. McMasters, and Alfred E. Smith, IV, as defendants, and Glenn Kleba and Don B. Dale, as plaintiffs (Exhibits Omitted) (incorporated by reference to Exhibit 10.6 of the Companys quarterly report on Form 10-Q filed with the SEC on August 7, 2014). | |
| 
| 
| 
| |
| 
10.6 | 
| 
Definitive Financing Commitment Term Sheet dated March 19, 2017 (incorporated by reference to Exhibit 10.2 of the Companys quarterly report on Form 10-Q filed with the SEC on May 10, 2017). | |
| 
| 
| 
| |
| 
10.7 | 
| 
2020 Definitive Financing Term Sheet (incorporated by reference to Exhibit 10.39 to the Companys annual report on Form 10-K filed with the SEC on March 5, 2020). | |
| 
| 
| 
| |
| 
10.8 | 
| 
2021 Financing Term Sheet (incorporated by reference to Exhibit 10.1 to the Companys quarterly report on Form 10-Q filed with the SEC on November 10, 2021). | |
| 
| 
| 
| |
| 
10.9 | 
| 
2022 Financing Term Sheet (incorporated by reference to Exhibit 10.1 to the Companys quarterly report on Form 10-Q filed with the SEC on November 9, 2022). | |
| 
| 
| 
| |
| 
10.10 | 
| 
2024 Financing Term Sheet (incorporated by reference to Exhibit 10.1 of the Companys current report on Form 8-K filed with the SEC on July 17, 2024). | |
| 
| 
| 
| |
| 
10.11 | 
| 
2025 Financing Term Sheet (incorporated by reference to Exhibit 10.1 of the Companys current report on Form 8-K filed with the SEC on January 22, 2025). | |
| 
| 
| 
| |
| 
10.12 | 
| 
Exclusive License Agreement (with Equity), dated March 21, 2024, by and between the Company and University of Miami (incorporated by reference to Exhibit 10.1 of the Companys current report on Form 8-K filed with the SEC on March 27, 2024). | |
| 
| 
| 
| |
| 
10.13 | 
| 
Assignment and Assumption Agreement, dated December 20, 2024, by and between the Company and VisiRose and approved by the University of Miami (incorporated by reference to Exhibit 10.1 of the Companys current report on Form 8-K filed with the SEC on December 26, 2024). | |
| 31 | |
| 
10.14* | 
| 
Provectus Pharmaceuticals, Inc. 2012 Stock Plan (incorporated herein by reference to Appendix A of the Companys definitive proxy statement filed with the SEC on April 30, 2012). | |
| 
| 
| 
| |
| 
10.15* | 
| 
2017 Amendment and Restatement of the Provectus Biopharmaceuticals, Inc. 2014 Equity Compensation Plan (incorporated herein by reference to Appendix A of the Companys definitive proxy statement filed with the SEC on April 27, 2017). | |
| 
| 
| 
| |
| 
10.16* | 
| 
Provectus Biopharmaceuticals, Inc. 2024 Equity Compensation Program (incorporated by reference to Appendix C of the Companys definitive proxy statement on Schedule 14A filed with the SEC on May 6, 2024). | |
| 
| 
| 
| |
| 
10.17* | 
| 
Form of Common Stock Option Agreement for Officers (incorporated by reference to Exhibit 10.1 of the Companys current report on Form 8-K filed with the SEC on December 5, 2024). | |
| 
| 
| 
| |
| 
10.18* | 
| 
Form of Common Stock Option Agreement for Independent Directors (incorporated by reference to Exhibit 10.2 of the Companys current report on Form 8-K filed with the SEC on December 5, 2024). | |
| 
| 
| 
| |
| 
10.19* | 
| 
Pershing Executive Employment Agreement, dated April 16, 2024, between the Company and Ed Pershing (incorporated by reference to Exhibit 10.1 of the Companys current report on Form 8-K filed with the SEC on April 16, 2024). | |
| 
| 
| 
| |
| 
10.20* | 
| 
Rodrigues Executive Employment Agreement, dated April 16, 2024, between the Company and Dominic Rodrigues (incorporated by reference to Exhibit 10.2 of the Companys current report on Form 8-K filed with the SEC on April 16, 2024). | |
| 
| 
| 
| |
| 
10.21* | 
| 
Raines Amended Executive Employment Agreement, dated December 3, 2024, between the Company and Heather Raines (incorporated by reference to Exhibit 10.3 of the Companys current report on Form 8-K filed with the SEC on December 5, 2024). | |
| 
| 
| 
| |
| 
10.22* | 
| 
Executive Employment Agreement between the Company and Eric A. Wachter, Ph.D., dated May 17, 2019 (incorporated by reference to Exhibit 10.1 of the Companys current report on Form 8-K filed May 20, 2019). | |
| 
| 
| 
| |
| 
10.23 | 
| 
Conversion Agreement, dated June 21, 2024, by and between the Company and Dominic Rodrigues (incorporated by reference to Exhibit 10.1 of the Companys current report on Form 8-K filed with the SEC on June 25, 2024). | |
| 
| 
| 
| |
| 
10.24 | 
| 
Independent Contractor and Director Fee Termination Agreement and Release, dated March 25, 2024, between the Company and Bruce Horowitz (incorporated by reference to Exhibit 10.1 of the Companys current report on Form 8-K filed with the SEC on March 26, 2024). | |
| 
| 
| 
| |
| 
10.25 | 
| 
Indemnification Agreement between the Company and Dominic Rodrigues, dated April 3, 2017 (incorporated by reference to Exhibit 10.3 of the Companys current report on Form 8-K filed with the SEC on April 4, 2017). | |
| 
| 
| 
| |
| 
10.26 | 
| 
Indemnification
Agreement between the Company and Ed Pershing, dated April 19, 2018 (incorporated by reference to Exhibit 10.1 of the
Companys current report on Form 8-K filed with the SEC on April 24, 2018). | |
| 
| 
| 
| |
| 
10.27 | 
| 
Indemnification
Agreement between the Company and Jack Lacey, MD, dated April 19, 2018 (incorporated by reference to Exhibit 10.2 of the
Companys current report on Form 8-K filed with the SEC on April 24, 2018). | |
| 
| 
| 
| |
| 
10.28 | 
| 
Indemnification
Agreement between the Company and Webster Bailey, effective as of July 20, 2020 (incorporated by reference to Exhibit 10.1 of the
Companys current report on Form 8-K filed with the SEC on July 16, 2020). | |
| 32 | |
| 
14 | 
| 
Code of Ethics (incorporated by reference to Exhibit 14 of the Companys annual report on Form 10-K filed with the SEC on March 16, 2011). | |
| 
| 
| 
| |
| 
16 | 
| 
Letter from Marcum dated April 16, 2025 (incorporated by reference to Exhibit 16.1 to the Companys current report on Form 8-K filed with the SEC on April 16, 2025). | |
| 
| 
| 
| |
| 
19 | 
| 
Provectus Biopharmaceuticals, Inc. Securities Trading Policy (incorporated by reference to Exhibit 19 of the Companys annual report on Form 10-K filed with the SEC on March 28, 2025). | |
| 
| 
| 
| |
| 
21 | 
| 
Subsidiaries of the Company (incorporated by reference to Exhibit 21 of the Companys annual report on Form 10-K filed with the SEC on March 28, 2025). | |
| 
| 
| 
| |
| 
31.1 | 
| 
Certification of Principal Executive Officer pursuant to Rules 13a-14(a) of the Securities Exchange Act of 1934. | |
| 
| 
| 
| |
| 
31.2 | 
| 
Certification of Principal Financial Officer pursuant to Rules 13a-14(a) of the Securities Exchange Act of 1934. | |
| 
| 
| 
| |
| 
32 | 
| 
Certification Pursuant to 18 U.S.C. Section 1350. | |
| 
| 
| 
| |
| 
101.INS | 
| 
Inline
XBRL Instance Document the instance document does not appear in the Interactive Data File because its XBRL tags are embedded
within the Inline XBRL document. | |
| 
| 
| 
| |
| 
101.SCH | 
| 
Inline
XBRL Taxonomy Extension Schema Document. | |
| 
| 
| 
| |
| 
101.CAL | 
| 
Inline
XBRL Taxonomy Extension Calculation Linkbase Document. | |
| 
| 
| 
| |
| 
101.LAB | 
| 
Inline
XBRL Taxonomy Extension Label Linkbase Document. | |
| 
| 
| 
| |
| 
101.PRE | 
| 
Inline
XBRL Taxonomy Extension Presentation Linkbase Document. | |
| 
| 
| 
| |
| 
101.DEF | 
| 
Inline
XBRL Taxonomy Extension Definition Linkbase Document. | |
| 
| 
| 
| |
| 
104 | 
| 
Cover
Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | |
| 
| 
Filed
herewith. | |
| 
| 
Furnished
herewith. | |
| 
* | 
Indicates
a management contract or compensatory plan or arrangement. | |
| 
ITEM
16. | 
FORM
10-K SUMMARY. | |
None.
| 33 | |
****
**SIGNATURES**
Pursuant
to the requirements of Section 13 or 15(d) 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.
March
25, 2026
| 
| 
PROVECTUS
BIOPHARMACEUTICALS, INC. | |
| 
| 
| 
| |
| 
| 
By: | 
/s/
Dominic Rodrigues | |
| 
| 
| 
Dominic
Rodrigues | |
| 
| 
| 
President
(principal executive officer) | |
Pursuant
to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.
| 
Signature | 
| 
Title | 
| 
Date | |
| 
| 
| 
| 
| 
| |
| 
/s/
Heather Raines | 
| 
Chief
Financial Officer | 
| 
March
25, 2026 | |
| 
Heather
Raines, CPA | 
| 
(principal
financial officer and principal accounting officer) | 
| 
| |
| 
| 
| 
| 
| 
| |
| 
/s/
Dominic Rodrigues | 
| 
President
and Director, Vice Chairman of the Board | 
| 
March
25, 2026 | |
| 
Dominic
Rodrigues | 
| 
(principal
executive officer) | 
| 
| |
| 
| 
| 
| 
| 
| |
| 
/s/
Webster Bailey | 
| 
Director | 
| 
March
25, 2026 | |
| 
Webster
Bailey | 
| 
| 
| 
| |
| 
| 
| 
| 
| 
| |
| 
/s/
John W. Lacey, III, MD | 
| 
Director | 
| 
March
25, 2026 | |
| 
John
W. Lacey, III, MD | 
| 
| 
| 
| |
| 
| 
| 
| 
| 
| |
| 
/s/
Ed Pershing | 
| 
CEO
and Director and Chairman of the Board | 
| 
March
25, 2026 | |
| 
Ed
Pershing | 
| 
| 
| 
| |
| 34 | |