NOTE 10 – SUBSEQUENT EVENTS

Checkpoint Therapeutics, Inc. Collaboration

In March 2015, we entered into a Global Collaboration (the “Collaboration”) with Checkpoint Therapeutics, Inc. (“Checkpoint”), a subsidiary of CNDO for the development and commercialization of Checkpoint’s anti-PD-L1 and anti-GITR antibody research programs in the field of hematological malignancies.

Under the terms of the Collaboration, we will make an up-front payment of $500,000 as well as make development and sales-based milestone payments up to an aggregate of $164 million, and will pay a tiered single digit royalty on net sales. The royalty term will terminate on a country by country basis upon the later of (i) ten years after the first commercial sale of any applicable licensed product in such country, or (ii) the expiration of the last-to-expire patent held by Dana Farber containing a valid claim to any licensed product in such country.

Mr. Weiss, our Executive Chairman, Interim CEO and President is also is the Executive Vice Chairman of CNDO and the Executive Chairman of Checkpoint.

2015 ATM

In December 2014, we filed a shelf registration statement on Form S-3 (the “2015 S-3”), which was declared effective in January 2015. Under the 2015 S-3, the Company may sell up to a total of $250 million of its securities. In connection with the 2015 S-3, we amended our 2013 ATM with MLV (the “2015 ATM”) such that we may issue and sell additional shares of our common stock, having an aggregate offering price of up to $75.0 million, from time to time through MLV, acting as the sales agent. Under the 2015 ATM we would pay MLV a commission rate of up to 3.0% of the gross proceeds from the sale of any shares of common stock sold through MLV.

Subsequent to the year ended December 31, 2014, we sold a total of 1,369,777 shares of common stock under the 2015 ATM for aggregate total gross proceeds of approximately $19.7 million at an average selling price of $14.36 per share. Net proceeds were approximately $19.3 million after deducting commissions and other transactions costs.