8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

___________________________________

FORM 8-K

___________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 4, 2023

___________________________________

PhaseBio Pharmaceuticals, Inc.

(Exact name of registrant as specified in its Charter)

___________________________________

Delaware	001-38697	03-0375697
(State or Other Jurisdiction of Incorporation)	(Commission  File Number)	(IRS Employer Identification No.)

3500 S. Dupont Highway

Dover, Delaware 19901

(Address including zip code of principal executive offices)

(610) 981-6500

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

___________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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

Title of each class	Trading Symbol(s)	Name of exchange on which registered
Common Stock, par value $0.001 per share	PHASQ	*

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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.  ☒

*On November 3, 2022, the issuer’s common stock was suspended from trading on The Nasdaq Stock Market LLC (“Nasdaq”). Effective November 4, 2022, trades in the issuer’s common stock began being quoted on the OTC Pink Marketplace under the symbol “PHASQ.” On December 21, 2022, Nasdaq filed a Form 25 to delist the issuer’s common stock and to remove it from registration under Section 12(b) of the Securities Exchange Act of 1934, as amended.

Item 8.01 Other Events.

On May 4, 2023, the Company filed its monthly operating report with the Bankruptcy Court for the month ending March 31, 2023 (the “Monthly Operating Report”). The Monthly Operating Report is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Cautionary Note Regarding the Monthly Operating Report

The Company cautions investors and potential investors not to place undue reliance upon the information contained in the Monthly Operating Report, which was not prepared for the purpose of providing the basis for an investment decision relating to any Company securities. The Monthly Operating Report is limited in scope and has been prepared solely for the purpose of complying with requirements of the Bankruptcy Court. The Monthly Operating Report was not reviewed by independent accountants, is in a format prescribed by applicable bankruptcy laws, and is subject to future adjustment. The financial information in the Monthly Operating Report is not prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), and, therefore, may exclude items required by GAAP, such as certain reclassifications, eliminations, accruals, valuations and disclosures. The Monthly Operating Report also relates to a period that is different from the historical periods required in the Company’s reports pursuant to the Exchange Act.

Cautionary Note Regarding Trading in the Company’s Securities

The Company cautions that trading in the Company’s securities during the pendency of the Chapter 11 Case is highly speculative and poses substantial risks. Trading prices for the Company’s securities may bear little or no relationship to the actual recovery, if any, by holders of the Company’s securities in the Chapter 11 Case. Accordingly, the Company urges extreme caution with respect to existing and future investments in its securities.

Cautionary Note Regarding Forward-Looking Statements

This Current Report on Form 8-K may contain forward-looking statements, including statements regarding the Chapter 11 Case and the Company’s ability to continue operating in the ordinary course while the Chapter 11 Case is pending, within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “anticipates,” “believes,” “expects,” “intends,” “potential,” “projects,” “target,” “will,” “would” and “future” or similar expressions are intended to identify forward-looking statements. These statements are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to, (i) potential adverse effects of the Chapter 11 Case on the Company’s liquidity and results of operations; (ii) the Company’s ability to obtain timely approval by the Bankruptcy Court of the motions filed in the Chapter 11 Case; (iii) uncertainties associated with the Company’s ability to complete the sale of its remaining assets in the Chapter 11 Case, including pursuant to the bidding procedures in connection therewith, or other pleadings filed that could protract the Chapter 11 Case; (iv) employee attrition and the Company’s ability to retain senior management and other key personnel due to the distractions and uncertainties; (v) the Company’s ability to maintain relationships with suppliers, customers, employees and other third parties and regulatory authorities as a result of the Chapter 11 Case; (vi) the effects of the Chapter 11 Case on the Company and on the interests of various constituents, including holders of the Company’s common stock; (vii) the Bankruptcy Court’s rulings in the Chapter 11 Case and the outcome of the Chapter 11 Case generally; (viii) the length of time that the Company will operate under Chapter 11 protection and the continued availability of operating capital during the pendency of the Chapter 11 Case; (ix) risks associated with third party motions in the Chapter 11 Case; (x) increased administrative and legal costs related to the Chapter 11 process; (xi) exposure to potential litigation and inherent risks involved in a bankruptcy process; (xii) diversion of management’s attention from ongoing business operations and opportunities; (xiii) potential adverse reactions or changes to business or employee relationships, including those resulting from the bankruptcy proceedings of the Company; (xiv) risks arising from the delisting of the Company’s common stock from The Nasdaq Stock Market LLC; (xv) the outcome of the Company’s contesting of the break-up fee under the Purchase Agreement, and (xvi) other risks and uncertainties, including those described in the section entitled “Risk Factors” in the Company’s most recent annual or quarterly report filed with the Securities and Exchange Commission and in other filings the Company makes with the Securities and Exchange Commission from time to time. The forward-looking statements herein do not constitute guarantees of future performance, and you are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements speak only as of the date hereof. The Company undertakes no obligation to update the information contained in this Current Report on Form 8-K to reflect new events or circumstances, except as required by law.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Description
99.1	Monthly Operating Report, for the month ending March 31, 2023, filed with the United States Bankruptcy Court for the District of Delaware.
104	Cover page interactive data file (formatted as Inline XBRL).

SIGNATURES

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

	PhaseBio Pharmaceuticals, Inc.
Dated: May 10, 2023	By:	/s/ Jonathan P. Mow
		Jonathan P. Mow
		Chief Executive Officer

EX-99.1

UST Form 11-MOR (12/01/2021) 1 UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In Re. PHASEBIO PHARMACEUTICALS, INC Debtor(s) § § § § Case No. 22-10995 Jointly Administered Monthly Operating Report Chapter 11 Reporting Period Ended: 03/31/2023 Petition Date: 10/23/2022 Months Pending: 5 Industry Classification: 2 8 3 4 Reporting Method: Accrual Basis Cash Basis Debtor's Full-Time Employees (current): 0 Debtor's Full-Time Employees (as of date of order for relief): 49 Supporting Documentation (check all that are attached): (For jointly administered debtors, any required schedules must be provided on a non-consolidated basis for each debtor) Statement of cash receipts and disbursements Balance sheet containing the summary and detail of the assets, liabilities and equity (net worth) or deficit Statement of operations (profit or loss statement) Accounts receivable aging Postpetition liabilities aging Statement of capital assets Schedule of payments to professionals Schedule of payments to insiders All bank statements and bank reconciliations for the reporting period Description of the assets sold or transferred and the terms of the sale or transfer Signature of Responsible Party Printed Name of Responsible Party Date Address /s/ James F. McCauley 05/04/2023 James F. McCauley Richards, Layton & Finger, P.A. 920 N. King Street Wilmington, DE 19801 STATEMENT: This Periodic Report is associated with an open bankruptcy case; therefore, Paperwork Reduction Act exemption 5 C.F.R. § 1320.4(a)(2) applies. Case 22-10995-LSS Doc 610 Filed 05/04/23 Page 1 of 12

UST Form 11-MOR (12/01/2021) 2 Debtor's Name PHASEBIO PHARMACEUTICALS, INC Case No. 22-10995 Part 1: Cash Receipts and Disbursements Current Month Cumulative a. Cash balance beginning of month $15,092,281 b. Total receipts (net of transfers between accounts) $2,217,072 $27,929,868 c. Total disbursements (net of transfers between accounts) $8,823,026 $20,032,678 d. Cash balance end of month (a+b-c) $8,486,326 e. Disbursements made by third party for the benefit of the estate $0 $16,343,728 f. Total disbursements for quarterly fee calculation (c+e) $8,823,026 $36,376,406 Part 2: Asset and Liability Status Current Month (Not generally applicable to Individual Debtors. See Instructions.) a. Accounts receivable (total net of allowance) $0 b. Accounts receivable over 90 days outstanding (net of allowance) $0 c. Inventory ( (attach explanation))Book Market Other $0 d Total current assets $11,119,856 e. Total assets $11,119,856 f. Postpetition payables (excluding taxes) $867,084 g. Postpetition payables past due (excluding taxes) $0 h. Postpetition taxes payable $0 i. Postpetition taxes past due $0 j. Total postpetition debt (f+h) $867,084 k. Prepetition secured debt $0 l. Prepetition priority debt $0 m. Prepetition unsecured debt $28,357,659 n. Total liabilities (debt) (j+k+l+m) $29,224,742 o. Ending equity/net worth (e-n) $-18,104,887 Part 3: Assets Sold or Transferred Current Month Cumulative a. Total cash sales price for assets sold/transferred outside the ordinary course of business $2,207,689 $36,514,198 b. Total payments to third parties incident to assets being sold/transferred outside the ordinary course of business $0 $0 c. Net cash proceeds from assets sold/transferred outside the ordinary course of business (a-b) $2,207,689 $36,514,198 Part 4: Income Statement (Statement of Operations) Current Month Cumulative (Not generally applicable to Individual Debtors. See Instructions.) a. Gross income/sales (net of returns and allowances) $0 b. Cost of goods sold (inclusive of depreciation, if applicable) $0 c. Gross profit (a-b) $0 d. Selling expenses $0 e. General and administrative expenses $466,258 f. Other expenses $2,000,000 g. Depreciation and/or amortization (not included in 4b) $0 h. Interest $0 i. Taxes (local, state, and federal) $0 j. Reorganization items $6,356,769 k. Profit (loss) $-6,605,955 $-10,651,333 Case 22-10995-LSS Doc 610 Filed 05/04/23 Page 2 of 12

UST Form 11-MOR (12/01/2021) 3 Debtor's Name PHASEBIO PHARMACEUTICALS, INC Case No. 22-10995 Part 5: Professional Fees and Expenses Approved Current Month Approved Cumulative Paid Current Month Paid Cumulative a. Debtor's professional fees & expenses (bankruptcy) Aggregate Total $5,044,730 $7,965,605 $5,174,803 $7,965,605 Itemized Breakdown by Firm Firm Name Role i Richards, Layton & Finger, P.ALocal Counsel $352,022 $710,180 $352,022 $710,180 ii Cooley LLP Lead Counsel $2,116,557 $4,039,375 $2,116,557 $4,039,375 iii SierraConstellation Partners, LLFinancial Professional $69,643 $683,512 $199,717 $683,512 iv Miller Buckfire, LLC Financial Professional $2,500,000 $2,500,000 $2,500,000 $2,500,000 v Omni Management Group, Inc. Other $0 $0 $0 $0 vi KPMG LLP Other $6,507 $32,537 $6,507 $32,537 vii viii ix x xi xii xiii xiv xv xvi xvii xviii xix xx xxi xxii xxiii xxiv xxv xxvi xxvii xxviii xxix xxx xxxi xxxii xxxiii xxxiv xxxv xxxvi Case 22-10995-LSS Doc 610 Filed 05/04/23 Page 3 of 12

UST Form 11-MOR (12/01/2021) 4 Debtor's Name PHASEBIO PHARMACEUTICALS, INC Case No. 22-10995 xxxvii xxxvii xxxix xl xli xlii xliii xliv xlv xlvi xlvii xlviii xlix l li lii liii liv lv lvi lvii lviii lix lx lxi lxii lxiii lxiv lxv lxvi lxvii lxviii lxix lxx lxxi lxxii lxxiii lxxiv lxxv lxxvi lxxvii lxxvii Case 22-10995-LSS Doc 610 Filed 05/04/23 Page 4 of 12

UST Form 11-MOR (12/01/2021) 5 Debtor's Name PHASEBIO PHARMACEUTICALS, INC Case No. 22-10995 lxxix lxxx lxxxi lxxxii lxxxii lxxxiv lxxxv lxxxvi lxxxvi lxxxvi lxxxix xc xci xcii xciii xciv xcv xcvi xcvii xcviii xcix c ci Approved Current Month Approved Cumulative Paid Current Month Paid Cumulative b. Debtor's professional fees & expenses (nonbankruptcy) Aggregate Total Itemized Breakdown by Firm Firm Name Role i Other ii iii iv v vi vii viii ix x xi xii xiii xiv Case 22-10995-LSS Doc 610 Filed 05/04/23 Page 5 of 12

UST Form 11-MOR (12/01/2021) 6 Debtor's Name PHASEBIO PHARMACEUTICALS, INC Case No. 22-10995 xv xvi xvii xviii xix xx xxi xxii xxiii xxiv xxv xxvi xxvii xxviii xxix xxx xxxi xxxii xxxiii xxxiv xxxv xxxvi xxxvii xxxvii xxxix xl xli xlii xliii xliv xlv xlvi xlvii xlviii xlix l li lii liii liv lv lvi Case 22-10995-LSS Doc 610 Filed 05/04/23 Page 6 of 12

UST Form 11-MOR (12/01/2021) 7 Debtor's Name PHASEBIO PHARMACEUTICALS, INC Case No. 22-10995 lvii lviii lix lx lxi lxii lxiii lxiv lxv lxvi lxvii lxviii lxix lxx lxxi lxxii lxxiii lxxiv lxxv lxxvi lxxvii lxxvii lxxix lxxx lxxxi lxxxii lxxxii lxxxiv lxxxv lxxxvi lxxxvi lxxxvi lxxxix xc xci xcii xciii xciv xcv xcvi xcvii xcviii Case 22-10995-LSS Doc 610 Filed 05/04/23 Page 7 of 12

UST Form 11-MOR (12/01/2021) 8 Debtor's Name PHASEBIO PHARMACEUTICALS, INC Case No. 22-10995 xcix c c. All professional fees and expenses (debtor & committees) $6,226,695 $9,754,236 $6,356,769 $9,754,236 Part 6: Postpetition Taxes Current Month Cumulative a. Postpetition income taxes accrued (local, state, and federal) $0 $0 b. Postpetition income taxes paid (local, state, and federal) $0 $0 c. Postpetition employer payroll taxes accrued $0 $0 d. Postpetition employer payroll taxes paid $0 $235,546 e. Postpetition property taxes paid $0 $0 f. Postpetition other taxes accrued (local, state, and federal) $0 $-52,159 g. Postpetition other taxes paid (local, state, and federal) $0 $21,619 Part 7: Questionnaire - During this reporting period: a. Were any payments made on prepetition debt? (if yes, see Instructions) Yes No b. Yes NoWere any payments made outside the ordinary course of business without court approval? (if yes, see Instructions) c. Yes NoWere any payments made to or on behalf of insiders? d. Yes NoAre you current on postpetition tax return filings? e. Yes NoAre you current on postpetition estimated tax payments? f. Were all trust fund taxes remitted on a current basis? Yes No g. Yes NoWas there any postpetition borrowing, other than trade credit? (if yes, see Instructions) h. Were all payments made to or on behalf of professionals approved by the court? Yes No N/A i. Do you have: Worker's compensation insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) Casualty/property insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) General liability insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) j. Has a plan of reorganization been filed with the court? Yes No k. Has a disclosure statement been filed with the court? Yes No l. Are you current with quarterly U.S. Trustee fees as set forth under 28 U.S.C. § 1930? Yes No Case 22-10995-LSS Doc 610 Filed 05/04/23 Page 8 of 12

UST Form 11-MOR (12/01/2021) 9 Debtor's Name PHASEBIO PHARMACEUTICALS, INC Case No. 22-10995 Part 8: Individual Chapter 11 Debtors (Only) a. Gross income (receipts) from salary and wages $0 b. Gross income (receipts) from self-employment $0 c. Gross income from all other sources $0 d. Total income in the reporting period (a+b+c) $0 e. Payroll deductions $0 f. Self-employment related expenses $0 g. Living expenses $0 h. All other expenses $0 i. Total expenses in the reporting period (e+f+g+h) $0 j. Difference between total income and total expenses (d-i) $0 k. List the total amount of all postpetition debts that are past due $0 l. Are you required to pay any Domestic Support Obligations as defined by 11 U.S.C § 101(14A)? Yes No m. Yes No N/AIf yes, have you made all Domestic Support Obligation payments? Privacy Act Statement 28 U.S.C. § 589b authorizes the collection of this information, and provision of this information is mandatory under 11 U.S.C. §§ 704, 1106, and 1107. The United States Trustee will use this information to calculate statutory fee assessments under 28 U.S.C. § 1930(a)(6). The United States Trustee will also use this information to evaluate a chapter 11 debtor's progress through the bankruptcy system, including the likelihood of a plan of reorganization being confirmed and whether the case is being prosecuted in good faith. This information may be disclosed to a bankruptcy trustee or examiner when the information is needed to perform the trustee's or examiner's duties or to the appropriate federal, state, local, regulatory, tribal, or foreign law enforcement agency when the information indicates a violation or potential violation of law. Other disclosures may be made for routine purposes. For a discussion of the types of routine disclosures that may be made, you may consult the Executive Office for United States Trustee's systems of records notice, UST-001, "Bankruptcy Case Files and Associated Records." See 71 Fed. Reg. 59,818 et seq. (Oct. 11, 2006). A copy of the notice may be obtained at the following link: http:// www.justice.gov/ust/eo/rules_regulations/index.htm. Failure to provide this information could result in the dismissal or conversion of your bankruptcy case or other action by the United States Trustee. 11 U.S.C. § 1112(b)(4)(F). I declare under penalty of perjury that the foregoing Monthly Operating Report and its supporting documentation are true and correct and that I have been authorized to sign this report on behalf of the estate. /s/ Lawrence R. Perkins Signature of Responsible Party Chief Restructuring Officer Printed Name of Responsible Party 05/04/2023 DateTitle Lawrence R. Perkins Case 22-10995-LSS Doc 610 Filed 05/04/23 Page 9 of 12

UST Form 11-MOR (12/01/2021) 10 Debtor's Name PHASEBIO PHARMACEUTICALS, INC Case No. 22-10995 PageOnePartOne PageOnePartTwo PageTwoPartOne PageTwoPartTwo Case 22-10995-LSS Doc 610 Filed 05/04/23 Page 10 of 12

UST Form 11-MOR (12/01/2021) 11 Debtor's Name PHASEBIO PHARMACEUTICALS, INC Case No. 22-10995 Bankruptcy51to100 NonBankruptcy1to50 NonBankruptcy51to100 Bankruptcy1to50 Case 22-10995-LSS Doc 610 Filed 05/04/23 Page 11 of 12

UST Form 11-MOR (12/01/2021) 12 Debtor's Name PHASEBIO PHARMACEUTICALS, INC Case No. 22-10995 PageFour PageThree Case 22-10995-LSS Doc 610 Filed 05/04/23 Page 12 of 12

In re: PhaseBio Pharmaceuticals, Inc. Case No. 22-10995 Statement of Cash Receipts and Disbursements Summary Reporting Period: March 1 to March 31, 2023 (amounts in $) PhaseBio Pharmaceuticals, Inc. Cash Beginning of Month 15,092,280.53$ Receipts Collections of Accounts Receivable - DIP Loan Proceeds - Inter-Company Cash Transfers - Cash Collateral Proceeds - Sale of Assets 2,207,698.43 Employee Benefit Refunds 9,372.99 Other 0.21 Total Receipts 2,217,071.63 Disbursements Payroll & Taxes 300,623.29 Employee Benefits 550.00 Rent 31,376.24 Insurance - Essential Vendors 8,676.69 Other Operating Disbursements 123,876.65 Interest & Fees - Other 2,001,154.70 Professional Fees 6,356,768.92 U.S. Trustee Quarterly Fees - Court Costs - Total Disbursements 8,823,026.49 Net Cash Flow (Receipts Less Disbursements) (6,605,954.86) Cash - End of Month 8,486,325.67$ Case 22-10995-LSS Doc 610-1 Filed 05/04/23 Page 1 of 8

In re: PhaseBio Pharmaceuticals, Inc. Case No. 22-10995 Statement of Operations Reporting Period: March 1 to March 31, 2023 (amounts in $) Cash-Basis PhaseBio Pharmaceuticals, Inc. Gross Sales -$ Cost of goods sold - Gross profit - Selling expenses - General and administrative expenses 466,257.57 Other expenses 2,000,000.00 Depreciation and/or amortization (not included in 4b) - Interest & Fees - Taxes (local, state, and federal) - Reorganization items 6,356,768.92 Miscellaneous (Income) / Expense (2,217,071.63) Profit (loss) (6,605,954.86)$ Case 22-10995-LSS Doc 610-1 Filed 05/04/23 Page 2 of 8

In re: PhaseBio Pharmaceuticals, Inc. Case No. 22-10995 Balance Sheet Reporting Period: March 1 to March 31, 2023 (amounts in $) PhaseBio Pharmaceuticals, Inc. Cash 8,477,914$ Prepaids 2,641,942 Fixed Assets - Right of Use Asset - Operating - Deposits - Total Assets 11,119,856 Accounts Payable 38,570,418 Payroll Liabilities - Current Portion of JMB Loan - Current Portion of Deferred Sublicense Revenue - Accrued Clinical and MFG, and Other 10,386,190 Accrued Interest - Short Term Operating Lease Liability - Long Term Portion of JMB Debt - Long Term Operating Lease Liability - Long Term Portion of Deferred Sublicense Revenue - Development Derivative - Total Liabilities 48,956,608 Common Stock 50,175 APIC - Common Stock 303,195,368 Treasury Stock (24,178) Retained Earnings (475,199,845) Net Income 134,141,728 Total Equity (37,836,752) Total Liabilities and Equity 11,119,856 Case 22-10995-LSS Doc 610-1 Filed 05/04/23 Page 3 of 8

In re: PhaseBio Pharmaceuticals, Inc. Case No. 22-10995 Schedule of Payments to Insiders Reporting Period: March 1 to March 31, 2023 The Debtor hereby submits this attestation regarding payments to insiders during March 2023. No non-cash transfers were made during this reporting period. /s/ Lawrence Perkins May 4, 2023 Signature of Authorized Individual Date Lawrence Perkins Chief Restructuring Officer Printed Name of Authorized Individual Title of Authorized Individual All payments made to insiders were on account of ordinary course salaries and authorized travel and expense reimbursements in the post petition period and/or in accordance with interim and final orders authorizing the Debtor to pay, among other things, prepetition wages, salaries, employee benefits, and other compensation (Docket Nos. 48 & 141). Case 22-10995-LSS Doc 610-1 Filed 05/04/23 Page 4 of 8

In re: PhaseBio Pharmaceuticals, Inc. Case No. 22-10995 All bank statements and bank reconciliations for the reporting period Reporting Period: March 1 to March 31, 2023 /s/ Lawrence Perkins May 4, 2023 Signature of Authorized Individual Date Lawrence Perkins Chief Restructuring Officer Printed Name of Authorized Individual Title of Authorized Individual The Debtor's standard practice is to ensure that bank reconciliations are completed before closing the books each reporting period. I attest that each of the Debtors’ bank accounts has been reconciled in accordance with their standard practices. The Debtor hereby submits this attestation regarding bank account reconciliations in lieu of providing copies of bank statements, bank reconciliations and journal entries during March 2023. Case 22-10995-LSS Doc 610-1 Filed 05/04/23 Page 5 of 8

RLF1 28894217v.3 IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE _________________________________________ In re: PHASEBIO PHARMACEUTICALS, INC. Debtor.1 ) ) ) ) ) ) ) Chapter 11 Case No. 22-10995 (LSS) _________________________________________ ) GLOBAL NOTES AND STATEMENT OF LIMITATIONS, METHODOLOGY AND DISCLAIMERS REGARDING MARCH 31, 2023 MONTHLY OPERATING REPORT The debtor and debtor in possession (the “Debtor”) in the above-captioned chapter 11 case (the “Chapter 11 Case”) has prepared and filed the attached March 31, 2023 Monthly Operating Report (the “MOR”) in the United States Bankruptcy Court for the District of Delaware (the “Court”). The Debtor has prepared the MOR with the assistance of its advisors and professionals solely for the purpose of complying with the reporting requirements applicable in the Chapter 11 Case and is in a format consistent with the instructions provided by the Office of the United States Trustee for the District of Delaware. The financial information contained herein is unaudited, limited in scope, and is not prepared in accordance with accounting principles generally accepted in the United States of America nor in accordance with federal or state securities laws or other applicable non-bankruptcy law or in lieu of complying with any periodic reporting requirements thereunder. In preparing the MOR, the Debtor relied on financial data available from the limited books and records available to it at the time of such preparation, as well as certain filings from the docket in the Chapter 11 Case. Although the Debtor made commercially reasonable efforts to ensure the accuracy and completeness of the MOR, inadvertent errors or omissions may exist.2 For the avoidance of doubt, the Debtor hereby reserves its right to amend and supplement the MOR as may be necessary or appropriate. Each signatory to the MOR has necessarily relied upon the efforts, statements, advice, and representations of personnel of the Debtor and its advisors and professionals. Each signatory has 1 The last four digits of the Debtor’s federal tax identification numbers is 5697. The Debtor’s principal office is located at 3500 S. Dupont Hwy, Dover, Delaware 19901. 2 The Debtor, and its agents, advisors, attorneys, and other professionals, as applicable, do not guarantee or warrant the accuracy or completeness of the data that is provided in the MOR. Case 22-10995-LSS Doc 610-1 Filed 05/04/23 Page 6 of 8

2 RLF1 28894217v.3 not (and could not have) personally verified the accuracy of each such statement, representation, and answer contained in the MOR. Part 1: Cash Receipts and Disbursements. The MOR presents the Debtor’s receipts and disbursements for the period from March 1, 2023 through March 31, 2023. Part 2: Asset and Liability Status. The amounts identified in Part 2 of the MOR are derived from the Debtor’s unaudited and estimated accrual-based Balance Sheet as of March 31, 2023. Postpetition payables includes accounts payable. Please refer to the notes above for information about presentation and limitations that may exist in the MOR. Part 3: Assets Sold or Transferred. The amount set forth in Part 3(a) “Total cash sales price for assets sold/transferred outside the ordinary course of business” is comprised of the following two components: (i) Isolere Common Stock - In connection with an agreement entered into between the Debtor and Isolere Bio, Inc. (“Isolere”), the Debtor was issued 80,000 shares of Isolere common stock (the “Isolere Common Stock”). On or about February 16, 2023, Isolere entered into a merger with a third party. On March 1, 2023, as a result of the merger, the Debtor received cash consideration of $1,657,698.43 in exchange for the Isolere Common Stock. (ii) De Minimis Asset Sales: Pursuant to the Order Establishing Procedures to Sell or Transfer Certain De Minimis Assets [Docket No. 420], the Debtor sold certain assets during the period from March 1, 2023 through and including March 31, 2023. See Docket No. 566. The assets sold during this period include the following:  Certain equipment sold by the Debtor to Angus Hucknall for $433,500  Certain equipment sold by the Debtor to Isolere Bio for $116,500 Part 4: Income Statement (Statement of Operations). This MOR presents the Debtor’s best estimate of its cash-basis Statements of Operations for the period from March 1, 2023 through March 31, 2023. Please refer to the notes above for information about presentation and limitations that may exist in the MOR. The $2,000,000 amount listed as “Other expenses” in item (f) is the amount paid to Chiesi Farmaceutici, S.p.A. pursuant to the Corrected Order Granting Motion to Enforce Bid Protections [Docket No. 505]. Part 5: Professional Fees and Expenses. The Debtor made payments to certain restructuring professionals during the period from March 1, 2023 through March 31, 2023. On March 29, 2023 the Debtor inadvertently wired $2,524.00 (the “Excess Wire Amount”) to McDermott Will & Emery LLP (“MWE”) in connection with the First Omnibus Order Awarding Interim Allowance of Compensation for Services Rendered and For Reimbursement of Expenses [Docket No. 554]. Upon realizing the error, the Debtor immediately notified MWE, and MWE promptly returned the Excess Wire Amount to the Debtor. For purposes of this MOR, the Excess Wire Amount is not counted as a disbursement for the reporting period ended March 31, 2023. Part 6: Postpetition Taxes. The Debtor collects, withholds, and incurs withholding, income, and property taxes, as well as other business and regulatory fees and assessments (collectively, the Case 22-10995-LSS Doc 610-1 Filed 05/04/23 Page 7 of 8

3 RLF1 28894217v.3 “Taxes and Fees”). The Debtor remits the Taxes and Fees to various federal, state, and local governments (collectively, the “Authorities”). The Debtor pays the Taxes and Fees to the Authorities on a periodic basis, remitting them monthly, semi-monthly, quarterly, semi-annually, or annually depending on the nature and incurrence of a particular Tax or Fee. On November 15, 2022, the Court entered an order [Docket No. 139] authorizing, but not directing, the Debtor to, among other things, pay Taxes and Fees that arise or accrue in the ordinary course of business on a postpetition basis consistent with prepetition practices. The Debtor believes that it is current with respect to any outstanding, postpetition amounts due. Exhibit E: Balance Sheet. This MOR presents the Debtor’s best estimates of its accrual-based Balance Sheet at March 31, 2023. Accrued Clinical and MFG, and Other include Debtor Professional Fees incurred but unpaid as of March 31, 2023. Please refer to the notes above for information and limitations that may exist in the MOR. Case 22-10995-LSS Doc 610-1 Filed 05/04/23 Page 8 of 8

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Cover	May 04, 2023
Cover [Abstract]
Document Type	8-K
Document Period End Date	May 04, 2023
Entity Registrant Name	PhaseBio Pharmaceuticals, Inc.
Entity Incorporation, State or Country Code	DE
Entity File Number	001-38697
Entity Tax Identification Number	03-0375697
Entity Address, Address Line One	3500 S. Dupont Highway
Entity Address, City or Town	Dover
Entity Address, State or Province	DE
Entity Address, Postal Zip Code	19901
City Area Code	610
Local Phone Number	981-6500
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	PHASQ
Security Exchange Name	NONE
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Amendment Flag	false
Entity Central Index Key	0001169245