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): June 22, 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 June 22, 2023, the Company filed its monthly operating report with the Bankruptcy Court for the month ending May 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 May 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: June 30, 2023	By:	/s/ Jonathan P. Mow
		Jonathan P. Mow
		Chief Executive Officer

EX-99.1

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RLF1 28758649v.1 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 MAY 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 May 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 665-1 Filed 06/22/23 Page 1 of 7

2 RLF1 28758649v.1 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 May 1, 2023 through May 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 May 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. Pursuant to the Order Establishing Procedures to Sell or Transfer Certain De Minimis Assets [Docket No. 420], the Debtor filed on June 9, 2023 the report regarding certain assets sold or transferred by the Debtors during the period from May 1, 2023 through and including May 31, 2023 [Docket No. 652] (the “De Minimis Sale Report”). As described in the De Minimis Sale Report, the assets sold during this period include the following:  Certain laptops, monitors, keyboards, and office chairs sold to certain non-insider employees of the Debtor for $250. 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 May 1, 2023 through May 31, 2023. Please refer to the notes above for information about presentation and limitations that may exist in the MOR. Part 5: Professional Fees and Expenses. The Debtor made approved payments to certain restructuring professionals during the period from May 1, 2023 through May 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 “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 May 31, 2023. Accrued Clinical and MFG, and Other include Debtor Professional Fees incurred but unpaid as of May 31, 2023. Please refer to the notes above for information and limitations that may exist in the MOR. Case 22-10995-LSS Doc 665-1 Filed 06/22/23 Page 2 of 7

In re: PhaseBio Pharmaceuticals, Inc. Case No. 22‐10995 Statement of Cash Receipts and Disbursements Summary Reporting Period: May 1 to May 31, 2023 (amounts in $) PhaseBio  Pharmaceuticals, Inc. Cash Beginning of Month 7,196,617.98$                     Receipts Collections of Accounts Receivable ‐                                            DIP Loan Proceeds ‐                                            Inter‐Company Cash Transfers ‐                                            Cash Collateral Proceeds ‐                                            Sale of Assets 250.00                                  Employee Benefit Refunds ‐                                            Other 18,005.72                             Total Receipts 18,255.72                             Disbursements Payroll & Taxes 123,552.29                          Employee Benefits ‐                                            Rent ‐                                            Insurance ‐                                            Essential Vendors ‐                                            Other Operating Disbursements 27,910.80                             Interest & Fees ‐                                            Other ‐                                            Professional Fees 487,858.47                          U.S. Trustee Quarterly Fees 250,160.12                          Court Costs ‐                                            Total Disbursements 889,481.68                          Net Cash Flow (Receipts Less Disbursements) (871,225.96)                         Cash ‐ End of Month 6,325,392.02$                     Case 22-10995-LSS Doc 665-1 Filed 06/22/23 Page 3 of 7

In re: PhaseBio Pharmaceuticals, Inc. Case No. 22‐10995 Statement of Operations Reporting Period: May 1 to May 31, 2023 (amounts in $) Cash‐Basis PhaseBio  Pharmaceuticals, Inc. Gross Sales ‐$                                          Cost of goods sold ‐                                            Gross profit ‐                                            Selling expenses ‐                                            General and administrative expenses 151,241.75                          Other expenses ‐                                            Depreciation and/or amortization (not included in 4b) ‐                                            Interest & Fees ‐                                            Taxes (local, state, and federal) ‐                                            Reorganization items 738,018.59                          Miscellaneous (Income) / Expense (18,255.72)                            Profit (loss) (871,004.62)$                       Case 22-10995-LSS Doc 665-1 Filed 06/22/23 Page 4 of 7

In re: PhaseBio Pharmaceuticals, Inc. Case No. 22‐10995 Balance Sheet Reporting Period: May 1 to May 31, 2023 (amounts in $) PhaseBio  Pharmaceuticals, Inc. Cash 6,188,380$                           Prepaids 2,179,323                             Fixed Assets ‐                                            Right of Use Asset ‐ Operating ‐                                            Deposits ‐                                            Total Assets 8,367,703                             Accounts Payable 38,710,836                          Payroll Liabilities ‐                                            Current Portion of JMB Loan ‐                                            Current Portion of Deferred Sublicense Revenue ‐                                            Accrued Clinical and MFG, and Other 6,884,702                             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 45,595,538                          Common Stock 50,175                                  APIC ‐ Common Stock 303,195,368                        Treasury Stock (24,178)                                 Retained Earnings (475,199,845)                       Net Income 134,750,645                        Total Equity (37,227,835)                         Total Liabilities and Equity 8,367,703                             Case 22-10995-LSS Doc 665-1 Filed 06/22/23 Page 5 of 7

In re: PhaseBio Pharmaceuticals, Inc. Case No. 22‐10995 Schedule of Payments to Insiders Reporting Period: May 1 to May 31, 2023 The Debtor hereby submits this attestation regarding payments to insiders during May 2023. No non‐cash transfers were made during this reporting period. /s/ Lawrence Perkins June 22, 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 665-1 Filed 06/22/23 Page 6 of 7

In re: PhaseBio Pharmaceuticals, Inc. Case No. 22‐10995 All bank statements and bank reconciliations for the reporting period Reporting Period: May 1 to May 31, 2023 /s/ Lawrence Perkins June 22, 2023 Signature of Authorized Individual Date Lawrence Perkins Chief Restructuring Officer Printed Name of Authorized Individual Title of Authorized Individual The Debtorʹs 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 May 2023. Case 22-10995-LSS Doc 665-1 Filed 06/22/23 Page 7 of 7

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Cover	Jun. 22, 2023
Cover [Abstract]
Document Type	8-K
Document Period End Date	Jun. 22, 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