As disclosed in the Company’s Annual Report on Form -K and other filings, the Company has been engaged in litigation with Platinum-Montaur Life Sciences LLC (“Platinum-Montaur”), an affiliate of Platinum Management (NY) LLC, Platinum Partners Value Arbitrage Fund L.P., Platinum Partners Capital Opportunity Fund, Platinum Partners Liquid Opportunity Master Fund L.P., Platinum Liquid Opportunity Management (NY) LLC, and Montsant Partners LLC (collectively, “Platinum”), in which Platinum-Montaur was seeking damages of approximately million plus interest.  See Note

 

In addition, the Company is engaged in ongoing litigation with our former President and Chief Executive Officer, Dr. Michael Goldberg. See Notes and

 

The Company has also been engaged in ongoing litigation with Capital Royalty Partners II L.P. (“CRG”) and pursuing recovery of approximately million and other damages. On the Court of Common Pleas of Franklin County, Ohio (the “Ohio Court”) entered a judgment in the amount of million to Navidea, plus statutory interest from the “Judgment”). See Note

 

In the Company executed a binding term sheet to sell the Judgment for million of proceeds to Navidea. On the Company entered into a Stock Purchase Agreement and Letter of Investment Intent with Keystone Capital Partners, LLC (“Keystone”) pursuant to which the Company agreed to issue to Keystone shares of newly-designated Series C Preferred Stock for an aggregate purchase price of million. The Series C Preferred Stock will be guaranteed by a portion of the proceeds of the Judgment. See Note (b).

 

In the Company executed a Stock Purchase Agreement with the investors named therein. Pursuant to the Stock Purchase Agreement, the investors agreed to purchase approximately million shares of the Company’s Common Stock in a private placement for aggregate gross proceeds to the Company of approximately million. Of this amount, approximately million was received during resulting in approximately of stock subscriptions receivable as of The remaining of proceeds were received and the related Common Stock was issued in See Note

 

In the Company executed agreements with existing investors to purchase approximately million shares of the Company’s Common Stock for aggregate gross proceeds to Navidea of approximately million. Of this amount, approximately was received during the quarter of An additional million was received and the related Common Stock was issued during the quarter of through the date of filing this Quarterly Report on Form -Q. As a result, the Company recorded approximately million of stock subscriptions receivable as of The remaining of proceeds have been received as of the date of filing this Quarterly Report on Form -Q. See Notes and (a).

 

Navidea intends to use the net proceeds from these transactions to fund its research and development programs, including continued advancement of its Phase and Phase clinical trials of tilmanocept in patients with rheumatoid arthritis, and for general working capital purposes and other operating expenses.

 

The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted on Among the provisions contained in the CARES Act is the creation of the Payroll Protection Program (“PPP”) that provides for Small Business Administration (“SBA”) Section (a) loans for qualified small businesses. PPP loan proceeds are available to be used to pay for payroll costs, including salaries, commissions, and similar compensation, group health care benefits, and paid leaves; rent; utilities; and interest on certain other outstanding debt. The amount that will be forgiven will be calculated in part with reference to the Company’s full-time headcount during the -week period following the funding of the PPP loan.  On the Company was informed by its lender, Fifth Third Bank (the “Lender”), that the Lender received approval from the SBA to fund the Company’s request for a loan under the SBA’s PPP (the “PPP Loan”). Per the terms of the PPP Loan, the Company will receive total proceeds of from the Lender.  In accordance with the loan forgiveness requirements of the CARES Act, the Company intends to use the proceeds from the PPP Loan primarily for payroll costs, rent and utilities, thus the Company anticipates that of the loan will be forgiven.  See Note (d).

 

During the ongoing COVID- global pandemic, the Company’s primary focus is the safety of its employees, the employees of its clinical trial sites, and the patients enrolled in its clinical trials. The Company is working hard to mitigate any safety risk along with any long-term impact on its clinical development programs. To date, we do believe there has been any appreciable impact to the Company’s clinical development and regulatory timelines resulting from COVID-  However, much of the funding from the transactions described above has been delayed, due in part to the COVID- pandemic and its devastating impact on global financial markets.  The Company is working closely with the parties to these transactions to complete the funding as soon as possible.

 

The Company has experienced recurring net losses and has used significant cash to fund its operations. The Company has considerable discretion over the extent of development project expenditures and has the ability to curtail the related cash flows as needed. The transactions described above have provided approximately million of additional working capital, with another million to be received in the future. The Company also has funds remaining under outstanding grant awards, and continues working to establish new sources of funding, including collaborations, potential equity investments, and additional grant funding that can augment the balance sheet. However, based on our current working capital and our projected cash burn, and without definitive agreements in place for additional funding, management believes that there is substantial doubt about the Company’s ability to continue as a going concern for at least months following the filing of this Quarterly Report on Form -Q.