2024-06-30

 tnxp: SeriesCWarrantMember

 tnxp: SeriesCWarrantMember

 tnxp: SeriesDWarrantMember

 tnxp: SeriesDWarrantMember

 tnxp: TNX4200Member

 2024-06-01
 2024-06-10

 2025-02-01
 2025-02-05

 tnxp: Products1and2Member
 us-gaap: ProductConcentrationRiskMember

 2023-07-01
 2023-09-30

 tnxp: Customer1Member

 tnxp: Customer2Member

 tnxp: Customer3Member

 tnxp: Customer4Member

 tnxp: Customer1Member

 tnxp: Customer2Member

 tnxp: Customer3Member

 tnxp: Customer4Member

 tnxp: Customer5Member

 tnxp: Customer1Member

 tnxp: Customer2Member

 tnxp: Customer3Member

 tnxp: Customer4Member

 tnxp: Customer5Member

 tnxp: Customer1Member

 tnxp: Customer2Member

 tnxp: Customer3Member

 tnxp: Customer4Member

 tnxp: TosymraAndZembraceMember

 tnxp: TosymraAndZembraceMember

 us-gaap: BuildingMember

 us-gaap: BuildingMember

 tnxp: LandImprovementsAndLabEquipmentMember

 us-gaap: ComputerEquipmentMember

 tnxp: FurnitureAndAllOtherEquipmentMember

 us-gaap: LeaseholdImprovementsMember

 tnxp: DevelopedTechnologyZembraceMember

 tnxp: DevelopedTechnologyTosymraMember

 us-gaap: WarrantMember

 us-gaap: WarrantMember

 us-gaap: LandMember

 us-gaap: LandMember

 us-gaap: LandImprovementsMember

 us-gaap: LandImprovementsMember

 us-gaap: BuildingMember

 us-gaap: BuildingMember

 tnxp: FurnitureAndEquipmentMember

 tnxp: FurnitureAndEquipmentMember

 tnxp: LaboratoryEquipmentMember

 tnxp: LaboratoryEquipmentMember

 us-gaap: LeaseholdImprovementsMember

 stpr: MA

 2020-09-28

 stpr: MA

 2020-09-27
 2020-09-28

 2024-05-22

 us-gaap: MeasurementInputSharePriceMember

 us-gaap: MeasurementInputSharePriceMember

 us-gaap: MeasurementInputSharePriceMember

 us-gaap: MeasurementInputRiskFreeInterestRateMember

 us-gaap: MeasurementInputRiskFreeInterestRateMember

 us-gaap: MeasurementInputRiskFreeInterestRateMember

 us-gaap: MeasurementInputRiskFreeInterestRateMember

 us-gaap: MeasurementInputExpectedTermMember

 us-gaap: MeasurementInputExpectedTermMember

 us-gaap: MeasurementInputExpectedTermMember

 us-gaap: MeasurementInputExpectedTermMember

 us-gaap: MeasurementInputPriceVolatilityMember

 us-gaap: MeasurementInputPriceVolatilityMember

 us-gaap: MeasurementInputPriceVolatilityMember

 us-gaap: MeasurementInputDiscountForLackOfMarketabilityMember

 tnxp: WarrantsOneMember

 tnxp: WarrantsTwoMember

 2024-12-07
 2024-12-08

 2023-12-08

 2023-12-07
 2023-12-08

 2025-02-02
 2025-02-03

 2024-06-09

 2024-06-10

 2024-06-27

 2024-01-25

 2025-02-04

 2025-02-05

 2025-02-20

 2025-02-19
 2025-02-20

 us-gaap: AccruedLiabilitiesMember

 us-gaap: AccruedLiabilitiesMember

 tnxp: EarnOutRange5Member

 tnxp: EarnOutRange5Member

 tnxp: SalesMilestonesMember

 2024-04-01
 2024-04-30

 tnxp: TosymraAndZembraceMember

 tnxp: DevelopedTechnologyTosymraMember

 tnxp: DevelopedTechnologyZembraceMember

 tnxp: HealionBioIncMember
 tnxp: AssetPurchaseAgreementMember

 2023-02-01
 2023-02-02

 2024-07-30
 2024-07-31

 2024-07-01

 2024-07-08
 2024-07-09

 2024-07-09

 2024-07-09

 2024-07-08
 2024-07-09

 2024-06-11
 2024-06-12

 2024-06-12

 2024-06-12

 2024-06-26
 2024-06-27

 2024-06-27

 2024-06-27

 2024-03-27
 2024-03-28

 2024-03-28

 tnxp: CommonWarrantsEMember

 2024-03-28

 2024-03-28

 tnxp: CommonWarrantsAMember

 tnxp: CommonWarrantsBMember

 2024-04-01

 tnxp: CommonWarrantsDMember

 tnxp: CommonWarrantsDMember

 tnxp: EquityClassifiedCommonWarrantsDMember

 tnxp: LiabilityClassifiedCommonWarrantsCAndDMember

 tnxp: EquityClassifiedCommonWarrantsDMember

 tnxp: LiabilityClassifiedCommonWarrantsCAndDMember

 2023-10-02

 tnxp: CommonWarrantsAMember

 tnxp: CommonWarrantsBMember

 2023-07-26
 2023-07-27

 2023-07-27

 2023-07-27

 2023-07-31
 2023-08-01

 2020-04-07
 2020-04-08

 tnxp: ShareRepurchaseProgram2024Member

 2024-09-30

 tnxp: ShareRepurchaseProgram2024Member

 tnxp: ShareRepurchaseProgram2024Member

 tnxp: ShareRepurchaseProgram2024Member

 tnxp: ShareRepurchaseProgram2022Member

 tnxp: ShareRepurchaseProgram2022Member

 tnxp: ShareRepurchaseProgram2022Member

 tnxp: ShareRepurchaseProgram2022Member

 tnxp: ShareRepurchaseProgram2023Member

 2023-01-31

 tnxp: ShareRepurchaseProgram2023Member

 tnxp: AmendedAndRestated2020PlanMember

 2020-05-01

 tnxp: AmendedAndRestated2020PlanMember

 tnxp: AmendedAndRestated2020PlanMember
 tnxp: TenPercentOrMoreShareholderMember

 tnxp: AmendedAndRestated2020PlanMember

 us-gaap: ShareBasedCompensationAwardTrancheOneMember

 us-gaap: ShareBasedCompensationAwardTrancheTwoMember

 srt: DirectorMember

 srt: ExecutiveOfficerMember

 us-gaap: GeneralAndAdministrativeExpenseMember

 us-gaap: ResearchAndDevelopmentExpenseMember

 us-gaap: GeneralAndAdministrativeExpenseMember

 us-gaap: ResearchAndDevelopmentExpenseMember

 2023-05-05

 2023-05-04
 2023-05-05

 tnxp: EmployeeStockPurchasePlanMember

 tnxp: EmployeeStockPurchasePlanMember

 2023-01-31

 2024-01-31

 2024-03-31

 2024-06-30

 2024-07-01
 2024-07-31

 2024-07-01
 2024-09-30

 2022-01-01

 tnxp: Warrant1Member

 tnxp: Warrant1Member

 tnxp: Warrant2Member

 tnxp: Warrant2Member

 tnxp: Warrant3Member

 tnxp: Warrant3Member

 tnxp: Warrant4Member

 tnxp: Warrant4Member

 tnxp: Warrant5Member

 tnxp: Warrant5Member

 tnxp: Warrant6Member

 tnxp: Warrant6Member

 tnxp: Warrant7Member

 tnxp: Warrant7Member

 tnxp: Warrant8Member

 tnxp: Warrant8Member

 tnxp: Warrant9Member

 tnxp: Warrant9Member

 tnxp: Warrant10Member

 tnxp: Warrant10Member

 tnxp: Warrant11Member

 tnxp: Warrant11Member

 tnxp: WarrantsOneMember

 tnxp: WarrantsTwoMember

 tnxp: WarrantsOneMember

 tnxp: WarrantsTwoMember

 tnxp: WarrantsThreeMember

 tnxp: WarrantsOneMember

 tnxp: NewLeaseArrangementMember

 tnxp: ResearchOrganizationsMember

 tnxp: DefinedContributionPlan401KPlanMember

 tnxp: DefinedContributionPlan401KPlanMember

 country: IE

 country: CA

 country: IE

 country: CA

 us-gaap: ResearchMember

 country: IE

 2024-10-01

 tnxp: GrantedFebruary2720251Member

 2025-02-24
 2025-02-25

 tnxp: GrantedFebruary2720252Member

 2025-02-24
 2025-02-25

 utr:sqft

 tnxp: Segment

 utr: Y

 UNITED
STATES

 SECURITIES
AND EXCHANGE COMMISSION

 WASHINGTON,
D.C. 20549

 FORM

 (Mark
One)

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For
the Fiscal Year Ended December 31, 2024

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 Commission
File Number 001-36019

 TONIX

 (Exact
name of registrant as specified in its charter)

 Nevada

 26-1434750

 (State
 or other jurisdiction of incorporation or organization)

 (IRS
 Employer Identification No.)

Main Street, Suite 101

 Chatham,
 New Jersey

 07928

 (Address
 of principal executive office)

 (Zip
 Code)

 (862) 799-8599

 (Registrant's
 telephone number, including area code)

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

 Title
 of each class

 Trading
 Symbol

 Name
 of each exchange on which registered

 Common
 Stock, $0.001 par value

 TNXP

 The
 NASDAQ Stock Market LLC

 Securities
registered pursuant to Section 12(g) of the Act: None

by check mark if the registrant is a well-known seasoned issuer, as defined by Rule 405 of the Securities Act. Yes No

by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes No

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

by check mark whether the registrant has submitted electronically, if any, every Interactive Data File required to be submitted
pursuant to Rule 405 of Regulation S-T (§ 229.405 of this chapter) during the preceding 12 months (or for such shorter period
that the registrant was required to submit such files). Yes No

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 definitions of "large accelerated filer," "accelerated filer,"
"smaller reporting company," and an "emerging growth company" in Rule 12b-2 of the Exchange Act

 Large
 accelerated filer

 Accelerated
 filer

 Non-accelerated
 filer

 Smaller
 reporting company

 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.

by check mark whether the registrant has filed a report on and attestation to its management's 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.

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 registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b).

by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

 The
aggregate market value of the voting common equity held by non-affiliates as of June 30, 2024, based on the closing sales price
of the common stock as quoted on The NASDAQ Global Market was $ 6,857,126. For purposes of this computation, all officers and directors
are deemed to be affiliates. Such determination should not be deemed an admission that such directors, officers, or 5 percent
beneficial owners are, in fact, affiliates of the registrant.

 As
of March 17, 2025, there were 6,434,881 shares of registrant's common stock outstanding.

 DOCUMENTS
INCORPORATED BY REFERENCE

 None.

 TABLE
OF CONTENTS

 PAGE

 Item 1.

 Business

 Item 1A.

 Risk Factors

 Item 1B.

 Unresolved Staff Comments

 Item 1C.

 Cybersecurity Disclosures

 Item 2.

 Properties

 Item 3.

 Legal Proceedings

 Item 4.

 Mine Safety Disclosures

 Item 5.

 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

 Item 6.

 Reserved

 Item 7.

 Management's Discussion and Analysis of Financial Condition and Results of Operations

 Item 7A.

 Quantitative and Qualitative Disclosures about Market Risk

 Item 8.

 Financial Statements and Supplementary Data

 – F-35

 Item 9.

 Changes in and Disagreements with Accountants on Accounting and Financial Disclosures

 Item 9A.

 Controls and Procedures

 Item 9B.

 Other Information

 Item 9C.

 Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

 Item 10.

 Directors, Executive Officers and Corporate Governance

 Item 11.

 Executive Compensation

 Item 12.

 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 Item 13.

 Certain Relationships and Related Transactions, and Director Independence

 Item 14.

 Principal Accounting Fees and Services

 Item 15.

 Exhibits, Financial Statement Schedules

 Signatures

 PART
I

 ITEM
1 – BUSINESS

 This
Annual Report on Form 10-K (including the section regarding Management's Discussion and Analysis of Financial Condition
and Results of Operations) contains forward-looking statements regarding our business, financial condition, results of operations
and prospects. Words such as "expects," "anticipates," "intends," "plans," "believes,"
"seeks," "estimates" and similar expressions or variations of such words are intended to identify forward-looking
statements, but are not deemed to represent an all-inclusive means of identifying forward-looking statements as denoted in this
Annual Report on Form 10-K. Additionally, statements concerning future matters are forward-looking statements.

 Although
forward-looking statements in this Annual Report on Form 10-K reflect the good faith judgment of our Management, such statements
can only be based on facts and factors currently known by us. Consequently, forward-looking statements are inherently subject
to risks and uncertainties and actual results and outcomes may differ materially from the results and outcomes discussed in or
anticipated by the forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes
include, without limitation, those specifically addressed under the heading "Risks Factors" below, as well as those
discussed elsewhere in this Annual Report on Form 10-K. Readers are urged not to place undue reliance on these forward-looking
statements, which speak only as of the date of this Annual Report on Form 10-K. We file reports with the Securities and Exchange
Commission ("SEC"). You can read and copy any materials we file or will file with the SEC, which, among other places,
can be found on the SEC's website at  as well as on our corporate website at www.tonixpharma.com).

 We
undertake no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that
may arise after the date of this Annual Report on Form 10-K. Readers are urged to carefully review and consider the various disclosures
made throughout the entirety of this Annual Report, which attempt to advise interested parties of the risks and factors that may
affect our business, financial condition, results of operations and prospects.

 Forward-looking
statements include, but are not necessarily limited to, those relating to:

 Our
 prospects are dependent on the success of TNX 102-SL for the management of Fibromyalgia ("FM") and progressing
 our pipeline through development stages. To the extent regulatory approval of TNX-102 SL is delayed or not granted or, if
 approved, TNX-102 SL is not commercially successful, our business, financial condition and results of operations may be materially
 adversely affected and the price of our common stock may decline.

 The
 commercial success and market acceptance of our products, including the coverage of our products by payors and pharmacy benefit
 managers; our ability to successfully develop and execute our sales, marketing and non-personal and digital promotion strategies,
 including developing and maintaining relationships with customers, physicians, payors and other constituencies, the entry
 of other products competitive with our commercial products;

 Our
 ability to successfully execute business development, strategic partnerships, and investment opportunities to build and grow
 for the future;

 Our
 ability to achieve the expected financial performance from our marketed products Tosymra and Zembrace Symtouch,
 as well as delays, challenges and expenses, and unexpected costs associated with integrating and operating this commercial
 business;

 The
 ability of our third-party manufacturers to manufacture adequate quantities of commercially saleable inventory and active
 pharmaceutical ingredients for each of our products, and our ability to maintain our supply chain;

 Our
 ability to raise additional capital, if necessary;

 The
 timing and results of any future research and development efforts including potential clinical studies relating to any future
 product candidates;

 Our
 common stock maintaining compliance with Nasdaq's minimum closing bid requirement of at least $1.00 per share.

 Business
Overview

 Tonix Pharmaceuticals ("Tonix" or the "Company")
is a fully-integrated biopharmaceutical company developing and commercializing therapeutics to treat, and vaccines to prevent, disease
and alleviate suffering. Tonix's primary focus is to obtain U.S. marketing authorization for TNX-102 SL (cyclobenzaprine HCl sublingual
tablet) 5.6 mg (2 x 2.8 mg tablets) for the management of fibromyalgia ("FM") from the U.S. Food and Drug Administration ("FDA").
The FDA assigned a prescription drug user fee act ("PDUFA") goal date of August 15, 2025, for a decision on marketing authorization
for TNX-102 SL. In addition, we market two FDA-approved, prescription products for the treatment of acute migraine, and we are developing
a robust pipeline of potential new products.

 Our pipeline has been generated from internal discovery, as well as licenses,
acquisitions and collaborations with academic institutions and non-profit organizations. Our development portfolio is focused on central
nervous system ("CNS"), disorders, but also consists of immunology, infectious disease and rare disease, product candidates.
The CNS portfolio includes small molecules and biologics to treat pain, neurologic, psychiatric and addiction conditions and includes
TNX-1300 which is in Phase 2 clinical development to treat cocaine intoxication partially funded by the U.S. National Institute on Drug
Abuse (NIDA). Our immunology portfolio includes TNX-1500 (anti-CD40L monoclonal antibody, or mAb), a biologic which has shown encouraging
results in Phase 1, which we plan to study to prevent organ transplant rejection and treat autoimmune diseases. Our infectious disease
portfolio includes TNX-801 (horsepox, live virus vaccine) a vaccine in development to prevent smallpox and mpox (formerly known as monkeypox)
and TNX-4200, which is a discovery program for broad spectrum antiviral drugs funded by a U.S Department of Defense contract for up to
$34 million over five years. TNX-4200 is being developed at our R&D facility located in Frederick, Maryland, ("RDC"),
which has biosafety level 2 (BSL-2) with BSL-3 components. Tonix's product development candidates are investigational new drugs
or biologics and have not been approved for any indication.

 Central
Nervous System (CNS) Pipeline

 In October 2024, Tonix submitted a New
Drug Application ("NDA") to the FDA for TNX-102 SL 5.6 mg for the management of FM, a proprietary sublingual tablet formulation
of cyclobenzaprine ("CBP") designed for bedtime administration, and in December 2024, the FDA assigned a PDUFA goal date of
August 15, 2025, for a decision on marketing authorization for TNX-102 SL. FM is a chronic pain disorder characterized by widespread pain,
non-restorative sleep, fatigue and impaired cognition. TNX-102 SL is a centrally-acting, non-opioid analgesic designed for long-term bedtime
use and has been studied in three Phase 3 trials using TNX-102 SL 5.6 mg, two studies reported statistically significant results. The
FDA granted TNX-102 SL Fast Track designation in July 2024. We are preparing for a commercial launch of TNX-102 SL in the fourth quarter
of 2025, conditional on FDA approval.

 In
March 2024, Tonix announced it selected two contract manufacturing organizations (CMOs), one of which is Almac Pharma Services,
a member of the privately owned Almac Group, as dual supply sources for the potential launch and commercialization of TNX-102
SL in the U.S.

SL also is being developed also as a treatment for acute stress reaction ("ASR") and to prevent acute stress disorder
("ASD") and posttraumatic stress disorder ("PTSD") under a physician-initiated Investigational New Drug
Application ("IND") in partnership with the University of North Carolina ("UNC") Institute for Trauma
Recovery.

 In addition, TNX-102 SL has active INDs for the treatment of PTSD, agitation in
Alzheimer's disease ("AAD"), alcohol use disorder ("AUD") and the management of multi-site pain associated
with Long COVID (also known as Post-Acute SARS-CoV-2 or PASC). TNX-102 SL for AAD has been granted Fast Track designation by the FDA.
We are currently not actively studying TNX-102 SL in PTSD, AAD or AUD. Tonix is continuously evaluating further indications for which
TNX-102 SL could potentially provide benefit.

 Another
CNS candidate in development is TNX-1300 (double-mutant cocaine esterase) which is in Phase 2 for the treatment of cocaine intoxication.
TNX-1300 has been granted Breakthrough Therapy designation by the FDA. TNX-1300 was licensed from Columbia University in 2019 after a
Phase 2 study showed that it rapidly and efficiently disintegrates cocaine in the blood of volunteers who received intravenous (i.v.)
 cocaine. In August of 2022, we received a Federal Grant from the U.S. National Institute on Drug Abuse ("NIDA") a part
of the U.S. National Institutes of Health ("NIH") to advance the development of TNX-1300 as a treatment for cocaine intoxication.

 Finally, we are developing TNX-1900 (intranasal potentiated oxytocin) for several CNS disorders through investigator-initiated studies. TNX-1900 is in development through investigator-initiated
studies at Massachusetts General Hospital ("MGH") for the treatment of binge eating disorder ("BED"), adolescent
obesity, and bone health in pediatric autism. TNX-1900 is in development through an investigator-initiated study at the University of
Washington for the treatment of social anxiety disorder.

 Immunology
Pipeline

 Our lead candidate in the immunology pipeline is TNX-1500, an Fc-modified humanized
monoclonal antibody ("mAb"), directed against CD40-ligand (CD40L, also known as CD154). TNX-1500 was engineered to modulate
binding to Fc receptors with the goal of maintaining the activity of first-generation mAbs, yet with reduced risk of thrombotic complications.
TNX-1500 is being developed to prevent organ transplant rejection as well as to treat autoimmune conditions. Topline results from a Phase
1 single ascending dose escalation study at 3 mg/kg, 10 mg/kg and 30 mg/kg of TNX-1500 in healthy volunteers was reported in the first
quarter of 2025.

 TNX-1500 has also been studied in combination with other immunosuppressive
agents in allogeneic transplants in non-human primates at MGH. In experiments at MGH, TNX-1500 is being studied as monotherapy or in combination
with other immunosuppressive agents in heart and kidney allogeneic organ transplants in non-human primates. Results from experiments in
kidney and heart transplants indicate that TNX-1500 appears to have comparable efficacy to historical experiments using the chimeric mouse/human
IgG1 version (5c8H1) of the anti-CD40L mAb 5c8.

 TNX-1500 also is being studied in combination with other immunosuppressive
agents in xenogeneic organ transplants in non-human primates at MGH. In some of these studies, genetically engineered ("GE")
pigs in baboon transplants were treated with cold perfused ischemia minimization and a novel co-stimulation-based immunosuppressive regimen
including TNX-1500. The results of these preclinical studies were encouraging and demonstrated the potential of GE pig hearts in the context
of a clinically applicable regimen. The multi-GE pigs were provided by eGenesis and Revivicor. Revivicor is a subsidiary of United Therapeutics.
Some results from the collaboration with MGH and eGenesis were published in the peer-reviewed journal, Nature in 2023. In
March of 2024, MGH announced the first GE pig kidney transplant into a living recipient supported in part by the pre-clinical work with
TNX-1500. Subsequently, several other GE pig kidney transplants have been performed. TNX-1500 treatment has not been used in any human transplant
recipient.

 Our
immunology pipeline also includes TNX-1700, a recombinant Trefoil Factor Family 2 ("hTFF2-HSA") fusion protein that
was licensed from Columbia University in 2019. TNX-1700 consists of TFF2 fused to human serum albumin and is a biologic
being developed to treat gastric and colorectal cancers by an immune-oncology mechanism, in combination with PD1 blockers, and
is in the preclinical stage of development. We presented data that show a murine version of TNX-1700 consisting of a fusion protein
with murine serum albumin was able to evoke anti-tumor immunity in the MC38 mouse model of colorectal cancer as monotherapy and
that TNX-1700 augmented the efficacy of anti-PD1 therapy in both the MC38 model and the CT26.wt mouse models of colorectal cancer. We
plan to request an INTERACT meeting with the FDA in 2025 to seek early guidance on program development.

 Infectious
Disease Pipeline

 Our
infectious disease portfolio includes vaccines based on our live virus vaccine or recombinant pox vaccine ("RPV")
platform. Live virus vaccines are believed to protect against poor clinical outcomes of infectious diseases by eliciting T cell
responses in addition to antibody responses.

 TNX-801, a live minimally replicative vaccine based on synthesized
horsepox, is in the pre-IND stage of development to protect against smallpox and mpox. In 2022 the WHO determined that the upsurge of
mpox Clade IIb constituted a public health emergency of international concern (PHEIC). Mpox Clade IIB subsequently has become endemic
in the U.S. mostly in populations of men who have sex with men. In August 2024, the WHO determined that the upsurge of mpox clade Ib in
a growing number of countries in Africa constituted a PHEIC. The WHO reaffirmed the PHEIC status of mpox clade Ib in February of 2025.
Mpox cases of the new clade Ib mpox have been detected in the United States and many other countries outside of Africa. Non-human primates
vaccinated with TNX-801 were protected from mpox clade Ia in studies reported in the first quarter of 2020 and published in the peer-reviewed
journal Vaccines in 2023.

 In September 2024, at the DoD's MHSRS conference and in October 2024 at the
World Vaccine Congress in Barcelona, Spain, Tonix presented new data on a potential mpox vaccine, TNX-801, demonstrating tolerability
and no evidence of spreading to blood or tissues, even at high doses, in immunocompromised animals. After a single-dose vaccination, TNX-801
prevented clinical disease and lesions, and also decreased shedding in the mouth and lungs of animals after a lethal challenge with clade
Ia monkeypox. These findings are consistent with TNX-801 inducing mucosal immunity and suggest TNX-801 may block forward transmission.
In September 2024, the Company also announced that the WHO's preferred target product profile ("TPP") aligns with the
characteristics of TNX-801. Key elements of the WHO draft TPP include single-dose, durable protection, administration without special
equipment, and stability at ambient temperature. Other potential beneficial characteristics include the ability to limit forward transmission,
use in case-contact vaccination strategies and suitability for use in immunocompromised individuals.

 In October 2023, at the World Vaccine Congress - Europe, we reported that
the TNX-801 vaccine was shown to be greater than 10 to 1,000-fold more minimally replicative than older vaccinia-based smallpox vaccines
in both human primary cell lines and immunocompromised mice. In October 2024, at the World Vaccine Congress - Europe, we highlighted positive
preclinical efficacy data of TNX-801, demonstrating tolerability in immunocompromised animals and showed that TNX-801 is unable to spread
in blood or tissues in these animals, even at an approximately 100-fold higher dose than 20th century vaccinia vaccines in immune-comprised
mice. These data were published in the peer-reviewed journal mSphere in 2024.

 TNX-801 also serves as the live virus vaccine platform for other infectious
diseases for which subsequent products will be designed by expressing other viral antigens in the horsepox vector. The company's
Good Manufacturing Practice ("GMP")-capable advanced manufacturing facility in Dartmouth, MA was purpose-built to manufacture
TNX-801. The GMP suites are currently decommissioned but are ready to be reactivated in case of a national or international emergency.

 TNX-1800 is a live virus vaccine on the RPV platform that expresses the
SARS-CoV-2 spike protein from the ancestral Wuhan strain, which has shown encouraging results in non-human primates. In June 2024, the
Company announced preclinical data, demonstrating immunity and tolerability, during an oral keynote talk at the Vaccine Congress 2024.
Like TNX-801, TNX-1800 is a live minimally replicative vaccine based on horsepox that is believed to provide immune protection with better
tolerability than modern vaccinia viruses. TNX-1800 was selected by the NIH's Project NextGen for inclusion in clinical trials as
part of a select group of next generation COVID-19 vaccine candidates with the intent to identify promising vaccine platforms. If Tonix
is able to provide TNX-1800 to NIH, they would conduct a Phase 1 trial and cover the full cost. However, Tonix has not prioritized the
production of TNX-1800, so it is uncertain whether or how quickly this project will progress. The COVID-19 vaccines approved for use in
the U.S. have provided significant health benefits to the vaccinated population; however, they have shown limitations in the durability
of protection conferred, and in their ability to block forward transmission. Live virus vaccines that protect against other viral diseases
by eliciting T cell responses have shown durability of protection that lasts years to decades, and some live virus vaccines have significantly
inhibited forward transmission. With respect to TNX-1800 vaccination, we reported positive efficacy data from animal challenge studies
using live SARS-CoV-2 in the first quarter of 2021. These data were published in the peer-reviewed journal Vaccines in 2023. In
this study, TNX-1800 vaccinated, SARS-CoV-2 challenged animals had undetectable SARS-CoV-2 in the upper airways, which we believe relates
to potential inhibition of forward transmission of this respiratory pathogen.

 Tonix
is developing potential broad-spectrum antiviral drugs in three programs: CD45-targeted therapeutics (TNX-4200), cathepsin inhibitors
(TNX-3900) and viral glycan-targeted engineered biologics (TNX-4000). The DoD announced in December 2022 a plan to move beyond
a 'one bug, one drug' approach and are seeking broad-spectrum drugs since it may be hard to predict which or how many
viruses may be deployed on the battlefield.

 In July 2024 Tonix was awarded a contract with a potential for up to $34
million over five years by the Defense Threat Reduction Agency (DTRA), an agency within the DoD. The objective of the contract is to develop
small molecule broad-spectrum antiviral agents for the prevention or treatment of infections to improve the medical readiness of military
personnel in biological threat environments. Tonix's program will focus on optimization and development of its TNX-4200 program,
to develop an orally available CD45 antagonist with broad-spectrum efficacy against a range of viral families through preclinical evaluation.
The program is expected to establish physicochemical properties, pharmacokinetics, and safety attributes to support an IND submission
and to fund a first-in-human Phase 1 clinical study. Tonix plans to leverage previous research on phosphatase inhibitors, specifically
compounds that target CD45, to optimize lead compounds for therapeutic intervention of biothreat agents and provide the government with
a complete and cost-effective solution for a broad-spectrum medical countermeasure. Tonix's premise is that partial inhibition of
CD45 will provide optimal antiviral protection while requiring lower plasma drug concentrations, a lower dose, and a better safety profile.

 Tonix will utilize its state-of-the-art research laboratory capabilities,
including a Biosafety Level 3 (BSL-3) lab and an Animal Biosafety Level 3 (ABSL-3) facility at the RDC, as well as experienced personnel
in-house.

 Rare
Disease Pipeline

 Our rare disease portfolio consists of TNX-2900 (intranasal potentiated
oxytocin) for Prader-Willi syndrome ("PWS"), a genetic disorder characterized by complex symptoms. The formulation technology
for TNX-2900 was acquired from Trigemina, Inc. and licensed from Stanford University in 2020. The potentiated formulation includes magnesium,
which has been shown in animal studies to potentiate binding of oxytocin to the oxytocin receptor. The therapeutic technology was licensed
from Inserm, the French National Institute of Health and Medical Research. TNX-2900 was granted Orphan-Drug Designation by the FDA in
the second half of 2023 and the IND was cleared by the FDA in the fourth quarter of 2023 and received Rare Pediatric Disease Designation
on March 21, 2024. PWS, an orphan condition, is a rare genetic disorder of failure to thrive in infancy, associated with uncontrolled
appetite beginning in childhood with complications of obesity and diabetes. We have sponsored a research program at Inserm to study oxytocin
on suckling behavior in mice that have been engineered to express one of the PWS gene mutations.

 Marketed
Medicines

 Our
commercial portfolio consists of two FDA-approved prescription products for the treatment of migraine: Zembrace SymTouch (sumatriptan
injection) 3 mg and Tosymra (sumatriptan nasal spray) 10 mg. Zembrace SymTouch and Tosymra are both indicated for the treatment
of acute migraine with or without aura in adults. Zembrace SymTouch is the only branded sumatriptan autoinjector professionally
promoted in the United States and is designed for ease of use and favorable tolerability with a low 3 mg dose. Tosymra is a novel
intranasal sumatriptan product formulated with a permeation enhancer that provides rapid and efficient absorption of sumatriptan.
Tosymra was approved on the basis of bioequivalence to subcutaneous ( s.c.) sumatriptan. Tonix Medicines is the only manufacturer
with both a branded injectable and nasal spray indicated for the acute treatment of migraine with or without aura in adults.

 In
September 2024, Tonix announced that the United States Patent and Trademark Office (USPTO) issued U.S. Patent No. 12,097,183 to
the Company, claiming use of a pre-filled autoinjector comprising a composition of Zembrace SymTouch for treating migraines
via subcutaneous administration. This patent, excluding possible patent term extensions, is expected to fortify protection and
market exclusivity into 2036. Additionally, Tonix announced that the USPTO issued U.S. Patent No. 12,090,139 to the Company, claiming
a pharmaceutical composition, a method of treating migraine via intranasal administration, and an intranasal delivery system for
Tosymra. This patent is expected to fortify protection and market exclusivity into 2030.

 In
June 2024, the Company presented data at the 66th Annual Scientific Meeting of the American Headache Society (AHS) comparing real-world
data with real-world usage of non-oral migraine products with the most recent AHS consensus statement. This data stressed the
need for customizing treatment of migraine headaches to the needs of patients. Thus far, real world data show that conformity
with the guidelines and the consensus statement have yet to be achieved but has the potential to be increased. The data show the
use of non-oral drugs for treating an acute migraine attack was only 7% in 2012 and has decreased to below 4% in 2023, when the
potential need for such drugs is anticipated to be a more substantial percentage of migraineurs based on epidemiological data.
In 2024, Tonix Medicines launched a national educational campaign focusing on the link between migraine, gastroparesis, and the
need for non-oral acute migraine therapies.

 Facilities

 Relating to our
development programs, we own and operate the RDC in Frederick, Maryland consisting of one building totaling approximately 48,000
square feet. The RDC conducts research on CNS, immunology, and infectious disease candidates. The RDC facility is mostly biosafety
level 2 (BSL-2), with some components designated BSL-3. We also own an Advanced Development Center ("ADC") located in
the New Bedford business park in Dartmouth, Massachusetts. This approximately 45,000 square foot BSL-2 facility is intended to
accelerate development, clinical and commercial scale manufacturing of live-virus vaccines and biologics to support clinical
trials. This facility was decommissioned in 2024 but Tonix has the ability to reactivate it should we choose to do so.

 We are led by a management team with significant industry experience in
commercialization and drug development. We complement our management team with a network of scientific, clinical, and regulatory advisors
that includes recognized experts in their respective fields.

 Our
Strategy

 Our
strategy is to use our integrated development and marketing capabilities to advance innovative programs across multiple therapeutic
areas through the drug development process, with the ultimate objectives of FDA approval and commercialization. The principal
components of our strategy are to:

 Pursue
 CNS, rare disease, immunology, and infectious disease indications with high unmet medical need and significant commercial
 potential. We are pursuing multiple indications that are underserved with limited, effective treatment options.
 Our latest stage product candidate is TNX-102 SL for the management of FM, a condition which affects between 6-12
 million adults in the U.S. Fewer than half of those treated for FM receive relief from the three FDA-approved drugs.

 Our
 broader development strategy is to leverage the patented formulation and proven mechanism of action to explore the clinical
 potential of TNX-102 SL in multiple other, psychiatric, and addiction conditions, including ASR, ASD, AAD and AUD, all of which are
 underserved by currently approved medications or have no approved treatment. Within CNS, Tonix is also developing TNX-1300 to treat
 cocaine intoxication and TNX-1900 to treat binge eating disorder, adolescent obesity, social anxiety disorder and improvement in
 bone health in autism. Cocaine intoxication is one of the leading causes of overdose deaths and for which there is no
 currently approved drug. With TNX-1500, we are pursuing a treatment to prevent organ transplant rejection as well as autoimmune
 conditions. TNX-1500 is a third generation humanized mAb targeting CD40L that has the potential to deliver efficacy without
 compromising safety, based on modulated binding to Fc receptors. At this time, no mAb against CD40L has been licensed anywhere in
 the world. Within infectious diseases, we are currently focusing on the development of TNX-801 to prevent smallpox and mpox. While
 there are FDA-approved vaccines to prevent smallpox and mpox, we believe TNX-801 has potential to provide durable protection. While
 there are FDA-approved COVID-19 vaccines which use mRNA technology, or other technologies, we believe that there are limitations to
 these vaccines relating to durability of protection and their relative inability to block forward
 transmission.

 Maximize
 the commercial potential of our lead product candidates. We plan to commercialize each of our lead product candidates,
 including our latest stage candidate, TNX-102 SL, either on our own or through collaboration with partners. We believe
 the acquisition of our two FDA-approved, marketed products for the treatment of acute migraine (Zembrace SymTouch and
 Tosymra) positions Tonix to build out commercial capability to market the migraine products and to launch TNX-102 SL for
 fibromyalgia. An alternative strategy would be to enter into partnership agreements with drug companies that already have
 significant marketing capabilities in the same, or similar, therapeutic areas. If we determine that such a strategy would
 be more favorable than developing our own sales capabilities, we will seek to enter into collaborations with pharmaceutical
 or biotechnology companies for commercialization.

 In
 preparation for the launch of TNX-102 SL, we have added to our team of professionals to market and distribute our products. Our
 commercial team is engaged in marketing and distributing our products and is also engaged in planning the launch of TNX-102 SL
 contingent on FDA approval.

 Pursue
 a broad intellectual property strategy to protect our product candidates. We are pursuing a broad patent strategy
 for our product candidates, and we endeavor to generate new patent applications as supported by our innovations and conceptions
 as well as to advance their prosecution. In the case of TNX-102 SL, we own patents and patent applications protecting its
 composition-of-matter, certain methods of its use, its formulation, and its pharmacokinetic properties. In the case of TNX-801
 and TNX-1800, we own patent applications protecting their composition-of-matter and certain methods of use. We also own patents
 through in-licensing transactions for TNX-1300, TNX-1900, TNX-2900, and TNX-1700. We have filed patent applications for TNX-1500.
 We plan to opportunistically apply for new patents to protect our product candidates.

 Pursue
 additional indications and commercial opportunities for our product candidates. We plan to maximize the value
 of our other product candidates by pursuing other indications and commercial opportunities for such candidates. For example,
 we own rights related to the development and commercialization of TNX-102 SL for generalized anxiety disorder, depression,
 and fatigue related to disordered sleep. For TNX-1900, we own the rights to develop this for craniofacial pain, and insulin
 resistance. Finally, our live virus platform using our RPV technology may be developed as vaccines for future pandemics, infectious
 diseases generally, in addition to smallpox and mpox, and for oncology applications.

 Disease
and Market Overview

 Our
product candidates address disorders that are not well served by currently available therapies or have no approved treatment which
represent large potential commercial market opportunities. Background information on the disorders and related commercial markets
that may be addressed by our product candidates in or nearing the clinical stage of development is set forth below.

 Central
Nervous System

 Fibromyalgia
(FM)

 Fibromyalgia
is a common chronic pain disorder that is understood to result from amplified sensory and pain signaling within the central nervous
system, called central sensitization. Brain imaging studies have localized the functional disorder to the brain's insular
and anterior cingulate cortex. Fibromyalgia afflicts more than 10 million adults in the U.S., the majority of whom are women.
Symptoms of fibromyalgia include chronic widespread pain, non-restorative sleep, fatigue, and brain fog (or cognitive dysfunction).
Other associated symptoms include mood disturbances, including depression, anxiety, headaches, and abdominal pain or cramps. Individuals
suffering from fibromyalgia often struggle with their daily activities, have impaired quality of life, and frequently are disabled.
Physicians and patients report common dissatisfaction with currently marketed products. Fibromyalgia is now recognized as the
prototypic nociplastic syndrome. Nociplastic pain is the third primary type of pain in addition to nociceptive pain and neuropathic
pain. Many patients present with pain syndromes that are combinations of the three primary types of pain. Nociplastic syndromes
can involve components of both central and peripheral sensitization. Fibromyalgia can occur without any identifiable precipitating
event. However, many fibromyalgia cases follow one or more precipitating event(s) including: chronic nociceptive or neuropathic
pain states; recovery from an infectious illness; a cancer diagnosis or cancer treatment; a metabolic or endocrine stress; or
a traumatic event. In the cases of recovery from an infectious illness, fibromyalgia is considered an Infection-Associated Chronic
Condition. In addition to fibromyalgia cases associated with other conditions or stressors, the U.S. National Academies of Sciences,
Engineering, and Medicine, has concluded that fibromyalgia is a diagnosable condition that occurs after recovery from COVID-19
in the context of Long COVID. Fibromyalgia is also recognized as a Chronic Overlapping Pain Condition, due to shared symptoms
with chronic fatigue syndrome/myalgic encephalomyelitis, irritable bowel syndrome, endometriosis, low back pain, post-concussive
syndrome (also known as mild traumatic brain injury), chronic Lyme disease, chronic diabetic neuropathy and chronic post-herpetic
neuralgia.

 We believe that diagnosing fibromyalgia in Long COVID patients will increase
the potential market for TNX-102 SL as compared to market estimates from before the COVID-19 pandemic. Tonix has previously
presented its analysis of real-world evidence from the TriNetX claims database suggesting that over 40% of Long COVID patients present
with a constellation of symptoms that overlap with fibromyalgia.

 According to reports by Frost
and Sullivan and Eversana that we commissioned, despite the availability of approved medications, the majority of patients fail therapy
due to either insufficient efficacy, poor tolerability, or both. Prescription pain and sleep medications are frequently prescribed off-label
for symptomatic relief, despite the lack of evidence that such medications provide a meaningful or durable therapeutic benefit, and many
of these medications carry significant safety risks and risk of dependence. For example, based on U.S. claims data, approximately 50%
of patients diagnosed with FM are prescribed opioids within 18 months of diagnosis, despite the lack of evidence for their effectiveness
and the risk of addiction and toxicity, including overdose.

 Cocaine
Intoxication

 Cocaine
is an illegal recreational drug taken for its pleasurable effects and associated euphoria. Pharmacologically, cocaine blocks the
reuptake of the neurotransmitter dopamine from central nervous system synapses, resulting in the accumulation of dopamine within
the synapse and an amplification of dopamine signaling that is related to its role in creating positive feeling. With the continued
use of cocaine, however, intense cocaine cravings occur resulting in a high potential for abuse and addiction, or dependence,
as well as the risk of cocaine intoxication. Cocaine intoxication refers to the deleterious effects on other parts of the body,
especially those involving the cardiovascular system. Common symptoms of cocaine intoxication include tachyarrhythmias and elevated
blood pressure, either of which can be life-threatening. As a result, individuals with known or suspected cocaine intoxication
are sent immediately to the emergency department, preferably by ambulance in case cardiac arrest occurs during transit. There
are approximately 505,000 emergency room visits for cocaine abuse each year in the U.S., of which 61,000 require detoxification
services. According to the National Institute on Drug Abuse, cocaine-involved deaths rose nearly 54% from 2019 to 2021, resulting
in over 24,486 deaths total.

 Acute
Stress Disorder (ASD)

 ASD
is a mental health condition that can occur within the first month of experiencing a traumatic event. The symptoms are similar
to those of PTSD and can affect both civilian and military populations. According to the National Center for PTSD, in the U.S.
about 60% of men and 50% of women experience at least one trauma in their lives. In the U.S. alone, one-third of emergency department
visits (40-50 million patients per year) involve evaluation after trauma exposures, and in a 2014 study involving U.S. veterans,
87% reported exposure to at least one potentially traumatic event during their service. No medications are currently available
at or near the point of care to treat patients suffering from acute traumatic events and to support long-term health.

 Immunology

 Organ
Transplant Rejection

 Organ
transplant rejection occurs when the immune system of the organ recipient attacks the new organ as if it was an infection or tumor.
Often transplantation is the last resort for most end-stage organ failure patients, affecting either kidneys, liver, heart, lungs,
and/or pancreas. Genetic disparity between organ donor and recipient is often at the root of the rejection. Mismatched or not
closely matched organs triggers an immune reaction that leads to rejection. Overcoming this difficulty is paramount to a patient's
survival as organ donations are in limited supply.

 Gastric
and Colorectal cancers

 Gastric
or stomach cancer is a disease in which malignant cancer cells line the inner lumen of the stomach. Development of this form of
cancer is often influenced by age, diet and other stomach diseases. This type of cancer begins to form in the mucosa, the surface
of the lumen that is in direct contact with the contents of the stomach, and spreads through the outer layers of the stomach as
the tumor grows.

 Currently, per the National Cancer Institute, the 5-year relative survival
for stomach cancer is 36.4%. According to 2018-2021 data, approximately 0.8 percent of men and women will be diagnosed with stomach cancer
during their lifetime. In 2021, there were an estimated 130,263 people living with stomach cancer in the U.S. As of 2024, there were approximately
26,890 new cases with 10,880 deaths.

 Colorectal
cancer includes cancers in the colon and the rectum, organs that are crucial to absorption of water by the body and the elimination
of food-waste. Most colorectal cancers start as a growth or polyp on the inner lining of the colon or rectum. Some types of polyps
can change into cancer over time (usually many years), but not all polyps become cancer. Adenomatous polyps are the ones that
turn malignant with time. Similar to gastric cancer, malignancy begins in the mucosal layer and spreads outwards.

 The 5-year relative survival rate with colorectal cancer is 65.0%, per
the National Cancer Institute. Based on 2018-2021 data, approximately 4.0 percent of men and women will be diagnosed with colorectal cancer
during their lifetime. In 2021, there were an estimated 1,392,445 people living with colorectal cancer in the United States. As of 2024,
there were approximately 152,810 new cases with 53,010 deaths. It is the 3 rd leading cause of cancer death in women, and 2 nd
in men.

 Infectious
Diseases

and Mpox

 Smallpox is an acute contagious disease caused by the variola virus, or
VARV, which is a member of the orthopoxvirus family. Smallpox was declared eradicated in 1980 following a global immunization campaign.
Smallpox is transmitted from person to person by infective droplets during close contact with infected symptomatic people. Mpox is an
acute contagious disease caused by the monkeypox virus or MPXV, which is also a member of the orthopoxvirus family. Mpox symptoms are
similar to those of smallpox, although less severe. Mpox is emerging as an important zoonotic infection in humans in Central and West
Africa. Until 2022, only a few cases of mpox had been reported outside of Africa in patients who had been infected while in Africa. Starting
in May of 2022, mpox clade II cases spread rapidly in the U.S. and other countries. The Clade II mpox affects mostly men who have sex
with men in the U.S., where it has become endemic. In August 2024, the World Health Organization ("WHO") declared mpox Clade
Ib to be a public health emergency of international concern (PHEIC) due to an outbreak in the Democratic Republic of the
Congo that spread globally, including to the United States. Clade Ib affects children as well as adults. The WHO reaffirmed the PHEIC status of mpox clade Ib in February of 2025.

was eradicated by a World Health Organization program that vaccinated individuals with live replicating vaccinia vaccines wherever
smallpox appeared. In the 1970s, vaccination of civilians to protect against smallpox was discontinued in the U.S.; however, smallpox
remains a material threat to national security and a proportion of military personnel, including members of the Global Response
Force continue to be vaccinated. Vaccines for smallpox and mpox are stockpiled by the U.S. government in the strategic national
stockpile and for potential widespread immunization in the event of malicious reintroduction of VARV. The U.S. National Academy
of Sciences has recently issued a consensus report raising concerns about the state of new mpox vaccines in development.

 COVID-19

 SARS-CoV-2 is a contagious virus causing the disease COVID-19 that became
a global pandemic in 2019 and has resulted in more than three million deaths. While the infection and mortality rates have slowed in regions
of the world with high vaccination rates, the struggle with the pathogen is ongoing and evolving since SARS-CoV-2 is mutating into new
variants. COVID-19 is characterized by fever, sore throat, acute shortness of breath, cough, and oxygen desaturation in the blood. New
variants continue to sweep across the world in successive waves. With new variants of the virus emerging, therapeutic research is addressing
the challenge of keeping up with this rapidly mutating virus. The early vaccines have been effective in limiting the severity of disease
in vaccinated individuals. Vaccines that elicit strong T cell responses are believed to have the potential to provide long-term or durable
protection.

 Rare
Disease

 Prader-Willi
Syndrome

 PWS
is recognized as the most common genetic cause of life-threatening childhood obesity and affects males and females with equal
frequency and all races and ethnicities. The hallmarks of PWS are lack of suckling in infants and, in children and adults, severe
hyperphagia, an overriding physiological drive to eat, leading to severe obesity and other complications associated with significant
morbidity and mortality. PWS is an orphan disease that occurs in approximately one in 15,000 births. There is currently no approved
treatment for obesity and hyperphagia in adults and older children associated with PWS.

 Tonix's
Marketed Migraine Products

 Zembrace
SymTouch and Tosymra – Acute Migraine in Adults

 In June 2023, we acquired two FDA-approved, marketed products from Upsher-Smith: Zembrace SymTouch (sumatriptan injection) 3 mg and Tosymra (sumatriptan nasal spray) 10 mg. Zembrace SymTouch and Tosymra are both indicated
for the treatment of acute migraine with or without aura in adults.

 Zembrace
SymTouch is the only actively promoted brand of sumatriptan autoinjector in the United States. It has a unique low dose and has
demonstrated onset of migraine pain relief in as few as 10 minutes (17% of patients vs. 5% for placebo). Zembrace SymTouch also
demonstrated migraine pain freedom for 46% of patients (vs 27% for placebo) at 2 hours in a single-attack, double-blind study
(N=230). Zembrace SymTouch currently has patent protection to 2036. Tosymra employs Intravail permeation enhancer technology
and is pharmacokinetically equivalent to 4 mg subcutaneous sumatriptan. Tosymra delivers migraine pain relief in as little as
10 minutes with just one spray for some patients (13% vs. 5% for placebo). Tosymra currently has patent protection to 2031.

 Lead
Product Candidates

 We
believe that our product candidates offer innovative therapeutic approaches and may provide significant advantages relative to
available therapies. We have worldwide commercialization rights to all of our product candidates listed below. The following table
summarizes our later stage product candidates that are in or nearing the clinic:

 Product
 Candidate

 Indication

 Stage
 of Development

 SL

 Fibromyalgia

 NDA
 submitted and accepted by FDA for review; PDUFA goal date of August 15, 2025

 SL

 Acute
 Stress Reaction

 Phase
 2 ready* – investigator-initiated IND

 TNX-1300

 Cocaine
 Intoxication

 Mid-Phase 2

 TNX-1900

 Adolescent Obesity, Binge Eating Disorder, and Bone Health in Pediatric
Autism;

 Social Anxiety Disorder

 Phase 2 currently enrolling*

 Phase 2 clinical phase completed*

 Kidney
 Transplant Rejection

 Phase
 1 topline reported 1Q'25

 TNX-801

 and Mpox vaccine

 Preclinical,
 pre-IND

 TNX-1800

 COVID-19
 vaccine

 Preclinical,
 pre-IND

 TNX-2900

 Prader-Willi
 Syndrome

 Phase
 2 ready

 TNX-4200

 Treatment or Prevention of Viral Disease

 Preclinical,
 pre-IND

 TNX-1700

 Gastric and colorectal Cancer

 Preclinical,
 pre-IND

 *Investigator
Initiated Studies

SL

 Overview

 TNX-102 SL is a proprietary sublingual tablet formulation of cyclobenzaprine
("CBP") that efficiently delivers CBP across the oral mucosal membrane into the systemic circulation. We have active IND's
for TNX-102 SL as a bedtime treatment for fibromyalgia, PTSD, of multi-site pain associated with Long COVID, AAD and AUD. The University of North Carolina
has an investigator-initiated IND for ASD that references our INDs. We own all rights to TNX-102 SL in all geographies, and we bear no
obligations to third parties for any future development or commercialization. Excipients used in TNX-102 SL are approved for pharmaceutical
use. Some of the excipients were specially selected to promote a local oral environment that facilitates transmucosal absorption of CBP.

 The current TNX-102 SL sublingual tablets each contain 2.8 mg of CBP. We selected this
dose with the goal of providing a balance of efficacy, safety, and tolerability that would be acceptable as a first-line therapy and for
long-term use, and in-patient populations characterized by burdensome symptoms and sensitivity to medications.

 The
active ingredient in TNX-102 SL is CBP, a multi-functional drug that blocks the serotonin-2A, alpha-1 adrenergic, muscarinic M1
and histaminergic H1 receptors.

 CBP
is a tertiary amine tricyclic, that is the listed active ingredient of two products that are approved in the U.S. for the treatment
of muscle spasm: Flexeril (5 mg and 10 mg oral immediate-release, or IR, tablet) and Amrix (15 mg and 30
mg oral extended-release capsule or ER capsule). The Flexeril brand of CBP IR tablet has been discontinued since May 2013. There
are numerous generic versions of CBP IR tablets on the market. CBP-containing products are approved for short term use (two to
three weeks) only as an adjunct to rest and physical therapy for relief of muscle spasm associated with acute, painful musculoskeletal
conditions. CBP IR tablets are recommended for three times per day dosing, which results in relatively stable blood levels of
CBP after several days of treatment. Extended-release (ER) CBP capsules taken once a day mimic, and flatten, the pharmacokinetic
profile of three times per day CBP IR tablets.

 Both the IR and ER tablet formulations of CBP result in accumulation
of the persistent metabolite norcyclobenzaprine ("norCBP") to blood levels that exceed the levels of CBP. NorCBP is a secondary
amine tricyclic with a relatively stronger inhibitory activity of the norepinephrine transporter (NET) than the parent CBP. We believe
that the accumulation of norCBP is undesirable in a medicine to be taken chronically at bedtime because norCBP accumulates over weeks,
potentially interfering with the dynamic receptor effects of CBP and also may interrupt sleep quality by inhibiting the NET.

 We
designed TNX-102 SL to be administered once-daily at bedtime and with the intention for long-term use. We believe the selected
dose of TNX-102 SL and its unique pharmacokinetic profile will enable it to achieve a desirable balance of efficacy, safety, and
tolerability. Our Phase 1 pharmacokinetic comparative trials showed that, on a dose-adjusted basis, TNX-102 SL results in faster
systemic absorption and significantly higher plasma levels of CBP in the first hour following sublingual administration relative
to oral IR CBP tablets. It also showed that the sublingual route of administration, which bypasses the "first pass"
hepatic metabolism that swallowed medications undergo, results in a higher plasma level of CBP relative to norcyclobenzaprine
during sleeping hours when taken at bedtime. We believe the dynamic changes in CBP after TNX-102 SL administration at steady state
during chronic use contribute to its activity in treating fibromyalgia. We believe this is the first drug designed to
increase the activity of the tertiary amine tricyclic parent and decrease the activity of the secondary amine tricyclic metabolite.
In clinical studies, TNX-102 SL 2.8 mg and TNX-102 SL 5.6 mg were generally well-tolerated, with no drug-related serious and unexpected
adverse reactions reported in these studies. The most common adverse event was transient numbness in the mouth after TNX-102 SL
administration.

 In
September 2024, at the 11th Global Conference on Pharmaceutics and Novel Drug Delivery Systems (PDDS 2024), the Company announced
data highlighting the proprietary formulation technology and pharmacokinetic properties of TNX-102 SL, including composition and
methods patents based on the proprietary eutectic formulation of TNX-102 SL that are expected to provide market exclusivity until
at least 2034 in the U.S., EU, Japan, China and other jurisdictions. The eutectic protects cyclobenzaprine HCl from interacting
with the basifying agent that is also part of the formulation and required for efficient transmucosal absorption. The formulation
of TNX-102 SL was designed specifically for sublingual administration and transmucosal absorption for bedtime dosing to target
disturbed sleep, improve pain and other fibromyalgia symptoms, while reducing the risk of daytime somnolence.

 We have successfully completed the pivotal exposure bridging study
with TNX-102 SL compared to Amrix. Results from this study support the approval of TNX-102 SL under Section 505(b)(2) of the Federal
Food, Drug and Cosmetic Act ("FDCA") with Amrix as the listed drug. We believe that TNX-102 SL has the potential to provide clinical
benefit in fibromyalgia and PTSD and possibly other CNS indications that are underserved by currently marketed
products or have no approved treatment.

 We
have also successfully completed a bridging pharmacokinetic study in ethnic Japanese and Chinese volunteers that shows similar
characteristics to our historical data in Caucasian volunteers. We believe this will satisfy one of the criteria for approval
in Japan and China and will allow us to reference the U.S. efficacy data to support marketing applications in those countries.

 TNX-102 SL (cyclobenzaprine HCl sublingual tablets) – FM program

 We
are developing TNX-102 SL as a bedtime treatment for FM.

 Clinical
Development Plan

 NDA
Acceptance and PDUFA Goal Date

 In October 2024, Tonix submitted its NDA to the FDA for TNX-102 SL 5.6
mg for the management of fibromyalgia and in December 2024, the FDA assigned a PDUFA goal date of August 15, 2025, for a decision on marketing
authorization for TNX-102 SL. We are preparing for a commercial launch of TNX-102 SL in the fourth quarter of 2025, conditional on FDA
approval.

 Pre-NDA
Meetings and Fast Track Designation

 In July 2024, Tonix was granted Fast Track designation by the FDA for TNX-102
SL for FM. The designation validates that FM is a serious condition and that TNX-102 SL has the potential to address this unmet medical
need. Tonix previously announced alignment with the FDA regarding the content of its proposed NDA submission, following completion of
the Company's pre-NDA meetings.

 During the second quarter of 2024, Tonix successfully completed two positive
pre-NDA meetings with the FDA for TNX-102 SL for the management of fibromyalgia. The first, with minutes announced in June 2024, was a
Type B Chemistry, Manufacturing, and Controls (CMC) meeting to seek alignment and agreement with the FDA on key CMC topics to support
the planned NDA submission for TNX-102 SL. Based on formal meeting minutes, the Company believes it is aligned with the FDA on proposed
drug substance and drug product commercial specifications, shelf life assignment, manufacturing and commercial drug packaging. At the
second pre-NDA meeting announced in July 2024, the Company and the FDA aligned on nonclinical, clinical pharmacology and clinical matters
and agreed that the proposed data package is sufficient to support the NDA submission.

 Completed
Phase 3 RESILIENT Study (F307) with Statistically Significant Improvement in Primary Endpoint of Pain Reduction

 The
first patient was enrolled in the pivotal Phase 3 RESILIENT study in April 2022. The RESILIENT study was a double-blind, randomized,
placebo-controlled adaptive design trial designed to evaluate the efficacy and safety of TNX-102 SL in FM. The two-arm trial enrolled
457 participants in the U.S. The first two weeks of treatment consist of a run-in period in which participants start on TNX-102
SL 2.8 mg (1 tablet) or placebo. Thereafter, all participants increase their dose to TNX-102 SL 5.6 mg (2 x 2.8 mg tablets) or
two placebo tablets for the remaining 12 weeks. The RESILIENT study achieved statistical significance on the pre-specified primary
efficacy endpoint: change from baseline in the weekly average of daily diary pain severity numerical rating scale (NRS) scores
for TNX-102 SL 5.6 mg (LS mean [SE]: -1.8 [0.12] units) versus placebo (-1.2 [0.12] units), analyzed by mixed model repeated measures
with multiple imputation (LS mean [SE] difference: -0.7 [0.16] units, p=0.00005). In addition, all pre-specified sensitivity analyses
of the primary endpoint were statistically significant (p 0.001). We observed reduction in pain across all weeks of the 14-week
study, with nominal p<0.01 for every week. The rapid onset of action with separation from placebo at Week 1 was sustained throughout
all weeks of dosing. TNX-102 SL was well tolerated and consistent with prior trials, with no new safety signals observed. Among
participants randomized to the TNX-102 SL and placebo arms, 81.0% and 79.2%, respectively, completed the 14-week dosing period.
As expected, based on prior TNX-102 SL studies, administration site reactions were the most commonly reported adverse events and
were higher in the TNX-102 SL treatment group. Hypoaesthesia oral and paraesthesia oral, or tongue and mouth numbness or tingling,
product taste abnormal (typically a bitter aftertaste upon dosing), and tongue discomfort were local effects nearly always temporally
related to dose administration and transiently expressed (<60 minutes) in most occurrences. The only treatment-emergent adverse
events that occurred at a rate of 3.0% or greater in either arm were these four oral adverse events, along with COVID-19, somnolence,
and headache. Adverse events resulted in premature study discontinuation in 6.1% of those who received TNX-102 SL compared with
3.5% of placebo recipients. There were a total of seven serious adverse events in five patients, five of which were experienced
by three patients in the placebo arm, and two of which were in the TNX-102 SL arm. Of the two in the TNX-102 SL arm, one was renal
cancer, deemed unrelated to study drug, and the other was acute pancreatitis with onset 14 days after dosing was completed, reported
as possibly related to study drug, and was resolved before the final study visit.

 Completed
Phase 3 RALLY Study (F306)

 The RALLY study was a double-blind, randomized, placebo-controlled
adaptive design trial intended to evaluate the efficacy and safety of TNX-102 SL in FM. The trial was designed to enroll approximately
670 patients across approximately 40 U.S. sites. For the first two weeks of treatment, there was a run-in period in which patients started
on TNX-102 SL 2.8 mg (1 tablet) or placebo. After the first two weeks, all patients had the dose increased to TNX-102 SL 5.6 mg (2 x 2.8
mg tablets) or two placebo tablets for 12 weeks. The primary endpoint was daily diary pain severity score change from baseline to Week
14 (using the weekly averages of the daily numerical rating scale scores), analyzed by mixed model repeated measures with multiple imputation.
We reported pre-planned interim analysis results from a Phase 3 study, RALLY (F306), in July 2021. Based on the recommendation from the
independent data monitoring committee that the RALLY trial was unlikely to demonstrate a statistically significant improvement in the
primary endpoint, we stopped enrollment of new participants but allowed those participants who were already enrolled to complete the study.
We reported topline data from the completed study in March of 2022. As expected, based on interim analysis results, TNX-102 SL did not
achieve statistical significance over placebo on the primary endpoint of reduction in daily pain. Relative to the previous positive
Phase 3 Study (RELIEF), RALLY had an unexpected increase in study participant adverse event-related discontinuations in both drug and
placebo groups (~80% higher in each), which we believe may have been impacted by conducting the study in the period of highest mortality
across the U.S. from the COVID-19 pandemic (September 2020 through March 2021 for the interim analysis sample).

 Completed
Phase 3 RELIEF Study (F304) with Statistically Significant Improvement in Primary Endpoint of Pain Reduction

 In
the fourth quarter of 2020, we announced the results of a randomized, double-blind, placebo-controlled, 12-week Phase 3 study
of TNX-102 SL in 503 participants with FM, which we refer to as the RELIEF study. The primary objective of this study was to evaluate
the potential clinical benefit of using TNX-102 SL to treat FM at a dose of 5.6 mg, administered sublingually once daily at bedtime
for 12 weeks. The primary endpoint of the RELIEF trial was the daily diary pain severity score change from baseline to Week 14
(using the weekly averages of the daily numerical rating scale scores), analyzed by mixed model repeated measures with multiple
imputation. The RELIEF study achieved statistical significance on the primary efficacy endpoint: change from baseline in the weekly
average of daily diary pain severity numerical rating scale (NRS) scores for TNX-102 SL 5.6 mg (LS mean [SE]: -1.9 [0.12] units)
versus placebo (-1.5 [0.12] units), analyzed by mixed model repeated measures with multiple imputation (LS mean [SE] difference:
-0.4 [0.16] units, p=0.010).

 The statistically significant improvement in pain is further substantiated
when diary pain was analyzed by another standard statistical approach, a 30 percent responder analysis, with 46.8% on active and 34.9%
on placebo having a 30 percent or greater reduction in pain (logistic regression; odds ratio [95% CI]: 1.67 [1.16, 2.40]; p=0.006, uncorrected).
Consistent with the proposed mechanism that TNX-102 SL acts in fibromyalgia through improving sleep quality, TNX-102 SL showed nominal
improvement of sleep by several measures. For daily diary sleep quality ratings, TNX-102 SL (-2.0 [0.12] units) compared to placebo (-1.5
[0.12] units) was nominally significant (LS mean difference: -0.6 [0.17] units; p<0.001). For the PROMIS Sleep Disturbance instrument,
TNX-102 SL was also nominally significant over placebo on T-scores (LS mean difference: -2.9 [0.82] units; p<0.001). The effect sizes
on the diary sleep quality ratings and PROMIS Sleep Disturbance instrument were 0.31 and 0.32, respectively.

 In
the RELIEF study, TNX-102 SL was similarly well tolerated as in the prior Phase 2 BESTFIT and Phase 3 AFFIRM studies, which both studied
TNX-102 SL at a lower dose of 2.8 mg daily. There were no new safety signals observed in the RELIEF study at the 5.6 mg daily
dose. Among participants randomized to the TNX-102 SL and placebo arms, 82.3% and 83.5%, respectively, completed the 14-week dosing
period. As expected, based on prior studies, administration site reactions are the most commonly reported adverse events and were
higher in the TNX-102 SL treatment group, including rates of hypoaesthesia oral (17.3% vs. 0.8%), oral pain/discomfort (11.7%
v. 2.0%), product taste abnormal (6.5% vs. 0.4%), and paraesthesia oral (5.6% v. 0.4%). Hypoaesthesia or paraesthesia oral and
product taste abnormal were local administration site effects nearly always temporally related to dose administration and transiently
expressed (<60 minutes) in most occurrences. The only systemic treatment-emergent adverse events that occurred at a rate
of 5.0% or greater in either arm was somnolence/sedation at 5.6% in the TNX-102 SL arm vs. 1.2% in placebo, which was consistent
with known side effects of marketed oral cyclobenzaprine. Adverse events resulted in premature study discontinuation in 8.9% of
those who received TNX-102 SL compared with 3.9% of placebo recipients. There was a total of seven serious adverse events reported
during the study, none of which were deemed related to investigational product; five in placebo arm, and two in TNX-102 SL arm.
Of the two in the TNX-102 SL arm, one was a motor vehicle accident with multiple bone fractures, and the other was a case of pneumonia
secondary to an infection.

 Global NDA Requirements

 We are planning to develop TNX-102 SL for the treatment of FM in Japan.
Cyclobenzaprine, the active ingredient of TNX-102 SL, has not been approved in Japan, and is considered a new chemical entity (NCE). In
February 2022, we held an End of Phase 2 Consultation with the Pharmaceuticals and Medical Devices Agency, or PMDA, an independent administrative
institution responsible for ensuring the safety, efficacy and quality of pharmaceuticals and medical devices in Japan, to discuss the
Japan development plan. Agreement was reached on the design of a Phase 1 bridging study (TNX-CY-F108/F108) in ethnic Japanese healthy
volunteers to enable clinical studies of TNX-102 SL in Japan. PMDA also provided guidance on the overall nonclinical package to support
a Japan NDA filing for TNX-102 SL for the treatment of FM.

 The
F108 Phase 1 study was initiated in March 2022 and the clinical phase was completed in May 2022. Since the similarity in PK profile
between people of Japanese and Chinese descent was confirmed, the PK data from the two ethnic groups were pooled as for Asian
data (n=20) and compared retrospectively with the Caucasian study data from Study TNX-CY-F110 (n=16). The Asian/Caucasian geometric
mean ratios of cyclobenzaprine Cmax, AUC 0-T and AUC 0- were between 0.9 and 1.11 after both the 5.6
mg dose and the 2.8 mg dose. The 90% CI of Asian/Caucasian geometric mean ratios for Cmax, AUC 0-T and AUC 0-,
were all within the formal narrow equivalence limit of 0.8 to 1.25 after both the 5.6 mg dose and 2.8 mg dose, respectively. These
results support similarity in cyclobenzaprine PK between Asian (pooled Japanese and Chinese) and Caucasian samples.

 Long-Term
Safety Exposure Study for TNX-102 SL

 In October 2019, we completed long-term safety exposure studies in participants
with PTSD to evaluate the tolerability of TNX-102 SL 5.6 mg to support an NDA for the treatment of PTSD. The data provide us with
exposure data of daily dosing of TNX-102 SL 5.6 mg for at least 12 months in more than 50 individuals, and daily dosing of TNX-102 SL
5.6 mg for at least 6 months in more than 100 individuals. The data was collected in open-label extension studies of the PTSD program. Based on the
FDA's guidance, the long-term safety exposure studies in PTSD was used to support the NDA for the management of fibromyalgia.

 Manufacturing of
TNX-102 SL

SL drug product for Phase 3 and the associated registration batches for the NDA were manufactured at commercial cGMP facilities.
We currently have 36-month stability data in the proposed packaging configurations ready for commercialization. The FDA has reviewed
the proposed CMC data package to support TNX-102 SL's NDA approval and commercial manufacturing plans as part of the IND
process. Tonix is ready to manufacture TNX-102 SL commercial product for the forecasted fibromyalgia market. During the
second quarter of 2024, Tonix successfully completed a pre-NDA meeting with the FDA for TNX-102 SL for a Type B Chemistry, Manufacturing,
and Controls (CMC) meeting to seek alignment and agreement with the FDA on key CMC topics to support the planned NDA submission
for TNX-102 SL. Based on formal meeting minutes, the Company believes it is aligned with the FDA on proposed drug substance and
drug product commercial specifications, shelf life assignment, manufacturing and commercial drug packaging. In March 2024, Tonix
announced it selected two contract manufacturing organizations (CMOs), one of which is Almac Pharma Services, a member of the
privately owned Almac Group, as dual supply sources for the potential launch and commercialization of TNX-102 SL in the U.S.

SL – Acute Stress Disorder Program

SL is being developed as a bedtime treatment for ASR in collaboration with the University of North Carolina under an investigator-initiated
IND.

 Phase
2 OASIS Study

 This investigator-initiated study will be conducted by the University
of North Carolina Institute for Trauma Recovery. The University of North Carolina has been awarded a $3 million grant from the DoD to
investigate the potential of Tonix's TNX-102 SL to reduce the frequency and severity of adverse effects of acute trauma. The proposed
Optimizing Acute Stress reaction Interventions with TNX-102 SL (OASIS) trial will examine the safety and efficacy of TNX-102 SL to reduce
adverse posttraumatic neuropsychiatric sequelae among patients presenting to the emergency department ("ED") after a motor vehicle collision.
The trial will enroll approximately 180 individuals who acutely experienced trauma at ED study sites across the U.S. and participants
will be randomized in the ED to receive a two-week course of either TNX-102 SL or placebo. We expect enrollment in the OASIS study to
begin in the first half of 2025. The OASIS trial will examine the safety and efficacy of TNX-102 SL to reduce adverse posttraumatic neuropsychiatric
sequelae among patients in the ED after a motor vehicle collision. A fourteen day course of bedtime TNX-102 SL will be tested in the immediate
aftermath of motor vehicle collision trauma. The study will test the potential for TNX-102 SL to target trauma-related sleep disturbance
and its ability to facilitate recovery from ASR and to prevent PTSD. The results may ultimately provide military personnel with a new
treatment option that, when administered in the early aftermath of a traumatic event to individuals with ASR symptoms, improves warfighter
function.

 The
OASIS trial will build upon a foundation of knowledge and infrastructure developed through the University of North Carolina-led,
$40 million AURORA initiative. The AURORA study is a major national research initiative to improve the understanding, prevention,
and recovery of individuals who have experienced a traumatic event. AURORA is supported by funding from the NIH, leading brain
health nonprofit One Mind, private foundations, and partnerships with leading tech companies such as Mindstrong Health and Verily
Life Sciences, the health care arm of Google's parent company Alphabet.

 Initiation
of patient enrollment in the proposed investigator sponsored OASIS trial is anticipated in the first half of 2025. The FDA
granted IND clearance in the first quarter of 2024.

 In August 2024 at the DoD's MHSRS conference, the Company presented
clinical data and rationale supporting the potential for TNX-102 SL to be studied for the treatment of ASR and prevention of PTSD. Prior
studies showed that treatment with TNX-102 SL showed effects on sleep and PTSD symptoms in PTSD patients at two and four weeks. This supportive
data on the effects of TNX-102 SL on reducing PTSD symptoms suggest early intervention immediately after trauma using TNX-102 SL has the
potential to reduce ASR/ASD symptoms which are similar to those of PTSD. Data from these trials support testing of TNX-102 SL within 24
hours of index trauma for effects on ASR symptoms and the subsequent incidence of newly developed PTSD.

 TNX-1300
– Cocaine Intoxication

 TNX-1300
(T172R/G173Q double-mutant cocaine esterase 200 mg, i.v. solution) is being developed for the treatment of cocaine intoxication.
TNX-1300 is a recombinant protein enzyme produced through rDNA technology in a non-disease-producing strain of E. coli bacteria.
Cocaine Esterase (CocE) was identified in bacteria (Rhodococcus) that use cocaine as the sole source of carbon and nitrogen and
that grow in soil surrounding coca plants. The gene encoding CocE was identified and the protein was extensively characterized.
CocE catalyzes the breakdown of cocaine into metabolite ecgonine methyl ester and benzoic acid. Wild-type CocE is unstable at
body temperature, so targeted mutations were introduced in the CocE gene and resulted in the T172R/G173Q double-mutant CocE, which
is active for approximately 6 hours at body temperature.

 Currently
there is no specific pharmacotherapy indicated for cocaine intoxication, a state characterized by acute agitation, hyperthermia,
tachycardia, arrhythmias, and hypertension, with the potential life-threatening sequalae of myocardial infarction, cerebrovascular
accident, rhabdomyolysis, respiratory failure, and seizures. Patients are currently managed only by supportive care for the adverse
effects of cocaine overdose on the cardiovascular and central nervous systems. By targeting the cause of cocaine intoxication,
rather than the symptoms like other medicines in emergency usage, we believe TNX-1300 may offer significant advantages to the
current standard of care for cocaine overdose. TNX-1300 was developed by Columbia University, University of Kentucky and University
of Michigan, and in-licensed by Tonix from Columbia University in 2019.

 In
a Phase 2 randomized, double-blind, placebo-controlled clinical study, TNX-1300 at 100 mg or 200 mg i.v. doses was well
tolerated and interrupted cocaine effects after cocaine 50 mg i.v. challenge.

 In
August 2022, we announced that we received a Cooperative Agreement grant from NIDA, part of NIH, to support development of TNX-1300.
A positive Phase 2a study of volunteer cocaine users in a controlled laboratory setting has been previously completed. TNX-1300
has been granted Breakthrough Therapy designation by the FDA.

 As a biologic and new molecular entity, TNX-1300 is eligible for 12 years
of U.S. market exclusivity upon approval by the FDA, in addition to expected patent protection through 2029. Since in-licensing, Tonix
has requalified existing inventory, developed a lyophilized drug product to facilitate enhanced stability and handling conditions applicable
for an ER treatment, updated the process and analytical methods to current standards and manufactured Phase 2 drug product clinical supply.

 We initiated a Phase 2 clinical
trial, CATALYST, of TNX-1300 in the third quarter of 2024. The Phase 2 trial is a single-blind, placebo-controlled, proof-of-concept study
comparing the safety of a single 200 mg dose of TNX-1300 to standard of care alone in approximately 60 emergency department patients presenting
with cocaine intoxication. Because of the challenges of recruiting eligible patients into this study, we are not guiding to a timeline
for completion of enrollment or topline data.

 TNX-1900
–Adolescent Obesity, Binge Eating Disorder. Social Anxiety and Bone Health in Autism

 TNX-1900
(intranasal potentiated oxytocin) is a proprietary formulation of oxytocin primarily in development under investigator-initiated
INDs for the treatment of adolescent obesity, binge eating disorder, bone health in pediatric autism, and social anxiety disorder.
In 2020, TNX-1900 was acquired from Trigemina, Inc. and licensed from Stanford University. TNX-1900 is a drug-device combination
product, based on an intranasal actuator device that delivers oxytocin into the nose.

 Oxytocin
is a naturally occurring human hormone that acts as a neurotransmitter in the brain. Oxytocin has no recognized addiction potential.
It has been observed that low oxytocin levels in the body can lead to an increase in migraine headache frequency, and that increased
oxytocin levels can relieve migraine headaches. Certain other chronic pain conditions are also associated with decreased oxytocin
levels.

 With
TNX-1900, the addition of magnesium to the oxytocin formula enhances oxytocin receptor binding as well as its effects on trigeminal
neurons and craniofacial analgesic effects in animal models. Intranasal oxytocin has been well tolerated in several clinical trials
in both adults and children.

 There are three ongoing Phase 2 investigator-initiated studies enrolling
at MGH: the POWER study for the treatment of adolescent obesity, the STROBE study for the treatment of BED, and the BOX study for the
treatment of bone health in pediatric autism. In addition to the studies at MGH, University of Washington is conducting an investigator-initiated
study of TNX-1900 in SAD using functional MRI, in which the clinical phase has been completed, and data analyses are in progress.

– Organ Transplant Rejection/Autoimmune Conditions

is a humanized mAb directed against CD40-ligand, or CD40L (also known as CD154), engineered to modulate binding to Fc receptors,
that is being developed to prevent and treat organ transplant rejection as well as to treat autoimmune conditions. TNX-1500 incorporates
the antigen binding fragment (Fab) region of hu5c8, which has been extensively characterized including at the atomic level in
complex with CD40-ligand.

 CD40-ligand
is a protein expressed on the surface of activated T lymphocytes that mediates T cell helper function. CD40-ligand is also known
as CD154, the T cell-B cell activating molecule (T-BAM), TRAP and gp39. CD154 is a member of the Tumor Necrosis Factor (TNF) Super
Family. No mAb against CD154 has been approved for commercial use anywhere in the world. Other TNF Super Family members have been
successfully targeted by antagonist mAbs. Approved mAbs against TNF include: infliximab (Remicade), adalimumab (Humira),
certolizumab pegol (Cimzia), and golimumab (Simponi) for the treatment of certain autoimmune conditions. Also, etanercept
(Enbrel) is a TNF antagonist receptor fusion protein. An approved mAb against RANKL (CD254) is denosumab (Prolia
or Xgeva) for the treatment of osteoporosis, treatment-induced bone loss, metastases to bone, and giant cell tumor of bone.

was engineered to modulate binding to Fc receptors with the goal of maintaining the activity of first-generation monoclonal antibodies
(mAbs), yet with reduced risk of thrombotic complications. TNX-1500 is being developed as a prophylaxis against organ transplant
rejection as well as to treat autoimmune conditions. The IND was cleared for the prevention of kidney transplant, and a Phase
1 single ascending dose escalation study at 3 mg/kg, 10 mg/kg and 30 mg/kg of TNX-1500 in healthy volunteers was initiated in
the second quarter of 2023. The objectives of the Phase 1 trial were to assess the safety, tolerability, pharmacokinetics, and
pharmacodynamics of intravenous TNX-1500, as well as to support dosing in a planned Phase 2 trial in kidney transplant recipients.
We reported positive topline data related to the Phase 1 in February of 2025. TNX-1500 showed suppression of the primary
and secondary antibody responses to KLH antigen challenges for the 10 and 30 mg/kg doses. Additionally, preliminary pharmacokinetic
results showed mean half-life (t 1/2) for the 10 mg/kg and 30 mg/kg dose groups of 34-38 days, consistent with monthly
dosing. In healthy volunteers, TNX-1500 was generally well-tolerated with a favorable safety profile. Anti-CD40L has multiple
potential indications in addition to solid organ and bone marrow transplantation including autoimmune diseases: potential pipeline
in a product. Tonix plans to discuss these results with the FDA in an End-of-Phase 1 meeting. Pending alignment with the FDA,
a Phase 2 study of TNX-1500 in kidney transplant recipients will be pursued.

 TNX-1500 has also been studied in combination with other immunosuppressive
agents in allogeneic transplants in non-human primates at MGH. In experiments at MGH, TNX-1500 is being studied as monotherapy or in combination
with other immunosuppressive agents in heart and kidney allogeneic organ transplants in non-human primates. Results from experiments in
kidney and heart transplants indicate that TNX-1500 appears to have comparable efficacy to historical experiments using the chimeric mouse/human
IgG1 version (5c8H1) of the anti-CD40L mAb 5c8. Some results from this collaboration were published in the peer-reviewed journal, American
Journal of Transplantation in 2023. In June 2024, at the American Transplant Congress 2024, Tonix announced data demonstrating
the combined use of TNX-1500 and anti-CD28 monoclonal antibody, VEL-101 is associated with durable protection and graft survival and function
in a nonhuman primate model. Further data demonstrated that TNX-1500 has promise to prevent rejection of 9-, or 10-gene-edited (GE) pig
hearts. All research has been directed by the faculty of the Center for Transplantation Sciences at Massachusetts General Hospital.

also is being studied in combination with other immunosuppressive agents in xenogeneic organ transplants in non-human primates
at MGH. In some of these studies, genetically engineered ("GE") pigs in baboon transplants were treated with cold
perfused ischemia minimization and a novel costimulation-based immunosuppressive regimen including TNX-1500. The results of these
preclinical studies were encouraging and demonstrated the potential of genetically engineered pig hearts in the context of a clinically
applicable regimen. The multi-GE pigs were provided by eGenesis and Revivicor. Revivicor is a subsidiary of United Therapeutics.
Some results from the collaboration with MGH and eGenesis were published in the peer-reviewed journal, Nature in 2023. In
March of 2024, MGH announced the first GE pig kidney transplant into a living recipient supported in part by the pre-clinical
work with TNX-1500. TNX-1500 therapy was not used in the human transplant recipient.

 In pre-clinical experiments at MGH, TNX-1500 is being studied as monotherapy
or in combination with immunosuppressive drugs in heart and kidney organ transplants in animals. The data demonstrates that TNX-1500 showed
activity in preventing organ rejection and was well tolerated in animals. Blockade of CD40L with TNX-1500 monotherapy consistently prevented
pathologic alloimmunity in animal models of cardiac and kidney allograft model without evidence of clinical thrombosis.

 In
January 2021, the World Intellectual Property Organization published a patent application filed under the Patent Cooperation Treaty
covering TNX-1500, a humanized mAb directed against CD40-ligand, which is also known as CD154. The patent application is titled
"Anti-CD154 Antibodies and Uses Thereof" and published under International Publication No. WO 2021/001458 A1. The
application entered national phase in December 2021. The patent applications include claims related to proprietary anti-human
CD40-ligand mAbs that were engineered to have modified effector function, including TNX-1500, which have reduced potential for
Fc binding to Fc RII. The patent applications also claim uses of TNX-1500 for preventing and treating conditions, such as
organ transplant rejection and autoimmune disorders. If claims are granted, a patent issuing from a national stage of this application
could potentially provide U.S. patent coverage for the TNX-1500 composition of matter through 2040 excluding possible patent term
extensions or patent term adjustments. We also have filed a PCT patent application, PCT/US2022/011404, in January 2022, entitled
"Methods of Inducing Immune Tolerance with Modified Anti-CD154 Antibodies." It claims methods of inducing immune tolerance
in transplant recipients using anti-CD154 antibodies having modified effector functions.

 Remicade
and Simponi are trademarks of Janssen; Humira is a trademark of AbbVie Inc.; Cimzia is a trademark of UCB S. A.;
Enbrel, Prolia and Xgeva are trademarks of Amgen Inc.

 TNX-1700 — Gastric and Colorectal Cancers

 TNX-1700 is a recombinant Trefoil Family Factor 2 (hTFF2-HSA) fusion protein
in development to treat gastric and colorectal cancers. We have licensed rights from The Trustees of Columbia University in the City of
New York to develop a potential product, TNX-1700, for the treatment of gastric and colorectal cancers. The licensed patents are directed
to TFF2 compositions and methods of treatment. The licensed patents U.S. Patent No. 10,124,037 and U.S. Patent No. 11,167,010. The licensed
patents provide TNX-1700 with US market exclusivity until April 2033, subject to any patent term extensions. On August 27, 2020, we filed
International Patent Application No. PCT/IB2020/000699 entitled "Modified TFF2 Polypeptides." The PCT application is now nationalized
in 12 countries.

 Preclinical data has shown that mTFF2-CTP augmented the efficacy of mAb
anti-PD-1 therapy. Anti-PD-1 in combination with mTFF2-CTP showed greater anti-tumor activity in PD-L1-overexpressing mice. The mechanism
of action is to suppress myeloid-derived suppressor cells and activate anti-cancer CD8+ T cells, which is different from checkpoint inhibitors.
There is potential synergy with anti-PD-1 or anti-PD-L1 mAbs.

 TNX-801 –Smallpox and Mpox Vaccine

 TNX-801
is a novel potential smallpox- and mpox-preventing vaccine based on a synthetic version of live horsepox virus, grown in cell
culture. Though it shares structural characteristics with vaccinia-based vaccines, TNX-801 has unique properties that we believe
indicate potential safety advantages over existing live replicating vaccinia virus vaccines, which have been associated with adverse
side effects such as myopericarditis in some individuals. Emergent BioSolutions' ACAM2000 is the only replicating
vaccinia virus vaccine currently approved by the FDA to protect against smallpox and mpox. We believe replicating virus vaccines have potential
efficacy advantages over non-replicating vaccines, relating to the stimulation of cell mediated immunity. Bavarian Nordic's
Jynneos, the only non-replicating virus vaccine, is currently approved by the FDA to protect against smallpox and mpox. Jynneos
requires two-doses, with an efficacy of approximately 35% after one dose. During the most recent mpox outbreak in the United States,
dropout between doses was 24%. We believe TNX-801 has the potential to have improved tolerability relative to replicating vaccinia
vaccines and the potential to have improved efficacy relative to non-replicating vaccinia vaccines. We also believe that TNX-801
would require only one dose.

was eradicated by a World Health Organization program that vaccinated individuals with live replicating vaccinia vaccines wherever
smallpox appeared. In the 1970s, vaccination of civilians to protect against smallpox was discontinued in the U.S.; however, smallpox
remains a material threat to national security and a proportion of military personnel, including members of the Global Response
Force, continue to be vaccinated. The Bipartisan Commission on Biodefense (2024) noted that "Smallpox and other orthopoxviruses
pose significant threats to the United States and the world due to their potential for weaponization, accidental release, and
vulnerability of populations who stopped routinely vaccinating against smallpox in the 1970s" (Bipartisan Commission on
Biodefense).

 We
are developing TNX-801 as a potential smallpox- and mpox-preventing vaccine for the U.S. strategic national stockpile and for
potential widespread immunization in the event of malicious reintroduction of variola, the virus that causes smallpox.

 Mpox has become endemic in the U.S. since it spread in the U.S. and
other countries outside of Africa, mostly in populations of gay men. In August 2024, the WHO determined that the upsurge of mpox in a
growing number of countries in Africa constitutes a public health emergency of international concern (PHEIC), the second such declaration
in the past two years in response to transmission of the virus. Mpox cases of the new clade Ib mpox have since also been detected in multiple
countries outside of Africa, including the U.S.. Animals vaccinated with TNX-801 were protected from mpox in studies reported in the first
quarter of 2020. These data were published in the peer-reviewed journal Vaccines in 2023.

 In November 2024, Tonix announced that it has entered into a sponsored
research agreement with the Kenya Medical Research Institute (KEMRI) to design, plan and seek regulatory approval for a Phase 1 clinical
study in Kenya to test the safety, tolerability, and immunogenicity of TNX-801 as a vaccine to prevent mpox and smallpox. Tonix will be
the sponsor and KEMRI will lead the execution of the proposed clinical trial.

 In September 2024, at the DoD's MHSRS conference and in October 2024
at the World Vaccine Congress in Barcelona, Spain, Tonix presented new data on potential mpox vaccine, TNX-801, demonstrating tolerability
and no evidence of spreading to blood or tissues, even at high doses, in immunocompromised animals. After a single-dose vaccination, TNX-801
prevented clinical disease and lesions, and also decreased shedding in the mouth and lungs of animals after a lethal challenge
with clade Ia monkeypox. These findings are consistent with TNX-801 inducing mucosal immunity and suggest TNX-801 has the ability to block
forward transmission. In September 2024, the Company also announced that the WHO's preferred TPP aligns with the characteristics
of TNX-801. Key elements of the WHO draft TPP include single-dose, durable protection, administration without special equipment, and stability
at ambient temperature. Other potential beneficial characteristics include the ability to limit forward transmission, use in case-contact
vaccination strategies and suitability for use in immunocompromised individuals.

 In August 2024, Tonix and Bilthoven Biologicals, part of the world's
largest vaccine manufacturer the Cyrus Poonawalla Group, which includes the Serum Institute of India, announced a collaboration to advance
TNX-801.

 In October 2023, at the World Vaccine Congress - Europe, we reported that
the TNX-801 vaccine was shown to be greater than 10 to 1,000-fold more minimally replicative than older vaccinia-based smallpox vaccines
in both human primary cell lines and immunocompromised mice. Similar data was also published in the peer-reviewed journal mSphere
which presented data demonstrating that TNX-801 is less virulent than 20th Century vaccinia vaccines in immune-compromised mice.

 In
August 2023 we received pre-IND meeting written responses from the FDA. Tonix believes the
FDA feedback provides a path to agreement on the design of a Phase 1/2 study and the overall clinical development plan. The Phase
1/2 clinical trial will assess the safety, tolerability, and immunogenicity of TNX-801, following the submission and clearance
of an IND. We are actively working to develop a vaccine meeting cGMP quality to support a clinical study.

 In
January 2020 at the American Society of Microbiology Biothreats conference, we reported the results of experiments on TNX-801
that were performed in collaboration with Southern Research, that showed TNX-801 vaccinated macaques were protected against monkeypox
challenge. The TNX-801 vaccinated macaques showed no overt clinical signs after monkeypox challenge. Furthermore, eight of eight
animals vaccinated with two different doses of TNX-801 showed no lesions after monkeypox challenge. These results were published
in the peer-reviewed journal Viruses in 2023.

 We
hold a U.S. Patent for TNX-801 smallpox and mpox vaccine and Recombinant Pox Virus (RPV) platform technology. This patent is expected
to provide Tonix with U.S. market exclusivity until 2037, excluding any possible patent term extensions or patent term adjustments.
In addition, we expect that TNX-801 will be eligible for 12 years of non-patent-based exclusivity under the Patient Protection
and Affordable Care Act, or PPACA.

 TNX-801
also serves as the live virus vaccine platform for other infectious diseases for which subsequent products will be designed by
expressing other viral antigens in the horsepox vector. The company's Good Manufacturing Practice (GMP)-capable advanced
manufacturing facility in Dartmouth, MA was purpose-built to manufacture TNX-801 and the GMP suites are ready to be reactivated
in case of a national or international emergency.

 TNX-1800 – COVID-19 Vaccine

 TNX-1800 is a minimally replicative, live virus vaccine based on our RPV
platform that expresses the SARS-CoV-2 spike protein from the ancestral Wuhan strain. TNX-1800 is being further developed to rapidly address
new variants as they emerge. The vaccine platform itself can carry a payload of genes. The vaccine protects against COVID-19 by eliciting
a durable T cell, humoral and mucosal immune response. It is delivered in only one dose. In November 2023, Tonix announced that the NIAID,
a part of the NIH, will conduct a Phase 1 clinical trial with TNX-1800 as part of the Project NextGen Covid-19 Vaccine initiative. This
NIAID/NIH program is funded to take selected NextGen vaccine candidates into Phase 1 and Phase 2 trials. Because of extensive reviews
of NIH programs, the future of this program is uncertain.

 The
COVID-19 vaccines that are approved for use in the U.S. have provided significant health benefits to the vaccinated population;
however, they have shown limitations in the durability of protection conferred and in their limited ability to block the spread
of infection (forward transmission). Live virus vaccines that protect against other viral diseases by eliciting T cell responses
have shown durability of protection that lasts years to decades and some live virus vaccines have significantly inhibited forward
transmission (e.g. smallpox). The TNX-1800 vaccine development plan is wholly consistent with priority vaccine attributes advanced
by the White House Office of Science and Technology Policy's Pandemic Preparedness Plan from September
2021, the National Biodefense Science Board report from August 2023, and the BARDA Strategic Plan 2022-2026. Tonix believes its
RPV platform can address a wide variety of disease targets of public health interest.

 The results of an animal study data showing the protective effect of TNX-1800
vaccine was published in the peer-reviewed journal Vaccines in 2023 and show that TNX-1800 induces complete protection against
SARS-CoV-2 infection as well as evidence that indicates an impact on spread of infection. These data also confirm that "take"
is a biomarker of protection of upper and lower airways from SARS-CoV-2 challenge, and a biomarker of immunological response to TNX-1800's
cargo COVID-19 antigen, which is the CoV-2 spike protein. Tonix has also began undertaking studies to show attenuation of the RPV platform
itself in order to evaluate the potential use of the live vaccine platform in the immunocompromised host by the use of mouse model system.
These data (detailed below) demonstrate that the RPV vaccine platform that is used for TNX-1800 is >10- to 1,000-fold more minimally
replicative than older VACV-based smallpox vaccines in human primary cell lines and immunocompromised mice.

 We
received pre-IND meeting written responses from the FDA in 2021 regarding our investigational plan to establish the safety and
effectiveness evidence in support of the licensure of TNX-1800. We believe that the FDA feedback provides a clear pathway forward
towards utilizing its underlying RPV platform for a COVID-19 vaccine.

 We
announced the issuance of U.S. Patent for TNX-801 smallpox and mpox vaccine and RPV platform technology. This patent is expected
to provide Tonix with U.S. market exclusivity until 2037, excluding any possible patent term extensions or patent term adjustments,
and also expect 12 years of non-patent-based exclusivity under PPACA.

 At
the World Vaccine Congress in October 2023, Tonix presented its positive, published non-human primate data for the TNX-1800 (spike
from Wuhan strain) from animal challenge studies using live SARS-CoV- 2. In this study TNX-1800 vaccinated, SARS-CoV-2 challenged
animals had undetectable SARS-CoV-2 in the upper airways, which we believe relates to potential inhibition of forward transmission
of this respiratory pathogen. Further, as an expected additional outcome, all 16 animals vaccinated with either dose of TNX-1800
or the control TNX-801 manifested a "take", or cutaneous response, signaling that the horsepox vector elicits a strong
T cell immune response. These results support the expectation that TNX-1800 at the low dose of 1 x 10 6 PFU is an appropriate
dose for a one-dose vaccine in humans. These data were published in the peer-reviewed journal Vaccines in 2023.

 Additional studies have been undertaken to show attenuation of the RPV
platform alone (TNX-801) in order to evaluate the potential use of this live vaccine in the immunocompromised host. These data demonstrate
that the RPV platform used with TNX-1800 is >10- to 1,000-fold more minimally replicative than older VACV-based smallpox vaccines in
human primary cell lines and immunocompromised mice.

 TNX-4200
– Broad-Spectrum Antiviral

 Tonix is developing CD45-targeted therapeutics (TNX-4200). In July 2024
Tonix was awarded a contract with a potential for up to $34 million over five years by DTRA. The objective of the contract is to develop
small molecule broad-spectrum antiviral agents for the prevention or treatment of infections to improve the medical readiness of military
personnel in biological threat environments.

 Tonix's program will focus on optimization and development of its
TNX-4200 program, to develop an orally available CD45 antagonist, with broad-spectrum efficacy against a range of viral families through
preclinical evaluation. The program is expected to establish physicochemical properties, pharmacokinetics, and safety attributes to support
an IND submission and to fund a first-in-human Phase 1 clinical study. Tonix plans to leverage previous research on phosphatase inhibitors,
specifically compounds that target CD45, to optimize lead compounds for therapeutic intervention of biothreat agents and provide the government
with a complete and cost-effective solution for a broad-spectrum medical countermeasure. Tonix's hypothesis is that partial inhibition
of CD45 will provide optimal antiviral protection while requiring lower plasma drug concentrations, a lower dose, and a better safety
profile.

 TNX-2900
– Prader-Willi Syndrome (PWS)

 TNX-2900 is based on our patented intranasal potentiated oxytocin formulation,
or TNX-1900, but being developed for PWS. Tonix licensed technology using oxytocin-based therapeutics for the treatment of PWS and non-organic
failure to thrive disease from Inserm. The licensing agreement has been negotiated and signed by Inserm Transfert, the private subsidiary
of Inserm, on behalf of Inserm, Aix-Marseille Universit and Centre Hospitalier Universitaire of Toulouse. PWS is recognized as
the most common genetic cause of life-threatening childhood obesity and affects males and females with equal frequency and all races and
ethnicities. There is currently no approved treatment for either the suckling deficit in infants or the obesity and hyperphagia in older
children associated with PWS. Since PWS is an orphan disease that occurs in approximately one in 15,000 births, TNX-2900 for PWS has been
granted Orphan Drug Designation and Rare Pediatric Disease Designation by the FDA. Tonix completed a pre-IND meeting with the FDA in November
2022 to discuss the most efficient and appropriate investigational plan to establish the safety and effectiveness evidence to support
the approval of TNX-2900, and Tonix has received IND clearance.

 In
2022, Tonix entered into a research collaboration with Inserm involving in vitro and in vivo animal studies designed
to validate and characterize the role of oxytocin in suckling and in the maturation of feeding behavior during infancy in order
to support an intranasal therapeutic approach to restore a normal nutritive suckling. The studies will include mice that have
been engineered to precisely recapitulate the genetic issue underlying PWS in humans.

 The
mechanisms involved in suckling activity required for normal feeding and the role of oxytocin system in this process will be investigated.
The results of this work are expected to be useful in the clinical care of infants requiring support to achieve efficient suckling
behavior. Intranasal oxytocin has previously been shown to improve suckling in newborn animals and suppress feeding behaviors
in adult animal models.

 Tonix's
Facilities Overview

 The
Research & Development Center (RDC)

 We
own the approximately 48,000 square foot RDC facility in Frederick, Maryland. The RDC facility is operational and focuses on our
development of vaccines and antiviral drugs against COVID-19, its variants, and other infectious diseases. The RDC is the principal site for the research on TNX-4200, a broad-spectrum
antiviral targeting CD45 funded by the U.S. Department of Defense, Defense Threat Agency contract. The RDC also conducts
research on CNS and immunology drugs. The RDC facility is biosafety level 2 (BSL-2) with BSL-3 components.

 The
Advanced Development Center (ADC)

 The ADC located in the New Bedford business park in Dartmouth, Massachusetts
is intended to accelerate development, clinical and commercial scale manufacturing of live-virus vaccines and biologics. ADC includes
single-use bioreactors and purification suites with equipment for Good Manufacturing Practice (GMP) production of vaccines and biologics
for clinical trials, including the capability of producing sterile vaccines in glass vials.

 The
ADC is an approximately 45,000 square foot BSL-2 facility which can employ up to 70 researchers, scientists, manufacturing, and
technical support staff. This facility was decommissioned in May 2024 but Tonix has the ability to reactivate it should we choose
to do so.

 Marketing,
Sales and Distribution

 Marketing
activity for Zembrace Symtouch and Tosymra in the United States is conducted by our wholly-owned subsidiary, Tonix Medicines,
Inc. We focus our sales and marketing efforts on physicians in private practice and in public treatment systems. We employ standard
pharmaceutical marketing practices to promote our products, encompassing advertisements, professional symposia, sales initiatives,
and educational outreach aimed at physicians, nurses, social workers, counselors, and other stakeholders involved in treating
acute migraine in adults. We have established contracts with third-party vendors to handle logistics, offer customer services,
and manage other related aspects for our products. These services include managing product-specific websites, conducting insurance
research, processing orders, and handling delivery and fulfillment services. Zembrace Symtouch and Tosymra are primarily sold
to pharmaceutical wholesalers, pharmacies, and specialty distributors. We intend to implement patient access programs and expand
distribution channels in our marketing efforts for our migraine drugs.

 In 2024, Tonix engaged EVERSANA to support the launch strategy and commercial
planning of TNX-102 SL for the management of fibromyalgia. Specifically, EVERSANA worked with Tonix to assess the fibromyalgia landscape
and help plan an efficient go-to-market strategy.

 In 2024, Tonix hired a new head of Commercial Operations as well as Vice
Presidents to run Medical Affairs and Marketing, each with decades of experience successfully launching and commercializing new CNS products.
In January 2025, Tonix announced the appointment of a vice president to oversee Market Access. In 2025, we will continue to build out
our commercial team and capabilities as we look forward to a targeted launch of TNX-102 SL in the fourth quarter of 2025, contingent on
FDA approval.

 Competition

 Our
sector faces intense competition and experiences rapid, substantial technological advancements both domestically and internationally.
Our potential competitors encompass major pharmaceutical and biotechnology firms, specialty pharmaceutical and generic drug manufacturers,
academic institutions, government agencies, and research organizations. We consider efficacy, safety, tolerability, reliability,
pricing, and reimbursement levels as crucial competitive factors influencing the development and commercial success of our product
candidates. Numerous potential competitors, including some of the organizations listed below, possess considerably larger financial,
technical, and human resources, as well as extensive experience in discovering and developing product candidates, securing FDA
and other regulatory approvals, and commercializing those products, far surpassing our own capabilities. Hence, our competitors
might achieve greater success in securing FDA approval for drugs and gaining widespread market acceptance compared to us. The
drugs offered by our competitors may prove to be more effective or better marketed and sold than any product we bring to market,
potentially rendering our product candidates obsolete or non-competitive before we can recoup the expenses incurred in their development
and commercialization. We expect to encounter heightened competition as the market sees the introduction of new drugs and the
emergence of advanced technologies. Additionally, the evolution of novel treatment approaches for the conditions we are focusing
on may potentially diminish the competitiveness or relevance of our drugs. Below, we provide an overview of the competitive landscape
for the indications where Tonix has product candidates either in or nearing the clinical stages of development.

 Migraine

 Zembrace Symtouch and Tosymra are indicated for the treatment of acute
migraine and compete with generic versions of sumatriptan. Zembrace is an autoinjector formulation of sumatriptan and competes with generic
subcutaneous products. Tosymra is an intranasal formulation of sumatriptan and competes with generic intranasal products. Zembrace and
Tosymra also compete with the new molecular entities including oral migraine therapies such as Nurtec (Rimegepant) from Pfizer Inc.
and Ubrelvy (Ubrogepant) and QULIPTA (atogepant) from AbbVie Inc. and intranasal migraine therapies such as Zavzpret
(vazegepant) by Pfizer, Inc. Most recently, Axsome Therapeutics announced FDA approval of SYMBRAVO (meloxicam and rizatriptan) for
the acute treatment of migraine with or without aura in adults. We also note that the PDUFA goal date for Shin Nippon Biomedical Laboratories,
Ltd and Satsuma Pharmaceuticals is April 30, 2025 for their intranasal asset STS101 (dihydroergotamine) for the treatment of migraine
headaches.

 Fibromyalgia

 We are currently awaiting an FDA decision on marketing authorization for
TNX-102 SL for the management of fibromyalgia. There are 3 products approved for the treatment of fibromyalgia which include Lyrica
(pregabalin), developed by Pfizer, Inc., Cymbalta (duloxetine), developed by Eli Lilly and Company, and Savella (milnacipran)
marketed by AbbVie. Pregabalin and duloxetine are available as generics, while Savella is still on patent. There has not been a new product
approved for this indication in 15 years.

 Tonix is aware of multiple companies actively developing treatments
for fibromyalgia. Axsome Therapeutics Inc. expects to submit an NDA for AXS-14 (esreboxetine) for the management of fibromyalgia to the
FDA for AXS-14 in Q1 2025. Virios Therapeutics, Inc. announced the initiation of a Phase 3 trial in the U.S. for IMC-1 for the treatment
of fibromyalgia. IMC-1 is a fixed dose combination of famciclovir + celecoxib, is a 505(b)(2) and has been granted Fast Track Designation
by the FDA. Tonix is also focused on developments for fibromyalgia outside of the U.S. and keeps abreast of the progress made by Australian
company Tryptamine Therapeutics Ltd who announced positive data from a Phase IIa clinical trial of TRP-8802 for fibromyalgia which
was presented in an abstract at the International Association for the Study of Pain (IASP) 2024 World Congress on August 9, 2024.

 Long
COVID (Post-Acute Sequelae of SARS-CoV-2 Infection or PASC)

 As of now, there are no specific drugs approved by the FDA solely for
the treatment of Long COVID (formerly known as Post-Acute Sequelae of SARS-CoV-2 Infection (PASC)). Tonix is aware of several companies
developing therapeutics for the treatment of Long COVID including, but not limited to, Direct Biologics, LLC (Phase III for DB-001 was
completed in the fourth quarter of 2024 and American CryoStem Corporation. Other developments include Organicell Regenerative Medicine,
Inc. is conducting a Phase 2 for Zofin as a potential therapeutic for Long COVID. PaxMedica, Inc. is developing PAX-101 for the treatment
of Long COVID and currently conducting a Phase1b in South Africa. In October 2024, Resolve Therapeutics, LLC, announced the results from
its Phase II Long COVID study of RSLV-132. Furthermore, GeNeuro announced the data from Phase II GNC-501 clinical trial in patients
suffering from Long COVID, testing temelimab against placebo. Finally, in June 2024, Berlin Cures Holding AG announced that it is preparing
for a Phase III study in Long COVID and Statera BioPharma, Inc. is comparing STAT-205 with placebo for reducing fatigue in Long
COVID.

 Acute
Stress Reaction/Acute Stress Disorder (ASR/ASD)

 There are no approved drugs for treating ASR or for the prevention
of ASD or PTSD. In October 2024, BioXcel Therapeutics announced a Phase IIa efficacy and safety trial of BXCL501 in patients experiencing
ASD resulting from motor vehicle collisions to begin in the first half of 2025. BXCL501 is an orally dissolvable film formulation
of the 2A adrenergic receptor agonist dexmedetomidine that is FDA approved as IGALMI for the acute treatment of agitation
associated with schizophrenia or bipolar I or II disorder in adults.

 Cocaine
Intoxication

 There are no approved antidotes for the treatment of cocaine intoxication.
Patients generally receive supportive care. We are not aware of any drugs in development for the treatment of cocaine intoxication. We
are aware of companies that are targeting cocaine use disorder and we monitor their progress. Embera NeuroTherapeutics currently lists
EMB-001 in Phase II development for the treatment of cocaine use disorder in its pipeline.

 Transplantation Rejection and Autoimmune Treatments with Anti-CD40-ligand
Monoclonal Antibodies

 We are aware of multiple
companies advancing the development of biologics targeting the CD40L molecule including Sanofi, UCB, Eledon Pharmaceuticals, and Amgen
Inc. Eledon Pharmaceuticals revealed promising results from the Phase I/II trial of tegoprubart, aimed at preventing islet transplant
rejection in individuals with type 1 diabetes. The trial showed that the first human cases of insulin independence were achieved using
an anti-CD40L monoclonal antibody therapy, without relying on tacrolimus, the current standard treatment for preventing transplant rejection.
Sanofi's SAR441344 (Frexalimab), a second-generation anti-CD40L monoclonal antibody, is being tested in multiple sclerosis. In
a Phase II trial involving participants with relapsing multiple sclerosis (NCT04879628), frexalimab demonstrated effectiveness in quickly
reducing the number of new gadolinium-enhancing T1-lesions at week 12. Amgen Inc. is currently conducting a Phase III trial to test Dazodalibep for Sjogren's
Syndrome (NCT06104124) with an estimated completion date for the first half of 2026. H. Lundbeck is testing Lu AG22515 for Thyroid Eye
Disease (TED) and plans to report results from the Phase Ib TED study in the second half of 2026. In 2024, UCB and Biogen announced positive
results from a Phase III trial testing Dapirolizumab Pegol for Systemic Lupus Erythematosus. In November 2024, UCB and Biogen
announced the initiation of their potentially confirmatory Phase III trial to test Dapirolizumab Pegol for Systemic Lupus Erythematosus
(NCT06617325). These are a few key highlights that underscore the focus of major pharmaceutical companies in this area and we monitor
the activity of other companies in the process of developing antagonistic anti-CD40 mAbs, including Novartis, Boehringer Ingelheim GmbH,
Kiniska Pharmaceuticals, Boston Immune Therapies, and NapaJen Pharma Inc.

 Prader Willi Syndrome

 Somatropin, which targets
the Growth Hormone Receptor is approved in the U.S. and marketed by Pfizer Inc. and Novo Nordisk. Novartis AG markets Omnitrope in
Europe. There are no approved products for the treatment of hyperphagia or over-eating in PWS. Patients generally receive care to best
manage individual symptom presentation. ACADIA Pharmaceuticals Inc. currently have ACP-101 (intranasal carbetocin) (acquired Levo Therapeutics
in June 2022) in a Phase 3, randomized, double-blind, placebo-controlled, 8-week clinical study to assess the efficacy, safety, and tolerability,
of ACP-101 in PWS with long term follow-up. Acadia anticipates the enrollment of the final patient in by the fourth quarter of 2025, with
top-line results expected to be announced in the first half of 2026. Soleno is developing diazoxide chloride controlled release (DCCR)
which had positive results in a randomized withdrawal study of PWS. The PDUFA goal date for a decision on marketing authorization is in
March 2025.

 Carmot Therapeutics Inc.
announced that they plan to release Phase I single ascending dose (SAD)/MAD data for CT-PYY in 2025 for the treatment of PWS. Harmony
Biosciences Holdings, Inc. received Orphan Drug Designation for their asset Wakix (pitolisant hydrochloride) for the treatment of PWS.
Harmony Biosciences announced initial topline results from its Phase II proof-of-concept study in patients with PWS, which showed a signal
on improvement in the primary outcome related to excessive daytime sleepiness in November 2022. At the end of 2024, Neuren Pharmaceuticals
Limited announced the suspension of its Phase II open-label study of the safety, tolerability, and pharmacokinetics of oral NNZ-2591
in Prader-Willi syndrome (PWS-001) due to a revised development strategy.

 Tonix
is knowledgeable about several companies dedicated to developing a therapy for the treatment of PWS including, but not limited
to, Aardvark Therapeutics, ConSynance Therapeutics, Lipidio Pharma, Helsinn, Inversago Pharma, Saniona, 9 Meters Biopharma, Neuracle
Science, Harmony Biosciences Holding Inc., and Notitia Biotechnologies.

 Gastric and Colorectal Cancer

 TNX-1700 asset is a recombinant TFF2 (albumin fusion peptide) and has
demonstrated that by targeting myeloid derived suppressor cells (MDSCs) using TFF2-MSA fusion protein synergizes well with PD-1 blockade
therapy in advanced and metastatic syngeneic mouse models of colorectal cancer. Tonix is aware of several companies that are focused on
MDSCs to treat Gastric and Colorectal Cancer. Anbogen announced a drug supply collaboration to evaluate the combination of Anbogen's
ABT-301, with BeiGene's tislelizumab, in patients with mismatch repair–proficient or microsatellite stable metastatic colorectal
cancer ("mCRC") in a global Phase II trial. Gilead Sciences and Arcus Biosciences announced new data from Cohort
B of ARC-9, a Phase Ib/II study evaluating the safety and efficacy of etrumadenant, a dual A2a/b adenosine receptor antagonist, plus anti-PD-1
monoclonal antibody zimberelimab, FOLFOX chemotherapy and bevacizumab (EZFB) in third-line mCRC. In 2023, TriSalus Life Sciences announced
it plans to initiate a Phase II trial of SD-101 (Nelitolimod) for colorectal cancer. NextCure, Inc. have NC410 in the clinic
for Colorectal Cancer. Faron Pharmaceuticals Oy have Bexmarilimab in the clinic for Colorectal Cancer. Merck & Co., Inc. and
Agenus are collaborating on MK-4830 for Colorectal Cancer.

/ Mpox

 BioNTech
SE is conducting a Phase I/II study in the U.S. evaluating the safety, tolerability, reactogenicity and immunogenicity of the
investigational RNA-based multivalent vaccine candidate BNT166a for active immunization against mpox. The study is expected to
complete in the first quarter of 2026. In 2023, Moderna announced it has mRNA-1769 in preclinical development for the treatment
of Mpox. Moderna is conducting a P1/2 study of mpox vaccine in the U.K. Emergent BioSolutions, Inc. has enabled the enrolment
of the first patients for the MOSA, a pan-African randomized platform adaptive trial to test Tembexa to treat mpox at Mbandaka
Hospital in Equateur Province, Democratic Republic of Congo. A first interim analysis is expected by the end of the first
quarter of 2025. Other companies we monitor include GeoVax Labs, Inc., NanoViricides, Inc., EpiVax, Inc., Gylden Pharma
Limited.

 Covid-19

 There
are many vaccine products in development for the treatment or prevention of Covid-19 globally. Approved products include
Pfizer-BioNTech's (BNT162b2), Moderna's (mRNA-1273) and Novavax's (NVX-CoV2373) which are routinely updated to
address new variants. CSL and Arcturus announced that the European Commission has granted marketing authorization for
KOSTAIVE (ARCT-154), an mRNA COVID-19 vaccine, KOSTAIVE is currently marketed in Japan against COVID-19. Codagenix is
developing CoviLiv as an intranasal vaccine candidate and in Phase 3 for COVID-19. Other companies working in the area
include: Vaxart Inc. which is developing a potentially orally administered vaccine based on the adenovirus serotype 5 (Ad-5) vector
to express the spike protein of SARS-CoV-2; CastleVax USA which is developing a potential nasally administered vaccine based on
a Newcastle disease virus (NDV) vector to express the Spike protein of SARS-CoV-2.

 Intellectual
Property

 We
believe that we have an extensive patent portfolio and substantial know-how relating to TNX-102 SL, Zembrace, Tosymra, TNX-1300,
TNX-1500, TNX-2900, TNX-1900, TNX-801, TNX-1800 and TNX-1700, and our other product candidates. Our patent portfolio, described more
fully below, includes claims directed to various compositions and methods of use related to our product candidates. As of March 10,
2025, the patents we are either the owner of record of or own the contractual right to include 42 issued U.S. patents and 432 issued
non-U.S. patents. We are actively pursuing an additional 23 U.S. non-provisional patent applications, 3 international patent applications,
and 244 non-U.S./non-international patent applications.

 We
strive to protect the proprietary technology that we believe is important to our business, including our proprietary technology
platform, our product candidates, and our processes. We seek patent protection in the U.S. and internationally for our products,
their methods of use and processes of manufacture, and any other technology to which we have rights, where available and when
appropriate. We also rely on trade secrets that may be important to the development of our business.

 Our
success will depend on 1) the ability to obtain and maintain patent and other proprietary rights in commercially important technology,
inventions and know-how related to our business, 2) the validity and enforceability of our patents, 3) the continued confidentiality
of our trade secrets, and 4) our ability to operate without infringing the valid and enforceable patents and proprietary rights
of third parties. We also rely on continuing technological innovation and in-licensing opportunities to develop and maintain our
proprietary position.

 We
cannot be certain that patents will be granted with respect to any of our pending patent applications or with respect to any patent
applications we may own or license in the future, nor can we be certain that any of our existing patents or any patents we may
own or license in the future will be useful in protecting our technology. For this and more comprehensive risks related to our
intellectual property, please see "Risk Factors — Risks Relating to Our Intellectual Property."

 The
term of individual patents depends upon the legal term of the patents in the countries in which they are obtained. In most countries
in which we file, the patent term is 20 years from the date of filing the first non-provisional priority application. In the United
States, a patent's term may be lengthened by patent term adjustment, which compensates a patentee for administrative delays
by the PTO in granting a patent or may be shortened if a patent is terminally disclaimed over another patent.

 The
term of a U.S. patent that covers a drug approved by the FDA or methods of making or using that drug may also be eligible for
patent term extension, which permits patent term restoration as compensation for the patent term lost during the FDA regulatory
review process. The Drug Price Competition and Patent Term Restoration Act, also known as the Hatch-Waxman Act, is a federal law
that encourages new drug research by restoring patent term lost to regulatory delays by permitting a patent term extension of
up to five years beyond the statutory 20-year term of the patent for the approved product or its methods of manufacture or use
if the active ingredient has not been previously approved in the U.S. The length of the patent term extension is related to the
length of time the drug is under regulatory review. A patent term extension cannot extend the remaining term of a patent beyond
a total of 14 years from the date of product approval and only one patent applicable to an approved drug may be extended. Similar
provisions are available in Europe and some other foreign jurisdictions to extend the term of a patent that covers an approved
drug.

 When
possible, depending upon the length of clinical trials and other factors involved in the filing of an NDA, we expect to apply
for patent term extensions for patents covering our product candidates and their methods of use.

 The
patent portfolios for our proprietary technology platform and our most advanced product candidates as of February 10, 2025 are
summarized below.

SL — Central Nervous System Conditions

 Our
patent portfolio for TNX-102 SL includes patents and patent applications directed to compositions of matter of CBP, formulations
containing CBP, and methods for treating CNS conditions, such as TNX-102 SL for PTSD, for pain, fatigue and sleep disturbances
in fibromyalgia, for treating or managing fibromyalgia (early onset response, favorable tolerability, or side effect profile),
for alcohol abuse, for disordered sleep, for sexual dysfunction, for depression in fibromyalgia, for fatigue and disordered sleep
(e.g., CAP rates), for post-acute sequelae of SARS-CoV-2 infection, for acute stress reaction/acute stress disorder, and for agitation
in neurodegenerative conditions, e.g., AD.

 Certain
eutectic compositions were discovered by development partners and are termed the "Eutectic Technology." The patent
portfolio for CBP compositions (e.g., TNX-102 SL) relating to the Eutectic Technology includes patents and patent applications
directed to eutectic compositions containing CBP, eutectic CBP formulations, methods for treating PTSD and other CNS conditions
utilizing eutectic CBP compositions and formulations, and methods of manufacturing eutectic CBP compositions. The Eutectic Technology
patent portfolio includes U.S. patents, such as U.S. Patent No. 9,636,408, U.S. Patent No. 9,956,188, U.S. Patent No. 10,117,936,
U.S. Patent No. 10,357,465, U.S. Patent No. 10,864,175, U.S. Patent No. 11,026,898, and U.S. Patent No. 11,839,594. These U.S.
patents and counterpart non-U.S. patents, and any U.S. and non-U.S. patents that issue in the future from this portfolio would
expire in 2034 or 2035, excluding any patent term adjustments or extensions.

 The
unique pharmacokinetic profile of TNX-102 SL, or the PK Technology, was discovered by Tonix and its development partners. The
patent portfolio for TNX-102 SL relating to the PK Technology includes patent applications directed to compositions of matter
of CBP, formulations containing CBP, methods for treating PTSD, agitation in neurodegenerative conditions, and other CNS conditions
utilizing these compositions and formulations. The PK Technology patent portfolio includes U.S. Patent Application No. 13/918,692.
If U.S. and non-U.S. patents claiming priority from those applications issue, those patents would expire in 2033, excluding any
patent term adjustments or extensions.

 On
May 2, 2017, U.S. Patent No. 9,636,408 entitled "Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline
Hydrochloride", issued. The patent claims recite pharmaceutical compositions comprising the eutectic. The patent claims
also recite methods of manufacturing the eutectic.

 On
September 13, 2017, European patent 2,501,234, entitled "Methods and Compositions for Treating Symptoms Associated with
PTSD Using Cyclobenzaprine", issued. This patent recites the use of CBP for the treatment of PTSD. On January 11, 2024,
the European Patent Office Technical Board of Appeal reversed the October 2019 decision of the Opposition Division of the European
Patent Office maintaining the patent in unamended form and held the patent to be invalid. No appeal may be taken from that decision.

 On
December 15, 2017, Japanese Patent No. 6259452, entitled "Compositions and Methods for Transmucosal Absorption," issued.
These claims relate to the pharmacokinetic profile of TNX-102 SL.

 On
August 3, 2022, European Patent No. 2861223, entitled "Compositions and Methods for Transmucosal Absorption," issued.
These claims relate to the pharmacokinetic profile of TNX-102 SL.

 On
March 20, 2018, U.S. Patent No. 9,918,948 entitled "Methods and Compositions for Treating Symptoms Associated with PTSD
Using Cyclobenzaprine," issued. The claims recite a method of using TNX-102 SL's active ingredient cyclobenzaprine
to treat PTSD and provides US market exclusivity until 2030, excluding any patent term extensions.

 On
March 23, 2018, Japanese Patent No. 6310542 entitled "Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline
Hydrochloride", issued. The claims recite pharmaceutical compositions comprising the eutectics and methods of manufacturing
these eutectic formulations.

 On
May 1, 2018, U.S. Patent No. 9,956,188, entitled "Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline
Hydrochloride", issued. The claims recite a eutectic of cyclobenzaprine hydrochloride and mannitol and methods of making
those eutectics.

 On
November 6, 2018, U.S. Patent No. 10,117,936, entitled "Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline
Hydrochloride", issued. The claims recite pharmaceutical compositions of eutectics of cyclobenzaprine hydrochloride and
mannitol and methods of making those compositions.

 On
April 16, 2019, Chinese Patent No. ZL 201480024011.1 entitled "Eutectic Formulations of Cyclobenzaprine Hydrochloride and
Amitriptyline Hydrochloride", issued. The claims recite pharmaceutical compositions comprising eutectics of cyclobenzaprine
hydrochloride and mannitol and methods of making those compositions.

 On
August 4, 2023, Chinese Patent No. ZL201910263541.6, entitled "Eutectic Formulations of Cyclobenzaprine Hydrochloride and
Amitriptyline Hydrochloride," issued. The claims recite a eutectics of cyclobenzaprine hydrochloride and beta-mannitol and
methods of making those eutectics.

 On
July 23, 2019, U.S. Patent No. 10,357,465 entitled "Eutectic Formulations of Cyclobenzaprine Hydrochloride", issued.
The claims recite a eutectic of cyclobenzaprine hydrochloride and mannitol and methods of making those eutectics.

 On
December 11, 2019, European patent 2968992, entitled "Eutectic Formulations of Cyclobenzaprine Hydrochloride", issued.
This patent recites pharmaceutical compositions comprising a eutectic of mannitol and Cyclobenzaprine HCl and methods of making
the same. In response to an opposition filed in September 2020 by Hexal AG, the European Patent Office's Opposition Division
upheld the patent in unamended form after the January 2022 oral proceedings. Hexal AG did not appeal that decision.

 On
December 25, 2019, European patent 2,683,245, entitled "Methods and Compositions for Treating Depression Using Cyclobenzaprine",
issued. The claims recite the use of CBP for the treatment of depression in a FM patient. This patent provides TNX-102 SL with
European market exclusivity until March 2032 and may be extended based on the timing of the European marketing authorization of
TNX-102 SL for depression in a FM patient. In September 2020, Hexal AG filed an opposition against this patent. The European Patent
Office's Opposition Division upheld the patent claims in unamended form after the February 2022 oral proceedings. Hexal
AG did not appeal that decision.

 On
June 4, 2024, U.S. Patent No. 11,998,516, entitled "Methods and Compositions for Treating Depression Using Cyclobenzaprine,"
issued. The claims recite methods for treating major depressive disorder in a fibromyalgia patient using a composition comprising
cyclobenzaprine or its salts.

 On
December 15, 2020, U.S. Patent No. 10,864,175 entitled "Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline
Hydrochloride", issued. The claims recite a eutectic comprising cyclobenzaprine hydrochloride and beta-mannitol.

 On
December 12, 2023, U.S. Patent No. 11,839,594 entitled "Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline
Hydrochloride", issued. The claims recite a method of manufacturing a eutectic comprising cyclobenzaprine hydrochloride
and beta-mannitol comprising mixing or milling.

 On
February 14, 2024, European Patent No. 3,650,081, entitled "Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline
Hydrochloride", issued. The claims recite a eutectic of mannitol and cyclobenzaprine hydrochloride and methods of manufacturing
a eutectic.

 On
April 8, 2021, U.S. non-provisional Patent Application No. 17/226,058 and International Patent Application No. PCT/US2021/026492,
entitled "Cyclobenzaprine Treatment for Sexual Dysfunction" were filed. The PCT application is now nationalized in
Australia, Canada, China, European Patent Office, Japan, and Hong Kong. On October 5, 2022, International Patent Application No.
PCT/US2022/045791, entitled "Cyclobenzaprine Treatment for Sexual Dysfunction," was filed and is now nationalized
in European Patent Office and U.S. (U.S. Patent Application No. 18/698,483). The claims of these applications are directed to
methods using pharmaceutical compositions and combinations for treating sexual dysfunction with cyclobenzaprine or pharmaceutically
acceptable salts of cyclobenzaprine.

 On
October 25, 2016 and July 28, 2020, U.S. Patent No. 9,474,728 and U.S. Patent No. 10,722,478, entitled "Methods and Compositions
for Treating Fatigue Associated with Disordered Sleep Using Very Low Dose Cyclobenzaprine", issued, respectively. The claims
are directed to a method for monitoring the effectiveness of cyclobenzaprine treatment for disordered sleep and method for reducing
CAP rates A2 or A3 by treating a subject with a pharmaceutical composition comprising cyclobenzaprine.

 On
December 11, 2018, International Patent Application No. PCT/IB2018/001509, entitled "Cyclobenzaprine Treatment for Agitation,
Psychosis and Cognitive Decline in Dementia and Neurodegenerative Conditions," was filed. The PCT application is now nationalized
in 16 countries. The claims are directed to methods for treating or preventing agitation, cognitive decline, psychosis, and associated
symptoms thereof using pharmaceutical compositions and combinations with cyclobenzaprine or pharmaceutically acceptable salts
of cyclobenzaprine.

 On
November 28, 2023, U.S. Patent No. 11,826,321, entitled "Cyclobenzaprine Treatment for Agitation, Psychosis and Cognitive
Decline in Dementia and Neurodegenerative Conditions," issued. The claims are directed to a method for treating or preventing
one or more agitation associated symptoms comprising administering a eutectic of cyclobenzaprine HCl and mannitol.

 On
August 20, 2019, International Patent Application No. PCT/IB2019/000940, entitled "Methods of Treating Acute Stress Disorder
and Posttraumatic Stress Disorder," was filed. The PCT application is now nationalized in 18 countries. The claims are directed
to methods of treating acute stress disorder or post-traumatic stress disorder in a subject who has experienced a traumatic event
using pharmaceutical compositions with cyclobenzaprine, amitriptyline or pharmaceutically acceptable salts of cyclobenzaprine
or amitriptyline.

 On
November 19, 2021, International Patent Application No. PCT/US2021/060011, entitled "Cyclobenzaprine Treatment for Alcohol
Use Disorder," was filed. The PCT application is now nationalized in 13 countries. The claims are directed to methods for
treating alcohol use disorder and associated symptoms using pharmaceutical compositions with cyclobenzaprine or pharmaceutically
acceptable salts of cyclobenzaprine.

 On
December 7, 2021, International Patent Application No. PCT/US2021/062244, entitled, "Cyclobenzaprine Treatment for Fibromyalgia,"
was filed. The PCT is now nationalized in 15 countries. The claims are directed to methods for treating fibromyalgia and its associated
symptoms of pain, sleep disturbance and/or fatigue by transmucosally administering a eutectic of cyclobenzaprine hydrochloride
and mannitol in dosage units with a basifying agent.

 On
June 21, 2023, U.S. non-provisional Patent Application No. 18/212,500 and International Patent Application No. PCT/US2023/025895,
entitled "Cyclobenzaprine Treatment for Post-Acute Sequelae of (SARS)-CoV-2 Infection (PASC)," were filed. The PCT
is now nationalized in 9 countries. The claims are directed to methods of treating PASC or one or more associated symptoms comprising
administering cyclobenzaprine or a pharmaceutically acceptable salts of cyclobenzaprine.

 On
December 19, 2024, U.S. non-provisional Patent Application No. 18/988,194 and International Patent Application No. PCT/US2024/061125,
entitled "Early Onset Response, Favorable Tolerability, and Side Effect Profile in the Treatment of Fibromyalgia,"
were filed. The claims are directed to methods for treating or managing fibromyalgia and its associated symptoms in subjects characterized
by an early onset of one or more of: (1) a reduction in widespread pain; (2) a reduction in sleep disturbance; (3) a reduction
in fatigue; or (4) an improved sleep quality. The claims are also directed to methods for preventing or avoiding clinically meaningful
changes in mean weight, in mean systolic blood pressure or mean diastolic blood pressure, or a decline in sexual functioning.

 On
January 23, 2025, International Patent Application No. PCT/US2025/012803, entitled Cyclobenzaprine Treatment for Acute Stress
Reaction or Acute Stress Disorder," was filed. The claims are directed to methods for treating or preventing acute stress
reaction (ASR) or acute stress disorder (ASD) and associated symptoms thereof using a composition with cyclobenzaprine or its
salts in.

 TNX-1900
— Oxytocin-Based Treatments for Obesity, Eating Disorders, Pain, Insulin Resistance, and Diabetes

 We
have acquired the migraine and pain treatment technologies of Trigemina, Inc., and have assumed its license rights to related
technologies from The Board of Trustees of the Leland Stanford Junior University. TNX-1900, an enhanced formulation of nasal oxytocin,
has demonstrated activity in several non-clinical studies in pain, including migraine.

 As
part of our acquisition, we acquired International Patent Application No. PCT/US2016/012512, filed on January 7, 2016, entitled
"Magnesium-Containing Oxytocin Formulations and Methods of Use" (nationalized in 13 countries). We also acquired U.S.
Patent Nos. 9,629,894 and 11,389,473, entitled "Magnesium-Containing Oxytocin Formulations and Methods of Use", which
will expire in January 2036, excluding any patent term extensions. On October 4, 2023, European Patent No. 3242676, entitled "Magnesium-Containing
Oxytocin Formulations and Methods of Use," issued.

 We
also acquired International Patent Application No. PCT/US2017/027265, filed April 12, 2017, entitled "Magnesium-Containing
Oxytocin Formulations and Methods of Use" (nationalized in 9 countries). On December 3, 2024, U.S. Patent No. 12,156,897,
entitled "Magnesium-Containing Oxytocin Formulations and Methods of Use," issued. The patent, which claims methods
for treating autism spectrum disorder, social anxiety disorder, or a social communication disorder, will expire in April 2037,
excluding any patent term extensions.

 We
also have rights to International Patent Application No. PCT/US2019/020419, filed on April 12, 2017, entitled "Labeled Oxytocin
and Method of Manufacture and Use" (nationalized in the U.S., European Patent Office and Japan). On April 30, 2024, U.S.
Patent No. 11,970,554, entitled "Labeled Oxytocin and Method of Manufacture and Use," issued.

 We
have entered into an exclusive license to the University of Geneva's technology for using oxytocin to treat insulin resistance
and related syndromes, including obesity. This license expands our intranasal potentiated oxytocin development program, TNX-1900,
into cardiometabolic syndromes. Under the license, we have rights to European Patent No. EP2571511B1, entitled "New Uses
of Oxytocin-like Molecules and Related Methods." We also have rights to U.S. Patent No. 9,101,569, entitled "Methods
for the Treatment of Insulin Resistance." The U.S. and non-U.S. patents expire in May 2031, excluding any patent term adjustments
or extensions.

 TNX-2900
— Oxytocin-Based Therapeutics Treatments for Prader-Willi Syndrome (PWS)

 We
have licensed technology using oxytocin-based therapeutics for the treatment of PWS and non-organic failure to thrive disease
from the French National Institute of Health and Medical Research (INSERM). The co-exclusive license relates to TNX-2900, an intranasal
potentiated oxytocin, for the treatment of Prader-Willi syndrome and other feeding disorders. Under the license, we have rights
to European Patent No. EP2575853B1, entitled "Methods and Pharmaceutical Composition for the Treatment of a Feeding Disorder
with Early-Onset in a Patient"; U.S. Patent No. 8,853,158, entitled "Methods for the Treatment of a Feeding Disorder
with Onset During Neonate Development Using an Agonist of the Oxytocin Receptor"; and U.S. Patent No. 9,125,862, entitled
"Methods for the Treatment of Prader-Willi-like Syndrome or Non-Organic Failure to Thrive (NOFITT) Feeding Disorder Using
an Agonist of the Oxytocin Receptor." The U.S. and non-U.S. patents expire in May 2031, excluding any patent term extensions.

 TNX-1300
— Cocaine Intoxication Treatment

 We
have licensed rights from The Trustees of Columbia University in the City of New York, The Regents of the University of Michigan,
and University of Kentucky Research Foundation to develop a potential product, TNX-1300, for the treatment of cocaine intoxication.
The licensed patents are directed to mutant cocaine esterase polypeptides and methods of using these polypeptides as anti-cocaine
therapeutics. They include U.S. Patent Nos. 8,318,156 and 9,200,265, entitled "Anti-Cocaine Compositions and Treatment"
and various counterpart patents outside of the U.S (e.g., European Patent 2046368). These patents provide TNX-1300 with US market
exclusivity until February 2029, and market exclusivity outside of the U.S. until July 10, 2027, subject to any patent term extensions.

— anti-CD40L Therapeutics

 We
are developing TNX-1500, a humanized mAb that targets CD40L for the prevention and treatment of organ transplant rejection. In
this regard, we filed International Application No. PCT/EP2020/068589, entitled "Anti-CD154 antibodies and uses thereof"
on July 1, 2020 (nationalized in 15 countries). We also filed International Patent Application No. PCT/US2020/028002 on April
13, 2020, entitled "Inhibitors of CD40-CD154 Binding" (nationalized in U.S., Canada, China, European Patent Office
and Japan). We also filed International Patent Application No. PCT/US2022/011404, entitled "Methods of Inducing Immune Tolerance
with Modified Anti-CD154 Antibodies" on January 6, 2022 (nationalized in 14 countries).

 On
August 28, 2024, European Patent No. 3993876, entitled "Anti-CD154 Antibodies and Uses Thereof," issued (validated
in 37 countries). The claims recite an isolated antibody that binds CD154, compositions comprising the antibody, and use of the
compositions for treating or preventing a transplant rejection.

 TNX-801
— Live Horsepox Vaccine for Prevention of Smallpox and Mpox

 We
own the rights to develop a potential biodefense technology, TNX-801, a live horsepox that is being developed as a new smallpox
and mpox preventing vaccine, we have filed patent applications directed to synthetic chimeric poxviruses and methods of using
these poxviruses to protect individuals against smallpox. These applications include U.S. non-provisional Patent Application No.
15/802,189 and International Patent Application No. PCT/US2017/059782 (nationalized in 15 countries and filed in 4 non-PCT countries).
We also own the rights to develop other vaccine candidates against smallpox. With respect to these vaccine candidates, we own
International Patent Application No. PCT/US2019/030486 and the non-convention and national phase applications related thereto
(nationalized in 17 countries and filed in 2 non-PCT countries). The smallpox vaccine technologies relate to proprietary forms
of live horsepox and vaccinia vaccines which may be safer than ACAM2000, the only currently available replication competent, live
vaccinia vaccine to protect against smallpox disease. We believe that this technology, after further development, may be of interest
to biodefense agencies in the U.S. and other countries.

 On
May 31, 2022, U.S. Patent No. 11,345,896 was issued. The claims recite a synthetic chimeric orthopoxvirus (scOPV), a synthetic
chimeric horsepox virus (scHPXV), methods of generating the scOPV and scHPXV, and compositions comprising the scOPV or scHPXV.

 TNX-1800
and TNX-1850 — Live Modified Horsepox Vaccine for Prevention of COVID-19

 We are developing TNX-1800 and TNX-1850, live minimally replicative modified
HPXVs, as a COVID-19 preventing vaccine against different strains of SARS-CoV-2. On February 26, 2021, we filed International Patent Application
No. PCT/US2021/020119, entitled "Recombinant Poxvirus Based Vaccine Against SARS-CoV-2." On the same date, we also filed applications
in Argentina and Taiwan and we filed U.S. Application No. 17/187,678. The PCT application is now nationalized in 19 countries. These applications
are directed to synthetic poxviruses comprising a SARS-CoV-2 virus protein, poxvirus delivery vectors for SARS-CoV-2 virus proteins and
methods of using these modified poxviruses to protect individuals against COVID-19.

 TNX-1700
— Recombinant Trefoil Family Factor 2 (rTFF2) to Treat Gastric and Colorectal
Cancers

 We have licensed rights from The Trustees of Columbia University in the
City of New York to develop a potential product, TNX-1700, for the treatment of gastric and colorectal cancers. The licensed patents are
directed to rTFF2 compositions and methods of treatment. The licensed patents U.S. Patent No. 10,124,037 and U.S. Patent No. 11,167,010.
The licensed patents provide TNX-1700 with US market exclusivity until April 2033, subject to any patent term extensions. On August 27,
2020, we filed International Patent Application No. PCT/IB2020/000699 entitled "Modified TFF2 Polypeptides." The PCT application
is now nationalized in 12 countries.

 TNX-3900
— Antiviral Drugs

 We
have acquired the intellectual property rights of Healion Bio, Inc. to develop antiviral drugs. These rights include International
Patent Application No. PCT/US2021/032461 (nationalized in 6 countries) and U.S. Patent Application No. 18/055,596, both entitled
"Compositions and Methods for Increasing Efficacy of a Drug."

 TNX-4300
— Estianeptine for Psychiatric and Neurodegenerative Diseases

 We
are developing TNX-4300, the (S)-isomer of tianeptine, for psychiatric and neurodegenerative diseases. On March 27, 2024, we filed
International Patent Application No. PCT/US2024/021799, entitled "(S)-Tianeptine and Use in Treating Disorders and Conditions
Associated with Peroxisome Proliferator-Activated Receptor."

 Zembrace and Tosymra — Sumatriptan

 We have acquired the
intellectual property rights of Zembrace SymTouch and Tosymra and their uses in treating migraine from Upsher-Smith Laboratories,
LLC. These rights include U.S. Patent No. 9,211, 282, U.S. Patent No. 9,610,280, U.S. Patent No. 9,974,770, U.S. Patent No. 10,603,305,
U.S. Patent No. 11,337,962, U.S. Patent No. 10,537,554, and U.S. Patent No. 11,364, 224. These rights also include International
Patent Application No. PCT/US2016/015961, entitled "Pharmaceutical Composition Comprising Sumatriptan for Treating Migraine,"
(nationalized in 7 countries, excluding rights in Brazil and China) and International Patent Application No. PCT/IB2010/001708,
entitled "Formulations Comprising Triptan Compounds," (nationalized in 11 countries, excluding rights in Brazil, Russia,
India, and China).

 Trade Secrets

 In addition to patents,
we rely on trade secrets and know-how to develop and maintain our competitive position. For example, significant aspects of our
proprietary technology platform are based on unpatented trade secrets and know-how. Trade secrets and know-how can be difficult
to protect. We seek to protect our proprietary technology and processes, in part, by confidentiality agreements and invention assignment
agreements with our employees, consultants, scientific advisors, contractors, and commercial partners. These agreements are designed
to protect our proprietary information and, in the case of the invention assignment agreements, to grant us ownership of technologies
that are developed through a relationship with a third party. We also seek to preserve the integrity and confidentiality of our
data and trade secrets by maintaining physical security of our premises and physical and electronic security of our information
technology systems. While we have confidence in these individuals, organizations and systems, agreements or security measures may
be breached, and we may not have adequate remedies for any breach. In addition, our trade secrets may otherwise become known or
be independently discovered by competitors. To the extent that our contractors use intellectual property owned by others in their
work for us, disputes may arise as to rights in related or resulting inventions and know-how.

 Issued Patents

 Our current patents owned or licensed include:

 Anti-Cocaine Therapeutics

 Title

 8,318,156

 February 14, 2029

 9,200,265

 December 30, 2027

 2007272955

 2014201653

 2657246

 612929

 2046368 (602007045044.6 in Germany; 502016000056543 in Italy)

 European Patent Office – Germany, Spain, France, United Kingdom, and Italy

 2009/00197

 305483

 196411

 Mutants of Cocaine Esterase (CocE) Polypeptide, Nucleic Acids Encoding Them, Pharmaceutical Compositions Comprising Them and Uses Thereof

 Sublingual CBP/Amitriptyline

 Title

 6259452

 Japan

 631144

 I590820

 2013274003

 I642429

 726488

 I683660

 2018241128

 2876902

 IDP000076019

 382516

 2861223

 (AL/P/2022/458 in Albania; P20221325T in Croatia; 602013082236.0
in Germany; 3111421 in Greece; 502022000069474 in Italy; P912561 in North Macedonia; SM-T-202200436 in San Marino; RS63822B1 in
Serbia; and 2022-GE-787024 in Turkey)

 European Patent Office – Italy, Albania, Austria, Belgium, Bulgaria, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Latvia, Lithuania, Luxembourg, Malta, Monaco, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom, San Marino, Serbia, Croatia, North Macedonia and Turkey

 236268

 Compositions for Transmucosal Delivery and Uses Thereof

 2015/00288

 BR112014031394-6

 1209361

 398632

 A059897

 Venezuela

 MY-194495-A

 3,118,913

 10201605407T

 CBP – Depression

 Title

 11,998,516

 March 5, 2032

 2012225548

 2016222412

 2018204633

 2020203874

 614725

 714294

 2,829,200

 2683245

 (AL/P/2020/15 in Albania; P20200142 in Croatia; MK/P/2020/68
 in North Macedonia; 602012066717.6 in Germany; 3103147 in Greece; HU/E048596 in Hungary; 502020000014740 in Italy; 10476 in North
 Macedonia; SM-T-202000083 in San Marino; 60240 in Serbia; 2773834 in Spain; and 2020-GE-5216 in Turkey)

 European Patent Office – Albania, Austria, Belgium, Bulgaria, Switzerland, Cyprus, Czechia, Germany, Denmark, Estonia, Spain, Finland, France, United Kingdom, Greece, Croatia, Hungary, Ireland, Iceland, Italy, Lithuania, Luxembourg, Latvia, Monaco, Republic of North Macedonia, Malta, Netherlands, Norway, Poland, Portugal, Romania, Serbia, Sweden, Slovenia, Slovakia, San Marino, and Turkey

 CBP – PTSD

 Title

 9,918,948

 Methods and Compositions for Treating Symptoms Associated with Post-Traumatic Stress Disorder Using Cyclobenzaprine

 November 18, 2030

 CBP Fatigue

 Title

 9,474,728

 Methods and Compositions for Treating Fatigue Associated with Disordered Sleep Using Very Low Dose Cyclobenzaprine

 June 9, 2031

 10,722,478

 Methods and Compositions for Treating Fatigue Associated with Disordered Sleep Using Very Low Dose Cyclobenzaprine

 June 9, 2031

 CBP – Agitation in Neurodegenerative
Condition

 Title

 11,826,321

 Cyclobenzaprine Treatment for Agitation, Psychosis and Cognitive Decline in Dementia and Neurodegenerative Conditions

 275289

 Cyclobenzaprine Treatment for Agitation, Psychosis and Cognitive Decline in Dementia and Neurodegenerative Conditions

 411601

 Cyclobenzaprine Treatment for Agitation, Psychosis and Cognitive Decline in Dementia and Neurodegenerative Conditions

 3,083,341

 Cyclobenzaprine Treatment for Agitation, Psychosis and Cognitive Decline in Dementia and Neurodegenerative Conditions

 2020/03243

 Cyclobenzaprine Treatment for Agitation, Psychosis and Cognitive Decline in Dementia and Neurodegenerative Conditions

 MY-207073-A

 Cyclobenzaprine Treatment for Agitation, Psychosis and Cognitive Decline in Dementia and Neurodegenerative Conditions

 CBP/Amitriptyline Eutectic Formulations

 Title

 631152

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 747040

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 9,636,408

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 9,956,188

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 10,117,936

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 10,322,094

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 10,357,465

 10,736,859

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 10,864,175

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 10,864,176

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 11,026,898

 11,737,991

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 11,839,594

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 6310542

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 Japan

 6614724

 Japan

 6717902

 Japan

 6088

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 ZL201480024011.1

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 China

 ZL.201580050140.2

 China

 2014233277

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 2015317336

 I661825

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 I740136

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 IDP000055516

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 IDP000063221

 IDP000076872

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 2968992

 (1211591 in Austria, CZ2014-762323 in Czechia, 602014058260.5 in Germany,
E018723 in Estonia, P20200055 in Croatia, 201361792757 P in Ireland, 2020.67 in Monaco, P-2020/0094 in Serbia, 201431487 in Slovenia,
33269 in Slovakia, 2020000045 in San Marino, AL/P/2019/906 in Albania, MK/P/2020/67 in Republic of North Macedonia, 3102655 in Greece,
502020000007756 in Italy)

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 European Patent Office - Albania, Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Republic of North Macedonia, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Monaco, Netherlands, Norway, Poland, Portugal, Romania, San Marino, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, United Kingdom

 3650081

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 European Patent Office - Albania, Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Republic of North Macedonia, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Monaco, Netherlands, Norway, Poland, Portugal, Romania, San Marino, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, United Kingdom

 241353

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 251218

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Methods of Producing Same

 277814

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Methods of Producing Same

 September 18, 2034

 370021

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 387402

 388137

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 2015/07443

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 2017/01637

 BR112015022095-9

 Pharmaceutical Composition, Method of Fabrication, Eutectic Composition and Use of Compositions Containing Cyclobenzaprine HCl and Mannitol

 2904812

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 3119755

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 HK1218727

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 MY-186047-A

 398845

 India

 441374

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 India

 MY-196014-A

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 ZL201910263541.6

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 China

 2020289838

 HK40047283

 ZL202011576351.9

 China

 730379

 768064

 40013124

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 40030559

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 Analogs of CBP

 Title

 11,517,557

 Analogs of Cyclobenzaprine and Amitryptilene

 July 13, 2038

 12,156,864

 Analogs of Cyclobenzaprine and Amitryptilene

 July 13, 2038

 7330964

 Analogs of Cyclobenzaprine and Amitryptilene

 Japan

 July 13, 2038

 Oxytocin therapeutics

 Title

 9,629,894

 11,389,473

 11201705591P

 388286

 253347

 7030517

 Japan

 ZL201680013809.5

 China

 3242676

 (P20231438 in Croatia; 602016083177.5 in Germany; 3114323
in Greece; HU/E065385 in Hungary; 65034 in Serbia; SM-T-202400020 in San Marino; and 2023-GE-778438 in Turkey)

 Europe – (Albania, Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Monaco, Netherlands, North Macedonia, Norway, Poland, Portugal, Romania, San Marino, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, United Kingdom)

 2017/05176

 1252942

 2020286221

 734097

 771693

 10-2677904

 Republic of Korea

 7455402

 Japan

 BR112017014545-6

 11,970,554

 March 1, 2039

 7093559

 Japan

 2017250505

 ZL201780036185.3

 China

 40005263

 12,156,897

 417307

 3442560

 (602017086259.2 in Germany; and SM/T/2025/000041 in
San Marino)

 Europe – (Albania, Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Monaco, Netherlands, North Macedonia, Norway, Poland, Portugal, Romania, San Marino, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, and United Kingdom)

 2575853

 (2595251 in Spain)

 Methods and Pharmaceutical Composition for the Treatment of a Feeding Disorder with Early-Onset in a Patient

 Europe – (Spain, France, and United Kingdom)

 May 25, 2031

 8,853,158

 Methods for the Treatment of a Feeding Disorder with Onset During Neonate Development Using an Agonist of the Oxytocin Receptor

 May 25, 2031

 9,125,862

 Methods for the Treatment of Prader-Willi-like Syndrome or Non-Organic Failure to Thrive (NOFITT) Feeding Disorder Using an Agonist of the Oxytocin Receptor

 May 25, 2031

 2571511

 (2526672 in Spain)

 New Uses of Oxytocin-like Molecules and Related Methods

 Europe – (Switzerland, Spain, France, United Kingdom, and Ireland)

 May 17, 2031

 9,101,569

 Methods for the Treatment of Insulin Resistance

 June 22, 2031

 Nociceptin/Orphanin FQ therapeutics

 Title

 8,551,949

 August 11, 2031

 9,238,053

 October 12, 2030

 2010281436

 ZL 201080042858.4

 China

 2459183 (602010028120.5 in Germany)

 Europe – (Switzerland, Germany, Denmark, France, and United Kingdom)

 1169804

 329837

 597763

 10201406930U

 201200584

 2,769,347

 413642

 India

 Tianeptine – Neurocognitive
Dysfunction

 Title

 9,314,469

 Method for Treating Neurocognitive Dysfunction

 September 24, 2030

 2723688

 Method for Treating Neurodegenerative Dysfunction

 April 30, 2029

 2299822 (602009047361.1 in Germany; 2644511 in Spain; and E911827 in Austria)

 Method for Treating Neurodegenerative Dysfunction

 European Patent Office – Austria, Belgium, Switzerland, Germany, Spain, France, United Kingdom, Ireland, Luxembourg, Monaco, and Portugal

 April 30, 2029

 3246031 (602009057284.9 in Germany; 2727851 in Spain; and E1100344 in Austria)

 Method for Treating Neurocognitive Dysfunction

 European Patent Office – Austria, Belgium, Switzerland, Germany, Spain, France, United Kingdom, Ireland, Luxembourg, Monaco, and Portugal

 April 30, 2029

 TFF2 therapeutics

 Title

 10,124,037

 Trefoil family factor proteins and uses thereof

 U.S.A

 April 2, 2033

 11,167,010

 Trefoil family factor proteins and uses thereof

 U.S.A

 April 2, 2033

 Title

 11,345,896

 U.S.A

 397516

 2019/02868

 MY-200354-A

 2017353868

 ZL201780078546.0

 China

 40014109

 2022/04981

 Triptan Compound – Formulations

 Title

 9,211,282

 U.S.A

 July 19, 2031

 9,610,280

 U.S.A

 9,974,770

 U.S.A

 10,603,305

 U.S.A

 11,337,962

 12,090,139

 2010299607

 2775404

 2480197

 (E760080 in Austria; 502016000000073 in Italy; 602010028995.8
in Germany; and 2553862 in Spain)

 European Patent Office - Austria, Belgium, Czechia, Denmark, France, Germany, Italy, Spain, Switzerland, and United Kingdom

 5845183

 Japan

 101646079

 Republic of Korea

 338110

 599344

 2012/02168

 Triptan Compound – Migraine

 Title

 10,537,554

 Pharmaceutical Composition for Treating Migraine

 U.S.A

 January 29, 2036

 11,364,224

 Pharmaceutical Composition for Treating Migraine

 U.S.A

 January 29, 2036

 12,097,183

 Pharmaceutical Composition for Treating Migraine

 U.S.A

 January 29, 2036

 385725

 Pharmaceutical Composition Comprising Sumatriptan for Treating Migraine

 February 1, 2036

 2994748

 Pharmaceutical Composition Comprising Sumatripan for Treating Migraine

 February 1, 2036

 CD40 and anti-CD154 Therapeutics

 Title

 3993876

 (E1717312 in Austria; P20241602 in Croatia; 602020036714.4
in Germany; 3116977 in Greece; HU/E069680 in Hungary; 502024000056334 in Italy; 66218 in Serbia; 2994684 in Spain; and SM-T-202400527
in San Marino)

 Europe – (Albania, Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Monaco, Netherlands, North Macedonia, Norway, Poland, Portugal, Romania, San Marino, Serbia, Slovenia, Slovakia, Spain, Sweden, Switzerland, Turkey, United Kingdom)

 July 1, 2040

 CBP - ASD and PTSD

 Title

 420368

 August 20, 2039

 Pending Patent Applications

 Our current pending patent applications
are as follows:

 CD40 and anti-CD154 Therapeutics

 Title

 17/623,710

 2020300002

 BR112021026410-8

 BR122024022801-7

 3145453

 202080059891.1

 Anti-CD154 antibodies and uses thereof (Allowed)

 China

 24195755.4

 202217004870

 India

 P00202200763

 289354

 2021-578262

 Japan

 PI 2021007835

 PI 2024006778

 MX/a/2022/000133

 784548

 11202114433Y

 2022/01378

 2024/09160

 62022063693.5

 Anti-CD154 antibodies and uses thereof (Allowed)

 62022062573.0

 18/271,098

 2022205313

 BR112023013285-1

 3207098

 202280019221.6

 China

 22701768.8

 P00202307159

 304253

 2023-541043

 Japan

 PI 2023003993

 MX/a/2023/008055

 801414

 11202305000R

 2023/06791

 62024090562.5

 62024091450.2

 3136725

 Inhibitors of CD40-CD154 Binding

 2021-560713

 Inhibitors of CD40-CD154 Binding

 Japan

 17/603,260

 Inhibitors of CD40-CD154 Binding

 202080033531.4

 Inhibitors of CD40-CD154 Binding

 China

 CBP/Amitriptyline Eutectic Formulations

 Title

 18/385,468

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 BR112017005231-8

 BR122020020968-2

 2,961,822

 15841528.1

 18101200.4

 2023-188486

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 Japan

 2023-116057

 Japan

 Title

 PI 2023000078

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 517381123

 10201707528W

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 10201902203V

 2014-000391

 Eutectic Formulations of Cyclobenzaprine Hydrochloride and Amitriptyline Hydrochloride

 Venezuela

 Sublingual CBP/Amitriptyline

 Title

 13/918,692

 P20130102101

 20230100254

 202010024102.2

 China

 2013/24661

 Gulf Cooperation
 Council

 2013/37088

 Gulf Cooperation
 Council

 2013/40660

 Gulf Cooperation
 Council

 42020020336.2

 P-00 2021 01421

 2024-14696

 Japan

 10202401383X

 CBP – Agitation in Neurodegenerative
Condition

 Title

 2018383098

 Cyclobenzaprine Treatment for Agitation, Psychosis and Cognitive Decline in Dementia and Neurodegenerative Conditions (Allowed)

 BR112020011345-0

 Cyclobenzaprine Treatment for Agitation, Psychosis and Cognitive Decline in Dementia and Neurodegenerative Conditions

 201880079917.1

 Cyclobenzaprine Treatment for Agitation, Psychosis and Cognitive Decline in Dementia and Neurodegenerative Conditions

 China

 18847270.8

 Cyclobenzaprine Treatment for Agitation, Psychosis and Cognitive Decline in Dementia and Neurodegenerative Conditions

 P00202004178

 Cyclobenzaprine Treatment for Agitation, Psychosis and Cognitive Decline in Dementia and Neurodegenerative Conditions

 202017023747

 Cyclobenzaprine Treatment for Agitation, Psychosis and Cognitive Decline in Dementia and Neurodegenerative Conditions

 India

 2020-531611

 Cyclobenzaprine Treatment for Agitation, Psychosis and Cognitive Decline in Dementia and Neurodegenerative Conditions

 Japan

 62020022462.9

 Cyclobenzaprine Treatment for Agitation, Psychosis and Cognitive Decline in Dementia and Neurodegenerative Conditions

 62021029558.5

 Cyclobenzaprine Treatment for Agitation, Psychosis and Cognitive Decline in Dementia and Neurodegenerative Conditions

 42024101171.7

 Cyclobenzaprine Treatment for Agitation, Psychosis and Cognitive Decline in Dementia and Neurodegenerative Conditions

 10202303446R

 Cyclobenzaprine Treatment for Agitation, Psychosis and Cognitive Decline in Dementia and Neurodegenerative Conditions

 2023-186441

 Cyclobenzaprine Treatment for Agitation, Psychosis and Cognitive Decline in Dementia and Neurodegenerative Conditions

 Japan

 202410396685.X

 Cyclobenzaprine Treatment for Agitation, Psychosis and Cognitive Decline in Dementia and Neurodegenerative Conditions

 China

 Analogs of CBP

 Title

 18/950,382

 3069699

 201880050758.2

 18831505.5

 China

 2024-027046

 Japan

 CBP – ASD and PTSD

 Title

 2019/38140

 108129709

 17/269,106

 2019323764

 PI2021000802

 772889

 813830

 BR112021003107-3

 3109258

 201980062283.3

 China

 202510112547.9

 China

 19802247.7

 62021045278.0

 62022046260.5

 202117011223

 India

 P00202101716

 280921

 Cyclobenzaprine or Amitriptyline Containing Compositions for Use in Treating Stress Disorders

 2021-509201

 Japan

 2025-32822

 Japan

 10-2024-02502Q

 2021/01121

 CBP – Fibromyalgia

 Title

 18/265,525

 2021396509

 3204202

 202180089897.8

 China

 21844438.8

 62024089847.3

 62024090216.8

 202317044026

 India

 P00202306147

 303497

 2023-542924

 Japan

 PI 2023003286

 MX/a/2023/006720

 800700

 523441103

 524462219

 10202403823V

 2023/06139

 CBP – Fibromyalgia (Early Onset Response, Favorable
Tolerability, and Side Effect Profile)

 Title

 PCT/US2024/061125

 Early Onset Response, Favorable Tolerability, and Side Effect Profile in the Treatment of Fibromyalgia

 PCT

 18/988,194

 Early Onset Response, Favorable Tolerability, and Side Effect Profile in the Treatment of Fibromyalgia

 CBP – Acute Stress Reaction or Acute Stress Disorder

 Title

 PCT/US2025/012803

 Cyclobenzaprine Treatment for Acute Stress Reaction or Acute Stress Disorder

 PCT

 CBP – Alcohol Use Disorder

 Title

 18/037,815

 2021382668

 112023009731-2

 3202722

 202180088339.X

 China

 21827298.7

 62024087606.5

 62024089500.8

 202317038485

 India

 303050

 2023-530204

 Japan

 MX/a/2023/005899

 800112

 11202303835Y

 2023/05747

 CBP – Sexual dysfunction

 Title

 17/226,058

 U.S.A

 2021253592

 3179754

 202180040673.8

 Cyclobenzaprine Treatment for Sexual Dysfunction (Allowed)

 China

 21721779.3

 2022-562023

 Japan

 62023077251.4

 62023078964.1

 62025103395.2

 18/698,483

 Cyclobenzaprine for Treatment or Prevention of Sexual Dysfunction Associated with Mental Health Conditions in Female Patients

 22800445.3

 Cyclobenzaprine for Treatment or Prevention of Sexual Dysfunction Associated with Mental Health Conditions in Female Patients

 CBP – Post-Acute Sequelae of SARS-CoV-2 (PASC)

 Title

 18/212,500

 Cyclobenzaprine Treatment for Post-Acute Sequelae of (SARS)-CoV-2 Infection (PASC)

 2023286504

 Cyclobenzaprine Treatment for Post-Acute Sequelae of (SARS)-CoV-2 Infection (PASC)

 36260042

 Cyclobenzaprine Treatment for Post-Acute Sequelae of (SARS)-CoV-2 Infection (PASC)

 Not Yet Assigned

 Cyclobenzaprine Treatment for Post-Acute Sequelae of (SARS)-CoV-2 Infection (PASC)

 China

 23744274.4

 Cyclobenzaprine Treatment for Post-Acute Sequelae of (SARS)-CoV-2 Infection (PASC)

 317836

 Cyclobenzaprine Treatment for Post-Acute Sequelae of (SARS)-CoV-2 Infection (PASC)

 2024-575083

 Cyclobenzaprine Treatment for Post-Acute Sequelae of (SARS)-CoV-2 Infection (PASC)

 Japan

 MX/a/2025/000142

 Cyclobenzaprine Treatment for Post-Acute Sequelae of (SARS)-CoV-2 Infection (PASC)

 817589

 Cyclobenzaprine Treatment for Post-Acute Sequelae of (SARS)-CoV-2 Infection (PASC)

 2025/00293

 Cyclobenzaprine Treatment for Post-Acute Sequelae of (SARS)-CoV-2 Infection (PASC)

 Oxytocin therapeutics

 Title

 2024203428

 BR122024008322-1

 2972975

 42024096348.8

 23201255.9

 2024-33983

 Japan

 18/621,985

 19710979.6

 2020-545532

 Japan

 2024-9405

 Japan

 18/921,777

 3,020,179

 Magnesium-Containing Oxytocin Formulations and Methods of Use (Allowed)

 2023100344997

 China

 24214056.4

 2024-196703

 Japan

 747221

 787097

 2023203831

 42023079422.4

 MX/a/2023/008840

 Nociceptin/Orphanin FQ therapeutics

 Title

 BR122021007932-3

 Methods for Treatment of Pain

 Title

 17/827,320

 P 20170103043

 2017/34209

 2017/41626

 106137976

 Synthetic Chimeric Poxviruses (Allowed)

 BR112019008781-8

 3,042,694

 17868045.0

 201917021814

 PID201904682

 India

 266399

 2019-545700

 Synthetic Chimeric Poxviruses (Allowed)

 Japan

 2024-93677

 Japan

 752893

 11201903893P

 2024/03393

 2017-000418

 Venezuela

 62020003684.1

 792675

 P00202402600

 113144133

 Taiwan

 Synthetic Vaccinia Virus

 Title

 2019/37492

 2019/41458

 20190101165

 108115290

 17/050,946

 2019262149

 BR112020022181-3

 3099330

 201980029677.9

 China

 19796145.1

 202017052398

 India

 P00202008694

 278419

 2024-28557

 Japan

 PI 2020005696

 MX/a/2020/011586

 768999

 10202401171Y

 2020/06350

 62021036744.2

 62021038254.0

 PI 2024003859

 810669

 Poxvirus vaccine against COVID-19

 Title

 17/187,678

 110107179

 Taiwan

 20210100512

 1202200348

 African Intellectual Property Organization

 AP/P/2022/014318

 African Regional Intellectual Property Organization

 2021226592

 BR112022016992-2

 3173996

 202180027983.6

 China

 202292431

 Eurasian Patent Office

 21715007.7

 202217053476

 India

 P00202210244

 295925

 2022-551297

 Japan

 PI 2022004613

 MX/a/2022/010588

 791924

 10-2022-7033014

 Republic of Korea

 522440323

 2022/09895

 523451920

 62023075022.1

 62023083678.0

 TFF2 therapeutics

 Title

 17/638,761

 2020338947

 3152665

 202080071768.1

 China

 20781063.1

 202217016249

 India

 290910

 2022-513154

 Japan

 MX/a/2022/002337

 786004

 2022/03355

 62023066535.3

 62023066928.0

 Antiviral Drugs – Cathepsin Inhibitors

 Title

 18/055,596

 Compositions and Methods for Increasing Efficacy of a Drug

 2022-569505

 Compositions and Methods for Increasing Efficacy of a Drug

 Japan

 202217072271

 Compositions and Methods for Increasing Efficacy of a Drug

 India

 62023079383.3

 Compositions and Methods for Increasing Efficacy of a Drug

 Triptan Compound – Formulations

 Title

 18/782,922

 Triptan Compound – Migraine

 Title

 18/797,812

 Methods of Treating Migraine

 18/783,734

 Pharmaceutical Composition for Treating Migraine

 Tianeptine – Conditions Associated with Peroxisome
Proliferator-Activated Receptor

 Title

 PCT/US2024/021799

 (S)-Tianeptine and Use in Treating Disorders and Conditions Associated with Peroxisome Proliferator-Activated Receptor

 PCT

 Trademarks and Service Marks

 Tonix Pharmaceuticals, Inc.

 We seek trademark and
service mark protection in the United States and outside of the United States where available and when appropriate. We are the
owner of the following U.S. federally registered mark: TONIX PHARMACEUTICALS (Reg. No. 4656463, issued December 16, 2014).

 We are the owner of the following
marks for which applications for U.S. federal registration are currently pending: FYMRALIN (Serial No. 98/327953, filed December 22, 2023),
MODALTIN (Serial No. 97/424052, filed May 23, 2022), RAPONTIS (Serial No. 97/424058, filed May 23, 2022), PROTECTIC (Serial No. 97/424071,
filed May 23, 2022), TONIX PHARMACEUTICALS (Serial No. 98/577945, filed May 31, 2024), ANGSTRO-TECHNOLOGY (Serial No. 98/006538, filed
May 22, 2023) and TNX-102 SL (Serial No. 97/185424, filed December 22, 2021).

 Tonix Medicines, Inc.

 We seek trademark and service mark protection in the United States
and outside of the United States where available and when appropriate. We are the owner of the following U.S. federally registered marks:
NOTIME4MIGRAINES (Reg. No. 5392512, issued January 30, 2018); SYMTOUCH (Reg. No. 5186988, issued April 18, 2017); TOSYMRA (Reg. No. 5981221,
issued February 11, 2020); TOSYMRA & DROPLET Design (Reg. No. 6142333, issued August 11, 2020); ZEMBRACE (Reg. No. 5186989, issued
April 18, 2017); ZEMBRACE SYMTOUCH (Reg. No.5478282, issued May 29, 2018); DROPLET Design (Reg. No. 6117797, issued August 4, 2020); TONIX
ONE LOGO Design (Serial No. 99/057051, filed February 26, 2025). We are the owner of the following International Registrations under the
Madrid Protocol: TOSYMRA (Reg. No. 1501060, issued October 16, 2019 – Extensions of Protection to: Canada, European Union, Japan,
Republic of Korea, United Kingdom); ZEMBRACE (Reg. No. 1683288, issued August 17, 2022 – Extensions of Protection to: Canada (still
pending), China, European Union, Israel, Mexico, United Kingdom); DROPLET Design (Reg. No. 1545038, issued June 29, 2020 – Extensions
of Protection to: Canada, European Union, Israel, Japan, Norway, Republic of Korea, Switzerland, Turkey, United Kingdom); European Union:
TONIX ONE LOGO Design (Application No. 19151272, filed March 4, 2025).

 Research and Development

 We have approximately
45 employees dedicated to research and development. Our research and development operations are located in Chatham, NJ, Frederick, Maryland, Dublin, Ireland and Montreal, Canada. We have used, and expect to continue to use, third parties to conduct
our nonclinical and clinical studies.

 Marketing

 We have nine employees
supporting sales administration and marketing initiatives. We also have three sales employees who are focused
on customer service requests and top-tier headache specialists. We utilize third party vendors to support trade, managed
markets, marketing initiatives, and promotional compliance programs.

 Manufacturing

 We have contracted
with third-party cGMP-compliant contract manufacturer organizations("CMOs"), for the manufacture of TNX-102 SL drug
substance and drug products for clinical and commercial supply. Our manufacturing operations are managed and controlled out of
our Dublin, Ireland offices.

 All of our small molecules
drug candidates are synthesized using industry standard processes, and our drug products are formulated using commercially available
pharmaceutical grade excipients.

 We own a 45,000 square foot facility in Massachusetts, to house our new
Advanced Development Center for accelerated development and manufacturing of vaccines and biologics. This facility is currently decommissioned.
It was designed for the manufacture of nonclinical and clinical investigational products for our Infectious Disease portfolio. The current
focus of which is TNX-801 a Smallpox and Mpox Preventing Vaccine and TNX-1800 a COVID vaccine selected by NIH/NIAID Project NextGen for
Inclusion in Clinical Trials. This facility was decommissioned in 2024 but Tonix has the ability to reactivate it should we choose to
do so.

 Our two marketed products,
Zembrace and Tosymra, are manufactured at cGMP compliant, FDA audited, U.S. based CMOs with expertise in pre-filled syringe and
inhalation expertise.

 Government Regulations

 The FDA and other federal,
state, local and foreign regulatory agencies impose substantial requirements upon the clinical development, approval, labeling,
manufacture, marketing and distribution of drug products. These agencies regulate, among other things, research and development
activities and the testing, approval, manufacture, quality control, safety, effectiveness, labeling, storage, record keeping, advertising
and promotion of our product candidates. The regulatory approval process is generally lengthy and expensive, with no guarantee
of a positive result. Moreover, failure to comply with applicable requirements by the FDA or other requirements may result in civil
or criminal penalties, recall or seizure of products, injunctive relief including partial or total suspension of production, or
withdrawal of a product from the market.

 The FDA regulates,
among other things, the research, manufacture, promotion and distribution of drugs in the U.S. under the FDCA and other statutes
and implementing regulations. The process required by the FDA before prescription drug product candidates may be marketed in the
U.S. generally involves the following:

 completion of extensive nonclinical laboratory tests, animal studies and formulation studies, all performed in accordance with the FDA's Good Laboratory Practice regulations;

 submission to the FDA of an IND, which must become effective before human clinical trials may begin;

 performance of adequate and well-controlled human clinical trials in accordance with the FDA's regulations, including Good Clinical Practices, to establish the safety and efficacy of the product candidate for each proposed indication;

 submission to the FDA of an NDA for drug products, or a Biologics License Application, or BLA, for biologic products;

 satisfactory completion of a preapproval inspection by the FDA of the manufacturing facilities at which the product is produced to assess compliance with cGMP regulations; and

 the FDA's review and approval of the NDA or BLA prior to any commercial marketing, sale or shipment of the drug.

 The testing and approval
process requires substantial time, effort and financial resources, and we cannot be certain that any approvals for our product
candidates will be granted on a timely basis, if at all.

 Nonclinical tests include
laboratory evaluations of product chemistry, formulation and stability, as well as studies to evaluate toxicity in animals and
other animal studies. The results of nonclinical tests, together with manufacturing information and analytical data, are submitted
as part of an IND to the FDA. Some nonclinical testing may continue even after an IND is submitted. The IND also includes one or
more protocols for the initial clinical trial or trials and an investigator's brochure. An IND automatically becomes effective
30 days after receipt by the FDA, unless the FDA, within the 30-day time period, raises concerns or questions relating to the proposed
clinical trials as outlined in the IND and places the clinical trial on a clinical hold. In such cases, the IND sponsor and the
FDA must resolve any outstanding concerns or questions before any clinical trials can begin. Clinical trial holds also may be imposed
at any time before or during studies due to safety concerns or non-compliance with regulatory requirements. An independent Institutional
Review Board, or IRB, at each of the clinical centers proposing to conduct the clinical trial must review and approve the plan
for any clinical trial before it commences at that center. An IRB considers, among other things, whether the risks to individuals
participating in the trials are minimized and are reasonable in relation to anticipated benefits. The IRB also approves the consent
form signed by the trial participants and must monitor the study until completed.

 Clinical Trials

 Clinical trials involve
the administration of the product candidate to human subjects under the supervision of qualified medical investigators according
to approved protocols that detail the objectives of the study, dosing procedures, subject selection and exclusion criteria, and
the parameters to be used to monitor participant safety. Each protocol for a U.S. study is submitted to the FDA as part of the
IND.

 Human clinical trials
are typically conducted in three sequential phases, but the phases may overlap, or be combined.

 Phase 1 clinical trials typically involve the initial introduction of the product candidate into healthy human volunteers. In Phase 1 clinical trials, the product candidate is typically tested for safety, dosage tolerance, absorption, metabolism, distribution, excretion and pharmacodynamics.

 Phase 2 clinical trials are generally conducted in a limited patient population to gather evidence about the efficacy of the product candidate for specific, targeted indications; to determine dosage tolerance and optimal dosage; and to identify possible adverse effects and safety risks. Phase 2 clinical trials, in particular Phase 2b trials, can be undertaken to evaluate clinical efficacy and to test for safety in an expanded patient population at geographically dispersed clinical trial sites.

 Phase 3 clinical trials are undertaken to evaluate clinical efficacy and to test for safety in an expanded patient population at geographically dispersed clinical trial sites. The size of Phase 3 clinical trials depends upon clinical and statistical considerations for the product candidate and disease. Phase 3 clinical trials are intended to establish the overall risk-benefit ratio of the product candidate and provide an adequate basis for product labeling.

 Post-approval clinical
trials, sometimes referred to as Phase 4 clinical trials, may be conducted after initial approval. These clinical trials are used
to gain additional experience from the treatment of patients in the intended therapeutic indication, particularly for long-term
safety follow-up.

 Clinical testing must
satisfy the extensive regulations of the FDA. Reports detailing the results of the clinical trials must be submitted at least annually
to the FDA and safety reports must be submitted for serious and unexpected adverse events. Success in early-stage clinical trials
does not assure success in later-stage clinical trials. The FDA, an IRB or we may suspend a clinical trial at any time on various
grounds, including a finding that the research subjects or patients are being exposed to an unacceptable health risk.

 New Drug Applications

 Assuming successful
completion of the required clinical trials, the results of product development, nonclinical studies and clinical trials are submitted
to the FDA as part of an NDA (or BLA, in the case of a biologic product). An NDA or BLA also must contain extensive manufacturing
information, as well as proposed labeling for the finished product. An NDA or BLA applicant must develop information about the
chemistry and physical characteristics of the drug and finalize a process for manufacturing the product in accordance with cGMP.
The manufacturing process must be capable of consistently producing quality product within specifications approved by the FDA.
The manufacturer must develop methods for testing the quality, purity and potency of the final product. In addition, appropriate
packaging must be selected and tested, and stability studies must be conducted to demonstrate that the product does not undergo
unacceptable deterioration over its shelf life. Prior to approval, the FDA will conduct an inspection of the manufacturing facilities
to assess compliance with cGMP.

 The FDA reviews all
NDAs and BLAs submitted before it accepts them for filing. The FDA may request additional information rather than accept an NDA
for filing. In this event, the NDA or BLA must be resubmitted with the additional information and is subject to review before the
FDA accepts it for filing. After an application is filed, the FDA may refer the NDA or BLA to an advisory committee for review,
evaluation and recommendation as to whether the application should be approved and under what conditions. The FDA is not bound
by the recommendations of an advisory committee, but it considers them carefully when making decisions. The FDA may deny approval
of an NDA or BLA if the applicable regulatory criteria are not satisfied. Data obtained from clinical trials are not always conclusive
and the FDA may interpret data differently than we interpret the same data.

 The FDA may issue a
complete response letter, which may require additional clinical or other data or impose other conditions that must be met in order
to secure final approval of the NDA or BLA. If a product receives regulatory approval, the approval may be significantly limited
to specific diseases and dosages or the indications for use may otherwise be limited, which could restrict the commercial value
of the product. In addition, the FDA may require us to conduct Phase 4 testing which involves clinical trials designed to further
assess a drug's safety and effectiveness after NDA or BLA approval, and may require surveillance programs to monitor the
safety of approved products which have been commercialized. Once issued, the FDA may withdraw product approval if ongoing regulatory
requirements are not met or if safety or efficacy questions are raised after the product reaches the market.

 Section 505(b)
NDAs

 There are two types of NDAs: the Section 505(b)(1) NDA, or full NDA, and
the Section 505(b)(2) NDA. A full NDA is submitted under Section 505(b)(1) of the FDCA, and must contain full reports of investigations
conducted by the applicant to demonstrate the safety and effectiveness of the drug. A Section 505(b)(2) NDA may be submitted for a drug
for which one or more of the investigations relied upon by the applicant was not conducted by or for the applicant and for which the applicant
has no right of reference from the person by or for whom the investigations were conducted. A Section 505(b)(2) NDA may be submitted based
in whole or in part on published literature or on the FDA's finding of safety and efficacy of one or more previously approved drugs,
which are known as reference drugs. Thus, the filing of a Section 505(b)(2) NDA may result in approval of a drug based on fewer clinical
or nonclinical studies than would be required under a full NDA. The number and size of studies that need to be conducted by the sponsor
depends on the amount and quality of data pertaining to the reference drug that are publicly available, and on the similarity of and differences
between the applicant's drug and the reference drug. In some cases, extensive, time-consuming, and costly clinical and nonclinical
studies may still be required for approval of a Section 505(b)(2) NDA.

 Our drug approval strategy for our new formulations of approved chemical
entities is to submit Section 505(b)(2) NDAs to the FDA. We submitted NDA under Section 505(b)(2) for TNX-102 SL for FM, and plan to submit
an 505(b)(2)for TNX-2900 for Prader Willi Syndrome. The FDA may not agree that these product candidates are approvable as a Section 505(b)(2)
NDA. If the FDA determines that a Section 505(b)(2) NDA is not appropriate and that a full NDA is required, the time and financial resources
required to obtain FDA approval could substantially and materially increase and be less likely to be approved. If the FDA requires a full
NDA or requires more extensive testing and development for some other reason, our ability to compete with alternative products that arrive
on the market more quickly than our product candidates would be adversely impacted. If reference listed products are withdrawn from the
market by the FDA for a safety reason, we may not be able to reference such products to support our anticipated 505(b)(2) NDAs, and we
may be required to follow the requirements of Section 505(b)(1).

 Patent Protections

 An applicant submitting
a Section 505(b)(2) NDA must certify to the FDA with respect to the patent status of the reference drug upon which the applicant
relies in support of approval of its drug. With respect to every patent listed in the FDA's Orange Book, which is the FDA's
list of approved drug products, as claiming the reference drug or an approved method of use of the reference drug, the Section
505(b)(2) applicant must certify that: (1) there is no patent information listed in the orange book for the reference drug; (2)
the listed patent has expired; (3) the listed patent has not expired, but will expire on a particular date; (4) the listed patent
is invalid or will not be infringed by the manufacture, use, or sale of the product in the Section 505(b)(2) NDA; or (5) if the
patent is a use patent, that the applicant does not seek approval for a use claimed by the patent. If the applicant files a certification
to the effect of clause (1), (2) or (5), FDA approval of the Section 505(b)(2) NDA may be made effective immediately upon successful
FDA review of the application, in the absence of marketing exclusivity delays, which are discussed below. If the applicant files
a certification to the effect of clause (3), the Section 505(b)(2) NDA approval may not be made effective until the expiration
of the relevant patent and the expiration of any marketing exclusivity delays.

 If the Section 505(b)(2)
NDA applicant provides a certification to the effect of clause (4), referred to as a paragraph IV certification, the applicant
also must send notice of the certification to the patent owner and the holder of the NDA for the reference drug. The filing of
a patent infringement lawsuit within 45 days of the receipt of the notification may prevent the FDA from approving the Section
505(b)(2) NDA for 30 months from the date of the receipt of the notification unless the court determines that a longer or shorter
period is appropriate because either party to the action failed to reasonably cooperate in expediting the action. However, the
FDA may approve the Section 505(b)(2) NDA before the 30 months have expired if a court decides that the patent is invalid or not
infringed, or if a court enters a settlement order or consent decree stating the patent is invalid or not infringed.

 Notwithstanding
the approval of many products by the FDA pursuant to Section 505(b)(2), over the last few years certain brand-name pharmaceutical
companies and others have objected to the FDA's interpretation of Section 505(b)(2). If the FDA's interpretation of
Section 505(b)(2) is successfully challenged in court, the FDA may be required to change its interpretation of Section 505(b)(2)
which could delay or even prevent the FDA from approving any Section 505(b)(2) NDA that we submit. The pharmaceutical industry
is highly competitive, and it is not uncommon for a manufacturer of an approved product to file a citizen petition with the FDA
seeking to delay approval of, or impose additional approval requirements for, pending competing products. If successful, such petitions
can significantly delay, or even prevent, the approval of the new product. Moreover, even if the FDA ultimately denies such a petition,
the FDA may substantially delay approval while it considers and responds to the petition.

 Marketing Exclusivity

 Market exclusivity
provisions under the FDCA can delay the submission or the approval of Section 505(b)(2) NDAs, thereby delaying a Section 505(b)(2)
product from entering the market. The FDCA provides five-year marketing exclusivity to the first applicant to gain approval of
an NDA for an NCE, meaning that the FDA has not previously approved any other drug containing the same active moiety. This exclusivity
prohibits the submission of a Section 505(b)(2) NDA for any drug product containing the active ingredient during the five-year
exclusivity period. However, submission of a Section 505(b)(2) NDA that certifies that a listed patent is invalid, unenforceable,
or will not be infringed, as discussed above, is permitted after four years, but if a patent infringement lawsuit is brought within
45 days after such certification, FDA approval of the Section 505(b)(2) NDA may automatically be stayed until 7 years after
the NCE approval date. The FDCA also provides three years of marketing exclusivity for the approval of new and supplemental NDAs
for product changes, including, among other things, new indications, dosage forms, routes of administration or strengths of an
existing drug, or for a new use, if new clinical investigations, other than bioavailability studies, that were conducted or sponsored
by the applicant are deemed by FDA to be essential to the approval of the application.

 Five-year and three-year
exclusivity will not delay the submission or approval of another full NDA; however, as discussed above, an applicant submitting
a full NDA under Section 505(b)(1) would be required to conduct or obtain a right of reference to all of the nonclinical and adequate
and well-controlled clinical trials necessary to demonstrate safety and effectiveness.

 Other types of exclusivities
in the United States include orphan drug exclusivity and pediatric exclusivity. The FDA may grant orphan drug designation to a
drug intended to treat a rare disease or condition, which is generally a disease or condition that affects fewer than 200,000 individuals
in the United States, or more than 200,000 individuals in the United States and for which there is no reasonable expectation that
the cost of developing and making available in the United States a drug for this type of disease or condition will be recovered
from sales in the United States for that drug. Seven-year orphan drug exclusivity is available to a product that has orphan drug
designation and that receives the first FDA approval for the indication for which the drug has such designation. Orphan drug exclusivity
prevents approval of another application for the same drug for the same orphan indication, for a period of seven years, regardless
of whether the application is a full NDA or a Section 505(b)(2) NDA, except in limited circumstances, such as a showing of clinical
superiority to the product with orphan exclusivity. Pediatric exclusivity, if granted, provides an additional six months to an
existing exclusivity or statutory delay in approval resulting from a patent certification. This six-month exclusivity, which runs
from the end of other exclusivity protection or patent delay, may be granted based on the voluntary completion of a pediatric study
in accordance with an FDA-issued "Written Request" for such a study.

 Section 505(b)(2) NDAs
are similar to full NDAs filed under Section 505(b)(1) in that they are entitled to any of these forms of exclusivity if they meet
the qualifying criteria. They also are entitled to the patent protections described above, based on patents that are listed in
the FDA's Orange Book in the same manner as patents claiming drugs and uses approved for NDAs submitted as full NDAs.

 Breakthrough Therapy Designation

 The Food and Drug Administration
Safety and Innovation Act, or FDASIA, Section 902 provides for Breakthrough Therapy designation. A Breakthrough Therapy is a drug:

 intended alone or in combination with one or more other drugs to treat a serious or life-threatening disease or condition; and

 preliminary clinical evidence indicates that the drug may demonstrate substantial improvement over existing therapies on one or more clinically significant endpoints, such as substantial treatment effects observed early in clinical development.

 Fast Track Designation

 A Fast Track is a designation
by the FDA of an investigational drug which:

 intended alone or in combination with one or more other drugs to treat a serious or life-threatening disease or condition; and

 non-clinical or clinical data demonstrate the potential to address an unmet medical need

 Fast
track is a process designed to facilitate the development and expedite the review of drugs to treat serious conditions and fill
an unmet medical need. The benefits of a Fast Track designation include rolling submission of portions of the NDA for the drug
candidate and eligibility for priority review of the NDA. Additionally, more frequent meetings and written communication with the
FDA regarding the development plan and trial design for the drug candidate are encouraged throughout the entire drug development
and review process, with the goal of having earlier drug approval and access for patients.

 Material Threat Medical Countermeasures

 In 2016, the 21 st
 Century Cures Act, or Act, was signed into law to support ongoing biomedical innovation. One part of the Act, Section 3086,
is aimed at "Encouraging Treatments for Agents that Present a National Security Threat." The Act created a new priority
review voucher program for approved "material threat medical countermeasure applications." The Act defines such countermeasures
as drug or biological products, including vaccines intended to treat biological, chemical, radiological, or nuclear agents that
present a national security threat or to treat harm from a condition that may be caused by administering a drug or biological product
against such an agent. The Department of Homeland Security has identified 13 such threats, including anthrax, smallpox, Ebola/Marburg,
tularemia, botulinum toxin, and pandemic influenza, which includes SARS-CoV-2.

 Other Regulatory Requirements

 Maintaining substantial
compliance with appropriate federal, state and local statutes and regulations requires the expenditure of substantial time and
financial resources. Drug manufacturers are required to register their establishments with the FDA and certain state agencies,
and after approval, the FDA and these state agencies conduct periodic unannounced inspections to ensure continued compliance with
ongoing regulatory requirements, including cGMPs. In addition, after approval, some types of changes to the approved product, such
as adding new indications, manufacturing changes and additional labeling claims, are subject to further FDA review and approval.
The FDA may require post-approval testing and surveillance programs to monitor safety and the effectiveness of approved products
that have been commercialized. Any drug products manufactured or distributed by us pursuant to FDA approvals are subject to continuing
regulation by the FDA, including:

 record-keeping requirements;

 reporting of adverse experiences with the drug;

 providing the FDA with updated safety and efficacy information;

 reporting on advertisements and promotional labeling;

 drug sampling and distribution requirements; and

 complying with electronic record and signature requirements.

 In addition, the FDA
strictly regulates labeling, advertising, promotion and other types of information on products that are placed on the market. There
are numerous regulations and policies that govern various means for disseminating information to health-care professionals as well
as consumers, including to industry sponsored scientific and educational activities, information provided to the media and information
provided over the Internet. Drugs may be promoted only for the approved indications and in accordance with the provisions of the
approved label.

 The FDA has very broad
enforcement authority and the failure to comply with applicable regulatory requirements can result in administrative or judicial
sanctions being imposed on us or on the manufacturers and distributors of our approved products, including warning letters, refusals
of government contracts, clinical holds, civil penalties, injunctions, restitution and disgorgement of profits, recall or seizure
of products, total or partial suspension of production or distribution, withdrawal of approvals, refusal to approve pending applications,
and criminal prosecution resulting in fines and incarceration. The FDA and other agencies actively enforce the laws and regulations
prohibiting the promotion of off-label uses, and a company that is found to have improperly promoted off-label uses may be subject
to significant liability. In addition, even after regulatory approval is obtained, later discovery of previously unknown problems
with a product may result in restrictions on the product or even complete withdrawal of the product from the market.

 Coverage
and Reimbursement

 Sales
of our product candidates, if approved, will depend, in part, on the extent to which such products will be covered by third-party
payors, such as government health care programs, commercial insurance and managed healthcare organizations. These third-party payors
are increasingly limiting coverage or reducing reimbursements for medical products and services. In addition, the U.S. government,
state legislatures and foreign governments have continued implementing cost-containment programs, including price controls, restrictions
on reimbursement and requirements for substitution of generic products. Third-party payors decide which therapies they will pay
for and establish reimbursement levels. Third-party payors often rely upon Medicare coverage policy and payment limitations in
setting their own coverage and reimbursement policies. However, decisions regarding the extent of coverage and amount of reimbursement
to be provided for any drug candidates that we develop will be made on a payor-by-payor basis. Each payor determines
whether or not it will provide coverage for a therapy, what amount it will pay the manufacturer for the therapy, and on what tier
of its formulary it will be placed. The position on a payor's list of covered drugs, or formulary, generally determines the co-payment that
a patient will need to make to obtain the therapy and can strongly influence the adoption of such therapy by patients and physicians.
Adoption of price controls and cost-containment measures, and adoption of more restrictive policies in jurisdictions with existing
controls and measures, could further limit our net revenue and results. Decreases in third-party reimbursement for our product
candidates or a decision by a third-party payor to not cover our product candidates could reduce physician usage of our product
candidates, once approved, and have a material adverse effect on our sales, results of operations and financial condition.

 Other
Healthcare Laws

of our current and future arrangements with healthcare professionals, principal investigators, consultants, customers and third-party
payors, we will also be subject to healthcare regulation and enforcement by the federal government and the states and foreign governments
in which we will conduct our business, including our clinical research, proposed sales, marketing and educational programs. Failure
to comply with these laws, where applicable, can result in the imposition of significant civil penalties, criminal penalties, or
both.

 The
U.S. laws that may affect our ability to operate, among others, include: the federal Health Insurance Portability and Accountability
Act of 1996, or HIPAA, as amended by the Health Information Technology for Economic and Clinical Health Act, which governs the
conduct of certain electronic healthcare transactions and protects the security and privacy of protected health information; certain
state laws governing the privacy and security of health information in certain circumstances, some of which are more stringent
than HIPAA and many of which differ from each other in significant ways and may not have the same effect, thus complicating compliance
efforts; the federal healthcare programs' Anti-Kickback Statute, which prohibits, among other things, persons from knowingly
and willfully soliciting, receiving, offering or paying remuneration, directly or indirectly, in exchange for or to induce either
the referral of an individual for, or the purchase, order or recommendation of, any good or service for which payment may be made
under federal healthcare programs such as the Medicare and Medicaid programs; federal false claims laws which prohibit, among other
things, individuals or entities from knowingly presenting, or causing to be presented, claims for payment from Medicare, Medicaid,
or other third-party payors that are false or fraudulent; federal criminal laws that prohibit executing a scheme to defraud any
healthcare benefit program or making false statements relating to healthcare matters; the Physician Payments Sunshine Act, which
requires manufacturers of drugs, devices, biologics, and medical supplies to report annually to the U.S. Department of Health and
Human Services information related to payments and other transfers of value to physicians (defined to include doctors, dentists,
optometrists, podiatrists and chiropractors) and teaching hospitals, and ownership and investment interests held by physicians
and their immediate family members; and state law equivalents of each of the above federal laws, such as anti-kickback and false
claims laws which may apply to items or services reimbursed by any third-party payor, including commercial insurers.

 In addition, many states
have similar laws and regulations, such as anti-kickback and false claims laws that may be broader in scope and may apply regardless
of payor, in addition to items and services reimbursed under Medicaid and other state programs. Additionally, to the extent that
our product is sold in a foreign country, we may be subject to similar foreign laws.

 The Impact of New Legislation and Amendments to Existing
Laws

 The FDCA is subject
to routine legislative amendments with a broad range of downstream effects. In addition to new legislation, such as the FDA Reauthorization
Act of 2017 or the FDASIA in 2012, Congress introduces amendments to reauthorize drug user fees and address emerging concerns every
five years. We cannot predict the impact of these new legislative acts and their implementation of regulations on our business.
The programs established or to be established under the legislation may have adverse effects upon us, including increased regulation
of our industry. Compliance with such regulation may increase our costs and limit our ability to pursue business opportunities.
In addition, the FDA's regulations, policies and guidance are often revised or reinterpreted by the agency or the courts
in ways that may significantly affect our business and our products.

 We
expect that additional federal and state, as well as foreign, healthcare reform measures will be adopted in the future, any of
which could result in reduced demand for our products or additional pricing pressure.

 Human Capital Resources

 As of March 17, 2025, we had 81 full-time employees, of whom 12 hold M.D.
or Ph. D. degrees. We have 45 employees dedicated to research and development. We have two employees supporting sales administration and
marketing initiatives and three sales employees who are focused on customer service requests and top-tier headache specialists. None of
our employees are represented by a collective bargaining agreement. We believe that the skills, experience and industry knowledge of our
key employees significantly benefit our operations and performance. Our research and development operations are located in Chatham, New
Jersey, Dartmouth, Massachusetts, Frederick, Maryland, Dublin, Ireland and Montreal, Canada. We have used, and expect to continue to use,
third parties to conduct our nonclinical and clinical studies as well as part-time employees.

 Employee health and
safety in the workplace is one of our core values.

 Employee levels are
managed to align with the pace of business and management believes it has sufficient human capital to operate its business successfully.

 Corporate Information

 We lease the space
for our principal executive offices, which are located at 26 Main Street, Suite 101, Chatham, New Jersey 07928, and our telephone
number is (862) 799 8599. Our website address is www.tonixpharma.com. We do not incorporate the information on our websites into
this annual report, and you should not consider such information part of this annual report.

 We were incorporated
on November 16, 2007 under the laws of the State of Nevada as Tamandare Explorations Inc. On October 11, 2011, we changed our name
to Tonix Pharmaceuticals Holding Corp.

 ITEM 1A – Risk Factors

 Summary of Risk Factors

 Our prospects are dependent on the continued successful commercialization of Tosymra and Zembrace, and on the success of TNX 102-SL.

 We are exposed to cybersecurity and data privacy risks that, if realized, could harm our business.

 We have a history of operating losses and may never reach profitability. We may struggle to continue operations without facing the risk of liquidation, as we don't expect product sales to cover expenses.

 If novel product candidates are successfully developed, it is uncertain they will receive regulatory approval or successful commercialization.

 We are subject to extensive and costly government regulation, and we do not have, and may never obtain, the regulatory approvals we need to market our product candidates.

 Our product candidates may cause serious adverse events or undesirable side effects, which would delay or prevent approval, or lead to market removal, safety warnings, or sales limitations.

 We may be unable to meet our anticipated development and commercialization timelines for approval of any of our product candidates.

 Changes in the U.S. political and regulatory environment could affect
 availability of government funding that we may rely on, or cause delays in the development and approval of our product
 candidates.

 Any grant of priority review status by the FDA may not actually lead to a faster development or regulatory review or approval process, nor assure FDA approval of our product candidates.

 Even if approved, our products may be subject to post-approval regulation or may not be accepted by the market.

 We may use our financial and human resources to pursue research programs or product candidates that are less profitable and have a lower likelihood of success than other programs.

 We may need additional capital, and, if unavailable, we may have to delay or scale-back operations.

 Outbreaks of communicable diseases may materially and adversely affect our business.

 Competition and technological change may make our product candidates and technologies less attractive or obsolete, and our product candidates may face competition sooner than expected.

 Failure to protect our intellectual property rights could negatively affect our development of products.

 We may be involved in lawsuits to protect or enforce our patents, which could be costly.

 If we infringe the rights of third parties, we could suffer adverse effects, including defending against litigation.

 We may experience difficulties managing growth when we ultimately expand our operations. Our future success depends on our ability to retain our current executive officers and other key personnel.

 The failure of third parties to manufacture compounds used our studies, and any approved products for sale at sufficient quantities and at acceptable costs could harm our business.

 Failure by our third-party manufacturers to comply with regulatory guidelines set forth by the FDA could harm the development, approval and commercialization of our product candidates.

 Adverse global conditions, including economic uncertainty, may negatively impact our finances.

 Our internal computer systems may fail or suffer security breaches,
 which could result in a material disruption of our product development programs.

 Corporate and academic collaborators may take actions to undermine the success of our products.

 Data provided by collaborators and others upon which we rely that has not been independently verified could turn out to be false, misleading, or incomplete.

 If we fail to establish marketing, sales and distribution capabilities, we will not be able to create a market for our product candidates.

 Our relationships with customers, physicians, and third-party payors will be subject to federal and state healthcare laws and regulations. If we are unable to comply with such laws, including any newly adopted healthcare legislative reform measures, we could face substantial penalties.

 Coverage and adequate reimbursement may not be available for our current or any future drug candidates, which could make it difficult for us to sell profitably, if approved.

 Obtaining approval to commercialize products outside the U.S. would expose us to international risk.

 We face the risk of product liability claims and may not be able to obtain insurance.

 We use hazardous chemicals in our business which could expose us to costly and time consuming legal claims.

 If we retain collaborative partners and our partners do not satisfy their obligations, we will be unable to develop our partnered product candidates.

 We may be unsuccessful in obtaining a priority review voucher for material threat medical countermeasures.

 Government entities may take actions that directly or indirectly have the effect of limiting opportunities for our vaccines for COVID-19.

 If our technology is ever considered "dual use" technology, it will be subject to limitations on public disclosure or export.

 We face risks in connection with existing and future collaborations with respect to the development, manufacture, and commercialization of our product candidates.

 We face risks in connection with the testing, production and storage of our vaccine product candidates.

 Sales of additional shares of our common stock could cause the price of our common stock to decline, and the issuance of preferred stock may impair the rights of the holders of common stock.

 The market price of our common stock has been extremely volatile and may continue to be. We expect that our quarterly results of operations will fluctuate, which could cause our stock price to decline.

 We could be delisted from Nasdaq, which could harm the liquidity of our stock and our capital raising.

 If we fail to comply with the rules under the Sarbanes-Oxley Act of 2002 related to accounting controls and procedures, our stock price could decline significantly and raising capital could be more difficult.

 Other companies may have difficulty acquiring us, even if doing so would benefit our stockholders, due to provisions under our corporate charter and bylaws, as well as Nevada law.

 The Eighth Judicial District Court of Clark County, Nevada as the sole
 and exclusive forum for certain types of stockholder actions or proceedings, which could limit our stockholders' ability to
 obtain a favorable judicial forum for disputes with us.

 RISKS RELATED TO OUR BUSINESS

 Our prospects are dependent on the
success of TNX-102 SL. To the extent regulatory approval of TNX-102 SL is delayed or not granted or, if approved, TNX-102 SL is
not commercially successful, our business, financial condition and results of operations may be materially adversely affected and
the price of our common stock may decline.

 The research, testing,
manufacturing, labeling, approval, sale, import, export, marketing, and distribution of pharmaceutical product candidates are subject
to extensive regulation by the FDA. We have focused a significant portion of our activities and resources on the development of
TNX-102 SL, and we believe our prospects are also dependent on our ability to obtain regulatory approval for and successfully commercialize
TNX-102 SL in the U.S. The regulatory approval and successful commercialization of TNX-102 SL is subject to many risks, including
those discussed in other risk factors, and TNX-102 SL may not receive approval from the FDA. If the results or timing of regulatory
filings, the regulatory process, regulatory developments, commercialization, or other activities, actions or decisions related
to TNX-102 SL do not meet our or others' expectations, the market price of our common stock could decline significantly.

 The FDA
assigned a PDUFA goal date of August 15, 2025, for a decision on marketing authorization for TNX-102 SL. and retains complete
discretion in deciding whether to approve the NDA for TNX-102 SL, and there are many components to an NDA filing beyond the efficacy
and safety data provided to the FDA. No assurances can be given that the FDA will approve TNX-102 SL for the treatment of FM, or
that if approved, we will successfully commercialize TNX-102 SL.

 Coverage and adequate reimbursement
may not be available for our products, which could make it difficult for us to sell our products profitably.

 Market acceptance and sales of our
products depends in part on the extent to which reimbursement for these drugs and related treatments will be available from third-party
payors, including government health administration authorities, p harmacy benefit managers ("PBMs"), managed
care organizations and other private health insurers. Third-party payors decide which therapies they will pay for and establish reimbursement
levels. Third-party payors often rely upon Medicare coverage policy and payment limitations in setting their own coverage and reimbursement
policies. However, decisions regarding the extent of coverage and amount of reimbursement to be provided for any drug is made on a payor-by-payor basis.
 If PBMs other payers or payer affiliates deny formulary inclusion, impose unfavorable tiering, or require burdensome utilization
management restrictions, patient access to our products could be significantly limited. Moreover, one
payor's determination to provide coverage for a drug does not assure that other payors will also provide coverage, and adequate
reimbursement, for the drug. Additionally, a third-party payor's decision to provide coverage for a therapy does not imply that
an adequate reimbursement rate will be approved. Each payor determines whether or not it will provide coverage for a therapy, what amount
it will pay the manufacturer for the therapy, and on what tier of its formulary it will be placed. The position on a payor's list
of covered drugs, or formulary, generally determines the co-payment that a patient will need to make to obtain the therapy and
can strongly influence the adoption of such therapy by patients and physicians. Patients who are prescribed treatments for their conditions
and providers prescribing such services generally rely on third-party payors to reimburse all or part of the associated healthcare costs.
Patients are unlikely to use our drugs unless coverage is provided and reimbursement is adequate to cover a significant portion of the
cost of our drugs.

 A
primary trend in the U.S. healthcare industry and elsewhere is cost containment. Third-party payors have attempted to control
costs by limiting coverage and the amount of reimbursement for particular medications. We cannot be sure that coverage and reimbursement
will be available or continue to be available for any drug that we commercialize and, if reimbursement is available, what the
level of reimbursement will be. Inadequate coverage and reimbursement may impact the demand for, or the price of, any drug we
commercialize. If coverage and adequate reimbursement are not available, or are available only to limited levels, we may not be
able to successfully commercialize our current and any future drug products.

 Access to prescription drugs in the U.S. commercial market is largely controlled
by three dominant entities: Emisar/Optum/United HealthCare, Ascent/Express Scripts/Cigna, and Zinc/CVS Caremark/Aetna, which collectively
manage a significant portion of formulary decisions and reimbursement policies. These entities have the ability to deny or restrict formulary
access to our products through various techniques, including National Drug Code ("NDC") blocks, exclusion lists, and unfavorable
tier placement. Such actions could severely limit patient access to our therapies, reduce sales, and negatively impact our financial performance.
Additionally, the consolidation of PBMs and insurers further strengthens their negotiating leverage, increasing the risk of unfavorable
pricing and reimbursement terms for our products.

 Moreover, PBMs have significant influence over prescription drug access
through formulary decisions, reimbursement policies, and utilization management practices. In some cases, PBMs may prioritize lower-cost
alternatives, including off-label or unapproved therapies, over our FDA-approved products. This could include steering patients toward
opioid-based treatments for fibromyalgia or barbiturates for migraine or other medications that do not meet the same regulatory and safety
standards as our products. Such actions may limit patient access to clinically appropriate therapies and negatively impact our sales.

 Healthcare
legislative or regulatory reform measures, including government restrictions on pricing and reimbursement, may have a negative
impact on our business and results of operations.

 In
the United States and some foreign jurisdictions, there have been, and continue to be, several legislative and regulatory changes
and proposed changes regarding the healthcare system that could prevent or delay marketing authorization of product candidates, restrict
or regulate post-approval activities, and affect our ability to profitably sell any of our commercialized products.

 Among
policy makers and payors in the United States and elsewhere, there is significant interest in promoting changes in healthcare
systems with the stated goals of containing healthcare costs, improving quality and/or expanding access. In the United States,
the pharmaceutical industry has been a particular focus of these efforts and has been significantly affected by major legislative
initiatives. For example, in the United States, the PPACA substantially changed the way healthcare is financed by both the government
and private insurers, and significantly affects the pharmaceutical industry. Many provisions of the ACA impact the biopharmaceutical
industry, including that in order for a biopharmaceutical product to receive federal reimbursement under the Medicare Part B and
Medicaid programs or to be sold directly to U.S. government agencies, the manufacturer must extend discounts to entities eligible
to participate in the drug pricing program under the Public Health Services Act, or PHS.

the Inflation Reduction Act of 2022 includes policies that are designed to have a direct impact on
drug prices and reduce drug spending by the federal government. This legislation contains substantial drug pricing reforms, including
the establishment of a drug price negotiation program within the U.S. Department of Health and Human Services that would require
manufacturers to charge a negotiated "maximum fair price" for certain selected drugs covered by Medicare or pay an
excise tax for noncompliance, the establishment of rebate payment requirements on manufacturers of certain drugs payable under
Medicare Parts B and D to penalize price increases that outpace inflation, and requires manufacturers to provide discounts on
Part D drugs.

 Legislative,
administrative, and private payor efforts to control drug costs span a range of proposals, including drug price negotiation, Medicare
Part D redesign, drug price inflation rebates, international mechanisms, generic drug promotion and anticompetitive behavior,
manufacturer reporting, and reforms that could impact therapies utilizing the accelerated approval pathway. We cannot predict
the ultimate content, timing or effect of any changes to the ACA, the Inflation Reduction Act, or other federal and state healthcare
policy reform efforts including those aimed at drug pricing. There is no assurance that federal or state health care reform will
not adversely affect our future business and financial results, and we cannot predict how future federal or state legislative,
judicial or administrative changes relating to healthcare policy will affect our business.

 At the state level, legislatures are increasingly passing legislation and
implementing regulations designed to control pharmaceutical and biological product pricing, including price or patient reimbursement constraints,
discounts, restrictions on certain product access and marketing cost disclosure and transparency measures, and, in some cases, designed
to encourage importation from other countries and bulk purchasing. Other examples of proposed changes include, but are not limited to,
expanding post-approval requirements, changing the Orphan Drug Act, and restricting sales and promotional activities for pharmaceutical
products.

 We
cannot be sure whether additional legislative changes will be enacted, or whether government regulations, guidance or interpretations
will be changed, or what the impact of such changes would be on the marketing approvals, sales, pricing, or reimbursement of our
drug candidates or products, if any, may be. We expect that these and other healthcare reform measures that may be adopted in
the future, may result in more rigorous coverage criteria and in additional downward pressure on the price that we receive for
any approved drug. Any reduction in reimbursement from Medicare or other government programs may result in a similar reduction
in payments from private payors. The implementation of cost containment measures or other healthcare reforms may prevent us from
being able to generate revenue, attain profitability, or commercialize our drugs.

 In
addition, FDA regulations and guidance may be revised or reinterpreted by the FDA in ways that may significantly affect our business
and our products. Any new regulations or guidance, or revisions or reinterpretations of existing regulations or guidance, may
impose additional costs or lengthen FDA review times for our product candidates. We cannot determine how changes in regulations,
statutes, policies, or interpretations when and if issued, enacted or adopted, may affect our business in the future. Such changes
could, among other things, require:

 additional clinical trials to be conducted prior
 to obtaining approval;

 changes to manufacturing methods;

 recalls, replacements, or discontinuance of
 one or more of our products; and

 additional recordkeeping.

 Such
changes would likely require substantial time and impose significant costs, or could reduce the potential commercial value of
our product candidates. In addition, delays in receipt of or failure to receive regulatory clearances or approvals for any other
products would harm our business, financial condition, and results of operations.

 Even if we obtain regulatory approval to market our product
candidates, our product candidates may not be accepted by the market.

 Even if the FDA approves
one or more of our product candidates, physicians and patients may not accept it or use it. Even if physicians and patients would
like to use our products, our products may not gain market acceptance among healthcare payors such as managed care formularies,
insurance companies or government programs such as Medicare or Medicaid. Acceptance and use of our products will depend upon a
number of factors including: perceptions by members of the health care community, including physicians, about the safety and effectiveness
of our drug or device product; cost-effectiveness of our product relative to competing products; availability of reimbursement
for our product from government or other healthcare payors; and effectiveness of marketing and distribution efforts by us and our
licensees and distributors, if any.

 The degree of market
acceptance of any pharmaceutical product that we develop will depend on a number of factors, including:

 cost-effectiveness;

 the safety and effectiveness of our products, including any significant potential side effects (including drowsiness and dry mouth), as compared to alternative products or treatment methods;

 the timing of market entry as compared to competitive products;

 the rate of adoption of our products by doctors and nurses;

 product labeling or product insert required by the FDA for each of our products;

 reimbursement policies of government and third-party payors;

 effectiveness of our sales, marketing and distribution capabilities and the effectiveness of such capabilities of our collaborative partners, if any; and

 unfavorable publicity concerning our products or any similar products.

we expect sales of our current product candidates, if approved, to generate substantially all of our product revenues for the
foreseeable future, the failure of these products to find market acceptance would harm our business and could require us to seek
additional financing.

 Our prospects are dependent on the continued
successful commercialization of Zembrace and Tosymra. To the extent we cannot maintain or increase sales of Zembrace and Tosymra, our
business, financial condition and results of operations may be materially adversely affected and the price of our common stock may decline.

 Zembrace and Tosymra are our only drugs that have been approved for sale.
Continued commercialization of Zembrace and Tosymra is subject to many risks, and there is no guarantee that we will be able to maintain
or increase sales of Zembrace and Tosymra. While we have established our commercial team and have hired our U.S. sales force, we will need
to further expand and develop the team in order to continue to successfully grow the business. Even if we are successful in developing
our commercial team, there are many factors that could negatively impact sales of Zembrace and Tosymra or cause the continued commercialization
of Zembrace and Tosymra to be unsuccessful, including several factors that are outside our control. If the continued commercialization
of Zembrace and Tosymra or future sales are less successful than expected or perceived as disappointing, our stock price could decline
significantly, and the long-term success of the product and our company could be harmed.

 Additionally, our strategy in the U.S. includes distributing Zembrace and
Tosymra solely through a limited network of third-party specialty distributors and specialty pharmacies. While we have entered into agreements
with each of these distributors and pharmacies to distribute Zembrace and Tosymra in the U.S., they may not perform as agreed or they
may terminate their agreements with us. Also, we may need to enter into agreements with additional distributors or pharmacies, and there
is no guarantee that we will be able to do so on commercially reasonable terms or at all. In the event we are unable to maintain, or expand,
if needed, our commercial team, including our U.S. sales force, or maintain and, if needed, expand, our network of third-party specialty
distributors and specialty pharmacies, our ability to continue commercializing Zembrace and Tosymra would be limited, and Zembrace and
Tosymra may not be profitable.

 We have a history of operating losses
and expect to incur losses for the foreseeable future. We may never achieve profitability.

 We are focused on product
development, and we started generating revenues from product sales in the third quarter of 2023. We have incurred losses in each
year of our operations, and we expect to continue to incur operating losses for the foreseeable future. These operating losses
have adversely affected and are likely to continue to adversely affect our working capital, total assets and shareholders'
equity.

 We and our prospects
should be examined in light of the risks and difficulties frequently encountered by new and early-stage companies in new and rapidly
evolving markets. These risks include, among other things, the speed at which we can scale up operations, our complete dependence
upon development of our product candidates that currently have no market acceptance, our ability to establish and expand our brand
name, our ability to expand our operations to meet the commercial demand of our clients, our development of and reliance on strategic
and customer relationships and our ability to minimize fraud and other security risks.

 The process of developing
our products requires significant clinical, nonclinical and CMC development, laboratory testing and clinical studies. In addition,
commercialization of our product candidates will require that we obtain necessary regulatory approvals and establish sales, marketing
and manufacturing capabilities, either through internal hiring or through contractual relationships with others. We expect to incur
substantial losses for the foreseeable future as a result of anticipated increases in our research and development costs, including
costs associated with conducting preclinical and nonclinical testing and clinical studies, and regulatory compliance activities.

 We expect to incur
substantial additional operating expenses over the next several years as our research, development, preclinical and nonclinical
testing, and clinical study activities increase, and if and when we acquire rights to additional product candidates. The
amount of future losses and when, if ever, we will achieve profitability are uncertain. We have two products that have generated
commercial revenue starting in the third quarter of 2023, but we do not expect revenues from the commercial sale of products to
exceed expenses in the near future. Our ability to generate revenue and achieve profitability will depend on, among other things,
successful completion of the development of our product candidates; obtaining necessary regulatory approvals from the FDA; establishing
manufacturing, sales, and marketing arrangements with third parties; successfully commercializing our products; establishing a
favorable competitive position; and raising sufficient funds to finance our activities. Many of these factors will depend on circumstances
beyond our control. We might not succeed at any of these undertakings. If we are unsuccessful at some or all of these undertakings,
our business, prospects, and results of operations may be materially adversely affected.

 We expect a number of factors to
cause our operating results to fluctuate on a quarterly and annual basis, which may make it difficult to predict our future performance.

 We have not yet obtained regulatory approvals for TNX-102
SL or any of our other product candidates. Consequently, any predictions made about our future success or viability may not be as accurate
as they could be if we had a longer operating history or commercialized products. Our financial condition has varied significantly in
the past and will continue to fluctuate from quarter-to-quarter or year-to-year due to a variety of factors, many of which are beyond
our control. Factors relating to our business that may contribute to these fluctuations include other factors described elsewhere in this
annual report and also include, among other things:

 our ability to obtain additional funding to develop our product candidates;

 market acceptance of our product candidates;

 the ability of patients or healthcare providers to obtain coverage of or sufficient reimbursement for our products;

 our ability to obtain and maintain regulatory approval for our product
candidate TNX-102 SL for FM, or any of our other product candidates in the United States and foreign jurisdictions;

 delays in the commencement, enrollment and timing of clinical studies;

 the success of our clinical studies through all phases of clinical
 development, including studies of our most advanced product candidate, TNX-102 SL for FM and potentially other CNS
 indications;

 any delays in regulatory review and approval of product candidates in clinical development;

 potential nonclinical toxicity and/or side effects of our product candidates that could delay or prevent commercialization, limit the indications for any approved drug, require the establishment of REMS, or cause an approved drug to be taken off the market;

 our ability to establish or maintain collaborations, licensing or other arrangements;

 competition from existing products or new products that may emerge;

 our ability to leverage our proprietary technology platform to discover and develop additional product candidates;

 our ability and our licensors' abilities to successfully obtain, maintain, defend and enforce intellectual property rights important to our business; and

 potential product liability claims;

 Accordingly, the results
of any quarterly or annual periods should not be relied upon as indications of future operating performance.

 Uncertainty in Government Funding and
In-Kind Support Policies and Programs may adversely affect our business.

 Changes in federal funding policies, including the ongoing review of DoD
contracts and NIH grants and in-kind support by the new administration of President Donald Trump, could materially impact our financial
resources and the progress of research conducted with U.S.-based university collaborators. While we have secured certain DoD and NIH funding
and NIH in-kind support through Project NextGen, there is no guarantee that such funding or in-kind support will not be rescinded or otherwise
restricted. Additionally, DoD, NIH and Biomedical Advanced Research and Development Authority ("BARDA") funding for future
projects may be delayed, reduced, or denied altogether. Any such changes could adversely affect our research programs, financial condition,
and operational plans. Further, certain research projects conducted in collaboration with U.S.-based university collaborators could be
slowed or discontinued.

 We are exposed to cybersecurity and
data privacy risks that, if realized, could expose us to legal liability, damage our reputation and harm our business.

 We face risks of cyber-attacks,
computer hacks, theft, viruses, malicious software, phishing, employee error, denial-of-service attacks and other security breaches
that could jeopardize the performance of our software and expose us to financial and reputational harm. Any of these occurrences
could create liability for us, put our reputation in jeopardy and harm our business. Such harm could be in the form of theft of
our or our customers' confidential information, the inability to access our systems. In some cases, we rely on the safeguards
put in place by third parties to protect against security threats. These third parties, including vendors that provide products
and services for our operations, could also be a source of security risk to us in the event of a failure or a security incident
affecting their own security systems and infrastructure. Our network of partners could also be a source of vulnerability to the
extent their applications interface with ours, whether unintentionally or through a malicious backdoor. We do not review the software
code included in third-party integrations in all instances. Because the techniques used to obtain unauthorized access or to sabotage
systems change frequently and generally are not recognized until launched against a target, we or these third parties may be unable
to anticipate these techniques or to implement adequate preventative measures. We have internal controls designed to prevent cyber-related
frauds related to authorizing the transfer of funds, but such internal controls may not be adequate. With the increasing frequency
of cyber-related frauds to obtain inappropriate payments and other threats related to cyber-attacks, we may find it necessary to
expend resources to remediate cyber-related incidents or to enhance and strengthen our cybersecurity. Our remediation efforts may
not be successful and could result in interruptions, delays or cessation of service. Although we have insurance coverage for losses
associated with cyber-attacks, as with all insurance policies, there are coverage exclusions and limitations, and our coverage
may not be sufficient to cover all possible claims, and we may still suffer losses that could have a material adverse effect on
our reputation and business.

 The increase in remote
working arrangements by our employees, vendors, and other third parties also increase the risk of a data security compromise and
the possible attack surfaces. Although we conduct training as part of our information security, cybersecurity, and data privacy
efforts, that training cannot be completely effective in preventing those attacks from being successful. There can be no assurance
that our cybersecurity risk management program and processes, including our policies, controls, or procedures, will be fully implemented,
complied with or effective in protecting our systems and information.

 RISKS RELATED TO PRODUCT DEVELOPMENT,
REGULATORY APPROVAL, MANUFACTURING AND COMMERCILAIZATION

 Our product candidates are novel
and still in development.

 Our drug development methods may not lead to commercially
viable drugs for any of several reasons. For example, we may fail to identify appropriate targets or compounds, our drug candidates may
fail to be safe and effective in clinical studies, or we may have inadequate financial or other resources to pursue development efforts
for our drug candidates. Our drug candidates will require significant additional development, clinical studies, regulatory clearances
and additional investment by us or our collaborators before they can be commercialized.

 Further, we and our product candidates are subject to extensive regulation
by the FDA and comparable regulatory authorities in other countries governing, among other things, research, testing, clinical studies,
manufacturing, labeling, promotion, selling, adverse event reporting and recordkeeping. We are not permitted to market any of our product
candidates in the United States until we receive approval of an NDA for a product candidate from the FDA or the equivalent approval from
a foreign regulatory authority. Obtaining FDA approval is a lengthy, expensive and uncertain process. The success of our business depends on
the successful development, approval and commercialization of our product candidates. Any projected sales or future revenue
predictions are predicated upon FDA approval and market acceptance. If projected sales do not materialize for any reason, it would have
a material adverse effect on our business and our ability to continue operations.

 To obtain revenues
from sales of our product candidates, we must succeed, either alone or with third parties, in developing, obtaining regulatory
approval for, manufacturing and marketing drugs with commercial potential. We may never succeed in these activities, and we may
not generate sufficient revenues to continue our business operations or achieve profitability.

 Successful development of our products
is uncertain.

 Our development of
current and future product candidates is subject to the risks of failure and delay inherent in the development of new pharmaceutical
products, including: delays in product development, clinical testing, or manufacturing; unplanned expenditures in product development,
clinical testing, or manufacturing; failure to receive regulatory approvals; emergence of superior or equivalent products; inability
to manufacture on our own, or through any others, product candidates on a commercial scale; and failure to achieve market acceptance.

 Because of these risks,
our research and development efforts may not result in any commercially viable products. If a significant portion of these development
efforts are not successfully completed, required regulatory approvals are not obtained or any approved products are not commercially
successfully, our business, financial condition, and results of operations may be materially harmed.

 If preclinical and nonclinical testing or clinical
studies for our product candidates are unsuccessful or delayed, we will be unable to meet our anticipated development and commercialization
timelines.

 We rely and expect to continue
to rely on third parties, including contract research organizations, or CROs, and outside consultants, to conduct, supervise or monitor
some or all aspects of preclinical and nonclinical testing and clinical studies involving our product candidates. We have less control
over the timing and other aspects of these preclinical and nonclinical testing activities and clinical studies than if we performed the
monitoring and supervision entirely on our own. Third parties may not perform their responsibilities for our preclinical and nonclinical
testing and clinical studies on our anticipated schedule or, for clinical studies, consistent with a clinical study protocol. Delays in
preclinical and nonclinical testing, and clinical studies could significantly increase our product development costs and delay product
commercialization. In addition, many of the factors that may cause, or lead to, a delay in the clinical studies may also ultimately lead
to denial of regulatory approval of a product candidate.

 The commencement of clinical studies
can be delayed for a variety of reasons, including delays in:

 demonstrating sufficient safety and efficacy to obtain regulatory approval to commence a clinical study;

 reaching agreement on acceptable terms with prospective CROs and study sites;

 developing a stable formulation of a product candidate;

 manufacturing sufficient quantities of a product candidate; and

 obtaining institutional review board, or IRB, approval to conduct a clinical study at a prospective site.

 Once a clinical study has begun,
it may be delayed, suspended or terminated by us or the FDA or other regulatory authorities due to a number of factors, including:

 ongoing discussions with the FDA or other regulatory authorities regarding the scope or design of our clinical studies;

 failure to conduct clinical studies in accordance with regulatory requirements;

 lower than anticipated recruitment or retention rate of patients in clinical studies;

 inspection of the clinical study operations or study sites by the FDA or other regulatory authorities resulting in the imposition of a clinical hold;

 lack of adequate funding to continue clinical studies;

 negative results of clinical studies;

 investigational drug product out-of-specification; or

 nonclinical or clinical safety observations, including adverse events and SAEs.

 If clinical studies are unsuccessful,
and we are not able to obtain regulatory approvals for our product candidates under development, we will not be able to commercialize
these products, and therefore may not be able to generate sufficient revenues to support our business.

 We are subject to extensive and costly
government regulation.

 Product candidates
employing our technology are subject to extensive and rigorous domestic government regulation including regulation by the FDA,
the Centers for Medicare and Medicaid Services, other divisions of the United States Department of Health and Human Services, the
United States Department of Justice, state and local governments, and their respective foreign equivalents. The FDA regulates the
research, development, preclinical and nonclinical testing and clinical studies, manufacture, safety, effectiveness, record-keeping,
reporting, labeling, storage, approval, advertising, promotion, sale, distribution, import, and export of biopharmaceutical products.
The FDA regulates small molecule chemical entities as drugs, subject to an NDA under the FDCA. The FDA applies the same standards
for biologics, requiring an IND application, followed by a Biologic License Application, or BLA, prior to licensure. Other products,
such as vaccines, are also regulated under the Public Health Service Act. FDA has conflated the standards for approval of NDAs
and BLAs so that they require the same types of information on safety, effectiveness, and CMCs. If products employing our technologies
are marketed abroad, they will also be subject to extensive regulation by foreign governments, whether or not they have obtained
FDA approval for a given product and its uses. Such foreign regulation may be equally or more demanding than corresponding United
States regulation.

 Government regulation
substantially increases the cost and risk of researching, developing, manufacturing, and selling our products. The regulatory review
and approval process, which includes preclinical and nonclinical testing and clinical studies of each product candidate, is lengthy,
expensive, and uncertain. We or our collaborators must obtain and maintain regulatory authorization to conduct clinical studies.
We or our collaborators must obtain regulatory approval for each product we intend to market, and the manufacturing facilities
used for the products must be inspected and meet legal requirements. Securing regulatory approval requires the submission of extensive
preclinical, nonclinical and clinical data and other supporting information for each proposed therapeutic indication in order to
establish the product's safety and efficacy, and in the case of biologics also potency and purity, for each intended use.
The development and approval process takes many years, requires substantial resources, and may never lead to the approval of a
product.

 Even if we are able
to obtain regulatory approval for a particular product, the approval may limit the indicated medical uses for the product, may
otherwise limit our ability to promote, sell, and distribute the product, may require that we conduct costly post-marketing surveillance,
and/or may require that we conduct ongoing post-marketing studies. Material changes to an approved product, such as, for example,
manufacturing changes or revised labeling, may require further regulatory review and approval. Once obtained, any approvals may
be withdrawn, including, for example, if there is a later discovery of previously unknown problems with the product, such as a
previously unknown safety issue.

 If we, our collaborators,
or our CMOs fail to comply with applicable regulatory requirements at any stage during the regulatory process, such noncompliance
could result in, among other things, delays in the approval of applications or supplements to approved applications; refusal of
a regulatory authority, including the FDA, to review pending market approval applications or supplements to approved applications;
warning letters; fines; import and/or export restrictions; product recalls or seizures; injunctions; total or partial suspension
of production; civil penalties; withdrawals of previously approved marketing applications or licenses; recommendations by the FDA
or other regulatory authorities against governmental contracts; and/or criminal prosecutions.

 We do not have, and may never obtain,
the regulatory approvals we need to market our product candidates.

 Following completion
of clinical studies, the results are evaluated and, depending on the outcome, submitted to the FDA in the form of an NDA or BLA
in order to obtain FDA approval of the product and authorization to commence commercial marketing. In responding to an NDA, the
FDA may require additional testing or information, may require that the product labeling be modified, may impose post-approval
study and other commitments or reporting requirements or other restrictions on product distribution, or may deny the application.
The FDA has established performance goals for review of NDAs or BLAs: six months for priority applications and ten months for standard
applications. However, the FDA is not required to complete its review within these time periods. The timing of final FDA review
and action varies greatly but can take years in some cases and may involve the input of an FDA advisory committee of outside experts.
Product sales in the United States may commence only when an NDA or BLA is approved.

 To date, we have not received the regulatory approvals required for the commercial sale of any of our products in the United States or
in any foreign jurisdiction. None of our product candidates have been determined to be safe and effective, and we have not submitted
an NDA or BLA equivalent application to any foreign regulatory authorities for any of our product candidates.

 It is possible that
none of our product candidates will be approved for marketing. Failure to obtain regulatory approvals, or delays in obtaining regulatory
approvals, may adversely affect the successful commercialization of any drugs or biologics that we or our partners develop, may
impose additional costs on us or our collaborators, may diminish any competitive advantages that we or our partners may attain,
and/or may adversely affect our receipt of revenues or royalties.

 Our product candidates may cause serious
adverse events, or SAEs, or undesirable side effects which may delay or prevent marketing authorization, or, if approval is received,
require them to be taken off the market, require them to include safety warnings or otherwise limit their sales.

 SAEs or undesirable
side effects from any of our other product candidates could arise either during clinical development or, if approved, after the
approved product has been marketed. The results of future clinical studies may show that our product candidates cause SAEs or undesirable
side effects, which could interrupt, delay or halt clinical studies, resulting in delay of, or failure to obtain, marketing authorization
from the FDA and other regulatory authorities.

 If any of our other
product candidates cause SAEs or undesirable side effects or suffer from quality control issues:

 regulatory authorities may impose a clinical hold or risk evaluation and mitigation strategies, or REMS, which could result in substantial delays, significantly increase the cost of development, and/or adversely impact our ability to continue development of the product;

 regulatory authorities may require the addition of statements, specific warnings, or contraindications to the product label, or restrict the product's indication to a smaller potential treatment population;

 we may be required to change the way the product is administered or conduct additional clinical studies;

 we may be required to implement
a risk minimization action plan, which could result in substantial cost increases and have a negative impact on our ability to
commercialize the product;

 we may be required to limit the participants who can receive the product;

 we may be subject to limitations on how we promote the product;

 we may, voluntarily or involuntarily, initiate field alerts for product recall, which may result in shortages;

 sales of the product may decrease significantly;

 regulatory authorities may require us to take our approved product off the market;

 we may be subject to litigation or product liability claims; and

 our reputation may suffer.

 Any of these events
could prevent us from achieving or maintaining market acceptance of the affected product or could substantially increase commercialization
costs and expenses, which in turn could delay or prevent us from generating significant revenues from the sale of our products.

 If we are required to generate additional data related to safety and efficacy
in order to obtain approval for TNX-SL for FM under Section 505(b)(2), we may be unable to meet our anticipated development and commercialization
timelines.

 We submitted the NDA for TNX-102 SL for FM under Section 505(b)(2) of the
FDCA, which would enable us to rely in part on data in the public domain or elsewhere. Some of the data required by the FDA for approval
may be related to products already approved by the FDA. If the data relied upon is related to products already approved by the FDA and
covered by third-party patents, we would be required to certify that we do not infringe the listed patents or that such patents are invalid
or unenforceable. As a result of the certification, the third-party would have 45 days from notification of our certification to initiate
an action against us. In the event that an action is brought in response to such a certification, the approval of our NDA could
be subject to a stay of up to 30 months or more while we defend against such a suit. Approval of our product candidates under Section
505(b)(2) may therefore be delayed until patent exclusivity expires or until we successfully challenge the applicability of those patents
to our product candidates. Alternatively, we may elect to generate sufficient additional clinical data so that we no longer rely on data
which triggers a potential stay of the approval of our product candidates. Even if no exclusivity periods apply to our applications under
Section 505(b)(2), the FDA has broad discretion to require us to generate additional data on the safety and efficacy of our product candidates
to supplement third-party data on which we may be permitted to rely. In either event, we could be required, before obtaining marketing
authorization for any of our product candidates, to conduct substantial new research and development activities beyond those we currently plan
to engage in order to obtain approval of our product candidates. Such additional new research and development activities would be costly
and time-consuming.

 The FDA may not approve our NDA based on their review of the submitted data. If cyclobenzaprine-containing products are withdrawn
from the market by the FDA for any safety reason, we may not be able to reference such products to support a 505(b)(2) NDA for
TNX-102 SL, and we may need to fulfill the more extensive requirements of Section 505(b)(1). If we are required to generate additional
data to support approval, we may be unable to meet our anticipated development and commercialization timelines, may be unable to
generate the additional data at a reasonable cost, or at all, and may be unable to obtain marketing authorization of our lead product
candidate.

 Any breakthrough, fast track or orphan
drug designation or grant of priority review status by the FDA may not actually lead to a faster development or regulatory review
or approval process, nor will it assure FDA approval of our product candidates. Additionally, our product candidates may treat
indications that do not qualify for priority review vouchers.

 If a product candidate
offers major advances in treatment, the FDA may designate it eligible for priority review. The FDA has broad discretion whether
or not to grant these designations, so even if we believe a particular product candidate is eligible for these designations, we
cannot assure you that the FDA would decide to grant them. Even if we do receive fast track designation or priority review, we
may not experience a faster development process, review or approval compared to conventional FDA procedures. The FDA may withdraw
fast track designation if it believes that the designation is no longer supported by data from our clinical development program.

 Even if approved, our product candidates
will be subject to extensive post-approval regulation.

 Once a product is approved,
numerous post-approval requirements apply. Among other things, the holder of an approved NDA is subject to periodic and other FDA
monitoring and reporting obligations, including obligations to monitor and report adverse events and instances of the failure of
a product to meet the specifications in the NDA. Application holders must submit new or supplemental applications and obtain FDA
approval for certain changes to the approved product, product labeling, or manufacturing process. Application holders must also
submit advertising and other promotional material to the FDA and report on ongoing clinical studies.

 Depending on the circumstances,
failure to meet these post-approval requirements can result in criminal prosecution, fines, injunctions, recall or seizure of products,
total or partial suspension of production, denial or withdrawal of pre-marketing product approvals, or refusal to allow us to enter
into supply contracts, including government contracts. In addition, even if we comply with FDA and other requirements, new information
regarding the safety or effectiveness of a product could lead the FDA to modify or withdraw product approval.

 Our
relationships with customers, physicians, and third-party payors is subject, to federal and state healthcare fraud and abuse laws,
false claims laws, health information privacy and security laws, and other healthcare laws and regulations. If we are unable to
comply, or have not fully complied, with such laws, we could face substantial penalties.

 Healthcare
providers, physicians and third-party payors in the United States and elsewhere will play a primary role in the recommendation
and prescription of our products. Our current and future arrangements with healthcare professionals, principal investigators,
consultants, customers and third-party payors subject us to various federal and state fraud and abuse laws and other health care
laws, including, without limitation, the federal Anti-Kickback Statute, the federal civil and criminal false claims laws and the
law commonly referred to as the Physician Payments Sunshine Act and regulations. These laws will impact, among other things, our
clinical research, sales, marketing and educational programs. In addition, we may be subject to patient privacy laws by both the
federal government and the states in which we conduct or may conduct our business. The laws that will affect our operations include,
but are not limited to:

 the
 federal Anti-Kickback Statute, which prohibits, among other things, persons or entities from knowingly and willfully soliciting,
 receiving, offering or paying any remuneration (including any kickback, bribe or rebate), directly or indirectly, overtly
 or covertly, in cash or in kind, in return for the purchase, recommendation, leasing or furnishing of an item or service reimbursable
 under a federal healthcare program, such as the Medicare and Medicaid programs;

 federal
 civil and criminal false claims laws, including, without limitation, the False Claims Act, and civil monetary penalty laws
 which prohibit, among other things, individuals or entities from knowingly presenting, or causing to be presented, claims
 for payment or approval from Medicare, Medicaid or other government payors that are false or fraudulent or making a false
 statement to avoid, decrease or conceal an obligation to pay money to the federal government;

 the
 federal Health Insurance Portability and Accountability Act of 1996, or HIPAA, which created new federal criminal statutes
 that prohibit a person from knowingly and willfully executing a scheme or making false or fraudulent statements to defraud
 any healthcare benefit program, regardless of the payor (e.g., public or private);

 HIPAA,
 as amended by the Health Information Technology for Economic and Clinical Health Act, or HITECH, and its implementing regulations,
 and as amended again by the final HIPAA omnibus rule, Modifications to the HIPAA Privacy, Security, Enforcement, and Breach
 Notification Rules Under HITECH and the Genetic Information Nondiscrimination Act; Other Modifications to HIPAA, published
 in January 2013, which imposes certain requirements relating to the privacy, security and transmission of individually identifiable
 health information without appropriate authorization by entities subject to the rule, such as health plans, health care clearinghouses
 and health care providers, and their respective business associates;

 federal
 transparency laws, including the federal Physician Payments Sunshine Act, which is part of PPACA, that require certain manufacturers
 of drugs, devices, biologics and medical supplies for which payment is available under Medicare, Medicaid or the Children's
 Health Insurance Program, with specific exceptions, to report annually to the Centers for Medicare & Medicaid Services,
 or CMS, information related to: (i) payments or other "transfers of value'' made to physicians and
 teaching hospitals; and (ii) ownership and investment interests held by physicians and their immediate family members;

 state
 and foreign law equivalents of each of the above federal laws, state laws that require manufacturers to report information
 related to payments and other transfers of value to physicians and other healthcare providers or marketing expenditures, and
 state laws that require pharmaceutical companies to comply with the pharmaceutical industry's voluntary compliance guidelines
 and the relevant compliance guidance promulgated by the federal government or to adopt compliance programs as prescribed by
 state laws and regulations, or that otherwise restrict payments that may be made to healthcare providers; and

 state
 and foreign laws that govern the privacy and security of health information in some circumstances, many of which differ from
 each other in significant ways and often are not preempted by HIPAA, thus complicating compliance efforts.

of the breadth of these laws and the narrowness of the statutory exceptions and safe harbors available, it is possible that some
of our business activities could be subject to challenge under one or more of such laws.

 It
is possible that governmental authorities will conclude that our business practices may not comply with current or future statutes,
regulations or case law involving applicable fraud and abuse or other healthcare laws and regulations. If our operations are found
to be in violation of any of these laws or any other governmental regulations that may apply to us, we may be subject to significant
civil, criminal and administrative penalties, damages, fines, disgorgement, imprisonment, exclusion of drugs from government funded
healthcare programs, such as Medicare and Medicaid, additional reporting requirements and oversight if we become subject to a
corporate integrity agreement or similar agreement to resolve allegations of non-compliance with these laws and the
curtailment or restructuring of our operations.

 The
risk of our being found in violation of these laws is increased by the fact that many of them have not been fully interpreted
by the regulatory authorities or the courts, and their provisions are open to a variety of interpretations. Efforts to ensure
that our business arrangements with third parties will comply with applicable healthcare laws and regulations will involve substantial
costs. Any action against us for violation of these laws, even if we successfully defend against it, could cause us to incur significant
legal expenses and divert our management's attention from the operation of our business. The shifting compliance environment
and the need to build and maintain robust and expandable systems to comply with multiple jurisdictions with different compliance
and/or reporting requirements increases the possibility that a healthcare company may run afoul of one or more of the requirements.

 If
we obtain approval to commercialize any approved products outside of the United States, a variety of risks associated with international
operations could materially adversely affect our business.

 If
TNX-102 SL or any of our other product candidates are approved for commercialization outside of the United States, we intend to
enter into agreements with third parties to market them on a worldwide basis or in more limited geographical regions. We expect
that we will be subject to additional risks related to entering into international business relationships, including:

 different regulatory
 requirements for drug approvals;

 reduced protection
 for intellectual property rights, including trade secret and patent rights;

 unexpected changes
 in tariffs, trade barriers and regulatory requirements;

 economic weakness,
 including inflation, or political instability in particular foreign economies and markets;

 compliance with
 tax, employment, immigration and labor laws for employees living or traveling abroad;

 foreign taxes, including
 withholding of payroll taxes;

 foreign currency
 fluctuations, which could result in increased operating expenses and reduced revenues, and other obligations incident to doing
 business in another country;

 workforce uncertainty
 in countries where labor unrest is more common than in the United States;

 production shortages
 resulting from any events affecting raw material supply or manufacturing capabilities abroad;

 business interruptions
 resulting from geopolitical actions, including war and terrorism, or natural disasters including earthquakes, hurricanes,
 floods and fires; and

 difficulty in importing
 and exporting clinical study materials and study samples.

 We
may use our financial and human resources to pursue a particular research program or product candidate and fail to capitalize
on programs or product candidates that may be more profitable or for which there is a greater likelihood of success.

we have limited financial and human resources, we are currently focusing on development of our lead product candidates. As a result,
we may forego or delay pursuit of opportunities with other product candidates or for other indications that later prove to have
greater commercial potential. Our resource allocation decisions may cause us to fail to capitalize on viable commercial products
or profitable market opportunities. Our spending on existing and future product candidates for specific indications may not yield
any commercially viable products. If we do not accurately evaluate the commercial potential or target market for a particular
product candidate, we may relinquish valuable rights to that product candidate through strategic alliance, licensing or other
royalty arrangements in cases in which it would have been more advantageous for us to retain sole development and commercialization
rights to such product candidate, or we may allocate internal resources to a product candidate in a therapeutic area in which
it would have been more advantageous to enter into a partnering arrangement.

 The biopharmaceutical industry is subject
to extensive regulatory obligations and policies that may be subject to change, including due to judicial challenges.

 The U. S. biopharmaceutical
industry is highly regulated and subject to frequent and substantial changes, including as a result of new judicial or government actions.
Legislative and regulatory agendas as they relate to the biopharmaceutical industry are currently uncertain. Changes in the regulatory
approval process, or substantial reductions in the personnel who oversee that process, could affect our ability to obtain regulatory approval
for our product candidates or the timeline in which we can obtain that approval. We and our current and future third party collaborators
rely on government programs and agencies, such as DTRA and the NIH, as a source of grant funding for scientific research relevant to our
product candidates. Funding from government agencies such as DTRA and the NIH can fluctuate and is subject to the political
process, which is often unpredictable. Reductions in government grants to us or our third party collaborators may adversely impact our
ability to develop our existing product candidates and our ability to identify new product candidates. In addition, on June 28, 2024,
the U.S. Supreme Court issued an opinion holding that courts reviewing agency action pursuant to the Administrative Procedure Act ("APA")
"must exercise their independent judgment" and "may not defer to an agency interpretation of the law simply because
a statute is ambiguous." The decision could have a significant impact on how lower courts evaluate challenges to agency interpretations
of law, including those by the FDA and other agencies with significant oversight and impact of the biopharmaceutical industry. The new
framework may increase both the frequency of such challenges and their odds of success by eliminating one way in which the government
previously prevailed in such cases. As a result, significant regulatory policies could be subject to increased litigation and judicial
scrutiny. We cannot predict how other future federal or state legislative or administrative changes relating to healthcare reform or the
biopharmaceutical industry, or the regulatory agencies that oversee the biopharmaceutical industry, will affect our business.

 Reductions in staffing and funding at FDA and other federal agencies
could cause delays in the development and approval of our products.

 Under the Federal Food, Drug,
and Cosmetic Act, our products cannot be investigated in humans or marketed without approval from FDA. In addition, companies developing
new therapies routinely seek and receive guidance from FDA regarding their methods and plans for developing their products. We and companies
like us may also benefit from FDA-administered programs like orphan drug designation and expedited development pathways, e.g., breakthrough
designation. Any material reductions in the ability of FDA to perform these and other functions may delay the development and approval
of our product candidates. Recent actions by the United States federal government have caused concern in the industry that this may occur.
For example, beginning on February 13, 2025, the Department of Health and Human Services began firing a large number of its probationary
employees, a category that includes new federal employees and employees recently promoted or transferred to new positions or agencies.
Larger layoffs may follow, according to a memorandum issued by the Office of Personnel Management on February 26, 2025. These terminations,
if they withstand legal challenges, may significantly delay and impede our interactions with FDA. Similar results may stem from the recent
confirmed resignations of some senior FDA employees with responsibility for regulation of drugs and biologics, as well as possible future
layoffs and resignations. There are also reports that the United States federal government intends to request Congress to reduce FDA
funding in upcoming budgets. Such funding cuts may also delay the development and approval of our products.

 RISKS
RELATED TO OUR FINANCIAL CONDITION AND CAPITAL REQUIREMENTS; COMPETITION

 We may be unable to continue to operate without the threat of liquidation
for the foreseeable future. Our independent registered public accounting firm has included an explanatory paragraph relating to our ability
to continue as a going concern in its report on our audited financial statements.

 If we are unable to obtain sufficient funding, our business, prospects,
financial condition and results of operations will be materially and adversely affected and we may be unable to continue as a going concern.
For example, we anticipate that our existing cash and cash equivalents will enable us to maintain our current operations into the first
quarter of 2026, but not beyond. If we are unable to continue as a going concern, we may have to liquidate our assets and may receive
less than the value at which those assets are carried on our consolidated financial statements, and investors will likely lose all or
a part of their investment. Future reports from our independent registered public accounting firm may also contain statements expressing
substantial doubt about our ability to continue as a going concern. If we seek additional financing to fund our business activities in
the future and there remains substantial doubt about our ability to continue as a going concern, investors or other financing sources
may be unwilling to provide additional funding on commercially reasonable terms or at all. In connection with our management's assessment,
our report from our independent registered public accounting firm for the fiscal year ended December 31, 2024 includes an explanatory
paragraph stating that our recurring losses from operations and net capital deficiency raise substantial doubt about our ability to continue
as a going concern.

 We
will need additional capital. If additional capital is not available or is available at unattractive terms, we may be forced to
delay, reduce the scope of or eliminate our research and development programs, reduce our commercialization efforts or curtail
our operations.

 In
order to develop and bring our product candidates to market, we must commit substantial resources to costly and time-consuming
research, preclinical and nonclinical testing, clinical studies and marketing activities and the buildout of our research and
development and manufacturing facilities. We anticipate that our existing cash and cash equivalents will enable us to maintain
our current operations into the first quarter of 2026, but not beyond. We anticipate using our cash and cash equivalents to fund
further research and development with respect to our lead product candidate. We will, however, need to raise additional funding
sooner if our business or operations change in a manner that consumes available resources more rapidly than we anticipate. Our
requirements for additional capital will depend on many factors, including:

 increased sales of our two commercialized products;

 successful
 commercialization of our product candidates;

 the time and costs
 involved in obtaining regulatory approval for our product candidates;

 costs associated
 with protecting our intellectual property rights;

 development of marketing
 and sales capabilities;

 payments received
 under future collaborative agreements, if any; and

 market acceptance
 of our products.

 To
the extent we raise additional capital through the sale of equity securities, the issuance of those securities could result in
dilution to our shareholders. In addition, if we obtain debt financing, a substantial portion of our operating cash flow may be
dedicated to the payment of principal and interest on such indebtedness, thus limiting funds available for our business activities.
If adequate funds are not available, we may be required to delay, reduce the scope of or eliminate our research and development
programs, reduce our commercialization efforts or curtail our operations. In addition, we may be required to obtain funds through
arrangements with collaborative partners or others that may require us to relinquish rights to technologies, product candidates
or products that we would otherwise seek to develop or commercialize ourselves or license rights to technologies, product candidates
or products on terms that are less favorable to us than might otherwise be available.

 We
will require substantial additional funds to support our research and development activities, and the anticipated costs of preclinical
and nonclinical testing and clinical studies, regulatory approvals and eventual commercialization. Such additional sources of
financing may not be available on favorable terms, if at all. If we do not succeed in raising additional funds on acceptable terms,
we may be unable to commence or complete clinical studies or obtain approval of any product candidates from the FDA and other
regulatory authorities. In addition, we could be forced to discontinue product development, forego sales and marketing efforts
and forego attractive business opportunities. Any additional sources of financing will likely involve the issuance of our equity
securities, which will have a dilutive effect on our shareholders.

 There
is no assurance that we will be successful in raising the additional funds needed to fund our business plan. If we are not able
to raise sufficient capital in the near future, our continued operations will be in jeopardy and we may be forced to cease operations
and sell or otherwise transfer all or substantially all of our remaining assets.

 Competition
and technological change may make our product candidates and technologies less attractive or obsolete.

 We
compete with established pharmaceutical and biotechnology companies that are pursuing other forms of treatment for the same or
similar indications we are pursuing and that have greater financial and other resources. Other companies may succeed in developing
products earlier than us, obtaining FDA approval for products more rapidly, or developing products that are more effective than
our product candidates. Research and development by others may render our technology or product candidates obsolete or noncompetitive,
or result in treatments or cures superior to any therapy we develop. We face competition from companies that internally develop
competing technology or acquire competing technology from universities and other research institutions. As these companies develop
their technologies, they may develop competitive positions that may prevent, make futile, or limit our product commercialization
efforts, which would result in a decrease in the revenue we would be able to derive from the sale of any products.

 There
can be no assurance that any of our product candidates will be accepted by the marketplace as readily as these or other competing
treatments. Furthermore, if our competitors' products are approved before ours, it could be more difficult for us to obtain
approval from the FDA. For example, at least three vaccines for the prevention of COVID-19 have been approved to date, and we
expect that other vaccines will be approved prior to the approval of our COVID-19 vaccine candidate, if it is approved at all.
Even if our products are successfully developed and approved for use by all governing regulatory bodies, there can be no assurance
that physicians and patients will accept our product(s) as a treatment of choice.

if a competitor receives FDA approval before we do for a drug that is similar to one of our product candidates, FDA approval for
our product candidate may be precluded or delayed due to periods of non-patent exclusivity and/or the listing with the FDA by
the competitor of patents covering its newly-approved drug product. Periods of non-patent exclusivity for new versions of existing
drugs such as our current drug product candidate, TNX-102 SL, can extend up to three and one-half years.

 Furthermore,
the pharmaceutical research industry is diverse, complex, and rapidly changing. By its nature, the business risks associated therewith
are numerous and significant. The effects of competition, intellectual property disputes, market acceptance, and FDA regulations
preclude us from forecasting revenues or income with certainty or even confidence.

 Although we have two approved products on the market, we do not expect revenues from product sales to exceed expenses in the foreseeable future, if at all.

 We have two approved products on the market and started generating product
revenues in the second half of 2023. However, we have primarily funded our operations from sales of our securities and government funding.
We expect to rely on investment capital for the foreseeable future.

 Outbreaks of communicable diseases may materially
and adversely affect our business, financial condition and results of operations.

 We may face risks related to health
epidemics or outbreaks of communicable diseases. The outbreak of such communicable diseases, such as COVID-19, has and may result in future
widespread health crisis that adversely affect general commercial activity and the economies and financial markets of many countries.
An outbreak of communicable diseases, or the perception that such an outbreak could occur, and the measures taken by the governments of
countries affected could adversely affect our business, financial condition or results of operations. For example, an outbreak could significantly
disrupt our business by limiting our ability to travel or ship materials within or outside of an affected country and forcing temporary
closure of facilities or service providers that we rely upon. An outbreak could also impact our ability to conduct our ongoing multicenter
clinical trials if trial participant attendance at requisite study visits is substantially reduced and if a significant percentage of
study participants and study staff are adversely affected by coronavirus or other infections and the resulting disease course. Moreover,
government or community shutdowns such as those caused by the COVID-19 pandemic, may impair our ability to analyze and submit the results
from our clinical and preclinical trials, leading to further delays in the development and approval of our product candidates.

 RISKS
RELATED TO OUR INTELLECTUAL PROPERTY RIGHTS AND REGULATORY EXCLUSIVITY

 If
we fail to protect our intellectual property rights, our ability to pursue the development of our technologies and products would
be negatively affected.

 Our
success will depend in part on our ability to obtain patents and maintain adequate protection of our technologies and products.
If we do not adequately protect our intellectual property, competitors may be able to use our technologies to produce and market
drugs using our technologies and patents in direct competition with us and erode our competitive advantage. Some foreign countries
lack rules and methods for defending intellectual property rights and do not protect proprietary rights to the same extent as
the United States. Many companies have had difficulty protecting their proprietary rights in these foreign countries. We may not
be able to prevent misappropriation of our proprietary rights and intellectual property rights in these and other countries.

 We
have received, and are currently seeking, patent protection for numerous compounds and methods of treating diseases. However,
the patent process is subject to numerous risks and uncertainties, and there can be no assurance that we will be successful in
protecting our products by obtaining and defending patents related to them. These risks and uncertainties include the following:
patents that may be issued or licensed may be challenged, invalidated, or circumvented, or otherwise may not provide us any competitive
advantage; our competitors, many of which have substantially greater resources than we and many of which have made significant
investments in competing technologies, may seek, or may already have obtained, patents that will limit, interfere with, or eliminate
our ability to make, use, and sell our potential products either in the United States or in international markets; there may be
significant pressure on the United States government and other international governmental bodies to limit the scope of patent
protection both inside and outside the United States for treatments that prove successful as a matter of public policy regarding
worldwide health concerns; and countries other than the United States may have less robust patent laws than those upheld by United
States courts, allowing foreign competitors the ability to exploit these laws to create, develop, and market competing products
using our technologies and patents.

 Moreover,
any patents issued to us may not provide us with meaningful protection, or others may challenge, circumvent or narrow our patents.
Third parties may also independently develop products similar to our products, duplicate our unpatented products or design around
any patents or propriety technologies on products we develop. Additionally, extensive time is required for development, testing
and regulatory review of a potential product. While extensions of patent term due to regulatory delays may be available, it is
possible that, before any of our product candidates can be commercialized, any related patent, even with an extension, may expire
or remain in force for only a short period following commercialization, thereby reducing any advantages to us of the patent.

 In
addition, the PTO and patent offices in other jurisdictions have often required that patent applications concerning pharmaceutical
and/or biotechnology-related inventions be limited or narrowed substantially to cover only the innovations specifically exemplified
in the patent application, thereby limiting the scope of protection against competitive challenges. Thus, even if we or our licensors
are able to obtain patents, the patents may be substantially narrower than anticipated.

 Our
success depends on our patents and patent applications that may be licensed exclusively to us and other patents and patent applications
to which we may obtain assignment or licenses. We may not be aware, however, of all patents, published applications or published
literature that may affect our business either by blocking our ability to commercialize our product candidates, by preventing
the patentability of our product candidates to us or our licensors, or by covering the same or similar technologies. These patents,
patent applications, and published literature may limit the scope of our future patent claims or adversely affect our ability
to market our product candidates.

 In
addition to patents, we rely on a combination of trade secrets, confidentiality, nondisclosure and other contractual provisions,
and security measures to protect our confidential and proprietary information. These measures may not adequately protect our trade
secrets or other proprietary information. If they do not adequately protect our rights, third parties could use our technology,
and we could lose any competitive advantage we may have. In addition, others may independently develop similar proprietary information
or techniques or otherwise gain access to our trade secrets, which could impair any competitive advantage we may have.

 Patent
protection and other intellectual property protection is crucial to the success of our business and prospects, and there is a
substantial risk that such protections will prove inadequate.

 We
may be involved in lawsuits to protect or enforce our patents, which could be expensive and time consuming.

 The
pharmaceutical industry has been characterized by extensive litigation regarding patents and other intellectual property rights,
and companies have employed intellectual property litigation to gain a competitive advantage. We may become subject to infringement
claims or litigation arising out of present and future patents and other proceedings of our competitors. The defense and prosecution
of intellectual property suits are costly and time-consuming to pursue, and their outcome is uncertain. Litigation may be necessary
to determine the enforceability, scope, and validity of the proprietary rights of others. An adverse determination in litigation
to which we may become a party could subject us to significant liabilities, require us to obtain licenses from third parties,
or restrict or prevent us from selling our products in certain markets. Although patent and intellectual property disputes might
be settled through licensing or similar arrangements, the costs associated with such arrangements may be substantial and could
include our paying large, fixed payments and ongoing royalties. Furthermore, the necessary licenses may not be available on satisfactory
terms or at all.

 Competitors
may infringe our patents, and we may file infringement claims to counter infringement or unauthorized use. Third parties may assert
that our patents are invalid and/or unenforceable in these proceedings. Such litigation can be expensive, particularly for a company
of our size, and time-consuming. In addition, in an infringement proceeding, a court may decide that a patent of ours is not valid
or is unenforceable, or may refuse to stop the other party from using the technology at issue on the grounds that our patents
do not cover its technology. An adverse determination of any litigation or defense proceedings could put one or more of our patents
at risk of being invalidated or interpreted narrowly.

 Third
parties may also assert that our patents are invalid in patent office administrative proceedings. These proceedings include oppositions
in the European Patent Office and inter partes review and post-grant review proceedings in the PTO. The success
rate of these administrative challenges to patent validity in the United States is higher than it is for validity challenges in
litigation.

 Interference
or derivation proceedings brought before the PTO may be necessary to determine priority of invention with respect to innovations
disclosed in our patents or patent applications. During these proceedings, it may be determined that we do not have priority of
invention for one or more aspects in our patents or patent applications and could result in the invalidation in part or whole
of a patent or could put a patent application at risk of not issuing. Even if successful, an interference or derivation proceeding
may result in substantial costs and distraction to our management.

 Furthermore,
because of the substantial amount of discovery required in connection with intellectual property litigation or interference or
derivation proceedings, there is a risk that some of our confidential information could be compromised by disclosure. In addition,
there could be public announcements of the results of hearings, motions or other interim proceedings or developments. If investors
perceive these results to be negative, the price of our common stock could be adversely affected.

 Except
for the oppositions to European Patents 2501234, 2968992, and 2683245 (the Opposition Division in each of those oppositions maintained
our claims in unamended form; Opponent has appealed that decision in the '234 Opposition and we expect the opponents to
appeal the decisions in the '992 and '245 oppositions), there are no unresolved communications, allegations, complaints
or threats of litigation related to the possibility that our patents are invalid or unenforceable. Any litigation or claims against
us, whether or not merited, may result in substantial costs, place a significant strain on our financial resources, divert the
attention of management and harm our reputation. An adverse decision in litigation or administrative proceedings could result
in inadequate protection for our product candidates and/or reduce the value of any license agreements we have with third parties.

 If
we infringe the rights of third parties we could be prevented from selling products, forced to pay damages, and defend against
litigation.

 If
our products, methods, processes and other technologies infringe the proprietary rights of other parties, we could incur substantial
costs and we may have to: obtain licenses, which may not be available on commercially reasonable terms, if at all; abandon an
infringing product candidate; redesign our products or processes to avoid infringement; stop using the subject matter claimed
in the patents held by others; pay damages; and/or defend litigation or administrative proceedings which may be costly whether
we win or lose, and which could result in a substantial diversion of our financial and management resources.

 There
are risks to our intellectual property based on our international business initiatives.

 We
may face risks to our technology and intellectual property as a result of our conducting strategic business discussions outside
of the United States, and particularly in jurisdictions that do not have comparable levels of protection of corporate proprietary
information and assets such as intellectual property, trademarks, trade secrets, know-how and customer information and records.
While these risks are common to many companies, conducting business in certain foreign jurisdictions, housing technology, data
and intellectual property abroad, or licensing technology to joint ventures with foreign partners may have more significant exposure.
For example, we have shared intellectual properties with entities in China pursuant to confidentiality agreements in connection
with discussions on potential strategic collaborations, which may expose us to material risks of theft of our proprietary information
and other intellectual property, including technical data, manufacturing processes, data sets or other sensitive information.
For example, our technology may be reverse engineered by the parties or other parties, which could result in our patents being
infringed or our know-how or trade secrets stolen. The risk can be by direct intrusion wherein technology and intellectual property
is stolen or compromised through cyber intrusions or physical theft through corporate espionage, including with the assistance
of insiders, or via more indirect routes.

 GENERAL COMPANY-RELATED RISKS

 We
rely on third parties to conduct, supervise and monitor our clinical studies, and if those third parties perform in an unsatisfactory
manner, it may harm our business.

 We
rely on CROs and clinical study sites to ensure the proper and timely conduct of our clinical studies. While we have agreements
governing their activities, we will have limited influence over their actual performance. We will control only certain aspects
of our CROs' activities. Nevertheless, we will be responsible for ensuring that our clinical studies are conducted in accordance
with the applicable protocol, legal, regulatory and scientific standards and our reliance on the CROs does not relieve us of our
regulatory responsibilities.

 We
and our CROs are required to comply with the FDA's cGCP for conducting, recording and reporting the results of clinical
studies to assure that data and reported results are credible and accurate and that the rights, integrity and confidentiality
of clinical study participants are protected. The FDA enforces these cGCPs through periodic inspections of study sponsors, principal
investigators and clinical study sites. If we or our CROs fail to comply with applicable cGCPs, the clinical data generated in
our clinical studies may be deemed unreliable and the FDA may require us to perform additional clinical studies before approving
any marketing applications. Upon inspection, the FDA may determine that our clinical studies did not comply with cGCPs. Accordingly,
if our CROs fail to comply with these regulations, we may be required to repeat such clinical studies, which would delay the regulatory
approval process.

 Our
CROs are not our employees, and we are not able to control whether or not they devote sufficient time and resources to our clinical
studies. These CROs may also have relationships with other commercial entities, including our competitors, for whom they may also
be conducting clinical studies, or other drug development activities which could harm our competitive position.

 If
our CROs do not successfully carry out their contractual duties or obligations, fail to meet expected deadlines, or if the quality
or accuracy of the clinical data they obtain is compromised due to the failure to adhere to our clinical protocols or regulatory
requirements, or for any other reasons, our clinical studies may be extended, delayed or terminated, and we may not be able to
obtain regulatory approval for, or successfully commercialize our product candidates. As a result, our financial results and the
commercial prospects for such product candidates would be harmed, our costs could increase, and our ability to generate revenues
could be delayed.

 We
also rely on other third parties to store and distribute drug products for our clinical studies. Any performance failure on the
part of our distributors could delay clinical development or marketing authorization of our product candidates or commercialization
of our products, if approved, producing additional losses and depriving us of potential product revenue.

 In addition, we currently rely on foreign CROs and CMOs, and will likely
continue to rely on foreign CROs and CMOs in the future. Foreign CMOs may be subject to U.S. legislation, including the proposed BIOSECURE Act,
sanctions, trade restrictions and other foreign regulatory requirements which could increase the cost or reduce the supply of material
available to us, delay the procurement or supply of such material or have an adverse effect on our ability to secure significant commitments
from governments to purchase our potential therapies.

 For
example, the biopharmaceutical industry in China is strictly regulated by the Chinese government. Changes to Chinese regulations
or government policies affecting biopharmaceutical companies are unpredictable and may have a material adverse effect on our collaborators
in China which could have an adverse effect on our business, financial condition, results of operations and prospects. Evolving
changes in China's public health, economic, political, and social conditions and the uncertainty around China's relationship
with other governments, such as the United States and the U.K., could also negatively impact our ability to manufacture our product
candidates for our planned clinical trials or have an adverse effect on our ability to secure government funding, which could
adversely affect our financial condition and cause us to delay our clinical development programs.

 We
will need to expand our operations and increase the size of our company, and we may experience difficulties in managing growth.

 As
we advance our product candidates through preclinical and nonclinical testing and clinical studies, and develop new product candidates,
buildout of our research and development and manufacturing facilities, and develop our commercialization organization, we will
need to increase our product development, scientific, regulatory and compliance and administrative headcount to manage these programs.
In addition, to meet our obligations as a public company, we will need to increase our general and administrative capabilities.
Our management, personnel and systems currently in place may not be adequate to support this future growth. Our need to effectively
manage our operations, growth and various projects requires that we:

 successfully attract
 and recruit new employees with the expertise and experience we will require;

 manage our clinical
 programs effectively, which we anticipate being conducted at numerous clinical sites;

 maintain a marketing,
 distribution and sales infrastructure in addition to a post-marketing surveillance program; and

 continue to improve
 our operational, manufacturing, quality assurance, financial and management controls, reporting systems and procedures.

 If
we are unable to successfully manage this growth and increased complexity of operations, our business may be adversely affected.

 Our
executive officers and other key personnel are critical to our business, and our future success depends on our ability to retain
them.

 Our success depends to a significant extent upon the continued services
of Dr. Seth Lederman, our President and Chief Executive Officer and Dr. Gregory M. Sullivan, our Chief Medical Officer. Dr. Lederman has
overseen Tonix Pharmaceuticals, Inc., a wholly-owned subsidiary, since inception and provides leadership for our growth and operations
strategy as well as being an inventor on many of our patents. Dr. Sullivan has served as our Chief Medical Officer since 2014 and directed
the fibromyalgia program's Phase 2 AtEase study, Phase 3 RELIEF study, the Phase 3 RALLY study and the Phase 3 RESILIENT study.
Loss of the services of Drs. Lederman or Sullivan would have a material adverse effect on our growth, revenues, and prospective business.
The loss of any of our key personnel, or the inability to attract and retain qualified personnel, may significantly delay or prevent the
achievement of our research, development or business objectives and could materially adversely affect our business, financial condition
and results of operations.

 Any
employment agreement we enter into will not ensure the retention of the employee who is a party to the agreement. In addition,
we have only limited ability to prevent former employees from competing with us.

 Furthermore,
our future success will also depend in part on the continued service of our key scientific and management personnel and our ability
to identify, hire, and retain additional personnel. We experience intense competition for qualified personnel and may be unable
to attract and retain the personnel necessary for the development of our business. Moreover, competition for personnel with the
scientific and technical skills that we seek is extremely high and is likely to remain high. Because of this competition, our
compensation costs may increase significantly.

 If
we are unable to hire additional qualified personnel, our ability to grow our business may be harmed.

 Over
time we will need to hire additional qualified personnel with expertise in drug development, product registration, clinical, preclinical
and nonclinical research, quality compliance, government regulation, formulation and manufacturing, financial matters and sales
and marketing. We compete for qualified individuals with numerous biopharmaceutical companies, universities and other research
institutions. Competition for such individuals is intense, and we cannot be certain that our search for such personnel will be
successful. Attracting and retaining qualified personnel will be critical to our success.

 We
rely on third parties to manufacture our marketed products and the compounds used in our studies, and we intend to rely on them
in the future. If these third parties do not manufacture our products and product candidates in sufficient quantities and at an
acceptable cost, clinical development and commercialization of our products and product candidates could be delayed, prevented
or impaired.

 We rely on CMOs to manufacture all of our product candidates in clinical
studies and our commercial products. Completion of our clinical studies and commercialization of our products requires the manufacture
of a sufficient supply of our products. We have contracted with outside sources to manufacture our development compounds and commercial
products. If, for any reason, we become unable to rely on our current manufacturing sources, either for clinical studies or for commercial
quantities, then we would need to identify and contract with additional or replacement third-party manufacturers.

 We
believe that there are a variety of manufacturers that we may be able to retain to produce these products. However, once we retain
a manufacturing source, if our manufacturers do not perform in a satisfactory manner, we may not be able to develop or commercialize
our products as planned. Certain specialized manufacturers are expected to provide us with modified and unmodified pharmaceutical
compounds, including finished products, for use in our preclinical and nonclinical testing and clinical studies and final product.
Some of these materials are available from only one supplier or vendor. Any interruption in or termination of service by such
sole source suppliers could result in a delay or interruption in manufacturing until we locate an alternative source of supply.
Any delay or interruption in manufacturing operations (or failure to locate a suitable replacement for such suppliers) could materially
adversely affect our business, prospects, or results of operations. We do not have any short-term or long-term manufacturing agreements
with many of these manufacturers. If we fail to contract for manufacturing on acceptable terms or if third-party manufacturers
do not perform as we expect, our development programs could be materially adversely affected, and our efforts to commercialize
our marketed products will be materially impaired. This may result in delays in filing for and receiving FDA approval for one
or more of our products and impair our revenues from sales. Any such delays could cause our prospects and financial condition
to suffer significantly.

 Failure
by our third-party manufacturers to comply with the regulatory guidelines set forth by the FDA with respect to our products and
product candidates could delay or prevent the completion of clinical studies, the approval of any product candidates or the commercialization
of our products.

 Third-party
manufacturers must be inspected by FDA for cGMP compliance before they can produce commercial product. We may be in competition
with other companies for access to these manufacturers' facilities and may be subject to delays in manufacture if the manufacturers
give other clients higher priority than they give to us. If we are unable to secure and maintain third-party manufacturing capacity,
the development and sales of our products and our financial performance may be materially affected.

 Manufacturers
are obligated to operate in accordance with FDA-mandated requirements. A failure of any of our third-party manufacturers to establish
and follow cGMP requirements and to document their adherence to such practices may lead to significant delays in the availability
of material for clinical studies, may delay or prevent filing or approval of marketing applications for our products, and may
cause delays or interruptions in the availability of our products for commercial distribution following FDA approval. This could
result in higher costs to us or deprive us of potential product revenues.

 Drug
manufacturers are subject to ongoing periodic unannounced inspections by the FDA, the Drug Enforcement Administration, or DEA,
and corresponding state and foreign agencies to ensure strict compliance with cGMP requirements and other requirements under Federal
drug laws, other government regulations and corresponding foreign standards. If we or our third-party manufacturers fail to comply
with applicable regulations, sanctions could be imposed on us, including fines, injunctions, civil penalties, failure by the government
to grant marketing approval of drugs, delays, suspension or withdrawal of approvals, seizures or recalls of product, operating
restrictions and criminal prosecutions.

 Adverse
global conditions, including economic uncertainty, may negatively impact our financial results.

 Global conditions, dislocations in the financial markets, or inflation
could adversely impact our business. In addition, the global macroeconomic environment has been and may continue to be negatively affected
by, among other things, instability in global economic markets, increased U.S. trade tariffs and trade disputes with other countries,
instability in the global credit markets, supply chain weaknesses, instability in the geopolitical environment, political tensions, and
foreign governmental debt concerns. Such challenges have caused, and may continue to cause, uncertainty and instability in local economies
and in global financial markets, which may adversely affect our business.

 Our
internal computer systems, or those of our CROs or other contractors or consultants, may fail or suffer security breaches, which
could result in a material disruption of our product development programs.

 Despite
the implementation of security measures, our internal computer systems and those of our CROs and other contractors and consultants
are vulnerable to damage or disruption from computer viruses, software bugs, unauthorized access, natural disasters, terrorism,
war, and telecommunication, equipment and electrical failures.

 While
we have not, to our knowledge, experienced any significant system failure, accident or security breach to date, if such an event
were to occur and cause interruptions in our operations, it could result in a material disruption of our programs. For example,
the loss of clinical trial data from completed or ongoing clinical trials for any of our product candidates could result in delays
in our regulatory approval efforts and significantly increase our costs to recover or reproduce the data. Moreover, our information
security systems and those of our CROs are also subject to laws and regulations requiring that we take measures to protect the
privacy and security of certain information gathered and used in our business. For example, HIPAA and its implementing regulations
impose, among other requirements, certain regulatory and contractual requirements regarding the privacy and security of personal
health information. In the European Union the General Data Protection Regulation, or GDPR, is even more restrictive with respect
to all personal information, including information masked by a coding system. In addition to HIPAA and GDPR, numerous other federal
and state laws, including, without limitation, state security breach notification laws, state health information privacy laws
and federal and state consumer protection laws, govern the collection, use, disclosure and storage of personal information. To
the extent that any disruption or security breach results in a loss of or damage to our data or applications, or inappropriate
disclosure or theft of confidential or proprietary information, we could incur liability, the further development of our product
candidates could be delayed, our competitive position could be compromised, or our business reputation could be harmed.

 Corporate
and academic collaborators may take actions to delay, prevent, or undermine the success of our products.

 Our
operating and financial strategy for the development, clinical testing, manufacture, and commercialization of drug candidates
is heavily dependent on our entering into collaborations with corporations, academic institutions, licensors, licensees, and other
parties. Our current strategy assumes that we will successfully establish these collaborations, or similar relationships; however,
there can be no assurance that we will be successful establishing such collaborations. Some of our existing collaborations are,
and future collaborations may be, terminable at the sole discretion of the collaborator. Replacement collaborators might not be
available on attractive terms, or at all. The activities of any collaborator will not be within our control and may not be within
our power to influence. There can be no assurance that any collaborator will perform its obligations to our satisfaction or at
all, that we will derive any revenue or profits from such collaborations, or that any collaborator will not compete with us. If
any collaboration is not pursued, we may require substantially greater capital to undertake development and marketing of our proposed
products and may not be able to develop and market such products effectively, if at all. In addition, a lack of development and
marketing collaborations may lead to significant delays in introducing proposed products into certain markets and/or reduced sales
of proposed products in such markets.

 Data
provided by collaborators and others upon which we rely that has not been independently verified could turn out to be false, misleading,
or incomplete.

 We
rely on third-party vendors, scientists, and collaborators to provide us with significant data and other information related to
our projects, clinical studies, and our business. If such third parties provide inaccurate, misleading, or incomplete data, our
business, prospects, and results of operations could be materially adversely affected.

 Our
product candidates may face competition sooner than expected.

 We intend to seek data exclusivity or market exclusivity for our product
candidates provided under the FDCA and similar laws in other countries. We believe that TNX-801 could qualify for 12 years of data exclusivity
under the Biologics Price Competition and Innovation Act of 2009, or BPCIA. Under the BPCIA, an application for a biosimilar product or
BLA cannot be submitted to the FDA until four years, or if approved by the FDA, until 12 years, after the original brand product identified
as the reference product is approved under a BLA. The BPCIA provides an abbreviated pathway for the approval of biosimilar and interchangeable
biological products. The new abbreviated regulatory pathway establishes legal authority for the FDA to review and approve biosimilar biologics,
including the possible designation of a biosimilar as "interchangeable" based on its similarity to an existing brand product.
If the BPCIA is repealed or amended to shorten this exclusivity period, potentially creating the opportunity for biosimilar competition
sooner than anticipated after the expiration of our patent protection, or business may be harmed. Moreover, the extent to which a biosimilar,
once approved, will be substituted for any reference product in a way that is similar to traditional generic substitution for non-biological
products is not yet clear, and will depend on a number of marketplace and regulatory factors that are still developing.

 Our product candidates that are not, or are not considered, biologics that
would qualify for exclusivity under the BPCIA may be eligible for market exclusivity as drugs under the FDCA. The FDCA provides a five-year
period of non-patent marketing exclusivity within the U.S. to the first applicant to gain approval of an NDA for an new chemical entity
("NCE"). A drug is an NCE if the FDA has not previously approved any other new drug containing the same active moiety, which
is the molecule or ion responsible for the action of the drug substance. During the exclusivity period, the FDA may not accept for review
an abbreviated new drug application, or ANDA, or a 505(b)(2) NDA, submitted by another company for another version of such drug where
the applicant does not own or have a legal right of reference to all the data required for approval. However, an application may be submitted
after four years if it contains a certification of patent invalidity or non-infringement. The FDCA also provides three years of marketing
exclusivity for an NDA, 505(b)(2) NDA or supplement to an existing NDA if new clinical investigations, other than bioavailability studies,
that were conducted or sponsored by the applicant are deemed by the FDA to be essential to the approval of the application, for example,
for new indications, dosages, or strengths of an existing drug. This three-year exclusivity covers only the conditions associated with
the new clinical investigations and does not prohibit the FDA from approving ANDAs for drugs containing the original active agent.

 Even
if, as we expect, our product candidates are considered to be reference products eligible for 12 years of exclusivity under the
BPCIA or five years of exclusivity under the FDCA, another company could market competing products if the FDA approves a full
BLA or full NDA for such product containing the sponsor's own preclinical data and data from adequate and well-controlled
clinical trials to demonstrate the safety, purity and potency of the products. Moreover, an amendment or repeal of the BPCIA could
result in a shorter exclusivity period for our product candidates, which could have a material adverse effect on our business.

 If
we fail to establish marketing, sales and distribution capabilities, or fail to enter into arrangements with third parties, we
will not be able to create a market for our product candidates.

 Our
strategy for our marketed products and our product candidates is to control, directly or through contracted third parties, all
or most aspects of the product development process, including marketing, sales and distribution.

 We
are in the process of establishing sales, marketing or distribution capabilities. In order to successfully generate and increase
sales of our marketed products or any of our product candidates that receive regulatory approval, we must either acquire or develop
an internal marketing and sales force with technical expertise and with supporting distribution capabilities or make arrangements
with third parties to perform these services for us. The acquisition or development of a sales and distribution infrastructure,
which we have commenced, requires substantial resources, which may divert the attention of our management and key personnel and
defer our product development efforts.

 To
the extent that we enter into marketing and sales arrangements with other companies, our revenues will depend on the efforts of
others. These efforts may not be successful. If we fail to develop sales, marketing and distribution channels, or enter into arrangements
with third parties, we will experience delays in product sales and incur increased costs.

 Sales
of pharmaceutical products largely depend on the reimbursement of patients' medical expenses by government health care programs
and private health insurers. Without the financial support of the government or third-party payors, the market for our products
will be limited. These third-party payors are increasingly challenging the price and examining the cost effectiveness of medical
products and services. Recent proposals to change the health care system in the United States have included measures that would
limit or eliminate payments for medical products and services or subject the pricing of medical treatment products to government
control. Significant uncertainty exists as to the reimbursement status of newly approved health care products. Third-party payors
may not reimburse sales of our products or enable our collaborators to sell them at profitable prices.

 Our
business strategy might involve out-licensing product candidates to or collaborating with larger firms with experience in marketing
and selling pharmaceutical products. There can be no assurance that we will be able to successfully establish marketing, sales,
or distribution relationships; that such relationships, if established, will be successful; or that we will be successful in gaining
market acceptance for our products. To the extent that we enter into any marketing, sales, or distribution arrangements with third
parties, our product revenues will be lower than if we marketed and sold our products directly, and any revenues we receive will
depend upon the efforts of such third-parties. If we are unable to establish such third-party sales and marketing relationships,
or choose not to do so, we will have to establish and rely on our own in-house capabilities.

 We, as a company, have limited experience in marketing or selling pharmaceutical
products and currently have a small sales, marketing, and distribution infrastructure. To market any of our products directly, we would
need to continue to develop a marketing, sales, and distribution force that both has technical expertise and the ability to support a
distribution capability. The establishment of a marketing, sales, and distribution capability would significantly increase our costs,
possibly requiring substantial additional capital. In addition, there is intense competition for proficient sales and marketing personnel,
and we may not be able to attract individuals who have the qualifications necessary to market, sell, and distribute our products. There
can be no assurance that we will be able to establish internal marketing, sales, or distribution capabilities. If we are unable to, or
choose not to establish these capabilities, or if the capabilities we establish are not sufficient to meet our needs, we will be required
to establish collaborative marketing, sales, or distribution relationships with third parties.

 We
face the risk of product liability claims and may not be able to obtain insurance.

 Our
business exposes us to the risk of product liability claims that are inherent in the sale and development of drugs. If the use
of one or more of our or our collaborators' drugs harms people, we may be subject to costly and damaging product liability
claims brought against us by clinical study participants, consumers, health care providers, pharmaceutical companies or others
selling our products. Our inability to obtain sufficient product liability insurance at an acceptable cost to protect against
potential product liability claims could prevent or inhibit the commercialization of pharmaceutical products we develop, alone
or with collaborators. While we currently carry clinical study insurance and product liability insurance, we cannot predict all
of the possible harms or side effects that may result and, therefore, the amount of insurance coverage we hold now or in the future
may not be adequate to cover all liabilities we might incur. We expanded our insurance coverage to include the sale of our commercial
products Tosymra and Zembrace Symtouch. We intend to further expand our insurance coverage to include the sale of TNX-102 SL upon
receiving FDA approval for marketing. If we are unable to obtain insurance at an acceptable cost or otherwise protect against
potential product liability claims, we will be exposed to significant liabilities, which may materially and adversely affect our
business and financial position. If we are sued for any injury allegedly caused by our or our collaborators' products, our
liability could exceed our total assets and our ability to pay the liability. A product liability claim or series of claims brought
against us would decrease our cash and could cause our stock price to fall.

 We
use hazardous chemicals in our business. Potential claims relating to improper handling, storage or disposal of these chemicals
could affect us and be time-consuming and costly.

 Our
research and development processes and/or those of our third party contractors may involve the controlled use of hazardous materials
and chemicals. These hazardous chemicals are reagents and solvents typically found in a chemistry laboratory. Our operations also
produce hazardous waste products. Federal, state and local laws and regulations govern the use, manufacture, storage, handling
and disposal of hazardous materials. While we attempt to comply with all environmental laws and regulations, including those relating
to the outsourcing of the disposal of all hazardous chemicals and waste products, we cannot eliminate the risk of contamination
from or discharge of hazardous materials and any resultant injury. In the event of such an accident, we could be held liable for
any resulting damages and any liability could materially adversely affect our business, financial condition and results of operations.

 Compliance
with environmental laws and regulations may be expensive. Current or future environmental regulations may impair our research,
development or production efforts. We might have to pay civil damages in the event of an improper or unauthorized release of,
or exposure of individuals to, hazardous materials. We are not insured against these environmental risks.

 If
we enter into collaborations with third parties, they might also work with hazardous materials in connection with our collaborations.
We may agree to indemnify our collaborators in some circumstances against damages and other liabilities arising out of development
activities or products produced in connection with these collaborations.

 In
addition, the federal, state and local laws and regulations governing the use, manufacture, storage, handling and disposal of
hazardous or radioactive materials and waste products may require us to incur substantial compliance costs that could materially
adversely affect our business, financial condition and results of operations.

 Our
insurance policies are expensive and protect us only from some business risks, which will leave us exposed to significant uninsured
liabilities.

 We carry insurance for most categories of risk that our business
may encounter, however, we may not have adequate levels of coverage. We currently maintain general liability, clinical study, property,
workers' compensation, products liability and directors' and officers' insurance, along with an umbrella policy, which
collectively costs approximately $1,500,000 per annum. We cannot provide any assurances that we will be able to maintain existing insurance
at current or adequate levels of coverage. Any significant uninsured liability may require us to pay substantial amounts, which would
adversely affect our cash position and results of operations.

 If
we retain collaborative partners and our partners do not satisfy their obligations, we will be unable to develop our partnered
product candidates.

 In
the event we enter into any collaborative agreements, we may not have day-to-day control over the activities of our collaborative
partners with respect to any of these product candidates. Any collaborative partner may not fulfill its obligations under these
agreements. If a collaborative partner fails to fulfill its obligations under an agreement with us, we may be unable to assume
the development of the products covered by that agreement or enter into alternative arrangements with a third party. In addition,
we may encounter delays in the commercialization of the product candidate that is the subject of the agreement. Accordingly, our
ability to receive any revenue from the product candidates covered by these agreements will be dependent on the efforts of our
collaborative partner. We could also become involved in disputes with a collaborative partner, which could lead to delays in or
termination of our development and commercialization programs and time-consuming and expensive litigation or arbitration. In addition,
any such dispute could diminish our collaborators' commitment to us and reduce the resources they devote to developing and
commercializing our products. Conflicts or disputes with our collaborators, and competition from them, could harm our relationships
with our other collaborators, restrict our ability to enter future collaboration agreements and delay the research, development
or commercialization of our product candidates. If any collaborative partner terminates or breaches its agreement, or otherwise
fails to complete its obligations in a timely manner, our chances of successfully developing or commercializing these product
candidates would be materially and adversely affected. We may not be able to enter into collaborative agreements with partners
on terms favorable to us, or at all. Our inability to enter into collaborative arrangements with collaborative partners, or our
failure to maintain such arrangements, would limit the number of product candidates that we could develop and ultimately, decrease
our sources of any future revenues.

 If we are unsuccessful in obtaining a priority review voucher for material threat
medical countermeasures, the length of the approval process for our TNX-801 vaccine in development to prevent smallpox and mpox will be
longer than the approval process with the priority review voucher.

 Section 3086, of the 21 st Century Cures Act, or the Act, is
aimed at "Encouraging Treatments for Agents that Present a National Security Threat." The Act created a new priority review
voucher program for approved "material threat medical countermeasures." The Act defines such countermeasures as drug or biologic
products, including vaccines, intended to treat biological, chemical, radiological, or nuclear agents that present a national security
threat or to treat harm from a condition that may be caused by administering a drug or biological product against such an agent. The Department
of Homeland Security has identified 13 such threats, including anthrax, smallpox, Ebola/Marburg, tularemia, botulinum toxin, and pandemic
influenza, which includes the SARS coronavirus 2 known as SARS-CoV-2. A priority review voucher can be applied to any other product; it
shortens the FDA review timeline for a new application from 10 to 12 months to 6 months. The recipient of a priority review voucher may
transfer it in some instances for a significant amount of money. If we are not successful in obtaining a priority review voucher for TNX-801,
we would not receive the benefit from the voucher.

 There
may not be market interest in TNX-801.

 The
government is the only market for most medical countermeasures. This is because unlike other drugs and vaccines, these products
are not sold to doctors, hospitals, or pharmacies. The BioShield Special Reserve Fund, or SRF, has been the sole medical countermeasures
market for the last decade. The SRF is now appropriated annually and has not kept pace with the need for purchasing products ready
for stockpiling. During 2020, $735 million was appropriated to SRF. As such, even if TNX-801 were to receive FDA licensure, the
commercial success of TNX-801 remains uncertain.

 Government
entities may take actions that directly or indirectly have the effect of limiting opportunities for our vaccine candidates for
COVID-19.

 Various
government entities, including the U.S. government, are offering incentives, grants and contracts to encourage additional investment
by commercial organizations into preventative and therapeutic agents against COVID-19, which may have the effect of increasing
the number of competitors and/or providing advantages to competitors. Accordingly, there can be no assurance that we will be able
to successfully establish a competitive market share if we ultimately receive regulatory approval for our vaccines as a vaccine
for COVID-19. COVID-19 vaccines may also be subject to government pricing controls, which could adversely affect the profitability
of any COVID-19 vaccine we are able to develop and commercialize.

 If
technology developed for the purposes of developing new medicines or vaccines can be applied to the creation or development of
biological weapons, then our technology may be considered "dual use" technology and be subject to limitations on public
disclosure or export.

 Our
research and development of synthetic poxviruses is dedicated not only to creating tools that better protect public health but
also to safeguarding any information with broad, dual-use potential that could be inappropriately applied. "Dual use research"
is research conducted for legitimate purposes that generates knowledge, information, technologies, and/or products that can be
reasonably anticipated to provide knowledge, information, products, or technologies that could be directly misapplied to pose
a significant threat to public health, agricultural crops, or national security. Because variola, the agent that causes smallpox,
is a pox virus, the technology we created could be considered dual use and could be subject to export control, for example under
the Wassenaar Arrangement. Further, if federal authorities determine that our research is subject to institutional oversight,
we will need to implement a risk-management plan developed in collaboration with the institutional review entity. Failure to comply
with the plan may result in suspension, limitation, or termination of federal funding or loss of future federal funding opportunities
for any of our research.

 We
face risks in connection with existing and future collaborations with respect to the development, manufacture, and commercialization
of our product candidates.

 We
face a number of risks in connection with our current collaborations. Our collaboration agreements are subject to termination
under various circumstances. Our collaborators may change the focus of their development and commercialization efforts or may
have insufficient resources to effectively assist in the development of our products. Any future collaboration agreements may
have the effect of limiting the areas of research and development that we may pursue, either alone or in collaboration with third
parties. Further, disagreements with collaborators, including disagreements over proprietary rights, contract interpretation,
or the preferred course of development, might cause delays, might result in litigation or arbitration, or might result in termination
of the research, development or commercialization of our products. Any such disagreements would divert management attention and
resources and be time-consuming and costly.

 We
face risks in connection with the testing, production and storage of our vaccine product candidates.

 Developing our TNX-1800 and TNX-801 vaccine candidates each require testing
of challenges with rabbitpox, vaccinia mpox or SARS-CoV-2 viruses under controlled experimental conditions. The testing of TNX-1800 and
TNX-801 may carry risk of infection and harm to individuals.

 In addition, our TNX-1800 and TNX-801 vaccine candidates are both live
forms of the horsepox. We have initiated vaccine-manufacturing activities to support further nonclinical testing of TNX-801. The production
and storage of the synthesized horsepox virus stock and, once initiated, TNX-1800 virus stock, may carry risk of infection and harm to
individuals. Any such infection could expose us to product and general liability claims, and may carry risk of infection and harm to individuals.

 RISKS
RELATED TO OUR STOCK

 Sales
of additional shares of our common stock could cause the price of our common stock to decline.

 Sales
of substantial amounts of our common stock in the public market, or the availability of such shares for sale, by us or others,
including the issuance of common stock upon exercise of outstanding options and warrants, could adversely affect the price of
our common stock. We and our directors and officers may sell shares into the market, which could adversely affect the market price
of shares of our common stock.

 An
active trading market for our common stock may not be sustained.

 Although
our common stock is listed on the NASDAQ Capital Market, the market for our shares has demonstrated varying levels of trading
activity. Furthermore, the current level of trading may not be sustained in the future. The lack of an active market for our common
stock may impair investors' ability to sell their shares at the time they wish to sell them or at a price that they consider
reasonable, may reduce the fair market value of their shares and may impair our ability to raise capital to continue to fund operations
by selling shares and may impair our ability to acquire additional intellectual property assets by using our shares as consideration.

 The
market price of our common stock has been extremely volatile and may continue to be volatile due to numerous circumstances beyond
our control.

 The
market price of our common stock has fluctuated, and may continue to fluctuate, widely, due to many factors, some of which may
be beyond our control. These factors include, without limitation:

 "short squeezes";

 "short sellers";

 comments by securities analysts or other third
 parties, including blogs, articles, message boards and social and other media;

 large stockholders exiting their position in
 our common stock or an increase or decrease in the short interest in our common stock;

 actual or anticipated fluctuations in our financial
 and operating results;

 the timing and allocations of new product candidates;

 public perception of our product candidates
 and competitive products;

 changes in financial estimates or recommendations
 by securities analysts;

 changes in the reimbursement policies of third
 party insurance companies or government agencies; and

 overall general market fluctuations.

 Stock
markets in general and our stock price in particular have experienced extreme price and volume fluctuations that have often been
unrelated or disproportionate to the operating performance of those companies and our company. Broad market fluctuations may adversely
affect the trading price of our common stock. In particular, a proportion of our common stock has been and may continue to be
traded by short sellers which may put pressure on the supply and demand for our common stock, further influencing volatility in
its market price. Additionally, these and other external factors have caused and may continue to cause the market price and demand
for our common stock to fluctuate, which may limit or prevent investors from readily selling their shares of common stock and
may otherwise negatively affect the liquidity of our common stock.

 A
"short squeeze" due to a sudden increase in demand for shares of our common stock that largely could lead to extreme
price volatility in shares of our common stock.

 Investors
may purchase shares of our common stock to hedge existing exposure or to speculate on the price of our common stock. Speculation
on the price of our common stock may involve long and short exposures. To the extent aggregate short exposure exceeds the number
of shares of our common stock available for purchase on the open market, investors with short exposure may have to pay a premium
to repurchase shares of our common stock for delivery to lenders of our common stock. Those repurchases may in turn, dramatically
increase the price of our common stock until additional shares of our common stock are available for trading or borrowing. This
is often referred to as a "short squeeze." A proportion of our common stock has been and may continue to be traded
by short sellers which may increase the likelihood that our common stock will be the target of a short squeeze. A short squeeze
could lead to volatile price movements in shares of our common stock that are unrelated or disproportionate to our operating performance
or prospectus and, once investors purchase the shares of our common stock necessary to cover their short positions, the price
of our common stock may rapidly decline. Investors that purchase shares of our common stock during a short squeeze may lose a
significant portion of their investment.

 We
could be delisted from Nasdaq, which could seriously harm the liquidity of our stock and our ability to raise capital.

 If
we are unable to maintain compliance with the Minimum Bid Price or other listing requirements, we could lose eligibility for continued
listing on the Nasdaq Capital Market or any comparable trading market. In such event:

 We may have to pursue
 trading on a less recognized or accepted market, such as the OTC Bulletin Board or the "pink sheets."

 Shares of our common
 stock could be less liquid and marketable, thereby reducing the ability of stockholders to purchase or sell our shares as
 quickly and as inexpensively as they have done historically. If our stock is traded as a "penny stock," transactions
 in our stock would be more difficult and cumbersome.

 We may be unable
 to access capital on favorable terms or at all, as companies trading on alternative markets may be viewed as less attractive
 investments with higher associated risks, such that existing or prospective institutional investors may be less interested
 in, or prohibited from, investing in our common stock. This may also cause the market price of our common stock to decline.

 We
do not anticipate paying dividends on our common stock and, accordingly, shareholders must rely on stock appreciation for any
return on their investment.

 We
have never declared or paid cash dividends on our common stock and do not expect to do so in the foreseeable future. The declaration
of dividends is subject to the discretion of our board of directors and will depend on various factors, including our operating
results, financial condition, future prospects and any other factors deemed relevant by our board of directors. You should not
rely on an investment in our company if you require dividend income from your investment in our company. The success of your investment
will likely depend entirely upon any future appreciation of the market price of our common stock, which is uncertain and unpredictable.
There is no guarantee that our common stock will appreciate in value.

 We
expect that our quarterly results of operations will fluctuate, and this fluctuation could cause our stock price to decline.

 Our
quarterly operating results are likely to fluctuate in the future. These fluctuations could cause our stock price to decline.
The nature of our business involves variable factors, such as the timing of the research, development and regulatory pathways
of our product candidates, which could cause our operating results to fluctuate.

 Due
to the possibility of fluctuations in our revenues and expenses, we believe that quarter-to-quarter comparisons of our operating
results are not a good indication of our future performance.

 The
rights of the holders of common stock may be impaired by the potential issuance of preferred stock.

 Our
articles of incorporation give our board of directors the right to create new series of preferred stock. As a result, the board
of directors may, without stockholder approval, issue preferred stock with voting, dividend, conversion, liquidation or other
rights which could adversely affect the voting power and equity interest of the holders of common stock. Preferred stock, which
could be issued with the right to more than one vote per share, could be utilized as a method of discouraging, delaying or preventing
a change of control. The possible impact on takeover attempts could adversely affect the price of our common stock. Although we
have no present intention to issue any shares of preferred stock or to create a series of preferred stock, we may issue such shares
in the future.

 If
we fail to comply with the rules under the Sarbanes-Oxley Act of 2002 related to accounting controls and procedures, or if we
discover material weaknesses and deficiencies in our internal control and accounting procedures, our stock price could decline
significantly and raising capital could be more difficult.

 If
we fail to comply with the rules under the Sarbanes-Oxley Act of 2002 related to disclosure controls and procedures, or, if we
discover material weaknesses and other deficiencies in our internal control and accounting procedures, our stock price could decline
significantly and raising capital could be more difficult. Section 404 of the Sarbanes-Oxley Act requires annual management assessments
of the effectiveness of our internal control over financial reporting. If material weaknesses or significant deficiencies are
discovered or if we otherwise fail to achieve and maintain the adequacy of our internal control, we may not be able to ensure
that we can conclude on an ongoing basis that we have effective internal controls over financial reporting in accordance with
Section 404 of the Sarbanes-Oxley Act. Moreover, effective internal controls are necessary for us to produce reliable financial
reports and are important to helping prevent financial fraud. If we cannot provide reliable financial reports or prevent fraud,
our business and operating results could be harmed, investors could lose confidence in our reported financial information, and
the trading price of our common stock could drop significantly.

 If
securities or industry analysts do not publish research or reports about our business, or if they change their recommendations
regarding our stock adversely, our stock price and trading volume could decline.

 The
trading market for our common stock will be influenced by the research and reports that industry or securities analysts publish
about us or our business. Our research coverage by industry and financial analysts is currently limited. Even if our analyst coverage
increases, if one or more of the analysts who cover us downgrade our stock, our stock price would likely decline. If one or more
of these analysts cease coverage of our company or fail to regularly publish reports on us, we could lose visibility in the financial
markets, which in turn could cause our stock price or trading volume to decline.

 Other
companies may have difficulty acquiring us, even if doing so would benefit our stockholders, due to provisions under our corporate
charter and bylaws, as well as Nevada law.

 Provisions
in our articles of incorporation, our bylaws, and under Nevada law could make it more difficult for other companies to acquire
us, even if doing so would benefit our stockholders. Our articles of incorporation and bylaws contain the following provisions,
among others, which may inhibit an acquisition of our company by a third party:

 advance notification
 procedures for matters to be brought before stockholder meetings

 a limitation on
 who may call stockholder meetings

 a limitation on
 the removal of directors

 the ability of our
 board of directors to issue up to 5,000,000 shares of preferred stock without a stockholder vote

 We
are also subject to provisions of Nevada law that prohibit us from engaging in any business combination with any "interested
stockholder," meaning generally that a stockholder who beneficially owns 10 percent or more of our stock cannot acquire
us for a period of time after the date this person became an interested stockholder, unless various conditions are met, such as
approval of the transaction by our board of directors and stockholders.

 Our
bylaws designate the Eighth Judicial District Court of Clark County, Nevada as the sole and exclusive forum for certain types
of actions and proceedings that may be initiated by our stockholders, which could limit our stockholders' ability to obtain
a favorable judicial forum for disputes with us or our directors, officers, employees or agents.

 Our
bylaws require that, to the fullest extent permitted by law, and unless the Company consents in writing to the selection of an
alternative forum, the Eighth Judicial District Court of Clark County, Nevada, will, to the fullest extent permitted by law, be
the sole and exclusive forum for each of the following:

 any derivative action
 or proceeding brought in the name or right of the Company or on its behalf,

 any action asserting
 a claim for breach of any fiduciary duty owed by any director, officer, employee or agent of the Company to the Company or
 the Company's stockholders,

 any action arising
 or asserting a claim arising pursuant to any provision of NRS Chapters 78 or 92A or any provision of our articles of incorporation
 or bylaws, or

 any action asserting
 a claim governed by the internal affairs doctrine, including, without limitation, any action to interpret, apply, enforce
 or determine the validity of our articles of incorporation or bylaws.

the applicability of the exclusive forum provision is limited to the extent permitted by law, we believe that the exclusive forum
provision would not apply to suits brought to enforce any duty or liability created by the Securities Exchange Act of 1934, as
amended (Exchange Act), or any other claim for which the federal courts have exclusive jurisdiction, and that federal courts have
concurrent jurisdiction over all suits brought to enforce any duty or liability created by the Securities Act of 1933, as amended
(Securities Act). We note that there is uncertainty as to whether a court would enforce the provision and that investors cannot
waive compliance with the federal securities laws and the rules and regulations thereunder. Although we believe this provision
benefits us by providing increased consistency in the application of Nevada law in the types of lawsuits to which it applies,
the provision may have the effect of discouraging lawsuits against our directors and officers.

 ITEM
1B – UNRESOLVED STAFF COMMENTS

 There
are no unresolved staff comments at December 31, 2024.

 ITEM 1C
– Cybersecurity

 Cybersecurity
Risk Management

 We face several cybersecurity risks in connection with our business. Our business strategy,
results of operations, and financial condition have not, to date, been affected by risks from cybersecurity threats. During the
reporting period, we have not experienced any material cyber incidents, nor have we experienced a series of immaterial incidents,
which would require disclosure.

 In
the ordinary course of our business, we use, store and process data including data of our employees, partners, collaborators,
and vendors. To effectively prevent, detect, and respond to cybersecurity threats, we maintain a cyber risk management program,
which is comprised of a wide array of policies, standards, architecture, and processes. The cyber risk management program falls
under the responsibility of our Director of Information Technology ("IT"), who has cross-functional expertise
in IT, computer science, cyber security, and more than 20 years of experience. The IT Director leads a team of IT specialists
with similar IT and cybersecurity backgrounds. Under the guidance of our IT Head, we develop, maintain, and evidence the policies,
standards, and processes in a manner consistent with applicable legal requirements. We also utilize a variety of cybersecurity
software from reputable vendors in cybersecurity.

 We
have implemented a cybersecurity risk management program that is designed to identify, assess, and mitigate risks from cybersecurity
threats to this data and our systems and ensure the effectiveness of our security controls. Our cybersecurity risk management
program is intended to address applicable NIST 800-171 & CMMC requirements for our business. Our cybersecurity risk management
program incorporates several components, including information security program assessments, continuous monitoring of critical
risks from cybersecurity threats using automated tools, backup testing, periodic threat testing, and documented standards, policies,
and procedures. We deploy a wide range of security tools across the environment, and implement access control policies to further
limit access to data within the systems.

 We
periodically engage third parties to conduct risk assessments, including penetration testing, tabletops and other system vulnerability
analyses. As a result of these assessments and testing, we have not identified any material cybersecurity risks and are constantly
hardening our environment. Additionally, our program includes annual cybersecurity training for all employees.

 Cybersecurity
Governance

 Our
Board of Directors ("Board") is responsible for the oversight of cybersecurity risk management. The Board delegates
oversight of the cybersecurity risk management program to the Information Security Oversight Committee ("ISOC"). The
Chief Financial Officer ("CFO"), who serves on ISOC, provides updates to the Audit Committee on our cybersecurity
risk management program, including any critical cybersecurity risks, ongoing cybersecurity initiatives and strategies, and applicable
regulatory requirements and industry standards on a quarterly basis. The CFO also notifies the Board and Audit Committee of any
cybersecurity incidents (suspected or actual) and provides updates on the incidents as well as cybersecurity risk mitigation activities
as appropriate.

 ITEM
2 – PROPERTIES

 We
maintain our principal office at 26 Main Street, Suite 101, Chatham, New Jersey 07928. Our telephone number at that office is
(862) 799-8599 and our fax number is (212) 923-5700. On August 28, 2020, we entered into a lease, whereby we agreed to lease new
office space, commencing September 2020 and expiring December 2025. In connection therewith, we maintain a letter of credit, which
has a remaining balance of $144,745 as of December 31, 2024, and such amount is deposited into the restricted cash account maintained
at the bank that issued the letter of credit.

 We
own and operate a research and development facility in Frederick, Maryland used for process development activities.

 We own an approximately 44-acre site in Hamilton, Montana, for the construction
of a vaccine development and commercial scale manufacturing facility. As of December 31, 2024, the facility was not ready for its intended
use.

 We
own a 45,000 square foot facility in North Dartmouth, Massachusetts that houses our Advanced Development ("ADC"), for accelerated development and manufacturing of vaccines. During the fourth quarter of 2023, the
Company engaged CBRE, an international real estate brokerage firm, to potentially find a strategic partner for, or buyer of, its
ADC. During the second quarter of 2024, the Company decommissioned its ADC facility. As of December 31, 2024, the Company does
not have a commitment in place to sell the ADC.

 Future
minimum lease payments are as follows (in thousands):

 Year Ending December 31,

 2025

 $

 2026

 2027

 2028

 2029

 Included interest

 (56

)

 $

 We
believe that our existing facilities are suitable and adequate to meet our current business requirements.

 ITEM
3 – LEGAL PROCEEDINGS

 From
time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business.
However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time
to time that may harm our business. We are currently not aware of any such legal proceedings or claims that we believe will have,
individually or in the aggregate, a material adverse effect on our business, financial condition, operating results or cash flows.

 ITEM
4 – MINE SAFETY DISCLOSURES

 Not
applicable.

 PART
II

 ITEM
5 – MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

 Market
Information

 Our
common stock is listed on The NASDAQ Capital Market under the symbol "TNXP".

 Holders

 On
March 17, 2025, the closing sale price of our common stock, as reported by The NASDAQ Stock Market, was $16.28 per share. On March
17, 2025, there were approximately 220 holders of record of our common stock. Because many of our shares of common stock are held by brokers
and other institutions on behalf of stockholders, we are unable to estimate the total number of stockholders represented by these
record holders.

 Dividend
Policy

 We
have never paid any cash dividends on our capital stock and do not anticipate paying any cash dividends on our common stock in
the foreseeable future. We intend to retain future earnings to fund ongoing operations and future capital requirements of
our business. Any future determination to pay cash dividends will be at the discretion of the Board and will be dependent upon
our financial condition, results of operations, capital requirements and such other factors as the Board deems relevant.

 Recent
Sales of Unregistered Securities

 None.

 Repurchases
of Equity Securities by the Issuer and Affiliated Purchasers

 In September 2024, the Board of Directors approved a share repurchase program
pursuant to which we may repurchase up to $10.0 million in value of our outstanding common stock from time to time on the open market
and in privately negotiated transactions subject to market conditions, share price and other factors. No repurchases occurred during the
quarter ended December 31, 2024. Subsequent to December 31, 2024, we repurchased 250,000 of our shares
of common stock outstanding under the share repurchase program at prices ranging from $9.98 to $14.33 per share for a gross aggregate
cost of approximately $3.0 million.

 ITEM
6 – [RESERVED]

 ITEM
7 – MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 This
Management's Discussion and Analysis of Financial Condition and Results of Operations includes a number of forward-looking
statements that reflect Management's current views with respect to future events and financial performance. You can identify
these statements by forward-looking words such as "may" "will," "expect," "anticipate,"
"believe," "estimate" and "continue," or similar words. Those statements include statements
regarding the intent, belief or current expectations of us and members of its management team as well as the assumptions on which
such statements are based and should be read together with the "Risk Factors" section of this Annual Report on Form 10-K
for a discussion of important factors that could cause actual results to differ materially from the results described in or implied
by the forward-looking statements contained in the following discussion and analysis. Our actual results could differ materially
from those anticipated in these forward-looking statements as a result of various factors, including those discussed below and
elsewhere in this Annual Report and in other reports we file with the Securities and Exchange Commission, particularly those under
"Risk Factors.".

 We are a fully-integrated biopharmaceutical company focused on transforming
therapies for pain management and vaccines for public health challenges. Our development portfolio is focused on central nervous system
(CNS) disorders. Our priority is to advance TNX-102 SL, a product candidate for the management of fibromyalgia, for which an NDA was submitted
based on two statistically significant Phase 3 studies for the management of fibromyalgia and for which a PDUFA (Prescription Drug User
Fee act) goal date of August 15, 2025 has been assigned for a decision on marketing authorization. The FDA has also granted Fast Track
designation to TNX-102 SL for the management of fibromyalgia. TNX-102 SL is also being developed to treat acute stress reaction and acute
stress disorder under a Physician-Initiated IND at the University of North Carolina in the OASIS study funded by the U.S. Department of
Defense (DoD). Tonix's CNS portfolio includes TNX-1300 (cocaine esterase), a biologic in Phase 2 development designed to treat cocaine
intoxication that has FDA Breakthrough Therapy designation, and its development is supported by a grant from the National Institute on
Drug Abuse. Tonix's immunology development portfolio consists of biologics to address organ transplant rejection, autoimmunity and
cancer, including TNX-1500, which is an Fc-modified humanized monoclonal antibody targeting CD40-ligand (CD40L or CD154) being developed
for the prevention of allograft rejection and for the treatment of autoimmune diseases. Tonix also has product candidates in development
in infectious disease, including a vaccine for mpox, TNX-801. We recently announced a contract with the U.S. DoD's Defense Threat
Reduction Agency (DTRA) for up to $34 million over five years to develop TNX-4200, small molecule broad-spectrum antiviral agents targeting
CD45 for the prevention or treatment of infections to improve the medical readiness of military personnel in biological threat environments.
We own and operate a state-of-the art infectious disease research facility in Frederick, Maryland. Tonix Medicines, our commercial subsidiary,
markets Zembrace SymTouch (sumatriptan injection) 3 mg and Tosymra (sumatriptan nasal spray) 10 mg for the treatment of
acute migraine with or without aura in adults.

 Our
product development candidates are investigational new drugs or biologics and have not been approved for any indication.

 Zembrace
SymTouch and Tosymra are registered trademarks of Tonix Medicines. All other marks are the property of their respective owners.
We are led by a management team with significant industry experience in drug development.

 We
complement our management team with a network of scientific, clinical, and regulatory advisors that includes recognized experts
in their respective fields.

 Results
of Operations

 We
anticipate that our results of operations will fluctuate for the foreseeable future due to several factors, such as the sale of
our commercialized assets, progress of our research and development efforts and the timing and outcome of regulatory submissions.
Due to these uncertainties, accurate predictions of future operations are difficult or impossible to make. Since the acquisition
of Zembrace and Tosymra on June 30, 2023, we are now reporting product revenue and related costs.

 Fiscal
year Ended December 31, 2024 Compared to Fiscal year Ended December 31, 2023

 The
following table sets forth our operating expenses for the fiscal years ended December 31, 2024 and 2023 (in thousands):

 2024

 2023

 REVENUE

 Product revenue, net

 $
 10,094

 $
 7,768

 COSTS AND EXPENSES:

 Cost of sales

 $
 7,765

 $
 4,741

 Research and development

 39,972

 86,655

 Selling, general and administrative

 40,101

 34,752

 Asset impairment charges

 58,957

 —

 Total operating expenses

 146,795

 126,148

 Operating loss

 (136,701
)

 (118,380
)

 Grant income

 2,594

 —

 Gain on change in fair value of warrant liabilities

 6,150

 —

 Other (expense) income, net

 (2,079
)

 1,722

 $
 (130,036
)

 $
 (116,658
)

 Revenues. The
Company recognized revenue beginning in the year ended December 31, 2023, as a result of the acquisition of two marketed products.
See discussion at Note 11 to our financial statements appearing in this Annual Report on Form 10-K. Revenue recognized for the
year ended December 31, 2024 and 2023 was $10.1 and $7.8 million, respectively.

 The
Company's net product revenues are summarized below:

 Year Ended December 31,

 2024

 2023

 Zembrace Symtouch

 $
 8,546

 $
 6,304

 Tosymra

 1,548

 $
 1,464

 Total product revenues

 $
 10,094

 $
 7,768

 Cost of
Sales. The Company recognized cost of sales beginning in the year ended December 31, 2023 as a result of the acquisition of
Zembrace and Tosymra from Upsher-Smith Laboratories ("Upsher Smith"). See discussion at Note 11 to our financial
statements appearing in this Annual Report on Form 10-K. Cost of goods sold during the year ended December 31, 2024, was $7.8
million, including write-downs related to Tosymra and Zembrace finished goods inventory of approximately $1.5 million based on an
assessment of inventory on hand and projected sales prior to the respective expiration dates. Cost of sales recognized for the year
ended December 31, 2023, was $4.7 million.

 Research
and Development Expenses. Research and development expenses for the fiscal year ended December 31, 2024, were $40.0
million, a decrease of $46.7 million, or 54%, from $86.7 million for the fiscal year ended December 31, 2023. This decrease is
predominately due to decreased clinical expenses of $18.8 million, non-clinical expenses of $10.5 million, manufacturing expenses
of $3.1 million as a result of fewer trials in the clinic and pipeline prioritization period over period, employee-related expenses
of $7.1 and lab supplies of $4.1 million due to a reduction in expenditures, predominately as a result of the decommission of the ADC and reduction in force earlier in 2024.

 In
August 2022, we received a Cooperative Agreement grant from the National Institute on Drug Abuse ("NIDA"), part of
the National Institutes of Health, to support the development of its TNX-1300 product candidate for the treatment of cocaine intoxication.
During the year ended December 31, 2024 and 2023, we recorded $1.6 and $2.9 million, respectively in funding as a reduction of
related research and development expenses.

 The
table below summarizes our direct research and development expenses for our product candidates and development platform for the
years ended December 31, 2024, and 2023.

 December
31,
 (in
thousands)

 2024

 2023

 Change

 Research and development expenses:

 Direct expenses – TNX - 102 SL

 $
 4,616

 $
 12,250

 $
 (7,634
)

 Direct expenses – TNX - 1800

 1,608

 (1,289
)

 Direct expenses – TNX - 601 ER

 8,531

 (7,954
)

 Direct expenses – TNX - 801

 2,931

 (2,332
)

 Direct expenses – TNX - 1500

 2,772

 7,044

 (4,272
)

 Direct expenses – TNX - 1900

 1,427

 5,254

 (3,827
)

 Direct expenses – Other programs

 1,716

 6,826

 (5,110
)

 Internal staffing, overhead and other

 27,946

 42,211

 (14,265
)

 Total research & development

 $
 39,972

 $
 86,655

 $
 (46,683
)

 Our
direct research and development expenses consist principally of external costs for clinical, nonclinical, and manufacturing, such
as fees paid to contractors, consultants and CROs in connection with our development work. Included in "Internal Staffing,
Overhead and Other" is overhead, supplies, research and development employee costs (including stock option expenses), travel,
regulatory and legal.

 Selling,
General and Administrative Expenses. Selling, General and administrative expenses for the fiscal year ended December
31, 2024, were $40.1 million, an increase of $5.3 million, or 15%, from $34.8 million incurred in the fiscal year ended December 31,
2023. The increase is primarily due to an increase in financial reporting expenses of $1.2 million, related to the special
shareholder meetings in 2024, an increase in sales and marketing of $1.2 million, an increase in professional fees of $2.7 million,
an increase in depreciation of property and equipment of $0.4 million and an increase in fees and permits of $0.4 million, related
to licenses obtained to sell the migraine products, offset by a decrease in employee-related costs of $1.0 million, due to fewer employees.

 Asset
impairment charges. We recognized a non-cash impairment charge of $48.8 million related to property and equipment, a non-cash
impairment of $1.0 million related to goodwill, and a non-cash impairment charge of $9.2 million related to intangible assets,
which is reflected in asset impairment charges in the consolidated statements of operations for the year ended December 31, 2024.

 The
impairment of the Tosymra and Zembrace inventory, intangibles and goodwill was driven by our delayed investment in the sales personnel
required to drive growth in the business as we are focusing our cash resources to further our efforts to bring TNX-102 SL through
the approval process and to market. However, we believe that the benefits and long-term value proposition of the 2023 acquisition
of Tosymra and Zembrace remain, in that we now have the infrastructure to be ready to manufacture and sell TNX-102 SL under an
expedited timeline pending FDA approval for which we expect an FDA decision in 2025.

 Net
Loss. As a result of the foregoing, the net loss for the year ended December 31, 2024, was $130.0 million, compared to
a net loss of $116.7 million for the year ended December 31, 2023.

 License
Agreements

 On
February 13, 2023, we exercised an option to obtain an exclusive license from Columbia University ("Columbia") for
the development of a portfolio of fully human and murine mAbs for the treatment or prophylaxis of SARS-CoV-2 infection, including
our TNX-3600 and TNX-4100 product candidates, respectively. The licensed mAbs were developed as part of a research collaboration
and option agreement between us and Columbia. As of December 31, 2024, other than the upfront fee, no payments have been accrued
or paid in relation to this agreement.

 Asset
Purchase Agreements

 On
June 23, 2023, we entered into an asset purchase agreement with Upsher Smith for the acquisition of certain assets related to
Zembrace and Tosymra (such businesses collectively, the "Business") and certain inventory related to the Business
for an aggregate purchase price of approximately $26.5 million, including certain deferred payments (such transaction, the "USL
Acquisition"). The transaction closed on June 30, 2023.

in connection with the acquisition from Upsher Smith, we and Upsher Smith entered into a transition services agreement pursuant
to which Upsher Smith agreed to provide certain transition services to us for base fees equal to $100,000 per month for the first
six months, and $150,000 per month for the seventh through ninth months, plus additional monthly fees for each service category
totaling up to $150,000 per month. We have signed an amendment to the transitional services agreement with Upsher Smith so that
Upsher Smith will continue to manage certain government rebates, and Upsher Smith will be reimbursed by us at cost for any rebates
they pay on our behalf.

 As
the assets acquired from Upsher Smith met the definition of a business under the current accounting guidance, the total purchase
price was allocated to the acquired inventory and other tangible assets, and the developed technology intangible assets related
to Zembrace and Tosymra based on their estimated fair values on the acquisition date. The excess of the purchase price over the
fair value of the acquired assets was recorded as goodwill.

 We
have assumed certain obligations of Upsher Smith, including the payment of quarterly royalty payments on annual net sales from
the Business in the U.S. as follows: for Tosymra, 4% for net sales of $0 to $30 million, 7% of net sales of $30 to $75 million;
9% for net sales of $75 to $100 million; 12% for net sales of $100 to $150 million; and 15% for net sales greater than $150 million.
Royalty payments with respect to Tosymra are payable until the expiration or termination of the product's Orange Book listed
patent(s) with respect to the United States or, outside the United States, the expiration of the last valid claim covering the
product in the relevant country of the territory. For Zembrace, royalty payments on annual net sales in the U.S. are 3% for net
sales of $0 to $30 million, 6% of net sales of $30 to $75 million; 12% for net sales of $75 to $100 million; 16% for net sales
of greater than $100 million. Such royalty payments are payable until July 19, 2025. Upon the entry of a generic version of the
relevant product, the applicable royalty rates will be reduced by 90% percent for Zembrace, and by 66.7% percent for Tosymra.

 In
addition, we have assumed the obligation to pay an additional 3% royalty on net sales of Tosymra, plus an additional 3% if a patent
containing certain claims related to Tosymra issues in the U.S., for 15 years from the first commercial sale of Tosymra in the
applicable country or for as long as the manufacture, use or sale of Tosymra in such country is covered by a valid claim of a
licensed patent, and up to $15 million per Tosymra product on the achievement of sales milestones.

 On
February 2, 2023, we entered into an asset purchase agreement with Healion Bio Inc., pursuant
to which we acquired all the pre-clinical infectious disease assets of Healion for $1.2 million. Because the Healion intellectual
property was acquired prior to FDA approval, the $1.2 million cash consideration was expensed as research and development costs
since there is no alternative future use and the acquired intellectual property does not constitute a business.

 Liquidity
and Capital Resources

 As of December 31, 2024, we had working capital of $100.7 million, comprised
primarily of cash and cash equivalents of $98.8 million, accounts receivable, net of $3.7 million, inventory of $8.4 million, and prepaid
expenses and other of $8.1 million, offset by $4.5 million of accounts payable, $10.7 million of accrued expenses and other current liabilities,
$2.8 million of term loan payable, short term and $0.3 million of lease liabilities, short term. A significant portion of the accounts
payable and accrued expenses are due to work performed in relation to our clinical programs.

 The
following table provides a summary of operating, investing, and financing cash flows for the years ended December 31, 2024, and
2023, respectively (in thousands):

 2024

 2023

 Net
 cash used in operating activities

 $

 (60,925

)

 $

 (102,003

)

 Net
 cash used in investing activities

 (120

)

 (29,070

)

 Net
 cash provided by financing activities

 134,872

 36,517

 For
the years ended December 31, 2024, and 2023, we used approximately $60.9 million and $102.0 million of cash in operating activities,
respectively, which represents cash outlays for research and development and general and administrative expenses in such periods.
The decrease in cash outlays principally resulted from a decrease in research and development expense.

 Cash
used by investing activities for the year ended December 31, 2024, was approximately $0.1 million related to the purchase of property
and equipment. Cash used by investing activities for the year ended December 31, 2023, was approximately $29.1 million related
to the purchase of Zembrace and Tosymra assets and property and equipment.

 For
the year ended December 31, 2024, net proceeds from financing activities were $134.9 million, primarily related to the sale of
common stock and warrants. For the year ended December 31, 2023, net proceeds from financing activities were $36.5 million, predominately
from the sale of our common stock and warrants; and debt raised which was offset by repurchase of common stock.

 We
believe that our cash resources at December 31, 2024 and the proceeds that we raised from equity offerings in the first quarter
of 2025, will meet our operating and capital expenditure requirements into the first quarter of 2026, but not beyond.

 We
continue to face significant challenges and uncertainties and, as a result, our available capital resources may be consumed more
rapidly than currently expected due to changes we may make in our research and development spending plans. These factors raise
substantial doubt about our ability to continue as a going concern for the one-year period from the date of filing of this Form
10-K. We must obtain additional funding through public or private financing or collaborative arrangements with strategic partners
to increase the funds available to fund operations. Without additional funds, we may be forced to delay, scale back or eliminate
some of our research and development activities, or other operations and potentially delay product development to provide sufficient
funds to continue our operations. If any of these events occurs, our ability to achieve our development and commercialization
goals would be adversely affected and we may be forced to cease operations.

 Future
Liquidity Requirements

 We
expect to incur losses from operations for the near future. We expect to incur increasing research and development expenses, including
expenses related to additional clinical trials and the build out of our research and development operations and manufacturing.
We will not have enough resources to meet our operating requirements for the one-year period from filing date of this report.

 Our
future capital requirements will depend on a number of factors, including the progress of our research and development of product
candidates, the timing and outcome of regulatory approvals, the costs involved in preparing, filing, prosecuting, maintaining,
defending and enforcing patent claims and other intellectual property rights, the status of competitive products, the availability
of financing and our success in developing markets for our product candidates.

 We
will need to obtain additional capital in order to fund future research and development activities. Future financing may include
the issuance of equity or debt securities, obtaining credit facilities, or other financing mechanisms. Even if we are able to
raise the funds required, it is possible that we could incur unexpected costs and expenses, fail to collect significant amounts
owed to us, or experience unexpected cash requirements that would force us to seek alternative financing. Furthermore, if we issue
additional equity or debt securities, shareholders may experience additional dilution or the new equity securities may have rights,
preferences or privileges senior to those of existing holders of our common stock.

 If
additional financing is not available or is not available on acceptable terms, we may be required to delay, reduce the scope of
or eliminate our research and development programs, reduce our commercialization efforts or obtain funds through arrangements
with collaborative partners or others that may require us to relinquish rights to certain product candidates that we might otherwise
seek to develop or commercialize independently.

 2024
At-the-Market Offering

 On
July 30, 2024, we entered into a Sales Agreement with AGP pursuant to which we may issue and sell, from time to time, shares of
our common stock having an aggregate offering price of up to $250.0 million in the ATM. AGP will act as sales agent and will be
paid a 3% commission on each sale under the Sales Agreement. Our common stock will be sold at prevailing market prices at the
time of the sale, and, as a result, prices will vary. During the year ended December 31, 2024, we sold approximately 4.2 million
shares of common stock under the Sales Agreement, for net proceeds of approximately $128.4 million. Subsequent to December 31,
2024, we sold 2.3 million shares of common stock under the Sales Agreement, for net proceeds of approximately $46.3 million.

 July
2024 Financing

 On
July 9, 2024, we entered into a securities purchase agreement with certain institutional and retail investors, pursuant to which
we sold 33,936 shares of common stock and pre-funded warrants to purchase up to 37,032 shares of common stock. The offering price
per share of common stock was $57.00, and the offering price per share of pre-funded warrant was $56.99.

 The
offering closed on July 10, 2024. We incurred offering expenses of approximately $0.5 million, including placement agent fees
of approximately $0.3 million. We received net proceeds of approximately $3.5 million, after deducting the underwriting discount
and other offering expenses.

 June
2024 Financings

 On
June 12, 2024, we entered into a securities purchase agreement with certain investors, pursuant to which we sold 11,995 shares
of common stock and pre-funded warrants to purchase up to 25,682 shares of common stock. The offering price per share of common
stock was $106.50, and the offering price per share of pre-funded warrant was $106.40.

 The offering closed on June 13, 2024. We incurred offering expenses of
approximately $0.6 million, including placement agent fees of approximately $0.3 million. We received net proceeds of approximately $3.4
million, after deducting the underwriting discount and other offering expenses.

 On
June 27, 2024, we entered into a securities purchase agreement with certain institutional and retail investors, pursuant to which
we sold 28,339 shares of common stock and pre-funded warrants to purchase up to 42,282 shares of common stock. The offering price
per share of common stock was $57.00, and the offering price per share of pre-funded warrant was $56.99.

 The offering closed on June 28, 2024. We incurred offering expenses of
approximately $0.6 million, including placement agent fees of approximately $0.3 million. We received net proceeds of approximately $3.4
million, after deducting the underwriting discount and other offering expenses.

 March
2024 Financing

 On
March 28, 2024, we entered into an agreement to sell 3,365 shares of common stock, pre-funded warrants to purchase up to 1,219
shares of common stock, and accompanying Series E warrants to purchase up to 4,584 shares of common stock with an exercise price
of $1,056.00 per share and expiring five and a half years from date of issuance in a public offering, which closed on April 1,
2024. The offering price per share of common stock was $960.00 and the offering price per share of pre-funded warrants was $959.68.

 We
incurred offering expenses of approximately $0.5 million, including placement agent fees of approximately $0.3 million. We received
net proceeds of approximately $3.9 million, after deducting the underwriting discount and other offering expenses.

with the closing of the financing on April 1, 2024, we entered into warrant amendments (collectively, the "Warrant Amendments")
with certain holders of our common warrants (referred to herein as the "Existing Warrants"). We agreed to amend the
exercise price of each Existing Warrant to $1,056.00 upon approval by our stockholders of a proposal to allow the Existing Warrants
to become exercisable in accordance with Nasdaq Listing Rule 5635 or, if stockholder approval is not obtained by October 1, 2024,
we agreed to automatically amend the exercise price of the Existing Warrants to the Minimum Price (as defined in Nasdaq Listing
Rule 5635(d)) of our common stock on October 1, 2024 if and only if the Minimum Price is below the then current exercise price.
Upon stockholder approval on May 22, 2024, the termination date for the warrants issued August 2023 (the "August Warrants")
to purchase up to an aggregate of 2,172 shares was amended to April 1, 2029; the termination date for Series A Warrants to purchase
up to an aggregate of approximately 2,782 shares is April 1, 2029; the termination date for Series B Warrants to purchase up to
an aggregate of approximately 2,782 shares is April 1, 2025; the termination date for Series C Warrants to purchase up to an aggregate
of approximately 10,884 shares is the earlier of (i) April 1, 2026 and (ii) 10 trading days following notice by we to the Series
C Warrant holder of our public announcement of the FDA's acknowledgement and acceptance of our NDA relating to TNX-102 SL
in patients with Fibromyalgia; the termination date for Series D Warrants to purchase up to an aggregate of approximately 10,884
shares is April 1, 2029. The other terms of the Existing Warrants will remain unchanged. On May 22, 2024, at the annual meeting
of stockholders, our stockholders approved the proposal to amend the exercise prices of the Existing Warrants to $1,056.00 per
share and extend the expiration dates.

 December

 On
December 20, 2023, we entered into a securities purchase agreement (the "Purchase Agreement") with certain institutional
investors, pursuant to which we sold and issued (i) 7,920 shares of our common stock, (ii) pre-funded warrants (the "Pre-Funded
Warrants") to purchase up to 8,973 shares of common stock and (iii) Series C warrants to purchase up to 25,338 shares of
common stock (the "Series C Warrants"), and (iv) Series D warrants to purchase up to 25,338 shares of common stock
(the "Series D Warrants" and, together with the Series C Warrants, the "Common Warrants"). The securities
sold in the offering were sold in fixed combinations as units. The offering price per share of common stock and accompanying Common
Warrants was $1,776.00, and the offering price per Pre-Funded Warrant and accompanying Common Warrants was $1,775.68. The offering
closed on December 22, 2023, generating gross proceeds of approximately $30.0 million, before deducting offering expenses of $2.3
million payable by us. At the closing of the offering, 2,034 Pre-Funded Warrants were immediately exercised into shares of common
stock for nominal proceeds.

 The Pre-Funded Warrants have an exercise price of $0.32 per share,
were immediately exercisable subject to certain ownership limitations, and can be exercised at any time until exercised in full. The Series
C Warrants have an exercise price of $1,776.00 per share, and were exercisable on the later of approval by our stockholders of (i) a proposal
to approve the filing of an amendment to our Articles of Incorporation, increasing the number of authorized shares of common stock from
160,000,000 to 1,000,000,000 and (ii) a proposal to allow the Warrants to become exercisable in accordance with Nasdaq Listing Rule 5635
(the later of such events, the "Approval Date") and initially expired on the later of (a) 10 trading days following the Approval
Date and (b) the earlier of (x) the two year anniversary of the Approval Date and (y) 10 trading days following the public announcement
of the U.S. Food and Drug Administration's ("FDA") acknowledgement and acceptance of the New Drug Application ("NDA")
relating to the Company's TNX-102 SL product candidate in patients with fibromyalgia. The Series D Warrants have an exercise price
of $2,720.00 per share and were exercisable beginning on the Approval Date through the five-year anniversary of the Approval Date.

 Upon the closing of the offering, we determined that certain of the Common
Warrants did not meet the criteria for equity classification due to the lack of sufficient authorized and unissued shares to settle the
instruments. The Company has adopted a sequencing approach under ASC 815-40, Derivatives and Hedging - Contracts in Entity's Own
Equity to determine the classification of its contracts at issuance and at each subsequent reporting date, whereby shares are allocated
based on the earliest issuance date of potentially dilutive instruments, with the earliest issuance date receiving the first allocation
of shares. In the event of identical issuance dates, shares are then allocated beginning with instruments with the latest maturity date
first. Pursuant to this sequencing approach, we determined that the authorized shares were sufficient to settle all remaining Pre-Funded
Warrants and 15,917 Series D Warrants and were therefore classified in equity. The remaining 9,422 Series D Warrants and the Series C
Warrants associated with the deficit shares were initially classified as liabilities at fair value and presented within non-current liabilities
on the consolidated balance sheet as of December 31, 2023.

 The
$30.0 million in gross proceeds received by us were first allocated to the Series C Warrants and the liability-classified Series
D Warrants at their respective fair values, and the residual proceeds were allocated between the shares of common stock, the Pre-Funded
Warrants, and the equity-classified Series D Warrants on a relative fair value basis. The issuance costs were allocated between
the equity and liability-classified instruments on a relative fair value basis, resulting in issuance costs of $1.4 million recognized
as a discount to the equity-classified instruments, and $0.9 million allocated to the liability-classified instruments and immediately
expensed within Selling, general and administrative expense on the consolidated statements of operations.

 On
January 25, 2024, the date our stockholders approved the proposal to file an amendment to the Company's Articles of Incorporation
to increase the number of authorized shares of common stock from 160,000,000 to 1,000,000,000, the liability-classified Series
D Warrants and the Series C Warrants were adjusted to fair value and reclassified to equity.

 September

 On September 28, 2023, we
sold 1,266 shares of common stock; pre-funded warrants to purchase up to 1,549 shares of common stock, and accompanying Series A warrants
to purchase up to 2,813 shares of common stock with an exercise price of $1,600.00 per share and expiring five years from date of issuance,
and Series B warrants to purchase up to 2,813 shares of common stock with an exercise price of $1,600.00 per share and expiring one year
from date of issuance in a public offering, which closed on October 3, 2023. The offering price per share of common stock and accompanying
warrants was $1,600.00, and the offering price per share of pre-funded warrant and accompanying warrants was $1,599.68.

 We
incurred offering expenses of approximately $0.5 million, including placement agent fees of approximately $0.3 million. We received
net proceeds of approximately $4.0 million, after deducting the underwriting discount and other offering expenses.

 July

 On
July 27, 2023, we sold 791 shares of common stock; pre-funded warrants to purchase up to 1,399 shares of common stock and accompanying
common warrants to purchase up to 2,188 shares of common stock with an exercise price of $3,200.00 per share in a public offering
that closed on August 1, 2023. The offering price per share of common stock and accompanying common warrant was $3,200.00, and
the offering price per share of pre-funded warrant and accompanying common warrant was $3,199.68.

 We
incurred offering expenses of approximately $0.7 million, including placement agent fees of approximately $0.5 million. We received
net proceeds of approximately $6.3 million, after deducting the underwriting discount and other offering expenses.

 2020
At-the-Market Offerings

 On
April 8, 2020, we entered into a sales agreement with AGP pursuant to which we may issue and sell shares of our common stock having an
aggregate offering price of up to $320.0 million in at-the-market offerings ("ATM") sales at prevailing market prices at
the time of the sale, and, as a result, prices will vary. AGP receives a 3% commission on each ATM sale under the Sales Agreement.

the year ended December 31, 2023, we sold approximately 322 shares of common stock under the Sales Agreement, for net proceeds of approximately
$3.0 million.

 Share
Repurchase Program

 In
September 2024, the Board of Directors approved a 2024 share repurchase program pursuant
to which we may repurchase up to $10.0 million in value of our outstanding common stock from time to time on the open
market and in privately negotiated transactions subject to market conditions, share price and other factors. No
repurchases occurred during the year ended December 31, 2024. Subsequent to December 31, 2024,
we repurchased 250,000 of shares of our common stock outstanding under the 2024 share repurchase at prices ranging from $9.98
to $14.33 per share for a gross aggregate cost of approximately $3.0 million.

the first quarter of 2023, we repurchased 786 of our shares of common stock outstanding under the 2022 share repurchase program
for $12.5 million at prices ranging from $8,800.00 to $27,552.00 per share for a gross aggregate cost of approximately $12.5 million.
In addition, we incurred expenses of $0.3 million.

 In
January 2023, the Board of Directors approved a 2023 share repurchase program pursuant
to which we may repurchase up to an additional $12.5 million in value of our outstanding common stock from time to time
on the open market and in privately negotiated transactions subject to market conditions, share price and other factors. During
the first quarter of 2023, we repurchased 50 of our shares of common stock outstanding
under the new 2023 share repurchase program at $22,784 per share for a gross aggregate cost of $1.1 million.

 Debt
Financing

 On
December 8, 2023, we executed a Loan and Guaranty Agreement (the "Loan Agreement") to issue a 36-month term loan (the
"Term Loan") in the principal amount of $11.0 million with a maturity date of December 8, 2026 (the "Maturity
Date"). The Term Loan was funded with an original issue discount of 9% of the principal amount of the Term Loan, or $1.0
million, which is being amortized over the term of the debt as an adjustment to the effective interest rate on the outstanding
borrowings.

 Borrowings
under the Term Loan bear interest at a fluctuating rate equal to the greater of (i) the prime rate as defined in the Loan Agreement
plus 3.5% and (ii) 12%. Interest is payable monthly in arrears commencing in December 2023. In connection with the Term Loan,
we deposited into a reserve account $1.8 million to be used exclusively to fund interest payments related to the Term Loan. The
deposit is reflected as prepaid and other current assets on the consolidated balance sheet.

 Commencing
on March 8, 2024 and continuing monthly through the Maturity Date, the outstanding principal will be due and payable in monthly
installments of $0.2 million, with the final remaining balance of unpaid principal and interest due and payable on the Maturity
Date. In addition, we must pay a monthly collateral monitoring charge equal to 0.23% of the outstanding principal amount of the
term loan as of the date of payment. We incurred $1.1 million in issuance costs, which is being amortized over the term of
the debt as an adjustment to the effective interest rate on the outstanding borrowings.

 The
Loan Agreement provides for voluntary prepayments of the Term Loan, in whole or in part, subject to a prepayment premium. The
Loan Agreement contains customary affirmative and negative covenants by us, which among other things, will require us to provide
certain financial reports to the lenders, to maintain a deposit account to fund interest payments, and limit the ability of us
to incur or guarantee additional indebtedness, pay dividends or make other equity distributions, sell assets, engage in certain
transactions, and effect a consolidation or merger. Our obligations under the Loan Agreement may be accelerated upon customary
events of default, including non-payment of principal, interest, fees and other amounts, covenant default, insolvency, material
judgements, inaccuracy of representations and warranties, invalidity of guarantees. The Term Loan is secured by first priority
security interests in our R&D Center in Frederick, Maryland, the Advanced Development Center in North Dartmouth, Massachusetts,
and substantially all of the relevant deposit accounts.

 As
of December 31, 2024, the carrying amount of the Term Loan approximated its fair value as the contractual interest rate for the
Term Loan was representative of the then market interest rate.

the first quarter of 2025, we paid $9.6 million as a result of a pay-off of the above-mentioned loan. The pay-off amount paid
by us in connection with the termination of the Loan Agreement was pursuant to a pay-off letter and includes a prepayment fee
of $1.0 million in accordance with the terms and provisions of the Loan Agreement.

 Stock

 On
May 1, 2020, our stockholders approved the Tonix Pharmaceuticals Holding Corp. Amended and Restated 2020 Stock Incentive Plan
("Amended and Restated 2020 Plan").

 Under
the terms of the Amended and Restated 2020 Plan, we may issue (1) stock options (incentive and nonstatutory), (2) restricted stock,
(3) stock appreciation rights ("SARs"), (4) restricted stock units, (5) other stock-based awards, and (6) cash-based
awards. The Amended and Restated 2020 Plan initially provided for the issuance of up to 50,000 shares of common stock, which amount will
be increased to the extent that awards granted under the Plans are forfeited, expire or are settled for cash (except as otherwise
provided in the Amended and Restated 2020 Plan). In addition, the Amended and Restated 2020 Plan contains an "evergreen
provision" providing for an annual increase in the number of shares of our common stock available for issuance under the
Amended and Restated 2020 Plan on January 1 of each year for a period of ten years, commencing on January 1, 2021 and ending on
(and including) January 1, 2030, in an amount equal to the difference between (x) twenty percent (20%) of the total number of
shares of common stock outstanding on December 31 st of the preceding calendar year, and (y) the total number of shares
of common stock reserved under the Amended and Restated 2020 Plan on December 31 st of such preceding calendar year
(including shares subject to outstanding awards, issued pursuant to awards or available for future awards). The Board of Directors
determines the exercise price, vesting and expiration period of the grants under the Amended and Restated 2020 Plan. However,
the exercise price of an incentive stock option may not be less than 110% of fair value of the common stock at the date of the
grant for a 10% or more shareholder and 100% of fair value for a grantee who is not a 10% shareholder. The fair value of the common
stock is determined based on quoted market price or in absence of such quoted market price, by the Board of Directors in good
faith. Additionally, the expiration period of grants under the Amended and Restated 2020 Plan may not be more than ten years.
As of December 31, 2024, no options were available for future grants under the Amended and Restated 2020 Plan.

 We
measure the fair value of stock options on the date of grant, based on the Black Scholes option pricing model using certain assumptions
discussed below, and the closing market price of the Company's common stock on the date of the grant. The fair value of
the award is measured on the grant date. One-third of most stock options granted pursuant to the Plans vest 12 months from the
date of grant and 1/36 th each month thereafter for 24 months and expire ten years from the date of grant. In addition,
the Company issues options to directors which vest over a one-year period. The Company also issues premium options to executive
officers which have an exercise price greater than the grant date fair value and has issued performance-based options which vest
when target parameters are met or probable of being met, subject in each case to a one year minimum service period prior to vesting.
Stock-based compensation expense related to awards is amortized over the applicable service period using the straight-line method.

 The
risk-free interest rate is based on the yield of Daily U.S. Treasury Yield Curve Rates with terms equal to the expected term of
the options as of the grant date. The expected term of options is determined using the simplified method, as provided in
an SEC Staff Accounting Bulletin, and the expected stock price volatility is based on the Company' historical stock
price volatility.

 The
weighted average fair value of options granted during the year ended December 31, 2024, was $868.00 per share. The weighted average
fair value of options granted during the year ended December 31, 2023, was $12,768.00 per share.

 Stock-based
compensation expense relating to options granted of $4.8 million, of which $3.4 million and $1.4 million, related to General and
Administration and Research and Development, respectively was recognized for the year ended December 31, 2024. Stock-based compensation
expense relating to options granted of $9.3 million, of which $6.4 million and $2.9 million, related to General and Administration
and Research and Development, respectively was recognized for the year ended December 31, 2023.

 As
of December 31, 2024, the Company had approximately $3.4 million of total unrecognized compensation cost related to non-vested
awards granted under the Plans, which the Company expects to recognize over a weighted average period of 1.57 years.

 Employee
Stock Purchase Plan

 On
May 6, 2022, our stockholders approved the Tonix Pharmaceuticals Holdings Corp. 2022 Employee Stock Purchase Plan. (the "2022
ESPP"), which was replaced by the Tonix Pharmaceuticals Holdings Corp. 2023 Employee Stock Purchase Plan (the "2023
ESPP", and together with the 2022 ESPP, the "ESPP Plans"), which was approved by our stockholders on May 5,
2023.

 The
2023 ESPP allows eligible employees to purchase up to an aggregate of 250 shares of our common stock. Under the 2023
ESPP, on the first day of each offering period, each eligible employee for that offering period has the option to enroll for that
offering period, which allows the eligible employees to purchase shares of our common stock at the end of the offering period.
Each offering period under the 2023 ESPP is for six months, which can be modified from time-to-time. Subject to limitations, each
participant will be permitted to purchase a number of shares determined by dividing the employee's accumulated payroll
deductions for the offering period by the applicable purchase price, which is equal to 85 percent of the fair market
value of our common stock at the beginning or end of each offering period, whichever is less. A participant must designate in
his or her enrollment package the percentage (if any) of compensation to be deducted during that offering period for the purchase
of stock under the 2023 ESPP, subject to the statutory limit under the Code. As of December 31, 2024, 159 shares were available
for future sales under the 2023 ESPP.

 The
ESPP Plans are considered compensatory plans with the related compensation cost expensed over the six-month offering period. For
the year ended December 31, 2024 and 2023, $27,000 and $34,000, respectively, was expensed. In January 2023, 5 shares that were
purchased as of December 31, 2022, under the 2022 ESPP, were issued. Accordingly, during the first quarter of 2023, approximately
$29,000 of employee payroll deductions accumulated at December 31, 2022, related to acquiring such shares, was transferred from
accrued expenses to additional paid in capital. The remaining $14,000 was returned to the employees. As of December 31, 2023,
approximately $44,000 of employee payroll deductions had accumulated and had been recorded in accrued expenses. In January
2024, 21 shares that were purchased as of December 31, 2023, under the 2022 ESPP, were issued. Accordingly, during the first quarter
of 2024, approximately $24,000 of employee payroll deductions accumulated at December 31, 2023, related to acquiring such shares,
was transferred from accrued expenses to additional paid in capital. The remaining $20,000 was returned to the employees. As of
June 30, 2024, approximately $33,000 of employee payroll deductions had accumulated and had been recorded in accrued expenses. In
July 2024, 70 shares that were purchased as of June 30, 2024, under the 2022 ESPP, were issued. Accordingly, during the third
quarter of 2024, approximately $4,000 of employee payroll deductions accumulated at June 30, 2024, related to acquiring such shares,
was transferred from accrued expenses to additional paid in capital. The remaining $29,000 was returned to the employees.

 Commitments

 Research
and Development Contracts

 We
have entered into contracts with various contract research organizations with outstanding commitments aggregating approximately
$12.7 million at December 31, 2024 for future work to be performed.

leases

 As
of December 31, 2024, future minimum lease payments are as follows (in thousands):

 Year
 Ending December 31,

 2025

 $

 2026

 2027

 2028

 2029

 Included
 interest

 (56

)

 $

 Critical
Accounting Policies and Estimates

 Our
discussion and analysis of our financial condition and results of operations are based on our consolidated financial statements,
which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of
these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities
and expenses. We evaluate our estimates and judgments on an ongoing basis. We base our estimates on historical experience and
on assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments
about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ
from these estimates.

 We
believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation
of our consolidated financial statements.

 Business
Combinations. We apply the acquisition method of accounting for business combinations. Under the acquisition method, the acquiring
entity recognizes all of the identifiable assets acquired and liabilities assumed at their acquisition date fair values. We use
our best estimates and assumptions to estimate the fair values of these tangible and intangible assets. Any excess of the purchase
price over amounts allocated to the assets acquired is recorded as goodwill. The acquired intangible assets are amortized using
the straight-line method over the estimated useful lives of the respective assets. Goodwill is reviewed for impairment on an annual
basis, or more frequently if events or changes in circumstances indicate that the carrying amount of goodwill may be impaired.

 Asset
impairment charges. We test certain assets for impairment, including goodwill, indefinite-lived intangibles, long-lived assets
and amortizing intangibles. Goodwill is reviewed for impairment by comparing the carrying value of a reporting unit to its fair
value on an annual basis as of June 30, or more frequently if events or changes in circumstances indicate that the carrying amount
of goodwill may be impaired. We evaluate long-lived assets for impairment, including property and equipment and finite-lived intangibles
assets whenever events or changes in circumstances indicate that their net book value may not be recoverable. When such factors
and circumstances exist, we compare the projected undiscounted future cash flows associated with the related asset or group of
assets over their estimated useful lives against their respective carrying amount. Impairment, if any, is based on the excess
of the carrying amount over the fair value, based on market value when available, or discounted expected cash flows, of those
assets and is recorded in the period in which the determination is made.

 We completed the required annual impairment test for goodwill as of
June 30, 2024, primarily using an income approach or discounted cash flow analysis. Additionally, due to a sustained decline in revenues
and continued delays in building out the sales team for our commercialized products, we also tested the commercialized products asset
group for recoverability as of June 30, 2024, and determined that the carrying value was not recoverable and therefore estimated the fair
value of the asset group using a discounted cash flow analysis. The significant assumptions used in the discounted cash flow model included
revenue growth, long-term growth rate, and discounts rate. The impairment assessments resulted in full non-cash impairment of $965,000
of goodwill and $9.2 million, consisting of $6.2 million and $3.0 million for the Zembrace and Tosymra developed technology, intangible
assets, which are reflected in asset impairment charges in the consolidated statements of operations for the year ended December 31, 2024.

 During the second quarter
of 2024, we identified certain triggering events related to the ADC and the decommissioning of the ADC. The Company determined that the
carrying value of the ADC was not recoverable and that the carrying value exceeded its fair value. We engaged independent appraisers to
value the building and land, using sales comparison and income capitalization approaches, and the related equipment using a indirect cost
approach and market approach. The assessments resulted in a non-cash impairment charge of $48.8 million, which is reflected in asset impairment
charges in the consolidated statements of operations for the year ended December 31, 2024.

 Revenue
Recognition. Our gross product revenues are subject to a variety of deductions, which generally are estimated and recorded in
the same period that the revenues are recognized. Such variable consideration represents chargebacks, rebates, prompt pay and
other sales discounts, and product returns. These deductions represent estimates of the related obligations and, as such, knowledge
and judgment are required when estimating the impact of these revenue deductions on gross sales for a reporting period. We began
recognizing revenue following the completion of the USL Acquisition, beginning July 1, 2023, and required variable consideration
estimates are currently primarily based on the acquired products historical results. Adjustments to these estimates to reflect
actual results or updated expectations will be assessed each period. If any of our ratios, factors, assessments, experiences,
or judgments are not indicative or accurate estimates of our future experience, our results could be materially affected. The
potential of our estimates to vary differs by program, product, type of customer and geographic location. In addition, estimates
associated with U.S. Medicare and Medicaid governmental rebate programs are at risk for material adjustment because of the extensive
time delay.

 Research
and Development. We outsource certain of our research and development efforts and expense the related costs as incurred, including
the cost of manufacturing product for testing, licensing fees and costs associated with planning and conducting clinical trials.
The value ascribed to patents and other intellectual property acquired was expensed as research and development costs, as it related
to particular research and development projects and had no alternative future uses.

 We
estimate our accrued expenses. Our clinical trial accrual process is designed to account for expenses resulting from our obligations
under contracts with vendors, consultants and clinical research organizations and clinical site agreements in connection with
conducting clinical trials. The financial terms of these contracts are subject to negotiations, which vary from contract to contract
and may result in payment flows that do not match the periods over which materials or services are provided to us under such contracts.
We account for trial expenses according to the progress of the trial as measured by participant progression and the timing of
various aspects of the trial. We determine accrual estimates that take into account discussions with applicable personnel and
outside service providers as to the progress or state of completion of trials, or the services completed. During the course of
a clinical trial, we adjust our clinical expense recognition if actual results differ from our estimates. We make estimates of
our accrued expenses as of each balance sheet date based on the facts and circumstances known to us at that time. Our clinical
trial accruals and prepaid assets are dependent upon the timely and accurate reporting of contract research organizations and
other third-party vendors.

 Stock-Based
Compensation. All stock-based payments to employees and to nonemployee directors for their services as directors consisted of
grants of restricted stock and stock options, which are measured at fair value on the grant date and recognized in the consolidated
statements of operations as compensation expense over the relevant vesting period. In addition, for awards that vest immediately
and are nonforfeitable, the measurement date is the date the award is issued.

 Deferred
financing costs. Deferred financing costs represent the cost of obtaining financing arrangements and are amortized over the term
of the related debt agreement using the effective interest method. Deferred financing costs related to term debt arrangements
are reflected as a direct reduction of the related debt liability on the consolidated balance sheet. Amortization of deferred
financing costs is included in interest expense on the consolidated statements of operations.

 Original
issue discount. Certain term debt issued by the Company provides the debt holder with an original issue discount. Original issue
discounts are reflected as a direct reduction of the related debt liability on the consolidated balance sheets and are amortized
over the term of the related debt agreement using the effective interest method. Amortization of original issue discounts are
included in interest expense on the consolidated statements of operations.

 Derivative
Instruments and Warrant Liabilities. The Company evaluates all of its financial instruments, including issued warrants to purchase
common stock under ASC 815 – Derivatives and Hedging, to determine if such instruments are derivatives or contain features
that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative
instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value
reported in the consolidated statements of operations. The Company uses the Black-Scholes option pricing model to value the derivative
instruments at inception and subsequent valuation dates, which is adjusted for instrument-specific terms as applicable.

 From
time to time, certain equity-linked instruments may be classified as derivative liabilities due to the Company having insufficient
authorized shares to fully settle the equity-linked financial instruments in shares. In such a case, the Company has adopted a
sequencing approach under ASC 815-40, Derivatives and Hedging - Contracts in Entity's Own Equity to determine the classification
of its contracts at issuance and at each subsequent reporting date. If reclassification of contracts between equity and assets
or liabilities is necessary, the Company first allocates remaining authorized shares to equity on the basis of the earliest issuance
date of potentially dilutive instruments, with the earliest issuance date receiving the first allocation of shares. In the event
of identical issuance dates, shares are then allocated to equity beginning with instruments with the latest maturity date first.

 The
classification of derivative instruments is reassessed at each reporting date. If the classification changes as a result of events
during a reporting period, the instrument is reclassified as of the date of the event that caused the reclassification. There
is no limit on the number of times a contract may be reclassified.

 Other
than contractual obligations incurred in the normal course of business, we do not have any off-balance sheet financing arrangements
or liabilities, guarantee contracts, retain or contingent interests in transferred assets or any obligation arising out of a material
variable interest in an unconsolidated entity.

 Recently Adopted Accounting Pronouncements

 In November 2023, the Financial Accounting Standards Board ("FASB")
issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures,
which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment
expenses. Effective January 1, 2024, the Company adopted the new standard on a retrospective basis for annual periods, and interim periods
beginning for the first quarter of 2025. The Company does not believe the impact of the new guidance and related codification improvements
had a material impact to its financial position, results of operations and cash flows.

 Recently Issued Accounting Pronouncements

 In
December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, which requires disaggregated information
about our effective tax rate reconciliation as well as information on income taxes paid. The guidance will first be effective
in our annual disclosures for the year ending December 31, 2025, and should be applied on a prospective basis with the option
to apply retrospectively. Early adoption is permitted. The Company is in the process of assessing the impact of ASU 2023-09 on
our disclosures.

 In
March 2024, the SEC adopted new rules relating to the disclosure of a range of climate-change-related physical and transition
risks, data, and opportunities. The adopted rule contains several new disclosure obligations, including, (i) disclosure on how
the board of directors and management oversee climate-related risks and certain climate-related governance items, (ii) disclosure
of information related to a registrant's climate-related targets, goals, and/or transition plans, and (iii) disclosure on
whether and how climate-related events and transition activities impact line items above a threshold amount on a registrant's
consolidate financial statements, including the impact of the financial estimates and the assumptions used. This new rule will
first be effective in the Company's disclosures for the year ending December 31, 2027. The Company is in the process of
assessing the impact on our consolidated financial statements and disclosures.

 In
November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation
Disclosures, to improve transparency in financial reporting by requiring entities to present more detailed information about
the nature of expenses included within the Income Statement. The guidance will first be effective for annual reporting periods
beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted.
The Company is in the process of assessing the impact of ASU 2024-03 on our disclosures.

 ITEM
7A – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 Not
required under Regulation S-K for "smaller reporting companies.

 ITEM 8 – FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

 Report of Independent Registered Public Accounting Firm

 Consolidated balance sheets as of December 31, 2024 and 2023

 Consolidated statements of operations for the years ended December 31, 2024 and 2023

 Consolidated statements of comprehensive loss for the years ended December 31, 2024 and 2023

 Consolidated statements of stockholders' equity for the years ended December 31, 2024 and 2023

 F-6 – F-7

 Consolidated statements of cash flows for the years ended December 31, 2024 and 2023

 Notes to consolidated financial statements

 F-9 – F-35

 F- 1

 REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM

 To
the Board of Directors and Stockholders of

 Tonix
Pharmaceuticals Holding Corp.

 Opinion
on the Financial Statements

 We
have audited the accompanying consolidated balance sheets of Tonix Pharmaceuticals Holding Corp. and Subsidiaries (the "Company")
as of December 31, 2024 and 2023, and the related consolidated statements of operations, comprehensive loss, stockholders' equity,
and cash flows for each of the years 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 consolidated financial position of the Company
as of December 31, 2024 and 2023, and the consolidated results of their operations and their cash flows for each of the years then ended,
in conformity with accounting principles generally accepted in the United States of America.

 Going
Concern

 The
accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note
1 to the financial statements, the Company has continuing losses and negative cash flows from operating activities that raise substantial
doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note
1. 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 Company's management. Our responsibility is to express an opinion on the Company's
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 audits 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 audits,
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 Company's internal control over financial reporting. Accordingly, we express no such opinion.

 Our
audits 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 audits 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 audits
provide a reasonable basis for our opinion.

 Critical
Audit Matters

 The
critical audit matters communicated below 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. The communication of the critical audit matters
does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit
matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

 Accrual
and prepaid balance for clinical trial expenses

 As
described in Note 2 to the consolidated financial statements, at each balance sheet date the Company estimates its expenses resulting
from its obligations under contracts with vendors, clinical research organizations and under clinical site agreements in connection with
conducting clinical trials. The Company accounts for trial expenses according to the timing of various aspects of the trial. The Company's
accrual for clinical trial expenses of approximately $1.8 million is included in accrued expenses and other current liabilities in the
December 31, 2024 consolidated balance sheet. The Company also recorded prepaid clinical trial expenses of approximately $0.9 million
within prepaid expenses and other in the December 31, 2024 consolidated balance sheet. The amounts recorded for clinical trial expenses
represent the Company's estimates of the unpaid and prepaid clinical trial expenses based on facts and circumstances known to the
Company at that time and are dependent upon the timely and accurate reporting of contract research organizations and other third-party
vendors. The estimation of clinical trial expenses was also identified as a critical accounting estimate by management.

 We
identified the accrual for clinical trial expenses as a critical audit matter due to the significant judgment and estimation required
by management in determining progress or state of completion of clinical trials or services completed. This in turn led to a high degree
of auditor subjectivity, and significant audit effort was required in performing our procedures and evaluating audit evidence relating
to estimates made by management.

 Addressing
the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated
financial statements. We obtained an understanding of Management's process and evaluated the design of controls over developing
its estimate of accrued and prepaid clinical trial expenses, including the process of estimating the expenses incurred to date based
on the status of the clinical trials. Our procedures also included, among others, reading agreements and contract amendments with vendors,
consultants and clinical research organizations and clinical site agreements in connection with conducting clinical trials, and evaluating
the significant assumptions described above and the methods used in developing the clinical trial estimates and re-calculating the amounts
that were unpaid and prepaid at the balance sheet date. We confirmed a sample of contractual commitments for completeness of the contract
listing, as well as confirmation of work completed, paid and unpaid directly with the third parties involved in performing the clinical
trial services on behalf of the Company. We also made direct inquiries of Company financial personnel regarding the contract amount including
change orders, status and progress to completion of clinical trials, amounts paid to date under each contract, and description of future
commitments. We also assessed the historical accuracy of management's estimates by comparing work completed in the current period
to work completed in prior-period to identify unusual fluctuations, if any.

 Impairment
of long-lived assets

 As
described in Note 2 to the consolidated financial statements, the Company evaluates long-lived assets for impairment, including property
and equipment, finite-lived intangible assets and operating lease right-of-use assets whenever events or circumstances indicate that
their net book value may not be recoverable. The Company compared the projected undiscounted future cash flows associated with the related
asset or group of assets over their estimated useful lives against their respective carrying amount. Impairment, if any, is based on
the excess of the carrying amount over the fair value of those assets, with the difference recorded as an impairment charge. For the
year-ended December 31, 2024, the Company recorded impairment charges related to long-lived assets of $48.8 million associated with the
decommissioning of the Advanced Development Center, and $9.2 million associated with Zembrace and Tosymra developed technology intangible
assets due to a decline in revenues.

 We
identified the impairment of long-lived assets as a critical audit matter due to the significant judgment and estimation required by
management in estimating the undiscounted cash flows and related fair value estimates of each impaired asset group. This in turn led
to a high degree of auditor subjectivity, and significant audit effort was required in performing our procedures and evaluating audit
evidence relating to estimates made by management.

 Addressing
the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated
financial statements. We obtained an understanding of Management's process and evaluated the design of controls over the identification
of events or changes in circumstances that indicate the carrying amount of an asset or asset group may not be recoverable, as well as
management's methodology in determining the fair value estimate when triggering events are identified.

 Our
procedures related to the Advanced Development Center also included, among others, (i) evaluation of whether management appropriately
identified events or changes in circumstances that indicated that the carrying amount of certain asset groups may not be recoverable;
(ii) evaluation of management's determination of asset groups at the lowest level of identifiable cash flows; (iii) vouching a
selection of invoices to validate acquisition costs, along with physical observation of the underlying land, building, and selected machinery
and equipment near the impairment date; and (iv) testing managements fair value estimates. Testing over the fair value estimates involved
the assistance of auditor specialists, which included determining the reasonableness of the valuation methodology applied and assumptions
used by Management.

 Our
procedures related to developed technology intangible assets also included, among others, (i) evaluation of whether management appropriately
identified events or changes in circumstances that indicated that the carrying amount of certain asset groups may not be recoverable;
and (ii) testing managements recoverability test and fair value estimates. Testing over the fair value estimates involved the assistance
of auditor specialists, which included determining the reasonableness of the valuation methodology applied and assumptions used by Management.
As part of our evaluation, we also considered whether such assumptions were consistent with evidence obtained in other areas of the audit.

 We
have served as the Company's auditor since 2010.

 EISNERAMPER
LLP

 Iselin,
New Jersey

 March
18, 2025

 F- 2

 CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Par Value and Share Amounts)

 2024

 2023

 ASSETS

 Current assets:

 Cash and cash equivalents

 $
 98,776

 $
 24,948

 Accounts receivable, net

 3,683

 —

 Inventory, net

 8,408

 13,639

 Prepaid expenses and other current assets

 8,135

 9,181

 Total current assets

 119,002

 47,768

 Property and equipment, net

 42,252

 94,028

 Intangible assets, net

 9,743

 Goodwill

 —

 Operating lease right-to-use assets

 Other non-current assets

 1,129

 Total assets

 $
 162,890

 $
 154,457

 LIABILITIES AND STOCKHOLDERS' EQUITY

 Current liabilities:

 Accounts payable

 $
 4,546

 $
 3,782

 Accrued expenses and other current liabilities

 10,667

 12,482

 Term loan payable, short term

 2,820

 2,350

 Lease liability, short term

 Total current liabilities

 18,307

 18,884

 Term loan payable, long term

 4,667

 6,561

 Series C warrant liabilities

 —

 14,595

 Series D warrant liabilities

 —

 8,260

 Lease liability, long term

 Total liabilities

 23,332

 48,932

 Commitments (See Note 17)

 —

 Stockholders' equity:

 Preferred stock, $ 0.001 par value; 5,000,000 shares authorized, 0 shares designated as of both December 31, 2024 and 2023; 0 shares issued and outstanding - as of both December 31, 2024 and 2023

 —

 —

 Common stock, $ 0.001 par value; 1,000,000,000 shares authorized; 4,385,929 and 20,926 shares issued and outstanding as of December 31, 2024 and 2023, respectively and 21 shares to be issued as of December 31, 2023

 —

 Additional paid in capital

 870,503

 706,415

 Accumulated deficit

 ( 730,694
)

 ( 600,658
)

 Accumulated other comprehensive loss

 ( 255
)

 ( 232
)

 Total stockholders' equity

 139,558

 105,525

 Total liabilities and stockholders' equity

 $
 162,890

 $
 154,457

 See the accompanying notes to the consolidated financial statements

 F- 3

 CONSOLIDATED STATEMENTS OF OPERATIONS

 (In Thousands, Except Share and Per
Share Amounts)

 2024

 2023

 REVENUES:

 Product revenue, net

 $
 10,094

 $
 7,768

 COSTS AND EXPENSES:

 Cost of sales

 7,765

 4,741

 Research and development

 39,972

 86,655

 Selling, general and administrative

 40,101

 34,752

 Asset impairment charges

 58,957

 —

 Total Operating Expenses

 146,795

 126,148

 Operating loss

 ( 136,701
)

 ( 118,380
)

 Grant income

 2,594

 —

 Gain on change in fair value of warrant liabilities

 6,150

 —

 Other (expense) income, net

 ( 2,079
)

 1,722

 Net loss available to common stockholders

 $
)

 $
)

 Net loss to common stockholders per common share, basic and diluted

 $
 ( 176.60
)

 $
 ( 14,720.25
)

 Weighted average common shares outstanding, basic and diluted

 736,339

 7,925

 See the accompanying notes to the consolidated

 F- 4

 CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS

 (In Thousands)

 2024

 2023

 $
)

 $
)

 Other comprehensive loss:

 Foreign currency translation loss

 ( 23
)

 ( 65
)

 Comprehensive loss

 $
 ( 130,059
)

 $
 ( 116,723
)

 See the accompanying notes to the consolidated

 F- 5

 CONSOLIDATED STATEMENTS OF STOCKHOLDERS'
EQUITY

 (In Thousands, Except Share and Per Share
Amounts)

 Accumulated

 Additional

 Other

 Common stock

 Paid in

 Comprehensive

 Accumulated

 Shares

 Amount

 Capital

 Gain (loss)

 Deficit

 Total

 Balance, December 31, 2023

 20,926

 $
 —

 $
 706,415

 $
 ( 232
)

 $
 ( 600,658
)

 $
 105,525

 Issuance of common stock upon exercise of prefunded warrants

 113,155

 —

 —

 —

 —

 —

 Issuance of common stock under At-the-market offering, net of transactional expenses of $ 4,977

 4,174,122

 128,363

 —

 —

 128,367

 Issuance of common stock, net of transactional expenses of $ 2,261

 77,635

 —

 14,215

 —

 —

 14,215

 Fair value of warrants reclassified from liabilities to equity

 —

 —

 26,682

 —

 —

 26,682

 Fair value of warrants classified from equity to liabilities

 —

 —

 ( 9,977
)

 —

 —

 ( 9,977
)

 Employee stock purchase plan

 —

 —

 —

 Stock-based compensation

 —

 —

 4,778

 —

 —

 4,778

 Foreign currency transaction gain

 —

 —

 —

 ( 23
)

 —

 ( 23
)

 —

 —

 —

 —

)

)

 Balance, December 31, 2024

 4,385,929

 $

 $
 870,503

 $
 ( 255
)

 $
 ( 730,694
)

 $
 139,558

 See the accompanying notes to the consolidated

 F- 6

 CONSOLIDATED STATEMENTS OF STOCKHOLDERS'
EQUITY

 (In Thousands, Except Share and Per Share
Amounts)

 Accumulated

 Additional

 Other

 Common stock

 Paid in

 Comprehensive

 Accumulated

 Shares

 Amount

 Capital

 Gain (loss)

 Deficit

 Total

 Balance, December 31, 2022

 6,446

 $
 —

 $
 677,387

 $
 ( 167
)

 $
 ( 470,038
)

 $
 207,182

 Repurchase of common stock under Share Repurchase Program, including transactional expenses of $ 334

 ( 836
)

 —

 ( 3
)

 —

 ( 13,962
)

 ( 13,965
)

 Issuance of common stock under 2022 Purchase agreement

 —

 —

 —

 Issuance of common stock under At-the-market offering, net of transactional expenses of $ 137

 —

 3,024

 —

 —

 3,024

 Issuance of common stock and warrants under AGP Financing, net of transactional expenses of $ 2,663

 9,977

 —

 16,262

 —

 —

 16,262

 Issuance of common stock upon exercise of prefunded common warrants

 4,982

 —

 —

 —

 —

 —

 Employee stock purchase plan

 —

 —

 —

 Stock-based compensation

 —

 —

 9,275

 —

 —

 9,275

 Foreign currency transaction gain

 —

 —

 —

 ( 65
)

 —

 ( 65
)

 —

 —

 —

 —

)

)

 Balance, December 31, 2023

 20,926

 $
 —

 $
 706,415

 $
 ( 232
)

 $
 ( 600,658
)

 $
 105,525

 See the accompanying notes to the consolidated

 F- 7

 CONSOLIDATED STATEMENTS OF CASH FLOWS

 (In Thousands)

 2024

 2023

 CASH FLOWS FROM OPERATING ACTIVITIES:

 $
)

 $
)

 Adjustments to reconcile net loss to net cash used in operating activities:

 Depreciation and amortization

 3,421

 4,291

 Asset impairment charges

 58,957

 —

 Stock-based compensation

 4,778

 9,275

 Change in fair value of warrant liabilities

 ( 6,150
)

 Offering costs allocated to warrant liabilities

 —

 Inventory write-off

 1,490

 —

 Amortization of debt discounts

 —

 Gain on sale of property and equipment

 —

 ( 62
)

 Changes in operating assets and liabilities:

 Accounts receivable

 ( 3,683
)

 —

 Inventory

 3,741

 Prepaid expenses and other

 3,613

 1,573

 Accounts payable

 ( 3,490
)

 Operating lease liabilities and ROU asset, net

 ( 13
)

 Accrued expenses and other current liabilities

 1,190

 1,786

 Net cash used in operating activities

 ( 60,925
)

 ( 102,003
)

 CASH FLOWS FROM INVESTING ACTIVITIES:

 Purchase of business

 —

 ( 22,174
)

 Disposal of property and equipment

 —

 Purchase of property and equipment

 ( 120
)

 ( 7,895
)

 Net cash used in investing activities

 ( 120
)

 ( 29,070
)

 CASH FLOWS FROM FINANCING ACTIVITIES:

 Deferred payment related to purchase of business

 ( 3,000
)

 —

 Proceeds from ESPP

 Repayments of term loan

 ( 2,350
)

 —

 Redemption of convertible preferred stock

 —

 —

 Proceeds from debt financing

 —

 8,942

 Proceeds, net of $ 7,238 and $ 2,800 expenses, from sale of common stock and warrants

 140,195

 18,939

 Proceeds from allocated warrant liabilities

 —

 22,572

 Repurchase of common stock

 —

 ( 13,965
)

 Net cash provided by financing activities

 134,872

 36,517

 Effect of currency rate change on cash

 ( 65
)

 Net increase (decrease) in cash, cash equivalents and restricted cash

 73,831

 ( 94,621
)

 Cash, cash equivalents and restricted cash beginning of the period

 25,849

 120,470

 Cash, cash equivalents and restricted cash end of period

 $
 99,680

 $
 25,849

 Supplemental disclosures of cash flow information:

 Interest paid

 $
 1,234

 $

 Purchases of property and equipment included in accounts payable and accrued liabilities

 $
 —

 $

 Net ATM proceeds received after year-end

 $
 2,387

 $
 —

 Debt financing costs included in accrued liabilities and other current liabilities

 $
 —

 $

 Issuance costs included in accrued liabilities and other current liabilities

 $
 —

 New operating leases and lease amendments

 $
 —

 See the accompanying notes to consolidated

 F- 8

 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 NOTE 1 – BUSINESS

 Tonix Pharmaceuticals
Holding Corp. ("Tonix" or the "Company"), through its wholly owned subsidiary Tonix Pharmaceuticals, Inc.
("Tonix Sub"), is a fully integrated biopharmaceutical company focused on transforming therapies for pain management
and vaccines for public health challenges.

 Tonix's priority is to advance TNX-102 SL, a product candidate for
the management of fibromyalgia, for which an NDA was submitted based on two statistically significant Phase 3 studies for the management
of fibromyalgia and for which a PDUFA (Prescription Drug User Fee act) goal date of August 15, 2025 has been assigned for a decision on
marketing authorization. The FDA has also granted Fast Track designation to TNX-102 SL for the management of fibromyalgia. TNX-102 SL
is also being developed to treat acute stress reaction and acute stress disorder under a Physician-Initiated IND at the University of
North Carolina in the OASIS study funded by the U.S. Department of Defense (DoD). Tonix's CNS portfolio includes TNX-1300 (cocaine
esterase), a biologic in Phase 2 development designed to treat cocaine intoxication that has FDA Breakthrough Therapy designation, and
its development is supported by a grant from the National Institute on Drug Abuse. Tonix's immunology development portfolio consists
of biologics to address organ transplant rejection, autoimmunity and cancer, including TNX-1500, which is an Fc-modified humanized monoclonal
antibody targeting CD40-ligand (CD40L or CD154) being developed for the prevention of allograft rejection and for the treatment of autoimmune
diseases. Tonix also has product candidates in development in infectious disease, including a vaccine for mpox, TNX-801. Tonix recently
announced a contract with the U.S. DoD's Defense Threat Reduction Agency (DTRA) for up to $ 34 million over five years to develop
TNX-4200, small molecule broad-spectrum antiviral agents targeting CD45 for the prevention or treatment of infections to improve the medical
readiness of military personnel in biological threat environments. Tonix owns and operates a state-of-the art infectious disease research
facility in Frederick, Md. Tonix Medicines, our commercial subsidiary, markets Zembrace SymTouch (sumatriptan injection) 3 mg
and Tosymra (sumatriptan nasal spray) 10 mg for the treatment of acute migraine with or without aura in adults.

 The consolidated financial
statements include the accounts of Tonix Pharmaceuticals Holding Corp. and its wholly owned subsidiaries, Tonix Sub, Krele LLC,
Tonix Pharmaceuticals (Canada), Inc., Tonix Medicines, Inc., Jenner Institute LLC, Tonix R&D Center LLC, Tonix Pharma Holdings
Limited and Tonix Pharma Limited (collectively, the "Company" or "Tonix"). All intercompany balances and
transactions have been eliminated in consolidation.

 Going Concern

 The accompanying financial
statements have been prepared on a basis which assumes that the Company will continue as a going concern and which contemplates
the realization of assets and satisfaction of liabilities and commitments in the normal course of business. The Company has suffered
recurring losses from operations and negative cash flows from operating activities. At December 31, 2024, the Company had working
capital of approximately $ 100.7 million. At December 31, 2024, the Company had an accumulated deficit of approximately $ 730.7 million.
The Company held unrestricted cash and cash equivalents of approximately $ 98.8 million as of December 31, 2024.

 F- 9

 TONIX
 NOTES

 The Company believes
that its cash resources at December 31, 2024 and the net proceeds of $ 46.3
million that it raised from equity offerings in the first quarter of 2025 (See Note 13), will not meet its planned operating and
capital expenditure requirements into the first quarter of 2026, but not beyond.

 These factors raise
substantial doubt about the Company's ability to continue as a going concern. The Company continues to face significant challenges
and uncertainties and must obtain additional funding through public and private financing and collaborative arrangements with strategic
partners to increase the funds available to fund operations. However, the Company may not be able to raise capital on terms acceptable
to the Company, or at all. Without additional funds, it may be forced to delay, scale back or eliminate some or all of its research
and development activities or other operations, and potentially delay product development in an effort to maintain sufficient funds
to continue operations. If any of these events occurs, the Company's ability to achieve development and commercialization
goals will be adversely affected and the Company may be forced to cease operations. The financial statements do not include any adjustments that might result from the outcome
of this uncertainty.

 NOTE 2 – SIGNIFICANT ACCOUNTING
POLICIES

 Reverse Stock Split

 On June 10, 2024, the
Company effected a 1-for-32 reverse stock split of its issued and outstanding shares of common stock, The Company accounted for
the reverse stock split on a retrospective basis pursuant to ASC 260, Earnings Per Share. All issued and outstanding common stock,
common stock warrants, stock option awards, exercise prices and per share data have been adjusted in these consolidated
financial statements, on a retrospective basis, to reflect the reverse stock split for all periods presented. Authorized common
and preferred stock were not adjusted because of the reverse stock split.

 On February 5, 2025,
the Company effected a 1-for-100 reverse stock split of its issued and outstanding shares of common stock, The Company accounted
for the reverse stock split on a retrospective basis pursuant to ASC 260, Earnings Per Share. All issued and outstanding common
stock, common stock warrants, stock option awards, exercise prices and per share data have been adjusted in these consolidated
financial statements, on a retrospective basis, to reflect the reverse stock split for all periods presented. Authorized common
and preferred stock were not adjusted because of the reverse stock split.

 Risks and uncertainties

 The Company's
primary efforts are devoted to conducting research and development of innovative pharmaceutical and biological products to address
public health challenges. The Company has experienced net losses and negative cash flows from operations since inception and expects
these conditions to continue for the foreseeable future. Further, the Company now has commercial products available for sale, and
generates revenue from the sale of its Zembrace SymTouch and Tosymra products, with no assurance that the Company will be able
to generate sufficient cash flow to fund operations from its commercial products or products in development if and when approved.
In addition, there can be no assurance that the Company's research and development will be successfully completed or that
any product will be approved or commercially viable.

 F- 10

 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 Use of estimates

 The preparation of financial statements in accordance with Generally Accepted
Accounting Principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts
of expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include, but are not
limited to, impairments, provisions for product returns, coupons, rebates, chargebacks, discounts, allowances, inventory realization,
the assumptions used in the fair value of stock-based compensation and other equity instruments, the percent of completion of research
and development contracts, fair value estimates for assets acquired in business combinations, and assessment of useful lives of acquired
intangible assets.

 Business Combinations

 The Company accounts
for business combinations in accordance with the provisions of ASC 805, Business Combinations and ASU No. 2017-01, Business Combinations
(Topic 805): Clarifying the Definition of a Business. Business combinations are accounted for using the acquisition method, whereby
the consideration transferred is allocated to the net assets acquired based on their respective fair values measured on the acquisition
date. The difference between the fair value of these assets and the purchase price is recorded as goodwill. Transaction costs other
than those associated with the issue of debt or equity securities, and other direct costs of a business combination are not considered
part of the business acquisition transaction and are expensed as incurred.

 Segment Information and Concentrations

 The Company adopted
Accounting Standard Update ("ASU") 2023-07, Segment Reporting (Topic 280) – Improvements to Reportable Segment
Disclosures, as of January 1, 2024.

 Operating segments
are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating
decision maker ("CODM"), or decision-making group, in deciding how to allocate resources and in assessing performance.
The Company considers its chief executive officer to be the Company's CODM. The CODM manages its operations and allocates
resources based on the Company's consolidated results and therefore operates as one segment.

 Segment revenue, profit
or loss, significant segment expenses and other segment items - The accounting policies of the Company's single operating
and reportable segment are the same as those described in the summary of significant accounting policies. The Company's method
for measuring segment profitability includes net income (loss), which the CODM uses to assess performance and make decisions for resource
allocation, consistent with the measurement principals for net income (loss) as reported on the Company's consolidated statement
of operations. The significant expenses regularly reviewed by the CODM are consistent with those reported on the Company's
consolidated statement of operations, and expenses are not regularly reviewed on a more disaggregated basis for purposes of assessing
segment performance and deciding how to allocate resources. The measure of segment assets is reported.

 The Company has two products that each accounted for $8.5 million and $1.6
million, respectively, representing 100 % of total revenues during the year ended December 31, 2024 and 2023.

 As of December 31,
2024, accounts receivable from four customers accounted for 30 %, 26 %, 25 %, and 9 % of accounts receivable. As of December 31, 2023,
accounts receivable from five customers accounted for 26 %, 21 %, 16 %, 14 % and 13 % of total accounts receivable.

 For the year ended
December 31, 2024, revenues from five customers accounted for 24 %, 23 %, 22 %, 16 % and 10 % of net product revenues, respectively.
For the year ended December 31, 2023, revenues from four customers accounted for 25 %, 21 %, 18 % and 14 % of net product revenues,
respectively.

 F- 11

 TONIX
 NOTES

 Cash, Cash Equivalents and Restricted Cash

 The Company considers
cash equivalents to be those investments which are highly liquid, readily convertible to cash and have an original maturity of
three months or less when purchased. At December 31, 2024 and 2023, cash equivalents, which consisted of money market funds, amounted
to $ 24,000 and $ 23,000, respectively. Restricted cash, which is included in Other non-current assets on the consolidated balance sheet, at both December 31, 2024 and 2023, of approximately $ 0.9 million collateralizes a letter of credit
issued in connection with the lease of office space in Chatham, New Jersey (see Note 16) and restricted cash held by vendors in
escrow accounts for patient support services.

provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets
that sum to the total of the same amounts shown in the consolidated statement of cash flows:

 2024

 2023

 Cash and cash equivalents

 $

 98,776

 $

 24,948

 Restricted cash

 Total

 $

 99,680

 $

 25,849

 Accounts Receivable, net

 Accounts receivable
consists of amounts due from our wholesale and other third-party distributors and pharmacies and have standard payment terms that
generally require payment within 30 to 90 days. For certain customers, the accounts receivable for the customer is net of cash
discounts, chargebacks and customer rebates. We do not adjust our receivables for the effects of a significant financing component
at contract inception if we expect to collect the receivables in one year or less from the time of sale. We provide reserves against
accounts receivable for estimated losses that may result from a customer's inability to pay. Amounts determined to be uncollectible
are charged or written-off against the reserve.

 As of December
31, 2024, the Company did not have an allowance for credit losses, as the Company's exposure to credit losses is de minimis.
An allowance for credit losses is determined based on the financial condition and creditworthiness of customers and the Company
considers economic factors and events or trends expected to affect future collections experience. Any allowance would reduce the
net receivables to the amount that is expected to be collected. The payment history of the Company's customers will be considered
in future assessments of collectability as these patterns are established over a longer period.

 Concentration of Credit Risk

 Financial instruments
that potentially subject us to concentrations of credit risk include cash and cash equivalents, and accounts receivable. We attempt
to minimize the risks related to cash and cash equivalents by investing in a broad and diverse range of financial instruments,
and we have established guidelines related to credit ratings and maturities intended to safeguard principal balances and maintain
liquidity. Concentrations of credit risk with respect to receivables, which are typically unsecured, are somewhat mitigated due
to the variety of customers using our products, as well as their dispersion across different geographic areas.

 We monitor the financial
performance and creditworthiness of our customers so that we can properly assess and respond to changes in their credit profile.
We continue to monitor these conditions and assess their possible impact on our business.

 F- 12

 TONIX
 NOTES

 Inventories

 Inventories are recorded
at the lower of cost or net realizable value, with cost determined by the weighted average cost method. Acquired inventory was
valued at estimated selling price less a reasonable margin. The Company periodically reviews the composition of inventory in order
to identify excess, obsolete, slow-moving or otherwise non-saleable items taking into account anticipated future sales compared
with quantities on hand, and the remaining shelf life of goods on hand. If non-saleable items are observed and there are no alternate
uses for the inventory, the Company records a write-down to net realizable value in the period that the decline in value is first
recognized. During the year ended December 31, 2024, the Company recorded write-downs related to Tosymra and Zembrace finished
goods inventory of approximately $ 0.3 million and $ 1.2 million, respectively, based on an assessment of inventory on hand and projected
sales prior to the respective expiration dates. Although the Company makes every effort to ensure the accuracy of forecasts of
future product demand, any significant unanticipated decreases in demand could have a material impact on the carrying value of
inventories and reported operating results.

 The Company did not
have inventory on hand prior to the acquisition of Zembrace and Tosymra on June 30, 2023.

 Property and equipment

 Property and equipment
are stated at cost, less accumulated depreciation. Depreciation and amortization is calculated using the straight-line method over
the asset's estimated useful life, which ranges from 20 to 40 years for buildings, 15 years for land improvements and laboratory
equipment, three years for computer assets, five years for furniture and all other equipment and the shorter of the useful life
or term of lease for leasehold improvements. Depreciation and amortization on assets begin when the asset is placed in service.
Depreciation and amortization expense for the years ended December 31, 2024, and 2023 was $ 2.9 million and $ 3.8 million, respectively.
The Company's property and equipment is located in the United States.

 Intangible assets, net

 Intangible assets deemed
to have finite lives are carried at acquisition-date fair value less accumulated amortization and impairment, if any. Finite-lived
intangible assets consist of developed technology intangible assets acquired in connection with the acquisition of certain products
from Upsher Smith Laboratories, LLC ("Upsher Smith") consummated on June 30, 2023 (See Note 5). The acquired intangible
assets are amortized using the straight-line method over the estimated useful lives of the respective assets. Amortization expense
for both the years ended December 31, 2024, and 2023, was $ 0.5 million. The Company recorded a full impairment of its developed
technology assets during the second quarter of 2024, discussed further below.

 Impairment testing of long-lived assets

 The Company evaluates
long-lived assets for impairment, including property and equipment, finite-lived intangibles assets and operating lease right-to-use
assets whenever events or changes in circumstances indicate that their net book value may not be recoverable. When such factors
and circumstances exist, the Company compares the projected undiscounted future cash flows associated with the related asset or
group of assets over their estimated useful lives against their respective carrying amount. Impairment, if any, is based on the
excess of the carrying amount over the fair value, based on market value when available, or discounted expected cash flows, of
those assets and is recorded in the period in which the determination is made.

 During the second quarter
of 2024, the Company identified certain triggering events related to and the decommissioning of the ADC. The Company determined
that the carrying value of the ADC was not recoverable and that the carrying value exceeded its fair value. As such, the Company
recorded a non-cash impairment charge of $ 48.8 million, which is reflected in asset impairment charges in the consolidated statements
of operations for the year ended December 31, 2024.

 Additionally, due to
a sustained decline in revenues and continued delays in building out the sales team for its commercialized products, the Company
also tested its commercialized products asset group for recoverability during the second quarter of 2024. The Company determined
that the carrying value was not recoverable and therefore estimated the fair value of the asset group using a discounted cash flow
analysis. The Company recorded a non-cash impairment charge for the amount of $ 9.2 million, representing the excess carrying value
over the fair value, consisting of $ 6.2 million and $ 3.0 million for the Zembrace and Tosymra developed technology intangible assets,
respectively, which is reflected in asset impairment charges in the consolidated statements of operations for the year ended December
31, 2024.

 F- 13

 TONIX
 NOTES

 Goodwill

 Goodwill represents
the excess of the aggregate purchase price over the fair value of the net tangible and intangible assets acquired in a business
combination. Goodwill is reviewed for impairment on an annual basis, or more frequently if events or changes in circumstances indicate
that the carrying amount of goodwill may be impaired. The Company previously recognized goodwill in connection with the USL Acquisition
consummated on June 30, 2023 (See Note 5). The Company completed the required annual impairment test for goodwill during the second
quarter of 2024, which resulted in full non-cash impairment of the Company's $ 965,000 of goodwill, which is reflected in
asset impairment charges in the consolidated statements of operations for the year ended December 31, 2024.

 Leases

 The Company determines
if an arrangement is, or contains, a lease at inception. Operating leases are included in operating lease right-of-use ("ROU")
assets, operating lease liabilities, current and operating lease liabilities, noncurrent in the Company's consolidated balance
sheets. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent
its obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement
date based on the present value of lease payments over the lease term. As the Company's leases do not provide an implicit
rate, the Company uses an incremental borrowing rate based on the information available at the transition date and subsequent lease
commencement dates in determining the present value of lease payments. This is the rate the Company would have to pay if borrowing
on a collateralized basis over a similar term to each lease. The operating lease ROU asset excludes lease incentives. The Company's
lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that
option. Lease expense for lease payments made under operating leases is recognized on a straight-line basis over the lease term.

 Deferred financing costs

 Deferred financing
costs represent the cost of obtaining financing arrangements and are amortized over the term of the related debt agreement using
the effective interest method. Deferred financing costs related to term debt arrangements are reflected as a direct reduction of
the related debt liability on the consolidated balance sheet. Amortization of deferred financing costs are included in interest
expense on the consolidated statements of operations.

 Original issue discount

 Certain term debt issued
by the Company provides the debt holder with an original issue discount. Original issue discounts are reflected as a direct reduction
of the related debt liability on the consolidated balance sheets and are amortized over the term of the related debt agreement
using the effective interest method. Amortization of original issue discounts are included in interest expense on the consolidated
statements of operations

 Revenue Recognition

 The Company records
and recognizes revenue in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects
the consideration to which the Company expects to be entitled in exchange for those goods or services. The Company's revenues
primarily result from contracts with customers, which are generally short-term and have a single performance obligation - the delivery
of product. The Company's performance obligation to deliver products is satisfied at the point in time that the goods are
received by the customer, which is when the customer obtains title to and has the risks and rewards of ownership of the products,
which is generally upon shipment or delivery to the customer as stipulated by the terms of the sale agreements. The transaction
price is the amount of consideration to which the Company expects to be entitled in exchange for transferring promised goods to
a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. Our
contractual payment terms are typically 30 to 90 days.

 F- 14

 TONIX
 NOTES

 Revenues from product
sales, net of gross-to-net deductions, are recorded only to the extent a significant reversal in the amount of cumulative revenue
recognized is not probable of occurring and when the uncertainty associated with gross-to-net deductions is subsequently resolved.
Taxes assessed by governmental authorities and collected from customers are excluded from product sales. Shipping and handling
activities are considered to be fulfillment activities and not a separate performance obligation.

 Many of the Company's
products sold are subject to a variety of deductions. Revenues are recognized net of estimated rebates and chargebacks, cash discounts,
distributor fees, sales return provisions and other related deductions. Deductions to product sales are referred to as gross-to-net
deductions and are estimated and recorded in the period in which the related product sales occur. Accruals for these provisions
are presented in the consolidated financial statements as reductions to gross sales in determining net sales, and as a contra asset
within accounts receivable, net (if settled via credit) and other current liabilities (if paid in cash). Amounts recorded for revenue
deductions can result from a complex series of judgements about future events and uncertainties and can rely heavily on estimates
and assumptions. The following section briefly describes the nature of the Company's provisions for variable consideration
and how such provisions are estimated:

 Chargebacks -
The Company sells a portion of its products indirectly through wholesaler distributors, and enters into specific agreements with
these indirect customers to establish pricing for the Company's products, and in-turn, the indirect customers and entities
independently purchase these products. Because the price paid by the indirect customers and/or entities is lower than the price
paid by the wholesaler, the Company provides a credit, called a chargeback, to the wholesaler for the difference between the contractual
price with the indirect customers and the wholesale customer's purchase price. The Company's provision for chargebacks
is based on expected sell-through levels by the Company's wholesale customers to the indirect customers and estimated wholesaler
inventory levels as well as historical chargeback rates. The Company continually monitors its reserve for chargebacks and adjusts
the reserve accordingly when expected chargebacks differ from actual experience.

 Rebates - The
Company participates in certain government and specific sales rebate programs which provides discounted prescription drugs to qualified
recipients, and primarily relate to Medicaid and managed care rebates, pharmacy rebates, Tri-Care rebates and discounts,
specialty pharmacy program fees and other governmental rebates or applicable allowances.

 Managed Care Rebates are processed in the quarter following the quarter in which they are earned. The managed care reporting entity submits utilization data after the end of the quarter and the Company processes the payment in accordance with contract terms. All rebates earned but not paid are estimated by the Company according to historical payments trended for market growth assumptions.

 Medicaid and State Agency rebates are based upon historical experience of claims submitted by various states. The Company monitors Medicaid legislative changes to determine what impact such legislation may have on the provision for Medicaid rebates. The accrual of State Agency reserves is based on historical payment rates. There is an approximate three-month lag from the time of product sale until the rebate is paid.

 Tri-Care represents a regionally managed health care program for active duty and retired members, dependents and survivors of the US military. The Tri-Care program supplements health care resources of the US military with civilian health care professionals for greater access and quality healthcare coverage. Through the Tri-Care program, the Company provides pharmaceuticals on a direct customer basis. Prices of pharmaceuticals sold under the Tri-Care program are pre-negotiated and a reserve amount is established to represent the proportionate rebate amount associated with product sales.

 Coverage Gap refers to the Medicare prescription drug program and represents specifically the period between the initial Medicare Part D prescription drug program coverage limit and the catastrophic coverage threshold. Applicable pharmaceutical products sold during this coverage gap timeframe are discounted by the Company. Since the nature of the program is that coverage limits are reset at the beginning of the calendar year; the payments escalate each quarter as the participants reach the coverage limit before reaching the catastrophic coverage threshold. The Company has determined that the cost of this reserve will be viewed as an annual cost. Therefore, the accrual will be incurred evenly during the year with quarterly review of the liability based on payment trends and any revision to the projected annual cost.

 F- 15

 TONIX
 NOTES

 Prompt-Pay and other
Sales Discounts - The Company provides for prompt pay discounts, which early payments are recorded as a reduction of revenue
and as a reduction in the accounts receivable at the time of sale based on the customer's contracted discount rate. Consumer
sales discounts represent programs the Company has in place to reduce costs to the patient. This includes copay buy down and eVoucher
programs.

 Product Returns
- Consistent with industry practice, the Company offers customers a right to return any unused product. The customer's right
of return commences typically six months prior to product expiration date and ends one year after product expiration date. Products
returned for expiration are reimbursed at current wholesale acquisition cost or indirect contract price. The Company estimates
the amount of its product sales that may be returned by the Company's customers and accrues this estimate as a reduction
of revenue in the period the related product revenue is recognized. The Company estimates products returns as a percentage of sales
to its customers. The rate is estimated by using historical sales information, including its visibility and estimates into the
inventory remaining in the distribution channel. Adjustments are made to the current provision for returns when data suggests product
returns may differ from original estimates.

 Research and Development Costs

 The Company outsources
certain of its research and development efforts and expenses these costs as incurred, including the cost of manufacturing products
for testing, as well as licensing fees and costs associated with planning and conducting clinical trials. The value ascribed to
patents and other intellectual property acquired has been expensed as research and development costs, as such property is related
to particular research and development projects and had no alternative future uses.

 The Company estimates
its expenses resulting from its obligations under contracts with vendors, clinical research organizations and consultants and under
clinical site agreements in connection with conducting clinical trials. The financial terms of these contracts are subject to negotiations,
which vary from contract to contract and may result in payment flows that do not match the periods over which materials or services
are provided under such contracts. The Company accounts for trial expenses according to the timing of various aspects of the trial.
The Company determines accrual estimates taking into account discussion with applicable personnel and outside service providers
as to the progress or state of consummation of trials, or the services completed.

 During the course of
a clinical trial, the Company adjusts its clinical expense recognition if actual results differ from its estimates. The Company
makes estimates of its accrued expenses as of each balance sheet date based on the facts and circumstances known to it at that
time. The Company's clinical trial accruals are dependent upon the timely and accurate reporting of contract research organizations
and other third-party vendors.

 Government Grants

 From time to time,
the Company may enter into arrangements with governmental entities for the purpose of obtaining funding for research and development
activities. The Company is reimbursed for costs incurred that are associated with specified research and development activities
included in the grant application approved by the government authority and, in certain arrangements. U.S. GAAP does not have specific
accounting standards covering government grants to business entities. The Company applies International Accounting Standards 20
("IAS 20"), Accounting for Government Grants and Disclosure of Government Assistance by analogy when accounting for
government grants. Under IAS 20, government grants are initially recognized when there is reasonable assurance the conditions of
the grant will be met and the grant will be received. After initial recognition, government grants received are recognized in earnings
in the same period the underlying costs for which the grant is intended to compensate are incurred. The Company classifies government
grants received under these arrangements as either a reduction to the related research and development expense or as grant income
in the consolidated statements of operations, depending on the fee structure of the arrangement. The Company also applies
the disclosure requirements of ASC 832, Government Assistance.

 F- 16

 TONIX
 NOTES

 In August 2022, the
Company received a Cooperative Agreement grant from the National Institute on Drug Abuse ("NIDA"), part of the National
Institutes of Health, to support the development of its TNX-1300 product candidate for the treatment of cocaine intoxication. During
the year ended December 31, 2024, we received $ 1.4 million in funding as a reduction of related research and development
expense. Included in prepaid expenses and other current assets is an additional $ 0.2 million which was received in February 2025
and resulted in a further reduction of research and development expense during the year ended December 31, 2024. During the year
ended December 31, 2023, we received $ 2.7 million in funding as a reduction of related research and development expense.

 In June 2024, the Company
was awarded a prototype Other Transaction Agreement from the Defense Threat Reduction Agency ("DTRA"), an agency within
the U.S. Department of Defense, to fund the Company's TNX-4200 program for the development of a small molecule broad-spectrum
antiviral for the prevention or treatment of viral infections to improve the medical readiness of military personnel in biological
threat environments. The DTRA grant provides for payments totaling up to $ 34.1 million over five years, which is subject to adjustment
based on costs, scope, budget, and other factors as the program advances. Funding under the DTRA grant is earned and recognized
under a cost-plus-fixed-fee arrangement in which the Company is reimbursed for all direct costs incurred plus allowable indirect
costs and a fixed fee. During the year ended December 31, 2024, $ 2.6 million was recognized in grant income related to the
DTRA grant. As of December 31, 2024, $ 0.6 million of grant income, included above, was earned but not yet received and is presented
in prepaid expenses and other current assets.

 Stock-based Compensation.

 All stock-based payments
to employees and to nonemployees for their services, including grants of restricted stock units ("RSUs"), and stock
options, are measured at fair value on the grant date and recognized in the consolidated statements of operations as compensation
expense over the requisite service period. The Company accounts for share-based awards in accordance with the provisions of the
Accounting Standards Codification ("ASC") 718, Compensation – Stock Compensation.

 Foreign Currency Translation

 Operations of the Company's
Canadian subsidiary, Tonix Pharmaceuticals (Canada), Inc., are conducted in local currency, which represents its functional currency.
The U.S. dollar is the functional currency of the other foreign subsidiaries. Balance sheet accounts of the Canadian subsidiary
were translated from foreign currency into U.S. dollars at the exchange rate in effect at the balance sheet date and income statement
accounts were translated at the average rate of exchange prevailing during the period. Translation adjustments resulting from this
process were included in accumulated other comprehensive loss on the consolidated balance sheets.

 Comprehensive Income (Loss)

 Comprehensive income
(loss) is defined as the change in equity of a business during a period from transactions and other events and circumstances from
non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions
to owners. Other comprehensive income (loss) represents foreign currency translation adjustments.

 Income Taxes

 Deferred income tax
assets and liabilities are determined based on the estimated future tax effects of net operating loss and credit carryforwards
and temporary differences between the tax basis of assets and liabilities and their respective financial reporting amounts measured
at the current enacted tax rates. The Company records a valuation allowance on its deferred income tax assets if it is not more
likely than not that these deferred income tax assets will be realized.

 The Company recognizes
a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination
by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial
statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized
upon ultimate settlement. As of December 31, 2024, the Company has not recorded any unrecognized tax benefits. The Company's
policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense.

 F- 17

 TONIX
 NOTES

 Derivative Instruments and Warrant Liabilities

 The Company evaluates
all of its financial instruments, including issued warrants to purchase common stock under ASC 815 – Derivatives and Hedging,
to determine if such instruments are derivatives or contain features that qualify as embedded derivatives (See Note 15). For derivative
financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value
and is then re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations.
The Company uses the Black-Scholes option pricing model to value the derivative instruments at inception and subsequent valuation
dates, which is adjusted for instrument-specific terms as applicable.

 From time to time,
certain equity-linked instruments may be classified as derivative liabilities due to the variable exercise price of the shares
to fully settle the equity-linked financial instruments in shares. In such case, the Company has adopted a sequencing approach
under ASC 815-40, Derivatives and Hedging - Contracts in Entity's Own Equity to determine the classification of its contracts
at issuance and at each subsequent reporting date.

 In the event that reclassification
of contracts between equity and assets or liabilities is necessary, the Company first allocates remaining authorized shares to
equity on the basis of the earliest issuance date of potentially dilutive instruments, with the earliest issuance date receiving
the first allocation of shares. In the event of identical issuance dates, shares are then allocated to equity beginning with instruments
with the latest maturity date first.

 The classification
of derivative instruments is reassessed at each reporting date. If the classification changes as a result of events during a reporting
period, the instrument is reclassified as of the date of the event that caused the reclassification. There is no limit on the number
of times a contract may be reclassified.

 Per Share Data

 The computation of
basic and diluted loss per share for the year ended December 31, 2024 and 2023 excludes potentially dilutive securities when their
inclusion would be anti-dilutive, or if their exercise prices were greater than the average market price of the common stock during
the period. Prefunded warrants are assumed exercised on date of issuance and are included in the basic earnings per share ("EPS")
calculation.

 All warrants (See Note
15) issued participate on a one-for-one basis with common stock in the distribution of dividends, if and when declared by the Board
of Directors, on the Company's common stock. For purposes of computing EPS, these warrants are considered to participate
with common stock in earnings of the Company. Therefore, the Company calculates basic and diluted EPS using the two-class method.
Under the two-class method, net income for the period is allocated between common stockholders and participating securities according
to dividends declared and participation rights in undistributed earnings. No income was allocated to the warrants for the year
ended December 31, 2024, and 2023, as results of operations were a loss for the periods.

 Potentially dilutive
securities excluded from the computation of basic and diluted net loss per share, as of December 31, 2024 and 2023, are as follows:

 2024

 2023

 Warrants to purchase common stock

 45,664

 65,431

 Options to purchase common stock

 3,865

 Totals

 49,529

 66,205

 F- 18

 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 Recently
Adopted and Issued Accounting Pronouncements

 Recently Adopted Accounting Pronouncements

 In November 2023, the
Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment
Reporting (Topic 280), Improvements to Reportable Segment Disclosures, which is intended to improve reportable segment disclosure
requirements, primarily through enhanced disclosures about significant segment expenses. Effective January 1, 2024, the Company
adopted the new standard on a retrospective basis for annual periods, and interim periods beginning for the first quarter of 2025.
The Company does not believe the impact of the new guidance and related codification improvements had a material impact to its
financial position, results of operations and cash flows.

 Recently Issued Accounting
Pronouncements

 In December 2023, the
FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, which requires disaggregated information about our effective tax
rate reconciliation as well as information on income taxes paid. The guidance will first be effective in our annual disclosures
for the year ending December 31, 2025, and should be applied on a prospective basis with the option to apply retrospectively. Early
adoption is permitted. The Company is in the process of assessing the impact of ASU 2023-09 on our disclosures.

 In March 2024, the
SEC adopted new rules relating to the disclosure of a range of climate-change-related physical and transition risks, data, and
opportunities. The adopted rule contains several new disclosure obligations, including, (i) disclosure on how the board of directors
and management oversee climate-related risks and certain climate-related governance items, (ii) disclosure of information related
to a registrant's climate-related targets, goals, and/or transition plans, and (iii) disclosure on whether and how climate-related
events and transition activities impact line items above a threshold amount on a registrant's consolidated financial statements,
including the impact of the financial estimates and the assumptions used. This new rule will first be effective in the Company's
disclosures for the year ending December 31, 2027. The Company is in the process of assessing the impact on our consolidated financial
statements and disclosures.

 In November 2024, the
FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures, to
improve transparency in financial reporting by requiring entities to present more detailed information about the nature of expenses
included within the Income Statement. The guidance will first be effective for annual reporting periods beginning after December
15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is in the process
of assessing the impact of ASU 2024-03 on our disclosures.

 NOTE 3 – INVENTORY

 The components of inventory
consisted of the following as of December 31, 2024 and 2023:

 2024

 2023

 Raw Materials

 $

 3,071

 $

 3,611

 Work-in-process

 2,539

 Finished Goods

 5,124

 7,489

 Total Inventory

 $

 8,408

 $

 13,639

 F- 19

 TONIX

 NOTES

 NOTE 4 – PROPERTY AND EQUIPMENT,
NET

 Property and equipment,
net consisted of the following (in thousands):

 2024

 2023

 Property and equipment, net:

 Land

 $
 8,011

 $
 8,011

 Land improvements

 Buildings

 24,504

 66,749

 Office furniture and equipment

 1,371

 2,366

 Laboratory equipment

 12,124

 21,904

 Leasehold improvements

 Property and equipment gross

 46,349

 99,390

 Less: Accumulated depreciation and amortization

 ( 4,097
)

 ( 5,362
)

 Property and equipment, net

 $
 42,252

 $
 94,028

 During the second
quarter of 2024, primarily as a result of the Company's decision to decommission its ADC facility in Dartmouth, Massachusetts,
the Company recognized a non-cash impairment charge of $ 48.8 million, which is reflected in asset impairment charges in the consolidated
statements of operations for the year ended December 31, 2024. The 45,000 square foot facility was purchased on September 28, 2020,
for $ 4.0 million and incurred approximately $ 61.6 million to the build-out of the facility.

 NOTE 5 – GOODWILL AND INTANGIBLE ASSETS

provides the gross carrying value of goodwill as follows:

 Amounts

 Balance at December 31, 2023

 $

 Impairment of goodwill

 ( 965
)

 Balance at December 31, 2024

 $
 —

 The Company completed
its annual impairment test for goodwill during the second quarter of 2024, which resulted in full impairment of the Company's
$ 965,000 of goodwill, which is reflected in asset impairment charges in the consolidated statements of operations for the year
ended December 31, 2024.

provides the gross carrying amount and accumulated amortization for each major class of intangible asset:

 2024

 2023

 Intangible assets subject to amortization

 Developed technology

 $

 10,100

 $

 10,100

 Less: Impairment charge

 9,147

 —

 Less: Accumulated amortization

 Total

 $

 —

 $

 9,623

 Intangible assets not subject to amortization

 Internet domain rights

 $

 $

 Total intangible assets, net

 $

 $

 9,743

 F- 20

 TONIX
 NOTES

 During the years ended December 31, 2024 and 2023, the Company recorded
amortization of $ 476,000 and $ 477,000, respectively.

 As a result of certain
triggering events identified impacting the Company's commercialized products asset group during the second quarter of 2024,
the Company tested the asset group for impairment as of June 30, 2024, resulting in a full impairment of its Zembrace and Tosymra
developed technology intangible assets, of $ 6.2 million and $ 3.0 million, respectively, which is reflected in asset impairment
charges in the consolidated statements of operations for the year ended December 31, 2024.

 NOTE 6 – FAIR VALUE MEASUREMENTS

 Fair value measurements
affect the Company's accounting for certain of its financial assets. Fair value is defined as the price that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date
and is measured according to a hierarchy that includes:

 Level 1:

 Observable inputs, such as quoted prices in active markets.

 Level 2:

 Inputs, other than quoted prices in active markets, that are observable either directly or indirectly. Level 2 assets and liabilities include debt securities with quoted market prices that are traded less frequently than exchange-traded instruments. This category includes U.S. government agency-backed debt securities and corporate-debt securities.

 Level 3:

 Unobservable inputs in which there is little or no market data.

 As of December 31,
2024, and 2023, the Company used Level 1 quoted prices in active markets to value cash equivalents which were de minimis for both
periods presented. The Company did not have any Level 2 or Level 3 assets or liabilities as of December 31, 2024. As of December
31, 2023, Level 3 liabilities included a portion of the Series D Warrants and all Series C Warrants issued in December 2023, which
did not meet the criteria for equity classification due to insufficient authorized shares to settle the instruments and were therefore
accounted for as liabilities at fair value from the issuance date to January 25, 2024, the date the Company received stockholder
approval to increase the number of authorized shares.

 Additionally, during
the year ended December 31, 2024, Level 3 liabilities included a portion of the Company's outstanding August 2023 Warrants,
Series A Warrants, Series B Warrants, Series C Warrants, and Series D Warrants (collectively, the "Existing Warrants"),
as a result of certain Warrant Amendments executed on April 1, 2024, which provided for potential adjustments to the exercise prices
of the Existing Warrants that were contingent on stockholder approval. As such, the Existing Warrants classified as liabilities
from April 1, 2024, through May 22, 2024, the date the Company received stockholder approval to fix the exercise prices at $ 1,056.00
per share.

 The Company uses the
Black-Scholes option pricing model to estimate the fair value of warrant liabilities as of the respective issuance dates or reclassification
dates, as applicable, using significant unobservable inputs, which represent Level 3 measurements within the fair value hierarchy.
For periods prior to the initial exercise date of the warrants, an additional discount for lack of marketability ("DLOM")
was applied. For the Existing Warrants, the Black-Scholes option pricing model was probability weighted for different exercise
price scenarios, as applicable.

summarizes the range of significant assumptions used in determining the fair value of liability-classified warrants for the years
ended December 31, 2024, and 2023:

 Year ended

 Year ended

 December 31, 2024

 December 31, 2023

 Common stock price

 $

 608.00 - 988.80

 $

 1,289.60

 Risk-free rate

 4.01 % - 5.37 %

 3.84 % - 4.23 %

 Expected term (in years)

 0.86 - 5.00

 1.78 - 5.15

 Expected volatility

 105.00 % - 120.00 %

 108.00 %

 Discount for lack of marketability

 N/A

 5.00 %

 F- 21

 TONIX
 NOTES

 A reconciliation of
the beginning and ending balances for the liability-classified warrants measured at fair value on a recurring basis using significant
unobservable inputs (Level 3) is as follows for the year ended December 31, 2024:

 Warrant liabilities

 Balance at December 31, 2023

 $

 22,855

 Fair value - mark to market adjustment

 ( 7,005

)

 Warrants reclassified from liabilities to equity

 ( 15,850

)

 Warrants reclassified from equity to liabilities

 9,977

 Fair value - mark to market adjustment

 Warrants reclassified from liabilities to equity

 ( 10,832

)

 Balance at December 31, 2024

 $

 —

 A reconciliation of
the beginning and ending balances for the liability-classified warrants measured at fair value on a recurring basis using significant
unobservable inputs (Level 3) is as follows for the year ended December 31, 2023:

 Warrant
 liabilities

 Balance at December 31, 2022

 $
 —

 Warrant liabilities issued

 22,572

 Fair value - mark to market adjustment

 Balance at December 31, 2023

 $
 22,855

 Changes in the fair
value of the liability-classified warrants are recognized as a separate component of income and expense in the consolidated statement
of operations.

 NOTE 7 – OTHER BALANCE SHEET INFORMATION

 Components of selected
captions in the consolidated balance sheets consist of:

 2024

 2023

 Prepaid expenses and other current assets:

 Contract-related

 $

 $
 4,590

 Government grants

 At-the-market receivable

 2,387

 —

 Non-trade receivables

 —

 Debt interest and fees

 1,513

 Inventory

 —

 Insurance

 1,392

 Other

 1,549

 2,228

 $
 8,135

 $
 9,181

 Accrued expenses and other current liabilities:

 Contract-related

 $
 1,816

 $
 2,980

 Upsher Smith obligation

 —

 3,000

 Compensation and compensation-related

 4,496

 4,361

 Gross-to-net deductions

 3,658

 Professional fees and other

 1,398

 $
 10,667

 $
 12,482

 F- 22

 TONIX

 NOTES

 NOTE 8 – DEBT FINANCING

 Long-term debt consists of the following:

 December 31, 2024

 December 31, 2023

 Term Loan

 $
 8,650

 $
 11,000

 Less: current portion

 ( 2,820
)

 ( 2,350
)

 Total long-term debt

 5,830

 8,650

 Less: unamortized debt discount and deferred financing costs

 ( 1,163
)

 ( 2,089
)

 Total long-term debt, net

 $
 4,667

 $
 6,561

 On December 8, 2023,
the Company entered into a Loan and Guaranty Agreement (the "Loan Agreement") by and among the Company, Krele LLC,
Tonix Pharmaceuticals, Inc., Jenner and Tonix R&D Center (collectively, the "Loan Parties"), with JGB Capital,
LP, JGB Partners, LP, JGB (Cayman) Port Ellen Ltd., and any other lender from time to time party hereto (collectively, the "Lenders"),
and JGB Collateral LLC, as administrative agent and collateral agent for the Lenders (in such capacity, "JGB Agent")
for a 36 -month term loan (the "Term Loan") in the aggregate principal amount of $ 11.0 million, with a maturity date
of December 8, 2026 (the "Maturity Date"). The Term Loan was funded with an original issue discount of 9 % of the principal
amount of the Term Loan, or $ 1.0 million, which is being amortized over the term of the debt as an adjustment to the effective
interest rate on the outstanding borrowings.

 Borrowings under the
Term Loan bear interest at a fluctuating rate equal to the greater of (i) the prime rate as defined in the Loan Agreement plus
 3.5 % and (ii) 12 %. Interest is payable monthly in arrears commencing in December 2023. In connection with the Term Loan, the Company
deposited into a reserve account $ 1.8 million to be used exclusively to fund interest payments related to the Term Loan. The remaining
deposit as of December 31, 2024 totals $ 0.2 million, which is reflected in Prepaid expenses and other current assets on the consolidated
balance sheet.

 Commencing on March
8, 2024 and continuing monthly through the Maturity Date, the outstanding principal is due and payable in monthly installments
of $ 0.2 million, with the final remaining balance of unpaid principal and interest due and payable on the Maturity Date. In addition,
the Company must pay a monthly collateral monitoring charge equal to 0.23 % of the outstanding principal amount of the term loan
as of the date of payment. The Company incurred $ 1.1 million in issuance costs, which is being amortized over the term of
the debt as an adjustment to the effective interest rate on the outstanding borrowings.

 The Loan Agreement
provides for voluntary prepayments of the Term Loan, in whole or in part, subject to a prepayment premium. The Loan Agreement contains
customary affirmative and negative covenants by the Company, which among other things, will require the Borrowers to provide certain
financial reports to the lenders, to maintain a deposit account to fund interest payments, and limit the ability of the Company
to incur or guarantee additional indebtedness, pay dividends or make other equity distributions, sell assets, engage in certain
transactions, and effect a consolidation or merger. The obligations of the Company under the Loan Agreement may be accelerated
upon customary events of default, including non-payment of principal, interest, fees and other amounts, covenant default, insolvency,
material judgements, inaccuracy of representations and warranties, invalidity of guarantees. The Term Loan is secured by first
priority security interests in the Company's R&D Center in Frederick, Maryland, the Advanced Development Center in North
Dartmouth, Massachusetts, and substantially all of the relevant deposit accounts.

the first quarter of 2025, the Company paid $ 9.6 million as a result of a pay-off of the above-mentioned loan. The pay-off amount
paid by the Company in connection with the termination of the Loan Agreement was pursuant to a pay-off letter and includes a prepayment
fee of $ 1.0 million in accordance with the terms and provisions of the Loan Agreement.

 F- 23

 TONIX

 NOTES

 NOTE 9 – STOCKHOLDERS' EQUITY

 On June 10, 2024, the
Company effected a 1-for-32 reverse stock split of its issued and outstanding shares of common stock, whereby 95,543,805 outstanding
shares of the Company's common stock were exchanged for 2,985,924 shares of the Company's common stock. In connection
with the reverse stock split, the Company issued an additional 245,205 shares of the Company's common stock due to fractional
shares. These numbers represent the split at the time and are not split adjusted for further split adjustments. All per share amounts and number of shares in the consolidated financial statements and related notes have been
retroactively restated to reflect the reverse stock split. As a result of the reverse-stock-split, on June 26, 2024, the Company's
stock regained compliance with the minimum bid price requirement of $ 1.00 per share for continued listing on the NASDAQ Capital
Market, as set forth in NASDAQ Listing Rule 5550(a)(2).

 On January 25, 2024,
the Company filed a Certificate of Amendment to its Articles of Incorporation, as amended, with the Secretary of State of the State
of Nevada to increase the number of authorized shares of the Company's common stock from 160,000,000 to 1,000,000,000 shares
(the "Charter Amendment"). The Charter Amendment was approved by the Company's shareholders at a special meeting
of shareholders held on January 25, 2024.

 On February 5, 2025,
the Company effected a 1-for-100 reverse stock split of its issued and outstanding shares of common stock, whereby 559,044,486
outstanding shares of the Company's common stock were exchanged for 5,590,667 shares of the Company's common stock.
All per share amounts and number of shares in the consolidated financial statements and related notes have been retroactively
restated to reflect the reverse stock split. As a result of the reverse-stock-split, on February 20, 2025, the Company's
stock regained compliance with the minimum bid price requirement of $ 1.00 per share for continued listing on the NASDAQ Capital
Market, as set forth in NASDAQ Listing Rule 5550(a)(2).

 On February 20,
2025, the Company received a letter from The NASDAQ Stock Market LLC stating that because the Company's shares had a closing
bid price at or above $ 1.00 per share for a minimum of 10 consecutive business days, the Company's stock had regained compliance
with the minimum bid price requirement of $ 1.00 per share for continued listing on the NASDAQ Capital Market, as set forth in NASDAQ
Listing Rule 5550(a)(2), and that the matter is now closed.

 NOTE 10 – REVENUES

 Disaggregation of Net Revenues

 The Company's
net product revenues are summarized below:

 Year ended

 2024

 2023

 Zembrace Symtouch

 $

 8,546

 $

 6,304

 Tosymra

 1,548

 1,464

 Total product revenues

 $

 10,094

 $

 7,768

 The Company recognized revenue
beginning July 1, 2023, as a result of the acquisition of two marketed products.

 Gross-to-Net Sales Accruals

 We record gross-to-net
sales accruals for chargebacks, rebates, sales and other discounts, and product returns, which are all customary to the pharmaceutical
industry.

 Our provision for gross-to-net
allowances was $ 4.5 million at December 31, 2024, of which $ 0.8 million was recorded as a reduction to accounts receivable and
$ 3.7 million was recorded as a component of accrued expenses. Our provision for gross-to-net allowances was $ 2.9 million at December
31, 2023, $ 0.6 million of which was recorded as a reduction to accounts receivable and $ 2.3 million recorded as a component of
accrued expenses.

 F- 24

 TONIX

 NOTES

 NOTE 11 – ASSET PURCHASE AGREEMENT WITH UPSHER-SMITH

 On June 30, 2023, the
Company completed the acquisition of certain assets from Upsher Smith related to Zembrace SymTouch (sumatriptan injection) 3 mg
("Zembrace") and Tosymra (sumatriptan nasal spray) 10 mg ("Tosymra") products (such businesses collectively,
the "Business") and certain inventory related to the Business for an aggregate purchase price of approximately $ 26.5
million, including certain deferred payments and subject to customary adjustments (such transaction, the "USL Acquisition").

 On June 30, 2023, in
connection with the USL Acquisition, the Company and Upsher Smith entered into a Transition Services Agreement (the "Transition
Services Agreement"), pursuant to which Upsher Smith provided certain transition services to the Company for base fees equal
to $ 100,000 per month for the first six months, and $ 150,000 per months for the seventh through ninth months, plus additional monthly
fees for each service category totaling up to $ 150,000 per month. The Company has amended the transitional services agreement with
Upsher Smith so that Upsher Smith can continue to provide for the management of certain government rebates. Upsher Smith will be
reimbursed by the Company at cost for any rebates they pay on the Company's behalf.

 The Company has assumed
certain obligations of Upsher Smith, including the payment of quarterly royalty payments on annual net sales from the Business
in the U.S. as follows: for Tosymra, 4 % for net sales of $ 0 to $ 30 million, 7 % of net sales of $ 30 to $ 75 million; 9 % for net sales
of $ 75 to $ 100 million; 12 % for net sales of $ 100 to $ 150 million; and 15 % for net sales greater than $ 150 million. Royalty payments
with respect to Tosymra are payable until the expiration or termination of the product's Orange Book listed patent(s) with
respect to the United States or, outside the United States, the expiration of the last valid claim covering the product in the
relevant country of the territory.

 For Zembrace, royalty
payments on annual net sales in the U.S. are 3 % for net sales of $ 0 to $ 30 million, 6 % of net sales of $ 30 to $ 75 million; 12 %
for net sales of $ 75 to $ 100 million; 16 % for net sales of greater than $ 100 million. Such royalty payments are payable until July
19, 2025. Upon the entry of a generic version of the relevant product, the applicable royalty rates shall be reduced by 90 % percent
with respect to Zembrace, and by 66.7 % percent for Tosymra. Prior to Purchaser or a licensee filing an application for marketing
authorization for either of the products in a permitted country outside the U.S., the parties will negotiate in good faith the
royalty payment rates annual net sales tiers that will apply for such country, based on the market opportunity for the product
in such country. If the parties fail to agree, then the royalty payment rates and annual net sales tiers described above will apply.

 In addition, the Company
has assumed the obligation to pay an additional 3 % royalty on net sales of Tosymra, plus an additional 3 % if a patent containing
certain claims related to Tosymra issues in the U.S., for 15 years from the first commercial sale of Tosymra in the applicable
country or for as long as the manufacture, use or sale of Tosymra in such country is covered by a valid claim of a licensed patent,
and up to $ 15 million per Tosymra product on the achievement of sales milestones.

 As consideration for
acquisition of the Business and certain product-related inventories, the Company paid approximately $ 23.5 million in cash upfront.
In April 2024, the Company paid the additional deferred payment of $ 3.0 million in cash.

summarizes the components of the purchase consideration (in thousands):

 Purchase consideration

 Amount

 Closing cash consideration

 $

 22,174

 Inventory adjustment payment liability

 1,348

 Deferred payment liability

 3,000

 Purchase price to be allocated

 $

 26,522

 The USL Acquisition
was accounted for as a business combination using the acquisition method, in accordance with the provisions of ASC 805, Business
Combinations and ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The tangible and
intangible assets acquired were recorded at their estimated fair values on the acquisition date, and the difference between the
fair value of these assets and the purchase price has been recorded as goodwill.

 F- 25

 TONIX
 NOTES

represents the allocation of the purchase price to the assets acquired by the Company in the USL Acquisition recognized in the
Company's consolidated balance sheets (in thousands):

 Purchase price allocation

 Amount

 Inventory

 $

 13,700

 Prepaid expenses and other

 1,757

 Intangible assets, net

 10,100

 Goodwill

 Fair value of assets acquired

 $

 26,522

 The acquired inventory
consists of Upsher Smith's raw materials, semi-finished goods, and finished goods inventory as of the Closing date. The fair
value was determined based on the estimated selling price of the inventory, less the estimated total costs to complete, disposal
effort and holding costs.

 Intangible assets eligible
for recognition separate from goodwill were those that satisfied either the contractual or legal criterion or the separability
criterion in the accounting guidance. The identifiable intangible assets acquired and their estimated useful lives for amortization
are as follows (in thousands):

 Fair Value

 Useful Life
 (years)

 Developed technology - Tosymra

 $

 3,400

 Developed technology - Zembrace

 6,700

 Total

 $

 10,100

 The developed technology
intangible assets related to Zembrace and Tosymra includes the value associated with the acquired patents, customer relationships,
and trademarks and trade names associated with the technology. The developed technology intangible assets were valued as composite
assets under the premise that each asset is reliant on one another to generate cash flow, is not considered separable from the
technology, and are assumed to have similar useful lives. The composite intangible assets were valued using a multi-period excess
earnings method and are being amortized over their estimated useful lives using the straight-line method of amortization. The key
assumptions used in estimating the fair values of intangible assets include forecasted financial information, the weighted average
cost of capital, customer retention rates, and certain other assumptions.

 The fair values assigned
to the assets acquired are based on reasonable assumptions and estimates that market participants would use. Actual results may
differ from these estimates and assumptions.

 Due to a sustained
decline in revenues and continued delays in building out the sales team for its commercialized products, the Company also tested
its commercialized products asset group for recoverability during the second quarter of 2024. The Company determined that the carrying
value was not recoverable and therefore estimated the fair value of the asset group using a discounted cash flow analysis. The
Company recorded a non-cash impairment charge in the amount of $ 9.2 million, representing the excess carrying value over the fair
value, consisting of $ 6.2 million and $ 3.0 million for the Zembrace and Tosymra developed technology intangible assets, respectively,
which is reflected in asset impairment charges in the consolidated statements of operations for the year ended December 31, 2024.
As the carrying value of these intangibles is $ 0, there were no further impairment considerations during the year ended December
31, 2024.

 Supplemental Pro Forma Information

 The following unaudited
pro forma consolidated financial information reflects the results of operations of the Company for the year ended December 31, 2023 as if the USL Acquisition had occurred as of January 1, 2023, and gives effect to transactions that are directly
attributable to the acquisition, including additional amortization expense related to the fair value of intangible assets acquired
and an increase in Cost of Sales related to the acquisition-date fair value adjustment to inventory. On an unaudited pro forma
basis, consolidated Net Product Sales and Net Loss for the year ended December 31, 2023, would have been $ 15.4 million and $ 119.9
million, respectively. These amounts are based on financial information of the acquired business and are not necessarily indicative
of what the Company's operating results would have been had the acquisition taken place on the date presented, nor is it
indicative of the Company's future operating results. The net loss of USL Acquisition business is included in the Company's
consolidated results since the date of acquisition. The revenue and net loss of the USL Acquisition business reflected in the consolidated statements for the year ended December 31, 2024, is $ 10.1 million and $ 17.4 million, respectively.

 F- 26

 TONIX
 NOTES

 As described above, in connection with the USL Acquisition, the Company
and Upsher Smith entered into a Transition Services Agreement with Upsher Smith related to providing ongoing services associated with
the assets acquired, such as procuring and selling migraine therapy products, providing accounting, and billing services and collecting
accounts receivable and paying trade payables. Upsher Smith collected cash on behalf of Tonix for revenue generated by sales of the assets
acquired from June 30, 2023, through the transition period and the Seller is obligated to transfer cash generated by such sales to the
Company. On April 1, 2024, the Company amended the transitional services agreement with Upsher Smith so that Upsher Smith will only provide
for the management of certain government rebates. Upsher Smith will be reimbursed by the Company at cost for any rebates they pay on the
Company's behalf.

 NOTE 12 – ASSET PURCHASE AGREEMENT
WITH HEALION

 On February 2, 2023,
the Company entered into an asset purchase agreement (the "Healion Asset Purchase Agreement") with Healion Bio Inc.,
("Healion") pursuant to which the Company acquired all the pre-clinical infectious disease assets of Healion, including
its portfolio of next-generation antiviral technology assets. Healion's drug portfolio includes a class of broad-spectrum
small molecule oral antiviral drug candidates with a novel host-directed mechanism of action, including TNX-3900, formerly known
as HB-121. As consideration for entering into the Healion Asset Purchase Agreement, the Company paid $ 1.2 million to Healion. Because
the Healion intellectual property was acquired prior to U.S. Food and Drug Administration (FDA) approval, the cash consideration
totaling $ 1.2 million, was expensed as research and development costs since there is no alternative future use and the acquired
intellectual property does not constitute a business.

 NOTE 13 – SALE OF COMMON STOCK

 2024 At-the-Market
Offerings

 On July 30, 2024,
the Company entered into a Sales Agreement ( the "2024 Sales Agreement"), with AGP pursuant to which the Company may
issue and sell, from time to time, shares of the Company's common stock having an aggregate offering price of up to $ 250.0
million in ATM sales. AGP will act as sales agent and will be paid a 3 % commission on each sale under the 2024 Sales Agreement.
The Company's common stock will be sold at prevailing market prices at the time of the sale, and, as a result, prices will
vary. During the year ended December 31, 2024, the Company sold approximately 4.2 million shares of common stock under the Sales
Agreement, as defined below, for net proceeds of approximately $ 128.4 million. Subsequent to December 31, 2024, the Company has
sold 2.3 million shares of common stock under the Sales Agreement, for net proceeds of approximately $ 46.3 million.

 July 2024 Financing

 On July 9, 2024, the
Company entered into a securities purchase agreement with certain institutional and retail investors, pursuant to which the Company
sold 33,936 shares of common stock and pre-funded warrants to purchase up to 37,032 shares of common stock. The offering price
per share of common stock was $ 57.00, and the offering price per share of pre-funded warrant was $ 56.99.

 The offering closed
on July 10, 2024. The Company incurred offering expenses of approximately $ 0.5 million, including placement agent fees of approximately
$ 0.3 million. The Company received net proceeds of approximately $ 3.5 million, after deducting the underwriting discount and other
offering expenses.

 F- 27

 TONIX
 NOTES

 June
2024 Financings

 On
June 12, 2024, the Company entered into a securities purchase agreement with certain investors, pursuant to which the Company
sold 11,995 shares of common stock and pre-funded warrants to purchase up to 25,682 shares of common stock. The offering price
per share of common stock was $ 106.50, and the offering price per share of pre-funded warrant was $ 106.40.

 The
offering closed on June 13, 2024. The Company incurred offering expenses of approximately $ 0.6 million, including placement agent
fees of approximately $ 0.3 million. The Company received net proceeds of approximately $ 3.4 million, after deducting the underwriting
discount and other offering expenses.

 On
June 27, 2024, the Company entered into a securities purchase agreement with certain institutional and retail investors, pursuant
to which the Company sold 28,339 shares of common stock and pre-funded warrants to purchase up to 42,282 shares of common stock.
The offering price per share of common stock was $ 57.00, and the offering price per share of pre-funded warrant was $ 56.99.

 The
offering closed on June 28, 2024. The Company incurred offering expenses of approximately $ 0.6 million, including placement agent
fees of approximately $ 0.3 million. The Company received net proceeds of approximately $ 3.4 million, after deducting the underwriting
discount and other offering expenses.

 March
2024 Financing

 On
March 28, 2024, the Company entered into an agreement to sell 3,365 shares of common stock, pre-funded warrants to purchase up
to 1,219 shares of common stock, and accompanying Series E warrants to purchase up to 4,584 shares of common stock with an exercise
price of $ 1,056.00 per share and expiring five and a half years from date of issuance in a public offering, which closed on April
1, 2024. The offering price per share of common stock was $ 960.00, and the offering price per share of pre-funded warrants was
$ 959.68.

 The
Company incurred offering expenses of approximately $ 0.5 million, including placement agent fees of approximately $ 0.3 million.
The Company received net proceeds of approximately $ 3.9 million, after deducting the underwriting discount and other offering
expenses.

with the closing of the financing on April 1, 2024, the Company entered into warrant amendments (collectively, the "Warrant
Amendments") with certain holders of its common warrants (referred to herein as the "Existing Warrants"). The
Company agreed to amend the exercise price of each Existing Warrant to $ 1,056.00 upon approval by the Company's stockholders
of a proposal to allow the Existing Warrants to become exercisable in accordance with Nasdaq Listing Rule 5635 or, if stockholder
approval is not obtained by October 1, 2024, the Company agreed to automatically amend the exercise price of the Existing Warrants
to the Minimum Price (as defined in Nasdaq Listing Rule 5635(d)) of the Company's common stock on October 1, 2024, if and
only if the Minimum Price is below the then current exercise price. Upon stockholder approval, the termination date for the warrants
issued August 2023 (the "August Warrants") to purchase up to an aggregate of 2,172 shares was amended to April 1,
2029; the termination date for Series A Warrants to purchase up to an aggregate of approximately 2,782 shares is April 1, 2029;
the termination date for Series B Warrants to purchase up to an aggregate of approximately 2,782 shares is April 1, 2025; the
termination date for Series C Warrants to purchase up to an aggregate of approximately 10,884 shares is the earlier of (i) April
1, 2026 and (ii) 10 trading days following notice by the Company to the Series C Warrant holders of the Company's public
announcement of the FDA's acknowledgement and acceptance of the Company's NDA relating to TNX-102 SL in patients with
Fibromyalgia; the termination date for Series D Warrants to purchase up to an aggregate of approximately 10,884 shares is April
1, 2029. The other terms of the Existing Warrants remained unchanged.

 The
Company evaluated the Warrant Amendments as of April 1, 2024, and determined that the potential adjustment to the exercise price
that is contingent on stockholder approval precluded the Existing Warrants from being indexed to the Company's own stock,
and as a result, did not meet the criteria for equity classification under ASC 815-40. The Company accounted for the incremental
fair value of the Warrant Amendments of $ 3.0 million as a direct and incremental cost of the March 2024 financing as an offset
to the proceeds received. As all of the Existing Warrants were equity-classified prior to the Warrant Amendments, the net impact
to the consolidated statement of stockholders' equity was zero. The Company then reclassified the Existing Warrants
from equity to liabilities at post-modification fair value on April 1, 2024. On May 22, 2024, the date the Company's stockholders
approved the proposal to fix the exercise prices at $ 1,056.00 per share, the Existing Warrants were adjusted to fair value and
reclassified back to equity.

 F- 28

 TONIX
 NOTES

 December

 On
December 20, 2023, the Company entered into a securities purchase agreement (the "Purchase Agreement") with certain
institutional investors, pursuant to which the Company sold and issued (i) 7,920 shares of the Company's common stock, (ii)
pre-funded warrants (the "Pre-Funded Warrants") to purchase up to 8,973 shares of common stock and (iii) Series C
warrants to purchase up to 25,338 shares of common stock (the "Series C Warrants"), and (iv) Series D warrants to
purchase up to 25,338 shares of common stock (the "Series D Warrants" and, together with the Series C Warrants, the
"Common Warrants"). The securities sold in the offering were sold in fixed combinations as units. The offering price
per share of common stock and accompanying Common Warrants was $ 1,776.00, and the offering price per Pre-Funded Warrant and accompanying
Common Warrants was $ 1,775.68. The offering closed on December 22, 2023, generating gross proceeds of approximately $ 30.0 million,
before deducting offering expenses of $ 2.3 million payable by the Company. At the closing of the offering, 2,034 Pre-Funded Warrants
were immediately exercised into shares of common stock for nominal proceeds.

 The
Pre-Funded Warrants have an exercise price of $ 0.32 per share, were immediately exercisable subject to certain ownership limitations,
and can be exercised at any time until exercised in full. The Series C Warrants have an exercise price of $ 1,776.00 per share, and
were exercisable on the later of approval by the Company's stockholders of (i) a proposal to approve the filing of an amendment
to the Company's Articles of Incorporation, increasing the number of authorized shares of common stock from 160,000,000
to 1,000,000,000 and (ii) a proposal to allow the Warrants to become exercisable in accordance with Nasdaq Listing Rule 5635 (the
later of such events, the "Approval Date") and initially expired on the later of (a) 10 trading days following the
Approval Date and (b) the earlier of (x) the two year anniversary of the Approval Date and (y) 10 trading days following the public
announcement of the U.S. Food and Drug Administration's ("FDA") acknowledgement and acceptance of the New Drug
Application ("NDA") relating to the Company's TNX-102 SL product candidate in patients with fibromyalgia. The
Series D Warrants have an exercise price of $ 2,720.00 per share and were exercisable beginning on the Approval Date through the five-year
anniversary of the Approval Date.

 Upon
the closing of the offering, the Company determined that certain of the Common Warrants did not meet the criteria for equity
classification due to the lack of sufficient authorized and unissued shares to settle the instruments. The Company has adopted a
sequencing approach under ASC 815-40, Derivatives and Hedging - Contracts in Entity's Own Equity to determine the
classification of its contracts at issuance and at each subsequent reporting date, whereby shares are allocated based on the
earliest issuance date of potentially dilutive instruments, with the earliest issuance date receiving the first allocation of
shares. In the event of identical issuance dates, shares are then allocated beginning with instruments with the latest maturity date
first. Pursuant to this sequencing approach, the Company determined that the authorized shares were sufficient to settle all
remaining Pre-Funded Warrants and 15,917 Series
D Warrants and were therefore classified in equity. The remaining 9,422 Series
D Warrants and the Series C Warrants associated with the deficit shares were initially classified as liabilities at fair value and
presented within non-current liabilities on the consolidated balance sheet as of December 31, 2023.

 The
$ 30.0 million in gross proceeds received by the Company were first allocated to the Series C Warrants and the liability-classified
Series D Warrants at their respective fair values, and the residual proceeds were allocated between the shares of common stock,
the Pre-Funded Warrants, and the equity-classified Series D Warrants on a relative fair value basis. The issuance costs were allocated
between the equity and liability-classified instruments on a relative fair value basis, resulting in issuance costs of $ 1.4 million
recognized as a discount to the equity-classified instruments, and $ 0.9 million allocated to the liability-classified instruments
and immediately expensed within Selling, general and administrative expense on the consolidated statements of operations.

 On
January 25, 2024, the date the Company's stockholders approved the proposal to file an amendment to the Company's
Articles of Incorporation to increase the number of authorized shares of common stock from 160,000,000 to 1,000,000,000, the liability-classified
Series D Warrants and the Series C Warrants were adjusted to fair value and reclassified to equity.

 F- 29

 TONIX
 NOTES

 September

 On
September 28, 2023, the Company sold 1,266 shares of common stock; pre-funded warrants to purchase up to 1,549 shares of common
stock, and accompanying Series A warrants to purchase up to 2,813 shares of common stock with an exercise price of $ 1,600.00 per
share and expiring five years from date of issuance, and Series B warrants to purchase up to 2,813 shares of common stock with
an exercise price of $ 1,600.00 per share and expiring one year from date of issuance in a public offering, which closed on October
3, 2023. The offering price per share of common stock and accompanying warrants was $ 1,600.00, and the offering price per share
of pre-funded warrant and accompanying warrants was $ 1,599.68.

 The
Company incurred offering expenses of approximately $ 0.5 million, including placement agent fees of approximately $ 0.3 million.
The Company received net proceeds of approximately $ 4.0 million, after deducting the underwriting discount and other offering
expenses.

 July

 On
July 27, 2023, the Company sold 791 shares of common stock; pre-funded warrants to purchase up to 1,399 shares of common stock
and accompanying common warrants to purchase up to 2,188 shares of common stock with an exercise price of $ 3,200.00 per share
in a public offering that closed on August 1, 2023. The offering price per share of common stock and accompanying common warrant
was $ 3,200.00, and the offering price per share of pre-funded warrant and accompanying common warrant was $ 3,199.68.

 The
Company incurred offering expenses of approximately $ 0.7 million, including placement agent fees of approximately $ 0.5 million.
The Company received net proceeds of approximately $ 6.3 million, after deducting the underwriting discount and other offering
expenses.

 2020 At-the-Market Offerings

 On April 8, 2020,
the Company entered into a sales agreement with AGP pursuant to which the Company may issue and sell shares of its common stock having
an aggregate offering price of up to $ 320.0 million in at-the-market offerings ("ATM") sales at prevailing market prices at
the time of the sale, and, as a result, prices will vary. AGP receives a 3 % commission on each ATM sale under the Sales Agreement.

 During the year ended December
31, 2023, the Company sold approximately 322 shares of common stock under the Sales Agreement, for net proceeds of approximately $ 3.0
million.

 Stock
repurchases

 In
September 2024, the Board of Directors approved a 2024 share repurchase program pursuant to which the Company
may repurchase up to $ 10.0
million in value of its outstanding common stock from time to time on the open market and in privately negotiated transactions
subject to market conditions, share price and other factors. No repurchases occurred during the year ended December 31, 2024.
Subsequent to December 31, 2024, the Company repurchased 250,000 shares of common stock outstanding under the 2024 share repurchase program at prices ranging from $ 9.98
to $ 14.33
per share for a gross aggregate cost of approximately $ 3.0
million.

the quarter ended March 31, 2023, the Company repurchased 786 of its shares of common stock outstanding under its 2022 share repurchase
program for $ 12.5 million at prices ranging from $ 8,800.00 to $ 27,552.00 per share for a gross aggregate cost of approximately
$ 12.5 million.

 In
January 2023, the Board of Directors approved a 2023 share repurchase program pursuant to which the Company may repurchase up
to $ 12.5 million in value of its outstanding common stock from time to time on the open market and in privately negotiated transactions
subject to market conditions, share price and other factors. During the quarter ended March 31, 2023, the Company repurchased
 50 of its shares of common stock outstanding under the new 2023 share repurchase program at $ 22,784.00 per share for a gross aggregate
cost of $ 1.1 million.

 The
timing and amount of any shares repurchased will be determined based on the Company's evaluation of market conditions
and other factors and the New Share Repurchase Program may be discontinued or suspended at any time. Repurchases will
be made in accordance with the rules and regulations promulgated by the Securities and Exchange Commission and certain other legal
requirements to which the Company may be subject. Repurchases may be made, in part, under a Rule 10b5-1 plan, which
allows stock repurchases when the Company might otherwise be precluded from doing so.

 NOTE
14 – STOCK-BASED COMPENSATION

 On
May 1, 2020, the Company's stockholders approved the Tonix Pharmaceuticals Holding Corp. Amended and Restated 2020 Stock
Incentive Plan ("Amended and Restated 2020 Plan").

 F- 30

 TONIX
 NOTES

 Under
the terms of the Amended and Restated 2020 Plan, the Company may issue (1) stock options (incentive and nonstatutory), (2) restricted
stock, (3) stock appreciation rights ("SARs"), (4) RSUs, (5) other stock-based awards, and (6) cash-based awards.
The Amended and Restated 2020 Plan initially provided for the issuance of up to 50,000 shares of common stock, which amount will
be increased to the extent that awards granted under the Plans are forfeited, expire or are settled for cash (except as otherwise
provided in the Amended and Restated 2020 Plan). In addition, the Amended and Restated 2020 Plan contains an "evergreen
provision" providing for an annual increase in the number of shares of our common stock available for issuance under the
Amended and Restated 2020 Plan on January 1 of each year for a period of ten years, commencing on January 1, 2021 and ending on
(and including) January 1, 2030, in an amount equal to the difference between (x) twenty percent ( 20 %) of the total number of
shares of common stock outstanding on December 31st of the preceding calendar year, and (y) the total number of shares of common
stock reserved under the Amended and Restated 2020 Plan on December 31 st of such preceding calendar year (including
shares subject to outstanding awards, issued pursuant to awards or available for future awards). The Board of Directors determines
the exercise price, vesting and expiration period of the grants under the Amended and Restated 2020 Plan. However, the exercise
price of an incentive stock option may not be less than 110 % of fair value of the common stock at the date of the grant for a
10% or more shareholder and 100 % of fair value for a grantee who is not a 10% shareholder. The fair value of the common stock
is determined based on quoted market price or in absence of such quoted market price, by the Board of Directors in good faith.
Additionally, the expiration period of grants under the Amended and Restated 2020 Plan may not be more than ten years. As of December
31, 2024, no options were available for future grants under the Amended and Restated 2020 Plan.

 General

 A
summary of the stock option activity and related information for the Plans for the year ended December 31, 2024 is as follows:

 Shares

 Weighted-

 Average
 Exercise Price

 Weighted-Average
 Remaining Contractual Term

 Aggregate
 Intrinsic Value

 at December 31, 2022

 $

 1,069,056

 8.70

 $

 —

 Grants

 $

 14,763

 —

 —

 Exercised

 —

 —

 Forfeitures
 or expirations

 ( 35

)

 358,117

 at December 31, 2023

 $

 276,359,750

 8.75

 $

 —

 Grants

 3,461

 $

 1,042

 —

 $

 —

 Exercised

 —

 —

 Forfeitures
 or expirations

 ( 370

)

 $

 288,965,154

 at December 31, 2024

 3,865

 $

 27,540,609

 8.74

 $

 —

 Exercisable
 at December 31, 2024

 $

 101,743,715

 7.27

 $

 —

 The
weighted average fair value of options granted during the year ended December 31, 2024, and December 31, 2023 was $ 868.00 per
share and $ 12,768.00, respectively.

 The
Company measures the fair value of stock options on the date of grant, based on the Black Scholes option pricing model using certain
assumptions discussed below, and the closing market price of the Company's common stock on the date of the grant. The fair
value of the award is measured on the grant date. One-third of most stock options granted pursuant to the Plans vest 12 months
from the date of grant and 1/36th each month thereafter for 24 months and expire ten years from the date of grant. In addition,
the Company issues options to directors which vest over a one-year period. The Company also issues premium options to executive
officers which have an exercise price greater than the grant date fair value and has issued performance-based options which vest
when target parameters are met or probable of being met, subject in each case to a one-year minimum service period prior to vesting.
Stock-based compensation expense related to awards is amortized over the applicable service period using the straight-line method.

 F- 31

 TONIX
 NOTES

 The
assumptions used in the valuation of stock options granted during the years ended December 31, 2024 and 2023 were as follows:

 Year
 Ended
 December 31, 2024

 Year
 Ended
 December 31, 2023

 Risk-free
 interest rate

 3.58 %
 to 5.33

 %

 3.42 %
 to 4.35

 %

 Expected
 term of option

 5.25
 to 10 years

 5.0
 to 10 years

 Expected
 stock price volatility

 111.89 %
 - 140.42

 %

 122.19 %
 - 142.72

 %

 Expected
 dividend yield

 0.0

 0.0

 The
risk-free interest rate is based on the yield of Daily U.S. Treasury Yield Curve Rates with terms equal to the expected term of
the options as of the grant date. The expected term of options is determined using the simplified method, as provided in an SEC
Staff Accounting Bulletin, and the expected stock price volatility is based on the Company' historical stock price volatility.

 Stock-based
compensation expense relating to options granted of $ 4.8 million, of which $ 3.4 million and $ 1.4 million, related to General and
Administration and Research and Development, respectively was recognized for the year ended December 31, 2024. Stock-based compensation
expense relating to options granted of $ 9.3 million, of which $ 6.4 million and $ 2.9 million, related to General and Administration
and Research and Development, respectively was recognized for the year ended December 31, 2023.

 As
of December 31, 2024, the Company had approximately $ 3.4 million of total unrecognized compensation cost related to non-vested
awards granted under the Plans, which the Company expects to recognize over a weighted average period of 1.57 years.

 Employee
Stock Purchase Plans

 On
May 6, 2022, the Company's stockholders approved the Tonix Pharmaceuticals Holdings Corp. 2022 Employee Stock Purchase
Plan. (the "2022 ESPP"), which was replaced by the Tonix Pharmaceuticals Holdings Corp. 2023 Employee Stock Purchase
Plan (the "2023 ESPP", and together with the 2022 ESPP, the "ESPP Plans"), which was approved by the Company's
stockholders on May 5, 2023.

 The
2023 ESPP allows eligible employees to purchase up to an aggregate of 800,000 shares of the Company's common stock.
Under the 2023 ESPP, on the first day of each offering period, each eligible employee for that offering period has the option
to enroll for that offering period, which allows the eligible employees to purchase shares of the Company's common stock
at the end of the offering period. Each offering period under the 2023 ESPP is for six months, which can be modified from time-to-time.
Subject to limitations, each participant will be permitted to purchase a number of shares determined by dividing the employee's
accumulated payroll deductions for the offering period by the applicable purchase price, which is equal to 85 percent of
the fair market value of our common stock at the beginning or end of each offering period, whichever is less. A participant must
designate in his or her enrollment package the percentage (if any) of compensation to be deducted during that offering period
for the purchase of stock under the 2023 ESPP, subject to the statutory limit under the Code. As of December 31, 2024, 159 shares
were available for future sales under the 2023 ESPP.

 The
ESPP Plans are considered compensatory plans with the related compensation cost expensed over the six-month offering period. For
the year ended December 31, 2024 and 2023, $ 27,000 and $ 34,000, respectively, was expensed. In January 2023, 5 shares that were
purchased as of December 31, 2022, under the 2022 ESPP, were issued. Accordingly, during the first quarter of 2023, approximately
$ 29,000 of employee payroll deductions accumulated at December 31, 2022, related to acquiring such shares, was transferred from
accrued expenses to additional paid in capital. The remaining $ 14,000 was returned to the employees. As of December 31, 2023,
approximately $ 44,000 of employee payroll deductions had accumulated and had been recorded in accrued expenses. In January
2024, 21 shares that were purchased as of December 31, 2023, under the 2022 ESPP, were issued. Accordingly, during the first quarter
of 2024, approximately $ 24,000 of employee payroll deductions accumulated at December 31, 2023, related to acquiring such shares,
was transferred from accrued expenses to additional paid in capital. The remaining $ 20,000 was returned to the employees. As of
June 30, 2024, approximately $ 33,000 of employee payroll deductions had accumulated and had been recorded in accrued expenses. In
July 2024, 70 shares that were purchased as of June 30, 2024, under the 2022 ESPP, were issued. Accordingly, during the third
quarter of 2024, approximately $ 4,000 of employee payroll deductions accumulated at June 30, 2024, related to acquiring such shares,
was transferred from accrued expenses to additional paid in capital. The remaining $ 29,000 was returned to the employees.

 F- 32

 TONIX

 NOTES

 NOTE
15 – STOCK WARRANTS

 The
following table summarizes information with respect to outstanding warrants to purchase common stock of the Company at December
31, 2024:

 Exercise

 Number

 Expiration

 Price

 Date

 $

 4,585

 April
 2029

 $

 2,782

 April
 2029

 $

 2,782

 April
 2025

 $

 2,172

 April
 2029

 $

 10,884

 February
 2025

 $

 10,884

 April
 2029

 $

 1,600.00

 October
 2028

 $

 1,776.00

 5,758

 January
 2025

 $

 2,720.00

 5,758

 December
 2028

 $

 3,200.00

 August
 2028

 $

 364,800.00

 February
 2025

 45,664

the year ended December 31, 2024, 113,155 prefunded common warrants were exercised.

 For
the year ended December 31, 2024, 36 and 1 warrants with an exercise price of $ 1,600.00 and $ 320,000.00, respectively, expired.

 For
the year ended December 31, 2024, 8,700 and 8,700 warrants with an exercise price of $ 1,776.00 and $ 2,720.00, respectively, were
returned and cancelled.

 Subsequent
to December 31, 2024, 10,884, 5,758
(as the Company received FDA acceptance of our NDA filing), and 1
warrants with an exercise price of $ 1,056.00, $ 1,776.00
and $ 364,800.00,
respectively, expired.

with the closing of the financing on April 1, 2024, the Company entered into the Warrant Amendments (as defined in Note 13) with
certain holders of its warrants to purchase common stock, agreeing to amend the exercise price of each Existing Warrant to $ 1,056.00
upon approval by the Company's stockholders of a proposal to allow the warrants to become exercisable in accordance with
Nasdaq Listing Rule 5635 or, if stockholder approval is not obtained by October 1, 2024, the exercise price would be automatically
amended to the Minimum Price (as defined in Nasdaq Listing Rule 5635(d)) of the Company's common stock on October 1, 2024,
if and only if the Minimum Price is below the then current exercise price. The Company's stockholders approved the proposal
to amend the exercise prices of the Existing Warrants to $ 1,056.00 per share and extend the termination dates at the annual meeting
of the Company's stockholders held on May 22, 2024. As such, the table above reflects the modified terms of the Existing
Warrants in effect as of December 31, 2024. See Note 13 for further details.

 No
common warrants were exercised during the year ended December 31, 2023.

 For
the year ended December 31, 2023, 1 warrant with an exercise price of $ 22,400,000.00 expired.

 NOTE
16 – LEASES

 The
Company has various operating lease agreements, which are primarily for office space. These agreements frequently include one
or more renewal options and require the Company to pay for utilities, taxes, insurance and maintenance expense. No lease agreement
imposes a restriction on the Company's ability to engage in financing transactions or enter into further lease agreements.
At December 31, 2024, the Company has right-of-use assets of $ 0.6 million and a total lease liability for operating leases of
$ 0.6 million of which $ 0.3 million is included in long-term lease liabilities and $ 0.3 million is included in current lease liabilities.

 F- 33

 TONIX
 NOTES

 At
December 31, 2024, future minimum lease payments for operating leases with non-cancelable terms of more than one year were as
follows (in thousands):

 Year Ending December 31,

 2025

 $

 2026

 2027

 2028

 2029

 Included
 interest

 ( 56

)

 $

 No
new leases or amendments were entered into during the year ended December 31, 2024. During the year ended December 31, 2023, the
Company entered into new operating leases and lease amendments, resulting in the Company recognizing an additional operating lease
liability of approximately $ 898,000 based on the present value of the minimum rental payments. The Company also recognized a corresponding
increase to ROU assets of approximately $ 898,000, which represents a non-cash operating activity.

 Other
information related to leases is as follows:

lease expense was $ 0.3 and $ 0.6 million for the years ended December 31, 2024, and 2023, respectively.

 Other
information related to leases is as follows:

 Cash
 paid for amounts included in the measurement of lease liabilities:

 Year
 Ended
 December 31, 2024

 Year
 Ended
 December 31, 2023

 cash flow from operating leases (in thousands)

 $

 $

 Weighted
 Average Remaining Lease Term

 leases

 3.10
 years

 3.78
 years

 Weighted
 Average Discount Rate

 leases

 4.92

 %

 4.53

 %

 NOTE
17 – COMMITMENTS

 Contractual
agreements

 The
Company has entered into contracts with various contract research organizations with outstanding commitments aggregating approximately
$ 12.7 million at December 31, 2024 for future work to be performed.

 F- 34

 TONIX
 NOTES

 Defined
contribution plan

 The
Company has a qualified defined contribution plan (the "401(k) Plan") pursuant to Section 401(k) of the Code, whereby
all eligible employees may participate. Participants may elect to defer a percentage of their annual pretax compensation
to the 401(k) Plan, subject to defined limitations. The Company is required to make contributions to the 401(k) Plan equal to
 100 percent of each participant's pretax contributions of up to six percent of his or her eligible compensation, and the
Company is also required to make a contribution equal to three percent of each participant's salary, on an annual basis,
subject to limitations under the Code. The Company charged operations $ 1.2 million and $ 1.3 million for the years ended December
31, 2024 and 2023, respectively, for contributions under the 401(k) Plan.

 NOTE
18 – INCOME TAXES

 Components of the net loss consist of the following
(in thousands):

 2024

 2023

 Foreign

 $

 ( 49,444

)

 $

 ( 98,204

)

 Domestic

 ( 80,592

)

 ( 18,454

)

 Total

 $

)

 $

)

 In 2024, the foreign losses
are primarily comprised of $ 49.4
million related to the Irish operations and $0.09
million related to Canada operations of Tonix International Holding. In 2023, the foreign losses are primarily comprised
of the $ 98.4
million related to the Irish operations and $0.23
million related to the Canadian operations of Tonix International Holding.

 A reconciliation of the effect
of applying the federal statutory rate to the net loss and the effective income tax rate used to calculate the Company's income
tax provision is as follows:

 Year Ended December 31,

 2024

 2023

 Statutory federal income tax

 ( 21.0

)%

 ( 21.0

)%

 Change in valuation allowance

 14.4

 %

 11.7

 %

 Permanent differences

 ( 1.0

)%

 0.2

 %

 Foreign loss not subject to income tax

 3.2

 %

 7.2

 %

 Attribute reduction from control change

 4.3

 %

 0.9

 %

 Other

 0.1

 %

 1.0

 %

 Income Tax Provision

 0.0

 %

 0.0

 %

 Deferred tax assets (liabilities)
and related valuation allowance as of December 31, 2024 and 2023 were as follows (in thousands):

 2024

 2023

 Deferred tax assets/(liabilities):

 Net operating loss carryforward

 $

 39,255

 $

 32,997

 Stock-based compensation

 9,170

 10,276

 Fixed assets

 9,617

 —

 Other

 4,829

 2,211

 Total deferred assets

 62,871

 45,484

 Valuation allowance

 ( 62,871

)

 ( 45,484

)

 Net deferred tax assets

 $

 —

 $

 —

 The Company has incurred
research and development ("R&D") expenses, a portion of which qualifies for tax credits. The Company conducted an R&D credit
study to quantify the amount of credits and has claimed an R&D credit on its 2014-2017 tax returns. A portion of these R&D credit
carryforwards are subject to annual limitations in their use in accordance with Internal Revenue Service Code ("IRC") section
383. The R&D credit carryforwards at December 31, 2023 have been reduced to $ 0.0 million to reflect IRC section 383 ownership changes
through December 31, 2024 and the resulting inability to utilize a portion of the R&D credit prior to its expiration.

 At December 31, 2024,
the Company has $ 314.0 million of Ireland NOL carryforwards that do not expire. As of December 31, 2024, the Company's Federal NOL and
state net operating losses are fully limited in accordance with IRC section 382. As such, there are no NOL carryforwards available as
of December 31, 2024.

 Management assesses the
available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred
tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three-year period
ended December 31, 2024. Such objective evidence limits the ability to consider other subjective evidence such as our projections for
future growth. As such, the Company has determined that it is not more likely than not that the deferred tax assets will be realized
and accordingly, has provided a full valuation allowance against its gross deferred tax assets. The increase/(decrease) in the valuation
allowance for the years ended December 31, 2024 and 2023 were $ 17.4
 million, and $ 14.5
 million respectively.

 The Company recognizes interest accrued related to unrecognized tax benefits and penalties as
income tax expense. However, as of December 31, 2024 there are no unrecognized tax benefits recorded. The Company is subject to taxation
in the United States and various states and foreign jurisdictions. As of December 31, 2024, the Company's tax returns remain open and
subject to examination by the tax authorities for the tax years 2021 and after.

 NOTE
19 – SUBSEQUENT EVENTS

 On
February 3, 2025, the Company paid $ 9.6 million as a result of a pay-off of its outstanding loan facility. The pay-off amount paid by the Company in
connection with the termination of the Loan Agreement was pursuant to a pay-off letter and includes a prepayment fee of $ 1.0 million
in accordance with the terms and provisions of the Loan Agreement.

 On
February 20, 2025, the Company received a letter from The NASDAQ Stock Market LLC stating that because the Company's shares
had a closing bid price at or above $ 1.00 per share for a minimum of 10 consecutive business days, the Company's stock had
regained compliance with the minimum bid price requirement of $ 1.00 per share for continued listing on the NASDAQ Capital Market,
as set forth in NASDAQ Listing Rule 5550(a)(2), and that the matter is now closed.

 On February 25, 2025, the
Company granted options to purchase an aggregate of 449,708
 shares of the Company's common stock to employees with an exercise price of $ 8.05.
Additionally, the Company granted options to purchase 221,558
shares
of the Company's common stock to certain employees with an exercise price of $ 10.06.

 Subsequent to December 31, 2024, the Company has sold 2.3 million shares
of common stock under the Sales Agreement, for net proceeds of approximately $ 46.3 million.

 Subsequent to December 31, 2024, the Company repurchased 250,000 of its
shares of common stock outstanding under the 2024 share repurchase program at prices ranging from $ 9.98 to $ 14.33 per share for a gross
aggregate cost of approximately $ 3.0 million.

 F- 35

 ITEM
9 – CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES

 None.

 ITEM
9A – CONTROLS AND PROCEDURES

 Management's
evaluation of disclosure controls and procedures

 Our
management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of
our disclosure controls and procedures pursuant to Rule 13a-15 under the Exchange Act. In designing and evaluating the disclosure
controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can
provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls
and procedures must reflect the fact that there are resource constraints, and that management is required to apply its judgment
in evaluating the benefits of possible controls and procedures relative to their costs.

 Based
on management's evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls
and procedures are designed at a reasonable assurance level and are effective to provide reasonable assurance that information
we are required to disclose 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 that such information is accumulated and communicated to our management,
including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required
disclosure.

 Management's
report on internal control over financial reporting.

 Our
management is responsible for establishing and maintaining adequate internal control over financial reporting for our company.
Internal control over financial reporting is defined in Rule 13a-15(f) and 15d-15(f) promulgated under the Exchange
Act, as a process designed by, or under the supervision of, a company's principal executive and principal financial officer
and effected by the our board of directors, management and other personnel, to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles and includes those policies and procedures that:

 (1)

 pertain
 to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions
 of the assets of the company;

 (2)

 provide
 reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance
 with generally accepted accounting principles, and that receipts and expenditures of the company are being made in accordance
 with authorizations of management and directors of the company; and

 (3)

 provide
 reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company's
 assets that could have a material effect on the financial statements.

of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of
any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes
in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Management recognizes that any
controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives
and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible enhancements to controls
and procedures.

 We
conducted an evaluation of the effectiveness of internal control over financial reporting based on the framework in Internal Control
— Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this
evaluation, our principal executive officer and principal financial officer conclude that, at December 31, 2024, our internal
control over financial reporting was effective.

 This
annual report does not include an attestation report by EisnerAmper LLP, our independent registered public accounting firm regarding
internal control over financial reporting. As a smaller reporting company, our management's report was not subject to attestation
by our registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permit us to provide
only management's report in this annual report.

 Previously
Reported Material Weakness in Internal Control Over Financial Reporting

 In
the 2024 Form 10-Q, filed with the SEC on August 16, 2024, management concluded that our internal control over financial reporting
was not effective as of June 30, 2024. In the evaluation, we did not maintain an effective control environment over the internal
control activities to ensure the proper recognition and measurement related to the accounting for complex and non-routine transactions.
We did not have adequate supervision and review controls over the complex accounting related to the non-cash impairment of intangibles,
non-cash equity transactions and the recoverability of inventory. As a result, management review of asset impairment calculations
did not identify errors in the associated cash flow projections which led to an error in the conclusion of the initial impairment
assessment. We also did not properly assess the realizability of inventory based upon the projections utilized and our assessment
of an amendment to existing warrants that were reclassified into equity in the same period did not include a quantitative evaluation
of the potential materiality of revaluation adjustments.

 In connection with the material weakness as it relates to the accounting
for complex and non-routine transactions related to the non-cash impairment of intangibles, non-cash equity transactions and the recoverability
of inventory, management re-evaluated the effectiveness of such controls as of December 31, 2024, and concluded that such controls were
remediated and operating effectively as of December 31, 2024. The remediation of the material weakness over the complex accounting related
to the non-cash impairment of intangibles, non-cash equity transactions was as a result of no material balances related to these financial
statement captions as of December 31, 2024, and consequently there was no risk of material misstatements for these financial statement
captions. While there were no material balances for the intangible assets as of December 31, 2024 and no non-cash equity transactions
for the period July 1, 2024 to December 31, 2024, management's testing of internal controls over financial reporting as of December
31, 2024 included controls that were similar in nature to the controls that were not operating effectively as of June 30, 2024
and noted such controls were operating effectively as of December 31, 2024.

 In relation to the realizability of inventory, the remediation of this
material weakness constituted implementing new controls with expanded review processes including but not limited to the assessment of
additional data points for the assessment and additional personnel included to evaluate our ability to realize inventory balances.

 Changes
in internal control over financial reporting.

 Other
than as described above, there were no changes in our internal control over financial reporting that occurred during the year
ended December 31, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over
financial reporting.

 ITEM
9B – OTHER INFORMATION

 During the fiscal quarter ended December 31, 2024, none of our officers
or directors, as those terms are defined in Rule 16a-1(f), adopted or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule
10b5-1 trading arrangement," as those terms are defined in Item 408 of Regulation S-K.

 ITEM
9C – DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

 Not
Applicable.

 PART
III

 ITEM
10 – DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

 The
Board of Directors elects our executive officers annually. A majority vote of the directors who are in office is required to fill
vacancies. Each director shall be elected for the term of one year and until his successor is elected and qualified or until his
earlier resignation or removal. Our directors and executive officers are as follows:

 NAME

 AGE

 CURRENT
 POSITION

 Seth
 Lederman

 President,
 CEO and Chairman of the Board of Directors

 Richard
 Bagger

 Margaret
 Smith Bell

 David
 Grange

 Adeoye
 Olukotun

 Newcomb
 Stillwell

 Carolyn
 Taylor

 James
 Treco

 Lead

 Jessica
 Morris

 Chief
 Operating Officer

 Bradley
 Saenger

 Chief
 Financial Officer and Treasurer

 Gregory
 Sullivan

 Chief
 Medical Officer and Secretary

 Siobhan
 Fogarty

 Chief
 Technical Officer

 The
following information with respect to the principal occupation or employment of each nominee for director, the principal business
of the corporation or other organization in which such occupation or employment is carried on, and such nominee's business
experience during the past five years, as well as the specific experiences, qualifications, attributes and skills that have led
the Board to determine that such Board members should serve on our Board, has been furnished to the Company by the respective
director nominees:

 Seth
Lederman, MD became our President, Chief Executive Officer, Chairman of the Board and a Director in October 2011. Dr.
Lederman founded Tonix Pharmaceuticals, Inc., a wholly-owned subsidiary of us ("Tonix Sub") in 2007 and has acted as its
Chairman of the Board of Directors since its inception and as President since 2010. Dr. Lederman is an inventor on key patents and
patent applications underlying our programs including: TNX-102 SL's eutectic composition; and TNX-102 SL's
pharmacokinetic profile and related therapeutic properties. Dr. Lederman served as an Associate Professor at Columbia University,
between 1996 and 2017. As an Assistant Professor at Columbia, Dr. Lederman discovered and characterized the CD40-ligand, or CD154
and invented therapeutic candidates to treat autoimmune diseases and transplant rejection. TNX-1500 is a mAb directed against CD154
invented by Dr. Lederman. Dr. Lederman was a Manager of L&L Technologies LLC, or L&L, from 1996 to March 2025. In addition,
Dr. Lederman has been the Managing Member of Seth Lederman Co, LLC since 2007 and was the Managing Member of Lederman & Co, LLC,
or Lederman & Co, from 2002 to March 2025, both of which are biopharmaceutical consulting and investing companies. Dr. Lederman has also been
the Managing Member of Targent Pharmaceuticals, LLC, or Targent, since 2000, and was a Managing Member of Plumbline LLC from 2002 to
March 2025. Targent was a founder of Targent Pharmaceuticals Inc. on which Board of Directors Dr. Lederman served from inception in
2001 until the sale of its assets to Spectrum Pharmaceuticals Inc. in 2006. Between January 2007 and November 2008, Dr. Lederman was
a Managing Partner of Konanda Pharma Partners, LLC, a Director of Konanda Pharma Fund I, LP, and a Managing Partner of Konanda
General Partner, LLC, which were related private growth equity fund entities. As well, between 2007 and 2008, Dr. Lederman was
Chairman of Validus Pharmaceuticals, Inc. and Fontus Pharmaceuticals, Inc., which were portfolio companies of the Konanda private
growth equity funds. Since 2011, Dr. Lederman has served as CEO and Chairman of Leder Laboratories Inc., or Leder Labs, and Starling
Pharmaceuticals Inc., or Starling, which are biopharmaceutical development companies. Dr. Lederman was the chairman of Leder
Laboratories, Ltd., a wholly-owned subsidiary of Leder Laboratories Inc., between 2013 and 2018, when the entity was dissolved. In
2015, Dr. Lederman served as a member of the US – Japan Business Council. Between 2006 and 2011, Dr. Lederman was a director
of Research Corporation, a New York-based non-profit organization. Dr. Lederman received his BA degree in Chemistry from Princeton
University in 1979 and his MD from Columbia University in 1983. Dr. Lederman's significant experience with our patent
portfolio and his experience as an entrepreneur, seed capital investor, fund manager, and director of start-up biopharmaceutical
companies were instrumental in his selection as a member of the Board.

 Richard
Bagger became a Director in June 2020. Mr. Bagger has been a Partner and Executive Director of Christie 55 Solutions,
LLC, a New Jersey based consulting firm, since January 2020. Mr. Bagger has also been an Adjunct Faculty member at the Rutgers
University since 2018. From 2012 through 2019, Mr. Bagger was Executive Vice President of Corporate Affairs
and Market Access for Celgene Corporation (NASDAQ: CELG), a global biopharmaceutical company, as well as a member of its Executive
Committee. From 1993 to 2010, Mr. Bagger held roles of increasing responsibility with Pfizer Inc. (NYSE: PFE), a global pharmaceutical
company, and served as Senior Vice President, Worldwide Public Affairs and Policy, from 2006 to 2009. Prior to joining Pfizer,
Mr. Bagger was Assistant General Counsel of Blue Cross and Blue Shield of New Jersey, a health insurer, and practiced law with
the law firm of McCarter & English. Mr. Bagger served as Board Chair of the National Pharmaceutical Council for 2019 and is
a member of the Board of Directors of the U.S. Chamber of Commerce. He is also on the advisory board for the Lerner Center for
the Study of Pharmaceutical Management Issues at Rutgers University Business School. Mr. Bagger received an A.B. degree from Princeton
University's School of Public and International Affairs and a J.D. degree from Rutgers University Law School. Mr. Bagger's
extensive healthcare and public policy experience were instrumental in his selection as a member of the Board.

 Margaret
Smith Bell became a Director in September 2017. Previously, Ms. Bell
was a Vice President at Standard Life Investments where she was a portfolio manager and health care equity analyst. Ms. Bell was
also a Managing Director at Putnam Investments and served as a senior health care analyst and a portfolio manager of the Putnam
Health Sciences Trust. Ms. Bell was an analyst and vice president at State Street Research and a research analyst at Alex. Brown
& Sons, Inc. Ms. Bell is a past member of the Board of Overseers at Beth Israel Deaconess Medical Center. Ms. Bell holds a
B.A. from Wesleyan University and an M.B.A. from the Wharton School at the University of Pennsylvania. Ms. Bell's extensive
healthcare and investment banking experience were instrumental in her selection as a member of the Board.

 Major
General David Grange (U.S. Army, retired) became a director in February 2018. MG Grange has been President and founder
of Osprey Global Solutions, LLC ("OGS"), a Service Disabled Veterans Organization, since 2011. MG Grange was Chief
Executive Officer of Pharm-Olam International, Ltd. ("Pharm-Olam"), a contract research organization, from April 2017
to October 2019. Prior to founding OGS, MG Grange was a member of the Board of Pharmaceutical Product Development, Inc. (Nasdaq:
PPDI), a contract research organization, from 2003 to 2009, and Chief Executive Officer from 2009 to 2011.

 Prior
to PPDI he served in the McCormick Tribune Foundation for 10 years most recently as Chief Executive Officer and President, where
he also oversaw the support of Veteran Programs. MG Grange served 30 years in the U.S. Army as a Ranger, Green Beret, Aviator,
Infantryman and a member of special operating units. At the Pentagon, he was Director of Army Current Operations, Readiness, and
Mobilization. MG Grange commanded the Ranger Regiment and the First Infantry Division (the Big Red One). MG Grange holds a master's
degree in Public Service from Western Kentucky University. MG Grange's extensive experience in the pharmaceutical industry
and service with the U.S. military was instrumental in his selection as a member of our Board.

 Adeoye
Olukotun, MD became a Director in September 2018. Dr. Olukotun is a board member of Arrowhead Pharmaceuticals (ARWR), a publicly traded biopharmaceutical company. Dr.
Olukotun has been the Chief Executive Officer of CR Strategies, LLC, a medical products consulting company, since 2000. Dr. Olukotun
was the Chief Executive Officer of Genesis Unicorn Corporation, a special acquisition company listed on Nasdaq (GENQU) that became
Genesis Unicorn Capital Corp. (GENQ), and later became ESGL Holdings Ltd trading on Nasdaq (ESGL). Dr. Olukoton was the Chief
Executive Officer of EpiGen Pharmaceuticals, Inc., a pharmaceutical company, from 2014 to January of 2018. Dr. Olukotun served as
Vice Chairman of CardoVax, Inc., a pharmaceutical company, from 2012 to 2016, and as its Chief Executive Officer from 2006 to 2012.
He is also co-founder of VIA Pharmaceuticals, Inc., a pharmaceutical company, and served as the company's Chief Medical
Officer from 2004 to 2008. Dr. Olukotun is a member of the board of directors of Arrowhead Pharmaceuticals. Dr. Olukotun's
extensive medical background and experience in the pharmaceutical industry was instrumental in his selection as a member of our
Board.

 R.
Newcomb Stillwell became a director in March 2023. Mr. Stillwell has held positions of varying responsibility at the law firm
of Ropes & Gray LLP from 1984 to 2021, including, most recently, as co-managing partner of the Ropes & Gray Boston office. Mr.
Stillwell graduated from Harvard Law School and earned an A.B. from Princeton University. Mr. Stillwell's extensive advisory experience
on numerous transactions in the life science and healthcare sectors was instrumental in his selection as a member of the Board.

 Carolyn
Taylor became a Director in July 2021. Ms. Taylor was general counsel of Strike Protocols Inc., a financial technology
company, from 2019 to 2020, and held positions of varying responsibility, including partner, and most recently, of counsel, at
the law firm of Covington & Burling LLP from 1989 to 2000 and 2004 to 2015. From 2000 to 2003, Ms. Taylor served as Executive
Vice President and General Counsel of Longitude, Inc., a financial services company. Ms. Taylor graduated from Columbia Law School
and earned a B.A. from Brown University. Ms. Taylor's broad transactional experience was instrumental in her selection as
a member of the Board.

 James
Treco became a director in February 2019 and has been our Lead Director since March 2020. Mr. Treco continues to be involved
with several small clinical research companies operating out of the Hanover, N ew Hampshire area. Mr. Treco has been a Managing
Partner at First Chicago Advisors, Inc., a boutique financial advisory firm where he advised executives and boards of directors
of a wide range of companies, from global, large-cap companies to emerging companies, from 2009 to 2012 and from 2014 to 2024.
From 2012 to 2013 Mr. Treco was an investment banker with Gleacher & Company, a company that previously operated an investment
banking business, providing corporate and institutional clients with strategic and financial advisory services. Mr. Treco held
various positions of increasing responsibility at Salomon Brothers/Citigroup from 1984 to 2008, where he used his extensive experience
in the global capital markets to advise a wide range of clients. Mr. Treco holds a B.A. from Yale University and an M.B.A. from
the Stanford University Graduate School of Business. Mr. Treco's extensive healthcare and investment banking experience
were instrumental in his selection as a member of the Board.

 Jessica
Morris is our Chief Operating Officer and has worked for the Company since April 2013, first as a consultant (April
2013 – September 2013), then as SVP of Finance (September 2013 – October 2015), followed by Chief Administrative Officer
(October 2015 – January 2016), Acting Chief Financial Officer (January 2016 – February 2016), and Executive Vice President,
Operations (February 2016 – January 2018). Prior to joining the Company, Ms. Morris was a Vice President in investment management
at Zhong Rong Group. Previously, Ms. Morris was a Senior Associate in the Sponsor Finance Group at American Capital, a Vice President
of the mezzanine debt fund at Calvert Street Capital Partners, an Associate in the commercial finance department of Silicon Valley
Bank, and a Financial Analyst in the investment banking group at Deutsche Bank. Ms. Morris earned a B.S. in Commerce and a B.A.
in Music from the University of Virginia, where she was an Echols Scholar.

 Bradley
Saenger, CPA became our Chief Financial Officer in February 2016. Mr. Saenger has worked for us since May 2014, as
the Director of Accounting (May 2014 – December 2015) and VP of Accounting (January 2016 – February 2016). Between
June 2013 and March 2014, Mr. Saenger worked for Shire Pharmaceuticals as a consultant in the financial analyst research and development
group. Since November 2015, Mr. Saenger has been a director of Tonix Pharma Holdings Limited. Between February 2013 and May 2013,
Mr. Saenger worked for Stewart Health Care System as a financial consultant. Between October 2011 and December 2012, Mr. Saenger
was an Associate Director of Accounting at Vertex Pharmaceuticals, Inc. Between January 2005 and September 2011, Mr. Saenger worked
for Alere Inc., as a Manager of Corporate Accounting and Consolidations (2007 – 2011) and Manager of Financial Reporting
(2005 – 2006). Mr. Saenger also worked for PricewaterhouseCoopers LLP, Shifren Hirsowitz, public accountants and auditors
in Johannesburg, South Africa, Investec Bank in Johannesburg, South Africa and Norman Sifris and Company, public accountants and
auditors in Johannesburg, South Africa. Mr. Saenger received his Bachelor's and Honors' degrees in Accounting Science
from the University of South Africa. Mr. Saenger is a Chartered Accountant in South Africa and a Certified Public Accountant in
the Commonwealth of Massachusetts.

 Gregory
Sullivan, MD became our Chief Medical Officer on June 3, 2014 and our Secretary in March 2017. Prior to becoming
our Chief Medical Officer, he served on our Scientific Advisory Board since October 2010, and had also provided ad hoc consulting
services. Previously, Dr. Sullivan had been a member of the faculty of Columbia University since July 1999, where he served as
an Assistant Professor of Psychiatry in the Department of Psychiatry at Columbia University Medical Center (CUMC) until June 2014.
Between June 1997 and August 2014, Dr. Sullivan maintained a part-time psychiatry practice. He served as a Research Scientist
at the New York State Psychiatric Institute (NYSPI) from December 2006 to June 2014. He also served as a member of the Institutional
Review Board of the NYSPI from January 2009 to June 2014. As Principal Investigator and Co-Investigator on several human studies
of PTSD, Dr. Sullivan has administered the recruitment, biological assessments, treatment, and safety of participants with PTSD
in clinical trials of the disorder. He has published more than 50 articles and chapters on research topics ranging from stress
and anxiety disorders to abnormal serotonin receptor expression in depression, PTSD and panic disorder. He is a recipient of grants
from the National Institute of Mental Health (NIMH), the Anxiety Disorders Association of America, NARSAD, the Dana Foundation,
and the American Foundation for Suicide Prevention. Dr. Sullivan received a BA in Biology from the University of California, Berkeley,
and received his MD from the College of Physicians & Surgeons at Columbia University. He completed his residency training
in psychiatry at CUMC, and then a two-year NIMH-sponsored research fellowship in anxiety and affective disorders before joining
the faculty at Columbia.

 Siobhan
Fogarty became our Chief Technical Officer in February 2025. Siobhan has worked for Tonix Pharma Limited, a wholly-owned subsidiary
of the Company, since September 2016, holding roles with increasing responsibility, most recently as Executive Vice President, Product
Development, since February 2021, and prior to that as Vice President, Product Development, since February 2019. Ms. Fogarty started
her career with Elan Corporation as a formulation scientist. Ms. Fogarty moved to Glaxo SmithKline as a manufacturing strategist post
the merger of Glaxo and SmithKline Beecham. Ms. Fogarty established European product development sites for Fuisz Technologies and Biovail
Corporation. Subsequently Ms. Fogarty started her own consultancy company, e MSc, continuing to consult with pharmaceutical
companies in product development and implementation of a phased approach to quality. Ms. Fogarty earned a Bachelor of Science in Industrial
Chemistry from the University of Limerick, and a Masters in Pharmaceutical Science from the School of Pharmacy, Trinity College Dublin.

 Directors
serve until the next annual meeting of shareholders or until their successors are elected and qualified. Officers serve at the
discretion of the Board.

 Board
Independence

 The
Board has determined that (i) Seth Lederman has a relationship which, in the opinion of the Board, would interfere with the exercise
of independent judgment in carrying out the responsibilities of a director and is not an "independent director" as
defined in the Marketplace Rules of The NASDAQ Stock Market and (ii) Richard Bagger, Margaret Smith Bell, David Grange, Adeoye
Olukotun, Newcomb Stillwell, Carolyn Taylor and James Treco are each an independent director as defined in the Marketplace Rules
of The NASDAQ Stock Market.

 Board
Leadership Structure

 Our
CEO also serves as the chairman of the Board. An independent director serves as the Board's lead director. This structure
allows one person to speak for and lead both the Company and the Board, while also providing for effective independent
board oversight through an independent lead director. Having Dr. Lederman, our CEO, serve as Chairman creates clear and unambiguous
authority, which is essential to effective management. Our Board and management can respond more effectively to a clearer line
of authority. By designating our CEO as its Chairman, our Board also sends as an important signal to our employees and shareholders
about who is accountable. Further, since Dr. Lederman is the founder of our Company and is an inventor on key patents and patent
applications underlying our programs, we believe that Dr. Lederman is best-positioned to set our Board's agenda and provide
leadership.

 We
have established the position of lead director, which has been held by Mr. Treco since March 2021. The lead director has the following
responsibilities, as detailed in the Lead Director charter, adopted by the Board (and also performs any other functions the Board
may request):

 Board
 leadership — provides leadership to the Board in any situation where the chairman's role may be,
 or may be perceived to be, in conflict, and also chairs meetings when the chairman is absent;

 Leadership
 of independent director meetings — leads independent director meetings, which take place without any management
 directors or Tonix employees present;

 Additional
 meetings — calls additional independent director meetings as needed;

 Chairman-independent
 director liaison — regularly meets with the chairman and serves as liaison between the chairman and
 the independent directors;

 Stockholder
 communications — makes himself available for direct communication with our stockholders;

 Board
 agenda, schedule & information — works with the chairman regarding meeting agendas, meeting schedules and
 information sent to directors for Board meetings, including the quality, quantity, appropriateness and timeliness of
 such information; and

 Advisors
 and consultants — recommends to the Board the retention of outside advisors and consultants who report directly
 to the Board on Board-wide issues.

 Board
Role in Risk Oversight

 Risk
is an integral part of the Board and Board committee deliberations throughout the year. While the Board has the ultimate oversight
responsibility for the risk management process, various committees of the Board also have responsibility for risk management.
In particular, the Audit Committee focuses on financial risk, including internal controls, and receives financial risk assessment
reports from management. Risks related to the compensation programs are reviewed by the Compensation Committee. The Board is advised
by these committees of significant risks and management's response through periodic updates.

 Stockholder
Communications with the Board

 The
Company's stockholders may communicate with the Board, including non-executive directors or officers, by sending written
communications addressed to such person or persons in care of Tonix Pharmaceuticals Holding Corp., Attention: Secretary, 26 Main
Street, Suite 101, Chatham, New Jersey 07928. All communications will be compiled by the Secretary and submitted to the addressee.
If the Board modifies this process, the revised process will be posted on the Company's website.

 Meetings
and Committees of the Board

the fiscal year ended December 31, 2024, the Board held 11 meetings, the Audit Committee held 10 meetings, the Compensation Committee
held six meetings and the Nominating and Corporate Governance Committee held four meetings. The Board and Board committees also
approved certain actions by unanimous written consent.

 Each
of the directors attended at least 75% of the aggregate of the total number of meetings of our Board (held during the period for
which such directors served on the Board). Each of the directors attended at least 75% of the total number of meetings of all
committees of our Board on which the director served (during the periods for which the director served on such committee or committees).
Dr. Lederman was the only member of the Board who attended last year's annual meeting of stockholders. The Company does
not have a formal policy requiring members of the Board to attend our annual meetings.

 Board
Committees

 The
Board has standing Audit, Compensation, and Nominating and Corporate Governance Committees. Information concerning the membership
and function of each committee is as follows:

 Board Committee Membership

 Name

 Audit

 Nominating and

 Corporate Governance

 Richard
 Bagger

 *

 **

 Margaret
 Smith Bell

 *

 **

 David
 Grange

 *

 *

 Adeoye
 Olukotun

 *

 Newcomb
 Stillwell

 *

 *

 Carolyn
 Taylor

 *

 James
 Treco

 **

 *

 *

 Member
 of Committee

 **

 Chairman
 of Committee

 Audit

 Our
Audit Committee consists of James Treco, Chair of the Committee, Richard Bagger, Margaret Smith Bell and Newcomb Stillwell. Our
Board has determined each of the members are "independent" as that term is defined under applicable SEC rules and
under the current listing standards of the NASDAQ Stock Market. Mr. Treco is our audit committee financial expert.

 Our
Audit Committee's responsibilities include: (i) reviewing the independence, qualifications, services, fees, and performance
of the independent auditors, (ii) appointing, replacing and discharging the independent auditor, (iii) pre-approving the professional
services provided by the independent auditor, (iv) reviewing the scope of the annual audit and reports and recommendations submitted
by the independent auditor, and (v) reviewing our financial reporting and accounting policies, including any significant changes,
with management and the independent auditor. The Audit Committee reviewed and discussed with management the Company's audited
financial statements for the year ended December 31, 2024. Our Board has adopted a written charter for the Audit Committee, a
copy of which is posted under the "Investors" tab under "Governance" on our website, which is located
at www.tonixpharma.com.

 Our
Compensation Committee consists of Margaret Smith Bell, Chair of the Committee, David Grange, Adeoye Olukotun and Carolyn Taylor.
Our Board has determined that all of the members are "independent" under the current listing standards of the NASDAQ
Stock Market. Our Board has adopted a written charter setting forth the authority and responsibilities of the Compensation Committee.

 Our
Compensation Committee has responsibility for, among other things, evaluating and making decisions regarding the compensation
of our executive officers, assuring that the executive officers are compensated effectively in a manner consistent with our stated
compensation strategy, producing an annual report on executive compensation in accordance with the rules and regulations promulgated
by the SEC and periodically evaluating and administering the terms and administration of our incentive plans and benefit programs.
In addition, our Compensation Committee reviews and makes recommendations to the Board regarding incentive compensation plans
that require shareholder approval, director compensation and the related executive compensation information for inclusion in the
Company's Annual Report on Form 10-K and proxy statement, and employment and severance agreements relating to the chief
executive officer. Our Compensation Committee has engaged Aon plc, an independent executive compensation consultant, to provide
guidance with respect to the development and implementation of our compensation programs. Our Board has adopted a written charter
for the Compensation Committee, a copy of which is posted under the "Investors" tab under "Governance" on
our website, which is located at www.tonixpharma.com.

 Nominating
and Corporate Governance Committee

 Our Compensation Committee consists of Margaret Smith Bell, Chair of the
Committee, David Grange, Adeoye Olukotun and Carolyn Taylor. Our Board has determined that all of the members are "independent"
under the current listing standards of the NASDAQ Stock Market. Our Board has adopted a written charter setting forth the authority and
responsibilities of the Compensation Committee. Our Compensation Committee has engaged Aon plc, an independent executive compensation
consultant, to provide advice and recommendations on the structure, amount and form of executive and director compensation and the competitiveness
thereof. At the request of the Compensation Committee, the compensation consultant provided, among other things, comparative data from
selected peer companies. The compensation consultant reports directly to the Compensation Committee. The Compensation Committee's
decision to hire the compensation consultant was not made or recommended by Company management. The compensation consultant has not performed
any work for the Company except with respect to the work that it has done directly for the Compensation Committee.

 Our Compensation Committee has responsibility for, among other things,
evaluating and making decisions regarding the compensation of our executive officers, assuring that the executive officers are compensated
effectively in a manner consistent with our stated compensation strategy, producing an annual report on executive compensation in accordance
with the rules and regulations promulgated by the SEC and periodically evaluating and administering the terms and administration of our
incentive plans and benefit programs. In addition, our Compensation Committee reviews and makes recommendations to the Board regarding
incentive compensation plans that require shareholder approval, director compensation and the related executive compensation information
for inclusion in the Company's Annual Report on Form 10-K and proxy statement, and employment and severance agreements relating
to the chief executive officer. Our Board has adopted a written charter for the Compensation Committee, a copy of which is posted under
the "Investors" tab under "Governance" on our website, which is located at www.tonixpharma.com.

 Nomination
of Directors

 As
provided in its charter and our Company's corporate governance principles, the Nominating and Corporate Governance Committee
is responsible for identifying individuals qualified to become directors. The Nominating and Corporate Governance Committee seeks
to identify director candidates based on input provided by a number of sources, including (1) the Nominating and Corporate Governance
Committee members, (2) our other directors, (3) our shareholders, (4) our Chief Executive Officer or Chairman, and (5) third parties
such as professional search firms. In evaluating potential candidates for director, the Nominating and Corporate Governance Committee
considers the entirety of each candidate's credentials.

 Qualifications
for consideration as a director nominee may vary according to the particular areas of expertise being sought as a complement to
the existing composition of the Board. However, at a minimum, candidates for director must possess:

 high
 personal and professional ethics and integrity;

 the
 ability to exercise sound judgment;

 the
 ability to make independent analytical inquiries;

 a
 willingness and ability to devote adequate time and resources to diligently perform Board and committee duties; and

 the
 appropriate and relevant business experience and acumen.

 In
addition to these minimum qualifications, the Nominating and Corporate Governance Committee also takes into account when considering
whether to nominate a potential director candidate the following factors:

 whether
 the person possesses specific industry expertise and familiarity with general issues affecting our business;

 whether
 the person's nomination and election would enable the Board to have a member that qualifies as an "audit committee
 financial expert" as such term is defined by the SEC in Item 401 of Regulation S-K;

 whether
 the person would qualify as an "independent" director under the listing standards of the Nasdaq Stock Market;

 the
 importance of continuity of the existing composition of the Board to provide long term stability and experienced oversight;
 and

 the
 importance of diversified Board membership, in terms of both the individuals involved and their various experiences and areas
 of expertise.

 The
Nominating and Corporate Governance Committee will consider director candidates recommended by shareholders provided such recommendations
are submitted in accordance with the procedures set forth below. In order to provide for an orderly and informed review and selection
process for director candidates, the Board has determined that shareholders who wish to recommend director candidates for consideration
by the Nominating and Corporate Governance Committee must comply with the following:

 The
 recommendation must be made in writing to the Corporate Secretary at Tonix Pharmaceuticals Holding Corp.;

 The
 recommendation must include the candidate's name, home and business contact information, detailed biographical data
 and qualifications, information regarding any relationships between the candidate and the Company within the last three years
 and evidence of the recommending person's ownership of the Company's common stock;

 The
 recommendation shall also contain a statement from the recommending shareholder in support of the candidate; professional
 references, particularly within the context of those relevant to board membership, including issues of character, judgment,
 diversity, age, independence, expertise, corporate experience, length of service, other commitments and the like; and personal
 references; and

 A
 statement from the shareholder nominee indicating that such nominee wants to serve on the Board and could be considered "independent"
 under the Rules and Regulations of the Nasdaq Stock Market and the SEC, as in effect at that time.

 All
candidates submitted by shareholders will be evaluated by the Nominating and Corporate Governance Committee according to the criteria
discussed above and in the same manner as all other director candidates.

 Prohibition
Against Certain Transactions

 All of our employees and directors are prohibited from hedging or pledging
Tonix stock, or engaging in short sales or trading in standardized options under our Statement of Company Policy on Insider Trading and
Policy Regarding Special Trading Procedures (the "Insider Trading Policy").

 Insider
Trading Policies and Procedures

 We have adopted the Insider Trading. These policies and procedures apply
to all of our directors, officers and employees. We believe that the Insider Trading Policy is reasonably designed to promote compliance
with insider trading laws, rules and regulations, and listing standards applicable to us. A copy of the Insider Trading Policy is filed
as Exhibit 19.01 to this Form 10-K.

 Code
of Ethics

 We
have adopted a Code of Business Conduct and Ethics that applies to all of our directors, officers and employees which can be found
on our website at

 Involvement
in Certain Legal Proceedings

 Our
directors and executive officers have not been involved in any of the following events during the past ten years:

 1.

 any
 bankruptcy petition filed by or against such person or any business of which such person was a general partner or executive
 officer either at the time of the bankruptcy or within two years prior to that time;

 2.

 any
 conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other
 minor offenses);

 3.

 being subject to any order, judgment, or decree, not subsequently reversed,
suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining them from or otherwise limiting their
involvement in any type of business, securities or banking activities or to be associated with any person practicing in banking or securities
activities;

 4.

 being
 found by a court of competent jurisdiction in a civil action, the Securities and Exchange Commission or the Commodity Futures
 Trading Commission to have violated a Federal or state securities or commodities law, and the judgment has not been reversed,
 suspended, or vacated;

 5.

 being
 subject of, or a party to, any Federal or state judicial or administrative order, judgment decree, or finding, not subsequently
 reversed, suspended or vacated, relating to an alleged violation of any Federal or state securities or commodities law or
 regulation, any law or regulation respecting financial institutions or insurance companies, or any law or regulation prohibiting
 mail or wire fraud or fraud in connection with any business entity; or

 6.

 being
 subject of or party to any sanction or order, not subsequently reversed, suspended, or vacated, of any self-regulatory organization,
 any registered entity or any equivalent exchange, association, entity or organization that has disciplinary authority over
 its members or persons associated with a member.

 Delinquent Section 16(a) Reports

 Section 16(a) of the Exchange Act requires our directors, executive officers
and persons who beneficially own more than 10% of our outstanding common shares to file reports with the SEC regarding their share ownership
and changes in their ownership of our common shares. Based on our records and representations from our directors and executive officers,
we believe that all Section 16(a) filing requirements applicable to our directors and executive officers were complied with during the
fiscal year ended December 31, 2024.

 ITEM
11 – EXECUTIVE COMPENSATION

Philosophy and Practices

 We
believe that the performance of our executive officers significantly impacts our ability to achieve our corporate goals. We, therefore,
place considerable importance on the design and administration of our executive officer compensation program. This program is
intended to enhance stockholder value by attracting, motivating and retaining qualified individuals to perform at the highest
levels and to contribute to our growth and success. Our executive officer compensation program is designed to provide compensation
opportunities that are tied to individual and corporate performance.

 Our
compensation packages are also designed to be competitive in our industry. The Compensation Committee from time-to-time consults
with compensation consultants, legal counsel and other advisors in designing our compensation program, including in evaluating
the competitiveness of individual compensation packages and in relation to our corporate goals.

 Our
overall compensation philosophy has been to pay our executive officers an annual base salary and to provide opportunities, through
cash and equity incentives, to provide higher compensation if certain key performance goals are satisfied. We believe that many
of our key practices and programs demonstrate good governance. The main principles of our fiscal year 2024 compensation strategy
included the following:

 An
 emphasis on pay for performance. A significant portion of our executive officers' total compensation is variable
 and at risk and tied directly to measurable performance, including pre-specified corporate, strategic or developmental goals,
 which aligns the interests of our executives with those of our stockholders;

 Performance
 results are linked to Company and individual performance. When looking at performance over the year, we equally
 weigh individual performance as well as that of the Company as a whole. Target annual compensation is positioned
 to allow for above-median compensation to be earned through an executive officer's and the Company's extraordinary
 performance;

 Equity
 as a key component to align the interests of our executives with those of our stockholders. Our Compensation Committee
 believes that keeping executives interests aligned with those of our stockholders is critical to driving toward achievement
 of long-term goals of both our stockholders and the Company. Accordingly, a significant portion of our executives' compensation
 are stock based, including stock options that are exercisable at a percentage above market value at the time of grant; and

 Peer
 group positioning. While the Compensation Committee considers the level of compensation paid by the companies in
 our peer group as a reference point that provides a framework for its compensation decisions, in order to maintain competitiveness
 and flexibility, the Compensation Committee does not target compensation at a particular level relative to the peer group;
 nor does the Compensation Committee employ a formal benchmarking strategy or rely upon specific peer–derived targets.

 In
2024, we also continued practices that demonstrate good governance and careful stewardship of corporate assets, including:

 Limited
 personal benefits. Our executive officers are eligible for the same benefits as our non-executive salaried employees,
 and they do not receive any additional perquisites.

 No
 retirement benefits. We do not provide our executive officers with a traditional retirement plan, or with any supplemental
 deferred compensation or retirement benefits.

 No
 tax gross-ups. We do not provide our executive officers with any tax gross-ups.

 No
 single-trigger cash change in control benefits. We do not provide cash benefits to, or accelerate the vesting of unvested
 equity grants issued to, our executives upon a change in control, absent an actual termination of employment.

 At
our annual meeting in May 2022, we conducted our tri-annual advisory vote on executive compensation, commonly referred to as a
"say-on-pay" vote. At that time, a majority of the votes affirmatively cast on the advisory say-on-pay proposal were
voted in favor of the compensation of our named executive officers. The Compensation Committee understood this level of approval
to indicate strong stockholder support for our executive compensation policies and programs generally, and as a result, our Compensation
Committee made no fundamental changes to our executive compensation programs. We will hold our next say-on-pay vote at the 2025
annual meeting. Our Compensation Committee and our Board will consider shareholder feedback through the say-on-pay vote and remains
committed to engaging with shareholders and are open to feedback from shareholders.

 Summary
Compensation Table

 The
following table provides certain summary information concerning compensation awarded to, earned by or paid to our Chief Executive
Officer, and the two next most highly paid executive officers for fiscal years 2024 and 2023.

 Name & Principal
 Position

 Year

 Salary
 ($)

 Bonus
 ($)

 Stock
 Awards
 ($)

 Option Awards ($) (1)

 Non-Equity
 Incentive Plan
 ($)

 Change in
 Pension Value and
 Non-Qualified
 Deferred
 Earnings ($)

 All Other
 ($)

 Total
 ($)

 2024

 675,000

 417,656

 —

 717,111

 —

 —

 —

 1,809,767

 Chief Executive Officer

 2023

 675,000

 —

 —

 1,375,065

 —

 —

 —

 2,050,065

 Jessica Morris

 2024

 494,000

 180,310

 —

 213,431

 —

 —

 —

 887,741

 Chief Operations Officer

 2023

 475,000

 179,550

 —

 274,049

 —

 —

 —

 928,599

 2024

 483,600

 176,514

 —

 189,867

 —

 —

 —

 849,981

 Chief Financial Officer

 2023

 465,000

 175,770

 —

 264,143

 —

 —

 —

 904,913

 Gregory Sullivan

 2024

 499,200

 182,208

 —

 241,036

 —

 —

 —

 922,444

 Chief Medical Officer

 2023

 480,000

 181,440

 —

 290,558

 —

 —

 —

 951,998

 (1)

 Represents
 the aggregate grant date fair value of options granted in accordance with Financial Accounting Standards Board, or FASB, Accounting
 Standards Codification, or ASC, Topic 718, "Stock Compensation." For the relevant assumptions used in determining
 these amounts, refer to Note 18 to our audited financial statements.

 Grants
of Plan-Based Awards in Fiscal 2024

 The
following table provides information with regard to each grant of plan-based award made to a named executive officer under any
plan during the fiscal year ended December 31, 2024.

 Name

 Grant Date

 All Other Option Awards:
 Number of Securities
 Underlying Options (#)

 Exercise or
 Base Price of
 Option Awards ($/Share)

 Grant Date Fair Value of
 Stock and Option Awards
 ($) (1)

 Seth
 Lederman

 398,408

 79,637

 (2)

 637,474

 Bradley
 Saenger

 95,435

 (2)

 94,432

 Jessica
 Morris

 107,279

 (2)

 106,152

 Gregory
 Sullivan

 121,155

 (2)

 119,881

 (1)
 Represents
the aggregate grant date fair value of options granted in accordance with FASB ASC Topic 718.

 (2)
 Represents
an exercise price at a 125% premium of the closing price of the Company's common stock on the grant date.

 Policies
and Practices Related to the Grant of Certain Equity Awards Close in Time to the Release of Material Nonpublic Information

 We
do not have any formal policy that requires us to grant, or avoid granting, stock options at particular times. Consistent with our annual
compensation cycle, if options are to be granted, the Compensation Committee generally seeks to grant annual stock option awards in connection
with their conducting and completing such annual review, which typically occurs in approximately February of each year. Options are awarded
to our non-employee directors pursuant to our Amended and Restated 2020 Plan, which is awarded on the date of our annual meeting of stockholders.
The timing of any stock option grants in connection with new hires, promotions, or other non-routine grants may be tied to the event
giving rise to the award (such as an employee's commencement of employment or promotion effective date), and in other cases such
grants may be awarded at the same time with other annual grants. As a result, in all cases, the timing of grants of stock options occurs
independent of the release of any material nonpublic information, and we do not time the disclosure of material nonpublic information
for the purpose of affecting the value of executive compensation.

 No
stock options were issued to executive officers in 2024 during any period beginning four business days before the filing of a periodic
report or current report disclosing material non-public information (other than a current report on Form 8-K disclosing a material new
option award grant under Item 5.02(e) of that form) and ending one business day after the filing or furnishing of such report with the
SEC.

Equity Awards at December 31, 2024

 The
following table presents information regarding outstanding equity awards held by our named executive officers as of December 31,
2024.

 Name

 Number of
 Securities
 underlying
 Unexercised
 Options (#)
 Exercisable

 Number of
 Securities
 underlying
 Unexercised
 Options (#)
 Unexercisable

 Option
 Exercise
 Price ($/Sh)

 Option
 Expiration
 Date

 —

 $

 —

 $

 —

 $

 —

 (1)

 $

 —

 $
 352,000,000.00

 3/1/2027

 —

 $
 217,600,000.00

 —

 $
 272,000,000.00

 —

 $
 12,096,000.00

 —

 $
 15,104,000.00

 —

 $
 13,120,000.00

 —

 $
 16,384,000.00

 —

 $
 256,000.00

 —

 $
 320,000.00

 —

 $
 492,800.00

 —

 $
 614,400.00

 —

 $
 780,800.00

 —

 $
 979,200.00

 (2)

 $
 132,416.00

 (2)

 $
 264,800.00

 (2)

 $
 396,992.00

 (2)

 $
 529,408.00

 (3)

 $
 14,624.00

 (3)

 $
 18,272.00

 —

 (4)

 $

 —

 (5)

 $

 —

 (5)

 $

 Jessica Morris

 —

 $

 —

 $

 —

 (1)

 $

 —

 $
 352,000,000.00

 3/1/2027

 —

 $
 217,600,000.00

 —

 $
 272,000,000.00

 —

 $
 12,096,000.00

 —

 $
 15,104,000.00

 —

 $
 13,120,000.00

 —

 $
 16,384,000.00

 —

 $
 256,000.00

 —

 $
 320,000.00

 —

 $
 492,800.00

 —

 $
 614,400.00

 —

 $
 780,800.00

 —

 $
 979,200.00

 (2)

 $
 132,416.00

 (2)

 $
 264,800.00

 (2)

 $
 396,992.00

 (2)

 $
 529,408.00

 (3)

 $
 14,624.00

 (3)

 $
 18,272.00

 —

 (5)

 $

 —

 (5)

 $

 —

 $

 —

 $

 —

 (1)

 $
 1,548,800,000.00

 5/27/2026

 —

 $
 1,548,800,000.00

 5/27/2026

 —

 $
 352,000,000.00

 3/1/2027

 —

 $
 217,600,000.00

 —

 $
 272,000,000.00

 —

 $
 12,096,000.00

 —

 $
 15,104,000.00

 —

 $
 13,120,000.00

 —

 $
 16,384,000.00

 —

 $
 256,000.00

 —

 $
 320,000.00

 —

 $
 492,800.00

 —

 $
 614,400.00

 —

 $
 780,800.00

 —

 $
 979,200.00

 (2)

 $
 132,416.00

 (2)

 $
 264,800.00

 (2)

 $
 396,992.00

 (2)

 $
 529,408.00

 (3)

 $
 14,624.00

 (3)

 $
 18,272.00

 —

 (5)

 $

 —

 (5)

 $

 Gregory Sullivan

 —

 $

 —

 $

 —

 (1)

 $

 —

 $
 352,000,000.00

 3/1/2027

 —

 $
 217,600,000.00

 —

 $
 272,000,000.00

 —

 $
 12,096,000.00

 —

 $
 15,104,000.00

 —

 $
 13,120,000.00

 —

 $
 16,384,000.00

 —

 $
 256,000.00

 —

 $
 320,000.00

 —

 $
 492,800.00

 —

 $
 614,400.00

 —

 $
 780,800.00

 —

 $
 979,200.00

 (2)

 $
 132,416.00

 (2)

 $
 264,800.00

 (2)

 $
 396,992.00

 (2)

 $
 529,408.00

 (3)

 $
 14,624.00

 (3)

 $
 18,272.00

 —

 (5)

 $

 —

 (5)

 $

 (1)

 The
 shares subject to this stock option vest 1/3rd upon the date(s) that certain stock price goals are achieved. The stock price
 goals are such date(s) when the Company's common stock has an average closing sales price equal to or exceeding each
 of $3,840,000,000.00, $4,480,000,000.00 and $5,120,000,000.00 per share for 20 consecutive trading days, subject to a one
 year minimum service period prior to vesting.

 (2)

 The
 shares subject to this stock option vested as to 10% of the shares on February 15, 2023, 10% of the shares on February 15,
 2024, 40% of the shares on February 15, 2025 and 40% of the shares on February 15, 2026.

 (3)

 The
 shares subject to this stock option vested as to 1/3 of the shares on February 23, 2024, with the remaining shares vesting
 on an equal monthly basis over the following 24 months.

 (4)

 The
 shares subject to this stock option were in lieu of a cash award, Dr. Lederman's bonus shall be paid in the form of
 a stock option award granted pursuant to the 2020 Plan, with 100% of such options vesting on the six-month anniversary of
 issuance, expiring 10 years from date of issuance and having an exercise price per share equal to the closing price of the
 Company's common stock on February 27, 2024.

 (5)

 The
 shares subject to this stock option vested as to 1/3 of the shares on February 23, 2025, with the remaining shares vesting
 on an equal monthly basis over the following 24 months.

 Option
Exercises and Stock Vested

 No
options were exercised by any of the named executive officers and no named executive officers held restricted stock units during
the fiscal year ended December 31, 2024.

 Equity
Compensation Plan Information

 The
following table provides certain information with respect to our equity compensation plans in effect as of December 31, 2024.

 Plan
 Category

 Number
 of
 securities to be
 issued upon
 exercise of
 outstanding
 options,
 warrants and
 rights (A)

 Weighted-
 average exercise
 price of
 outstanding
 options,
 warrants and
 rights (B)

 Number
 of
 securities
 remaining
 available for
 future issuance
 under equity
 compensation
 plans (excluding
 securities
 reflected in
 column A) (2) (C)

 Equity
 compensation plans approved by security holders (1)

 3,865

 $

 27,540,609.31

 Equity
 compensation plans not approved by security holders

 —

 —

 —

 Total

 3,865

 $

 27,540,609.31

 (1)

 Consists
 of the Company's 2012 Amended and Restated Incentive Stock Option Plan, the 2014 Stock Incentive Plan, the 2016 Stock
 Incentive Plan, the 2017 Stock Incentive Plan, the 2018 Equity Incentive Plan, the 2019 Stock Incentive Plan, the 2020 Stock
 Incentive Plan, the Amended and Restated 2020 Stock Incentive Plan and the 2019 Employee Stock Purchase Plan, the 2020 Employee
 Stock Purchase Plan, and the 2022 Employee Stock Purchase Plan (the "ESPP").

 (2)

 Consists of shares available for future issuance
under the Amended and Restated 2020 Plan and our ESPP. As of December 31, 2023, 0 shares of common stock were available for issuance
under the Amended and Restated 2020 Plan and 159 shares of common stock were available for issuance under the ESPP.

Contracts and Termination of Employment and Change-In-Control Arrangements

Agreement with Seth Lederman

 On
February 11, 2014, the Company entered into an employment agreement (the "Lederman Agreement") with Dr. Seth Lederman
to continue to serve as our President, Chief Executive Officer and Chairman of the Board.

 The
base salary for Dr. Lederman under the Lederman Agreement was $425,000 per annum and as of March 1, 2025, the base salary is $702,000. The
Lederman Agreement has an initial term of one year and automatically renews for successive one year terms unless either party
delivers written notice not to renew at least 60 days prior to the end of the current term.

to the Lederman Agreement, if the Company terminates Dr. Lederman's employment without Cause (as defined in the Lederman
Agreement) or Dr. Lederman resigns for Good Reason (as defined in the Lederman Agreement), Dr. Lederman is entitled to the following
payments and benefits: (1) his fully earned but unpaid base salary through the date of termination at the rate then in effect,
plus all other benefits, if any, under any group retirement plan, nonqualified deferred compensation plan, equity award plan or
agreement, health benefits plan or other group benefit plan to which Dr. Lederman may be entitled to under the terms of such plans
or agreements; (2) a lump sum cash payment in an amount equal to 12 months of his base salary as in effect immediately
prior to the date of termination; (3) continuation of health benefits for Dr. Lederman and his eligible dependents for a
period of 12 months following the date of termination; and (4) the automatic acceleration of the vesting and exercisability
of outstanding unvested stock awards as to the number of stock awards that would have vested over the 12-month period following
termination had Dr. Lederman remained continuously employed by the Company during such period.

to the Lederman Agreement, if Dr. Lederman's employment is terminated as a result of death or permanent disability, Dr.
Lederman or his estate, as applicable, is entitled to the following payments and benefits: (1) his fully earned but unpaid
base salary through the date of termination at the rate then in effect; (2) a lump sum cash payment in an amount equal to
six months of his base salary as in effect immediately prior to the date of termination; and (3) the automatic acceleration
of the vesting and exercisability of outstanding unvested stock awards.

 If
Dr. Lederman is terminated without Cause or resigns for Good Reason during the period commencing 90 days prior to a Change
in Control (as defined below) or 12 months following a Change in Control, Dr. Lederman shall be entitled to receive, in lieu
of the severance benefits described above, the following payments and benefits: (1) a lump sum cash payment in an amount
equal to 36 months of his base salary as in effect immediately prior to the date of termination, except that, if and while
Dr. Lederman is still entitled to the Sale Bonus (as defined below), it will only be 18 months; (2) continuation of health
benefits for Dr. Lederman and his eligible dependents for a period of 24 months following the date of termination, except
that, if and while Dr. Lederman is still entitled to the Sale Bonus it will only be 12 months; and (3) the automatic acceleration
of the vesting and exercisability of outstanding unvested stock awards.

 If
during the term of the Lederman Agreement or within 120 days after Dr. Lederman is terminated without Cause or resigns for Good
Reason, following a Change in Control, the Company consummates a Change in Control transaction in which the Enterprise Value (as
defined below) equals or exceeds $50 million, Dr. Lederman shall be entitled to receive a lump sum payment equal to 4.4% of the
Enterprise Value (the "Sale Bonus"). The Sale Bonus provision of the Lederman Agreement will terminate
upon the Company granting Dr. Lederman long-term incentive compensation mutually agreed to by the Board and Dr. Lederman.

 For
purposes of the Lederman Agreement, "Cause" generally means (1) commission of an act of fraud, embezzlement
or dishonesty or some other illegal act that has a demonstrable material adverse impact on the Company or any successor or affiliate
of the Company, (2) conviction of, or entry into a plea of "guilty" or "no contest" to, a felony,
(3) unauthorized use or disclosure of the Company's confidential information or trade secrets or any successor or affiliate
of the Company that has, or may reasonably be expected to have, a material adverse impact on any such entity; (4) gross negligence,
failure to follow a material, lawful and reasonable request of the Board or material violation of any duty of loyalty to the Company
or any successor or affiliate of the Company, or any other demonstrable material willful misconduct by Dr. Lederman, (5) ongoing
and repeated failure or refusal to perform or neglect of his duties as required by his employment agreement, which failure, refusal
or neglect continues for 30 days following Dr. Lederman's receipt of written notice from the Board stating with specificity
the nature of such failure, refusal or neglect, provided that such failure to perform is not as a result of illness, injury or
medical incapacity, or (6) material breach of any Company policy or any material provision of the Lederman Agreement.

 For
purposes of the Lederman Agreement, "Good Reason" generally means (1) a material diminution in Dr. Lederman's
title, authority, duties or responsibilities, (2) a material diminution in Dr. Lederman's base compensation, unless
such a reduction is imposed across-the-board to the Company's senior management, and such reduction is not greater than
15%, (3) a material change in the geographic location at which Dr. Lederman must perform his duties, (4) any other action
or inaction that constitutes a material breach by the Company or any successor or affiliate of the Company's obligations
to Dr. Lederman under the Lederman Agreement, or (5) the Company elects not to renew the Lederman Agreement for
another term.

 For
purposes of the Lederman Agreement, "Change in Control" generally means:

 A transaction
 or series of transactions (other than public offerings) that results in any person or entity or related group of persons or
 entities (other than the Company, its subsidiaries, an employee benefit plan maintained by the Company or any of its subsidiaries
 or a person or entity that, prior to such transaction, directly or indirectly controls, is controlled by, or is under common
 control with, the Company) of beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of more than
 40% of the total combined voting power of the Company's securities outstanding immediately after such acquisition;

 (1)
 a merger, consolidation, reorganization, or business combination or (2) the sale, exchange or transfer of all or substantially
 all of the Company's assets in any single transaction or series of transactions or (3) the acquisition of assets
 or stock of another entity, in each case other than a transaction:

 which
 results in the Company's voting securities outstanding immediately before the transaction continuing to represent, directly
 or indirectly, at least 60% of the combined voting power of the successor entity's outstanding voting securities immediately
 after the transaction, and

 after
 which no person or group beneficially owns voting securities representing 40% or more of the combined voting power of the
 Company or its successor; provided, however, that no person or group is treated as beneficially owning 40% or more of combined
 voting power of the Company or its successor solely as a result of the voting power held in the Company prior to the consummation
 of the transaction.

 For
purposes of the Lederman Agreement, "Enterprise Value" generally means (1) in a Change in Control in which consideration
is received by the Company, the total cash and non-cash consideration, including debt assumed, received by the Company, net of
any fees and expenses in connection with the transaction and (2) in a Change in Control in which consideration is payable to the
stockholders of the Company, the total cash and non-cash consideration, including debt assumed, payable to the Company's
stockholders net of any fees and expenses in connection with the transaction. Enterprise Value also includes any cash
or non-cash consideration payable to the Company or to the Company's stockholders on a contingent, earnout or deferred basis.

Agreement with Gregory Sullivan

 On
June 3, 2014, the Company entered into an employment agreement (the "Sullivan Agreement") with Dr. Gregory Sullivan
to serve as our Chief Medical Officer. The base salary for Dr. Sullivan under the Sullivan Agreement was $225,000 per
annum and as of March 1, 2025, the base salary is $519,168. The Sullivan Agreement had an initial term of one year
and automatically renews for successive one year terms unless either party delivers written notice not to renew at least 60 days
prior to the end of the current term.

to the Sullivan Agreement, if the Company terminates Dr. Sullivan's employment without Cause (as defined below) or Executive
resigns for Good Reason (as defined below), Dr. Sullivan is entitled to the following payments and benefits: (1) his fully
earned but unpaid base salary through the date of termination at the rate then in effect, plus all other benefits, if any, under any
group retirement plan, nonqualified deferred compensation plan, equity award plan or agreement, health benefits plan or other
group benefit plan to which Dr. Sullivan may be entitled to under the terms of such plans or agreements; (2) a lump sum cash
payment in an amount equal to 12 months of his base salary as in effect immediately prior to the date of termination; (3) continuation
of health benefits for Dr. Sullivan and his eligible dependents for a period of 12 months following the date of termination;
and (4) the automatic acceleration of the vesting and exercisability of outstanding unvested stock awards as to the number
of stock awards that would have vested over the 12-month period following termination had Dr. Sullivan remained continuously employed
by the Company during such period.

to the Sullivan Agreement, if Dr. Sullivan's employment is terminated as a result of death or permanent disability, Dr.
Sullivan or his estate, as applicable, is entitled to his fully earned but unpaid base salary through the end of the month in
which termination occurs at the rate then in effect.

 For
purposes of the Sullivan Agreement, "Cause" generally means (1) commission of an act of fraud, embezzlement
or dishonesty or some other illegal act that has a demonstrable material adverse impact on the Company or any successor or affiliate
of the Company, (2) conviction of, or entry into a plea of "guilty" or "no contest" to, a felony,
(3) unauthorized use or disclosure of the Company's confidential information or trade secrets or any successor or affiliate
of the Company that has, or may reasonably be expected to have, a material adverse impact on any such entity, (4) gross negligence,
failure to follow a material, lawful and reasonable request of the Company or material violation of any duty of loyalty to the
Company or any successor or affiliate of the Company, or any other demonstrable material misconduct by Dr. Sullivan, (5) ongoing
and repeated failure or refusal to perform or neglect of his duties as required by his employment agreement, which failure, refusal
or neglect continues for 30 days following Dr. Sullivan's receipt of written notice from the Company stating with specificity
the nature of such failure, refusal or neglect, or (6) material breach of any Company policy or any material provision of
the Sullivan Agreement.

 For
purposes of the Sullivan Agreement, "Good Reason" generally means (1) a material diminution in Dr. Sullivan's
title, authority, duties or responsibilities, (2) a material diminution in the executive officer's base compensation,
unless such a reduction is imposed across-the-board to the Company's senior management and such reduction is not greater
than 15%, (3) a material change in the geographic location at which the executive officer must perform his duties, (4) any
other action or inaction that constitutes a material breach by the Company or any successor or affiliate of the Company's
obligations to Dr. Sullivan under the Agreement, or (5) the Company elects not to renew the Agreement for another
term.

Agreement with Bradley Saenger

 On
February 23, 2021, the Company entered into an employment agreement (the "Saenger Agreement") with Mr. Bradley Saenger
to serve as our Chief Financial Officer. The base salary for Mr. Saenger under the Saenger Agreement was $502,944 per
annum as of March 1, 2025. The Saenger Agreement has an initial term of one year and automatically renews for successive
one year terms unless either party delivers written notice not to renew at least 60 days prior to the end of the current term.

to the Saenger Agreement, if the Company terminates Mr. Saenger's employment without Cause (as defined below) or Executive
resigns for Good Reason (as defined below), Mr. Saenger is entitled to the following payments and benefits: (1) his fully
earned but unpaid base salary through the date of termination at the rate then in effect, plus all other benefits, if any, under any
group retirement plan, nonqualified deferred compensation plan, equity award plan or agreement, health benefits plan or other
group benefit plan to which Mr. Saenger may be entitled to under the terms of such plans or agreements; (2) a lump sum cash
payment in an amount equal to 12 months of his base salary as in effect immediately prior to the date of termination; (3) continuation
of health benefits for Mr. Saenger and his eligible dependents for a period of 12 months following the date of termination;
and (4) the automatic acceleration of the vesting and exercisability of outstanding unvested stock awards as to the number
of stock awards that would have vested over the 12-month period following termination had Mr. Saenger remained continuously employed
by the Company during such period.

to the Saenger Agreement, if Mr. Saenger's employment is terminated as a result of death or permanent disability, Mr. Saenger
or his estate, as applicable, is entitled to his fully earned but unpaid base salary through the end of the month in which termination
occurs at the rate then in effect.

 For
purposes of the Saenger Agreement, "Cause" generally means (1) commission of an act of fraud, embezzlement
or dishonesty or some other illegal act that has a demonstrable material adverse impact on the Company or any successor or affiliate
of the Company, (2) conviction of, or entry into a plea of "guilty" or "no contest" to, a felony,
(3) unauthorized use or disclosure of the Company's confidential information or trade secrets or any successor or affiliate
of the Company that has, or may reasonably be expected to have, a material adverse impact on any such entity, (4) gross negligence,
failure to follow a material, lawful and reasonable request of the Company or material violation of any duty of loyalty to the
Company or any successor or affiliate of the Company, or any other demonstrable material misconduct by Mr. Saenger, (5) ongoing
and repeated failure or refusal to perform or neglect of his duties as required by his employment agreement, which failure, refusal
or neglect continues for 30 days following Mr. Saenger's receipt of written notice from the Company stating with specificity
the nature of such failure, refusal or neglect, or (6) material breach of any Company policy or any material provision of
the Saenger Agreement.

 For
purposes of the Saenger Agreement, "Good Reason" generally means (1) a material diminution in Mr. Saenger's
title, authority, duties or responsibilities, (2) a material diminution in the executive officer's base compensation,
unless such a reduction is imposed across-the-board to the Company's senior management and such reduction is not greater
than 15%, (3) a material change in the geographic location at which the executive officer must perform his duties, (4) any
other action or inaction that constitutes a material breach by the Company or any successor or affiliate of the Company's
obligations to Mr. Saenger under the Agreement, or (5) the Company elects not to renew the Agreement for another
term.

Agreement with Jessica Morris

 On February 23, 2021, the Company entered into an employment agreement
(the "Morris Agreement") with Ms. Jessica Morris to serve as our Chief Operating Officer. The base salary for Ms.
Morris under the Morris Agreement was $522,912 per annum as of March 1, 2025. The Morris Agreement has an initial term of one
year and automatically renews for successive one year terms unless either party delivers written notice not to renew at least 60 days
prior to the end of the current term.

to the Morris Agreement, if the Company terminates Ms. Morris's employment without Cause (as defined below) or Executive
resigns for Good Reason (as defined below), Ms. Morris is entitled to the following payments and benefits: (1) her fully
earned but unpaid base salary through the date of termination at the rate then in effect, plus all other benefits, if any, under any
group retirement plan, nonqualified deferred compensation plan, equity award plan or agreement, health benefits plan or other
group benefit plan to which Ms. Morris may be entitled to under the terms of such plans or agreements; (2) a lump sum cash
payment in an amount equal to 12 months of her base salary as in effect immediately prior to the date of termination; (3) continuation
of health benefits for Ms. Morris and her eligible dependents for a period of 12 months following the date of termination;
and (4) the automatic acceleration of the vesting and exercisability of outstanding unvested stock awards as to the number
of stock awards that would have vested over the 12-month period following termination had Ms. Morris remained continuously employed
by the Company during such period.

to the Morris Agreement, if Ms. Morris's employment is terminated as a result of death or permanent disability, Ms. Morris
or her estate, as applicable, is entitled to her fully earned but unpaid base salary through the end of the month in which termination
occurs at the rate then in effect.

 For
purposes of the Morris Agreement, "Cause" generally means (1) commission of an act of fraud, embezzlement
or dishonesty or some other illegal act that has a demonstrable material adverse impact on the Company or any successor or affiliate
of the Company, (2) conviction of, or entry into a plea of "guilty" or "no contest" to, a felony,
(3) unauthorized use or disclosure of the Company's confidential information or trade secrets or any successor or affiliate
of the Company that has, or may reasonably be expected to have, a material adverse impact on any such entity, (4) gross negligence,
failure to follow a material, lawful and reasonable request of the Company or material violation of any duty of loyalty to the
Company or any successor or affiliate of the Company, or any other demonstrable material misconduct by Ms. Morris, (5) ongoing
and repeated failure or refusal to perform or neglect of her duties as required by her employment agreement, which failure, refusal
or neglect continues for 30 days following Ms. Morris's receipt of written notice from the Company stating with specificity
the nature of such failure, refusal or neglect, or (6) material breach of any Company policy or any material provision of
the Morris Agreement.

 For
purposes of the Morris Agreement, "Good Reason" generally means (1) a material diminution in Ms. Morris's
title, authority, duties or responsibilities, (2) a material diminution in the executive officer's base compensation,
unless such a reduction is imposed across-the-board to the Company's senior management and such reduction is not greater
than 15%, (3) a material change in the geographic location at which the executive officer must perform her duties, (4) any
other action or inaction that constitutes a material breach by the Company or any successor or affiliate of the Company's
obligations to Ms. Morris under the Agreement, or (5) the Company elects not to renew the Agreement for another
term.

 Directors
Compensation Table

 Each
of our non-employee directors, other than the lead director, receives an annual cash retainer of $55,000; the retainer for the
lead director is $75,000. In addition, during 2024, each of our non-employee directors received stock options to purchase shares
of our common stock valued at $16,499 as determined by the Black Scholes method on the date of grant, which vest on the next annual
meeting of stockholders. The following table sets forth summary information concerning the total compensation paid to our non-employee
directors in 2024 for services to our Company.

 Name

 Cash Compensation ($)

 Option Awards ($) (1)

 Total ($)

 Richard Bagger

 $

 $

 (2)

 $

 Margaret Smith Bell

 $

 $

 (2)

 $

 David Grange

 $

 $

 (2)

 $

 Adeoye Olukotun

 $

 $

 (2)

 $

 Newcomb Stillwell

 $

 $

 (2)

 $

 Carolyn Taylor

 $

 $

 (2)

 $

 James Treco (3)

 $

 75,000

 $

 (2)

 $

 91,499

 Total:

 $

 405,000

 $

 115,493

 $

 520,493

 (1)

 Represents the aggregate
 grant date fair value of stock options granted in accordance with FASB ASC Topic 718. For the relevant assumptions used in
 determining these amounts, refer to Note 14 to our audited financial statements. These amounts do not necessarily correspond
 to the actual value that may be recognized from the stock option grant.

 (2)

 The aggregate number of shares of common stock underlying stock options outstanding as of December 31, 2024 held by the directors was 33.

 (3)

 Mr. Treco received additional cash compensation for serving as lead director.

 ITEM
12 – SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

 The
following table sets forth certain information regarding beneficial ownership of our common stock as of March 14, 2025:

 by each person who
 is known by us to beneficially own more than 5% of our common stock;

 by each of our officers
 and directors; and

 by all of our officers
 and directors as a group.

 Unless
otherwise indicated in the footnotes to the following table, each person named in the table has sole voting and investment power
and that person's address is c/o Tonix Pharmaceuticals Holding Corp., 26 Main Street, Suite 101, Chatham, New Jersey 07928.

 NAME
 OF OWNER

 TITLE
 OF CLASS

 NUMBER
 OF
 SHARES
 OWNED(1)

 PERCENTAGE
 OF
 COMMON
 STOCK (2)

 Directors and Executive Officers

 (3)

 *

 Jessica Morris

 (4)

 *

 (5)

 *

 Gregory Sullivan

 (6)

 *

 Richard Bagger

 (7)

 *

 Margaret Smith Bell

 (8)

 *

 David Grange

 (9)

 *

 Adeoye Olukotun

 (10)

 *

 Newcomb Stillwell

 (11)

 *

 Carolyn Taylor

 (12)

 *

 James Treco

 (13)

 *

 Officers and Directors as a Group (11
 persons)

 1,946

 (14)

 *

 %

 *
Denotes less than 1%

 (2)
Percentage based upon 6,434,881 shares of common stock issued and outstanding as of March 14, 2025.

 (3) Includes 765 shares of common stock underlying options which are currently
exercisable or become exercisable within 60 days, 1 share of common stock owned by Lederman & Co, and 1 share owned through an IRA
account. Seth Lederman, as the Managing Member of Lederman & Co has investment and voting control over the shares held by these entities.

 (4)
Includes 288 shares of common stock underlying options which are currently exercisable or become exercisable within 60 days.

 (5)
Includes 273 shares of common stock underlying options which are currently exercisable or become exercisable within 60 days.

 (6)
Includes 312 shares of common stock underlying options which are currently exercisable or become exercisable within 60 days.

 (7)
Includes 42 shares of common stock underlying options and restricted stock units which are currently exercisable or vested or

 (8)
Includes 45 shares of common stock underlying options and restricted stock units which are currently exercisable or vested or

 (9)
Includes 45 shares of common stock underlying options and restricted stock units which are currently exercisable or vested or

 (10)
Includes 43 shares of common stock underlying options and restricted stock units which are currently exercisable or vested or

 (11)
Includes 41 shares of common stock underlying options and restricted stock units which are currently exercisable or vested or

 (12)
Includes 41 shares of common stock underlying options which are currently exercisable or become exercisable within 60 days

 (13)
Includes 44 shares of common stock underlying options which are currently exercisable or become exercisable within 60 days

 (14) Includes 1,939 shares of common stock underlying options which are currently
exercisable or vested or become exercisable within 60 days, 1 share of common stock owned by Lederman & Co, and 1 share owned through
an IRA account of Dr. Lederman.

 ITEM
13 – CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

 We
have adopted a written related-person transactions policy that sets forth our policies and procedures regarding the identification,
review, consideration and oversight of "related-party transactions." For purposes of our policy only, a "related-party
transaction" is a transaction, arrangement or relationship (or any series of similar transactions, arrangements or relationships)
in which we and any "related party" are participants involving an amount that exceeds
the lesser of $120,000 or one percent of the average of our total assets at year end for the last two completed fiscal years.

 A
related party is any executive officer, director or a holder of more than five percent of our common stock, including any of their
immediate family members and any entity owned or controlled by such persons.

 Where
a transaction has been identified as a related-party transaction, our Chief Compliance Officer must present information regarding
the proposed related-party transaction to our Nominating and Corporate Governance Committee for review. The presentation must
include a description of, among other things, the material facts, the direct and indirect interests of the related parties, the
benefits of the transaction to us and whether any alternative transactions are available. To identify related-party transactions
in advance, we rely on information supplied by our executive officers, directors and certain significant stockholders. In considering
related-party transactions, our Nominating and Corporate Governance Committee will take into account the relevant available facts
and circumstances including, but not limited to:

 whether the transaction
 was undertaken in the ordinary course of our business;

 whether the related
 party transaction was initiated by us or the related party;

 whether the transaction
 with the related party is proposed to be, or was, entered into on terms no less favorable to us than terms that could have
 been reached with an unrelated third party;

 the purpose of,
 and the potential benefits to us from the related party transaction;

 the approximate
 dollar value of the amount involved in the related party transaction, particularly as it relates to the related party;

 the related party's
 interest in the related party transaction, and

 any other information
 regarding the related party transaction or the related party that would be material to investors in light of the circumstances
 of the particular transaction.

 The
Nominating and Corporate Governance Committee shall then make a recommendation to the Board, who will determine whether or not
to approve of the related party transaction, and if so, upon what terms and conditions. In the event a director has an interest
in the proposed transaction, the director must recuse himself or herself from the deliberations and approval.

the last two fiscal years, there have been no related party transactions.

 ITEM
14 – PRINCIPAL ACCOUNTING FEES AND SERVICES

 Our
independent registered public accounting firm is EisnerAmper LLP, Iselin, New Jersey, PCAOB ID: 274.

 (1)
Audit Fees

 The aggregate fees billed by our independent registered public accounting
firm, for professional services rendered for the audit of our annual financial statements for the years ended December 31, 2024 and 2023,
including review of our interim financial statements as well as registration statement filings with the SEC and comfort letters issued
to underwriters were $648,375 and $522,533, respectively.

 (2)
Audit-Related Fees

 We
did not incur fees to our independent registered public accounting firm for audit related fees during the fiscal years ended December
31, 2024 and 2023.

 (3)
Tax Fees

 We
did not incur fees to our independent registered public accounting firm for tax services during the fiscal years ended December
31, 2024 and 2023.

 (4)
All Other Fees

 None.

 Pre-Approval
Policies and Procedures

 Consistent
with SEC policies and guidelines regarding audit independence, the Audit Committee is responsible for the pre-approval of all
audit and permissible non-audit services provided by our principal accountants on a case-by-case basis. Our Audit Committee has
established a policy regarding approval of all audit and permissible non-audit services provided by our principal accountants.
Our Audit Committee pre-approves these services by category and service. Our Audit Committee has pre-approved all of the services
provided by our principal accountants.

 PART
IV

 ITEM
15 – EXHIBITS, FINANCIAL STATEMENT SCHEDULES

 (c)

 Index to Exhibits

 The
Exhibits listed below are identified by numbers corresponding to the Exhibit Table of Item 601 of Regulation S-K. The Exhibits
designated by an asterisk (*) are management contracts or compensatory plans or arrangements required to be filed pursuant to
Item 15.

 EXHIBIT INDEX

 Exhibit No.

 Description

 3.01

 Articles of Incorporation, filed as an exhibit to the Registration Statement on Form S-1, filed with the Securities and Exchange Commission (the "Commission") on April 9, 2008 and incorporated herein by reference.

 3.02

 Articles of Merger between Tamandare Explorations Inc. and Tonix Pharmaceuticals Holding Corp., effective October 11, 2011, filed as an exhibit to the Current Report on Form 8-K, filed with the Commission on October 17, 2011 and incorporated herein by reference.

 3.03

 Third Amended and Restated Bylaws, filed as an exhibit to the Current Report on Form 8-K, filed with the Commission on June 3, 2016 and incorporated herein by reference.

 3.04

 Certificate of Change of Tonix Pharmaceuticals Holding Corp., dated March 13, 2017 and effective March 17, 2017, filed as an exhibit to the Current Report on Form 8-K, filed with the Commission on March 16, 2017 and incorporated herein by reference.

 3.05

 Certificate of Amendment to Articles of Incorporation, effective June 16, 2017, filed as an exhibit to the Current Report on Form 8-K, filed with the Commission on June 16, 2017 and incorporated herein by reference.

 3.06

 Certificate of Amendment to Tonix Pharmaceuticals Holding Corp.'s Articles of Incorporation, as amended, filed with the Secretary of State of the State of Nevada on May 3, 2019.

 3.07

 Form of Certificate of Designation of Series A Convertible Preferred Stock, filed as an exhibit to the Current Report on Form 8-K, filed with the Commission on October 25, 2022 and incorporated herein by reference.

 3.08

 Form of Certificate of Designation of Series B Convertible Preferred Stock, filed as an exhibit to the Current Report on Form 8-K, filed with the Commission on October 25, 2022 and incorporated herein by reference.

 3.09

 Certificate of Amendment to Tonix Pharmaceuticals Holding Corp.'s Articles of Incorporation, filed as an exhibit to the Current Report on Form 8-K, filed with the Commission on May 16, 2022 and incorporated herein by reference.

 3.10

 Certificate of Amendment to Tonix Pharmaceuticals Holding Corp.'s Articles of Incorporation, filed as an exhibit to the Current Report on Form 8-K, filed with the Commission on January 25, 2024 and incorporated herein by reference

 4.01

 Specimen Common Stock Certificate of the Registrant, filed as an exhibit to the Current Report on Form 8-K, filed with the Commission on May 24, 2018 and incorporated herein by reference.

 4.02

 Form of Warrant, filed as an exhibit to the Registration Statement on Form S-1, filed with the Commission on November 14, 2019 and incorporated herein by reference.

 4.03

 Form of Warrant Agency Agreement, filed as an exhibit to the Registration Statement on Form S-1, filed with the Commission on November 14, 2019 and incorporated herein by reference.

 4.04

 Form of Warrant, filed as an exhibit to the Registration Statement on Form S-1, filed with the Commission on February 6, 2020 and incorporated herein by reference.

 4.05

 Form of Warrant Agency Agreement, filed as an exhibit to the Registration Statement on Form S-1, filed with the Commission on February 6, 2020 and incorporated herein by reference.

 4.06

 Description of Registrant's Securities, filed herewith.

 4.07

 Form of Pre-Funded Warrant, filed as an exhibit to the Current Report on
 Form 8-K, filed with the Commission on July 18, 2023 and incorporated herein by reference.

 4.08

 Form of Common Warrant, filed as an exhibit to the Current Report on Form
 8-K, filed with the Commission on July 28, 2023 and incorporated herein by reference.

 4.09

 Form of Pre-Funded Warrant. filed as an exhibit to the Current Report on Form 8-K, filed with the Commission on December 21, 2023 and incorporated herein by reference.

 4.10

 Form of Series C Warrant. filed as an exhibit to the Current Report on Form 8-K, filed with the Commission on December 21, 2023 and incorporated herein by reference.

 4.11

 Form of Series D Warrant. filed as an exhibit to the Current Report on Form 8-K, filed with the Commission on December 21, 2023 and incorporated herein by reference.

 4.12

 Form of Pre-Funded Warrant, filed as an exhibit to
 the Current Report on Form 8-K, filed with the Commission on March 29, 2024, and incorporated herein by reference.

 4.13

 Form of Series E Warrant, filed as an exhibit to the Current Report on Form 8-K, filed with the Commission on March 29, 2024, and incorporated herein by reference.

 4.14

 Form of Pre-Funded Warrant, filed as an exhibit to
 the Current Report on Form 8-K, filed with the Commission on June 13, 2024, and incorporated herein by reference.

 4.15

 Form of Pre-Funded Warrant, filed as an exhibit to
 the Current Report on Form 8-K, filed with the Commission on June 28, 2024 and incorporated herein by reference.

 4.16

 Form of Pre-Funded Warrant, filed as an exhibit to
 the Current Report on Form 8-K, filed with the Commission on July 10, 2024 and incorporated herein by reference.

 10.01

 Tonix Pharmaceuticals Holding Corp. 2012 Amended and Restated Incentive Stock Option Plan, incorporated herein by reference to Appendix B to our Definitive Proxy Statement on Schedule 14A (File No. 000-54879), filed with the Commission on April 3, 2013.*

 10.02

 Employment Agreement, between Tonix Pharmaceuticals Holding Corp. and Seth Lederman, dated February 11, 2014, filed as an exhibit to the Current Report on Form 8-K filed with the Commission on February 14, 2014 and incorporated herein by reference.*

 10.03

 Tonix Pharmaceuticals Holding Corp. 2014 Stock Incentive Plan, incorporated herein by reference to Annex A to our Definitive Proxy Statement on Schedule 14A (File No. 001-36019), filed with the Commission on May 2, 2014.*

 10.04

 Lease Amendment and Expansion Agreement, dated February 11, 2014, by and between 509 Madison Avenue Associates, L.P. and Tonix Pharmaceuticals, Inc., filed as an exhibit to the Annual Report on Form 10-K filed with the Commission on February 27, 2015 and incorporated herein by reference.

 10.05

 Employment Agreement, between Tonix Pharmaceuticals Holding Corp. and
Gregory Sullivan, dated June 3, 2014, filed as an exhibit to the Current Report on Form 8-K filed with the Commission on June 3, 2014
and incorporated herein by reference.*

 10.06

 Tonix Pharmaceuticals Holding Corp. 2016 Stock Incentive Plan, incorporated
herein by reference to Annex A to our Definitive Proxy Statement on Schedule 14A (File No. 001-36019), filed with the Commission on March
25, 2016.*

 10.07

 Tonix Pharmaceuticals Holding Corp. 2017 Stock Incentive Plan, incorporated
herein by reference to Appendix A to our Definitive Proxy Statement on Schedule 14A (File No. 001-36019), filed with the Commission on
May 2, 2017.*

 10.08

 Tonix Pharmaceuticals Holding Corp. 2018 Equity Incentive Plan, incorporated
herein by reference to our Definitive Proxy Statement on Schedule 14A (File No. 001-36019), filed with the Commission on April 19, 2018.*

 10.09

 Purchase Agreement, dated October 18, 2018, between Tonix Pharmaceuticals
Holding Corp. and Lincoln Park Capital Fund, LLC, filed as an exhibit to the Current Report on Form 8-K filed with the Commission on
October 24, 2018 and incorporated herein by reference.

 10.10

 Tonix Pharmaceuticals Holding Corp. 2019 Stock Incentive Plan, incorporated herein by reference to Appendix A to our Definitive Proxy Statement on Schedule 14A (File No. 001-36019), filed with the Commission on March 18, 2019.*

 10.11

 Tonix Pharmaceuticals Holding Corp. 2019 Employee Stock Purchase Plan, incorporated herein by reference to Appendix B to our Definitive Proxy Statement on Schedule 14A (File No. 001-36019), filed with the Commission on March 18, 2019.*

 10.12

 License Agreement, dated May 20, 2019, between Tonix Pharmaceuticals Holding Corp. and The Trustees of Columbia University in the City of New York, filed as an exhibit to the Quarterly Report on Form 10-Q filed with the Commission on August 12, 2019 and incorporated herein by reference.

 10.13

 Purchase Agreement, dated August 20, 2019, between Tonix Pharmaceuticals
Holding Corp. and Lincoln Park Capital Fund, LLC, filed as an exhibit to the Current Report on Form 8-K filed with the Commission on
August 23, 2019 and incorporated herein by reference.

 10.14

 Asset Purchase Agreement, dated August 19, 2019, between Tonix Pharmaceuticals
Holding Corp. and TRImaran Pharma, Inc., filed as an exhibit to the Quarterly Report on Form 10-Q filed with the Commission on November
8, 2019 and incorporated herein by reference.

 10.15

 First Amended and Restated Exclusive License Agreement, dated August
19, 2019, between Tonix Pharmaceuticals Holding Corp. and Wayne State University, filed as an exhibit to the Quarterly Report on Form
10-Q filed with the Commission on November 8, 2019 and incorporated herein by reference.

 10.16

 Exclusive License Agreement, dated September 16, 2019, between Tonix Pharmaceuticals Holding Corp. and The Trustees of Columbia University in the City of New York, filed as an exhibit to the Quarterly Report on Form 10-Q filed with the Commission on November 8, 2019 and incorporated herein by reference.

 10.17

 Tonix Pharmaceuticals Holding Corp. 2020 Stock Incentive Plan, incorporated herein by reference to Appendix A to our Definitive Proxy Statement on Schedule 14A (File No. 001-36019), filed with the Commission on December 13, 2019.*

 10.18

 Research Collaboration Agreement between Tonix Pharmaceutical, Inc.
and Southern Research Institute, dated November 7, 2018, filed as an exhibit to the Annual Report on Form 10-K, filed with the Commission
on March 24, 2020 and incorporated herein by reference.

 10.19

 License Agreement, dated May 5, 2020, between Tonix Pharmaceuticals
(Canada) Inc. and The Governors of the University of Alberta, filed as an exhibit to the Quarterly Report on Form 10-Q, filed with the
Commission on August 10, 2020 and incorporated herein by reference.

 10.20

 Asset Purchase Agreement, dated June 11, 2020, between Tonix Pharmaceuticals,
Inc. and Trigemina, Inc., filed as an exhibit to the Quarterly Report on Form 10-Q, filed with the Commission on May 12, 2020 and incorporated
herein by reference.

 10.21

 Amended and Restated Exclusive License Agreement, dated June 11, 2020,
between Tonix Pharmaceuticals, Inc. and The Board of Trustees of the Leland Stanford Junior University, filed as an exhibit to the Quarterly
Report on Form 10-Q, filed with the Commission on August 10, 2020 and incorporated herein by reference.

 10.22

 Assignment and Agreement, dated June 11, 2020, between Tonix Pharmaceuticals,
Inc. and The Board of Trustees of the Leland Stanford Junior University, filed as an exhibit to the Quarterly Report on Form 10-Q, filed
with the Commission on August 10, 2020 and incorporated herein by reference.

 10.23

 Purchase and Sale Agreement, dated July 1, 2020, between Tonix Pharmaceuticals
Holding Corp. and Seller named therein, filed as an exhibit to the Quarterly Report on Form 10-Q, filed with the Commission on August
10, 2020 and incorporated herein by reference.

 10.24

 Real Property Purchase and Sale Agreement, dated October 14, 2020, between Tonix Pharmaceuticals Holding Corp. and the Seller named therein, filed as an exhibit to the Quarterly Report on Form 10-Q, filed with the Commission on November 9, 2020 and incorporated herein by reference.

 10.25

 Tonix Pharmaceuticals Holding Corp. Amended and Restated 2020 Stock Incentive Plan, incorporated herein by reference to Appendix A to our Definitive Proxy Statement on Schedule 14A (File No. 001-36019), filed with the Commission on March 30, 2020.*

 10.26

 Employment Agreement, between Tonix Pharmaceuticals Holding Corp. and
Jessica Morris, dated February 23, 2021, filed as an exhibit to the Current Report on Form 8-K filed with the Commission on February
26, 2021 and incorporated herein by reference.*

 10.27

 Employment Agreement, between Tonix Pharmaceuticals Holding Corp. and
Bradley Saenger, dated February 23, 2021, filed as an exhibit to the Current Report on Form 8-K filed with the Commission on February
26, 2021 and incorporated herein by reference.*

 10.28

 Purchase and Sale Agreement, dated March 5, 2021, between Tonix Pharmaceuticals Holding Corp. and the Seller named therein, filed as an exhibit to the Annual Report on Form 10-K, filed with the Commission on March 15, 2021 and incorporated herein by reference.

 10.29

 License Agreement, dated April 14, 2021, between the Company and OyaGen, Inc., filed as an exhibit to the Quarterly Report on Form 10-Q filed with the Commission on May 10, 2021 and incorporated herein by reference.

 10.30

 Purchase Agreement, dated May 14, 2021, by and between Tonix Pharmaceuticals Holding Corp. and Lincoln Park Capital Fund, LLC, filed as an exhibit to the Current Report on Form 8-K, filed with the Commission on May 14, 2021, and incorporated herein by reference.

 10.31

 Purchase and Sale Agreement, dated July 26, 2021, between
the Company and Southern Research, filed as an exhibit to the Quarterly Report on Form 10-Q filed with the Commission on August 9, 2021,
and incorporated herein by reference.

 10.32

 Purchase Agreement, dated August 16, 2022, by and between Tonix Pharmaceuticals
Holding Corp. and Lincoln Park Capital Fund, LLC, filed as an exhibit to the Current Report on Form 8-K filed with the Commission on
August 17, 2022, and incorporated herein by reference.

 10.33

 Tonix Pharmaceuticals Holding Corp. 2022 Employee Stock Purchase Plan,
incorporated herein by reference to Appendix A to our Definitive Proxy Statement on Schedule 14A, filed with the Commission on March
18, 2022.*

 10.34

 Form of Securities Purchase Agreement between Tonix Pharmaceuticals
Holding Corp. and the investors thereto, dated October 25, 2022, filed as an exhibit to the Current Report on Form 8-K, filed with the
Commission on October 25, 2022, and incorporated herein by reference.

 10.35

 Form of Side Letter between Tonix Pharmaceuticals Holding Corp. and
the investors thereto, dated October 25, 2022, filed as an exhibit to the Current Report on Form 8-K, filed with the Commission on October
25, 2022, and incorporated herein by reference.

 10.36

 Form of Registration Agreement between Tonix Pharmaceuticals
 Holding Corp. and the investors thereto, dated October 25, 2022, filed as an exhibit to the Current Report on Form 8-K, filed with the
 Commission on October 25, 2022, and incorporated herein by reference.

 10.37

 Asset Purchase Agreement, dated as of June 23, 2023, by and among Upsher-Smith
Laboratories, LLC, Tonix Medicines, Inc. and Tonix Pharmaceuticals Holding Corp., filed as an exhibit to the Current Report on Form 8-K,
filed with the Commission on June 26, 2023, and incorporated herein by reference.

 10.38

 Transition Services Agreement, dated as of June 30, 2023, by and among Upsher-Smith Laboratories, LLC and Tonix Medicines Inc., filed as an exhibit to the Current Report on Form 8-K, filed with the Commission on July 3, 2023, and incorporated herein by reference.

 10.39

 Placement Agent Agreement, dated July 27, 2023, among Tonix Pharmaceuticals Holding Corp., A.G.P./Alliance Global Partners and Brookline Capital Markets, a division of Arcadia Securities, LLC, filed as an exhibit to the Current Report on Form 8-K, filed with the Commission on July 28, 2023, and incorporated herein by reference.

 10.40

 Placement Agent Agreement, dated September 28, 2023, among Tonix Pharmaceuticals Holding Corp., A.G.P./Alliance Global Partners and Brookline Capital Markets, a division of Arcadia Securities, LLC, filed as an exhibit to the Current Report on Form 8-K, filed with the Commission on September 29, 2023, and incorporated herein by reference.

 10.41

 Loan and Guaranty Agreement, dated as of December 8, 2023, by and among the Loan Parties, the Lenders and the JGB Agent, filed with the Commission on December 8, 2023, and incorporated herein by reference.

 10.42

 Placement Agent Agreement, dated December 20, 2023,
 between Tonix Pharmaceuticals Holding Corp. and A.G.P./Alliance Global Partners, filed as an exhibit to the Current Report on Form 8-K,
 filed with the Commission on December 21, 2023 and incorporated herein by reference.

 10.43

 Placement Agent Agreement, dated March 28, 2024, between Tonix Pharmaceuticals Holding Corp. and A.G.P./Alliance Global Partners, filed as an exhibit to the Current Report on Form 8-K, filed with the Commission on March 29, 2024 and incorporated herein by reference.

 10.44

 Form of Series C Warrant. filed as an exhibit to the Current Report on Form 8-K, filed with the Commission on December 21, 2023 and incorporated herein by reference.

 10.45

 Form of Series D Warrant. filed as an exhibit to the Current Report on Form 8-K, filed with the Commission on December 21, 2023 and incorporated herein by reference.

 10.46

 Placement Agent Agreement, dated March 28, 2024, between Tonix Pharmaceuticals Holding Corp. and A.G.P./Alliance Global Partners, filed as an exhibit to the Current Report on Form 8-K, filed with the Commission on March 29, 2024 and incorporated herein by reference.

 10.47

 Placement Agency Agreement, dated June 12, 2024, between Tonix Pharmaceuticals Holding Corp. and Dawson James Securities Inc., filed as an exhibit to the Current Report on Form 8-K, filed with the Commission on June 13, 2024, and incorporated herein by reference.

 10.48

 Warrant Agent Agreement, dated June 13, 2024, between Tonix Pharmaceuticals Holding Corp. and VStock Transfer, filed as an exhibit to the Current Report on Form 8-K, filed with the Commission on June 13, 2024 and incorporated herein by reference.

 10.49

 Placement Agency Agreement, dated June 27, 2024, between Tonix Pharmaceuticals Holding Corp. and Dawson James Securities Inc., filed as an exhibit to the Current Report on Form 8-K, filed with the Commission on June 28, 2024 and incorporated herein by reference.

 10.50

 Warrant Agent Agreement, dated June 28, 2024, between
 Tonix Pharmaceuticals Holding Corp. and VStock Transfer, filed as an exhibit to the Current Report on Form 8-K, filed with the Commission
 on June 28, 2024 and incorporated herein by reference.

 10.51

 Placement Agency Agreement, dated July 9, 2024, between Tonix Pharmaceuticals Holding Corp. and Dawson James Securities Inc., filed as an exhibit to the Current Report on Form 8-K, filed with the Commission on July 10, 2024 and incorporated herein by reference.

 10.52

 Warrant Agent Agreement, dated July 10, 2024, between Tonix Pharmaceuticals Holding Corp. and VStock Transfer, filed as an exhibit to the Current Report on Form 8-K, filed with the Commission on July 10, 2024 and incorporated herein by reference.

 10.53

 Form of Security Purchase Agreement, filed as an exhibit to the Current Report on Form 8-K, filed with the Commission on July 10, 2024 and incorporated herein by reference.

 10.54

 Sales Agreement, dated July 30, 2024, between Tonix Pharmaceuticals Holding Corp. and A.G.P./ Alliance Global Partners, filed as an exhibit to the Current Report on Form 8-K, filed with the Commission on July 30, 2024 and incorporated herein by reference.

 10.55

 Pay-Off Letter, dated February 3, 2025, by and among the Loan Parties, the Lenders and the JGB Agent, filed as an exhibit to the Current Report on Form 8-K, filed with the Commission on February 3, 2025 and incorporated herein by reference.

 10.56

 Base Agreement between Advanced Technology International (ATI) and Tonix Pharmaceuticals,
Inc., dated July 17, 2023.

 10.57

 Project Agreement No. 1 by and between Advanced Technology International and Tonix
Pharmaceuticals, Inc., dated June 28, 2024.

 14.01

 Code of Business Conduct and Ethics for Employees, Executive Officers and Directors, filed as an exhibit to the Current Report on Form 8-K, filed with the Commission on February 16, 2016, and incorporated herein by reference.

 19.01

 Tonix Pharmaceuticals Holding Corp. Insider Trading Policy, filed herewith.

 21.01

 List of Subsidiaries, filed herewith.

 23.01

 Consent of Independent Registered Public Accounting Firm, filed herewith.

 31.01

 Certification of Chief Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.

 31.02

 Certification of Chief Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.

 32.01

 Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.

 97.01

 Tonix Pharmaceuticals Holding Corp. Compensation Recovery Policy, filed herewith.

 Certain portions of this exhibit, that are not material and would
likely cause competitive harm to the registrant if publicly disclosed, have been redacted pursuant to Item 601(b)(10) of Regulation S-K.

 *
 Denotes a management compensatory agreement or arrangement.

 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.

 Date: March 18, 2025

 By:

 /s/ SETH LEDERMAN

 Chief Executive Officer (Principal Executive Officer)

 Date: March 18, 2025

 By:

 /s/ BRADLEY SAENGER

 Chief Financial Officer (Principal Financial Officer and

Principal Accounting Officer)

 POWER OF ATTORNEY

 KNOW ALL PERSONS BY
THESE PRESENTS, that each person whose signature appears below constitutes and appoints Seth Lederman and Bradley Saenger, jointly
and severally, his or her attorney-in-fact, with the power of substitution, for him or her in any and all capacities, to sign any
amendments to this Annual Report on Form 10-K and to file the same, with exhibits thereto and other documents in connection therewith,
with the Securities and Exchange Commission, hereby ratifying and confirming all that each of said attorneys-in-fact, or his or
her substitute or substitutes, may do or cause to be done by virtue hereof.

 Pursuant to the requirements
of the Securities Exchange Act of 1934, this Annual Report on Form 10-K has been signed below by the following persons on behalf
of the Registrant and in the capacities and on the dates indicated.

 Name

 Position

 Date

 /s/ SETH LEDERMAN

 Chief Executive Officer, President and Director (Principal Executive Officer)

 /s/ BRADLEY SAENGER

 Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

 /s/ RICHARD BAGGER

 Richard Bagger

 /s/ MARGARET SMITH BELL

 Margaret Smith Bell

 /s/ DAVID GRANGE

 David Grange

 /s/ ADEOYE OLUKOTUN

 Adeoye Olukotun

 /s/ NEWCOMB STILLWELL

 Newcomb Stillwell

 /s/ CAROLYN TAYLOR

 Carolyn Taylor

 /s/ JAMES TRECO

 James Treco